How to approach GHG reporting and track the success of your carbon saving projects Timothy J Holman Solutions Director Enterprise Energy and Carbon Management Solutions www.teamenergy.com Agenda How to approach GHG reporting and track the success of your carbon saving projects • • • • • The Journey... What is Greenhouse Gas Reporting? A Carbon Reduction Programme Project Tracking Measurement & Verification Enterprise Energy and Carbon Management Solutions www.teamenergy.com Who are TEAM? n Sigma Integrated Energy and Carbon Management Software n Bulk Bill Checker n CRC Module n DEC Module n Maintenance & Support n Helpdesk n Hosted Services n Energy Database n Billing and meter data collection n Bill validation and cost recoveries n Energy Analysis n Waste Detection n Financial and Energy Reporting n Web Access Enterprise Energy and Carbon Management Solutions n Flexible Energy Management Service n Energy Surveys n Energy Policy and Strategy n Awareness and Training n DECs, EPCs, A/C Inspections n Carbon Reduction Commitment n Carbon Footprinting www.teamenergy.com Customer / Projects… Sample Enterprise Energy and Carbon Management Solutions www.teamenergy.com The Journey… ‘by 2020, we'll have reduced our operational carbon emissions by 30% absolute and 65 % relative, compared with 2005’ ‘40% reductions in CO2 levels by 2020’ ‘the world’s most sustainable major retailer by 2015’ ‘set a carbon reduction target of 50% on 1990 levels by 2025’ 20% 40% Energy / Carbon / Cost 5% ‘reduce carbon intensity of our global business by 80 per cent by 2020’ Years M&T software can underpin your journey Enterprise Energy and Carbon Management Solutions www.teamenergy.com Greenhouse Gas (GHG) Reporting • What is it? – Based on Greenhouse Gas (GHG) Protocol / ISO14064 – Kyoto greenhouse gases • Defined in section 92 of the UK Climate Change Act 2008: – – – – – – Carbon Dioxide (CO2) Methane (CH4) Nitrous Oxide (N2O) Hydrofluorocarbons (HFCS) Perfluorocarbons (PFCS) Sulphur Hexafluoride (SF6) – Categorise all emissions into Scopes 1, 2 and 3 – Creation of an organisational “Carbon Footprint” Enterprise Energy and Carbon Management Solutions www.teamenergy.com Greenhouse Gas (GHG) Reporting • Emission Scopes: Scope 1 Scope 2 Scope 3 Direct Emissions Indirect Emissions Other Emissions Enterprise Energy and Carbon Management Solutions www.teamenergy.com Greenhouse Gas (GHG) Reporting • Why? – New legislation for Listed Companies • Global Emissions not just UK • All GHG not just CO2 • Scope 1 and 2 only – Corporate Social Responsibility Reporting Enterprise Energy and Carbon Management Solutions www.teamenergy.com Data available for Energy Management Display Energy Certificates Data loggers Radio Modem GSM & SMS Paper Bills EDI Electronic Bills Mains borne Signalling Other data providers i.e. MOP, DC, DA Finance, Property Databases Spreadsheets Self read Enterprise Energy and Carbon Management Solutions Building Energy Management Systems www.teamenergy.com Additional Data available for GHG Reporting Transport Records Refrigerant Emissions F-Gas Inspection Reports Waste Transfer Notes Overseas Property Databases Other Overseas data Spreadsheets Telemetry Systems Manual Data Input Enterprise Energy and Carbon Management Solutions www.teamenergy.com Global Data Captures & GHG Emissions Country 1 – United Kingdom Consumption Data for each GHG Source Transport Sites SCOPE 1 Sources SCOPE 2 Sources SCOPE 3 Sources Total CO2 SCOPE 1 Total CO2 SCOPE 2 Total CO2 SCOPE 3 TEAM Sigma Emissions Factors Country 1 - Total Footprint Enterprise Energy and Carbon Management Solutions www.teamenergy.com Global Data Captures & GHG Emissions Country 1 – United Kingdom Country 2 – Spain Consumption Data Consumption for each GHGData Source for each GHG Source Sites Transport TEAM Sigma Sites SCOPE 1 Sources SCOPE 1 Sources Total CO2 SCOPE 1 CO2 Total SCOPE 1 Country 1 - Total Footprint Global CO2 Country 2 - Total Footprint SCOPE 1 SCOPE 2 Sources SCOPE 2 Sources SCOPE 3 Sources SCOPE 3 Sources Total CO2 SCOPE 2 CO2 Total SCOPE 2 Total CO2 SCOPE 3 CO2 Total SCOPE 3 Global CO2 SCOPE 2 Enterprise Energy and Carbon Management Solutions Emissions Factors Global Footprint Global CO2 SCOPE 3 www.teamenergy.com TEAM Sigma GHG Reporting Module • New GHG Reporting Module for TEAM Sigma • Records of all consumption data and reporting on the basis of tCO2e • Calculates your total Carbon Footprint using: – Greenhouse Gas (GHG) Protocol Scopes 1, 2 and 3 – Individual sources and individual sites • Data for Annual Carbon Footprint Reports (to comply with UK legislation/practice) Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma GHG Reporting Module Enterprise Energy and Carbon Management Solutions www.teamenergy.com GHG Reporting Metrics • Choose appropriate carbon performance metrics, KPIs or Intensity Ratio: – tonnes CO2/£ turnover – tCO2 /m2 of floor area – tCO2 /full time equivalent staff – tCO2 /production quantity – tCO2 /mileage, etc. • Ability to track CO2 emissions throughout the year Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma GHG Reporting Module Enterprise Energy and Carbon Management Solutions www.teamenergy.com A Carbon Reduction Programme • ….. to assess and identify the most convenient and appropriate project scenario which brings the following benefits: – Financial – Environmental – Sustainability • by reducing your energy, water consumption (+ other resources…) and carbon emissions and therefore obtaining cost savings and achieving your targets and overall strategy Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Project Tracking Module • • • • • • Record information about energy and carbon saving projects Carry out financial appraisal for your projects Show environmental benefits of each project Determine savings of energy, carbon emissions and cost Incorporate Government policy costs e.g. CRC, FiT etc. Set Targets and track actual results Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Project Tracking Module Track project performance against targets Database for ALL Projects Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Project Tracking Module Built in baseline data quality checks Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Project Tracking Module New Project Set-up Wizards Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Project Tracking Module Scenario Details Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Project Tracking Module Group Projects into Scenarios Enterprise Energy and Carbon Management Solutions www.teamenergy.com Project Tracking Use Cases • Assess and identify a series of projects and select the project scenario to be implemented à short, medium and long term. • Determine savings in terms of: – Energy – CO2 and – Cost • Determine project costs and obtain financial calculations: – Payback Period (PB) – Net Present Value (NPV) – Internal Rate of Return (IRR) and – Marginal Abatement Cost Curve (MACC) Enterprise Energy and Carbon Management Solutions www.teamenergy.com Project Tracking Use Cases • Compare projects and different project scenarios by considering: – Financial (e.g. PB, NPV, IRR and MACC); and – Non-financial factors (e.g. environmental à CO2) • Apply sensitivity analysis to assess the effects of changes in project variables that are quantified; and • Make the relationship between investment projects with the government policy: Enterprise Energy and Carbon Management Solutions www.teamenergy.com What qualitative data is required? Others ….. Switch off PCs after use Space heating time reduction High-efficiency boiler Qualitative Data Pipe work thermal insulation Enterprise Energy and Carbon Management Solutions Double glazing Cavity wall insulation Automatic lighting controls www.teamenergy.com What quantitative data is required? Electricity, gas, fuel, LPG, other commodities ….. Carbon tax à £12 / tCO2 à CRC Conversion factors Duration of scenario period Quantitative Data Current price of energy Inflation à energy prices & carbon tax Discount rate or cost of capital Size of premises Enterprise Energy and Carbon Management Solutions www.teamenergy.com Project Modelling à outcomes Quantitative Data + Qualitative Data • Energy savings (kWh, MWh, GWh… per year) • CO2 savings • £ savings (e.g. implementation of project + CRC carbon tax) • • • Per individual project Per project scenario Per set of project scenarios • Financial appraisal calculations From 1 to N… Enterprise Energy and Carbon Management Solutions www.teamenergy.com Payback period Payback period including carbon savings (years) Financial appraisal calculations 6 5.46 5 4 3.21 2.82 3 2 1 0 1 2 Project scenario 3 Annual carbon reductions Annualised carbon reductions (kg CO2 / yr) 300,000 243,267 250,000 194,170 200,000 150,000 100,000 50,000 39,389 0 1 Enterprise Energy and Carbon Management Solutions 2 Project scenario 3 www.teamenergy.com Financial appraisal calculations • Net Present Value: – 3, 5, 10 years and any other number of years; – Discount rate à %; – Including / excluding inflation of energy cost & carbon tax. NPV (10 year project period) energy only for project 1 8,000 NPV (£) 6,000 4,000 2,000 0 -2,000 -4,000 0 1 2 3 4 5 6 7 8 9 10 Number of years Enterprise Energy and Carbon Management Solutions www.teamenergy.com Financial appraisal calculations NPV (10 year project period) energy only £30,000 -£20,000 1 2 3 4 5 Project number 6 10,000 Net present value (£) NPV (£) £80,000 IRR for project 1 5,000 Internal Rate of Return. 7 IRR = 15.302 % 0 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 -5,000 -10,000 Enterprise Energy and Carbon Management Solutions Discount rate % www.teamenergy.com Marginal Abatement Cost Curve (MACC) Marginal Abatement Cost Curve (MACC) 250 Manually control night time cooling 150 MAC (£/tonne CO2) Clean HVAC system 50 -50 0 200 400 -350 800 1000 1200 1400 1600 Waste recycling Double glazing Cavity wall insulation -150 -250 600 Targeted replacement of white goods Time controlled circuits on machines Manually switch off lighting Restrict access to lift Computer based telecom system High-efficiency boiler -450 Cumulative savings for all projects (tonnes CO2) Enterprise Energy and Carbon Management Solutions www.teamenergy.com Marginal Abatement Cost Curve (MACC) • MACC is a standard tool used to illustrate the abatement initiatives or options available to an economy aimed at reducing emissions of pollutants, e.g. GHG • The cost is plotted on the vertical axis, while the abatement potential is shown on the horizontal axis • Measures are arranged in order of cost, with the cheapest on the left and the most expensive on the right • Use it to help Prioritise investment opportunities Enterprise Energy and Carbon Management Solutions www.teamenergy.com Project Tracking - M&V • Monitoring Performance of Energy Saving Projects and Plant • Know if your project is achieving the savings that were initially expected • Understand what is working and what is not – and make changes to your project if you need to • Track progress over time and provide updated information to your managers Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Measurement & Verification of a boiler plant in a large London store using TEAM Sigma M&T software Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Two years gas consumption of two boilers which provide heating to a large high street store in London Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Daily mean external temperature v daily gas consumption a year. Retrospective review of data provides the Building Energy Signature Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Setting new regression line appears to show excess daily boiler gas usage Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Daily mean external temperature v daily gas consumption a year. Retrospective review of data determines the Building Energy Signature, Control Chart ‘tramlines’ and what appears to be excess daily boiler gas usage Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Control Chart with “tram lines” showing boilers with good control and problem beginning to occur on 1st January 2009. The software could have alerted the customer within the first day. Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study Control Chart showing the duration of the overspend and when the boilers were restored to automatic control after about 17 days Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study CUSUM V Mask – showing how the analysis technique could have been used to detect the fault …29th December, in control Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study …30th December, in control Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study …31st December, alert warning Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study …1st January. The fault would have been identified in both the Control Chart and CUSUM V – Mask analysis techniques. Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study CUSUM showing cumulative excess consumption or waste of about £14,000 (400,000 kwh @3.5p/kwh) from 1st Jan to 17th Jan. Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study There also appear to be overspend and issues in 2009/2010 Control chart confirms “out of control” periods of and a steady rise in consumption from November 2009 Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study CUSUM confirms 900,000 kWh increase in consumption or £31,500 at 3.5p/kWh Enterprise Energy and Carbon Management Solutions www.teamenergy.com M & V Case Study - Conclusions? M&V using TEAM Sigma could have……. • Closely tracked building energy efficiency and performance using Building Energy Signature, temperature correction, CUSUM, Control Chart and V – Mask techniques • Identified an overspend on 31st December 2008 and an Exception sent to management, potentially resulting in an avoided cost of £14,000 • Alerted of other ‘out of control’ periods for prompt corrective action including a £40,000 increase in consumption Enterprise Energy and Carbon Management Solutions www.teamenergy.com The Journey… ‘by 2020, we'll have reduced our operational carbon emissions by 30% absolute and 65 % relative, compared with 2005’ ‘40% reductions in CO2 levels by 2020’ ‘the world’s most sustainable major retailer by 2015’ ‘set a carbon reduction target of 50% on 1990 levels by 2025’ 20% 40% Energy / Carbon / Cost 5% ‘reduce carbon intensity of our global business by 80 per cent by 2020’ Years M&T software can underpin your journey Enterprise Energy and Carbon Management Solutions www.teamenergy.com TEAM Sigma Modules • GHG Reporting Module • Project Tracking Module – M&V Thank you Timothy J Holman Solutions Director Enterprise Energy and Carbon Management Solutions www.teamenergy.com