Energy Saving Bureau www.energiaaudit.ee Industrial energy audits in coherence with Directive on the promotion of end-use efficiency and energy services 2006/32/EC Energy Saving Bureau www.energiaaudit.ee

Directive 2006/32/EC Article 1 Purpose The purpose of this Directive is to enhance the cost-effective and efficient end-use of energy in the Member States by: - providing the necessary targets, mechanisms, incentives and institutional, financial and legal frameworks to remove existing market barriers and imperfections for the efficient end use of energy; - developing a market for energy services and for the delivery of energy efficiency programmes and other energy efficiency measures to end users.

Important definitions of the directive: (a) "Energy efficiency measures": all actions, such as energy services, energy efficiency programs and mechanisms or similar activities, initiated by any market player, including governments and authorities, that lead to verifiable and measurable improvements in end-use energy efficiency, and thus to energy end-use savings, during the period of measurement.

(c)”Energy Service": the physical amenity for energy end users derived from a combination of energy and energy using technology and, in certain cases, the operations and maintenance necessary to deliver the service (examples are indoor thermal comfort, lighting comfort, domestic hot water, refrigeration, product manufacturing, etc.) meeting quality performance requirements and improving energy efficiency, contracted for a fixed period of time and paid for directly by the customer or agent who benefits from them.

(d) "Energy efficiency mechanisms": specific measures, such as certification, regulated tariffs, taxes, subsidy schemes, funds, etc., undertaken by governments or government bodies to create a supportive framework or incentives for energy companies, energy service companies, installers or other market players to provide energy services and energy efficiency programs, not addressing end users directly.

ESCO (Energy Service Company) EPC (Energy Performance Contracting) Definitions derived from “Energy service” clause: ESCO (Energy Service Company) EPC (Energy Performance Contracting) IPMVP (Monitoring & Verification) ESG (Energy Savings Guarantee) Energy audit, infrared surveillance TPF (Third Party Financing) HVAC (Heat, Ventilation, Air-conditioning )

What is an ESCO for the industry? An ESCO is a company that fulfils all the following requirements: it provides integrated energy services to their customers (mainly large energy users, but also utilities), which may include implementing energy-efficiency projects (and also renewable energy projects), frequently on a turn-key basis. An ESCO provides performance and savings guarantees, and its remuneration is directly tied to the energy savings achieved. Therefore, an ESCO risks its payments on the performance of equipment and services implemented. Some ESCOs finance projects, recovering their investment cost from the resulting savings.

a) supply side or demand side ESCO can work on: a) supply side or demand side b) guaranteed savings or shared savings model

Typical ESCO deal has the following elements: Investment grade energy audit; Identification of possible energy saving and efficiency improving actions; Comprehensive engineering and project design and specifications; Guarantee of the results by proper contract clauses Code compliance verification and guarantee; Procurement and installation of equipment; Project management and commissioning; Facility and equipment operation & maintenance for the contract period; Purchase of fuel & electricity (to provide heat, comfort, light, etc.); Monitoring and verifications of the savings results; Project financing.

EPC (Energy Performance Contracting):

Typical energy saving potentials:

IPMVP: International Performance M&V Protocol: Framework of Options for determining and verifying savings based on widely recognized standards Risk management tool that helps allocate risks between buyer and seller of energy performance services Allows parties to create transparent, verifiable contract terms governing savings payment or settlement. Baseline data collection and verification rules Energy management monitoring rules www.ipmvp.org

TPF models:

Two types of EPC contracts:

Risks:

Infrared surveillance: Infrared surveillance camera is an useful tool for identification of heat leakages, amortized pumps, pipes etc.

Energy audit: Level 1: Walk-through audit The walk-through audit is a tour of the facility to visually evaluate the condition of each energy system. This is an initial audit that is often used to identify potential energy conservation measures (ECMs) that have would yield a high return on investment. The walk-through audit does not use the advanced system audit forms and is generally used to identify and justify further analysis.

Level 2: Standard audit The standard audit quantifies energy use and losses through a more detailed review and analysis of equipment, systems, operational characteristics, and on-site measurements and testing. Standard energy engineering calculations are used to analyze each system. The standard audit will also include an economic analysis of recommended ECMs.

Level 3: Investment grade audit Investment grade audits are often only performed once cost-effective projects have already been identified (usually in a level 1 or 2 audit). Investment grade audits are also more common in larger, more complex industries where computer simulations are required to analyze energy use.

Auditing process:

Energy auditing software: According EN 832, prEN 13790

Economy software:

HVAC solutions: automation towards intelligent buildings ERR RXB Clima RMU.. Heating RMH Room QAW Kütte RMH... Kliima RMU... RXB QAW740 + + - T

THANK YOU FOR YOUR ATTENTION! Jaan Tepp, M.Sc. www.energiaaudit.ee +372 660 6656 jaan@energiaaudit.ee