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Effective Energy Management. Effective Energy Management. Develop baseline Identify and quantify savings opportunities Measure and benchmark to sustain efforts. 1. Energy Use Baseline. Billing analysis How energy is priced Plant energy balance Where energy is used

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Effective energy management1
Effective Energy Management

  • Develop baseline

  • Identify and quantify savings opportunities

  • Measure and benchmark to sustain efforts

1 energy use baseline
1. Energy Use Baseline

Billing analysis

How energy is priced

Plant energy balance

Where energy is used

Lean energy analysis (LEA)

What drives changes in energy use

Utility bill analysis
Utility Bill Analysis

  • Analyze rate schedule

  • Verify billing amounts

  • Check for saving opportunities:

    • Primary/secondary

    • Power factor correction

    • Meter consolidation

    • Demand reduction potential

  • Benchmark costs

Plant energy balance
Plant Energy Balance

  • 1) Estimate energy use from:

    • rated power

    • frac loaded

    • operating hours

  • 2) Calibrate sum against measured total energy use

Lean energy analysis
Lean Energy Analysis

  • Understand what drives changes in Energy

  • Quantify “Waste” and “Lean”

  • Model:

    Energy = a + b Production + c Weather

Actual temperature data
Actual Temperature Data


Model fuel use vs toa 3ph
Model Fuel Use vs Toa: 3PH




R2 = 0.92

Model fuel use vs production 2p
Model Fuel Use vs Production: 2P

R2 = 0.02 Prod Slope Negative

Model fuel use vs toa and prod 3ph mvr
Model Fuel Use vs Toa and Prod: 3PH-MVR

R2 = 0.97 Prod Slope = Positive

Disaggregate fuel use
Disaggregate Fuel Use


Weather = 28%

Production = 58%

Independent = 14%


Disaggregate electricity use
Disaggregate Electricity Use



= 10%

Production = 39%

Independent = 51%


Lean energy analysis1
Lean Energy Analysis

Called “Lean Energy Analysis”

because of synergy with “Lean Manufacturing”.

In lean manufacturing, “any activity that does not add value to the product is waste”.

Similarly, “any energy that does not add value to a product or the facility is also waste”.

Quantified leaness of fuel use
Quantified “Leaness” of Fuel Use

“Independent” is a metric of energy not added to product

Fuel LEA = %Production + %Weather

Fuel LEA = 86%

Quantified leaness of electricity use
Quantified “Leaness” of Electricity Use

“Independent” is a metric of energy not added to product

Electricity LEA = %Production + %Weather = 49%

Electricity LEA = 49%

Average lea scores p w 28 manufacturing facilities
Average LEA Scores (%P+%W)(28 Manufacturing Facilities)



Use lean energy analysis to discover savings opportunities
Use Lean Energy Analysis To Discover Savings Opportunities

LEA Indicators of Savings Opportunities

  • High “Independent” indicates waste

  • Departure from expected shape

  • High scatter indicates poor control

Low electric lea 24 indicates operating opportunities
Low Electric LEA = 24%Indicates Operating Opportunities

Low fuel lea identifies insulation opportunities
Low Fuel LEA Identifies Insulation Opportunities

High heating slope identifies heating efficiency insulation opportunities
High Heating Slope Identifies Heating Efficiency / Insulation Opportunities

High data scatter identifies control opportunities
High Data ScatterIdentifies Control Opportunities

Heating Energy Varies by 3X at Same Temp!

Departure from expected shape identifies malfunctioning economizers
Departure From Expected Shape Identifies Malfunctioning Economizers

  • Air conditioning electricity use should flatten below 50 F

  • Audit found malfunctioning economizers

Lean energy analysis2
Lean Energy Analysis

Quick but accurate disaggregation of energy use:

Quantifies the energy not adding value to product or the facility

Helps identify savings opportunities

Provides an accurate baseline for measuring the effectiveness of energy management efforts over time.

2 identify and quantify saving opportunities
2. Identify and Quantify Saving Opportunities

  • Identifying energy savings

    • Use “Integrated Systems + Principles Approach (ISPA)

    • ISPA is effective and thorough

  • Quantifying energy savings

    • Requires competent engineering

    • May warrant energy audit

    • May consider energy savings performance contract (ESPC)

Prioritize saving opportunities
Prioritize Saving Opportunities

  • Multiple filters

    • Financial return on investment

      • Rank versus other energy saving opportunities

      • Rank versus other requests for capital

      • Risk

    • Consistent with other priorities

    • Available and knowledgeable staff to manage project

Implement savings opportunities
Implement Savings Opportunities

  • Management commitment

  • Operator and maintenance education and buy in

3 measurement and benchmarking
3. Measurement and Benchmarking

  • Sustaining energy efficiency efforts requires that effectiveness of past efforts be accurately evaluated.

    • Verify the performance of past energy-efficiency efforts

    • Inform the selection of future energy-efficiency initiatives

    • Help develop energy-efficiency targets

  • Measurement

    • Extend LEA with sliding NAC and EI to measure energy efficiency improvement

  • Benchmarking

    • Compare NAC and EI for inter-facility benchmarking

Normalized energy intensity
Normalized Energy Intensity

1) Characterize performance with

‘Energy signature’ model

2) Remove noise with

‘Normalized annual consumption’ NAC

3) Track performance with

‘Sliding NAC’ analysis

4) Benchmark performance with

‘Multi-site sliding NAC’ analysis

Case study turn off make up air units during non production hours
Case Study: Turn off Make-up Air Units During Non-Production Hours

Heating Slope Decreases by 50%

Baseline Post-retrofit

Sliding nei
Sliding NEI Hours

Fuel NEI decreased by 23%

Independent of weather/production changes

Summary effective energy management
Summary: Effective Energy Management Hours

  • Develop baseline

    • Plant energy balance

    • Lean energy analysis (LEA)

  • Take action

    • Identify and quantify energy saving opportunities

    • Prioritize energy saving opportunities

    • Implement energy saving opportunities

  • Measure and benchmark to sustain efforts

    • Develop metrics for system energy efficiency

    • Measure energy efficiency improvement with sliding NAC and EI

    • Compare energy efficiency between facilities with NAC and EI