OPPORTUNITIES FOR BUSINESSES TO DIRECTLY IMPROVE THE BOTTOM LINE THROUGH ENERGY EFFICIENCY 3 rd May 2010 Kees Brinkman Managing Director

1/24 INTRODUCTION Kees Brinkman: ­Managing Director ­Mechanical Engineer working in the energy field for 20+ years ­EMANZ Accredited Energy Auditor Enercon is an Energy and Utility Consultancy ­Based in Christchurch ­Six staff, all degreed engineers

2/24 DURING THIS PRESENTATION… 1. Why focus on reducing energy and carbon emissions? 2. Energy Management 3. Potential benefits of an Energy Audit ­What are the potential savings? ­Our experience with commercial and industrial clients

3/24 1.Why Focus on Energy and Carbon Emissions?

4/24 REASONS TO FOCUS ON ENERGY? The economics are attractive! ­Energy prices are increasing all the time ­Any reduction in energy cost directly impacts on the bottom line Once an Energy Audit is implemented, the cost of the audit is typically paid back in less than 100 days!

5/24 INCREASING ENERGY PRICES

6/24 REDUCING CARBON EMMISSIONS Reasons to reduce carbon emissions: ­Emissions Trading Scheme leads to increased costs ­Combats global warming Ways to significantly reduce carbon emissions: ­Improve energy efficiency (most common and economically attractive) ­Switch to renewable fuels / suppliers

7/24 ENERGY MANAGEMENT SERVICES AVALIABLE TO IMPROVE THE BOTTOM LINE Main Services ­Scoping and Feasibility Studies ­Energy Audits ­Tariff Analysis and Tendering ­Monitoring and Targeting Systems

8/24 FURTHERMORE… Additional Services ­Greenhouse Gas Assessments ­Fuel Switching Feasibility Studies ­Ongoing Energy Management ­Audit Implementation and Project Management ­Concept Design Reviews ­Demand Side Management Analysis ­Cogeneration System Analysis

9/24 3.Energy Management

10/24 WHERE TO START… Energy Audit Scoping Study ­Review the consumption of all sites and operations ­Benchmark the figures to determine the most efficient path ­Identify sites in need of Level 2 Energy Audit

11/24 LEVEL 2 ENERGY AUDIT – PROCESS 1. Energy Use Analysis ­Calculate historic energy use and review bills ­Determine where/when energy is consumed ­Find target areas for energy reduction

12/24 LEVEL 2 ENERGY AUDIT – PROCESS 2.Site Visit ­Kick-off meeting ­Day-time inspections, including metering where appropriate ­Afterhours inspections ­Closure meeting

13/24 LEVEL 2 ENERGY AUDIT – PROCESS 3. Technical Analysis ­Perform an energy split to determine where energy is used ­Calculate savings from Energy Management Opportunities ­Contact contractors to obtain capital costs

14/24 LEVEL 2 ENERGY AUDIT – PROCESS 4.Draft report ­Client has opportunity to review 5. Review Meeting 6. Final Report

15/24 THE NEXT STEP… Monitoring and Targeting ­Monthly review energy consumption and bills for each site ­Compare consumption and cost against predicted ­Make recommendations towards changes needed Perform Tariff Reviews ­Ensure the most cost effective tariff is utilised

16/24 4.Potential Benefits…

17/24 ENERGY AUDIT POTENTIAL SAVINGS… Opportunities; less than one year payback ­Typically 2 – 10% energy savings Opportunities; between one and three year payback ­Typically 2 – 10+% energy savings Opportunities; greater than three years ­Depends on the process ­Are still investigated despite the long payback ­May have production advantages

18/24 CASE STUDY – Large MDF Plant Total Identified Savings ­$1.4 million energy savings annually ­0.5 year average simple payback ­Reduced annual carbon emissions of 2,000 tonnes (11%)

19/24 CASE STUDY – Office Building Total Identified Savings ­13.2% energy savings annually ­2.8 year average simple payback Major Opportunities Found ­Improve AHU control and lighting efficiency

20/24 CASE STUDY – Canterbury Museum Kelvin Nolly ­Could not be here today Total Identified Savings ­$79,000 energy savings annually (36.9%) ­$2,500 implementation cost

21/24 CASE STUDY – Canterbury Museum Opportunities ­Optimising the electricity demand controls on the BMS ­Reducing fresh air being supplied to spaces when not required ­Switching off plant at night ­Fixing the humidity controls for AHU9

22/24 CASE STUDY – Canterbury Museum Daily Load Profile 1. Under floor heating 2. Office loads 3. Space heating 4. Base load 5. Day lighting

23/24 CASE STUDY – Canterbury Museum Optimising BMS electricity demand controls ­Saved $34,000 ­BMS load shed HVAC systems to avoid Control Period demand charges ­Another program was installed to avoid spot prices which conflicted causing large Network Charges ­Solved by prioritising programs or avoiding spot market

24/24 Any Questions???