Energy Efficiency Project Implementation Approach
Usually, when it comes to the process of conducting an Energy Efficiency (Facility Retrofit) project, there are a series of phases that are carried out as per the following:
- Preliminary Energy Audit, Prioritization & Business Case
- Walk-through audit, Baseline Establishment, and Technical Facility Profile Development
- Run Expression of Interest and select pre-approved Energy Service Providers
- Draft Request for Proposal & Head of Terms
- Tender Request for Proposal, Review Submissions & Award ESP
- Draft & Sign the Audit Development Agreement
- Supervise & Review Investment Grade Audit
- Develop Measurement & Verification Plan
- Review BAFO and Develop and Execute Letter of Award (LoA) and ESPC Contract
- Supervise and review Project Implementation (Detailed Engineering Design, Procurement, Installation, Functional Testing & Commissioning, and Handover)
Key Stages in Energy Efficiency Retrofit Projects
Preliminary Energy Audit, Prioritization & Business Case
In this step, a direct assessment is made to determine the energy-saving potential of the project and determine whether there is a business case or otherwise.
Walk-through audit, Baseline Establishment, and Technical Facility Profile Development
Based on the client’s request, a walk-through audit is conducted by Ark to survey the facility and develop its technical profile, as well as collect necessary utility & operational data to establish the baseline database.
Run the Expression of Interest and select pre-approved Energy Service Providers.
In this phase, the selected Energy Service Providers (ESPs) are contacted as vendors and are given an Expression of Interest (EoI) package to describe their ability as a company/consortium and develop the methodology/approach to calculate the energy savings and enhance the functionalities of the facility.
Draft Request for Proposal & Head of Terms
When the selected ESPs have been pre-qualified based on their EoI submission, a Request For Proposal (RFP) package shall be developed & shared by the Ark Energy team, specifying the objectives of the project, the process of submitting a qualifiable techno-commercial proposal, and the evaluation criteria of such proposals, as well as adherence to the Head of Terms provided by Ark Energy team for any Definitive Agreements.
Tender Request for Proposal, Review Submissions & Award ESP
In this stage, a walk-through audit is conducted by the ESPs, and a techno-commercial proposal is submitted accordingly. The Ark Energy team shall conduct a compliance check to ensure any gaps in the submission are addressed before any detailed review. After that, a techno-commercial proposal evaluation is conducted to address any clarifications, followed by an oral defense from the ESP. Finally, if the client is content with the proposal and the outcome of the evaluation with Ark’s recommendation, the top bidder will be notified of selection through a letter of intent to award for the detailed audit.
Draft & Sign the Audit Development Agreement
An Audit Development Agreement (ADA) will be drafted and shared by the Ark Energy team with the awarded ESP. The ESP will proceed to sign an ADA with the client. This contract is the first of two contracts with the awarded bidder, which would result in an Investment Grade Audit (IGA), during which the ESP is responsible for conducting a thorough condition assessment to determine the performance, operations, and life cycle of the existing equipment and instrumentation.
Supervise & Review Investment Grade Audit
The ESP shall conduct the IGA to include a comprehensive analysis of the facility’s current condition & performance and energy usage with projected energy reduction, cost savings, and itemized project cost. Based on the outcome of the IGA, the ESP will submit a technical report with supporting calculations, which will determine whether the client shall proceed with the engineering works or not. This would also determine whether certain performance criteria have been met to justify the financing of certain activities conducted.Develop Measurement & Verification Plan
After the IGA outcome has been submitted, the ESP shall also provide a Measurement and Verification (M&V) Plan to include the methodology, process, roles & responsibilities of quantifying the savings generated from the Energy Conservation Measures and validating their impact on the facility’s performance as forecasted during the IGA and as per the Client’s requirements and design intent.
Review BAFO and Develop and Execute Letter of Award (LoA) and ESPC Contract
Upon conclusion of the IGA, the awarded ESP shall submit to the Client an updated proposal, or Best-and-Final-Offer (BAFO), including but not limited to an updated list of ECMs with their specs and warranties, energy savings target, project cost breakdown for the ECMs, selected funding model, as well as a schedule for project delivery and implementation. Once this offer is in line with the Clients’ requirements, the Clients' provide approval and sign off by a Letter of Award (LoA) and signing an Energy Savings Performance Contract (ESPC) with the ESP containing the final agreed-upon scope and funding mechanism.Supervise and review Project Implementation (Detailed Engineering Design, Procurement, Installation, Functional Testing & Commissioning, and Handover)
These would be the amalgamated steps involved in implementing the measures that were agreed upon with the client and Ark Energy teams, which include preparing and providing detailed design services for the complete integration of ECMs as per the project’s objectives, delivery of selected material and procurement of services, installation with safety procedures taken into account, functional testing and commissioning, performance testing, and transfer-over of all final documents in satisfactory operating condition to the client.