Carbon Management for energy and cost efficiency. Paul Wedgwood General Manager, Scotland Carbon Trust Programmes All Energy, May 21 st 2014

Transcription

1 Carbon Management for energy and cost efficiency Paul Wedgwood General Manager, Scotland Carbon Trust Programmes All Energy, May 21 st 2014

2 Agenda 1. About the Carbon Trust 2. About Carbon Management The five step process Engagement across the UK public sector Ambitions and targets 3. What s been achieved? What does success look like? A few examples.. 4. Revisiting Carbon Management Plans. What are the key challenges and trends? What s next for Carbon Management?

3 The Carbon Trust An independent, impartial not for profit group with the mission to accelerate the move to a sustainable, low carbon economy

4 The Carbon Trust The Carbon Trust was set up by government as an independent, public good company Our mission is to accelerate the move to a sustainable, low carbon economy We work with organisations to reduce carbon emissions, making savings in energy and other costs; and to help develop commercially viable low carbon technologies to reduce future emissions

5 Carbon Management: A highly structured and results driven approach 5 year carbon reduction strategies Mobilisation phase Measure baseline & set targets Identify, quantify & prioritise opportunities Develop Implementation Plan Implementation phase

6 Carbon Management in the Public Sector Over 600 large public sector bodies have worked with the Carbon Trust to develop Carbon Management Plans Including over 300 local authorities (among which are all 32 Scottish local authorities) Average Carbon Management 5% carbon reduction target is 25% over 5 years 0% Year by year increase in carbon management targets 30% 25% 20% 15% 10% 25% Average 5 year carbon reduction target 07/08 08/09 09/10 10/11 11/12 12/13

7 Why in the public sector? To help cut carbon emissions, in line with our mission To realise significant energy cost savings to the public purse To help complex organisations to comply with regulatory drivers To enable the public sector to lead by example

8 Other sectors expect public sector leadership Source: 2012 Carbon Trust commissioned survey responded to by over 1,000 Guardian newspaper readers

9 Energy savings identified in Scotland s public sector annual & lifetime Annual Energy Savings MWh (Total) Lifetime Energy Savings MWh (Total) Total: 2,119k MWh Number of recommendations: 4,986 Note: Building shell = fabric, building management systems and building electricity & water distribution systems Source: Close Out; Carbon Trust analysis Total: 20,378k MWh 9

10 Energy efficiency continues to makes good business sense - energy costs continue to rise Typical investment returns Energy efficiency 40-50% 'Typical' business investments Renewable energy (inc. subsidies) 10-15% 5-10% Source: Carbon Trust analysis Internal rate of return (%)

11 Saving carbon, saving money Public Sector progress to date All services, all years Projects implemented to date (UK) Carbon saved over project life 12m tco 2 Cost savings over project life - 426m net (total savings minus the project costs) Average payback period 5 years Projects in the pipeline? Identified carbon savings over project life >74m tco 2 Identified cost savings over project life - 2bn net (total savings minus the project costs) Expected average payback period range ~2-15 years

12 Barriers to implementation Five key issues affecting implementation rates of carbon-saving measures in Scotland s public sector: 1. Senior leadership and performance management 2. Engaging procurement functions- especially lifecycle costing, lack of trust/ knowledge in suppliers 3. Availability and access to financing 4. Lack of skilled resources- technical, comms, financial 5. Split incentives- especially schools and tenanted buildings

13 Further opportunities to save energy & reduce carbon emissions Projects with either longer payback (though many still have a significant positive NPV) or culturally/ organisationally hard to achieve: New ways of using space and delivering services shared space and space rationalisation- incl. shared space between organisations shared services - e.g. between neighbouring LAs, HEs or NHS Trusts new ways of providing services (e.g. remote healthcare, teaching, outsourcing) Major retrofit natural ventilation definitely underexplored waste heat recovery underexplored longer payback building fabric underexplored- recladding, glazing, etc. Procurement reforms lifecycle costing demand reduction new build standards operational energy targeting, beyond building regulations District heating and decentralised energy Area wide leadership (incl. low carbon cities) - enabling factors for much of above Source: Carbon Trust analysis

14 Examples of Carbon Management best practice 1.) Exceeding Carbon Management targets Oxford City Council targeted a 25% carbon footprint reduction and achieved it ahead of schedule 2.) Thinking big about next step Carbon Management projects On the foundation of its Carbon Management Plan Bristol City Council thought big about the highest possible impact next steps and is now exploring an ambitious portfolio of local renewable energy and district heating projects 3.) Driving Carbon Management across the borough Islington Council has used the successful implementation of their Carbon Management Plan to help provide a blue print and collaborative training programme for businesses across the borough

15 Revisiting Carbon Management Plans What s next? Top 5 key areas of focus 1.) Articulation of drivers for action to reflect latest corporate priorities 2.) Overhauled governance to focus minds on overcoming barriers 3.) More sophisticated approach to financial allocation strategies 4.) A broader view on Carbon Management - borough-wide / engaging supply chain partners 5.) Broadening the scope to a meet a heightened ambition resource efficiency

16 Engage with technology innovations for future savings Integrated design Build process Existing commercial measures Simplified energy modelling used for new build Dynamic modelling applied to selection of new build and refurbishment projects Predominantly traditional construction Sample details Manual inspection Illustrative innovative TINA measures More advanced modelling Measures to improve accuracy Incorporating building performance data into design tools. Moves to off-site construction Automated surveying and inspection tools Improved process for commissioning and handover Tools allowing correct sizing of building services Management and operation Programmable thermostats Reduce room temperature Optimise start times Thermostatic radiator values (TRVs) Lighting basic timers, turn off for 1 hour, presence detectors Energy management monitors Targeted real time energy usage information Greater use of hand-held devices for energy efficiency applets New investment and leasing models that overcome split responsibility between designers, contractors and building occupants Predictive controls Materials and components Traditional insulation materials Ventilation shafts and stacks Light-pipes & sun-pipes Triple glazing with coatings and insulating gases Optic fibre daylighting Switchable glazing Dynamic insulation and thin insulation products Free cooling systems (e.g. groundwater)

17 Adoption in other countries Low Carbon States México Low Carbon Cities Malaysia China

18 Final thoughts 1.) To succeed, a Carbon Management Plan must clearly demonstrate how it delivers against corporate priorities. And these priorities can change! 2.) It is essential for carbon managers (energy managers, sustainability officers, et al) can confidently articulate the business case (financial, reputational, scientific, etc.) for Carbon Management. May require learning a new language (to be able to give Finance Managers what they need to be confident to approve the business case) 3.) Sustaining visible senior management engagement is a challenge amidst competing priorities. 4.) Perhaps the greatest challenge of all is to embed a low carbon culture, a key foundation for wider resource efficiency. All too rare that there is broad ownership and mainstreaming of carbon management?

19 Thank you! For further information, just ask! Paul Wedgwood Tel: