1. Report on Project 64-2003 and Project 68-2003 EC-ASEAN Energy Facility Sponsored by the European Union through EC-ASEAN Energy Facility, EAEF By:Lee Siew Eang Centre for Total Building Performance National University of Singapore

2. Project 64-2003- Development of a Business Model for Building Energy Performance Services in the ASEAN region Project 68-2003- Development of a Comprehensive Database for Building Energy Performance Benchmarking in the ASEAN Region Project Partners: Centre for Total Building Performance National University of Singapore These Projects are Sponsored by the European Union through EC-ASEAN Energy Facility, EAEF Project Partners

3. EC-ASEAN Energy Facility EAEF Project 64-2003 Energy Audit Design and Engineering Financing Implementation Performance Verification Maintenance Contract Energy Performance Contract

4. EC-ASEAN Energy Facility EAEF Project 64-2003 Development of a Business Model for Building Energy Performance Services in the ASEAN Region. (Project No.64-2003) Energy retrofit represents the best investment in terms of ROI Owners would like to do it but lacking in Finance and know how ESCOs would like the business but lack market support and structure Financiers looking for opportunities but know nothing about EE retrofit The Motivations

5. Project 64: Owner Esco Financier Require confidence and best practice Standard Approach, Document, Accreditation Competence, Procurement and Financing approach Return on investment, Profit and risk sharing, Credibility Objectives of Project

6. EC-ASEAN Energy Facility EAEF Project 64-2003 Main Deliverables of Project Baseline Model for ASEAN Region Measurement and Verification Guideline Energy Performance Contracting Guideline Energy Performance Project Tender Documentation Energy Service Project Financing Technical Elements of PerformanceContracting

7. EC-ASEAN Energy Facility EAEF Project 64-2003

8. EUROCONTRACT:  10 agencies and institutes from 10 European countries as project partners.  The objective is to contribute substantially to the acceleration energy services market in Europe  Through promotion and development of Energy Performance Contracting.  It builds knowledge of market instruments for innovative energy services and furthers their implementation.  A central platform for exchanging and aggregating know-how is developed.  Tools available will be adapted in the participating countries.  Training multipliers and involving market actors is a key to the success,

9. EC-ASEAN Energy Facility EAEF Project 64-2003 Singapore: Current Status  EPC is in an early state of development.  There are few ESCOs offering comprehensive services.  Financial institutional supports are almost non-existence.  Procurement processes are not clearly established with proper Legal framework.  Facility owners are not familiar with EPC and reluctant to try.  Weak regulatory framework.

10. EC-ASEAN Energy Facility EAEF Project 64-2003 Singapore: Opportunities  Significantly over sized plants and equipment.  Both new and existing buildings are good targets.  HVAC and artificial lighting are two major areas for EPC.

11. EC-ASEAN Energy Facility EAEF Project 64-2003 Singapore: Programmes  Public sector EPC Programme for 8 buildings.  De-regulation of market.  S$10mil Energy Audit Assistance Scheme.  Reviewing of regulations and codes of Practice.  MND Green Building Grant, S$20 mil.  Accreditation of ESCOs.  Launched Energy Smart Building labeling programme.  Launched Singapore Certified Energy Manager programme.

12. EC-ASEAN Energy Facility EAEF Project 64-2003

13. Malaysia: Current Status  EPC is in an early state of development.  There are few local ESCOs with good experience.  Financial institutional supports are almost non-existence.  Programmes impeded by low energy tariff offering little incentive for EE to flourish.  Facility owners are not familiar with EPC and reluctant to try.  Weak regulatory framework.

14. EC-ASEAN Energy Facility EAEF Project 64-2003 Malaysia: Programmes  Use energy tariff as one of the incentives to meet growth objectives through foreign direct investment (FDI), and reduction of energy subsidies.  MIEEIP is a RM 80 million project co-funded by the GoM, UNDP, GEF and private companies. The objective is to remove barriers in the development of industrial energy efficiency. The goals are to reduce the energy consumption, energy intensities and green house gas emissions by 10 per cent using year 2000 as the base year.  ESCOs registration has been launched and ESCOs’ Association formed.  Launched Energy Manager training programme.

15. EC-ASEAN Energy Facility EAEF Project 64-2003 Based on the review of the existing M&V protocols Based on the review of the existing M&V protocols Relevant to the ASEAN region baseline model Relevant to the ASEAN region baseline model developed by project team. developed by project team. Incorporating local weather data and conditions Incorporating local weather data and conditions of ASEAN region. of ASEAN region. The Singapore Measurement and Verification The Singapore Measurement and Verification Guideline is being published as an independent Guideline is being published as an independent report. report. Singapore Measurement and Verification Guideline Project Output 1

16. EC-ASEAN Energy Facility EAEF Project 64-2003 Development of Baseline Models MethodsDescriptionOutput Statistical Methods  Single variant linear regression  Multiple variant linear regression  Easy to establish  Most commonly used Computer Simulation  DesignBuilder  Visual DOE  E-Quest  High accuracy  Not easy to use  Need detailed physical and system data Mathematics Methods  Neural Network  Support Vector Machines  High accuracy  Need large pool of data i.e. NN, SVM

17. EC-ASEAN Energy Facility EAEF Project 64-2003 Model Verification Input: Weather data of projected year Output: Projected year’s energy use Accuracy assessment: CV,PI, VAR, MAE Data Collection: min. three years of actual data with detailed breakdown

18. EC-ASEAN Energy Facility EAEF Project 64-2003 This guide is prepared for both the energy services procurers and the ESCOs It benefits the following target groups: Building owners; Financiers; ESCOs; Public agencies accrediting ESCOs. EPC and its role in the ASEAN region was defined. EPC procurement process, including the preliminary stages required for a successful EPC was discussed. The selection process for a suitable EPC that complements the contracting parties’ capabilities and constraints was presented. The ASEAN Region Energy Performance Contracting Guidebook Project Output 2

19. EC-ASEAN Energy Facility EAEF Project 64-2003 The pre-qualification procedure and suggested possible evaluation criteria was discussed. The issues to consider in selecting an appropriate ESCO as the final contracting candidate were also suggested. Documentation includes the request for proposals, pre-proposal and site visits, and non-disclosure agreements. The tender evaluation procedure and the Detailed Facility Study (DFS) that would be undertaken by the selected ESCO were discussed. Finally, the contract administration issues such as monitoring and managing an EPC and the general risk matters that present. The ASEAN Region Energy Performance Contracting Guidebook Project Output 2 (contd.)

20. EC-ASEAN Energy Facility EAEF Project 64-2003 Project Output 3 The energy performance project standard contract provides an easy tool to building owner and ESCOs on the energy performance project. This standard contract form was developed based on a wide review of many other countries standard contract and consider the local industry situations. It provides the template for 4 types of energy performance contracting including guaranteed savings with upgrades financed by client/energy service company, paid from savings, shard savings and design and build. The Energy Project Tender Documentation is a set of the necessary tender document templates. It helps building owners and ESCOs to process the energy performance project tender easily. ASEAN Region Energy Performance Project Standard Contract and Energy Performance Project Tender Template

21. EC-ASEAN Energy Facility EAEF Project 64-2003

23. Conclusions 4.The projects have been a great success. The project team, including all the Partners would like to acknowledge the sponsorship made available through the EU-ASEAN Energy Facility. 5.The project Team would also like to acknowledge the excellent support given by the PMU and ACE as a whole. 1.We believe the project has laid the ground work for the development of Energy Performance Contracting in ASEAN. 2.While the knowledge infra-structure is being further developed. It is important to close the business gaps through demonstration to allow the industry to gain confidence. 3.Regulatory framework should be strengthened to make energy efficiency development economically viable, and further develop capacity through cooperation.

24. EC-ASEAN Energy Facility EAEF Project 64-2003 Extension of Collaborations 1.Through the project we have developed excellent relationships among the EU and ASEAN Partners. They have in turn brought in other associates in the EU. 2.In addition to my Partners, INIVE, IEN and PTM, I would like to acknowledge the contributions made by CSTB of France, Berlin Energy Agency, Athens University, Denmark Technical University, the Danish Electricity Saving Trust, and many others. 3.On 5 th November NUS has signed an MOU with the Technical University of Denmark to work on Green and Energy Efficient Building. 4.We are developing new projects on cool materials and energy benchmarking with University of Athens, a partner of the project..

25. EC-ASEAN Energy Facility EAEF Project 64-2003 5.We are working closely now with INIVE and IEA to develop indoor environment and ventilation studies through AIVC. 6.We are working towards a MOU with the Danish Electricity Saving Trust to undertake project on On-line Energy Benchmarking. Extension of Collaborations 7.My Centre has also been invited to participate in the discussions and development of the EU’s Energy Performance Building Directive (EPBD) in Brussels.

26. Thank you Lee Siew Eang Head, Energy Sustainability Unit School of Design and Environment National University of Singapore bdgleese@nus.edu.sg For further information And benchmarking, visit - www.esu.com.sg EC-ASEAN Energy Facility EAEF Project 64-2003