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Ameren Illinois Energy Efficiency Program Practical Energy Management PEM Overview Workshop DATE 2/25/16 Todays Agenda Energy Efficiency in Perspective Ameren Illinois Energy Efficiency Program Practical Energy Management

  1. Ameren Illinois Energy Efficiency Program Practical Energy Management PEM Overview Workshop DATE 2/25/16

  2. Today’s Agenda • Energy Efficiency in Perspective • Ameren Illinois Energy Efficiency Program • Practical Energy Management • PEM Principles & Tools – A Case Study with Big Time Plastics • Strategic Planning for Program Development

  3. Energy in Perspective Projected Worldwide Consumption OECD 600 Quadrillion 90% BTU Non-OECD 500 5x 400 300 18% 535 200 285 282 242 100 0 2010 2015 2020 2025 2030 2035 2040 OECD (Organization for Economic Cooperation and Development ) Source: EIA International Energy Outlook 2013. Figure 12. Table 1.. Page 9. http://www.eia.gov/forecasts/ieo/pdf/0484(2013).pdf

  4. Energy in Perspective Coal Capacity Additions by Years China v U.S. China – 55GW US – 5GW Source: Slide 16. Tracking New Coal-Fired Power Plants. Erik Shuster. National Energy Technology Laboratory. Office of Strategic Energy Analysis & Planning. Jan 2012. http://www.alrc.doe.gov/coal/refshelf/ncp.pdf

  5. Carbon Accounting

  6. Market Ready? Pepsi Co ? United States United Kingdom

  7. Efficiency as a Resource Energy Consumption by Source Energy Effiency* 57.0 Petroleum 34.6 Natural Gas 26.1 Coal 17.3 Nuclear 8.1 Biomass 4.4 Hydro 2.6 GWS Quadrillion BTUs 1.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Source: U.S. Energy Information Administration. Primary Energy Consumption Estimates by Source, 1949 – 2012. http://www.eia.gov/totalenergy/data/annual/index.cfm#summary *Source: Energy Efficiency: America's Greatest Energy Resource. Alliance to Save Energy. July 2014. https://www.ase.org/resources/energy-efficiency-americas-greatest-energy-resource

  8. What’s the Solution? Better Energy Management

  9. Industrial Energy Use Other Process Use 6% Non-Process Use 11% Process Heat 36% Cogeneration 14% Machine Drive Steam 16% 17% Source: U.S. Department of Energy EIA (2005) 9

  10. Industrial Electricity Use Fans & Blowers 14% Non-motor Use 22% HVAC 2% Pumps 24% DC Drives Other Motors 8% 12% Compressors 12% Machine Tools 6% Source: Federal Energy Management Agency 10

  11. Something To Think About “For every $1 spent on energy efficiency, more than $2 in energy supply costs are avoided” Source: The International Energy Agency www.iea.org 11

  12. Something To Think About Businesses spend on their utility bill? 30% Lighting, cooling and ventilation account for how much electricity use? 60% Space heating encompasses how much natural gas consumption? 80% -E Source, 2010 12

  13. Ameren Illinois Energy Efficiency Program 13

  14. Ameren Illinois Energy Efficiency Program’s Mission Improve energy efficiency in Illinois by supporting customer energy efficiency projects that… … otherwise would not get completed

  15. Ameren Illinois Energy Efficiency Programs Provide cash incentives to help cover a portion of the cost of energy efficiency projects – which in turn helps save money on future utility bills. • Program started in June 2008 • State mandated program – Rate Relief Act (SB 1592 passed in 2007) by Illinois Legislature • Program Year 8 (June 1, 2015 to May 31, 2016) 15

  16. Ameren Illinois Energy Efficiency Achievements Since 2008, Ameren Illinois Energy Efficiency programs have helped thousands of businesses: 16

  17. Ameren Illinois Energy Efficiency Program Available Assistance Technical Assessments Financial Incentives • Energy Advisors available to • Prescriptive Incentives • Feasibility Study assist. • Facility-wide • Staffing Grants • Project-level • CLIP (Competitive Large Incentive Program) • Metering and Monitoring Training & Education • Leak Survey • Webinars and Traditional • Retro-Commissioning • Energy Using Systems • Custom Incentives • Energy Management • ActOnEnergy.com/Education

  18. PEM (Practical Energy Management) 18

  19. Practical Energy Management Characteristics of Effective Programs • A continual improvement strategy compatible with SEM (Strategic Energy Management), Six-Sigma, Lean Mfg, ISO 14001, ISO 50001, etc. • System of savings calculators, organizing tools & management strategies • Integrates management & technical aspects of energy management into existing business practices

  20. Energy Management Continual Improvement Approach Goals Management Planning Motivation • Understand Energy Uses Support Communication • Generate EE Ideas Awareness Performance Tracking • Quantify Opportunities A purely technical focus goes only so far Production • Select Projects • Provide Justification • Gain Approval • Implement Projects to Save $$

  21. Energy Management Characteristics of Effective Programs • Strong leadership & resource allocation • Corporate culture that recognizes value of EE • Sub-metering & internal energy cost allocation • Energy assessment of all capital projects •“On the fly” production adjustments for EE • Clear understanding of impact of energy costs on products produced or services rendered

  22. Energy Management Barriers to Effective Program • Other Priorities (quality, safety, production) • Energy Taken for Granted (“It works…don’t fix it”) • Lack of Data (about energy use and drivers) • Narrowly Focused (“talk to the facilities guy”) • Lack of Awareness (about opportunities & methods) • Insufficient Resources (finances & staff time)

  23. Energy Management Practical Approach … in Theory … in Practice • Management Commitment… …Management Concern • Energy Champion… …Another “Hat” for Someone • Energy Policy… …Nice Words – No Teeth • Energy Team… …Another &*#@ Meeting ! ! • Measure & Monitor… …No Payback on Sub -Meters • Report & Communicate… …Monthly Actual vs. Budget • Set Energy Savings Goal… …Based on What ? • Implement Projects… …No Support

  24. Practical Energy Management 8 Sections • • Management Plan Project Prioritization • • Facility Profile Project Management • • Energy Use Profile Key Indicators • • Best Practices Continual Improvement

  25. Energy Management Plan Based on Results of Gap Analysis

  26. Gap Analysis Tools • U.S. EPA’s Energy Star Program – Provides program and facility level assessments – http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index • U.S. Dept of Energy SEN Leaders Tool – Provides assessment against ISO 50001 (March 2011)

  27. Facility Profile 2006 Key Performance Indicators (Annualized) Energy in Business Context Lbs Resin 408,858 Total Btu’s Electric $ p Lbs Resin $2.76 Natural Electric MMBtu p Lbs Resin 0.180 Gas Gas $ p Lbs Resin $2.53 Gas MMBtu p Lbs Resin 0.339 Tot Energy $ p Lbs Resin $5.29 Water $ p Lbs Resin $0.52 2006 Business Indicators (Annualized) Total Energy Cost $2,164,782 No.2 Oil Operating Costs $15,000,000 Energy as % Oper. Costs 14.43% Total Facility Costs $33,500,000 Energy as % TF Costs 6.46% Annual Profits $3,450,000 Energy as % of Profits 62.75% Electricity Propane % Increase in Profits with 5% 3.14% Reduction in Energy Costs

  28. Best Practices Finding Opportunity Chiller #1 Electrical MMBtu Chiller #2 Chiller #3 Lighting Comp Air Office Other

  29. Best Practices Finding Opportunity Chiller #1 e.g. “Free Cooling” Project Electrical Save 2.5% MMBtu Chiller #2 Chiller #3 Lighting Comp Air Office Other

  30. PEM Best Practices Calc Sheets • • Comfort Heating Process Cooling • • Comfort Cooling Process Heating • • Compressed Air Pumps • • Dehumidification Refrigeration • • Fans Steam/Hot Water • • Hydraulic Vacuum • • Lighting Ventilation • • Motors Wastewater treatment

  31. Project Prioritization List

  32. Project Prioritization List

  33. Energy Efficiency vs. Energy Intensity Efficiency – amount of output per unit of energy Intensity – amount of energy per unit output

  34. Terminology Ene nerg rgy y Perfor ormance mance Indi ndicat ators s (EnPls) – a measure of energy intensity used to gauge effectiveness of your energy management efforts. Basel elini ning - comparing plant or process performance over time, relative to its measured performance in a specific (i.e. baseline) year. Benc nchmar hmarking king - comparing performance to average or established best practice level of performance against an appropriate peer group.

  35. Energy Use Drivers Weather Square feet Production Volume Building occupancy

  36. Simple Regression Model y = mx + b R 2 = correlation coefficient m = energy per variable unit b = base load Variable Load Energy Use Base Load Energy Driver (e.g. Production Volume)

  37. EnPI Example – Data Collection • Select baseline year (e.g. 2008) • 24 months additional data • Ensure data intervals align

  38. EnPI Example – Scatter Diagram • Energy use is dependent variable (y) • Production is independent variable (x) • Relationship appears linear

  39. EnPI Example – Trend Line • Slope (m) 0.3265 • Y-Int (b) 258,591 • R 2 coefficient • 0.8418

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