Loreto Duffy-MayersCHENACT

IRENA Martinique

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

• 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 (<50, 51-100, 101-200, >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)

Page 4

Overview of the Caribbean Hotel Sector

2,269 hotels in 25 countries/territories comprising 241,000 guestrooms

Page 5

Hotel Sector Electricity Cost Share of GDP in the Caribbean

0.05%

0.31%0.1% 0.1% 0.2%

0.5%

0.9% 0.9% 1.0% 1.0%1.2% 1.2% 1.2%

1.4%

1.7%

2.3% 2.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Hote

l Sec

tor E

lect

ricity

Cos

t as

% o

f GDP

Hotel expenditures on electricity can represent more than 2% of total national GDP in smaller countries.

Page 6

Annual CO2e Emissions Reduction – Caribbean Region Hotel Sector

884 thousand tons CO2e emissions can be avoided annually through EE actions

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

Page 8

Caribbean is an attractive market for a number of EE/RE measures

EquipmentElectricity

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

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.

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 Saved CO2 Emissions

Pumps $4,661 $7,770 0.6 35,125 26.34

Controls $63,376 $20,168 3.14 76,701 57.53

VRV and Tint $226,977 $70,414 3.22 239,587 179.69

Retrofit indoor Lights $21,467 $27,314 0.79 123,473 92.6

Retrofit outdoor lights & PV system $94,971 $22,403 4.24 101,272 75.95

Total $411,452 $148,068 2.78 576,158 432.12

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:

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.

Page 12

Hotel Energy Efficiency CDM Program of ActivitiesRecommended 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

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 CO2e 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 CO2e reduced annually

•267,970 kiloliters of diesel/HFO in reduced imports annually

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.

Page 15

Loreto Duffy-MayersRegional Programme ManagerCHENACT

Tel: (246) 5719602

E-mail: chenactproject@gmail.com