proposed energy efficiency program at melaka malaysia by maesco
DESCRIPTION
Proposed program for intensive energy users at Melaka, Malaysia for implementing energy saving projects through Energy Performance Contracting and energy management system. A program jointly proposed by MIGHT, MAESCO and Melaka Green Technology Corporation in the smart city program.TRANSCRIPT
The presentation to members of Malaysian Association of Hotels Melaka
By
ZAINI ABDUL WAHAB Committee Member (Strategic Initiatives)
MAESCO
Hatten Hotel, Melaka 20th August 2014
EE Potentials in Malaysia & Building Facilities
Introduction to energy services & MAESCO
Options for energy cost savings through sustainable energy management implementation at building facilities
Overview of EPC Projects Implementation
What’s next?
Building owners can see reduced operating costs, increased building
values, greater return on investment, and higher occupancy from new and
retrofitted green buildings
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector
Companies may receive reputational benefits from achieving green building
certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a
business whose facility is certified as green, while 48% indicated that green
certification of a facility improves their image of a company.
University of Missouri researchers - consumers would be more
willing to pay between 15 & 20% more for retail products from
companies that support sustainable practices
UN Global Compact of 766 CEOs worldwide-93 % of
CEOs said sustainability issues will be a critical factor
to the future success of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount
of sustainability-related inquiries from investors in the past year. 70%
inquiries focused on energy management and greenhouse gas emissions
& more than ½ questions about sustainability reporting
Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the
benefits sustainability can bring to the business. 2/3 respondents said they are
involved in driving sustainability strategies .More than 50 % said their
involvement in pushing sustainable practices has increased in the past year.
IS ENERGY EFFICIENCY AN
OPTION OR A MUST DO NOW?
Clearly, the industrial and
commercial sector s offers
much higher savings potential Source: www.reexasia.com
Source: reexasia.com(Feb 2011)
Source: ESCO
TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA
17% reduction of electricity bill in 2011 based on 2010 baseline consumption – SEDA Malaysia
SAVING POTENTIALS
Pumps (25% - 35%) Chiller (20% - 25%)
AHU/FCU (25% - 35%)
Cooling Tower(15% - 20% Lighting System (40-60%)
EEPs viewed as “Infrastructure Investments” – LOW PRIORITY VS. CORE BUSINESS – don’t fix if not broken
EEPs funding through loans/debts WILL IMPAIR “CREDIT CAPACITY” from core business – NO WAY for SMEs/SMIs
BENEFITS ARE TOO SMALL TO APPEAR ON CEO’S RADAR SCREEN & to justify “perceived’ operating complexities/risks
NOT CONVINCED ON ACTUAL COST SAVINGS ACHIEVED nor aware of proven Measurement & Verification(M&V) methods to ensure sustainability of savings.
Profitability
Sustainability
Competiveness
Competency
Working environment quality
Corporate Image
Operating Costs - Energy
Risks – price fluctuation & supply shortages
Pollution
Carbon emission
Depletion of fossil fuel
INCREASE USERS’ COMFORT
SALES & ENERGY COST SAVINGS
BOOST IMAGE & VALUES
An Energy Service Company(ESCO) Develop and implement turnkey, comprehensive energy efficiency
projects
ESCOs offer performance-based contracts (i.e., contracts that tie the compensation of the ESCO to the energy savings generated by the project) as a significant part of their business
To ensure credentials, ESCOs must demonstrate the technical & managerial competencies to design & implement projects involving multiple technologies : Lighting
Motors & Drives
Heating & steam systems
HVAC Systems
Control Systems
Maximum Demand Controls
Building Envelope Improvements
…at building/industrial facilities
The Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) components includes ESCO Development Programs and ESCO participation in EE Technology Demonstration Projects
Industrial was chosen as the sector in which the greatest commercial and environmental impact could be achieved
MAESCO was registered with the Malaysian Registrar of Society in September 2000
Incorporated in conjunction with the launching of the MIEEIP by a Government’s implementation agency, PTM (Energy Centre of Malaysia) which is now known as Malaysia Green Technology Corporation(Green Tech Malaysia)
Energy Management Training Courses for Energy Managers
Workshop for Registered Electrical Energy Manager (REEM) Application
Rental of Equipment for energy audit and M&V
Awareness and promotional programs
Visits And Dialogues With Government and Key Stakeholders
Industrial Energy Efficiency For Malaysian Manufacturing Sector (IEEMMS) :UNIDO-SMECORP
Full range of services required for
comprehensive EE project implementation Energy Audit
Consultancy
Design of energy efficient systems
Implementation Project Financing
Implementation and Project Management
Construction management
Energy performance monitoring and verification
performance
Testing & commissioning
Operation & maintenance
M&V
Energy Performance Contracting
Energy Auditors
Energy Management Consultants
Energy Management/Energy Efficiency Expert Trainers
Energy Efficient Equipment Manufacturers/Suppliers
Energy Management Services/Technologies Providers
Total Facilities Management Services Providers
60 Registered Members
Investments for energy saving projects implementation using EPC model
Energy auditing services to identify energy saving measures
Capacity building programs – training in energy management system , system optimizations for management & technical groups
Consultancy/advisory services in Sustainable Energy Management System Development & Implementation based on ISO50001:2011 standard
Energy performance measurement & verification services
Awareness & promotional programs
ENERGY EFFICIENCY
IMPROVEMENT PROGRAM
Sustainable Energy Management
Awareness Program
Capacity Building –
Training & Development
HRDF refundable programs
Measurement &
Verification (M&V) Internal/3rd Parties
Adoption of Energy
Management System
(ISO50001)
Internal/Consultant
Energy Saving Project
Energy Auditing
Internal Budget
EPC Model
Full/matching grant – with commitment to
implement
Energy Saving Projects Implementation
EPC model
Standard
Procurement
SUPPORT
MEASURES
by the
government
Options To Save Energy Costs For Businesses
• Management Directives
• Implementation of EnMS - to ensure sustainability of energy cost reduction initiatives
MEASURES
With LOW/NO
COST
Minimal Cost
Savings
•Priorities of budget - core business/operations
•Investment risks
•Limited human resources & expertise
MEASURES WITH HIGH
COST
Significant Cost Savings
May require expert
assistance & external
financing
In-house
initiatives
EN
ER
GY
SA
VIN
G
PR
OJEC
TS TECHNICAL
VIABILITY
FINANCIAL VIABILITY
SUSTAINABILITY PLAN
Expertise/
Competency
EnMS
(ISO 50001)
Performance M&V
Financial criteria &
sources
MANAGEMENT
COMMITMENT
ENERGY
POLICY
PLANNING
IMPLEMENTATION &
OPERATION
SYSTEM &
PERFORMANCE
CHECKING
MANAGEMENT
REVIEW
Energy saving measures – to bring results in improving
energy performance
& cost reduction!
Energy saving projects implementation through direct investments by ESCO with “Zero Up front Cost” concept to the owner of building facilities
The returns from the investments will be used to pay back the ESCO only from the actual energy savings achieved from the implementation of energy conservation measures by ESCO based on shared- saving contract with conditions agreed by both parties.
Owner’s Share(10-30%)
ESCO’s share(70-90%)
(Loan & interest, O&M, spare parts, insurance, profit & etc)
EPC contract period BEFORE
Baseline Detailed
Energy Audit 100% saving enjoyed
by owner
After EPC contract period
Energy bill
saved
Develop EnMS & in-house capacity building
Implement EnMS & sustain saving
YEAR
EN
ER
GY
BIL
L
Implement EPC Project
Project Funding & Financing Options
Engineering & Economic Feasibility Studies
Project Design, Engineering & Permitting
Project Construction
Project Commissioning
Operation, spare parts & Maintenance
Performance measurements & monitoring
Energy performance reporting
EPC Contract Negotiation &
Signing
Install Data Logger/
permanent sub-meters
Collect energy data to establish energy
baseline values
Improve & optimize energy
consumption with energy
saving measures
Measure & monitor actual energy savings
achieved against agreed baseline values
Finance energy saving
improvements with no upfront
capital
Invest savings achieved into
other projects
ESCO to identify Energy
Saving projects
ESCO guarantee Energy
savings - the remuneration of
ESCOs is directly tied to the
actual energy savings achieved
Energy saving is shared between ESCO & the building owneras per agreed terms & payment
schedule with a single-source responsibility
ESCO supplies, installs, maintains & retain an on-going operational
role in measuring & verifying the savings over the contractual terms.
Use future energy ,cut operating
cost, be more competitive & improved comfort & productivity from upgraded systems
Positive environmental impacts & reduced environmental footprint
Experiences in EPC Projects /Track
Records in energy services
Financial Strengths
Management capacity in
energy services
Technical Competency &
Expertise
ESCO
To secure financing &
ensure sustainable operations
Item EPC-Shared
Saving Model
Cash
Purchase
Technical Expertise ESCO ESCO
Implementation(design, installation,
testing & commissioning) ESCO ESCO
Funding Source ESCO OWNER
Sharing of returns % At agreed % &
conditions
100% to
OWNER
Technical & Investment Risks ESCO OWNER
Energy Performance Maintenance &
monitoring works and risks ESCO OWNER
Savings at 40-60% from lighting system
Energy Saving Micro Ballast and HP Fluorescent T8-28
watts
LED Fluorescent Tubes LED Down Light
LED Ceiling Light High Performance
LED Street Light
LED Spot/Flood
Light
To confirm areas of interests by MAH
members for further actions with
MAESCO-MIGHT-Melaka GTC for the
next step
Commitment on support measures by
the government