Delivering solutions Stefan Camitz, Cape Town 2003-11-20 Procurement, a tool for market...

delivering solutions Stefan Camitz, Cape Town 2003-11-20

Procurement, a tool for market transformation

Stefan Camitz

WSP Environmental, Sweden

delivering solutions

Stefan Camitz, Cape Town 2003-11-20

Technology Procurement or: the art of buying what is not available

Conditions:

• Strong and competent buyers

• Willing to have something better

• A dialog between buyers and suppliers

• Potential for development

• Expected market waiting..



Many actors on the market…

Wholesaler

Retailer

Installation company

Owner ofthe building

ServiceConsultant

Sub supplier

Regulator, Admin.

USER

MANUFACTURER

Source: H Nilsson



Market Transformation

Product Performance

Market Penetration

Base case

Preferred Case

TechnologyProcurement (TP)

Aggregatedproc. (AP)& Labels

Standards& Directives

Source: H Nilsson



Manufacturers

Buyers

We can do better!

We wantbetter?

Source: H Nilsson



The process

• Form a group of buyers

• Specification of requirements

• Request for proposal

• Evaluation , testing

• Pick a winner

• Guaranteed delivery

• Dissemination



The specification

• Requirements on functionality only

• Leave space for new innovation

• Balanced level of demands

• Measurable requirements

• Engage experts on edge technology

• Take your time..



The specification..

• Mandatory vs complementary requirements• Main functions of the product• Energy performance• Service • Operational issues• Environmental issues• Price levels• Procedure for evaluation• Issue weighting



Manufacturers

BuyersRFP

Source: H Nilsson



Request for proposal..

• Open tendering process

• Time enough..

• Support for development work, if necessary

• Concrete object for calculation of price

• Optional and credible market description



Evaluation

• An independent and trustworthy jury

• Preliminary classification of proposals

• Prototypes, pilot installations

• Measuring and evaluation

• Eventual subdivision in classes

• Negotiations, options for fixed price etc.



Manufacturers

Buyers

Source: H Nilsson



The winner

• Official price ceremony

• Publicity in media

• Guaranteed delivery to the group of buyers



Delivery, dissemination

• Information campaigns

• Market support activities, subsidies for the first series..

• Set up a new standard for delivery

Get more ”winners”



Examples on heating, vent.

• Regulation of electr heaters

• Heat pumps• Fuel cells• Solar panels• Smart regulation of

heating systems• Apartment substations• Conversion of electr.

Heated houses

• Ventilation regulated on demand

• Filters with low pressure drop

• Heat recovery in small houses

• Hot water accumulators• Windows• Pumps• Fans



Examples on white goods, lighting

• Refrigerators• Freezers• Stoves • Tumble dryers• Washing machines• Dishwashers• Refrigerated

cabinets

• Occupancy sensors• High frequency

ballasts • Efficient light bulbs,

CFL• Streetlighting



Examples from Stockholm sustainable housing projects

• Apartment metering• Integration of PV inst.• Traffic light, LED• IT systems for smart

homes• Low energy water taps • Int. systems for food-

waste and sewage water • Storm water treatment

• Improved technology for waste water treatment

• Biogas vehicles• Ethanol cars • Electric vehicles• Efficient day-care centre• Improved regulation of

heating in apartments• Double glazed facades



Domestic

Fridge+Freezer

90 92 1 kWh/liter and year

0.79 kWh

26 32 61

Central utility room Washing machine

92 94 1.35 kWh/kg of dry washing good

1.2 kWh

- 48 67

Apartments Washing machine

94 96 0.7 kWh/kg of dry washing good

0.6 kWh

50 80 -

Requirement Win

ner

Bes

t

Ave

rag

e

Exi

stin

g

% improvmentResults

Start End



Commercial

HF-Lighting 91 93 Replacing magnetic ballasts

- - 20 30

Ventilation Unit

94 96 SFP 1.5 kW(m3/s)

Complied

- 50 63

Ventilation Filters

95 97 - - - - -

Refrigerated Displays Racks in Foodstores

96 97 2600 kWh/metre run and year

1745 kWh

50 65 -

Win

ner

Bes

t

Ave

rag

e

Exi

stin

g

% improvementResults

Start End Requirement



Detached houses

Windows 93 95 1.0 W/m2, K 1.0 W/m2, K

17 44 -

Heat Pumps 93 95 Saving 8 MWh/year

8.3-9.0 MWh

- - 30[1]

Water Heaters 96 97 Max power loss 70 W

58 W 30 56 60

Detached houses complete

94 95 Maximum use 8 MWh per year for heating and electricity

Complied, 8 entries

43 50 68

[1] The winning heat pump was also 30% cheaper

Win

ner

Bes

t

Ave

rag

e

Exi

stin

g

% improvementResults




Transport & Industry

Traffic Lights (LED)

- - 8W per unit

Factor 10

Complied

87 - -

Electric cars 94 96 0.2 kWh/km and tonne

Complied

- - 67

Factory doors 94 96 18 MWh/year 13 MWh

- 50 -

Win

ner

Bes

t

Ave

rag

e

Exi

stin

g

% improvement

Results




The TP effect

• Innovators (Enthusiasts)• Early Adopters

(Visionaries)• THE CHASMTHE CHASM• Early Majority

(Pragmatists)• Late Majority

(Conservatives)• Laggards (Sceptics)



Experiences of TP• Developed for infrastructure but shown to be

applicable to fragmented markets• Reduction of time to first series (2-3 years)• Considerable “Step changes” in performance• Opens a direct dialogue between buyers and

suppliers• Companies will focus the development to

tracks that leads faster to the market



TP in SA? • Find an operator and a promoter

• Organise buyers groups and stakeholders

• Identify basic unfulfilled needs and options for improvement

• Can job creation and poverty be added?

• Address local suppliers and manufacturers, have tuning discussions



Why not? • Low cost one family houses• Solar thermal kits for domestic hot water• Stoves• Refrigerators, chillers• Simpler washing machines• Cheaper stand alone lighting systems• Public transport systems • …



NYATHI

Delivering solutions Stefan Camitz, Cape Town 2003-11-20 Procurement, a tool for market...

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