Project development and management

  Our expertise includes:  

• Technical pre-feasibility/feasibility studies
• Investment analysis and financial modelling
• Review of alternative financing options
• Development and implementation of benefit realisation plan
• Specialist expertise in accessing funding from government, utility-sponsored programs and white/green certificate schemes
• Assessment of asset ownership, financial risk and project management options
• Advice on commercial arrangements, establishment of performance guarantees, and robust measurement and verification plans
• Investment analysis and financial modelling

Energetics has strong project financial modelling capabilities to analyse typical energy/carbon related capital intensive projects. Our investment analysis services include:

• Whole of life cycle cost modelling supported by expert-based energy and carbon related savings/revenue forecasts
• Independent review of total cost estimates and cost projections
• Assessment of technical options
• Assessment of ownership / procurement options
  • Engineer Procure Construct contract
  • Build-Own-Operate-Maintain model with different risk transfer options
  • Energy Supply agreement
• Modelling investment risks and uncertainties:
  • Sensitivity analysis and risk quantification
  • Value-at-risk stress testing
  • Real Options Valuations

Identifying and implementing energy efficiency projects is one of the most effective ways business can respond to rising energy costs and market volatility.

"Energy efficiency is the low-hanging fruit of the clean-energy revolution".  (Jeremy Oppenheim, Eric Beinhocker, and Diana Farrell, McKinsey Global institute, November 15, 2008)

For over 25 years, Energetics has assisted Australian business to achieve sustainable energy savings, productivity gains and improved corporate profile through energy efficiency improvements.  We have supported projects as part of retrofits and upgrades and have incorporated energy efficiency into the design phase of Greenfield and expansion projects for optimum return on investment.

We are familiar with the range of relevant issues, including Building Codes and planning issues and employ a skilled team of energy auditors, energy management experts and Australian Building Greenhouse Rating (ABGR) assessors.

Energetics continues to help clients achieve energy and cost savings, improved process efficiency and environmental performance through:

• strategic energy and carbon management advice to help clients’ reduce costs and effectively manage associated risks
• our range of diagnostic tools for energy, water and waste, including One-2-Five®, Achiever® and Challenger®, which enables organisations to quickly identify opportunities for savings and improvement within their management processes
• assessing opportunities for reducing energy consumption and costs
• energy auditing and baseline reporting
• feasibility studies to determine the risks and limitations, benefits, and costs including pricing, savings and return on investment of energy efficiency projects
• business case development for funding and financing of energy efficiency improvements
• facilitating Energy Performance Contracting  which guarantees capital investment for Energy Conservation Measures is recouped through utility bill savings that result from the project

Energetics helps clients facilitate the transition to renewable energy. With experience across all renewable energy technologies, Energetics provides a range of independent technical and commercial advisory services. We specialise in project development, technology review, investment and financing options and the commercialisation of emerging technologies.

Energetics advises end users, government, utilities and technology developers through:

Energetics’ technical expertise and strategic advice helped Woolworths identify and implement cost effective renewable energy projects as part of our long term sustainability plan. 

Armineh Mardirossian, Group Manager - Corporate Responsibility Community & Sustainability, Woolworths Limited

• feasibility studies
• technology assessments
• technical, financial and contractual due diligence
• facilitating project development
• portfolio wide assessments of renewable energy opportunities
• the future commercial viability of technologies
• strategy and policy development and implementation
• negotiation of power off take agreements
• carbon offset accreditation
• project financing advisory services

We also have skills and experience in on-site renewables, focusing predominantly on wind, biogas and solar.

Renewable Energy Leasing Solutions

Energetics provides a lease-based approach to project finance that matches the project benefits/revenue with the equipment lease term to deliver a cash positive outcome from day one. The benefits include:

• lower energy costs and hedge against rising electricity / diesel and carbon costs

• no upfront capital required and assets off-balance sheet

• packaged solution integrated with your existing power system

• fixed lease terms matched to site tenure or mine life with attractive options to extend the lease at low cost

• zero carbon priced energy  

Combined heat and power (CHP), also known as cogeneration, and combined cooling, heating and power (CCHP), also known as trigeneration, are efficient, clean, and reliable approaches to generating power and thermal energy from a single fuel source. By installing a CHP or CCHP system designed to meet the thermal and electrical base loads of a facility, CHP/CCHP systems can greatly increase the facility's operational efficiency and decrease energy costs. At the same time, they can also reduce greenhouse gases emissions by displacing carbon intensive grid power.

Energetics provides a range of independent technical and commercial advisory services for assessing and implementing new cogeneration and trigeneration systems and improving performance of existing installations for industrial and commercial customers. 

Energetics’ technical expertise and strategic advice helped Woolworths identify and implement cost effective renewable energy projects as part of our long term sustainability plan. 

Armineh Mardirossian, Group Manager - Corporate Responsibility Community & Sustainability, Woolworths Limited

Energetics advises end-users, government, utilities and technology developers through:

• Technical pre-feasibility and feasibility studies
• Facilitating project development including detail design studies
• Whole life cycle costing supported by expert-based energy and carbon related savings/revenue forecasts
• Assessment of asset ownership and project management options
• Specialist expertise in accessing funding from government- and utility-sponsored programs and getting accreditation for green certificates
• Modelling investment risks and uncertainties
• Business case development
• Advice on commercial arrangements, establishment of performance guarantees
• Technical, financial and contractual due diligence Negotiation of power off take agreements
• Performance assessment and revenue optimisation
• Gas procurement advice to meet future energy needs
• Set up reporting, monitoring and benchmarking of new systems

Energetics is an expert at getting energy projects across the line and implemented. We bring to the table a combination of business analytics, technical energy expertise, energy markets know-how, in-depth knowledge of energy/carbon grants, and financing options for distributed generation projects.

A successful metering strategy requires additional meters or logging devices to be designed and installed on site to monitor how much energy is being used and where it is being used. Once the data is captured, we work with clients to identify where energy savings can be achieved.

Energetics' metering outcomes include:

• capturing energy consumption data (kWh)
• target the source of energy consumption (site, building, tenancy, activity area, etc) and isolating sources
• energy consumption reporting outlining energy use patterns and trends
• identifying opportunities for energy efficiency improvements and peak load demand management

Energetics also provides monthly reporting and interval data exceptions reporting. 

Energetics is an independent and experienced Energy Performance Contracting facilitator, building relationships between property owners and energy service companies (ESCOs). We remove the complexity of Energy Performance Contracting and help clients achieve the minimum guaranteed savings within the expected timeframe through:

• developing Expressions of Interest and/or Request for Proposals specifications
• independent evaluation of the ESCO’s offers, advising on contract terms and conditions, and negotiation of the Detailed Facility Study (DFS) agreement
• independent evaluation of the DFS, preparation of Treasury Loan applications (when applicable for government) and assistance in EPC negotiation
• independent review of the Works Specification, review of the measurement and verification plan
• support during the implementation phase and the commissioning of the Energy/Water Conservation Measures
• independent review of the measurement and verification plans and confirming actual savings generated

Energetics works with State governments to access Treasury loan funding through Energy Performance Contracting to upgrade government facilities such as hospitals, office buildings museums, libraries, court houses. We also work with  private organisations to implement capital intensive projects such air conditioning upgrades or boiler and chiller replacements using these processes  as a means to help finance or  to ensure that the anticipated outcomes are actually achieved.

We have facilitated the procurement and development of more than twenty implemented or approved Energy Performance Contracts in excess of $50 million, with an average internal rate of return of more than 16% over 15 years. Customers’ electricity savings exceed 46 GWh per year, and demand reduction is estimated to be in the order of 7 to 10 MVA.

What is an Energy Performance Contract?

Energy Performance Contacting involves an energy service company (ESCO) financing a project in exchange for a share of the energy cost savings. An Energy Performance Contract transfers economic and technical risks to the ESCO through a long-term financial guarantee to ensure that the projected energy, water, and operational cost savings materialise and are preserved over time. The ESCO assumes a complete turnkey responsibility for a comprehensive set of energy efficiency, water efficiency, operations and maintenance, cost efficiency, renewable energy and/or distribution generation improvement measures.

The main distinguishing feature is the financing of investments via the guaranteed cost savings achieved through improved efficiency within the terms of the contract. The remuneration of the services consists of a payment which is determined in dependence on the savings achieved. After termination of the contract the entire savings will benefit the client. At the end of the contract the property owner enjoys substantial ongoing savings as well as brand-new equipment/plant, which was funded by off-balance sheet funding.

The Energy Performance Contract stipulates:

• The level and structure of the investment
• The level of minimum annual performance guarantees provided by the ESCO (e.g. energy savings, NABERS rating)
• Details on the performance, implementation, operation and maintenance of the equipment to install for each Energy/Water Conservation Measure
• The duration of the partnership
• The rights of proprietary and usage of the systems

We are experienced in a range of grants, funding and financing mechanisms, such as:

• Low Carbon Australia – Energy Efficiency Program financing
• Environmental Upgrade Agreements
• Clean Energy Finance Corporation
• Utility on-bill financing
• Leasing Options

Low Carbon Australia

Energetics can help your business apply for:

• Finance for projects. We work with businesses, building owners, industry, local councils and other organisations to apply for finance to implement investment-ready energy and carbon saving upgrades.
• Co-investment finance. We partner with organisations seeking co-financing opportunities to deliver multiple energy and carbon saving projects, which may include a combined financial and technical solution offering.

Financial terms including financial product type, interest rate and payback period are tailored to suit each individual project and are defined once the proposal has been assessed.  

Environmental Upgrade Agreements

Energetics is an independent facilitator of Environment Upgrade Agreements (EUA), an agreement between a commercial building owner, a finance provider and a council in which:

• property owners access finance to improve the energy, water or environmental efficiency or environmental sustainability of those buildings
• a provider finances projects for environmental retrofits of commercial buildings
• environment upgrade repayments are levied through council rates and may be passed on to tenants via the building’s outgoings, provided savings to the tenant are greater or equal to the initial costs incurred.

We remove the complexity of Environment Upgrade Agreements through:

• addressing proposal criteria
• independent evaluation of the financiers’ offers, advising on contract terms and conditions, and negotiation of the agreement
• independent review of the Works Specification, review of the measurement and verification plan
• support during the implementation phase and the commissioning of the Energy/Water Conservation Measures

Utility on-bill financing

Energetics is an independent facilitator of utility on-bill financing which provides up front capital costs for energy efficiency projects and loan repayments are incorporated into future energy bills

Leasing Options

Energetics as an independent advisor can help identify ways to make the project viable. This may involve identification of ways to obtain benefits without the use of capital expenditure.  Energetics can identify alternative solutions and support you through the discussions with potential lessors.

Energetics assists businesses access funding by firstly understanding the nature and eligibility of the appropriate program, and then developing and tailoring the application to provide the best possible chance of securing the funding.

Should funding be awarded, Energetics can also assist to ensure successful project implementation and verification.

Energetics assists large end users access funding through:

1. Identifying the opportunity: Opportunities such as energy efficiency, electrical demand management or renewable energy generation projects can be identified through undertaking a specific opportunities review or gathered from previous audits/assessments undertaken as part of mandatory federal or state programs (EEO, ESAP, EREP).
2. Matching the opportunity with appropriate incentive program: Energetics keeps abreast of the various government and utility sponsored funding programs including their specific eligibility criteria and can work with you to identify appropriate funding streams for your circumstances and/or assist you to understand any guidelines associated with applying for these funds.
3. Building the business case and developing the application: Using our technical and commercial experience, we can assist in the development of the business case for internal approval and the writing of the application.
4. Funding agreement negotiation: Should the application be successful, we will work with you to drive the final approval and negotiation of the funding contract. This includes the design of a clearly defined measurement and verification plan that provides the ability to confirm the project objectives and support the funding submission. This is often a critical component to obtain an agreement from the funding body.
5. Implementation of the project: Successful implementation is vital to maximising the savings outcome. Given the resource constraints that many businesses currently face, our project management and technical experience can be used to ensure the project is implemented as efficiently and effectively as possible, to the level required to maximise the savings.
6. Verification of the savings: Good business practice dictates that savings achieved through the implemented project are verified to ensure the agreed outcomes are delivered. Some funds are contingent on the verification of savings. Energetics has significant experience in measurement and verification protocols and determining the most appropriate methodology for the implemented project.