Superior Energy Performance: A Roadmap for Achieving Continual Energy Performance Improvement

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1 Superior Energy Performance: A Roadmap for Achieving Continual Energy Performance Improvement Paul Scheihing US Department of Energy Realising the potential making Energy Management Systems deliver Sustainable Energy Ireland conference, Dublin, Ireland, November 2009

2 Superior Energy Performance A U.S. industry initiative that provides industrial facilities with a road map for achieving continual improvement in energy efficiency while boosting competitiveness. Superior Energy Performance goals: Encourage broad participation through tiered approach Use ISO standard as foundational energy management system Drive continual performance improvement in energy intensity 2

3 Superior Energy Performance Strategy Foster an organizational culture of continuous improvement in energy efficiency in U.S. manufacturing facilities Develop a transparent system to validate energy intensity improvements and management practices (conformance with ISO 50001) Create a verified record of energy efficiency/intensity improvement. Could potentially offer value for energy savings and carbon reductions in utility, state, regional, national and international trading markets. 3

4 U.S. Council for Energy-Efficient Manufacturing Champion of U.S. industry in implementing and achieving national energy efficiency policy goals. Seeks to improve the energy intensity of U.S. manufacturing through a series of initiatives. Guides development of the Superior Energy Performance 4

5 Roles within Superior Energy Performance Industry Drive strategy through U.S. Council for Energy Efficient Manufacturing Assist in program design through initial pilot plants Adopt the SEP program by getting plants certified to ANSIaccredited SEP program Government Facilitate industry collaboration to develop SEP program: fund program development activities, e.g., standards development, pilot projects Cost-share SEP program start-up Leverage SEP program to deploy Federal energy programs, e.g., Save Energy Now LEADER 5

6 Getting Superior Energy Performance Certified Certified by ANSI-accredited Certifying Body in two areas: 1. Energy Management System Conformance - ANSI MSE 2008 standard and eventually ISO standard, which will demonstrate that the plant or company has : Sustainable energy management systems in place Completed a baseline of energy use Commitment to continuous improvement of their energy performance 2. Validated Energy Performance Improvement Third party measurement & verification to meet minimum SEP energy intensity performance improvement requirements 6

7 Benefits of ANSI-accredited SEP Certification to Manufacturing Plants Establishes systematic framework to achieve continuous improvement MSE 2008 and ISO energy management and ASME system assessment standards Tools and resources to assist implementation and validation of energy performance improvement Certified plants receive recognition from: Public recognized leader in sustainable use of energy resources (local and financial community) Supply chain customer gives preferred supplier status External financial incentives Energy efficiency credits (electric utility & others) Could enable potential carbon credits state, region and national 7

8 DOE s Industrial Technologies Program Industrial Sector National Initiative Goal: Drive a 25% reduction in industrial energy intensity over the next 10 years

9 Voluntary Commitments by Industrial LEADER Companies Voluntarily pledge to reduce energy intensity by 25% or more over 10 years Make continuous improvements in energy efficiency and carbon reduction as part of robust business strategy Gain enhanced access to enabling resources: tailored technical assistance, training, assessments, and more Receive high-level recognition for participation and achievements Reduced energy costs and carbon emissions

10 Save Energy Now LEADERs and Superior Energy Performance Create a Cycle of Energy Performance Improvement Corporation, Business Unit or Supply Chain Leader Continuous Energy Intensity Reductions Energy management planning Tools, training, and emerging technologies Energy assessments Enhanced technical assistance Access to ITP RD&D Utilities and States Incentives Certified Practitioners Superior Energy Performance Program SEP-Certified Partner Plants ISO energy management standard Energy intensity baseline and improvement measurement & verification System assessment standards Independently verified program implementation and energy intensity improvement 10

11 Moving Forward 11

12 Superior Energy Performance Program Design 3-Tiered program accommodates: Maturity of plant s energy management program Level of verification desired Business cycle/climate PARTNER Self-declaration Registered Partner Third party remote verification Certified Partner ANSI-accredited certification SILVER GOLD PLATINUM Performance Levels based on: Validated energy intensity improvements SEP Best Practices Scorecard 12

13 Superior Energy Performance Program Design PARTNER Criteria Conformance with energy management standard Measure and audit energy performance improvement Performance Levels Energy intensity improvement required Method of Verifying Results Self Declaration REGISTERED PARTNER Criteria Conformance with energy management standard Measure and verify energy performance improvement Performance Levels Energy intensity improvement required, minimum requirements set by program Two Pathways Available: Energy Intensity or Mature Energy Method of Verifying Results Third Party verification via remote review CERTIFIED PARTNER Criteria Conformance with energy management standard Measure, verify, and certify energy performance improvement Performance Levels Energy intensity improvement required, minimum requirements set by program Two Pathways Available: Energy Intensity or Mature Energy Method of Verifying Results ANSI-accredited certification with onsite visit *This tier includes candidate plants that set (but have not yet met) energy intensity improvement targets. SILVER GOLD PLATINUM Performance Levels based on: Validated energy intensity improvements over 3 years Implemented Best Energy Management Practices via Scorecard 13

14 Pathways for Achieving Performance Levels Superior Energy Performance provides two pathways to achieve the silver, gold, or platinum designation: Energy Intensity Pathway: Requires demonstration of energy intensity improvement over the last 3 years. Most plants will enter the program through this pathway. Mature Energy Pathway: Requires demonstration of energy intensity improvement over the last 10 years. Takes into account both a plant s energy management system and continued efforts to reduce energy intensity, as measured by the SEP Best Practices Scorecard. This pathway is designed for facilities that have mature energy management systems in place and have implemented energy efficiency improvements over the last decade. 14

15 Performance Levels for Registered and Certified Partners Performance Characteristics Silver Gold Platinum EI Pathway Energy Intensity Improvement Meets 5% energy intensity improvement threshold over the last 3 years. Meets 10% energy intensity improvement threshold over the last 3 years. Meets 15% energy intensity improvement threshold over the last 3 years. Mature Energy Pathway Energy Intensity Improvement Score on Best Practices Scorecard Includes credits for energy management best practices and energy performance beyond the 15% EI improvement over the last 10 years. Demonstrates an energy intensity improvement of 15% or more over the last 10 years. Meets a score of at least 35 and up to 60 out of 100 total points for Best Practices Scorecard Minimum of 25 points required for the energy management best practices. Demonstrates an energy intensity improvement of 15% or more over the last 10 years. Meets a score of at least 61 and up to 80 out of 100 total points for Best Practices Scorecard Minimum of 25 points required for the energy management best practices and 10 for energy performance. Demonstrates an energy intensity improvement of 15% or more over the last 10 years. Meets a score of at least 81 out of 100 total points for Best Practices Scorecard Minimum of 25 points required for the energy management best practices and 10 for energy performance. Partner Plants that self-declare results are not eligible for silver, gold, or platinum designation 15

16 Scorecard Point System Scoring is based on a 100 point scale: 60 points in energy management system best practices 40 points in energy performance, along with 35 additional points from innovation credits that can be applied to energy performance* Each credit is given at least one point; some are given more based on difficulty of achieving the credit. Qualifying for Performance Levels Silver Gold Platinum Mature Energy Pathway Scorecard Points Minimum management system points Minimum energy performance points Min: 35 Max: 60 Min: 61 Max: 80 Min: 81 Max: * 75 points are available for energy performance, but only a maximum of 40 can be earned 16

17 Superior Energy Performance Best Practices Scorecard Plants in the Mature Energy Pathway earn Best Practices Scorecard points to qualify for silver, gold, or platinum designation. Provides some approaches that can be implemented to earn the credits. A tool will be available to help users apply the scorecard. Credits are awarded in seven major categories: Energy Management Credits:* 1. Energy data, monitoring, and measurement 2. Management of significant energy uses 3. Energy supply management 4. Management of energy projects 5. System sustainability Energy Performance Credits: 6. Energy intensity reduction 7. Innovation in energy performance *Activities, processes, or procedures that exceed the requirements of American National Standard, ANSI/MSE

18 Superior Energy Performance Best Practices Scorecard Energy Management Credits: Activities, processes, or procedures that exceed the requirements of American National Standard, ANSI/MSE Information in scorecard includes: Available points for the credit Intent of the credit Requirement Potential technologies and strategies Measurement and Verification Timeframe covers past three years prior to application Scorecard SAMPLE: Management of Energy Projects (EP) Regular assessment of significant uses Energy system assessment standards Certified energy system professional Continual improvement tools Energy project prioritization Quick payback opportunities Life cycle costing Root cause analysis Implementation of high payback projects Utilize alternative financing 17 Possible Points 1 Point 1 Point 2 Points 1 Point 1 Point 1 Point 1 Point 1 Point 2 Points 1 Point Financial decision criteria Water Conservation Establish a separate pool of capital funding 1 Point 1-2 Points 2 Points 18

19 Superior Energy Performance Best Practices Scorecard Energy Performance Credits: First performance credit is for reductions above the minimum requirement of 15% reduction over past ten years Timeframe covers past ten years prior to application % (min) Points Energy Intensity Reduction (10-year average) % (min) Points % (min) Points % (min) Points 15% 0 16% 2 17% 4 18% 6 19% 8 20% 10 21% 12 22% 14 23% 16 24% 18 25% 20 26% 22 27% 24 28% 26 29% 28 30% 30 31% 32 32% 34 33% 36 34% 38 35% 40 19

20 SEP Planned Infrastructure Standards & Protocols Energy Management Standard System Assessment Standards Measurement & Verification Protocol SEP Program Administrator ANSI-accredited Certifying Bodies (TBD) Certifying Orgs. For Professionals (TBD) Energy Management Practitioners System Assessment Practitioners Certified SEP Program Validation Specialists Practitioner Training Orgs. (TBD) Participating SEP program Manufacturing Plants 20

21 Major Milestones: Nov. 2009: M&V protocol ready for pilot plant application Dec. 2009: Request applications from initial Texas plants Winter 2010: Hold state-regional SEP demo plant workshop to coordinate demo plant program Jan. 2010: First plant applies to SEP program Feb. 2010: Complete first plant on-site audit and review of conformance to SEP program requirements June 2010: Select SEP Program Administrator by conducting DOE solicitation July 2010: First five plants certified through ANSI-accredited Certifying Body Aug. 2010: Establish accredited professional certification organizations for Certified Practitioner in energy management and SEP validation specialists Oct. 2010: Identify accredited professional certification organizations for Certified Practitioner in four system areas Jan. 2011: Begin training Certified Practitioners in energy management and SEP validation specialists through ANSIaccredited professional certifiers May 2011: Begin training Certified Practitioners in four system areas through ANSI-accredited professional certifiers Apr. 2011: ISO Energy Management Standard published; replaces ANSI standard June 2011: National launch of Superior Energy Performance Program June 2013: SEP program self-sustaining on program fees 21

22 For more information: Superior Energy Performance website DOE Industrial Technologies program website