A Holistic Approach to Energy Management Presented by Ari Kobb Manufacturing in America March 14-15, 2018
Before we start A Penny for Your Thoughts Please share your thoughts about this seminar at the end of the session Feedback input will be rewarded Please help make this session interactive your input is valuable
Siemens Zero Carbon Commitment Siemens will halve its 2014 carbon emissions by 2020 100 m will be invested in energy efficiency 20 m annual savings from 2020 onwards expected 2.2 million tons -20% -50% -100% Drive Energy Efficiency Program Increase energy efficiency in factories as well as new construction Electricity 1.7 Leverage Distributed Energy Systems Optimize energy costs and leverage CO 2 footprint of decentralized systems Heating/ Process heat Reduce Fleet emissions Utilizing potential of low emission cars in fleet, including e-car potential Fleet Other 2014 2016 2020 2030 Purchase Green Energy Move towards a significantly cleaner power mix with a strong focus on renewable energies and high efficient gas and will be CO 2 neutral by 2030
Siemens Building Technologies Division: Approach to Energy Management Strategic Advisory Services Energy Management Supply-Side Optimization Generation & Distributed Energy Demand Side Optimization Sustainability Management Global Program Management Data Monitoring & Energy Analytics (Navigator )
Siemens Building Technologies Division: Comprehensive Portfolio of Services and Solutions Strategic Advisory Services Energy Management Supply-Side Optimization Generation & Distributed Energy Demand-Side Optimization Sustainability Management Strategic Procurement Risk Management Budgeting & Forecasting Utility Bill Management Supply Concepts & Studies On-site generation Micro Grids Demand Response Energy Audits Commissioning Site-Level Energy Projects Innovative Financial Structures Sustainability Strategy & Planning Emissions Management Renewable Energy Strategies Energy Asset Optimization DBOOM Dedicated Energy Management Global Program Management Data Monitoring & Energy Analytics (Navigator )
People, Process and Technology to Support your Needs Experience People Reach Results 1000s 800+ 400 99% of energy conservation projects implemented with combined worth more than $3B Dedicated energy professionals in the United States Branch offices globally provide unmatched reach with local support Siemens savings guarantee success rate Industry s most comprehensive energy and sustainability leader
The Global Impact of Buildings They consume 40% of all energy They use 25% of all water globally They emit 33% of all greenhouse gases Sources: CommScope/IDC Energy Insights, Business Strategy: Global Smart Building Technology Spending 2015 2019 Forecast Intel, Smarter Building & Homes With the Internet of Things
Key Trends and Impact on Energy Management of Tomorrow Decarbonization Decentralization Digitalization Increasing Efficiency
Key Trends and Impact on Energy Management of Tomorrow Decarbonization Decentralization Digitalization Increasing Industrial Ambitions & Commitment SDG & Science-based targets Increased deployment of Renewables Increased electrification of thermal processes Increase of non-commodity costs Demand-response Smart Grid management Growing significance of storage technologies Increased availability of data Deterministic and cognitive analytics tools Remote optimization Growing significance of BIM and digital modelling Increasing Efficiency
Corporate Commitment Continues 43% of Fortune 500 companies committed to renewable energy or sustainability targets as of 2016.
Energy & Sustainability Targets often Require Investment 60% of Firms have a Significant Number of Sustainability Goals in Place The Majority of Sustainability Goals focus on Resource Conservation and Use Emissions Reduction 60% Energy Reduction 54% 31% 30% Waste Reduction 51% Water Reduction 41% Supply Chain 35% 6% 9% 12% 12% Renewable Energy LEED/Certification Product Design 34% 30% 29% Product Sales 16% None 1 to 2 3 to 5 5 to 10 10 to 15 > 15
External Factors Create Risks Volatile Costs Rapidly Changing Regulations Unexpected Threats 48% 1000+ 48 Change in energy commodity price index in 2016 New or changed tariffs and rate structures that were rolled out for utilities across the United States in 2016 Number of hours that all 312 of Wesleyan University buildings (approximately 3 million square feet) went without power in October 2011, due to a snowstorm
Internal Challenges Reduce Efficiency Budget Allocation In-House Resources Lack of Transparency Expertise & Training Defining & Achieving Sustainability Targets
Total Energy Management is where Best Practices Intersect Reduce: Drive down energy consumption in order to reduce costs and the environmental impact of your organization. Produce: Generate and store energy on-site so that you are less reliant on the grid and have a more sustainable energy-mix. 1010101010110101 0101010101010100101 101010110101010101010101 0100101010101010101010 01010101010101010101010101 0101010110101010101010101 01001010101010101010101 10101010101010101010101 01010101010101010101 01010101010101010 1010101010 Data-Driven Optimization: Continuously analyze and optimize your building(s) and the improvement actions you ve taken to be more precise and effective with your investment decisions. Procure: Manage the energy purchasing process as a way to lower total energy spend, mitigate risks and meet sustainability targets. Most Organizations are Challenged to Maximize the Benefits of this Approach
A Comprehensive Approach to Reach your Goals Identify your key challenges Develop the solution that fits for your strategy Achieve measurable results and meet goals and objectives Budget Allocation In-House Resources Lack of Transparency 1010101010110101 0101010101010100101 101010110101010101010101 0100101010101010101010 01010101010101010101010101 0101010110101010101010101 01001010101010101010101 10101010101010101010101 01010101010101010101 01010101010101010 1010101010 Expertise & Training Defining & Achieving Sustainability Targets Total Energy Management A customizable suite of services and technologies designed to cohesively manage energy and increase business performance Most Organizations face Challenges to Maximize the Benefits of this Approach
Aligning Meaningful KPIs with Business Drivers and Desired Outcomes 2014 0.16 2014 0.16 2014 0.04 Energy Consumption Total GWh Used 2015 2016 2017 0.12 0.14 0.14 Energy Intensity GWh per vehicle produced 2015 2016 2017 0.12 0.14 0.14 Carbon Intensity GWh per $m Sales 2015 2016 2017 0.033 0.033 0.034 2014 17.5 2014 86 2014 0.35 2015 20.1 2015 102 2015 0.35 On-Site Renewables Total MW Generated 2016 2017 24.5 28.8 Renewable Electricity Total GWh Used 2016 2017 165 187 Fleet Emissions CO2 per Mile Driven 2016 2017 0.24 0.30
The Pathway to Optimization and Sustainable Performance Restricted Siemens AG 2016 usa.siemens.com/ecs
Where do you Start? Cost & Carbon Projections Electric Grid Greening Analyses Measure Evaluation & Prioritization Cost & Carbon Abatement Curves Scenario Analyses Formalized Strategy Description Base Case Scenario 2 Scenario 3 Scenario 4 Projects identified by P&W facilities with <3 year payback. Projects identified by P&W facilities with <5 year payback; Plus green power and green gas supply purchasing at 100% where available. P&W-identified projects plus projects Siemens identified via virtual audits; Projects with <10 yr payback considered; Plus green power and green gas supply purchasing at 100% where available. P&W-identified projects with <3 year payback; Plus green power and green gas supply purchasing at 100% where available. Energy attribute certificates sourced to address gap-to-plan. Capital Investment $5.1M $7.3M $185.8M $5.1M Portfolio Payback 1.1 years 1.3 years 7.8 years 1.1 years 2025 Demand Project Savings 2025 Green Energy Supply Costs 2025 Program Net Costs (savings) $4.8M $5.4M $23.8M $4.8M $0 $9.7M $7.8M $9.9M ($4.8M) $4.3M ($16.0M) $5.1M 2025 GHG Goal (+/-%) +176% +30% +5% 0% (Achieved)
% of RE Goal Renewable Energy Sourcing Strategies Renewable Energy Sourcing Strategies Strategic Planning Process Renewable Energy Certificates (RECs) Onsite Renewables Retail Supplier Programs Time Virtual PPA Structures Utility Green Pricing & Green Tariffs Once energy conservation and generation initiatives are defined, assess additional carbon reduction requirements. Evaluate renewable energy goals and product eligibility based on regional access and regulatory conditions. Assess conditions across the building footprint: - Energy cost and usage - Location characteristics - Energy market review Identify key internal stakeholders Prioritize locations for initiatives Evaluate organizational risk tolerances Prioritize renewable energy options
Core Challenge Prioritizing Energy Conservation Opportunities How can we ensure focus on the right improvement measures? Improvement measure selection A Investment focus 250 200 175 B Optimization focus 150 125 100 Improvement Investment C Monitoring focus 75 50 25 0 123 384 576 768 960 1,152 1,344 1,536 1,728 1,920 Continuous Optimization Time How can I focus on the right buildings in my portfolio? How can I focus on the right investments to improve the performance of my portfolio? How can I continuously improve the performance of my portfolio over time?
Siemens Building Pool: Manufacturing Sites
EUI Ranking: Manufacturing Portfolio FY2017, Sample size of 50 facilities 400.0 Energy Use Intensity [kbtu/ft 2 ] 350.0 300.0 250.0 200.0 150.0 100.0 50.0 - DIV 1 DIV 2 DIV 3 DIV 4 DIV 5 DIV 6 DIV 7 DIV 8 DIV 9 DIV 10 DIV 11 DIV 12 Average Div 1 Div 2 Div 3 Div 4 Div 5 Div 6 Div 7 Div 8 Div 9 Div 10 Div 11 Div 12 Top Performers (90 th Percentile) 0.0% 0.0% 13.3% 33.3% N/A 25.0% 0.0% 0.0% N/A 0.0% 0.0% 0.0% Bottom Performers (15 th Percentile) 0.0% 33.3% 13.3% 16.7% N/A 0.0% 0.0% 33.3% N/A 50.0% 0.0% 0.0%
Total Spend ($) Facility Prioritization Manufacturing Facilities $4,500,000 Bubble size represents Blended Utility Rate $4,000,000 $3,500,000 Site 7 $3,000,000 $2,500,000 $2,000,000 $1,500,000 Site 36 Site 16 Site 52 Site 42 $1,000,000 Site 53 Site 41 Site 17 $500,000 Site 23 Site 50 $- - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 EUI (kbtu/sf)
Total Spend ($) Facility Prioritization Manufacturing Facilities $700,000 Site 43 Bubble size represents Blended Utility Rate $600,000 Site 26 Site 58 $500,000 Site 57 Site 19 $400,000 $300,000 Site 1 Site 14 Site Site 549 Site 40 Site 6 Site 2 Site 60 Site 25 $200,000 Site 59 Site 44 Site 34 Site 51 Site 8 Site 32 Site 22 Site 10 Site 28 $100,000 Site 46 Site 56 Site 24 Site Site 309 Site 39 Site 29 Site 4 Site 45 Site 37 Site 47 Site 21 Site 20 Site 27 Site 12 Site 38 Site Site 183 Site Site 3335 Site 11 Site 13 48 Site 31 Site 55 Site 15 $- Site 54-20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 EUI (kbtu/sf)
Site Comparison of Top Users Rolling 12 Month Energy Consumption (kbtu) Energy Spend ($) EUI (kbtu/ft 2 ) ECI ($/ft 2 ) Site 7 227,677,324 $3,605,604 181.9 $2.88 Site 42 196,095,999 $1,641,244 215.2 $1.80 Site 16 110,823,974 $1,711,239 181.5 $2.80 Site 52 90,986,492 $1,503,392 190.1 $3.14 Site 36 87,929,467 $1,091,724 190.1 $3.14 Site 43 74,985,929 $659,547 89.3 $0.79 Site 58 72,509,113 $575,132 182.7 $1.45 Site 50 70,425,321 $777,970 379.9 $4.20 Site 41 61,285,528 $1,102,940 117.4 $2.11 Site 53 54,436,744 $1,082,077 92.9 $1.85 Site 17 51,652,510 $1,076,860 338.9 $7.07 Site 19 43,472,835 $486,718 176.5 $1.98 Site 23 31,600,624 $596,143 325.8 $6.15
Improvement Measure Opportunities Savings potential increases with longer bundled payback 5 to 7+ year payback Less than 3 year payback HVAC Retro-Commissioning Compressed Air Leak Repair and Elimination of Improper Use Chiller Plant Optimization for Upgraded Facilities or New Construction Ventilation Effectiveness Steam Trap Maintenance 3 to 5 year payback Variable Frequency Drives for large motors with constant operation HID & Fluorescent (T-12, T-8) Lighting Upgrades & Controls Compressed Air Optimization & Controls Chiller Plant Optimization for Existing Facilities Heating System Retrofit (Infrared Heaters) Peak Demand Shedding Power Factor Correction Variable Frequency Drives for all motor types Fluorescent (T-5) & Exterior Lighting Upgrades & Controls Chiller & Boiler Plant Efficiency Upgrades Compressed Air Efficiency Upgrades Central HVAC Controls Thermal Recovery High Speed Doors Destratification HVAC Equipment Replacement On-site Energy Generation (Solar, CHP, etc.) Savings Potential 3% 5% 10%+
Aggregate Payback (Years) Cumulative Annual Savings Energy Abatement Curve (0 5 Year Measures Only) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Measures With <1 to 3 Year Payback A $3.4 Investment can Produce ~$2 Million in Annual Value with a Simple Payback of <2 Years $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Cumulative Implementation Cost Portfolio Aggregate Payback Cumulative Annual Cost Savings
Align Demand Project Prioritization and Funding Prioritize Project Opportunities Define Funding Mechanisms Self-Funded Internal Carbon Price Performance-based Solutions Leverages available capital or self financing Typically restricted by internal ROI standards Carbon shadow pricing, carbon tax, etc. Funds are used to invest in energy projects Energy savings fund the improvements Guaranteed, performance-based contract Off-Balance Sheet Financing Executed as a service agreement No capital investments required
Getting from Data to Information Client Confidential Siemens AG 2018 www.siemens.com
Many Corporations Struggle To Manage Their Sustainability and Energy Data Energy and Carbon data is complex: - Data can be challenging to collect, standardize and manage - Global reporting is labor-intensive and time consuming - Volatile energy prices place corporate profit margins at risk - Evolving carbon regulations and energy efficiency rules create liabilities Savvy companies are gaining a competitive advantage by maximizing the value of information, not just data Today s corporations need a concise, global plan to manage Energy Supply, Energy Demand, and Sustainability
Value Generation Requires Intelligent use of Data From big data Visualize and communicate Optimize to value Increase energy efficiency Optimize energy supply Connect Analyze and simulate Collect Store Increase sustainability Be legal and regulatory compliant Ensure business continuity Reduce cost Increase asset value Better informed decisions, optimized investments and effective use of assets
Get transparency on your KPIs Get the data right! Individual dashboards to follow KPIs and other key parameters For single buildings to multiple buildings around the world Covers energy consumption and costs, energy supply and environmental performance
Siemens Navigator: Powering Energy and Sustainability Programs 1. Connect: Extract data from systems, equipment and sensing devices Weather BAS Metering Siemens Navigator Utility Operating Data Mkt. Pricing 2. Collect: Centralize data from multiple systems / sources 3. Analyze: People & Technology use data to generate actionable information Dashboard Efficiency Supply Environment Performance Projects 4. Optimize: People & technology enhance systems and operations based on actionable information Energy Engineer Account Manager/Engineer Supply and Sustainability Consultants Remote and On-Site Technical Expert 5. Communicate: "Report" transparent results to various users Dir. of Energy C-Level Executive Compliance Mgr. Facility Manager Procurement Dir. Sustainability Mgr. Energy Efficiency Financial Compliance System Performance Cost Carbon Footprint
Aligning Meaningful KPIs with Business Drivers and Desired Outcomes 2014 0.16 2014 0.16 2014 0.04 Energy Consumption Total GWh Used 2015 2016 2017 0.12 0.14 0.14 Energy Intensity GWh per vehicle produced 2015 2016 2017 0.12 0.14 0.14 Carbon Intensity GWh per $m Sales 2015 2016 2017 0.033 0.033 0.034 2014 17.5 2014 86 2014 0.35 2015 20.1 2015 102 2015 0.35 On-Site Renewables Total MW Generated 2016 2017 24.5 28.8 Renewable Electricity Total GWh Used 2016 2017 165 187 Fleet Emissions CO2 per Mile Driven 2016 2017 0.24 0.30
Seminar Slides After MiA, seminar slides will be available at: http://www.usa.siemens.com/mia-seminars
Questions? Ari Kobb Director, Energy Efficiency & Sustainability Services Siemens Building Technologies Division 847-970-0350 Ari.kobb@siemens.com