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

1990 2012 2017 2020 2025 20500%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

Today20182020

2030

2040

2050

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

Today20182020

2030

2040

2050

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• Build

ings, 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

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

• Buildings:- Behaviour change- BMS/controls changes- Metering information more available- Maintenance, retro-commissioning- Major plant upgrades- Renewable/low carbon technologies- Fabric upgrades

• Transport- Identify “hotspots” by business group- Behaviour change- Technological change- Procurement change

Expected Recommendations

Our ESOS Audit

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 Portfolios16 404 BANCROFT1318

511 NURSERY14 EX STA TRAVEL17 GLOBAL VILLAGE

8 IT21 IRC BUILDING

1 GEOGRAPHY3 LAWS

15 CATERING BUILDING/OLD CATERING9 MATHS

10 PEOPLES PALACE7 FOGG/SU/COMP SCIENCE4 ARTS

19 PHYSICS12 JOSEPH PRIESTLEY

2 LIBRARY22 Queens' Building

6 FRANCIS BANCROFT20 ENGINEERING23 Student Union24 Multi Faith Centre25 Computer Science

5

11 81

3

9

10

7

4

12

2

6

Commercial Hotel Retail Industrial

EXEMPLARCAPTURE QUICK WINS

DEFER MARKET

Amen

abili

ty

Improvement Potential

AssetMAP

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