Russell Brown, Chief Executive Officer, Ruach Renewable Energy

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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.

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Russell Brown, Chief Executive Officer, Ruach Renewable Energy

  1. 1. Energy for LifeEnergy efficiency for service stationsMay 2013Sustainable Efficiency…….through Objective Design
  2. 2. Energy for LifeAgenda– Why the focus on energy efficiency?– International best practise– Methodology– Key elements of Energy Management– Energy Auditing– Energy efficiency interventions– Incentives, Financing & Funding
  3. 3. Energy for LifeWhy 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
  4. 4. Energy for LifeWhy efficiency – SA back drop ?– Immediate considerations:– Escalating energy prices threatening sustainability– Building Management – improve efficiency  savemoney– 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
  5. 5. Energy for LifeWhy 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
  6. 6. Energy for LifeInternational Best Practise
  7. 7. Energy for LifeSustainable Design methodology- First Reduce Demand –change procedure / behaviourand pro-actively manageDemand- then look for Efficiency –implement relevant technologiese.g. Voltage Optimisation or PCPower Management- then look to Innovate –generate Power on site– Solar PV or Wind
  8. 8. Energy for LifeKey elements of Energy Management– Measurement and Management– Behavioural and Procedural change– Technology interventions
  9. 9. Energy for LifeMeasurement and Management“If you can’t measure it youcan’t manage it”. PeterDrucker
  10. 10. Energy for LifeMeasurement 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?
  11. 11. Energy for LifeWhat am I using? - Benchmark analysis– Know yourbenchmark– When am Ipeaking (kVa)?– Revise withtargets– Control energyusage against thebenchmark
  12. 12. Energy for LifeAm I charged correctly? - Bill verification– What am Iconsuming?– kWh– kVA– What rate am Ibeing charged?– Am I beingbilledcorrectly?
  13. 13. Energy for LifeAm I on the right tariff? - Tariff Analysis– Measureusagepatterns– Evaluateavailabletariffs
  14. 14. Energy for LifeHow effective is my saving plan?– Key areas– Behaviour and procedure change? –measure the effectiveness of the changes.– Technology changes – measure thevendor solutions for promised savings,paybacks and ROI.
  15. 15. Energy for LifeCost to measure?– On line Metering and switching– Measure 24 & control 8 points– R4500 Capital outlay– R250 per month
  16. 16. Energy for LifeKey elements of Energy Management– Measurement and Management– Behavioural and Procedural change– Technology interventions
  17. 17. Energy for LifeBehavioural and Procedural change₋ Observe:₋ Opening Procedure₋ Daily Behaviour₋ Closing Procedure₋ Identify Opportunities₋ Implement Changes
  18. 18. Energy for LifeBehaviour 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 & postercampaign)₋ Strong management (guide & checklist)₋ Pro-active daily measurement and alerting(metering)₋ Staff incentivisation₋
  19. 19. Energy for LifeB&P Pocket guide
  20. 20. Energy for LifeB&P Pocket guide
  21. 21. Energy for LifeB&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 22.00HOT 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 17.45Switch OFF at 22.00
  22. 22. Energy for LifeB&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
  23. 23. Energy for LifeEnergy Auditing– Approach– Steps in the audit process– Establish and question the benchmark– Understand the contributors– Question design assumptions
  24. 24. Energy for LifeAuditing approach₋ Once off or on-going?₋ Once off snap shot₋ Understand contributors₋ Prioritise solution focus₋ On going₋ Main incomer₋ Key circuit management
  25. 25. Energy for LifeSteps 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
  26. 26. Energy for LifeDetailed audit steps– Behavioural and Procedural assessment– Occupancy– Light levels– Equipment inventory– Contributor measurement and analysis– Demand peak management
  27. 27. Energy for LifeContributor 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
  28. 28. Energy for LifeService station Load profile (Site 1)
  29. 29. Energy for LifeService station Load profile (Site 2)
  30. 30. Energy for LifeSub-site contributors
  31. 31. Energy for LifeEquipment profileAnvil Toaster and rotisserie
  32. 32. Energy for LifeWimpy Load Profile
  33. 33. Energy for LifeSteers Load Profile
  34. 34. Energy for LifePeak Demand measurement & analysis– Measure individual circuits as contribute todemand (kVa)– Understand the impact of circuits on demand– Enable– pro-active demand management– reduced demand costs
  35. 35. Energy for LifePeak demand targeting
  36. 36. Energy for LifeEnergy 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
  37. 37. Energy for LifeTypes 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
  38. 38. Energy for LifeAudit 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
  39. 39. Energy for LifeEnergy efficiency interventions– What’s the bottom line?Area Savings Payback (years)Lighting 70-80% 1 - 1.5AC 30-80% 1 - 3Refrigeration 15-40% 1 – 3Food prep 15-40% 1 – 2Switching range < 1VPO 15-20% 2 - 3
  40. 40. Energy for LifeFunding– 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
  41. 41. Energy for LifeEskom 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 50kWqualification– Register SOP per group of dealers up to 5mW saving
  42. 42. Energy for LifeIDC 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
  43. 43. Energy for LifeDEA/DBSA Green Fund–R800M fund–Low carbon economy ”window” for energy efficiency–2 RFP processes to date
  44. 44. Energy for LifeSA 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 andEskom SOP payment- Bullet payment
  45. 45. Energy for LifeUSA based funding– 2 USA agencies– OPIC– EXIM– Specialist Energy efficiency and RET funding for emergingmarkets– USA technology supply and support on projects– Terms– 85-100% of project value– 10-18 years loans– 2 to 3% fixed interest rate
  46. 46. CONTACT DETAILSRussell Brown082 444 8187www.rresa.comrussell@rresa.comAny questions ?

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