cpmplus Energy Manager

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1 Jouko Karjalainen, cpmplus Energy Manager February 1, 2013 Slide 1

2 Why is Energy Management essential? World electricity generation by fuel, trillion kilowatthours Nuclear Renewables Natural gas Coal Liquids Derived from EIA, International Energy Statistics database (as of November 2009), web site Projections: EIA, World Energy Projection System Plus (2010). Focus in sustainable manufacturing Energy is a major production cost item in many process industries (1) In pulp & paper industry approximately 10% of production cost In mining industry 15% In cement industry 30 % In steel industry even 50% Experience shows that Energy savings up from 10% to 25% can be reached by various actions (2) February 1, 2013 Slide 2 (1) Based on geographical area (2) Source: ARC Best Practices for Energy Management report, Jan. 2009

3 Implementation of Energy Management Strategy Strategy, Policy and Targets A successful Energy Management strategy must be initiated and supported from the top down Targeted Initiatives Progress & Results February 1, 2013 Slide 3

4 Market Analysis

Report Analyze Alarm Forecast Optimize Monitoring energy usage at Plant and Process level with real-time visual displays

process areas and production lines Analyze inefficiencies in Plant and process areas Alarm capabilities - enable corrective

5 What is cpmplus Energy Manager? A software package for Large energy consumers in all industries A software package that allows you to: Monitor Identify Report Analyze Alarm Forecast Optimize Monitoring energy usage at Plant and Process level with real-time visual displays and data Identifybest performance of process areas and opportunities for improvement Report energy consumption patterns of process areas and production lines Analyze inefficiencies in Plant and process areas Alarm capabilities - enable corrective measures to be taken immediately Forecast energy consumption schedules for process areas based on production plans Optimization environment to design and implement complete energy optimization models February 1, 2013 Slide 5

6 cpmplus Energy Manager is a Modular Package Easy and seamless scalability from Modules Energy Monitoring and Targeting Start with monitoring and reporting against targets Energy Demand Planning and What-if scenarios Energy demand planning and sensitivity analysis Energy Optimization Comprehensive optimization of energy demand and supply cpmplus History Database cpmplus Clients User interface 800xA Integration OPC Integration Prod Plan Integration February 1, 2013 Slide 6 Module1 = Energy Monitoring and Targeting decreasing energy consumption Module 2 = Energy Demand Planning reducing energy purchase costs Module 3 = Energy Optimization optimizing energy mix and time of use

7 Monitoring & Targeting (Module 1) Functionality Monitor, Target and Report measured energy consumption Monitoring energy efficiency and energy costs Power Monitoring Understanding operation at Plant and Process level Identify best performance of process areas from past history to set targets for energy consumption Monitor peak load, power consumption and actual consumption v targets Analysis and Reporting Analyze and Report energy consumption patterns of process areas and production lines Alarms to alert operators to take action Alarm capabilities with several alarm types, e.g., deviation from target, equipment running idle, high limit etc. February 1, 2013 Slide 7

Highlight improvement areas allowing corrective action 3.

8 Monitoring & Targeting (Module 1) Benefits 1. Accurate Performance Monitoring Plant level and Process level 2. Highlight improvement areas allowing corrective action 3. Improve energy efficiency and energy consumption 4. Increase profitability by 10-15% February 1, 2013 Slide 8

Main Dashboard - Plant Overview Actual current energy performance v target values Title of the display Trend display for the indicator KPI including target Baseline, Current value and Target for the

9 Main Dashboard - Plant Overview Actual current energy performance v target values Title of the display Trend display for the indicator KPI including target Baseline, Current value and Target for the selected time level D Navigation matrix: Columns represent different type of displays to be activated. Rows represent process areas. The selection is shown by highlighting. Color of the traffic light next to process area indicates deviation from the target. Navigation within the process hierarchy is possible. February 1, 2013 Slide 9

electricity plans reduce demand charges and lower penalties Improvement of 10% in

10 Monitoring & Targeting (Module 1) Sub-process analysis The key is to be able to accurately predict the electricity consumption based on real time data Accurate electricity plans reduce demand charges and lower penalties Improvement of 10% in electricity plan accuracy results in 1% savings in electricity costs February 1, 2013 Slide 10

11 Monitoring & Targeting (Module 1) Display template hierarchy Main overview Allows drill-down to Process area for specific details, e.g, Energy efficiency Targets, Settings Analysis and Reports Energy efficiency trend Subprocess overview Energy overview Target setting Report Analysis February 1, 2013 Slide 11

Monitoring & Targeting (Module 1) - Energy Overview You can select whether you want to display Energies, Costs, CO2 or SEC Time level selection. You can select the time level and navigate.

12 Monitoring & Targeting (Module 1) - Energy Overview You can select whether you want to display Energies, Costs, CO2 or SEC Time level selection. You can select the time level and navigate. In this example one WEEK is selected You can select which energy form you want to display, or Total Trend selection: Periodic shows periodical values. Cumulative shows sum from the beginning of the time selection This graph shows the selected year and previous year values for Energy, Costs, CO2 or SEC (depending on what is selected above) The losses are shown here divided into two parts: operational losses and partial load losses. February 1, 2013 Slide 12

13 Monitoring & Targeting (Module 1) - Analysis February 1, 2013 Slide 13

within the Plant Empower Plant operators to take corrective action based on

14 Monitoring & Targeting (Module 1) - Summary Accurately Monitor & Target the Plant s overall operations in real-time Identify the inefficient operational areas within the Plant Empower Plant operators to take corrective action based on high-grade data Maximize operational efficiency Increase Profitability February 1, 2013 Slide 14

cpmplus Energy Manager Energy Load Planning (Module 2) Calculation of predicted energy consumption patterns for each consumer Accumulation of consumer specific consumption patterns into total

h Measured con sum ptio n: 92MW Day-ahead 100MW 40$/MW h Average price: 40.

15 cpmplus Energy Manager Energy Load Planning (Module 2) Calculation of predicted energy consumption patterns for each consumer Accumulation of consumer specific consumption patterns into total facility consumption AB B G roup A pril 27, 2010 Slide 12 February 1, 2013 Slide 15 Example: Benefits of Accurate Planning & Monitoring C as e 1 Power [MW ] Surplus power to the grid operator: 30$/MW h Measured con sum ptio n: 92MW Day-ahead 100MW 40$/MW h Average price: 40.87$/M W h D efic it pow er from the grid operator: 5 0$/MW h C as e 2 Power [MW ] Measured con sum ptio n: 108MW Average price: 40.74$/MWh Ideal Situation Power [M W] Surplus p o w er to t he g rid operator: 30 $/M W h Ave rage price: 40.10$/MW h M ea sured co nsum p tion: 99MW Can predict up to 5 separate utilities per consumer, e.g. consumption of electric power, steam, gas, water, oil Prediction methods include production type dependent profiles, production cycle dependent profiles, time dependent profiles, self-adaptive profiles, and constant loads Standard interface to Production Planning systems

16 Load Forecasting (Module 2) Minimizing Electricity Purchase Costs Case 1 Power [MW] Surplus power to the grid operator: 30$/MWh Annual savings Measured ~ $ Measured consumption: = 2% of total electricity consumption: costs 92MW 108MW Day-ahead 100MW 40$/MWh Deficit power from the grid operator: 50$/MWh Case 2 Power [MW] Ideal Situation Power [MW] Surplus power to the grid operator: 30$/MWh Measured consumption: 99MW Average price: 40.87$/MWh Average price: 40.74$/MWh Average price: 40.10$/MWh February 1, 2013 Slide 16

Energy Supply Planning and Optimization (Module 3) Optimize the schedule of available supply resources to meet planned energy consumption - at minimum

utilizes a real-time LP/MIP optimization environment and Economic Flow Network Energy process is divided into logical sub-processes, which are connected

17 Energy Supply Planning and Optimization (Module 3) Optimize the schedule of available supply resources to meet planned energy consumption - at minimum total cost - in real-time Optimization of running schedules for selected consumers based on minimum energy cost and given restrictions Optimization utilizes a real-time LP/MIP optimization environment and Economic Flow Network Energy process is divided into logical sub-processes, which are connected to each other through a flow network Optimizes the complete energy flow network in real-time when any of the input parameters change February 1, 2013 Slide 17

Energy Supply Planning and Optimization (Module 3) Planning Electricity Use and Generation is Essential Motivation Scheduling and optimization of power generation capacity Benefits for Power

18 Energy Supply Planning and Optimization (Module 3) Planning Electricity Use and Generation is Essential Motivation Scheduling and optimization of power generation capacity Benefits for Power Companies: More stable power grid Less spinning and fast reserves Regulating less expensive Less CO2 emissions Operating on optimal efficiency Benefits for Consumers: More stable power grid Unit price of electricity is lower Less penalties February 1, 2013 Slide 18 Improved energy efficiency

19 cpmplus Energy Manager Summary A software package that allows you to: Establish targets for energy usage Monitor and report energy usage and efficiency against targets Predict energy demand based on production data Balance energy usage against purchased energy commitment Optimize energy usage, production and procurement Benefits Improve energy efficiency, reduce energy costs and carbon footprint Purchase or produce your energy at the lowest market price Optimize the use of alternative energy sources Improve energy cost consciousness Support energy improvement projects February 1, 2013 Slide 19 cpmplus Energy Manager is winner of the 2010 Control Engineering Engineers Choice Award for best software package in the Energy Dashboard category

Return On Investment Case - Steel Mill Price Consumption MW price MWh savings savings Annual use,h Total savings - year 1 40 1% 1% 8000 6400 10 40 1% 1% 8000 64000 100 40 1% 1% 8000 640000 Price and

20 Return On Investment Case - Steel Mill Price Consumption MW price MWh savings savings Annual use,h Total savings - year % 1% % 1% % 1% Price and Consumption savings here are 1% each - can be up to 5 %. Many Steel Mills use more than 100 MW Price Savings = accurate forecasting / avoiding peaks + penalties Consumption savings = accurate monitoring of where and how much electricity is consumed / load planning and optimization February 1, 2013 Slide 20

21 cpmplus Energy Manager reference systems Mill wide and corporate wide installations Proven solution with references in Pulp & paper mills, board mills Steel mills Mining sites Power utilities Oil refinery Water processing site Proven corporate wide installations UPM-Kymmene Mayr-Melnholf Public Works and Government Services Canada February 1, 2013 Slide 21

UPM Corporate wide Energy Management Corporate-wide energy management network UPM-Kymmene is the third biggest forest industry company in the world, and the leading manufacturer of magazine papers.

22 UPM Corporate wide Energy Management Corporate-wide energy management network UPM-Kymmene is the third biggest forest industry company in the world, and the leading manufacturer of magazine papers. Reductions in carbon dioxide and sulphur dioxide emissions 20 TWh/y total electric energy procurement 17 Mill systems and two corporate centers Energy procurement and production planning, real-time monitoring and reporting on mill and corporate level February 1, 2013 Slide 22

23 PVO-Pool, Finland Energy management for PVO Power Utility Operating a 3.4GW power portfolio including 21 thermal power plants 2 nuclear units 12 hydro stations 5 wind power stations ABB Process Industries - 23 February 1, 2013 Slide 23 Approximately 25% of total electricity production in Finland Pohjolan Voima (PVO) is a privately owned group of companies in the energy sector, which produces electricity and heat at cost for its shareholders in Finland. The Group also develops and maintains technology and services in its sector. PVO-Pool Oy, a subsidiary of Pohjolan Voima Oy, is responsible for the optimal power procurement and the related electricity trade for Pohjolan Voima Group. (

PVO-Pool, Finland, continued Energy management for PVO Power Utility Transactions on the Nordic power market (Nord Pool) Invoicing to power plants, shareholders, customers Balance settlement and

24 PVO-Pool, Finland, continued Energy management for PVO Power Utility Transactions on the Nordic power market (Nord Pool) Invoicing to power plants, shareholders, customers Balance settlement and continuous power balance Covers many of Finnish power grid and electricity market participants Dynamic calculation and reporting for high performance and availability (redundant system configuration) ABB Process Industries - 24 February 1, 2013 Slide 24

Sotel, Luxembourg/Belgium/France - Arcelor Mittal Load management to limit peak demand 2008 Consumption forecasting for steel mills, Lux railways, etc.

Communication links to 3 steel mills to control EAF traffic lights 2010 Additional functions to support planning and operation of power procurement,

25 Sotel, Luxembourg/Belgium/France - Arcelor Mittal Load management to limit peak demand 2008 Consumption forecasting for steel mills, Lux railways, etc. Electric Arc Furnace Load management for peak shaving Power Monitoring to predict peaks in load demand EAF load control to avoid crossing contract limits Communication links to 3 steel mills to control EAF traffic lights 2010 Additional functions to support planning and operation of power procurement, including : Managing of power interrupt requests Mill level functions for consumption and interrupt monitoring 2011 Extended to France February 1, 2013 Slide 25

26 LKAB Sweden February 1, 2013 Slide 26

LKAB: Energy Management World s largest underground iron-ore Mine Increase energy and operational efficiency Reduce energy consumption Consumes 2 % of total electricity in Sweden 1 x HQ, 3 x Mines

27 LKAB: Energy Management World s largest underground iron-ore Mine Increase energy and operational efficiency Reduce energy consumption Consumes 2 % of total electricity in Sweden 1 x HQ, 3 x Mines and 2 x Harbours Energy monitoring, targeting and reporting Energy load planning (future) Reduce carbon dioxide and sulphur dioxide emissions Typical investment payback time ~ months February 1, 2013 Slide 27

28 February 1, 2013 Slide 28

cpmplus Energy Manager

Mark Reed, Automation, Data Center Industry Segment Initiative cpmplus Energy Manager December 13, 2012 Slide 1 Collaborative Production Management (CPM) Collaboration: A synonym for cooperation To work