CARBON REDUCTION COMMITMENT
organisations meet their obligations through an energy use strategy that delivers guaranteed energy savings that outweigh the cost of implementation. The EPG will allow organisations to deploy decentralised energy systems such as solar photovoltaics without the need for any up- front investment. Should the cost savings fail to materialise, organisations will not be obliged to pay back the up-front costs. The service has been based upon a successful pilot carried out in public sector buildings for the Building Energy Efficiency Programme (BEEP) on behalf of the London Development Agency. Here E.ON’s Sustainable Energy business is working together with Self Energy, to manage the entire process of undertaking energy audits, conducting behaviour change programmes and providing the tools and technologies required to reduce energy consumption. E.ON has developed a complete managed service to support facilities managers and their customers in all aspects of CRC, from administration and data management to carbon trading and advice.
CAPITAL COMMITMENT
Through the Clinton Climate Initiative (CCI) – part of the William J Clinton Foundation – London is the first city in the world to have launched a framework of
THE SELF-FUNDING SOLUTION
The Energy Performance Guarantee (EPG) delivers a comprehensive and self- contained programme that allows organisations to meet their energy and carbon reduction targets without the need for additional capital investment. Operated by an independent Energy Service Company (ESCo), the EPG is self financed by the guaranteed savings it has been created to deliver.
The EPG is effectively an agreement between the customer and the ESCo that allows the improvement of the energy
King’s College, London
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approved energy service companies. This will help to cut through red tape and allow public sector organisations to retrofit their buildings with energy efficiency measures more easily. Under the BEEP initiative, on which E.ON and Self Energy sit as approved suppliers, hospitals, colleges and councils across the UK will be helped to cut energy use and save millions on their fuel bills. It is estimated that if all the public sector buildings in London alone deployed this model, it would deliver a £500 million saving to the public purse. Eight per cent of London’s carbon emissions – 3.5 million tonnes annually – come from public sector buildings, so there is huge potential for delivering massive cuts through this programme in London and on a nationwide scale. King’s College, London, in early work with Self Energy, was advised to install a 1MW trigeneration to provide heat, power and cooling and an on-site renewables system to serve several of the College’s campuses, including the Strand in central London. It is already enjoying the benefits of reduced carbon emissions and energy bills reinforced with the security over future energy needs.
efficiency of buildings and facilities. The ESCo guarantees that the improvements it implements will generate sufficient savings to pay for the project. And all additional savings gained after the contract ends accrue solely to the customer. The EPG puts businesses in greater control of energy costs and emissions and releases monies that can be used elsewhere in the organisation. E.ON’s Sustainable Energy business is able to manage the entire EPG process and support organisations included in the scheme by undertaking audits, conducting behaviour change programmes and providing the tools and technologies required to reduce energy consumption. E.ON and Self Energy believe that working closely with facilities mangers is key to being successful in energy and carbon reduction schemes. Facilities managers are familiar with the buildings and their plant and currently hold considerable data. When this is added to our specialisms in energy efficiency and low / zero carbon generation, cost savings opportunities are easier to find.
FUTURE CHALLENGES
The CRC scheme is part of a wider shift toward more sustainable ways of operating. For organisations both large and small, energy use will remain high on the boardroom agenda. Until now the regulators’ courtship with carbon reduction has been a long and drawn out process. Now the commitment has been made, it is up to all parties to work together to ensure the best possible outcome for their long-term strategy. Businesses liable under the new CRC regulations will need to act sooner rather than later.
www.eonenergy.com/sustainable
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