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London’s building retrofit programme
"Putting our energy into reducing yours"
Dimitri HadjidakisProgramme Delivery Unit Director
The Mayor’s CommitmentLondon Mayor’s
Climate Change Target
Today 2020 2025 2050
UK Climate Change Act
(2008)
European 20-20-20
Target
The Mayor’s commitment
• Reduction in
greenhouse gas
emissions by 60%
below 1990 levels
by 2025
• Reduction in
greenhouse gas
emissions by 80%
below 1990 levels by
2050.
• Reduction in greenhouse
gas emissions by 20% below
1990 levels by 2020
• 20% increase in renewables
• 20% cut in energy
consumption
Run a mini competition to select an Energy
Service Company (ESCo) to carry out the works
Identify buildings to retrofit, set a target energy
saving and payback period
The RE:FIT approach
Summary
% Savings
Service Company (ESCo) to carry out the works
and guarantee energy savings
Payback of the investment is guaranteed with
the delivery risk transferred to the ESCo
RE:FIT allows public bodies to make substantial cost savings, reduce energy bills
and the carbon footprint of their buildings
Maximum Investment
Payback Period
• District Heating
• Combined Heat & Power
• Variable Speed Drives on pumps and fans
• PC control
• Voltage optimisation
• Lighting & controls
• Building Management System upgrades
• Heat recovery
Energy Conservation Measures include:
• Solar thermal
• Photovoltaic panels
• Cavity wall insulation
• Loft insulation
• Pipework insulation
• Secondary glazing
• Draught proofing
• Radiator reflector panels
1E Nightwatchman software for PC auto shutdown
RE:FIT achievements
• Universities
• Hospitals
Retrofitting completed/near completion on 136 buildings including:
• Schools
• Fire stations
68 London organisations are engaged with RE:FIT:
• 25 London Boroughs
• 19 NHS Organisations
• 24 others
• Civic centres
• Office buildings• Hospitals
• Cultural centres
• Colleges
• Fire stations
• Police buildings
• Leisure centres
£2.1m energy bill savings per annum
£13.3m investment
• Office buildings
• Community buildings
• Libraries
First building
retrofitted
RE:FIT Pilot
42 buildings
£1m energy
bill savings
per annum
111 buildings
£2.1m energy
bill savings
per annum
£13.3m
investment
2008 2010 2012
RE:FIT past, present and future
2013 2015 2025
Target > 600
buildings
Savings of up
to £12m in
energy bills
per annum
Pipeline of
680 buildings
Savings of
over £7m p.a.
in energy bills
£63m
investment
2013 2015 2025
Target 40% of
public sector
buildings
Savings of up to
£80m in energy
bills
The Programme Delivery Unit
• Manages the RE:FIT framework of suppliers
• Facilitates the uptake by London-based public sector
organisations
• Supports clients through all programme stages
• Uses experience and lessons learnt to develop best practice
templates and standards
• Fully funded for the duration of the programme
• Provided at no cost to London’s public sector organisations
• The GLA secured funding from the European
Commission under the European Local ENergy
Assistance Programme (ELENA)
• ELENA funds the Programme Delivery Unit (PDU) to
deliver the RE:FIT Programme
Funding the Programme Delivery Unit
• 90% of the £2,671,000 funding is provided by ELENA
and 10% by the GLA
• This means the PDU is provided at no cost to London
RE:FIT users
The PDU has to leverage its cost 36 times in investment
The Programme Delivery Unit team
Dimitri HadjidakisProgramme Director
Chloe DeBanks-HirstProgramme Office
Vicky KingstonGLA Programme Manager
Robert McKinnonMarketing & Engagement
Jon SpringBenchmarking
Tristan OliverTechnical Team
Roger Simpson-JonesProcurement
Merv Chapman
Chloe DeBanks-Hirst
Chris Sampson
Elliot Smith
Phil Toombs
Natalie Crane
David Rees
Catherine Roche
Rommy Perea
Chris Spicer
Mark Phelpstead
The RE:FIT PDU supports users through the whole RE:FIT process:
The RE:FIT process
•Senior support
required
•MoU signed
Gain Secure Investment Install
•Final buildings
selection
•Tendering
approach chosen
ECMs and
savings detailed
and guaranteed
•Measurement
& Verification
•Guaranteed
savings
ServiceGain
Management
Buy-in
Secure
Funding &
Resources
Prepare
Project Brief
Mini
Competition
Investment
Grade
Proposal
Install
Energy
Conservation
Measures
Monitor
Performance
•Internal resource
selected
•Funding approach
chosen
•Benchmarking
•ESCo site visits
•Bids submitted
•Evaluation and
preferred bidder
selection
Installation and
commissioning/
handover
Service
Delivery/
Options include:
• Own funding
• Borrowing directly:
• London Energy Efficiency Fund/Banks/Salix/Public
Works Loan Board
Financing options for RE:FIT projects
Works Loan Board
• Finance through a third party, which could include 'off-
balance sheet' options
• A mix of the above
• Opportunity to make substantial energy and carbon savings
• Savings are guaranteed
• Short payback periods
• An easy to use, free to access framework that is OJEU
compliant
Benefits of RE:FIT
compliant
• A tested, readily accessible and constantly updated and
improved approach
• No access fees and no shared savings
• The Programme Delivery Unit is funded and provided at no
cost to support Public Sector organisations in London
Benefits of RE:FIT
RE:FIT is a public sector initiative for the public sector.
There are no royalty or other costs associated with accessing the RE:FIT
Framework, or receiving the energy savings benefits it will bring you.
Back-up slides
London Energy Efficiency Fund
GLAEuropean Commission
(ERDF via JESSICA)LWaRB
London Green Fund
£100m
(EIB holding fund manager)
£35m investment £50m investment
£18m £32m £50m
£35m private sector pari-
passu co-financingWaste UDF
London Energy Efficiency Fund
LEEF - £100m
(Amber Infrastructure with Arup
& RBS)
RBS match and
complementary
financing £50million
Project Project Project Project
Urban project-level public &/or private additional
financing
Project-level repayable investment (debt)Project-level repayable investment (equity)
Tender options
1. Option 1 - Partner Bid
Select a delivery “partner”
First building
retrofitted
2. Option 2 – Target Bid
Based on supplier technical
solutions
3. Option 3 –
Demonstration Bid
Includes detailed
technical/commercial proposal(s)
on specific building(s)
4. Option 4 – Portfolio Bid
Detailed technical/commercial
proposals for all buildings
• Balfour Beatty Workplace
• British Gas Trading Ltd
• COFELY Ltd
• EDF Energy Customers Plc
• E.ON Energy Solutions Ltd
• Imtech Technical Services Ltd
• Norland Managed Services
Ltd
• MCW
• MITIE TFM Ltd
Framework of approved suppliers
• E.ON Energy Solutions Ltd
• ETDE FM Ltd
• Honeywell Control Systems Ltd
• MITIE TFM Ltd
• Skanska Construction UK Ltd
• Willmott Dixon Energy
Services Ltd
Early project stage programme
• Developed with the client for the client
Benchmarking
• Based on client data and our models
• Provides a range of energy saving, investment and payback options
Case studies: Ealing and Harrow Councils
Project: Retrofit 3 public sector buildings
Energy
savings:
29% guaranteed
savings per annum
Over 1,000 tonnes of
CO2 per annum to be
saved
Value:£1.04m capital
investment5 year payback period
Timescale: Due to complete April 2013Ealing Council
Project: Retrofit 8 public sector buildings
Energy
savings:
38% guaranteed
savings per annum
685 tonnes of CO2 per
annum to be saved
Value:Approximately £1m
capital investment9.5 year pack period
Timescale:Phase 1 completed December 2012
Phase 2 in progressHarrow Council
Case studies: Goldsmiths and NHS Waltham Forest
Ealing Council
Project: Retrofit of university buildings
Energy
Savings:
47% guaranteed
savings per annum
3,000 tonnes of CO2 per
annum to be saved
Value:£6 million capital
investment12 year payback period
Timescale: To be completed by summer 2015Goldsmiths, University of London
Ealing Council
Project: Retrofit 8 PCT buildings
Energy
Savings:
9.5% of annual
energy consumption
139 tonnes of CO2 per
annum being saved
Value:£125,675 capital
investment5.5 year pack period
Timescale: 8 month project completed in Autumn 2011
NHS Waltham Forest (PCT)
Next steps
Memorandum of
Benchmarking & mini
Investment Grade Proposal Measurement &
• Senior management
buy-in
• MoU signed
• Handover meeting
• Building portfolio
selected
• Energy savings
assessed
• Project brief
• Preferred Supplier
selection
• Investment
Grade Proposal
(IGP)
• Building contract
signed
• Capital Project
• To verify guaranteed
savings
• For the duration of the
contract
of Understanding
mini competition
Grade Proposal &
Implementation
Measurement & Verification
