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TRANSCRIPT
The Peterborough City Council and Honeywell Building Solutions Ltd
EnPC – Driving through financial savings for Local Government
across the UK , 20th November 2014
John Harrison Managing Director of Blue Sky Peterborough Limited and
Executive Director, Resources for Peterborough City Council
James Napier, General Manager, Energy - Honeywell Building Solutions
Peter Feehan, Partner - Pinsent Masons
UK Environment City
to
UK Environment Capital
THE ENERGY JOURNEY
The Peterborough approach:-
• Generate Renewable Energy
• Reduce Energy Consumption
• Enable regeneration
• Reduce carbon
• AND:
• Get financial benefits to the city
• AND LAST BUT NOT LEAST!!!
• Make and save money!
Energy Strategy
Energy The Driver
Energy
The
Driver
Buy
Save
Generate
Supply
Regenerate
Energy : The drivers for the Council
Energy The Driver
Energy
SWITCHING
• Collective
• Energy
Package
EFFICIENCY
• Domestic
• Non Domestic
GENERATION
• Energy From
Waste
• PV
• WIND
• District
Heating
• CHP
ENERGY
SUPPLY
• Trading
• Tariff
• Self Supply
REGENERATION
• Smart City
• Gigabit City
Energy : The drivers for the Council
Owner
Funding
Assets
Contractor
Payment
Guarantee
Capital investment paid out of guaranteed energy savings
What is an energy performance contract?
The need
I want an
ESCO!!!!!!!
Market Test
(PIN Notice)Pre Qualification Outline Solution Detailed Solution
Call for Final
Tender
• Focus on testing
“accepted
wisdom”
• Defining industry
starting approach
• Open invitation
• 18 responses
received
• Focus on covenant
strength, previous
experience and
appropriate scale
• Open invitation
• 13 responses
received
• Responders asked
to outline their
approach to legal,
technical and
financial delivery
• 6 invited to
respond
• Practical test, with
sample portfolio of
5 buildings
• Assessed on
financial return
and overall quality
• 4 invited to
respond
• Final practical test,
sample portfolio of
25 building,
including 15 schools
• Focus on creating
LA and school
specific solution
• 2 invited to respond
How was Honeywell procured?
Global Resources
>5000 Projects Globally
>250 different technologies available
Risk Management
£200million annual energy Guarantees
Delivered over £4.5billion energy
savings
Experience
30 years in Energy
120 years in Solutions
End to End Capabilities
Consult
Design
Deliver
Maintain
• Signing up to the framework is a Stepping Stone
• Long term goals are only achieved by strong delivery
• The Framework is the ‘means’, significant contract delivery is the ‘ends’
• Honeywell provides
Significant success in delivery savings
Proven sales process to manage customers through the process
Resources and commitment to drive scalability
Technology to drive long term energy optimisation across building portfolios
A long term partner to drive continuous improvements
What do Honeywell bring ?
• Core business is targeting & achieving Energy Savings
Agnostic approach to technology – over 250 ECMs
Step 1 – Reduce Demand
Ventilation fansBuilding management
systemsDamper control
Voltage Reduction
Boiler upgrades, controls,
Combined Heat & Power
Chiller upgrade /
replacement & absorption
cooling
Zone temperature Control
Building envelope
Lighting replacement,
control systems & LEDs
On-site technical
resource management Plug load management
High efficiency motors &
VSD Motor Control
CO
2 re
du
ctio
n
Asset upgrades
Micro Grid
Renewable
Low Carbon
Smart Grids
Step 1
Reduce Demand
Step 2
Optimise Generation
Step 3
Active Demand Management
Three stage solution
100
90
80
70
60
50
40
30
20
10
0
Asset upgrades
Micro Grid
Renewable
Low Carbon Smart Grids
Step 2 – Optimise Generation
• Solar heating
• Biomass boiler
• Ground/air source heat pumps
• River water cooling
• Absorption coolers
• Organic Rankine cycle
• Fuel cells
• Energy from waste
• Wind
• Photovoltaic
• CHP
• Trigeneration
• Anaerobic digestion
• Gasification
• Pyrolysis
Which generation
technology ?
The appropriateness, given the environment in which they are
to be used or with any legislation governing their use in a
particular location.
In the right circumstances and with the right level of analysis all
of these technologies can provide acceptable savings in both
energy costs and CO2
Step 3 – Active Demand Management
Active Demand Management
Recognising that the energy usage within a building is not static and can be greatly
affected by the activities being undertaken in a building at a point in time.
The amount of wasted energy can be actively managed by the installation and
management of control systems which provide the following:
Detailed visibility of energy usage in real time
Remote monitoring of asset efficiency and intervention (both physically &
remotely) to ensure ongoing asset efficiency
Automated systems to manage peak demand and to ‘shed’ non essential
demand as required
Smart Micro Grids
Coordinating energy from multiple sources with varying costs, incentives and
carbon impacts requires complex decision timing to maximise benefits.
Smart micro grids automate this decision process including the demand responses
from larger smart grid events.
Engagement Feasibility TestOpportunity Assessment
Investment Grade Audit
Installation
• Initial explanation of
contract
• Introduction to
Honeywell
• May include some
high level
assessment of
feasibility
• High level
commitment gate to
determine if both
sides see an
opportunity
• LOI commits Host to
paying access fee if
they pull out
• Defines the size of
opportunity,
programme and
timescales.
• Savings are bound
by acceptance
threshold for IGA
• Adds detail and
refines estimates
used for OA
• Defines final
financial terms
• If IGA results fall
within OA results
and Host pulls out,
costs are payable
Letter Of
Intent
Development
Agreement
Call Off
Contract
What happens during the contract?
Phase 1 intervention - The Works
Lighting Pool Cover
Air
Handing
Plant Act Earth Pool Filters BMS Controls Insulation
Phase 1
Regional Pool ECM (15 year) Y Y Y Y Y Y Y
Jack Hunt Swimming Pool (15 year) Y Y Y Y Y
Town Hall - Civic Areas (15 year) Y Y Y Y
Multi Storey Car Park (6 year) Y
City Market (6 year) Y
Central Library (6 year) Y Y Y Y
Bushfield Sport Centre (15 year) Y Y Y Y
Lido – Outdoor Pool (15 Year) Y
Act Earth – This is a training program to educate staff on saving energy.
BMS Controls – Building Management Controls – i.e boilers and heating controls.
Phase 1 intervention - Before &
After Photos
Car Park Assessment – 6 years
ITEM UNIT VALUE
Overall project
cost £ 369,000
Total energy
savings £ 388,000
Total Operating
Savings£ 41,000
NET POSITION
(+/-) £ 60,000
Phase 2 intervention - The Works
Lighting CHP
Air
Handing
Plant Act Earth Boilers BMS Controls Insulation
Phase 2
Regional Pool CHP (15 year) Y Y
YMCA (15 year) Y Y Y Y
Act Earth – This is a training program to educate staff on saving energy.
BMS Controls – Building Management Controls – i.e boilers and heating controls.
Phase 2 intervention - CHP
CHP Assessment
ITEM UNIT VALUE
Contract Sum £ 323,000
Life Time Operating
Costs£ 488,000
Guaranteed Energy
Savings £ 986,000
NET POSITION (+/-) £ 175,000
Phase 1 Phase 2 Total
Number Of Sites 8 2
Type Of Sites
Leisure / Admin Offices / Multi
Storey Car Parks
YMCA (Theatre) &
Swimming Pool
Costs
Capital Investment £2.0m £0.6m
Operational Costs £1.3m £0.5m
Total Cost £3.3m £1.1m £4.4m
Savings Over The Contract
Revenue £3.0m £1.4m
Capital Avoidance £2.0m £0.1m
Total Savings £5.0m £1.5m £6.5m
NET SAVING: £1.7m £0.4m £2.1m
ANNUAL CO2 SAVING –
TONNES 895 528 1423
Corporate Buildings Financial Summary
Savings Per Annum
6 Year Interventions
80% - 100% £23,366
From Year 7 No guaranteed (Intervention
paid off £84,485
15 Year intervention
80% - 100% £45,966
From Year 16 No guaranteed £268,348
Total Saving 1 to 6 (per annum) £69,332
Total Savings 7-15 (per annum) £130,451
CRC Savings from 2019/20 £280,000
Energy Upside – Phase 1 & 2
Phase 3 intervention - Schools Works
Lighting Act Earth Boilers BMS Controls Insulation
Sacred Heart RC Primary School X X X X
Watergall Primary School X X X X
Parnwell Primary School X X X X X
Welbourne Primary School X X X X
Honeyhill Centre PRS (Secondary) X X X X X
Abbotsmede Community Primary School X X X X X
Gunthorpe Primary School X X X X
Castor C of E Primary School X X X X
Winyates Primary School X X X X
Heltwate School X X X X
Leighton Primary School X X X X
Middleton Primary School X X X X
Old Fletton Primary School X X X X
Caverstede Early Years Centre X X X X
The Beeches Primary School X X X X
Oakdale Primary School X X X X
Paston Ridings Primary School X X X X
The Duke of Bedford Primary School X X X X
Marshfields X X X X
Norwood Primary School X X X X
Braybrook Primary School X X X X
John Clare Primary School X X X X
Wittering Primary School X X X X
Act Earth – This is a training program to educate staff on saving energy.
BMS Controls – Building Management Controls – i.e boilers and heating controls.
Phase 3 Phase 4 Phase 5 Total
Number Of Sites 23 8 11
Type Of Sites Schools Schools - Solar Schools ECM
Costs
Capital Investment £1.174m £0.5m £0.36m
Operational Costs £0.093m £0.71m £0.22m
Total Cost £1.267m £1.21m £0.58m £3.057m
Savings Over The Contract
Revenue £1.532m £1.41m £0.63m
Capital Avoidance £0.0m £0.0m £0.0m
Total Savings £1.532m £1.41m £0.63m £3.572m
NET SAVING: £0.265m £0.2m £0.05m £0.515m
ANNUAL CO2 SAVING –
TONNES 368 85 176 629
Honeywell Schools Program – Financial
Summary
Savings Per Annum
15 Year intervention
80% - 100% £44,650
From Year 16 No guarantee £223,250
Asset Upgrade - Energy Upside –
Phase 3, 4 & 5 interventions
Contract rollout across the UK
• Support from EELGA for three councils:
• - Southend on Sea, Thurrock and Basildon
• Southend on Sea signed LOI
• 4 councils at Feasibility stage
• 3 councils at Opportunity Assessment stage
1 2
3
4
Compliant
Bankable
Structured
Commercialised
Energy resourcing requirements
1
2
3
4
APSE ENERGY
“The 3 P’s”
• People
• Poverty
• Pounds
APSE
John Harrison
Executive Director Resources
Peterborough City Council
Managing Director, Blue Sky Peterborough
+44 (0) 1733 452 520
+44 (0) 7920 160 122
Next steps- CALL IN AT STANDS F5 AND E20 AND START SAVING MONEY!
27
James Napier
General Manager, Energy
Honeywell Building Solutions
+44 (0)161 251 4122
+44 (0) 7800 871 252
Peter Feehan
Partner
Pinsent Masons LLP
+44 (0) 207 490 6449
+44 (0) 7766 925 103