ASSA Local Energy Network

1. ASSA Local Energy Network Working Together to Reduce Energy Costs and Carbon Emissions

2. ASSA • The Albert Square and St Stephens Association (ASSA) is a residents association representing the interests of the residents of the conservation area made up of a garden square and four streets of Victorian terrace housing in South Lambeth, south west London • Faced with the challenge of climate change and rising energy costs, ASSA is implementing a community-based approach to reduce emissions in our homes by 60%, at zero cost to residents with the help of a group of commercial and not-for-profit partners.

3. The Bigger Picture • We need to reduce CO2 emissions by 60-85% by 2050 to avoid the significant and irreversible effects of climate change1 • 40% of UK CO2 emissions come from residential and commercial buildings • 85% of the current UK housing stock will still be in use in 20502 • 1.5 million of the UK’s 24 million homes are in Conservation Areas or listed as architecturally important 1. UK Government, International Panel on Climate Change, 2 UK Sustainable Development Commission

4. Barriers to Home Improvement • Why aren’t people improving the efficiency of their old homes? • Energy efficiency savings (loft insulation, new boiler, lamps etc. ) pay for themselves over time • Micro generation (solar pv, heat pumps, solar thermal) can be made to pay for itself too once grants are included • We have identified three key barriers: • Lack of money • Lack of time • Lack of knowledge

5. Addressing the Barriers • Monetary: Arrange financing for energy efficiency and microgeneration (inc. arranging grants) with partner bank and power & gas provider such that new energy bill including loan repayment is less than old bill. • Time: Work with Green Homes Concierge (GHC) – LDA funded home energy auditors – to provide a ‘menu of improvements’ specific to each house, due diligence contractors and source equipment • Knowledge: Back up the above two with suite of training, communications and support from GHC, power company, dedicated charities and community networks

6. Goals • 60% reduction in GHG emissions through • 20-30% increase in energy efficiency • 20-30% low-carbon energy generation • 10-15% behavioural change • At zero cost or capital outlay to residents and reduce bills • Try and engage as many houses and flats as possible • Scale necessary to collectively bargain and reduce administrative costs • All owners and tenants benefit from increased home value and/or reduced bills • Buy-in will require good marketing and hard graft!

7. Delivery • Governance: Charity with Management Committee and part-time coordinator • Operations: Management Committee select and coordinate commercial, NGO and community group partners. Coordinator manages project. Commercial partners are required to commit additional resources to deliver this innovative demonstration project • Financing: Improvements funded by personal loans from a high street bank in coordination with the power and gas company. Administrative finances for the charity from grant funding Similar to a traditional Energy Service Company (ESCo) model but charity only coordinates partners, it does not finance or deliver energy

8. Delivery Energy efficiency and microgeneration contractors £ Pay for equipment £ Community Grants ASSA Local Energy Network Charity with Ltd Company Subsidiary Grant funding organisations Install equipment £ Pay for equipment £ Direct Loan Bank For admin and credit purposes, bank has recourse to individuals. £ Capital & Interest Payment vehicle £ Energy payments £ Single Monthly bill Power Company Also provides energy advice line and other support. Power & Gas

9. Community Engagement • Getting everyone involved not just the committed environmentalists is key to the scheme • The key innovation of this scheme is that it is delivered from the ground up – rather than most schemes delivered by companies or government - this increases trust and acceptance of a new concept • We will leverage the following existing networks to deliver the message: • Residents association and local events • St Stephen’s Church and related community groups • Local Schools (Reay, Durand and St Stephen’s) • Key landlords (London and Quadrant, NHS Trust) • Existing informal networks – there exists a strong local community

10. The Bigger Picture II • This is a small project covering 140 houses and 300 residents • It is designed to demonstrate that it is possible to achieve significant improvements in the carbon and energy footprint of the existing housing stock by leveraging existing community networks • If the model works here, we will endeavour to create a legal template and mentor programme that allows communities across London and the UK to ‘copy and paste’ our model

11. Appendix • Energy Efficiency • Microgeneration • Delivery Partners • Regulatory Background • Financial Example

12. Energy Efficiency • 20-30% reductions from energy efficiency • Engage electricity and/or gas provider to participate • Both have regulatory obligations to reduce the CO2 emissions of their customers1 • Get all residents to switch to this provider(s) • Energy efficiency measures carried out by dedicated company • Company carries out energy audit then implements energy efficiency measures such as loft insulation, draught-proofing, newer boiler, CFL lighting, heating controls etc. • Economies of scale given homogenous houses on each street • Ideally, energy savings are guaranteed. These guaranteed savings are like an income stream and mean up-front funding can be provided and paid out off over time form the savings 1. UK Carbon Emissions Reduction Target

13. Micro Renewables • 20-30% reductions from low carbon energy generation • Low carbon energy generation comes in many forms… • Totally renewable energy like solar hot water heating (tubes on south-facing roofs), solar photo voltaic (these come as tiles that look like slate), ground source heat pumps (vertical or horizontal trenches) • Highly efficient solutions such as combined heating and power - boilers that provide heating and produce electricity • Low carbon energy can be expensive and have long payback times but it uses little or no energy once installed. It would be financed through • Energy savings • Grants - there are many, many grants for individual and community programs

14. Regulatory Background • Carbon Emissions Reduction Target • Low Carbon Buildings Programme Phase 1 (Households) & Phase II (Communities) • Community Energy Savings Programme • Community Sustainable Energy Programme (National Lottery/BRE) • Green Neighbourhoods Initiative (2009) • Low Carbon Homes Strategy (2009)

15. Example