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  1. 1. Best Practice Energy, Cost &Carbon ReductionStephen BarkerHead Of Energy Efficiency & Environmental CareSiemens plc, Industry Sector Copyright ©Siemens AG 2011. All rights reserved.
  2. 2. Agenda Introduction Policy landscape“ Best Practice” approach Financing energy efficiency solutions Example Summary Siemens plc, 2011
  3. 3. Proposition: Siemens Energy Solutions Save 10 – 30% of the facility energy and utility spend – with attendant carbon reduction benefits. Without capital investment Simultaneously provide a positive cashflow contribution”. Siemens plc, 2011
  4. 4. Our Credentials: No1 In The Dow Jones Sustainability Index No1 in the Carbon Disclosure ProjectLeadership Index Carbon Trust Standard CAESER Environmental portfolio - €28 billion in 09/10 Saved our clients around 270M TonnesCO2e through 2010 Siemens plc, 2011
  5. 5. Introduction:The Policy Landscape Drives Concrete Measures Global, EU & UK Policy EU Regulation & Standards UK Specific Measures Kyoto Proocol and targets on Eco Design directive (“EuP” & Climate change levy (CCL) “ERP”) greenhouse gas reduction Energy performance of Climate change agreements IPCC reports buildings directive (CCAs) Stern report on the financial Landfill directive Renewable obligations, implications of climate Waste Incineration directive ROCs and FITs (WID) change Measuring instruments Renewable heat incentive UK government targets – directive (MID) (RHI) 80% CO2e reduction by 2050 Environmental permitting Building regulations – “Part programme. UK energy policy L2” European emissions trading Climate Change Act scheme (EU ETS) Carbon reduction International standards:-. commitment (CRC EES) Low carbon strategy: EN 16001 Enhanced capital Transport EN 15232 allowances (ECAs) Manufacturing Pr EN 15900 Landfill taxSelected examples only Siemens plc, 2011
  6. 6. Best Practice Energy, Cost & Carbon Reduction Systematic strategy : • Measure and monitor • Automation and Control • High efficiency products and solutions • Low carbon and renewables • Innovative finance solutions Siemens plc, 2011
  7. 7. A “Best Practice” Approach To Energy EfficiencyTools and processes existto facilitate this systematic Consultancy led • A systematic approach approachcontinuous improvement delivers maximum cost andprogramme carbon reduction. • This process forms the basis of a long term continuous improvement programme. • Simplifies environmental compliance issues • Aligned with requirements of the international energy management standard BS ISO 50001 / BS EN 16001 • 400% savings compared toLogical structure and Ongoing consultancy an ‘ad hoc’ approach support to overseeproject sequence implementation Siemens plc, 2011
  8. 8. Financing Energy Efficiency & Carbon Reduction Projects• Grants? (LEPs, Regional organisations?...)• Carbon trust loans (New – April 11)• Salix – public sector loans?• Green deal / GIB?• Private sector finance• Enhanced capital allowances (ECAs)• SFS Siemens plc, 2011
  9. 9. Examples Propositions -Illustrative Food & Beverage Facility (Dairy) Energy costs reduced by £1.0M (36%) per year Carbon emissions reduced by 4, 500 tonnes (35%) Projects cost £1.9M with payback in 23 months Financing: Monthly financing costs = £60k Reduction in utility costs = £83k Net cashflow contribution = £23k / month After 3 years, client enjoys full benefits Compliance with energy and environmental regulations Siemens plc, 2011
  10. 10. Summary Of Proposition Starting point is expert energy audit – typically 5 to 10 days per facility: Systematic evaluation of historical consumption data and can include energy balance / water balance etc Review of regulatory issues Evaluation of key opportunities and recommendations Preparation for continuous improvement programme Recorded in the Siemens Energy Navigator Proposition for implementation phase & solution delivery Options for zero capital investment with positive cashflow contribution Siemens plc, 2011
  11. 11. Best Practice Energy, Cost &Carbon ReductionStephen BarkerHead Of Energy Efficiency & EnvironmentalCareSiemens plc, Industry Sector Copyright ©Siemens AG 2010. All rights reserved.