Carbon Saving Public Sector
2011-12
21 July 2011
Newcastle
Welcome and introductions
Andy Johnston, Chief Executive, Local Energy
Learning from mini-audits:
CRC best practice for the
public sector
Karen Lawrence, Head of CRC and Consultancy, Local Energy
What are mini-audits?
• Examine the documents and data relating to the
Council’s CRC participation
• Highlight areas of non-compliance
• Identify where additional data or evidence is
required
• Make recommendations for future improvement
• Share learning with other authorities
• Note: Not a replacement for internal audit
Key areas
•
•
•
•
•
•
Identification of CRC emission sources
Energy data collection and management
Footprint and annual reports
Evidence pack management
Audit and review
Policies and procedures
Identifying your CRC emissions
• Looks simple – but energy management unit
(EMU) doesn’t know everything!
• Make contacts in:
–
–
–
–
–
Estates/maintenance
Commercial property
Fleet
Schools
Sustainability/climate change (for renewables)
• Establish a CRC team and include every
department that may contribute CRC emissions
(even if they are subsequently excluded)
Energy data collection
• Actual data
– HHM/AMR data
– Supplier data (billing, actual meter reads, annual
statements)
– Your own (or third party) meter reads
• Estimated data
– Supplier billing, annual statements
– EA approved estimation techniques
• Gas/electricity fairly simple – other fuels often
more complex
Energy data management
Use whatever suits you, but ensure you have a
simple method for capturing everything in one
place
• Energy management software (EMS),
monitoring and targeting (M&T) software or
other electronic data management system
• Manual data capture onto spreadsheet (EA
source list tool has been useful for many)
Footprint and annual reports
• Key requirement: Core and residual data, actual
and estimated, and exclusions/exemptions
But don’t forget:
• Electricity generation (claiming ROC/FIT or
eligible for EGC)
• Early action metric scores (AMR and CTS)
• Turnover/revenue expenditure
• Carbon management questions
• Open text field
Evidence pack management
• Devise a clear structure that works for you
• Make someone responsible
• Ensure documents are protected (cannot
be amended, replaced, deleted)
• Use ‘snapshot’ or ‘time stamp’ features
where available (or screenshots)
• Avoid duplication – use links if possible
• Delete/archive any incorrect or irrelevant
documents
Audit and review
• Carry out internal audit annually
• Act on recommendations!
• Check and update information regularly
(key personnel, contact details etc)
• CRC regulations will change for Phase 2:
your structure/procedures may need to
reflect that
Policies and procedures
• Write CRC into high-level policies and
action plans (energy policy, carbon
management plan, corporate risk register)
• Write a ‘CRC manual’ - and use it!
• List key personnel and their role in CRC
• Write procedures (EMU should have them
for most things already) and make sure
everyone knows about them
Some common pitfalls…
Internal communication
Issues
• Difficulty identifying
residual and out-ofcontract fuel use
• Lack of cooperation from
other departments
• Difficulty identifying who
can provide the info.
• Limited understanding of
CRC and implications of
non-compliance
Solutions
• Establish a CRC team
• Identify senior contact in
each department and
make them responsible
• Supply deadline dates
and nature of info
required – check
progress at every CRC
team meeting
• Ensure all changes are
notified and records kept
Schools
Issues
• Lack of energy data if
out-of-contract
• No-one responsible for
energy/carbon
• Limited understanding of
CRC and implications of
non-compliance
• Limited access to meters
Solutions
• Bring into contract
wherever possible
• Identify a ‘responsible
person’ for each site
• Implement a meter
reading programme
(school staff or third
party)
• Online data entry for
meter readings really
helps!
Budgeting for CRC allowances
Issues
• Forecasting is new to
everyone
• Finance department
possibly not engaged
• Changes during the year
will affect number of
allowances required
• Level of estimation will
affect reported carbon
Solutions
• Engage with finance
ASAP (CRC team)
• Use 2010-11 annual
report as a starting point
• Consider changes to
estate/building stock
• Streetlighting – have you
changed back from
dynamic to passive?
• Will you estimate less?
• Prepare best/worse case
calculations
Don’t give me advice or
ideas… CRC
I’m the CRC manager!
CRC footprint and annual
report surgery
The Local Energy team
Break
CRC evidence packs and next
steps
Peter Chasmer, Consultant, Local Energy
The Evidence Pack
• Centralises information
– Overview document with references
– Roles and responsibilities clearly defined
– All management levels: policies, procedures and
practices
• Structured audit trail
– Estimations and justifications
– Carbon Trust and AMR %
– Issues, changes and exceptions
Last year’s Guidance
Evidence
Packs
Registration &
Qualification
2008
2010 – 2011 Footprint Report Evidence Pack Structure
Key Personnel Information
Declaration of Senior Officer, Primary Contact and Secondary Contact
The information regarding the Senior Officer, Primary Contact and Secondary Contact can be
found at: C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\Key
Personnel Information
Participation in Scheme
Organisational Structure
Participation in the scheme
HHMs
Issues
Declaration of participation in the Carbon Reduction Commitment Energy Efficiency Scheme
can be found at:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\Participation in
Scheme
Risks
Definition of “Organisational Structure”
Estimations
Footprint Report
2010-2011
Details relating to the organisational structure of The Organisation can be found at:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\Organisational
Structure
Key Personnel Information
Participation in Scheme
Data
MPANs
Organisational Structure
MPANs
Core Energy Supply Data
MPRNs
Residual Energy Supply
Date
Estimations
AMRs
CTS or equivalent
Issues
The MPAN data for meters that are not billed through the central contract (schools/leisure
centres, etc.) with The Organisation but whose meters The Organisation must report on for
the purposes of CRC has been ratified by The Energy Management Team. The data and
details regarding the data can be found in:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy
Supply Data\MPANs
Risks
Annual Report
2010 - 2011
Key Personnel Information
Participation in Scheme
MPRNs
Organisational Structure
MPANs
Core Energy Supply Data
MPRNs
Included Residual Supply
Data
Estimations
CTS or equivalent
Issues
The MPAN data for meters that are the responsibility of The Organisation and are billed
through the central contract has been collected through The Organisation Energy
Management System. The data has been ratified by The Energy Manager. A full list of the
2010 - 2011 MPAN data will be downloaded from The Organisation Energy Management
st
System on April 1 2011 and stored for reference in:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy
Supply Data\MPANs
The Energy Manager has operational management responsibility for this data. The bills that
this data is based on are also stored in The Organisation Energy Management System and
available for auditing purposes. A processing manual can be found at:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy
Supply Data\MPANs
The MPRN data for meters that are the responsibility of The Organisation and are billed
through the central contract has been collected through The Organisation Energy
Management System. The data has been ratified by The Energy Manager. A full list of the
2010 - 2011 MPRN data will be downloaded from The Organisation Energy Management
st
System on April 1 2011 and stored for reference in:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy
Supply Data\MPRNs
The Energy Manager has operational management responsibility for this data. The bills that
this data is based on are also stored in The Organisation Energy Management System and
available for auditing purposes. A processing manual can be found at:
C:\Energy Management\CRC\Evidence Packs\Footprint Report 2010-2011\CORE Energy
Supply Data\MPRNs
Risks
Annual Report
2011 - 2012
The MPRN data for meters that are not billed through the central contract (schools/leisure
centres, etc.) with The Organisation but whose meters The Organisation must report on for
the purposes of CRC has been ratified by The Energy Management Team. The data and
details regarding the data can be found in:
Source List Tool
•
•
•
•
•
Easy to use?
Any errors/mistakes?
Time consuming or time saving?
Important for analytical purposes?
Alternatives?
– Carbon Counter
– SystemsLink/TEAM add on
Outstanding Work
• Good/Standard practice
• “4 questions” evidence
• Roles and responsibilities
– Primary/Secondary Contact Updates
•
•
•
•
Renewables/Electric cars
Half-hourly data for AMR
Profiles classes (especially 01 and 02)
Streetlighting – in or out and WHY
Next steps
•
•
•
•
•
Analyse your data
Bring sites back into contract
(Re)write your Carbon Management Plan
Reduce your emissions
Increase your carbon saving projects
– FITs and RHI
– Energy efficiency projects
• Internal or 3rd party audit
• Prepare for external audit within this phase
Thank you
Any comments/questions?
CRC simplification:
Consultation proposals
Karen Lawrence, Head of CRC and Consultancy, Local Energy
Where are we now?
• DECC’s simplification discussion papers
published in January 2011
• Stakeholder views, proposals and suggestions
sought
• “Simplifying the CRC Energy Efficiency Scheme:
Next steps” published June 2011
• Formal public consultation on draft legislative
proposals expected in early 2012
Decisions already made
• The CRC will be retained in a simplified
form from phase 2 onwards (i.e. no
changes before April 2013)
• Existing emissions coverage will be
retained at a broadly similar level
• Retrospective sales of allowances to
continue throughout introductory phase
Key proposals affecting public sector
• Qualification
– Simplified rules based on electricity through settled
HHMs only (i.e. excluding AMR)
– Reduced threshold designed to retain current
coverage only (not to expand the Scheme)
Key proposals affecting public sector
• Scheme coverage
– Reduced number of fuels included in the Scheme
(electricity, gas, kerosene and diesel (where the latter
two are used for heating purposes))
– Supply definition expanded to include passive
unmetered supplies (i.e. street lighting)
– Smaller sources excluded (i.e. electricity meter profile
classes 01 and 02 excluded)
– Treatment of Academies to be reviewed – options
paper to be published ‘shortly’
Key proposals affecting public sector
• Reporting
– 90% rule removed, requiring reporting of 100% of all
four fuels (electricity, gas, kerosene and diesel)
– No footprint report or residual measurement list
required
– Greenhouse gas reporting emissions factors to be
used (in place of fixed emissions factors per phase)
Key proposals affecting public sector
• Allowances and trading
– No emissions cap
– No auction of allowances
– Two sales of fixed price allowances each year
• Lower price at beginning of year (forecast sale)
• Higher price at end of year (retrospective sale)
Key proposals affecting public sector
• Record keeping
– Review of evidence pack burdens after one
report/audit cycle (2011-12)
– Data retention requirements reduced to 6 years in line
with other regulatory schemes (currently up to 12
years following compliance year)
You may comment on the content of the paper
before the formal consultation package is drafted
Contact DECC crc@decc.gsi.gov.uk
by 2nd September 2011
Karen Lawrence
Head of CRC and Consultancy Services
karen.lawrence@lgiu.org.uk
Lunch
New partnerships and
services
Andy Johnston, Chief Executive, Local Energy
What is Carbonscape?
• Carbonscape is a service available to all organisations
that are required to comply with the CRC
• By handling all of the data, administration and reporting
aspects of the CRC it allows you to concentrate on key
business issues such as reducing your carbon
emissions, lowering your energy bills and focusing on
the raft of new policy initiatives
• By reducing your costs, it frees up budgets to invest in
energy saving
• By ensuring compliance, it protects the reputation of your
organisation
Carbonscape is flexible
Fully outsourced CRC service
or
Bespoke package to help with any aspect of
CRC compliance or management
Solar PV FITs:
Rent-a-roof or DIY?
Peter Chasmer, Consultant, Local Energy
Craig Copeland, Lead Carbon Consultant, Carbon Descent
The Basics
• Solar PV – Photovoltaic electricity generation
– Different from Solar Thermal
– Must be MCS accredited for FIT eligibility
• FIT - Feed-in tariff
– Government-backed measure
– Fixed income for every kWh of electricity you
generate
– Additional fixed income for exporting to the grid
Feed In tariffs
Anaerobic digestion
≤500kW
12.1
20
Anaerobic digestion
Hydro
Hydro
>500kW
≤15 kW
>2MW - 5MW
9.4
20.9
4.7
20
20
20
<2 kW
10.5
10
Solar PV
≤4 kW new [C]
37.8
25
Solar PV
Solar PV
Solar PV
≤4 kW retrofit[C]
>4-10kW
>10 - 100kW
43.3
37.8
32.9
25
25
25
Solar PV
Wind
Wind
>100kW - 5MW
≤1.5kW
>1.5MW - 5MW
30.7
36.2
4.7
25
20
20
9.4
to 2027
Micro-CHP [B]
Existing generators transferred from RO
What schemes would you be interested in?
14
12
10
8
Rent a roof
DIY
6
ESCO
4
2
0
Larger
Smaller
Council Buildings
Housing
Schools
Fire stations and
Libraries
Insolation
Factors
• Roughly 1,000 across UK
• More in south west
• Less in north
• If it’s 25pkWh, it’ll produce
25MWh per annum
Money
• Initial Outlay
– £5,000-£6000 per house (large scale)?
• Energy production
– 2pkWh per house. Flats? Schools?
• Yearly Return
– £1000 (savings + FITs) per house?
• Maintenance/yearly cost
– Solar panels
– Inverters: £1500, 5-10 year life expectancy.
Do you have capital available to take
advantage of FITs for solar PVs?
7
6
5
4
Larger
Smaller
3
2
1
0
Yes
No
Partial
Loan
Invest to save
Pros and Cons
Police Authority Funded
Roof Lease
3rd Party Funded
Pros
Cons
Pros
Cons
Pros
Con’s
We keep all the FIT
payments.
Full capital outlay.
No capital outlay.
No FIT payments.
No capital outlay.
Financial agreement
with an external
company.
Reduction in energy
needed from grid.
Will have to pay for
maintenance.
Reduction in energy
needed from grid.
Won’t save us much
money per year.
Reduction in energy
needed from grid.
The company would
own the panels until
paid off.
We can control the
type of installation
and panel used.
Will have to arrange
installation ourselves.
Possible one-off
payment for use of
roof.
We won’t own the
panels until 25 years’
time (lower
performance, more
maintenance, no FIT).
We can control the
type of installation
and panels used.
Who gets the FITs?
No maintenance
costs.
Can’t control types of
panels used.
Other company
arranges installation.
Still have to pay for
maintenance?
Will have to arrange
installation ourselves.
Upfront or annual payments
• Per meter squared: £15 - £35
• A “large roof”: £25,000
Per m2, 2
A "large"
Roof, 1
None - just
free
electricity,
4
• Part-FIT: How much per kWh?
• Per house roof: £35 - £500
• Just free electricity came top:
surprising?
Part-FIT, 3
Per
domestic
roof, 2
Other issues and comments:
• “Our legal team have advised that even if the PV is fitted for free, the
value of the contract is the amount of FIT the installing company could
receive. Therefore full procurement rules must be applied.”
• “They require a 25 year agreement to be signed and no one in the council
is willing”
• “…none of the companies who submitted would be capable of delivering
on a large scale.”
• “…the ESCO model…has the most legal and procurement complexities and
therefore would take the longest time to deliver.”
• “…procurement for the rent-a-roof schemes as when there is no capital
investment and the electricity offered is free it doesn’t fall neatly into a
procurement exercise and seems to confuse my procurement colleagues!”
• “…YPO are working on a procurement framework that will be ready for
August. “
• “…there has been some vandalism on a roof mounted solar thermal
installation.”
Thank you
Any comments/questions…
Carbon Saving Public Sector:
The year ahead
Karen Lawrence, Head of CRC and Consultancy, Local Energy
CSPS 2011-12: CRC support
• Two free delegate places at a series of events
throughout the project
• Regular CRC updates by email
• An online discussion forum
• Opportunities to network with colleagues at events and
online
• Advice, guidance and support throughout from Local
Energy staff
• A mini-audit to identify potential errors and omissions
and to help you minimise your allowance liability
CSPS 2011-12: Carbon reduction
In addition, we will be:
• Providing updates and guidance on energy
efficiency and renewable energy options to help
you cut carbon emissions and reduce energy
costs
• Helping you identify the best combination of
technologies and incentives available, including
FITs and the RHI
• Examining how they affect your CRC liabilities
CSPS 2011-12: Best practice
We also plan to build up a database of CRC documentation
relevant to public sector organisations
This may include CRC policies and procedures; evidence
pack templates; CRC audit reports; supplier
recommendations (i.e. CRC software, meter installers,
energy suppliers, consultants)
Tell us what you need
Timetable
• July 2011 – CSPS event 1: launch
• October 2011 – CRC league table published
• October/November 2011 – CSPS event 2: league
table results, emissions reduction and forecasting
• March 2012 – end of 2nd CRC compliance year
• April-July 2012 – first sale of CRC allowances
• April/May 2012 – CSPS event 3: project review,
lessons learned, buying allowances
• July 2012 – submit annual report and surrender
allowances
Karen Lawrence
Head of CRC and Consultancy Services
karen.lawrence@lgiu.org.uk