Wallner NEEA SEM Workshop 03-29-11

8/6/2019 Wallner NEEA SEM Workshop 03-29-11

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Agenda Part One

Strategic Energy Management

Management System Approach SEM definition

SEM Pyramid

Alignment with Sixth Power Plan

Threshold of a System

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Management System Approach

A management systemis the framework

of processes and procedures used to

ensure that an organization can fulfill alltasks required to achieve its objectives.

Modern Management Systems are basedon Continuous Improvement.(PDCA)

Management System Standardsrequireexternal audit for registration. (ISO)

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1950s 2000s

FOCUS ON QUALITYDEMING

THANK ME

LATER.

INDUSTRY REFINEMENT ENERGY

1980s 1990s

Management Systems First 60 Years


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StrategicEnergy Management

WHAT IS STRATEGIC

ENERGY MANAGEMENT

A systemof practices

that creates reliable andpersistent energy

savings.


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StrategicEnergy Management

Employee

Awareness

CapitalProjects

Technical

Training

PlantAssessments

PerformanceIndicators

Management

Systemsfor Energy

StrategicEnergyManagement

Programs

Benchmarking Analysis Software

Controls Metering

System

Standards

ISO 50001

Energy

ManagementElements

US DOE

Superior EnergyPerformance

CEIIEI

HPEM


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Alignment to the Plan

The Sixth Power Plan identifies three

levels of plant energy management:

Best: Integrated Energy Management

Better: Energy Project Management

Good: Plant Energy Management


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STRATEGIC ENERGY MANAGEMENT:

WHAT IS THE MINIMUM?

A Threshold of a System

Executive Sponsorship

Goal Setting

Tracking System


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Alignment w/ Objectives Resources


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Goal Setting


Energy team

Energy policy Tools


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Goal Setting


Goal Setting

Tracking System

Assessment Projects Measure Report


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Threshold of the System?


Goal Setting

Tracking System

System Right-Sized


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Agenda Part Two

NEEAs CEI

Sector Vision Mission GoalsPre Initiative Situation

CEI Offering

Maturity model

CEI Project Pipeline

Measuring Energy Savings

Key Learnings

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Vision and Mission

NEEAsVision

Mobilize the Northwest tobecome increasingly energyefficient for a sustainable future

Energy Efficiency is acornerstone of a vibrant,sustainable Northwest

NEEAsMission


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Industrial Sector

Accelerate adoption of industrial andagricultural strategic energy managementby addressing 50% of the regionselectrical load by 2014.

MissionEmbed strategic energy management

as a common industrial and agriculturalbusiness practice in the Northwest.

Goal


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Energy Management 2004-2005

Ad hoc piecemeal savings

effortsCoordinated holistic energy

managementIslands of uncoordinated

activityLeverage Industry Associations as

reference partners

Lone rangers doing goodthings

Executive sponsorship defining theorganizations commitment

Point solutions e.g. fix that

leak

Organizational transformation

addresses organization, people,systems, and measurement

Energy is something we use Energy is a resource we manage

Actual/Perceived State Desired State


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30 Years of Energy Efficiency Measures

Big Goals:25% reduction in energy intensity in 10 years

Yr 1 Yr 2 Yr 3 . . . . . . .

Increasing energy cost

and threat of carbon

legislation drive actionStand alone projects

snap-back

A cycle of continuous

investment without

continuous improvement

Consumers energy cost

Energy savings from

isolated programs


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NEEAs CEI

A holistic energy management system that leveragesthe natural law of process management to:

understand,

control, and

improve energy use.


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Market Transformation Theory

Our working hypothesis Implementation of CEI leads to

persistent measureable

energy savings

Testing the hypothesis

Deploy CEI through field advisors to a targetedindustry

Work with companies to raise the level ofimplementation maturity

Measure energy savings

Independently validate results


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CEI Deployment 2006-2010

Engaged Northwest FoodProcessors Association toleverage membershipawareness

32 facilities committedto CEI

25 facilitiesengaged in CEI

15 facilities selfsustaining CEI 2010


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Level 5 Self Sustaining Firm is maintaining NEEAs CEI independently of NEEA

Level 4 Practicing Firm is implementing plans, measurements, and is generating savings

Level 3 Committed Firm has a policy & plans, some dedicated energy management resources

Level 2 Engaged Management staff is participating in energy assessment process

Level 1 Aware/Receptive/Interested Firm is aware, key 1/1s explain the program,

management is interested

Levels of CEI Implementation Maturity


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NEEAs CEI Energy Savings

Establish baseline energyusage Initiate intervention

Observe change in energyusage

kWh

Baseline (Expected)

Behavior/O&M

(Estimated Top Down)

Physical System Measures& Engineering Calculations(Bottom Up)

Total Implemented (Actual)

NowBaseline CEI Starts

Bottom-up analysis captures savings from energy projectsTop-down analysis captures savings from all sources


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Energy Savings 2009 Results

Independent validation evaluated 18 sites in 2009 andfound:

Strong evidence that CEI is working in Food

Processing Sector All 18 facilities have made O&M changes as a

result of CEI

11 of 18 have implemented new capital projectssupporting CEI

They expect 15 of the sites to reach self

sustaining Level 5 in 2010 Implementation of CEI has resulted

in roughly 2% savings per year


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NEEAs CEI Savings to Date

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Key Learnings

Senior management commitment is vital

Organizations that demonstrate an existing

learning culture fare best

Industry associations/reference partnersaccelerate top management commitment andparticipation

Successful implementation appears to be tied

to internal and external champions Business conditions provide critical context for

plant readiness


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Industrial Energy Management 2010

Coordinated holistic energy management Success in FoodProcessing

Leverage Industry Associations asreference partners

Speeds industryacceptance of energy

management

Executive sponsorship defining theorganizations commitment

Senior management

commitment is vital

Transformation of organization, people,

systems, measurement

Success in Food

Processing

Energy is a resource we manage Success in FoodProcessing

Desired State Actual State

NEEA 2011 S i SEM


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NEEAs 2011 Steps in SEM

Continue to expand supply base

CEI version 2.0 release

ISO 50001 release

NW SEP Demonstration pilot wrap up

Montana Small Manufacturers cohort

C


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7 Habits of Highly Efficient Companies

1. Efficiency is a core strategy2. Leadership & organizational support is real and

sustained

3. The company has SMART energy efficiency goals4. The strategy relies on a robust tracking and

measurement system

5. The organization puts substantial resources intoefficiency6. The energy efficiency strategy shows demonstrated

results

7. The company effectively communicates efficiencyresults

Source: 2009 Pew Center on Global Climate Change28

Documents

Wallner NEEA SEM Workshop 03-29-11