Funding for Energy and Resource Efficiency

Posted by on Oct 18, 2017 in Blog, My Book | 0 comments

Survey after survey** of energy management professionals show that a lack of resources is the most commonly cited cause for rejecting investments in energy and resource efficiency projects.

At the same time, the International Energy Agency’s World Energy Outlook 2012 reported that for their “Efficient World Scenario” that “Additional investment of US$11.8 trillion in more efficient end-use technologies is needed, but is more than offset by a US$17.5 trillion reduction in fuel expenditures and US$5.9 trillion lower supply-side investment.” 

Clearly, a key to success in achieving a more efficient world is down to our ability, as efficiency practitioners, to obtain funding.

The excuse given by decision-makers that “we don’t have the money” is rarely true. If we are honest with ourselves, this response is often due to our own inability as practitioners to create a sufficiently compelling business case – one that addresses the many non-financial barriers that exist. My 840-page book on energy and resource efficiency is largely dedicated to sharing my own experience of these barriers and how they may be overcome:

  • By properly quantifying the value that efficiency generates (e.g. dealing with hidden and missing costs, and valuing co-benefits)
  • By understanding structural barriers (such as split incentives, irreversibility and term issues)
  • By addressing psychological barriers (sunk costs fallacies, loss aversion, certainty bias etc.)

But let’s, for a moment, assume that there really is an availability barrier – i.e. no money.  What then? Well, my book also describes 12 methods, in addition to conventional outright purchase, which can fund efficiency projects. Click the link below for a poster setting out the financial flows, pros and cons of these methods.

For a practical, comprehensive exploration of these challenges, please do download the free PDF of the book available on my website, which also describes each funding technique shown in the poster in detail. The book is full of real-world case studies and useful techniques that can help efficiency practitioners in any organisation, small or large.

In time decision-makers will gain appreciation of the great skills and value that our profession brings to organisations and communities. Indeed it us – efficiency practitioners – who are the key to solving the major challenge of our age: “how to do more with less”. Please do share this link with others to spread the word and share the knowledge.


** see for example: Prindle, William, and Andre de Fontaine. A Survey of Corporate Energy Efficiency Strategies, ACEEE Summer Study on Energy Efficiency in Industry 5, 13 (2009) or Institute for Building Efficiency. 2013 Energy Efficiency Indicators (2013)

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Why I remain optimistic.

Posted by on Aug 4, 2017 in Articles, Blog | 0 comments

Several pieces of news have caught my attention in the last few days which have challenged my generally positive outlook on climate change issues. Despite this, I remain stubbornly optimistic about our ability to rise collectively to the challenges we face, as I will explain…. first though, the bad news…

 

Let’s start with the report from the BBC of a recent study by  Eun-Soon Im, Jeremy S. Pal, and Elfatih A. B. Eltahir. This considered an aspect of global warming which, I must admit, has passed me by – that is the impact of temperature on human survival. Not, I hasten to add, the conventional “dry bulb” temperature measurement we are all familiar with from weather forecasts (and which are hitting all-time highs in Europe in the last few days, in excess of 43 °C in Cordoba, in the south of Spain, for example) but rather the more esoteric “wet bulb” temperature.

This measurement is the lowest temperature that can be achieved by evaporating water from a surface. In a low humidity environment, the wet bulb temperature can be considerably lower than the dry bulb temperature (as heat energy – aka latent heat – is needed to evaporate the liquid water, so lowering the temperature of the surface). As the moisture in the atmosphere rises, however, the potential for further evaporation decreases and so the wet bulb temperature approaches the dry bulb temperature until we reach 100% humidity, when both temperatures are the same.  

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Debating climate change sceptics and the irrational decision by Donald Trump

Posted by on Jun 2, 2017 in Articles, Blog | 0 comments

I want to share an argument that I have used on many occasions when faced with audiences who are yet to be convinced about climate change. This is summarized by the diagram below.

 

This illustration reflects, in the columns, the positions that folks adopt about climate change. Some think that it is real, others not. Of course, we cannot change these columns, one will be prove to be right and the other will be wrong.

The rows, on the other hand, reflect the choices we make. We have two choices, A or B – either we take effective action on climate change, or not. That choice is under our control.

Clearly, we want to avoid the red box – where life as we know it comes to an end. Thus the only rational choice is “B”, to take action on climate change, despite some uncertainties about the consequences of inaction.

President Trump’s announcement of the US withdrawal from the Paris Climate Agreement made in the Rose Garden of the White House yesterday unambiguously represents Choice A.

The statement Trump made justifying this decision relies on two central arguments, which are understood by reference to the table above.

First is the argument that the Paris Accord is not Choice B (i.e. it will do little for climate change). To quote.

Even if the Paris Agreement were implemented in full, with total compliance from all nations, it is estimated it would only produce a two-tenths of one degree — think of that; this much — Celsius reduction in global temperature by the year 2100. Tiny, tiny amount.

Indeed, as the PolititFact site clearly elucidates, there is some truth in this statement. Scientists and climate change advocates have also been very clear that the commitments made in Paris were not enough. But they did see Paris as the framework through which countries could tighten their commitments over time. Indeed, Paris was a real milestone in that developing countries, too, agreed to targets for the first time. So saying that the first step is not enough is not an argument for stepping backwards.

The reader will note that there is no downside portrayed in the bottom left box, where dangerous climate change is not real, but we have nevertheless substantially transformed our organizations to reduce emissions and adapt to rising temperatures. While individual businesses, such as the coal industry, may well see a substantial reduction in their value unless they change the core business model, the majority of organizations will gain from resource efficiency to address climate change. That is because using less energy and creating less waste reduces costs. Delivering more efficient products will provide a competitive advantage. The new technology gold rush to mitigate carbon emissions will create countless business opportunities and thousands of jobs. Anticipating rather than reacting to regulation will create greater degrees of freedom for business operations extending, rather than diminishing, their licence to operate and innovate.

The second, essential, strand in the narrative of denial is to dismiss the notion that the lower-left box will lead to a better world even if climate change does not exist. Unless the fact that action is detrimental can be established, the precautionary principle would suggest that Choice B should be taken even if the probability that climate change is real (since the consequence of climate change is so catastrophic). To quote again.

The Paris Agreement would result in “lost jobs, lower wages, shuttered factories and vastly diminished economic production.

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Why I am giving away six years work – free PDF of Energy/Resource Efficiency Book

Posted by on May 27, 2017 in Blog, My Book, News | 0 comments

I have had some kind feedback about my decision to give away a free PDF of my two-volume book on energy and resource efficiency, which sells for £59.99 (US$79.99) in print. Several people have commented on just how much work must have gone into the book and how useful it is for anyone in the energy and resource efficiency field. It is true that I have invested a lot into this book – over six years of weekends, evenings and holiday time writing the book between my “day job” as a consultant and Sustainability Director. And there are the direct costs in editing, images etc – which are not inconsiderable.

In some cases colleagues have asked me outright why on earth I am giving away such a valuable resource. There is puzzlement because folks who know me, know that I have quite a good “business head”. So I feel that I owe people an explanation.

The reason I am giving away my book is that I passionately believe that my profession – energy and resource efficiency practitioners – are central to solving one of humanity’s biggest challenges – how to do more with less. Over the years, I have observed that fellow practitioners often have great resources and knowledge about the technical or engineering aspects of their craft – but that there is virtually nothing that explains, with honesty, how to deal with the strategic, organisational, managerial, behavioral, financial and communications aspects. In fact, the plethora of self-congratulatory case studies from organisations would lead one to conclude that this efficiency stuff is easy.

I am giving away my book because I want to help my colleagues, because I am concerned about climate change and biodiversity, because the better we are at what we do, the better world we will leave for the next generation.

I don’t pretend to have all the answers in the book, but I do believe that there is much to support colleagues, and to train and enthuse the next generation of practitioners. I have been very lucky – I have worked for some outstanding clients in some remarkable programmes all over the world, alongside some truly amazing colleagues. Its time to give something back!

So how can you help? First of all please do share the PDF and the link to this blog (bit.ly/2qtzKPP) – the more folks that make use of the book the better. Second, if you have suggestions for improvements, additions or if you spot errors please do let me know – I am totally committed to getting the contents right.

Finally if you are old-fashioned, like me, and you absolutely must have a printed copy of the book, please order it through my store rather than elsewhere – I have deliberately priced the printed book at the lowest level possible, which means that when the retailer takes their minimum required 40% commission on the sale price, there is virtually nothing left. That is deliberate – this book is not a money-making project! However, by ordering the book through my store, that 40% contributes towards recovering some of the publication costs and towards future revisions and (possible) future books. There is a free shipping option to most countries and ordering through my site is the most sustainable way of shipping as each book is individually printed on demand and sent directly from the printer to you (there are no additional journeys to warehouses etc).

Above all please do use the book! You can get the free PDF here – simply select the free PDF on the left, add it to your cart, and checkout as normal.

Hopefully, there is something there to help us all do more with less.

All the best,

 

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Free PDF of “Energy and Resource Efficiency without the tears”

Posted by on May 21, 2017 in Blog, My Book, News | 0 comments

I am absolutely delighted to announce that the two volumes of my book on energy and  resource efficiency have now been published as a single book.

As part of SustainSuccess’ contribution to sustainability the book, all 840 pages, is being made available FREE, in the Adobe PDF format.

I have been humbled by the outstanding reviews that leading folks in the efficiency world have give to the book:  

  • …the definitive source or making sense of energy efficiency and all of its attendant benefits.” [Christopher Russell –  Visiting Fellow, Industrial Programs,  American Council for an Energy Efficient Economy,  author of “Managing Energy from the Top Down“];
  • For anyone interested in a practical guide to improving resource and energy efficiency, this is the one and only book you need to own” [Dr Steve Fawkes – Managing Partner, EnergyPro, author of “Energy Efficiency“];
  • A very practical book which covers all the bases for practitioners and students of energy and resource efficiency alike. [Tim Sullivan – Director Energy & Property Compliance, Rolls-Royce.];
  • An authoritative and comprehensive book that will help any organisation justify and implement an effective energy and resource efficiency programme [Ray Gluckman – former President of the Institute of Refrigeration]
  • Niall Enright has produced a remarkably comprehensive manual for energy efficiency, which combines high-level insights and practical tips for developing and implementing projects and programs” [Donald Gilligan – President NAESCO]

You can get the free PDF easily. Simply go to the store, add the book to your basket and check-out. You will not be charged for the book, and on completing the check-out process, will received a download link to the PDF (17 MB).

The combined print version retails for £59.99 in paperback and £79.99 in hardback – including free postage options to most markets. The print versions also include free access to the companion files, for which there is a very modest charge for PDF version readers.

Please do feel free to:

  • Share the link to this post on your own social media pages. The shortened link is: http://bit.ly/2rqzfL7
  • Share the PDF with others (although it is better that folks download the file from the shop as they can be informed about updates to the text or additional materials)

Please don’t hesitate to give me feedback on the book. The beauty of print on demand (and PDF) is not only that this is a resource-efficient method of publication but also that the content can easily be updated regularly. You can also award the book between 1 star and 5 stars in the store, so please do come back and give it a rating!

All the best,

Niall Enright

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Feeback

Posted by on Apr 6, 2017 in My Book | 0 comments

Please feel free to add feedback on my book (positive or negative!) by clicking on the heading “Feedback” and then adding comments in the box below….. Unless otherwise requested, I may quote positive reviews received….. 🙂

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Kind endorsements received

Posted by on Dec 4, 2016 in My Book | 0 comments

For anyone interested in a practical guide to improving resource and energy efficiency, this is the one and only book you need to own.” – Dr Steve Fawkes, Managing Partner, EnergyPro, author of “Energy Efficiency

A very practical book which covers all the bases for practitioners and students of energy and resource efficiency alike.” – Tim Sullivan, Director Energy & Property Compliance, Rolls-Royce.

Niall Enright has produced a remarkably comprehensive manual for energy efficiency, which combines high-level insights and practical tips for developing and implementing projects and programs” – Donald Gilligan, President NAESCO

An authoritative and comprehensive book that will help any organisation justify and implement an effective energy and resource efficiency programme” – Ray Gluckman, former President of the Institute of Refrigeration

“Niall Enright’s ‘Energy and Resource Efficiency: Without the Tears’ may be the definitive resource for making sense of energy efficiency and all of its attendant benefits. Niall resists issuing imperatives or moral ultimatums. Instead, he begins with the practical wants and needs of decision-makers, and shows how energy efficiency satisfies those priorities. Accordingly, the reader is rewarded with discussions of investments instead of costs, solutions instead of projects, and opportunities instead of distractions. A timely alternative to searching through thirty years worth of literature.” Christopher Russell, Visiting Fellow, Industrial Programs,  American Council for an Energy Efficient Economy,  author of “Managing Energy from the Top Down

I am deeply humbled that such experienced practitioners  – people who I greatly admire –  have felt able to give such a positive judgement on this work.

Thank-you!

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Book proofs arrive!

Posted by on Oct 10, 2016 in My Book, News | 0 comments

Very early proofs of the book Niall Enright has been working on for six years have now arrived!

img_2594img_2589

The opinions of colleagues and family have been sought on whether to publish the print edition as one volume or two. The advantage of 1 volume  is:

  • There can be a single index so that all references to a topic are in one place
  • Internal cross-references make better sense as the two volumes are closely linked
  • The cost will be lower than for two separate volumes

 

The disadvantages of the single volume approach are:

  • Only the lightest paper can be used for the paperback version (so there is some “show through”)
  • It is heavy, so no exactly a cover-to-cover read, more of a reference book.

It is now looking very much like the publication date will be in Q2 2017.  The intention is to release a free PDF. The print copy will be published via IngramSpark which is the most resource-efficient method of publication since they print in three continents (so the shipping distance will be minimised) and only the required number of books (1+) are produced so waste or “pulping” of unsold copies will be eliminated.

See the section on My Book for more details.

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ESOS Services now available

Posted by on Oct 5, 2016 in News | 0 comments

SustainSuccess can now offer ESOS lead assessor services. The Energy Savings Opportunities Scheme is the UK implementation of the EU Energy Efficiency Directive, which requires large organisations to have a formal energy audit every four years, overseen by a certified assessor.

esoscertificate_small

The rationale behind the regulations is that there are many cost-effective energy efficiency opportunities that are not being implemented simply because organisations are unaware that they exists. By mandating that the audit results are presented to senior management, the hope is that projects will receive support. As with all regulations, some organisations will adopt a “least cost to comply” approach, while others will see this as an opportunity to add value by carrying out audits that uncover value by employing expert auditors capable of identifying cost-effective opportunities. Needless to say SustainSuccess will be offering the latter approach.

It should be noted that there is an alternative approach to compliance by implementing an ISO 50001 certified energy management system, like the one SustainSuccess implemented at Peel Holdings.

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MACCTool launched:

Posted by on Jul 14, 2016 in News | 0 comments

1_mactool_new_172x72SustainSuccess are delighted to announce the launch of the World Bank’s Energy Sector Management Assistance Programs’ MACCTool. Niall Enright was the lead developer of this innovative and powerful application to draw Marginal Abatement Cost Curves, a key tool for organisations and policy-makers seeking to understand potential paths to decarbonisation.

The lead on the client side was Victor Loksha, a Senior Energy Economist, with input from Martina Bosi, Perre Audinet, Grzegorz Peszko, Adrien Vogt-Schilb and many others. The project was led by ERM’s Peter Rawlings and Braulio Pikman, supported by Sandra Seastream, Wairimu Mwangi and additional Excel development by James Joyce and Calvin Iost. This project was a major redesign building on an earlier version of MAC Tool, developed by Andreas Mastle and led by Christophe de Gouvello at the World Bank.

MACTool is a remarkably powerful MACC creation tool. Unlike MACC Builder Pro, which simply draws MACC Charts, MACCTool provides inputs for multiple cash flows in a project and will calculate the Marginal Abatement Cost and emissions abatement values given these inputs. Features provided by MACTool include:

  • Separate cash flows for a Baseline and Low Carbon Case. These cash flows can be created from “templates” designed for different sectors so that a generation technology, for example, can have a Revenue cash flow from the sale of electricity. The templates can be modified by users and re-used.
  • An intuitive interface that takes away the complexity of the underlying model and allows the user to manage many different projects using a
    pop-up Navigator.
  • The ability to categorise projects by sector/technology, SIC code, or region.
  • MACC charts can be set to show an overview of each category which can then be “drilled down” to show individual projects within the category.
  • Complete flexibility over the discount rates used so that these can apply at the model level, by sector or globally. The option to discount the abatement term, if desired (see the discussion on the previous page), using a separate discount factor.
  • A lot of attention has gone into bringing the key assumptions for all the projects into a single table which allows for rapid validation and error checking. Models can have an “in progress” status which means they are not included in totals until they are marked “complete”.
  • The ability to chart Investment Costs, Investment Intensity and other financial metrics, not just the Marginal Abatement Cost.

As one would expect from a very knowledgeable team of economists at the World Bank, the flexibility and capabilities of MACC Tool are truly staggering with the ability to use multiple currencies and to run cases also built into the system.

One metric that appears as standard in the templates that ship with MACCTool is the Breakeven Carbon Price. This is based on the notion that while there may be an overall market discount rate set which takes into account the cost of capital in an economy, private investors will expect a generally higher rate of return. Thus the Present Value of a project can be worked out using the desired rate of return rate, such as 20%. If the project PV is negative it means that it has made a loss, so MACCTool will then calculate the additional incentive in $/tonne CO2 that is needed to deliver the percent target return needed by the investor. Neat!

Another innovation in MACCTool is the wedge-MACC chart. An example of this chart is shown below.

wedgemacc

The chart above is taken from an analysis of Costa Rica’s emissions abatement opportunities prepared in advance of the Paris UNFCC Summit in 2015 (COP21).

On the left is a normal wedge chart showing the emissions abatement per year from a range of different projects/technologies. Because these are added together the height of the chart is the cumulative total. Well, we know that a MACC chart also shows a cumulative total along its horizontal axis, so if we rotate the MACC vertically, as shown on the right hand side of the image, we can see the MAC for each opportunity in ascending order from best return to worst return with the height matching the total saving at the end of the analysis period. This combined wedge-MACC chart was first described in a paper by Adrien Vogt-Schilb, Stephane Hallegatte and Christophe de Gouvello at the World Bank.

The team at ESMAP and the World Bank have made MACTool freely available at http://esmap.org/MACTool and would welcome feedback from users. There is a handy guide on how to set up your first model, which users are strongly advised to work through prior to leaping into the tool. It is also worth mentioning that I have worked with Pedzi Makumbe from ESMAP and Braulio Pikman on another ERM project to deliver a different Excel based tool called TRACE which looks at the potential for municipalities to reduce energy use by selecting relevant opportunities across numerous sectors.

 

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