Download - W14 cutting carbon locally - dave allport
June 2011
Birmingham Energy Savers Local Government implementing the Green Deal
• Birmingham Energy Savers rationale
• BES Phased approach– Phases 1 & 2 – Roof
top generation– AIMHIGH– Phase 3 – whole
house refurb • Phase 3 Phase 3
procurement
Birmingham Energy Savers (BES)
• Cuts CO2 emissions• Cuts cost and level of energy used by homes and
businesses• Improves comfort and energy security• Cuts fuel poverty among tenants & home owners• Maximises job creation and investment through
capturing opportunities in the supply chain • Is self financing
Phases 1 & 2 Roof top generation
Phase 3 – Pathfinder
Phase 3 - Extension
Expansion Phase – Green Deal
Sep 2010 to Mar 2013 £14m = 2,100 properties (PV)
2012 – 2015 pathfinder programme£100m = 15,000 properties (Refurb & PV)
2018 -2020 extension programme£300m = 45,000 properties (Refurb & PV)
2018 -2026 Expansion£1b = 140,000 properties (Refurb / PV)
BES Phased approach
0
5,000
10,000
15,000
20,000
25,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
5
200,000 houses by 2026
Year
Houses/pa
End of Pathfinder
Re-procureBCC finance
Bank finance or warehouse
Green Deal plus Roof Rental
£5-7,000Roof rental
• Generation and export FIT
Free electricity (£100-200) pa
25 year Green Deal service charge
• Charge on energy bills• Help with hard to treat• Help with fuel poor
£5,000-£15,000
Lower cost energy bills
RenewablesEnergy efficiency
Green Deal
BES3 Operating Model
BES PP P3 Financing Model
Green Deal Paymentscollected via energy bill
Green Deal Payments (and Tariff)
Generator meter (if PV is fitted)
Benefits
Energy Companies
Surveying
Marketing
BES
I nstalling
Maintaining
DeliveryPartner
Green DealAgreement
Hard to treat subsidy (ECO)
BCC
Finance structure for Pathfinder
£25m
£100m
ECO
100%
BCC
5-6%
Illustrative
£75m
Cost per house - £6-7kNumber of houses = 15,000
Energy Companie
s
Long term fixed low
cost finance
Write-off
Borrowing(PWLB)
Hard to treat& fuel poor
ECO – Energy Company Obligation
Option 1 for extension phaseBanks provide non-recourse debt
£100m
£400m
ECO
25%
75%
BCC
Banks
7%
5-6%
Illustrative
£300m
Cost per house - £6-7kNumber of houses = 15,000
6.5%
£75m
£225m
Energy Companie
s
Long term fixed low
cost finance
Write-off
Low cost buffer
Non-recourse private sector
Hard to treat& fuel poor
ECO – Energy Company Obligation
Option 2 for ExtensionGreen Deal Warehouse refinance opportunity
Equity risk/buffer capital
Multiple LAs• New LAs can
join onto existing programme
• LAs make agreement with GD WH not with each other
Green Deal warehouse
ABS
BCC
NCC
?
?
£3-500m
Uniformity requirement
Bank finance including EIB
Illustrative
Potential role for GIB
Potential for BCC loan book to not to have to reach £75m before transferring loans to GDWH
The Challenge to Local Government; – Can you market the Green Deal– Can you build home owner trust– Can you deliver an anchor customer– Can you deliver customer aggregation
(localities and triggers)– Can you grow the green economy– Can you meet procurement and start up costs– Can you secure the borrowing and refinance
Issues
www.birminghamenergysavers.org.uk
Thank You