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Universities Can Cut Energy Bills, and Carbon Emissions, through Decentralised Energy
Cash-strapped universities in the UK could now save hundreds of thousands of pounds in energy costs annually, while cutting carbon emissions and increasing their security of supply, by generating some of their electricity locally.
Furthermore, through the use of Energy Service Companies (ESCOs) the investments required today can be paid for by the future savings they will generate.
“If the right technology is applied correctly, it really is win-win-win,” says Paul Lewis, CEO of Self Energy UK, the first UK ESCO to focus on decentralised energy. “By partnering with universities to provide the necessary funds and expertise, we can help save money, reduce emissions and secure future energy supply.”
“With the issues surrounding the Carbon Reduction Commitment high on agenda, many universities don’t realise that decentralised energy could be a winning solution, and improve the bottom line directly”, Lewis said.
Universities are some of the UK’s largest users of energy. Hot water in halls of residences, large lecture theatres, swimming pools, temperature-controlled research labs and computer server rooms all add up to make the average UK university fuel bill well over a million pounds.
10 000MW CHP by 2010
Decentralised energy falls into two main categories: renewable energy, such as wind and solar, and Combined Heat and Power, or CHP.
A CHP engine is essentially a small scale power plant: it (usually) takes standard natural gas as input, and generates electricity and heat. But rather than waste the heat, as gas-fired power stations do, the CHP engine can be designed to heat (and cool) buildings, as well as provide them with electricity.
This permits overall efficiencies of up to 90%, compared with 40% for typical gas-fired power stations.
CHP is an important element of the Government's energy policy, with plans to double the UK’s CHP capacity by the end of next year. Just over 5000 MW of electricity is generated using CHP today, and the Government wants 10,000 MW of installed capacity by 2010.
Furthermore, the Carbon Reduction Commitment, a mandatory scheme to promote energy efficiency that will affect users of 6000 MWh energy per year, will begin in 2010. This is likely to affect most UK universities and several larger schools, and non-compliance could mean fines of up to £50 000 or two years in prison.
While the credit crunch has meant many energy and carbon-saving plans have had to be put on ice, Self Energy UK hopes to partner with universities and schools to help fund the required investments.
“There are several consultancies that now offer carbon or energy audits,” says Lewis, “but very few with money to invest to make the reductions actually happen. That’s where we come in.”
Blackouts
Although carbon emissions are currently higher in the public’s mind, security of supply could come to play an increasingly prominent role in energy sourcing decisions.
Recently, the UK press reported that blackouts could be a regular feature of UK life within just five years as old coal power stations are closed. A university that generates its electricity locally through CHP would be far less reliant on the national grid, and hence avoid power cuts.
Self Energy UK is the UK’s first decentralised energy-focused Energy Services Company, with clients ranging from the hotel industry and media to schools and universities. Self Energy UK is part of the Self Energy Group, which is headquartered in Lisbon and is active across Europe.