1. London’s building retrofit programme

2. The Mayor’s Commitment London Mayor’s Climate Change Target Today202020252050 Reduction in greenhouse gas emissions by 60% below 1990 levels by 2025 UK Climate Change Act (2008) Reduction in greenhouse gas emissions by 80% below 1990 levels by 2050. European 20-20-20 Target Reduction in greenhouse gas emissions by 20% below 1990 levels by 2020 20% increase in renewables 20% cut in energy consumption Regulatory framework

3. 42% of London’s CO 2 emissions are from workplaces CO 2 emissions from London, 2008 (excluding aviation) 100% = 44.7 million tonnes CO 2 Commercial & Public Sector CO 2 emissions from London, 2008 100% = 19.2 million tonnes CO 2 Workplaces 42% Homes 36% Transport 22% Heating 46% Lighting 19% Catering 11% IT 3% Cooling 5% Hot water 9% Other 7% Public sector comprises health (23%), education (47%) and offices (30%)

4. Run a mini competition to select an Energy 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 Identify buildings to retrofit, set a target energy saving and payback period RE:FIT allows public bodies to make substantial cost savings, reduce energy bills and the carbon footprint of their buildings The RE:FIT model Summary % Savings Maximum Investment Payback Period

5. Jan 2010: RE:FIT framework procurement OJEU compliant framework established Benefits for public sector clients: Provides pre-negotiated, EU compliant contracts No royalty costs to access the framework No shared savings Opportunity to make substantial energy and carbon saving Savings are guaranteed Low payback periods Uses experience to develop best practice templates/ standards

6. 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 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 RE:FIT users 2011: Long-term funding for RE:FIT PDU The PDU aims to leverage its operating costs 25-36 times in delivered capital investment

7. PDU engagement through the RE:FIT process Gain Management Buy-in Secure Funding & Resources Prepare Project Brief Mini Competition Investment Grade Proposal Install Energy Conservation Measures Monitor Performance Service Delivery/ Marketing & Engagement Benchmarking Technical Support Procurement Advice

8. Programme performance Minimum leverage required is £66,775,000 (25 times leverage) Aim to deliver £96,156,000 (36 times leverage) On track to deliver minimum leverage and plan in place to achieve higher leverage 93 London organisations engaged Buildings retrofitted Complete/ being delivered = 235 Square metres of space retrofitted Delivered/in delivery = ~1,000,00 m2 ~24,000 tCO 2 saved ~50,000,000 kWh saved Maximum Total Contract Value

9. RE:FIT achievements Universities Hospitals Cultural centres Colleges Retrofitting completed/near completion on 235 buildings including: Schools Fire stations Police buildings Leisure centres 93 London organisations are engaged with RE:FIT: 28 London Boroughs 21 NHS Organisations 44 others (Central Govt, Education Institues etc) £3.5m energy bill savings per annum £3.1m investment 24,000 tonnes CO2 savings Civic centres Office buildings Community buildings Libraries

10. Case studies: Newham University Hospital and Royal Botanic Gardens, Kew Ealing Council Project:Two-phased upgrade of air handling units Savings: 9.8% reduction in energy costs 732 tonnes of CO2 per annum to be saved Value: £433,000 capital investment 5 year payback period Timescale: Phase 1 completed 2011, phase 2 to complete 2013 Project: Two-phased retrofit across Kew & Wakehurst Place Savings: 7% reduction in energy costs 760 tonnes of CO 2 per annum to be saved Value: £690,000 capital investment Average 6 year payback period Timescale:Installation to be completed summer 2013 NHS Waltham Forest (PCT) Royal Botanic Gardens, Kew Newham University Hospital

11. First building retrofitted RE:FIT Pilot 42 buildings £1m energy bill savings per annum 136 buildings £2.16m energy bill savings per annum £15.1m investment 2008 2010 2012 RE:FIT pipeline Target > 600 buildings Savings of up to £12m in energy bills per annum Pipeline of 370 buildings Savings of over £4.9m p.a. in energy bills £26m investment 201320152025 Target 40% of public sector buildings Savings of up to £80m in energy bills

12. Programme improvements: Financing options Self finance Third party finance (ESCO/ LEEF/ Salix/ Banks) Off balance sheet Range of tender options Schools and SME programme RE:FIT future plans The GLA is committed to supporting retrofit activity to deliver its 2025 targets Next steps: Scale up activity and deliver current programme goals Secure a long-term future for RE:FIT Long-term funding and resourcing strategy Extend to support commercial sector

13. London Energy Efficiency Fund GLA European Commission (ERDF via JESSICA) LWaRB London Green Fund £100m (EIB holding fund manager) £35m private sector pari- passu co-financing Waste UDF London Energy Efficiency Fund LEEF - £100m (Amber Infrastructure with Arup & RBS) RBS match and complementary financing £50million Project Urban project-level public &/or private additional financing Project-level repayable investment (debt) £35m investment £50m investment £18m£32m£50m Project-level repayable investment (equity)

14. E-mail: REFIT@london.gov.uk Or contact Dimitri Hadjidakis Turner & Townsend (+44) 20 7544 4110 Vicky Kingston Greater London Authority (+44) 7920 579298 For more information Visit: www.REFIT.org.uk

15. Back-up slides

16. Balfour Beatty Workplace British Gas Trading Ltd Bouygues Energies & Services FM (UK) Ltd COFELY Ltd EDF Energy Customers Plc E.ON Energy Solutions Ltd Honeywell Control Systems Ltd Imtech Technical Services Ltd Norland Managed Services Ltd MCW/Breathe Energy MITIE TFM Ltd Skanska Construction UK Ltd Willmott Dixon Energy Services Ltd Framework of approved suppliers

17. District Heating CHP VSDs on pumps and fans PC control Voltage optimisation Lighting & controls BMS controls Heat recovery Solar thermal Photovoltaic panels Cavity wall insulation Loft insulation Insulation to pipework Secondary glazing Draught proofing Radiator reflector panels 1E Nightwatchman software for PC auto shutdown Energy Conservation Measures include:

18. The Programme Delivery Unit team Dimitri Hadjidakis Programme Director Robert McKinnon Marketing & Engagement Jon Spring Benchmarking Tristan Oliver Technical Team Roger Simpson-Jones Procurement Chloe DeBanks-Hirst Programme Office Merv Chapman Chloe DeBanks-Hirst Chris Sampson Elliot Smith Phil Toombs Natalie Crane David Rees Catherine Roche Rommy Perea Chris Spicer Mark Phelpstead Vicky Kingston GLA Programme Manager

19. Next steps 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 Memorandum of Understanding Benchmarking & mini competition Investment Grade Proposal & Implementation Measurement & Verification

20. Tender options Option 1 - Partner Bid Select a delivery “partner” First building retrofitted Option 3 – Demonstration Bid Includes detailed technical/commercial proposal(s) on specific building(s) Option 4 – Portfolio Bid Detailed technical/commercial proposals for all buildings Option 2 – Target Bid Based on supplier technical solutions