The Key Tool in Energy Management

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Monitoring and Targeting

• The Key Tool in Energy Management
• Andrew Ibbotson
• Joe Flanagan

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Monitoring and Targeting (MT)

• Provides lowest payback savings
• Provides excellent basis to identify, justify and
  monitor major projects
• Provides most robust way of reporting back to
  Govt.

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What is MT

• A management tool to help reduce energy and
  utility usage using a proven methodology.
• A rigorous and well structured analysis of energy
  and production data
• Identification of new cost saving opportunities
• Maintains saving performance

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The energy management process
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MT System
Scoping Study
PeopleManagement ProcessesAwareness
Motivation Training
SystemsMetering Data Acquisition Software Analy
sis and Reporting
TechnologyProject Identification Financial
EvaluationEngineering
Integration
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Site Commitment

• Gain senior management commitment
• Construct / develop site energy and environmental
  policy
• Develop a specific implementation plan
• Time scales
• Resources (site metering and capital funds)
• Performance measures
• Project champion and site team

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Awareness Motivation

• High profile project launch meetings
• Define departmental reporting system
• Start training programme (software, methodology
  technical)
• Implement communications programme (policy,
  reports competitions)

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Training

• Methodology
• Principles of a MT programme
• Technology
• Boilers, Steam Systems, Refrigeration, Compressed
  Air, Drives Motors, Lighting, Process Systems
• Software
• Data collection systems, MT software and
  opportunities database

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Metering Review and Data Collection

• Map the utility, resource and production networks
• Establish the data collection methods
• Manual, Psion, File Transfer, Mixture
• Model the site in software
• Establish correlation and KPIs
• Develop specific reports utilising MT
• Boilerhouse, Refrigeration, CCL, Production,
  KPIs

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Inputs
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Data Collection and Analysis
Using a Spreadsheet
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Opportunity Database

• Captures all improvement ideas
• Allocates individual responsibility with
  deadlines
• Monitors idea progress
• Describes and quantifies the opportunities
• Potential Savings
• Investment Required
• Priority (Payback, Technical Difficulty)
• Reports the total project status

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Opportunity Data Base
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Project Review

• Monthly Steering Group Meeting
• Total Savings
• Energy Usage
• Projects/Environmental Improvements
• Costs
• The MT Quality System
• Software Standards
• Training and Programme Standards

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Project Implementation
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Case Study - UK Dairy Group

• 5 Site parallel implementation across UK
• 5 Teams of 6 people
• 20 Utility Sub Meters per site (10 water 10
  electric) 30K
• enManage implementation costs 120 K
• Utilities Savings 300,000
• Packaging Savings 200,000
• Product Savings 750,000
• Total 1,250,000

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Case Study - UK Dairy Group

• Projects
• Group condensate recovery improved from 15 to
  80. Water, effluent, gas and chemical savings
  60K. (Improved boiler response)
• Compressed air leakage minimised saving 30K
• Group CIP benchmarking exercise. Savings cica
  120K

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The Rewards

• Resource cost savings - scope to save
• Utilities 5 - 15
• Raw Materials up to 1
• Packaging 5
• Environmental Compliance
• IPPC
• ISO 14001
• Low Risk

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Setting Up MTData Collection and Meters
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Objectives

• To determine what should be monitored
• To determine areas of accountability
• To determine costs of further monitoring
  equipment required
• To propose a cost effective solution

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Some Initial Thoughts

• How are energy costs monitored?
• Who is acountable for usage?
• Is the company using energy efficiently?

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Typical Scenario

• Canned food manufacturer
• Energy costs 800,000 (120,000) per annum
• Average monthly bills
• Electricity 40,000
• Gas 26,000
• Bills passed to Services Department for checking
• Bill paid by the Finance Department
• Did they use energy efficiently?

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Is Energy Used Efficiently?

• How do we measure performance?
• Who do we make accountable?
• How do we make sure we achieve minimum energy
  costs?

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Monitoring Systems
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Who is Accountable for the Energy
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Information Required Prior to Audit

• 12 monthly energy bills and costs
• Distribution line drawings of all utilities
• Gas
• Electricity
• Steam
• Water etc.
• 12 monthly production figures
• Major plant ratings

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Electrical Audit

• Determine major loads from distribution board
  ammeters
• Estimate weekly running hours
• Balance against weekly total of electricity
  consumed

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Oil/Gas/Steam/Water Audit

• Can estimate against plant ratings and running
  hours
• Production load should be taken into account
• Balance against weekly total consumed
• Typically simpler than for electricity as fewer
  and better defined users.

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Steel Company

• UTILITY BILL 5 Million
• Savings potential 2 ? 100,000
• Metering costs depend on payback criteria
• 12 months payback 100,000

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Typical Energy Balance
Plant/Area
kWh/wk
/wk
p.a.
Air Compressors
10,000 18,000
800
40,000
1440
72,000
Fridge Compressors
36,000
Bottling Line
9,000
720
Sterilising Line
12,000
960 640
48,000
Cold stores
8,000
32,000
240
12,000
Offices
3,000
General Lighting Main Hall Ventilation
5,000
400 480
20,000
24,000
6,000
7,000
560
28,000
Boilerhouse
11,000
880
44,000
Cartoning
Unaccounted Balance
11,000
880
44,000
TOTAL
100,000
8000
400,000
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Metering Justification

• C A P t
• 100
• C Justifiable submetering expenditure ()
• A Annual energy costs ()
• P Potential savings (percentage)
• t Acceptable payback period (years)

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Typical Values of P

• Electricity 3
• Gas/Oil 5
• Steam 5
• Water 5-10
• Comp. Air 10

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Metering Approach

• Take 1 Million p.a. bill (Electric)
• 3 savings- 30,000
• Typically 20 meters (installed)
• Start with main services
• Air Comps.
• Fridge Comps.
• Boilerhouse
• Apportion remainder as distribution boards dictate

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Department and Energy Account Centre (EACs)

• Definable areas - Department
• Definable plant - EAC
• Preferably Accountable to one person - EAC
• Significant energy costs - EAC

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Metering
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Electricity Meters

• Simple and accurate
• Relatively cheap
• Turn down ratio - most current transformers
  inaccurate below 20 full current
• Majority of installation can be done whilst board
  is live
• Install meters with kWh kW read-out

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Flow Meters

• Different Types
• Different Fluids
• Accuracy Considerations
• Installation Considerations

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Flow Meters

• Orifice Plate Meters
• Variable Area Meters
• Turbine Meters
• Vortex Shredding Meters
• Electromagnetic Meters
• Ultrasonic Meters
• Rotating Lobe Meters
• Rotary Piston Meters
• Diaphragm Meters

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Gas Meters

• Suitable meters include
• turbine
• diaphragm
• rotating lobe
• Temperature and pressure compensation needed,
  ideally automatic for larger users
• Fairly accurate /-1
• Typical costs
• 25mm 50mm 80mm
• Turbine - 1,800 2,700
• Diaphragm 300 1,200 -

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Steam Meters

• Suitable meter types include
• Orifice plate
• Variable area
• Vortex shedding
• Rotary shunt
• Relatively expensive
• Accurate sizing very important
• Temperature and Pressure correction essential
• High on maintenance costs
• Adequate removal of condensate to stop water
  hammer is essential

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Steam Meter Costs
Includes automatic pressure compensation
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Water Meters

• Suitable meters include
• Rotary piston
• Turbine
• Vortex shedding
• Ultrasonic
• Electromagnetic
• Standard meters accept 40oC
• Relatively cheap if use positive displacement
  meters
• Critical for control of steam usage in some cases
• Check flow rates accurately and reduce pipe
  diameter if possible

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Water Meter Costs
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Compressed Air Meters

• Suitable meter types include
• Orifice plate
• Variable area
• Turbine
• Vortex shedding
• Metering considerations similar to those for
  steam
• Expensive, similar to steam meters
• Pressure and temperature compensation needed

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Heat Meters

• Measures flowrate, flow temperature and return
  temperature to calculate heat usage
• Expensive
• Accuracy of temperature measurement must be high
  as the temperature difference can be small

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Oil Meters

• Suitable meters include
• Turbine
• Rotary Piston
• Easy to install
• Relatively cheap i.e. around 1000
• Density (i.e. Temperature) compensation needed
• Beware of supply/return line burners!
• Tank dipping not sufficiently accurate

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Installation

• In-house or sub-contract
• Ease of access/remote reading
• Correct units m3/gallons
• Dont underestimate costs
• Allow reasonable time-scale
• Install meters with a 4-20 mA or pulse output if
  available

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Data Collection
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Data Collection

• All Meter readings
• Production Data
• Ambient Temperature Data (degree days)
• Auxiliary Data

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Meter Reading Frequency

• Monthly
• Weekly
• Daily
• Each shift
• Each batch

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Data Collection Methods

• Manual
• Hand held data logger
• Totally automatic

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Manual / Portable Data Logger

• Allow 1 minute/meter
• Ensure meters read at same time each week
• Ensure at least 2 people know location of all
  meters
• Produce meter reading form to reduce errors

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Automatic Data Logger

• Worthwhile for larger users
• Allow at least double meter costs for automatic
  data collection
• Cannot be justified on cost savings alone, must
  have additional benefits such as process control
• Can lead to data saturation

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Error Checking

• Meters with consistent errors can still be used
  since we are looking at trends in consumption
• Digit errors most common, normally compensated
  for at next reading
• Watch for meters going round the clock
• Software should pick up significant data entry
  errors

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Production Data

• Often not available straight away
• Energy monitoring period must be in line with
  production monitoring
• Collect all data to start with and then simplify
  later
• Simplify production data as much as possible,
  hopefully to overall tonnage

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Ambient Temperature

• Degree day data
• Manual collection
• Max/min thermometers
• Automatic collection
• Degree day logger
• Meteorological office
• Important

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Degree Days
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Auxiliary Data

• Hours Run
• Compressors
• Large fans
• Machinery
• Process Parameters
• Temperature
• Pressures
• Raw materials

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Setting Targets
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Data Processing Options

• Spreadsheets
• Databases
• Statistics Software
• Utility Software

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Requirements of Data Processing

• System should
• be easy to use
• be flexible and extensible
• link to existing data and systems
• provide a powerful tool for identification and
  analysis of savings opportunities
• provide true measure of performance
• empower managers to improve efficiency
• make individuals responsible

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Preliminary Data Analysis

• For preliminary target setting
• Preferably regression analysis
• Requires familiarity with the process

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Types of Target

• E a
• (constant)
• E a bP
• (single regression)
• E a bP1 cP2 _ _ _ _
• Non-linear relationship

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E Constant
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Single Regression
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Correlation Significance

• Minimum value of r such that odds are 100 to 1
  against it being due to chance

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Multi-Regression

• More than 1 variable
• Try to keep to a maximum of three variables
• Only use if you are sure of the relationship
  since regression is not very accurate on few data
  points

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What Does Energy Use Depend On?

• Output/Input
• (Production, Work Content)
• Plant running time
• Temperature
• (Product, External)
• Other factors
• Water content, Raw materials,
• Exothermic Reactions, Endothermic Reactions

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Utility Dependency at a Dairy Water vs Milk
Throughput
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Utility Dependency at a Dairy Water vs
Production Hours
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Endothermic reaction
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Reporting and Sustaining the Programme
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Need for Reporting

• To keep people informed of their weekly
  performance (against Key Performance Indicators,
  regression targets)
• To monitor long term progress
• To create feedback on improvements made
• To motivate people to improve

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Reporting Frequency

• Weekly
• Monthly
• Quarterly
• Annually

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Typical Weekly Report for a Milk
Processing Department
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Typical Weekly Site
Summary Report for a Diary
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Monthly Report

• Summation of 4 or 5 weeks
• In line with cost accounting procedures for
  monthly costing and monthly budgeting
• Year to date variance also important

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Trend Graphs
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Energy Consumption
Energy (000s KWh)
Target
Actual
Week Number
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Variance
Variance (000s KWh/wk)
15
10
5
0
-5
-10
-15
-20
Week Number
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Cusum (Cumulative Sum)
TARGET
ACTUAL
VARIANCE
CUSUM
(KWh)
(KWh)
(KWh)
(KWh)
210,000 225,000 220,000 210,000 230,000 240,000 23
0,000 220,000 220,000 225,000
200,000 210,000 210,000 200,000 235,000 250,000 24
0,000 235,000 230,000 230,000
10,000 15,000 10,000 10,000
-5,000 -10,000 -10,000 -15,000 -20,000 -5,000
10,000 25,000 35,000 45,000 40,000 30,000 2
0,000 5,000 -15,000 -20,000
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Cusum Plot
Cusum ()
2500
2000
1500
1000
500
0
-500
-1000
Week Number
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Arc Furnaces Energy Savings
Cumulative sum of A SHIFT
Cumulative sum of B SHIFT
()
Cumulative sum of C SHIFT
Cumulative sum of D SHIFT
WEEK
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Organisation for Action
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All Levels have a Role

• Chief Executive
• Commitment, Leadership
• Production Managers
• Holds departmental budgets
• Chief Engineer
• Designs process, facilitates production
• Energy Manager
• Investigates, monitors, facilitates
• Line Personnel
• Use and save energy

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Energy Management in Action

• Nominate an energy manager (project champion)
• Establish an energy steering group
• Set up energy improvement teams
• Improve communication awareness

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The Tasks of the Energy Manager/Project Champion

• Promote projects within the company
• Develop the action plan
• Identify, train and co-ordinate teams
• Discuss resources and timescales with senior
  management
• Measure progress
• Report frequently, simply and clearly
• Promote project successes

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Energy Steering Group

• Senior Management
• Production Managers
• Engineering Manager
• Project Champion
• Finance/Quality People

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Steering Group Purpose

• To discuss weekly, monthly, quarterly performance
• To discuss actions necessary to improve
  performance
• To allocate specific tasks to members of the team
• To assess success of actions
• Meets every 1-2 months to review progress

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Role of the Improvement Team(s)

• Monitor plant performance
• observation
• audits
• Identify problem areas
• Brainstorming sessions
• Identify opportunities
• Monitor implemented solutions
• Meet every 2-4 weeks

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Communication

• Are staff aware of
• The site energy strategy?
• Energy usage on site and the associated costs?
• Energy reduction projects implemented?
• The impact of their own role on energy costs?

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Typical Forms of Communication

• Training
• Newsletters and magazines
• Press
• Posters and stickers
• Videos
• Presentations and briefings
• Reports on actions and on progress
• Public displays of achievements

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Typical Problems

• Apathy
• Lack of ownership and accountability
• Lack of understanding of targeting process
• Data errors
• Lack of resources