Energy is a core issue for all of us

As we are enter a world of high energy prices, with legislative, financial and stakeholder pressure to reduce energy consumption, energy efficiency is no longer something that can be brushed under the carpet.

The Prime Minister's initial intention to include energy in the formal title of the revamped DTI - which became the Department for Productivity, Energy and Industry for a week - highlighted his view of the importance of developing a sustainable energy policy that does not impact on industrial competitiveness.

The urgency is clear: driven by fossil fuel emissions, global warming is expected to cause significant changes in climate, even in the UK. Tony Blair has made climate change a priority for the UK chairmanship of the G8 group of major industrialised nations, and also for the British presidency of the EU Council of Ministers. The Government has accepted that we need to reduce emissions by 60 per cent by the middle of the century.

At the same time, energy supplies in general are coming under pressure from rapidly increasing global demand - hence the dramatic increases in prices over the last 18 months. Producers are having trouble pumping enough fuel out of the ground. And with more and more of our gas supplies coming from Russia, the UK is nearly at the end of a very long pipe.

A priority

At both national and European level, measures are being introduced to tackle these twin issues of security and environment. Several of them will have an immediate impact on British business and public sector users.

In the short-term, the most important is probably the implementation of the Energy Performance of Buildings Directive (EPBD). This EU Directive is due to come into force throughout the Community by January 2006. Its stated aim is to cause a step-change in the energy efficiency of buildings - in fact to reduce building energy consumption across Europe by over 20 per cent.

With buildings accounting for about half of all carbon emissions, a saving of that magnitude could make a substantial contribution to meeting increasingly tough environmental targets. And the Government's recent Energy White Paper expects half of all reductions to come from energy efficiency.

The Directive

For facilities managers, one of the key points will be the need to produce an energy performance certificate for their buildings. Whenever a building is constructed, sold or let out it will require an Energy Certificate and this will apply to almost every building 50m2 or more. This 'asset rating' certificate will reflect the intrinsic capability of the building, for example the fabric of the building and its structure, and represents what the building is able to (but may not actually) achieve. In addition, for those buildings with more than 1,000m2 of useful floor area - and providing public services to a large number of the public - there will need to be an 'operational certificate' prominently displayed. This rating will be based on actual metered energy consumption data and will reflect how well the building is utilised and managed. The exact meaning of "public" is still under discussion between different interested parties and it is expected that the Government will make a decision on this during the summer of 2005. The assessment will have to be carried out by "independent experts" although as yet the accreditation process for these experts has not been finalised.

These certificates will need renewal at least every ten years - they will not be a one-off which can be forgotten about immediately afterwards. The introduction of mandatory performance certificates will mean that energy will be a factor every time a building is re-let or sold. With the increasing pressure to be "green and lean" - this is now a boardroom issue after all - energy efficiency will clearly be a factor in the purchase/rental decision, especially as fuel prices show no signs of easing.

The Directive also focuses on the major items of energy consumption within buildings - specifically the Heating, Ventilating and Air-Conditioning (HVAC) systems. In the case of air-conditioning, the Directive requires that governments establish regular inspections for all plant with an effective rated output of more than 12kW. Inspections must assess the efficiency and size of the systems compared with the cooling requirements of the building. Users must be given advice on possible improvements or replacements - or alternative solutions.

With respect to heating systems, there are currently two ways of satisfying the Directive. In one, regular inspections of boilers rated 20-100kW will have to be carried out. In the other, governments have to ensure that users are given sufficient advice on replacements, modifications and alternative solutions that will reduce carbon emissions. While this second option may not appear nearly as effective, any government choosing it will have to justify to the European Commission that it does generate as many savings as the first.

Refurbishment projects

Another feature of the Directive is that whenever buildings with a useful area of more than 1,000m2 undergo major renovation, the energy systems are upgraded at the same time "to incorporate all cost-effective energy efficiency measures". In addition, new buildings have to meet certain performance requirements. Before any new construction of more than 1,000m2 useful floor area is begun, a number of energy-saving alternatives will have to be formally considered:

Combined heat and power (CHP);
District or block heating or cooling;
Heat pumps;
Decentralised energy systems based on renewable energy.

Many of the changes will be introduced by successive revisions to the Building Regulations Part L.

Pressure is on

So there is legislative, financial and stakeholder pressure to reduce energy consumption. We are entering a world of high energy prices with an imperative to reduce carbon emissions. How to 'square the circle'? Well, the simplest way is to use less energy. That does not mean cutting back on operations or comfort levels - it just means using energy more efficiently. Estimates vary on the potential for energy savings but figures of 20 per cent are commonplace. Some organisations will be able to save more and some less, but virtually no one is perfectly efficient. New developments and new technologies are opening up new opportunities for savings.

Take automatic Monitoring & Targeting (aM&T). This is revolutionising what has traditionally been a repetitive and tedious collection and analysis of metering data. It is to M&T what the introduction of the PC was to office administration. It takes the drudgery out of the vital task of measuring and interpreting energy consumption patterns. aM&T frees the facilities manager to concentrate on the proactive tasks of implementing programmes that actually deliver results. Five years ago this technology was not available: today it is generating substantial savings for some of the country's largest (and smallest) commercial energy consumers. The introduction of low-energy lighting in offices is another success story - again, savings have been achieved through the development of new technology. This is why the Energy Performance of Buildings Directive puts so much emphasis on regular assessment of energy plant and periodic recertification of building performance.

It has to be said, though, that technology is only part of the answer: control and management are equally important. Everyone knows of instances where expensive Building Energy Management Systems (BEMS) have not been properly maintained with the result that they do not effectively control the energy systems. Controls have to be appropriate: sometimes stand-alone controllers can be more cost-effective than all-embracing, building-wide systems. Big is not always beautiful: it is a question of effectiveness, or fitness for purpose.

And of course, at the end of the day, the most efficiently run buildings are those where the facilities manager and their team have been able to target specific improvements and implement them. Technology exists to make this easier, whether in planning, through aM&T, or implementation via a range of control devices and systems. The difference between an efficiently run building and one that wastes energy is not just a matter of the technology, although this helps. It depends on the skills and commitment of the managers - and the support they get from senior staff within the company.

Ever more urgent

The need to reduce energy consumption, cut carbon emissions and improve security of supply (and with it achieve some price stability) is becoming ever more urgent. The new energy minister has plenty to keep him occupied. At a European level, new strategies on security of supply and energy efficiency are being debated by the European Parliament and the Council of Ministers at the moment. The Commission has promised to publish a green paper on energy efficiency in the coming months. The second - expanded - phase of the European Emissions Trading Scheme is being prepared at the moment and it is only a matter of time before carbon prices start impacting far more directly on everyone's energy bills.

And when all is said and done, inefficient use of energy is waste, pure and simple. The best-run organisations in both private and public sectors are those where waste is eliminated wherever it occurs.

Key points of the Energy Performance of Buildings Directive

Minimum energy performance standards are to be set for all new buildings;
Larger existing buildings will have to meet minimum energy standards when refurbished;
All buildings will have to have an energy certificate (with frequently visited buildings providing public services being required to prominently display the certificate);
Periodic recertification of buildings (maximum of ten years);
Regular inspection of boilers and air- conditioning systems.

Further information
Please contact:
ESTA
PO Box 77
Benfleet
Essex SS7 5EX
Tel: 07041 492049
www.esta.org.uk

< Prev		Next >