OPPORTUNITIES FOR BUSINESSES

TO DIRECTLY IMPROVE THEBOTTOM LINE THROUGH

ENERGY EFFICIENCY

3rd May 2010

Kees BrinkmanManaging Director

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INTRODUCTION

• Kees Brinkman:­ Managing­Director

­ Mechanical­Engineer­working­in­the­energy­field­for­20+­years

­ EMANZ­Accredited­Energy­Auditor

• Enercon is an Energy and Utility Consultancy ­ Based­in­Christchurch

­ Six­staff,­all­degreed­engineers

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DURING THIS PRESENTATION…

1. Why focus on reducing energy and carbon emissions?

2. Energy Management

3. Potential benefits of an Energy Audit­ What­are­the­potential­savings?

­ Our­experience­with­commercial­and­industrial­clients

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1. Why Focus on Energy and Carbon Emissions?

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REASONS TO FOCUS ON ENERGY?

• The economics are attractive!­ Energy­prices­are­increasing­all­the­time

­ Any­reduction­in­energy­cost­directly­impacts­on­the­bottom­line

• Once an Energy Audit is implemented, the cost of the audit is typically paid back in less than 100 days!

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INCREASING ENERGY PRICES

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REDUCING CARBON EMMISSIONS

• Reasons to reduce carbon emissions:­ Emissions­Trading­Scheme­leads­to­increased­costs

­ Combats­global­warming

• Ways to significantly reduce carbon emissions:­ Improve­energy­efficiency­(most­common­and­economically­attractive)

­ Switch­to­renewable­fuels­/­suppliers

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ENERGY MANAGEMENT SERVICES AVALIABLE TO IMPROVE THE BOTTOM LINE

• Main Services­ Scoping­and­Feasibility­Studies

­ Energy­Audits

­ Tariff­Analysis­and­Tendering

­ Monitoring­and­Targeting­Systems

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FURTHERMORE…

• Additional Services­ Greenhouse­Gas­Assessments

­ Fuel­Switching­Feasibility­Studies

­ Ongoing­Energy­Management

­ Audit­Implementation­and­Project­Management

­ Concept­Design­Reviews­

­ Demand­Side­Management­Analysis

­ Cogeneration­System­Analysis

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3. Energy Management

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Energy Consumption and Degree Days

Gas­consumption Electricity­consumption DDH

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WHERE TO START…

• Energy Audit Scoping Study­ Review­the­consumption­of­all­sites­and­operations

­ Benchmark­the­figures­to­determine­the­most­efficient­path

­ Identify­sites­in­need­of­Level­2­Energy­Audit

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Normalised Energy Consumption Across Sites

Coal & Wood Gas LPG Diesel Electricity

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LEVEL 2 ENERGY AUDIT – PROCESS

1. Energy Use Analysis­ Calculate­historic­energy­use­and­review­bills

­ Determine­where/when­energy­is­consumed

­ Find­target­areas­for­energy­reduction

Lighting25.4%

Downtown Chiller5.6%

Downtown Electric Boilers10.8%

Fans4.8%

Domestic Hot Water7.5%

Miscellanious6.7%

Electric Heating26.3%

Pumping4.6%

Office Equipment8.3%

Electricity Split by Equipment Type

Total Consumption: 3,571,600 kWh/yearTotal Cost: $452,700/ year

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LEVEL 2 ENERGY AUDIT – PROCESS

2. Site Visit­ Kick-off­meeting

­ Day-time­inspections,­including­metering­where­appropriate

­ Afterhours­inspections

­ Closure­meeting

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LEVEL 2 ENERGY AUDIT – PROCESS

3. Technical Analysis­ Perform­an­energy­split­to­determine­where­energy­is­used

­ Calculate­savings­from­Energy­Management­Opportunities

­ Contact­contractors­to­obtain­capital­costs

EMO ActionCapital

CostAnnual savings

Simple Payback

1.1 Reduce­the­site­Capacity­Charges Low $6,700 Immediate

1.4 Improve­Cooling­Tower­controls $9,000 $15,900 0.5­years

1.7 Turn­off­equipment­at­night Education $1,400 Immediate

6.1a Install­lighting­controls­-­T1 $2,500 $4,800 0.5­years

$11,500 $28,800 0.4 yearsTotal – T1

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LEVEL 2 ENERGY AUDIT – PROCESS

4. Draft report­ Client­has­opportunity­to­review

5. Review Meeting

6. Final Report

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THE NEXT STEP…

• Monitoring and Targeting­ Monthly­review­energy­consumption­and­bills­for­each­site

­ Compare­consumption­and­cost­against­predicted

­ Make­recommendations­towards­changes­needed

• Perform Tariff Reviews­ Ensure­the­most­cost­effective­tariff­is­utilised­

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4. Potential Benefits…

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ENERGY AUDIT POTENTIAL SAVINGS…

•Opportunities; less than one year payback­ Typically­2­–­10%­energy­savings

•Opportunities; between one and three year payback

­ Typically­2­–­10+%­energy­savings

•Opportunities; greater than three years­ Depends­on­the­process­ Are­still­investigated­despite­the­long­payback­ May­have­production­advantages

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CASE STUDY – Large MDF Plant

• Total Identified Savings­ $1.4­million­energy­savings­annually

­ 0.5­year­average­simple­payback

­ Reduced­annual­carbon­emissions­of­2,000­tonnes­(11%)

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CASE STUDY – Office Building

• Total Identified Savings­ 13.2%­energy­savings­annually

­ 2.8­year­average­simple­payback

• Major Opportunities Found­ Improve­AHU­control­and­lighting­efficiency

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CASE STUDY – Canterbury Museum

• Kelvin Nolly­ Could­not­be­here­today

• Total Identified Savings­ $79,000­energy­savings­annually­(36.9%)

­ $2,500­implementation­cost

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CASE STUDY – Canterbury Museum

• Opportunities­ Optimising­the­electricity­demand­controls­on­the­BMS

­ Reducing­fresh­air­being­supplied­to­spaces­when­not­required

­ Switching­off­plant­at­night

­ Fixing­the­humidity­controls­for­AHU9

Lighting26%

Miscellaneous4%

Under­Floor­Heating6%

Electric­Heating­(AHUs)42%

Fans­&­Pumps13%

Cooling6%

Humidifiers3%

Canterbury Museum - Energy Split

Consumption:­1,840,000­kWh/yrCost:­$188,000/yr

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CASE STUDY – Canterbury Museum

• Daily Load Profile1.­Under­floor­heating

2.­Office­loads

3.­Space­heating

4.­Base­load

5.­Day­lighting

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Canterbury Museum - Average Daily Electricity Demand Profile

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CASE STUDY – Canterbury Museum

• Optimising BMS electricity demand controls­ Saved­$34,000

­ BMS­load­shed­HVAC­systems­to­avoid­Control­Period­demand­charges

­ Another­program­was­installed­to­avoid­spot­prices­which­conflicted­causing­large­Network­Charges

­ Solved­by­prioritising­programs­or­avoiding­spot­market

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Any Questions???