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Author Archives: Admin
London Housing and Community Heating Presentations
December 2012: Three talks focused on communal heating were presented at the recent National Housing Federation ‘London Development Conference. The series of ‘go on, go green’ slides – downloadable here – contain some useful information:
- Sam Hunt of BSSEC sets out some really clear slides on the design approach for heat mapping, as well as issues that need to be considered when implementing district heating and CHP. Worth a look.
- Robert Greene of a2dominion housing association states that they have a 6,000 home development pipeline over the next 5 years, of which 70% will use communal heating systems
- Results from an ongoing G15 – Communal Heating Research Project are also presented (G15 group – consists of London 15 largest Housing Associations) and highlight that there are currently 134 Schemes with Communal (Decentralised) heating. Much more very useful info is touched upon from the research, however the final results from this will not be published until April/May 2013. See the slides for the full information (slide 28 onwards).
Posted in Decentralised Energy, News
Tagged CHP, Community Heating, Decentralised Energy, Housing
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FAQs on ECO Brokerage
December 2012: Further to the ECO Brokerage consultation document issued earlier this week, DECC have now issued an ECO Brokerage FAQ briefing.
Survey of commercial property investors’ views on sustainability
December 2012: Interesting report from independent commercial property adviser GVA who have issued their latest annual survey of commercial property investors’ views on sustainability. Points to note from the report include:
- It is only five years to go before the EPC minimum energy performance standards kick-in (for both domestic and non-domestic properties). In accordance with The Energy Act 2011, by April 2018, it will become illegal to let residential or commercial properties that do not meet a minimum energy performance standard. The government have announced their intention to use an EPC rating of E as the minimum standard. This could have very significant implications for landlords and property investors alike with currently a fifth of commercial properties below this standard.
- This latest survey indicates an increased emphasis on the importance of sustainability in property, despite the significant economic challenges that remain. However it will still do little to convince industry critics that the current trajectory of improving property stock will meet Government deadlines.
- The survey shows a trend between 2007 and 2012 of investors placing increasing importance on sustainability factors within their acquisition and disposal decision making.
- The report also stated that only a third of survey respondents believe the current poor market conditions have caused a lessening of importance towards sustainability issues by investors.
Are EPCs a true indicator of energy efficiency?
December 2012: Jones Lang LaSalle with the Better Buildings Partnership have issued the output of some interesting work they have undertaken: “Using data gathered from over 200 buildings over the past four years, we’ve measured the actual energy performance of BBP members’ managed properties in London with surprising results…There is little or no correlation between EPC ratings and actual energy performance”. This is something often raised by EPC assessors, and so it is useful to get this comprehensive research confirming this view.
The report concludes that:
“If the commercial property industry is to succeed in achieving the Government’s ambition of cutting the associated CO2 emissions of the built environment, it is imperative for the industry, backed by Government direction, to focus on actual energy performance rather than just ‘design intent’. We have shown that there is little or no correlation between a building’s design (as measured by its Energy Performance Certificate) and its actual consumption.
The BBP members’ portfolios achieved a reduction in the associated CO2 emissions of 8% and made a saving of more than £4 million in energy bills, between 2009/2010 and 2011/2012. If the level of success achieved by BBP members were applied to the total existing office stock of Greater London, savings could be in the order of £70 million.”
Somewhat disappointingly, the publication of this research was very shortly followed by the following news report from the Government Minister overseeing this policy concerning extending the coverage of EPCs:
U-turn over compulsory energy assessments for commercial buildings
“Correspondence from building regulations minister Don Foster, confirms that plans for compulsory display energy certificates (DECs) for the private sector have been dropped. Instead, the commercial sector will be required to obtain less stringent energy performance certificates, which measure projected energy use. Display energy certificates, which measure a property’s actual energy performance, are already compulsory for public buildings.”
Mayor to encourage energy efficiency in the private rented sector
13 December 2012: The Mayor has today published a new ‘London Rental Standard’ where- the press release states – he “has called for the establishment of a new deal with landlords, letting agents and tenants based around a voluntary and transparent ‘London Rental Standard’ (LRS), which will be consulted on with the industry and launched next year by the GLA.”
Today’s publication, ‘The Mayor’s Housing Covenant: Making the private rented sector work for Londoners’, sets out the Mayor’s proposals for improving private renting for Londoners. Included in there are commitments that:
- The Mayor has three principal objectives for improving the private rented sector (PRS) in London which includes promoting standards through improving the energy efficiency of the stock.
- To do this the Mayor will work with government and energy providers to ensure that the Green Deal works for London’s PRS
- The Mayor has also committed (para 2.3) to address fuel poverty and encourage more landlords to take advantage of energy efficiency programmes.
The report goes on to say (page 33) that:
Improving energy efficiency
In terms of energy efficiency the PRS tends to perform well compared with other tenures but there is still significant room for improvement. In 2010/11, the average SAP rating for private rented homes in London was 57.3, worse than in social housing but better than in owner occupied properties and better than the national average for the PRS. The latter is probably explained by the larger share of flats in London’s PRS compared with elsewhere (flats are generally more efficient than houses).
From 2016, landlords will not be able to unreasonably refuse requests from their tenants for consent to undertake energy efficiency improvements where they can be funded by the Green Deal, and from 2018 all private rented properties must be brought up a minimum efficiency standard.” The latter requires all private rented properties (domestic and non-domestic) should be brought up to a minimum energy efficiency standard rating, likely to be set at EPC rating “E”. Further information on DECC’s website here.
Appendix 1 of the document contains the draft London Rental Standard and the energy commitment goes no further than the rather disappointing standards set by Government in the Energy Act 2011 stating that “landlords must work towards compliance with duties imposed upon them by the Energy Act 2011, especially related to requests for energy efficiency improvements by tenants and in relation to low ratings in energy performance.” The Mayor should instead look to bringing in the recommendations on PRS energy efficiency made by a coalition of organisations during the passage of the 2011 Energy Bill.
Any feedback on the contents of the Housing Covenant paper need to be sent to the GLA by 15 February 2013.
Local Authorities and RSLs will not be able to trade in new ECO brokerage
13 December 2012: DECC yesterday released their consultation on the ECO brokerage. Previous posts (here and here) have highlighted the potential of the brokerage to local authorities and community groups to further access the £1.3 billion annual funding directed through the Energy Company Obligation (ECO) to support the take up of energy efficiency measures. However, Government have taken the view that local authorities and RSLs will not be able to trade on the brokerage.
The ‘Guide to the ECO brokerage‘ sets out the Government’s case:
“Why can’t a Local Authority or Registered Social Landlord trade on brokerage?
The primary objective of brokerage has always been to stimulate the Green Deal market. Therefore in the very first instance we will look to restrict trading to domestic Green Deal Providers. However, over time we will look to open the platform to other sellers. We are committed to working with social landlords and local authorities to see how this can best be done.
Will energy companies be able to pick and choose which companies they buy from on brokerage? Could this disadvantage smaller Green Deal Providers?
ECO brokerage is a blind trading mechanism. Energy companies will not be able to see who they are buying from. Therefore, if a smaller Green Deal Provider can offer ECO at a competitive price they will be able to compete on the brokerage platform.
DECC will be monitoring ECO Brokerage trading activity for any evidence of uncompetitive behaviours from buyers and sellers.”
The ECO brokerage consultation adds that:
“53. …It should be noted that all Green Deal Providers, non-Green Deal Provider delivery agents, and Local Authorities and Housing Associations/Registered Providers of Social Housing can all still access ECO directly via a direct bilateral partnership with ECO obligated energy companies, although we recognise the challenges involved in this for some providers.”
The consultation makes sets out that there was a clear majority in favour for establishing a brokerage, and hence the Government will put a brokerage mechanism in place on “a voluntary basis while it carries out this consultation asking for views, and any supporting evidence, on the need to regulate energy companies to use the brokerage service.”
The Brokerage will operate as fortnightly anonymous auction where ECO providers will be able to sell “lots” of ECO Carbon Saving Obligation, ECO Carbon Saving Communities and ECO Affordable Warmth, to energy companies in return for ECO subsidy. The auction process will be delivered by the Government Procurement Service through an e-auction online platform that allows energy companies to bid in real-time between 9am and 5pm on each auction day. Dates of first auctions are as follows:
18 December – first full test auction
15 January – first full live auction
Auctions will then take place fortnightly after that
An ECO brokerage Impact Assessment is also available to download.
Bunhill Energy Centre Video
December 2012: Islington has posted a really entertaining video on Youtube describing some of the background to the development of the Bunhill CHP Scheme, as well as the benefits being delivered to the local community through the provision of lower carbon, affordable, heat and power. The project has taken close to 10 years to come to fruition, and the district heat scheme extends across Finsbury Leisure Centre, Ironmonger Row Baths, and Stafford Cripps, St Lukes and Redbrick Housing Estates. Do watch if you get a chance!
Energy buying plan to unlock investment for growth
December 2012: Interesting press release from the Cabinet Office stating that Government will use its considerable buying power to contract PPAs (power purchase agreements) directly with stalled renewable electricity projects.
“The Government Procurement Service (GPS), part of the Cabinet Office Efficiency and Reform Group, is the UK’s largest energy customer, spending £1.5bn a year on gas and electricity. GPS buys energy for 75% of the entire public sector which accounts for 3% of total UK energy demand. In the New Year it will open a pilot to diversify 2% of its demand, worth £25m a year.
For the first time ever, contracts will be offered direct to renewable generators for a set proportion of their capacity for up to 25 years. This will appeal to new projects which can bank on the guaranteed business to attract investment. We are aware of at least 150 projects which are currently stalled and may need finance. A small 10MW generator is estimated to return £5m a year to the local economy as well as creating jobs in the energy and construction industries. This pilot is for non-intermittent power such as biomass and energy from waste.”
The ECO-Brokerage part 2
December 2012: No information as yet from DECC on when further details on the ECO brokerage will be released (see earlier post – The ECO brokerage – on this). There has however been a little information on the brokerage from a couple of sources which are worth mentioning:
- An Inside Housing story stating that “The vast majority of social landlords will be excluded from the first sustainability auction for energy company obligation funding to improve the energy efficiency of homes.”
- And a recent consultation by Ofgem on the ECO mentions that the regulator will have “no role in administering the ECO Brokerage and this Guidance does not address the brokerage or its administrative requirements. However we recognise that, on occasion, suppliers may seek credit for measures obtained through this platform. In order for such measures to be considered eligible under ECO, their installation, reporting and notification (etc) should be demonstrably compliant with the Order and this Guidance. For further information on the ECO Brokerage Mechanism please contact ECObrokerage@decc.gsi.gov.uk.”
DECC held an ECO brokerage workshop with PWC yesterday – where the software for the ‘ebay’ style online auction platform was trialled. Hopefully some further information will be released shortly…
The Electric City
December 2012: Following last week’s LSE Cities ‘Electric City’ conference which took place at the fascinating ‘Former Shoreditch Electricity Generating Station & Refuse Destructor’ some material have been posted online.
- A series of essays on the theme Electric City have been brought together in a publication for the conference which can be downloaded here. There’s not much specifically on London’s energy challenges, but the Global Problems: City Solutions contribution highlights an interesting point suggesting that “According to some reports, urban regions already produce ten times more renewable technologies patents than rural regions.”
- A selection of video interviews from the conference are posted on Youtube
- And the Guardian has posted a series of ‘exclusive data visualisations’ from the conference which includes ‘Unpacking London: energy & pollution’ highlighting that “Three quarters of London’s energy consumption is fueled directly by oil and gas, with the vast majority of the remainder generated by fossil-fuel-powered electricity. Just 2.1% comes either direct from waste and renewables or from renewably-generated electricity.”
London installations removed from EUETS
6 December 2012: Ahead of the start of Phase III of the EU Emissions Trading Scheme (EUETS), which starts on 1 January 2013, DECC has today introduced new legislation which looks to simplify the rules around the CO2 ‘cap and trade’ scheme.
The EUETS covers around 1,100 energy-intensive industrial installations in the UK such as power stations, refineries and large manufacturing plants. Not surprisingly, not many of these participants are located at London, however, there are a few at the very lowest end of the EUETS requirements, and it is these sites which are addressed in the changes made today. DECC’s press release states that these ‘small emitters’, many of which are hospitals, have been given the opportunity to “‘opt-out’ of the EU ETS from 2013 into a lighter touch alternative scheme, which will address the disproportionately higher administrative costs faced by these installations.”
The ‘opt out’ list includes the following schemes in London:
- Bloomsbury Heat & Power
- The Natural History Museum Boilerhouse
- St. Thomas’ Hospital
- Guys Hospital
- Great Ormond Street Hospital for Children NHS Trust
- Chelsea and Westminister Hospital
- Royal Free Hospital Hampstead
- St Georges Healthcare NHS Trust
- Pimlico District Heating Undertaking (PDHU) Pump House
Other sites include the Hammersmith Hospital Energy Centre and the University College London Hospital.
Common to many of these installations is that they had chosen to utilise Combined Heat and Power (CHP) systems to provide greater energy resilience on site, access more affordable heat and power, and reduce the site’s overall environmental impact related to energy consumption. However, by choosing to install more energy efficient generation directly on site, rather than importing electricity from the grid, they also passed the threshold on energy consumption for inclusion under the EUETS rules (20MW thermal input). This brought these relatively modest generation sites under the complex EUETS rules, hence, this new action by Government to simplify the rules under their operation under the trading scheme is to be welcomed.
Posted in Decentralised Energy, News
Tagged Carbon Emissions, CHP, Community Heating, Decentralised Energy, Hospitals
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Islington’s new energy centre brings power to the people
December 2012: Islington have officially inaugurated their council-owned CHP system which “will produce cheaper, greener heat for hundreds of residents in the south of Islington in competition to the big utility companies.”
The press release sets out that the Bunhill Energy Centre houses a 2 MWe gas-fired Combined Heat and Power (CHP) engine which is connected to a kilometre of new district heating network taking hot water to more than 700 local homes on the Stafford Cripps, Redbrick and St Luke’s estates, as well as the newly reopened Ironmonger Row Baths, and Finsbury Leisure Centre.
The efficiency of the new system is further improved by an on-site 115 metre-cubed thermal store (the tall cylinder seen above).
The energy centre was specially designed to minimise noise and adopted a “plug and play” method of construction with all the major components manufactured and prefabricated off-site in order to reduce disruption to residents.
The energy centre and heat network will be fully owned and managed by the council, and was funded by grants from the London Development Agency and the Homes and Community Agency. The council ownership and management of the scheme will help to maximise the benefits of the scheme for the local community and energy bill savings for residents. For more about the Bunhill Energy Centre and heat network see www.islington.gov.uk/heatnetwork
The Bunhill Energy Centre is part of Islington Council’s Decentralised Energy Programme and marks a return to energy production for Islington Council – for more than 70 years – from 1896-1969 – the borough had its own coal-powered station in Eden Grove, Holloway (more of which on this nice flickr post).
The launch event was covered by the BBC, and also local newspapers the Islington Tribune and the Islington Gazette.