Energy Supplier Obligation experiences Dublin
Lokalenergi: -Electricity sales -Consultancy services All customers segments All types of energy Energy labelling of buildings National auditor of building energy labels ESCO projects Management systems Research within energy optimization
The energy saving potential The world society
Policy tools INFORMATIVE Grass root energy activities EU labelling of appliances Labelling of buildings EMS - 50001 Utility obligation (audits, information) Electricity Saving Trust Public sector activities EU norms for appliances Utility obligation (subsidy) Building codes Taxes NORMATIVE ECONOMIC
Danish EE Scheme Business case for supply companies Gross margins on electricty sale (spot): 0,5 EUR cent/kwh Gross margins on energy saving activities: 3-7 EUR cent/kwh
Lessons learnt Danish EE Scheme There is a need for at kickstart of the energy saving market the iceberg Screening can lead to introduction of monitoring EMS among companies that would not have chosen that pathway Utility with relation to company with EMS can help the with grants or selling of energy savings and thereby reduce payback time Must utilities in DK offer monitoring of energy consumptions that are needed in EMS systems Utilities can be the door-opener for EMS 50001 Utilities with obligations ensures a stable organisation
Danish EE Scheme Lessons learnt Additional/free riders can be minimized Obligations on energy companies is a cost effective instrument Fulfilment of the EE target is secured Market for ESCOs is developing through collaboration with external actors
Cost effectiveness Source: Danish Energy Agency, 2009
Looking ahead PSO Direct subsidies to RE production and energy savings /kwh 80 70 60 50 40 30 20 10 0 Energibesparelser Landmøller efter år 2010 Havmøller Horns rev Biomasse el Horns rev II Biomasse varme Husstandsmøller Nysted II Biogas Anholt
Conclusions Energy saving obligations for energy utilities Is an important element in the Danish energy saving strategy Provides necessary help to implementation of savings in existing buildings and private enterprises Is a secure way to finance energy savings activities and establishing a market for EE
Succes due to Focus from top levels on the obligation Real interest from association and involved companies, they accept the obligation Real involvement from the companies, sees the obligation as a business opportunity Stable organisation Resources allocated as the involved companies are allowed to cover the cost via a levy Cooporation with external actors, more than 1000 in DK Internal project groups, networking Concrete results, used as promotion with in the sector Communication
Results of the obligation 115 mio. euro collected as a levy, by the grid companies Savings: 6.1 PJ = 1700 GWh (1 year) 16,916 GWh (during lifetime of savings ) 200 mio. Euro saved 1st year 2 billions Euro saved energy cost lifetime (average energy price 0.1 Euro cent kwh) Payback - business 1-3 year - private/public 5-10 year 1.1 billions Euro investment among the customers Manufacture Supplier/contractor Installers Consultants
How to turn EFF into a business
How does the customer see a utilit
How does the customer see a utilit Is this always creating a positive image and long lasting customer relations? NO!
Energy freak transformation Energy freak transformation Spin off Costumer focus area Education Planned maintenance Management Time schedules Energy freak focus area Energy Energy Energy freak focus area Planned maintenance Management Eduvation Time schedules Production Sales figures Quality Economy Value of energy saving 1 Production Sales figures Value of energy saving and NEBS 2.5 Costumer focus area Quality Economy Environment Spin off
The Danish assosiation of engineers has made a survey in 2006 it concludes: In industry and production companies in DK there is the following saving potentials: 10-15% with a pay back up to 4 year 40% with a pay back up to 6-7 years The energyprice equals 50US dollars pr. barrel, the survey is without the value of NEBs. The survey concludes that the main reason for not implementing is that the energy efficiency proposals does not fulfil the requirements of the industry sector. However research of individuel projects points out that the value of NEBs often is in the size of 2.5 to 3 times higher than the value of the energy efficiency projects So the above potentials is transformed into this: 10-15% with a pay back up 1.6 year 40% with a pay back up to 2.4-2.8 years If the NEB value is eg@lokalenergi.dk set to 2.5
Lundbeck, pharmaceutical company Skøn over potentielle elbesparelser i % This project was about: Reduce pressure in ventilation systems that supplies laboratories and fume cupboards Regulate ventilation airflows in animal facilities based on occupancy Replace traditional lightning with LED light where possible Installation of preheater and economizer on boiler for steam generation Regulation of vacuum pumps with frequency converters Lokalenergi was responsible for energy calculations, project engineering, overall project management and economy
Lundbeck, pharmaceutical company Lundbeck obtained: Reduction of energy costs with 10,18% obtained within a year! - Or : 10,18% of 50.000 MWh, or 5.000 MWh Pay back times below 3 years. Most of the projects below 2 years.
Vederlag for energirådgivning: 0 kr. NEBs Tilskud til gennemførte energibesparelser: 0 kr. Vederlag for energirådgivning: timehonorar Tilskud til gennemførte energibesparelser: eks. 300 kr./mwh
Production of liquid gasses Temperature of the cooling water influence on the energy consumption Systematic metering, indicated rising temperature over time, due to smudge of the heat exchanger. In spite of chemical treatment of the cooling water. Investigation suggested an ozone unit together with a sand filter Temperature decreased with 1-2 degrees Energy saving: 153 MWh/year Energy-only-payback: 3.6 years Energy+chemical+reduced-labour-costspayback: 0.5 year 21
Competitiveness
Optimal diffuser design in fish farm Traditional Trout Farm Model Trout Farm Environment Restricted feed quotas and restriction on water intake from the water course Increase in production 2.5 higher production with same water intake