The Front Lines of Industrial Energy

ManagementPresented by:Marcus Wilcox, President, P.E.

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•

Offices in Oregon, Utah, and Washington–

Staff of 50 (incl. 35 Engineers)•

Industrial energy efficiency consulting–

Food processing, pulp & paper, petrochemical, manufacturing, etc.–

Refrigeration, compressed air, pumping, fans, controls, process upgrades –

we hunt brake horsepower!•

Services include:–

Traditional retrofit or new construction efficiency projects–

Tune-ups (i.e., kaizen blitzes or retro-commissioning)–

Energy management tools and software–

Design and management of utility energy efficiency programs•

Corporate energy management–

e.g. Sysco (110 distribution centers)–

e.g., SuperValu

(28 distribution centers)•

533 bills & 225 meter pulse monitors

Introduction to Cascade Energy

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Driver: PNW Regional 6th

Power Plan

•

800 aMW of industrial conservation by 2029–

Nearly all

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Driver: Washington’s I-937

•

Applies to utilities >25,000 customers–

17 WA utilities impacted

•

Drives renewable and conservation portfolios–

Requires implementation of “all available conservation that is cost-effective, reliable, and feasible”

•

Penalties for not meeting goals–

$50/megawatt-hour of shortfall

•

http://www.secstate.wa.gov/elections/initiative s/text/i937.pdf

http://www.secstate.wa.gov/elections/initiatives/text/i937.pdfhttp://www.secstate.wa.gov/elections/initiatives/text/i937.pdf

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Bonneville Power Administration

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Energy Smart Industrial Program–

Cascade is the “Program Partner”

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80+ public utilities participating, ≈1800 aMW of industrial load

–

Targets of 12 aMW & 15 aMW for FY2010 & 2011 respectively

–

Program components include:•

Traditional Custom (Capital) Projects•

Targeted Small Industrial & Lighting Trade Ally Offerings•

Groundbreaking Energy Management portfolio!–

Web site:

•

http://www.energysmartindustrial.com/

http://www.energysmartindustrial.com/

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EM in Energy Smart Industrial Program

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Energy Project Manager–

Addresses staffing shortfall

at end user level–

Co-funded site energy champion–

Funding linked to delivery of savings–

Purpose is to drive projects•

Track & Tune–

Targeting low and no-cost O&M

measures–

Co-funding of tracking systems, tune-up agent, action items–

Incentives for measured savings–

Purpose is to deliver savings•

High Performance Energy Management–

Targeting sustainable practices–

Structured network groups or one-on-one–

Incentives for measured savings–

Purpose is to drive projects AND

deliver savings

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Energy Trust of Oregon

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Production Efficiency Program–

Serves Portland General Electric, Pacific Power, NW Natural Gas & Cascade Natural Gas customers (in Oregon)

–

Reported 9 aMW in 2009, targeting 12 aMW in 2010–

Cascade is a Program Delivery Contractor (PDC)

–

Cascade is an Allied Technical Assistance Contractor (ATAC)

–

Transitioning from EM pilot to full offering in 2011•

Kaizen Blitz for industrial customers–

Web site:

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http://energytrust.org/business/incentives/industrial/productio

n-efficiency/

http://energytrust.org/business/incentives/industrial/production-efficiency/http://energytrust.org/business/incentives/industrial/production-efficiency/

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Case Study: Sysco

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Largest food services company in North America–

$37 billion in sales–

Restaurants, healthcare, educational facilities, and lodging–

110 food distribution centers (DCs)–

Freezers, coolers, dock, and dry warehouse space•

Rolled out program in March, 2006–

Announced by #2 at Sysco•

Aggressive goals:–

10% after 1st year–

25% after 3rd year–

Another 5% by 6th year•

Three-Prong approach–

Develop energy management program & tools–

Tune-ups at every

DC in 18 months–

Retrofits and high-efficiency new construction

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Major Energy-Using Systems at Sysco

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Industrial Refrigeration (40% to 60%)•

Warehouse Lighting (10% to 20%)

•

Dry Warehouse HVAC•

Battery Charging

•

Freezer Floor Heating•

Dock & Freezer Doors

•

Offices•

Truck Shops

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Development of Energy Management Tool

PulseMetering

UtilityHistory

HelpfulHints &News

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Rollout of Pulse Metering Equipment

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Site Tune-Up Process

1.

Gather preliminary information2.

Opening meeting with players3.

2 to 5 days of onsite identification and implementation–

Experienced energy engineer–

Experienced technician (e.g. refrigeration)4.

Closing meeting with players AND management5.

Delivery of final report–

Summary of completed action items–

List of pending action items with support and priority6.

Regular scheduled follow-up with Energy Champion to track performance and action item status

7.

Savings typically 10% to 15%–

Some as high as 50%!

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Site Tune-Up: Listening & Mentoring

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Site Tune-Up: Reviewing Equipment

Incorrect Coil Liquid Feed

Dirty Evaporators Tuning Regulators

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Site Tune-Up: Evaluate Control System

FixedDefrost

Schedule

FanCyclingDisabled

ExcessiveHotGas

In many cases, operators are either unaware of efficiency features, or are

hesitant to utilize them. In some cases, use of the feature is daunting.

RuntimeDefrost

Available

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Site Tune-Up: Immediate Impact

Plantwide Impact of Commissioning: Before & After

400

500

600

700

800

900

1,000

1,100

1,200

10/05 10/10 10/15 10/20 10/25 10/30 11/04 11/09 11/14

Date

kW

CommissioningChanges on 10/25

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Action Item Management

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Pending Action Items are posted to the EM site

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Energy Champion is responsible to complete them

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Implementation is tracked at the site and corporate level

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Statistics of Action Item completion is tracked relative to improvement

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Benchmarking Across Company

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Cubic feet weighted by freezer, cooler/dock, and dry as well as average wet bulb for a normalized “Efficiency Factor”

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Entire company can be benchmarked–

Rank within company–

Rank within benchmark group–

Rank within region•

Top 25% is desirable•

Bottom 25% is undesirable!•

This report is seen across company.

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Example: Sysco -

Toronto

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Example: Sysco –

Virginia

BackslidingIdentified &Remedied!

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Example: Sysco -

XXXXXX

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Companywide Performance

Companywide Energy Intensity

0

1

2

3

4

5

6

Jan

Feb

Mar

Apr

May

Jun Jul

Aug

Sep

Oct

Nov

Dec

kWh/

day/

1000

ft3

200420052006200720082009

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Performance Versus Baseline Period

SYSCO Broadline Monthly Savings vs Baseline Period

0%

5%

10%

15%

20%

25%

30%

35%

Apr-0

6Ju

n-06

Aug-0

6Oc

t-06

Dec-0

6Fe

b-07

Apr-0

7Ju

n-07

Aug-0

7Oc

t-07

Dec-0

7Fe

b-08

Apr-0

8Ju

n-08

Aug-0

8Oc

t-08

Dec-0

8Fe

b-09

Apr-0

9Ju

n-09

Aug-0

9Oc

t-09

Perc

ent

31.7% Savings

Projected 6 Year Savings: $100 million

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Sysco Lessons Learned

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Address both simple and complex systems or processes•

Focus on solutions, not blame•

Include everyone, particularly difficult people•

Emphasize that Functional ≠

Efficient•

Have strong corporate or management support•

Have motivated customer staff–

Maintenance and operator hands dictate energy use•

Target strong system or process energy expertise for identification of opportunities

•

Focus on implementation, not simply identification–

Do it now if you can•

Utilize a simple tracking system–

Should be used by empowered and motivated personnel–

Designed to prevent or quickly identify back-sliding–

Acknowledge limited bandwidth of customer staff•

Empower management with simple but significant reporting•

Leverage a competitive environment–

e.g., Facility-to-facility comparisons–

e.g., Industry benchmarks

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What Are End Use Customers Asking For?

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Focus on immediate, clear results•

Minimal use of staff time

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Both short & long-term strategies•

Deep expertise in systems & processes

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Help with staffing shortfall•

Integration with existing Lean, Six-Sigma, etc.

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Comprehensive, holistic programs•

Protection of confidential information (e.g. production, processes)

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M&V that is as short and simple as possible•

Mix of capital projects & energy management

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Regional consistency in terminology and programs•

Minimize multiple parties “here to help you”

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What Are Utilities Asking For?

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High-performance M&V procedures–

High realization rates–

Method to claim annual incremental improvement•

Guarantee that double-counting cannot occur–

Could have overlapping capital & EM projects•

Ongoing tracking of performance•

Well-documented processes to account for changes in variables such as:–

Production levels–

Production mix–

Expansions–

Weather•

Processes that allow maximum measure life to be claimed–

Claims vary from 1 to 10 years of measure life–

Depends upon 1) rigor of M&V and 2) long-term tracking

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Starting an Industrial EM Program?

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Make it easy to participate•

Emphasize short payback & low cost•

Emphasize minimal intrusion & time for customer•

Recognize limited customer staffing•

Don’t obsess over free ridership or other common DSM program stumbling blocks

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Don’t make participation contingent upon release of highly confidential data

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You must push program to the right people–

“Build it and they will come”

will fail•

Collaborate regionally for consistency•

Tightly integrate EM into traditional DSM programs•

Remember that the utility needs savings as much or more than the end user–

Don’t treat the end user like you are doing them a favor–

This is a partnership

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Questions or Feedback?

Marcus H. Wilcox, President, P.E.Cascade Energy Engineering, Inc.

marcus.wilcox@cascadeenergy.com

The Front Lines of Industrial Energy ManagementIntroduction to Cascade EnergyDriver: PNW Regional 6th Power PlanDriver: Washington’s I-937Bonneville Power AdministrationEM in Energy Smart Industrial ProgramEnergy Trust of OregonCase Study: SyscoMajor Energy-Using Systems at SyscoDevelopment of Energy Management ToolRollout of Pulse Metering EquipmentSite Tune-Up ProcessSite Tune-Up: Listening & MentoringSite Tune-Up: Reviewing EquipmentSite Tune-Up: Evaluate Control SystemSite Tune-Up: Immediate ImpactAction Item ManagementBenchmarking Across CompanyExample: Sysco - TorontoExample: Sysco – VirginiaExample: Sysco - XXXXXXCompanywide PerformancePerformance Versus Baseline PeriodSysco Lessons LearnedWhat Are End Use Customers Asking For?What Are Utilities Asking For?Starting an Industrial EM Program?Questions or Feedback?