Non-Domestic Energy Efficiency Framework (Ndeef) Progress Update
Argyll and Bute Council · 11 May 2023
Back to Policy and Resources Committee — 11 May 2023 and its agenda
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMITTEE CLIMATE CHANGE BOARD 11th May 2023 Non-Domestic Energy Efficiency Framework (NDEEF) Progress Update 1.0 EXECUTIVE SUMMARY 1.1 This report provides a brief progress summary of Argyll and Bute Council’s Scottish Government Non-Domestic Energy Efficiency Framework project (NDEEF1) which is delivering a range of energy efficiency projects at 12no. Council properties. The delivery of these projects has been instrumental in reducing energy costs and has made a significant contribution to the Council meeting Climate Change Carbon Reduction targets. 1.2 The project gained approval in March 2021 and utilized provisions made in the overall Council Budget in previous years for investment in energy efficiency and climate change of up to £1.1m. Further capital block allocations totaling £0.27m for previously identified asset sustainability projects were added into the NDEEF project giving an overall project budget of £1.37m. 1.3 The new award of £640,000 which was approved as part of the Council Budget in February 2023 combined with the £500,000 announced in February 2022 will facilitate a continuation of this programme and deliver further energy efficiency for our estate. This report also outlines the scope of some of the projects likely to progress and be supported by this additional capital funding that will be further developed into detailed business cases. 1.4 To date the NDEEF project has delivered 47no. out of the 50no. individual energy efficiency mini projects identified at the start of the project in 2021. Savings of £111,831 per annum with annual carbon savings of 357 Tonnes have been delivered to date. 1.5 On completion the project will deliver total savings of £134,630 per annum with annual carbon savings of 421 Tonnes. 2.0 RECOMMENDATIONS 2.1 That the Policy & Resources Committee:-: 2.1.1 Note the progress made to date on the NDEEF project completing 47no. out of 50no projects so far: and 2.1.2 Note and consider the climate change projects outlined at Section 4 that
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will be developed in 2023 onwards and will form NDEEF Project 2 that will commit a further £1.5m into projects relating to energy efficiency, reducing reliance on fossil fuels and increasing efficiency. 3.0 DETAIL 3.1 Background – Scotland is transitioning to a net-zero emissions outcome for the benefit of our environment, our people, and our prosperity. Scotland’s climate change legislation sets a target date for net-zero emissions of all greenhouse gases by 2045. The Scottish Government is currently updating its Climate Change Plan to reflect the increased ambition of the new targets set in the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019. The Council’s Climate Change Board and Climate Change Environmental Action Group also seek to reduce greenhouse gas emissions by the Council both directly and indirectly. 3.2 Carbon emissions associated with the Council’s estate and buildings accounts for over 20% of the Council’s overall carbon footprint. These emissions arise from use of electricity, gas, heating oil and water in premises. Whilst a number of energy efficiency projects like insulation and switching to LED lighting or generating renewables have already been achieved more can be done. Switching to more efficient technologies will not only benefit both energy consumption and energy cost but will also improve ‘green credentials’. 3.3 Approximately £1.37m of viable project work was identified across 12no. assorted premises and a tender exercise was carried out utilizing the Scottish Government’s ‘Non-Domestic Energy Efficiency Framework (NDEEF)’. Framework providers were required to offer a level of energy performance guarantees. This robust energy performance contracting approach provided the opportunity to reduce carbon emissions, achieve substantial guaranteed energy savings, and cut costs through energy efficiency and energy generation measures. 3.4 The NDEEF was developed by the Scottish Government to provide a route to market for the effective delivery of retrofit energy efficiency works to existing non-domestic public buildings. 3.5 The framework has been developed over the past seven years by the Scottish Futures Trust (SFT), a public funded infrastructure delivery body, combined with assistance from the international engineering consultants Mott MacDonald. Further information is provided at: https://www.scottishfuturestrust.org.uk/page/energy-efficiency 3.6 The framework is managed by Scottish Procurement, who are part of the Scottish Government, and has been developed to help public sector bodies progress their energy efficiency projects within their estates in order to achieve the legislated 2045 emission targets. The framework provides a list of eleven pre−selected
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contractors that the public sector can call−off to retrofit energy efficiency works. Further information is provided at: https://www.gov.scot/publications/non-domestic-energy-efficiency-procurement- framework-buyers-guide/ 3.7 NDEEF1 Approach – A Commodity Sourcing Strategy for Energy Efficient Solutions was conducted and approved the use of the NDEEF as the preferred delivery mechanism. Subsequently, Procurement and Energy and Building Services Team staff engaged with Mott MacDonald to prepare an Invitation to Mini Competition (ITMC) for the delivery of various energy efficiency works at 12no. Council properties. 3.8 The Council conducted a mini competition amongst the Contractors who were party to the Framework Agreement. 3.9 Following this competitive tendering process, Asset+ Energy Performance Ltd were appointed as the Energy Services Company (ESCo) to deliver the full programme of works. Investment Grade Energy Audits were carried out across all 12no. buildings, detailed surveys were carried out, firm quotations received, energy calculations undertaken and stakeholders engaged with. This ensured that the figures contained within the final Investment Grade Proposal were fixed and guaranteed through the life of the payback by Asset+. Any shortfall between the agreed level of energy consumption savings and those achieved as determined through an internationally agreed approach to Measurement and Verification (M&V), conducted by an independent M&V Specialist, is deducted from payment otherwise due to be made to Asset+. 3.10 NDEEF1 Financials – The use of the framework on this occasion was targeted at 12no. Council buildings and when fully complete will deliver 50no. energy efficiency mini projects totaling a value of £1.37m which will deliver annual energy savings of £134,630 and annual carbon savings of 421 Tonnes. 3.11 NDEEF1 Detail - The properties which are ultimately being delivered in the NDEEF1 project, the Energy Conservation Measure (ECM), the cost of works, the savings and the completion dates comprise;
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Capital ECM £ kWh CO2 £ LED Lighting Upgrade Manse Brae Roads Office 19,322 37,150 10.30 3,269 Dec-21 Kilmory Castle & Estate 81,351 87,294 24.21 11,348 Jan-22 Lochgilphead CEC 10,276 12,921 3.58 1,137 Dec-21 Riverside Leisure Centre 8,824 7,804 2.16 1,014 Jan-22 Rothesay Leisure Pool 6,799 8,313 2.31 1,081 Sep-21 Graham Williamson IT Centre 9,161 10,513 2.92 925 Sep-21 Lochgilphead Resource Centre 10,284 10,305 2.86 907 Nov-21 Arrochar Primary School 17,648 20,890 5.79 1,838 Sep-21 Cardross Primary School 27,881 29,151 8.08 4,198 Aug-22 Kintyre House 29,767 30,780 8.54 4,001 Sep-21 Solar PV Kilmory Castle & Estate 81,246 38,329 10.63 5,519 Due April/May 23 Cardross Primary School 109,337 64,603 17.91 11,279 Due April 23 Blackhill Roads Depot 36,529 19,176 5.32 2,493 Jan-23 Rothesay Leisure Pool 51,023 34,620 9.60 4,501 May-22 Graham Williamson IT Centre 51,023 18,608 5.16 1,638 Oct-22 Lochgilphead Resource Centre 21,685 8,859 2.46 780 May-22 Kintyre House 31,889 20,470 5.68 2,661 Apr-22 BMS Optimisation Manse Brae Roads Office 1,870 18,706 4.82 1,033 Jul-22 Kilmory Castle & Estate 12,710 98,954 24.83 6,089 Jul-22 Lochgilphead CEC 1,870 12,843 3.31 721 Jul-22 Rothesay Leisure Pool 5,617 67,922 12.95 1,891 Jul-22 Strachur Primary School 2,125 6,863 1.77 380 Jul-22 The Moat CEC 1,870 12,843 3.31 721 Jul-22 Cardross Primary School 25,461 52,486 3.31 721 Jul-22 Lochgilphead Resource Centre 1,870 17,316 4.45 936 Jul-22 Kintyre House 6,820 12,628 3.50 1,642 Jul-22 Covert Oil Boiler to ASHP Cardross Primary School (Gas) 146,000 130,000 35.00 6,000 Due Jun/July 23 Manse Brae Roads Office 70,145 115,145 29.57 4,975 Final Comissioning Due Mar 2023 Lochgilphead CEC 67,928 107,588 27.63 4,648 Final Comissioning Due Mar 2023 Strachur Primary School 48,523 70,069 17.99 3,027 Final Comissioning Due Mar 2023 Lochgilphead Resource Centre 51,023 81,877 21.03 3,317 Final Comissioning Due Mar 2023 Arrochar Primary School 72,373 65,453 16.81 2,788 Final Comissioning Due Mar 2023 Boiler Optimiser Rothesay Leisure Pool 3,189 68,677 12.63 1,360 Oct-22 Fridge Optimiser Kilmory Castle & Estate 1,818 3,805 1.06 495 Oct-22 Strachur Primary School 620 1,183 0.33 104 Oct-22 Lochgilphead Resource Centre 950 1,809 0.50 159 Oct-22 Arrochar Primary School 621 1,183 0.33 104 Oct-22 Server Room Cooling Upgrade Kilmory Castle & Estate 92,959 114,581 31.77 16,500 Dec-22 Graham Williamson IT Centre 7,564 20,148 5.59 2,619 Mar-22 Pool Pump Control Riverside Leisure Centre 9,567 41,800 11.59 5,434 Mar-22 Rothesay Leisure Pool 9,567 28,500 7.90 3,705 Mar-22 Coolnomix A/C Optimisation Kilmory Castle & Estate 5,687 16,650 4.62 2,165 Jan-23 Riverside Leisure Centre 2,843 3,303 0.92 429 Jan-23 Rothesay Leisure Pool 2,843 3,303 0.92 429 Jan-23 Kintyre House 11,480 9,909 2.75 1,288 Jan-23 Self-learning eTRV Manse Brae Roads Office 1,276 2,285 0.63 201 Feb-22 Valve Wrap Kilmory Castle & Estate 15,446 34,938 0.55 1,781 Oct-22 Lochgilphead CEC 4,001 2,562 0.71 225 Oct-22 Strachur Primary School 638 556 0.15 49 Oct-22 Lochgilphead Resource Centre 638 1,165 0.32 103 Oct-22 TOTALS:- 1,291,958 1,686,836 421 134,630 Date Completed Savings
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3.12 The properties were selected on the basis of perceived opportunities for energy efficiency savings and because previously identified capital works to replace the existing oil fired heating systems were required to be delivered at some of these locations. 3.13 Site pictures are included below to highlight some of the energy efficiency projects carried out; 1. Kintyre House LED Lighting Conversion 2. Strachur Primary School Air Source Heat Pump Install Air Source Heat Pumps
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3. Lochgilphead Learning Resource Centre Solar PV Install 4. Kilmory Castle Server Room Cooling Upgrade 4.0 NEXT STAGE – NDEEF2 It is proposed that the NDEEF framework is further utilized in 2023 to enhance our position by undertaking another project of similar size and scale. Data gathering and feasibility works are underway to fully define the site list and scope the potential energy efficiency opportunities. Currently 16no. unfunded projects are at initial case selection. Projects will be developed and investment business cases taken to point of commitment in 2023/24. Due to most sites being on Education estate most will await school holidays for actual installation to deliver. Contracts would be signed / committed in 2023/24 year. A list of projects currently under consideration for Business Case are:-
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SITE CLIMATE CHANGE / ENERGY EFFICIENT TECHNOLOGY Carradale Primary School LED Lighting, Solar PV, BMS Optimisation, Heating Optimisation Hermitage Academy LED Lighting, BMS Optimisation, Heating Optimisation Lochgilphead Joint Campus LED Lighting, BMS Optimisation, Heating Optimisation Oban High School LED Lighting, Solar PV, BMS Optimisation, Heating Optimisation Dunoon Grammar School LED Lighting, BMS Optimisation, Heating Optimisation Rothesay Joint Campus LED Lighting, BMS Optimisation, Heating Optimisation Lismore Primary School LED Lighting, ASHP, BMS Optimisation Kirn Primary School LED Lighting, Solar PV, BMS Optimisation, Heating Optimisation Oban Joint Primary Campus LED Lighting, BMS Optimisation, Heating Optimisation Campbeltown Grammar School LED Lighting, Solar PV, BMS Optimisation, Heating Optimisation Tighnabruaich Primary School LED Lighting, ASHP, BMS Optimisation Port Ellen Primary School LED Lighting, ASHP, BMS Optimisation Lorn Resource Centre ASHP, BMS Optimisation Easdale Primary School ASHP, BMS Optimisation Keills Primary School LED Lighting, ASHP, BMS Optimisation Dalmally Primary School LED Lighting, ASHP, BMS Optimisation LED- light emitting diode (energy efficient lighting) ASHP - Air Source Heat Pump (low carbon heating) BMS - Building Management System PLEASE NOTE NOT ALL OF THESE PROJECTS WILL BE ABLE TO PROCEED & ALL WILL BE SUBJECT TO BUSINESS CASE. THIS IS A SCOPING LIST THAT WILL BE REFINED DEPENDING ON THE BUSINESS CASE ANALYSIS 5.0 CONCLUSION 5.1 As the profile of energy and environmental issues continues to rise, this project has played a significant role in helping the Council to comply with increasingly challenging carbon reduction targets whilst integrating robust monitoring and verification procedures into its capital delivery program to validate savings achieved.
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5.2 This delivery model has maximized best use of Council resources whilst ensuring best-in-class energy efficiency solutions were deployed resulting in value for money low carbon technologies across our built estate. 6.0 IMPLICATIONS 6.1 Policy – This paper content is entirely consistent with climate change policy and action at local, national and international level. 6.2 Financial – Capital and revenue investment is required to make our estate more energy efficient and to meet Climate Change obligations. More energy efficient buildings will also assist help reduce energy consumption and reduce or stabilize utilities costs. Outlines potential projects aligned to Council Budget decision relating to Climate Change. 6.3 Legal – Meeting requirements of Climate Change Scotland Act. 6.4 HR – None 6.5 Fairer Scotland Duty 6.5.1 Equalities – Protected characteristics – None 6.5.2 Socio economic Duty – Creating more efficient buildings that are cheaper to heat is a positive for all. 6.5.3 Islands – None specific 6.6 Climate change – Direct link to meeting net zero obligations for our Council. 6.7 Risk – Not addressing impacts or causes of climate change can lead to increased cost or censure if targets are not met. 6.8 Customer Service – Creating warmer or more efficient buildings that are cheaper to heat is a positive for all. Douglas Hendry Executive Director with responsibility for Commercial Services Councillor Ross Moreland Policy Lead Climate Change & Environment 5th April 2023 For further information contact: Ross McLaughlin, Head of Commercial Services