London’s building retrofit programme
Regulatory framework
Today
2020
European 20-20-20
Target
• Reduction in greenhouse
gas emissions by 20% below
1990 levels by 2020
• 20% increase in renewables
• 20% cut in energy
consumption
2025
2050
The Mayor’s Commitment
London Mayor’s
UK Climate Change Act
Climate Change Target
(2008)
• Reduction in
greenhouse gas
emissions by 60%
below 1990 levels
by 2025
• Reduction in
greenhouse gas
emissions by 80%
below 1990 levels by
2050.
42% of London’s CO2 emissions are from workplaces
Transport
22%
Lighting
19%
Workplaces
42%
Homes
36%
Catering
11%
Heating
46%
IT 3%
Cooling
5%
Other Hot water
9%
7%
CO2 emissions from London, 2008
(excluding aviation)
Commercial & Public Sector CO2 emissions from
London, 2008
100% = 44.7 million tonnes CO2
100% = 19.2 million tonnes CO2
Public sector comprises health (23%), education (47%) and offices (30%)
The RE:FIT model
Summary
Identify buildings to retrofit, set a target energy
saving and payback period
%
Savings
Run a mini competition to select an Energy
Service Company (ESCo) to carry out the works
and guarantee energy savings
Payback
Period
Maximum
Investment
Payback of the investment is guaranteed with
the delivery risk transferred to the ESCo
RE:FIT allows public bodies to make substantial cost savings, reduce energy bills
and the carbon footprint of their buildings
Jan 2010: RE:FIT framework procurement
OJEU compliant framework established
Benefits for public sector clients:
• Provides pre-negotiated, EU compliant contracts
• No royalty costs to access the framework
• No shared savings
• Opportunity to make substantial energy and carbon saving
• Savings are guaranteed
• Low payback periods
• Uses experience to develop best practice templates/ standards
2011: Long-term funding for RE:FIT PDU
• The GLA secured funding from the European
Commission under the European Local ENergy
Assistance Programme (ELENA)
• ELENA funds the Programme Delivery Unit (PDU) to
deliver the RE:FIT Programme
• 90% of the £2,671,000 funding is provided by ELENA
and 10% by the GLA
• This means the PDU is provided at no cost to RE:FIT
users
The PDU aims to leverage its operating costs 25-36 times in delivered capital
investment
PDU engagement through the RE:FIT process
Gain
Management
Buy -in
Secure
Funding &
Resources
Prepare
Project Brief
Mini
Competition
Marketing & Engagement
Benchmarking
Technical Support
Procurement Advice
Investment
Grade
Proposal
Install
Service
Delivery/
Energy
Monitor
Conservation
Performance
Measures
Programme performance
• 93 London organisations engaged
• Buildings retrofitted
• Complete/ being delivered = 235
• Minimum leverage required is £66,775,000 (25
times leverage)
• Aim to deliver £96,156,000 (36 times leverage)
Maximum Total Contract Value
£9,336,660
• Square metres of space retrofitted
£12,620,637
£26,879,000
• Delivered/in delivery = ~1,000,00 m2
• ~24,000
Achieved
£15,040,000
Secured
Committed
tCO2
saved
£50,336,850
Planned
Forecast
• ~50,000,000 kWh saved
On track to deliver minimum leverage and plan in place to achieve higher leverage
RE:FIT achievements
93 London organisations are engaged with RE:FIT:
• 28 London Boroughs
• 21 NHS Organisations
• 44 others (Central Govt, Education Institues etc)
Retrofitting completed/near completion on 235 buildings including:
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Universities
Hospitals
Cultural centres
Colleges
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•
•
•
Schools
Fire stations
Police buildings
Leisure centres
•
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•
Civic centres
Office buildings
Community buildings
Libraries
£3.5m energy bill savings per annum
£3.1m investment
24,000 tonnes CO2 savings
Case studies: Newham University Hospital and Royal
Botanic Gardens, Kew
Newham University Hospital
Ealing Council
RoyalWaltham
Botanic Gardens,
Kew
NHS
Forest (PCT)
Project:
Two-phased upgrade of air handling units
Savings:
9.8% reduction in
energy costs
732 tonnes of CO2 per
annum to be saved
Value:
£433,000 capital
investment
5 year payback period
Timescale:
Phase 1 completed 2011, phase 2 to complete
2013
Project:
Two-phased retrofit across Kew & Wakehurst
Place
Savings:
7% reduction in
energy costs
760 tonnes of CO2 per
annum to be saved
Value:
£690,000 capital
investment
Average 6 year payback
period
Timescale:
Installation to be completed summer 2013
RE:FIT pipeline
2008
First building
retrofitted
2010
2012
RE:FIT Pilot
42 buildings
136 buildings
£1m energy
bill savings
per annum
£2.16m energy
bill savings
per annum
£15.1m
investment
2013
Pipeline of 370
buildings
Savings of over
£4.9m p.a. in
energy bills
£26m
investment
2015
2025
Target > 600
buildings
Target 40% of
public sector
buildings
Savings of up
to £12m in
energy bills
per annum
Savings of up to
£80m in energy
bills
RE:FIT future plans
Programme improvements:
Next steps:
• Financing options
• Scale up activity and deliver current
•
Self finance
•
Third party finance (ESCO/ LEEF/ Salix/ Banks)
•
Off balance sheet
• Range of tender options
• Schools and SME programme
programme goals
• Secure a long-term future for RE:FIT
• Long-term funding and resourcing
strategy
• Extend to support commercial sector
The GLA is committed to supporting retrofit activity to deliver its 2025
targets
London Energy Efficiency Fund
LWaRB
European Commission
(ERDF via JESSICA)
GLA
£18m
£32m
£50m
London Green Fund
£100m
(EIB holding fund manager)
£50m investment
£35m investment
£35m private sector paripassu co-financing
Waste UDF
London Energy Efficiency Fund
LEEF - £100m
(Amber Infrastructure with Arup
& RBS)
Project-level repayable investment (equity)
Project
RBS match and
complementary
financing £50million
Project-level repayable investment (debt)
Project
Project
Project
Urban project-level public &/or private additional
financing
For more information
Visit: www.REFIT.org.uk
E-mail: REFIT@london.gov.uk
Or contact
Dimitri Hadjidakis
Turner & Townsend
(+44) 20 7544 4110
Vicky Kingston
Greater London Authority
(+44) 7920 579298
Back-up slides
Framework of approved suppliers
• Balfour Beatty Workplace
• Imtech Technical Services Ltd
• British Gas Trading Ltd
• Norland Managed Services
• Bouygues Energies & Services
FM (UK) Ltd
Ltd
• MCW/Breathe Energy
• COFELY Ltd
• MITIE TFM Ltd
• EDF Energy Customers Plc
• Skanska Construction UK Ltd
• E.ON Energy Solutions Ltd
• Willmott Dixon Energy
• Honeywell Control Systems Ltd
Services Ltd
Energy Conservation Measures include:
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•
•
•
•
•
•
•
•
•
•
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District Heating
CHP
VSDs on pumps and fans
PC control
Voltage optimisation
Lighting & controls
BMS controls
Heat recovery
Solar thermal
Photovoltaic panels
Cavity wall insulation
Loft insulation
Insulation to pipework
Secondary glazing
Draught proofing
Radiator reflector panels
1E Nightwatchman software for PC auto shutdown
The Programme Delivery Unit team
Vicky Kingston
GLA Programme Manager
Dimitri Hadjidakis
Programme Director
Chloe DeBanks-Hirst
Programme Office
Robert McKinnon
Jon Spring
Tristan Oliver
Roger Simpson-Jones
Marketing & Engagement
Benchmarking
Technical Team
Procurement
Natalie Crane
David Rees
Catherine Roche
Rommy Perea
Chris Spicer
Mark Phelpstead
Merv Chapman
Chloe DeBanks-Hirst
Chris Sampson
Elliot Smith
Phil Toombs
Next steps
Memorandum
of
Understanding
Benchmarking &
mini
competition
• Senior management
buy-in
• Building portfolio
selected
• MoU signed
• Energy savings
assessed
• Handover meeting
• Project brief
• Preferred Supplier
selection
Investment
Grade Proposal
&
Implementation
• Investment
Grade Proposal
(IGP)
• Building contract
signed
• Capital Project
Measurement &
Verification
• To verify guaranteed
savings
• For the duration of the
contract
Tender options
Option 1 - Partner Bid
Select a delivery “partner”
Option 3 –
Demonstration Bid
Includes detailed
technical/commercial
proposal(s) on specific
building(s)
Option 2 – Target Bid
First building
Based on
supplier technical
retrofitted
solutions
Option 4 – Portfolio Bid
Detailed technical/commercial
proposals for all buildings