03 January 2005
Energy Management Services (EMS), the leading Energy Management and Energy Conservation Company in the Middle East, have called upon UAE manufacturing industries to optimize positive cash flow through energy savings projects.
According to Khaled Bushnaq, Managing Director, Energy Management Services, "With the manufacturing sector growing manifold in the UAE, the demand for energy (electricity, water and gas) has gone up tremendously. While energy cost in industry varies, but the fact remains that this expenditure can be reduced to the tune of 8 to 35 per cent of the monthly bill, resulting in increased positive cash flow into the profit savings account."
In an illustration of Bushnaq's assertion, an EMS project has generated recurring annual savings of over AED 1,700,000 (over US$ 462,862) for Ras Al Khaimah (RAK) Ceramics. The project was initiated in June 2003, with a project management contract for 1 year after completion of installation. Under the terms of the agreement, RAK ceramics recovered all investment from the savings generated at the end of 2.5 years. As a result of the project, energy savings for electrical applications, including lighting, power and other load generated annual saving of over AED 1,700000 (over US$ 462,862). The savings were measured by providing sample installations and monitoring results for few months prior to going ahead with full implementation of the project.
"RAK Ceramics' commitment to Energy Saving is an articulate decision based on both commercial profit and the responsibility entailed in our position as an industry leader in the UAE markets. Before investing in the project on energy management, we had done extensive research to identify the very real potential of increased cash flow by saving on hidden wastage of energy in various manufacturing processes," states Dr. Khater Massaad, Chief Executive Officer, RAK Ceramics. "The actual implementation of the solution exceeded our expectations on the savings made. I would confidently recommend Energy Management not just for the improved profitability generated, but also in the interest of the UAE's energy resources."
"While most managers are aware of the possibility of saving on energy expenditure, they are usually daunted by the complexity of financing such a project through independent financing bodies such as banks or financial institutions," explains Bushnaq. "Performance Contracting offers the ideal solution. Under the terms of such an agreement, the client company is obligated to pay a percentage of the generated savings as pay back for equipment, installation and management for the project. The residual savings reflect immediately as smaller energy bills in the company's balance sheet."
"Since the introduction of the Performance Contracting option in 1996, EMS has registered a gradual increase in awareness levels about energy management in the manufacturing sector. We have now entered a phase where potential clients actively seek this option for implementing large scale EMS projects. In an encouraging development such agreements are being sought not just for retrofit energy management projects, but also for projects including consultancy at the design stage of a facility," adds Bushnaq.
The company, which has a 10-year history of retrofit energy management projects in the country, has developed a unique financing solution based on Performance Contracting (Shared Savings), allowing clients to implement energy management solutions without making any initial investment. The company has recently announced the half yearly savings results for its projects in 2004 and is targeting the manufacturing sector as an important high growth sector in terms of energy savings in the year 2005.
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Energy Management Services (EMS), the leading Energy Management and Energy Conservation Company in the Middle East, have called upon UAE manufacturing industries to optimize positive cash flow through energy savings projects.
According to Khaled Bushnaq, Managing Director, Energy Management Services, "With the manufacturing sector growing manifold in the UAE, the demand for energy (electricity, water and gas) has gone up tremendously. While energy cost in industry varies, but the fact remains that this expenditure can be reduced to the tune of 8 to 35 per cent of the monthly bill, resulting in increased positive cash flow into the profit savings account."
In an illustration of Bushnaq's assertion, an EMS project has generated recurring annual savings of over AED 1,700,000 (over US$ 462,862) for Ras Al Khaimah (RAK) Ceramics. The project was initiated in June 2003, with a project management contract for 1 year after completion of installation. Under the terms of the agreement, RAK ceramics recovered all investment from the savings generated at the end of 2.5 years. As a result of the project, energy savings for electrical applications, including lighting, power and other load generated annual saving of over AED 1,700000 (over US$ 462,862). The savings were measured by providing sample installations and monitoring results for few months prior to going ahead with full implementation of the project.
"RAK Ceramics' commitment to Energy Saving is an articulate decision based on both commercial profit and the responsibility entailed in our position as an industry leader in the UAE markets. Before investing in the project on energy management, we had done extensive research to identify the very real potential of increased cash flow by saving on hidden wastage of energy in various manufacturing processes," states Dr. Khater Massaad, Chief Executive Officer, RAK Ceramics. "The actual implementation of the solution exceeded our expectations on the savings made. I would confidently recommend Energy Management not just for the improved profitability generated, but also in the interest of the UAE's energy resources."
"While most managers are aware of the possibility of saving on energy expenditure, they are usually daunted by the complexity of financing such a project through independent financing bodies such as banks or financial institutions," explains Bushnaq. "Performance Contracting offers the ideal solution. Under the terms of such an agreement, the client company is obligated to pay a percentage of the generated savings as pay back for equipment, installation and management for the project. The residual savings reflect immediately as smaller energy bills in the company's balance sheet."
"Since the introduction of the Performance Contracting option in 1996, EMS has registered a gradual increase in awareness levels about energy management in the manufacturing sector. We have now entered a phase where potential clients actively seek this option for implementing large scale EMS projects. In an encouraging development such agreements are being sought not just for retrofit energy management projects, but also for projects including consultancy at the design stage of a facility," adds Bushnaq.
The company, which has a 10-year history of retrofit energy management projects in the country, has developed a unique financing solution based on Performance Contracting (Shared Savings), allowing clients to implement energy management solutions without making any initial investment. The company has recently announced the half yearly savings results for its projects in 2004 and is targeting the manufacturing sector as an important high growth sector in terms of energy savings in the year 2005.
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© Press Release 2005
