SAVE THE PLANET, SAVE YOUR MONEY: CUTTING COSTS THROUGH RESPONSIBLE RESOURCE USE

Transcription

1 SAVE THE PLANET, SAVE YOUR MONEY: CUTTING COSTS THROUGH RESPONSIBLE RESOURCE USE Caribbean Conference on Sustainable Tourism Development Bermuda, April 2011 Bill Meade

2 Topics What the auditors found Energy efficiency and renewable energy technologies Profile of the Caribbean hotel industry Characteristics of energy use Energy savings opportunities Issues influencing hotel investment in EE Barbados case study Energy efficiency value chain

3 Wasted air-conditioning in guestrooms Open patio doors in guestroom Wireless door monitors

4 Poorly maintained refrigeration and AC Dirty refrigerator coil Damaged condenser fins from unit on roof

5 Poorly maintained solar water heaters Un-insulated hot water pipes Accumulated on solar hot water heater panel

6 Bad practices in the kitchen Tap left running in kitchen sink Walk in fridge door left open

7 Technology advances in bulb lighting Incandescent bulb Compact fluorescent bulbs Light Emitting Diode (LED) bulb

8 Technology advances in tube lighting T 12 fluorescent tube T 8 fluorescent w/ magnetic ballast LED tube

9 Technology advances in room air-conditioning Mini-split A/C unit Inverter type mini-split system

10 Integrated AC and hot water system Mini Split Compressors on the Roof VRV system with hot water production

11 Room energy conservation devices Automatic door closers Occupancy sensor Programmable thermostat

12 Energy conserving window technology Reflective window coating Double paned window Energy efficient louver

13 Energy conserving roof technologies Reflective roof coating Spray-on roof insulation Roof ventilation products

14 Solar energy technologies Vacuum tube solar hot water system Solar photovoltaic (PV) system

15 Solar energy technologies Horizontal axis wind turbine Vertical axis wind turbine

16 Profile of the Caribbean hotel industry Includes hotels, integrated resorts, villas, rental apartments Ranges from properties < 10 rooms to mega-resort complexes > 1,000 rooms Owner, operated; locally and foreign owned; hotel chains; government-owned Licensed and unlicensed by national tourism authorities Members and non-members of national and regional hotel associations All have similar energy end-use needs (e.g., lighting, airconditioning, etc.)

17 Profile of the Caribbean hotel industry Country/Territory Hotel Properties Hotel Rooms Average Hotel Size Anguilla Antigua / Barbuda 60 4, Aruba 36 7, Bahamas , Barbados 73 5, Bermuda 29 2, British Virgin Islands 34 1, Cayman Islands 82 4, Cuba , Dominica Dominican Republic , Grenada 55 1, Guadeloupe , Haiti 41 1, Jamaica , Martinique 76 5, Montserrat Netherlands Antilles 118 9, Puerto Rico , St Kitts / Nevis 31 1, St Lucia 71 4, St Vincent / the Grenadines 48 1, Turks / Caicos Islands 43 3, US Virgin Islands 101 5, TOTAL 2, ,

18 Average hotel electricity prices (US$/kWh) US average = 0.12 $/kwh

19 Average fuel adjustment (US$/kWh) Oil-fired generation dominates the region s utilities Anguilla Antigua Aruba Bahamas (1) Bahamas (2) Barbados Belize Cayman Curacao Dominica Grenada Jamaica St Vincent St. Lucia Suriname Trinidad

20 Annual Electricity Use by Hotel Size (in GWh) Electricity consumption in Caribbean hotels 1,300 1,200 1,100 1, > < =50 Caribbean hotels consume an estimated 5,660 GWH electricity annually

21 Annual Electricity Use by Hotels < 120 rooms (in 1,000 MWh) Electricity use in hotels less than 120 rooms to to to 39 <

22 CO 2 Emissions (in 1,000 tons) CO 2 emissions from Caribbean hotels Hotel electricity consumption results in 4.23 million tons of CO 2 emissions annually

23 Energy efficiency investment potential Energy Conservation Measure Electricity Saving (kwh) Electricity Cost Saving (US$) Investment Required (US$) Lighting 209,319,375 52,329, ,982,404 Building Envelope and Air Conditioning 930,788, ,697, ,831,255 Guestroom Equipment 45,037,289 11,259,322 14,746,128 Office Equipment 46,875,534 11,718,883 12,635,980 Kitchen Equipment 48,471,358 12,117,840 27,111,185 Pool Pumps 75,861,861 18,965,465 39,195,295 TOTAL 1,356,354, ,088, ,502,247

24 CO2 Emissions Offset (in 1,000 tons) CO 2 emissions reduction potential million ton CO2 emissions can be avoided through EE actions

25 CO 2 Emissions Factors CO 2 emission estimates Pre EE improvement initiative based on average emissions intensity of total electric sector generation for specified countries or country-based regions and include transmission and distribution (T&D) losses incurred in delivering electricity to the point of use. CO 2 emission factors (in tco 2 /MWh) Jamaica , Cuba - 0.9, Dominican Republic , Netherlands Antilles 0.796, Trinidad & Tobago 0.755, Haiti 0.347, Other Latin America CO 2 emission estimates Post EE improvement initiative based on average emissions intensity of fossil-fired generation for specified countries or country-based regions, but do not exceed 0.9 metric tons CO 2 e per MWh. Note that the Avoided emissions benchmarks do not include (T&D) losses. CO 2 emission factors (in tco 2 /MWh) Jamaica , Cuba - 0.9, Dominican Republic , Netherlands Antilles 0.796, Trinidad & Tobago 0.755, Haiti 0.72, Other Latin America Source: Voluntary Reporting of Greenhouse Gases. U.S. Department of Energy, Energy Information Administration. Form EIA-1605 (2007).

26 Diesel/HFO Saving in Kiloliter Diesel/heavy fuel oil savings potential 1,000, ,000 10,000 1, Annually 590,885 kiloliters Diesel/HFO can be saved as a result of EE improvements

27 Capitalizing on EE in the Hotel Sector EE action for hotels in 25 Caribbean states - Pick the low hanging fruits 25% of total hotels are properties with 120 rooms or more Accounting for ~75% rooms & electricity use Total electricity use in the hotel sector is 4638 GWh Only six countries/territories account for ~73% of the total electricity use 4.23 million tons of CO 2 emitted annually Suite of EE measures in hotels can reduce CO 2 emissions by 1.9 million tons annually.

28 Issues influencing hotel investment in EE Overall hotel financial performance and indebtedness Access to attractive long term financing Preference for top line investment in expansions and refurbishments Lower first cost vs ROI or life-cycle costs Uncertainty of EE technology/system performance Availability of products and service providers Technical capability of in-house staff and familiarity with new technologies Reluctance to include maintenance services in contract

29 Barbados case study Barbados facts: Land area = 456 km3 Population = 279, hotel properties 814 villas, 120 apartments, 28 guest houses 5,500 total hotel rooms 2,340 villa rooms, 1,526 apartment rooms, 169 guest house rooms Annual stay-over visitors = 550,000+

30 Barbados case study 65 detailed and walk-through audits Distributed, grid-connected PV pilot demonstration Assessment of existing financing sources Hotel clean energy policy and action plan Assist audited hotels apply to Smart Energy Fund Caribbean hotel EE CDM program of activitiies Impact of hotel EE on oil imports, CO2 emissions and utility sales

31 Barbados hotel size distribution

32 Energy use in Barbados hotel sector Total electricity consumption in the island was 952 gigawatt-hours (GWh) in The 84 Hotels and Guest Houses accounted approximately for 89 GWh, or 9% of total electricity sales. The average electricity tariff paid by hotels to the power utility (Barbados Light and Power Co) lies between 0.25 to 0.27 US$/kWh depending on the rate (voltage) class. Natural gas consumption in the hotels could represent approximately between 16% to 20% of the electricity consumption (or 14% to 17% of total energy consumption) Electricity Consumption of the Barbados Hotel Sector 91% Hotel Sector 9% Other sectors

33 US$/Year Electricity expenditure for Barbados hotels $10,000,000 $1,000,000 $353,810 $548,204 $1,271,883 $100,000 $107,690 $10,000 $1,000 $100 $10 $1 <= >200 # of Guestrooms

34 kwh/room Night Electricity Use Index Hotel Size (# of Guestrooms)

35 Electricity use index Barbados hoteis Hotel Size (# of Guestrooms) <= >200 High (kwh/room Night) Average (kwh/room Night) Low (kwh/room Night) # of Hotels (Sample Size)

36 % Electricity end-use Electricity end-use for Barbados hotels 100% 90% 11% 5% 4% 5% 5% 7% 5% 5% 22% 80% 12% 11% 6% 70% 60% 50% 8% 7% 4% 15% 7% 7% 15% 2% 5% 9% Miscellaneous Pool Pumps Laundry Hot Water General Equipment 40% 13% 12% Kitchen Equipment Refrigeration Equipment 30% 60% Guest Rooms 52% Lighting 20% 36% 33% Air Conditioning 10% 0% <= >200 Hotel size (# of Guestrooms)

37 Overall Electricity Consumption by End-Use General Laundry, 0.7% Equipment, 4.0% Guestroom Equipment, 6.7% Other, 0.7% Hot Water, 9.1% Kitchen & Refrigeration Equipment, 9.2% Air Conditioning, 44.3% Pool Pumps, 12.4% Lighting, 12.8%

38 Electricity saving (%) Electricity saving through EE implementation 60% 50% 40% 30% 20% 10% 0% <= >400 Hotel size (# of Guestrooms) Based on detailed audits completed for hotels in Barbados

39 Sample detailed audit recommendations Energy Saving Opportunity Description Initial Cost ($US) Annual Cost Savings ($US) Payback Period (years) Annual Energy Savings (kwh) CO2 Saved (Tons/yr) Clean coils on fridges and freezers $ $ 1, , Turn off pool's Jacuzzi pump at night $ $ 1, , Install occupancy sensors in bathroom $ 14, $ 3, , Properly insulate refrigerant-carrying copper lines on 30 units $ 1, $ , Replace guest room Mini Split condensers with a VRV system for cheaper cooling and free hot water $177, $ 62, , Replace Photocells with timers to save a half hour of lighting power daily $ $ , Retrofit Incandescent and Halogen bulbs to CFL's and LED lights $ 18, $ 55, , Install Variable Frequency drives on the pool pumps $ 10, $ 6, , Implement Corporate Utility Management Program $ 12, $ 5, , Install guest room controls $ 48, $ 15, , Install an occupancy sensor in the Main Restaurant $ $ , Tint windows in guest rooms $ 22, $ 5, , Replace 7.5 ton Packaged unit at Staff Quarters with a VRV system producing hot water for staff kitchen $ 12, $ 1, ,

40 Sample energy audit findings 236 rooms, 23,673 m3 of serviced area 2009 occupancy = 54.4% Energy use index = 127 kwh/gn, water = 1.87 m3/gn Audit report recommended six (6) projects: Initial capital cost of US$ 1,358,465 Total annual savings of US$ 589,592, 57% of total annual electrical energy cost. Simple payback period = 2.3 years Internal Rate of Return - 37% over a seven year period Estimated 5 year savings = US$ 2,947,960 Value of detected water leaks equals US$470,000 per year

41 Impacts from hotel energy efficient savings Equivalent Barrels of oils saved in electricity generation: 49,200 Barrels per year Potential reduction of Greenhouse Gas emission: 28,600 CO 2 tons per year Financial impact for the power utility (BLPC) US$ 8.2 Million reduced revenue per year as result of reduced sales Fiscal impact for the government (without including grants) Reduction of US$ 3,7 Million per year in the annual imports exports deficit due to fewer oil imports.

42 Barbados hotel clean energy policy framework The goal of the Barbados Hotel Clean Energy policy is to improve the competitiveness and viability of the Barbados hotel sector through increased energy efficiency and low carbon economic development. Objectives: Reduce GHG emissions associated with hotel operations reduction in CO2e associated with reduced energy (electricity and gas) use calculated based on the difference from business as usual (without policy). Increase investment in cost-effective and proven energy efficiency and renewable energy technologies spending on green hotel design, efficient a/c, refrigeration, water heating, appliances, lighting, solar hot water, PV. Data collected from investment tax incentive filings. Improve the energy intensity of Barbados hotels (kwh per guest night) reduced kwhe per guest night for participating hotels calculated from baseline (prior 24 months) Demonstrate and recognize the leadership of the hotel sector within Barbados (as model for other sectors) and within the Caribbean (as a model for the tourism sector),

43 Expected impacts of clean energy policy Growth in the Barbados clean energy industry (consultants, engineering companies, equipment suppliers/distributors, service providers) tax revenue, employment Reduced operating costs for Barbados hotels - expenditures on electricity, gas and water Improved balance of trade for Barbados through reduced imported energy resources expenditures on oil imports Programmatic approach to reducing GHG emissions as a possible example for other sectors in meeting national commitments Greater awareness of and appreciation for energy efficiency and renewable energy among hotel workers and the general public that can be employed in their homes

44 Hotel clean energy policy scope Physical plan for hotel development and associated infrastructure Energy efficiency building codes for new hotels and rehabilitations Tax incentives for purchase of EE and RE products and services Energy efficient labeling for hotel equipment Hotel sustainability rating system (using EE and water use index) Training programs for hotel management and staff Utility feed-in tariffs for hotel RE installations Financing for studies and investments in EE and RE

45 Barbados hotel clean energy policy framework Barbados Tourism Master Plan ( ) environmentally-sound sound tourism policies, strategies, projects and programs Tourism Development Act (2002) investment incentives Barbados Sustainable Energy Policy Framework energy diversification, increased use of renewable energy and EE Building Codes guidelines for new commercial busines Renewable Energy System Inter-Connection and Feed-in Tariffs with Barbados Light and Power pilot for < 50kW solar and wind Energy Efficiency Retrofit and Renewable Energy Finance Facility Hospitality Training Hospitality Institute operates PomMarine Hotel Sustainable Economic Development Policy - "Greening" the economy GHG abatement under UNFCC National Communication

46 Energy efficiency value chain - traditional Traditional approach 1. Best practices (no-cost measures) 2. Distribution (limited) 3. Procurement (locally available) 4. Installation (remove and replace) Savings: 5-15%

47 Energy efficiency value chain - traditional Proposed approach 1. Best practices (no-cost measures) 2. Studies (audits, feasibility studies) 3. Financing 4. Distribution (enhanced) 5. Procurement (EE rating) 6. Installation (trained, outsourced) 7. Operation and maintenance 8. Monitoring 9. Revenue from CERs Savings: 35-50%

48 Integrated Value Chain Model - Carbon Trust Near term advice on EE/RE technologies and loan program to businesses to adopt clean technologies, Long term venture capital support to emerging technologies (or bringing together ventures that will develop these technologies). Carbon Trust accredits consultants (auditors) who conduct free assessments. This becomes the basis of the loan application. Carbon Trust partners must meet the Carbon Trust Standard, and can use their label in marketing. Loan term = project payback period, $0 down, 0% interest.

49 Questions and follow-up information Thank you!!! Caribbean Hotel Energy Efficiency Action (CHENACT) Bill Meade - bill.meade@tetratech.com Loreto Duffy Mayers CHENACTProject@gmail.com