JFS s ESCO Business in Japan:

Transcription

1 JFS s ESCO Business in Japan: a case of Tokyo Metropolitan Hiroo Hospital, ESCO Golden Award Winning Project in 2008 March 12, 2009 Takeshi Matsumura Japan Facility Solutions, Inc 2009 Japan Facility Solutions,INC. 1

2 JFS s ESCO and Related Business 2009 Japan Facility Solutions,INC. 2

3 Characteristics of JFS s ESCO service Main targets: Non-industrial buildings such as commercial buildings, hospitals, universities, office buildings are the main customers. Type of ESCO contracts: More shared savings contracts than guaranteed savings contracts. Our competitive edge: Unique service based on each customer s needs Strong procurement ability Independency from manufactures and particular energy saving methods Wealth of knowledge and information on electricity contracts and rate structure JFS is leading the ESCO industry in Japan as one of the three big ESCO s Japan Facility Solutions,INC. 3

4 Our customers ESCO Business: 1. Large shopping malls 2. Factories 3. Hotels 4. Banks 5. Universities 6. Local govt. buildings, etc. Retrofitting: 1. Factories 2. Hotels 3. Banks, etc. 62 customers Energy saving measures are also introduced in accordance with retrofitting. 27 customers Energy Center: 1. University Hospital Energy Audit/Support Service for Regulations: 1. Govt. facilities 2. Commercial buildings 3. Research Institutes 4. Hospitals 5. Universities, schools, etc. 1 customer more than 300 customers 2009 Japan Facility Solutions,INC. 4

5 A Case of Tokyo Metropolitan Hiroo Hospital 2009 Japan Facility Solutions,INC. 5

6 ESCO project at Tokyo Metropolitan Hiroo Hospital The first ESCO competition by Tokyo Metropolitan Government. JFS is awarded The Golden Prize of Best ESCO Projects in Japan for the second consecutive year. Location Building size Total floor space Construction Electricity demand Total energy consumption Expenses for utilities Shibuya ward, Tokyo 8 stories above the ground and 2 underground stories 36,511m2 October 1980 (28 yrs) 2,168kW 188,075 GJ/year 2,700,000 euros/year The hospital deals with a variety of medical cares including emergency/disaster medical care, cardiac medicine and cerebral vessel medicine. They have about 500 beds and 800 outpatients/day Japan Facility Solutions,INC. 6

7 Achievements Big energy savings are guaranteed and actually achieved. Target Reduction Effect 25% % 2 % Energy Reduction Effect % 1 % CO2 Reduction Effect Exceeded 達成基準を the 大きくクリア 53,094 61,166 reduction target GJ/yr [GJ/ 年 ] 2,391 2,795 t-co2/yr [t- CO2/ 年 ] Primary Energy Equivalent 換算量 CO2 Emission CO Japan Facility Solutions,INC. 7

8 The result of energy savings 27.0% Reduction Effect 27.5% Reduction Effect Primary Energy Equivalent 60,649 GJ/yr Primary Energy Equivalent 61,166 GJ/yr The 1st Year (FY2006) The 2nd Year (FY2007) 2009 Japan Facility Solutions,INC. 8

9 The result of CO2 emission reduction 28.5% Reduction Effect 29.0% Reduction Effect 2,778 t-co2/yr 2,795 t-co2/yr CO2 emission CO2 emission The 1st Year (FY2006) The 2nd Year (FY2007) 2009 Japan Facility Solutions,INC. 9

10 Savings guaranteed and achieved Projected Reduction: 53,094 GJ/yr 91.3% of projected amount is guaranteed 100% 48,475 GJ/yr Compared to the guaranteed amount % 61,166 GJ/yr 115% achievement, compared to the projected amount. Amount of Reduction Guaranteed/ Projected Amount of Reduction Achieved (FY2007) 2009 Japan Facility Solutions,INC. 10

11 Reduction effect of CO2 emission Women s College The amount of the CO2 reduction in 2007 is equivalent to the forest plantation approx. 69 times the area of the hospital. Yebisu Station Hiroo Hospital (22,172m 2 ) 153ha 2009 Japan Facility Solutions,INC. 11

12 Maximization of the client s profit Prospected total cost reduction Guaranteed Savings Contract Cost redemption is possible within the ESCO term. 578,000 euros (21.3%) Of the present conditions Light and heat water costs Reduced Expenses 300,000, 000 3,900 2,136,000 euros Ten thousand yen Guaranteed Profit for the hospital 439,000 euros ESCO Service Charge 89,000 euros Guaranteed Reduction 528,000 euros Total profit through six years ESCO term 2,632,000 euros > Renewal costs 2,480,000 euros + Government Subsidy 1,200,000 euros 2009 Japan Facility Solutions,INC. 12

13 Energy saving techniques Applying various energy saving techniques to every stage of heating, ventilating and air conditioning. Reduce Air-conditioning Load Itself Produce Heat Efficiently Transport Heat Efficiently 1) Reduce the volume of outdoor air intake according to indoor CO2 density 2) Optimize cool and re-heat process in double coil AHUs by allowing small temperature and humidity fluctuation 3) Renew refrigerators/ boilers for higher efficiency (Heat source renewal) 4) Produce chilled water only with cooling tower operation under low out-air temperature (Free Cooling) 5) VWV control 6) VAV control 6% 13 % 8% Others 7) Intermittence drive of AHUs and ventilation fans 2% Total energy saving rate: 28% 2009 Japan Facility Solutions,INC. 13

14 The main idea of heating facility replacement Generally speaking, the Co-Generation System (CGS) is considered to be suitable for hospitals since their heat demand is large. Various aspects are carefully examined such as energy consumption, CO2 emission, construction costs and maintenance costs. We reached to the conclusion that shifting the source of energy from gas to electricity can be more profitable than choosing a CGS by improving heating efficiency including partial loads of heat demand and optimizing the capacity of facilities. Without a CGS, we can avoid electric outages during construction work, and it is another advantage of our plan Japan Facility Solutions,INC. 14

15 Heat quantity produced for cooling 100% 80% 60% 40% Steam absorptiontype refrigerator Absorption-type cool & warm water generator Free Cooling Before Most of the heat source for cooling was produced by the steam absorption-type refrigerator. 20% 0% Turbo refrigerator Before the renewal Inverter Chiller After the renewal After Half of the heat source for cooling is produced by the Inverter Chiller. COP improved from 0.75 to Japan Facility Solutions,INC. 15

16 Analysis of 12 energy saving measures Achieved energy savings (GJ/yr) Air conditioner: air volume adjustment 15,000 Boiler renewal 10,000 Optimizing cool and reheat process 5,000 Free cooling 0 Ventilation fans Secondary pump: Refrigerator renewal Variable Water Volume Cooling water pump: Variable Water Volume Air conditioner: Variable Air Volume Control of outdoor air intake Primary pump: Variable Water Volume 0 Timer control 5,000 10,000 15,000 Projected energy savings (GJ/yr) FY2006 FY Japan Facility Solutions,INC. 16

17 The contract terms Penalty articles when guaranteed values are not achieved: The way of comparison between guaranteed and achieved energy savings: The energy saving amount will be calculated with respect to each M&V method of energy saving measures. Countermeasures if the guaranteed amount of energy savings were not achieved: ESCO service charge shall be lowered by the amount of underachievement. Some technical actions shall be taken for the following years by JFS. Term concerning important risks: Business abandonment and bankruptcy: Either party can cancel the contract. Conditions in case of cancellation and methods of compensation for damages are provided in the contract. Change of unit prices of utilities: Unit prices of utilities applied for the effect calculation are fixed at the time of contract. Baseline adjustment: In case of the change of climate and/or energy demand, baseline can be corrected by mutual accord between the client and JFS Japan Facility Solutions,INC. 17

18 Partnership between the client and JFS Problem solving through the regular meeting: After ESCO service started, a regular meeting among the concerned parties is held every month. The members of the meeting are the client, JFS, the operation manager, the maintenance staffs, etc. The results of previous month s M&V are checked, and a maintenance schedule for next month is revised. Influential events such as machine trouble are shared by the meeting members. In addition to energy savings relating to ESCO facilities, some other possible measures in the hospital are discussed. The partnership system between the client and the ESCO is build in order to collaborate with one another and achieve more energy savings: We are on the same boat Japan Facility Solutions,INC. 18

19 Customer satisfaction Benefits for the client Although this is the first ESCO project for Tokyo Met. Govt., more energy savings have been achieved than expected. It contributes to the activity of global warming countermeasures promoted by Tokyo Met. Govt. The ESCO project is displayed on the TV monitor in the hospital to the publics. Many requests for observation visits form other local governments and overseas. This project has been known as a successful ESCO case of the public sector. 東京都都立広尾病院は ESCO ( エスコ ) 事業を導入し CO2 排出量を大幅に削減します! ESCO (Energy Service Company) 事業とは 省エネルギー改修において優れた技術を有する民間事業者の提案を受けることにより 光熱水費の効果的な縮減並びに省エネルギー及び温室効果ガス縮減等を推進して環境負荷の低減を実現する事業です 本事業は 平成 17 年度二酸化炭素排出抑制対策事業費等補助金 ( 地方公共団体率先対策補助事業 ) の交付を受けています 7,949 [t-co2/ 年 ] 導入前 CO2 排出量 CO2 縮減効果 縮減 % 効果 JR 恵比寿駅 2,391 [t- CO2/ 年 ] 5,558 導入後 [t-co2/ 年 ] CO2 排出量 聖心女子大学 都立広尾病院 (22,172 m2 ) 131ha 188,076 [GJ/ 年 ] 導入前エネルギー使用量 134,982 [GJ/ 年 ] 地下鉄広尾駅 有栖川記念公園 省エネ効果 広尾病院の敷地約 59 個分に植林した場合の CO2 吸収量に相当 縮減 % 効果 導入後エネルギー使用量 53,094 [GJ/ 年 ] 東京都財務局病院経営本部 In-house monitor Poster by Tokyo Met. Govt Japan Facility Solutions,INC. 19

20 Issues in ESCO Business in Japan 2009 Japan Facility Solutions,INC. 20

21 Issues in ESCO business in Japan (1) The down side of improved recognition of ESCO The notion that all initial costs can be covered by a reduction in running costs by a ESCO method is being overemphasized, and so sometimes the concept of ESCO itself can be an obstacle. (in case of large refurbishment such as heating system replacement, completing a deal is not easy.) Comprehensive service and performance guarantee should be the basic concept of ESCO in the first place. A scheme that is not constrained by the extent of running cost reduction should be more developed. (JFS has some successful projects of this kind. They are called sticking out ESCO. ) Pro and con of ESCO competition by local governments Pro: improving the recognition of ESCO Con: weakening ESCO industry by excessive competition? Difficulty in finding ESCO projects JFS has started a Web-based energy management service with a view to subsequent ESCO projects Japan Facility Solutions,INC. 21

22 Issues in ESCO business in Japan (2) Solutions for small buildings Energy consumption of each building is small, but total amount as a whole category is huge. Reduction in the running cost is too small to cover the initial costs. Cost effective methods for small buildings should be developed. A new finance scheme Government Assistance such as a subsidy for ESCO projects for small and medium sized enterprises. Customers need for CO2 emission reduction In addition to the conventional guarantee method of financial compensation, JFS has introduced guarantee scheme for CO2 emission reduction for its ESCO service. Friction with client s in-house engineers Sometimes concerns are raised that ESCO might enter in-house engineers territories and interfere with their job Japan Facility Solutions,INC. 22

23 Thank you for your attention Japan Facility Solutions,INC. 23