Local Heat and Energy Efficiency Strategies (LHEES): phase 2 pilots evaluation

2. The LHEES Phase 2 Pilots 

The first phase of LHEES pilots, which involved 12 local authorities, was completed in March 2019; these have already been evaluated^[4]. Under Phase 2 of the LHEES pilot programme, 11 local authorities around Scotland were awarded £30-60K to trial the development of an LHEES (see Figure 1). The funding was used to provide resource in the form of staff time, to procure consultancy services to carry out aspects of the work, and to conduct stakeholder engagement. The pilots ran from May 2018 to December 2019, with some extended to March 2020. 

The primary aims of the LHEES Phase 2 pilots were to test and develop methods for creating an LHEES, identify relevant sources of data (and any data gaps), and gain a fuller understanding of the resources and capabilities required to deliver an LHEES. This evaluation report will assess the pilots against these aims, specific questions include:

1. Did the pilot programme set out the aims laid out above (developing and testing methods; identifying relevant sources of data; understanding resources and capabilities)?

2. Did the development of the LHEES follow the 6 Stages laid out in the 2017 consultation?

3. Did the development of the LHEES include engagement with colleagues across the council, and wider engagement with community stakeholders?

4. Does the LHEES use the socio-economic assessment methodology developed by Carbon Trust?

• Has the socio-economic assessment been used for the designation of zones?
• How useful was the socio-economic methodology? Are there potential adjustments to be made?

5. What data was used in the development of LHEES? What gaps/ challenges remain?

6. What role did external consultants play in the development of LHEES? What further support is needed?

For the second phase of LHEES pilots, Scottish Government sought to understand the requirements for specific sectors, and requested that proposals focus on one of the following areas: 

• Energy efficiency in the "able-to-pay" (both domestic/non-domestic sectors) 
• Energy efficiency in the domestic private rented sector 
• Energy efficiency in the Small and Medium Enterprise (SME) sector (both industrial and services) 
• Energy efficiency in public sector buildings 
• Identifying opportunities to establish or support energy efficiency and low carbon heat supply chains 
• Identifying low regrets opportunities for the decarbonisation of heat supply^[5]

Local authorities were able to specify whether they would consider these sectors on a local authority-wide basis, or in specific urban, suburban and remote rural settings. Each of the 11 local authorities involved developed their own specific aims for their pilot. In contrast with the area-based approach taken to the Phase 1 pilots, the sectoral approach suggested by Scottish Government for the Phase 2 pilots sought to align with focus of the broader Energy Efficient Scotland pilots. Whilst the Phase 2 pilots were in progress, both the Scottish Government and a number of local authorities declared a Climate Emergency. This resulted in some re-focusing of the Phase 2 pilots towards a longer term, more strategic approach. A summary of the initial and updated aims and scope of each LHEES pilot is included in Table 1. 

Table 1: Summary of Phase 2 LHEES activities for each local authority.

Local Authority

Aberdeenshire

LHEES pilot initial and updated aims

• Focus on SME businesses in off-gas areas.
• Options appraisal of energy efficiency measures, energy and heat supply.
• Shortlist to a realistic set of individual project options and integrated solutions.
• Provide a cost/benefit analysis of best practice measures to refurbish these buildings to a high standard of energy efficiency with low carbon heating options.

Local Authority

Argyll and Bute 

LHEES pilot initial and updated aims

• Focus on: 1) energy efficiency in domestic private rental sector (across the whole local authority) and 2) low regrets opportunities for low carbon heat (on the Isle of Islay, Oban and Lochgilphead)
• Develop a best practice framework document incorporating all elements of LHEES, with more detail on the project focus areas

Updated aims

• Stage 1) of the pilot was not completed due to resource constraints. 
• For Stage 2) the Isle of Islay was replaced with Cambeltown because of overlap with existing projects on Islay.

Local Authority

East Lothian 

LHEES pilot initial and updated aims

• Focus on the private rented housing sector across Dunbar, Haddington and North Berwick, with a specific emphasis on tenement / flatted buildings. 
• Identify opportunities to reduce energy demand, improve energy efficiency, promote decarbonisation of supply and improve engagement. Plan measures / feasibility studies accordingly, consult and engage on these, and develop proposed delivery programme. 
• Provide formal training in relation to technical skills.

Updated aims

• Scope expanded to include private rented sector across the whole of East Lothian, rather than just targeted zoned areas.

Local Authority

Falkirk

LHEES pilot initial and updated aims

• Consider LHEES projects aimed at scoping the challenges of adopting low carbon heat and power opportunities within key parts of the council's public estate, for example developing strategic options for heat networks adjacent to industrial complexes (Grangemouth) and development of low carbon heat options for off gas grid areas. 
• Test low carbon energy opportunities within PPP/PFI High School built estate.

Local Authority

Fife

LHEES pilot initial and updated aims

• Develop a stakeholder methodlogy to engage businesses in Levenmouth to inform LHEES. 

Local Authority

Inverclyde

LHEES pilot initial and updated aims

• Local Heat and Energy Efficiency Strategy focused on improving energy efficiency and decarbonisation of the public sector estate across Inverclyde

Updated aims

• Developed dashboard tool to explore how measures in different public sector buildings would contribute to overall LHEES targets.

Local Authority

Midlothian

LHEES pilot initial and updated aims

• Focus on energy efficiency in able to pay (domestic and non-domestic) and domestic private rented sector across the whole local authority area. 
• Project will include: baseline data reporting, objectives and targeting, measures evaluation, stakeholder engagement, socio-economic analysis and an implementation plan.

Local Authority

North Lanarkshire 

LHEES pilot initial and updated aims

• Testing the socio-economic assessment methodology developed by the Scottish Government across the whole council area.

Updated aims

• Completed initial data collection on whole North Lanarkshire area. Used this to identify three intermediate zones (representative of urban, sub-urban and rural areas)
• Identified potential interventions for each type of zone
• The socio-economic analysis was then completed for the potential interventions in each of the three intermediate zones.

Local Authority

Orkney Islands

LHEES pilot initial and updated aims

• The LHEES will have an Orkney wide focus, covering industry, the public sector and domestic households.
• Bring together Orkney's Sustainable Energy and Fuel Poverty Strategies.
• Provide statistical basis to develop actions and opportunities for enhancing the production and use of renewable/low carbon energy in Orkney. 
• Identify low regrets opportunities for decarbonising heat and electricity.

Local Authority

South Lanarkshire

LHEES pilot initial and updated aims

• Focuses on energy efficiency in the domestic private rented sector (PRS) with particular focus on multi-tenure factored and tenement management scheme flatted blocks  
• Identify low regrets opportunities for the decarbonisation of heat supply within accessible rural and remote rural off-gas grid settlements. 
• Consider the particular "able to pay" features in relation to both the sectorial (PRS) and locational, rural Low and Zero Carbon (LZC) low regrets, aspects of the project. 
• Include socio-economic assessment, which will enable evaluation of the extent and nature of fuel poverty and the potential impacts and benefits of LZC options.

Updated aims

• Time and resource limitations resulted in detailed study of PRS, but less focus on off-gas settlements

Local Authority

West Lothian 

LHEES pilot initial and updated aims

• Focuses on energy efficiency in the SME sector (both industrial and services), and in public sector buildings
• Identifying opportunities to establish or support energy efficiency and low regrets opportunities for the decarbonisation of heat supply. 
• The project will investigate the options in the town of Whitburn, due to the mixture of social and private housing, publicly owned buildings as well as both publicly and privately owned industrial units. 

Updated aims

• Focused on four off-gas grid areas (Breich, Newton, Westfield, and Wilkieston), with more attentionon the domestic than non-domestic