Community Energy Saving Programme (CESP) An overview presentation

1. Community Energy Saving Programme (CESP) An overview presentation Tim Peters / David Rizzo Friday 11th March 2011

2. Contents Background How it works Opportunities Strategy CESP In Practice Questions

3. …CESP, a broad definition.. TheCommunity Energy Saving Programmeconsists of significant packages of energy efficiency measures to households in low-incomecommunities. The programme is designed to: - Bring real CO2 and fuel bill savings - Foster engagement at local and community levels - Help to inform future approaches to energy efficiency Sept 2009 Dec 2012 All Measures Installed and agreed with Ofgem

4. ..at the core of the Programme.. Improved energy efficiency for communities in the lowest 10% income deciles in England; 15% in Wales and Scotland A wide variety of measures available CESP Key Features Whole house and community approach Saving of nearly 18m tonnes of CO2 emissions £350m of energy efficiency measures Envisage to benefiting some 90,000 households

5. ..emphasising the role of the community.. Community partnership has been at the heart of CESP Suppliers and generators work with community partners and local authorities to deliver measures. 1 3 2 British Gas and local authorities identify eligible areas Local groups help to engage communities on the ground British Gas manages the scheme, provides products, services, and financial support Each and every party or group can add value at each stage of the process

6. ..British Gas’ involvement.. ..The largest CESP funds available - 3 times greater than next largest obligated partner equalling 32% of the total.. ..an estimated £120m commitment supporting CESP projects over 3 years.. ..representing a Carbon reduction target of 5.7 million tonnes of CO2 from the poorest communities in the country.. ..the first energy supplier to announce the first ten communities to benefit from the scheme in 2009.. ..the first scheme in the country in Walsall.. ..currently 53 CESP schemes underway throughout Britain and to date 54% of the obligation has been contracted..

7. ST ST WV TF HP SN ..identifying a potential CESP area.. North East 265 Scotland 975 East Midlands 187 North West 768 East England 114 West Midlands 491 Yorkshire 431 London 795 Wales 284 South East 104 South West 93 CESP zones split per Region

8. ..using the Index of Multiple Deprivation.. Each county has an IMD, designed to identify small concentrations of multiple deprivation. Each IMD is made of a different range of indicators, including: • Income • Employment • Health and disability • Education, skills and training • Barriers to Housing and Services • Living environment • Crime The Income indicator has however been a driver in the selecting process.

9. ..CESP measures offer plenty of variety.. Solid Wall Internal Insulation Fuel Switching Drought proofing Solid Wall External Insulation Cavity Wall Insulation Biomass Hydro Solar PV Solar Thermal Wind Heat Meters Flat roof and Under roof insulation Loft Insulation New Heating Control Heat pumps

10. ..and they score differently too.. Primary Measures Secondary Measures Solar Thermal Loft top up Replacement Boiler District Heating District heatingBiomass (low heat load) Draught proofing Heat Controls Dist heating Biomass: Virgin Loft Solid Wall /Fuel Switch PV Glazing Virgin Loft & Heat Controls from Fuel Switch High Heat Load SmallBiomass Solid Wall & Fuel Switch 4 Bed 60% + 3 Bed Non Terrace 45% + 2 Bed Terrace 3 Bed Terrace 30% + Less than 30%, minimum volume 100 homes Property Size 1 & 2 Bed Flats Penetration

11. ..to illustrate.. Let’s assume a Local Authority has a housing stock of 603 Properties: 362 properties will have to be included to achieve a 60% penetration rate. 115 Mid Terrace 3 bed 115 End Terrace 3 bed 132 Semi detached 3 bed

12. ..if we then apply.. Total Scheme Cost £3,540,000 Loft top up British Gas (£3,383,000) Fuel switch from electric heating Client Contribution £157,290 Exterior Wall Insulation Saving 173,491 tonnes of Carbon Additionally adding Heat pumps instead of a gas fuel switch would make it a free scheme A fuel switch from Coalalso improves the funding

13. ..in practice – thermal images.. Heat loss before the property is treated: Heat loss upon completion:

14. ..in practice – the comparison.. Before Treatment After Treatment

15. ..Walsall; Britain’s First Scheme.. Working in partnership with Walsall Council and WHG, their residents were the first in Britain to benefit from a CESP scheme The properties have, and still are being given external cladding and loft insulation to reduce heat loss, as well as new, energy efficient boilers As a result, the residents are benefiting from warmer homes, lower bills and receive advice from experts about simple steps they can take to save even more energy

16. ..a huge boost for the whole community.. A very happy Mrs. York outside her newly renovated home. “ I haven't had the heating on hardly since it was fitted, only for the hot water ” Mr Whittaker (centre), one of the first customers to be completed, pictured with Joan Ruddock MP, Fred Bell WHG Chairman and Gary Fulford WHG Chief Executive. Saving her at least £28 per month!

17. ..in Wales… The Carmarthen CESP scheme is jointly funded by CESP and Arbed and is a very good example of what can be achieved. The scheme will deliver over 100,000 tonnes in Carbon Savings Both council tenants and private home owners will have the ability to: 1. Replace G-Rated boilers 2. Add External Wall insulation 3. Add Loft insulation – both virgin and top up 4. Add Cavity Wall insulation All these will improve the SAP rating of their homes at highly subsidised prices.

18. ..in North Wales… The Cartrefi Cowny scheme is one of the largest with 50 upgraded properties. CO2 Savings on this scheme reach 6,948 tonnes in Carbon savings. Achieving a U Value below 0.35W/m2K from U values over 2.0W/m2K previously.

19. Q&A

20. Contact Information David Rizzo Head of Energy Solutions, Wales & South West British Gas Community Energy 07979 567394 david.rizzo@centrica.co.uk britishgas.co.uk/communityenergy