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Best Practice Energy, Cost &
Carbon Reduction
Stephen Barker
Head Of Energy Efficiency & Environmental Care
Siemens plc, Industry Sector UK
Stephen.barker@siemens.com




                                          Copyright ©Siemens AG 2011. All rights reserved.
Agenda

 Introduction


 Policy landscape


“ Best Practice” approach


 Financing energy efficiency solutions


 Example


 Summary

                                         Siemens plc, 2011
Proposition: Siemens Energy Solutions


  Save 10 – 30% of the facility energy
  and utility spend – with attendant
  carbon reduction benefits.


  Without capital investment


   Simultaneously provide a positive
  cashflow contribution”.




                                         Siemens plc, 2011
Our Credentials:

 No1 In The Dow Jones Sustainability Index


 No1 in the Carbon Disclosure Project
Leadership Index


 Carbon Trust Standard


 CAESER


 Environmental portfolio - €28 billion in 09/10


 Saved our clients around 270M Tonnes
CO2e through 2010

                                                  Siemens plc, 2011
Introduction:
The Policy Landscape Drives Concrete Measures

  Global, EU & UK Policy           EU Regulation & Standards        UK Specific Measures

   Kyoto Proocol and targets on     Eco Design directive (“EuP” &   Climate change levy (CCL)
                                    “ERP”)
   greenhouse gas reduction
                                    Energy performance of           Climate change agreements
   IPCC reports                     buildings directive             (CCAs)

   Stern report on the financial    Landfill directive              Renewable obligations,
   implications of climate          Waste Incineration directive    ROCs and FITs
                                    (WID)
   change
                                    Measuring instruments           Renewable heat incentive
   UK government targets –          directive (MID)                 (RHI)
   80% CO2e reduction by 2050       Environmental permitting        Building regulations – “Part
                                    programme.
   UK energy policy                                                 L2”
                                    European emissions trading
   Climate Change Act               scheme (EU ETS)                 Carbon reduction
                                    International standards:-.      commitment (CRC EES)
   Low carbon strategy:
                                            EN 16001                 Enhanced capital
           Transport
                                            EN 15232                allowances (ECAs)
           Manufacturing                    Pr EN 15900             Landfill tax
Selected examples only
                                                                                   Siemens plc, 2011
Best Practice Energy, Cost & Carbon Reduction


 Systematic strategy :
 • Measure and monitor
 • Automation and Control
 • High efficiency products and solutions
 • Low carbon and renewables
 • Innovative finance solutions




                                                Siemens plc, 2011
A “Best Practice” Approach To Energy Efficiency

Tools and processes exist
to facilitate this systematic
                                 Consultancy led      • A systematic approach
                                 approach
continuous improvement                                 delivers maximum cost and
programme
                                                       carbon reduction.

                                                      • This process forms the basis
                                                       of a long term continuous
                                                       improvement programme.

                                                      • Simplifies environmental
                                                       compliance issues

                                                      • Aligned with requirements of
                                                       the international energy
                                                       management standard BS
                                                       ISO 50001 / BS EN 16001

                                                      • 400% savings compared to
Logical structure and
                                Ongoing consultancy    an ‘ad hoc’ approach
                                support to oversee
project sequence                implementation



                                                                         Siemens plc, 2011
Financing Energy Efficiency & Carbon Reduction Projects

•   Grants? (LEPs, Regional organisations?...)

•   Carbon trust loans (New – April 11)

•   Salix – public sector loans?

•   Green deal / GIB?

•   Private sector finance

•   Enhanced capital allowances (ECAs)


•   SFS


                                                      Siemens plc, 2011
Examples Propositions -
Illustrative Food & Beverage Facility (Dairy)


  Energy costs reduced by £1.0M (36%) per year

  Carbon emissions reduced by 4, 500 tonnes (35%)

  Projects cost £1.9M with payback in 23 months

  Financing:

               Monthly financing costs = £60k

               Reduction in utility costs = £83k

               Net cashflow contribution = £23k / month

               After 3 years, client enjoys full benefits

  Compliance with energy and environmental
  regulations


                                                            Siemens plc, 2011
Summary Of Proposition

  Starting point is expert energy audit – typically 5 to 10
  days per facility:

        Systematic evaluation of historical consumption data
        and can include energy balance / water balance etc

        Review of regulatory issues

        Evaluation of key opportunities and recommendations

        Preparation for continuous improvement programme

        Recorded in the Siemens Energy Navigator


  Proposition for implementation phase & solution
  delivery


   Options for zero capital investment with positive
  cashflow contribution

                                                               Siemens plc, 2011
Best Practice Energy, Cost &
Carbon Reduction
Stephen Barker
Head Of Energy Efficiency & Environmental
Care
Siemens plc, Industry Sector UK
Stephen.barker@siemens.com




                                      Copyright ©Siemens AG 2010. All rights reserved.

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Siemens

  • 1. Best Practice Energy, Cost & Carbon Reduction Stephen Barker Head Of Energy Efficiency & Environmental Care Siemens plc, Industry Sector UK Stephen.barker@siemens.com Copyright ©Siemens AG 2011. All rights reserved.
  • 2. Agenda Introduction Policy landscape “ Best Practice” approach Financing energy efficiency solutions Example Summary Siemens plc, 2011
  • 3. Proposition: Siemens Energy Solutions Save 10 – 30% of the facility energy and utility spend – with attendant carbon reduction benefits. Without capital investment Simultaneously provide a positive cashflow contribution”. Siemens plc, 2011
  • 4. Our Credentials: No1 In The Dow Jones Sustainability Index No1 in the Carbon Disclosure Project Leadership Index Carbon Trust Standard CAESER Environmental portfolio - €28 billion in 09/10 Saved our clients around 270M Tonnes CO2e through 2010 Siemens plc, 2011
  • 5. Introduction: The Policy Landscape Drives Concrete Measures Global, EU & UK Policy EU Regulation & Standards UK Specific Measures Kyoto Proocol and targets on Eco Design directive (“EuP” & Climate change levy (CCL) “ERP”) greenhouse gas reduction Energy performance of Climate change agreements IPCC reports buildings directive (CCAs) Stern report on the financial Landfill directive Renewable obligations, implications of climate Waste Incineration directive ROCs and FITs (WID) change Measuring instruments Renewable heat incentive UK government targets – directive (MID) (RHI) 80% CO2e reduction by 2050 Environmental permitting Building regulations – “Part programme. UK energy policy L2” European emissions trading Climate Change Act scheme (EU ETS) Carbon reduction International standards:-. commitment (CRC EES) Low carbon strategy: EN 16001 Enhanced capital Transport EN 15232 allowances (ECAs) Manufacturing Pr EN 15900 Landfill tax Selected examples only Siemens plc, 2011
  • 6. Best Practice Energy, Cost & Carbon Reduction Systematic strategy : • Measure and monitor • Automation and Control • High efficiency products and solutions • Low carbon and renewables • Innovative finance solutions Siemens plc, 2011
  • 7. A “Best Practice” Approach To Energy Efficiency Tools and processes exist to facilitate this systematic Consultancy led • A systematic approach approach continuous improvement delivers maximum cost and programme carbon reduction. • This process forms the basis of a long term continuous improvement programme. • Simplifies environmental compliance issues • Aligned with requirements of the international energy management standard BS ISO 50001 / BS EN 16001 • 400% savings compared to Logical structure and Ongoing consultancy an ‘ad hoc’ approach support to oversee project sequence implementation Siemens plc, 2011
  • 8. Financing Energy Efficiency & Carbon Reduction Projects • Grants? (LEPs, Regional organisations?...) • Carbon trust loans (New – April 11) • Salix – public sector loans? • Green deal / GIB? • Private sector finance • Enhanced capital allowances (ECAs) • SFS Siemens plc, 2011
  • 9. Examples Propositions - Illustrative Food & Beverage Facility (Dairy) Energy costs reduced by £1.0M (36%) per year Carbon emissions reduced by 4, 500 tonnes (35%) Projects cost £1.9M with payback in 23 months Financing: Monthly financing costs = £60k Reduction in utility costs = £83k Net cashflow contribution = £23k / month After 3 years, client enjoys full benefits Compliance with energy and environmental regulations Siemens plc, 2011
  • 10. Summary Of Proposition Starting point is expert energy audit – typically 5 to 10 days per facility: Systematic evaluation of historical consumption data and can include energy balance / water balance etc Review of regulatory issues Evaluation of key opportunities and recommendations Preparation for continuous improvement programme Recorded in the Siemens Energy Navigator Proposition for implementation phase & solution delivery Options for zero capital investment with positive cashflow contribution Siemens plc, 2011
  • 11. Best Practice Energy, Cost & Carbon Reduction Stephen Barker Head Of Energy Efficiency & Environmental Care Siemens plc, Industry Sector UK Stephen.barker@siemens.com Copyright ©Siemens AG 2010. All rights reserved.