Blake Lapthorn and Savills sustainability in the changing environment seminar

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.”

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?

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.

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)

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!

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

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

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

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

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

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.

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!

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?

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

Code for Sustainable Homes…

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

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

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

Cost effective scenarios

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

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

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

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

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

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.

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

Feed In Tariffs

Renewable Technologies – ROC Banding

Renewable Heat Incentive

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

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.

EPC – Example Approach

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.

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.

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

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

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

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

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

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

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

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?

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

Blake Lapthorn and Savills sustainability in the changing environment seminar

by Blake Lapthorn on May 26, 2010

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Blake Lapthorn and Savills sustainability in the changing environment seminar — Presentation Transcript