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CBI energy conference: Jake Ronay


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Jake Ronay, renewables programme manager, environmental team, Tesco Stores Ltd.

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CBI energy conference: Jake Ronay

  1. 1. How to develop efficient on-site generation
  2. 2. Our Corporate Climate Commitments “ The challenge of climate change can only be faced by collective action.  We want to cut our own carbon footprint and help suppliers and customers do the same.  We’ll be a zero carbon business by 2050 but only by working with our suppliers and others across the industry.” Work with suppliers and partners Lead by example: reduce our direct footprint Lead a revolution in green consumption: empower our customers A genuinely zero carbon business by 2050 Reduce CO2 impact by 50% by 2020 Best anywhere to standard everywhere       Sir Terry Leahy, Chief Executive Feb 2010 Our approach to climate change: Our climate commitments:
  3. 3. Our strategy has three parts <ul><li>Reducing our direct carbon footprint </li></ul><ul><ul><li>Halve emissions from existing and new buildings by 2020 </li></ul></ul><ul><ul><li>Halve distribution emissions per case delivered by 2012 </li></ul></ul><ul><li>Working with our suppliers to reduce emissions in our supply chain </li></ul><ul><ul><li>Reduce emissions by 30% by 2020 </li></ul></ul><ul><li>Leading a revolution in green consumption </li></ul><ul><ul><li>Help customers to halve their carbon footprint by 2020 </li></ul></ul>
  4. 4. Reducing our direct footprint <ul><li>We began by halving our energy use per square foot in the UK between 2000 and 2008. </li></ul><ul><li>We have saved16% of our total carbon footprint since 2006 through reducing our carbon intensity. </li></ul><ul><li>In January 2007 we set three major targets to reduce our footprint: </li></ul>Halve average emissions from new buildings by 2020 Halve distribution emissions of each case of goods delivered by 2012 Halve emissions from existing buildings by 2020
  5. 5. Halving emissions in our estate Energy efficiencies Low carbon natural refrigeration Renewable technologies
  6. 6. Ramsey: our first ‘zero carbon’ store Rainwater recycling LED lit car park Timber frame Natural ventilation Climate friendly ‘ natural’ refrigeration system Roof lights Electric car charging points Combined Heat and Power plant Energy efficiencies: 45%; Natural refrigeration: 25%; Renewable generation: 30%
  7. 7. Store and DC trials: Solar PV Small wind Solar hot water CHP – gas and biofuel Biomass Large wind What next… ? Energy from waste Research programme Test site Biomass On-site generation: progress to date
  8. 8. The right technology , at the right scale , and at the right speed Different technology adoption strategies are needed for small, large stores, Distribution Centres (DCs) and off-site applications. On-site generation: technology selection Customer and staff impacts Technology impacts Financial impacts Impact on customers Proven technology Capital Impact on environment Technology partners Return on investment Energy savings Diversity and Grid Independence Scalability Ease of installation Planning risk Government policy Maintenance Fuel supply and specification Speed of installation
  9. 9. On-site generation: what we have found Biofuel market and sustainability criteria still not developed Med- and large stores and DCs High energy and carbon impact, high fuel supply risk CHP – biofuel Still very high cost per MWh Med- and large stores and DCs Medium energy, high carbon impact Fuel cells Technologies still in ‘early adopter’ stage, high risk. Large scale plants exist, smaller scale still not proven High diversion from landfill, energy and carbon impact Energy from - waste Distribution Centres or off-site Highly scalable for off-site applications Low levels of generation at store scale Limited potential for retrofits Larger stores only, size of CHP is key to efficiency Right scale Customer and staff impacts Right technology Right speed CHP – gas Medium-scale energy and carbon impact Proven technology Solar Medium-scale energy and carbon impact FiT has improved paybacks, but still high capital cost per MWh Wind – small Turbulent environments may not be suitable Not yet proven at this size, still high cost per MWh Wind - large Medium energy, high carbon impact Proven technology Biomass High energy and carbon impact, fuel supply risk Proven technology
  10. 10. <ul><ul><li>Investment in renewable generation is essential to achieve our carbon targets </li></ul></ul><ul><ul><li>Technology selection, sizing and operational strategy are key to efficiency and a good business case </li></ul></ul><ul><ul><li>Technology mix varies for stores, DCs and off-site </li></ul></ul><ul><ul><li>Government support – ROCs, FiT, RHI etc – can be a driver to greater efficiency if they are set correctly </li></ul></ul>Efficient on-site generation: conclusions