HAESCO Newsletter 2015

Kung Hei Fat Choi

Wishing all our friends and colleagues a happy Chinese Lunar new year
and a prosperous year of the goat – Kung Hei Fat Choi!!

Diary: MIECF 2015

The 8th annual MIECF will be held in Macau 26-28 March 2015. Exhibitors
can invite ‘hosted buyers’ programme, where Macau SAR will host
qualified buyers to attend the event and provide hotel accommodation.
link: http://www.macaomiecf.com/miecf2015/en/

Diary: Eco Expo Asia 2015

Its never ever to early to plan ahead, mark your diary for Hong Kong’s
primary environment event, it will take place at Asiaworld Expo on 28-31
October 2015.

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Diary: Heads Up

Korea energy exhibition will be held on 17-20 Nov 2015. Visit
http://www.energykorea.or.kr for more information.
The European Chamber of Commerce are planning to organise an Energy
efficiency seminar in 2015, date to be announced.

Policy Address 2015

The HKSAR 2015 policy address promised little for the energy efficiency
sector except Government buildings, where they plan to lower energy
consumption by 5% by 2020 (1% per year) and you’ll probably agree a
meagre target, but imagine the possibilities if Hong Kong Government
adopted the ESCO model! Furthermore, there is a key housing issue, and
the Government is promising to provide more housing but it seems the
energy and environmental impacts were so how sidelined. Additional
housing, and promised new towns will increase the overall energy
consumption and the resultant externalities.

Hi-Tech Advertising

Hong Kong is known as a shopping paradise and vendors are eager to grab
your attention, so advertising light boxes is big business. Traditional
boxes rely upon row upon row of bare fluorescent lamps jammed into
an enclosure to illuminate the sign and you don’t need to be an expert
to recognise the ‘stripped’ effect easily. MRC Technology has developed
an energy efficient light box and more than 600 have already been
installed in Hong Kong’s MTR stations. The MRC design reduces the number
of lamps from 20, down to single digits, and is finished with a
recyclable self diffuser that has demonstrated energy saving of 50%.
Visit http://www.mrct.com.hk

Commercialisation

The swift adoption of LED type lighting has been surprising in this part
of world, no doubt it was a result of pressure on organisations to
manage costs, but also being located close the world’s LED factory does
not hurt either. However, the elephant in the room, LED waste, has yet
to be addressed, most countries struggle to handle mercury from
traditional lamps, how will LED waste be treated?

International Interest in Asia Peaked?

International companies, in particular USA companies have been
seeking ESCO opportunities in Asia, but 2014 witnessed a definite
declining interest. Educating the decision makers, owners, and
financiers will be needed to grow the ESCO sector.

ESCO Business Model

Businesses looking to lower their carbon footprint and reduce running
costs sometimes doubt the effectiveness of the ESCO model, it is not a
surprise really, the ESCO model is still new in Asia, and totally
different from the traditional lowest bid model. To help overcome that
obstacle one firm offered a pilot demonstration, the results were so
successful the buyer signed the order to PO immediately.

RTTV

Last September 2014, the Hong Kong Government announced the first
standard for residential buildings, promulgated under APP-156, it is
effective for all private residential buildings submitted or resubmitted
to BD from 1 April 2015. The Residential Thermal Transfer Value (RTTV)
is similar to OTTV for commercial buildings introduced in 1995, and also
limited to governing the building envelope. If you are familiar with
Government standard practice you will not be surprised to learn that the
initial RTTV target is low, new residential building walls shall not
exceed 14 w/sqm, the roof 4 w/sqm, and the OTTV(RRF) for towers shall
not exceed 24 w/sqm, but at least it is a starting point. In the future
the Government will surely tighten the standard.

HAESCO NEWS

HAESCO members are encouraged to tell us about your success stories! A
short paragraph or two, with a great photograph helps spread the word
about your business.

paid from savings, Hong Kong, HAESCO

Crude Oil

The low price of crude oil, hovering around US$ 50 per barrel at the
moment, is here to stay analysts say, whether or not this will impact
the drive for energy efficiency is difficult to judge.

Street Lighting Blues

There is increasing interest for town and cities to adopt LED lighting,
many opt to use the ESCO model to replace ageing street lighting
systems. For ESCO’s any municipality is an attractive customer. However,
for those institutions typically tendering everything from pencils to
properties to lowest bidder it is new ground, the ESCO model presents a
new challenge. There are no rules, ESCO’s may offer any terms they so
wish. And if that results in disputes it could damage the whole industry.

Marketing

Only HAESCO members are entitled to place a banner advert on the
front page of the HAESCO website, the advantage you will reach parties
interested in your business! Don’t delay Apply today! visit http://www.haesco.hk/ratecard.html

Greenware

Globally electric motors account for 60% of all industrial electricity
consumption, so energy efficient AC motor controls from Greenware
Technologies lowering the running cost and extending the service life of
AC motors is welcome. Industry may have moved, but electric motors are
commonplace used in fans and escalators, for the latter Greenware has
demonstrated energy savings of 20%. Visit http://www.greenware-technologies.com/

Energy Performance Contracting

Energy Performance Contracts (EPC) and Energy Services Company (ESCO)
have been successfully applied in the Europe since the 1980s. However,
the market here in Asia remains underdeveloped compared with both
Europe and North America. The EPC model is internationally recognised
as a guaranteed, cost effective procurement method for reducing the
operating costs and environmental impacts of buildings. It is one of
HAESCO’s objectives is to promote EPC’s, ESCO’s and address the
key barriers including financial, and the woeful lack of awareness.

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An EPC requires an Energy Services Company (ESCO) to provide the
solution, and in an ideal world that might include a comprehensive
whole building retrofit, covering the replacement of ageing engineering
systems for example chillers, boilers, lighting, ventilation, automated
controls, as well as the integration of energy management systems.
Having said that, an ESCO may equally apply a lighting retrofit alone.

Having an ESCO taking “turn‐key” responsibility for the project
is advantageous because not only will they cover all aspects of the
project from start to finish, they will the guaranteed energy savings,
and that in turn that also contributes to the development of the local
job opportunities.

Importantly, the ESCO will assume all the risk, ensuring that the
projected energy and operational cost savings materialise and are
preserved over time. If those promised energy savings are not realised,
the ESCO compensates to the building owner.
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