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 together, especially in a joint intellectual effort. Collaborative Production Management: The application of collaborative manufacturing principles applied to the management of manufacturing processes. CPM achieves A suite of applications that unify information and functionality to provide the execution of manufacturing instructions, visibility of real-time Operational production status, traceability Excellence and genealogy of manufactured product, performance analysis of production operations, paperless management of the production process, and operator instructions.* by unifying systems * Source: ARC - CPM Systems for the Process Industries December 13, 2012 Slide 2
ABB CPM - Our commitment ABB Collaborative Production Management Helping customers improve productivity while conserving energy. Focused on meeting the business needs of our customers. Customer value creation: We provide products and services to help our customers to improve plant productivity, energy efficiency and reduce the environmental impact and reduce the TCO of CPM systems. Product Quality and Performance: Our products meet the high quality, performance, usability and availability requirements of business critical systems. Delivery Performance: We are committed to meeting the agreed customer schedule, functionality, quality and training requirements. Customer Service: We provide professional services with fast response time to maximize the utilization and value creation of delivered CPM systems and products. December 13, 2012 Slide 3
Why is Energy Management essential? 12,000 10,000 8,000 6,000 4,000 2,000-1965 1970 1975 1980 1985 1990 1995 2000 2005 2008 Oil Natural Gas Coal Nuclear Energy Hydro electric World energy consumption (Metric Ton) by fuel type Source: BP - Statistical Review of World Energy 2009 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 cement industry 30%-40% In steel industry even 50% In data center industry, up to 45% of OPEX Experience shows that Energy savings up from 10% to 25% can be reached by various actions (2) (1) Based on geographical area (2) Source: ARC Best Practices for Energy Management report, Jan. 2009 December 13, 2012 Slide 4
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 Energy Optimization Progress & Results Energy Monitoring & Reporting, Network Management, Power Management, Process Optimization DCS, Process Control Measurements, actuators, drives, motors December 13, 2012 Slide 5
How to Get Savings in Energy Costs Reduce Decrease Cost of consumed energy $ / MWh Specific Energy Consumption MWh / Units Average Unit Price Energy consumption Price Optimization Total Energy Consumed Production output Usage Optimization Increase Energy Cost Effectiveness (ee) Units / e$ Production Units Unit Energy Cost $ Energy Efficiency / Energy Cost ee is a KPI = Units per energy dollar December 13, 2012 Slide 6
ABB Offering for Energy Management MicroSec Days External Power Grid Consulting Local Electrical Network and CoGen Energy Monitoring and Reporting Manufacturing Operations Process Automation Hardware Equipment Electrical Integration Network Management Automation Power Management Process Optimization Energy Optimization December 13, 2012 Slide 7
cpmplus Energy Manager is A software package that allows you to: Monitor and report energy usage and efficiency Predict energy demand based on production data Balance energy usage against purchased energy commitment Optimize energy usage, production and procurement Benefits 2 to 5% cost savings possible with smart energy procurement and energy efficiency monitoring with Energy Manager tools Purchase or produce your energy at the lowest market price Optimize the use of alternative energy sources Improve energy efficiency and reduce energy costs Improve energy cost consciousness cpmplus Energy Manager is winner of the 2010 Control Engineering Engineers Choice Award for best software package in the Energy Dashboard category December 13, 2012 Slide 8
cpmplus Energy Manager Functionality EM Tools Function Strategic planning Budget External input Load planning Planning simulation tools F U T U R E Support for hedging Long term energy plans Operative planning Load planning Production plans, weather forecast Power trading (day-ahead auction) Market price forecast Balance management On-line measurements Load prediction Trading in energy balance market Concluded balancing contracts P A S T Continuous power monitoring Energy reporting and cost accounting Revenue meterings Balance settlement Reconciliation and approval December 13, 2012 Slide 9
Lowering costs using cpmplus Energy Manager Key element in energy management program Predict accurate energy demand schedules Lower costs, fewer penalties Manage varying energy price Allocate energy consumption and production Utilize several optional sources of energy Use most cost effective sources/fuel types and energy purchase contracts Monitor efficiency Establish targets, monitor energy efficiency - improve realtime decision making Energy usage and carbon footprint reduction for a sustainable manufacturing strategy Assign costs to production centers Cost accounting for company s internal energy distribution Drives cost consciousness Reconciliation of periodic energy bill December 13, 2012 Slide 10
Example: Benefits of Accurate Planning & Monitoring Surplus power to the grid operator: $30/MWh Case 1 Power [MW] Measured consumption: 92MW 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 Annual savings consumption: 108MW ~$600,000 = 2% of total electricity costs Measured consumption: 99MW December 13, 2012 Slide 11 Average price: $40.87/MWh Average price: $40.74/MWh Average price: $40.10/MWh
cpmplus Energy Manager is a Modular Package Energy Monitoring and Reporting Start with the basic monitoring and reporting against targets Energy Load Planning Energy demand planning and accounting Energy Operations What-if scenario management Parallel scenarios for what-if analysis and comparison 1 2 3 5 Optional Energy Optimization Comprehensive optimization of energy demand and supply cpmplus Application Platform Database cpmplus Clients User interface 800xA Integration OPC Integration Optional Prod Plan Integration 4 Optional IMO Integration December 13, 2012 Slide 12
cpmplus Energy Manager reference systems Energy Manager is cross-industry application Pulp & paper mill Pulp & paper corporate center Board mill Steel mill Foundry Power utility Oil refinery Water processing ABB has over 20 years experience in helping industrial customers to be more competitive using Energy Management 40+ Energy Manager systems delivered since 2000 December 13, 2012 Slide 13
European Steel Mill Results Annual energy cost 100M cpmplus Energy Manager Measurement Interfaces Energy Monitoring and Reporting Load Planning and energy optimization Savings of 5% energy, 1,000 Tons CO 2 reduction Predict/manage consumption, avoiding peaks Schedule power production at peak hours resulting in less purchased power December 13, 2012 Slide 14
UPM Corporate wide Energy Management Corporate-wide energy management network 20 TWh/y total electric energy procurement 18 Mill systems and two corporate centers UPM-Kymmene is the third biggest forest industry company in the world, and the leading manufacturer of magazine papers. Energy procurement and production planning, real-time monitoring and reporting on mill and corporate level Reductions in carbon dioxide and sulphur dioxide emissions Investment payback time ~ months December 13, 2012 Slide 15
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 - 16 December 13, 2012 Slide 16 Approximately 25% of total electric 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. (www.pvo.fi)
Swiss Steel AG, Switzerland Energy management and optimization for steel mill Energy Management for steel mill and rolling mill Electric power consumption planning Steel mill with electric arc furnace Rolling mill Auxiliary systems Sending load schedules to electricity supplier Tie-line monitoring to keep power consumption within contract commitments Contract and balance management to allocate energy costs to users December 13, 2012 Slide 17
cpmplus Energy Manager Summary Purchasing Power Addresses business side of energy management Lowers cost of purchased electricity Predicts detailed energy consumption automatically (i.e. for next day) Provides accurate demand plans for electricity supplier Consuming Power Provides clear, on-line visibility into your energy efficiencies Allows you to be aware of your energy costs in realtime Provides decision support for immediate reaction - avoid penalties/increased energy costs December 13, 2012 Slide 18 - Internal Confidential
December 13, 2012 Slide 19