This document discusses the transition from a 'use more' to a 'use less' philosophy in energy consumption, emphasizing the importance of energy efficiency and sustainability. It highlights case studies demonstrating potential savings and the benefits of proper energy management and auditing. The paper advocates for the integration of energy service companies (ESCOs) to facilitate this shift toward a low carbon economy, ultimately promoting profitability through energy conservation measures.

1. When Does “Use Less” Become a Business? - Introduction to Energy Saving Business Eric Huang Director of BD & MKT, Trane, Ingersoll Rand

2. “ Use More” is in our gene “ Having is good, More is better,”

3. “ Use More” is in our gene. More Convenience, More Comfort, More Consumption. We are pursuing, “ More Useful, Use More”

4. Everything is From Something Else. God said, “let there be light, there was light” People can only make things from things

5. Everything is From Something Else Resource, Refine, Rebuild, Remarkable

6. Everything is From Something Else We also make things invisible, yet still useful. Energy

7. Everything is From Something Else 1752, B. Franklin & his kite. 1879, T.A. Edison & his light bulb.

8. Everything is From Something Else

9. Feisal is coming to town Energy was there forever, we thought, until 1973, the oil crisis. US was 1 st largest oil production country before 1930, then gave place to the Middle East countries.

10. No More Cheap Energy When? Where!

11. No More Cheap Energy BP, Biological Punk!

12. Still “Use-More” better? TRY USE LESS NOW

13. Use-less is more useful Low Carbon Economy Carbon footprint, PAS 2050 Global Warming Gases Management, ISO-14064 Energy Management, ISO-50001 Carbon trade, CDM/JI/ETS Sustainable Economy Green Label Energy Saving Business Renewable Energy Alternative Energy 老子

14. Where to Save? 20% 60%

15. 30% up in Profit? Right HVAC solution may easily increase profit by 30%

16. Internal Return Rate Annual Cash Flow: 0, IRR - ∞ Annual Cash Flow: 10k, IRR 0% Annual Cash Flow: 15k, IRR 8% Annual Cash Flow: 20k, IRR 15%

17. Cases Study 8 inch foundry factory *2 Investment USD 2.8.M Saving 12% CO 2 deduction ： 22,360 ton/yr Energy Saved ： USD 1.5M/yr Energy Saved : 33.88M kw-hr/yr Cash contribution : USD 1.5 M/yr UMC 聯華電子廠務暨擴建工程部，倪敏鷗副總經理： 「冰水系統 COP 節能系統自 2006 年上線累計至 12 月底，共節電 16,939,400 度，電費約節省 2,700 萬，如以此推估，每年可節省 4400 萬，本案所支付工程費，不到兩年就可回收。」（ 2007/3/21 經濟日報） 45.6% Internal Return Rate

18. Cases Study 34% YM Marine 23% AUO 70% Ren-ai Hospital 23% Chi-Mei Hospital

19. Energy Saving, Biz about Use-Less Rule of Larger Number 20% 60%

20. Centric Air Conditioning Chiller Cooling Tower Fan Coil Indoor Environment Outdoor Environment

21. Energy Saving Approaches Usually we don’t mess around with process.

22. Rules of thumb here Do not sacrify the degree of comfort, consequence can be severe. Do not buy in owners’ ideas 100%. They always exaggerate feelings , and ignore common sense. Do not try to measure everything, unless budget and time is infinite. Do not play smart. Leave the crazy ideas in lab. Do not ignore hidden agenda, e.g. Finance, competitors, etc. Things to follow: Thermodynamic laws Construction laws

23. Short break here. Iron man like I am, still need fuel as well

24. Energy Saving Approaches Usually we don’t mess around with process.

25. System perspective System is a general description for the combination of known and unknown. We know, The list of equipments The result The owner We don’t know, How do these equipments work? Who actually operates these stuff? Where are the leaks? What are the agenda hidden behind? Energy Auditing Measurement Sound plan & goal Proj mgmt expert Acceptable Trade off

26. System perspective>Mgmt How are the expectations? Environment requirement? Cost saving? Easy Management? Curtsy to legacy? Production/business risk free? Sometimes, we just have to teach them how to do business. Instructions, operation Manual, SOP, etc. Fine tuned automatic control system. Discretionary Account Operation. Infinite patience.

27. System perspective>Mgmt What happened in Dell The conversation was between Dell CS specialist and an angry lady. Dell: What Can I do for you, Madam? Lady: Your design is good, I like it. But the product quality is very bad! I hope you can improve it. Dell: It’s always our pleasure to support our customers. May I know what happened? Lady: Good! Explain me why the cup holder in front of my PC just can’t stay longer than 2 weeks?

28. System perspective>Control Control is more complicated than switching on & off. The devil is in the gray area. - = Once you don’t play by the rule, the water will flood you.

29. System perspective>Control To provide controllability over the system components and monitor its performance instantly. Advanced control system may provide real-time operation status and best saving strategy: Building Energy Mgmt System(BEMS)

30. System perspective> Layout & Piping Piping is more than plumbing, but to reduce the resistance from fluid dynamics perspective, to find an optimized path, and to apply energy saving strategies (low flow, high temp difference, secondary flow method, etc)

31. Unit perspective> Chiller Energy Saving Strategy: Chiller: AFD (Adjustable Frequency Driver) Flow/Temp control to improve cooling capacity Management: N+1 strategy, CTO (Cooling Tower Optimization) Refrigerant Keywords: COP kilowatt/ton Compressor Vaporizer Ice water Cooling water

32. Unit perspective > Heat Recovery (Heat Pump) What really matter is not the CO2, but the heat. It is projected and pretended unseen. With heat recovery units, we can turn the waste heat into excellent heat source.

33. System as an entity Heart Vein Brain Soul Sport Liver Organ Health

34. Overview Baseline (assumption) Saving/ ROI Potential (estimation) How to define the saving? Baseline

35. What is the base of Baseline? How high is the Mountain Everest? 8,848m from the sea level. How can you be so sure it is 8,840 all the time? Would it vary with internal/external factors? Scientists set the “average ocean height” as the zero point of the attitude. Then, all the geographic phenomenon can be measured based on the same reference. In term of energy, baseline is the general concept to describe the accumulated energy consumption of a group of energy consuming units (ECU, or boundary), while no significant impact to the ECU matrix. The source of impacts: environment, production, operation, management, & the change of the matrix.

36. What is the base of Baseline? Measurable factors Energy efficiency/consumption per unit/system. Temperature, working hour, operation behavior. Demand and Design. And 100+. (chiller alone has more than 20 factors) Decisive factors in real case. Budget (3%~5% of total investment) Time (1~3 months) Cost (tool, man-day, interests, contract limitation, etc) Face the limitation, so one can find way to overcome.

37. Type of energy audit For ESCO, energy audit is to, Find out the general status quo of energy consumption Discover the potential opportunities Define the likely boundary of energy project. Types of energy audit Preliminary auditing (walk through) General auditing, to decide the energy structure Investment auditing, considering ROI all together.

38. Auditing as part of the business ! ! 50001 50001 Done!

39. Measurement & Verification ECM: Energy Conservation Measure IPMVP M&V options OPTION A Retrofit Isolation: Key Parameter Measurement Engineering calculation of baseline and reporting period energy from,1. short-term or Continuous measurements of key operating parameter(s); and 2. estimated values. OPTION B Retrofit Isolation: All Parameter Measurement Short-term or continuous measurements of baseline and reporting-period energy, and/or engineering computations using measurements of proxies of energy use. Routine and non-routine adjustments as required. OPTION C Whole Facility Analysis of whole facility baseline and reporting period (utility) meter data. Routine adjustments as required, using techniques such as simple comparison or regression analysis. Non-routine adjustments as required. OPTION D Calibrated Simulation Energy use simulation, calibrated with hourly or monthly utility billing data. (Energy end use metering may be used to help refine input data.)

41. Our suggestions Integration Internal Cost

42. What is ESCO? Cut budget Cut Cost Profit Cost Common Interests Vender as Investor Performance Guarantee Pay by Saving Level of Confidence

43. Use-Less as a Business Energy Service Companies (ESCO) The company provides Energy Services. The business model to provide energy services. Keywords Pay by saving Performance guarantee Energy Cost Energy Cost Benefit Sharing Energy Cost

44. Identify the opportunities, and partner

45. Energy to Emission

46. Roadmap to the greened world Plan Do Plan Check Do Action Plan Check Do Action

48. Conclusion When all are suffered, we can be their saver, and make fortune at the same time. Measurement and Verification must be abided by certain protocol, and generate visible results (KPI). Energy saving is almost equal to Carbon Reduction, that is another golden magic word. Take actions now, and convince your clients to be “USE-LESS”. Then, the prince and princess live happily forever.