Electricity and the cost of doing business in the Philippines

Transcription

1 Electricity and the cost of doing business in the Philippines Philippe Reveilhac President Schneider Electric Philippines 2nd European Union-Philippines Meeting on Energy Energy Efficiency to Boost Economic Growth 29 th May 2013

2 Well Known Fact About Philippines Ideal investment destination International credit rating upgrade BBB- Resilient economy that can weather a global economic downturn - GDP in 20124Q grew by 6.8%, full year 6.6% - GDP value of PH represents 0.36% of the world s economy Strategic logistics hub to Asia (where more then 2B people resides) - Within proximity are demand centers such as China, Indonesia & India Abundant resources that provides endless possibilities to invest - 5 th among mineralized country in the world - 2 nd in gold reserves, 4 th in copper, 5 th in nickel & 6 th in chromites What sets apart? - The Filipinos References: Bloomberg TV, Worldbank, NSCB, CIA Worldfact Book and PH & WW news releases 2

3 In the Philippines Today: 94M million inhabitants 40% lives in cities Approx 20% have access to a decent energy infrastructure By 2030: 125 million inhabitants 60% will live in cities an additional (approx) 2 million people in the energy middle class 3 Source: UN Population Fund Report 2010

4 Cost of the final service /kwh Electrical energy is generally more expensive for those who have less access to it Traditional systems (consumables) (micro elec) Systems to be implemented (mini elec) Conventional systems (Interconnected network) 150 Dry batteries Candles Rural : villages Scattered housing Dense and motorized centers Sub - urban, urban 15 Petrol/Gas Lamps 1,5 0,15 Interconnected power plants and paid off grid 0,015 Photobatteries batteries Isolated genset + micro grid Source: AFD Watt kwatt MWatt Installed power 4

5 Energy Cost * Philippines is one of the highest rated country in the world! References: International Energy Agency 5

6 The Costs of Power Failure 6

7 Impact of Energy to Businesses References:

8 Controlling energy risks should not just be limited to having emergency generators! - Michael Bruch, AGCS Allianz 8

9 The Jurassic Grid Old-style power distribution Centralised Generation Residential Industry Building Transmission Distribution Datacenter Commercial & Industrial Central production adapting to demand variation Top-down energy flow Production / consumption balance done by integrated utility companies Rather passive users 9

10 Electricity networks are becoming more complex, less stable! To continue to efficiently balance supply & demand, the grid needs to become smarter drivers Growing electricity demand accelerators Technology availability Need to reduce CO 2 emissions Active government & regulators Constraints on existing networks Active end-users making the Smart Grid happen Schneider Electric 10

11 The Smart Grid Communication and software at all levels Smart Grid Centralised Generation 4 Utility network Consumers Transmission Distribution 3 Consumers Active Residential Consumers Active Industry Buildings Data Centres 3 Electric Vehicles & Energy Storage 1 Renewable Energy Plants Active Energy Efficiency: Energy visibility & Means to act 2 Infrastructure 1 Distributed Generation Flexible distribution Renewables integration Electric vehicle charging Demand-response Schneider Electric 11

12 Energy challenges & opportunities are everywhere Supply Side More Efficient and Cleaner Supply Demand Supply Management + Metering & Analysis Demand Side More Efficient Use Conservation & Management Cleaner supplies will take time to implement Current technologies allow us to target 30% savings We must develop technologies and business models to increase renewable energies penetration Mid term approach We must focus on Energy Efficiency to solve our energy dilemma Short term action Schneider Electric 12

13 We must enable high performance green buildings & smart cities for our future Future smart and green come together to deliver bright green buildings Focus on efficiency and operational performance over time (LEED EB:O&M) Carbon Neutral buildings, micro grids, eco-cities Net Zero Energy & Positive Energy buildings Connect to Electrical Vehicles Use renewable energy Today Focus on environmental impact of construction (green design) Time Schneider Electric 13

14 100 units of Fossil Fuel 38.5 units 35 units 22 units Fossil Fuel Power Plant Power Transmission Building Facilities Lost through inefficient generation and heat loss Lost through transmission and distribution Wasted through inefficient end use Schneider Electric 14

15 Understanding Building Lifecycle Costs Building life cycle costs Development CAPEX = capital investment + operation costs Ongoing OPEX Construction 11% Financing 14% Operation and Upgrades 75% Source : 3 to 5 years 30 to 35 years Real Estate Developers Investors Construction Companies Architects Engineers Contractors Owners Facility Managers Occupants Energy Management minimizes ongoing costs, which is 75% of the life cycle cost of the building. Schneider Electric 15

16 Active Energy Management: The fastest way to save on energy, curb CO2 emissions and reduce operation cost 1 Find out what the challenge is Energy audit & metering Passive Energy Efficiency Active Energy Management Fix the basics Optimise through automation & regulation Monitor, maintain, improve Low consumption devices, insulation material, power factor correction Solutions in : building management, power management, motor control, lighting control Metering, monitoring and consulting services, EM analysis software Schneider Electric 16

17 A few examples of REAL $aving$ 17

18 Case Study 1: Building in France ISO 50001: first certified building in the world! 4 Final energy consumption vs. previous sites in the area 80 kwh/m²/ yr Final energy consumption ROI in 5 to 7 years A Green building Equipped with SE solutions Electric Vehicles charging station with PV solar panel roof Smart grid-ready Full monitoring Certified ISO14001 HQE Exploitation NF EN

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25 Case Study 2: A Manufacturing Plant in Philippines 25

26 Energy Savings in the Plant Key Success Factors Use Lifecycle Solution for Energy Efficiency Initiatives in the Plant. Fast implementation to measure energy using Powerlogic ION Meters Regularly recording, monitoring and analysis with Powerlogic ION Enterprise System Commitment from each contributors Schneider Electric 26

27 Step 1 Energy Consumption Monitoring The basis of a successful energy efficiency program is to implement an Energy Management System Measure PowerLogic Power Metering System cover all 6 sites with 84 power meters to survey the electricity consumption Regularly monitoring and analysis PowerLogic data Real time data logging and reporting was made through StruXureware power monitoring MDB1 Savings: ~10% Schneider Electric 27

28 Step 2 Awareness! Fix the basics Optimized the workload of air compressor and reduce the energy usage to setup new air pressure level % of Kw After Before After The charts show; Air compressors after reduced air pressure, real power significant drop ( 69Kw. to 64Kw.) Before 15% Savings Immediately! Approx P8M savings Educating employees to switch off lights & air condition when leaving the rooms/offices 70Kw New office 50Kw 19Kw Existing office 21Kw 90Kw New office 50Kw Existing office 55Kw 35Kw Schneider Electric 28

29 Step 3 Lighting Optimization & Control Automatic control for switching off unnecessary lights lead to good energy savings. Automate Replacement of Metal Halide with High Bay LED Lighting to the warehouse Savings: 5-7% Schneider Electric 29

30 Step 3 Motor Control Automate Variable Speed Drive (VSD) installation at the vacuum pump for the chiller system 10HP Variable Speed Drive (VSD) installation at main Air compressor 75HP Schneider Electric 30

31 Step 4 Energy Monitoring Monitoring Monitoring system Improvement (StruXureware) Access to the energy readings and logs through the internet Issuance of monthly energy reports Preparation data for improvement actions Schneider Electric 31

32 Results: Significant Energy Savings! Initial Savings: P43M worth energy savings 3,953,576 kwh savings Schneider Electric 32

33 Case Study 3: A Factory in the Philippines Energy Target Setting Scope of Work: Analysis of electricity consumption Contract Tariff Analysis Transformer load & distribution Assessment of Industrial Services Compressed Air Generation Refrigeration Plant Cooling Tower Water Pumping Boiler house & Air heaters HVAC Lighting Assessment of Process Detailed Project Description with savings calculation and required CAPEX for the EE initiatives. Schneider Electric 33

34 Energy Efficiency Initiatives: A Factory in Philippines What was done? Replaced Air Handling Unit (AHU) chilled water distribution pumps with VFD and high efficiency pumps Replace Valve Absorption Motor (VAM) with electrical chillers New Cooling water pumps with VFD and new rerouted headers Install new cooling water pumps with VFD and new headers More than P45M worth of savings Above 6000 MWh energy saved equivalent of tons of CO 2/t 28,980 trees to offset per year! Improvement of Power Factor in electrical distribution As project is still ongoing, more savings are expected! Schneider Electric 34

35 Case Study 4: A Tunnel in the Philippines Schneider Electric 35

36 Solar Structure Schneider Electric 36

37 Projected Savings The solar power is rated at 6.4 kwp. It generates 6,648 kwh per year. Total power demand reduction is 28,392 kwh (LED + solar power) or 51% energy savings. Only the right inverter, PVs, batteries, and lighting systems can provide maximum savings: RESULT Tubular Fluorescent Lights (T12) + High Pressure Sodium (HPS) LED + SOLAR POWER Consumption, in kw 6.58 kw 4 kw Php 10 / kw Php 570,000 per annum Php 230,056 per annum Power demand reduction 28,392 kwh (51%)

38 In Conclusion We cannot stop energy demand growth But we can change the way we use energy and reduce GHG emissions & eventually realize the savings from energy reduction

39 Energy Consumption Efficient devices and installation (10 to 15%) Optimized usage via automation (5 to 15%) 30% savings are available today thanks to a combination of 100% Up to 8% per year is lost without monitoring and maintenance program Up to 12% per year is lost without regulation and control systems 70% Monitoring & Maintenance (2 to 8 %) Time Schneider Electric 39

40 Energy Consumption Efficient devices and installation Optimized usage via automation but savings can be lost quickly Unplanned, unmanaged shutdowns of equipment and processes Lack of automation and regulation (motors, heating) No continuity of behaviours 100% 70% Up to 8% per year is lost without monitoring and maintenance program Monitoring & Maintenance Up to 12% per year is lost without regulation and control systems Schneider Electric 40 Time

41 We make the most of your energy! Thank you