Strategy and planning

1Circle's service for defining a strategy and plan of action to reduce cost, increase efficiency and reduce emissions from energy use by buildings

Purpose

One plan for lower energy cost and emissions – costed, prioritised and board-ready

Boards and investors expect lower energy cost and lower emissions. Yet the options – solar, efficiency upgrades, renewable contracts and offsets – compete for the same capital, and the proposals put forward often lack rigour or independent challenge.

As an independent adviser acting only for you, 1Circle sets realistic targets and builds a costed, prioritised roadmap: what to do, when, and what it will return.  The strategy sequences the works that lower running costs, lift efficiency and asset value, and cut energy-related emissions towards net zero – funded, wherever possible, by the savings and revenue the plan itself identifies.

For commercial, retail, industrial and mixed-use assets, the strategy also assesses embedded networks – on-selling revenue, cost recovery and yield – alongside the efficiency and renewable works, improving the return on the whole program.

Our approach quantifies the merits of each initiative and how it contributes to your objectives and how you gain:

  • lower energy cost – initiatives ranked by savings and return
  • better use of capital – the highest returns funded first, and nothing spent twice
  • target creditbility – costed milestones the board can commit to
  • reduced risk – less exposure to price volatility, compliance gaps and missed commitments
  • one view of energy – shared by finance, facilities and sustainability teams

Scope

One plan for energy cost, supply, efficiency, revenue and emissions

Energy is rarely owned by one team – procurement, facilities, sustainability and finance each hold part of the picture.  The strategy brings these together in a single plan, for one organisation or a national portfolio, and for existing buildings and new developments.

The strategy covers:

  • energy cost and supply – on-site generation, renewable contracts, certificates and offsets, timed to contract end dates
  • efficiency and plant renewal – operational improvements, and upgrades timed to end of life
  • energy revenue – embedded network on-selling, cost recovery and on-site generation
  • net-zero planning – Scope 1 and 2 targets, milestones and pathway
  • governance, compliance and disclosure – reporting obligations, rating and certification schemes, roles, KPIs and review cycle
  • a pathway to delivery – each initiative scoped for procurement, projects or ongoing operations

Typical initiatives

Typical initiatives considered in a net-zero plan are summarised below.

LED Lighting

Upgrade of traditional lighting fittings to LED provides strong benefits including up to 50% reduction in energy use and emissions, improved lighting outcome, strong payback and financial return, and reduced operational risk.

HVAC Upgrades

Heating, Ventilation and Air-Conditioning systems are the primary consumer of electricity and therefore, a critical point of focus.  Upgrade of end-of-life equipment and the introduction of strong preventative maintenance reduces energy consumption by 10-15%.

Operational control

Control systems and operational practices can play a major role in preventing unnecessary energy use e.g. out-of-hours, vacant space.  Our analysis informs the potential of improved practices and the case for automated control as part of future refurbishments and/or immediate implementation.

On-site solar

On-site rooftop (and carpark) solar renewably and more cheaply provides electricity.  Retrofit installation on existing buildings and inclusion in future works is a cornerstone in fulfilling a sustainable future and typically provides 20-50% of a property's electricity requirement.

Renewable supply

The majority of electricity and gas requirements are supplied from the grid.  Renewable electricity options (over and above onsite solar) and emission offsets for gas are key requirements for achieving a net zero outcome.

Process

From a clear baseline to a plan the board approves

Tariffs, load, plant condition, technology cost and rebates all interact, and few teams have the time or market data to weigh them together. Our process does that work for you, with close attention to detail and to the evidence stakeholders need to approve the plan.

The process is structured over three stages:

  • establishing the baseline and confirming goals
  • testing every option at indicative cost and benefit
  • sequencing a costed roadmap and taking it to approval

AUDIT

Establish the baseline and confirm the definition of success

  • Confirm goals and constraints – stakeholder expectations, budget and timeframe
  • Establish present and historic energy use, cost and emissions, including contracts and end dates
  • Benchmark energy use against comparable buildings and organisations
  • Review asset registers and identify where a plant audit is needed before capital is committed, e.g. lighting, heating, ventilation and air-conditioning
  • Define the baseline profile against which improvement opportunities are compared
  • Identify compliance and disclosure obligations, e.g. climate reporting, NABERS and embedded network requirements
U

ANALYSE

Compare every option on equal terms – including doing less

  • Set targets and milestones for cost, efficiency and emissions
  • Assess efficiency opportunities – operational control, lighting and air-conditioning upgrades, plant renewal and gas electrification
  • Evaluate electricity supply options to move to renewable and net-zero emissions – on-site solar and storage, renewable grid power, certificates and offsets – timed to contract end dates
  • Quantify embedded network revenue, cost recovery and yield
  • Assess new-build energy performance against specification
  • Estimate the indicative cost, savings, return and emissions impact of each initiative, including applicable rebates and certificate

PLAN

Consolidate analysis into a prioritised plan

 

  • Prioritise and sequence initiatives against objectives, budget and stakeholder expectations
  • Detail the delivery pathway for each initiative – through Energy Procurement, Energy Projects or Energy Operations
  • Schedule the timing, indicative budget, savings and emissions impact of the roadmap
  • Define governance – roles, KPIs and review cycle
  • Prepare a board-ready strategy and support stakeholders through approval
  • Review the strategy annually or after a material change

Output

1Circle's award-winning Energy Plan™ lets stakeholders test options before capital is committed

The strategy is delivered as an Energy Plan™ using leading-practice digital reporting. The plan is provided as a secure online website using Microsoft’s collaborative and business intelligence software, and features:

  • Interactive quantitative analysis - stakeholders can select different options and price scenarios to better understand the impact of alternative choices
  • Hierarchically structured information - from short executive summaries through to detailed cash flow models, technical appraisals and asset registers
  • Supporting reference and educational information to help stakeholders acquire requisite knowledge to aid their decision making

Clients see the Energy Plan™ as a key point of difference. Its benefits include:

  • Financial and analytical rigour that satisfies boards, investment committees and finance teams
  • Responsiveness to project changes, data updates and market developments
  • A reliable reference from approval through delivery and annual review

School net zero Energy Plan

Net zero Energy Plans for schools provide a clear direction on how a school can become more energy efficient, generate and source renewable electricity and ultimately eliminate their energy related emissions.

The Energy Plan includes significant educational resources to explain the merits and considerations of individual initiatives and illustrates the consequence of differing energy efficiency and productivity.

Commercial net zero and Energy Plan

Commercial net-zero energy plans provide rigorous commercial analysis of initiatives, investment option analysis and technical analysis to support commercial and operational stakeholders.

Forecasting assumptions are detailed with underpinning explanations as appropriate including business master plans and market price analysis.

Experience

Leaders for more than a decade

Since 2014 we have been defining plans of action to lower energy cost, improve energy efficiency, increase revenue and transition to a more sustainable future – and then helping clients deliver them.

Our experience covers the range of property sectors, including education, commercial, retail, office and industrial, from single sites to national portfolios.

School program

145 school network for Brisbane Catholic Education

1Circle lead the net-zero energy planning for all 145 schools of the BCE network.  This included detailed auditing of plant and equipment to establish accurate equipment asset registers, the definition of business cases for onsite solar, lighting and air-conditioning upgrades, and achieve a goal of becoming 110% renewable.

Retail portfolio

Queensland Investment Corporation | Global Real Estate portfolio

As the lead energy consultant, we have and continue to support QIC in energy planning across its' retail assets.  For a core group of five centres in a specific fund we defined integrated net zero plans including efficiency improvements (lighting, HVAC), on-site solar and transition to renewable grid supplied energy for the balance of electricity needs.

Office portfolio

Queensland Investment Corporation | Office portfolio

1Circle developed a plan to achieve net zero emissions for a portfolio of office assets.  Existing plant and equipment asset registers were rigorously reviewed, efficiency benefits from plant upgrades and transition to renewable electricity supply were forecast over a 10 year view to inform short- to long-term net zero milestones and capital plans.

Estate development

Parklea | new residential estate

We developed an ESG strategy and detailed plan on the value of providing incentives as part of resident land purchase on solar, enhanced heating and cooling systems, and improved insulation to reduce home owner utility costs and improved sustainability.  This was integrated with other aspects of Parklea's leading customer proposition for new estate home owners.

For further information contact 1Circle