Energetik District Heating Scheme

Since 2015, Lux Nova has been providing end-to-end legal support for the ground-breaking, local authority driven, energetik DH project, drafting and negotiating the full suite of documentation required for project development, from customer heat agreements through to connection, adoption, construction and operation agreements, bringing to bear our experience on numerous projects across the UK.

As part of the broader energetik offering, Lux Nova has also drafted a bespoke private wire electricity supply agreement for the use of electricity generated by CHP engines on developments by commercial customers and we have also provided in-depth advice on external debt funding, produced a suite of agreements to address state aid affected funds, and local authority governance. 

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The energetik scheme is an ambitious, city-scale project which will provide heating and hot water to thousands of homes in North London, with the potential to provide electricity in the future. The Enfield Council-owned heat company, energtik, has a clear purpose: a mission to provide better value energy that is reliable and low carbon and to revolutionise the local energy market with an aim to become the “local supplier to trust.”

The scheme will see low carbon waste heat utilised from the Edmonton EcoPark as well as other potential heat sources and traditional CHP and boiler units, and a close integration of the scheme with Enfield Council’s regeneration and economic development strategies. 

The scheme has been part funded by the European Investment Bank, through the London Energy Efficiency Fund, has benefited from the European Regional Development Fund and has the backing of the Mayor of London.

Lux Nova Partners has provided an integral role to the development of what is to-date, the largest proposed new district heating scheme in the UK (and one of the most complex). Appointed at the outset of the main stage of project development, other than in relation to property advice, we have provided the full suite of advice required for the scheme, supporting the client through all stages of the project’s development. We continue to provide key support on each phase role out of the scheme, negotiating the plot connection, asset adoption and framework supply agreements with each new Developer being served by energetik. 

Our work on the energetik project was awarded at the annual ADE Awards ceremony 2018, with Tom and Sandy winning the Consultancy of the Year award.

Lendlease’s distributed energy counsel

Lux Nova have acted on a number of Lendlease’s district heating schemes, serving their new build developments. Their go-to lawyers for all distributed energy related issues, we have advised on the Elephant & Castle scheme in South London, the Timberyard scheme in Deptford and on a new (confidential) scheme in North London.

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The largest of their district heating schemes, Elephant & Castle, saw E.ON engaged under a Concession arrangement to install, operate and maintain a district heating scheme to serve the Elephant Park regeneration area. An innovative structure sees bio-gas offsets used to lower the carbon content of heat provided with the low carbon, low cost heat due to serve almost 3,000 homes.

We advised Lendlease as master developer, on the drafting of the full suite of contracts associated with the grant of the Concession to E.ON. From project inception, we advised on how best the client could achieve its aggressive timetable and delivered value to the client through the transferability of our experience working with the client and opposite the energy supplier on other projects, familiarity with the negotiating team and our stake in the documentation in use.  From our engagement in earnest, this project made record progress for a scheme of this size and complexity, closing in just under 9 months during 2014.

We now have an on-going role, advising on each plot connection agreement, connecting the building infrastructure to the main district heating spine, as plots in the regeneration area are developed out in sequence, together with adhoc advice on contract management as the Concession progresses. We have also moved on to assist Lend Lease with their low carbon communal heating scheme at their Timberyard development in Deptford.

ADECOE’s innovation project too improve social housing through smart data

Adecoe is a small business with deep experience in helping the social housing industry meet its energy and climate change challenges.

Adecoe required legal support on a new venture creating a software platform and commercial offering called “Hygge”, which will enable social housing landlords to reduce energy spend and carbon emissions whilst improving maintenance cost performance.  Partly funded by Climate-KIC, the innovative project involved relationships with energy suppliers, landlords and tenants and using granular energy data from smart meters and housing stock technical data.  Legal issues needed to be considered from the start in terms of data protection laws, energy regulation, commercial relationships and intellectual property protection, to ensure the business was compliant, protected and scalable.

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Lux Nova was able to offer a special innovation package to fit with client requirements and budgets. Through meetings, calls and a detailed memo of advice, we provided analysis of how data protection laws and energy regulation applied to the design of the software and the commercial relationships, as well as support on IP protection and drafting NDAs.  In particular, we advised on how consents or other lawful bases might be used to ensure data protection compliance.

Lux Nova’s advice helped Adecoe future-proof the way they set up the commercial relationships and designed the database, software and processes, taking into account the applicable legal frameworks.We also helped the client understand the options for protecting their product through intellectual property rights and commercial agreements.

Cloud software contract for Demand Logic

Construction and use of buildings account for approximately 40% of global carbon emissions, as well having a major impact on the health and wellbeing of every human on the planet (as most of us spend 90% of our lives inside buildings!).

Demand Logic have an Ashden award-winning product that provides benefits on both those fronts. They are able to integrate with the building management and data systems of commercial buildings and provide a cloud-based platform to analyse, take action and improve building performance in terms of occupier comfort and energy use. Partner, David Short, had first-hand experience of Demand Logic as an early adopter of the system in his previous role at GE Capital Real Estate and early stage adviser to the firm.

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As Demand Logic have grown from innovative start-up to major player in their field, their customer terms and conditions were in need of attention. Their SaaS product involves some hardware installation, connection to customer data systems, and storage and analysis of large amounts of data using machine learning. We were instructed to undertake a workshop with the client and to redraft their template customer contract to ensure clarity over ownership and use of data, compliance with data protection laws, protection of IP rights, as well as adapting the document to the commercial reality of their installation process and improving commercial contract points to protect the client properly.

Through working closely with the client to understand the technical aspects of their platform and use of data, as well as some of the commercial issues being experienced when negotiating terms with their major customers, we helped Demand Logic to develop a practical set of terms that should protect their position, ensure fairness to clients and users and speed up the signing process.