11th April 2006

1
Some Observations on UK Energy Policy
11th April 2006

Keith Tovey (???) M.A., PhD, CEng, MICE
CEnv HSBC Director of Low Carbon Innovation
School of Environmental Sciences
CRed
2
Todays 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
Todays 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? gtgtgtgtgtgt
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? gtgtgtgtgtgt

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 attendant Security 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

• Some Disadvantages 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
• gt 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

• 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

• 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.

v
X
X
vv
vv
vv
vv
27
The Building Regulations the New Regulations

• 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
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

• 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 gt 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
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
Todays 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
Todays 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 _at_ 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
Todays 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.
• Encourage Government to require Suppliers to
  introduce energy tariffs which will
• Tackle fuel poverty
• Place greater emphasis on energy conservation

Average consumer
47
Todays 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
Todays 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
Todays 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
Conclusions

• Need to act now otherwise we might have to make
  choice of whether we drive 1.6 miles or heat an
  old persons 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."
Lao Tzu (604-531 BC) Chinese Artist and Taoist
philosopher