Yes Prime Minister.

Number 10. Prime Minister’s Office. 17th February 2019.

Prime Minister at her desk, prepping for PMQs. Enter Private Secretary.

PS. Prime Minister, the children are going on strike.

PM. Which ones? Labour or our lot?

PS. No, no Prime Minister, the school children. They’re going on strike.

PM. Oh for goodness sake! Isn’t there already enough to be worrying about? What are they going on strike for?

PS. They’re having a day of strike action in protest at the lack of action on climate change.

PM. Are they allowed to do that?

PS. Well, strictly speaking no Prime Minister. But it’s difficult. If we ignore it then we’ll be seen as out of touch. If we register it and condemn it then we’ll be seen as reactionary and out of touch. And if we condone it then we’ll be seen as out of touch and over-reacting by the teaching establishment, who’ll accuse us of not appreciating the pressures they are already under and demand a review of the curriculum and resourcing.

PM. What do you suggest?

PS. I think it’s a one-liner from you to point out that the best way to prepare for the future is to study hard, and then send in Perry with a statement about how the UK is leading the world on intent and action.

PM. How can we be leading a lack of action? Isn’t that an oxymoron?

PS. Well strictly speaking it is Prime Minister. But to be fair, there is mileage in being seen to be doing not enough less slowly than everyone else. At the same time we could leak the latest overspend on the carrier budget to the Mail as a diversion and…

PM. Is there an overspend on the carrier budget?

PS. Well strictly speaking no Prime Minister. The ships are on budget, after strippages and adjustment by the Treasury. But there is a lack of provision for any aircraft.

PM. Banging head on desk. Oh goodness, goodness me!

PS. Well it’s not that serious Prime Minister. We can get some on eBay I’m sure.

PM. I’ve got an idea.

PS. Yes, Prime Minister?

PM. Isn’t it the case that sea levels are going to rise as a result of climate change?

PS. Massively, Prime Minister. Whole communities could be wiped out. South Thanet is looking particularly vulnerable.

PM. That’s a safe Tory seat.

PS. Indeed Prime Minister.

PM. This is more serious than I thought. How about this? Transfer the budget for the carriers from the MOD to BEIS and re-role them as climate change relief ships. That way they could operate usefully all around the world and won’t need any fast jets. And it would teach young Williamson a lesson for being so lippy with the Chinese.

PS. Yes Prime Minister. Inspired.

Schools Low-Carbon Programme

An initiative to achieve low-carbon energy installations for schools and other estates on oil, at the least possible risk and without the requirement for capital investment.

ReEnergise is currently contacting schools and rural estates that use oil for heating, to gauge interest in a new financing scheme that we hope will provide the catalyst for converting before the Renewable Heat Incentive closes for new installations on 1st April 2021. For now, we’ve called it the Schools Low-Carbon Programme because it’s been developed in response to feedback from bursars and school governing bodies about existing options. However, it would work equally well for any rural estates seeking to transition without needing to find the capital.

Since first publicising it in mid-December last year 6 schools and one rural estate have already indicated an interest.

The nub of the issue is that there is a clear conflict between the national need to transition to low-carbon energy systems over the next few years and the challenges and risks that schools face in seeking to transition: in particular, a lack of capital for this type of project and no desire to be tied into a long-term lease.

We want to encourage as many schools as possible to consider this concept seriously in the coming year. For clients it would provide:

  • The same or better levels of heat.
  • Reduced annual operating costs.
  • Budget security.
  • A lot less hassle with the heating.
  • Excellent sustainability credentials.
  • Confidence of value for money.
  • No need to find the capital or be tied to any long-term fixed lease repayments.

We will run each project on an open-book basis, at a level of profit agreed in advance.

If any reader is interested and has not already received a direct communication about this, please let us know and we’ll provide more detail.

We do believe this will prove a game-changer.

 

Trumpton: Episode 2. After Hurricane Harry

Mayor Trump has called a meeting in the market place. He is looking quite angry today.

‘Ahem. Some people here, bad people, have caused a trail of chaos and destruction in the town. It’s bad. Very bad. My new conservatory has been totally totalled. Gone. Not a conservatory anymore.’

Yes,’ said Mr Troop, the Town Clerk, who had been reinstated again and was learning to be a bit more mindful of who paid his wages. ‘The total bill for damages amounts to over £45, which is very serious.’

‘Serious,’ said Mayor Trump.

‘It was the b****y hurricane,’ said Chippy Minton, the carpenter and a known activist (trouble maker). ‘You’re smoking the wrong dope!’

‘My shop was flattened’ said Mr Clamp the greengrocer. ‘Fruit and veg everywhere, all mashed up.’

‘You could sell veggy smoothies now,’ said Mrs Minton.

‘Not funny,’ said Clamp.

‘I read a report by the UK Committee on Climate Change’ said Mrs Cobbitt the flower seller. ‘It said that we are already experiencing the symptoms of global warming and that it’s no coincidence that there are more hurricanes and fires and things now.’

‘Totally fake news,’ said Mayor Trump. ‘There have always been hurricanes and fires and bad stuff. Anyway, it snowed last week so how can there be global warming?’

‘Because,’ said Mrs Cobbitt, ‘warming causes more moisture in the air which leads to more extreme precipitation events. More snowing is just a symptom of that.’

‘I don’t believe it,’ said Mayor Trump, getting more orange, as he did whenever he was challenged and couldn’t get his way by bullying people. ‘Global warming is just a Chinese plot.’

‘Well global scientific opinion seems pretty unanimous about it now,’ said Mr Wilkins the plumber. He always kept himself to himself, so it was a surprise to hear him pipe up now.

‘I’ve been reading up on it,’ he said, as the others looked round at him with raised eyebrows. ‘We badly need to reduce our carbon emissions and clean up our act, or we’ll be in the doo-doo. I’ve started installing a heat pump in my house. It’ll work a treat, and the subsidies are fantastic. I’m actually going to save a lot of money compared to my oil-fired system.’

Miss Lovelace the Milliner started to see Mr Wilkins in quite a new light and moved over to stand next to him.

‘It’s a trap,’ said Mayor Trump.

‘No. I’ve had an independent assessment and it all stacks up,’ said Mr Wilkins. ‘Heat pumps are great. They’re clean; and the rate of subsidy is the best. It’s really going to help my bottom line.’ And he winked at Miss Lovelace.

‘Actually, we could set up a shared ground loop around the town and get lots of properties on it,’ said Mrs Cobbitt, who seemed to have become the local expert on these things. ‘The government is really keen on that now. It’s a good way for everybody to benefit.’

Mayor Trump was about to say something really quite rude, but luckily – as it was before 9pm – at that very moment the fire brigade arrived to rescue the town cat who had got washed up onto one of the roofs during the flood that came with the hurricane.

And the rest is history…

 

Trumpton: Episode 1. A spot of Local Unrest

Mayor Trump has called a meeting in the market place. He is looking quite angry today.

‘Ahem. Some people here, bad people, have posted a petition on the front door of the Town Hall. They say they want more action on climate change. Bad. Very bad. In particular they want me to close down the Town Hall’s oil-fired boiler and put in a new district heating system to serve the whole town on a heat network.’

‘Yes,’ said Mr Troop, the Town Clerk. ‘That would save everybody money; and make the air fresher; and the Government will help with subsidies. I’ve already done the business case.’

‘You’re fired,’ said Mayor Trump.

‘It’s true,’ said Chippy Minton, the carpenter. ‘I read it on the BEIS website. Subsidies are index-linked to the CPI and guaranteed: the more heat we use, the more the subsidy. It’s a great idea. It could save us all lots of money compared to the oil we’re on.’

‘Fake news,’ said Mayor Trump. ‘Bad. Very bad. They don’t know. You can’t trust what governments say.’ He was starting to turn rather orange now.

‘I read a report by the United Nations Intergovernmental Panel on Climate Change,’ said Mrs Cobbitt the flower seller. ‘It said that we need to get carbon emissions down to net zero by 2050 if we are to prevent irreversible damage to the environment, such as the destruction of all coral reefs, loads more hurricanes and large forest fires, and tens of millions of people being made homeless due to rising sea levels.’

‘I bet my shop would be one of the first to get washed away,’ said Mr Clamp the greengrocer. ‘It’s only stuck down with glue and was a last-minute rush job when the producer wanted more buildings on the set.’

‘I don’t believe it,’ said Mayor Trump, getting more orange than ever before. Secretly he was quite worried, because he had a house by the sea, but he wasn’t going to let on.

‘It was a last-minute job,’ said Mr Clamp. ‘It’s rubbish. You go inside and it hasn’t got any proper rooms at all.’

‘No – the UN report, I meant.’

At that moment Nibs Minton the apprentice and Miss Lovelace the hatmaker (who had a bit of a thing going on) started up a chant. ‘We want action and we want it now.’

Others started to join in.

Mayor Trump grew even more orange and his hair started to smoulder. But at that moment Mr Wilkins the plumber came running in to report that a fire had started spontaneously in Mr Clamp’s premises.

‘B****y typical!’ said Mr Clamp. He spoke a bit like Geoffrey Boycott.

‘Call the fire brigade,’ said Constable Potter.

And the rest is history…

The IPCC Report is Arguably the Author of its own Failure.

What we really need is Die Hard 2030 starring Bruce Willis in his most knife-edge car chase yet.

Two weeks ago I suggested that the IPCC report is partly to blame for the ambivalent reaction it has so far received in policy making quarters and the general disinterest in the popular press.

Outrageous suggestion? Read on.

I have no qualification to judge the scientific or economic merit of the IPCC report, nor would I dare. But it is not easy reading. The Summary for Policy Makers (SPM) – all 34 pages of it – is meticulously balanced and scientific in style. What’s wrong with that – it has to be doesn’t it? Yes, but this is intended to be a document which makes the observations more accessible for policy makers, and I don’t think it does that. Its very balance and absence of any theatrics does not bring to life the consequences of inaction in a way that will make populations and policy makers sit up and take note in the way that we need.

I’d suggest that what we need is text that paints a picture and offers some tangible and localised examples. E.g. ‘If we don’t get to net-zero carbon emissions by 2030 then Hurricane Michaels will hit the Eastern Seaboard of the USA at a rate of one a week during the hurricane season’… ‘Venice will be uninhabitable by 2035’… ’Majorca will be finished as a tourist destination by 2040.’  (I’m not saying that precisely these things will happen – it’s the nature of the language I’m trying to get across).

Instead what we get is language like this:

Limiting the risks from global warming of 1.5°C in the context of sustainable development and poverty eradication implies system transitions that can be enabled by an increase of adaptation and mitigation investments, policy instruments, the acceleration of technological innovation and behaviour changes (high confidence).

Did your eyes glaze over? Could it be more generalised and obtuse? Here’s another example:

A reduction of 0.1 m in global sea level rise implies that up to 10 million fewer people would be exposed to related risks, based on population in the year 2010 and assuming no adaptation (medium confidence).

See what I mean? The first extract is dryer than an extra dry Ryvita biscuit, and completely open to interpretation by those with vested interests. The second is precise and sounds serious enough. But again, it’s too easily ignored by policy makers. Which 10 million people are going to be saved? Which coastlines are going to escape devastation? Because if it’s not going to be in my backyard I don’t need to worry, do I?

The point is that this is disaster movie material starting to come true, before our very eyes, but it’s being portrayed with all the (absence of) drama of a parliamentary select committee session. (Sorry Ministers).

I suggest what we need from the IPCC now is a Summary of the Summary, with some graphic, localised examples that will make voters pay attention. Because if the voters ain’t moved, the leaders won’t act.

We need to get the Daily Mail fired up and Bruce Willis back behind the wheel for one more movie…Yippee-i-a Mr Trump.

 

Kevin Costner’s Waterworld Gets One Step Closer to becoming Reality

By now everybody must know that the IPCC published a report on Climate Change last week. The gist is that we really do need to keep the rise in average global temperatures down to only 1.5 degrees above pre-industrial levels if we are to avoid a lot of trouble; and to do that we need to reduce and limit carbon emissions, which will require ‘rapid and far-reaching transitions’ across the global economy of an unprecedented scale: in short, a sea-change in how we acquire and run global energy for human use. The report notes that we are already at 1.5 degrees in parts of the globe and already experiencing some of the effects.

I took time out to read the IPCC’s Summary for Policy Makers (SPM), all 34 pages of it. It’s not easy reading. If you want a helpful summary of The Summary by one Jeremy Leggett, go to this link https://jeremyleggett.net/2018/10/10/this-weeks-un-warning-of-climate-chaos-is-the-total-world-rewrite-they-say-we-need-doable/

Reactions have been interesting, to say the least, and in a sense those reactions tell us more about the challenge we face than the report itself.

Consider – this is a credible report by an international collection of experts. The future is grave indeed. I’d use the analogy that we are on the Titanic, we are going to hit the iceberg, the ship is going to sink, there are not enough lifeboats, and now the task is to work out how best to use the available lifeboats to save as many lives as we can. Or maybe cut up other parts of the ship as well to make more rafts.

Doesn’t look good. In response the responsible organisations already deeply concerned with the impact of man-made climate change have used it to reinforce their point. Perfectly reasonable reaction.

Many of them have also noted that the report shows that the drastic transformation required can be achieved in time to avert trouble. I don’t think so. Not because it’s not technically feasible; but because – to continue the analogy – the Titanic is commanded by 193 captains, with different languages, interests, codes of practice, etc, and a host of fare-paying passengers intent on carrying on having a party. Here are some examples and I’m sure you can see the inferences:

  • Most UK newspapers thought the Strictly Snog saga was more important.
  • The BBC covered it well enough the day it came out, but then in the coverage of Hurricane Michael and the Mallorca Storm on subsequent days failed to make any connection. Don’t we think these events might just be clues?
  • EU ministers met this week to agree vehicle emission reductions, but many of them hedged their bets and refused to endorse the levels proposed.
  • The boss of Shell, Mr van Beurden, agreed that it’s very serious; but instead of using it as a moment to announce how Shell are going to take a lead in developing low-carbon/low emissions alternatives he said that we’d need to plant forests equivalent to the size of Brazil, so that the CO2 from continuing use of high-carbon fossil fuels (oil and gas) can be absorbed.
  • Mr Trump is just, well… Mr Trump.

It’s not hard to see why this would happen, given that there is no precedent for all the nations of the world to work together to a common goal in times of adversity, except when half of them were working together to beat the other half.

Paradoxically, I believe the report is partly to blame, but I’ll offer a justification for that statement in another piece shortly.

 

♫♬ The Sun Ain’t Gonna Shine Anymore ♫♫

Remember that song by the Walker Brothers? Of course, it ain’t true – it’s gonna go on shining and shining and shining. What they should have written was that the Government subsidies for solar PV aren’t going to go on forever, but they couldn’t get the words to fit the melody so they compromised.

In fact the Government subsidy regime is closing for new installations on 1st April next year. I am talking about new here. So, that means that any estate that gets its solar PV registered with Ofgem before 1st April next year gets locked into receipt of the 20-year index-linked subsidy for every kWh generated or exported to the grid; whereas any estate that gets it done after 1st April next year gets no subsidy at all. It does make a difference to the net benefit.

A lot of schools and rural estates, with a bit of prompting from us, have recognised the significance of this and we are now working with them to get their solar installations done before the deadline. Over the Summer holidays we’re organising the installations at Repton College, Pocklington School, Solihull School and Barlavington Estate, and several others are in the pipeline for later in the year.

There’s quite of lot of detail to be worked through: assessing the estate for the best sites, scoping the right array for each site, securing local grid operator permission to install, tendering for installers, commissioning, registering the installations with Ofgem. However, recognising that most of our clients have neither the time nor the in-house knowledge, we arrange all of that.

If you’re interested, it’s not too late to make the most of free sunshine.

♫♬Don’t Let the Sun Go Down On Me ♫♫

Why ReEnergise is Rehearsing Shakespeare

ReEnergise is currently running a concerted campaign to raise awareness about renewable heat. For shameless attention grabbing in schools, the theme is Shakespearean and tongue in cheek. But the underlying rationale is perfectly serious. Here is the opening from Episode 5 just to give you a flavour.

Oh Romeo, Romeo, wherefore art thou Romeo?

Down here.

Oh Romeo…

Yes, my love? (Sigh)

My Father says we can’t see each other anymore.

What?! But…

He says nothing good will come of it.

It’s now Government’s policy to phase out the installation of high carbon forms of fossil fuel heating in new and existing businesses off the gas grid during the 2020s. Might seem a long way off, but it’s already relevant if you’re on oil and need to replace a boiler. Just consider the intended lifespan of that new boiler in the context of 2030…

Transferring to renewable heat usually saves a lot of money. Annual returns on investment can be as high as 20%, thanks to savings on the fuel costs and generous Government subsidies. The subsidies are index-linked to the CPI and last for 20 years. However, the heat subsidy scheme will be closing for new entrants on 1st April 2021. So, estates need to act soon, or risk having to switch after April 2021 without the support of the current subsidy regime.

Switching to renewable heating systems is not just a way to save money. There are clear sustainability and CSR benefits.

All types of renewable heat generate less NOx than oil, so air quality is improved. Quality of life is better: there is lots of evidence that when renewable systems are designed and installed correctly the quality  of the heating improves, both output and occupancy comfort.

Fuel price security is improved: our extensive modelling of differing fuel price and CPI inflation rates shows that the greatest financial risk is to remain on oil.

The best return on investment is achieved when the school or rural estate finance the programme. However, for those that don’t have a budget but want to act soon, we have a range of financing options that have evolved in the light of feedback from clients.

The renewable heat market has matured a lot in recent years and there are now several reliable options. We’ve yet to find a situation where one of them does not fit the bill. It’s usually more a question of which one best suits a specific estate.

There’s a good reason to be banging the drum.

New Government policy means it’s time to get estates off oil.

Recently declared Government policy is that oil is to be removed from the fuel mix for rural estates by 2030.

Seems a long time away, but we already know that the deadline for new systems to qualify for the current 20-year heat subsidy regime is 1 April 2021. The implication is clear enough: schools and other estates need to be getting any oil systems converted to low-carbon alternatives before April 2021, or take the financial risk of doing it after the subsidy regime has closed.

Schools, at least, need to start considering their options during 2018 or at the very latest during 2019, because switching from oil cannot be done in a hurry without incurring undue risk. The right technology needs to be identified, which means getting hold of some trustworthy impartial advice. The finance needs to be put in place, either from within or through a 3rd party, as subsidies only start once an installation has been commissioned and registered with Ofgem. And, for schools, the programme needs to be approved by the Governing Body, which in our experience is likely to take some months. After all, it’s a significant investment. The installation project is likely to take from 4 to 8 months, so all told the lead time is 1 to 2 years.

Working back from the April 2021 deadline, it rather suggests planning should start during 2018 or at the very latest during 2019.

It’s not all doom and gloom. The subsidies are helpful. All depending on the detail at the site, the value of the subsidy over its 20-year life could be as high as £1M or more. Likewise, the net financial benefit in switching to a low-carbon alternative could be well over £1M.

Here’s a chart we’ve shown before. It’s a relatively small ground source heat pump system, but do please take a look at the average return on investment and eventual net benefit figures in the Performance overview box.

Ground Source Heat Pump returns chart: Fandangle Hall School. (Results based on a real school estate. Wouldn’t it be great if there was a real school called Fandangle Hall). 

 

Renewables – A Minor Tragedy in the Independent Education Sector?

The Prologue.

Since we started working in the sustainability industry in 2010 we’ve talked to hundreds of independent school Heads and senior managers. Some common themes have emerged regarding the curbing of energy usage and getting off fossil fuels, and it has all the makings of a minor tragedy:

  • Senior managers are frequently concerned about excessive energy usage. Not everybody cares about saving the planet, but most people do want to reduce energy usage – because it’s expensive.
  • However, there are often more pressing tasks that get in the way of tackling excessive energy usage.
  • Furthermore, there are plenty of apparent reasons to drag one’s feet: people are confused about renewables and the related legislation; often they don’t realise how much money can be made from them; they think the subsidies are all finished; there’s that anecdotal local school that had a bad experience with a biomass; the market is confusing and hazardous, because there are so many options, so many suppliers, and so many vested interests; and so on.

Here’s the Tragedy…

Contrary to popular opinion, renewables are still an excellent Government-backed investment option. Returns on investment of 12-20% per annum remain typical, in the right situation. Renewables are now a mainstream part of UK energy provision. However, in the Education Sector, good opportunities to act are being lost through all the reasons discussed.

It’s not all bad: several schools are embracing the opportunities presented. Nonetheless, the majority are not.

Here are two examples to show you why it’s well worth finding out more about renewables within the UK, and finding a way to take the plunge…

 

Solar PV returns chart: Fandangle Hall School

The chart above shows the returns on a typical solar PV installation in a school:

  • The initial investment – the installation cost – is £33,000. (This could be funded in other ways if the school did not have the cash to spare).
  • The saving comes from using as much as possible of the solar power generated on site, so that there is the highest possible reduction in power purchased from the grid.
  • Plus, there is the substantial revenue from the two categories of subsidy.
  • Over 20 years, which is the life of the subsidy, there is a net benefit of around £110,000 or 22%.

If you walked into a bank and told them that you could offer investors a return of 22% on their investment, and it was backed by the Government – they’d laugh. Yet this is what we have here.

 

Ground Source Heat Pump returns chart: Fandangle Hall School

The chart above is an example of a heat generating technology: a Ground Source Heat Pump. Never mind how the technology works – that’s for another day. Please note the return on investment.

So What?

Most schools will have several places where they could install renewables in order to generate pockets of longer term revenue. The idea is not to welcome with open arms the first renewables installer who comes through the gate. Due diligence remains essential. But I’d suggest that every school should have a plan – linked to the map of the estate – which shows which technology could best be used in each location, with the cost versus benefit noted alongside it. And then work steadily through the implementation. If you’re not sure how to do this, just seek independent advice.

It will be time and money well-spent.