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  1. 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. 2. European Strategic Energy Policy Context & Drivers UK Energy EU 20–20–20 Targets Policy ImpactPolitical Motivations EU Energy Legislation to drive delivery1.Make the best use of Security &EU’s indigenous Solidarity of 20-20-20 targetsenergy resources Planthrough renewables2.Reduce GHG EU Energyemissions Efficiency3.Increase energy Packageefficiency4.Ensure affordable 1. 15% Renewablesenergy 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. 3. “Why would an energy company want me to use less energy?”© 2007 E.ON
  4. 4. The Energy TrilemmaWe’re building the low carboncommunities of tomorrow, today.That means reducing carbonemissions and doing so whilekeeping energy costs down andthe lights switched on.The Energy Trilemma lies at theheart of the local energychallenge too!© 2007 E.ON
  5. 5. Malmö Western Harbour1990s © 2007 E.ON Photo: Malmö Municipality
  6. 6. The Western Harbour,2009© 2007 E.ON
  7. 7. Regenerating Malmo, Sweden.19902009 • 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. 8. Decentralised energy across Malmö gives them fuel flexibility - butit’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. 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. 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 CamerasDampers 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. 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. 12. Dalston Lane, London Winner of CHPA Community and Residential award 2009Size of development: 550 residentialunits + Library + small retail unitsEnergy Centre Plant: 185kWe CHP,250kW Biomass boiler, 3 x 1.45MWGas BoilersCO2 Savings: c.785 tonnes CO₂ peryear [code 3]Energy from Renewables: 10% © 2007 E.ON
  13. 13. • The market for Energy SavingContracts is immature in the UK• We delivered one of the veryfirst at Newham NHS Hospital• Our experience focused us ona ‘building specific’ solution tomeet the Trust’s needs• The Energy Saving Contractmodel brings capital to energyefficiency projects. © 2007 E.ON 27 June 2011, E.ON, Page 13
  14. 14. • We’re all now aware that the realchallenge is retro-fit buildings• Using thermal cameras, on-sitebuilding fabric analysis and detailedenergy use data, we answered a crucialquestion for these flats in Stoke• What combination of technologieswould yield greater value of energysavings than the cost to install them?• In this way you make clear theinvestment rationale for energyefficiency and carbon reductions © 2007 E.ON
  15. 15. We’re working on the UK’s largest carbon and energy efficiency projectin the Greenwich – 10,000 homes, 2.5M Sq. Ft. of Commercial space © 2007 E.ON
  16. 16. Innovative funding models for delivering decentralised energyAn ESCo can be a route tosolving funding issues,ensuring continuity ofsupply and building a long-term genuine partnerships © 2007 E.ON
  17. 17. Why would you want an ESCo on board?A good ESCo can de-risk yourproject, with capital infusionand specialist skills, deliveryand operational experienceSeek out an ESCo that cansupport you across the valuechain, from initial advice to‘whole life’ services © 2007 E.ON
  18. 18. Technology agnostic – client specific Variety of generation technologies match© 2007 E.ON solutions to specific applications 18
  19. 19. CHALLENGERS LEADERSWe’ve been E.ONrated as British Gas‘leading’ in thisspace by the EDFrespected and NPower CapabilityindependentVerdantix green- GDF Suez Good Energyquadrant report. Ecotricity Scottish & Southern Energy Scottish Power Smartest Power Gazprom Total Haven Power ENTREPRENURS SPECIALISTS © 2007 E.ON Momentum
  20. 20. If the green jobs of the low carbon economy are to takeflight – we need a genuine partnership between business and the communities they serve © 2007 E.ON