Benefits of Energy Management Presented by Mark Leinmiller.

Benefits of Energy Management

Presented by Mark Leinmiller

Smart Water for Smart Cities Workshop1:00 PM Tuesday May 20, 2014

Schneider Electric 2- Industry – Water – December 2012

By end of this session you will know…

1. What Energy Management is

2. How Energy Costs impact operations

3. First steps in Energy Management

4. Alternative funding for Energy projects

5. Measurable benefits of Energy Management


What is Energy Management?

Ideally, it is a comprehensive, ongoing program involving all levels of W/WW system employees targeted at controlling costs associated with energy and maximizing system reliability.

Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop

http://www.se-eml.com/



Why is Energy Management Important?


• Paying the bills• One of largest monthly bills• What % of your city/county energy

spend goes to W/WW ?• Dallas, TX @ 50%• Houston, TX @ 50%• Clinton, AR @ 65-70%• Tulsa, OK @ 60%

• Performance Indicator• Car: MPG

• What if dropped 20%• Specific Energy (KWH/MG)?

• RWI pump dropped 20%• Train 1 vs. Train 2

• 15% more efficient. Why?

Typical City Energy Usage

Schneider Electric 5| Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31st, 2014

We can’t wait for new

technologies

we don’t have toEfficiency solutions are available

now


Plant Profile


• Wastewater Treatment Plant• 70 MGD avg flow• 90 MGD design• Influent BOD5: 142• Effluent BOD5: 2.4• No trickling filters• Nutrient removal

• Average Annual Electrical Spend• 8.9 cents/KWH• 1,800 KWH/MG• $3,979,413

• Potential Annual Savings• $1.2M @ 30%

See your potential savings: • http://www.se-eml.com





What is my strategy?Energy & Sustainability Consulting – Get some help

●Strategic Energy Planning

●Sustainability Roadmaps

●Energy Star/LEED Assessments

●Energy Market Intelligence

●Energy Rebates & Incentive Support

●Doing nothing is a also a strategy

● Have to decide how valuable● How fits with local culture


How do I buy?Energy Procurement Services

●Energy Sourcing

●Renewable Asset Management

●Rate & Tariff Analysis

●Demand Response

●Energy Risk Management


How do I control?Power Reliability & Metering

●Metering Design & Commissioning

●Third-party Systems Integration

●Remote Energy Monitoring

●Emergency Power Supply Systems

●Power System Control

●Demand Control


How do I optimize?Infrastructure & Efficiency Upgrades

●Process Optimization

●Systems Automation & Integration

●Design/Build Energy Projects

●Performance Contracting

●Mechanical & HVAC Retrofits

●Renewable Energy Solutions


How am I performing?Measurement & Reporting

●Performance Assurance

●Energy & Carbon Reporting

●Operations & Maintenance Support

●Sequence of Events Recording

●Energy Data Analysis

●Cannot manage what you do not measure


First Steps in Energy Management


How do I get started?


• Figure out where you are today• Get a baseline• Compare monthly power bills to flows• May have seasonal variations

• Look at penalties• Demand charges• Power factor charges• Other power quality issues

• Ask for help from trusted advisors• Consultants• Vendors

• Put together a long-range plan to get a handle on energy spend and how to reduce it. And keep it down!

• Energy prices are only going to go up!


How do I monitor?


• Start with what you already have• 3 Main Elements

• Monitoring Devices record data• Power meters• Motor protection relays• Circuit breakers with comms• UPS systems• Generator systems

• Software to accumulate & manage data, display information

• Existing SCADA • Purpose-built software

• Communications interface• SCADA network, RTUs


Build system out further


• Create some basic screens for trending• Trend usage data• Send data to historian• Correlate energy data with

operational data• Generate benchmarking reports

• As you start seeing the benefits, grow the system

• More metering means better data• Specific processes• Individual pieces of equipment

•Predictive maintenance• More reliability


Adding Power Quality to system


• Energy monitoring• How much energy consumed• Basic data (kWH)• Can be broken down by

process• Even down to the individual

equipment or motor level• Can be done with existing

SCADA• Can use many existing

devices from numerous manufacturers

• Tie energy consumed to flows (kWH/MG)

• Compare your plant to benchmarks (Energy Star)

• Power monitoring• Includes energy monitoring• Adds Power Quality aspects

• Sag, surge, spike, transient• Waveform capture, analysis

• Advanced features improve predictive maintenance, diagnostics, mean-time-to-repair, • Alarming• Direction detection• Sequence-of-events

recording (SER)• Harmonics, resonance

• Specialized PQ devices required


Power Monitoring


• Benefits to Operations• RELIABILITY• Capture disturbances

before equipment failure

• Recoup costs from power company for damages

• Determine, Monitor and Reduce Energy Consumption

• Reduce Energy Costs• Manage Electric

Demand• Central Command

Center

Computers & Process equipment

should ride throughevents inside the

“envelope”

Events outside the envelope

are severe enough

to cause misoperation


Power Monitoring


•Benefits to Engineering• Capacity planning• Easy access to data• On-line documentation• Increase reliability• Minimize downtime

• Increased safety• Easy access to data• On-line documentation• Increase reliability• Minimize downtime

• Benefits to Maintenance• Alarming / Paging• Automatic Meter Readings• Generator Testing• Identify Leaks / Waste


Environmental & Safety - Time and Money

●Arc Flash Events

●Optional remote breaker operation

●Enhanced Safety

●Minimize Protective Equipment issues


Which method is safer?


●Minimize Personnel Exposure

●Avoid the hazard of installing temporary portable monitors

●Avoid safety hazards to personnel connecting to energized equipment

Environmental & Safety - Save Time and Money

• Spot energy waste or inefficient users• Improve efficiency with accurate & timely

data. (kWh/gallon, per shift)• Drive ‘accountability’ by allocating costs• Double check the utility bill !

Typical 2 – 5% reduction

Reduce Utility Cost

• Identify “true” elec. gear capacity• Maximize equipment life (maybe defer

capital expense)

Optimize Equipment

Typical 2 – 5% reduction

• Real Time Alarms can notify of approaching breaker trip, or overheating motor, single phase alarm

• Diagnose power problems to avoid them next time

Improve Reliability

Additional 2 – 5% reduction


Energy Efficiency Renewables

Time

En

erg

y U

se (

kW)

Baseline RenewTime

En

erg

y U

se

(k

W)

Baseline EE

3 Part Energy Reduction Approach

Lowers energy demand by reducing ongoing energy use

Lowers utility energy demand by shedding loads during peak period only, may preserve grid integrity and/or provide an economic incentive

Demand Response

Utility Demand Before


Utility Demand

After

Utility Demand

After

Derives some part of energy need from regenerative or non-depleting resources, thereby lowering total utility energy demand

Time

En

erg

y U

se (

kW)

Baseline Demand Response


Utility Demand

After


Potential Funding Mechanism


Annual cost of doing nothing

Save or buy?• You can use the

savings to:• finance energy

efficiency projects

• finance infrastructure upgrades


1 Current Utility Budget

Energy Bill

Energy Efficiency Improvements

Reliability Improvements

Equipment Repairs &Replacements

Performance ContractingHere’s How It Works

Example of Your Annual Energy Budget:

After performance contracting, the budget remains the same as energy savings pay for the facility improvements.


Long Payback

Cost Savings

Quick Payback

Cost Savings

What Can We Get Through a Comprehensive Energy Efficiency Project?

• Real-time Energy Monitoring

• SCADA System

• VFDs

• Aeration System Optimization

• Biogas for CHP

• Optimize Digester Performance


Project Management

Performance Contracting

Approach:

One Company Accountability● General contractor

● Construction manager at risk● Subcontractor management

EnergyManagement

Bid-Spec Approach with Traditional Construction:

Multiple Accountabililty Sources● Client hires general

contractor as project manager

● Risky, expensive and time● Management of

subcontractors


Engineered Solution

Performance Contracting Approach:

Focus on Energy Efficient Operations and Design

● Maintenance of normal operating parameters

● Emphasis on long-term system performance and cost factors

● Holistic design that capitalizes on the interactions of the ECMs

EnergyManagement


Focus on Exceeding Operating Paramenters

● Energy efficiency can compete with operating parameters

● Emphasis not on long-term system performance

● Piecemealing ECMs doesn’t create synergy


Savings: Energy, Chemicals, Labor, Fines


Guaranteed Energy Savings Fund Improvements

● Savings are maximized over time when improvements are done at once

● Project designed for performance

● Measurement and verification of savings

EnergyManagement


Sporatic Savings Can Occur; Not Guaranteed

● Savings degradation over time if performance not made visible

● Focus is meeting specifications, not achieving savings


Financial Guarantee


Partner for Performance● Guarantee ensures a partner ● Vested interest in project

performance ● Accountable for results

EnergyManagement


Bid-Spec; On to Next Project● Not responsible for

savings being achieved or guaranteed

● No vested interest over the long-term


Financing & Funding Sources

Schneider Electric’s PC Approach:

Provide Options and Support● Municipal-lease financing,

bonds, or cash● Schneider Electric can help

procure financing packages● Maximum rebates,

incentives, and additional funding mechanisms

EnergyManagement


As Capital Funds are Available● Financing clients’

responsibility ● Client has responsibility of

researching/applying for additional funding/grants


City of Denison Case StudyDenison, TX

Project Cost$7,943,747

Guaranteed Annual Savings

$217,727

• Improvements to their Aeration Basin & Aerobic Digester including new fine bubble diffusion grids

• Replacement of 750 hp of blowers and 400 hp of pumps• Replacement of 3 old switchgear/MCC’s with Sq D switchgear• Lighting, EMS, HVAC

Project Scope

Project Enablers• City Manager (CFO) was a proponent; had previous experience

elsewhere with PC• Proposed improvements were already known issues• Budget $ already set aside for some improvements


Example Water ESPC Project

1

Current Energy Budget - $694,378

$544,073

$90,000

$60,305

Energy Bill

Energy EfficiencyImprovements

Equipment Repairs &Replacements

After PC

Water Plant – 10MGD – Surface Water

• Annual Energy Use and O&M Costs = $694,378

ECMs –

• Rebuild 3 – 450HP turbine pumps

• New high efficiency motors and drives on finished water

• Upgrade of SCADA system

• Upgrade of filter valve actuators

• Upgrade of chemical feed

ECM Costs = $2,423,918

Rebates/Grants/Incentives = $270,000

Guaranteed Annual Savings = $150,305 – 15 Yr Contract


Measurable Benefits


Measurable Benefits of Energy Management


Benefits of Energy Quantified in dollars other applicable method

Cannot manage what you do not measure. Power is approx 1/3 of O&M costs

Passively, 2-5% of energy bill due to Hawthorne Effect; know you are watching. Actively using PM, results will vary significantly. DoE white paper showed non-metered projects achieved 70% of estimated savings while monitored projects achieved 115% of anticipated savings.

Quantify equipment utilization; including seasonal variations

Avoid capital outlays for additional transformers, etc. by optimizing use of existing equipment.

Quantify equipment utilization; including seasonal variations

Eliminates the time and expense of manually performing load study measurements. Save $1,500-5,000 for each study.

Verify utility billing practices and ratesSavings is usually minimal; however, we have found up to 10% errors. That would equate to over $300,000 annually for an 80 MGD WWTP.

Provides the necessary data to negotiate better rates with utility

Have seen reductions of 47% ($/KWH) in deregulated markets

Identify energy consumed by your various processes; this is necessary in order to optimize them. Recommend power metering down to the MCC feeder level. This can be accomplished using electronic motor overload relays such as the Tesys-T with the power expansion module.

EPA estimates the following savings are available: Drinking Water: 5-15% from Motors, Drives, Pumping System Improvements, 10-20% from Process Optimization & Control Strategies. Wastewater: 10-20% from Equipment Upgrades and 10-20% from Process Optimization. However, you have to monitor these various feeds to determine the impact of the improvements. A typical 10 MGD WTP could save more than $168,000/year

Feeder level power metering facilitates participating in utility load shedding by providing adequate load information.

Utility load shedding varies by area, but can be $15 per kW-month, or approx. $60,000 per year for shedding 1MW.





Identify energy losses due to harmonic losses. More equipment today than ever creates harmonics: Ultraviolet disinfection, Ozone Generation, VFDs

Harmonics create heat in motors and transformers, shortening their useful life significantly. They can also create vibrations in the motor shaft and other issues such as resonance.

Identify contributors to energy penalties related to peak demand charges

Base rate ($/KWH) can be increased up to 100% and is fixed for 1-3 years, depending on your contract.

Identify contributors to energy penalties related to poor power factor

Utilities charge penalties up to 100% of base rate for PF less than 90, adjusted monthly

Identify contributors to energy penalties related to high harmonics

Utilities charge penalty up to 100% of base rate, adjusted monthly

Identify potential problems prior to failure; increase system reliability

Reduced labor rate (Straight time vs. overtime), reduced acquisition costs (book price & expedited freight), reduced downtime (scheduled vs. catastrophic failure), reduced possibility of spillage or being out of compliance (EPA fine of $15,000 per day, individual operator loses their license; Dekalb County had a $50,000 fine for 10MG spill blamed on equipment failure)

Logs, trends and records events for quick troubleshooting

Reduced labor costs, reduced downtime, reduced possibility of non-compliance. (10-25% minimum)

Disturbance direction detection can reduce mean-time-to-rectify

Reduced labor costs, reduced downtime, reduced possibility of non-compliance. (10-25% minimum)

Remote access allows experts to evaluate issues

No travel time or expense, reduced downtime, reduced possibility of non-compliance, spillage, etc.





Built-in communications allows for remote, automatic data acquisition

Eliminates need for manual meter reading, also eliminates errors. Savings depends on number of meters and distances required to travel. See ROI calculator tab.

View system status & reports, do diagnostics via web browser

Reduces number of software licenses required. (Minimum $595 per seat)

Can import power data into existing SCADA systems

Allows for basic meter data inclusion in SCADA screens and in standard reports without purchasing and learning additional software. Approx. $3,000 savings (includes cost of SI creating additional SCADA screens)

Capture and document power problems (dirty power, transients, sags, swells, lightning, grounding issues)

Can be reimbursed by utility for damaged equipment only if you can prove problem came from them. On average, 30% of power quality and reliability problems come from outside the end-users' facilities.

Identify excess capacity and balance loads Early detection and alarming Protect against loss by making necessary correctionsImplement energy awareness program Save energy. See Cost Savings tab below.Analyze usage patterns Save energy, minimize demand peaksManage peak usage Avoid setting new demand peaksPower monitors watch & alarm on "out of tolerance" events, send alarms to pager, etc.

Save time (60-70% of downtime to identify and find problem, only 30-40% to fix it). Maintenance crews dispatched to right place knowing what to expect.

Sequence-of-Events Recording (SER) for event reconstruction

Pinpoints root cause of failure. Eliminates trial-and-error method of event reconstruction, which may damage equipment by reclosing breakers into faults in order to localize problem.





Gain business intelligence, benchmarking, best practices

Reduce operational costs. EPA estimates 10-20% energy savings is available from process optimization in both water and wastewater treatment plants.

Can monitor all utilities (Water, Air, Gas, Electricity & Steam)

Simplified, consolidated reporting and analysis tool. Can be done in power monitoring software or existing SCADA software.

Automated generator testing and documentation

An improper generator test is as bad as not testing at all. Load them enough for long enough to avoid wet-stacking and other problems that cost you time and money. Reduces labor hours and training costs required to test generators properly. 8 hours per month. Insures generators will work when needed. Once per week for 1 hour x 2 technicians x $20/hr/tech x 52 weeks = $2080/year.

Monitor standby generators including fuel supply

Assures that backup capability is ready. Reduces downtime due to power outages, thereby reducing possibility of a critical process failure resulting in a spill, etc.

Identify supply side faults

EPRI study found that the average power problem from an external source cost industrial users $5,000 per occurrence. Minimize time-consuming investigation(s) after an event; share a "digital photograph" of the event with utility company.

System-wide monitoring of plants & pump stations

Tie into existing SCADA network to minimize costs. Implement PM/PQ software to maximize benefits.





Remotely trip breakers and verify that contacts are open with no voltage on the bus.

Reduces personnel exposure to arc fault situations. On average, 260 people die each year in workplace electrical accidents; that's 5 per week. The cost is incalculable. Lawsuits could be in the millions of dollars. Also eliminates the need to suit up in PPE.

Peak-shave using standby generation

Avoids setting higher demand charges, which can be as much as 100% of the base rate ($/KWH). There are some locations in which EPA has limited the use of generators for this purpose due to emissions.

Power quality event reporting for events that may affect computers and electronics (control system & SCADA components)

Reduce unplanned downtime and possible non-compliance due to electronics failures. EPA fine of $15,000 per incident, plus possible loss of operator's license.

Remote monitoring of UPS statusProvides failure warning, thereby avoiding I&C loss during power outage. Avoids wastewater spills from loss of status, loss of control. Can be used on remote pump/lift stations.


Who Cares?

Operations Maintenance Engineering Consultants Systems Integrator

Reliability Fewer EPA fines due to increased system uptime. Fewer surprises.

PQ Event alarming, Predictive maintenance UPS status,

Load studies, Equipment utilization, Balanced loads

System reliability is greater than without PM hardware, software & training.

System-wide monitoring of plants & pump stations

Energy Efficiency

Reduce operating costs through benchmarking and best practices

Establish baseline energy data from various processes. Benchmark your improvements.

Take lead role in showing municipalities how to reduce their energy usage and their carbon footprint

Energy trending, reporting and benchmarking done via SCADA and Historian

Cost of Energy

Verify billing, Rate negotiations, DR, Demand charges, Load shedding, PF & Harmonics penalties,

Analyze usage patterns. Determine alternate operating schedules to minimize energy costs.

Consultants can help their customers by specifying power monitors be tied into software systems

Cost of Repairs

Supply side faults, Predictive vs. reactive, Isolate harmonics,

Harmonic analysis: heating, vibration and damage to equipment

Minimized Downtime

Problem identification, Direction detection, Remote access, SER, Logs, trends & waveforms,

Safety Arc Flash: Remotely trip breakers, verify no voltage present

Increase potential safety of electrical systems

Engineering Expertise

PowerLogic can monitor system for you. Warn of new demand peaks.

Schneider Electric can augment your maintenance staff with PM/PQ experts.

Schneider Electric can augment your engineering staff with PM/PQ experts.


$0 $75,000 $150,000 $225,000 $300,000

Wilshire 5000

S&P 500

US Treasury 5 yr.

Energy SavingsMeasures

Jan 1997 to Dec 2002

What is the Best Investment of $100,000 in the last 10 years?

Amounts shown exclude return of initial investment


Summary


We have seen that Energy Management is an effective tool for:• Improving electrical system reliability• Reducing the possibility for “stuff in the streets” or boil water

advisories• Identifying and Reducing energy consumption• Lowering energy costs• Lowering maintenance costs• Verifying utility bills• Getting reimbursed for supply-side damages• Improving safety, reducing exposure to arc flash• Meeting EPA’s desire for energy benchmarking in W/WW

facilities

What is that worth to your organization?


Conclusion

1.Energy Management is an ongoing process, not a one-time event

2. W/WW Energy is one of the biggest expenses of all municipalities

3.Getting started isn’t as hard as you might have thought

4. Zero capital Investment options are available

5. There are very many financial aspects to Energy Management


Questions?

Mark LeinmillerSegment ManagerWater Wastewater Competency Center

225 Townpark Drive, Suite 400Kennesaw, GA 30144Office: 770.792.4842 | Mobile: [email protected] www.schnedier-electric-water.com

mailto:[email protected]

http://www.schnedier-electric.com/

46

Make the most of your energy™

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Benefits of Energy Management Presented by Mark Leinmiller.

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