The Local Energy Challenge –
              solutions for business

              Richard Scott
              Head of Consultancy Richard – E.ON Sustainable EnergyConsulting
                                  Services Scott: Head of Carbon



© 2007 E.ON
European Strategic Energy Policy Context & Drivers

                                                                               UK Energy
              EU 20–20–20 Targets                                              Policy Impact

Political Motivations    EU Energy




                                      Legislation to drive delivery
1.Make the best use of   Security &
EU’s indigenous          Solidarity




                                          of 20-20-20 targets
energy resources         Plan
through renewables
2.Reduce GHG             EU Energy
emissions                Efficiency
3.Increase energy
                         Package
efficiency
4.Ensure affordable                                                   1.   15% Renewables
energy                   Renewable                                    2.   20% reduction in
                         Energy                                            energy consumption
                         Directive                                    3.   20% reduction in GHG
                                                                           emissions (from 1990 levels)
© 2007 E.ON                                                                            27 June 2011, E.ON, Page 2
“Why
                 would an energy company
              want me to use less energy?”
© 2007 E.ON
The Energy Trilemma

We’re building the low carbon
communities of tomorrow, today.

That means reducing carbon
emissions and doing so while
keeping energy costs down and
the lights switched on.

The Energy Trilemma lies at the
heart of the local energy
challenge too!

© 2007 E.ON
Malmö Western Harbour
1990s
 © 2007 E.ON
                  Photo: Malmö Municipality
The Western Harbour,
2009




© 2007 E.ON
Regenerating Malmo, Sweden.




1990

2009
                • E.ON District Heating Plant 1, 7 & 9
                • E.ON Cogeneration plant 8
                • Connected via a 23km E.ON heat-network
                We provide the city with a 99.7% availability
                   guarantee of 100% renewable energy
  © 2007 E.ON
Decentralised energy across Malmö gives them fuel flexibility - but
it’s facilitated through a highly efficient built-environment

   Human behaviour
   Insulation
   Building Energy Management
   Boiler Optimisation
   Voltage Optimisation
   Wind-power
   Heat-pumps
   Solar PV
   Solar Thermal
   Organic waste fermentation



  The right solution is different for every
   building - different for every business
  © 2007 E.ON
How do you decide where to start?
Marginal Abatement Cost Curves

                  40.0


                  20.0
                                                                                                                      Project 5
                   0.0
                          0               20   40   60          80   100   120   140    160   180    200      220   240   260   280   300   320
                  -20.0
                                                                                         Project 4
                                                    Project 2

   MAC
                                                                            Project 3
                              Project 1




 (£/tCO2)
                  -40.0


                  -60.0


                  -80.0


             -100.0
                                                                             Annual CO2 saving (tCO2/ p.a.)



    © 2007 E.ON
Smart-buildings to live displays, carbon accounting software or
   validation of technology choices are good places to start

                                   Air
               Indoor              Handling         Exhaust           Cooling     Elevators
                           Air                                                                            Halon
               Air Quality         Unit                   Smoke       Towers                  Lighting
                           Filters                  Fans                            Zone                  System
  Cameras      Services            Controllers            Detectors                                                     Diffusers
                                                                                                  Heating       VAV
                                      Cooling                Solar                  Control
                                               Fans                                               Units         Units
                                      Coils                  PV                     Panels                                 Cameras


Dampers




 Intrusion
 Detectors
     Card
     Readers
    Access
    Management                                                                                      Thermostats/ Vending Machines
                                  Pumps
    Controllers                                                                                     Humidistats
                                               Operators
                           Chillers &                                                           Parking         Water Systems
          Chemical                             Station
                           Boilers                                Rack/Server IDF PDU           Garage
          Water                      Computer Room Fire Alarm
          Control                    Air Handlers      Panels
             © 2007 E.ON
Shift in DEC distribution from 2009-2050 required for an 80%
reduction in CO2 emissions




  Source: Department for Communities and Local Government Data for public sector buildings (August 2009): Carbon Trust analysis
  © 2007 E.ON
Dalston Lane, London                      Winner of CHPA
                                          Community and
                                       Residential award 2009
Size of development: 550 residential
units + Library + small retail units

Energy Centre Plant: 185kWe CHP,
250kW Biomass boiler, 3 x 1.45MW
Gas Boilers

CO2 Savings: c.785 tonnes CO₂ per
year [code 3]

Energy from Renewables: 10%


   © 2007 E.ON
• The market for Energy Saving
Contracts is immature in the UK

• We delivered one of the very
first at Newham NHS Hospital

• Our experience focused us on
a ‘building specific’ solution to
meet the Trust’s needs

• The Energy Saving Contract
model brings capital to energy
efficiency projects.


    © 2007 E.ON                     27 June 2011, E.ON, Page 13
• We’re all now aware that the real
challenge is retro-fit buildings

• Using thermal cameras, on-site
building fabric analysis and detailed
energy use data, we answered a crucial
question for these flats in Stoke

• What combination of technologies
would yield greater value of energy
savings than the cost to install them?

• In this way you make clear the
investment rationale for energy
efficiency and carbon reductions
   © 2007 E.ON
We’re working on the UK’s largest carbon and energy efficiency project
in the Greenwich – 10,000 homes, 2.5M Sq. Ft. of Commercial space




   © 2007 E.ON
Innovative funding models for delivering decentralised energy

An ESCo can be a route to
solving funding issues,
ensuring continuity of
supply and building a long-
term genuine partnerships




 © 2007 E.ON
Why would you want an ESCo on board?
A good ESCo can de-risk your
project, with capital infusion
and specialist skills, delivery
and operational experience


Seek out an ESCo that can
support you across the value
chain, from initial advice to
‘whole life’ services




  © 2007 E.ON
Technology agnostic – client specific




                 Variety of generation technologies match
© 2007 E.ON               solutions to specific applications
                                                      18
CHALLENGERS                         LEADERS

We’ve been                                                              E.ON
rated as
                                                                                 British Gas
‘leading’ in this
space by the                                                            EDF
respected and                                         NPower
                    Capability
independent
Verdantix green-                                   GDF Suez
                                                                                 Good Energy
quadrant report.
                                                                                   Ecotricity
                                 Scottish & Southern Energy
                                                                Scottish Power
                                                               Smartest Power
                           Gazprom
                                              Total

                                           Haven Power
                                  ENTREPRENURS                         SPECIALISTS
   © 2007 E.ON                                         Momentum
If the green jobs of the low carbon economy are to take
flight – we need a genuine partnership between business
              and the communities they serve




  © 2007 E.ON

E.on

  • 1.
    The Local EnergyChallenge – solutions for business Richard Scott Head of Consultancy Richard – E.ON Sustainable EnergyConsulting Services Scott: Head of Carbon © 2007 E.ON
  • 2.
    European Strategic EnergyPolicy Context & Drivers UK Energy EU 20–20–20 Targets Policy Impact Political Motivations EU Energy Legislation to drive delivery 1.Make the best use of Security & EU’s indigenous Solidarity of 20-20-20 targets energy resources Plan through renewables 2.Reduce GHG EU Energy emissions Efficiency 3.Increase energy Package efficiency 4.Ensure affordable 1. 15% Renewables energy Renewable 2. 20% reduction in Energy energy consumption Directive 3. 20% reduction in GHG emissions (from 1990 levels) © 2007 E.ON 27 June 2011, E.ON, Page 2
  • 3.
    “Why would an energy company want me to use less energy?” © 2007 E.ON
  • 4.
    The Energy Trilemma We’rebuilding the low carbon communities of tomorrow, today. That means reducing carbon emissions and doing so while keeping energy costs down and the lights switched on. The Energy Trilemma lies at the heart of the local energy challenge too! © 2007 E.ON
  • 5.
    Malmö Western Harbour 1990s © 2007 E.ON Photo: Malmö Municipality
  • 6.
  • 7.
    Regenerating Malmo, Sweden. 1990 2009 • E.ON District Heating Plant 1, 7 & 9 • E.ON Cogeneration plant 8 • Connected via a 23km E.ON heat-network We provide the city with a 99.7% availability guarantee of 100% renewable energy © 2007 E.ON
  • 8.
    Decentralised energy acrossMalmö gives them fuel flexibility - but it’s facilitated through a highly efficient built-environment Human behaviour Insulation Building Energy Management Boiler Optimisation Voltage Optimisation Wind-power Heat-pumps Solar PV Solar Thermal Organic waste fermentation The right solution is different for every building - different for every business © 2007 E.ON
  • 9.
    How do youdecide where to start? Marginal Abatement Cost Curves 40.0 20.0 Project 5 0.0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 -20.0 Project 4 Project 2 MAC Project 3 Project 1 (£/tCO2) -40.0 -60.0 -80.0 -100.0 Annual CO2 saving (tCO2/ p.a.) © 2007 E.ON
  • 10.
    Smart-buildings to livedisplays, carbon accounting software or validation of technology choices are good places to start Air Indoor Handling Exhaust Cooling Elevators Air Halon Air Quality Unit Smoke Towers Lighting Filters Fans Zone System Cameras Services Controllers Detectors Diffusers Heating VAV Cooling Solar Control Fans Units Units Coils PV Panels Cameras Dampers Intrusion Detectors Card Readers Access Management Thermostats/ Vending Machines Pumps Controllers Humidistats Operators Chillers & Parking Water Systems Chemical Station Boilers Rack/Server IDF PDU Garage Water Computer Room Fire Alarm Control Air Handlers Panels © 2007 E.ON
  • 11.
    Shift in DECdistribution from 2009-2050 required for an 80% reduction in CO2 emissions Source: Department for Communities and Local Government Data for public sector buildings (August 2009): Carbon Trust analysis © 2007 E.ON
  • 12.
    Dalston Lane, London Winner of CHPA Community and Residential award 2009 Size of development: 550 residential units + Library + small retail units Energy Centre Plant: 185kWe CHP, 250kW Biomass boiler, 3 x 1.45MW Gas Boilers CO2 Savings: c.785 tonnes CO₂ per year [code 3] Energy from Renewables: 10% © 2007 E.ON
  • 13.
    • The marketfor Energy Saving Contracts is immature in the UK • We delivered one of the very first at Newham NHS Hospital • Our experience focused us on a ‘building specific’ solution to meet the Trust’s needs • The Energy Saving Contract model brings capital to energy efficiency projects. © 2007 E.ON 27 June 2011, E.ON, Page 13
  • 14.
    • We’re allnow aware that the real challenge is retro-fit buildings • Using thermal cameras, on-site building fabric analysis and detailed energy use data, we answered a crucial question for these flats in Stoke • What combination of technologies would yield greater value of energy savings than the cost to install them? • In this way you make clear the investment rationale for energy efficiency and carbon reductions © 2007 E.ON
  • 15.
    We’re working onthe UK’s largest carbon and energy efficiency project in the Greenwich – 10,000 homes, 2.5M Sq. Ft. of Commercial space © 2007 E.ON
  • 16.
    Innovative funding modelsfor delivering decentralised energy An ESCo can be a route to solving funding issues, ensuring continuity of supply and building a long- term genuine partnerships © 2007 E.ON
  • 17.
    Why would youwant an ESCo on board? A good ESCo can de-risk your project, with capital infusion and specialist skills, delivery and operational experience Seek out an ESCo that can support you across the value chain, from initial advice to ‘whole life’ services © 2007 E.ON
  • 18.
    Technology agnostic –client specific Variety of generation technologies match © 2007 E.ON solutions to specific applications 18
  • 19.
    CHALLENGERS LEADERS We’ve been E.ON rated as British Gas ‘leading’ in this space by the EDF respected and NPower Capability independent Verdantix green- GDF Suez Good Energy quadrant report. Ecotricity Scottish & Southern Energy Scottish Power Smartest Power Gazprom Total Haven Power ENTREPRENURS SPECIALISTS © 2007 E.ON Momentum
  • 20.
    If the greenjobs of the low carbon economy are to take flight – we need a genuine partnership between business and the communities they serve © 2007 E.ON