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Energy Efficiency Opportunities Assessments (EEOA) for New Ventures (NV) – Results and Observations Samuel PONNURAJ NEA Verification Office

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Page 1: Energy Efficiency Opportunities Assessments (EEOA) for New

Energy Efficiency Opportunities Assessments (EEOA) for New Ventures (NV) – Results and ObservationsSamuel PONNURAJ

NEA Verification Office

Page 2: Energy Efficiency Opportunities Assessments (EEOA) for New

AGENDA

• Summary of EEOA-NV requirements

• Rationale for EEOA-NV

• Results from EEOA-NV

• Causes leading to poor quality EEOA-NV

• Ingredients for a good quality EEOA-NV

• Highlights of EEOA-NV projects

• Incentives available for NVs

• Summary

Page 3: Energy Efficiency Opportunities Assessments (EEOA) for New

Summary of EEOA-NV

Requi rements1

Page 4: Energy Efficiency Opportunities Assessments (EEOA) for New

Eligibility of NV • Applied for planning permission on or after 1 Oct 2018

• Estimated annual energy consumption ≥ 54 TJ

(basis that business activity is carried out at full capacity, 24/7 365 days a year)

• Business activity of NV is carried out at a single site and from one of the following

industry sectors:

➢ Manufacturing and manufacturing-related services

➢ Supply of electricity, gas, steam, compressed air and chilled water for air-

conditioning

➢ Water supply and sewage and waste management

EEOA Requirement

for NV

• Develop EEOA plan

• Identify opportunities during Concept Engineering and Front-End Engineering Design

(FEED) stages along with cost-benefit analysis and GHG abatement potential

• Evaluate and incorporate feasible opportunities into final design

• Submit EEOA report to NEA/CMD for approval prior to Development Control (DC)

application

✓ Checklist and EEOA report clearance letter/email to be submitted at DC stage

Summary of EEOA-NV Requirements

Page 5: Energy Efficiency Opportunities Assessments (EEOA) for New

Typical NV Development Lifecycle and Importance of EEOA-NV Requirement

EEOA-NV compels a more

structured framework and

rigour in identification and

evaluation of EEOs during the

design phase by

➢ Bringing people with right

expertise together to plan

for EE

➢ Challenging plant designs

with alternative options

Page 6: Energy Efficiency Opportunities Assessments (EEOA) for New

Rat iona le fo r EEOA-NV2

Page 7: Energy Efficiency Opportunities Assessments (EEOA) for New

Conventional Design Team & Process

Not Organised to Design for Energy Efficiency

1. Linear Planning

i. Owner & Engineering Consultant agree upon a design concept.

ii. After facility is built, Facility Manager tries to optimise energy use.

Pros Cons

• Quick and easy planning • Fail to account for downstream system-level

synergies

• Often too late to incorporate such synergies

after commencement of construction.

2. Energy efficiency typically not a facility design criterion

i. Not prioritised along with cost, schedule, quality and safety

ii. Design team’s main focus not on operational energy costs

• Identifies equipment that fits the budget.

Page 8: Energy Efficiency Opportunities Assessments (EEOA) for New

Energy Efficiency Savings Potential

• Space constraint

• Disruption to production

• Additional cost of integrating

improvement into an existing

design

Challenges faced by

companies to improve EE

during Operation Phase

Source : Sustainability Energy Authority of Ireland, Energy Efficient Design Methodology

Highest Potential at Facility Design Phase

Page 9: Energy Efficiency Opportunities Assessments (EEOA) for New

Energy Efficiency Design Methodology

Right People Together to Plan for Energy Efficiency

Facility Manager

Operations

Design Consultant

Architect

ContractorEnergy Expert

Integrative Design TeamIdentify basic design and energy consumption of

components

Challenge design with alternatives

Incorporate feasible alternatives into design and

implement

Page 10: Energy Efficiency Opportunities Assessments (EEOA) for New

Resu l t s f rom EEOA -NV3

Page 11: Energy Efficiency Opportunities Assessments (EEOA) for New

EEOA for NV results - Overview

25

EEOA reports 2019-20 Average of energy savings

refinery, petrochemical, chemical,

manufacturing, biomedical, water

management, waste

management, power generation

sectors

11%

▪ Energy savings of NVs with one-time

EE improvement

▪ Range from 3% to as high as 31% EE

improvement

▪ Major energy savings due to

technology selection, heat recovery,

process/equipment optimization,

automation

Page 12: Energy Efficiency Opportunities Assessments (EEOA) for New

EEOA for NV Results

- EEO Categories and Examples

Concept Phase• Various EE technologies

selected such as

process selection, types

of catalysts to be used

• Harness solar energy

• Implement IE4 motors

10 - 30%• Typical range of EE

improvement

• Usually gives large

savings but may require

high capital cost

Technology Selection

Concept / FEED Phase• Boilers with economizer

and air preheater

• Heat integration to

preheat cold streams

with hot streams

• Recovery of steam

condensate

Heat Recovery

15 - 30%• Reduce waste heat &

optimize resources

• Usually gives large

savings & reduces utility

usage

Page 13: Energy Efficiency Opportunities Assessments (EEOA) for New

EEOA for NV Results

- EEO Categories and Examples

FEED Phase• Optimize process

parameters

• Eliminate/reduce

heating/cooling

requirements

• Select energy efficient

equipment

• Right sizing of equipment

2 - 15%• Low cost and quick wins

• Require operation staff

to agree

Process/Equipment optimization

Concept / FEED Phase• Automate batch

processes to increase

productivity

• Reduce energy loss due

to equipment idling &

heating/cooling

Automation

2 - 10%• Use EMIS & monitor

energy performances

• Long-term gains

Page 14: Energy Efficiency Opportunities Assessments (EEOA) for New

Causes Leading to

Poor Qual i ty EEOA-NV4

Page 15: Energy Efficiency Opportunities Assessments (EEOA) for New

Causes Leading to Poor Quality EEOA-NV

15

Insufficient management

presence and diversity

of expertise in EEOA

team

2

EEOA process

started after

design is finalized

defeats the

purpose and intent

of EEOA-NV

(retrospective

EEOA)

1 Over reliance on energy

consultants to perform

the EEOA

3

Insufficient brainstorming

for new and innovative

ideas

4

Mindset of capital cost

savings over energy

conservation

6

Lack of understanding of

best available and

emerging energy efficient

technologies/equipment

5

Equipment overdesign

which may lead to

equipment operating at

sub-optimal conditions.

7

Page 16: Energy Efficiency Opportunities Assessments (EEOA) for New

Ingred ients fo r a

Good Qual i ty EEOA-NV5

Page 17: Energy Efficiency Opportunities Assessments (EEOA) for New

Ingredients for a Good Quality EEOA-NV

Benefits of EEOA NV include reducing:

a) Capital cost of systems due to right sizing

b) Operating cost due to lower energy use

c) Maintenance cost due to operating at optimal loadings

Start earlyStart the EEOA process early (Concept stage) and

engage NEA Verification Office.

Right mix of EEOA teamForm a multi-disciplinary EEOA team with the right mix of

technical competency to work together to conduct a

meaningful EEOA ➢ e.g. senior management, project management, business

analyst, procurement personnel, design consultants, facility

designers, energy consultants, technical, operation and

maintenance personnel, equipment suppliers, academia etc.

Identify energy consuming systemsEstimate annual energy consumption (AEC) of the NV

based on guidelines and identify major energy consuming

systems (ECS) to be included in EEOA-NV.

Page 18: Energy Efficiency Opportunities Assessments (EEOA) for New

Ingredients for a Good Quality EEOA-NV

18

Energy efficiency goes beyond EEOA NV and measuring energy performance is important as it will

a) Shift & reduce demand based on data

b) Benchmark key ECS

c) Understand where wastages are

Brainstorm togetherBrainstorm for innovative Energy Efficiency Opportunities

(EEOs) (e.g. energy conservation, energy efficiency, best

available technologies, emerging technologies etc.)

Quantify savingsQuantify energy savings, GHG emissions reduction, capital

cost, operating cost savings and payback period for EEOs

identified.

Incorporate monitoring of energy

performanceDesign facility to include instruments for monitoring of

energy performance of ECS (e.g. EMIS)

Page 19: Energy Efficiency Opportunities Assessments (EEOA) for New

High l ight s o f EEOA -NV

Repor t s6

Page 20: Energy Efficiency Opportunities Assessments (EEOA) for New

Highlights of EEOA-NV (1)

Page 21: Energy Efficiency Opportunities Assessments (EEOA) for New

Highlights of EEOA-NV (2)

Page 22: Energy Efficiency Opportunities Assessments (EEOA) for New

Highlights of EEOA-NV (3)

Page 23: Energy Efficiency Opportunities Assessments (EEOA) for New

Incent ives Ava i lab le

fo r NVs7

Page 24: Energy Efficiency Opportunities Assessments (EEOA) for New

Incentives Available for NVs

Energy Management

Information System (EMIS)

E2F grant supports

companies to put in

place an EMIS which can

effectively monitor and

manage energy use to

continually improve and

maintain energy

performance of the

facilities

Energy Efficient

Technologies (EET)

E2F grant supports NVs

of existing facilities in

implementing EE

projects whose baseline

can be measured and

verified

[email protected]

Page 25: Energy Efficiency Opportunities Assessments (EEOA) for New

Summary8

Page 26: Energy Efficiency Opportunities Assessments (EEOA) for New

Summary

✓ Start the EEOA-NV process early

✓Assemble a good EEOA team

✓ Energy conservation mindset

✓ Challenge the norm

Page 27: Energy Efficiency Opportunities Assessments (EEOA) for New

Safeguard • Nurture • Cherish

Page 28: Energy Efficiency Opportunities Assessments (EEOA) for New

[email protected]

THANK YOU