Minutes:
The Deputy Chairperson welcomed Mr. P. Doyle to the meeting.
The Local Energy Systems Advisor advised the Committee that Reverve had recently won the mini “hackathon” which the Council had held to explore how innovators in the market could deliver and improve the commercial viability of a heat network in Belfast.
Mr. Doyle outlined Reverve’s proposal to help decarbonise Belfast’s district heat network by using renewable electricity which would otherwise be curtailed. He advised the Committee that Northern Ireland currently produced more wind energy than the electricity grid could accommodate, with around 25% of wind generation being curtailed. Reverve’s proposition was to capture the surplus electricity, store it in batteries and use it to power heat pumps, providing a low-carbon source of heat for the City.
Reverve proposed creating a Virtual Power Plant (VPP) made up of hundreds of distributed sites across Northern Ireland. The sites would have solar panels and battery storage. The system would use curtailed wind as the main source of electricity during winter, with solar providing a greater contribution during summer. Batteries would allow renewable electricity to be stored when it was available and dispatched when required.
He described how the proposed system was designed to provide around 67 GWh of zero-carbon heat per year, using approximately 500 participating sites. Electricity would be converted into heat through air-to-water heat pumps and supplied to Belfast’s district heat network. Reverve’s objective was for this electricity to be supplied under a long-term Power Purchase Agreement (PPA) at a price competitive with natural gas, while also providing greater long-term price stability.
The Committee was advised that participating commercial and public buildings would also benefit from the model. Reverve proposed to install additional solar generation and battery storage, with the aim of significantly reducing electricity costs. He stated that generating sites could reduce their power costs by up to 90%, with core assets paid off within five years and additional generation and storage provided at zero net cost to the customer. In return, participating sites would make surplus electricity available to the heat network and other off-takers at a 40% discount.
He outlined a particular opportunity for social housing, whereby tenants could achieve around a 40% reduction in winter heating costs through access to cheaper, battery-shifted renewable electricity.
The Committee was advised that the commercial model would depend heavily on a long-term commitment from Belfast City Council and other off-takers. Reverve proposed a multi-year PPA under which the Council would purchase around 67 GWh of renewable electricity each year for the heat network. The intention being that the long-term commitment would unlock the investment required to develop the wider system.
The longer-term vision was for Belfast to develop a city-wide energy network. Buildings could generate and store electricity, receive heat, or potentially do both. The model could expand gradually to include Housing Executive estates, council buildings, schools, leisure centres, GP practices and commercial or industrial sites, allowing Belfast to build the network incrementally rather than relying on one large centralised system.
Overall, Reverve’s proposal aimed to solve several problems at once: reduce wasted wind energy, provide a low-carbon alternative to gas for heating, reduce energy costs for participating buildings and create a more flexible electricity system. He stated that Belfast could be a potential pioneer for the type of distributed heat and energy network, with a model that could eventually be replicated elsewhere in the UK.
In response to Member’s questions, he confirmed that the price of solar and battery technology had dropped dramatically enabling the new business model to be tested and rolled out in Northern Ireland.
In response to further questions, he advised the Members that customers would be rewarded financially when they shared their stored energy and releasing it at the time of most need.
After discussion, the Chairperson thanked Mr. Doyle for his presentation and he retired from the meeting.
Noted.