Preben Munch - Creating new Renewable Power from the Sale of Guarantees of Origin
15
ENERGY POSITIVE! CREATING NEW RENEWABLE POWER FROM GUARANTEES OF ORIGIN 2014 German Norwegian Energy Forum Preben Munch, Director Corporate Customers, ECOHZ
-
Upload
innovation-norway -
Category
Environment
-
view
160 -
download
0
description
Creating new Renewable Power from the Sale of Guarantees of Origin Preben Munch, Director Corporate Customers, Ecohz AS
Transcript of Preben Munch - Creating new Renewable Power from the Sale of Guarantees of Origin
ENERGY POSITIVE!
CREATING NEW RENEWABLE POWER FROM GUARANTEES OF ORIGIN
2014 German Norwegian Energy Forum
Preben Munch, Director Corporate Customers, ECOHZ
WRITING ON THE WALL
“The single biggest risk that exists to the economy today”
- U.S. Treasury Secretary Henry Paulson on climate change
- Paul Simpson CEO CDP
"The transition to a low carbon economy will not be successful without a paradigm shift in the way we power our planet. That shift needs to gather pace rapidly but also be conducted in a pragmatic way,"
- Philip Ryan, Chairman Swiss Re Americas
“At IKEA, we see climate change as one of the most significant risks that businesses face today, but tackling it is also a significant opportunity. ..”
- Peter Agnefjäll, CEO IKEA
"It makes better business sense than ever to ensure we end the destruction of our natural resources and reduce our carbon output.
- Sir Richard Branson, CEO -Founder Virgin Group
ABOUT ECOHZ
Page 3
• Privately owned corporation, HQ in Oslo
• Europe office focus is corporate customers & strategic partnerships
• Ca 20% of total EU GO sales
• Largest range of renewable power products and wide European origins
• European market leader in Guarantees of Origin• 40-50 TWh annual volumes past 4 years • Offer Guarantees of Origin from 200+ power
plants
OUR VISION
Page 4
CHANGING ENERGY BEHAVIOUR-
ORIGIN MATTERS
ECOHZ GO2 => ENERGY SYSTEM TRANSFORMATION
Page 5
Fossil generation Renewables Displace fossil generation More Renewables
ECOHZ GO2
Current energy system System transformed by ECOHZ GO2
New renewables displace old carbon-intensive generation
ECOHZ GO2 – WHAT IT IS
• 1 MWh of renewable power with GO
• Zero Scope 2 emission guarantee
• A financial component • Network of corporate energy behaviour
Thought Leaders
Page 6
Each ECOHZ GO2 documents current renewable consumption
• Transparency and traceability
• Access to the most efficient way to participate in the renewables future
• “Proprietary” link to the new power plant –exclusive story
ECOHZ GO2 - HOW IT WORKS
• 1MWh; of € 4.00 price, € 3.20 (80%) committed to agreed new renewable project
• Funding administered by a special purpose foundation• High leverage effect; financing maximum 15% of
project costs (top-up)• All loans repaid to foundation, creating revolving fund
and achieve multiplier effect• Third-party verification and audit, and compliance with
forthcoming CDP Standard
Page 7
Each ECOHZ GO2 contributes to future new renewable production
ENERGY POSITIVE:POWER PRODUCTION = x CONSUMPTION Power consumption in a year (example)
100,000 MWh (zero carbon through GO)
Procurement cost through ECOHZ GO2
100,000 x € 4.00 per MWh = € 400,000
Money committed to funding of projects
80% (€ 3.20 / 4.00) = € 320,000
Top financing of a new small hydro plant
8% of € 4,000,000 = € 320,000
Power produced by new plant
8,500 MWh per year
Power produced over 40 years’ life
300,000+ MWh (3x original consumption)
Page 8
ENERGY POSITIVE BENEFITS
Claim zero Scope 2 emissions on power purchased as ECOHZ GO2
Valid across Europe
Compliant with GHG Protocol
Recognised by CDP
Contribute to the creation of new renewable energy
Choose which power projects to fund
Make a real positive impact in the energy system
Be seen as forming a positive energy future
Page 9
ENERGY POSITIVE BENEFITS
Demonstrate leadership in climate action to stakeholders
Gain power project sponsorship rights
Receive documentation for your sustainability reporting and marketing
Be part of the solution - Position as thought leader
Customise ECOHZ GO2 to your power supply needs
Purchase future GO from new plants*
Option for a PPA with new plants*
ECOHZ scouts for desired projects
Page 10
* Option availability depends on negotiation with project developers
IN CONCLUSION
• Improves Scope 2 emissions performance
• Shows climate leadership by funding real new renewable projects
• Same impact and compelling story as the trend setters (Google, Ikea, Mars…)
• Optimised cost-benefit combination • Customizable to include PPA and
long term GO procurement
Page 11
CHANGING ENERGY BEHAVIOURPreben Munch [email protected]
HOW DOES ECOHZ GO2 COMPARE - BENEFITS
Benefits Direct Investment PPA ECO
LABEL ECOHZ GO2
Support to new renewable capacity
A A A A A A A A A
Power supply and price risk mitigation
A A A A A A - A A
Scalability A A A A A A A A
Page 13
AAA signifies greater benefits
HOW DOES ECOHZ GO2 COMPARE - COSTS
Costs Direct Investment PPA ECO
LABEL ECOHZ GO2
Capital commitment A A A A A A A A A
Implementation & management complexity
A A A A A A A A A
Horizon of required commitment
A A A A A A A A A
Page 14
AAA signifies lower cost/complexity
- Lord Adair Turner
