Benefits of Energy Management Presented by Mark Leinmiller.
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Benefits of Energy Management
Presented by Mark Leinmiller
Smart Water for Smart Cities Workshop1:00 PM Tuesday May 20, 2014
Schneider Electric 2- Industry – Water – December 2012
By end of this session you will know…
1. What Energy Management is
2. How Energy Costs impact operations
3. First steps in Energy Management
4. Alternative funding for Energy projects
5. Measurable benefits of Energy Management
Schneider Electric 3- Industry – Water – December 2012
What is Energy Management?
Ideally, it is a comprehensive, ongoing program involving all levels of W/WW system employees targeted at controlling costs associated with energy and maximizing system reliability.
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Schneider Electric 4- Industry – Water – December 2012
Why is Energy Management Important?
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Paying the bills• One of largest monthly bills• What % of your city/county energy
spend goes to W/WW ?• Dallas, TX @ 50%• Houston, TX @ 50%• Clinton, AR @ 65-70%• Tulsa, OK @ 60%
• Performance Indicator• Car: MPG
• What if dropped 20%• Specific Energy (KWH/MG)?
• RWI pump dropped 20%• Train 1 vs. Train 2
• 15% more efficient. Why?
Typical City Energy Usage
Schneider Electric 5| Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31st, 2014
We can’t wait for new
technologies
we don’t have toEfficiency solutions are available
now
Schneider Electric 6- Industry – Water – December 2012
Plant Profile
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Wastewater Treatment Plant• 70 MGD avg flow• 90 MGD design• Influent BOD5: 142• Effluent BOD5: 2.4• No trickling filters• Nutrient removal
• Average Annual Electrical Spend• 8.9 cents/KWH• 1,800 KWH/MG• $3,979,413
• Potential Annual Savings• $1.2M @ 30%
See your potential savings: • http://www.se-eml.com
Schneider Electric 7- Industry – Water – December 2012
What is my strategy?Energy & Sustainability Consulting – Get some help
●Strategic Energy Planning
●Sustainability Roadmaps
●Energy Star/LEED Assessments
●Energy Market Intelligence
●Energy Rebates & Incentive Support
●Doing nothing is a also a strategy
● Have to decide how valuable● How fits with local culture
Schneider Electric 8- Industry – Water – December 2012
How do I buy?Energy Procurement Services
●Energy Sourcing
●Renewable Asset Management
●Rate & Tariff Analysis
●Demand Response
●Energy Risk Management
Schneider Electric 9- Industry – Water – December 2012
How do I control?Power Reliability & Metering
●Metering Design & Commissioning
●Third-party Systems Integration
●Remote Energy Monitoring
●Emergency Power Supply Systems
●Power System Control
●Demand Control
Schneider Electric 10- Industry – Water – December 2012
How do I optimize?Infrastructure & Efficiency Upgrades
●Process Optimization
●Systems Automation & Integration
●Design/Build Energy Projects
●Performance Contracting
●Mechanical & HVAC Retrofits
●Renewable Energy Solutions
Schneider Electric 11- Industry – Water – December 2012
How am I performing?Measurement & Reporting
●Performance Assurance
●Energy & Carbon Reporting
●Operations & Maintenance Support
●Sequence of Events Recording
●Energy Data Analysis
●Cannot manage what you do not measure
Schneider Electric 13- Industry – Water – December 2012
How do I get started?
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Figure out where you are today• Get a baseline• Compare monthly power bills to flows• May have seasonal variations
• Look at penalties• Demand charges• Power factor charges• Other power quality issues
• Ask for help from trusted advisors• Consultants• Vendors
• Put together a long-range plan to get a handle on energy spend and how to reduce it. And keep it down!
• Energy prices are only going to go up!
Schneider Electric 14- Industry – Water – December 2012
How do I monitor?
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Start with what you already have• 3 Main Elements
• Monitoring Devices record data• Power meters• Motor protection relays• Circuit breakers with comms• UPS systems• Generator systems
• Software to accumulate & manage data, display information
• Existing SCADA • Purpose-built software
• Communications interface• SCADA network, RTUs
Schneider Electric 15- Industry – Water – December 2012
Build system out further
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Create some basic screens for trending• Trend usage data• Send data to historian• Correlate energy data with
operational data• Generate benchmarking reports
• As you start seeing the benefits, grow the system
• More metering means better data• Specific processes• Individual pieces of equipment
•Predictive maintenance• More reliability
Schneider Electric 16- Industry – Water – December 2012
Adding Power Quality to system
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Energy monitoring• How much energy consumed• Basic data (kWH)• Can be broken down by
process• Even down to the individual
equipment or motor level• Can be done with existing
SCADA• Can use many existing
devices from numerous manufacturers
• Tie energy consumed to flows (kWH/MG)
• Compare your plant to benchmarks (Energy Star)
• Power monitoring• Includes energy monitoring• Adds Power Quality aspects
• Sag, surge, spike, transient• Waveform capture, analysis
• Advanced features improve predictive maintenance, diagnostics, mean-time-to-repair, • Alarming• Direction detection• Sequence-of-events
recording (SER)• Harmonics, resonance
• Specialized PQ devices required
Schneider Electric 17- Industry – Water – December 2012
Power Monitoring
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
• Benefits to Operations• RELIABILITY• Capture disturbances
before equipment failure
• Recoup costs from power company for damages
• Determine, Monitor and Reduce Energy Consumption
• Reduce Energy Costs• Manage Electric
Demand• Central Command
Center
Computers & Process equipment
should ride throughevents inside the
“envelope”
Events outside the envelope
are severe enough
to cause misoperation
Schneider Electric 18- Industry – Water – December 2012
Power Monitoring
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
•Benefits to Engineering• Capacity planning• Easy access to data• On-line documentation• Increase reliability• Minimize downtime
• Increased safety• Easy access to data• On-line documentation• Increase reliability• Minimize downtime
• Benefits to Maintenance• Alarming / Paging• Automatic Meter Readings• Generator Testing• Identify Leaks / Waste
Schneider Electric 19- Industry – Water – December 2012
Environmental & Safety - Time and Money
●Arc Flash Events
●Optional remote breaker operation
●Enhanced Safety
●Minimize Protective Equipment issues
Schneider Electric 21- Industry – Water – December 2012
●Minimize Personnel Exposure
●Avoid the hazard of installing temporary portable monitors
●Avoid safety hazards to personnel connecting to energized equipment
Environmental & Safety - Save Time and Money
• Spot energy waste or inefficient users• Improve efficiency with accurate & timely
data. (kWh/gallon, per shift)• Drive ‘accountability’ by allocating costs• Double check the utility bill !
Typical 2 – 5% reduction
Reduce Utility Cost
• Identify “true” elec. gear capacity• Maximize equipment life (maybe defer
capital expense)
Optimize Equipment
Typical 2 – 5% reduction
• Real Time Alarms can notify of approaching breaker trip, or overheating motor, single phase alarm
• Diagnose power problems to avoid them next time
Improve Reliability
Additional 2 – 5% reduction
Schneider Electric 23- Industry – Water – December 2012
Energy Efficiency Renewables
Time
En
erg
y U
se (
kW)
Baseline RenewTime
En
erg
y U
se
(k
W)
Baseline EE
3 Part Energy Reduction Approach
Lowers energy demand by reducing ongoing energy use
Lowers utility energy demand by shedding loads during peak period only, may preserve grid integrity and/or provide an economic incentive
Demand Response
Utility Demand Before
Utility Demand Before
Utility Demand
After
Utility Demand
After
Derives some part of energy need from regenerative or non-depleting resources, thereby lowering total utility energy demand
Time
En
erg
y U
se (
kW)
Baseline Demand Response
Utility Demand Before
Utility Demand
After
Schneider Electric 25- Industry – Water – December 2012
Annual cost of doing nothing
Save or buy?• You can use the
savings to:• finance energy
efficiency projects
• finance infrastructure upgrades
Schneider Electric 26- Industry – Water – December 2012
1 Current Utility Budget
Energy Bill
Energy Efficiency Improvements
Reliability Improvements
Equipment Repairs &Replacements
Performance ContractingHere’s How It Works
Example of Your Annual Energy Budget:
After performance contracting, the budget remains the same as energy savings pay for the facility improvements.
Schneider Electric 27- Industry – Water – December 2012
Long Payback
Cost Savings
Quick Payback
Cost Savings
What Can We Get Through a Comprehensive Energy Efficiency Project?
• Real-time Energy Monitoring
• SCADA System
• VFDs
• Aeration System Optimization
• Biogas for CHP
• Optimize Digester Performance
Schneider Electric 28- Industry – Water – December 2012
Project Management
Performance Contracting
Approach:
One Company Accountability● General contractor
● Construction manager at risk● Subcontractor management
EnergyManagement
Bid-Spec Approach with Traditional Construction:
Multiple Accountabililty Sources● Client hires general
contractor as project manager
● Risky, expensive and time● Management of
subcontractors
Schneider Electric 29- Industry – Water – December 2012
Engineered Solution
Performance Contracting Approach:
Focus on Energy Efficient Operations and Design
● Maintenance of normal operating parameters
● Emphasis on long-term system performance and cost factors
● Holistic design that capitalizes on the interactions of the ECMs
EnergyManagement
Bid-Spec Approach with Traditional Construction:
Focus on Exceeding Operating Paramenters
● Energy efficiency can compete with operating parameters
● Emphasis not on long-term system performance
● Piecemealing ECMs doesn’t create synergy
Schneider Electric 30- Industry – Water – December 2012
Savings: Energy, Chemicals, Labor, Fines
Performance Contracting Approach:
Guaranteed Energy Savings Fund Improvements
● Savings are maximized over time when improvements are done at once
● Project designed for performance
● Measurement and verification of savings
EnergyManagement
Bid-Spec Approach with Traditional Construction:
Sporatic Savings Can Occur; Not Guaranteed
● Savings degradation over time if performance not made visible
● Focus is meeting specifications, not achieving savings
Schneider Electric 31- Industry – Water – December 2012
Financial Guarantee
Performance Contracting Approach:
Partner for Performance● Guarantee ensures a partner ● Vested interest in project
performance ● Accountable for results
EnergyManagement
Bid-Spec Approach with Traditional Construction:
Bid-Spec; On to Next Project● Not responsible for
savings being achieved or guaranteed
● No vested interest over the long-term
Schneider Electric 32- Industry – Water – December 2012
Financing & Funding Sources
Schneider Electric’s PC Approach:
Provide Options and Support● Municipal-lease financing,
bonds, or cash● Schneider Electric can help
procure financing packages● Maximum rebates,
incentives, and additional funding mechanisms
EnergyManagement
Bid-Spec Approach with Traditional Construction:
As Capital Funds are Available● Financing clients’
responsibility ● Client has responsibility of
researching/applying for additional funding/grants
Schneider Electric 33- Industry – Water – December 2012
City of Denison Case StudyDenison, TX
Project Cost$7,943,747
Guaranteed Annual Savings
$217,727
• Improvements to their Aeration Basin & Aerobic Digester including new fine bubble diffusion grids
• Replacement of 750 hp of blowers and 400 hp of pumps• Replacement of 3 old switchgear/MCC’s with Sq D switchgear• Lighting, EMS, HVAC
Project Scope
Project Enablers• City Manager (CFO) was a proponent; had previous experience
elsewhere with PC• Proposed improvements were already known issues• Budget $ already set aside for some improvements
Schneider Electric 34- Industry – Water – December 2012
Example Water ESPC Project
1
Current Energy Budget - $694,378
$544,073
$90,000
$60,305
Energy Bill
Energy EfficiencyImprovements
Equipment Repairs &Replacements
After PC
Water Plant – 10MGD – Surface Water
• Annual Energy Use and O&M Costs = $694,378
ECMs –
• Rebuild 3 – 450HP turbine pumps
• New high efficiency motors and drives on finished water
• Upgrade of SCADA system
• Upgrade of filter valve actuators
• Upgrade of chemical feed
ECM Costs = $2,423,918
Rebates/Grants/Incentives = $270,000
Guaranteed Annual Savings = $150,305 – 15 Yr Contract
Schneider Electric 36- Industry – Water – December 2012
Measurable Benefits of Energy Management
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Benefits of Energy Quantified in dollars other applicable method
Cannot manage what you do not measure. Power is approx 1/3 of O&M costs
Passively, 2-5% of energy bill due to Hawthorne Effect; know you are watching. Actively using PM, results will vary significantly. DoE white paper showed non-metered projects achieved 70% of estimated savings while monitored projects achieved 115% of anticipated savings.
Quantify equipment utilization; including seasonal variations
Avoid capital outlays for additional transformers, etc. by optimizing use of existing equipment.
Quantify equipment utilization; including seasonal variations
Eliminates the time and expense of manually performing load study measurements. Save $1,500-5,000 for each study.
Verify utility billing practices and ratesSavings is usually minimal; however, we have found up to 10% errors. That would equate to over $300,000 annually for an 80 MGD WWTP.
Provides the necessary data to negotiate better rates with utility
Have seen reductions of 47% ($/KWH) in deregulated markets
Identify energy consumed by your various processes; this is necessary in order to optimize them. Recommend power metering down to the MCC feeder level. This can be accomplished using electronic motor overload relays such as the Tesys-T with the power expansion module.
EPA estimates the following savings are available: Drinking Water: 5-15% from Motors, Drives, Pumping System Improvements, 10-20% from Process Optimization & Control Strategies. Wastewater: 10-20% from Equipment Upgrades and 10-20% from Process Optimization. However, you have to monitor these various feeds to determine the impact of the improvements. A typical 10 MGD WTP could save more than $168,000/year
Feeder level power metering facilitates participating in utility load shedding by providing adequate load information.
Utility load shedding varies by area, but can be $15 per kW-month, or approx. $60,000 per year for shedding 1MW.
Schneider Electric 37- Industry – Water – December 2012
Measurable Benefits of Energy Management
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Benefits of Energy Quantified in dollars other applicable method
Identify energy losses due to harmonic losses. More equipment today than ever creates harmonics: Ultraviolet disinfection, Ozone Generation, VFDs
Harmonics create heat in motors and transformers, shortening their useful life significantly. They can also create vibrations in the motor shaft and other issues such as resonance.
Identify contributors to energy penalties related to peak demand charges
Base rate ($/KWH) can be increased up to 100% and is fixed for 1-3 years, depending on your contract.
Identify contributors to energy penalties related to poor power factor
Utilities charge penalties up to 100% of base rate for PF less than 90, adjusted monthly
Identify contributors to energy penalties related to high harmonics
Utilities charge penalty up to 100% of base rate, adjusted monthly
Identify potential problems prior to failure; increase system reliability
Reduced labor rate (Straight time vs. overtime), reduced acquisition costs (book price & expedited freight), reduced downtime (scheduled vs. catastrophic failure), reduced possibility of spillage or being out of compliance (EPA fine of $15,000 per day, individual operator loses their license; Dekalb County had a $50,000 fine for 10MG spill blamed on equipment failure)
Logs, trends and records events for quick troubleshooting
Reduced labor costs, reduced downtime, reduced possibility of non-compliance. (10-25% minimum)
Disturbance direction detection can reduce mean-time-to-rectify
Reduced labor costs, reduced downtime, reduced possibility of non-compliance. (10-25% minimum)
Remote access allows experts to evaluate issues
No travel time or expense, reduced downtime, reduced possibility of non-compliance, spillage, etc.
Schneider Electric 38- Industry – Water – December 2012
Measurable Benefits of Energy Management
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Benefits of Energy Quantified in dollars other applicable method
Built-in communications allows for remote, automatic data acquisition
Eliminates need for manual meter reading, also eliminates errors. Savings depends on number of meters and distances required to travel. See ROI calculator tab.
View system status & reports, do diagnostics via web browser
Reduces number of software licenses required. (Minimum $595 per seat)
Can import power data into existing SCADA systems
Allows for basic meter data inclusion in SCADA screens and in standard reports without purchasing and learning additional software. Approx. $3,000 savings (includes cost of SI creating additional SCADA screens)
Capture and document power problems (dirty power, transients, sags, swells, lightning, grounding issues)
Can be reimbursed by utility for damaged equipment only if you can prove problem came from them. On average, 30% of power quality and reliability problems come from outside the end-users' facilities.
Identify excess capacity and balance loads Early detection and alarming Protect against loss by making necessary correctionsImplement energy awareness program Save energy. See Cost Savings tab below.Analyze usage patterns Save energy, minimize demand peaksManage peak usage Avoid setting new demand peaksPower monitors watch & alarm on "out of tolerance" events, send alarms to pager, etc.
Save time (60-70% of downtime to identify and find problem, only 30-40% to fix it). Maintenance crews dispatched to right place knowing what to expect.
Sequence-of-Events Recording (SER) for event reconstruction
Pinpoints root cause of failure. Eliminates trial-and-error method of event reconstruction, which may damage equipment by reclosing breakers into faults in order to localize problem.
Schneider Electric 39- Industry – Water – December 2012
Measurable Benefits of Energy Management
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Benefits of Energy Quantified in dollars other applicable method
Gain business intelligence, benchmarking, best practices
Reduce operational costs. EPA estimates 10-20% energy savings is available from process optimization in both water and wastewater treatment plants.
Can monitor all utilities (Water, Air, Gas, Electricity & Steam)
Simplified, consolidated reporting and analysis tool. Can be done in power monitoring software or existing SCADA software.
Automated generator testing and documentation
An improper generator test is as bad as not testing at all. Load them enough for long enough to avoid wet-stacking and other problems that cost you time and money. Reduces labor hours and training costs required to test generators properly. 8 hours per month. Insures generators will work when needed. Once per week for 1 hour x 2 technicians x $20/hr/tech x 52 weeks = $2080/year.
Monitor standby generators including fuel supply
Assures that backup capability is ready. Reduces downtime due to power outages, thereby reducing possibility of a critical process failure resulting in a spill, etc.
Identify supply side faults
EPRI study found that the average power problem from an external source cost industrial users $5,000 per occurrence. Minimize time-consuming investigation(s) after an event; share a "digital photograph" of the event with utility company.
System-wide monitoring of plants & pump stations
Tie into existing SCADA network to minimize costs. Implement PM/PQ software to maximize benefits.
Schneider Electric 40- Industry – Water – December 2012
Measurable Benefits of Energy Management
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
Benefits of Energy Quantified in dollars other applicable method
Remotely trip breakers and verify that contacts are open with no voltage on the bus.
Reduces personnel exposure to arc fault situations. On average, 260 people die each year in workplace electrical accidents; that's 5 per week. The cost is incalculable. Lawsuits could be in the millions of dollars. Also eliminates the need to suit up in PPE.
Peak-shave using standby generation
Avoids setting higher demand charges, which can be as much as 100% of the base rate ($/KWH). There are some locations in which EPA has limited the use of generators for this purpose due to emissions.
Power quality event reporting for events that may affect computers and electronics (control system & SCADA components)
Reduce unplanned downtime and possible non-compliance due to electronics failures. EPA fine of $15,000 per incident, plus possible loss of operator's license.
Remote monitoring of UPS statusProvides failure warning, thereby avoiding I&C loss during power outage. Avoids wastewater spills from loss of status, loss of control. Can be used on remote pump/lift stations.
Schneider Electric 41- Industry – Water – December 2012
Who Cares?
Operations Maintenance Engineering Consultants Systems Integrator
Reliability Fewer EPA fines due to increased system uptime. Fewer surprises.
PQ Event alarming, Predictive maintenance UPS status,
Load studies, Equipment utilization, Balanced loads
System reliability is greater than without PM hardware, software & training.
System-wide monitoring of plants & pump stations
Energy Efficiency
Reduce operating costs through benchmarking and best practices
Establish baseline energy data from various processes. Benchmark your improvements.
Take lead role in showing municipalities how to reduce their energy usage and their carbon footprint
Energy trending, reporting and benchmarking done via SCADA and Historian
Cost of Energy
Verify billing, Rate negotiations, DR, Demand charges, Load shedding, PF & Harmonics penalties,
Analyze usage patterns. Determine alternate operating schedules to minimize energy costs.
Consultants can help their customers by specifying power monitors be tied into software systems
Cost of Repairs
Supply side faults, Predictive vs. reactive, Isolate harmonics,
Harmonic analysis: heating, vibration and damage to equipment
Minimized Downtime
Problem identification, Direction detection, Remote access, SER, Logs, trends & waveforms,
Safety Arc Flash: Remotely trip breakers, verify no voltage present
Increase potential safety of electrical systems
Engineering Expertise
PowerLogic can monitor system for you. Warn of new demand peaks.
Schneider Electric can augment your maintenance staff with PM/PQ experts.
Schneider Electric can augment your engineering staff with PM/PQ experts.
Schneider Electric 42| Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31st, 2014
$0 $75,000 $150,000 $225,000 $300,000
Wilshire 5000
S&P 500
US Treasury 5 yr.
Energy SavingsMeasures
Jan 1997 to Dec 2002
What is the Best Investment of $100,000 in the last 10 years?
Amounts shown exclude return of initial investment
Schneider Electric 43- Industry – Water – December 2012
Summary
Schneider Electric – Session Title – Smart Cities for Smart Water: A Workshop
We have seen that Energy Management is an effective tool for:• Improving electrical system reliability• Reducing the possibility for “stuff in the streets” or boil water
advisories• Identifying and Reducing energy consumption• Lowering energy costs• Lowering maintenance costs• Verifying utility bills• Getting reimbursed for supply-side damages• Improving safety, reducing exposure to arc flash• Meeting EPA’s desire for energy benchmarking in W/WW
facilities
What is that worth to your organization?
Schneider Electric 44- Industry – Water – December 2012
Conclusion
1.Energy Management is an ongoing process, not a one-time event
2. W/WW Energy is one of the biggest expenses of all municipalities
3.Getting started isn’t as hard as you might have thought
4. Zero capital Investment options are available
5. There are very many financial aspects to Energy Management
Schneider Electric 45| Jeff M. Miller | 2014 MWEA & AWWA-MO Joint Annual Meeting | 10:30 Monday March 31st, 2014
Questions?
Mark LeinmillerSegment ManagerWater Wastewater Competency Center
225 Townpark Drive, Suite 400Kennesaw, GA 30144Office: 770.792.4842 | Mobile: 770.329.3878Mark.Leinmiller@Schneider-Electric.com www.schnedier-electric-water.com
46
Make the most of your energy™
http://www.schneider-electric-water.com
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