Salix Energy Efficiency Funding in Higher Education

Transcription

1 Salix Energy Efficiency Funding in Higher Education 15 January 2014 Higher Education Funding Council for Wales Salix Finance Ltd is an independent, not for profit company funded by The Welsh Government, The Department for Energy and Climate Change, The Department for Education, and The Scottish Government. Salix works in partnership with The Higher Education Funding Council for England on its Revolving Green Fund.

2 Purpose of Event Take a more strategic approach with the Welsh Universities Improve your understanding of Salix & funding available Closer collaboration with HEFCW Discussions encouraged!

3 About Us

4 Who we are Established in 2004 Independent, publicly funded, not for profit company Interest free capital finance for energy efficiency in the public sector Funded by Welsh Government, DECC, Scottish Government, DfE, HEFCE Supporting, Education, Emergency Services, Local Authorities & NHS Trusts

5 Growth from m 932,029 5, client pilot funding energy annual projects schemes allocated savings tco clients supported funding allocated energy savings annual tco 2 projects Data as August 2013

6 Salix Activity in Wales Working in Wales for nine years Invested 14 million in energy efficiency projects Saving 45 million over the lifetime of the projects Savings recycled to support further client projects

7 Working with Universities Initial Salix work was with Local Authorities & Emergency Services First four university pilots established in 2006/07 in England (Ring Fenced Recycling Funds) Second pilot established in 2007/08 in Scotland (again Ring Fenced Recycling Funds) Both pilots moved to full programmes by the end of 2007/8 Match funding received from HEFCE & Scottish Government after successful work in this sector

8 Working with Universities Half year update of Salix/HEFCE RGF1 completed in September: In addition, Salix have also funded 17 million of loans to English HEIs during the last 12 months Update for Scotland shows a similar profile but on a smaller scale!

9 Working with Universities in Wales Institution 2009/ / / /13 Aberystwyth University Y Y Bangor University Y Cardiff Metropolitan University Y Y Y Glyndwr University Y Y University of Wales, Newport Y Y Still opportunity for 2013/14..

10 Project Focus & Support

11 Salix Focus 3 4 Onsite Renewable Energy Offsetting Salix Focus: capital investment to reduce energy & save carbon 2 Installing energy efficient technology 1 Minimise wasted energy: controls and awareness raising

12 Salix Project Compliance 400t LT Client Additional Fund 300t LT 10yrs, 400/tCO₂ LT 200t LT 100t LT Welsh HE Recycling Fund & Loans SEELS Wales 8yrs, 200/tCO2 LT 50t LT

13 Considering the life of different technologies Project compliance examples Project cost 7,500 Annual kwh saving 60,000kWh Gas price assumed 3p If boiler replacement project, the PF is If cavity wall insulation project, the PF is 14.44years years Annual financial saving for both cases 1,800 (4.17 years) Annual CO2 saved for both cases 9.18t Lifetime CO2 saved for boiler replacement is 9.18 x = 132.6t Cost to save a tonne of CO 2 over project lifetime 7,500/132.6 = Lifetime CO2 saved for cavity wall insulation is 9.18 x = 275.4t Cost to save a tonne of CO 2 over project lifetime 7,500 / = 27.23

14 HEIs Top project types Cumulative summary of HEI projects since FY 2011/12 (RF & S4/5/6) 9.3m Value of projects funded 4.6m 2.4m 2.2m 2.1m 1.5m 1.2m Combined Heat and Power LED lighting Heating Lighting - Upgrades Multiple Project Site Computers and IT Motor Controls

15 HEIs Top project types Cumulative summary of HEI projects since FY 2011/12 (RF & S4/5/6) 319 No. of projects funded LED lighting Lighting - Upgrades Lighting - Controls Insulation - Pipework Heating Motor Controls Insulation - draught proofing

16 New Build and Major Retrofits The approach taken by the University of Andrews for any major new build or retrofit is to: Brief the consultants on their Salix Fund Consultants come up with improvements above normal building standards E.g their recent data centre project where they invested in Uninterruptible Power Supplies (UPS) and Free Cooling solutions leading to a data centre with one of the lowest Power Utilisation Efficiencies in the HEI sector Salix funding can cover the cost of projects beyond the allocated budget

17 Beyond Buildings Working with ICT

18 Beyond Buildings Working in Labs

19 More than just Finance Quarterly Regional meetings Technical Interest workshops free funding Case studies Knowledge sharing website & project knowledge slides* Opportunity to arrange group and individual meetings Technical services support *Over 200 project knowledge slides available to public sector bodies only

20 Case Studies Exemplar Welsh Schools

21 Case Studies in English & Welsh Available to download from Salix website

22 Benchmarking in Schools

23 Funding Structures

24 Salix Finance Funding Programmes Current Products Energy Efficiency Recycling Fund Salix Energy Efficiency Loans 100% interest free capital finance loans Funding Applications: no maximum & up to 100% of project total Project Criteria: 8 year payback, up to 200/tCO 2 LT Loan Repayment: 12 instalments over 6 years

25 Loan Criteria & Management Project payback: within 8 years Wales Salix Energy Efficiency Loans Timeframe: 9 months to install & complete project* Loan Payment: at completion of project Interim Payments: possible if required Loan Repayments: over 6 years (12 instalments) *Some flexibility for projects approved before tender process

26 Salix Website Online Application

27 Salix Finance Funding Programmes Current Products in Wales Energy Efficiency Recycling Fund Salix Energy Efficiency Loans Recycling Matched Funds with 6 Local Authorities in Wales Ring fenced capital funding investment with client part funding Loan repayment: based on project savings payback

28 Salix Finance Funding Programmes Current Products in Wales Energy Efficiency Recycling Fund Salix Energy Efficiency Loans Recycling Matched Funds with 6 Local Authorities in Wales Ring fenced capital funding investment with client part funding Loan repayment: based on project savings payback

29 Recycling Fund Model Salix Funding Partner Funding Ring fenced Sustainability Client Fund Energy Efficiency Projects Energy Savings 29

30 Recycling Fund Benefits Wales Salix Recycling Fund By pass Annuality Financial & Carbon management reporting Help maintain sizeable baseline budget for capital projects yr on yr Structured method of setting up loans Internal departments & Devolved budget holders Salix Energy Reporting System to manage projects & generate reports Management charge option to pay for internal resource 75% repayment option

31 Salix Energy Reporting System (SERS) Input 1. Project Data Entry 2. Established Carbon Emission Factors 3. Approved Technologies Master Knowledge Base 4.Lifetime Modelling - latest Persistence Factors Output 1. Financial Management 2. Reports Analysis. Funding Available Repayments back in Loans Outstanding Loan Agreements Commissioned Carbon Saved Client Spend

32 Project Tools and Testing Systems Project compliance tools covering: Different schemes and their compliance rules To support where multiple fuels will be saved To support a package of projects on the same sight Project Evaluation Tools (PET) Used to test all projects Based on knowledge acquired over many years of working with clients Capturing and holding of project knowledge Salix Energy Reporting System for Recycling Fund (used by clients) SEELS reporting system for individual loans (Used by Salix personnel)

33 Energy Costs and Carbon Emissions 2010/11 energy bill was 20 million Projected to rise to 27 million by /11 carbon emissions was 107,000 tonnes A 3%/year reduction x 5 years will save 11,000 tonnes Opportunities How much to be achieved by: behavioral change; better use of space; general rationalisation of estate, How much requires new capital investment Typically it can cost as little as 1,000 in energy efficiency investment to save 1 tonne of carbon per annum However, even achieving the 3%/year reduction may result in the energy spend increasing to 24 million!

34 Opportunities & Next Steps Take advantage of SEELS If RF is off interest, investigate opportunities for match funding Fund could be at a HEI Uni level Or individual HEI level Savings due back from any SEELS projects could be ring fenced for a future RF fund for each individual Uni Thank You

35 For more information on the Salix Energy Efficiency Loans 100% Programme in Wales: Paul Smyth Head of Programmes Lucinda Green Client Support Officer Leyla Stender Programme Manager Or visit: