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BT Renewables

Leading by Example

Adastral Park

Friday 26th November 2010

Tom Martin

(Head of Partnerships)

BT’s Energy and Sustainability Record –

building on success...

• The company has reduced its carbon footprint by 59% in the UK from 1997 and targets 80% reduction worldwide by 2020.

• BT has a combination of environmental and energy reducing activities including:

– Recycling and cutting waste

– Car sharing schemes for employees

– Energy efficient BT building campaigns

– Implementing flexible working practices that reduce harmful energy impacts

– Identifying “environmental performance” as a key factor in „Green‟ procurement processes

– Purchasing low-carbon electricity

• BT has one of the largest low carbon energy contracts in the UK. Procuring 40% renewable electricity and 60% good quality CHP

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BT’s Approach to Renewable Energy

-The UK is committed to reducing its fossil fuel consumption and increasing the amount of renewable energy it produces.

The UK Renewable Energy Strategy sets out the path for the UK to meet a legally-binding target to ensure 15% of its

energy (electricity, heat and transport) comes from renewable sources by 2020.

-BT is focused on:

-saving energy

-securing future supplies of renewable energy

-and reducing its exposure to rising energy prices

- playing a leading role in the transition to the low carbon economy

On Shore Wind Programme

In 2007 we announced plans to develop our own on - shore wind farms to produce around 25% (250 MW) of our current electricity needs from renewable sources by 2016.

The installed capacity is the equivalent to powering 143,250 homes or a city the size of Oxford

A wide range of wind sites are being progressed through the planning system

Our first major success has been to receive a „resolution to consent‟ for the Red Gap site – we are hopeful of receiving the formal planning certificate very soon!

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Wind Farm Locations (in public domain)

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Site Name No. Of

Turbines (typically 2.3 MW)

Location Status

Red Gap Farm 5 (11.5 MW) Hartlepool Resolution to

consent

Junction House 1 (2.3 MW) Durham Planning

application

submitted

Heysham 1 (2.3 MW) Lancaster Planning

application

submitted

Ilfracombe 3 (6.9 MW) North Devon Planning

application

submitted

Wingates (x2) 7 (9.2 MW) Northumberland Planning

application to

be submitted

shortly

Skeffling 5 (11.5 MW) East Riding Planning

application to

be submitted

shortly

Clare 6 (13.8 MW) Suffolk EIA in progress

• The site development

portfolio is very dynamic and

can change regularly

• Decisions have been made

not to pursue sites for different

reasons

• Sites can be in the planning

system for a long time before

„determination‟

• Early work has started on

new sites, though their

locations are not yet in public

domain

• Development budget has

critical bearing on what can be

achieved

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The Planning and Environmental Impact

Assessment (EIA) Process

Stage 1: Preparation and submission of the Scoping

Report (site goes public!)

Stage 2: Pre-application consultations / baseline studies

Stage 3: Preparation and completion of Environmental

Impact Assessment

Stage 4: Preparation and completion of planning

application, comprising:

Environmental Statement

Planning Statement

Design and Access Statement

Transport Assessment

Statement of Community Involvement

Stage 5: Post-application consultations and scheme

amendments (as necessary)

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Typical Planning and Environmental Issues for an EIA

• Planning Policy and Issues – the compliance of the proposal with the statutory and non-statutory policy

framework;

• Abnormal Load Routing – the delivery of the component parts of the WTGs and associated plant and equipment;

• Landscape and Visual Impact – the potential visual impact on the surrounding countryside;

• Ecology – the potential for the proposal to impact on species of flora and fauna that exist on site, as well as their wider habitats;

• Ground Conditions – the potential to disturb any contaminated soil on site, in the event that pollutants are identified;

• Archaeology and Built Heritage – the impact of the proposal on any cultural assets, including their setting within the vicinity of the site;

• Noise – the assessment of any potential noise impacts on local residents;

• ‘Shadow Flicker’ – a potential impact specific to wind turbines of the strobing effect of the light through the blades;

• Socio- Economic Impacts – the effect the proposal will have on the local economy and local communities

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The Need for On Shore Wind Energy in East of England “No commercial scale wind turbines have been constructed in the region in

the past 6 months, or indeed in the whole of 2009, so the region still has 128MW of installed capacity (about 71 commercial scale turbines) generating electricity.”

Renewables East Annual Monitoring Report (January 2010)

• The specific need in the region was set out in a 2008 technical study „Placing

Renewables in the East of England‟, commissioned by EERA to establish the regional capacity for renewables.

• The Study recommended that (by 2010) onshore wind farm developments should

deliver some 647 MW of electricity.

• There is on this basis therefore, currently, a requirement for a substantial level of on-shore wind powered renewable energy development in the East of England.

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The Proposed Site at Clare - Suffolk

• Located at Leys Farm, near Clare

• Currently comprises 66.9ha of mixed agricultural land

• 6 x 2.3 MW wind turbines – subject to a final design freeze

• A meteorological mast has been approved and has

Landscape Assessment is crucial for Clare

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Proposed Grid Connection – a sensitive issue

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•Grid connection routes

are often a very

sensitive issue to local

communities

• They also have

significant implications

on the commercial

viability of the

scheme(s) for BT

• Grid capacity in local

areas is another

significant issue

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Consultee and stakeholder engagement

• Suffolk CC Highways

• Suffolk CC Ecologist

• Suffolk CC Landscape Officer

• Suffolk CC Archaeologist

• Neighbouring local authorities, specifically Essex County Council

• St Edmundsbury Borough Council

• Natural England

• English Heritage

• Environment Agency (EA)

• Anglian Water

• Royal Society for the Protection of Birds (RSPB)

• Suffolk Wildlife Trust

• Government Office for the East of England (GO-East)

• East of England Development Agency (EEDA)

• East of England Regional Assembly (EERA)

• Country Land and Business Association

• The Health and Safety Executive

• The Ministry of Defence (MoD)

• Campaign to Protect Rural England (CPRE)

• Joint Radio Company (JRC)

• Office of Communications (OFCOM)

• National Air Traffic Authorities (NATS)

• Civil Aviation Authority (CAA)

• Stansted Airport

• Norwich Airport

• Haverhill Chamber of Commerce

• Suffolk Chamber of Commerce

• Sudbury and District Ramblers Association

• Essex Gliding Club

• Clare Tourism Forum

• Friends of the Earth

• Stour Valley Action Group

• Clare Society

• Suffolk Preservation Society

• Local Parish Councils and residents

Consultees who have been approached or are proposed to be approached. This list is non exhaustive.

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Abnormal Load Routing

Landscape and Visual Assessment

Project Coordination and Planning Policy

Ecology

Ground Conditions

Archaeology and Built Heritage

Noise

Shadow Flicker

Radar

Preparing Planning Applications - Specialist Support

Consultation

Wind Farm Site Screening and Constraints Mapping

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•We have a rigorous screening

process before sites are introduced

into the portfolio

•Major constraints are mapped and

areas of opportunity are identified

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Stakeholder Consultation – Our Approach

Publicity

– Adverts in local media

– Press and media interviews / press releases

– Letter to stakeholder group

– Resident and Business leaflet drop (5km of site)

– Website

• Listen, be open and factual

• Identify local Statement of

Community Involvement (SCI)

guidelines / good practice guides

(Renewables UK) / Good Practice

Guide to Public Engagement in

Development Schemes

• Meetings with LPA

• Identify stakeholders and potential

issues

• Develop the detailed consultation

approach

• Remain flexible

• Report back through a SCI

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• Pre meeting with elected representatives / local interest groups / parish councils

• Display boards

• Photomontages / Wireframe modelling

• Maps

• Comment forms (capture names and addresses of those wishing to be kept informed)

• Children's activity

• Technical representatives from BT Wind for Change

Public Exhibitions – an important dialogue

• Very challenging at times; but varied

• Very broad set of questions and opinions

• Negative voices can dominate – but need to be listened to

• Planning Authorities expect high quality engagement with local communities

• The new Localism Bill in Parliament reinforces this

• BT does have a very good story to tell

• Broadband issues regularly feature

Working with Communities – BT being a good neighbour

. Community Benefit is a crucial part of our story to communities; what it is that we will put back into the area when a BT wind farm is built

One off „In Kind‟

support (£)

Annual Revenue

Fund (£ per MW)

Local Contracting

commitment

CSR related

initiatives

(inc. Education)

Wider BT

Opportunities

(inc. Broadband)

• Estimated 59MW of solar PV on BT estate, most

of which is roof mounted, on c. 400 properties

• Development process of projects and funding

strategy for build out very similar to wind projects

• Feed In Tariff provides £293 per MWh income,

degression of this from 1 April 2012

• Internal BT project management required to

coordinate relevant interests in buildings to allow

this project to succeed

• Very few planning issues and 3rd party consultee

barriers so considered highly deliverable

• ECU Strategy team completed a business plan

model demonstrating returns to BT by developing

solar PV on BT buildings

Erdington ATE,

Birmingham

Developing Solar Power for BT

Inverness TE

763 kWh/kWp

8.7% capacity

factor

Dial House,

Manchester

– 833

kWh/kWp

9.5%

capacity

factor

Faraday –

869

kWh/kWp

9.9%

capacity

factor

Goonhilly – 956

kWh/kWp

10.9% capacity

factor

Why Solar for BT – more detail

• Capacity factor is 8-11% in UK

• Installation Costs range from £2.3 - £2.8 million per MW.

Panels are ~60% of cost

• Annual Costs - 0.5% of capital cost (O&M), 3.5% of

capital cost (inc insurance, monitoring etc)

• Rules of Thumb - 8m² of Solar Panels for 1kWp, 25m² of

Flat Roof Space for 1kWp

• 59MW of solar PV on buildings will take 12-18 months to

install once all consents are in place on each site.

• Development programme needs to start now to ensure as

much as possible is installed prior to April 2012. Funding,

procurement and installation programme will run in parallel

with consenting programme

• 59MW solar PV will generate around 50,000MWh per

annum. At 20% energy cost reduction this equates to

savings of £470,000 per annum

• Feed in Tariff designed to give 8% ROI at various scales

of installation. Expert opinion is that 10% is achievable .

Solar Power at Adastral – Current Thinking

• Adastral Park is one of the principle sites being considered in the first phase of a solar PV programme on BT‟s estate

Proposed PV array sites

Car park B – 100% cover

Car park E – 100% cover and green car charging points

Car park G – 100% cover

Car Park U – 75% cover

Gemini B26 and B27 – 80% cover

Aquarius building B64 80% cover

Calisto House B81 – 80% cover

Columba House B83 – 80% Cover

Vega Building S1 – 100%cover

Ross Building S2 – 100% cover

Next Steps

• Detailed design of installations

• Start dialogue with Suffolk Coastal planning officers

• Prepare and submit planning application

BT Sprints – Energy Saving

• People across BT are now working on local sprint targets for a period of three

months with the aim of contributing to one of BT‟s three delivery priorities (customer

service delivery, cost transformation or future investments).

• Group CR, Group Property and the BT Energy & Carbon team are using the vehicle

of the 2012 sprints to engage with occupants of key BT buildings to reduce energy

consumption in those buildings.

• Sprint 3 (Sponsor: Liv Garfield) - people based in BT Centre were asked to take

action to reduce the energy consumption of the building by 10%. Overall a 17%

reduction in energy costs was achieved, saving BT £56k in the Sprint period.

• Sprint 4 (Sponsor: Mike Galvin) - 26 key buildings are taking part in Sprint 4 and the

ask is that they reduce energy consumption by 10%. If we reach the target we will

save over £420k in the three month period and reduce CO2 emissions by nearly

3000 tonnes.

How does the Sprint work?

Engagement

Managed by the LoB comms leads there is an engagement

campaign targeting the occupants of the sprint buildings to reduce

their energy consumption at work:

• Sprint 4 posters

• Energy campaign notice board

• Internal comms from sprint sponsors

• Formwise survey to measure engagement

• Building energy champions

• Competitions

Operational Delivery

Group Property and the Energy and Carbon team will work with

Monteray, Telereal Trillium, Vector and the BT Ireland Property

team to identify and deliver operational changes to the building to

reduce energy consumption.

Progress to date…..

Energy

move this

week

(£)

Energy

move to

date

(£)

Energy

move to

date

(%)

Forecast

out-turn

at current

run-rate

31/12/2010

(£)

ADASTRAL PARK -£137,125 -£666 -£4,252 -0.7% -£8,891

IPSWICH CC -£18,517 -£970 -£4,645 -5.4% -£9,712

ALEXANDER BAIN HOUSE -£11,888 £802 £5,199 10.6% £10,871

ALEXANDER GRAHAM BELL HOUSE -£8,143 -£582 -£4,210 -12.5% -£8,802

BAYNARD HOUSE -£47,799 -£172 £7,084 3.0% £14,812

BLACKBURN AMTE -£6,030 £656 £711 2.6% £1,487

CARDIFF STADIUM HSE -£30,255 -£1,769 -£11,206 -7.7% -£23,432

COLOMBO HOUSE -£30,825 -£911 -£5,861 -4.2% -£12,256

OSWESTRY WHITTINGTON HOUSE -£15,016 £300 -£1,224 -1.8% -£2,560

DONCASTER CALL CENTRE -£6,354 -£101 -£4,683 -16.4% -£9,792

NEWCASTLE CALL CENTRE -£5,298 -£58 £285 1.2% £596

WARRINGTON CALL CENTRE -£6,515 -£699 -£4,129 -16.1% -£8,634

SWANSEA CENTRAL ATE/TRS -£12,726 -£298 -£3,302 -5.6% -£6,905

WOLVERHAMPTON TELECOM HOUSE -£2,116 -£269 -£1,342 -20.9% -£2,806

FARADAY BUILDING -£14,792 £1,081 £6,678 9.6% £13,963

LANCASTER HOUSE ATE DXM -£19,088 -£269 -£1,342 -7.1% -£2,806

1 SOVEREIGN STREET -£10,404 -£467 -£5,652 -11.9% -£11,819

KELVIN HOUSE -£8,606 -£846 -£3,519 -8.9% -£7,357

BT CENTRE N/A -£802 -£5,160 -4.6% -£10,788

Total GB Sprint sites -£391,498 -£6,039 -£40,571 -2.4% -£84,831

BT Central TE -£20,455 -£854 -£2,875 -5.4% -£11,229

BT Riverside Tower -£8,044 -£1,219 -£5,006 -19.5% -£16,026

Carrickblacker Road -£5,997 £46 -£206 1.0% £603

Queens Quay -£3,501 -£45 -£227 -1.7% -£597

Mallusk GM7 -£1,382 -£83 -£644 -7.5% -£1,097

Enniskillen TE-GJF -£2,031 -£21 -£265 -1.4% -£278

Dundrum Blk -£6,902 -£253 -£1,795 -4.8% -£3,321

Grand Canal Plaza -£3,584 -£636 -£3,240 -23.1% -£8,359

Total Ireland Sprint sites -£51,895 -£3,067 -£14,259 -5.6% -£40,304

Peter Morris

Warren

Buckley

Ruth

Pickering

Andrew

Jones

Ralph

Steffens

Phil Dance

Building LOB

Sponsor

Sprint

Target

(£)

Year on Year Energy Savings

Adastral Park

Challenges facing the Sprint

• Engagement of resource to deliver the operational changes to achieve

savings

• Financing the saving opportunities

• Maintaining the momentum of employee engagement

• „Industrialisation‟ of the campaign for next phase

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BT Renewables

Leading by Example

Thank you

Tom Martin

Head of Partnerships