Projects

London Borough of Southwark

Energy

Decentralised Energy

MEEF funds innovative retrofit of district heating scheme with water source heat pumps, fed from the London aquifer, supporting Southwark’s green recovery.

Sector

Energy

Decentralised Energy

Location

London, England

Status

Operational

Funding type

Debt £7m

financial close

July 2020

Term length

18 year loan

About

MEEF provided £7 million to the London Borough of Southwark (‘Southwark’) for the installation of Water Source Heat Pumps (‘WSHP’) to replace existing gas boilers, across three council housing estates within the Borough (Consort, Newington and Wyndham).

The scheme provides heat to

0,0 households

The intention is to use the water from the London aquifer and use the WSHP technology to take the naturally heated water to the temperatures required for the district heat network requirements. This has significant green credentials as it is a renewable form of heating, and the scheme is eligible to receive the Renewable Heat Incentive (‘RHI’). The scheme provides heat to 2,175 households and has forecast to save 1,774 tonnes of CO2 per annum.

Forecast to save

0,0 tonnes

CO2 per annum

The Heat Pumps will use heat from aquifer water which will be extracted from newly drilled boreholes and installed wellheads. MEEF is also funding some additional equipment and upgrades to the existing Energy Centre infrastructure, heating controls and auxiliaries. Southwark procured Vital Energi to design, construct and deliver the scheme. The scheme supports Southwark in delivering its Climate Emergency declaration as well as Mayor of London, Sadiq Khan’s ambitions to make London a zero-carbon city and supporting the capital’s green economic recovery.

MEEF selected NatWest as the commercial funding partner to match the MEEF ERDF. The MEEF facility included commitments from the GLA, NatWest and Amber.

Key impacts and benefits

Annual CO2 reduction

0,0 tonnes

Energy saving per annum

0,0,00

kWh

Households benefited

0,0

Sustainable Development Goals (SDGs)

2030 Agenda for Sustainable Development adopted by UN Member States in 2015

SDGs supported:

SDG contribution

Outcomes

The project aligns strongly with MEEF’s Investment Policy and provides significant carbon and energy savings as well as broader benefits to the local community
The project supports the Mayor’s contribution for a green and prosperous recovery, creating the jobs and skills of the future for Londoners and supporting the industries that are crucial to meeting climate targets
The project will create 17,404,073 kWh of energy savings per annum
The project will benefit 2,175 households
The project will save 1,774 tonnes of CO2e per annum, the equivalent of taking over 1,600 cars off the road, and it is expected to reduce energy usage by over 34% compared to existing heating systems while also creating 5.4mw of renewable energy
The heat pumps will also make a positive contribution to air quality by replacing the existing as boilers, which emit harmful NOx and particulate matter

London Borough of Southwark

About

Sustainable Development Goals (SDGs)

Outcomes

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