Lux Nova supports Energy Pro to commercialise new energy efficiency model for SME sector

EnergyPro, the leading energy consultancy and investment firm, is delighted to announce that it has been awarded a new contract by the Department for Business, Energy and Industrial Strategy (BEIS) through the ‘Boosting Access for SMEs To Energy Efficiency (BASEE)’* competition. EnergyPro will develop and launch ESCO-in-a box®, a new business model aimed at unlocking the wide range of financial, environmental and social benefits provided by energy efficiency upgrades for SMEs that traditionally lack the time and resources to implement projects. 

ESCO-in-a-box is an ‘operating system’ for energy services, incorporating all the systems, processes and contract templates needed to deliver energy efficiency projects to SMEs, based on internationally established good practice. The system will be targeted at organisations operating on a regional or market-segmented basis that enjoy trusted reputations and relationships with SMEs, meaning they can work with them to systematically address barriers to increase the uptake of energy efficiency solutions. These organisations will then deliver projects for SMEs in a standardised manner using ESCO-in-a-box. The projects will be investment grade and accessible to financiers, making the customer proposition high quality, low risk and available at no up-front cost to the SME. ESCO-in-a-box system will be available as a ‘franchise’, over time creating a national network of energy services companies (ESCOs) serving SMEs.

The Low Carbon Hub based in Oxford will be the first regional energy services organisation to trial the new business model and will help develop a market-ready version of ESCO-in-a-box in collaboration with a consortium of organisations including: EnergyPro as the business lead; Oxford Brookes Univeristy’s Environmental Information; Basel Agency for Sustainable Energy (BASE); the Energy Systems Catapult; Lux Nova and Huber Dixon Insurance.

Alex Rathmell, MD EnergyPro Consultancy says: “We aim to prove that a local, trusted organisation can successfully deliver energy efficiency services to SMEs provided they are equipped with the right toolkit: standardised project development process, vetted technology partners and contractors, guaranteed savings and suitable finance.” 

Barbara Hammond MBE, CEO of Low Carbon Hub says: “To drastically reduce our carbon emissions, we must quickly address the high energy usage of our buildings – increasing energy efficiency and reducing energy demand. We are thrilled to be a partner on this innovative project, supporting Oxfordshire SMEs to implement energy efficiency measures, reducing their costs and carbon emissions.”

Louisa Cilenti, Partner, Lux Nova says: “We are delighted to have supported EnergyPro to develop a breakthrough services to improve energy efficiency take-up by SME’s and advance a community of best practice to achieve efficient implementation and sustainable transformation for the SME sector.”

Editors Notes: 

EnergyPro Communications and Marketing Manager contact: Lucy Churchill 

Email: lucy.churchill@energyproltd.com 

Mob: 07711 643 112 

Low Carbon Hub Communications and Marketing Manager contact: Tabitha Whiting 

Email: tabitha.whiting@lowcarbonhub.org 

Tel: 01865 246099

EnergyPro Ltd is a leading energy consultancy and investment firm working with corporate and public sector clients and investors helping make business sense of the energy transition. Our areas of expertise include energy, energy efficiency and energy efficiency finance. www.energyproltd.com

Low Carbon Hub is a social enterprise out to prove they can meet our energy needs in a way that’s good for people and good for the planet. They develop community-owned renewable energy projects in Oxfordshire and re-invest 100% of the surplus into supporting local communities in carbon-cutting projects. https://www.lowcarbonhub.org/

Oxford Brookes University’s Environmental Information Exchange (EiE) is a not-for-profit organisation based at Oxford Brookes University providing UK organisations with support to reduce their energy, water, and waste. www.brookes.ac.uk/eie/

Basel Agency for Sustainable Energy (BASE) uses expertise in technology, markets, economics, finance and business development to unlock investment in sustainable energy and meet the challenge of climate change for public and private organisations. http://energy-base.org

Lux Nova is a team of specialist lawyers focusing exclusively on clean energy and market transformational projects. www.luxnovapartners.com

Energy Systems Catapult (ESC) was set up to accelerate the transformation of the UK’s energy system and ensure businesses and consumers capture the opportunities of clean growth. ESC is an independent, not-for-profit centre of excellence that bridges the gap between industry, government, academia and research – _with around 200 staff covering a variety of technical, commercial and policy expertise. https://es.catapult.org.uk/

Huber Dixon Insurance (Energy Group) is an independent insurance broker specialising in providing bespoke solutions for the Energy Efficiency and Renewable Technology sectors.

The Department for Business, Energy and Industrial Strategy (BEIS) 

The Department for Business, Energy, and Industrial Strategy (BEIS) is a ministerial department bringing together responsibilities for business, industrial strategy, science, innovation, energy, growth and climate change.

The Boosting Access for SMEs to Energy Efficiency (BASEE) competition is funded by the BEIS Energy Innovation Programme and further details can be found at: https://www.gov.uk/government/collections/innovations-in-the-built-environment

Latest news from Gov.uk regarding the BASEE competition can be found at: https://www.gov.uk/government/publications/boosting-access-for-smes-to-energy-efficiency-basee-competition-winning-projects

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* https://www.gov.uk/government/publications/boosting-access-for-smes-to-energy-efficiency-basee-competition

Coronavirus (COVID-19)

Dear clients and friends

We hope you and your families are as well as could be and navigating through this challenging period. 

We are taking all precautions at this time to protect our staff, including remote working and suspending face-to-face meetings. Those who work with us closely will know that our business was founded on an ability to be responsive to change and to put our people and your business first, so our systems are already well-tested and it’s very much business as usual. The climate emergency won’t stand still, and neither will we.

We are very proud to belong to such a committed community of people who have long recognised the interconnectedness of everything we do and made fighting climate change a priority. Let’s stay strong together.

Louisa, Tom and Sandy

Lux Nova advises Renewable Energy Assurance Limited on its partnership with MCS and Which? to enhance consumer protection

Lux Nova has advised the small scale renewables consumer protection organisation Renewable Energy Consumer Code (RECC) (part of Renewable Energy Assurance Limited (REAL)), on its  partnership with the Microgeneration Certification Scheme (MCS) and Which? Trusted Traders to improve consumer choice and protections in relation to installation of small scale renewable assets and enhance the offering for MCS registered installers.  

RECC and MCS have welcomed the new arrangements which permit qualifying installers’ RECC membership fees to be included in the MCS “per installation” fee payable when they register on the MCS Installation Database on a “pay as you go” basis. Both MCS and RECC have commented that the new arrangement shows that consumer protection remains at the core of their operations.

Meanwhile the new Which? Trusted Trader arrangements provide qualifying RECC members with both reductions in fees and the benefits of being listed as a Which? Trusted Trader (part of the consumer champion Which?).

Lux Nova’s Stephen Lister said “We are proud of our association with REAL and were delighted to work with Virginia Graham OBE and her team on these arrangements which mark a great start to the new decade for both consumers and RECC”. 

Lux Nova's HNIP template heat network contracts go live

Today, as part of the BEIS funded Heat Networks Investment Project (HNIP) programme, the HNIP consortium has released the suite of template heat network contracts, drafted by Lux Nova.

The work was commissioned by BEIS and these templates have been developed based on feedback received following two rounds of consultation. We are confident that they will be of significant value, and that they will offer a useful starting point to contract creation and negotiation.

The suite of contracts includes templates for Concession Agreements, Plot Connection Agreements, Framework Supply Agreements, Customer Supply Agreements, Energy Centre Leases, DBOM frameworks and Operation and Maintenance Contracts.

To access the Heat Contract Templates known as the “Sales, Operations and Maintenance Set (SOMS)”, please click here.

For information on possible future revision of the documents, please contact: consult@luxnovapartners.com

Background

The Government is committed to investing £320 million in heat networks through the Heat Networks Investment Project (HNIP) as part of its plans to deliver low carbon heating and cooling. Following the recent announcement that £40 million of this funding has been awarded to applicants both in the private and public sector, the benefits of that low carbon heat are expected to be felt as the heat networks are developed. Importantly, the scheme is still open for applications and the HNIP team anticipates further funding announcements as the scheme continues, and as the heat network market gains momentum. 

With just 2% of buildings in the UK currently benefiting from heat networks, the expectation is that this will rise significantly as we step closer towards the UK’s zero emissions target by 2050.  By then, it is predicted that heat networks will supply 17-24% of heating in the UK. 

As the market develops, it becomes increasingly important to raise standards and reduce the costs associated with developing or funding district heating schemes. The templates are aimed at reducing transaction costs and facilitating standardisation across the market.

Lux Nova supports Derillion Energy to transform the renewable energy landscape in the Caribbean with pilot floating solar development in Jamaica

Developer, Derillion Energy, is set to build the first floating solar photovoltaic installation on the Mona Reservoir in Kingston, Jamaica as part of its long-term investment plan for the region. This pilot project will then be scaled up to 45MW where the generated power could be used on-site by the National Water Commission (NWC) or the University of West Indies or used by the state-owned utility the Jamaica Public Service Company to support the grid or exported via a private wire or corporate PPA to a large commercial or industrial user. Derillion are seeking to pair the PV system with a battery storage system and grid frequency response to unlock new sources of flexibility. Lux Nova played a key role in structuring the transaction, working closely with greenCrowd and Derillion, including creating the licensing structure for floating solar arrays on the Reservoir as well as negotiating the lease arrangements with NWC.

Louisa Cilenti said “I am delighted that we have been able to work with Derillion and alongside greenCrowd to establish this innovative project and create a replicable framework for other projects to succeed as part of Jamaica’s commitment to generate 50% of the country’s electricity from renewable sources by 2030.”

District Heating mentoring scheme "Heat Exchanger" launching

Lux Nova are pleased to have helped with the development of the “Heat Exchanger” mentoring programme.

The programme was launched at the Connecting Women in District Heat conference on 9 December 2019.

If you would like to be involved as a mentor or as a mentee, follow this link to apply before 28th January.

Nicky Butterworth who’s been leading on the project with Will Routh and Lily Frencham says:

The New Year is the perfect time to reflect and think about what you hope to achieve in 2020. If professional development is part of your plans for the next 12 months you might like to consider being a mentor or mentee. 

The Heat Exchanger Mentoring Pilot is now open for applications. Mentor and mentee applicants are asked to provide a small amount of information via Survey Monkey before close of business Thursday 28th January 2020. We look forward to hearing from you.

Going the extra length... help our ice swim fundraiser for LNP charity of the year, Power for the People

Lux Nova’s Sandy Abrahams is going the “extra length” to fundraise for LNP’s charity of the year, Power for the People as part of the Big Give Christmas Challenge 2019. PfP work with some of the world’s poorest communities, where people do not have secure access to food and lack the income to meet even their most basic needs. PfP helps create sustainable futures with renewable energy and holistic local economic development.

To raise funds for PfP, Sandy will swim in the International Cold Water Swimming Championships in Lake Bled in Slovenia in February, where the ice will be cut to make “swimming pools” for the swimmers and the water will be just above freezing! She is training through the winter, braving the near freezing temperatures of the Hampstead ponds and the wilds of the Atlantic sea over Christmas.

Sandy’s target is to raise £1250. This money will go towards PfP’s project, Champion Women Entrepreneurs. Your donations will support women like Esther and Centrine, pictured, to build sustainable poultry farms that provide vital income and food security for their families, and develop life skills to overcome the fear, abuse and violence they face daily.

This is part of PfP’s larger campaign to raise £12,475 through the Big Give Christmas Challenge 2019 which will then be matched by our generous match funders to double your donation and transform the lives of 175 women.

We have until the midday on the 10th December to double every donation made.

Please help us hit Sandy and PfP’s target!

PLEASE Donate here: Big Give Christmas Challenge 2019

Lux Nova advise Blue Elephant on sale of 47MW solar portfolio

We have advised the Hamburg-based independent operator of solar and wind farms, Blue Elephant Energy AG (BEE), on the sale of their UK solar park portfolio. The portfolio has an installed capacity of 47,56 megawatt and was acquired by the London-based investor Elm Trading Group, who are advised by Alpha Real Renewables.

The portfolio was project financed by Bayerische Landesbank and consists of nine operational solar parks that were commissioned between December 2015 and March 2017. The solar parks are located in the regions of South Wales, Somerset and West Sussex. 

With the sale of its UK portfolio, BEE has now withdrawn from the UK market. BEE’s press release notes that “the company is now no longer exposed to the ongoing Brexit discussions and GBP/EUR currency risk”.

To read more, click here

Lux Nova’s project lead, Nikola Zahariev, commented:

“It has been very rewarding to work with the BEE team on this sale, which is of transformational importance to BEE’s business. Having worked with the BEE management team for over 5 years, I am very proud to have advised them on yet another step of their successful journey. The transaction shows that the secondary market for good quality solar assets remains very competitive - and will continue to be so until significant new generation capacity is built out.”

Lux Nova advise on refinancing of the largest community-owned solar farm in the UK

Lux Nova are proud to have contributed to the refinancing of the 14.7MW community-owned Drayton Manor solar farm array in Warwickshire, advising the Project Companies.

The Project is the largest community-owned solar farm in the UK and is managed by Communities for Renewables (CfR) CIC. 

The 60,000 solar panel solar farm is owned by Heart of England Community Energy and has the capacity to generate 14.7MW of electricity – enough to power around 4,500 homes. It is co-located with 3MW of batteries operated by a third party, meaning that the site is used both to generate clean solar energy and provide battery storage services to the grid. 

The project is unique in its combination of community ownership, solar power and battery storage, and two layers of senior and junior finance.

The transaction was undertaken to secure long-term, lower-cost finance for the solar project, with reduced loan repayments allowing more money to be used to support community projects. The total financing package of £16.3 million combines senior loans of around £12 million from Triodos Bank UK with junior loans from Social and Sustainable Capital (SASC) of around £4.3 million. SASC provided capital to fund the community acquisition of the solar farm in 2016. 

Heart of England Community Energy uses profits from the solar farm to support a fuel poverty advice service run by local charity Act on Energy and a community grant fund. The community grant fund has so far provided funding to Harbury e-Wheels, a Warwickshire-based community transport charity, and SolarAid, a charity working in Africa to provide solar lights. 

Lux Nova’s head of project finance, Louisa Cilenti, commented:

“It has been so rewarding to contribute to this solar park on yet another step of its journey, having already advised on the original acquisition into community hands in 2017. The community now benefits from a utility scale park, coupled with battery storage, and a competitive financing package. This result combines so much of what Lux Nova stand for and we are very grateful to CfR for giving us the opportunity to work on the refinancing.”

About Communities for Renewables CIC 

Communities for Renewables (CfR) CIC is a mission-led community interest company which helps communities to set up local energy enterprises and works with them to develop, finance and manage their own renewable energy generation. CfR has managed the development and financing of around £56million of community solar projects and manages 50Mw of community solar projects for 7 different community energy enterprises, including Heart of England Community Energy.   

Further coverage

Communities for Renewables

Solar Power Portal

Triodos Bank

Lux Nova advise GridX Africa Development on landmark solar battery project in Mozambique

Lux Nova has advised Mauritius-based renewable power developer GridX Africa Development on the closing of its first funding from Ncondezi Energy to construct, operate and manage a landmark solar battery project for a commercial customer in Mozambique. Commissioning of the project is expected within 8 months and the plant will generate around 660MWh/yr.

This is the first project in a portfolio of commercial and industrial (C&I) solar and battery projects across Africa being developed by GridX.

Newly appointed Ncondezi chief executive Hanno Pengilly said of the project last week, “today’s announcement marks the company’s strategic entry into the disruptive C&I renewables and battery storage energy sector with an investment in a construction ready project. The project’s technical solution will provide 100% off-grid energy supply and is believed to be one of the first solar PV and battery storage projects of this size in Mozambique.”

We look forward to continuing to support GridX’s ambitions to make non-subsidised solar and battery projects based solely on customer offtake and credit, an integral part of the C&I power landscape across Africa.

To read more