CARBON REDUCTION COMMITMENT
reading (“AMR”). This metric applies where voluntary meters have been installed that are over and above the mandatory HH meters any CRC participant will have. This metric is reflected as a percentage, so the more emissions covered by this technology installed, the better it scores. IMServ is the UK’s largest independent provider of AMR services and collects data from over a quarter of a million data points every night of the year.
The second is the percentage of annual emissions (CRC declared) which are covered by The Carbon Trust Standard (“CTS”). This scheme covers a wider scope of emissions, not just those from Energy Consumption and can only be achieved if you have reduced your carbon emissions over the last 3 years.
Organisations will need to buy allowances for each tonne of carbon they expect to emit during each year of the CRC. In the introductory phase (2010 to 2013) these will be sold at a fixed price of £12/tonne CO2
.
There will be no sale of allowances in the first year of the CRC, instead there will be a sale of allowances in April 2011 to cover actual emissions from April 2011- March 2012, the first year being an “information” exercise.
Some organisations may feel that this is a stealth tax by the Government, and at £12/tonne, IMServ estimates that the cost to businesses will be in excess of £1.4 billion in April 2011. However, it is important not to consider the CRC as a stealth tax because the revenues are recycled to those businesses which improve their carbon footprint, encouraging those funds to be spent on lowering emissions. In addition, the cost of the energy which generates a tonne of CO2
is in excess of £200.00. Therefore any scheme which helps to reduce both carbon and energy spend is to be welcomed, particularly after a period of recession.
Some sectors, such as Retailers, have actively embraced the CRC early on while other sectors such as Manufacturing, have been slower to respond. We are now witnessing a significant shift as businesses in general start to put carbon reduction strategies into motion. Certainly, we have seen a surge in demand for our services in recent months. Accurately recording data is a significant part of the CRC scheme, and we are currently experiencing a massive increase in orders for non half hourly automated meters (AMRs) as firms scramble to be ready in time.
In an average month, IMServ installs c3,500 smart meters as part of our Business SMART service, however in March
2010 this figure has doubled to c7,000 units planned for install and we have already taken orders for a further 6,000 units in April. We expect this level of demand will continue into October this year and this is a strong reflection that firms understand the need to take this legislation seriously.
Another product that is proving popular with facilities managers to help meet the challenge of the CRC is our new Mini-BMS (Building Management System) which is a brand new way to manage energy. Mini-BMS provides the ultimate level of energy control, enabling Energy Management schemes to be rolled out remotely, meaning that on-site staff focus on their core activities, instead of trying to manage their building. Of course, the BMS also removes the problems posed by staff that leave lights on at the end of the working day or forget to turn the air-con off at night, arguably the biggest contributors to energy wastage. We recently rolled out this new technology for a group of retail sites in the UK and as a result we were able to demonstrate energy savings on lighting of 9% and an incredible 46% on Air Conditioning. The total energy saving for this scheme was sufficient to generate a business case payback of less than 15 months. If we also consider that technologies qualify for the Carbon Trust Interest Free Loan Scheme and Enhanced Capital Allowance (“ECA”) tax incentives, the figures quickly start to prove that this technology will provide the ultimate level of control for businesses determined to control energy and reduce their carbon footprint.
But what about all the data that tools such as Building Management Systems and smart meters generate? This presents an enormous challenge in itself and its something many of our customers ask us to assist them with. They need access to the relevant information quickly and easily in a format that can be tailored according to the internal audience – a vital aspect considering carbon management is now a boardroom issue and needs to be communicated effectively across organisations, not just to the Energy Management Professional. Whilst this presents a daunting task in itself, carrying strong penalties if incorrectly executed (under CRCEES), what can cause more pressure is figuring out the best way of communicating these measures to the whole company to ensure that all staff are actively engaged; which is not something that all facilities managers necessarily have had previous experience of. This Energy Communication Strategy
will now prove fundamental in ensuring that the energy saving measures put in place are understood by all employees, so that they realise the importance of behavioral change in achieving carbon and energy reduction.
ABOUT INVENSYS OPERATIONS MANAGEMENT
Invensys Operations Management, a division of Invensys, is a leading provider of automation and information technology, systems, software solutions, services and consulting to the global manufacturing and infrastructure industries. Headquartered in Plano, Texas, its solutions are used by more than 40,000 clients around the world in more than 200,000 plants and facilities. Invensys Operations Management’s offerings are delivered under several prominent industry brands, including Action Instruments, ArchestrA, Avantis, Barber-Colman, Chessell, Continental, Eurotherm, Foxboro, IMServ, InFusion, SimSci-Esscor, Triconex and Wonderware. The company’s approximately 9,000 employees and its global partner ecosystem integrate these products and services to help clients collaborate across systems and enterprises in real time, extracting critical data to make faster, better decisions and synchronize their operations from the plant floor to the executive offices, aligning production goals with business objectives. To learn more about Invensys Operations Management, visit iom.invensys.com. Invensys plc (www.invensys.com) is headquartered in London and is listed on the London Stock Exchange (ISYS.L), with approximately 20,000 employees working in 50 countries.
ABOUT IMSERV
IMServ (www.imserv.com), part of Invensys Operations Management, was founded in 1992 and works with companies such as Boots, Thames Valley Police, BT and Tesco to give clients better visibility and control over their energy usage and spend. IMServ is a leader in providing world-class carbon & energy solutions that help organisations in all sectors to save energy, reduce costs, control carbon and be greener. IMServ delivers complete end-to-end outsourced solutions as well as individual services and consultancy across three key areas — Data, Insight and Carbon & Energy Saving. Armed with more detailed, accurate and up-to-date information on their energy use, businesses can take more informed steps to manage their energy costs and carbon footprint.
SUSTAINABLE FM | APRIL 2010
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