March 2006
Importance Of Energy Management In The Building Sector
The budilding sector, like others now has to respond to increasing environmental and sustainable development issues and concerns. Many will create new business opportunities while others will be challenges, both of which are explored in this article.
The UK construction industry includes a number of large national and international and firms. The majority, however, are local or regional small and medium sized enterprises (SMEs). The industry provides a tenth of the UK’s gross national product, employing approximately 1.4 million people and worth approximately £65 billion per annum.
The industry is driven by and influenced by many economic, social and other factors including national and regional economic development and growth, policies and regulations, demographic change and new technology. It has always shown a high level of responsiveness, adaptability and capacity for innovation.
The industry, like others now has to respond to increasing environmental and sustainable development issues and concerns. Many will create new business opportunities while others will be challenges, both of which are explored below.
Energy consumption in buildings accounts for nearly half of the UK’s delivered energy consumption and over half of the UK’s carbon dioxide emissions. Government Energy policy now recognises the role that energy saving and renewable energy technologies will need to play in reducing emissions of greenhouse gases and the UK’s dependence upon fossil fuels. If these emissions are to be reduced progressively to meet rising target levels, new buildings will need to demonstrate better energy efficiency, particularly in meeting more stringent energy standards.
The construction industry is a major direct user of energy. Diverse site uses include mains electricity, where available, and use of fuels for electricity generation, plant, equipment, vehicles and site building heating and cooling. The sector also has life cycle impacts, specifically the embedded energy in materials used and the energy efficiency of the final product. These diverse uses and sources present difficulties in target-setting, and in monitoring and measurement. The high cost of energy as well as the greenhouse gas implications, however make energy efficiency a primary target for improvement through best practice in the construction phase.
Building design considerations can also have a significant impact. It is possible to design new developments with minimal or net zero carbon emissions, through using a combination of high thermal mass; passive solar design; substantial insulation and renewables. Furthermore, the Energy Hierarchy indicates the priorities for all developers, with attention to design and occupancy and behaviour at the outset, in order to reduce the need for energy.
Building codes and regulations will increasingly require energy efficiency in new buildings. Building Regulations (Part L) are the main influence on standards of energy performance and carbon dioxide emissions. They have been reviewed in 2005 to obtain further savings that will assist in implementing the EU Energy Directive.
Various methods of rating energy performance have been developed (and adopted) to assist in measuring the impact of buildings. A key challenge is to ensure that the existing building stock is raised to optimum levels of performance and efficiency. This is because the impact of existing development on UK emissions will always outweigh gains achieved by new, more energy conscious development.
Additionally, energy provision will, in the future, need to anticipate the effects of climate change (for example, adaptation to flooding, with the increasing use of interceptors and sustainable urban drainage systems).
It is perhaps good practice as much as technology that will deliver the best energy efficiency savings.
Key Drivers for change
- Likely future increases in primary energy costs (especially gas and oil).
- The Government plans outlined in the Energy White Paper (Feb 2003) to curb greenhouse gas emissions (cutting carbon emissions by 60 percent by 2050) by saving energy (and introducing more renewables).
- The 2002 update of Building Regulations (Part L) will progressively raise energy performance standards; a further review has been prompted by the White Paper.
- Duty on Local Authorities to secure a significant improvement in domestic energy efficiency across all housing tenures. The current target is a 30% reduction on 1996 levels by 2010 (The Home Energy Conservation Act 1995).
- Higher energy performance targets for energy management (especially in newbuild) established by some organisations.
- Higher specifications for energy efficiency building materials prompted by the removal of VAT on those products, and the fiscal incentive of enhanced capital allowances.
- The legal requirement to display energy ratings on electrical appliances (EU Eco Label) and SAP (Standard Assessment Procedure) ratings on new homes.
- EU Energy Performance of Buildings Directive to be implemented in UK by Jan 2006.
- Developments can have a marketable advantage on competitors when buildings are sold or let if they incorporate low energy consumption principles into their design. Low running costs can be a selling point for buildings which can give an advantage over the competition.
- There is a small but rapidly growing sector of the market that is occupied by the 'green' consumer. This sector of the market is prepared to pay a premium for buildings that have been designed to 'green' specifications.
- Lower maintenance: Reduced costs in low energy buildings are not limited to reduced energy costs but also improved building performance in terms of damp or condensation which can be expensive to remedy retrospectively and is the cause of significant expenditure by Social Landlords. It is also a key factor in properties remaining empty.
If you require assistance to become more energy efficent or would like more information on energy management techniques, contact Nersi Salehi on 024 7632 3260
Print this page