Energy Efficiency – a brief summary

Lee EvansLee EvansAccount Manager

Agenda

1. Role of Carbon Trust Wales

2. Energy saving opportunities / ways to increase profit

3. Available support

2

Our mission is to accelerate the

We cut carbon now by

Providing specialist advice and finance

to help organisations cut carbon

accelerate the move to a low carbon economy

Setting standards for carbon reduction

We cut future carbon emissions by

Opening markets for low carbon

technologies

Leading industry collaborations to

commercialise technologies

Investing in early stage low carbon

companies

Drivers for Carbon Reduction

Cost savings and volatile and rising energy prices

Security of supply

Financial incentives (Carbon Trust interest free loans, Green Deal, Green Investment Bank, FITs, RHI)

Climate change mitigation

CSR

4

CSR

UK Target – 80% carbon reduction by 2050

Climate Change Strategy for Wales

Legislation

– Carbon Reduction Commitment

– 3% One Wales Reduction Target

– Devolved Building Regulations

We cut carbon now

Specialist advice

Finance

Setting standards

Business as usual in Wales for 2011/12

5

Setting standards:

Standard approach to organisation carbon footprint measurement

Rewards real carbon emission reductions and enables clear communication to customers

recognising carbon reduction in organisations

communication to customers and stakeholders

Early action benefits under the CRC Energy Efficiency Scheme

Currently awarded to over 200 organisations

Setting standards:

Standard, comparable approach to carbon footprinting of products and services

Rewards commitment to real carbon emissions reductions

recognising carbon reduction in products with The Carbon Footprinting Company

emissions reductions

Carbon Reduction Label awarded to more than 2,500 products and services

Product footprinting and labelling projects in USA, Europe and Asia

Energy saving opportunities / ways to increase profit

Assess potential for energy savings

Highlight areas where businesses can improve

Raise awareness of energy conservation amongst staff and motivate to reduce waste

Plan and take action

Energy saving opportunities in the Hospitality Sector

Switching off

Maintenance

Catering

30%

Space

Heating

26%

Maintenance

Refurbishment

Lighting

19%

Hot Water

13%

Cooling

6%

Other

6%

Computing

0%

Energy savings opportunities in the Hospitality Sector

Can reduce energy costs by 40%

Typically 20% reduction by implementing simple efficiency measures:

Savings Payback

6% <1 year

13% 1-2 years

Potential for Carbon/Energy Reduction?

40% Design & Asset ManagementE.g. Low CO2 new build, property rationalisation, procurement changes,

50%

60%

?%

RenewablesBiomass boilers, wind turbines, solar thermal

11

10%

20%

30%

Good HousekeepingE.g. M&T, awareness, training, regular inspection & audit

Invest to Save

E.g. Insulation, lighting, controls, heat recovery, CHP, plant replacement

rationalisation, procurement changes, targets for refurbishment

10%

10%

20%

Making the Financial Case

£15.0

£20.0

£25.0

DO NOTHING

WITH DISPOSALS

60% REDUCTION

12

£0.0

£5.0

£10.0

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

Year

£m

Barriers

Lack of:

Sustained senior commitment and funding Risk

Cashflow

Skilled personnel

13

Skilled personnelKnowledge and experience

Time

InformationAbsence of quality data

Perceived high risk and high costs of new technologies

Cost reduction opportunities and other key issues not well understood

Available support / information

Specialist advice

Finance

Publications

14

Finance:

Loans to help SMEs upgrade or replace equipment with energy efficient alternatives

£3,000 - £100,000 over 4 years

Interest-free Energy Efficiency Loans

Interest-free loans available to Welsh SMEs

Since 2003 businesses have saved approximately £80 million

Non-SME loans periodically available in Wales

available to Welsh SMEs in 2010/11

Finance:

Provides incentive to invest in energy-efficient equipment

Qualifying equipment specified on Energy Technology List (ETL)

Carbon Trust manages ETL on behalf

Enhanced Capital Allowances

100%first year tax relief on Carbon Trust manages ETL on behalf

of Government

Find out more on www.eca.gov.uk/etl

first year tax relief on qualifying expenditure

Publications

Green your business for growth (CTG039)

www.carbontrust.co.uk

Action Checklist

Publication Examples

Fact sheets

How to monitor your energy use (GIL157)

Understanding your energy consumption (CTL001)

Assessing the energy use of your building (CTL003)

Overviews

Sports and leisure (CTV006)

Heating, ventilation and air conditioning (CTV003)

Low temperature hot water boilers (CTV008)Low temperature hot water boilers (CTV008)

Refrigeration (CTV002)

Guides

Creating an awareness campaign (CTG001)

Heating control (CTG002)

www.carbontrust.co.uk

Carbon Trust resourcesAssess a woodfuel project’s viability, conduct outline design and act as an informed customer

Introductory guidance

Template contracts

20

www.carbontrust.co.uk/biomass

System design tools

Energy Reduction Strategy

% Energy Reduction Challenge (from baseline year)Commitment from top

Carbon reduction implementation plan

Energy management responsibility

Invest to save budget

Funding

21

FundingCarbon Trust specialist advice

Interest Free Loans / standard loans

Green Deal for Business

Green Investment Bank

Saving energy without compromising quality…

Main energy saving opportunities (heating, lighting, housekeeping)

Simple actions save energy, cut costs and increase profit margins

Support available

Typically 20% reduction by implementing simple efficiency measures:

Savings Payback

6% <1 year

13% 1-2 years