improving the use of energy in buildings

The benefits of energy efficient buildings

26th January 2017, EMW Chancery Lane

Dr Kerry J Mashford – Chief Executive

Dr Thomas Whiffen – Senior Energy Specialist

Who we are?

• Independent.

• National charity.

• Based in Milton Keynes.

• Established in 1988.

• At the forefront of improving

the use of energy in buildings.

We aim to give people, organisations and governments the knowledge, support and inspiration, to understand and improve the use of energy in buildings.

How we work

to identify and

address market

failures

driving forward the frontiers of understanding,

innovation and practice

to deliver practical projects – using our

experience and technical expertise

to achieve

better

performing

buildings

Who we work with

• Businesses

• Community Groups

• Energy and Facilities Managers

• General Public

• Government Bodies

• Local Authorities

• Manufacturers

• Property Owners, Operators and Landlords

• Research Establishments

• Service Providers

• Social Landlords

• Trade Associations

Commercial and Non-domestic buildings

In theory, theory and practice are the same – in practice they aren’t!

Buildings often don’t perform as expected

Source : Bill Bordass based on data from Better Buildings Partnership

Non-domestic energy performance

Source : BPE Programme

Committee on Climate Change – 2016 progress

UK non-domestic buildings account for 18% of emissions, 20MtCO2e annually. Non-residential building emissions remain similar to 2003 levels. New policy, stronger implementation and a focus on low-carbon heat recommended.

ESOS – first deadline December 2015

• Required for UK companies (or overseas companies with UK

establishment) that either:

o employ 250 or more people, or

o annual turnover in excess of 50 million euro

• ESOS process includes:

o Energy audits

o Site visits

o Energy modelling

o Opportunity costing

o Reporting

o Optional implementation

ESOS findings

• Energy surveys of existing buildings

typically identify no/low cost savings

of up to 20%

• Larger, longer term projects and

whole building targets in excess of

30%

• Beyond that – low carbon and

renewable energy

• Reducing costs now, reducing risks

around future energy cost and supply

uncertainty

MEES – Minimum Energy Efficiency Standards

• From April 2018, properties with

EPC ratings of F &G cannot be

re-let

• What will be the impact on:

o asset values,

o ‘work arounds’,

o leasing periods,

o rental incomes?

MEES – Minimum Energy Efficiency Standards

• What responses are anticipated?

o Legal avoidance

o Minimum compliance

o Maximised benefits

Maximum benefit: The business case for good building performance

• Reduce cost of occupancy – energy cost approaching rental cost per m2

• Meet growing market demand (1/3 companies expect to have at least

60% of their buildings certified green by 2018)

• Demonstrate impact on health and productivity for developers and

owners – especially in face of increasing ‘occupant power from data’

• Improve staff recruitment, retention and productivity

• Rapid re-letting – lease periods reducing

• Future proofing leases – since trends to reduce emissions continues

• Energy can therefore be a good proxy for major performance

parameters

• And more…

A ‘win win win’ opportunity

• Better for tenants:

• Lower tenant energy bills

• Better working environment leading to improved productivity

• Overall reduced occupancy cost

• Building prestige

• Better for landlords:

• Lower landlord energy bills

• Potential increase in rents due to overall occupancy model

• Potential increase in rents due to building prestige

• More reliable and respectful tenants

• Easier and faster to let space

• Better for councils and area:

• Cross borough programme enhances business destination, increasing inward investment, enhancing

property market

• Improved building stock since MEES suits all types of buildings – older and less sophisticated can rival

‘prestige’ buildings

• Higher rateable values

• Better air quality

• Better environment for all

How to deliver MEES?

• Building and system upgrades

• Management practices

• NEF can help through:

o MEES

o VolDEC

o Energy Audits

o Feasibility Studies

o ESOS / ISO 50001 – Energy Management Systems

VolDEC – www.voldec.com

Developed for tenanted offices in

association with Legal & General

VolDEC – current issues for landlords & tenants

• No split between landlord and tenant energy use.

• Display Energy Certificates show whole building performance only.

• DECs use one benchmark for all offices.

• Cannot show improvements (or lack of) in what each party (landlord and

tenant) controls.

• Many offices are ‘stuck’ at G, and cannot show improvement.

• GRESB – Global Real Estate Sustainability Benchmark is now increasing in

penetration, requiring monitoring.

• VolDEC highlights energy performance as a clear driver for improvement.

• VolDEC identifies anomalies and the need for detailed investigations.

Easy access, quick, low cost

No lodgement, no site visit, no advisory report required

Uses the existing DEC methodology as the basis, with an improved layout

Includes a certificate quality rating: HIGH/MEDIUM/LOW

Better (& improving) benchmarks and categories, that are sector specific

VolDEC characteristics

VolDEC certificate

Legal & General have found VolDEC makes GRESB reporting quicker, easier and less costly.

VolDEC methodology

Statutory DEC VolDEC

Methodology Produced using the methodology described in CIBSE TM47

Produced using the methodology described in CIBSE TM47

Benchmarks Uses CIBSE TM46 benchmarks. This provides only one benchmark for all office types.

Uses ECON19 benchmarks for offices. Provides four different office types plus energy is broken down by end use.

Landlord / tenant split

Unable to provide a separate landlord tenant DEC in the same building

Uses the granular energy breakdown in ECON19 to provide composite landlord and tenant benchmarks for 5 different building scenarios.

How much energy does your building use?

Available through Amazon as either a print or Kindle version: https://www.amazon.co.uk/How-Much-Energy-Does-Your-Building/dp/1910174033

MEES: A ‘win win win’ opportunity

Better for tenants

Better for landlords

Better for councils

Better for all

Thank you

For more help getting the most out of MEES contact:

thomas.whiffen@nef.org.uk

kerry.mashford@nef.org.uk

www.nef.org.uk

@TheNEF

http://www.nef.org.uk/about-us/insights/2015-energy-

efficiency-regulations-a-real-game-changer-for-the-property-

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