Thailand Chiller Replacement Project

Viraj Vithoontien8th Financial Agent Workshop

Washington, DC15 April 2004

Objectives

• Improve energy efficiency leading to reduction of greenhouse gas emission in the building chiller sector;

• Reduce consumption of ozone depleting substances (ODS)

Strategy

• Reduce cost of capital;• Remove perceived technology risk;• Demonstrate financial and technical

viability of building chiller replacement.

Basic Information

• MLR is about 6%• Interest Rate charged by FA was initially 4.5%• Cost of Energy is 2.2 Baht/kWh or $0.026/kWh• Total funding provided by GEF and MLF is about

$ 5 million• Targeted number of units to be replaced: 24 Units

with an average cooling capacity of 500 TR (tons refrigeration)

Eligibility Criteria

• Existing CFC centrifugal chillers;• Power consumption higher than 0.8 kW/TR• Cumulative operating hours of not more

than 15 years;• Priority given to chillers with cooling

capacity of 250 TR or higher.

Selection Process

• Pre-screening;• Free power audit;• Technical appraisal;• Financial appraisal;• Contracts awarded and signed;• Installation, commission, and power measurement;• Monitoring for 2 years.

Specific Requirements

• Disposal of existing CFC chillers;• Maintenance contract for 2 years;• Data logger.

Output

• More than 40 building chillers met all technical requirements;

• 29 building chiller replacement proposals passed technical and financial appraisals;

• Contracts were signed for 17 units;• All 17 units were installed and

commissioned by September 30, 2003.

Output 1 (cont.)

• Average energy saving rate is 0.38 kW/TR in comparison with the target of 0.27 kW/TR;

• Average IRR is 33.8% against the target of 15%

• Estimated energy savings are 15,502 MWh/year against the target of 14,400 MWh/year

1 Based on Progress Report dated September 30, 2003.

Output 1 (cont.)

• Estimated carbon emission reduction is 58 ktC (for the period of 17 years) against the target of 53 ktC;

• Estimated CFC emission reduction is 38.6 ODP tons against the target of 20.7 ODP tons.

Barrier Removals

• According to the chiller industry in Thailand, the replacement market of CFC chillers was virtually non-existence prior to the inception of the Project;

• Currently the replacement market accounts for almost half of one of the chiller suppliers (about 60 units per year).

Replicability

• After the preparation and implementation of this project, Department of Alternative Energy Development and Efficiency (DEDE) added building chillers as eligible equipment to be financed by the two Government financial assistance programs:– 30% grant program with max. grant amount of

2 million Baht;– Similar loan program with interest rate of 4%.

Replicability (cont.)

• In addition to the 17 units replaced under the GEF/MLF funded project, there are other 34 chillers financed by building owners’ resources or by resources from the other two programs of the Government.

• In total, there were 51 chillers replaced as of September 30, 2003.

• Eight commercial banks are now actively working with their clients to promote the energy efficiency programs in which building chiller replacement is qualified.

Case StudyCase Study““Thai CRTThai CRT””

•• CFC Chiller ReplacementCFC Chiller Replacement•• Measure current efficiency Measure current efficiency

of existing chillerof existing chiller•• Submit new chiller proposal Submit new chiller proposal

including energy saving including energy saving comparisoncomparison

•• Installation&commissioningInstallation&commissioning•• Keep energy saving recordKeep energy saving record

Project DetailsProject Details•• Existing chiller data is 950 ton Existing chiller data is 950 ton

@ @ 0.8212 kW/Ton0.8212 kW/Ton•• New 950New 950--ton NONton NON--CFC CFC

chiller with high efficiency chiller with high efficiency @ @ 0.580 kW/Ton0.580 kW/Ton

•• Total Investment cost is Total Investment cost is 10 MB10 MB

•• Expect monthly saving is Expect monthly saving is 245,000 Bath and payback 245,000 Bath and payback period within 3.8 years. period within 3.8 years.

CVHG 1067

CVHG 1067

CentraVac Part Load Performance

0.550.600.650.700.750.800.850.900.951.001.05

0 10 20 30 40 50 60 70 80 90 100

%Load

kW/Ton

CVHG 1067

Capacity of ChillerTONS

Time0

200

400

600

800

1,000

1,2000:

001:

303:

004:

306:

007:

309:

0010

:30

12:0

013

:30

15:0

016

:30

18:0

019

:30

21:0

022

:30

Project: Thai CRT

Project: Thai CRT

0

100

200

300

400

500

6000:

001:

303:

004:

306:

007:

309:

0010

:30

12:0

013

:30

15:0

016

:30

18:0

019

:30

21:0

022

:30

Energy of ChillerKW

Time

Project: Thai CRT

Performance of ChillerKW/TON

Time0.000.100.200.300.400.500.600.700.800.901.00

0:00

1:30

3:00

4:30

6:00

7:30

9:00

10:3

012

:00

13:3

015

:00

16:3

018

:00

19:3

021

:00

22:3

0

ResultsResults

•• Average 24 hrs operation of Average 24 hrs operation of new chiller is 900 tons new chiller is 900 tons @ @ 0.56 kW/Ton .0.56 kW/Ton .

•• Actual monthly savings is Actual monthly savings is 318,000 bath with shorter 318,000 bath with shorter payback within 3.0 years. payback within 3.0 years.