Transcript ｽﾗｲﾄﾞ ﾀｲﾄﾙなし

Taiwan ESCO International Conference
The business promotion experience of
FESCO in Japan
September 22, 2000
at Taipei International Convention Center, Taiwan
Kenzo Tsutsumi
President of
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Today’s Presentation
1. Starting ESCO business in Japan
2. FESCO Corporate Structure
3. Business Policy & Strategy
4. Standard Energy Service Process
5. Target Market (Industrial, Commercial,
Institutional & Government)
6. Project Examples (Energy Audit & Services)
7. Critical Success Factors for ESCOs
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Starting ESCO business in Japan
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2-years Consortium for start-up
Pros & Cons for ESCO business
FESCO was started on May 1997
Social changes: strong pressure for
energy conservation
– COP3 was held at Kyoto on Dec. 1997
– New energy conservation low on April 1999
– Deregulation of electric market on March 2000 etc.
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FESCO
Corporate structure -1
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Network alliance corporation
– 15 SPPNs & PPNs for vertical integration
PPN
SPPN
Monitoring
Verification
Project
Development
FESCO
Construction
Management
Energy
Survey
Maintenance
Manufacture
Finance
Contractor
Engineering
SPPN: Special performance partner network (Shareholders of FESCO)
PPN: Performance partner network (Affiliated members)
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FESCO
Corporate Structure -2
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HQ : only 7 to 8 employees
15 Satellites at affiliated SPPNs
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Engineering : 4 companies
Construction : 1 company
Air-conditioning & Electricity : 5 companies
Finance : 1 company
Facility management : 2 company
Control : 1 company
Marketing : 1 company
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Business Policy & Strategy
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FESCO as “ Facility Doctor ”
– Comprehensive energy saving approach
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15 SPPNs cover for different fields
Other PPNs for the other fields
- Swage treatment / Waste management
- Heat insulation / Energy supply business
– Energy survey in neutral position
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Don’t stick to one solution
Don’t sell one appliance
Give sophisticated TCO solution to every client
Flexible financial services
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Standard Energy Service Process
4 Steps
Project
Detail
Survey
Walk
through
DES
EER
ESA
M&RS
CM
M&O
0.5 to 1.5 yrs
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Target Market Identified
3-year FESCO Experiences
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Industrial :
– 70% of projects
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Commercial :
– 20% of projects
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Sales US$8.5 mil.
Sales US$1.0 mil.
Institutional & Government :
– 10% of projects
Sales US$2.5 mil
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Target Maket - 1
Industrial Energy Saving Measures & Needs
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Higher quality & productivity
– Low costs: 3 to 5-year payback
– Higher operating rate facilities preferable (24hrs, 365days)
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Demand side ESMs :
– Facility energy: Lighting / Air-conditioning / Motor control etc.
– Production energy: Compressor / Boiler / Furnace / Machine etc.
– Other points: Production control system / Maintenance etc.
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Supply side ESMs :
– Co-generation / Ice storage system / Green energy etc.
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Target Maket - 1
Industrial Barriers & Countermeasures
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Project investment horizon is short
– Select short payback ESMs / Planning is important
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Industrials have access to low cost capital
– Use their own capital instead
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They have good technical knowledge
– Work together / Support positioning
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They understand the real costs
– Break down your pricing & let them choose
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They will steal ideas & do it themselves
– Request a consulting fee / Letter of intent
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Target Maket - 2
Commercial Energy Saving Measures & Needs
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Reduce operating costs (Higher operating
income / profit)
– Lower energy / maintenance / water consumption / sewage costs
– Higher operating rate preferable : Hospitals & Hotels
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Demand side ESMs :
– Facility energy: Lighting / Air-conditioning / Motor control etc.
– Other points: Total facility management / Maintenance etc.
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Supply side ESMs :
– Co-generation / Ice storage system / Green energy etc.
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Target Maket - 2
Commercial Barriers & Countermeasures
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Low motivation for energy saving
– Regulation & promotion needed / subsidies
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Tenant occupied bldgs less concerned
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Utitily billing for energy services
Sign ESA with each tenant
Limit project common areas
Focus on owner occupied facilities
Professional real estate managers
– Do they have incentives for cost down?
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Target Maket - 3
Institutional & Government ES Measures & Needs
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Show the leadership for Energy Saving
Funds to pay for the improvement
Turnkey solution
Increased quality & safety
Demand & Supply side ESMs :
– Same as the Commercial facility
– Lower operating rate / Longer payback period
– Government subsidies needed
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Target Maket - 3
Institutional & Government Barriers & Countermeasures
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Will require competitive bid
– Request the turnkey bidding system (Design + construction )
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Bureaucracy will slow things down
– Get inside the bureaucracy
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Customers are often less flexible
– Work with their problems & restrictions
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Lack of technical & financial sophistication
– Can be an asset for ESCO
– Simplify financial aspects (Single year accounting)
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Energy Audit Example - 1
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Chemical Plant
– Annual expenses for electricity & fuels: US$ 8 mil.
– Annual electricity usage : 23 GWh
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Proposed results:
– Expected energy cost reduction : US$ 3.6 mil. (45% of total)
– Required initial investment : US$ 13.8 mil. (3.8 yrs)
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Proposed ESMs:
– Effective lighting system / Auto-condenser / Heat recovery
system for exhaust air / Motor inverter control / Roof
insulation / Co-generation / Effective swage treatment /
Monitoring etc.
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Energy Audit Example - 2
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Semiconductor Plant
– Annual expenses for electricity & fuels: US$ 22 mil.
– Annual electricity usage : 125 GWh
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Proposed results:
– Expected energy cost reduction : US$ 4.4 mil. (20% of total)
– Required initial investment : US$ 12.5 mil. (2.8 yrs)
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Proposed ESMs:
– Effective Clean room system / Effective lighting system / Autocondenser / Motor inverter control / Co-generation / Icestorage system / Effective water treatment / Monitoring etc.
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Energy Service Project Example - 1
Industrial - Computer device manufacturing
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Project scale:
– Annual expenses for electricity & fuels: US$ 3 mil.
– Annual electricity usage : 17 GWh
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Contracted numbers:
– Expected energy cost reduction : US$ 150 K (5% of total)
– Required initial investment : US$ 850 K (5.8 yrs)
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Installed ESMs:
– Effective lighting system / Motor inverter control system /
Renewal to Turbo compressor
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Energy Service Project Example - 2
Commercial - Office building in Tokyo
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Project scale:
– Annual expenses for electricity & fuels: US$ 550 K
– Annual electricity usage : 2.3 GWh
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Contracted numbers:
– Expected energy cost reduction : US$ 76 K (14% of total)
– Required initial investment : US$ 300 K (3.9 yrs)
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Installed ESMs:
– Effective lighting system / Air-conditioning inverter control
system
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Energy Service Project Example - 3
Institutional - Municipal Hospital
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Project scale:
– Annual expenses for electricity & fuels: US$ 2 mil.
– Annual electricity usage : 11 GWh
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Contracted numbers:
– Expected energy cost reduction : US$ 200 K (10% of total)
– Required initial investment : US$ 1.5 mil. (7.5 yrs)
– Got 0.5 mil. Government subsidy (Actual payback 5.0 yrs)
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Installed ESMs:
– Effective lighting system / Motor inverter control system /
Automatic -monitoring system
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Critical Success Factors for ESCOs
External
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Securing attractive projects
– Establish the Brand image for ESCO business
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Providing high quality engineering &
installation in competitive cost
– Strategic alliance & partnership is must
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Providing flexible contractual scheme
– Don’t stick to standard ESCO contract
– ESCO is not promoting a single fixed financing
– Performance Contracting should be adjusted to local situation
& client needs
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Critical Success Factors for ESCOs
Internal
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Ability to leverage marketing, sales &
technical capability in the organization
Management systems, software & tools
– Internet & Information technology maximum usage
– Energy audit process package tools
– Monitoring system & software
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Entrepreneurship sprits & belief
– “Service” is not free of charge
– ESCO is providing not for just energy saving but for best
solutions to enhance clients’ value
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Thank you
Sanbancho Sekiya Bldg 2F
22-7 Sanbancho, Chiyoda-ku, Tokyo
Japan 102-0082
TEL : +81-3-3288-4228
FAX : +81-3-3288-0102
e-mail : [email protected]
HP : http://www.fesco.co.jp
Portal Site : http://www.ecube-net.gr.jp
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