Energy Efficiency Opportunities Report 2009 AMP Limited Public Report
1 Period to which this report relates Start 1 July 2008 End 30 June 2009 Part 1 Information on s completed to date Table 1.1 Description of the way in which the Corporate Group (or part of it) has carried out its s AMP Limited ( AMP ) is committed to its Energy Efficiency Opportunities ( EEO ) program. AMP s EEO reporting structure is across two businesses: 1. AMP Capital Holdings Limited (ACN 078 651 966) which includes two business units: AMP Capital Shopping Centres Pty Ltd ( AMP Capital Shopping Centres ) and AMP Capital Office and Industrial Pty Ltd ( AMP Capital Office and Industrial ); and 2. AMP Financial Services Holdings Limited (ACN 076 716 704) which incorporates all of AMP s tenanted office space (known internally as Workspace). A senior management committee oversees AMP s EEO delivery of the EEO process. units within the businesses listed above were assigned to complete site s which were regularly tracked by the EEO Subcommittee and its members. Descriptions of each site : 1. AMP CAPITAL HOLDINGS LIMITED There are two business units of AMP Capital Holdings Limited involved with the EEO program: a) AMP Capital Shopping Centres AMP Capital Shopping Centres has conducted six new EEO s during this reporting period. This is in addition to the initial performed on Royal Randwick Shopping Centre in 2008, the progress of which is included in Part 2B of this report. The properties in this period s are Pacific Fair in Queensland, Garden City and Karrinyup in Western Australia, Knox in Victoria, and Warringah Mall and Marrickville Metro in New South Wales. As part of the s of these shopping centres, AMP Capital Shopping Centres developed a project and communications plan, performed site inspections, collected and reviewed data, performed baseline analysis, identified in workshops and undertook preliminary economic evaluation of. Details of these s are included in Part 2 of this report.
2 b) AMP Capital Office and Industrial During the current reporting period, AMP Capital Office and Industrial completed an of the Collins Place complex in Melbourne, Victoria and 5 buildings at the Coronation Drive Park in Milton, Queensland. This is in addition to the initial performed on the Angel Place office building in Sydney, New South Wales, the progress of which is included in Part 2B of this report. Collins Place Complex Melbourne, Victoria Energetics, a specialist management consultancy in the business of climate change, was appointed to assist AMP Capital Office and Industrial in carrying out the in response to the Commonwealth Government s EEO program and to the Victorian Government s Environment Resource and Efficiency Plan (EREP) Program. AMP Capital Office and Industrial conducted a review of the historical consumption of, water and waste at Collins Place as part of the site to identify, amongst other things, how is consumed. As part of this review, AMP Capital Office and Industrial collected data, visited the site, spoke with appropriate staff and analysed data. Site inspections and workshops were undertaken by external advisers Energetics. These undertakings involved, amongst others, the General Manager of Collins Place, ISS Facilities Services (External Facilities Managers), AMP Capital Investors National Operations Group and the Hotel Sofitel Management Team. A number of were identified. Some of these have been costed, approved and are either currently being implemented or have been completed. Others have been included in the property s three year business plan for future implementation. An environmental strategy plan for the site has been prepared and this will be reviewed on a quarterly basis to track the objectives. Coronation Drive Park Milton, Queensland An was also completed of the Coronation Drive Park in Milton, Queensland. A number of were identified. Some of the have been implemented and savings are already being realised. These projects primarily relate to lighting upgrades. Angel Place Office Building Sydney, New South Wales Following the implementation of some identified in year one s, Angel Place has achieved an improved National Australian Built Environment Rating System (NABERS) Energy rating of a half star to 3.5 stars. This represents a reduction in electricity consumption of 352,340 Kw Hours from the previous rated period. Based on projects undertaken and savings made at other sites, a representative sampling approach has been taken with items such as upgrading car park ventilation and lighting controls. This has resulted in reductions being made at these sites. c) The Infrastructure business unit Last year AMP included Principal Aged Care Nursing Homes as part of this report. Further investigations have indicated that its inclusion is not required under the EEO program and the previous data included in the 2008 report has been amended accordingly. AMP s EEO Assessment and Reporting Schedule was amended to reflect this.
3 The eight assessed in 2008 for Principal Aged Care have been implemented and there are now processes in place for monitoring and collecting data and procedures for savings in operational and capital works projects. These processes will continue to seek to manage and establish benchmarks for management. 2. AMP FINANCIAL SERVICES HOLDINGS LTD AMP s Workspace team arranged for a representative audit to be conducted on AMP s offices at the Jessie Street Centre, Parramatta, New South Wales in 2009. This followed on from previous site specific audits carried out in 2008. It is intended that this audit will act as a precursor to enable Workspace to roll out across a number of smaller sites nationally. External consultants were engaged to advise on the costs and likely benefits of implementing a number of. These were identified during the course of conducting environmental workshops which included input received from external contractors, consultants, key stakeholders and management representatives. The are being reviewed and evaluated for future implementation. Table 1.2 Energy use assessed Group member and/or business unit and/or key activity and/or site that has had an completed by the end of this reporting period. Period over which was undertaken 1 Energy use per annum in GJ 2 in the current reporting year AMP Capital Holdings Limited 1 July 2008 to 30 June 2009 761,799 AMP Financial Services Limited 1 July 2008 to 30 June 2009 15,533 assessed 379,888 use of the group in the current reporting year 777,332 assessed expressed as a percentage of total current use 48.87% 1 This should be the start and finish date (month and year) for the (planned dates were nominated in Table 3.1 of the approved ARS). 2 Energy Bandwidth may only be used if approved in the Assessment and Reporting Schedule. Table 1.3 Accuracy of use data Entity % achieved AMP Capital Holdings Limited < 2% AMP Financial Services Limited < 2% Reasons for not achieving data accuracy to within ±5%
4 Part 2 Energy Efficiency Opportunities that have been identified and evaluated
5 Part 2A New Assessments completed during the reporting period 1. AMP CAPITAL HOLDINGS LIMITED Energy use during the current reporting period 335,292 GJ Table 2.1 Opportunities assessed to an accuracy of ±30% or better Status of identified Estimated annum by payback period (GJ) annum (GJ) Identified 70 3,995 10,516 18,295 32,806 Under Investigation 34 1,758 5,735 6,526 14,019 To be 10 617 2,805 1,561 4,983 Implementation 10 1,088 1,260 9,993 12,341 16 532 716 215 1,463 Table 2.2 Opportunities assessed to an accuracy of less than ±30% Status of identified Estimated savings per annum by payback period (GJ) annum (GJ) Identified NIL Under Investigation To be Implementation
6 2. AMP FINANCIAL SERVICES HOLDINGS LIMITED Energy use during the current reporting period 4,793 GJ Table 2.1 Opportunities assessed to an accuracy of ±30% or better Status of identified Estimated savings per annum by payback period (GJ) Identified 8 830 43 0 873 Under Investigation 5 170 30 200 To be Implementation 3 660 13 673 annum (GJ) Table 2.2 Opportunities assessed to an accuracy of less than ±30% Status of identified Estimated savings per annum by payback period (GJ) annum (GJ) Identified NIL Under Investigation To be Implementation
7 Part 2B Update of s originally reported in previous reporting periods 1. AMP CAPITAL HOLDINGS LIMITED Energy use during the current reporting period 335,292 GJ Table 2.3 Opportunities assessed to an accuracy of ±30% or better Status of identified Identified 37 (36) Under Investigation 11 (14) To be 2 (15) Implementation 2 (2) 22 (5) Estimated annum by payback period (GJ) 554 (545) 545 (545) 1 8 3,641 (3,654) 975 (2,608) 1,620 (454) 318 728 (592) 281 (270) 11 annum (GJ) 4,476 (4,469) 1,531 (3,153) 1,620 (454) (270) 270 319 (270) 1,006 (592) Notes: Current Period in bold Last Report in Brackets ( ) Table 2.4 Opportunities assessed to an accuracy of less than ±30% Status of identified Estimated savings per annum by payback period (GJ) annum (GJ) Identified NIL Under Investigation To be Implementation
8 2. AMP FINANCIAL SERVICES HOLDINGS LIMITED Energy use of the entity during the current reporting period 4,793 GJ Table 2.3 Opportunities assessed to an accuracy of ±30% or better Status of identified Identified 16 (16) Under Investigation 2 (12) To be 2 (3) Implementation 3 6 (1) Notes: Current Period in bold Last Report in Brackets ( ) 3 Estimated savings per annum by payback period (GJ) 183 (55) (55) 55 128 288 (416) (416) 5 146 128 9 annum (GJ) 471 (471) (471) 5 146 183 137 Table 2.4 Opportunities assessed to an accuracy of less than ±30% Status of identified Estimated savings per annum by payback period (GJ) annum (GJ) Identified NIL Under Investigation To be Implementation
9 Part 2C Details of at least three significant found through EEO s Table 2.5 Description of three significant Opportunity 1 AMP Capital Office and Industrial Collins Place, Melbourne, Victoria The Collins Place complex is a large commercial site located in the Melbourne CBD. Collins Place consists of two office towers, a five star hotel, a retail complex and a car park. The retail accommodation comprises 50 outlets; this includes a 280 seat food court at lower ground level. The total net lettable area of the complex is approximately 143,850 sqm. The Central Chiller Plant at Collins Place had been in operation since the original construction of the Complex in the early 1970s. The chillers were refurbished in the mid 1990s complete with a change of refrigerant to low ozone depleting refrigerant. The chiller plant still had a number of year s life expectancy. However, due to an increase in the frequency of operational faults and high consumption compared to modern equipment, a decision was made to replace the chiller plant. The chiller plant was a large user of on the site (approximately 40% of total site ). For that reason, a study was carried out to establish how a new plant could be installed to provide a more efficient outcome. The chiller plant was located in the level P4 basement plant room, and consisted of six chillers, each of a nominal 3500KW capacity. Studies of recent summers have indicated that the peak load of the centre can in most instances be catered for by operating four of the six chillers. However there were times when the fifth chiller cycles on and off during days of high load, using considerable. Studies also concluded that operating with chillers which have Variable Speed Drives (VSD) on compressor motors provides a major increase in operational efficiency. As a result, AMP Capital Office and Industrial concluded that the existing chillers numbers three, four, five and six all be replaced by new efficient VSD chillers. A decision was also made to install a new direct digital control (DDC) control system to optimise the plant operation. The new high efficient VSD chillers operate to cater for all load conditions under normal circumstances. Chillers one and two would be retained for spare capacity, and would only be operated: to satisfy the odd occasion when extremely high loads are present for extended periods; or to maintain them in good operating condition, so that they are ready to operate while the others are in maintenance, or during other forced shut downs. AMP Capital Office and Industrial also installed metering in a number of key locations to keep a more accurate record of usage and to determine which parts of the Collins Place complex consumes chilled water. This enabled monitoring of usage and subsequent adjustment of control setpoints for further potential reductions in usage. One of the prime considerations in moving to a new chiller installation was to take advantage of newer technology and to improve efficient installation as much as possible. Much of this improvement was achieved because current day equipment is more efficient in operation when
10 compared to the equipment that is currently installed. The bulk of chiller operation is at part load, and thus the use of VSD chillers enables the capacity produced to more effectively match the capacity required for efficiency. The new arrangement of the chillers is such that more than one chiller operates at any one time at reduced capacities as opposed to a single chiller operating at full capacity. The result is a more efficient system. The existing eight cooling towers located in the level three plant room have also been in service since the original construction of the complex. The cooling towers were replaced with five new high efficiency cooling towers. The new cooling towers include VSD technology for the fans to reduce the during times of lower loads. The condenser water temperature on the new cooling towers is controlled to a lower temperature than the previous cooling towers in order to optimise the performance of the new chiller plant. There were obvious benefits in providing higher efficiency equipment, not least of which is a reduction in CO2 emissions, thereby having a direct bearing on any NABERS rating. In addition to savings and reduction of CO2 emissions, it is expected that substantial water savings will be achieved with the new cooling tower system. The table below outlines the savings in KWhrs. The chillers have their own separate power supply from the Melbourne CBD grid and therefore very good historical data is available for comparison to current consumption. The first stage of the chiller upgrade was completed in October 2008 and AMP Capital Office and Industrial has achieved over 30% saving each month. The saving over a 12 month period based on an average 35% saving is 2,620,827 kwh. Savings in KWhrs Month 2007 2008 2009 Saving on same period last year Jan 849,171 965,432 640,921 34% Feb 889,738 869,317 564,649 35% Mar 850,599 951,656 501,283 47% Apr 608,635 566,157 343,536 39% May 560,393 463,279 309,206 33% Jun 355,959 357,007 235,917 34% Jul 352,873 329,784 208,776 37% Aug 409,433 344,380 207,945 40% Sep 461,640 448,493 3% Oct 597,700 504,882 16% Nov 682,957 437,220 36% Dec 868,979 419,692 52% 7,488,077 6,657,299 TOTAL ANNUAL SAVINGS 2,052,554 kwh 2853 Tonnes C02, 27% of 2007 consumption. Opportunity 2 AMP Capital Shopping Centres Randwick Shopping Centre, Randwick, NSW An efficiency audit identified the cooling towers at Randwick Shopping Centre to be one of the largest consumers within that shopping centre. Accordingly, AMP Capital Shopping Centres investigated means to improving efficiency at the shopping centre.
11 Further s were conducted by shopping centre managers in conjunction with external advisers Energetics. These further s revealed that significant savings could be achieved with the introduction of variable speed drives (VSD) to the fan motors. The existing fan motor operates on a fixed speed basis. It is controlled by a basic water temperature thermostat. The water temperature is controlled to meet the airconditioning demand of the shopping centre and as this demand varies, so does the fan motor. This mode of operation is inefficient and, coupled with a basic water temperature control band, it creates unnecessary waste in fan motor and also can accelerate the wear and tear of the fan motor. The introduction of VSDs would assist the cooling towers to work within a more effective range of temperatures by regulating the speed of the cooling tower fan motors within a tighter temperature control band. This of course will require greater sophistication in temperature control by interfacing an enhanced building control system with the VSD. This project will include temperature control enhancements along with new VSDs. Two variable speed drives with enhanced water temperature controls were installed to reduce the consumption in operating the cooling tower fans. Details of the installation of two variable speed drives are contained are as follows: Title: Installation of two variable speed drives with enhanced controls to reduce the quantity of electricity required to drive the fan Status: in 2008 Cost of Implementation: $16,500 Annual savings: $6,600 Potential Greenhouse Emission reduction: 60t CO2e/year Opportunity 3 AMP Workspace Jessie Street Centre, Parramatta, NSW (AMP Tenancy) The EEO representative of Jessie Street Centre in Parramatta identified the lighting control system as an area where large amounts of are wasted. The current procedures only allow for manual switching off of the lighting control systems, which cover large areas. Energy savings can be achieved by installing a staged control system that turns off half the lights in an area when no occupants are detected. All of the other lights would be turned off after another ten minutes. Other efficient options are also being considered. These options include the installation of push button runon timers and utilising meeting room motion detectors.
12 Part 3 and 4 Voluntary Contextual Information & Declaration
13 Table 3.1 Contextual Information No contextual information provided. Table 3.2 Energy use expressed in Greenhouse Gas emissions and as an use indicator Period of use Name of group member/ business unit/ key activity/site Not Applicable Energy use pa (GJ) to Energy use pa (GGE) Energy use as an indicator* Table 3.3 Opportunities assessed to an accuracy of ±30% or better ($ value) Status of identified Identified Under Investigation To be Implementation Not Applicable Estimated savings per annum by payback period ($) annum ($)
14 Table 3.4 Changes in use as an indicator Name of group member/ business unit/ key activity/site Not Applicable Current use as an indicator Previous use as an indicator Reasons for change
15 Part 4 Declaration Table 4.1 Declaration of accuracy and compliance (mandatory information) The information included in this report has been reviewed and noted by the board of directors and is to the best of my knowledge, correct and in accordance with the Energy Efficiency Opportunities Act 2006 and Energy Efficiency Opportunities Regulations 2006. Craig Dunn, CEO of AMP Limited