Green light for London projects to reduce carbon emissions
26 August 2009
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Two pioneering projects in London will receive £3.5 million of Government funding to create more responsible energy solutions that help reduce carbon emissions from housing.
With more than a quarter of Britain’s carbon emissions produced from homes, the announcement is an important step towards meeting the Government’s green policy pledges and Britain’s transition to a low carbon country.
Three housing estates in Hackney and a major housing development in Greenwich are among the successful bidders to receive Low Carbon Infrastructure (LCI) funding through the Government’s Homes and Communities Agency (HCA). This funding will be used to link up new or existing homes with low carbon energy plants that are currently operating or through the creation of new plants.
The three estates in Hackney will use £0.5 million to install pipework and other infrastructure that will connect the estates to a Combined Heat and Power (CHP) plant, which will provide low carbon energy to the homes. LCI forms a key element of a package of funding from the HCA, London Development Agency (LDA), Community Energy Saving Programme (CESP) and the London Borough of Hackney. The Council is awaiting the outcome of LDA and CESP funding bids. If these bids are successful at a level that provides the required gap funding, the Council will be able to consider approval of the scheme and release funding already identified within the capital programme.
At Greenwich Peninsula, £3 million will be used to support the creation of an energy centre and the construction of two heat spines for CHP. This will connect a new development that will ultimately consist of 10,000 homes to a London-wide heat network.
Sir Bob Kerslake, chief executive of the HCA, said: "Together with nearly £12m we allocated to low carbon infrastructure schemes across the country in July, this funding will ensure that more Londoners have access to energy that is less harmful to the environment than traditional sources, at a lower cost.
"There is a real appetite for this kind of infrastructure and the benefits it brings to communities and the industry as a whole. We look forward to using the lessons we learn from these innovative projects in our future work at the HCA, to help create and support sustainable places."
Housing Minister John Healey said: "Homes account for a quarter of carbon emission so reducing this is a major part of our efforts to tackle climate change. By making all new homes zero carbon from 2016 we are already leading the way to a much greener housing stock, and lower energy bills for residents. But we also have to make existing homes greener, and this funding will help both new and existing developments to access clean energy sources.
"Energy and Climate Change Minister Lord Hunt said: “This latest round of funding will make it possible for thousands more people to keep warm in their homes whilst reducing energy bills and carbon emissions. Community heating schemes are an excellent example of how we can work together to tackle climate change."
Ends
For more information contact Judith Hewitt, London Communications Manager at the Homes and Communities Agency 0207 633 3484, judith.hewitt@hca.gsx.gov.uk
Notes to editors:
Housing stimulus package
As a result of April’s Budget the HCA will receive an additional £635 million. This is broken down as follows: £400m to unlock developments; £50 million social housing grant to allow local authorities to deliver new social housing (complemented by £50 million capital cover for associated prudential borrowing); up to £80 million to support delivery of the Mortgage Rescue Scheme; £84 million to provide cavity wall insulation in the social sector; £21 million for investment in innovative low-carbon heating systems.
Building Britain’s Future
As a result of the Prime Minister’s recent announcement on Building Britain’s Future, an additional 20,000 new affordable homes will be funded by £1.5 billion over the next two years. This adds to the housing stimulus package announced in the budget and breaks down as follows: £750 million to be allocated via the HCA’s National Affordable Housing Programme; £500 million to unlock developments; and £250 million to allow local authorities to deliver new social housing.
Low carbon infrastructure initiative
Schemes selected were required to meet the following criteria:
- Exemplar status – for instance, size of scheme, support to new and existing homes, technologies deployed.
- Affordable heat and power – provisions to protect the fuel poor.
- Fuel diversity – use of renewables or extending the efficiency of fossil fuels.
- Readiness – ability to allocate and spend the fund within two years.
- Leverage – commitment of funding or assets from other project partners.
Projects were reviewed by an internal group and by our external sounding board, who will assess the technical and financial viability of all projects. In addition to the HCA, the board comprises representatives from:
- Communities and Local Government
- Department of Energy and Climate Change
- Energy Saving Trust
- Faber Maunsell
- Zero Carbon Trust
- Michael King (independent advisor).
The Homes and Communities Agency is the single, national housing and regeneration agency for England. Our role is to create opportunity for people to live in high quality, sustainable places. We provide funding for affordable housing, bring land back into productive use and improve quality of life by raising standards for the physical and social environment.