An EPCM Approach
An EPCM Approach
Bringing Sustainable Energy to Alderney
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Project Challenge 2017
About
Sustainable
Direction
Sustainability Consultancy
Environmental Engineering
Project Delivery
About
Sustainable
Direction
Feasibility Studies
Financial Modelling
Front-End Engineering and Detailed Designs
Public Consultation
Technical Due Diligence
Planning, EIA and Environmental Permitting
Construction oversight and support services
Overall Project Management
Project Delivery
About
Sustainable
Direction
Particular experience in sustainable
energy
projects
Helping clients increase
security
of supply
Gain greater
control
over energy costs
Low or
Zero Carbon
Focus
No ‘one-size-fits-all’ – we find the
right
solution for your demand, which will be different
every time
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Experience in gas CHP, biomass, AD, wind, solar, hydro and marine
Project Delivery
Case Study:
Alderney Electricity Ltd
Energy solutions for a more prosperous island
Case Study:
Alderney Electricity Ltd
Initial Feasibility Study & Public Consultation
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Our Role
AEL updating electricity generation and distribution system for entire island
Includes new generation plant and opportunities for future renewable energy and district
heating
The improvements proposed will provide
better value
for domestic and business customers
improved
energy security
and continuity
a more
sustainable and prosperous economy
for Alderney
Project Overview
Start with WHY!
With a Twist!
Engineer- Procure- Construct-
Management
•
So what is it? And why would you do it?
Conventional PC
EPC / EPC – M
DBOO / DBOT
PFI / PPP
Other versions?
•
What is best for the full life cycle, for the owner / user /
investor?
Risk / Reward / Return
When are these questions asked by the stakeholders and when, where and how does
Governance happen? (The 2012 Olympics provided very good examples (see the web))
Engineer- Procure- Construct-
Management
Management services contracted on behalf of Client- acting as “Owners Agent”
Combined management and administration of project controls, budget, program + quality
On the client side of the table in terms of delivery by the supply chain
The EPCM Role
Integrated Engineering, Procurement and Construction contracting
EPC Contractor delivers project on turn-key basis
Client benefits include:
Better risk management
Consolidated responsibility
Drives ownership of project lifecycle
Enhanced management oversight
What is EPC?
Engineer- Procure- Construct-
Management
When does Design Freeze Occur?
When Should Optioneering Occur?
When Should Value Engineering Occur?
How do we understand, communicate and manage this
The EPCM Role
Always, Sometimes, Evolve into knowing what they want
They change it
And change it again (which is good and fair)
EPCM – Client Requirement Management
Engineer- Procure- Construct-
Management
Management services contracted on behalf of Client- acting as “Owners Agent”
Combined management and administration of project controls, budget, program +
quality
Control Scope, Optioneering and Value Engineering at the RIGHT time
The EPCM Role
EPC M Contractor is to deliver the project on a turn-key basis
Vendors/ Suppliers/ Contractors want:
Profit, Additional Work, Fair Process
Communication is key and roundtable engagement
Clarity and Timeliness on change and we require that from them
EPCM – Construction and Vendor Management
Engineer- Procure- Construct-
Management
This is our main job
To keep the parties aligned
The EPCM Role
As always:
Scope
Schedule (Programme)
Budget
And Change Management
Drives ownership of project lifecycle
Enhanced management oversight
EPCM – Programme and Budget Management
Engineer- Procure- Construct-
Management
Engineer- Procure- Construct-
Management
Engineer- Procure- Construct-
Management
Engineer- Procure- Construct-
Management
Engineer- Procure- Construct-
Management
Engineer- Procure- Construct-
Management
Case Study:
Alderney Electricity Ltd
Specialist role: Client does not resource this kind of work frequently!
Integrated within Client team across project life-cycle:
Feasibility Assessment > FEED/ Detailed Design > Project Financing > Delivery
Why has EPCM approach been successful on Alderney?
Unbiased, “trusted partner” function: Enhances Client team
expertise
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The Twist
Case Study:
Alderney Electricity Ltd
1,903 people on the island, forecasting an increase to 2036 by 2036
Demand is
1.2 MW peak
, with
baseload of 400 – 500 kW
Current system is
complex
and
aging
, with
manual
controls and a one-way grid
7x diesel generators, between 20 and 50 years old
Generators will soon need an
expensive overhaul
, giving opportunity the Alderney to
rethink its energy generation making it
more sustainable
for the future
Old System
Case Study:
Alderney Electricity Ltd
Needed to consider
unique demands and constraints
of island environment
Demand cannot be met purely with renewables due to issues of
reliability and consistency
of supply
Feasibility Stage
Case Study:
Alderney Electricity Ltd
Proposed Solution
Installation of 8x modern, dual-fuel engines, capable of using both fossil- and bio-fuels
Compact, reliable, with excellent fuel consumption
Load-sharing to maximise efficiency and extend useful life
Fully integrated automatic control system
Plug-and-play format – simple to maintain and change system to meet demand
Control system compatible with future solar PV
Case Study:
Alderney Electricity Ltd
Added Benefits
District heating of
community buildings with
waste heat
Solar PV
to meet demand
peaks
Battery
backup for
uninterruptible power
supply
Summary
The Sustainable Direction Approach
Guiding Energy Strategy
Integrated EPCM Role
Working with specialist design & install teams
Co-ordinating interfaces (e.g. client doing civils
and prep works)
Managing risk & contractual issues
Benefit to the Client
Trusted partner
Impartial
technical experts, not suppliers of specific technology
Bringing the
best solution
for the client, with no preconceptions
Continued
technical due diligence
throughout the project
Firm project management
with many players, phases and interfaces involved
Any Questions?
Dr John Henry Looney and Kris Atkins
Sustainable
Direction Ltd
www
.sustainabledirection.
com
+44 (0) 1452 382218
@SDirectionL
With special thanks to
James Lancaster and Alan Graca, Alderney Electricity Ltd,
and
Jon Stokes, Team Stokes Ltd
Explore Dr. John Henry Looney's EPCM approach to deliver sustainable energy solutions in Alderney. Learn about the challenges faced and innovative strategies implemented to bring about positive change in the energy sector.
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Presentation Transcript
An EPCM Approach Bringing Sustainable Energy to Alderney Dr John Henry Looney Sustainable Direction Ltd Project Challenge 2017
About Sustainable Direction Sustainability Consultancy Environmental Engineering Project Delivery
About Sustainable Direction Project Delivery Feasibility Studies Financial Modelling Front-End Engineering and Detailed Designs Public Consultation Technical Due Diligence Planning, EIA and Environmental Permitting Construction oversight and support services Overall Project Management
About Sustainable Direction Project Delivery Particular experience in sustainable energy projects Helping clients increase security of supply Gain greater control over energy costs Low or Zero Carbon Focus No one-size-fits-all we find the right solution for your demand, which will be different every time We call this approach meso energy Experience in gas CHP, biomass, AD, wind, solar, hydro and marine
Case Study: Alderney Electricity Ltd Energy solutions for a more prosperous island
Case Study: Alderney Electricity Ltd Project Overview AEL updating electricity generation and distribution system for entire island Includes new generation plant and opportunities for future renewable energy and district heating The improvements proposed will provide better value for domestic and business customers improved energy security and continuity a more sustainable and prosperous economy for Alderney Our Role Initial Feasibility Study & Public Consultation Full Engineering, Procurement, Construction Management (EPCM)
Engineer- Procure- Construct- Management So what is it? And why would you do it? Conventional PC EPC / EPC M DBOO / DBOT PFI / PPP Other versions? What is best for the full life cycle, for the owner / user / investor? Risk / Reward / Return When are these questions asked by the stakeholders and when, where and how does Governance happen? (The 2012 Olympics provided very good examples (see the web))
Engineer- Procure- Construct- Management What is EPC? Integrated Engineering, Procurement and Construction contracting EPC Contractor delivers project on turn-key basis Client benefits include: Better risk management Consolidated responsibility Drives ownership of project lifecycle Enhanced management oversight The EPCM Role Management services contracted on behalf of Client- acting as Owners Agent Combined management and administration of project controls, budget, program + quality On the client side of the table in terms of delivery by the supply chain
Engineer- Procure- Construct- Management EPCM Client Requirement Management Always, Sometimes, Evolve into knowing what they want They change it And change it again (which is good and fair) The EPCM Role When does Design Freeze Occur? When Should Optioneering Occur? When Should Value Engineering Occur? How do we understand, communicate and manage this
Engineer- Procure- Construct- Management EPCM Construction and Vendor Management EPC M Contractor is to deliver the project on a turn-key basis Vendors/ Suppliers/ Contractors want: Profit, Additional Work, Fair Process Communication is key and roundtable engagement Clarity and Timeliness on change and we require that from them The EPCM Role Management services contracted on behalf of Client- acting as Owners Agent Combined management and administration of project controls, budget, program + quality Control Scope, Optioneering and Value Engineering at the RIGHT time
Engineer- Procure- Construct- Management EPCM Programme and Budget Management As always: Scope Schedule (Programme) Budget And Change Management Drives ownership of project lifecycle Enhanced management oversight The EPCM Role This is our main job To keep the parties aligned
Case Study: Alderney Electricity Ltd Why has EPCM approach been successful on Alderney? Specialist role: Client does not resource this kind of work frequently! Integrated within Client team across project life-cycle: Feasibility Assessment > FEED/ Detailed Design > Project Financing > Delivery Unbiased, trusted partner function: Enhances Client team expertise Additional management complexity: Client also acting as Principal Contractor
Case Study: Alderney Electricity Ltd Old System 1,903 people on the island, forecasting an increase to 2036 by 2036 Demand is 1.2 MW peak, with baseload of 400 500 kW Current system is complex and aging, with manual controls and a one-way grid 7x diesel generators, between 20 and 50 years old Generators will soon need an expensive overhaul, giving opportunity the Alderney to rethink its energy generation making it more sustainable for the future
Case Study: Alderney Electricity Ltd Feasibility Stage Needed to consider unique demands and constraints of island environment Demand cannot be met purely with renewables due to issues of reliability and consistency of supply
Case Study: Alderney Electricity Ltd Proposed Solution Installation of 8x modern, dual-fuel engines, capable of using both fossil- and bio-fuels Compact, reliable, with excellent fuel consumption Load-sharing to maximise efficiency and extend useful life Fully integrated automatic control system Plug-and-play format simple to maintain and change system to meet demand Control system compatible with future solar PV
Case Study: Alderney Electricity Ltd Added Benefits District heating of community buildings with waste heat Battery backup for uninterruptible power supply Solar PV to meet demand peaks
Summary The Sustainable Direction Approach Guiding Energy Strategy Integrated EPCM Role Working with specialist design & install teams Co-ordinating interfaces (e.g. client doing civils and prep works) Managing risk & contractual issues Benefit to the Client Trusted partner Impartial technical experts, not suppliers of specific technology Bringing the best solution for the client, with no preconceptions Continued technical due diligence throughout the project Firm project management with many players, phases and interfaces involved
Any Questions? Dr John Henry Looney and Kris Atkins Sustainable Direction Ltd www.sustainabledirection.com +44 (0) 1452 382218 @SDirectionL With special thanks to James Lancaster and Alan Graca, Alderney Electricity Ltd, and Jon Stokes, Team Stokes Ltd
