Renewable Energy Technologies. Which is the best solution? David Gilbey – Renewable Consultant 8 th April

Corporate and Government Energy Procurement The Utilities Exchange Ltd Government Targets Reduce GHG emissions by 80% by 2050 from 1990 baseline levels Reduce GHG emissions by 20% by 2020 –How are we doing against that target? –Central Government have a target to reduce GHG emissions by 25% in 2014/15 from 2009/10 levels 20% renewable contribution by 2020 –Scotland contribute one third of UK Renewable input in 2012 To implement financial and reputational drivers to develop energy management strategies and promote a better understanding of energy usage

Corporate and Government Energy Procurement The Utilities Exchange Ltd Organisation Pressure Estimated annual public sector energy spend is £2.54 billion, increasing each year. CO2 of 16.7 million tonnes per annum. Increasing pressure to reduce these costs: Increased energy costs Increased energy taxes CRC – cost of allowances Sustainable image

Corporate and Government Energy Procurement The Utilities Exchange Ltd 17 September 2015, E.ON, Page 4 UX Energy Services offer an integrated service… Solar PV Solar Thermal LED Lighting BiomassGSHP Wind District Heating CHP Mini CHP Key Low Carbon Solutions

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Energy Technologies Ground Source Heatpumps (GSHP) Air Source Heatpumps (ASHP)

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Energy Technologies Wind Turbines Solar Thermal Solar PV Biomass Solutions – Wood Pellet or chip

Corporate and Government Energy Procurement The Utilities Exchange Ltd Incentives Feed In Tariffs – FiT’s up to 5MW - index linked Renewable Heat Incentive – RHI – index linked Reduction in Carbon Costs Less exposure to fluctuating commodity markets Lower Energy Costs Corporate Social Responsibility

Corporate and Government Energy Procurement The Utilities Exchange Ltd Solar Feed in Tariff Update April FiT deadline triggers 77MW solar rush in March EU-China minimum price to fall to €0.53 per Watt Current FiT rates for solar PV:- DescriptionFiT rate p/kWh 0-4kW14.38 >4-10kW13.03 >10-50kW12.13 >50-100kW10.71

Corporate and Government Energy Procurement The Utilities Exchange Ltd Solar Feed in Tariff Update

Corporate and Government Energy Procurement The Utilities Exchange Ltd What is the Renewable Heat Incentive? The Renewable Heat Incentive (RHI) is a Government Scheme that provides financial support to heat generators and producers of bio methane. Provides a continuous income stream for up to 20 years. To ensure renewable heating systems are attractive when compared with fossil fuel alternatives. Accelerate deployment of renewable heat technology. Government target of 12% of heating to come from renewable sources by Estimated 44 million tonnes of carbon saved (MtCO2) by 2020

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Heat Incentive By 2020, RHI support levels are expected to bring forward: > 14,000 installations in industry > 112,000 in the commercial and public sector >2 nd phase introduced to support domestic sector in 2014 > Expected to generate around 57Twhr’s of renewable heat

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Heat Incentive Tariff NameEligible TechnologyEligible SizesTierCurrent applicable tariffs RPI adjusted tariff for 1 April 2014 (2.7%) Small commercial biomass Solid biomass including solid biomass contained in municipal solid waste and CHP Less than 200 kWth Tier Tier Medium commercial Biomass 200 kWth and above; less than 1MWth Tier Tier Medium commercial Biomass (w/e from 1 July 2013) Tier Tier Large commercial Biomass1MWth and aboveN/A11 Small commercial heat pumps Ground-source heat pumps; Water Source heat pumps; deep geothermal Less than 100 kWthN/A Large commercial heat pumps100 kWth and aboveN/A All solar collectorsSolar collectorsLess than 200 kWthN/A Biomethane and biogas combustion Biomethane injection and biogas combustion, Biomethane all scales, biogas combustion less than 200 kWth

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Heat Incentive Update

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Heat Incentive Update

Corporate and Government Energy Procurement The Utilities Exchange Ltd Energy Cost Drives Demand Reduction With many organisations already advanced in implementing energy saving technologies prior to considering investment in renewable energy technologies, UX are now assisting companies to determine if on-site renewable technologies are the right investment. Of the technologies available, UX also assist clients to determine which is the most appropriate or combination of technologies for an organisation to achieve its cost and CSR objectives, quantifying payback through a demonstrable record of ROI and within a defined period.

Corporate and Government Energy Procurement The Utilities Exchange Ltd UX Renewable Energy Services offer: Independent Advice Sustainable Feasibility Studies Pre-Design Project Consultation Recommendations with Forecast ROI Project Management for Planning and Implementation Technology specific expert advisory consultants Solution design, tendering, installation and maintenance support Access to funding and Energy Service Company (ESCo)

Case History Oil Vs. Biomass

600kW Oil fired Boiler 36 years old 150,000 litres oil/annum Oil at 6.5p/pkWhr delivered Approx. 1.6GWhrs Assume 80% eff. – likely to be less Delivering 1.28GWhr’s heat maximum 530 Tonnes CO2 Oil storage issues Environmental problems Ageing plant – spares?? Reducing Oil and Carbon Emissions

Corporate and Government Energy Procurement The Utilities Exchange Ltd Reducing Oil and Carbon Emissions cing Oil and Carbon Emissions 500kW Biomass fired Boiler Typically 90% eff. 285 tonnes wood pellet/annum 3.1p/kWhr wood pellets delivered >10% MC Approx. 1.4Gwhrs fuel input Delivering 1.28GWhr’s heat Reduction in 530 Tonnes CO2

Corporate and Government Energy Procurement The Utilities Exchange Ltd Reducing Oil and Carbon Reducing Oil and Carbon Emissions Emissions RHI Income - £45,933/annum Income for 20 years RPI’d Current oil = £103,680/annum Biomass Fuel = £53,760/annum Fuel saving = £49,920 Annual Gain = £95,853 Carbon reduction of 530 tonnes/annum “Zero rated” under CRC Fully automatic 1,500Kg ash for fertiliser Remote monitoring of fuel levels Greater fuel security Pre packaged kit available

Corporate and Government Energy Procurement The Utilities Exchange Ltd Example 2012 client spend circa £98k on oil Fuel savings approx. £50k/annum RHI Income £45k/annum – indexed linked to RPI RHI estimated £1.3M over 20 year period Oil estimated to be around £4.2M over 20 year period Biomass estimated £1.5M over 20 year period Saving over 20 years approx £3.8M D C F approx £2.5M 10,600 tonnes carbon > £170K CRC of savings

Corporate and Government Energy Procurement The Utilities Exchange Ltd Options Pre packaged options available

Corporate and Government Energy Procurement The Utilities Exchange Ltd Renewable Energy - The Benefits In summary, Financial incentive through indexed FiT and RHI income for 20 years Short payback periods Pre packaged options available Established providers and supply chain Cutting edge technology Reduced exposure to fuel price fluctuation. Significant carbon reductions – CRC benefits and efficiencies. Improves flexibility Improved security of supply

Corporate and Government Energy Procurement The Utilities Exchange Ltd Any Questions? Thank you

Corporate and Government Energy Procurement The Utilities Exchange Ltd The Utilities Exchange Ltd - established 1995 Energy industry staff TWh’s purchased annually UK Extensive experience in carbon management Investment in automated systems - more than £6 million Independent Specialist consultancy support Metering and water services Innovative solutions UX Energy Services Manufacturing Property Chemicals Pharmaceuticals Retail and Leisure Financial Services Logistics Public Sector