Presentaiton is in two halves. I will talk about what we have achieved and how that is helping us prepare for Green Deal and ECO. Nic will put our achievements into context and set out how much further investment is needed to meet our carbon reduction targets.
Recognise contribution by RSL’s and efforts to improve their own stock
District heating opportunities should be supported by the Green deal and in particular ECO. The scale of the investment is such that in certain areas, the agglomeration of individual Green Deal loans could finance a district or community scale heating scheme. Development of such networks requires a large initial capital injection – but once that they are up and running it is relatively easy to extend such networks. Harnessing the Green Deal and ECO financing streams could allow stakeholders that have an interest in developing such schemes to overcome the initial investment hurdle for such development.
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On average there are 189 EWD each year in Stoke-on-Trent. This is preventable. EWD is the number of deaths in the 4 winter months (Dec – March) minus the average number of deaths across the rest of the year.
The Green Deal in Stoke-on-Trent - by Iain Podmore
Green Deal in Stoke-on-Trent Iain Podmore Housing Enabling Team Housing Services Tel: 01782 235537 Email: Iain.firstname.lastname@example.org
Scale of the ChallengeThe ChallengeGovernment commitment to reduce emissions by 80% by 2050 -85% of existing houses will be standing in 2050Climate Change Committee target for 2022: 90% of all lofts and cavity walls insulated10.1m additional lofts7.5m additional cavity walls insulated13m boilers to be replaced with efficient boilersThe SolutionThe Introduction of Green Deal – which will allow consumers and businesses to make energyefficiency improvements to their properties without upfront costsA new Energy Company Obligation (ECO) to replace the existing Carbon Emissions ReductionTarget (CERT) and Community Energy Saving Programme (CESP)
Green DealA regulatory framework enabling companies to offer householders andbusinesses:accredited advice and recommendationshome energy efficiency improvements at no up-front costreassurance that work is of a high standardtheability to pay via electricity bills over the long term (e.g. 25 years),making use of the money saved on fuelonly to pay whilst they remain in that propertybacked up by a new Energy Company ObligationThe Green Deal will include owner-occupiers, the private and social rentedsectors and the commercial sector.
Energy Company Obligation post 2012It is estimated the cost of ECO over the next three years will be in the region of £1.3bnCarbon Saving Target (75% of ECO cost)Tenure: All tenuresMeasures: External Wall Insulation (EWI). Other measure may be included if part of EWI packageTarget: 0.5 MtCO2/yr by 2015Assist: Target will assist an est. 515,000 homes with EWI over 3 years and 1.5 million by 2022Eligibility: Property has solid wallAffordable Warmth Target (25% of ECO cost)Tenure: Private Sector onlyTarget: £3.4bn reduction in notional lifetime costs of heating for low income and vulnerablehouseholds by 2015Assist: Target will assist an est. 325,000 households by end of March 2015Eligibility: Proposing similar eligibility to CERT Super Priority Group
Stoke-on-Trent ChallengeThe Challenge:All 19,300 social homes meet Decent Homes Standard (DHS).In comparison, nearly half of all private sector homes fail the DHSThere are c.25,000 pre-1919 solid wall properties in the private sector1,050 flats across (17) high and (26) low rise blocks in need of improvementFuel poverty has risen sharply over the last 4 yearsTo offer a solution to all c.112,000 properties in Stoke-on-TrentThe Solution:Informed by lessons learned from previous programmesInformed by local intelligence on housing stock & population dataA balance between social obligations and corporative objectivesHas to be something that residents/ occupiers want
Profile of Energy InvestmentProgress:*estimatesDECC have released figures which shows that in terms of % of housing stock insulated, the City is:the best performing authority for installing insulation measures in the West Midlands Region.in the top 11% best-performing LA areas in the UK for installing energy-saving measures.
Lessons Learned from CERT and CESP Energy company-managed: typically, these schemes are funded, project managed and delivered by the energy company involved, often using the company’s own energy services businesses to carry out installation; Client-managed: direct funding relationships, whereby the schemes are managed by either the relevant local authority or the HA, with the energy company funding the CESP measures and overseeing the carbon accounting, quality assurance and monitoring; Area based initiatives have proved successful by providing competitive and transparent business models accessing thousands of homes. It has to be underpinned by a solid network of local providers. Voluntary agencies assist in reaching the most difficult to reach households. Appropriate resourcing, skills and knowledge. The scale of delivery would not have been achieved with out a dedicated local team. A sufficiently resourced team will be required to achieve an area based whole house programme of improvements across the city over the next 25 years. The local authority removes risk for investors. The local authority has had responsibility for a number of roles; planning; customer engagement and management; tenant/ householder sign up/ acceptance; financial administration; access to local market intelligence; all of which could be chargeable or costly for any outside organisation tasked with local delivery.
Area Plans Identify key “enabling” areas - Carbon Rich Income Poor communities Vulnerable fuel-poor households may: be debt averse represent a credit risk to lenders Thermal comfort element means wont re-pay savings. Identify all other Home Improvement Works to be carried out (e.g. kitchens, bathrooms, dividing walls etc) Work with health services to ensure all residents receive support and assistance to stay warm in winter Amalgamate Green Deal Plan and ECO funding to create district heating opportunities
Local GD & ECO Policy Objectives1. Has to address fuel poverty and climate change agenda:Reduce fuel poverty and housing related CO2 emissionsIncrease the security of energy supplyTo future proof properties by getting them ready for district heating connectionImprove the energy performance of homes with particular emphasis on hard to treat homesDelivery model has to sustain itself financially – possibility of charging for provision of some services2. Opportunity to link into home improvement; public health; & economic growth agenda’s?Assistlocal businesses to be ready/ equipped for emerging low carbon marketsGenerate and maintain jobs and apprenticeshipsIncreases levels of stock meeting decency standards in the private sectorReduce health and financial inequalities3. The objectives have to be attractive enough to bring in the private sector investment!Reduce risk for investors – planning, procurement, legal, supply chain?To provide certainty on level of take up and number of measures to be installed
Delivering Green Deal and ECO Green Deal, without significant support from ECO, will have a limited impact in Stoke-on-Trent Policy focus to secure and maximise ECO investment in the City Maintain an area based approach to delivery (Green Deal and ECO brokerage) Cost effective resource strategy Strong Leadership and Effective Community Partnerships Well organised and well resourced supply chain A trusted delivery organisation with a clear offer that is relevant to local need An understanding of customer demand (and potential barriers) Framework Agreement to cover all Green Deal and ECO eligible works Role of local authority to de-risk investment by creating the conditions on the ground that make it attractive for partners to invest in the City e.g. community engagement, planning, data etc Building upon success of North Staffs Warm Zone, the local authority will negotiate high levels of ECO funding and identify all other programmes/ funding to support retrofit: Energy Company Obligation; Department of Health; Home Equity or Home Improvement loans; Renewable Heat Incentive and Feed in Tariff income; Green Deal Finance Local authority will work with CORE to ensure that the local authority and the supply chain has all necessary and correct qualifications and accreditations to deliver Green Deal and ECO.