Energy Efficiency Building Retrofit, July 28, 2010, Ho Chi Minh City
Transcript of Energy Efficiency Building Retrofit, July 28, 2010, Ho Chi Minh City
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
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
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
+84 (0) 46 273 6780