Effective Energy

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Effective Energy Carbon Reduction EAUC 12th
Annual Conference - 31st of March 2008 Kevin
McDonald Paul Smyth - Salix David Stutchfield
St Andrews
Our mission is to work with the public sector to
reduce carbon emissions through investment in
energy efficiency and renewable technologies.
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Salix Finance Agenda

• Introduction to Salix Finance
• Update on current HEI FE activities
• HEI activities new opportunities from April 08
• Recent improvements to the fund
• St Andrews - A Clients perspective
• Questions?

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Salix Finance

• Introduction to Salix Finance

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Salix Finance who are we?

• Independent not-for-profit company
• Set up by the Carbon Trust in 2004
• Work only with public sector bodies
• To reduce energy costs and carbon emissions
• Show leadership in tackling climate change

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Salix Finance what do we do?

• Stimulate investment
• Using ring-fenced funds
• Recycle all projected savings
• Focus on cost-effective projects with high CO2
  reduction impact
• Match funding typically 250K
• Initial fund spent over 2 years
• Reduce energy bills
• Make capital go twice as far

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Salix Finance - types of technology

• The following lists the main types of technology
  in the fund
• BEMS
• Boiler replacements and controls
• Cooling and heating projects including controls
• Insulation Building Fabric
• Lighting upgrades and controls
• Motors and motor controls
• Office equipment improvements and network PC
  management
• Renewables
• Swimming pool covers and controls
• Ventilation
• Voltage reduction

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Salix Finance All Clients projects breakdown
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Salix Finance All clients projects breakdown
Insulation Projects
Insulation Projects
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Salix Finance - project criteria

• Projects must deliver both CO2 revenue benefits
• Two project compliance criteria
• 5 year payback period and 100/tCO2
• 7.5 year payback period and 50/tCO2
• Energy efficiency projects
• As documented in the Salix Project tool
• Or approval through suitable demonstration
  project
• CHP and renewable energy technologies
• Include a feasibility study carried out according
  to a recognised methodology

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Salix Finance

• Update on current HEI FE activities

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Salix Finance - working with Higher Education

• Initial Pilot consisted of 8 Universities

University Cambridge Kings College Leeds
Met UWE Edinburgh Glasgow St Andrews Stirling To
tal
Salix Fund 2,079K
Total Fund 4,171K
Two clients have now increased funding size
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Salix Finance - working with Higher Education

• Projects undertaken March 08 snap shot

Commissioned In Progress Number of HEIs -
8 Number of projects - 93
Total value of projects - 1,870K Projected
savings Annual financial savings -
515K Lifetime Energy Saving - 4,389K Annual
CO2 saved - 3,417T Total CO2 saved -
29,000T Average payback -
3.63 years Average fund age is only 12 months,
all clients are ahead or in line with schedule
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Salix Finance - working with Higher Education

• HEI New Phase I clients will be

University Durham Exeter Newcastle The
Open Portsmouth Sheffield York Aberdeen Abertay
Napier Strathclyde Total
Salix Fund 2,219K
Total Fund 4,438K
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Salix Finance - working with FE Colleges LSC

• Salix / LSC Pilot

Assessed applications Number of Colleges -
230 Number of projects - 1,248 Total
value of projects - 22,721K Projected
savings Annual financial savings -
6,441K Lifetime Energy Saving -
49,208K Annual CO2 saved - 47,047 T
Lifetime CO2 saved - 359,457 T Average
payback - 3.52 years Grant payments to
be made in April 08, projects to be completed by
September 08
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Salix Finance

• HEI activities new opportunities from April 08

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SALIX Finance new HEI opportunities

• New Salix Funds are now confirmed - DEFRA press
  release 13th of March
• 30 Million over three years
• 10 Million earmarked for HEI (2 years x 5)
• Intention is that these funds will be used in
  conjunction with HEFCE Revolving Green Fund
  Institutional Fund
• Time line for 1st round of applications
  anticipated to be July 08 closing date and
  September 08 award

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The HEFCE SALIX Partnership

• Two strands to the funding with an annual
  application process
• An institutional small projects fund
• - Size 20M
• - This will use the traditional Salix model with
  HEFCE providing the match funding on behalf of
  the HEI
• A transformational fund
• - Size 10M
• - The purpose is to tackle large projects that
  will transform the institutions energy
  consumption and reduce its emissions

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The Institutional Small Projects Fund

• HEFCE will match Salixs funding on behalf of
  each HEI fund size will be determined on an
  individual application basis
• HEIs will be required to contribute a minimum of
  25 of their fund value but they are encouraged
  to exceed this and those that do so will be
  preferred in the selection process
• HEIs will be able to use their contribution to
  fund projects that fall outside Salixs criteria
  but still give savings
• Closing date of Consultation is 21st of April 08

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The Institutional Small Projects Fund
Assessment Criteria

• Applications to the fund will be assessed using
  Salixs current assessment process. Considering
  the following
• The number of ready to go projects at the time
  of the application
• The presence of energy management expertise and
  capability to manage the fund
• The level of financial contribution from the
  institution

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Salix Finance

• Recent improvements to the fund

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Changes over the last 12 months - New structure

• Starting in February 07 we brought our client
  facing activities in-
• house and set up a team of Client Relationship
  Managers. The
• aim was to take a more pro-active approach to
  working with
• clients. This has resulted in
• More time being spent with clients on-site and in
  group meetings
• Improved key point of contact communication
• Support in accelerating project implementation
  and carbon delivery
• Better sharing of information and technology
• Two way feedback helping us to continue to
  improve the business model

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Changes over the last 12 months - The application
process

• To support recruitment of new clients we have
  appointed a Business Development Manager. We have
  also worked hard on the application process
  resulting in
• Hands-on support to explain the Fund and
  support the application process
• A revised application document with only 7
  pages. Previously it was 30 pages
• A compliance tool complete with supporting
  technical notes that logs projects and provides
  both financial and carbon savings in a consistent
  format
• Sharing of approximately 1000 projects showing
  clients what is working in their sector

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Changes over the last 12 months - Making the
model work for you

• Making use of the scheme management charge (SMC)
• For each project undertaken, a client can
  exercise a right to
• take up to 15 of the project spend as a scheme
  management
• charge which can then be used for the following
  options
• To fund resource to run the Salix programme
• To support consultancy investigations to
  establish new Salix projects
• To pay for investment in MT
• To pay for Infrared Thermography technology
• To help make a new non-compliant project
  compliant, based on a 20 non-repayable
  contribution option

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Salix Finance

• St Andrews - A Clients perspective

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Skills for SustainabilityExeterEffective
Energy and Carbon Reduction David Stutchfield
Energy OfficerUniversity of St Andrews
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St Andrews University Overview

• Voted Best University in Scotland 2007 (source -
  Sunday Times UK University Guide table 2007)
• 1st place in Scotland People and Planet SD League
  table 2007
• 6,808 students (UG PG)
• 1,884 staff
• 120M annual turnover
• 229,792 m2 building stock
• 180 buildings from 1410AD

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Measure your footprint - HECMP
        
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Utilities Strategy

• 4 Utilities Workstreams - Ultimate aim to be
  carbon neutral for energy
• Information and tools (MT and AMR systems)
• Behaviour (Awareness - Interhall
  Energy Competion,
• Psychology project)
• Investment (Salix)
• Renewables

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Effective use of the advice bodies

• Higher Education Carbon Management Program
• Partnership Agreement with Carbon Trust gives
  access to significant consultancy of Site Surveys
  for carbon reduction each year.
• Energy Reduction in buildings
• Renewable Resources
• Design Advice on new buildings from Carbon Trust
• Green Fleet / Travel Plan Review from Energy
  Saving Trust
• Low Carbon Technologies grants from Energy
  Saving Trust and Low Carbon Buildings Phase 2
  (GSHP, Solar PV Thermal etc)
• Big Splash Water Saving Review from Envirowise
• Salix funding for specific projects

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Effective Use of Salix Fund

• Develop program of works based on HECMP or Carbon
  Trust Site Survey reports
• Work out what is the maximum the University can
  afford to match fund, and what is the maximum
  number of projects you have time to implement.
• With Salix Funding of 524K, and a total of
  1,068K to be spent over a two year period, St
  Andrews has the largest fund value of all the
  pilot universities.

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Operation of Salix Fund

• Examples of work undertaken
• Loft Insulation
• Pipe insulation
• Window draught sealing
• Refrigeration motor controls

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Utilities Renewable Energy
Solar thermal
Wind
Geothermal
Gas and Biomass CHP
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Thank You
www.st-andrews.ac.uk/environment
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Salix Finance

• Questions?

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25 Southampton Buildings, London WC2A 1AL t 020
3043 8800 f 020 3043 8799 info_at_salixfinance.co
.uk www.salixfinance.co.uk
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Salix Finance - Maintaining the Fund
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Salix Finance - Maintaining the Fund
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Salix Finance - Maintaining the Fund
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Salix Finance - Maintaining the Fund