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London 2012 Energy Centre Case Study

London 2012 Energy Centre Case Study

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Client:
Olympic Delivery Authority

Value: £95M

Forms of Contract: Concession Agreement

Programme:  May 2008 to June 2012

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The ODA and Stratford City Developments Ltd (SCDL) entered into a concession agreement with Cofely part of the GDF Suez group for the construction of two new energy centres. These consisted of a combination of CCHP engines, electric chillers, biomass boiler, Aux Boilers, Absorption Chillers. Cofely were also responsible for the supply of district heating and cooling networks to the venues n the Olympic park and the retail units in Westfield shopping centre.

In return for Cofely’s £95 million of Capital Expenditure and £247 million in O&M costs they would retain exclusivity on all new connections and operation rights for the next 40 years. 

Located in the west section of Olympic Park, the Energy Centre is one of the most sustainable and cost-effective facilities of its type to be built, eliminating the need for individual boilers in the new homes created in the Olympic Village and supplying energy to the areas surrounding the Park.

The centre includes a bio-mass boiler that uses sustainable fuels, and a combined heat and power (CHP) plant, generating renewable, low carbon energy for the Park. The biomass boilers contribute 20% of wholly-renewable energy across the Park and zero-carbon renewable resources will lead to carbon reduction of more than 1,000 tonnes per year. Recycled waste-water will be used for the Energy Centre cooling towers. Further efficiencies are gained by using low-temperature community energy networks and the use of materials and technologies that are designed to minimise heat loss during transmission. All in all, the centre is predicted to reduce the Park’s annual carbon emissions by a quarter

The centre’s structure incorporates recycled materials and a derelict Victorian building has been retained to house key equipment components. Flexible, modular building designs avoid over-capacity in the first phase of development and allow future technologies to be introduced as demand grows beyond 2012.

Delivery challenges:

  • Numerous statutory consents and contractual approvals
  • Complex interface arrangements coupled with diverse commercial arrangements
  • Large number of stakeholders with varying interests and influence
  • Complexities arising out of operating at several work places simultaneously
  • Complex programme management to ensure timely delivery across multiple sites

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