Seminar On Energy Efficiency For Sustainable Business
For TNB Prime Consumers
28th January 2014
Puteri Pacific Hotel
Johor Bahru
Corporate trends & potentials for energy savings to increase profitability
Barriers and counter measures for organizations to implement EE
Key success factors & steps to reduce energy costs
Support measures required from the government
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?
Energy efficiency potential used by sector in the New Policies Scenario 2/3 of the economic potential to improve energy efficiency remains
untapped in the period to 2035
Source: ESCO
TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA
17% reduction of electricity bill in 2011 based on 2010 baseline consumption – SEDA Malaysia
160 companies - 60% of Ireland’s industrial energy use
2% improvement in energy performance per year
Long-term members - have improved energy
performance by 33% (1995 and 2010)
Energy Management Standard helps up to €150m in
avoided energy costs (2005-10)
SOLID FOUNDATION WILL
ENSURE SUSTAINABLE RESULTS
SAVING POTENTIALS
Pumps (25% - 35%)
Chiller (20% - 25%)
AHU/FCU (25% - 35%)
Cooling Tower(15% - 20%
Lighting System (40-60%)
(Source: Energy Conservation Centre of Japan, 2011)
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
•Uncertainty in economic & regulatory framework
•Vague expectations
•No/Short term policy
GENERAL ISSUES
• Lack of tangible assets as collateral/guarantee
• Pressure &demand for short payback period
FINANCIAL SUPPORTS
• Time &human resources
• Inadequate technical know-how Resources
• Poor/inaccurate estimation of energy saving potentials
• Lack of reference data (baseline/benchmarking) INFORMATION
• Lack of competent & reliable service providers TECHNICAL SUPPORTS
& ADVISORY
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.
MANAGEMENT
COMMITMENT
ENERGY
POLICY
PLANNING
IMPLEMENTATION &
OPERATION
SYSTEM &
PERFORMANCE
CHECKING
MANAGEMENT
REVIEW
Energy saving
measures – to bring
results in improving
energy performance & cost reduction!
• 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
MEA
SU
RES/P
RO
JEC
TS
TECHNICAL
VIABILITY
FINANCIAL VIABILITY
SUSTAINABILITY PLAN
Expertise/
Competency
EnMS
(ISO 50001)
Performance
M&V
Financial
criteria &
sources
Clearly state the
VALUE
PROPOSITION
upfront
Briefly describe
THE WAY THE
BUSINESS CASE
PROPOSAL WAS
DEVELOPED
Describe
TECHNICAL
CHANGES
REQUIRED &
relevant
planning issues
List & describe
all key COSTS &
BENEFITS
State key
project risks &
how to manage
them
Describe the
FUNDING/SUPPO
RTS that being
sought
EE projects aimed to reduce energy costs TO INCREASE PROFITABIITY!
Must be strategically prepared to get the approval from the top management to IMPLEMENT!
The presentation to precisely address: what they like to hear, see & talk
about
what is the return from the investment & how soon they can get back the return
what are the risks & measures to mitigate the risks
how to get the savings(may be the only technical element in the presentation)
decisions/total fund required to
kick-off the project
Decisions will be based on what
THEY WANT TO HEAR rather than
what YOU WANT TO PRESENT!
PRESENT LIKE A GREAT SALES MAN!
ISO 55000
An overview of the subject of
asset management and
the standard terms &
definitions to be used
ISO 55001
The requirements
specification for an integrated,
effective management system
for assets- defines
requirements for
a management system
IS0 55002 provides
Guidance for the
implementation the system
ISO50001:2011 Energy
Management Systems - Requirements With Guidance For Use
En
erg
y
pe
rfo
rma
nc
e
imp
rov
em
en
t
for
en
erg
y
usi
ng
se
rvic
es
To be launched in Jan/Feb 2014
WHAT’S NEXT?
Solution or technology based approaches?; or
Project based ; or
With corporate
sustainable energy management program
with action plans, clear
targets & strategies?
To view energy efficiency as an
industry with its own economic
potentials
Clear policy goals & targets
Strong governance &
comprehensive framework
Consistency, accountability &
competency with One-Stop
Centre Agency
Inclusiveness in policies
development & reviews
Technical Assistance
& Advisory Incentives & Financial
Assistance
SMEs & SMIs - energy audit & guidance
Technical assessment by the competent agency on EE projects for financing purposes
Measurement & verification of performance
deployment of experts for technical assistance & advisory
Continue & enhance fiscal incentives
Business friendly & transparent procedures & evaluation criteria
Low interest loans with
dedicated revolving fund for EE projects.
Grants based on annual government budget for specified initiatives 7 awareness programs
INTRODUCTION
&
AWARENESS
IMPLEMENTATION & SUPPORT MEASURES
PERFORMANCE
MONITORING&
MEASUREMENT
IMPROVED
•Energy
Performance
•Competitiveness
•Profits
•Environmental
quality
REDUCED
•Energy
consumption &
costs
•Pollution
•CO2 emissions CREATED •Business & job opportunities
•More experts/workers from energy efficiency industry •New source of economic growth •More Direct Domestic Investments
THANK YOU!