we are Taegeun Kang, PhD, CEM, PMP , Sr Tech Specialist, ICF 3 0 M - - PowerPoint PPT Presentation

icf.com

we are

3 0 M a y 2 0 1 8 2 0 1 8 E n e r g y S u m m i t

Green Revolving Fund for Industry

Taegeun Kang, PhD, CEM, PMP, Sr Tech Specialist, ICF

ICF proprietary and confidential. Do not copy, distribute, or disclose.

ICF at a Glance

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• Established in 1969 (Headquarter in Fairfax, Virginia, US)
• 5,000+ employees, 67 offices worldwide
• Revenue US $1.2 billion
• Offers advisory and implementation services to assist clients in strategy

and policy analysis, program management, project evaluation, and other services.

• Our markets: Energy, Environment, Climate, Health, Transportation, etc.
• At ICF Canada we are focused on energy efficiency, providing

support to government and utility programs, as well as industrial companies

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Contents

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• Background
• Barriers to Industrial Energy Efficiency
• Current Energy Funding Model
• Green Revolving Fund (GRF)
• Expected Benefits from Industrial GRF
• Industry Survey
• Summary

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Barriers to Industrial Energy Efficiency

4 Sorrell et al, UNIDO report (2011) & Personal experience

Lack of project funding Lack of staff time/expertise Lack of knowledge Lack of senior management support Lack of sub- meter Lack of site wide

• pportunities

Lack of non- energy benefits Lack of incentive info Lack of vendors info Lack of energy plan Uncertainty regarding company future Conflict of interest within the company Long decision chain Other priorities for capital investment Shorter payback requirements Lower priority to energy management Risk of cost of production disruption Difficult to measure savings Dept not accountable for energy costs Uncertainty about new technology Energy manager lacks influence Weak public pressure No energy policy Not enough incentive from Gov’t Management resistance to change

Lack of energy training/education

Lack of case studies Difficult to change culture Energy cost considered as fixed cost Lack of market demand

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Current energy funding model

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• Same budget from previous year
• No energy budget
• Struggle to get the energy fund

from Operations, Engineering, Maintenance, Capital budget, etc.

ICF proprietary and confidential. Do not copy, distribute, or disclose.

What is Green Revolving Fund?

6 Greening the Bottom Line, Sustainable Endowments Institute (2012)

• A special account designated for energy efficiency projects
• The cost savings from these projects are then used to replenish the GRF
• Once the funds are replenished, they can be redeployed to finance new

projects

Green Revolving Fund Energy projects Savings achieved

• To provide funding sources for

sustainability projects

• To improve energy performance

continuously

• To promote the environmental and

financial value of avoided costs

M&V

ICF proprietary and confidential. Do not copy, distribute, or disclose.

GRF Stats

• First GRF at Western Michigan University in 1980.
• 5 GRFs at five institutions between 1980 & 2000.
• 16 GRFs by 2008.
• 63 GRFs (76 Universities) between 2008 & 2012.
• GRF Funds varies between $12K and $13M.
• 900 projects.
• 28% ROI.
• Not all GRFs are the same.
• GRF has been well established in academics,

but not in manufacturing industry

7 Greening the Bottom Line, Sustainable Endowments Institute (2012)

Growth of GRFs: 1980-2012

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Adidas – Case Study

• BARRIER: Hurdles to investing in energy efficiency and renewable energy

projects due to time, budget, and expertise constraints

• SOLUTION: Develop a greenENERGY Fund within the company that

identifies investments in leased and owned stores, manages project risk, and monitors and verifies project savings

• OUTCOME: Invested $5.5 million in 49 projects between June 2012 and

Nov 2015. Forecasted an internal rate of return of 33% across project

• portfolio. Avoided 118 GWh.

8 http://www.brandchannel.com/2016/05/06/adidas-sustainability-050616/

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Expected Benefits from Industrial GRF

• Faster track
• Power of energy manager
• Rigorous M&V
• Continuous monitoring and

improvement

• Employee engagement
• Energy awareness

9 Kats et al (1996), http://aceee.org/files/proceedings/1996/data/papers/SS96_Panel5_Paper15.pdf

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Survey from 17 Industry Participants

10 Survey period: Mar 19 – April 4, 2018

Province Industry type Job title

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Do you have an energy fund used

• nly for energy

projects?

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What is the biggest barrier to energy projects?

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Is a GRF an effective method to implement energy project?

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Who can initiate a GRF at your company?

ICF proprietary and confidential. Do not copy, distribute, or disclose.

What would be a barrier to set up a GRF?

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ICF proprietary and confidential. Do not copy, distribute, or disclose.

Would you set up a GRF if Utilities/Gov’t incentives are available as seed fund?

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ICF proprietary and confidential. Do not copy, distribute, or disclose.

Summary

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GRF

50% 55% 57% 64% 87%

Barrier: Capital Effective Solution GRF can be set up by senior management Barrier to GRF: Difficult to change culture & senior support Willing to set up GRF with external help

• Faster track
• Power of energy manager
• Employee engagement/awareness
• Rigorous M&V
• Continuous improvement

ICF proprietary and confidential. Do not copy, distribute, or disclose.

Small steps to start a GRF

• Discuss initially with all parties.
• Start with a small GRF, e.g., Lighting GRF, Motor GRF, etc.
• GRF Seed fund from all (or part of) incentives.
• Pilot GRF program from Utilities/Gov’t ?
• GRF - Essential Part of Continuous Energy Improvement.

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ICF proprietary and confidential. Do not copy, distribute, or disclose.

Thank You Green Revolving Fund for Industry

Taegeun Kang, ICF Canada (306) 206-0343 Taegeun.Kang@icf.com

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