Reducing Costs & Achieving Superior Plant Energy Performance Real-time Information & Best Practices in Energy Management Presented by Shiva Subramanya Executive Vice President EPS Corp

Introduction to EPS Energy & carbon reduction for industrial manufacturing Energy Intelligence: right information, right time, right context Enabling decisions that: –Improve energy efficiency & reduce costs –Achieve sustainability goals Founded in 2001 –HQ: Costa Mesa, CA –4 regional offices

Industrial Energy Use U.S. industrial sector Third of total energy consumption More than residential, commercial, transportation. Globally Half of all energy consumed USA - 33% Worldwide Source: AberdeenGroup 2009 By 2020, U.S. industrial sector will consume 51% of the 2020 baseline end-use energy in the United States

Top Market Drivers Need to reduce manufacturing costs Achieve or maintain competitive edge Be a thought leader in sustainability Economic / consumer uncertainty 80% 46% 20% 17% Survey of 240 manufacturers in 2009 “Cost Reduction” outranks “Sustainability”

5 Barriers to Efficiency Low awareness & attention Elevated hurdle rate Capital allocation High transaction cost Procurement & distributor availability constraints

Traditional Energy Management McKinsey: energy savings left to human & equipment entropy causes inconsistent results. Lawrence Berkeley National Laboratory Equipment entropy is just as common Some reductions seen… but temporary results

Best Practices Determine energy “cost per unit” Develop standards & targets Implement energy intelligence & management system –Enterprise-wide energy visibility Utilize real-time data & continuous monitoring

Develop Standards & Targets Establish a baseline Breakdown of current “as is” spend (gas, electricity, water) Which account for bulk of energy use?

Develop Standards & Targets Determine “Best in Class” goal Identify equipment for greatest savings Meter for data gathering & continuous improvement

Energy Visibility & Intelligence Invest in automated data collection Ensure solution includes –Dashboards –Alerting & event management –Analytics Integrate into: –Overall corporate strategy –Operations & maintenance

xChange Point Collects data at macro & device level Real-time information, enterprise wide Includes team of EPS energy experts example Energy Intelligence system

Utilize Real Time Data Reveals gaps in plant standards Why & how plant is using more energy than required Alerts play critical role Real-time information enables proactive solutions

Continuous Monitoring Automated, real time energy management Continually monitor equipment, processes & personnel behavior to avoid energy savings entropy –Equipment, controls, personnel change over time –Alterations in environment –Addition or removal of equipment –Degradation in calibration of controls / equipment Simple alterations to processes can impact energy reduction practices & lower per-unit-of-production costs –Staffing, training & maintenance

Continuous Monitoring

Conclusion Industrial Energy management Largely untapped resource Historical approaches deliver disappointing results Key to success: Automated, real-time energy management & Best Practices –Treating energy as a material resource –Stop entropy at the onset through continuous monitoring –Modifying processes & human behavior For low-cost/no-cost savings opportunities –Integrating technology & approach into corporate strategy & processes Key for persistent & measurable savings

Thank You! Shiva Subramanya Download the Energy Intelligence Best Practices epsway.com