introduction and purpose of this meeting a new day in...
TRANSCRIPT
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Facilitator NamesUNIDO International Energy Efficiency Experts
LocationDate
Introduction and purpose of this meeting
A New Day in Energy Management
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Would you allow this man to make a $500
purchase on behalf of your company?
What about $10,000?
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Which would you do first?
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Introductions
Name and company Interest in energy managementWhat do you expect from this
workshop? Your experience with EM/EECurrent challenges
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Why are we here?
Energy Management in Industry: Issues & Opportunities
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Developing countries & Emerging EconomiesIndustrial energy use can be up to 50% of the total use and can
produce supply problems energy security
Non-OECD countries will continue to lead global growth of energy demand (87% until 2030 according to the IEA) with industry being the biggest user
Industrial sector growth requires many new facilities, rapidly built and expanded; including substantial growth in energy intensive sectors
Building in energy efficiency the first time is much more cost-effective than retrofitting it later
Governments are increasingly aware, and concerned about, both energy security, industry competitiveness and climate change
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Cost of New Electricity Resources
Source: ACEEE 2008, EPRI 2006 & UCS 2008
0
1
2
3
4
5
6
7
8
9
EnergyEfficiency
Biomass PulverizedCoal
Nat. GasCombined
Cycle
Coal IGCC Wind Nuclear
Leve
lized
Cos
t of E
lect
ricity
(cen
ts/k
Wh)
w/o carbon w/ $20/ton carbon
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Climate Change - What needs to be done Reduction in energy-related CO2 emissions in the climate-
policy scenarios
While technological progress is needed to achieve some emissions reductions, efficiency gains and deployment of existing low-carbon
energy account for most of the savings
Source: IEA World Energy Outlook 2008
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Energy Efficiency a Major OpportunityExisting technologies with an attractive internal rate of return can cut the growth in global energy demand by half or more within 15 years.
-- Curbing Global Energy Demand Growth,McKinsey & Co., May 2007
Industries around the globe can cut CO2emissions 19 to 31% using proven technologies and practices.
-- International Energy Agency, 2007
“Energy Efficiency is the most promising means to reduce greenhouse gases in the short term.”
-Yvo de Boer, Exec. Secretary UNFCC
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Industrial Energy Efficiency Benefits Energy efficiency has demonstrated, time and again, that It saves industrial firms money It increases reliability of operations It has a positive effect on productivity and competitiveness It can offer attractive financial and economic returns Improved security of supply ….
Why it is not happening?
Then
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Barriers to Industrial Energy Efficiency Management focus is on production and not on energy efficiency Lack of information and understanding of financial and
qualitative benefits Lack of adequate technical skills to assess performance,
developing and implementing EE measures and projects First costs more important than recurring costs disconnection
between capital and operating budgets When EE knowledge exists it very often resides with individuals
rather than with the company/organization sustainability risk Poor realization among senior management of the scale of the
opportunity ……
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0 5Years
-25%
-20%
-15%
-10%
-5%
0
+5%
Costs
Costs high = Audit
Waste cutting, some investment
Under control.
Costs high again:Where’s that last audit?
Here we go again!
Ad hoc approach to energy management…
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Structured ApproachSenior management
commit to programme
0 3Years
-20%
-25%
-15%
-10%
-5%
0
+5%
Costs
Investment
Initial savings sustained
Housekeeping first – then investment
Becomes company culture
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What can an EnMS achieve?
Source: SEAI (www.seai.ie) 2010 LIEN report.LIEN = general large industryEnergy Agreements = ISO 50001 group of companiesBased on improvement in energy intensity.
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Energy Management Systems StandardsEnergy Management Systems Standards provide policy as well
as market-driven tools and mechanisms to disseminate energy management best-practices and support implementation
Existing standards
Nationals: USA, Denmark, Sweden, Ireland, South Korea, Spain, Thailand, South Africa, The Netherlands*
Regional: EN 16001 – European Energy Management Standard
International: ISO 50001 – Energy Management Standard
(15 June 2011)
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ISO 50001 and Trade Companies will demand participation by their suppliers-
this is already happening for environmental and lean manufacturing (i.e.--Wal-Mart, Toyota)
Uptake of ISO 9001 in the supply chain was driven largely by Western European countries and Japan
Uptake of ISO 50001 will be driven by the US, Canada, the expanded EU, Japan, Korea, China, Brazil, and probably India
Exporters that position themselves now will be at a competitive advantage
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Energy Management
The Business Case
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Content/ Structure
1. What is being proposed?2. The Current Situation
• Energy consumption and costs• Energy cost trends
3. What is Energy Management?
4. What can be achieved?
5. What could/can we achieve?
6. How does it work?
7. What do we do next?
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What is being proposed? Reduced operating costs
Reduced exposure to rising energy costs
Improved reliability and productivity
Reduced environmental impact
Improved corporate image
Alignment with ISO 50001
Initially based on low cost improvements
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The current situation – energy trends
36,000,000
36,500,000
37,000,000
37,500,000
38,000,000
38,500,000
39,000,000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Dec
-10
Jan-
11Fe
b-11
Mar
-11
Apr
-11
May
-11
Jun-
11Ju
l-11
Aug
-11
Sep
-11
Oct
-11
Nov
-11
Dec
-11
Jan-
12Fe
b-12
Mar
-12
Apr
-12
May
-12
Jun-
12Ju
l-12
Aug
-12
Sep
-12
Oct
-12
Nov
-12
Dec
-12
Cost p.a.
kWh p.a.consumed
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Relative % of turnover
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What can be achieved?
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What can we achieve?
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
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What is energy management?It is how we propose to manage our use of energy!
We want to be more systematic
We will combine the following:
Behaviour change among all employees
Behaviour change among management
Objective use of data to show performance
Technical improvement
Low cost operation and maintenance of existing equipment
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What can be achieved?
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Our current level of energy management
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How does it work?Reduce
kWh
Make Changes
What are you going
to do?Do it!
Is it working?
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What sort of actions will we take?Operation and maintenance initially
• Fix leaks• Fix insulation• Switch off • Run optimum equipment• Optimum settings• Check controls• Training• Maintain improvements
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What do we do next?Make a decision to go ahead
We do not need financial investment until AFTER we start to
show savings
Viable investment projects may follow later
We do need management commitment to improve
Some staff need to help
Some staff need to change behaviour
Some staff need training
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6 Key concepts from the UNIDO EnMS program
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Six Key Concepts1. Commitment
Roles and Responsibilities
2. Significant Energy Users (SEUs)
3. Energy Performance Indicators (EnPIs)
4. Opportunities List5. Operational Control6. Review
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It’s all about improving performance
Source: ISO 50001
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Overview of an EnMS
(based on ISO 50001)
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ISO 50001 Energy Management Standard
Based on the concept of:PlanDoCheckAct
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Management ResponsibilityIs the top management really
comitted?
Will you support the system?
This is a decision point!
If not, we can all go for more coffee now!
Will you make the necessary resources available (technical, financial and human)
We assume you will if you believe there is an adaquate return on your effort or investment
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PolicyManagement commitmentNot just a signature!Define scope of EnMSAppropriate to scaleCommitment to continual improvementMake resources availableFramework for target setting and review
organizations
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PlanningHow much energy are you using?Where are you using it?
Which are the biggest users?
What is driving this use?What is your baseload?Who is influencing its use?Is an energy audit required – focus it?System OptimizationRenewable energy optionsDevelop baseline & indicatorsSet objectives and targetsAction Plan
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Implementation & OperationCompetence, training and awarenessDocumentationOperational control
• KEY AREA• Operation & Maintenance• Service contractors• Training• Implement your action plan
CommunicationDesign
Energy Efficient Design (EED)
Purchasing energy, services, goods
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Checking Technical checking
• Monitoring and targeting (software may be justifiable?)
• Equipment checking
System checking• Is everyone doing what is
required?• Corrective and preventive action• Non-conformities
Performance checking • Check Energy Performance
Indicators (EnPIs)
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Management ReviewRegular presentation
• Frequency based on requirements
How are we getting on?• Is performance improving as
targeted?• Problems and barriers to
overcome?• Achievements
What is the plan for next year?• What do we need to achieve
this plan?
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You’re not finished – this is not a project!
Thenyou start all
over again!!
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What does an EnMS achieve?Management focusSystematic activityIdentify and focus on biggest usersIdentify and focus on key people at all levels TrainingFocus on data and numerical methodsIntegrated approach
People Departments Budgets
Continuity through changes of personnel
Continual improvement It is all about reducing energy costs!
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Building Management Commitment
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Management Role• Give commitment• Sign policy• Allocate resources• Assign responsibility• Top management
representative• Give support• Participate in annual review• Make decisions• Clarify Priorities
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Roles and ResponsibilitiesList all tasks that need to be completed in the EnMS
Assign and agree responsibility for each task
A tool is provided by UNIDO
For each task:
How often?
Who is involved?
Should fit with existing priorities of each participant
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Energy System Optimization: Maximizing energy savings
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Component v system approachComponent approach involves segregating components and analyzing in
isolation
• Can result from education by particular technology sales engineer, e.g. variable speed drive, steam trap, etc
System approach involves looking at how the whole group functions together and how changing one can help or impact another
• Requires more knowledge of the system and its interactions
The energy savings opportunities from systems are far greater than from individual components
• 2-5 % efficiency gains for individual components against 15-30% average efficiency gains through system optimization
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Pumping System
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Why a system approach matters in industryIndustrial operations are more variable than commercial or residential
• Production schedules change• Utilities need to follow production yet remain optimized• Commercial heating/cooling system sometimes behave
like thisPotential savings are much greaterImplementation costs are often lower through fast payback often measured in
months.Steam and motor driven systems account for over 50% of final manufacturing
energy use worldwideWhy would you optimize a boiler efficiency at say 70% of output and then reduce
output?
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Why do opportunities exist?
Most energy systems are designed with:
• The assumption that more is better• Little or no thought is given to system efficiency• No plan for future change in system demand (up only!)• “Lowest first cost” V life Cycle Cost (LCC)• Separate budget for project and operation
Changes to existing systems face the same issuesPoor (=cheapest) commissioningImproper operationPoor maintenanceSystem requirements change over time
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Typical system approach process
What does the user need?
• Consider variations, e.g. seasonal, occupancy, production schedules, alternative services, etc.
Optimise use of the service
• How is it used, operations, controls, etc.Optimise distribution of the service
• Leaks, pressure drops, insulation, etc.FINALLY optimise generation of the service
• Boilers, chillers, air compressors, pumps, etc.
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Pump system example1. Minimise user
requirement2. Shut bypasses3. Determine actual
flow and pressure requirement
4. Reselect motor and pump
5. Replace 150m3/h with 25m3/h
6. Save 75% or 176MWh p.a.
28kW
6kW
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Planning How much energy are you using?Where are you using it? Which are
significant?What is driving this use?What is your baseload?Who is influencing its use?Is an energy audit required – focus it?Energy System OptimizationRenewable energy optionsAre there legal or other requirements?Develop baseline & indicatorsSet objectives and targetsAction Plan
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Energy Management plus System OptimizationEnergy management standard provides:A framework for understanding significant energy use Action Plans to continually improve energy performanceDocumentation to sustain energy performance improvementsSystem optimization provides:A method of assessing systems to identify energy performance improvement
opportunitiesActions that can provide significant energy savings with limited capital
investmentsMore reliable operations
Energy Management + Systems Optimization
Winning Strategy for all Industrial Sectors & Sizes=
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ISO 50001 – Resource requirements to implement an effective EnMS
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What resources are required?Management Resources required
• Consider the opportunity• Make the decision to go ahead• Review and approve the policy• Participate in the regular review meeting• Make on-going decisions as required• Offer encouragement and support
Operational resourcesImplementation cost (for EnMS itself)Capital Investment
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What resources are required?Management Resources requiredOperational resources
• Completion of planning steps• Training is probably the largest cost• Support from other departments• Some time for energy manager to focus on Energy
EfficiencyImplementation cost (for EnMS itself)Capital investment
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What resources are required?Management Resources requiredOperational resourcesImplementation cost (for EnMS itself)
• Consultancy support (if required)• Certification cost (if required)
Capital investment
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What resources are required?Management Resources requiredOperational resourcesImplementation cost (for EnMS itself)Capital investment is straightforward!
• Either finance is justifiable and available or it isn’t!• The focus of the EnMS is on prioritising opportunities
• Low Cost First
• Capital projects are also identified and justified
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Overview of the UNIDO program
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THANK YOU