Download CS.35.06 - Improving Energy Efficiency in Council Assets

REPORT TO EXECUTIVE
PORTFOLIO AREA: ENVIRONMENT & INFRASTRUCTURE
Date of Meeting:
3rd July 2006
Public
Key Decision:
Yes
Recorded in Forward Plan:
Yes
Inside Policy Framework
Title:
IMPROVING ENERGY EFFICIENCY IN COUNCIL ASSETS
Report of:
Director of Community Services
Report reference:
CS 35/06
Summary:
The report provides the Executive with options for capital investment in energy saving and
renewable energy projects in the city council's buildings.
Recommendations:
It is RECOMMENDED that:1. The Executive support this initiative with the capital cost of £62,000 in 2006/7 being
met from carry forwards in the current capital programme as set out in Section 9
Financial Comments.
2. The Director of Community Services maximises grant opportunities to contribute
towards this programme.
Contact Officer:
Ext:
David Kay
5068
Note: in compliance with section 100d of the Local Government (Access to Information) Act 1985
the report has been prepared in part from the following papers: None
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1.
BACKGROUND INFORMATION AND OPTIONS
1.1
The city council's electricity and gas consumption is steadily increasing, particularly
electricity predominantly due to the number of appliances used in the workplace and
higher staff expectations of standards of comfort, leading to more widespread use of
fans and air conditioning in the summer months.
The city council’s local
performance indicator target of a 2% reduction in electricity consumption year on
year at the Civic Centre is proving increasingly difficult to achieve, and in addition to
this, energy costs have increased considerably in recent months.
1.2
Measures have been carried out in recent years to improve the efficiency of the city
council's buildings through a range of measures including insulation, heating
controls, window replacement, double glazing and draught proofing. To assess
opportunities for improvement, in 2005 energy surveys were carried out by The
Carbon Trust on five of the city council's properties. Recommendations included
updating energy policy and targets; improving our collection of energy data; the
provision of staff training and awareness campaigns as well as practical measures
for improved heating, lighting, ventilation and plant replacement.
In addition,
consultation has been carried out with specialist contractors as to how recent
developments in energy saving technology and renewable energy can be utilised to
assist in reducing the city council's energy consumption and carbon dioxide
reduction emissions.
2.
CURRENT POSITION
2.1
As pressure mounts for local authorities to lead by example and manage their
carbon emissions, the city council’s increasing electricity consumption is a cause for
concern. Rising energy costs and the imminent introduction of the Climate Change
and Sustainable Energy Bill that aims to encourage small-scale renewable
technologies, present good opportunities for the city council to invest in energy
saving and renewable energy projects in the city council's buildings.
2.2
Opportunities are being assessed for managing energy consumption through a
programme of investment in renewable technologies and cheap and simple
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awareness raising measures amongst staff.
Staff awareness will form part of
forthcoming environmental performance plans for each directorate.
Plans will
include for example the appointment of officer champions who will encourage
colleagues to switch off appliances and lights when not needed and to promote
increased energy awareness.
3.
3.1
PROJECT VIABILITY
When considering whether a project is worthwhile a "whole life cost" approach
should be taken. The benefits of reduction in both energy costs and carbon dioxide
emissions need to be balanced against the anticipated life of the equipment
together with maintenance costs.
energy cost.
The "unknown factor" in this exercise is the
However it is generally anticipated that this will be upwards and
consequently the benefits of the investment will increase over the life of the project.
3.2
Grants will be available from the Government’s Low Carbon Buildings Programme
from July 2006.
For many renewable energy projects the grant is essential to
financial viability.
3.3
New targets of a 1% year on year reduction of energy consumption have been set
for three of the buildings with the highest consumption, the Civic Centre, Bousteads
Grassing Depot and The Crematorium.
The 2005/6 consumption figures and the
new targets for 2006/7 are shown in the table below.
Without the introduction of
more proactive physical measures and management policies the Council’s target for
energy reduction will not be achieved.
4.
DETAILED PROPOSALS
4.1
The largest consumers of energy in the Council’s portfolio are
SITE
ENERGY CONSUMPTION ENERGY COST ENERGY TARGET
CIVIC CENTRE
2,400,484 KWh
£57,850
2,376,479KWh
BOUSTEADS GRASSING
874,361KWh
£21,711
865,617KWh
CREMATORIUM
1,810,004KWh
£19,884
1,791,904KWh
4.2
A package of improvements has been prepared which identifies the cost, payback
period and environmental impact. A number of improvements are identified for the
Civic Centre and whilst these show important benefits some consideration should
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be given to the timescales of Carlisle Renaissance and the potential re-location of
Council accommodation.
It is feasible to relocate equipment such as wind
generators and solar panels to other buildings should this be required.
Some projects such as wind generators depend on grant aid to achieve financial
viability.
The government’s Low Carbon Buildings Programme will provide grants
for this type of project.
This is anticipated to be available from July 2006.
It is
recommended that those projects where grant aid is required are re-assessed at a
later stage when precise details of grant funding are known.
Some projects have been identified on buildings other than those included in the
energy targets.
These projects have been identified as the use of the buildings is
particularly suited to the technology proposed.
At this stage it is considered that the following projects should be progressed:-
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PROPOSED PROJECTS
ANNUAL
PAYBACK
ANNUAL CO2
SAVING £
(YRS)
REDUCTION
% reduction on
consumption
COMMENTS
£17,500
£1,800
10
15.4t
1-2%
Basement, ground part of Fl 1 and Fl 9 already have
Timer controls to DX
heat pumps
Lighting controls
£9,000
£600
15
5.2t
0.4%
£1,500
£150
10
1.2t
0.14%
Replace boiler with
high efficiency boiler
Lighting controls
£4,000
£250
16
0.7t
0.2%
£4,000
£250
16
2t
0.15%
Additional controls to
air handling system
Lighting Controls
£5,000
£350
14
2.8t
0.21%
£6,000
£600
10
5.2t
1.2%
Solar hot water
system
Solar hot water
system
£10,000
£800
12
2.4t
14%
£5,000
£400
12
1.2t
16%
£62,000
£7,600
SITE
Civic Centre
COST £
PROJECT
Lighting controls to
Floor 2,5,6,7,8
Civic Centre
Crematorium
Crematorium
Tullie House
Tullie House
Bousteads
Grassing
Shaddongate
Hostel
Staffield
House
TOTAL
controls
56.7t
Early replacement of existing boiler (will need replacement
within 5 years)
Controls for “house” day-lit spaces and external lighting
Equates to 7.5% return
RESERVE PROJECTS FOR CONSIDERATION WHEN FURTHER IINFORMATION ON GRANTS ETC IS AVAILABLE
SITE
PROJECT
COST
Civic Centre
Roof mounted w ind microgeneration
£20,000 plus £5,000 grant
Bousteads Grassing
Mast mounted w ind generator
£20,000 plus £5,000 grant
Crematorium
Cremator Heat Recovery
£10,000
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ANNUAL SAVING
£1,700
PAYBACK
6 yrs
ANNUAL CO2
8.4t
SAVING
3.10%
4.3
As stated earlier in this report the development of environmental performance plans
will include measures to raise staff awareness and the adoption of more energy
efficient working practices.
5.
CONCLUSION
The city council has a good record of implementing energy efficiency improvements. In
the aims for a Cleaner, Greener, Safer Carlisle and improved environmental performance,
energy consumption is an area where the Council can make further improvements and
lead by example by investing in the best available renewable technology.
The
improvement works at Talkin Tarn provide a good example of the adoption of a range of
sustainable energy uses.
6.
CONSULTATION
Consultation to date: Director of Corporate Services, Director of Development Services,
Environmental Performance Manager.
Consultation proposed: Head of Planning, telecommunications company.
7.
RECOMMENDATIONS
It is RECOMMENDED that:1.
The Executive support this initiative with the capital cost of £62,000 in 2006/7 being
met from carry forwards in the current capital programme as set out in Section 9
Financial Comments.
2.
The Director of Community Services maximises grant opportunities to contribute
towards this programme.
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8.
REASONS FOR RECOMMENDATIONS
The recommendations provide capacity to improve the Council’s performance in the key
priority area of Cleaner, Greener, Safer. With energy prices forecast to increase this does
represent an “invest to save” opportunity.
9.
IMPLICATIONS

Staffing/Resources - Managed in-house in conjunction with the maintenance
programme. Some external design input is required from specialist companies.
Assistance with design is also available from the Carbon Trust.

Financial - All the projects are expected to provide return on capital investment
within the lifespan of the project and therefore comply with the principles of lifecycle costing. Grants are available for renewable energy projects via the Low
Carbon Buildings Programme details of which are due to be announced in July
2006.
There are issues arising from the current level of carry forwards occurring
against the annual capital programme.
The Capital Projects Board will review
the profiling of the existing Capital Programme and consider that which
realistically be delivered and when.
The outcome of this review will feed into
the capital monitoring process and the 1007/08 onwards budget process.
This process will identify the scope to consider the potential existing resources
approved rather than request a supplementary estimate.
The position with
regard to the grant that might fund some of this initiative may also be clearer and
will be reported to a future meeting.

Legal - Projects are subject to planning permission.

Corporate - The projects demonstrate the council's commitment to the "Cleaner
Greener Safer" policy.
Learning City - The innovative technology gives an
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opportunity for community learning on renewable energy and associated
technology

Risk Management - A risk register will be produced for each project.

Equality Issues - None.

Environmental - The projects will contribute significantly towards achieving the
council's environmental targets on CO2 reduction and reducing energy
consumption.

Crime and Disorder - None.

Impact on Customers – None.
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