58
Carbon Saving Public Sector 2011-12 21 July 2011 Newcastle
Carbon Saving Public Sector 2011-12
21 July 2011Newcastle
Welcome and introductions
Andy Johnston, Chief Executive, Local Energy
Learning from mini-audits:CRC best practice for the
public sector
Karen Lawrence, Head of CRC and Consultancy, Local Energy
What are mini-audits?• Examine the documents and data relating to the
Council’s CRC participation • Highlight areas of non-compliance • Identify where additional data or evidence is
required • Make recommendations for future improvement • Share learning with other authorities
• Note: Not a replacement for internal audit
Key areas
• Identification of CRC emission sources• Energy data collection and management• Footprint and annual reports• Evidence pack management• Audit and review• Policies and procedures
Identifying your CRC emissions• Looks simple – but energy management unit
(EMU) doesn’t know everything!• Make contacts in:
– Estates/maintenance– Commercial property– Fleet– Schools– Sustainability/climate change (for renewables)
• Establish a CRC team and include every department that may contribute CRC emissions (even if they are subsequently excluded)
Energy data collection• Actual data
– HHM/AMR data– Supplier data (billing, actual meter reads, annual
statements)– Your own (or third party) meter reads
• Estimated data– Supplier billing, annual statements– EA approved estimation techniques
• Gas/electricity fairly simple – other fuels often more complex
Energy data management
Use whatever suits you, but ensure you have a simple method for capturing everything in one place
• Energy management software (EMS), monitoring and targeting (M&T) software or other electronic data management system
• Manual data capture onto spreadsheet (EA source list tool has been useful for many)
Footprint and annual reports• Key requirement: Core and residual data, actual
and estimated, and exclusions/exemptionsBut don’t forget:• Electricity generation (claiming ROC/FIT or
eligible for EGC)• Early action metric scores (AMR and CTS)• Turnover/revenue expenditure• Carbon management questions• Open text field
Evidence pack management• Devise a clear structure that works for you• Make someone responsible• Ensure documents are protected (cannot
be amended, replaced, deleted)• Use ‘snapshot’ or ‘time stamp’ features
where available (or screenshots)• Avoid duplication – use links if possible• Delete/archive any incorrect or irrelevant
documents
Audit and review
• Carry out internal audit annually• Act on recommendations!• Check and update information regularly
(key personnel, contact details etc)• CRC regulations will change for Phase 2:
your structure/procedures may need to reflect that
Policies and procedures• Write CRC into high-level policies and
action plans (energy policy, carbon management plan, corporate risk register)
• Write a ‘CRC manual’ - and use it!• List key personnel and their role in CRC• Write procedures (EMU should have them
for most things already) and make sure everyone knows about them
Some common pitfalls…
Internal communicationIssues• Difficulty identifying residual and out-of-contract fuel use• Lack of cooperation from other departments• Difficulty identifying who can provide the info.• Limited understanding of CRC and implications of non-
compliance
Solutions• Establish a CRC team• Identify senior contact in each department and make
them responsible• Supply deadline dates and nature of info required –
check progress at every CRC team meeting• Ensure all changes are notified and records kept
SchoolsIssues• Lack of energy data if out-of-contract• No-one responsible for energy/carbon• Limited understanding of CRC and implications of non-
compliance• Limited access to meters
Solutions• Bring into contract wherever possible• Identify a ‘responsible person’ for each site• Implement a meter reading programme (school staff or
third party)• Online data entry for meter readings really helps!
Budgeting for CRC allowancesIssues• Forecasting is new to everyone• Finance department possibly not engaged• Changes during the year will affect number of
allowances required• Level of estimation will affect reported carbon
Solutions• Engage with finance ASAP (CRC team)• Use 2010-11 annual report as a starting point• Consider changes to estate/building stock• Streetlighting – have you changed back from dynamic to
passive?• Will you estimate less?• Prepare best/worse case calculations
CRC Don’t give me advice or ideas… I ’m the CRC manager!
CRC footprint and annual report surgery
The Local Energy team
Break
CRC evidence packs and next steps
Peter Chasmer, Consultant, Local Energy
The Evidence Pack
• Centralises information– Overview document with references– Roles and responsibilities clearly defined– All management levels: policies, procedures and
practices• Structured audit trail
– Estimations and justifications– Carbon Trust and AMR %– Issues, changes and exceptions
Last year’s Guidance2010 – 2011 Footprint Report Evidence Pack Structure
Declaration of Senior Officer, Primary Contact and Secondary Contact The information regarding the Senior Officer, Primary Contact and Secondary Contact can be found at: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\Key Personnel Information Participation in the scheme Declaration of participation in the Carbon Reduction Commitment Energy Efficiency Scheme can be found at: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\Participation in Scheme Definition of “Organisational Structure” Details relating to the organisational structure of The Organisation can be found at: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\Organisational Structure Data MPANs The MPAN data for meters that are the responsibility of The Organisation and are billed through the central contract has been collected through The Organisation Energy Management System. The data has been ratified by The Energy Manager. A full list of the 2010 - 2011 MPAN data will be downloaded from The Organisation Energy Management System on April 1st 2011 and stored for reference in: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy Supply Data\MPANs The Energy Manager has operational management responsibility for this data. The bills that this data is based on are also stored in The Organisation Energy Management System and available for auditing purposes. A processing manual can be found at: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy Supply Data\MPANs The MPAN data for meters that are not billed through the central contract (schools/leisure centres, etc.) with The Organisation but whose meters The Organisation must report on for the purposes of CRC has been ratified by The Energy Management Team. The data and details regarding the data can be found in: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy Supply Data\MPANs MPRNs The MPRN data for meters that are the responsibility of The Organisation and are billed through the central contract has been collected through The Organisation Energy Management System. The data has been ratified by The Energy Manager. A full list of the 2010 - 2011 MPRN data will be downloaded from The Organisation Energy Management System on April 1st 2011 and stored for reference in: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy Supply Data\MPRNs The Energy Manager has operational management responsibility for this data. The bills that this data is based on are also stored in The Organisation Energy Management System and available for auditing purposes. A processing manual can be found at: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy Supply Data\MPRNs The MPRN data for meters that are not billed through the central contract (schools/leisure centres, etc.) with The Organisation but whose meters The Organisation must report on for the purposes of CRC has been ratified by The Energy Management Team. The data and details regarding the data can be found in:
Evidence Packs
Annual Report2010 - 2011
Footprint Report2010-2011 Key Personnel Information
Participation in Scheme
Organisational Structure
Core Energy Supply Data
Residual Energy Supply Date
Estimations
MPANs
MPRNs
AMRs
CTS or equivalent
Issues
Risks
Registration & Qualification
2008
Key Personnel Information
Participation in Scheme
Organisational Structure
Core Energy Supply Data
Estimations
MPANs
MPRNs
CTS or equivalent
Issues
Risks
Key Personnel Information
Participation in Scheme
Organisational Structure
Estimations
HHMs
Issues
Risks
Annual Report2011 - 2012
Included Residual Supply Data
Source List Tool
• Easy to use?• Any errors/mistakes?• Time consuming or time saving?• Important for analytical purposes?• Alternatives?
– Carbon Counter– SystemsLink/TEAM add on
Outstanding Work
• Good/Standard practice• “4 questions” evidence• Roles and responsibilities
– Primary/Secondary Contact Updates• Renewables/Electric cars• Half-hourly data for AMR• Profiles classes (especially 01 and 02)• Streetlighting – in or out and WHY
Next steps
• Analyse your data• Bring sites back into contract• (Re)write your Carbon Management Plan• Reduce your emissions• Increase your carbon saving projects
– FITs and RHI– Energy efficiency projects
• Internal or 3rd party audit• Prepare for external audit within this phase
Thank you
Any comments/questions?
CRC simplification:Consultation proposals
Karen Lawrence, Head of CRC and Consultancy, Local Energy
Where are we now?• DECC’s simplification discussion papers
published in January 2011• Stakeholder views, proposals and suggestions
sought• “Simplifying the CRC Energy Efficiency Scheme:
Next steps” published June 2011• Formal public consultation on draft legislative
proposals expected in early 2012
Decisions already made
• The CRC will be retained in a simplified form from phase 2 onwards (i.e. no changes before April 2013)
• Existing emissions coverage will be retained at a broadly similar level
• Retrospective sales of allowances to continue throughout introductory phase
Key proposals affecting public sector
• Qualification– Simplified rules based on electricity through settled
HHMs only (i.e. excluding AMR)– Reduced threshold designed to retain current
coverage only (not to expand the Scheme)
Key proposals affecting public sector
• Scheme coverage– Reduced number of fuels included in the Scheme
(electricity, gas, kerosene and diesel (where the latter two are used for heating purposes))
– Supply definition expanded to include passive unmetered supplies (i.e. street lighting)
– Smaller sources excluded (i.e. electricity meter profile classes 01 and 02 excluded)
– Treatment of Academies to be reviewed – options paper to be published ‘shortly’
Key proposals affecting public sector
• Reporting– 90% rule removed, requiring reporting of 100% of all
four fuels (electricity, gas, kerosene and diesel)– No footprint report or residual measurement list
required– Greenhouse gas reporting emissions factors to be
used (in place of fixed emissions factors per phase)
Key proposals affecting public sector
• Allowances and trading– No emissions cap– No auction of allowances– Two sales of fixed price allowances each year
• Lower price at beginning of year (forecast sale)• Higher price at end of year (retrospective sale)
Key proposals affecting public sector
• Record keeping– Review of evidence pack burdens after one
report/audit cycle (2011-12)– Data retention requirements reduced to 6 years in line
with other regulatory schemes (currently up to 12 years following compliance year)
You may comment on the content of the paper before the formal consultation package is drafted
Contact DECC [email protected] 2nd September 2011
Lunch
New partnerships and services
Andy Johnston, Chief Executive, Local Energy
What is Carbonscape?• Carbonscape is a service available to all organisations
that are required to comply with the CRC• By handling all of the data, administration and reporting
aspects of the CRC it allows you to concentrate on key business issues such as reducing your carbon emissions, lowering your energy bills and focusing on the raft of new policy initiatives
• By reducing your costs, it frees up budgets to invest in energy saving
• By ensuring compliance, it protects the reputation of your organisation
Carbonscape is flexible
Fully outsourced CRC serviceor
Bespoke package to help with any aspect of CRC compliance or management
Solar PV FITs:Rent-a-roof or DIY?
Peter Chasmer, Consultant, Local EnergyCraig Copeland, Lead Carbon Consultant, Carbon Descent
The Basics
• Solar PV – Photovoltaic electricity generation– Different from Solar Thermal– Must be MCS accredited for FIT eligibility
• FIT - Feed-in tariff– Government-backed measure– Fixed income for every kWh of electricity you
generate– Additional fixed income for exporting to the grid
Feed In tariffsAnaerobic digestion ≤500kW 12.1 20Anaerobic digestion >500kW 9.4 20Hydro ≤15 kW 20.9 20Hydro >2MW - 5MW 4.7 20Micro-CHP [B] <2 kW 10.5 10Solar PV ≤4 kW new [C] 37.8 25Solar PV ≤4 kW retrofit[C] 43.3 25Solar PV >4-10kW 37.8 25Solar PV >10 - 100kW 32.9 25Solar PV >100kW - 5MW 30.7 25Wind ≤1.5kW 36.2 20Wind >1.5MW - 5MW 4.7 20Existing generators transferred from RO 9.4 to 2027
What schemes would you be interested in?
Larger Smaller Council Buildings Housing Schools Fire stations and Libraries
0
2
4
6
8
10
12
14
Rent a roofDIYESCO
Insolation Factors
• Roughly 1,000 across UK• More in south west• Less in north
• If it’s 25pkWh, it’ll produce 25MWh per annum
Money
• Initial Outlay– £5,000-£6000 per house (large scale)?
• Energy production– 2pkWh per house. Flats? Schools?
• Yearly Return– £1000 (savings + FITs) per house?
• Maintenance/yearly cost– Solar panels– Inverters: £1500, 5-10 year life expectancy.
Do you have capital available to take advantage of FITs for solar PVs?
Yes No Partial Loan Invest to save0
1
2
3
4
5
6
7
LargerSmaller
Pros and ConsPolice Authority Funded Roof Lease 3rd Party Funded
Pros Cons Pros Cons Pros Con’sWe keep all the FIT
payments.Full capital outlay. No capital outlay. No FIT payments. No capital outlay. Financial agreement
with an external company.
Reduction in energy needed from grid.
Will have to pay for maintenance.
Reduction in energy needed from grid.
Won’t save us much money per year.
Reduction in energy needed from grid.
The company would own the panels until
paid off.
We can control the type of installation
and panel used.
Will have to arrange installation ourselves.
Possible one-off payment for use of
roof.
We won’t own the panels until 25 years’
time (lower performance, more
maintenance, no FIT).
We can control the type of installation and panels used.
Who gets the FITs?
No maintenance costs.
Can’t control types of panels used.
Still have to pay for maintenance?
Other company arranges installation.
Will have to arrange installation ourselves.
Upfront or annual payments
None - just free electric-
ity; 4
Per do-
mestic roof, 2
Part-FIT; 3
A "large" Roof, 1
Per m2, 2• Per meter squared: £15 - £35
• A “large roof”: £25,000
• Part-FIT: How much per kWh?
• Per house roof: £35 - £500
• Just free electricity came top: surprising?
Other issues and comments:• “Our legal team have advised that even if the PV is fitted for free, the value of the
contract is the amount of FIT the installing company could receive. Therefore full procurement rules must be applied.”
• “They require a 25 year agreement to be signed and no one in the council is willing”
• “…none of the companies who submitted would be capable of delivering on a large scale.”
• “…the ESCO model…has the most legal and procurement complexities and therefore would take the longest time to deliver.”
• “…procurement for the rent-a-roof schemes as when there is no capital investment and the electricity offered is free it doesn’t fall neatly into a procurement exercise and seems to confuse my procurement colleagues!”
• “…YPO are working on a procurement framework that will be ready for August. “• “…there has been some vandalism on a roof mounted solar thermal installation.”
Thank you
Any comments/questions…
Carbon Saving Public Sector:The year ahead
Karen Lawrence, Head of CRC and Consultancy, Local Energy
CSPS 2011-12: CRC support
• Two free delegate places at a series of events throughout the project
• Regular CRC updates by email • An online discussion forum• Opportunities to network with colleagues at events and
online • Advice, guidance and support throughout from Local
Energy staff• A mini-audit to identify potential errors and omissions
and to help you minimise your allowance liability
CSPS 2011-12: Carbon reductionIn addition, we will be:• Providing updates and guidance on energy
efficiency and renewable energy options to help you cut carbon emissions and reduce energy costs
• Helping you identify the best combination of technologies and incentives available, including FITs and the RHI
• Examining how they affect your CRC liabilities
CSPS 2011-12: Best practice
We also plan to build up a database of CRC documentation relevant to public sector organisations
This may include CRC policies and procedures; evidence pack templates; CRC audit reports; supplier
recommendations (i.e. CRC software, meter installers, energy suppliers, consultants)
Tell us what you need
Timetable• July 2011 – CSPS event 1: launch• October 2011 – CRC league table published• October/November 2011 – CSPS event 2: league
table results, emissions reduction and forecasting• March 2012 – end of 2nd CRC compliance year• April-July 2012 – first sale of CRC allowances• April/May 2012 – CSPS event 3: project review,
lessons learned, buying allowances• July 2012 – submit annual report and surrender
allowances
