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“SAVE THE PLANET,

SAVE YOUR MONEY:

CUTTING COSTS

THROUGH RESPONSIBLE

RESOURCE USE”

Caribbean Conference on Sustainable Tourism Development

Bermuda, April 2011

Bill Meade

Bill.Meade@tetratech.com

Topics

What the auditors found…

Energy efficiency and renewable energy technologies

Profile of the Caribbean hotel industry

Characteristics of energy use

Energy savings opportunities

Issues influencing hotel investment in EE

Barbados case study

Energy efficiency value chain

Wasted air-conditioning in guestrooms

Wireless door monitors Open patio doors in guestroom

Poorly maintained refrigeration and AC

Dirty refrigerator coil

Damaged condenser fins from unit on roof

Poorly maintained solar water heaters

Un-insulated hot water pipes

Accumulated on solar hot water heater panel

Bad practices in the kitchen

Walk in fridge door left open Tap left running in kitchen sink

Technology advances in bulb lighting

Incandescent

bulb Compact fluorescent

bulbs

Light Emitting Diode (LED)

bulb

Technology advances in tube lighting

LED tube T 8 fluorescent w/ magnetic

ballast

T 12 fluorescent tube

Technology advances in room air-conditioning

Mini-split A/C unit Inverter type mini-split

system

Integrated AC and hot water system

VRV system with hot water production Mini Split Compressors on the Roof

Room energy conservation devices

Automatic door closers Programmable thermostat

Occupancy sensor

Energy conserving window technology

Reflective window coating Double paned window Energy efficient louver

Energy conserving roof technologies

Spray-on roof insulation Roof ventilation products

Reflective roof coating

Solar energy technologies

Vacuum tube solar hot water

system Solar photovoltaic (PV) system

Solar energy technologies

Horizontal axis wind turbine Vertical axis wind turbine

Profile of the Caribbean hotel industry

Includes hotels, integrated resorts, villas, rental apartments

Ranges from properties < 10 rooms to mega-resort

complexes > 1,000 rooms

Owner, operated; locally and foreign owned; hotel chains;

government-owned

Licensed and unlicensed by national tourism authorities

Members and non-members of national and regional hotel

associations

All have similar energy end-use needs (e.g., lighting, air-

conditioning, etc.)

Profile of the Caribbean hotel industry

Country/Territory Hotel Properties Hotel Rooms Average Hotel Size

Anguilla 22 658 30

Antigua / Barbuda 60 4,452 74

Aruba 36 7,338 204

Bahamas 161 16,471 102

Barbados 73 5,506 75

Bermuda 29 2,416 83

British Virgin Islands 34 1,199 35

Cayman Islands 82 4,767 58

Cuba 167 41,054 246

Dominica 28 677 24

Dominican Republic 258 64,208 249

Grenada 55 1,773 32

Guadeloupe 162 11,148 69

Haiti 41 1,636 40

Jamaica 260 24,668 95

Martinique 76 5,888 77

Montserrat 8 249 31

Netherlands Antilles 118 9,881 84

Puerto Rico 174 15,692 90

St Kitts / Nevis 31 1,841 59

St Lucia 71 4,983 70

St Vincent / the Grenadines 48 1,029 21

Turks / Caicos Islands 43 3,042 71

US Virgin Islands 101 5,689 56

TOTAL 2,138 236,265 111

Average hotel electricity prices (US$/kWh) US average = 0.12 $/kWh

Average fuel adjustment (US$/kWh)

Oil-fired generation dominates the region’s utilities

0.000.00

0.030.14

0.180.17

0.370.21

0.190.00

0.150.15

0.110.16

0.240.08

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40

Trinidad

Suriname

St. Lucia

St Vincent

Jamaica

Grenada

Dominica

Curacao

Cayman

Belize

Barbados

Bahamas (2)

Bahamas (1)

Aruba

Antigua

Anguilla

Electricity consumption in Caribbean hotels

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

An

nu

al E

lect

rici

ty U

se b

y H

ote

l Siz

e (i

n G

Wh

)

>400201-400101-20051-100< =50

Caribbean hotels consume an estimated 5,660 GWH electricity annually

Electricity use in hotels less than 120 rooms

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

An

nu

al E

lect

rici

ty U

se b

y H

ote

ls <

120

ro

om

s (i

n 1

,000

MW

h)

80 to 119

40 to 79

20 to 39

<20

CO2 emissions from Caribbean hotels

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

CO

2 E

mis

sio

ns

(in

1,0

00

to

ns)

Hotel electricity consumption results in 4.23 million tons of CO2 emissions annually

Energy efficiency investment potential

Energy Conservation Measure Electricity

Saving (kWh) Electricity Cost

Saving (US$) Investment

Required (US$)

Lighting

209,319,375 52,329,844 127,982,404

Building Envelope and Air Conditioning

930,788,913

232,697,228 473,831,255

Guestroom Equipment

45,037,289 11,259,322 14,746,128

Office Equipment

46,875,534 11,718,883 12,635,980

Kitchen Equipment

48,471,358 12,117,840 27,111,185

Pool Pumps

75,861,861 18,965,465 39,195,295

TOTAL

1,356,354,330

339,088,582 695,502,247

CO2 emissions reduction potential

0

100

200

300

400

500

600

700C

O2

Em

issi

on

s O

ffse

t (i

n 1

,00

0 t

on

s)

1.9 million ton CO2 emissions can be avoided through EE actions

CO2 Emissions Factors

CO2 emission estimates – Pre EE

improvement initiative

based on average emissions intensity of

total electric sector generation for specified

countries or country-based regions and

include transmission and distribution (T&D)

losses incurred in delivering electricity to the

point of use.

CO2 emission factors (in tCO2/MWh)

Jamaica - 0.847, Cuba - 0.9, Dominican

Republic - 0.85, Netherlands Antilles –

0.796, Trinidad & Tobago – 0.755, Haiti –

0.347, Other Latin America – 0.584

CO2 emission estimates – Post EE

improvement initiative

based on average emissions intensity of

fossil-fired generation for specified countries

or country-based regions, but do not exceed

0.9 metric tons CO2e per MWh. Note that the

Avoided emissions benchmarks do not

include (T&D) losses.

CO2 emission factors (in tCO2/MWh)

Jamaica - 0.847, Cuba - 0.9,

Dominican Republic - 0.85, Netherlands

Antilles – 0.796, Trinidad & Tobago –

0.755, Haiti – 0.72, Other Latin America

– 0.705

Source: Voluntary Reporting of Greenhouse Gases. U.S. Department of Energy, Energy

Information Administration. Form EIA-1605 (2007).

Diesel/heavy fuel oil savings potential

1

10

100

1,000

10,000

100,000

1,000,000

Die

sel/

HFO

Sav

ing

in K

ilolit

er

Annually 590,885 kiloliters Diesel/HFO can be saved as a result of EE improvements

Capitalizing on EE in the Hotel Sector

• EE action for hotels in 25 Caribbean

states - Pick the low hanging fruits

• 25% of total hotels are properties with 120 rooms

or more

• Accounting for ~75% rooms & electricity use

• Total electricity use in the hotel sector is

4638 GWh

• Only six countries/territories account for ~73% of

the total electricity use

• 4.23 million tons of CO2 emitted annually

• Suite of EE measures in hotels can

reduce CO2 emissions by 1.9 million tons

annually.

Issues influencing hotel investment in EE

Overall hotel financial performance and indebtedness

Access to attractive long term financing

Preference for “top line” investment in expansions and

refurbishments

Lower first cost vs ROI or life-cycle costs

Uncertainty of EE technology/system performance

Availability of products and service providers

Technical capability of in-house staff and familiarity with new

technologies

Reluctance to include maintenance services in contract

Barbados case study

Barbados facts:

• Land area = 456 km3

• Population = 279,912

• 73 hotel properties

• 814 villas, 120 apartments, 28 guest

houses

• 5,500 total hotel rooms

• 2,340 villa rooms, 1,526 apartment

rooms, 169 guest house rooms

• Annual stay-over visitors = 550,000+

Barbados case study

65 detailed and walk-through audits

Distributed, grid-connected PV pilot demonstration

Assessment of existing financing sources

Hotel clean energy policy and action plan

Assist audited hotels apply to Smart Energy Fund

Caribbean hotel EE CDM program of activitiies

Impact of hotel EE on oil imports, CO2 emissions and utility

sales

Barbados hotel size distribution

Energy use in Barbados hotel sector

9%

91%

Electricity Consumption of the Barbados Hotel Sector

Hotel Sector Other sectors

Total electricity consumption in the island was 952

gigawatt-hours (GWh) in 2009. The 84 Hotels and

Guest Houses accounted approximately for 89 GWh,

or 9% of total electricity sales.

The average electricity tariff paid by hotels to the

power utility (Barbados Light and Power Co) lies

between 0.25 to 0.27 US$/kWh depending on the

rate (voltage) class.

Natural gas consumption in the hotels could

represent approximately between 16% to 20% of the

electricity consumption (or 14% to 17% of total

energy consumption)

Electricity expenditure for Barbados hotels

$107,690

$353,810 $548,204

$1,271,883

$1

$10

$100

$1,000

$10,000

$100,000

$1,000,000

$10,000,000

<= 50 51-100 101-200 >200

US$

/Ye

ar

# of Guestrooms

Electricity Use Index

0

20

40

60

80

100

120

140

0 50 100 150 200 250 300

kWh

/Ro

om

Nig

ht

Hotel Size (# of Guestrooms)

Electricity use index – Barbados hoteIs

Hotel Size (# of Guestrooms)

<=50 51-100 101-200 >200

High (kWh/Room Night) 122.7 111.4 81.1 109.7

Average (kWh/Room Night) 60.2 62.3 60.3 66.4

Low (kWh/Room Night) 12.2 23.7 40.0 40.5

# of Hotels (Sample Size) 17 4 3 3

Electricity end-use for Barbados hotels

36%

52%

60%

33%

13%

15%

7%

12%

7%

4%7%

9%

8%

11% 6%

5%

12%

5%5%

2%

5%

5%7%

15%

11%

4% 5%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<=50 51-100 101-200 >200

% E

lect

rici

ty e

nd

-use

Hotel size (# of Guestrooms)

Miscellaneous

Pool Pumps

Laundry

Hot Water

General Equipment

Kitchen Equipment

Refrigeration Equipment

Guest Rooms

Lighting

Air Conditioning

Overall Electricity Consumption by End-Use

Air Conditioning, 44.3%

Lighting, 12.8%

Pool Pumps, 12.4%

Kitchen & Refrigeration Equipment,

9.2%

Hot Water , 9.1%

Guestroom Equipment, 6.7%

General Equipment, 4.0%

Laundry, 0.7%Other, 0.7%

Electricity saving through EE implementation

0%

10%

20%

30%

40%

50%

60%

<=50 51-100 101-200 201-400 >400

Elec

tric

ity

savi

ng

(%)

Hotel size (# of Guestrooms)

Based on detailed audits completed for hotels in Barbados

Sample detailed audit recommendations

Energy Saving Opportunity Description

Initial Cost

($US)

Annual Cost

Savings ($US)

Payback Period

(years)

Annual Energy

Savings (kWh)

CO2 Saved

(Tons/yr)

Clean coils on fridges and freezers $ 960.00 $ 1,449.52 0.66 5,356 4.02

Turn off pool's Jacuzzi pump at night $ 100.00 $ 1,426.78 0.07 6,535 4.90

Install occupancy sensors in bathroom $ 14,400.00 $ 3,729.13 3.86 17,080 12.81

Properly insulate refrigerant-carrying copper

lines on 30 units $ 1,395.00 $ 469.65 2.97 1,847 1.39

Replace guest room Mini Split condensers with a

VRV system for cheaper cooling and free hot

water $177,300.00 $ 62,257.38 2.85 207,573 155.68

Replace Photocells with timers to save a half

hour of lighting power daily $ 500.00 $ 512.13 0.98 2,346 1.76

Retrofit Incandescent and Halogen bulbs to

CFL's and LED lights $ 18,415.00 $ 55,925.12 0.33 187,771 140.83

Install Variable Frequency drives on the pool

pumps $ 10,000.00 $ 6,955.54 1.44 31,858 23.89

Implement Corporate Utility Management

Program $ 12,000.00 $ 5,874.17 2.04 71,679 53.76

Install guest room controls $ 48,000.00 $ 15,602.80 3.08 56,993 42.74

Install an occupancy sensor in the Main

Restaurant $ 150.00 $ 573.77 0.26 2,628 1.97

Tint windows in guest rooms $ 22,100.00 $ 5,608.13 3.94 25,687 19.26

Replace 7.5 ton Packaged unit at Staff Quarters

with a VRV system producing hot water for staff

kitchen $ 12,000.00 $ 1,630.56 7.36 6,327 4.75

Sample energy audit findings

236 rooms, 23,673 m3 of serviced area

2009 occupancy = 54.4%

Energy use index = 127 kWh/GN, water = 1.87 m3/GN

Audit report recommended six (6) projects:

• Initial capital cost of US$ 1,358,465

• Total annual savings of US$ 589,592, 57% of total annual electrical

energy cost.

• Simple payback period = 2.3 years

• Internal Rate of Return - 37% over a seven year period

• Estimated 5 year savings = US$ 2,947,960

Value of detected water leaks equals US$470,000 per year

Impacts from hotel energy efficient savings

• Equivalent Barrels of oils saved in electricity generation:

• 49,200 Barrels per year

• Potential reduction of Greenhouse Gas emission:

• 28,600 CO2 tons per year

• Financial impact for the power utility (BLPC)

• US$ 8.2 Million reduced revenue per year as result of reduced

sales

• Fiscal impact for the government (without including grants)

• Reduction of US$ 3,7 Million per year in the annual imports –

exports deficit due to fewer oil imports.

Barbados hotel clean energy policy framework

The goal of the Barbados Hotel Clean Energy policy is to improve the

competitiveness and viability of the Barbados hotel sector through

increased energy efficiency and low carbon economic development.

Objectives:

• Reduce GHG emissions associated with hotel operations – reduction in CO2e

associated with reduced energy (electricity and gas) use – calculated based on the

difference from business as usual (without policy).

• Increase investment in cost-effective and proven energy efficiency and renewable

energy technologies – spending on green hotel design, efficient a/c, refrigeration,

water heating, appliances, lighting, solar hot water, PV. Data collected from

investment tax incentive filings.

• Improve the energy intensity of Barbados hotels (kWh per guest night) – reduced

kWhe per guest night for participating hotels – calculated from baseline (prior 24

months)

• Demonstrate and recognize the leadership of the hotel sector within Barbados (as

model for other sectors) and within the Caribbean (as a model for the tourism sector),

Expected impacts of clean energy policy

Growth in the Barbados clean energy industry (consultants, engineering

companies, equipment suppliers/distributors, service providers) – tax

revenue, employment

Reduced operating costs for Barbados hotels - expenditures on

electricity, gas and water

Improved balance of trade for Barbados through reduced imported

energy resources – expenditures on oil imports

Programmatic approach to reducing GHG emissions as a possible

example for other sectors in meeting national commitments

Greater awareness of and appreciation for energy efficiency and

renewable energy among hotel workers and the general public that can

be employed in their homes

Hotel clean energy policy scope

Physical plan for hotel development and associated infrastructure

Energy efficiency building codes for new hotels and

rehabilitations

Tax incentives for purchase of EE and RE products and services

Energy efficient labeling for hotel equipment

Hotel sustainability rating system (using EE and water use index)

Training programs for hotel management and staff

Utility feed-in tariffs for hotel RE installations

Financing for studies and investments in EE and RE

Barbados hotel clean energy policy framework

Barbados Tourism Master Plan (2012-2021) – environmentally-sound

sound tourism policies, strategies, projects and programs

Tourism Development Act (2002) – investment incentives

Barbados Sustainable Energy Policy Framework – energy

diversification, increased use of renewable energy and EE

Building Codes – guidelines for new commercial busines

Renewable Energy System Inter-Connection and Feed-in Tariffs with

Barbados Light and Power – pilot for < 50kW solar and wind

Energy Efficiency Retrofit and Renewable Energy Finance Facility

Hospitality Training – Hospitality Institute operates PomMarine Hotel

Sustainable Economic Development Policy - "Greening" the economy

GHG abatement under UNFCC National Communication

Energy efficiency value chain - traditional

Traditional approach

1. Best practices (no-cost measures)

2. Distribution (limited)

3. Procurement (locally available)

4. Installation (remove and replace)

Savings: 5-15%

Energy efficiency value chain - traditional

Proposed approach

1. Best practices (no-cost measures)

2. Studies (audits, feasibility studies)

3. Financing

4. Distribution (enhanced)

5. Procurement (EE rating)

6. Installation (trained, outsourced)

7. Operation and maintenance

8. Monitoring

9. Revenue from CERs

Savings: 35-50%

Integrated Value Chain Model - Carbon Trust

Near term advice on EE/RE technologies and loan

program to businesses to adopt “clean technologies”,

Long term venture capital support to emerging

technologies (or bringing together ventures that will

develop these technologies).

Carbon Trust accredits consultants (auditors) who

conduct “free” assessments.

This becomes the basis of the loan application. Carbon

Trust partners must meet the Carbon Trust Standard,

and can use their label in marketing.

Loan term = project payback period, $0 down, 0%

interest.

Questions and follow-up information

Thank you!!!

Caribbean Hotel Energy Efficiency Action (CHENACT)

Bill Meade - bill.meade@tetratech.com

Loreto Duffy Mayers – CHENACTProject@gmail.com