energy management: establishing a foundation for continued performance

ENERGY MANAGEMENT;Establishing a foundation for continued

performance

Patrick Verdonck & Steven Meun

Why Care?

Phase 1, the Basics or Low

Hanging Fruit

Phase 2&3 - Techniques to

Drive and Sustain

Performance

Confidential – © Inogen Environmental Alliance 2016

Why Care?

Increased efficiencies

Enhanced Brand Image

Reduced Business Disruption Risks

Less EnergyUsage

Less Waste Creation

Reduced WaterConsumption


1678 Mtoe

-20%

objective

Status

today

1842 Mtoebusiness

as

usual

2020

Projections from 2007

Projections from 2009

20% Energy saving objective

1474 Mtoe

* Gross inland consumption minus non-energy uses

Pri

ma

ry e

ne

rgy c

on

su

mp

tio

n*,

Mto

e

1400

1450

1500

1550

1600

1650

1700

1750

1800

1850

1900

2005 2010 2015

GAP

THE OBJECTIVE OF THE EU IS TO CLOSE THE GAP TOWARDS THE EUROPEAN 20% ENERGY SAVING TARGET

Why Care?


Pursuing the Ideal State

5

Long-Term Strategic Plan

Engaged & Motivated Employees

Compliance Focused

Reactive Anticipatory &

ProactiveBest-In-Class / Leader

• Compliance Focused

• Cursory Awareness

• Lack of Direction

• Minimal Management Support

• Engaged Employees• Goals and

Reporting• Clear Vision• Defined

Management Support

• Strategic Plan• Executive Accountability• Performance Data and Trends• Multi-Stakeholder

Engagement


The Tale of Two Approaches

Example: a compressed air leak may be discovered and fixed, but monthly energy usage still increases due to inefficiencies elsewhere and lack of a holistic and

monitored perspective on energy usage.

This discourages employees and leadership.

Antea Group6

Find-and-Fix Approach

Facility pursues energy reductionsin an opportunistic and ‘ad hoc’ manner.

While effective in immediately engagingemployees in ‘hands on’ action…

… successes often do not translate topositive performance in overall metrics.

Programmatic Approach

Facility establishes a programmaticapproach to energy (water) management.

While potentially more time/resourceintensive to implement…

… the result is strategic, sustained, andconsistent management of energy.


Following a Practical Path Forward

Antea USA, Inc.7

P H A S E 26-9 Months


Define and Deploy KPIs

Create Cross Functional Energy/Water/Waste Teams

Define and Manage Benchmark Data

Define and Deploy Reporting Process

Roll-out Program Across Enterprise

Define Long-term Stretch Goals

Review Progress and Adjust Goals and Programs As

Necessary

Formalize into Management Systems

Create Desired Culture for Continuous Improvement


Develop Energy Policy

Select Energy Champion(s)

Confirm Short Term Goals / Targets

Define Facility-Level Baselines

Conduct Assessments & Implement Quick Wins

(TOP10’s)

Why Care? The Foundation


Hanging Fruit


Drive and Sustain

Performance


Logically Attacking Opportunities

Starting With the Basics to gain momentum…

HousekeepingProcess

OptimizationRaw Material Substitution

New Technologies

New Product Design


Energy: Top 10 Basics

1. Reduce air pressure

2. Fix air leaks

3. Insulate pipes & valves

4. Shutdown idle equipment

5. Evaluate all set-points

6. Maintain HVAC

7. Collect steam condensate

8. Retrofit plant lighting

9. Fix steam traps and leaks

10.Train & involve employees

Why Care? The Foundation


Hanging Fruit


Drive and Sustain

Performance


HOW DOES MATURITY LOOK LIKE?

… a Maturing Processes Over Time

1. Optimized – Processes are all in place and

continuous improvement is evident

2. Quantitative – Statistic analysis of data

supports process objectives

3. Standardized – Processes are developed

and meeting minimum performance

requirements

4. Managed – Processes are documented to

work instruction level

5. Initial – Processes are being performed,

process owners may have been identified


… Building on Momentum

13



Define and Deploy KPIs

Create Cross Functional Energy Teams


Define and Deploy Reporting Process

Roll-out Program Across Enterprise

Define Long-term Stretch Goals


Necessary

Formalize into Management Systems (ISO50001)



Develop Energy, Waste and/or Water Policy

Select Energy, Waste, & Water Champion(s)

Confirm Short Term Goals / Targets

Define Facility-Level Baselines

Conduct Assessments & Implement Quick Wins

(TOP10’s)


Tip: Building Teams

Create a Sustainability Team to lead and coordinate activities between the various groups that will need to be involved in order for the energy project and program to be successful.

Establish a clear purpose for the team:

Create and lead an ongoing sustainability program

Perform a one-time energy reduction assessment

Involve people with interests in the program and who know the company.


Create Cross Functional Energy Teams


Tip: Data Tools

D AT A C O L L E C T I O N A N D

A N A LY S I S T O O L S

Identify common savings opportunities and create handbook of best practices

Create and use common “calculators” to ensure consistent analysis

Create templates for collecting and analyzing energy, water, and waste data

Develop and share case studies, including project analyses



Client Name/Logo

6. Lighting Standards

Lighting Tool - Home Page Template

Navigation

1. To Begin Go To General Information

2. Add Area Calculation Sheet

3. Roll Up Summary Tab

4. Lighting Tool Step by Step

5. Background Info: Lamp Types

6. Lighting Standards

7. Vendor Information

8. Additional Funding Information

9. User Icon & Map Key Information

10. Instructions


Tip: Employee Engagement

C O M M O N T E C H N I Q U E S F O RB U I L D I N G E M P L O Y E E A W A R E N E S S

Posters

Training opportunities

Idea generation contests

‘Find the most leaks’ contest or teams

Incentive and reward programs

Give out water/energy saving devices for employees to use at home

Set up volunteer opportunities

Tour the local energy supplier

Building employee awareness about why energy is important and the role all employees play should be immediate and ongoing.

The awareness program should focus on:

Building an understanding

Emphasizing the importance of involvement

Encouraging active involvement and communication

Awareness building must be frequent and continuous in order to generate excitement and

maintain attention!




Tip: Benchmarking

B E N C H M A R K I N G T O A S S E S S M AT U R I T Y

Develop scorecards to define baseline and track progress

Consider internal and external benchmarking

Share results – they provide important feedback

Dig deep to identify gaps in performance –technical and cultural gaps

18

Antea USA, Inc.


Necessary


CategoryLeading

CompaniesTC Facilities

1. Management Support, Oversight & Defined Responsibilities 3.6 2.4

2. Energy Policies & Commitments 3.3 2.3

3. Energy Review 3.4 2.3

4. Baseline 3.3 2.0

5. Key Performance Indicators 3.3 3.1

6. Objectives, Targets & Action Plans 2.9 2.3

7. Competence, Training & Awareness 3.3 1.6

8. Communication 3.4 2.0

9. Documentation 3.1 1.6

10. Operational Control 3.6 2.0

11. Design 4.0 2.7

12. Procurement 3.0 2.0

13. Monitoring, Measurement & Analysis 3.9 2.1

14. Compliance 3.7 3.7

15. Audits 3.7 1.6

16. Corrective Actions 3.7 1.9

17. Record Control 2.0 1.8

18. Steam Systems 3.2 3.0

19. Motors & Pumps 3.2 3.4

20. Refrigeration Systems 1.9 3.3

21. Auxiliary Utility Systems 1.5 2.8

TOTAL 3.2 2.4

Explanation/information: In this sheet all main questions of the energy benchmarking assessment are presented.

Calculated are the average values of each main question. These averages are divided into two groups: Leading

Companies and TC Facilities.

ENERGY BENCHMARKING TOOL


Tip: Management System

T I P S F O R P R A G M AT I C A P P R O A C H T O E N E R G Y M A N A G E M E N T

Manages all aspects of energy includingprocurement and use

Integration with other management systems possible

Ensuring success by:

Improving energy performance

In control

Knowledge of (business) variables

19

Antea USA, Inc.

Formalize in Management System (ISO50001)

P H A S E 39-18 Months • Applicable to ALL organisations/companies

• PDCA –cycle and requirements are common sense

• A standard based on existing ISO systems

• Certification possible

• Maintains legal compliance

• It saves energy in a positive manner

• Increase credibility

• Improves communication and cooperation

• Improves Operational efficiency