Basf Final Presentation

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40%: Not Insulated

334Mt CO2

BASF

MSBI Final Presentation

The single largest energy consumer in Europe:

Housing

And... What's Spain doing about it?

40% of Energy consumption
36% of CO2 Emissions

Even though heating and cooling are the main energy consumers in houses, 40% of the household park is NOT insulated

Therefore, the UN has set ambitous goals for Spain for 2030 and 2050
40% CO2 reduction by 2030
80% CO2 reduction by 2050
‍

Spain's National Roadmap (PNIEC 2021 - 2030)

National Energy Fund (FNEE)

Autonomous Communities Energy Department Funds (PEV, PAREER)

cleanest energy?

Renewable Energy

Click to

Break

Our client identified this misconception....

And asked us to deliver a policy proposal to tackle this problem

So they can bring it to Spain's Government

The UK was one of our main case studies, since it was a succesful case that our client provided us. We focused on the interventions and plans that occurred from 2008 - 2012

MAIN HIGHLIGHTS

What

An Enegy Obligation Scheme for the energy companies called Carbon Emissions Reductions Target (CERT) and a White Label Market

How

Energy Companies where assigned a CO2 reduction obligation based on their sales.

They were provided with a list of allowed interventions and the CO2 savings per intervention

Outcomes

Cost

3.6 B£

Insulations

9.2 M

CO2

297 Mt

Due to economic and cultural similarities to Spain (and not because we had an italian in the group) we also decided to research what Italy was doing regarding energy efficiency in households.

MAIN HIGHLIGHTS

What

A tax deduction system called Ecobonus for both businesses and end-users and a White Label Market Platform

How

When users bought an Energy Efficient product (e.g new boiler, LEDs)
they could deduce the cost of these products in their tax reports in a 10 year lifespan.

Outcomes

Cost

39 B€

Interventions

3.6 M

Energy

100M mWh

As you will see, Systems Thinking was one of (if not the) most important areas of research for our project. We identified this was a really complex and interconnected Ecosystem that needed a deep understanding of the underlying behaviors and structures of the systems.

MAIN HIGHLIGHTS

For succesful Public Policy, a single intervention will likely not be enough. Several Interventions over different timeframes will effectively alter the system to the desired state.
Thinking short-term will leave to a "Shifting the Burden" archetype
Individual Points of view will lead to failure

Thinking in systems is quite entangled with design thinking. We tried to get the point of view of all the stakeholders involved in the ecosystem through different means and tried to empathize with them.
As for the end-users (people in non-ee households) we got to visit a client insulating his house through a BASF product. This allowed us to talk with them and understand their problems and way of thinking.
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If we showed and explained our full ToC, summer would be long gone in Barcelona. However, it is important that we explain the main premise of our ToC

MAIN HIGHLIGHTS

"By changing the underlying structure of the stakeholders and aligning their interests into reducing the energy used, interventions tackling the differnent areas of the system will effectively alter the system and achieve the collective goal."

‍

Check the full ToC

As every project aiming to reduce CO2, measuring the Impact was key. Due to the complexity of the system, trying to attribute CO2 reductions to a single stakeholder is impossible (and selfish, in our opinion). Therefore, the KPIs for the solution were designed and we acknowledged that all stakeholders will contribute to the achievement of the plan's targets.

KPIs to be measured

Energy Saved during the lifespan of the project (in ktep)
CO2 emissions reductions vs baseline scenario (in MtCo2eq)
Cost of the program divided by public and private investment (in B€)

Environment

Our Client

End Users

Ene. Co

Gov.

Empathy -O- Meter

After an intense research...

We designed a solution taking into account all stakeholders

And aligning their interests into the collective goal

We created a (huge)
‍causal loop diagram of the household ecosystem and how our 2 solutions would affect it

We segmentated the current houshold park into 10 main clusters. For each cluster, we had information regarding:

‍

Initial n of households
Building Information
Average Monthly Energy Consumption

Hotspot A

n = 1,257,020
Built before 1960, with 1-3 floors
Avg. Monthly Energy Consumption = 1,237 kWh

We modeled 4 possible type of interventions (Based on UK Data) and their avg. energy reduction per household

Insulation (Cavity & Solid Wall) = 21% reduction
Improve Heating (ACS) = 15% reduction
Improve to EE lightning = 8.7% reduction
Improve Appliances = 7.5% reduction

Two thirds of Spain National Energy Plan would be assigned to the energy companies in the next decade.

We simulated a linear and gradual acheivement of the goals each year (Based on UK behaviour).

Companies would prefer most cost/efficient interventions (e.g Cavity Wall Insulation)

They would target the houses (and hotspots) based on their energy consumption.

3170
ktep

Microcredits would cover the other third of the plan. We used the current rate of loans given as the initial value for the microcredits, following the "S" curve of a new market
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Avg. Cost of each Intervention

Cavity Wall Insulation

Solid Wall Insulation

Lightning

Heating

Appliances

1050.00 €

2400.00 €

100.00 €

850.00 €

320.00 €

We used historical data and Spain's Goals on Renewable Energy to predict the future value of gCO2eq emitted per kWh of Energy consumed

Using the assumptions and the data collected

We simulated the CO2 savings compared to the baseline and the cost of implementing the solutions

Check out the video

Our solution results

Showed a clear path to 100% achievement of Spain's National Plan, with

19.8 Mt CO2 saved

Our both solutions together

Systemically tackle the problem in an interconnected way that makes it feasable both environmentally and economically

5% CO2 reduction
of Spain's Total Emissions

We presented our main findings to BASF the 16th of June

Using a more technical (and boring) slide deck

Check out the slide deck

Our client was impressed with the results

And they want us to present to a higher management team in BASF to carry the project onwards

Energy Efficiecy in Households is one of Spain's main
challenges for the decade.

Our Solution is a Win3

The cleanest energy is the one that you don't need to consume at all

We learned during this project. A LOT.

Energy Efficiecy in Households is one of Spain's main challenges for the decade.

Our Solution is a Win3

The cleanest energy is the one that you don't need to consume at all

We learned during this project. A LOT.

Energy Efficiecy in Households is one of Spain's main
challenges for the decade.