Energy Solutions Johnson Controls in a nutshell Founded 127 years - - PowerPoint PPT Presentation

Johnson Controls Building Efficiency

Energy Solutions

Johnson Controls in a nutshell

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Founded 127 years ago Present in 125 countries $44 billion (USD) company 160,000 employees worldwide Dividends paid consecutively since 1887

What is an ESCO?

Nothing that new...

JAMES WATT (1736-1819) "We will leave a steam engine free of charge to you. We will install these and will take over for five years the customer

• service. We guarantee you that the coal for the machine costs less, than you must spend at present at fodder (energy)
• n the horses, which do the same work. And everything that we require of you, is that you give us a third of the money,

which you save."

GratzerEnergieagentur, (GEA) 2008 An Energy Service Company (ESCo) implements a customized energy service package (consisting of planning, building, operation & maintenance, optimization, (co-)financing, user behavior …). The ESCo provides guarantees for all inclusive cost and results and takes

• ver commercial and technical implementation and operation risks over

the whole project contract

Dirk Den Haese, - EnergyMag 2011 An ESCO is a catalyst in a sustainable and financially feasible energy saving process in a community.

The problem that over 75% of our customers are facing… Does this sound familiar?

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If not, I suffer:… loss of money / competitive disadvantages / demotivation / branding issues / missed opportunities for innovation / … If not, I suffer:… loss of money / competitive disadvantages / demotivation / branding issues / missed opportunities for innovation / …

“I would execute some energy saving projects, if I find…”

8% 8% 9% 9% 12% 19% 30% 9% 10% 10% 11% 15% 17% 26% 0% 10% 20% 30% 40%

Landlord/tenant split incentives No organizational ownership Lack of awareness Lack of technical expertise Uncertainty re: savings/performance Insufficient payback/ROI Lack of funding 2012 2011

Energy Efficiency Indicator 2012

Advantage in cash flow from an Energy Performance Contract Upfront investment money needed Risk of non-sustainable savings Immediate positive cash-flow Zero risk return from savings

Large refurbishing (building structure above 50%

• f overall costs of the project )

Payback time 10 years 15 years 20 years 30 years 40 years 25% 50% 75% Energy reduction rate

+ Building structure (insulation, windows...) + Renewable energy (Biomass, geothermal, advanced heat pumps, cogeneration...)

HVAC & electrical installations Regulation & building management systems HVAC & electrical installations Regulation & building management systems

Different kinds of Energy Performance approach

Source: EnergInvest

How a region like Twente could benefit from EPC

Example of Paris model, widely copied and used

Advantages and benefits for the region of Twente

General risks and pitfalls of EPC contract

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The way to EPC is transparant and simple

Private customers

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What are the most interesting energy saving measures in your facility? What is the process to be followed for converting ideas into cash, and what will this process cost? What are the estimated costs and returns of the most interesting energy saving projects? Which final energy saving measures will be engineered in detail? What are the guaranteed savings and costs related to the projects, how will savings be measured and the project be planned? Transfer ideas into sustainable energy saving projects through concluding the Energy Performance Contract

Go / No go Go / No go Go / No go

Empire State Building New York

• 38%

Overall energy reduction

• $4,4M

annual energy cost reduction

• 33%

less energy for Cooling

• 3,1

Payback period

• 105,000 ton CO2 reduction over a period of 15 years
• LEED “Gold” certification target

Thanks for your attention

Dirk Den Haese Regional Director BeNeLux & France Energy Solutions Building Efficiency Tel: +32 2 709 44 68 Mob: +32 491 351 351 Fax: +32 2 709 44 18 E-Mail: Dirk.Den.Haese@jci.com Building Efficiency Pegasus Park De Kleetlaan 3 Diegem 1831 Belgium