Capitalizing on Energy Savings Incentive Capitalizing on

Capitalizing on Energy Savings Incentive
Programs for Industry
August 9, 2011
Featuring:
John Hoekstra, PE
William Haas, LEED AP
[email protected]
[email protected]
Moderated by:
John Reichling
President
NAEM Affili
Affiliate
t C
Councilil
Evolution of Sustainability Programs
● Energy & greenhouse gas (GHG) emissions are key targets
International Energy Policies
Global Regulatory /
Policy Action
International Energy Policies
● European union 20/20/20 targets
Initiative
2020 Target
2010 Actual
GHG (CO2) Reduction
20%
17,3%
Renewable Energy
20%
6,5%
Energy Efficiency
20%
13%
 Support for energy efficient technologies
 Feed-in Tariffs for distributed generation
 Volume quota’s around quantity of energy per product use
 Taxes and grants to support financial
International Energy Policies
● UK Carbon Reduction Commitment Energy Efficiency Scheme
(CRC)
 Established £12 per tonne CO2 tax for most companies
 Applies to Scope 2 electricity based emissions as well as Scope 1
 If you use more than 6.000 MWh per year, you are subject to the
regulation
 While the financial implications are carbon
carbon-based,
based utilization of energy
is at the core of the program
 Implementing automated meter reading (AMR) and establishing
reduction targets (absolute or intensity) provides better position in
“League Table”
U.S. Policies
● State Energy Efficiency Programs
Source: ACEEE State Energy Efficiency Scorecard (2010)
Source: Pew Center
7
U.S. Policies
● Renewable Portfolio Standards
Source: Pew Center
Source: Pew Center
8
Energy Benchmarking
● Methods to evaluate the
performance of your
facilities
 Rate “portfolio” of facilities
 Performance of facility
y vs.
facility
 Index to key metrics
● Identify
Id tif “best
“b t practice”
ti ”
conservation measures
● Drive reduced costs through
corporate project
implementation
Energy Audit Benefits
● Reduce energy usage & costs
 Typically identifies 10% to 30% in annual energy cost savings potential
● Identify where energy is used
● Identifies and prioritize potential opportunities
 Identify most cost effective options
 Determine efficiency upgrade Return on Investment (ROI)
 Support capital planning
● Environmental benefits
 Reduce use of fossil fuels
 Reduce GHG emissions and effect on climate change
● Optimize building comfort and system performance
Onsite Assessment Activities
●Interview site management
Assessment Review Areas
●Assess equipment efficiency
– Process Equipment
●Review building system
operations
– Building
u d g Sys
System
e Ope
Operation
a o
●Processes
Processes equipment
assessment
– Lighting & Lighting Control
●Continuous
C ti
d
data
t llogging
i
– Domestic Hot Water Systems
– HVAC Systems
– Operational Procedures
– Building Automation & Control
– Pumps & Motors
– Water Consumption Systems
– Renewable Energy Systems
– Utility Automation & Metering
Low / No Cost Measures
● Night Set-Back
Temperature Set-backs:
(5% - 10% HVAC energy savings)
Process Equipment Shut-down:
(2% - 3% equipment energy savings)
● System Scheduling & Set-point
Economizer Set-point:
(3% - 5% energy savings)
Reduce DHW Set-point:
(3% - 5% energy savings)
● Preventative Maintenance (5% – 10% HVAC energy savings)
HVAC Coil Cleaning
Filter Replacement
Refrigerant Charge
Capital Improvement Measures
● Motor Retrofits
High Efficiency Motors:
(5% - 10% motor energy savings)
VFDs:
(5% - 40% motor energy savings)
● Lighting System Upgrades
LED Exit Signs:
< 1 yr payback (70% - 90% savings)
Incandescent to CFLS:
< 1 yr payback (50% - 60% savings)
T-12s to T-8s:
< 3 yr payback (40% savings)
High bay Fluorescents:
< 5 yrs payback (20% - 30% savings)
Occupancy / Daylighting:
< 7 yr payback (15% - 30% savings)
● High Efficiency Air Conditioning Systems
Roof Top Units:
(10% – 30% HVAC energy savings)
Chillers:
(10% – 15% cooling energy savings)
Energy Efficiency Opportunities
High
g Performance T8 Lighting
g
g
Retrofit T12 lighting to T8
● Lamp
L
and
dB
Ballast
ll t replacement
l
t
 Magnetic to electronic ballast
 T12 (1.5”) to T8 (1”) lamp
 Option to keep fixture / reflector
Benefits
● Approx 40% energy savings
● Payback less than 3 years
● Increased light levels
● Better light quality
● Option to reduce fixture amounts
14
Energy Efficiency Opportunities
Lighting
g
g Controls
Lighting Control Strategies
•
•
•
Occupancy control
Daylighting
Ti
Timers
Benefits
•
•
•
15% to 30% savings
Payback less than 7 years
Reduced Maintenance costs
15
Energy Efficiency Opportunities
Compressed
p
Air Systems
y
- Leaks
Repair
p compressed
p
air leaks
● Target joints and fitting leaks
● Ultra sonic leak detecting
g tool
Benefits
● Savings
g average:
g
 $8 per hole (for a 1/64” hole)
 $126 per hole (for a 1/16” hole
● Low/No cost repair
● Immediate savings
16
Energy Efficiency Opportunities
High
g Efficiency
y Motors
High
g efficiency
y motors
● Use NEMA premium efficiency motors
● Target 5 HP or greater
● Motor Master savings tool
Benefits
● Up to 5% energy savings
● Longer run time = greater savings
● Maintenance savings
● Longer payback but often improves ROI on
planned replacement projects
17
Energy Efficiency Opportunities
Variable Speed
p
Drives
Install Variable Speed
p
Drives
● Optimally control motor speed and load
● Target
g motors using
g throttle control
● Used on Fans, pumps, drives systems
Benefits
● 5% to 40% energy savings
p
motor at optimal
p
p
point on
● Operate
efficiency curve
● Longer run time = greater savings
18
Energy Efficiency Opportunities
Steam Systems
y
– Leaks / Steam Traps
p
Repair
p steam leak and steam traps
p
● Water hammering
● Preventative maintenance
● Consider Reliability Center Maintenance
Program
Benefits
● 5% to 20% energy savings
● Maintenance savings
● Immediate payback
19
Energy Efficiency Opportunities
Steam Systems
y
– Efficient Boilers
Boiler operation
p
● Reduce boiler stack temperature
● Flue g
gas analysis
y
● Blow-down control
Benefits
● 1/8” hole = 600 Mbtu/yr
g
● Maintenance savings
● Immediate payback
20
Energy Efficiency Opportunities
Energy
gy Efficient Water Chiller
High
g efficiency
y chillers
● 0.5 kW / ton or higher for new systems
Benefits
● 10% to 30% chiller savings
● Increased control
● VSD control capabilities
● Maintenance savings
● Longer payback but often improves ROI on
planned replacement projects
21
Energy Efficiency Opportunities
Energy
gy Efficient Package
g or Split
p Systems
y
High
g efficiency
y chillers
● 13 EER or higher for larger units
● 18 - 23 SEER or higher for smaller units
Benefits
● 10% to 30% efficiency savings
● Economizer control capabilities
● Maintenance savings
● Longer payback but often improves ROI on
planned replacement projects
22
Project Examples
Intren
● 100k sq
sq-ft
ft Manufacturing /
office building
 Newly constructed facility
 20%
% energy savings
 100% funded through grants
● Energy Efficiency Measures
 T8 Lighting
 High Eff. RTUs
 Compressed air leak repair
 Diesel equipment charging station
scheduling
Project Examples
Leading
g Armored Vehicle Manufacturer
● Armored vehicle manufacturing
& assembly plant
 Facilitated Kaizen energy workshop
 25% energy
gy reduction
 Included staff training and energy
assessment tool development for
national program
Plot Title: Textron 1000 W Compressor # 3 2270459 Plot
Title: Textron 1000 W Compressor # 3 2270459
11/16/2009 (5:35 PM) ‐ 11/25/2009 (5:45 PM)
● Energy Efficiency Measures
250
 Compressed air leak repair
 High bay lighting
 Equipment start-up / Shut-down
scheduling
Monday through Wednesday
200
Current (Ampss)
 High efficiency motors & VFDs
Monday through Friday
150
100
50
0
5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 5:35 PM AM PM AM PM AM PM AM PM AM PM AM PM AM PM AM PM AM
Renewable Energy Opportunities
Solar
● Peak shaving power production
● Opportunities for system purchase,
power p
p
purchase agreements
g
((PPAs),
),
operating lease and other structures
● Creation of solar carve-outs in RPS
provide
id substantial
b t ti l incentives
i
ti
 Solar Renewable Energy Credits (SRECs)
 Solar Incentive Payments
● Qualify for Federal Investment Tax Credit
● Be cautious of messaging claims
Alternative Energy Opportunities
Fuel Cells
● Modular distributed g
generation systems
y
● Utilize natural gas or “biogas” as fuel
source
● Baseload power (vs. peaking for many
renewable technologies)
● Qualify
Q lif for
f renewable
bl benefits
b
fit under
d
most programs
 Federal Investment Tax Credit = 30%
 California Self-Generated
Self Generated Incentive
Program (SGIP)
● Significant CO2 emissions reductions
Energy Efficiency Funding Sources
● American Reinvestment and Recovery Act (Stimulus)
 Federal
ede a stimulus
st u us dollars
do a s for
o energy
e e gy efficiency
e c e cy a
and
d renewables
e e ab es
● Energy and Renewable Portfolio Standards
 State level mandates to promote energy efficiency and renewable
levels
 Typically support objective through incentive programs
● Utility Rebate Programs
 Utility based programs to incentivize energy efficiency and renewables
● Federal Tax Incentives
 National tax incentive based programs tailored toward business &
residential
27
Grant Funding Sources
Utilityy Energy
gy Efficiency
y Programs
g
28
Grant Funding Sources
Relevant Energy
gy ARRA Programs
g
● State Energy Program (SEP)
 $3.1 Billion in Funding
 Summary: Funding for state level energy
efficiency and renewable energy programs
 Funding Channel: States Energy Offices
● Energy
gy Efficiency
y and Conservation
Block Grants (EECBG)
ARRA
“Stimulus”
EECBG
SEP
 $3.2 Billion in Funding
 Summary: Funding for local energy efficiency
and conservation projects
 Funding Channel: Cities and Municipalities
29
SEP Funding Increase
(IL example)
Grant Funding Sources
Resources to Identifyy Funding
g Sources
● Perform Resource Assessment of Funding Sources:
 Identify state, utilities and national funding sources to support initiatives
 DESIRE www.dsireusa.org
> Tracks Federal, State, utility and municipal energy and renewable programs
 State Energy Offices
 Utility Companies
 IRS
 Private foundations
31
Best Practices
● Establish ownership for energy within the organization
 Corporate Energy Manager with authority and accountability
 Tie to performance incentives
● Management programs and tools to identify
identify, implement and
measure performance gains
 Energy and Carbon Management (ECM) Software/Service Solutions
 ISO 50001 – Plan
Plan, Do
Do, Check
Check, Act
● Utilize qualified third-party resources with experience to help
● Seek outside support for messaging wins
Questions for our speakers?
‘Raise your hand’ using the control panel on the right side of your screen.
John Hoekstra, PE
William Haas, LEED AP
[email protected]
[email protected]
Moderated by:
John Reichling
President
NAEM Affiliate Council
To ask a question
Click on the ‘Raise your hand’ icon in the control panel.
Contact Info
John Hoekstra
Hoekstra, PE
William Haas
Haas, LEED AP
J h h k t @
[email protected]
it
Willi
[email protected]
h
@ h