Presentation on theme: "Benefits of Energy Management Presented by Mark Leinmiller."— Presentation transcript:
Benefits of Energy Management Presented by Mark Leinmiller
Schneider Electric 2 - Industry – Water – December 2012 By end of this session you will know… 1. What Energy Management is 2. How Energy Costs impact operations 3. First steps in Energy Management 4. Alternative funding for Energy projects 5. Measurable benefits of Energy Management
Schneider Electric 3 - Industry – Water – December 2012 What is Energy Management? Ideally, it is a comprehensive, ongoing program involving all levels of W/WW system employees targeted at controlling costs associated with energy and maximizing system reliability. Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Schneider Electric 4 - Industry – Water – December 2012 Why is Energy Management Important? Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Paying the bills One of largest monthly bills What % of your city/county energy spend goes to W/WW ? Dallas, 50% Houston, 50% Clinton, 65-70% Tulsa, 60% Performance Indicator Car: MPG What if dropped 20% Specific Energy (KWH/MG)? RWI pump dropped 20% Train 1 vs. Train 2 15% more efficient. Why? Typical City Energy Usage
Schneider Electric 5 | Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31 st, 2014 We can’t wait for new technologies we don’t have to Efficiency solutions are available now
Schneider Electric 6 - Industry – Water – December 2012 Plant Profile Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Wastewater Treatment Plant 70 MGD avg flow 90 MGD design Influent BOD5: 142 Effluent BOD5: 2.4 No trickling filters Nutrient removal Average Annual Electrical Spend 8.9 cents/KWH 1,800 KWH/MG $3,979,413 Potential Annual Savings 30% See your potential savings:
Schneider Electric 7 - Industry – Water – December 2012 What is my strategy? Energy & Sustainability Consulting – Get some help ●Strategic Energy Planning ●Sustainability Roadmaps ●Energy Star/LEED Assessments ●Energy Market Intelligence ●Energy Rebates & Incentive Support ●Doing nothing is a also a strategy ●Have to decide how valuable ●How fits with local culture
Schneider Electric 8 - Industry – Water – December 2012 How do I buy? Energy Procurement Services ●Energy Sourcing ●Renewable Asset Management ●Rate & Tariff Analysis ●Demand Response ●Energy Risk Management
Schneider Electric 9 - Industry – Water – December 2012 How do I control? Power Reliability & Metering ●Metering Design & Commissioning ●Third-party Systems Integration ●Remote Energy Monitoring ●Emergency Power Supply Systems ●Power System Control ●Demand Control
Schneider Electric 10 - Industry – Water – December 2012 How do I optimize? Infrastructure & Efficiency Upgrades ●Process Optimization ●Systems Automation & Integration ●Design/Build Energy Projects ●Performance Contracting ●Mechanical & HVAC Retrofits ●Renewable Energy Solutions
Schneider Electric 11 - Industry – Water – December 2012 How am I performing? Measurement & Reporting ●Performance Assurance ●Energy & Carbon Reporting ●Operations & Maintenance Support ●Sequence of Events Recording ●Energy Data Analysis ●Cannot manage what you do not measure
Schneider Electric 12 - Industry – Water – December 2012 First Steps in Energy Management
Schneider Electric 13 - Industry – Water – December 2012 How do I get started? Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Figure out where you are today Get a baseline Compare monthly power bills to flows May have seasonal variations Look at penalties Demand charges Power factor charges Other power quality issues Ask for help from trusted advisors Consultants Vendors Put together a long-range plan to get a handle on energy spend and how to reduce it. And keep it down! Energy prices are only going to go up!
Schneider Electric 14 - Industry – Water – December 2012 How do I monitor? Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Start with what you already have 3 Main Elements Monitoring Devices record data Power meters Motor protection relays Circuit breakers with comms UPS systems Generator systems Software to accumulate & manage data, display information Existing SCADA Purpose-built software Communications interface SCADA network, RTUs
Schneider Electric 15 - Industry – Water – December 2012 Build system out further Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Create some basic screens for trending Trend usage data Send data to historian Correlate energy data with operational data Generate benchmarking reports As you start seeing the benefits, grow the system More metering means better data Specific processes Individual pieces of equipment Predictive maintenance More reliability
Schneider Electric 16 - Industry – Water – December 2012 Adding Power Quality to system Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Energy monitoring How much energy consumed Basic data (kWH) Can be broken down by process Even down to the individual equipment or motor level Can be done with existing SCADA Can use many existing devices from numerous manufacturers Tie energy consumed to flows (kWH/MG) Compare your plant to benchmarks (Energy Star) Power monitoring Includes energy monitoring Adds Power Quality aspects Sag, surge, spike, transient Waveform capture, analysis Advanced features improve predictive maintenance, diagnostics, mean-time-to- repair, Alarming Direction detection Sequence-of-events recording (SER) Harmonics, resonance Specialized PQ devices required
Schneider Electric 17 - Industry – Water – December 2012 Power Monitoring Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits to Operations RELIABILITY Capture disturbances before equipment failure Recoup costs from power company for damages Determine, Monitor and Reduce Energy Consumption Reduce Energy Costs Manage Electric Demand Central Command Center Computers & Process equipment should ride through events inside the “envelope” Events outside the envelope are severe enough to cause misoperation
Schneider Electric 18 - Industry – Water – December 2012 Power Monitoring Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits to Engineering Capacity planning Easy access to data On-line documentation Increase reliability Minimize downtime Increased safety Easy access to data On-line documentation Increase reliability Minimize downtime Benefits to Maintenance Alarming / Paging Automatic Meter Readings Generator Testing Identify Leaks / Waste
Schneider Electric 19 - Industry – Water – December 2012 Environmental & Safety - Time and Money ●Arc Flash Events ●Optional remote breaker operation ●Enhanced Safety ●Minimize Protective Equipment issues
Schneider Electric 20 - Industry – Water – December 2012 Which method is safer?
Schneider Electric 21 - Industry – Water – December 2012 ●Minimize Personnel Exposure ●Avoid the hazard of installing temporary portable monitors ●Avoid safety hazards to personnel connecting to energized equipment Environmental & Safety - Save Time and Money
Spot energy waste or inefficient users Improve efficiency with accurate & timely data. (kWh/gallon, per shift) Drive ‘accountability’ by allocating costs Double check the utility bill ! Typical 2 – 5% reduction Reduce Utility Cost Identify “true” elec. gear capacity Maximize equipment life (maybe defer capital expense) Optimize Equipment Typical 2 – 5% reduction Real Time Alarms can notify of approaching breaker trip, or overheating motor, single phase alarm Diagnose power problems to avoid them next time Improve Reliability Additional 2 – 5% reduction
Schneider Electric 23 - Industry – Water – December 2012 Energy Efficiency Renewables 3 Part Energy Reduction Approach Lowers energy demand by reducing ongoing energy use Lowers utility energy demand by shedding loads during peak period only, may preserve grid integrity and/or provide an economic incentive Demand Response Utility Demand Before Utility Demand Before Utility Demand After Utility Demand After Derives some part of energy need from regenerative or non- depleting resources, thereby lowering total utility energy demand Utility Demand Before Utility Demand After
Schneider Electric 24 - Industry – Water – December 2012 Potential Funding Mechanism
Schneider Electric 25 - Industry – Water – December 2012 Annual cost of doing nothing Save or buy? You can use the savings to: finance energy efficiency projects finance infrastructure upgrades
Schneider Electric 26 - Industry – Water – December 2012 Current Utility Budget Performance Contracting Here’s How It Works Example of Your Annual Energy Budget: After performance contracting, the budget remains the same as energy savings pay for the facility improvements.
Schneider Electric 27 - Industry – Water – December 2012 Long Payback Cost Savings Quick Payback Cost Savings What Can We Get Through a Comprehensive Energy Efficiency Project? Real-time Energy Monitoring SCADA System VFDs Aeration System Optimization Biogas for CHP Optimize Digester Performance
Schneider Electric 28 - Industry – Water – December 2012 Project Management Performance Contracting Approach: One Company Accountability ●General contractor ●Construction manager at risk ●Subcontractor management Energy Management Bid-Spec Approach with Traditional Construction: Multiple Accountabililty Sources ●Client hires general contractor as project manager ●Risky, expensive and time ●Management of subcontractors
Schneider Electric 29 - Industry – Water – December 2012 Engineered Solution Performance Contracting Approach: Focus on Energy Efficient Operations and Design ●Maintenance of normal operating parameters ●Emphasis on long-term system performance and cost factors ●Holistic design that capitalizes on the interactions of the ECMs Energy Management Bid-Spec Approach with Traditional Construction: Focus on Exceeding Operating Paramenters ●Energy efficiency can compete with operating parameters ●Emphasis not on long-term system performance ●Piecemealing ECMs doesn’t create synergy
Schneider Electric 30 - Industry – Water – December 2012 Savings: Energy, Chemicals, Labor, Fines Performance Contracting Approach: Guaranteed Energy Savings Fund Improvements ●Savings are maximized over time when improvements are done at once ●Project designed for performance ●Measurement and verification of savings Energy Management Bid-Spec Approach with Traditional Construction: Sporatic Savings Can Occur; Not Guaranteed ●Savings degradation over time if performance not made visible ●Focus is meeting specifications, not achieving savings
Schneider Electric 31 - Industry – Water – December 2012 Financial Guarantee Performance Contracting Approach: Partner for Performance ●Guarantee ensures a partner ●Vested interest in project performance ●Accountable for results Energy Management Bid-Spec Approach with Traditional Construction: Bid-Spec; On to Next Project ●Not responsible for savings being achieved or guaranteed ●No vested interest over the long-term
Schneider Electric 32 - Industry – Water – December 2012 Financing & Funding Sources Schneider Electric’s PC Approach: Provide Options and Support ●Municipal-lease financing, bonds, or cash ●Schneider Electric can help procure financing packages ●Maximum rebates, incentives, and additional funding mechanisms Energy Management Bid-Spec Approach with Traditional Construction: As Capital Funds are Available ●Financing clients’ responsibility ●Client has responsibility of researching/applying for additional funding/grants
Schneider Electric 33 - Industry – Water – December 2012 City of Denison Case Study Denison, TX Project Cost $7,943,747 Guaranteed Annual Savings $217,727 Improvements to their Aeration Basin & Aerobic Digester including new fine bubble diffusion grids Replacement of 750 hp of blowers and 400 hp of pumps Replacement of 3 old switchgear/MCC’s with Sq D switchgear Lighting, EMS, HVAC Project Scope Project Enablers City Manager (CFO) was a proponent; had previous experience elsewhere with PC Proposed improvements were already known issues Budget $ already set aside for some improvements
Schneider Electric 34 - Industry – Water – December 2012 Example Water ESPC Project Current Energy Budget - $694,378 After PC Water Plant – 10MGD – Surface Water Annual Energy Use and O&M Costs = $694,378 ECMs – Rebuild 3 – 450HP turbine pumps New high efficiency motors and drives on finished water Upgrade of SCADA system Upgrade of filter valve actuators Upgrade of chemical feed ECM Costs = $2,423,918 Rebates/Grants/Incentives = $270,000 Guaranteed Annual Savings = $150,305 – 15 Yr Contract
Schneider Electric 35 - Industry – Water – December 2012 Measurable Benefits
Schneider Electric 36 - Industry – Water – December 2012 Measurable Benefits of Energy Management Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits of Energy Quantified in dollars other applicable method Cannot manage what you do not measure. Power is approx 1/3 of O&M costs Passively, 2-5% of energy bill due to Hawthorne Effect; know you are watching. Actively using PM, results will vary significantly. DoE white paper showed non-metered projects achieved 70% of estimated savings while monitored projects achieved 115% of anticipated savings. Quantify equipment utilization; including seasonal variations Avoid capital outlays for additional transformers, etc. by optimizing use of existing equipment. Quantify equipment utilization; including seasonal variations Eliminates the time and expense of manually performing load study measurements. Save $1,500-5,000 for each study. Verify utility billing practices and rates Savings is usually minimal; however, we have found up to 10% errors. That would equate to over $300,000 annually for an 80 MGD WWTP. Provides the necessary data to negotiate better rates with utility Have seen reductions of 47% ($/KWH) in deregulated markets Identify energy consumed by your various processes; this is necessary in order to optimize them. Recommend power metering down to the MCC feeder level. This can be accomplished using electronic motor overload relays such as the Tesys-T with the power expansion module. EPA estimates the following savings are available: Drinking Water: 5-15% from Motors, Drives, Pumping System Improvements, 10-20% from Process Optimization & Control Strategies. Wastewater: 10-20% from Equipment Upgrades and 10-20% from Process Optimization. However, you have to monitor these various feeds to determine the impact of the improvements. A typical 10 MGD WTP could save more than $168,000/year Feeder level power metering facilitates participating in utility load shedding by providing adequate load information. Utility load shedding varies by area, but can be $15 per kW- month, or approx. $60,000 per year for shedding 1MW.
Schneider Electric 37 - Industry – Water – December 2012 Measurable Benefits of Energy Management Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits of Energy Quantified in dollars other applicable method Identify energy losses due to harmonic losses. More equipment today than ever creates harmonics: Ultraviolet disinfection, Ozone Generation, VFDs Harmonics create heat in motors and transformers, shortening their useful life significantly. They can also create vibrations in the motor shaft and other issues such as resonance. Identify contributors to energy penalties related to peak demand charges Base rate ($/KWH) can be increased up to 100% and is fixed for 1-3 years, depending on your contract. Identify contributors to energy penalties related to poor power factor Utilities charge penalties up to 100% of base rate for PF less than 90, adjusted monthly Identify contributors to energy penalties related to high harmonics Utilities charge penalty up to 100% of base rate, adjusted monthly Identify potential problems prior to failure; increase system reliability Reduced labor rate (Straight time vs. overtime), reduced acquisition costs (book price & expedited freight), reduced downtime (scheduled vs. catastrophic failure), reduced possibility of spillage or being out of compliance (EPA fine of $15,000 per day, individual operator loses their license; Dekalb County had a $50,000 fine for 10MG spill blamed on equipment failure) Logs, trends and records events for quick troubleshooting Reduced labor costs, reduced downtime, reduced possibility of non-compliance. (10-25% minimum) Disturbance direction detection can reduce mean-time-to-rectify Reduced labor costs, reduced downtime, reduced possibility of non-compliance. (10-25% minimum) Remote access allows experts to evaluate issues No travel time or expense, reduced downtime, reduced possibility of non-compliance, spillage, etc.
Schneider Electric 38 - Industry – Water – December 2012 Measurable Benefits of Energy Management Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits of Energy Quantified in dollars other applicable method Built-in communications allows for remote, automatic data acquisition Eliminates need for manual meter reading, also eliminates errors. Savings depends on number of meters and distances required to travel. See ROI calculator tab. View system status & reports, do diagnostics via web browser Reduces number of software licenses required. (Minimum $595 per seat) Can import power data into existing SCADA systems Allows for basic meter data inclusion in SCADA screens and in standard reports without purchasing and learning additional software. Approx. $3,000 savings (includes cost of SI creating additional SCADA screens) Capture and document power problems (dirty power, transients, sags, swells, lightning, grounding issues) Can be reimbursed by utility for damaged equipment only if you can prove problem came from them. On average, 30% of power quality and reliability problems come from outside the end-users' facilities. Identify excess capacity and balance loads Early detection and alarmingProtect against loss by making necessary corrections Implement energy awareness programSave energy. See Cost Savings tab below. Analyze usage patternsSave energy, minimize demand peaks Manage peak usageAvoid setting new demand peaks Power monitors watch & alarm on "out of tolerance" events, send alarms to pager, etc. Save time (60-70% of downtime to identify and find problem, only 30-40% to fix it). Maintenance crews dispatched to right place knowing what to expect. Sequence-of-Events Recording (SER) for event reconstruction Pinpoints root cause of failure. Eliminates trial-and-error method of event reconstruction, which may damage equipment by reclosing breakers into faults in order to localize problem.
Schneider Electric 39 - Industry – Water – December 2012 Measurable Benefits of Energy Management Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits of Energy Quantified in dollars other applicable method Gain business intelligence, benchmarking, best practices Reduce operational costs. EPA estimates 10-20% energy savings is available from process optimization in both water and wastewater treatment plants. Can monitor all utilities (Water, Air, Gas, Electricity & Steam) Simplified, consolidated reporting and analysis tool. Can be done in power monitoring software or existing SCADA software. Automated generator testing and documentation An improper generator test is as bad as not testing at all. Load them enough for long enough to avoid wet-stacking and other problems that cost you time and money. Reduces labor hours and training costs required to test generators properly. 8 hours per month. Insures generators will work when needed. Once per week for 1 hour x 2 technicians x $20/hr/tech x 52 weeks = $2080/year. Monitor standby generators including fuel supply Assures that backup capability is ready. Reduces downtime due to power outages, thereby reducing possibility of a critical process failure resulting in a spill, etc. Identify supply side faults EPRI study found that the average power problem from an external source cost industrial users $5,000 per occurrence. Minimize time-consuming investigation(s) after an event; share a "digital photograph" of the event with utility company. System-wide monitoring of plants & pump stations Tie into existing SCADA network to minimize costs. Implement PM/PQ software to maximize benefits.
Schneider Electric 40 - Industry – Water – December 2012 Measurable Benefits of Energy Management Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop Benefits of Energy Quantified in dollars other applicable method Remotely trip breakers and verify that contacts are open with no voltage on the bus. Reduces personnel exposure to arc fault situations. On average, 260 people die each year in workplace electrical accidents; that's 5 per week. The cost is incalculable. Lawsuits could be in the millions of dollars. Also eliminates the need to suit up in PPE. Peak-shave using standby generation Avoids setting higher demand charges, which can be as much as 100% of the base rate ($/KWH). There are some locations in which EPA has limited the use of generators for this purpose due to emissions. Power quality event reporting for events that may affect computers and electronics (control system & SCADA components) Reduce unplanned downtime and possible non-compliance due to electronics failures. EPA fine of $15,000 per incident, plus possible loss of operator's license. Remote monitoring of UPS status Provides failure warning, thereby avoiding I&C loss during power outage. Avoids wastewater spills from loss of status, loss of control. Can be used on remote pump/lift stations.
Schneider Electric 41 - Industry – Water – December 2012 Who Cares? OperationsMaintenanceEngineeringConsultantsSystems Integrator Reliability Fewer EPA fines due to increased system uptime. Fewer surprises. PQ Event alarming, Predictive maintenance UPS status, Load studies, Equipment utilization, Balanced loads System reliability is greater than without PM hardware, software & training. System-wide monitoring of plants & pump stations Energy Efficiency Reduce operating costs through benchmarking and best practices Establish baseline energy data from various processes. Benchmark your improvements. Take lead role in showing municipalities how to reduce their energy usage and their carbon footprint Energy trending, reporting and benchmarking done via SCADA and Historian Cost of Energy Verify billing, Rate negotiations, DR, Demand charges, Load shedding, PF & Harmonics penalties, Analyze usage patterns. Determine alternate operating schedules to minimize energy costs. Consultants can help their customers by specifying power monitors be tied into software systems Cost of Repairs Supply side faults, Predictive vs. reactive, Isolate harmonics, Harmonic analysis: heating, vibration and damage to equipment Minimized Downtime Problem identification, Direction detection, Remote access, SER, Logs, trends & waveforms, Safety Arc Flash: Remotely trip breakers, verify no voltage present Increase potential safety of electrical systems Engineering Expertise PowerLogic can monitor system for you. Warn of new demand peaks. Schneider Electric can augment your maintenance staff with PM/PQ experts. Schneider Electric can augment your engineering staff with PM/PQ experts.
Schneider Electric 42 | Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31 st, 2014 What is the Best Investment of $100,000 in the last 10 years? Amounts shown exclude return of initial investment
Schneider Electric 43 - Industry – Water – December 2012 Summary Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop We have seen that Energy Management is an effective tool for: Improving electrical system reliability Reducing the possibility for “stuff in the streets” or boil water advisories Identifying and Reducing energy consumption Lowering energy costs Lowering maintenance costs Verifying utility bills Getting reimbursed for supply-side damages Improving safety, reducing exposure to arc flash Meeting EPA’s desire for energy benchmarking in W/WW facilities What is that worth to your organization?
Schneider Electric 44 - Industry – Water – December 2012 Conclusion 1.Energy Management is an ongoing process, not a one-time event 2. W/WW Energy is one of the biggest expenses of all municipalities 3.Getting started isn’t as hard as you might have thought 4. Zero capital Investment options are available 5. There are very many financial aspects to Energy Management
Schneider Electric 45 | Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31 st, 2014 Questions? Mark Leinmiller Segment Manager Water Wastewater Competency Center 225 Townpark Drive, Suite 400 Kennesaw, GA Office: | Mobile: Mark Leinmiller Segment Manager Water Wastewater Competency Center 225 Townpark Drive, Suite 400 Kennesaw, GA Office: | Mobile: