The Benefits of Effective Energy Conservation in Islington, UK

Transcription

1 Towards a Fairer Islington: Energy Strategy Page 1

2 Contents Page Forward by Cllr Paul Smith 3 Executive Summary 4 Introduction 7 The challenging context of making Islington fairer 10 Vision, aims and corporate priorities 11 Aim 1: Empower residents and promote carbon literacy 13 Aim 2: Improve the energy efficiency of homes 15 Aim 3: Energise business to reduce energy consumption and costs 19 Aim 4: Develop local jobs and opportunities in the energy sector 20 Aim 5: Develop community energy networks and services 22 Aim 6: Improve the efficiency of council services and reduce energy 23 costs Financing 25 Communication, monitoring and review 25 Glossary 26 Appendix 27 References 28 Page 2

3 1. Foreword by Councillor Paul Smith Islington Council is on the side of its residents. In tough times we are committed to making Islington fairer by making energy more affordable and keeping people warmer. We have a five point plan: Making fuel cheaper so that people can afford to stay warm Providing Green jobs for local people through the development of a green economy Keeping our residents warmer by developing improving the fuel efficiency and better insulating Islington housing stock Homes people can afford by ensuring that new housing is genuinely affordable in terms of its energy efficiency rating and cost of heating Providing an alternative to private energy companies through Islington owned power stations and brokering better fuel prices for our residents. Islington like the United Kingdom is a divided society. Islington is home to some of the wealthiest people in the country living in some of the most desirable neighbourhoods however it is also home to real poverty and deprivation and is officially the 14th most deprived local authority in England i. It is the fifth most deprived borough in London and child poverty levels are the second highest in the country ii. Residents from Islington s richest areas can expect to live almost seven years longer than residents of the poorest areas in the borough. Fuel poverty is a key reason for the difference in life chances. Almost half of all children in Islington live in poverty and fuel poverty affects half of all pensioners in the borough. The Islington Fairness commission established Council s overarching policy of making Islington fairer and the Energy Policy will make Islington fairer though warmer more affordable homes, green jobs and training opportunities and cheaper fuel prices. I am particularly proud of the Innovative programs such as a boiler replacement programme and publicly owned heating networks that I believe will be the guide for a future government committed to making our country fairer. [Signed by Cllr Smith] Cllr Paul Smith Executive Member for the Environment Islington Council Page 3

4 2. Executive Summary 2.1 Introduction The Energy Strategy provides Islington with an overarching framework for energy projects and programmes over the next four years. This strategy focuses on tackling fuel poverty and helping Islington residents in tough times. It forms a central role in developing retrofit programmes of work, influencing the design of new builds to improve the quality of life for our residents and creating economic opportunities in the borough. Figure 1 below breaks down Islington s energy consumption by sector in 2010 and shows that 87 per cent originates from energy supply to and energy use in buildings (homes and workplaces). This strategy focuses on these two sectors and transport related consumption is addressed in Islington s Transport Strategy ( ). The strategy is responding to a number of key drivers recognised locally and nationally; declining fossil fuels, rising energy prices, fuel security, climate change and the issue of fairness in the borough. Consequences are felt at a local level in the form of increasing fuel poverty, cold housing stock, rising energy bills and fuel debt. Figure 1 Breakdown of Islington s energy consumption by sector (2010) Transport 465 GWh 13% Domestic 1367 GWh 40% Industry & commerce 1633 GWh (47%) Source: DECC figures Vision and aims of the strategy Islington council believes that a fairer Islington is better for everyone. To make Islington fairer now and to meet the challenges of the future we are determined to reduce the dependency on private energy suppliers across the borough. In the future our energy will be supplied locally and increasingly from publicly owned renewable sources, our buildings will be highly insulated and efficient, our households, businesses and organisations empowered to act. Islington will be firmly on the route towards a vibrant, resilient, fairer society. Page 4

5 The council is working towards six aims to achieve the energy vision of a vibrant, resilient and fairer society: Empower residents and promote energy literacy- ensure those in need of help understand their fuel bills, fuel usage and know how to get help before getting into fuel debt. Improve the energy efficiency of homes - using technologies (like insulation)to improve the energy rating of our older buildings, improving the thermal comfort and reducing fuel costs and influence the design of new buildings to meet the highest standards laid out in our planning Core Strategy. Energise business to reduce energy consumption and costs - managing their fuel bills and working together in the Climate Change Partnership to reduce their energy use and carbon footprint making them leaner and more economically viable. Develop local jobs and opportunities in the energy sector consider employment and training opportunities in all energy projects and programmes of work. Develop community energy networks and services - well-developed, publicly-owned decentralised energy programme, improving the security, reliability and cost of energy. Improve the efficiency of council services and reduce energy costs - from council services, schools and leisure services, thus allowing Council funds to be directed towards those that really need them. 2.3 Islington s actions to deliver the aims Islington s activities to tackle energy issues are already well underway, to follow are some of the key areas of focus to ensure we meet the aims of the strategy: Decentralised energy: The Council is at the forefront of delivering Decentralised Energy work in London and is currently installing phase one of the Bunhill Heat and Power scheme; generating cheaper heat to supply over 700 homes on the Stafford Cripps, Redbrick, St Luke s estates and Ironmonger Row Baths and Finsbury Leisure Centre. We are looking to expand the network to benefit a greater number of Islington residents. The next phase of the network extension will be innovative through using waste heat from the tube ventilation shaft and electrical substation both on City Road. The residents connected could see savings from 15% on their heating bills, dependent on the unit size, current charges and gas price at the time. Boiler replacement programme: Deliver a 3m boiler replacement programme to help residents in the private sector replace the most inefficient boilers with an efficient model saving them on average 150 per year. Energy doctor: The Energy Doctor in the Home scheme has completed hundreds of visits to residents in the borough to help reduce their energy bills. The service reaches vulnerable residents in Islington providing a vital service to those in fuel poverty, struggling to pay their bills. A 2012/13 target of 800 visits has been set for the Energy Doctor in the Home team and funding has been applied for to keep this service on-going. Energy bill reduction: We will use our influence to lobby energy companies and DECC to allow council referrals to the Warm Home Discount, work with a fuel switching company to tariff switch on behalf of our own residents, conduct borough wide promotion of Islington Fuel Switch, integrate in with other services such as Energy Doctor in the Home, SHINE and Energy Advice service and monitor other schemes and trials to see if they benefit residents It is estimated that between 60k and 500k will be saved off residents fuel bills each year. Page 5

6 Fuel poverty strategy: is being developed and will expand on the current Seasonal Health and Affordable Warmth (SHAW) strategy. The Fuel Poverty Strategy will sit with the Energy Strategy, with both strategies jointly working to save energy, improve health and reduce residents fuel bills in the borough. The Fuel Poverty Strategy will be written and adopted in Broader remit for reducing energy use within the borough: the strategy will work towards safeguarding and creating jobs/training opportunities in the borough through helping SMEs reduce their energy use and seeking training opportunities and London Living Wage in contracts. Further financial savings will be made through energy savings in council buildings, housing, schools and leisure centres through purchasing fuel dynamically through a framework of vetted suppliers and retrofitting energy efficient measures. Page 6

7 3. Introduction 3.1 Purpose of the Energy Strategy The London Borough of Islington, located in the heart of London, is characterised as a dense urban inner-city area with a complex built environment. Energy is a fundamental requirement for heating and powering our homes and workplaces. The Corporate Plan sets out the council s proposals for creating a fairer Islington. Through the council s Corporate Plan, the Energy Strategy aims to work towards the following priorities: Decent, suitable and affordable homes Cycle of poverty broken Best start in life for all children Healthy, active and independent lives Delivering basic services efficiently and well Figure 1 illustrates Islington s energy consumption in GWh iii by sector in 2010 and shows that 87 per cent originates from energy supply to and energy use in buildings (homes and workplaces). This strategy focuses on these two sectors and transport related consumption is addressed in Islington s Transport Strategy ( ). The majority of heating is provided by gas-fired boilers and the majority of electricity is supplied by the grid from large central power stations mostly fuelled by coal and gas. The strategy aims to tackle this energy dependency, reducing the amount used in the borough and consequently the carbon emissions generated and developing a decentralised energy programme to supply the borough with more secure and reliable sources of heat. This strategy outlines the aims and actions that Islington Council will take over to help people in tough times by reducing fuel poverty and making the borough a fairer place. 3.2 Islington s achievements Islington Council has already achieved a lot through energy management from actively managing corporate energy efficiency since the 1980 s. We have already reduced energy consumption in our own buildings by 15 per cent since 2007, reducing energy bills by 1.8m. The Energy Team runs a system of Monitoring and Targeting (M&T), visiting over 150 sites per annum and making checks and adjustments to heating controls, this continues today with 250k or 2,000 tonnes of carbon dioxide savings identified each year. Headline achievements of the council include: Resident energy advice Helping around 2,400 residents per year to reduce their bills through a free phone advice line, community talks and intensive home visit programme through our Energy Doctors programme. Energy Advice team has sold its services and delivers work in eleven counties outside of London and 14 London boroughs. Our award-winning Seasonal Health Intervention Network (SHINE) service has helped 1,250 vulnerable households in 2011/12 to improve their homes and help them avoid the health problems associated with cold and damp living conditions. Page 7

8 Improving home energy efficiency A 3m boiler replacement programme running from 2012 to 2014 will help vulnerable residents in the borough by replacing old inefficient boilers, as well as creating employment for local residents. Developed a Decentralised Energy Programme to cut fuel bills in the borough and yield both financial and environmental benefits by generating heat and power locally. The Bunhill Heat and Power network will supply over 700 homes, the newly refurbished Ironmonger Row Baths and Finsbury Leisure Centre. Secured funding of 4.9m from the Homes and Communities Agency to deliver cavity wall insulation to 8,000 homes in the borough from Under the Home Energy Efficiency Programme (HEEP), we have insulated 1,468 walls and 569 lofts (April 2011 to June 2012), saving residents over 200,000 per year in fuel bills and reducing energy consumption by 6,103 MWh per annum. Installed solar photovoltaics on 25 Islington housing blocks supplying free electricity to communal areas saving residents money on their rent and management charges, benefiting more than 350 homes. Business support Secured 900k from the European Regional Development Fund (ERDF) for Green Light North London, which offers free environmental support to businesses in north London to help make financial savings and improve environmental performance. Islington s Climate Change Partnership (ICCP), established in 2006, brought together all the organisations with the largest energy use in the borough, including Islington Council and its partners. The Partnership collectively achieved a reduction in CO 2 of 18 per cent /24,000 tonnes CO2between (weather adjusted) equivalent to an estimated 1.79m in fuel bill savings. Islington s Archway Low Carbon Zone ( ), achieved a reduction of 18 per cent/ 5500 tonnes CO 2,/ 400,000 and directly benefited over 1500 households and 50 small local businesses. Council service improvement We met our previous carbon reduction target for the end of 2010/11, reducing CO 2 emissions by 15per cent over 5 years, saving 1.8m in energy costs. The general trend of energy and CO 2 reduction continues into 2011/12 with 0.4% savings in CO 2 We continue to invest in energy saving technologies at our high energy consuming sites. For example recent investment in voltage optimisation equipment at 9 sites has reduced electricity consumption by 7-13 per cent. Officer visits to council buildings have identified and partially implemented savings of 120k since 2008/9. Investment in leisure services helped reduce their energy costs by 22k in 2011/12 Page 8

9 4. The Challenging context of making Islington fairer The United Kingdom faces three major and interrelated energy challenges that Islington must take account in it plans to make Islington fairer: 4.1 Declining fossil fuels The UK reached its absolute maximum rate (peak) of oil and gas production around 2000, declining steeply each year after, meaning we are increasing relying on importing gas. By 2025 the UK will be importing 57 per cent of its oil iv. Ultimately UK natural gas resources will be exhausted meaning we will be reliant on imported gas. Gas supply and prices have been volatile in recent years, with political friction leading to a high risk of gas restrictions from producing countries. We must move towards using energy more efficiently and using energy from renewable sources, preparing ourselves for price increases and reduced energy supply. 4.2 Rising energy prices As a result of stagnant global energy supply and increasing demand, energy prices have soared over recent years and are projected to continue. On a local scale, this will lead to increasing fuel bills and fuel poverty for many, and less disposable income for all. Fuel poverty can be defined as a household that needs to spend more than 10 per cent of their income on fuel to maintain a satisfactory heating regime as well as meeting their other fuel needs (lighting and appliances, cooking, hot water) v. Fuel poverty reduction is a key priority for Islington Council. Solid wall properties pose a significant problem here, with Islington identifying the need for the Green Deal and in particular the Energy Company Obligation (ECO) to fund these expensive measures. Our initial focus is likely to be on levering in ECO for programmes of solid wall insulation in social housing with an eventual aim to develop a large scale retrofit programme including Green Deal finance that aims to stimulate the market and engage other North London boroughs. Local businesses are struggling as their costs rise and consumer demand is repressed. The boroughs annual energy bill for heating and powering our homes and workplaces is estimated to have increased by about 50 per cent from 110m in 2005 to 170m in Improving the energy efficiency of the existing building stock in Islington is essential to combat against increasing energy costs. 4.3 Environmental degradation Local combustion of fossil fuels from road transport and heating systems is the main contributor to London s air pollution. Poor air quality can cause serious health problems, and impacts are most severely felt by vulnerable people. London is particularly vulnerable to flooding, subsidence, overheating and water supply shortfalls. The impacts of climate change will be detrimental to the quality of life of all and particularly to the health and social and economic welfare of vulnerable people vi. It is widely accepted in the scientific community that greenhouse gas emissions generated by humans is affecting the climate and increasing global temperatures. The Intergovernmental Panel on Climate Change (IPCC) climate modelling for the next two decades has projected increases in temperature of approximately 0.2 C per decade. Continued greenhouse gas emissions at or above current rates would cause further Page 9

10 warming and induce many changes in the global climate system during the 21 st century that would very likely be larger than those observed during the 20 th century. vii In response to this, the UK has committed to reduce its greenhouse gas emissions by 34 per cent from 1990 levels by 2020 viii and in 2009 Islington Council committed to reducing emissions by 40% by Reducing the amount of carbon in the atmosphere is must be a part of our energy policy objective of making Islington fairer. 4.4 Built Environment and social factors Islington is home to 206,100 residents ix and is the most densely populated local authority in England and Wales. It is a place of work for about 170,000 people with 46 per cent of businesses occupying office premises and 26 per cent shops and retail. Figure 2 below shows the opportunity and the issues for housing retrofit relevant to Islington. It is relevant to note that 44 per cent of the population rent from a social landlord with the council being the largest single provider housing 31 per cent of the population, this is significantly higher than the London average of 24 per cent x. There is a real opportunity to influence and improve our housing stock and tackle the issue of fairness in the borough by improving the insulation of existing homes. The number of residents that rent from a private landlord is much higher than the national average of 14 per cent but about average for London as a whole. One of the greatest issues in terms of retrofit concerns the huge proportion of residents that live in flats contributing to consent issues for measures such as solid wall, cavity and loft insulation. Another challenging issue concerns the high proportion of the borough that falls under a conservation area limiting the types of measures that can used. These social, economic and environmental factors provide numerous challenges to reducing fuel poverty and delivering energy efficiency works in Islington. Figure 2: Breakdown of Islington dwellings by tenure, area and building type Source: Green Deal Provider Model Business Case for Islington, collated by Marksman Consulting and funded by the GLA Page 10

11 5. Vision, aims and corporate priorities 5.1 Energy vision for Islington Islington council believes that a fairer Islington is better for everyone. To make Islington fairer now and to meet the challenges of the future we are determined to reduce the dependency on private energy suppliers across the borough. In the future our energy will be supplied locally and increasingly from publicly owned renewable sources, our buildings will be highly insulated and efficient, our households, businesses and organisations empowered to act. Islington will be firmly on the route towards a vibrant, resilient, fairer society. In order to help frame the delivery of the vision six key aims have been developed. In the following section each aim is introduced including a description of how we plan to meet the aim over the coming years through specific policies, projects and programmes of work. The Energy Services team will develop an action plan with more detailed objectives and targets and report on these annually starting with a review of 2013/14. Figure 3: Summary of Islington s energy vision Saving the council money Viable, energy efficient businesses Reduced fuel poverty Use less energy, generate energy locally and drive efficient service provision Energy efficient housing stock Improved fuel security Fairer society Local, reliable energy The rising financial and environmental cost of energy, due to our current dependency on declining fossil fuels, centralised energy supply, and inefficient building stock, is a growing burden on the health, financial wellbeing and the prosperity of our community. Page 11

12 Our strategy aims to address each of the root causes and thereby provide a lasting and long-term route to significantly reduce energy use, eliminate fuel poverty and support a vibrant and resilient local economy. All of these aims work together to achieve a fairer Islington. 5.2 Corporate priorities The council has identified six corporate priorities, linked by an overarching priority of fairness, to take work forward over the next four years. These are: Decent, suitable and affordable homes Lower crime and anti-social behaviour Cycle of poverty broken Best start in life for all children Healthy, active and independent lives Delivering basic services efficiently and well. The Energy Strategy supports the delivery of these priorities by working on projects and programmes of work that will improve the affordability of homes by reducing the cost of heating and changing behaviours, breaking the cycle of poverty by reducing those in fuel debt and tackling issues of warmth and delivering basic services efficiently by reducing the council s energy bill so that funds can be directed to those that most need a helping hand. The Energy Strategy aims to deliver the two energy related strategic objectives in the Core Strategy xi : Minimising the borough's contribution to climate change and ensuring we are able to cope with the effects of a changing climate. Reducing Islington s impact on the environment by using resources, including energy, water and other materials, as efficiently as possible. Finally a Fuel Poverty Strategy is being developed and will expand on the current Seasonal Health and Affordable Warmth (SHAW) strategy xii. The strategy will focus on seasonal health and wellbeing, income and the debt challenges associated with fuel poverty. The Fuel Poverty Strategy will sit with the Energy Strategy, with both strategies jointly working to save energy, improve health and reduce residents fuel bills in the borough. The Fuel Poverty Strategy will be written and adopted in Aims of the Strategy AIM 1: Empower resident and promote energy literacy AIM 2: Improve the energy efficiency of homes AIM 3: Energise business to reduce energy consumption and costs AIM 4: Develop local jobs and opportunities in the energy sector AIM 5: Develop community energy networks and services AIM 6: Improve the efficiency of council services and reduce energy costs Page 12

13 AIM 1: Empower residents and promote energy literacy Many households find themselves to be in fuel poverty, currently defined in London as where the total cost of adequately heating and powering a home is greater than 10 per cent of the income after housing costs are deducted. Fuel poverty in Islington was around 22 per cent of all households in 2008 xiii and it is anticipated this will rise to over 30 per cent by 2020 unless strong action is taken to prevent it. However, the levels of fuel poverty in vulnerable and lower-income groups as well as those in private rented housing is likely to already exceed 30 per cent. Rising energy bills are a major worry for Islington s residents. Household budgets are being squeezed by forces largely beyond most people s control such as inflation, reduced wages and increased housing costs, including fuel costs. Therefore, daily an increasing number of residents are faced with the stark choice between heating their homes, putting food on the table and even clothing their children. Those who receive a monthly or quarterly energy bills typically have little idea when and where the energy was used and therefore where the money was spent. With a greater awareness on the cost of using different home services (appliances, lighting, heating and hot water), and a greater understanding of how energy is billed, residents will be able to make informed decisions on where energy and money can be saved by adopting energy conscious behaviour or replacing inefficient items. The Energy Service, Energy Advice and Seasonal Health and Affordable Warmth Teams, will use this strategy and its aims to empower residents to save energy where they can through raising awareness, encouragement, and education. The council will also use its experience and ability to hand hold vulnerable residents, advocating on their behalf and making best use of its resources to permanently lower energy bills by the installation of energy saving measures. The Green Deal and Energy Company Obligations will also benefit residents allowing them to install energy efficient items with no upfront cost. By providing high quality energy advice and changing behaviour through community outreach activities our objective is to minimise energy waste, reduce debt, signpost to other services and grants and obtain best value from energy suppliers. What we plan to do: Seasonal Health and Interventions Network (SHINE) Continue to tackle fuel poverty and reduce seasonal deaths and hospital admissions in Islington. Work in partnership across the borough with statatory and third sector organisations. Deliver a package of interventions designed to improve seasonal health and wellbeing. Carry out 7,000 interventions for 1,500 vulnerable clients per year. Page 13

14 Home energy savings package Visit individual homes of vulnerable residents in the borough. Give advice, support and instruction to help residents heat and power their homes most effectively. Work as an advocate for those in fuel debt, helping them apply for the financial help available. Install low cost energy saving measures to vulnerable residents in the borough. Energy bill reduction service Get residents on the the most appropriate and low cost tariff available to them and maximise use of other fuel discounts. Lobby energy companies, EnergyUK, OFGEM, Consumer Focus, and DECC to allow the council to directly refer residents to the Warm Home Discount. Work with a fuel switching company to tariff switch on behalf of residents. Increase the number of householders using Islington Fuel Switch via telephone and web to switch and save. Conduct a wide promotion of Islington Fuel Switch through a web/leaflet/letter promotion and a presentation/workshop programme. Integrate with other services such as Energy Doctor in the Home, SHINE and Energy Advice services. Monitor other schemes and trials as they are developed to see if they could benefit residents. Energy Awareness Programme Empower, encourage and educate residents to take control of their energy use Maintain Energy Advice Line and provide face to face contact with residents Work closely with Islington CAB and other advice services to help those most in need. Run workshops on energy saving, fuel bills and smartmeters. Visit community groups and centres to help their members. Provide energy saving materials at low cost to residents. Promote local and national grants and discount schemes such as the Boiler Replacement Scheme (2012/14). Contact 18,000 residents by 2020 through our extensive network Page 14

15 AIM 2: Improve the energy efficiency of homes A significant proportion of housing energy consumption relates to maintaining comfortable internal temperatures. Insulating a building, and thereby reducing the energy required to maintain internal temperatures, is one of the main ways to improve the energy efficiency of dwellings. The main measures for improving insulation levels are: loft insulation, cavity wall insulation (CWI), internal solid wall insulation (ISW), and external solid wall insulation (ESW). Improving heating systems and installing user-friendly heating controls are also essential to help manage energy use. In addition, investment in decentralised energy will also improve the efficiency of heating Islington homes. Figure 4 below illustrates Islington s housing retrofit opportunity and Figure 5 the types of insulation measures that may be viable under Green Deal based on the type of stock in the borough. Figure 4: Housing retrofit opportunity in Islington (2012) Source: Islington Green Deal Provider Business Case, Marksman Consulting (GLA funded project 2012) Green Deal and ECO The Government aims to refurbish 6 million homes nationally over the coming years. The Green Deal and the Energy Company Obligation (ECO), which replaces all existing energy efficiency subsidies, had its legal frame work come into effect in October The government suggest the Green Deal will be the biggest single national policy driver for energy saving within housing. Initial expectations are that take up of Green Deal will develop slowly as there is still a lot of uncertainty around the policy, interest rates may be high and there is not currently great consumer interest in the kind of measures offered. On the other hand, the major energy companies have until March 2015 to meet stretching targets for carbon and heating cost reduction under ECO and will need to start to fund works from 2012/13. As a result Islington have decided on a two-pronged approach: in the short-term to lever in ECO subsidy and in the medium-term to work with other London boroughs to develop a large scale programme, including the use of Green Deal to stimulate the market for energy efficiency retrofit. Page 15

16 Figure 5: Types of insulation measures that would be viable under Green Deal for Islington housing stock Source: Marksman consulting, Islington Provider Model Business case, 2012 Based on 6,500 average cost of retrofit in London per dwelling The ECO funding is divided into three categories of funding and we will work towards levering in as much funding as possible from each group to improve the energy efficiency and thermal comfort of our homes. London has failed to attract a proportionate share of previous energy company funding for domestic retrofit due to the high cost of delivery and hard to treat nature of London housing stock. Islington s effort will focus on providing bulk schemes of work and removing internal barriers to make it easier and cheaper for works to be carried out: Affordable Warmth ECO: aimed at residents living in the private sector (rented and owner occupiers) and in receipt of qualifying benefits. We will work to identify residents eligible for AW ECO to improve the energy efficiency of their home, reduce their fuel bills and improve wellbeing. This will be achieved both by using existing outreach channels including SHINE, Boiler Replacement Programme and the Energy Advice Team and accessing Council held benefits data to target residents likely to be eligible. Carbon Saving ECO: aimed at insulating properties with hard-to-treat cavities and solid walls. We will work with housing to draw up schemes of work in Islington s own stock and coordinate with Registered Providers who may be able to draw up schemes in the same area to provide bulk and economies of scale. Council teams in Energy, Housing, Planning and Parking will work together to smooth internal barriers to the delivery of solid wall and hard to treat cavity insulation Carbon Saving Communities ECO: aimed at funding measures in the bottom 15 per cent of Lower Super Output Areas according to the multiple index of deprivation. We will draw up schemes of work in our stock in eligible areas and co-ordinate with other Registered Providers where possible to provide bulk and economies of scale. Page 16

17 Boiler replacement programme We are delivering a 3m boiler replacement programme to help residents in the private sector replace old boilers with an efficient model saving them on average 113 per year xiv. Figure 6 below shows the breakdown of inefficient boilers by housing sector in Islington with the highest number being in the owner-occupier and private-rented sector. Out of the total number of dwellings in Islington (94,000) around 48,000 are estimated to not have a high-efficiency boiler, representing 51 per cent of all dwellings in Islington. The council and Registered Providers have established programmes for replacing older boilers to reduce the risk of failure and reduce resident bills in their own stock. The Boiler Replacement Programme will improve the efficiency of boilers in the private sector in Islington and will run until 2014 particularly helping those in most need of a new efficient boiler. In 2012 from the door-knocking taking place in Islington s Super Output Areas 25 per cent of homes visited have a very inefficient boiler (F and G rated) and have qualified for the boiler replacement scheme. Figure 6: Estimated number of dwellings in Islington without a high efficiency gas boiler by housing sector, 2011 Council-rented; 5521 RSL; 4303 Owner-occupied; 22,658 Private-rented; Source: LBI Stock condition survey date and housing needs data, collated 2012 Environmental Planning Policies The council is developing energy related planning documents and policies to sit below the Core Strategy to tackle the issues of energy use in new builds and redistributing funding to tackle retrofit project and development of heat networks. The key documents linked to energy include: The Environmental Design Supplementary Planning Document (SPD) The Carbon Offset policy The Communities Infrastructure Levy Page 17

18 The council acknowledges that growth in population and employment is likely to make it challenging to reduce energy use, as will the increasing number of smaller households which tend to have higher per capita use. However growth also provides a number of opportunities for securing reduced energy use. The Environmental Design SPD aims to maximise the positive effects of development for people s quality of life and the local environment whilst minimising or avoiding negative environmental impacts. The energy benefits of this SPD include: Reduced fuel poverty from more comfortable new and refurbished homes that are cheaper to run Cheaper, more reliable energy suppliers from decentralised energy networks Reduced building running cots through energy efficient design, future proofing owners and tenants against rising utility bills. Securing sustainable design will also help to address fairness issues in the borough. A Carbon offset policy will be implemented in 2013 which will generate funding for investment in energy efficiency of existing social housing. As part of the Energy Statement building applicants will need to demonstrate how a scheme meets the relevant on site carbon emissions reduction targets by following the energy hierarchy: 1. Maximise energy efficiency 2. Supply energy efficiently using low carbon heating and cooling systems 3. Incorporate renewable energy 4. Offset remaining carbon emissions. Under the Planning Act 2008 and Communities Infrastructure Levy (CIL) Regulations 2010 local authorities in England and Wales are now able to raise funding for infrastructure from new building projects in their area xv. The Core Strategy includes details of the council s strategy for reduction of energy demand through combined heat and power schemes and networks. The council has identified 14 heat network opportunities across the borough, which it intends to implement between 2013 and The total cost is estimated to be 42M with a funding gap of 20M expected to be filled by the CIL. What we plan to do: Green Deal and ECO We will work with Green Deal Providers and energy companies to access the three different elements of ECO to maximise benefit for Islington residents. In the short-term the aim is to lever in as much ECO subsidy in conjunction with other North London Boroughs and Registered Providers to address fuel poverty in the borough and improve the thermal comfort of our housing stock and well being of residents. As the Green Deal market matures investigating the possibility of working with Green Deal Providers to best benefit Islington residents. Helping to make their homes more energy efficient, save money on fuel bills, stay warmer and improve their homes through installation of energy efficiency improvements, such as insulation and heating improvements, at no upfront cost. Page 18

19 Carbon Offset, CIL and Environmental Design SPD If the Carbon Offset Policy is adopted by the council in 2012/13 we will work to develop a suite of suitable carbon reduction projects in the borough. All new developments will need to meet a required carbon reduction target and where this is not possible the developers will need to offset all remaining carbon emissions associated with the building through a financial contribution. The carbon offset fund will be used to reduce carbon emissions from existing stock by targeting specific projects that lower carbon emissions like insulation of cavity walls, solid wall insulation, boiler replacements, improvements to communal heating systems and decentralised energy project work. PLEASE scheme Grants for energy efficiency and security measures are available to all private landlords under the PLEASE scheme (Private Landlords Energy Award Scheme). A grant will be available amounting to 50% of the cost of installing measures to meet the energy efficiency and security standard. We will continue to offer the PLEASE grant to private landlords subject to funding over the coming years. Home Energy Efficiency Programme In we plan to insulate 2600 walls and lofts and will report on progress through the Departmental Performance Indicator and Energy Action Plan. Boiler Replacement Programme In we will be investing 3m in the borough s most fuel poor homes to replace G and F-rated boilers and provide simple, practical insulation measures, helping take vulnerable residents in private tenures out of fuel poverty. This programme will principally install new boilers, heating controls, loft, cavity wall and hot water tank insulation and draught proofing. AIM 3: Energise business to reduce energy consumption and costs and increase competitiveness Islington has a large and diverse commercial, industrial, public and voluntary sector consisting of over 13,000 individual organisations. Supporting local organisations and enterprises to reduce energy use and costs benefits the long term economic sustainability of Islington. It also helps in achieving the London Living Wage, developing skills, and job resilience for local people already in employment. We recognise that different organisation s are impacted differently by energy costs and will require different types of support. Businesses, especially very small business and voluntary and community groups are experiencing steeply rising energy costs that affect their economic viability. Reducing energy use is also one way in which businesses can demonstrate their environmental performance something increasingly important when bidding for tenders and attracting new customers. Islington council has a strong track record in effectively engaging and securing energy savings for organisations of all sizes through internal and contracted services. This has and continues to being delivered through the Islington Climate Change Partnership (ICCP), Archway Low Carbon Zone Page 19

20 (ALCZ), Green Light North London and the Business and Employment Support Team (BEST). The council s approach will be to continue to lead on delivering local support to organisations, maximising the opportunities presented by national and regional schemes. What we plan to do: Islington Climate Change Partnership The ICCP is a business-led initiative bringing together many of the largest private and public sector organisations in the borough to tackle energy use, reduce costs and grow green skills and jobs in the borough. The ICCP aims to work in conjunction with the Green Light North London programme to support both private and public sector organisations to save money and minimise the impacts of rising energy prices, support the development of green skills and jobs within Islington businesses and support Islington businesses to maximise the opportunities of the Green Deal both in terms of accessing this scheme to improve the energy efficiency of their premises, and/or in securing contracts to deliver work under Green Deal schemes. Green Light North London Green Light North London is an environmental business support project supporting small and medium sized businesses (SMEs) to make cost savings and improve environmental performance and competitiveness by becoming more resource efficient. By July 2013 the programme will deliver the following outputs with Islington: enable over 90 SME businesses to improve their environmental performance, divert 103 tonnes of waste from landfill, save over 380 tonnes CO 2 each year, result in cost savings to the businesses of over 300,000 and 60 businesses will be supported to develop and adopt an environmental policy that will help them not only to improve environmental performance and reduce costs in their business but will also help them submit stronger bids when tendering for contracts. The programme is delivered by Islington Council and other delivery partners including North London Business, London Borough of Hackney, London Borough of Haringey, Enterprise Enfield and CE Business Services. The programme is part-financed by the European Regional Development Fund. AIM 4: Develop local jobs and opportunities in the energy sector There are a high proportion of residents unemployed with one third of those of working age not working. Unemployed rate for year olds in Islington is over 20 per cent and the youth employment strategy aims to half youth employment by 2015 xvi. Page 20

21 Our objective in terms of meeting the aim is to ensure the creation of local jobs and training opportunities are considered in all energy related projects, programmes of work and procurements. We will consult with the Business Employment Support Team (BEST) during the planning phase of new areas of work like developing a Green Deal plan for Islington and finding opportunities for businesses in the Islington Climate Change Partnership. Jobs in the energy efficiency sector are one of the growth areas of the economy. The retrofit of homes and businesses funded by Green Deal and ECO is expected to support this growth area xvii : Analysis by the Energy Savings Trust carried out as part of a GLA funded Green Deal Implementation project suggested that a Green Deal programme retrofitting 12,500 properties across four boroughs would support around 38 direct and 33 indirect full time equivalent jobs in the borough with similar numbers in another 3 boroughs. What we plan to do: Green Deal The council will seek to negotiate local jobs, apprenticeships, work experience, training and sub-contracting opportunities in exchange for assistance offered to partner and ensure that all contractors and sub-contractors receive London Living Wage. We will also look to ensure that work provided is of a high quality and a high level of consumer protection is included in partnership agreements. Working in partnership In order to take advantage of the growth in jobs in the sector we will ensure the Energy Service Team and BEST team are in regular communication and consider the following in all energy related projects and programmes of work: Directly employing local staff in schemes to improve energy efficiency and combat fuel poverty Ensuring contractors engaged to carry out energy efficiency and fuel poverty schemes employ local staff and provide apprenticeships, work experience opportunities and training opportunities for local people Ensuring local SMEs are considered for contracts or can access sub-contracting opportunities Ensuring the local workforce is trained to take up opportunities in the sector Ensuring all staff engaged directly or by contractors are paid at least London Living Wage Ensuring that contractors employed to deliver on council contracts also use local supply chains and businesses Jobs and Apprenticeships We will work with employers to develop reliable intelligence about the opportunities in the energy sector and provide information to support schools and colleges to build this into their curriculum offer and careers advice. We will aim to raise the profile of green jobs and develop skills within the borough. The ICCP and the BEST teams will work with businesses to further develop low energy sector skills and job opportunities within the sector. Page 21

22 AIM 5: Develop community energy networks and services One of main root causes of high energy bills is the inefficient supply of heat and power to our homes and workplaces by profit driven international corporations. In order to protect our residents from fuel poverty, and our local economy from this economic burden, we need to develop community energy. By this we mean local, highly efficient forms of generating and supplying heat and power at a price which is fair to residents and local organisations. The council s ambition is to deliver a series of district wide heat networks across the borough to serve a large proportion of the council s buildings and other existing and new buildings with highly efficient generated heat and sources of urban waste heat, delivering lower cost heat for residents. See appendix 1 for a map illustrating the potential for heat networks in the borough. Currently our electricity is generated from large central power stations and transmitted via the national electricity grid over many miles to the borough. The efficiency of the thermal generation of electricity from burning coal, gas and nuclear fuels ranges from 36%-48% xviii. The rest of the energy is lost in the process as heat, typically dumped in cooling towers as it s too far from urban areas where it could be used to heat buildings. Presently, a highly efficient way of generating heat is through the use of Combined Heat and Power (CHP) systems. Local CHP systems generate electricity and capture heat (which would otherwise be wasted) and supply it to a heat network. Provision of heat networks is a critical element in the development of more resilient and secure heat supply to residents, businesses and buildings in the borough. The city offers lots of opportunities to capture otherwise wasted heat from sources in the urban environment such as heat from the London Underground and cooling of electrical substation transformers which will help minimise the urban heat island effect xix Architects impression of the completed Energy Centre in Central Street Page 22

23 What we plan to do: Decentralised Energy Complete installing phase one of the Bunhill Heat and Power scheme, generating cheaper heat to supply over 700 homes on the Stafford Cripps, Redbrick, St Luke s estates and Ironmonger Row Baths and Finsbury Leisure Centre. Children's Services have developed a shared heat network at part of the relocation of Ashmount School to Crouch Hill, serving educational buildings and also a neighbouring housing estate with heat from a new energy centre with biomass boilers, gas boilers and gas CHP. Manage the Bunhill Heat & Power and Crouch Hill energy centres and shared heat networks to deliver efficient low carbon heat and savings to connected residents. Continue to actively explore options to expand the Bunhill Heat and Power network over the coming years and investigate opportunities to capture waste heat from the tube and electricity grid infrastructure in the area. Continue to work with Hackney and the Corporation of London to develop opportunities to expand the Bunhill network further to create an efficient heat network corridor that spans the boroughs. Continue to explore further DE opportunities across the borough and opportunities around our large communally heated estates, leisure centres and council buildings. Develop the viability options for delivering schemes in the West close to Kings Cross and to the North in Archway in the next 5 years. Continue to work with developers of new building and owners of existing building to explore possibility of connection to the expanding network(s). Investigate the potential to become a small electricity provider or sell excess electricity back to the national grid. Heat metering Heat meters are devices used to measure the thermal energy provided by a source, or delivered to a use by a liquid. Explore the opportunities and benefits that heat metering could bring to the borough. For example we are working with the GLA, Future Cities Demonstrator project and bidding for work to extend the Bunhill decentralised energy scheme and included heat meters in this proposal. Work with housing services to investigate the benefits of installing heat meters in communally heated social housing blocks. Through programmes like SHINE investigate the benefits of using heat meters to help identify and support vulnerable residents in the borough. AIM 6: Improve the efficiency of council services and reduce energy costs The council provides a range of services from education to social services, waste recycling to leisure. Many of these services are delivered from different types of buildings, such as schools, offices, depots and leisure centres. The provision of heat and power for these buildings and services equated to around 100 GWh in 2011/12 and cost around 6.3m with resulting carbon emissions of approximately 36 ktco2e. In addition the council is legally obliged to pay for the carbon emissions resulting from its energy consumption. This cost 260k in 2011/12, but could be increased by 3-5 times as much by For these reasons we are committed to deliver council services efficiently by minimising the energy bill and improving the council s resilience to rising and volatile energy prices. The council has been actively managing its energy efficiency since it established an Energy Management Team (EMT) in the 1980s. The EMT work with the council s departments and partners to identify and implement energy saving projects. Page 23