Local Heat and Energy Efficiency Strategy Delivery Plan

September 2024

www.orkney.gov.uk

IMAGE: The Orkney Islands Council crest appears above an aerial photograph of an Orkney settlement beside a sheltered bay, with hills and water in the background. The cover identifies the document as the “Local Heat and Energy Efficiency Strategy Delivery Plan”, dated September 2024, and gives the website www.orkney.gov.uk.

Table of contents

1. Glossary
2. Abbreviations
3. Terms
4. Executive Summary
5. Purpose of the Delivery Plan
6. Delivery Plan layout
7. Delivery Plan scope and limitations
8. Orkney Islands Council’s LHEES
9. LHEES Priorities
10. Heat network analysis based on LHEES methodology
11. Heat networks of interest for Orkney Islands Council
12. Improving energy efficiency in homes
13. Energy efficiency delivery areas
14. Actions for energy efficiency
15. Funding for energy efficiency
16. Non-domestic Council buildings
17. Actions for non-domestic Council buildings
18. Electrification of heat in homes
19. Monitoring and evaluation framework
20. Conclusion and next steps
21. Appendix: Monitoring and Evaluation Frameworks broken down by Goals, Outcomes, Method and Activities

Glossary

Abbreviations

Terms

1. Policy and strategy review
2. Data and tools library
3. Strategic zoning and pathways
4. Generation of initial delivery areas
5. Building-level pathway assessment
6. Finalisation of delivery areas
7. LHEES Strategy
8. LHEES Delivery Plan

Executive Summary

Purpose of the Delivery Plan

Local Heat and Energy Efficiency Strategies (LHEES) are at the heart of a place based, locally-led, and tailored approach to the energy transition. The aim of LHEES is to provide a long-term and evidence-based plan for decarbonising heat in buildings and improving their energy efficiency across an entire local authority area. LHEES are primarily driven by Scotland’s statutory targets for greenhouse gas emissions reduction and fuel poverty:

• Net zero emissions by 2045 and 75% reduction by 2030.
• In 2040, as far as reasonably possible, no household in Scotland is in fuel poverty.

This LHEES Delivery Plan should be considered in conjunction with Orkney Islands Council’s LHEES Strategy. The Delivery Plan explains how the Council will support implementation of the LHEES. It identifies areas for targeted intervention through early, low-regrets measures to improve energy efficiency and decarbonise heat in buildings.

This is the first LHEES Delivery Plan, and it focuses initially on immediate and medium term (5-year) actions. The Council has identified four main priorities for the LHEES:

• Priority A: Making Orkney’s homes energy efficient
• Priority B: Alleviating fuel poverty
• Priority C: Improving carbon efficiency in non-domestic Council buildings
• Priority D: Exploring heat networks for Council buildings

This Delivery Plan sets out the Council’s approach to delivering the LHEES over the next five years. The Council’s approach is to primarily prioritise heat network development to achieve building level decarbonisation across the county. Furthermore, the Delivery Plan examines levels of energy efficiency across all property tenures in Orkney.

At this early stage in the LHEES process, many of the actions detailed in this plan are developmental or reflect projects and initiatives which are already underway. The analysis undertaken to date as part of the LHEES process will be further expanded to develop a more detailed and strategic delivery framework. This will form the basis of the next iteration of the LHEES, which will be reviewed at least annually.

Delivery Plan layout

The actions and delivery areas in this Delivery Plan are split into the following sections:

• Heat networks
• Energy efficiency in homes
• Non-domestic Council buildings
• Electrification of heat in homes

For each chapter, the actions are summarised in a table format. Actions have been prioritised as one of:

• Immediate: actions already in progress.
• Short-term: to be implemented in the next two years.
• Medium-term: to be implemented in the next three to five years.

Delivery Plan scope and limitations

The LHEES is being developed in the context of changing national policies, targets and funding. Multiple relevant national policies and their specific targets are under review, such as the Heat in Buildings Bill and the Net Zero Standard for Social Housing (SHNZS). Equally, established targets have been pulled, such as the Scottish Government’s interim target to reduce greenhouse gas emissions by 75% by 2030. Many actions described in the Delivery Plan are subject to Scottish Government funding for local authorities, such as Home Energy Efficiency Programmes for Scotland: Area Based Schemes.

LHEES is also a new type of policy for local authorities. Many of the actions set out in this document pull together existing actions from other policies. Others focus on laying the groundwork for collaboration between Council teams and other organisations to achieve the goals set out in LHEES. As the Strategy and Delivery Plan are reviewed in future years and as work progresses, the Council intends to use LHEES to develop new heating and energy efficiency projects.

Orkney Islands Council’s LHEES

LHEES Priorities

Orkney Islands Council’s key priorities for this LHEES have been informed by the six LHEES considerations, the local policy context, stakeholder engagement, and analysis of the building stock in Orkney Islands Council. The Council has identified four priorities for the first LHEES.

Summary of Priority A: Making Orkney’s homes energy efficient

Improving the energy efficiency of homes decreases the demand for energy, reduces fuel poverty, and addresses climate change. Orkney Islands Council has made significant improvements to the energy efficiency of domestic properties. However, a significant number of privately rented and owner-occupied properties require improved insulation.

Summary of Priority B: Alleviating fuel poverty

The LHEES presents an opportunity to address the high levels of fuel poverty within Orkney. The Council has worked through a range of programmes to target support to fuel poor households. The Council has made the removal of energy efficiency as a driver of fuel poverty a priority within the LHEES strategy.

Summary of Priority C: Improving carbon efficiency in non-domestic Council buildings

The Council operates and leases a number of non-domestic buildings across Orkney. As the owner of these buildings, it is the Council’s responsibility to ensure these buildings become net zero by 2045. Replacing heating systems with zero direct emissions heating will be essential to this. Improving the energy efficiency of these buildings will help reduce the cost of running them.

Overview of Priority D: Exploring heat networks for Council buildings

Heat networks can provide reliable and decarbonised heating to Council buildings. Developing heat networks in Orkney is a challenge because buildings are not densely located and there are issues with the geology of the area. However, there are some Council buildings that will need to replace their heating systems to a decarbonised heating source. Heat networks may provide a viable option for these buildings to meet Scottish Government decarbonised heating requirements.

Implementation and governance

The implementation of the LHEES will be driven by Orkney Islands Council. The LHEES requires a collaborative cross-sectoral approach, engaging with partners and stakeholders to achieving the goals set out.

The LHEES will be integrated into existing steering groups and governance structure for sustainable development and climate change. This will ensure the strategy can develop as priorities develop and legislative requirements dictate.

Engagement Approach

The LHEES Strategy and Delivery Plan have been developed in consultation with stakeholders across Orkney, and through the public engagement strategy. Implementation will also be a collaborative effort.

A key priority for the delivery of the LHEES is for the Council to develop an engagement strategy. This will draw on the stakeholder identification and mapping work which took place as part of the LHEES development. Key stakeholder groups that the Council will work with include:

• Local community groups
• Public sector partners
• Housing providers
• Delivery partners
• Electricity network operators
• Local businesses
• Advice organisations

Heat network delivery areas

Section 47 of the Heat Networks (Scotland) Act states that each local authority is required to carry out a review to consider whether one or more regions in its area are likely to be particularly suitable for the construction and operation of a heat network. This should be done within the Local Heat & Energy Efficiency Strategy.

Following this review, the Act requires that a decision is made by the local authority or Scottish Ministers to consider designation of areas as Heat Network Zones. The local authority must publish a statement in relation to each area considered which provides a rationale for decisions made.

Approach to selecting heat network delivery areas

As part of the LHEES process, Changeworks conducted GIS analysis using Scotland Heat Map data to create initial heat network delivery areas. The analysis used heat load data from non-domestic public and semi-public buildings.

The Council and Changeworks delivered a workshop to share the findings with key stakeholders in LHEES Stage 6. This included Orkney Housing Association Limited (OHAL), Warmworks, Aquatera, and members of relevant local authority departments. This allowed a collaborative sense checking process to take place and allowed us to see if the outputs reflected the local knowledge and knowledge of those involved.

Changeworks highlighted the limitations of non-domestic datasets, and the need for data to be collected in potential areas through a process such as Building Assessment Reports (BARs), to assess the suitability of a non-domestic property for connecting to a heat network. The primary use of BARs information is to inform decisions on the suitability of areas for the construction and operation of a heat network, and subsequently to inform designation decisions should these areas be progressed for consideration for designation. Following further communication with the council, Changeworks updated several anchor load data addressing any heat load inaccuracies and missing anchor loads.

The outputs of the LHEES data analysis are provided in Section 5.1. Following a review of the outputs, the Council have identified the key heat networks they are interested in exploring further which is discussed in Section 5.2.

Heat network analysis based on LHEES methodology

Limitations

The LHEES methodology for heat network analysis identifies potential high heat load areas suitable for heat network development for the Council to explore. These only account for non-domestic semi-public or public buildings where heat supply is not needed 24 hours a day. Any commercial, privately owned buildings that often come with large heat demands are not accounted for in this analysis. Buildings like this may be suitable for heat network developments.

Additionally, the Scotland Heat Map data that is used as the basis of this analysis may not capture the most up-to-date heat demands of buildings.

Lastly, the recommended practice for zoning heat networks is to apply a linear heat density of 4,000 kWh/yr/m for more rural local authority areas. However, when applied to Orkney, the outputs indicates that there are likely to be no heat network opportunities suitable for economic development. The linear heat density was therefore reduced to 3,000 kWh/yr/m to explore more potential heat network opportunities.

Because of these limitations, the Council has made the decision to not designate heat network zones at this time but have narrowed down specific areas in which potential heat networks may be a solution to meet net zero ambitions, based on knowledge of the area and data outputs.

Priority heat networks

The LHEES analysis has identified two indicative heat network zones in Orkney that are the priority for further investigation and development. Despite inherent challenges in the shortlisting process due to sparse heating demand, priority heat networks were identified based on the possibility of replacing oil fired Council buildings with heat networks.

The proximity of non-domestic public buildings such as leisure centres and schools also contribute to efforts in making the networks as efficient as possible, while offering potential connection to upcoming new housing developments.

For a detailed insight into the methodology for heat network identification, refer to the Appendices of the Strategy Document.

Heat Network Zone 1: Central Kirkwall

The Central Kirkwall indicative heat network zone is represented at four separate heat networks, with a total combined area of 24 hectares, however the Council are exploring these in tandem as one larger heat network. Within the outlined zone there are 21 non-domestic public buildings registering a total estimated annual heat demand of 5,911 MWh/yr.

The cluster is marked by a few pockets of very high heat demand (above 150 kWh/m²/yr) while moderate heat demand (51-75 kWh/m²/yr) underpins the majority of the zone. The two key anchor loads underpinning this area are the Council Offices (1,206 MWh/yr) and the Papdale Primary School (981 MWh/yr).

The Council Offices and Papdale Primary School are currently heated using heating oil. The Council will need to change this heating system in coming years to meet net zero targets. The Council will also explore opportunities to connect the Kirkwall Grammar School (heated with LPG), special needs new build near Papdale Primary School, and Papdale Halls (heated with LPG).

IMAGE: A map titled “Priority Heat Network 1: Central Kirkwall” marks potential anchor loads, oil-fired council-owned buildings, heat-demand values and the priority heat network cluster across Central Kirkwall. The legend shows heat-demand bands below 50, 51–75, 76–100, 101–150 and above 150 kWh/m²/yr, with a scale extending to 360 metres.

Heat Network Zone 2: West Kirkwall

The West Kirkwall (Soulisquoy) indicative heat network zone has an area of 32.2 hectares. Within the outlined zone there are 7 non-domestic public buildings registering a total estimated annual heat demand of 4,809 MWh/yr.

The cluster is marked by a few pockets of very high heat demand (above 150 kWh/m²/yr). The two key anchor loads underpinning this area include the new care home (805 MWh/yr) and Pickaquoy Centre (2,976 MWh/yr).

The Pickaquoy Centre is currently heated with heating oil, and the Council will need to change this heating system in coming years to meet net zero targets. The Council will also explore options to connect the new housing development to this potential heat network.

IMAGE: A map titled “Priority Heat Network 2: West Kirkwall (Soulisquoy)” marks the potential heat network cluster, potential anchor loads, oil-fired council-owned buildings, a Council new housing development and heat-demand values across West Kirkwall. The map includes a north arrow and a scale extending to 360 metres.

Further heat network opportunities

The following three indicative heat network zones have lower heat demands than the priority two clusters shown above and should be considered as additional opportunities. Further exploration will be required to assess viability of these opportunities. This is likely to include:

• Determining existing system capacity
• Site inspections
• Design considerations such as heat source appraisal (e.g. ASHP, GSHP), energy centre location and layout, grid capacity constraints, pipework distribution routes, operating temperatures, individual building upgrades required (e.g. heat interface unit installation)
• Techno-economic analysis
• Funding options and commercial delivery mechanism analysis

Further Heat Network Zone 1: Central Kirkwall (North Harbour – Ayre Road)

This indicative heat network zone has a high density of heat demand as indicated by the large presence of connecting red rasters in the map below. The area is underpinned by 16 non-domestic anchor loads including the Kirkwall Police Station, Fire Station and travel centres.

The next step for the Council is to explore the viability of this development in line with commercial activity in the area. The heat network also neighbours the Central Kirkwall heat network and more longer-term action could be to explore the possibility for connection between these two.

IMAGE: A map titled “Further Heat Network 1: Central Kirkwall (Ayre Road)” marks the potential heat network cluster, potential anchor loads and heat-demand bands around North Harbour and Ayre Road in Central Kirkwall. The map includes a north arrow and a scale extending to 220 metres.

Further Heat Network Zone 2: Stromness

The Stromness indicative heat network zone is indicated by two individual heat networks, but the Council are exploring whether these can be looked at in tandem as one bigger zone.

Currently, the clusters are marked by a sparse distribution of high heat demand as indicated by individual red cells in the map below. The area is underpinned by five non-domestic anchor loads including the Stromness Primary School, Stromness Academy and Stromness Swimming Pool.

The latter two buildings are currently heated with heating oil. The Council will need to change these heating systems in coming years to meet net zero targets. Stromness Primary School is also nearby, and the Council will explore options to connect this building, which is currently heated with LPG. Further exploration of the viability of development in this indicative zone is required.

IMAGE: A map titled “Further Heat Network 2: Stromness” marks two indicative heat network clusters, potential anchor loads, oil-fired council-owned buildings and heat-demand bands around Stromness. The map includes a north arrow and a scale extending to 360 metres.

Further Heat Network Zone 3: Dounby

The Dounby indicative heat network zone is marked by a sparse distribution of high heat demand as indicated by individual red cells in the map below. The area is underpinned by two non-domestic anchor loads consisting of Dounby Surgery and Dounby Primary School.

Dounby Primary School is currently heated using a boiler plant. The Council will need to change the heating system in coming years to meet net zero targets. There is also a care home in Dounby that the Council may explore connecting to. Further exploration of the viability of development in this indicative zone is required.

IMAGE: A map titled “Further Heat Network 3: Dounby” marks the indicative heat network cluster, potential anchor loads and heat-demand bands around Dounby. The map includes a north arrow and a scale extending to 240 metres.

Heat networks of interest for Orkney Islands Council

Due to the limitations of the heat network data analysis, the Council has narrowed down the list of heat networks to focus on in the near term. These two heat networks of interest are in central and western Kirkwall.

Central Kirkwall

The Council is interested in exploring a heat network in Central Kirkwall similar to the one identified in the LHEES analysis. However, they have amended the list of potential anchor loads:

• Council Offices KW15 1NY
• St Magnus Cathedral KW15 1DH
• Papdale Halls of Residence KW15 1JR
• Old PHOR (special needs school) KW15 1NA
• Papdale Primary School KW15 1PJ
• Kirkwall Grammer School KW15 1QN
• Papdale House KW15 1LJ

West Kirkwall

The Council is interested in exploring the heat network identified in the LHEES analysis. The potential anchor loads are:

• Pickaquoy Centre KW15 1LR
• St Colms Centre KW15 1RP
• Glaitness Primary KW15 1RP
• Keelylang KW15 1RP
• New Care Home
• New Housing Development

Actions for heat networks

Funding for heat networks

Currently there is an under-developed pipeline of heat network projects across Scotland. The Scottish Government is providing funding to stimulate and accelerate the development and growth of heat networks. Significant investment from the private sector and heat network developers is also required to achieve heat network deployment at the scale required to reach the national targets of 2.6 TWh of heat output by 2027 and 6 TWh of output by 2030.

Scotland’s Heat Network Fund is designed to support the development and roll out of heat networks across Scotland. It is open to any organisation seeking to develop and deploy heat networks in Scotland. In total £300 million is being made available to stimulate investment and grow the low carbon heat sector. Applications can be made for enabling costs, commercialisation costs, and capital costs. Up to a maximum of 50% of the total eligible capital costs can be covered through this fund.

The Heat Network Support Unit identifies, supports, and develops heat network projects for the public sector. The support available includes expert advice and grant funding to develop projects until they have a clear financial strategy and well-defined business model. The unit is active in project identification, aggregation, and stakeholder engagement and can support with working group management, stakeholder workshops, and policy linkage and review. The Heat Network Support Unit is no longer accepting applications for funding for the 2024-25 financial year. The unit is still accepting applications for advisory-only support and discussions on potential future applications.

Improving energy efficiency in homes

Improving the energy efficiency of buildings reduces heat demand, whilst simultaneously addressing fuel poverty and climate change. Orkney Islands Council has made significant improvements to the energy efficiency of domestic and non-domestic properties. However, a significant number of privately rented and owner-occupied properties require improved insulation.

Overall, analysis of Energy Performance Certificate (EPC) data from Home Analytics shows that energy efficiency is worse on the islands than on the mainland. This section provides energy efficiency data by island for the Council and other stakeholders to plan energy efficiency projects on a geographic basis.

How criteria were chosen

As part of standard Stage 4 LHEES methodology published by the Scottish Government, the energy efficiency delivery area outputs demonstrate and advise the Council on small-scale areas of domestic properties where energy efficiency projects could be initiated and delivered.

The energy efficiency delivery areas are marked based on an equal weighted combination taking into account wall insulation, loft insulation, and window glazing statuses. The Council further opted to explore this by property tenure type: social housing, owner-occupied and privately rented sectors.

The output of the modelling work did not identify any geographically specific areas but simply showed a uniform level of energy efficiency over areas, resulting in no clear project opportunities.

As an alternative, EPC data was used as a proxy for energy efficiency. Instead of delivery area maps, EPC maps were created. The maps display EPC bands D-G to identify the Council’s poorest quality stock and are also further broken down into their respective property tenure. Another criteria included mapping domestic properties where EPC assessments had not been carried out. Both of these criteria were ultimately combined into one map output.

The geographical focus for these maps remain in the 11 outer islands in Orkney as historically, domestic properties here have faced greater levels of fuel poverty. The Council hopes to utilise these maps to identify and provide comparison between the islands where opportunities for immediate EPC assessments could be carried out, and to determine who to approach for matched incentive to install heat pumps.

Energy efficiency delivery areas

Linked South Isles

The majority of the Linked South Isles is made up of owner-occupied domestic properties. Only 51% of properties have had an EPC assessment. Owner occupied EPC Band E properties comprise the greatest group that do not have EPC assessments. More work should be encouraged to increase EPC assessment uptake in this tenure.

IMAGE: A map titled “Linked South Isles” covers the linked southern Orkney islands and marks island boundaries and properties with EPC Bands D–G by tenure, together with properties with no EPC assessment. The legend distinguishes owner-occupied, privately rented, social housing and no-EPC properties.

Flotta

Owner occupied properties make up the majority of domestic properties in Flotta, followed by social housing; privately rented properties have the least presence. Only 57% of properties have had an EPC assessment. EPC Band E owner occupied housing has the greatest number of properties that do not have EPC assessments, and work could be done to ensure assessments are carried out.

IMAGE: A map titled “Flotta” covers Flotta and marks island boundaries and properties by tenure and EPC Band D–G, together with properties with no EPC assessment. An inset shows the settlement area in greater detail.

Hoy and Graemsay

Owner occupied properties make up the majority of domestic properties in Hoy and Graemsay. 43% of properties have not had EPC assessments due to long-term tenancies. EPC Bands E and F-G owner occupied properties make up the largest proportion of these unassessed properties.

IMAGE: A map titled “Hoy & Graemsay” covers Hoy, Graemsay and nearby islands and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. Insets show smaller settlement areas.

Rousay, Egilsay and Wyre

Only 33% of domestic properties in Rousay, Egilsay and Wyre do not have EPC assessments. EPC Bands E and F-G owner occupied properties make up the largest proportion of these unassessed properties.

IMAGE: A map titled “Rousay, Egilsay & Wyre” covers the three islands and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. Insets show settlement areas.

Sanday

Domestic properties that do not have EPC assessments are in the minority (40%). EPC Band E owner occupied properties make up the largest proportion of these unassessed properties, followed by EPC Band D and F-G owner occupied properties.

IMAGE: A map titled “Sanday” covers Sanday and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. An inset shows a settlement area.

Shapinsay

In Shapinsay, 78% of properties are owner occupied properties and 44% have EPC assessments. Of the 44% of domestic properties without EPC assessments, 31% fall in the EPC Band E owner occupied category.

IMAGE: A map titled “Shapinsay” covers Shapinsay and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. An inset shows a settlement area.

Stronsay

74% of properties are owner occupied in Stronsay, of which 41% have an EPC. Just under half of all properties in the island do not have EPC assessments. Most of these are EPC Band E and F-G owner occupied properties. There is also a relatively high count of EPC Band E privately rented properties with unconfirmed assessments.

IMAGE: A map titled “Stronsay” covers Stronsay and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. An inset shows the main settlement area.

North Ronaldsay

63% of domestic properties do not have EPC assessments. EPC Bands F-G owner occupied properties make up the largest proportion of these unassessed properties.

IMAGE: A map titled “North Ronaldsay” covers North Ronaldsay and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment.

Papa Westray

The majority of domestic properties are EPC Band E in Papa Westray. A third of properties do not have an EPC. Most of these are EPC Band E privately rented properties.

IMAGE: A map titled “Papa Westray” covers Papa Westray and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment.

Eday

65% of domestic properties do not an EPC assessment in Eday. Over half (54%) of the properties are EPC Band F-G, with owner occupied and privately rented properties having the highest number of unassessed EPCs in this category.

IMAGE: A map titled “Eday” covers Eday and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. An inset shows a settlement area.

Westray

Just over half (55%) of domestic properties do not an EPC assessment in Westray. Over a third (35%) of these properties have EPC Band E.

IMAGE: A map titled “Westray” covers Westray and marks properties by tenure and EPC Band D–G, together with properties with no EPC assessment. An inset shows a settlement area.

Actions for energy efficiency

Funding for energy efficiency

The Council will draw on available funding from the Scottish Government and other providers to support energy efficiency upgrades of homes.

Social housing

The Social Housing Net Zero Heat Fund supports social housing landlords across Scotland to install zero direct emission heating systems. Funding for “fabric first” energy efficiency projects is also available; however, applicants are required to demonstrate a commitment to installing eligible ZDEH systems into these properties.

There is currently £200 million available over five years up to 2026 and the fund supports capital costs and resource support to help build a pipeline of future projects. The fund can cover up to a maximum of 60% of total capital expenditure costs for zero direct emissions heating elements and 50% of the fabric and energy efficiency measures.

Mixed tenure

Heat and Energy Efficient Scotland: Area Based Schemes (HEES:ABS) are designed and delivered by local authorities, in combination with utility companies and local delivery partners. This funding is provided by Scottish Government. Schemes are targeted in areas in or at risk of fuel poverty and is intended for owner-occupiers and private landlords.

HEES:ABS has historically focused on installing single insulation measures but is now expanding to a ‘whole house’ approach and includes other measures such as zero emissions heating systems. By working on an area-based delivery model, the programme enables mixed-tenure projects, bringing together homeowners, housing associations, and private landlords.

Owner-occupiers

The HES grant and loan is available to homeowners and offers grant funding for heat pumps of £7,500, or £9,000 to those living in rural areas. There is also £7,500 available as an optional interest free loan to further help towards the installation of a heat pump. £6,000 of interest free loan funding is available for households for solar PV panels when taken as a package of measures including a heat pump.

In addition to this funding, up to 75% of the cost of energy efficiency measures can be covered by grant funding, up to a maximum of £7,500 or £9,000 in rural areas. The final 25% can be covered by an interest free loan, or paid by the customer as the loan is optional. These energy efficiency measures include but are not limited to cavity wall insulation, solid wall insulation, loft insulation, and floor insulation.

Warmer Homes Scotland (WHS) offers funding and support to households struggling to stay warm and keep on top of energy bills. This programme is available for homeowners and private sector tenants. WHS takes a ‘whole house’ approach, offering eligible households a bespoke package of measures that takes account of both the needs of the property and the needs of the household.

Heating measure installations are not available in private rented properties. This programme is most often fully grant funded, and potential improvements include wall insulation, loft insulation, draught-proofing, central heating, and renewables. Households must meet the eligibility criteria and live in a property with a low efficiency rating. Interest free loans of up to £10,000 are available for homeowners or landlords who require further assistance to help pay a contribution towards the work.

The Energy Company Obligation (ECO 4) is in its fourth round as a grant/subsidy scheme which provides insulation and heating measures for low income, vulnerable owner occupiers. The measures and funding available are based on specific eligibility criteria and can include insulation, heat network connection, renewable measures, heating installation and repair.

ECO Flex is a household referral mechanism made available through the wider ECO 4 scheme. This programme allows local authorities to widen the eligibility criteria to include households that would otherwise not be eligible through the ECO 4 standard criteria. Orkney Islands Council have previously incorporated ECO Flex funding to HEES:ABS projects. However, the funding requirements have changed, and this is no longer permitted. The Council will assess what resources are required to facilitate future ECO 4-only projects.

Non-domestic Council buildings

The Council operates and leases many non-domestic buildings across Orkney. It is the Council’s responsibility to do what is possible to make these buildings more energy efficient and replace their heating systems to zero direct emissions heating.

The Council will focus on improving the fabric and energy efficiency of buildings and transitioning to net zero heating systems for buildings currently using heating oil or LPG. The retrofit measures will be completed when it is most financially viable and alongside replacement of the building fabric and heating system. For example, roof insulation may be installed when the roof tiles are replaced.

Actions for non-domestic Council buildings

Electrification of heat in homes

Homes across Orkney will need to move from oil heating systems to electric heating systems by 2045 at the latest. This will require collaboration between the Council and a number of stakeholders.

The Council will work with SSEN, the Distribution Network Operator for Orkney, to develop the future energy scenario for Orkney. The LENZA tool will be used to identify increases in supply required to meet the additional load associated with heat pumps replacing oil heating systems.

The installation of EV charging infrastructure will also be considered together with the opportunities for on-site renewable generation, likely solar PV.

The Islands Centre for Net Zero will also be working with the wider community and business sector to identify anticipated future demands.

Actions for electrification of heat in homes

Monitoring and evaluation framework

The monitoring and evaluation frameworks should be used by the council to measure progress against LHEES considerations, local priorities and targets identified in the LHEES Stage 1 and reported against in Stage 3, and to report on the effectiveness of their LHEES delivery.

They should also set out, as far as reasonably possible, a portfolio of projects that are to be taken forward, and track progress of ongoing projects related to LHEES. The frameworks below provide a useful starting point, however, and are to be completed and updated by Orkney Islands Council as per the council’s governance arrangements.

The council is responsible for identifying quantifiable, time-measured targets in line with statutory requirements and local priorities. The monitoring and evaluation frameworks can be found in the Appendix of this document.

A monitoring map has been developed to show the enabling factors that will need to be in place in order to fulfil the overarching objectives of Orkney Islands Council’s LHEES Strategy and Delivery Plan.

IMAGE: A monitoring map shows the pathway from activities to delivery areas, outcomes and the overarching goals. The goal is “Net zero emissions by 2045 and no household in fuel poverty by 2040.” The outcomes are making Orkney’s homes energy efficient, alleviating fuel poverty, improving carbon efficiency in non-domestic Council buildings, and exploring heat networks for Council buildings. Delivery areas include improving domestic energy efficiency, electrification of heat in homes, non-domestic Council buildings and heat network delivery areas. Activities include internal monitoring and governance, an engagement strategy, other policy and delivery work, and funding opportunities.

Conclusion and next steps

This Delivery Plan is designed to sit alongside the LHEES Strategy. It provides a more detailed view of the actions required over the next five years to decarbonise Orkney Islands Council’s domestic and non-domestic building stock. This Delivery Plan details the immediate and medium-term actions that can be delivered now, given the existing policy landscape.

It is a statutory duty for the Council to update the LHEES every five years. Due to the urgency of the climate emergency, and the rapidly evolving policy landscape, the Delivery Plan will be monitored, updated and reported on annually, while the Strategy will be reviewed every five years. This means they should be treated as live documents which will respond to the introduction of new standards, regulation, and delivery programmes.

Appendix: Monitoring and Evaluation Frameworks broken down by Goals, Outcomes, Method and Activities

Key

Table 1: Goals

An evaluation framework to monitor progress towards national decarbonisation targets.

Table 2: Outcomes

An evaluation framework to monitor progress of Orkney Islands Council’s LHEES Priorities.

Table 3: Method

An evaluation framework to monitor progress within Orkney Islands Council’s delivery areas.

Table 4a: Activities

An evaluation framework to monitor progress with governance, stakeholder engagement and other policy work to support LHEES delivery.

Table 4b: Funding opportunities

An evaluation framework to monitor progress with funding opportunities to support LHEES delivery.