Energy Efficiency

Introduction

Energy efficiency has a key role to play in driving down carbon emissions associated with the operations of a business.  Furthermore, reduced energy consumption means savings in energy costs, so it's a win-win. There are many facets to energy efficiency, which for some time now has been a key plank in UK and EU climate change policy.

Ways we can help  

Detailed below are some of the ways Martineau can help a business design and implement a strategy for greater energy efficiency.

1. CRC Energy Efficiency Scheme

Martineau has released several publications on this new carbon trading scheme commencing in April 2010. These can be found here.

There is also a summary of the Scheme in the Law & Policy section of this website.

Martineau is able to advise on:

• compliance with the CRC regulations - including coverage, what organisations need to do and documentation to be completed;
• the trading of carbon allowances on the secondary market - including contract documentation and market processes;
• use of smart metering to improve league table position; and
• interaction with other schemes such as the EU ETS.

2. EU ETS

Further information on the European Union Emission Trading System (ETS) can be found in the Law & Policy section of this website.

Martineau is able to advise on:

• compliance with the EU ETS regulations, including changes when phase 3 of the scheme commences; and
• the trading of allowances (contract documentation, market processes etc.).

3. Landlord and Tenant/Green Leases

As the drive for increased energy efficiency continues, green leases are becoming more and more common. Green leases contain clauses which either encourage, require or assist the landlord and tenant to reduce the environmental impact of the building or property in question. The term encompasses both a legally binding lease as well as a non-binding memorandum of understanding. For more information, please see our recent publication on Green Leases here.

Martineau’s property team is able to:

• review leases and respective rights and obligations in relation to energy bills, energy efficiency improvements as well as how CRC obligations may be dealt with in new leases; and
• provide advice on negotiating amendments to leases to deal effectively with the CRC scheme and energy efficiency improvements.

4. Energy Purchasing

We are able to assist with the following:

• advice on the procurement of energy - including drafting and reviewing tendering and contract documentation (including term, exit arrangements, pricing and metering etc.);
• advice on green tariff purchasing including CRC implications; and
• advice on Climate Change Levy, including Climate Change Agreements.

5. On-site Generation

The incoming Feed-in Tariff Scheme, effective from 1st April 2010, will improve the financial case for installation of on-site generating plant powered from renewable sources.

We are able to provide advice on:

• planning and consents, including permitted development rights, IPC and licence exemptions;
• accreditation for green certificates for output (ROCs, LECs and REGOs);
• feed in tariffs including accreditation processes;
• connection arrangements with local distribution network owners, including site issues associated with substations and cable runs;
• procurement of equipment, including operation and maintenance;
• consultant’s appointments, warranties etc.;
• implications on site lease(s);
• sale of surplus power to grid, including drafting/reviewing power purchase agreement with energy supplier;
• fuel purchasing contracts;
• contractual arrangements for provision of metering equipment and services; and
• any bank (and grant) funding arrangements.

6. Combined Heat and Power

Combined Heat and Power (CHP) is the simultaneous generation of usable heat and power (usually electricity) in a single process. Heat which is generated during the generation of power is captured and used in a variety of ways, vastly increasing the efficiency of power generation from between 38-48% for traditional generators to over 70%.

In addition to those issues associated with on-site generation described above, we are able to provide advice on:

• the sale of heat, including drafting and reviewing heat supply agreements; and
• prospective renewable heat incentives.

7. Other Infrastructure Works

The installation of on-site facilities, whether energy efficiency equipment or on-site generating plant, as well as the laying of pipes and cables and other associated infrastructure works, is likely to entail a variety of planning issues and legal documentation.

We can advise on the following:

• planning and consents, including permitted development rights and IPC;
• the procurement of equipment, including operation and maintenance; and
• consultants' appointments and warranties.

8. Carbon Accounting and Reporting

The Climate Change Act 2008 has established a trajectory for mandatory carbon reporting in the near future.

We are able to advise upon:

• current practice (GHG protocol, Defra emissions factors etc.) and legislative changes; and
• offsetting, government guidance, contract documentation with offset providers including the purchase of verified and certified emission reductions.

9. Supply Chain Management

We are able to assist with:

• reviewing and amending supply chain contracts with a view to including “green clauses” (for example measurement and reporting of carbon emissions and obligations to reduce).

10. Employee Engagement

We are able to assist with:

• reviewing and advising on staff policies and procedures with respect to energy and carbon efficiency, including commuting and parking; and
• bespoke training packages for staff on climate change awareness, law and policy.