Energy Efficiency - the
Scottish approach
23 February 2016
Jonathan Grant
Scottish Government
Why are we interested in Energy Efficiency?
• Key to our efforts to:
– Reduce carbon emissions and meet our climate change targets
– Eradicate fuel poverty and hence tackle broader inequalities
… and deliver broader economic benefits.
Scottish Energy Policy:
• Great progress in
decarbonising electricity.
• Now need to reduce
demand for heat.
Improve energy efficiency
Annual Demand: Heat vs Electricity (GW)
Domestic Energy Efficiency
• Energy efficiency is measured using
Energy Performance Certificates
(EPCs) on A-G band scale
• Impressive progress in Scotland:
 Since 2008, we have installed more than
900,000 measures in homes in Scotland to
improve their energy efficiency.
 The share of homes rated EPC band C and above has increased by
71% since 2010
 We now have proportionately 53% more homes with a good EPC
rating (C or above) than England.
Progress in cutting residential CO2 Emissions
• Energy efficiency crucial for
reducing housing emissions.
10,000
• Other factors affect housing
emissions:
 occupant behaviour
 outside temperatures
 and number of houses
• Aim in RPP2 is to reduce
housing emissions by 37% by
2020 and 51% by 2027 from
1990 baseline.
• Probably down c15-20% in 2015
5.00
6.00
7.00
8,000
8.00
6,000
9.00
4,000
10.00
Historic emissions
2,000
0
11.00
Annual Mean Temperature
12.00
Annual Mean Temperature (inverted)
12,000
Historic CO2 emissions in KT
• Homes ~1/4 of total emissions
•
Defined as needing to spend
over 10% of household income
on fuel bills in order to maintain
a satisfactory heating regime.
•
35% of households in Scotland
are fuel poor by this definition.
•
Scottish Government remains
committed to eradicating fuel
poverty, as far as is reasonably
practicable, by end of 2016.
•
3 drivers of fuel poverty:
• energy prices
• energy use/efficiency
• household incomes
•
Eradicating fuel poverty
requires concerted action
across all 3 drivers.
•
Scottish Ministers advised by
Fuel Poverty Forum.
Fuel Poverty
Prices are key. If energy prices
had only risen in line with CPI
inflation since 2002 then fuel
poverty today would be 9.5%.
Wider benefits of investing in Energy Efficiency
In addition to carbon savings:
• Tackles fuel poverty by helping to cut energy
bills (and boost local spending)
• Supports jobs in local communities: £50 million
supports 650 full-time jobs – potentially
dispersed right across Scotland
• Regeneration and urban renewal
• Physical and mental health benefits
• Carbon savings
• Economic growth
• Tackling inequality
Sustainable Housing Strategy
Improving domestic energy efficiency, tackling
fuel poverty and supporting sustainable growth
Information
Incentives
Regulations
Energy Performance
Certificates
(Home Reports)
Home Energy Efficiency
Programmes (HEEPS):
Energy Efficiency
Standard for Social
Housing (EESSH)
Advice Services
Marketing Campaigns
Smart Meters
- Area-based schemes
- National scheme
- Loans / innovative
finance
Plus: Max UKG funding
Regulation of Energy
Efficiency in Private
Sector (REEPS)
New Build Standards
Challenging funding position
Changes to funding for energy efficiency in Scotland
• In addition to general fiscal
constraints, UK Government
changes to the Energy Company
Obligation (ECO) in Dec 2013
reduced the amount of funding
available for energy efficiency.
• Scottish Government responded
by increasing its spending on
energy efficiency and fuel poverty:
£119m in 15/16 is highest ever.
• Meeting the £200m p.a. overall
investment target recommended
by the Energy, Environment and
Tourism Committee.
Domestic Energy Efficiency Spend £m
300
ECO (UK Govt)
SG Home Energy Efficiency
250
Total
200
150
100
50
0
2013/14
2014/15
2015/16
Source: Scottish Government estimates and projections (subject to revision).
Scotland’s Energy Efficiency
Programme - SEEP
• Scotland’s Energy Efficiency Programme will provide an offer of
support to buildings across Scotland – domestic and nondomestic – to improve their energy efficiency rating over a 15-20
year period.
• It will continue to provide support to households suffering from
fuel poverty, and will also seek to leverage further private
investment into improving energy efficiency to support the
development of loan schemes.
• The new programme will look to introduce multi-year funding that
will give our delivery partners the certainty they need to deliver
ambitious energy efficiency projects.
Energy Efficiency Standard for
Social Housing (EESSH)
What is the EESSH?
• The EESSH is the minimum energy efficiency standard
for all Scottish social housing introduced in March 2014.
• It has been developed by the Scottish Government to
reduce fuel poverty and climate change emissions.
• The standard was co-produced with a working group of
Scottish social landlords using peer-reviewed modelling
and case study examples from social housing across
Scotland.
• Progress is monitored by the Scottish Housing Regulator
(SHR).
• Landlords must ensure that all social housing meets this
standard by December 2020.
How does the EESSH work?
• The new standard is based on achievement of
minimum EPC energy efficiency (EE) ratings.
• These differ dependant upon the dwelling type
and primary fuel used.
• Landlords have freedom to decide which
measures to install.
• The standard does not require landlords to
install all the measures included on an EPC.
Ratings
EESSH minimum ratings for 2020
EE Rating (SAP 2009)
Dwelling type
Gas
Electric
Flats
69
65
Four-in-a-block
65
65
Houses (non-detached)
69
65
Detached
60
60
Other fuels – SHQS requirements.
Projected benefits
• Savings in fuel cost – £130m pa for
tenants, average of £210 & possibly more
depending on fuel price inflation.
• Reduced carbon emissions – 1,275 tonnes
per dwelling or 761kt for social housing
sector – equivalent to all household
emissions from Aberdeen and Dundee
combined.
Estimated costs
• Social housing sector already 64%
compliant after SHQS.
• £310m estimated cost for 88% compliance
using only “Reasonable Measures.”
• £900m estimated total cost for 99%
compliance using all available measures.
Funding
• ECO: Measures are generally ECO eligible and
(post 2018) it is expected that a new Scottish
ECO will be operational.
• HEEPS ABS - Mixed tenure and “enabling”
funding to support admin costs and the
challenges of involving owner-occupiers.
• Others include: RHI, Green homes cash-back for
social landlords (now closed), SG loans.
• SEEP will develop new loan schemes.
Exemptions & Review
• Temporary exemptions including legal,
cost and refusals.
• 2017 review will consider progress to date,
funding position, design and next
milestones.
Information
The EESSH website:
www.energyefficientsocialhousing.org
• examples of case study properties,
available measures and funding sources;
• implementation guidance;
• temporary exemptions guidance;
• regulation information; and
• a guide for tenants.