Build Upon: Initial Commercial Buildings Sector Workshop

Co-Creating Ireland’s National
Renovation Strategy – V.2
Dublin, 12th April 2016

Pat Barry
Executive Director - IGBC
#BuildUpon

Agenda
09.00 Session 1 – Setting-up the Scene
10.30 Coffee Break
10.50 Session 2 – Retrofitting, why it matters?
12.45 Lunch Break
01.45 Session 3 - Managing Tenants’ Expectations –
Owner/Investor Challenge
03.10 Coffee Break
03.30 Session 4 – Scaling Up Deep Renovation
05.00 Closing Session
05.20 Event Ends
#BuildUpon

Jim Scheer
Programme Manager
Energy Modelling Group - SEAI
#BuildUpon

Scene setting:
Towards large-scale
renovation in the
commercial buildings
sector
Jim Scheer
SEAI
April 2016

€700m
annual
savings
Advice and
mentoring
to over 3,000
SME’s
160 largest
industry
users
activated
Over
300,000
homes
upgraded
270
community
based
projects
Building
regulations
Public sector
programme
Tax
measures

How do we accelerate
uptake of energy
efficiency across the
economy?
We know..
• There is no silver bullet
• It does not happen by itself

Finance
Different measures are needed to
over come different barriers
Information
Split
incentives
‘Hidden’
costs

Commercial buildings survey - Stock

Commercial sector savings potential

Consumer behaviour - Commercial sector

Existing programmes and measures
• Large Industry Energy Network (LIEN)
• Energy Agreements
• €70 million Energy Efficiency Fund
• Audits required under EU EE Directive (S.I. 426)
• Energy contracting / ESCOs
• Public sector programme
• Energy efficient design methodology …

EXEED Certified
Grants just
launched…

€
€ €
€ €
Investment
Value of savings
+ Health /wellbeing,
productivity
+ Competitiveness
+ Reduced import bill
+ more…
Unlocking the multiple benefits

Target
achievement
NOW
Risks of
inaction
Net savings €8 billion
Government +€1 billion
Multiple benefits
Lost competitiveness
Import reliance
EU fines in 2020
2020

The Sustainable Energy Authority of Ireland is partly
financed by Ireland’s EU Structural Funds Programme co-
funded by the Irish Government and the European Union.
Supporting a powerful national
renovation strategy, based on
targeted action … delivered by
passionate people.
More information at www.seai.ie/
jim.scheer@seai.ie

Marion Jammet
Business Development Manager
IGBC
#BuildUpon

Co-creating Ireland’s National
Renovation Strategy (2017-2020)
Tuesday, 12th April 2016
#BuildUpon
#BuildUpon

I. Co-creating an ambitious national renovation strategy for
Ireland (2017 – 2020)
II. Renovating Ireland’s commercial buildings stock:
Barriers & Opportunities
#BuildUpon
#BuildUpon

2011 2012 2013 2014 201
5
2016 2017 2018
.
Better Energy
Finance
Workshop on 1st
Renovation strategy
White paper on
energy
Innovation
projects
developed from
Build Upon
Art. 4 Energy
Efficency
Directive
Renovation task
group
2nd version to
be submitted by
30th April 2017

2015
#BuildUpon
www.buildupon.eu/stakeholders
#BuildUpon

#BuildUpon
2015
http://ie.buildupon.eu

#BuildUpon
30 Experts
7 Sectors
3 Questions

#BuildUpon
Q.1 In your opinion, what are the main barriers to large scale deep
renovation in the commercial buildings sector?
Q.2 What kind of changes are necessary for large-scale deep
renovation to happen in the commercial building sector?
Q.3 What measure(s) have the most potential for
implementation in Ireland in a period of 5 to 15 years for
maximal impacts?

#BuildUpon
Q.1 In your opinion, what are the main
barriers to large scale deep renovation
in the commercial buildings sector?

#BuildUpon
No incentive for tenants to
carry out any upgrades
Deep renovation Cost
Lack of regulatory requirements
Payback
Times
Lack of understanding of the benefits associated
with deep renovation Cheap Energy
Lack of understanding of the process
Energy tariffsCompeting priorities

#BuildUpon
Q.2 What kind of changes are
necessary for large scale deep
renovation to happen in the commercial
buildings sector?

#BuildUpon
Minimum energy efficiency
standards
Linking business charges/taxes to energy
efficiency
Information on the benefits of deep-
renovation
Using tax incentives
Better enforcing existing legislation
Awareness campaigns targeting businesses
Government backed low interest loans
Deep Renovation Guidelines

#BuildUpon
Q.3 What measures have the most
potential for implementation in Ireland
in a period of 5 to 10 years for maximal
impacts?

#BuildUpon
Tax Incentives
Incentivised schemes
Mandatory schemes
Penalties for non-compliance
Legislation to ensure buildings of a certain
age / type are renovated to a certain standard
Tools to measure retrofit performance & increase
investors confidence
Guidelines
Low cost technologies / measures with short payback
period
Collaborative business Models

#BuildUpon
Thank you
Marion Jammet
www.buildupon.eu/ireland
marion@igbc.ie
01 681 5862
This project has received funding from the European Union’s Horizon 2020 research and
innovation programme under grant agreement No 649727.

Session 2
Retrofitting, why it matters?
#BuildUpon

Building Social Potential for
Deep Renovation
BUILD UPON: Co-creating Ireland’s National Renovation Strategy (2017-2020)
Workshop 1: Initial Commercial Buildings Sector Workshop
April 12 2016, Ocean’s 11, Dublin
Katy Janda,
Environmental Change Institute
Oxford University

Katy.Janda@ouce.ox.ac.uk
Overview
Business as Usual
– Technical & economic
potential for change
• Market
transformation
– Penalties
– Incentives
– Information
Business as Unusual
– Social Potential for
change
• Market
transformation
– Citizen science
» Polisdigitocracy
– Building communities
– “Middle-out”
pathways

The challenge: global energy use is
rising and carbon intensive

Source: IEA World
Energy Outlook, 2008

The buildings sector offers the largest low-cost carbon reduction
potential in all world regions by 2030
Figure SPM.6: Estimated sectoral economic potential for global mitigation for different regions as a function of carbon price in 2030 from bottom-up studies, compared to
the respective baselines assumed in the sector assessments. A full explanation of the derivation of this figure is found in Section 11.3.

We have the technology…
Source: Jan Barta, Center for Passive Buildings, www.pasivnidomy.cz
0
50
100
150
200
250
Stávající zástavba Pasivní dùm
celkováenergie[kWh/m
2
a]
Domácí spotøebièe
Vzduchotechnika
Ohøev TUV
Vytápì ní
- 90%
- 75%

Buildings are socially and culturally
“embedded” (for ill or for good)
 locality is unimportant
 energy can be squandered
 disconnectedness is normal
David Orr, “Architecture as Pedagogy” Orion Afield:
Working for Nature and Community, v3 n2 p16-19 Spr
 static boxes
 beyond our control
 may not belong to us
Janda, K. B. 2011. "Buildings Don't Use Energy: People
Do." Architectural Science Review 54 (1):15-22.

The problem

Some solutions…
Information Advice/advertising

Katy.Janda@ouce.ox.ac.ukKaty.Janda@ouce.ox.ac.uk
Motivating the Market

McKinsey Curve

The Existing Energy Efficiency Ideal:
Technical Potential (and its progeny)
The Efficiency
“Gap”

Katy.Janda@ouce.ox.ac.ukHero & Learning Stories, ECEEE
2013 Janda & Topouzi
Page 58
Why do we need to broaden the idea of
energy savings potential?

Insanity:
Page 59
…doing the same
thing over and over
again and expecting
different results.
Albert Einstein

Katy.Janda@ouce.ox.ac.ukKaty.Janda@ouce.ox.ac.uk
Buildings are dynamic,
sociotechnical systems
Building design
Energy
services
Occupant behaviour
Site &
environment
Source: Gavin Killip, ECI

Behavior Can Trump Design
Source: Keesee, M. 2005. “Setting A New Standard - The Zero Energy Home Experience
In California” ISES 2005 Proceedings

Efficiency Gap as a “People” Problem:
Oh, behave!

The New Holy Grail: Behavioral Potential
Smart use
Proper use

Some Problems…
• Information deficit
model doesn’t work
• Attitude / Behavior /
Change model doesn’t
work
• “Smart” may not equal
“proper”
• And then…

W I
C
K
ED
http://www.energy.ox.ac.uk/wicked/
DECs
Green Leases

Is “technical potential” the right target?
Hero & Learning Stories, ECEEE
2013 Janda & Topouzi
Page 68

Social potential
vs.
• Things some people do anyway
• Existing social change pathways

People as Active Participants
Ladder of Citizen Participation (Arnstein 1969)
Nudge
Feedback

Google Ngram Viewer English Language Corpus
Citizen
Consumer
1910 2005
1970 2008
Citizen
Consumer
User

Social Potential 1: Citizen Science

Christmas Bird Count at Lake Como, 1963, Fort Worth Audubon Society
(http://library.uta.edu/spco/timeframes/christmas_bird.html)

CITIZEN science

citizen SCIENCE

citizen SCIENCE
Interested Citizen
• Has data
• Cannot understand or
analyze it
Building Expert
• Needs data
• Can provide context and
analysis

Social Potential 2:
Building Communities

Stakeholder Engagement – the behaviour literature
Source: WBCSD 2009
organization
individual

Groups
Organisations
Buildings
Janda, K. B. 2014. "Building Communities and Social
Potential: Between and Beyond Organizations and
Individuals in Commercial Properties." Energy Policy 67
(April):48-55.

Cool Biz Corporate Social Responsibility
Intensive & Multiple Uses
Green
Leases

Social Potential 3:
Middle-out pathways

How does social change happen?
Top-Down
56%
Bottom-Up
46%

Middle-
Out
National
Governmen
t
Citizens
Janda, K. B., & Y. Parag. 2013.
"A Middle-Out Approach for Improving
Energy Performance in Buildings." Building
Research & Information 41 (1):39-50.
Missing Middle (s)
• Local government
• Utilities
• Community groups
• Building professionals
• Congregations
Parag, Y., & K. B. Janda. 2014.
"More than Filler: Middle Actors
and Socio-Technical Change in the
Energy System from the "Middle-
Out"." Energy Research and Social
Science 3 (September):102–112.

Multiple benefits and better buildings

Summary &
Conclusions
• Technical potential is an ideal, not a reality
– Even with “proper” and “smart” behavior
• Social potential is a different ideal
– Offers different opportunities through
• Citizen science (polisdigitocracy)
– might increase engagement and understanding of both
experts and non-experts
• Building communities (not just buildings)
• Middle-out change
– Expertise used for public good

Thank you
Katy Janda, ECI
katy.janda@ouce.ox.ac.uk

Session 3
Managing Tenants’ Expectations
Owner/Investor Challenge
#BuildUpon

CK
IWWORKING with
Infrastructure Creation of Knowledge and Energy strategy Development
A WICKED approach to better building
performance: connecting tenants and landlords
Katy Janda, Environmental Change Institute, Oxford University
WICKED Co-Investigator and Research Director
BUILD UPON: Co-creating Ireland’s National Renovation Strategy
(2017-2020)
April 12 2016, Ocean’s 11, Dublin

W I
C
K
ED
Common claims about energy efficiency…

W I
C
K
ED
WICKED’s perspective:
It isn’t easy being “green”
 A ‘wicked’ problem (Rittel & Webber 1973) is:
 Complex and interdependent
 Difficult to solve (may be difficult to recognize)
 Addressing one aspect of a wicked problem may
reveal (or create) other problems
 Energy use is a WICKED sociotechnical problem:
 The retail sector is diverse and complex.
 One size will not fit all.
 Technological solutions must fit organisational characteristics
Top-Down
Analytics
of the Data Rich
Learning
from the
Middle-Out
Bottom-Up:
Enriching the
‘Data Poor’

W I
C
K
ED
14 July 2015
The WICKED challenge:
what new information and tools can help
different segments of the retail sector
develop proactive energy strategies?
Infrastructure
Technical
Organisational
Legal
Creation
of
Knowledge
Energy
strategy
Development
Working with…

W I
C
K
ED
WICKED time frame July 2014-16, partners
14 July 2015
In advanced discussion:

W I
C
K
ED
One size solution will not fit all.
What about 6 sizes…?
14 July 2015
WICKED
Market
segments
Owner
occupiers Landlords Tenants
Data Rich
AMR + energy
managers
Type
A
Type
B
Type
C
Data Poor
Manual meters, no
energy managers
Type
D
Type
E
Type
F
Leased Space
Best
practice
leasing

W I
C
K
ED
‘Greener’ leasing practices: why?
14 July 2015
Traditional Leases: problematic environmental practices
‘Split incentives’ $
Landlord invests in plant, equipment, building fabric;
tenants pay energy costs
My
energy
bills
My
building
landlord
tenant

W I
C
K
ED
14 July 2015
‘Split incentives’ $
Adversarial relationship: ‘utility maximising’
Rent is
too
expensive
Need to
increase
rent!
landlordtenant

W I
C
K
ED
14 July 2015
‘Split incentives’
Adversarial relationship
Ignore environmental issues

W I
C
K
ED
14 July 2015
Traditional Leases:
problematic
environmental
practices
Greener Leases: environmental preservation and
opportunity
‘Split incentives’ ‘’Green improvement” clauses: example, tenant
allowed to upgrade and reap savings benefit; shared
costs
Adversarial
relationship
Working together: duty to co-operate in relation to
energy management and sustainability
Ignore environmental
issues
Data- sharing
Maintain energy ratings

W I
C
K
ED
14 July 2015

W I
C
K
ED
Landlords leading tenants
17 July 2015

W I
C
K
ED
17 July 2015
My core
business
My
building
Building
performance
landlord
tenant

W I
C
K
ED
17 July 2015

W I
C
K
ED
The promised land (?)
indoor environmental quality
 Improving: noise, air quality,
odor, visual acuity
 Energy demand response,
localized control
Leads to:
 Increased productivity
 Decreased presenteeism
 Reduced absenteeism
17 July 2015

W I
C
K
ED
Landlords leading tenants
 Pros:
 Builds trust
 Builds learning
 Builds expertise
 Landlords
 Tenants
 Builds value
 E.g, GRESB
 Reduces environmental
impacts
 And regulatory costs
 Cons:
 May not be quick wins
because scale matters
 Tenants are different
 Buildings are different
 Higher resolution
information may expose
“failures” in current
practice in particular places
 Landlords/FMs could learn
from “high reliability”
organizational practice
17 July 2015

W I
C
K
ED
BREAK
14 July 2015

W I
C
K
ED
14 July 2015
Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The
evolution of green leases: towards inter-organizational
environmental governance." Building Research & Information. DOI:
10.1080/09613218.2016.1142811..

W I
C
K
ED
M&S
 800 stores in UK + 400
overseas
 Governed by “Plan A”
sustainability objectives
 Announced “green lease”
policy in 2013
 70 MOUs with existing “Better
Building Partnership” landlords
Learning
from the
Middle-Out
14 July 2015
CGreen Leases for multi-national
retailer (data rich tenant)

W I
C
K
ED
Findings 1: What a green lease is and does…
 Model green clauses promoted by UK and Sydney ‘Better
Buildings Partnership’ (BBP) industry groups contain:
 Varying levels of ambition, specificity and
enforceability
 Only the Sydney BBP has a model green clause
enabling the landlord to recover the cost of
environmental improvements through service charges
 Adopted green clauses in the UK and Australia:
 Tend to be broad and unenforceable
 Include very general commitments:
 to improve environmental performance
 to cooperate (e.g., share data about
environmental performance)
14 July 2015

W I
C
K
ED
Findings 2: Who tends to use green leases?
WHO?
 Across the UK and Australia, green leases are used by large powerful
organisations.
 Generally led by landlords, particularly BBP members
 Exceptions:
 The Australian government requires green leases for its
offices
 Marks & Spencer (M&S) is implementing a green lease &
MoU policy across its the UK properties
WHERE?
 More prevalent in the office sector than in the retail sector
 More prevalent in prime properties than in sub-prime properties
14 July 2015

W I
C
K
ED
Findings 3:
 Green leases have more
symbolic value than material
impact
 Lease clauses, including
green ones, appear to have
little relevance to day-to-
day operations
 Early adopters suggest the
negotiation process
provides a platform for
discussion and cooperation
14 July 2015Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The evolution of
green leases: towards inter-organizational environmental governance." Building
Research & Information. DOI: 10.1080/09613218.2016.1142811.

W I
C
K
ED
Conclusions and Next steps
14 July 2015
Room for
voluntary
improvement
Tenant
Business as Usual Capacity to Improve
Landlord
Business as
Usual
Capacity to
Improve
X
Tenant
Leads
landlord
(e.g, M&S)
Landlord
leads (?)
tenant
Green leases
(co-evolution of
improvement)

W I
C
K
ED
Thoughts for further research
14 July 2015
My core
business
My
building
Building
performance
landlord
tenant
Katy.janda@ouce.ox.ac.uk

Session 4
Scaling Up Deep Renovation
#BuildUpon

BUILD UPON: Co-creating Ireland’s National Renovation
Strategy (2017-2020)
12th April 2016
Ocean’s Eleven, Google Docks, Barrow St, Dublin 4
Scaling Up Deep Renovation
Fiona Tutty MSc BSc, HDip – on behalf of SEAI

Overview of this Session
• Introduction to Scaling Up Deep Renovation
(3.30pm to 3.45pm)
– The Investment Gap
– Comparing Models
• World Café Discussion (3.45pm to 4.20pm)
– Breakout groups to discuss the Irish context
– Feedback – 5 mins each (4.20pm to 4.50pm)

The Investment Gap
Upscaling investments in energy efficiency and
renewable energy is a major challenge to meet
the EU’s energy and climate targets for 2030 and
beyond.
The Challenge

EU: €100bn investment needed to achieve
energy efficiency targets
The Investment Gap

Types of
Financial
instruments
 Loans
 Guarantees
 Equity
Addressing lack of
available financing
Providing financing at
favourable conditions
Advantages of
financial
instruments
 Leverage
effect
 Revolving
nature
 Better quality
of projects
Increasing efficiency
and effectiveness of
EU funding
Summary Of Financial Instruments

Key Financing Instruments
• Dedicated credit lines
• Leasing
• ESCO financing with Energy Performance Contracts (EPC)
– Operational EPC
– Finance (3rd party) EPC
Emerging Structures
• Energy Service Agreements (ESAs)
• On-bill financing, investment funds, green bonds, and
asset based securitization.
Summary Of Financial Instruments

ESCO Model
‘Facilitators’: a missing link for enabling clients and creating a ‘demand pull’

What Finance is Available?
What Finance is Available

Why Finance Energy Projects?
• Enable project scale and deep retrofit
• Long term paybacks can be financed
• Pay for Performance - Energy contracting
• Energy services can be financed
• Use energy savings to fund the project

Standardisation
Standardisation

Project Development Assistance
• Structural Funds
• Horizon 2020
– allocates €194 million for Energy Efficiency in 2016 and 2017
– Market uptake measures to remove market and governance
barriers by addressing financing, regulations and the
improvement of skills and knowledge.
– Ratio 1:15 PDA : Project Investment
– EE-22-2016-2017:Project Development Assistance (Sept 16)
– EE-24-2016-2017:Making the energy efficiency market
investible (Sept 16)
– EE-23-2017:Innovative financing schemes (Jan 17)

How to classify models
• Operational scheme
– Facilitation or Integration,
– With or without aggregation
• Operational Services
– Marketing Assessment
– Financial advice
– Facilitation
– Integration
– Aggregation
– Financing

• Financial Scheme
– Own funds
– Financial Institutions financing
– ESCO financing
– Program Delivery Unit financing
– Investment fund

• Implementation methodology
– Separate contracting based (SCB)
• Multiple measures, each step with different supplier,
individual projects, traditional route, high internal risk
– Energy Contracting (LESC & EPC)
• One client, one contractor/ESCO, low internal risk
– Combination of above

Comparison of Models
• Levels of ambition
• Beneficiaries
• Impact considerations
– on the public debt
– human and financial resources,
– size of the program

Name Country/
Region
Ownership Program
Delivery Unit
Beneficiaries
Berlin Energy
Saving
Partnerships
Federal state
of Berlin,
Germany
Public/Private Berlin Energy
Agency (BEA)
Local authorities
(95%), Health
Care Sector ,
SME’s &
Businesses (5%)
Eco’Energies CCI Nice Côte
d’Azur) France
Public CCI Nice Côte
d’Azur
SMEs

Model Berlin Energy Saving Partnerships Eco’Energies
Date of Creation 1996 2014
Operational Framework Facilitation through PDU Facilitation through PDU
Operational Services Marketer
Facilitator
Financial advisor
Aggregator
Marketing
Facilitation
Financial advice
Implementation Model Energy Performance Contracting Energy Performance Contracting
Financial Framework Financial institutions
ESCOs
Property Owners
using Equity/own funds, EPC
Financing, Loans, Grants
Financial institutions
ESCOs
Property Owners using Loans
Grants, Utility incentives, EPC
Financing
Funding Requirements Moderate - Less than €10m less than €1 million

Model Berlin Energy Saving Partnerships Eco’Energies
Ambition Market based
26 projects with investment amount
of 53M€ with an average of
26% energy savings.
10% – 50% energy savings
Resources Moderate 5 FTE Low, Less than 5 FTE
Growth phase Mature Start-up
Scalability High High
Replicability High High
Growth Potential Large Large
Impacts Government
Balance Sheet
Moderate Low

Discussion
1. What kind of strategy would you like to see in
Ireland?.
2. What do you think will be the main barriers
to implementing a strategy with innovative
financing in Ireland?

Checking questions
• What kind of operational model
• Facilitation or Integration
• What type of finance framework
• What kind of implementation model is
envisaged?
– EPC/ESCO or Single Contractor
– Who are the beneficiaries of the model?
• What’s is the level of ambition of the model?

Contact details
Fiona Tutty - Project Facilitator
fiona@zesco.ie
00353 87 9940578

Henk Van Der Kamp
Head of the School of Transport
Engineering, Environment and
Planning
- DIT
#BuildUpon

Co-Creating Ireland’s National
Renovation Strategy – V.2
Dublin, 12th April 2016
This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant
agreement No 649727.

Build Upon: Initial Commercial Buildings Sector Workshop

Recommended

Recommended

More Related Content

What's hot

What's hot (15)

Similar to Build Upon: Initial Commercial Buildings Sector Workshop

Similar to Build Upon: Initial Commercial Buildings Sector Workshop (20)

More from Irish Green Building Council

More from Irish Green Building Council (13)

Recently uploaded

Recently uploaded (20)

Build Upon: Initial Commercial Buildings Sector Workshop