Energy Performance Contracting: One pathway to energy savings

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Energy Performance Contracting One pathway to
energy savings
Energy in WA

• Dr David Harries
• Executive Director
• Sustainable Energy Development Office

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State Sustainability Strategy

• The Government of WA is committed to embracing
  sustainability
• The underpinning concept of sustainability is
  that economic, social and environmental goals
  need to be integrated and considered together
  rather than in isolation with any one being
  dominant.
• The WA Government has recently released the WA
  State Sustainability Strategy the first
  state-based strategy of its kind.

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Climate Change

• One of todays big sustainability issues is the
  change to global climates caused by those
  pollutants referred to as greenhouse gases.
• Addressing global warming and climate change
  represents a very significant political, economic
  and environmental challenge for all nations,
  states, businesses and communities.
• The WA Governments Greenhouse Task Force will
  soon release for comment a draft WA State
  Greenhouse Strategy
• Energy use is one of the large contributors to
  greenhouse gas emissions

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The Sustainable Energy Development Office

• Established in November 2001
• Vision
• Assisting Western Australian communities,
  government agencies, businesses and industries
  shift towards a more sustainable energy future
• Objectives
• Reduced energy use by WA government agencies,
  allowing the WA Government to lead by example
• Increased uptake of sustainable energy products
  and practices by WA households
• The adoption of best practice energy management
  by WA businesses
• Growth of the WA Sustainable Energy Industry
• Increased efficiency of WAs energy supply system
• Increased reliance on renewable energy to meet
  WAs energy needs.

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Renewable energy programs

• Renewable Remote Power Generation Program
• Renewable energy water pumping subsidy
• Remote Area Power Systems (RAPS)
• Regional Power Supply
• Photovoltaic Rebate Program
• Sustainable Energy Development Office Grants
  Committee
• Solar Water Heater Subsidy Scheme
• Policy advice

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Energy Efficiency Programs

• Energy Smart Programs launched Jan 2002
• Energy Smart Community Program
• Energy Smart Government Program
• Energy Smart Business Program

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Energy Smart Business

• WAs Businesses and industries account for a very
  significant portion of total energy use in WA
• There are many reasons why businesses find it
  difficult to invest in energy efficiency.
• Other priorities
• Lack of information
• Uncertainty
• Lack of finances
• How can Government and SEDO encourage businesses
  to improve the efficiency of their energy use?
  Difficult!
• Energy performance contracting can overcome some
  of these barriers

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Energy Performance Contracting

• SEDO has been promoting EPC for several years
• - represents an opportunity to provide business
  with a complete package
• - Allows an organisation to focus on its core
  business
• - is adaptable and can be designed to suit an
  organisations needs
• Specific plant (eg. lighting or an air
  conditioning system)
• Total energy management
• Total asset management (energy, facilities and
  security)

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Energy Performance Contracting

• Benefits
• Specialist technical expertise
• Project management
• Guaranteed savings - Risk transfer
• Savings pay for capital upgrade
• Source of funds if necessary

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Energy Performance Contracting

• Uncertainties
• Lack of familiarity
• A new industry - Service provider competence
• Will the promised savings be delivered
• Lack of control what equipment/ how will it be
  installed
• Changes
• Disputes over interaction with existing
  maintenance processes
• Best Deal
• What is fair in terms of sharing the savings with
  a service
• provider

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Energy Performance Contracting

• It is not a universal solution
• Some organisations have the expertise and skills
  to undertake their own project management
• Does not suit some organisations due to their
  nature
• Can involve a significant amount of work in
  establishing the contract
• Risks
• Regulatory/pricing uncertainty electricity
  reform and restructuring of energy supply
  industry
• Future organisational restructure

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Energy Performance Contracting

• Energy Performance Contracting will have an
  important role to play
• This conference is a good opportunity
• To hear from people with firsthand experience
• Have your questions answered

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Sustainable Energy Development Office Government
of Western Australia
www.sedo.energy.wa.gov.au
SEDO Energy Smart Line 1300 658 158 Energy Smart
Directory http//www.Energy energysmartdirectory.c
om/