SUSTAINABLE ENERGY SUPPORT FOR BUILT ENVIRONMENT PROJECTS REVIEW OF SUSTAINABLE ENERGY OPPORTUNITIES IN THE HOTEL SECTOR OF EGYPT (RED SEA AND SINAI REGION) FINAL REPORT Prepared for: Prepared by: AF-MERCADOS EMI (SPAIN) September 2013 AF-MERCADOS EMI REVIEW OF SUSTAINABLE ENERGY OPPORTUNITIES IN THE HOTEL SECTOR OF EGYPT (RED SEA AND SINAI REGION) FINAL REPORT TABLE OF CONTENTS ACKNOWLEDGEMENTS .............................................................................. ERROR! BOOKMARK NOT DEFINED. 1 EXECUTIVE SUMMARY ............................................................................................................................ 5 2 INTRODUCTION ......................................................................................................................................... 13 3 BACKGROUND CONSIDERATIONS FOR INVESTMENT .................................................... 18 4 MARKET SURVEY ...................................................................................................................................... 25 5 WALK THROUGH AUDITS ................................................................................................................... 30 6 TECHNICAL AND MARKET POTENTIAL ...................................................................................... 60 7 MAIN FINDINGS AND RECOMMENDATIONS.......................................................................... 67 8 ANNEX A: ENERGY PRICES ............................................................................................................... 71 9 ANNEX B: LIST OF RESORTS THAT PARTICIPATE IN THE SURVEY ...................... 72 10 ANNEX C: MARKET SURVEY .............................................................................................................. 74 11 ANNEX D: KPIS PER SQUARED METER ..................................................................................... 83 12 ANNEX E: CONCENTRATED SOLAR POWER ........................................................................... 95 SUSTAINABLE ENERGY OPPORTUNITIES AT THE HOTEL SECTOR IN EGYPT – DRAFT FINAL REPORT 2 AF-MERCADOS EMI TABLE OF EXHIBITS Exhibit 1- Cost per guest night in the different resorts ............................................................................................................... 7 Exhibit 2- List of the energy conservation measures and simple paybacks ................................................................. 7 Exhibit 3- WTAs resume (CHP results not included) ...................................................................................................................... 8 Exhibit 4- CHP resume ......................................................................................................................................................................................... 8 Exhibit 5- Technical market: Number and percentage of hotels per prototype segment ................................... 9 Exhibit 6- Market Barriers and way to overcome ............................................................................................................................. 9 Exhibit 7- Number of projects and associated investment in detail ................................................................................. 10 Exhibit 8- Average number of projects and associated investment ................................................................................. 11 Exhibit 9- Red Sea and Sinai distribution per hotels category ............................................................................................. 14 Exhibit 10- Red Sea and Sinai hotels distribution per room number............................................................................... 14 Exhibit 11- Distribution per category according to the room capacity at the Sinai .............................................. 15 Exhibit 12- 4* segmentation per number of rooms at Sinai .................................................................................................. 15 Exhibit 13- 5* segmentation per number of rooms at Sinai .................................................................................................. 15 Exhibit 14- Distribution per category according to the room capacity at the Red Sea ....................................... 16 Exhibit 15- 4* segmentation per number of rooms at Red Sea .......................................................................................... 16 Exhibit 16- 5* segmentation per number of rooms at Red Sea .......................................................................................... 17 Exhibit 17- Air temperatures (ºC) in Sharm El Sheikh .............................................................................................................. 17 Exhibit 18- Approximate Amount of Egypt’s Energy Subsidies in FY 2009/2010 ................................................... 19 Exhibit 19- Responses per hotel category ........................................................................................................................................... 25 Exhibit 20- Position of the surveyed ........................................................................................................................................................ 25 Exhibit 21- Distribution of answer per guest rooms..................................................................................................................... 26 Exhibit 22- Refurbishment Classification .............................................................................................................................................. 26 Exhibit 23- Opening year of the resort .................................................................................................................................................. 26 Exhibit 24- Energy costs over sales ......................................................................................................................................................... 27 Exhibit 25- Age of the hot water facilities ............................................................................... Error! Bookmark not defined. Exhibit 26- Age of the cooling facilities ..................................................................................... Error! Bookmark not defined. Exhibit 27- Distribution of the fuel use to produce hot water ............................................................................................... 28 Exhibit 28- interest for the application of conservation measures .................................................................................... 28 Exhibit 29- Interest for technological investments ....................................................................................................................... 29 Exhibit 30- Simple payback as a decision factor ............................................................................................................................ 29 Exhibit 31- Perception for Energy Service Companies ............................................................................................................... 29 Exhibit 32- Location of the visited resorts for WTAs .................................................................................................................... 30 Exhibit 33- General data of the visited hotels .................................................................................................................................. 31 Exhibit 34- Room occupancy evolution ................................................................................................................................................ 32 Exhibit 35- Average room occupancy ..................................................................................................................................................... 33 Exhibit 36- Average guest nights per resort ...................................................................................................................................... 33 Exhibit 37- Resume of the consumption and cost baselines for selected resorts ................................................... 35 Exhibit 38- Energy cost (EGP) per resort ............................................................................................................................................. 36 Exhibit 39- Energy and water breakdowns in four representative hotels..................................................................... 37 Exhibit 40- Electrical, diesel and water Key Performance Indicator ................................................................................. 38 Exhibit 41- Cost per guest night in the different resorts .......................................................................................................... 39 Exhibit 42- Cost per guest night in the different resorts .......................................................................................................... 39 Exhibit 43- Areas of Energy Efficiency ................................................................................................................................................... 40 Exhibit 44- List of the energy conservation measures ............................................................................................................... 40 Exhibit 45- Typical monthly electrical consumption of a resort in Sinai and Red Sea (kWh) ........................ 41 Exhibit 46- Coefficient of Performance of the cooling systems ...........................................................................................