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Carbon Saving Public Sector 2011-12

July 2011

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 Councils 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) doesnt 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/exemptions But dont 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

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Some common pitfalls

Internal communication
Issues Difficulty identifying residual and out-ofcontract 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

Schools
Issues 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 allowances


Issues 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

Dont give me advice or ideas CRC Im 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 Guidance


Evidence Packs
Registration & Qualification 2008
Key Personnel Information Participation in Scheme Organisational Structure HHMs Estimations Issues Risks

Footprint Report 2010-2011

Key Personnel Information Participation in Scheme Organisational Structure


MPANs

Core Energy Supply Data


MPRNs

Residual Energy Supply Date Estimations AMRs CTS or equivalent Issues Risks

Annual Report 2010 - 2011

Key Personnel Information Participation in Scheme Organisational Structure


MPANs

Core Energy Supply Data


MPRNs

Included Residual Supply Data Estimations CTS or equivalent Issues Risks

Annual Report 2011 - 2012

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MPAN

The A data for meters that are the responsi ility of The Organisation and are illed through the central contract has een collected through The Organisation Energy Management ystem. The data has een ratified y The Energy Manager. A full list of the A data ill e downloaded from The Organisation Energy Management st ystem on April and stored for reference in: :\ nergy anagement\ \ idence acks\ ootprint eport \ nergy upply Data\ A s The Energy Manager has operational management responsi ility for this data. The ills that this data is ased on are also stored in The Organisation Energy Management ystem and available for auditing purposes. A processing manual can be found at: :\ nergy anagement\ \ vidence acks\ ootprint eport \ nergy upply Data\ A s

A data for meters that are not billed through the central contract (schools/leisure The centres, etc.) with The Organisation but whose meters The Organisation must report on for the purposes of has been ratified by The Energy Management Team. The data and details regarding the data can be found in: :\ nergy anagement\ \ vidence acks\ ootprint eport \ nergy upply Data\ A s

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The 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 ystem. The data has been ratified by The Energy Manager. A full list of the data will be downloaded from The Organisation Energy Management ystem on April st and stored for reference in: :\ nergy anagement\ \ vidence acks\ ootprint eport \ nergy upply Data\ s 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 ystem and available for auditing purposes. A processing manual can be found at: :\ nergy anagement\ \ vidence acks\ ootprint eport \ nergy upply Data\ s The 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 has been ratified by The Energy Management Team. The data and details regarding the data can be found in:

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?


DECCs 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 crc@decc.gsi.gov.uk by 2nd September 2011

Karen Lawrence Head of CRC and Consultancy Services karen.lawrence@lgiu.org.uk

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 service or Bespoke package to help with any aspect of CRC compliance or management

Solar V ITs: Rent-a-roof or IY?


Peter Chasmer, Consultant, Local Energy Craig 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 tariffs
Anaerobic digestion Anaerobic digestion Hydro Hydro Micro-CHP [B] Solar PV Solar PV Solar PV Solar PV Solar PV Wind Wind 500kW >500kW 15 kW >2MW - 5MW <2 kW 4 kW new [C] 4 kW retrofit[C] >4-10kW >10 - 100kW >100kW - 5MW 1.5kW >1.5MW - 5MW 12.1 9.4 20.9 4.7 10.5 37.8 43.3 37.8 32.9 30.7 36.2 4.7 9.4 20 20 20 20 10 25 25 25 25 25 20 20 to 2027

Existing generators transferred from RO

What schemes would you be interested in?


14

12

10

8 Rent a roof 6 DIY ESCO 4

0 Larger Smaller Council Buildings Housing Schools Fire stations and Libraries

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?
7 6 5

4 Larger 3 Smaller

0 Yes No Partial Loan Invest to save

Pros and Cons


Police Authority Funded
Pros
We keep all the FIT payments.

Roof Lease
Pros
No capital outlay.

3rd Party Funded


Pros
No capital outlay.

Cons
Full capital outlay.

Cons
No FIT payments.

Con s
Financial agreement with an external company. The company would own the panels until paid off. Who gets the FITs?

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.

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.

No maintenance costs. Other company arranges installation.

Can t control types of panels used.

Still have to pay for maintenance? Will have to arrange installation ourselves.

Upfront or annual payments


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?

Per m2, 2 A "large" Roof, 1

None - just free electricity, 4

Part-FIT, 3

Per domestic roof, 2

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 ublic 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 reduction


In 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 ctober/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/ ay 2012 CSPS event 3: project review, lessons learned, buying allowances July 2012 submit annual report and surrender allowances

Karen Lawrence Head of CRC and Consultancy Services karen.lawrence@lgiu.org.uk