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Industrial Energy Management Assistance

Industrial Energy Management Assistance. Jennifer Eskil, Industrial Sector Lead Energy Efficiency / Bonneville Power Administration December 9, 2011. Federal Power Marketing Agency – Department of Energy (e.g., WAPA); been around since 1937, 74 years young!

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Industrial Energy Management Assistance

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  1. Industrial Energy Management Assistance Jennifer Eskil, Industrial Sector Lead Energy Efficiency / Bonneville Power Administration December 9, 2011

  2. Federal Power Marketing Agency – Department of Energy (e.g., WAPA); been around since 1937, 74 years young! Service area: Idaho, Oregon, Washington, and portions of Western Montana, California, Nevada, Utah and Wyoming. Markets and transmits power generated from the Federal Columbia River Power System1 (FCRPS) and sold to over 140 utilities in Pacific Northwest (PNW). Approximately 2,400 aMW of industrial load is served by PNW utilities. BPA’s current conservation program is Energy Smart Industrial (ESI). 103 utilities participating Who is Bonneville? 1The FCRPS includes 31 Federal hydro project dams, 1 non-federal nuclear plant and several small non-federal power plants (and wind generation); approximately 8,000 aMW of carbon-free power! 2

  3. Historical Background • Industrial conservation targets were not met. • Barriers • BPA • Utility • Industry (end user) • Detailed program preview was performed; highlighting these changes: • Improve management of project pipeline • Improve processes/accountability and dedicate roles • Improve marketing and standardization 3

  4. Original Roles and Communications 4

  5. Solution: The ESI Program • BPA management decided to hire “program partner;” June 2009 BPA selected Cascade Energy Engineering and their subcontractors. • In just four short months, BPA and program partner redesigned the industrial program offer: • More ‘boots on the ground’ - dedicated technical staff • Created innovative Energy Management pilot • Created a detailed Program Delivery Manual 5

  6. ESI Program Components Energy Smart Industrial Partner (ESIP) Face of the program Custom Projects Traditional Capital Projects Energy Management - Pilot Trade Ally Driven Energy Project Manager (EPM) Addresses End User Staffing Track and Tune (T&T) Addresses O&M Savings High Performance Energy Mngt. (HPEM) Addresses Corporate Management And Culture Small Industrial (SI) Addresses Small Projects NW Trade Ally Network (NW TAN) Addresses Lighting Projects Green Motors Initiative Motor Rewinds Technical Service Proposal (TSP) Consultants Provides Technical Consulting 6

  7. 6th Power Plan Summary: Sector Resources  7

  8. Utilities and ESI Energy Management 8

  9. Integrated Energy Management EPM General Energy Management Whole Plant Energy Management Tiers2 T&T/HPEM 2Source: System Optimization Measures Guide for 6th Power Plan, SEG, March 23, 2009 9

  10. ESI Energy Project Manager Energy Smart Industrial Partner (ESIP) Face of the program Custom Projects Traditional Capital Projects Energy Management - Pilot Trade Ally Driven Energy Project Manager (EPM) Addresses End User Staffing Track and Tune (T&T) Addresses O&M Savings High Performance Energy Mngt. (HPEM) Addresses Corporate Management And Culture Small Industrial (SI) Addresses Small Projects NW Trade Ally Network (NW TAN) Addresses Lighting Projects Green Motors Initiative Motor Rewinds Technical Service Proposal (TSP) Consultants Provides Technical Consulting 10

  11. Energy Project Manager Overview • ESI program co-funds EPM salary. • EPM serves as ESI program’s point-of-contact at industry. • Industry determines: person to fill position, level of compensation, energy savings goal. • One EPM can be shared at multiple industrial sites. • EPM follows spirit of traditional Resource Conservation Manager (RCM). 11

  12. EPM Goals and Funding • ESI Partner (ESIP) works with industry to set annual savings goal for EPM. • EPM funding directly tied to magnitude of goal. • Minimum goal: 1,000,000 kWh verified energy savings target each year. • Annual EPM funding 2.5¢ per kWh of target. • Annual funding minimum: $25,000; maximum: $250,000. • Year 2 and beyond – funding dependent on facility achievement of previous year’s goal. 12

  13. EPM and Corporate Goals 13

  14. EPM Progressive Payment Schedule 14

  15. Energy Project Managers, To Date… • There are 23 EPMs in place, with 10.9 aMW in completed projects (FY2010/FY2011). 15

  16. Regional Placement of EPMs • The 23 active EPMs are placed within 32 separate industrial facilities. • Note their geographic dispersion within BPA’s service area. 16

  17. EPM Assignment by Industry (by Sector) • EPM assignments align with 6th Power Plan Industrial Savings Potential. • ESI could explore EPM placement in chemical/refinery sub-sector. 17

  18. EPM Project Portfolios: Measures • Lighting remains #1 category, then refrigeration and process-specific measures. • The Energy Management pilot’s Track and Tune and High Performance Energy Management account for ~15% of the planned savings. 18

  19. EPM Impact on Project Uptake Through Feb 28, 2011 • In aggregate, placement of EPMs result in >2x increase in project uptake. 19

  20. Challenges/Opportunities for Near Future • Demonstrate true value of EPM by quantifying the impact, magnitude and speed of project completion. • Of the 23 active EPMs, analyze which represents long-term resource for industry. • Seek new engagements in industries not currently participating in EPM component. 20

  21. ESI Track and Tune Energy Smart Industrial Partner (ESIP) Face of the program Custom Projects Traditional Capital Projects Energy Management - Pilot Trade Ally Driven Energy Project Manager (EPM) Addresses End User Staffing Track and Tune (T&T) Addresses O&M Savings High Performance Energy Mngt. (HPEM) Addresses Corporate Management And Culture Small Industrial (SI) Addresses Small Projects NW Trade Ally Network (NW TAN) Addresses Lighting Projects Green Motors Initiative Motor Rewinds Technical Service Proposal (TSP) Consultants Provides Technical Consulting 21

  22. Track and Tune • Targets energy savings through ‘low and no cost’ operations and maintenance (O&M) improvements • Can be applied to entire facility or targeted sub-systems • Technical expert(s) identify O&M opportunities • Action items are co-funded • Baseline and savings documented and tracked via comprehensive tracking system • Incremental savings documented annually (3 or 5 year period) • Includes sustained savings incentive payments 22

  23. Track and Tune Savings Summary Executed Agreements (9) • ConAgra Foods: Patterson, Connell, & Boardman plants • Columbia Colstor: Woodland & Quincy • Anheuser Busch • Georgia Pacific: Toledo • Hermiston Foods • Linear Technologies 23

  24. ESI High Performance Energy Mgmt. Energy Smart Industrial Partner (ESIP) Face of the program Custom Projects Traditional Capital Projects Energy Management - Pilot Trade Ally Driven Energy Project Manager (EPM) Addresses End User Staffing Track and Tune (T&T) Addresses O&M Savings High Performance Energy Mngt. (HPEM) Addresses Corporate Management And Culture Small Industrial (SI) Addresses Small Projects NW Trade Ally Network (NW TAN) Addresses Lighting Projects Green Motors Initiative Motor Rewinds Technical Service Proposal (TSP) Consultants Provides Technical Consulting 24

  25. High Performance Energy Mgmt. • Primary mode of HPEM delivery – structured network group/cohort bring industries together (i.e., exchange info). • Regional Cohorts: • SW Washington participants: • 14 end users (31 aMW load) • Five utilities (Clark, Clatskanie, Cowlitz, Lewis Co PUDs and City of Richland) • Puget Sound cohort participants: • 13 end users (74.6 aMW load) • Two utilities (Seattle City Light and Tacoma Power) • May execute HPEM Agreement with Georgia-Pacific Toledo. 25

  26. Energy Management Successes • Leverage Northwest Energy Efficiency Alliance and Energy Trust of Oregon’s past efforts. • Energy Project Manager shows a broad uptake. • Track and Tune is gaining momentum, across a range of industries. • High Performance Energy Management industries share knowledge and experience. 26

  27. The Vision Going Forward • ESI program must be viewed as complete package. • The components interact and drive each other: • EPM work on HPEM • TAN work shows how to do it on smaller projects • Technical services (TSPs) drive CPI • Relationships are critical. (i.e., communication, trust, accountability) • Post-2011 preparedness is critical: • ESI program interaction with Post-2011 outcomes • Exceed the energy savings goals cost-effectively 27

  28. Going Forward, continued • ESI program must be viewed as complete package. • The components interact and drive each other: • EPM work on HPEM • TAN work shows how to do it on smaller projects • Technical services (TSPs) drive CPI • Relationships are critical. (i.e., communication, trust, accountability) • Post-2011 preparedness is critical: • ESI program interaction with Post-2011 outcomes • Exceed the energy savings goals cost-effectively 28

  29. ESI Program Results • Regional ESI program rolled out October 1, 2009. 3Includes savings from regional market transformation. 4,5Final summarization of energy savings under BPA review. 6,7These are projected savings, based on executed EM plans. 29

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