PEM Overview Workshop DATE 2/25/16 Todays Agenda Energy - - PowerPoint PPT Presentation

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

242 285 282 535

100 200 300 400 500 600 2010 2015 2020 2025 2030 2035 2040

Quadrillion BTU

OECD Non-OECD

5x

18% 90%

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

China v U.S.

US – 5GW China – 55GW

Energy in Perspective

Coal Capacity Additions by Years

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?

United Kingdom United States

Pepsi Co

?

Efficiency as a Resource

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

1.8 2.6 4.4 8.1 17.3 26.1 34.6 57.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 GWS Hydro Biomass Nuclear Coal Natural Gas Petroleum Energy Effiency*

Quadrillion BTUs

Energy Consumption by Source

What’s the Solution?

Better Energy Management

9

Source: U.S. Department of Energy EIA (2005)

Process Heat 36% Steam 17% Machine Drive 16% Cogeneration 14% Non-Process Use 11% Other Process Use 6%

Industrial Energy Use

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Fans & Blowers 14% Pumps 24% Compressors 12% Machine Tools 6% Other Motors 12% DC Drives 8% HVAC 2% Non-motor Use 22%

Industrial Electricity Use

Source: Federal Energy Management Agency

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

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Something To Think About

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Businesses spend on their utility bill? Lighting, cooling and ventilation account for how much electricity use? Space heating encompasses how much natural gas consumption?

• E Source, 2010

30% 60% 80%

Ameren Illinois Energy Efficiency Program

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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)

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Since 2008, Ameren Illinois Energy Efficiency programs have helped thousands of businesses:

Ameren Illinois Energy Efficiency Achievements

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Ameren Illinois Energy Efficiency Program

Available Assistance Technical Assessments

• Energy Advisors available to

assist.

• Facility-wide
• Project-level

Financial Incentives

• Prescriptive Incentives
• Feasibility Study
• Staffing Grants
• CLIP (Competitive Large Incentive Program)
• Metering and Monitoring
• Leak Survey
• Retro-Commissioning
• Custom Incentives

Training & Education

• Webinars and Traditional
• Energy Using Systems
• Energy Management
• ActOnEnergy.com/Education

PEM (Practical Energy Management)

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• Integrates management & technical aspects of energy

management into existing business practices

Practical Energy Management

Characteristics of Effective Programs

• System of savings calculators, organizing tools &

management strategies

• A continual improvement strategy compatible with

SEM(Strategic Energy Management), Six-Sigma, Lean Mfg, ISO 14001, ISO 50001, etc.

Energy Management

• Understand Energy Uses
• Quantify Opportunities
• Select Projects
• Provide Justification
• Gain Approval
• Implement Projects to Save $$
• Generate EE Ideas

Awareness Planning Communication Goals Support Motivation Performance Tracking

A purely technical focus goes only so far

Continual Improvement Approach Production Management

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

• Management Commitment…
• Energy Champion…
• Energy Policy…
• Energy Team…
• Measure & Monitor…
• Report & Communicate…
• Set Energy Savings Goal…
• Implement Projects…

…in Practice …Management Concern …Another “Hat” for Someone …Nice Words – No Teeth …Another &*#@ Meeting ! ! …No Payback on Sub-Meters …Monthly Actual vs. Budget …Based on What ? …No Support

Practical Energy Management

8 Sections

• Management Plan
• Facility Profile
• Energy Use Profile
• Best Practices
• Project Prioritization
• Project Management
• Key Indicators
• Continual Improvement

Based on Results of Gap Analysis

Energy Management Plan

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

Energy in Business Context

Electricity

Propane

Natural Gas No.2 Oil

Total Btu’s

3.14% % Increase in Profits with 5% Reduction in Energy Costs 62.75% Energy as % of Profits $3,450,000 Annual Profits 6.46% Energy as % TF Costs $33,500,000 Total Facility Costs 14.43% Energy as % Oper. Costs $15,000,000 Operating Costs $2,164,782 Total Energy Cost (Annualized) 2006 Business Indicators $0.52 Water $ p Lbs Resin $5.29 Tot Energy $ p Lbs Resin 0.339 Gas MMBtu p Lbs Resin $2.53 Gas $ p Lbs Resin 0.180 Electric MMBtu p Lbs Resin $2.76 Electric $ p Lbs Resin 408,858 Lbs Resin (Annualized) 2006 Key Performance Indicators

Best Practices

Finding Opportunity

Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Electrical MMBtu

Best Practices

Finding Opportunity e.g. “Free Cooling” Project Save 2.5%

Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Electrical MMBtu

PEM Best Practices Calc Sheets

• Comfort Heating
• Comfort Cooling
• Compressed Air
• Dehumidification
• Fans
• Hydraulic
• Lighting
• Motors
• Process Cooling
• Process Heating
• Pumps
• Refrigeration
• Steam/Hot Water
• Vacuum
• Ventilation
• 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

• rmance

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

Production Volume Weather Building occupancy Square feet

Simple Regression Model

Base Load Variable Load Energy Driver (e.g. Production Volume) Energy Use y = mx + b m = energy per variable unit b = base load R2 = correlation coefficient

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
• R2 coefficient
• 0.8418

EnPI Example – Interpreting the Results

• Slope (m) - every Lb of extruded material requires 0.3265 kWh of

electrical energy (Energy Intensity)

• Y-intercept (b) – monthly electrical energy consumption unrelated to

production is 258,591 kWh

• R2 coefficient – approximately 84% of the variation in monthly

electrical energy consumption is explained by regression equation (i.e. “m” and “b”)

EnPI Example – Baselining Performance

• Goal: improve energy performance by 10% in 2 years

Year Variabl ble kWh Base e loa

• ad kW

kWh 2008 (Year 0) 0.3677 227,483 2009 (Year 1) 0.2524 323,603 2010 (Year 2) 0.2830 294,009 3-Year Value 0.3265 258,591 2-Year change Better by 30% Worse by 30%

Curious results needing investigation

EnPI Example – Applying the Results

For 2012, management forecasts a 15% increase in production over the 2010 volume of 10,200,000 lbs. What is the expected monthly electrical cost?

• 10,200,000 + 15% = 11,730,000 ÷ 12 = 977,500 lb per month
• (0.3265 kWh/Lb x 977,500 Lb) + 258,748 kWh = 577,902
• At $0.075 per kWh x 577,902 kWh = $43,343

What is electricity cost embedded in each extruded Lb?

• $43,343 ÷ 977,500 = 4.4¢

EnPI Example – Reporting the Results

• EnPIs, as indicators of performance, should be at the core of

your communication efforts.

• Communicating energy efforts and performance is vital for

generating awareness, responsibility & action

• Effective energy management involves changing organizational

culture and individual mindsets

Complicating Factors

( Indicated by Lower R2 ~<0.75 )

• More than one consumption driver of an energy source

– e.g. weather and production for natural gas

• Multiple or changing product mixture

– e.g. Output of one product dependent on another

• Production output not easily characterized

– Consider either product count, weight or volume – Look at production inputs (i.e. raw materials) instead of

• utputs
• Major system upgrades or change in operations

– Evaluate if baseline year EnPI values are still suitable

Practical Energy Management

Project Prioritization List

quantify, track and report on energy saving opportunities

Energy Management plan

turn gap analysis into specific actions for improvement

Senior Management

change concern to commitment

Effective energy team

It all starts here

Energy Teams

Characteristics of The Most Effective

• Leader usually has personal convictions about environment and

energy efficiency

• Develop clear action plans that are regularly updated
• Address both technical and management aspects of energy
• Act as opportunities arise
• Measure existing conditions & impact of change
• Engage other employees as needed
• Have effective meetings

Energy Team Meeting Minutes

Tools for Real Time Meetings

PEM Keys to Success

• Senior Management Concern  Commitment
• Recognize reality’s limitations (time & money)
• Efficient meetings make for Effective Teams
• Track & Communicate re: Energy Activities
• Maintain perspective on energy efficiency

Energy Efficiency in Perspective

Global Issues The Bottom Line The Solution

Homework

• Energy is what percent of your operating costs ?
• How do you allocate energy costs internally ?
• Do you assess energy impacts of capital projects ?
• Has your company established an energy goal ?
• Do you have an energy team; is it effective ?
• What is the savings from identified projects ?
• Develop a EnPI for your company

Contact Information

Ron Ingram, Industrial Energy Advisor Ameren Illinois Energy Efficiency Program Office: 309-677-7950 Cell: 309-213-5585 Email: ronald.w.ingram@leidos.com

www.ActOnEnergy.com