GROOM ENERGY SOLUTIONS, INC. DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFICIENCY TECHNOLOGIES Making Parking Garages more efficient

GROOM ENERGY SOLUTIONS, INC.

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFICIENCY TECHNOLOGIES

Making Parking Garages more efficient AND Environmentally Friendly

Making Parking Garages more efficient AND Environmentally Friendly

Wisconsin Parking Association

November, 2008

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES

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AgendaAgenda

Climate Considerations

Cost Considerations

Current Energy Savings Technologies

Future Energy Savings Technologies

Case Study

Q&A


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Groom Energy SolutionsGroom Energy Solutions

Provides a full spectrum of renewable and energy efficiency technologies

and services to commercial and industrial companies nationwide. Climate Strategy consulting

Comprehensive energy and environmental assessments

Practical solutions through turn key installation across the US

Financing and Maintenance offerings


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GES Solution OfferingsGES Solution Offerings

Comprehensive Energy AssessmentsEnergy Efficiency Renewable Energy

Lighting

HVAC

Power Factor Combined Heat/Power

Energy Commodity

Demand Response

Solar Thermal

Daylight Harvesting

Solar Electric

Motor/Drive/Compressors Distributed Generation Wind

Financing Services

Groom Energy Climate Strategy

Maintenance Services

Research & Development

Turn Key Rollout Services


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Climate and Emissions ConsiderationsClimate and Emissions Considerations

GHG emissions in 5 major categoriesCO2 – Carbon Dioxide 85%Methane – 21 times more harmful than CO2 8%NO – Nitrous Oxide 5%Fluorocarbons – Manufacturing process byproductSulfur Hexafluoride – Manufacturing process byproduct

The leading emitter of CO2 – Electricity generating Power PlantsPredominantly coal burning

Carbon Dioxide is thought to be the leading contributor to GHG and Global Warming


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Environmental ProgramsEnvironmental Programs

Programs:

Carbon footprint reductionClimate Registry

EPA’s Climate Leaders

Energy Efficiency

Energy Star Building Rating

Massive Marketing Value

Customers prefer Green

LEEDExisting Building


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Electricity Demand and Prices Electricity Demand and Prices

Electricity prices have increased in all regions by an average of 6.5% per year.

Energy Demand is Skyrocketing •Oil demand will increase by 50% from ’02 to ’30•Electricity demand is growing 30% faster than supply

Electricity Costs are predicted to escalate

•Fuel prices for natural gas have increased over 300% since 1999. Edison Foundation.

•Coal is plentiful but dirty•Coal demand has increased by 20% in the past 2 years. Brattle Group.


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Legislative activityLegislative activity

Legislative drums are beatingStrong Economy and Climate Protection Act

2006 Feinstein (D) Mandatory Cap and Measurement Requirements

2008 Liebermann Warner Act (in committee) President elect Obama strongly supports cap and trade Measurement>Regulation>Reduction

Multiple Incentive and Support Programs Passed with the Economic Stimulus act

The perfect storm for ever escalating electricity prices and increased GHG reporting requirements.


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Energy use in Parking GaragesEnergy use in Parking Garages

Most garages run 24/7/365Major Consumers of Electricity

LightingHVAC – Fans (mostly below ground)

Variable Cost BreakdownLabor/ManagementElectricityMaintenance

How much electricity does an average garage consume?$115,000 (@$.12/kWh)950,000 kWh500,000 square foot above grade garage


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Ventilation Systems in Today’s GaragesVentilation Systems in Today’s Garages

Two types of code requirements for ventilation24/7Sensor activated

Ventilation standard - ASHRAE Standard 62

Most ventilation fans run at full speed 24/7/365Regardless of requirements

Volume of AutomobilesAmount of CO emitted

Energy Efficiency measures to considerVariable or multi-speed motorsSensing technologies that monitor CO space by space

Applies the appropriate CFM to the correct location


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Lighting in Today’s GaragesLighting in Today’s Garages

Today’s market Mostly sealed/gasketed HID based systems

Metal Halide High Pressure Sodium

Limited sealed & gasketed fluorescent linear fluorescent installations

Market Trends While most Industrial and Commercial facilities have retrofitted away from HIDs

to fluorescents, most garages have not made this transition Issues:

ROI under 2 years required Performance in hot and cold temperature zones Perception about lamp failure and color rendering How long till LEDs are economically viable?

Energy Efficiency measures to consider Retrofit to more energy efficient systems Outsource/bundle in maintenance – Performance Contracting


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High Efficiency Lighting OptionsHigh Efficiency Lighting Options

Lamp style/types available Fluorescent Vapor Tight Fixtures HID pulse start Induction lamp based systems LEDs Compact Fluorescent (PL) Retrofit Kits

Each have positives and negatives Lamp life Energy savings Capital cost Maintenance Quality of light Cold and hot weather performance


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Renewable Applications to ConsiderRenewable Applications to Consider

Rooftop mounted Wind

Mounting to parapet wall of garage structure

Boston Logan Airport Deployment

20 1kw turbines deployed March 2008

100,000 kWh annually displaced

Solar Photovoltaic systems

180 – 200 watt panels per section

3x5 feet per panel

Kwh produced by PV panels,

integrated into buildings electrical

infrastructure


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Future ApplicationsFuture Applications

Photovoltaic Shade structures Top floor retrofit or new build Heavy incentives Green MarketingPlug-In Hybrid Stations Charge or sell back kWh from

battery charging stations Mfr Products Rolling Out

Daimler Sprinter, Chevy Volt, Toyota Prius PI

Wal Mart support "there is a place for Wal-

Mart in the hybrid electric or plug-in electric car market“ Lee Scott

New Revenue Opportunity


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Energy Efficiency Incentives Energy Efficiency Incentives

Local Utility Rebates (Lighting and Fan Motors) Regional in Nature, mostly in deregulated markets Can represent up to 50% of the entire cost of a project Documentation is the key!

Federal EPAct 2005 Tax Incentive (Lighting) $.60/sq. ft. LPD, Bi-Level Switching, IES Light Levels Tax Deduction Free riding 2 Big Issues

Design for Success – Chose a knowledgeable provider Memorialize the correct documentation

“Designer” designation for government applicationsFederal Economic Stimulus Act 2008 (All Capital Projects)

Projects enjoy 50% 1st year depreciation Only for projects completed in 2008

Demand Response participation $ annuity for commitment to reduce load during “events”


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Renewable Energy Incentives Renewable Energy Incentives

Local/State Clean Energy Fund

Incentives available in certain states such as CA, NY, NJ, CT, MA

Newly developing incentive programs in many other states

$1 to $4 per watt

Federal EPAct2005

30% Tax Credit for solar and wind applications

Extended for 5 years

2008 Economic Stimulus Act

Accelerated depreciation for 50% of the value of capital projects

Set to expire at the end of 2008

Renewable Energy Credits (RECs) Credit for 1 mega-watt hour of certified renewable energy produced

Currently trading at approx. $30/REC

Firms will forward buy 7 years of RECs


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FinancingFinancing

Traditional Energy Efficiency Options Outright Purchase Leasing

Operating lease Finance lease

Outsourced Performance Contracts Guaranteed savings No capital outlay No maintenance costs Multi-year commitment

Power Purchase Agreements “Rent your rooftop” by buying power from renewable sources with long

term purchase contracts Buy power at a discounted rate for a given period of time


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Lighting Upgrade Case Study – Initial systemLighting Upgrade Case Study – Initial system

Current technology

410 – 175 MH (215 total watts) lighting fixtures

10,000 hour rated life (1.14 years)

20 – Incandescent Exit Signs

2,000 hour rated life (2.7 months)

400,000 square feet running 24/7

Annual Emissions

1,607,846 pounds of CO2

10,540 pounds of SO2

$113,845 Annual Cost of Lighting - 948,708 kWh


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Lighting Upgrade Case Study - IssuesLighting Upgrade Case Study - Issues

Cold weather location Linear Fluorescents were not considered – poor cold weather

performance

Constant Maintenance of Exit Signs Liability concern

Frequent lamp replacement Low life expectancy

Vibration from snow plows and traffic

Immediate Cash Flow required


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Lighting Upgrade Case Study - TechnologyLighting Upgrade Case Study - Technology

Upgraded Existing fixtures to:

410 – 93 watt 4 pin hi amalgam fluorescent

20,000 hour rated life (2.3 years or 2x previous)

20 – LED screw in retrofits

50,000 hour rated life (5.7 years or 20x previous)


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Lighting Upgrade Case Study – Financial ImpactLighting Upgrade Case Study – Financial Impact

$75,637 in annual energy and maintenance savings

$24,600 Utility Incentive dollars received

$8,647 EPAct2005 bottom line savings

$108,884 Total First Year Savings

Project Return on Investment 10 months

Added Positive Environmental ImpactAdditional Carbon Credit opportunity of $2,500 per year

Annual Emissions From 1,607,846 to 691,984 pounds of CO2

From 10,540 to 4,536 pounds of SO2



T H A N K Y O U !

For more information or for a copy of this presentation please contact:

Eric Steele

Groom Energy Solutions

[email protected]

(508) 465 0154



AppendixAppendix


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Environmental Hype or Reality?Environmental Hype or Reality?

The Arctic Ocean could be ice free by 2050.Arctic Climate Impact Assessment. 2004.

Temperatures are rising. Of the 20 hottest years in recorded history, 19

have occurred in the past 20 yearsNational Geographic Study 2006

Global Warming is a reality, and humans are contributing the largest

portion of GHG.

Intergovernmental Panel on Climate Change


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Air and Water in PerspectiveAir and Water in Perspective

The Blue Ball represents all the water (fresh and salt) in the worldThe Pink Ball represents the atmosphere that surrounds the earth


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Environmental ImpactEnvironmental Impact

Sea levels around North America

are rising .08 -.12% per year

(Exception is Alaska where the land

is rising)

Temperatures around the globe are

rising

Man-made or natural?


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Case StudyCase Study

Lighting

Current technology

410 – 175 MH (215 total watts) lighting fixtures


20 – Incandescent Exit Signs

2,000 hour rated life (2.7 months)

400,000 square feet running 24/7

Annual Emissions

1,607,846 pounds of CO2

10,540 pounds of SO2

$113,845 Annual Cost of Lighting - 948,708 kWh


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Lighting

Performance Issues

Cold weather location

Linear Fluorescents were not considered – poor cold weather

performance

Constant Maintenance of Exit Signs

Liability concern

Frequent lamp replacement

Low life expectancy

Vibration from snow plows and traffic

Immediate Cash Flow required


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Upgraded Technology

410 – 93 watt 4 pin hi amalgam fluorescent


20 – LED screw in retrofits


Annual Emissions

691,984 pounds of CO2

4,536 pounds of SO2

$48,933 Annual cost of lighting – 407,778 kWh


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Case Study Upgrade ImpactCase Study Upgrade Impact

Economics

Cost Savings

$75,637 in annual energy and maintenance savings

$24,600 Utility Incentive

$8,647 EPAct bottom line savings

$108,884 Total First Year Savings

Carbon Credit opportunity of $2,500 per year

Return on Investment 10 months


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High Efficiency Lighting OptionsHigh Efficiency Lighting OptionsFluorescent Vapor Tight Fixtures

Positives Good color rendering Long life Good energy savings

Negatives Costly installation and expensive waste Poor temperature dynamics (hi and lo temps)

PL based Retrofits Positives

Inexpensive Good color rendering Long life Good energy savings Excellent temperature dynamics

Negatives Not possible for all applications


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High Efficiency Lighting OptionsHigh Efficiency Lighting Options

Induction lamp based systems Positives

Excellent life expectancy Good energy savings Good color rendering

Negatives Costly and expensive to install Very poor reliability

LEDs Positives

Excellent life expectancy Tremendous potential for future performance Good color rendering Good low temperature performance Directional light characteristics

Negatives Costly Marginally efficient right now

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GROOM ENERGY SOLUTIONS, INC. DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFICIENCY TECHNOLOGIES Making Parking Garages more efficient