Saint-Gobain Innovation Centre

10 October 2016

Our SpeakersTime Topic Speaker Org/Co

10.05-10.10 Welcome and Scene Set Diana Davidson, Mat Lown CLEMG10.10-10.15 Intro and Venue Ben Griggs Saint Gobain

10.15 onwards Building Trust Debbie Hobbs & Malcolm Hanna L&GSmart Buildings Naghman Khan IESSmart Networks Meri Braziel Trilliant

11-11.15 BREAK - Tea And Coffee Available11.15 onwards Smart Energy Management Dave Worthington Verco

Smart Cities Frankie Downey C40Energy Optimisation Richard Tarboton E&Y

Smart Data Joel Stark Stark11.55-Close Summary and Thanks Alex Gilbert CLEMG

A Welcome From Your Venue

H&S

A Welcome From Your Hosts

Smart Energy UK:Building investor confidence

Mat LownPartner

10 October 2016

Key findings of our survey

— Awareness is strong and solutions are not seen as too complex or too risky.

— Compliance with regulation is a significant driver but policy and regulation is overly complex.

— A minority are taking the next step.

— No shortage of funding but barriers exist due to length of payback of investments.

— Erosion of confidence due to concerns over impartiality of advice provided.

— Removal of government incentives has also undermined confidence.

Legal & General Property

Debbie Hobbs – Sustainability Manager

Sustainable Property Investment

Legal & General Property8

LGIM Real Assets

� The figures• £20 bn Assets under management

• Approx 5,000 tenancy agreements

• 2,700 buildings

• 120 Employees

� Embedding sustainability• LGP employees – UKGBC step course on

sustainability• Property professionals – 60 Hours, College of

Estate Management (CEM) diploma• Sustainability objectives in all property

professionals appraisal process• Expect the same commitment from everybody we

work with throughout our supply chain

‘’ It is our view that sustainability already sits alongside location, tenant, and building quality as a key factor in real estate’s value and performance’’

Bill Hughes: MD & UKGBC Trustee

Legal & General Property9

Responsible Property Investment Framework & StrategyPolicy and Objectives

- Corporate- LGP- Fund

Annual Plans and Targets

- Asset Plan- Fund Plan- LGP Plan

Monitoring- Data Monitoring- Benchmarking- Reporting

Actions

- Compliance-EPC- Project Management- Tenant Liaison- ISO14001/Track

Record- Green Leases- Training

Capital Works and Investment

- Sustainability Targets

- BREEAM/SKA- SPIP

Communication- Corporate- LGP- Fund

Report- Quarterly Fund- LGP Annual- L&G Annual

Annual Cycle

Feedback

• Green Leases• Data sharing• Tenant guides • Tenant Handbooks• Building Logbooks • Fit out guide

Legal & General Property

Annual sustainability reporting

10

Legal & General Property

Targets

S:\Property\SUSTAINABILITY\GRESB\2016\Submitted forms 300616

Legal & General Property

How do you really measure sustainability performance?

Need a benchmark to see if a building is preforming in operation – key requirements:

• DEC methodology – but better benchmarks

• Energy Consumption Guide 19 proportional splits (ECG 19) and BBP Real Estate Environmental Benchmarking(REEB) and to set benchmarks. Luckily both benchmarks are pretty much in alignment.

• Landlord and tenant separate benchmarks

• Managing agents KPIs and ensures ‘best practise’ is achieved and proven

• Asset Managers – Monthly Intensive Care List linked to personal appraisal targets

VolDECSmarter Performance Benchmarking

Malcolm Hanna, Technical Director, National Energy Foundation

Improving the use of energy in buildings

It’s fairly tangled

The issue for Landlords and Tenants

• No split between Landlord and Tenant

• Cannot show improvements (or not) in what each control

• DECs use one benchmark for all offices

• Many offices are ‘stuck’ at G

The VolDEC solution

Building Energy Solutions Energy Management, Research & Training Consultancy

Recent Developments

Smarter benchmarking – Live VolDEC

Aztec WestBMS

• Database • Reconciliation • Analysis • Calculations

Web basedVisual platform

Smarter benchmarking – Live VolDEC

Smarter benchmarking – Live VolDECELECTRICITY USE 1ST FLOOR AZTEC WEST

WHOLE FLOOR

First floor Aztec West

Thank You

Meri Braziel – Trilliant

Smart metering- Foundation Rollout

Trilliant Networks

• Smart Grid & Smart Metering Communications Platforms• Globally deployed platform in over 80+ counties• Working with Utilities serving over 100 Million customers• Expertise in communications, interoperability and systems

integration• Largest UK SMETS1 technology deployment

| 28

Global Customer Base

200+

Awards

• IOT Innovation award ’15 & ‘16 • 2015 Smart Grid Platform of the year• Top 50 utility vendor award • US & Global Red Herring 100 Winner• Smart Grid Product of the Year award• Top companies to watch award• Top 20 - CIO Review ‘15 &‘16

Trilliant Foundation Solution

¾ Award wining smart energy communications platform• Head End System• Communications Hub• Direct Access Layer

¾ SMETS 1 Compliant ¾ Credit Metering ¾ Prepayment Metering ¾ Change of Supply ¾ IHD & CAD Support

| 29

Customer Home

Home Area Network (HAN)

ElectricityGas

IHD

Key Experiences from Foundation

• Consumer acceptance and positive consumer experience are critical

• Build business strategy for smart metering on solid economic value

• Review and redesign of end to end supply chain to Smart Metering equipment delivery- this is complex

• Team Sport ! – collaborative approach between technology vendors, retailers, policy makers and regulators

| 30

Key Experiences from Foundation

• Standards provide starting point but early in maturity

• Comprehensive testing of end to end in the lab is critical

• Field evaluation is critical component of ‘Go’ Criteria

• Major release timings to find and fix issues for the next release

| 31

Summary

• Foundation phase has provided some critical learnings– Customer acceptance, perceptions & communications– End to End Testing cycles & value of field trial– Extent of Business change – Managing the post go-live

• What are the next foundation learnings …….– Scale of foundation is estimated to be upwards of 10MM meters– Enabling a Change of Supply process is key– Lifecycle processes

| 32

www.vercoglobal.comExperts in energy management

Presenter’s name:

Presented to:

Date:

Smart energy management

p. 33

Dave Worthington

CLEMG

10th October 2016

Driving customer demand is an essential ingredient for the successful take-up of energy efficiency products

Customer demand

FinanceTechnical solutions and market capacity

Energy Efficiency Products

Smart energy managementp.34

Investment follows desirable products and consumer pull

Smart energy managementp.35

1. Evidence-based targets matched to implementation resource

2. SMART KPIs

3. Automated data collection and real-time visualisation

4. Automatic system control or data push to users

5. Best practice approach to project development with M&V

What is Smart Energy Management?

Smart energy managementp.36

Industry benchmarking data is driving continuous improvement

Smart energy managementp.37

Source: GRESB

Simple operational rating across Australia leads to 32% reduction in CO2 emissions over eight years and £9/sq ft premium

p.38 Smart energy management

ContextualFactors

Asset performance data allows benchmarking and prioritisation

Smart energy managementp.39

Tier Asset

1

1 Office street

Blues shopping centre

…

2

…

…

…

3 …

Open-source project data is improving confidence and sharing best practice

Smart energy managementp.40

Source: The Curve

Opportunity data allows evidence-based target setting

Smart energy managementp.41

0

1

2

6

38

-4

-3

-2

-6

-13.0 2.75 2.50 2.25 1.752.0 1.5

-24

-10

-9

OperationalCapitalProcess Change

Opex Saving ~$30mInvestment Required ~$20m

Opex Saving ~$10mInvestment Required ~$30m

Abatement curves can show:• The potential abatement possible• How that can compare to targets• The type of opportunity possible

Building management apps are making the invisible visible and identifying co-benefits

Smart energy managementp.42

Source: Demand Logic

www.eeperformance.orgSmart energy managementp.43

IREE ensures transparency, consistency and trust-worthiness through best practice and independent verification

IREE is the quality mark like BREEAM or

LEED but for a building retrofit

project

Smart energy managementp.44

Refurbish/redevelop

Funding

Construction

Acquisition

Occupation

Equipment replacement

Smart energy management enables a virtuous cycle of building energy performance management

Smart energy managementp.45

Best available technology replacement

Aggregate with other projects and consider EPC Soft landings,

AFD and M&V

Design for performance

Operational Performance Verification

Demand evidence of operational performance

Thanks for listening and any questions?

Dave WorthingtonManaging Director

m: +44 (0)7786 510 792

e: dave.worthington@vercoglobal.com

Verco — Experts in energy managementwww.vercoglobal.comISO9001 certificate number FS 558184 | ISO14001 certificate number EMS 562493 | Registered with BSI

Frankie Downey – C40

LONDON, OCTOBER 2016

C40 CITIES CLIMATE LEADERSHIP GROUPPRIVATE BUILDING EFFICIENCY NETWORK

C40 CITIES CLIMATE LEADERSHIP GROUP

The world’s leading megacities working together to tackle climate change

50

C40 networks help cities replicate, improve and accelerate climate action.

ADVANCE

CONNECT

INFLUENCE

INSPIRE

ADAPTATION & WATERClimate Risk AssessmentConnecting Delta CitiesCool Cities

ENERGYDistrict EnergyPrivate Building EfficiencyMunicipal Building Efficiency

FINANCE & ECONOMIC DEVELOPMENT

Green GrowthSustainable Infrastructure

SOLID WASTESustainable Waste SystemsWaste To Resources

SUSTAINABLE COMMUNITIESFood SystemsLand-Use PlanningLow-Carbon DistrictsTransit Oriented Development

TRANSPORTATIONBus Rapid TransitLow Emission VehiclesMobility Management

C40 CITIES CLIMATE LEADERSHIP GROUP

51

C40 CITIES CLIMATE LEADERSHIP GROUP

Cities getting SMART: New York

FOUR LAWS in 2008:

One for all buildings:• NYC Energy Conservation code

Three for large buildings:• Energy and water benchmarking• Energy Audits and Retro-commissioning• Lighting upgrades and sub-metering

52

C40 CITIES CLIMATE LEADERSHIP GROUP

Cities getting SMART

Nearly every building will need to complete a deep energy retrofit

53

C40 CITIES CLIMATE LEADERSHIP GROUP

Cities getting SMART: Yokohama

• 4,200 HEMS• 37 MW solar• 2,300

electric vehicles

• 15.2% demand reduction in households

• 22.8% demand reduction in non-domestic buildings

FOLLOW US

C40.org

Thank you for your timeFrankie Downy

fdowny@c40.org

Richard Tarboton – E&Y

Energy EfficiencyEnergy Optimisation and Energy Efficiency Financing

EY’s 3D Energy Strategy

57 EY Energy Optimisation - Strictly Confidential

Have your energy reductions flat-lined? Does shifting peak load stack up?

To hedge or not to hedge?Many corporates are already delivering some level of Price strategy to source lower cost energy.

However, to maximise energy savings, exploit the full opportunity and become sector lenders, the Volume and Time dimensions are essential.

EY’s vision is to help clients transform into energy optimising organisations across the 3 dimensions of price, volume and time

Six key themes characterise the leading organisations in energy strategy

Trends in energy strategy

SMART

Leaders prevent degradation of controls

£££FINANCE

Leaders unlock external funding for long term investments

TIME

Leaders actively manage peak price

£

EXECUTION

Leaders shift from target setting to execution

GLOBAL

Leaders prioritise energy investments globally

COMPLIANCE

Leaders shift from tick box to implementation

7 Key Success Factors for EE ProjectsEnergy Efficiency Success Factors

59EY Energy Optimisation - Strictly Confidential

Cost Reductions

Well Delivered Pilots (with Measurements)

Good Financial Incentives

(improvements needed to CRCs and ECAs)

Integrated StrategySponsorship at Board Level

Knowledge in Supplier Selection

Strong Business Case

Long Term Investment Appetite

7 potential barriers and solutionsEE Financing: Barriers and Potential Solutions

60EY Energy Optimisation - Strictly Confidential

Size

Verification

Payment Mechanism

Barrier Solution

• Project size too small • Reduced opportunities for large ticket size

investors• Less efficient use of time vs money

• Bundle/Wrap Projects• e.g. Vertical/Horizontal implementation across

5 year time horizon

• Difficulty of achieved savings valuation • Third party Independent verification• E.g. Energy Efficiency Verification Specialists

(EEVS), CSA Group, Energy Saving Trust

• Agreement on payment mechanism structure • Simplicity of structure is key• 2 Options:1) % of savings achieved – e.g. x% of savings

achieved; or2) Proportion of power used – e.g. £50p/kWh

of power saved

7 potential barriers and solutionsEE Financing: Barriers and Potential Solutions

61EY Energy Optimisation - Strictly Confidential

Time and Process

Standards

Barrier Solution

• Long decision making process for both Corporate and Investor

• Participation in EE financing frameworks• e.g. RE:FIT framework structure• Use of advisors as independent Project Managers

• Accounting standards govern treatment of Project

• On Balance Sheet vs Off Balance Sheet• Key standards – IFRS 4, IFRC 4

• Key Off B/S requirement – contingency payments• Use of accounting experts

Stakeholders

Trust

• Multiple stakeholders• Varying decision making process for different

Corporates

• Key decision maker – CFO of Corporates• Understanding of each Corporates structure and line

of decision making

• High degree of trust required between Corporate, Investor and Contractors

• Implementation of Warranties/Guarantees• Independent advisor Certification

EY | Assurance | Tax | Transactions | Advisory

Ernst and Young LLP

© Ernst and Young LLP. Published in the UK.All Rights Reserved.

ED None

The UK firm Ernst and Young LLP is a limited liability partnership registered in England and Waleswith registered number OC300001 and is a member firm of Ernst and Young Global Limited.

Ernst and Young LLP, 1 More London Place, London, SE1 2AF.

ey.com

Smart Settlements and Smart Data:How Data Collectors Can Empower

Energy ManagersJoel Stark | 10 October 2016

Changes to metering and settlements mean getting the right data partner is essential

This presentation aims to:

� Show how regulation is driving a transformation of metering and settlements

� Demonstrate how a strong data partner can help

About Stark

Leading independent energy data and services provider

Accredited Half Hourly and Non Half Hourly Data Collector

Process over 10% of UK’s electricity consumption every day

Validate 400 million data points per month

27,000 users of SavenergyOnline analytics platform

Storage Renewable Generation

Demand Management

Advanced and Smart Metering

Half Hourly Settlement

Sources of System Flexibility

The goal: a flexible, low carbon energy system

2017

Elective Half Hourly Settlement of Smart Meters

2018

System in Place for Mandatory Settlement Smart Meters

2014Advanced Metering for Profile Class 5-8s

2016Smart Meter Rollout Begins

2020Smart Meter Rollout Complete?

P272: Advanced Meters To Mandatory Half Hourly Settlement

2015 - 2017

Raft of metering and settlements regulation

Metering & Settlements Regulatory Milestones, 1996-2020

Half Hourly Settlement of LargestSupplies

1996

P272: The benefits case

� Lower commodity costs

� Transparency:

� Supply Capacity Charges

� Distribution Charges

� Triad

� Time of use tariffs to shift consumption or reduce demand

� Consumption data to empower organisations

Cost Profile pre-P272

Night

Day

Night

Day rate 1

DUoS Red

DUoS Amber

2 part tariff

2 part tariff with DUoS

Day rate 2

Day rate 3

Cost Profile Post-P272

30% of costs between

16.30 – 18.30

175,000 complete by

1st APRIL 2017

However, P272 timescales are extremely tight

Programme is struggling to deliver

Source: Elexon PAB188/05 – Supplier Migration Update, 29 Sep 2016; Stark analysis

Run-rate implies

seriously off-track

40 DAYSTO COLLECT

99% DATA

400 DAYSTO COLLECT

97% DATA

A revolution in data quality is required

Not all Data Collectors can deliverData Performance at SF, Stark vs. Industry

Source: Elexon, September 30 2016; Stark data

84

86

88

90

92

94

96

98

100

21 Feb 28 Feb 06 Mar 13 Mar 20 Mar 27 Mar 03 Apr 10 Apr 17 Apr 24 Apr 01 May 08 May

% Actual Reads

Stark HH

Stark P272

Industry P272

P272: The risks for consumers

� Upheaval to metering arrangements

� Meter replacements

� Changing Meter Agents

� Disruption to customers’ data, energy management platforms and billing

� Bill shock: ASC, DUoS, Triad, MOP DC DA

Take control!

� Don’t wait

� Avoid default Supplier arrangements – for both tariffs and Agents

� Work with data service providers that can deliver the benefits – data quality matters

� Take advantage of next generation analytics tools

Action Plan

Thank You

THANKS …

… NOW LET’S EAT (a low energy lunch)