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The Key Tool in Energy Management Andrew Ibbotson Joe Flanagan Monitoring and Targeting.

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Presentation on theme: "The Key Tool in Energy Management Andrew Ibbotson Joe Flanagan Monitoring and Targeting."— Presentation transcript:

1 The Key Tool in Energy Management Andrew Ibbotson Joe Flanagan Monitoring and Targeting

2 Monitoring and Targeting (M&T) l Provides lowest payback savings l Provides excellent basis to identify, justify and monitor major projects l Provides most robust way of reporting back to Govt.

3 What is M&T l A management tool to help reduce energy and utility usage using a proven methodology. l A rigorous and well structured analysis of energy and production data l Identification of new cost saving opportunities l Maintains saving performance

4 Identify where Energy is Used and Develop an Action Plan Senior Management Commitment Produce Reports to Monitor Energy Use Against Output Review Performance and Action Plan Implement Energy Saving Measures Measure Energy Consumption and Production Develop Targets Audit The energy management process

5 M&T System Scoping Study People Management Processes Awareness & Motivation Training People Management Processes Awareness & Motivation Training Systems Metering & Data Acquisition Software Analysis and Reporting Systems Metering & Data Acquisition Software Analysis and Reporting Integration Technology Project Identification Financial Evaluation Engineering Technology Project Identification Financial Evaluation Engineering

6 Site Commitment l Gain senior management commitment l Construct / develop site energy and environmental policy l Develop a specific implementation plan - Time scales - Resources (site metering and capital funds) - Performance measures - Project champion and site team

7 Awareness & Motivation l High profile project launch meetings l Define departmental reporting system l Start training programme (software, methodology & technical) l Implement communications programme (policy, reports & competitions) Meeting every 1-2 Months Meeting every 2 weeks

8 Training Methodology l Principles of a M&T programme Technology l Boilers, Steam Systems, Refrigeration, Compressed Air, Drives & Motors, Lighting, Process Systems Software l Data collection systems, M&T software and opportunities database

9 Metering Review and Data Collection l Map the utility, resource and production networks l Establish the data collection methods l Manual, Psion, File Transfer, Mixture l Model the site in software l Establish correlation and KPI’s l Develop specific reports utilising M&T l Boilerhouse, Refrigeration, CCL, Production, KPI’s m3

10 Inputs Handheld data-logger Existing computer files Manual entry Automated Metering Corporate file server (Table Required) M&T System

11 Data Collection and Analysis Using a Spreadsheet






17 M&T Software Implemented 6 Months


19 Opportunity Database l Captures all improvement ideas l Allocates individual responsibility with deadlines l Monitors idea progress l Describes and quantifies the opportunities - Potential Savings - Investment Required - Priority (Payback, Technical Difficulty) l Reports the total project status


21 Opportunity Data Base

22 Project Review l Monthly Steering Group Meeting - Total Savings - Energy Usage - Projects/Environmental Improvements - Costs l The M&T Quality System - Software Standards - Training and Programme Standards

23 Project Implementation Year 1 System Develop People Implement Technology Project Payback Benefits 5% -15% Savings Low Risk Utility Savings Environmental Compliance Scoping Audit

24 Case Study - UK Dairy Group l 5 Site parallel implementation across UK l 5 Teams of 6 people l 20 Utility Sub Meters per site (10 water & 10 electric) £30K l enManage implementation costs £120 K l Utilities Savings£300,000 l Packaging Savings£200,000 l Product Savings£750,000 l Total£1,250,000

25 Case Study - UK Dairy Group Projects l Group condensate recovery improved from 15% to 80%. Water, effluent, gas and chemical savings £60K. (Improved boiler response) l Compressed air leakage minimised saving £30K l Group CIP benchmarking exercise. Savings cica £120K

26 The Rewards l Resource cost savings - scope to save - Utilities 5% - 15% - Raw Materials up to 1% - Packaging 5% l Environmental Compliance - IPPC - ISO 14001 l Low Risk

27 Setting Up M&T Data Collection and Meters

28 l To determine what should be monitored l To determine areas of accountability l To determine costs of further monitoring equipment required l To propose a cost effective solution Objectives

29 Some Initial Thoughts l How are energy costs monitored? l Who is acountable for usage? l Is the company using energy efficiently?

30 Typical Scenario l Canned food manufacturer l Energy costs £800,000 (€120,000) per annum l Average monthly bills: - Electricity : £40,000 - Gas : £26,000 l Bills passed to Services Department for checking l Bill paid by the Finance Department l Did they use energy efficiently?

31 Is Energy Used Efficiently? l How do we measure performance? l Who do we make accountable? l How do we make sure we achieve minimum energy costs?

32 Monitoring Systems Level System 1 Monthly bills only 2 Monthly meter readings 3Monthly readings checked against output to produce a specific energy ratio (S.E.R.) 4Monthly monitoring system based on submetering 5Weekly system based on submetering and targeted against output

33 Who is Accountable for the Energy Level System 1Finance Department 2 Services department 3 Each Production department according to some apportionment 4 Each department according to metered consumption 5Each department with adjustments made for output

34 Information Required Prior to Audit l 12 monthly energy bills and costs l Distribution line drawings of all utilities: - Gas - Electricity - Steam - Water etc. l 12 monthly production figures l Major plant ratings

35 Electrical Audit l Determine major loads from distribution board ammeters l Estimate weekly running hours l Balance against weekly total of electricity consumed

36 Oil/Gas/Steam/Water Audit l Can estimate against plant ratings and running hours l Production load should be taken into account l Balance against weekly total consumed l Typically simpler than for electricity as fewer and better defined users.

37 Steel Company l UTILITY BILL : €5 Million l Savings potential : 2%  €100,000 l Metering costs depend on payback criteria: - 12 months payback = €100,000

38 Air Compressors Fridge Compressors Bottling Line Sterilising Line Cold stores Offices General Lighting Main Hall Ventilation Boilerhouse Cartoning Plant/AreakWh/wk£/wk£ p.a. 10,000 18,000 9,000 12,000 8,000 3,000 5,000 6,000 7,000 11,000 800 1440 720 960 640 240 400 480 560 880 40,000 72,000 36,000 48,000 32,000 12,000 20,000 24,000 28,000 44,000 Unaccounted Balance11,00088044,000 TOTAL100,0008000400,000 Typical Energy Balance

39 C= A P t 100 C= Justifiable submetering expenditure (£) A= Annual energy costs (£) P= Potential savings (percentage) t= Acceptable payback period (years) Metering Justification

40 l Electricity 3% l Gas/Oil 5% l Steam 5% l Water 5-10% l Comp. Air 10% Typical Values of “P”

41 l Take €1 Million p.a. bill (Electric) l 3% savings- €30,000 l Typically 20 meters (installed) l Start with main services - Air Comps. - Fridge Comps. - Boilerhouse l Apportion remainder as distribution boards dictate Metering Approach

42 l Definable areas - Department l Definable plant - EAC l Preferably Accountable to one person - EAC l Significant energy costs - EAC Department and Energy Account Centre (EACs)

43 Metering

44 l Simple and accurate l Relatively cheap l Turn down ratio - most current transformers inaccurate below 20% full current l Majority of installation can be done whilst board is live l Install meters with kWh & kW read-out Electricity Meters

45 l Different Types l Different Fluids l Accuracy Considerations l Installation Considerations Flow Meters

46 l Orifice Plate Meters l Variable Area Meters l Turbine Meters l Vortex Shredding Meters l Electromagnetic Meters l Ultrasonic Meters l Rotating Lobe Meters l Rotary Piston Meters l Diaphragm Meters Flow Meters

47 l Suitable meters include: - turbine - diaphragm - rotating lobe l Temperature and pressure compensation needed, ideally automatic for larger users l Fairly accurate +/-1% l Typical costs: 25mm50mm80mm Turbine-€1,800 €2,700 Diaphragm €300 €1,200- Gas Meters

48 l Suitable meter types include: - Orifice plate - Variable area - Vortex shedding - Rotary shunt l Relatively expensive l Accurate sizing very important l Temperature and Pressure correction essential l High on maintenance costs l Adequate removal of condensate to stop water hammer is essential Steam Meters

49 Steam Meter Costs Meter Type Meter Cost (£) 100 mm150 mm Orifice Plate7,000 Variable Area10,00012,000 Vortex6,0007,500 Includes automatic pressure compensation

50 l Suitable meters include: - Rotary piston - Turbine - Vortex shedding - Ultrasonic - Electromagnetic l Standard meters accept 40oC l Relatively cheap if use positive displacement meters l Critical for control of steam usage in some cases l Check flow rates accurately and reduce pipe diameter if possible Water Meters

51 Water Meter Costs Meter Type Meter Costs (£) 25 mm50 mm100 mm Positive Displacement250600700 Turbine-7,001,200 Electromagnetic-2,5003,000

52 Compressed Air Meters l Suitable meter types include: - Orifice plate - Variable area - Turbine - Vortex shedding l Metering considerations similar to those for steam l Expensive, similar to steam meters l Pressure and temperature compensation needed

53 l Measures flowrate, flow temperature and return temperature to calculate “heat” usage l Expensive: l Accuracy of temperature measurement must be high as the temperature difference can be small Heat Meters Meter Type Meter Costs (£) 100 mm150 mm Turbine (<130°C)3,5005,000 Electromagnetic (130 -180°C)6,0007,000

54 l Suitable meters include: - Turbine - Rotary Piston l Easy to install l Relatively cheap i.e. around €1000 l Density (i.e. Temperature) compensation needed l Beware of supply/return line burners! l Tank dipping not sufficiently accurate Oil Meters

55 l In-house or sub-contract l Ease of access/remote reading l Correct units: m3/gallons l Don’t underestimate costs l Allow reasonable time-scale l Install meters with a 4-20 mA or pulse output if available Installation

56 Data Collection

57 l All Meter readings l Production Data l Ambient Temperature Data (degree days) l Auxiliary Data Data Collection

58 l Monthly l Weekly l Daily l Each shift l Each batch Meter Reading Frequency

59 l Manual l Hand held data logger l Totally automatic Data Collection Methods

60 l Allow 1 minute/meter l Ensure meters read at same time each week l Ensure at least 2 people know location of all meters l Produce meter reading form to reduce errors Manual / Portable Data Logger

61 l Worthwhile for larger users l Allow at least double meter costs for automatic data collection l Cannot be justified on cost savings alone, must have additional benefits such as process control l Can lead to data saturation Automatic Data Logger

62 l Meters with consistent errors can still be used since we are looking at trends in consumption l Digit errors most common, normally compensated for at next reading l Watch for meters “going round the clock” l Software should pick up significant data entry errors Error Checking

63 l Often not available straight away l Energy monitoring period must be in line with production monitoring l Collect all data to start with and then simplify later l Simplify production data as much as possible, hopefully to overall tonnage Production Data

64 l Degree day data l Manual collection - Max/min thermometers l Automatic collection - Degree day logger - Meteorological office l Important Ambient Temperature

65 Degree Days DayT maxT minT Ave Degree Days (To = 15.5°C) Monday8. Tuesday7. Wednesday5. Thursday4. Friday1.0-.20-0.516.0 Saturday1. Sunday3.001.514.0 Weekly Degree Days = 85.0

66 Auxiliary Data l Hours Run - Compressors - Large fans - Machinery l Process Parameters - Temperature - Pressures - Raw materials

67 Setting Targets

68 Data Processing Options l Spreadsheets l Databases l Statistics Software l Utility Software

69 Requirements of Data Processing System should: l be easy to use l be flexible and extensible l link to existing data and systems l provide a powerful tool for identification and analysis of savings opportunities l provide true measure of performance l empower managers to improve efficiency l make individuals responsible

70 Preliminary Data Analysis l For preliminary target setting l Preferably regression analysis l Requires familiarity with the process

71 Types of Target l E = a (constant) l E = a + bP (single regression) l E = a + bP 1 + cP 2 + _ _ _ _ l Non-linear relationship

72 E = Constant

73 Single Regression





78 Correlation Significance Minimum value of r such that odds are 100 to 1 against it being due to chance Nr 100.767 150.641 200.561 250.506 300.464 350.425 400.402 450.380 500.362

79 Multi-Regression l More than 1 variable l Try to keep to a maximum of three variables l Only use if you are sure of the relationship since regression is not very accurate on few data points





84 What Does Energy Use Depend On? l Output/Input - (Production, Work Content) l Plant running time l Temperature - (Product, External) l Other factors - Water content, Raw materials, - Exothermic Reactions, Endothermic Reactions

85 Utility Dependency at a Dairy Water vs Milk Throughput 0 100 200 300 400 500 600 700 800 010020030040050060070080090010001100 Bottle Wash Water (m 3 ) Milk Throughput (000’s Litres)

86 Utility Dependency at a Dairy Water vs Production Hours 0 100 200 300 400 500 600 700 800 0 51015202530354045505560 Production Hours Bottle Wash Water (m 3 )

87 Endothermic reaction

88 Reporting and Sustaining the Programme

89 Need for Reporting l To keep people informed of their weekly performance (against Key Performance Indicators, regression targets) l To monitor long term progress l To create feedback on improvements made l To motivate people to improve

90 Reporting Frequency l Weekly l Monthly l Quarterly l Annually

91 Typical Weekly Report for a Milk Processing Department Utility Account Centre Actual Usage Target Usage Utility Cost (£) Variation from Target %£ Finished Milk Water (m³)5824941,030-17.8-160 Milk Reception Water (m³)6227281,13614.6192 New Processing (m³)154150282-2.7-6 Process Floor Water (m³)7816241,428-25.1-284 Milk Reception Elec (kWh)43,30040,8655,044-6.0-284 New Process Elec (kWh)8,2507,480964-10.3-90 Milk Separator (kWh)6,5706,5807640.20 Departments Totals--10,648-6.0-632

92 Typical Weekly Site Summary Report for a Diary Department Actual Usage (£) Target Usage (£) Variation from Target %£ Processing10,64810,196-6.0-632 Bottling5,0765,2483.3172 Cartoning7,1686,976-2.8-192 High Temperature5,7066,2168.1506 Services10,94410,720-2.1-224 Site Totals39,54239,352-0.5-190

93 Monthly Report l Summation of 4 or 5 weeks l In line with cost accounting procedures for monthly costing and monthly budgeting l Year to date variance also important

94 Trend Graphs

95 Energy Consumption Energy (000’s KWh) Week Number Target Actual

96 Variance -20 -15 -10 -5 0 5 10 15 12345678910 Variance (000’s KWh/wk) Week Number

97 Cusum (Cumulative Sum) TARGETACTUALVARIANCECUSUM (KWh) 210,000 225,000 220,000 210,000 230,000 240,000 230,000 220,000 225,000 200,000 210,000 200,000 235,000 250,000 240,000 235,000 230,000 +10,000 +15,000 +10,000 -5,000 -10,000 -15,000 -20,000 -5,000 +10,000 +25,000 +35,000 +45,000 +40,000 +30,000 +20,000 +5,000 -15,000 -20,000

98 Cusum Plot -1000 -500 0 500 1000 1500 2000 2500 12345678910 Cusum (£) Week Number

99 Arc Furnaces Energy Savings Cumulative sum of A SHIFT Cumulative sum of B SHIFT Cumulative sum of C SHIFT Cumulative sum of D SHIFT (£) WEEK

100 Organisation for Action

101 14 All Levels have a Role l Chief Executive - Commitment, Leadership l Production Managers - Holds departmental budgets l Chief Engineer - Designs process, facilitates production l Energy Manager - Investigates, monitors, facilitates l Line Personnel - Use and save energy

102 Energy Management in Action l Nominate an energy manager (project champion) l Establish an energy steering group l Set up energy improvement teams l Improve communication & awareness

103 The Tasks of the Energy Manager/Project Champion l Promote projects within the company l Develop the action plan l Identify, train and co-ordinate teams l Discuss resources and timescales with senior management l Measure progress l Report frequently, simply and clearly l Promote project successes

104 Energy Steering Group l Senior Management l Production Managers l Engineering Manager l Project Champion l Finance/Quality People

105 Steering Group Purpose l To discuss weekly, monthly, quarterly performance l To discuss actions necessary to improve performance l To allocate specific tasks to members of the team l To assess success of actions l Meets every 1-2 months to review progress

106 Role of the Improvement Team(s) l Monitor plant performance - observation - audits l Identify problem areas l Brainstorming sessions l Identify opportunities l Monitor implemented solutions l Meet every 2-4 weeks

107 Communication Are staff aware of: l The site energy strategy? l Energy usage on site and the associated costs? l Energy reduction projects implemented? l The impact of their own role on energy costs?

108 Typical Forms of Communication l Training l Newsletters and magazines l Press l Posters and stickers l Videos l Presentations and briefings l Reports on actions and on progress l Public displays of achievements

109 Typical Problems l Apathy l Lack of ownership and accountability l Lack of understanding of targeting process l Data errors l Lack of resources

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