Greening Government - Environmental Audit Committee Contents


Memorandum submitted by NG Bailey

1.0  SUMMARY OF KEY POINTS

  1.1  The government estate has a pivotal role in driving innovation and delivering new approaches to property management and development that demonstrate that it is possible to achieve considerable CO2 reductions. This will not only be vital to demonstrate the methods and techniques required to achieve this, but must also demonstrate to those outside of government that it is in their financial interest to reduce their carbon emissions and that the investments made in the estate yield financial savings and higher asset values in the context of an emerging low carbon economy, which adheres to the `polluter pays' principle. In our view while there have been some notable individual improvements in reducing carbon emissions from government offices, the UK government must act more rapidly to achieve the SOGE targets.

  1.2  To achieve carbon reductions NG Bailey considers the following points to be of key importance to the government estate.

    — Engage building services engineers and ICT professionals in the early stages of any new build, retrofit, or refurbishment project. It is only through the engagement of teams which understand the overlapping impacts of technologies in buildings that overall low energy solutions can be achieved.

    — Engage building occupants to ensure building services and ICT solutions are fit for purpose and that designed solutions are not "sabotaged" by occupants.

    — Improve lifecycle costing methods. These should factor the future impact of financial instruments which are likely to help shape a low carbon economy (eg Feed in Tariffs, Carbon Reduction Commitment).

    — Carbon offsetting must be a last resort. Offsetting decisions must not influence or disincentivise investment decisions in energy efficiency measures.

2.0  EARLY INVOLVEMENT OF BUILDING SERVICES ENGINEERS AND ICT PROFESSIONALS IN NEW BUILD AND REFURBISHMENT PROJECTS

  2.1  As stated above the early engagement of building services and ICT staff can yield significant benefits when designing and specifying low carbon energy efficient building solutions. Our experience shows that this can yield significant carbon reductions and long term cost savings.

  2.2  NG Bailey chose to invest £5.5 million in a high quality, sustainable offices for its new Scottish Headquarters, Solais House (Gaelic for light) to demonstrate to CEOs, landlords, contractors and the construction industry that standard plan office buildings can be both sustainable and financially justifiable. The project objectives were:

    — To achieve an Energy Performance Certificate grade A.

    — To examine the commercial viability of BREEAM excellence in standard office buildings.

    — To deliver the project on time.

    — To achieve BREEAM "Excellent" status.

  2.3  The opportunity to create a bespoke architectural concept building was not available to us. The office was constructed in order to merge two offices in Glasgow and Edinburgh. We wanted a workspace for 150 staff, between both locations, that was also nearer to key customers in the area. We wanted the new office to be as sustainable as possible, but recognised that most importantly our employees deserved a quality space to work in and an appealing location. The chosen business park's ethos and provisions for tenants were very good, however the location presented a number of challenges from a sustainability perspective including the lack of public transport and planning restrictions imposed by the developer.

  2.4  Early engagement of building services engineers held the key to understanding whether design aspirations could be met and that chosen technologies and solutions would work together.

  2.5  One example of the interconnectedness of the approach is illustrated by the eventual solution that was delivered to reduce the direct and indirect energy consumption used by the offices' servers. The original specification demanded server capacity that would require 6kW of electricity. This not only required its own electrical supply but also provided a heat output which would require air conditioning (an additional electrical demand), to maintain the temperature within the parameters required to ensure the servers function. The multi disciplinary project team were tasked with reducing the power requirements of the servers, without impacting upon functionality, and to create a low energy cooling solution sized to ensure that server performance was not compromised.

  2.6  It was possible to reduce the type of equipment required through thorough evaluation of the way that technology is both used currently and likely future requirements. ICT professionals redesigned the server solution so that the system required only 1.4 kW, while meeting all functionality requirements. In addition to this energy reduction, a room temperature management solution was designed, which incorporated both "free" cooling from the onsite ground source heat pump and a new technology—phase change materials (PCM), which are integrated into the plasterboard walls. PCM effectively acts to add thermal mass by changing state (at a molecular level), at certain temperatures. In effect the material absorbs heat from the air at higher temperatures and releases heat when temperatures reduce. This acts so as to balance the room temperature. When the servers are in maximum operation during working hours the PCM "absorbs" the heat from the environment, thus providing cooling, and at weekend and evenings when the temperature is lower as the servers are not in operation, this heat is released by the PCM. The room is monitored by the building management systems and since the office was opened the temperature has never exceeded 26°C. This means conventional server rooms can be designed with a lower energy requirement for both ICT equipment and temperature control. As a result the energy consumption, and associated carbon emissions, are significantly reduced.

  2.7  This solution is not a single technology solution and is only possible with an investment in a solution which involves both the early and continuous involvement of building services engineers and ICT professionals.

3.0  ENGAGEMENT OF OCCUPIERS

  3.1  In order to ensure energy reduction objectives are met it is necessary to engage occupants and identify how occupant behaviour might deliver energy reduction, or, inadvertently sabotage efforts. In both the construction and occupation phase of Solais House, two taskforces were formed. The "project executive team" (construction) and "Solais House user group" (occupation) were responsible for making sure that every aspect of the construction and occupation of the office were tracked. The groups met on at least a monthly basis and provided a focal point for every element of the project.

  3.2  Staff engagement was critical in being able to gain the support and consensus view on the way the building will be operated and controlled by occupants.

  3.3  The intention was to deliver the same, if not enhanced, functionality to occupants through innovative measures. One illustrative example is the introduction of four Multifunction Devices (MFD), into the office in place of a much higher quantity of, desktop printers which were both energy and resource inefficient. Staff were initially resistant to this proposal as, in their view, the previous solution gave time-pressured individuals greater convenience and privacy to print sensitive documents. The "user group" provided a two-way engagement process which explored how staff buy-in to a new system could be achieved. Such buy in has been critical as there is a moratorium on staff procuring or introducing additional desktop printers. To date this has been universally adhered to and ensures that energy consumption and printer consumable costs and waste materials are minimised.

  3.4  Technological solutions to carbon reduction require occupants to use technology so as to reduce the "unregulated" energy demands of a building.

4.0  ENHANCE COST JUSTIFICATION PROCESSES

  4.1  One of the fundamental barriers to the introduction of energy efficient refurbishment or build is where a decision is taken on the premise of an energy efficiency measure but the cost justification does not meet pay back periods specified.

  4.2  This is particularly relevant where cost justification models are based upon current energy costs. The opportunity to influence a building design may require additional capital spend in the short term but can yield significant cost savings. Cost justification models for Solais House demonstrate that the additional investment of 850k above standard design will result in a reduced energy cost of £3.3 million during its lifetime. In our view this calculation does not represent the actual financial benefit that will be realised as the realisation of a low carbon economy will inevitably reward low carbon buildings with higher asset values and lower operational costs. However there are insufficient models which factor in the impact of the regulatory and market changes that are likely to be demonstrated in a low carbon economy, such as the influence of carbon pricing (Carbon Reduction Commitment), incentives to produce renewable energy (Feed in Tariffs), or the impact of Energy Performance Certificates (EPC) or Display Energy Certificates (DEC) ratings on market asset values. The development of a universally recognised payback model may facilitate more investment decisions.

  4.3  There are some emerging calculations, such as the Marginal Abatement Cost Curve, which factor the cost of carbon for organisations covered by carbon trading schemes. Therefore, the potential for interdepartmental carbon trading would appear to have some merits as long as the price for carbon enables greater investment in carbon reduction measures. However an appropriate and easy to use cost evaluation tool should be created to allow all proposals to be evaluated within this context.

5.0  CARBON OFFSET AS A LAST RESORT

  5.1  While carbon offsetting will enable the government estate to achieve carbon neutrality in 2012 our view is that this expenditure should not detract from investment in energy efficiency measures.

April 2009





 
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