Russell Brown, Chief Executive Officer, Ruach Renewable Energy
46
Energy for Life Energy efficiency for service stations May 2013 Sustainable Efficiency …….through Objective Design
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With the expected Eskom increases over the next five years, retail petroleum service stations are facing reduced profitability and some even closure as profits are continually eroded by rising operating costs. Electricity is one of the costs that can be managed and self generated. This conference aims to examine best practices in energy efficiency and unpack the options and complexities of generating electricity from renewable energy specifically for retail fuel sites.
Transcript of Russell Brown, Chief Executive Officer, Ruach Renewable Energy
Energy for Life
Energy efficiency for service stationsMay 2013
Sustainable Efficiency…….through Objective Design
Energy for Life
Agenda
– Why the focus on energy efficiency?– International best practise– Methodology– Key elements of Energy Management– Energy Auditing– Energy efficiency interventions– Incentives, Financing & Funding
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Why efficiency – Landlord / Tenant?
– Oil company or Landlord – Building Value– Increased Rental potential– Enhanced rental model
– Dealer (Tenant)– Energy risk – escalating electricity prices – Long-term Profitability and Sustainability– Financing of efficiency interventions
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Why efficiency – SA back drop ?
– Immediate considerations: – Escalating energy prices threatening sustainability– Building Management – improve efficiency save
money– 10400XA – a requirement for refurb or new build– Property Investment - Valuations – key for future– Generator efficiency – how often is it used?– Incentives
– Eskom SOP– Green funding
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Why efficiency – SA back drop ?
– Up coming considerations– Carbon Tax 2015
– R120 per Ton of CO2– Example: CO2 for a Small SS 21T @ cost R2520
– Energy efficiency Tax Incentives – National Energy Act 2008 - 34– Income Tax Act 1962 - 12L– Proposed R0.45 c/kWh saved– Apply by 2015
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International Best Practise
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Sustainable Design methodology
- First Reduce Demand – change procedure / behaviour and pro-actively manage
Demand - then look for Efficiency –
implement relevant technologies e.g. Voltage Optimisation or PC Power Management
- then look to Innovate – generate Power on site
– Solar PV or Wind
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Key elements of Energy Management
– Measurement and Management– Behavioural and Procedural change– Technology interventions
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Measurement and Management
“If you can’t measure it you can’t manage it”. Peter
Drucker
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Measurement and Management
– Key issues– What am I using currently? – Am I charged correctly? – Am I on the right tariff?– How effective is my savings plan?
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What am I using? - Benchmark analysis
– Know your benchmark
– When am I peaking (kVa)?
– Revise with targets
– Control energy usage against the benchmark
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Am I charged correctly? - Bill verification
– What am I consuming?– kWh– kVA
– What rate am I being charged?
– Am I being billed correctly?
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Am I on the right tariff? - Tariff Analysis
– Measure usage patterns
– Evaluate available tariffs
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How effective is my saving plan?
– Key areas– Behaviour and procedure change? –
measure the effectiveness of the changes.– Technology changes – measure the
vendor solutions for promised savings, paybacks and ROI.
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Cost to measure?
– On line Metering and switching– Measure 24 & control 8 points– R4500 Capital outlay – R250 per month
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Key elements of Energy Management
– Measurement and Management– Behavioural and Procedural change– Technology interventions
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Behavioural and Procedural change
₋ Observe: ₋ Opening Procedure₋ Daily Behaviour ₋ Closing Procedure
₋ Identify Opportunities₋ Implement Changes
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Behaviour and Procedure change
₋ 20-30% savings achievable ₋ Low cost non tech solution₋ Keys to success
₋ Training ( pocket guide and labels)₋ On going awareness (equipment labels & poster
campaign)₋ Strong management (guide & checklist)₋ Pro-active daily measurement and alerting
(metering) ₋ Staff incentivisation
₋
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B&P Pocket guide
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B&P Pocket guide
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B&P Equipment labelsBAINE MARIEFill with hot water from the hydro boilSwitch onto 2 at 10.00Switch onto FULL at 11.45Switch OFF at 14.00Switch onto FULL at 17.30Switch OFF at 22.00
HOT PASSIf seating area is quiet switch off all or use only one levelWhen busy use all of one warmer before switching on anotherSwitch ON at 11.45amSwitch OFF at 14.00Switch ON at 17.45
Switch OFF at 22.00
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B&P costs
– Small site R5605– Audit R 1500– Training R 3000– Campaign material R 1105
– Medium site R6194– Audit R 1750– Training R 3000– Campaign material R 1444
– Large site R6742– Audit R 2000– Training R 3000– Campaign material R 1742
– 4-6 months payback
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Energy Auditing
– Approach– Steps in the audit process
– Establish and question the benchmark– Understand the contributors– Question design assumptions
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Auditing approach
₋ Once off or on-going?₋ Once off snap shot
₋ Understand contributors₋ Prioritise solution focus
₋ On going₋ Main incomer₋ Key circuit management
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Steps in the Process
- Detailed Audit- Establish Baseline demand- Question and Analyse the Baseline demand - Determine the Contributors - Confirm Focus areas- Identify High level solutions
- Post audit:- Prioritise, Design and Implement interventions- Implement process/behaviour change
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Detailed audit steps
– Behavioural and Procedural assessment– Occupancy– Light levels– Equipment inventory– Contributor measurement and analysis– Demand peak management
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Contributor measurement & analysis
– Measure individual circuits– Understand the impact of circuits on overall– Understand equipment impacting Peak (kVA)– Enable
– educated approach to Capex spend– accurate payback analysis
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Service station Load profile (Site 1)
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Service station Load profile (Site 2)
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Sub-site contributors
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Equipment profileAnvil Toaster and rotisserie
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Wimpy Load Profile
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Steers Load Profile
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Peak Demand measurement & analysis
– Measure individual circuits as contribute to demand (kVa)
– Understand the impact of circuits on demand– Enable
– pro-active demand management– reduced demand costs
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Peak demand targeting
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Energy efficiency interventions
– Lifecycle costing approach– Maintenance costs – Energy savings– Equipment life– Eskom incentives
– Give and take– landlord/lessee & dealer
– win-win approach– sustainability of dealer
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Types of audits
– B&P– Walk through
– Equipment inventories– B&P– Contributor analysis– High level energy plan
– Detailed audit– Equipment inventories– B&P– Contributor analysis– Conceptual design– Detailed energy plan
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Audit Costs
– Walk through– Large site (restaurant) R9750– Medium site (take way) R9150– Small site (shop only) R8400
– Detailed audit– Large site R22000– Medium site R20000– Small site R18500
– Payback – Savings through B&P – Right decisions on where to spend
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Energy efficiency interventions
– What’s the bottom line?
Area Savings Payback (years)
Lighting 70-80% 1 - 1.5
AC 30-80% 1 - 3
Refrigeration 15-40% 1 – 3
Food prep 15-40% 1 – 2
Switching range < 1
VPO 15-20% 2 - 3
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Funding
– Fund projects out of savings – zero opex impact – Mechanisms
– Eskom SOP incentive– Energy efficiency and renewable energy funding– IDC green energy efficiency fund– DEA green fund– SA Commercial - Merchant West– USA based funding
– Tax incentives
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Eskom SOP
– Key project facilitator– 50 kW saving entry point– 30-80% plus Capital incentive– Lighting first
– 20-30 % of sites load– most used and structured SOP– easiest to roll out across all sites
– How to access– Group dealer councils into projects to achieve the 50kW
qualification– Register SOP per group of dealers up to 5mW saving
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IDC Green Energy Efficiency fund
- Supports introduction of- Energy efficiency- Renewable energy
- Loans- R1M to R50M- At prime- 15 year term
- Work in tandem with Eskom SOP- Fund Capex for SOP projects- Bridging finance
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DEA/DBSA Green Fund
–R800M fund –Low carbon economy ”window” for energy efficiency–2 RFP processes to date
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SA Commercial - Merchant West
- Asset finance for Energy efficiency or RET projects- Structure to suit
- Instalment sale, Operating lease or Financial lease- Monthly or quarterly payments
- Bridging finance - Bridge the gap between project implementation and
Eskom SOP payment- Bullet payment
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USA based funding
– 2 USA agencies– OPIC– EXIM
– Specialist Energy efficiency and RET funding for emerging markets
– USA technology supply and support on projects– Terms
– 85-100% of project value– 10-18 years loans– 2 to 3% fixed interest rate
