ENERGY AUDITS (OR SURVEYS) & ENERGY MANAGEMENT PROGRAMS SECTION B

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1 ENERGY AUDITS (OR SURVEYS) & ENERGY MANAGEMENT PROGRAMS SECTION B GOALS OF THE ENERGY AUDIT Clearly identify types and costs of energy use Understand how energy is being used--and possibly wasted Identify and analyze more cost-effective ways of using energy - improved operational techniques - new equipment, new processes or new technology Perform an economic analysis on those alternatives and determine which are costeffective for your business or industry. Section B - 2 1

2 DETERMINING WHICH AUDIT TO CHOOSE Depends on the funding available for the audit, the cost and potential of the Energy Conservation Opportunity, and the required accuracy for the audit information. Depends on the type of facility, function of the facility, and processes within a facility. Section B - 3 BENCHMARKING AUDIT This audit includes performing a detailed preliminary analysis of energy use and accounting. Very cost effective when dealing with many facilities (i.e. where are the major opportunities for savings, depending on EUI or ECI as compared to other facilities) Section B - 4 2

3 TYPE I ENERGY AUDIT This audit includes performing a walk-thru inspection of the facility to identify maintenance, operational, or deficient equipment issues and to also identify areas which need further evaluation. Section B - 5 TYPE II ENERGY AUDIT This audit includes performing economic calculations and may include performing monitoring/metering/testing to identify actual energy consumption and losses. ASHRAE level II energy survey and analysis Section B - 6 3

4 TYPE III ENERGY AUDIT This audit includes the performance of computer modeling to determine the actual year round energy consumption. ASHRAE level III detailed analysis of Capital Intensive Modifications Section B - 7 INVESTMENT GRADE AUDIT This audit includes weighing risk into the economic calculations of a type II or III energy audit. This audit can be utilized to obtain funding for the projects identified. Section B - 8 4

5 THE MASTER AUDIT This energy audit also contains information such as code compliance, maintenance schedule development, equipment inventories, etc Section B - 9 Analysis of Bills The audit must begin with a detailed analysis of the energy e bills for the previous 12 to 36 months. This is important because: The bills show the proportionate use of each different energy source when compared to the total energy bill. An examination of where energy is used can point out previously unknown energy wastes. The total amount spent on energy puts an upper limit on the amount of money that can be saved. Section B

6 Example of Monthly Electric Consumption - kwh Monthly kwh 250, , , ,000 Kwh 50, Section B - 11 Monthly Electric Peak Demand - kw 400 Monthly KW Demand KW Section B

7 MONTHLY INDICATED LOAD FACTOR 100.0% Indicated LF 95.0% 90.0% 85.0% 80.0% 75.0% Indicated LF 70.0% 65.0% 60.0% Section B MONTH ROLLING SUMMARY 210, Month Rolling Summary kwh annual average 200,000 kwh Annual Average 190, , , , ,000 Section B

8 Additional Energy Bill Analysis A complete analysis of a facility s energy bills requires a detailed knowledge of the rate structures in effect for the facility. To determine accurate costs of operating individual pieces of equipment, separate energy bills into their components. E.g. demand charge and energy charges for the electric bill. This breakdown also allows more accurate savings calculations for Energy Management Opportunities (EMOs) such as high-efficiency equipment, rescheduling of some on-peak electrical uses, etc. Section B - 15 GEOGRAPHIC LOCATION/ DEGREE DAYS/WEATHER DATA Geographic location of facility and weather data for that location are important. Obtain average degree days for heating and cooling for that location for the past twelve months from: - local weather station, - local utility, or -state t energy office Degree-day data is very useful in analyzing energy needed to heat or cool facility. Section B

9 ENERGY MONITORING, TARGETING AND REPORTING MT&R is a powerful management technique for analyzing the historical energy performance of industrial, commercial, and institutional facilities setting energy reduction targets controlling current energy performance and, projecting future energy budgets. Targeting is the identification of levels of energy consumption towards which it is desirable, as a management objective, to work. Section B - 17 Steps in the On-site Energy Audit 1. Identify layout and operating schedule for facility. 2. Compile an equipment inventory. 3. Determine the pattern of building use to show annual needs for heating, cooling and lighting 4. Conduct a room-by-room lighting inventory - light fixtures - lamp types, sizes and numbers - levels of illumination - uses of task lighting Section B

10 Equipment List Get equipment list for facility and review it before conducting audit. Identify all large pieces of energy-consuming equipment such as: heaters, A/C units, water heaters, and specific process-related equipment. List all major energy consuming equipment, with annual hours of use and energy ratings or efficiencies. The equipment list and data on operational uses of equipment provide an understanding of major energy-consuming tasks or equipment at facility. Section B - 19 Ten Major Systems To Consider 1. Building Envelope 2. HVAC System people comfort 3. Electrical Supply System 4. Lighting 5. Boiler and Steam System 6. Hot Water System - domestic 7. Compressed Air System 8. Motors that I can see 9. Special Purpose Process Equipment 10. Water and sewer system Section B

11 Preliminary Identification of Energy Management Opportunities Identifying EMOs requires a good knowledge of energy efficiency technologies available to do the same job with less energy and cost. During the on-site audit, take notes on potential EMOs that are evident. General rule: Devote the greatest effort to analyzing and implementing the EMOs that show the greatest savings, and the least effort to those with the smallest savings potential. Section B - 21 The Energy Audit Report The energy audit report details the final results of the energy analyses and provides energy cost saving recommendations. The length and detail of this report will vary depending on the type of facility audited. A residential audit may result in a computer printout from the utility. An industrial audit should have a detailed explanation of the EMOs and benefit-cost analyses. More in the appendix!!! Section B

12 EMISSION FACTORS IN METRIC TONS Emissions by Fuel Type Ton CO 2 Ton SO 2 Ton NOx 1 ton No 6 Oil ton No 2 Oil m 3 of Natural Gas kwh of Electricity (assumes emissions are from a central utilityowned power station) ton of LPG Section B - 23 INITIATING AN ENERGY MANAGEMENT PROGRAM Designate an energy manager/energy management tteam. Energy managers must have support from top management to get cooperation from the maintenance and operating personnel. Management must provide support for: 1. Funding to implement the most cost-effective ti improvement 2. Collecting energy use and cost data Section B

13 DEALING WITH ENERGY COSTS IN OVERHEAD A difficult problem for an energy manager: Trying to reduce energy costs for a facility when these costs are accounted for as part of general overhead. Best solution to this problem: Top management should allocate energy costs down to "cost centers in the company or the facility. Managers then have a direct incentive to control energy costs to improve the overall costeffectiveness of the production center. Section B - 25 ALLOCATION OF ENERGY COSTS FOR MULTI-TENANT BUILDINGS Large buildings are often "master metered" to reduce utility fixed charges and reduce rates. Each tenant should receive a bill and pay for its own energy consumption. "Master metering" plus submetering can be an attractive approach. Utility grade submeters are readily available and cost effective. Section B

14 STARTING AN ENERGY MANAGEMENT PROGRAM 1. Develop the preliminary Energy Strategy 2. Get buy in from Top Management 3. Put the administrative i ti and management structure t in place. 4. Conduct Energy Cost and Use tracking 5. Conduct an energy audit. Use your facility people, utility services, or consultant or ESCO service 6. Identify, Analyze, and Prioritize opportunities 7. Implement energy projects, processes, and training 8. Monitor, Targeting, and Reporting, and REPORTING (yes we said it twice It s That Important!!!!!) More in the Appendix! Section B - 27 WHAT IS ISO 50001? (ISO INTERNATIONAL STANDARDS ORGANIZATION) A world class energy management standard that integrates with ISO 9001 and ISO It was adopted on June 15, 2011 There is now a world class energy management standard that we can recommend that organizations adopt. ISO is designed to help companies make better use of their energy-consuming assets, evaluate and prioritize the implementation of energy-efficient technology, and promote efficiency throughout the supply chain. B

15 Technical/Management Interaction Technical PLAN Baseline Track DO Projects Assessments Managerial PLAN Policy/Goals/Targetsy g Resources DO Training Documentation Communication CEM Training CHECK M & V ACT Procedures Process Control ANSI/MSE 2000 Module 2000:2008 Module CHECK Internal Audits ACT Management Review Corrective/Preventive Action Incentives 5 B - 29 SUPERIOR ENERGY PERFORMANCE ISO is a foundational tool that any organization can use to manage energy. Superior Energy Performance is an ANSI/ANABaccredited certification program that builds on ISO to provide industrial and commercial facilities with a pathway to continuously improve energy efficiency while boosting competitiveness. SEP is facility level conformance to ISO with validated d energy performance improvement. B

16 FOR MORE INFORMATION ISO Superior Energy Performance Energy Management Demonstrations / mentdemonstrations/ B - 31 APPENDIX FOR CONDUCTING AN E A ENERGY AUDIT Section B

17 EUI BENCHMARK FROM ARCH WEBSITE Section B - 33 ENERGY MONITORING, TARGETING AND REPORTING MT&R is a powerful management technique for analyzing the historical energy performance of industrial, commercial, and institutional facilities setting energy reduction targets controlling current energy performance and, projecting future energy budgets. Targeting is the identification of levels of energy consumption towards which it is desirable, as a management objective, to work. Section B

18 EXAMPLE USING DEGREE DAYS Table 1: Sample Energy Data for a School Month Heating Degree Days Total Electricity kwh Feb , Mar ,640 Apr ,440 May ,920 Jun ,840 Jul ,720 Aug ,080 Sep ,520 Oct , Nov ,400 Dec ,640 Jan ,240 Section B - 35 USE STRAIGHT LINE LINEAR REGRESSION Y = mx + b Y = kwh of electric use per month X = number of degree days per month m, b are slope and intercept from analysis How do you do this? Many calculators can do this Spreadsheet programs like Excel, Lotus, Statistical ti ti packages for PCs Section B

19 SCHOOL BUILDING Electricity (kwh) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, y = x R 2 = HDD (n/a) Section B - 37 DEGREE-DAYS Heating degree-days (HDD) and cooling degree-days (CDD) are separate values and are specific to a particular geographic location. The degree-day concept assumes: 1. The average building has a desired indoor temperature of 21.1 o C o C of this is supplied by internal heat sources such as lights, appliances, equipment, and people. 3. The base for computing degree-days is 18.3 o C. Section B

20 EXAMPLE Assume a period of three days when the outside temperature averaged 10 C each day The number of HDD for this three day period would be: HDD = ( ) 3 days = 25 degree C days. The units of degree days are: degrees C x days/year Section B - 39 ENERGY AUDIT REPORT FORMAT 1. Executive Summary Provides a brief summary of recommendations and cost savings. 2. Table of Contents 3. Introduction Describes the purpose of an energy audit. Emphasizes the need for a continuing energy cost control program. Section B

21 REPORT FORMAT (CONT.) 4. Facility Description Product or service, and materials flow. Size, construction facility layout, and hours of operation. Equipment list, with specifications. 5. Energy bill analysis Utility rate structures. Tables/graphs of energy consumptions. Discussion of energy costs and energy bills. Section B - 41 REPORT FORMAT (CONT.) 6. Energy Management Opportunities Listing of potential EMOs Cost and savings analysis 7. Energy Action Plan Recommended EMOs and an implementation schedule Designation of an energy monitor and ongoing program 8. Conclusion Additional comments not otherwise and determine which are cost-effective for your business or industry. Section B

22 ENERGY BALANCE FOR FACILITY Electricity 2,597,700 kwh Natural Gas 329,863 GJ Lighting 130,560 kwh Motors 1,516,619 kwh Facility Boiler 329,863 GJ Electric Heaters 100,100 kwh Compressors 116,379 kwh HVAC 34,286 kwh Chillers 274,560 kwh Miscellaneous 260,000 kwh Section B - 43 DEMAND BALANCE FOR A FACILITY Lighting 18 kw Electricity kw Facility Motors kw Air Compressors 14.9 kw Total: kw HVAC 17.1 kw Chillers 34.3 kw Miscellaneous 35 kw Electric Heaters 13 kw Section B

23 Section B - 45 COMPONENTS OF AN ENERGY MANAGEMENT PROGRAM Company Energy Strategy Energy Cost and Use Tracking, Profiling Energy Audits of Facility Analysis of O&M Energy Economics Analysis Implementing Energy Projects Monitoring i Energy Conservation Measures Company Training Section B

24 Company Energy Strategy Utility Cost Tracking Energy Economics Energy Audits Energy Projects Analysis of O&M Company Training Section B - 47 M&V COMPANY ENERGY STRATEGY Having the company s management commitment and support is vital to the success or failure of the strategy. Get the highest person available from management to give approval. Establish a set of guidelines that the company will endorse for improvements or investments in energy efficiency. Section B

25 Energy Policy has to be supported by upper management If not supported, it will not succeed National Account Energy Manager, January 1999 Section B - 49 QUICK CHECK FOR COMMITMENT Have the approving person perform some of the work or allocate some initial funds Have approving person sign an Energy Management Policy Section B

26 SAMPLE ENERGY MANAGEMENT POLICY Recognizing our responsibility of the XXXXX company, we believe that every effort should be made to conserve energy and natural resources. As a result, we are establishing this Energy Management Policy which shall be implemented within all of our facilities. We believe that this policy will be beneficial for our employees and customers in the prudent management of our financial and energy resources. The fulfillment of this policy shall be the joint responsibility of all employees. The success of this policy is dependent upon the cooperation at all levels of the organization. The Company will designate an Energy Manager to coordinate and implement the overall Energy Policy. The Energy Manager will also maintain accurate records of energy consumption and cost of energy on a monthly basis. Energy audits will be conducted annually at each campus and recommendations will be made for updating the energy program. Energy conservation guidelines and procedures will be reviewed and accepted or rejected by the designated energy management committee. In addition, the procedures required for implementation of the program and the results achieved from its administration will be published for employee information. Adopted this day of 2010 President, XXXXX Company Section B - 51 ENERGY STRATEGY GUIDELINES Make it simple and easy to understand Be there for explanations and questions Enforce the strategy Get everyone onboard Reporting and documenting - saving, results, problems, inputs Be assertive, not aggressive Section B

27 ESTABLISHING THE GUIDELINES Determine objectives for the energy management plan. Also designate: Training dollars Maintenance dollars Annual investment dollars Projected energy cost and usage reduction Dollars from energy savings for re-investment Section B - 53 SAMPLE ENERGY MANAGEMENT PLAN Years 1 and 2 Goal: conserve 10-15% of annual energy Action Items: Utilizing facility profiles and energy audits, determine when, where, and how energy is consumed Operate systems only when required Establish and follow a scheduled maintenance system Perform maintenance to bring systems to peak efficiency Invest in low-cost or no-cost modifications Cost to Implement: 25% of the expected annual savings Cost to Maintain: 10% of expected annual savings Section B

28 Years 3 through 5 Goal: conserve 10-40% of annual energy Action Items: Purchase energy efficient equipment Plan and perform energy conservation projects with paybacks within four years Research operations to ensure minimum energy usage Research how energy price fluctuations and availability will affect the facility Cost to Implement: % of the expected annual savings Cost to Maintain: 15-30% of expected annual savings Section B - 55 Years 6 -? Goal: conserve 35-50% of annual energy Action Items: Purchase energy efficient equipment Plan and perform energy conservation projects with paybacks with five years or longer Research energy usage that is not directly involved with the facility Research the opportunities for renewable energy sources within the facility Cost to Implement: % of the expected annual savings Cost to Maintain: 15-30% of expected annual savings This sample plan represents the experience of over 500 energy managers in business and industry Section B

29 SOME REASONS IT S ALL UPHILL UNTIL YOUR FIRST SUCCESSFUL ENERGY CONSERVATION MEASURE Recommendations may require training or additional personnel Capital cost may be difficult to budget Changes recommended may be difficult to convey to management Energy is not the primary concern in some departments May create resentment between departments Section B - 57 Section B

30 EFFECTIVE ENERGY MANAGEMENT ORGANIZATIONAL STRUCTURE President Vice President Vice President Vice President Energy Manager Inspectors/Auditors Section B - 59 ORGANIZATION GUIDELINES Information must flow freely through the organization Energy Manager must have input at all steps of production. (design, construction, operation and maintenance). Must be high enough in the organization to make this happen! Organization must operate has a Team Section B

31 END OF SECTION B Section B

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