Effective Energy _ Carbon Reduct

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					Effective Energy & Carbon Reduction
  EAUC 12th Annual Conference - 31st of March 2008

          Kevin McDonald & Paul Smyth - Salix
            David Stutchfield – St Andrews
  Our mission is to work with the public sector to reduce carbon
      emissions through investment in energy efficiency and
                     renewable technologies.
                  Salix Finance – Agenda

•   Introduction to Salix Finance

•   Update on current HEI & FE activities

•   HEI activities – new opportunities from April 08

•   Recent improvements to the fund

•   St Andrews - A Client’s perspective

•   Questions?
         Salix Finance




Introduction to Salix Finance
              Salix Finance – who are we?

•   Independent not-for-profit company

•   Set up by the Carbon Trust in 2004

•   Work only with public sector bodies

•   To reduce energy costs and carbon emissions

•   Show leadership in tackling climate change
           Salix Finance – what do we do?

• Stimulate investment

• Using ring-fenced funds

• Recycle all projected savings

• Focus on cost-effective projects
  with high CO2 reduction impact

• Match funding – typically £250K

• Initial fund spent over 2 years

• Reduce energy bills

• Make capital go twice as far
       Salix Finance - types of technology

• The following lists the main types of technology in the fund
   – BEMS
   – Boiler replacements and controls
   – Cooling and heating projects including controls
   – Insulation Building Fabric
   – Lighting upgrades and controls
   – Motors and motor controls
   – Office equipment improvements and network PC
     management
   – Renewables
   – Swimming pool covers and controls
   – Ventilation
   – Voltage reduction
Salix Finance – All Clients projects breakdown

                        Commissioned & In Progress Projects as a % - 31st Oct
                                                           Air Compressor
                                 Boiler Controls                                                         Heat - Electric to Gas
                                                                 1%
                                       5%                                                                         7%
    Voltage reduction                                                            BEMS
           6%                                                                     6%
    Ventilation                                                                                          Heat - Pipework insulation
        1%                                                                                                          3%
                                                                                                                 Heat - Controls
    Motor controls                                                                                                     4%
         8%
                                                                                                                  Heat - Other projects
                                                                                                                           5%
Lighting - discrete controls
             8%
                                                                                                               Hot water - Point of use
                                                                                                                         3%
         Lighting upgrades
                10%
                                                                                                              Boiler Replacements
                         Swimming pool covers             CHP                         Insulation                       9%
                                3%                        1%                             19%
              BEMS                           Heat - Electric to Gas         Heat - Pipework insulation   Heat - Controls
              Heat - Other projects          Hot water - Point of use       Boiler Replacements          Insulation
              CHP                            Swimming pool covers           Lighting upgrades            Lighting - discrete controls
              Motor controls                 Ventilation                    Voltage reduction            Boiler Controls
              Air Compressor
Salix Finance – All clients projects breakdown


         Commissioned & In Progress Projects as a % - 31st Oct
                                                         Wall caldding
                                                              1%
                                                                           Draught proofing
                            Double / secondary glazing                          15%
     Cavity & Loft                      8%
        13%




                                                                                                              Cavity
                                                                                                               28%




                     Loft            Insulation Projects
                                   Insulation Projects
                     35%

      Draught proofing   Cavity      Loft   Cavity & Loft    Double / secondary glazing       Wall caldding
            Salix Finance - project criteria

• Projects must deliver both CO2 & revenue benefits

• Two project compliance criteria
   – 5 year payback period and £100/tCO2
   – 7.5 year payback period and £50/tCO2

• Energy efficiency projects
   – As documented in the Salix Project tool
   – Or approval through suitable demonstration project

• CHP and renewable energy technologies
   – Include a feasibility study carried out according to a recognised
     methodology
             Salix Finance




Update on current HEI & FE activities
Salix Finance - working with Higher Education

  Initial Pilot consisted of 8 Universities:

  University          Salix Fund            Total Fund
  Cambridge
  Kings College
  Leeds Met
  UWE

  Edinburgh
  Glasgow
  St Andrews
  Stirling
  Total                £2,079K               £4,171K

       Two clients have now increased funding size
Salix Finance - working with Higher Education

 Projects undertaken – March 08 snap shot

 Commissioned & In Progress
 Number of HEIs          -                    8
 Number of projects      -                   93
 Total value of projects -             £ 1,870K

 Projected savings
 Annual financial savings -            £    515K
 Lifetime Energy Saving -              £ 4,389K
 Annual CO2 saved         -               3,417T
 Total CO2 saved          -              29,000T

 Average payback              -       3.63 years
       Average fund age is only 12 months, all clients are
                 ahead or in line with schedule
Salix Finance - working with Higher Education

  HEI New Phase I clients will be

  University      Salix Fund        Total Fund
  Durham
  Exeter
  Newcastle
  The Open
  Portsmouth
  Sheffield
  York
  Aberdeen
  Abertay
  Napier
  Strathclyde
  Total            £2,219K          £4,438K
Salix Finance - working with FE Colleges LSC

  Salix / LSC Pilot
 Assessed applications
 Number of Colleges            -              230
 Number of projects            -            1,248
 Total value of projects       -        £ 22,721K
 Projected savings
 Annual financial savings -             £ 6,441K
 Lifetime Energy Saving -               £ 49,208K
 Annual CO2 saved         -              47,047 T
 Lifetime CO2 saved       -             359,457 T

 Average payback               -        3.52 years
  Grant payments to be made in April 08, projects to be completed
                        by September 08
            Salix Finance




HEI activities – new opportunities
            from April 08
    SALIX Finance – new HEI opportunities

•   New Salix Funds are now confirmed - DEFRA press release
    13th of March

•   30 Million over three years

•   10 Million earmarked for HEI    (2 years x 5)

•   Intention is that these funds will be used in conjunction with
    HEFCE Revolving Green Fund – Institutional Fund

•   Time line for 1st round of applications anticipated to be July
    08 closing date and September 08 award
         The HEFCE – SALIX Partnership

Two strands to the funding with an annual application process

•   An institutional small projects fund
    - Size £20M
    - This will use the traditional Salix model with HEFCE
    providing the match funding on behalf of the HEI

•   A transformational fund
    - Size £10M
    - The purpose is to tackle large projects that will transform
    the institutions energy consumption and reduce its
    emissions
      The Institutional Small Projects Fund

•   HEFCE will match Salix’s funding on behalf of each HEI &
    fund size will be determined on an individual application
    basis

•   HEI’s will be required to contribute a minimum of 25% of
    their fund value but they are encouraged to exceed this and
    those that do so will be preferred in the selection process

•   HEI’s will be able to use their contribution to fund projects
    that fall outside Salix’s criteria but still give savings

          Closing date of Consultation is 21st of April 08
     The Institutional Small Projects Fund –
              Assessment Criteria
    Applications to the fund will be assessed using Salix’s
    current assessment process. Considering the following

•   The number of ‘ready to go’ projects at the time of the
    application

•   The presence of energy management expertise and
    capability to manage the fund

•   The level of financial contribution from the institution
           Salix Finance




Recent improvements to the fund
    Changes over the last 12 months - New
                 structure
Starting in February 07 we brought our client facing activities in-
house and set up a team of Client Relationship Managers. The
aim was to take a more pro-active approach to working with
clients. This has resulted in:

• More time being spent with clients on-site and in group
  meetings
• Improved ‘key point of contact’ communication
• Support in accelerating project implementation and carbon
  delivery
• Better sharing of information and technology
• Two way feedback helping us to continue to improve the
  business model
     Changes over the last 12 months - The
                   application process

To support recruitment of new clients we have appointed a
Business Development Manager. We have also worked hard on
the application process resulting in:

• Hands-on support to explain the Fund and support the
application process

• A revised application document with only 7 pages. Previously it
was 30 pages

• A compliance tool complete with supporting technical notes that
logs projects and provides both financial and carbon savings in a
consistent format

• Sharing of approximately 1000 projects showing clients what is
working in their sector
Changes over the last 12 months - Making the
                  model work for you

Making use of the scheme management charge (SMC)

For each project undertaken, a client can exercise a right to
take up to 15% of the project spend as a scheme management
charge which can then be used for the following options:

•   To fund resource to run the Salix programme
•   To support consultancy investigations to establish new Salix
    projects
•   To pay for investment in M&T
•   To pay for Infrared Thermography technology
•   To help make a new non-compliant project compliant, based
    on a 20% non-repayable contribution option
            Salix Finance




St Andrews - A Client’s perspective
Skills for Sustainability
Exeter



Effective Energy and Carbon Reduction

David Stutchfield
Energy Officer
University of St Andrews




                                        25
                St Andrews University Overview



• Voted Best University in Scotland 2007 (source - Sunday
  Times UK University Guide table 2007)
• 1st place in Scotland People and Planet SD League table 2007
• 6,808 students (UG &PG)
• 1,884 staff
• £120M annual turnover
• 229,792 m2 building stock
• 180 buildings from 1410AD
               Measure your footprint - HECMP
               2007 UNIVERSITY CARBON FOOTPRINT - 33,000 tonnes
               (Note - does not include construction w aste; emboddied carbon, student travel etc)




             procurement

             30.6%
                                                                                           energy
                                                                                           waste
                                                                                           water use
                                                               energy
                                                                                           staff business mileage
             fuel use                                          51.6%
                                                                                           fuel use
             0.3%
                                                                                           procurement

    staff business mileage
    15.3%
                             w ater use    w aste
                             0.2%          2.0%
                       Utilities Strategy
 4 Utilities Workstreams - Ultimate aim
to be carbon neutral for energy

 Information and tools (M&T and AMR
systems)
 Behaviour (Awareness -
Interhall Energy Competion,
Psychology project)
 Investment (Salix)
 Renewables
 Higher Education Carbon Managementbodies
            Effective use of the advice Program
 Partnership Agreement with Carbon Trust – gives access to significant
consultancy of Site Surveys for carbon reduction each year.
      Energy Reduction in buildings
      Renewable Resources
 Design Advice on new buildings from Carbon Trust
 Green Fleet / Travel Plan Review from Energy Saving Trust
 Low Carbon Technologies grants from Energy Saving Trust and Low
Carbon Buildings Phase 2 (GSHP, Solar PV & Thermal etc)
 Big Splash Water Saving Review from Envirowise
 Salix funding for specific projects




                                                                   29
                  Effective Use of Salix Fund



• Develop program of works based on HECMP or Carbon Trust
  Site Survey reports
• Work out what is the maximum the University can afford to
  match fund, and what is the maximum number of projects
  you have time to implement.
• With Salix Funding of £524K, and a total of £1,068K to be
  spent over a two year period, St Andrews has the largest fund
  value of all the pilot universities.
                     Operation of Salix Fund



•   Examples of work undertaken
•   Loft Insulation
•   Pipe insulation
•   Window draught sealing
•   Refrigeration motor controls
       Utilities – Renewable Energy

               Solar thermal




Wind


                                Geothermal




                          Gas and Biomass CHP
Thank
You

 www.st-andrews.ac.uk/environment



                                    33
Salix Finance




Questions?
25 Southampton Buildings, London WC2A 1AL
       t: 020 3043 8800     f: 020 3043 8799
  info@salixfinance.co.uk   www.salixfinance.co.uk
Salix Finance - Maintaining the Fund


                              Available investment per year
                                      Typical Fund Value - £200K

     £250


     £200

                £100       £100
     £150
£K




     £100

                £100       £100
      £50


       £0
            1          2          3        4       5          6    7   8   9   10

                                                       Year
                                                    Salix   HE
Salix Finance - Maintaining the Fund

                             Available investment per year
                                       Typical Fund Value - £200K

     £300

     £250
                           £40
     £200
£K




                £100       £100
     £150

                                  £8            £8      £8          £8
     £100
                £100       £100 £40             £40    £40        £40         £8
     £50
                                  £40           £40    £40        £40         £40
      £0
            1          2          3             4        5          6         7        8   9   10

                                                             Year
                                        Salix    HE   Savings 1   Savings 2    Savings 3
 Salix Finance - Maintaining the Fund

                              Available investment per year
                                    Typical Fund Value - £200K

     £300

     £250
                             £40
     £200
£K




                £100         £100
     £150
                                                                £25
                                                                            £30                           £26
                                                        £21     £21                   £28     £24
     £100                                   £18         £18     £18         £25               £28         £24
                                    £8      £8           £8      £8                   £30
                                                                            £21                           £28
                £100         £100 £40       £40         £40     £40         £18               £30
      £50                                                                    £8       £25
                                                                                              £25         £30
                                    £40     £40         £40     £40         £40       £21
                                                                                      £18     £21         £25
       £0
            1            2          3           4        5          6        7          8       9          10

                                                             Year

                 Salix              HE              Savings 1   Savings 2         Savings 3   Savings 4
                 Savings 5          Savings 6       Savings 7   Savings 8         Savings 9   Savings 10
Salix Finance - Maintaining the Fund

                    £400k Fund 75% Recycling - 2 Year Six Monthly Tranches

                                       Salix   LA   Loan repayments
                                                                      Must reinvest min 60% of annual
          140
                                                                                repayments

          120


          100


          80
  £000s




          60


          40


          20


           0
                1      2       3       4        5        6        7         8      9      10
                                       Six Month Tranche Number

				
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