Appendix 2 – Energy Projects Update (Jan 15) 1. BACKGROUND 1.1 In 2012/13, following the previous success of the Arbed scheme, the Welsh Government launched Arbed2, supported with ERDF monies, which is a 3 year project to provide energy efficiency measures to homes, to tackle fuel poverty and reduce emissions of greenhouse gases. 1.2 Blaenau Gwent submitted 2 schemes which most closely matched the criteria set by the Welsh Government. The Council’s bid was unsuccessful in year 1 but a scheme in Six Bells was accepted for year 2 which has now been extended into year 3 and is currently in progress. 1.3 In 2013/14 The Welsh Government made available funds to supplement ECO funding for Local Authority capital schemes to provide energy efficiency measures. Authorities were encouraged to form partnerships with RSLs and other authorities to operate schemes which would meet similar criteria to Arbed2/ERDF schemes, targeting fuel poverty and greenhouse gas emissions in hard to treat properties. 1.4 This Authority was successful in obtaining funding from Welsh Government to top up ECO contributions for a small scheme at Upper Salisbury Street/Islwyn Terrace, Tredegar to install external wall insulation and boiler exchanges. 1.5 This year officers again bid for capital funding jointly with Tai Calon Community Housing to install external wall insulation and replacement boilers to both private and social housing on Tai Calon estates. This first bid for 247 houses was unsuccessful but a revised bid for a scheme including 186 houses (of which 86 are private) was accepted in a second round of bidding. 1.6 A further two successful bids were also submitted in collaboration with neighbouring authorities for revenue funding for schemes designed to promote better use of energy in the community. The Welsh Government encouraged authorities to collaborate jointly to pool resources advising that individual bids would be unlikely to succeed due to limited resources. 1.7 In collaboration with Rhonda Cynon Taff CBC, Merthyr CBC, Monmouthshire CBC, Torfaen CBC and Cardiff City Council it is Appendix 2 Page 1 of 5 proposed to set up a team of energy advisors to engage with residents, community organisations and schools to promote more efficient use of energy by encouraging behavioural change. This scheme is headed by Rhonda Cynon Taff. 1.8 Torfaen CBC, in collaboration with ourselves, Monmouthshire and Newport have been awarded funding for a research post to examine and report on energy efficiency activity in each of the constituent authorities, identify best practice and advise on improving activities. 1.9 British Gas are promoting the installation of solar photovoltaic (PV) panels to the roofs of groups of houses at no cost to the owners and have approached Tai Calon regarding a scheme involving houses on their estates. Officers have undergone preliminary discussions with Tai Calon with a view to extending the scheme to benefit private houses on the Tai Calon estates. 1.10 All the above projects, as well as concentrating on reducing fuel poverty and greenhouse gas emissions, will benefit the community and the welsh economy as a whole by increasing local employment and training opportunities with the resultant boost to the “Welsh Pound”. 2. PRESENT POSITION 2.1 Six Bells Arbed2/ERDF project Managed by Melin Homes as scheme administrators for the Welsh Government. Funded 100% by Welsh Government and ERDF with no cost to owners. To compliment work undertaken under the Six Bells Renewal Area to Lancaster Street, Six Bells Road, Arail Street, Upper Arail Street, Griffin Street, Upper Griffin Street, Chapel Road and Alexandra Terrace, Six Bells. In the first year this involved external wall insulation to houses in Lancaster Street which had not received external wall treatment as part of a Group Repair Scheme and to replacement boilers and heating improvements to other house in the area covered. This was extended this year to include external wall insulation to houses in Arail Street and Upper Arail Street which had not received external render under previous Group Repair Schemes. Appendix 2 Page 2 of 5 The work to Lancaster Street is now completed and attracted almost 100% take up. Work to install external wall insulation to Upper Arail Street is underway and is expected to be completed early next year. Similar work to Arail Street is expected to commence shortly. 2.2 Upper Salisbury Street/Islwyn Terrace, Tredegar This scheme is funded, as stated above by ECO contributions of £66,924 supplemented by £125,086 of Welsh Government funding, a total of £192,010, including revenue costs. There is no cost to Blaenau Gwent CBC or the owners. The scheme includes external wall insulation to 17 properties and replacement gas boilers where appropriate. A large proportion of the houses are vacant and landlords are being encouraged to invest money to bring the properties back into use. The improvements achieved as a result of the scheme to the exteriors of the houses and to the general appearance of the streets, will make the properties easier to let. The scheme is project managed by United Welsh Housing Association who are also offering assistance to landlords to refurbish and re-let their empty properties. Further assistance is proposed under a Vibrant & Viable Places project to renew roofs to houses in Upper Salisbury Street. This scheme will be administered by the Regeneration Division and will compliment the work already undertaken. Work to install EWI is now complete and has greatly improved the appearance of the streets. The combined effect of the above scheme in conjunction with the other schemes operating alongside it is to improve energy efficiency, reduce fuel costs, and thereby fuel poverty, to improve the appearance of the area and to bring long term empty and derelict homes back into use. Additional benefits have been witnessed in the reduction of burglaries and anti social crime. 2.3 Arrael View Abertillery/Cae Glas Nantyglo/Rhoslan/Stocktonville, Tredegar In partnership with Tai Calon Community Housing 186 houses (including 86 private houses) on the above estates will be offered external wall insulation and, where appropriate, replacement boilers. Appendix 2 Page 3 of 5 The scheme will compliment Tai Calon’s programme of improvements to their own houses and allow private houses to receive the same insulation measures as the Tai Calon houses on the same estates. The scheme concentrates on areas with a high percentage of low income households, and difficult to treat properties where the high costs of installing the measures would be prohibitive to the majority of private owners. Additional community benefits are achieved by providing local employment and training opportunities, targeting local job centres and Tai Calon’s own recruitment pool. The contractor also subscribes to the Gwent Industry Training Board. We successfully bid for £1,536,485 from Welsh Government to top up £259,566 from Eco funding to fund the project. Tai Calon are contributing £1,063,000, making a total expenditure of £2,859,051. There is no cost to Blaenau Gwent County Borough Council. These works will commence early in the New Year for completion by the end of March. The project will be managed on site by Tai Calon but with the Council’s officers overseeing performance and ensuring compliance with the conditions of the Welsh Office grant. 2.4 Energy Advice Revenue Scheme This will build on the savings achieved by the capital works to insulate houses by encouraging residents to use energy more efficiently. The total extent and cost of the scheme is still being negotiated with the Welsh Government but no cost will fall on any of the participating authorities. It is intended that the scheme will operate for the remainder of this year and throughout the next financial year. The project will be led by RCT who already operate a successful energy advice scheme, as do “Powering up Communities First”, now part of the “Being Greener Team” at Melin Housing. The combined expertise of the above will be extended across the participating authorities and their existing models for delivery will be utilised. An important part of the scheme will be to educate schoolchildren as well as their parents and promote voluntary community and school energy champions to help disseminate advice. Appendix 2 Page 4 of 5 2.5 Research Officer Revenue Scheme Welsh Government have approved a grant of £18,778 to allow a research officer to be appointed for a period of 6 months to examine the existing energy efficiency programmes in each authority, identify and disseminate examples of best practice and report to each authority on the results of the study. This will provide valuable data when formulating future policies and, hopefully, identify a base line against which to evaluate outcomes. Again this is being funded 100% by the Welsh Government with no cost to the participating authorities. 2.6 British Gas Scheme To Install Solar PV panels British Gas and Tai Calon propose to install solar PV panels to all Tai Calon houses where the roof aspect is suitable to collect solar radiation. British Gas will pay for the installation and commissioning of the panels and provide initial tenant liaison, with the intention of recovering their costs over the years by claiming the feed in tariff paid by Government for the production of “green” energy. Tenants will gain the benefit of free electricity produced by the panels. Officers have held preliminary discussions with Tai Calon to assess the feasibility of extending the scheme to privately owned houses on the Tai Calon estates. Officers propose to enter into further talks with British Gas to discuss the details of how such a scheme would work, particularly with regard to existing roof conditions and future maintenance.