Controlling your Energy Costs

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Controlling your Energy Costs

• Pat Gilroy
• OSK Breakfast Seminar 12th November 2008

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Dalkia Group Background
5.6

6.9 bn


bn

bn

9.2
bn


10.9
bn

bn
54,000
72,300
72,300
80,700
80,700
70,700
70,700
38
countries
38
countries
26
countries
26
countries
60
60
35
countries
35
countries
countries
countries
Financial Data for 2007
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Dalkia Worldwide

• Now over 54,000 employees in 38 countries

41,800 employees
Europe
Asia
North America
720 employees
550 employees
Israel United Arab emirates
South America
Australia
5,400 employees
240 employees
570 employees
2006 repartition
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96,000 installations managed
Dalkia Sectors
HOUSING 5.5 million housing units
COMMERCIAL and OFFICES 89,300 facilities
INDUSTRIAL FACILITIES 3,465 facilities
HEALTHCARE 360,000 beds 4,500 facilities
SPORTS, CULTURE and LEISURE 6,600 facilities
NETWORKS 682 district and local heating and
cooling networks
EDUCATION and RESEARCH 11,600 facilities
TELECOMS 17,880 technical facilities
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Dalkia Services
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Dalkia Energy Management Overview
Separate Energy / Maintenance Management Contracts
Energy Management
OPERATION
Before
FUEL
ELECTRICITY
REPLACEMENT
WATER
REPAIR
MAINTENANCE
Integrated Energy/Maintenance Management
Agreement with Dalkia
Client Saving
After
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Contract Types

• Facilities Management
• Facilities Management / Self Deliver
• Fixed Price Output Contract
• Energy Management (Shared Savings)

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Contract Types

• Facilities Management
• Dalkia develop understanding of clients needs
  and develop a budget to deliver these needs.
• Subcontractor costs are passed through at cost
  and a management fee is applied for providing a
  managed service. Dalkia acts as facility manager
  for the client and works on the clients behalf.
• Service level agreements are put in place with
  Dalkia to manage an output from the sub
  contractors.
• Typical KPIs for Dalkia would be to provide
  monthly audit on contractors, to keep service
  schedule in place etc
• Output Service levels for contractors would be as
  on the fixed price contract.

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Contract Types

• Fixed Price - Output
• Dalkia develop understanding of Clients needs
  and provide a fixed price contract price for
  clearly defined outputs.
• E.g. Outputs can be
• Providing 21C -1C Mon Fri 8.00 to 19.00
• A clean facility at opening of business 365 days
  a year
• Provide electricity 24/7/365 and have the maximum
  import capacity available at all times
• Penalties defined for not meeting output levels

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ExampleOur Energy Expertise in Retail, Hotels
Leisure Sector
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Key Customers Worldwide

• La Part Dieu
• (France)
• Building Electricity Management
• Building Technical Management

• Printemps Haussman
• (France)
• Air conditioning
• Building Electricity Management
• Heating
• Global Building Management

• Sofitel Hotel and Residence
• (Emirats Arabes)
• Air conditioning
• Global Building Management
• Building Technical Management

• S2B CNIT-Unibail
• (France)
• Building Technical Management
• Air conditioning
• Heating

• Grand Hôtel Monte Carlo
• (Monaco)
• Heating
• Air conditioning

• Mall Plaza Los angeles
• (Chili)
• Air conditioning
• Global Building Management
• Building Technical Management

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Segment Challenges

• Retail
• Controlled operating costs per m² and
• optimised rental income
• Maintenance and management of assets (preserving
  asset value)
• Hotels, Leisure
• Optimising customer amenities (comfort, health
  and safety)

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Dalkia Response Energy Management Components

• Global Building Management
• Building Electricity Management
• Air Conditioning
• Heating
• CHP (Combined Heat Power)

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Cost for Typical Client in Hotel Sector
Separate Energy / Maintenance Management Contracts
OPERATION
Before
FUEL
ELECTRICITY
REPLACEMENT
WATER
MAINTENANCE
REPAIR
Cost for Hotel over 5 Years 5,295,027
Integrated Energy/Maintenance Management
Agreement with Dalkia
Total Savings 732,000
Client Saving
After
Cost for Hotel over 5 Years 4,563,083
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Cost Savings Summary

• 16 saving on energy maintenance costs

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Costs Summary
1,100,000
1,000,000
900,000
Maintenance costs
800,000
(Replacement repairs)
700,000
600,000
Operation cost (Labour, sub
contracts)
500,000
400,000
Raw Energy Cost
300,000
Dalkia Contract
Baseline Costs
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Our Specific CHP Offering for this Sector

• What is CHP?
• CHP Combined Heat and Power
• Makes best use of fossil or renewable fuels to
  produce both electricity and heat at the same
  time and deliver at point of use
• Single most efficient way to reduce carbon
  emissions and cut energy costs
• How Does it Work?
• Rather than wasting heat rejected by electrical
  generation process, CHP recovers most of it
• Normally in the form of hot water, which
  increases the efficiency of fuel utilisation.
• A typical unit will have a heat output of around
  1.5 times the electrical power output
• energy that would normally just escape to the
  atmosphere.
• Does it Have Any Other Benefits?
• As well as high energy efficiency and low carbon
  emissions
• Efficient energy use means lower energy costs
• Can use a wide range of conventional and green
  fuels
• The CHP units provide three-phase AC power at
  either 50 or 60 Hz depending on local
  requirements
• Electrical output is normally synchronised to
  the mains supply
• Chilled water can also be produced

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How Does CHP Work?

• A CHP plant typically consists of an engine
  driving a 3 phase electrical alternator.
• Heat exchangers recover the heat energy
• normally be lost in engine exhaust gas and
  engine cooling water
• to provide hot water.
• Makes CHP much more energy efficient than
  traditional heat and power solutions
• Double benefit of reduced operating costs and
  CO2 emissions.

energy distribution per unit quantity fuel to a
CHP versus conventional boiler and mains
supplied electricity.
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How Does CHP Work?
Energy flows from a typical CHP
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Our Specific CHP Offering for this Sector

• Units operate on a variety of fuels including
• natural gas,
• renewable biogas,
• biomass,
• bio diesel, and
• landfill gas,
• and range from 35kWe to 2MWe.
• Offer all our customers a complete package
• in-house design and development,
• assembly
• factory testing,
• commissioning,
• installation and project management,
• comprehensive maintenance,
• technical advice and support,
• remote monitoring

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Benefits of CHP

• Environment
• CO2 Emissions Reduction Targets - Greater use of
  CHP reduces CO2 emissions.
• For example.
• A Dalkia 1,000kWe unit fuelled by standard
  natural gas
• annual saving of 5,000 tonnes of CO2
• over conventional electricity generation and
  heat from gas-fired boilers.
• Legislative Climate
• Ever more energy efficient buildings, with lower
  carbon footprints
• Increasingly, internationally, to gain planning
  permission, building developments must
  demonstrate an energy efficiency increase and
  CO2 reduction.
• CHP offers immediate opportunity to mitigate
  carbon impact of any development and reduce
  energy consumption.
• Financial
• Cheaper heat and power from day one
• Amortisation of capital investment in as little
  as two years
• Using Dalkias leasing options, under specific
  criteria, it is possible simply to pay for the
  power used without making any capital investment
  and with the cost agreed in advance can be
  certain that saving money
• Feasibility studies available

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Who Should Consider Combined Heat and Power?
There are many sectors that do and would benefit
from the installation of a Combined Heat and
Power unit Leisure Industrial Local
Authority Horticulture Healthcare
Universities Retail Hotels District heating
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Who Should Consider Combined Heat and Power?

• Residential
• range from
• Medium-sized multi-occupancy developments,
• to Hotels,
• Large social housing developments or
• Universities with campus accommodation.
• Commercial and Industrial
• Office developments,
• Retail centres such as shopping malls and
  hypermarkets,
• Industrial premises and
• Manufacturing sites.
• Where there is a large amount of ambient heat
  generated by, e.g., office computers or
  manufacturing plant, trigeneration (also
  producing chilling) may be the answer.
• Public Sector
• Schools,
• Hospitals and
• Civic buildings.

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Some General Energy Saving Tips for Your
Facilities

• By working with your facilities management
  supplier to integrate an expertise in energy
  management and implement any one or more of some
  key steps, you can significantly reduce your
  current energy spend.
• For example some key steps recommended by Dalkia
  would be
• Fine tuning your building management system
• possible 10-15 savings
• Improving the installation and operation of hot
  water boiler plant
• possible 2030 savings
• Set correct operating temperatures of hot water
  distribution systems
• possible 5-10 savings
• Optimise refrigeration chiller performance
• possible 20-25 savings
• Reduce the energy consumption of your lighting
• possible 15-30 savings

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Thank you for your attention

• Pat Gilroy
• OSK Breakfast Seminar 12th November 2008

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Questions Answers