ENERGY
CHANGING ENERGY: DELIVERING THE LOW CARBON HOMES AGENDA
C
limate change is one the biggest challenges we face today and, as Government policy attempts to cut the UK’s carbon emissions as far
and as fast as possible, the challenge facilities managers face in meeting future commitments to renewable energy generation must not be underestimated. While the biggest challenge is how we lower carbon emissions in existing buildings, it is essential that new homes and buildings are as energy efficient as possible and able to meet goals. According to the UK Green Building Council the way in which we construct and use our homes and other buildings in the UK accounts for approximately 45 per cent of total emissions. Therefore it is not surprising that the Government has set an ambitious environmental policy – for all new homes to be zero carbon by 2016 – and under the EU Commitment, the UK must deliver 15 per cent of its total energy supply from renewable sources by 2020. The stepwise approach to zero carbon – set out in government policy, through the introduction of building regulations in 2010, 2013 and with a final leap to zero carbon in 2016 – provides clarity about the future direction of regulations. Despite zero carbon still not being fully defined, we do know that we need to change the way we think about energy through community scale and microgeneration solutions. Without an extensive knowledge of how to achieve energy efficiency, it is vital for facilities managers, local planning authorities and developers to collaborate with energy suppliers and tap into their energy expertise in order to maximise carbon reduction.
One effective way of doing this is by making use of an Energy Services Company structure, widely known as an ESCo. ESCos are essentially contractual vehicles created to devise and implement long term energy provision for a business or organisation, such as an energy centre. They do this by developing, installing and arranging the financing for projects designed to improve energy efficiency and cut maintenance costs over a seven to twenty year period.
ESCos will be particularly useful in helping reach the Government’s target of zero carbon homes because they deliver
48| SUSTAINABLE FM | AUGUST 2010
Richard Scott from E.ON looks at ESCos and their role in a low carbon future
cost-effective ways of reducing carbon emissions and are involved in every aspect of the project including planning, implementation, installation and maintenance of new builds, as well as monitoring the savings that have been achieved. ESCos go further than simply providing advice and consultancy to residents and can engage with communities on an ongoing basis to ensure targets are met through their numerous roles. The long-term nature of the
performance-based projects that ESCos deliver tends to include the maintenance of the new equipment that has been installed. The cost of the ongoing maintenance comes under the overall cost of the project and customers therefore benefit from reduced maintenance costs as well as reduced energy costs. The ESCo also maintains a constant operational role during the period of the contract, measuring and verifying the energy savings. This will have many facilities managers breathing a sigh of relief, as many will attest to the fact that energy savings can be some of the hardest to track and measure.
The fact that ESCos pay for themselves through the savings achieved will also be seen as a benefit by many organisations, especially since the introduction of the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme that came into force on 1 April 2010. The CRC is designed to deliver carbon dioxide (CO2
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emission reductions, primarily from large non-energy intensive organisations across the public and private sector and employs financial penalties and rewards depending on actual reduction, making failure to cut emissions particularly costly. In response to the increased demand for ESCos and recognising the market need in the wake of the CRC coming into force, E.ON’s Sustainable Energy business has a team of carbon
consultants ready to support facilities managers and their organisations to manage and mitigate the costs that will flow from this new regulation. Of course the first step is to measure the carbon footprint of the building or buildings in question and analyse the CRC liability, taking into account a number of complex factors. Our Carbon Consultants have experience in quickly and cost effectively doing that, and then moving on to the energy and carbon reduction strategy.
The selection of the most appropriate renewable and low energy technologies for client’s buildings is one of the tasks the carbon consultants are most commonly asked to complete. We’re always keen to point out that the first step should be energy efficiency and helping the people in the building to think about and use energy differently. But whether it’s ESCo structures and
heat-network, Microgeneration or CRC we have the broad range of experience and capabilities to support the people managing the nations built environment. The CRC is possibly the first major hurdle facilities managers will encounter in the run-up to 2016 but there will be plenty more obstacles to overcome, in terms of technology, skills and public engagement if we are to meet the Government’s ambitious targets. However we’re convinced that together the industry has the innovation and determination to succeed.
www.eon-uk.com
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