7106_T5 VTM Training Day 1

Preliminary Assessment • Selecting EE measures based on › Financial profitability › Ease of implementation › Risk analysis › Client willingness ›… 101

Walk through audit report Objectives › Summarize the findings of the WTA stage › Convince the facility owner to get on board › Make it reader-friendly and comprehensive for busy managers › Submit a professional and to-the-point presentation 102

WTA report Report StructureContent › Executive summary › Current characteristics and operations of the facility › Brief description of electrical and mechanical systems › Energy consumption summary › Proposals and recommendations for energy-saving measures › Conclusion 103

WTA report• Be careful if disclosing specific information: › Detailed specifications of proposed equipment (e.g., lighting replacement by model, brand or wattage) › Technical data (e.g., temperature control modifications)• Several ESCOs have lost project opportunities by giving too many details to the facility owner › Facility owner may try to do it on their own 104

Energy Audits: Investment Grade Audit 105

Well-known M&V Protocols Purpose & Characteristics• IGA for ESCO and facility owner decisions› typically associated with an Energy Performance Contract• Develops a high level of certainty that› savings will be achieved› project cost will be exactly covered (for closed pricing contracts)› project cost will be close to reality (for open-book contracts)• Develop solid business case to support discussion for financing 106

Context and Expected Outputs• 2-4 month period (typical) to produce an IGA • May vary significantly depending on project size (up to one year for large - multiple buildings) • Effort (mid-size facility) • 2 – 3 weeks on site, 4 – 5 weeks at office• Facility assessment, analysis and savings projections supported by measured data• Accuracy: -5% savings, +5% costs • Inaccuracy in cost must be covered by contingency for closed-book contracts 107

Context and Expected Outputs • Typical report 60 to 90 pages • Clear definition of the baseline (not only the historic energy bill) • Description of proposed measures • Transparent calculation of energy savings • best practices but not the only ones found in the market • Outline of the technical design sufficient for cost evaluation • Project costs (equipment + implementation, etc.) • Project risk assessment • Project M&V strategies 108

Off-Site Data Analysis Energy Bill Analysis • Most often already done at the WTA stage • A more in-depth analysis may be advisable • summary of bills and averages • sanity check (pattern coherence of last 3 years) • power factor penalties • subscribed demand adequacy • error and irregular patterns • Calculate usage factor: kWh/ m2 for heating, cooling, lighting, etc. 109

Well-known M&V ProtocolsOff-Site Data AnalysisBenchmarking › Benchmarking is interesting to help analyze the facility’s performance, but… › …Statistics are statistics • you cannot compare a statistical average to your facility without using the unique characteristics of the targeted facility › Some tools are being developed: • Energy Star Portfolio Manager for USA and Canada • http://www.energystar.gov/buildings/facility-owners-and-managers/existing- buildings/use-portfolio-manager/new-energy-star-portfolio-manager • Case study: A secondary school way above average… 110

Well-known M&V ProtocolsOff-Site Data AnalysisDrawings and Specifications Analysis • Compile list of equipment (lighting, motors, boilers, chillers) • to be verified during site visit • in preparation for energy end-usage analysis and energy balance • Revise control drawings and operation schedules • it is usually much better if you can obtain the as-built plan and schedule from the control manufacturer • Revise manufacturer’s specs • Chillers, boilers, compressors, pumps, fans, motors • when available • if unavailable, measurement can be considered 111

On-Site Survey – Interview / Meetings Meeting with Facility Manager› Confirm elements that are strategic to them • comfort & lighting level improvement • reliability of operation • equipment rehabilitation • more accurate process control • cost reduction, etc.› Confirm open channel of communication› Solicit access and collaboration 112

On-Site Survey – Measurement Measurement Campaign • Audit will be part of contractual documents for EPC • Measurement is very important • to determine individual equipment on field performance • to create baseline for equipment • Measurement is very important for calculation precision and future references • Measurement is costly; no need to measure everything • more later on the simplified estimation method 113

Measurement Campaign › Confirm key values: flow rate, power, combustion Lighting meter efficiency, lux level time of use - do not take drawings and specs at face value for an IGA Source: esis.com.au - case study: heat exchanger shortfall of savingsInstall short- and medium-term loggers › Useful for peak demand analysis › Usage pattern (what energy is used out of normal operating hours) › Confirm the energy usage of variable load equipment (e.g., variable-speed drives, equipped fans or pumps) 114

Analyze Collected Data• Assemble and analyze all data from › document review › take-off of on-site data › measurement campaign• Objectives: › Determine the actual on-site efficiency of the main systems › Prepare an energy balance of the facility 115

Energy Analysis by Usage: ElectricityEnergy usage and demand calculationsMethod A : kW loading › This method must be used for constant load equipment • lighting • fixed flow and head pump • single speed motors 2 OPTIONS: A-1: Equipment nameplate nominal power x Assumed loading factor A-2 : Direct kW measurement 116

Energy Analysis by Usage Method B for Electricity: Current-Voltage Method › Option B-1 : From nameplate • from nameplate data (e.g., coolers, small motors, appliances) when kW load is not known • nameplate information: amps, volts and phase • load and power factor are estimated › Option B-2 : From measurement • measured amps and volts: good info on loading • power factor: estimated Note 1: Auditors generally do not repeat the voltage measurement on each equipment as it does not vary much in the same mechanical room or facility Note 2: Power factor is assumed 117

Energy Balance› Establish historical energy consumption of equipment› Compare load and consumption evaluated from survey and measurement campaign data with the billing› Benchmark with average building and with best practice • know where you stand in terms of consumption› Reduce the risk of overestimating or underestimating savings› Evaluate demand and consumption per end-use 118

Energy Balance Conversion Factor to kBtuInput Unit 1 kWh 3.412142 Combined Fuel End-Use BreakdownInput Unit 2 therms 100 Air Compressors gallons 91.33 Venti l a ti on 1%Input Unit 3 (propane) Refri gera ti on 3% 1%Combined Output Units kBtu 1 Water Cooki ng Pumps 6%Building Gross Floor Area 99,999 1% Hea ti ngFloor Area Units ft^2 5% Input Energy Units Combined Energy Use Cool i ng 10% gallonsEnd Use kWh therms (propane) kBtu %Air Compressors 85,304 1%Cooking 25,000 - 6% Pr oc es sCooling 1,017,870 18%Heating 36,000 - 9,800 1,521,800 10%Lighting (Exterior) 4,452,455 28%Lighting (Interior) 445,996 -Miscellaneous 233,578 1%Office Equipment 699,993 20,640 1,269,304 8%Other Plug Loads 3%Process 68,455 - 511,448 8%Pumps 1,197,170 7%Refrigeration 371,996 - 1,044,105 18%Ventilation 2,761,972 1%Water Heating - - 5,600 1% 192,871 3% 350,856 - 131,367 5% 501,580 305,997 - 772,059 Other Plug Loads 7% - 27,620 Hea ti ng Office Equipment 28% 56,525 - 8% 38,500 - 146,999 - 22,000 6,970Total Estimated 2,568,316 55,229 15,400 15,692,885 100%Historical Billing 2,575,020 56,800 15,500Percent of Actual 14,466,334 Lighting (Interior)Total per ft^2 99.7% 97.2% 99.4% 8% 25.7 0.6 0.2 Sour10c8e.5%: ASHRAE 156.9 Mi s cel l aneous Lighting (Exterior) 3% 1%Assumptions / Notes / Conclusions 119

IGA Report Objectives› Record all baseline information - energy usage, associated equipment and operating mode› Present the refined evaluation of the energy savings potential and project cost • compare with the WTA preliminary assessment› IGA: ESCO is comfortable guaranteeing savings and cost› The facility owner receives a detailed report highlighting the proposed project and analysis 120

IGA Report Structure › Executive summary › Introduction › Facility function and operation › Equipment and operations of the facility › Energy bills of the facility › Energy efficiency proposals and recommendations › Summary and balance › Conclusion 121

Energy auditing as a tool for marketing, projectdevelopment and risk management for VTMs• Builds relationship with client• Introduces Energy Efficiency, RE, EnMS into the conversation• Identifies potential for the client and the VTM for EE, EM and RE• Reduces risk due to improved knowledge of process and baseline 122

Module 7Monitoring & Targeting 123

What is Monitoring & Targeting?• Measuring your energy consumption• Identifying & Monitoring trends in consumption• Identify what causes those trends• Developing ‘Baselines’ against which to monitor performance• Monitoring performance against the Baseline• Looking for Opportunities to improve energy performance based on the data• Reacting to the data in order to optimise energy performance 124

Why M&T?• Enable an understanding of your energy consumption data• Identify underlying factors which impact upon consumption• Set appropriate targets that allow you to review performance• Identify avoidable waste or other opportunities to reduce consumption. Result Take Measure action Information Data Analyse 125

What can effective M&T achieve?• Detect avoidable energy waste• Quantify savings achieved• Identify opportunities for improvement• Provide feedback for staff awareness• Improve budgeting & benchmarking• Set performance targets for your organisation 126

Measuring Energy Performance 127

Measuring Energy Performance - Precedent Based Methods • Consumption for this period compared with consumption for a previous period • Maybe previous month • Maybe same month in previous period • Useful if no identifiable driver of energy consumption • Annualised consumption trends remove seasonality 128

What does this tell us?18,000 Monthly gas consumption (kWh)16,00014,000 12912,00010,000 8,000 6,000 4,000 2,000 0 129

Same data in annualised view Annualised gas consumption (kWh)84,00082,00080,00078,00076,00074,00072,00070,00068,00066,00064,000 130 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 130

Measuring Energy Performance – Activity/Driver based methods• Usually energy consumption goes up an down due to various ‘Drivers’• These need to be taken into account in measuring energy performance• Space Heating – external temperature (HDD)• Production Process – output, product mix• Air Conditioning – HDD, Humidity• Drying – quantity of water removed from product 131

Typical example  Which was the worse energy performance? Foundry industry 132 UNIDO EnMS training 132

Typical example continued Worse Better 0.80 50.87 Foundry industry 0 133 UNIDO EnMS training 133

Scatter diagramkWh/week1,600 • Represent consumption VS 1,400 relevant variable 1,200 1,000 • See the trend 800 • Observe the dispersion 600 400 • Obtain the formula 200 y = 18,572x + 167,84  Remember: Y= mX + c 0 R² = 0,8926 0 • c and m are constants 20 40 60 • X is a measured “relevant vCaDriaDb1le5 variable” 134 UNIDO EnMS training 134

Understand and interpret results • Intercept: • What does the intercept mean? This is an indicator of consumption when all the variables are 0 at the same time. • It is and indicator of the baseload in most of the cases, unless that case is outside of the model range. 135 UNIDO EnMS training 135

Understand and interpret results• What does R2 mean?: % of variation in consumption that correlates with the variation in the variables. So if R2 is 0.9 it indicates that there is 90% correlation.• This may mean that the variable is responsible for 90% of the variation in energy consumption – you need to use common sense in looking at the results – the correlation doesn’t necessarily mean that the variable is driving energy consumption• If R2 is low – say 0.1 – but logically it should be higher – e.g. average external temperature should be driving thermal energy consumption – it could indicate that your consumption is very poorly controlled so there are opportunities for energy saving here 136 UNIDO EnMS training 136

Example: glass furnaceFixed 220,000 VariablekWh per week 355 kWh per tonne 137 UNIDO EnMS training 137

Weather-related energy demand Energy consumption varies because of the weather in many industries  Space heating and cooling  Cold stores  Industries with refrigeration as an SEU  Clean rooms in pharmaceuticals, microelectronics, etc. Is it feasible to relate energy consumption directly to outside-air temperature? 138 UNIDO EnMS training 138

Heating Degree Days (HDD)& Cooling Degree Days (CDD)• “Base temperature”: • HDD base: outside temp. above which no artificial heating is required. CDD base: outside temp. below which no artificial cooling is required. • Default in the UK & IRL 15.5ºC (Austria is 12C) • Other countries differ: Lower HDD base in countries with high standards of weatherisation • Depends on the building construction and internal heat gains • Can be calculated in a daily/monthly/yearly basis. 139 UNIDO EnMS training 139

How to get HDD and CDD?• www.degreedays.net 140 UNIDO EnMS training 140

How to get HDD and CDD? City name and press Station Search Choose stationChoose data options Generate Wait and download 141 UNIDO EnMS training 141

What use is all of this data?• Forecasting• Measuring savings overall• Measuring savings of particular projects• Identifying departures from norm for investigation• Setting Targets• Benchmarking UNIDO EnMS training 142

Forecasting• Predicting or estimating future energy consumption• Predicting future energy costs• Estimating savings from: • Energy saving projects • Operational control • Monitoring and corrective actions 143 UNIDO EnMS training 143

Monitoring Performance Data from 2011 used to develop the expected consumption formula Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 144 UNIDO EnMS training 144

Monitoring Performance Actual consumption in 2012 Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 145 UNIDO EnMS training 145

Monitoring Performance Expected consumption is the BASELINE. It is the consumption that we should have if the performance is the same as last year, based on the relevant variables Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 146 UNIDO EnMS training 146

Monitoring Performance The Energy Perfomance Coefficient is the Actual Consumption divided by the expected consumption Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 147 UNIDO EnMS training 147

Monitoring Performance The actual savings are the difference between actual consumption and expected consumption For example, in January we saved 26682 kWh Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 148 UNIDO EnMS training 148

Monitoring Performance The actual savings CUSUM are the cumulative savings from the beginning For example, from January to June we saved 198320 kWh Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 149 UNIDO EnMS training 149

Monitoring Performance The target consumption is the consumption we want to have. For example, the target here is to save 2.5% Expected consumption = 116344.22+(517.27*CDD5)+(1594.81*Cured) 150 UNIDO EnMS training 150