croenergy paper about tipperary serve project

© SERVE Project, 2013

CROENERGY 2013

www.servecommunity.ie

SERVE-ING TIPPERARYRESULTS & LESSONS

PAUL KENNY

SERVE REGION

© SERVE Project, 2010

Rural Region

CORE PROJECT ACTIVITIES

Retrofitting for Existing Houses and Buildings

New Buildings

Renewable Energy Supply

Monitor and prove results

Research on socio-economic impacts

and sustainable electricity options

Train/Educate people

© SERVE Project, 2010

© SERVE Project, 2010

400Retrofits

50New Builds

73,000m2

© SERVE Project, 2010

600 Wood Stoves

950 m2 Solar Panels

2,000kW Biomass

© SERVE Project, 2010

40,000,000 pieces of

Energy Data

100’s of House Visits

Many Cups of Tea

RESULTS

© SERVE Project, 2010

€4.1m in Grant Aid

11% IRR

13% increase in Biomass

Use

© SERVE Project, 2008

A1 A2 A3 B1 B2 B3 C1 C2 C3 D1 D2 E1 E2 F G0%

5%

10%

15%

20%

25%

NationalTipperarySERVE Pre Upgrade

SERVE MONITORED HOUSES – PRE UPGRADE

EXCELLENT GOOD VERY POOR

SERVE MONITORED HOUSES – POST UPGRADE

© SERVE Project, 2008

A1 A2 A3 B1 B2 B3 C1 C2 C3 D1 D2 E1 E2 F G0%

5%

10%

15%

20%

25%

30%

35%

40%

National

Tipperary

SERVE Post Upgrade

Notable Shift towards B3 / C1

Using National & SERVE BER Databases

EXCELLENT GOOD VERY POOR

NOW AND THEN

• Now a National Retrofit Programme and Grant Supports which have many similarities to SERVE structures• No supports for retrofitting of homes

• 200 construction people trained on quality standards• No training on retrofitting

• SERVE has 40 million data points on energy consumption in dwellings (retrofitted and new buildings)• No data on energy performance of dwellings

• 1.5MW of biomass heating in place on Heat Supply Contracts. ESCO Model Development• No Biomass Heat Supply Contracts in Place© SERVE Project, 2010

LESSONS LEARNED

• Understand what needs to be done.

• Understand why it is not being done.

Then work hard on eliminating barriers!

© SERVE Project, 2010

√√

SMART PROCUREMENT

• Public sector evolving to procure services vs product

• Procure ‘Heat Supply’ or ‘Energy Service’

• One of first in Ireland• Benchmark for full

ESCO development in Ireland

• National Fund Developed

© SERVE Project, 2010

SMART MANAGEMENT

© SERVE Project, 2010

• SERVE – Data and process management key.• SERVE – Retrofit 400 Dwellings in 3 years.• 2013 Social housing Retrofit 500 dwellings in 4

months.• Systems needed to increase pace – integrate:

• Owner/ Tenant• Surveyor/ designer• Procurement• Timeline• Health & Safety• Quality• Financial management

Tipp Energy Agency Solution

Building Professional-BER Assessor- PI insurance- Surveyor/ Civil/ Arch.tech- PSDP

Panel of Contractors:-Annual contractor tender-Standard specification-Schedule of rates (per meter etc)

Housing DatabaseBuilding Survey- Energy Requirements- Rented housing

standards- Condition survey- Measurement

Funding Availability

Inspection process with Building Professional

Automatic Management of TCC/ C2

QA Management of each contractor

P.O. / payment admin

Tenant Liaison

List of Upgrade Requirements

Social Housing Upgrade

Management System(WEB-Based)

SMART MANAGEMENT

© SERVE Project, 2010

SMART FINANCING

• Public & Private Bodies may need finance.• Understand where risk is - Put it where it can be

managed.• SERVE domestic retrofit 11% IRR – not

financeable.• ESCO applicability smaller than many hope

• Low payback, Low finance costs and Low transaction costs are needed.

• ESCO useful for expertise – or where traditional finance unavailable

© SERVE Project, 2010

SMART FINANCING

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%0

5

10

15

20

25Simple Payback (yrs) With Rising Interst rates

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Interest Rate

Actu

al P

ayb

ack

Discounted Payback

© SERVE Project, 2010

CONCLUSIONS

• What needs to be done is clear • We need to be very smart about how to

do it.• We need to subsidise (obligation) and/ or

Tax alternative, as golden rules will ensure failure.

• We need to add scale +200% per year for 10 years!

THANK YOU

© SERVE Project, 2010

.Paul KennyChief ExecutiveTipperary Energy AgencyT: +353 527443090E: pkenny@tea.ie W: www.tea.ie