Mayor of London's Intervention
The strategy and targets behind the Mayor’s intervention
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The private sector has the greatest potential contribution to the 2025 targets;
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To secure strategically important networks, there must be an introduction of additional value to provide a financial incentive for private developers to include CHP with district heating systems, rather than individual building specific CHP systems;
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When the rate of return of these projects is enough to justify their construction against the level of risk inherent in them, the private sector will naturally take on the projects and the market will deliver its contribution to meet the Mayor’s 25% decentralised energy target;
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The Decentralised Energy for London team will act as a pathfinder, to identify optimal CHP/district heating schemes which are viable means of reducing carbon emissions. This will happen through identifying both the problems faced and the solutions to developing such schemes, to better enable future private and public sector schemes; and
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The Decentralised Energy for London programme will assist boroughs and private developers to assess the technical and financial feasibility and deliverability of DE projects, and prove they are a viable means of reducing carbon emissions.