Supported by Capital Ambition, the London Energy Project enables the public sector to achieve efficiencies through smarter energy buying, improved process.

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Presentation transcript:

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 Efficiency T: E:

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. Who we work with

Smarter buying. Less carbon. A better deal. New Statutory Duties for Schools The CRC Energy Efficiency 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 Request Annual Statements from all energy suppliers covering 1 April 2010 to 31 March 2011 – BEFORE 28 February Provide evidence pack to your Local Authority – BEFORE 30 June 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 -  ECO-schools –  Sustainable Schools –

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

Smarter buying. Less carbon. A better deal. 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/CO 2 saved equates to c£200 reduction in energy bills  Each t/CO 2 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

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. Recycling uncertainty

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. Auction strategy

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 SiteXXX Park Address XXX Park PostcodeN17 XXX LocationMeter in boiler room in basement GPS location53:19:17N /2:13:27W Meter Serial NoS88E MPAN Easting Northing LadderRequired KeysFB1 Opening HoursMon-Fri 9am-3pm Contact Details Fuel IDElect Meter photo IdPA998877

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  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 The Next Footprint report is required by 31st July  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 Reporting OnlyN/A Footprint & annual report % (capped phase Footprint) & annual report % 4 (capped phase) annual report % Year 1 (Oct 2011)Year 2 (Oct 2012)Year 3 (Oct 2013) Early Action Metric100%40%20% Absolute Metric0 %45%60% Growth Metric0%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

Smarter buying. Less carbon. A better deal. Value of Data  How much did this energy waste cost?  £1,  What did LFB resolve the problem?  Fitted a timer inline with the photo cell to turn the lights off when not required.  How much did that cost?  £  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)SavingMove% Week Total36,02042,5146,496 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 the operating 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 £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