Webinar: Energy Data - The New Profit Lever

THE NEW PROFIT LEVER ENERGY DATA

WEBINAR brought to you by:

August 6, 2014

Speakers

Erik Becker SVP

Janie Jefferies-Freer President

Alisdair McDougall Analyst

Agenda

1 | Discuss why firms are investing in energy management software

2 | Review where your organization can look for savings

3 | Demonstrate dashboard examples and partner case studies from eSight

4 | Q&A

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Q&A at the end of the presentation Slides & recording will be sent following the webinar

Presented by Alisdair McDougall

5

Energy Data – The New Profit Lever

Alisdair McDougall, Verdantix

Alisdair McDougall is an Industry Analyst in the Energy Practice at Verdantix’s London office. In this role he leads Verdantix research on energy management software and industrial technologies. His previous experience includes working for the energy and sustainability team at Peter Brett Associates, a development and infrastructure consultancy. Alisdair holds a Masters in Energy and Environmental Engineering from the University of Cambridge, as well as a Bachelor of Engineering from the University of Cambridge.

Agenda

•  Why are firms investing in energy management software?

•  Where should your organization start looking for savings?

There are four main drivers for firms investing in energy management

Economics

Customers

Sustainability

Legislation

How firms normally think about these four drivers

10

Customers

Sustainability Legislation

Economics

How firms should actually think about these drivers

Customers

Sustainability Legislation

Economics

Cost savings are driving investment in energy management

Source: Verdantix The State Of Global Corporate Energy Management

How do you cut costs if you can’t see where they are?

Access to good quality granular data is the first step to uncovering previously invisible opportunities

Energy management is increasingly becoming data driven

Data technology investment Site-specific Integrated energy systems

Data governance level Departmental Enterprise

Energy data size Small, patchy Big, global

Tactical energy management (1990 – 2007)

Strategic energy management (2015 – 2020)

Energy data feed frequency Low frequency Near real-time

Data aggregation & consolidation

Portfolio & strategic risk management Organizational requirements

Source: Verdantix Smart Innovators: Big Energy Data Analytics

The second step is organising all of this newfound data. Corporates should invest in a data management solution to avoid a new headache

Don’t just take our word for it. Your peers are already placing significant focus on improving energy data collection and reporting

Source: Verdantix The State Of Global Corporate Energy Management

Access to energy data aids with multiple strategic and tactical business objectives

CEO • Achieve competitive advantage on energy consumption • Efficiency Business Planning

CFO • Minimize financial risk • Business efficiency

CSO • Innovate and lead on energy & sustainability

COO • Minimize operational costs • Maximize operational efficiency

CIO • ICT Infrastructure energy efficiency • Maintain performance

Energy/ Facilities

• Minimize costs • Streamline billing • Energy asset efficiency

CSR

• Report progress on energy metrics • Streamline reporting process

EH&S

• Streamline compliance process • Achieve certification

Logistics

• Logistics energy asset efficiency • Asset inventorying

Procurement

• Manage contracts • Minimize procurement risk

Supply Chain

• Report supply chain energy metrics • Streamline data collection

Source: Verdantix Smart Innovators Energy Management Software

Combining data, analytics and some good old fashioned brain power will result in your firm finding potentially significant savings

Agenda

•  Why are firms investing in energy management software?

•  Where should your organization start looking for savings?

Initially, firms should focus on three main savings opportunities

1.  Energy efficiency opportunities within existing portfolio

2.  Savings from better managing energy data for internal and external reporting purposes

3.  Supply side savings associated with optimizing procurement strategies and better managing existing utility contracts

Energy efficiency opportunities within existing portfolio

Lack of a Strategic Energy Management Strategy

2) Inactive relationship with third parties -  FMs not contracted to deliver savings -  Remote monitoring and management not

considered -  Lack of consultation with systems integrators

over potential support services

1)  Ignorance of full breadth of system capabilities

-  Incompatible scale of delivery equipment -  Unmaintained delivery equipment -  Under-utilization of BMS functionalities -  BMS not integrated with other systems

4) Ad hoc or non-existent optimization procedure -  Lack of maintenance programme -  Ad hoc system commissioning and software

upgrades -  No performance targets

Condition Challenges

Potential Building Energy Efficiency Savings

Source: Verdantix Toolkit: Business Case For Building Energy Management Software

Savings from better managing energy data for internal and external reporting purposes

Immature Reporting Function

1) High level of compliance risk -  Vulnerable to increasing number of

regulations relating to building energy performance (CRC, NGERS, etc.)

-  Subject to administrative concerns around capture and reporting of correct data

3) Non-central management of energy data -  Reliance upon multiple spreadsheets with

disparate data -  Time-consuming collection and analysis of

useful information

2) Rising stakeholder pressure to disclose -  Not equipped to handle uptake of

voluntary sustainability reporting (CDP, GRI, etc.)

-  Increasing stakeholder requirements to disclose energy data to reap brand benefits and satisfy RFPs


Potential Reporting Savings


Supply side savings associated with optimizing procurement strategies and better managing existing utility contracts

Ineffective Energy Supply Management

2) Uncorrected utility billing errors -  Duplicate, incorrect, or anomalous utility

bills that lead to overpayment -  Inability to easily identify mistakes due to

lack of estimated bills

1)  Non-optimal tariffs -  Higher than ideal electricity prices based

on firm’s consumption profile -  Not able to take full advantage of load

management opportunities such as demand response

3) Inability to accurately forecast spend -  Not equipped to account for dynamic

conditions such as electricity prices -  Low-quality data as a result of partial,

missing or untimely meter readings


Potential Supply Side Savings


$24,533,784

$22,038,310

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Tota

l Cos

ts ($

)

Year

BAU Total Costs Vs. Total Costs With Software

Costs To Business Without Software (BAU) Costs To Business Including Cost Of Software

Combining all of these opportunities can result in significant savings

Total savings including the cost of software is

$9,531,041

Calculate your baseline for energy consumption and spend and continue to monitor it taking into account price fluctuations and portfolio growth. The true value of your investment can only be appreciated if you can compare life with software and life

without software.


The list of potential benefits from investing in energy management software does not stop there either

Reducing CAPEX by improving asset

utilization

Reducing OPEX through improved management and

maintenance regimes

Reducing external data assurance costs

Strengthening carbon risk

management and accounting

Managing on-site generation and load

management programmes

De-risking decisions on energy efficiency

investments

Enhancing brand value through

communicating sustainability performance

Engaging employees on energy and

environmental issues

Improved employee comfort and working

conditions

Formalizing energy management programmes

throughout an organization

Strengthening operational risk

management

Better employee utilization

Walmart is looking to use energy efficiency projects to positively impact the bottom line

•  In 2013, Walmart committed to producing or procuring 7 billion kWh of renewable energy annually by 2020 along with reducing energy consumption by 20%

•  It is estimated that both of these initiatives once fully implemented will save Walmart $1billion annually in energy savings

•  In 2013, Walmart recorded profits of $17 billion at a 3.6% profit margin

•  To generate an extra $1 billion in profit (Walmart’s expected annual energy savings) Walmart would have to increase revenues by $28 billion

Key Lessons Learned

28

•  There are four main drivers for firms investing in energy management

•  Customers, Economics, Sustainability, Legislation

•  Access to quality granular data is the first step to uncovering opportunities

•  Combining data, analytics and some good, old-fashioned brain power will result in your firm finding potentially significant savings

•  The list of potential benefits from investing in energy management software is limitless, extended across all departments within your organization

Urjanet Verdantix Webinar 2014 Janie Jefferies-Freer, President [email protected] 847-701-2340

Janie Jefferies-Freer

Janie Jefferies-Freer is the President for eSight Energy Inc. Originally from Cambridge, UK, Janie joined the eSight Energy Group in 2004 where as Sales Director, she was responsible for managing eSight’s EMEA sales and marketing teams. Janie relocated to the US in 2008 to establish eSight’s U.S. HQ and is now based full time from Chicago where she oversees the company’s growth and strategic direction in the Pan-American market. In 2013, eSight Energy Inc. won the British American Business Council’s award for Innovative Company of the Year and was also named an Enterprise Smart Grid leader by Groom Energy. More recently in 2014 eSight was named as a leader in Energy Management software by Verdantix.

•  eSight Energy is a global energy management software (EMS) company

•  Founded in 1998 our HQ for the US is in Chicago IL

•  Our EMS solution, eSight is in use in over 30 countries globally

•  We have the most comprehensive energy analysis, and dashboard solution combined available, worldwide

•  eSight is suitable for use by clients of any size or sector

•  The software is available as a SaaS solution, or installed to site

About eSight Energy

Challenges of energy projects

•  There are many challenges involved with

implementing an energy project

•  One of the biggest is how to get the data

•  There are multiple utilities (electricity, gas, water)

•  There is often little or no submetering

•  Projects to implement submetering can be costly,

resource heavy and time consuming

•  They can be seen as complex

•  This is often all to off-putting and companies

choose to do nothing rather than take this on

Challenges of energy projects

•  However, the problem is:

•  Without any visualization of data there is no way

to get a handle on what’s being used

•  Energy costs are often one of your organizations

heaviest operating costs

•  Without awareness, energy usage often rises,

and rises…

•  You can’t manage what you can’t measure

•  So what if this data was literally “served up” to

you?

Urjanet – Data Made Simple

•  With a simple subscription fee, our clients get access to their data

•  This could be energy data associated with bills or meters interval data

•  Day+1 data means that clients have access to their information a day

behind, instead of 45 days behind

•  Actions on normal bill processes at this rate mean that it’s often too

late to take action

•  The data also provides key demand information and trend granular

data

How does an EMS Solution Work?

Exception Report

Optimize Analyze &

Report

Identify Energy Usage

Data Collection

Collect data for some weeks or months

Monitor consumption across site and identify how energy is being used

Analyze data and produce intelligent reports to inform site staff

Optimize the control process, reduce set points, turn systems off and reduce base load

Product automatic exception reports to prevent slip-back or Performance Drift

How does an EMS Solution Work?

0

20

40

60

80

100

120

140

160

180

0 4 8 12 16 20 24

Cons

umpt

ion

kWh

The overall objective is to drive down consumption and costs

How do we use the data we get?

Billing data enables: ü  Anomalies to be checked ü  Trends to be analyzed ü  Comparison with interval data for your own

checks

ü  Is your usage rising over time? ü  What cost impact does this have on your

business ü  Track savings as they are made

How do we use the data we get? – Interval Data

Interval data provides an infinitely wider range of analysis opportunities: 1.  Baselining – knowing where I have come

from, means knowing where I should be going 2.  Targeting to reduce 3.  Monitoring Performance 4.  Normalizing for external factors 5.  Tracking total savings

Leveraging the data – Some Examples

Leveraging the data - Trends

Leveraging the data – What about Dashboards?

The key informa?on can be pushed into individual user dashboards to monitor trends and provide quick access to must-‐have data

Leveraging the Data – What about Dashboards?

“The lights are on but nobody’s home...”

•  Monitor out-of-hours and baseload energy use to quickly detect anomalies such as:

•  Water leaks

•  Machinery left online

•  Heating or air conditioning active when not necessary

•  Computer stations left on

•  Address these anomalies to prevent energy waste

Tip #1 – Baseload Analysis

•  In the initial test, Liberty Property Trust used Baseload Analysis to recognize energy waste in out-of-hours periods

•  While in their pilot, Liberty identified 5% savings on $30 million utility expense providing payback in 12 months!

•  As of October 2012, Liberty has achieved:

ü  17.9% Reduction in Energy

ü  $4.6 Million in Savings

ü  48 LEED Projects

ü  98 ENERGY STAR Labels

Tip #1 – Baseload Analysis – Who’s Doing It?

Spot the difference...

•  Recognize areas of high usage within your organization

•  Monitor the efficiency of machinery and equipment by recognizing abnormal usage and changes in general trends

•  Use this information to target areas to undertake efficiency programs, make investments and accurately forecast ROI

Tip #2 – Recognize High Usage

•  Bombardier Aerospace used energy management software to monitor energy use at their Dunmurry Plant

•  By recognizing high usage they were alerted to faulty solenoid valve in the autoclave cooling circuit

•  The cost to fix the valve was $80

ü  But realized a cost saving of $160,000 – 15.4% of the site total

Tip #2 – Recognize High Usage – Who’s Doing It?

Set the benchmark... •  Benchmark energy use against model sites to emulate successes

•  Normalize this information against factors such as degree days to ensure fairness

•  Compare energy use against government defined standards to measure how your building should be performing

•  Compare sites against each other in a league table to encourage healthy competition!

Tip #3 – Measure Against Best Practice Models

•  The American Society of Hematology measured utility consumption against LEED building performance standard

•  Active performance management resulted in improved efficiency over the predicted LEED baseline.

•  Overall efforts resulted in:

ü  9% reduction in electricity

ü  19% reduction in water usage

ü  40% carbon footprint reduction

45.44

7.61

40.88

7.51

0

20

40

60

Electric Gas KBTU

/ Squ

are foot/

year

Adjusted Energy Model Actual Consump?on

Tip #3 – Measure Against Best Practice Models – Who’s Doing It?

Know your limits... be alarmed!

•  Set limits against your energy meters to define tolerance levels

•  Alarms will be activated if consumption goes outside of these limits for prompt response

•  Quickly be alerted to faulty machinery/equipment through anomalies in consumption or missing data

•  Limit energy waste and negative effects on your organization by having the knowledge to respond to problems

Tip #4 – Set Alarms Against Defined Limits

•  Carlsberg use range and average alarms to notify them when energy consumption goes outside tolerated levels or deviates from set alarm profiles

•  Keeping an eye on high energy and water use, they were able to significantly reduce their usage:

ü  Reduced kWh per hectolitre by 14%

ü  Reduced site water usage by 10%

ü  Reduced effluent costs by 16%

ü  Reduced overall consumption by 10%

Tip #4 – Set Alarms Against Defined Limits – Who’s Doing It?

Lead the way... •  Promote your energy savings to staff, visitors, customers and the public to encourage their

participation in saving energy

•  Convert energy savings into tangible facts to make data more accessible, example:

We’re a health club... We’ve saved enough electricity... To power 100 treadmills

Tip #5 – Promote Your Savings

•  The Ricoh Arena, a London 2012 Olympic venue, displays an interactive dashboard in the reception foyer

•  The dashboard includes up-to-date energy savings information alongside news, weather and travel feeds

•  Staff and visitors can monitor progress and adapt their habits to contribute to further savings

•  The arena can promote energy initiatives and the savings made as a result- enhancing its reputation as a socially responsible venue

Tip #5 – Promote Your Savings – Who’s Doing It?

An Energy Management Platform can:

•  Reduce energy consumption, costs, & carbon emissions by up to 30%

•  Save time in creating energy reports

•  Automatically identify anomalies for fast response

•  Simply calculate payback and ROI on investments

•  Get all of your data into ONE PLACE!

•  Normalize data based on external factors that could be affecting usage

•  Raise Awareness throughout the organization

…Excel is not a solution!

Urjanet is the world’s first provider of automated utility data as a service. We deliver the Big Energy Data that large enterprises, government agencies, and educational institutions rely on to make smarter

more profitable & eco-friendly energy decisions.

Who is Urjanet?

We provide value across the organization

ACCOUNTING PROCUREMENT FACILITIES & ENERGY MGMT SUSTAINABILITY

Reduce costs through automation

Reduce late fees

Avoid shut-offs

Create enterprise repository of rich energy data

Tariff analysis

Bill validation

Budgeting

Risk management

Energy audits

Efficiency projects

General analysis

Carbon reporting

Tracking greenhouse gas emissions

LEED certification

Investments in alternative energy

Our Solutions

URJANET UTILITY DATA

URJANET METER DATA

URJANET WEATHER DATA

URJANET ALERTS

A single source of multi-site billing data for

electricity, natural gas, and water

A cost-effective way to access detailed

demand-side data without installing sub-

meters

Hourly, site-specific data available for North American

locations

Immediate notifications of energy usage and

accounting deviations based on current and past

billing data

Join us for:

FREE REGISTRATION at urjanet.com/spark-2014

WHO Energy management software and services

professionals, Fortune 500 executives, members of the Urjanet community

WHAT 1.5 day energy conference with speakers,

cocktail reception, awards ceremony, expert panel, Solutions Zone, and more

WHEN October 8-9, 2014

WHERE Georgia Tech Hotel & Conference Center

THANKS FOR TUNING IN!

Recording will be emailed to all registrants shortly.

Webinar: Energy Data - The New Profit Lever

Technology

Transcript of Webinar: Energy Data - The New Profit Lever