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ESOS: The Essentials
1 July 2015
• Big picture – a reminder
• European Legislation
• English legislation
- Selling & Renting
- Operations
- ESOS
- Refurbishment & Retrofit
• The future
Overview
23%
38%
24%
9%
3% 3%
Industry
Buildings
Transport
Agriculture and land use
Waste
Exports
UK Carbon Emissions
The Big Picture – A Reminder
2009 UK Government Carbon Plan
Carbon Reduction Commitments
The Big Picture – A Reminder
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990 1997 2004 2011 2018 2025 2032 2039 2046 2050
• Energy Performance of Buildings Directive (2002/2010)
- New & existing buildings
- Systems in buildings & inspections
- Energy performance certificates & display
• Energy Efficiency Directive (2012)
- Energy distributors to achieve savings
- Public sector should purchase energy efficient buildings, products and services
- Governments to carry out energy efficient renovations on 3% of floor area
- Companies to carry out energy audits
- Smart metering
European Legislation
• Energy Performance Certificates
• Minimum Energy Efficiency Standards
Energy Efficiency (Private Rented Sector) (England
and Wales) Regulations 2015
- EPC E or better
- For new leases, from 2018
- For existing leases, from 2023
- “Reasonably Practical” to upgrade
Selling and Renting Buildings
A
B
C
D
Minimum Energy Efficiency Standards – The Future?
A
B
C
D
E
F
G
Average EPC to meet
carbon reduction targets
Possible trajectory of
minimum EPC for rental
Average EPC
Minimum EPC for rental
A
B
C
D
Minimum Energy Efficiency Standards – The Future?
A
B
C
D
E
F
G
Average EPC to meet
carbon reduction targets
Possible trajectory of
minimum EPC for rental
(5 yearly revisions)
Average EPC
Minimum EPC for rental
• Climate Change Agreements
• Carbon Reduction Commitment
• Mandatory Greenhouse Gas Reporting
• F-gas
• Climate Change Levy
• Air-conditioning Inspections
• Smart Meters
• Display Energy Certificates
• Energy Savings Opportunity Scheme
Building Operations
EU ETS & CCAs
CRC
ESOS
Energy Intensive Industries
Large Commercial
All private companies >250
employees
• Private companies with either:
- > 250 employees or
- Turnover > £38.9M & balance sheet >£33.4M
• Compliance date: 5 December 2015
• Audits carried out every 4 years
• Administrated by Environment Agency
• Sign-off by ESOS Lead Assessor & Company Director
• Not prescriptive
Key Facts
Energy Savings Opportunity Scheme
ESOS compliant assessment
Compliant
audits
Lodged
DEC /
Green Deal
Assessment
ISO 50001
• Private companies with either:
- > 250 employees or
- Turnover > £38.9M & balance sheet
>£33.4M
• Corporate Groups
- Where at least one undertaking meets
the above
- The entire UK operations needs to
participate
- Where highest parent is overseas, can
disaggregate
Who Qualifies?
Energy Savings Opportunity Scheme
Measure
100% of
energy use
• All fuels
• Buildings, process
& transport
• 12 months inc.
31/12/14
Audit 90% of
energy use
• Can sample
• Range of methods
• 10% “deminimus”
• Site visits required
Energy saving
recommend-
ations
• Practical
• Life-cycle cost
analysis
• Voluntary
implementation
Board level
sign-off
Submit to EA
by 05/12/15
Process
Energy Savings Opportunity Scheme
Compliance Energy survey Energy strategy
Energy by kWh
Transport Buildings
Our ESOS Audit
• Same data as collected for CSR reporting
• Used energy cost to exclude more small
offices
• Best fit for business – included buildings
we own as more scope for savings
• Auditing 7 offices & business car travel
• 11 excluded but <10% energy use
• Fleet cars excluded <1% energy use & high
comparative cost to audit
15
Our Energy Saving Actions
28% reduction in CO2
between 2009 and 2013
Implement an Environmental Management System
Invest in improvements to your building
Measure and monitor energy consumption
Source energy efficient replacements for equipment at end of life
Train your staff to adopt energy saving habits
Energy Audits
Arnolfini Canada House
• Building Regulations Part L2B
• Planning Requirements
• Tools:
- BREEAM Refurbishment & Retrofit
- Enhanced Capital Allowances
- Green Deal
- EnerPHit
- Existing Buildings Survival Strategy
- Arup Appraise
Refurbishment & Retrofit
Step 1
• Determine your baseline & appropriate level of refurbishment
Step 2
• Review your building maintenance, housekeeping and energy purchasing
Step 3
• Establish your goals and targets
Step 4
• Select your optimal upgrade initiatives
Step 5
• Make your survival strategy happen
Existing Buildings Survival Strategy
19 Arup Edinburgh Refurbishment
20
AssetMAP
Understand Client
Drivers
Prioritise Assets in
Portfolio (Filter 1)
Assess Opportunities
for each Asset (Filter
2)
Develop Retrofit
Strategy
(Filter 3)
Integrated Design &
Delivery
Performance
Monitoring &
Enhancement
Energy Efficiency Across Portfolios
Improve the worst by a lot or all by a little?
• Smart meters to every business by 2020
• Support for the Climate Change Act
• Strong deal for Paris COP 2015.
• Cost Effective Energy Efficient Measures Bill
• Revisions due:
- Next Building Regulations update – 2016 ???
- MEES roadmap?
- Roadmap to zero carbon buildings?
This Parliament

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Building Energy Legislation - Liz Meddings, Arup

  • 2. • Big picture – a reminder • European Legislation • English legislation - Selling & Renting - Operations - ESOS - Refurbishment & Retrofit • The future Overview
  • 3. 23% 38% 24% 9% 3% 3% Industry Buildings Transport Agriculture and land use Waste Exports UK Carbon Emissions The Big Picture – A Reminder 2009 UK Government Carbon Plan
  • 4. Carbon Reduction Commitments The Big Picture – A Reminder 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1990 1997 2004 2011 2018 2025 2032 2039 2046 2050
  • 5. • Energy Performance of Buildings Directive (2002/2010) - New & existing buildings - Systems in buildings & inspections - Energy performance certificates & display • Energy Efficiency Directive (2012) - Energy distributors to achieve savings - Public sector should purchase energy efficient buildings, products and services - Governments to carry out energy efficient renovations on 3% of floor area - Companies to carry out energy audits - Smart metering European Legislation
  • 6.
  • 7. • Energy Performance Certificates • Minimum Energy Efficiency Standards Energy Efficiency (Private Rented Sector) (England and Wales) Regulations 2015 - EPC E or better - For new leases, from 2018 - For existing leases, from 2023 - “Reasonably Practical” to upgrade Selling and Renting Buildings
  • 8. A B C D Minimum Energy Efficiency Standards – The Future? A B C D E F G Average EPC to meet carbon reduction targets Possible trajectory of minimum EPC for rental Average EPC Minimum EPC for rental
  • 9. A B C D Minimum Energy Efficiency Standards – The Future? A B C D E F G Average EPC to meet carbon reduction targets Possible trajectory of minimum EPC for rental (5 yearly revisions) Average EPC Minimum EPC for rental
  • 10. • Climate Change Agreements • Carbon Reduction Commitment • Mandatory Greenhouse Gas Reporting • F-gas • Climate Change Levy • Air-conditioning Inspections • Smart Meters • Display Energy Certificates • Energy Savings Opportunity Scheme Building Operations EU ETS & CCAs CRC ESOS Energy Intensive Industries Large Commercial All private companies >250 employees
  • 11. • Private companies with either: - > 250 employees or - Turnover > £38.9M & balance sheet >£33.4M • Compliance date: 5 December 2015 • Audits carried out every 4 years • Administrated by Environment Agency • Sign-off by ESOS Lead Assessor & Company Director • Not prescriptive Key Facts Energy Savings Opportunity Scheme ESOS compliant assessment Compliant audits Lodged DEC / Green Deal Assessment ISO 50001
  • 12. • Private companies with either: - > 250 employees or - Turnover > £38.9M & balance sheet >£33.4M • Corporate Groups - Where at least one undertaking meets the above - The entire UK operations needs to participate - Where highest parent is overseas, can disaggregate Who Qualifies? Energy Savings Opportunity Scheme
  • 13. Measure 100% of energy use • All fuels • Buildings, process & transport • 12 months inc. 31/12/14 Audit 90% of energy use • Can sample • Range of methods • 10% “deminimus” • Site visits required Energy saving recommend- ations • Practical • Life-cycle cost analysis • Voluntary implementation Board level sign-off Submit to EA by 05/12/15 Process Energy Savings Opportunity Scheme Compliance Energy survey Energy strategy
  • 14. Energy by kWh Transport Buildings Our ESOS Audit • Same data as collected for CSR reporting • Used energy cost to exclude more small offices • Best fit for business – included buildings we own as more scope for savings • Auditing 7 offices & business car travel • 11 excluded but <10% energy use • Fleet cars excluded <1% energy use & high comparative cost to audit
  • 15. 15 Our Energy Saving Actions 28% reduction in CO2 between 2009 and 2013 Implement an Environmental Management System Invest in improvements to your building Measure and monitor energy consumption Source energy efficient replacements for equipment at end of life Train your staff to adopt energy saving habits
  • 17. • Building Regulations Part L2B • Planning Requirements • Tools: - BREEAM Refurbishment & Retrofit - Enhanced Capital Allowances - Green Deal - EnerPHit - Existing Buildings Survival Strategy - Arup Appraise Refurbishment & Retrofit
  • 18. Step 1 • Determine your baseline & appropriate level of refurbishment Step 2 • Review your building maintenance, housekeeping and energy purchasing Step 3 • Establish your goals and targets Step 4 • Select your optimal upgrade initiatives Step 5 • Make your survival strategy happen Existing Buildings Survival Strategy
  • 19. 19 Arup Edinburgh Refurbishment
  • 20. 20 AssetMAP Understand Client Drivers Prioritise Assets in Portfolio (Filter 1) Assess Opportunities for each Asset (Filter 2) Develop Retrofit Strategy (Filter 3) Integrated Design & Delivery Performance Monitoring & Enhancement Energy Efficiency Across Portfolios
  • 21. Improve the worst by a lot or all by a little?
  • 22. • Smart meters to every business by 2020 • Support for the Climate Change Act • Strong deal for Paris COP 2015. • Cost Effective Energy Efficient Measures Bill • Revisions due: - Next Building Regulations update – 2016 ??? - MEES roadmap? - Roadmap to zero carbon buildings? This Parliament