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Next Steps in Financing District Energy

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Issue 6 – November 2013 District Energy Vanguards Network Newsletter Table of Contents Editorial 1 UK Policy 2 Open consultations and research funding 2 Reports and documents 2 UK News 2 Europe 3 The Americas 5 China, Asia and Australasia 5 Conferences and workshops 6 General interest, technology and research 6 Glossary 7 Editorial Last week the District Heating Vanguard’s Network hosted their fifth meeting which focused on the financing of local district energy projects. The event was full to capacity and commenced with a civic reception the preceding evening in Glasgow City Chambers, set against the backdrop of the Glasgow City Council’s imminent decision on the selection of a business model to deliver a series of projects building towards a city-wide heat network. Delegates from a range of backgrounds in the municipal, finance and academic sectors from across the UK and as far afield as Calgary, Alberta, heard from expert practitioners and debated the issues arising in intense round table sessions. Issues addressed from potential business models to sources of public and private finance. The presentations from the workshop have now been posted here: “Next Steps in Financing District Energy” and the workshop report should be available at the same link next Friday 6th December. Attendees fed-back that they are finding these meetings increasingly valuable in addressing some of the complex issues that arise out of taking forward a major energy infrastructure project. Whilst all sides were keen to make progress it would seem that a gap still needs to be closed between public and private sector expectations of rates of return and the degree of control required to cover risk. However, all agreed on the continued need for the Energy Company Obligation (ECO) as a significant funding source for the retrofit of DE projects in the existing housing stock. Indications were given that this could benefit thousands of homes and particular case Produced in association with

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