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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 1 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 2 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 3 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:- 4 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 5 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. 6 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 7 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. 8