ECA - Presentation 2012 - Paul Reeve - Energy Solutions: Putting Forward a Green Deal

Paul Reeve ECA

Energy Solutions The real Green Deal Paul Reeve FIEMA CEnv Head of Safety and Environment ECA

What we are going to cover... • What’s driving ‘Energy Solutions’ in 2012? • What’s happened to micro-renewables? • The Green Deal and other energy opportunities • ECA ‘Energy Solutions’ support for members • Future opportunities...

24/05/2012 What’s really driving the ‘Energy Solutions’ agenda? Here are four key factors…

1) Saving money... Responding to the rising cost of energy due to... • demand/sourcing issues • unwelcome global events! plus • carbon reduction policies and pricing... (more on this later)

The price of electricity has trebled in the last 10 years...

2) Carbon reduction measures • There are still plenty of UK carbon reduction measures But: • “The Greenest Government ever”? • Or just looking for the long grass..?

Carbon reduction policy goes off-road If Government is driving carbon reduction in the built environment, then how has it done? •FITs (hand brake turn) •Building Regulations (emergency U turn) •DECs (emergency U turn) •Carbon Reduction Commitment (in neutral, looking for reverse) •Smart meters (eyes off the road, checking mobile for calls…) •RHI (stalled start, still in first gear) •Carbon pricing (best let someone else drive)… •Green Deal (“let’s give it a go, it might work!”) (more Green Deal later…)

Carbon reduction measures Fortunately, other energy measures are in the offing… • Tougher Energy Performance in Building Directive (Europe- on the way ) • EPCs (now and – maybe - toughening up) • Lighting product bans (on the way) • Financial support (e.g. Enhanced Capital Allowances, Siemens green loan scheme – now) UK Government opposing toughest EU measures

Yet ‘carbon policy’ is only a small price factor

3) Energy security and supply

The UK’s six ‘energy options’ • Oil, coal, gas and nuclear - the UK’s four staple fuels • Energy efficiency is our most feasible ‘fifth fuel’... ... and renewables are the ‘sixth fuel’ (mainly large scale wind power) • So what happened to solar photovoltaics?

What happened to PV..? 0 50,000 100,000 150,000 200,000 250,000 300,000 A p ri l May Ju n e Ju ly A u gu st Se p te mb er O ct o b e r N o ve mb er De ce m b er Janu ary Fe b ru ary Mar ch A p ri l May Ju n e Ju ly A u gu st Se p te mb er O ct o b e r N o ve mb er De ce m b er Janu ary Fe b ru ary Mar ch 2010 2011 2012 N u mb er o f In st alla tion s Cumulative Installations confirmed on FITs at end of month Anaerobic digestion MicroCHP pilot Hydro Wind Photovoltaics

What happened to PV... 0 50,000 100,000 150,000 200,000 250,000 300,000 A p ri l May Ju n e Ju ly A u gu st Se p te mb er O ct o b e r N o ve mb er De ce m b er Janu ary Fe b ru ary Mar ch A p ri l May Ju n e Ju ly A u gu st Se p te mb er O ct o b e r N o ve mb er De ce m b er Janu ary Fe b ru ary Mar ch 2010 2011 2012 N u mb er o f In st alla tion s Cumulative Installations confirmed on FITs at end of month Anaerobic digestion MicroCHP pilot Hydro Wind Photovoltaics

But for now, let’s chase the money... The bulk of customer decisions are (naturally) based on a compelling financial case: • Return on investment - increasingly, ROIs from many energy efficiency measures outstrip ROIs from the client’s core business • Operating and maintenance costs - clients are looking for energy solutions that cut OPEX such as lifetime and maintenance

Helping members make the business case for energy savings...

Domestic energy saving opportunities include... LIGHTING • Lamp choice (indoors and outdoors) • Occupancy/movement sensors (indoors/outdoors) • Daylight sensors (indoors and outdoors) • Dimming systems HEATING • Heating on timed/programmable control DOMESTIC POWER • Local energy metering/portable monitors • ‘Smart’ meter addition to house or local sub-circuits (e.g. garages) • Overall energy control - by data system or wireless

Commercial energy saving opportunities include... LIGHTING • Occupancy sensors (internal and external) • Daylight sensors • Replacement ballasts/dimming • Replacement luminaires HEATING • Occupancy sensors • Heating on timed/programmable control • Heating on BMS control/sensor control as part of BMS. • Electric heaters

More commercial energy saving opportunities MOTORS AND DRIVES • Variable speed drives/energy recovery motors GENERAL POWER SYSTEMS • Power Factor Correction (PFC) • Voltage reduction/optimisation BUILDING MONITORING AND CONTROL • Local and smarter metering • Ranging from local control, to direct digital control, building management control systems (BMS) to integrated systems, via data system or wireless GENERAL • Identify replacement/investment program for major equipment

Energy Solutions support • In addition to basic financial advice on energy saving measures we provide: • An ‘Energy Solutions ’ telephone helpline • A real-time ‘e-forum’ • Comprehensive web-support • Publications for potential clients • Industry representation

The Energy Solutions e-Forum

Stakeholder engagement • Guide to commercial and public sector clients on the role of building services contractors. • ‘ A-Z of Carbon Jargon’ guide for stakeholders - in support of ECA events etc. • Extensive representation (e.g. Part L, FITs, EPBD, the ‘Green Deal’)

The Green Deal ‘Big Deal’ or damp squib? Threat or opportunity? The GD is set to apply to both the domestic and commercial sectors Upfront finance attached to the electricity bill (GD repayments linked to the property – not the householder) Repayments must not exceed the savings on bills – a net energy saving benefit to the household (the fiscal ‘Golden Rule’ ) 24/05/2012

‘Bottom up’ business model Green Deal Provider GD SME Conduit Loan Provider Customers Assessors Installers Green Deal: what an ‘SME conduit’ could achieve... GDPs will need the assessors and installers - and should price work accordingly

4) The future We are an engineering technology industry - the future may well be on our side... Technical developments should continue to boost... •Electric car charging •Smart and wireless energy control •Battery (storage) technology •LEDs - taking the market by storm •Whatever comes after LEDs! •Whatever comes after PV! •Demand management via smart grids and more...

Conclusions • Although Government energy in buildings policy is ‘off road’ there is a sustained and increasingly strong business case for finding Energy Solutions • Energy efficiency is the best low carbon measure to hand • New technology and tools should continue to offer building services contractors new products and opportunities

Conclusions • Our customers increasingly want to do business with people who can take care of their energy needs • That means ongoing, high quality and flexible service provision... • ...and that sounds like a job for competent building services contractors. • What do ECA members think..?

Q: Thinking about energy management, efficiency and renewables, do you see these as an opportunity for your business?

Published: 5 August 2013 Category: Magazines and newsletters

Topics

Energy Efficiency and Sustainability