Practically Delivering Energy- Practically Delivering Energy- Reducing Reducing Technology To Optimise Technology To Optimise Efficiency On The Ground Efficiency On The Ground Andy Watson Andy Watson CEng CEng Former BAA Energy Manager Former BAA Energy Manager Sim Energy Ltd
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Practically Delivering Energy-ReducingTechnology To Optimise Efficiency On The Ground
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Cost and Space ImplicationsCost and Space Implications
As of 2001:
Annual utility spend £40 million
Total 10yr Investment: £15 million
Overall saving £6 million
SPB on investment 2.5 years
Reduce CO2 emissions from utilities by 28% on BAU projections by 2010
• Case study – Heathrow Airport
Space implicationsSpace implications
Retrofitting widgets/gadgets rather than Retrofitting widgets/gadgets rather than assetsassets
Replacement assets smaller than originalReplacement assets smaller than originalElectronics replacing mechanicsElectronics replacing mechanicsControls more reliable – less maintenanceControls more reliable – less maintenance Integrate suppliers, engineering and Integrate suppliers, engineering and
specialist contractorsspecialist contractors
The Business CaseThe Business Casefor The Energy Retrofitfor The Energy Retrofit
??????Marginal Preferable
Maximising the ReturnsMaximising the Returns(Telling the real story)(Telling the real story)
Increasing cost of utilities + inflationIncreasing cost of utilities + inflation
Comparison to other capital investmentsComparison to other capital investments
Infrastructure savingsInfrastructure savings
IRR/NPV not simple pay backIRR/NPV not simple pay back
Simple Payback
£1,000,000 investment£100,000 annual saving
SPB = 10yrsIRR = 10%
Full Financial Appraisal
£1,000,000 investment£100,000 annual saving
+ increase in utilities+ infrastructure savings over 10 yrs
PBI = 8yrsIRR = 26.5%REJE
CTED
Distribution of InvestmentDistribution of Investment
Construction88%
On-costs9%
Risk3%
Minimising the CostsMinimising the Costs
Construction
RiskOn-costs
Asset-based investmentSo lu t i on-based in ves tment
Asset-base InvestmentAsset-base Investment
Maximised opportunities AND cost efficiencyMaximised opportunities AND cost efficiency
Scale of opportunity(CO2t/an)
Mitigation cost($$$/CO2t/an)
The OutcomeThe Outcome
A series of asset-focussed sub-strategies A series of asset-focussed sub-strategies e.g.e.g.
Distribution of InvestmentDistribution of InvestmentChiller
8%Lighting
9%
Heat generation3%
H/C water distribution
21%
Baggage handling7%
Lifts, travs, escalators
13%
BMS8%
Air distribution28%
Small power3%
Costs
Chiller20%
Lighting5%
Heat generation7%
H/C w ater distribution10%
Baggage handling5%
Lifts, travs, escalators6%
BMS14%
Air distribution30%
Small power3%
Savings
The EffectsThe Effects Construction:
Discount for volumes
Space optimised
Risk:
Easier mitigation actions
Consistent suppliers – case studies
Repetitive -> reliable installation
On-costs:
Fewer projects
Quicker delivery
Implementation of the AssetImplementation of the AssetThe Maintenance Integration ProcessThe Maintenance Integration Process
Concept Options Design Delivery Operation
When?When?
Who?Who?
Performance ImprovementPerformance ImprovementYear on year performanceYear on year performanceSpecific energy measuresSpecific energy measures
By nature of businessBy nature of businessProperty – energy/mProperty – energy/m22