How to Develop An Energy Master Plan in A Changing Energy Environment

Transcription

1 How to Develop An Energy Master Plan in A Changing g Energy Environment BOMA Energy Action Day Catherine Luthin Luthin Associates, Inc.

2 What is an Energy Master Plan? the Energy Master Plan today represents a comprehensive plan for managing g energy for the entire corporation. The Energy Master Plan end document contains the entire history of energy for the entity and the future energy plans. As such it covers every area that uses energy, purchases energy, corporate energy management and corporate energy finances. The Energy Master Plan of today is a more comprehensive and inclusive process than employed in the past. All levels of the organization are included in the development of the plan with a strong buy-in by upper management. In addition, a mechanism is included for continually updating the plan to changing circumstances so that the plan will be a living document. The Ten Step Program to Successful Utility Deregulation For Building Owners and Managers by George R Owens PE CEM Energy and Engineering Solutions, Inc. 2

3 Characteristics of A Successful Plan It must have buy-in from upper management, facility staff and employees. It is not an energy audit but a part of the business plan. It must include both the supply and demand side requirements. It should be a record of the past and a blueprint for the future. 3

4 Set Goals Satisfy new NYC energy conservation code Reduce greenhouse gas and other emissions Simplify maintenance procedures Improve processes and operations Improve air quality Recognition - Achieve LEED or EPA s Energy Star certification and press releases Get your employees motivated 4

5 Sample Goals and Objectives for A Major Office Building Bench Marking NYC Energy Code Compliance for benchmarking, auditing, lighting, retro commissioning and metering Greenhouse gas emissions for landlord, tenants and Corporate perspectives Best Practices Case studies Review water and electric bill for each tenant Update tenant bathrooms Create Governing Board Create a five year plan for a quazi-board to share with new management and ownership over the term of their lease Create sub-committees to focus on upcoming events and share information with their corporate offices Communication Media Create link for Web Portal Create new letter to tenants Create Web Blog to share comments 5

6 Energy Master Plan Strategy Benchmark the facility Identify your energy and carbon baseline Determine your growth plans Identify energy growth restraints such as load availability Examine reliability Identify the weak energy performance areas related to process, operations & maintenance 6

7 Developing A Scope of Work Traditional versus Sustainable Benchmark energy, greenhouse gas usage, fuel oil Review current energy procurement and develop strategy to reduce costs Energy reliability Identify demand response opportunities Identify funding opportunities for the study and for energy projects Conduct ASHRAE Level 2 Energy Audit of energy and water 7

8 Developing A Scope of Work Traditional operations analysis focused on BMS programming - new approaches look at basic maintenance and operations that can have high payback with little effort Assess CHP potential Assess renewable energy projects Assess LEED potential Identify metering opportunities Identify sustainable best practices for high density areas such as data centers 8

9 Developing the Internal Team Internal Team Management Champion Facility and Engineering Departments Student and Faculty Participation Identify the Energy Geeks Keep it Practical Develop a communications plan 9

10 Developing the Support Team External / Support Team Identify the Lead Consultant or Owners Rep. Consider multiple engineering firms Engineering firms understand demand side issues. They know how to identify and quantify energy conservation projects. Financial Energy Management firms understand the supply side issues and the financial impact of the savings equation. The combination of these companies can bring a holistic approach to managing the project. Using multiple firms provides both demand and supply side perspective and encourages holistic solutions. 10

11 Create Your Energy Inventory Collect utility data for three years - if possible. Include fossil fuels & water Get copies of all energy supply contracts Review opportunities for fuel switching Identify Major Energy Systems including Number, Type, Size Find your maintenance agreements Update your maintenance logs Review capital plans Develop a budget for implementation Identify funding sources outside of capital funds 11

12 Benchmarking Use Portfolio Manager to ensure compliance with local laws. Benchmarking must be completed by May 1, Benchmark as far back as possible to capture energy reductions already implemented. This will enable documenting energy savings from projects that were already implemented. 12

13 Energy Purchases Understand your fuel mix for both heating and cooling Consider an analysis that t quantifies the benefits of conversions, firm vs. interruptible gas or self-generation of steam. Look at load availability of energy infrastructure, if your electric service is maxed out, the ROI of a gas absorber or steam may look better. Review existing supply contracts and develop a risk strategy a consultant may be required. Consider purchasing RECs Consider all of the above aspects when quantifying the ROI of an ECM. 13

14 Energy Measures Retain an energy engineering firm to provide an ASHRAE Level 2 Audit to meet energy code compliance. Utilize a qualified retrocommissioning agent to review operations and maintenance practices. This is the best opportunity for low cost energy savings opportunities. Ensure energy code compliance. Bring in several demand response companies to review opportunities for load curtailment. t Identify opportunities for small co-generation sized to thermal loads or large plants that can sell steam to Con Edison. Renewable projects like wind and solar can provide positive recognition but have long paybacks. 14

15 Financial Considerations Ensure that the Master Plan is in step with your capital plans. Utilize renovation or construction plans to incorporate energy and carbon-friendly projects. Develop a methodology for prioritizing projects. Purchasing green power may enable you to realize LEED points. Understand long term energy infrastructure issues, i.e. will there be load growth from development and will it tax utility systems? Do not limit goals to short term ROI thresholds. Look at life cycle costs and consider where energy pricing will be in the next 15 years. Utilize NYSERDA s Flex Tech program to fund 50% of the study costs or consider similar Con Edison programs. 15

16 Identifying the True Cost of Energy The savings from energy projects are often based on historical billing records. A simple payback analysis using outdated pricing will have misleading information. Over the past year, on average, electric supply prices have declined 20% while utility delivery rates have increased by approximately 13%. Using forward pricing curves to quantify the cost of energy will enable informed decision making. 16

17 Lessons Learned Get a wide variety of internal support and ensure frequent communications with internal and external customers. Develop a scope of work that reflects all of your needs. The scope of work should balance sustainability goals with practical demand and supply side opportunities. Consider multiple l consultants based on expertise and focus rather than one firm that does it all. Ensure that forward looking energy prices are used to quantify savings. 17

18 Lessons Learned The Level 2 Audit is not investment grade. The cost of implementation and savings estimates for the more complicated systems will still need further verification. Focus on the simple (O&M, Demand Response) as well as the exotic (BAS, Co-gen, Renewable) Always use a competitive bid process. The winning companies must commit to the project team. Make sure the guys who sell the project implement it. The study will take longer than you expected. Explore public funding for the study and ensure such funding is included in the analysis of ECMs. 18

19 Questions? Contact Us At Catherine Luthin Luthin Associates 15 Walling Place Avon-by-the-Sea, NJ