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The Role of Benchmarking in Promoting Strong Energy Management Systems. Walt Tunnessen US Environmental Protection Agency ENERGY STAR Industrial Partnership May 21, 2010. Evolution EPA Efficiency Initiatives. Early ’90 - Green Lights – Technology Focus

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the role of benchmarking in promoting strong energy management systems

The Role of Benchmarking in Promoting Strong Energy Management Systems

Walt Tunnessen

US Environmental Protection Agency

ENERGY STAR Industrial Partnership

May 21, 2010

evolution epa efficiency initiatives
Evolution EPA Efficiency Initiatives

Early ’90 - Green Lights – Technology Focus

Mid ’90s - ENERGY STAR - Performance Standards & Labeling

Shift Focus to whole buildings and organization management

Late ’90s - ENERGY STAR Building Benchmarks & Labels

Partner of Year Award focused on “Program” vs “Project”

Early ’00s - ENERGY STAR Guidelines for Energy Management

Mid ’00s - Industrial Plant Benchmarks / Multiple Building Benchmarks

Late ’00s – ENERGY STAR Challenge for Industry

issues in the market
Issues in the market
  • Upgrading the technology did not always improve performance.
  • U.S. companies tended to focus on selective projects rather than continuous improvement.
  • Efficiency gains from improved O & M and “behavioral” changes overlooked or discounted
  • Uncertainty in gauging performance
management systems approach
Management Systems Approach

Focuses on

  • Organizational practices
  • Team development
  • Tracking & Measurements
  • Capital & behavioral projects
  • Communication & employee engagement

ENERGY STAR Guidelines for Energy Management

standardization of energy management
Standardization of Energy Management
  • ISO 50001 - Energy Management Systems underdevelopment
  • ANSI MSE 2001:2008 – Energy Management Standard
  • European Energy Management Standards
  • ASTM standards being developed for:
    • Compressed systems, motors, steam systems, etc.
why energy management systems
Why Energy management systems?

Companies with strong energy management programs:

  • Achieve greater results
  • Identify & implement better projects
  • Focus on continuous improvement
  • Have greater access to capital
  • Establish energy efficiency cultures
  • Sustain energy savings over time

Most companies and sites do not have strong programs:

  • Many companies lack formal energy programs.
  • “Managing energy” is done through ad hoc projects
the role of benchmarking
The role of benchmarking

An energy management system without good benchmarks is like a ship at sea with out a compass!

Benchmarks are the waypoints towards improved performance!

a barrier to greater efficiency
Barrier

Uncertain bearing on efficiency

Solution

Provide a benchmarks as an objective measurement method of performance

A barrier to greater efficiency
benchmarking s place in energy management
Benchmarking’s place in energy management

ENERGY STAR Guidelines

for Energy Management

  • Can be based on comparison of management practices or energy data
    • practice benchmarking gives an idea of where to improve by identifying best energy management practices
    • energy data benchmarking informs how well an entity might perform and improve and the position of that entity in terms of energy performance
  • Benchmarking confirms if improvement projects have had an effect
types of benchmarking
Types of benchmarking
  • Internal
    • compares performance against internal baseline or benchmark
  • External
    • compares performance against a metric “outside” of the organization
    • identifies “Best in Class” performance
  • Quantitative
    • data-driven; compares actual numbers
  • Qualitative
    • based on best practices; compares actions
qualitative benchmarking
Qualitative Benchmarking

Energy Program & Facility Assessment Matrixes

Used to evaluate energy program practices & identify gaps

metrics shape approach
Metrics shape approach
  • Absolute
  • Intensity
  • Source vs. site energy
  • Normalized intensity
  • Ratings
the energy performance score

Fuel Efficiency:

MPG

Energy Efficiency:

1 - 100

The Energy Performance Score

Answers: “If all plants in the industry use energy as this one, what percent of plants in the country would be better, and what percent would be worse?”

energy star scores
ENERGY STAR scores
  • External
    • Define “best in class” for an industry or building type
  • Sector Specific
    • Industry sector-specific at 6 digit NAICS code (or more refined)
  • Whole facility / building level
  • All fuels and energy sources
  • Source energy intensity
  • Intensity based on production
  • Normalized for key variables
  • Performance ranked on a scale of 1 to 100
energy star benchmarking tools
ENERGY STAR Benchmarking Tools
  • 2 Formats: Energy Performance Indicators (EPIs) - Industrial
  • Portfolio Manager – Commercial Buildings
industrial focus
Industrial Focus

Collaborative initiatives to develop resources for the industry

plant energy performance indicators
Plant Energy Performance Indicators
  • Spread-sheet based tools
  • Enable a higher level of energy management
    • Provides industry wide comparison
    • Enables better goal setting
    • Empowers management to require greater energy performance from plants
    • Provides opportunity for EPA recognition
    • www.energystar.gov/epis
    • www.energystar.gov/industrybenchmarkingtools
application of benchmarking results

Reward & Learn

Invest & Tune

Tune

Invest

100

1

25

50

75

Application of benchmarking results

Best investment opportunities are in lower quartiles - greatest potential for improvement

RCx & O&M improvements yield savings and label candidates

High scorers provide lessons learned and label candidates

Energy Performance Score

19

energy star label
ENERGY STAR Label
  • Must have an Energy Performance Rating of 75 or higher
  • Must pass an environmental compliance screen
  • 55 ENERGY STAR Industrial Plants have earned the label
    • Auto Assembly
    • Cement
    • Wet Corn Milling
    • Petroleum Refining
    • Pharmaceuticals
    • Food Processing
    • Glass Manufacturing
gauging sector performance
Gauging Sector Performance

EPA’s Experience with the Automobile Assembly Sector:

  • Based on ENERGY STAR benchmarking of auto assembly plants, EPA has seen fuel usage in the industry improve by 12 percent over a five year period.
  • The level of inefficiency has also dropped by 1.0 mmBtu/vehicle.
  • The range of performance has also narrowed.
    • This means that while the best auto assembly plants have improved, the others have more than "kept up" with this improvement.
promoting internal benchmarking
Promoting internal benchmarking

ENERGY STAR Challenge for Industry

    • Plants establish an energy intensity metric;
    • Select an energy tracking system;
    • Create an Energy Tracking Planif their company does not have existing procedures.
    • Set a 10% improvement in 5 years goal.
    • Register their baseline annual intensity
    • Verify savings if goal is achieved.
  • Helps plants establish a culture of benchmarking that drives performance
  • Facilitates stronger management practices
results
Results

First sites to achieve the ENERGY STAR Challenge for Industry

summary
Summary
  • Empowers industry to shift the curve of energy performance
    • For most companies, the ENERGY STAR EPI is the first time they are able to see how their plants’ energy performance compares to that of their industry
  • Enables companies in the benchmarked industry to set competitive goals for plant improvement
  • Enables EPA to gauge improvement of an industry’s energy performance over time
contact
Contact

Walt Tunnessen

National Program Manager

ENERGY STAR Program

US EPA

(202) 343-9965

Tunnessen.walt@epa.gov

All resources found at:

www.energystar.gov/industry