Net Zero Carbon Strategy

Risk

Mitigation

Installation of solar panels and wind turbines on facility roof

Potential implications for the structural integrity of the building due to increased loading on the roof.

Grid capacity and constraints.

Structural surveys to assess the structural load which can be supported by the building and identify any additional structural considerations that will need to be made to allow for the installation.

Engage with the distribution network operator (DNO) at feasibility stage to resolve any capacity issues.

Installation of solar panels and wind turbines on facility roof

Implications for the delivery of maintenance and lifecycle for the roof due to reduced access, meaning increased potential for cost overruns for the FM provider and increased potential for deductions should the maintenance regime not be appropriate.

Review of maintenance and lifecycle strategy and agreement of any required change to timings and costs.

Increased waste segregation to reduce landfill

Additional time required by waste management operatives, for sorting and collection of waste, additional waste bins around site and potentially additional KPIs which could incur higher deductions.

Review of the service requirements and KPIs and agree appropriate cost adjustments, review of deduction thresholds, if appropriate. Potential to include a bonus-malus mechanism based on reducing waste tonnages going to landfill.

Installation of heat pump as a replacement of fossil fuel

Additional plant requirement, may require site re-configuration, additional land purchase or additional planning applications, impacting on operational functionality, additional requisites for the site from the planning approval.

Use of an experienced design team working with all project parties should ensure a workable solution from an operational perspective, any land or planning risks should be maintained outside the PPP Project. Any planning obligations would need to be managed as a team.

Use of innovative or unproven technologies

Early examples such as use of thermal bore holes, biomass technology for example, impacted the project in terms of the volume of energy they were able to deliver, inefficiencies and lack of providers able to support maintenance regimes. This tends to improve as technologies become more established, however, the initial installation may cause concern over the achievement of the availability criteria causing additional deductions.

Mitigation can include the inclusion of a provision to allow for the previous system to be maintained as a backup until the new systems have been successfully delivering the requirements. The Supplemental Agreements documenting the Change should include any adjustments to the FM SLS and payment mechanism required by the Change.

Requirement to install energy efficient lighting throughout the facility

Whilst the end result is typically positive, with a reduction in energy consumption and maintenance and lifecycle costs, the initial installation can be disruptive.

Clear phasing of the works developed with the Authority to minimise disruption to core operations. As noted in Chapter 1, provision can be made for relief from deductions caused directly by the delivery of the works in accordance with the agreed provisions.

Amendment to Grounds Management requirements to increase biodiversity, support waste management obligations etc.

Actions include increasing the range of planting, supporting natural hedgerows, maintaining wild areas, introducing facilities for onsite composting of food/organic waste. Risks include increased risk of pest infestation, additional costs for service delivery (for example due to increased requirements, different work scheduling, use of less time efficient working methods), additional KPIs for the service affecting the potential for deductions.

Re-costing of the service on an omissions/additions basis and recalibration of the payment mechanism thresholds to ensure that risk is maintained at a consistent level.