1. IMPLEMENTATION OF ENERGY EFFICIENCY MEASURES THROUGH ESCO ROUTE ON SHARED SAVING MODEL
PRESENTED BY
AKASH JAIN
DIRECTOR
ALIEN ENERGY PVT. LTD.
PRANAT ENGINEERS PVT LTD

2. ALIEN ENERGY RDD CENTRE

3. Research Development & Designing Centre
Having Built-up area of 6000 sq. ft.
Building having North East Facing (Vastu compliance).
Building is designed as per SAVGRIHA / BEE 5 star rating.
Having provision of using maximum natural light and minimum artificial light.
Doubled Glaze glass helps to reduce the heat Loss inside the office.
Eco friendly products are used inside the building
Energy efficient lighting system and BEE 5 star Air-conditioning units are used in the centre.
Insulation has been used in wall and ceiling to transfer the heat

5. Profile of ALIEN GROUP OF COMPANIES (AGC)……
BEE GRADE 1 ESCO Company
Alien Energy is on the panel of BEE/EESL/PCRA/PFC/HAREDA/GEDA /NDPL/MPUVNL/IREDA/MEDA
AGC has conducted a large no. of energy audits in Industries, Municipal corporations & Building in India.
More than a decade successfully develops, executes and finances ESCO projects
AGC have executed more than 100 ESCO projects in the facilities across India.
Alien Energy LED products are approved by UPPWD-U.P., NEDCAP-A.P., HAREDA-HUDA, NDMC, EESL, etc.
All Products Compliance with Indian & International standards and as per GRIHA, LEED & ISI Standards
AGC has a large number of BEE certified auditors and technical experts for Energy Audits.

6. What is ESCO?
“An Energy Service Company (ESCO), or Energy Services Provider (ESP) is a business that develops, installs, and finances projects designed to improve the energy efficiency and maintenance costs for facilities. The ESCO acts as project developer for a wide range of tasks and assumes the technical and performance risk associated with the project.”

7. ESCO Activities
Energy services include a wide range if activities, such as:
Energy analysis and audits
Energy Management
Project design and implementation
Maintenance and operation
Monitoring and evaluation of savings
Energy and/or equipment supply

8. There is an aggregate investment potential of $ 9
There is an aggregate investment potential of $ 9.8 billion for energy savings in buildings
(WRI estimates)
There is a potential for 30% demand reduction through energy efficiency in buildings, appliances and lighting.
(Mckinsey’s Analysis)
The real question is how we can achieve energy saving of these estimates
….??

9. BEE’s Star Rating for Commercial Buildings
BEE STAR rated qualified products and practices help you to save money and reduce greenhouse gas emissions by meeting strict energy efficiency guidelines set by the U.S. EPA and U.S. DOE. The ENERGY STAR label also designates superior energy performance in buildings.
While any of Pranat’s energy audit and implementation can help you to achieve greater degrees of comfort and energy savings, the ENERGY STAR label is a permanent, recognized certification of energy efficiency in Office, Hotels, Hospital buildings.
Pranat can help you to make you facility energy star and in upgrade of star rating.
EPI = kwh/sqm/year
Climate Zone
1 Star
2 Star
3 Star
4 Star
5 Star
More than 50% air conditioned built up area
Composite
Below 90
Warm and Humid
Below 100
Hot and Dry
Below 80
Less than 50% air conditioned built up area
70 -60
60 -50
Below 40
Below 45
Below 35

10. Situation of ESCO business
Situation 5 years ago:
Clients without budget/funds
Clients without the know-how
Power tariff was low
What changed today:
Clients still without budget/funds
Clients better informed about energy efficiency
Power tariff has increased by 50%
Clients are interested to execute project through ESCO route on shared savings/or direct

11. Barriers in ESCO business
Three main barriers recognized by WB during the preparation phase of the EE Project :
Lack of capacity and know-how
Lack of development and project financing
Lack of consumer demand
Financing problems
Banks do not recognize ESCO projects
Project financing is not popular for ESCO business
Collateral is still a big problem

12. Guaranteed Saving Contract Shared Saving Contract
ESCO CONTRACT
Guaranteed Saving Contract
Shared Saving Contract

13. Guaranteed Saving Contract…..
Client
ESCO
Energy saving guarantee agreement
Loan
Repayment of loan
Fees for services
CREDIT RISK
Design and Performance risk
Financial Institution
On the other hand in Guaranteed saving contract, while still the ESCO carries the commercial success risk of the energy saving project, he at-least is free from the credit risk. The Client carries the credit risk. However, the client is insulated from the fact that he has a promise from the ESCO that all the credit risk as well as payments to be made to the ESCO would be made up from the energy saving project installation and he need not look for raising the money for repayments. The client has acquired a bank guarantee from the ESCO to cover the risks of energy saving projects. The ESCO is happy that he had taken only the commercial success risk in which he is confident. He is also aware of the amount of risk. The Financial Institution is also happy to lend to an client with fixed assets and also an assured promise of energy savings made by ESCO. FIs due diligence would be simplified to the level of assessing clients and not getting into the nity gritty of the energy saving projects.
Services:
Design
Detailed engineering
Specifications
Procurement assistance
Construction supervision or construction
Maintenance
Performance guarantee 13

14. Shared Saving Contract…..
ESCO
Energy Performance Contract
Loan
Repayment of Loan
CREDIT RISK
Financial Institution
CLIENT
Installments
On the other hand in Guaranteed saving contract, while still the ESCO carries the commercial success risk of the energy saving project, he at-least is free from the credit risk. The Client carries the credit risk. However, the client is insulated from the fact that he has a promise from the ESCO that all the credit risk as well as payments to be made to the ESCO would be made up from the energy saving project installation and he need not look for raising the money for repayments. The client has acquired a bank guarantee from the ESCO to cover the risks of energy saving projects. The ESCO is happy that he had taken only the commercial success risk in which he is confident. He is also aware of the amount of risk. The Financial Institution is also happy to lend to an client with fixed assets and also an assured promise of energy savings made by ESCO. FIs due diligence would be simplified to the level of assessing clients and not getting into the nity gritty of the energy saving projects.
EPC Services
Financing
Design
Construction
Operation
Maintenance
Saving Guarantee 14

15. Ways for implementing ESCO
Shared-Savings Model

16. Energy Saving Performance Contract……
Payments to ESCO < Total cost savings in energy & maintenance. Total Cash flow during ESPC is (supposed to be) less than before ESPC. Owner would enjoy 100% energy saving after the contract period .

18. Case Study: NDMC Palika Kendra
It was the first ESCO project of India
It was executed in association with DSCL
Lighting was taken to achieve energy efficiency
Contract period was 4 years (2000 – 2004)
All the conventional lights were replaced by ALIEN efficient lights
Energy saving achieved – more than 44 %

19. Star Up gradation Of NITI AAYOG Through Alien LED…….
Before Implementation:
Energy audit conducted
Identified saving potential up to 30%
EPI was 130 kWh/sq. m/year
It was a 3 star building
Decision was taken to upgrade from 3 star to 5 star
EESL was given to upgrade the building as a pilot project to do.
After Implementation & Result:
All the lights were changed by Alien led lights
All the fan were changed by five star rated fans
Energy saver for A.C. were installed
Saving was observed more than 50%
EPI has gone down from 130 to 80 kWh/sq. m/year
Building becomes five star NOW

20. ESCO in Building At ITO Delhi..…
CLIENT : BUSINESS STANDARD
EXISTING LIGHTING
Qty.
Hrs/ Day
Days/ Year
Watt
Proposed EE Lighting
2*18W CFL Fixture 58 15
313 45
23W LED RETRO - FIXTURE 23
2*11W CFL fixture 88 35
12W LED RETRO-FIXTURE
1*18W CFL spot light 52 30
9W LED RETRO- FIXTURE 9
2*36W T-8
168 86
2*16W LED TL 36
1*36W T8 43
1*16W LED TL 18
3*11W CFL FIXTURE 65 55
20W LED RETRO-FIXTURE 20
Quantity : 476 Nos.
Load Reduction : kW
Potential Electrical Saving : kWh
Annual Monetary Saving : Rs /year
Annually Payment to ESCO: Rs
Annually Saving to CLIENT: Rs. 7970
Contract Period : 4 years

21. Successful Case Study Of ESCO….

22. BENEFITS TO OWNER TECHNOLOGY…..
Replacement of Conventional Street Lights of Sodium, Mercury & Fluorescent with New generation Energy Efficient T – 5 Fittings. Installation of GSM based dimming panels to timely Switch ON & OFF Street light and to monitor energy consumption & faulty street lights by centralized server.
BENEFITS TO OWNER
Modernization.
Zero cost of maintenance
Reduction in Electricity Bill
Earning out of energy saving & carbon credits.

23. ESCO Project In Industries…..
Scope : Replacement of all Conventional Tube Lights Copper Chokes and Starter in Existing fittings with Energy Efficient High Lumen Tube Light and Electronic Ballast.
CLIENT : OCM, AMRITSAR
Quantity : Nos.
Load Reduction : 120 kW
Energy Saving per year : Lac kWh
Monetary Saving per month : Rs Lac
Payment to ESCO : Rs. 1.3 Lac per month
Project Period : Two years
Remarks : Completed Successfully

24. ESCO Project In Industries…..
CLIENT : PANASONIC , NOIDA
Quantity : Nos.
Load Reduction : 36 kW
Energy Saving per year : Lac kWh
Monetary Saving per month : Rs Lac
Payment to ESCO : Rs Lac per month
Project Period : Two years
Remarks : Completed successfully in the year April,
CLIENT : BPL , NOIDA
Quantity : Nos.
Load Reduction : kW
Energy Saving per year : Lac kWh
Monetary Saving per month : Rs.0.43 Lac
Payment to ESCO : Rs Lac per month
Project Period : Four years
Remarks : Completed successfully in the year April,

25. BENEFITS OF ESCO…..WIN..WIN..FOR ALL
More than 60 % Energy Savings Over Existing System
Pay from reduction in energy and maintenance
Best products…..pay for performance
Modernization at zero cost
No Cap-ex/Investment/Budget !!
No Op-ex/Zero Maintenance cost
Reduction in electricity bill
No Purchase No Corruption
Better services
Warranty On Product Extended Over The ESCO Period
No Hardware Cost Over The Period Of Proposal

26. Connected Load Vs Units (KWH)
Type of Load in a Building
Connected Load
Working Days
Average working hours /Day
Units (KWH) consumed/Annum
Lighting
15 %
365
12 Hrs
20 %
Fan
9 %
270
9 Hrs
12 %
A.C
45 %
200
40 %
Pump
1 %
350
3 Hrs
UPS/Computer/Others
30 %
300
27 %

27. Energy Saving Potential/ Cost
Type of Load in a Building
Saving Potential
Cost of Energy savings/Watt
Cost of KWH
(in Rupees)
Simple Payback Period
Lighting
60 %
Rs. 50/W
50000
3 years
Fan
Rs. 30/W
30000
2 years
A.C
20 %
Rs.150/W
150000
10 years
Solar
100 %
Rs.800/W
800000
25 years
Important: Savings at Watt Cost ?

28. Energy Saving Proposal
S.No.
Existing Light
Power Consumption (in W)
Proposed Light
Energy Saving (in W)
Units (KWH) savings/Year
Annual Savings (in Rs.)
Monthly Savings (in Rs.) 1
400 W Metal Halide Street light Luminiare
450
200W LED Street Light fitting
200
250
1095
6570
548 2
250 W Sodium Vapour Street light Luminiare
280
120W LED street light fitting
120
160
700.8
4204.8
350 3
150 W Outdoor light Luminiare
170
75W LED light fitting 75 95
416.1
2496.6
208 4
70 W Lighting fixture 90
35 LED Luminiare 35 55
240.9
1445.4 5
40 W Lamp 50
18W LED Light 18 32
140.16
840.96 70 6
4 x 24W T5 Tube Light fitting
100
60W LED light fitting 60 40
175.2
1051.2 88 7
4 x 14W T5 Tube Light fitting
30W LED light fitting 30
131.4
788.4 66 8
1 x 28W T5 Tube Light fitting
18W LED light fitting 12
52.56
315.36 26
TOTAL
1230
556
674
2952.1
17713
1476
Fixture in service (Hrs/Day)
Fixture in Service (Days/year)
Power Tariff (in Rs.) 12
365 6

29. Existing ESCO proposed lighting
S.No.
Existing Light
Power Consumption (in W)
Proposed Light
Energy Saving (in W)
Monthly Savings (in Rs.)
Payment to ESCO in T5 (in Rs.) 1
250 W Sodium Vapour Street light Luminiare
280
4 x 24W T5 Tube Light fitting
120
160
361
278  2
150 W Outdoor light Luminiare
170
4 x 14W T5 Tube Light fitting
100 70
234
 180 3
40 W Lamp 50
1 x 28W T5 Tube Light fitting 30 20 54
 41

30. ESCO potential and way forward
There is a lot of potential for ESCO activity to meet the energy demand in the new economic emerging country like India
It can’t success without Strong will, hard work and Enthusiasm of the Top management of HUDA
HUDA may appoint BEE/EESL as their technical consultant for bringing energy efficiency through ESCO route
Important is to survive first year to over come initial teething problems
Need more Governance and Quick Decisions to run ESCO for the benefit of India to meet growing energy demands

31. ESCO Eligibility To work in HUDA
ESCO should be on the panel of BEE/EESL as an ESCO in Grade I or II only
ESCO should have an experience of doing at least one shared saving project in a Government sector
ESCO should have at least a turnover of Rs. 1 Cr in last three years
Should have an office in Delhi to supply and service

32. Technology To work in HUDA
The shared saving project must be in operation at least for three years
JV (Joint Venture) should not be allowed
ESCO should be bind to use only MAKE IN INDIA products
EEM’s should have simple pay back 3 to 4 years max. ESCO contract should not be more than ten years
Technology advancement is happening at very fast speed

33. Technology advancement……
LEDs
Indoor Lighting
Outdoor Lighting
Existing lighting System
Proposed

34. Measurement and Verification for Energy saving
‘OPTION A’ of IPMVP should be considered to calculate energy savings
Key parameter will be ‘W’ (Watt)/Connected Load which should be measured once yearly to calculate KW saved/reduced
Monetary saving in Rupees will be on DEEMED basis which will be calculated considering working hours, no. of days and existing power tariff for the existing and energy efficient equipments

35. Ways for implementing Energy Efficiency Measures
Direct Purchase
ESCO Model
Point Model

36. Eligibility of Direct Purchase to work in HUDA
Empanel specialized LED/Fans manufacturers having knowledge of LED lights/Fans
Empanelled firm should have executed at least three projects having value more than Rs. 30 Lac
Empanelled firm turnover should be around Rs. 10 Crore in LED lighting/Fans in the last cumulative three years
EESL has already done a lot of work in empanelment of energy efficient firms and same can be utilized/or can be modified as per HUDA norms

37. Ways for implementing Energy Efficiency Measures
ESCO MODEL
Energy Audit – Preliminary and detailed
Identification of areas of Energy Efficiency
Energy Savings proposal
Award of work to ESCO
Implementation in:
Lighting,
Fans,
A.C / Pumps / others …
Execution time: 6 months/building

38. Ways for implementing Energy Efficiency Measures
POINT MODEL
Provide inventory of In-efficient equipments
Minimum Energy savings commitment
Fixed time period of 5 years
Award of work to ESCOs/specialized firms
Implementation in:
Lighting,
Fans,
A.C / Pumps / others …
Execution time: more than 100 buildings can be executed in 6 months

39. THANK YOU