With completed housing estimated to account for 30 per cent of the UK’s total energy use and 27 per cent of carbon dioxide emissions, policies designed to tackle climate change are increasingly having an effect on how housing is built and managed, writes Chris Baker, partner at Davis Arnold Cooper.
The government target is for all new housing to meet level 6 (net zero carbon) of the Code for Sustainable Homes by 2016. The absence of sufficient large renewable energy systems means that onsite micro generation will be necessary in order to achieve the desired changes.
Onsite generation generally has involved either the use of photo-voltaic (PV) cells or combined heat-and-power (CHP) plants fuelled by biomass or gas boilers and operated by Energy Service Companies (ESCOs). Developers generally prefer the latter due to the cost of PV cells and the fact that PVs are not suitable for every type of housing. An ESCO generally will contribute to the capital cost of, and operate and maintain, onsite generation of low carbon heat and electricity in return for revenue from long-term contracts for the sale of the energy to end-users.
There are a variety of ESCO models from systems run by traditional electricity companies, through to community based ESCOs where the tenant’s management company or a subsidiary becomes responsible for operation of the plant. In either case the managing agent is likely to have a role in managing the relationship between the provider and occupiers although day-to-day maintenance is likely to be subcontracted to specialist contractors and consultants.
Reducing water
The ESCO model is sustained on the basis the energy is provided at a discount to the price available on the general market. While ESCOs are the flavour of the day, the government has announced a proposal to increase offshore wind farms by 60 fold by 2020, so onsite micro generation could soon be old hat.
Sustainability of course is not just about energy consumption. Reducing water consumption is also another concern. The code for sustainable homes has introduced fairly strict water consumption limits. Transport is yet another important issue and increasingly new developments involve car clubs and cycle clubs that require a certain level of ongoing management.
The government has also turned its attention to improving energy efficiency with existing housing stock. At the recent Thames Gateway Forum the Housing Minister announced a £15 million community-focused programme to retrofit existing homes with energy saving measures. It remains to be seen what this will involve in practice although the government is keen to find ways to connect existing housing schemes into micro generated energy systems from new neighbouring developments.
Policy in this area is fast moving. However the policy is cast there is no doubt that net energy consumption of housing will need to be reduced and that our built environment will change to accommodate this.
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