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1.800.580.3765 ▪ WWW.TETRATECH.COM
“SAVE THE PLANET,
SAVE YOUR MONEY:
CUTTING COSTS
THROUGH RESPONSIBLE
RESOURCE USE”
Caribbean Conference on Sustainable Tourism Development
Bermuda, April 2011
Bill Meade
Bill.Meade@tetratech.com
Topics
What the auditors found…
Energy efficiency and renewable energy technologies
Profile of the Caribbean hotel industry
Characteristics of energy use
Energy savings opportunities
Issues influencing hotel investment in EE
Barbados case study
Energy efficiency value chain
Wasted air-conditioning in guestrooms
Wireless door monitors Open patio doors in guestroom
Poorly maintained refrigeration and AC
Dirty refrigerator coil
Damaged condenser fins from unit on roof
Poorly maintained solar water heaters
Un-insulated hot water pipes
Accumulated on solar hot water heater panel
Bad practices in the kitchen
Walk in fridge door left open Tap left running in kitchen sink
Technology advances in bulb lighting
Incandescent
bulb Compact fluorescent
bulbs
Light Emitting Diode (LED)
bulb
Technology advances in tube lighting
LED tube T 8 fluorescent w/ magnetic
ballast
T 12 fluorescent tube
Technology advances in room air-conditioning
Mini-split A/C unit Inverter type mini-split
system
Integrated AC and hot water system
VRV system with hot water production Mini Split Compressors on the Roof
Room energy conservation devices
Automatic door closers Programmable thermostat
Occupancy sensor
Energy conserving window technology
Reflective window coating Double paned window Energy efficient louver
Energy conserving roof technologies
Spray-on roof insulation Roof ventilation products
Reflective roof coating
Solar energy technologies
Vacuum tube solar hot water
system Solar photovoltaic (PV) system
Solar energy technologies
Horizontal axis wind turbine Vertical axis wind turbine
Profile of the Caribbean hotel industry
Includes hotels, integrated resorts, villas, rental apartments
Ranges from properties < 10 rooms to mega-resort
complexes > 1,000 rooms
Owner, operated; locally and foreign owned; hotel chains;
government-owned
Licensed and unlicensed by national tourism authorities
Members and non-members of national and regional hotel
associations
All have similar energy end-use needs (e.g., lighting, air-
conditioning, etc.)
Profile of the Caribbean hotel industry
Country/Territory Hotel Properties Hotel Rooms Average Hotel Size
Anguilla 22 658 30
Antigua / Barbuda 60 4,452 74
Aruba 36 7,338 204
Bahamas 161 16,471 102
Barbados 73 5,506 75
Bermuda 29 2,416 83
British Virgin Islands 34 1,199 35
Cayman Islands 82 4,767 58
Cuba 167 41,054 246
Dominica 28 677 24
Dominican Republic 258 64,208 249
Grenada 55 1,773 32
Guadeloupe 162 11,148 69
Haiti 41 1,636 40
Jamaica 260 24,668 95
Martinique 76 5,888 77
Montserrat 8 249 31
Netherlands Antilles 118 9,881 84
Puerto Rico 174 15,692 90
St Kitts / Nevis 31 1,841 59
St Lucia 71 4,983 70
St Vincent / the Grenadines 48 1,029 21
Turks / Caicos Islands 43 3,042 71
US Virgin Islands 101 5,689 56
TOTAL 2,138 236,265 111
Average hotel electricity prices (US$/kWh) US average = 0.12 $/kWh
Average fuel adjustment (US$/kWh)
Oil-fired generation dominates the region’s utilities
0.000.00
0.030.14
0.180.17
0.370.21
0.190.00
0.150.15
0.110.16
0.240.08
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40
Trinidad
Suriname
St. Lucia
St Vincent
Jamaica
Grenada
Dominica
Curacao
Cayman
Belize
Barbados
Bahamas (2)
Bahamas (1)
Aruba
Antigua
Anguilla
Electricity consumption in Caribbean hotels
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
An
nu
al E
lect
rici
ty U
se b
y H
ote
l Siz
e (i
n G
Wh
)
>400201-400101-20051-100< =50
Caribbean hotels consume an estimated 5,660 GWH electricity annually
Electricity use in hotels less than 120 rooms
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
An
nu
al E
lect
rici
ty U
se b
y H
ote
ls <
120
ro
om
s (i
n 1
,000
MW
h)
80 to 119
40 to 79
20 to 39
<20
CO2 emissions from Caribbean hotels
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
CO
2 E
mis
sio
ns
(in
1,0
00
to
ns)
Hotel electricity consumption results in 4.23 million tons of CO2 emissions annually
Energy efficiency investment potential
Energy Conservation Measure Electricity
Saving (kWh) Electricity Cost
Saving (US$) Investment
Required (US$)
Lighting
209,319,375 52,329,844 127,982,404
Building Envelope and Air Conditioning
930,788,913
232,697,228 473,831,255
Guestroom Equipment
45,037,289 11,259,322 14,746,128
Office Equipment
46,875,534 11,718,883 12,635,980
Kitchen Equipment
48,471,358 12,117,840 27,111,185
Pool Pumps
75,861,861 18,965,465 39,195,295
TOTAL
1,356,354,330
339,088,582 695,502,247
CO2 emissions reduction potential
0
100
200
300
400
500
600
700C
O2
Em
issi
on
s O
ffse
t (i
n 1
,00
0 t
on
s)
1.9 million ton CO2 emissions can be avoided through EE actions
CO2 Emissions Factors
CO2 emission estimates – Pre EE
improvement initiative
based on average emissions intensity of
total electric sector generation for specified
countries or country-based regions and
include transmission and distribution (T&D)
losses incurred in delivering electricity to the
point of use.
CO2 emission factors (in tCO2/MWh)
Jamaica - 0.847, Cuba - 0.9, Dominican
Republic - 0.85, Netherlands Antilles –
0.796, Trinidad & Tobago – 0.755, Haiti –
0.347, Other Latin America – 0.584
CO2 emission estimates – Post EE
improvement initiative
based on average emissions intensity of
fossil-fired generation for specified countries
or country-based regions, but do not exceed
0.9 metric tons CO2e per MWh. Note that the
Avoided emissions benchmarks do not
include (T&D) losses.
CO2 emission factors (in tCO2/MWh)
Jamaica - 0.847, Cuba - 0.9,
Dominican Republic - 0.85, Netherlands
Antilles – 0.796, Trinidad & Tobago –
0.755, Haiti – 0.72, Other Latin America
– 0.705
Source: Voluntary Reporting of Greenhouse Gases. U.S. Department of Energy, Energy
Information Administration. Form EIA-1605 (2007).
Diesel/heavy fuel oil savings potential
1
10
100
1,000
10,000
100,000
1,000,000
Die
sel/
HFO
Sav
ing
in K
ilolit
er
Annually 590,885 kiloliters Diesel/HFO can be saved as a result of EE improvements
Capitalizing on EE in the Hotel Sector
• EE action for hotels in 25 Caribbean
states - Pick the low hanging fruits
• 25% of total hotels are properties with 120 rooms
or more
• Accounting for ~75% rooms & electricity use
• Total electricity use in the hotel sector is
4638 GWh
• Only six countries/territories account for ~73% of
the total electricity use
• 4.23 million tons of CO2 emitted annually
• Suite of EE measures in hotels can
reduce CO2 emissions by 1.9 million tons
annually.
Issues influencing hotel investment in EE
Overall hotel financial performance and indebtedness
Access to attractive long term financing
Preference for “top line” investment in expansions and
refurbishments
Lower first cost vs ROI or life-cycle costs
Uncertainty of EE technology/system performance
Availability of products and service providers
Technical capability of in-house staff and familiarity with new
technologies
Reluctance to include maintenance services in contract
Barbados case study
Barbados facts:
• Land area = 456 km3
• Population = 279,912
• 73 hotel properties
• 814 villas, 120 apartments, 28 guest
houses
• 5,500 total hotel rooms
• 2,340 villa rooms, 1,526 apartment
rooms, 169 guest house rooms
• Annual stay-over visitors = 550,000+
Barbados case study
65 detailed and walk-through audits
Distributed, grid-connected PV pilot demonstration
Assessment of existing financing sources
Hotel clean energy policy and action plan
Assist audited hotels apply to Smart Energy Fund
Caribbean hotel EE CDM program of activitiies
Impact of hotel EE on oil imports, CO2 emissions and utility
sales
Barbados hotel size distribution
Energy use in Barbados hotel sector
9%
91%
Electricity Consumption of the Barbados Hotel Sector
Hotel Sector Other sectors
Total electricity consumption in the island was 952
gigawatt-hours (GWh) in 2009. The 84 Hotels and
Guest Houses accounted approximately for 89 GWh,
or 9% of total electricity sales.
The average electricity tariff paid by hotels to the
power utility (Barbados Light and Power Co) lies
between 0.25 to 0.27 US$/kWh depending on the
rate (voltage) class.
Natural gas consumption in the hotels could
represent approximately between 16% to 20% of the
electricity consumption (or 14% to 17% of total
energy consumption)
Electricity expenditure for Barbados hotels
$107,690
$353,810 $548,204
$1,271,883
$1
$10
$100
$1,000
$10,000
$100,000
$1,000,000
$10,000,000
<= 50 51-100 101-200 >200
US$
/Ye
ar
# of Guestrooms
Electricity Use Index
0
20
40
60
80
100
120
140
0 50 100 150 200 250 300
kWh
/Ro
om
Nig
ht
Hotel Size (# of Guestrooms)
Electricity use index – Barbados hoteIs
Hotel Size (# of Guestrooms)
<=50 51-100 101-200 >200
High (kWh/Room Night) 122.7 111.4 81.1 109.7
Average (kWh/Room Night) 60.2 62.3 60.3 66.4
Low (kWh/Room Night) 12.2 23.7 40.0 40.5
# of Hotels (Sample Size) 17 4 3 3
Electricity end-use for Barbados hotels
36%
52%
60%
33%
13%
15%
7%
12%
7%
4%7%
9%
8%
11% 6%
5%
12%
5%5%
2%
5%
5%7%
15%
11%
4% 5%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<=50 51-100 101-200 >200
% E
lect
rici
ty e
nd
-use
Hotel size (# of Guestrooms)
Miscellaneous
Pool Pumps
Laundry
Hot Water
General Equipment
Kitchen Equipment
Refrigeration Equipment
Guest Rooms
Lighting
Air Conditioning
Overall Electricity Consumption by End-Use
Air Conditioning, 44.3%
Lighting, 12.8%
Pool Pumps, 12.4%
Kitchen & Refrigeration Equipment,
9.2%
Hot Water , 9.1%
Guestroom Equipment, 6.7%
General Equipment, 4.0%
Laundry, 0.7%Other, 0.7%
Electricity saving through EE implementation
0%
10%
20%
30%
40%
50%
60%
<=50 51-100 101-200 201-400 >400
Elec
tric
ity
savi
ng
(%)
Hotel size (# of Guestrooms)
Based on detailed audits completed for hotels in Barbados
Sample detailed audit recommendations
Energy Saving Opportunity Description
Initial Cost
($US)
Annual Cost
Savings ($US)
Payback Period
(years)
Annual Energy
Savings (kWh)
CO2 Saved
(Tons/yr)
Clean coils on fridges and freezers $ 960.00 $ 1,449.52 0.66 5,356 4.02
Turn off pool's Jacuzzi pump at night $ 100.00 $ 1,426.78 0.07 6,535 4.90
Install occupancy sensors in bathroom $ 14,400.00 $ 3,729.13 3.86 17,080 12.81
Properly insulate refrigerant-carrying copper
lines on 30 units $ 1,395.00 $ 469.65 2.97 1,847 1.39
Replace guest room Mini Split condensers with a
VRV system for cheaper cooling and free hot
water $177,300.00 $ 62,257.38 2.85 207,573 155.68
Replace Photocells with timers to save a half
hour of lighting power daily $ 500.00 $ 512.13 0.98 2,346 1.76
Retrofit Incandescent and Halogen bulbs to
CFL's and LED lights $ 18,415.00 $ 55,925.12 0.33 187,771 140.83
Install Variable Frequency drives on the pool
pumps $ 10,000.00 $ 6,955.54 1.44 31,858 23.89
Implement Corporate Utility Management
Program $ 12,000.00 $ 5,874.17 2.04 71,679 53.76
Install guest room controls $ 48,000.00 $ 15,602.80 3.08 56,993 42.74
Install an occupancy sensor in the Main
Restaurant $ 150.00 $ 573.77 0.26 2,628 1.97
Tint windows in guest rooms $ 22,100.00 $ 5,608.13 3.94 25,687 19.26
Replace 7.5 ton Packaged unit at Staff Quarters
with a VRV system producing hot water for staff
kitchen $ 12,000.00 $ 1,630.56 7.36 6,327 4.75
Sample energy audit findings
236 rooms, 23,673 m3 of serviced area
2009 occupancy = 54.4%
Energy use index = 127 kWh/GN, water = 1.87 m3/GN
Audit report recommended six (6) projects:
• Initial capital cost of US$ 1,358,465
• Total annual savings of US$ 589,592, 57% of total annual electrical
energy cost.
• Simple payback period = 2.3 years
• Internal Rate of Return - 37% over a seven year period
• Estimated 5 year savings = US$ 2,947,960
Value of detected water leaks equals US$470,000 per year
Impacts from hotel energy efficient savings
• Equivalent Barrels of oils saved in electricity generation:
• 49,200 Barrels per year
• Potential reduction of Greenhouse Gas emission:
• 28,600 CO2 tons per year
• Financial impact for the power utility (BLPC)
• US$ 8.2 Million reduced revenue per year as result of reduced
sales
• Fiscal impact for the government (without including grants)
• Reduction of US$ 3,7 Million per year in the annual imports –
exports deficit due to fewer oil imports.
Barbados hotel clean energy policy framework
The goal of the Barbados Hotel Clean Energy policy is to improve the
competitiveness and viability of the Barbados hotel sector through
increased energy efficiency and low carbon economic development.
Objectives:
• Reduce GHG emissions associated with hotel operations – reduction in CO2e
associated with reduced energy (electricity and gas) use – calculated based on the
difference from business as usual (without policy).
• Increase investment in cost-effective and proven energy efficiency and renewable
energy technologies – spending on green hotel design, efficient a/c, refrigeration,
water heating, appliances, lighting, solar hot water, PV. Data collected from
investment tax incentive filings.
• Improve the energy intensity of Barbados hotels (kWh per guest night) – reduced
kWhe per guest night for participating hotels – calculated from baseline (prior 24
months)
• Demonstrate and recognize the leadership of the hotel sector within Barbados (as
model for other sectors) and within the Caribbean (as a model for the tourism sector),
Expected impacts of clean energy policy
Growth in the Barbados clean energy industry (consultants, engineering
companies, equipment suppliers/distributors, service providers) – tax
revenue, employment
Reduced operating costs for Barbados hotels - expenditures on
electricity, gas and water
Improved balance of trade for Barbados through reduced imported
energy resources – expenditures on oil imports
Programmatic approach to reducing GHG emissions as a possible
example for other sectors in meeting national commitments
Greater awareness of and appreciation for energy efficiency and
renewable energy among hotel workers and the general public that can
be employed in their homes
Hotel clean energy policy scope
Physical plan for hotel development and associated infrastructure
Energy efficiency building codes for new hotels and
rehabilitations
Tax incentives for purchase of EE and RE products and services
Energy efficient labeling for hotel equipment
Hotel sustainability rating system (using EE and water use index)
Training programs for hotel management and staff
Utility feed-in tariffs for hotel RE installations
Financing for studies and investments in EE and RE
Barbados hotel clean energy policy framework
Barbados Tourism Master Plan (2012-2021) – environmentally-sound
sound tourism policies, strategies, projects and programs
Tourism Development Act (2002) – investment incentives
Barbados Sustainable Energy Policy Framework – energy
diversification, increased use of renewable energy and EE
Building Codes – guidelines for new commercial busines
Renewable Energy System Inter-Connection and Feed-in Tariffs with
Barbados Light and Power – pilot for < 50kW solar and wind
Energy Efficiency Retrofit and Renewable Energy Finance Facility
Hospitality Training – Hospitality Institute operates PomMarine Hotel
Sustainable Economic Development Policy - "Greening" the economy
GHG abatement under UNFCC National Communication
Energy efficiency value chain - traditional
Traditional approach
1. Best practices (no-cost measures)
2. Distribution (limited)
3. Procurement (locally available)
4. Installation (remove and replace)
Savings: 5-15%
Energy efficiency value chain - traditional
Proposed approach
1. Best practices (no-cost measures)
2. Studies (audits, feasibility studies)
3. Financing
4. Distribution (enhanced)
5. Procurement (EE rating)
6. Installation (trained, outsourced)
7. Operation and maintenance
8. Monitoring
9. Revenue from CERs
Savings: 35-50%
Integrated Value Chain Model - Carbon Trust
Near term advice on EE/RE technologies and loan
program to businesses to adopt “clean technologies”,
Long term venture capital support to emerging
technologies (or bringing together ventures that will
develop these technologies).
Carbon Trust accredits consultants (auditors) who
conduct “free” assessments.
This becomes the basis of the loan application. Carbon
Trust partners must meet the Carbon Trust Standard,
and can use their label in marketing.
Loan term = project payback period, $0 down, 0%
interest.
Questions and follow-up information
Thank you!!!
Caribbean Hotel Energy Efficiency Action (CHENACT)
Bill Meade - bill.meade@tetratech.com
Loreto Duffy Mayers – CHENACTProject@gmail.com
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