Transcript Energy Management - Wisconsin Industrial Energy Group

Wisconsin’s Focus on Energy
Program Update and Best Practices
John Nicol, PE
Industrial Program Manager
November 8th, 2007
Best Practice for Energy Management

Strong leadership & resource allocation

Culture that recognizes value of EE

Sub-metering

Energy assessment of all capital
projects

“On the fly” adjustments for EE
Source: Kamen, James A. 2002. “Energy Management Practices Provide
Manufacturing Advantage”. Energy User News.
Energy in Context –
Global Consumption
Mature Market Economies
140
120
100
Quadrillion
BTU
3.5x
Transitional Economies
Emerging Economies
80
60
40
20
0
2002
2010
2015
2020
2025
US Energy Consumption (EIA)
(quadrillion Btu)
US Energy Production by Fuel (EIA)
(quadrillion Btu)
US Electricity Production (EIA)
(quadrillion Btu)
US Electricity Production (EIA)
Increased Energy Prices and Volatility
Energy Prices
20
18
Energy Price ($/MBtu)
16
14
12
10
8
6
4
2
Electricity
Source: ACEEE from EIA 2007
Fuel Oil
Natural Gas
07
Ja
n-
l-0
6
Ju
06
Ja
n-
l-0
5
Ju
05
Ja
n-
l-0
4
Ju
04
Ja
n-
l-0
3
Ju
03
Ja
n-
l-0
2
Ju
02
Ja
n-
l-0
1
Ju
01
Ja
n-
l-0
0
Ju
Ja
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00
-
Coal
Climate Change Impact
Arctic sea ice in 1979
Arctic sea ice in 2003

Powerful scientific consensus on global warming

Damage already occurring

Much worse lies ahead, including risk of abrupt changes

Major reductions (60-80% by 2050) needed to avoid
dangerous warming
Source: Union of Concerned Scientists
States with Global Warming Targets
Source: Pew Center on Global Climate Change.
Multiple Energy Use Problems
1.
Increasing costs for new power
plants and fuel driving rates up
2.
Facility energy operating budgets
increasing
3.
Global climate change with electric
and gas energy use responsible for
two thirds of greenhouse gases
Multiple Benefits of Efficiency
Reducing future utility rate increases  Energy Efficiency < $500 per kW
while it costs >$2,000 per kW for new
power plants
2. Energy operating budget increases  Facilities have saved 20%+ of energy
costs through increased efficiency
3. Global climate change  Increasing efficiency is the most cost
effective solution by far
1.
Cost of Electricity Resources
(Source: ACEEE 2006 & EPRI 2006)
8
Levelized Cost of Electricity (cents/kWh)
7
6
5
4
3
2
1
0
Energy
Efficiency
Pulverized Coal IGCC
Coal
w/o carbon
Nuclear
Nat. Gas
Combined
Cycle
w/ $20/ton carbon
Biomass
Wind
Typical Approach to
Energy Management

Gather Data

Communication
Analyze Data

Planning
Quantify Opportunities A purely technical focus goes only so far

Goals
Select Projects

Provide Justification
Awareness

Support
Gain Approval

Performance Tracking
Motivation
Implement Projects

Project Validation
Energy Management ….
…in Theory






…in Practice
Management Commitment… …Management Concern
…Another “Hat” for Someone
Energy Champion…
…No Payback on Sub-Meters
Measure & Monitor…
Report & Communicate… …Monthly Actual vs. Budget
…Based on What?
Set Energy Savings Goal…
…No Support
Implement Projects…
Practical Energy Management
8 Sections
1. Management Plan
5. Project Prioritization
2. Facility Profile
6. Project Management
3. Energy Use Profile
7. Key Performance Indicators
4. Best Practices
8. Continual Improvement
Practical Energy Management
Section 1
 Management
Plan
An organized
approach to
continually improving
your energy
management program
Practical Energy Management
Section 2
 Facility
Profile
A summary of the
energy data for your
facility relative to
other costs and years
Practical Energy Management
Section 3
 Energy
Use Profile
Estimates and shows
the relative energy
consumption for
equipment
Electrical
MMBtu
3
9
15
18
30
8
30
7
Chiller #1
Chiller #2
Chiller #3
Lighting
Comp Air
Office
Other
Practical Energy Management
Section 4
 Best
Practices
Description of Energy
Best Practices for 16
common systems and
first cut estimate of
energy savings
16 Systems:
• Compressed air
• Lighting
• Space heating
• Ventilation
• Pumps
• Fans
• etc….
Practical Energy Management
Section 5
 Project
Prioritization
A systematic method
for tracking and ranking
individual projects and
summarizing overall
energy savings
“Left Side”
“Right Side”
Practical Energy Management
Section 6
 Project
Management
A systematic method
for managing tasks and
projects
Practical Energy Management
Section 7

Key Performance Indicators
Measures energy use
per KPI such as MWh
per Million Gallons
Practical Energy Management
Section 8

Continual Improvement
Documents and
procedures to provide
continual improvement
approach
PEM© Process for Energy Teams
Briefing &
Reports for
Senior
Management
Energy
Management
Plan
Prioritized
List of
Energy
Projects
Energy Team
or Advocate
Task List
Key Common Projects
 Steam Systems (>80% of Gas Use) - 10 to 20% savings from
failed steam traps, blowdown heat recovery, linkage-less
burner controls, stack economizers, ventilation controls
 Compressed Air Systems (10% kWh) - 10 to 50% savings
from repairing leaks, centralized control, reduce pressure,
variable speed controls
 Pumping Systems (15% of kWh) – up to 40% savings from
using variable speed controls instead of valves
 Lighting Systems (8% of kWh) – 40 to 60% savings from
using high bay fluorescent fixtures
 Process Heating – up to 80% savings from recovering waste
heat. This is a significant opportunity in some industries.
Key Emerging Opportunities
 Drying/Separation - up to 55% savings from
membrane technology
 Process Heating/Melting - up to 40% savings from
stack melters
 Bio Gasification - up to 100% savings especially in
Pulp and Paper
 New Motor/Control Technologies - up to 60%
savings
 Combined Heat and Power (CHP) - very large
potential savings
Focus Mission
Accelerate the rate of energy efficiency
improvement in Wisconsin by
supporting energy efficiency projects
that otherwise would not get
completed.
Similar Programs
Source: Pew Center on Global Climate Change.
Focus Program Basics
1.
Project incentives

Prescriptive/Direct

Custom (up to 30% of project
costs)
2.
Study Incentives (50%)
3.
Technical Support
4.
Information & Education
Current Focus on Energy Budget
18 Month Focus Budgets

$94.7 million Total Programs

$51.6 million Business Programs
 $20
million Industrial Programs

$34.8 million Residential
Programs

$8.3 million Renewable Program
Results FY 2001-2006

Net results to date of entire program
 $225
million spent on Focus over last 6 years
 2001-2006
load that would otherwise exist
 730,000,000
 207
MW ($517 Million in power plant savings)
 33,000,000

kWh
therms
Over $750 Million lifetime customer
savings
Industrial Program Results
First Quarter FY 2007
Units
Unverified
Gross
Sept 2007
Unverified
Gross
YTD
Estimated
Unverified
Net YTD*
Target through
December 31,
2008
% of Target
Kw
1,031
3,417
2,529
18,750
13.5%
kWh
8,086,370
23,549,347
17,441,518
127,500,000
13.7%
Therms
78,239
1,484,549
907,838
6,000,000
15.1%
1000
Annual Savings (millions of kWh)
CA
800
600
TX
Wisconsin Potential
400
NY
WI
200
CT
MA
NJ
OR
ME
0
RI
NH
0
VT
50
100
150
200
250
Annual Budget ($ millions)
From ECW Potential Study – 0.7% Max
Industrial EE Barriers
 Energy is small part of overall costs and not
seen as core business
 No commitment from upper management
 Company culture does not support efficiency investments
 Limited time to focus on energy
 ROI is sometimes too small (> 1 year or >2
years)
 May not trust energy savings will actually occur
 Energy costs are paid out of operation
budget, not linked to capital budget
Feedback and Program Improvement

WIEG as a steering group for Focus
Industrial Sector

What ways can Focus provide a better
service to help you reduce your energy
costs?
Focus on Energy
Industrial Technical Support and
Project Incentives
John Nicol
Industrial Sector Manager
608-277-2941
[email protected]
800-762-7077
www.focusonenergy.com