ENERGY MANAGEMENT ISSUES

Recommendations of the EMC (Items 30 - 34)

Since the issue of the original report the following actions have occurred:

1. Expressions of interest invited from Energy Performance Contracting (EPC) companies. Eleven responses received and evaluated.

2. Discussions took place with 2 short listed companies, which submitted more detailed proposals as requested. The considerable tariff reduction arising from deregulation impacted severely on the financial viability of the proposed project. Difficulty was encountered in undertaking a meaningful comparison of the two proposals because of the reduced financial viability.

3. An agreement was signed with the Sustainable Energy Development Authority (SEDA), which was set up by the NSW Government to facilitate reductions in "Greenhouse Gas" emissions. SEDA is providing expertise to properly evaluate proposals.
   

4. A new selected tender response was sought for an Energy Performance Contractor. Rand Merchant Bank (RMB) was selected as the preferred EPC and negotiations are currently underway to finalise a letter of intent for the contract.

5. Negotiations to achieve a self-sustaining Energy Performance Contract have progressed. Draft recommendation to the Vice Chancellor prepared, but awaiting final version of contract from RMB.

6. However, using the advice of SEDA, all refurbished works involve the use of energy efficient fittings and equipment. To date UoW has made changes that will result in reduced energy usage in a number of areas. Statistics that have been determined to date demonstrate a reduction in greenhouse gas emission of 775 tonnes of CO2 per annum.

7. Unfortunately RMB have decided to exit the Performance Contract business, and are seeking to sell this part of their business to the market place. The technical arm of RMB (the important part for UoW) will be sold in this package. We will wait to see the outcome, and will probably follow the technical arm of RMB to the financing purchaser of this business unit.

8. University of Wollongong was awarded the Bronze Green Globe Award by the Sustainable Energy Development Authority in March 2000 - for achieving Energy Efficient Upgrades to 20% of its operations.

9. SEDA is advising UoW on energy efficient fittings and systems for building refurbishment and construction - eg Bld 30 (lighting, power consumption, sensors).

10. In discussions with AGL (the replacement for RMB) it has been proposed that the Energy Performance Contract be changed to an Energy Management Partnership. There are financial advantages to this change - as UoW will reap all energy reduction savings after consulting costs to AGL are deducted.

11. Big Switch have been retained by the University of Wollongong to undertake a full review of lighting efficiencies through major buildings in campus, and a number of buildings will have full plant reviews as well. A report is expected from Big Switch recommending a number of changes, with a full cost benefit analysis for each task. The recommendations will be undertaken as funding for each program is available.

Ducks outside building 40