Improving Energy Efficiency BSRIAs Operation & Maintenance - - PowerPoint PPT Presentation

Improving Energy Efficiency

Paul Huggins AD, Carbon Trust Programmes December 2013

BSRIA’s Operation & Maintenance Benchmarking Network

The Carbon Trust The Carbon

We are a not for profit group with the mission to accelerate the move to a sustainable, low carbon economy

– We advise businesses, governments and the public sector on their opportunities in a low carbon world – We measure and certify the environmental impact of organisations, supply chains and products – We help develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power

Presentation flow

The context for energy efficiency

Review of the UK’s major energy policies

Drivers of government action Government policy response Industry action on energy efficiency

11%

Drivers of government action Environmental, social and economic

Advice to government is that we need to act now on climate change now. March 2013; climate-warming gas in atmosphere passes 400ppm milestone

Intergovernmental Panel on Climate Change

Confirms global warming trends & that human action is the dominant cause of climate change

• The IPCC is an international body created

by the UN in 1988 to collect and synthetize the latest science on climate change

• Overall, the report represents a

confirmation of global warming trends and the expected negative impacts of current emission pathways on the global climate

6

Intergovernmental Panel on Climate Change What does this world map mean?

Scientists are now all but certain that climate change is mostly caused by human action, and that it is already leading to changes in regional weather patterns, with extreme events on the increase

Intergovernmental Panel on Climate Change A linear relationship exists between temperature increase and anthropogenic emissions

The IPCC confirm that:

• warming in the climate system is

unequivocal;

• that human influence on the

climate system is clear; and

• it is extremely likely that human

influence has been the dominant cause of observed warming. To put it another way, there is no

• ther scientifically robust cause for

the observed level of warming, it can only be attributed to human activity. If we are to contain to a 2 C rise then we have already used over half our global carbon budget

Drivers of government action Social

Global population growth will impact UK markets

A bigger, healthier, better educated and aspirational population

› UN projects world population will

grow from 6.1 billion in 2000 to 8.9 billion in 2050

› OECD forecasts that the global middle

class will increase by three billion people over the next 20 years

› Demand for energy, food, water and

materials (such as steel) is expected to increase by 30% to 80% by 2030

Government policy will be driven by

Stresses on energy, water, land and material resources

› Economic impacts driven by scarcity ›

Resource price increases

›

Increased price volatility

› Environmental impacts driven by use ›

Increased carbon emissions

›

Water stress

›

Land use

› Resulting in…. ›

Reduced security of supply

›

New regulations

Global businesses are telling us and the UK government that they are conscious of the resource scarcity risks They are using their purchasing power to shape the market

Source: Carbon Trust survey of senior executives in Brazil, China, Korea, UK and USA, Oct 2012 Answer to: “When do you think these areas will become of critical importance to you effectively running your business?”

Drivers of government action Economic

Energy prices are rising Electricity & gas costs have nearly doubled

• ver the last seven years

Source Castle Cover 2011

Government policy response Focused on energy efficiency

UK Government is acting on future energy cost and supply risks - significant UK energy savings exits

“[DECC] estimate that through socially cost-effective investment in energy efficiency we could be saving 196TWh in 2020” Equivalent to 22 power stations 11% lower than baseline 41MtCO2e less emissions

Source: The Energy Efficiency Strategy: The Energy Efficiency Opportunity in the UK (2012)

Current context on UK GHG emissions Energy consumption and emissions increased in 2012

All GHGs

571.6 MtCO2e

• 2012 provisional UK emissions

based on Kyoto Protocol greenhouse gases basket.

• 3.5 per cent higher than the

2011 figure of 552.6 million tonnes

CO2

479.1 MtCO2

• UK net emissions of CO2 were

estimated to be.

• CO2 accounted for about 83 per

cent greenhouse gas emissions (in 2011)

• 4.5 per cent higher than the

2011 figure of 458.6 MtCO2. Source:

• 2012 UK GHG Emissions, Provisional Figures,

and 2011 GHG emissions. March 2013

UK non-domestic emissions impact

Non-domestic building (18%) and industry account (22%) account for 40% of UK emissions

Note:

from manufacture of coke, petroleum products & nuclear fuel products, recycling, water purification, construction, mining & quarrying and unclassified industrial processes. Source: BIS, Defra, Carbon Trust analysis, 2006

UK non-domestic emissions (MtCO2e)

Rubber, plastics & wood

25 50 75 100

Industrial (70%) Commercial (21%) Public (9%)

Total: 248Mt Percent (%)

Metal & minerals Food, clothing & paper Chemicals Engineering & vehicles Other industry1 Retail Hotel & Leisure Services Other commercial Public sector

Other High & Low Temperature Processes Motors Refrigerators & Compressors HVAC Lighting 24 29 23 19 64 20 12 13 8 22 14 Catering and hot water Computing

UK Government and Carbon Trust analyses show a range of market failures inhibit action

Market failures, include:

• misaligned incentives
• imperfect information
• undervalued energy efficiency
• pportunities
• embryonic markets

Source:

• 1. “What are the factors influencing energy behaviours and

decision-making in the non-domestic sector?” [DECC, Nov 2012]

• 2. Carbon Trust analysis
• The different market failures drive

government to provide a range of policies that drive wide spread behaviour change

The government has taken widespread action. A review of the UK’s major energy policies

• Eco Design

ign seeks to bar inefficient products from the market

• ESOS

OS mandatory energy audits from 2015 for large companies

RHI RHI

• RHI is a long-term subsidy for renewable thermal energy

energ rgy

• EDR Feed in tariffs for energy efficiency (capacity market, across all

areas)

One policy is insufficient to alter behaviour Multiple policies impact on product markets

Eco design ECA ETL Building Regulations CUT OUT least sustainable products DEVELOPMENT

• f new, more

sustainable products DRIVE The existing market toward purchase

• f more sustainable

products ENCOURAGE purchase

• f the most

sustainable products Product policy Impact Intervention

• Minimum standards
• Pricing and trading
• Business Support
• Labelling
• Procurement advise
• Education
• Voluntary agreements
• labelling
• Fiscal incentives

CATAPULT

• Fund demonstrators

Number of products in market

LESS PRODUCT SUSTAINABILITY MORE

Industry action on Energy Efficiency Improving energy efficiency

35,000

• n-site surveys

75%

FTSE 100 companies

£1.6bn

spend on energy efficient equipment

50,000

advice line calls per annum

70%

Local Authorities

90%

Higher Education Institutions

50%

NHS Trusts

We have worked with: to deliver: and undertaken:

£4.5bn

energy waste avoided

Our expertise is built on deep experience

The case for action on energy efficiency is compelling

11% 13% 11% 7% Public Services Retail Chemicals

Identified % carbon savings opportunity by sector Identified carbon savings opportunity by technology and sector

11%

1,845 126 ktCO2e/ Year

Process-related technologies are important in manufacturing sectors like chemicals Lighting, HVAC, and building controls are important in building- based sectors Carbon & energy management is important everywhere

Total percentage carbon and energy cost savings opportunity identified in 2,132 organisations in the public, services, retail, and chemicals sectors. Identified measures hold the potential to reduce emissions by 2MtCO2e and energy costs by £253 million annually.

Our on-the-ground experience confirms the energy efficiency opportunity Excellent opportunities exist across all sectors

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Non-energy- intensive (public, services, & retail) Energy-intensive (chemicals) Other Waste Process Motors CHP Refrigeration Lighting HVAC Office equipment Controls & operations Building construction & fabric Carbon & energy management

Typical investment returns 40-50% 10-15% 5-10%

Source: Carbon Trust analysis

Government and Carbon Trust research reached similar

• conclusions. Energy efficiency projects typically deliver

high returns

Typical payback periods for energy efficiency investments

Source: Carbon Trust analysis

Government and Carbon Trust research reached similar conclusions.

Energy efficiency projects have good payback performance

Operational Efficiency and Behavioural Change Low/no cost savings through measuring and monitoring energy use, staff engagement and appropriate improvements to the use and maintenance of existing equipment Building Energy Efficiency Investment in new building technologies including:

• Controls
• Air conditioning
• Lighting
• Ventilation
• Heating

Industrial/Process Energy Efficiency Investment in new industrial technologies and processes including:

• Motors & drives
• Refrigeration
• Compressed air
• Process heating
• Process controls

Renewable Energy Investment in equipment to generate local renewable heat or electricity:

• Biomass
• Solar (thermal/PV)
• Heat pumps
• CHP
• Wind
• Waste to energy

The top left box is often the area customers will want to focus on first and gain some early wins

Opportunities are found across all sectors

Many require low capital investment or are incentivised by government

Opportunities are found across all sectors

Many require low capital investment or are incentivised by government

Operational Efficiency and Behavioural Change Low/no cost savings through measuring and monitoring energy use, staff engagement and appropriate improvements to the use and maintenance of existing equipment Building Energy Efficiency Investment in new building technologies including:

• Controls
• Air conditioning
• Lighting
• Ventilation
• Heating

Industrial/Process Energy Efficiency Investment in new industrial technologies and processes including:

• Motors & drives
• Refrigeration
• Compressed air
• Process heating
• Process controls

Renewable Energy Investment in equipment to generate local renewable heat or electricity:

• Biomass
• Solar (thermal/PV)
• Heat pumps
• CHP
• Wind
• Waste to energy

The top left box is often the area customers will want to focus on first and gain some early wins

5- 10%

Behavioural change example: Empower - giving practical advice to your employees, partners and wider community

30

Track organisational and partner engagement But make it personal

Opportunities are found across all sectors

Many require low capital investment or are incentivised by government

Operational Efficiency and Behavioural Change Low/no cost savings through measuring and monitoring energy use, staff engagement and appropriate improvements to the use and maintenance of existing equipment Building Energy Efficiency Investment in new building technologies including:

• Controls
• Air conditioning
• Lighting
• Ventilation
• Heating

Industrial/Process Energy Efficiency Investment in new industrial technologies and processes including:

• Motors & drives
• Refrigeration
• Compressed air
• Process heating
• Process controls

Renewable Energy Investment in equipment to generate local renewable heat or electricity:

• Biomass
• Solar (thermal/PV)
• Heat pumps
• CHP
• Wind
• Waste to energy

The top left box is often the area customers will want to focus on first and gain some early wins

5- 10%

Opportunities are found across all sectors

Many require low capital investment or are incentivised by government

Operational Efficiency and Behavioural Change Low/no cost savings through measuring and monitoring energy use, staff engagement and appropriate improvements to the use and maintenance of existing equipment Building Energy Efficiency Investment in new building technologies including:

• Controls
• Air conditioning
• Lighting
• Ventilation
• Heating

Industrial/Process Energy Efficiency Investment in new industrial technologies and processes including:

• Motors & drives
• Refrigeration
• Compressed air
• Process heating
• Process controls

Renewable Energy Investment in equipment to generate local renewable heat or electricity:

• Biomass
• Solar (thermal/PV)
• Heat pumps
• CHP
• Wind
• Waste to energy

The top left box is often the area customers will want to focus on first and gain some early wins

5- 10% 20- 30%

Public Services Retail Chemicals

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Implementation rate (% of tCO2e)

66th percentile 33rd percentile 90th percentile 10th percentile Distribution shows wide variation in

• rganisations’

progress within each sector

Distribution of organisations’ implementation rates by sector, 3- year ‘snapshot’

Public Services Retail Chemicals 0% 10% 20% 30% 40% 50% 60% 1 2 3 Years since initial recommendation Implementation rate (% of tCO2e)

Organisations still acting

• n recommendations

after 3 years

Implementation rate of measures in years following initial recommendation

Forward thinking business continue to push forward – 3-year ‘snapshot’ shows significant progress

Recent research insights Lighting, training and MM&T are the commonest ways to improve energy efficiency

Which of the following technologies have you invested in to improve the energy efficiency of your business in the last year?

Our mission is to accelerate the move to a sustainable, low carbon economy

Keep in touch:

› 020 7832 4593 › Paul.Huggins@carbontrust.com