Implementing and financing an energy efficient lighting project
20 November 2013
Myles McCarthyDirector, Implementation
Introduction
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
2
Myles McCarthyDirector, Implementation
Carbon Trust
Today’s presenter Today’s objectives
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
3
Agenda
Carbon Trust
Our mission is to accelerate the move to a sustainable, low carbon economy
We are independent experts on carbon reduction and resource efficiency, who reinvest surpluses
from group commercial activities into our mission
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ADVICE
Business strategyHelping businesses capture the opportunities in a sustainable low carbon world
Government supportProviding cutting-edge policy advice, insights and programme delivery on the transformation of markets
Public Sector AdviceEnabling the public sector to cut costs and emissions
FOOTPRINTING
MeasuringUnderstanding the environmental impact of an organisation, product or service
CertifyingProviding independent verification of organisational or product footprints to endorse sustainable leadership
TECHNOLOGY
Implementation and FinanceProviding expertise and support to businesses to put energy efficiency plans into action
Innovation Partnering with companies and governments seeking to create value from the clean technology revolution
We help our clients benefit from the opportunities of sustainable, green growth
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£35,000
on-site surveys
75%FTSE 100 companies
£1.6bnspend on energy efficient
equipment
50,000advice line calls per annum
70%Local Authorities
90%Higher Education Institutions
£50%
NHS Trusts
We have worked with:
to deliver:and undertaken:
£4.5bnenergy waste avoided
Our expertise is built on deep experience
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› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
7
Agenda
The opportunities are found across all sectors
Operational Efficiency and Behavioural ChangeLow/no cost savings through measuring and monitoring energy use, staff engagement and appropriate improvements to the use and maintenance of existing equipment
Building Energy EfficiencyInvestment in new building technologies including:• Controls • Air conditioning• Lighting • Ventilation• Heating
Industrial/Process Energy EfficiencyInvestment in new industrial technologies and processes including:• Motors & drives • Refrigeration• Compressed air • Process heating• Process controls
Renewable EnergyInvestment in equipment to generate local renewable heat or electricity:• Biomass • Solar (thermal/PV)• Heat pumps • CHP• Wind • Waste to energy
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The top left box is often the area customers will want to focus on first and gain some early wins
Renewable energy(inc. subsidies)
'Typical' business investments
Energy efficiency
0 10 20 30 40 50 60
Internal rate of return (%)
Indicative potential investment returns
40-50%
10-15%
5-10%
Source: Carbon Trust analysis
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The case for investing in energy efficiency is compelling
Lighting, training and MM&T are the commonest ways to improve energy efficiency
Lighting and co
ntrols
Employee awareness tra
ining
Metering, m
onitorin
g and targeting
Boilers
and boiler c
ontrols
Ventilation and air conditioning
Renewable energy
Building M
anagement Syste
ms
Motors & driv
es
Compressed air
Industrial p
roce
sses
OtherNone
0%10%20%30%40%50%60%70%80%90%
Which of the following technologies have you invested in to improve the energy efficiency of your business in the last year?
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› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
11
Agenda
Lack of funds
Lack of awareness
Lack of confidence
Technical advice
Energy efficiency finance
Common barriers Our unique service
Accredited supplier schemeEnergy
efficiency made easy
www.carbontrust.com/greenbusinessdirectory
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There are three key barriers to implementation, …which we help organisations to overcome
Technical advice
Site Surveys Business Case Procurement
Impartial, authoritative, impactful advice
Identifying the opportunityData analysis; Investment-
grade surveys; Benchmarking; Staff training
Robust, evidence-based proposals
Making the investment caseFinancing options; Tax-
efficient solutions; Whole-life cost; Market intelligence
Expert, best-value procurement service
ImplementationSupplier sourcing;
Performance specification; Tender analysis & evaluation
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We provide bespoke technical support throughout the implementation process
Technical case studies and
client references
Workforce knowledge, skills and
experience
Adherence to quality,
environmental and safety standards Training,
contracting and customer
processes
Professional memberships
Our accredited supplier base ensures best-in-class solutions
Accredited supplier scheme
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“Being accredited by the Carbon Trust really underlines our credibility. When clients see the Accredited Supplier logo, it immediately puts them at ease.”
- John Robb, Director, Cooper Lighting and Safety
Accredited supplier scheme
› Searchable directory of Carbon Trust accredited suppliers
› Hosted on the Carbon Trust website, which receives over 400,000 unique visitors each year
› Aiming to become the ‘go to’ directory for organisations searching for high quality suppliers with a proven track record
› Wide range of energy efficient equipment and renewables technologies covered
› Email [email protected] or call 020 7170 7000
www.carbontrust.com/greenbusinessdirectory
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Our accredited suppliers are listed on the Green Business Directory
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
16
Agenda
1 2 3 4 5 6 70
10
20
30
40
50
60
Year
Annual savin
g (
£k)
During financing After financing
Illustrative savings profile
Energy Efficiency Finance
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Flexible financing can make projects cash flow positive from day one› £550m partnership between the Carbon Trust and Siemens Financial Services
› Financing structured so that savings exceed repayments
› Available for energy efficiency and renewables projects from as little as £1,000, with no upper limit
› Independent assessment of energy saving potential conducted by the Carbon Trust
How EEF can supports lighting suppliers
Supports growth in sales
Funding available for all types of businesses
Credibility of a Carbon Trust Assessment
Reduce risk of losing deals to competitors
Widens scope and scale of projects
Increased customer satisfaction
Convenient and Fast
Affordable payments and flexible terms
Easier budgeting
Leaves existing lines of credit intact
Environmental benefits
Tax efficient
How EEF can supports lighting customers
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
19
Agenda
Case Study #1: Small retail shop
Existing Lighting System
Mixture of 79 luminaires at London high-street shopTungsten halogen spotlights and some fluorescent lighting to be replacedExisting equipment is typically inefficient with shorter lamp life
Proposed Lighting System
LED replacements of suitable types to replace all existing fittingsHigher efficiency with improved efficacy: up to 90lm/W for LED*Longer life: up to 60,000Hrs to L70 for LED**
Existing Luminaire Replacement Lamp
50W MR16 Halogen Down light 9W GU10 Down light
35W MR16 Halogen Down light 9W GU10 Down light
50W GU10 Halogen Down light 9W GU10 Down light
45W Specialist watch cabinet lighting LED Strip-light
36W 4ft Fluorescent 20W 4ft LED tubes
50W E27 ‘Golf Ball’ Lamps 10W LED E27 ‘Golf Ball’ lamps
40W BC lamps 10W LED BC Lamps
Notes
*lm/W (lumens per watt) is a measure of the amount of light produced in lumens for each watt of electrical energy.** L70 is a term which denotes lamp life to a stage where only 70% of the original light output is produced. As LEDs degrade rather than fail this has become a standardised measure to define lamp life.
Small retail shop: Summary of energy cost saving assessment
Our assessment indicates that the proposed project should result in monthly energy and maintenance cost savings of £132.00
Monthly Energy & Maintenance Saving
Monthly Finance Payment
£0
£20
£40
£60
£80
£100
£120
£140£132.00 £123.76
Based on a financing term of 38 months
Small retail shop: Projected Year 1-7 cumulative savings
Case Study #2: Transport & Storage Company
Existing Lighting System
325 existing 400W High Bay Metal Halide luminaires across eight warehouse sitesIncluding ballast losses each fitting consumes 450WLighting operates 24hrs per day 7 days per week 51 weeks of the yearExisting equipment is typically inefficient with shorter lamp life of 20,000 hours
Proposed Lighting System
165W & 250W Induction Luminaires
Higher efficacy: up to 85 lm/W*
Long lamp life: up to 80,000Hrs
Reduced re-lamping costs will be
achieved due to long lamp life of
induction fittings
Existing Inefficient Luminaires High Efficiency Luminaires
400W Metal Halide High Bay Lighting High Bay Induction Lighting
Common throughout all eight warehouses. Warehouse 1,3 & 5 250WWarehouse 2,4,6,7 & 8 165W
Notes
*lm/W (lumens per watt) is a measure of the amount of light produced in lumens for each watt of electrical energy.
Transport & Storage Company: Summary of energy cost saving assessment
Our assessment indicates that the proposed project should result in monthly energy and maintenance cost savings of £5,303.00
Monthly Energy Sav-ing
Monthly Finance Payment
£0
£1,000
£2,000
£3,000
£4,000
£5,000
£6,000£5,303.00
£1,844.07
Based on a financing term of 60 months
Transport & Storage Company: Projected Year 1-7 cumulative savings
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› Collaborative procurement model to help Tesco’s suppliers invest in energy efficient lighting solutions
› Part of Tesco’s drive to reduce the carbon footprint of the products it sells by 30% by 2020
› Single solution provider procured by the Carbon Trust› Competitive process, limited to Carbon Trust Accredited Suppliers› Selection based on quality, whole-life cost and capital cost
› Collective purchasing power used to negotiate discounted rate card
› Successful pilot concluded in September; full roll out now underway
“Our suppliers have told us that cost and lack of knowledge can be the biggest barriers to making investment in energy savings. The Buying Club will address these concerns and support them in reducing their carbon footprint in a really practical way.”
- Chloe Meacher, Tesco Climate Change Manager
Tesco Buying ClubA collaborative approach to implementation
Get in touch:
Myles McCarthy, Director of Implementation, Carbon Trust› [email protected]› 07876 390 045
Ian Hunt, National BDM, Energy Efficiency Finance, Siemens› [email protected]› 07921 245 467
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