Blake Lapthorn solicitors and Savills property consultants held a seminar on sustainability in the changing environment on 26 May 2010.

1. Planning for Climate Change
“..climate change represents a potentially catastrophic threat but it
is within our control to address it – and address it we must.”

2. Sustainable development and climate change
Planning already has the concept of “sustainable development”
Sustainable development enshrined in PPS1 (Jan 2005) which says
it is “the core principle underpinning planning”
Climate change has, to date, been just one aspect of
sustainable development so it has been recognised that more
drastic steps required!
Consequently Governments are responding with legislative and
policy initiatives.
– Kyoto Protocol and in UK the Climate Change Act 2008
– Copenhagen Accord?

3. Tackling climate change – current position
Supplement to PPS1 – ‘Planning and Climate Change’
“Tackling climate change is a key Government priority for the planning system”
“Addressing climate change is therefore the Government’s principal concern for
sustainable development”
Sets out the role climate change considerations have in determining planning
applications and development control decisions
Stand alone national policy document - material planning consideration now
Underpinned by Planning Act 2008 – requires policies in RSS / LDD to secure
development contributes to mitigation of, and adaptation to, climate change
It specifically states that it takes precedence where there is any inconsistency /
difference between it and the other PPSs.

4. Climate Change Supplement
Its aim is to set out “how planning should contribute to
reducing emissions and stabilising climate change and take
into account the unavoidable consequences”
Emphasises that climate change considerations are
relevant at all stages of the planning process
– so from formulation of spatial strategies (RSS / LDD) to the making
of decisions on individual applications
It contains clear recognition of planning’s role in
tackling climate change through emissions reductions;
– Supplement sets out how regional / local planning authorities can best
support this
– Acknowledges that Building Regulations being tightened to get new
homes to be ‘zero carbon’ by 2016 (all non-domestic buildings by 2018)

5. Achieving the Key Planning Objectives - the RSS
Climate change should be a key and integrating theme of the RSS
– in conjunction with economic, social and environmental concerns
RSSs should;
– Focus substantial new development to locations accessible other than by private
car and where energy can be gained from de-centralised energy supply systems or
where there is potential for this to be realised
– Ensure opportunities for supply of renewable and low-carbon sources of energy are
maximised
– Set targets for renewable energy generation (PPS22)
– Encourage practices that result in carbon sinks
– Take account of water resource availability
– Avoid locating development in areas vulnerable to effect of climate change
e.g. flooding!

6. Achieving the Key Planning Objectives – the LDDs
LPAs should consider how their Core Strategy could
further the policies of the RSS and the Key Planning
Objectives of the Supplement.
Four major elements that the Supplement covers -
(1) Renewable and low-carbon energy generation
(2) Selecting land for development
(3) Provision of decentralised energy
(4) Local requirements for sustainable buildings

7. Review of PPS1
Current consultation draft out which is to replace current
PPS1 Supplement and consolidate it with PPS22
(Renewable Energy)
Published 9 March and closing date for comments is 1 June
HURRY - first job after leaving seminar if you haven’t already is
to read document and provide your comments!!
It continues to provide a planning framework to drive
progress towards meeting the UK’s targets to reduce
greenhouse gases, use more renewable and low-carbon
energy and plan for the effect of climate change

8. Draft policies
LCF2 – Regional Planning Approach
LCF4 – Local renewable and low-carbon energy
LCF5 – Adapting to changing climate
LCF6 – Site for new development
LCF9 – Requirements for sustainable buildings

9. Of interest?
Previous Government pledged £10m to boost Council’s ‘green’
expertise – by way of providing training for Members and
planners (particularly on provision and use of renewable
energy) and also on CPD.
£10m fund to assist in master planning new eco-towns in
boroughs of East Devon and Fareham
DECC has published new guidelines designed to help regional
authorities assess the potential for renewable and low-carbon
energy

10. Coalition – what impact will this have?
Government reiterate that “climate change is one of the
gravest threats we face, and that urgent action at home and
abroad is required”
the Coalition’s programme for Government;
“push EU to adopt emission reduction target by 30% by 2020”
“seek to increase target for energy from renewable sources”
“public sector investment in carbon capture and storage for four coal fired
power stations”
“huge increase in energy from waste through anaerobic digestion”
“introduce measures to encourage marine energy”
“take measures to improve energy efficiency in business and public sector
buildings”
“encourage community-owned renewable energy schemes”
“work towards an ambitious global climate deal that will limit emissions”
Communities to be given a greater say over their local
planning system
abolishment of RSS

11. Sustainable Buildings
Building Regulations – Part L (Building Efficiency)
It is Government policy to strengthen the minimum requirements for energy
performance in Building Regulations in 2010, 2013 and 2016.
– The Code for Sustainable Homes - new housing development.
Building a Greener Future (December 2006) sets out the following targets
in order to move towards achieving zero carbon housing:
2010 - 25% improvement in the energy/carbon performance set
in building regulations
2013 - 44% improvement
2016 - to zero carbon
– BREEAM – non domestic buildings
It should be noted that building regulations provide guidelines for minimum
standards and are based on historical information rather than projected
climate change data.

12. Conclusions
Sustainability as was (the green roof, shower and cycle
racks) will no longer do
Authorities and applicants will be under increasing
pressure to demonstrate that the spatial strategies,
policies and individual developments make a positive
contribution to reducing carbon emissions
If this is to be achieved, it will require innovation by the
developers and support of the LPAs
Change in Government unlikely to alter the stance on
climate change –possibly even stronger policies!

13. Final thoughts
Exponential increase in CO2 due to melting permafrost - it is
muted that only 100 months to save planet
– Compare this to the 40 years allowed to reach 80% reduction
in baseline of 1990 and 2016 / 2018 to go zero carbon
Is the “long-term view” and reliance on planning going
to actually make the difference?

14. Code for Sustainable Homes
Gordon Freeman ProjMan(RICS) MRICS
Director
Architecture & Building Consultancy
May 2010

15. Code for Sustainable Homes…

16. Agenda:
• Meeting the challenge
• Typical fabric specifications
• Cost effective scenarios
• Costs
• Summary
To achieve 2050 target
UK need to aim for 2.1
9.5 tonnes/annum
• tonnes/annum

17. Energy Category Update
Definition of ‘zero-carbon’
3 Step approach
• Minimum efficiency standards
• Carbon compliance – 70% less than Building Regulations
• Allowable solutions

18. Fabric analysis:
U-value (W/m2K)
Element
Reasonable Good Advanced
Roof 0.18 0.15 0.1
External walls 0.25 0.2 0.15
Ground floor 0.2 0.15 0.1
Windows/doors 1.5 1.1 0.7
E/O cost (£/m2) £13 £86 £255

19. Cost effective scenarios

20. Cost effective scenarios

21. Cost effective scenarios

22. Cost effective scenarios

23. Cost effective scenarios

24. E/O costs
Strategy for Development
E/O cost range
semi-detached Scenario
(£/m2)
Code 3 Good + ASHP Small Greenfield £31-£105
Advanced +
Code 4 Small Greenfield £89-£200
ASHP
Advanced + BM
Code 5 Small Greenfield £332-£355
+ PV (small)
Advanced + BM
Code 6 Small Greenfield £464-£491
+ PV (large)
Advanced + BM Large edge of
Code 6 £421-£478
CHP town

25. Conclusion
•
• CSH changes
• Hierarchy approach
• Fabric efficiency
• Opportunities for allowable solutions
• Careful assessment of each site
• Code 7!

26. Low Carbon and Energy Optimisation Contracts
Blake Lapthorn Oxford Seminar Presentation
May 26th 2010
Daryl Pope –Director Savills

27. Agenda
•
Current Challenges for Development
Overview of Potential Contract Solutions
Low Carbon Technology Contracts
Energy Performance Contracts
Summary & Questions

28. Current Challenges for Development
•Planning Requirements, National, Regional, Local, LDF
•Renewables and energy efficiency delivery, ‘Merton Rule’, new Building Regs Part L, Code for
Sustainable Homes >Level 4 beyond 2013.
•Sustainability Considerations, key areas Carbon, Energy, Water, Waste, Transport
•Cost allocation, developer, occupier, local authority, Section 106, CIL implications
•Development risk, finance, infrastructure replacement etc

29. Overview of Potential Contract Solutions
•Design Build Operate (DBO), full developer capital, ongoing Operate and
Maintenace Contract (O&M) typically 12 month to 5 years, technology
dependent.
•Design Build Finance Operate (DBFO) contract supplier takes full
ownership of delivery including project financing.
•Renewable and Low Carbon Technologies, including key elements of
Power Purchase Arrangement (PPA), Land Lease Agreement.
•Building /Facilities Services Energy Performance Contract (EPC), through
contracting entity can include O&M element only of DBFO delivery with
inclusion of performance target criteria and incentive/penalty payment
structure.
•Contract providers through Energy Services Company (ESCO), Multi
Utility Services Company (MUSCO), or single specialised technology
providers.

30. Renewable and Low Carbon Technology Contracts – Key
Elements
Offer to
client/developer Value
Item
(p/kWh)
Marginal Cost of Generation (MCG) % -
Value Share of Renewable Obligation
% -
Certificates (ROC)/FiT/RHI
Developer/Customer Other benefit,
% -
Embedded
Total Power Purchase Agreement (PPA) p/kWh

31. Feed In Tariffs

32. Renewable Technologies – ROC Banding

33. Renewable Heat Incentive

34. Cost Benefit Scenarios
Technology Application Indicative Typical Indicative Typical
Annual Yield Installation Annual Simple
MWh Cost £/kW Revenue Payback
/Savings
Gravity Systems, Tidal, Large scale Project £3000/kW Project > 10 Years
Hydro, Wave, Glacial Flow, with exception specific specific
Ocean Current. of Hydro, large
development
related
Wind Energy Micro, Med., 1660 MWh £1000/kW ~£300/kW 4 – 6 Years
Large Multi onshore,
2630 MWh
offshore (1
MW turbine)
Solar Photo-Voltaics Usually small 0.8 to 1.2 £2800 – 75/kWp >20 Years
scale MWh/kWp 4000/kW (location
application or installed dependent)
sites with grid
connection
issues.
Solar Thermal, flat plate, Domestic or 450 kWh/m2 £700 -3000/kW £280/kW 4-9 years
CSP, vertical/horizontal larger CSP (location
evacuated tubes applications e.g dependent)
S.Spain
example.
Combined Heat & Power, Domestic, 3000 MWh £700 – £260/kW non 4 – 9 Years
Renewables, RCIP, Large Scale (~1 MWe) 1500/kW renewable,
Turbine, biomass, co-fired £450/kW
solutions, AD. renewable

35. Energy Performance Contracts
• No developer capital cost, technology DBFO by
• ESCO provider
• Guaranteed operational performance and or savings, non
delivery risk and cost absorbed by ESCO
• Contract solution can be applied to new development building
services contracts, renewable and low carbon technology
contracts i.e. CHP, refurbishment contracts.
• Key issues are to ensure detailed feasibility and operational
baseline clarification.
• Ensure measurement and verification (M&V) regularity with
contract monitoring.
• Favoured contract methodology for many public sector clients
whishing to offset capital and maintenance costs whilst
ensuring optimum service delivery.

36. EPC – Example Approach

37. Renewable CHP – DBO Contract Case study
• Bio Fuelled CHP Capacity Demand of 100 kW running for 4500 hour per annum
•100 kW thermal, 60 kW electrical unit application with power utilised on site or
exported and hot water output integrated into existing DHW and heating systems.
•Capital cost ~£135K
• Unit footprint size 2.5 m x 1.2 m
• Thermal efficiency 36%, electrical efficiency 31%, combined 77%. Load factor of
93%.
• Thermal Output Delivery ~418.500 kWh/Year
• Electrical Input Required ~251,100 kWh/Year
• Bio fuel cost ~£51K/Year based on 22l/hour fuel demand
• Electricity cost avoidance £30,132, Gas +CCL Avoidance Cost £14,647,
Renewable Obligation Certificate Annual Revenue £22,599/Year, CRC Phase 1
allowance annual cost avoidance £1,920.
• Total Saving £18,298.
•Simple payback of ~7.4 years
• Carbon Dioxide Emissions Saving 160 Tonnes a year.
•Development secures planning consent, obtains Carbon Neutral and or Low
Carbon status.
• Further future option to consider absorption chiller to supply chilled water for site
comfort and IT cooling in development commercial buildings.

38. Summary
Energy and Sustainability delivery for new development and building
refurbishment will continue to feature as a requirement in the short
medium and longer term.
Developers can review a range of potential technology installation
and operational contract solutions to manage risk and cost exposure.
Early consideration and planning required to ensure multiple
development outputs are delivered including CSH, LDF targets,
Affordable Homes and RLC technologies as example drivers.
Opportunity to generate revenue from ESCO SPV with support of
incentive payments i.e. ROC’s, FiT’s and RHI provide.
Engage advice and contract expertise at the earliest possible stage of
development masterplanning to ensure appropriate and viable
technologies and contract solutions are put in place.

39. ‘Procuring low energy buildings:
the right people and the right
contracts’ …
(if you can find them …)

40. Energy Performance of Buildings Directive
2002/91/EC
Removal of 1000m2 threshold
New and refurbishments
(but to different standards)
By 31 Dec 2020 new buildings to consume “nearly
zero” energy
By 31 Dec 2018 public authorities to procure “nearly
zero” energy buildings

41. Low energy building standards?
BREEAM (1990)
ECOHOMES (BREEAM for Homes)
Code for Sustainable Homes
(introduced April 2007, Mandatory 2008)
PASSIVHAUS (1991)
Others …

42. Passivhaus
Insulation – continuous around building
Thermal bridges designed out
Triple glazed windows
Insulated doors
Airtightness
Mechanical ventilation and Heat Recovery
Utilisation of passive solar gain
Reduction of internal (appliance) heat gain and over
heating
Renewable and low-carbon technologies

43. Skills shortage
Planners
Building control
Designers
Trades
Site supervision
… and new technologies

44. ‘Meeting the Low Carbon Skills Challenge’
Consultation: 31 March 2010 to 23 June 2010

45. Professional Appointments
and
Building Contracts
… are they up to the job?

46. Risk allocation
What is the standard to be achieved?
What outcomes/standards are measureable? (KPI’s?)
How and when do you measure?
If performance is deficient who is liable?
… how does the contract allocate risk?

47. David Evans
Solicitor and Mediator
Construction
david.evans@bllaw.co.uk