Transcript Effective Energy & Carbon Reduction

Effective Energy & Carbon Reduction
EAUC 12th Annual Conference - 31st of March 2008
Kevin McDonald & Paul Smyth - Salix
David Stutchfield – St Andrews
Our mission is to work with the public sector to reduce carbon
emissions through investment in energy efficiency and
renewable technologies.
Salix Finance – Agenda
•
Introduction to Salix Finance
•
Update on current HEI & FE activities
•
HEI activities – new opportunities from April 08
•
Recent improvements to the fund
•
St Andrews - A Client’s perspective
•
Questions?
Salix Finance
Introduction to Salix Finance
Salix Finance – who are we?
•
Independent not-for-profit company
•
Set up by the Carbon Trust in 2004
•
Work only with public sector bodies
•
To reduce energy costs and carbon emissions
•
Show leadership in tackling climate change
Salix Finance – what do we do?
• Stimulate investment
• Using ring-fenced funds
• Recycle all projected savings
• Focus on cost-effective projects
with high CO2 reduction impact
• Match funding – typically £250K
• Initial fund spent over 2 years
• Reduce energy bills
• Make capital go twice as far
Salix Finance - types of technology
• The following lists the main types of technology in the fund
– BEMS
– Boiler replacements and controls
– Cooling and heating projects including controls
– Insulation Building Fabric
– Lighting upgrades and controls
– Motors and motor controls
– Office equipment improvements and network PC
management
– Renewables
– Swimming pool covers and controls
– Ventilation
– Voltage reduction
Salix Finance – All Clients projects breakdown
Commissioned & In Progress Projects as a % - 31st Oct
Boiler Controls
5%
Air Compressor
1%
Voltage reduction
6%
Ventilation
1%
Heat - Electric to Gas
7%
BEMS
6%
Heat - Pipework insulation
3%
Heat - Controls
4%
Motor controls
8%
Heat - Other projects
5%
Lighting - discrete controls
8%
Hot water - Point of use
3%
Lighting upgrades
10%
Swimming pool covers
3%
CHP
1%
Insulation
19%
Boiler Replacements
9%
BEMS
Heat - Other projects
Heat - Electric to Gas
Hot water - Point of use
Heat - Pipework insulation
Boiler Replacements
Heat - Controls
Insulation
CHP
Motor controls
Air Compressor
Swimming pool covers
Ventilation
Lighting upgrades
Voltage reduction
Lighting - discrete controls
Boiler Controls
Salix Finance – All clients projects breakdown
Commissioned & In Progress Projects as a % - 31st Oct
Wall caldding
1%
Draught proofing
15%
Double / secondary glazing
8%
Cavity & Loft
13%
Cavity
28%
Loft
35%
Draught proofing
Cavity
InsulationProjects
Projects
Insulation
Loft
Cavity & Loft
Double / secondary glazing
Wall caldding
Salix Finance - project criteria
• Projects must deliver both CO2 & revenue benefits
• Two project compliance criteria
– 5 year payback period and £100/tCO2
– 7.5 year payback period and £50/tCO2
• Energy efficiency projects
– As documented in the Salix Project tool
– Or approval through suitable demonstration project
• CHP and renewable energy technologies
– Include a feasibility study carried out according to a recognised
methodology
Salix Finance
Update on current HEI & FE activities
Salix Finance - working with Higher Education
Initial Pilot consisted of 8 Universities:
University
Cambridge
Kings College
Leeds Met
UWE
Edinburgh
Glasgow
St Andrews
Stirling
Total
Salix Fund
Total Fund
£2,079K
£4,171K
Two clients have now increased funding size
Salix Finance - working with Higher Education
Projects undertaken – March 08 snap shot
Commissioned & In Progress
Number of HEIs
Number of projects
Total value of projects -
8
93
£ 1,870K
Projected savings
Annual financial savings Lifetime Energy Saving Annual CO2 saved
Total CO2 saved
-
£
515K
£ 4,389K
3,417T
29,000T
Average payback
-
3.63 years
Average fund age is only 12 months, all clients are
ahead or in line with schedule
Salix Finance - working with Higher Education
HEI New Phase I clients will be
University
Durham
Exeter
Newcastle
The Open
Portsmouth
Sheffield
York
Aberdeen
Abertay
Napier
Strathclyde
Total
Salix Fund
Total Fund
£2,219K
£4,438K
Salix Finance - working with FE Colleges LSC
Salix / LSC Pilot
Assessed applications
Number of Colleges
Number of projects
Total value of projects
-
230
1,248
£ 22,721K
Projected savings
Annual financial savings Lifetime Energy Saving Annual CO2 saved
Lifetime CO2 saved
-
£ 6,441K
£ 49,208K
47,047 T
359,457 T
Average payback
3.52 years
-
Grant payments to be made in April 08, projects to be completed
by September 08
Salix Finance
HEI activities – new opportunities
from April 08
SALIX Finance – new HEI opportunities
•
New Salix Funds are now confirmed - DEFRA press release
13th of March
•
30 Million over three years
•
10 Million earmarked for HEI
•
Intention is that these funds will be used in conjunction with
HEFCE Revolving Green Fund – Institutional Fund
•
Time line for 1st round of applications anticipated to be July
08 closing date and September 08 award
(2 years x 5)
The HEFCE – SALIX Partnership
Two strands to the funding with an annual application process
•
An institutional small projects fund
- Size £20M
- This will use the traditional Salix model with HEFCE
providing the match funding on behalf of the HEI
•
A transformational fund
- Size £10M
- The purpose is to tackle large projects that will transform
the institutions energy consumption and reduce its
emissions
The Institutional Small Projects Fund
•
HEFCE will match Salix’s funding on behalf of each HEI &
fund size will be determined on an individual application
basis
•
HEI’s will be required to contribute a minimum of 25% of
their fund value but they are encouraged to exceed this and
those that do so will be preferred in the selection process
•
HEI’s will be able to use their contribution to fund projects
that fall outside Salix’s criteria but still give savings
Closing date of Consultation is 21st of April 08
The Institutional Small Projects Fund –
Assessment Criteria
Applications to the fund will be assessed using Salix’s
current assessment process. Considering the following
•
The number of ‘ready to go’ projects at the time of the
application
•
The presence of energy management expertise and
capability to manage the fund
•
The level of financial contribution from the institution
Salix Finance
Recent improvements to the fund
Changes over the last 12 months - New
structure
Starting in February 07 we brought our client facing activities inhouse and set up a team of Client Relationship Managers. The
aim was to take a more pro-active approach to working with
clients. This has resulted in:
• More time being spent with clients on-site and in group
meetings
• Improved ‘key point of contact’ communication
• Support in accelerating project implementation and carbon
delivery
• Better sharing of information and technology
• Two way feedback helping us to continue to improve the
business model
Changes over the last 12 months - The
application process
To support recruitment of new clients we have appointed a
Business Development Manager. We have also worked hard on
the application process resulting in:
• Hands-on support to explain the Fund and support the
application process
• A revised application document with only 7 pages. Previously it
was 30 pages
• A compliance tool complete with supporting technical notes that
logs projects and provides both financial and carbon savings in a
consistent format
• Sharing of approximately 1000 projects showing clients what is
working in their sector
Changes over the last 12 months - Making the
model work for you
Making use of the scheme management charge (SMC)
For each project undertaken, a client can exercise a right to
take up to 15% of the project spend as a scheme management
charge which can then be used for the following options:
•
•
•
•
•
To fund resource to run the Salix programme
To support consultancy investigations to establish new Salix
projects
To pay for investment in M&T
To pay for Infrared Thermography technology
To help make a new non-compliant project compliant, based
on a 20% non-repayable contribution option
Salix Finance
St Andrews - A Client’s perspective
Skills for Sustainability
Exeter
Effective Energy and Carbon Reduction
David Stutchfield
Energy Officer
University of St Andrews
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St Andrews University Overview
• Voted Best University in Scotland 2007 (source - Sunday
Times UK University Guide table 2007)
• 1st place in Scotland People and Planet SD League table 2007
• 6,808 students (UG &PG)
• 1,884 staff
• £120M annual turnover
• 229,792 m2 building stock
• 180 buildings from 1410AD
Measure your footprint - HECMP
2007 UNIVERSITY CARBON FOOTPRINT - 33,000 tonnes
(Note - does not include construction w aste; emboddied carbon, student travel etc)

procurement
30.6%
energy
waste
water use
energy
51.6%
fuel use
0.3%
staff business mileage
fuel use
procurement
staff business mileage
15.3%
w ater use
0.2%
w aste
2.0%
Utilities Strategy
 4 Utilities Workstreams - Ultimate aim
to be carbon neutral for energy
 Information and tools (M&T and AMR
systems)
 Behaviour (Awareness Interhall Energy Competion,
Psychology project)
 Investment (Salix)
 Renewables
 Higher Education
Carbon
Program
Effective
use ofManagement
the advice bodies
 Partnership Agreement with Carbon Trust – gives access to significant
consultancy of Site Surveys for carbon reduction each year.
 Energy Reduction in buildings
 Renewable Resources
 Design Advice on new buildings from Carbon Trust
 Green Fleet / Travel Plan Review from Energy Saving Trust
 Low Carbon Technologies grants from Energy Saving Trust and Low
Carbon Buildings Phase 2 (GSHP, Solar PV & Thermal etc)
 Big Splash Water Saving Review from Envirowise
 Salix funding for specific projects
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Effective Use of Salix Fund
• Develop program of works based on HECMP or Carbon Trust
Site Survey reports
• Work out what is the maximum the University can afford to
match fund, and what is the maximum number of projects
you have time to implement.
• With Salix Funding of £524K, and a total of £1,068K to be
spent over a two year period, St Andrews has the largest fund
value of all the pilot universities.
Operation of Salix Fund
•
•
•
•
•
Examples of work undertaken
Loft Insulation
Pipe insulation
Window draught sealing
Refrigeration motor controls
Utilities – Renewable Energy
Solar thermal
Wind
Geothermal
Gas and Biomass CHP
Thank
You
www.st-andrews.ac.uk/environment
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Salix Finance
Questions?
25 Southampton Buildings, London WC2A 1AL
t: 020 3043 8800
[email protected]
f: 020 3043 8799
www.salixfinance.co.uk
Salix Finance - Maintaining the Fund
Available investment per year
Typical Fund Value - £200K
£250
£200
£100
£100
£K
£150
£100
£100
£50
£100
£0
1
2
3
4
5
6
Year
Salix
HE
7
8
9
10
Salix Finance - Maintaining the Fund
Available investment per year
Typical Fund Value - £200K
£300
£250
£40
£K
£200
£100
£150
£100
£8
£100
£100
£50
£8
£8
£8
£100 £40
£40
£40
£40
£8
£40
£40
£40
£40
£40
3
4
5
6
7
£0
1
2
8
Year
Salix
HE
Savings 1
Savings 2
Savings 3
9
10
Salix Finance - Maintaining the Fund
Available investment per year
Typical Fund Value - £200K
£300
£250
£40
£K
£200
£100
£150
£100
£100 £40
£18
£8
£40
£21
£18
£8
£40
£25
£21
£18
£8
£40
£40
£40
£40
£40
£30
£25
£21
£18
£8
£40
3
4
5
6
7
£100
£8
£100
£50
£0
1
2
£28
£30
£25
£21
£18
8
£30
£25
£21
£26
£24
£28
£30
£25
9
10
£24
£28
Year
Salix
HE
Savings 1
Savings 2
Savings 3
Savings 4
Savings 5
Savings 6
Savings 7
Savings 8
Savings 9
Savings 10
Salix Finance - Maintaining the Fund
£400k Fund 75% Recycling - 2 Year Six Monthly Tranches
Salix
LA
Loan repayments
140
Must reinvest min 60% of annual
repayments
120
£000s
100
80
60
40
20
0
1
2
3
4
5
6
Six Month Tranche Number
7
8
9
10