Lessons from Energy Efficiency ProgrammesAsia Clean Energy ForumManila, Philippines18th June 2015

Tom Delay, CEO, The Carbon Trust

Introduction to the Carbon Trust

› An independent, expert partner of leading organisations around the world

- We advise businesses, governments and the public sector on their opportunities in a sustainable, low carbon world

- We measure and certify the environmental footprint of organisations, products and services

- We help develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power

› We have about 180 employees working around the world from offices in the UK, China and Mexico with representation in South Africa and Washington DC

Our mission is to accelerate the move to a sustainable, low carbon economy

3

UK energy efficiency programmes from 2005

Awareness Raising› Advertising campaigns on TV, radio, outdoor, press, digital and search› Direct marketing, events and PR

Remote advice› Supported up to 50,000 SMEs per year› Online tools, publications and advice line› Our publication library had an annual demand of over 250,000 publications

Energy audits and strategic advice› Trained and accredited team of 400 engineers› Delivered up to 5,000 on site surveys› Over 20% savings on energy bills identified on average

Loans scheme› Disbursed over £160m of interest free loans to SMEs› Backed up by over 10,000 Energy Savings Assessments

Programme delivered £5.5bn cost savings and over 60mt CO2 reductions

Cost of “unlocking” energy efficiency < $10 per tonne CO2

Net present value of costs and benefits for 2009/10, £m

Technical assistance

Capital investment

Lifetime savings

Total cost saving

(32)

(252)

716 432

But needed commitment, targeted advice and flexible finance

› Weak business drivers limit organisational commitment› Energy is not relevant to “core business”› Lack of sustained senior level commitment

› Lack of an identified solution prevents action› Perceived risk of new technologies › High transition costs

› Lack of funding prevents investment› Measures may be NPV positive but with

paybacks of over 2 years fail to meet company investment criteria

› Awareness raising

› Technical advice and support

› Access to finance

6

Now working on a number of international energy efficiency projects

Private Sector Energy Efficiency Programme, South Africa Deployment of LED lighting,

Malaysia

Energy Efficiency loans, awareness raising and advice programme, Mexico

7

The PSEE programme offers support to businesses in South Africa

Sponsorship

Funding

Delivery

Support depending on energy spend

› Remote Advice and guidance provided by: Telephone, Website, Publications, Events & workshops

› Subsidised energy surveys and implementation support

› Strategic energy consulting support

› Allocated account manager

Network of local consultants

Lifetime Impact targets

£238 million energy cost savings

3.6 million tons CO2 emissions reduction

Cost over 2 years

£ 8.6 m

100% on awareness raising & advice

8

Accelerating the deployment of LED lighting in Malaysia

Funding

Delivery

Applying proven approaches to accelerate the deployment of cost effective LED lighting solutions, working with

› Customers – demonstrating the business case to private and public sector organisations through trade associations

› Suppliers – promoting locally manufactured, high quality LED lighting products (a key focus for economic growth in Malaysia)

› Intermediaries – delivering training to energy managers and M&E contractors on the identification and implementation of LED solutions

9

Large opportunity across all markets with many common challenges

The opportunity

› Significant savings with short pay-backs available in all markets we have worked in

› Particular local circumstances can present additional opportunities or increased motivations, e.g:

› Regeneration projects

› Security of supply concerns

The challenges

› All of the challenges seen in the UK market appear to exist in other markets, often exacerbated by local circumstances, e.g:

› Low energy costs

› Low quality of suppliers

› Lack or inadequacy of regulation, e.g. feed-in framework not working properly

10

Considerations for effective energy efficiency programmes

› All barriers need to be tackled simultaneously to be effective – provision of finance alone is not enough

› Up-skilling and quality control of local supplier and consultant base is key

› Programme needs to be long enough to see projects through to implementation (~4-5 years minimum)

› Awareness raising and marketing activity is crucial to achieve uptake

Whilst reasonable steps have been taken to ensure that the information contained within this publication is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warranty and make no representation as to its accuracy and accept no liability for any errors or omissions. All trademarks, service marks and logos in this publication, and copyright in it, are the property of the Carbon Trust (or its licensors). Nothing in this publication shall be construed as granting any licence or right to use or reproduce any of the trademarks, services marks, logos, copyright or any proprietary information in any way without the Carbon Trust’s prior written permission. The Carbon Trust enforces infringements of its intellectual property rights to the full extent permitted by law.The Carbon Trust is a company limited by guarantee and registered in England and Wales under company number 4190230 with its registered office at 4th Floor Dorset House, Stamford Street, London SE1 9NT.Published in the UK: 2015.© The Carbon Trust 2015. All rights reserved.