Transcript Introduction to AVC

Delivering Heating Solutions for Social Housing
AVC ALTERNATIVE ENERGY
Saving energy
Cutting Utility Costs
Reducing Carbon Emissions
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AVC Group
About AVC
• A leading service company in Energy, Recycling, Digital and Media
• Over 20 years experience in delivering energy savings projects
• National presence of offices with local engineering workforce
• AVC Alternative Energy seek to help our customers save energy, cut
costs and reduce carbon emissions by;
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Providing detailed energy audits
Identifying and delivering proven solutions
Use conventional and renewable technologies
Providing finance solutions (through partners)
Full Service monitoring operations and maintenance
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Key Drivers
1) Fuel prices continue to rise
Over the last five years figures show
that there has been a total…
– 31% rise in coal costs
– 30% increase in gas prices
– 31% increase in oil costs
These increases look set to continue
2) Need to reduce carbon emissions
As part of ‘The Kyoto Agreement’.
The UK has a target to reduce
Carbon emissions to 80% of 1990
levels by 2050.
Woodchips
Wood pellets
Natural gas
LPG
Oil
Coal
Electricity
0
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100
200
300
400
500
600
Source data: Biomass Energy Centre & World Energy Council
AVC Alternative Energy
Provides a variety of services including
• Energy Efficiency
• Energy Service
• Energy Generation
The focus today is on;
• Biomass Heating
• Air Source Heat Pumps
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AVC Group
Biomass – The Technology
• Biomass Boilers are effective direct
replacement for oil/electricity/LPG/ coal
boilers for heating and hot water
• Used in Europe for over 30 years with
more than 8.5m domestic, commercial
and public sector systems installed, it is
a proven reliable technology
• Biomass Boilers use wood pellets and
wood chip from renewable sources to
lower fuels prices, reduce running costs
and deliver carbon savings
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Biomass boilers can be sized to your requirements and made to
integrate into their environment
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Biomass – Why Consider Switching?
 Lower running costs of 20% to 40% per annum when
switching from oil, electricity, coal or LPG
 100% funding available and delivers guaranteed
savings from year 1 (ESCO structure)
 Qualifies for Government RHI payments
 Capital investment typically repaid within 5-7 years
 Reduce in Carbon Emissions
 On-line remote monitoring, comprehensive
maintenance service and fuel security
 Seamless Service Delivered
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Biomass – Ideal Applications For Social Housing
 District Heating Systems, Offices, Warehouses, Community Centres as
RHI is only applicable for commercial installations until Green Deal
 Off gas
 “Wet” heating system
 Space for wood chip store
 Access to deliver wood chip
 Secure site
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Biomass – Issues and Pitfalls
Performance – is effected by the following factors
• Configuration & Maintenance of the Biomass System
• Wood chip quality; type, moisture content, calorific value and size
Fuel security
• What price is paid for the fuel
• How frequently is the price reset and what mechanism is used?
• Ability to supply the wood chip for 20+ years
Other
• RHI Structure
• Monitoring; performance, fuel levels, billing
Trade off between managing these risks or having them managed
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AVC Group
Biomass – Managing Risks
Benefits
• Local Business
Spoke
Spoke
Spoke
Spoke
Spoke
• Guaranteed Fuel
Supply
• Consistent quality
• Reduced transport
costs & emissions
Spoke
AVC
BIOMASS
HUB
Spoke
• Ability to provide a
long term fixed
price heat contract
indexed to RPI
Spoke
Spoke
Spoke
Spoke
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Spoke
• Guaranteed
savings
Biomass – Managing Risks ESCO Contracts
Key Terms
Benefit
Risk
100% Funded Installation
No Capital Investment
Fully Maintained
No maintenance worries
100% Fuel Supply
No fuel supply worries
Minimum Annual Heat
Agreement
Annual heat usage is
fixed
Fixed Heating costs for either 1
year 5-7 years or 20 years
Guaranteed savings and
long term fixed price fuel
option
RHI Benefits split between
parties based on period
After capital repayment
period RHI is split on a preagreed basis
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Air Source Heat Pumps
Benefit of Air Source Heat are well understood:
 Reduce cost of heating by 30% to 50%
 Reduce carbon emissions by 40% to 65%
 Relatively easy to install and maintain
Until recently types of funding for ASHP has been limited.
 In partnership with a major bank, AVC has developed a operating
leasing model for ASHP.
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Portability
Hot water cylinder slide out base
ASHP on skid
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Portability
Hot water
cylinder slide out base
ASHP on skid
Radiators optional
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Product Install
Wall Mount Kit
Floor Mount Kit
Either option will be installed with quick release fittings
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Risk and mitigation
• Banks view is the Operating lease is unlikely to be challenged as an
ASHP is an external device therefore more portable than internally
wall mounted previously approved Boiler leasing scheme.
• Need for replacement met with minimal capital outlay
• Lease repayments can be recovered through energy saved
• System under performing
– Fully accredited audit, survey and install process
– Continuous monitoring via Energy Eye
– Manufacture warranties
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Solution options
• Leasing will support a high % of the install cost
• Project linked to CESP and CERT
• Offer operating lease linked appliance
• On introduction of Green Deal HA could become Green Deal provider
to payback primary lease via energy savings
• RV and secondary lease to be taken by Appliance manufacturer,
linked with term maintenance agreement with AVC for primary lease
• Monitoring via energy eye protects investment
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Questions
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Renewable Heat Incentive (RHI)
Available for Industry, Commercial & Public Sector in Great Britain
In 2011 the Government launched the Renewable Heat Incentive Policy (RHI) to
encourage organisations to decrease reliance on fossil fuels, reduce carbon emissions and
encourage innovation, jobs and growth in energy technologies.
Payments are made for each kWh of renewable heat which is produced. It is paid for a
period of 20 years.
The table below shows biomass tariff rates in Great Britain
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Updated 01 Apr 2012