Implementing Carbon Reduction Without Impacting Working Capital. Presented by Dylan Crompton

Transcription

1 Implementing Carbon Reduction Without Impacting Working Capital Presented by Dylan Crompton

2 Evolution of a Carbon Strategy Proactive organisations are on a journey to reduce carbon emissions.

3 Marginal Abatement Cost (MAC) Curve Provides a route map to achieve your carbon reduction target.

4 Profiles of organisations we meet No Route Map Route Map Mature Super-Mature May or May Not Have a Carbon Have a Carbon Have a Carbon have a Carbon Target and a specific Target and a specific Target and a specific Target but no action plan action plan action plan specific action plan Many high impact Have implemented Have implemented Unknown set of projects still to be high impact projects all relevant projects measures to be implemented done Also need to Need to unlock further potential Have no need for any further Need advice on how implement longer from longer payback reductions to plan and implement their carbon strategy payback measures to achieve overall target measures to achieve overall target Focus on maintaining performance

5 What Happens Next Directly Observed Investment case put forward for development of a route map, high impact projects and/or longer term payback projects Capex granted and organisation proceeds to next step Or capex declined due to: Lack of high level commitment Prioritisation of funds elsewhere Insufficient time/knowledge to implement Uncertain outcomes Business case in now outside company metrics Customer Landscape Improve profitability, shareholder value Constraints on capex and opex expenditure Drive to improve working capital Preserve credit rating Investment required in ageing infrastructure Increasing Legislation How do you overcome these significant barriers within this landscape?

6 Energy Performance Partnerships Matches payment profile with benefits realisation thereby improving working capital.

7 The Home Office Case Study Programme includes 350 sites under the greenest government ever initiative Investment repaid through innovative GainShare mechanism 13% reduction in consumption, 30% more than the government target In harnessing the best private sector practice and bringing in fresh ideas we can deliver real change. The contract will go a long way to helping the Governments energy efficiency drive. We all need to find ways to work more smartly. I believe this contract will deliver real savings for the taxpayer while helping protect the environment Significant CO2 emission reduction Helping the customer save 1.3million annually Energy Costs ( ) 500, , ,000 BG Contract Started Energy Engineering Commenced BG Installed Energy Savings Projects Completed EPC Savings Against 09/10 Baseline 350, , , ,000 Actual Costs 150, ,000 50,000 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

8 A Local Health Board Case Study 4 Acute Hospitals Total benefits of > 1m per annum with British Gas guaranteeing savings > 750k per annum for the next 10 years British Gas takes care of its area of expertise; energy services, allowing us to focus on our expertise; patient care. Meanwhile, we gain 1,058,000 a year. ~26% energy consumption saving Significant asset renewal programme Broad range of technical solutions including CHP, lighting, BMS, STOR and PV. Sensitive to needs of a critical environment. CO2 emission reduction of ~5,500 tonnes p.a.

9 Making energy more affordable Thank You