Energy Efficiency Building Retrofit Workshop: Developing a Low Carbon Economy Ho Chi Minh City July 28, 2010
Clinton Climate Initiative (CCI) Mission: Make a difference in the fight against climate change in practical, measurable, and significant ways Goal: Reduce Greenhouse Gas Emissions Established by President Clinton in 2006 under the William J. Clinton Foundation Non-profit no financial incentive Implementing partner of the C40 Cities Climate Leadership Group
The C40 Cities Climate Leadership Group 40 Member and 19 Affiliate Cities
CCI Programs Vietnam Program Waste Management Program Outdoor Lighting Program Energy Efficiency Building Retrofit Program (EEBRP) Transportation Electric Motorbikes Other Global Programs Transportation Electric cars, BTR, CNG buses Solar Energy Carbon Carbon Capture and Storage Forestry www.clintonfoundation.org
Buildings = GHG Emissions 5
Why Building Retrofit? US CO 2 emissions from energy use by sector 76% of all power plant-generated electricity is used to operate buildings globally. The Buildings Sector accounts for: 30% - 40% of global energy use 50% - 70% of GHG emissions in urban areas 15% global GHG emissions Bangkok 34% Hong Kong 55% New York 79% Vietnam? HCMC? Improving existing building efficiency is among the most costeffective ways to mitigate CO2 Source: Energy Information Administration Statistics, Pew Center for Global Climate Change
EEBRP Target Projects 1. Buildings owned by the Private Sector Commercial Office Buildings Shopping Centers/Department Stores Hospitals Hotels Schools & Universities Residential (high-rise condominiums) Factories/Industry Train stations/airports/ports 2. Buildings owned by Government
CCI s EEBRP Model Partner with recognized ESCOs (multinational) to deliver project Energy Performance Contracting (EPC) guaranteed savings For building owner - cater to client s needs and preferences, limitations; offer transparency in process and prices Access to Purchasing Alliance discount on latest technologies Explore different financing mechanisms
CCI s Partnership Model Implementing Partners Energy savings guarantee BUILDING OWNERS Financial Institutions Purchasing Alliance 9
CCI Partners ESCOs* Vietnam/Regional/Global Trane Siemens Schneider Electric Regional/Global Honeywell Johnson Controls Ameresco Noresco Regional ESCOs Local ESCOs Financial Institutionsº (in process) IFC (World Bank) French Dev. Agency (AFD) ADB Private Equity Funds *Conduct energy audits, perform building retrofits, guarantee the energy savings º Preferential terms and conditions
Purchasing Alliance Preferential Price Agreements between 5% - 70% discounts Building Envelope Products (3M) Window Film Reflective Coatings Insulation materials Cooling (Trane) Chillers (high efficiency, modular, absorption) Chiller Optimization Lighting (Osram, Sylvania) Conventional LED Sensors Specialty (emergency, street lighting) Solar (Solartron) Solar PV Solar Hot Water *Accessible to new and old buildings
0% 50% 100% Operation Costs Before = $1M/year Energy Performance Contracting (example) Project at a Glance: Operation Costs Before $1 M/year Project Cost $1.5 M 30% reduction in operation costs Savings/year $300,000 Payback Period 5 years Savings Positive Cash Flow Debt Service/Loan Repayment = $1.5 M Operation Costs After = $700,000/year Year 0 1 2 3 4 5 6
Example A Full Building Approach From a Cost to an Investment From equipment to solutions High Rise Hotel, Bangkok Energy Conservation Meausre Cost Savings Payback Upgrade Chiller Plant $125,714 $20,247 6.2 Variable Primary Flow $7,143 $2,069 3.5 Lighting Retrofit $91,996 $45,841 2.0 Energy Savings Hot water by heat pump $88,571 $18,546 4.8 Conversion of Electric heater boiler to LPG Gas Boiler $150,000 $64,724 2.3 Cooling Tower Optimization $22,923 $1,145 20.0 Update Chiller Plant on 52nd floor $129,943 $19,199 6.8 Convert to Variable Flow at Secondary pump $29,086 $7,747 3.8 Convert split A/C to Chilled Water coil in kitchen $9,137 $1,284 7.1 Total 654,514 180,801 3.6 Total sqm 41,547 Total utilities expense 1,247,772 Savings from baseline 14.5% Total Greenhouse Gas Reduction 824 mtco2e per year
Role of CCI Facilitate Project Development and Implementation Connect building owners with ESCO & financial partners Ensure that owner s interests and expectations are met Provide purchasing assistance and product discounts Provide Technical Assistance Share best practice examples and support at each stage of project Connect owners to technical experts where required Assist engineering, finance, legal and procurement as needed Facilitate Best Practice Sharing EPC project development and implementation Introduce and/or inform on new and latest technologies Working with ESCOs and financial institutions
The CCI EPC Process 1 2 3 IGA Contract Financial Criteria set Walk-away compensation agreed upon Contract terms and conditions set 4 5 6 Initial Interest / Commitment Preliminary Assessment+ Proposals (RFP) Selection Investment Grade Audit Final Contract Signed Measurement & Verification Develop scope and objectives of project Project savings/ cost & technologies Free of charge Proposals are reviewed and the best is selected based on qualitative & quantitative criteria Detailed project development, energy design & engineering Guaranteed Max Price & Guaranteed savings Finalization of project scope Competitive quotations Transparent pricing Project implementation plan Postimplementation M&V reporting according to IPMVP
CCI s Projects More than 200 projects and 2,000 buildings in 47 cities CITY London, UK Houston, USA Victoria, Australia Melbourne, Australia New York, USA Chicago, USA Bangkok, Thailand Shanghai, China ACUPCC PROJECT 42 buildings (municipal, police & fire stations) 271 buildings 16 buildings (considering co-gen, tri-gen) All buildings that consume 80% of energy in portfolio 190 Apartments (NY City Housing Authority) Merchandise Mart 25 Hotel, Hospital, School, and Commercial Office Projects 10 Shopping Centers 15 buildings with Xin Chang Ning Over 500 Colleges and Universities
Case Study Central Pattana, Plc. (CPN) CPN is a leading developer, manager and investor of retail and commercial properties in Thailand. CPNs green initiative includes 10 premium shopping centers, which are part of a landmark initiative to install largescale energy efficient chillers. This initiative will reduce CO 2 emissions by more than 40,000 tonnes per year. Project Detail: Buildings: 10 shopping centers Size: 697,038 m 2 Estimated value: USD11 million Energy savings: 16% of energy use for air conditioning Payback: < 6 years Project Team ESCO: TRANE Financing: Self-Financed Milestones October 2008: Contract signed Next Steps 2009: Lighting retrofit Central World Shopping Center in downtown Bangkok
Case Study The Empire State Building, NYC Project Detail: Size: 2,500,000 ft 2 or 250,000 m 2 Estimated value: USD 20,223,382 Energy savings: USD 2.4 million/year Percent savings: 38% savings from baseline Payback period: 9.7 years CO 2 reduced: 105,000 metric tons/ 15 years Project ECMs: Radiative barrier Upgrade DDC Tenant energy management Window retrofit Existing chiller retrofit More information at: http://esbsustainability.com Project Team ESCO: JCI Financing: 15-20 year loan from financial institution Milestones Project launch: April 2009 Next Steps Implementation: 2009-2010
Purchasing Alliance Case Study: Saigon Tower, Ho Chi Minh City Saigon Tower is a 17,000 m 2 floor area office building located in the City s CBD Worked in collaboration with 3M and Saigon Tower to procure window film for the building Covered 2,867 m2 of window area with 3M s Night Vision 25 Received a 11% discount from retail price via CCI Project has a 2.5 year payback GHG emission reductions estimated at 176 tco2e annually (assuming current systems)
Purchasing Alliance Case Study: The Pullman Hotel, Bangkok Worked in collaboration with Accor Group, Sylvania and The Pullman Hotel to deliver a lighting retrofit project Replaced 134 T8 lamps with Sylvania T5 Replacement kits Received a 62% discount from retail price, at 490 baht (14.4 USD) per lamp. Project has a 2.1 year payback Will reduce 28 mtco2e over the lamps lifetime
Thank You www.clintonfoundation.org Benny Tran Country Director Vietnam btran@clintonfoundation.org +84 (0) 46 273 6780