Green Governor Guide
CRC Energy Efficiency Scheme
23 March 2010
Amanda de Swarte
London Energy Project
Head of Improvement and Efficiency
T: 020 8489 1102
E: amanda.deswarte@haringey.gov.uk
Supported by Capital Ambition, the London Energy Project enables the public sector to
achieve efficiencies through smarter energy buying, improved process and carbon reduction
What we do and why
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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
Smarter buying. Less carbon. A better deal.
Our recent achievements
“huge savings,
improved
management
efficiency. The
benefits are
clear”
GO Awards judges
comments 2009
Ready to launch
later this year
CRC Guide and
Toolkit used by
over 350 public
sector
organisations
GS1 XML
Global Invoice
standard
Smarter buying. Less carbon. A better deal.
Who we work with
Smarter buying. Less carbon. A better deal.
New Statutory Duties for Schools
The CRC Energy
Efficiency Scheme
Smarter buying. Less carbon. A better deal.
Background
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Schools have an important role
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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
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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
Smarter buying. Less carbon. A better deal.
Key features
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Participating LAs responsible for emissions from all their maintained schools,
and any Academies and City Technology Colleges in their area.
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LAs determine “residual sources” with 90% de minimis applied across LA
portfolio.
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Monitor and report their emissions each year
Buy and surrender carbon allowances to cover actual emissions
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Initially at fixed
Eventually as part of an auction process
Performance League Table available to all
Smarter buying. Less carbon. A better deal.
Does this include all schools?
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Yes – most Maintained Schools
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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
Smarter buying. Less carbon. A better deal.
What does this mean for Local Authorities?
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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
Smarter buying. Less carbon. A better deal.
What does this mean for schools?
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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
Smarter buying. Less carbon. A better deal.
What must a school do?
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Request Annual Statements from your energy suppliers
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Other fuels e.g. heating oil, LPG etc
Collate an evidence pack
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All gas and electricity
Annual Statements
Copies of invoices
Meter readings
Report the data to your Local Authority
Read meters regularly
Save energy
Smarter buying. Less carbon. A better deal.
When must this be done?
1.
Request an Annual Statement from Electricity Suppliers for the calendar year
2008 – NOW
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Start recording energy use and collating an evidence pack – FROM April 2010
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Provide evidence pack to your Local Authority – BEFORE 30 June 2011
Request Annual Statements from all energy suppliers covering 1 April 2010 to
31 March 2011 – BEFORE
28 February 2011
Repeat steps 3 and 4 each year
Start saving energy – NOW
Use your Local Authority energy supply contracts,
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better value for school
Ease of access to data
Smarter buying. Less carbon. A better deal.
Where can schools get support?
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From your Local Authority
The Carbon Trust - www.carbontrust.co.uk
ECO-schools – www.eco-schools.org.uk
Sustainable Schools –
www.sustainablelearning.info
Smarter buying. Less carbon. A better deal.
Meeting the requirements of the new Carbon Reduction
Commitment.
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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
Smarter buying. Less carbon. A better deal.
Assess qualification for Introductory Phase
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Mandatory auction based emissions trading scheme
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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 submit an information
disclosure
Legally required to register
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Disclose identification information
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Submit list of HH meters settled on HH market
disclosure
Web based tool
Access the same Web based tool
Follow guidance and complete information
Disclose total HH electricity consumption
Named director
Smarter buying. Less carbon. A better deal.
How performance works (early years)
Three metrics:
1.
Compulsory absolute metric
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2.
Change in annual emissions relative to preceding 5 year average
Voluntary early action metric
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Extent of voluntary AMR
Extent of Carbon Trust Standard or
recognised equivalent
3.
Voluntary growth metric
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Change in emissions per unit turnover/revenue expenditure
Smarter buying. Less carbon. A better deal.
What if LA doesn’t comply?
Mainly financial penalties
Failure to comply with key obligations
Proportional to the carbon footprint of the participant
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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
Smarter buying. Less carbon. A better deal.
Reaching out to schools
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Local Authorities need to tell their schools
about the CRC NOW!
Specially designed leaflet, explains:
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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
Smarter buying. Less carbon. A better deal.
Compliance is not enough
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The CRC must be complied with
The CRC is not optional (for those that qualify)
The CRC does have teeth but
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Could harm corporate reputations
Lead to financial losses
The key is to use the CRC to drive down energy use
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Simply complying misses the point of the CRC
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
Smarter buying. Less carbon. A better deal.
Obtaining the
necessary data
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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:
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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
Smarter buying. Less carbon. A better deal.
Recovering the costs
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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
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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
Smarter buying. Less carbon. A better deal.
Corporate and Schools
Comparison trend of CO2 emissions by Schools vs
Council Operations
17,500,000
17,000,000
CO2 (kg)
16,500,000
16,000,000
15,500,000
Total - Schools
Total - Others
15,000,000
14,500,000
14,000,000
1
2
3
Years
Smarter buying. Less carbon. A better deal.
Driving down
school emissions
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Schools could account for up to 60% of emissions
Experience shows that school emissions are increasing
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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
Smarter buying. Less carbon. A better deal.
Recycling uncertainty
Smarter buying. Less carbon. A better deal.
Carbon abatement strategy
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Good practice to develop and trial a carbon abatement strategy during the
Introductory phase
Why spend more buying
allowances when it would
be more beneficial to
invest in efficiency?
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Essential that a carbon abatement strategy is defined before the start of the
capped phases in April 2013
Smarter buying. Less carbon. A better deal.
Auction strategy
Smarter buying. Less carbon. A better deal.
The definition of AMR
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Important for qualification – electricity AMR
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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
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The meter needs to be capable of capturing consumption data on at least a half
hourly basis;
Gas AMR definition amended to reflect available technology
Voluntary AMR includes:
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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
Smarter buying. Less carbon. A better deal.
Schools AMR
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PfS announcement for display meters, going out to schools soon
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The display meters will
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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
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
Smarter buying. Less carbon. A better deal.
Strategic and operational practices to help local
authorities meet climate change and efficiency targets
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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
Smarter buying. Less carbon. A better deal.
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
Smarter buying. Less carbon. A better deal.
What reports are required
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Registration by 30th September 2010
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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)
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All mandatory and voluntary HH settled meters in 2008 and associated consumption (kWh) from 2008
calendar year
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
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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
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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
Smarter buying. Less carbon. A better deal.
Opportunities? Recycling Phases
Compliance
Year
Financial
Year
Purchase in
Year
(April)
1
2010-11
Reporting Only
2
2011-12
2011
3
2012-13
2012
4 (capped
phase)
2013-14
2013
Performance in
year
Bonus/Penalty
percentage
applied
N/A
N/A
2011
2010-11
10%
Footprint) &
annual report
2012
2011-12
20%
annual report
2013
2012-13
30%
Surrender in
Year (July)
Footprint &
annual report
Recycling
paid (Oct)
(capped phase
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%
Smarter buying. Less carbon. A better deal.
Opportunities - Early Action Metric AMR
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Supports other agendas
CRC early actions
? Reduces energy consumption
Reduces invoice administration time and budget management
Provides clear evidence for energy management activity
Smarter buying. Less carbon. A better deal.
HH consumption
Showing flood lighting at a training site
Smarter buying. Less carbon. A better deal.
Value of Data
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How much did this energy waste cost?
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£1,460.00
What did LFB resolve the problem?
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Fitted a timer inline with the photo cell to turn the lights off
when not required.
How much did that cost?
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£800.00
How long was the payback?
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0.54 years
Smarter buying. Less carbon. A better deal.
Variable Speed Drives in Leisure Centre
Week Total
Present (kWh)
Previous (kWh)
Saving
Move%
36,020
42,514
6,496 Kwh
-15.3
Smarter buying. Less carbon. A better deal.
Variable Speed Drives in Leisure Centres by LB
Haringey
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Ensure consumption is determined using only the
operating hours of the centre and not 24 hr usage.
26 units installed in 2 Leisure Centres at total cost of £ 44,607
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Anticipated savings of £ 43,860 / year projected
Energy saving £ 33,906
214 tCO2 (@£12) £2568 allowance saving p/a
Payback 1.25 years
Smarter buying. Less carbon. A better deal.
Working together
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Essential relationship between individual schools and its Local authority
Essential relationship between governors, headteachers, schools forum
Use some aspects as part of the curriculum
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Trading and carbon abatement
Consumption and graphs
Choosing technologies
Culture and behaviour
Smarter buying. Less carbon. A better deal.