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Lessons from Energy Efficiency Programmes

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Lessons from Energy Efficiency Programmes

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  1. Lessons from Energy Efficiency Programmes Asia Clean Energy Forum Manila, Philippines 18th June 2015 Tom Delay, CEO, The Carbon Trust

  2. Introduction to the Carbon Trust • An independent, expert partner of leading organisations around the world • We advisebusinesses, governments and the public sector on their opportunities in a sustainable, low carbon world • We measure and certify the environmental footprint of organisations, products and services • We help develop and deploy low carbon technologiesand solutions, from energy efficiency to renewable power • We have about 180 employees working around the world from offices in the UK, China and Mexico with representation in South Africa and Washington DC Our mission is to accelerate the move to a sustainable, low carbon economy

  3. UK energy efficiency programmes from 2005 Awareness Raising • Advertising campaigns on TV, radio, outdoor, press, digital and search • Direct marketing, events and PR Remote advice • Supported up to 50,000 SMEs per year • Online tools, publications and advice line • Our publication library had an annual demand of over 250,000 publications Energy audits and strategic advice • Trained and accredited team of 400 engineers • Delivered up to 5,000 on site surveys • Over 20% savings on energy bills identified on average Loans scheme • Disbursed over £160m of interest free loans to SMEs • Backed up by over 10,000 Energy Savings Assessments

  4. Programme delivered £5.5bn cost savings and over 60mt CO2 reductions Net present value of costs and benefits for 2009/10, £m 716 432 (32) Cost of “unlocking” energy efficiency < $10 per tonne CO2 (252) Technical assistance Capital investment Total cost saving Lifetime savings

  5. But needed commitment, targeted advice and flexible finance • Weak business drivers limit organisational commitment • Energy is not relevant to “core business” • Lack of sustained senior level commitment • Lack of an identified solution prevents action • Perceived risk of new technologies • High transition costs • Lack of funding prevents investment • Measures may be NPV positive but with paybacks of over 2 years fail to meet company investment criteria • Awareness raising • Technical advice and support • Access to finance

  6. Now working on a number of international energy efficiency projects Private Sector Energy Efficiency Programme, South Africa Deployment of LED lighting, Malaysia Energy Efficiency loans, awareness raising and advice programme, Mexico

  7. The PSEE programme offers support to businesses in South Africa Sponsorship Funding Delivery Support depending on energy spend • Remote Advice and guidance provided by: Telephone, Website, Publications, Events & workshops • Subsidised energy surveys and implementation support • Strategic energy consulting support • Allocated account manager Network of local consultants

  8. Accelerating the deployment of LED lighting in Malaysia Funding Delivery Applying proven approaches to accelerate the deployment of cost effective LED lighting solutions, working with • Customers – demonstrating the business case to private and public sector organisations through trade associations • Suppliers – promoting locally manufactured, high quality LED lighting products (a key focus for economic growth in Malaysia) • Intermediaries – delivering training to energy managers and M&E contractors on the identification and implementation of LED solutions

  9. Large opportunity across all markets with many common challenges The opportunity • Significant savings with short pay-backs available in all markets we have worked in • Particular local circumstances can present additional opportunities or increased motivations, e.g: • Regeneration projects • Security of supply concerns The challenges • All of the challenges seen in the UK market appear to exist in other markets, often exacerbated by local circumstances, e.g: • Low energy costs • Low quality of suppliers • Lack or inadequacy of regulation, e.g. feed-in framework not working properly

  10. Considerations for effective energy efficiency programmes • All barriers need to be tackled simultaneously to be effective – provision of finance alone is not enough • Up-skilling and quality control of local supplier and consultant base is key • Programme needs to be long enough to see projects through to implementation (~4-5 years minimum) • Awareness raising and marketing activity is crucial to achieve uptake