Street by street, house by house,

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Street by street, house by house, area based
retrofit for low carbon homes Best approaches for
Scotland
David Adams Head of External Affairs
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(No Transcript)
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But its ok?

• 1.1 Scotland is an energy-rich nation,
  internationally recognised as having vast
  resources in renewable energy, oil and gas.
• Peak oil?
• Or, viewed from afar

Peak Oil Viewed from a distance
0 1000 2000 3000 4000
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Fuel poverty
What will energy cost in 2050?
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Progress to date
1970 1980 1990
2000 2008
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Progress to date
Future
2010 2020 2030
1970 1980 1990 2000
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Heat and Energy Saving Strategy
Homes
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Your targets

• 80 CO2 emissions reduction by 2050
• 42 CO2 emissions reduction by 2020

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Scottish Final Energy Consumption
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Victorian 3 bed semi
Includes some upgrades 30 Low energy
lighting, 50mm Loft insulation, basic double
glazing

• Appliances 1.2TCO2pa
• Lighting and pumps 0.5TCO2pa
• Water heating 1.0TCO2pa
• Space heating 4.5TCO2pa
• Total 7TCO2pa

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Retrofitting

• Standard package
• Cavity wall insulation
• Loft insulation
• Condensing Gas Boiler
• Heating controls
• Low energy lighting
• Draft proofing
• Floor insulation
• .
• Circa 3,000 to 4,000

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Retrofitting

• Expensive to treat package
• Solid wall insulation
• Loft insulation
• Condensing Gas Boiler / Biomass boiler /GSHP
• Heating controls
• Low energy lighting
• Draft proofing
• Floor insulation
• .
• Circa 12,000 to 20,000

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The challenges

• 42 reduction in energy
• 2.5 million homes
• Typical 7,000 each to upgrade
• 16billion
• 1.6B per year
• 6 M per working day
• 900 homes completed every day

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The challenges - engagement

• Requires 900 homes completed every day
• Today? guess 150K pa or 500 per day
• Issue - much more needs to be done with each to
  reach a 42 reduction
• Area based refurbishment
• single streets
• single homes

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Area based approach

• Barriers to energy efficiency
• Including
• split incentives,
• Behavioural inertia
• Institutional inertia,
• perceived risks of investment,
• not top of mind issue

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The challenges what, when

• Whole house all at once is expensive
• Scary numbers!
• will be appropriate on occasions
• Need to have a whole house plan
• Execute it at appropriate times
• Need the community - Area based approach
• Create momentum
• Demonstrate locally what can be done
• Reassurance
• Protection
• Raise to top of mind
• . even if single homes are refurbished
• Behavioural

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The challenges - financial

• Where does 16billion come from?
• Euqivalent to 640 spent per household per year
  to 2020 ????
• However, due to the significant sums involved,
  it is assumed that those who are able to pay will
  invest or borrow to undertake work.
• Why?

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Remembering

• Significantly more would be spent on fuel than on
  the cost of the energy efficiency measures
• Energy efficiency makes sense
• Climate, energy security, fuel poverty, cost

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Financing approaches

• Required rapidly
• Need a range of, available to all
• Green mortgages
• Pay As You Save

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Financing approaches

• Required rapidly
• Need a range of, available to all
• Green mortgages
• Pay As You Save
• ..
• Need to value energy efficient homes
• Regulation to drive valuation
• Need financial incentives
• Remembering
• Significantly more would be spent on fuel
• than on the cost of the energy efficiency
  measures
• We are not putting people into debt

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Compulsion or incentives?

• Need to engage
• Incentives yes
• Make it easier to do than not do
• Responsibly warn people what is to come
• Fuel costs,
• climate,
• Legislation
• withdrawal of incentives..
• unable to sell / rent
• must give long timescale warning (but effect is
  more rapid)
• and in some circumstances - compulsion

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Supply chain

• Industry will invest if there is confidence in
• a robust
• Quality
• long term market
• Your time scale is very short
• Need to serious delivery plan
• They would be mad not too

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Remembering

• Significantly more would be spent on fuel
• than on the cost of the energy efficiency
  measures
• Energy efficiency makes sense
• Climate,
• energy security,
• fuel poverty,
• Job creation
• Comfort
• Costs less!
• It actually doesnt get any better than this!
• Just need to work out how.!

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Thank you David Adams, Knauf Insulation