Forget CO2, global warming Gas takes over as main energy source for electricity generation Gas prices rising UK now importer of natural gas, likely to be the biggest by GDP by 2017 Supply and demand – electricity prices will rise Nuclear – time to construct and commission Increase energy from wind, tides, etc – technically difficult to manage peaks Invade Norway? CONSERVE WHAT WE’VE GOT
Regulations Paper regulations – red tape Feel good factor Financial
Planning 10% renewable – no proof of effective energy saving
Salix – apply, implement, payment (interim?), repay. £5000 min, any max
Renewable energy systems installed after 15 July 2009 Goes live 1 April 2010 Existing stsems lower rate 9p/kwhr
The investment case for reduction in building energy consumption
Barry Shambrook Founder, Building Energy Reduction initiatives The investment case for reduction in building energy consumption
Incentive types Feel good factor/Corporate Social Responsibility Laws, enforceable regulations Red tape, regulations requiring paper Financial penalties / rewards
Incentives - Hole in the ground stage Planning requirements Part L building regulations Lifetime cost? BREEAM?
Incentives – Sale or lease stage Energy Performance Certificate Energy cost?
Incentives – Private sector “mature” buildings Plant inspection reports CRC Carbon Trading EN14001 ECA tax allowances Feed in tariffs Clause A.4.6 of ISO 14001 states: “ An organization should evaluate those of its operations that are associated with its identified significant environmental aspects and ensure that they are conducted in a way that will control or reduce the adverse impacts associated with them, in order to fulfill the requirements of its environmental policy and meet its objectives and targets”. Potential effect of higher energy prices + CRC Carbon trust loans
Energy saving initiatives Implementation Investment Repayment of investment Qualifies for Enhanced Capital Allowance Grant or 0% loan availability Occupant education 1-2 weeks Very low 1-6 months No No Operator training 1-2 weeks Very low 1-6 months No No Adjustments to HVAC control setpoints, timings and sequences 1-2 weeks Low 1-6 months No No Sub-metering 2-4 weeks Low Indirect, assists diagnosis Yes No Speed control to pumps and fans 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Enhanced HVAC controls 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Power source conditioning 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Lighting upgrade/ replacement 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Automatic lighting controls 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Heating/ cooling plant replacements 2-6 months High 2-5 years Yes Yes, subject to status Building insulation improvements 2-6 months High 2-5 years Yes Yes, subject to status Renewable energy sources 2-6 months Very high 5-15 years Yes Sometimes
Traditional “input” procurement – specify, tender Advantages Disadvantages Proven and understood Time for implementation Standard contracts available No guarantee of energy savings Competitive Best quality? Use of loans and other incentives Best value?
Shared or surrendered energy savings Advantages Disadvantages Guaranteed energy savings Lack of control No investment cost Cost of finance Cannot be used with loans and other incentives
Suggested alternative risk sharing Deposit, 10%? Main payment
Actual example energy reduction initiatives London office building Building energy reduction initiatives Item Investment Qualifies for Enhanced Capital Allowance? Qualifies for Carbon Trust interest free loan? Annual saving Simple ROI /annum Proving period Energy Savings/ Annum in kWhr CO2 Savings /Annum In Tonnes Energy Cost Savings/Annum (£) BMS Adjustments, time schedules and set points £3,000 No No 18,278 9.82 £1,828 60% 1 week Modify chiller and pump controls to eliminate bypass flow through standby chiller £4,400 Yes Probably yes 14,287 7.67 £1,429 32% 2 weeks Install motorized floor isolation dampers along with fan speed control for the office fresh air supply and extract system. £27,000 Yes Probably yes 49,476 26.57 £4,948 18% 4 weeks