NEW DIMENSIONS FROM ARUP | NO.12

City Dynamics A London Special Exploring the challenges facing major cities like London Leadership Funding Connectivity Transport Energy Preservation London by numbers Percentage of heat generated by efficient community heating schemes

LONDON STOCKHOLM REYKJAVIK In 2011, London attracted 26.3 million 3% 60% 95% staying visits London has 40,000 listed buildings Source: London Energy Partnership; Danish Architecture Centre, 2008 Source: London & Partners, 2012 and over 150 ancient monuments Source: London.gov.uk, 2010 2012 London population

2030 London population

London’s underground network consists of 11 lines London is responsible for 8% with 270 stations and a total route length of 402 kilometres = 500,000 People of the UK's CO2 emissions Source: Transport for London, 2012 Source: London Energy Partnership, 2012 Source: Office for National Statistics, 2011

37% DEVELOPED LAND

2025 New York GDP 21% $1915 PRIVATE GARDENS

UK water usage UK Source: Environment Agency, 2012 average 2025 150 London GDP 21% litres PARKS per day $821

2025 London Delhi GDP 21% 161 WILDLIFE HABITATS litres $482 per day 70% of floor space in London’s Source: PricewaterhouseCoopers UK the Square Mile is offices Economic Outlook November, 2009 160,000 Source: City of London 24.8 million Economic Assessment, 2010 hectares trips or journeys are made to, from or Source: Environment Agency, 2010 within London on an average day Source: Transport for London, 2011

1m 2m 3m 4m 5m 6m 7m 8m 9m 10m 11m 12m 13m 14m 15m 16m 17m 18m 19m 20m 21m 22m 23m 24m 25m editorial and contents

City Dynamics News 04 The latest stories from the built environment and beyond Best for Business 06 Jo Valentine, chief executive of London First, discusses London’s position in the world Going Places 08 Can transport infrastructure London has been the focus of the revitalise cities like London? international community this summer and so this edition of A2 takes a fitting look at some of the challenges that major cities like Smarter Estates London face and puts forward some smart 11 Can your estate enable improved financial solutions for addressing these. performance and optimal patient outcomes? Our cities are already home to more than half the world’s population and by 2030 it’s expected that nearly five billion people Data for All will live in metropolitan areas. We need to 14 Smart cities: who is getting be thinking now about how we encourage it right and where? connectivity in these population hubs – how do we make physical connections through transport and infrastructure, or virtual links Self-Funding the Future through communications technologies? 16 Should London’s approach to funding its infrastructure How do we resource our communities developments change? through a sustainable approach to energy and resources? And how do we ensure a healthy population in cities that are calling De-carbonising London’s out for urban regeneration at a time of 20 economic uncertainty? Energy Supply Using London as our benchmark, our Will London meet is target to deliver 25% of its energy contributors to this edition of A2 put through decentralised energy sources by 2025? forward their views on how we can make our cities work for us. I hope you enjoy reading it and find the content valuable. Preserving our Heritage And if you have any feedback, we’d love to 24 Is it possible to successfully conserve artworks whilst hear from you at [email protected]. reducing energy consumption and costs?

Alan Belfield, Director, Arup

A2 Magazine Issue 12 | 3 Legislation Timeline UK Emissions Energy Efficiency news

Drivers 2005 2006 2007 2008 UK2009 Energy2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 - 2049 2050

Global Kyoto Protocol LegislationCoP16 CoP17 legally binding reduction in CO2 equivalent Kyoto Protocol Annex Targets set under the Kyoto Agreement. came into force Cancun Johannesburg 5.2% I country GHG (Carbon Dioxide, Methane, Nitrous Oxide, Sulphur Hexafluoride) and Hydrofluorocarbons and Perfluorocarbons by 2012 (1990 baseline) 16 Feb 2005 Timeline Keeping on top of energy strategies, European Union 8.0% reduction in CO2 equivalent Kyoto Protocol European Union 20% EU Renewable Energy Targets imposed under various EU policies plans, programmes and schemes can be 20% EU GHG Reduction (1990 baseline) 20-20-20 and directives. challenging. Arup has identified the key 20% Less Energy Consumption

legislative and policy drivers to produce reduction in CO2 equivalent Kyoto Protocol United Kingdom a user friendly timeline providing a clear 12.5% 15% UK Renewable Energy (~ 32% Renewable Electricity) United Kingdom picture for developing integrated energy, Targets Targets set under the Climate Change Act 2008. efficiency and emissions strategies.2008 - 2012 Carbon (equivalent) Reduction Budget 2013 - 2017 Carbon (equivalent) Reduction Budget 2018 - 2022 Carbon (equivalent) Reduction Budget Carbon (equivalent) Scotland and Wales targets set by devolved parliaments. Carbon Budgets (midpoint 2010) from 1990 baseline 22% (Midpoint 2015) from 1990 baseline 28% (Midpoint 2020) from 1990 baseline 34% Reduction Budget from The timeline provides an update as the 1990 baseline 31 Mar 2013 01 Apr 2013 01 Apr 2008 01 Apr 2018 31 Mar 2018 31 Mar 2022 Electricity Market Reform (EMR) proposals 80% move to conclusion, along with a4 TWhrange of electricity of 31% of gross 7 TWh of electricity produced from

2011 renewable sources in Wales 2010 produced from electricity consumed

other energy policy mechanisms.renewable sources from renewable 2020 of gross electricity consumed in Wales 1 sources in Scotland 80% A copy can be downloaded from arup.com. from renewable sources in Scotland

European Union Emissions Trading Scheme Stonewall Diversity (EUETS) Olympic Legacy Communities Phase I Large Electricity Producers (>20 MW) Phase II Large Electricity Producers; Offshore facilities; Refineries; Iron & Steel; Cement; Lime; Ceramics; Glass; Phase III Aviation Largest multi-country, multi-industry emissions Offshore facilities (including flaring) Pulp & Paper; Chemicals; Food & Drink; Aluminium; Services; Other Electric; Downstream Gas; Gypsum; (3 years) (5 years) MineralChampions Wool; Aerospace; Vehicle Manufacture; Textiles; Tyres; Munitions. (7 years) 01 Jan 2008

Refineries + Partial inclusion of Others 31 Dec 2012 31 Dec 2007 01 Jan 2013 01 Jan 2005 trading scheme initially focussed on Greenhouse Scheme approved 31 Dec 2020 Gas reduction. Arup has joined Stonewall’s Diversity The Olympic Delivery Authority Planning Committee recently granted outline planning 21% CO2 reduction UK National Allocation Plan (NAP) Champions Programme – Britain’s good permission for the Legacy Communities Scheme for the Olympic Park in London. (2005 baseline) Plan which defines the UK allocation of EK UK NAP 1 245.3 MMT CO2 per year limit UK NAP 2 246.2practice MMT CO employers’2 per year limit forum on sexual This development is seen as one of the most importantEU Allocationregeneration Plan projects in1.74% London’s CO2 reduction per year National Allocation Plans (NAPs) superceded by EU wide allocation plan Allowances (EUA) across the spectrum of carbon EU approved 29 Nov 2006 ~7% Auctioned EUA 100% auctioning or sale of EUAs in Large Electricity Producer (LEP) sector

Free allocation ~52% of UK CO emissions covered 31 Dec 2020 01 Jan 2008 01 Jan 2013 01 Jan 2005 orientation. Stonewall is the largest lesbian, history and will help stitch together the surrounding communities of the four host boroughs, 31 Dec 2012 emitting sectors. 31 Dec 2007 2 gay, bisexual, and transgender (LGBT) providing around 6,800 new homes, schools, shops, parks, infrastructure and jobs. equality organisation in the UK and Europe. The application was submitted by the London Legacy Development Corporation (LLDC) Emissions Performance Standards (EPS) Likely EPS Consultation Restrictive CO2 emissions for coal power plants driving CCC operation? Restrictive emission limits for power generation driving The Diversity Champions programme to fulfil the regeneration objectives of the London Olympic bid. Arup’s transport consulting CCS operation. Not included in 2010 Energy Bill as brings together top employers fromConsultation team has providedProposed planning introduction advice of and stakeholder consultation on strategic highway and originally suggested. Carbon Capture and Storage (CCS) Levy Gas power plants built after 2020 to include CCS ? SO2 limits drove requirementacross for FGD the UK to promote diversity in the rail operations, local highway modelling, and pedestrian movement studies for the project workplace, helping businesses and public since 2005. These studies supported the Environmental Impact Assessments (EIAs) and Large Combustion Plant Directive (LCPD) services to develop inclusive workplace planning applications for the Olympic Park in 2007, legacy transformation in 2010, and this EU Directive imposing limits on Sulphur Dioxide, ‘New New’ Comply with LCPD Emission Limit values (ELV’s) 1 Jan 2016 NOx limit for >500 MWth Solid Fuel (Coal) and/ or trade emission allowances in NERP drops from 500 to 200 mg/Nm3 driving SCR retrofit. Continues unless Plants licensed after 27 Nov 2002 cultures and ensuring staff can perform to latest major success for the Legacy Communities Scheme in 2012. superceded by IED Nitrogen Oxides and Dust. ‘New New’ ‘New’ Plants Opting-Out close by 2023 their full potential. or other Plants larger 01 Jan 2008 ‘Existing Opt-In’ Plants licensed between Joining the programme follows the © Wilkinson Eyre © Wilkinson Emissions ‘New’ UK National Emissions Reduction Plan (NERP) than 50 MWth 1 Jul 1987 and 27 Nov 2002 hugely successful inaugural event of UK specific implementation of Large Combustion ‘Existing Opt-Out’ Limit operation from 1 Jan 2008 to 20,000 hours ‘Existing’ Plants licensed before 1 Jul 1987 Arup’s Connect Out group – the firm’s or close by 31 December 2015 Plants close by Plant Directive. LGBT network – which Lord Browne of 31 Dec 2015 at the latest Madingley recently addressed with an Industrial Emissions Directive (IED) extraordinary and candid lecture describing Decision to opt IED combines directives: Integrated Pollution Prevention and Control (IPPC) Directive; Large Combustion Plant Transitional National Plans Comply with tighter emission controls by 30 Jun 2020 Jul 2020 Recasting of seven existing emissions directives, his experience as a gay manDirective in business. (LCPD); Waste Incineration Directive (WID); Directive limiting Volatile Organic out ‘Older Plant’ Compounds; and Various Titanium Dioxide directives including LCPD and IPPC into a single legislative item. Alan Belfield, Arup Group Board Limit operation from 1 Jan 2016 to 17,500 hours or close Plants close by 01 Jan 2014 01 Jan 2016 ‘Older Plant’ 31 Dec 2023 at the latest Director and Diversity Champion, by 31 December 2023 2 Waste Incineration Directive (WID) commented: “Arup is firmly committed to providing a workplace that supports Continues unless Limits emissions from incineration and co-incineration Imposes Emission Limit Values (ELV’s) for incineration and co-incineration of waste, including limits on: From 04 Dec 2000 Dust; Heavy Metals; Dioxins; Carbon Monoxide; Poly Aromatic Hydrocarbons; SO2; NOx. superceded by IED of waste with a focus on dioxins, mercury and diversity. Our membership of Stonewall’s or other particulate matter. programme demonstrates our intentions Siemens Urban Sustainability Centre to respect, welcome and support LGBT Two and a half years after announcing plans to develop a unique urban sustainability professionals in our business.” centre in East London, Siemens will officially open The Crystal to the public on September 19, 2012. Less than 20 years ROC provision for ROCs end for GB RO Ends Renewables Obligation (RO) From Apr 2002 - 3.0% 9.7 ROCs/100MWh (Actual) 11.1 ROCs/100MWh (Actual)The Crystal11.4% Fixed seeks 10% Headroom to be one of12.4% the Fixed most 10% sustainable Headroom buildings13.4% Fixed in10% London. Headroom To optimise14.4% Fixed 10% Headroom 15.4% Fixed 10% Headroom 15.4% Fixed until 31 Mar 2027 GB (England, Wales & Scotland) any new facility before 2037 existing (accredited 31 Mar 2037 Increasing requirement for suppliers to source sustainable performance, Arup worked closely with Siemens to integrate sophisticated before 25 Jun electricity from renewable sources within the UK. 2008) facilities on NI RO Ends From Apr 2005 - 2.5% ROCs/100MWh (Actual)control and monitoring systems01 into Apr 2012 the building’s design. Less than 20 years ROC provision for NI (Northern Ireland) 3.5 ROCs/100MWh (Actual) 4.27 5%5.0% Fixed Fixed 10% 10% Headroom Headroom 6.3% Fixed 10% Headroom 6.3% Fixed until 31 Mar 2027 31 Mar 2027 31 Mar 2033 The Crystal incorporates several green features. As well as anysolar new photovoltaicfacility before 2033 panels 1 Detail of Arup’s UK Energy Legislation Timeline Renewables Obligation Banding and ground source heat pumps, the building has a rainwater and foul water harvesting and 2 The Crystal in East London Differentiated banding of various forms of renewable 2009 - 2013 Onshore Wind (1 ROC) treatmentOffshore Wind system, (1.75 ROC) and except is enabled 2 ROC if accredited for smart grid connection.2013 - 2017 Banding to be determined by First Banding Review 2017 - 2021 Banding to be determined by Second Banding Review Wave, Tidal, PV (2 ROC) (operational) between 01 Apr 2010 and 31 Mar 2014 generation under the Renewables Obligation. Four Banding Banding Banding

Dedicated Biomass (2 ROC) 01 Apr 2017 31 Mar 2013 01 Apr 2009 31 Mar 2021 01 Apr 2013 31 Mar 2017 yearly cycle of renewable banding levels. 4 | A2 Magazine Issue 12 Final Final Final Marine Supply ROC uplift in decision decision decision Obligation Scotland to 3 for tidal Consultation First Banding Second Banding Consultation Third Banding Consultation Introduced in and 5 for wave, to

Apr 2007 Apr 2009 Oct 2010 Oct 2014 Oct 2018 Scotland replace the Marine Summer 2011 Autumn 2011 Review Review Spring 2016 Review Spring 2020 Autumn 2020 Supply Obligation First Scheme

Energy Review 2013 Feed in Tariff (FIT) PV (29.3 - 41.3 p/kWh) FIT Tariff lifetime: Incentive to support small-scale renewable electricity 5% - 8% return Years 1&2 Wind (4.5 - 34.5 p/kWh) Year 3 Continuation for new entrants after on investment AD, Wind, Hydro - 20 years generation up to a capacity of 5MW. Hydro (4.5 - 19.9 p/kWh) PV (26.8 - 37.8 p/kWh) AD (9.0 - 11.5 p/kWh) Year 3 to be determined PV - 25 years 01 Apr 2010 01 Apr 2012 01 Wind (4.5 - 32.6 p/kWh) 01 Apr 2013 01

Renewable Heat Incentive (RHI) Proposed incentivisation for the generation of heat 12% return on investment Under Air source heatpumps Renewable CHP from renewable and low carbon sources. (6% for solar thermal) Ground source heatpumps Biomass, Bioliquids discussion Solar thermal Biomethane

Climate Change Levy (CCL) 80% 65% Climate Change Agreements A charge on non-domestic consumers’ energy use. extension to be determined Discounts to energy intensive sectors available under discount on climate change levy available to energy intensive discount on climate change levy through Key industry through Climate Change Agreements (CCA) Climate Change Agreements (CCA) 01 Apr 2001 01 Apr 2013 Climate Change Agreements (CCA). 01 Apr 2011 THESE SYMBOLS IN ALL COLOURS DENOTE EXISTING LEGISLATION Carbon Emissions Reduction Target (CERT) 68% achieved through insulation measures Obligation on large energy suppliers to make Energy Efficiency 139 TWh CERT 293 MtCO2 40% targetted at low income and over 70 years of age efficiency savings through support to residential energy consumption reduction expected overall installation lifetime reduction through Commitment (Phase II) domestic energy saving interventions. 15% targetted at high Fuel Povery risk group 01 Apr 2005 01 Apr 2008 customer base. 31 Dec 2012 Energy Company Obligation? THESE SYMBOLS IN ALL COLOURS DENOTE LIKELY OR PLANNED FUTURE LEGISLATION Community Energy Savings Programme (CESP) Details to be determined Obligation on energy suppliers to provide ‘whole house’ 19.25 MtCO2 energy saving solutions to domestic consumers in low reduction in carbon emissions through

01 Oct 2009 ‘whole house’ or ‘whole street’ approach income areas. 31 Dec 2012

Carbon Reduction Commitment (CRC) 30 Sep 2010 End registration ‘Green Deal’ expected to come into effect Energy Efficiency Scheme Applicable if > 6,000MWh per year or on 1/2 hourly Introductory Phase Qualification Period Footprint year 3 Year Introductory Phase (including footprint year) Mandatory energy efficiency and emission reductions metered electricity in 2008 01 Jan 2008 31 Dec 2008

scheme for large public and private sector organisations. 31 Mar 2013 Second Phase Qualification Period Footprint year 7 Year Second Phase (including footprint year) Efficiency 30 Sep 2016 End registration (Third Phase) 01 Apr 2010 30 Sep 2011 End registration Third Phase Qualification Period Footprint Year 7 Year Third Phase (including footprint year) 01 Apr 2015 Building Regulations Statutors instrument defining the standards for new and Part L (Conservation of fuel 25% energy efficiency improvement 44% energy efficiency improvement and power) updated 30% improvement (baseline 2006 Part L) (baseline 2006 Part L) Zero Carbon All new buildings to be 2016 2019 replacement building developments in the UK. 2013 in CO2 emissions Zero Regulated Carbon in Scotland 01 Oct 2010 01 Oct 2006

Code for All new homes to be given Code for Sustainable Homes (CSH) Sustainable a CSH rating Building Regulation 50% improvement Expected 55%

01 May 2008 All new dwellings to be Sustainability assessment process for new homes Homes powers devolved to in CO2 emissions in improvement in CO2

31 Dec 2011 in Scotland introduced Publicly funded Publicly funded Welsh Assembly Scotland emissions on 2006 Publicly funded housing ‘zero carbon’ incorporating performance standards in England 01 Apr 2007 2011 levels in Wales 2008 housing to be housing to be 2015 to be CSH 6 and Wales. CSH 3 CSH 4

Drivers 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 - 2049 2050

Edition No.2 December 2010 We would be pleased to receive your views and comments or for further information, please contact: [email protected] Disclaimer: This publication is intended to provide a high level selective overview of emissions, energy and energy efficiency legislation and should not be relied upon by any third party and no responsibility is undertaken to any third party in relation to it. www.arup.com/ukenergyposter news

The frequency and impact of disasters is increasing, whether Brunel Lecture measured by loss of life or economic costs. This trend is set to continue on tour as the risks associated with climate change are compounded by rapid urbanisation and environmental degradation. In delivering her Brunel Lecture, the 9th in the series, Arup’s Jo da Silva proposes that it is time for civil engineers to cease practising ‘the art of directing the great sources of power in Nature for the use and convenience of mankind’ and instead acknowledge the fundamental role engineers have to play in reducing the vulnerability of mankind. The lecture will start touring 4 globally later this year. 3 © Royal Academy of Engineering New approach to offshore wind turbine foundations GRAVITAS Offshore Ltd has secured funding from DECC and the Technology Strategy Board’s (TSB) offshore wind components technologies scheme to carry out research on the design and construction of concrete gravity foundations for large offshore wind turbines. The company – wholly owned by the shareholders HOCHTIEF, Costain and Arup – will use the £556,250 grant to 5 demonstrate the benefits of the foundation technique and also to develop standards for the solution type. Concrete gravity foundations using readily deployable UK labour resources and expertise are expected Rewarding success to play a key part in delivering Round Three offshore wind farm developments. Naeem Hussain was recently awarded the prestigious Prince Philip Medal in the presence GRAVITAS Offshore Ltd confirmed of HRH The Princess Royal. The medal is awarded biennially to an engineer of any the ongoing work is designed to help nationality who has made an exceptional contribution to engineering as a whole through demonstrate the cost-effectiveness of this practice, management or education. As an Arup Fellow and Global Leader for Bridge approach against foundation technologies Design, Naeem is a worthy recipient of the award. adopted hitherto for offshore wind systems Arup’s Lee Franck and Stuart Ross have also recently been recognised for their in the UK. contribution to the industry, both receiving a Rising Star Award for their achievements made in the early stages of their careers. 3 Wind turbine with concrete gravity foundation Lee’s role in the design of the Timber Wave for the London Design Festival 2011 and 4 Arup’s Jo da Silva her dedication as a mentor to university students contributed to her nomination. Stuart’s 5 Arup’s Naeem Hussain with HRH The involvement on projects including the Water of Leith Flood Prevention Scheme and the Princess Royal Early Careers Group at Arup won him recognition.

A2 Magazine Issue 12 | 5 INTERVIEW Baroness Jo Valentine Best for business London is working hard to keep attracting top business, says Baroness Jo Valentine, Chief Executive of business membership group London First.

Valentine has led London First, a to some extent because we are outside with them over six months so they can let not-for-profit group representing the the Euro. There is a sense that the legal us know what legacy they want current capital’s leading employers, through processes are robust and that politically, business leaders to leave,” Valentine we welcome foreign capital and foreign explains. a decade of growth, the credit crunch investment.” In the current economic climate, London and the current retrenchment. “As a financial centre we are global First is working even harder to create For her, London’s global outlook is vital to because we trade currencies,” she continues. a business-friendly environment. “We its success. “Britain is a small country and “Only New York is in the same league as have a programme looking at New York, it’s in our culture to have a global trading us. We now trade the Renminbi, the official Singapore and Sydney over the next six outlook,” she says. “More than one in seven currency of the People’s Republic of China. months to see what the comparators are to companies in London are foreign-owned And we have the supporting infrastructure understand what we should be learning,” and we welcome that. We’re a hotel for the - everything you need to put a deal together says Valentine. global business community.” - within a few streets.” She acknowledges that this summer has “London attracts businesses from all over Valentine isn’t complacent about posed particular challenges for London as it the world,” Valentine continues. “Because London’s position at the top: “International hosted the Olympic and Paralympic Games: we share a common language – or a version surveys often have us as number one. Our “Every day during the Games we had up of a common language – we attract US job is to make sure we stay there. With to one million extra visitors in the city, companies. We’ve also got a longstanding foreign direct investment into Europe we making an additional three million journeys relationship with India and the Middle are the top destination for financial services. on the busiest days. This is over and above East. And now lots of Chinese companies We must make sure we offer relevant the regular 12 million journeys on public are using London as a toe-hold to explore financial services over the next 20 years.” transport. Managing that at all our points Europe and the US.” To stay ahead, London First keeps in of entry was a huge challenge, but the Valentine points out that London is regular contact with its members about transport system coped well.” also attracting a healthy level of inward what they need for business – now and For Valentine, the challenge was worth investment. “London seems to be a safe in the future. “We’ve gone to 70 people it because of the legacy the Olympics will haven,” she says. “There is less uncertainty under 30 years old inside our membership create. “My ambitions for an Olympic in the UK than in the rest of Europe and we’re holding facilitated meetings legacy are two-fold,” she explains. “The

6 | A2 Magazine Issue 12 Baroness Jo Valentine INTERVIEW

there. We’ve got this new points system and “There is less uncertainty in the UK than in the rest of Europe we’re keen to make sure we have porous to some extent because we are outside the Euro. There is a borders for highly talented people who can add value to London’s activities.” sense that the legal processes are robust and that politically, “And we’re also looking at the long-term we welcome foreign capital and foreign investment.” – where we wish to be in 20 years’ time so we can plot our way there,” continues Valentine. “We re-elected our Mayor in first is that ‘brand London’ is enhanced the best available graduates. We need to May this year, so we want to make sure for the foreseeable future, establishing the think about who we employ and how we that he is successful in his four-year term, city’s place in the world. It’s great to see employ them.” ensuring we get strategic things sorted, opportunities already opening up for London- As it works to attract a strong workforce such as the housing and commercial based companies in Rio on the back of our and keep London as a top city for development that London needs to remain a exceptional preparations for the Games. business, London First has identified two vibrant city.” “My other ambition,” she continues, “is competitiveness campaign priorities. for the Games to have successfully acted as “Firstly, we need to have the air Philip Dilley, Arup’s Global Chairman, is the a catalyst for regenerating the East End of links to the rest of the world,” says Non-Executive Chairman of London First London. The challenge will be making sure Valentine. “We need to be doing more that people have an opportunity to get jobs business with growing markets around London First in the longer-term.” the world, supporting our international London First aims to influence national and “The Mayor of London has jobs and competitiveness and growth, and for that local government policies and investment growth as a mission, as does the national we need to be able to get there.” decisions to support the capital’s global government. It comes back to the business “Secondly, and closely aligned with that, competitiveness. It is a non-profit-making environment you create. The Mayor is keen is our immigration policy — making sure organisation and its agenda is independent of on apprentices and I’m keen on apprentices. that we can attract the best and the brightest party political affiliations. But businesses in London should also be worldwide. Successful places attract the www.london-first.co.uk more imaginative about how we bring in best people who want to work and study

A2 Magazine Issue 12 | 7 FEATURE Going places

Going places How transport infrastructure can revitalise cities like London. Some people have a deep affection for their transport infrastructure. “I know people who say they love even the smell of the Paris Metro,” says Eli Konvitz, an expert on urbanism working with Arup’s interchange design team.

8 | A2 Magazine Issue 12 Going places FEATURE

Tim Williams, former UK government special advisor on housing, local return for the UK because of the opportunity government and urban regeneration, claims for regeneration in the Thames Gateway, that having the right transport infrastructure Forecasts estimate that by 2031 there will its improved environmental impact and its was vital to London securing the Olympics be around 1.25 million more people and connection with the existing rail network, and realising the benefits of hosting a major over 750,000 new jobs in London. So enabling fast domestic stations on HS1.” international event. effective infrastructure is vital to securing The £5.8bn HS1 has transformed travel “For me, the rebranding of east London London’s position as a global business hub between the UK and the rest of Europe. that’s happening as a result of the Olympic and attracting and sustaining the workforce It’s also helped to bring in over £10bn of Games is one of the most exciting things,” that the city relies on. regeneration investment, made the east of he says. “Perceptions are changing about For Konvitz, creating transport the city a more desirable place to live and where the area is – people now see it as infrastructure that can transform the social given skilled workers from the south-east part of central London because of the and economic success of cities is about more of England fast and easy access to the transport links that have been put in place.” than airports, rail lines and stations; it’s about businesses of London. “This shows how capital programmes vision. He points to Arup’s work on High Bostock points to the huge amount can create the context for a broader Speed 1 (HS1) and the rail line’s role in of work that went into creating the transformation,” Williams continues. “Local revitalising the Stratford area of east London metropolitan hub of Stratford - home to authorities need to ask: How can we use as an example of what a vision can achieve. the London 2012 Olympic and Paralympic these capital programmes to transform Mark Bostock led the Arup team Games. “Even before the Olympic bid was areas? How can we use them to get people championing the right alignment for the conceived, Stratford was the focus of one back into work? How can we use them to Channel Tunnel Rail Link – the line that of the largest single planning applications rebrand the district?” would become HS1. “We proposed a route the UK has ever seen. The work we did Konvitz argues that projects such as HS1, that approached London from the east, with back then - the masterplanning, transport, the transformation of King’s Cross Station an intermediate station at Stratford, rather environmental and infrastructure planning - and now Crossrail, show what happens than from the south as British Rail wanted,” has enabled Stratford to become an integral when authorities are able to make a vision he explains. “This route offered a better part of metropolitan London.” a reality.

A2 Magazine Issue 12 | 9 FEATURE Going places

“These projects illustrate the difference involved and the need to balance © Daniel Clements between aspiration and realisation,” expenditure. “Crossrail has been something he says. “There are lots of wonderful like 50 years in the making, and projects masterplans produced; the trick is realising can typically take decades from conception the masterplan. Creating transport to completion,” says Konvitz. “This makes infrastructure that brings additional benefits it challenging because politicians tend for a city means thinking beyond the to think in shorter electoral spans, so it’s confines of that project – as Arup’s team hard to secure long-term financing, and it’s did for HS1.” difficult to shape a project to serve the city Of course it’s not just about rail. Joined- of the future.” up thinking is also vital when it comes to “We try to model the costs and benefits connecting domestic transport infrastructure of projects. But no model can predict the with international air links. Heathrow future, and it’s incredibly difficult to model Airport serves 29 of the top 30 world cities a complex system like a city. We talk about ranked by GDP, bringing business both in evidence-based policy when in fact it’s and out of the city. Access to the airport is a often more a case of finding policy-based major focus for its management. evidence to justify a decision. So in my “Excellent surface access demands an view, using modelling for decision-making integrated approach,” says BAA’s Surface isn’t a replacement for a strong vision.” Access Director, Allan Gregory. “Road, Konvitz highlights the Paris Rive Raising the bar rail and aviation need to join together to Gauche development as an example of HS1 set the gold standard for transport where a strong vision has paid off. A infrastructure in the UK, and Arup’s work develop strategies and create projects that in developing the route for a link between will benefit passengers. If we’re really neighbourhood on the left bank of the city’s London and the Channel Tunnel paved the going to get more for less, then transport 13th arrondissement, Paris Rive Gauche way for the bid that won London the 2012 has to be integrated.” is an inner city, mixed-use, high-density Olympic and Paralympic Games. Without it, Gregory points to the Heathrow Express development with a distinctly Parisian feel. the Olympic site at Stratford and its associated as an example of excellent, integrated The brand new neighbourhood was built regeneration would not have occurred. surface access. A rail line designed around on top of old railway tracks, overcoming Arup’s involvement with HS1 dates back to aviation passengers, the Heathrow Express the problems of disconnection that they 1989. The ‘Arup Alignment’ – approaching provides a direct link from Paddington previously caused. Crucially, says Konvitz, London from the east via Stratford – connected with the Europe-wide high-speed Station to the airport, covering 15 miles in transport infrastructure was built in from rail network and helped to regenerate areas just 15 minutes. the beginning. The Metro and RER of north Kent and east London. Against the Arup Director, Peter Gist, agrees with the connections were essential to the success odds, the UK Government adopted this private need for this sort of approach. “If we want of the 130-hectare development which now sector-initiated alignment for the Channel to maintain London’s position as a global houses 15,000 residents, 30,000 students, Tunnel Rail Link in October 1991. business hub, we need to be thinking about professors and researchers as well as Arup’s team, led by Mark Bostock, needed an integrated transport policy for the UK as creating 60,000 jobs. both vision and conviction to gather the a whole,” he says. It’s crucial that visions like this are given political support required to realise their “The Government has started the a chance to become reality in London, says ambitious plans.“It was a huge political battle but also a huge policy battle,” says Sir Peter consultation process which will lead Konvitz. “A strong vision can go a long way Hall, Bartlett Professor of Urban Regeneration to a new aviation white paper for the to overcoming the institutional inertia large and Planning, University College London. UK. If this is going to deliver the right projects face,” he says. “But we need to bring “And it was won on the basis of the evidence results, it must address airport and air design into the planning process. Upfront that this alternative line would deliver massive services development as part of an investment in better design and planning regeneration benefits.” integrated transport policy. Although the is always worthwhile. Local and national Lord Heseltine, who was Secretary of State first consultation paper has not discussed authorities need the strength, capability and for the Environment between 1990 and 1992 the details of airport development capacity to use projects to help them achieve was an early supporter. “It seemed to me that Arup’s proposal had the great benefit yet, including the issue of hub airport broader and longer-term goals.” of adding regeneration in the East End of development, there are encouraging signs And Allan Gregory agrees. “Economic London to the transportation connections with that this approach is emerging.” growth and connectivity go together,” the Continent,” explains Heseltine. “I’ve no Konvitz argues that if future he says. “Our research shows that, after doubt that it played a part in opening up great infrastructure for London is to spark destinations available from an airport, the opportunities.” successful urban demand, local authorities business community values surface access “The initiative that Arup took to secure the need to be empowered to make big most highly. Like other passengers, they right line for HS1 demonstrates just how decisions. “They need to create the plazas want a direct, seamless connection to their important integrated transport planning can and spectacular entrances that we’ve come airport. With excellent surface access we can be,” adds Bostock. “With the conclusion of the extraordinarily successful Olympic and to cherish in many of London’s listed support London as a leading global city.” Paralympic Games, London has resolutely transport interchanges,” he says. “They moved east. A vision nearly a quarter of a need to be open to challenging the initial century in the making has enabled a neglected brief and they need to be supported to think 1 GLA Mayor’s Transport Strategy, 2010 area of east London to grow and thrive. in an integrated and holistic way.” 2 BAA Airports Ltd website: www.heathrowairport.com, 2012 Stratford is now firmly on the map.” This is made difficult by the timescales 3 Newham Council website: www.newham.gov.uk, 2012

10 | A2 Magazine Issue 12 Smarter healthcare estates FEATURE Smarter healthcare estates Can your estate enable improved financial performance and optimal patient outcomes?

Today, healthcare providers in the UK are under increasing pressure to cut costs while meeting the changing needs of patients. In cities like London, many also face the problems that come with operating estates of tired buildings on constrained sites. “The prognosis doesn’t have to be poor if providers get smart about their estates and think strategically,” says Arup’s Healthcare Business Leader, Stephen Pollard.

A2 Magazine Issue 12 | 11 FEATURE Smarter healthcare estates

Old, tired buildings causing difficulties for your estate strategy?

Need to quickly identify your carbon footprint? Do your buildings Unsure how to suit the new clinical tackle your estate’s models you want to inefficiencies? deliver?

“Through their estates strategy, healthcare This, says Pollard, is where the a reception area to improve the flow of service providers can create more suitable opportunity to think strategically lies. “If patients or materials through a building. On buildings, cut costs and reduce carbon ever there was a time for an estates director a larger scale, it could mean rationalising emissions whilst mitigating risk.” who knows how to engage with senior an estate, selling buildings and using the Pollard outlines the challenges now leadership to understand the business plan capital to seed future reinvestment.” facing providers. “Service reforms mean and drive changes in the estate that support “The challenge is combining a sound healthcare providers need to deliver more the plan, this is it,” he says. technical understanding of your existing services nearer to their patients as they Pollard argues that the role of the estates estate and how much it might cost to treat the long-term conditions of the ageing director has to change. “Historically, an change it, with a clear business model for population,” he explains. estates director has been someone who your services. Do we need an outreach “They need to do this with less money kept things working and complied with building in the local town centre as a as the NHS faces an unprecedented standards and codes while dealing with an priority or should we open the maternity flatlining of funds. So in response, large ever-dwindling budget and a maintenance wing we need on the main site? You’ve got hospitals are getting larger and more backlog,” he says. to be able to answer questions like this.” specialist and smaller services are offering “Today, what’s needed is someone who Answering these questions demands more generalised care to patients in the can also help the executive team deliver financial, clinical, programme management, community.” capital programmes. These programmes can property valuation, engineering and “The problem is that if you’re a chief make a hospital more efficient, deliver care planning expertise – all in a short space of executive of a healthcare provider, you differently, make the organisation a great time. It’s this range of expertise that Pollard might have inherited a mixed estate – place to work and provide a welcoming and his team at Arup bring to clients, and maybe one PFI building, another from the environment for patients.” it’s this expertise that has helped University 1980s, another from the 1960s and perhaps “Some improvements to the estate might College London Hospital NHS Foundation a Victorian building as well. That estate be relatively simple changes in response Trust (UCLH) through the transformation may not suit the services you now need to to new healthcare pathways,” Pollard of its estate. provide.” explains. “For example, you might relocate “Trevor Payne, UCLH Estates Director,

12 | A2 Magazine Issue 12 Smarter healthcare estates FEATURE

Old, tired buildings causing difficulties for your estate strategy?

Need to quickly identify your carbon footprint? Do your buildings Unsure how to suit the new clinical tackle your estate’s models you want to inefficiencies? deliver?

has done a fantastic job rationalising their carbon emissions and a more efficient estate something that every provider will be estate. From my desk I can see several can help with that,” says Pollard. able to do. Providers that excel at it may buildings they’ve been able to sell-off to “But sustainability is also about a smarter use their expertise as an asset, generating put the hospital into a new PFI building. way of thinking. Looking at the resource income by hosting other providers.” The planning process needed to achieve this efficiency in your estate enables you to see “The possibilities are exciting but at was very difficult but UCLH will now reap how you can improve processes so they’re a more basic level, I think a strate gic the benefits it brings.” not only better for the environment but also approach to estates will give providers Rationalising its estate has also enabled better for patients and more cost-effective.” a genuine understanding of the value of UCLH to build a brand new cancer centre. Pollard points to measures such as their estate,” Pollard continues. “They’ll Opened in April 2012, the University sharing Combined Heat and Power (CHP) know how buildings contribute to financial College Hospital Macmillan Cancer Centre networks or entering into a contract with performance, clinical outcomes, patient is a state-of-the art building that puts an Energy Service Company (ESCo) to experience and sustainability.” patients’ needs at its heart. reduce the risk of supplying renewable “Rationalising its estate paved the way energy. “These are the kind of solutions that for UCLH to build a centre that makes healthcare providers are using but there’s How to create a smarter use of smarter design to create a fantastic still scope do to more,” he says. healthcare estate environment for patients,” says Pollard. “It So what will future smart healthcare 1. Understand your existing estate – how are considers every last detail. For example, by estates look like? “You might see more buildings performing? streamlining their processes, they ensure that vertical integration of services, or you 2. Fix basic problems such as compliance with patients spend less time waiting – and so the might see a provider develop estates regulations centre doesn’t need many waiting rooms.” expertise and use this to host other 3. Plan capital projects that support your As well as transforming patient care, providers within their campus,” says business plan Pollard points out that smarter estates bring Pollard. 4. Design new buildings around the needs of other benefits too. “Within the NHS there’s “Taking on the role of a specialist your patients a financial incentive for providers to reduce property developer in this way isn’t

A2 Magazine Issue 12 | 13 FEATURE Data for all

Data for all Smart cities: who is getting it right and where?

Large ICT firms often tell us that to the Mayor on Sustainability in Rio, ‘smart cities’ are the future. By explains: “Sometimes we don’t even know collecting information about our what it can do for us. We have people out there on the ground, working on their issue city systems – our energy grids and such as transport or security, but they aren’t traffic networks – we will be able used to looking at the data to do something to manage them better and deliver a different.”1 better service by making them more Some cities are starting to make use of robust and energy efficient. But this available data by giving access to the what does this mean for investment public. The hope is that small companies decision-makers and local business? and creative individuals will be able to utilise it to create innovative products and Smart information: Within two weeks of its And can smarter cities really have an services for residents. The formation of launch in 2011, the London Bus Checker app impact on people’s everyday lives? the London Datastore, with an investment went to the top of the UK travel app charts of under £15k, gave developers access and has largely remained there. It covers A ‘smart city’ is one that collects and to ready-to-use datasets that have been journeys from all 20,000 bus stops in the leverages its data to meet its strategic cleaned up and meta-tagged. The result has capital. In June, we saw the launch of UK Bus Checker, providing real-time and scheduled objectives. Take Rio, for example. One of been the creation of many new apps for bus information for nearly 300,000 bus stops the most advanced city operations centres Londoners, including the Tube Deluxe, a around the UK. The app will be the first ever has just opened in the Brazilian city to guide to the London Underground transport mobile app to include street-level bus route help deal with the annual fatalities caused system that has 50,000 active daily users map information for the UK’s 17,851 bus by flooding and landslides. The high tech and 350,000 downloads.2 routes. www.buschecker.com situation room is designed to support the New York has taken a similar approach, city in managing its services; combining creating a ‘Big Apps’ competition that better weather prediction with emergency challenges its inhabitants to create value for service data to support its response to the city by using data differently. One of the natural disasters. more innovative entries, 596 Acres, uses data This data is collected to deal with a about the city’s publicly-owned vacant lots specific issue, yet it’s becoming more and to encourage people to turn them into usable 1 Arup, The Climate Group, Accenture and Horizon, University more apparent that such information may public spaces. Through the app, a lot that had of Nottingham Information Marketplaces report, 2011 have a value beyond aiding operational been vacant for two decades was transformed 2 Malcolm Barclay website, www.mbarclay.net, 2012 efficiency to exploit – if it’s used in the into a public garden that provides an open 3 596 Acres website: www.596acres.org, 2012 right way. Rodrigo Rosa, Special Advisor space for the community.3 Schemes like these 4 Technology Strategy Board press release, 2012

14 | A2 Magazine Issue 12 Data for all FEATURE

not only maximise local assets but support working closely with city leaders, we can Smart mobility: Business travellers can now use on-demand Personal Rapid Transit (PRT) public ownership of the area. start to devise strategic investment priority ‘pods’ at Heathrow Terminal 5. The futuristic- Back in the UK, the Technology Strategy plans that can deliver real value to cities in looking vehicles travel on their own guideway, Board (TSB) estimates that by 2030 the short and longer term. removing the need for queuing and buses. Pod there will be a £200bn global market for Tom Steinberg, Director of MySociety, system developer, Ultra Global PRT, and its integrated city systems. They have set up a social enterprise that specialises in civic promoter, BAA, are hoping others will adopt the Future Cities Catapult, forming part technologies claims: “The leaderships of the system. “It is now up to the creativity of designers to find applications,” says Austin of the TSB’s £200m-plus programme cities need to understand that the process of Smith, Associate Director at Arup. “In the right to establish and oversee a network of becoming digital is not something that can context, PRT could provide significant personal, technology and innovation centres in the be an outsourced task. It’s about managing environmental and commercial benefits over UK. The investment will enable the UK to city systems in our own self-image.” other more conventional forms of transit. PRT position itself as a world leader in ‘smart Cities face tremendous challenges could open up a whole raft of new opportunities, city’ solutions which can be marketed to the in the coming years: climate change, enabling fresh approaches to land-use planning rest of the world. population growth, demographic change, and personal mobility.” www.ultraglobalprt.com “Both future cities and transport systems urbanisation and resource depletion. While will be incredibly important areas of growth financial constraints continue to dictate city in the next 10-15 years,” says Iain Gray, strategies, collaboration and cross-sector Chief Executive of the TSB. “The market engagement is key. opportunity for effective transport systems “No single party holds the full set of is already valued at over £190bn per year. tools to make informed, appropriate and Smart democracy: Social enterprise, The proposed Catapult centres in each of innovative decisions that can address our mySociety, builds open source websites which these areas will help UK businesses gain an contemporary local and global issues,” says benefit the civic and community aspects of important share of these markets through Volker Buscher, Director at Arup. “But people’s lives. For example, ‘TheyWorkForYou. more rapid commercialisation of new if we encourage sensitive and informed com’ allows the public to easily view what ideas.”4 dialogue between city leaders, smart their MP has been doing in Parliament, whilst But getting the most out of the data in city experts and the local community ‘WriteToThem.com’ allows people to contact our cities requires expertise far beyond the which translates into action, I see a great their local representative. “We live at a moment where many of the most important politicians technical systems offered up by technology opportunity for cities to transform into in our country and others overseas are actually companies. It requires us to bring together thriving, healthy and happy places that are eager to stand up and say that open data is an understanding of city planning, globally competitive.” an important priority for them, and for their economic development, sociology and And Tom Steinberg agrees: “Cities need nations,” says Tom Steinberg, Director of sustainability, as well as sound engineering to realise that they don’t just have websites mySociety. www.mysociety.org practice. By combining this knowledge and – they ARE websites.”

A2 Magazine Issue 12 | 15 FEATURE Self-funding the future Self-funding the future London is largely dependent on national budgets to fund developments to its infrastructure but all that could change – and should, argue Arup’s Alexander Jan and Ben Berman.

16 | A2 Magazine Issue 12 Self-funding the future FEATURE

Over the last few years, London’s economy has taken a number of blows. With its high dependence on financial services, the city has had a torrid time. But look closely at the latest statistics – and at the city’s skyline – and you will see signs of life. London may be turning a corner.

It is too early to gauge the lasting effects of the Olympics but in 2013, economic growth in the capital is projected to reach 2.5%. The Corporation of London and Oxford Economics project real GDP growth of 4% by 2015. Once again, London will be leading the recovery for the UK economy. How is this possible? Firstly, London may have escaped the worst of central government cuts. The capital’s lower dependence on the public sector has meant that reductions have had a relatively modest impact on employment in the capital. Other parts of the UK have been more exposed, precisely because they have more public sector activity to lose. Secondly, London’s exposure to financial services has been offset by the strength of some of its other sectors. Business services, tourism, restaurants, the arts and entertainment have demonstrated their resilience. The City of London Economic Development Office estimates that the capital will add some 550,000 jobs by 2020, concentrated in professional services but distributed across the wider service economy.

Population-employment index for London (2001 = 100)

130 120 110 100 90 80 1971 1981 1991 2001 2011 2021 Population Employment Data source: Greater London Authority (GLA) Economics, 2012

A2 Magazine Issue 12 | 17 FEATURE Self-funding the future

London’s contribution to UK public finances (nominal) £27bn per annum. and Northern Line extension to Nine Elms, At present, financial self- a major development site just south of the 130 sufficiency is not politically river, wait in the wings unfunded. High 120 realistic. The taxes and charges Speed Two will also require scarce public 110 that Londoners and businesses resources. As growth returns to London and pay are largely taken by central the South East, roads, railways and the Tube 100 government. VAT, fuel duty, risk being ever more congested, struggling 90 air passenger duty, income tax, to play their part in supporting employment.

£ Billion 80 corporation tax, the lion’s share An ‘alphabet soup’ of funding policies is of business rates (for now) - all on offer to help to fund capacity expansion. 70 these drop into general taxation. The Government has already announced 60 Some 50% of the GLA’s budget that local authorities should have borrowing 50 comes from government grants, powers linked to future growth, introducing compared to just nine percent the Community Infrastructure Levy (CIL) 40 in New York. When it comes to and Tax Increment Financing (TIF) policies taxes, England remains one of in the past two years. Then there are the 2003/42004/52005/62006/72007/82008/92009/102010/112011/12 2012/13E2013/14E2014/15E2015/16E the most centralised countries in ‘City Deals’. Average revenue (£bn) Expenditure (£bn) the western hemisphere. Existing legislation stipulates that Source: City of London Economic Development Office; Oxford Economics, 2012 However, changes are afoot. local authorities may only borrow within The Coalition is progressing “prudential” rules. Historically, local The economy is not the only thing that’s reforms to allow local authorities to retain authorities have been unable to retain growing. Recent estimates from Greater income associated with, for example, business rates and cannot borrow against London Authority (GLA) Economics new developments. A reform of business them. TIF and other such policies open the signal that the population will continue rates is on its way that could dramatically system, permitting additional leverage for to increase. In the 1990s, when many UK reconnect councils with businesses located local infrastructure based on the anticipated cities shrank, London grew by nearly 5%, in their areas. Transport for London, the increase in business rate tax receipts with the growth driven by a high birth body that is responsible for all public incurred as a result of development. Such rate and migration. In the latest census for transport in the capital, has been allowed to funding mechanisms are likely to contribute 2011, London’s population increased to engage in “prudential” borrowing against a reasonable share to major projects’ 8.17 million. It could exceed nine million future farebox income. development costs. by 2020. That would be the city’s largest But are these changes sufficient? Take London’s major development projects population for over 200 years and more the Underground. Next year will be its already rely on local funding. Arup than 19% up on 2001. 150th birthday. It has been carrying over analysis shows that London is contributing For decision-makers, population increase 1.1 billion passengers annually and is only some 60% of the £15bn total project cost on this scale raises big challenges. perhaps half-way through a rebuild and for Crossrail. Non-domestic occupants There will be increased pressure on expansion. Crossrail’s opening in 2018/19 are paying a levy of 2% per annum on transport, housing, education and other will add some 10% capacity to the London properties with a rateable value in excess of public services. Infrastructure is subject rail network. Thameslink is in delivery but £55,000. Fare yields are being used to back to increasing strain. Concentrations these increases could be largely used up borrowing. Alternative taxation policies (in of economic under-performance and by 2030. Much of the suburban railway England) such as ‘New Development Deals’ deprivation generally persist, regardless operates at peak time capacity, with little and ‘Earn Back’ retain the local focus of of growth. London could become a less further opportunity for expansion. With big funding and permit authorities to capitalise attractive and competitive city. Evidence portions of London’s growth anticipated directly on incremental business growth. from the 1970s and ‘80s suggests that to be in the suburbs, pressure on the road TIF could work especially well as a without investment to replace and network will rise. means of financing transport infrastructure enhance its fabric and to better connect Significant projects in the Mayor’s in London. Take the proposed Northern its inhabitants, London will struggle. That Transport Strategy, including “Crossrail Line Extension as an example. The project, in turn may undermine economic growth 2” (previously the Chelsea-Hackney Line) adding a branch to a line of the London and the economic position of the UK economy as a whole. A case for investment is evident. But who should pay for improvements? Left to its own devices, London could pay its own way. According to research for the Corporation of London, between 2003/04 and 2010/11, the capital made a net cumulative contribution of around £80bn to public finances. London’s tax payments are projected to increase by some £38bn per annum in the coming years, whilst public expenditure is set to increase by only £8bn. By 2015/16, London’s net contribution is forecast to return to a record

18 | A2 Magazine Issue 12 Self-funding the future FEATURE

Underground system in its southern reach, contribution, the annual increment in tax Private finance would become easier to tap. will help regenerate a significant portion of receipts would be some £34m. New infrastructure such as the extension London and generate ‘windfall’ gains for Back-of-the-envelope calculations show of the Underground to Nine Elms and Battersea. Wandsworth, the local authority that TIF could help to fund a good portion Crossrail 2 could be accelerated. in which much of Battersea is located, of a Northern Line extension. Analysis by Inevitably there will be risks and contributed some £86m of non-domestic Arup and the London School of Economics challenges to this process. Important tax receipts to the national pool in 2010/11. suggests that future business rate receipts questions over the impact on the rest of Other changes could permit the authority could increase by £30m annually. The GLA the country will need to be addressed, not to retain much of this and borrow against it and others have estimated that the Nine Elms least the North-South divide. But if the going forward. How much might growth in extension could cost some £500m to £700m. economic crisis has taught us anything, Battersea’s business rate receipts provide? Assuming 5% capital costs over 20 years, it is that policy makers should maximise Other councils and areas under the total amount payable would translate opportunities for sustainable economic development provide some indication of tax to annual payments of between £40m and growth, from wherever they come. London potential. The Shard, a gleaming mixed-use £60m. Extending the payment period to 30 would be more capable of accommodating tower in Southwark which is the European years would reduce annual payments by 20 a burgeoning population and employment. Union’s tallest building, could generate as percent to between £32m and £48m. Growth It would be in a strong position to help much as £15m per annum in business rates. in future receipts from Wandsworth alone meet the UK’s economic challenges. Further to the west in Battersea, higher might provide more than 60% of the annual The Government has offered ‘devo-max’ densities will grow the area’s tax base. development costs for the line. to Scotland, a way of giving it a great deal Central London’s councils provide some All these changes are pulling in the right of autonomy without full independence. indication of growth potential. Westminster direction. But lasting, radical reform needs Why not treat London in the same way? contributed some £1.2bn in business to be pursued. There needs to be a further Alexander Jan and Ben Berman are both in rates in 2010/11. Camden, which has a handing back of power from Whitehall Arup’s transaction advice team. Alex is Head of smaller share of the city centre, provided to city halls. This should include making Transport and Ben is a senior consultant. a more modest £359m, reflecting the fact local government much more dependent that it covers less of central London. If on its own tax base for infrastructure Wandsworth, which is more suburban, development. There is a pressing case for were to generate even a third of Camden’s lasting, stable investment vehicles. Sources of funds for councils could include a share London’s major development of sales, payroll, aviation and vehicle taxes. A virtuous circle would be created projects already rely on local of authorities being financially incentivised funding. Arup analysis shows to nurture private sector economic and that London is contributing employment growth whilst improving accountability to voters and business. some 60% of the £15bn total project cost for Crossrail.

A2 Magazine Issue 12 | 19 feature De-carbonising London’s energy supply

“The time for trials and experiments is over – we are putting in place large scale programmes that can deliver significant CO2 reductions and billions of pounds of energy savings.” Boris Johnson, Mayor of London1

CASE STUDY: London Borough of Brent One of the boroughs that has already benefitted from the UK spend on Decentralised Energy for London programme is the London Borough of Brent. heat across the economy Its South Kilburn regeneration area is an attractive site for decentralised energy because it is intended for a mix of this year billion uses including 2,400 homes which will be built over the next £33 11 years. This means that the heat demand will be spread throughout the day. For example, houses and flats have the highest demand in the mornings and evenings, whereas offices and schools have their peak demand in the middle of the day. Joyce Ip, Regeneration Project Manager for the London Borough of Brent states: “The technical and commercial support we received has been invaluable. The team advised us on tender documentation, procurement routes, and undertook technical and financial modelling to assess the viability of our project. The Decentralised Energy for London programme has helped us to realise our decentralised energy potential and has assisted us in bringing this project to market.”

20 | A2 Magazine Issue 12 De-carbonising London’s energy supply feature

De-carbonising London’s energy supply London has a target to deliver 25% of its energy through decentralised energy sources by 2025 but what is it doing to get there and is it on track?

The Mayor of London, Boris Johnson, At a national level, the Department of Somewhat surprisingly given this recent has an ambition for the capital to become Energy and Climate Change (DECC) has surge of interest, decentralised energy is not a low carbon economy and has outlined recently renewed its focus on lower carbon new according to Paula Kirk, an associate a number of commitments designed to heat, stating that: “Heat is the single biggest in Arup’s energy strategy team: “There achieve major reductions in London’s reason we use energy in our society. We use are a number of district heating networks carbon emissions.1 One of the most more energy for heating than for transport dating back to the 1950s, including the use ambitious commitments focuses on or the generation of electricity. This year of waste heat from Battersea Power Station London’s use of decentralised energy: the UK will spend around £33 billion on to supply housing estates across the Thames the generation of energy or heat close heat across our economy.”3 in Pimlico. In addition, Scandinavian to the point of use which is regarded cities have been reliant on district heating as a sustainable, secure and cost-effective systems since the 1970s.” approach to generating low to zero carbon energy.2

Serial no KW rating Gas Dry weight

1 GLA website: www.london.gov.uk, 2012 2 GLA website: www.london.gov.uk, 2012 3 DECC website: www.decc.gov.uk, 2012

A2 Magazine Issue 12 | 21 feature De-carbonising London’s energy supply

“The great thing about DENet is that it’s quick, simple to use and allows local authorities to take direct control of the assessment process” says Kirk

This is all good news but is the capital likely to meet its decentralised energy target by 2025? Judging by how far it has come in a relatively short space of time, Kirk believes that it will. “London has been on a long journey over the past six years: from identifying the potential for decentralised The Heat Map outlines supply and energy using heat maps; to capacity demand to identify where Combined building through providing training, support Heat and Power (CHP) and district and advice to local authorities; to delivery heating schemes may be feasible. Once and actually putting pipes in the ground. decentralised energy opportunities have We’re really beginning to get some traction been identified, more detailed technical and and see real results.” financial feasibility studies can be carried a number of This hasn’t happened by accident. It out. “In London, having a common map district heating has been orchestrated by the Greater has helped to join everything together networks date London Authority (GLA) which has set the across local boundaries so that a large heat back to the 1950s decentralised energy agenda for the capital demand in one borough can easily and put in place appropriate funding and be linked to a source in a neighbouring support mechanisms for the 33 London area,” explains Kirk. boroughs. What is particularly encouraging A number of boroughs were quick to However, London’s renewed commitment is that the decentralised energy targets have embrace this new tool and move it on to this form of energy generation and survived a change of political leadership to the next level. For example, having the progress it has made in recent years – having been set by Ken Livingstone but worked with the London Borough of mean that it is considered to be leading then reaffirmed by Boris Johnson. Haringey right from the beginning of the way in the UK and there is increasing Planning for decentralised energy DEMaP, Arup was quickly commissioned momentum nationally. “DECC is looking infrastructure in London began in earnest by them, with funding from DECC’s to London and the work that has already with the London Climate Change Action Local Carbon Frameworks programme, to been carried out to help shape policies Plan, published in early 2007. The produce a pre-feasibility tool. Named the around the National Heat Strategy,” Decentralised Energy Master Planning Decentralised Energy Network Assessment explains Kirk. Launched in March 2012, (DEMaP) programme which ran from Toolkit (DENet), the tool was designed to the strategy describes how the heat 2008 to 2010, with significant consultancy help local authorities and other stakeholders distribution system will need to develop support from Arup, turned targets into a determine which decentralised energy over time with stakeholder consultation delivery roadmap. This produced significant opportunity areas offer the greatest potential expected in the next 12 months to enabling research, such as the London Heat to curb emissions and help local residents determine specific policies.4 Map, which is still being used today.5 and businesses reduce their energy costs.

4 DECC website: www.decc.gov.uk, 2012 5 London Heat Map website: www.londonheatmap.org.uk, 2012 6 EIB website: www.eib.org, 2012 7 GLA website: www.london.gov.uk, 2012

22 | A2 Magazine Issue 12 De-carbonising London’s energy supply feature

Following a number of similar By 2025, London queries from boroughs regarding the aims to deliver 25% technical design of district networks, the of its energy through Although the London Heat Map and Decentralised Energy for London team decentralised energy DENet were and are incredibly useful and is now seeking to establish standardised % sources have expedited a number of decentralised guidance for the delivery of projects 25 energy projects, the GLA was keenly and for their operational phase.7 This aware that technical know-how and access will take the form of a London District to funding were two major hurdles to Energy Manual for developers, network “If the decentralised energy quick implementation. As a consequence, designers and energy producers and “is community can raise it took the next logical step and initiated a designed to improve the efficient delivery programme to provide London boroughs of decentralised energy schemes through a awareness of London’s and other project sponsors with technical, London-wide network,” according to Kirk. success to date, both within financial and commercial assistance to Although this framework and the support develop and bring decentralised energy being put in place to deliver it are still the capital and beyond, we projects to market. Decentralised Energy developing, it seems that the future for should be able to meet the for London was set up in 2011 with €3.3m decentralised energy in London looks 2025 target and make a funding, 90% of which was secured from bright. There are now four dedicated the European Investment Bank’s ELENA decentralised energy officers in London significant contribution to facility.6 It has already supported 29 (two in Islington and one each in Haringey achieving Britain’s national decentralised energy projects and aims and Croydon) and the boroughs are to facilitate over £95m of projects before beginning to really drive implementation carbon reduction targets.” summer 2014. on the ground. says Kirk.

A2 Magazine Issue 12 | 23 FEATURE Climate control: preserving the world’s heritage

Climate control: preserving the world’s heritage

24 | A2 Magazine Issue 12 Climate control: preserving the world’s heritage FEATURE

As the world’s largest of different categories of object, which have the worst effect. Humidity and have widely different requirements and temperature are closely linked. museum of decorative may have been exposed to very different Lerpiniere explains that: “The system environmental conditions in the past.”2 works to maintain stable relative humidity arts, the V&A is leading As the world’s largest museum of levels in the range of 30% to 70% using decorative arts, the V&A is leading the ventilation and heating only. Ventilation the way in conserving way in adopting these policies. In 2001, is controlled on moisture content so that it priceless artefacts with a it launched its FuturePlan to transform only operates when it is helping the internal the Museum through new galleries and conditions. For example, if the gallery is passive control strategy beautiful redisplays of its collections.3 dry but the external air is dryer, then the The first 10 year phase of FuturePlan cost system won’t run.” that could provide £120 million and saw around 70% of the Further energy savings are made as the Museum’s gallery space redisplayed. system operates for a reduced amount of up to 30% energy Phase 1 was completed with the time compared to a traditional system. savings compared with opening of the acclaimed Medieval & This is balanced against requirements for Renaissance Galleries which use a passive maintaining indoor air quality. It was found traditional approaches. control strategy that could provide up that the system purges enough air when it to 30% energy savings compared with is operating that air quality is maintained London has a rich heritage of over 240 traditional approaches. By allowing the during the periods when it doesn’t run. museums. Of paramount importance to galleries to operate within wider humidity Curators are rightly concerned that their these bodies is the way in which they and temperature ranges than standard, precious objects should not suffer stress or conserve the treasures they hold. This is not conditions are controlled without the need damage. “Modelling using thermal analysis only vital for their permanent collections for cooling or humidification. The operating software played a big part in persuading but also their temporary exhibitions which ranges were set from an understanding the Museum that we should do this,” generate a significant amount of revenue of the needs of the collection; individual says Lerpiniere. “One of the things that and are often made-up of artworks on loan objects with more particular requirements was really difficult to model and predict from galleries and owners across the world. are displayed in cases that provide a buffer was how quickly the humidity would Unless a museum can guarantee adherence against the environmental fluctuations. The change – the fluctuations over a 24-hour to international regulations about maintaining system is fully automated and last summer period.” He anticipated that the building the right temperature (70°F or 21°C) and conditions were within the desired control would behave better than the theoretical ‘relative humidity’ (50%), it is not seen as bands for 99.5% of the time. Light is also calculations showed and this has proved to suitable to borrow great art and artefacts.1 controlled to differing degrees for different be correct. “The fabric of the buildings has However, over the years this ‘one size fits objects, again based on the particular needs a dampening effect,” he says. all’ requirement has resulted in spiraling of the collection. energy consumption and costs. Consequently, Andrew Lerpiniere, Associate Director there have been calls to take a more tailored, at Arup, led the team working with the less energy-intensive approach. Museum and states that: “The challenges Further adoption In 2009, the National Museum Directors’ addressed here are an industry-wide This new approach to conservation has been so successful that the Museum is adopting a Conference (NMDC), which represents issue so the Medieval & Renaissance similar approach for the new Europe Galleries, leaders of the UK’s national collections Galleries project is an important test- on which Arup is also working, with ZMMA as and major regional museums, developed a bed for museums and their movement the architect. In addition, according to Hyde: “A set of guidelines for reducing the carbon towards reduced energy use and greater lot of other museums are talking about having footprint while ensuring that standards of sustainability.” similar strategies. conservation are maintained. Their guiding Since Summer 2011, the V&A has The approach may be applicable to museums principles state: “NMDC recognises that been concentrating on the Europe 1600- that have comparable climatic conditions but museums need to approach long-term 1800 Galleries but as Steve Hyde, Head more extreme climates are likely to require a collections care in a way that does not of Estates at the V&A, outlines: “We are greater degree of intervention. For example, Arup is working on the Kolkata Museum of require excessive use of energy, whilst committed to a long-term sustainability Modern Art in India and also on the Orientalist recognising their duty of care to collections. solution not just for the objects here but for Museum in Doha, Qatar. Both have far more There is general agreement within the those in storage as well.” challenging climates than London does. international museums community that it Referring to Kolkata, Lerpiniere says: “We will is time to shift policies for environmental The importance of humidity never manage without cooling.” control, loan conditions and the guidance The Museum’s pioneering approach for given to architects and engineers, from the the Medieval & Renaissance Galleries prescription of close control of ambient is based on recognising that what affects 1 Vanessa Thorpe, The Observer, 13th November 2011 conditions throughout buildings and most objects in a detrimental manner is not 2 National Museum Directors’ Council website: exhibition galleries to a more mutual temperature but humidity, and in particular www.nationalmuseums.org.uk, 2012 understanding of the real conservation needs changes in relative humidity. Rapid changes 3 V&A website: www.vam.ac.uk, 2012

A2 Magazine Issue 12 | 25 FEATURE Climate control: preserving the world’s heritage

Caring for objects at the V&A Every object in a gallery is different and conservators have to ensure that they are kept in the best possible conditions. Here we look at a selection of objects in the V&A; at their requirements and at how those requirements are satisfied.

Boar and bear hunt tapestry This woollen tapestry was made in Arras or Tournai in France and dates from 1425-30. At 11m long, it was a challenge to find a suitable space to display it. The tapestry is sensitive to changes in humidity but it is also very prone to light damage – some dyes are typically even more light-sensitive than the pigments used in paints. The tapestry is therefore kept in a part of the Medieval and Renaissance Galleries that is at a light level of 50 Lux. “One of the things the galleries have done well is to create light levels that are low without making the space feel gloomy,” says Charlotte Hubbard, Head Sculpture Conservator at the V&A. “Although the aim is to rotate light sensitive objects, it’s not the case with this one as we don’t have a replacement.”

Tuscan cross This figure of Christ was made out of poplar wood in about 1250. It was originally painted and there is also some decoration with tin leaf. It has been repainted several times over its life. Hubbard explains: “Any wooden object will respond to moisture levels in the atmosphere. It will both absorb and give up moisture. We want it in an environment that is as stable as possible.” The cross sits in the Medieval & Renaissance Galleries. “With the Arup system we are aiming to get as little fluctuation as possible,” says Hubbard. The object has been on open display ever since it came to the museum, and will continue to be. The conservators have determined Ardabil carpet that the light levels should be below 250 Made in Iran in about 1539, this magnificent – and Lux – a comfortable but not bright level enormous at 10.51 by 5.34m – silk and wool carpet of light. This was worked out on the basis is unique in its size and splendour. It forms the that displaying the object at this level for 25 centerpiece of the Jameel gallery and, because it is years would not cause any damage to the so special, needs to be on display all the time. There painted surface. are no ‘alternatives’ with which it can be rotated on display. Instead, the museum has taken an approach which limits the amount of light that strikes it, by illuminating it at 50 Lux for 10 minutes out of every 30 during opening hours, and keeping it in near-dark the rest of the time. It sits on the floor in a huge glass box which helps protect it from changes in relative humidity, with a polyester felt below it that won’t restrict the movement of fibres if any changes do occur. The case, which is of non-reflective glass, also helps to protect the carpet from dust.

26 | A2 Magazine Issue 12 What are your thoughts on the issues facing us all in creating a better world? Join the discussion on ‘Thoughts’, a thought leadership blog for experts, practitioners and enthusiasts to talk about issues affecting the built environment.

arup.com/thoughts Learn. Reflect. Share. Discuss

A2 magazine is a We are keen to ensure that this For more information on any Editors publication is enjoyed by our of the topics featured in this Nicola Brogan, Rowan Neslen bi-annual publication Writer readers and provides interesting, magazine, please visit Matthew Blackbourn produced by Arup for relevant and informative articles. www.arup.com or email Designers our clients and reflects All feedback is welcome, so [email protected] Matt Cox, Charlotte Svensson, please send your comments and Ian Cooper our mission of shaping suggestions to our editorial team Published by: at [email protected]. Arup, 13 Fitzroy Street, a better world. London, W1T 4BQ. Printed by: Beacon Press using , their environmental printing technique.

Image Credits P16 Heron Tower © Hufton + Crow P16 122 Leadenhall Street © Rogers Stirk Harbour + Partners/Cityscape P19 City Hall & CTRL © Daniel Clements

A2 Magazine Issue 12 | 27 arup.com