Energy Performance Contracting · 2017. 12. 6. · Section One: • Jonson Controls as an Energy Service Company (ESCO) • Reasons behind investment in Energy Efficiency . Section

Energy Performance Contracting

December 2017

Section One: • Jonson Controls as an Energy Service

Company (ESCO) • Reasons behind investment in Energy

Efficiency Section Two: • Fu n d i n g Op t i on s o f En er g y E f f i c i en c y Pr o j ec t s • En er g y E f f i c i en c y Per f o r m a n ce Con t r a c t i n g • M ea s u r em en t a n d Ver i f i c a t i on

Section Three: • Case Studies

Outlines

Johnson Controls Building Efficiency BE develops & deploys technology enabled building efficiency solutions

Credentials

Outcomes

$23 billion revenue in 2016

130 thousand people with over one thousand LEED professionals and 5000 energy experts

130 years of Innovation and more than 30 years in software development

Portfolio of more than 2 thousand high-performance heating, cooling & controls products and services

Microsoft Managed Global ISV and 2011 Partner of the Year Finalist; strategic alliances with IBM and Cisco

16 million metric tons of carbon dioxide reduction since 2000; equivalent of more than 3 million acres of pine forest

500+ renewable energy projects —solar, wind, geothermal

More than 100 thousand Metasys ™ building automation systems deployed worldwide

More than 1 million customers operating on every continent

1.5 billion square feet of real estate managed across more than 29 thousand sites

More than $5 billion in energy solutions guarantees

Building efficiency addresses a broad range of business needs Achieving better productivity, efficiency and sustainability

Building efficiency is complicated.

Different systems. Different networks. Different operators.

64 percent of respondents reported cost of smart building technology is the number 1 hurdle to investment* 44 percent of respondents reported information and skill-set gaps limit their capacity to investment*

Building Efficiency Stakeholders

Productivity

Efficiency

Sustainability

Building Efficiency Outcomes

The Problem Statement

CxO / Owner

Architect / Contractor

Facility Manager

IT Professional

Sustainability Officer

Occupant

*IDC Smart Building Global Market Forecast 2010-2015 (2011)

Evolution of ASHRAE standard 90.1 has been instrumental in achieving 30% in energy savings since baseline year 1990. Pacific Northwest National Lab (2010)

Benefits for High Performance Buildings • Operating costs reduced by 9% • Building value increased by 7.5% • Occupancy rates increased by 4.1% McGraw Hill (2010), CoStar Group (2008), US Green Building Council (2011)

Employees moving to LEED certified buildings were found to work an additional 39 hours annually, due to reduced stress and fewer allergic reactions. Michigan State (2009)

2017 Energy Efficiency Indicator survey Interest and investment in energy efficiency continues to increase globally

What is driving investments in energy efficiency?

What are the most effective policies driving investments in energy

improvement?

Building Systems Integration

Energy Security & Resiliency

More than 1,500 facility and management executives indicates that 70% of organizations are paying more attention to energy efficiency than a year ago.

Improvement Measures




improvement?





77% Cost Reduction 67% Greenhouse gas reduction 65% Increasing energy security 59% Customer attraction & retention




improvement?





52% Government policy continues to be important driver for investment. cent of organizations. 83% Identified building performance benchmarking and certification. 81% Identified government leadership in leasing, building design and retrofits




improvement?





46% Invested in building systems integration last year. 80% Plan to integrate their building systems in the future. The top four building systems that have already been integrated with other building systems: 1. Energy management 43% 2. Lighting 43% 3. Security 40% 4. Life safety 38%




improvement?





71% Maintaining critical operations during severe weather events or extended power outages is very or extremely important when considering future infrastructure investments. 54% Planning to achieve near zero, net zero or energy positive status for at least one building within the next 10 years. 52% Very or extremely likely to have one or more facilities able to operate off the grid in the next 10 years.




improvement?





75% Investments in heating, ventilation and air conditioning (HVAC) equipment was the most popular improvement made last year by respondents. 57% Planning to invest in onsite renewable energy in the coming year like roof top PV. 48% Planning to invest in electric storage in the coming year.

Finance of Energy Efficiency Projects Three basic ways to finance a utility project

Equity Lease Borrow

• Very simple mechanism. • Usually, the most LCC

effective. • The owner assumes all

the risk.

• Many resource options. • Owner assumes all risk

after covering the lender risk with high interest rates.

• Rental is tax deductible. • Will not own the assets at

the end of term.

Energy Efficiency Performance Contracting Energy and operational savings is enough to pay back for financing

Performance Contracting is a procurement tool that allows you to leverage your future guaranteed energy savings to pay for building improvements today

with minimized risk.

13

Lighting, water, HVAC, renewable energy, building Env upgrades, controls

Energy Saving Contract with Savings Analysis

Detailed audit Sophisticated analysis tools used to gather data and develop customized solution

Discussion to Identify Goals:

energy efficiency, emissions reduction, operational savings, water savings, etc.

Partnership commitment

Preliminary audit/Site visit

Reduce Maintenance

Lower Water Use

Reduce Emissions

Reduce Ops Budget

Lower Utility Use

Reduce Waste

Meet Customer Goals

Improvements such as:

Energy Benchmarking An approach to identifying Energy Efficiency opportunities

350 350

250 225

215 205

195 185

175 340 Re-commissioning

Retrofits Replacement

Testing and Balancing (TAB)

HVAC Enhancement

Lighting Improvement Controls

Upgrading (Calibration) Insulation

Improvement (Glazing) New

Base Load (eQUEST)

Energy Conservation Measures - ECMs

NEED

S IMPRO

VEMEN

T EXCELLEN

T G

OO

D

FAIR

kW/Yr/Sqm Energy Efficient Retrofit is an improvement made to an Existing Facility which provides an Increase in the overall Energy Efficiency

Measurement & Verification Programmatic annual validation of savings

Following the IPMVP; the measuring options are: Option A = Retrofit Isolation-Key Parameter Measurement Option B = Retrofit Isolation-All Parameters Measurement Option C = Whole Facility Measurement Option D = Calibrated Simulation

Measuring and Verifying energy consumption, energy demand (if needed) and energy cost savings produced as a result of the implementation of an energy conservation measure to ensure projects are successfully managed.

Case Studies of Energy Performance Contracting

Case study Dubai World Trade Center

Limited internal energy expertise

No defined energy strategy

First Performance Contract

No local frame work available

Challenges

Energy efficiency audit program

Dedicated energy professionals to drive program management

First Performance Contract in the region : Guaranteed Energy Savings

Phase 1: Customized CPO for 3 Plant Rooms with an ROI of 1.5 years

Phase 2: Chiller Replacement for 2400 Tons with Cooling Tower

Solutions

Energy Savings of 1.3 Million kWh/Annum with a pay back of 1.5 yrs

Carbon foot print of Reduction of 1.1 Million Co2/Annum

Innovative solution s: Customized CPO for 14 Chillers

Solution-based project more profitable than project based on cost + margin.

Set price based on savings VALUE.

Results

The Brief Maintain iconic image

Demonstrate transparent business case

Create replicable model for deep retrofits

Increase overall net leasable Value

Energy savings through Optimize operations and retrofits

Case study Doha City Center

Facts Johnson Controls was selected for Facility Management &

Operational Efficiency services

Guaranteed 11% savings in efficient Operations

Services Provided Energy:

Life Cycle Analysis

Energy data analytics,

Energy Management

System Management

HVAC & Building Automation

Security & Access, Fire & Life Safety

System Integration

Facilities:

Building service and maintenance

Grounds and security ,Cleaning, waste management

Results Achieving more than 20% savings in utility per month.

Carried out detailed space utility and energy survey to ensure accurate knowledge of space under management. Result: more transparency, greater level of detail and consistency

Ensuring successful business operations 24/7

Facility retro-commissioning and optimization

Every day the FM team manages more than 45,000 visitors.

Better management of its energy expenditure

Case study Energy Retrofit Ritz Carlton- Bahrain

Cut throat Competition

Equipment Matching the Load Profile rather than conventional Like to like replacement opportunity

Challenges

Detailed Energy Audit measuring plant overall efficiencies

Efficient Replacement program

Dedicated energy professionals to drive program management

Quick savings from operational improvement program to improve efficiency

Value added engineering for better selection of equipment

Solutions

Avoided competition / No completion

Better Customer relationship and Commitment

More pull through

Energy savings of 4 Million/Kwh/Annum with high efficient chillers

Results

The Brief Chiller Retrofit Programs

Existing YORK Chillers of installed capacity 2200 Tons has to be replaced

Life Cycle Analysis of Existing Chillers

Inefficient Operation

Energy Efficient Operation

1.10 1.15 1.20 1.25 1.30 1.35 1.40 1.50 1.55 1.60 1.65 1.70 1.75 1.80 1.85 1.90

AC

2.00

PLANT EFFICIENCY

THANK YOU

Documents

Energy Performance Contracting · 2017. 12. 6. · Section One: • Jonson Controls as an Energy Service Company (ESCO) • Reasons behind investment in Energy Efficiency . Section