CIH London Housing Summit Improving Home Energy Efficiency ... folder/London... · CIH London...
44
CIH London Housing Summit Improving Home Energy Efficiency – RE:NEW 6 October 2016
Transcript of CIH London Housing Summit Improving Home Energy Efficiency ... folder/London... · CIH London...
CIH London Housing Summit
Improving Home Energy Efficiency – RE:NEW
6 October 2016
Agenda
1. RE:NEW Overview – Kore Mason, Programme Lead, GLA
2. Positive Energy, The Business Case for Retrofit – Keith Von Tersch, Engagement Manager, Capita
3. The London Energy Efficiency Fund – Alex Gilbert, Investment Manager, Amber Infrastructure
4. Q&A
Mayor of London’s commitment
60% reduction in
emissions* 20% reduction in
emissions*
20% increase in
renewables
20% cut in
energy
80% reduction in
emissions*
2016 2020 2025 2050
EU 20-20-20
Target London Climate
Change Target
UK Climate
Change Act
2008
Mayoral ambition
for London to be
zero carbon city
* below 1990 levels
UNFCCC Paris
Agreement
Goal of < 2
degrees
temperature
increase
Aim to limit the
increase to 1.5°C
Emissions to peak
as soon as
possible
Rapid reductions
thereafter
Carbon emissions in London: the facts
How RE:NEW helps
120,000 HOMES IMPROVED
40,300 tCO2 SAVED
£8.0m FUEL BILL SAVINGS
A time of change
The expert RE:NEW Support Team
Tom Vosper George Simms Jamie Abbott Karen Klomp Keith Von Tersch
Lisa Pasquale Chris Newman Richard Beevers Peter Rickaby Matt Cotton
Energy management and
district heating networks
expert
Retrofit and energy
management expert
Solar PV expert
Energy management, fuel
poverty and district
heating networks expert
ECO funding, energy
management and
procurement expert
Technical risks expert
Programme optimization
and planning applications
expert
Marketing and engagement
expert
Technical risks expert
Design and engineering
of sustainable buildings
expert
RE:NEW Support Team services
Croydon Council
£42m of energy efficiency measures over the next
15 years.
Aim: Improve the energy efficiency of the housing
stock delivering enhanced comfort and lower fuel
bills for tenants
RE:NEW provided:
comprehensive stock analysis to understand existing
property performance and inform design.
procurement support to an OJEU process
Family Mosaic
230 EWI planning submissions to provide residents
with affordable warmth and help to transform
communities
Aim: Overcome some of the challenges they have
faced in delivering retrofit initiatives across their
housing stock in London.
RE:NEW provided support with:
Provided planning advice and set up meetings with
multiple planning authorities
Reviewed procurement specification
Moat
EWI pilot of 30 properties in preparation to retrofit up to
800 properties across the Pollards Hill Estate
New roofs
Re-painting
Wall repair and other landscape improvements
Aim: improve the physical condition and appearance of
the buildings to facilitate a positive change in the
perception of the area.
RE:NEW provided:
Technical risk assessment
Project scoping and developing a ventilation strategy
Innovation Unit
RE:NEW Framework of suppliers
Project
design
Post-implementation
(savings delivery / monitoring)
Marketing
and
engagement
Implementation
Purpose built Wide scope
Managed framework Pre-agreed terms
Supported Organisations and Framework Suppliers
Supported Organisations Framework Suppliers
RE:NEW is supporting 63 organisations including:
Positive Energy – The Business Case for Retrofit
1. Overview
2. How are fuel poverty and poor energy performance thought
to contribute to higher housing management costs?
3. The approach
4. How can improving energy performance to EPC band C
reduce housing management costs?
5. Building the business case – a case study
Overview
44% decrease in retrofit
Budget pressures
Benefit to the organisation?
How are fuel poverty and poor energy performance thought to contribute to
higher housing management costs?
What are we trying to achieve?
Orbit target = minimum EPC band C by 2030 – in line with Government
Retrofit should be about achieving the homes we want:
Affordable, comfortable, healthy – homes that work well for people
Low management costs – homes that work for housing providers
Value for money?
All variables analysed
The approach
Initial analysis – cost areas and energy
performance linked
Not conclusive
Couldn’t express relationship in money saved
Needed more sophisticated analysis
The approach
Consider a wide range of variables
Employ established analytical techniques
Use segmentation analysis to prioritise
Statistics Machine Learning
ANCOVA Decision trees
How can improving energy performance to EPC band C reduce
housing management costs?
How can improving energy performance to EPC band C reduce
housing management costs?
£4m savings
How can improving energy performance to EPC band C reduce
housing management costs?
Repairs
20 year savings of £3.84 million
EPC band D – 18% more damp and mould
growth repairs
EPC bands E, F and G – 48% more
How can improving energy performance to EPC band C reduce
housing management costs?
Customer contacts
Reduce contacts by 75,300 over 20 years.
Repairs and energy-related contacts
significantly higher
EPC bands D or below
High fuel poverty risk factor
Repairs for damp, mould growth or
condensation.
How can improving energy performance to EPC band C reduce
housing management costs?
Rent arrears
Initial analysis showed opposite correlation
Wrong data? Terrible assessors? Bad tenants?
Tenants in arrears much more likely to contact about energy efficiency
High fuel poverty risk factor more likely to be in arrears
Segmentation revealed a different story for some tenants
Under 35
Renting for less than two years
In EPC band D or below
How can improving energy performance to EPC band C reduce
housing management costs?
Customer complaints – nearly 3,000
additional
Voids – 600 extra voids
Building the business case
1. Savings from housing management costs
2. ECO funding
3. Planned programmes
4. Other funding sources
Case study: 3-bed terraced house
3-bed terraced house
Built in the 1920s
RdSAP score of 60 – EPC band D
Cavity walls are already insulated
14 year-old boiler
What does it
need to improve to band C?
1. Loft insulation top-up
2. Draught proofing
3. Replacement boiler and up
to date controls
4. 2 kWp solar PV
system, costing
Total cost: £4,100
Building the business case – a case study
Building the business case – a case study
Building the business case – a case study
Building the business case – a case study
Priority groups
Group 1: Highest costs
Number of homes: 100
- EPC band D or below
- Above average costs
- In arrears
- Damp and mould growth repairs
22% of costs saved
Group 2: Damp properties
Number of homes: 1,788
- EPC band D or below
- Damp and mould growth repairs
18% of costs saved
Group 3: Top savers
Number of homes: 200
- Top 200 properties for cost savings
40% of costs saved
Implications
Savings found across multiple areas
Can target interventions better – make budgets go further
Even greater savings available – only the tip of the iceberg
Need to develop a whole house plan for retrofit and maintenance –
deliver quality, comfortable homes
Need to look at the tenant and the building to solve problems –
individual repairs for damp are not solving the problem
Next steps
Develop a programme of works – focus on properties with greatest
savings potential (~2,253)
Technical risks – ensure good quality retrofit and ventilation
provision to protect investment
Procurement – could go through the RE:NEW framework
Monitoring and review – track savings that occur to bolster analysis
CIH London Summit
06 October 2016
Alex Gilbert – Amber Infrastructure Ltd
An Introduction
• LEEF is a £112m Fund, sourced from the Mayor’s London Green Fund and the private sector;
to be lent to public or private sector borrowers on projects that promote energy efficiency
• We will work with building owners, developers, ESCOs and other project promoters
• LEEF can also support larger projects such as Combined Heat and Power, District Heating
and Renewable Energy Generation
• Loans are extremely flexible and competitive; with tenors of up to 10 years and interest rates
from 1.70% per annum
Social Landlords can benefit from LEEF if …
• You are undertaking a refurbishment programme / retrofit project in London-located social
housing, whether external or internal (communal or within the property)
• Your works contribute to improved energy efficiency through reducing consumption and/or
carbon emissions
• Your funding requirement is between £1m and £20m
• You may be working with RE:NEW
LEEF Investment Criteria
£4.6m – London Borough of
Hackney
Installation of a communal heating system
in ten social housing blocks, providing
significant fuel poverty alleviation
Procured via the GLA’s RE:NEW framework
Provision of energy to 1,500 social housing
tenants; average energy bill reduced by 56%
(£980)
Potential 40% CO2 savings due to fuel
switch
Private sector finance, in the form of
Npower ECO grant; for domestic works
LBH benefits from lower maintenance costs
and O&M contract with ESCO
Case Studies – LEEF: THE FUEL SWITCH
Contact Info
Contact Name Role Email Phone
Alex Gilbert Relationship /
Technical
[email protected] 020 7939 7106
Peter Radford Finance [email protected] 020 7939 0591
Joanne Patrick Legal [email protected] 020 7939 7103
Leo Bedford Director [email protected] 020 7939 0550
For further background / general information:
www.leef.co.uk
www.ambergreenspruce.co.uk
www.amberinfrastructure.com
For project / funding specific information:
How did we do it?
Fuel poverty risk factor
BEIS statistics on household and
property data
Segmentation revealed that households at
higher risk of fuel poverty had higher:
Contacts relating to energy efficiency
and repairs
Repairs-related complaints
Repairs relating to damp, mould growth
and condensation
Rent arrears
Touching the Voids – Sustainable Homes
Correlation between poor energy
efficiency and voids, rent arrears and
responsive repairs
Responsive repairs in one housing
association
– £90 savings for every 10 SAP points
