How to afford sustainable energy in an ecologically sensitive area.

THE CASE FOR

COURAN COVE
ECO-TOURISM RESORT
SOUTH STRADBROKE ISLAND

Clever use of energy does more than save the environment. It saves dollars as well.
It is estimated that the Advanced Energy System designed by Integrated Energy
Services at Couran Cove saved the resort owners around $2.5 million in up front
capital costs. And that's not counting the $1 million a year saved in operating
costs.

Make no mistake, Couran Cove is very definitely a 5-star resort, offering all the
luxuries of a Resort lifestyle. But, thanks to the innovations suggested by us, it's
done without compromising the integrity of the local environment. Such dramatic
savings are possible – a predicted 70% less energy use than that used by similar all-
electric resorts - because a holistic approach was taken. The result is totally
integrated and utilises a state-of-the-art computerised energy management system.
In fact, the Advanced Energy System we've installed at Couran Cove will serve as a
model for sustainable development in 5-star eco-tourism resorts, around the world.

Ecotourism at its best.

South Stradbroke Island, which is where Couran Cove is situated, is just 15 minutes
from the Gold Coast. Apart from 5-star luxury, visitors would be drawn there by the
abundant plant and animal life. The Resort is scattered through the rare combination
of eco-sensitive rainforest, pristine beachfront and open woodland. Into this high
conservation value area Interpacific Resorts (Australia) Pty Ltd, Couran Cove Resort
developers, put a 567 unit development, consisting of
 marine apartments,
 beachfront villas and lodges
 forest eco-cabins.
 A conference centre, including an auditorium which seats 200.
 Indoor and outdoor restaurants.
 An entertainment area, including a heated 25 metre lap pool, massage huts
 and children's playgrounds.
 An environmental, interpretive and research centre.
 A surf club with café facilities.
 A sports compound, including tennis and squash courts as well as a running
track.

Integrated Energy Service's role was to evaluate, design, document, project manage
the Resort's energy services and then, finally, test it all to ensure it was up and
running smoothly. Our brief was to provide a cost-effective and reliable power supply
- without degrading the local environment or losing any of the natural qualities which
attracts visitors to the Resort. Connection to the electricity grid or reliance on diesel
generators fell far short of these criteria.

/conversion/tmp/activity_task_scratch/659352644.doc 1
Sustainable energy that keeps the environment at its best. Many of the problems
associated with the more traditional supply solutions were overcome by using low
impact technologies, clever design and energy saving practises. For example, 25%
of the Resort's power is set to be supplied by two wind generators. The first is a
2.5kW one, the second a huge 225kW, which would make it the largest privately
operated wind generator in Queensland and the second largest in Australia. A clean
gas-fired power station and solar, gas and other energy efficient appliances help a
great deal more.

Even more savings are achieved through a centrally monitored computerised control
system. The system acts as a link between power station operations and the
Resort's users, scheduling and monitoring all energy and water usage.

The power of careful planning.

In order to facilitate a complex and environmentally sensitive job like Couran Cove,
we relied heavily on one of the things that gives Integrated Energy Services its
competitive advantage. Our computer modelling tools. They enable us to analyse
energy service options from three distinct perspectives. Technical capability,
economic return and environmental impact.

Computer modelling allowed us to be exact about Couran Cove's needs. And

because there's no guesswork involved, we know exactly how much everything will
cost. Down to the last dollar, and before the fact. The final objective was, as it
always is, to reduce energy usage without compromising service levels. In fact, the
low impact strategies and technologies that were introduced at Couran Cove as a
result of our unique tools, dramatically reduced the cumulative effects of everything
else.

A model case.

We first applied our computer modeling to electrical end use equipment options. For
example water heaters, lights, water pumps and so on. This enabled us to determine
the technologies which would provide Couran Cove with the service that demanded
the least energy.

Due to our experience in the field, we were then able to reduce energy usage and
optimise service levels in other ways as well. For example, the energy management
control system. Once that was determined, we turned once again to our computer
modeling tools. Using the energy demand established from the first model, we were
able to run models on alternative power supply options. And the way we determined
suitability was to look at the most cost-effective configuration of generation
technologies over their life cycle. Which brings us to yet another point of difference
between Integrated Energy Services and our competitors. Unlike most engineering
companies, we do more than take up front capital costs into account. We also
consider operational and maintenance costs.

After exhaustive analysis we are able to pinpoint the most cost effective combination
of technologies. And set them in motion.

/conversion/tmp/activity_task_scratch/659352644.doc 2
The secret is in the integration.

No, there isn't anything earth-shatteringly new in our solutions. The key to our
success is not the technologies themselves, but how we've balanced and integrated
them. Usually off-grid power sources are oversized, and over-designed, which means
the resorts that use them are locked into high operation and maintenance costs.
Thanks to careful planning and integration, this is not the case at Couran Cove.
Generators are carefully sized to match both the seasonal variations and varying
daily usage patterns. This means that peaks are reduced. Which, in turn, reduces
the level of generation capacity required. One of the ways we've achieved this was
to schedule services that can be carried out intermittently, for example irrigation, for
times of low energy demand. Another way to flatten peaks was to control air
conditioner cycles via the energy management control system In fact, it was only
because of our extremely careful planning and research – even down to an appliance
by appliance power analysis to find the most efficient ones on the market – that we
were able to optimise performances and efficiencies.

The effect has been staggering. Power consumption has been slashed to a third of
that of similar sized resorts. Greenhouse gases are, as a result, down by 70%.
Perhaps the most important point, however, is that it proves that development and
conservation can go hand in hand. And still be cost effective.

Here are some examples:

 Hot water in the Resort's 300 eco-cabins comes from gas-boosted solar water
heaters.
 Passive solar design was used throughout the Resort. This included natural
lighting and careful building orientation wherever possible.
 Ceiling and wall insulation, as well as shading devices also minimise heat gain.
 Super-energy efficient lights and lighting control systems are used throughout the
Resort. For example, street lights are operated by electronic ballasts and public
areas like toilets and walkways are only lit when occupied.
 Few resorts use gas as their prime energy source. However, at Couran Cove
gas water and power are all reticulated right across the resort.
 Water and rooms are all heated by gas appliances.
 Only gas is used for cooking. And that goes for the stoves in the cabins, as well
as the dishwashers, urns, food warmers and cappuccino machines in the
commercial kitchens.

Thanks to water efficient appliances, in excess of 2Ml of water, per annum, is saved
in the Resort's kitchen alone. Electronic control and scheduling of the Resort's
energy services, whether it be for pumping, treatment, supply or disposal. The use of
heat recovery from the gas generators to heat the pool.

Super-efficient motors to drive air-conditioning, refrigeration and so on – which are

typically the largest drawers of power. Electronic speed control of major motor loads,
which realises energy savings of up to 60% on traditional control systems. These
controls are placed on water, waste and sewage treatment as well as the hot water
supply to the pool.

/conversion/tmp/activity_task_scratch/659352644.doc 3
A control system that controls costs.

All that aside, this carefully planned integration of systems, techniques and
appliances still needs to be optimised by a computerised control and management
system. The unique system installed by Integrated Energy Services supervises
everything, decentralising control across the Resort. This includes the gas-fired
power station. Both wind generators. The scheduling and monitoring of individual
appliances. And the allocation of energy usage at any given time. This alone allows
for a power saving of 66% – as compared to any other all-electric resort of a similar
size.

Keeping them in the know.

The system Integrated Energy Services installed at Couran Cove Resort was
designed to do more than reduce capital and operating costs – significantly –
minimise power wastage and use local energy resource without pollution. Another
advantage of our centralised management system is the ability to meter all resource
flows from supply to final use. The system is also set up to monitor the energy usage
from each individual guest unit. How much power toasters, refrigerators, air
conditioners, even hairdryers use is measurable. The television set, in all units,
allows visitor's constant, and instant, access to their consumption levels of power,
gas and water. In this way, Couran Cove management can set eco-energy and
water targets and allow guests to set their own level of usage. This opens up a
whole new ballgame in guest tariffs and rewards.

A few important points.

There are many things that make the system that we've installed at Couran Cove
truly remarkable. In summary, we've tried to pick out a few of the most important
ones.

Unlike most 5-star resorts, the energy requirement for Couran Cove's 567 units is
supplied by their own, low maintenance power supply, which is totally based on gas
and wind generators.

Few developments have the technology to monitor – and control – their energy and
water usage. Even fewer, if any, are able to encourage their guests to monitor their
own energy, water and gas usage. Thanks to Couran Cove's state-of-the-art system
Resort Management are able to do both.

The energy system installed by Integrated Energy Services is living proof that
development need not be compromised in order to be sustainable. Conservation and
first class facilities can go hand in hand, if done carefully and properly.

The Couran Cove development serves as a global model for cost-effective energy
services in environmentally sensitive or off-grid developments. In the past, many
developers have not pursued choice opportunities as the costs of establishing and
maintaining an efficient, effective energy system were too high. As Couran Cove
only too clearly shows, that is not the case at all.

If you would like to find out how Integrated Energy Services can reduce the cost of
supplying the energy for your development, please call Frank Barram on (07) 3356
3848.

/conversion/tmp/activity_task_scratch/659352644.doc 4