Personal IntroductionCompany IntroductionAim to provide: energy savings reduce carbon emissions improve security of supply through decentralised generation and energy efficiency measures within an energy performance contract. Will explain how we offer this during the presentation.OverviewEnergy Objectives, how an ESCO operates and ESCO contractsESCO Solutions for CHP with a Self Energy case study
Organisations need to control their energy consumption and expenditure for above reasons.
ESCOs enable projects to progress that would otherwise not happen.
Energy efficiency can be achieved through implementing better technologies.Also, by changing occupants’ behaviour, once the true baseline energy services required are realised, then the optimum method of providing the energy for the end-uses can be determined.
ESCO contracts can be supply or performance based.
The energy performance contract is negotiated with the client so that both parties are satisfied. The terms of the contract will specify both financial and energy performance targets.
Self Energy performed a feasibility study for a large hotel. We determined a 512kW CHP unit to be a good solution to reduce their energy costs and reduce CO2 emissions.We formulated various proposals for the amount of equity Self Energy would provide.
The hotel had an energy bill of 1.3m. Investment required = 757k.The first solution was for the hotel to provide just 30k.
Gross savings and CO2 savings as shown.
The hotel makes savings as shown with payback of 2.7 years.
Alternative solution is the hotel investing 151k.
Same savings in energy and CO2 but hotel sees larger share.
Better overall financial savings for hotel but slightly longer payback period.
CHP Group Seminar - Paul Lewis - 28 June 2010
ESCO Solutions<br />Paul Lewis<br />CEO<br />Self Energy<br />Southbank Technopark<br />90 London Road<br />London SE1 6LN<br />+44 (0) 208 1444 348<br />CHP Group Seminar: 28 June 2010<br />www.selfenergy.co.uk<br />UK<br />
Energy Objectives<br />UK<br />Control and Reduce Energy CostsReduce exposure to external energy price volatility and reduce the cost of energy required to conduct business activities<br />Ensure Security of Power SupplyQuality, autonomy and security of consistent power<br />Retain Capital for Core Business ActivitiesA barrier to implementing energy saving technologies is the capital cost – this will prevent viable, economic projects being initiated<br />Carbon ReductionIncreasing legislation to reduce carbon emissions and pressure from customers, investors, management and staff to make changes in order to reduce carbon emissions<br />
The concept of an ESCO<br />UK<br />Overcome key barriers to implementation of decentralised energy (including CHP)<br /><ul><li> Project / performance risk appetite
Operation and maintenance expertise and capability</li></ul>Identification, feasibility and design of energy conservation measures<br />1. Energy efficiency <br />2. Cogeneration (CHP)<br />3. On-site renewable energy<br />
ESCO Contracts<br />UK<br />Energy Supply Contract – <br />Supply of heat, power, cooling through a negotiated tariff<br /><ul><li> ESCO paid through supply of energy service
ESCO incentivised to deliver energy service</li></ul>Energy Performance Contract – <br />Guarantee particular level of service provision <br />(DHW, space heating, lighting, cooling, power etc)<br />Guarantee a measure of energy saving on existing levels<br /><ul><li> ESCO paid for through energy savings
Suited for retrofit</li></li></ul><li>Energy Performance Contract<br />UK<br />Client<br />Client<br />Total Energy savings<br />Total Energy <br />consumption<br />During partnership<br />with ESCO<br />After<br />Before<br />Fixed term contract<br />Savings shared during the contract<br />Total customer benefit at the end of the contract<br />
Case Study: ESCO Solutions<br />UK<br />Example: 510kW CHP with Energy Efficiency measures<br />
Case Study: ESCO Solution A<br />UK<br />Example: 510kW CHP with energy efficiency measures<br />Total investment requirement: £757k<br /><ul><li>ESCO investment: £233k