Exeter Energy Network Project
The Exeter Energy Network project refurbishes the energy centre at Wonford hospital and delivers a heat network to take heat from the hospital to the city centre. The energy centre refurbishment includes increasing the capacity of the current 1MWe gas CHP to 3MWe, replacing boilers and other equipment and installing 100m3 of thermal storage. The new CHP provides 16GWh of electricity to the RD&E. Heat supplies at Wonford hospital comprise 4GWhth of steam, 12GWhth of medium temperature hot water and the supply of heat to outlying building on the site through the core heat network. The core heat network is 6.5km long and provides total of 21GWhth through low temperature hot water to commercial heat users along a corridor into the city centre. The initial capital cost of the core scheme is estimated at £17.5m. More detailed technical and cost information is provided in the PB|WSP studies which are available on the Dextco website.
Dextco’s initial evaluation assumes the formation of a largely debt funded single entity joint venture (JV) which would design, build, finance and operate the facilities. It is anticipated that the JV entity will lease the Wonford hospital energy centre land from the RD&E and own the energy centre equipment.
Dextco’s objectives are being used to develop a suite of contract documents. Drafts will be provided to potential bidders at procurement launch and may, subject to the adopted JV structure, include:
- JV partnership/shareholder agreement(s) and articles
- Concession agreement
- Energy centre lease agreement
- D&B and O&M agreements
- Gas purchase agreement
- Electricity sales agreement
- Use of system/tariff agreement
- Heat connection agreement
- Heat sales agreements
- Funding agreements.
There is commitment from shareholders to provide Dextco with approximately £1 million of equity funding. The balance of funding will be a combination of private sector equity and debt finance and, if required, HNIP funding (subject to a successful application).