Kaua`i Kaua`i Kaua`i Kaua`i Kaua i Kaua i Renewable Energy Renewable Energy

Kaua i Kaua i Renewable Energy Renewable Energy

ConferenceConferenceConferenceConference

Miles KuboMiles KuboPresident/COOPresident/COO

September 8 2008September 8 2008September 8, 2008September 8, 2008

Energy ConservationEnergy Conservation

…is consciousness and action

Turn off a light

Walk a flight of stairs

Shut down computers

Unplug phantom loads

Reduce, Recycle, Reuse

Do: Energy Efficiency

Energy EfficiencyEnergy Efficiency

…is action withoutconsciousness

Low-wattage lighting

High-efficiency equipment

Sensors and controls

Demand limiting

Hybrid vehicles

Reuse waste heat

RebatesSustainability Conservation

Energy Assessments

CapitalBudgetingAssessments g g

Energy

EfficiencyEnergy

Finance ECMs

Savings

S l i th P lS l i th P l

Renewable Energy

Solving the PuzzleSolving the Puzzle

Electricity Costs:WA 4 ¢ ~ 10 ¢ kWh

CA 12 ¢ ~ 18 ¢ kWh

HI 22 ¢ 40 ¢ kWhHI 22 ¢ ~ 40 ¢ kWh

Energy Awareness

Cost of Light100 Watt Incandescent Lamp100 Watt Incandescent Lamp

24/7 in Lihue

$ 400$ 400 per year

Energy Awareness

Cost of Light$$$$Light Bulb (incandescent lamp)Light Bulb (incandescent lamp) $ 0.50$ 0.50

7 replacements lamps (1000 hr)7 replacements lamps (1000 hr) $ 3.50$ 3.50

Light Bulb (incandescent lamp)Light Bulb (incandescent lamp) $ 0.50$ 0.50

7 replacements lamps (1000 hr)7 replacements lamps (1000 hr) $ 3.50$ 3.50

7 replacement labor ($10 ea)7 replacement labor ($10 ea) $ 70.00$ 70.00

Power (100w * ~37¢kWh * 24/7)Power (100w * ~37¢kWh * 24/7) $320.00$320.00

7 replacement labor ($10 ea)7 replacement labor ($10 ea) $ 70.00$ 70.00

Power (100w * ~37¢kWh * 24/7)Power (100w * ~37¢kWh * 24/7) $320.00$320.00$400.00$400.00$400.00$400.00

Alternative (26w CFL)Alternative (26w CFL) $ 90.00$ 90.00Alternative (26w CFL)Alternative (26w CFL) $ 90.00$ 90.00

Energy Awareness

Cost of Light100w incandescent100w incandescent 876 kWh876 kWh

26w CFL26w CFL 228 kWh228 kWh

100w incandescent100w incandescent 876 kWh876 kWh

26w CFL26w CFL 228 kWh228 kWh

kWh reductionskWh reductions 648 kWh648 kWhkWh reductionskWh reductions 648 kWh648 kWh

CO2 reductionCO2 reduction 1,244 lbs1,244 lbs

C t f EElectricity Costs: US and Hawaii

Cost of Energyy

2035

40

45

HELCO

KIUC

20

20

202

200

2008

008

25

30

35

per k

Wh

MECO

HECO

200

005

05

05

008

8

10

15

20

Cent

s p

US Average 0

5

0

5

10

US Average HECO MECO HELCO KIUC

0805

US Average HECO MECO HELCO KIUC

Source: HI DBEDT

Energy Usage in Hawai`iCommercial Facility Electricity Use

70%70%Building

S tSystems

Source: HECO

Energy Efficiency Works5,500

5,000

5,250LIGHTING RETROFIT COMPLETED Average reduction of

415 kWh/Day.At 22¢/kWh

savings $33,000/year.

4,500

4,750

4,000

4,250

3,500

3,750

P b kP b k

Financial MetricsFinancial MetricsPaybackPayback

Measures Time to Recover Initial Cost

Net Operating Income (NOI)Net Operating Income (NOI)Measures Profitability Measures Profitability

Internal Rate of Return (IRR)Internal Rate of Return (IRR)Meas es Pe centage Ret nMeasures Percentage Return

Net Present Value (NPV)Net Present Value (NPV)Measures Time-Adjusted Dollars

Cumulative Cash Flow 10 Years

A Comparison of Value - $1,000 Investment

(A) Cumulative Cash Flow – 10 Years

(A) 10-year Bond yielding 10% (B) Lighting Retrofit – 20 Fixtures

(A)

(B) Lighting Retrofit 20 Fixtures(C) Lighting Retrofit – (Leased)

(B) (C)

M i 10% Energy LeasedBond Project Project

Measuring“Value”

IRR 10% 46% ∞

Payback 10 yrs 2.3 yrs 0 yrs

IRR 10% 46% ∞

Cash Flow $1,000 $2,502 $2,291

Net Present Value@ 8% $124 $1,320 $1,305

@ 10% $ 0 $1,130 $1,149

@ 12% -$101 $ 968 $1,017

Energy Efficiency Case StudyEnergy Efficiency Case Study

Various Energy Conservation MeasuresVarious Energy Conservation Measures $2,000,000 Renovation

Energy Efficiency Case Study

ECM 1 R l C t l Pl t / Add VFDECM 1: Replace Central Plant / Add VFDs

ECM 2: Install Variable Primary Flow System

ECM 3: VFDs on AHUs and Cooling Towers

ECM 4: Install Energy Management Controls

ECM 5: Replace Heat Pumps

ECM 6: Replace Condenser Water Pumps

ECM 7: Solar Panels for Pool Heating

6 Other ECMs Recommended

Energy Arbitrage Case Study

3.9 Yr Payback

32% IRR

$1.4 Million NPV

Energy Arbitrage Case Study

0 Yr Payback

∞ IRR

$1 4 Million NPV$1.4 Million NPV

$252,737$252,737

FINANCIAL SUMMARY

Energy Arbitrage Case Study

FINANCIAL SUMMARY

Annual Reduction 1,850,000 kWh

Utility Incentive Rebate $168,000

A l Utilit Bill S i $444 000Annual Utility Bill Savings $444,000

Annual Lease Payments $372,000

$72,000

Energy Arbitrage Case Study

“What is $72 000 of Energy Savings“What is $72 000 of Energy SavingsWhat is $72,000 of Energy SavingsWhat is $72,000 of Energy SavingsWorth in Sales Revenue?”Worth in Sales Revenue?”

fIf Net Operating Income is …

10%...10%... $720,000 or 2,400 Room Days$720,000 or 2,400 Room Days$ , , y$ , , y

5%...5%... $1,440,000 or 4,800 Room Days$1,440,000 or 4,800 Room Days

2%...2%... $3,600,000 or 12,000 Room Days$3,600,000 or 12,000 Room Days

Room is $300/day

LightingT5

Incandescent

T8

T5

T12

Linear Compact Fluorescent

Compact Fluorescent

Cold Cathode Compact Fluorescent

Lighting Exit Signs

Signage Light-emitting

Diode

Signage lighting

Traffic Lights(LED)

Traffic Lights

Accent lighting

R f i ti Refrigeration lighting

Vehicle LightsVehicle Lights

LED vs MR16

Occupancy Sensors

Passive infrared (PIR)

Photocells for Daylighting

60% to 80% reductions in storage and low occupancy rooms

Building Automation Controls

i i l bl hDigital Programmable ThermostatsThe #1 Energy Conservation Measure

Open-source Energy Open source Energy Management Systems

HVAC, Lighting, Access, Process Controlsh h h h ldDo things when they shouldbe done, not when the manpower is available

fMonitoring & VerificationMonitor a chain of facilitiesRank order based on energy use

V i bl F D i d Variable Frequency Drives and NEMA Premium Motors

Variable Primary FlowCooling Towers

Booster Pump Amps

10 00

12.00

14.00

16.00

18.00

20.00

ump

Amps

New Booster Pumping System Installed

Booster Pump Amps

10 00

12.00

14.00

16.00

18.00

20.00

ump

Amps

New Booster Pumping System Installed

gChillersRefrigeration Systems 0.00

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FansAir Handing/Fan Coil unitsB i Booster pumping systemsWater feature pumpsCompressorsCompressors

New Technologies

TurboCor CompressorsTurboCor CompressorsOil-lessSmall Tonnage VFD Centrifugal Compressors

High Efficiency Chillers

New Technologies

Intelligent Voltage RegulationIntelligent Voltage RegulationIntelligent Refrigeration ControlsIntelligent Fume Hood ControlsIntelligent Fume Hood ControlsDemand Curtailment SystemsVending Machine ControlsCO2 Monitoring Controls

R bl d Di t ib t d Renewable and Distributed Power Generation

CHP – Co-genPhotovoltaicPhotovoltaicConcentrated

Solar PowerFuel CellsIn-Line Hydroh lThermal Energy

StorageMicro TurbinesMicro Turbines

- Rules -

Just because it “sounds too good to be true”, doesn’t mean it is.

All capital improvement projects are not equal.

Preserve capital improvement budgets for other essentials.

If you think you can’t afford it, Think Again!g

Remember…

Energy is EssentialEnergy is Essential…your Demand will Grow

Deal with it!Deal with it!Deal with it!Deal with it!

THANK YOUTHANK YOUTHANK YOUTHANK YOUTHANK YOUTHANK YOUTHANK YOUTHANK YOU

miles.kubo@energymiles.kubo@energy--industries.comindustries.com