Buy now, pay later
While typical homes and businesses have only limited scope for conserving energy, big energy consumers, such as those in the service and manufacturing sectors, can really benefit from a professional evaluation.
According to the Ministry of Economic Affairs' Bureau of Energy, the energy consumption of Taiwan's service sector increased by an average of 4.2% per annum from 2001 to 2006, faster than the manufacturing sector's 3.7% annual increase. This figure has made the convenience stores located on virtually every corner targets for consultations.
In 2006, the Bureau of Energy reached a voluntary energy conservation agreement with five convenience store chains, including 7-Eleven, FamilyMart, and HiLife, which together have some 8,126 outlets in Taiwan. Under the agreement, the stores will keep their signs and outdoor lighting off during the day, reduce their outdoor lighting by half at night, replace their ceiling lights with energy-saving T5 fixtures, set their thermostats to 26°C, install LED lighting on their refrigerated shelves, and put in air-conditioners with variable-frequency drives. The upgrades will cost a total of NT$1.8 billion over three years, but will save NT$1 billion annually in electricity costs, repaying their investment in less than two years.
After signing the agreement with the convenience stores, the bureau approached other firms and institutions in the service sector with the contract, specifically those that deal with large numbers of people and use large amounts of energy to heat water and run air conditioners-hypermarkets, hospitals, hotels, department stores, malls, and supermarkets.
He Yuequan, director of TESA, notes that while green lighting is the quickest route to energy savings, companies and institutions that use boilers to heat a great deal of hot water-e.g. textile dying and finishing firms, hotels, hospitals, and steel mills-have the greatest potential to reduce their energy use.
Evergreen Sky Catering, located near the Taoyuan International Airport, is a case in point. The company provides 220 tons of hot water per day to its kitchens and employee housing. It used to heat this water in two diesel-fired boilers, and paid through the nose when international oil prices rose. (An index of the fuel cost to heat 1,000 liters of water that assigns electricity a baseline score of 100, scores petroleum at 97, diesel at 77, and a heat pump-by far the cheapest-at just 23.)
Last April, Evergreen Sky Catering began replacing its boilers with heat pump systems. Heat pumps are a bit like air conditioners in that they use a refrigerant to absorb heat energy. The pump passes the refrigerant through a compressor, releases it, and then delivers the heat to the desired location. Evergreen saved NT$5.05 million in fuel costs in the year after its installation of the pumps, and recovered all of the project's costs in just 1.1 years.
Some energy conservation projects are incredibly expensive. In cases in which the high cost of a project gives owners pause, they may be able to sign a "project performance guarantee" with an energy services company. Such guarantees obviate the need to pay for the project upfront. Instead, the company pays for the project out of its savings on its energy bills over the period specified in its contract with the energy services company, with the project's performance certified by an impartial third party such as the TGPF.
For example, Forever Friend Energy & Technology last year agreed to upgrade the water heating and air-conditioning systems at Taichung's Freshfield Resort and Conference Center. The project, which cost roughly NT$50 million, is expected to save the resort NT$8.8 million per year on its energy bills. Under the agreement the two companies signed, the resort will pay 80% of the project's fuel savings over the next seven years (roughly NT$7 million per year) to Forever Friend. It will keep the remaining 20% itself.
TESA estimates that approximately 60% of domestic energy conservation projects utilize this kind of payment model and believes that it has been very helpful to the industry.
The green-collar workers diagnosing the energy ills of Taiwan's communities and businesses are at the forefront of environmental protection efforts. In the photo, ITRI's Energy Conservation Vanguard is checking out a cooling tower belonging to the operator of a hot spring spa.