1. Loreto Duffy-Mayers CHENACT IRENA Martinique

2. Objective of CHENACT Caribbean Hotel Energy Efficiency and Renewable Energy Action To improve the competitiveness of small and medium sized hotels (<400 rooms) in the Caribbean Region through improved use of energy with the emphasis on Renewable Energy and Micro-Generation It is funded in the main by IDB and EU and supported by the Governments of Barbados, Jamaica and Bahamas. It is jointly managed by the CHTA and the CTO

3. CHENACT Case Study 31 detailed energy audits, 30 walk through energy assessments (64% of all licensed hotels in Barbados), Currently re-auditing 15 and 15 new ones 40 audits in hotels in Jamaica and 40 in Bahamas Electricity efficiency index for ( 200 room hotels) Estimates of total electricity consumption and carbon footprint of Barbados, Bahamas and Jamaica hotel sector Assessment of financing sources for hotel energy investment, including input to Barbados SMART Energy Fund design and replication Inventory of current refrigerant use in air conditioning and refrigeration equipment in the hotel sector Hotel Clean Energy Policy in Barbados, Bahamas and Jamaica 3 PV demonstration Projects operating in 3 hotels in Barbados. 3 more on course Analysis of Energy Performance Contracting for Caribbean Hotel Sector Caribbean Regional Hotel CDM Program of Activity (PoA)

4. Page 4 Overview of the Caribbean Hotel Sector 2,269 hotels in 25 countries/territories comprising 241,000 guestrooms

5. Page 5 Hotel Sector Electricity Cost Share of GDP in the Caribbean Hotel expenditures on electricity can represent more than 2% of total national GDP in smaller countries.

6. Page 6 Annual CO 2 e Emissions Reduction – Caribbean Region Hotel Sector 884 thousand tons CO 2 e emissions can be avoided annually through EE actions

7. Page 7 Diesel/Heavy Fuel Oil Saved Annually 267,970 kiloliters Diesel/HFO can be saved as a result of EE and RE improvements in hotels across the Caribbean region

8. Page 8 Caribbean is an attractive market for a number of EE/RE measures Equipment Electricity Saving (GWh) Cost Saved (US$ - Million) Investment (US$ - Million)Payback Period Air Conditioning 432 134 220 1.6 Lighting 106 31 21 0.7 Controls 97 31 49 1.6 Solar Hot Water 60 10 1.0 Window Film 45 12 22 1.9 Solar PV 45 13 46 3.6 Pool Pumps 25 7 4 0.6 Water pumps 10 3 1 0.5 Exhaust Fan 4 1 2 1.4 Total 824 241 375 1.6 Assumes US$0.40 per kWh electricity tariff.

9. Page 9 Summary of Energy Saving opportunities in 96 room all-inclusive hotel Based on the detailed energy audit the hotel could invest US$411,452 in selected energy savings opportunities. The investment is estimated to yield US$148,068 in annual energy savings, with a combined payback period of 2.78 years. The combined savings would result in a 31% reduction in total energy use and corresponding greenhouse gas emissions. Recommended Projects Investment Cost (US$) Annual Savings (US$) Payback Period (Years) kWh SavedCO 2 Emissions Pumps$4,661$7,7700.635,12526.34 Controls$63,376$20,1683.1476,70157.53 VRV and Tint$226,977$70,4143.22239,587179.69 Retrofit indoor Lights$21,467$27,3140.79123,47392.6 Retrofit outdoor lights & PV system$94,971$22,4034.24101,27275.95 Total$411,452$148,0682.78576,158432.12

10. Page 10 Solutions : Energy Service Companies (ESCOs) Shared savings contract - ESCO guarantees the cost of energy saved; the cost savings are split for a pre-determined length of time in accordance with a pre-arranged percentage. ESCO assumes the credit and performance risk. Guaranteed savings contract - ESCO guarantees a certain level of energy savings; the performance guarantee is the level of energy saved. The client assumes the credit risk, while the ESCO assumes the risk for the savings. Power Purchase Agreement – a contract between the power/energy producer and the consumer, and single cost for customer based on an easy to meter output, e.g., kilowatt hour or kWh. PPA provider would secure funding for the project, maintain and monitor the energy production. Lease (or lease-purchase) agreement - the consumer agrees to make a fixed payment to the ESCO for a fixed term. In addition to designing, operating, and maintaining the improvements, the ESCO guarantees that energy and maintenance savings from the project will exceed the payments to the ESCO. The net effect is similar to that under a shared savings agreement. Four different contract types are used with ESCOs:

11. Page 11 Adopting Performance Contracting Principals in Caribbean Hotel Sector Prospects for ESCOs,- Elements of performance based service which can be introduced: Encourage the bundling of energy services including EE and RE, moving toward turnkey projects, e.g., studies, engineering design, procurement, installation, commissioning, operation and maintenance, and performance monitoring. Compile and disseminate information on EE and RE equipment performance in hotel applications and analyze expected vs. actual performance. Develop standardized “baseline” calculation methodologies to reflect historical energy consumption and variations in occupancy (also relevant for CDM) Develop standardize contracts for energy performance contracts for hotel applications Provide government guarantees for investments in selected equipment retrofits/replacements. Encourage electric utilities to set up unregulated affiliates to offer performance based services to their customers, including EE and RE systems.

12. Page 12 Hotel Energy Efficiency CDM Program of Activities Recommended technologies and services be included in the Hotel CDM PoA: Air conditioning retrofit - inverter type variable refrigerant volume mini-splits Guestroom energy controls – occupancy sensors, programmable thermostats Public area lighting controls – occupancy sensors Individual lamp replacement – compact fluorescent lamps (CFL) and Light Emitting Diode (LED) lamps Fluorescent tube lamps – T8 tube lamps with electronic ballasts and LEDs Solar hot water (SHW) heating systems Small RE systems, i.e. PV, wind etc Energy efficient freezers, refrigerators, cool rooms Guest room energy efficient mini-fridges, televisions Office and guestroom equipment – televisions, computer monitors Timers on pumps and motors Photo-sensors and timers for outdoor lighting Energy Management Systems AMS-II Energy Efficiency and Fuel Switching for Buildings methodology allows for a combination of energy efficiency technologies, including SHW

13. Page 13 Summary of Impact of CHENACT Recommendations Barbados Hotel Sector 96 hotels and 6,114 hotel rooms $16 million total investment in energy efficiency $10 million annual savings 27 million kWh total annual savings 18,800 tons CO 2 e reduced annually 6,891kiloliters of diesel/HFO in reduced imports annually Caribbean Region Hotel Sector 2,269 hotels; 241,058 hotel rooms $433 million total investment in energy efficiency $271 million annual savings 1,050 million kWh annual savings 835,000 tons CO 2 e reduced annually 267,970 kiloliters of diesel/HFO in reduced imports annually

14. Page 14 TOURISM IMPACTS Marketing Value of EE, RE, WE, and PoA to the Tourism sector in the region Hotels are under pressure from the European, UK and Canadian Tour Operators Only Tourism region in the world which has a project of this scale The PoA will not only reduce our Carbon Footprint but will lead to NAMAs and Climate funding.

15. Page 15 Loreto Duffy-Mayers Regional Programme Manager CHENACT Tel: (246) 5719602 E-mail: chenactproject@gmail.com