Electrical Distribution SolutionsEnergy Solutions without Risk

9 Steps to Reduce Energy Input Costs

Larry GoodRegional Vice PresidentGESI<lgood@ges-intl.net>January, 2007

The Goal

Energy Cost Reduction

through

Energy efficiency

Alternatives

Reliable services

Productivity

How to Reach the Goal

1. Request

2. Energy Audit

3. Business Plan

4. Due Diligence

5. Design

6. Procurement

7. Implementation

8. Commissioning

9. Follow-up

1. Request

Tell us you are interested.

Discuss your goals.

Walkthrough - 1st client meeting & quick inspection

Define what is possible.

Agree on a course of action.

Proposal - Scope of work & price proposal

1st Contract - 2 signatures

2. Energy Audit

Definition: a feasibility study to find and recommendenergy & cost reduction opportunities

Procedure:1. 3 site visits - Investigation, identification of savings

opportunities from interviews, records, measurement and data logging

2. Research - Market search for feasible technical solutions

3. Analysis - Definition of measures, determination of feasibility

4. Report - Comprehensive set of recommendations

5. Presentation - Personal explanation of audit report to client

Energy Audit (cont.)

Result: a report explaining recommended opportunities measure by measure

Indicators:• IRR• NPV• Energy savings• Cost savings• Investment• Emissions reductions

Objectivity:• Auditor is independent of other vendors; sells no product.• Auditor represents best interests of client.

3. Business Plan

Only necessary for large projects

Gives investors security

Either whole business or project specific

Defines type of contract between client and GESI

4. Due Diligence

Financial credibility

Insurance, permitting and licensing issues addressed

Binding legal agreement

Agreement by all to move forward

5. Design

Begins with audit analysis

Measurement & calculation

Equipment specification

Less effort with Level 3 audit, more with Level 2 audit

6. Procurement

Depends on type of contract

Procedure determines timeframe.

GESI’s responsibility in performance contract

Client’s responsibility in other contract types

Full competitive, partial competitive or sole source

GESI assists as requested.

7. Implementation

GESI builds project according to design

Schedule set by suppliers’ delivery and scope of labor

Performance contract: Full responsibility on GESI

Non-performance contract: Progress payments in clearly defined stages

8. Commissioning

Start-up

Testing

Performance verification

Correction of defects

Acceptance by client

9. Follow-up

Measurement & verification (M&V) – verifies savings

Preventive maintenance (PM) – preserves savings

Follow-up depends on type of contract.

Hard requirement for performance guarantees (risk on GESI)

Optional for other arrangements (risk on client), as requested by client

Case Study 1.US ENVIRONMENTAL PROTECTION AGENCY (EPA)NATIONAL VEHICLE AND FUEL EMISSIONS LABORATORY

1. Installed two York Millennium two stage absorption chiller/heaters rated at 440 tons and 575 tons of cooling, respectively, a new cooling tower, and one 3200 MBtu/h Bryon hot water generator.

2. Installed 34 air handling units (AHUs), customized according to planned operation.

3. Installed a 1200-point energy management system.

4. Replaced old motors with high-efficiency equivalents.

5. Converted once-through cooling water systems to closed loop cooling.

6. Installed power factor correction.

7. Installed a 200-kW ONSI fuel cell.

Reductions (EPA Case Study cont.)

Annual energy cost by 60%

Annual water consumption by 60%

Goals (EPA Case Study cont.)

1. Meet or exceed Federal energy reduction mandates

2. Reduce power plant source emissions

3. Optimize energy cost savings.

4. Restore obsolete and aging infrastructure.

5. Eliminate or replace chlorofluorocarbons (CFCs)

6. Minimize energy waste

7. Maximize the use of the waste energy streams, to feed other processes

8. Use renewable energy (photovoltaic, solar thermal, passive solar, biomass, wind, geothermal, hydropower, and other alternative technologies, such as cogeneration, where cost effective).

Costs & Savings (EPA cont.)

$11 million investment by ESCO

22 years of complete system operation and performance guarantees

Annual contract payments of $1 million

Includes $200,000 of annual operation & maintenance

Case Study 2.Dallas/Fort Worth International Airport (DFW)

Rusty T. Hodapp, P.E., CEM, CEP, LEED,

Energy & Transportation Management Vice President,

Dallas/Fort Worth International Airport

DFW Airport Overview

Jointly owned by Cities of Dallas and Fort Worth

Opened in 1974

The world’s 2nd largest airport encompassing 18,000 acres including 9,000 acres of natural resource areas

Ranked third worldwide in operations totaling over 804,000 annually

Ranked sixth worldwide in serving 60 M passengers

Energy Efficiency Program (DFW cont)

Initiated in 1975

Based on 3 Primary Elements

1. Sound operation and maintenance practices

2. Retrofits where economically and technically feasible

3. Incorporation of energy efficiency into new construction

Dedicated Energy Engineer/Manager since 1979 (Energy Engineer and Analyst added in 2003)

Energy consumption avoided to date is estimated at over 25 trillion BTU (~5 million barrels of oil)

Major Drivers of EE at DFW

Economic Benefits

Air Quality Benefits

Risk Management

Load Growth

Deregulation

Service Reliability

Energy Management Legacy (early adopter)

EE in Retrofits (DFW cont)

RetrofitsTerminal B

Recommendations

- Lighting Retrofit, including auto-dimming ballast & motion sensors

- Replacing and integrating EMCS

- Controls Upgrade on Passenger Loading Bridge AHUs

Estimated Results

- Energy Savings -4.3 million kWh/ yr (17%)

- Simple Payback -5.5 years

EE in New Construction (DFW cont)

District Energy Plant Upgrade Project

Thermal Energy Storage Tank- 56 ft. tall & 138 ft. in diameter

- 6 million gallons- 90,000 ton-hours- Ability to shift a minimum of 5 MW off-peak

Centralized Pre-Conditioned Air System- 12,000 tons Cooling

- 51 MMBtu Heating

EE in New Construction (DFW cont)

Conclusion

Today: Energy security a serious concern for countries dependent on single fuel sources.

Efficiency reduces dependency.

Redundancy reduces risk.

Average 20% global energy price rise

Will continue, not recede

Competitive edge

Never wait to decrease costs and increase reliability.

Thank you!

CONTACT

Larry GoodRegional Vice PresidentGESIemail: <lgood@ges-intl.net>