Setting the scene on London’s residential retrofit potential
26
description
Setting the scene on London’s residential retrofit potential. Chair: Stuart Macdonald, Editor, Inside Housing Emma Strain, Environmental Programmes Manager, GLA Christoph Harwood, Marksman Consulting David Adams, Director, Wilmott Dixon Re-thinking - PowerPoint PPT Presentation
Transcript of Setting the scene on London’s residential retrofit potential
Setting the scene on London’s residential retrofit potential• Chair: Stuart Macdonald, Editor, Inside Housing
• Emma Strain, Environmental Programmes Manager, GLA
• Christoph Harwood, Marksman Consulting• David Adams, Director, Wilmott Dixon Re-thinking• Jeremy Kape, Director of Property Investment,
Affinity Sutton
Harpley Room
Green Deal Implementation in London
Emma Strain21 June 2012
History of attracting CERT
Source: EST Home Energy Efficiency Database (HEED) CERT Summary Report. This update contains data on installations up to the end of quarter 14 (30/09/2011) of the CERT scheme
London’s profile to retrofit 2.4m properties by 2020
Houses retrofitted
Why pan-London?
Strategic delivery
Build on previous
work
Working together
Delivery at scale
What Boroughs are looking for from Green Deal
Green Deal Outputs - ScoredBenefit Score / 6
Tackle fuel poverty 4.6
Promote local jobs 4.0
Reduce CO2 emissions 3.3
Health benefits 3.2
Low-carbon sector growth 2.4
Benefit
Promote and enhance brand of Borough
Support social enterprise
Regeneration
Income generation
Communities involvement
Improved equality
Cost savings for consumer
Co-operative council
Broad offering of solutions
Being a lead borough
Green Deal Outputs - Other
Boroughs appetite to risk and willingness to commit resources to support Green Deal
0 20 40 60 80 1000
10
20
30
40
50
60
70
80
90
100
Output/Input score (%) Output/Risk score (%)
Input/Risk score (%)
Out
put s
core
(%)
LA as Provider LA as Promoter
LA as Producer
Pan-London approach to Green Deal
10
GDP(s) selected by borough(s)
“Promoter” boroughs
Basic and enhanced promotion Promoter role
DeliveryDelivery
Referral feeReferral fee
Self-financed boroughs in
“Provider” role
Partner borough
s
Delivery Partner
Provider role
Pan London framework of GDPs
London Producer
Customers sign up to the Green Deal
GLAFunding
Management
Contract
Producer role
Ref: 1257381
Implementation of Green Deal in London
June 2012
Borough roles
Ref: 1257381
Pan London model
Implementation of Green Deal in London 13
“Promoter” boroughs
London Producer
Basic and enhanced promotion
Customers sign up to the Green Deal
Delivery
Referral feeReferral feeDelivery
GLAFunding
Management
GDP(s) selected by borough(s)
Pan London framework of GDPs
Contract
Self-financed boroughs in “Provider” role
Partner boroughs
Delivery Partner
TGDFC
Ref: 1257381
Promoter role
14
Source: The Green Deal and Energy Company Obligation – Consultation Document – November 2011
Key:Could be undertaken by any party. No Green Deal accreditation needed
Needs assessor accreditation to do this function
Green Deal Providers must do all theses functions. Needs provider accreditation
Needs installer accreditation to do this function
Must be performed by energy companies through electricity bills
Other products
(e.g., painting
Project manage-ment and customer service
Credit provider (covers upfront costs)
Initial home visit
Impartial property
assessment
Cost quote (credit offer)
GD measures installation
Raise awareness
Attract consumer
interest
Make contact
Capital finance
Payment collection
Aftercare and
warranty
R
P
PP
Indicates a proactive role for the Promoter roles
Indicates a reactive role for the Promoter roles
R
Implementation of Green Deal in London
Ref: 1257381
Basic and enhanced promoters
15Implementation of Green Deal in London
Basic Promoter Enhanced PromoterActivity ► General promotion ► General promotion
► Marketing activity
Budgets ► Multi-function officer time ► Multi-function officer time► Revenue funding towards
marketing activity
Suitability ► Boroughs with no revenue budget beyond officer time
► Attractive areas where the London Producer finds it easy to operate
► Boroughs willing to invest revenues in targeted marketing campaigns
► Area where not attractive for London Producer
Source of funds ► Revenue ► Revenue► Match funding from London
Producer for agreed marketing programmes.
Ref: 1257381
Additional activities to make a borough more attractive
Implementation of Green Deal in London 16
Parking► Boroughs can look to assist GDPs with parking permits where possible.► This is less of an issue for outer boroughs due to fewer parking restrictions, but will be more
important for inner London boroughs.
Planning and conservation areas► Boroughs should build on the experience gained from RE:NEW in dealing with planning issues.► Many have not encountered many planning issues during RE:NEW, however external solid wall
insulation is not currently possible in the borough due to conservation policies.
Storage and office space► Boroughs could look to provide storage and office space if not already available and there is spare
capacity in own estate
Ref: 1257381
Local authority activity on LA Provider model
Multiple areas of dialogue
Business case Procurement
Newcastle (5) Birmingham (23)
Option review
Developing regional support
London
AGMA West Sussex
Provider
Scottish Government
Leeds
Ref: 1257381
Margin from providing finance
Market APR to consumer (~7%) set by TGDFC
Operating costs
Cost of capital
GIB junior date to TGDFC is 3.85% over GiltsPWLB is 0.8% over Gilts
LA Margin
LA costs• Procurement• Officer time
LA broader outcomes• Jobs• Fuel poverty• Special areas
LA support to householders• Cost of measures• Incentives
Provisional
Ref: 1257381
Provider business model
Installation companies
Install and manage
Contract
Marketing
Energy companies
ECO
Delivery Partner
Finance vehicle
Finance (Prudential borrowing or reserves)
Green Deal payments
Benefits
Green Deal + FIT payments
Anchor LA +Partner LAs Refinance once track
record in place
Ref: 1257381
Boroughs working together to deliver a provider programme
20
Client Boroughs Partner BoroughsDelivery Partner
£ £ £ £ £Contract
Anchor
Initial Partner Borough
Follow on Partner Borough
Housing Association
Non-domesticDomestic
Ref: 1257381
Provider model and TGDFC
TGDFC
Bond
BCC
NCC
London Provider Boroughs
?
£3-500m
Bank finance
GIB
• Credit rating policy• Householder contract• Loan book management system
Ref: 1257381
Implementation of Green Deal in London
June 2012
Borough roles
Setting the scene on London’s residential retrofit potentialDavid Adams, Director, Wilmott Dixon Re-thinking
Harpley Room
Setting the scene on London’s residential retrofit potentialA contractors view......
David AdamsDirector,Willmott Dixon Energy Services
April ‘12
Willmott Dixon
» Major construction company» Established 1852» Privately owned» £1bn turnover (2nd largest private construction Co in UK)
John Willmott
Setting the scene on London’s residential retrofit potentialJeremy Kape, Director of Property Investment, Affinity Sutton
Harpley Room
