1.
Robert Blackie, Foaad Tahir, Jun Xing, Ruel Brathwatie, Guangrui Xiao

2.
This work has been undertaken as part of a student educational project
and the material should be viewed in this context. The work does not
constitute professional advice and no warranties are made regarding the
information presented. The Authors, Judge Business School and its
Faculty do not accept any liability for the consequences of any action
taken a result of the work or any recommendations made or inferred.

3.
 Background
 General study
 Regulations
 Renewable technologies
 Case study
 Grosvenor House
 Duke’s Wharf
 Conclusion
 Recommendation
 Constraints and risks

4.
 Government’s energy strategy
 Annual CO2 penalty charges
 Requirements of new and existing
properties
 Expectation from existing and future
tenants
 Opportunity for energy strategy
 Potential Revenue
 Improve company image and
marketability ( tenant’s green agenda)

5.
 What are the market
opportunities for
implementing small
scale renewable energy
production?
 How supportive is the
market place to the
purchase of small scale
renewable energy
production?

6.
Case Study  Legislative
 Grousvenor House • Is it legally compliant?
 Duke’s Wharf
 Technological:
• Is it feasible?
• Is it efficient?
 Financial:
• Is it affordable?
• Is it profitable?

7.
Most of the
information was
gathered from online
sources.
Some data are
provided by the client.

8.
Incentives
 Renewable Obligation Certificates (ROC)
• ROC Trading: valued at ₤51.81 and sold at ₤35.76
• Banding of ROCs
• Buy-out fund: %age of total ROCs received at ₤18.59
 Enhanced Capital Allowances (ECA)
• 100% on taxes refunded
• Loss :19% capital cost deducted
• Profit: 20% taxable capital cost

9.
Penalties
 Carbon Reduction Commitment (CRC)
• Carbon allowances are purchased at ₤12/tCO2 (2010 – 2013)
• Carbon cap introduced and allowances increase to
₤16/tCO2 as of 2013
• CRC League tables in 2012
 Climate Change Levy (CCL)
• Tax of 0.456p/kWh

10.
WIND TURBINE
Wind turbines are the most widely used renewable energy technology
It presents the best solution to mitigate CO2 emissions
cumulative capacity reached 120.8 GW at the end of last year
supplying around 260 TWh of electricity
VERTICAL AXIS
HORIZONTAL AXIS

11.
CHP (Combined Heating and Power)
 The simultaneous production of useful heat and electricity .
 The conversion of primary fossil fuels to electricity is a relatively
inefficient process.
 Even the most modern Combined Cycle plants can only achieve
efficiencies of between 50–60 %.
 The very best CHP schemes can achieve fuel conversion efficiencies of
the order of 90%.
Efficiency gains of CHP

12.
SOLAR PHOTOVOLTAIC CELL
 A solar cell or photovoltaic cell is a device that
converts solar energy into electricity by the
photovoltaic effect.
 Assemblies of cells are used to make solar
panel, solar modules, or photovoltaic arrays.
SOLAR ANGLES
 The solar altitude angles vary not only during
the day but also during the year.
 At noon the Sun is at peak altitude angle of 38o
at spring and autumn equinox, while it is at 60o
at summer solstice and at 12o at winter solstice.

13.
Grosvenor House
Key Facts
-energy consumption:
1,724,830kWh
-annual CO2 emissions: 624tonnes
-total floor area: 4,566sq.m
-

14.
GH
With Without
Daikin VRV Daikin VRV
Wind
Solar CHP
Turbine
Natural Biogas
Gas CHP CHP

15.
 Average heating value of 260 kW (12 hour / day heating requirements for 200 days / year).
 Two Daikin REYQ-P8-48 systems.
 Extra amount of electricity required would thus be 753,264 / 3.94 = 191183 kWh.
 Total electricity requirement for Grosvenor House : 1134638 kWh / year.
Quality morden
office accommodation

16.
Characteristics 50kW
Installed Cost(£) 100,000
Output(kWh) 146,115
Total Annual Revenue (£) 2010‐
2013 19,261 20,743 22,227
2013‐ 19,582 21,065 22,548
Estimated payback (yrs)
5.4 5 4.4
Whole life net revenue
320,334

17.
 Roof area : 600m2.
 Annual solar intensity value:1100kWh/m2
 50% roof area usage
 Available solar energy: 330,000kWh
 Thin film technology
 Operating efficiency :14.6%
 Capacity : 45kWp
 Annual energy generation :48,180kWh
 CO2 savings: 26,499 kg.

18.
Characteristics 45kW Nanosolar PV
Installed Cost(£) 31,638
Output(kWh) 48,180
Total Annual Revenue (£) 2010‐
2013 9,020 10,411 10,900
2013‐ 10,026 10,517 11,006
Estimated payback (yrs)
3.5 3.2 2.9
Whole life net revenue
237,296

19.
 Annual energy requirements: 3,827,929 kWh of electricity and
879,227 kWh of heating.
 300 kW CHP plant would be operated at a Power: Heat ratio of 1
 Fuel requirements: Natural gas 221,699 m3 , Biogas 350,624 m3
 CO2 emission reduction of 228,600 kg.

20.
Characteristics 300 kWe Gas turbine CHP
Installed Cost(£) 160,182
Output(kWh) 943,455
Total Annual Benefit (£) 2010- 54,284 63,667 73,436
2013
2013- 56,949 65,243 75,101
Estimated payback (yrs) 2
Whole life net revenue (20 yrs) 1,145,193
Average electricity price 4.1 p

21.
 With the Daikin VRV system in GH, wind
turbine could provide the largest share
of cost-efficient renewable energy
 CHP is a potential cost-effective solution
to meet combined heating and electrical
energy
 Lower tenant charge for renewable
energy does not affect profit greatly but
will be attractive for tenants.

22.
When and if hydrogen
becomes available from
renewable sources, fuel
cell CHP from renewable
sources may be possible
in Grosvenor House.

23.
 Small scale renewable energy production
can help Targetfollow to meet UK
Government’s energy strategy and to
increase revenue
 Implementing proper technology for
specific properties is feasible and
profitable
 Renewable energy strategy can improve
company image and marketability
 Cheaper energy from renewable energy
is attractive for tenants

24.
 Renewable technologies tend to be
geographically specific. Targetfollow
has a portfolio of projects spread
widely across the U.K .
 The case study only focus on the
implementation of renewable
technology for a specific site.
 The focus of this study is only on
existing, proven and mature renewable
technologies.

25.
 HORIZONTAL AXIS
 VERTICAL AXIS

26.
 GROSVENOR HOUSE
Energy Usage in Units kWh/Unit Use in kWh kg/kWh Tonnes of CO2
Supplies
Mains 940,870 1 943,455 0.550 518.9
Electricity
Natural Gas 900 31 28,111 0.194 5.5
Oil 62,600 12 753,264 0.265 199.6

27.
Velocity (m/s) Duration (hours)
1 543
1200 30000 2 830
3 1019
1000 25000
4 1102
5 1083
6 986
800 20000
Frequency (hours)
Energy (kWh)
600 15000
Frequency 7 839
Energy 8 672
400 10000
9 508
10 363
200 5000 11 247
12 159
0 0 13 98
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
14 57
Wind Speed (m/s)
15 32
16 17
Rated speed Energy Blade Radius Capacity CO2 Reductions
(m/s) (kWh) (m) Factor (kg)
8 176659 12 0.40 97162
9 146115 10 0.33 80363
10 119702 9 0.27 65836
11 97519 7.5 0.22 53635
12 79284 6.5 0.18 43606

28.
CHP EFFICIENCY
WE - Net useful power output
ΣQTH -Net useful thermal outputs
QFUEL - Total fuel input

29.
PROPERTIES LHV-base HHV-base
Mass LHV-base HHV-base Volumetric Volumetric
# FUEL TYPE Density Energy Density Energy Density Energy Density Unit** Cost CO2 Emissions
kg/m3 MJ/kg or GJ/ton GJ/m3 GJ/m3 Cost $ $/GJ kg/GJ
Solid Bulk Solid Bulk Solid Bulk
1 Brown Coal - VIC 1120 860 8 9 6.9 5/t 0.63 93.3
2 Black Coal - NSW 1450 940 24 34.8 22.6 30/t 1.25 90.7
3 Petrol n/a 34.2/l 0.73/l 21.4
4 Auto Diesel 842 n/a 45.7 38.5 0.74/l 19.3 69.7
5 LPG n/a 26.2/l 59.4
6 Natural Gas n/a n/a 37.2/l n/a 13.8 50.9
7 Sawdust (wet) 1100 367 11.85 13 4.3 20/t 1.69 90
8 Sawdust (air dry) 800 267 17.06 13.6 4.6 20/t 90
9 Woodchips (wet) 1100 550 11.85 13 6.5 35/t 2.95 90
10 Woodchips (forest dry) 800 400 17.06 13.6 6.8 35/t 90
11 Wood Pellets n/a 705 19.75 13.9 165/t 8.35 90
12 US Residues n/a 340 11.6 3.9 38/t 1.64 90
13 Charcoal 30
14 Torrefied Wood 600 300 21.5 12.9 6.5 n/a
15 Loose saw dust (dry) 200 18 3.6
16 Wood pellets (dry) 1300 650 18 23.4 11.7
17 Torrefied pellets 1300 650 22 28.6 14.3
18 Softwood chips (dry) 190 20 3.8
19 Corn 760 19 14.4
20 Soybeans 770 21 16.2
21 Coconut shells 1/4" 540 20.5 11.1
22 Biodiesel 920 41.2 37.9
23 Diesel 880 45.7 40.2

30.
'Thin Film' Polycrystalline Monocrystalline 'Hybrid'*
Appearance
Efficiency at STC** Good 7 - 8% Very good 11 - 13% Very good 14 - 16% Excellent 17 - 19%
Efficiency in overcast
Excellent Good Good Excellent
conditions
Area needed /
kWp*** (for Unisolar modules: 16m2 Sharp modules: 8m2 Sharp modules: 7m2 Sanyo modules: 7m2
modules)
C21 tile: 10m2 Sunslate: 10m2
Glass-glass laminates: Glass-glass laminates:
Area needed per Solar metal roofing: 23.5m2
10m2 - 30m2 8m2 - 30m2 n/a
kWp (for BIPV) Glass-glass laminate: 25m 2
(depends on cell (depends on cell
spacing) spacing)
Annual energy
generated per kWp
900 kWh/kWp 750 kWh/kWp 750 kWh/kWp 900 kWh/kWp
(south-facing system,
30 deg' tilt)
Annual energy
generated per sq m
55 - 60 kWh/m2 90 - 95 kWh/m2 105 - 110 kWh/m2 125 - 135 kWh/m2
(south-facing
modules, 30 deg' tilt)
Annual CO2 savings
390 kg/kWp 325 kg/kWp 325 kg/kWp 390 kg/kWp
per kWp
Annual CO2 savings
25 kg/m2 40 kg/m2 45 kg/m2 55 - 60 kg/m2
per sq m

31.
Display Energy Certificates (DEC)
Energy Performance Certificates (EPC)

32.
Characteristics 50kW
Installed Cost(£) 100,000
Operational Cost (£) 3,000
Output(kWh) 146,115
ROC Income annually (£) 7305.21
ECA Income annually (£) ------
CCL savings annually (£) 643.52
CRC savings annually (£) 964.32 (2010 – 2013) 1285.81 (2013
onward)
Electricity income annually 10% less Market price 10% more
(£) 13,347 14,830 16,313
Total Annual Benefit (£) 2010‐
19,261 20,743 22,227
2013
2013‐ 19,582 21,065 22,548
Estimated payback (yrs)
5.4 5 4.4
Whole life net revenue
320,334

33.
Characteristics 45kW Nanosolar PV
Installed Cost(£) 31,638
Operational Cost (£) 0
Output(kWh) 48,180
ROC Income annually (£) 4,984.95
ECA Income annually (£) 6,327
CCL savings annually (£) 219.74
CRC savings annually (£) 318 (2010 – 2013) 424 (2013 onward)
10% less Market price 10% more
Electricity income annually (£)
4,401.24 4,890.27 5,379.3
Total Annual Revenue (£) 2010‐
9,020 10,411 10,900
2013
2013‐ 10,026 10,517 11,006
Estimated payback (yrs)
3.5 3.2 2.9
Whole life net revenue
237,296

34.
Characteristics 300 kWe Gas turbine CHP
Installed Cost(£) 160,182
Operational Cost (£) 4,981
Fuel Cost 63,683-31,826 (heating saving) = 31,856
Output(kWh) 943,455
ROC Income annually (£) -------
ECA Income annually (£) 32,035
CCL savings annually (£) 0 (exemption from ccl)
CRC savings annually (£) 4,744 (2010-2013) 6,320(2013 onward)
10% less Market price 10% more
Electricity income annually
(£) 86,184.61 95,760.68 105,336.75
Total Annual Benefit 2010- 54,284 63,667 73,436
(£) 2013
2013- 56,949 65,243 75,101
Estimated payback (yrs) 2
Whole life net revenue (20 yrs) 1,145,193
Average electricity price 4.1 p

35.
Characteristics 300 kWe Gas turbine CHP
Installed Cost(£) 160,182
Operational Cost (£) Various
Output(kWh) 943.455
ROC Income annually (£) 97760.81
ECA Income annually (£) 32036.40
CCL savings annually (£) ------
CRC savings annually (£) 7488(2010-2013) 9984(2013 onward)
10% less Market price 10% more
Electricity income annually (£)
86,184.61 95,760.68 105,336.75
Total Annual Benefit - - -
Estimated payback (yrs) -