Building Value – Cost Models Must Adapt to Higher Long-Term Energy Costs

Industry analysts expect unit energy costs to increase over many years. This trend will happen irrespective of the energy source and even if the UK switches to renewables and achieves net zero carbon by 2050.

This reality should dominate the thoughts of anyone planning a new building project. It is a fundamental long-term shift in the value for money equation.

Spikes in the price of gas have everyone’s attention right now. But even switching from gas to electricity won’t protect us against higher energy costs in the future. The only ways to keep bills under control will be to limit energy use or, perhaps, install your own onsite generation.

Imagine if every gas boiler and cooker in the country was replaced by an electric alternative. We simply don’t have the generating or distribution infrastructure to come close to meeting peak energy demand.

As electricity generation switches to renewables, we will need large-scale power storage facilities to keep the lights on when there’s little sun or wind.

Specifications and Building Systems

Bottom line; there will have to be a huge investment in generation, storage and distribution infrastructure, paid for out of – you’ve guessed it – higher energy bills.

At some point it’s highly likely that there will be some form of carbon tax to encourage the switch to renewables. This is just another reason why current cost models are inadequate. They take no account of operational carbon or projected energy costs and tell you little about overall value for money.

Protecting building owners and occupiers from inevitable higher energy costs starts with procurement and specification. It’s more than just moving away from lowest upfront cost solutions. Clients, developers and architects should ask to see the data. They should be looking for systems with repeatable and verifiable thermal insulation properties and proven real-world performance.

This is where manufactured construction comes into its own. Thermal performance is designed into the building fabric and air permeability and thermal bridging losses are highly controllable. It’s possible to have a high degree of confidence over the energy consumption of the completed building.

If you want to make a more balanced investment decision for your next project, Innovaré has comprehensive specification and performance data that offer greater certainty over building operating costs.

Contact enquiries@innovaresystems.co.uk for more information or take a look at our resource centre.