EMS Implementation training

Critical operating parametersEach SEU has operating parameters which affect its energy useThese need to be identified, quantified, recorded and communicated, monitored and controlledBoiler examples: • Pressure, Total dissolved solids (TDS), stack temperature (variable), stack O2, condensate return rate, feedwater tank temperature • Refrigeration examples: • Delivery temperature, condensing temperature (temperature lift), evaporator and condenser approach temperatures, • Compressed air • Pressure, dryness, pressure drops 51

Critical operating parameters 52

Maintenance criteria 53

Energy Audits (assessments) ER1. Energy bill and sub-meter dataER4. Identify drivers, get ER2. Analyze past, ER6. Review operationaldata and analyze SEUs present and future control for all SEUs energy useER5. Develop baselines 54and performance ER3. Identify & quantifyindicators for each SEUs Significant Energy Users (SEUs) ER7. Technical energy audits ER8. Identify opportunities for improved performance, review and decide on action plans

System OptimisationChallenge Review end Review Review Review energy use and operational distribution generation service equipment consumption control system and systems 55

Examine potential for renewables and alternative energysourcesWhich renewable sources are available? • Solar (thermal or photovoltaic) • Wind power • BiomassWhich renewable technologies are economical with these resources?Which alternative energy sources are available? • Waste heat recovery • Fuel switchingWhich might be economical? • Cogeneration (Combined Heat and Power (CHP) 56

Develop and maintain an opportunities list ER1. Energy bill and sub-meter dataER4. Identify drivers, get ER2. Analyze past, ER6. Review operationaldata and analyze SEUs present and future control for all SEUs energy useER5. Develop baselines 57and performance ER3. Identify & quantifyindicators for each SEUs Significant Energy Users (SEUs) ER7. Technical energy audits ER8. Identify opportunities for improved performance, review and decide on action plans

Opportunity List (Key Concept #5) Develop a list of all potential ideas Select items for implementation • Prioritisation Plan and manage their implementation Note: the name of this list doesn’t matter alternatives include: • Savings Register • Opportunities list • ECO Register 58

Which opportunities to implement? 59

Relationship 60

Sample targetsID Description Resp Target Date Status 31 Dec20111 Train all boilers operators on energy efficient JB 1 comp operations 31 Dec 2011 83%2 Carry out 4 energy awareness training MM 31 Dec 2011 sessions3 Increase condensate recovery rate to 90% JB45 61

Measurement and Verification (M&V)How will you demonstrate that you actually made the savings?Need to take account of driving factorsDifferent levels of M&V for different opportunities depending on scale and complexity.Usually applied to each individual action plan itemCan also be confirmed using EnPIs 62

Focus of SEUs ER1. Energy bill and ER6. Review operational sub-meter data control for all SEUs ER4. Identify drivers, get data and analyze SEUs ER2. Analyze past, 63 ER5. Develop baselines present and future and performance energy use indicators for each SEUs ER3. Identify & quantify Significant Energy Users (SEUs) ER7. Technical energy audits ER8. Identify opportunities for improved performance, review and decide on action plans

Targets and action plans EnPis How we measure if we are being successfulAction plans (kWh) Target (kWh)How we are going to What we want toachieve it achieveSource: Gen Europe 64

Management Management Six Key Conceptsparticipation Responsibility 1. Commitment Management Review Yes • Roles and Responsibilities Policy 2. Significant Energy Users (SEUs) Planning 3. Energy Performance Indicators (EnPIs) Checking Implementation 4. Opportunities List & Operation 5. Operational ControlDay to day 6. Reviewoperations 65

Winner culture ? 66

What can be achieved by behavioralchange ? 67

From US the superior energy performance 68

From a petro chemical site 69

Idle electricity 70

Experience’s from UNIDO EMS program in Turkey duringlast 9 monthsSavings through improved operating parameters6% saving in Natural Gas (Automotive)4% saving in Electricity (Plastics)4% saving in Natural Gas (Textiles)5% saving in Electricity (Construction Products)3.5% saving in Electricity (Packaging) 71

Discussion what did companies do tosave energy ? 72

What makes energy management deliver savings ? 73

How can an energy efficent culture be created ?Assign someone to be responsible, then .. BUT!!!!!Step 1 – Get top managementcommitment• Get the management commitment• Asses the company culture• Establish an agreed common understanding of what shall “our energy culture” be• Pave the road for the implantation 74 74

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Environment competitivenes 76

How can an energy Efficent culture be implemented ?Step 2 – Introduction Agenda kickoff meeting• Inform and engage employees What are we doing?• Address obstacles and difficulties Why are we doing it? How will an behavior change help usStep 3 – Implemtation Who is leading the effort? Who else is involved?• Integrate into all elements of the business such as What key information do you need? procurement, design, maintenance procedures an What energy commitments have we made? What are our significant energy uses? Why are significant energy uses important? Why do your actions matter? What are the benefits of improved energy performance? Awareness is key to our success! Whats next ?ENPi’s 77 77

How can an energy Efficent culture be created ? Step 4 – Evaluation and monitoring • Evaluate and monitor • Communicate results • Celebrate and reward successes • Extend or modify activities 78 78

See you in one hour! 79

Exercise – develop a plan for this building ER1. Energy bill and sub-meter dataER4. Identify drivers, get ER2. Analyze past, ER6. Review operationaldata and analyze SEUs present and future control for all SEUs energy useER5. Develop baselines 80and performance ER3. Identify & quantifyindicators for each SEUs Significant Energy Users (SEUs) ER7. Technical energy audits ER8. Identify opportunities for improved performance, review and decide on action plans

See you in 15 minutes! 81

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 of improvementsWe need to establish the following: • Baseline • Baseload • Performance indicators (EnPIs)  Numerical basis 82

Target Setting• Ratio: Dangerous. Only useful if there is no baseload and there is only one relevant variable. •In the other cases, without saving energy, just doing the same: •If production increases, the ratio improves. •If production decreases, the ratio gets worse.• Annual consumption does NOT take into account production and weather changes.• Regression analysis takes ALL the significant VARIABLES. 83

What does this tell us?Electricity Trend 84

Same electricity data in annualised view 85

Previous electricity data vs Production 86

Annualised trendMoving total of previous 12 months (or 52 weeks, etc)Removes seasonal effectsGives a real view of comparison v 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 months use will be • You need to correct for known changes in output or other 87

What does this tell usabout energyperformance?Do organisations reallymake decisions basedon this? Mes MWh Ton MWh/ tonJanuary 2008February 2009 96 118 0,814 45 52 0,865Source: Vilnis Vesma 88

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 the boiler efficiency 89

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 shouldn’t 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 auxiliaries loads such as fans and pumps • Often reduces as load reduces (centrifugal compressors can be an exception) 90

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 91

Regression targetThe most reliable way.Reduce the coefficients an “x” %. 92

Straight line formulaY = mX + CEnergy (E) = Factor (F) * Driver (D) + Constant (c)E = FD+cIn the previous case:Electricity = 7,379.3 * HDD + 607,140This formula can be used to predict expected consumption for any given driverWe can compare predicted v actual usage to indicate performance 93

Corporate targetTarget: Reduce 3.5 % (kWh/tonnes)Analyse production and consumption (2012)• Production (2012): 4,336,603 Tonnes• Elec Consumption (2012): 39,286,575 kWh• kWh/tonnes(2012): 9.06 kWh/tonnes• Corporate target: 8.56 kWh/tonnes• But, kWh/tonnes is NOT a good indicator, so what dowe have to do now? 94

Corporate targetEstimate next year productionFor example, let’s say that we estimate a 20% less production than in 2012.We can update that number during the year.• Estimate Production (2013): 3,469,282 tonnes• Corporate target (2013): 8.56 kWh/tonnes• Corporate target in kWh: 29,700,650 kWh 95

Estimate consumptionRegression analysis: Elec (2012)= (682.39 * CDD0)+(5,342.06 * Production)+ 944,754.42Regression StatisticsMultiple R 1.00 Look for the most reliable regression analysis you can findR Square 0.99Adjusted R Square 0.99Standard Error 116712.45Observations 12 df SS MS F Significance F 2Regression 9 1.29E+13 6.43E+12 472.0104711 7.73E-10ResidualTotal 11 1.23E+11 1.36E+10 1.30E+13 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 7.05E+05 1.18E+06Intercept 944757.4282 1.06E+05 8.91E+00 9.24835E-06 1.16E+03 2.20E+03CDD0 4.50E+03 6.18E+03Production 1682.3979 2.29E+02 7.35E+00 4.3414E-05 5342.0677 3.72E+02 1.44E+01 1.62982E-07 96

Estimate ConsumptionBased on the regression analysis and: - A 20% reduction in production every month - Assuming that the weather will be the same as it was in 2012. Estimated consumption (2013): 34,653,289 kWh 97

Difference between expected and actualActual from billsExpected from regression formulaIndex = Actual/Expected Highlighted cells are when index > 1 98

Monitoring & Targeting 99

The main messageEstablish relationships between energy consumptions and appropriate energy variablesSingle or multivariate regressionUse these to calculate expected consumption based on production activity, prevailing weather etc.Thereby detect unexplained deviations 100