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Energy Performance Contracting Energy efficiency improvements in commercial buildings - opportunities and challenges in New Zealand.

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Presentation on theme: "Energy Performance Contracting Energy efficiency improvements in commercial buildings - opportunities and challenges in New Zealand."— Presentation transcript:

1 Energy Performance Contracting Energy efficiency improvements in commercial buildings - opportunities and challenges in New Zealand

2 Energy Performance Contracting Energy Performance Contracting (EPC) is a method of implementing energy efficiency improvements projects based on guaranteed savings Capital outlay is recovered from energy savings during time of contract Any shortfall of predicted savings is made up by the contractor Types of EPC: shared savings or guaranteed savings contract

3 EPC in New Zealand EPC has first appeared in New Zealand about 20 years ago Shaky start Australasian Energy Performance Contracting Association in 1998 Current EPC - Honeywell NZ with government support

4 Commercial Buildings in NZ Commercial and industrial buildings account for 8% of total New Zealand energy use Centre of Advanced Engineering in University of Canterbury has found in 1996 further 20-30% improvements were possible in existing building stock EECA research suggests productivity gains 5-15%

5 Case Study Building

6 Case Study Building Energy Savings Potential 25% savings = $50000/year 70% savings = $140000/year

7 Barriers to EPC Lack of interest in the project from building management company (no obvious gain) No knowledge of energy management (and EPC) among both tenants and building manager Energy Use Indices hard to find ESCO numbers limited in NZ Energy Services Contractors see EPC as costly Australasian EPC Association focus on Australia only Promotion by EECA limited to big projects with Honeywell

8 Overseas Experience EPC in US since conception Estimated revenues of this industry were $3.6 billions in 2006 Initiall subsidies helpfull Active Association EPC Facilitators

9 Overseas Experience Gradual move from simple to more comprehensive projects States policies allowing longer paybacks Enron collapse – loss of customer confidence Energy supply companies still active in EPC but scaled down Private buildings 18% of projects Renegotiating Lease Agreements

10 Overseas Experience Europe main activity federal buildings 2003 directive on Energy Performance of Buildings Energy Performance Certificates for all buildings from 2009 Eurocontract White Certificates Scheme

11 Overseas Experience Australia Association 1998 Subsidies and policies Green Lease Australian Building Greenhouse Rating

12 Stages of EPC Market Development Government support Association of EPC companies Facilitators and M&V Altered Lease agreements Market demand development Energy Performance Certificates for buildings

13 What Is Missing in NZ 1.ESCO (Energy Services Company) 2.Association 3.Government support 4.Altered lease agreements 5.Create market demand


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