Power Quality Savings: Empowering Local Authorities to work for - - PDF document

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Power Quality Savings: Empowering Local Authorities to work for profitable Fulfilment of the Energy Savings Directive! Energia Europa title slide Ladies and Gentlemen, It is a pleasure to address you at this the first baseEUcities conference. My name is Stefano De Giorgis, and I am the CEO of Energia Europa S.p.A., the inventor and the producer of machines for significant reduction of electricity consumption. Please do not worry about taking notes, because my entire presentation with its slides are already available on the websites of Energia Europa S.p.A. as well as our marketing partners Power Quality Savings bv. We both are well represented at this event and welcome all the queries you have on your quest for electricity savings in your settings. My presentation will be short and I warmly invite you to engage us in a direct dialogue with representatives of Energia Europa and Power Quality Savings. Slide of bullet points, simplified

• It will provide you with the basic principles of our technology,
• indicate the scope for electricity savings,
• put our technology into its right perspective in terms of the bewildering array
• f electricity savings propositions,
• describe the E-Power project cycle and how it engages Energia Europa with

its client partners in an efficient and effective process to attain profitable electricity savings within the shortest possible frame of time,

• highlight our unique and patented bypass technology for verification of

electricity savings,

• draw the conclusions of our unique contracts with guaranteed savings.

In addition I shall briefly touch upon those positive effects of E-Power, which are not yet fully quantified, but which in some cases may turn out just as profitable as the electricity savings themselves. Slide with picture of a book on Power Quality Savings

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We shall look into an exciting and promising new field of research and development called Power Quality Savings. Power Quality Savings has attracted the attention of a number of scientists and researcher, including Dr. Prof. ir. Sjef Cobben from the Technical University of Eindhoven and books and papers have been published on the subject, including “Power Quality, Problems and Solutions”. The science consistently concludes that a perfect electric current will result in: A. Energy savings B. Savings on investments in electric appliances by reducing the need for service and extending their technical/economic lifetime. This presentation will largely focus on point A. Energy savings, as they are presently the most tangible, not least because they form the basis for our guaranteed savings

• contract. In the end I shall also address point B. in a tentative manner.

Till now only one industrial company has managed to translate this top notch science into patent protected machinery which offers local authorities a profitable way to cut their electricity consumption. That is Energia Europa S.p.A. And it does not stop there: My young expert staff can communicate the complex science in analogies which are intuitively appealing, charming and understandable! I invite you to enjoy it as it is being screened on our stand, and you can also watch it

• n our websites.

How much can be achieved in terms of electricity savings? Slide “Reducing the non-functional energy” Most local authorities have electricity loads consisting of a wide array of consumers

• f electricity. The composition of their consumption may look like this:

30% Outdoor lighting of public spaces, including sports arenas. Energia Europa has solutions which profitably may cut electricity consumption in the range of 15/20% depending on the types of lighting fixtures. 70% Lighting and mechanical use of electricity in public buildings, which may include lifts, ventilation, kitchens etc. involving a bewildering array of

• equipment. How to address such a complex issue? By addressing one

consumer at a time or by addressing them collectively? Energia Europa is the only producer of technological devices which collectively address the issues of all the electricity consumers. The product is known as the E-

• Power. The benchmark for electricity savings for such appliances is 5%,

but may in effect be more than double that figure.

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So how are these savings achieved? Slide “How it generates saving” And what does the perceived competition offer? Voltage reduction affecting only one of the parameters covered by the E-Power, and that comes at a cost as well in voltage reduction systems. Slide”E-Power” Where does Energia Europa’s technology and machinery fit in? It is natural to ask “what is the relationship between Energia Europa’s solutions and technological improvement of the various kinds of electricity consumers like lighting fixtures?” Electricity savings are most often seen as resulting from stepping up to the next level of technology of the individual consumers like lighting fixtures. In that particular area the development has been breathtaking. Investment decisions made a few years ago were generally based on the assumption that the new fixtures would remain the most economical for several years and their expected lifetime would be long, up to 10 years. With hindsight these assumptions did not hold and many investors now face the dilemma whether to change the fixtures well ahead of the original plan and realize financial losses from these investments. Energia Europa’s perspective is different as our machines generate savings on all types of loads, old or new. In effect we offer a profitable way of leveling out the economic performance of various generations of electricity consumers, lighting fixtures included. That means that Energia Europa’s E-Power machine will always produce profitable electricity savings, and the savings will be higher for the older generations of fixtures than the newest. In this respect E-Power serves to protect and defend the investment decisions of earlier days and render them profitable as originally planned. Slide “Standards” Energia Europa’s equipment complies with all relevant norms and requirements in the locations in which they are installed.

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What is the scope for electricity savings and why is it not the same for all? There are two factors determining the scope for Power Quality Savings:

• 1. The quality of the electricity consumed as well as the fluctuation of electricity

consumption over time.

• 2. The composition of various kinds of electricity consumers which can be

categorized according to their scope for savings. Both aspects need assessment and analysis in each individual case. Slide “Office Buildings Swimming pool” On our websites we provide detailed information on numerous reference projects. For this presentation I would like to explain the electricity savings which were achieved in an office building in Tel Aviv, far in excess of the norm of 5%. (Comments to the two slides in Stefano’s own words). Slide showing PQS’ project cycle The E-Power Project Cycle The Project Cycle runs in three phases which describe the logical stages of project development as they occur in smooth succession.

• 1. The PQS Norm or Benchmark for electricity savings.

Energia Europa has installed close to 500 E-Power machines. About 80% of them covering all kinds of businesses and all kinds of electricity consumers produce 5% electricity savings or more. On that basis – and without any commitment on our part – we have elected to use 5% as the norm for savings which may be expected from using the E-Power machine. Depending on the local electricity tariffs the payback period for the E-Power investment will typically be between two and four years.

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• 2. Validation of the Electricity Saving Potential

Most local authorities are likely to feel attracted by the perspective of making profitable investments in energy savings according to the norm, but in order to proceed to make the savings a reality under the existing circumstances a validation

• f the savings norm is needed.

The validation takes the form of a site survey performed by an authorized expert to determine the scope for electricity savings. The survey is non-intrusive and does not pose any risk of power breaks. It will normally take 2 hours per main breaker. The result of the site survey is a feasibility study which concludes in a binding commercial offer which notably includes our unique formula for guaranteed savings. It works like this: Assuming that the computation of the electricity savings potential is 5.4% this savings rate less a standard 0.5% point margin of error, i.e. 4.9% will constitute the guaranteed savings. In case the savings cannot be verified as actually accomplished by the machine, compensation will be made by reducing the contract amount to safeguard the guaranteed payback period of the investment. It is important that the timespan between validation and contract/commissioning and verification is kept at a minimum to avoid the risk of changes of the composition

• f electricity consumers which may impact the savings potential.

In case of mutual understanding that guaranteed savings surpassing pre-defined benchmarks will contractually lead to project implementation within the next 12 months, we shall be willing to undertake the site survey without charge.

• 3. Verification of the electricity savings

A natural question to ask is: How is it possible to verify electricity savings? How to compare the electricity consumption resulting from using the E-Power machine with the hypothetical situation of continuing without E-Power? The answer lies in the unique and Energia Europa patented bypass system, which provides its own monitoring and documentation of the electricity consumption with and without the E-Power. After installation and commissioning of the E-Power machine the verification takes place based on a transparent and easily verifiable procedure. The partnership between Energia Europa and its clients in Power Quality Savings does not stop there. During a two years’ guarantee period there will be a constant remote monitoring of the performance of the E-Power from the Italian head office of Energia Europa, and after that a long term partnership is encouraged at cost.

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Conclusions on the Guaranteed Savings I have tried to give you a brief introduction to Energia Europa and its electricity savings technology and machines, notably the E-Power. I have also provided you with a picture of the project cycle and the progression of certainty pertaining to energy savings produced by us and our machines from the savings norm generated from past experience with the performance of our machines, which we believe will inspire you, all the way through a swift, smooth and transparent process to contracts with guaranteed savings. You will notice that there are no risks involved I hope that I have provided you with a clear and inspiring vision of how it is possible to move decisively towards the targets set out by the Energy Savings Directive, and how it can be done in a profitable manner. The Promising Extras I have deliberately concentrated my presentation on the tangible, the verifiable, and what lends itself to be contractually guaranteed by us. However, this is not the whole story. There is more to it. We know that producers of electric lighting fixtures have estimated the lifetime of their products to be potentially extended by 30% assuming availability of “perfect electric current”. What their experts have theorized Energia Europa has realized! Similarly there is a significant savings potential in terms of the technical/economic lifetime of electrical motors etc. and correspondingly lower costs of maintenance in case the E-Power is applied to produce this “perfect electric current”. The savings potential from such effects of using the E-Power machine are believed to potentially exceed in certain cases the value of the electricity savings themselves. The challenge is to quantify these benefits. Energia Europa cannot do that alone. But we welcome an exchange of experience with the entire E-Power users’ community for mutual inspiration and for collectively redoubling our efforts to enhance the sustainability dimension of all we do. By managing our resources right we lay the foundation of an abundant life in harmony with our resources. Slide “They already made the first steps” “Well known Names who already benefit from Power Quality Savings”

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Where do We go from here? Our norm or benchmark of 5% electricity savings and a payback time for the investment four years or less appeals to most decision makers. In case that you are able and willing to commit contractually within the next 12 months based on successful validation of such scope for electricity savings, we urge you to arrange for the site survey at your earliest convenience. This decision will actively get you embarked on the E-Power project cycle and guarantee you to start making electricity savings without delay and reap the extra economic and environmental benefits, which are still to be quantified. Therefore, please contact representatives of Power Quality Savings bv or Energia Europa with a view to make swift and profitable changes in your local community. And please use our websites actively as you may find inspiration and encouragement there! Ladies and Gentlemen, thank you for your attention!