overview of work point energy efficiency retrofit project ... workpoint pilot... · climate change...

Climate Change Solutions Co. Ltd. (CCS)

Overview of Work Point Energy Efficiency Retrofit Project

(Using an ESCO Facilitator)

17 November 2015

Christopher Seeley


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, PhilippinesGovernment:• Tokyo Metropolitan Administration• Seoul Metropolitan Administration• Department of Finance, Philippines• Jakarta City Government, Indonesia• City of Melbourne, Australia

Facilitator Background

1. Thailand2. Japan3. Korea4. Hong Kong5. China6. Indonesia7. Philippines8. Malaysia 9. Vietnam10. Singapore11. Melbourne

Energy Efficiency Building Retrofit Program - Clinton Foundation (2007-2013) 153 Projects >US$250 million (8,960,520,000 THB)


The ESCO Concept

An ESCO should be able to provide ALL the following services:

1. Energy Audits (IGA’s)2. Project Design and Management3. Performance Guarantee4. Operations and Maintenance (O&M)5. Training6. Measurement and Verification (M&V)


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 RISKS1. Technical and Technology Risk2. Financial and Costing Risk3. Legal/Contract Risk


Role of a “Facilitator”

1. Represent the Clients’ (Building Owners’) interests2. Establish procurement process, scope of works, and timeline for project3. Gather all site information – energy consumption, operation hours, trends, list of

equipment, etc4. 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, etc8. 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

decision10. All project Communication, Co-ordination, and Project Management


ESCO Process

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)

1. Initial meeting with Building Owner and Facilitator


Work Point


Work Point Project Process

ESCO #3

ESCO #1

ESCO #2 ESCO A

Pre-Qualification +

Prelim Energy Audit

Evaluation +

Clarification

of

Information/S

olutionsEvaluation +

Selection for

Investment

Grade Audit

Energy

Performance

Contract

Implementation

ESCO #2

ESCO #3

ESCO #1

M&VFinal selection

of ECMs &

Negotiation of

Contract

ESCO #4


Preliminary Proposal – Main Contents

1. Site description / Overview of site2. Energy consumption breakdown3. Brief description of Energy Conservation Measure (ECM)4. Estimated Investment 5. Estimated Energy Savings6. Estimated Energy Cost Savings7. Simple Payback8. Project Summary9. 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)


LIST OF DOCUMENTS

1. Pre-qualification of ESCOs2. 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 requirements4. Evaluation ‘Sheet’ for Preliminary Proposal5. Investment Grade Audit (IGA) Agreement6. Energy Services Performance Contract


Project Description and Solutions


Expert Advisory Committee

ECFT


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 10-12 hours per day

Lighting• Compact Fluorescent• Fluorescent T8 tubes• Dedicated studio lighting• Halogen downlights• Par 38• Metal Halide


Plant Operation Data

DurationOperation

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 128 144 105 42 144 144 89 38

Feb 144 160 138 111 137 176 137 111

Mar 176 160 131 108 176 160 146 97

Apr 191 162 82 61 191 161 91 49

May 128 160 22 29 128 160 21 29

Jun 184 230 66 0 184 230 66 0

Jul 160 192 34 24 160 192 34 24

Aug 158 172 82 53 160 174 83 50

Sep 158 172 82 53 160 174 83 50

Oct 158 172 82 53 160 174 83 50

Nov 158 172 82 53 160 174 83 50

Dec 158 172 82 53 160 174 83 50


Layout/Diagrams

Chiller Plant Diagram

Cooling Tower Plant


Sample Energy Efficiency Solutions


Energy Conservation Measures (ECMs)

1. Chiller Plant Upgrade

2. Chiller Plant Management System

3. Lighting


Baseline & Chiller Plant Performance

• Chiller plant system has efficiency of 0.907 kW/ton• Opportunity to improve efficiency to 0.780 kw/ton• Total 13% saving• 13% = 810,000 THB per year

COMPONENT BRAND EFFICIENCY (kW/ton)

Chiller 400 tons TRANE 0.637

PUMP CHP1 BROOK 0.188

PUMP CDP1 BROOK 0.055

Cooling Tower CT-1 SF-JVW 0.028

Total kW/ton 0.907


Sample ECMs

Chiller Pumps Control Saving Solution


Chiller Plant Management System Architecture


COMPACT FLUORESCENT

LS CLA60 7.5W/827 220-240V FR E27

LED Replacement Quantity(unit)

System(Watt)

Price(THB)

Total Cost(THB)

Hours of Operation per Day 24

Compact Fluorescent 18

LS CLA60 7.5W/827 220-240V FR 908 7.5 187.20 169,977.60

Watt Difference 58.33% 10.5

Electricity saving per year (THB) 335.66 304,782.91

Maintenance per year

Total saved per year (THB) 335.66 304,782.91

Payback (yr) 0.56


Project Summary

TOTAL INVESTMENT THB XX,xxx,xxx THB X,xxx,xxx THB X,xxx,xxx

TOTAL ENERGY SAVINGS (kWh/year) 520,045 189,988 324,000

TOTAL ENERGY COST SAVINGS (THB/year) THB X,xxx,xxx THB X,xxx,xxx THB X,xxx,xxx

ROI (years) 5.56 4.99 3.33

TOTAL ENERGY SAVINGS (%) 11% 4% 7%

TOTAL CO2 REDUCTION (tons CO2e/year) 296 70 164

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 25.23 16.32 11.70


Evaluation of ESCO + Preliminary Proposal

Work Point Energy Efficiency Retrofit Project

# ASSESSMENT CRITERIAPOINTS

COMMENTSAvailable ESCO #1 ESCO #2 ESCO #3

xxxxxxxx xxxxx xxxxx

Qualitative Evaluation of ESCO

Overall experience and technical expertise in EE and ESCO projects (references)

1 Years of Experience in the ESCO sector in Thailand 3 1 2 2

2 Number of ‘ESCO’ projects that you have delivered in the past 3 years 3 1 1 3

3 General ESCO-related experience (broad range of experience) 5 2 2 34 Number of staff that you have in your company in Thailand? 3 3 3 3

5 Expertise in your company (technical, financial, project management) 14 11 3 5

6

The projects that you have completed to demonstrate relevant ESCO experience within the past 3 years

--- --- --- ---

Project #1 (1+9+4+14+4+3+2+3=40)/10 4 1.4 2 2.1

Project #2 (1+9+4+14+4+3+2+3=40)/10 4 2.1 2.1 1.87 Quality Management System that you have certified 1 1 1 0

8Partners (technical partners, manufacturer partners, supplier partners, finance partners) [more partners suggest the ability to deliver a large comprehensive project better]

4 0 0 4

9 ESCOs are required to demonstrate that they have the financial capacity to provide all the requirements specified in this Invitation.

1 1 1 1

Sub Total 42 23.5 17.1 24.9

Sample Evaluation


Evaluation of ESCO Pre-Qualification + Preliminary Proposal

Work Point Energy Efficiency Retrofit Project



Xxxxx Xxxxx Xxxxx

Technical and Site Specific Approach

10Comprehensive Approach – HVAC, lighting, BAS/BEMS, building envelope, hot water, renewable energy, etc

4 2 1 1

11 Depth/Detail of recommended energy savings measures 4 2 2 1

12 Analysis of electricity structures, peak/off-peak tariffs and ability for cost reduction

1 0 0 0

13 Commissioning/retro-commissioning of existing equipment 2 1 1 0

14 Innovation & Creativity (Eg. tri-generation, renewables, waste heat recovery, light tube, occupancy sensors, etc)

3 1 1 0

15 Solution specific vs. product/brand specific 3 1 0 1

16 Overall demonstration of understanding of Building Owner's interests/objectives/criteria/expectations

4 3 2 1

17 Overall understanding of the building's issues/operations 3 2 2 1

18 Overall Quality of the Prelim Assessment Report/Presentation 3 2 2 1

Sub Total 27 14 11 6

Sample Evaluation


Evaluation of ESCO + Preliminary ProposalWork Point Energy Efficiency Retrofit Project



Xxxxx Xxxxxx XxxxxxProjected Costs, Savings, and other Economic Factors

19 Total Investment Ratio of project (Eg. THB/kWh saved) 5 2 3 4

20 Total savings from implementation of project (% reduction) 5 3 1 2

21 Total CO2 reduction 2 2 1 2

22 Operations and maintenance cost savings 3 3 1 2

23 Cost effectiveness - Payback period 5 3 2 1

24 Fee for undertaking Investment Grade Audit (IGA) 1 1 1 0

Sub Total 21 14 9 11

Overall Approach

25 Overall approach to Project/Management/Communication 5 3 4 2

26 Overall feeling/response to ESCO 5 3 4 2

Sub Total 10 6 8 4

Total 100 57.5 45.1 45.9

Sample Evaluation


Project Steps and & Timeline

Activities/Month July August September October November

Week 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

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


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)


THANK YOU

Christopher Seeley

Climate Change Solutions Co Ltd.

[email protected]

+66 87 806 0880

mailto:[email protected]

overview of work point energy efficiency retrofit project ... workpoint pilot... · climate change...

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