2012.06 Final Energy Efficiency In He Is

Association for the Conservation of Energy

ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org

The impact of energy efficiency and opportunities for demand reduction in HEIs

Darryl CroftSenior Researcher


Presentation to the TEC Regional Conference 2012Imperial War Museum

27 June 2012


Presentation message• Positive story:

We are successfully reducing energy demand in the UK

• Lots of opportunities for further reductions + numerous reasons why all sectors, including the public sector, should look to reduce their energy demand, implement efficiency, and adopt better energy management practices.



About ACE• We exist to:

“reduce overall energy demand to ensure a secure and sustainable energy future”

• We do this by lobbying, campaigning and carrying out research to achieve sensible and consistent policy, legislation and targets

• ACE is no ordinary trade association - we don’t push or research specific products or technologies

• We research and push for strategic policy and specific legislation that saves final energy use



For example…This past week ACE have been involved in:• The European Commission’s Reasoned Opinion on the UK’s reduced VAT

rate on ‘Energy Saving Materials’“VAT on ‘Energy Saving Materials’ in a nutshell” summary

• Pushing Government to include energy demand within the draft Energy Bill and Electricity Market Reform proposals

• Generating support for the Energy Bill Revolution campaign that would see revenues from the EU ETS and CPF recycled to consumers in the form of energy efficiency support

• Looking at how energy efficiency can offset increases in domestic energy bills.


http://www.ukace.org/Energy-saving%20materials





http://www.energybillrevolution.org/


Members

www.ukace.org


The ‘good’ message

“The cheapest, cleanest and safest way of addressing our energy policy objectives is to use less energy.”

- Energy White Paper, 2003


Energy Objectives

Reduced Carbon emissions

Improved Security of SupplyImproved Welfare/Productivity


The ‘good’ message

“The cheapest, cleanest and safest way of addressing our energy policy objectives is to use less energy.”

- Energy White Paper, 2003


Good for environment

Helps ‘keep the lights on’Lowers energy bills

Energy Objectives


“People don’t want to have to use less energy”

“We’re using more and more energy in our lifestyles”

“Energy saving won’t stop the lights going out”

“If you improve efficiencies, people just waste more”

“The difference that improved efficiency makes is rather small”

=> Often viewed as ‘a bit woolly’ at best – something that it’s good to do, but that doesn’t make the world of difference.

The frequent messages



What have we achieved to date?



Global energy savings



EU 25 Energy Savings



UK Domestic Energy Savings


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Actual energy consumption

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Insulation energy saving


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Heating systems efficiency energy saving

Insulation energy saving


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Not just about avoided demand...

....last ten years have seen real reductions in the UK.



UK Energy Demand


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20022003

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Primary Energy Demand (temperature corrected)

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UK Energy Demand


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Service sector and Agriculture

Domestic


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UK Energy Demand


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Transport

Industry

Service sector and Agriculture

Domestic


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Energy Intensity


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Service Sector


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 -

2,000

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10,000

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Commercial sectorPublic sector

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29% reduction


Domestic Demand


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Energy Efficiency of Homes


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Domestic Lighting and Appliances


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“In 2006 National Grid’s forecast of peak demand for 2012-13, the year we are in, was 68 gigawatts. Their forecast now is 57 to 59 gigawatts. The principal reason for that is demand destruction. Two-thirds of it, at least, is due to energy efficiency. It has gone. ”


The story so far…• Improved efficiency has gone beyond negating some

additional demand:

across most sectors, the past 10 years has seen a reduction in energy demand in the UK

• This has been relatively easy and uncontroversial:– No huge lifestyle changes – No unpopular enforced technologies– Just sensible policies and regulations



Why ‘do’ improved efficiency and better energy management?



Why ‘do’ improved efficiency and better energy management?


Rising fuel prices

Environmental leadership

/CSR

Availability of low

cost/financeable opportunities

Availability of finance

Opportunity Drivers Mechanism


Efficiency measures at lowest cost


Opportunities for energy saving• Consume lots of energy

– 3,900 GWh gas => c.£125m/a– 3,300 GWh electricity => c.£395m/a

• 2010 report from Oakleigh Consulting Limited found that there was between £230m and £530m of potential efficiency projects across the HE estate

• Specific case studies later in the day



Still lots of uninsulated homes


Cavity walls Lofts Solid walls -

5

10

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25

7.5m

8.8m

7.7m

UninsulatedInsulated

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hom

es, m

illio

ns


Energy Prices


2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

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Electricity price

Gas price


Energy Prices



Policy Impacts• Estimated impact of energy and climate change policies on an

average medium-sized business user’s energy bill in 2020



Carbon Savings / CSR



Financing Mechanisms• Revolving Green Fund (RGF)

– a partnership fund between HEFCE and Salix Finance Ltd – aims to help higher education institutions (HEIs) in England reduce

greenhouse emissions– Institutions repay the funds through the savings they make – £30 million was available from 2008 to 2011 to provide recoverable

grants to institutions for projects that reduce their emissions. – 384 projects with lighting upgrades and motor controls the most

commonly undertaken projects (collectively accounting for approximately 25% of the total).

– Initial evaluation: If the current trajectory sustained, will lead to carbon and cost savings of up to 8.6% of current English HEI carbon emissions every year by 2020.



Financing Mechanisms• In the second phase (RGF2), £10 million is available over the

academic years 2011-12 and 2012-13

• Funds targeted in two areas: – small-scale energy efficiency programmes, and – retrofit projects, which will act as exemplars.

• In contrast to the first phase of RGF, HEIs will not be required to make an institutional contribution.



Green Deal?• Likely to be available to public sector organisations

• What is it?– No upfront cost to pay– Financed through energy bill over lifetime of measures (i.e. 25 years)– Based on assessment: determine measures for which repayments are

lower than savings: the ‘Golden Rule’– Assessment ‘tweaked’ for specific customer

• Why would you be interested? – Removes the need for upfront cost– Potentially longer repayment periods– Potentially easier to access this support– Measures protected by accreditation and redress regime



Green Deal?Differences with domestic Green Deal:

• Assessment:– Non-domestic buildings are more varied than domestic properties, – Assessment method will necessarily need to be more complex in order

to provide appropriate recommendations for the property. – Will build upon the existing SBEM methodology but will allow the

actual use of the building to be captured

• Measures:– Wide range for non-domestic buildings including:

lighting, ventilation, heating systems, insulation, chillers, variable speed drives, solar shading



Green Deal?• Golden Rule:

– more flexibility in the non-domestic sector – specialist assessments to provide a more detailed savings estimate,

taking account whole systems of measures and energy tariffs.– not proposing to limit applicable interest rate structures in the non-

domestic sector as businesses should be well equipped to ensure they are entering into a deal which best suits their needs.

– Expectation that Green Deals in the non-domestic sector will be shorter – to reflect payback in line with lease length

• Lots of scepticism about the Green Deal at the moment: we wait to see if it will be the “game-changer” we’ve been promised!



Conclusion• Energy efficiency is working

• There is lots still to do: including much of the low cost / easy stuff

• Public sector organisations have the opportunities, the drivers, and the means to finance energy reduction

• Implications of saving energy are huge:– Financially: hedge against (very likely) increases in energy costs– Environmentally: saving energy is cleanest and easiest way of

achieving energy objectives– Economically: organisations must remain competitive and could be

more productive– Socially: reduce fuel bills and help alleviate fuel poverty– Politically: hard to sustain decarbonisation agenda in face of rapidly

rising prices, unpopular technologies and uncompetitive businesses.ACE aims to reduce overall energy demand to ensure a secure and sustainable energy future

www.ukace.org


Thank you

Darryl Croft

Senior Researcher, ACE Research Team

[email protected]


mailto:[email protected]

2012.06 Final Energy Efficiency In He Is

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Transcript of 2012.06 Final Energy Efficiency In He Is