ADD2128 Driving energy efficiency savings through the London Plan

Type of decision: 
Assistant Director's decision
Code: 
ADD2128
Date signed: 
20 June 2017
Decision by: 
Patrick Feehily, Assistant Director, Environment

Executive summary

The GLA is investigating the viability of introducing a new target, through the London Plan, focused on energy efficiency to encourage new developments to have lower energy demands and help to drive the deployment of low carbon technology and measures, and cost reductions.

It is expected that this target would strengthen the existing energy hierarchy within the London Plan, which requires developers to firstly reduce energy demand and consider passive design measures before considering energy supply options (such as connection to district heating networks) and use of renewable technologies. This target would also bolster the Mayor’s existing zero carbon target for homes (which is expected to be extended to all new developments, including non-domestic buildings, from 2019) and provide assurance that the maximum energy demand reduction has been achieved through on-site measures.

 

Decision

That the Assistant Director approves expenditure of up to £20,000 for the procurement and appointment of consultants to support the GLA’s work to explore the viability of introducing a new energy efficiency target to support the delivery of the existing zero carbon target.  

 

Part 1: Non-confidential facts and advice

Introduction and background

London’s homes and workplaces account for approximately 78 per cent of its greenhouse gas emissions. To deliver the Mayor’s ambition of making London a zero carbon city by 2050, new development will need to minimise its contribution to London’s emissions by meeting the highest standards of sustainable design and construction.

In October 2016, the Mayor introduced London’s zero carbon homes policy requiring all major residential developments to achieve at least a 35 per cent on-site reduction in greenhouse gas emissions above and beyond national government’s standards (the 2013 Building Regulations). Where the target cannot be met on-site, developers are able to offset emissions through other carbon reduction measures off-site. The zero carbon target is expected to be extended to all new developments, including non-domestic buildings, from 2019. 

To support the Mayor’s zero carbon homes policy and ensure on-site savings are maximised, the GLA is investigating the viability of introducing a new target, through the London Plan, focused on energy efficiency. This is intended to encourage new developments to have lower energy demands and help to drive the deployment of low carbon technology and measures, and cost reductions. It is expected that this target would strengthen the existing energy hierarchy within the London Plan, which requires developers to firstly reduce energy demand and consider passive design measures before considering energy supply options (such as connection to district heating networks) and use of renewable technologies for heating and power generation. In addition, it is expected to reduce energy bills for occupants due to the reduced energy demand. This target would also bolster the Mayor’s existing zero carbon homes policy and provide an assurance that the maximum demand reduction has been achieved.

 

Objectives and expected outcomes

GLA-commissioned consultancy advice would establish options for an energy efficiency target to be included in the London Plan, as an improvement beyond Part L of 2013 Building Regulations.

The GLA are seeking to understand the potential upper limits of such a target, along with the cost and technical implications for domestic and non-domestic developments, with the aim of reducing energy demand from new development (and the associated carbon emissions). The results of this research will feed into the next London Plan.

 

Equality comments

The evaluation process will be conducted to ensure that submissions are evaluated fairly to select the offer that provides the relevant experience and offers value for money.  

 

Other considerations

High level risks

 

Risk description

Mitigating actions

  1. Increased costs to developers of the target being set too high, impacting on development viability.

 

  1. ITT clearly sets out the requirement to set out costs to developers and recommend a range of possible targets.
  2. Results to be fed into the London plan viability assessment to test impact on viability prior to implementation.
  1. Lack of a robust evidence base to demonstrate that a specific target can be achieved.
  1. ITT asks for a technical and cost analysis of setting a range of possible targets with supporting evidence. This should include consideration of existing standards for reducing energy demand within the UK and outside it.

 

 

This research links to the Mayor’s Environment Strategy and a zero carbon London by 2050 ambition.

Financial comments

The Assistant Director’s approval is being sought for expenditure of up to £20,000 for the procurement and the appointment of consultants to explore the viability of introducing a new energy efficiency target for the zero carbon homes policy. The cost will be funded from London Plan Programme 2017-2018 Budget.

 

Planned delivery approach and next steps

 

Activity

Timeline

Review tender submissions

Late June/early July

Award contract

Early July

Inception meeting

Early July

Draft report

Mid-July

Review meeting

Mid-July

Final deliverables

End July/early Aug