The Mayor's draft energy strategy

Report: 19
Date: 11 July 2002
By: Commissioner

Summary

The main aims and aspirations of the Mayor's draft Energy Strategy are already incorporated within the MPA Environmental Strategy and Progress Report 2002 and are recognised by the MPA as a major strand of the MPA's Environmental Strategy.

Practical implementation of the specific expectations of the Mayor's Strategy, in respect of incorporating renewable energy technology in new development and major refurbishments, cannot be identified in advance and will be subject to future individual assessments and reported separately. This report includes a draft MPA response to the Mayor’s Strategy for discussion at the meeting.

A. Recommendations

1. Members are asked to note the implications and expectations of the Mayor's draft Energy Strategy.
2. Members are invited to discuss and agree the proposed response by the MPA to the Mayor’s draft Energy Strategy as set out in Appendix 1.

B. Supporting information

1. The Mayor's draft Strategy has been submitted to the MPA as part of the consultation process with the Assembly and functional bodies. A copy of the document is available from the MPA Secretariat (020 7202 0181).

2. The Energy Section of the MPS has held discussions with the GLA and reviewed both this and previous drafts of the document and has prepared a draft response on behalf of the MPA. This is attached at Appendix 1.

3. The main points of the draft Energy Strategy related to the MPS are that the Mayor expects the GLA family to:

• lead by example and to manage all buildings in accordance with the Mayor's Energy Hierarchy, which seeks to meet essential energy needs through:
  • applying energy efficiently;
  • applying renewable energy; and
  • seeking optimal efficiency of energy supply.
• The Mayor will promote best practice in vehicle fleets owned or regulated by the GLA or Functional Bodies and will seek to influence fuel used by fleets owned by firms with which it has other contractual arrangements (Proposal 31 of the Strategy).
• The Mayor will lead London by example, working to ensure that the GLA and functional bodies fully integrate the objectives of the Energy Strategy into their activities and demonstrate best practice. (Policy 23)

4. The Mayor requests that the MPA:

• monitors and annually reports on the energy used and the carbon dioxide emissions from its operations; (Proposal 45)
• follow the GLA's lead and adopt or update environmental policies, which should include demonstrating best practice and adopting an energy management programme; (Proposal 46)
• power their head offices completely from renewable electricity by 2003 and their 'satellite' buildings completely from renewable energy by 2005; (Proposal 47)
• investigate the feasibility of employing renewable energy technology on their buildings; (Proposal 48)
• evaluate new technologies to maximise fuel efficiency and reduce exhaust emissions when replacing vehicles within their fleet. (Proposal 53)

5. The Mayor does not anticipate funding implications from Proposal 47, but as pressure is applied to use renewable energy, its availability and price will inevitably reflect market conditions. It is also the case that the current favourable rates that the MPA enjoys on its electricity contract are the result of its bulk purchasing power. There is no guarantee that one supplier will be able to supply sufficient renewable energy for the entire MPA estate.

C. Financial implications

1. In supporting the aims and aspirations of the Mayor's draft Energy Strategy the financial implications of individual contracts and development schemes will have to compete for the resources available within the overall MPA budget, unless additional funds are made available to cover the increased cost. Where no additional costs are associated with the contract or development scheme, the MPA will always endeavour to ensure that the most appropriate environmental options are adopted.

2. Any additional costs associated with the Mayor's desire to see renewable energy schemes incorporated within new building design would form part of the specific project cost and would be reported separately.

3. The existing electricity contract is due for renewal in October 2003. A renewable energy requirement for HQ buildings will be evaluated at that time and reported separately.

4. Staff resources required to demonstrate best practice and improve overall energy performance and efficiency have yet to be fully evaluated. This will be reported separately.

5. The Mayor's Energy Strategy will be fully reviewed following publication and will be reported on through the MPS before being submitted (through the Estates Sub Committee) for endorsement by MPA Finance Committee. 

D. Background papers

Mayor's Draft Energy Strategy (Assembly and Functional Bodies Consultation Draft)

E. Contact details

Report author: Alan Croney, Director of Property Services, MPS.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1: Proposed response by the MPA to the Mayor’s draft Energy Strategy

The Metropolitan Police Authority (MPA) were pleased to receive the Mayor’s Draft Energy Strategy and have welcomed the opportunity to be involved in the early stages of its development.

The MPA fully support the aims and aspirations of the strategy and do already incorporate many of the proposals within existing and developing activities. Early involvement in the strategy has also enabled the MPA to incorporate relevant sections of the strategy within its own Environmental Strategy and Progress Report 2002.

The Mayor’s request that the MPA monitor and report on energy used and the carbon dioxide emissions from its operations, and that we follow the GLA’s lead and adopt or update environmental policies (Proposals 45 & 46) form an integral part of our own Environmental Strategy. It also constitutes our renewed Making a Corporate Commitment (MACC2) campaign commitment to reduce CO2 emissions by 10% over the next three years.

The Mayor’s request that the MPA power its Head Offices from renewable energy by 2003 and all satellite buildings completely from renewable energy by 2005 (Proposal 47) also forms an integral part of our existing strategy. This initiative will however need to be evaluated at the time the energy contracts are renewed in October 2003, for whilst our existing renewable energy contracts for two buildings within the estate (Cobalt Square and Orpington PS) resulted in a small financial saving, renewable energy availability and price at the time of the contract renewal will inevitably reflect market conditions. The MPA will need to balance the financial implications of Proposal 47, at the time of contract renewal, against the other demands on the Authority’s budget.

In respect to the Mayors request that the MPA investigate the feasibility of employing renewable technology in their buildings (Proposal 48) this will be considered as an integral part of all new developments.

It is, however, the case that the MPA may have limited opportunity to deploy renewable technology within its new developments as in the vast majority of situations its application would result in additional cost that would have to be balanced against the other demands on the Authority’s budget.

With regard to the Mayor’s request to evaluate new technologies to maximise fuel efficiency and reduce exhaust emissions when replacing vehicles within their fleet (Proposal 53), this is already incorporated in our Environmental Strategy and is in continuing discussion with the GLA as part of the Mayor’s Draft Air Quality Strategy.

In general, within the budget available, the MPA will always seek to demonstrate best practice in all environmental issues, but with limited financial and manpower resources we will always need to seek a balance between the conflicting demands on the Authority.

Without additional financial and manpower resources being made available to the Authority for specific contracts or schemes supporting this strategy, there will inevitably be cases where we may find it impossible to justify adopting all the aims and aspirations of the Mayor’s Draft Environmental Strategy.

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