Operational Net Zero in New Non-residential Buildings

gion). Policy NZ.2 Operational Net Zero in New Non-residential Buildings Where viable new-build non-residential development of 100m2 or more shall make the fullest possible contribution towards mitigating climate change (reducing carbon emissions) by meeting all of the following steps. a. The new-building shall be designed to achieve net zero operational energy use, by meeting all of the following energy performance targets: i. ≤ 15 kWh/m2/year space heat demand in schools and light industrial. ii. Total energy use intensity (EUI) targets as follows: 1. ≤52 kWh/m2/year in primary schools 2. ≤35 kWh/m2/year in unrefrigerated light industrial. If unfeasible due to the specific proposed use, then follow ‘Other’ (1.a.ii.3, below). 3. Other: Disclose total EUI in kWh/m2/year, of which the regulated-only energy uses should be ≤30 kWh/m2/year. Show what efforts have been made towards the relevant targets in the UK Net Zero Carbon Buildings Standard. 4. It will be acceptable for EUI targets to be met as a site-wide average. iii. Onsite renewable electricity annual generation kWh equal to the building’s annual total energy use. 1. It is acceptable for the renewable target to be met on a site-wide basis, including in mixed-use (see policy NZ.1 for residential). iv. Buildings shall not use fossil fuel unless in safety-critical backup power. b. To minimise the energy performance gap between design and use: i. Compliance with the above targets at application stage shall be demonstrated using an accurate energy prediction method. ii. On completion: Major schemes should update the calculations to reflect the building’s actual construction. Minor schemes should reconfirm the specifications to which they have been built. iii. Major applications (≥1000m2 floorspace) should implement an assured performance method throughout design and construction. c. If the renewable electricity provision falls short of a net zero energy balance (1.a.iii.1), the developer will offset the shortfall via a contribution to enable delivery of the equivalent renewable generation capacity elsewhere locally. This shall be priced and ring-fenced for that purpose. Offsetting is only an acceptable route where an onsite net zero energy balance is unfeasible. d. The developer is encouraged to explore energy storage or sharing systems, to allow more of the onsite generation to be used on site. Where these are incorporated, this will be recognised as a benefit with material weight. Policy Justification 6.1.5 This policy’s energy performance targets for total EUI, space heat demand and renewable energy have been demonstrated feasible in the South Warwickshire context via the accurate energy modelling evidence report of typical building types of these specific uses in this local plan area. The primary school EUI target of 52kWh/m2/year aligns with the Department for Education requirements for new schools in England. The fallback target for regulated energy use is selected on the basis of published recent third-party energy modelling evidence which covered additional building types beyond those covered in the SWLP modelling. 6.1.6 The energy modelling evidence report (cited above) identifies the construction specifications that would meet these performance targets in each building type, and the quantified cost uplift for those specifications compared to today’s basic building standards. It will be made available in the local plan evidence library. The identified cost uplifts for this policy are being fed into the plan viability assessment, which will also be part of the local plan evidence library. 6.1.7 Regarding the renewable electricity provision target: • Where it is proposed to meet the target on a site-wide basis in mixed-use, the total target should be calculated by applying the residential and non-residential targets in proportion to their respective area (see policy NZ.1 for the applicable residential target). • There is a preference for building-mounted PV , or PV mounted over other uses such as car parking, so as to make efficient use of land as per NPPF 2024 paragraphs 129-130c. The other reason PV is preferred (and assumed in the evidence modelling) is that PV today has the best balance of low visual impact, low maintenance, and generating a useful amount of electricity while being widely suitable for integration with urban areas. However, any other renewable energy generation technology can contribute towards this target where suitable for the setting and effective. • It will not be acceptable for the renewable energy target to be met primarily through standalone generation that has no connection to the proposed buildings or other on-site energy uses. Standalone equipment whose purpose will be primarily a commercial power station that sells REGO18-certified electricity to the grid will not count towards this renewable energy goal (for example a commercial solar or wind farm development that happens to be alongside an otherwise unrelated development of new buildings). However, it is acceptable, and encouraged, for the on-site renewable energy at a new building to supply any unused energy to the grid on a standard feed-in tariff at times when onsite generation exceeds onsite demand, provided that REGO certificates are not also sold. • Applicants should follow MCS guidance in calculating19 their predicted renewable energy generation. 6.1.8 Regarding the energy performance gap: • See equivalent supporting text on Policy NZ.1 for explanation of this phenomenon. • Acceptably accurate energy performance prediction methods for non-residential uses currently include Passivhaus Planning Package (PHPP) and CIBSE TM54. Applicants should be aware that CIBSE TM54 is a nationally endorsed energy use prediction method in that it is named in Building Regulations Part L 2021 as an acceptable means to fulfil Part L’s mandatory ‘energy forecasting’ requirement. Other suitably accurate methods may arise in the plan period. If the developer proposes any alternative method, the Council(s) may consider these on a case- by-case basis depending on track record evidence of the accuracy of that method at predicting actual energy performance. Building regulations compliance methods (e.g. SBEM in non-residential) are not acceptably accurate for this purpose. It is not yet known whether future updates to SBEM will be sufficiently accurate for compliance with the local plan policy. Evidence on this may be considered as it emerges. • An ‘assured performance’ method is a series of steps from design through to building handover, aimed to avoid these pitfalls that otherwise tend to cause the energy performance gap. Several methods have been formalised in the industry, including the Passivhaus certification process, BSRIA Soft Landings, and NABERS UK Design For Performance (the latter available for offices only at the 18 Renewable Energy Guarantee of Origin. These are the certificates that energy suppliers purchase for their customers in order to offer their customers ‘renewable’ tariffs. If renewable energy generation equipment at a development towards policy NZC1’s ta rget were also to sell REGO certificates to wholesale energy purchasers, then the carbon savings would be double-counted (once towards this policy, and then again by the customers purchasing the green tariffs that are based on those REGOs). 19 MCS is the Microgeneration Certification Scheme. https://mcscertified.com/ time of drafting this local plan, but may be expanded to other uses in the plan period). Other acceptable methods may be available or may arise in the plan period. 6.1.9 The offsetting price shall start at £2.03kWh, and may be updated in future to keep pace with cost changes. This reflects the current estimated cost of solar PV installation, plus a margin to allow administration of the offset fund by the Council(s). It is expected to be paid into the relevant Council’s offset fund, but the Council(s) will consider alternative schemes where the developer may propose a direct contribution to a suitable renewable energy installation in the area, subject to that scheme meeting the same criteria of additionality that the Council would use to select projects that its own offset fund would support. These criteria will include that