Presentation Title - Regensw
Birmingham Energy Savers Implementing the Green Deal PV on social housing – a seminar for social landlords
22nd March 2011
Content • Birmingham Energy Savers rationale • BES Phased approach – Pilot Phase – Phase 2 – Roof top generation – Phase 3 – whole house refurb
Birmingham Energy Savers (BES) • Will contribute towards the target of reducing CO2 emissions by reducing the cost and level of energy usage for homes and businesses across Birmingham • Will deliver benefits to tenants and home owners • Is self financing • Will maximise job creation and investment through capturing opportunities in the supply chain
BES Phased approach July – Oct 2010 phase 1 £0.5M = 60 properties (PV) Phase 2 – Roof Jan 2011 – Sep 2013 phase 2 top generation £13.5m = 2,020 properties (PV) Technology Jun 2011 – Jul 2015 Innovation demonstrator demonstrator £4m – 348 homes (field trial refurb) Phase 3 – whole 2012 – 2015 phase 3 house refurb £100m = 10,000+ properties (Refurb & PV) Expansion Phase 2015 onwards £1.5b = 200,000 properties (Refurb / PV)
– Pilot Phase – – –
–
Phase 2 eligibility • • • • • • • • •
Orientation (south-facing roof). Lack of obstructions (eg. trees or chimneys) Size of roof Structurally sound roof (ie. roof no older than approx. 25 years) Property meets the Decent Homes standard Electrical system in good condition Energy efficiency of SAP rating of 60-65 or above Not in a conservation area or a listed building. No plans for major works to the property in the next 5 yrs – including re-wiring and renewal of roof. • No plans for clearance within the next 30 years. • Good access for scaffolding and installation (internally and on roof).
Phase 2 procurement • Procurement of single company on framework to manage the delivery (engagement, survey and installation) • Procurement of several companies on a framework to deliver components • Both procurements to be novated to Buy for Good • Both procurements to include rebate of up to 2% of value
Procurement of Managing Company 1 The end to end process 1 • External survey (map based and drive by) to ascertain suitability of the property • Orientation roof size etc • Lack of shading • Access issues (scaffolding) • Select properties and enter onto CRM database • Appoint CLO • Send letter explaining scheme and benefits • First CLO visit and issue of scheme brochure
Procurement of Managing Company 2 The end to end process 2 • Draw up installation schedule based on projected sign ups • Order components • Second CLO visit with legal agreement and surveyor • Letter giving 1 week’s notice • Receive components • Arrange installation date • Installation with CLO at hand • CLO follow up visit and issue Green Living pack
Procurement of Components 1 Seven lots 1. Panels 2. Inverters 3. Remote meters 4. Isolators 5. Frames, mounting kits and fixings 6. Electrical connections 7. Storage and delivery
Procurement of Components 2 • •
•
Detailed pricing Re-tendering via mini-competition every 6 months to validate both price and quality Expectation that price will drop, and need to justify price changes
Buy for Good • Buy For Good is a Community Interest Company (CIC), awarding locality based contracts and frameworks (Purchasing Agreements), for use by public, Third Sector and private sector organisations. • Buy For Good will focus local priorities of: • • • • • •
Creating jobs and training opportunities in target communities, Supporting the local economy, Reducing Co2 and the effects of climate change, Minimising environmental impacts Supporting the Third Sector, Stimulating Innovation.
• Buy for Good is a Contracting Authority under the EU Directive. • Purchasing Agreements are awarded in full compliance with the EU Procurement Directive and negate the need for buyers to run their own EU compliant procurement exercise.
Phase 3 aspirations • Create a partnership with utilities and banks (SPV) • Procure an operating company • 15,000 homes refurbished at a cost of £100m – £25m from utilities, £75m from borrowing
• Refinance after 3 years and refurbish the next 15,000 homes
Phase 3 – whole house solution Energy efficiency Lower cost energy bills
Renewables Free electricity (£100-200) pa
Green Deal
Roof rental
£5-7,000
£5,000-£15,000
25 year Green Deal service charge • Charge on energy bills • Help with hard to treat • Help with fuel poor
• Generation and export FIT
Expansion Phase – 200,000 houses by 2026 Houses/pa 25,000
20,000
15,000
10,000
End of BES 3
5,000
0 2012
2013
2014
2015
2016
2017
2018
2019
14
2020
2021
2022
2023
2024
2025
2026
Year
BES3 Operating Model Payments
Other
Contract
Marketing
Delivery Partner Contract
Green Deal + FIT payments
Surveyors
Installation companies
Meter/deemed
Benefits
Energy Companies
Green Deal Payments
15
Refinancing – Asset Back Securities £75m
Illustrative
£375m
£75m • Multi-year from one LA
• Multi-LA programme
£75m £75m £75m
Bank warehouse?
ABS
22nd March 2011
Content • Birmingham Energy Savers rationale • BES Phased approach – Pilot Phase – Phase 2 – Roof top generation – Phase 3 – whole house refurb
Birmingham Energy Savers (BES) • Will contribute towards the target of reducing CO2 emissions by reducing the cost and level of energy usage for homes and businesses across Birmingham • Will deliver benefits to tenants and home owners • Is self financing • Will maximise job creation and investment through capturing opportunities in the supply chain
BES Phased approach July – Oct 2010 phase 1 £0.5M = 60 properties (PV) Phase 2 – Roof Jan 2011 – Sep 2013 phase 2 top generation £13.5m = 2,020 properties (PV) Technology Jun 2011 – Jul 2015 Innovation demonstrator demonstrator £4m – 348 homes (field trial refurb) Phase 3 – whole 2012 – 2015 phase 3 house refurb £100m = 10,000+ properties (Refurb & PV) Expansion Phase 2015 onwards £1.5b = 200,000 properties (Refurb / PV)
– Pilot Phase – – –
–
Phase 2 eligibility • • • • • • • • •
Orientation (south-facing roof). Lack of obstructions (eg. trees or chimneys) Size of roof Structurally sound roof (ie. roof no older than approx. 25 years) Property meets the Decent Homes standard Electrical system in good condition Energy efficiency of SAP rating of 60-65 or above Not in a conservation area or a listed building. No plans for major works to the property in the next 5 yrs – including re-wiring and renewal of roof. • No plans for clearance within the next 30 years. • Good access for scaffolding and installation (internally and on roof).
Phase 2 procurement • Procurement of single company on framework to manage the delivery (engagement, survey and installation) • Procurement of several companies on a framework to deliver components • Both procurements to be novated to Buy for Good • Both procurements to include rebate of up to 2% of value
Procurement of Managing Company 1 The end to end process 1 • External survey (map based and drive by) to ascertain suitability of the property • Orientation roof size etc • Lack of shading • Access issues (scaffolding) • Select properties and enter onto CRM database • Appoint CLO • Send letter explaining scheme and benefits • First CLO visit and issue of scheme brochure
Procurement of Managing Company 2 The end to end process 2 • Draw up installation schedule based on projected sign ups • Order components • Second CLO visit with legal agreement and surveyor • Letter giving 1 week’s notice • Receive components • Arrange installation date • Installation with CLO at hand • CLO follow up visit and issue Green Living pack
Procurement of Components 1 Seven lots 1. Panels 2. Inverters 3. Remote meters 4. Isolators 5. Frames, mounting kits and fixings 6. Electrical connections 7. Storage and delivery
Procurement of Components 2 • •
•
Detailed pricing Re-tendering via mini-competition every 6 months to validate both price and quality Expectation that price will drop, and need to justify price changes
Buy for Good • Buy For Good is a Community Interest Company (CIC), awarding locality based contracts and frameworks (Purchasing Agreements), for use by public, Third Sector and private sector organisations. • Buy For Good will focus local priorities of: • • • • • •
Creating jobs and training opportunities in target communities, Supporting the local economy, Reducing Co2 and the effects of climate change, Minimising environmental impacts Supporting the Third Sector, Stimulating Innovation.
• Buy for Good is a Contracting Authority under the EU Directive. • Purchasing Agreements are awarded in full compliance with the EU Procurement Directive and negate the need for buyers to run their own EU compliant procurement exercise.
Phase 3 aspirations • Create a partnership with utilities and banks (SPV) • Procure an operating company • 15,000 homes refurbished at a cost of £100m – £25m from utilities, £75m from borrowing
• Refinance after 3 years and refurbish the next 15,000 homes
Phase 3 – whole house solution Energy efficiency Lower cost energy bills
Renewables Free electricity (£100-200) pa
Green Deal
Roof rental
£5-7,000
£5,000-£15,000
25 year Green Deal service charge • Charge on energy bills • Help with hard to treat • Help with fuel poor
• Generation and export FIT
Expansion Phase – 200,000 houses by 2026 Houses/pa 25,000
20,000
15,000
10,000
End of BES 3
5,000
0 2012
2013
2014
2015
2016
2017
2018
2019
14
2020
2021
2022
2023
2024
2025
2026
Year
BES3 Operating Model Payments
Other
Contract
Marketing
Delivery Partner Contract
Green Deal + FIT payments
Surveyors
Installation companies
Meter/deemed
Benefits
Energy Companies
Green Deal Payments
15
Refinancing – Asset Back Securities £75m
Illustrative
£375m
£75m • Multi-year from one LA
• Multi-LA programme
£75m £75m £75m
Bank warehouse?
ABS
