Download - 2012.06 Final Energy Efficiency In He Is
Association for the Conservation of Energy
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
The impact of energy efficiency and opportunities for demand reduction in HEIs
Darryl CroftSenior Researcher
Association for the Conservation of Energy
Presentation to the TEC Regional Conference 2012Imperial War Museum
27 June 2012
Association for the Conservation of Energy
Presentation message• Positive story:
We are successfully reducing energy demand in the UK
• Lots of opportunities for further reductions + numerous reasons why all sectors, including the public sector, should look to reduce their energy demand, implement efficiency, and adopt better energy management practices.
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
About ACE• We exist to:
“reduce overall energy demand to ensure a secure and sustainable energy future”
• We do this by lobbying, campaigning and carrying out research to achieve sensible and consistent policy, legislation and targets
• ACE is no ordinary trade association - we don’t push or research specific products or technologies
• We research and push for strategic policy and specific legislation that saves final energy use
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
For example…This past week ACE have been involved in:• The European Commission’s Reasoned Opinion on the UK’s reduced VAT
rate on ‘Energy Saving Materials’“VAT on ‘Energy Saving Materials’ in a nutshell” summary
• Pushing Government to include energy demand within the draft Energy Bill and Electricity Market Reform proposals
• Generating support for the Energy Bill Revolution campaign that would see revenues from the EU ETS and CPF recycled to consumers in the form of energy efficiency support
• Looking at how energy efficiency can offset increases in domestic energy bills.
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Members
www.ukace.org
Association for the Conservation of Energy
The ‘good’ message
“The cheapest, cleanest and safest way of addressing our energy policy objectives is to use less energy.”
- Energy White Paper, 2003
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Energy Objectives
Reduced Carbon emissions
Improved Security of SupplyImproved Welfare/Productivity
Association for the Conservation of Energy
The ‘good’ message
“The cheapest, cleanest and safest way of addressing our energy policy objectives is to use less energy.”
- Energy White Paper, 2003
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Good for environment
Helps ‘keep the lights on’Lowers energy bills
Energy Objectives
Association for the Conservation of Energy
“People don’t want to have to use less energy”
“We’re using more and more energy in our lifestyles”
“Energy saving won’t stop the lights going out”
“If you improve efficiencies, people just waste more”
“The difference that improved efficiency makes is rather small”
=> Often viewed as ‘a bit woolly’ at best – something that it’s good to do, but that doesn’t make the world of difference.
The frequent messages
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
What have we achieved to date?
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Global energy savings
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
EU 25 Energy Savings
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
UK Domestic Energy Savings
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
UK Domestic Energy Savings
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Insulation energy saving
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Association for the Conservation of Energy
UK Domestic Energy Savings
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Heating systems efficiency energy saving
Insulation energy saving
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Association for the Conservation of Energy
Not just about avoided demand...
....last ten years have seen real reductions in the UK.
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
UK Energy Demand
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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UK Energy Demand
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
UK Energy Demand
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Energy Intensity
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Service Sector
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Domestic Demand
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Lighting and appliancesCookingWaterSpace heating
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Association for the Conservation of Energy
Energy Efficiency of Homes
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Domestic Lighting and Appliances
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Domestic Lighting and Appliances
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
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ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Domestic Lighting and Appliances
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Domestic Lighting and Appliances
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
20002001
20022003
20042005
20062007
20082009
20100
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“In 2006 National Grid’s forecast of peak demand for 2012-13, the year we are in, was 68 gigawatts. Their forecast now is 57 to 59 gigawatts. The principal reason for that is demand destruction. Two-thirds of it, at least, is due to energy efficiency. It has gone. ”
Association for the Conservation of Energy
The story so far…• Improved efficiency has gone beyond negating some
additional demand:
across most sectors, the past 10 years has seen a reduction in energy demand in the UK
• This has been relatively easy and uncontroversial:– No huge lifestyle changes – No unpopular enforced technologies– Just sensible policies and regulations
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Why ‘do’ improved efficiency and better energy management?
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Why ‘do’ improved efficiency and better energy management?
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Rising fuel prices
Environmental leadership
/CSR
Availability of low
cost/financeable opportunities
Availability of finance
Opportunity Drivers Mechanism
Association for the Conservation of Energy
Efficiency measures at lowest cost
Association for the Conservation of Energy
Efficiency measures at lowest cost
Association for the Conservation of Energy
Opportunities for energy saving• Consume lots of energy
– 3,900 GWh gas => c.£125m/a– 3,300 GWh electricity => c.£395m/a
• 2010 report from Oakleigh Consulting Limited found that there was between £230m and £530m of potential efficiency projects across the HE estate
• Specific case studies later in the day
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Still lots of uninsulated homes
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Cavity walls Lofts Solid walls -
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Association for the Conservation of Energy
Energy Prices
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Energy Prices
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
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Association for the Conservation of Energy
Energy Prices
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Policy Impacts• Estimated impact of energy and climate change policies on an
average medium-sized business user’s energy bill in 2020
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Carbon Savings / CSR
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Carbon Savings / CSR
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Carbon Savings / CSR
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Carbon Savings / CSR
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Financing Mechanisms• Revolving Green Fund (RGF)
– a partnership fund between HEFCE and Salix Finance Ltd – aims to help higher education institutions (HEIs) in England reduce
greenhouse emissions– Institutions repay the funds through the savings they make – £30 million was available from 2008 to 2011 to provide recoverable
grants to institutions for projects that reduce their emissions. – 384 projects with lighting upgrades and motor controls the most
commonly undertaken projects (collectively accounting for approximately 25% of the total).
– Initial evaluation: If the current trajectory sustained, will lead to carbon and cost savings of up to 8.6% of current English HEI carbon emissions every year by 2020.
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Financing Mechanisms• In the second phase (RGF2), £10 million is available over the
academic years 2011-12 and 2012-13
• Funds targeted in two areas: – small-scale energy efficiency programmes, and – retrofit projects, which will act as exemplars.
• In contrast to the first phase of RGF, HEIs will not be required to make an institutional contribution.
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Green Deal?• Likely to be available to public sector organisations
• What is it?– No upfront cost to pay– Financed through energy bill over lifetime of measures (i.e. 25 years)– Based on assessment: determine measures for which repayments are
lower than savings: the ‘Golden Rule’– Assessment ‘tweaked’ for specific customer
• Why would you be interested? – Removes the need for upfront cost– Potentially longer repayment periods– Potentially easier to access this support– Measures protected by accreditation and redress regime
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Green Deal?Differences with domestic Green Deal:
• Assessment:– Non-domestic buildings are more varied than domestic properties, – Assessment method will necessarily need to be more complex in order
to provide appropriate recommendations for the property. – Will build upon the existing SBEM methodology but will allow the
actual use of the building to be captured
• Measures:– Wide range for non-domestic buildings including:
lighting, ventilation, heating systems, insulation, chillers, variable speed drives, solar shading
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Green Deal?• Golden Rule:
– more flexibility in the non-domestic sector – specialist assessments to provide a more detailed savings estimate,
taking account whole systems of measures and energy tariffs.– not proposing to limit applicable interest rate structures in the non-
domestic sector as businesses should be well equipped to ensure they are entering into a deal which best suits their needs.
– Expectation that Green Deals in the non-domestic sector will be shorter – to reflect payback in line with lease length
• Lots of scepticism about the Green Deal at the moment: we wait to see if it will be the “game-changer” we’ve been promised!
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org
Association for the Conservation of Energy
Conclusion• Energy efficiency is working
• There is lots still to do: including much of the low cost / easy stuff
• Public sector organisations have the opportunities, the drivers, and the means to finance energy reduction
• Implications of saving energy are huge:– Financially: hedge against (very likely) increases in energy costs– Environmentally: saving energy is cleanest and easiest way of
achieving energy objectives– Economically: organisations must remain competitive and could be
more productive– Socially: reduce fuel bills and help alleviate fuel poverty– Politically: hard to sustain decarbonisation agenda in face of rapidly
rising prices, unpopular technologies and uncompetitive businesses.ACE aims to reduce overall energy demand to ensure a secure and sustainable energy future
www.ukace.org
Association for the Conservation of Energy
Thank you
Darryl Croft
Senior Researcher, ACE Research Team
ACE aims to reduce overall energy demand to ensure a secure and sustainable energy futurewww.ukace.org