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The National Energy Services Framework

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Codema
Codema

Alan Ryan (SEAI) gives an overview of the National Energy Services Framework at Codema's EPC Information Seminar in The Morgan Hotel in Dublin on 13 October 2015 as part of the EESI2020 project.

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The national energy services framework Alan Ryan 13th October 2015
Contents • Context • Energy contracting • Project Development Process • The framework • Progress to date • Next steps
15P0055 •33% by 2020 •3,240 GWh by 2020 •‘Lead by example’: EM •‘Exemplary role’ •Buildings ≥A3 •EM practices •Reporting to SEAI •Energy Audits •EE Procurement •Energy Services •Triple E Register (procurement of equipment/vehicles) Due in Q3 2015… •Better procurement of energy supplies, EE & RE services, products & capital projects•DEC > 500 m2 •July 2015: DEC > 250 m2 •2018: “nearly zero energy” •Technical Guide Part L •‘Exemplary role’ wrt RE: construct- ion & renovation •42.5% RES-E by 2020 •12% RES-H by 2020 •10% RES-T by 2020 Energy Policy: Public Sector 2015 IRL Energy Policy NEEAP 1, 2 & 3 SI 426 of 2014 SI 151 of 2011 Green Tenders EPBD Building Regul- ations SI 147 of 2011 NREAP 3
Public Sector Spend – approx 600m
0 20 40 60 80 100 120 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NormalisedEnergyPerformanceIndicator Actual Glidepath Roadmap to 33% energy efficiency target by 2020 BetterWorse
• 2010 report - on target for 33% • 2011 interim report (Not published) – 100 of 135 reported – On target • 2012/2013 – 400 requested to report – 238 reported sufficient data – 14.8% improvement • 2014 – 325 requested to report – 281 reported sufficient data – 17% improvement Progress ? Clear some are ahead, some are responding, some are not
Public Sector Programme supports - summary Getting commitment 68 partners > 75% elec demand Networking Best practice sharing Assessments and other services Energy Services Framework Supports for projects National Energy Efficiency Fund Track organisation performance Track projects performance
Structured Energy Management – the engine for success Baseline - 33% With structured programme Ad hoc approach
Two tools - Web tool - Advanced Diagnostic Tool - 3 full day and 3 half days training programme - Gap Analysis - External Certification (not supported by SEAI)
• Buying a guaranteed energy saving • If they don’t meet the saving target, until target achieved, then – Don’t pay them part of what their owed – Energy Performance Related Payment (EPRP) – Don’t pay them at all – Energy Performance contracting (EPC) – Pay for a guaranteed cost of energy – Local Energy Supply Contracting (LESC) • Standard contracts, guides and supports at www.seai.ie/Your_Business/National_Energy_Services_Fr amework/ • Signed off by DPER, OGP, GCC, CSSO, PSC • 11 public sector projects testing EPC/LESC • Multiple EPRP examples, a condition of grant supports Energy Contracting
Energy contracting projects V. non energy contracting projects? All With Client Client Risk All With ESCO Traditional EPRP EPC ESCO Risk PerformanceRisk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract Energy Performance Risk Transfer
What are LESC, EPC, EPRP? Traditional Consultant - Design, procure, supervise Contractor – Supply, install, commission Client – Pays for works…regardless of performance Energy Performance Related Payment Consultant – design / output specification, procure, supervise, (guarantees performance) Contractor/ESCO – (design), install, commission, guarantees performance / savings… or losses a portion of fee Client – Pays for works … final payment on demonstrated performance Local Energy Supply Contract Consultant – output specification, procure, supervise ESCO – Design, install, commission, operate & maintain, supplies energy for agreed rate Client – Pays for energy. May pay capital cost. Energy Performance Contract Consultant – output specification, procure, supervise ESCO – Identifies energy savings, design, install, commission, maintain, guarantees savings by paying for any shortfall. Client – Pays for savings. Energy Efficiency Suitedtofinancing
Energy services in more detail The Framework – 4 elements Energy Performance Contracting Local Energy Supply Contracting Energy Performance Related Payments 11 public sector exemplar projects
Project development process 5 Steps to Deliver Successful Energy Projects Identify Project Initial Appraisal Detailed Appraisal Procurement Contract Implementation Traditional Procurement ? Energy Contracting ? Traditional Procurement ? Energy Contracting ? START Register your interest with SEAI at energycontracting@seai.ie
Energy Development Process 5 Steps to Deliver Successful Energy Projects Detailed Appraisal Procurement Contract Implementation or Traditional Procurement ? Energy Contracting ? “Our organisation wants to buy a product or service, of a specific standard to reduce energy use”. Traditional Procurement Identify Project Initial Appraisal “Our organisation wants to buy guaranteed savings. Unlike the traditional route the risk of performance is absorbed by the supplier ”. Energy Contracting
Technical Assistance Identify Project Initial Appraisal Procurement Contract Implementation Traditional Procurement ? Energy Contracting ? Energy Contracting ? Traditional Procurement ? Detailed Appraisal Technical Assistance Detailed Appraisal & Procurement Metering, project managment Legal & Procurement Advice Technical: M&V, Technical Assistance Initial Appraisal Prelim Audit / Feasibility Temporary Metering Project Management Energy spend < €1m: 50% or €7,500 > €1m: 50% or €15,000 EPRP: 75% or €15,000 EPC: 75% or €37,500 Energy management Programme SEAI Assessment Partnership programme
Overview of supports Information Briefings Project clinics Helpdesk Templates, handbook, tools, guides Experts Mentoring Technical assistance grant Community of practice Readiness assessments
Public Sector Exemplars €20-30m investment, €2-3m savings Fingal County Council University College Cork
More progress => More Support Identify Project Initial Appraisal Procurement Contract Implementation Traditional Procurement ? Energy Contracting ? Energy Contracting ? Traditional Procurement ? Detailed Appraisal
Case stories EPRP EPC / LESC Dublin port Stewarts Care Coilte Royal Victoria E&E hospital Water services Exemplar projects Lighting projects Boiler projects
Case stories
Good • Project development process • Exemplar workshop series • Access to expert advice • Tools i.e. financial assessment tool and advice • SEAI or DCENR visits / meetings with the team • Project champions at all levels
To improve • More doing ISO50001 • Impetus – at senior management level • Assurance - – Finance people – Procurement people – Senior management teams • Support model – especially the early days • What will do that – Success stories – National policy – Clearer implications
Project pipeline • Health • Public lighting • Buildings • Right scope – vital to consider early • Energy contracting option? • Long process • Want to do it right – need case stories • Financing
‘Impetus’ • Energy white paper • Public sector energy efficiency action plan • 2014 annual report • Development – Market interaction – Early supports – Enhance documentation – Awareness
Contents • Context • Energy contracting • Project Development Process • The framework • Progress to date • Next steps
The Sustainable Energy Authority of Ireland is partly financed by Ireland’s EU Structural Funds Programme co- funded by the Irish Government and the European Union. Questions Contact Alan.ryan@seai.ie Publicsector@seai.ie

More Related Content

The National Energy Services Framework

  • 1. The national energy services framework Alan Ryan 13th October 2015
  • 2. Contents • Context • Energy contracting • Project Development Process • The framework • Progress to date • Next steps
  • 3. 15P0055 •33% by 2020 •3,240 GWh by 2020 •‘Lead by example’: EM •‘Exemplary role’ •Buildings ≥A3 •EM practices •Reporting to SEAI •Energy Audits •EE Procurement •Energy Services •Triple E Register (procurement of equipment/vehicles) Due in Q3 2015… •Better procurement of energy supplies, EE & RE services, products & capital projects•DEC > 500 m2 •July 2015: DEC > 250 m2 •2018: “nearly zero energy” •Technical Guide Part L •‘Exemplary role’ wrt RE: construct- ion & renovation •42.5% RES-E by 2020 •12% RES-H by 2020 •10% RES-T by 2020 Energy Policy: Public Sector 2015 IRL Energy Policy NEEAP 1, 2 & 3 SI 426 of 2014 SI 151 of 2011 Green Tenders EPBD Building Regul- ations SI 147 of 2011 NREAP 3
  • 4. Public Sector Spend – approx 600m
  • 6. • 2010 report - on target for 33% • 2011 interim report (Not published) – 100 of 135 reported – On target • 2012/2013 – 400 requested to report – 238 reported sufficient data – 14.8% improvement • 2014 – 325 requested to report – 281 reported sufficient data – 17% improvement Progress ? Clear some are ahead, some are responding, some are not
  • 7. Public Sector Programme supports - summary Getting commitment 68 partners > 75% elec demand Networking Best practice sharing Assessments and other services Energy Services Framework Supports for projects National Energy Efficiency Fund Track organisation performance Track projects performance
  • 8. Structured Energy Management – the engine for success Baseline - 33% With structured programme Ad hoc approach
  • 9. Two tools - Web tool - Advanced Diagnostic Tool - 3 full day and 3 half days training programme - Gap Analysis - External Certification (not supported by SEAI)
  • 10. • Buying a guaranteed energy saving • If they don’t meet the saving target, until target achieved, then – Don’t pay them part of what their owed – Energy Performance Related Payment (EPRP) – Don’t pay them at all – Energy Performance contracting (EPC) – Pay for a guaranteed cost of energy – Local Energy Supply Contracting (LESC) • Standard contracts, guides and supports at www.seai.ie/Your_Business/National_Energy_Services_Fr amework/ • Signed off by DPER, OGP, GCC, CSSO, PSC • 11 public sector projects testing EPC/LESC • Multiple EPRP examples, a condition of grant supports Energy Contracting
  • 11. Energy contracting projects V. non energy contracting projects? All With Client Client Risk All With ESCO Traditional EPRP EPC ESCO Risk PerformanceRisk EPRP transfers some performance risk to the ESCO ESCO pain/gain share for savings less/greater than target ESCO guarantees 15%savings and puts 10% ofits costs at stake ESCO guarantees 15% savings and puts 100% ofits costs at stake pending verification ESCO guarantees 20%savings and covers/ absorbscost ofany savings shortfalls over life of contract Energy Performance Risk Transfer
  • 12. What are LESC, EPC, EPRP? Traditional Consultant - Design, procure, supervise Contractor – Supply, install, commission Client – Pays for works…regardless of performance Energy Performance Related Payment Consultant – design / output specification, procure, supervise, (guarantees performance) Contractor/ESCO – (design), install, commission, guarantees performance / savings… or losses a portion of fee Client – Pays for works … final payment on demonstrated performance Local Energy Supply Contract Consultant – output specification, procure, supervise ESCO – Design, install, commission, operate & maintain, supplies energy for agreed rate Client – Pays for energy. May pay capital cost. Energy Performance Contract Consultant – output specification, procure, supervise ESCO – Identifies energy savings, design, install, commission, maintain, guarantees savings by paying for any shortfall. Client – Pays for savings. Energy Efficiency Suitedtofinancing
  • 13. Energy services in more detail The Framework – 4 elements Energy Performance Contracting Local Energy Supply Contracting Energy Performance Related Payments 11 public sector exemplar projects
  • 14. Project development process 5 Steps to Deliver Successful Energy Projects Identify Project Initial Appraisal Detailed Appraisal Procurement Contract Implementation Traditional Procurement ? Energy Contracting ? Traditional Procurement ? Energy Contracting ? START Register your interest with SEAI at energycontracting@seai.ie
  • 15. Energy Development Process 5 Steps to Deliver Successful Energy Projects Detailed Appraisal Procurement Contract Implementation or Traditional Procurement ? Energy Contracting ? “Our organisation wants to buy a product or service, of a specific standard to reduce energy use”. Traditional Procurement Identify Project Initial Appraisal “Our organisation wants to buy guaranteed savings. Unlike the traditional route the risk of performance is absorbed by the supplier ”. Energy Contracting
  • 16. Technical Assistance Identify Project Initial Appraisal Procurement Contract Implementation Traditional Procurement ? Energy Contracting ? Energy Contracting ? Traditional Procurement ? Detailed Appraisal Technical Assistance Detailed Appraisal & Procurement Metering, project managment Legal & Procurement Advice Technical: M&V, Technical Assistance Initial Appraisal Prelim Audit / Feasibility Temporary Metering Project Management Energy spend < €1m: 50% or €7,500 > €1m: 50% or €15,000 EPRP: 75% or €15,000 EPC: 75% or €37,500 Energy management Programme SEAI Assessment Partnership programme
  • 17. Overview of supports Information Briefings Project clinics Helpdesk Templates, handbook, tools, guides Experts Mentoring Technical assistance grant Community of practice Readiness assessments
  • 18. Public Sector Exemplars €20-30m investment, €2-3m savings Fingal County Council University College Cork
  • 19. More progress => More Support Identify Project Initial Appraisal Procurement Contract Implementation Traditional Procurement ? Energy Contracting ? Energy Contracting ? Traditional Procurement ? Detailed Appraisal
  • 20. Case stories EPRP EPC / LESC Dublin port Stewarts Care Coilte Royal Victoria E&E hospital Water services Exemplar projects Lighting projects Boiler projects
  • 22. Good • Project development process • Exemplar workshop series • Access to expert advice • Tools i.e. financial assessment tool and advice • SEAI or DCENR visits / meetings with the team • Project champions at all levels
  • 23. To improve • More doing ISO50001 • Impetus – at senior management level • Assurance - – Finance people – Procurement people – Senior management teams • Support model – especially the early days • What will do that – Success stories – National policy – Clearer implications
  • 24. Project pipeline • Health • Public lighting • Buildings • Right scope – vital to consider early • Energy contracting option? • Long process • Want to do it right – need case stories • Financing
  • 25. ‘Impetus’ • Energy white paper • Public sector energy efficiency action plan • 2014 annual report • Development – Market interaction – Early supports – Enhance documentation – Awareness
  • 26. Contents • Context • Energy contracting • Project Development Process • The framework • Progress to date • Next steps
  • 27. The Sustainable Energy Authority of Ireland is partly financed by Ireland’s EU Structural Funds Programme co- funded by the Irish Government and the European Union. Questions Contact Alan.ryan@seai.ie Publicsector@seai.ie

Editor's Notes

  1. 500 public sector organisations – can cover large portions of the spend dealing with relatively few actors Other includes non-commercial state agencies, regional authorities, VEC, harbours/ports
  2. LAs know the GWh gap to target and what size of projects to achieve it. 3rd level and others modelling what projects will deliver the target. If a LA PL accounts for 30-60% of energy use, likely only projects of scale in PL will achieve target for them
  3. Improvements suspect largely due to sweating the assets, doing more for same or less energy.
  4. Contact us – normally start by doing an energy assessment which proven to save 10% average, and identifies potential up to 30% on a particular site. Get trained using energy map – 5% average saved in an organisation Get strategic – partnership – sustained commitment to 2020 – tailored support
  5. 36m 98 PBs in 2011 7m approx 18 PBs in 2010 Background to Figures Shown Partnership Partners’ energy consumption = 75% of consumption reported by 98 largest public bodies for 2011 Partners saved €32 in 2011 – calculated as per point 3 below (@ €0.05/kWh saved). 2011 Savings Based on Data from 93 Public Bodies: M&R savings are calculated by subtracting each organisation’s 2011 energy consumption from the business as usual energy consumption that would have been consumed had the organisation maintained its baseline efficiency level (EnPI). This is calculated on a primary energy basis, giving 796 GWh savings by 2011 or 10.6% Stripping out the savings associated with electricity grid improvements gives a savings of 714 GWh or 9.6% (primary energy) Euro value of these 2011 savings and lower savings in 2010 = €45M. The absolute reduction in known consumption among the 93 organisations was 506 GWh (or 309 GWh when grid savings not included) 451 energy saving projects were reported as saving 172 GWh
  6. 36m 98 PBs in 2011 7m approx 18 PBs in 2010 Background to Figures Shown Partnership Partners’ energy consumption = 75% of consumption reported by 98 largest public bodies for 2011 Partners saved €32 in 2011 – calculated as per point 3 below (@ €0.05/kWh saved). 2011 Savings Based on Data from 93 Public Bodies: M&R savings are calculated by subtracting each organisation’s 2011 energy consumption from the business as usual energy consumption that would have been consumed had the organisation maintained its baseline efficiency level (EnPI). This is calculated on a primary energy basis, giving 796 GWh savings by 2011 or 10.6% Stripping out the savings associated with electricity grid improvements gives a savings of 714 GWh or 9.6% (primary energy) Euro value of these 2011 savings and lower savings in 2010 = €45M. The absolute reduction in known consumption among the 93 organisations was 506 GWh (or 309 GWh when grid savings not included) 451 energy saving projects were reported as saving 172 GWh
  7. DPER – Dept Public Expenditure and Reform OGP – Office of Government Procurement GCC – Government Contracts Committee CSSO – Chief State Solicitors Office PSC – Public Spending Code