mo ti presentation

Robert Blackie, Foaad Tahir, Jun Xing, Ruel Brathwatie, Guangrui Xiao

This work has been undertaken as part of a student educational projectand the material should be viewed in this context. The work does notconstitute professional advice and no warranties are made regarding theinformation presented. The Authors, Judge Business School and itsFaculty do not accept any liability for the consequences of any actiontaken a result of the work or any recommendations made or inferred.

Background

General study

Regulations Renewable technologies

Case study Grosvenor House Duke’s Wharf

Conclusion Recommendation Constraints and risks

Government’s energy strategy

Annual CO2 penalty charges

Requirements of new and existing properties

Expectation from existing and future tenants

Opportunity for energy strategy

Potential Revenue

Improve company image and marketability ( tenant’s green agenda)

What are the market opportunities for implementing small scale renewable energy production?

How supportive is the market place to the purchase of small scale renewable energy production?

Legislative• Is it legally compliant?

Technological:• Is it feasible?• Is it efficient?

Financial:• Is it affordable?• Is it profitable?

Case StudyGrousvenor HouseDuke’s Wharf

Most of the information was gathered from online sources.

Some data are provided by the client.

Incentives

Renewable Obligation Certificates (ROC)• ROC Trading: valued at ₤51.81 and sold at ₤35.76• Banding of ROCs• Buy-out fund: %age of total ROCs received at ₤18.59

Enhanced Capital Allowances (ECA)• 100% on taxes refunded• Loss :19% capital cost deducted• Profit: 20% taxable capital cost

Penalties

Carbon Reduction Commitment (CRC)

• Carbon allowances are purchased at ₤12/tCO2 (2010 – 2013)

• Carbon cap introduced and allowances increase to ₤16/tCO2 as of 2013

• CRC League tables in 2012

Climate Change Levy (CCL)

• Tax of 0.456p/kWh

WIND TURBINEWind turbines are the most widely used renewable energy technologyIt presents the best solution to mitigate CO2 emissionscumulative capacity reached 120.8 GW at the end of last yearsupplying around 260 TWh of electricity

HORIZONTAL AXIS

VERTICAL AXIS

CHP (Combined Heating and Power)

The simultaneous production of useful heat and electricity . The conversion of primary fossil fuels to electricity is a relatively

inefficient process. Even the most modern Combined Cycle plants can only achieve

efficiencies of between 50–60 %. The very best CHP schemes can achieve fuel conversion efficiencies of

the order of 90%.

Efficiency gains of CHP

SOLAR PHOTOVOLTAIC CELL

A solar cell or photovoltaic cell is a device thatconverts solar energy into electricity by thephotovoltaic effect.

Assemblies of cells are used to make solarpanel, solar modules, or photovoltaic arrays.

SOLAR ANGLES

The solar altitude angles vary not only duringthe day but also during the year.

At noon the Sun is at peak altitude angle of 38oat spring and autumn equinox, while it is at 60oat summer solstice and at 12o at winter solstice.

Grosvenor HouseKey Facts-energy consumption: 1,724,830kWh-annual CO2 emissions: 624tonnes -total floor area: 4,566sq.m -

GH

With Daikin VRV

Wind Turbine Solar

Without

Daikin VRV

CHP

Natural Gas CHP

Biogas CHP

Average heating value of 260 kW (12 hour / day heating requirements for 200 days / year).

Two Daikin REYQ-P8-48 systems.

Extra amount of electricity required would thus be 753,264 / 3.94 = 191183 kWh.

Total electricity requirement for Grosvenor House : 1134638 kWh / year.

Quality mordenoffice accommodation

Characteristics 50kW

Installed Cost(£) 100,000

Output(kWh) 146,115

Total Annual Revenue (£) 2010‐2013 19,261 20,743 22,227

2013‐ 19,582 21,065 22,548

Estimated payback (yrs)5.4 5 4.4

Whole life net revenue320,334

Roof area : 600m2. Annual solar intensity value:1100kWh/m2

50% roof area usage Available solar energy: 330,000kWh Thin film technology Operating efficiency :14.6% Capacity : 45kWp

Annual energy generation :48,180kWh CO2 savings: 26,499 kg.

Characteristics 45kW Nanosolar PV


Output(kWh) 48,180

Total Annual Revenue (£) 2010‐2013 9,020 10,411 10,900

2013‐ 10,026 10,517 11,006

Estimated payback (yrs)3.5 3.2 2.9


Annual energy requirements: 3,827,929 kWh of electricity and 879,227 kWh of heating.

300 kW CHP plant would be operated at a Power: Heat ratio of 1 Fuel requirements: Natural gas 221,699 m3 , Biogas 350,624 m3

CO2 emission reduction of 228,600 kg.

Characteristics 300 kWe Gas turbine CHP


Output(kWh) 943,455

Total Annual Benefit (£) 2010-2013

54,284 63,667 73,436

2013- 56,949 65,243 75,101

Estimated payback (yrs) 2

Whole life net revenue (20 yrs) 1,145,193

Average electricity price 4.1 p

With the Daikin VRV system in GH, windturbine could provide the largest shareof cost-efficient renewable energy

CHP is a potential cost-effective solutionto meet combined heating and electricalenergy

Lower tenant charge for renewableenergy does not affect profit greatly butwill be attractive for tenants.

When and if hydrogenbecomes available fromrenewable sources, fuelcell CHP from renewablesources may be possiblein Grosvenor House.

Small scale renewable energy production can help Targetfollow to meet UK Government’s energy strategy and to increase revenue

Implementing proper technology for specific properties is feasible and profitable

Renewable energy strategy can improve company image and marketability

Cheaper energy from renewable energy is attractive for tenants

Renewable technologies tend to be geographically specific. Targetfollow has a portfolio of projects spread widely across the U.K .

The case study only focus on the implementation of renewable technology for a specific site.

The focus of this study is only on existing, proven and mature renewable technologies.

HORIZONTAL AXIS VERTICAL AXIS

Energy Supplies

Usage in Units kWh/Unit Use in kWh kg/kWh Tonnes of CO2

Mains Electricity

940,870 1 943,455 0.550 518.9

Natural Gas 900 31 28,111 0.194 5.5

Oil 62,600 12 753,264 0.265 199.6

GROSVENOR HOUSE

Velocity (m/s) Duration (hours)1 5432 8303 10194 11025 10836 9867 8398 6729 508

10 36311 24712 15913 9814 5715 3216 17

Rated speed (m/s)

Energy (kWh)

Blade Radius (m)

Capacity Factor

CO2 Reductions (kg)

8 176659 12 0.40 971629 146115 10 0.33 80363

10 119702 9 0.27 6583611 97519 7.5 0.22 5363512 79284 6.5 0.18 43606

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Wind Speed (m/s)

Freq

uenc

y (h

ours

)

0

5000

10000

15000

20000

25000

30000

Ener

gy (k

Wh)

FrequencyEnergy

CHP EFFICIENCY

WE - Net useful power outputΣQTH -Net useful thermal outputsQFUEL - Total fuel input

PROPERTIES

Mass LHV-base HHV-base

LHV-base HHV-base

Volumetric Volumetric

# FUEL TYPE Density Energy Density Energy Density Energy Density Unit** Cost CO2 Emissions

kg/m3 MJ/kg or GJ/ton GJ/m3 GJ/m3 Cost $ $/GJ kg/GJ

Solid Bulk Solid Bulk Solid Bulk

1 Brown Coal - VIC 1120 860 8 9 6.9 5/t 0.63 93.3

2 Black Coal - NSW 1450 940 24 34.8 22.6 30/t 1.25 90.7

3 Petrol n/a 34.2/l 0.73/l 21.4

4 Auto Diesel 842 n/a 45.7 38.5 0.74/l 19.3 69.7

5 LPG n/a 26.2/l 59.4

6 Natural Gas n/a n/a 37.2/l n/a 13.8 50.9

7 Sawdust (wet) 1100 367 11.85 13 4.3 20/t 1.69 90

8 Sawdust (air dry) 800 267 17.06 13.6 4.6 20/t 90

9 Woodchips (wet) 1100 550 11.85 13 6.5 35/t 2.95 90

10 Woodchips (forest dry) 800 400 17.06 13.6 6.8 35/t 90

11 Wood Pellets n/a 705 19.75 13.9 165/t 8.35 90

12 US Residues n/a 340 11.6 3.9 38/t 1.64 90

13 Charcoal 30

14 Torrefied Wood 600 300 21.5 12.9 6.5 n/a

15 Loose saw dust (dry) 200 18 3.6

16 Wood pellets (dry) 1300 650 18 23.4 11.7

17 Torrefied pellets 1300 650 22 28.6 14.3

18 Softwood chips (dry) 190 20 3.8

19 Corn 760 19 14.4

20 Soybeans 770 21 16.2

21 Coconut shells 1/4" 540 20.5 11.1

22 Biodiesel 920 41.2 37.9

23 Diesel 880 45.7 40.2

'Thin Film' Polycrystalline Monocrystalline 'Hybrid'*

Appearance

Efficiency at STC** Good 7 - 8% Very good 11 - 13% Very good 14 - 16% Excellent 17 - 19%

Efficiency in overcast conditions

Excellent Good Good Excellent

Area needed / kWp*** (for

modules)Unisolar modules: 16m2 Sharp modules: 8m2 Sharp modules: 7m2 Sanyo modules: 7m2

Area needed per kWp (for BIPV)

Solar metal roofing: 23.5m2

Glass-glass laminate: 25m2

C21 tile: 10m2

Glass-glass laminates: 10m2 - 30m2

(depends on cell spacing)

Sunslate: 10m2

Glass-glass laminates: 8m2 - 30m2

(depends on cell spacing)

n/a

Annual energy generated per kWp

(south-facing system, 30 deg' tilt)

900 kWh/kWp 750 kWh/kWp 750 kWh/kWp 900 kWh/kWp

Annual energy generated per sq m

(south-facing modules, 30 deg' tilt)

55 - 60 kWh/m2 90 - 95 kWh/m2 105 - 110 kWh/m2 125 - 135 kWh/m2

Annual CO2 savings per kWp

390 kg/kWp 325 kg/kWp 325 kg/kWp 390 kg/kWp

Annual CO2 savings per sq m

25 kg/m2 40 kg/m2 45 kg/m2 55 - 60 kg/m2

Energy Performance Certificates (EPC)

Display Energy Certificates (DEC)

Characteristics 50kW Installed Cost(£) 100,000 Operational Cost (£) 3,000Output(kWh) 146,115 ROC Income annually (£) 7305.21ECA Income annually (£) ------CCL savings annually (£) 643.52CRC savings annually (£) 964.32 (2010 – 2013) 1285.81 (2013

onward)

Electricity income annually (£)

10% less Market price 10% more

13,347 14,830 16,313Total Annual Benefit (£) 2010‐

2013 19,261 20,743 22,227

2013‐ 19,582 21,065 22,548

Estimated payback (yrs)5.4 5 4.4


Characteristics 45kW Nanosolar PVInstalled Cost(£) 31,638Operational Cost (£) 0Output(kWh) 48,180ROC Income annually (£) 4,984.95ECA Income annually (£) 6,327CCL savings annually (£) 219.74CRC savings annually (£) 318 (2010 – 2013) 424 (2013 onward)

Electricity income annually (£)10% less Market price 10% more

4,401.24 4,890.27 5,379.3Total Annual Revenue (£) 2010‐

2013 9,020 10,411 10,900

2013‐ 10,026 10,517 11,006

Estimated payback (yrs) 3.5 3.2 2.9


Characteristics 300 kWe Gas turbine CHPInstalled Cost(£) 160,182

Operational Cost (£) 4,981Fuel Cost 63,683-31,826 (heating saving) = 31,856

Output(kWh) 943,455 ROC Income annually (£) -------

ECA Income annually (£) 32,035

CCL savings annually (£) 0 (exemption from ccl)

CRC savings annually (£) 4,744 (2010-2013) 6,320(2013 onward)

Electricity income annually (£)

10% less Market price 10% more

86,184.61 95,760.68 105,336.75

Total Annual Benefit (£)

2010-2013

54,284 63,667 73,436

2013- 56,949 65,243 75,101Estimated payback (yrs) 2

Whole life net revenue (20 yrs) 1,145,193Average electricity price 4.1 p

Characteristics 300 kWe Gas turbine CHP


Operational Cost (£) Various

Output(kWh) 943.455

ROC Income annually (£) 97760.81

ECA Income annually (£) 32036.40

CCL savings annually (£) ------

CRC savings annually (£) 7488(2010-2013) 9984(2013 onward)

Electricity income annually (£)10% less Market price 10% more

86,184.61 95,760.68 105,336.75

Total Annual Benefit - - -

Estimated payback (yrs) -

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