Green Technology: The Key Solution to the Environmental and Energy Crisis

Green Technology

The key solution to the environmental & energy crisis

Dr James Crosby-Wrigley Head of Sustainability

What to expect from this talk:

Climate Crisis

Energy Crisis

What is to be done?

Methodology

Enhanced Onsite Generation

Enhanced Onsite Efficiency

CLIMATE ‘EMERGENCY’

CO and Green-House Gas (GHG) emissions have been dramatically increasing since the industrial revolution. As a result of the Gas Effect, global average temperatures continue to increase.

CLIMATE REQUIREMENTS

We are now at the point of damage limitation. Therefore, to try and limit global warming by 2 to 3 C, the UK has introduced the Net Zero 2050 policy.

Wholesale Energy Price Volatility

non-energy costs

energy cost forecasts

Historic

Electricity = Total price to end user has been between 12p/kWh to 18p/kWh

Gas = Total price to end user has been 2p/kWh to 4p/kWh

Wholesale Market

Non-Energy Costs

Costs to End User

Future…?

Electricity = Wholesale (10 to 15p/kWh)

+ Non Energy Cost (10 to 13p/kWh) + supplier margins and risks (~3p/kWh) 23p/kWh to 31p/kWh

Gas = Total price to end user at 4p/kWh to 8p/kWh.

what can be done?

ADDRESSING EMISSIONS & COSTS

What we know:

- The grid is expensive (~20 to 32p/kWh)

- The grid is pollutive (0.19kg of CO /kWh)

Therefore, let's talk about how we can address Scope 1 and Scope 2 emissions and associated costs.

Focus on mitigating grid consumption by improving building infrastructures.

SUSTAINABILITY JOURNEY

Understand:

What are you looking to achieve and what are the timescales for these goals. Remember, Rome wasn’t built in a day…

Measure/Certify:

Full Scope 1, 2 and 3 level emissions can be accounted for by our in-house accountants.

Consult:

Outline opportunities and technologies available. This can be done remotely or through bespoke site audits.

Reduce/Offset:

Install technology and, where requested, purchase carbon offsetting credits.

Report/Recertify:

Boast about your amazing carbon reduction strategies.

KEY PHILOSOPHIES

Renewable energy generators have undergone such dramatic technological advancement over the past decades. This means technologies can now produce energy at a cheaper rate than otherwise consumed from the grid. This is achieved through technologies related to onsite generation.

This refers to technologies that undertake the same function as already existing infrastructure. However, these newer, more efficient technologies consume less gas and/or electricity but have the same performance output. This is achieved through technologies related to onsite efficiency.

INCREASED ONSITE GENERATION

EXAMPLE CONSULTATION

Reproducible for all technologies

Step 1: Converse & Audit

-Initial conversation

-Data collection

-Site specification

-Remote desktop assessment

-Detailed (ESOS compliant)

site assessment

-Recommendations

Step 2: Design and tender

-In house specialist design software for accurate system models

-Standardise requirements

-Full open market tender from experienced delivery partners

Step 3: Delivery & Management

-Project management with site teams

-Navigate any legal constraints

-Manage aftercare

-Address any additional requirements

SOLAR PV – CASE STUDY 1

Installed size = 100.04 kWp

First year:

Generation = 107,413 kWh.

Energy savings = 85,624 kWh

Value of energy savings = £25,687.20 (30p/kWh)

Year 1 carbon benefit = 20,409 kg/20.5 tonnes of CO

Equivalent US forest = 24.4 acres

Lifetime of system (25 years):

Generation = 2,575,510 kWh

Energy savings = 2,053,061 kWh

Value of energy savings = £513,265 (average of 25p/kWh)

Lifetime carbon benefit = 257,551 kg/257 tonnes (modelled average of 0.1kg of CO /kWh)

Equivalent US forest = 306 acres

Lifetime cost of electricity (LCoE) = 7p/kWh (incl O&M).

SOLAR PV – CASE STUDY 2

Installed size = 589kWp

First year:

Generation = 500,650 kWh.

Energy savings = 375,488 kWh

Value of energy savings = £112,646 (30p/kWh)

Year 1 carbon benefit = 95,124 kg/95 tonnes of CO (taken from 0.19kg of CO /kWh)

Equivalent US forest = 90 acres

Lifetime of system (25 years):

Generation = 12,004,406 kWh

Energy savings = 9,123,349 kWh

Value of energy savings = £2,280,837 (average of 25p/kWh)

Lifetime carbon benefit = 1,200,441 kg/1,200 tonnes (modelled average of 0.1kg of CO /kWh)

Equivalent US forest = 1,431 acres

Lifetime cost of electricity (LCoE) = 7p/kWh (incl O&M).

GOVERNMENT INCENTIVES

Key point 1: Full Expensing

Certain machinery enables 100% cost deduction from year-end profits. Equates to 19% to 25% savings for eligible firms.

Key point 2: 50% First-Year

Allowance

Certain ‘long life’ plant can have 50% cost deduction from year end profits. Equates to 9.5% to 12.5% savings for eligible firms.

Worked Example:

Project Value = £100,000

Special rate allocation = £50,000

19% tax bracket deduction = £9,500

25% tax bracket deduction = £12,500

INCREASED ONSITE EFFICIENCY

LED Lighting – CASE STUDY

Replacement of 382 existing non-LED fittings with highefficiency, long-lasting LED alternatives.

- Reduction in LED energy consumption = 75%

- Saving 52,000 kWh in year 1 (11.5 hours a day for 260 days a year)

- Estimated lifetime savings of £130,000 over 10-year lifetime (at 0.25p/kWh) with ROI < 2 years

- Enhanced lifetime of lighting fixtures (10 years) which saves on OPEX replacement, savings ~£680/year

- Carbon savings of 10,000 kg/10 tonnes of CO (0.19kg of CO /kWh)

Note, for this client we also facilitated a 34.85kWp solar PV system saving 28,350 kWh in grid energy!

Voltage (Power) Optimisation – CASE STUDY

Installation of 1x350kV and 1x440kV voltage (power) optimisation devices.

- Reduction in grid consumption = 8%

- Saving a combined total of 134,975 kWh/year and carbon emissions of 25,645 kg of CO

- Estimated yearly savings of £33,744 (@25p/kWh) and

- Payback <2 years

- Estimated lifetime of system is 100 years (no moving parts).

- 25 year energy savings at £843,593 and a total of 337,438 kg/ 337 tonnes of carbon (0.1kg of CO /kWh average)

2

Boiler Upgrades – CASE STUDY

Installation = 2x120kW Strebel S-CB 120 boilers

Previously had 2x120kW boilers which had reached the end of life and had poor efficiencies.

Benefits:

- Increase in efficiency from ~80% to ~95%!

- An annual saving of ~100,000 kWh/year of gas.

- Value of savings = £9,000 in year 1 (modelled at 9p/kWh)

- Carbon savings of 19,000kg/19 tonnes in year 1