implementation of energy efficiency measures through esco route on shared saving model presented by...

IMPLEMENTATION OF ENERGY EFFICIENCY MEASURES

THROUGH ESCO ROUTE ON SHARED SAVING MODEL

PRESENTED BYAKASH JAIN

DIRECTORALIEN ENERGY PVT. LTD.

PRANAT ENGINEERS PVT LTD

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ALIEN ENERGY RDD CENTRE

Research Development & Designing Centre

Having Built-up area of 6000 sq. ft. Building having North East Facing (Vastu compliance). Building is designed as per SAVGRIHA / BEE 5 star

rating. Having provision of using maximum natural light and

minimum artificial light. Doubled Glaze glass helps to reduce the heat Loss

inside the office. Eco friendly products are used inside the building Energy efficient lighting system and BEE 5 star Air-

conditioning units are used in the centre. Insulation has been used in wall and ceiling to transfer

the heat

Profile of ALIEN GROUP OF COMPANIES (AGC)……

BEE GRADE 1 ESCO Company

Alien Energy is on the panel of

BEE/EESL/PCRA/PFC/HAREDA/GEDA /NDPL/MPUVNL/IREDA/MEDA

AGC has conducted a large no. of energy audits in Industries,

Municipal corporations & Building in India.

More than a decade successfully develops, executes and finances

ESCO projects

AGC have executed more than 100 ESCO projects in the

facilities across India.

Alien Energy LED products are approved by UPPWD-U.P.,

NEDCAP-A.P., HAREDA-HUDA, NDMC, EESL, etc.

All Products Compliance with Indian & International standards

and as per GRIHA, LEED & ISI Standards

AGC has a large number of BEE certified auditors and technical

experts for Energy Audits.

What is ESCO?

“An Energy Service Company (ESCO), or Energy

Services Provider (ESP) is a business that develops,

installs, and finances projects designed to improve

the energy efficiency and maintenance costs for

facilities. The ESCO acts as project developer for a

wide range of tasks and assumes the technical and

performance risk associated with the project.”

ESCO Activities

Energy services include a wide range if activities,

such as:

Energy analysis and audits

Energy Management

Project design and implementation

Maintenance and operation

Monitoring and evaluation of savings

Energy and/or equipment supply

There is an aggregate investment potential of $ 9.8 billion for energy savings in buildings

(WRI estimates)

There is a potential for 30% demand reduction through energy efficiency in buildings, appliances and lighting.

(Mckinsey’s Analysis)

The real question is how we can achieve energy saving of these

estimates….??

BEE STAR rated qualified products and practices help you to save money and reduce greenhouse gas emissions by meeting strict energy efficiency guidelines set by the U.S. EPA and U.S. DOE. The ENERGY STAR label also designates superior energy performance in buildings.

While any of Pranat’s energy audit and implementation can help you to achieve greater degrees of comfort and energy savings, the ENERGY STAR label is a permanent, recognized certification of energy efficiency in Office, Hotels, Hospital buildings. Pranat can help you to make you facility energy star and in upgrade of star rating.

EPI = kwh/sqm/yearClimate Zone 1 Star 2 Star 3 Star 4 Star 5 StarMore than 50% air conditioned built up areaComposite 190 -165 165 - 140 140 - 115 115 -90 Below 90Warm and Humid 200 - 175 175 - 150 150 - 125 125 - 100 Below 100Hot and Dry 180 - 155 155 -130 130 - 105 105 - 80 Below 80Less than 50% air conditioned built up areaComposite 80 - 70 70 -60 60 -50 50 - 40 Below 40Warm and Humid 85 - 75 75 - 65 65 - 55 55 - 45 Below 45Hot and Dry 75 - 65 65 - 55 55 - 45 45 - 35 Below 35

BEE’s Star Rating for Commercial Buildings

Situation of ESCO businessSituation 5 years ago:

Clients without budget/funds

Clients without the know-how

Power tariff was low

What changed today:

Clients still without budget/funds

Clients better informed about energy efficiency

Power tariff has increased by 50%

Clients are interested to execute project through

ESCO route on shared savings/or direct

Barriers in ESCO business

Three main barriers recognized by WB during the

preparation phase of the EE Project :

Lack of capacity and know-how

Lack of development and project financing

Lack of consumer demand

Financing problems

Banks do not recognize ESCO projects

Project financing is not popular for ESCO business

Collateral is still a big problem

ESCO CONTRACT

Guaranteed Saving Contract

Shared Saving Contract

Services:1. Design2. Detailed engineering3. Specifications4. Procurement assistance5. Construction supervision or

construction6. Maintenance7. Performance guarantee

Guaranteed Saving Contract…..

ClientESCO

Energy saving guarantee agreement

Loan Repayment of loan

Fees for services

CREDIT RISK

Design and Performance

risk

Financial Institution

Shared Saving Contract…..

ESCO

Energy Performance ContractLoan

Repayment of Loan

CREDIT RISK

Financial Institution CLIENT

Installments

EPC Services1. Financing2. Design3. Construction4. Operation5. Maintenance6. Saving Guarantee

Ways for implementing ESCO

Shared-Savings Model

Payments to ESCO < Total cost savings in energy & maintenance.

Total Cash flow during ESPC is (supposed to be) less than before ESPC.

Owner would enjoy 100% energy saving after the contract period .

Energy + O&M

Energy + O&M

Energy + O&M

ESCO

Owner Saving

Owner Saving

0

20

40

60

80

100

120

Before EPC During EPC After EPC

Energy Saving Performance Contract……

Case Study: NDMC Palika Kendra

It was the first ESCO project of India

It was executed in association with DSCL

Lighting was taken to achieve energy efficiency

Contract period was 4 years (2000 – 2004)

All the conventional lights were replaced by ALIEN

efficient lights

Energy saving achieved – more than 44 %

Star Up gradation Of NITI AAYOG Through Alien LED…….Before Implementation:

Energy audit conducted Identified saving potential up to 30% EPI was 130 kWh/sq. m/year It was a 3 star building Decision was taken to upgrade from 3 star to 5 star EESL was given to upgrade the building as a pilot project to do.

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After Implementation & Result:

All the lights were changed by Alien led lights All the fan were changed by five star rated fans Energy saver for A.C. were installed Saving was observed more than 50% EPI has gone down from 130 to 80 kWh/sq. m/year Building becomes five star NOW

CLIENT : BUSINESS STANDARD

Quantity : 476 Nos.Load Reduction : 15.68 kWPotential Electrical Saving : 73599 kWhAnnual Monetary Saving : Rs. 463968/yearAnnually Payment to ESCO: Rs. 455998Annually Saving to CLIENT: Rs. 7970Contract Period : 4 years

EXISTING LIGHTING Qty.Hrs/ Day

Days/ Year

Watt Proposed EE Lighting Watt

2*18W CFL Fixture 58 15 313 4523W LED RETRO - FIXTURE

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2*11W CFL fixture 88 15 313 35 12W LED RETRO-FIXTURE 15

1*18W CFL spot light 52 15 313 30 9W LED RETRO- FIXTURE 9

2*36W T-8 168 15 313 86 2*16W LED TL 36

1*36W T8 45 15 313 43 1*16W LED TL 18

3*11W CFL FIXTURE 65 15 313 55 20W LED RETRO-FIXTURE 20

ESCO in Building At ITO Delhi..…

Successful Case Study Of ESCO….

TECHNOLOGY…..

Replacement of Conventional Street Lights of Sodium, Mercury & Fluorescent with New generation Energy Efficient T – 5 Fittings. Installation of GSM based dimming panels to timely Switch ON & OFF Street light and to monitor energy consumption & faulty street lights by centralized server.

BENEFITS TO OWNER

• Modernization.• Zero cost of

maintenance• Reduction in Electricity

Bill• Earning out of energy

saving & carbon credits.

ESCO Project In Industries…..

Scope : Replacement of all Conventional Tube Lights Copper Chokes and Starter in Existing fittings with Energy Efficient High Lumen Tube Light and Electronic Ballast.

CLIENT : OCM, AMRITSAR

Quantity : 6000 Nos.

Load Reduction : 120 kW

Energy Saving per year : 10.5 Lac kWh

Monetary Saving per month : Rs. 3.94 Lac

Payment to ESCO : Rs. 1.3 Lac per month

Project Period : Two years

Remarks : Completed Successfully

ESCO Project In Industries…..

CLIENT : PANASONIC , NOIDA

Quantity : 1800 Nos. Load Reduction : 36 kW Energy Saving per year : 1.29 Lac kWh Monetary Saving per month : Rs. 0.54 Lac Payment to ESCO : Rs. 0.36 Lac per month Project Period : Two years Remarks : Completed successfully in the

year April, 2005

CLIENT : BPL , NOIDA

Quantity : 930 Nos. Load Reduction : 18.6 kW Energy Saving per year : 1.04 Lac kWh Monetary Saving per month : Rs.0.43 Lac Payment to ESCO : Rs. 0.18 Lac per month Project Period : Four years Remarks : Completed successfully in the year April, 2005

More than 60 % Energy Savings Over Existing System

Pay from reduction in energy and maintenance

Best products…..pay for performance

Modernization at zero cost

No Cap-ex/Investment/Budget !!

No Op-ex/Zero Maintenance cost

Reduction in electricity bill

No Purchase No Corruption

Better services

Warranty On Product Extended Over The ESCO Period

No Hardware Cost Over The Period Of Proposal

BENEFITS OF ESCO…..WIN..WIN..FOR ALL

Connected Load Vs Units (KWH)Type of Load in a Building

Connected Load

Working Days

Average working hours /Day

Units (KWH) consumed/Annum

Lighting 15 % 365 12 Hrs 20 %

Fan 9 % 270 9 Hrs 12 %

A.C 45 % 200 9 Hrs 40 %

Pump 1 % 350 3 Hrs 1 %

UPS/Computer/Others 30 % 300 9 Hrs 27 %

Energy Saving Potential/ Cost

Type of Load in a Building

Saving Potential

Cost of Energy savings/Watt

Cost of KWH(in Rupees)

Simple Payback Period

Lighting 60 % Rs. 50/W 50000 3 years

Fan 60 % Rs. 30/W 30000 2 years

A.C 20 % Rs.150/W 150000 10 years

Solar 100 % Rs.800/W 800000 25 years

Important: Savings at Watt Cost ?

Energy Saving Proposal

S.No. Existing LightPower

Consumption (in W)

Proposed LightPower

Consumption (in W)

Energy Saving (in W)

Units (KWH)

savings/Year

Annual Savings (in Rs.)

Monthly Savings (in Rs.)

1400 W Metal Halide Street light Luminiare

450200W LED Street Light fitting

200 250 1095 6570 548

2250 W Sodium Vapour Street light Luminiare

280120W LED street light fitting

120 160 700.8 4204.8 350

3150 W Outdoor light Luminiare

17075W LED light fitting

75 95 416.1 2496.6 208

4 70 W Lighting fixture 9035 LED Luminiare

35 55 240.9 1445.4 120

5 40 W Lamp 50 18W LED Light 18 32 140.16 840.96 70

64 x 24W T5 Tube Light fitting


60 40 175.2 1051.2 88



30 30 131.4 788.4 66



18 12 52.56 315.36 26

TOTAL 1230 556 674 2952.1 17713 1476

Fixture in service (Hrs/Day)

Fixture in Service

(Days/year)

Power Tariff (in Rs.)

12 365 6

Existing ESCO proposed lighting

S.No. Existing LightPower

Consumption (in W)

Proposed LightPower

Consumption (in W)

Energy Saving (in W)

Monthly Savings (in Rs.)

Payment to ESCO in T5

(in Rs.)

1250 W Sodium Vapour Street light Luminiare


120 160 361 278

2150 W Outdoor light Luminiare


100 70 234 180

3 40 W Lamp 501 x 28W T5 Tube Light fitting

30 20 54 41

ESCO potential and way forward

There is a lot of potential for ESCO activity to meet

the energy demand in the new economic emerging country

like India

It can’t success without Strong will, hard work and

Enthusiasm of the Top management of HUDA

HUDA may appoint BEE/EESL as their technical consultant for

bringing energy efficiency through ESCO route

Important is to survive first year to over come initial

teething problems

Need more Governance and Quick Decisions to run ESCO for

the benefit of India to meet growing energy demands

ESCO Eligibility To work in HUDA

ESCO should be on the panel of BEE/EESL as an ESCO

in Grade I or II only

ESCO should have an experience of doing at least

one shared saving project in a Government sector

ESCO should have at least a turnover of Rs. 1 Cr in

last three years

Should have an office in Delhi to supply and service

Technology To work in HUDA The shared saving project must be in operation at

least for three years

JV (Joint Venture) should not be allowed

ESCO should be bind to use only MAKE IN INDIA

products

EEM’s should have simple pay back 3 to 4 years

max. ESCO contract should not be more than ten

years

Technology advancement is happening at very fast

speed

LEDs

Existing lighting System

Technology advancement……

Indoor Lighting

Outdoor Lighting

Proposed

Measurement and Verification for Energy saving

‘OPTION A’ of IPMVP should be considered to

calculate energy savings

Key parameter will be ‘W’ (Watt)/Connected Load

which should be measured once yearly to

calculate KW saved/reduced

Monetary saving in Rupees will be on DEEMED

basis which will be calculated considering working

hours, no. of days and existing power tariff for the

existing and energy efficient equipments

Ways for implementing Energy Efficiency Measures

Direct Purchase

ESCO Model

Point Model

Eligibility of Direct Purchase to work in HUDA

DIRECT PURCHASE

Empanel specialized LED/Fans manufacturers having

knowledge of LED lights/Fans

Empanelled firm should have executed at least three

projects having value more than Rs. 30 Lac

Empanelled firm turnover should be around Rs. 10 Crore

in LED lighting/Fans in the last cumulative three years

EESL has already done a lot of work in empanelment of

energy efficient firms and same can be utilized/or can be

modified as per HUDA norms


ESCO MODEL

Energy Audit – Preliminary and detailed

Identification of areas of Energy Efficiency

Energy Savings proposal

Award of work to ESCO

Implementation in:

Lighting,

Fans,

A.C / Pumps / others …

Execution time: 6 months/building


POINT MODEL

Provide inventory of In-efficient equipments

Minimum Energy savings commitment

Fixed time period of 5 years

Award of work to ESCOs/specialized firms

Implementation in:

Lighting,

Fans,

A.C / Pumps / others …

Execution time: more than 100 buildings can be executed

in 6 months

THANK YOU

implementation of energy efficiency measures through esco route on shared saving model presented by...

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