supported by capital ambition, the london energy project enables the public sector to achieve...
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Supported by Capital Ambition, the London Energy Project enables the public sector to achieve efficiencies through smarter energy buying, improved process and carbon reduction
Green Governor Guide
CRC Energy Efficiency Scheme
23 March 2010
Amanda de Swarte
London Energy Project
Head of Improvement and EfficiencyT: 020 8489 1102
Smarter buying. Less carbon. A better deal.
What we do and why
Measurable cashable and non-cashable savings and efficiencies
Achieve better value through strategic market management
Accelerated culture change, increased capability and efficient work practice within boroughs
Improved reputation and management of risks and costs
Managing the impact of new regulations and policy initiatives
31 out of 33 London Boroughs authorising LEP to act on their behalf
Smarter buying. Less carbon. A better deal.
Our recent achievements
“huge savings, improved management efficiency. The benefits are clear” GO Awards judges comments 2009
CRC Guide and Toolkit used by over 350 public sector organisations
Ready to launch later this year
GS1 XML Global Invoice standard
Smarter buying. Less carbon. A better deal.
New Statutory Duties for SchoolsThe CRC EnergyEfficiency Scheme
Smarter buying. Less carbon. A better deal.
Background
Schools have an important role
Models of good practice
For pupils and communities
15% of public sector carbon emissions from schools
⅓ of school emissions from their buildings
All schools to be sustainable by 2020
The CRC Energy Efficiency Scheme is
UK wide mandatory emissions trading scheme aimed at larger private and public sector organisations
Will apply to 5 – 6,000 organisations including most Local Authorities
Begins in April 2010
Smarter buying. Less carbon. A better deal.
Key features
Participating LAs responsible for emissions from all their maintained schools,
and any Academies and City Technology Colleges in their area.
LAs determine “residual sources” with 90% de minimis applied across LA
portfolio.
Monitor and report their emissions each year
Buy and surrender carbon allowances to cover actual emissions
Initially at fixed
Eventually as part of an auction process
Performance League Table available to all
Smarter buying. Less carbon. A better deal.
Does this include all schools?
Yes – most Maintained Schools
Foundation and Trust
Voluntary Aided
Voluntary Controlled
City Technology Colleges
Academies
This applies even if the school buys its own energy or pays it own bills directly to the supplier
Does not apply to Independent Schools
PFI operated schools are also included but may be as part of their PFI operator rather than their Local Authority
Smarter buying. Less carbon. A better deal.
What does this mean for Local Authorities?
Defined as Responsible Persons
Record and collate data about the energy consumption of its Maintained Schools
Purchase and surrender allowances to cover their schools’ actual emissions
Provide Footprint and Annual Reports
Typical London Local Authority will buy allowances worth £0.5M per year
Schools typically represent 40-60% of total emissions
Smarter buying. Less carbon. A better deal.
What does this mean for schools?
Legal and administrative duties within the CRC
Defined as an Associated Person
Provide all Reasonable Assistance to the Local Authority
Gather and report all energy data to the Local Authority
Schools will not be charged for the allowances a Local Authority must purchase on their behalf
Schools can be charged for any losses incurred due the schools’ inability to reduce its emissions
Schools may also receive a financial bonus if the Local Authority performs well as result of schools reducing their emissions
Local Authorities can pass on fines incurred as a result of failure to report or reporting inaccurate emissions provided by schools
Smarter buying. Less carbon. A better deal.
What must a school do?
Request Annual Statements from your energy suppliers
All gas and electricity
Other fuels e.g. heating oil, LPG etc
Collate an evidence pack
Annual Statements
Copies of invoices
Meter readings
Report the data to your Local Authority
Read meters regularly
Save energy
Smarter buying. Less carbon. A better deal.
When must this be done?
1. Request an Annual Statement from Electricity Suppliers for the calendar year 2008 – NOW
2. Start recording energy use and collating an evidence pack – FROM April 2010
3. Request Annual Statements from all energy suppliers covering 1 April 2010 to 31 March 2011 – BEFORE28 February 2011
4. Provide evidence pack to your Local Authority – BEFORE 30 June 2011
5. Repeat steps 3 and 4 each year
6. Start saving energy – NOW
7. Use your Local Authority energy supply contracts,
• better value for school
• Ease of access to data
Smarter buying. Less carbon. A better deal.
Where can schools get support?
From your Local Authority
The Carbon Trust - www.carbontrust.co.uk
ECO-schools – www.eco-schools.org.uk
Sustainable Schools – www.sustainablelearning.info
Smarter buying. Less carbon. A better deal.
Meeting the requirements of the new Carbon Reduction Commitment.
Do I qualify or need to register
Who is in my CRC organisation
Complex legal issues, PFI, landlord tenant relationships
Taking an organisation-wide approach
Linking with other corporate priorities
Pulling together resources across directorates
Gathering data
Planning and communication
Engaging with schools
Compliance is not enough
Carbon Abatement Strategy
DOWNWARD PRESSURE ON BUDGETS
Smarter buying. Less carbon. A better deal.
Assess qualification for Introductory Phase
Mandatory auction based emissions trading scheme
Targeting UK energy use emissions from business + public sector organisations
Medium / Large organisations: HHM electricity > 6,000 MWh in 2008
Auction revenue recycled to participants
HH electricity consumption is above 6,000 MWh per year
HH electricity consumption is less than 6,000 MWh per year
Legally required to register
Web based tool
Disclose identification information
Submit list of HH meters settled on HH market
Disclose total HH electricity consumption
Named director
Legally required to submit an information disclosure
Access the same Web based tool
Follow guidance and complete information
disclosure
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How performance works (early years)
Three metrics:
1. Compulsory absolute metric
Change in annual emissions relative to preceding 5 year average
2. Voluntary early action metric
Extent of voluntary AMR
Extent of Carbon Trust Standard or
recognised equivalent
3. Voluntary growth metric
Change in emissions per unit turnover/revenue expenditure
Smarter buying. Less carbon. A better deal.
What if LA doesn’t comply?
Failure to register
Failure to disclose information
Failure to provide footprint report
Failure to provide annual report
Incorrect reporting
Failure to hold and cancel sufficient allowances
Failure to keep adequate records
Mainly financial penalties
Failure to comply with key obligations
Proportional to the carbon footprint of the participant
Smarter buying. Less carbon. A better deal.
Reaching out to schools
Local Authorities need to tell their schools about the CRC NOW!
Specially designed leaflet, explains:
The broader context for schools
The schools responsibilities
The Local Authorities responsibilities
Some practical steps to get prepared
Simple timeline
Opportunity to build on existing relationships
Additional services – DECs, energy buying, efficiency advice, AMR etc
Smarter buying. Less carbon. A better deal.
Compliance is not enough
The CRC must be complied with
The CRC is not optional (for those that qualify)
The CRC does have teeth but
Simply complying misses the point of the CRC
Could harm corporate reputations
Lead to financial losses
The key is to use the CRC to drive down energy use
Each t/CO2 saved equates to c£200 reduction in energy bills
Each t/CO2 saved improves performance in the CRC
Participants must develop a Carbon Abatement Strategy and invest appropriately
Smarter buying. Less carbon. A better deal.
Obtaining the necessary data
Schools are designated Associated Persons in the regulations
As such they must give all reasonable assistance
The exact data to be provided is yet to be fully defined
LAs must maintain separate records for their schools including:
CRC Footprint data
Residual Measurement List
For LAs buying for their schools this will be easier
For all it will require improve liaison and explicit instruction and milestones
Begin collecting data NOW
Smarter buying. Less carbon. A better deal.
Recovering the costs
The regulations do not allow a Local Authority to recover the cost of administering the CRC or buying allowances from the schools or the Dedicated School Grant (DSG)
Current DCFS position - Local Authority to charge schools (or the Schools Budget) any penalties which are incurred through schools failing to reduce their emissions (or apply a bonus). If resolution allows this can be at an individual school level.
With up to 60% of emissions resulting from Schools this issue is significant for most LAs
Initial cost of allowances
Potential of schools to drag down overall performance and therefore increase costs in the CRC
Schools also have building, maintenance, culture, education, staff issues
Smarter buying. Less carbon. A better deal.
Corporate and Schools
12
3
14,000,000
14,500,000
15,000,000
15,500,000
16,000,000
16,500,000
17,000,000
17,500,000
CO
2 (
kg
)
Years
Comparison trend of CO2 emissions by Schools vs Council Operations
Total - Schools
Total - Others
Smarter buying. Less carbon. A better deal.
Driving down school emissions
Schools could account for up to 60% of emissions
Experience shows that school emissions are increasing
Increased use of IT
Increased use of air conditioning
Increased opening hours & broader curriculum
DEC rating indicate newer schools less efficient
No ability for LAs to force schools to reduce energy use or to invest in energy saving measures
Prudential borrowing can be charged to the DSG where the investment results in savings on recurrent expenditure greater than the cost of borrowing but;
Ring-fencing money within DSG for energy saving measures is difficult as there does not appear to be a way to recover capital through DSG revenue streams
Governor and schools forum involvement and support essential
Smarter buying. Less carbon. A better deal.
Carbon abatement strategy
Good practice to develop and trial a carbon abatement strategy during the Introductory phase
Essential that a carbon abatement strategy is defined before the start of the capped phases in April 2013
Why spend more buying allowances when it would be more beneficial to invest in efficiency?
Smarter buying. Less carbon. A better deal.
The definition of AMR
Important for qualification – electricity AMR
The meter needs to be capable of capturing consumption data on at least a half hourly basis;
The meter must be the main fiscal meter for that supply and not a clip-on or sub metering device.
The meter is read remotely;
The electricity consumption data needs to be made available to the customer.
Important for the Early Action metric
Gas AMR definition amended to reflect available technology
Voluntary AMR includes:
Meters installed by your supplier as part of the license – must have the data though
Inventory based dynamic supply, traded on the HH settled market
Smarter buying. Less carbon. A better deal.
Schools AMR
PfS announcement for display meters, going out to schools soon
Installation of a sub-meter and data-logger that will interface with each school’s ICT network to provide information via software that can be loaded on existing PCs
The display meters will
not be acceptable to suppliers for billing purposes
provide energy data at each school site for education purposes
Will not help schools/LAs comply with their legal obligations (e.g. CRC and have no Early Action Metric benefit)
Local Authorities will still need to approach schools to install AMR for Early Action Metric benefit (be aware schools forum and installation constraints)
Confusing for schools and difficult for LAs to communicate
Smarter buying. Less carbon. A better deal.
Strategic and operational practices to help local authorities meet climate change and efficiency targets
Tell decision makers and key participants
Work with suppliers and service providers
Common CRC statement format
Best Practice audit pack
AMR strategy
Emissions forecasting plan
Carbon trading risk managed approach
Data is king – not sexy and not easy to compile, understand or
manage
Smarter buying. Less carbon. A better deal.
Meter management
Site XXX Park
Address 176-178 XXX Park
Postcode N17 XXX
Location Meter in boiler room in basement
GPS location 53:19:17N /2:13:27W
Meter Serial No S88E163754
MPAN 1044178899644
Easting 528798
Northing 897825
Ladder Required
Keys FB1
Opening Hours Mon-Fri 9am-3pm
Contact Details 020 7777 9999
Fuel ID Elect
Meter photo Id PA998877
Smarter buying. Less carbon. A better deal.
What reports are required
Registration by 30th September 2010 All mandatory and voluntary HH settled meters in 2008 and associated consumption (kWh) from 2008
calendar year
Any NHH electricity covered by compliant voluntary AMR in 2008
Any dynamic unmetered supplies (eg for street lighting) in 2008
The qualification year for the 1st capped phase beginning April 2013 is the scheme year April 10 – March 2011.
Carbon Footprint Report by 29th July 2011 (last working day of the month)
Once per phase (not annual), stays the same for entire phase
Based on actual emissions April 10 – March 2011
Defines CRC organisation, core and residual sources included in the CRC (those energy supplies which must be reported and for which allowance must be surrendered)
The Footprint year for the 1st capped phase is the scheme year April 11 – March 2012. The Next Footprint report is required by 31st July 2012.
Annual Report by 29th July 2011
Compiled each year
Reports actual energy consumption (kWh) (as defined in CRC footprint) April 10 – March 2011
Best Practice - Forecast Report by 1st April 2011
Compiled each year, tracks energy use and emissions from April 10 – March 2011, in order to buy allowances
For internal use and part of forecast strategy
Smarter buying. Less carbon. A better deal.
Opportunities? Recycling Phases
Compliance Year
Financial Year
Purchase in Year (April)
Surrender in Year (July)
Recycling paid (Oct)
Performance in year
Bonus/Penalty percentage applied
1 2010-11 Reporting Only N/A N/A
2 2011-12 2011Footprint & annual report
2011 2010-11 10%
3 2012-13 2012(capped phase Footprint) & annual report
2012 2011-12 20%
4 (capped phase)
2013-14 2013 annual report 2013 2012-13 30%
Year 1 (Oct 2011) Year 2 (Oct 2012) Year 3 (Oct 2013)
Early Action Metric 100% 40% 20%
Absolute Metric 0 % 45% 60%
Growth Metric 0% 15% 20%
Smarter buying. Less carbon. A better deal.
Opportunities - Early Action Metric AMR
Supports other agendas
CRC early actions
? Reduces energy consumption
Reduces invoice administration time and budget management
Provides clear evidence for energy management activity
Smarter buying. Less carbon. A better deal.
HH consumption
Showing flood lighting at a training site
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Value of Data
How much did this energy waste cost?
£1,460.00
What did LFB resolve the problem?
Fitted a timer inline with the photo cell to turn the lights offwhen not required.
How much did that cost?
£800.00
How long was the payback?
0.54 years
Smarter buying. Less carbon. A better deal.
Variable Speed Drives in Leisure Centre
Present (kWh) Previous (kWh) Saving Move%
Week Total 36,020 42,514 6,496 Kwh -15.3
Smarter buying. Less carbon. A better deal.
Variable Speed Drives in Leisure Centres by LB Haringey
Ensure consumption is determined using only theoperating hours of the centre and not 24 hr usage.
26 units installed in 2 Leisure Centres at total cost of £ 44,607
Anticipated savings of £ 43,860 / year projected
Energy saving £ 33,906
214 tCO2 (@£12) £2568 allowance saving p/a
Payback 1.25 years
Smarter buying. Less carbon. A better deal.
Working together
Essential relationship between individual schools and its Local authority
Essential relationship between governors, headteachers, schools forum
Use some aspects as part of the curriculum
Trading and carbon abatement
Consumption and graphs
Choosing technologies
Culture and behaviour