Local Heat and Energy Efficiency Strategy (LHEES) pilot programme: synthesis evaluation

1. Introduction

This report presents findings from a synthesis evaluation of Scotland’s Local Heat and Energy Efficiency Strategy (LHEES) pilot programme. This chapter summarises the policy context and provides an overview of the pilot programme.

Policy context for LHEES

LHEES are expected to set out the long-term plan for decarbonising heat in buildings and improving their energy efficiency across an entire local authority area, to prioritise Scottish Government and UK Government delivery programmes, and both public and private investment. LHEES will be a crucial element in the delivery of national targets for energy efficiency improvements, tackling fuel poverty, and decarbonising the heat supply of Scotland’s buildings.

The concept of LHEES was introduced through two Scottish Government consultations in 2017, and Scottish Government and local authorities have been working together since then to further develop LHEES. The Heat in Buildings Strategy published in October 2021 makes clear that LHEES are fundamental to the Scottish Government’s approach to heat decarbonisation. The Strategy also sets out a detailed description of what LHEES are expected to include, and commits to publishing LHEES for all local authority areas by the end of 2023 and continuing to work with local authorities to establish LHEES on a statutory basis.

The pilot programme

The LHEES pilot programme has involved three phases of pilots, with all 32 Scottish local authorities involved in one of the phases. The figure below provides an overview of the pilot programme.

Overview of LHEES pilot programme timeline

Phase 1 pilots (Sept 17-Mar 19)

12 local authorities
Test & develop LHEES process
Evaluation report Sept 2019

Phase 2 pilots (May 18-Dec 19)

11 local authorities
Test & develop LHEES process
Focus on specific building sectors
Evaluation report Aug 2020

Phase 3 pilots (Nov 19-Mar 21)

9 local authorities
Test & develop LHEES process
Focus on high heat demand, off-gas grid
Evaluation report Oct 2021

Evaluations have been conducted for each of the three phases, the first published in 2019^[1], the second in 2020^[2], and the third in 2021^[3].

All three phases of the pilot programme sought to test and develop the LHEES development process, including consideration of data sources and gaps, and identification of the resources and capabilities required. However, there was some variation in focus over the course of the pilot programme, with phase 2 including a focus on specific building sectors and phase 3 focusing on areas of high heat demand or off-gas grid. Local authorities also had scope to tailor their approach to LHEES in response to local circumstances and needs – as a result, there was considerable variation in the 32 LHEES produced through the pilot programme.

The context to LHEES also changed during the pilot programme and has continued to develop since completion of the programme – including for example refinement of the LHEES methodology and more detailed proposals set out in the Heat in Buildings Strategy. The final ‘Next Steps’ section of this report notes where these developments specifically address some of the issues raised through the evaluation.

Overview of LHEES produced through the pilot programme

Sector focus

Phase 1 (12 LAs)

All had a broad sectoral focus, although a small number focused on geographies with a specific building stock profile. Challenges accessing data limited the extent to which pilots were able to consider non-domestic buildings.

Phase 2 (11 LAs)

Specific sectoral focus – 5 on ‘able to pay’ domestic and non-domestic, 4 on domestic PRS, 4 on SMEs, 4 on public sector. Some also focused on specific building types within these sectors. Some moved to longer-term strategic focus in response to declaration of ‘climate emergency’.

Phase 3 (9 LAs)

General focus on areas with high heat demand (potential for heat networks), areas with high proportion of buildings off the gas grid. Challenges accessing data resulted in more focus on domestic buildings. Some narrowed scope in response to the COVID-19 pandemic.

Geographic focus

Phase 1 (12 LAs)

Nearly all focused on one or more discrete locations within local authority area. Some developed bespoke areas, others using pre-defined geographies such as regeneration areas, wards, and CPP areas.

Phase 2 (11 LAs)

6 focused on one or more discrete locations, 5 considered specific sector(s) across the LA area.

Some moved to longer-term strategic focus in response to declaration of ‘climate emergency’.

Phase 3 (9 LAs)

8 focused on one or more discrete locations. 1 considered the whole LA area.

Some narrowed scope in response to the COVID-19 pandemic.

Resourcing

Phase 1 (12 LAs)

Centrally procured consultancy consortium, funding for LA staff time.

Phase 2 (11 LAs)

Local authorities responsible for procuring external support, funding for LA staff time.

Phase 3 (9 LAs)

Local authorities procured external support with SG support (LHEES framework), funding for LA staff time.

Research aims and questions

The overall aim of the study was to bring together findings from each of the three phases of the pilot programme to provide an evaluation of the LHEES pilot programme as a whole, and to identify learning points for the future roll-out of LHEES. The evaluation has also drawn on outputs from each of the 32 pilots and a small number of interviews with local authority officers.

The research questions identified for the evaluation are set out below.

Research Questions

1. What have been the key benefits and outcomes for authorities?

2. What challenges have authorities faced in developing LHEES?

3. What has been effective in overcoming these challenges?

4. What challenges and gaps remain unresolved?

5. What is needed to roll out LHEES across Scotland?

Report

The remainder of this report is structured as follows:

Chapter 2 considers the main benefits and positive outcomes secured for local authorities through the LHEES pilot programme.

Chapter 3 considers the challenges encountered by local authorities across the LHEES pilot programme.

Chapter 4 outlines key considerations for the future rollout of LHEES, considering challenges which remain unresolved and evidence on the factors that have contributed to successful development of LHEES.

Chapter 5 sets out next steps for development of LHEES.

The report includes anonymised verbatim quotations drawn from the three pilot programme evaluation reports - these have been lightly edited for brevity.