Ameren Illinois Energy Efficiency Program Practical Energy Management PEM Overview Workshop DATE 2/25/16
Today’s Agenda • Energy Efficiency in Perspective • Ameren Illinois Energy Efficiency Program • Practical Energy Management • PEM Principles & Tools – A Case Study with Big Time Plastics • Strategic Planning for Program Development
Energy in Perspective Projected Worldwide Consumption OECD 600 Quadrillion 90% BTU Non-OECD 500 5x 400 300 18% 535 200 285 282 242 100 0 2010 2015 2020 2025 2030 2035 2040 OECD (Organization for Economic Cooperation and Development ) Source: EIA International Energy Outlook 2013. Figure 12. Table 1.. Page 9. http://www.eia.gov/forecasts/ieo/pdf/0484(2013).pdf
Energy in Perspective Coal Capacity Additions by Years China v U.S. China – 55GW US – 5GW Source: Slide 16. Tracking New Coal-Fired Power Plants. Erik Shuster. National Energy Technology Laboratory. Office of Strategic Energy Analysis & Planning. Jan 2012. http://www.alrc.doe.gov/coal/refshelf/ncp.pdf
Carbon Accounting
Market Ready? Pepsi Co ? United States United Kingdom
Efficiency as a Resource Energy Consumption by Source Energy Effiency* 57.0 Petroleum 34.6 Natural Gas 26.1 Coal 17.3 Nuclear 8.1 Biomass 4.4 Hydro 2.6 GWS Quadrillion BTUs 1.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Source: U.S. Energy Information Administration. Primary Energy Consumption Estimates by Source, 1949 – 2012. http://www.eia.gov/totalenergy/data/annual/index.cfm#summary *Source: Energy Efficiency: America's Greatest Energy Resource. Alliance to Save Energy. July 2014. https://www.ase.org/resources/energy-efficiency-americas-greatest-energy-resource
What’s the Solution? Better Energy Management
Industrial Energy Use Other Process Use 6% Non-Process Use 11% Process Heat 36% Cogeneration 14% Machine Drive Steam 16% 17% Source: U.S. Department of Energy EIA (2005) 9
Industrial Electricity Use Fans & Blowers 14% Non-motor Use 22% HVAC 2% Pumps 24% DC Drives Other Motors 8% 12% Compressors 12% Machine Tools 6% Source: Federal Energy Management Agency 10
Something To Think About “For every $1 spent on energy efficiency, more than $2 in energy supply costs are avoided” Source: The International Energy Agency www.iea.org 11
Something To Think About Businesses spend on their utility bill? 30% Lighting, cooling and ventilation account for how much electricity use? 60% Space heating encompasses how much natural gas consumption? 80% -E Source, 2010 12
Ameren Illinois Energy Efficiency Program 13
Ameren Illinois Energy Efficiency Program’s Mission Improve energy efficiency in Illinois by supporting customer energy efficiency projects that… … otherwise would not get completed
Ameren Illinois Energy Efficiency Programs Provide cash incentives to help cover a portion of the cost of energy efficiency projects – which in turn helps save money on future utility bills. • Program started in June 2008 • State mandated program – Rate Relief Act (SB 1592 passed in 2007) by Illinois Legislature • Program Year 8 (June 1, 2015 to May 31, 2016) 15
Ameren Illinois Energy Efficiency Achievements Since 2008, Ameren Illinois Energy Efficiency programs have helped thousands of businesses: 16
Ameren Illinois Energy Efficiency Program Available Assistance Technical Assessments Financial Incentives • Energy Advisors available to • Prescriptive Incentives • Feasibility Study assist. • Facility-wide • Staffing Grants • Project-level • CLIP (Competitive Large Incentive Program) • Metering and Monitoring Training & Education • Leak Survey • Webinars and Traditional • Retro-Commissioning • Energy Using Systems • Custom Incentives • Energy Management • ActOnEnergy.com/Education
PEM (Practical Energy Management) 18
Practical Energy Management Characteristics of Effective Programs • A continual improvement strategy compatible with SEM (Strategic Energy Management), Six-Sigma, Lean Mfg, ISO 14001, ISO 50001, etc. • System of savings calculators, organizing tools & management strategies • Integrates management & technical aspects of energy management into existing business practices
Energy Management Continual Improvement Approach Goals Management Planning Motivation • Understand Energy Uses Support Communication • Generate EE Ideas Awareness Performance Tracking • Quantify Opportunities A purely technical focus goes only so far Production • Select Projects • Provide Justification • Gain Approval • Implement Projects to Save $$
Energy Management Characteristics of Effective Programs • Strong leadership & resource allocation • Corporate culture that recognizes value of EE • Sub-metering & internal energy cost allocation • Energy assessment of all capital projects •“On the fly” production adjustments for EE • Clear understanding of impact of energy costs on products produced or services rendered
Energy Management Barriers to Effective Program • Other Priorities (quality, safety, production) • Energy Taken for Granted (“It works…don’t fix it”) • Lack of Data (about energy use and drivers) • Narrowly Focused (“talk to the facilities guy”) • Lack of Awareness (about opportunities & methods) • Insufficient Resources (finances & staff time)
Energy Management Practical Approach … in Theory … in Practice • Management Commitment… …Management Concern • Energy Champion… …Another “Hat” for Someone • Energy Policy… …Nice Words – No Teeth • Energy Team… …Another &*#@ Meeting ! ! • Measure & Monitor… …No Payback on Sub -Meters • Report & Communicate… …Monthly Actual vs. Budget • Set Energy Savings Goal… …Based on What ? • Implement Projects… …No Support
Practical Energy Management 8 Sections • • Management Plan Project Prioritization • • Facility Profile Project Management • • Energy Use Profile Key Indicators • • Best Practices Continual Improvement
Energy Management Plan Based on Results of Gap Analysis
Gap Analysis Tools • U.S. EPA’s Energy Star Program – Provides program and facility level assessments – http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index • U.S. Dept of Energy SEN Leaders Tool – Provides assessment against ISO 50001 (March 2011)
Facility Profile 2006 Key Performance Indicators (Annualized) Energy in Business Context Lbs Resin 408,858 Total Btu’s Electric $ p Lbs Resin $2.76 Natural Electric MMBtu p Lbs Resin 0.180 Gas Gas $ p Lbs Resin $2.53 Gas MMBtu p Lbs Resin 0.339 Tot Energy $ p Lbs Resin $5.29 Water $ p Lbs Resin $0.52 2006 Business Indicators (Annualized) Total Energy Cost $2,164,782 No.2 Oil Operating Costs $15,000,000 Energy as % Oper. Costs 14.43% Total Facility Costs $33,500,000 Energy as % TF Costs 6.46% Annual Profits $3,450,000 Energy as % of Profits 62.75% Electricity Propane % Increase in Profits with 5% 3.14% Reduction in Energy Costs
Best Practices Finding Opportunity Chiller #1 Electrical MMBtu Chiller #2 Chiller #3 Lighting Comp Air Office Other
Best Practices Finding Opportunity Chiller #1 e.g. “Free Cooling” Project Electrical Save 2.5% MMBtu Chiller #2 Chiller #3 Lighting Comp Air Office Other
PEM Best Practices Calc Sheets • • Comfort Heating Process Cooling • • Comfort Cooling Process Heating • • Compressed Air Pumps • • Dehumidification Refrigeration • • Fans Steam/Hot Water • • Hydraulic Vacuum • • Lighting Ventilation • • Motors Wastewater treatment
Project Prioritization List
Project Prioritization List
Energy Efficiency vs. Energy Intensity Efficiency – amount of output per unit of energy Intensity – amount of energy per unit output
Terminology Ene nerg rgy y Perfor ormance mance Indi ndicat ators s (EnPls) – a measure of energy intensity used to gauge effectiveness of your energy management efforts. Basel elini ning - comparing plant or process performance over time, relative to its measured performance in a specific (i.e. baseline) year. Benc nchmar hmarking king - comparing performance to average or established best practice level of performance against an appropriate peer group.
Energy Use Drivers Weather Square feet Production Volume Building occupancy
Simple Regression Model y = mx + b R 2 = correlation coefficient m = energy per variable unit b = base load Variable Load Energy Use Base Load Energy Driver (e.g. Production Volume)
EnPI Example – Data Collection • Select baseline year (e.g. 2008) • 24 months additional data • Ensure data intervals align
EnPI Example – Scatter Diagram • Energy use is dependent variable (y) • Production is independent variable (x) • Relationship appears linear
EnPI Example – Trend Line • Slope (m) 0.3265 • Y-Int (b) 258,591 • R 2 coefficient • 0.8418
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