Tag Archives: Green Deal

Mayor’s Briefing Note on the Green Deal

July 2012: During last week’s Parliamentary debate on the four key Green Deal statutory instruments (SIs), Labour Shadow Energy Minister Luciana Berger MP mentioned the following:

“…I was surprised on Friday to receive an e-mail which began:

“Dear Luciana,  In advance of Monday’s Committee scrutiny of the Green Deal statutory instruments, I thought it may be helpful to send a very short briefing note from the Mayor of London.”
Once I had checked that it was not a joke—if anyone wants to see it, I have it here—I was delighted to find a neat little document setting out exactly what is lacking in the Minister’s current proposals and how they could be made much better.  I must ask the Minster, is it now Conservative policy to brief the Opposition on the weaknesses of their policies?” [Column 12/13 of debate]

The briefing provided by the Mayor’s office to Ms Berger can be downloaded here. It highlights the Mayor’s concerns that:

  • “The capital has by far the highest number of needy properties of any region, but there is a real danger that these properties could be sidelined by Green Deal providers as a result of the current framework being proposed by Government.
  • …there is a pressing need for an area allocation for the Energy Company Obligation (ECO). Without such a target there is a real danger that London will miss out on the attention it needs, as energy companies and Green Deal providers focus on treating areas that are cheaper and easier to retrofit.
  • …without an area allocation to ensure that flats and mid-terraces – key markets in London for the Green Deal – are able to access ECO subsidies, there is a serious threat that these homes will miss out on the benefits of the scheme.
  • Londoners could end up paying an additional £390m on their energy bills to fundthe Green Deal nationally, while the capital receives investment of only £156m in return –an unacceptable possibility given London’s specific needs.
  • Only 1/3 of the suppliers for London’s unique RE:NEW scheme, which provides energy efficiency measures to needy London homes, have expressed interest in becoming Green Deal providers so far, and it is extremely important for the success of thescheme that more providers are encouraged to get involved in the capital.”

The issue of establishing a regional target for London – or area allocation as mentioned in the Mayor’s briefing note – has previously been considered – and rejected – by Government in the Green Deal consultation document from November 2011.  A section titled ‘Regional Distribution’ in the consultation [p132/133] stated:

“Concerns have also been raised that rural areas and inner cities have not been seen an equal, proportional level of delivery of energy efficiency measures under CERT – and that this perceived pattern might be borne out in the ECO without additional constraints being put in place.

“…There is some variation between regions, for example, 9.9% of homes in North East England but only 2.7% of homes in London received measures under CERT during the period of the analysis. However, it is very difficult to isolate the cause of any under delivery in specific areas as a number of factors are at play, including: previous activity; LA and other potential partner activity or resource; prevalence of different property types (flats, solid wall, etc); expense of activity (could economies of scale be generated); distance from installers; etc.

“…In view of the evidence from CERT, and consideration of the shift of focus that the ECO would entail, DECC does not see a case for introducing further constraints to delivery in geographical terms. There might be a case for reconsidering this position at a review point, when there would be evidence on the patterns of geographical distribution of measures from the new obligations. DECC would welcome further evidence on this issue during consultation.”

Consequently, the Government’s recent response to the consultation makes no comment on specific regional provisions at all.

The Mayor’s briefing note suggested that “Provision for area allocations could be delivered through secondary legislation or within the ECO brokerage document, which will set out how Green Deal providers can access ECO funding.” The Green Deal SIs were however ‘Affirmative instruments’ which means in Parliamentary language that Parliament could accept or reject the SIs but could not amend them. Government decisions on the ECO brokerage have however not been finalised as yet, and a further consultation on a model for this is to be held by DECC over the summer.

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‘Plans for London green deal model’

July 2012: Inside Housing exclusively reports that the Mayor has “instructed the Greater London Authority to explore creating a pan-London green deal procurement framework and promotion and referrals organisation which councils could use to deliver energy saving measures across their housing stock.  The GLA aims to retrofit 2.4 million homes in London by 2020 at a potential cost of £10 billion…

Richard Blakeway, London deputy mayor for housing, land and property, said: ‘The mayor has tasked City Hall officers to scope out a range of proposals for how we can make the government’s green deal work best for the capital.
‘No final approach has been decided, but we want to maximise the value of the green deal for Londoners by presenting the most powerful case for funds and to reverse the historic poor uptake of predecessor schemes in London, such as the carbon emissions reductions target.” Read the full story here. More on the Mayor’s RE:NEW programme here.

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Additional support for RE:NEW

June 2012: The Mayor has released information highlighting that he is procuring additional consultancy support from the Energy Saving Trust (EST) for the delivery of his home energy efficiency retrofit schemes, RE:NEW.

The Mayoral approval form states that:

“Between April 2009 and the end of  March 2012 64,000 homes have been retrofitted, 17,543 tonnes CO2 per annum will have been saved and £7.3 million additional funding levered in. The budget for this programme was £7.8 million. Approval has recently been received to continue this work (with £3.3 million allocated in the GLA budget) in 2012-13. This would see RE:NEW delivery continue while funding remains to be levered in. In addition to this, it would start building up a pipeline of Green Deal assessments.

The approval highlights the shortfall in funding to London from the main national energy efficiency programme, the Carbon Emissions Reduction Target (CERT):

“The fundamental barriers to greater retrofitting activity in London are the inherent costs of retrofitting and the number of hard to treat properties in London. This makes it difficult to attract London’s fair-share of activity through the current national delivery model (CERT), let alone the level of activity needed to meet the 60% carbon reduction target by 2025. The latest data, 2009-2011, highlights how little activity London receives compared to other regions (see table below). As London represents 12.8 per cent of the UK population London lost out on an estimated £100 million in energy efficiency funding over the period.”

Cavity Wall Insulation Loft Insulation Number of homes treated Percentage of homes treated
London 54,533 89,957 131,952 4.2%
England, Scotland and Wales 1,372,307 1,727,392 2,615,980 10.0%
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New Climate Local Initiative Launched

28 June 2012Waltham Forest, Islington, Camden and Sutton are amongst the first 18 local authorities to sign up to a new ‘Climate Local Commitment’ launched today at the Local Government Association’s (LGA) annual conference.  Climate Local “will see councils committing to their own local actions to reduce carbon emissions and improve their ability to protect people and services from the anticipated changes in the weather.”

Climate Local will build on the Nottingham Declaration, launched in 2000, and the LGA news release states that “As part of the new scheme, local authorities will be sharing ideas and advice on the best ways to save money on their gas and electricity use and ensure there are preparations in place for keeping to a minimum disruption caused by extreme weather like snow, floods and heat waves.”

Further details are posted on the Climate Local webpage which includes the Climate Local Commitment form and also a  Climate Local Information Pack for local authorities.

Ed Davey, the Secretary of State for Energy, spoke at the conference stating that “…the role of councils in energy and climate change policy is much, much greater than even the LGA may currently think…I want to set out three strategic roles for local authorities in energy and climate change. First, in buying energy. Second, in saving energy. Third, in generating energy.”

On the Green Deal, Mr Davey said:Local authorities and communities, who have the trust and faith of local people, will be essential partners in delivering the Green Deal.
Local authorities are leading work on financing models and joining together to create community interest companies. Six are involved in the Green Deal Finance Company.
Some are taking huge leaps forward – like Birmingham, which is pushing ahead with a £1.5 billion Energy Savers scheme, or Newcastle, which is leading a Green Deal partnership scheme which spans the North East. The GLA is bringing together the London boroughs.

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Camden Green Deal Questionnaire

June 2012: Camden have issued a questionnaire to canvas residents opinions about the forthcoming  Green Deal to help decide whether this scheme would work in Camden and if the Council should lead on delivery of the Green Deal in the borough.

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Hackney Green Deal Project

June 2012: Acrola Energy are  leading a training and employment project linked to the start of the Green Deal later this year to:

  • Provide free training for trades people in Hackney on the requirements for work under this new scheme.
  • Provide trades people with the opportunity to meet architects, suppliers and main contractors in order to win new business.
  • Bring together Hackney trades people with the people living in the area who are interested in having building work done through Green Deal or otherwise.

Further information at www.acrolaenergy.com

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External Insulation for London Semis

June 2012: South Kenton and Preston Park Residents Association (SKPPRA) recently obtained a grant from the Local Energy Assessment Fund (LEAF) to externally insulate a pair of semi-detached houses on the estate to show residents how this will make the houses warmer and easier to heat. Under the ‘warmhouse’ project two houses in Wembley were clad in external wall insulation and a series of detailed reports of the project have been published and are available to download from the ‘warmhouse’ website, which will provide some valuable learning for the roll out of the Green Deal in London.

Some points of interest:

  • Detailed photographic records of the retrofit are posted in the first document, setting out the level of work undertaken to externally insulate these two homes.
  • The second report provides a useful ‘scope of works’ document, which sets out the requirements of the insulation project to the contractor – a helpful template to any other similar project being considered.
  • The fourth report highlights that, via a survey of local residents applying for to have their homes insulated, annual gas bills are shown to range from just over £400 to just under £1400 (presumably down to occupation levels rather than energy efficiency levels of the various homes?) with the majority of gas bills between £850 to £1100.
  • The average annual gas consumption across residents submitting information is 21,500kWh of gas (hot water and space heating)
  • Actual energy consumption modelling over the year hasn’t been undertaken(the project timeline most didn’t allow for this) and page 33 of this fourth report sets out a modelled indicative spread of space heating (only) consumption over the year
  • Page 34 of the report then provides an indicative idea of how space heating consumption will be reduced as a result of the using external insulating walls, suggesting a >50% reduction in energy use in the home
  • However, the FAQs set out however that “Utility bills and monthly gas readings will be required after the work is done so that the effect of the insulation on your energy consumption is recorded. As part of the preparation work a forecast will be made of the effect of the insulation on your heating energy consumption and the monthly gas readings will help to assess the accuracy of the forecast computer model.”
  • Unfortunately,  the project will not undertake a full fabric approach, the FAQs saying  “No your windows will not be replaced – the grant is for the external insulation only”, but it’s possible the homes were already double-glazed…? However, it’s not immediately clear if this is the case with the two homes insulated
  • Both external (and internal) wall insulation – and also replacement glazing (see Annex 1 of the Government’s recent response to the Green Deal and ECO consultation on the full list of qualifying measures) – will be subsidised under the forthcoming £1.3 bn a year Energy Company Obligation (ECO) scheme, which starts in October 2012
  • It will be interesting to see how the houses perform in their new insulated state, and hence post-occupancy evaluation reports from the project will be of great value.
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Update on RE:NEW

20 June 2012: A quick update on progress under the Mayor’s home energy efficiency retrofit programme, RE:NEW:

  • The Mayor recently reported that the 67,568 homes have been treated under the RE:NEW programme to date.
  • The overall ambition for RE:NEW is set out in Policy 6 of the Mayor’s Climate Change Mitigation and Energy Strategy which states that “The Mayor will work with partners to use public funds to develop commercial models that catalyse markets to offer appropriate whole-house retrofitting of energy efficiency, energy supply, and water efficiency measures to 1.2 million existing homes in London by 2015, and all homes in London by 2030.” DECC has recently pointed out in its latest Green Deal projections paper, that this number  “is equivalent to 100% of the total number of homes expected to be retro fitted in the national Green Deal”
  • The Climate Change Mitigation and Energy Strategy also states that “The Mayor’s ambition is for energy and water efficiency measures to be installed in 200,000 homes by the end of 2012 across London’s energy efficiency programmes.” [p128]
  • In August 2011, the Mayor set an  interim 55,000 homes target to be delivered under RE:NEW by March 2012, which was achieved ahead of the May 2012 election
  • In February 2012, the Mayor’s then environment advisor Kulveer Ranger outlined to the London Assembly’s Environment Committee the Mayor’s longer term ambitions for RE:NEW and that achieving the 200,000 homes “was always subject to the Green Deal helping to make that happen” and that the “figure , going forward, is subject to what happens with the Green Deal. We know the Green Deal timetable is slipping somewhat and it is not where we originally thought it was going to come in so we have to look at that figure and see what we can do. I am in discussion with Government right now, with the Department of Energy and Climate Change (DECC), with Ministers there, to say, ‚What do we do to ensure that we can continue more homes being retrofitted while we wait for the Green Deal to come along”
  • The Mayor’s manifesto in the run-up to the May 2012 election introduced a new pledge, stating “By the end of March, 55,000 homes had been helped I will continue this drive by extending the programme to retrofit a further 20,000 homes through RE:NEW, with a further £3 million from the GLA budget. I will prioritise households over the age of 60 for the scheme” which appears to suggest that 20,000 more households – over the 55,000 interim target – will be retrofitted through the GLA RE:NEW programme – but no mention is made of the 200,000 original target.
  • Building magazine reported only last week that “London mayor fails to secure funding for retrofit plans” stating that the Mayor lacks funding for 86% of the energy efficiency retrofit work on London’s housing stock that he planned to deliver this year, after failing to secure financial backing from the government. As part of his election campaign, the mayor pledged to complete 20,000 retrofits of London homes this year under his RE:NEW energy-efficiency programme. But he said this would rise to 145,000 if he secured central government funding for the scheme. But the Department of Energy and Climate Change has now confirmed that while “informal discussions” took place, no funding was agreed.Read the full article here [subscribers to Building only].
  • The Mayor has announced recently that he is undertaking a formal evaluation of RE:NEW which will include full details of the programme and that these will be published in July, and the same time that Phase II of RE:NEW begins
  • The programme spend for RE:NEW to date has been £7.8m
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Planning and the Green Deal

June 2012: Thinktank Future of London has added a further helpful contribution to the issue of introducing the Green Deal in London, with a short paper, building on their recent report ‘Delivering Energy Efficiency in London, highlghting how planning will have a role to the success of the Green Deal.

A number of interesting points are raised including:

  • There are around 600,000 homes in conservation areas in London, roughly half the national total (reference cited in paper here)- which will potentially be a  significant issue for the mass role out of Solid Wall Insulation (SWI) – a key technology promoted by the forthcoming Green Deal and te £1.3 bn Energy Company Obligation (ECO)…
  • …and around 60 per cent of all homes in the capital are solid wall

Download the paper ‘The Green Deal in London: Planning Q+A

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London and the Green Deal

June 2012: The Green Deal Impact Assessment, launched earlier this week, highlighted how London is proposing to be a key player in the ‘New Green Deal Market’ under the Mayor’s plans for the RE:NEW home retrofit programme:

“The Greater London Authority’s (GLA) ‘Delivering London’s Energy Future’ strategy states its intention to retrofit 1.2m homes in the Greater London area by 2015 (this is equivalent to 100% of the total number of homes expected to be retro fitted in the national Green Deal). The GLA intends to do this by working with all the London boroughs to build on the success of RE:NEW, its refurbishment programme, that has retrofitted 11,000 homes to date. The GLA is working to integrate RE:NEW with new energy efficiency and energy supply funding streams, such as the Green Deal and the Feed-in Tariff, so retrofitting can be offered to all London homes by 2030.” [page 49]

Download DECC’s ‘Final Stage Impact Assessment for the Green Deal and Energy Company Obligation’ here.

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Solid Wall Insulation Project in East London

June 2012: London has a high incidence of solid wall homes and as such has been poorly served by existing national energy efficiency schemes, which – with the exception of the troubled CESP programme – have not included support to solid wall insulation (SWI). The forthcoming Green Deal and Energy Company Obligationscheduled to start in October of this year – are to change that, with the Government very strongly focusing on a significant uptake in SWI. Such projects are not without their difficulties – being much more complex to install and fairly invasive when insulation is fitted on the inside wall of solid wall homes (Internal Wall Insulation – IWI), hence, there is much to learn from projects currently underway. An External Wall Insulation (EWI) project has recently been completed on the Coventry Cross estate in Poplar, Tower Hamlets with the “energy efficient retrofit  expected to cut residents’ energy costs by as much as 25% while achieving greater comfort.” Further information is provided on the following news release. Further information can be found here.

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London Low Carbon Buildings: video case studies

May 2012: Regeneration and construction experts Wilmott Dixon have posted videos on Youtube of two developments that they have been working on in London with a specific brief to reduce energy and carbon emissions. These are:

Retrofit Case Study of a London Victorian Property – a good example of the type of activity that will need to go ahead under the Green Deal in London, with extensive use of IWI (internal wall insulation) resulting in a reduction of 50% in the energy baseline of the dwelling.

Building the zero carbon ‘in use’ Crouch Hill Community Park, Islington – An update on the Crouch Hill Community Park project, developed with Islington Borough Council, which is to be the UK’s first zero carbon ‘in use’ school with a community energy centre that will also provide heat to an adjacent housing estate.

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