The Key Tool in Energy Management Andrew Ibbotson Joe Flanagan Monitoring and Targeting.

The Key Tool in Energy Management

Andrew Ibbotson

Joe Flanagan

Monitoring and Targeting Monitoring and Targeting

Monitoring and Targeting (M&T)

Provides lowest payback savings

Provides excellent basis to identify, justify and monitor major projects

Provides most robust way of reporting back to Govt.

What is M&T

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

Identify where Energy is Used and Develop an Action Plan

Senior Management Commitment

Produce Reports to Monitor Energy Use Against Output

Review Performance and Action Plan

Implement Energy Saving Measures

Measure Energy Consumption and Production

Develop Targets

Audit

The energy management process

M&T System

Scoping StudyScoping Study

PeopleManagement Processes

Awareness & MotivationTraining

PeopleManagement Processes

Awareness & MotivationTraining

SystemsMetering & Data Acquisition

SoftwareAnalysis and Reporting

SystemsMetering & Data Acquisition

SoftwareAnalysis and Reporting

IntegrationIntegration

TechnologyProject IdentificationFinancial Evaluation

Engineering

TechnologyProject IdentificationFinancial Evaluation

Engineering

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

Awareness & Motivation

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

competitions)

T e a m A M e e ting5 M e m b e rs

B re w e ry 1P ro je ct C h am p ion(G ra h a m P o llo ck)

T e a m B M e e ting5 M e m b e rs

B re w e ry 2P ro je ct C h am p ion

(J im D e e s )

T e a m C M e e ting5 M e m b e rs

B re w e ry 3P ro je ct C h am p ion

(B ill S m ith )

B re w in g G ro upS te erin g G ro u p M ee tingC K , JD , G P & E n v iros

Meeting every 1-2 Months

Meeting every 2 weeks

Training

Methodology

Principles of a M&T programme

Technology

Boilers, Steam Systems, Refrigeration, Compressed Air, Drives & Motors, Lighting, Process Systems

Software

Data collection systems, M&T software and opportunities database

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 KPI’s Develop specific reports utilising M&T Boilerhouse, Refrigeration, CCL,

Production, KPI’s

m3

DateGAS

METER GAS USED

OIL METER

OIL USED

ELEC METER

ELEC USED

Fuel Use

reading cuft reading galls reading KWs Therms Target Delta CUSUM26-May-01 7774339 1,367,000 3278562 320 13034937 2 14216.87 976125 390,875- -35178827-May-01 7775184 845,000 3278588 260 13034938 1 8788.034 976125 131,125 -22066328-May-01 7776095 911,000 3278612 240 13034939 1 9474.434 976125 65,125 -15553829-May-01 7777127 1,032,000 3278635 230 13034942 3 10732.9 976125 55,875- -21141330-May-01 7777936 809,000 3278658 230 13034943 1 8413.634 976125 167,125 -44287.631-May-01 7778840 904,000 3278688 300 13034945 2 9401.668 976125 72,125 27837.4101-Jun-01 7779766 926,000 3278721 330 13034947 2 9630.468 976125 50,125 77962.41

Data Collection and Analysis Using a Spreadsheet

M&T Software Implemented6 Months

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

Opportunity Data Base

Project Review

Monthly Steering Group Meeting

- Total Savings

- Energy Usage

- Projects/Environmental Improvements

- Costs

The M&T Quality System

- Software Standards

- Training and Programme Standards

Project Implementation

Year 1Year 1

SystemSystem

Develop PeopleDevelop People

Implement TechnologyImplement Technology

Project PaybackProject PaybackBenefits 5% -15% SavingsLow Risk Utility SavingsEnvironmental Compliance

Scoping AuditScoping Audit

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

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

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

Setting Up M&TData Collection and Meters

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

Objectives

Some Initial Thoughts

How are energy costs monitored?

Who is acountable for usage?

Is the company using energy efficiently?

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?

Is Energy Used Efficiently?

How do we measure performance?

Who do we make accountable?

How do we make sure we achieve minimum energy costs?

Monitoring Systems

Level System

1 Monthly bills only

2 Monthly meter readings

3 Monthly readings checkedagainst output to produce aspecific energy ratio (S.E.R.)

4 Monthly monitoring system based on submetering

5 Weekly system based on submetering and targetedagainst output

Who is Accountable for the Energy

Level System

1 Finance Department

2 Services department

3 Each Production departmentaccording to some apportionment

4 Each department according tometered consumption

5 Each department with adjustments made for output

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

Electrical Audit

Determine major loads from distribution board ammeters

Estimate weekly running hours

Balance against weekly total of electricity consumed

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.

Steel Company

UTILITY BILL : €5 Million

Savings potential : 2% €100,000

Metering costs depend on payback criteria:

- 12 months payback = €100,000

Air CompressorsFridge CompressorsBottling LineSterilising LineCold storesOfficesGeneral LightingMain Hall VentilationBoilerhouseCartoning

Plant/Area kWh/wk £/wk £ p.a.

10,00018,000

9,00012,000

8,0003,0005,0006,0007,000

11,000

8001440

720960640240400480560880

40,00072,00036,00048,00032,00012,00020,00024,00028,00044,000

Unaccounted Balance 11,000 880 44,000

TOTAL 100,000 8000 400,000

Typical Energy Balance

C= A P t 100

C= Justifiable submetering expenditure (£)

A= Annual energy costs (£)

P= Potential savings (percentage)

t= Acceptable payback period (years)

Metering Justification

Electricity 3%

Gas/Oil 5%

Steam 5%

Water 5-10%

Comp. Air 10%

Typical Values of “P”

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

Metering Approach

Definable areas - Department

Definable plant - EAC

Preferably Accountable to one person - EAC

Significant energy costs - EAC

Department and Energy Account Centre (EACs)

Metering

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

Electricity Meters

Different Types

Different Fluids

Accuracy Considerations

Installation Considerations

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

Flow 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 -

Gas 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

Steam Meters

Steam Meter Costs

Meter TypeMeter Cost (£)

100 mm 150 mm

Orifice Plate 7,000 7,000

Variable Area 10,000 12,000

Vortex 6,000 7,500

Includes automatic pressure compensationIncludes automatic pressure compensation

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

Water Meters

Water Meter Costs

Meter Type

Meter Costs (£)

25 mm 50 mm 100 mm

Positive Displacement 250 600 700

Turbine - 7,00 1,200

Electromagnetic - 2,500 3,000

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

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

Heat Meters

Meter TypeMeter Costs (£)

100 mm 150 mm

Turbine (<130°C) 3,500 5,000

Electromagnetic (130 -180°C) 6,000 7,000

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

Oil Meters

In-house or sub-contract

Ease of access/remote reading

Correct units: m3/gallons

Don’t underestimate costs

Allow reasonable time-scale

Install meters with a 4-20 mA or pulse output if available

Installation

Data Collection

All Meter readings

Production Data

Ambient Temperature Data (degree days)

Auxiliary Data

Data Collection

Monthly

Weekly

Daily

Each shift

Each batch

Meter Reading Frequency

Manual

Hand held data logger

Totally automatic

Data Collection Methods

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

Manual / Portable 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

Automatic Data Logger

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

Error Checking

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

Production Data

Degree day data

Manual collection

- Max/min thermometers

Automatic collection

- Degree day logger

- Meteorological office

Important

Ambient Temperature

Degree Days

Day T max T min T AveDegree Days (To = 15.5°C)

Monday 8.5 6.5 7.5 8.0

Tuesday 7.6 6.5 7.0 8.5

Wednesday 5.0 3.0 4.0 11.5

Thursday 4.0 2.0 3.0 12.5

Friday 1.0 -.20 -0.5 16.0

Saturday 1.5 0.5 1.0 14.5

Sunday 3.0 0 1.5 14.0

Weekly Degree Days = 85.0

Auxiliary Data

Hours Run

- Compressors

- Large fans

- Machinery

Process Parameters

- Temperature

- Pressures

- Raw materials

Setting Targets

Data Processing Options

Spreadsheets

Databases

Statistics Software

Utility Software

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

Preliminary Data Analysis

For preliminary target setting

Preferably regression analysis

Requires familiarity with the processRequires familiarity with the process

Types of Target

E = a(constant)

E = a + bP(single regression)

E = a + bP1 + cP2 + _ _ _ _

Non-linear relationship

E = Constant

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

0 20 40 60 80 100 120 140 160 180

Production Tonnes/day

Com

pres

sed

Air

Use

m3/d

ay

Single Regression

y = 7.1393x + 14189

R2 = 0.8658

40,000

42,000

44,000

46,000

48,000

50,000

52,000

54,000

56,000

4,000 4,200 4,400 4,600 4,800 5,000 5,200 5,400 5,600 5,800

Tonnes/week

Th

erm

s/d

ay

Reactor 2 Production vs Steam Use

y = 0.4568x + 24.921

R2 = 0.8853

0

20

40

60

80

100

120

0 20 40 60 80 100 120 140 160 180

Tonnes/day

tes/

day

Correlation Significance

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

N r

10 0.767

15 0.641

20 0.561

25 0.506

30 0.464

35 0.425

40 0.402

45 0.380

50 0.362

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

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

Utility Dependency at a Dairy Water vs Milk Throughput

0

100

200

300

400

500

600

700

800

0 100 200 300 400 500 600 700 800 900 1000 1100

Bottle Wash Water (m3)

Milk Throughput (000’s Litres)

Utility Dependency at a Dairy Water vs Production Hours

0

100

200

300

400

500

600

700

800

0 5 10 15 20 25 30 35 40 45 50 55 60

Production Hours

Bottle Wash Water (m3)

Endothermic reaction

Unit 1 Production vs Natural Gas Use

y = -30.938x + 7126.9

R2 = 0.6364

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

0 50 100 150 200

Tonnes/day

Ga

s m

3/d

ay

Reporting and Sustaining the Programme

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

Reporting Frequency

Weekly

Monthly

Quarterly

Annually

Typical Weekly Report for a Milk Processing Department

Utility Account CentreActual Usage

Target Usage

Utility Cost (£)

Variation from Target

% £

Finished Milk Water (m³) 582 494 1,030 -17.8 -160

Milk Reception Water (m³) 622 728 1,136 14.6 192

New Processing (m³) 154 150 282 -2.7 -6

Process Floor Water (m³) 781 624 1,428 -25.1 -284

Milk Reception Elec (kWh) 43,300 40,865 5,044 -6.0 -284

New Process Elec (kWh) 8,250 7,480 964 -10.3 -90

Milk Separator (kWh) 6,570 6,580 764 0.2 0

Departments Totals - - 10,648 -6.0 -632

Typical Weekly Site Summary Report for a Diary

DepartmentActual

Usage (£)Target

Usage (£)

Variation from Target

% £

Processing 10,648 10,196 -6.0 -632

Bottling 5,076 5,248 3.3 172

Cartoning 7,168 6,976 -2.8 -192

High Temperature 5,706 6,216 8.1 506

Services 10,944 10,720 -2.1 -224

Site Totals 39,542 39,352 -0.5 -190

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

Trend Graphs

Energy Consumption

0

50

100

150

200

250

300

1 2 3 4 5 6 7 8 9 10

Energy (000’s KWh)

Week Number

Target

Actual

Variance

-20

-15

-10

-5

0

5

10

15

1 2 3 4 5 6 7 8 9 10

Variance (000’s KWh/wk)

Week Number

Cusum (Cumulative Sum)

TARGET ACTUAL VARIANCE CUSUM

(KWh) (KWh) (KWh)(KWh)

210,000

225,000

220,000

210,000

230,000

240,000

230,000

220,000

220,000

225,000

200,000

210,000

210,000

200,000

235,000

250,000

240,000

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

+20,000

+5,000

-15,000

-20,000

Cusum Plot

-1000

-500

0

500

1000

1500

2000

2500

1 2 3 4 5 6 7 8 9 10

Cusum (£)

Week Number

Arc Furnaces Energy Savings

Cumulativesum of ASHIFT

Cumulativesum of BSHIFT

Cumulativesum of CSHIFT

Cumulativesum of DSHIFT

(£)

WEEK

Organisation for Action

14

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

Energy Management in Action

Nominate an energy manager (project champion)

Establish an energy steering group

Set up energy improvement teams

Improve communication & awareness

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

Energy Steering Group

Senior Management

Production Managers

Engineering Manager

Project Champion

Finance/Quality People

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

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

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?

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

Typical Problems

Apathy

Lack of ownership and accountability

Lack of understanding of targeting process

Data errors

Lack of resources