Schneider Electric’s - iom.invensys.comiom.invensys.com/EN/SoftwareGCC14Presentations... · certified Energy Management system in place. ... Confidential Property of Schneider Electric

Schneider Electric’s

Approach to

Industrial Energy

Management

Michael MacKenzie &

Peter Hogg

2

Schneider Electric – Global Solutions, Digital Energy - Michael MacKenzie – May 2014.

Confidential Property of Schneider Electric

billion € sales (last twelve months ... $28b USD)

of sales in new economies (last twelve months)

people in 100+ countries

North

America

23% Asia

Pacific 27%

Rest of World 18%

Western

Europe

32%

Schneider Electric: The Global Specialist in Energy Management & Sustainability (Est. 1836)

3



October 31, 2011.

Billion. Source: Official United Nations population projections prepared by the Population Division of the Department of Economic and Social Affairs.

http://www.un.org/esa/population/unpop.htm

4



The energy dilemma

vs Energy demand By 2050 Electricity by 2030

CO2 emissions to

avoid dramatic climate

changes by 2050

The facts The need

Source: IEA 2007 Source: IPCC 2007, figure (vs. 1990 level)

Frequent

power outages

Rising

energy prices Climate change

Conflicts for

resource access

& control

5



Who uses the most energy?

31%

Industry Average facility can

reduce consumption by

10 to 20%.

• 25% savings would save 7%

of the world’s electricity.

• Motors account for over 60%

of electricity usage.

Our customers are challenged to reduce costs, energy

demand and emissions. We can help.

6


6

of the total OPEX is energy, majority of which is electricity 1/3 Waste Water treatment

of OPEX for reverse osmosis technology is electricity 57% Desalination

of the electricity used is for pumping 94% Water distribution

31% Cement production

of OPEX is energy

Food processing

of electrical energy used by pumps, compressors & refrigeration 78%

The energy footprint of key industrial sectors

7


Confidential Property of Schneider Electric 7

Congratulations Industrial Customers are executing

energy initiatives and delivering savings

.. However ..

Economic potential to improve energy

efficiency remains untapped in the

period to 2035

>50%

Energy Efficiency Potential IEA, World Energy Outlook 2012

8


What drives our customers to seek out Energy Efficiency?

8

9


9

What’s driving the need for Energy Management?

Regulatory compliance The need to meet and report on strict emissions standards and energy reduction targets are increasing.

Sustainability Companies want to reduce reduce resource waste through improved efficiency, lower their carbon footprint and develop a “green supply chain”.

OPEX reduction Energy is one of the largest operational expenses of many industrials. Reducing energy intensity increases production margins and has a net positive impact on EBIT.

10


10

2013 EU Directive on Energy Efficiency

5 December, 2015

By this date all non-SME enterprises must have completed an energy audit or have a certified Energy Management system in place.

Articles 7 & 8: “All EU-28 countries are thus required to use energy more efficiently at all stages of the

energy chain – from the transformation of energy and its distribution to its final consumption.”

Source: http://ec.europa.eu/energy/efficiency/eed/eed_en.htm

11



Customer preferences towards sustainability are changing

87% of Americans are more likely to buy from companies that commit to environmentally-friendly practices if products are of equal quality and price.

BBMG Conscious Consumer Report 2012

12



Evidence of increasing volatility of prices as more intermittent renewable energy sources are fed into the grid…

--Q4 2012 EU Quarterly Report on European Electricity Markets

Source: http://www.eia.gov/dnav/ng/hist/n9190us3m.htm

Energy price volatility impacts cash flow

70% drop in 14 months

62% increase in 12 months

13



Energy inflation is eating into product margins

161.4

103.6

75

100

125

150

175

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Inflation rates of selected consumer products (Jan 2005 = 100)

Energy cost

Industrial goods inflation†

* Electricity, gas, solid fuels and heat energy †Non-energy industrial goods Source: EuroStat HICP (Apri 2014)

14


How do we deliver Energy Efficiency & Sustainability?

14

15



Schneider Electric’s Lifecycle Approach

Quickly targets key strategic opportunities,

based on a company’s existing programs.

Design Strategy

Deliver Efficiency

Sustain Results

Delivers best-in-class, comprehensive

energy and sustainability strategies.

A holistic view of sustainability, energy supply and energy demand

Methodology Results

16


16

How do we deliver Energy Efficiency projects?

Step 3: Look for improvements.

Discover the root cause of energy over-consumption in order to improve energy efficiency.

Energy Improvement &

Optimization

Step 4: Plan for sustainability.

Track opportunities and identify projects for continuous improvement.

Ste

p 1

: S

ite E

nerg

y A

ssessm

ent

Continuous Improvement

& Sustainability Strategies

Energy Awareness

Energy Improvement

Energy Performance

Step 2: Become energy aware.

Get a detailed view of the energy used in the process using energy aware infrastructures.

Energy Control &

Monitoring

What is happening? Why is that happening? How can we sustain it?

17



Expected savings from Energy Efficiency projects

2%

Installation of meters

Source: Schneider best practices, US Department of Energy Metering Guide, Feb 2006

Increased employee awareness

3%

Bill allocation only

Improved awareness

10%

Facility tune-up

15% to 30%

Improved awareness, identification of O&M

improvements

Continuous improvement Action plans

Benchmarking, project improvements, continuous

attention

Visualization Optimization

18


Energy Supply & Procurement: Risk Advisory Services

19



Energy costs across 110 sites

$1 Billion

30% of production cost are

energy costs

Real-time data

• •

Case Study: Creating an Energy Management Strategy Driving changes in operator habits for a Global pulp and paper manufacturer

Target Green House Gas

by 2015 globally Opportunity: energy cost

savings globally

Visualization at operator

and machine level with

powerful dashboards

5% $50m $1.5m $6m

Savings in energy costs

in 2012 @ first pilot

Expected 2013/14 additional

savings for 15 sites globally

Behavioral change

translates into immediate

savings

• Traditional structural changes

to save energy exhausted.

• New approach needed to

reach ambitious global CO2

goal Energy consumption is added to traditional KPIs

such as quality and output at plant floor level

20



Energy Supply & Sustainability Services

Centralized point of contact

Leadership & guidance

Business needs analysis

Strategic plan development

Communication liaison

Load profiling

Energy contract optimization

Supplier negotiations

Market pricing analysis

Supplier review

Supply recommendations

Credit advisory

Roadmap planning

Carbon, water, waste reporting

Supply chain/life cycle analysis

Energy efficiency

Renewable/clean energy

Offset, credits, incentives

Carbon price forecasts

Tariff analysis

Rate comparisons

Utility negotiations

Tax exemptions

In-depth market analysis

Market outlooks

Proprietary forecasting

models

Risk Plan development

Hedging recommendations

Detailed position reporting

Tactical execution

21 Schneider Electric – Global Solutions, Digital Energy - Michael MacKenzie – May 2014.

Case Study: Risk Management & Strategic Procurement Helping a large construction company manage Diesel risk

Recommendations included a combination of options and swaps to hedge diesel risk for

a large construction company.

Large, publicly-traded construction company in the

western United States needed to manage its diesel

fuel risk exposure.

Used 5-6 million gallons of diesel annually at 15-20

sites.

Develop diesel risk strategy

Set business goals and options

Recommended a combination of options and

swaps to hedge diesel risk that typically covers

up to one year

Save 50 cent/gallon

for 3-4 months Avoided price hikes

22



Easily identifiable energy

efficiency opportunities

Less obvious, higher impact:

Energy Efficiency through automated

process and machine efficiency.

It’s a big challenge for Industrial companies to gain the appropriate

knowledge about where to look for less obvious, higher impact

Energy Efficiency Opportunities.

23



Goals: • Optimize Consumption

• Maximize availability &

ultilization of energy.

Collaborative architecture

bridging silos to yield

optimized plants &

processes.

Goals: • Optimize Production

• Maximize availability &

utilization of assets.

Connecting data silos to optimize energy consumption

Devices & I/Os

Energy Monitoring

Process Control

Energy Control

Process SCADA

Energy SCADA

Process MES

Energy Analytics

Production energy optimization: Reduced energy consumption per

unit of production & improved

emissions reporting.

Better consumption

forecasting, critical for

engaging in demand-

response programs.

Energy Control

& Monitoring

Process Control

& Automation

24


24

Example: Suggested ECM Summary

Opportunity Cost

1 Automate water pump VSD settings

No energy variation observed in water pumps with VSD in use.

High Potential

Reduce targeted pump energy consumption by

>15%

0

2 Improve Boiler 1 economizer

Poor maintenance of Boiler-1 economizer reduced inlet water temperature to

50°C from 70°C causing excess gas consumption of ~15% in November.

High Potential

Save up to 270k kWh of thermal energy per month

(~16%) on boiler gas use

$

3 Automate and Synchronize Ice water room pump VSDs with production

VFD’s in Ice water room pumps not synchronized with Production and constant

energy usage observed

Medium Potential

Reduce targeted pump energy consumption by

>10%

0

4 Install VSD on air compressors

Unloading time and energy usage in Comp1 and Comp 2 are 40~48% and 18%

and same can be avoided or reduced with VSD

Medium Potential

Reduce targeted compressor energy consumption by

>5%

$$

5 Install VSD on cold room auxiliary

Aux consumes ~1900 kWh per day. A VSD correlated with final production

could reduce consumption

Medium Potential

Reduce Auxiliary consumption by >10% $$

6 Interlock air compressor fan with compressor operation

Air compressor fan continuously operating even while compressor is off

Medium Potential

Save 42k kWh per month (~7%) of fan motor energy $

7 Balance load between Ammonia compressors

Little load on Ammonia cold water compressor-1. Transfer load to other

compressors.

Medium Potential

Save 88k Kwh per month (~3%) on compressor

energy

0

8 Use Boiler 3 as primary boiler for steam production

The energy intensity (kWh / ton of steam) of Boiler1 and 2 is much higher than

Boiler-3.

Medium Potential

Save 57k kWh of thermal energy (~3.5%) on boiler

gas

0

25



When energy monitoring is combined

with automation and control

infrastructures, energy efficiency can

grow by as much as 30%.”

26 Confidential Property of Schneider Electric

ECM 1: Automate water pump VSD settings

> We found that water pump energy consumption remains the same even when

production changes substantially. Possible reason may be VSD bypassed (or) the

frequency set point inside VSD is wrong.

Savings: Potential 15% reduction in pump energy consumption.

Load profile for water pump consumption Nov 18-25 (blue) versus daily production (yellow line)

27


27

ECM 6: Interlock air compressor fan with

compressor operation • Establishing an interlock between the compressor and fan operation will ensure when

compressor is OFF the fan is also OFF.

Savings: Estimated annual savings for all the 6 Fan units is around 42000 kWh, 7.3% of Fan

total consumption

Fan working but compressor is OFF

Load profile for Air compressor 1 and Fan 1 showing period when compressor off, but fan still operating

28



6.1M m3 sewage/year

120.000 EP

• Mechanical Treatment

• Primary Clarifier

• Biological Treatment

• Sludge Digesters

Energy Efficiency Control Loop Monitor, Optimize & Improve

Green Power

into public grid

Reduction in overall energy

consumption, while increasing

production

Energy consumption

to treat water

1996 - 90KWh/EP/a

2010 - 32KWh/EP/a

1996 use 3.6 GWh/a

2010 supply 6.1GWh/a

Case Study: Wastewater Treatment Plant in Austria Energy aware process evolves from energy consumer to green energy producer

20% 55%

Production Energy Usage

65% 6.1 GWh/a

KPI -KWh per EP/year Excess energy to grid

Purified Water

into local river

Bio Gas

for energy

generation

29



How do I optimize?

Achieving Energy Efficient Process Control

> Hydraulic Modelling

> Reducing Network Pressure

> Savings

> Water Loss down 10+%

> Pumping Costs down 5-10%

> Issues Resolution Speed

> ROI <2 years

30


Energy Measurement Water, Air, Gas, Electricity & Steam

Metering > Schneider Power Meters

> Open Protocols > Modbus

> IEC 61850

> DNP

> IEC 60870

Process > Energy Management Library (ODVA)

> Heat Exchanger

> Air Compressor

> Flow Meters

> Gas Flow

> Diesel Flow

> Solid Fuels

> Electric Generators

> Electric Device (single or 3-phase)

> Power Meters

> Boilers

> Virtual Devices

ION PM8xx PM53xx

31


Energy Visualisation Dashboards, Reporting & Metrics

32



Industrial

Energy Metrics

Contain

• Energy Consumption

• Per Time Period

• Per Production Unit

• Energy Targets

• Clearly defined objectives

• Scale of Achievement

• An analogue measurement for a

variable quantity

All Delivered in

Wonderware

Corporate Energy Manager

33



Case Study (1/2): Thermal Energy Optimization of Pulp Dryers Driving changes in operator habits for a Global pulp and paper manufacturer

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2.50 2.70 2.90 3.10 3.30 3.50

Tota

l The

rmal

Ene

rgy,

MM

Btu-

hr

Tons/Hr

Thermal Energy vs Production

WE Gas

Yankee Steam

DE Gas

Total

Power (WE Gas)

Power (Yankee Steam)

Power (DE Gas)

Power (Total)

Potential Savings:

60,780 MMBtu/year

3,706,974 kg/CO2

(*based on a conversion of 134.46 lbs CO2

per MMBTU)

Recommendation from initial assessment:

Reduce variability of Thermal energy by 1.5 standard deviations to 4.00 MMBtu/M.

34



2

4

6

8

10

12

14

0:00 6:00 12:00 18:00 0:00

MM

Btu

/MT

Military Time of Day

Total Energy Use per MT vs Time of Day

03/16/2012

04/04/2012

Target

1) Operating below target before

major event.

2) Major production event

occurs.

3) Operating inefficiently post

production event.

Case Study (2/2): How did we achieve it? Using a continuous improvement approach called “Lean Energy Management”

Savings: $304,000 per year, per line (*based on estimate of $5 per MMBtu current/future price of Natural Gas)

35


35

A methodical approach helps to maintain savings over time and identify new areas of opportunity

Savings maintained with ongoing supervision and maintenance

Declining results without ongoing supervision and maintenance

Implement Energy Conservation Measure

Baseline Performance

Challenge: How are savings maintained over time?

36



Premise

Energy = Effort

Same Action =

Same Effort

Different Energy =

Abnormal Situation P

roduction

Energy Consumption

Pumping System

37



Energy Enabled

Operations

Compressed Air (10%)

● Common issues: equipment wear and air leakage

● Measure: Energy In, Air/Pressure Created, Air Used

● Discover: Reduced efficiency of compression

Leakages in air system

Pumping System

● Common issues: equipment wear, leakage/blockage

● Measure: Energy In, Pump Configuration, Liquid

Delivered

● Discover: Set point changes

Leakages/Blockages in pipe

Pumps in Manual operation

Drive

(Elec)

Air

Comp

Production

Cycle

Process

Energy

Compressor

Pump

Effectiveness

Air

Leakage

Detection

38



Case Study: Energy Optimization in a Diamond Facility Addressing idle state energy consumption prevents production energy waste

SHUT DOWN!

NO FEED?

8%

Energy Consumption

Detected State:

Downtime / Idle state

energy consumption

Recommendation:

Idle state energy alarms

tell shift supervisor the

system is out of

automatic.

39 Confidential Property of Schneider Electric

For more information

Christian-Marc Pouyez

Michael MacKenzie

Peter

Hogg

Kim Custeau

40


©2014 Schneider Electric. All Rights Reserved.

All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies or their respective owners.

Schneider Electric’s - iom.invensys.comiom.invensys.com/EN/SoftwareGCC14Presentations... · certified Energy Management system in place. ... Confidential Property of Schneider Electric

Documents