Energy Efficiency Building Retrofit

Workshop: Developing a Low Carbon EconomyHo Chi Minh City – July 28, 2010

Clinton Climate Initiative (CCI)

Mission:

“Make a difference in the fight against climate

change in practical, measurable, and

significant ways”

Goal: Reduce Greenhouse Gas Emissions

Established by President Clinton in 2006 under the William J. Clinton

Foundation

Non-profit – no financial incentive

Implementing partner of the C40 Cities Climate Leadership Group

The C40 Cities Climate Leadership Group

40 Member and 19 Affiliate Cities

CCI Programs

Vietnam Program

Waste Management Program

Outdoor Lighting Program

Energy Efficiency Building Retrofit Program (EEBRP)

Transportation – Electric Motorbikes

Other Global Programs

• Transportation – Electric cars, BTR, CNG buses

• Solar Energy

• Carbon Carbon Capture and Storage

• Forestry

www.clintonfoundation.org

5

Buildings = GHG Emissions

Why Building Retrofit?

76% of all power plant-generated

electricity is used to operate

buildings globally.

The Buildings Sector accounts for:

30% - 40% of global energy use

50% - 70% of GHG emissions in urban

areas

15% global GHG emissions

Improving existing building

efficiency is among the most cost-

effective ways to mitigate CO2

US CO2 emissions from energy use by sector

Source: Energy Information Administration Statistics, Pew Center for Global Climate Change

Bangkok 34%

Hong Kong 55%

New York 79%

Vietnam? HCMC?

EEBRP Target Projects

1. Buildings owned by the Private Sector

• Commercial Office Buildings

• Shopping Centers/Department Stores

• Hospitals

• Hotels

• Schools & Universities

• Residential (high-rise condominiums)

• Factories/Industry

• Train stations/Airports/Ports

2. Buildings owned by Government

CCI’s EEBRP Model

Partner with recognized ESCOs (multinational) to

deliver project

Energy Performance Contracting (EPC) – guaranteed

savings

For building owner - cater to client’s needs and

preferences, limitations; offer transparency in process

and prices

Access to Purchasing Alliance – discount on latest

technologies

Explore different financing mechanisms

CCI’s Partnership Model

9

BUILDING

OWNERS

Energy savings

guarantee

Purchasing

Alliance

Implementing

Partners

Financial

Institutions

CCI Partners

*Conduct energy audits, perform building retrofits, guarantee the energy savings

º Preferential terms and conditions

ESCOs*

Vietnam/Regional/Global

Trane

Siemens

Schneider Electric

Regional/Global

Honeywell

Johnson Controls

Ameresco

Noresco

Regional ESCOs

Local ESCOs

Financial Institutionsº

(in process)

IFC (World Bank)

French Dev. Agency

(AFD)

ADB

Private Equity Funds

Building Envelope Products (3M) Window Film

Reflective Coatings

Insulation materials

Cooling (Trane) Chillers (high efficiency, modular, absorption)

Chiller Optimization

Lighting (Osram, Sylvania) Conventional

LED

Sensors

Specialty (emergency, street lighting)

Solar (Solartron) Solar PV

Solar Hot Water

Preferential Price Agreements between 5% - 70% discounts

Purchasing Alliance

*Accessible to new and old buildings

Debt Service/Loan Repayment = $1.5 M

Operation Costs After = $700,000/yearO

per

atio

n C

ost

s B

efo

re =

$1

M/y

ear

0 1 2 3 4 5 6 Year0%

50

%

10

0%

Savings – Positive Cash Flow

30% reduction in operation costs

Savings/year $300,000

Payback Period 5 years

Operation Costs Before $1 M/year

Project Cost $1.5 M

Project at a Glance:

Energy Performance Contracting (example)

High Rise Hotel, BangkokEnergy Conservation Meausre Cost Savings Payback

Upgrade Chiller Plant $125,714 $20,247 6.2

Variable Primary Flow $7,143 $2,069 3.5

Lighting Retrofit $91,996 $45,841 2.0

Energy Savings Hot water by heat pump $88,571 $18,546 4.8

Conversion of Electric heater boiler to LPG Gas Boiler $150,000 $64,724 2.3

Cooling Tower Optimization $22,923 $1,145 20.0

Update Chiller Plant on 52nd floor $129,943 $19,199 6.8

Convert to Variable Flow at Secondary pump $29,086 $7,747 3.8

Convert split A/C to Chilled Water coil in kitchen $9,137 $1,284 7.1

Total 654,514 180,801 3.6

Total sqm 41,547

Total utilities expense 1,247,772

Savings from baseline 14.5%

Total Greenhouse Gas Reduction 824 mtCO2e per year

Example A – Full Building Approach

From a Cost to an Investment From equipment to solutions

Role of CCI

Facilitate Project Development and Implementation• Connect building owners with ESCO & financial partners

• Ensure that owner’s interests and expectations are met

• Provide purchasing assistance and product discounts

Provide Technical Assistance• Share best practice examples and support at each stage of

project

• Connect owners to technical experts where required

• Assist engineering, finance, legal and procurement as needed

Facilitate Best Practice Sharing• EPC project development and implementation

• Introduce and/or inform on new and latest technologies

• Working with ESCOs and financial institutions

The CCI EPC Process

Measurement

& Verification

• Proposals are

reviewed and

the best is

selected based

on qualitative &

quantitative

criteria

• Project savings/

cost &

technologies

• Free of charge

• Detailed project

development,

energy design &

engineering

• Guaranteed Max

Price &

Guaranteed

savings

• Financial Criteria set

• Walk-away compensation agreed

upon

• Contract terms and conditions

set

1 2

IGA Contract

3 4 5 6

Final

Contract

Signed

Investment

Grade

Audit

Selection

Preliminary

Assessment+

Proposals

(RFP)

• Develop

scope and

objectives of

project

Initial Interest

/ Commitment

• Finalization of

project scope

• Competitive

quotations

• Transparent

pricing

• Project

implementation

plan

• Post-

implementation

M&V reporting

according to

IPMVP

CCI’s Projects

More than 200 projects and 2,000 buildings in 47 cities

CITY PROJECT

London, UK 42 buildings (municipal, police & fire stations)

Houston, USA 271 buildings

Victoria, Australia 16 buildings (considering co-gen, tri-gen)

Melbourne, Australia All buildings that consume 80% of energy in portfolio

New York, USA 190 Apartments (NY City Housing Authority)

Chicago, USA Merchandise Mart

Bangkok, Thailand 25 Hotel, Hospital, School, and Commercial Office

Projects

10 Shopping Centers

Shanghai, China 15 buildings with Xin Chang Ning

ACUPCC Over 500 Colleges and Universities

Case Study – Central Pattana, Plc. (CPN)

CPN is a leading developer, manager and investor of retail and commercial properties in Thailand. CPNs

green initiative includes 10 premium shopping centers, which are part of a landmark initiative to install large-

scale energy efficient chillers. This initiative will reduce CO2 emissions by more than 40,000 tonnes per year.

Project Detail:

Buildings: 10 shopping centers

Size: 697,038 m2

Estimated value: USD11 million

Energy savings: 16% of energy use for air conditioning

Payback: < 6 years

Project Team

ESCO: TRANE

Financing: Self-Financed

Milestones

October 2008: Contract signed

Next Steps 2009: Lighting retrofit

Central World Shopping Center in downtown Bangkok

Case Study – The Empire State Building, NYC

Project Detail:

Size: 2,500,000 ft2 or 250,000 m2

Estimated value: USD 20,223,382

Energy savings: USD 2.4 million/year

Percent savings: 38% savings from baseline

Payback period: 9.7 years

CO2 reduced: 105,000 metric tons/ 15 years

Project ECMs: Radiative barrier

Upgrade DDC

Tenant energy management

Window retrofit

Existing chiller retrofit

Project Team ESCO: JCI

Financing: 15-20 year loan from financial institution

Milestones Project launch: April 2009

Next Steps Implementation: 2009 - 2010

More information at: http://esbsustainability.com

Purchasing Alliance Case Study:

Saigon Tower, Ho Chi Minh City

Saigon Tower is a 17,000 m2 floor area office

building located in the City’s CBD

Worked in collaboration with 3M and Saigon

Tower to procure window film for the building

Covered 2,867 m2 of window area with 3M’s

Night Vision 25

Received a 11% discount from retail price via

CCI

Project has a 2.5 year payback

GHG emission reductions estimated at 176

tCO2e annually (assuming current systems)

Purchasing Alliance Case Study:

The Pullman Hotel, Bangkok

• Worked in collaboration with

Accor Group, Sylvania and The

Pullman Hotel to deliver a

lighting retrofit project

• Replaced 134 T8 lamps with

Sylvania T5 Replacement kits

• Received a 62% discount from

retail price, at 490 baht (14.4

USD) per lamp.

• Project has a 2.1 year payback

• Will reduce 28 mtCO2e over the

lamps’ lifetime

Thank You

www.clintonfoundation.org

Benny Tran

Country Director – Vietnam

btran@clintonfoundation.org

+84 (0) 46 273 6780