Appendix 1 - Lhees Strategy
Argyll and Bute Council · 21 November 2024
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Page | i Argyll and Bute LHEES Executive summary Scottish local authorities have a statutory duty to develop a Local Heat and Energy Efficiency Strategy (LHEES), as described in the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022. The purpose of the LHEES is to develop a pathway to decarbonise how we heat our homes and buildings. It focuses on retrofitting existing buildings, with new builds being outwith the scope of the LHEES. Renewable energy generation from sources such as wind, solar, and hydro is also outwith the scope of the LHEES. However, the Argyll and Bute LHEES has included local generation because it could help address certain grid constraint issues. Additionally, it provides a pathway to sustainable energy resilience in communities. It also offers opportunities for a ‘just transition’ by potentially providing local, low-cost, clean energy to communities facing higher electricity costs than most other communities in the UK. Decarbonised heat is heating a building from a zero direct emissions heat source, which includes: • Electrical heating such as storage heaters, electric boilers, electric radiators and all heat pumps (Air to Air, Air source. Ground source and water source heat pumps). • Heat Networks as defined by the LHEES methodology. As well as smaller heat networks and district heating systems. • In the future, hydrogen may be a suitable decarbonised heat source. The LHEES must also ensure that the transition to clean, decarbonised heat does not drive households into fuel poverty. Therefore, energy efficiency interventions are an important tool to reduce the heat demand in buildings and reduce the risk of households falling into fuel poverty. The LHEES covers the entire local authority area, addressing domestic and non-domestic buildings. It identifies strategic zones and outlines key opportunities and measures for reducing emissions within each zone. Furthermore, the LHEES delineates delivery areas. These have a more detailed focus than the broader strategic zones. The LHEES is developed through a systematic eight-stage process. Stages 1 to 5 are dedicated to building a comprehensive evidence base. Stage 6 is focused on stakeholder engagement (however, the Council did not restrict stakeholder engagement to Stage 6 but rather employed various strategies to involve key stakeholders at every stage of the LHEES). The insights gained from the first six stages inform Stage 7, which focuses on formulating the LHEES Strategy, while Stage 8 is centred on creating the LHEES Delivery Plan.
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Page | ii Argyll and Bute LHEES Argyll and Bute’s LHEES vision is: “To decrease heat demand by improving the energy efficiency in Argyll and Bute’s homes and buildings and reduce carbon emissions by transitioning to a decarbonised heat source. We are committed to seizing the community wealth building opportunities presented by decarbonisation while ensuring a just transition that addresses fuel poverty.” The strategy has identified eight priorities to realise the vision. These are as follows: • Improving grid capacity. • Improving skills and the supply chain. • Improving knowledge and awareness of decarbonisation pathways. • Decarbonising the heat source. • Creating energy efficient buildings. • Tackling fuel poverty. • Facilitating sustainable and energy resilient communities. • Ensuring a ‘Just Transition’. Argyll and Bute's LHEES will focus on domestic properties in off-gas grid areas suitable for heat pump retrofitting or connecting to a heat network or district heating scheme. Additionally, the strategy will have a non-spatial emphasis, targeting properties in the private sector, including those within the Private Rented Sector (PRS) and owner-occupied homes. The LHEES will prioritise properties with poor energy efficiency, particularly when this contributes to fuel poverty. Notably, this initial LHEES will not address mixed-tenure and mixed-use buildings or older buildings and conservation areas. The LHEES guidance stipulates that strategies must thoroughly examine the challenges and opportunities associated with decarbonising heat in buildings. In the context of Argyll and Bute, the principal challenges are as follows: • Inadequate grid infrastructure. • A significant number of buildings are unsuitable for heat pump retrofit. • The geography and other local factors result in limited decarbonisation options. • The Council does not have direct control over social housing. • Uncertainty around how the decarbonisation journey will be financed. • Argyll and Bute is not a heat-dense area; consequently, the area is unlikely to be attractive to investors who want to build a heat network, so the benefits of heat networks will not generally be realised. • There is a shortage of contractors and people with the correct skills to install decarbonised heating systems or energy efficiency measures. • A higher than average proportion of the building stock is uninsulated and has a poor Energy Performance Certificate (EPC) rating; consequently, the scale of the challenge is sizeable. • A large proportion of the building stock is older buildings with solid walls, making redress difficult and expensive. • The lack of a predominant set of building archetypes means that economies of scale cannot be realised when installing energy efficiency measures.
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Page | iii Argyll and Bute LHEES While there are challenges in decarbonising homes and buildings, there are also a wealth of opportunities, such as : • community wealth building. • higher paid and higher-skilled jobs in the green economy • economic growth. • levering in investment in decarbonisation infrastructure. • utilising the surplus energy generated by renewables that cannot be transported to the grid. • developing small-scale heat networks and other local energy distribution solutions. • providing cheaper and cleaner energy, which will help to alleviate fuel poverty.
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Page | iv Argyll and Bute LHEES Table of contents SECTION 1- BACKGROUND SETTING THE SCENE 1. What is a Local Heat and Energy Efficiency Strategy? 1 1.1. Purpose 1 1.2. Structure 1 1.3. LHEES guidance from the Scottish Government 2 2. Stakeholder Engagement 4 3. Policies and progress 7 3.1. National Policies 7 3.2. Local Policies 10 3.3. Progress to net zero in Argyll and Bute 12 4. Baselining Building Stock 17 4.1. Domestic buildings 17 4.2. Non-domestic buildings 27 4.2. Non-domestic buildings 30 SECTION 2- THE STRATEGY 5. LHEES Vision and Priorities 31 5.1. Address Grid Infrastructure 33 5.2. Address supply chain constraints and shortage of skills 36 5.3. Improve education and awareness of decarbonisation requirements and solutions 37 5.4. Ensure a “Just Transition” 38 5.5. Tackle Fuel Poverty 45 5.6. Building Sustainable and Energy Resilient Communities 51 6. Strategy for Decarbonising Heat 52 6.1. Heat Pumps 54 6.2. Heat Networks and District Heating Schemes 57 6.3. Bespoke Heating Solutions 62 6.4. Next steps 63 7. Strategy for Energy Efficiency 64 7.1. Building Fabric 64 7.2. Walls 65 7.3. Other Measures 68 7.4. Scale of the Task, Costs and Benefits of Energy Efficiency Interventions 68
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Page | v Argyll and Bute LHEES 7.5. Data Zones that Require the Most Interventions 69 7.6. Drivers for Installing Energy Efficiency Interventions 70 7.7. Challenges of Achieving Energy Energy Efficiency Interventions 70 8. Challenges 71 9. Opportunities 74 10. Next steps 76 SECTION 3- SUPPORTING MATERIALS 11. Glossary 77 9.1. Abbreviations 77 9.2. Terms 78 12. Appendices 82 12.1. Appendix A: How this LHEES was Developed 82 12.2. Appendix B: Stakeholder Engagement 86 12.3. Appendix C: Additional National Policy Drivers 91 12.4. Appendix D: Datasets Used in the Development of the LHEES 94 12.5. Appendix E: Datasets and Limitations of the LHEES approach 95 12.6. Appendix F: LHEES Stage Descriptions 98 12.7. Appendix G: Detailed Methodology for the Identification of Potential Heat Network Zones 100 12.8 Appendix H: Heat Network Opportunities from Argyll and Bute’s Pilot Study 101 12.8. Appendix I: Shared Ground Loop Methodology 102 Acknowledgements This strategy was produced by The LHEES Officer, Argyll and Bute Council. Data analysis was conducted by Changeworks. The Scottish Government funded the staff, consultancy and production costs. Publication date: 20th October 2024
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Page | 1 Argyll and Bute LHEES 1. What is a Local Heat and Energy Efficiency Strategy? 1.1. Purpose Scottish local authorities have a statutory duty to develop a Local Heat and Energy Efficiency Strategy (LHEES), as described in the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022. The Local Heat and Energy Efficiency Strategy (LHEES) is at the heart of a place-based, locally led and tailored approach to heat transition. It sets out Argyll and Bute's long-term plan for decarbonising heat in both domestic and non-domestic buildings and improving energy efficiency across the entire local authority area. The LHEES must also consider the national fuel poverty target, which states that as far as reasonably possible, no household in Scotland will be in fuel poverty by 2040. The strategy and delivery plan were developed in collaboration with key stakeholders, with a focus on delivering in a way that is tailored to the local context and the specific needs of communities. 1.2. Structure The LHEES is developed by undertaking the eight-stage process outlined in Figure 1. Stages 1-6 are dedicated to gathering the necessary data and evidence, which then informs the development of the Strategy (Stage 7) and the Delivery Plan (Stage 8). Figure 1: Summary of LHEES Stages Strategy The strategy represents Argyll and Bute’s long-term strategic framework for decarbonising heat in buildings and improving energy efficiency across the local authority's administrative area. It is framed around six considerations outlined in Table
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Page | 2 Argyll and Bute LHEES 1. Argyll and Bute Council’s Strategy is data-led and demonstrates the direction the Council is moving towards. Table 1 LHEES Considerations No. LHEES Consideration Description Heat decarbonisation 1 Off-gas grid buildings Transitioning from heating oil and LPG in off-gas areas 2 On-gas grid buildings On-gas grid heat decarbonisation 3 Heat networks Decarbonisation with heat network Energy efficiency and other outcomes 4 Poor building energy efficiency Poor building energy efficiency 5 Poor building energy efficiency as a driver for fuel poverty Poor building energy efficiency as a driver for fuel poverty 6 Mixed tenure, mixed-use and historic buildings Mixed tenure, mixed-use buildings, and buildings in conservation areas A comprehensive description of these considerations can be found in Appendix A. Delivery Plan The Delivery Plan accompanies the strategy. The plan is flexible and iterative, outlining how the Council will implement its strategy over the next five years. It outlines the areas requiring further analysis and investigation and identifies low or no-regret measures for decarbonising heat in buildings. It provides a focus for the Council to consult and work with stakeholders to deliver the LHEES strategic objectives. Both documents will be reviewed and updated periodically to reflect legislative changes, progress towards net zero, new available technologies and funding, and changing priorities in the local area. Argyll and Bute Council’s Strategy and Delivery Plan can be found on Argyll and Bute Council’s website.
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Page | 3 Argyll and Bute LHEES 1.3. Guidance The LHEES guidance provides local authorities with a standardised approach to developing and delivering the LHEES. The guidance states that the LHEES Strategy is evidence-based and should: • set out how each segment of the building stock needs to change to meet national and local objectives, including achieving zero greenhouse gas emissions in the building sector and the removal of poor energy efficiency as a driver of fuel poverty. • identify strategic heat decarbonisation zones and set out the principal opportunities and measures for reducing emissions within each zone. • prioritise areas for delivery against national and local priorities; and • act as a prospectus for where government funding and private investment for heat decarbonisation and energy efficiency should be targeted. Argyll and Bute LHEES was developed in accordance with national guidance. Further details are provided in Appendix A. This appendix also outlines the limitations of the methodology.
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Page | 4 Argyll and Bute LHEES 2. Stakeholder Engagement The Council has acknowledged the importance of engagement. It has involved key stakeholders at all stages of the LHEES, as seen in Figure 2. Figure 2 Summary of the process used to engage key stakeholders in shaping LHEES priorities
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Page | 5 Argyll and Bute LHEES (Full details of the Stakeholder engagement process is set out in the Appendix B ). Stakeholder engagement activities included: 2.1 LHEES Steering group The internal steering group determined the scope of the LHEES and reviewed the LHEES's outputs. Appendix B outlines the services which were involved and their roles. 2.2 LHEES Stakeholder Events The Council hosted two stakeholder engagement events to determine the LHEES priorities. Both events had a mixture of internal and external stakeholders. Figure 2 outlines which stakeholders attended these events and how these key stakeholders informed the LHEES priorities. 2.3 Existing structures Argyll and Bute Energy Efficiency Forum The LHEES Officer is a member of Argyll and Bute Energy Efficiency Forum and provided forum members with a presentation outlining the outputs of the LHEES research and data analysis. A prioritisation setting session followed this to enable Forum members to assist in setting the LHEES priorities. (Appendix B – Details the membership of the Forum) Climate Change Board The LHEES Officer and other members of the Climate Change Board have played a pivotal role in shaping the LHEES and establishing its priorities. The Community Planning Partnership The LHEES Officer has liaised with the Community Planning Partnership to align LHEES priorities with the Community Planning Partnership’s Regional Climate Change Plan for Argyll and Bute. Engagement with Distribution System Operators (DSO) The LHEES Officer has engaged with both Scottish and Southern Energy Network (SSEN) and Scottish Power Energy Network (SPEN) by attending their stakeholder engagement events and participating in their wider consultation process. Engaging with both (DSOs)1 is vital to progressing the LHEES, as grid constraints will be a significant barrier to decarbonising heat. 1 Distribution Network Operators (DNOs) are currently transitioning to becoming DSOs in order to fulfil the duties that will be required for the grid to transition to net zero. The transition requires the electricity system to be managed in a much more dynamic way.
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Page | 6 Argyll and Bute LHEES 2.4 Elected Members The Policy Lead for Climate Change is a member of the Climate Change Board and was able to engage with the LHEES process. Other elected members have received updates on the LHEES every few months through reports to the Policy and Resources Committee. The LHEES consultative draft was presented to the Full Council to ensure that all Elected Members had the opportunity to contribute and shape the Strategy and Delivery Plan. A public consultation process was then undertaken, and the Strategy and Delivery Plan were revised to take account of the feedback received from the various consultation processes outlined in Figure 2. The final version of the Strategy and Delivery Plan was presented to Full Council before being adopted. 2.5 Public consultation The Council conducted a public consultation on the draft LHEES Strategy and Delivery Plan. A total of 112 responses were received, and the pertinent feedback has informed the final version of the Strategy and Delivery Plan. 2.6 Next steps Once adopted the LHEES Strategy and Delivery Plan will be published on the Council's website. It is important to emphasise that this does not mark the end of the engagement process; instead, it will facilitate broader stakeholder participation. Given that the LHEES was data-led, the initial stage focused on establishing the evidence base to enable informed engagement with wider stakeholders. Stakeholder input will continue to shape the LHEES Strategy and Delivery Plan, as the LHEES is characterised by its iterative nature, and the documents are designed to be dynamic and adaptable rather than static. The Council plans to establish an interagency delivery group to develop detailed actions to implement LHEES priorities. In addition, the LHEES Officer will continue to work closely with the Community Planning Partnership while they develop a Regional Climate Change Plan for Argyll and Bute.
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Page | 7 Argyll and Bute LHEES 3. Setting the scene-Policies The LHEES is influenced by a range of different local and national policies, strategies, and targets. These are detailed in the following subsections. 3.1 National Policies In 2018, the Intergovernmental Panel on Climate Change (IPCC) advised that to reach the 1.5°C target set in the Paris Climate Accord, the world needs to reach net zero carbon emissions by 2050. The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 set an ambitious target for Scotland to reach net zero by 2045. Argyll and Bute’s LHEES is primarily driven by Scotland’s statutory targets for greenhouse gas emissions reduction and fuel poverty. Several national policies are relevant, particularly the Heat in Buildings Strategy, the Heat Network Act, and the Fuel Poverty Act. These policies are described below, followed by a table with further relevant national policies (Table 2). Heat in Buildings Strategy The Heat in Buildings Strategy, published in 2021, sets out a vision that by 2045, Scotland’s homes and buildings will be cleaner, greener and easier to heat and no longer contribute to climate change. The strategy prioritises improvements to the fabric of buildings to reduce energy demand, alongside a focus on zero emissions heating systems. Argyll and Bute’s LHEES will contribute to the national targets set out in the Heat in Buildings Strategy by identifying measures for reducing building emissions and potential heat network zones. In the Heat in Buildings Strategy, the Scottish Government committed to providing a regulatory framework for zero emissions heating and energy efficiency. The Heat in Buildings Bill, which went under consultation in November 2023, proposes a minimum energy efficiency standard for private landlords by the end of 2028, and for owner- occupiers by 2033. It also proposes a ban on polluting heating systems in all buildings by 2045. The consultation closed in March 2024. The Heat in Buildings Bill is scheduled to go through the legislative process in 2025. Social Housing Net Zero Standard The Scottish Government has established targets to improve the energy efficiency of social housing. Previously, these have been set through the Energy Efficiency Standard for Social Housing (EESSH). EESSH2 guidance required all social housing to meet an energy efficiency rating of EPC band B by 2032. In November 2023, the Scottish Government launched a consultation on a new Social Housing Net Zero Standard, which will replace EESSH2. The proposed new standard
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Page | 8 Argyll and Bute LHEES includes setting a minimum fabric efficiency rating (different to current EPC ratings) and introducing a requirement to replace polluting heating systems with clean alternatives by a backstop date of 2045, with possible interim targets before then. Heat Networks Act Heat networks supply multiple buildings with heat or cooling from a central source or sources. This avoids the need for individual boilers or electric heaters in every building. The Heat Networks (Scotland) Act 2021 defines a heat network as either a district heating system or a communal heating system. The Act provides the legislative framework to set up and regulate heat networks. It requires local authorities to review areas within their constituency that are potentially suitable for heat networks. This LHEES will function as the main vehicle by which Argyll and Bute Council will conduct this review. Fuel Poverty (Scotland) Act 2019 The Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019 describes “a fuel- poor household as one where: • more than 10% (20% for extreme fuel poverty) of net income is required to pay for their reasonable fuel needs after housing costs have been deducted • the remaining household income is not enough to maintain an acceptable standard of living, defined as at least 90% of the UK Minimum Income Standard (MIS) once childcare costs and disability or care benefits are deducted.” Source: Fuel poverty - Home energy and fuel poverty - gov.scot (www.gov.scot) The interim set of targets laid out in the 2019 Act are that by 2030, no more than 15% of households in Scotland are in fuel poverty, and no more than 5% are in extreme fuel poverty. This is with the aim of achieving the main target of no more than 5% of households in Scotland in fuel poverty and no more than 1% in extreme fuel poverty by 2040. Inadequate energy efficiency in domestic properties can contribute to occupants experiencing fuel poverty. By improving the energy efficiency of homes, fuel consumption can be reduced, and this can lift some households out of fuel poverty. Energy Performance Certificate reform The Energy Performance Certificate (EPC) rating evaluates a building based on various criteria, amalgamating them to generate an overall rating. However, there are limitations to this approach because the criteria cannot be separated, potentially skewing the ratings. For instance, one element of the rating considers the cost of using the building's heating system, which can disadvantage homes powered by electrical heating. As a result, this methodology does not accurately measure the building's energy efficiency. To address this issue, the Scottish Government conducted a consultation on EPC reform, proposing new metrics, such as a fabric rating. Under these proposals, metrics will not be amalgamated;
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Page | 9 Argyll and Bute LHEES consequently, they will provide a more accurate assessment of the building's energy efficiency. Table 2: Summary of relevant national policies Name Description Targets/Aims Climate Change Climate Change (Emissions Reduction Targets) (Scotland) Act 2019 Targets to reduce Scotland’s emissions of all Green House Gas (GHG) to net-zero. 2045: Net zero GHG emissions 2040: 90% reduction 2020: 56%2 Update to the Climate Change Plan 2018–2032 Sets out a pathway to deliver Scotland’s climate change targets, including ambitions for Scotland’s buildings. Multiple targets, including at least 50% of buildings heated using zero emission systems by 2030 Housing Heat in Buildings Strategy 2021 Sets out a pathway to reduce emissions from buildings and to remove poor energy performance as a driver for fuel poverty. By 2030, majority of buildings should achieve EPC band C, and 1 million homes use zero emission heating Heat in Buildings Bill (scheduled to go through the legislative process in 2025) Proposed new laws around minimum energy efficiency standards and prohibiting direct emissions heating systems. Although it is expected that biomass will not be prohibited. Minimum energy efficiency standards to be met by: 2028 for Private landlords 2033 for owner-occupiers Social Housing Net Zero Standard Proposed new energy efficiency standard that replaces EESSH2. Sets a minimum fabric efficiency rating for each home rented by social landlords. 2033: Fabric energy efficiency rating 2045: Clean heating in all socially rented homes Housing to 2040 Sets out the vision and route map for housing in Scotland to 2040. Existing homes are adapted and retrofitted to improve their energy efficiency and decarbonise their heating Energy Heat Networks (Scotland) Act 2021 Requires local authorities to review whether one or more heat network in the local authority is suitable for construction. National Target to achieve a combined supply of thermal energy by heat networks of: 2030: 6 TWh 2027: 2.6 TWh 2 The Climate Change Committee highlighted in March 2024 that these interim targets were unreachable. The Scottish Government are expected to amend or remove these interim targets in the Climate Change Act later in 2045 whilst still maintaining the end goal of reaching net zero by 2045. (BBC News, 2024 - https://www.bbc.co.uk/news/articles/ce9941nzq4yo)
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Page | 10 Argyll and Bute LHEES Heat Networks Delivery Plan Sets out how provisions of the Heat Networks (Scotland) Act 2021 will contribute to increasing heat networks in Scotland. The targets are set out in the Heat Networks (Scotland) Act 2021. Fuel Poverty Fuel Poverty (Scotland) Act 2019 Defines fuel poverty and requires the creation of strategies to tackle fuel poverty. 2040: < 5% of households in fuel poverty, < 1% in extreme fuel poverty. National Planning Framework 4 Sets out Scotland’s spatial principles, regional priorities, national developments, and national planning policy. Multiple A comprehensive list of national policies is outlined in Appendix C. 3.2 Local policies Argyll and Bute Council has several policies and strategies relevant to the LHEES. These cover topics such as climate change, energy efficiency, fuel poverty, decarbonisation, and land use planning. The following table lists the most relevant policies (Table 3). Table 3: Summary of relevant local policies and strategies Name Description Argyll and Bute Council Decarbonisation Plan (2022- 2025) The Council’s Decarbonisation Plan commits to developing a net zero emissions roadmap for Council services, buildings, and assets. The plan also features a Decarbonisation Tracker, which monitors progress in installing energy efficiency measures. It also tracks progress in replacing fossil fuel energy sources with low or zero carbon heating sources in schools, offices, and other buildings. Argyll and Bute Outcomes Improvement Plan (2024 – 2034) The ABOIP sets out the key challenges the area faces. This includes • its remote and rural geography, with many communities living in economically fragile areas, • the area's reducing and ageing population, • the need to improve the authorities' critical economic infrastructure, • tackling deprivation and health inequalities, and • unlocking the area's full economic and employment potential. The new 10-year Outcome Improvement Plan has three outcomes. Outcome 2 focuses on ensuring everyone in the local authority has access to a warm home.
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Page | 11 Argyll and Bute LHEES Local Development Plan 2 (2024) Adopted in February 2024, the plan provides the local planning framework for the Council area. The LDP vision states, “Argyll and Bute is an economically diverse and successful area based on sustainable and low-carbon development….” The plan includes policies that encourage energy efficiency and the development of heat networks where viable. Section 5 of the LDP2 outlines a range of policies for diverse and sustainable economies. These policies recognise the unique characteristics of places within Argyll and Bute and the unsuitability of off-the-peg approaches for these communities. Local Housing Strategy (2022- 2027) The Local Housing Strategy outlines the Council’s priorities in relation to housing over a five-year period. The second of the four LHS pillars is “energy efficiency, climate change and poverty”. This pillar seeks to take action to improve energy efficiency and increase the decarbonisation of the fuel source. The pillar also outlines the actions required to be taken to address fuel poverty. Argyll and Bute Anti-Poverty Strategy 2018- 2022 The council’s vision is for an Argyll and Bute where no-one lives in poverty. Everyone should be able to achieve their potential and feel healthy, happy and valued. “We want to be a place where everyone understands that tackling poverty is everyone’s responsibility. We believe that if we act locally and in partnership, we can make a real difference.” This strategy is based on four key objectives: • To listen to people and families experiencing poverty and make sure their voice is heard. • To support people experiencing poverty to move from dependence to independence. • To ensure our information and services are easy to access. • To provide services that meet the needs of people experiencing poverty. Argyll and Bute Child Poverty Action Plan Review 2022-2023 The plan outlines the role that housing condition, poor energy efficiency, and high energy demand play in perpetuating child poverty. It also outlines the detrimental impacts of living in a cold, damp home on child health and development. The plan outlines a series of actions to help alleviate energy- related child poverty. Economic Development Strategy (2024- 2034) The Council's economic development strategy recognises that Argyll and Bute is particularly well placed to benefit from the potential of the area’s natural capital resources and its role in providing green jobs and achieving net zero across key industries. It has four strategic pillars. Actions required to reach net zero is evident in three of the four pillars. Pillar 1: People – Supporting job opportunities in energy and new industries such as the green economy.
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Page | 12 Argyll and Bute LHEES Pillar 3: Planet - Delivering net zero and improving our biodiversity by supporting the sustainable growth of clean energy production (i.e. hydro, solar, wind and biomass). Local energy production could be an effective mechanism to both decarbonise and tackle fuel poverty. The plan outlines the need to modernise and have greater flexibility in energy distribution. Pillar 4: Prosperity - seizing opportunities in the net-zero economy and promoting blue and green economies. Strategic Housing Investment Plan (2024/25 – 2028/29) The SHIP identifies priority housing projects which support the delivery of local and national strategic housing targets, as well as helping to increase the housing supply across other tenures as appropriate. One strand of the SHIP outlines the need to meet energy efficiency standards to support households with unprecedentedly high energy costs. Scheme of Assistance The scheme sets out how the Council will support eligible households in improving their property condition. This fabric-first approach is key to effective decarbonisation. 3.3 Progress to net zero in Argyll and Bute The Council recognises climate change as one of the biggest threats to communities. Consequently, the Council has made a clear commitment to be a net zero organisation by 2045. The LHEES will build on work already occurring within Argyll and Bute to reduce emissions. This section provides an overview of some activities that will help Argyll and Bute achieve net zero. 3.3.1 Plans and strategies Argyll and Bute Council Decarbonisation Plan Over the last five years, Argyll and Bute Council has successfully reduced its carbon emissions by 27%. The Council is committed to investing £1.2 million to reduce carbon emissions further. The Decarbonisation Action Plan Tracker details the actions planned to realise this ambition. The plan is shared publicly on the Council’s Climate Change webpages, and progress against the tracker is reported to the Policy and Resources Committee. Net Zero Route Map Work is underway to build on the Decarbonisation Plan by developing a Net Zero Route map to provide further details on the journey to net zero.
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Page | 13 Argyll and Bute LHEES Community Planning Partnership The Community Planning Partnership has recently appointed a Climate Change Action Project Manager who is responsible for leading on delivery of a new regional Argyll and Bute Climate Action Plan. This plan will work in conjunction with the LHEES to reduce carbon emissions generated by heating homes and buildings. Carbon Neutral Islands The Scottish Government Carbon Neutral Islands project aims to support six islands to become carbon neutral by 2040. The six islands participating in the programme are: Islay, Barra, Great Cumbrae, Hoy, Raasay and Yell. Each island has completed carbon audits, developed community climate change action plans and investment strategies, and identified learning and good practice that can be shared with other Scottish islands. Argyll and Bute Council sits on the newly formed Local Authority Advisory Group to support the implementation of the Carbon Neutral Island project, ensuring alignment and coordination with wider Local Authority activity and reciprocal sharing of information. 3.3.2 Education and Training The Argyll and the Isles Countryside Trust (ACT) is a key partner in progressing towards net zero. ACTNow has provided Carbon Literacy Training and support to assist the Council in attaining Bronze Standard Carbon Literacy Accreditation throughout the organisation. A citizen who is carbon-literate understands the impact of climate change on themselves and others. They possess the knowledge and skills to minimise their own and others' carbon footprint. Providing accreditation to elected members and officials enables them to take into account the carbon implications when making decisions. 3.3.3 Energy Efficiency and Decarbonising buildings Argyll and Bute Council Non-Domestic Energy Efficiency Projects Carbon emissions associated with the Argyll and Bute Council’s estate and buildings account for over 20% of the Council’s overall carbon footprint. In 2021, the Council identified 50 individual energy efficiency projects for its non-domestic buildings, including schools, offices, and leisure centres. By May 2024, 49 out of 50 of these energy efficiency projects had been delivered, with an annual carbon saving of 357 tonnes. Area-Based Schemes (EES:ABS) Energy Efficiency Scotland Area Bases Scheme (EES: ABS) is a Scottish Government grant funding scheme for local authorities to offer installation of energy efficiency measures to homes in areas of low income and fuel poverty. As a non-stock-owning Council, Argyll and Bute’s programme differs from that of other local authorities by inviting applications from throughout the entire Argyll and Bute area - with geography being no barrier to be able to take advantage of the Scheme. The Scheme has been delivered in Argyll and Bute since 2013, and £21,134,881 has been spent on measures from inception
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Page | 14 Argyll and Bute LHEES to July 2023. The Scheme is available to eligible private owners and private rented tenants in Argyll and Bute. It takes a fabric-first approach, installing the most suitable type of insulation for the property, helping to reduce harmful carbon emissions and, in turn, reduce fuel costs. To the end of the Project Year in June 2023, the Council spent all its 2022/23 budget allocation of £2,011,323, plus an additional £300,000, which was approved by the Scottish Government to meet the demands of an increased number of applications. In this programme period, 281 homes were insulated. The programme year for 2023/24 ends in June 2024 and the budget of £1,979,827 is predicted to be spent in full. The Council hopes the Scottish Government will award similar amounts to continue the programme in 2024/25. Warmer Homes Scotland Starting in 2022, the Council and Argyll Community Housing Association (ACHA) worked together on a programme of applying external wall insulation on mixed tenure blocks of properties in Tarbert, Bute and Cowal. Utilising a Special Project EES:ABS grant of £984,400 from the Scottish Government, the programme was able to support eligible private owners and privately rented properties within the blocks, with ACHA utilising Warmer Homes Scotland funding for their stock. Energy Company Obligation (ECO) ECO was first introduced in 2013 and legally obliges energy suppliers in the UK to deliver energy efficiency measures to low-income and fuel-poor domestic premises. It is in its 4th iteration. It is designed to tackle fuel poverty and help reduce carbon emissions. Between October and December 2023, 18,455 measures were installed through ECO4 in the local authority area. Councils have set out expanded qualifying criteria for ECO4Flex Funding in their local authority so the scheme can take into consideration the unique qualities of specific areas. Argyll and Bute Council has published its Statement of Intent, outlining the eligibility criteria for the period from April 2022 to March 2025. Achieving standards for social housing Argyll and Bute Council is one of the few councils that transferred all its housing stock and consequently has no direct control over social housing. However, the Council continues to work in partnership with housing associations to improve energy efficiency in line with the targets and standards set by the Scottish Government. For example, the warmer homes project. Previously, these standards have been set through the Energy Efficiency Standard for Social Housing (EESSH) and EESSH2 (see Section 3.1). The Registered Social Landlords in Argyll and Bute were making significant progress towards achieving full compliance with EESSH2 targets by 2032. However, in November 2023, the Scottish Government
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Page | 15 Argyll and Bute LHEES launched a consultation on a new Social Housing Net Zero Standard, which will replace EESSH2. The proposed new standard includes setting a minimum fabric efficiency rating (different to the current EPC rating) and introducing a requirement to replace polluting heating systems with clean alternatives by 2045. Argyll and Bute Council will continue to work jointly with the Housing Associations, at their request, to meet these standards. Campbeltown wastewater heats the Aqualibrium leisure centre In 2018, a joint venture between Argyll and Bute Council, Scottish Water Horizons and SHARC Energy Systems enabled Campbeltown’s Aqualibrium leisure centre to be heated by wastewater from the Kinloch Park Pumping Station. The heat-from-wastewater technology was one of the first of its kind and was funded by Scottish Water Horizons and the Scottish Government’s Low Carbon Infrastructure Transition Programme (LCITP). Home Energy Scotland Home Energy Scotland is a key partner for the Council in delivering EES:ABS, energy efficiency advice, and funding checks for residents. During 2022/23, Home Energy Scotland interacted with 4,266 households, compared to 3,268 in the same period the previous year, an increase of 31%. Strategic Housing Investment Programme Heat Network Infrastructure The Council has developed a Strategic Housing Investment Plan that identifies priority housing projects to support the delivery of both local and national strategic housing targets, as well as help to increase the supply of housing across other tenures as appropriate. The Council will investigate the possibility of installing infrastructure for shared ground loops and heat networks when infrastructure is being installed for new homes. For example, a proposed housing project in Lochgilphead is located near a potential heat network area. Implementing shared infrastructure can help overcome the challenge of high infrastructure costs and increases the likelihood of developing the network. ALIenergy ALIenergy works across Argyll and Bute to promote sustainable energy use and renewable energy generation, to address fuel poverty and reduce carbon emissions. During 2022/23, they received 1,246 enquiries, delivered 2,858 advice sessions, and made 1,130 referrals to partners and/or funds. The Affordable Warmth Team secured £180,582 in client gains from crisis intervention support through energy vouchers, alleviation of fuel debt and help with energy bills. Argyll and Bute Rural Growth Deal- Creating a Low Carbon Economy for Islay Argyll and Bute Rural Growth Deal (RGD) is an agreement between the Scottish Government, the UK Government and Argyll and Bute Council to bring about long-term strategic approaches to improving the regional economy. In October 2019, the Scottish
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Page | 16 Argyll and Bute LHEES and UK governments committed to investing up to £25 million in the Argyll and Bute Rural Growth Deal. The RGD comprises of several projects one of which is ‘Creating a Low Carbon Economy for Islay’. The Mull and Iona Community Trust’s AMAZE project The Mull and Iona Community Trust is an organisation focused on improving the quality of life for the residents of Mull and Iona, addressing problems of geographic isolation and economic and social exclusion in remote and rural communities. The AMAZE project is a collaborative project between the trust and residents who want to limit fossil fuel use on the islands. They received funding to work with a consultant to develop a local energy plan, to help transform the islands into a “zero emissions, energy secure, self- reliant, and thriving place with efficient homes…driven by a local community ethos”3. The project has concluded the research phase and is seeking funds to recruit project staff to develop and deliver the work. Proposals include examining the feasibility of heat networks on the islands and working with public and private property owners to decarbonise. 3.3.4 Heat Networks According to the Heat Networks (Scotland) Act 2021, heat networks encompass both district and communal heating. Argyll and Bute has district heating systems, such as the Dunbeg district heating system, operated by West Highland Housing Association. This scheme uses biomass to provide heat to social housing. The authority also has examples of operational heat networks such as the heat network in Campbeltown that uses wastewater. The Council and its stakeholders have conducted several research projects to assess the feasibility of heat networks, such as the Iona Heat Network, the AMAZE heat networks, and the RGD and Carbon Neutral Islands project in Islay. RSLs have also assessed the feasibility of district heating systems to heat social housing stock. As part of the LHEES process, the Council has collaborated with Zero Waste Scotland and Buro Happold to identify potential sites for shared ground loops. In 2020, it commissioned Arup to identify potential district heating systems, and in 2023, it engaged Changeworks to identify potential Heat Networks based on the methodology outlined by the Scottish Government. 3 The Mull and Iona Community Trust (2024) The AMAZE Project: Working towards a zero emissions and secure energy future of our islands URL: https://www.mict.co.uk/projects-services/amaze-project/. (Accessed: 02/04/2024).
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Page | 17 Argyll and Bute LHEES 4 Setting the scene -Baseline Data Age, dwelling type, wall construction, tenure, and heating fuel are key factors that impact energy performance, operational costs, and living conditions in buildings. Home Analytics data for Argyll and Bute has been used to benchmark key property statistics against national data found in the Scottish House Condition Survey, 2021. 4.1 Domestic buildings Property age and construction type for domestic buildings Property age can be used to predict construction type, which is useful when planning appropriate retrofit interventions across many buildings. Properties built before 1919 are likely to be of a solid wall construction, from brick or stone, with timber floor and roof construction. Table 4 depicts the age profile of domestic properties in Argyll and Bute. Table 4: Property ages per property type within Argyll and Bute. Source: Home Analytics v.3.9 Property Type Pre- 1919 1919- 1949 1950- 1983 1984- 1991 1992- 2002 Post- 2002 Total Detached house 5,641 910 5,468 1,067 1,363 2,662 17,111 Semi-detached house 1,157 788 4,334 297 575 832 7,983 Mid-terraced house 621 297 2,367 122 132 277 3,816 Small block of flats/dwelling converted into flats 3,784 1,011 1,368 238 399 588 7,388 Block of flats 1,456 255 2,050 208 313 407 4,689 End-terraced house 629 251 1,873 104 106 269 3,232 Large block of flats 39 2 262 374 131 337 1,145 Flat in mixed use building 2,403 109 336 124 227 109 3,308 Stone buildings are likely to have a high conservation value and might be within conservation areas or be listed. This can make the path for retrofitting and upgrades much more difficult. Retaining the facing stone in such buildings is often essential to the character of the area; this presents unique retrofit challenges. Cavity wall construction became commonplace from the 1920s onwards and is still built today. Like traditional construction, cavity wall construction commonly uses timber for floor and roof construction. Walls are constructed in two rather than a single leaf. While cavity walls are currently one of the most popular insulation upgrades, cavity wall insulation is generally not suitable for buildings with stone construction as no gap is present for cavity wall insulation. Solid walls must be insulated either from the inside or the outside. This will
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Page | 18 Argyll and Bute LHEES cost more than insulating a standard cavity wall, but the total savings on heating bills will also be higher. Additionally, cavity wall constructed properties are much more likely to incorporate damp proof courses and Portland cement than traditionally constructed properties. More recent cavity wall constructed properties (post-1980) are likely to have partially filled cavities. System-built usually refers to post-war non-traditional construction housing that is not cavity wall constructed. Such housing is normally utilitarian in design and has low conservation value. This is advantageous regarding potential external wall insulation interventions; however, these properties have a range of unique designs making standardised retrofit plans challenging. In Scotland, timber frame construction superseded cavity wall construction as the primary method of housebuilding in the early 1980s. The proliferation of timber frame construction in Scotland has coincided with the incremental increase of insulation standards. Older properties may have minimal mineral wool insulation between timber studs, whereas newer properties may have up to 140mm of phenolic foam or air-tight barriers. Increasing insulation standards have been the main driver in the increase in depth of the timber structure, with older properties having around 75mm timber studs in comparison to 140mm in modern buildings. Figure 3: Property types by age of building in Argyll and Bute Table 515 illustrates the insulation status of residential buildings in Argyll and Bute. Notably, of the total domestic building stock, 32% are uninsulated solid brick or stone. This 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Distribution of property ages within property types in Argyll and Bute Pre-1919 1919-1949 1950-1983 1984-1991 1992-2002 Post-2002
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Page | 19 Argyll and Bute LHEES statistic is particularly significant considering that solid wall buildings are the most common type in the area, and only one in five of these buildings are insulated. This highlights the considerable challenge of improving insulation levels in the council area. Table 51: Construction types of properties within Argyll and Bute. Source: Home Analytics v.3.9 Cavity Timber Frame Solid brick or stone System built All construction types Insulated Uninsulated Insulated Uninsulated Insulated Uninsulated Insulated Uninsulated Total 10,718 (22%) 5,696 (12%) 6,903 (14%) 4,038 (8%) 3,603 (7%) 15,726 (32%) 1,190 (2%) 798 (2%) 48,672 (100%) Tenure of domestic buildings The type of property tenure directly impacts the pace and extent of retrofit installations. Specific policies targeting public sector housing, such as EESSH/ EESSH2, have proven to accelerate change. The private sector has experienced slower progress as it has not been required to comply with these energy efficiency standards. Additionally, property owners investing in insulation and decarbonised heating systems have not seen a strong return on their investment, resulting in lower installation levels in the private sector. Just under a fifth of the domestic properties in Argyll and Bute are social housing (Figure 4). Despite some financial support for these properties, it is challenging for Registered Social Landlords (RSLs) to allocate funds for retrofit works to comply with energy efficiency requirements while simultaneously maintaining affordable rents. The majority of properties in the local authority area are owner-occupied (68%), and 15% are privately rented (Table 6). Consequently, if the authority is to meet its net zero ambitions, it must develop a retrofit strategy for privately owned properties. Table 6: Tenure split of properties within Argyll and Bute. Source: Home Analytics v.3.9 Owner Occupied Local Authority Privately Rented Housing Association 33,209 (68%) 0 (0%) 7,087 (15%) 8,372 (17%) Mixed-tenure properties provide an additional retrofit challenge due to having multiple owners within the same building. Just under a fifth of properties in Argyll and Bute are mixed tenure (Table 7). These owners have different priorities or capital investment plans, and this can delay or reduce the extent of any retrofit. However, less than a fifth of the total housing stock in Argyll and Bute is located in a mixed-tenure building.
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Page | 20 Argyll and Bute LHEES Figure 4: Pie chart of property tenure split within Argyll and Bute Table 7: Mixed tenure and single tenure properties split in Argyll and Bute. Source: Home Analytics v.3.9 Tenure Type Single tenure Mixed tenure 41,119 (84%) 7,553 (16%) Figure 5: Pie chart of mixed tenure split within properties in Argyll and Bute 33209 68% 7087 15% 8372 17% Tenure split of properties within Argyll and Bute Owner Occupied Privately Rented Social Rented 41119 84% 7553 16% Split of mixed tenure properties in Argyll and Bute No Yes
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Page | 21 Argyll and Bute LHEES Fuel poverty Data from the Scottish House Condition Survey and the Scottish Index for Multiple Deprivation (SIMD) have been used to assess fuel poverty within Argyll and Bute. Argyll and Bute had one of the highest rates of fuel poverty in Scotland (32%), according to the 2017-19 Scottish House Condition Survey.4 The gap between Argyll and Bute’s fuel poverty rate and the national average has historically fluctuated but has always been higher than the national average (Figure 6). While this trend provides an overall historical insight, the definition of fuel poverty changed in 20194, meaning direct comparisons cannot be drawn with the statistics published prior to 2016-2018. Table 8: Scottish House Condition Survey figures showing the three-year average fuel poverty rates across Argyll and Bute and Scotland. Source: Scottish House Condition Survey 2013-22 Households 2013-15 2014-16 2015-17 2016-18 2017-19 2019-22 Argyll and Bute 16% 45% 44% 29% 32% 5data unavailable Scotland 9% 34% 27% 25% 24% 31% 4 Scottish Government (2021) Scottish House Condition Survey: Local Authority Analysis 2017-2019, 23 February. Available at: https://www.gov.scot/publications/scottish-house-condition-survey-local-authority- analysis-2017-2019/pages/6/ (Accessed: 02/04/2024). 5 Due to the Covid-19 Pandemic, these are the most up-to-date local authority figures published by the (SHCS) BOX 1: Scottish Housing Condition Survey -Fuel Poverty Data The 2017-2019 figures are the most recent local authority estimates of fuel poverty published by the Scottish Housing Condition Survey. This is because the local authority data uses a three-year pooled dataset to ensure sufficient sample sizes, and data was not collected during the COVID-19 pandemic. The next local authority level Scottish Housing Condition Survey data is expected to be published in 2026 covering the 2022-2024 period. Box 2- Fuel Poverty Definition post-2019 A household is classified as fuel poor if, in order to maintain a satisfactory heating regime, total fuel costs necessary for the home are more than 10% of the household’s adjusted net income (after housing costs), and if after deducting fuel costs, benefits received for a care need or disability and childcare costs, the household’s remaining adjusted net income is insufficient to maintain an acceptable standard of living.
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Page | 22 Argyll and Bute LHEES Figure 6: Three-year average fuel poverty rate across Argyll and Bute compared to the Scottish average. Note that from the years 2016-18 onwards, the definition of fuel poverty differed to the previous years. Fuel poverty is a function of several variables, including income and how energy is used in the home, neither of which have been analysed as part of the LHEES. Fuel poverty is also driven by the energy efficiency of homes and by fuel prices. While the average fuel poverty rate in Argyll and Bute stands at 32%6, there are areas with much higher concentrations of fuel poverty. Forty-three per cent of Argyll and Bute’s population live in areas classified as ‘remote rural’, and 4.2% live in areas classified as ‘accessible rural’. Rural populations are potentially at greater risk of fuel poverty.7 The rate of fuel poverty is likely to have worsened since 2019 due to the recent cost-of-living crisis and energy price hikes. In a national context, Argyll and Bute has lower than average levels of deprivation as its SIMD ranking places its 18th out of 32 local authorities. A total of 4,992 properties in Argyll and Bute fall within SIMD deciles one and two (see Box 3). Only 4% of Argyll and Bute’s social housing and 4% of owner-occupied properties fall within these two deciles of high deprivation (Figure 7). The Council has used the LHEES process to investigate where these areas with a high probability of multiple deprivation also have a high number of category one ‘heat pump 6 Scottish Government (2019) Scottish House Condition Survey: Local Authority Analyses 2010-2012 to 2016-2018. Available at: Scottish House Condition Survey: Local Authority Analyses 2010-2012 to 2016- 2018 - gov.scot (www.gov.scot) (Accessed: 02/04/2024). 7 Changeworks (2022) A perfect storm: Fuel poverty in rural Scotland 16% 45% 44% 29% 32% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2013-15 2014-16 2015-17 2016-18 2017-19 Comparison of three-year average fuel poverty rates across Argyll and Bute and Scotland Argyll and Bute Scotland
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Page | 23 Argyll and Bute LHEES ready’ properties. Prioritising these areas for heat pumps could potentially provide warmer homes and lower bills. Figure 7: Tenure split amongst SIMD Decile One and Two Properties within Argyll and Bute Housing Association 2,037 4% Owner Occupied 2,074 4% Privately Rented 881 2% Other SIMD Category Properties 43,680 90% Tenure split of properties within SIMD Deciles One and Two within Argyll and Bute Housing Association Owner Occupied Privately Rented Other SIMD Category Properties Box 3: Scottish Index for Multiple Deprivation as a proxy for fuel poverty The Scottish Index for Multiple Deprivation (SIMD) dataset has been used to assess fuel poverty within Argyll and Bute. SIMD is a standard tool for identifying areas with relatively high levels of deprivation and was published in 20201. The SIMD: • Is a relative measure of deprivation across small areas in Scotland. • Looks at multiple deprivation. 'Deprived' does not just mean 'poor' or 'low income'. It can also mean people have fewer resources and opportunities, for example in health and education. SIMD data can be used to: • Compare overall deprivation of small areas. • Compare the seven domains of deprivation. • Compare the proportion of small areas in a Council region that are very deprived. • Find areas where many people experience multiple deprivation. • Find areas of greater need for support and intervention. SIMD data is split into ten deciles covering the whole population: one is most deprived and ten is least on the scale.
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Page | 24 Argyll and Bute LHEES Primary fuel type for domestic buildings In Argyll and Bute, the use of electricity as the primary fuel type in domestic buildings is around three times the national average (Table 9). Although gas is the most common fuel type, the number of homes using gas is approximately half of the national average. In some areas, such as Oban, it is not mains gas but rather “town gas”; gas delivered to the town and then filled into tanks, from which it is piped to individual residences. Biomass (wood) or solid fuel (coal) is six times more prevalent as the primary heating source than in Scotland as a whole (Table 9). This figure is likely to be higher, as many households may have another fuel as their main heating source, but they often do not use that heating at all or only at certain times of the year due to the cost. Instead, many households heat a room or two using a wood-burning stove or open fire as the wood fuel is often free. Table 9: Primary fuel type statistics for domestic properties in Argyll and Bute. Source: Home Analytics v.3.9 Primary Fuel Type Argyll and Bute Scotland Mains Gas (including Town Gas) 20,211 (42%) 2,016,000 (82%) Electricity 16,270 (33%) 262,000 (11%) Oil 7,211 (15%) 129,000 (5%) LPG 1,753 (4%) 18,000 (1%) Biomass/Solid Fuel 2,871 (6%) 36,000 (1%) No Fuel 356 (1%) - Figure 8: Primary fuel types across properties in Argyll and Bute relative to the Scottish national average. 1 10 100 1000 10000 100000 1000000 10000000 Electricity LPG Mains Gas Oil Biomass/Solid Fuel Primary Fuel Type in Argyll and Bute and Scotland Argyll and Bute Scotland
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Page | 25 Argyll and Bute LHEES Energy Performance Certificate data for domestic buildings Social housing generally has much better energy efficiency than the other property tenures. In Argyll and Bute 8% of social housing is rated EPC band A-B compared to the national average of 6% (Table 10), suggesting a strong programme of existing retrofitting works have taken place in this tenure type in Argyll and Bute. Table 10210 shows that 21% of privately rented and 18% of owner-occupier properties have an EPC band C. This is approximately half as many than the national average of 43% for both tenures. More work is required to encourage landlords and homeowners to improve energy efficiency measures. Table 102: EPC data for domestic properties in Argyll and Bute. Source: Home Analytics v.3.9 EPC Band Owner Occupied Private Rental Social Housing Argyll and Bute Scotland Argyll and Bute Scotland Argyll and Bute Scotland A-B (81-100) 6% 4% 6% 7% 8% 6% C (69-80) 18% 43% 21% 43% 53% 59% D (55-68) 36% 38% 32% 35% 29% 28% E (39-54) 23% 11% 21% 9% 7% 6% F-G (1-38) 17% 4% 20% 6% 2% 1% All 100% 100% 100% 100% 100% 100% Figure 9: Split of EPC bands across all property tenures in Argyll and Bute relative to the Scottish national average. 0% 20% 40% 60% 80% 100% A-B (81-100) C (69-80) D (55-68) E (39-54) F-G (1-38) EPC Data for Domestic Properties in Argyll and Bute Relative to National Figures Owner Occupied Social Housing Private Rental Private Rental (Scotland) Owner Occupied (Scotland) Social Housing (Scotland)
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Page | 26 Argyll and Bute LHEES Carbon emissions from domestic buildings It is noteworthy that all dwelling types in Argyll and Bute have lower carbon emissions than the national average. Carbon emissions are relatively consistent across the different dwelling types in Scotland as a whole, ranging from 67.4 kg/m²/yr to 70.5 kg/m²/yr. In contrast, Argyll and Bute’s tenements and detached housing have lower emissions than other housing types in Argyll and Bute. When compared to the national average this equates to approximately 18% and 15% lower carbon emissions per m², respectively. Figure 10: Carbon emissions (kg/m²/yr) for each dwelling type in Argyll and Bute. Source: Home Analytics v.3.9 4.2 Non-domestic buildings Non-domestic buildings make up only 17% of the total building stock in Argyll and Bute. Within non-domestic buildings, the majority (90%) are privately owned; this is 7% more than observed within the total domestic building stock (Figure 11). Significant partnership working will be necessary with non-domestic building owners if these buildings are to be decarbonised. 63.3 67.0 59.9 63.5 55.4 60.3 70.4 68.2 70.5 69.8 67.4 69.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 Carbon Emissions (kg/sqm/yr) Argyll & Bute CO2 emissions estimate (kg/msq/yr) National CO2 emissions estimate (kg/msq/yr)
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Page | 27 Argyll and Bute LHEES Figure 2: Breakdown of privately owned and public owned non-domestic building stock in Argyll and Bute Non-domestic buildings in Argyll and Bute require significantly less heat than domestic properties, equating to only 38% of the total heat demand across all properties (Table 11). Table 31: Total heat demand for domestic and non-domestic buildings in Argyll and Bute. Source: Non-Domestic Analytics v.1.1 Non-domestic total heat demand (MWh/yr) Domestic total heat demand (MWh/yr) Total heat demand (MWh/yr) 488,583 (38%) 806,891(62%) 1,295,474 Figure 12 demonstrates that the correlation between the number of properties and heat demand is not always directly proportional and depends on the property’s end use. Non- domestic typologies such as residential properties, including care homes, sheltered housing and short-term/holiday lets, are most common within Argyll and Bute, with proportionally high heat demand. Storage facilities and offices constitute the next greatest frequencies of non-domestic stock within Argyll and Bute, yet heat demand is significantly lower. Although hotels make up a relatively low number of properties, they have high heat demands. Hotels are often of stone construction and located on the seafront. Consequently, they are exposed to the elements, which probably accounts in part for their high heat demand. In addition, hotels have high-intensity heating to maintain continuous temperature control. 10% 933 17% 8,374 90% 8,691 83% 40,298 0 10,000 20,000 30,000 40,000 50,000 60,000 Non-domestic Domestic Private-Public Split within Domestic and Non-Domestic Stock in Argyll and Bute Public Owned Privately Owned
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Page | 28 Argyll and Bute LHEES Figure 12: Non-domestic property count and total heat demand in Argyll and Bute Primary fuel type in non-domestic buildings Over half of non-domestic properties across Argyll and Bute use electricity as their main fuel source, a total of 6,317 properties (Table 42). Electricity is used to meet 66% of the total heat demand for non-domestic properties in Argyll and Bute, providing 236,428 MWh/year of heat. Figure 13 shows that oil and other fuels make up a slightly higher percentage of heating demand when comparing to property counts. This suggests that properties using these fuel types have a higher heating demand than those fuelled by electricity. Table 42: Non-domestic property count by main fuel type. Source: Non-Domestic Analytics v.1.1 Electricity Mains gas Oil Other 6,317 (66%) 1,014 (11%) 1,580 (16%) 713 (7%) 0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Non-domestic property count and heat demand Count Heat Demand (kWh/yr)
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Page | 29 Argyll and Bute LHEES Table 135: Heat demand by main fuel type (MWh/yr). Source: Non-Domestic Analytics v.1.1 Electricity Mains gas Oil Other 236,428 (48%) 80,257 (16%) 111,346 (23%) 60,552 (12%) Figure 13: Count of non-domestic properties by main fuel type and respective heat demands within Argyll and Bute Figure 3: SHQS Dwellings failures (%, all tenures). Source: SHCS 2017-2019 6,317 66% 1,014 11% 1,580 16% 713 7% 236,428 48% 80,257 16% 111,346 23% 60,552 12% 0% 10% 20% 30% 40% 50% 60% 70% Electricity Mains Gas Oil Other Relationship between count of non-domestic properties by main fuel type and respective heat demands (MWh/yr) Count Sum of Heat demand (MWh/yr)
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Page | 30 Argyll and Bute LHEES 4.3 Key Conclusions High prevalence of Low prevalence of uninsulated stone or brick buildings The most prevalent type of wall construction in Argyll and Bute is solid wall construction, with 32% of domestic buildings being built of brick or stone. Only one in five of these buildings are insulated. Insulating solid walls is more labour and resource- intensive and requires a higher degree of skill to install compared to other insulation installations. EPC band D or below 76% of Owner Occupied and 73% of Privately Rented properties have an EPC Band D and below. This is often due to the building's age, the type of heating fuel used and levels of insulation. Currently, 38% of social rented properties have an EPC Band D or below, and therefore, these properties will require energy efficiency measures being installed in order to meet the Social Housing Net Zero Standard (SHNZS). households using oil or LPG as their heating fuel Three times as many properties are heated by heating oil in Argyll and Bute compared to Scotland as a whole (15% and 5%, respectively) and 4% use LPG as their heating source as opposed to 1% nationally. The LHEES should prioritise households with heating systems powered by fuels that are both expensive and emit carbon. This is because costly fuel types can contribute to higher rates of fuel poverty. fuel poverty Argyll and Bute has higher levels of fuel poverty, with 32% compared to the national average of 24%. Owner occupiers Argyll and Bute has a higher than average level of owner-occupier buildings (68% ). To decarbonise these buildings the LHEES will have to provide information and support for owner occupiers. mixed tenure buildings Mixed-tenure buildings are often difficult to decarbonise as building owners have different abilities to invest in energy efficiency and decarbonisation measures. However, only 16% of Argyll and Bute’s buildings are mixed tenure. flats Having fewer flats means that property densities are lower and less suited to heat networks Dwellings meeting the Scottish Housing Quality Standard Argyll and Bute had fewer dwellings meeting the Scottish Housing Quality Standard than any other mainland council. This means additional building repair works are often required before energy efficiency measures are installed. Non-Domestic buildings Argyll and Bute has a low proportion of buildings in the non-domestic sector. Most buildings (66%) use electrical heating and have a relatively low heat demand. The exception to this is non-domestic residential properties such as nursing homes which have a considerable heat demand. Buildings with a high heat demand are often fuelled by fossil fuel.
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Page | 31 Argyll and Bute LHEES 5 Vision and Priorities Argyll and Butes LHEES vision is: Figure 15: Argyll and Butes LHEES Vision and how it relates to the LHEES Priorities LHEES Focus Decarbonisation is a significant undertaking that will take decades to accomplish. Therefore, the LHEES takes a long-term approach, spanning approximately 20 years. This section delineates the priorities for this iteration of the LHEES, acknowledging that not all issues can be addressed simultaneously. LHEES Priorities The Argyll and Bute LHEES has identified 8 priorities which are split into 3 categories as can be seen in Figure 16.
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Page | 32 Argyll and Bute LHEES Figure 16: Argyll and Bute’s LHEES priorities by category Guiding Principles The priorities for Argyll and Bute's LHEES have been established based on the following guiding principles: • Developing an approach that considers the unique challenges encountered by island and remote rural communities. • Ensuring LHEES actions do not exacerbate the Council's “housing emergency”. • The area’s natural assets are harnessed and optimised. • Ensuring a “Just Transition” to net zero. • Opportunities for community wealth building are maximised.
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Page | 33 Argyll and Bute LHEES 5.1 Address Grid Infrastructure The Council is firmly committed to achieving the decarbonisation of heating in homes and buildings by 2045. To accomplish this goal, the Council will need to collaborate closely with the area's two Distribution System Operators (DSOs) SSEN and SPEN. The severely constrained electricity grid poses a significant obstacle to the mass electrification of heat in the short to medium term. Collaboration with both DSOs is essential to develop a grid system that can effectively support the Council's net zero commitment. Furthermore, the area's unique geography presents challenges when it comes to upgrading grid infrastructure. For example, enhancing electricity capacity on islands requires the costly upgrade of subsea cables. Renewables such as wind, solar, hydro etc were not part of the LHEES methodology. However, the Argyll and Bute LHEES has included them as a potential solution to addressing some of the grid constraint issues. 5.1.1 Local electricity generation In 2023, the total operational capacity of renewable developments was over 1552MW which is approximately 10% of the Scottish total. In addition, there is potential to increase clean energy production to five gigawatts8 in the next decade. Current renewable installations such as windfarms and hydro can produce significantly more energy, but grid constraints mean this energy cannot be exported to the grid. These installations are turned off until the grid can facilitate the energy they generate. The Council and stakeholders are keen to harness this potential electricity. The LHEES Delivery Plan will investigate potential technological solutions which would utilise energy locally. For example, making green hydrogen, storing surplus electricity in industrial-scale batteries similar to the ones used in the Annan Distillery project, storing heat in thermal batteries or other technological solutions which would maximise local energy production and distribution. Argyll and Bute is well placed to significantly contribute to Scotland and the UK’s Net Zero ambitions. In 2023, Argyll and Bute produced over 1.5 Gigawatts of clean energy, approximately 10% of the Scottish annual total. This energy largely feeds into the national grid with limited benefits to the local area except for the local distribution of Community 8 Argyll and Bute Council Development and Economic Growth. Argyll and Bute Council’s Economic Strategy Refresh: 2024-2034. Available at: https://www.argyll- bute.gov.uk/moderngov/documents/s205254/ARGYLL%20AND%20BUTE%20COUNCILS%20ECONOMIC %20STRATEGY%20REFRESH%202024-2034.pdf (Accessed: 12/07/2024).
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Page | 34 Argyll and Bute LHEES Benefit Funds. The local grid is currently constrained, and there is a need to modernise it to enable greater flexibility in addressing local energy issues. It is important to note that the renewable energy generation projects listed below are not an exhaustive list but provide some examples of renewable energy generation in Argyll and Bute. ABRA The Council will continue to work with its partners through the Argyll and Bute Renewables Alliance (ABRA), focusing on: • tackling strategic issues that currently limit the potential to generate and distribute clean energy, • encourage and enable local people to take up green employment opportunities, and • make the best use of clean energy in their communities. Local Energy Scotland Local Energy Scotland supports communities across Scotland to engage with, participate in and benefit from the energy transition to net zero. Through the Community and Renewable Energy Scheme (CARES), Local Energy Scotland offers a range of financial support and advice to community groups to get local energy projects up and running. Local energy generation and distribution The LHEES Delivery Plan will explore the viability of developing local energy generation and distribution projects. These projects will seek to provide clean and affordable energy to local communities facing challenges in accessing clean and affordable energy due to grid constraints. Tiree Community Development Trust -TREL (Tiree Renewable Energy Limited) In 2022, the Tiree Community Development Trust (TREL) produced 2,013,645kWh. This is enough electricity to supply 540 average UK homes for an entire year. Iona Renewables Iona Renewables is a community-led organisation which has commissioned consultants to draw up plans to develop a heat network to supply heat to 36 households in Iona village, as well as to Iona Abbey, which Historic Environment Scotland owns. If funding can be found it will use a ground source heat pump, powered by a 100KW wind turbine. The heat network will cut carbon emissions by an estimated 240 tonnes of CO2 annually.
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Page | 35 Argyll and Bute LHEES 5.1.2 Solar PV potential Solar PV can: • support the decarbonisation of heat when combined with electrical heating. • reduce the running cost of electric heating by topping up electricity generation. • provide opportunities for local generation and enable the transition to electrical heating systems even when there are grid constraints. In Argyll and Bute, the majority of domestic buildings consist of houses, making up 81% of the total, in contrast to the national average of 65%. This indicates substantial potential for the installation of solar thermal and solar PV systems in this local authority. Map 1 depicts solar suitability at data zone level. The Delivery Plan will explore solar further. Map 1: Suitability of Solar PV at data zone level
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Page | 36 Argyll and Bute LHEES 5.2 Address supply chain constraints and shortage of skills The energy efficiency and decarbonisation workstream has the potential to generate substantial economic benefits for businesses and the labour markets. These advantages include: • Enhancing the job offer with higher paid, higher skilled jobs. • Bolstering the supply chain. • Offering opportunities for technological enhancement. • Providing businesses with the opportunity to grow by operating in the rapidly expanding green economy. In Argyll and Bute there is a noticeable deficiency in the expertise required to implement energy efficiency and heat decarbonisation measures. This is evidenced by the fact that Argyll and Bute is struggling to secure installers for the 'Great British Insulation Scheme’. This skills shortage has the following implications: • It presents a significant obstacle to achieving the goal of decarbonising homes and buildings in Argyll and Bute by 2045. • This shortage results in higher installation costs, as skilled individuals must be brought in from afar due to the lack of local expertise. • The absence of a locally available skilled workforce poses significant challenges in ensuring servicing and maintenance of decarbonised heat technologies. • Inability to unlock the economic benefits of heat decarbonisation such as high-value job opportunities in a growth sector. In 2022, Historic Environment Scotland (HES) conducted a skills audit in Argyll and Bute. This research highlighted while most trades faced difficulties attracting personnel, the prevalent theme was the challenge of drawing in and retaining young individuals within the construction industry. This finding has been backed up by several training providers offering courses in energy efficiency measures or renewable energy technologies. These courses have either been undersubscribed or have had to cease due to lack of demand. The LHEES Delivery Plan will outline the actions that need to be taken by the Council and key stakeholders to increase the number of people choosing this career route. It will outline how Argyll and Bute intends to ensure the availability of training and skills development programs, as well as other measures required to increase the number of skilled individuals in this sector.
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Page | 37 Argyll and Bute LHEES 5.3 Improve education and awareness of decarbonisation requirements and solutions The complexity of the decarbonisation process necessitates a thorough understanding of the various technologies and energy efficiency measures. Without such knowledge, building owners will encounter challenges in identifying the most suitable low or zero carbon heating system for their specific building. An educational campaign for the general public is imperative to elucidate available options, their respective advantages and disadvantages, and maintenance requirements. The Argyll and Bute LHEES process involved surveying professionals in the energy efficiency and housing management sectors. The findings revealed that although they possessed theoretical knowledge of low and no carbon heat technologies and energy efficiency measures, the majority lacked insight into the most suitable technology or energy efficiency measures for their homes. Thus, it is vital to provide building owners with the necessary advice and support to facilitate decarbonisation. Despite multiple agencies offering funding and guidance, identifying the most appropriate agency to consult can be arduous. Delivering decarbonisation and energy efficiency objectives hinges on building owners having access to tailored decarbonisation plans, comprehensive information about available funding opportunities, and experts adopting a “whole building approach”. Building owners often seek to transition to low or zero carbon energy or implement energy efficiency measures following unexpected events, such as boiler malfunctions or building repairs necessitated by inclement weather. Timely access to impartial advisors is essential to ensure that building owners can successfully implement these measures. If access to such advice is delayed, building owners may proceed with repairs and maintenance without taking the opportunity to install decarbonisation measures. There are various tools on the market which could offer building owners bespoke advice to enable them to ascertain the most appropriate decarbonisation pathway for their building. Promoting the use of such tools could be advantageous, as they could result in higher rates of energy efficiency and decarbonisation measures being installed. However, it is vital for the Council to be confident that such tools provide accurate advice. Promoting tools that provide inaccurate or incorrect advice would create credibility issues for the Council. To summarise, there is a need to: • Dispel the myths about heat pumps and heat networks by providing case studies and good news stories.
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Page | 38 Argyll and Bute LHEES • Conduct a comprehensive nationwide education and awareness campaign on heat decarbonisation and energy efficiency measures. • Increase awareness of decarbonisation technologies for building owners. • Identify energy efficiency measures to reduce heat demand. • Ensure that building owners are aware of where to access tailored advice and support. • Offer guidance on the cost of installing decarbonisation technologies and direct building owners to funding opportunities. Some of these actions will be the responsibility of national agencies while others will be actions needed to be taken within Argyll and Bute’s LHEES Delivery Plan. 5.4 Ensure a “Just Transition” to Net Zero The Argyll and Bute LHEES aims to facilitate a "Just Transition," which refers to a fair and equitable transition to zero direct emissions heating. The strategy will: not focus on: New build properties The 2024 Building Regulations require all new homes to meet an insulation standard and have a zero direct emissions heating system9. So, these building types will not need to be addressed by the LHEES. Non-domestic buildings Non-domestic buildings only make up a small proportion of buildings in Argyll and Bute, most have relatively low heat demand, and most have decarbonised heating systems. For these reasons these building types have not been prioritised in the LHEES. Mixed tenure buildings Are often difficult to decarbonise as building owners have different abilities to invest in energy efficiency and decarbonisation measures. Also, they make up a low proportion of buildings in the Local Authority and so have not been prioritised. Buildings in Conservation areas Planning restrictions and the building construction make it difficult to insulate and install a zero direct emissions heating source. Older buildings and Category 3 buildings Building construction make it difficult to insulate and install a zero direct emissions heating source. 9 The 2024 Building Regulations have recently been revised to allow biomass
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Page | 39 Argyll and Bute LHEES focus on areas which: • are off gas grid. • have high concentrations of Category 1 and 2 buildings, indicating a suitability for heat pumps. • Are suitable for heat networks, small-scale heat networks such as shared ground loops or geothermal district heating systems. As well as these spatial areas, the strategy also considers buildings and building archetypes irrespective of geography. The strategy will: focus on non-spatial priorities such as: • Domestic properties. • Properties which are private rented or owner-occupied. • Properties which have poor energy efficiency. • Properties where energy efficiency is the driver for fuel poverty. The rational for selecting these areas of focus will be outlined throughout this section of the document. Off-gas grid households will be prioritised for transition to a zero direct emission heating system Off-gas grid households are more at risk of suffering fuel poverty due to the high cost of oil, LPG or electricity. As a result, it is a priority of Argyll and Bute’s LHEES to ensure off- gas grid properties receive better insulation and affordable heating systems to help reduce the likelihood of fuel poverty. Social landlords have installed energy efficiency measures and heat decarbonisation measures in their housing stock, but the same pace of implementation has not occurred in private rented or owner-occupier homes. Social Rented There are 2,960 off-gas grid socially rented homes within Argyll and Bute, all of which are owned by housing associations. Map 2 illustrates the concentration of off-gas grid socially rented properties (by count) within areas of Argyll and Bute.
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Page | 40 Argyll and Bute LHEES Map 1: Count of off-gas socially rented (housing association only) properties in Argyll and Bute The data zones10 with the highest counts are: Data zone Social Rented Private Rented Owner Occupied Whisky Isles – 05 114 39 196 Oban South – 05 111 21 152 Oban South - 07 167 38 58 Mull, Iona, Coll and Tiree – 03 105 102 301 Oban North – 04 97 14 93 Private Rented properties The Heat in Buildings Bill proposes that rental properties failing to meet energy efficiency and heat decarbonisation standards by the implementation deadline will be prohibited from being re-let. The Council has declared a “housing emergency”, so it is crucial not to deplete housing stock and worsen the acute housing shortages. The LHEES will focus on 10 Data zones are defined areas which are used for the analysis of statistics across the public and private sector in Scotland. Data zone boundaries can be viewed here: https://spatialdata.gov.scot/geonetwork/srv/api/records/7d3e8709-98fa-4d71-867c-d5c8293823f2
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Page | 41 Argyll and Bute LHEES supporting rental properties to meet energy efficiency and heat decarbonisation standards, to ensure that these properties are able to be let. Another reason why the LHEES will prioritise rental properties is that the Council recognises that tenants have limited agency and, consequently, are often unable to reap the benefits of heat decarbonisation and energy efficiency as they are not able to make decisions about implementing energy efficiency measures or whether to install a decarbonised heating system. Around 17% of the total off-gas housing stock is privately rented. Map 3 illustrates the count of privately rented domestic properties within Argyll and Bute. Map 2: Count of off-gas privately rented properties in Argyll and Bute Data zone Social Rented Private Rented Owner Occupied Bute – 04 21 170 241 Whisky Isles - 03 25 122 230 Knapdale – 01 6 106 308 Whisky Isles – 02 61 106 346 Mull, Iona, Coll and Tiree – 03 105 102 301 The Whisky Isles has the highest number of socially rented and privately rented properties. Identifying zones with significant concentrations of social and privately rented properties is beneficial for implementation, as the costs of the projects can decrease due to economies of scale.
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Page | 42 Argyll and Bute LHEES Owner Occupied The majority of off-gas grid properties within the local authority are owner-occupied (17,085). Map 4 depicts the data zones with the highest concentrations of this property tenure. Map 3: Count of off-gas owner-occupied properties in Argyll and Bute Data zone Social Rented Private Rented Owner Occupied Mull, Iona, Coll and Tiree - 01 53 69 468 Cowal North – 01 8 100 450 Mid Argyll – 03 8 86 431 Cowal South – 01 23 82 403 Loch Awe – 03 27 101 396
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Page | 43 Argyll and Bute LHEES Conservation areas and older buildings The LHEES methodology requires councils to consider conservation areas and listed buildings. Argyll and Bute’s public consultation exercise highlighted that the prevalent view was to deprioritise older buildings due to the challenges of decarbonising them. The baselining exercise found the following: Total number of properties within conservation areas in LA 6,920 Total number of listed buildings in LA 2702 Conservation properties as a percentage of total domestic properties in LA 14% Listed properties as a percentage of total domestic properties in LA 6% Buildings in conservation areas are often Category 3 buildings “with tertiary potential for heat pump retrofit(i.e. properties in need of significant fabric upgrade to be heat pump ready) or those less suited to heat pump technology with electric (storage or direct electrical) or biomass likely to be the most viable decarbonisation technology”. Therefore, Argyll and Bute’s LHEES does not prioritise decarbonising older buildings.
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Page | 44 Argyll and Bute LHEES A Just Transition for communities and businesses Ensuring a Just Transition is not only important for individuals and households, but it is also important to consider how communities can benefit from the journey to net zero. This includes developing mechanisms to increase opportunities for residents to access higher- skilled and higher-paid jobs installing decarbonised heat or energy efficiency measures. Also, decarbonising in a way that allows local businesses to expand and grow their supply chain. The Delivery Plan will work with key stakeholders to develop a range of actions to maximise job and business opportunities. Opportunities from a ‘Just’ approach The opportunities are as follows: • Eligible tenants and homeowners in off-gas grid areas can access funding from EES- Area Based Scheme, Warmer Homes Scotland, or ECO to obtain energy efficiency measures or clean heating systems for their homes. • Householders in off-gas grid privately rented properties face higher rates of fuel poverty than in Scotland as a whole. Targeting these properties for energy efficiency interventions will help address the high rates of fuel poverty in the council area whilst simultaneously meeting net zero requirements. • To significantly diminish the prevalence of owner-occupier and private properties rated EPC band D or lower in Argyll and Bute. This is important as the local authority area has a high proportion of Owner Occupier (76%) and Privately Rented properties (73%) with an EPC band D and below. Challenges of a ‘Just’ approach Argyll and Bute faces several challenges in achieving a just transition, such as: • Remote rural and island areas encounter higher costs than urban areas. Research suggests that island communities pay between 13% and 185% more for goods compared to their urban counterparts. Therefore, the costs of decarbonising is likely to be higher in Argyll and Bute than in urban areas. • Argyll and Bute faces additional challenges in engaging installers or tradespeople to carry out energy efficiency and decarbonisation works due to local skills shortages and being very remote from the central belt. This issue is especially prevalent in islands that have to pay a premium for installers to travel there. • The majority of building owners will not be in a heat network and so will not benefit from low or no-cost connection to a decarbonised heat source and instead will have to invest £10-20k to install a heat pump. This discrepancy is unfair and disadvantages building owners in remote rural and island communities.
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Page | 45 Argyll and Bute LHEES • Some landlords may be unable to engage an installer, connect to the grid due to constraints or be able to find a suitable decarbonisation solution. In such cases, these landlords will be unable to let their properties, which will exacerbate Argyll and Bute’s housing emergency. Therefore, the LHEES has prioritised supporting the private rented sector in transitioning to clean, low-cost heat. • Many communities are not scheduled to have grid infrastructure improvements for many years. So, they will be unable to reap the benefits of transitioning to clean, low-cost heat. The LHEES will explore opportunities for local generation and distribution to, in part, address this disadvantage. Grid infrastructure constraints will mean that the LHEES will focus on decarbonising heat sources in buildings that already use electricity or are in off-gas grid areas with grid headroom to allow for the transition to low—or zero carbon heating systems. • Homeowners are also not a homogeneous group. Homeowners on passport benefits have access to a wider range of funding support to enable them to install energy efficiency measures and decarbonise their heat source. Most other homeowners do not have access to funding to decarbonise. • The process of enrolling tenants on the area based scheme is challenging, and therefore, funding sources for this tenure type are restricted. • The Council does not own social housing stock, so it must work closely with the various Registered Social Landlords to target the retrofit of off-gas social rented properties. • Most households in Argyll and Bute live in areas of low heat density and so will not have access to heat networks. This leaves very limited options for heat decarbonisation and risks some homes being left behind. 5.5 Tackling Fuel Poverty Addressing fuel poverty remains a priority for the Council. The ongoing cost of living crisis is felt particularly hard in rural and remote rural areas. Argyll and Bute: • Ranks third lowest in median pay rate among all Scottish local authorities. • Faces higher costs, ranging from 13% to 185% higher than urban UK areas. • Has around 70% of households at risk of fuel poverty.
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Page | 46 Argyll and Bute LHEES Since 2022, high fuel prices have radically increased fuel bills. Figure 47 shows that the average fuel bill in Argyll and Bute is 62% higher than in Scotland as a whole. Figure 47: Average Fuel Bill (£ pa) in Argyll and Bute and Scotland. Figure 58: Average Energy Demand (kWh/year) in Argyll and Bute and Scotland Source: Home Analytics v.3.9 High fuel costs combined with homes in Argyll and Bute requiring more heat to feel comfortable than homes in other parts of Scotland will likely push more households into fuel poverty. This is illustrated in Figure 58, which indicates that energy demand in Argyll and Bute exceeds 31,000 kilowatt hours per year, while the Scottish average is lower at 22,000 kilowatt hours per year. This equates to almost a third higher energy demand in Argyll and Bute. Living in a cold home can have significant impacts: • Health impacts: Cold homes have been linked to several health conditions, especially affecting young children, older, vulnerable, and disabled residents. • Child poverty impacts: A report on child poverty in rural and island regions highlights that fuel costs are a major contributor to fuel-related poverty in these communities. This is due to reasons such as larger and older housing stock, and reliance on expensive oil or electric heating. Interventions focusing on reducing costs for these households, such as improving insulation to lower energy bills, could be particularly helpful. • Impact on life chances: Research indicates there is a relationship between poor housing and lower educational attainment.11 This means children living in inadequate housing are more likely to have lower educational attainment, negatively impacting their life chances. 11 Shelter (2013) People Living in Bad Housing URL: https://assets.ctfassets.net/6sxvmndnpn0s/6pmYen0M6fWEJCcKqEq5sY/95d09421aeeec22dcc37c6cd202f c5bc/People_living_in_bad_housing.pdf 1,604 993 Average estimate Scotland average Average Fuel Bill (£ pa) 31,131 22,751 Average estimate Scotland average Average Energy Demand
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Page | 47 Argyll and Bute LHEES 5.8.1 Fuel poverty consideration influenced the delivery areas selected for heat decarbonisation Although most of the Council does not have a traditional gas network, some of the towns have ‘town gas’; where gas is delivered to the town, gas tanks are filled, and gas is then piped around the town. The unit price of gas is considerably lower than electricity. Therefore, tenants and homeowners could be driven into fuel poverty if they switch from a gas heating system to an electric heat source. The LHEES has a duty to ensure that any decarbonisation plans would not drive people into fuel poverty. Consequently, the Council is prioritising areas which are off gas grid, as transitioning to low or zero carbon heating is less likely to result in increased energy bills. 5.8.2 Poor energy efficiency as a driver of fuel poverty Map 5 shows the areas where poor energy efficiency is likely to be acting as a driver for fuel poverty. Map 5:12 Probability of fuel poverty across Argyll and Bute 12 Map 5 is only an indication of the number of properties at risk of fuel poverty as a result of poor building energy efficiency. It does not account for the other variables that are drivers of fuel poverty (household
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Page | 48 Argyll and Bute LHEES Ranking Zones with highest Total Weighted Score, where poor energy efficiency is likely to be acting as a driver for fuel poverty 1 Garelochhead - 03 2 Bute - 04 3 Campbeltown - 04 4 Dunoon - 05 5 Garelochhead - 02 6 Loch Awe - 03 7 Cowal South - 02 8 Mid Argyll - 01 9 Oban South - 08 10 Bute - 01 11 Cowal South - 01 12 Mull, Iona, Coll and Tiree - 05 5.8.3 Energy Efficiency Interventions The data zones with the highest weighted scores, where poor energy efficiency is likely to be acting as a driver for fuel poverty, were assessed to determine the energy efficiency interventions required. Table 14 shows the scale of interventions needed. Table 14 The recommended energy efficiency interventions for the data zones with the highest weighted score, where poor energy efficiency is likely to be acting as a driver for fuel poverty. Data zone Loft insulation 0-99mm Single glazed windows Uninsulated walls (all construction types) Garelochhead - 03 50 72 204 Bute - 04 108 149 376 Campbeltown - 04 47 62 332 Dunoon - 05 62 75 404 Garelochhead - 02 26 34 157 Loch Awe - 03 169 94 348 Cowal South - 02 78 69 268 Mid Argyll - 01 74 136 204 Oban South - 08 13 42 258 Bute - 01 60 177 374 Cowal South - 01 74 115 434 Mull, Iona, Coll and Tiree - 05 75 55 236 All data zones 5,758 5,404 26,258 income, energy bills and how energy is used in the home). This, however, does not mean that poor building energy efficiency alone should be used as the sole indicator of fuel poverty risk, as it may highlight affluent areas with poor building energy efficiency.
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Page | 49 Argyll and Bute LHEES Table 15 shows the impact of installing these interventions on EPC ratings and the estimated cost of doing so. Table 15: Current EPC ratings, the cost of interventions and the impact on EPC ratings. Data Zone Current EPC rating bands A B C D E F G COST Garelochhead - 03 4 39 67 78 40 £30K Bute 04 3 34 97 125 124 49 £29K Campbeltown - 04 1 2 136 112 80 43 16 £11K Dunoon -05 4 91 239 91 23 6 £14K Garelochhead - 02 1 3 36 62 78 32 £24K Data Zone Post EPC A B C D E F G Garelochhead - 03 17 39 63 70 32 7 0 Bute 04 33 96 177 93 27 6 0 Campbeltown - 04 6 78 239 56 8 3 0 Dunoon - 05 13 76 315 43 6 1 0 Garelochhead - 02 24 44 49 62 31 2 0
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Page | 50 Argyll and Bute LHEES 5.8.4 Extreme fuel poverty areas and their suitability for energy efficiency measures
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Page | 51 Argyll and Bute LHEES 5.6 Building Sustainable and Energy Resilient Communities The majority of householders in island areas rely on fossil fuels such as oil and LPG to heat their homes and buildings. These fuel sources are transported to islands via ferries. This not only elevates fuel costs but also has fuel security implications as islanders are dependent on ferry services for their energy supply. Argyll and Bute’s LHEES Delivery Plan will encourage communities to devise local place- based plans outlining local bespoke solutions for reducing energy demand and decarbonising the heat source. These plans should prioritise reducing carbon emissions from heating homes and buildings and address energy security to fortify community resilience.
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Page | 52 Argyll and Bute LHEES 6 The Strategy for Decarbonising Heat The Scottish Government’s LHEES guidance requires councils to frame the strategy around six considerations relating to heat decarbonisation and energy efficiency. The six considerations are outlined in Table 16. Table 16: Summary of the LHEES considerations and how these relate to Argyll and Bute’s focus areas. LHEES Consideration Description How Considerations Relate to Argyll and Bute’s Priorities Off-gas grid Identifying decarbonisation pathways in off-gas grid areas. Most of Argyll and Bute’s geographical area is off-gas grid; therefore, off-gas grid areas will be a high priority for the LHEES. Poor energy efficiency as a driver for fuel poverty Identifying possible strategic locations where poor building energy efficiency acts as a driver for fuel poverty. Argyll and Bute has focused on this Consideration to address fuel poverty. Poor energy efficiency To identify strategic areas which display poor levels of energy efficiency. This is addressed in the off-gas grid consideration, as domestic buildings will have to be energy efficient prior to decarbonising the heat source. In non-gas grid areas, energy efficiency will be prioritised to ensure that when domestic homeowners transition from gas to other more expensive fuel sources, they will not be pushed into fuel poverty. On-gas grid buildings Identifying decarbonisation pathways in on-gas grid areas. This is a secondary priority for this LHEES as there is concern that moving from gas to other fuel sources could push households into fuel poverty unless the property is in good condition and is well insulated. Consequently, this LHEES focuses on improving energy efficiency and the quality of the buildings’ fabric in on-gas grid areas. In addition, investigations are currently underway to assess the suitability of the “town gas” network for a transition to hydrogen. We await the findings of this research and Governments’ policy position on hydrogen as a heating fuel. Heat Networks Traditional Heat Networks present decarbonisation options in densely populated areas with high heat demands. Due to Argyll and Bute’s geography, there are only five potential areas within Argyll and Bute that are suitable for heat networks, as defined by the methodology. Therefore, the traditional heat networks consideration has not been prioritised for this LHEES Low Linear heat density (LHD) heat networks. LHD is a means of relating annual heat demand to a connection distance. 1,000 kWh/yr/m is a low LHD and more suitable for rural areas Initial research suggests that there are 18 potential low LHD and 8 potential high LHD shared ground loop projects. The LHEES Delivery Plan prioritises exploring these options further. Mixed Tenure, Mixed Use and Historic Buildings Identifying where there are mixed tenure, mixed-use Argyll and Bute has a low level of mixed-use, mixed-tenure buildings. Therefore, this LHEES has not prioritised this consideration. Although it is acknowledged that there are a
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Page | 53 Argyll and Bute LHEES and historic buildings. These buildings are likely to require different approaches. considerable number of pre-1919 buildings, these are incredibly challenging to decarbonise using existing decarbonisation options. Consequently, these older buildings will be addressed in future iterations of the LHEES. Decarbonising the Heat Source Heat decarbonisation options include electrical heating, various types of heat networks or district heating schemes and in the future hydrogen could be used to heat homes and buildings. Table 17 sets out these options in more detail. Table 17: Heat sources by carbon emissions. Decarbonised/ Zero carbon or no direct emission heat sources. Low-emission or low-carbon heat sources Carbonised heat sources Electrical heating including: • Storage heaters • Electric radiators • Electric boilers • Electric panel heaters • Heat pumps including: o Air to Air o Air Source, o Ground Source o Water Source Biomass, including wood-burning stoves and biomass boilers. Gas Hydrogen – May be used for heating homes and buildings in the future Bio-fuels Coal Traditional heat networks (as defined by the LHEES methodology) powered by: Waste heat from industrial processes, wastewater and mine water as well as being powered by electrical technologies, including water heat pumps. Heat networks/ District heating schemes which provide heat from biomass LPG Small Heat networks – shared ground loops and Geothermal (District Heating Schemes) Oil
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Page | 54 Argyll and Bute LHEES 6.1 Heat Pumps The LHEES methodology categorises buildings from 0 to 3 to determine which buildings are most and least suited for heat pumps. Table 18 indicates that 44% of domestic buildings in Argyll and Bute are suitable for a heat pump installation. Table 18: Percentage of domestic properties in Argyll and Bute under each building category assessed for heat pump suitability. Source: Home Analytics v.3.9 Building category Description % of domestic properties Category 0 Those properties already have a low or zero-emissions heating system. I.e. these properties have heat pumps or are connected to a heat network 9% Category 1 Those considered highly suitable for heat pump retrofit (i.e. well insulated properties with a wet heating system). 19% Category 2 Those with secondary potential for heat pump retrofit (i.e. properties in need of moderate fabric upgrades and or additional wet distribution to be heat pump ready) 25% Category 3 Those with tertiary potential for heat pump retrofit(i.e. properties in need of significant fabric upgrade to be heat pump ready) or those less suited to heat pump technology with electric (storage or direct electrical) or biomass likely to be the most viable decarbonisation technology 47%
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Page | 55 Argyll and Bute LHEES 6.1.1 Off-gas grid category 1 and 2 buildings Category 1 buildings are the most suitable for heat pump retrofit. There are 9067 Category 1 buildings in off-gas grid areas in Argyll and Bute. The zones with the highest concentrations of these homes are indicated on Map 6. Map 4: Off-gas Category 1 domestic properties in Argyll and Bute by count. The following data zones have the highest concentrations of Category 1 buildings. Ranking Zones with highest property counts based on category 1 selection Number of properties which are Category 1 1 Kintyre Trail - 03 248 2 Garelochhead - 04 215 3 Mull, Iona, Coll and Tiree - 03 212 4 Mid Argyll - 03 211 5 Mull, Iona, Coll and Tiree - 01 210 6 Mull, Iona, Coll and Tiree - 02 207 7 Benderloch Trail - 02 204 8 Oban South - 02 204 9 Kintyre Trail - 01 202 10 Greater Lochgilphead - 01 192
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Page | 56 Argyll and Bute LHEES Map 7: Off-gas Category 2 domestic properties in Argyll and Bute by count. In off-gas grid areas, there are 3651 category 2 properties. The following data zones exhibit the highest concentrations of Category 2 buildings. Ranking Zones with highest property counts based on Category 2 selection Number of properties which are Category 2 1 Loch Awe - 03 130 2 Greater Lochgilphead - 02 127 3 Oban South - 08 121 4 Oban South - 05 111 5 Whisky Isles - 02 109 6 Oban South - 07 102 7 Mid Argyll - 03 99 8 Whisky Isles - 04 97 9 Mull, Iona, Coll and Tiree - 03 86 10 Whisky Isles - 05 80
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Page | 57 Argyll and Bute LHEES 6.1.2 The scale of the challenge The magnitude of the challenge in Argyll and Bute is substantial, with 47% of residential buildings classified as Category 3 buildings. This necessitates significant fabric upgrades to accommodate a heat pump. In some instances, these structures may prove unsuitable for a heat pump altogether. 6.2 Heat Networks In the UK Government Department for Business, Energy and Industrial Strategy, a heat network is defined as: “Heat networks (also known as district heating) supply heat from a central source to consumers, via a network of underground pipes carrying hot water. Heat networks can cover a large area or even an entire city or be fairly local supplying a small cluster of buildings”. 13 Depending on their fuel source and efficiency levels, heat networks can reduce greenhouse gas emissions. Their design makes it simple to add new heat sources to the network with minimal disruption, making potential future expansions to existing networks cost-effective. Heat networks may also help to reduce householders’ energy bills and tackle fuel poverty if they are well-designed and operate efficiently using an appropriate heat source. Argyll and Bute have several small-scale heat networks or district heating schemes. 6.2.1 Heat Network Progress • Waste Water to fuel heat networks o In 2018, a joint venture between Argyll and Bute Council, Scottish Water Horizons and SHARC Energy Systems enabled Campbeltown’s Aqualibrium leisure centre to be heated by wastewater from the Kinloch Park Pumping Station. o The heat-from-wastewater technology was one of the first of its kind and was funded by Scottish Water Horizons and the Scottish Government’s Low Carbon Infrastructure Transition Programme (LCITP). The Council is keen to expand this project and is actively investigating this, as well as the viability of devising similar projects in other parts of the authority. 13 UK Government Department for Business, Energy & Industrial Strategy. What is a heat network? Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/696273/H NIP_What_is_a_heat_network.pdf). (Accessed: 04/07/2024).
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Page | 58 Argyll and Bute LHEES 6.2.2 Traditional Heat Networks To be efficient, economically viable and deliver value for money, heat networks must be well located. This means being in areas with sufficient heat demand and density to enable optimal performance. Argyll and Bute is generally a low heat dense region which limits the opportunities for heat network development. Argyll and Bute’s population density (13 persons per km2) is significantly lower than the Scottish national average (70 persons per km2). Heat network development also requires securing connections to the network from buildings with large, reliable, and long-term demand for heat. These are known as ‘anchor loads’ and are essential in allowing heat networks to operate efficiently. Potential Heat Networks Analysis was undertaken to identify the areas where heat networks present a decarbonisation pathway. The areas of greatest potential were identified based on heat density and the identification of anchor loads (see Appendix G for the full methodology). For the first iteration of the LHEES, only non-domestic buildings that the Council has full or partial control over were treated as potential anchor loads in the heat network zoning exercise. This is because the Council has greater control over the operation of these buildings and can guarantee their use as an anchor load. A total of five indicative heat networks have been identified from the analysis (Map 8).These are in: • Campbeltown, • Rothesay, • Lochgilphead (2) • Bowmore. Prior to the LHEES, the Council had conducted a pilot study on heat networks. In the study, 10 district heat network clusters were identified (Appendix H). The pilot study considered: • Oban, • Lochgilphead • Campbeltown as priorities for heat network development. This was due to the number of property connections, fuel poverty statistics, nearby waste heat sites and local development projects. However, further investigation will be required to determine if these are viable heat networks. The LHEES Delivery Plan will set out actions in this regard.
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Page | 59 Argyll and Bute LHEES Map 8: Heat network opportunities in Argyll and Bute as identified within LHEES
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Page | 60 Argyll and Bute LHEES 6.2.3 Smaller Heat Networks Argyll and Bute exhibits low heat density, with only 5 potential heat networks identified using the Scottish Government methodology. Consequently, the Council wished to explore the feasibility of smaller heat networks and partnered with Zero Waste Scotland and Buro Happold to identify potential sites suitable for shared ground loops. The detailed methodology for the selection criteria for this research task can be found in Appendix I. Map 9 below shows the location of the 26 potential Shared Ground Loop projects. Table 19 provides further details about each of the potential zones. The Delivery Plan will delineate the 26 potential projects. Following this, stakeholders will select projects for further exploration to assess their technical and financial viability. Table 19: Details of the potential shared ground loop projects
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Page | 61 Argyll and Bute LHEES Map 9: Location of potential shared ground loop projects Details of the potential shared ground loop projects Details of potential shared ground loop opportunities on Islay
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Page | 62 Argyll and Bute LHEES Heat Network Opportunities • 5 potential heat networks were identified by Changeworks using the Scottish Government methodology. • 10 potential District Heating Scheme clusters were identified by Arup. • 26 potential Shared Ground Loop Projects identified by Zero Waste Scotland/ Buro Happold. It is important to note that these potential heat networks were identified as part of a desk-based exercise and, hence, are only theoretically possible. Detailed site-level feasibility studies would be required to determine if they are viable projects. • The geology of the area makes geothermal energy a potential solution. The Delivery Plan will explore potential opportunities for Geothermal District Heating Schemes. Heat Network Challenges • Argyll and Bute is not a heat-dense area, so developing heat networks will be costly and generate more limited financial returns than networks built in heat-dense areas. Consequently, it won't be easy to leverage in private sector investment to build heat networks. • Local and Scottish Government capital budgets have been diminished in real terms. It will be challenging to find money to invest in heat network infrastructure. • Developing a heat network will require considerable staff resources. Current staff capacity is inadequate to fulfil this role. 6.3 Bespoke Solutions for Argyll and Bute Many households in Argyll and Bute are situated outside potential heat network zones or project areas. Also transitioning to a heat pump may be unfeasible due to the property's lack of suitability for heat pump retrofit due to the building's attributes or a lack of grid capacity. So other decarbonisation solutions must be considered, such as: 6.3.1 Biomass Biomass is not a zero direct emissions heat source, but the Energy Saving Trust classify it as a ‘lower carbon option’. Some farmers, hotels, council buildings, swimming pools, and other non-domestic buildings in Argyll and Bute transitioned to biomass following the introduction of the Scottish Government’s Renewable Heat Incentive (RHI). This scheme paid building owners per kWh of heat generated, enabling the monies invested in a biomass heating system to be recouped. Using biomass allows building owners reliant on oil, LPG or gas to move from fossil fuels to a lower carbon fuel. Biomass is important in rural areas as it: • Provides local employment • Provides free fuel for estate workers, farmers, other landowners, and local people who have scavenger licences, allowing them to find wood fuel on Forestry and Land
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Page | 63 Argyll and Bute LHEES Scotland sites. Without this free fuel, some of these households would fall into fuel poverty. • Is part of the circular economy using the waste wood product from timber harvesting or industrial processes. 6.3.2 Hydrogen and Gas mixed fuels Hydrogen and gas mix fuel is not a zero-carbon fuel but does allow for carbon emissions to be reduced by 20% and is one step in the decarbonisation journey. The advantage of this approach is that there is no need to invest in a new heating system as gas and 20% hydrogen mix can be used with the existing infrastructure. 6.4 Next steps The heat decarbonisation options set out above will be explored more fully in the Delivery Plan.
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Page | 64 Argyll and Bute LHEES 7 The Strategy- Energy Efficiency Spatial zoning is considered as part of the LHEES. There are two types of zones. Strategic zones present a visualisation of the potential pathways to decarbonise the building stock at a local authority level. Delivery Areas are at a higher granularity than strategic zones. These spatial zones should set out clusters of buildings within a strategic zone that could become a delivery project. While the Council has embraced a spatial approach for certain aspects of the LHEES methodology, it has not confined itself to exclusively utilising a spatial approach to deliver energy efficiency measures. Non-Spatial Approach to Installing Energy Efficiency Measures Argyll and Bute’s ABS programme is unique as it is not restricted to a particular spatial area within Argyll and Bute. This approach is necessary because of the sparsely populated nature of the council area, which results in only a small number of eligible households in certain areas. By covering all parts of Argyll and Bute, the ABS program ensures that all eligible households, regardless of their location within the local authority, can apply. The LHEES operates on the same principle. 7.1 Building fabric challenges in Argyll and Bute: A fabric-first approach to retrofit prioritises making the building envelope (walls, roof, floor, doors, windows) thermally efficient, alongside implementing repairs. This reduces a building’s heat demand before installing a decarbonised heating system. There was a professional consensus that it is crucial to take a fabric-first approach before installing a heat pump. Some funding streams, such as Warmer Homes, require recipients to agree to install all the offered insulation measures before they can have a heat pump or electric storage heaters installed. This approach of having to treat the building fabric comprehensively can be time-consuming and costly, potentially discouraging building owners from acting. A new school of thought recommends that heat pumps should be installed without having to deal with all the fabric requirements. While this could be more effective in reducing carbon emissions, it does have other potential implications, such as failing to reduce the building's heat demand, which could increase the cost of energy bills. In domestic settings, this could lead to fuel poverty. Social Rented Housing Around half of the homes in the local authority area do not meet the Scottish Housing Quality Standard, the regulatory benchmark for social housing condition. Nationally, 41% of dwellings in Scotland fell short of the SHQS in 2017-2019. Argyll and Bute is one of eight local authorities with failure rates higher than the Scottish average, as 52% of
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Page | 65 Argyll and Bute LHEES properties in the area failed to meet SHQS standards. Hence, considerable attention must be given to enhancing the housing condition prior to the installation of zero-carbon heating systems. Private Rented Housing Table 15 in the baseline section indicates that only 27% of privately rented properties in Argyll and Bute attained an EPC band C or higher, whereas 50% achieved a band C or higher in Scotland overall. Owner Occupied Housing In the baseline section, Table 15 indicates that only 24% of owner-occupied properties in Argyll and Bute have an Energy Performance Certificate (EPC) rating of band C or above. In contrast, in the rest of Scotland, 47% of properties have an EPC rating of band C or above. Additionally, 17% of domestic properties in Argyll and Bute have the lowest EPC bands (F and G), while only 4% in the rest of Scotland have these lower ratings, representing more than a fourfold difference. 7.2 Walls Figure 19 shows that more than half (54%) of walls in domestic buildings in Argyll and Bute are uninsulated. The baseline data concluded that this is considerably higher than in most other local authority areas in Scotland. Figure 19 Insulated and Uninsulated Walls by Construction Method 7.2.1 Insulated Solid Walls Figure 19 shows uninsulated solid walls account for the highest percentage of wall types in Argyll and Bute equating to 32%. Insulating solid walls is expensive and challenging and the public consultation exercise suggested that respondents were concerned about the 22% 12% 7%32% 3% 2% 14% 8% 0% Wall Construction & Insulation Cavity Construction (Insulated) Cavity Construction (Uninsulated) Solid Brick or Stone (Insulated) Solid Brick or Stone (Uninsulated) System Built (Insulated) System Built (Uninsulated) Timber Frame (Insulated) Timber Frame (Uninsulated) Unknown
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Page | 66 Argyll and Bute LHEES disruption that installing internal solid wall insulation would cause. Solid walls are ‘hard to treat’ and expensive but offer high thermal efficiency. Map 10 shows the zones with the highest level of uninsulated solid walls. Map 10: Solid walls as a percentage of the data zone Table 20 shows that around 70% of properties in the highest-ranking data zones have uninsulated solid wall properties, highlighting the scale of the challenge.
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Page | 67 Argyll and Bute LHEES Table 20: Data Zones with the highest percentage of solid wall properties Rank Name Solid Wall (% of Data Zone) 1 Mid Argyll - 04 79 2 Oban North - 02 75 3 Oban South - 04 73 4 Oban South - 03 71 5 Helensburgh Centre - 04 71 6 Greater Lochgilphead - 01 71 7 Oban South - 06 70 8 Oban South - 05 69 9 Helensburgh East - 06 69 10 Greater Lochgilphead - 05 67 7.2.2 Insulated Cavity Walls Cavity wall insulation offers a swift and convenient installation process, typically taking about an hour, in contrast to the 3-5 days required for internal solid wall insulation. As it is installed from the exterior, it causes minimal disruption to the household. This makes it a prioritised choice for the LHEES as it is a quick and cost-effective energy efficiency solution. However, it's important to note that preparing the building for cavity wall insulation may involve significant effort as the building has to be in good condition. Additionally, not all cavity wall properties are suitable for this insulation, as some cavities may be filled with rubble. Name Cavity Wall (% of Data Zone) 1 Helensburgh West and Rhu - 05 48 2 Helensburgh East - 05 43 3 Helensburgh North - 05 40 4 Lomond Shore - 04 39 5 Helensburgh North - 02 36 6 Oban South - 05 36 7 Helensburgh East - 03 36 8 Helensburgh East - 02 35 9 Helensburgh West and Rhu - 06 33 10 Lomond Shore - 05 31 SUMMARY • The proportion of uninsulated walls is higher than nationally, at 56% compared to 41% nationally. • Uninsulated Solid wall (solid brick or stone) 32% • Uninsulated Cavity wall 12%, • Uninsulated Timber frame 8% • Uninsulated System built 2%
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Page | 68 Argyll and Bute LHEES 7.3 Other measures SUMMARY • 10% of properties have single-glazed windows • 40% of dwellings have the required amount of loft insulation • All types of floors have very low levels of insulation. 7.4 The scale, cost and benefits of energy efficiency interventions Table 21 outlines the scale of the interventions required and the cost of doing these interventions. The table also illustrates the anticipated carbon benefits likely to be achieved through these interventions and the expected reductions in fuel bills. 10% 27% 40% 16% 7% Loft Insulation 0-99mm 100-249mm 250mm+ No Loft Unknown 10% 7% 2% 71% 10% Glazing Type Single/Partial Unknown Triple Double pre-2003 Double 2003 onwards 5% 7% 3% 95% 93% 97% Solid Suspended Unheated space/Other premise below Floor Construction & Insulation Uninsulated Insulated
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Page | 69 Argyll and Bute LHEES Table 21: Number of energy efficiency interventions required by estimated cost. The benefits of these interventions in terms of carbon emissions, EPC ratings and estimated fuel bills. Type of measure Number of measures in Argyll and Bute Cavity wall 4,848 Internal wall 13,000 External wall 5,677 Loft insulation (less than 100mm) 13,000 Flat roof insulation 191 Room in roof 7,982 Single glazing upgrade 5,159 Double glazing upgrade 39,600 Suspended floor insulation 23,000 Solid floor insulation 4,115 The impact of carrying out these interventions throughout Argyll and Bute Average SAP improvement 23.18 Average energy bill saving £948 Average CO2 saving (kg/yr) 2,600 The average cost to do all required measures £22,000 Carrying out the recommended energy efficiency interventions would improve the EPC ratings as follows. Current EPC Rating Future EPC Rating A 199 6332 B 1278 13334 C 9968 17820 D 15,223 5054 E 9,812 1136 F 5,500 226 G 1,931 9 7.5 Data Zones that require the most energy efficiency interventions Table 22 outlines the data zones which require the greatest number of interventions. Table 22: Number of interventions required by type. Data zone Loft insulation 0-99mm Single glazed windows Uninsulated walls (all construction types) Bute - 04 108 149 376 Bute - 01 60 177 374 Garelochhead - 03 50 72 204 Dunoon - 05 62 75 404 Lomond Shore - 03 62 21 232 Bute - 02 85 70 384 Helensburgh Centre - 02 79 26 520 Cowal South - 02 78 69 268 Bute - 03 90 108 350 Dunoon - 06 65 46 268 Garelochhead - 05 64 42 231 Rothesay Town - 01 42 49 248
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Page | 70 Argyll and Bute LHEES 7.6 Drivers for installing energy efficiency measures A range of drivers could be used to install energy efficiency measures. These are as follows: • The Area Based Scheme (EES: ABS) is available for eligible owner occupiers and tenants in the private rented sector. • Warmer Homes Scotland funding, as well as ECO and ECO4Flex funding. • The Council’s Scheme of Assistance can support eligible building owners in tackling building condition issues, enabling them to install energy efficiency measures. • The Social Housing Net Zero Standard will require RSLs to meet the energy efficiency standard. • The Heat in Buildings Bill will likely require building owners to meet an energy efficiency standard unless a zero direct emissions heating system is installed. These programmes and policies will play a crucial role in ensuring the installation of energy efficiency measures. 7.7 Challenges of achieving energy efficient buildings in Argyll and Bute There are significant challenges in ensuring Argyll and Bute has energy efficient buildings, such as • A higher proportion of domestic properties than seen nationally are EPC band E and below. • When compared with buildings nationally, a high proportion of the buildings in the local authority areas have inadequate insulation levels. • The authority has one of the highest levels of substandard buildings and buildings below tolerable standards. • The Council do not directly control the social housing in the area, limiting its influence in installing energy efficiency measures. • The bespoke building archetypes make it difficult to retrofit energy efficiency measures at scale.
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Page | 71 Argyll and Bute LHEES 8 Challenges This section provides an overview of the challenges of delivering on the LHEES priorities. 8.1 Geography Argyll and Bute is the second-largest local authority in Scotland, encompassing nearly 9% of the nation’s total land area. Consequently, the cost of upgrading the electricity grid in this area is higher than in most other areas. The area has a low population density, with 43% of the population residing in remote rural areas and 17% living on one of the area’s twenty-three inhabited islands. This results in just 13 people per km2, significantly lower than the Scottish average of 70 per km2. The low population density has a significant impact on the viability of heat networks. Furthermore, the substantial distance from the central belt makes it both challenging and costly to engage an installer to implement energy efficiency measures or install a zero direct emissions heating system. Argyll and Bute has a considerable coastline, with 79.7% of the population residing within 1km of it. The properties situated along this elevated coast are often very exposed to extreme weather and are often ‘hard to heat’ and ‘hard to treat’. Consequently, significant investment in the building fabric is necessary to address these issues. 8.2 Heat Network Viability The low heat density in Argyll and Bute generally makes it economically unfeasible to establish heat networks. Consequently, many building owners in the area cannot take advantage of this cost-effective measure to connect to a decarbonised heat source. 8.3 Inadequate Electricity Grid Infrastructure The electricity grid in Argyll and Bute is currently experiencing significant constraints, which impede the construction of new houses and the widespread electrification of heat in many communities within the council area. These grid limitations, coupled with the unsuitability of most of the council area for heat networks, serve as the primary barriers to realising the priorities outlined in the LHEES. 8.4 Supply Chain There is a scarcity of contractors available to carry out decarbonisation work in the local authority area. Local installers tend to limit their services to nearby locations and decline projects that involve substantial travel. Contractors from the central belt encounter extended travel times, particularly if they must rely on ferry transportation. For instance, the journey from Glasgow to Tiree takes nearly seven hours. As a result, the installers
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Page | 72 Argyll and Bute LHEES have to stay on the island in hotels and guest houses, and the resulting travel and accommodation costs are added to the costs of the decarbonisation project. 8.5 Older Buildings and Other Category 3 Buildings Argyll and Bute has 47% of its domestic buildings categorised as category 3 buildings. Category 3 buildings are not well suited for heat pumps. Consequently, the view is that "direct electric heating or biomass is likely to be the most viable decarbonisation technology." Owing to grid constraints in significant parts of the area, widespread transition to direct electric heating is not feasible. In addition, even with sufficient grid capacity, the cost of using direct electric heating, such as electric boilers and radiators, may be prohibitive for some households. Feedback from homeowners indicates that many are hesitant to transition to storage heaters, another form of direct electric heating. Hydrogen may serve as a suitable decarbonisation measure; however, the Scottish Government has stated that its policy position regarding using hydrogen as a heating fuel will not be made until 2026. Furthermore, the Scottish Government has not yet reached definitive decisions regarding whether biomass will be an approved decarbonisation measure. The Council has chosen to wait until these issues are resolved before formulating solutions for decarbonising older and Category 3 buildings. 8.6 Building Archetypes: Bespoke Properties The Strategic Housing Investment Programme (SHIP) outlines the future house building program for the local authority areas. It demonstrates that housing associations and community housing projects primarily build a small number of properties. Although there are a few large-scale projects in Oban, Dunbeg, and Helensburgh, these projects take several years to complete and consequently have different building specifications. This historical trend has resulted in diverse building types in the social housing stock. This diversity is also reflected in the private sector, where many custom-built properties exist, including farms, estate workers' housing, self-built properties, and buildings with unique extensions and conversions. This patchwork of building styles means that there are no economies of scale realised by mass retrofitting buildings with the same building archetype. As a result, the unit cost of decarbonising buildings is higher. The absence of standardised building archetypes presents a challenge for building owners in sourcing off-the-shelf decarbonisation solutions. Consequently, they are compelled to devise bespoke decarbonisation strategies tailored to the distinctive characteristics of each property. For instance, a stone farmhouse with a 1980s brick-built extension and an uninsulated cavity requires both solid and cavity wall insulation. Some of these properties
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Page | 73 Argyll and Bute LHEES have suspended floors in the newer section, while the older part of the building does not, necessitating different underfloor insulation solutions. The feedback from the LHEES Public Consultation Exercise indicated that it can be challenging to find the correct advice, and for advice agencies to reach a consensus on the approach. 8.7 Public Sector Buildings It is essential to recognise that capital budgets within local authorities have endured significant reductions. The extensive shift to low and no carbon heating will necessitate considerable capital expenditure, with substantial investment imperative from both national governments and the private sector. 8.8 Financing Decarbonisation in Argyll and Bute Argyll and Bute is characterised by a low-wage economy, featuring the lowest average wage levels in Scotland. The region exhibits a higher prevalence of low-income working households, older households, and a significant concentration of small businesses. The cost-of-living crisis has resulted in limited financial resources being available for householders and many small businesses to allocate towards decarbonising homes and buildings. The high unit costs of decarbonising buildings in areas such as Argyll and Bute, as detailed in sections 8.1-8.7, place the region at a disadvantage when it comes to implementing the decarbonisation programme, outlined in this Strategy and Delivery Plan. Consequently, financial solutions and support will be required to enable mass decarbonisation. Funders must consider areas like Argyll and Bute when allocating funding resources, as these areas have fewer opportunities to leverage funds from the private sector. 8.9 Argyll and Bute Council is a “Stock Transfer Authority” Argyll and Bute Council has transferred all its housing stock, which means that it does not have direct control over social housing. Therefore, it is essential for the Council to work collaboratively with housing associations in order to realise the LHEES priorities.
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Page | 74 Argyll and Bute LHEES 9 Opportunities Argyll and Bute is well placed to significantly contribute to Scotland and the UK’s Net Zero ambitions by utilising the area’s natural assets. This section provides an overview of the opportunities the LHEES will provide for Argyll and Bute. 9.1 Economic Opportunities by Local Energy Generation The LHEES provides a wealth of economic opportunities for Argyll and Bute, including opportunities to develop local energy generation projects which utilise: • Existing waste heat • Untapped heat e.g. from geothermal sources • Unused energy generated from renewables. Argyll and Bute contribute over one gigawatt of clean energy, constituting roughly 10% of the nation's clean energy output. The Council’s economic strategy outlines the potential for increasing this output to five gigawatts over the coming decade. However, the current grid infrastructure does not possess the capability to always accommodate this heightened level of generation. This surplus energy could be effectively harnessed locally or through alternative means, such as producing green hydrogen, charging batteries, or providing heat that can be stored to be used later in thermal batteries. 9.2 Transitioning from A Low-Wage Economy to A Higher-Wage Economy Through the Creation of Green Jobs Realising the LHEES priorities will create significant supply chain opportunities, which will require new jobs and skills, providing many opportunities for Argyll and Bute’s residents and economy. 9.3 Improving Access to Finance and Leveraging in Investment to Decarbonise the Heat Source There is a plethora of funds available to support decarbonisation efforts. Nevertheless, navigating this landscape can be confusing, making it difficult to find a fund that provides resources for a particular measure. This is especially challenging for remote and island communities, where options for decarbonisation measures are limited. As a result, building owners in these areas may not have access to the same level of funding as their counterparts in other regions.
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Page | 75 Argyll and Bute LHEES Tools that provide information and guidance to building owners for the identification and implementation of decarbonisation measures, as well as the identification of funding sources, could lead to increased adoption of such measures by building owners. Although much of Argyll and Bute is not conducive to heat networks, the LHEES has identified several potential heat networks that could present opportunities for inward investment in the area. 9.4 Utilising Technology Rising energy prices have heightened the "cost of doing business" in all economic sectors. Therefore, the LHEES presents opportunities to investigate technologies capable of reducing energy consumption or providing low and zero carbon heat in a cost-effective manner. These endeavours are expected to positively impact the overall expenses of business operations while simultaneously reducing household energy costs and increasing disposable incomes. 9.5 Community Wealth Building Argyll and Bute’s Economic Strategy states, "…there is a compelling need to strengthen the link with our natural environment and the retention of more of the wealth we generate locally within our local communities”. The Council is dedicated to continuous collaboration with partners to enhance the benefits for residents from energy generation. Implementing the LHEES provides opportunities: • for local people to access high-skilled, lucrative employment opportunities and • to develop structures and processes to distribute locally derived energy to local communities to provide them with clean and cheap energy. 9.6 Reduction in Fuel Poverty The prevalence of fuel poverty in Argyll and Bute exceeds that of Scotland as a whole. The LHEES presents opportunities for engaging with the communities most impacted and aiding them in formulating local solutions. 9.7 Utilising Planned Infrastructure Works to Reduce the Cost of Installing Decarbonisation Infrastructure Many SHIP projects require significant infrastructure work to be undertaken. The Delivery Plan will explore opportunities for collaborating with housing associations to share the costs of laying decarbonisation infrastructure. This approach will reduce costs and potentially make unviable heat networks viable. For example, a new housing development is being built in Lochgilphead in close proximity to a potentially viable heat network.
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Page | 76 Argyll and Bute LHEES Working together could maximise the number of properties that can transition to a low or zero-carbon heating system at a reduced cost. 10 Next steps Argyll and Bute’s LHEES will support the delivery of the Council’s goals of improving energy efficiency, reducing fuel poverty, and decreasing carbon emissions through low or zero-carbon heating systems. In addition, it will support the Council and its community planning partners to build on the success of existing projects while accelerating the scale and pace of decarbonisation. The strategy was devised in accordance with the LHEES methodology which required the collection and analysis of data to ensure key stakeholders made data-driven decisions. Now that a strong evidence base has been developed, the Council will involve a broader range of stakeholders in the LHEES process. One of the mechanisms for engagement will be establishing an interagency delivery group aimed at expanding the high-level actions outlined in the Delivery Plan into detailed steps. These specific actions will include targets, timelines, and indicators to measure success.
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Page | 77 Argyll and Bute LHEES 11 Glossary 11.1Abbreviations Acronym Description DNO Distribution Network Operator ECO Energy Company Obligation EES Energy Efficient Scotland EESSH Energy Efficiency Standard for Social Housing EPC Energy Performance Certificate EST Energy Saving Trust GIS Geographic Information System HA Housing Association HIB Heat in Buildings ABS Energy Efficiency Scotland: Area Based Schemes INTOG Innovation and Targeted Oil and Gas Leasing LA Local Authority LHEES Local Heat and Energy Efficiency Strategy LPG Liquefied Petroleum Gas PEAT Portfolio Energy Analysis Tool SHIP Strategic Housing Investment Programme SHNZS Social Housing Net Zero Standard SPEN Scottish Power Energy Networks SSEN Scottish and Southern Electricity Networks
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Page | 78 Argyll and Bute LHEES 9.2 Terms Terms Description Baselining Baselining is the purpose of understanding at local authority or strategic level, the status of the buildings against the Priorities, Targets and Indicators set out in the Baseline tool. Building-level Pathway As part of LHEES Stage 5, a building-level pathway is the outcome of the assessment undertaken using PEAT. It provides the likely energy efficiency retrofit technologies, as well as the low carbon heating system (where applicable) to support building level decarbonisation. Criteria Criteria are the settings applied to the Indicators for each Priority in order to support Baselining, Strategic Zoning and the identification of Delivery Areas. An example of Criteria is a simple “no” applied to the indicator of “wall insulation (Y/N)” to identify properties with uninsulated walls. Another example is the definition of an “anchor load” within the Heat Networks analysis, which applies a minimum threshold to the “heat demand” Indicator. The LHEES methodology provides a set of default Criteria that local authorities may wish to use, with flexibility to update and augment these to support local needs or for more focused analysis linked to specific actions and project identification within the Delivery Plan. Data – Alternative Alternative data can overwrite the Core data to improve accuracy (national to local level of detail, e.g. local housing data to overwrite fields in Home Analytics). Data – Core Core data is the data that is essential to complete the minimum requirements of the LHEES analysis. Core data will come from national datasets e.g. Home Analytics or the Scotland Heat Map. Data – Supplementary Supplementary data allows inclusion of additional Indicators to inform specific, local priorities & targets; also, Supplementary data can be used in GIS investigation to complement the Core analysis carried out in any assessment. An example of Supplementary data would be the inclusion of low carbon heat supply information layers within a district heating analysis. Data Zone Data zones are groups output areas which have populations of around 500 to 1,000 residents. Decarbonisation of heat Decarbonisation of heat refers to having heating sources which do not produce carbon when being used in a home or building. Delivery Area Delivery Areas (sometimes referred to as Delivery Level Areas) are a term used for all LHEES Priorities with the exception of Heat Networks. These Areas will be an important starting point for identifying a range of projects, regulation and actions that are within the competence of the Scottish Government and local authorities (projects and actions to be developed in the LHEES Delivery Plan). Delivery Areas are at a higher granularity than Strategic Zones, are generated as part of LHEES Stage
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Page | 79 Argyll and Bute LHEES 4 and are presented in the LHEES Delivery Plan. Guidance is provided for one approach to identify Delivery Areas, but there are other approaches that local authorities may wish to use. The identification of Delivery Level Areas through LHEES will be indicative only, with further investigation being required to determine the viability of progressing projects associated with the area identification activity. Detailed practitioner guidance Steps These Steps form part of the detailed practitioner guidance in LHEES Stage 4, Generation of Initial Areas to set out particularly suitable heat network zones and to support project identification. Indicator For a given Priority, the purpose of an Indicator is 1) To act as a key information field to help characterise the local authority using the Baseline tool as part of LHEES Stage 3 (authority-wide and at a strategic level); 2) To act as a key information field to support strategic zoning and generation of initial delivery areas (as part of LHEES Stage 3 and 4); 3) if suitable, to act as a key information field to measure progress against Targets over the duration of the LHEES – set out in LHEES Stage 8, LHEES Delivery Plan. For some Priorities, one Indicator may be sufficient, but for others a range may be appropriate. The LHEES methodology sets out a core set of default Indicators that local authorities may wish to use, with flexibility to update and augment these to support local needs or for more focused analysis linked to specific actions and project identification within the Delivery Plan. LHEES Delivery Plan An LHEES Delivery Plan is an action plan that enables a local authority and its partners to work towards delivery of the changes identified in the LHEES Strategy. Actions will contribute to achieving Scotland’s statutory targets on net zero greenhouse gas emissions and fuel poverty, as well as enabling the delivery of changes to buildings and local infrastructure needed to fulfil the Scottish Government’s objectives relating to heat and energy efficiency in buildings. The Delivery Plan will clarify stakeholder roles and responsibilities in delivering the Strategies; build on existing plans and policies, such as HEEPS:ABS Plans, as far as possible and coordinate across local partners and provide a mechanism for identifying new delivery actions. LHEES Priorities The LHEES Priorities are a list of technologies, building typologies and policy priorities that the LHEES Methodology uses to identify and target interventions. They include: - Heat networks - Off-gas grid buildings - On-gas grid buildings Secondary outcomes include: - Poor building energy efficiency - Poor building energy efficiency as a driver for fuel poverty - Mixed-tenure, mixed-use properties and historic buildings
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Page | 80 Argyll and Bute LHEES LHEES Stages There are 8 LHEES Stages. The purpose of the LHEES Methodology is to enable the local authority to complete LHEES Stages 1 to 6. The completion of these Stages will provide the local authority with the data analysis and evidence base to enable them to complete their LHEES Strategy and Delivery Plan documentation. There are two LHEES guidance templates included alongside this methodology– LHEES Strategy guidance and LHEES Delivery Plan guidance. The completion of these two templates will satisfy the completion of LHEES Stages 7 and 8. The 8 LHEES Stages are: 1 – Policy and strategy review 2 – Data and tools library 3 – Strategic zoning and pathways 4 – Generation of initial delivery areas 5 – Building-level pathway assessment 6 – Finalisation of delivery areas 7 – LHEES Strategy 8 – LHEES Delivery Plan LHEES Strategy An LHEES Strategy identifies what needs to be done to change buildings and relevant local infrastructure by 2045 to fulfil the Scottish Government’s objectives and local priorities relating to heat and energy efficiency in buildings. These interventions might occur at building level or in energy supply networks or in a combination of both. The Strategy will reflect national and local priorities, policies and wider strategies. Where feasible, it will consider local and national factors, such as the timing of planned infrastructure upgrades, access to resources and funding, major projects, decisions over the gas grid and community engagement. Mixed-tenure, mixed- use and historic buildings Mixed-tenure and mixed-use buildings could include a mixture of owner occupied, private rented and social housing, and also non-domestic uses, or simply multiple ownership within the same tenure. Historic buildings include the buildings that are within conservation areas or those that are listed buildings. These categories may require established alternative approaches and regulation for the installation of low carbon heat and energy efficiency solutions and where specific advice and support might be available relating to the installation of these solutions. Potential Zones The Heat Networks Priority follows a distinct methodology to the other LHEES Priorities – Stage 3 does not apply and the outputs from Stage 4 are of a different type, showing Potential Zones for Heat Networks as opposed to the identification of Delivery Areas (notionally using a 100m raster approach). The Heat Networks Priority analysis and activity carried out within LHEES is also anticipated to support activity related to formal zone designation as required by the Heat Networks Act. For these reasons, the analysis carried out in Stage 4 for Heat Networks is to identify Potential Zones rather than the otherwise used naming convention of Delivery Areas. The Potential Zones identified are to be included in the LHEES Strategy and could also inform actions around further investigation / progression within the LHEES Delivery Plan.
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Page | 81 Argyll and Bute LHEES Raster A matrix of squares, or grid, used as a method of data analysis in GIS. Each cell in the grid contains a value representing information on the cell’s contents. Strategic Level Zone Strategic Zones (sometimes referred to as Strategic Level Zones) are a term used for all LHEES Priorities with the exception of Heat Networks. Strategic Level Zones are identified in Stage 3 and are presented in the LHEES Strategy. These zones offer a visualisation of the potential pathways to decarbonise the building stock at a local authority level, split out by intermediate zone level. They are useful to understand the baseline performance, the scale of potential and initial areas of focus. Strategic Zones could be used to inform or prioritise focus areas for the more granular identification of Delivery Level Areas. The identification of Strategic Zones through LHEES will be indicative only. Targets Targets are the measurable aspect of the Priority and are likely to be taken directly from national and/or local policy documentation, for example net-zero by 2045, or EPC C by 2040. Targets are likely to comprise of end-point targets and milestone targets and would sit along a timeline within (and beyond) the LHEES. This timeline would help to prioritise the types of projects undertaken within the LHEES over its duration. Weighting For some Priorities, one Target and Indicator may be sufficient, but for others a range of Indicators may be appropriate to contextualise and characterise performance against a Target and/or progress towards a Priority. If multiple Indicators are used in strategic zoning or the identification of delivery areas, a Weighting can be applied based on the importance of each. The LHEES methodology sets out a core set of default Weightings for instances where multiple Indicators are suggested as a default setting. There is flexibility to update and augment these to support local needs or for more focused analysis linked to specific actions and project identification within the Delivery Plan.
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Page | 82 Argyll and Bute LHEES 12 Appendices 12.1 Appendix A: How this LHEES was Developed The Scottish Government’s methodology requires councils to outline the outputs achieved from each stage of the LHEES and the electronic format of that output. As well as stating how these outputs were used in the development of the LHEES. LHEES Stage Outputs Output Formats Role in informing LHEES 1 Policy and Strategy Review (.pdf/.doc) Sets priorities for LHEES Highlights relevant national and local policy and strategy drivers 2 Data and Tools Library (.xlsx) Dataset scoping and review exercise Identifying key contacts 3 Baseline Tools (Domestic and Non- Domestic) Maps (.xlsx) (.pdf) Strategic Zoning Maps Analyse buildings for suitability for heat pump retrofit Baselining tools to identify areas to target Data outputs on Strategic Zones used in the identification and mapping of initial Delivery Areas (Stage 4). 4 GIS layers on Heat Networks Summary table of clusters, resources and constraints (.mpkg) (.xlsx) Summary table used for sense-checking of initial Delivery Areas and GIS layers and for deeper exploration of maps. Both outputs are further carried forward for deliberation in stakeholder workshops (Stage 6) 5 PEAT-OR Power-BI PEAT-OR Power-BI A visual breakdown of potential costs and savings per total installation measures at property/data zone levels. The tool used to cost measures at property/ data zone level was used in stakeholder workshops to identify potential Delivery Areas 6 Ranked list of Delivery Areas Used in the structuring and writing of the Strategy Document and Delivery Plan
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Page | 83 Argyll and Bute LHEES 7 Strategy Document Story map of Strategy Document (.pdf/.doc) Strategy document setting out stages 1-6 and highlighting opportunities for achieving net zero as well as challenges StoryMap used to supplement the Strategy document. 8 Delivery Plan (.pdf/.doc) Final output highlighting priorities and actions in delivering LHEES for the next five years Standard LHEES methodology. Building category Description Indicators Category 0 Currently have a low or zero direct emissions heating system, or heat network connection • Properties with a heat pump (off-gas only) or communal heating as the main heating system Category 1 “Heat pump ready” buildings that are well-suited to heat retrofit with minimal other changes. • Cannot be a category 0 property • Not a listed building or in a conservation area • Properties with insulated walls and double or triple glazed windows • If the property has a loft, it must have at least 100mm of loft insulation • Properties which are likely to have a wet heating system (i.e. mains gas, LPG, Oil or Biomass/solid fuels) Category 2 Secondary potential for heat pump retrofit. Require some fabric and/or distribution systems upgrades. • Cannot be a category 0 or 1 property • Properties that are cavity construction14 (either insulated or uninsulated), or any other construction type, with insulated walls • No risk of the property having a narrow uninsulated cavity • Properties can be listed or in a conservation area 14
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Page | 84 Argyll and Bute LHEES Category 3 Significant upgrades required to be heat pump ready. Off-Gas Categorisation Process The subcategory indicates the most viable decarbonisation technology. Heat pumps are the priority solution. The suitability of storage or direct electric heating, and biomass are indicated by the characteristics listed below: Category 3 – Heat pump • If the property is currently heated via an oil or LPG system Category 3 – Electricity (storage or direct) • Properties already using electricity as the main fuel type • Flats • Properties with double or triple glazed windows • Properties in urban areas (1, 2 or 3 in the 8-fold classification15) Category 3 – Biomass • Properties already using biomass as the main fuel type • Detached and semi-detached properties • Properties of a solid brick or stone construction type On-Gas Categorisation Process As per the off-gas categorisation process but there are no subcategories for electric and biomass options. 15 Scottish Government Urban Rural Classification 2020
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Page | 85 Argyll and Bute LHEES Deviation from the standard LHEES methodology. LHEES Consideration Standard LHEES methodology Deviation from standard LHEES method Off-Gas Grid Buildings Categories 0, 1, 2 and 3 properties determined according to the following factors: • Unlisted property • Not in a conservation area • Wall insulation • Double/triple glazed windows • Wet system replacement (except electric and no heating/hot water systems) • Loft insulation prediction (99mm +) Only wall insulation is considered in determining Category 1 properties for all heating types (boilers, room heaters, storage heaters, no heating/hot water systems). Additionally identified solar PV suitability for category 1 properties. On-Gas Grid Buildings Categories 0, 1, 2 and 3 properties determined according to the following factors: • Unlisted property • Not in a conservation area • Wall insulation • Double/triple glazed windows • Wet system replacement (except electric and no heating/hot water systems) • Loft insulation prediction (99mm +) Only wall insulation is considered in determining Category 1 properties for all heating types (boilers, room heaters, storage heaters, no heating/hot water systems). Additionally identified solar PV suitability for category 1 properties. Poor Building Energy Efficiency Energy efficiency score is determined by wall insulation status, loft insulation status and double glazing. As most programmes and projects are wall insulation focused, the weighted Energy Efficiency map only includes wall insulation potential, not glazing and loft. Poor Building Energy Efficiency and Fuel Poverty Energy efficiency and Fuel Poverty score is determined by wall insulation status, loft insulation status and double glazing and Fuel Poverty. As most programmes and projects are wall insulation focused, the weighted Energy Efficiency and Fuel Poverty map only includes wall insulation potential, not glazing and loft.
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Page | 86 Argyll and Bute LHEES 12.2 Appendix B- Stakeholder Engagement Summary of Engagement with Internal Stakeholders Department Stakeholder(s) Engagement Challenges Housing Strategy Housing Strategy Team Considered the viability of using new build housing projects outlined in the Strategic Housing Investment Plan (SHIP), to lay infrastructure for heat networks and enable the retrofit of existing housing stock Communication with housing associations to establish HOMEArgyll Partnership to deliver EESSH2/SHNZS The Council does not directly control social housing which limits influence Transition to SHNZS from EESSH2 brings focus to fabric-first Grid capacity prevents upgrades Housing stock on the coast is often difficult to heat and treat Housing -ABS Home Energy Team Experienced in implementing energy efficiency programmes across Argyll and Bute Administer the ABS schemes Co-ordinate the interagency Energy Efficiency Forum Large proportion of buildings with solid walls makes insulating expensive Large proportion of properties hard to heat and hard to treat Supply chain issues combined with the geography of the local area make any retrofitting project timely and costly The Council’s low-wage economy makes it difficult for residents to afford to transition to a zero direct emission heating system Planning Local Development Plan team Write policies on heat networks and retrofitting in conservation areas. Delivering NPF4 as it has an important role to play in facilitating the rollout of low carbon heat. Limitations on retrofitting housing stock in conservation areas Property and Estates Property Services Team Expertise in non-domestic property management. Responsible for implementing the Council’s Decarbonisation Plan and managing non-domestic heat network/district heating schemes for non-domestic council assets. Public-owned non-domestic building stock only makes up a small percentage of the areas total heat demand annually.
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Page | 87 Argyll and Bute LHEES Climate Change Officer The Climate Change Officer is secretariat to the Climate Change Board and is leading on the net zero route map. The Climate Change Officers remit is limited to Council assets. This post is also currently vacant. Business Development Rural Growth Team Vital in progressing Argyll and Bute’s Rural Growth Deal which aims to implement a project to achieve a low carbon economy in Islay The Scottish and UK government did not agree to the business case developed for a low carbon energy system on Islay.
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Page | 88 Argyll and Bute LHEES Summary of Engagement with External Stakeholders Category Stakeholder and Interest Engagement Activity Challenges Housing Providers Argyll Community Housing Association Priority interest: Desire to improve energy efficiency measures in their housing stock and implementing heat network zones. • LHEES Stakeholder Workshops • HOMEArgyll Partnership • A&B Energy Efficiency Forum • ACHA Warmer Homes Project • A&B Strategic Housing Forum • A&B SHIP Group Large proportion of stock in conservation areas or listed buildings. Low density of heat in Argyll and Bute makes suitability difficult for Heat Network Zones. High proportion of stock near coastlines puts them more at risk from exposed weather, making them hard to heat and treat. Supply chain issues make installing energy efficiency measures challenging and expensive Fyne Homes Priority interest: Heat Network Zones, having already developed three heat networks in the area. • LHEES Stakeholder Workshop • HOMEArgyll Partnership • A&B Energy Efficiency Forum • A&B Strategic Housing Forum • A&B SHIP Group Dunbritton Housing Association Priority interest: Improving the energy efficiency measures in their housing stock Link Housing Priority interest: Desire to develop a heat network in Oban West Highlands Housing Association Priority interest: improving the energy efficiency measures
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Page | 89 Argyll and Bute LHEES in their housing stock Organisations with energy remit Community Planning Partnership • LHEES Stakeholder workshop • Climate Change Board The CPP has only recently appointed a Climate Change Action Project Manager so the process to develop a Regional Climate Action Plan has only just commenced. Local Energy Scotland • LHEES Stakeholder workshop LES supports communities to generate their own energy and develop heat networks. Project development is often halted by funding or community organisations capacity to take projects forward. Distribution System Operators Scottish & Southern Electricity Networks Priority interest: ensuring grid maintains capacity and is not overburdened in specific areas • LHEES Officer participates in a wide range of SSEN Stakeholder events, stakeholder surveys and stakeholder returns. • One to one meetings with various teams and most recently the Whole System Team to ensure they are aware of the issues with implementing LHEES priorities and discussing potential solutions. • Working with SSEN to share data and project priorities using the Lenza tool. Current grid constraints across Argyll and Bute prevent large-scale retrofitting for electric heating in several areas. Argyll and Bute Council are unusual, with two DSO covering the council’s boundaries. This means more engagement and liaison. What is most challenging is both DSOs have different data sharing platforms, which requires the council to collect and provide data differently. Scottish Power Energy Networks Priority interest: ensuring grid maintains capacity and is not overburdened in specific areas • LHEES Officer participates in a wide range of SPEN Stakeholder events, stakeholder surveys, and stakeholder returns. • Currently, in discussions with SPEN regarding data sharing mechanisms
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Page | 90 Argyll and Bute LHEES Argyll and Bute Energy Efficiency Forum Members • Islay Energy Saving Trust • Argyll and Bute Citizens Advice Bureau • ALIenergy • Home Energy Scotland • Local Energy Scotland • Argyll and Bute Council (Energy Efficiency Team and the LHEES Officer) • Dunbritton Housing Association • West Highland Housing Association • ACHA • Fyne Homes Climate Change Board The Board comprises of : • representatives from relevant council services • an Elected Member (Policy Lead for Climate Change) • a representative from the Community Planning Partnership • a representative from ACTNow (a third sector organisation) Public Consultation The Council conducted an online consultation process. The consultation was promoted through various communication channels, including social media and direct email. A consultation findings report will be published on the LHEES page of the Council's website.
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Page | 91 Argyll and Bute LHEES 12.3 Appendix C -Additional National Policy Drivers Policy/strategy Description Targets/aims Heat in Buildings Supply Chain Delivery Plan This plan sets out how the supply chain needs to grow and develop to meet the future of heating and energy efficiency regulations. Accelerate efforts to build on energy efficiency and reduce the Council’s demand for energy. Rapidly scale up deployment of zero emissions heating systems, such as heat pumps and heat networks. Tackling fuel poverty in Scotland: a strategic approach Sets out the policies and proposals for national government, local authorities, and third sector partners to help meet the targets set in the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019. Heat Networks Delivery Plan Sets out how provisions of the Heat Networks (Scotland) Act 2021 will contribute to increasing heat networks in Scotland. The plan to facilitate reaching the targets set out in the Heat Networks (Scotland) Act 2021. Draft Energy Strategy and Just Transition Plan The draft sets out key ambitions for Scotland’s energy future. Targets include: the production of more than 20 Gigawatts additional renewable electricity on- and offshore by 2030, accelerate the decarbonisation of domestic industry, transport and heat and to increase contributions from solar, hydro, and marine energy. New Build Heat Standard 2024 (NBHS) This legislation changes building regulations to promote the uptake of zero direct emissions heating systems, such as heat pumps and heat networks. New buildings applying for a building warrant from 1 April 2024 will be prohibited from using direct emissions heating to help reach the targets set in The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019. Review of Electricity Market Arrangements (REMA) (UK Government) Proposed reforms to the electricity market to improve security of supply and cut prices for consumers. Tenements (Scotland) Act 2004 The Tenement Management Scheme (outlined in Schedule 1 of the Act) explains how to come to arrangements about maintenance and how costs are shared between owners. The Planning (Listed Building Consent and Conservation Area Consent Procedure) (Scotland) Regulations 2015 This legislation provides the framework for applying for listed building consent and conservation area consent on or after 1st October 2015.
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Page | 92 Argyll and Bute LHEES Public Sector Leadership on the Global Climate Emergency: Guidance (2021) This guidance provides advice for public bodies on leadership; robust, consistent and comprehensive carbon management; interpretations of the strengthened legislation; and resources available to support public bodies. Provides advice to public bodies to assist with achieving the targets set in the climate change plan 2018–2032 update. NHS Scotland climate emergency and sustainability strategy: 2022-2026 Sets out plans for NHS Scotland to reduce its greenhouse gas emissions and impact on the environment, adapt to climate change and to better contribute to the United Nation’s sustainable development goals. NHS Scotland is aiming to become a net-zero health service by 2040 at the latest. Police Scotland – Environmental Strategy 2021 The Environmental Strategy sets out Police Scotland’s commitment to environmental sustainability and represents an organisational response to the climate crisis. Reduce carbon emissions by 35% over the next 5 years. Includes ambitions to improve energy efficiency of buildings. Historic Environment Policy for Scotland HEPS is a non-statutory policy statement that should be taken into account whenever a decision will affect the historic environment. Promote a way of understanding the value of the historic environment while encouraging consistent, integrated management and decision-making to support a positive outcome for Scotland’s historic assets.
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Page | 93 Argyll and Bute LHEES 12.4 Appendix D: Datasets Used in the Development of the LHEES Data Resource/Tool Description Data Format Weblink Scotland Heat Map (SHM) (Summer 2020) Valuable spatial dataset with point-level heat demand data for all properties in Scotland / various other useful data fields and additional information layers. Updated approximately annually. Source data (including from public sector) requested at each update. Spatial geodatabase https://www.gov.sc ot/publications/scot land-heat-map- documents/ Home Analytics v 3.9 (May 2024) Database covering all domestic properties in Scotland, built using information from the domestic EPC register and other sources; statistical models are used to provide estimates giving 100% property coverage Excel spreadsheet https://energysavin gtrust.org.uk/servic e/home-analytics/ Non-Domestic Analytics (version 1.1) Database covering all non-domestic properties in Scotland, built using information from the non-domestic EPC register and various other sources, with extensive modelling to provide estimates giving 100% property coverage Excel spreadsheet Portfolio Energy Analysis Tool (PEAT)[VS1] Tool to accompany Home Analytics; can be used to investigate and cost intervention options for a portfolio of up to 500 properties; can be driven by a price cap or a target EPC score Tool hosted online; input / output as Excel spreadsheet https://homeanalyti cspeat.est.org.uk/ One Scotland Gazetteer (OSG) - Address Gazetteer (AG) Central database for all addresses within an authority GIS API or csv file Local Development Plan sites Information, ideally in spatial format, on development sites in the LDP and LDP2. To include detail on development type and expected build-out where available. GIS shapefiles Waste sites capacity tool (SEPA) SEPA waste heat data Online interactive map viewer/ Excel spreadsheet https://www.sepa.o rg.uk/data- visualisation/waste -sites-and- capacity-tool/
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Page | 94 Argyll and Bute LHEES Green Heat in Greenspaces (GHiGs) GHiGs investigated the suitability of many types of urban open space across Scotland for use as low carbon heat sources, heat storage sites and heat transmission corridors. Excel spreadsheet https://www.greens pacescotland.org.u k/introducing- ghigs#:~:text=Gree n%20Heat%20in% 20Greenspaces%2 0(GHiGs)%20is%2 0a%20project%20 within%20the,Scott ish%20low%20car bon%20heat%20tr ansition Geographic boundary datasets Information, ideally in spatial format, on Council-owned assets. GIS shapefiles https://borders.ukd ataservice.ac.uk/bd s.html
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Page | 95 Argyll and Bute LHEES 12.5 Appendix E: Datasets and Limitations of the LHEES approach Home Analytics Home Analytics Scotland provides essential data on the Scottish housing stock. This data is provided down to the address level and is available to the Scottish Government and local authorities to assist them in developing, targeting and delivering policies, schemes and programmes designed to improve energy efficiency, install renewable technologies and alleviate fuel poverty. The core datasets that make up Home Analytics Scotland are: • Energy Performance Certificate data • Home Energy Efficiency Database (HEED) data • Energy Saving Trust Home Energy Check (HEC) data • Ordnance Survey AddressBase, MasterMap Topography layer and StreetMap data • Scotland Gas Networks data • Scottish Census data • Scottish Index of Multiple Deprivation (SIMD) data While there is full coverage of the Council’s property stock, the data is not entirely accurate given that not all properties are surveyed; where gaps exist property information will have been estimated based on neighboring characteristics using statistical modelling. Fuel poverty figures in the dataset only act as an indication. To date, there has not been a comprehensive dataset detailing fuel poverty given the resources required to do so and the risk of identifying individuals and communities through the use of sensitive information such as income data. The fuel poverty data is therefore probability driven and users should not treat figures as an absolute number or percentage but rather a likelihood of fuel poverty. An instance where fuel poverty data lacks confidence and leads to a poor representation of the geographical area is in households in affluent areas who may be labelled as in fuel poverty because they live in stone buildings with poor heating capture. Currently, fuel poverty data is calculated by the following: • Probability of wall being uninsulated • Loft Insulation Prediction • Loft Insulation: 0-99mm. • Loft Insulation: 100-249mm. • Loft Insulation: >250mm. • No loft • Excess Cold Category 1 Hazard • Probability of Fuel Poverty (Fuel Bill >10% of Income)
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Page | 96 Argyll and Bute LHEES Non-domestic Analytics Non-domestic Analytics is a new data set developed by Energy Saving Trust on behalf of Scottish Government, to provide more property-level details about the non-domestic building stock in Scotland. The dataset brings together property details from a variety of data sources such as the Scottish EPC Register, Ordnance Survey, Scottish Assessors and BEIS, to establish property attributes and energy profiles for each non-domestic building. Like Home Analytics, gaps in these records are imputed using a series of statistical models. The final database is therefore a combination of known and modelled records. There are limitations on the confidence of using Non-Domestic Analytics due to the lack of robust information from the non-domestic sector compared to the domestic sector with much of the data relying on significant modelling. Therefore, users should not take figures as an absolute number or percentage but rather an estimation. Due to the reliance on probability, analysis was limited to exploring groupings of building typologies. The dataset relies on the use of an external categorisation of property typology (Ordnance Survey) resulting in a deviation in standard interpretation of property classes. For example, a church can be classified as either a commercial or place of worship depending on its main function, while residential (non-domestic) buildings can also indicate short-term lets and sheltered accommodation. Scotland Heat Map (2020) Containing both domestic and non-domestic heat demand data, the Scotland Heat Map is a crucial resource to identify the opportunities for efficient heat supply projects and support their development. Developed with data provided by public and private sector organisations including all local authorities, it will help to identify opportunities for new and expanding heat projects including efficient supply projects, such as district heating. The dataset also contains various additional layers such as Geology and hydrogeology, waste energy supply points, and existing heat networks. As the dataset was captured in the summer of 2020, demand data exists only as a snapshot in time. Since network viability is based around the demand of individual buildings, the difference between modelled and expected demand may affect that viability. PEAT-OR tool The PEAT-OR tool, developed by EST, accompanies Home Analytics. It is used to investigate cost intervention options for a portfolio of up to 500 properties. The tool has a relatively high degree of flexibility to be tailored to reveal target areas and properties by price cap or a target EPC score. However, there are the following limitations: • Individual measures cannot be isolated or removed; the tool will show all possible interventions. This means some impractical measures are proposed such as installing wind turbines. • Costs and Carbon savings are calculated for all possible measures, this means it is not possible to investigate the impact of individual measures.
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Page | 97 Argyll and Bute LHEES • Fuel cost data used within PEAT-OR was released at the start of July 2023, with fuel costs modifying frequently these costs are not totally accurate. These limitations will affect the outputs from Stage 5, which should be understood as estimates only. Ordnance Survey Various mapping data, central to the development and use of Scotland's Heat Map and other GIS information sources. OS product data and licenses are required to use SHM & other OS-derived datasets. Key to GIS analysis elements of LHEES. One Scotland Gazetteer Central database for all addresses within an authority. Key to GIS elements of LHEES for identifying multi-tenure non-domestic properties.
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Page | 98 Argyll and Bute LHEES 12.6 Appendix F: LHEES Stage Descriptions Stage 1: Policy and Strategy Review A policy review was carried out to highlight national, regional and local policies that are linked to, impact, or could be impacted by LHEES. Results from this review, along with initial stakeholder mapping were logged in the policy review template for reference during subsequent stages of the LHEES. Stage 2: Data and Tools Library This stage involves identifying and maintaining a record of the data and tools used to support analysis in the subsequent stages of the LHEES process. The record captures data sources, ownership rights, requirements for the LHEES Considerations and data format. Stage 3: Strategic Zoning and Pathways The purpose of LHEES Stage 3 is to support local authorities to understand the current energy efficiency and heat decarbonisation performance of the building stock at a local authority wide level. It also supports further analysis to set out Strategic Zones and pathways for each LHEES Consideration, as far as reasonably possible, at data zone level, a commonly used standard for statistical reporting of socio-economic data. These Strategic Zones identify potential solutions for inclusion in the LHEES Strategy (Stage 7). The analysis sets out the strategic starting point for the generation and prioritisation of Delivery Areas (Stage 4), as well as further engagement and actions for the Delivery Plan (Stage 8). LHEES Stage 3 is supported by both the ‘Domestic Baseline Tool’ and the ‘Non-domestic Baseline Tool’. The Domestic Baseline Tool was developed by Zero Waste Scotland for analysis of the domestic sector drawing on Home Analytics as the core source data to support this. The tool was used to generate a performance baseline of buildings and to set out Strategic Zones with respect to the LHEES Considerations. The ‘Non-domestic Baseline Tool’ was developed following the release of Non-Domestic Analytics, as a means to support better understanding of the breakdown of non-domestic building typologies and by other criteria, such as age, heating system type or floor area category. Given the limitations of the non-domestic dataset, the outputs are focused on providing property count and / or total heat demand information for these groupings, rather than suggesting suitability for specific interventions. When assessing heat decarbonisation options in the tools, heat pump installation is one of the suggestions. According to the LHEES methodology, the level of heat pump ‘readiness’ in domestic properties are sorted into four categories: Building category Description Category 0 Currently have a low or zero direct emissions heating system, or heat network connection Category 1 “Heat pump ready” buildings that are well-suited to heat retrofit with minimal other changes. Category 2 Secondary potential for heat pump retrofit. Require some fabric and/or distribution systems upgrades. Category 3 Significant upgrades required to be heat pump ready.
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Page | 99 Argyll and Bute LHEES In the standard Zero Waste Scotland methodology, Category 1 properties are assessed based on a range of indicators including wall insulation, glazing status, wet heating system and loft insulation prediction. For Argyll and Bute’s LHEES, only wall insulation was accounted for in Stage 3 given that this was the most relevant factor to the local domestic property stock. Stage 4: Generation of Initial Delivery Areas. Stage 4 is informed by the LHEES Strategy and analysis from Stages 1-3. The purpose of Stage 4 is to support the Council’s decision making by generating initial Delivery Areas for each of the LHEES Considerations. This Stage uses GIS to generate initial Delivery Areas at a higher granularity than LHEES Stage 3, to enable the Council to understand specific locations of potential Delivery Areas within a Strategic Zone or across the whole local authority. The level of granularity is advised at 250m2 to reflect an appropriately sized delivery area without the risk of identifying individual properties. This analysis is the starting point for more detailed engagement, building level assessment of interventions and cross-checking against the policy and strategy review (stage 1) to enable finalisation of the Delivery Areas (LHEES Stage 6). These Delivery Areas should then support actions in the Delivery Plan (Stage 8) that are within the competence of the Scottish Government, local authorities and wider partners. Stage 5: Building-Level Pathway Assessment The purpose of LHEES Stage 5 is to support with delivery area identification of Stages 4 and 6 to establish in more detail the type of intervention(s) required to decarbonise the building from a heating and energy efficiency perspective. This stage provides an understanding of the costs and the energy and carbon savings associated with interventions. Stage 5 enabled South Lanarkshire Council to select and analyse domestic buildings for assessment in the Energy Saving Trust’s PEAT-OR, for the domestic sector only. PEAT-OR enables the local authority to evaluate energy efficiency and heat decarbonisation retrofit options in terms of costs and carbon emissions reduction. Results can be presented at the building level or at a zone level. The buildings to be evaluated can be selected and taken from the analysis in LHEES Stage 3 or Stage 4. It is recognised that PEAT-OR has not been designed specifically to support LHEES. Therefore, in this LHEES, a PowerBI report has been developed to enable the Council to explore potential decarbonisation results in an interactive and customised manner to assess viability and decision making of delivery areas. Stage 6: Finalisation of Delivery Areas During this stage, Strategic Zones, initial Delivery Areas and any building-level assessment were considered alongside the detail included as part of the policy and strategy review and all stakeholder engagement undertaken. At the time of writing, Argyll and Bute Council had not committed to detailing top delivery areas. Rather, the outcomes from this stage are documented in the stage 8 Delivery Plan, where the delivery areas will be set out.
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Page | 100 Argyll and Bute LHEES 12.7 Appendix G: Detailed Methodology for the Identification of Potential Heat Network Zones Analysis was undertaken to identify the areas where heat networks present a decarbonisation pathway that could be of strategic importance for South Lanarkshire. Heat Data Point non- domestic properties were filtered to only include semi-public and public buildings. These were refined using OS AddressBase classification codes identified as semi-public or public by the Green Heat in Greenspaces project. Additionally, a sense check of building names was carried out to identify Council-owned buildings. If that was the case, the buildings were added to analysis. This approach was chosen so that only non-domestic buildings that the Council has full or partial control over are treated as potential anchor loads in the heat network zoning. When defining anchor loads, public and Council-owned buildings have been prioritised as the Council has greater control over the operation of these buildings. Heat network zones have been identified based on a 4,000 kWh/yr/m linear heat density (a means of relating annual heat demand to a distance). Areas of greatest potential for heat network development have been further identified based on a solely heat demand perspective where at least two anchor loads were required > 500MWh/yr. Further analysis through feasibility studies and constraints analysis were required to understand the viability of heat network development in each identified area. Existing heat networks have been added to potential heat network zones to identify viability of heat network expansion. For the purpose of LHEES, a 500m radius buffer has been drawn around the existing heat network points to provide a sensible estimate of the area within which heat demand can serve. The methodology for identification of heat networks has been summarised in Figure 19. For a comprehensive methodology, please see the Heat Network Zoning methodology in the LHEES documentation.
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Page | 101 Argyll and Bute LHEES 12.8 Appendix H: Heat Network Opportunities from Argyll and Bute’s Pilot Study
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Page | 102 Argyll and Bute LHEES 12.9 Appendix I: Shared Ground Loop Methodology 2.1. 2.2.