Implementing and financing an
energy efficient lighting project
Myles McCarthy
Director, Implementation
20 November 2013
Introduction
Today’s presenter
Myles McCarthy
Director, Implementation
Carbon Trust
Today’s objectives
›
Why am I here?
›
Energy savings through lighting
›
Barriers to implementation
›
Energy Efficiency Financing
›
Case studies
2
Agenda
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
3
Carbon Trust
Our mission is to accelerate the move
to a sustainable, low carbon economy
We are independent experts on carbon reduction
and resource efficiency, who reinvest surpluses
from group commercial activities into our mission
4
We help our clients benefit from the
opportunities of sustainable, green growth
ADVICE
FOOTPRINTING
TECHNOLOGY
Business strategy
Measuring
Implementation and Finance
Helping businesses capture
the opportunities in a
sustainable low carbon
world
Understanding the
environmental impact of
an organisation, product or
service
Providing expertise and
support to businesses to put
energy efficiency plans into
action
Government support
Certifying
Providing cutting-edge
policy advice, insights and
programme delivery on the
transformation of markets
Providing independent
verification of
organisational or product
footprints to endorse
sustainable leadership
Public Sector Advice
Innovation
Partnering with companies
and governments seeking to
create value from the clean
technology revolution
Enabling the public sector to
cut costs and emissions
5
Our expertise is built on deep experience
We have worked with:
75%
FTSE 100 companies
and undertaken:
70%
Local Authorities
90%
Higher Education Institutions
50%
NHS Trusts
to deliver:
35,000
on-site surveys
50,000
advice line calls per annum
£1.6bn
spend on energy efficient
equipment
£4.5bn
energy waste avoided
6
Agenda
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
7
The opportunities are found across all sectors
Operational Efficiency and Behavioural
Change
Low/no cost savings through measuring and
monitoring energy use, staff engagement and
appropriate improvements to the use and
maintenance of existing equipment
Industrial/Process Energy Efficiency
Investment in new industrial technologies and
processes including:
• Motors & drives
• Refrigeration
• Compressed air
• Process heating
• Process controls
Building Energy Efficiency
Renewable Energy
Investment in new building technologies
including:
Investment in equipment to generate local
renewable heat or electricity:
• Controls
• Air conditioning
• Biomass
• Solar (thermal/PV)
• Lighting
• Ventilation
• Heat pumps
• CHP
• Wind
• Waste to energy
• Heating
The top left box is often the area customers will want to focus on first and gain some early
wins
8
The case for investing in energy efficiency is
compelling
Indicative potential investment returns
Energy efficiency
40-50%
'Typical' business investments
10-15%
Renewable energy
(inc. subsidies)
5-10%
0
10
20
30
40
50
60
Internal rate of return (%)
Source: Carbon Trust analysis
9
Lighting, training and MM&T are the
commonest ways to improve energy efficiency
Which of the following technologies have you invested in to improve the energy efficiency of your
business in the last year?
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
10
Agenda
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
11
There are three key barriers to implementation,
…which we help organisations to overcome
Common barriers
Our unique service
Lack of awareness
Technical advice
Lack of confidence
Accredited supplier scheme
Energy
efficiency
made easy
www.carbontrust.com/greenbusinessdirectory
Lack of funds
Energy efficiency finance
12
Technical advice
We provide bespoke technical support
throughout the implementation process
Site Surveys
Impartial, authoritative,
impactful advice
Identifying the opportunity
Data analysis; Investmentgrade surveys; Benchmarking;
Staff training
Business Case
Robust, evidence-based
proposals
Making the investment case
Financing options; Taxefficient solutions; Whole-life
cost; Market intelligence
Procurement
Expert, best-value procurement
service
Implementation
Supplier sourcing;
Performance specification;
Tender analysis & evaluation
13
Accredited supplier scheme
Our accredited supplier base ensures
best-in-class solutions
Workforce
knowledge,
skills and
experience
Adherence to
quality,
environmental
and safety
standards
Training,
contracting
and customer
processes
Technical case
studies and
client
references
Professional
memberships
“Being accredited by the Carbon Trust really underlines our credibility. When clients see
the Accredited Supplier logo, it immediately puts them at ease.”
- John Robb, Director, Cooper Lighting and Safety
14
Accredited supplier scheme
Our accredited suppliers are listed on the
Green Business Directory
www.carbontrust.com/greenbusinessdirectory
›
Searchable directory of Carbon
Trust accredited suppliers
›
Hosted on the Carbon Trust
website, which receives over
400,000 unique visitors each year
›
Aiming to become the ‘go to’
directory for organisations
searching for high quality suppliers
with a proven track record
›
Wide range of energy efficient
equipment and renewables
technologies covered
›
Email info@carbontrust.com or
call 020 7170 7000
15
Agenda
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
16
Energy Efficiency Finance
Flexible financing can make projects cash
flow positive from day one
£550m partnership between the Carbon Trust and Siemens Financial Services
Financing structured so that savings exceed repayments
Available for energy efficiency and renewables projects from as little as £1,000, with no upper limit
Independent assessment of energy saving potential conducted by the Carbon Trust
Illustrative savings profile
During financing
Annual saving (£k)
›
›
›
›
After financing
60
50
40
30
20
10
0
1
2
3
4
5
6
7
Year
17
How EEF can supports lighting
suppliers
How EEF can supports lighting
customers
Supports growth in sales
Convenient and Fast
Funding available for all types of businesses
Affordable payments and flexible terms
Credibility of a Carbon Trust Assessment
Easier budgeting
Reduce risk of losing deals to competitors
Leaves existing lines of credit intact
Increased customer satisfaction
Tax efficient
Widens scope and scale of projects
Environmental benefits
Agenda
› Why am I here?
› Energy savings through lighting
› Barriers to implementation
› Energy Efficiency Financing
› Case studies
19
Case Study #1: Small retail shop
Existing Lighting System
Mixture of 79 luminaires at London
high-street shop
Tungsten halogen spotlights and some
fluorescent lighting to be replaced
Existing equipment is typically
inefficient with shorter lamp life
Proposed Lighting System
LED replacements of suitable types to
replace all existing fittings
Higher efficiency with improved efficacy:
up to 90lm/W for LED*
Longer life: up to 60,000Hrs to L70 for
LED**
Existing Luminaire
Replacement Lamp
50W MR16 Halogen Down light
9W GU10 Down light
35W MR16 Halogen Down light
9W GU10 Down light
50W GU10 Halogen Down light
9W GU10 Down light
45W Specialist watch cabinet lighting
LED Strip-light
36W 4ft Fluorescent
50W E27 ‘Golf Ball’ Lamps
20W 4ft LED tubes
10W LED E27 ‘Golf Ball’ lamps
40W BC lamps
Notes
*lm/W (lumens per watt) is a measure of the amount of light produced in lumens for each watt of electrical energy.
** L70 is a term which denotes lamp life to a stage where only 70% of the original light output is produced. As LEDs
degrade rather than fail this has become a standardised measure to define lamp life.
10W LED BC Lamps
Small retail shop: Summary of energy cost
saving assessment
£140
£132.00
£123.76
Monthly Energy &
Maintenance Saving
Monthly Finance
Payment
£120
£100
£80
£60
£40
£20
£0
Based on a financing term of 38 months
Our assessment indicates that the proposed project should result in monthly
energy and maintenance cost savings of £132.00
Small retail shop: Projected Year 1-7
cumulative savings
Case Study #2: Transport & Storage Company
Existing Lighting System
325 existing 400W High Bay Metal
Halide luminaires across eight
warehouse sites
Including ballast losses each fitting
consumes 450W
Lighting operates 24hrs per day 7 days
per week 51 weeks of the year
Existing equipment is typically
inefficient with shorter lamp life of
20,000 hours
Existing Inefficient Luminaires
400W Metal Halide High Bay Lighting
Common throughout all eight warehouses.
Proposed Lighting System
165W & 250W Induction Luminaires
Higher efficacy: up to 85 lm/W*
Long lamp life: up to 80,000Hrs
Reduced re-lamping costs will be
achieved due to long lamp life of
induction fittings
High Efficiency Luminaires
High Bay Induction Lighting
Warehouse 1,3 & 5 250W
Warehouse 2,4,6,7 & 8 165W
Notes
*lm/W (lumens per watt) is a measure of the amount of light produced in lumens for each watt of electrical energy.
Transport & Storage Company: Summary of
energy cost saving assessment
£6,000
£5,303.00
£5,000
£4,000
£3,000
£1,844.07
£2,000
£1,000
£0
Monthly Energy
Saving
Monthly Finance
Payment
Based on a financing term of 60 months
Our assessment indicates that the proposed project should result in monthly
energy and maintenance cost savings of £5,303.00
Transport & Storage Company: Projected Year
1-7 cumulative savings
Tesco Buying Club
A collaborative approach to
implementation
›
Collaborative procurement model to help Tesco’s suppliers invest in
energy efficient lighting solutions
›
Part of Tesco’s drive to reduce the carbon footprint of the products it
sells by 30% by 2020
›
Single solution provider procured by the Carbon Trust
› Competitive process, limited to Carbon Trust Accredited Suppliers
› Selection based on quality, whole-life cost and capital cost
›
Collective purchasing power used to negotiate discounted rate card
›
Successful pilot concluded in September; full roll out now underway
“Our suppliers have told us that cost and lack of knowledge can be
the biggest barriers to making investment in energy savings. The
Buying Club will address these concerns and support them in
reducing their carbon footprint in a really practical way.”
- Chloe Meacher, Tesco Climate Change Manager
26
Get in touch:
Myles McCarthy, Director of Implementation, Carbon Trust
› myles.mccarthy@carbontrust.com
› 07876 390 045
Ian Hunt, National BDM, Energy Efficiency Finance, Siemens
› ianhunt@siemens.com
› 07921 245 467
STAND
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