11 th April 2006

1. Some Observations on UK Energy Policy 11th April 2006 • Keith Tovey (杜伟贤) M.A., PhD, CEng, MICE CEnv • HSBC Director of Low Carbon Innovation: • School of Environmental Sciences CRed

2. Today’s Resolution • This meeting urges all levels of government to put in place legislation and policy requiring the use of renewable energy technologies in all new buildings, re-building and renovation. • Encouraging home owners to invest in greening their homes through incentives in property tax, for example, stamp duty and council tax rebates for improving home fuel efficiency. • The introduction of a single “Code for sustainable Building” so that developers have a clear target for best practice environmental standards for new homes.

3. Today’s Resolution • This meeting urges all levels of government to put in place legislation and policy requiring the use of renewable energy technologies in all new buildings, re-building and renovation. • The introduction of New Building Regulation to reduce energy use in new homes by one quarter now, and a further one quarter in five years, with a zero carbon goal. • New Regulations came into force 6th April 2006 • Establish a Home Condition Report for all house sold and upon change of tenancy, which would include an Energy Report that provides consumer friendly information and simple advice on beneficial energy efficiency changes and how to make them happen easily. • Home Information Pack – already in pipe line

4. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

5. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

6. Some Observations on UK Energy Policy Energy: An Overview 1 TW equivalent to 1 billion 1 bar electric fires Projected Saturation Population in 2050 -- 10000 M consumption averages current UK value Requirement in 2050 = 50 TW Is this sustainable? Are we sustainable at our present level of consumption?

7. Some Observations on UK Energy Policy Energy: An Overview ~ 5 kW Per Capita Consumption in Watts • Transport Energy use has risen 10.5% in last decade • Domestic use has risen by over 10%

8. Some Observations on UK Energy Policy Current UK/EU Energy Policy – a review • Electricity consumption is 17.5% higher than in 1997 and rising at 1.7% per annum • Avoiding a rational energy policy in 1997 is making decisions much more difficult now • 2002 Energy Review • 2003 Energy White Paper • Low Carbon Future • Energy Security • Fuel Poverty • April 14th 2006 Consultation on Energy Review 2006 ends

9. Some Observations on UK Energy Policy Current UK/EU Energy Policy – a review • 2000 Building Regulations and revised SAP Rating 2001 introduced 1st April 2002 • 27th March 2001: NETA introduced – had drastic effect on renewables and CHP • 1st April 2002: Renewables Obligation started – has potential to promote renewables, but biassed towards wind and large scale. • 1st January 2005 – EU-ETS introduced • 1st April 2005: BETTA replaces NETA • 6th April 2006: New Building Regulations introduced • RTFO • Heat Obligation?

10. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

11. Our Choices: They are difficult • Do we want to exploit available renewables i.e onshore/offshore wind and biomass. Photovoltaics, tidal, wave are not options for next 20 years. • If our answer is NO • Do we want to see a renewal of nuclear power • Are we happy on this and the other attendant risks? • If our answer is NO • Do we want to return to using coal? • then carbon dioxide emissions will rise significantly • unless we can develop carbon sequestration within 10 years which is unlikely If our answer to coal is NO Do we want to leave things are they are and see continued exploitation of gas for both heating and electricity generation? >>>>>>

12. Our Choices: They are difficult • If our answer is YES • By 2020 • we will be dependent on around 70% of our heating and electricity from GAS • imported from countries like Russia, Iran, Iraq, Libya, Algeria • Are we happy with this prospect? >>>>>> • If not: • We need even more substantial cuts in energy use. • Or are we prepared to sacrifice our future to effects of Global Warming? - the North Norfolk Coal Field? Do we wish to reconsider our stance on renewables? Inaction or delays in decision making will lead us down the GAS option route and all the attendantSecurity issues that raises.

13. The Problems of “Comfort Taking” • Predictions of conservation measures in homes are rarely realised. • Loft insulation • Could reduce heat loss by a factor of 8 • Often nearer 2 to 3 • Increased comfort • Same situation with electrical appliances • Often seen as “not my problem” • How far does one have to drive in a small family car (e.g. Toyota Corolla 1400 cc) to emit as much carbon dioxide as heating an old persons room for 1 hour? 1.6 miles

14. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

15. The Building Regulations – how standards have changed over time No standards for Energy before 1976 Insulation standard measured by U-value Heat lost per square metre for a 1 deg C temperature difference A single glazed window is approximately 5.7 W m-2 oC-1 * New Building Regulations came into force 6th April 2006

16. The Building Regulations – historic problems • Traditionally Building Regulations have been a question of minimum compliance rather than advancing standards • Trade off of improved insulation in one part against inferior insulation elsewhere. • Have not addressed question of poor workmanship • Incremental improvements – not conducive to long term energy strategy • Later upgrades in standards are difficult and much less cost effective. • Long Timescale for turnover of housing stock • Introduction of irrational rating schemes which have done little to reduce demand. • New 2006 Regulations start to tackle some of these issues.

17. The Building Regulations – historic problems Performance of Elizabeth Fry and ZICER and problems with Carbon Index

18. The Building Regulations – how standards have changed over time Example: small 3 bed detached house If house were built to same standard as Elizabeth Fry Building • Building Regulations address insulation but limited on ventilation • Ventilation is now 50% of total heat demand • Could be reduced by heat recovery systems – e.g. UEA

19. The Building Regulations – how standards have changed over time Example: small 3 bed detached house • There are 26 million housing units in UK • Replacement rate is ~ 500 – 1000 years • Houses built to 1976 regulations consume more than twice 2006 houses • Not easy to improve fabric components of existing stock

20. The Building Regulations – the New Regulations • Some Advantages of New Regulations • Demonstration that standards have actually been met – not just planned • If operated correctly would help combat poor workmanship • Removed several loop holes of earlier versions – but not entirely • Requires competent people to certify compliances • Removes loop hole allowing low insulation if renewable or high efficiency heating appliances are incorporated • Requires more attention to detail e.g thermal bridging effects

21. The Building Regulations – the New Regulations • SomeDisadvantages of New Regulations • Allows for windows of lower insulation if walls have higher insulation value • Does not address issue of ventilation adequately – heat recovery is not mandatory • Regulations only require demonstration that 25% of lighting is of low energy type – does not tackle increased use of tungsten halogen type spot lights. • Does not make renewable generation mandatory (or even installation of dual circuit cylinders) • Does not require developers to provide option energy packages • Allows for energy wasteful “Keep Hot” facility devices • Perpetuates the calculation of a SAP Rating • the Standard Assessment Procedure (SAP) is good • it is the final rating which makes nonsense

22. The Building Regulations – the Standard Assessment Procedure • Assessment of energy performance using a standard method • No allowance for climate variations across country. • in practice an identical house will have different energy consumption and carbon emission in different areas of country because of varying climatic conditions • Makes some assumptions on use so that calculation is not affected by occupancy • i.e. water use is related to floor area not number of occupants. • Includes all energy use for space heating and hot water including electricity use in pumps and fans. • Makes assumptions regarding use of electricity for appliances • For first time in 2006, calculations allow for low energy lights • Allowance is made for renewable energy systems – e.g. solar thermal, renewable electricity etc.

23. The Building Regulations – the Standard Assessment Procedure • 2006 system calculates a Domestic Emission Rating (DER) for each house • DER must be compared with a Target Emission Rating (TER) and shown to be LESS than this. • An Environmental Impact Rating (EI rating) is also calculated. • It is independent of floor area and ranges from • 1 for a very poor insulated house to • 100 for a zero carbon house. • value will be higher if renewable energy systems are present • > 100 if house is a net exporter of energy • A considerable improvement on Carbon Index • should not change with time • HOWEVER a SAP Rating must also be computed!!!

24. The SAP Rating Typical Consumption Level • SAP Rating calculates energy use: then annual costs. • uses standard prices rather than actual ones • Evaluates cost per square metre • Uses a complicated relationship to convert to a another scale

25. Some Observations on UK Energy Policy • Because of assumed tariffs • SAP Rating is higher for Gas than Heat Pumps • For low energy buildings SAP Rating is higher for oil and electricity than gas. • Has a has non-existent Heat Pump Tariff • Using only the Environment Impact Rating avoids problems

26. The Building Regulations – the New Regulations √ X • A significant improvement but more could be done • Improves insulation standards but not as much as could be achieved • Does little regarding ventilation • Introduces Environmental Impact Rating which is 100 for zero carbon house. • Requires checking against Target Emission Rating. • Abolishes the Carbon Index • Requires demonstration that standards have actually been met. X √√ √√ √√ √√

27. The Building Regulations – the New Regulations XXXX • Perpetuates the SAP Rating in which environmental performance is usurped by economics: • gives misleading information, • introduces unnecessary complexity, • requires constant revision with new fudge factors • houses already with a SAP Rating will find their values reduced as a result of new regulations • SAP Ratings of properties could vary in future with varying relative prices of fuels • Abolish it!!! Use only the Environmental Impact Rating which will NOT change unless modifications are made to property. XXXX

28. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

29. Involve the local Community • Many residents on island of Burray (Orkney) compaigned for a wind turbine. • On average they are fully self-sufficient in electricity needs and indeed are a net exporter of electricity

30. Solar Energy - The BroadSol Community Project Solar Collectors installed 27th January 2004 • Costs range from £2000 upwards • Grants can be available • Often confusing to get Annual Solar Gain 911.384 kWh

31. Solar Energy - The BroadSol Community Project Performance when there was snow on ground Store temperature was measured at base of tank • Efficiency of increases with increased day time use of water • Efficiency increases with significant hot water use late in evening • Efficiency decreases with significant hot water use early in morning • Need for new intelligent self learning Hot Water Control Systems • Optimum orientation is 10 – 20 degrees west of south

32. Solar Energy - The BroadSol Community Project Solar Pump Normal hot water circuit Solar Circuit • Nearly one third of cost was in replacement cylinder and associated labour costs • New dual circuit cylinders cost only around £40 - £50 more • All new houses should be fitted with such a cylinder – also all replacements

33. Solar Energy - Photovoltaics • PV systems Currently are very expensive • Need grants > 75% to make them cost effective

34. Micro Generation Small Scale Wind Devices shortly to be on market 1 – 1.5 kW Could perhaps provide up to 30% of domestic needs. No substantive performance data available to date. At present cannot work in “Island Mode” Outstanding issues on ROCs

35. Energy Saving Technologies Micro CHP / Heat Pumps • Micro CHP • Demonstration Schemes are available • Problem over heat in summer • Must always reject heat when • electricity is generated • Heat Pumps • Can lead to reductions in carbon dioxide • emissions of up to 60% • Best used with under floor heating – • installed at time of construction.

36. Some Observations on Renewable Projects • Solar Thermal gives insufficient hot water in winter, but too much in summer. • Overall efficiency and carbon reduction would be enhanced if one collector served two (or three houses?) houses • larger collector area on one • ideal for semi-detached houses. • Similar situation arises in case of PV • Grants have been confusing in past • New grants are not directed at a specific technology but require demonstration of performance • Will tend to support those technologies which are most effective in a location • e.g. would not support micro CHP with Solar Thermal

37. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

38. The Elizabeth Fry Building

39. Performance of Elizabeth Fry Building Careful Monitoring and Analysis can reduce energy consumption

40. Target Day Results of the “Big Switch-Off” With a concerted effort savings of 25% or more are possible How can these be translated into long term savings?

41. Monitoring Performance – remote meters • Acquisition of Meter Reading is unreliable often estimated and does not provide feed back for consumer. • It costs £40 - £50 to read a meter each year • Installing remote metering in new houses costs around £700 including maintenance etc over 10 years. • Would provide accurate monthly data. • Would allow consumers to readily check performance

42. Monitoring Performance – remote meters • Suppliers should be required to provide householders with simple analysis of data to identify faults etc at an early stage. • Provide necessary information to improve efficiency

43. Some Observations on UK Energy Policy • Energy: An Overview • Current UK Energy Policy – a review • The Hard Choices facing us • The Problems of “Comfort Taking” • Problems with the Building Regulations • Renewable Generation at the community level • Monitoring Performance – remote meters? • The Resolution

44. Today’s Resolution • This meeting urges all levels of government to put in place legislation and policy requiring the use of renewable energy technologies in all new buildings, re-building and renovation. • Dual Circuit cylinders for solar hot water should be mandatory in all new properties and where replacements are fitted. • Where combi boilers are fitted in new houses, space must be provided for a solar cylinder. • In electricity systems, it should be mandatory for all Suppliers to purchase ROCs from consumers no matter how small.

45. Today’s Resolution • Encouraging home owners to invest in greening their homes through incentives in property tax, for example, stamp duty and council tax rebates for improving home fuel efficiency. • There used to be a Schedule D Tax for home improvements • What about Inheritance Tax??. • e.g. Increase exemption limit by three times the amount spent on investments in energy conservation/renewable energy • Inheritance Tax is @ 40% so say spending £10000 would exempt £30000 so beneficiaries would get a net sum of £20000 instead of £18000 under a taxation scheme • Better still exempt Inheritance Tax on property up to average price provided that property is brought up to at least 2006 standards.

46. Today’s Resolution cost consumption • Encouraging home owners to invest in greening their homes through incentives in property tax, for example, stamp duty and council tax rebates for improving home fuel efficiency. • Encourage Government to require Suppliers to introduce energy tariffs which will: • Tackle fuel poverty • Place greater emphasis on energy conservation Average consumer

47. Today’s Resolution • The introduction of a single “Code for sustainable Building” so that developers have a clear target for best practice environmental standards for new homes. • Ensure that Regional Targets on Renewable Energy are actually promoted. • Need to get all districts working together • Push for “Option Energy Packages” on all New Dwellings • House Buyers are prepared to pay extra for such options

48. Today’s Resolution • The introduction of New Building Regulation to reduce energy use in new homes by one quarter now, and a further one quarter in five years, with a zero carbon goal. New Regulations came into force 6th April 2006 • Install heat recovery systems in all new houses • Scrap the SAP Rating!!! • Serves no purpose • Introduces unnecessary complication • Bears little relevance to costs of running house • Produces unexpected results • May cause changes in rating in future even if no changes are made • Modify Standard Assessment Procedure so that the same house design would have same consumption irrespective of where it was in country. • Implies insulation standards would have to take account of local climate conditions • Retain and promote the Environmental Impact Rating

49. Today’s Resolution • Establish a Home Condition Report for all house sold and upon change of tenancy, which would include an Energy Report that provides consumer friendly information and simple advice on beneficial energy efficiency changes and how to make them happen easily. • Home Information Pack – already in pipe line • Record of what improvements have been made and when • Regular energy consumption information • Remote metering • Actual energy running costs in recent years. • Comparison of energy and environmental performance with houses of similar age and also with national average. • DO NOT USE SAP Rating!!!

50. WEBSITE www.cred-uk.org This presentation will be available from tomorrow: > Follow the Academic Resources Link Conclusions • Need to act now otherwise we might have to make choice of whether we drive 1.6 miles or heat an old person’s room Are you up to the Challenge?: Will you make a pledge? "If you do not change direction, you may end up where you are heading." LaoTzu (604-531 BC) Chinese Artist and Taoist philosopher