Decentralised Energy Systems ~ Major Development

ambitions. Policy NZ.7 Decentralised Energy Systems ~ Major Development This policy applies to all major development proposals including residential, commercial, industrial, institutional, leisure and mixed use. Where viable development will be expected to support the transition to a low-carbon and resilient decentralised energy network in accordance with national policy, including the NPPF , and relevant national energy policy. Development must contribute to achieving net zero, improving energy security, and support low carbon energy infrastructure that enables the decarbonisation of heat and power. A. Energy Hierarchy Major development must demonstrate application of the following energy hierarchy where feasible and viable: • Reduced energy demand. • Maximising energy efficiency. • Incorporating decentralised, renewable or low carbon energy systems. • Use any remaining fossil fuels as efficiently as possible (only where unavoidable). B. Feasibility and Viability Assessment Major development must submit a Decentralised Energy Feasibility and Viability Assessment that: • Evaluates connection to existing and planned heat networks. • Assesses the potential for on site or shared renewable generation. • Considers shared ground loop heat pumps, ambient loop systems, microgrids and energy storage. • Identifies opportunities for demand side response and flexibility. • Assesses the whole life carbon and embodied carbon implications of different energy options. • Demonstrates that higher performing low carbon options have been selected. • Identifies any abnormal site constraints and explains how these have been addressed. • For non-residential development to assess opportunities to act as anchor loads for heat networks. C. Thermal Masterplanning Major development must undertake thermal masterplanning proportionate to the scale, nature and complexity of the proposal, including: • Mapping of heat demand and waste heat sources. • Identification of opportunities for heat network zones or clusters. • Safeguarding on-site routes and connection points necessary for future decentralised energy infrastructure. • Compatibility with low temperature heating systems. • Phasing and future connection potential. • Coordination with adjacent sites to maximise shared infrastructure opportunities. • For commercial/industrial schemes assessment of waste heat recovery potential. D. Heat Network Zones Where a site lies within or adjacent to a designated heat network zone, development must: • Assess the potential for connection to an existing heat network; • Be designed to enable future connection where connection is not currently feasible or viable; • Incorporate low temperature distribution systems compatible with future network supply; • Safeguard sufficient on-site space and connection routes to facilitate future heat network connection where required; and • Avoid installing systems that would preclude future connections. E. Order of preference for Heating and Cooling Systems To support decarbonisation and net zero objectives, major development must follow this order of preference: • Connection to an existing or planned heat network using low carbon heat sources • On site communal low carbon heat systems such as shared ground loop heat pumps or ambient loop systems • Individual low carbon systems such as air source and ground source heat pumps • Other systems only where options above are demonstrated to be unfeasible to unviable • Cooling systems must prioritise passive design, followed by low carbon mechanical systems. For non-residential development, cooling demand must be minimised through passive design and thermal zoning. F . Future Proofing Major development must incorporate infrastructure that enables future decentralised energy solutions including: • Low-temperature heating systems • Roof structures capable of supporting solar PV/thermal • Space for plant, pipework and future energy centre connections • Safeguarding of heat network corridors • Ducting for future electrical upgrades • Smart controls and metering to support flexibility of services • Design that avoids locking into high carbon systems • Provision for future battery storage or thermal storage • Structural capacity for future renewable installations • Passive design measures to reduce heating and cooling demand • For non-residential buildings, space for future waste-heat capture or reuse G. Local Energy Resilience, Grid Capacity and Storage Major development must demonstrate how it contributes to local energy resilience including: • Integration of electrical and/or thermal energy storage • Measures to reduce peak demand • Provision for on-site balancing and flexibility • Design measures that reduce risk of outages, including diversity of supply and redundancy in critical systems • Early engagement with the Distribution Network Operator (DNO) to identify grid constraints • Measures to avoid exacerbating local capacity constraints, including load shifting, smart controls and on-site generation. • Safeguarding space for future grid reinforcement where required • Consideration of microgrid or islanding capability where appropriate. • For major commercial/industrial schemes, assessment of high-load equipment and mitigation of grid impacts. H. Delivery, Phasing and Long Terms Management Major development proposals incorporating communal or decentralised energy infrastructure must submit a Decentralised Energy Delivery and Management Plan that confirms: • Delivery and phasing of decentralised energy infrastructure; • Connection agreements where relevant; • Long term maintenance and management arrangements; • Monitoring of energy performance and carbon outcomes; • Safeguarding of future connection points and corridors where relevant; and Arrangements for shared ownership and governance of com