The Front Lines of Industrial Energy Management
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1 The Front Lines of Industrial Energy Management Presented by: Marcus Wilcox, President, P.E.
2 Introduction to Cascade Energy Offices in Oregon, Utah, and Washington Staff of 50 (incl. 35 Engineers) Industrial energy efficiency consulting Food processing, pulp & paper, petrochemical, manufacturing, etc. Refrigeration, compressed air, pumping, fans, controls, process upgrades we hunt brake horsepower! Services include: Traditional retrofit or new construction efficiency projects Tune-ups (i.e., kaizen blitzes or retro-commissioning) Energy management tools and software Design and management of utility energy efficiency programs Corporate energy management e.g. Sysco (110 distribution centers) e.g., SuperValu (28 distribution centers) 533 bills & 225 meter pulse monitors 2
3 Driver: PNW Regional 6 th Power Plan 800 amw of industrial conservation by 2029 Nearly all <$50 per megawatt-hour Nearly half <$20 per megawatt-hour Pulp & paper accounts for 300 amw Food processing accounts for 200 amw Energy Management accounts for nearly 1/3 of industrial supply curve / 3
4 Driver: Washington s I-937 Applies to utilities >25,000 customers 17 WA utilities impacted Drives renewable and conservation portfolios Requires implementation of all available conservation that is cost-effective, reliable, and feasible Penalties for not meeting goals $50/megawatt-hour of shortfall s/text/i937.pdf 4
5 Bonneville Power Administration Energy Smart Industrial Program Cascade is the Program Partner 80+ public utilities participating, 1800 amw of industrial load Targets of 12 amw & 15 amw for FY2010 & 2011 respectively Program components include: Traditional Custom (Capital) Projects Targeted Small Industrial & Lighting Trade Ally Offerings Groundbreaking Energy Management portfolio! Web site: 5
6 EM in Energy Smart Industrial Program 6 Energy Project Manager Addresses staffing shortfall at end user level Co-funded site energy champion Funding linked to delivery of savings Purpose is to drive projects Track & Tune Targeting low and no-cost O&M measures Co-funding of tracking systems, tune-up agent, action items Incentives for measured savings Purpose is to deliver savings High Performance Energy Management Targeting sustainable practices Structured network groups or one-on-one Incentives for measured savings Purpose is to drive projects AND deliver savings
7 Energy Trust of Oregon Production Efficiency Program Serves Portland General Electric, Pacific Power, NW Natural Gas & Cascade Natural Gas customers (in Oregon) Reported 9 amw in 2009, targeting 12 amw in 2010 Cascade is a Program Delivery Contractor (PDC) Cascade is an Allied Technical Assistance Contractor (ATAC) Transitioning from EM pilot to full offering in 2011 Kaizen Blitz for industrial customers Web site: n-efficiency/ 7
8 Case Study: Sysco Largest food services company in North America $37 billion in sales Restaurants, healthcare, educational facilities, and lodging 110 food distribution centers (DCs) Freezers, coolers, dock, and dry warehouse space Rolled out program in March, 2006 Announced by #2 at Sysco Aggressive goals: 10% after 1st year 25% after 3rd year Another 5% by 6th year Three-Prong approach Develop energy management program & tools Tune-ups at every DC in 18 months Retrofits and high-efficiency new construction 8
9 Major Energy-Using Systems at Sysco Industrial Refrigeration (40% to 60%) Warehouse Lighting (10% to 20%) Dry Warehouse HVAC Battery Charging Freezer Floor Heating Dock & Freezer Doors Offices Truck Shops 9
10 Development of Energy Management Tool Helpful Hints & News Utility History Pulse Metering 10
11 11 Rollout of Pulse Metering Equipment
12 Site Tune-Up Process 1. Gather preliminary information 2. Opening meeting with players 3. 2 to 5 days of onsite identification and implementation Experienced energy engineer Experienced technician (e.g. refrigeration) 4. Closing meeting with players AND management 5. Delivery of final report Summary of completed action items List of pending action items with support and priority 6. Regular scheduled follow-up with Energy Champion to track performance and action item status 7. Savings typically 10% to 15% Some as high as 50%! 12
13 13 Site Tune-Up: Listening & Mentoring
14 Site Tune-Up: Reviewing Equipment Dirty Evaporators Tuning Regulators Incorrect Coil Liquid Feed 14
15 Site Tune-Up: Evaluate Control System Fixed Defrost Schedule Excessive Hot Gas Runtime Defrost Available Fan Cycling Disabled In many cases, operators are either unaware of efficiency features, or are hesitant to utilize them. In some cases, use of the feature is daunting. 15
16 Site Tune-Up: Immediate Impact 1,200 Plantwide Impact of Commissioning: Before & After 1,100 1, kw Commissioning Changes on 10/ /05 10/10 10/15 10/20 10/25 10/30 11/04 11/09 11/14 Date 16
17 Action Item Management Pending Action Items are posted to the EM site Energy Champion is responsible to complete them Implementation is tracked at the site and corporate level Statistics of Action Item completion is tracked relative to improvement 17
18 Benchmarking Across Company Cubic feet weighted by freezer, cooler/dock, and dry as well as average wet bulb for a normalized Efficiency Factor Entire company can be benchmarked Rank within company Rank within benchmark group Rank within region Top 25% is desirable Bottom 25% is undesirable! This report is seen across company. 18
19 19 Example: Sysco - Toronto
20 Example: Sysco Virginia Backsliding Identified & Remedied! 20
21 21 Example: Sysco - XXXXXX
22 22 Companywide Performance Companywide Energy Intensity Dec kwh/day/1000 ft 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
23 23 Performance Versus Baseline Period SYSCO Broadline Monthly Savings vs Baseline Period 35% 30% 31.7% Savings 25% 20% 15% 10% 5% Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Percent Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 0% Projected 6 Year Savings: $100 million
24 Sysco Lessons Learned Address both simple and complex systems or processes Focus on solutions, not blame Include everyone, particularly difficult people Emphasize that Functional Efficient Have strong corporate or management support Have motivated customer staff Maintenance and operator hands dictate energy use Target strong system or process energy expertise for identification of opportunities Focus on implementation, not simply identification Do it now if you can Utilize a simple tracking system Should be used by empowered and motivated personnel Designed to prevent or quickly identify back-sliding Acknowledge limited bandwidth of customer staff Empower management with simple but significant reporting Leverage a competitive environment e.g., Facility-to-facility comparisons e.g., Industry benchmarks 24
25 What Are End Use Customers Asking For? Focus on immediate, clear results Minimal use of staff time Both short & long-term strategies Deep expertise in systems & processes Help with staffing shortfall Integration with existing Lean, Six-Sigma, etc. Comprehensive, holistic programs Protection of confidential information (e.g. production, processes) M&V that is as short and simple as possible Mix of capital projects & energy management Regional consistency in terminology and programs Minimize multiple parties here to help you 25
26 What Are Utilities Asking For? High-performance M&V procedures High realization rates Method to claim annual incremental improvement Guarantee that double-counting cannot occur Could have overlapping capital & EM projects Ongoing tracking of performance Well-documented processes to account for changes in variables such as: Production levels Production mix Expansions Weather Processes that allow maximum measure life to be claimed Claims vary from 1 to 10 years of measure life Depends upon 1) rigor of M&V and 2) long-term tracking 26
27 Starting an Industrial EM Program? Make it easy to participate Emphasize short payback & low cost Emphasize minimal intrusion & time for customer Recognize limited customer staffing Don t obsess over free ridership or other common DSM program stumbling blocks Don t make participation contingent upon release of highly confidential data You must push program to the right people Build it and they will come will fail Collaborate regionally for consistency Tightly integrate EM into traditional DSM programs Remember that the utility needs savings as much or more than the end user Don t treat the end user like you are doing them a favor This is a partnership 27
28 Questions or Feedback? Marcus H. Wilcox, President, P.E. Cascade Energy Engineering, Inc. 28
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