Training of Trainers_TOT

What is NEB? Any real or perceived financial or intangible benefit generated by an energy efficiency activity. 101

The result of the energy audit• Industry juice production: • Energy consumption:• Electricity 10.000 MWh• Heavy fuel oil 43.000 MWh• Proposals• Compressed air 750 MWh (elec.)• Cooling 635 MWh (elec.)• Lighting 235 MWh (elec.)• Process 3.500 MWh (h.f.o.)• Is this the right focus? 102

What are NEBs (co-benefits, total value of energy projects)Ref. 103

How can NEBs be assessed?• Use the values from research 2.5• Questionnaire• Exact calculation 104

How can NEBs be assessed ?• Questionnaire: • Change, with positive value • Change, with negative value • Change, do not know value 105

How can NEBs be assessed ? 3• Calculation: • Identify and describe the benefits associated with a given measure. • Quantify the impacts. • Assess for which benefits a monetary value can be established. • Assess which benefits have positive, negative or neutral values. 106

Do NEBs make a difference?What do you think? 107

Case Study – Pump Research from Danish project concludes that coating can: - Protect a new pump from corrosion and erosion and improve energy efficiency. - Renovate and protect existing pumps, bring the pump back to year zero, and improve its energy efficiency compared to new unit. - Improved energy efficiency, 3-29%. - Extended lifetime, 2-3 times So you save energy, however the value of the reduced maintenance and downtime is worth much more.See: http://www.eeee.org/conference_proceedings/eceee/2007/Panel_7/7.295/Industrial electricity use for pumps in DK - 10% 108

Case Study - Production of Liquid Gasses• If the temperature of the cooling water goes up, it has a great influence on energy consumption when producing liquid gasses.• Systematic metering, introduced in connection with the implementation of EMS, indicated rising temperatures over time due to smudge on the heat exchanger.• In spite of chemically treating the cooling water.• What to do?• Special investigation pointed toward the installation of an ozone unit together with a sand filter.• Result: temperatures decreased by 1-2 degrees compared to the situation before. 109

Case Study - Production of Liquid GassesSavings due to lower cooling water temperature:• 153,000 kWh/year or USD 12,000•Payback 3.6 yearsHowever, ”what did the company achieve besides savingenergy?”Reduced:• Use of chemicals USD 50,000/year• Corrosion inhibitor USD 12,000/year• Reduced corrosion USD 20,000/year• Reduced labour cost not calculated• Reduced down time not calculated• Reduced enviromental influence not calculated• Better working enviroment not calculated• Pay back less than half a year 110

Workshop:What happens if you switch from halogen to LED in ashop? 111

What do you achieve besides saving energy? • Reduced maintenance LED life 25,000 hours, halogen 1,000 hours. • Reduced procurement and installation costs. • Reduced air-conditioning. • Less heat from LED, less air-con leads to less energy consumed by air-con, less time for air- con means less maintenance and extended life of air-con. • LEDs do not change colour of cloth, which means less clothes has to be put on sale. • LEDs reduce fire risk • LEDs do not warm people up, which means people stay in the shop longer.  • LEDs give the shop a green image. 112

Workshop form groups with 2-3 people in each.10 min for group work, 5 min for presentation.• G1- Steam traps• G2 – Improve insulation• G3 - Improve boiler efficiency• G4 - Reduce steam demand• G5 - Improve condensate recovery• G6 – Implement a leak seek program for compressed air• G7 – Use high-efficiency motors• G8 – Implement energy efficient design• G9 – Improve building insulation (envelope)• G10 – Replace filters in ventilation units due to pressure drop over the filters• G11 – Use automatic light controls systems• G12 – Use sun protections on buildings 113

How to attribute monetary value to NEBsSteam audit Saving possibilities Energy One by one, the NEBs are discussed with the responsible department. For Steam trap Maintenance example, you ask the maintenance people management what steam trap maintenance leads to: Quality - reduced make-up water - chemical procurement Productivity - better steam quality Health and - etc. For each benefit, discuss if it is possible to Safety attribute monetary value to the benefit or Etc. not. If yes, calculate it. If not, assess whether the benefit is positive or not. 114

ExerciseEach group discusses the NEBs for which they have identified thepossibility of calculating a monetary value. If it is not possible, eachgroup discusses whether it has a positive, neutral or negative value forthe company. 115

How to understand an organisation 116

Organisational StructureIn general, an organisation consists of:• A group of people• Working together with a common purpose• To satisfy a series of objectives and carry out all those activities which contribute to objectives. 117

Ingredients for SuccessOrganisations can vary in size from a small business with a fewemployees to a large multinational company with offices throughout theworld and employing tens of thousands of people.The three fundamental resources of any organisation are: • People • Organisation • TechnologyThe success of an organisation is determined by how well it manages andcontrols these three resources. 118

Focus on OrganisationBusiness organisations must manage and control four internalfunctions: • The Production group produces the goods or services. • The Sales and Marketing group sells the products or services. • The Personnel or Human Resources group hires and trains workers. • The Finance and Accounting group seeks funds to pay for all these activities and tracks accounts. 119

Organisational StructureMost organisational structures are hierarchical by design.The structure consists of a number of layers moving from the top tothe bottom of the structure. As the number of personnel in each layerincreases, the amount of responsibility decreases. 120

Functional Specialisation• Tasks are grouped together on the basis of common functions such as human resources, sales and finance. This is the traditional organisational form Managing DirectorMarketing & Sales Purchasing Research & Finance Finance & Accounting Personnel Production 121

Product or Service SpecialisationTasks and activities related to a particular product or service are groupedtogether. This form of specialisation is common within the public sector. A localauthority groups its activities together in departments such as Housing,Education, Local Taxation, etc. Such specialisation allows for the developmentof expertise on the product or service. Chairman & Managing DirectorCorporate Corporate Director Director Director Corporate Finance Personnel Men's Wear Women's Fashion Children's Wear Marketing Director Director Director Division Divison Personnel Chief Works Sales Manager Manager Manager Accountant 122

Organisational StructureThe type of structure adopted by an organisation depends on several factors including:• The size and complexity of the organisation.• The diversity of the products produced and services provided.• The geographical spread of the organisation.• The activities carried out by the organisation• The objectives and goals established by the organisation. 123

Tall Hierarchical Structure• This is the traditional structure adopted by large public limited companies, the military and the civil service.• Roles are clearly defined within a large number of layers, each responsible to the layer above. 124

Tall Hierarchical Structure• This tall hierarchical structure is suitable for large organisations with centralised decision making by strategic staff.• Organisations with a tall structure are likely to be slow to change as important decisions have to be referred all the way up the line.• Decisions take a long time to be made and take even longer to implement.• Senior staff can be very remote from the lower levels of the structure. 125

Tall Hierarchical Structure 126

Horizontal Structure• An alternative is the horizontal structure.• There are fewer layers, but the spans of control are much greater.• Parts of the organisation may tend to operate independently of the other parts but are still under the umbrella of senior management.• Employees have more responsibility which often leads to greater motivation. 127

Horizontal Structure• Since departments are specialised, different departments may have little to do with each other, which can lead to poor communication across the organisation.• Control of top management can be weakened because they have a greater span of control and need to delegate more frequently.• Fewer levels usually means there are fewer prospects for promotion. 128

Horizontal Structure• The flat structure is becoming more popular. It allows considerable independence to different units, which means that these units can make decisions and change more rapidly. 129

Levels of an Organisation’s Structure strategic tactical• There are generally three levels of personnel in a business operational organisation (although there may be many more layers).• The strategic level (management) consists of senior management responsible for long-term planning and policymaking decisions.• The tactical level (information workers) consists of middle management in charge of one particular department or area of the business. Examples are regional sales managers or training managers. Planning at this level is medium term.• The operational level (production workers) consists of the workforce that makes the products, takes sales orders, keeps accounts, etc. Operational managers include foremen, supervisors and charge hands. Planning is short term, often daily or even on a minute-by- minute basis. 130

How to communicate within an organisation?• Classroom exercise• Discuss the status of the energy manager?• Who else is affected by or involved in energy consumption? 131

The company's overall plans: (questions)• Mission: • What is the company's mission? • What is the company's raison d’être? • What is the company's main objective?• Vision: • What is the company's vision? • What are the company's long-term goals? • Where would you like the company to be in 5 years?• Strategy: • What is the company's strategy? • How will you achieve the company's long-term goals? • What is the company's long-term plan? • Value basis: Can you attempt to describe the company's values? • What values are important to your business? • What would your company like to be known for? 132

Value creating ?• Operational level: • What do your customers expect from you? • What expectations does management have of you? • What should you do to provide good service in your job? • What are and describe your most important working times? • What are and describe your 3 main criteria for success? • What are and describe your 3 biggest challenges in relation to What would make your life easier? • What would increase your personal effectiveness? • How could you improve your workflow? • What can be done to reduce the problem (defined)? • What can be done to reduce error rates? • What opportunities/threats do you see in the energy efficiency work in the company? • What expectations do you have to us? • What are the most important selection criteria when you purchase equipment or start projects in your organisation? 133

Value creating ?• Tactical level: • What expectations do your customers have of your department? • What expectations does management have of your department? • How do you define good quality/service? • Describe your department's criteria for success? • Describe your department's 3 biggest challenges? • How do you implement the company's overall plans? • Describe your own criteria for success? • Describe your department's 3 main strengths/weaknesses? • Describe the main workflow/process in your department? • Describe the 3 main strengths/weaknesses of your workflow/process? • How could you improve workflows/processes? • What opportunities/threats do you perceive in this new energy efficiency work? • What do you expect from us as consultants for this company ? 134

Value creating ?• Strategic level:• Describe how you experience your situation in the market?• What do your customers expect from you?• Please describe your company's 3 biggest challenges?• What does your customers judge your business on?• Describe your 3 main strengths/weaknesses?• What do you see as the most obvious opportunities in the market?• What do you see as the greatest threats in the market?• How to differentiate positive from the nearest competitor in your business segment ?• What makes the nearest competitor better than you?• What do you need to do to increase growth?• What will improve your image in the industry?• What can help to promote development?• What expectations does the Board of Directors have of you?• What do you see as your greatest strategic challenge? 135

Unique selling points of EMS in Pakistan 136

Unique selling points of EMS?• For 20 minutes, the groups discuss and prepare what can be unique selling points of EMS in Pakistan and prepare a PowerPoint presentation.• 10 min to present the PowerPoint.• Discussion. 137

ENPI Indicators 138

Purpose of Energy Metrics • Objective support for decision making: • Often subjective reasons • We need to know how much energy we are using. • We need to know if performance is improving or not. • We need to know if we are meeting targets. • We need to be able to verify savings generated by improvements. • We need to establish the following: • Baseline • Baseload • Energy Performance indicators (EnPIs) • Numerical basis. 139

Energy Metrics• Various levels of complexity• Simple: • Simple: consumption last month vs same month last year. • Simple: compare actual consumption with budget. • Simple: annualised trend of cost and consumption. • More complex (but beware!) • Energy use per unit output. • Cooling energy per cooling-degree day. • Specific energy consumption (SEC). • Regression analysis is usually the only way. • Same principles apply to EnPIs and verification of savings. 140

What does this tell us? 141

Same gas data in annualised view 142

Annualised Trend • Moving total of previous 12 months (or 52 weeks, etc.). • Removes seasonal effects. • Gives a real view of comparison vs budget. • Effects of a change stay for next 12 periods. • Absolute numbers • No allowance for changing drivers or activity levels. • Very useful for forecasting, you can quickly judge what next 12- month use will be. • You need to correct for known changes in output or other. 143

Beware of Simple Ratios• Energy use per unit of output (energy intensity) • e.g. kWh/T of product. • Useful in energy-intensive industries for benchmarking internally and externally. • Beware in others, especially in cases with large baseloads. • Almost of no value in judging energy performance. • Usually tracks output better than energy. • Energy Efficiency (energy in compared with energy out) • E.g. boiler efficiency is a useful indicator, but beware: • Decreasing boiler load through pipe insulation, leak repair or demand management will almost always result in reduced boiler efficiency due to lower loads. • Overall system efficiency will improve but not boiler efficiency. 144

Other Indicators to Be Careful of • Specific Energy Consumption (SEC) • For example, air compressor SEC will usually increase if leaks are repaired or demand reduced. • This does not mean you should not reduce demand. • It means that care is needed in the use of this indicator. • Coefficient of Performance (COP) • Used as a measure of refrigeration plant performance. • = cooling load (kW) / electrical power to compressor (kW). • COSP = cooling load (kW) / power to compressors plus auxiliary loads such as fans and pumps. • Often reduces as load reduces (centrifugal compressors can be an exception). 145

What does this tell us about energy performance?Do organisations really make decisions based on this?Source: Vilnis Vesma 146

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Checking Performance • You cannot manage what you do not measure. • This is not the whole story. • It is not enough to know how much you used. • CRITICAL QUESTION: Was it more than necessary? • ISO 50001 requires the organisation to compare actual with expected energy use. 148

Problem: things make consumption vary • Weather • Daylight availability • Production throughputs • Mileages • Occupancy • Etc. • Terminology: drivers, independent variables, energy factors • All mean the same, decide which you will use. 149

Exercise: How to get the drivers? Sales? • Business case car producer, form groups of 6 • Play the role of different department headsEnvironm Production? ent ? • Production Drivers • QualityMainten- • Finance ance? Quality? • Maintenance • Environment Financial? • Sales • Develop a list with possible drivers that could affect energy consumption seen from the perspective of the department. Note why this driver has an influence. • Prioritise them according to which ones might have the biggest influence. 150