Background Story
A government entity overseeing public infrastructure sought to implement a large-scale energy efficiency project across a portfolio of 60 buildings, including 40 schools, 13 hospitals, and 7 office buildings. The initiative aimed to reduce energy consumption, optimize building performance, and ensure long-term cost savings while aligning with national sustainability goals. Ark Energy was engaged as an independent consultant to oversee the project, ensuring rigorous auditing, contract due diligence, and implementation supervision. Problems
- Complex portfolio with diverse building types and energy usage patterns.
- Ensuring the Investment Grade Audit (IGA) accurately reflected energy-saving opportunities.
- Evaluating and mitigating contractual risks between key stakeholders.
- Guaranteeing smooth project execution and reliable performance measurement.
Main Objective
- Reduce the facility’s total energy consumption and operational costs.
- Implement effective Energy Conservation Measures (ECMs) for improved efficiency.
- Enhance asset performance while ensuring regulatory compliance.
- Leverage digital monitoring for ongoing performance optimization.
- Reduce carbon footprint and support sustainability initiatives.
Approach
Ark Energy was critical in supervising the project from the auditing phase to implementation and M&V, ensuring transparency, accuracy, and financial viability.
Investment Grade Audit (IGA) Supervision & Review Conducted a detailed review of the IGA submitted by the selected ESCO.
Assessed energy conservation measures (ECMs), which included:
- HVAC Optimization – Chiller plant optimization, FAHU & AHU controls, and VFD installation.
- Lighting Retrofit – Replacement of conventional lighting with high-efficiency LEDs.
- Solar PV Integration – Deployment of rooftop solar systems for renewable energy generation.
- Building Automation & Control Upgrades – Smart controls for real-time energy management.
- Water Conservation Measures – Installation of water-saving devices to reduce utility consumption.
Identified potential risks and red-flagged inconsistencies in savings calculations and technical assumptions.
Contractual Due Diligence
Reviewed and flagged critical issues in contracts between:
- The financier and end user to ensure project viability and alignment with financial commitments.
- The ESCO and financier verify fair risk allocation, performance guarantees, and compliance with industry best practices.
Provided recommendations to enhance contract terms and safeguard long-term savings.
Implementation Supervision
- Ensuring proper execution of ECMs as per the agreed scope.
- Monitoring project timelines, installation quality, and adherence to performance standards.
- Facilitating communication between stakeholders to maintain alignment on objectives.
Measurement & Verification (M&V) 3rd party audit
- Overseeing third-party M&V audits to validate energy savings and financial performance.
- Ensuring compliance with ASHRAE and IPMVP standards for accurate and transparent reporting.
- Utilizing digital tools for real-time energy monitoring and verification.
Results
The results that were generated from the project include the following:- Annual Energy Savings: 38,568,216 kWh
- Annual Cost Savings: 18,242,800 AED
- CO₂ Emission Reduction: 15,813 tons annually
- Enhanced Equipment Performance & Longevity
- Improved Operational Transparency through Digitalization