1. The Local Energy Challenge –
solutions for business
Richard Scott
Head of Consultancy Richard – E.ON Sustainable EnergyConsulting
Services Scott: Head of Carbon
© 2007 E.ON

2. European Strategic Energy Policy Context & Drivers
UK Energy
EU 20–20–20 Targets Policy Impact
Political Motivations EU Energy
Legislation to drive delivery
1.Make the best use of Security &
EU’s indigenous Solidarity
of 20-20-20 targets
energy resources Plan
through renewables
2.Reduce GHG EU Energy
emissions Efficiency
3.Increase energy
Package
efficiency
4.Ensure affordable 1. 15% Renewables
energy Renewable 2. 20% reduction in
Energy energy consumption
Directive 3. 20% reduction in GHG
emissions (from 1990 levels)
© 2007 E.ON 27 June 2011, E.ON, Page 2

3. “Why
would an energy company
want me to use less energy?”
© 2007 E.ON

4. The Energy Trilemma
We’re building the low carbon
communities of tomorrow, today.
That means reducing carbon
emissions and doing so while
keeping energy costs down and
the lights switched on.
The Energy Trilemma lies at the
heart of the local energy
challenge too!
© 2007 E.ON

5. Malmö Western Harbour
1990s
© 2007 E.ON
Photo: Malmö Municipality

6. The Western Harbour,
2009
© 2007 E.ON

7. Regenerating Malmo, Sweden.
1990
2009
• E.ON District Heating Plant 1, 7 & 9
• E.ON Cogeneration plant 8
• Connected via a 23km E.ON heat-network
We provide the city with a 99.7% availability
guarantee of 100% renewable energy
© 2007 E.ON

8. Decentralised energy across Malmö gives them fuel flexibility - but
it’s facilitated through a highly efficient built-environment
Human behaviour
Insulation
Building Energy Management
Boiler Optimisation
Voltage Optimisation
Wind-power
Heat-pumps
Solar PV
Solar Thermal
Organic waste fermentation
The right solution is different for every
building - different for every business
© 2007 E.ON

9. How do you decide where to start?
Marginal Abatement Cost Curves
40.0
20.0
Project 5
0.0
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320
-20.0
Project 4
Project 2
MAC
Project 3
Project 1
(£/tCO2)
-40.0
-60.0
-80.0
-100.0
Annual CO2 saving (tCO2/ p.a.)
© 2007 E.ON

10. Smart-buildings to live displays, carbon accounting software or
validation of technology choices are good places to start
Air
Indoor Handling Exhaust Cooling Elevators
Air Halon
Air Quality Unit Smoke Towers Lighting
Filters Fans Zone System
Cameras Services Controllers Detectors Diffusers
Heating VAV
Cooling Solar Control
Fans Units Units
Coils PV Panels Cameras
Dampers
Intrusion
Detectors
Card
Readers
Access
Management Thermostats/ Vending Machines
Pumps
Controllers Humidistats
Operators
Chillers & Parking Water Systems
Chemical Station
Boilers Rack/Server IDF PDU Garage
Water Computer Room Fire Alarm
Control Air Handlers Panels
© 2007 E.ON

11. Shift in DEC distribution from 2009-2050 required for an 80%
reduction in CO2 emissions
Source: Department for Communities and Local Government Data for public sector buildings (August 2009): Carbon Trust analysis
© 2007 E.ON

12. Dalston Lane, London Winner of CHPA
Community and
Residential award 2009
Size of development: 550 residential
units + Library + small retail units
Energy Centre Plant: 185kWe CHP,
250kW Biomass boiler, 3 x 1.45MW
Gas Boilers
CO2 Savings: c.785 tonnes CO₂ per
year [code 3]
Energy from Renewables: 10%
© 2007 E.ON

13. • The market for Energy Saving
Contracts is immature in the UK
• We delivered one of the very
first at Newham NHS Hospital
• Our experience focused us on
a ‘building specific’ solution to
meet the Trust’s needs
• The Energy Saving Contract
model brings capital to energy
efficiency projects.
© 2007 E.ON 27 June 2011, E.ON, Page 13

14. • We’re all now aware that the real
challenge is retro-fit buildings
• Using thermal cameras, on-site
building fabric analysis and detailed
energy use data, we answered a crucial
question for these flats in Stoke
• What combination of technologies
would yield greater value of energy
savings than the cost to install them?
• In this way you make clear the
investment rationale for energy
efficiency and carbon reductions
© 2007 E.ON

15. We’re working on the UK’s largest carbon and energy efficiency project
in the Greenwich – 10,000 homes, 2.5M Sq. Ft. of Commercial space
© 2007 E.ON

16. Innovative funding models for delivering decentralised energy
An ESCo can be a route to
solving funding issues,
ensuring continuity of
supply and building a long-
term genuine partnerships
© 2007 E.ON

17. Why would you want an ESCo on board?
A good ESCo can de-risk your
project, with capital infusion
and specialist skills, delivery
and operational experience
Seek out an ESCo that can
support you across the value
chain, from initial advice to
‘whole life’ services
© 2007 E.ON

18. Technology agnostic – client specific
Variety of generation technologies match
© 2007 E.ON solutions to specific applications
18

19. CHALLENGERS LEADERS
We’ve been E.ON
rated as
British Gas
‘leading’ in this
space by the EDF
respected and NPower
Capability
independent
Verdantix green- GDF Suez
Good Energy
quadrant report.
Ecotricity
Scottish & Southern Energy
Scottish Power
Smartest Power
Gazprom
Total
Haven Power
ENTREPRENURS SPECIALISTS
© 2007 E.ON Momentum

20. If the green jobs of the low carbon economy are to take
flight – we need a genuine partnership between business
and the communities they serve
© 2007 E.ON