Annex 1 Project Reports COUNTRY/SECTOR REPORTS Table A.1 lists the final reports describing the project results for each country and sector. These contain the detailed case study descriptions and have been submitted to the Commission in November 2000 alongside this final report. Table A.1 Country/sector reports Title Authors Date Barriers to Energy Efficiency in the UK Higher Steve Sorrell August 2000 Education Sector Barriers to Energy Efficiency in the UK Brewing Sector Barriers to Energy Efficiency in the UK Mechanical Engineering Sector The Irish Higher Education Sector Steve Sorrell September 2000 Steve Sorrell October 2000 Fergal Trace, Sue Scott & Eoin O Malley October 2000 The Irish Brewing Sector Eoin O Malley October 2000 The Irish Mechanical Engineering Sector Sue Scott & Eoin O Malley October 2000 Energy Service Companies in Ireland Sue Scott August 2000 The German Higher Education Sector Joachim Schleich & Ulla Boede The German Breweries Sector Joachim Schleich, Ulla Böde, Katrin Ostertag & Dr. Peter Radgen The German Mechanical Engineering Sector Sector report on Energy Service Companies in Germany Joachim Schleich & Ulla Boede Dirk Koewener & Joachim Schleich September 2000 October 2000 October 2000 October 2000 INTERIM PROJECT REPORTS Table A.2 lists the other reports produced during the project 185
Table A.2 Interim project reports Title Authors Date Characterising the UK brewing sector Steve Sorrell July 1998 Characterising the UK further and higher education Steve Sorrell August 1998 sector Characterising the UK mechanical engineering Steve Sorrell August 1998 sector A taxonomy of barriers and suggested measures Steve Sorrell November 1998 Interview protocol for the higher education sector Steve Sorrell February 1999 Country report for Germany: mechanical Joachim Schleich July 1998 engineering Country report for Germany: breweries Joachim Schleich July 1998 Country report for Germany: institutes of higher education Joachim Schleich July 1998 Country report for Germany: energy efficiency Edelgard Gruber, Leif July 1998 policy 1998 Lastig, Wilhelm Mannsbart, Katrin Ostertag, Joachim Schleich Transaction costs of raising energy efficiency Katrin Ostertag February 1999 The Irish Third Level Education Sector Sue Scott, Eoin O Malley, July 1998 Fergal Trace & Fergal Shortall The Irish Brewing Industry Sue Scott, Eoin O Malley, July 1998 Fergal Trace & Fergal Shortall The Irish Mechanical Engineering Sector Sue Scott, Eoin O Malley, July 1998 Fergal Trace & Fergal Shortall The Policy Environment for Irish Energy Sue Scott, Eoin O Malley, July 1998 Fergal Trace & Fergal Shortall Selection criteria for case study organisations Sue Scott, Eoin O Malley & Fergal Trace, November 1998 186
Annex 2 Dissemination of Results The following sections discuss the dissemination work carried out to date and that planned for the immediate future. Owing to the late completion of the research, much of the dissemination planned in the project programme could not be carried out during the duration of the project. However, we hope to disseminate the project results more widely in 2001. DISSEMINATION TO DATE UK All the organisations participating in the project were sent drafts of those sections of the case study reports relevant to their organisation. Some valuable comments were received which have been incorporated into the final texts. The UK Brewing & Licensed Retailers Association (BLRA) has been very cooperative in allowing SPRU to conduct a postal survey on energy management in UK breweries. The BLRA was sent a draft of the UK brewing report and their comments have been incorporated into the final texts. The BLRA is interested in circulating the report to its members. Energy efficiency currently has a very high priority within the sector as the BLRA is engaged in negotiating legally binding energy efficiency targets with the government. The BLRA were therefore very interested in (and critical of) the discussion on negotiated agreements in the brewing report. A draft copy of the brewing report has also been sent to AEA Technology who are involved, on behalf of the government, in negotiating the brewery sector agreement. Draft copies of the UK higher education report have been forwarded to relevant individuals at the Higher Education Funding Council for England (HEFCE) and the Building Research Establishment (BRE). HEFCE is currently developing a follow-up to their earlier Value for Money study of energy management in higher education (see the UK higher education report). The results of the BARRIERS project are highly relevant to this work. A meeting will be scheduled in the near future to discuss the research results. SPRU has joined the Energy Share Fair network, organised by the BRE for UK universities. This runs regular workshops for university energy managers together with an email network. The aim is to provide a forum for sharing ideas, information and experience. The BARRIERS project has been publicised through this network. A follow-up meeting was held with one of the UK case study universities to discuss how energy management within the organisation could be improved. As a result of this, the university has purchased monitoring & targeting software and is improving the accuracy of its energy information systems. SPRU hopes to assist the university further in the future. 187
Germany All the organisations participating in the project were sent drafts of those sections of the case study reports relevant to their organisation. The comments received have been incorporated in the final texts. A paper on Barriers to the Rational use of Energy in Universities was presented at the OPET conference on environmental management in universities, held in Dortmund 22-23 September 1999. This conference was organised by the German research institute BEO-Juelich and financed from the Ministries of Technology and Economics. ISI is in contact with the Austrian Initiative for Energy Efficient Universities, based in Vienna, who are very interested in disseminating the results of the research. ISI has joined a network of German universities which aims to share information on energy, waste and water management. They are very interested in disseminating project results. Ireland Twenty organisations in Ireland participated as case studies and each received a copy of the report relevant to their sector. Responses were generally positive. For example, one interviewee from the higher education sector stated that they had found the report most interesting and added I hope your work will be put to good effect I think your approach was correct and the conclusions and policy responses make sense to me. The Irish Energy Centre received all four reports and commented on each one separately. With regard to the report on the Brewing sector, the Centre was supportive of the overall content. The Centre tended to agree generally with the thrust and intent of the main conclusions of the report on Mechanical Engineering. On the Higher Education report the Centre felt that in the conclusions it should be stated that more external support should be provided, especially to the smaller institutions. This recommendation was incorporated. With regard to ESCOs, the Centre stated that issues raised would concur with their experience. International Through the IEA representative in our project steering group, John Newman, the project team was invited to contribute to the IEA Workshop on Technologies to Reduce GHG Emissions, 5-7 May 1999, in Washington. This invitation was followed by Katrin Ostertag (ISI) - despite the fact that the EU was unable to make funds available for travelling outside Europe. This activity replaced the meeting with EUsponsored energy modellers, proposed in the project programme. The central theme of the workshop were engineering-economic analyses of energy conservation. "Discussion hotspots" comprised the quality of model input data esp. with respect to an appropriate representation of barriers, the role of non-price policy, socio-economic perspectives in policy evaluation, as well as co-benefits of energy 188
efficiency. These issues were discussed for the different end-use sectors. In the session on the industrial sector (concurrent session 2b) Katrin Ostertag presented a paper on the Transaction costs of raising energy efficiency 1. Based on three case studies the paper provided some more concrete empirical evidence on transaction costs and their absolute and relative importance. The presentation incited a rather lively discussion in the concurrent as well as in the subsequent plenary session. The controversial issues related to transaction benefits, opportunity costs of search time resp. of not searching, and the size of transaction costs relative to the error bounds of technology costs in engineering economic models. In the follow-up to the conference two of the lead authors of Chapter 5 of the IPCC Third Assessment report, who were also present among the conference participants asked Katrin Ostertag to provide input to this chapter. FUTURE PLANS Project team The project team are discussing how to turn the project results into scientific papers in refereed journals. At present, two papers are planned: A theoretically based paper, using the framework set out in section 3 of this report; and A more empirical paper, applying the theoretical framework but focusing on the results in the higher education sector. The journals under consideration are Energy Policy, Climate Policy and Energy & the Environment. UK SPRU intends to make the final project report and the supporting country/sector reports available on the SPRU website. The UK higher education report will be publicised through the email network of the UK Energy Share Fair, thereby making it available to university energy managers. SPRU has had preliminary discussions regarding a short article on energy management in higher education for the UK Energy & Environmental Management journal. SPRU has good contacts with the publisher Edward Elgar, through having published a book in their environmental economics series. Elgar have indicated that they would be interested be publishing a book based on the BARRIERS project results. However, this offer could only be taken up if salary support could be obtained. 1 The paper can be downloaded from the internet (www.iea.org/workshop/engecon). 189
Germany A paper reporting the results from the German higher education sector will be presented at a conference on A Sustainable Higher Education Sector, to be held in Hannover on the 17-19 November, 2000. A proposal has been submitted for the 2001 meeting of the European Council for an Energy Efficient Economy (ECEEE). The paper is based on the project results and titled Opportunities and barriers for energy services - a comparative analysis for the German brewery and university sectors A proposal has been submitted for a presentation at the Association of German Engineers Annual Meeting, to be held in Cottbus in March 2001. The paper is (again) Opportunities and barriers for energy services - a comparative analysis for the German brewery and university sectors Ireland A presentation of the main findings of the project in Ireland will be made to the Steering Group of the Energy Policy Research Centre of the Economic and Social Research Institute, during November. The Steering Group consists of representatives of the Department of Public Enterprise (which is charged with energy policy) and of the major energy suppliers in Ireland. ESRI personnel involved with this project are currently considering the options for editing the material in order to produce a book on BARRIERS in the Irish setting. This work might be accepted for publication in the series of the Economic and Social Research Institute in Dublin. 190
Annex 3 Comparison of planned activities and work accomplished ACHIEVEMENT OF OBJECTIVES The main achievements of the project are an improved understanding of the nature and importance of barriers in different contexts, and recommendations for the design of policy packages to overcome such barriers. The project has achieved the broad objectives set out in the project programme. These include: To determine whether such barriers exist, what form they take, and their relative importance in different contexts. To assess whether the primary reason for not exploiting cost effective opportunities is the existence of true market failures such as may derive from the public good attributes of information, or whether it represents a rational response to either the financial risk associated with energy saving investment or the existence of real but hidden costs. To assess the effectiveness of different policy measures for delivering energy efficiency improvements. To assess the scope for energy service companies (ESCOs) to overcome the identified barriers. The complexity of organisational decision-making and the limitations of the qualitative, case study approach meant that assessing the relative importance of different barriers proved very difficult. In particular, it was not possible to quantify hidden costs, such as the overhead costs of energy management. This meant that the project was unable to determine, with any precision, the extent to which organisations were behaving rationally in rejecting energy efficient technologies. Such an assessment would be very difficult to do and the answer is likely to depend very much on the context. It is, however, of fundamental importance for the efficiency gap debate. Two additional objectives in the project programme were: To identify possible means of characterising barriers in energy-economic models. To assess how energy market liberalisation may influence the rate of energy efficiency improvement and the scope for policy intervention; The first of these was addressed in Katrin Ostertag s paper Transaction costs of raising energy efficiency and in contributions to the IEA Workshop on Technologies to Reduce GHG Emissions, 5-7 May 1999, in Washington. This is reported in Annex 2. The second was only addressed to a limited extent in the work, focusing in particular on the role of ESCOs in a liberalised energy market. The results of this are reported in section 7. 191
WORK CONTENT The content, conduct and sequence of the empirical research followed the project programme very closely. The two minor departures were as follows: UK policy environment: A report on the UK policy environment for energy efficiency was not completed during Work Package 1. However, each of the final country/sector reports includes a section on policy measures appropriate to the country and sector. The UK reports incorporate an extensive discussion of evolving UK climate policy, including a detailed analysis of the negotiated agreement process (see UK brewing report). Hence the requirements of this part of the work programme have been fulfilled. UK energy services industry: Reports on the energy service industry have been completed for Germany and Ireland, but not for the UK (section 7). Six interviews were conducted with representatives from the sector in the UK, but time did not permit the completion of a sector report. However, the results of the interviews were fed into a research proposal submitted to the UK Tyndall Centre on Climate Change, of which SPRU is a member. There is a strong possibility that the Centre will fund an 80k project on this topic next year. Three extra pieces of work were completed in the UK: UK brewery energy management questionnaire: To supplement the individual brewery case studies, a postal survey was undertaken of energy management in UK breweries. The survey provided a very valuable supplement to the interview evidence, and the results are contained in the UK brewing report. UK university energy management questionnaire: In a similar manner to breweries, a postal survey was undertaken of energy management in UK universities. Results are contained in the UK higher education report. Barriers to energy efficiency in the UK construction industry: As part of the UK higher education case study, some additional work was undertaken to explore the barriers to energy efficiency within new construction. This proved an extremely valuable illustration of both practical obstacles and theoretical concepts. Results are included in the UK higher education report. PROJECT TIMING Project timing departed substantially from the project programme. A five month extension was negotiated, with delivery of the final report at the end of July 2000. In practice, the reports were delivered three months after this date. Reasons for the difficulties with project timing include: The project team was originally informed by the Commission that the start date of the project was February 1998. At the initial project meeting in March 1998, we discovered that the contract had been signed earlier than anticipated and the actual start date was January 1998. This led to a 1 month delay before the project began. There were severe delays in the fieldwork, due to the difficulties encountered in scheduling interviews with several people in each organisation. Finding a clear day in the diary for up 192
to four people at a particular site proved very difficult. This was particularly the case in the university sector, as the interview programme coincided with both the summer holiday period and the busiest time of year for university Estate departments. Delays have been introduced through the preparation of new project proposals, particularly under Framework V. As contract researchers with no core funding, we must develop such proposals during the lifetime of existing projects. On reflection, the largest delays have been as a result of the thoroughness with which the work was undertaken, together with the additional work undertaken in the UK. As a consequence, a number of the project stages have taken longer than originally planned. However, we believe the work undertaken to date has been of high quality and provides the basis for making a distinctive contribution to the energy efficiency literature. DISSEMINATION OF RESULTS Current and future dissemination activities are outlined in Annex 2. As a consequence of the problems with project timing, some of the dissemination plans outlined in the project programme have not been undertaken. Specifically: a) a policy brief has not been produced; b) it has not been possible to hold a final project workshop in Brussels; and c) the publishable version of the final report is not yet available. We would like to discuss the last of these points at the project meeting. A workshop and/or policy brief is not possible without additional funding. The other dissemination activities have either been completed or are planned for next year. In particular, we intend to published at least two papers in academic journals (Annex 2). 193
Annex 4 Energy Efficient Technologies Table A.3 List of energy efficient technologies used in the higher education case studies Area Space heating Lighting Plantroom Building fabric Electrical Technology/technique Use of Building Energy Management System? Programming heating and ventilation controls to match occupancy patterns and/or temperature? Ensuring thermostats and temperature sensors are located in the correct place? Installation of thermostatic radiator valves? Improvements to the zoning of heating areas? Restricting use of portable electric heaters? Use of compact fluorescents? Replacement of 38mm fluorescents with 26mm? Use of high frequency electronic ballasts? Use of photocell, acoustic or movement sensors? Lighting controls integrated into Building Energy Management System? Use of boiler sequencing controls? Insulation of pipes, valves and flanges? Replacement of oversized boiler plant? Replacement of central generation of hot water with point of use applications? Installation of condensing boilers? Installation of CHP? Fitting door closers to external doors? Specification of insulation standards in new buildings that exceed the building regulations? Installation of secondary or double glazing on refurbishment? Retrofitting insulation to walls and roofs? Draught proofing of windows and doors? Power factor correction Use of variable speed drives (VSD) in pumps, fans and other applications Automatic switch off of fans & pumps when the equipment they serve is not in use Specification of high efficiency motors on motor replacement Specification of high efficiency office equipment (e.g. power down facilities on computers)? Specification of high efficiency catering equipment? 194
Table A.4 List of energy efficient technologies used in the brewing case studies Area Brewing processes Packaging Refrigeration Boilers/steam Lighting Electrical Compressed air Technology/technique Insulation of process plant and storage vessels Additional heat recovery from wort cooling Brewing at high specific gravity Reduction in wort boiling time Copper vapour heat recovery Steam eductor recompression of wort vapour Mechanical vapour recompression of wort vapour Variation of washing cycle with size of cask/keg Cask/keg line heat recovery Bottle washer/pasteuriser heat recovery Increase in beer racking temperature Improved systems for accurate temperature control Placing maximum cooling duties at night Refrigeration heat recovery Coolant storage via ice tank or hydrated salts Insulation of pipes, valves and flanges Condensate recovery Boiler blowdown heat recovery Use of boiler sequencing controls Recovery of flash steam Oxygen trim controls Installation of economiser CHP Replacement of mercury discharge lamps with fluorescents or high pressure sodium Replacement of 38mm fluorescents with 26mm? Replacement of tungsten filament lamps with compact fluorescents Use of photocell, acoustic or movement sensors to control lighting? Use of high frequency electronic ballasts? Integration of lighting controls into Building Energy Management System (BEMS)? Power factor correction Use of variable speed drives (VSD) in pumps, fans and other applications Automatic switch off of fans & pumps Specification of high efficiency motors on motor replacement Regular inspection and repair of leaks Generation of air only when needed and at minimum required pressure Consideration of energy consumption when purchasing new compressors Pre-cool inlet air/duct from outside Compressor heat recovery 195
Table A.5 List of energy efficient technologies used in the mechanical engineering case studies Area Building fabric Boilers/heating Lighting Compressed air Heat treatment Electrical Technology/technique Fitting windows with double or secondary glazing? Fitting door closers to external doors? Draughtproofing windows, doors & rooflights? Use of plastic or forced air curtains in loading bays? Retrofitting insulation to walls and roofs? Installation of fans in high ceilinged rooms to reduce temperature gradient? Use of boiler sequencing controls? Installation of thermostatic radiator valves? Use of weather compensation & optimum start controls? Insulation of distribution pipes, valves and flanges? Use of Building Energy Management Systems (BEMS)? Programming HVAC controls to match occupancy patterns? Replacement of central generation of hot water with point of use application? Use of high frequency fluorescents in new & replacement fittings? Replacement of tungsten filament lamps with compact fluorescents? Replacement of 38mm fluorescents with 26mm? Replacement of fluorescents with SOX/SON discharge lighting? Use of localised task lighting in preference to general lighting? Use of photocell, acoustic or movement sensors? Installation of time controls with manual override? Integration of lighting controls into BEMS? Consideration of energy consumption & part load operation when purchasing new compressors? Pre cool inlet air or duct air from outside? Regular maintenance & condition monitoring? Generation of compressed air at the minimum required pressure? Switch of when there is no demand for air? Regular inspection & elimination of leaks? Compressor heat recovery? Insulation of furnaces to economic thickness? Accurate control of furnace temperature, pressure and air/fuel ratio? Heat recovery from furnaces & process plant? Power factor correction? Specification of high efficiency motors on motor replacement? Ensuring replacement motors are not over sized? Automatic switch off of pumps, fans, conveyors & other equipment when not required? Use of variable speed drives (VSD)? Purchase of energy efficient computers, photocopiers & other office equipment? 196