The U.S. Department of Energy (DOE) today announced new projects between American and Chinese companies to collaborate and showcase successful models that can help industry adapt to new approaches and build business opportunities. These projects intend to improve energy efficiency across retrofitted systems in buildings and industrial facilities.
The 2017 U.S.-China Energy Performance Contracting (EPC) pilot projects were formally recognized by DOE Acting Assistant Secretary for Energy Efficiency and Renewable Energy Daniel Simmons and China's National Development and Reform Commission (NDRC) at the 8th annual U.S.-China Energy Efficiency Forum (EEF) in Denver, Colorado. The EEF, which is organized by DOE and NDRC, brings together government, industry, and non-governmental leaders from the United States and China to highlight cooperative efforts, including energy performance contracting.
Nine EPC pilot projects were recognized for using a combination of innovative financing models, international performance measurement and verification protocols (IPMVP), integrated systems approaches, and achieving at least 20% energy savings building-wide or at least 1,000 metric tons of coal equivalent (TCE) across retrofitted systems in industrial facilities. This year's projects continue to diversify in building use—they include commercial buildings, industrial facilities, a power plant, medical facilities, and a university, across nine cities in China. The nine projects represent a total investment of $14.5 million (96.8 million CNY) in energy-saving measures.
There are now 21 U.S.-China EPC projects dating back to the program's inception in 2015. Earlier this year, in the release of the "Evaluation of Energy Performance Contracting Pilots: A Promising Way to Foster Deep Energy Savings in China," it was calculated that the 2015 and 2016 EPC pilots attracted $135 million (879 million CNY) in investment and are projected to save 67,000 TCE in energy per year.
2017 Pilot Projects
Glumac Inc. and Warmland Energy Service Co., Ltd.: In this energy service agreement to retrofit the Mercedes-Benz Arena Shanghai, Glumac has partnered with Warmland and provided a range of services, including utility bill auditing, building system diagnostics, energy auditing, project and construction management, and providing technologies and equipment from the United States. This project is expected to save 25% energy compared to its original annual energy use, totaling 1,014 TCE saved per year.
Schutte & Koerting, Uni-rising Technology, and Shanxi Zhangze Electric Power Energy Saving Tech: This is a combined heat and power (CHP) retrofit to the Shanxin Zhangdian Guodian Wangping Power Plant. Schutte & Koerting is providing a customized thermocompressor for the plant's exhaust-steam heat supply system and technical assistance. The whole power plant retrofit is estimated to reduce 155,000 TCE per year, of which 36% is attributed to the thermocompressor. This project is also unique in its combined financing method with the energy service company's own fund and secured financing.
Sparkles International Development Corp. and SIEDAY New Energy Efficiency Technology Co., Ltd.: Sparkles International serves as a consultant in an energy service agreement contract between SIEDAY and Jinghuitong Cultural Industry Development Co., Ltd. to retrofit HVAC, space heating, and hot water systems. Sparkles International supports SIEDAY in energy performance examination and data analysis, retrofit plan proposal, procurement and testing of equipment, and supervision and monitoring. The energy saving from this project is projected to reach 41%.
Carrier, U.S.-China Green Fund, and East Low Carbon Technology: Carrier by United Technologies is partnering with East Low Carbon on an EPC retrofit project to the Crown Plaza Huizhou. The retrofit systems are lighting, chiller plant, boiler, laundry dryer, cooking utensil, and centrifuge frequency conversion control system. The energy savings of this project is estimated to be 21% compared to its original annual energy use. The U.S.-China Green Fund has become a controlling shareholder of East Low Carbon, bringing more U.S. technology, products, and other resources to the company to provide more comprehensive solutions to its clients.
General Electric and Liling Huaxin Insulator Technology Co., Ltd.: This project is part of GE's Green Supplier Initiative, which aims to help suppliers reduce energy consumption through collaboration with leading technology companies, financiers, and energy service companies. This project includes retrofits to lighting and water treatment systems. The project implements digital transformation for furnace system and utilizes automatic handling technique. This project is expected to save 21% of energy consumption, totaling 2,852 TCE reduced per year.
Ingersoll Rand and ECOSO Co., Ltd.: Ingersoll Rand is working with ECOSO on the retrofit of CITIC Discastal Co., Ltd. This project is anticipated to produce energy savings of 30% compared to the original annual energy use level through retrofits to air compressor system, motor system, and co-generation system.
Johnson Controls Inc. and Qilu Antibiotics Pharmaceutical Co., Ltd.: Johnson Controls Inc. signed a guaranteed savings contract with Qilu Antibiotics Pharmaceutical for retrofits to optimize control and energy management system, and chiller and free cooling system. The project will use IPMVP Option B to measure and verify its estimated 491 TCE of energy savings per year.
Solatube CECEP Daylight Tech. and Xiamen Jinmin Energy Conservation Tech.: Solatube is one of the suppliers of a shared savings EPC project to retrofit the Xiamen University of Technology. The retrofit systems are lighting, HVAC, water heater, and an energy consumption monitoring system. Solatube provides tubular daylighting devices in this project. The energy savings of this project is estimated to be 25% compared to its original annual energy use.
Trane and China Southern Power Grid Synthesis Energy: Trane is partnering with China Southern Power Grid Synthesis Energy on an energy service agreement to retrofit the Guangzhou Women and Children's Medical Center Zhujiang New Town. The retrofit systems are air-conditioning, hot water, lighting, and partial measurement system. The energy savings is anticipated to be 23%. The project will be measured and verified using International Performance Monitoring and Verification Protocol (IPMVP) Option A.
DOE's Office of Energy Efficiency and Renewable Energy supports early-stage research and development of energy efficiency and renewable energy technologies that make energy more affordable and strengthen the reliability, resilience, and security of the U.S. electric grid.