Overview of Work Point Energy Efficiency Retrofit Project (Using an ESCO Facilitator) 17 November Christopher Seeley

Transcription

1 Overview of Work Point Energy Efficiency Retrofit Project (Using an ESCO Facilitator) 17 November 2015 Christopher Seeley

2 Facilitator Background Energy Efficiency Building Retrofit Program - Clinton Foundation ( ) 153 Projects >US$250 million (8,960,520,000 THB) 1. Thailand 2. Japan 3. Korea 4. Hong Kong 5. China 6. Indonesia 7. Philippines 8. Malaysia 9. Vietnam 10. Singapore 11. Melbourne Private Sector: Citibank (Thailand, Malaysia, Philippines, Singapore, Korea, Tokyo) Mandarin Oriental Group (Philippines, HK, Tokyo) Central Group, Thailand Trisara Resort, (Phuket) Exchange Tower (Bangkok) Interchange 21 (Bangkok) Six Senses Group (Thailand) International School of Bangkok (ISB) Bamrungrad Hospital Sikarin Hospital Four Seasons Hotel Group Intel, Vietnam MTR Corporation, Hong Kong Gran Melia Hotel Jakarta Hong Kong University, Hong Kong Century Properties, Philippines Government: Tokyo Metropolitan Administration Seoul Metropolitan Administration Department of Finance, Philippines Jakarta City Government, Indonesia City of Melbourne, Australia

3 The ESCO Concept An ESCO should be able to provide ALL the following services: 1. Energy Audits (IGA s) 2. Project Design and Management 3. Performance Guarantee 4. Operations and Maintenance (O&M) 5. Training 6. Measurement and Verification (M&V)

4 Benefits of Using a Facilitator Why is there a role for a Facilitator? The ESCO model can offer a very good business model for a building owner to reduce energy consumption, reduce costs, and replace old equipment, requiring no capital, and having very low risk. There is a long history of successful projects all over the world for over 40 years. There are also many examples of failed projects, conflicts, and even court cases It is a very complicated model with many risks MAIN RISKS 1. Technical and Technology Risk 2. Financial and Costing Risk 3. Legal/Contract Risk

5 Role of a Facilitator 1. Represent the Clients (Building Owners ) interests 2. Establish procurement process, scope of works, and timeline for project 3. Gather all site information energy consumption, operation hours, trends, list of equipment, etc 4. Prepare all project documents (Pre-qualification, evaluation forms, agreements, Energy Performance Contract (EPC), 5. Undertake Financial due diligence to ensure pricing represents fair market pricing 6. Undertake Technical due diligence to ensure technical recommendations are sound - [Best Available Technologies] 7. Undertake Quality due diligence to ensure recommended manufacturers and brands are reliable, proven, warranties are clear, etc 8. Identify and explore financing sources, options, and any added benefit (eg. grants, tax exemptions, etc) 9. Prepare summaries, options, and recommendations for Client to make well-informed decision 10. All project Communication, Co-ordination, and Project Management

6 ESCO Process 1. Initial meeting with Building Owner and Facilitator 2. Data Collection and Baseline 3. Pre-Qualification of ESCOs 4. 3 ESCOs undertake Preliminary Assessment of Building 5. Presentation and Evaluation of Preliminary Proposals 6. 1 ESCO to undertake IGA 7. EPC signed and Implementation begins 8. Measurement & Verification (M&V)

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8 Work Point

9 Work Point Project Process Pre-Qualification + Prelim Energy Audit ESCO #1 ESCO #2 ESCO #3 ESCO #4 Evaluation + Clarification of Information/S olutions ESCO #1 ESCO #2 ESCO #3 Evaluation + Selection for Investment Grade Audit ESCO A Energy Performance Contract Final selection of ECMs & Negotiation of Contract Implementation M&V

10 Preliminary Proposal Main Contents 1. Site description / Overview of site 2. Energy consumption breakdown 3. Brief description of Energy Conservation Measure (ECM) 4. Estimated Investment 5. Estimated Energy Savings 6. Estimated Energy Cost Savings 7. Simple Payback 8. Project Summary 9. ESCO Model (GS, SS, PG) 10. Fee for undertaking IGA ALL Energy Cost Savings to use X.xx THB/kWh Chiller plant operating hours as provided Lighting operating hours as provided Baseline Consumption April 2014 April 2015 Assumption that M&V will follow IPMVP Prelim Proposal NOT MORE than 25 pages (Word / Ppt/Pdf)

11 LIST OF DOCUMENTS 1. Pre-qualification of ESCOs 2. Evaluation Sheet for Pre-qualification 3. List of Information requested Equipment list, hours of operation, issues with breakdowns/frequent servicing, replacement plans Corporate targets, reporting requirements 4. Evaluation Sheet for Preliminary Proposal 5. Investment Grade Audit (IGA) Agreement 6. Energy Services Performance Contract

12 Project Description and Solutions

13 Expert Advisory Committee ECFT

14 Site Information Chiller Plant 4 chillers (water cooled) 4 sets of chilled water pumps (CHWP), 4 sets of condenser water pumps (CWP) 4 sets of cooling towers Usual operation is 1 or 2 sets of chillers. Chillers operate hours per day Lighting Compact Fluorescent Fluorescent T8 tubes Dedicated studio lighting Halogen downlights Par 38 Metal Halide

15 Plant Operation Data Duration Operation hour/month Operation hour/month Operation hour/month Operation hour/month Operation hour/month Operation hour/month Operation hour/month Operation hour/month CHP 1 CHP 2 CHP 3 CHP 4 CDP 1 CDP 2 CDP 3 CDP 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

16 Layout/Diagrams Cooling Tower Plant Chiller Plant Diagram

17 Sample Energy Efficiency Solutions

18 Energy Conservation Measures (ECMs) 1. Chiller Plant Upgrade 2. Chiller Plant Management System 3. Lighting

19 Baseline & Chiller Plant Performance Chiller plant system has efficiency of kw/ton Opportunity to improve efficiency to kw/ton Total 13% saving 13% = 810,000 THB per year COMPONENT BRAND EFFICIENCY (kw/ton) Chiller 400 tons TRANE PUMP CHP1 BROOK PUMP CDP1 BROOK Cooling Tower CT-1 SF-JVW Total kw/ton 0.907

20 Sample ECMs Chiller Pumps Control Saving Solution

21 Chiller Plant Management System Architecture

22 COMPACT FLUORESCENT LED Replacement Quantity (unit) Hours of Operation per Day 24 System (Watt) Price (THB) Total Cost (THB) Compact Fluorescent 18 LS CLA60 7.5W/ V FR , LS CLA60 7.5W/ V FR E27 Watt Difference 58.33% 10.5 Electricity saving per year (THB) , Maintenance per year Total saved per year (THB) , Payback (yr) 0.56

23 Project Summary TOTAL INVESTMENT THB XX,xxx,xxx THB X,xxx,xxx THB X,xxx,xxx TOTAL ENERGY SAVINGS (kwh/year) 520, , ,000 TOTAL ENERGY COST SAVINGS (THB/year) THB X,xxx,xxx THB X,xxx,xxx THB X,xxx,xxx ROI (years) TOTAL ENERGY SAVINGS (%) 11% 4% 7% TOTAL CO2 REDUCTION (tons CO2e/year) ESCO Delivery Model Performance Guarantee??? Guaranteed Savings M&V Chiller plant efficiency??? IPMVP Option A O&M training to Workpoint's staff n/a n/a IGA Fee THB 100,000 THB 100,000 n/a THB/kWh Saved

24 Sample Evaluation Evaluation of ESCO + Preliminary Proposal Work Point Energy Efficiency Retrofit Project # ASSESSMENT CRITERIA Qualitative Evaluation of ESCO POINTS Available ESCO #1 ESCO #2 ESCO #3 xxxxxxxx xxxxx xxxxx Overall experience and technical expertise in EE and ESCO projects (references) 1 Years of Experience in the ESCO sector in Thailand Number of ESCO projects that you have delivered in the past 3 years General ESCO-related experience (broad range of experience) Number of staff that you have in your company in Thailand? Expertise in your company (technical, financial, project management) COMMENTS 6 The projects that you have completed to demonstrate relevant ESCO experience within the past 3 years Project #1 ( =40)/ Project #2 ( =40)/ Quality Management System that you have certified Partners (technical partners, manufacturer partners, supplier partners, finance partners) [more partners suggest the ability to deliver a large comprehensive project better] ESCOs are required to demonstrate that they have the financial capacity to provide all the requirements specified in this Invitation Sub Total

25 Sample Evaluation Evaluation of ESCO Pre-Qualification + Preliminary Proposal Work Point Energy Efficiency Retrofit Project POINTS # ASSESSMENT CRITERIA Available ESCO #1 ESCO #2 ESCO #3 Xxxxx Xxxxx Xxxxx COMMENTS 10 Technical and Site Specific Approach Comprehensive Approach HVAC, lighting, BAS/BEMS, building envelope, hot water, renewable energy, etc 11 Depth/Detail of recommended energy savings measures Analysis of electricity structures, peak/off-peak tariffs and ability for cost reduction Commissioning/retro-commissioning of existing equipment Innovation & Creativity (Eg. tri-generation, renewables, waste heat recovery, light tube, occupancy sensors, etc) Solution specific vs. product/brand specific Overall demonstration of understanding of Building Owner's interests/objectives/criteria/expectations Overall understanding of the building's issues/operations Overall Quality of the Prelim Assessment Report/Presentation Sub Total

26 Sample Evaluation Evaluation of ESCO + Preliminary Proposal Work Point Energy Efficiency Retrofit Project # ASSESSMENT CRITERIA POINTS Available ESCO #1 ESCO #2 ESCO #3 Xxxxx Xxxxxx Xxxxxx Projected Costs, Savings, and other Economic Factors 19 Total Investment Ratio of project (Eg. THB/kWh saved) Total savings from implementation of project (% reduction) Total CO2 reduction Operations and maintenance cost savings Cost effectiveness - Payback period Fee for undertaking Investment Grade Audit (IGA) COMMENTS Sub Total Overall Approach 25 Overall approach to Project/Management/Communication Overall feeling/response to ESCO Sub Total Total

27 Project Steps and & Timeline Activities/Month July August September October November Week Meeting with Building Owner Collection of Facility Information Kick-Off Meeting Walk-through of Facility Prequalification of ESCOs Prelim Audit Report/Proposal Evaluation of Prelim Proposal Investment Grade Audit Contract Implementation M&V

28 Conclusion Very large potential for the ESCO market in Thailand and across SEA Strong ESCO expertise and experience in Thailand But there are many barriers and challenges that a Facilitator can assist with The ESCO Model is complicated and has many variables /models Lack of ESCO Project Process and Structure Lack of Capacity (all stakeholders) Lack of confidence in ESCOs Lack of adoption of M&V standards Lack of ESCO certification (industry standards) Lack of information/transparency Building owners see the value & appreciate ESCO Facilitators (however, most of the time this is only at the end of the project)

29 THANK YOU Christopher Seeley Climate Change Solutions Co Ltd