The Mayor of London’s Energy Efficiency Fund (‘MEEF’), managed by Amber Fund Management Limited (‘Amber’), has provided £15 million to the London Borough of Enfield (‘Enfield’) to part-finance the construction of their Meridian Water Heat Network which will supply over 10,000 new homes with better value, environmentally friendly energy as well as providing funding for the extension to some of Enfield’s existing networks.
The Meridian Water Heat Network is part of a £6 billion regeneration programme led by Enfield Council. The communal heat network will replace local energy generation by supplying heat and hot water through a network of new pipes. This method of energy supply is a proven technology to help reduce the amount of carbon emissions generated in heating London’s buildings.
The Network is forecast to save nearly 5,000 tonnes of carbon dioxide per year compared to gas-fired heating. It will support Enfield 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. The overall carbon saving is equivalent to taking around 4,500 cars off the road, and will be achieved by using waste heat from Edmonton Energy Recovery Facility at the North London Waste Authority EcoPark from 2026 onwards.
It will also help to improve the quality of London’s air by avoiding the need for additional local energy generation. This will reduce the amount of nitrogen oxides released into the atmosphere by 1,600 tonnes from 2026 onwards.
Enfield’s energy company, Energetik, will deliver the schemes on behalf of the Council.
The Meridian Water Heat Network has also secured funding from the Heat Networks Investment Project (‘HNIP’) managed by Triple Point on behalf of the Department of Business, Energy & industrial Strategy (‘BEIS’). Energetik’s project will be the first in the UK to match HNIP and MEEF funding.
Energetik has procured Vital Energi to design, construct and operate the energy centre and heat distribution network to serve the Meridian Water development. Switch2 have been appointed to undertake the customer service operations.
The site preparation works are due to commence in August 2020 with the first customers on the Meridian Water Heat Network coming online in 2022, with later phases of the development being connected as they complete. Energetik has ambitions to extend the heat network and connect as many new developments and existing buildings as possible in the future, in order to maximise the benefit of the low-carbon heat source.
Deputy Mayor for Environment and Energy, Shirley Rodrigues said:
“It’s great to see another low-carbon district energy project get the green light through the Mayor’s Energy Efficiency Fund. The Meridian Water Heat Network will provide hot water and heating to homes from local waste heat sources. Cutting emissions through district energy projects like this is vital as we tackle the twin dangers of London’s toxic air pollution and the climate emergency.
“Projects like Meridian Water and others funded through the Mayor’s Energy Efficiency Fund will have a key role to play in London’s green and sustainable recovery from COVID-19, as well as providing new job opportunities in the district energy sector.”
Enfield’s leader, Cllr Nesil Caliskan said: “It is estimated that one in 11 households in Enfield is classed as fuel poor. That equates to a lot of families who are severely impacted by being unable to live in warm, dry homes. The low-carbon energy infrastructure provided by Energetik supports the delivery of much-needed new homes in the borough and demonstrates the Council’s commitment to sustaining strong, healthy communities and helping to build the local economy.”
Energetik’s Managing Director, Jayne Clare, said: “Heat networks are recognised as an essential part of our future clean energy infrastructure as a way to tackle the climate emergency our planet is facing. Being a locally-owned energy company means we can operate differently to private-sector equivalents. We share the same values as the Council to improve Enfield for the long term by investing in infrastructure now that will reduce the borough’s carbon footprint over the long-term. The MEEF and HNIP match funding allows us to make a modest return, which can be re-invested locally to expand the network and thereby tackle the climate emergency across the borough as well as providing, reliable, low carbon, better value heat to our customers.”
Pete Radford, Investment Director, Amber Infrastructure: “We are delighted to be supporting the delivery of the Meridian Water Heat Network, one of the most ambitious and innovative heat networks in the UK. We hope to see further investments by MEEF in the local authority sector in the coming months as we continue to support councils deliver their climate emergency plans”
Mark Cumbo, Director, Specialised & Project Finance at Santander UK: “We are delighted to support the GLA, the Mayor of London and Amber Infrastructure to help fund this ambitious low carbon project in Enfield. The project demonstrates MEEF’s ambition to help fast track London towards a zero carbon city by 2050 and clearly aligns with our ongoing commitments to the wider community and stakeholders.”
Ken Hunnisett, Project Director, Triple Point Heat Networks Investment Management: “Heat networks form an important part of the Government’s plan to decarbonise heating particularly in cities and high-density areas. The Heat Networks Investment Project was established to help ambitious schemes like the Meridian Water Heat Network hasten the delivery of affordable low carbon heating to the homes and businesses it will serve throughout the Lea Valley. We are delighted to be supporting this scheme and look forward to working with the Energetik team as the network develops.”
Please contact MEEF (email@example.com) to discuss a potential application further.
Further information on MEEF can be found at: www.meef.co.uk
Further information on Amber Infrastructure can be found at: www.amberinfrastructure.com
MEEF was advised by Addleshaw Goddard (legal), Verco Advisory Services (technical) and Osborne Clarke (state aid). Santander, one of MEEF’s funders for this investment, were advised by Trowers & Hamlins (legal).
MEEF was established by the GLA in 2018 and is managed by Amber Infrastructure. MEEF provides senior debt, mezzanine debt or equity to London’s public-sector property owners and small-to-medium-sized businesses, including but not exclusively, Local Authorities, NHS Trusts, Registered Providers, Higher and Further Education organisations, Charities and Voluntary Organisations, ESCOs and SMEs. MEEF is funded in part by the European Regional Development Fund.
ABOUT AMBER INFRASTRUCTURE GROUP
Amber Infrastructure (‘Amber’) is a specialist international investment manager, focused on investment origination, asset management and fund management. With over £8 billion of assets managed, Amber invests in eight countries internationally across six funds and a number of managed accounts. Amber’s core business focuses on sourcing, developing, advising, investing in and managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.
Amber is headquartered in London with offices in Europe, North America and Australia and employs approximately 130 infrastructure professionals.
ABOUT EUROPEAN REGIONAL DEVELOPMENT FUND
MEEF is receiving up to £43 million of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government (and in London the intermediate body Greater London Authority) is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
Energetik is Enfield Council’s energy company, set to supply over 15,000 homes and businesses in North London with low carbon heat through a series of community heat networks. With a company vision to revolutionise the local energy market and be the supplier to trust, Energetik’s heat networks will provide better value energy that’s reliable and environmentally friendly.
The networks are being rolled out in key regeneration areas of Enfield and are designed to adapt so they can expand to supply more homes and businesses and utilise different heat sources as they become available. For more information about Energetik please visit our website at: www.energetik.london