Scottish Government

Executive Summary

This research report was commissioned by the Scottish Government, in conjunction with Built Environment Sector Skills Councils and The Alliance of Sector Skills Councils (Scotland), to enhance the evidence base for energy efficiency and low carbon skills in Scotland. This complements the objectives outlined in the Energy Efficiency Action Plan ( EEAP) for Scotland in which the Scottish Government has set out a "wide-ranging programme of activity on behaviour change, household, business and public sector energy efficiency, infrastructure, skills and finance" (Scottish Government, pg1).

Energy efficiency and microgeneration will be two key elements for the built environment in shaping how Scotland rises to the challenge of a statutory 42% reduction in greenhouse gas emissions by 2020. It is clear that the reduction of greenhouse gas emissions and improvements to energy efficiency will have wide ranging economic benefits and will help to promote new technologies whilst creating employment opportunities.

The response to this challenge requires some significant actions across the whole of the built environment as it will involve a significant improvement in the energy efficiency of both new and existing housing, as well as a range of other buildings such as offices, schools, hospitals and retail premises. Although the public sector is looking to lead the way in terms of improving energy performance, such as the commitment to publish weekly details on energy use in the Scottish Government Headquarters, significant change is still needed across public and private sectors, to ensure that there is an appropriate skills base to take advantage of opportunities.

This research has drawn upon previous work commissioned on behalf of the Energy Advisory Board ( EAB), to define a consensus view from the Sector Skills Councils ( SSCs) that form the Built Environment Skills Alliance ( BESA) for Scotland. The research looked to address three main points:

• Assessing the implications for skills and training from energy efficiency and low carbon related demand and investment;
• Develop a view on the level of skills engagement required to support energy efficiency in Scotland; and
• Map future skills requirements and assess gaps in the energy efficiency skills base.

The main conclusions drawn from the research are that although schemes such as Carbon Emissions Reduction Target ( CERT) and Scottish Housing Quality Standards ( SHQS) have been operating for a number of years, there is still a significant amount of work to do to improve energy efficiency and microgeneration across the built environment for housing and non-housing. There is still scope for schemes to make a positive impact on meeting future energy reduction targets, especially as energy efficiency and microgeneration uptake is still at a formative stage for Scotland and the rest of the UK. Initiatives such as Feed-in Tariffs, Renewable Heat Incentive, Green Deal and the Energy Company Obligation will stimulate demand in the coming years whilst Scottish Building Standards and Scottish/ UK Government policy will provide the legislative push, and actions taken over the next few years will set the context for future work.

The scale of the task and the opportunity presented by work to improve energy efficiency of both housing and non-housing buildings is significant, and this will inevitably require a suitably skilled and experienced workforce to achieve it. The employment projections within the research show that there are occupations such as energy advisors; electricians, plumbers, heating engineers, ventilation and air conditioning specialists, and building insulation installers who will be essential for the work, therefore it is possible to identify critical occupations. Although there is some uncertainty around the pace of uptake for future energy efficiency measures across the built environment, it is clear that certain occupations will be influenced more than others and the requirement for new skills will be largely relevant to the existing workforce.

In setting out the EEAP, the Scottish Government is laying the foundations for future action, however there will be a need to revise and update the assumptions on which future employment projections have been made. Similar work carried out for the Welsh Assembly Government and work currently underway within DECC highlights that this issue exists across the UK. It remains challenging to develop projections when the exact nature of energy efficiency uptake is far from certain and the conclusion here is that further work will be required to develop and quantify future projections using a methodology that is clear and transparent.

Table 1 summarises the main occupational areas relating to energy efficiency and microgeneration, which aspects they would be involved with, an estimate of the employment projections (given in Full Time Equivalent - Years) and an outline of the skills implications.

Energy advisors and energy assessors will be heavily involved in the initial advice and guidance, as well as providing energy performance certificates, with these occupations under the remit of Asset Skills. Energy assessors are an established occupation with clear qualifications, accreditation and competence requirements, although the different implementation of the Energy Performance of Buildings Directive in Scotland gives rise to some differences within the UK. In relation to energy advisors, Asset Skills is currently developing both the qualifications for Scotland, in conjunction with SQA and other awarding bodies, and the accreditation/competence requirements with stakeholders.

Insulation installers (loft, cavity and solid wall) will be required, especially for the retrofitting of existing housing stock to improve energy performance, and these occupations fall under the remit of ConstructionSkills. Although loft and cavity wall insulation have been available for numerous years, there are still a significant number of houses that can benefit from these measures, and this type of insulation will play a significant part in energy efficiency improvements. Both loft and cavity wall insulation are cost effective, with minimal disruption in terms of work carried out however there will be a point when further insulation and/or other measures have to be used alongside them to ensure improved energy efficiency. Solid wall insulation will become increasingly important, especially for homes that are not suitable for cavity wall insulation, and there will be a significant increase in demand for this type of insulation work. The conclusion here is that further work is required to develop and ensure that formal qualifications are in place to support this occupation. This is an area in which ConstructionSkills is starting to work, in partnership with relevant trade federations such as Insulated Render and Cladding Association and the National Insulation Association,

Electrical, plumbing, heating, ventilation and air conditioning occupations will be some of the main beneficiaries from the installation of microgeneration measures that are forecasted to take place in coming years. These occupations are within the remit of SummitSkills. In addition to carrying out core tasks associated with each occupation, 'topping up' core skills with appropriate microgeneration skills will allow workers to work across the range of energy efficiency and microgeneration measures that will be installed, from ground source heat pumps through to solar hot water and photovoltaic systems. SummitSkills has been working on, and will continue to work towards the development of qualifications and standards that support microgeneration installation. The main conclusion here is that microgeneration technology skills requirements constitute top-up skills required by a significant proportion of the existing workforce, rather than the development of an array of new qualifications.

The use of recognised accreditation schemes to guarantee competence of work will be an important aspect in shaping the demand for skills and training. This will be heavily influenced by decisions that are being made around the Green Deal and here there needs to be greater clarity and understanding of the role that accreditation will play going forward.

Table 1: Summary of main occupational areas relating to energy efficiency and microgeneration

Note: * FTE Y refers to one full time equivalent, working for one year.

The main recommendations of the research are split into themes: general issues; qualifications and accreditation; information advice and guidance ( IAG);

General Recommendations

This research has shown that data around the potential impact of energy efficiency and microgeneration for the built environment is fragmented in nature, and can be difficult to isolate from official data sources. It is therefore challenging to develop projections when the exact nature of energy efficiency uptake is far from certain and in this context this research needs to be viewed as a starting point.

Recommendation 1: The Scottish Government and Sector Skills Councils should continue to refine and develop modelling scenarios for energy efficiency and microgeneration uptake and employment. This should use a transparent and consistent methodology that takes into account new initiatives such as the Green Deal and Energy Company Obligation, with a particular emphasis being how these measures are likely to be adopted across Scotland.

Recommendation 2: The Scottish Government should co-ordinate the establishment of a focal point for the collation, analysis and dissemination of energy efficiency and microgeneration projections covering regulatory timeframes, investment projections, employment and skills. This would include input from Sector Skills Councils, Scottish Government, Skills Development Scotland, Scottish Funding Council and other key stakeholders.

Recommendation 3: Scottish Government programmes for public sector new build and retrofit activity should, where possible, lead the way as exemplar projects in the introduction of energy efficiency and microgeneration measures for Scotland. This information should be disseminated as widely as possible with contractors, developers, Local Authorities and other public sector procurement bodies.

Qualifications/Accreditation

It is important that public sector projects which cover energy efficiency and microgeneration measures ensure that work carried out requires the use of recognised accreditation schemes. This would help to strengthen the uptake of accreditation schemes while also ensuring that work is carried out to a consistent standard. The role that accreditation and competence schemes will play in future energy efficiency and microgeneration work is an area that should receive consideration and in particular how schemes in Scotland link in with UK schemes.

Recommendation 4: Public sector projects for energy efficiency and microgeneration measures should require the use of recognised accreditation schemes, and this should be embedded in the procurement process.

Recommendation 5: Sector Skills Councils should continue the development of National Occupational Standards/qualifications for energy advisors, supporting the training and development of the role. They should also work with accreditation bodies to ensure that energy assessors are supported to achieve the required standard.

Recommendation 6: Continued development of recognised training for solid wall insulation, linked to accreditation and competence requirements in conjunction with Sector Skills Councils, Historic Scotland, employers, awarding bodies, Scottish Funding Council, Further and Higher Education and private training providers.

Recommendation 7: There is a need for Sector Skills Councils to support the continued development and establishment of accredited skills and training with existing and new accreditation bodies and the Scottish Government. The SSCs should also continue to engage bilaterally on these skills and training opportunities to employers in their footprints.

Recommendation 8: The Scottish Government should examine the role that accreditation and competence schemes will have in supporting energy efficiency and microgeneration schemes in Scotland, and ensure that these are integrated appropriately with wider UK initiatives.

Recommendation 9: The Sector Skills Councils should continue to support the Scottish Government to ensure that differences that exist do not act as potential barriers to future energy efficiency and microgeneration uptake. This should include ongoing work with the Scottish Credit and Qualifications Framework, awarding bodies and accreditation bodies, to ensure that there is recognition of equivalence for qualifications and accreditation across all of the UK.

Information, Advice and Guidance ( IAG)

One aspect that could be strengthened is improved awareness and understanding about future policy, strategy and legislation; in particular the energy efficiency standards that will be applied across the built environment. There is therefore the potential to have a roadmap for domestic and non-domestic property in Scotland.

Recommendation 10: The Scottish Government should continue to work with Sector Skills Councils to help establish and communicate roadmaps and a timeline for the implementation of legislation, policy and standards to employers across the Built Environment.

Flexible Structures and Training Provision

Recommendation 11: Scottish Government to use publicly based construction work to help establish relevant training, in effect pump-priming the system, whilst also strengthening the evidence base for future training demand.

Recommendation 12: Sector Skills Councils to continue dissemination of labour market intelligence, highlighting the opportunities that exist for energy efficiency and microgeneration across the built environment.

Lastly, actions in the coming years will shape the landscape for energy efficiency and microgeneration employment and skills across the Scottish built environment through to 2020. However there are legally binding greenhouse gas emission reduction targets through to 2050 to be achieved which will require work to continue well beyond 2020, with low carbon construction and operation essentially becoming standard practice. Work being carried out from 2011 to 2020 is the starting point towards having a built environment with improved energy performance, although this needs to go hand in hand with changing behaviour in how energy is used and a vision of how energy efficiency and microgeneration will develop in the longer term. Other factors such as energy costs, macro energy generation technology, impact of smart grids for distribution and carbon trading schemes would all influence progress towards emissions reductions should also be taken into account when considering a long term perspective. It is therefore important to plan for activities beyond 2020.