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12L Tax Incentive M&V Case Study 30 September 2016 Onga Energy Efficiency and Management (Pty) Ltd

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Page 1: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

12L Tax Incentive M&V Case Study

30 September 2016

Onga Energy Efficiency and Management (Pty) Ltd

Page 2: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

Outline

1. Introduction to Onga

2. Onga M&V activities for 12L

3. Case study

Onga Energy Efficiency and Management (Pty) Ltd 2

Page 3: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

1. Introduction to Onga - Highlights

Onga Energy Efficiency and Management (Pty) Ltd 3

Detail Reference

First SANAS accredited M&V inspection body

2 SANAS Accredited Signatory

From May 2012 to May 2020

3 CMVP holders

3 PhD holders in Engineering

Over 8 years’ M&V experience

Page 4: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

1. Introduction to Onga – Service scope

• Full Scope M&V technical service Residential and commercial building EE

• Lighting, HVAC, Water heating

• Plug loads, building envelope

Industrial EE

• Conveyor belt, Fan, Air compressor,

• Pumping, Motor & VSD system

• Industrial process optimisation

• M&V training service Energy audit

M&V desktop & practice

• Optimal EE proposals Energy saving potential identification Optimal energy efficiency proposals Feasibility analysis: technical, economic, environmental, and social aspects

Onga Energy Efficiency and Management (Pty) Ltd 4

Buildings

HVAC

Lighting

Water Heating

Plug Device

Building Insulation

Page 5: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

1. Introduction to Onga – Ongoing projects

Onga Energy Efficiency and Management (Pty) Ltd5

Category Details

Ongoingprojects

Building energy audit, retrofit and M&V: 1846 buildings

Fan optimization: 11 industrial plants

Conveyor belt optimization: 2 industrial plants

Peak demand reduction: 1 hotel & resort

Lighting energy efficiency: supermarket, brewery

Compressed air optimization: car manufacturer

Statistics

Page 6: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

1. Introduction to Onga – Company profiles

Onga Energy Efficiency and Management (Pty) Ltd6

M&V request form

Onga 12L M&V roadmap

Onga company profile

Online M&V requesthttp://onga.co.za/188-2

Page 7: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

2. Onga M&V activities for 12L – General approach

• General approach– Cut once, measure twice, and compare

• Measurement– Option A: Retrofit isolation (key parameter measurement)

– Option B: Retrofit isolation (all parameter measurement)

– Option C: Whole facility

– Option D: Calibrated Simulation

• Verification– Operational verification: confirm the ECM functionality

– Savings verification: confirm whether expected savings achieved

Onga Energy Efficiency and Management (Pty) Ltd 7

Page 8: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

2. Onga M&V activities for 12L – Roadmap

Onga Energy Efficiency and Management (Pty) Ltd 8

Intention

Contract an Esco (can be a part of the client)

Contract an M&V body

Register on the Tax Incentive Online

Management System

Project implementation

Comissioning

Download EE certificate from the Online Management System

Claim tax allowance

Contract

Activate project

Stakeholder meeting

Site visit

Scoping report

M&V plan report

Baseline report

Post-implementation report

Performance assessment (PA) report

Approve baseline report

Approve PA report

Organisation/individual

Onga SANEDI

Page 9: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

2. Onga M&V activities for 12L – Details (1)

• Submit M&V request: – www. onga.co.za

• Costing & Contracting

• Project registration online – Appoint M&V inspection body

– https://saneditax.org.za/Symfony/web/app.php/home

• Scoping site visit (one day): – Communication

– Data collection

– M&V methodology discussion: project boundary determination, baseline and adjustments methods, M&V Plan, metering plan, savings determination, reporting periods, risk and uncertainty analysis

Onga Energy Efficiency and Management (Pty) Ltd 9

Page 10: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

2. Onga M&V activities for 12L – Details (2)

• Baseline report (15 working days)

• Review of baseline reports– Report submitted online by Onga

– Reviewed by SANEDI Pannelist (2-4 weeks)

• Post implementation site visit (1 day)– Completion certificate

– Operational verification on site

• Performance assessment (PA) report (10 working days)– Metering data collection

– Meter calibration certificate

– Savings calculation

• Review of PA reports (2-4 weeks)

• Performance certificate (PC) for tax reduction– Issued by SANEDI

Onga Energy Efficiency and Management (Pty) Ltd 10

Page 11: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – Background (1)

Onga Energy Efficiency and Management (Pty) Ltd 11

Items Details

Sectors Industrial plant

Technology VSD application on fan systems

Quantity 3 fans: 2 operational and 1 backup

Targeted savings 7 539 MWh

Expected tax rebate R 7 162 050

Funding scheme Performance contracting (ESCo & Client)

Table 1. Project background

Challenges: • Data availability for baseline modelling• Data driven model: energy - production• First principle model:

• Installation type• Density at fan inlet• Desired airflow• Pressure required to move the set airflow rate

Page 12: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – Background (2)

Onga Energy Efficiency and Management (Pty) Ltd 12

Milestones Date

Project registration 01/01/2015

M&V request 22/01/2015

Scoping site visit 04/02/2015

Baseline submission 23/07/2015

Baseline approval 24/11/2015

Project completion 25/03/2015

PI site visit 22/06/2016

Performance assessment 01/04/2015-31/03/2016

Table 2. Project milestones

FAQs: • Project registration: who is responsible for this?• Average project life cycle – registration to certificate?

Is it possible to shorten the process?

Page 13: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – Scoping site visit

Onga Energy Efficiency and Management (Pty) Ltd 13

Figure 1. Fan to upgrade Figure 2. Existing metering system for Fan#2

Site visit: 04/02/2015

• FAQs:• Accessibility • Safety – SANAS requirements

Page 14: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – M&V plan

Onga Energy Efficiency and Management (Pty) Ltd 14

• Project boundary– Furnace & the fan system

• M&V Option– Retrofit isolation: key parameter measurement

• Uncertainties– No sampling uncertainty since all fans are measured

– Handle measurement uncertainty

– Minimize modelling uncertainty

• Challenges– Selectin of the optimal M&V option

– M&V cost vs. uncertainty handling

Page 15: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – Metering plan

Onga Energy Efficiency and Management (Pty) Ltd 15

Table 3. Metering configuration for baseline

Table 4. Metering configuration for PA

Page 16: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – Calibration certificate

Onga Energy Efficiency and Management (Pty) Ltd 16

FAQs:

• Applicability of historical baseline data?• Who provide the calibration service?• Cost of calibration?• When to calibrate?• Time required?• Validity period of calibration?• Does the calibrate happen in lab or in-situ?• Does all type of meters need calibration?

Page 17: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – Data for baseline

• Collected data for baseline:– Fan energy usage: 01/10/2014 – 31/01/2015

– Fan operation schedule: 01/02/2014 – 31/01/2015 (12 months)

– Plant production data: 01/10/2014 – 31/01/2015

• Baseline period– Immediate 12 months before project implementation

– 01/02/2014 – 31/01/2015 (12 months)

• Calculation of baseline– Baseline energy profile: monthly energy usage in kWh

• FAQs– Review & revision process

Onga Energy Efficiency and Management (Pty) Ltd 17

Page 18: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

0

200000

400000

600000

800000

1000000

1200000

1400000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

kWh

Energy Baseline

3. Case study - Baseline

Onga Energy Efficiency and Management (Pty) Ltd 18

Baseline Energy: 10 506 912 kWh

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3. Case study – Baseline adjustments

Onga Energy Efficiency and Management (Pty) Ltd 19

y = 2E-13x3 - 4E-07x2 + 0.235x - 4973.9R² = 0.8865

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

0 100000 200000 300000 400000 500000 600000 700000 800000

Dai

ly e

ne

rgy

(kW

h)

Daily production (ton)

Baseline modelling

Daily Energy (kWh) Poly. (Daily Energy (kWh))

Page 20: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

3. Case study – PI site visit

Onga Energy Efficiency and Management (Pty) Ltd 20

CoC

Metering system VSD control panel

Discussion:• When to conduct PI site

visit?

FAQs• Implementation take too

long, baseline validity problem?

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0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

kWh

Energy Performance

Baseline (kWh) Actual (kWh) Impact (kWh)

3. Case study – Performance

Onga Energy Efficiency and Management (Pty) Ltd 21

Total Energy Savings: 6 087 730 kWh

“Adjusted”

Discussion:

• M&V source files for panelist review? IP protection and confidentialities?

Page 22: 12L Tax Incentive M&V Case Study -   · PDF fileOutline 1. Introduction to Onga 2. Onga M&V activities for 12L 3. Case study Onga Energy Efficiency and Management (Pty) Ltd 2

Contact Onga

Onga Energy Efficiency and Management (Pty) Ltd 22

Onga Energy Efficiency and Management (Pty) Ltd

CEO: Prof. Xiaohua XiaCell: 082 747 7986Email: [email protected]

General Manager:Dr. Xianming YeCell: 071 367 9787Email: [email protected]

Web: www.onga.co.zaM&V request submission: http://onga.co.za/188-2