Monthly Archives: September 2011

Updated list of LDA Climate and Energy projects

September 2011: Papers from a recent LDA Board Meeting include a Mayoral approval note (Public Item 03.5.7 – Appendix 7 Climate Change Mayoral Direction) providing detail on the transfer of LDA climate and energy projects over to the Greater London Authority (the LDA is expected to be abolished on 1 April 2012). Included in the note is a useful funding breakdown of the total £3.795m budget of seven current programmes (Low Carbon Zones, RE:FIT, RE:NEW, Decentralised Energy Masterplanning, Better Building Partnership, London Low Carbon Capital and the Centre for Low Carbon Technology).

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CESP Update for London

7 September 2011Ofgem’s half yearly update (to the end of June 2011) on energy companies progress against their targets under the Community Energy Savings Programme (CESP) has just been published. However, the results provided in the update only refer to the 201 UK-wide ‘proposed‘ schemes, as opposed to the schemes actually ‘approved’ by Ofgem. With reference to London, the CESP update reports that 15 schemes have been proposed. In terms of actual measures delivered, London schemes in operation (an unknown number), have installed 1047 measures in 751 dwellings. The CESP Annual Report published earlier this year noted the slow progress of the programme to date: the update goes on to highlight the difficulties in getting schemes of the ground as even if all of those proposals put forward by energy companies to Ofgem for approval came to fruition,they would only represent around 50% of the CESP target, with only just a year left of the programme to go.

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Revising London’s Housing Strategy

5 September 2011: The Mayor last week launched a consultation with the London Assembly on initial proposals for  a revised London Housing Strategy.

The Mayor’s first Housing Strategy was only finalised in February 2010. However, the GLA’s website reports that as “there have been major changes to the allocation of government funding for housing and there are significant changes proposed in the Localism Bill, including significant new housing and regeneration powers for the Mayor… a number of areas have been identified where change is needed, and a revised housing strategy is being produced.” The consultation however does go on to state that this “document presents the Mayor’s initial policies and proposals for a new strategy and is not, therefore, a full draft housing strategy. As the current strategy was published only last year, this document focuses on those areas where there will be significant change; the fact that something from the current strategy is not mentioned does not mean it is not still important or will not appear in the new one. This document should therefore be read in conjunction with the 2010 strategy document.”

The consultation states that the 2010 Strategy “contained a large number of policies on design and green issues. Most of those relating to design, including the key environmental policies relating to new homes, are now part of the design guide. Policies on greening existing homes included in the 2010 Strategy will similarly be incorporated into the Mayor’s new single London environmental strategy.”

The only comments in the initial proposals document in relation to improving the energy efficiency homes relate to the Mayor’s proposals to:

  • ensure that new homes will be built to higher design standards and a minimum of Code for Sustainable Homes (CSH) Level 4
  • set out his policies on greening existing homes in the forthcoming single environmental strategy.

The timeline for Strategy is consultation with the Assembly by 28 October2011; this will be followed by a public consultation version of the full draft of the new London Housing Strategy towards the end of the year, with a final proposed draft submitted by the Mayor to the Secretary of State in mid-2012.

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Mayoral Funding to Low Carbon Initiatives

September 2011: Details of the Mayor’s recent funding support to London South Bank University’s (LSBU) Centre for Low Carbon Technology which will “enable emerging low carbon technologies to be researched, trialled and demonstrated in a full scale urban environment” and also the Better Buildings Partnership.

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Warm homes in the private-rented sector – a toolkit for local authorities

September 2011: This toolkit produced by National Energy Action (NEA) provides information on how local authorities in England and Wales can most effectively use the Housing Health and Safety Rating System (HHSRS) to reduce fuel poverty in the private-rented sector.

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A new single ‘London Environment Strategy’

5 September 2011: The Localism Bill continues its passage through the House of Lords today, moving to Report Stage. Amongst the many changes proposed in the Bill there is a more modest, but important, clause in the Bill regarding the six environment strategies that the Mayor is currently statutorily required to produce.

Clause 212 of the latest version of the Bill calls for the Mayor to produce a ‘London Environment Strategy’ which “must contain a general assessment by the Mayor of the environment in Greater London, so far as relevant to the functions ofthe Authority or of the Mayor” containing “provisions dealing with the Mayor’s policies and proposals in relation to each of the following matters in relation to Greater London—(a) biodiversity;(b) municipal waste management;(c) climate change mitigation and energy;(d) adaptation to climate change;(e) air quality; and(f) ambient noise.”

Importantly, the Bill goes on to repeal the duty on the Mayor to publish the six separate environmental strategies. Hence it is proposed that all material/policies contained within these six individual strategies will be consolidated into the new single London Environment Strategy. The Communities and Local Government (CLG) Secretary of State may give guidance to the Mayor on the content and preparation of this new strategy and may also give the Mayor direction as to its policies. Also proposed in the Bill is a new power for the London Assembly which is the ability to reject any of the Mayor’s statutory strategies if a two-thirds majority of members vote against publication.

Despite the changes being proposed in the Bill the Mayor stated back in June that the climate change mitigation and energy strategy, the climate change adaptation strategy, the municipal waste strategy – and two further non-statutory environment strategies on business waste and waterall of which are at draft stage –  will all be published by the end of the calendar year.

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Transport for London update energy and climate activities

5 September 2011: Transport for London’s latest annual report has just been published. The report includes a brief update  on TfL’s activities to help reduce London’s transport sector contribution to climate change including: promoting the uptake of car club membership, supporting the use electric vehicles,  research and trials into low-carbon bus technology, and investing in hybrid (diesel/electric) and also hydrogen vehicles.

TfL was recently awarded for its activities to promote low-carbon buses and the report states that Buses contribute five per cent of the total transport CO2 emission in London and the largest share, nearly 40 per cent, of TfL’s own CO2 footprint. The latest bus technology will help meet the Mayor’s goal of a 60 per cent CO2 reduction by 2025 compared with 1990 levels.”

The report also mentions that London Underground is looking at ways to source decentralised and renewable energy and that new procurement processes are being set up so LU can work with energy companies under the Government’s Feed in Tariff. More detailed information on the full range of TfL’s climate and energy related activities can be found in TfL’s last environment report, published in December 2010.

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Olympics Drops Full Carbon-Offset Plan

2 September 2011: Bloomberg have reported on how the Olympics will now not use international emissions trading programmes to help account for the entire CO2 emissions associated with the construction and operation of the 2012 games.  BP Target Neutral will however continue to develop carbon offset programmes to help account for game-time related emissions for the period of the Olympics and Paralympic games.

Further information on approaches taken by the Olympics to reduce emissions are set out in the London 2012 Sustainability Report and the Olympics Carbon Footprint Study.

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New Low Cost Loans to fund retrofitting of London’s buildings

2 September 2011: The Mayor announced today that “Hundreds of public buildings in London including schools, libraries and hospitals are set to get a green makeover, with low cost loans from a new £100 million fund”. The Mayor has agreed a £50 million contribution from the London Green Fund to set up the new London Energy Efficiency Fund (LEEF). LEEF will be led by Amber Infrastructure Limited and the press release states that “Amber has already expanded the fund’s value with upfront commitments for £50 million from RBS and the company is expected to leverage in further amounts over the life of the project.”

Further information provided at www.leef.co.uk sets out that eligible projects will aim to deliver:

  • Energy Savings Ratio of at least 20% compared to conditions prior to investment
  • Each £1500 LEEF Investment should achieve a reduction of at least one tonne CO2; and that
  • The pricing of LEEF’s loans will be “dependent on the credit rating of the borrowing entity and the amount and level of security provided; the aim is to be able to structure the transaction so that a highly competitive rate can be offered.”

A list of eligible technologies that qualify for funding are also set out there. A brochure posted at the LEEF website also makes some interesting comparisons to how the fund will operate in comparison to the existing funding made available to public sector organisations through the Carbon Trust’s Salix programme. Further information on RE:FIT can be found here.

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Connecting Decentralised Energy to London’s Electricity Network

September 2011: Back in May Ofgem issued an ‘open letter’ requesting views from the distributed generation (also commonly called decentralised generation) industry of their experience of connecting projects to the local electricity network. Ofgem’s letter sets out that they:

“consider  that the efficient development  of distributed generation  could play an important role in addressing a number of key policy issues.   These include helping the UK to achieve its targets for reduced carbon emissions as well as improving the  security of energy  supply and  addressing  fuel poverty issues. To this end,  we have endeavoured to ensure that  those seeking to connect  distributed  generation to the network  do not encounter any unnecessary barriers resulting from the way that the electricity distribution networks are operated and regulated.”

The increased use of decentralised energy is a key element of London’s energy strategy, and the Mayor has established a target for 25% of London’s heat and power to be sourced by localised DE schemes by 2025.

Ofgem have now published a useful ‘High Level Summary’ of responses which highlights the difficulities that DE operators experience when bringing forward a project. This includes the:

  • Limited and inconsistent distribution network data available to generators
  • Costly processes ranging from connection assessments to legal fees
  • Prohibitively complex grid code requirements placed on these smaller distributed generation systems.

No regional aspects are highlighted in the findings – that is – is it any harder/easier to connect DE to London’s electricity distribution system (operated by UK Power Networks in the main and also SSE in SW London) than anywhere else, however, if London is to significantly increase its use of DE, the numerous barriers identified by smaller generators that currently exist need to be removed.

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Government Guidance on GHG Emission Factors

1 September 2011: DECC and DEFRA have issued their latest 2011 GHG Conversion Factors Methodology Paper for Emission Factors which, amongst many fuel types, includes detailed guidance on the important issue of grid (electricity) emissions factors: these represent the average CO2 emission from the UK national grid per kWh of electricity used at the point of final consumption (i.e. transmission and distribution losses are included). Much more in the paper.

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Islington Residents save cash on energy bills

1 September 2011: Over 1,500 Islington households will be warmer this winter and save a total of £322,000 on their fuel bills following a breakthrough energy saving scheme being trialled in the Archway Low Carbon Zone.  Further information on Islington news release here.

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