INNOVATIVE FINANCING OF ENERGY EFFICIENCY RETROFITS. Triona Casey
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1st Thematic Seminar on Sustainable Energy Systems in Municipal Authorities and on Innovative Financing Tools. STEP PROJECT INTERREG IVC. Helsinki
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INNOVATIVE FINANCING OF ENERGY EFFICIENCY RETROFITS. Triona Casey
- 1. Innovative financing of Energy Efficiency Retrofits Midland Regional Authority
- 2. The Mission • Our goal is to empower each Midlands local authority to achieve a 33% saving in energy use by 2020 – “The public sector will improve its energy efficiency by 33% and will be seen to lead by example – showing all sectors what is possible through strong, committed action” (NEEAP) Midland Regional Authority Midland Energy Agency Laois Offaly Longford Westmeath
- 3. What is The Problem? • Local Authorities represent more than 25% (€120M) of the Public Sector Energy Spend • Water Services ≡ 53% of total energy • Reduced Capital Investment • Limited grant assistance • Reduced Operations budgets 2012 2013 2014 2015 2016 Total 371 329 296 296 296 275 295 315 335 355 375 395 Water Services Investment €M 53% 30% 17% Public Sector Energy Spend CCMA 2012 Water Services Public Lighting Other
- 4. Where to start ?
- 5. How does my pump system perform ?
- 6. Procuring the replacement pump
- 7. What is the Good Practice (GP) ? • The GP Framework comprises… – Benchmark tool – Training – Community – Business case – Rapid Procurement tools
- 8. What are the Results of the Good Practice (GP)? • Energy Performance Certs • Over 300 trained engineers • Online Community of Practices (with SEAI) • Business Case for pump replacement • Reduced Energy costs • Significant Energy savings of over 800MWh per annum in MRA region
- 9. Benchmarking our GP • Potential (21M, 139GWh, by 2020) • Scalable • Transferable • Strengths/Weaknesses
Notes de l'éditeur
- MEAEngineers employed by LCCRole in energy management within the Midland Local Authorities, Laois Offaly . . . .SI 542 of 2009 regulation which sets energy efficiency saving targets for IrelandPublic bodies shall fulfill an “exemplary role” with regard to energy efficiency, with the aim of achieving the energy savings targetEUROPEAN COMMUNITIES (ENERGY END-USE EFFICIENCY AND ENERGY SERVICES) REGULATIONS 2009NEEAPNational Energy Efficiency Action Plan 2009- 2020“2020 vision”
- In 2011 €120m was the energy spend in LA sectorElectricity consumption in the LA sector was 26% of the total electricity consumed in the public sectorThe majority of electricity consumption is used in the provision of water services (53%). (CCMA, 2012)In the Midlands Region, energy spend per annum is approx €7mThe main energy users in the Water Services sector are water treatment plants, pumping stations and waste water treatment plantsInvestment has been through capital investment and rural water programsHowever since 2007, there has been a much tighter fiscal constraint on infrastructure expenditure and investment in capital programs has been reducedThe principal grant scheme supported by the SEAI and used by local authorities is the Better Energy Workplace grant and its predecessorsFrom 2009-2012, there has been a 35% reduction in Central government fund allocations to Local Authorities, which has limited the number and scale of EE projects to only those with low risk and paybacks typically less than one year
- Now to introduce our GP and how it attempts to deal with these challenges…inefficient pumping solutions were installed, lack of knowledge of life cycle cost of pumps, not being operated at optimum levelsIn 2008, the Midland Energy Agency developed a basic energy performance benchmark tool that allowed an engineer to quickly establish the performance of a pump systemestablish the business case for capital upgradesaverage pump efficiency was found to be 45% in Midlands area through EPI benchmarking
- Output from the benchmarking program was the performace cert of the pumpLike energy rating certThis can be integrated into business case reports and procurement documents.
- Used SEAI tool then to specify the replacement pumpBrought standardisation to the way pumps are procured
- These tools alone were not sufficient to kick-start a replacement program The GP provides a “framework” for …Benchmark tool already mentionedNational Training program for LA engineersCommunity of Practice established by MEA in Midland region provide ongoing support /informationCollaboration portal hosted by SEAI Energy Link
- Reviewing the projects already carried out in the Midlands region, over 800MWh of energy savings per annum
- The GP has the potential to implement savings of up to €30Million by 2020 with 198GWh in energy savings.Documents/Tools are generic are can be scaled and transferred for use …once it is a pumping system, the GP applies. Strengths: allows for pumping upgrades where otherwise lack of finance would be an obstacle. Short paybacks. Cheaper running costs.Weaknesses: Still requires investment from LA budgets when the squeeze is being put on them. In plants where longer paybacks are noted, less likely to carry out upgrades.