2030 CLIMATE STRATEGY - Delivering a Net Zero, Climate Ready Edinburgh Draft: June 2021 - Edinburgh Council

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2030 CLIMATE STRATEGY - Delivering a Net Zero, Climate Ready Edinburgh Draft: June 2021 - Edinburgh Council
2030 CLIMATE
STRATEGY
Delivering a Net Zero,
Climate Ready Edinburgh
Draft: June 2021
Net Zero Energy Generation and Energy Efficient Buildings
                                               Figure 14: Renewable electricity generation (MWh/year) in Edinburgh. (Source: Department for Business,
Energy to heat and power                       Energy and Industrial Strategy (BEIS) - Renewable electricity by local authority, September 2020)
Edinburgh’s buildings is one of
the biggest sources of
greenhouse gas emissions in
the city.
Energy accounts for 68 percent of the
city’s emissions, with around half of this
coming from domestic homes. Natural gas
accounts for 35 percent of the city’s
emissions, with around two thirds of
domestic energy, and around 40 percent of
non-domestic, currently provided by gas.

Local renewable energy generation
levels are low
The cost of electricity in comparison to gas
is currently high, and Edinburgh has
relatively low levels of local renewable
electricity generation (currently only two
percent of the city’s total electricity
consumption).

                                                                                                                                                    2
requirements for hydrogen-ready                 Figure 15: Energy consumption by fuel source:
The city is growing, and energy                                                                         (Source: Edinburgh Carbon Scenario Tool,
                                                        appliances and a gas grid supporting it are
demand is set to increase                                                                               based on Department of Business, Energy and
                                                        not yet clear and still being piloted through
The city is growing, with more people, new              innovative projects like H100 Fife or           Industrial Strategy (BEIS) datasets (2017/18
developments and more buildings across                                                                  data)
                                                        Hy4Heat.2. While maintaining watch on
the public, private, commercial and                     this innovation, the city will take an
domestic sectors driving the need for city-             electricity first approach to meeting the       The city has a high proportion of
wide heat and energy generation and                     city’s needs.                                   older buildings which need adapted
distribution solutions.                                                                                 to be energy efficient and resilient to
                                                                                                        the impacts of climate change.
This will create increased demands on the
infrastructure supporting our energy                                         4%    1%                   Edinburgh has a rich mix of heritage
                                                                        1%                              buildings and buildings in conservation
supply, with peak demand across the UK
estimated to increase between 33 percent                                                                areas which are an asset to the city’s
and 58 percent by 2050.1                                                                      31%       cultural wealth. These buildings make a
                                                                                                        major cultural, social and economic
The city’s energy networks and                              27%                                         contribution to the city. While these
supporting infrastructure need to                                                                       buildings require a lot of energy to heat
change at speed                                                                                         and a bespoke approach to their
                                                                                                        adaptation, keeping them well conserved
Local heat and energy generation and
                                                                                                        and maintained can improve their energy
distribution (including heat networks) is
                                                                                                        efficiency. Edinburgh’s Old and New Town
largely considered on a development-by-                           15%                                   is an UNESCO World Heritage Site and is
development basis. This means as a city                                                     21%
                                                                   Natural Gas Domestic                 already feeling the impacts of climate
we need to make decisions in a more
                                                                   Natural Gas Non domestic             change. As well as its historic and cultural
strategic way, and position Edinburgh to
                                                                   Electricity Domestic                 importance, it is a place where people live,
maximise the commercial, carbon
                                                                   Electricity Non domestic             work and study.
reduction, energy savings and resilience
                                                                   Other fuels Domestic
benefits potentially available.                                                                         Around 48 percent of Edinburgh’s homes
                                                                   Other fuels Non domestic
                                                                                                        were built pre-1945, with many requiring
Green hydrogen may be able to offer                                Fugitive emissions                   essential maintenance repairs and
future solutions, but the technology is still
                                                                                                        upgrading (‘retrofitting’) to become more
being developed and tested, and future

1                                                       2
    Future Energy Scenarios, National Grid, July 2020    H100 Fife, SGN, accessed June 2021; hy4heat,
                                                        accessed June 2020
                                                                                                                                                    3
resilient to future climate change and                Only 15 percent of homes in the city are      The age, range, and complexity of the
energy efficient.                                     owned by the local authority or housing       city’s operational estate means the costs
                                                      associations3. This means the city is         of retrofitting large operational buildings to
Forty-two percent of homes have energy                dependent on businesses, owner-               become net zero is significant, and current
performance certificate ratings of D or               occupiers and private landlords investing     financing models for resourcing retrofit
lower and regulations proposed by the                 in their buildings if we are to reduce the    have limited commercial return, making it
Scottish Government in the national draft             city’s emissions and ensure buildings are     difficult to lever the external investment
Heat in Buildings Strategy would mean                 climate resilient, with communal spaces       needed.
that by 2035, all domestic properties will            and mixed-tenure buildings requiring
need to have an EPC rating of C or higher.            owners to co-operate on organising retrofit   Retrofitting large operational buildings
For Edinburgh, this could be as many as               works.                                        takes a long time and comes with
100,000 homes in Edinburgh that will                                                                significant disruption to services given the
require retrofitting.                                 Many of Edinburgh’s residents will need       number and size of buildings.
                                                      financial support to be able to meet the
                                                      costs of retrofitting their homes to the      Ensuring action on energy delivers
    A                                                 required standards, and to reduce energy      wider social and economic benefits
                                                      demand to a level where non-gas heating
    C                                                                                               We have an opportunity to make investing
                                                      systems are affordable to run.                in energy infrastructure and retrofitting the
    E                                                                                               city’s buildings an investment in
                                                      The costs of upgrading the city’s             Edinburgh’s economic recovery.
    G                                                 public buildings are significant
        0%      20%           40%           60%       Public sector partners also own large         Heat and energy development offer
                                                      amounts of operational estate across the      opportunities for public and private
Figure 16: Scottish domestic building energy                                                        investment at scale, and with confidence in
performance based on EPC rating..Source:
                                                      city, with the Council alone owning over
                                                      600 buildings – around 40 percent of          revenue-generating infrastructure.
Scottish Government data (Data available for                                                        Improving the energy standards of our
4,905 properties only out of 238,269                  which were built within the last 50 years,
                                                      with 30 percent being over 100 years old.     buildings and developing new energy
households)
                                                      Other city partners, such as Edinburgh’s      infrastructure presents opportunities to
                                                      universities and the NHS, face similar        generate new markets, creating local jobs
                                                      estate challenges.                            and skills development opportunities,
                                                                                                    delivering financial returns to be re-

3
 : Scottish House Condition Survey: Local Authority
Analysis 2017-2019, Scottish Government, February
2021
                                                                                                                                                   4
invested locally, which supports               We will have preserved our UNESCO              this work to ensure it supports community
community wealth-building and a just           World Heritage site and historic buildings,    wealth building and a just transition to a
transition to net zero.                        taking an ‘Outstanding Universal Value’        resilient net zero city.
                                               approach, and protecting the embodied
Our vision                                     carbon they hold. The rest of our homes
                                               and city buildings will be fully adapted to           Energy efficient new buildings
Our vision is that by 2030, citizens           our changing climate and will have heating
and businesses will be heated and              and cooling systems that are able to deal
powered by clean energy, and we                with wetter winters and hotter summers         National requirements for new domestic
                                                                                              buildings are set to change, with no new
will all live in homes that are warmer         The scale of the work required to improve      developments being permitted to connect
and healthier to live in.                      Edinburgh’s buildings and energy               to the gas grid from 2024. If we are to
                                               infrastructure means we will create local      meet our ambition for Edinburgh, we need
Better-insulated, energy efficient buildings
will have significantly reduced energy         jobs and skills development opportunities      to go faster on low carbon heat.
demand, helping to lower costs, and will       – allowing us to support local businesses
                                               and build community wealth.                    ‘City Plan 2030’ will set high energy
be heated and powered by clean energy                                                         standards in new developments and
– including more locally generated or          Our strategic approach                         require the use of low and zero
community-owned renewable energy –                                                            emissions technologies to heat and
helping to reduce the risks of energy          We will lay the foundations for change by
                                                                                              power the city’s new buildings.
insecurity.                                    understanding energy demand across
                                               the city and setting progressive planning              Planning for a clean energy
Financial assistance will be available for     policies that support change.                          future
citizens on lower incomes to help meet the
costs of retrofitting their homes – reducing   We will bring partners together to create      To deliver change to heat and energy over
running costs, which in turn will help         an energy masterplan for the city and          the next 10 years, we will undertake data-
tackle fuel poverty.                           collaborate on exemplar retrofit pilots,       led energy mapping across the city to
                                               using the learning to develop joint city       better understand current and future
Public services will be collocated in a        retrofit plans that secure economies of        demand, and the opportunities for new
smaller number of high-quality energy          scale.                                         local generation and distribution systems,
efficient buildings, that make better use
of what we retain, to offer joined up local    We will align city investment in public        The Council will enter into a strategic
services that better meet our resident’s       buildings and energy infrastructure to         partnership with SP Energy Networks to
needs, and deliver savings to the public       support 20-minute neighbourhoods, and          align investment in the grid and associated
sector that can be re-invested in services.    we will support citizens and businesses        infrastructure with the city’s future energy
                                               to invest in their buildings. We will target   needs. This will help ensure the grid is
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able to meet increased demand and                                                                  ensure all Council-led infrastructure
infrastructure is improved at strategic                                                            investment plans will seek opportunities to
locations which support city development.                  Investing in energy                     connect to heat networks as they are
                                                                                                   developed, beginning with the Council’s
We will establish a new City Heat and              To deliver the city energy masterplan, the      learning estate programme.
Energy Partnership with key public and             partnership will work with the Scottish
private sector organisations. The                  Government and private and public sector
partnership will be tasked with co-                partners to develop a long-term shared
ordinating investments and supporting the          investment strategy and delivery                        Improving the city’s public
delivery of flagship actions for the city.                                                                 buildings and energy
                                                   mechanisms. This work will focus on
                                                                                                           infrastructure to support thriving
                                                   maximising opportunities for local revenue
The partnership will develop a city-wide           generation and securing a clean and                     local neighbourhoods
heat and energy masterplan which will              affordable renewable energy infrastructure
incorporate a Local Heat and Energy                                                                The city’s public buildings need to be
                                                   for citizens and businesses.                    energy efficient, meet citizen’s needs, and
Efficiency Strategy align current and future
grid development to the city’s energy                                                              support 20-minute neighbourhood models
needs.                                                                                             that ensure easy access to local services
                                                                                                   and reduce the demand for travel.
                                                           Developing heat networks
The strategy will also include support for
renewable energy, micro grids and                                                                  We will collaborate with city partners, to
                                                   The partnership will work with communities      strategically and align investment in our
measures to lower the cost of electricity
                                                   and developers to deliver heat networks         estates to ensure it supports improved
and tackle fuel poverty, as well as meeting
                                                   that meet the needs of key public sector        service delivery, improved energy
national requirements4.
                                                   buildings and major new developments            efficiency and reduced emissions.
This will include working with Edinburgh           across the city (focussing initially on major
and South East City Region Deal partners           new developments at Granton Waterfront          To achieve this, we will develop a joint
to develop regional renewable energy               and the BioQuarter).                            public sector estate retrofit plan that will
solutions. This work will draw on the                                                              create economies of scale, support local
                                                   The Council will identify heat network          companies, and unlock the potential large
region’s wind, geothermal, hydro and solar
                                                   zones, in line with emerging regulatory         scale retrofit has to signal future needs to
assets and will look to learn from the H100
                                                   requirements. It will work with developers      the supply chain, stimulate targeted
hydrogen pilot.
                                                   to further expand heat networks and will

4
 Heat in buildings strategy - achieving net zero
emissions: consultation, Scottish Government,
February 2021
                                                                                                                                                6
workforce and skills development, and             Phase 2 extending the heat network to           We will work with Housing Associations
create new local jobs in the city.                further buildings on the site.                  and Registered Social Landlords to secure
                                                  The Western General Hospital is a major         economies of scale and extend the reach
We will work with the Heat and Energy                                                             of programmes across Edinburgh’s 35,000
Partnership to develop supporting place-          consumer of energy, so the plans for the site
                                                  have potential to make a contribution to the    social rented sector homes.
based energy infrastructure projects –
                                                  net zero pathway for the city as a whole and
to ensure joint public sector estate retrofits    potentially integrate with wider energy
include consideration of net zero heat and        systems and heat networks.                                Supporting citizens and
energy generation solutions, planned to                                                                     businesses
meet neighbourhood’s needs.                       Source: NHS Lothian

                                                                                                  Owner occupiers, private landlords and the
                                                                                                  city’s businesses will also need to invest in
 Case study: Western General Hospital                                                             their buildings if we are to reduce the city’s
 Heat Network                                              Warm, comfortable and                  emissions. We will work across the
                                                           affordable social housing              public/private/domestic sectors to develop
 NHS Lothian has commenced a major
                                                                                                  exemplar retrofit pilots which will test
 programme of energy efficiency works at the     Improving the energy efficiency of
 Western General Hospital to deliver high                                                         innovative finance models to support
 energy efficiency systems and low carbon
                                                 Edinburgh’s existing homes is one of             retrofitting, including in challenging mixed-
 technologies.                                   the most effective steps we can take to          tenure and heritage settings.
                                                 reduce the city’s emissions. Achieving this
 The works are urgently needed to replace        will mean bringing forward a programme to        We will share learning from pilots with the
 ageing infrastructure, but the overall aim of   carry out ‘fabric first’ building upgrades       Scottish Government and call on them to
 the programme is to find a pathway to net       at pace, to support accelerated uptake of        develop and roll out new incentivisation
 zero in line with NHS Lothian Carbon            new smart energy controls and low                models to support citizens and
 Commitments. The pathway is based on                                                             businesses to invest in improving the
                                                 carbon heating and cooling systems.
 replacing the old steam network with a low                                                       energy efficiency of their buildings,
 temperature district heat network (cont…)       We will deliver an advanced whole house          targeting financial assistance toward low-
 and commissioning a new energy centre for       retrofit programme across existing
 the site.
                                                                                                  income households to help tackle fuel
                                                 Council homes based on the EnerPHit              poverty.
 Phase 1 of the project is complete with part    retrofit standard, which can deliver up to
 of the site now served by the new Low           an 87 percent reduction in emissions              Case study: Integrating fabric first
 Temperature Heat Network. The project will                                                        approaches to achieve wider community
                                                 while also improving health, comfort and
 be phased over a number of years, with                                                            benefits in social housing
                                                 affordability for tenants.

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The City of Edinburgh Council manages                    evaluation to assess the carbon and energy         We will ensure these opportunities deliver
    approximately 20,000 homes which consists of             cost savings.                                      economic benefits for citizens and the city
    a significant number of ‘hard to treat’ non-                                                                by working with the industry and South
    traditional construction types which can                 These pilot projects will inform the longer-term
                                                             investment and roll out of the whole house         East Scotland City Region Deal partners
    present significant technical retrofit challenges.
                                                             retrofit programme.                                on their skills development programmes to
    The Council is currently developing a Whole                                                                 ensure the city has the workforce needed
    House Retrofit approach. This approach will                                                                 to transform with a focus on green
    initially assess which advanced whole house                                                                 construction skills.
    retrofit standards (such as EnerPHit) are the
                                                                         A new skilled workforce,
    most suitable from a technical and financial                         making Edinburgh a centre
    perspective, across the various Council                              for excellence                          Case study: Canongate Housing
    housing archetypes to align with the Council’s                                                               Development Energy Efficiency and
    long-term net zero carbon targets and to also
                                                         A large new skilled workforce will be                   Conservation project
    provide energy savings for tenants.                  needed to deliver new energy
                                                         infrastructure and retrofit at scale and                In March 2021, Edinburgh World Heritage in
    Whole House Retrofit focuses on fabric first         pace across the city’s public, private and              partnership with the City of Edinburgh
    measures, including improved thermal                                                                         Council undertook an innovative pilot to
                                                         domestic buildings. The Scottish
    insulation, airtightness and ventilation to                                                                  retrofit a mixed tenure tenement block of
                                                         Government has committed to developing                  post-war B-listed development, designed by
    significantly reduce energy demand and the
                                                         a Climate Emergency Skills Action plan to               Sir Basil Spence in the late 1960s.
    need to heat the home. It also helps to ensure
    homes deliver health, comfort and affordability      support market demand for the skills                    Focusing on 10 flats and 2 commercial units,
    benefits to tenants.                                 required and national data suggest there                the project aimed to both improve energy
                                                         could be:                                               efficiency and restore or repair its original
    The wider Whole House Retrofit programme                                                                     features.
    will be a key component of the Council’s wider       • Between 1,500 and 9,000 jobs over 15+                 Supported by funding from the Scottish
    area-based regeneration approach which has             years in zero carbon energy (including                Government and Scottish Power Energy
    the potential to transform neighbourhoods and          renewables, hydrogen and storage)                     Networks’ Green Economy Fund, the project
    provide environmental, social and economic                                                                   developed and tested innovative and
    opportunities.
                                                         • Between 6,000 and 13,000 jobs over
                                                                                                                 replicable delivery models for the retrofit of
                                                           10+ years in decarbonising buildings                  domestic/non-domestic listed properties
    Pilot projects will be developed to assess the         and broadband                                         considered as hard-to-treat.
    benefits and practicalities of an advanced
                                                         • Between 2,000 and 3,500 jobs over
    whole house retrofit approach across a variety                                                               Source: Edinburgh World Heritage
    of the Council’s most common building                  three years in building new social
    archetypes, along with detailed monitoring and         housing.5 6

5                                                        6
 Green Jobs in Scotland, STUC, accessed June              Green Jobs in Scotland, STUC, accessed June
2021                                                     2021
                                                                                                                                                                  8
Net Zero Energy Generation and Energy Efficient Buildings
Outcomes
     Heat and energy generation and distribution is clean and renewable, and buildings are energy efficient and resilient to climate change.

     The cost of heating and powering the city’s homes and other buildings is reduced, helping to tackle fuel poverty.

     Retrofit and energy infrastructure projects are delivering economic and social benefits to businesses and citizens supporting a just transition.
Action                        Next steps and Indicative delivery timeframe                                                     Delivery partners

1.   Laying the policy        • Set progressive planning policies to increase energy standards in new buildings. 2021–2023     The City of Edinburgh Council, The
     foundations              • Require the use of low and zero emissions technologies to heat and power the city’s            Scottish Government, developers,
                                buildings. 2021–2023                                                                           Registered Social Landlords

2.   Developing a city        • Convene a City Heat and Energy Partnership. 2021–2023                                          The City of Edinburgh Council,
     energy masterplan        • Develop a city-wide heat and energy masterplan. 2021–2023                                      NHS, Edinburgh universities,
                                                                                                                               Scottish Water, Scottish Power
                                                                                                                               Energy Networks, Scottish Gas
                                                                                                                               Network, and other key partners.

3.   Grid investment          • Establish a strategic partnership with Scottish Power Energy Networks. 2021                    The City of Edinburgh Council, SP
                              • Align current and future grid development to the city’s energy needs. 2022-2030                Energy Networks

4.   Energy investment        • Develop a long-term shared investment strategy to deliver the city energy masterplan. 2021–    City Heat and Energy Partnership,
     strategy                   2023                                                                                           The Scottish Government, private
                              • Agree appropriate delivery mechanisms. 2021–2023                                               sector

5.   Developing regional      • Develop regional renewable energy solutions which draw on the area’s wind, geothermal,         City Heat and Energy Partnership
     energy solutions           hydro and solar assets. 2024-2027
                              • Learn from the H100 hydrogen pilot. 2024-2027
6.   Developing heat          • Identify heat network zones across the city. Early 2022                                        The City of Edinburgh Council
     networks                 • Ensure all Council-led infrastructure investment plans seek opportunities to connect to heat
                                networks, beginning with our learning estate programme. 2023 - 2027                            City Heat and Energy Partnership
                              • Work with communities and developers to deliver heat networks which meet the needs of
                                key public sector buildings and major new developments across the city, beginning with
                                Granton Waterfront and the BioQuarter. 2023 - 2027
7.   Focussing on place-      • Collaborate on place-based joint energy infrastructure projects which maximise opportunities   City Heat and Energy Partnership
     based projects             to deliver low-cost, clean, renewable energy to neighbourhoods and communities, with a
                                focus on areas experiencing inequalities. 2024–2027

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8.   Retrofitting the city’s   • Develop a plan for retrofitting social housing across the city to the highest energy standards,   The City of Edinburgh Council,
     social housing and          to reduce energy demand and tackle fuel poverty. 2028-2030                                        Registered Social Landlords
     public sector estate      • Collaborate on and identify opportunities for a joint public sector estate retrofit programme.
                                 2023-2027                                                                                         NHS, University of Edinburgh,
                               • Ensure retrofit programmes create green jobs and skills development opportunities for             Heriot Watt University, Scottish Fire,
                                 citizens, targeting those at greatest risk of poverty. 2023-2027                                  Scottish Power Energy Networks,
                                                                                                                                   The City of Edinburgh Council, skills
                                                                                                                                   development bodies.

9.   Testing innovative        • Scope and test innovative approaches to retrofit in challenging mixed-tenure and heritage         EIT Climate-KIC, Edinburgh Climate
     approaches for              settings, to deliver exemplar models and accelerate progress. 2021–2023                           Change Institute, Changeworks,
     challenging settings      • Adapt Edinburgh’s World Heritage site to be resilient to climate change. 2021–2023                Edinburgh World Heritage

                                                                                                                                   Edinburgh World Heritage, Historic
                                                                                                                                   Environment Scotland

10. Supporting owner-          • Develop models that support businesses, owner-occupiers and private landlords to invest in        The City of Edinburgh Council, EIT
    occupiers and                energy retrofits. 2024-2027                                                                       Climate-KIC, Changeworks,
    landlords                  • Call on the Scottish Government to bring forward at speed schemes to support citizens to          Edinburgh World Heritage
                                 fund energy efficiency upgrades and decarbonisation of heat in their homes. 2021
                               • Call on the Scottish Government to urge the UK Government to ensure its future Heat in            The City of Edinburgh Council, The
                                 Buildings Strategy includes action to significantly reduce the cost of electricity, without       Scottish Government
                                 passing costs on to other areas of households’ budgets. 2021
11. Resourcing net zero        • Call on the Scottish Government to work with city partners to identify and deploy additional      The City of Edinburgh Council, The
    public buildings             resource to deliver net zero public buildings. 2021–2023                                          Scottish Government, developers,
                                                                                                                                   Registered Social Landlords

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