- 1. Capturing Savings in the Industrial Sector NYSERDAs Approach
to Industrial and Process EfficiencyPresented by: Lucy Neiman, ERS
ACEEE Summer Study 2011 July 27, 2011Main Headquarters: 120 Water
Street, Suite 350, North Andover, MA 01845With offices in: NY, ME,
TX, CA, ORwww.ers-inc.com
2. Coauthors MarkDAntonio, ERS WendyMacPherson, NYSERDA
RichardRappa, CHA ThomasHudgens, Willdan 3. Presentation Overview
IntroductionProgram ConstructMarket
AssessmentApproachResultsSummary Q & A 4. Introduction 2008
Energy Efficiency & Portfolio Standard (EEPS) legislation to
reduce New Yorks electricity usage by 15% by 2015NYSERDA (New York
State Energy Research & Development Authority), public benefit
corporation established in 1975, to provide solutions to states
energy challengesIndustrials account for 11% of states energy
usageNY has 2nd highest concentration of data centers in the U.S. -
energy consumption doubling in 3-5 yrs.Significantprocess
andproduction efficiencyopportunities 5. Industrial & Process
Efficiency Program Fast-start program to support EEPS goalsFunded
by the Systems Benefit Charge (SBC) paid by utility ratepayers
Goals ElectricSavings840,000MWh
by2013GasSavings1,682,265MMBtusProgramIncentive Funding$108M 6.
Industrial & Process Efficiency Program Industrial Outreach
Identify and evaluate energy efficiency measures Explain program
incentives and application process Support project development and
implementationRegion Downstate Industrial Upstate Industrial Data
CentersIndustrialOutreach Contractor 7. Industrial & Process
Efficiency Program PRODUCTIVITYBASEDSAVINGS (More than the
Mechanical Room) Energysaved perunit produced Energy use is
embedded in every part Every piece of scrap has an energy component
Re-work uses additional energy Overtime requires additional energy
use Lean/6 Sigma/Productivity Projects all have an energy
componentIfwecancalculateenergysavings,wehaveanincentive 8. IPE
Incentives PerformanceBasedIncentivesUpstateDownstate
(ConEd)ElectricEfficiency$.12
/kWh$.16/kWhNaturalGasEfficiency$15/MMBtu$20/MMBtuEligibility:
Manufacturing or Data Centers. Contribution to the Systems Benefit
Charge (SBC) required for participation Measurement: Energy saved
per unit produced Incentive Cap: 50% of project cost or $5 million
per site Minimum: $30,000 project incentive (i.e., 250,000 kWh;
2,000 MMBtu) M&V: required >500,000 kWh, >10,000 MMBtu;
1,000,000 kWh lightingImprovedproductivity=lessenergy 9. IPE
Application Process Easy to Apply Submit application Assign
Technical Support Review Project Savings Purchase Order Issued
Customer Installs Project Verify installation M&V if required
Award incentivesNYSERDAOutreachContractorand
TechnicalReviewerSupportThroughout 10. Market Assessment
NYSERDATierLevelsDemandUsageTier1>2MW>15MkWhTier2375 kW
2MW1.5 15MkWh Started with 128 NYSERDA Key Accounts Charter to
reach out to Tier 1 and Tier 2 accounts in state Verified and
clarified NYSERDA Tier 1 list Prioritize potential customers into
Tier 1s and Tier 2s. 11. Market Assessment USCensusData
ByNAICS& county BuildingsPortal Energy savings/TierMECSdata
MMBtu/ employeekWh/ enterpriseMarket Penetration
ModelMNIdataTargetList Companiesby
countyandTierMarketCaptureRate:Tier1 99%,Tier2 50%,Tier3 50% 12.
Approach Targeted ParallelPathsCustomersPublic AgenciesTrade
AlliesEvents EDC EventsTier1Design&ServiceStateTrade Shows
Vendor MeetingsTier2IDA/EDC IBZ UtilitiesFederal DOE ITP/ SEN EPA
SEPVendor&Supply Chain TradeAssociations
&OrganizationsFinancialDOE Events Association Meetings Business
Roundtables 13. Approach CustomerContact BasicDataSiteVisit Plant
WalkthroughAnalysis(Customer/ vendor/Outreach
consultant)ScreeningAudit MeasureIDApplicationTechnicalReviewFunds
encumbered$IncentiveM&V(ifrequired)Project Implementation 14.
Success Factors Companys with corporate goals or global focus on
energy Identification of energy champions or internal cheerleaders
Strong relationship/ partnership with Outreach contractor/Account
Exec.Strong technical customer capabilities augmented by technical
support from Outreach contractors Initial engagement often with
facilities measures to build trust and relationships prior to
moving into process area Customer
focus/trust/resourcefulness/performance are key 15. Challenges
Current economic climate Industrial operations focused on
production not energy Limited customer staff resources to evaluate
projects Industrial management and staff have limited understanding
of NYSERDA programs Facilities only relate lighting and HVAC to
energy efficiency because lack understanding of process to energy
relationship Proprietary process world is difficult to penetrate
16. Results Progress thru June 2011*Program Status: Committed
Savings Electric (kWh)Gas (MMBtu)Program
goal840,000,0001,682,265Committed445,011,1991,296,28448%69%% of
goalProgress thru June 2011*Program Status: Funds Encumbered
ElectricGasProgram
budget$92,843,186$14,659,656Encumbered$46,613,540$13,162,857% of
budget50%90%* Since program inception in October 2009 17. Results
NYSERDA IPE Program Performance June 2011 18. Results NYSERDA IPE
Program Performance June 2011 ELECTRIC Actual Incentive $/kWhGAS
$0.10Actual Incentive $/MMBtu$10.15Avg kWh per project1,149,900Avg
MMBtu per project22,742Project Median kWh301,276Project Median
MMBtu5,557Avg Incentive per Project$120,448Avg Incentive per
ProjectCATEGORYkWhMMBtuFacility57%62%Process24%38%Data
center19%0.0%$230,927 19. Summary Significant increase in program
applications and encumbered savings since Outreach initiation
Increased market awareness of NYSERDAs programs Customers benefit
from high level of technical resources provided by Outreach
consultants Deep engagement with customers and strong longterm
partnerships drive continuous attention to energy reduction High
level of collaboration NYSERDA, industry players, vendors,
stakeholders, customers increases likelihood of reaching MWh
program goals 20. Q&AContacts: www.nyserda.org/ipe HOTLINE:
585-262-2640 x290 ERS: 978-521-2550 Lucy Neiman (ext. 223):
[email protected]