Transcript Case Studies - REEEP Toolkits

British Foreign
and
Commonwealth
Office
International ESCO Case
Studies
Dr Alex Westlake, Consultant to the
REEEP East Asia Secretariat at CREIA
Rebecca Gunning, IT Power
Industrial Case Studies Courtesy of the World Bank EMC Project
Agenda
• International ESCO Case Studies
– Public buildings
– Residential and district heating
– Industry
• Additional Financing Mechanisms
– Clean Development Mechanism of the Kyoto
Protocol (CDM)
– A Cement Sector example
• Useful resources
Public Buildings
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Hospitals and medical centres
Schools and colleges
Government buildings
Case studies:
– Bulovkia Hospital, Czech Republic
– Aururia Higher Education College, USA
– Hemel Hempstead Hospital, UK (tomorrow)
– Michigan Prison Service, USA (tomorrow)
Aururia Higher Education Centre,
Denver, USA
• Three colleges and 33,000 year-round
students.
• Lighting in 19 campus buildings was old
and inefficient
• Aging cooling equipment not meeting
needs
Energy efficiency measures
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Two chillers replaced
Upgrading of cooling towers
Retrofitted 10,000 light fittings
New energy management control system
New laboratory fume hoods
New heat recovery system
Costs and contract
• Total Cost: USD 450,000
• Annual savings: USD 285,000
• Simple payback: 1.6 years
• 9 year performance contract
• Exceeded energy saving predictions
Other side benefits
• improved lighting quality for a better
learning environment;
• greater occupant comfort through
improved room temperature control;
• elimination of the use of CFCs in the
chiller plant; and
• improved air quality and safety in fume
hood areas.
Bulovka Teaching Hospital, Czech
Republic
• 19 buildings
• 80, 000 m2
• 1640 beds
• Central steam plant
• Energy bills: USD 2.5 – 3 million / year
• 53% - steam generation, 27% - electricity and
20% - hot water generation
Energy efficiency measures
• Switching central steam system to local
district heating system
• Implementing a new energy management
system
• Installation of new air handling recovery
units
• Converting and upgrading to new high
efficiency gas boilers
Savings
• Total cost: USD 2.7 million
• Annual savings: USD 700,000
• Simple payback: 4 years
• New equipment all owned by the hospital
Contracts and Finance
• Performance contract between EPS (the ESCO)
and the hospital
• Term of contract includes construction time and
8 year amortisation period.
• Hospital guaranteed that savings will cover all
debt service payments.
• Financed with 100% debt.
• Financing was difficult taking about a year to
arrange. Was secured with a corporate
guarantee.
District Heating and Residential
buildings
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US public housing
Poland District Heating
Lithuania District Heating
Czech District Heating
Case study:
– Portsmouth Housing Authority, USA
Portsmouth Metropolitan Housing
Authority, Portsmouth, Ohio, USA
Source: PMHA
Portsmouth Metropolitan
Housing Authority
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140 Buildings
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887 Units
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79,000 m2
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Building Types:
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Townhouse: 82 Buildings/587 Units
High Rise: 3 Buildings/245 Units
Single Family Home: 53 Buildings/Units
Administration/Warehouse: 2 Buildings/Units
Energy Conservation Concerns
• Overheating and Minimal Control of Heating
Distribution Systems
• Resident Concerns With Domestic Hot Water Supply
• High Water Consumption and Aging Fixtures
• Significant Infiltration and Building Envelope Loss
• Ductwork and air quality Concerns
• Energy Awareness and Resident Involvement
Performance Contracting
• Performance contracting allows housing
authorities to partner with an ESCO to
make capital improvements to residence
units, finance all associated costs through a
private source, and have a guarantee that
the resulting energy savings will cover the
debt service
Energy Efficiency Measures
• Heating and DHW System Upgrades
– Install Primary/Secondary Loop - 13 Boiler Rooms
– Upgrade Domestic Water Distribution Loop
– Installation of Boiler System Controls
• Mechanical Upgrades
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Replacement of Rooftop AHU’s
Replacement of Central Furnaces
Reconfigure Filter/Air Intakes
Install Air Conditioning
Energy Efficiency Measures(continued)
• Water Conservation Measures
– Upgrade or Replacement of Existing Fixtures
– Replacement of Toilets
– Upgrade or Replacement of Existing Showerheads and Aerators
• Building Shell Measures
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Air Seal Attic Space
Duct Sealing
High Density Cellulose Insulation
Attic Insulation
Weather Stripping
Energy Efficiency Measures (continued)
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General Site Measures
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Reconfigure Filter/Air Intakes
Replace Thermostats
Reduce Excess Exhaust Fan Runtime
Training and Education
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Peer Energy-Education Program
O&M Training
Community Awareness
Project Costs
• Total Project Costs: USD 3,575,122
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Capital Funds: USD 1,622,000
($400,000 PMHA funds used to buy down capital funds)
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Financed Portion (ESCO): USD 1,953,122
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Annual Debt Payment:
USD 236,410 (PC Finance Payment – 12 years)
USD 448,587 (Capital Funds Finance Payment – 4 Years)
Savings
• Savings: USD 2,888,357 (Over 12 Year Contract Term)
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Construction Period Savings: $66,596
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Annual Guaranteed Savings:
USD 208,047 (Energy & Water Savings)
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Annual Savings Predicted:
USD 234,061 (Includes Savings From Bulk Gas Purchase)
Long Term Benefits
• Major Infrastructure
Improvements
• Staff and Resident
Education/Training
• Lower Utility Cost
• Improve Resident
Comfort
• Lower Maintenance
Cost
• Community
Involvement
• Use Local Contractors
• Improved Operating
Safety
• Guaranteed Results
Typical Timeline
• RFP Process: 1-2 Months
• Complete Energy Audit: 3-4 Months
• Negotiating & Financing: 1-3 Months
• Note this period can be up to 2 years in some countries.
• Construction Period: 6-18 Months
Performance Contracting
Benefits Housing Authorities
• Keep 100% of Savings for up to 12 Years
• Pay for Capital Improvements Out of the Savings
• Private Funding
• Leverage Capital Funds
• Capture Savings Typically Lost Using Capital
Funds
Housing authority - Summary
Performance Contracting Offers housing authorities:
• Capital improvements without capital expense
• Guaranteed savings
• Comprehensive and attainable solutions
• Jointly developed solutions
Energy Efficiency in Industry
• Successful approaches to EE standards
• Case Studies
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Hebei ZhuoZhou XinXing Thermal power
Qiqihar Brewery
Beijing Dongfang Chemical Factory
Jinan Huangtai Power Plant Variable Speed Drive (VSD)
Anqing Copper Mine VSD
Static Power Compensation
Distribution Transformer Upgrade
Low frequency heating in Ningxia Iron alloy company
Kunming Steelworks Power Plant
Jimen Hotel Air-conditioning Energy Efficiency Improvements
Top-runner program
in Japan constantly
raises the bar
- Manufacturers can
produce below the
standard but on average
must exceed it
- Carrot & stick approach
Combustion System Upgrade
• Implemented by: Beijing EMCo
• Client: Hebei Zhuozhou Xinxing Heating Power Ltd.
• Project: Upgrade coal pulverization system of 3 x 75t/h
pulverized coal boilers, use energy saving burners, etc.
• Investment: 5.88 million RMB
• Energy saving result: yearly energy saving of 30786tce,
and profit of 5.59 million RMB.
Combustion System Upgrade
• Title: Energy conservation upgrade of chain-grate boiler
combined with burning of pulverized coal
• Client: Qiqihar Brewery
• Project: 10t/h chain-grate boiler; output 6t/h; efficiency
65%. After upgrade with this technique, boilers can use
different types of coal, with output of 14-15t/h and
thermal efficiency of 75%.
• Investment: 450,000 RMB
• Energy saving result: yearly coal saving of 1758t, and
power saving of 150 MWh; payback period: 1.2 years.
Recovery of Condensation Water
• Implemented by: Beijing EMCo
• Client: Beijing Dongfang Chemical Plant
• Project: use 7 units of condensation water collectors,
and send the collected condensation water back into
boiler’s de-aerator.
• Investment: 3.08 million RMB
• Energy saving result: yearly energy saving of 11340tce,
and yearly profit of 3.69 million RMB; payback period
less than 1 year.
Speed Control (Chopping Inward-feed
Speed Control Technique)
• Case Title: Jinan Huangtai Power Plant
• Implemented by: Beijing Yiren Haitai Energy Technology Ltd.
• Technological points: frequency speed control regulates input end
(stator), and chopping inward-feed regulates output end (rotor).
Investment is ½ of that of frequency speed control.
• Project: 2 x 6kV 800kW boiler induced draft fans, 2 x 710kW boiler
air blowers.
• Total investment: 3 million RMB. Payback period: 18 months.
Speed Control (Liquid Resistor Speed
Control)
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Title: Liquid resistor speed controller for fans
Client: Anqing Copper Mine
Implemented by: Xiangfan Dali Industrial Control Ltd.
Project: Axial flow fan is driven by 800kW coiling motor; the actual
power under full speed is 602kW; air volume can be adjusted in over
4000 hours. By using this technique, the speed control time
accounts for 45% of the operation time, with a range of 70-90%, and
with obvious energy saving.
• Payback period: 10 months
Reactive Power Compensation
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Implemented by: Beijing EMCo
Client: Hohhot City Power Bureau
Investment: 1.66 million RMB
Energy saving result: yearly energy saving of
1090tce, and yearly profit of 1.17 million RMB.
Distribution Transformer
• Case Title: Application of S9 energy-saving distribution
transformer
• Client: Huangshi City Power Bureau
• Project: Install 1 unit of S9 Model 315kVA energy-saving
transformer, with good energy saving result. Currently,
61 units have been installed, with 19215kVA.
• Payback period: 0.8 year
Application of Low-frequency Electric
Smelting Furnace in Metallurgical Industry
• Client: Ningxia Helanshan Ferroalloy Ltd.
• Project: Low-frequency electric smelting furnace is cross between
power frequency smelting furnace and direct current smelting
furnace, with an operating frequency of 0-3Hz. It saves energy,
reduces consumption, increases output, lowers noise, increases
metal recovery rate, and improves environment. Install 1 unit of
3200kVA low-frequency smelting furnace and 1 unit of 6300kVA lowfrequency smelting furnace.
• Total investment: 1.65 million RMB
• Energy saving result: yearly power saving of 3520 MWh, and power
cost saving of 1.06 million RMB. Payback period: 1.63 years.
Turbogenerating Device Using Recovered
Waste Pressure of Blast Furnace Gas
• Client: Kunming Steelworks, Power Plant
• Project: The plant’s No. 6 Blast Furnace (2000m3) has a gas
pressure of 0.15MPa. Build 1 unit of turbo-generating device using
recovered waste pressure of blast furnace gas. This provides approx
30% of the power used by blast furnace’s air blower.
• Total investment: 29.72 million RMB.
• Energy saving result: yearly power generation of 40,980 MWh, and
power cost saving of 12.29 million RMB.
Energy Conservation Upgrade of Buildings’
Heating and Refrigeration Systems
• Client: Beijing Jimen Hotel
• Implemented by: Beijing EMCo
• Project: use land-thermal water-source heat pump to provide
heating and living hot water in winter (replacing coal-fired boilers),
and to provide refrigeration (replacing piston-type water chilling units)
and hot water (replacing oil furnaces) in summer.
• Investment: 2.19 million RMB
• Energy saving result: yearly energy saving of 512tce, and yearly
profit of 1.28 million RMB
Agenda
• International ESCO Case Studies
– Public buildings
– Residential and district heating
– Industry
• Additional Financing Mechanisms
– Clean Development Mechanism of the Kyoto
Protocol (CDM)
– A Cement Sector example
• Useful resources
Introduction to the CDM
• In 1997, the Kyoto Protocol introduced legally binding
GHG emission reduction objectives
• The signatories of the Protocol (Annex B countries)
committed to reduce the GHG emissions by 5.2% in
the period 2008-2012 relative to 1990 levels
• 3 flexible mechanisms were established to promote
cost-effective emissions reductions worldwide:
Emissions trading (ET), Joint Implementation (JI) and
the Clean Development Mechanism (CDM).
Features of the CDM
• The CDM is the only mechanism that allows Annex B
countries to finance project in non-Annex B countries
to acquire Certified Emissions Reductions (CERs)
that will be credited towards their Kyoto targets
• The CDM provides a practical link between Annex B
countries and developing countries
• Developing countries gain the capacity, technology
and financing for greenhouse gas (GHG) abatement,
and achieve sustainable development through CDM
projects
CDM Case Study
Waste Heat Recovery Project
• Location: Shandong Province, China
• Total capacity: 13.2MW
• Project cycle: 10 years, 2006-2015
• Price of CER: USD 5-6 per tonne CO2
• Total CERs: 1.42 million
• Total potential finance from CER sales: USD
7.1 million
Agenda
• International ESCO Case Studies
– Public buildings
– Residential and district heating
– Industry
• Additional Financing Mechanisms
– Clean Development Mechanism of the Kyoto
Protocol (CDM)
– A Cement Sector example
• Useful resources
Some useful international web links
• ESCO Associations:
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China – www.emca.cn
Japan – www.jaesco.gr.jp and http://www.eccj.or.jp/index_e.html
US – www.naesco.org and Alliance to save energy – www.ase.org
UK – www.esta.org.uk
• Resources:
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Technology - www.caddet.org
Networks - www.reeep.org
China/India/Brazil - http://3countryee.org/publications.htm
EU - http://europa.eu.int/scadplus/leg/en/s14000.htm#EFFICACITÉ
Econoler resource library (one of the first ESCOs) http://econolerint.com/English/lectures_publications_e.html
• CDM
– UNFCCC website - www.unfccc.int
– CDM website – http://cdm.unfccc.int
Summary
• A wealth of positive ESCO experience exists
now globally
• Key sectors are public buildings, industry
commercial and residential
• Ideally EE is tackled by better upfront standards
and design, but as technology advances and
installations age there are always opportunities
for ESCOs to take advantage