Ameren Illinois Energy Efficiency Program. Practical Energy Management PEM Overview Workshop DATE 2/25/16

Transcription

1 Ameren Illinois Energy Efficiency Program Practical Energy Management PEM Overview Workshop DATE 2/25/16

2 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

3 Energy in Perspective Projected Worldwide Consumption Quadrillion BTU 5x OECD Non-OECD 90% % OECD (Organization for Economic Cooperation and Development ) Source: EIA International Energy Outlook Figure 12. Table 1.. Page 9.

4 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

5 Carbon Accounting

6 Market Ready? Pepsi Co? United Kingdom United States

7 Efficiency as a Resource Energy Consumption by Source Energy Effiency* Petroleum Natural Gas Coal Nuclear Biomass Hydro GWS Quadrillion BTUs Source: U.S. Energy Information Administration. Primary Energy Consumption Estimates by Source, *Source: Energy Efficiency: America's Greatest Energy Resource. Alliance to Save Energy. July

8 What s the Solution? Better Energy Management

9 Other Process Use 6% Industrial Energy Use Non-Process Use 11% Cogeneration 14% Process Heat 36% Machine Drive 16% Steam 17% Source: U.S. Department of Energy EIA (2005) 9

10 HVAC 2% Industrial Electricity Use Non-motor Use 22% Fans & Blowers 14% Pumps 24% DC Drives 8% Other Motors 12% Compressors 12% Machine Tools 6% Source: Federal Energy Management Agency 10

11 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 11

12 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? 12 -E Source, %

13 13 Ameren Illinois Energy Efficiency Program

14 Ameren Illinois Energy Efficiency Program s Mission Improve energy efficiency in Illinois by supporting customer energy efficiency projects that otherwise would not get completed

15 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

16 Ameren Illinois Energy Efficiency Achievements Since 2008, Ameren Illinois Energy Efficiency programs have helped thousands of businesses: 16

17 Ameren Illinois Energy Efficiency Program Available Assistance Technical Assessments Energy Advisors available to assist. Facility-wide Project-level Training & Education Webinars and Traditional Energy Using Systems Energy Management ActOnEnergy.com/Education Financial Incentives Prescriptive Incentives Feasibility Study Staffing Grants CLIP (Competitive Large Incentive Program) Metering and Monitoring Leak Survey Retro-Commissioning Custom Incentives

18 18 PEM (Practical Energy Management)

19 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

20 Energy Management Goals Planning Motivation Understand Energy Uses Support Communication Generate EE Ideas Awareness Quantify Opportunities Performance Tracking A purely technical focus goes only so far Select Projects Management Production Continual Improvement Approach Provide Justification Gain Approval Implement Projects to Save $$

21 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

22 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)

23 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

24 Practical Energy Management 8 Sections Management Plan Facility Profile Energy Use Profile Best Practices Project Prioritization Project Management Key Indicators Continual Improvement

25 Energy Management Plan Based on Results of Gap Analysis

26 Gap Analysis Tools U.S. EPA s Energy Star Program Provides program and facility level assessments U.S. Dept of Energy SEN Leaders Tool Provides assessment against ISO (March 2011)

27 Facility Profile Energy in Business Context Natural Gas Total Btu s Key Performance Indicators Lbs Resin Electric $ p Lbs Resin Electric MMBtu p Lbs Resin Gas $ p Lbs Resin 2006 (Annualized) 408,858 $ $2.53 Gas MMBtu p Lbs Resin Tot Energy $ p Lbs Resin $5.29 Water $ p Lbs Resin $0.52 Business Indicators 2006 (Annualized) Total Energy Cost $2,164,782 No.2 Oil Operating Costs Energy as % Oper. Costs $15,000, % Total Facility Costs $33,500,000 Energy as % TF Costs 6.46% Annual Profits $3,450,000 Propane Electricity Energy as % of Profits % Increase in Profits with 5% Reduction in Energy Costs 62.75% 3.14%

28 Best Practices Finding Opportunity Electrical MMBtu Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other

29 Best Practices Finding Opportunity Electrical MMBtu e.g. Free Cooling Project Save 2.5% Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other

30 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

31 Project Prioritization List

32 Project Prioritization List

33 Energy Efficiency vs. Energy Intensity Efficiency amount of output per unit of energy Intensity amount of energy per unit output

34 Terminology Energy Performance Indicators (EnPls) a measure of energy intensity used to gauge effectiveness of your energy management efforts. Baselining - comparing plant or process performance over time, relative to its measured performance in a specific (i.e. baseline) year. Benchmarking - comparing performance to average or established best practice level of performance against an appropriate peer group.

35 Energy Use Drivers Weather Square feet Production Volume Building occupancy

36 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)

37 EnPI Example Data Collection Select baseline year (e.g. 2008) 24 months additional data Ensure data intervals align

38 EnPI Example Scatter Diagram Energy use is dependent variable (y) Production is independent variable (x) Relationship appears linear

39 EnPI Example Trend Line Slope (m) Y-Int (b) 258,591 R 2 coefficient

40 EnPI Example Interpreting the Results Slope (m) - every Lb of extruded material requires kwh of electrical energy (Energy Intensity) Y-intercept (b) monthly electrical energy consumption unrelated to production is 258,591 kwh R 2 coefficient approximately 84% of the variation in monthly electrical energy consumption is explained by regression equation (i.e. m and b )

41 EnPI Example Baselining Performance Goal: improve energy performance by 10% in 2 years Year Variable kwh Base load kwh 2008 (Year 0) , (Year 1) , (Year 2) ,009 3-Year Value ,591 2-Year change Better by 30% Worse by 30% Curious results needing investigation

42 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, % = 11,730, = 977,500 lb per month ( 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, ,500 = 4.4

43 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

44 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 outputs Major system upgrades or change in operations Evaluate if baseline year EnPI values are still suitable

45 Practical Energy Management Senior Management change concern to commitment Energy Management plan turn gap analysis into specific actions for improvement Project Prioritization List quantify, track and report on energy saving opportunities Effective energy team It all starts here

46 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

47 Energy Team Meeting Minutes

48 Tools for Real Time Meetings

49 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

50 Energy Efficiency in Perspective Global Issues The Bottom Line The Solution

51 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

52 Contact Information Ron Ingram, Industrial Energy Advisor Ameren Illinois Energy Efficiency Program Office: Cell:

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