Energy
| Making the most of the new framework |
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| Written by Alan Aldridge, Executive Director, ESTA, 2008 | |
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There are a number of pieces of energy-related legislation either coming into effect over the next few months or being planned for the near future. Alan Aldridge looks at the obligations - and the opportunities - for improving the energy performance of buildings.
After a long implementation period, the final elements of the Energy Performance of Buildings Directive (EPBD) will slot into place in the coming months. The extension of emissions trading to larger - but non-energy-intensive organisations - will begin within the next year and smart metering will be rolled out shortly after. All of these have compliance issues for facilities managers to address, but they also offer new opportunities to progress the energy efficiency agenda at all levels of an organisation. Energy Performance CertificatesThere has been some confusion about the implementation of this particular measure. Energy Performance Certificates (EPCs) are now needed for virtually all buildings when constructed, sold or let. But they are only needed at these times. So if you are not planning to sell or re-let part of your estate, then an EPC is not required. However, a number of major property companies are undertaking a systematic process of certification for the whole of their portfolio so that the lack of a certificate does not slow down any property transactions. EPCs measure the efficiency of a structure 'as designed' and these 'asset ratings' are divided into bands from A-G. These bands indicate what the building is capable of achieving if it is run very well; the intention is that purchasers or tenants can evaluate the relative merits and costs of occupying various properties. As a rule of thumb, ESTA has calculated that for buildings that differ by one rating band, there is typically a difference in energy expenditure of around £10 per square metre of useful floor space. EPCs provide a means to programme upgrades to building stock in terms of systems and structural components, especially for organisations with a portfolio of sites. And more efficient buildings are expected to command a premium on rental and sale value, especially as the system becomes better known. So EPCs can indicate those buildings that need attention in order to optimise asset values. Display Energy CertificatesDisplay Energy Certificates (DECs) only apply to organisations that meet the following three criteria:
DECs must be renewed annually. Like EPCs, they benchmark buildings within their particular type via the A-G banding of performance. DECs use an 'operational rating' to indicate how well a building is being run. This operational rating is relatively simple to calculate - it is the total annual energy consumption (expressed in greenhouse gas emissions) per unit area of a building. While there are a number of detailed issues about how to arrive at that final figure, the important point is that operational ratings can be improved by attention to energy management. At present, DECs only apply to publicly funded bodies, but there are moves at European level both to extend the practice to the private sector and to make it applicable to smaller buildings. Many private companies are considering using the DEC on a voluntary basis. EPCs and DECs are accompanied by recommendations or advisory reports that suggest improvements to the building, classified in terms of payback period: short-term (less than three years), medium-term (4-7 years) and longer-term. Only accredited assessors can produce EPCs and DECs and these are people who are been trained by a government-approved accreditation scheme. It is possible for in-house staff to be accredited, which makes the process simpler and easier, especially for multi-site organisations (details can be found at the scheme website: www.ndepcregister.com ). The use of effective metering and monitoring equipment will make the data collection - and its verification - much easier. And several manufacturers, particularly of automatic Monitoring & Targeting (aM&T) systems, are currently undergoing evaluation so that these certificates can be produced directly from their systems. DECs will be used in England and Wales - and Northern Ireland is expected to take a similar approach. However, Scotland will be using their own version of EPCs for display as well. These are likely to be more expensive than DECs but will have a 10-year life. Air conditioning inspectionsThe final part of the Directive to come into force concerns the regular inspections of air conditioning - once again to cut down on energy waste. For systems with an output of more than 250kW (and all systems on a single site must be aggregated together) the inspection must be completed by 4 January 2009. For smaller systems (of 12kW or more) they must be carried out by 4 January 2011. Once again, this has to be done by an accredited assessor. The Carbon Reduction CommitmentThe Carbon Reduction Commitment (CRC), announced in the 2007 Energy White Paper, extends the concept of carbon trading beyond the energy-intensive industries and introduces it to larger, private and public sector organisations. The qualifying threshold is an "annual electricity consumption from all installed half-hourly [both mandatory and voluntary] meters in excess of 6,000MWh". That means any with an energy bill of more than about £500,000. Participation is mandatory and is due to start in the next 18 months. Those included will have to buy allowances to cover their carbon emissions. However, the scheme is due to be 'revenue-neutral' for the government, with the funds raised being recycled to participants. Accreditation to the Carbon Trust Standard and the installation of aM&T systems are ways in which organisations can gain a large share of these recycled funds - so these avenues should be investigated as soon as possible. The CRC will operate in the same manner in all the countries of the UK. Rollout of smart metersThe government has recognised that accurate information about energy consumption patterns is a prerequisite to managing it effectively. So the Energy White Paper proposed providing all but the smallest businesses with smart meters to help them actively manage their energy usage. While ESTA has some reservations about the actual practical steps the government is taking here, it believes that the concept is entirely correct. The current proposals suggest a cut-off at a total annual utility spend of around £35-40,000. ESTA believes the economic figure is much lower at £7,000-8,000 (possibly as low as £3,000 on some sites). We are pleased that BERR has now re-opened this debate and we are very hopeful that many smaller sites will be mandated to receive the benefits of smart meters within the next five years. Alan Aldridge is Executive Director of the Energy Services and Technology Association (ESTA). Further informationESTA represents over 100 major providers of energy management equipment and services across the UK. Please visit www.esta.org.uk  Figure 1. The business case for investing in smart metering according to the number of sites and total annual utility spend. |
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