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Initiating and Sustaining Your
Energy Efficiency Program
Timothy Dantoin
Senior Engineer
September 10, 2013
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Energy | Environment | National Security | Health | Critical Infrastructure
Today’s Agenda
• Energy Efficiency in Perspective
• Consumption, Capacity & Uncertainty
• Energy Management System
• Typical vs. Best in Class
• ISO 50001
• Practical & Strategic
• Homework – for developing your Energy Program
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Energy | Environment | National Security | Health | Critical Infrastructure
200
250
300
350
400
450
500
2007 2015 2020 2025 2030 2035
Energy in PerspectiveProjected Worldwide Consumption
Source: EIA International Energy Outlook 2010
OECD Non-OECD
Quadrillion
BTU 6x84 %
14 %280
458
245249
1,000,000,000,000,000
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Energy | Environment | National Security | Health | Critical Infrastructure
U.S. Coal Capacity Build Rate
~2.3 GW added
in 2011-12
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Energy | Environment | National Security | Health | Critical Infrastructure
U.S. Coal Capacity - Net
~8.5 GW retired
in 2011-12
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Energy | Environment | National Security | Health | Critical Infrastructure
Coal Capacity Build Rate Comparison
China v U.S.
US – 5GW
China – 55GW
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-
10,000
20,000
30,000
40,000
50,000
60,000
1988 1991 1994 1997 2000 2003 2006 2009
Energy Competitiveness
Energy Consumption (Btu) per Dollar of GDP
China
BrazilUS
India
Germany
Source: EIA International Energy Statistics 2012
% Change
(1988 to 2011)
China 50%
India 22%
US 33%
Brazil -20%
Germany 34%
China vs. US
1988 2011
5 to 1 3.5 to 1
1 lb coal = 10,000 btu
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Energy | Environment | National Security | Health | Critical Infrastructure
Carbon Footprint
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Energy | Environment | National Security | Health | Critical Infrastructure
Market Ready ?
United Kingdom United States
Pepsi Co
?
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Energy | Environment | National Security | Health | Critical Infrastructure
Efficiency as a Resource
Source: Alliance to Save Energy, August 2010
cumulative avoided annually since 1980
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• Understand Energy Uses
• Quantify Opportunities
• Select Projects
• Provide Justification
• Gain Approval
• Implement Projects to Save $$
• Generate EE Ideas
Awareness
Planning
Communication
Goals
Support
Motivation
Performance Tracking
A purely technical focus goes only so far
Energy Management
Continual Improvement Approach
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Energy | Environment | National Security | Health | Critical Infrastructure
Characteristics of Effective Programs
•Strong leadership & resource allocation
•Corporate culture that recognizes value of EE
•Sub-metering & internal energy cost allocation
•Energy assessment of all capital projects
•“On the fly” production adjustments for EE
Source: Kamen, James A. 2002. “Energy Management Practices Provide
Manufacturing Advantage”. Energy User News.
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Energy | Environment | National Security | Health | Critical Infrastructure
Understanding ISO
• From the Greek isos meaning equal
• International Organizations for Standardization
• Created in 1947 to…"to facilitate the international
coordination and unification of industrial standards".
• By mid-1960’s growth in international trade created
further demand for standardization across boarders.
• ISO 9001 emerged in 1989 to standardize a variety of
different national quality management systems
• Environmental accords reached at Rio Earth Summit in
1993 lead to publication of ISO 14001 in 1996
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Common ISO Technical Standards
Shipping Containers – ISO 6346
Film Speed – ISO 9848
Credit Cards – ISO 7810
Fastners – ISO 2
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Common ISO Management Standards
• Quality – ISO 9001
• Customer Satisfaction – ISO 10003
• Environment – ISO 140001
• Food Safety – ISO 22000
• Social Responsibility – ISO 26000
• Information Security – ISO 27001
• Supply Chain Security – ISO 28000
• Risk Management – ISO 31000
• Energy Management – ISO 50001 – June 2011
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Energy | Environment | National Security | Health | Critical Infrastructure
Principle of Continual Improvement
• Plan – establish objectives and make plans to achieve them
• Do – implement your plans (do what you planned to)
• Check – measure your results and compare to objectives
• Act – adjust your objectives or improve your plans
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ISO 50001 - PLAN
• Legal & Other Requirements – identify L&OR applicable to
organizations energy use.
• Energy Review – analyze energy data, identify significant
uses & prioritize opportunities for improvement
• Energy Baseline – define period to serve as basis for
comparison of performance
• Energy Performance Indicators – a quantitative measure of
energy performance
• Objectives & Targets – energy performance improvement
goals to be achieved by the organization
• Action Plans – tasks and timetable achieving objectives &
targets
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ISO 50001 - DO
• Competence, Training & Awareness – to ensure employees
& contractors know responsibilities for energy management
• Communication – implement processes for internal &
external communication about the EnMS & energy
performance
• Documentation – document and control EnMS information
• Operational Control – plan and carry out operations
associated with SEU’s
• Design – consider opportunities for energy performance
improvement in new or modified facilities, equipment or
processes
• Procurement – make energy performance a factor in
purchasing decisions involving significant energy uses.
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Energy | Environment | National Security | Health | Critical Infrastructure
ISO 50001 – CHECK & ACT
• Monitoring, Measurement & Analysis – assess key
characteristics of activities that determine energy performance
• Evaluate Compliance – with applicable legal & other
requirements
• Internal Audit – verify that the EnMS is functioning as
intended and generating the intended results
• Corrective & Preventative Actions – identify and correct
problems
• Records Control – maintain information about activities &
results
------------------------------
• Management Review – periodically review with senior
management EnMS and energy use performance
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ISO 50001 & Energy Management
• 4.2.1 – Top Management
o Approve an energy policy
o Appoint a management representative
o Empower an energy team
• 4.2.2 – Energy Management Representative
o Ensure implementation of the EnMS
o Report to top management on energy performance
• 4.5.2 – Training & Awareness
o Ensure that anyone impacting SEUs is competent
• 4.7.1 – Management Review
o At planned intervals top management shall review the EnMS
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Energy | Environment | National Security | Health | Critical Infrastructure
ISO 50001 & Energy Performance
• 4.4.3 – Conduct an energy review
o Analyze energy use and consumption
o Identify areas of significant energy use (SEUs)
o Identify and prioritize opportunities for improvement
• 4.4.4 – Establish an energy baseline year
o Period for which reliable data is available
o Identification of a period prior to beginning energy improvements
o Determination of when active energy management began
o Satisfaction of stakeholder and/or certification body mandates
• 4.4.5 – Identify & monitoring indicators of performance
• 4.4.6 – Establish objectives, targets and action plans
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Barriers to Effective Energy Management
• Other Priorities (quality, safety, production)
• Energy Taken for Granted (“It works…don’t fix it”)
• Lack of Data (about energy use and drivers)
• Narrowly Focused (“talk to the facilities guy”)
• Lack of Awareness (about opportunities & methods)
• Insufficient Resources (finances & staff time)
• Lack of Organizational Infrastructure (sustainability)
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…in Theory
• Management Commitment…
• Energy Champion…
• Energy Policy…
• Energy Team…
• Measure & Monitor…
• Report & Communicate…
• Set Energy Savings Goal…
• Implement Projects…
…in Practice
…Management Concern
…Another “Hat” for Someone
…Nice Words – No Teeth
…Another &*#@ Meeting ! !
…No Payback on Sub-Meters
…Monthly Actual vs. Budget
…Based on What ?
…Competition for $$
The Ideal Meets Reality
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Energy | Environment | National Security | Health | Critical Infrastructure
Strategic Energy Management
• Bridge between energy management in
theory & practice
• Starts from the top AND the bottom
• senior management commitment
• identifying energy saving opportunities
• Embed energy matters into organizational
decision-making
• Following the money
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Energy | Environment | National Security | Health | Critical Infrastructure
SEM….moving forward
• Understand Energy – who, what, where
• Opportunity Identification – find the savings
• Prioritize Implementation – fighting for capital
• Performance Indicators – track the results
• Embed Energy – management infrastructure
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Understand Energy - Facility Profile
Energy in Business Context
ElectricityPropane
Natural
Gas
No.2 Oil
Total Btu’s
3.14%% Increase in Profits with 5%
Reduction in Energy Costs
62.75%Energy as % of Profits
$3,450,000Annual Profits
6.46%Energy as % TF Costs
$33,500,000Total Facility Costs
14.43%Energy as % Oper. Costs
$15,000,000Operating Costs
$2,164,782Total Energy Cost
(Annualized)
2006Business Indicators
$0.52Water $ p Lbs Resin
$5.29Tot Energy $ p Lbs Resin
0.339Gas MMBtu p Lbs Resin
$2.53Gas $ p Lbs Resin
0.180Electric MMBtu p Lbs Resin
$2.76Electric $ p Lbs Resin
408,858Lbs Resin
(Annualized)
2006Key Performance Indicators
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Energy | Environment | National Security | Health | Critical Infrastructure
Electrical
MMBtu
Chiller #1Chiller #2Chiller #3LightingComp AirOfficeOther
Understand Energy - Equipment Profile
Estimating Energy Use
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Energy | Environment | National Security | Health | Critical Infrastructure
e.g. “Free Cooling” Project
Save 2.5%
Chiller #1Chiller #2Chiller #3LightingComp AirOfficeOther
Electrical
MMBtu
Finding Opportunity - ECMs
Finding Opportunities
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Opportunity Catagories
• Comfort Heating
• Comfort Cooling
• Compressed Air
• Dehumidification
• Fans
• Hydraulic
• Lighting
• Motors
• Process Cooling
• Process Heating
• Pumps
• Refrigeration
• Steam/Hot Water
• Vacuum
• Ventilation
• Wastewater treatment
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Energy | Environment | National Security | Health | Critical Infrastructure
Prioritizing (right side)
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Energy | Environment | National Security | Health | Critical Infrastructure
Prioritizing (left side)
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Energy | Environment | National Security | Health | Critical Infrastructure
Tracking Performance
Energy Performance Indicators (EnPls) – a measure
of energy intensity used to gauge effectiveness of
your energy management efforts.
Baselining - comparing plant or process
performance over time, relative to its measured
performance in a specific (i.e. baseline) year.
Benchmarking - comparing performance to
average or established best practice level of
performance against an appropriate peer group.
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Energy | Environment | National Security | Health | Critical Infrastructure
Energy Efficiency vs. Energy Intensity
Efficiency – amount of
output per unit of energy
Intensity – amount of
energy per unit output
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Energy | Environment | National Security | Health | Critical Infrastructure
Energy Use Drivers
Production volume
Weather
Building occupancy
Square feet
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Base Load
Variable Load
Production Level or
Heating D.D.
Total
Energy
Use
EnPI – Simple Regression
y = mx + b
m = energy per variable unit
b = base load
R2 = correlation coefficient
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• Total kWh = (0.3257kWh per Lb x Total Lbs) + 258,748 kWh
• Assume Total Lbs = 1,000,000 then Total kWh = 584,448
• At $0.075 per kWh, energy cost = $43,834
• Or, $0.044 of electrical energy per Lb of output
y = 0.3257x + 258748
R2 = 0.8449
400,000
450,000
500,000
550,000
600,000
650,000
700,000
750,000
600,000 800,000 1,000,000 1,200,000 1,400,000
kWh
Extrusion Output (Lbs)
EnPI Example
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• EnPIs, as indicators of performance, should be at the core
of your communication efforts to senior management as
well as production staff.
• Communicating energy efforts and performance is vital for
generating awareness, responsibility and action.
• Effective energy management involves changing
organizational culture and individual mindsets.
EnPI– Reporting The Results
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Energy | Environment | National Security | Health | Critical Infrastructure
Embedding Energy
• Gap Analysis – understanding the gap between
theory and your current management practice
• Management Plan – turning the gaps into action
items
• Infrastructure – the procedures and
requirements that make energy relevant to the
rest of the organization
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Energy | Environment | National Security | Health | Critical Infrastructure
• U.S. EPA’s Energy Star Program
• Provides program and facility level assessments• http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index
• U.S. Dept of Energy SEN Leaders Tool
• Provides assessment against ISO 50001
• DOE eGuide for ISO 50001
• designed for step-by-step implementation of ISO 50001
• https://save-energy-now.org/EM/SPM/Pages/Home.aspx
Gap Analysis
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Management Plan
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Energy | Environment | National Security | Health | Critical Infrastructure
Management Infrastructure
• Follow the Money
• Purchasing – commodity and distribution
• Use – utility bill and internal cost allocation
• Planning – energy implications of capital requests
• Establish Responsibility – carrots n sticks
• Energy Champion
• Energy Users
• Plant Management
• Energy Accounting
• Significant Uses
• Opportunities
• Performance
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??? ISO 50001 / SEP ???
Prioritization Toolquantify, track and report
on energy saving
opportunities
Management Planturns gap analysis into
specific actions for
improvement
Strategic Energy Management
Senior Managementchange concern to commitment
Effective Energy TeamIt all starts here
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Energy | Environment | National Security | Health | Critical Infrastructure
Characteristics of Effective Teams
• Develop concise action plans that are regularly updated
• Address technical & management aspects of energy
• Act as opportunities arise
• Measure existing conditions & impact of change
• Engage other employees as needed
• Have effective meetings
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Energy | Environment | National Security | Health | Critical Infrastructure
Effective Team Meetings
Meet frequently for no more than 1 hour
Set and keep a fixed day and time (e.g. 2nd Tuesday)
Maintain meeting “pace” (i.e. don’t dwell on one subject)
Members define next project task & due date
Spread task responsibilities (burn-out vs. buy-in)
Rotate responsibility for new efficiency ideas
Do NOT invite vendors to meetings
Address continual improvement (i.e track & communicate)
Use laptop & projector for real-time notes & calcs
Keep energy use in perspective
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Team Meeting Minutes
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Energy | Environment | National Security | Health | Critical Infrastructure
Project Savings Calculations
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Energy | Environment | National Security | Health | Critical Infrastructure
Energy Efficiency in Perspective
Global in Scope The Bottom Line
Your Focus
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Homework
• Energy is what percent of your operating costs ?
• How does your company allocate energy costs ?
• Do you assess energy impacts of capital projects ?
• Has your company established an energy goal ?
• Do you have an energy team; is it effective ?
• What are the savings from identified projects ?
• Have you developed an EnPI for your company?
• Conduct a gap analysis?
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Contact Information
Tim Dantoin, Senior Engineer
Science Applications International Corp
Cell: 920-366-3744
Email: [email protected]