Alan Matthews, Director, Energy Partners
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Alan Matthews, Director, Energy Partners

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Financed Case: Refrigeration EE Financing

Financed Case: Refrigeration EE Financing

Alan Matthews, Chief Operating Officer, Energy Partners

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Alan Matthews, Director, Energy Partners Alan Matthews, Director, Energy Partners Presentation Transcript

  • CONFIDENTIAL |Financing EE with IDC fundingEnergy Partners© 2012 Energy Partners10 June 2013
  • CONFIDENTIAL |Who is Energy Partners?We support Business Owners to achievemaximum Energy Efficiency:- Establish the right strategic & operational objectivesto enable a holistic EE solution design- Facilitate the design & implementation of EEsolutions- Source the least expensive finance to mobilizethe implementation- Claim all incentives to further improve project ROI- Provide ongoing EE monitoring and control to ensuresavings are sustained and improved upon123542
  • CONFIDENTIAL |3LAW• 1 LLBFINANCE• 2 CA(SA)• 1 CFA• 1 B-Com(Accts)We believe in a holistic approach, enabled bya well rounded teamENGINEERING• 6 M. Eng•15 B.Eng• 2 ND(Elec, Electr, Mech,Chem, Civil)BUSINESS• 6 MBA• 1 MA (Econ)• 1 B.Bus Sc• 1B.Sc• 1 B.Com (Comm)MANAGEMENTCONSULTING• 21 years combinedexperienced (Bain &McKinsey)“Our services”OPTIMALENERGYSOLUTIONSRENEWABLESFINANCE &INCENTIVESEFFICIENCYMETERING &INTELLIGENCEPVSOLARWINDBIO MASSHVACREFRIGERATIONLIGHTINGTARIFF & BILLING“Our people”“Some of ourclients”~50 employees“Powered by results”
  • CONFIDENTIAL |4Our focus is largely on the Commercial andLight Industrial sectors4Source: DPE Draft Second National Energy Strategy ReviewNational Energy Consumption, by sectorSA CommercialSector• 8% of NationalEnergy Use, ~ 20%of Electricity Use• Multiple sub-sectors• Retail• Hospitality• Healthcare• Logistics• Average monthly bill~ R280k
  • CONFIDENTIAL |© 2012 Energy PartnersEnergy Efficiency is vital for many smallcommercial operationsFood retail example (illustrative)5Turnover- COGS (20%)Gross Profit- Salaries- Rent- Electricity- Other ExpensesOperating ProfitR5,000,000-R4,000,000R1,000,000-R380,000-R180,000-R160,000-R150,000R130,000Monthly Economics
  • CONFIDENTIAL |© 2012 Energy PartnersClient Example: “EP solution” reduced overallconsumption by 33% …6• 35% savings onmonthly bill• 3.4 yr combinedpaybackImpact1. Improved Behavior2. EfficientRefrigeration3. Efficient Lighting4. Power FactorCorrectionInterventions
  • CONFIDENTIAL |© 2012 Energy PartnersClient Example: IDC Funding meant client wascash flow positive from Day 1 (Net savings of R25K/month)…-60 000-40 000-20 000-20 00040 00060 00080 000100 000120 000Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10TotalSavingLoanrepaymentclientcashflowMonthly Project CashFlows, R
  • CONFIDENTIAL |020406080100%Cummulative savings (m kWhs)Project Return(1/Payback)Typicalcost ofCapitalOver the last 2yrs, we identified >200 projectswith combined savings of 52m kWh p.a.Total SavingsPotential = 52million kWh p.a.10 20 30 40 500
  • CONFIDENTIAL |020406080100%Cummulative savings (m kWhs)Project Return(1/Payback)However, client takeup of these opportunitieshas been slow10 20 30 40 500SoldNot Sold(Proposed,Declined,On hold)
  • CONFIDENTIAL |© 2012 Energy PartnersClients have several concerns10- “I don’t believe that savings can be achieved.”- “I am concerned that savings will not be maintainedafter implementation.”- “I do not have the funds available to do this.”- ”I have better investment opportunities – such asinvesting in income-generating assets.”1234
  • CONFIDENTIAL |© 2012 Energy PartnersStructuring the correct “package” for clientshelps to overcome concerns111234CONCERNSPRODUCTOFFERING•“I don’t believe that savingscan be achieved.” •EP guarantees savings•EP will provide financialcompensation if guaranteesnot achieved•“I am concerned that savingswill not be maintained afterimplementation.”•“I do not have the fundsavailable to do this.”•IDC provide the finance;Client requires no upfrontcapital•Savings are realised fromday one•”I have better/otherinvestment opportunities –such as investing in income-generating assets assets.”
  • CONFIDENTIAL |12How do we do this: Systems enable, but Peopledo Energy ManagementSTRATEGYINTELLIGENCEPROJECTSIMPLEMENTATIONMAINTENANCEFUNDING/INCENTIVESIn partnership with IDCPEOPLESYSTEMSV2
  • CONFIDENTIAL |13Working with the IDC has several advantages13• Attractive Rates• Prime -2%• Dedicated team with national coverage• Rapid decision making/turnaround• Clear criteria and requirements• Due diligence site team• Flexible• Documentation, draw down facility, paymentarrangements
  • CONFIDENTIAL |Thank youwww.energypartners.co.zaEnergy Partners Office:CT: 021-941-5140Alan Matthews: 084-529-6262Karel Cornelissen: 078-803-8417Derik Coetzer: 083-640-0910Please feel free to contact us with anyquestions14