Aurora Australis Ltd

Reinhold Wieland

Financing Energy Efficiency with EnPC

Agenda

• Background to Aurora Australis Services

• Energy Performance Contracting (EnPC) overview

• Technical solutions

• How are the savings calculated?

• Solution Delivery and Decision Points

• Financial and non financial benefits

Aurora Australis Ltd

• Aurora Australis is part of a international group of companies with HQ in

Melbourne, Australia

• UK office located in Tonbridge, Kent

• Experts in real time energy management

• Energy savings through plant and equipment operational upgrades &

optimisation

EnPC overview

• Client & Aurora Australis agree outline scope and Aurora Australis undertake feasibility survey and

prepare fully cost report

• Energy Performance Contract implemented and Aurora Australis delivers infrastructure improvements,

financed from utility savings

•

With all savings guaranteed by Aurora Australis

• Aurora Australis monitor, maintain and deliver improved running costs.

• Both parties have an absolute interest to reach the optimal efficiency and performance as any excess

savings are shared. Typically shared to contract end (thereafter 100% to client)

• Preliminary estimated savings to "CLIENT" 20%-30% (subject to detailed study)

EnPC overview

EnPC Principal

EnPC Energy Solution

• Works funded completely from the

savings

• No capital outlay by "CLIENT"

• Cash flow positive from day one

• Aurora Australis guarantees savings

Aurora Australis

Third Party

Finance Vendor

EnPC Energy

Solution

Why "CLIENT" should choose this approach?

Typical External Drivers

• Energy price inflation and volatility• Stakeholder expectations• New technology and competition• Carbon Reduction requirements

Typical Internal Imperatives

• Energy reduction target• Workforce expectations• Upgrade ageing plant and infrastructure• Limited capacity to absorb price shocks

Typical Internal BarriersLimited capital for investmentUnderfunded budgets for upgradesLimited capacity available to select increasingly complex best value solutionsLimited resources for energy management and consumption control

GoalsPredictable total cost of energy servicesImproved marginsGuaranteed outcome and energy savingsOptimized controlled processes and equipment

Aurora Australis

Technical expertiseDelivery expertise

Quality & AssuranceSavings guaranteeFinance Solutions

Technical Solutions

MeteringWeb based

interactive EMS (Optergy)

Compressed Air system

Fine- tuning & ongoing

maintenance

HVAC energy efficiency upgrades

Lighting

(LED & Lighting controls)

Voltage Optimization Power Factor

Correction

Boiler upgradesWindow films and

insulationSolar PV

• Savings are assessed according to International Standard

Measurement & Verification Protocols

• Monitor building energy performance on an on-going basis – "CLIENT"

access to real time monitoring system

• Annual reconciliation between payments made and savings achieved

• Savings are backed by third party accredited insurance

How are the savings calculated?

• Payments commence one month after commissioning of the works

• "CLIENT" pay a monthly fee to AA of less than 1/12 of the guaranteed annual savings,

reconciled every 12 months

• End of year M&V reconciliation by independent third party, any outstand below paid

to AA or agreed in the contract

• At the end of the contract period "CLIENT" keeps 100% of the savings

What do "CLIENT" pay?

Client

How much did we save?

Improvements

Solution Delivery and Decision Points

Preliminary Site Survey & Outline proposal

In principal agreement

by "CLIENT"

Detailed study on

site

Contract acceptance

Confirm Energy Saving Methodology

Agree on Energy Saving

Targets

M&V plan,

Confirm Energy

Performance

M&V base line

Installation Phase –Design,

Deploy Preselected

Supply Chain, Project

Management

Commissioning

Optimisation phase

EnPC Operation

Phase

Training, Monitoring &

Reporting

Ongoing Analysis and verification

Continuous improvement

Annual M&V verification

Share of saving verifications

2 weeks 4 weeks 6 weeks 3 – 6 months 4 to 7 years

� Reduce energy costs

� Reduce maintenance costs through reduced plant load

� No capital outlay

� Positive cash flow from day one

� ECA – Tax incentive, 100% of the costs may be claimable within the first 12 months of installation

Financial benefits

Reduce facilities demand & increase spare capacity

Reduce green house gas emissions

Improve environmental stewardship

Reduce plant downtime through critical systems monitoring

Meet customers sustainability expectations of the supply chain

Non financial benefits

• "CLIENT" management in-principal commitment to the process expressedthrough a formal letter of intent requesting that AA proceed with thedetailed study

• Detailed study on site completed within 4 weeks

• Engineered & costed solution and proposal presented to seniormanagement within 6 weeks of receipt of the letter of intent

• Contract agreement finalised and signed within 4 to 10 weeks ofpresentation

Next steps

For more information please contact us at

Aurora Australis

Reinhold Wieland

r.wieland@aurora-australis.co.uk

M +44 (0) 7720 755 866

Tel +44 (0) 1892 870 569

www.aurora-australis.co.uk

Questions?