Building energy consumption - making investment now could save money in the long run.

1. Barry Shambrook Founder, Building Energy Reduction initiatives The investment case for reduction in building energy consumption

2. Do we need to do it? Non carbon reason 1

3. Do we need to do it? Non carbon reason 2

4. Do we need to do it? Non carbon reason 3

5. Incentive types Feel good factor/Corporate Social Responsibility Laws, enforceable regulations Red tape, regulations requiring paper Financial penalties / rewards

6. Incentives - Hole in the ground stage Planning requirements Part L building regulations Lifetime cost? BREEAM?

7. Incentives – Sale or lease stage Energy Performance Certificate Energy cost?

8. Incentives – Private sector “mature” buildings Plant inspection reports CRC Carbon Trading EN14001 ECA tax allowances Feed in tariffs Clause A.4.6 of ISO 14001 states: “ An organization should evaluate those of its operations that are associated with its identified significant environmental aspects and ensure that they are conducted in a way that will control or reduce the adverse impacts associated with them, in order to fulfill the requirements of its environmental policy and meet its objectives and targets”. Potential effect of higher energy prices + CRC Carbon trust loans

9. ECA – Enhanced capital allowance

10. Incentives – Public sector “mature” buildings Plant inspection reports Display Energy Certificates CRC Carbon Trading EN14001 Salix loans Feed in tariffs

11. Feed in tariff Energy Source Scale Generation Tariff (p/kWh) [A] Duration (years) Anaerobic digestion ≤ 500kW 11.5 20 Anaerobic digestion >500kW 9.0 20 Hydro ≤ 15 kW 19.9 20 Hydro >15 - 100kW 17.8 20 Hydro >100kW - 2MW 11.0 20 Hydro >2kW - 5MW 4.5 20 Micro-CHP [B] <2 kW 10.0 10 Solar PV ≤ 4 kW new [C] 36.1 25 Solar PV ≤ 4 kW retrofit [C] 41.3 25 Solar PV >4-10kW 36.1 25 Solar PV >10 - 100kW 31.4 25 Solar PV >100kW - 5MW 29.3 25 Solar PV Standalone [C] 29.3 25 Wind ≤ 1.5kW 34.5 20 Wind >1.5 - 15kW 26.7 20 Wind >15 - 100kW 24.1 20 Wind >100 - 500kW 18.8 20 Wind >500kW - 1.5MW 9.4 20 Wind >1.5MW - 5MW 4.5 20 Existing generators transferred from RO 9.0 to 2027

12. Benchmark comparison – Central London office

13. Benchmark comparison – various restaurants

14. Energy saving initiatives Implementation Investment Repayment of investment Qualifies for Enhanced Capital Allowance Grant or 0% loan availability Occupant education 1-2 weeks Very low 1-6 months No No Operator training 1-2 weeks Very low 1-6 months No No Adjustments to HVAC control setpoints, timings and sequences 1-2 weeks Low 1-6 months No No Sub-metering 2-4 weeks Low Indirect, assists diagnosis Yes No Speed control to pumps and fans 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Enhanced HVAC controls 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Power source conditioning 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Lighting upgrade/ replacement 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Automatic lighting controls 1-2 months Medium 6 months- 2 years Yes Yes, subject to status Heating/ cooling plant replacements 2-6 months High 2-5 years Yes Yes, subject to status Building insulation improvements 2-6 months High 2-5 years Yes Yes, subject to status Renewable energy sources 2-6 months Very high 5-15 years Yes Sometimes

15. Traditional “input” procurement – specify, tender Advantages Disadvantages Proven and understood Time for implementation Standard contracts available No guarantee of energy savings Competitive Best quality? Use of loans and other incentives Best value?

16. Shared or surrendered energy savings Advantages Disadvantages Guaranteed energy savings Lack of control No investment cost Cost of finance Cannot be used with loans and other incentives

17. Suggested alternative risk sharing Deposit, 10%? Main payment

18. Actual example energy reduction initiatives London office building Building energy reduction initiatives Item Investment Qualifies for Enhanced Capital Allowance? Qualifies for Carbon Trust interest free loan? Annual saving Simple ROI /annum Proving period Energy Savings/ Annum in kWhr CO2 Savings /Annum In Tonnes Energy Cost Savings/Annum (£) BMS Adjustments, time schedules and set points £3,000 No No 18,278 9.82 £1,828 60% 1 week Modify chiller and pump controls to eliminate bypass flow through standby chiller £4,400 Yes Probably yes 14,287 7.67 £1,429 32% 2 weeks Install motorized floor isolation dampers along with fan speed control for the office fresh air supply and extract system. £27,000 Yes Probably yes 49,476 26.57 £4,948 18% 4 weeks

19. More ideas www.berinitiatives.co.uk