green building & energy efficiency€¦ · 5 9 energy performance contract model • simple...
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Green Building & Energy Efficiency
Shane TedjaratiHoneywell China and India President & CEOSep 18, 2008
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Country Energy Efficiency (2005)Country Energy Efficiency (2005)
China’s Energy Inefficiency Challenge
*Energy Intensity - total primary energy consumption per dollar of GDP (Btu per 2000 U.S. dollars using market exchange rates)
Source: IMF, US Energy Information Administration:” International Energy Annual 2005”
One of the World’s Least Energy Efficient Economies
U.S.
Russia
China
JapanUnited Kingdom
South Africa
IndiaThailand
Canada
South Korea
AustraliaMexicoNorway
France
SwitzerlandHong Kong Germany
Singapore
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
GDP (2005 US bn)
Ener
gy In
tens
ity *
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Big Challenges Ahead to Meet Energy & Emission Target
Gov’t Commitment to Energy Efficiency
1.461.22
0.98
0
0.51
1.5
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2000 2005 2010
*TCE index: ton coal equivalent per RMB10k of GDPCOD: chemical oxygen demand; SO2: sulphur dioxideSource: China Energy Statistical Yearbook
• 20% energy consumption reduction target from 2005 to 2010 (11th 5 Year Plan)- Up till 1Q2008, down only 7.22%
Energy Efficiency Target Emission Target
• Emission control target: COD down 10%,SO2 down 10% China (11th 5 Year Plan)
- China missed pre-set target in ’06- SO2 down 4.66% and COD down
3.14% in ’07, first time decrease
“Energy saving is a priority and one of the basic principles the government should follow in the future”
- President Hu
TCE index*
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China’s Major Energy Users
•Local government mandates emerging
•Large energy users include steel, cement, building materials, metallurgy facilities
•Local government mandates emerging
•Large energy users include steel, cement, building materials, metallurgy facilities
•Fastest growing energy consumption (expected to reach 33% in 2010)
•Half of all new building construction will be in China (World Bank estimate)
•15% energy consumed in commercial, 85% in residential
•Fastest growing energy consumption (expected to reach 33% in 2010)
•Half of all new building construction will be in China (World Bank estimate)
•15% energy consumed in commercial, 85% in residential
Agriculture5%
Transportation10%
Building23%
Industrial62%
Building SectorIndustrial Sector
85% of Energy Consumed by Industrial, Building Sectors
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Integrated Approach to Energy ManagementIntegrated Approach to Energy Management
Innovative Solutions
Advanced Products
Right Business Models
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Building Energy Solutions
Honeywell Enterprise Buildings Integratora complete and customizable solution managing HVAC, lighting and energy systems, security, digital video, life safety and asset tracking applications
Honeywell Energy Manager advanced energy information application that automatically control equipment on-off times and manage energy utilization across entire enterprise
Honeywell Atrium an innovative, web-based energy analysis service that can collect and analyze internal meter data, define potential savings and provide recommendations
Energy Management Demand Response Service
Energy saving through shifting load from peak to off-peak hours
• Synchronize utility suppliers’ needs with those of residential and small commercial customers
Honeywell has been a pioneer in the demand response market since the 1990s
• Installed more than 950,000 load control devices
SolutionsSolutions
Applying Smart Technologies in A Smart Way
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Industrial Energy Solutions
Manufacturing Execution Systems (MES)Single system to track and report multiple sources of energy usage information against targets
Advanced Process Control Minimize fuel and other energy costs associated with production as well as improve efficiency by maximizing throughput and yields
Simulation TechnologyModel industrial complex energy circuit, heat integration systems and boiler feed water circuits
Energy Solutions for Utility and Industrial PowerAnalyze, optimize and diagnose plant performance to minimize fuel consumption and emissions, increase heat rates
Emissions Monitoring Optimize and streamline environmental reporting, track emission credits/allowances
SolutionsSolutions
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Energy Related Product Offerings
Building Automation Controllers
Energy-efficient Lighting
Lighting Controllers
Thermostats
Foam Insulation Materials
PV Shielding Materials
Sensors Variable Frequency
Drivers
Combustion Controllers
Valves
Manufacturing Process
Controllers
~50% of Honeywell's product portfolio delivers energy
savings and efficiency
ProductsProducts
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Energy Performance Contract Model
• Simple concept : leverage money saved on energy and operating costs to pay for building improvements
• Honeywell is the recognized global leader and pioneer in the guaranteed energy savings concept- Early 1980s – initiated guaranteed energy savings concept- Thousands of energy services contracts in force today
Before Program Term
Utility Budget-Lights-Air Conditioning- Compressed Air
OperatingFunds
OperatingFunds
Utility Budget-Lights-Air Conditioning- Compressed Air
Investment-Modernization-Energy Retrofits
Operating Budget
OperatingFunds
Utility Budget-Lights-Air Conditioning- Heating
Investment-Modernization-Energy Retrofits
Savings
During Program Term
OperatingFunds
Utility Budget-Lights-Air Conditioning- Compressed Air
After Program Term
OperatingFunds
Continued Savings
Savings
Business Model
Business Model
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• Boiler Plant Improvements• Chiller Plant Improvements• Building Automation Systems• HVAC• Lighting Improvements• Building Envelope Modifications• CHW, HW, and Steam Distribution
Systems• Electric Motors and Drives• Refrigeration• Distributed Generation• Renewable Energy Systems• Energy/Utility Distribution Systems• Water and Sewer Conservation Systems• Electrical Peak Shaving/Load Shifting• Energy Cost Reduction through Rate
Adjust.• Energy Related Process Improvements• Energy Surveys
• Boiler Plant Improvements• Chiller Plant Improvements• Building Automation Systems• HVAC• Lighting Improvements• Building Envelope Modifications• CHW, HW, and Steam Distribution
Systems• Electric Motors and Drives• Refrigeration• Distributed Generation• Renewable Energy Systems• Energy/Utility Distribution Systems• Water and Sewer Conservation Systems• Electrical Peak Shaving/Load Shifting• Energy Cost Reduction through Rate
Adjust.• Energy Related Process Improvements• Energy Surveys
• Installation of a Energy Information System that will enable PWBC to monitor, manage and control facilities from a central command post
• Peak shaving and natural gas procurement• Installation of a new natural gas
distribution system expanding the limited underground existing natural gas distribution system
• Installation of new natural gas-fired steam and hot water boilers to replace existing outdated central steam plant
• Installation of a comprehensive metering program
• Energy saving lighting upgrade• Water conservation measures post wide• Optimization or removal of central plants
• Installation of a Energy Information System that will enable PWBC to monitor, manage and control facilities from a central command post
• Peak shaving and natural gas procurement• Installation of a new natural gas
distribution system expanding the limited underground existing natural gas distribution system
• Installation of new natural gas-fired steam and hot water boilers to replace existing outdated central steam plant
• Installation of a comprehensive metering program
• Energy saving lighting upgrade• Water conservation measures post wide• Optimization or removal of central plants
Fort Bragg, North Carolina(The home of > 45,000 troops)
Total Contract Amount$ 100 mn up to date
Annual Energy Spending $36 mn
Annual Energy Savings$ 9.5mn per year, equal to 26% saving rate
Project Term10 years
Facility Size> 30,000,000 sq. ft.
Number of Buildings> 7,500
EPC TechnologiesProject Content
Program Highlights
HON Cases - Total Energy Solution
Note: EPC Energy Performance Contract
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HON Cases in China – Tsingtao Beer
Shenzhen Tsingtao Beer Asahi upgraded facilities with Honeywell’s Energy Performance Contracting model
• No direct investment by Tsingtao Beer• 5-year contract term
The program included a centralized control system to optimize energy management across the facilities:
• Heat recovery • Cooling and HVAC system• Motor controller
Exceeded contract guarantee and achieved >RMB 3 mn (17%) energy savings
A Successful Case of Win-Win EPC Model in China
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Honeywell & Energy Efficiency
~50% Honeywell products can improve energy efficiency
10-25% less energy globally by using existing Honeywell technologies
20-30% less energy in commercial buildings by using Honeywell EPC*
Honeywell has completed > 5,000 energy-efficiency projectsand saved > $3bn in energy and operating costs globally
* Energy Performance Contract
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The Way Forward
• Enhance systematic monitoring of key energy consumption metrics - Create a baseline for tracking and keep measuring progress
• Continue to develop advanced longer-term technologies …- Breakthrough technologies, e.g. affordable hydrogen fuel cells, that would clearly revolutionize
industry/society
• …but meanwhile push for ubiquitous application of existing technologies- Our experience has repeatedly demonstrated that systematically applying simple, readily-available
technologies/solutions can usually reduce energy consumption in the order of 20%
• Drive to retrofit old factories, buildings, homes - Immediate results by adopting the latest energy saving technologies
• Rigorously drive enforcement by government- Positive reinforcement: Offer tax rebate incentives and financing support - Negative reinforcement: Monitor and publicize the biggest offenders
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Key Enablers
• Well-accepted industry standards - Establish criteria of rating building energy efficiency
• Broad public awareness programs and campaigns- Promote Green Building & Energy Efficiency concept- Create positive public pull towards certified green buildings- Strong focus on youth/school programs to develop life-long habits
• Government as role-model in the application of energy conservation practices- Start with programs to upgrade and certify all government buildings as energy efficient- Actively share goals, timeframes and results with industry and the public
• Forums to continually bring companies and industry together- e.g. MHC Green Building Conference
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Thank YouThank You