Energy Efficiency in Public Buildings in Brazil – Guidelines for

Implementation

Anand Subbiah, Nexant Inc.

April 30, 2002, Kubitschek Plaza Hotel, Brasilia, Brazil

Implementation Steps – Preliminary Audit

Preliminary identification of potential for improvement in buildings energy systemsInvitation to for preliminary energy auditProposals based on preliminary audit

Estimated baseline energy consumptionAnnual estimated cost savings over life of projectAnnual guaranteed cost savings over life of projectAnnual contractor paymentFederal agency share of cost savingsEstimated investments

Implementation Steps – Detailed Audit

Acceptance of preliminary proposal and invitation for detailed energy audit

Preparation of Statement of Work/Request for Proposal

Facility performance requirements – lighting standards, HVAV standards, etc.

Select ESCO(s)Site VisitDetailed facility energy audit

Implementation Steps – Detailed Audit

Detailed Audit ReportMeasure Description

Confirmation of preliminary audit findings

Revisions to Energy Consumption Baseline, Cost Savings, Guaranteed Savings, and Investment Plan Monitoring and Verification Plan

Baseline confirmationVerification of savingsIdentification of variables – operating hoursAnnual energy audit for verification of savings

Implementation Steps – Detailed Audit

Detailed Audit ReportOperation and Maintenance Plan

ESCO/Contractor roleFederal agency roleReplacement of equipment

Training for Building PersonnelPayment Plan

Annual amortized payment for investments + profitAnnual payment for O&M + profitAnnual federal agency share of cost savingsReconciliation of payments based on M&V and annual audit

Implementation Steps – Detailed Audit

Detailed Audit ReportFinancing Plan

ESCO/Contractor financingThird party financing

Management ApproachManagement teamProject staffingQualifications, skill, experienceSchedule for implementation

Past Performance and Project Experience

Implementation Steps – Proposal Evaluation

Proposal Evaluation FactorsTechnical

EngineeringEnergy baselineEnergy savingsO&M planM&V planAnnual audit for verification

Implementation Steps – Proposal Evaluation

Proposal Evaluation FactorsManagement

Management organizationRoles and responsibilitiesQualification and experience of personnelQuality control measures

Past PerformanceProject experienceCompany qualifications

Implementation Steps – Proposal Evaluation

Proposal Evaluation FactorsCost Proposal

Performance Risk AssessmentPrice RealismBest Overall Value

Implementation Steps – Proposal Evaluation

Offeror Score Technical Management Performance Risk-assessment

Price Realism

Proposed Price ($)

Total Score Available

1000 250 250 250 250 None

A 885 240 235 225 185 3,150,000 B 813 221 247 185 160 2,640,500 C 557 173 194 105 85 2,566,607

Proposed Implementation Setup

Proposed Implementation Setup

PROCEL Agência ESCO Consultoria

Building data Collection

Selection of buildings

Training to Agencies on

Bidding Process and ESCO Selection

Agreement with Federal Agency

Preliminary Audit to estimate Savings Potential

Development of Bid Package

Biding

Analysis of the proposals and Selection of ESCO

Deatailed audit by ESCO to confirm expected energy savings, M&V, etc.

Sign Performance Contract with the agency

ESCO implements the project

Review Progress, Monitor cost savings, Make Payments to ESCO

PROCEL - Create a database of projects and achievements

executes M&V

Overview of FEMP Program in USA

DOE Program to promote energy efficiency in federal buildingsAnnual budget of $25 millionAnnual Federal Energy Bill - $4 billionSavings achieved – 20% per square footTarget – 30% by 2005