The document provides an update on UK financing programs for energy efficiency (EE), including the Green Deal and Energy Company Obligation (ECO). Key points include:
- The Green Deal is gaining momentum with over 18,000 assessments completed, but faces potential issues around low conversion rates and achieving estimated savings.
- Local authority-led models are promising, with over £100 million committed across various UK cities.
- The Green Investment Bank has allocated over £100 million to non-domestic EE funds, but deals are still in the early stages.
- Additional initiatives include ESCOs in Peterborough and a £200 million corporate EE fund from the Royal Bank of Scotland.
Case studies of local governments in NSW ramping up renewablesBarbara Albert
Barbara Albert from 100% Renewables is presenting three case studies of local governments in NSW ramping up renewables.
Barbara highlights nearly 25 cities and local governments in Australia who have committed to be either carbon neutral or to source 100% of their electricity from renewables. Three case studies describing the initiatives being undertaken by Councils within their operations and in the community are also presented.
Centre for Sustainable Energy, Energy at Home Trade Support, Solar Power: Dem...The Future Economy Network
Phillip Morris, Senior Development Manager for the Centre for Sustainable Energy talks about Energy at Home, a scheme which offers generous grants for heating and insulation to help residents of Bath & North East Somerset to make energy saving improvements to their homes.
Following the success of community owned solar energy projects in Brixton, Brighton, Bath and elsewhere a group of residents is working to set up a not-for-profit solar energy co-operative based in South East London. This will be a cooperatively owned enterprise that generates renewable electricity for use by householders and for sale to the national electricity grid.
The group plans to raise investment from the community to enable them to install solar panels on the large sunny roofs of building providing social housing or community services.Generating clean electricity in this way can potentially provide low cost or free electricity and fund energy efficiency measures whilst also providing a return to investors
The groups invites all those who would like to get involved in setting up the cooperative or who would like to find out more about investing in it or benefiting from it get in touch! These slides are from the first public meeting held on Sunday 9th March 4 – 5.30pm at the Food Bank, 467 New Cross Road.
Efficiency Nova Scotia is Canada’s first energy efficiency utility. Through advice, education and rebates, they are helping municipalities and Indigenous communities to drive down their energy use, achieve reductions in greenhouse gases, and foster better communities for their residents and businesses. Learn how Efficiency Nova Scotia is able to promote energy savings at municipal buildings through upgrades, retrofits and new construction, in municipal operations with Onsite Energy Managers, water and wastewater utility projects, district energy and via policy with building codes and by-laws. The presentation will also explore key drivers and barriers for Nova Scotian municipalities and explain how Efficiency Nova Scotia interacts with other industry stakeholders.
The Australian National Energy Market has seen significant increases in the price of electricity. How has this happened in a continent blessed with energy resources?
Presentation during seminar organised by HCA and RIBA exploring how to ensure design quality. Looks at how issues such as communication techniques that foster ownership in all members of the design team.
Case studies of local governments in NSW ramping up renewablesBarbara Albert
Barbara Albert from 100% Renewables is presenting three case studies of local governments in NSW ramping up renewables.
Barbara highlights nearly 25 cities and local governments in Australia who have committed to be either carbon neutral or to source 100% of their electricity from renewables. Three case studies describing the initiatives being undertaken by Councils within their operations and in the community are also presented.
Centre for Sustainable Energy, Energy at Home Trade Support, Solar Power: Dem...The Future Economy Network
Phillip Morris, Senior Development Manager for the Centre for Sustainable Energy talks about Energy at Home, a scheme which offers generous grants for heating and insulation to help residents of Bath & North East Somerset to make energy saving improvements to their homes.
Following the success of community owned solar energy projects in Brixton, Brighton, Bath and elsewhere a group of residents is working to set up a not-for-profit solar energy co-operative based in South East London. This will be a cooperatively owned enterprise that generates renewable electricity for use by householders and for sale to the national electricity grid.
The group plans to raise investment from the community to enable them to install solar panels on the large sunny roofs of building providing social housing or community services.Generating clean electricity in this way can potentially provide low cost or free electricity and fund energy efficiency measures whilst also providing a return to investors
The groups invites all those who would like to get involved in setting up the cooperative or who would like to find out more about investing in it or benefiting from it get in touch! These slides are from the first public meeting held on Sunday 9th March 4 – 5.30pm at the Food Bank, 467 New Cross Road.
Efficiency Nova Scotia is Canada’s first energy efficiency utility. Through advice, education and rebates, they are helping municipalities and Indigenous communities to drive down their energy use, achieve reductions in greenhouse gases, and foster better communities for their residents and businesses. Learn how Efficiency Nova Scotia is able to promote energy savings at municipal buildings through upgrades, retrofits and new construction, in municipal operations with Onsite Energy Managers, water and wastewater utility projects, district energy and via policy with building codes and by-laws. The presentation will also explore key drivers and barriers for Nova Scotian municipalities and explain how Efficiency Nova Scotia interacts with other industry stakeholders.
The Australian National Energy Market has seen significant increases in the price of electricity. How has this happened in a continent blessed with energy resources?
Presentation during seminar organised by HCA and RIBA exploring how to ensure design quality. Looks at how issues such as communication techniques that foster ownership in all members of the design team.
Presentation on "Waking the sleeping giant of energy efficiency", made to CleanTuesday Paris 18th September 2012. Video available at http://lnkd.in/XzVwCt (starts at 8 minutes 30. Slides via icon on top row.)
Space Tourism and Sustainable DevelopmentSteven Fawkes
Presentation on Space Tourism and Sustainable Development to British Interplanetary Society Space Tourism conference 29th November 2006. Links the development of low cost access to space to the issues of sustainable development.
Bristol Energy Cooperative Bond Offer July 2017Andy O'Brien
Bristol Energy Cooperative (BEC) launches a new crowdfund to continue its journey to become a major generator of community-owned clean energy.
The crowdfund target of £1,150,000 will enable BEC to repay previous loans and invest in new micro-renewable generation and storage schemes. These include a 100kW Tesla battery storage project at a new sustainable housing site.
This bond offer builds on the popularity of BEC’s energy schemes where surplus profits are reinvested into the community. BEC has a proven track record of funding and developing renewables, including raising the ambitious sum of £10m last year.
Find out more in Director Andy O'Brien's presentation detailing BEC's plans for the future.
Peter Dennis, Smart Grid Aggregation Analyst from Ecotricity, who discussed the impact of grid operators actions on trying to create a low carbon power environment.
This paper will outline and showcase the success of local authorities across England that have used Salix Finance to enable energy efficiency projects and reduce energy bills and carbon emissions, through installing energy efficient street lights. It will look at the benefits that these projects bring to authorities and include case study examples of projects, as well as details for ongoing funding and how this can be accessed. A focus will be made on Kent County Council’s ongoing LED street lighting conversion, one of the largest programmes of its kind to date in the UK. The programme has been partly funded by Salix Finance. Key representatives from Kent will share technical and delivery lessons learnt from undertaking the programme.
By Hayley Veenhoven, Salix Finance and Sue Kinsella & Richard Emmett, Kent County Council
A workshop was held in the IFSC on December 8th 2016, looking at financial incentives to promote citizen investment in renewable energy. The workshop was organised by Dr. Celine McInerney, Cork University Business School, and Joseph Curtin, UCC. It was funded by the EPA Research programme.
Unlocking the benefits of an integrated energy and sustainability strategyAlison Sutton
The financial, social and environmental value of an integrated energy and sustainability strategy through on-site energy generation. Case studies highlight how businesses and organisations can adopt this model and reap the benefits of it. This was presented at University College London by Mark Stokes, Managing Director of Utilyx's Asset Management division.
Clean Growth Summit: Prospering from the Energy RevolutionKTN
As part of Green Great Britain Week’s Clean Growth Innovation Summit Rob Saunders discussed the “Prospering from the Energy Revolution” Industrial Strategy Challenge Fund.
As part of the Industrial Strategy Challenge Fund the Government will invest to make the UK a global centre for integrated energy systems that deliver cleaner and cheaper energy.
Find out more: www.ktn-uk.co.uk/news/uk-research-and-innovation-launches-energy-revolution-research-consortium-call
June 1980 Undergraduate dissertation examining the Lockheed proposal to fly LH2 fuelled Tristars. Submitted for BSc Science of Resources, University of Birmingham.
The role of cities in increasing investor confidence in energy efficiencySteven Fawkes
Presentation made to the Covenant of Mayors 21st Feb 2018. Sets out some of the actions that cities can take to increase the flow of investment into energy efficiency - focusing on standardisation.
Innovative Financial Models and Programmes for the Delivery of Energy Efficie...Steven Fawkes
Presentation setting out models of finance and programmes for Energy Efficiency Projects. Stresses the point that EE is only a small market and won't really change the way that finance works.
Energy efficiency: how much will policy / technology reduce demandSteven Fawkes
Presentation to FLAME gas conference May 2017. Explores how far combination of policy, technology, economics, finance, market infrastructure and business models will reduce energy demand.
4. Agenda
Update on Green Deal
- Latest numbers in over night
ECO, GIB & other initiatives in an Appendix to PPT
4
5. Green Deal – the basics
• Financing of efficiency with repayment through
electricity bills
• Tied to meter i.e. property
• Golden Rule:
– repayments always less than estimated savings
• Target of £14 billion investment over 10 years
– cf. £80 billion requirement
• ‘Light’ credit assessment:
– 80% eligible
• 10-25 year debt from private sector
• Residential focus but can be applied to business
5
6. Eligible measures
45 eligible measures in categories:
• Heating, ventilating and air conditioning
• Building fabric
• Lighting
• Water heating
• Microgeneration
6
7. Context – housing stock & energy
• 76% of UK properties built before 1980
– Pre 1919 – 21%
– 1919-1944 – 16%
– 1945-1964 – 19%
– 1965-1980 – 22%
– 1981-1990 – 9%
– Post 1990 – 12%
• Homes produce 27% of GHG emissions
• Domestic energy bills a big social/political issue:
– 2007 – 2012:
• 37.1% real increase in average gas bill
• 15.5% real increase in average elecricity bill
– One in five now in debt to energy supplier
– 6 million households in fuel poverty – 9 million by 2016? 7
10. Green Deal - Process & Actors
Assessment
Recommendations
Quotes
Plan
Implementation
Repayment
Green Deal Assessor
Green Deal Provider
Green Deal Installer
Electricity suppliers
GreenDealOversightand
RegistrationBody(ORB)
Green Deal
Finance
Company
10
11. Green Deal Finance Company (GDFC)
Structure and function
• Industry led consortium > 50 members
• Provides finance to Green Deal Providers
Funded by
• £7m loan from DECC to cover set-up
• £69m Loan and Junior Capital from 16 members of GDFCo
• £30m Junior Capital Facility of £20m and Contingent Capital Facility from DECC
• £125m Senior Debt from UK Green Investment Bank
• Negotiating £125m debt with European Investment Bank
Customer offer
• 6.96%
• Set up charge £63
• Annual operating charge £20
• Exploring Islamic financing option to access 2.7 million Islamic population
11
12. Additional support for Green Deal
• DECC £125m to fund ‘Green Deal Cashback Scheme’
• Available on ‘first come first serve’
12
13. Green Deal status 16th April
Launched 28th January 2013
• 108 Accredited Green Deal Assessor organizations
• 1,003 Accredited Green Deal Assessors
• 40 Green Deal Providers
• 629 Accredited installers
• 9,268 Green Deal Assessments completed
• 1st Green Deal ‘good to go’, 2 others being reviewed (11th
April)
• GDFC established and funded (£244m)
13
STOP PRESS
14th May 2013
- 152
- 1,274
- 55
- 942
- 18,861
14. Green Deal gaining momentum
0
200
400
600
800
1,000
1,200
Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Assessor organisations Individual Advisors
Green Deal Providers Installer organisations
‘The latest figures on the Green
Deal show that this new market is
gathering real momentum; 9,268
Green Deal assessments taking
place in just over two months is
very encouraging and shows a
genuine interest from consumers.’
Greg Barker, Minister, DECC, April
14
16. Inevitable teething problems
‘We’ve had the official launch – this time accompanied by a
press campaign – but the sad reality is that the systems
aren’t ready yet. The largest part of the system still missing is
the finance, but there are also problems with the wording in
Green Deal plans, the snail-like pace of certifying Assessors
and the lack of guidance about how ECO will work. I’d be
interested to hear from anyone who has actually produced
and financed a Green Deal plan… anyone?’
Diary of a Green Deal Provider
3rd April 2013
http://www.localenergy.org.uk/diary-of-a-green-deal-provider/
16
17. Green Deal for Business
• Always envisaged that Green Deal could be used by
business
• Limited number of Green Deal for Business assessors
• Lot of potential demand
• Very early days
17
18. Local Authority GD initiatives - 1
Birmingham
• £75m Prudential borrrowing
• £25m from ECO (Energy Company Obligation)
• Will fund Green Deals directly and be repaid through
electricity bills
• Intention to aggregate and issue bonds
• Appointed Carillion as exclusive delivery partner
• 8 year framework contract worth up to £600m
• Aim to retro-fit 60,000 houses plus non-domestic buildings
• Commitment to create local jobs
18
19. Local Authority GD initiatives - 2
Leeds & 10 surrounding local authorities
• £100m over first 3 to 4 years
• 12,000 houses
• Likely to appoint a delivery partner in May
Similar initiatives in:
• Newcastle
• Sussex
• London
Cambridge looking to create a sustainable energy fund to finance
retro-fits and sustainable generation projects
19
20. Issues with Green Deal
• Max loan of £10,600 under Golden Rule at 7% 25
year loan
• Quality of GD Assessment (2 day training)
• Potential scams (already happening)
• Subsequent property buyers not liking GD liability
• Potential for massive disappointment if savings are
not delivered
– a mis-selling scandal waiting to happen?
20
21. Green Deal questions
• Is the demand there? / How do we create demand?
• Will demand be created in segments that need it
most e.g. fuel poor?
• Why borrow at 6.96% when you can use:
– Personal loans from 5%
– Re-mortgage at 1.75 to 2.5% (initial rates)
– Savings currently earning very low rates?
• Will savings be delivered?
21
22. Green Deal summary
Green Deal launched!!!
• Activity increasing
• Early days
• Potential issues with demand
– Conversion rate from Assessment to Green Deals?
– Assessment and implementation rate once early DECC
supported GDAs are completed
• Local Authority led model is promising
22
23. ECO – Energy Company Obligation
• A licence condition for suppliers with:
> 250,000 domestic customers
> 400 GWh electricity supplied to domestic customers
> 2,000 GWh gas supplied to domestic customers
• 1 January 2013 to 31 March 2015
• Replaces previous schemes (CERT and CESP)
• ECO obliges suppliers to spend on efficiency relative to
energy supplied
• c.£1.3 billion per annum
• ECO money can be used to supplement Green Deals
– Assists with ‘hard to treat’ and expensive situations like external
wall insulation
23
24. ECO has 3 components
Carbon Saving Obligation
• Solid wall and hard to treat cavity wall insulation that
can’t be financed under Green Deal
Carbon Saving Communities Obligation
• Insulation measures in specified low income areas (15%
of each company’s obligation)
Affordable Warmth Obligation
• Insulation and heating measures to consumers in private
tenure properties receiving benefits e.g. elderly, disables
and families
24
25. ECO brokerage
• Fortnightly auction
• Green Deal providers sell ‘lots’ of future ECO delivery
to energy suppliers
• 6 auctions by end of March
• Total value £68.9 million to date
• Energy suppliers very keen to deploy ECO funds
25
26. Green Investment Bank
• Formally launched November 2012
• £3 billion to deploy in 3 years
• Aims to ‘crowd in’ private investment
• 3 areas of focus:
– Off-shore wind
– Waste to energy
– Non-Domestic Energy Efficiency (NDEE)
• Must invest alongside market on market terms
• No soft capital
26
27. GIB NDEE progress
• Selected 2 NDEE fund managers
- £50m allocated to SDCL
- £50m allocated to Equitix
• Fund managers have to source deals and matching
capital
• Deals size £500k to £30m
• Deals > £30m will be done directly by GIB
27
28. GIB NDEE progress - 2
• £5m EPC project for Kingspan
• Working on a development model with Greater
Manchester
• £50m committed to Aviva REalM Energy Centres
Fund
– Fund has invested in 1st project (£36m - £18m from GIB)
• Cambridge University Hospitals NHS Trust
• Biomass boilers, CHP and heat recovery from medical waste
incineration
• Energy centres rather than end-use energy efficiency
28
29. GIB issues
• Lack of soft money to assist development process
• Lack of skills developing large scale projects in supply
chain and end-users
• Fund managers relatively passive
• Relatively expensive money
• Paradox of ‘addressing market failures’ by investing
alongside the market
29
30. Other Local Authority initiatives
Peterborough ESCO -
• Owned by Local Authority
Scope:
• Green Deal
• NDEE
• Renewable projects
• Collective purchasing
• Energy supply to local consumers
• Sell excess power to grid
Achievements
• Solar PV framework (1 MW installed)
• EPC procurement framework due May 2013
30
31. Other initiatives
Royal Bank of Scotland
- £200m corporate energy efficiency fund
- Draws on government’s Funding for Lending scheme
- Borrowers must have revenues > £25m
- 5 to 7 year tenor
31
32. Summary and conclusions
Green Deal launched
• Activity increasing
• Early days
• Potential issues with demand
• Local Authority led model is promising
Green Investment Bank launched
• NDEE a key area
• Early days
• Need to increase flow of investment quality deals
• Still need to access long-term low cost funds
Some other interesting developments
• Peterborough ESCO
• Many other Local Authorities gearing up to create ESCOs
• Royal Bank of Scotland allocation of £200m
32
Now – show me the moneyAs an aside Boulton & Watt who are pictured here – made their money by implementing energy efficeincy – the Watt steam engine was much more efficient than the existing technology and saved coal mine owners a fortune. Bolton & Watt had the first example of shared savings deal – they took a % of the savings over a long term contract.Now I am going show you some big numbers