Background Story
A leading non-governmental organization (NGO) managing a network of 50 community centers, healthcare clinics, and educational facilities sought to lower operational costs and improve sustainability. With energy expenses consuming a significant portion of the NGO’s budget, reducing consumption was essential to maximize funds for critical humanitarian programs.
Recognizing the need for a structured and impactful energy efficiency strategy, the NGO engaged Ark Energy to develop and oversee a full-scale energy efficiency project, from initial assessment to implementation and long-term savings verification.
Problems
- High energy costs limit resources for health, education, and community services.
- Aging infrastructure with inefficient HVAC, lighting, and water systems driving excessive consumption.
- Reliance on donor funding requires a financially viable energy efficiency plan with a strong return on investment (ROI).
- Lack of centralized energy monitoring and control across the portfolio.
Main Objective
- Reduce operational energy costs to free up resources for core humanitarian and community programs.
- Implement sustainable energy solutions that align with environmental and social responsibility goals.
- Enhance asset value and operational efficiency through modernized infrastructure.
- Ensure long-term financial and environmental impact by structuring a performance-based contract.
- Improve data-driven decision-making through centralized monitoring and smart energy management.
Approach
Ark Energy was critical in supervising the project from the auditing phase to implementation and M&V, ensuring transparency, accuracy, and financial viability. Business Case Assessment (Preliminary Energy Audit – PEA)
- Conducted a portfolio-wide benchmarking analysis based on ASHRAE Level 0 standards.
- Identified buildings with the highest potential for savings.
- Developed an investment-grade business case to secure funding and stakeholder buy-in.
Tendering Phase & ESCO Selection
- Developed a comprehensive Request for Proposal (RFP) to ensure competitive bidding from qualified ESCOs.
- Conducted a technical and financial evaluation of proposals.
- Led the ESCO selection process, securing the best partner for the project.
Investment Grade Audit (IGA) Supervision & Review - Supervised the selected ESCO in conducting ASHRAE Level 3 audits across the 50 facilities.
- Reviewed all proposed Energy Conservation Measures (ECMs) for feasibility and savings accuracy.
- Key ECMs included:
- Solar PV Systems – On-site renewable energy generation for self-sufficiency
- Heat Pump System Installation
- Split AC Units Replacement with VRF
- Lighting Retrofits
- Installation of Solar Water Heaters and Solar Power Refrigerators
- Replacement of HVAC Units
- VFD Retrofit for Water Pumps
- Conducted a technical and contractual review to ensure project viability.
ESPC Contract Execution
- Structured a performance-based Energy Savings Performance Contract (ESPC) between the NGO and the ESCO.
- Ensured risk mitigation through proper contractual clauses, aligning interests between the ESCO and funders.
- Facilitated contract negotiations to maximize financial and operational benefits for the NGO.
Implementation Supervision (Ongoing)
- Overseeing the deployment of ECMs across all 50 facilities.
- Ensuring quality assurance and compliance with international standards.
- Managing project timelines and performance milestones.
Third-Party Measurement & Verification (M&V) Supervision (Ongoing) - Conducting independent M&V audits to verify savings and ensure performance guarantees.
- Utilizing ArkEMIS (Energy Management Information System) for real-time tracking and reporting.
- Ensuring compliance with IPMVP standards for accurate savings validation.
Results
The results that were generated from the project include the following: