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Energy Management

LIEN Workshop - Energy Savings in


the work and drink sector
Thursday April 6th 2006
Ramada Hotel
Alan Ryan
Project Manager
Contents

• Policy and other drivers


• Solutions
• Energy Management
• Practical Tips
• SEI Assistance
Why are we here?

• Regulations
• IPPC
• EU ETS
• Financial
• Electricity + 50% in last 5 years
• Fuels ?% +
• Environmental
• Suppliers
• Corporate
• Cost of Carbon
• And on, and on
Whats the main objective?

AIM
To achieve business objectives at
minimum energy cost

Energy Supply Energy Usage

Pay less per Reduce


unit of energy
energy consumed
Solutions Available

EEI / EPI’s
Energy Supply Tender Supplies

Green Electricity
CHP Biofuels IS393
Energy Usage
Housekeeping Energy Teams Energy
Training Management
Audits
M&T EnergyMAP
Benchmarking
Checklists
Planning
Copyright SEI 2005 ©
Ad hoc approach
Costs high Costs high again:
= Audit Where’s that last audit?
Waste cutting, some
investment
Costs Here we
+5% go again!

-5% Under control.


-10%

-15%

-20%

-25%
0 Years 5
Energy Management Approach
Senior management
commit to programme

Costs
+5% Initial savings
sustained

-5% Housekeeping first – then


investment
-10%
Becomes company
-15% culture

-20%
Investment
-25%
0 Years 3
3 key elements of successful
energy management ?

Balance all 3 for a


Organizational successful
Management Commitment
programme

Technical People
Understanding your Developing an energy
energy usage and how to efficient culture
control it
5 Step Approach

Monitor &
Review

Implement

Plan

Identify

Commit
5 step strategy

• Energy Policy – properly communicated


• Appoint Senior manager sponsor
• Appoint energy coordinator

Commit
Making the Business Case

Previous %
Financial Indicators Current Year
Year change

Annual Op. Costs (AOC) €3,150,000 €4,005,200 +21.4%

Total Energy Cost €105,798 €154,236 +31.4%


Energy as % of AOC 3.36% 3.85% +12.8%
Annual Profits €289,000 €302,000 +4.3%
Energy as % of Profits 36.61% 51.07% +28.3%
% increase in Profits by a
10% decrease in energy 3.66% 5.11% +28.3%
costs
5 step strategy

• Detail and trend past & present energy consumption


• Identify the main energy users
• Identify the main influences on energy consumption
• Identify saving opportunities

Energy Review
Identify
Energy Review - Energy and
emissions mapping

Steam CIP 10%

21%
HVAC 8%

Electricity Production Line A 7%


Bills Equipment
Line B 3%
22%

Line A 5%
Compressed Air
22% AHU’s 8%

AHU’s 9%
Fuel Bills Factory X HVAC
35% Chill B 20%
Energy Review - Step into
the process

- Do we need to use energy?


- Can we use a cheaper form? Steam
- What are its minimum operating
conditions? Electricity
- Are we operating it to this operating Process
conditions? Chilling
- Then and only then
- Are we distributing it efficiently? Other
- Are we generating it efficiently?
Identifying opportunities

• Audits
• IPPC Audit Guidelines

• Good Practise Guide 316 Undertaking an energy


audit
• You know best !
• Energy Team

• Energy Wardens

• SEI best practice website (EnergyMAP May ’06)

www.thecarbontrust.co.uk (GPG316)
Pay less per
Unit of Energy

Negotiate Cost Generate


Lowest Avoidance Own
Price Measures Power

Select Change SEI Biofuels


Best of Programme
Tariff Fuel
Renewable Energy -
Indicative Funding Levels

• Demonstration projects: up to 25%

• Shared cost R&D projects: up to 45%

• Public good R&D projects: up to 100%

• Indicative Upper Level of Funding is 1mEuro of


Eligible Costs
Relevant areas of support
available from RE RDD Prog

• Biomass boilers - 25% of installed cost


• Liquid biofuels projects (transport or heat)
• Anaerobic Digesters – small to medium scale biogas
plants
• Large scale >10MW wood biomass CHP plant
• Wind or Hydro auto production example
Register of Opportunites
Sample Energy Opportunities Register for XXXXXX Ltd
Last Updated xx/xx/xxxx
Assumptions
Average Elec Day Unit Price €/kWh 0.06000 CO2 per kWh elec x gCO2/kWh
Average Elec Night Unit Price €/Kwh 0.04500 CO2 per kWh gas x gCO2/kWh
Average Gas Cost €/kWh 0.01900
Feasibility Analysis
Energy Opportunity Person Est YearlyEstimatedEst. Yearly Simple Comment

Housekeeping Actions
Housekeeping
ResponWh saving C02 saving€ savings Payback

Thermal
Turn off boiler 1 at weekends Tech 1 Ongoing
turn off boiler 2 at weekends Tech 2
Electrical
Air Handling Procedures & methods
Turn off AHU 1 at weekends Tech 1
Turn off AHU 2 3rd Saturday off the mTech 2
Bills management
Tender gas and electricity supply Completed
Enter the WPDRS
Totals
Technology & investment
Capital Actions
Install Economiser Eng 1 1-Jun
Replace bucket trap on machine 7
Replace process 1 with process 2 Eng 2 1-Oct
Items worth investigating
Replace bucket traps with thermody Eng 1 1-Jun
Replacing machine No.7 Prod Eng
CHP plant Eng 2 1-Oct
Totals Copyright SEI 2005 ©
5 step strategy

• Establish a programme plan

Plan

• Set objectives and targets


• Identify & allocate resources
Energy Plan
XXXX Ltd Programme Plan 2005
No Objective and target € Saving CO2 SavingBudget € Manager Responsible
General
1 To train 40 key people in basic energy awareness Training MGr
2 To continuously identify wastage and turn off Production and facilities manager
3 To invest 100,00 euro on energy and Facilities manager
complete at least 20 energy saving projects
4 To identify opportunities for saving every 6 months Facilities manager
instead of every year
Significant users
1 To reduce compressed air consumption by 5% by Facilities supervisor
a. installing a sequence controller
b. installing heat recovery on compressor 1
c. agressively tackling leaks on machines
2 To reduce air handling units consumption by 5% by HVAC supervisor
a. reviewing production monthly and turn off if NIU
b. installing energy efficient motors on 5 AHU's
3 To reduce production consumption by 2% by Production manager
a. replacing machine 7 with new process
4 To reduce gas consumption by 7% by HVAC supervisor
a. turning off AHU's (see 2a)
b. installing air fuel ratio controller
Totals 57000 2500 84000

Signed ____________________ Managing Director


Signed ____________________ EMAP Senior Manager Copyright SEI 2005 ©
5 step strategy

Implement

• Promote energy-efficient practices and awareness


amongst employees
• Train key personnel in energy efficient practices
• Establish an energy savings register
• Ensure the efficient operation and maintenance,
design and purchase of significant energy users
The bane of energy
managers!
Operation and maintenance,
design and purchasing

• Operate what you have correctly


• Learn from mistakes – design and purchase
correctly
Proj. Project Description Estimated Est Yearly Est. Yearly Act Yearly
No. Cost € kW h saving s € savings Savings Jan Feb Mar
A Utility Bills - Joe, Utilities Engineer
Zero Cost Savings
2 Savings over PES tariff with supplier B
3 ESB MD Incentive scheme
0
0
Housekeeping16,834
-
?
#REF!
8,000
133,620 15,318 16,519

1 Winter rebate - items off 5pm-7pm N/A


B. Air Handling/Motive power - John, A/C Tech
No cost
1 Turn off AHU 11 ev/we 0 Procedures & methods
60,000 3,600
300 300 2,400 300
Low/Medium cost
1 Replace AHU 12 motors with Class 1 2500 15,000 900
2 An energy efficient purchasing policy TBC
C. Compressed Air - Bill, Tech
Zero Cost
Technology & investment
1 Reduce generation pressure from 7.5 to 7 b 0 230,000 13,800 3,450 1,150 1,150 1,150
Low/Med costs
2 Shutoff production line 1 CDA auto 1500 23,000 1,380 322 115 115 92
1 Sequence and control compressors 15000 115,000 6,900
D. General Services (Lights, PC's, office equipment) - Adam, Security Supervisor
Zero Cost
1 Turn off lights from 7pm to 8am - B4 0 151,632 6,353 1,513 529 454 529
2 Turn off PC's from 7pm to 8am - B4 0 25 000 1 500 357 125 107 125
5 step strategy

Monitor &
Review

• Develop and monitor Energy Performance


Indicators (EPI)
• Establish a measuring and monitoring system
• Report performance with management regularly
• Management Review annually
Practical Energy
Management

Reality suggests:
• Management commitment is not a given
• Staff time is in short supply
• Staff is technically, not management-oriented
• Limited energy management “infrastructure”

How to manage energy, with no time,


no resources and no management support!
SEI Supports

• LIEN
• Training programmes
• Technology Promotion
• RD&D support
• Energy Awards
SEI Energy Management
Supports

• Energy Agrements
• IS393 Energy
Management System
• Energy Bill > €2m
• In development
• EnergyMAP (Energy
Management Action
Programme)
In conclusion

• Ad hoc approach not sustainable


• Structured approach key to maintaining savings
• Senior management commitment pre requisite
• What are my next steps?
• Energy review

• Ongoing energy management programme

• Formal energy management system

• An appropriate level for every company


• The business case for action is clear
www.sei.ie
Alan Ryansei.i 01-8082536
Kyot o
70 Target
f or Ireland
Waste
60

Agriculture
50

Solvent and
40
Other Product
Use
Mt CO2

30 Industrial
Processes
20 Energy

10
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Change &
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