Hestrainermanualannexes211final by Epsilon Energy Professionals

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ENERGY EFFICIENCY AND RENEWABLE ENERGY APPLICATIONS IN THE HOTEL SECTOR

Analysis on Energy Use by European Hotels

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Legal Disclaimer The sole responsibility for the content of this publication lies with the authors (the Hotel Energy Solutions official partners). It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein. Please cite this publication as Hotel Energy Solutions (2011), Energy Efficiency and Renewable Energy Applications in the Hotel Sector, Hotel Energy Solutions project publications First edition: 2010 Revised version, July 2011 Copyright notice © Hotel Energy Solutions (2011) Reproduction is authorised, provided the source is acknowledged, save where otherwise stated. You may copy, download or print Hotel Energy Solutions (HES) content for your own use and you can include excerpts from Hotel Energy Solutions (HES) publications, website and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that the suitable acknowledgment of Hotel Energy Solutions as source and copyright owner is given. Where prior permission must be obtained for the reproduction or use of textual and multimedia information (sound, images, software, etc.) such permission shall cancel the abovementioned general permission and clearly indicate any restrictions on use. All requests for public or commercial use and translation rights should be submitted to icr-‐hes@unwto.org. Hotel Energy Solutions (HES) Project Basics Full name: Excellence in Energy for the Tourism Industry – Accommodation sector: SME hotels (EETI) Contract N°: IEE/07/468/S12.499390 Hotel Energy Official Partners

Project Supported by

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TABLE OF ANNEXES ANNEX II.

SUGGESTED COURSE AGENDA

ANNEX III.

TRAINING EVALUATION FORM

ANNEX IV.

THE EUROPEAN DIRECTIVE ON THE ENERGY PERFORMANCE OF BUILDINGS (EPBD)

ANNEX V.

EE AND RE TECHNOLOGIES FOR HOTELS

5.01 ENERGY EFFICIENCY (A) ENERGY SAVING LIGHT BULBS (B) LIGHTING AND OCCUPANCY-‐LINKED CONTROLS (C) REGULATION OF HEATING AND COOLING (D) AIR CONDITIONING AND VENTILATION (E) COGENERATION AND TRIGENERATION (F) WINDOW AND BUILDING INSULATION (G) BIOCLIMATIC ARCHITECTURE (H) ELECTRIC APPLIANCES WITH HIGH ENERGY EFFICIENT RATING (I) OTHER APPLIANCES 5.02 RENEWABLE ENERGY OPPORTUNITIES (A) SOLAR THERMAL ENERGY (B) SOLAR PHOTOVOLTAIC ENERGY (C) BIOMASS BOILERS (D) GEOTHERMAL ENERGY (GROUND SOURCE HEAT PUMPS) (E) MICRO-‐HYDROPOWER SYSTEMS (F) WIND ENERGY

8 8 10 13 15 20 24 30 35 37 39 39 47 51 54 60 64

ANNEX VI.

BEHAVIOURAL STRATEGIES AND CONSIDERATIONS

6.01 STAFF TRAINING 6.02 INFORMATION TO GUESTS

68 76

ANNEX VII.

7.01 7.02 7.03 7.04 7.05

FINANCING SOURCES FOR EE AND RE PROJECT FINANCING:

80 80 81 82 82

EQUITY LOAN PERFORMANCE CONTRACTING AND ESCOS SAVINGS GUARANTEE OPERATING LEASE

ANNEX VIII.

INCENTIVES FOR EE/RE APPLICATIONS

8.01 FEED IN TARIFF 8.02 ECO-‐LABELS AND CERTIFICATION SCHEMES FOR HOTELS

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82 82 85

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ANNEX IX. ANNEX X. ANNEX XI.

SHORT ENERGY AUDIT FORM CHECKLIST FOR ENERGY SAVING MEASURES IN HOTELS CREATING AN ENERGY SERVICE AGREEMENT

96 97

TABLE OF FIGURES Figure 1: Energy Performance Certificate Non-‐Domestic buildings Figure 2: Display Energy Certificate Figure 3: average overall efficiency of CHP vs. conventional systems Figure 4: Trombe wall. Figure 5: Example EU energy label for a washing machine Figure 6: Suggested information/training strategy Figure 7: Hotel’s ecological footprint analysis Figure 8: Actions to reduce the hotel’s energy consumption Figure 9: Suggested communication strategy

6 7 21 32 38 68 69 71 77

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ANNEX II.

SUGGESTED COURSE AGE NDA Workshop programme proposal Day:

Introduction and Objective • The HES project • The HES e-‐toolkit • Supporting material • Methodology of the manual • Recommendations for trainers • Resource material 2. Background information • Energy, Climate change and the hotel sector • EU directive on the energy performance of buildings • Energy use in hotels • Energy benchmark for hotels • HES e-‐toolkit benchmark 3. Basics • Defining EE and RE applications • Why invest in RE and EE • Understanding and reading energy bills 4. EE and RE technologies, Behavioural change • HES e-‐toolkit technical factsheets • EE technologies • RE opportunities • Behavioural strategies 5. Economic, Financial analysis • ROI e-‐toolkit • Return on investment analysis • Barriers and risk associate with investing in EE and RE • Financing mechanisms for EE and RE projects 6. Incentives • Feed in Tariff • Carbon financing • Carbon offsetting 7. Developing EE/RE projects • HES e-‐toolkit steps to develop EE and RE projects • Marketing hotel activities 8. Supporting material • HES –e-‐toolkit case studies • Useful links • Conversion factors 9. HES e-‐toolkit • Creating a project, questionnaire • Energy related reports • Energy solutions report • Carbon footprint report 10. HES e-‐toolkit (II part) • ROI Calculator 11. Closing • Feedback – impressions • Evaluation

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ANNEX III.

TRAINING EVALUATION FORM

Suggested evaluation questions are given below, but the trainer can decide to remove/add questions as required1. Name: Organization: Date of course:

a. Did the course meet your expectations? Yes No Somewhat Comments: b. Will this course help you carry out your job? Comments:

Yes No Somewhat

c. Were the course handouts adequate? Yes No Somewhat Comments: d. For each course session, please rate the quality of the session, if the topic was treated in sufficient detail and what was learned. 1 = Poor 2 = Moderate 3 = Satisfactory 4 = Good 5 = Excellent Session title Introduction -‐ Objective Background information Basics EE and RE , Behavioural change Economic, Financial Analysis Incentives Developing EE/RE projects HES e-‐toolkit

Quality of session 2 3 4 5

e. What can be done to improve the course? Please explain:

Treatment in depth 2 3 4 5

e. Would you recommend this course to others? Yes No Somewhat Comments:

Knowledge gained 2 3 4 5

Energizing Cleaner Production A Guide for Trainers, UNEP and InWENT, 2007

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ANNEX IV. THE EUROPEAN DIRECTI VE ON THE ENERGY PERFORMANCE OF BUILD INGS (EPBD) 2 The EPBD is reviewed to examine its potential impact on tourism certification. It is important to note that while EPBD is regulated at the EU level, only some articles are mandatory. Energy certificates are usually categorized as a voluntary instrument but are sometimes classified as market–based, which can lead to some confusion. Improvement actions related to energy certificates are voluntary. The European Directive 2002/91/EC (OJEC, 2003) on the Energy Performance of Buildings (EPBD) requires that all member states of the EU include the following in their legislation on buildings: 1. Minimum Energy Performance Standards o A methodology for calculating the energy performance of buildings o Minimum energy performance standards for new buildings and for large, existing buildings subject to major renovation o Energy certification of buildings 2. Energy Performance Certificates o Provided to prospective purchaser/tenant o Prominent display of the energy certificate in all public buildings and “institutions providing public services” -‐ i.e. hotels 3. Regular inspection of boilers, air-‐conditioning systems and assessment of heating systems with boilers that are more than 15 years old The European Directive on the energy performance of buildings (EPBD) requires that an energy performance certificate is made available when buildings are constructed, sold or rented out. The certificate has to be accompanied by recommendations for the cost-‐effective improvement of the energy performance. The calculation of the energy performance should be carried out according to a methodology based on a general framework set out by the EPBD. UK responses to the Directive on Energy Performance of Buildings An example of a national response to the Directive on Energy Performance of Buildings is the UK Government’s Energy Performance Certificate (EPC) (see figure 1). These EPCs give the energy rating of a building and must be produced by accredited assessors, accompanied by a report detailing recommendations as to how the EE of the building can be improved.

http://www.epbd-ca.org/

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Figure 1: Energy Performance Certificate Non-‐Domestic buildings3

Buildings are rated in bands from A to G, A being very efficient and G very inefficient, similar to the efficiency rating systems used for domestic appliances. The bands will vary according to building use. The calculation is theoretical and is intended to provide potential occupants with information about the EE of the building fabric, lighting, heating, cooling, and ventilation. EPCs are valid for a period of up to 10 years. Any improvement is done on a voluntary basis. Besides the EPC, the UK government has other certifications such as the “Display Energy Certificate” (DEC) which gives an operational rating (see Figure 2) conveying the actual energy use by a building, as opposed to an EPC which gives an asset rating demonstrating the intrinsic performance of the building. A DEC gives the energy performance of a building based on actual energy consumption and compares it with the consumption of the last three years. A DEC must be updated annually.

http://www.epcscommercial.co.uk/

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Figure 2: Display Energy Certificate4

http://www.commercialenergyperformancecertificates.co.uk/display-energy-certificates.htm

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ANNEX V.

EE AND RE TECHNOLOGI ES FOR HOTELS

5.01 E NERGY EFFICIENCY

(A) Energy saving light bulbs Lighting is one of the largest areas of electrical energy consumption in hotels, as in many other kinds of buildings. Depending on the category of hotel, lighting can account for 7% of total energy consumption and up to 40% of total electrical energy consumption.5 Lighting must provide adequate levels of illumination for hotel activity and create a pleasant environment and a sense of comfort throughout the building. The lighting levels necessary for each building zone are established in part by the lighting regulations of the particular country, and these levels should be reached by using the most appropriate lamps for each application. For reference purposes, installed power is 10-‐20 W/m2 for rooms and 15-‐30 W/m2 for general service areas, giving an energy consumption of 25-‐55 kWh/m2 per year.6 Several types of energy efficiency lighting and affordable lighting technology exist, such as compact fluorescent lights (CFL) and less powerful light-‐emitting diodes (LED). Table 1. Examples of standard efficiency upgrades:7 Initial situation

Possible upgrade

Incandescent lamps

Compact fluorescent lamps (CFL) (same light output but with lower Wattage)

Fluorescent tubes T8

More energy-‐efficient fluorescent tubes T5

Incandescent exit signs

LED exit signs

Only 20% of the energy for incandescent and halogen lights is converted to light; the remaining 80% is lost as heat. Efficient lights such as fluorescents, CFLs and LEDs are able to convert energy to light much more efficiently and with less lost through heat. CFLs use 4 times less energy than incandescent bulbs of the same luminosity, as well as lasting 10 to 15 times longer. They fit directly into both screw and bayonet fittings, utilising the same technology as a linear fluorescent light. CFL downlights (10–13w) use 4 to 5 times less energy and last up to 10 times longer than an inefficient halogen downlight (45–50w). Furthermore, replacing low voltage halogen downlights with CFL downlights will save an additional 8–10 watts per bulb, as a transformer is no longer necessary.8

CHOSE Project, Energy Savings by Combined Heat Cooling and Power Plants (CHCP) in the Hotel Sector. http://www.inescc.pt/urepe/chose/results.htm 6 Ibid. 7 From Key EE solutions for SME hotels – n°XIII, Energy saving light bulbs. Fact sheets HEC. 8 Clean Technology Applications in Tourism Accommodation, APEC Tourism Working Group. June 2010

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Fluorescent tube lighting (TL) is a very efficient way of lighting, but it isn’t always the right choice aesthetically. For areas of the hotel where the atmosphere should be warm and comfortable, a fluorescent tube is not ideal. Accent lighting is also very difficult using tube lighting. Another possibility is the installation of high-‐pressure sodium vapour (HPSV) lamps for applications where the lighting hue is not critical (such as outside). LEDs use 6 to 10 times less energy than an inefficient light and are available for an increasingly wide range of applications, including downlighting, floodlighting and decorative lighting. They are durable, with some manufacturers claiming a lifespan of 50,000 hours. Recommendations:9 How to proceed?

Practical information About its implementation:  Easiness: Easy (*)  Best moment: can be installed at any time.  Relevant initial situation: the hotel has no energy saving light bulbs. Indicative cost:  Compact fluorescent lamp: approx.15 € Indicative return on investment time:  <1-3 years Note that costs and payback periods may vary greatly depending on the local context and on the hotel initial situation.

The first step is to review existing lamps and bulbs in use in the different areas of the hotel (rooms, floor, restaurant, outdoor area, kitchen, back office, etc.).

For each of these areas, try to evaluate whether it is preferable to install energy saving light bulbs and/or lighting controls (solution n°XI). In case the hotelier plan to install an energy saving lamp together with a lighting control, it has to be chosen an energy-‐ efficient lamp that works with the lighting control the hotel plans to use (timing device or motion detector, for instance).

What are the criteria to consider when choosing an energy-‐saving light?

Choose equipment that suits the hotel’s needs: the needs and characteristics of the different hotel areas need to be taken into account. For instance, importance of lighting hue may vary from one place to another. Remember also that lighting levels necessary for each zone are established in the lighting regulations of each country. Attention should also be paid to switching cycles when the hotel wants to install the bulb in frequently used rooms, such as bathrooms.

Choose energy-‐certified products: in some countries, there are product certifications that indicate quality and energy savings, such as the Energy label in Europe (as defined in Commission Directive 98/11/EC). Buying labelled products (e.g. lamps with class A of the EU Energy label) is a good way to be sure the hotel is investing in the latest high-‐ performance equipment.

When willing to change from a conventional system to more energy efficient one, be

From Key EE solutions for SME hotels – n°XIII, Energy saving light bulbs. Fact sheets HEC

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sure that the bulbs match the hotel’s lighting devices. -

Topten is a consumer-‐oriented online search tool that presents the best appliances in various categories of products: www.topten.info/

About recycling - When energy saving lamps reach the end of their lifetime, it is important to have them recycled appropriately. This can be done by giving them back to the distributors or bringing them to an appropriate waste reception centre. (B) Lighting and occupancy-‐linked controls Potential savings can be achieved with lighting controls, or occupancy-‐linked controls. Lighting is frequently switched on unnecessarily, e.g. when there is sufficient daylight or there is nobody in the room. With manually operated systems in particular, lights tend to be left on needlessly. It is therefore highly recommended to make the greatest possible use of occupancy-‐linked controls. The principle of lighting control is to only light areas that are occupied or truly need light. This can only be achieved with technical measures, like automatic occupancy controls, see the next table: Table 2. Automatic occupancy controls Products available

Principle

Applications

Time control (timers)

Can switch lights on and off at pre-‐set times, each day

May be used in areas of regular usage

Occupancy (presence) sensor

Can switch on lights when movement is detected and switch them off after pre-‐set period of inactivity

May be used in areas of infrequent use by staff and public (such as washrooms in public areas, or sections of the property that are not much used during times of low occupancy)

Photocell control

Can switch or dim lights when there is adequate daylight available

May be used in rooms with natural light

Automatic control with key card

switch off all electrical appliances in guestrooms (except the minibar) when the guestrooms are unoccupied

for guestrooms

Lighting control can also be integrated in the Building Energy Management System (BEMS) of the hotel (if one is installed). Where applicable, it is recommended to adopt lighting zone control to optimize electricity use.

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For example, in some hotels the lighting Practical information inside the guest rooms can only be switched on when the guests are inside the room using a key card, and are switched off automatically About its implementation:  Easiness: Easy to moderate. when the guests leave the room, taking the  Best moment: when the hotel is being key card with them. renovated.  Relevant initial situation: the hotel has no lighting control. Recommendations for lighting controls10 Indicative cost:  Occupancy sensor: may vary from 75€ How to proceed? (automatic sensor for an incandescent lamp) to 125€ (for a fluorescent lamp and/or for a more complex system). The first step is to review existing lamps and Indicative return on investment time: bulbs in use in the different areas of the hotel  <1-8 years (rooms, floor, restaurant, outdoor area, Note that costs and payback periods may kitchen, back office, etc.). vary greatly depending on the local context and on the hotel initial situation. For each of these areas, try to evaluate if it is preferable to install energy-‐saving light bulbs and/or lighting controls. In case the hotel plans to install an energy saving lamp together with a lighting control, make sure that it chooses an energy-‐efficient lamp that works with the lighting control they plan to use and that the lifetime of the lamp is not influenced by extensive switching. This can be ascertained from the information provided by the manufacturer of the lamp. Key card systems Key card systems allow electricity to be switched off automatically when guest rooms are vacated, thus avoiding needless consumption of electricity (e.g. from TVs and lights). The principle of key card systems is as follows: when the client inserts the key card into the energy saving device while entering the room, electricity is turned on; when the client leaves the room and retrieves the key card, electricity is shut off. For this to function, the relevant electrical circuits of the guestroom need to be connected to the key card system. This has to be done by a professional electrician. Recommendations for key card systems:11 How to proceed? - It is possible to keep some electric appliances (like minibars) on even when the room is vacated. To do so, care must be taken when installing the key card system to ensure that different circuits are used for those specific appliances.

Key EE solutions for SME hotels. Lighting control – n°XII, Fact sheets HEC

Key EE solutions for SME hotels . Key card systems to switch off electricity in guestrooms – n°XI, Fact sheets HEC

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Automatic control of electricity in guestrooms according to occupancy can also be integrated in the Building Energy Management System (BEMS) of the hotel (if one is installed). In this case, the control of electricity is usually associated with the control of heating and air conditioning in the rooms. So when keys are handed in, the system shuts down heating and power systems.

When is it best to install a key card system? - Due to the wiring requirements to interface the key card system to the relevant electrical circuits of the guestroom, it is best to install a key card system when renovating the electrical circuits of the guestrooms.

EE and RE Applications in the Hotel Sector

Practical information About its implementation: • Easiness: Moderate (**). • Best moment: when renovating the electrical system of the guestrooms. • Relevant initial situation: the hotel has no key card systems for guestrooms. Indicative cost: • Varies. The final cost of the solution is very difficult to estimate because of the workforce’s costs (depending on parameters such as whether the hotel must close or not during the work, etc.) Indicative return on investment time: • may be less than 3 years (the larger the hotel, the shorter the pay back period) Note that costs and payback periods may vary greatly depending on the local context and on the hotel initial situation.

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Heating and cooling is generally the largest energy consuming activity within a hotel. To keep energy consumption levels low, it is necessary to regulate temperatures according to the actual needs and occupancy of the different zones of the hotel. In particular, careful control of the temperature in individual rooms is very important. Heating, commonly called “space conditioning” or “climate control”, can account for up to half the energy consumption in many hotels. Temperature control systems can reduce energy consumption from heating and cooling by reducing the level of air conditioning in a room when it is not occupied, keeping the temperature at a standby level so that it can be quickly restored to the normal level when needed. Autonomous control systems can save energy up to 20-‐30%. As the different areas in a hotel (guest rooms, meeting rooms, etc.) have variable and non-‐ concurring periods of occupation, the time during which they are in use is the most important factor with regards to energy consumption. When occupied, a guest room can be heated to 20°C (+/-‐ 2°C), but when unoccupied, the standby heating should be lower. Then, temperatures of 16 to 18°C are more than sufficient for quick restoration to be possible. In winter, it is even recommended that the temperature in rooms which remain unoccupied for a longer period of time be maintained with minimal heating at 12 to 14°C. The table below gives recommended temperatures according to occupancy:

Table 3.

Recommended temperatures according to occupancy

Heating/cooling regime

Temperature setting

Application

Normal heating

20-‐22°C

Occupied spaces

Low heating

16-‐18°C

Unoccupied for a short period

Stand-‐by heating

12-‐14°C

Unoccupied for a long period

Normal cooling

25-‐26°C

Occupied spaces

Low cooling

27-‐29°C

Unoccupied for a short period

Stand-‐by cooling

30-‐32°C

Unoccupied for a long period

Some technical solutions can help ensure appropriate regulation of temperatures:

Individual temperature control systems (e.g. thermostatic radiator valves) enable guests to regulate the temperature of hotel rooms according to their individual needs. Automatic control systems may also be used to switch heating and air-‐conditioning on and off in guestrooms. For example: o Occupancy-‐linked controls can be used to isolate guestrooms or automatically heat them to a “set-‐back” temperature as guests enter or leave their rooms, or when they check in at reception. o Automatic devices can be used to turn off heating and air conditioning when windows are open.

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Timers or programmers are quite suitable to areas like functional rooms and eating areas, where temperature rarely need to be kept at full comfort level. Programmable set-‐back thermostats (a combination of thermostat and timer) allow two or more temperature settings for times with lower demand, such as during the night or when rooms are unoccupied. They can be used in conjunction with occupancy sensors, so that thermostat settings are allowed to slip back a few degrees when an area is unoccupied.

Good management and housekeeping protocols are also key elements for appropriate regulation of temperatures. They include: - Manual temperature setting by housekeeping staff according to the actual occupancy of the different zones (when there is no automatic temperature control); - Appropriate allocation of rooms. In winter, heated zones should be more densely occupied. Recommendations:12 In case an accommodation has a heating system Practical information with individual radiators, thermostatic radiator About its implementation: valves can be easily installed by a technician. • Easiness: Moderate. • Best moment: when renovating the accommodation. Automatic control can be done either with an • Relevant initial situation: the hotel has independent regulation system in each room or no individual thermostatic control in with a central (computer) system. It can thus be guestrooms and/or the hotel has no integrated in the Building Energy Management automatic control of heating and air conditioning. System (BEMS) of the hotel, where one exists. If so, then it is recommended to adopt a heating Indicative cost: zone control system, where applicable, to • Varies. optimize heating and cooling use. Indicative return on investment time: • May be <1-3 years. About thermostats: Note that costs and payback periods may For an appropriate temperature regulation, it is vary greatly depending on the local context important to ensure accuracy of the thermostat, and on the hotel initial situation. good positioning of the thermostat in the room, and correct temperature setting for the upper and lower limits of the thermostat. Accuracy: 12

Key EE solutions for SME hotels Regulation of space heating and cooling– n°XVI.

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The temperature indicated on the thermostat dial should relate accurately to the temperature the thermostat is trying to achieve. The thermostat setting may drift over time and a temperature of 20°C might be as low as 18°C or as high as 22°C. That is why it’s worth checking the hotel thermostat by comparing the position of its temperature gage with the measurement of room temperature on a separate thermometer. Switching accuracy, related to the temperature difference when the thermostat switches air conditioning on and off, is also important. If this is too wide, the temperature in the building will fluctuate and energy will be wasted. Modern thermostats generally use an electronic sensor and are very accurate. Older thermostats rely on bimetallic strips and are less accurate. Position: For good temperature control, it is better not to install thermostats too close to the door. Also, make sure their position is obvious for the client, and provide simple instructions on how to set them. About thermostatic radiator valves: Thermostatic radiator valves are not very accurate and need to be adjusted quite regularly to give the best temperature. For more accurate control, groups of radiators on the same circuit can be controlled with one motorised valve linked to an electronic air thermostat. Make sure valves are easily accessible for guests and are working properly. Give some guidance notes in the room’s information pack. Also instruct cleaning staff to reset radiators to a preset level in preparation for new guests. About timers and programmers: Remember to use timers and programmers and to set thermostats most effectively. Take care to set systems regularly, paying particular attention to these settings before weekends, bank holidays, and time changes for daylight savings. (D) Air conditioning and ventilation

For air conditioning and ventilation of hotel areas, there are usually various units available. As the occupation of the various hotel areas varies, so do the comfort level required in each zone is and the corresponding energy load (which is affected by decorative lighting, heat losses, solar gains, etc). The heating, ventilation and air conditions (HVAC) installation has to be engineered to respond to these different needs. Depending on hotel conditions and requirements, air may be heated, cooled, humidified and/or filtered. Cooling, heating and humidification are generally done through a centralised station that generates heat and cold.

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Some typical applications in a hotel and their particular characteristics are:

Guest rooms: depending on the type of hotel and the environment, guest rooms are generally used primarily for relaxation and sleep. Comfort level requirements at night are lower than during the day, which should be taken into account when setting the HVAC parameters. Meeting rooms are generally used only during “office hours,” with HVAC set to provide comfort for people in a working environment. Restaurants are almost continuously occupied, except at night. HVAC are set to suit the comfort of people in a dining environment. Inside swimming pool, sauna and wellness areas: HVAC are set to control conditions of higher humidity. Comfort level is at a higher temperature than in guest rooms, but occupancy hours are different. Outside of opening hours, it is important to set HVAC to a lower level to reduce energy consumption.

The energy consumption within an HVAC unit is accounted for by the following main applications:

Heat, for heating the air; Cold, for cooling and drying the air; Electricity, to drive the fans; and Steam, to humidify the air.

Steam is very energy-‐intensive, so for HVAC installations it is very important to verify the need for humidification before steam is produced. Vapour is mainly produced electrically for this application. Some energy saving measures for HVAC systems in hotels (excluding building design considerations) include: - Installing frequency controllers on the fans; - Recovering heat from the extraction air; - Optimising the operating hours; and - Optimising the temperature and humidity. Ventilation systems are used to maintain optimal air quality in different areas. Poor ventilation can greatly reduce comfort levels, but excessive ventilation wastes energy. Improved management of ventilation can very often increase energy efficiency significantly. Controlled ventilation is highly recommended in hotels for the following reasons:13 - Air quality: the quantity of fresh air needed depends on room occupancy and on the 13

Key EE solutions for SME hotels efficient ventilation systems– n°XX

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activities that take place within the rooms (for instance, bathrooms require dependable air renewal). Air renewal should be adjusted accordingly. Reduction of heat loss: excessive ventilation should be avoided in cold conditions because it will result in substantial loss of heat. Ventilation may be responsible up to 15% of the heat losses in winter. Need for cooling in hot conditions: extra ventilation can be very useful at mid-‐season or at night during summer in order to keep the hotel cool and comfortable.

Various solutions exist for efficient ventilation; the most reliable ones (as of the time of writing) are demand-‐controlled mechanical systems. However, these systems are worth considering only if air infiltration at doors and windows is controlled in the first place. Non-‐mechanised and hybrid ventilation (which is partly mechanical, partly non-‐mechanical) may also be considered, but these generally do not offer the same level of control over ventilation as fully mechanised systems. What are the main existing types of mechanical systems? - Exhaust-‐only or supply-‐only ventilation systems. With these systems, only the air exhaust (or supply) is operated mechanically. In guestrooms, for example, air can be extracted mechanically from the bathrooms and supplied non-‐mechanically through openings in the room. Airflow can either be constant (without any possibility of adjustment) or adjusted using the technical mechanism described below. - Supply and exhaust ventilation systems. With these systems, two fans are used: one to bring fresh air in and another to send indoor air out. These systems offer better control over the ventilation rate by fully controlling air supply. Moreover, this type of configuration allows pre-‐heating of the incoming fresh air in winter if a heat recovery unit is placed on the outgoing air. This improves indoor comfort and contributes to the reduction of space heating needs. Although this system requires additional electricity consumption for the second fan, the energy savings that result from heat recovery generally exceed the additional electricity consumption. Furthermore, this system allows for extra ventilation at mid-‐season and at night during summer (if designed for high air flows), thus lowering the needs for active space cooling. - A thermodynamic machine (a small reversible heat pump) may be coupled with the ventilation system to provide enhanced air heating and cooling. This system is well suited to noisy environments (whereas natural ventilation or exhaust-‐only or supply-‐ only ventilation systems are not). Note that ventilation can be operated together with space heating and space cooling with “all-‐ air” central air-‐conditioning systems. What are the solutions available to adjust airflows to actual needs?

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Humidity control: air inflow and extraction units can incorporate humidity-‐sensitive technologies, using humidity as an indicator of rooms’ occupancy and pollution. When the air humidity of a room is high, the airflow is increased. Time programmers can be used to switch a ventilation system on and off at specific times. Presence detectors, such as CO2 detectors or movement sensors, can be used to switch a system on or off in direct response to room occupancy.

Table 4.

Recommendations on air renovation in hotels according to a sample number of persons per area.14 Hotel and Motels

Rooms (sing./double) Toilets Corridor Public areas Small meeting rooms Large meeting rooms Public toilets Restaurants Dining room Kitchen Cafeteria, Snack bar Bar

Foreseen persons in 100m2 5 5 32 75 150 107 75 21 107 160

Ventilation Air flow(m3/h per person) Minimum Recommended 12 17-‐26 34 51-‐85 9 12-‐17 12 17-‐26 26 34-‐43 26 34-‐43 26 34-‐43 17 26-‐34 51 60 52 60 51 68-‐85

General recommendations regarding mechanical ventilation solutions - Mechanical supply and exhaust ventilation systems provide better comfort and allow better control over the ventilation rate, but are also more expensive than non-‐ mechanical systems. The choice between the two types of systems must be made according to consideration of the specific needs of the hotel in terms of ventilation, acoustic comfort, etc. - Cooling, ventilation, and heating needs should be taken into account together, because the choices of ventilation/heating/cooling systems depend on one another. - Independent ventilation systems should be used for zones that have very different activities and sources of pollution in relation to other hotel areas. 14

Source: Rational Use of Energy in the Hotel Sector, Thermie Programme Action -B-103, 1995.

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Table 5.

General recommendations for ventilation regulation

Room type

Possible air flow controls 

Guestrooms 

Large restaurants  Kitchen

 

A presence detector is particularly recommended: either an on-‐off presence detector or a CO2 based detector A humidity control can also be used A CO2 detector can be used A humidity or temperature control is particularly adapted A presence detector can also be used

It is worth noting that ventilation control can be achieved either with an independent regulation system in each room or with a central (computer) system. It can therefore be integrated in the Building Energy Management System (BEMS) of the hotel, together with space heating and cooling control. In this case, it is recommended to adopt occupancy-‐linked controls by zone. How should I proceed to choose and install a new ventilation system? The choice of a particular type of ventilation system depends on a number of factors, such as the occupancy level and purpose of rooms. Given the technical complexity of this solution, we advise the hotel consults a qualified HVAC design company or installer to choose the right equipment for the specific needs of the hotel. If the hotel wants to upgrade their exhaust-‐only ventilation system to a Practical information supply-‐and-‐exhaust ventilation system, About its implementation: it may be possible to reuse the exhaust • Easiness: Moderate to difficult . • Best moment: when renovating the cooling or air network, but a suspended ceiling will heating system. need to be added for the air supply • Relevant initial situation: The hotel has no network. If the hotel decides to install a mechanical system for ventilation, or is new ventilator, they have to make sure equipped with a ventilation system that is not regulated. that its electricity consumption is as low as possible. Indicative cost: • Time programmer ≈ 50 € Depending on the system configuration, • Installation of a heat exchanger (partial retrofit) ≈ 6,500 € it may be necessary to thermally • ndicative return on investment time: insulate the air ducts and the heat • exhaust-only system ≈ 2-5 years exchanger – especially if located in a • supply-exhaust system <≈ 12 years non-‐heated part of the hotel. Note that costs and payback periods may vary greatly depending on the local context and on the About maintenance and servicing hotel initial situation. Maintenance and servicing of a mechanical ventilation system is essential for ensuring good hygiene and benefiting from the energy efficiency of the equipment over time. When a new system is installed, particular attention should be paid to providing easy access to the system for servicing purposes.

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(E) Cogeneration and trigeneration

Co-‐generation (CHP -‐ Combined Heat and Power) is the term for simultaneous production of electricity and heat. Trigeneration (CHCP – Combined Heat Cooling and Power) refers to the simultaneous production of electricity, heat and cooling – the latter generated by residual heat using absorption chillers. Trigeneration constitutes a potentially useful mechanism for increasing energy efficiency in hotels, because the energy demands of hotels are suitable for these kinds of installations. CHP systems generate both electricity and thermal energy from one single fuel (such as natural gas). Exhaust gases from combustion are used for space-‐heating, domestic hot water, or heating swimming pools. This heat can also be used by absorption machines to produce cold for refrigeration purposes. This means that, overall, the process is more efficient and less fuel is used. CHP equipment usually burns fossil fuel such as natural gas or diesel oil to generate electricity on-‐site. Gas and oil, being fossil fuels, are not renewable energy sources. However, the technology is still considered to be a ‘low carbon technology’ because it is more efficient than simply burning the fossil fuel for heat and sourcing electricity from the national grid. Co-‐generation systems are also available for small-‐scale users of electricity and have in recent years been developed for use in range of different applications. An important factor affecting the viability of a cogeneration unit for a hotel is the continuous demand for heat and electricity. The installation of a cogeneration system is only viable for hotels of a certain size and system of functioning. Hotels should be medium-‐sized or large, and the enterprises should not be seasonal. The number of operational hours determines whether a cogeneration unit will be viable or not. The primary objective of any combined heat, cooling and power installation is to minimise the cost of energy consumption for the owner or the operator. From a business perspective, CHCP provides the following advantages: - Reduced energy cost; - Improved profit margin and competitive edge; - Enhanced security in relation to energy price fluctuations; - Availability of a more reliable power supply; and - Improved power supply quality. When optimised, CHCP is an environmentally friendly method of energy production that reduces the need for fuel and increases competition in generation. For this reason, it can be considered a vehicle to promote liberalisation of energy markets. Cogeneration will usually provide overall energy conversion efficiency in the range of 70–75%, if all useable heat is recovered. This compares to the 25–30% conversion efficiency of a typical single-‐cycle centralised power station. Figure 3 presents a schematic comparing the relative energy efficiency of conventional generation and cogeneration.

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Figure 3: average overall efficiency of CHP vs. conventional systems15

The diagram shows that the natural gas reciprocating engine in a combined heat and power application produces 30 units of electricity and 45 units of heat with only 100 units of fuel. Losses amount to 25 units of energy. With conventional generation, the losses are more substantial: 154 units of fuel are needed to produce the same amount of useful electricity and heat, with total losses of 79 units of energy.16 A system for CHCP can consist of the following equipment: - Boilers, which generate steam through direct firing; - A cogeneration package, which includes: o Turbines, converting chemical energy to shaft power for electricity or mechanical drives; or o Reciprocating engines, converting fuel energy to shaft power for electricity or mechanical drives. Turbines or reciprocating engines are commonly referred to as the prime mover. o Generators, which convert mechanical shaft power to electric power. This is also called the alternator. - Heat recovery systems, which convert part of the waste heat into usable heat; - Absorption chiller, which converts heat to cold water for air conditioning; - Electrical chillers, which use electricity for air conditioning; - Cooling tower, for cooling of waste heat; - Heating, refrigerating and air-‐conditioning equipment, which includes heaters for building heating and domestic hot water, as well as refrigeration equipment for air-‐ conditioning; and - System controls, which ensure efficient and safe operation.

15 16

The Northeast Clean Energy Application Center, http://www.northeastcleanenergy.org/whatischp/overview.php CHP in hotels – a guide for hotel owners and managers. CHP Club 2003

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It is commonly assumed that the thermal output of a CHP plant at full load should amount to about 30% to 50% of the maximum yearly heat requirement at full load in a hotel (kW). This assumption grew from experiences showing that the co-‐generation modules can cover about 50% to 70% of the yearly energy requirement (kWh). For peak load periods, boilers supply the rest of the heat demand.17 All types of small systems available today for combined energy production using gas turbine and reciprocating engines are commercially ready and applicable to the specific requirements of hotels. However, three particular systems are especially suitable due to their cost and simplicity as well as their technical and thermodynamic characteristics.18 These are: - CHP with turbine engine; - CHP with standard temperature reciprocating engine; and - CHCP with high temperature reciprocating or turbine engine and absorption chiller. Practical information The first two systems are normally developed as a complete package, and are Indicative cost: relatively simple to install. They are also Hotels can save up to 30% on energy bills. There are several approaches to costing and small enough to be located in existing financing a CHP development. Servicing costs boiler rooms and can effectively replace and maintenance are estimated to be similar to a the main boiler, linking directly into the standard boiler – although a specialist will be existing heating distribution system. required. Incentives: These two system types constitute the Micro CHP are likely to cost a little more than basic forms of cogeneration suitable for conventional boilers currently available, but the majority of hotels, but are generally simple and low cost finance options are likely to be available. Your country may offer CHP sized to cover only the base load of incentives that will reduce costs. domestic hot water needs. However, these systems can also be designed to meet the Lifetime: 10 to 15 years thermal load and the electricity base load of a hotel. By doing so, the result is a Return on investment time: simple system that can meet most of the  The benefits of investing in CHP can only be energy demand of the hotel without realised by the appropriate operation of the plant. having to be equipped with a configuration  A number of micro CHP technology suppliers of electricity export to the local grid. offer a calculator on their website or a spreadsheet document upon request where The third system, the CHCP plant, saves you can see if the unit will be economical or not based on the annual kWh usage, more energy than the first two electricity and gas price, thus giving a good configurations but is more complex and indicator to see if deeper analysis is expensive to install, and requires a larger worthwhile. space for instalment. Furthermore, to be Note that costs and payback periods may vary viable, CHCP must operate almost greatly depending on the local context and on the continuously for extended periods of time hotel initial situation. and, ideally, a thermal demand must exist that completely utilises all or most of the 17

CHOSE Project, Energy Savings by Combined Heat Cooling and Power Plants (CHCP) in the Hotel Sector. http://www.inescc.pt/urepe/chose/results.htm 18 ditto

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waste heat recovered from the on-‐site engine-‐generator set, whether it is for domestic hot water, space conditioning or process steam. “Micro CHP” is CHP on a small scale, with the prime mover generating less than 50 kW of electricity (KWe). The main difference between these and standard boilers is that they are able to generate electricity while heating water. (The main output of a micro CHP system is heat, with some electricity generation.) Any electricity generated and not used in the hotel can be exported back to the grid. Most micro CHP systems today use gas as a heating fuel, although they can also be powered with oil or biofuels. Cogeneration using biomass is one of the best means of converting a renewable energy source into heat and power, because it is coupled with CO2 reduction potential when compared with fossil fuels. There are 3 main micro CHP technologies available. The difference among them is the way in which they generate electricity. The three main engine technologies normally used are: 1. Stirling engine; 2. Fuel cell; and 3. Internal combustion engine. Recommendations19 To find out if a micro CHP system is suitable for a SME hotel, it will need: -

Simultaneous base load requirement for electricity and heat; Suitable fuel supply (preferably biofuels); Suitable access and space for the micro CHP unit; Suitable location with respect to other site functions (e.g. noise and exhaust); and Fuel and electricity consumption records available on a monthly or more frequent basis.

Designing a micro CHP system Micro CHPs in Europe are understood to include cogeneration facilities in the performance range of up to 50 KW of electricity. They are designed as small, compact, combined heat-‐power cogenerating facilities ready for connection. Thus, they meet the following demands: -

Small, compact system; Fitting through the heating cellar door without problems; Directly installed by craftsmen and partially also maintained by them; and Offering low maintenance costs and a long lifespan for the motor.

Powered through the existing gas network, micro-‐combined heat and power units are easily installed. They operate similar to a conventional gas boilers and it is therefore unlikely that the hotel radiators will need to be replaced. As with fitting a new boiler, it may be necessary to inspect and make improvements to the central heating system to optimize performance. Available systems include options that can be hung on the wall, and others that must be situated on the floor. Will I need any permits or inspections to install a micro CHP system? Air pollution permits may be required before the micro CHP system can be installed. 19

Key RE solutions for SME hotels , Micro combined heat and power (Micro CHP), - n°I

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(F) Window and Building insulation Insulation is the best and most direct way to reduce energy consumption related to heating or cooling in buildings. Heat and cool are lost due to transmission through external building elements such as walls, windows, floors, roofs, etc. The better a building is insulated; however, the less heat or cold is lost. Better insulation therefore means less energy needs to be consumed to maintain building temperature. Good insulation means the building keeps heat and cold inside the hotel for longer so that the heating or HVAC system does not need to work as hard. Because building insulation helps keep a building warm in winter and cool in summer, it reduces space heating and space cooling needs, and has the potential to reduce energy consumption for space heating up to 20-‐50% (with external wall and roof insulation). Improving the thermal insulation of hotel buildings is thus key to reducing the money spent on heating and cooling. Besides fitting insulation, it is important to ensure that the building is airtight, since ventilation and infiltration losses through cracks, crevices and the like also account for much wasted heat. This will reduce the amount of draught and moisture entering the building and make the walls and floors feel less cold. If a building is properly insulated and airtight, it will require less heating, which means that a smaller (and hence cheaper) boiler may be able to heat the same surface area. Proper insulation requires significant additional outlay when building or renovating, but this can soon be recouped. Thermal insulation of the building is a top priority to save on space heating, and needs to be considered before the replacement of space heating equipment. Indeed, there is little point to putting in an energy-‐efficient boiler if all the heat goes straight out of the hotel again. In winter, major heat losses occur through the building roof and exterior walls. For this reason, the insulation of the roof and of the exterior walls is especially recommended. Moreover, thermal insulation can simultaneously help reduce the cooling needs of the hotel in summer. This is because thermal insulation also serves as a barrier to solar radiation, which saves on cooling. To be truly efficient, however, cooling strategies need to be comprehensive (e.g. combined sun protection, cooling ventilation and air-‐cooling) and the building needs to have an appropriate “thermal mass”.

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Thermal mass Thermal mass is a concept in building design that describes how the mass of the building provides "inertia" against temperature fluctuations. The thermal mass comes from the materials used for the walls and the other construction elements. It keeps heat (in winter) and cooling (in summer) inside the hotel for longer. Exterior wall insulation Exterior walls can be insulated either from inside or outside. When feasible, insulation is best placed on the outside of the wall as this enables the building to benefit from the thermal mass of the walls, and it eliminates the thermal bridges resulting from construction or improper workmanship (which are responsible for heat losses). Insulating external walls form the outside means using an insulation layer fixed to the existing wall, plus a protective render or decorative cladding. A wide range of finishing materials can be used for dry cladding – including timber panels, stone or clay tiles, brick slips or aluminium panels. Insulating these walls from the inside typically means using either dry lining in the form of flexible thermal linings, laminated insulating plasterboard, or built-‐up system using fibrous insulation such as mineral wool held in place using studwork. The specific case of cavity walls In some countries, exterior walls may be cavity walls, which consist of two ‘skins’ separated by a hollow space. The skins are commonly composed of masonry such as brick or concrete block. Cavity wall insulation is a cost-‐effective way to reduce the amount of heat (as much as 35%) lost from convection through walls. This consists of a continuous layer of insulation filling the wall cavity. This solution is a first step and has a quick payback period. Treatment of thermal bridging in cavity wall openings may also be considered. Insulating windows Regarding windows, these can be major conduits for energy losses. Whether they are relatively small, punched openings in the building façade or a completely glazed surface, windows are usually a dominant feature of the hotel’s exterior appearance. They also have a significant impact on the visual comfort, thermal comfort, and space heating and cooling needs of the hotel. However, windows may cause important heat losses in winter, and glass surface may be a source of overheating in summer. The installation of thermal insulated windows is therefore key to reducing heating and cooling needs.20 By helping keep the building warm in winter and

To prevent overheating in summer, it is also recommended to install appropriate sun shading devices.

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cool in summer, insulated windows reduce space heating and space cooling needs and have the potential to save energy consumption on space heating from 7 to 15%. It is important to note that even old-‐fashioned sash windows can be double-‐glazed. The type of glazing is an important aspect to consider, together with the type of frame. Recommendations for Building Insulation21 About its implementation: When should the building be  Easiness: Difficult. insulated?  Best moment: during façade renovation.  Relevant initial situation: the hotel building was constructed at a time where poor insulating standards The best opportunity to insulate a were applied, no insulating upgrading has been done building is when the façade or roof is since construction and the hotel has important being renovated. If the hotel heating needs. external walls and its roof needs Indicative cost (French prices in 2009): work anyway, it is an ideal time to  Internal insulation of exterior walls: approx. 20 to 50 € have insulation added. Much of the per m2  External insulation of exterior walls: approx. 50 to 80 labour costs are being paid already € per m2 and the hotel will only need to pay  Indicative return on investment time: the extra cost for the insulation  Cavity wall insulation: <2-6 years materials and the extra hours of  External wall insulation: <5-10 years  Loft insulation: <5-7 years work.  Floor insulation: <5-7 years Precautions to take when insulating Note that costs and payback periods may vary greatly depending on the local context and on the hotel initial a building: situation. - It is important to understand how thermal heat transfers and humidity transfers occur through the building before deciding to insulate it, and this requires seeking professional advice. Most walls need to “breathe” and it is essential to allow for this. - Thermal bridges must be treated with care. These are typically found in floor-‐wall connections, in window and door installations, around balconies and so on. - When exterior walls are insulated from the inside, care must be taken to avoid condensation in the insulation. - Whenever thermal insulation works are carried out in an existing building, careful attention must be paid to the ventilation within the building. A building that is better insulated will have less natural ventilation. This means that the ventilation system may need to be upgraded when insulation is installed. 21

Key EE solutions for SME. Building insulation hotels – n°VII

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Recommendations for Window Insulation22 What are the criteria to consider when choosing a glazing? The right choice of glazing will depend on the climatic conditions of the hotel’s location, the orientation of the façade, and the exposure to noise. The criteria to consider when choosing the type of glazing are: -

Its thermal insulation (to prevent heat loss);

Its thermal transmission (to benefit from natural solar heating in winter);

Its ability to transmit natural light (to improve comfort and reduce lighting needs); and

The protection it offers against noise.

It is recommended that the hotel choose glazing that offers the best combination of these characteristics, while taking into account the specific needs of the hotel. Table 6. Glazing properties Glazing properties

Definition

Light transmission coefficient

A high light transmission coefficient means a good capacity to transmit natural light

Solar heat gain coefficient

The solar heat gain coefficient is an indicator of the proportion of incoming energy that will be emitted behind the glazing

Heat transfer coefficient

A low heat transfer coefficient indicates good thermal insulating capacity

Emissivity

A low emissivity indicates low energy loss through radiation (and thus improved comfort in winter)

Heat transfer coefficient A high solar heat gain coefficient is important in winter for the hotel to benefit from solar heating, but a low solar heat gain coefficient is needed in summer to avoid overheating. To solve this problem, it is best to install glazing with a high solar heat gain coefficient and to combine this with sun shading devices to avoid overheating in summer. The “heat transfer coefficient” depends on the thickness of the 22

About its implementation:  Easiness: Moderate.  Best moment: during façade renovation.  Relevant initial situation: the hotel has simple glazing windows or non-insulating double glazing windows. Indicative cost (French prices in 2009):  Low-E double-glazing only: approx. 150 € per m2  Double-glazing + new window: approx. 200 to 350 € per m2 Indicative return on investment time:  < 6 years Note that costs and payback periods may vary greatly depending on the local context and on the hotel initial situation.

Key EE solutions for SME. Window insulation hotels – n°VI

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glazing, on the gas used to fill the space between glazed panels, and on the emissivity of the glazing (which refers to its ability to radiate energy). A low emissivity glass has a thin coating, often of metal, on the glass that reflects thermal radiation or inhibits its emission reducing heat loss through the glass. What are the criteria to consider when choosing joinery for window frames? Joinery for window frames needs to be chosen with particular care because of its impact on the thermal insulation capacity of the window, on waterproofing, and on the ventilation of the room. To ensure good thermal insulation of a window, it is important to choose a window frame with a low heat transfer coefficient (see above). Sun Shading23 Installation of sun-‐shading devices, including external movable sun-‐shading devices, is highly recommended in hotels that are exposed to the sun in summer. Well-‐designed shading will help keep the building cool and comfortable and will limit the space-‐conditioning needs of the hotel. A sun-‐shading device acts as a barrier to solar radiation. This barrier is most effective when placed outside a window to stop some of the solar radiation from reaching the window. When the protection is placed inside, only a much smaller portion of the incoming solar radiation is reflected back outside.

Key EE solutions for SME. Sunshading devices hotels – n°IX

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Recommendations for Sun-‐shading Devices Outside sun shading devices (e.g. blinders) are recommended because they are more efficient than inside sun shading devices (e.g. curtains) in terms of heat protection. Sun shading devices can be fixed (e.g. sunshades) or movable (e.g. blinders). For rooms facing east or west, it is best to install movable sun shading devices, because they can be removed in winter to let the sun come in and help heat the air. For rooms facing south, either movable or fixed shading devices can be installed, because even fixed shading devices can allow sufficient winter sun into the room, provided the shading device is well designed.

Table 7.

Room exposure and type of sun shading

Room exposure

Type of sun shading devices recommended

North

No sun shading device

East & West

Movable, exterior sun shading device

South

Exterior sun shading device (either movable or fixed)

Which rooms are most important to shade? For hotels in the northern hemisphere, it is especially recommended to install sun-‐shading devices on rooms facing west, east and south. Office rooms facing west and south should also be protected. What are the criteria to consider when choosing a sun-‐shading device? - Exposure of the room, About its implementation: relating to the geometric  Easiness: Moderate. angle between the sun and  Best moment: during façade renovation.  Relevant initial situation: the hotel has space cooling the window, needs to be needs in summer. taken into account for choosing an appropriate Indicative cost: sun-‐shading device. Facing  Varies. south, the summer sun is Indicative return on investment time: high in the sky: it is best to  May be <5 years. have a horizontal sun-‐ shading device. Facing east Note that costs and payback periods may vary greatly depending on the local context and on the hotel initial and west, the sun is lower: situation. it is then generally best to have a vertical sun-‐shading device. - Type of window: the type of glazing and the size of the window should be considered.

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Compatibility with summer ventilation: if the hotel opens windows in summer to ventilate and cool down the hotel, the hotel needs to make sure the sun-‐shading device does not reduce ventilation capacity by too much. Colour of the sun shading device: it is best to choose shading devices with light colours, as these are better at reflecting back solar radiation. Durability: it is recommended to check maintenance requirements, wind resistance, and related durability characteristics. Ease of use: the hotel may wish to consider equipping movable sun shading devices with a centralised control system for ease of use.

(G) Bioclimatic Architecture

Bioclimatic architecture refers to the design of buildings and spaces (including interior, exterior, and outdoor) based on local climate, aimed at providing thermal and visual comfort, making use of solar energy and other environmental sources. Basic elements of bioclimatic design include passive solar systems, which are incorporated into buildings and utilise environmental sources (such as sun, air, wind, vegetation, water, soil, sky) for heating, cooling and lighting. Bioclimatic design takes into account the local climate and includes the following principles: - Heat protection of the buildings in winter as well as in summer, using building insulation and window insulation (as described earlier). - Protection of the buildings from the summer sun, primarily through sun-‐shading (as described earlier) but also through the appropriate treatment of the building façade, such as with the use of reflective colours and surfaces. - Ensuring insulation is combined with solar control for natural lighting of buildings during the day, in order to provide sufficient and evenly distributed natural light to interior spaces. - Removal of heat that accumulates in the building in summer to the surrounding environment using natural means (especially passive cooling systems and techniques), such as natural ventilation, mostly during night time. - Adjustment of environmental conditions in the interior of buildings so that inhabitants find them comfortable and pleasant (i.e. increasing the air movement inside spaces, heat storage, or cold storage in walls). - In the case of planning the construction of a new building or facility for the hotel, in order to use solar energy for heating the building in winter and for day lighting all year round, it is important to take into account an appropriate orientation of the buildings

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and especially their openings (preferably facing south). This is achieved by planning the layout of interior spaces according to their heating requirements, and by using passive solar systems that collect solar radiation and act as natural heating and lighting systems. Outside works to improve microclimate comfort, through the bioclimatic design of exterior spaces and the built environment in general, adhering to all of the above principles.

What are passive systems for heating, cooling and lighting? Passive solar systems are the integrated component elements of a building that function without mechanical devices or additional energy supply, and are used for heating, cooling and lighting buildings naturally. Passive solar systems are divided into three categories: 1. Passive Solar Heating Systems 2. Passive (Natural) Cooling Systems and Techniques 3. Systems and Techniques for Natural Lighting The bioclimatic design of a building requires the simultaneous and coordinated operation of all the systems so that thermal and visual benefits can be combined throughout the year. Points to remember: - The sun heats buildings. We can make use of this resource for passive heating by utilising bioclimatic design strategies. - Buildings should be protected from cold and heat using suitable insulation. - Natural cooling, compared to air conditioning, not only provides energy saving, economic and environmental benefits, but also constitutes a different approach, having as its goal human comfort and well-‐being. - We can utilise natural resources, and also reduce the internal loads of buildings accordingly. - We can utilise daylight, but we must understand and solve the problem of glare. - Buildings must be managed conscientiously in order to ensure the efficiency of passive systems and energy saving techniques. We should not forget to open and close windows and blinds appropriately. Trombe Wall A typical example of passive solar system is a Trombe wall, which consists of a vertical wall built with a material such as stone, concrete, or adobe that is covered on the outside with glazing. Sunlight passing through the glazing generates heat, which conducts through the wall. Warm

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air between the glazing and the Trombe wall surface can also be channelled through natural convection into the building interior or to the outside, depending on the building's heating or cooling needs. During the day, sunlight shines through the glazing and hits the surface of the thermal mass, warming it by absorption. The air between the glazing and the thermal mass warms (via heat conduction) and rises, taking heat with it (convection). The warmer air moves through vents at the top of the wall and into the living area while cool air from the living area enters at vents near the bottom of the wall. At night, a one-‐way flap on the bottom vent prevents backflow that would otherwise cool the living area, and heat stored in the thermal mass radiates into the living area. Figure 4: Trombe wall. Outside Works to Improve Summer Comfort24 Well-‐designed landscaping can minimise summer heat gain in the hotel, reducing its cooling needs by 20% to 100%. Planting a deciduous shade tree on the southwest or southeast side of the hotel, for instance, will help reduce its cooling needs and help maintain a comfortable indoor air temperature. The hotel may also consider planting indigenous shrubs, or installing open pools or fountains for evaporative cooling. Choosing the right ground cover for the surrounding area also plays an important role in summer comfort. Well-‐placed deciduous trees can help keep the hotel cool in summer by providing the building with shade from the sun. Deciduous trees are recommended because their leaves fall in winter, allowing the building to benefit from sun heating through windows facing east, south and west. “Green walls” (walls covered with plants) can be a solution to reduce the temperature of walls by as much as 10°C in warm seasons. During hot days, hot walls cause temperatures to rise 24

Key EE solutions for SME hotels , Outside works to improve summer comfort– n°X

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inside buildings, increasing demand on cooling systems and consuming more energy. When covered with plants and moist soil, the wall surface temperature can be reduced by up to 10°C, thus lowering cooling needs inside the building. Similarly, “green roofs” can also provide thermal insulation and that may significantly decrease thermal load in warm seasons. Green roofs may act as an exterior thermal insulation material (for summer and for winter) and have a superior cooling power than green walls in summer. Their insulating efficiency increases as moisture content increases. Benefits of plants and trees: - Plants and trees not only provide shade, they also cool through evapotranspiration,25 which is heat removal due to the evaporation of water from the leaves. - Green surfaces help to reduce urban “heat island” effects and improve air quality. - Plants and trees are important carbon sinks, helping to remove carbon dioxide, a ‘greenhouse gas’, from the atmosphere. - Planting trees and shrubs to shade the outdoor parts of the hotel’s air conditioning units can increase their efficiency by as much as 10%. Ground cover for surrounding areas The ground cover of the area surrounding the hotel is also important because it influences heat radiation and reflection onto windows and walls. It is best to choose ground cover that minimises ground reflection and keeps the ground surface cooler, thereby preventing re-‐ radiation. If the hotel paves the south side of the building, for example, it is recommended to use only permeable pavement or permeable light-‐coloured concrete. It may also use bushes and plants to shade pavements, or cover them with wood. Evaporative cooling Open pools and fountains can improve summer comfort in the surrounding area of the building. For cooling to occur, it is best for the fountain or pool to be active, with water and air mixing to encourage evaporation. A fountain's potential to cool an area also depends on ambient conditions. Fountains installed on the north side of buildings and walls are sheltered from the sun and thus provide better cooling.

see glossary for the definition

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Recommendations for Outside Works How to choose plants and trees? - Plants vary in the care they require. Select varieties that require minimal care and water, and can withstand local weather extremes. - The hotel can ask its local garden shop or landscape company for plants and trees that grow well in its region, but that do not require great amounts of additional water and other resources. Where to plant trees? - Remember that using vegetation to reduce cooling needs requires a different approach for the roof and for the east and west walls. - Plant trees far enough away from buildings so that their roots won’t affect the building’s foundations. - Do not plant trees directly to the south of the hotel. Instead, plant trees on the southwest or southeast exposures. In the winter, About its implementation: even the bare branches of  Easiness: Moderate.  Best moment: when making outside works. mature deciduous trees  Relevant initial situation: the hotel has space cooling can reduce the amount of needs in summer and has a private exterior space. sun reaching the hotel’s Indicative cost: south-‐facing windows,  Depends on the type of works. limiting natural heat and  Extensive green roof ≈ 100 €/m2 (installed) light gain.  Intensive green roof ≈ 200 €/m2 (installed) Indicative return on investment time: - Shading the hotel’s roof,  Landscaping: may be less than 8 years. or using a green roof, will increase cooling effects Note that costs and payback periods may vary greatly even more than shading depending on the local context and on the hotel initial situation. windows. Place trees that grow tall, with widespread branches, on the southwest or southeast sides of the hotel to shade the roof when they reach full height. Trees with branches that spread lower to the ground are best on western exposures to provide shade from the lower-‐angle afternoon sun. - It can be helpful to have a professional determine the best location for the hotel’s trees to maximise energy efficiency. How to choose plants for green walls? - Plants used for green walls should not act as a barrier to sun heat in wintertime. For this reason, it is recommended to choose plants that acquire leaves late in spring and lose them early in autumn.

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As the efficiency of green walls depends on local weather conditions and on the sun exposure of the walls, it is recommended to ask a professional for some advice.

How to choose the type of green roof? - There are two basic types of green roofs: intensive and extensive. Extensive green roofs are simpler: they require less supporting material and less maintenance. They are therefore more suitable for hotels. - Given the complexity of this solution, it is recommended to ask a professional for some advice.

(H) Electric appliances with high energy efficient rating

Kitchen and catering equipment Hotel kitchens and laundries can be the most energy-‐intensive areas by square meter. Depending on the type of hotel, the kitchen may be equipped to serve only breakfast or a large number of meals during the day. Naturally, energy consumption is dependent on the number of meals served daily, as well as the type of food prepared. Studies have shown that kitchens represent 25% of total hotel energy usage. The major portion of energy use in the kitchen (60-‐70%) is for appliances and cooking. The studies also indicate that a substantial base load exists even during night-‐time and early morning hours, when the kitchen is inoperative. Constant refrigeration of foodstuffs accounts for a portion of that base load.26 The following are other relevant characteristics of energy usage in kitchens: - The most common source of energy for cooking is gas. - The average energy consumption in kitchens is around 1-‐2 kWh per meal. - It is estimated that some 4,5 litre of domestic hot water at 60°C are required for cooking each meal. In addition, hot water for washing dishes is needed. The sum of energy consumption for hot water in kitchens is estimated to 0.2-‐0.3 kWh per meal. - Cold requirements for conserving food before and after cooking range from 0.1 to 0.3 kWh per meal.

The electrical power required by the auxiliary equipment used in kitchen is much lower than the usage for hot water and refrigeration. Ventilation in kitchens is very important, as smoke is produced during cooking that needs to be quickly expelled. Fans and extractor fans can make up a large proportion of total energy consumption in kitchens.

For food heating processes, the use of available energy-‐efficient technology allows controlled 26

CHOSE Project, Energy Savings by Combined Heat Cooling and Power Plants (CHCP) in the Hotel Sector. http://www.inescc.pt/urepe/chose/results.htm

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and much lower energy consumption. For example, the performance and energy efficiency of induction hobs (as cooktops) are twice that of conventional plates. For ovens, the use of forced convection increases heat transfer efficiency compared with conventional static ovens, thereby reducing energy consumption and allowing for faster and more uniform baking. Aside from being more energy efficient than static ovens, forced convection ovens also provide the following additional advantages: - They require less space than static ovens (while offering the same productivity); - They provide excellent cooking quality; and - When working at lower temperatures, the soiling of the interior walls of the oven is lower than in static ovens. The disadvantages of the forced convention ovens include the following: - Because they operate with electricity, they increase the electric power needs of the facility and the installation; and - Normally, the unit cost of electricity is higher than using a gas convection oven. Microwave ovens allow cooking certain foods with minimal use of energy, saving 50 to 70% compared with conventional ovens. The drawback is that microwave ovens can’t heat foods at temperatures above 100ºC, are not appropriate for heating some types of foods, and do not allow certain types of cooking, such as grilling, roasting and frying.

Recommendations

It is recommended to install intelligent fan controls with cooking sensors on kitchen hoods. These controls slow down kitchen hood fans when little or no cooking is occurring. Generally, all kitchens are equipped with devices such as freezers, refrigerators, icemakers, soft drinks and beer machine, and/or wine coolers that reject waste heat, which is usually dispersed into the ambient air. It is recommended that this wasted heat be carried away instead by an exhaust air system that moves it directly out of the building.

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(I) Other appliances The energy used for laundry services in hotels also constitutes a significant share of energy consumption. The main related energy functions and equipment include water heating, dryers, and ironing. Steam can also be used for sterilisation purposes. Average consumption is 2-‐3 kWh About its implementation:  Easiness: Easy. per kilogram of clothes, divided  Best moment: when replacing electric appliances. between washing (at temperatures  Relevant initial situation: some of the electric of 60-‐80°C), drying, ironing and appliances that the hotel uses (for catering, laundry, general electricity consumption. office…) do not have high energy efficient rating. Generally, the laundry service Indicative cost: operates on steam at a  Varies. temperature of 110° to 120°C. In Indicative return on investment time: some cases, comfort devices are  <1-8 years also installed to alleviate intolerable conditions for the Note that costs and payback periods may vary greatly personnel working in the laundry depending on the local context and on the hotel initial situation. facilities. One interesting characteristic of hotel laundries is that energy use remains fairly constant regardless of occupancy. This indicates that certain equipment and lighting are turned on for the same time periods each day regardless of workload, and a potential for more energy efficient laundries ought to exist with better planning and management. Other appliances used in hotels include mini bar refrigerators, TVs, and office equipment. If the hotel wants to replace or upgrade the old appliances and electronic products, they must be sure to choose products with high energy-‐efficiency ratings. The European energy labelling (introduced by the Council Directive 92/75/EEC) is available for most common hotel electronic appliances, including catering equipment (such as refrigerators, freezers, mini-‐bars and dishwashers) and laundry equipment (such as washing machines, dryers and irons). Energy efficiency is expressed in terms of energy class, ranging from A to G. Class A corresponds to the optimal level of efficiency, while class G is the least efficient. Using catering and laundry equipment with a high energy efficient rating (class A, A+ or A++) is particularly important considering that these services account for a considerable share of energy consumption in hotels. Catering may represent as much as 15% of energy consumptions, for example. For office equipments (such as computers, faxes, printers, scanners, photocopying machines), the Energy Star label can be used as a reference. Other energy labels may also be used. In the U.K., for instance, the hotels can look out for the Energy Saving Recommended label. This label is awarded to products that meet strict criteria for energy efficiency. It endorses over 3,000 different products – such as washing machines, dishwashers, lighting, televisions and DAB (digital) radios.

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Figure 5: Example EU energy label for a washing machine

It is important to note that electric appliances with a high-‐energy efficiency rating are usually a high-‐return, low-‐risk investment. The energy saving potential associated with the use of electric appliances can reach 50%. Recommendations How to proceed? A first step is to identify all energy-‐consuming appliances used in the hotel. It is recommended to list and document them. This information should include information about the energy label, brand, year of purchase, load and operating hours. As a second step, the hotel should identify which equipment should be replaced, and make sure the new equipment purchased has a good energy rating. A point of caution Be aware that if the hotels are replacing equipment with more efficient versions while simultaneously upgrading the associated service (for instance, by switching to a refrigerator with a larger capacity), the energy savings may be compromised to some extent.

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5.02 R ENEW ABLE E NERGY O PPORTUNITIES

(A) Solar thermal energy Solar water heating is a technology that uses energy from the sun to heat water. Solar thermal collectors are designed to collect heat by absorbing sunlight. The term is applied to solar hot water panels, but also may be used to denote more complex installations, such as solar parabolic trough collectors and solar towers, or simpler installations, such as solar air heating. The more complex collectors are generally used in solar power plants where solar heat is used to generate electricity by heating water to produce steam, which drives a turbine connected to an electrical generator. The simpler collectors are typically used for supplemental space heating in residential and commercial buildings, including hotels. Solar panels placed on the roof of the hotel’s facility can collect the sun’s rays to heat water that then flows to a storage tank supplying hot water for showers, cooking and space heating devices. There are many different types of solar water-‐heating technologies available. Choosing a technology depends on several factors, such as: - Intended use (e.g. swimming pool, domestic hot water, etc); - Local climate; - Characteristics of the hotel roof; - Water quality; and - Available space. There are many considerations that need to be taking into account regarding these technology systems, including the selection of solar collector technology, boosting system and tank type, and where to position the tank. Sizing the system appropriately for the accommodation facility is critical to achieving efficient operation. Systems can be tailored to an accommodation facility by selecting a suitable tank capacity and suitable number of collectors. The tank can be located on the roof, on the ground or in a roof cavity. A solar water heater will work best if its collectors can receive full sunshine during the middle of the day when the sun is high in the sky and at its strongest. It is best to locate collectors away from any shaded areas, such as below trees or adjacent to buildings.

Solar water heaters can be used in all climates, including colder ones. There are tailored systems available for areas prone to frost or snow, and for areas where temperatures reach minus 30°C. In Europe, the position of the collectors at a 40-‐ to 50-‐degree angle will achieve better winter performance because the sun is lower in the sky in winter. There are three main types of solar collectors: - Glazed flat plate collectors, generally used for domestic hot water; - Unglazed plastic collectors, used mainly to heat swimming pools; and - Evacuated tube collectors.

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Flat Plate Panels Flat plate panels are a common type of system and operate best when the sun is directly overhead, but less so when the sun’s rays hit the panels at angles that are less than perpendicular. Their main elements are: a dark, flat-‐plate solar energy absorber; a transparent cover that allows solar energy to pass through but reduces heat loss; a heat-‐transport fluid (air, antifreeze or water) to remove heat from the absorber; and an insulating backing. The absorber consists of a thin sheet composed of polymers, aluminium, steel or copper, often backed by a grid or coil of fluid tubing placed in an insulated casing with a glass or polycarbonate cover. In water heat panels, fluid is usually circulated through tubing to transfer heat from the absorber to an insulated water tank. Unglazed Plastic Collectors Unglazed plastic collectors are usually made of black plastic that has been stabilized to withstand ultraviolet light. Since these collectors have no glazing, a larger portion of the sun's energy is absorbed. However, because they are not insulated, a large portion of the absorbed heat is lost, particularly when it is windy and cold outside. Nevertheless, these collectors transfer heat to and from air so effectively that they can actually capture heat during the night when it is hot and windy outside. They are among the most efficient solar collectors available today; some even approach 90% gross area efficiency! The features that make them efficient are: many tubes with no gaps between them; thin plastic, built to lie against the roof surface -‐ rather than standing above it; and single-‐pass water flow – meaning water does not flow back and forth through a group of collectors. Another type of unglazed collectors is made of rubber. These collectors have been available for almost as long as the unglazed plastic collectors. They are typically significantly less efficient than unglazed plastic collectors (by 20% to 40%) for a number of reasons, including: fewer tubes; gaps or spaces between the tubes; and thicker rubber in the tubes. The gaps between the tubes have two negative effects upon the efficiency of the collectors. First, the gaps miss the sun. Both rubber and plastic are not good conductors of heat, so sunshine that falls into a gap between tubes is not efficiently conducted to the water in the tubes, and heat is lost to the air or re-‐radiated. Second, the gaps between the tubes allow wind to remove heat from the exposed surface areas of the tubes. In fact, an unglazed plastic panel actually has been shown to have the poorest efficiency, because it has no web between its tubes at all -‐ which allows the wind to blow through and cool it off like a fan on a car radiator! Evacuated Tube Collectors Evacuated tube collectors use glass tubes and can be more efficient than flat plate panels in certain conditions, such as in cold climates. They feature parallel rows of transparent glass tubes. Each tube contains a glass outer tube and metal absorber tube attached to a fin. The fin's coating absorbs solar energy but inhibits radiated heat loss.

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Most vacuum tube collectors use heat pipes for their core instead of passing liquid directly through them. Evacuated heat pipe tubes consist of parallel rows of glass vacuum tubes, each containing an absorber plate fused to a heat pipe. The heat from the hot end of the heat pipes is passed to the transfer fluid (either water or an antifreeze mix -‐ typically propylene glycol) of a domestic hot water or hydronic space heating system in a heat exchanger. The vacuum that surrounds the outside of the tube greatly reduces heat loss. The evacuated tube collectors can achieve high temperatures in the range of 70°C to 170°C and can, under the right set of circumstances, work very efficiently. However, they are quite expensive, with unit area costs typically about twice that of flat-‐plate collectors. This technology is well-‐suited to commercial and industrial heating applications and also for cooling applications (by regenerating refrigeration cycles). For domestic hot water heating, flat-‐plate collectors tend to offer a more cost-‐effective solution. Evacuated-‐tube collectors fall into two main groups: direct-‐flow evacuated tube collectors, and heat pipe-‐evacuated tube collectors.27 Direct-‐flow evacuated-‐tube collectors These consist of a group of glass tubes, inside each of which is a flat or curved aluminium fin attached to a metal (usually copper) or glass absorber pipe. The fin is covered with a selective coating that absorbs solar radiation well but inhibits radiative heat loss. The heat transfer fluid is water, which circulates through two pipes, one for inlet fluid and the other for outlet fluid. Direct-‐flow evacuated tube collectors come in several varieties distinguished by the arrangement of these pipes, as follows: a) Concentric fluid inlet and outlet (glass-‐metal). These use a single glass tube. Inside this is a copper heat pipe or water flow pipe with attached fin. This type of construction means that each single pipe can be easily rotated to allow the absorber fin to be at the desired tilt angle even if the collector is mounted horizontally. The glass-‐metal design is efficient but can suffer reliability problems. The different heat expansion rates of the glass and metal tubes can cause the seal between them to weaken and fail, resulting in a loss of vacuum. Without a vacuum, the efficiency of an evacuated-‐tube collector is no better, and may be worse than, that of a flat-‐plate collector. b) Separated inlet and outlet pipes (glass-‐metal). This is the traditional type of evacuated-‐tube collector. The absorber may be flat or curved. As in the case of the concentric tube design, the efficiency can be very high, especially at relatively low working temperatures. The weakness again is the potential loss of vacuum after a few years of operation. c) Two glass tubes fused together at one end (glass-‐glass). The inner tube is coated with an integrated cylindrical metal absorber. Glass-‐glass tubes are not generally as efficient as glass-‐metal tubes but are cheaper and tend to be more reliable. For very high temperature applications, glass-‐glass tubes can actually be more efficient than their glass-‐metal counterparts Heat pipe evacuated-‐tube collector cross section 27

Encyclopedia of Renewable Energy and Sustainable Living. http://www.daviddarling.info/encyclopedia/A/AEnotes.html

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These consist of a metal (copper) heat pipe, to which is attached a black copper absorber plate, inside a vacuum-‐sealed solar tube. The heat pipe is hollow and the space inside, like that of the solar tube, is evacuated. The reason for evacuating the heat pipe, however, is not insulation but to promote a change of state of the liquid it contains. Inside the heat pipe is a small quantity of liquid, such as alcohol or purified water plus special additives. The vacuum enables the liquid to boil (i.e. turn from liquid to vapour) at a much lower temperature than it would at normal atmospheric pressure. When solar radiation falls the surface of the absorber, the liquid within the heat tube quickly turns to hot vapour rises to the top of the pipe. Water, or glycol, flows through a manifold and picks up the heat, while the fluid in the heat pipe condenses and flows back down the tube for the process to be repeated. An advantage of heat pipes over direct-‐flow evacuated-‐tubes is the "dry" connection between the absorber and the header, which makes installation easier and also means that individual tubes can be exchanged without emptying the entire system of its fluid. Some heat pipe collectors are also supplied with a built in overheat protection – when a programmed temperature has been reached, a "memory metal" spring expands and pushes a plug against the neck of the heat pipe. This blocks the return of the condensed fluid and stops the heat transfer. A drawback of heat pipe collectors is that they must be mounted with a minimum tilt angle of around 25°C in order to allow the internal fluid of the heat pipe to return to the hot absorber Other considerations Evacuated-‐tube collectors get much Solar Water Heater Systems hotter than flat-‐plate collectors. The About its implementation: high temperatures they produce, which  Easiness: can exceed the boiling point of water,  Best moment:  Relevant initial situation: can cause significant problems in a Indicative cost: Maintenance costs are very low. domestic solar water heating or solar space heating system. It's therefore Incentives: crucial to make sure there is always an Your country may offer solar rebates or other incentives that will reduce costs. adequate load on the system to keep the temperatures below 100°C (212°F). Lifetime  Can last for 20 years or more The glass tubes are fragile, especially Return on investment time: so since they are made of annealed  Will have paid for itself after more or less 5 years. glass, which is much more delicate High energy savings for domestic hot water than tempered glass. Care must be preparation and space heating taken when transporting and handling Note that costs and payback periods may vary greatly the glass tubes. depending on the local context and on the hotel initial situation Finally, evacuated-‐tube collectors, unlike flat-‐plate collectors (the surface of which is always warm), do not shed snow. Because the evacuated tubes are such good insulators, little heat escapes them and the snow that accumulates on the tubes can stick for a long time. Their surface is also irregular, so snow packs

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between the tubes, rendering them ineffective, and the fragility of the glass tubes makes it impossible to scrape the accumulated snow off. Types of Solar Water Heating Systems There are three main types of solar water heating systems: - Active Solar Water Heating Systems (direct circulation); - Active Solar Water Heating Systems (indirect circulation); and - Passive Solar Water Heating Systems. Solar water heating systems require a backup system for cloudy days and times of increased demand. Conventional storage water heaters usually provide backup and may already be part of the solar system. Active Solar Water Heating Systems (direct circulation) These systems use pumps to circulate pressurised potable water directly through the collectors. These systems are appropriate in areas that do not freeze for long periods. Active Solar Water Heating Systems (indirect circulation) These systems pump heat-‐transfer fluids through collectors. Heat exchangers transfer the heat from the fluid to the potable water. They are popular in climates prone to freezing temperatures. Passive Solar Water Heating Systems Passive systems, or thermosyphon systems, rely on the natural convection of warm water rising to circulate water through the collectors and to the tank (located above the collector). As water in the solar collector heats, it becomes lighter and rises naturally into the tank above. Meanwhile, the cooler water flows down the pipes to the bottom of the collector, enhancing the circulation. Passive solar water heating systems are typically less expensive than active systems, but they're usually not as efficient. However, passive systems can be more reliable and may last longer.

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Solar Water Heaters for Swimming Pools28 Most solar pool heating systems include the following: - Solar collector: Solar swimming pool collectors are devices through which pool water is circulated to be heated by the sun and can be made out of different materials, as described earlier. If the hotel will only be using the pool when temperatures are above freezing, then the hotel would For Swimming pools only need an unglazed collector system. Because of their About its implementation: inexpensive parts and simple  Easiness:  Best moment: design, unglazed collectors are  Relevant initial situation: usually less expensive than glazed collectors. These Indicative cost: unglazed systems can even Depends on the type of system, how you want to use it, climate, the contractor, the system quality and your work for indoor pools in cold geographic location. Although solar swimming pool water climates if the system is heaters cost more initially than conventional water designed to drain the water heaters, the fuel they use—sunshine—is free. back to the pool when not in Incentives: use. However, glazed collector Your country may offer solar rebates or other incentives systems work better in colder that will reduce costs. weather conditions. These Lifetime systems—with heat exchangers  Can last for up to 20 years or more and transfer fluids—capture solar heat more efficiently than Return on investment time: unglazed systems but are much  Will have paid for itself after more or less 5 years. more expensive. They can be Note that costs and payback periods may vary greatly used year-‐round in many depending on the local context and on the hotel initial climates. situation. - Storage tanks: In pool systems, the swimming pool itself serves as the storage tank. - Pump: This circulates water through the filter and collector, and back to the pool. - Flow control valve: This is an automatic or manual device that diverts pool water through the solar collector. - Swimming pool covers: These are used to retain the warmth in the pool water overnight or during cold periods. - Back-‐up system: In case there is not enough sun, a gas heater can be switched on as a back-‐up system to heat the water. 28

Key RE solutions for SME hotels. Swimming Pool Solar Water Heating- n°I

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Recommendations Is a solar hot water heating system suitable for my hotel? Take particular care when sizing the solar water heating system, which will directly impact its energy performance. Data on the climatic, geometric (architectural) and user profiles of the hotel will be helpful in evaluating both the energy needs and the expected solar energy production. Will I need any permits or inspections to install a swimming pool solar water heating system? Some cities and counties have ordinances or require permits for hotel improvement construction, including solar system installations. Solar water heating systems for swimming pools Glazed collectors should only be used on indoor pools and hot water systems. There are several reasons for this: 1. Glazed collectors actually start out less efficient than unglazed collectors because the glazing reflects or absorbs a minimum of 10% of the available solar energy – so the hotels actually need a larger glazed solar collector area if using a glazed collector than it would with an unglazed collector for an outdoor pool. 2. Glazed collectors must use metal absorbers (because plastic absorbers would melt). Pool water should never be passed through a metal absorber, unless it's made of titanium. Pool water will rapidly damage copper, aluminium or steel absorbers. 3. Pools typically are operated between 26 and 30°C (79-‐86°F.). Glazed collectors are designed to operate at much higher temperatures and cost much more per square foot than unglazed collectors. The same considerations that make glazed collectors inappropriate for outdoor pools also apply to evacuated or vacuum tubes, as do a couple of others: 1. Evacuated/vacuum tubes are fragile when compared to any other type of solar collector. The tubes must never be installed close to a pool area due to the potential for glass breakage. Unlike flat plate glass, tube glass is not tempered and will break into long, sharp, dangerous shards, which could harm the pool or people in or around the pool. 2. Evacuated/vacuum tubes will create extremely high temperatures while not actively heating a pool. Starting a tube collector up after it has been in the sun can generate dangerously high temperatures and pressures!

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Solar Combi Systems29 Solar combi systems are systems delivering energy to both domestic hot water and space heating, and are based on the same type of components as the solar water heaters but are sized to make a useful contribution (30 to 40%) to total heating requirement of the heating needs (space and water heating). Normally these systems provide solar space heating in winter and domestic hot water (DHW) all year round. Solar combi systems aim to supply a building with heat for domestic hot water and space heating using two energy sources, the solar energy and any kind of auxiliary heat (e.g. gas boiler). A solar combi system in principle consists of the following main parts: - Solar collector - Solar heat exchanger - Heat storage - Auxiliary heating system - Domestic Hot Water (DHW) preparation - Space Heating (SH) system - Controller Is a solar combi system suitable for my hotel? Solar combi systems are gaining market share in SME hotels where space heating is required in addition to domestic hot water. Designing a solar combi system System performance depends on both the integrated control of its components and their respective sizing, with respect to the building and each component in relation to the others. Take particular care when sizing the solar combi system, which will directly impact its energy performance. Data on the climatic, geometric (architectural) and user profiles of the hotel will be helpful in evaluating both the energy needs and the expected solar energy production. Potential Challenges The upfront cost of purchasing and installing a solar hot water heater may be prohibitive for some accommodation providers. A solar hot water heater will have a normal lifetime of 10 to 12 years before it needs replacing, but ongoing maintenance is recommended. This may include replacing parts periodically, fitting insulation around the tank and pipes, cleaning collectors and trimming trees, which may shade the collectors. To avoid legionella and kill any pathogens in the water, the recommended thermostat temperature is usually 60°C. 29

Key RE solutions for SME hotels. Solar Thermal – Solar combi systems- n°I

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An accredited professional is required to install the systems. This can be a challenge if skilled people are not available. Roof-‐mounted tanks can be heavy, so it is important to check that a roof is strong enough to support this added weight, particularly for older buildings. (B) Solar Photovoltaic energy Photovoltaics (PV) offer a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that provide the photovoltaic effect. PV allows the hotel to produce electricity—without noise or air pollution—from a clean, renewable resource: the sun. They are a viable option for upgrading energy performance in SME hotels. Solar PV panels are constructed from materials exhibiting a property known as the photovoltaic effect that causes them to absorb photons of light and release Explaining in simple terms the photovoltaic effect Photovoltaic effect is derived from a photochemical electrons. When these free electrons reaction and it refers to any chemical reaction caused by are captured, an electric current absorption of light (including visible, ultraviolet, and results that can be used as electricity. infrared). The light excites atoms and molecules (shifts some of their electrons to a higher energy level) and thus makes them more reactive. In comparison to ordinary Photovoltaic cells are made of very reactions using thermal energy alone, photochemical pure semiconductor grade silicon reactions can follow different routes and are more likely similar to that used in computer to produce free radicals, which can trigger and sustain chips. Silicon is the most common chain reactions. element in the earth's crust. Photochemical solar technology uses photochemical Electricity is produced as photons of solar cells to produce energy. That means the radiated sunlight penetrate the element, energy from the sun in the form of light, is being transformed through a chemical process into electrical pushing electrons into a flow. A energy, which travels through the circuit to the motor, number of photovoltaic cells where electromagnets turn the electrical energy into electrically connected to each other movement (kinetic energy). and mounted on a support structure or frame is called a photovoltaic module. Multiple modules can be wired together to form an array. In general, the larger the area of a module or array, the more electricity will be produced. The photovoltaic effect produces DC (Direct Current)30 electricity. Most appliances, such as electric kettles, phones, radios, televisions, fans and electric heaters use alternating current (AC). For this reason, a converter may be necessary to change DC electricity to AC (Alternating Current) electricity. This conversion is performed by an important system component called the inverter. The array and inverter are engineered for efficiency and compatibility. Modules range in power output from about 10 watts to 300 watts. The capacity of a PV array is given in terms of its peak power production (KWp) 30

Definition of Direct current in the glossary chapter

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What are the basic components of a PV electricity power system? PV systems vary depending on whether they are connected to the grid or completely independent of the grid. A system that is connected or “tied” to the utility grid has these main components: 1. One or more PV modules, which are connected to an inverter. 2. The inverter, which converts the system's direct-‐current (DC) electricity to alternating current (AC). 3. Batteries (optional) to provide energy storage or backup power in case of a power interruption or outage on the grid and a special utility meter to let the hotel sell and/or buy electricity to and from the national grid. If there is no connection to a major energy grid (known as off-‐grid), it is useful to have some way of storing excess energy produced on sunny days for use at night or overcast days. Solar PV systems are usually coupled with an energy storage system such as lead-‐acid batteries. Solar PV systems will work almost anywhere in the world, but the amount of energy they produce depends on how much sunlight they receive—known as isolation. A solar PV system will work best if the panels can receive full sunshine from 9am in the morning to 3pm in the afternoon when the sun is higher in the sky and at its strongest. It is best to locate panels away from any shaded areas, such as below trees or adjacent to buildings. The amount of energy a solar PV system produces depends on the weather. On rainy or overcast days, panels will receive less sunlight, meaning they will produce less energy. Once installed, solar PV systems are generally very easy to maintain as they require very little maintenance and have practically no operating costs. Once installed, therefore, the electricity is essentially free. Solar PV panels can last between 25 and 40 years before needing to be replaced. However, older panels will be less efficient at converting sunlight into electricity. As solar PV systems are made up of panels, they can be adapted to suit the hotel energy needs. The more energy a hotel uses, the more panels they can install. Recommendations31 Is a PV electricity power system suitable for my hotel? A hotel can easily install a PV system in the facilities if the site is free from shading by trees, nearby buildings, or other obstructions and the hotel’s roof or property contains a large enough area for the system. 31

Key RE solutions for SME hotels, PV electricity power system- n°I

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Designing a PV electricity power system As a rule, the cost per kilowatt-‐hour goes down as the hotel increases the size of the system. For example, many inverters are sized for systems up to 5 kilowatts, so even if the PV array is smaller (say, 3 kilowatts), the hotel may have to buy the same size of inverter. Labour costs for a small system may be nearly as much as those for a large system, so the hotel is likely to get a better price for installing a 2-‐kilowatt system all at once, rather than installing 1 kilowatt each year for two years. Ways to install and/or integrate a PV system in a SME hotel Roof: About its implementation: In order to install a PV  Relevant initial situation: in order to exploit the system on a roof it is maximum of the PV system it is advisable it has a good exposure (i.e. it is tilted and south oriented, no possible to either fix the core or half shadows). array over the roof covering, so that it sits above the tiles Indicative cost: or slates, or to integrate the PV power requires a high initial investment. This means that buying a PV system is like paying years of electric tiles into the finished roof. bills up front. Your monthly electric bills will go down, but the initial expense of PV may be significant. The retail When the PV arrays are price per Watt peak for a solar module in Europe is around €4.13/Watt fitted over the roof covering, the arrays are Incentives: fixed to the roof structure To make PV systems even more affordable, several by drilling through the roof countries in Europe offer financial incentives through solar rebates and other programs. Some utilities have covering (tile, slate) directly also net metering programs, which further enhance the into the rafters. Careful economics of PV. By financing your PV system, you can planning is required. Holes spread the cost over many years, and rebates can also must also be made for lighten your financial load. cabling to and from the PV Lifetime: array to the inverters. These PV modules have a typical lifetime of 20 to 30 years holes should be weather-‐ Return on investment time: sealed with roofing sealant. The average energy pay-back time of a PV system: is about 10 years when adapted support schemes are in Integrated roof: place. PV modules, unlike any other building materials, To integrate an array into produce energy and therefore allow a building owner to recover the initial cost of their investment. Moreover, in the roof finish, PV tiles are particular, all electricity generated can be fed into the grid used to replace individual and sold to the electricity provider at a higher rate than ordinary roofing tiles or the price paid in your monthly electricity bill. This slates. Either a part of the mechanism, called a “feed-in tariff”, means your investment will pay itself in a short time. roof can be replaced with PV tiles, or the whole covering can be replaced. Note that costs and payback periods may vary greatly depending on the local context and on the hotel initial The PV tiles are anchored situation. onto the roofing battens and are screwed in place.

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The tiles overlay like single-‐lap roof tiles and are connected electrically together with the cabling taken back to the electrical inverter. Façades integration: PV systems that are integrated into the façade of a building are called Building Integrated PV (BIPV). BIPV can be used in many different ways in the building envelope. In order to get the most out of the PV system, it is advisable to make sure it has good sun exposure (i.e. tilted and oriented towards the south, and not covered by full or partial shadows). In these kinds of applications, different types of modules can be used. The options include classic (framed) modules, flexible crystalline or thin-‐film-‐on-‐metal substrate, roof tiles with solar cells, transparent monocrystalline modules, modules with coloured solar cells, and semitransparent micro perforated amorphous. For this reason, BIPV can be applied on both new and existing buildings and can allow for a variety of different designs. A building façade with good design and structure is the first requirement for installing a good BIPV system. Once this prerequisite is fulfilled, BIPV can be used in a broad range of ways, other than for producing electricity. Other benefits can include weather protection, heat insulation, sun protection, noise reduction, and modulation of daylight. Window integration: Glass PV laminates can be applied to windows providing a semi-‐transparent façade. The transparency is normally achieved using one of the following methods: The PV cell can be so thin or laser-‐grooved that it is transparent. This will provide filtered visibility to the outside. Semi-‐transparent thin-‐film modules are especially appropriate for this application. Another option is to use semi-‐transparent crystalline solar cells. Crystalline solar cells on the laminate are spaced so that partial light filters through the PV module and illuminates the room. Light effects from these panels lead to an ever-‐changing pattern of shades in the building itself. Adding layers of glass to the base unit of a semitransparent PV glass module can offer thermal and acoustic insulation. Other special features can also be designed according to the individual requirements of each application. These PV glass modules are truly multifunctional.

Chose the perfect orientation to maximize energy generation! The best orientation for a hotel PV system is tilted and oriented towards the south. However, some variation in the orientation can be allowed without losing too much of the system’s productivity. For instance, considering the mean latitude value for central Europe, a +/-‐ 15° tilt shift can involve a slight 2% loss of energy generation, while the same shift from the southern direction would reducing a system's performance by a mere 3%.

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Will I need any permits or inspections to install a PV system? Photovoltaic systems are a mature and very flexible technology that can be easily adapted to the various needs of a hotel, from electricity production to sun and noise protection. The hotels will need to fulfil special requirements depending on the PV systems they are planning to install. An accredited professional may be required to install the system. Roof mounted solar panels can be heavy, so it is important to ensure a roof is strong enough to support this added weight, particularly for older buildings. (C) Biomass boilers Biomass is a fashionable, fancy word that really just means plants and manure used as fuel (especially ones grown specifically for that reason). Wood fuel gathered by people in an African country is biomass; ethanol, used to make diesel for car engines, is also biomass; and chicken manure used to fire biomass power plants is biomass too. The great thing about biomass is that it's a kind of renewable energy: plants grow using sunlight, which they convert into chemical energy and store in their roots, shoots, and leaves. Burning biomass releases most of that energy as heat, which can be used to warm our homes, generate electricity, and fuel our vehicles. Biomass is more environmentally friendly and sustainable than fuels such as coal for three main reasons:32 a) Unlike coal (which takes many millions of years to form from plant remains), biomass can be produced very quickly, and the resource can be replenished relatively quickly by growing new plants or trees to replace the ones we cut down and burn. In this regard, biomass can be genuinely sustainable. b) Plants absorb as much carbon dioxide from the air when they grow as they release when they burn, so in theory there is no net carbon dioxide released and burning biomass does not add to the problem of global warming. (That's why biomass is sometimes considered a carbon neutral form of energy.) In practice, however, the process of growing, harvesting, and transporting biomass may use energy (tractors or trucks running on oil might well be involved, for example). This reduces the overall environmental benefit of using biomass. c) Materials that could be used as biomass for fuel are often simply wasted or sent to landfill. Burning something like waste wood chips from a lumberyard or chicken manure from a poultry factory not only gives us energy, it also reduces the waste generated by these kinds of activities. A biomass boiler is a sophisticated technology that can heat an entire building, performing the same job as a central-‐heating boiler powered by natural gas, oil, or electricity. In other words, it can provide both the hotel heating and hot water needs and it can power modern under-‐floor central heating. A biomass boiler differs greatly from labour-‐intensive coal-‐fire in that it 32

Energy Saving Trust, UK - http://www.energysavingtrust.org.uk/Generate-your-own-energy/Wood-fuelled-heating

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requires significantly less effort to operate, clean or maintain. All the hotel has to do is fill it with biomass (generally, the hotel would use wood pellets, wood chips, chopped logs, grain stalks, or a combination of these) and periodically (typically every 2-‐8 weeks, depending on the appliance) empty out the ash, which they can recycle in their compost. While wood-‐burning stoves have to be manually filled with logs, biomass boilers are often completely automated: they have a large fuel hopper on the side that automatically tops up the furnace whenever necessary. Unlike a coal fire, the hotel don't have to mess around trying to get the fuel lit: biomass boilers have simple, automated electric ignition systems. It is perfectly possible to run a biomass boiler all year round, but in summertime, when the hotel doesn't need heating, it might be excessive to have the boiler running just for domestic hot water. Many facilities switch off their biomass boilers entirely for the summer, relying on solar thermal hot water systems (e.g. glass panels on the roof that warm up water using the sun's heat), electrical immersion heaters (a heating element fitted inside a hot water tank), or an electric shower to tide them through until fall or winter. It's perfectly possible to couple together a biomass boiler with a solar hot-‐water panel so the boiler switches on when the panel can't produce enough hot water for the hotel needs. Biomass boilers and wood-‐burning stoves are generally considered far more environmentally friendly than heating systems powered by fossil fuels, but one drawback is worth bearing in mind: although burning biomass is cleaner than burning coal, it still produces air pollution. There are many advantages to using biomass boilers and wood pellets. No trees need to be cut to make the pellets. Instead, they can be made from leftover wood from the flooring and cabinet industry. Burning pellet fuel in this way can actually help reduce waste created by lumber production or furniture manufacturing. There are no additives put into the pellets to make them bind together, burn longer, or burn more efficiently. Pellet fuel does not smoke or give off any harmful fumes during the burning process except during ignition and at the end of the process. The burning process is highly combustible and produces little residue as long as the hotel’s stove is burning the way it was intended. Using this fuel is environmentally friendly as it reduces the need for fossil fuels. Wood Pellet Burners come in a few different applications. There are simple Wood Pellet Stoves that burn from 8,000 BTUs to 55,000 BTUs. There are Pellet Furnaces that burn from 8,000 BTUs to 75,000 BTUs. There are Wood Pellet Boilers that burn from 10,000 BTUs up to and over 190,000 BTUs.33 With the wood pellet boiler the hotel will need some form of electricity to run the blowers, auger, and control boards. If the hotelier intends on using a Wood Pellet Stove for “emergency heating” they needs to consider a battery backup system, a generator, or some type of solar power. The cost of pellet fuel may depend on the geographic region where it is sold, and the current season. Pellet fuel costs about the same as cord wood and less than most other fuels. Pellet fuel is estimated to be only about one-‐third the cost of electricity that is used for heating. This 33

See BTU explanation at the glossary section

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could mean a large savings over the years! Pellet boilers can vary depending on the stove manufacturer. Some boilers are very fancy with porcelain, nickel and brass. Some are very plain and look like a large toolbox or a small refrigerator. Wood Pellet Boilers can have computer control panels and digital thermostats including infrared remote controls. Other Wood Pellet Boilers have dials to control auger and blower speed.34 Wood chips are other option that may be used as a biomass solid fuel for the boilers. Woodchips are a medium-‐sized solid material made by cutting, or chipping, larger pieces of wood. Recommendations35 Is a wood fuelled heating system suitable for my hotel? To tell if wood fuelled heating is right for a hotel facility, there are a few key questions to consider: 1. Does the hotel have enough space? The hotel will need a large dry area close to the boiler to store the wood. Ideally this should be close to where the wood is delivered to the hotel to minimise the distance it has to be carried. 2. Does the hotel have a suitable flue? The hotel needs a vent, which is specifically designed for wood fuel appliances, with sufficient air movement for proper operation of the stove. The existing chimney can be fitted with a lined flue, which is relatively inexpensive. 3. Can the hotel comply with safety and building regulations? If the hotel is considering buying a biomass stove or boiler, ask about emissions (sales brochures usually mention how much dust, carbon monoxide, and oxides of nitrogen appliances produce); and the hotel must be sure to find out whether there are pollution or other planning restrictions in the area before the hotelier commits to an expensive purchase. 4. Does the hotel need planning permission? The hotel needs to talk with the local authority if the flue will extend 1m or more above the height of the facility roof, or the hotel is in a Conservation Area or World Heritage Site and the hotel plans to install a flue on the principal elevation visible from a road. As with any form of heating that involves burning fuel, be absolutely sure to install a carbon monoxide detector for the hotel own safety and health: badly ventilated heating appliances can kill, whether they're environmentally friendly or not! 34 35

Wood Pellet Stove 101, By Eric J. Kacvinsky, Kinsman Stoves, LLC. And Brookfield Stoves & Supply Energy Saving Trust, UK - http://www.energysavingtrust.org.uk/Generate-your-own-energy/Wood-fuelled-heating

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(D) Geothermal energy (ground source heat pumps) Geothermal energy – the heat of the earth -‐ can be recovered at temperatures ranging from 35°C to 150°C and used to heat buildings, greenhouses, and aquaculture facilities and to provide industrial process heat. Higher temperature geothermal energy can also be used to generate electricity. 37 One of the most commercially accepted geothermal technology is the geothermal heat pump (GHP), also described as the geo-‐exchange or ground source heat pump. A heat pump is a device that can move heat from one place to another. Whereas heat flows naturally from a point of high temperature to one of low temperature, heat pumps are used to move heat in the opposite direction. A GHP takes advantage of the natural and nearly constant heat of the earth, which can be used as a heat resource in the winter and a heat sink in the summer. GHPs can be used for heating and cooling buildings, water heating, snow melting and swimming pool heating. It is not a new technology but the use of GHPs is growing in the building heating/cooling sector. Although GFPs can have high initial costs, when designed and installed properly a GHP system can quickly pay for itself through energy cost savings. GHPs are one of the most energy efficient and cost effective cooling and heating systems available, using much less energy than conventional heating/cooling systems and delivering 3 to 4 times the energy they consume. This is because a GHP moves heat to or from the ground instead of generating it from heating coils or electrically operated compressors. GHP operating costs are significantly lower than conventional heating and cooling systems and they operate for 20 years or more with minimal maintenance. Hotels using GHPs in North America report energy savings of 40%-‐70% in winter and 30%-‐60% in summer. GHPs are most often used for space cooling and are usually designed to meet the entire space-‐ conditioning load of a building. When used for heating, they are usually designed to provide approximately 80% of the heating demand. A backup heating system is usually necessary for installations operating year round in temperate regions. Other advantages of GHPs for tourism businesses include: - Improved indoor air quality, including comfortable humidity levels, reduced pollutants, and reduced allergens from the lack of combustion; - Absence of reliance on air from outside the building; and - Absence of aboveground equipment (such as cooling towers and air coils) that might jeopardize exterior aesthetics. 36

Switched on, Renewable Energy Opportunities in the Tourism Industry. United Nations Environment Programme Division of Technology, Industry and Economics 37 Switched on, Renewable Energy Opportunities in the Tourism Industry. United Nations Environment Programme Division of Technology, Industry and Economics

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GHP design is based on soil characteristics, the type of ground material, moisture content and ground temperature. GHPs can be used in most regions except desert areas where dry and sandy soils do not efficiently transfer heat. The technology is founded on the principle that the earth’s interior temperature remains relatively constant during most of the year. When the GHP system operates in the heating mode, heat from groundwater is absorbed by a circulating refrigerant. The heated refrigerant is then pumped towards a heat pump that transfers the heat from the refrigerant to water. This heated water can then be used directly as hot water or circulated through radiators for space heating. Such installations are called refrigerant (or water)-‐to water systems. Alternatively, air can be blown over the heated pipes and the heat delivered to interior spaces through a system of air ducts, which is referred to as a water-‐to-‐air system. When GHPs are operated in the cooling mode, the process is reversed. The refrigerant absorbs the heat from interior spaces of the building and transfers it to the ground. One of the most important aspects of heat pumps in relation to the heating/cooling of buildings is the direct relationship between the efficiency of the unit (and the energy required to operate it) and the difference in temperatures. In heat pump terminology, the difference between the temperature where the heat is absorbed (the "source") and the temperature where the heat is delivered (the "sink") is called the "lift." The larger the lift, the greater the electric power input required by the heat pump. This is the basis for the efficiency advantage of the geothermal heat pumps over air-‐source heat pumps. An air-‐source heat pump must remove heat from cold outside air in the winter and deliver heat to hot outside air in the summer. By contrast, the GHP retrieves heat from relatively warm soil (or groundwater) in the winter and delivers heat to the same relatively cool soil (or groundwater) in the summer. As a result, geothermal heat pumps are always pumping the heat over a smaller temperature difference than the air-‐source heat pump, regardless of the season. This leads to higher efficiency and lower energy use. The heat removed from the indoor air during the summer can also provide a low cost source of hot water. In cold weather, however, a part of the GHP’s heating capacity must be diverted for water heating, which lowers the heat available for space heating. Also, water heating can only be done when the GHP is in operation. During periods of the year when neither space heating nor cooling is required, an alternative water heating method is required. GHP systems are most cost effective when space cooling is required for significant periods during the year. Geothermal Heat Pump Systems38 GHP systems include three principal components: an earth connection, heat pump; and heat distribution subsystem. These are described below: Earth Connection Subsystem The earth connection subsystem consists of geothermal wells or trenches (or, for open loop systems, ponds, lakes, rivers, or irrigation ditches where clean water can be recycled), and pipes (loops) through which the refrigerant (or ground water) is circulated. 38

Switched on, Renewable Energy Opportunities in the Tourism Industry. United Nations Environment Programme Division of Technology, Industry and Economics

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Using the earth as a heat source/sink, a series of pipes knows as a "loop" is buried in the ground near the building to be conditioned. The loop can be buried either vertically or horizontally and contains a circulating fluid (either water or a mixture of water and antifreeze) that absorbs heat from (or relinquishes heat to) the surrounding soil, depending on whether the ambient air is colder or warmer than the soil. Currently, horizontal systems constitute about half of the installations, vertical systems 35%, and pond or other systems approximately 15%. Geothermal Heat Pump Unit The foundation of any GHP system is the heat pump unit itself. The most commonly used unit is a single package water-‐to-‐air heat pump. Such a unit consists of a single enclosure, about the size of a small gas furnace, housing a refrigerant-‐to-‐water heat exchanger, refrigerant piping, control valves, compressor, air coil (heats in winter; cools and dehumidifies in summer), fan, and refrigerant piping. Most GHP units use an R-‐22 refrigerant gas, which is considered a transition gas with an ODP (ozone depletion value) of 0.05, i.e. only 5% of the most damaging refrigerants R-‐11 and R-‐12. R-‐22 is scheduled to be phased out by 2030. The capability to heat water can be added to most equipment using components consisting of a refrigerant-‐to-‐water heat exchanger and a small circulating pump. Field installed piping connects this unit to the existing domestic hot water heater. Because geothermal heat pumps are so much more efficient than other water heating systems, manufacturers are beginning to offer "full demand" systems using a GHP specifically to heat hot water in climates where the GHP can be operated most of the year. Heat Distribution Subsystem As GHP systems are usually sized to meet cooling requirements, backup heating systems are usually required. Conventional ductwork is generally used to distribute heated or cooled air from the geothermal heat pump throughout the building when a water-‐to-‐air system in used.

The most cost-‐effective GHP system depends entirely on local ground conditions. An inspection of the site and ground conditions is therefore mandatory before the best method can be selected. There are two basic types of GHP systems: ground-‐coupled systems and ground/surface water heat pumps. Ground-‐coupled systems Ground-‐coupled systems use either vertical loops in boreholes, or horizontal pipe loops installed in trenches in direct contact with the earth:

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Vertical loops in boreholes: Placing the loops vertically in the ground requires more expensive drilling for a borehole than digging a trench. However, as the pipes are buried deeper in the ground (46 to 152 meters), they are in a more stable thermal zone and thus more efficient. The temperature in the ground at 30 meters does not vary during seasons as much as surface soils at 1–2 meters. Vertical systems can therefore be a better option in areas of extreme temperatures. They are also easier to install when the exterior spaces have already been landscaped and site disruptions need to be minimised. Horizontal loops in trenches: Horizontal installations are cheaper to install than vertical designs as the loops are laid out in a trench (1 to 2 meters below the ground), and trenching is cheaper than drilling. They are also a better option when the soil includes hard rocks. On the downside, trenches need large surface areas and longer pipes, which are often coiled to maximise heat transfer capacity.

Ground and Surface Water Heat Pumps have been used since the early 1970s. - Ground water and surface water systems can be used when there is an adequate supply of water either in wells, lakes or rivers. The well, lake or river water is pumped through supply pipes into the building and returned to the source through a discharge pipe. This method of ground coupling should be considered by hotels situated near lakes and large ponds, where the loops can be submerged or where the ground water supply is relatively close to the surface. As water provides a stable thermal zone, this technology can be easily installed and is highly cost effective where temperatures are not extreme. - Open loops -‐ Open loop systems can be used when there is an adequate supply of useable groundwater. The water is pumped through supply pipes into the building and returned to the ground through a discharge well. An additional heat exchanger is often installed between the building water piping systems and the ground water piping system. However, when the water has a high content of dissolved minerals (>100ppm) and/or contains hydrogen sulphide (which gives off the odour of rotten eggs), closed loop systems need to be used. - Closed loops -‐ For a closed loop system, a closed heat exchanger can be placed within a lake and the working fluid pumped through it and into the building being heated or cooled.

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Recommendations An important consideration for hotel projects is that GHP can often be easily retrofitted to existing buildings. All components (including compressors, heat exchangers, fans, filters and controls) are ‘packaged’ into a single cabinet installed in a small indoor space. As with all renewable energy choices, the scope for GSP should be considered at the onset of the building or project design process. This can facilitate better use of space and lower costs, particularly because a GHP system: - Requires very little mechanical space; - Eliminates the need for a boiler room; - Lowers the size of air distribution ducts, which can allow higher ceilings that can be an asset for accommodation properties, museums, galleries and visitor centres; - Allows for greater individual temperature control, an important requirement for accommodation business; and - Eliminates exterior equipment such as cooling towers and split systems. Geothermal systems can be noisy to install and run, so the location in a facility is an important consideration. However, since the majority of the geothermal heat pump system will be underground, it will free up significant space, will not obstruct views and can be integrated into a facility design. Installing the system requires considerable civil engineering work. Thus, it is easiest to install these systems in new-‐build projects, as they can be included in the building design. It may be difficult and expensive to install a geothermal system into an already existing facility. When installed horizontally, piping is laid only a few meters below the ground surface, usually between 2 and 5 meters. When installed vertically, piping can reach depths of 100 meters. Whilst most of a geothermal system is installed underground, some of it exists above ground. The parts that exist above ground are generally small and easy to install and maintain. Dual-‐fuel (Combi) heating systems These systems use GHP as the primary resource and fossil fuel boilers/furnaces as backup. Duel-‐fuel systems can be easily retrofitted into existing fossil fuel systems. Heating swimming pools As with water heating, swimming pools can be heated with GHP systems that recover and reuse the waste heat rejected to the ground during the reverse space cooling operation. What will it cost to install a geothermal heat pump? As various models of geothermal systems exist, costs vary. Models that perform more than one function, for example heating, cooling and providing hot water, will consist of more parts and thus be more expensive.

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Installation costs will vary both on the chosen model and also the method of installation. Laying pipes vertically will be more expensive but may be necessary if space is limited. The initial costs of installation are high but once the system is installed there are considerable savings on electricity costs. What will it cost to run and maintain a geothermal heat pump? The cost of running a geothermal heat system will largely depend on the energy efficiency rating of the system. Energy efficiency ratings for geothermal systems are indicated as a Heating Seasonal Performance Factor (HSPF). The HSPF will have a big impact on the electricity needed to run the system and therefore cost. In general, the higher the HSPF rating, the less electricity the unit will use to do its job. Geothermal systems have very low ongoing costs; they last for up to 50 years without significant maintenance or repair costs. Maintenance costs are low because geothermal systems are made of only a few, simple mechanical parts that are very durable. Most components of a geothermal system are protected from the weather as they are installed underground. The parts of the system that exist inside the facility are easily accessible, making maintenance of them easy. Challenges The main challenges will be the high initial costs of purchasing and installing the geothermal system. However, the money saved on operating costs will pay for the initial investment in a few years. The length of the pay-‐back period will depend on several factors, including the size of the system that the facility requires, the model of the system, how the system is installed, whether it is installed at the time of building the facility or installed into existing infrastructure, the energy rating of the pump and the climate surrounding the facility. It will also depend on what other heating options are available. Laying the piping system may require a large area and thus may not be appropriate for very small hotel developments. Although appropriate space to install the piping will be necessary, the land above the piping can be used after installation for other purposes. Considerable engineering work is required to install the piping, particularly if installing piping vertically. Drilling costs required for installing vertical piping can be very expensive. Heat pumps can also be noisy to set up and operate. The condensing unit may be particularly noisy and may interfere with the enjoyment of quiet at the hotel’s facility. The hotel should inquire about noise levels and compare the noise levels of different models, or consider installing sound insulation around the heat pump. It may be necessary to engage with specialists, engineers and local government for a number of reasons. This can become expensive and time consuming. It may be necessary to engage with specialists when deciding whether or not a geothermal system will be a valuable investment, which can require carrying out geological assessments; understanding what the system can be used for, what model should be purchased, and how and where it should be installed; and ongoing maintenance.

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(E) Micro-‐hydropower systems The energy in falling water can be converted into electrical energy or into mechanical energy by using it to power hydraulic turbines. In the past, hydropower stations were often built as a part of large dam projects. Due to the size, cost, and environmental impacts of these dams (and the reservoirs they create), hydro developments today are increasingly focused on smaller-‐scale projects. Micro hydro is a term used for hydroelectric power installations that typically produce up to 100 kW of electricity. Only projects that have less than 10 MW of generating capacity are considered here as small-‐scale hydro (SSH) projects. This definition also includes mini-‐hydro) (less than1 MW), micro-‐hydro (less than 100 kW and pico-‐hydro (less than 1 kW). Small-‐scale hydro technology is efficient and commercially proven. Many companies supply small-‐scale hydro equipment in areas of the world where hydro resources are located. Hydro potential is very site specific but can be a viable option for hotels in mountainous areas where there are streams that flow with a sharp downward gradient, and can produce enough electricity for an SME hotel. Any small river or large stream with a reasonably constant water flow throughout the year can be considered. Small-‐scale hydro systems are modular and can generally be sized to meet individual or community needs. However, the financial viability of a project is subject to the available water resource and the distance the generated electricity must be transmitted. The two critical variables that determine the viability of a hydro site are: - The vertical drop at which the water falls (meters), referred to as the effective head; and - The total amount of water that ‘falls’ (cubic meters per second), called the flow rate. The power (P) that can be generated by falling water is approximately 7 times the product of the flow rate (Q) and the effective head (H): P (kW) = 7 x Q x H. Therefore, the greater the available head, the lower the required water flow, and vice versa. For example, to generate 1 kW of electricity, a hydro system with a head of 100 meters will require 10% of the water flow that a site with a head of 10 meters requires. Low head sites are generally less than 10 meters while high head sites are greater than 30 meters. Sites with very low head (<3m) present technical and economic challenges. Low head hydro equipment must accommodate considerably more water flow than equivalent capacity high head equipment and must be physically larger, which requires larger civil works. Also, the turbine’s output shaft speed decreases with lower head. As a result, low head schemes generally need gears to drive high-‐speed generators. A head of one metre and a flow rate of 54 litres per minute are considered the minimum requirements to generate electricity. 39

Switched on, Renewable Energy Opportunities in the Tourism Industry. United Nations Environment Programme Division of Technology, Industry and Economics

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How does a micro hydropower energy system work?40 Micro hydropower is based on very About its implementation: simple concepts. Moving water turns  Easiness:  Best moment: a turbine, the turbine spins a  Relevant initial situation: generator, and clean electricity is produced. Hydropower systems use Indicative cost: the energy in flowing water to Costs for installing a hydro system vary a lot, depending on the location and the amount of electricity it can produce electricity. generate. Building a small-scale 5kW hydro-power suitable for an SME hotel might cost €20,000 - €25,000 Although there are several ways to including installation. Maintenance fees are relatively small in comparison to other technologies. A good harness moving water to produce hydroelectric system can provide a steady, low cost and energy, run-‐of-‐the-‐river systems, reliable source of electricity. which do not require large storage reservoirs, are often used for micro Incentives: It's important to take advantage of rebates or tax credits hydro systems. A ‘run-‐of-‐river’ available for micro hydropower energy installations. system means that the water passing through the generator is directed Lifetime back into the stream with relatively  Can last for 20 years or more little impact on the surrounding Return on investment time: ecology. In run-‐of-‐river systems the  Well-sited micro hydropower energy system can turbine generates electricity as and usually pay for themselves within 5-10 years when the water is available and provided by the river, meaning that Note that costs and payback periods may vary greatly they have no or relatively small water depending on the local context and on the hotel initial storage capability. When the river situation. dries up and the flow falls below some predetermined amount or the minimum technical flow for the turbine, the electricity generation stops. What are the basic components of a micro hydropower energy system? The construction details of a microhydro plant are site-‐specific, but the common elements of all hydroelectric plants are always present. Micro hydropower energy systems consist of: - Water conveyance: channel, pipeline, or pressurized pipeline (penstock) that delivers the water; - Turbine or waterwheel: transforms the energy of flowing water into rotational energy; - Alternator or generator: transforms the rotational energy into electricity; - Regulator: controls the generator; and - Wiring: delivers the electricity. For micro hydropower energy systems, a portion of a river’s water is diverted to a channel, pipeline, or pressurized pipeline (penstock) that delivers it to a waterwheel or turbine. An alternative is to convey the water through a low-‐slope canal, running alongside the river to the 40

Key RE solutions for SME hotels, Micro hydropower energy system- n°I

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pressure intake or fore bay and then in a short penstock to the turbines. The moving water rotates the wheel or turbine, which spins a shaft. Several different types of water turbines can be used in micro hydro installations. For hilly or mountainous sites where big heads may be available, a Pelton wheel can be used. For low head installations, Francis or propeller-‐type turbines can be used. At the outlet of the turbines, the water is discharged to the river via a tailrace. Is a micro hydropower energy system suitable for my hotel? To build a small hydropower system, the hotel needs access to flowing water and a sufficient quantity of falling water must be available, which usually -‐ but not always -‐ means that hilly or mountainous sites are best. Designing a micro hydropower energy system In order to take full advantage of the electrical potential of small streams, a suitable site is needed. Before the hotel can begin designing a hydro system or estimating how much electricity it will produce, the hotelier will need to make four essential measurements: - Head (the vertical distance between the intake and turbine) - Flow (how much water comes down the stream) - Pipeline (penstock) length - Electrical transmission line length The hotel will need to determine the amount of power that it can obtain from the flowing water on the hotel’s site. The power available at any given moment is the product of what are called flow volume and head. Waterpower is the combination of head and flow. Both must be present to produce electricity. Consider a typical micro-‐hydro system: water is diverted from a stream into a pipeline, where it is directed downhill and through the turbine (flow). The vertical drop (head) creates pressure at the bottom end of the pipeline. The pressurized water emerging from the end of the pipe creates the force that drives the turbine. More flow or more head produces more electricity. Will I need any permits or inspections to install a micro hydropower energy system? The ecological impact of micro-‐hydro systems is minimal; however, even low-‐level environmental effects must be taken into consideration before construction begins. Stream water will be diverted away from a portion of the stream, and proper caution must be exercised to ensure there will be no damaging impact on the local ecology or civil infrastructure. Large-‐scale dam hydropower projects are often criticized for their impacts on wildlife habitat, fish migration, and water flow and quality. However, small, run-‐of the-‐river projects are free from many of the environmental problems associated with their large-‐scale relatives because

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they use the natural flow of the river, and thus produce relatively little change in the stream channel and flow. If a hotel’s hydropower system will have minimal impact on the environment and it is not planning to sell the energy to a utility, there is a good chance that the process the hotel must go through to obtain a permit won’t be too complex. The hotel will also need to determine how much water it can divert from their stream channel. Some countries control water rights and the hotel may need a separate water right to produce power, even if the hotel already has a water right for another use. Useful points to consider: - Microhydro produces a continuous supply of electrical energy in comparison to other small-‐scale renewable technologies. - The higher the head the better, because hotel will need less water to produce a given amount of power, and it can use smaller, less expensive equipment. - If the hotel site produces a large amount of excess energy, some power companies will buy back its electricity overflow. - If hotel decide to sell, it will need to contact the utility to find out application procedures, metering and rates, and the equipment the utility requires to connect the system to the electricity grid. (It is generally best to do this before the hotel purchases its micro hydropower energy system.) Challenges - This solution is not available in areas of flat topography or in dryer climates. - Microhydro is reliant on stream flow, which may be highly variable. - The systems can sometimes create visual intrusion on the stream or waterfall. - Flooding can potential damage microhydro equipment.

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(F) Wind energy Generating electricity from wind is a mature technology and economically competitive with most fossil fuel applications, depending on the location and size. Wind turbines offer an attractive energy option for hotels situated in coastal areas, flat open plains and mountain passes exposed to consistent wind flows. Once a wind turbine is properly installed, it requires little maintenance and does not emit greenhouse gasses or other airborne pollutants. The most common wind turbines for generating electricity today use two or three blades revolving around a horizontal axis connected to a generator. They are mounted on concrete or steel towers and usually include a gearbox, generator, and other supporting mechanical and electrical equipment such as controllers, inverters, and/or batteries. The power that can be generated from a modern wind turbine in practice is related to the square of the wind speed, although theoretically it should be related to the cube of the wind speed. Consequently, the availability of good wind speed data is critical for assessing the feasibility of any wind project. Most About its implementation: commercial wind turbines operating  Easiness: today are placed at sites with  Best moment:  Relevant initial situation: average wind speeds greater than 6  meters/second (m/s) or 22 km/h, Indicative cost: although annual wind speeds over Installation costs vary greatly depending on local zoning, 5.5 m/s can also be viable. A high-‐ permitting, and utility interconnection costs. The cost of quality wind site will have an annual installing a wind energy system depends very much on the size and type of system you choose. A small, roofaverage wind speed in excess of 7.5 mounted 6 kW system can cost you around €20000 m/s (27 km/h). Although the wind covering all equipment, masts, battery storage (if resource for any site is intermittent, required) and installation. it can be highly predictable and thus Smaller systems require smaller initial outlay, but cost the output from wind turbines can be more per watt. Taller towers cost more, but usually integrated into existing electrical reduce the payback period. grids with a high degree of confidence. Incentives: It's important to take advantage of rebates or tax credits available for small wind system installations. Wind energy systems are available in sizes ranging from less than one Lifetime  Can last for 20 years or more kilowatt (small scale) to 100-‐700 kW (medium scale) to over 700KW (large Return on investment time: scale). For commercial utility-‐sized  Well-sited small wind turbines can usually pay for projects, the most common turbines themselves within 10-15 years sold are in the range of 750 kW-‐2000 Note that costs and payback periods may vary greatly kW (2.0 megawatts), although the depending on the local context and on the hotel initial newest commercial turbines are situation. rated at 2.5 megawatts. A typical 750 41

Key RE solutions for SME hotels, Micro hydropower energy system- n°I

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kW turbine has a blade diameter of 35 meters and is mounted on a 50-‐metre concrete or steel tower. The minimum height for a tower supporting a small-‐scale turbine is generally 10m. Wind projects can vary in size from a one-‐turbine installation to a large number of turbines erected at an individual site, which is often referred to as a wind farm. Utility-‐sized commercial wind projects are usually constructed as wind farms, and wind projects have been successfully built to power a wide range of applications in diverse and often extreme environments. For most hotels, small-‐ and medium-‐scale wind turbines are the most suitable. Although a large-‐scale turbine or wind farm is generally outside the scope of hotel businesses, directly purchasing the electricity – or even owning part or all of a turbine – can be an economically attractive option for a large organization or a consortium of smaller organizations. Wind projects can be constructed as either “build-‐own-‐operate” facilities under long-‐term power purchase contracts, or as turnkey facilities. For large grid-‐connected turbines, the wind energy industry is competitive and mature and there are many project developers and manufacturers to choose from, depending on location. Ten major international manufacturers currently produce 97% of all wind turbines in power outputs ranging from a few hundred watts to several megawatts. Wind turbines produce no pollution when they are operating, but care must be taken in sitting turbines to account for local environmental impacts, including visual amenity, noise and avian impacts. With properly designed and sited modern turbines, these impacts can be mitigated. In areas of very high visual amenity (such as coastal national parks), wind development may not be compatible with community values. How does a small wind energy system work?42 Simply stated, a wind turbine works in a way that is opposite to a fan. Instead of using electricity to make wind, like a fan, the turbines use wind to make electricity. Wind turbines convert the kinetic energy in wind into mechanical power that runs a generator to produce clean electricity. Small wind turbines have lower energy output than large commercial wind turbines, such as those found in wind farms. There are two different types of small wind turbines on the market: - Horizontal-‐axis wind turbines (HAWT) have the main rotor shaft and electrical generator at the top of a tower and are pointed into the wind by a simple wind tail. Small HAWT can also be installed on roofs. - Vertical-‐axis wind turbines (VAWT) have the main rotor shaft arranged vertically. The key advantage of this arrangement is that the turbine does not need to be pointed into the wind. By using VAWT, the generator and gearbox can be placed near the ground. VAWT are able to take wind from multiple directions, which makes them more suitable for use at low heights, on rooftops, and in urbanized areas. Their ability to function well at low heights is particularly important when considering the cost of the high tower 42

Key RE solutions for SME hotels, small wind energy system- n°I

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necessary for traditional HWAT.

There are also two different ways to install small-‐sized wind turbines: - Mast-‐mounted: these are freestanding, are erected in a suitably exposed location, and are often around 2.5kW to 10kW in size. - Roof-‐mounted: these are smaller than mast mounted systems and can be installed on the roof of an SME hotel where there is suitable wind exposure. Often these are around 1kW to 5kW in size. For hotel businesses in remote areas that remain open year-‐round, a hybrid system combining wind power with solar photovoltaic (PV) or other generating options offers several advantages over a single-‐generator system. In many areas, wind speeds are lowest when there is excess solar energy (for example in the summer), and highest when solar energy is minimal (i.e. winter). As the peak operating periods for wind and PV occur at different times of the year, hybrid systems can be designed to provide higher consistency of energy generation year-‐round. For those times when neither the PV modules nor the wind turbine are working (e.g. at night during low winds), most systems include battery storage and/or a diesel or petrol generator that can recharge the batteries as a backup. For hotel businesses, wind turbines can also be used to power electric water pumps. The turbines can be placed at some distance from the well (or other water source) and often require much less maintenance. Although standard centrifugal and volumetric pumps can be used, the manner in which they are selected and installed is different from water pumping systems powered by the grid. Of course, windmills that directly drive the water pump can also be used. Is a small wind energy system suitable for my hotel? A small wind electric system will work for the hotel if: - The hotel property has a good wind resource; - No large obstacles like buildings, trees or hills are near the hotel; - There is enough space; - The local zoning codes or covenants allow wind turbines; and - The hotel is comfortable with long-‐term investments. Designing a small wind energy system For hotel applications, the hotel should establish an energy budget to help define the turbine size the hotel would need. Depending upon the average wind speed in the area, a wind turbine in the range of 5 to 20 kW would be fine to make a first significant contribution to the energy demand of an SME hotel. Wind turbine manufacturers will help the hotel size its system based on the hotel electricity needs and the local wind patterns. Manufacturers can provide the hotelier with an expected

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annual energy output of the turbine as a function of annual average wind speeds, and they can also tell the hotel the maximum wind speed at which the turbine is designed to operate safely. This information will help he hotelier decide which turbine size will best meet its electricity needs. Will the hotel needs any permits or inspections to install a small wind energy system? Turbines used for hotels are much quieter than their wind farm counterparts, but they will need to check with the local authorities because turbines exceeding a certain size may not be permitted in some areas. Small vertical turbines emit less noise, are less conspicuous and are considered to be generally more aesthetically pleasing than their small horizontal-‐axis counterparts. A hotel wind turbine can be a relatively large device, needs to be high above nearby buildings and mature tree lines, and often must abide by zoning laws. Useful points to consider: - Small wind turbines can be mounted on a freestanding pole or mast, or on a building above the highest point of the roof. - Larger turbines should be mounted on a suitable tower to raise them above any nearby obstacles. A good rule of thumb is that turbines should be at least 9 m higher than anything within 150m. In general, an effort should be made to make sure that a small wind turbine is as far away as possible from large upwind obstacles. - The economics of a wind system are very sensitive to the average wind speed in a hotel and the electricity prices. As a general rule, the hotel facility should have at least a 15 km/h average wind speed and be paying at least 10€ cents/kWh for electricity. Some new vertical axis models are now being produced to generate electricity with wind speeds as little as 8 km/h. Challenges - The upfront cost of purchasing and installing a wind energy system may be prohibitive for some hotel businesses. - A wind energy system can last for 20 years and maintenance is recommended twice per year, which will be a reoccurring cost. Maintenance includes checking the blades for cracks, checking any moving parts, tightening bolts and inspecting the tower. An accredited professional is required to install the hotel system. This can be a challenge if skilled people are not available in the hotel location.

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ANNEX VI. BEHAVIOURAL CONSIDERATIONS

STRATEGI ES

AND

6.01 S TAFF T RAINING Involving the hotel’s staff in the energy action plan is not only essential for the hotel energy efficiency policy to be successful, it is also a very effective way to inspire them and give new meaning to the business! Indeed, as long as the hotelier explains to the staff members that energy efficiency is part of the hotel’s environmental strategy, most of them will be happy to contribute to its efforts for a more sustainable business. To actively involve the hotel’s staff members, we highly recommend that the hotel provide them with information and training on the actions they should take to support the hotel’s efforts. Because continuous improvement is an important part of the hotel action plan, the hotel should also invite its staff to provide the hotelier with their feedback and ideas to save more energy! Staff information and training is a highly efficient and effective measure to improve the way energy is used in a hotel. Although it may cost a little time and money to inform and train the hotel staff, the resulting benefits will show up in a very short time because staff behaviour has a direct impact on energy consumption (just like guests’ behaviour). Remember also that behavioural change does not imply reduction in comfort and does not mean setting restrictions: it is about improving the way energy is used, and avoiding unnecessary energy consumption. 1. Inform staff about the environmental impacts of your hotel 2. Inform staff about your environmental (and energy) action plan 3. Provide information and training in relation to their daily activities Figure 6: Suggested information/training strategy EE and RE Applications in the Hotel Sector

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What to inform and train the staff about?43 - Environmental impacts of hotels: Information should first be given on the global environmental impact of the hotel industry, in order to raise the staff’s awareness. The main point here is to recognize and show that many of the services provided by hotels are resource-‐intensive, whether they concern energy, water, raw materials – or even natural landscapes; and that different kinds of pollution result from the hotels’ activities, including greenhouse gas emissions from energy use, solid waste and sewage, as well as chemical pollution resulting from massive use of disinfectant and detergents. This results in a significant ecological footprint. Output Input Hotel Waste, energy, Sewage, water, Air emissions, other + products / supplies transportation Noise, products. + staff transportation… Light. Figure 7: Hotel’s ecological footprint analysis44 - Environmental aspects of the hotel industry: The hotel may tell its staff, for instance, that hotels have been found to have the second highest negative impact on the environment of all commercial building (only exceeded by hospitals). - Environmental impacts of the hotel: Providing figures (or other indicators) on the environmental footprint of the hotel is a very effective way to raise the staff’s awareness. For instance, the hotel can inform them of the quantity of energy and water used annually, the quantity of solid waste produced, and the quantity of carbon emissions resulting from the hotel activities (if the hotel has had a carbon assessment made). Most of these figures will be necessary anyway if the hotel intends to set up an environmental action plan, because making a first assessment is the starting point! - The hotel environmental action plan: The hotelier should state the environmental objective that is has adopted for the hotel (if already defined) and provide information on the actions taken (or that he want to take) to reduce its environmental impact. 43 44

Key EE solutions for SME hotels , Staff training– n°IV ditto

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Energy matters: First, it is important to explain that reduction of the energy consumption of the hotel is part of the hotel’s environmental strategy. The hotelier may say, for instance: o “Huge amounts of energy are used by hotel facilities worldwide, most being derived from fossil fuels, thus generating huge amounts of greenhouse gas. By improving the energy efficiency of our hotel and by avoiding waste of energy, our hotel is taking an important step to reduce its green house gas emissions and to contribute to the preservation of the earth’s natural resources.” The hotel should then present the main lines of its energy action plan, remembering that the hotel can act at three different levels: a. Evaluation: assessing the energy situation of the hotel is essential to understanding the actions the hotel needs to take to improve its energy efficiency. This is usually a first step. b. Organisational and behavioural change: the implementation of an energy action plan requires setting clear objectives and monitoring outcomes. This will affect all aspects of the business. Moreover, for the hotel’s energy policy to be successful, it is essential to involve its staff and guests, so as to induce long-‐ lasting change in behaviours. c. Technical solutions: improving the energy efficiency of a hotel also requires investing in energy efficient solutions. These solutions can be either immediate “quick fix” solutions (like changing light bulbs) or more demanding, long-‐term solutions. Whenever possible, protecting the building from cold and hot weather should be considered (such as with thermal insulation of the building).

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Figure 8: Actions to reduce the hotel’s energy consumption45

All staff 46 Implications of the energy policy in terms of organisation and responsibilities. Good housekeeping practices that should be followed include: o Try to keep doors and windows shut when the heating or air-‐cooling system is on. o Adjust thermostats to a reasonable temperature in winter (around 20-‐22°C) and in summer (around 25-‐26°C). o Turn off all equipment when not in use (such as lights).

45 46 47 48

Tailoring information and training to the most relevant energy issues: The information and training provided should be related to the daily activities of the staff. If the hotel is large, it may need to provide specific information and training for each department. The checklist below shows examples of subjects to be addressed, and is intended for staff working in a hotel to guide them in their routine work in implementing ‘good housekeeping’ practices, which can reduce energy use. It is by no means exhaustive, and hotel management and department or section heads might design their own list adapted to the work activities in their respective sections. Sample checklist for:

Staff at reception (front desk) 47 o Provide relevant information to arriving guests, e.g. on the environmental policy of the hotel and its energy action plan. o Ensure that the main entrance door is closed, to avoid wasteful loss of heat or cool. Cleaning staff 48 Good housekeeping practices for guestrooms include: o Adjust thermostats to a reasonable temperature when leaving the room (the hotel may even stop heating and cooling if the room is unoccupied). o Switch off lights when leaving the room. About its implementation:  Easiness: Easy (*) o Turn televisions off  Best moment: can be done at any time. when leaving the room  Relevant initial situation: the hotel does not have any (avoid sleep mode). information strategy on its environmental policy towards its staff, nor does it informs staff about the o Close windows when actions they can take to help save energy. the heating system or Cost: air-‐conditioning system  Time to be spent on the preparation of the is switched on. information supports, written procedures or manuals, o Inform the and in meetings  If the hotel is big enough: hiring a consulting firm maintenance staff in specialized in staff training can be considered case of water leaks.

ditto ditto ditto ditto

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(optional) Indicative return on investment time: Can be <1 year (depends however on the actions taken)

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49 50 51

o Good housekeeping practices for conference and meeting rooms: o Adjust thermostats to a reasonable temperature (the hotel may even stop heating and cooling if the room is unoccupied). o Switch off lights if the room is unoccupied. Kitchen staff 49 o Turn off or turn down kitchen equipment, in particular gas cookers, when not in use. o Minimise the opening of cold store and freezer doors. o Turn on water tap only when needed and do not let water run continuously when this is not necessary. o Adjust water flow rate and water temperature to suit different kitchens and cleaning. o Turn off ventilation and lights when a kitchen or other area is not in use. o Operate dishwashers at or near their full load to minimise the frequency of operation. o Keep kitchens clean at all times to reduce the amount of water used during the final clean up at the end of the day. o Clean daily and check all kitchen cooking equipments frequently to maintain efficiency. o Follow the operating instructions of kitchen equipment manufacturers. o Kitchen doors adjacent to dining areas should normally be kept closed to prevent excessive kitchen exhaust from moving into the dining areas (in consultation with the Engineering Department staff). Housekeeping staff 50 o Ensure that drapes and/or blinds are closed when a room is not occupied. o In consultation with engineering staff, ensure that temperature and fan speed settings are appropriate for the rooms. o Ensure thermostats are correctly adjusted. o Report any leaking taps, running toilets or other equipment defects. o Ensure all room windows are closed unless opened for special reasons. o Ensure that all power and lighting is off in unoccupied rooms as soon as guests have checked out (unless rooms have automatic access control system). Laundry staff 51 o Turn off lights and ventilation or air conditioning when the laundry is not in use. o Run only full loads in washing machines to minimise the frequency of operation. o Loads should be weighed if relevant. o Ensure that water temperature and amount of water used are in accordance with the washing machine manufacturer’s instructions.

good practices Guide to Energy Conservation for Hotels in Hong Kong ditto ditto

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Maintenance/technical staff 52 o Energy consumption monitoring: investigate the possibility of monitoring the energy consumption of specific equipment items (such as boilers). o Regulation of heating/cooling/ventilation equipment: make sure the current regulation is appropriate, and take necessary corrective actions if not. o Maintenance and servicing of heating/cooling/ventilation equipment: make sure maintenance and servicing are carried out properly and regularly! o Improvement of the building envelope: check if there is any deterioration of the building envelope. If maintenance work is required, evaluate the opportunity to improve the building envelope at the same time (e.g. with prevention of air infiltration or upgrading the thermal insulation). o Improvement of equipment: evaluate opportunities to improve (or even change) technical equipment to gain better energy efficiency and better service. o Install automatic timers, where applicable, to effectively control on/off status of electrical equipment. o Replace damaged or obsolete equipment with high-‐efficiency substitutes, e.g. in the case of motors. o When budgets permit, install electricity meters for monitoring the energy used by major loads. o Carry out preventive maintenance work regularly (in accordance with the hotel preventive maintenance programme) in order to improve operating efficiency and reduce the equipment failure rate. o Conduct energy audits annually, to indicate the energy use profiles and show significant changes in key areas. o Regularly calibrate measurement and control devices, such as thermostats and flow meters, according to the manufacturers’ instructions. o Apply continuous/consistent commissioning (i.e. always appoint the same contractor) to maintain operational requirements and system efficiency. o Post stickers and posters on staff notice boards to draw attention on the significance of energy savings. Chillers o Optimise the operation of multiple chillers. o The number of chillers put into operation for a particular cooling demand should be decided by the combination of chiller and pump power that will give the lowest consumption. o Avoid operating chillers under light load conditions. o Develop time schedules and operation procedures for starting the chillers to reduce maximum demand charges on electricity. o Do not allow the chilled water supply temperature to fall below the design value (typically 6°C or 7°C). o In mild seasons, raise the set point of the chilled water supply temperature in accordance with the decrease of the building load. o Clean condenser and evaporator tubes at least monthly, depending on weather conditions, to optimise the heat transfer rate and reduce power consumption. 52

ditto

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o Control speed of chilled water pumps by variable speed drives, to cater for variable cooling demand and to achieve energy saving. o Clean strainers and filters regularly in order to maintain the seawater flow rate, so that the optimal heat transfer in the condenser can be achieved. o Energy saving systems, such as heat pumps, can be installed for heat recovery and utilisation of waste heat. Air systems Clean air filters located at guest floors, public areas and back of the house monthly, such as by pressurised water jet, to reduce frictional losses and maintain the indoor air quality. o Clean fan coil units, air handling units, and cooling coils at least annually in order to improve cooling efficiency and indoor air quality. o Clean air ducts to remove dust and dirt accumulated inside so as to improve system efficiency and indoor air quality. o Turn off the air conditioning systems in rooms such as the banquet hall, function rooms, and restaurants as soon as the areas are closed. o Check cooled air ducting for air tightness, to avoid air leakage and energy wastage. o Apply duct-‐sealing technology if leakage rate exceeds 5%. o Adjust thermostats to appropriate temperature to suit required conditions, and do not set too low to over cool function rooms, restaurants, offices, etc. o In summer conditions, room temperature between 22-‐ 24°C is acceptable to most people. In cool seasons, 20°C -‐22°C will be appropriate. o During unoccupied periods, the fan coil units in guestrooms may operate with time intervals of fifteen minutes by fan cycling control, as a compromise between energy conservation and the prevention of odour and moisture accumulation. o Adjust outdoor air supply to avoid either under-‐ventilation or over-‐ventilation. Over-‐ventilation is a waste of energy, whilst under-‐ventilation may compromise the comfort and health of the occupants. o Outdoor air supply control, such as the demand control method using CO2 sensors, can be adopted for effective ventilation and energy saving, especially in a large function room or similar space. o Economiser cycles can be adopted, where applicable, to utilise the cool outdoor air and reduce energy consumption for cooling. Electricity systems o Switch off lighting when not required or when the daylight provides adequate illumination. o Clean lighting fixtures regularly to maintain efficiency of lighting. o Lighting zone control should be adopted, where applicable, to optimise electricity use. o High efficiency fluorescent tubes (e.g. T5) and electronic ballasts can be installed, where applicable, to improve efficacy. o Turn off electrical equipment when not in use, or not required for any prolonged period.

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o Consider installing infrared sensor controls to switch off power when the space is unoccupied. o Choose electrical appliances with high-‐energy efficiency ratings. o Adopt an efficient load-‐management system to reduce peak demand. o Install automatic regulator and capacitor banks for power factor improvement. Boilers o Check boilers daily for leakage of diesel fuel oil, and for emission of carbon monoxide and smoke due to incomplete combustion. o Properly line steam pipes with insulation to reduce heat loss to environment, and also to maintain the system efficiency. o Repair steam pipes as soon as possible in the event of steam leakage. o Ensure the chemical water treatment system is checked monthly by the appointed contractor to prevent rusting and scaling of the internal walls and tubes of the boiler, to maintain the efficiency of heat transfer. o Maintain an optimum air-‐fuel ratio, and avoid excessive flue temperature. o The air-‐fuel ratio shall be adjusted at each change of season o An additional boiler should be only turned on when the capacity of operating boiler(s) is insufficient. Turn off the boilers overnight. o Return condensate from the laundry and kitchen equipment may be utilised, e.g. to preheat feed water. Calorifiers o Properly line calorifiers and hot water pipes with insulation, to reduce heat loss to the environment, and also to optimise the energy use. o Check calorifiers and hot water pipes quarterly and repair as soon as possible in the event of water leakage. o Maintain the hot water supply temperature in the range of 50 to 60°C for guestrooms, public spaces and other general washing purposes. o Excessive water temperature will result in waste of energy. Laundry and Kitchen o Ensure the gas equipment in kitchens is checked at least quarterly by a competent contractor to avoid leakage of gas, and emission of carbon monoxide and smoke to the environment, due to incomplete combustion. o Ensure steam pipes of the steam ovens, dryers, washing machines, etc. are properly lagged with insulation to reduce heat loss to the environment, and also to maintain the efficiency of equipment. o Ensure all steam traps operate properly and all traps are leak-‐free. o Ensure all the doors of refrigerator close properly and gaskets are in good condition. o Consider use of variable-‐speed extraction systems to reduce the energy waste by adjusting the fan speed to the rate of extraction required. Swimming Pool o Ensure sand inside the backwash chamber is replaced annually to maintain water filtration efficiency.

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o Ensure a pool cover is used to reduce evaporation in summer and heat loss in winter. Plumbing and Drainage Systems o Electronic frequency inverter-‐driven motors may be utilised to cater for variable water demand in direct up-‐feed water systems. o The possible use of recycled wastewater, condensate water and rainwater should be investigated for heat rejection in small refrigerating plants. How to inform and train staff? Which communication mediums should be used? - The main point is to maintain active communication (both written and oral) with the staff. - Training sessions: Adequate training should be provided to all staff at least once per year. If the hotel is large, there may be one or two annual meetings with all staff to present and discuss general information related to the environmental action plan of the hotel, plus more specialized and technical training sessions that would be organized separately for each department. If the hotel is small, all the staff may be gathered together for presentation of both general and technical information. - Written procedures and manuals: Depending on the size of the hotel, specific procedures and manuals may need to be written for each service. For example, for maintenance staff it is useful to have an easy-‐to-‐follow, regularly updated manual detailing the operating methods, instructions and standard control settings for HVAC services equipment. - Protocol for new staff: Because staff turnover is sometimes quite high in hotels, it is important to make sure that all new staff receives training within four weeks of starting their employment.

6.02 I NFORM ATION TO GUESTS For the hotel’s energy efficiency policy to be successful, it is essential to involve the guests. That is why we strongly recommend that the hotel let them know it cares for the environment and invite them to take simple actions to support the hotel’s efforts. Most of the hotel’s guests will be happy to know that the hotel is committed to reducing its negative environmental impacts, and they will be keen to learn about the simple actions they can adopt to limit waste of energy and improve the environmental friendliness of their stay.

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1. Let your guests know that you care for the environment!

2. Inform your guests that energy conservation actions greatly contribute to limit the environmental impact of your activity and of their stay.

3. Tell your guests about the simple actions they can take to support your efforts!

Figure 9: Suggested communication strategy

What should the hotel say to guests about its environmental policy? State the environmental objectives that the hotel has set for its facilities and the hotel should provide information on the actions it is taking to reduce its environmental impact. It is important to explain that reduction of the energy consumption of the hotel is part of the hotel’s environmental strategy. The hotel may say, for instance: - “Substantial amounts of energy are used by hotel facilities worldwide, most being derived from fossil fuels, thus generating huge amounts of greenhouse gas. By improving the energy efficiency of our hotel and by avoiding waste of energy, our hotel is taking important steps toward reducing its green house gas emissions and contributing to the preservation of the earth’s natural resources.” - If the energy savings obtained are re-‐invested in new environmental measures or are used to improve the quality of service delivered to the guests (e.g. improve food quality), it is recommended that the hotel let their guests know! Which simple actions can the hotel advice its guests to take in order to reduce energy consumption?

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The table below provides examples of the advice the hotel can provide to their guests. 8 simple actions to reduce the energy consumption of a hotel while maintaining its level of comfort! Help us save electricity:  By avoiding waste of electricity, you will contribute to the preservation of our natural resources and landscapes. That is why we invite you to turn off electrical appliances when not in use. In particular: 1. Please stop the air-‐conditioning when you leave the room. 2. Please switch off lights when leaving the room. 3. Please avoid sleep mode for televisions (turn them off instead). Help us reduce energy use for space heating and cooling: 

Did you know that almost half of the energy consumed in hotels is used for space heating and cooling, and that a significant portion of this is usually wasted?

4. Please close windows when the heating system or air-‐ conditioning system is switched on. 5. Please keep the room temperature reasonable in winter (around 20-‐22°C) and in summer (around 25-‐26°C).

Help us save water: 

Water is a precious resource for humanity. By using water sparingly, you will contribute to its preservation and you will also reduce the substantial amount of energy used to heat the water!

6. If possible, please take a shower instead of a bath. 7. Please inform the cleaning staff if you are willing to keep your towels more than one day. 8. Please inform hotel staff in case of water leaks.

Thank you for supporting our environmental objectives. Please let the hotel manager know if you have any suggestions to reduce energy consumption and improve the environmental friendliness of our hotel! EE and RE Applications in the Hotel Sector

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Which information medium to use (oral communication, leaflets, brochures, video…)? - The main point is to maintain active communication (written, oral or visual). - If the hotel wants to inform their guests about its environmental policy and about the actions they can take to reduce the energy consumption, it is recommended that they provide them with a written document (e.g. a brief notice, leaflet or brochure). The hotel may want to hand out this document at the reception desk or leave it in the guestrooms. - In addition, to ensure maximum impact of the hotel communication, it is important that the staff at the reception desk inform arriving guests that the hotel has an environmental policy. - Finally, the hotel may also consider mentioning its energy policy on its Internet website. About its implementation:  Easiness: Easy (*)  Best moment: can be done at any time.  Relevant initial situation: the hotel does not have any strategy in its environmental policy for providing environmental information to its guests, nor does it inform his guests about the simple actions they can take to help save energy. Cost:  Time to be spent on the preparation of the information documents and money to be spent on editing (it may cost around 1,000 Euros for production of 150 brochures of 15 pages, and much less if you make your own editing and printing). Indicative return on investment time: < 1 year

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ANNEX VII. FINANCING SOURCES FO R EE AND RE PROJECT FINANCING: 7.01 E QUITY 53 Equity can take the form of direct investment of one’s own resources and capital, or as third party capital inputs, e.g. in the form of risk capital by venture capital funds or simply wealthy families. Using the hotelier resources as equity is the simplest method of EE and RE project financing and makes sense if the hotel has sufficient cash reserves and a strong balance sheet. With this form of equity, all cost savings realized from the upgrade are immediately available to the hotel, and the hotel is able to realize the tax benefit of the equipment’s depreciation. However, the hotel incurs an opportunity cost in that it no longer has that capital available for other investments. This financing method is good for relatively inexpensive and simple efficiency measures that are likely to pay for themselves in about a year. The contractual arrangement is typically structured as a fixed cost contract or possibly a per-‐unit cost guarantee. Debt providers expect all projects to be at least partly financed through equity. Lenders demand that borrowers take a direct equity stake themselves (to ensure their commitment to the success of the project). In practice, lenders normally look for a minimum of around 20% of the project cost to come in the form of the borrower’s own equity.54 RET with higher risks are expected to have a correspondingly higher equity ratio. However, most project developers have a limited amount of own funds to make this essential contribution to the financial package. This creates the need for the participation of additional equity investors.

7.02 L OAN 55 A loan may be obtained to finance the project. In financing an EE or RE project, a bank may ask for a personal guarantee from the hotel owner. The lender’s goal is for the client to make minimum payments dependably, so lenders may require up to a 40% down payment on loans for energy projects. Lenders consider EE and RE projects to be high risk, which results in less leverage, higher interest rates, and a shorter debt term.

53 public finance mechanisms to catalyze sustainable energy sector growth. SEFI UNEP. www.energybase.org/.../media/.../SEFI_Public_Finance_Report.pdf 54 Financing Renewable Energy, Instruments, Strategies, Practices Approaches. December 2005 KFW. 55 public finance mechanisms to catalyze sustainable energy sector growth. SEFI UNEP. www.energybase.org/.../media/.../SEFI_Public_Finance_Report.pdf

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7.03 P ERFORM ANCE C ONTRACTING AND ESCO S 56 This option is attractive to the customer because it requires no up-‐front cost, since the project is paid for out of the energy savings from the efficiency project itself. An Energy Service Company (ESCO) provides the financing and assumes the performance risks associated with the project. Until the project has been fully paid for, the ESCO owns the upgraded equipment. That means that the equipment asset and debt do not appear on the customer’s balance sheet. Performance contracting relies on the financial strength of the building owner, and the cost savings potential of the project. Performance contracting is an operating budget issue more than a capital budget issue despite the upgraded equipment provided through the project. Capital budgeting may typically require board approval, and may be decided upon only periodically. On the other hand, the utility payments are already in the operating budget, so any savings through the implementation of efficiency measures may free funds for discretionary spending. Under a performance contract, after the energy efficiency upgrade, the funds that were used to pay the energy bill cover the new energy bill and the payment to the ESCO, and generate positive cash flow for the customer. Under a “shared savings” performance contract, the customer and the ESCO divide the cost savings according to the contract documents. A “paid from savings” performance contract sets the customers share of the savings at a fixed level, while the ESCO payments fluctuate according to actual savings. Historically, when pursuing an EE or RE project, large public and private clients would hire an engineering company to design the installation. The client would then issue requests for proposals (RFPs) to contractors. The engineering company assists the client in selecting the best or lowest cost contractor. This historical procurement process created problems for the client when trying to procure energy services, leading to the emergence of the ESCO. EE and RE project clients are not procuring an equipment installation, but are instead looking for actual results in the form of energy savings in addition to improved system performance. Under the old procurement process, the design engineer could not be held responsible for the installation by a different contractor, nor could the installation contractor be held responsible for the design. Existing conditions, for example, may be substantially different from those established in the design, profoundly impacting energy savings. Under the ESCO model, the ESCO assumes the role of a design/builder, taking responsibility for the whole process. ESCOs meet client needs to reduce costs, improve energy efficiency, manage risks, consolidate services, and enhance competitive advantage. To meet these needs ESCOs offer integrated energy services including analysis, energy and equipment, installation, monitoring, and guarantees. Contracting arrangements with an ESCO usually offer flexible terms, financing, risk management, quality assurance, verifiable performance, and follow-‐on service. Specific energy efficiency options vary from project to project in scale, ownership, location, technology, load factor, run-‐time, control type, services, and financing provided.

Best Practices Guide: Economic and Financial Evaluation of Energy Efficiency Projects and Programs Prepared for: Energy and Environment Training Program Office of Energy, Environment and Technology Global Bureau, Center for the Environment United States Agency for International Development.

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Fundamentally, an ESCO makes money in a fashion similar to a general contractor. ESCOs typically mark up the cost of materials to cover overhead and profit. ESCOs will attempt to make a small margin on financing the project consistent with the credit and performance risk involved. However, an ESCO may or may not make money from financing, particularly if it is offered through a third party. Additional costs are associated with monitoring the project that typically are not embedded in the interest rate cost or the installed cost. These are usually included as a separate line item or a fee for a savings guarantee.

7.04 S AVINGS G UARANTEE A savings guarantee can be entered into with the ESCO separate from an installation agreement. This is recommended if the contractual arrangement is not a performance contract. Performance contracts already include an implicit savings guarantee. A savings guarantee reduces the customer’s risk by guaranteeing that energy cost savings will meet or exceed an established minimum value. The guarantee acts like an insurance policy where the customer pays a premium that compensates the guarantor for the performance risk and monitoring costs.

7.05 O PERATING L EASE Under an operating lease, the lessor owns the equipment and claims any tax benefits associated with the depreciation of the equipment. At the end of the contract term the customer can purchase the equipment at fair market value (or at a predetermined amount), renegotiate the lease, or have the equipment removed. An operating lease is also known as an “off balance sheet” lease. Firms often choose to lease long-‐term assets rather than buy them for a variety of reasons -‐ the tax benefits are greater to the lessor than the lessees, leases offer more flexibility in terms of adjusting to changes in technology and capacity needs. Lease payments create the same kind of obligation that interest payments on debt create, and have to be viewed in a similar way. In an operating lease, the lessor (or owner) transfers only the right to use the property to the lessee. At the end of the lease period, the lessee returns the property to the lessor. Since the lessee does not assume the risk of ownership, the lease expense is treated as an operating expense in the income statement and the lease does not affect the balance sheet.

ANNEX VIII. INCENTIVES FOR EE/RE APPLICATIONS 8.01 F EED IN T ARIFF 57 The tariff levels vary depending on the country, technology, size and location of the systems. The information below provides an overview of different EU feed-‐in tariffs. Please note that 57

http://www.sourcerenewable.com/en/pages/grants-funding.aspx

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some of the details of the feed-‐in tariffs (e.g. regarding eligibility, bonuses, degression, etc.) are more detailed than they appear hear. The information is merely intended to give an overview and does not reflect all details of the statutory requirements. In Germany58 First introduced in 2000, the Erneuerbare-‐Energien-‐Gesetz (EEG) law is reviewed on a regular basis and the 2010 version is currently in force. Its predecessor was the 1991 "Stromeinspeisegesetz". Since 2009, there are additional tariffs for electricity immediately consumed rather than supplied to the grid with increasing returns if more than 30% of overall production is consumed on site. This is to motivate demand-‐side management and help develop solutions to the intermittency of solar power. The German Bundestag (Parliament), on 8 July 2010, finally decided to reduce the feed-‐in tariffs for solar installations that begin operating for the first time after 30 June 2010 and after 30 September 2010. The cut starting 1 July 2010 shall apply retroactively. Table 8. German feed in tariffs for some RE technologies59: Note that the amounts are in cents €/kWh Hydropower Facilities of up to 5 MW – new Up to 500 kW 12.67 Up to 2 MW 8.65 Up to 5 MW 7.65 Biomass Up to 150 kW 11.55 Up to 500 kW 9.09 Bonus for the use of renewable raw materials (Nawaro Bonus) Share of capacity up to 150 kW Biomass excluding biogas + 5.94 Biogas + 6.93 Combined heat and power (CHP) bonus (only for the share of feed-‐in deemed to be CHP electricity) Up to 20 MW + 2.97 Solar radiation Roof-‐mounted facilities Up to 30 kW 39.14 Up to 100 kW 37.23 Up to 1 MW 35.23 Over 1 MW 29.37 Electricity produced is used within building/facility Up to 30 kW 22.76

58 59

http://www.germanenergyblog.de/?page_id=965 www.allianceforrenewableenergy.org/.../hawaii_feedin_tariff_case_studies.doc

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Spain60 The current Spanish feed-‐in legislation is Royal Decree 1578/2008 (Real Decreto 1578/2008) for photovoltaic installations and Royal Decree 661/2007 for other renewable technologies that supply electricity to the public grid. Originally under the 661/2007, photovoltaic feed-‐in tariffs have been recently (Sept 2008) developed under a separate specific legal framework due to the rapid growth experienced by this technology since release of the original scheme. The current photovoltaic decree 1578/2008 categorizes installations into two main groups with differentiated tariffs: 1. Building-‐integrated installations: tariff of 34c€/kWh for systems up to 20 kW of nominal power, and of 31c€/kWh for systems above 20 kW with a limit of nominal power of 2MW. 2. Non-‐integrated installations: 32c€/kWh for systems up to 10MW of nominal power. For other technologies, decree 661/2007 sets the following tariffs: Table 9. Feed in Tariffs in Spain Energy Source Cogeneration systems

Feed-‐in Tariff Maximum FiT of 13.29c€/kWh during lifetime of system. 26.94 c€/kWh for the first 25 years Up to 7.32 c€/kWh for the first 20 years 6.89 c€/kWh for the first 20 years 7.8 c€/kWh for the first 25 years Up to 13.06 c€/kWh for the first 15 years Up to 12.57 c€/kWh for the first 15 years

Solar thermoelectric Wind systems Geothermal, wave, tidal and sea-‐thermal Hydroelectric Biomass and biogas Waste combustion Czech Republic The Czech Republic introduced a feed-‐in tariff in 2005 by act of law no. 180/2005 for a wide range of renewable sources.61 The tariff is guaranteed for 15 to 30 years (depending on technology). Supported technologies are small hydropower (up to 10 MW), biomass, biogas, wind and photovoltaics. As of 2010 the tariff goes from 12.15 CZK/KWh to 12.25 CZK/kWh for small photovoltaic.62 60 61 62

http://lists.gaiahost.coop/pipermail/sage/20110108/008329.html http://www.renewableenergyworld.com/rea/news/article/2005/05/czech-republic-passes-feed-in-tariff-law-30844 http://www.eru.cz/user_data/files/cenova%20rozhodnuti/CR%20elektro/OZ/ER%20CR%205_2009_slunce.pdf

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8.02 E CO -‐ LABELS AND CERTIFICA TION SCHEM ES FOR HOT ELS Since 1993, the European Network for Sustainable Tourism Development (ECOTRANS) with its 20 partners in 12 European countries has been doing systematic research and monitoring of efforts to set sustainable standards within Europe's tourism industry. Its database, ECO-‐TIP,63 contains more than 100 eco-‐labels and awards and over 300 examples of "good practices" by tourism businesses. The diversity of tourism in Europe, however, presents enormous challenges for certification initiatives. Analysis of the criteria of the leading certificates in Europe shows that many recommend or request businesses to regularly monitor energy, water and waste consumption per overnight stay. This requirement is part of the VISIT (Voluntary Initiative for Sustainability in Tourism) initiative, which has been designed to demonstrate how tourism eco-‐ labels in Europe can collaborate and move the tourism market towards sustainability. VISIT In 2001/2002, a partnership with 10 regional, national and international eco-‐labelling schemes was established within the VISIT initiative.64 VISIT stands for “Voluntary Initiative for Sustainability in Tourism.” Together with Ecotrans as independent co-‐coordinator, these labels based their work on the internationally recognized ISO 14024 standard for “Type I Eco-‐labels”. The VISIT eco-‐labels (for hotels) have intensively collaborated with each other and it was found that there is considerable overlap of criteria. Nine out of eleven VISIT eco-‐labels already require the same or similar criteria for 23 different environmental issues.65 This has allowed the VISIT eco-‐labels and the EU Flower to agree on joint targets for the next revision of their criteria, with the aim to have a set of 20 mandatory criteria implemented at more than 1000 certified hotels and camping sites in Europe. Some of the core criteria for the VISIT eco-‐labels are: 1. Political implementation of sustainability concepts 2. Environmental Indicators a. Tourism transport (access to destination and return travel, local mobility) b. Carrying capacity -‐ land use, bio-‐diversity, tourism activities c. Use of energy d. Use of water e. Solid waste management 3. Social and cultural performance indicators 4. Economic performance indicators For more information about the VISIT eco-‐labels criteria, go to: www.visit21.net/ 63 64 65

http://www.ecotrans.org/visit/brochure/fr/060.htm www.visit21.net/ These also form part of the EU Flower.

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European Eco-‐label If the hotelier is planning to set up an environmental policy and action plan for the hotel, it may be worth starting by assessing whether the hotel meets the standards of the EU Eco-‐label, and what actions the hotel would need to take to qualify for the EU Eco-‐label. The EU Eco-‐label is an official certification from the European Union that has gained European-‐ wide recognition and can be effectively integrated into the hotel marketing strategy. Even if the hotel is not planning to obtain the EU Eco-‐label, reading about it may give the hotel ideas of the actions the hotel can take to improve the environmental performance of its hotel, especially regarding energy use and efficiency. General purpose of the EU Eco-‐label - The EU eco-‐label for tourist accommodation has been created to identify and highlight tourism companies that respect the environment. The EU-‐flower logo signals high environmental performance to customers. - Because a growing number of guests now demand environmentally friendly accommodation, the EU Eco-‐label can be a strong marketing asset for any hotel. What are the requirements to qualify for the EU Eco-‐label? - The criteria of the EU Eco-‐label relate to the following environmental domains: o Energy consumption o Water consumption o Waste production o Use of chemical products o Environmental management - Some criteria are mandatory while others are optional. However, the hotel must satisfy a sufficient number of the optional criteria in order to qualify. For more information about the EU Eco-‐label criteria, go to www.ecolabel-‐tourism.eu. - As a first step, the hotelier can evaluate how close its hotel is to qualifying for the EU Eco-‐label by considering all mandatory criteria and assessing whether the hotel meets or exceeds them. This will give the hotelier an initial idea of the efforts the hotel may need to make in order to qualify for the EU Eco-‐label. The next step would be to review the optional criteria in the same manner. o Regarding energy-‐related criteria, the table below shows which criteria (mandatory and optional) deal with EE and RE in the hotel. o The hotelier can find more detailed information about the requirements for each criterion from the www.traintoecolabel.org website. (Please note that this website is based on the old criteria for the EU-‐Eco-‐label that were valid until October 31st, 2009. It had not yet been updated as of August 2010).

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EE and RE components of the EU Eco-‐label (Commission Decision of 9 July 2009) The table below lists all the criteria that deal directly or indirectly with energy. The table specifies whether the criteria are mandatory or optional, and whether they deal with the type of energy used, efficiency of equipment, equipment regulation, building characteristics, or management measures.

Criteria # 1 2 30

31 34 35 36 48 3 4 7 8 9 10 32 33 37 38 40 41 43

45 46 47 49

5 6 39 42 23

24 25 26 27 29 89

Mandatory / Optional

Specific aspect addressed by the criteria

Type of energy used  Use of electricity from renewable sources (at least 50%)  No use of coal and heavy oils  Generation of electricity through renewable energy sources (at least 20% of annual consumption) O  Energy from renewable energy sources O  District Heating O  Combined heat and power O  Use of heat pump O  Swimming pool heating with renewable energy sources Equipments efficiency / Equipments regulation M  Efficiency and heat generation M  Air conditioning (class A) M  Switching off heating or air conditioning M  Switching off lights M  Energy efficient light bulbs M  Outside heating appliances O  Boiler energy efficiency O  Boiler NOx emissions O  Heat recovery O  Thermoregulation O  Air conditioning (15% more efficient than class A) O  Automatic switch-‐off air conditioning and heating systems O  Energy efficient refrigerators, ovens, dishwashers, washing machines, dryers/tumblers and office equipment O  Refrigerator positioning O  Automatic switching off lights in guest rooms O  Sauna timer control O  Automatic switching off outside lights Building characteristics M  Energy efficiency of buildings M  Window insulation O  Energy performance audits for buildings O  Bioclimatic architecture Management measures that have an impact on energy use M  Maintenance and servicing of boilers and air-‐ conditioning systems M  Policy setting and environmental program M  Staff training M  Information to guests M  Energy and water consumption data M  Information appearing on the eco-‐label O  Energy and water meters M M O

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How to apply for the EU Eco-‐label? - If the hotelier thinks that its hotel qualifies for the EU Eco-‐label, it is highly recommended to apply for it. The first step is to get in contact with the respective “competent body”, which is the national organisation responsible for managing the application process for the EU Eco-‐label in their country. It will give the hotel information on the application procedure. - The hotel will then has to provide a detailed dossier showing how technical criteria have been met. The “competent body” is responsible for the verification of compliance prior to awarding the Eco-‐label and may seek to verify submitted data. - If the hotel application is in conformity with the requirements and the application fee is paid, the hotel will be awarded with the Eco-‐label. Other certification schemes Tourism certification has been hurt by a lack of credibility and market confusion, given that there is not yet an internationally accepted framework against which to measure certification programmes. Europe has far more ‘green’ certification schemes than any other region of the world and accounts for 78% of world tourist arrivals. The table below compares different certification schemes, of which 4 are specific to the hotel sector and one is for buildings in general; 4 are focused in Europe and one is international. Table 10. Summary Table of Selected Certification Schemes66

Region

Hotels Specific Operational Data Only Mandatory Energy Management System Back Up Documentation Required Independent On-‐Site Audit Award Levels

Green Hospitality Award

EC3 Green Globe

Nordic Swan

EU Flower

LEED-‐EB (Operations & Maintenance) International, mostly US

Ireland Only

Worldwide

Europe15 + Norway, Iceland, Liechtenstein

Yes

Yes Yes

Scandinavia Finland, Sweden, Norway, Iceland, Denmark Yes Yes

Yes Yes

X Yes

Yes

Bronze Silver Gold

One Level

Certified Silver Gold

An Analysis Of The Performance of Certification Schemes In The Hotel Sector In Terms Of CO2 Emissions Reduction, Aoífe Anne-Marie Houlihan Wiberg. October 2009. Page 110

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Does Increased Award Level Indicate Increased Environmental Performance? Categories

Energy Mandatory Category Rigorous Energy Accounting2 Are key CO2 emissions reduction criteria included in mandatory section? Are key CO2 emissions reduction criteria weighted the same as criteria that have no direct impact? Number of Categories required for certification Obligatory Requirements & Optional Points Score in each category? Use of Benchmarks? Benchmarks Published in Public Domain Is certification Awarded on the basis of passing Benchmarks Only? CO2 Benchmark Reporting CO2 emissions Mandatory Energy Benchmark Key Energy Performance Indicator Energy Benchmark Energy Benchmark vary with Geographical Location One day guest equivalent (staying at hotel for at least 4 hours) 1 Conference Guest equivalent (Guests staying 1 day & part day)

Platinum YES

One Level

1) Energy Consumption 2)Water Consumption 3)Waste Consumption 4) Waste Management

1) Energy 2) Water 3) Chemicals 4) Management 5) Waste 6) Other

1) Sustainable Sites 2) Water Efficiency 3) Energy & Atmosphere 4) Materials & Resources 5) Indoor Air Quality 6) Innovations in Operations

YES

1) Sustainability Policy 2) Energy Consumption 3) Water Consumption/Saving 4) Waste sent landfill/Recycling 5) Community 6) Paper Products 7) Cleaning Products 8) Pesticide Products X

YES

*** X

**** N/A

*** X

* YES

**** YES

YES

N/A

YES

N/A

YES

N/A

External Rating System X

X X

X Optional

N/A X

X Mandatory

YES

N/A

YES

MJ / guest night

KWh/m or kWh/guest night

No calculation

EPA Rating 1-‐100 (kBtU/ft )

1) Environ. Management System 2) Water Management 3) Waste Management 4) Energy Management

KWh / m 2

N/A

YES

N/A

YES

Calculates per square metre

0.3 guest nights

0.5 guest night

No calculation

Calculates per square foot

Calculates per square metre

1.5 guest night

No calculation

Calculates per square foot

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1 Restaurant guest equivalent (Hotel Occupancy >60% Restaurant Turnover >45% total) Accounting of resident staff in guest night calculation Additional optional points scored for % renewable resources Additional optional points scored for insulation of existing building Additional optional points scored for use of energy efficient light bulbs Boiler Efficiency >90% Energy Consumption Sub-‐Metering Extra Optional Points (ENERGY RELATED) for Hotels with Laundry, leisure centre, conference Are extra points explicitly awarded for passive or bioclimatic architectural design principles? Additional Features

Calculates per square metre

0.25 guest night

No calculation

Calculates per square foot

Calculates per square metre

No calculation

Calculates per square foot

Platinum

YES

Gold & Platinum

YES

Gold & Platinum

YES

Gold & Platinum

YES

2007: Separate Spa Performance Benchmarks (MJ per treatment hour)

Consumption for banqueting, catering and spa facilities may be deducted from total.

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ANNEX IX. SHORT ENERGY AUDIT F ORM 67 This form can be useful for hotelier to start identifying energy savings potential, and raise awareness on the considerations of implementing EE and RE measures. FORM: Hotel name: Address: Date: Main characteristics This short audit form is used to identify the hotel characteristics and electrical, heating, cooling and domestic hot water systems installed. Known future changes in installations and/or energy use etc can be noted separately. Such factors as the size of heating, cooling and electrical loads, the temperatures at which heat and cooling are required, site for locating the CHCP etc can be examined and determined on the basis of this form. The identification of which load to use, and an accurate determination of this load and its variation, are the most important steps in the design of CHCP installation. Occupation Occupation rate, % Size Number of rooms:_____________ Average room size, m2:____________ Total covered area, m2:_____________________________ Public general service and service area, m2: ________________________

CHOSE : Energy Savings by Combined Heat Cooling and Power Plants (CHCP) in the Hotel Sector, ÅF-Energikonsult AB, Energi och Miljö Box 8133, Fleminggatan 7 S-104 20 Stockholm, SWEDEN. 2001

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A. Special service Climate cooling: Swimming pool: Restaurant:

Total size of climatised areas:

__________

Area, m2:______

Period of use: __________

Places:_________

Use for non guests: __________

Average meals/month:

__________

Laundry: Yes No Energy sources, primary energy bought (used) per year, MWh Energy Energy per year, MWh Electricity District heating Light oil Natural gas Other: B. Use of water, per year Use of water, total m3: _______________ Use of, domestic hot water, m3 _______________ Climate according to geographical location, just for internal use Heating degree-‐days: _____________________________________________ Outside average _____________________________________________ C. Energy Data C1. Electricity The following information can usually be found on your electricity bills. Installed Electrical Power, kW: ______________ Electrical Demand (Max demand), kW: ______________

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Electricity consumption Month

Demand KW

Consumption KWh

Jan. Feb Mar Apr. May Jun. Jul. Aug. Sep. Oct Nov. Dec. Total Installed systems within the hotel, electrical power by end-‐use/equipment (HVAC; Swimming pool heater; Domestic Hot Water, Climate cooling, refrigerator etc) Unit Heating-‐, cooling-‐, Power, Installed Used for: Meters no water and electrical kWe year installed system Yes/No C2. Thermal energy consumption for the year Installed thermal power (total), kW Installed power by end-‐use/equipment, kW: (HVAC; Swimming pool heater; Domestic Hot Water, etc)

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1st Thermal energy source Energy source: _______ Unit: _________ Produced energy used for: ____________________________________ Month consumption, MWh: Jan. Feb. Mar. Apr. May. Jul. Aug. Sep. Oct. Nov. Total consumption, MWh: _____________ 2nd Thermal energy source Energy source: _______ Unit: _________ Produced energy used for: ____________________________________ Month consumption, MWh: Jan. Feb. Mar. Apr. May. Jul. Aug. Sep. Oct. Nov. Total consumption, MWh: _________ 3rd Thermal energy source Energy source: _______ Unit: _________ Produced energy used for: ____________________________________ Month consumption, MWh: Jan. Feb. Mar. Apr. May. Jul. Aug. Sep. Oct. Nov. Total consumption, MWh: _________ EE and RE Applications in the Hotel Sector

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Principal schemes and manuals to be enclosed for the individual systems: Schemes of installation, regulation equipment and a flow scheme. A copy of the manual if possible.

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ANNEX X. HOTELS 68

CHECKLIST FOR ENERGY SAVING MEASURES IN

This form can be used by the trainer to raise awareness on the hoteliers on the energy savings potential. Energy Management Is there a good management of the energy consumption? Yes (operating hours, split areas etc) Heating/Hot Water Is the in-‐door temperature controlled? Yes Is the insulation in good condition? Yes Is the domestic water temperature controlled? Yes Lightning Is the use of electric lightning optimised? Yes (use of daylight, motion detectors, room-‐key automatic switch etc) Ventilation Is the ventilation system optimised? Yes Air Conditioning Is the AC system optimised and co-‐ordinated with the heating? Yes Are other energy consumers in the hotel optimised? Catering Yes Laundry Yes Pool Yes Staff knowledge and Behaviour Is there defined responsibilities and instruction for energy efficient behaviour? Yes Is the staff educated in energy savings and aware about relevant instructions? Yes Comments:

Partly

CHOSE : Energy Savings by Combined Heat Cooling and Power Plants (CHCP) in the Hotel Sector, ÅF-Energikonsult AB, Energi och Miljö Box 8133, Fleminggatan 7 S-104 20 Stockholm, SWEDEN. 2001

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ANNEX XI. CREATING AN ENERGY S ERVICE AGREEMENT In order to work with an ESCO it is needed an Energy Service Agreement (ESA). Several ingredients are critical to these kinds of agreements. The primary elements that should be included or considered for inclusion in an ESA are listed and briefly explained below. In general, the contract will be defined by the financing arrangement that has been chosen by the Hotel owner; however there are numerous contractual terms that should be included in any ESA69. The next elements are just some suggestions that the hotelier can include in this kind of agreements, and the trainer can use it to provide guidance. Financing Terms 1. Basic Financing Terms to Include a. Contract amount b. Term of the contract c. Indicate who is responsible for any sales tax d. Contact information for invoicing purposes e. Late payment treatment f. How to resolve invoicing disputes g. Indicate how often the client needs to provide updated financial information and what is required 2. Payments if a Cash Contract a. Mobilisation fee (down payment), if applicable b. Progress payments based on percentage of completion c. If retainage is called for, include the percentage to be retained from each invoice and what triggers the release of that money d. 100% of the contract sum must be paid within 30 days of the Certificate of Acceptance (COA) 3. Payment terms if a Performance Contract a. First payment is usually due within 30 days of the COA b. Payments are based on estimated savings until actual savings are verified under the first energy savings report c. Savings numbers should be reconciled periodically and any discrepancies should be invoiced or split accordingly d. Indicate the frequency and number of payments e. Establish the threshold level of savings 4. Payment Terms if a Lease a. If it’s a 3rd party lease, then there are usually several related contract documents:  Lease documents from the financier  Installation contract with the ESCO  Savings guarantee (if applicable) b. Early buyout amounts, termination fees, and contract continuation clauses should be included for each contract 69

Economic and Financial Evaluation of Energy Efficiency Projects and Programs Prepared for: Energy and Environment Training Program Office of Energy, Environment and Technology Global Bureau, Center for the Environment United States Agency for International Development

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c. d. e. f. g. h.

Identify financed amount Attach an amortisation schedule Residual value of the equipment Indicate senior vs. subordinated debt Indicate whether secured or unsecured debt and what the security is Upon execution of the COA the financier begins invoicing the client, and the ESCO gets paid by the financier 5. If Utility Rebate is Involved a. Utility timelines affect the project’s eligibility and schedule b. Address how the rebate amount affects the contract sum c. Address what happens if the actual rebate amount differs from what has been estimated 6. Contingency a. Is a portion of the budget in contingency? b. What happens if the contingency is not used? Construction Terms 1. Scope of Work a. Detailed description of measures and any associated work (repairs, painting, disposal of old equipment, etc.) b. Equipment quantities c. Client approval procedures throughout the process d. Commissioning procedures e. Training 2. Installation and procurement schedule 3. Handling of change orders 4. Description of the operations and maintenance plan that will be provided with the COA 5. Standards of service 6. Whether subcontracting is permitted and what discretion the client has in disallowing subcontractors or individual employees 7. All applicable provisions in the ESA should be required to be included in any subcontracts 8. Details regarding access to the facility 9. Certificate of Acceptance a. Used for sign-‐off by the client at completion of the project installation indicating that everything is in working order b. Date of project acceptance triggers the monitoring and verification to begin, thereby beginning the payments to the ESCO under a performance contract

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Savings Performance 1. Monitoring and verification methodology 2. Formula for calculating savings 3. Baseline calculations and adjustments 4. Client needs to sign off on baseline usage 5. Client must provide ESCO with energy use data in a timely manner throughout the term of the contract 6. Client must notify the ESCO of material changes to the equipment or operations 7. ESCO should be allowed a certain period of time to remedy any technical problems 8. Address who will bear the risk of change in energy prices 9. Reporting conventions and frequency 10. Responsibilities for operations and maintenance of M&V equipment Warranties 1. ESCO may provide a warranty on labour and materials for a set period of time 2. ESCO should obtain warranties for the same period of time from the subcontractors and equipment manufacturers 3. Equipment warranties should be transferred to the customer upon transferring title to the equipment Other Terms 1. The customer should verify that it owns the premises and intends to use the premises in a manner similar to its current operation for the term of the agreement 2. If the customer is the owner, but there is a different tenant, then the ESCo may want to obtain a certificate of tenant authorisation 3. If the customer is a tenant, then a landlord-‐ or mortgage-‐waiver should be obtained 4. How the project is being financed will dictate who might take a security interest in the equipment 5. Ownership of the equipment will transfer to the customer upon full payment, and will vary by contractual arrangement Legal Requirements and Notification 1. Compliance with relevant laws and standard practices, including any applicable permits, licenses, or regulatory approvals to perform the work 2. Identify what jurisdiction of law the contract will be interpreted under 3. Detail how to notify the other party of changes in the contract and who they should be addressed to Representations 1. Each party must have the appropriate authority to sign and execute the contract 2. In some cases a Corporate Resolution or Certificate of Partners may be called for

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3. Attest to having no suits or proceedings pending that will adversely affect the party’s ability to perform its obligations 4. Verify that government approvals are not required to execute this agreement, or that such approvals have already been obtained ESCO Insurance 1. Require comprehensive commercial general liability 2. Worker’s compensation limits are usually stipulated by the laws of the location where the work is being performed 3. Automobile insurance covering all owned and hired vehicles 4. Certificates of insurance must be sent to the customer by the ESCO’s insurance agent 5. Notice of any changes to the policy or cancellation of the policy must be sent to the customer within an amount of time detailed in the contract 6. The customer should be named as an Additionally Insured on the ESCO’s policy for the term of the contract Customer’s Insurance 1. Coverage on the equipment must be carried by the customer and should name the equipment owner as loss payee (usually the ESCO until title to the equipment transfers to the customer). In this case, the customer must provide a certificate of insurance naming the ESCO as loss payee. 2. Customer should name ESCO as an Additional Insured Bonds 1. In some cases the customer may require that the ESCO obtain a Performance Bond 2. Performance bonds must be obtained prior to commencement of installation 3. A bond covers the installation period only and will terminate upon execution of the COA 4. The bond should be in the amount of the contract 5. Usually obtained through an insurance company 6. Include the cost of the bond in the contract Events of Default 1. Non-‐payment 2. False or misleading representations 3. Failure to meet terms and conditions of contract 4. Failure of the customer to perform required maintenance on the equipment Remedies Upon Default 1. Available legal remedies 2. Termination of the contract through proper legal process and collection of any associated termination value, or removal of the equipment

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3. Right to cure70 4. Indicate how long the party has to cure the event of default if possible 5. Address who is responsible for payments associated with the cure Assignment 1. The ESCO may want to assign the agreement or grant a security interest in the equipment to another party 2. Provisions should be included in the contract as to how the assignment would take place 3. Customer must be notified of the assignment 4. The ESCO’s obligations under the contract do not typically transfer to the assignee Hazardous Materials 1. Hazardous materials, such as asbestos or leaking PCB ballasts may be encountered in the course of performing the work 2. Work shall stop until the customer disposes of those materials 3. ESCO will notify customer in writing of the hazardous materials Lamp & Ballast Disposal 1. Usually taken care of by the ESCO through its subcontractors 2. Some lamps and ballasts contain hazardous materials and their disposal may be regulated 3. For liability reasons, the ESCO should never take ownership of the hazardous materials 4. It is recommended that the customer contract with a qualified disposal company that may be suggested by the ESCO. The whole disposal process should be well documented by all parties. Severability 1. In the event that any provision of the agreement is declared unlawful, all other provisions will remain in force 2. There may be provisions in a DSM contract that need to be included in the ESA 3. Force Majeure clauses -‐ the force majeure clause in a contract excuses a party from not performing its contractual obligations due to unforeseen events beyond its control.

The right to cure is a written clause in a contract or lease that permits one party to rectify a default that most likely will terminate the agreement or cause financial loss or loss of other rights

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