Delivering energy efficiency
Retrofit Roundtable 10th June 2013
Delivering energy efficiency
Retrofit Roundtable
Lisa Taylor
Interim Director, Future of London
Agenda 8.30
Arrivals and refreshments
8.50
Welcome & background – Lisa Taylor
8.55
Chair’s introduction – Antonio Irranca
9.00
Green Deal and ECO take-up – Andrew Benfield GLA toolkit and Programme Delivery Unit feedback - Larissa Bulla East London retrofit pilot – Nigel Turner New ECO options for the public sector – Peter Feehan and Becca Aspinwall Borough experience of community engagement – Damian Hemmings with Kevin Godding
10.15
Summary, refreshments and networking
10.30
Close
Delivering energy efficiency
Retrofit Roundtable
Antonio Irranca
Vibrant Energy Matters
Delivering energy efficiency
Retrofit Roundtable
Andrew Benfield Energy Saving Trust
Delivering energy efficiency
Retrofit Roundtable
Larissa Bulla
Greater London Authority
Domestic retrofitting in London: realising the opportunity Larissa Bulla Principal Policy & Programme Officer 10th June 2013
Overview •
London context for energy retrofitting
•
Challenges and opportunities
•
The Mayor’s domestic retrofit programme
London retrofitting context • London currently emits 44.7 million tonnes of carbon dioxide annually, 79% of these emissions are from buildings • The Mayor has set a 60 per cent carbon dioxide reduction target for London by 2025 •Nearly 80% of London’s existing buildings will still be in use in 2050
London's Low Carbon and Resource Efficient Economy The market opportunity Global – approximately £3.2 trillion, 1.4 million companies, 28 million employees and forecast growth between 5.2% and 7.2% pa up to 2019/20
UK - approximately £116 billion, 49,800 companies, 878,000 employees and forecast growth between 3.4% and 4.3% pa to 2014/15
London – approximately £23 billion, 9,200 companies, 159,700 employees and forecast growth between 4.6% and 5.6% to 2014/15
The Mayor’s environment programmes are designed both to: •Address environmental issues •Use the size of the London market to stimulate demand in the low carbon and environmental goods and services sector and create market opportunity and jobs
The Mayor wants London's businesses and workers to be able to access these opportunities
Retrofit and the low carbon economy
2011 Energy Act: Green Deal •
Green Deal: Pay-As-You-Save approach that includes an accredited home assessment; finance from Green Deal Provider at no upfront cost, repaid through a charge on home’s energy bills
•
Golden Rule - Measures that can be installed will be accredited. The Golden Rule will be applied - ‘the charge attached to the bill should not exceed the expected savings, and the length of the payback period should not exceed the expected lifetime of the measures.’
•
Market driven - Any organisation can become a Green Deal provider, as long as they are accredited.
•
Energy Company Obligation (ECO) – Will provide crosssubsidy for hard-to-treat insulation and install energy efficiency measures in fuel poor homes
The Energy Company Obligation (ECO)
1
Affordable Warmth Target (£350million per year) • For vulnerable fuel poor homes in private tenures. • Provides insulation and heating measures.
2
Carbon Saving Target (£760 million per year) • Provides internal or external solid wall insulation or insulation for hard to treat cavity walls
Carbon saving communities target (£190 million per year)
3
• For homes in areas of lowest income – likely to provide basic insulation in all tenures
Domestic retrofitting in London: Challenges and Opportunities
London retrofitting context Drivers for retrofitting activity include: •Carbon dioxide reduction •Alleviating fuel poverty •Creating market opportunities for London's businesses •Creating job opportunities for Londoners Challenges to delivery including: •Higher delivery costs •High levels of fuel poverty •High proportion of flats •Lots of conservation areas Considerable market opportunity: •3.2 million homes in London •22% of England’s solid walls are in London
Planning Challenge •
Most councils require planning permission for SWI installation not defined as PD by new DCLG guidance
•
Some have waived this for street properties in non conservation areas
•
All councils require permission for SWI and other measures in conservation areas and it can be very hard to get permission
•
Delivery agents do not have clear understanding of when planning permission is required and where it is likely to be granted
What boroughs are looking for from energy retrofitting schemes Green Deal Outputs - Other
Green Deal Outputs - Scored Benefit Score / 6 Tackle fuel poverty Promote local jobs Reduce CO2 emissions Health benefits Low-carbon sector growth
Benefit Promote and enhance brand of Borough
4.6 4.0 3.3 3.2 2.4
Support social enterprise Regeneration Income generation Communities involvement Improved equality Cost savings for consumer Co-operative council Broad offering of solutions Being a lead borough
History of attracting CERT Average measures installed per domestic property
London’s share of ECO funding
Source: DECC 2012 p.19
21/06/2013
Financing retrofit in London social housing
•
12% of total properties are in London but solid walled properties are much more prevalent in London
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The capital has a 21% share of the ECO pot which excluding the Affordable Warmth element is £232m
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Assuming little initial uptake by the private sector there is £232m annual funding available to social landlords for solid wall insulation and hard to treat cavity insulation.
London ECO Carbon Saving Community LSOAs
http://www.london.gov.uk/webmaps/housing/domestic_retrofit.htm
The Mayor’s projects and programme to catalyse domestic retrofit at scale
Using local powers to maximise energy efficiency delivery •
Aim: To identify and share best practice on using local authority powers to maximise the amount of homes benefitting from energy efficiency retrofitting works taking place in London
•
Elements: •
Online survey with councils and delivery agents
•
Series of half-day learning workshops on key challenges
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Development of ‘how to’ materials on each challenge, including case studies, briefings, checklists and business case
Early pipeline of retrofit projects De-risked pipeline of London retrofit projects - Capex About to start / in progress Awaiting approval or funding Feasibility study completed Scoping stage Concept £0
£50
£100
£150
£200
£250
Concept - potential
Millions
De-risked pipeline of London retrofit projects - no. of properties About to start / in progress Awaiting approval or funding Feasibility study completed Scoping stage Concept 0
5
10
15
20
25
30
35
40
45 Thousands
Concept - potential
The RE:NEW Support Team RE:NEW Programme Delivery Unit Role: Enabling pipeline, tracking progress, reporting risk, managing communications and managing the RE:NEW framework Potential support available to organisations: Development Implementation Procurement Funding / Financing • Stock data support • Retrofit programme support • Scoping / stock analysis to identify retrofit projects • Standard data templates • Networking / partnering to aggregate projects and share best practice
• Information on funding sources • Support organisations applying for funding • Networking / partnering for aggregated funding opportunities • Networking / partnering with funders
• Template specifications & contracts Support producing specifications • Support accessing frameworks e.g. help running mini competitions • Benchmarking • Networking / partnering for joint procurement
• Advice on delivery • Support with planning • Share & review best practice of: - Delivery and funding - Benchmarking - Procurement / contracting - Tenant engagement
RE:NEW framework: Framework procured by GLA, available for use by social housing providers & local authorities Different types of organisation require different support
Social housing RSLs Local authorities ALMOs
Private Sector Local authorities
Private rented sector Future support to other organisations including large and small PRS landlords etc.
The level of support available and final structure is being worked up in more detail
Larissa Bulla Principal Programme and Policy Officer larissa.bulla@london.gov.uk 020 7983 4308
Delivering energy efficiency
Retrofit Roundtable
Nigel Turner
London Warm Zones/EDF Energy
Future of London Nigel Turner, Warm Zones Manager, EDF Energy Monday 10th June 2013
27
Final shape of ECO CERO - Carbon Saving; DECC estimated industry spend £760m pa • Solid wall insulation and hard to treat cavity walls CSCO - Carbon Saving Communities; DECC estimates £190m pa • Poorest areas, and includes social housing • Loft, cavity and other insulation measures • Rural sub-target HHCRO – Affordable Warmth; DECC estimates £350 pa = Focus today • Aims to address drivers of Fuel Poverty • Private Tenure only - to ensure focus on fuel poor • Heating and insulation - Boiler replacements, lofts and cavities • ESAS referral system to help identify households
. 28
ECO HHCRO - Challenges Vulnerable people in fuel poverty/HHCRO • do not advertise themselves • are often the hardest group to reach /access • often miss out on funding and services available Identifying & engaging the hard to reach . • Many people in London are in Fuel poverty, but due to cultural differences and barriers of language, may also be classified as ‘Hard to Reach Finding the sources of funding to pay for: • assessments, • energy efficiency measures, • income maximisation
29
EDF Energy Approach - Warm Zones
30
•
Area based - systematic door to door assessments conducted by multi lingual team
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Holistic programme delivery - integration of a mix of schemes and funding
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Delivery of energy efficiency measures (heating/insulation) - private homes
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Income maximisation – full benefit take up service; Link in Warm Homes Discount
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Trusted - One stop shop
EDF Energy Approach - Warm Zones Marketing & awareness raising Doorstep assessment Analysis – Measures offered Energy Advice Survey households for measures Measures installation Benefits referral/Income Max
Performance reporting & learning
31
London Warm Zones - Outputs
32
•
Over 57,000 homes in London received measures through the scheme
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Over 220,000 assessed/energy audits
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New and replacement space and water heating systems
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Insulation measures such as cavity wall, loft, draught proofing
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Over £10 million in new or additional welfare benefits
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Developed an effective model which - Works closely with key partners including Councils and Communities
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Received wide spread recognition from key stakeholders - National Government (Departments of Energy and Climate Change) - UK Regulator (OFGEM) - Social responsibility (Business in the Communities) - Regional Government Greater London Authority/RENEW scheme
ECO HHCRO – A Solution
33
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EDF Energy & LWZ establish ECO HHCRO Boiler replacement pilot
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Learn from LWZ experience installing heating in individual private sector homes, target audience for HHCRO - Over 11 years experience dealing with vulnerable customers (low income, elderly, young families) - Delivery of Energy Efficiency measures (Heating and insulation)
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First stage installation of 600 Boilers - learning's can be applied to delivery of current & future HHCRO - Further test hypotheses around LWZ & EDF Energy's modelling/research - Compare finding with DECC
•
Continue to build current and new partnerships including London Boroughs, Greater London Authority
•
Next steps – take key learning's from the pilot and roll out across other parts of London and other parts of the Country
London Warm Zone
Delivering energy efficiency
Retrofit Roundtable
Peter Feehan and Becca Aspinwall Pinsent Masons
Delivering energy efficiency
Retrofit Roundtable
Damian Hemmings LB Merton
Kevin Godding
Sustainable Merton
Future of London: EDF Retrofit Round-up
Merton Green Deal Pioneer Places Monday 10th June 2013 Damian Hemmings London Borough of Merton
Kevin Godding Sustainable Merton
Green Deal Pioneer Places
Merton £46k bid – as part of GLA led consortium bid Aims: • Increase local knowledge and awareness of the Green Deal • Create a portfolio of households willing to sign up to the Green Deal plans • Build a legacy for future Green Deal demand in the borough • Explore resident perceptions and barriers to Green Deal engagement
Partners: • Sustainable Merton (SM) • Merton Chamber of Commerce (MCC) • Climate Energy (CE)
Project Deliverables
Deliverables
Target
Promote the concept and opportunities available to Merton residents 600 under the Green Deal households
Engage and sign up 10% of households for free GD assessment potential ‘early adopters’
60 households
Support 30% of identified ‘early adopters’ through to installation stage after agreeing to a Green Deal plan
18 households
Deliver holistic behavioural change advice to engaged residents
-
Run a GD workshop to raise awareness amongst local businesses
25 businesses
20% of businesses to sign up to a free GD assessment with a view to entering into GD Plan by 31 March 2013
4 businesses
Highlight case studies / local exemplars of good practice (e.g. local business who has undertaken improvements to their premises)
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Results: uptake GD Assessments
Domestic
SME
Registered
65
4
Completed to date
<5
0
Results: perceptions of residents
How did you find out about the Green Deal?
Results: perceptions of residents
Which statement best reflects your views about the Green Deal?
What is the likelihood of you using the Green Deal?
Issues / Key Lessons
•Immature market • Delays in delivery of GD assessments •Adverse publicity – national media •Complexity of the Green Deal •Limited interest from non-domestic •Evaluation of project once complete •Explore role for LB Merton and partners in the Green Deal
Delivering energy efficiency
Retrofit Roundtable 10th June 2013