5. lieven vanstraelen dsm - demand-side management

Grazer Energieagentur GmbH Task XVI: Proposal for Extension of Task Work Plan to ExCo. South Korea, November 3rd 2011 1

Task XVI

”Competitive

Energy Services”

www.ieadsm.org

IEAIEA--DSM, Task XVI:DSM, Task XVI:

““Energy Efficiency and Energy Efficiency and

Demand Response ServicesDemand Response Services””

Presentation at IA Day

Dec. 6th 2011, Brussels

Lieven VanstraelenEnergInvest/Fedesco Knowledge Center Expert

Belgium


Background and Motivation

� Worldwide , concrete energy saving targets have been declared. But what are the appropriate instruments to bring energy efficiency and demand response to the end-users?

� Now and for the foreseeable future there is an urgent need to conclude and support all suitable political, regulatory and market based instruments for the implementation of Energy Efficiency, Demand Response and Renewables .

Task XVI extension wants to contribute by further developing innovative Energy-Contracting (ESCo) tools, project s and markets .


Participating Countries, Experts and Contacts

1. Austria: Jan W. Bleyl (Operating Agent), Daniel Schinnerl (Grazer EA)

2. Belgium: Lieven Vanstraelen (EnergInvest, Fedesco KC, BELESCO), Johan Coolen (Factor4, Fedesco KC)

3. Germany: RWE

4. India: Ramaswamy Srinivasan (Bureau of Energy Efficiency)

5. Netherlands: Ger Kempen (Essent)

6. Spain: Andrés Sainz Arroyo (Red Electrica), Ana Fernandez (Hitachi), Borja Herrero (Hitachi)


Overall Objectives of Task XVI (Extension)

1. Continue the IEA DSM Energy Services Expert Platform

2. Support and follow up country specific national implementation activities in order to foster ESCo market development

3. Design, elaborate and test innovative Energy-Contracting and financing models and publish them

4. Elaborate and assess business models for Demand Response energy services

5. Use the expert platform as a competence centre for energy and demand response services for international and national dissemination and assistance services (e.g. coaching, training courses, publications) in the field of Energy-Contracting and to contribute to an “IEA DSM Centre of Excellence”


Some Task XVI Outputs for Stakeholders

1. How to communicate Energy Efficiency and Energy Contracting?

2. Financing options for ESCo projects

3. New ESCO models for Comprehensive refurbishment of buildings

4. Manual for Procurement of ESCo projects

IEA DSM Task XVI: Structure and Subtasks

IEA DSM Energy Services Expert PlatformKick off +

Stakeholder WS

ES Expert PlatformFinal meeting

+ Stakeholder WS

ES Expert PlatformRegular meetings

+ WS’s

Think Tank(Innov. models)

• Standard contracts and procedures

•Market/project facilitators

•Outsourcing vs. “in-house”

•…

Dissemination

• Stakeholder workshops

• Presentations & conferences

• Publications, manuals

• Coop.& project coaching

• …

NationalImplementat.Activities

•Market development

•National target groups

•Capacity building

•Model projects

•…

(NE’s decide)

DR-Services

•Market analyses

•Capacity markets

•DR solutions

•Business cases


IEA-DSM Energy Services Expert Platform (Subtask 13)

� Presentation of national implementation activities progress and problems, coaching and feedback, exchange of information (NE’s)

� Internal Workshops : Presentations and discussion of results from Demand Response business models (OA+NE’s)

� Internal Workshops : Presentations and discussion of results from think tank (OA)

� Stakeholder Workshops : Discussion of relevant Energy-Contracting topics and presentation of results of Task XVI (Host NE with OA)

� Mutual assistance and coaching for all stages of project development and implementation (OA, NE)

� Networking : Information and communication activities, contacts to interested par-ties, participation in workshops (OA, NE)


New Think Tank Topics (Subtask 14)

The preliminary selection of Think Tank topics are:

� Instruments for developing the market : Simplified and standardized contracts, procedures and products, communicating with customers …

� The role of independent program and project facilitators for project and market development

� Outsourcing versus standard in-house implementation : Why should a potential ESCo customer start outsourcing and buying integrated ser-vices and let go of standard in-house implementation (procuring se-parate planning services, equipment, operation&maintenance … )?

� Comparison and further development of ESCo business models: ESC, EPC, IEC …

Final selection and shaping by national experts.


Demand Response Energy Services Business Models (Subtask 15)

Activities:

1. (Potential) customer market analyses : Identification of suitable electricity customers and DR-potentials in industry and other large customers in the commerce and tertiary sector (based on existingnational and international studies)

2. Balancing power/capacity markets : Analyses of existing markets and products and their regulatory environment as well as measurement and verification issues

3. Technical DR-solutions : Availability, feasibility and standard calculation/cost

4. Preparation of DR business cases for potential market players with a particular focus on ESCos based on the previous three tasks

Since demand response services may not be on the agenda of every participating country, the participation in this subtask is not mandatory.


Coaching of National Implementation Activites (Subtask 16)

The design of the national activities will vary, depending on the country specific market situation for energy efficiency (from “reinforcing the basics, capacity building to specific market segment development activities and model projects).

Activities:

1. Organisation and management of NIA sessions and rep orting (OA)

2. Provision of templates and tools for NIA reporting and follow up (OA)

3. National implementation activities (NE’s)

4. Coaching and input for NIA’s (OA)

Already ongoing national activities can be integrated into this national work package.


Dissemination (Subtask 17)

Activities:

� Minimum of three Task XVI international presentations per year on innovative Energy-Contracting issues (OA)

� Minimum of three publications of Task XVI results in relevant conferences, proceedings, journals or book contributions (OA)

� Six national stakeholder workshops : Discussion of relevant Energy-Contracting topics and presentation of results of Task XVI (Host national expert with OA)

� Initiating joint projects and services with international organisations and further IEA and non IEA countries (OA)

� Offering assistance and coaching for project development and implementation as well as expertise for seminars and workshops organised by other actors (OA)

� IEA DSM Spotlight, annual report …


Reasons to continue Task XVI

� Task XVI Energy Services Expert Platform has worked successfully over the last six years . It will continue to serve the national experts exchange and networking, to support national implementation activities and communication with their stakeholders and to provide access to innovative and competitive Energy service models and tools from the Think Tank.

� A new topic will be demand response services as a possible answer to cope with an increasing demand for network capacity services induced by the increasing integration of fluctuating renewable supply sources. We will investigate, if DR services can be implemented through ESCos and create an additional income stream in their projects.


Reasons to continue Task XVI (cont’d)

� Further research is needed in a number fields on the way to more competitive energy service products and market development (c.f. Think Tank description (subtask 14)).

� Task XVI has received considerable interest in its previous work , expressed in a wide variety of invitations to conferences, workshops to more than fifteen IEA as well as non IEA countries. Also the task work itself benefits from feedback on its publications. This international and national dissemination activity of IEA DSM work sho uld be taken further and will also enhance the visibility of the IEA DSM programme as a whole.


Expectations and Results

� Know-how and capacity building on innovative and competitive Energy-Contracting and financing models and support tools from the Think Tank

� Mutual feedback, coaching and experience exchange for country spe-cific market development activities (NIA’s)

� Developing and assessing business models for Demand Response energy services

� Enlarging national and international markets for ES Co and demandresponse services and developing business opportunities for nationally and internationally acting ESCOs

Last but not least networking with innovative ESCo market players may be considered as an added value.

Task XVI Extension Schedule

The Task XVI extension is planned for a period of 3 years starting in July 2012 and ending in June 2015.

end of current Task XVI ��Task XVI-extension2012

Task XVI Subtasks Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

13 IEA DSM Energy Services Expert PlatformExpert Meetings + Stakeholder Workshops

14 Think Tank (Innovative Models + Support Tools)

Publications / Manuals / Tools15 Demand Response Business Models

Publications16 National Implementation Activities17 Dissemination18 Management & Reporting

Task XVI Meeting and Stakeholder Workshop

Main Think Tank and Demand Response publications

ExCo Meeting

ExCo reporting: PMD, annual and EoT

2013 2014 2015

Grazer Energieagentur GmbH Task XVI Status Report to ExCo. South Korea, November 3rd 2011 16

Cost Sharing Budget (in Euro, netto, based on 5 participants)

Subtasks Days Cost [€]

Personal cost:

13 IEA DSM Energy Services Expert Platform 48 38.400

14 Energy Services Think Tank 70 56.000

15 Demand Response ES Business Plans 45 36.000

16 Coaching of National Implementation Activities 15 12.000

17 Dissemination 40 32.000

18 Management & Reporting 60 48.000

Personal cost subtotal: 278 222.400

Travel: 28.000

Other cost (meetings, printing …): 9.000

Total Cost (for 3 yrs): 259.400


Cost Sharing of Task XVI Extension

# of Countries Participating

Country contributions per year (over 3 yrs) 5 6

Each country participating (including OA) 15.000 €/a 13.750 €/a

Add. contribution from OA 34.400 € 11.900 €/a

� With every additional country , the cost share for each partner is further

reduced by 750,-€/year.

� The additional resources available with more participants will, in accordance with the countries participating, be used for additional information activities, further elaborations in the think tank and for the higher expenses of managing the task.


Task Sharing of Task XVI Extension

Each country will be required to:

� to provide expert time of approx. 1-2 person-months a year

� to attend six meetings/workshops of the ES-platform and prepare for it

� to host 1 meeting/workshop during the lifetime of the task-extension,

� to carry out its national implementing activities and

� to carry out demand response research activities (if participating in subtask 15).

Participation may involve funding already allocated to other nati onal activities , which falls substantially within the scope of work to be performed under this Task.


Belgium: Task Financing & Extension

Currently (2009-2012)� Year 1 = FOD Economie (15 k€)

� Year 2 & 3: Fedesco (24 k€ + participation & travel costs)+ BELESCO (6 k€ )

Task Extension (2012-2015)� No financing yet !

� Fedesco, EnergInvest & Factor4 have confirmed there strong interest to continue to represent Belgium, but are interested to have other organizations join

� This Task is a key contribution to the development of the Belgian (and Flemish, Walloon and Brussels) ESCO and EPC markets)

� But we need to raise between 50 k€ en 75 k€


Task XVI

”Competitive

Energy Services”

www.ieadsm.org

Thank you Thank you

for your support and for your support and

of IEA DSM Task XVI!of IEA DSM Task XVI!

We need you….!

5. lieven vanstraelen dsm - demand-side management

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