In 2016 Energy Saving Trust commissioned Amec Foster Wheeler to carry out some research into the energy efficiency and low carbon market in Scotland. Funded by Scottish Enterprise and the Scottish Government with the support of Zero Waste Scotland, the research has provided us with a ‘snapshot’ report from both a demand and supply perspective.
You can read the Executive Summary report here.
If you would like to request a copy of the full research report then please email us on firstname.lastname@example.org.
A total of ninety five buyer organisations and eighty suppliers participated in the research. These included local authorities, housing associations, commercial buyers, installers and energy assessors.
Housing Associations: EESSH targets continue to drive demand from Housing Associations for insulation works and low carbon heating services (an estimated 17% of stock held by survey respondents doesn't presently meet EESSH standards). Average expenditure per respondent is projected at £864K over the next three years.
Local Authorities: Local authority buyers expect to purchase insulation works and low carbon heating services in the next three years. Within their own estates this could value up to £850k per local authority in the next three years.
Higher/further education (HFE): The HFE sector anticipates expenditure of approx. £550k in the next three years per institution. This will be targeted predominantly at insulation works and low carbon heating services.
Other public sector: Across the public sector in Scotland, gaps in buyer procurement skills and short-term funding models restrict the scale of low carbon works undertaken.
Industrial/commercial: Industrial/commercial buyers continue to seek energy efficiency cost savings via low carbon works. However, their projected modal expenditure is modest (less than 10K per organisation).
Buyers are inconsistent in their means of procurement (single/multi-lot frameworks; overlapping funding leading to multiple tenders for similar works; revised tender specifications etc), particularly where opportunities are spread across multi-lot frameworks as it is much easier for larger suppliers to bid across lots. Therefore, buyers need to consider how to engage more fully and effectively with the supply chain, particularly SMEs, through more consistent procurement routes.
Of respondents to this survey, suppliers typically have 10 employees or less and an annual turnover below £500k. Forty-four per cent of respondents offer services across all areas of Scotland. While most suppliers deliver services in-house there is also significant use of sub-contracting to meet specific project needs. Suppliers remain cautious in terms of the scale of market opportunities available to them in the next three years. In addition, around one third of the supply chain is not engaged with public sector buyers.
The research yielded 12 recommendations:
Energy Saving Trust will be working closely with the project partners including the Scottish Government to take forward the recommendations arising from this research.
Energy Saving Trust held a webinar on 11 October which gave an over view of the key insights gained from the research. This included insights into:
You can read a copy of the webinar slides here
On 14 December 2016 the UK Government published their response to the consultation on the Renewable Heat Incentive scheme.
The consultation proposed several changes to the existing domestic and non domestic RHI scheme. Below is a summary of the UK Government’s final proposals in relation to the domestic scheme, which the UK Government intends to implement in spring 2017 subject to parliamentary approval.
If you have any questions about the policy decisions made in the consultation response then you can contact BEIS at email@example.com.
More information on all of the above changes including non domestic can be found is available.
If you have any questions about an existing DRHI application or a system already approved for DRHI payments then please contact Ofgem eServe, the scheme administrators, at 0300 030 0744 between 9:00am-5:00pm Monday-Friday or email firstname.lastname@example.org.
Energy Saving Trust held two workshops with the energy efficiency and microgeneration industry in May/June 2016 to identify what the key barriers are facing these industries in Scotland.
Attendees included installers, manufacturers, assessors, consultants, trade bodies, local authorities and representatives from the Scottish Government. Key topics discussed included:
From feedback given at the workshops we have produced reports highlighting the key barriers facing the industry along with recommendations for overcoming them.
The energy efficiency workshop identified 22 barriers. These include:
The energy efficiency workshop identified 16 recommendations for overcoming these barriers. These include:
The microgeneration workshop identified 10 barriers facing the industry. These include:
The microgeneration workshop identified 10 recommendations for overcoming these barriers. These include:
Energy Saving Trust has provided the Scottish Government with copies of these final reports which will be used to help inform the development of key policy areas including the Scottish Government’s Energy Strategy and the development of Scotland’s Energy Efficiency Programme (SEEP).
Energy Saving Trust will work closely with the Scottish Government to develop an action plan outlining what is required to help overcome the barriers identified in these reports.
To tackle the issue relating to awareness, cost and support available for modern apprenticeships the Energy Saving Trust has organised a seminar and webinar in November for suppliers.
Energy Saving Trust also launched a two week campaign in collaboration with Trading Standards Scotland and Citizens Advice Scotland to raise awareness amongst householders of the tactics used by rogue companies operating in the energy efficiency market.
Energy Saving Trust organised a microgeneration workshop in May 2015 to identify what the key barriers are facing the industry in Scotland. Attendees included MCS installers, manufacturers, distributors and trade bodies. A report from the Microgeneration industry workshop was produced and shared with the Scottish Government’s Microgeneration Task Group.
A report was commissioned in 2014, to analyse the supply chain in remote rural and island areas of Scotland. The report funded by the Scottish Government was partly in response to feedback suggesting householders in these areas may struggle to get certified installers and assessors to carry out work on their properties. It was also to identify what the key barriers were for companies in these areas, in particular barriers to certification. The research covered the following local authority areas:
Interviews with installers and assessors both certified (MCS and Green Deal) and non-certified, and householders with experience of installing, or seeking to install, energy efficiency and renewables technologies were carried out as part of the research.
We will share the key findings coming out of this report with key stakeholders including trade bodies, Green Deal Orb and other key organisations involved with the supply chain. We will then seek to work with these organisations to act on the recommendations coming out of the report.
The Scottish Government have already acted on some of these recommendations through the new HEEPS cashback and loans scheme. The recommendations will also help shape the Scottish Government funded Sustainable Energy Supply Chain programme’s activities in 2015-16.
We have produced a dashboard report providing Green Deal market insights for Scotland (March 2015) in terms of both supply and demand. This report provides data on the supply chain, including the number of Green Deal participants operating in Scotland along with demand side data including Occupancy Assessments and Green Deal plans. Comparisons are also made with UK data based on DECC’s monthly Green Deal and ECO reports.
The report also shows a breakdown of Green Deal Approved (PAS2030) measures against the number of installers able to offer them.