Managing Energy Costs – Smart Procurement,
Smart Systems, Smart Use
Sustainable Business Network, 4 March 2022

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Agenda09:30 Welcome & Legal Briefing - Dr Wendy Buckley, Chair SBN North Hants
09:45 Energy Markets & Procurement – What’s really Driving them and how
to buy smart - Energy Intelligence Centre - John Palmer & John Dawson
10:05 – Case Study – Portals - Sharon Ball
10:25 Funding for low energy technology - Low Carbon Across the South
East (LoCASE) – Alison Marsh & James Traynor

10:35 Q&A
11:00 CloseSBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

Legislation & Market Trends
Dr Wendy Buckley
Carbon Footprint Ltd01256 592599
wendy.buckley@carbonfootprint.com

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

https://grid.iamkate.com/
SBN –Carbon Footprint LtdImages courtesy of CNN travel, Guardian (Aus), InceptiveMind,Simpleflying, BBC, Getty Images, and EvTol© Carbon Footprint Ltd 2022

Government’s Net Zero Strategy – No clear planfor funding says Public Accounts Committee
Key Goals• Decarbonised grid by 2035
• More offshore wind, low-carbon hydrogen, carbon capture,heat pumps, energy efficiency, tree planting … over the next 15 years.
• Scaling up private investment

So far• Committed £25+ billion up to 2025
• No clear answers for delivery policy or replacing income from current taxes• Risk of disconnected initiatives not delivering overall results

Report available at:https://publications.parliament.uk/pa/cm5802/cmselect/cmpubacc/642/report.html
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IPCC Sixth Assessment Report• Projected overall decline in crop yields acrossEurope – irrigation options hindered by waterstress• Damage from coastal flooding to increase by
2100 – (1 billion people to be exposed)
conservative estimates assuming adaptationand mitigation• Africa contributes least to GHG emissions but
has widespread damages (biodiversity loss,water shortages, lower crop yields, life loss,
reduced economic growth)• Wildfires generate 1/3 of ecosystem carbon
emissions

SBN –Carbon Footprint Ltd

Report available:
https://www.ipcc.ch/report/ar6/wg2/© Carbon Footprint Ltd 2022

IPCC Sixth Assessment Report• Increasing extinctions in Australasia – due to sealevel rise, storm surges + extensive coral bleaching
and loss of kelp forests due to ocean warming andmarine heatwaves. Financial and emotional stressin farming households and rural communities.
• Glacier outbursts will threaten local anddownstream communities in mountainous areasof Asia
• North America – Trump legacy misinformationand politicization of climate science• Green built environment will work
• Mental health mentioned for first time – trauma
from extreme events, loss of livelihoods andculture.

SBN –Carbon Footprint Ltd

Report available:
https://www.ipcc.ch/report/ar6/wg2/© Carbon Footprint Ltd 2022

Strengthening the Energy Savings Opportunity Scheme(ESOS) – Consultation closed – results awaited
Aim: improve the uptake of energy efficiency measures and increase benefits forbusinesses.
Looked at:• Improved audit quality through standardisation of reporting requirements• Inclusion of net zero carbon element to audits• Requiring public disclosure of high-levelrecommendations
Plus…
• Extending the scope to include medium sizedbusinesses• Mandating action on audit recommendations
Image courtesy of Inhabitat

Payback periods improve with grid energy cost rising
SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

Environment Act 2021 now passed (9th Nov)
• Long-term and interim targets for priority areas:– Air Quality (inc. PM2.5 target)– Water– Biodiversity (interim to be 31st Dec 2030)– Resource efficiency and waste reduction• Draft statutory instrument for targets by 31st October 2022
• 1st review by 31st Jan 2023
• Subsequent reviews at least every 5 years

Images - Defra
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Environment Act 2021 now passed (9th Nov)
• Establishment of The Office of Environmental Protection (the OEP)
– Monitor progress of env improvement plans + targets– Annual reports on progress– Advise on changes to env law– Take complaints + investigate public authority compliance failures (env law)

• Creation of Conservation Covenants
Also… updates to Waste and Resource Efficiency, Air Quality, Water, Nature &Biodiversity legislation.
https://www.legislation.gov.uk/ukpga/2021/30/contents/enacted

Images - Defra
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More Fines for Water Companies…
• Thames Water - £4 million after 30 hour waterfall of sewage discharge– Accrued £32.4m in fines since 2017 for 11 cases of water pollution• EA and Ofwat launch major investigation into sewage treatment works– Will involve 2000+ treatment works– Fines can be up to 10% of annual turnover (civil cases) or unlimited (criminal proceedings)– EA asks companies to fit new monitors at sewage works (many companies say they may notcompliant following this request) - part of new monitoring programmes following theEnvironment Act 2021.
– Environment Act 2021 introduces clear new duties to legally require water companies to makeprogressive reductions in adverse impacts of storm overflows• Northumbrian Water - £165,000 to Tyne Rivers Trust following unauthorised
discharge from treatment works

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

…High Fines for Waste and Custodial Sentences• Auckland Environmental Services Ltd – MD receives a 15 month +12 month custodial sentence, suspended for 2 years (+ 200 hours
unpaid work) following consent to unlawful deposits of hazardous
waste and false documentation.
• Trafalgar Scientific Ltd – failed to register as a packaging producer– £17,600 payment to Bradgate Park Trust’sJubilee Woodland project + standard EA fines

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

References / Useful Links
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Zero-E Tech: The UK's New Hydrogen Fuel Cell Facility (simpleflying.com)
New method for rapid, efficient hydrogen generation from water - Inceptive MindAirbus to use A380 to test hydrogen-fueled engine | CNN Travel
ZEROe - Zero emission – Airbus
UK petrol price jumps above £1.50 as oil costs rise - BBC NewsWhy The UK Is Becoming The Center Of Hydrogen Aviation Innovation (simpleflying.com)
HyPoint opens new hydrogen fuel cell research facility in the UK - evtol.com
https://www.independent.co.uk/climate-change/news/ipcc-un-report-ten-findings-b2024549.html
https://www.gov.uk/government/news/thames-water-fined-4-million-after-30-hour-waterfall-of-sewagedischarge
https://inhabitat.com/new-photovoltaic-solar-technology-boosts-efficiency-to-50/solar-panels-stock-photo/https://www.gov.uk/government/news/water-companies-could-face-legal-action-after-investigationlaunched-into-sewage-treatment-works
https://www.gov.uk/government/news/north-east-charity-gets-boost-as-water-company-pays-for-pollution
https://www.gov.uk/government/news/stockton-waste-boss-ordered-to-repay-800000
https://www.legislation.gov.uk/ukpga/2021/30/contents
United Kingdom gasoline prices, 28-Feb-2022 | GlobalPetrolPrices.com
National Grid: Live Status (iamkate.com)
UK Net Zero 2050: Government “without answers to key questions” on costs or funding target set in law Committees - UK Parliament
https://www.trafalgarscientific.co.uk/

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

Agenda09:30 Welcome & Legal Briefing - Dr Wendy Buckley, Chair SBN North Hants
09:45 Energy Markets & Procurement – What’s really Driving them and how
to buy smart - Energy Intelligence Centre - John Palmer & John Dawson
10:05 – Case Study – Portals - Sharon Ball
10:25 Funding for low energy technology - Low Carbon Across the South
East (LoCASE) – Alison Marsh & James Traynor

10:35 Q&A
11:00 Close

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

Join us Again Soon….

carbonfootprint.com - Sustainable BusinessNetwork Workshop
SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

Your Feedback & Our Thanks To….

SBN –Carbon Footprint Ltd© Carbon Footprint Ltd 2022

Energy Markets & Procurement – What’s
Really Driving Them and How to Buy Smart

Energy Intelligence Centre

www.eic.co.uk

John Palmer
Director of Flexible Procurement
E: john.palmer@eic.co.uk
T: 01527 511 726

Energy Intelligence Centre

John Dawson
Trading and Market Intelligence Manager
E: john.dawson@eic.co.uk
T: 01284 718 119www.eic.co.uk

Sustainable Business Network

Welcome to Portals

Sharon Ball
portalspaper.com

CONFIDENTIAL

Sustainable Business Network

Our gas supplies – a brief look orWhyhavegaspricesincreased so much?
• In 2021,
Rough gasstoragesite closed.
• Its closure was not expected to impact
security of supply, however• lower than expected renewables
supply• higher than expected gas demand• Coupled with less available storage• led to higher than expected costs forsupply.

CONFIDENTIAL

Sustainable Business Network

How do I protect my business from these significant
increases
inneedgas
prices?
• Change when yougas (forheating, drying?)• Insulate or conserve what heat youhave• Reduce the amount of heat needed tocomplete the job?

• Long term, can heat be provided with adifferent fuel supply?

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Sustainable Business Network

Electricity Supply

23

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Sustainable Business Network

TODAY

National Grid Electricity by Source, and CO2 emitted

Source: Gridwatch.co.uk
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CONFIDENTIAL

Sustainable Business Network

TODAY

National Grid Electricity by Source, and CO2 emitted

Source: Gridwatch.co.uk
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Sustainable Business Network

How can I protect my business frombeing impacted by the current fuel crisis?

How can I protect my business from thecurrent situation?
•• Fuels: Switch fuels – is switching fromgas to electricity an option that is costeffective and greener/cleaner?

Costs:• Hedging contract?
• Lower your demand when on higher
tariffs? Allow the supplier to lower
your power supply (with notice) whenin high demand to then return it when
low cost. Could your business beflexible with supply?

• Electricity: Switch electricity suppliers
who can provide a greener/cleaner
portfolio• Direct supply: Go for renewables – solar
pv direct supply• Battery storage options?

• Community hub?

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Sustainable Business Network

How do we communicate and engage people to domore, do better?
• A hub with links
to news items onwhat we aredoing• A suggestion
scheme• A place to go tofind out more –links with thecommunity,sector, region?

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Sustainable Business Network

What keeps you up at night?

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• Resources:

www.ofgem.gov.uk
Energy trends - GOV.UK (www.gov.uk)
www.gridwatch.co.uk
Sustainability | Sustainable Overton | Climate ChangeHome - Portals (portalsinternational.com)

Thank you for your timeQuestions?

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LoCASEThe Low Carbon Across the South andEast programme
Alison Marsh & James Traynor
LoCASE Project Team

Introduction to LoCASE | 4 March 2022

What this presentation contains● What is LoCASE?
● Who’s delivering it?
● How does it support SMEs?

● What does it fund?
● Who’s eligible for support?
● What does it look like (case studies)?

● How long will it last?
● How do I apply?

What is LoCASE?
• An EU-funded business support programme that supports theshift toward a low carbon economy:

Stimulating
DemandSupporting
SupplyEncouraging
Innovation• Adoption of low carbon solutions to improve energy efficiency• Development of supply chains for low carbon goods and services• Innovation and collaboration with knowledge partners/universities

Where does LoCASE cover?
LoCASE works in 4 Local Enterprise Partnership areas in the South and East.

1. EM3
2. Solent
3. C2C
4. SELEPWho are LoCASE in Enterprise M3?

Who are LoCASE in the Solent area?

Who are LoCASE in the Coast to Capitalarea?

Who are LoCASE in the SELEP area?
Kent County Council
Lead Partner – Accountable Body
East Sussex County Council
Project Partner
Essex County Council
Project Partner
Southend-on-Sea Borough Council
Project Partner
Thurrock Council
Project Partner
University of Brighton
Project Partner and Innovation Lead

Types of Support
Financial support• SME grants awarded at an intervention rate of 40% (ERDF)
and 60% (private sector)• £10,000 cap on grants (and minimum grant of £1,000)
Non-Financial support• Needs assessments/energy audits for SMEs
• Sector-based business engagement and networking events• Access to training programmes - Steps To Environmental
Management (STEM)• 1:1 business support to develop the renewable sector

What can LoCASE fund?
Funding from LoCASE (40% of eligible project costs) may be used to cover thefollowing types of expenditure for SMEs:• Energy Efficiency Measures: including energy efficient heating, lighting,insulation, refrigeration, investment in renewables, machinery upgrades.

• Transport Efficiency: including second-hand Ultra Low Emission Vehicles(ULEVs), sustainable travel planning and fleet management software.
For businesses offering low carbon/environmental goods and services:• Development Costs: including marketing, new IT hardware and systems,materials for R&D, website development, certification and accreditation.

• Plant and Machinery: re-tooling and installation of new or replacement
machinery and hardware upgrades.

• Consultancy Costs: such as marketing and business planning consultancy

Are you Eligible?
To be eligible for a grant, businesses must:• Meet SME criteria: employ less than 250 people; annualturnover less than €50 million; balance sheet less than €43m.

• Spend the grant fully on a project taking place within the LEParea.

• Secure 60% of the costs of the project in cash from private
sector sources.

• Not be engaged in a restricted sector (detail on next slide)• Not exceed the de minimis state aid limit (€200,000 over threeyears) - or be in a position to exceed this once approved.

Restricted sectors
The organisation must not be part of the following
sectors:• Fishery and aquaculture• Primary production, processing and marketing ofagricultural products• Coal, steel and shipbuilding sectors• Synthetic fibres sector• Establishments providing generalised (school age)education• Banking and insurance companies.

Example case studies

LED lighting: Thanet Indoor Bowls

Solar-powered access system

How long have we got?

The LoCASE programme runs until June 2023
ACT NOW AND BE PART OF IT!

The LoCASE Partnership
The Low Carbon Across the South and East Programme has been
funded by the European Regional Development Fund 2014-20.
It is a partnership between the:Kent County Council, Basingstoke & Deane Borough Council,
East Sussex County Council, Essex County Council,
Isle of Wight Council, Portsmouth City Council,
Rushmoor Borough Council, Southampton City Council,
Southend-on-Sea Borough Council, Surrey County Council,
Test Valley Borough Council, Thurrock Council,
the University of Brighton, the University of Portsmouth,
West Sussex County Council, and Winchester City Council.

If you want to learn more…
Visit the Low Carbon Across the South and East website:www.locase.co.uk

Q&As Sessionwww.locase.co.uk