Supported by Capital Ambition, the London Energy Project enables the public sector to achieve...

Supported by Capital Ambition, the London Energy Project enables the public sector to achieve efficiencies through smarter energy buying, improved process and carbon reduction

Green Governor Guide

CRC Energy Efficiency Scheme

23 March 2010

Amanda de Swarte

London Energy Project

Head of Improvement and EfficiencyT: 020 8489 1102

E: [email protected]

Smarter buying. Less carbon. A better deal.

What we do and why

Measurable cashable and non-cashable savings and efficiencies

Achieve better value through strategic market management

Accelerated culture change, increased capability and efficient work practice within boroughs

Improved reputation and management of risks and costs

Managing the impact of new regulations and policy initiatives

31 out of 33 London Boroughs authorising LEP to act on their behalf


Our recent achievements

“huge savings, improved management efficiency. The benefits are clear” GO Awards judges comments 2009

CRC Guide and Toolkit used by over 350 public sector organisations

Ready to launch later this year

GS1 XML Global Invoice standard


Who we work with


New Statutory Duties for SchoolsThe CRC EnergyEfficiency Scheme


Background

Schools have an important role

Models of good practice

For pupils and communities

15% of public sector carbon emissions from schools

⅓ of school emissions from their buildings

All schools to be sustainable by 2020

The CRC Energy Efficiency Scheme is

UK wide mandatory emissions trading scheme aimed at larger private and public sector organisations

Will apply to 5 – 6,000 organisations including most Local Authorities

Begins in April 2010


Key features

Participating LAs responsible for emissions from all their maintained schools,

and any Academies and City Technology Colleges in their area.

LAs determine “residual sources” with 90% de minimis applied across LA

portfolio.

Monitor and report their emissions each year

Buy and surrender carbon allowances to cover actual emissions

Initially at fixed

Eventually as part of an auction process

Performance League Table available to all


Does this include all schools?

Yes – most Maintained Schools

Foundation and Trust

Voluntary Aided

Voluntary Controlled

City Technology Colleges

Academies

This applies even if the school buys its own energy or pays it own bills directly to the supplier

Does not apply to Independent Schools

PFI operated schools are also included but may be as part of their PFI operator rather than their Local Authority


What does this mean for Local Authorities?

Defined as Responsible Persons

Record and collate data about the energy consumption of its Maintained Schools

Purchase and surrender allowances to cover their schools’ actual emissions

Provide Footprint and Annual Reports

Typical London Local Authority will buy allowances worth £0.5M per year

Schools typically represent 40-60% of total emissions


What does this mean for schools?

Legal and administrative duties within the CRC

Defined as an Associated Person

Provide all Reasonable Assistance to the Local Authority

Gather and report all energy data to the Local Authority

Schools will not be charged for the allowances a Local Authority must purchase on their behalf

Schools can be charged for any losses incurred due the schools’ inability to reduce its emissions

Schools may also receive a financial bonus if the Local Authority performs well as result of schools reducing their emissions

Local Authorities can pass on fines incurred as a result of failure to report or reporting inaccurate emissions provided by schools


What must a school do?

Request Annual Statements from your energy suppliers

All gas and electricity

Other fuels e.g. heating oil, LPG etc

Collate an evidence pack

Annual Statements

Copies of invoices

Meter readings

Report the data to your Local Authority

Read meters regularly

Save energy


When must this be done?

1. Request an Annual Statement from Electricity Suppliers for the calendar year 2008 – NOW

2. Start recording energy use and collating an evidence pack – FROM April 2010

3. Request Annual Statements from all energy suppliers covering 1 April 2010 to 31 March 2011 – BEFORE28 February 2011

4. Provide evidence pack to your Local Authority – BEFORE 30 June 2011

5. Repeat steps 3 and 4 each year

6. Start saving energy – NOW

7. Use your Local Authority energy supply contracts,

• better value for school

• Ease of access to data


Where can schools get support?

From your Local Authority

The Carbon Trust - www.carbontrust.co.uk

ECO-schools – www.eco-schools.org.uk

Sustainable Schools – www.sustainablelearning.info


Meeting the requirements of the new Carbon Reduction Commitment.

Do I qualify or need to register

Who is in my CRC organisation

Complex legal issues, PFI, landlord tenant relationships

Taking an organisation-wide approach

Linking with other corporate priorities

Pulling together resources across directorates

Gathering data

Planning and communication

Engaging with schools

Compliance is not enough

Carbon Abatement Strategy

DOWNWARD PRESSURE ON BUDGETS


Assess qualification for Introductory Phase

Mandatory auction based emissions trading scheme

Targeting UK energy use emissions from business + public sector organisations

Medium / Large organisations: HHM electricity > 6,000 MWh in 2008

Auction revenue recycled to participants

HH electricity consumption is above 6,000 MWh per year

HH electricity consumption is less than 6,000 MWh per year

Legally required to register

Web based tool

Disclose identification information

Submit list of HH meters settled on HH market

Disclose total HH electricity consumption

Named director

Legally required to submit an information disclosure

Access the same Web based tool

Follow guidance and complete information

disclosure


How performance works (early years)

Three metrics:

1. Compulsory absolute metric

Change in annual emissions relative to preceding 5 year average

2. Voluntary early action metric

Extent of voluntary AMR

Extent of Carbon Trust Standard or

recognised equivalent

3. Voluntary growth metric

Change in emissions per unit turnover/revenue expenditure


What if LA doesn’t comply?

Failure to register

Failure to disclose information

Failure to provide footprint report

Failure to provide annual report

Incorrect reporting

Failure to hold and cancel sufficient allowances

Failure to keep adequate records

Mainly financial penalties

Failure to comply with key obligations

Proportional to the carbon footprint of the participant


Reaching out to schools

Local Authorities need to tell their schools about the CRC NOW!

Specially designed leaflet, explains:

The broader context for schools

The schools responsibilities

The Local Authorities responsibilities

Some practical steps to get prepared

Simple timeline

Opportunity to build on existing relationships

Additional services – DECs, energy buying, efficiency advice, AMR etc


Compliance is not enough

The CRC must be complied with

The CRC is not optional (for those that qualify)

The CRC does have teeth but

Simply complying misses the point of the CRC

Could harm corporate reputations

Lead to financial losses

The key is to use the CRC to drive down energy use

Each t/CO2 saved equates to c£200 reduction in energy bills

Each t/CO2 saved improves performance in the CRC

Participants must develop a Carbon Abatement Strategy and invest appropriately


Obtaining the necessary data

Schools are designated Associated Persons in the regulations

As such they must give all reasonable assistance

The exact data to be provided is yet to be fully defined

LAs must maintain separate records for their schools including:

CRC Footprint data

Residual Measurement List

For LAs buying for their schools this will be easier

For all it will require improve liaison and explicit instruction and milestones

Begin collecting data NOW


Recovering the costs

The regulations do not allow a Local Authority to recover the cost of administering the CRC or buying allowances from the schools or the Dedicated School Grant (DSG)

Current DCFS position - Local Authority to charge schools (or the Schools Budget) any penalties which are incurred through schools failing to reduce their emissions (or apply a bonus). If resolution allows this can be at an individual school level.

With up to 60% of emissions resulting from Schools this issue is significant for most LAs

Initial cost of allowances

Potential of schools to drag down overall performance and therefore increase costs in the CRC

Schools also have building, maintenance, culture, education, staff issues


Corporate and Schools

12

3

14,000,000

14,500,000

15,000,000

15,500,000

16,000,000

16,500,000

17,000,000

17,500,000

CO

2 (

kg

)

Years

Comparison trend of CO2 emissions by Schools vs Council Operations

Total - Schools

Total - Others


Driving down school emissions

Schools could account for up to 60% of emissions

Experience shows that school emissions are increasing

Increased use of IT

Increased use of air conditioning

Increased opening hours & broader curriculum

DEC rating indicate newer schools less efficient

No ability for LAs to force schools to reduce energy use or to invest in energy saving measures

Prudential borrowing can be charged to the DSG where the investment results in savings on recurrent expenditure greater than the cost of borrowing but;

Ring-fencing money within DSG for energy saving measures is difficult as there does not appear to be a way to recover capital through DSG revenue streams

Governor and schools forum involvement and support essential


Recycling uncertainty


Carbon abatement strategy

Good practice to develop and trial a carbon abatement strategy during the Introductory phase

Essential that a carbon abatement strategy is defined before the start of the capped phases in April 2013

Why spend more buying allowances when it would be more beneficial to invest in efficiency?


Auction strategy


The definition of AMR

Important for qualification – electricity AMR

The meter needs to be capable of capturing consumption data on at least a half hourly basis;

The meter must be the main fiscal meter for that supply and not a clip-on or sub metering device.

The meter is read remotely;

The electricity consumption data needs to be made available to the customer.

Important for the Early Action metric

Gas AMR definition amended to reflect available technology

Voluntary AMR includes:

Meters installed by your supplier as part of the license – must have the data though

Inventory based dynamic supply, traded on the HH settled market


Schools AMR

PfS announcement for display meters, going out to schools soon

Installation of a sub-meter and data-logger that will interface with each school’s ICT network to provide information via software that can be loaded on existing PCs

The display meters will

not be acceptable to suppliers for billing purposes

provide energy data at each school site for education purposes

Will not help schools/LAs comply with their legal obligations (e.g. CRC and have no Early Action Metric benefit)

Local Authorities will still need to approach schools to install AMR for Early Action Metric benefit (be aware schools forum and installation constraints)

Confusing for schools and difficult for LAs to communicate


Strategic and operational practices to help local authorities meet climate change and efficiency targets

Tell decision makers and key participants

Work with suppliers and service providers

Common CRC statement format

Best Practice audit pack

AMR strategy

Emissions forecasting plan

Carbon trading risk managed approach

Data is king – not sexy and not easy to compile, understand or

manage


Meter management

Site XXX Park

Address 176-178 XXX Park

Postcode N17 XXX

Location Meter in boiler room in basement

GPS location 53:19:17N /2:13:27W

Meter Serial No S88E163754

MPAN 1044178899644

Easting 528798

Northing 897825

Ladder Required

Keys FB1

Opening Hours Mon-Fri 9am-3pm

Contact Details 020 7777 9999

Fuel ID Elect

Meter photo Id PA998877


What reports are required

Registration by 30th September 2010 All mandatory and voluntary HH settled meters in 2008 and associated consumption (kWh) from 2008

calendar year

Any NHH electricity covered by compliant voluntary AMR in 2008

Any dynamic unmetered supplies (eg for street lighting) in 2008

The qualification year for the 1st capped phase beginning April 2013 is the scheme year April 10 – March 2011.

Carbon Footprint Report by 29th July 2011 (last working day of the month)

Once per phase (not annual), stays the same for entire phase

Based on actual emissions April 10 – March 2011

Defines CRC organisation, core and residual sources included in the CRC (those energy supplies which must be reported and for which allowance must be surrendered)

The Footprint year for the 1st capped phase is the scheme year April 11 – March 2012. The Next Footprint report is required by 31st July 2012.

Annual Report by 29th July 2011

Compiled each year

Reports actual energy consumption (kWh) (as defined in CRC footprint) April 10 – March 2011

Best Practice - Forecast Report by 1st April 2011

Compiled each year, tracks energy use and emissions from April 10 – March 2011, in order to buy allowances

For internal use and part of forecast strategy


Opportunities? Recycling Phases

Compliance Year

Financial Year

Purchase in Year (April)

Surrender in Year (July)

Recycling paid (Oct)

Performance in year

Bonus/Penalty percentage applied

1 2010-11 Reporting Only N/A N/A

2 2011-12 2011Footprint & annual report

2011 2010-11 10%

3 2012-13 2012(capped phase Footprint) & annual report

2012 2011-12 20%

4 (capped phase)

2013-14 2013 annual report 2013 2012-13 30%

Year 1 (Oct 2011) Year 2 (Oct 2012) Year 3 (Oct 2013)

Early Action Metric 100% 40% 20%

Absolute Metric 0 % 45% 60%

Growth Metric 0% 15% 20%


Opportunities - Early Action Metric AMR

Supports other agendas

CRC early actions

? Reduces energy consumption

Reduces invoice administration time and budget management

Provides clear evidence for energy management activity


HH consumption

Showing flood lighting at a training site


Value of Data

How much did this energy waste cost?

£1,460.00

What did LFB resolve the problem?

Fitted a timer inline with the photo cell to turn the lights offwhen not required.

How much did that cost?

£800.00

How long was the payback?

0.54 years


Variable Speed Drives in Leisure Centre

Present (kWh) Previous (kWh) Saving Move%

Week Total 36,020 42,514 6,496 Kwh -15.3


Variable Speed Drives in Leisure Centres by LB Haringey

Ensure consumption is determined using only theoperating hours of the centre and not 24 hr usage.

26 units installed in 2 Leisure Centres at total cost of £ 44,607

Anticipated savings of £ 43,860 / year projected

Energy saving £ 33,906

214 tCO2 (@£12) £2568 allowance saving p/a

Payback 1.25 years


Working together

Essential relationship between individual schools and its Local authority

Essential relationship between governors, headteachers, schools forum

Use some aspects as part of the curriculum

Trading and carbon abatement

Consumption and graphs

Choosing technologies

Culture and behaviour

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