South Carolina Society for Hospital Engineers Selecting Energy Partners: Criteria & Pitfalls and the Top 10 Ways to Reduce Energy in a Hospital Presented by Jon Dierking, PE, CEM, LEED AP Director of Energy Management Shaw Environmental & Infrastructure, Inc.
Agenda Energy Efficiency Market Drivers Energy Efficiency Partners Components of an Energy Assessment Typical energy efficiency measures Grant & Incentive Funding Sources
Energy Market Drivers Rising Utility Rates 5.2% for electric Energy Market Volatility Increase in grant & incentive funding Energy efficiency more financially attractive Focus on sustainability or Green
Healthcare Energy Use In 2007, health care organizations spent over $8.3 billion on energy expenses Increased by approximately 10% over the last 3 years Expected to rise an additional 3-5% in 2011 Health care facilities use 9% of all commercial energy consumption in the U.S. Energy intensity (Btu/sq. ft./year) of inpatient health care facilities are second only to fast food establishments
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Energy Efficiency Partners Energy Efficiency Engineering Firms Engineering companies specializing in energy audits and ReCx Provide energy efficient design, specification & Installation Energy Service Companies (ESCO) Provide performance contracting services Provide project financing based on energy savings Energy Utilities Provide energy efficiency incentives & grants Can provide energy assessment services
Selecting an Energy Efficiency Partner Vendor Qualifications Professional Engineers (PE) Certified Energy Managers (CEM) Certified Energy Auditor (CEA) LEED AP Vendor Equipment Neutral Target engineering firms and ESCO s that promote the best product, not just their product Concerns with Vendor ESCO s promoting their own equipment Energy Utility Partnerships Target energy companies that are providers within utility energy efficiency programs Can provide subsidized energy assessment services Understand the incentive requirements and process
Selecting an Energy Efficiency Partner Request for Qualifications Implement an RFQ process to assess multiple energy efficiency companies RFP for ESCO Services Hire an energy efficiency engineering firm for assessments, and RFP for performance contracting and financing Alleviates vendor neutral concerns Consult your electric utility Preferred vendor lists Approved energy efficiency program provider lists
Tools for Reducing Energy Usage Energy Audit Analysis of the energy used in your facility Identifies opportunities to reduce energy usage Targets operational changes and capital improvements Retro-Commissioning Systematic approach to optimize building operation Targets low cost operational change energy savings projecst
Energy Audit & ReCx Benefits Reduce energy usage & costs Typically identifies 10% to 30% in annual energy cost savings potential Identify where energy is used Identifies and prioritize potential opportunities Identify most cost effective options Determine efficiency upgrade Return on Investment (ROI) Support capital planning Environmental benefits Reduce use of fossil fuels Reduce GHG emissions and effect on climate change Optimize building comfort and system performance
Levels of Assessment ASHRAE guidelines and procedures for energy auditing Publication RP-669, SP-56, Procedures for Commercial Building Energy Audits. Level I - The auditor assesses a facility s energy cost and efficiency by analyzing energy bills and conducting a brief on-site survey of the building. Level II - This level includes a more detailed facility survey and energy analysis. A breakdown of the energy use within the facility is provided. Level III - This level of engineering analysis focuses on potential capital-intensive projects identified during the Level II analysis and involves more detailed field continuous monitoring data gathering as well as a more rigorous engineering analysis.
Components of an Energy Audit Utility bill analysis Benchmark review Onsite assessment Energy efficiency measure analysis Performance report and recommendations Grants and Incentives
Utility Bill & Benchmark Analysis Utility rate / commodity purchasing analysis Energy usage trending
Onsite Assessment Activities Interview site management Assessment Review Areas Assess equipment efficiency Review building system operations Processes equipment assessment Continuous data logging HVAC Systems Building System Operation Operational Procedures Building Automation & Control Lighting & Lighting Control Pumps & Motors Water Consumption Systems Domestic Hot Water Systems Process Equipment Renewable Energy Systems Utility Automation & Metering
Audit Report Energy performance analysis Energy efficiency improvements recommendations No / low cost & capital improvements Prioritization of improvements Cost, ROI, incentives, implementation difficulty Grants and Incentives Identification
Low / No Cost Measures Night Set-Back Temperature Set-backs: Process Equipment Shut-down: (5% - 10% HVAC energy savings) (2% - 3% equipment energy savings) System Scheduling & Set-point Economizer Set-point: Reduce DHW Set-point: (3% - 5% energy savings) (3% - 5% energy savings) Preventative Maintenance (5% 10% HVAC energy savings) HVAC Coil Cleaning Filter Replacement Refrigerant Charge
Capital Improvement Measures Motor Retrofits High Efficiency Motors: VFDs: (5% - 10% motor energy savings) (5% - 40% motor energy savings) Lighting System Upgrades LED Exit Signs: Incandescent to CFLS: T-12s to T-8s: High bay Fluorescents: Occupancy / Daylighting: < 1 yr payback (70% - 90% savings) < 1 yr payback (50% - 60% savings) < 3 yr payback (40% savings) < 5 yrs payback (20% - 30% savings) < 7 yr payback (15% - 30% savings) High Efficiency Air Conditioning Systems Roof Top Units: (10% 30% HVAC energy savings) Chillers: (10% 15% cooling energy savings)
Energy Efficiency Opportunities High Performance T8 Lighting Retrofit T12 Lighting to T8 Lamp and Ballast replacement Magnetic to electronic ballast T12 (1.5 ) to T8 (1 ) lamp Option to keep fixture / reflector Benefits Approx 40% energy savings Payback less than 3 years Increased light levels Better light quality Option to reduce fixture amounts 21
Energy Efficiency Opportunities Incandescent to LED Exit Signs Incandescent to LED signs Incandescent use 20-40 watt LEDs use 2 to 5 watts Benefits 70% to 90% savings Payback less than 1 year LEDs last up to 20 time longer Reduced Maintenance costs 22
Energy Efficiency Opportunities Lighting Controls Lighting Control Strategies Occupancy control Daylighting Timers Benefits 15% to 30% savings Payback less than 7 years Reduced Maintenance costs 23
Energy Efficiency Opportunities Compressed Air Systems - Leaks Repair Compressed Air Leaks Target joints and fitting leaks Ultra sonic leak detecting tool Benefits Savings average: $8 per hole (for a 1/64 hole) $126 per hole (for a 1/16 hole Low/No cost repair Immediate savings 24
Energy Efficiency Opportunities Compressed Air Systems Control Retrofit Throttling Valve with Load/unload or VSD Control Load / unload doesn t allow compressor to operate at lower efficiency point Target throttling operating less then 70% full load Reduces compressor operating time Benefits 10% - 25% energy savings Reduced maintenance costs 25
Energy Efficiency Opportunities High Efficiency Motors High Efficiency Motors Use NEMA premium efficiency motors Target 5 HP or greater Motor Master savings tool Benefits Up to 5% energy savings Longer run time = greater savings Maintenance savings Longer payback but often improves ROI on planned replacement projects 26
Energy Efficiency Opportunities Variable Speed Drives Install Variable Speed Drives Optimally control motor speed and load Target motors using throttle control Used on Fans, pumps, drives systems Benefits 5% to 40% energy savings Operate motor at optimal point on efficiency curve Longer run time = greater savings 27
Energy Efficiency Opportunities Install Notched Motor/Fan Belts Replace V-Belts with Notch belts Used on Fans, pumps, drives systems Increase grip and reduce slippage Benefits 2% to 8% increase in energy performance Increased belt life Minimal cost increase 28
Energy Efficiency Opportunities Steam Systems Leaks / Steam Traps Repair Steam Leak and Steam Traps Water hammering Preventative maintenance Consider Reliability Center Maintenance Program Benefits 5% to 20% energy savings Maintenance savings Immediate payback 29
Energy Efficiency Opportunities Steam Systems Efficient Boilers Boiler Operation Reduce boiler stack temperature Flue gas analysis Blow-down control Benefits 1/8 hole = 600 Mbtu/yr Maintenance savings Immediate payback 30
Energy Efficiency Opportunities Energy Efficient Water Chiller High Efficiency Chillers 0.5 kw / ton or higher for new systems Benefits 10% to 30% chiller savings Increased control VSD control capabilities Maintenance savings Longer payback but often improves ROI on planned replacement projects 31
Energy Efficiency Opportunities Energy Efficient Package or Split Systems High Efficiency Chillers 13 EER or higher for larger units 18-23 SEER or higher for smaller units Benefits 10% to 30% efficiency savings Increased control Economizer control capabilities Maintenance savings Longer payback but often improves ROI on planned replacement projects 32
Energy Efficiency Opportunities Supply Air & Temeparture Setback Night Temperature Setback Target administrative spaces that are not occupied after hours Utilize BAS schedule to condition spaces (patient rooms, labs, surgical rooms, etc.) only when occupied Benefits 5-10% efficiency savings Low cost / No cost implementation Maintenance savings 33
Energy Efficiency Opportunities Demand Control Ventilation CO2 Demand Control Ventilation Reduces outside air ventilation amounts when rooms are unoccupied Utilizes CO2 sensor located within each space or within return ductwork to adjust ventilation dampers and CFM Meets hospital ventilation requirements while reducing energy consumption Benefits Saves on heating and cooling costs 10% to 20% efficiency savings Increased control Maintenance savings 34
Energy Efficiency Opportunities Humidification Control Surgical Suite Optimization Past Design Current Design Temperature 68-75 Deg F 62 Deg F Humidity 30-60% 50% Benefits Reduces heating requirements during the winter 5-10% savings on humidification equipment Maintains better suite comfort Reduces potential for simultaneous humidification and dehumidification 35
Energy Efficiency Opportunities Energy Star Appliances Energy Star Equipment Appliances, Monitors, copies, HVAC, water heaters, etc. Benefits Up to 10 to 30% more efficient than standard equipment Energy Star Label makes it easy to identify 36
Energy Efficiency Funding Support Typical Funding Sources Federal Tax Incentives Duke & Progress Energy Programs Identifying Sources 37
Energy Efficiency Funding Sources Energy and Renewable Portfolio Standards State level mandates to promote energy efficiency and renewable levels Typically support objective through incentive programs Utility Rebate Programs Utility based programs to incentivize energy efficiency and renewables Federal Tax Incentives National tax incentive based programs tailored toward business 38
Grant Funding Sources Duke and Progress Energy Incentives Duke Smart Building Advantage Program Covers cost for energy assessment Duke and Progress Energy capital project incentives Prescriptive and custom incentives Typically cover 20-30% of cost effective energy efficiency projects http://www.duke-energy.com/environment/energy-efficiency.asp https://www.progress-energy.com/carolinas/business/saveenergy-money/index.page? 39
Grant Funding Sources Federal Tax Incentives Up to $1.80/sq. ft. available: Building must save at least 50% of heating and cooling energy Partial deductions of up to $.60/sq. ft. available for measures affecting: the building envelope, lighting, or heating and cooling systems Deduction extended through 12/31/13 40
Grant Funding Sources Resources to Identify Funding Sources Perform Resource Assessment of Funding Sources: Identify state, utilities and national funding sources to support initiatives DESIRE www.dsireusa.org Tracks Federal, State, utility and municipal energy and renewable programs State Energy Offices Utility Companies IRS Private foundations 41
Summary Select a qualified energy partner Identify & prioritization improvements Cost, ROI, incentives, implementation difficulty Utilize Grants to reduce capital costs
Questions / Discussion Contact Information Jonathan Dierking, PE, CEM, LEED AP Director of Energy Management Shaw Environmental, Inc. Ph: (312) 218-1105 jonathan.dierking@shawgrp.com