Business Energy Efficiency. Webinar August 29, 2012



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Transcription:

Business Energy Efficiency Webinar August 29, 2012

Today s presenters and some notes... John Pirko LeClairRyan Greg Booth PowerServices, Inc. Roy Palk LeClairRyan Welcome. With the high number of attendees, please note all lines have been muted for the event. Q&A can be posted at the right of your screen, but any questions (time permitting) will be addressed at the end of the event. If using Q&A please send to both the host and the presenter. You can send direct questions (including request for copy of slides) to seminars@leclairryan.com with Business Energy in the subject for reply after the event.

Business Energy Efficiency Customer s View Roy M. Palk, Esq. August 29, 2012

Presentation Segments 1. Overview of Business Energy Use 2. Retail Billing Components 3. Usage Management Techniques 4. Renewable Energy Credits (RECs) 5. Energy Efficiency Standards 6. Net Metering 7. Monitoring and Verifying Results 8. Summary

Overview of Business Energy Use Manufacturing Industry Sector Examples (By NAICS Codes) Energy Intensive Manufacturing: Metals, Paper, Chemicals, Petroleum Non-Intensive Manufacturing: Electronics, components, appliances Balance of Manufacturing Sectors: Apparel, Printing, Wood products, Misc. Mfg.

Key Terms Related to C&I Energy Consumption Energy Intensity - the quantity of energy required per unit output or activity, so that using less energy to produce a product reduces the intensity Energy Efficiency - improves when a given level of service is provided with reduced amounts of energy inputs or services are enhanced for a given amount of energy input

Retail Billing Components 1. Demand total amount of power consumed within a given time frame, e.g. 15 minutes (related to capacity investment) 2. Energy KWH consumed 3. Facilities Charge May be related to dedicated facilities invested by the utility to serve a particular load

Retail Billing Components - Continued 4.Minimum Bill a monthly amount billed to the customer to cover the fixed costs of the utility such as when a location is not in production 5. Other Charges Taxes, Environmental Surcharges, Fuel Adjustment Charges, etc.

Usage Management Techniques 1. Practices depend on the type and schedule of production 2. Staging to control the demand (see time interval reference above) 3. Power Factor Correction (capacitors and PF corrected motors) 4. Waste heat recovery, self generation 5. Renegotiating Power Contracts to fit changed production schedules

Research Incentives 1. Federal and State Tax Incentives http://www.dsireusa.org/summarytables/finre. cfm 2. Renewable energy credits (create and sell of purchase to offset emissions) 3. Net Metering

Energy Efficiency Standards 1. Check state, federal and industry standards/requirements for new equipment installations ASHRAE 90.1 for commercial heating and air conditioning 2. The Energy Policy and Conservation Act (EPCA) established Federal energy conservation standards for commercial heating, air conditioning, and water heater equipment (in re to number 1 above)

Monitoring and Verifying Results 1. Performance Contracting split benefit approach 2. Identifying particularly large users of energy with in a facility and installing controls 3. Virtually real-time dashboard monitoring 4. Controlling energy demand against the utility s tariff, TOU demand and energy tariffs

Summary 1. Energy intensity is lessening while energy efficiency is increasing due to a slower economy and better equipment. (EIA) 2. A shift in new power generation, resulting in higher power costs, will place more emphasis on energy efficiency.

Thank You Questions?

LeClairRyan Webinar August 29, 2012 Energy Audits Presented By: Gregory L. Booth, PE President, PowerServices, Inc. 1616 Millbrook Rd., Suite 210, Raleigh, NC 27609 Toll-Free (866) 231-6610; Main (919) 256-5900; Fax (919) 256-5939

Cost Drivers In the Changing Utility Environment August 29, 2012 16

Industry Overview By 2030, the electric industry will need to make a total investment of approximately $1.5 trillion Includes generation, transmission and distribution by IOUs, coops and public power entities Investments will be made to: Replace aging plant Respond to environmental regulations Improve reliability Integrate renewable into the mix Meet new customer expectations August 29, 2012 17

Coal Plant Retirements Total Projected Coal Retirements: 41 GW Source: Energy Velocity, 2011 IRPs August 29, 2012 18

Industry Overview Transforming America's Power Industry: The Investment Challenge 2010-2030, the Brattle Group prepared for the Edison Foundation August 29, 2012 19

Industry Overview New, complex regulations in multiple areas: EPA Environmental regulations Mandatory reliability standards Financial regulations stemming from Dodd-Frank Renewable Mandates New era of integrated resource planning RTO requirements Legislative changes New regulations drive increased compliance requirements and increase costs??? $$ $ August 29, 2012 20

2015 Smart Meter Penetration (in % of users) Total US AMI Penetration: 8.7% 13 million meters (2010) 65 million meters (2015) Source: FERC 2010 Advanced Metering and Demand Response Survey, Institute for Energy Efficiency August 29, 2012 21

Industry Overview Electronic age has increased focus on interruptions and need for improved reliability Time of use Competing suppliers Green Power Supply Load driven solutions Pay as you go Cost focused in a time when rates are rising Energy Efficiency GE Nucleus Changing Customer needs and expectations August 29, 2012 22

Summary We are experiencing a rising cost environment driven by multiple pressures on a capital intensive industry Over the next 20 years, we will see growth in plant, that will be subject to risks in capital cost, financing cost, new regulations At the same time, customer expectations are changing, and new elements are being introduced on the load side which can create uncertainties August 29, 2012 23

Energy Audits August 29, 2012 24

Understand Your Regions Cost Drivers and Cost Structure CAISO $12 B Other WECC $35 B MISO/PJM West $77 B SPP $19 B NYISO $4 B PJM $18 B ISO-NE $11 B ERCOT $5 B Southeast $2 B Total Projected Transmission Investment through 2030: $240B - $320B (2011$) $12B - $16B per year Map shows only projects with minimum cost of $100M or greater. -Of $180 B shown here, about $70B are competing (overlapping) projects -Does not include annual baseline transmission for reliability Source: The Brattle Group, Energy Velocity August 29, 2012 25

Energy Audits Evaluate Each Component of Your Power Bill Facilities Charge Demand Charge Energy Charge Power Factor Penalty Other Cost August 29, 2012 26

Energy Audits Key Questions What portion of your power bill is the greatest? What is driving that cost? What options are available to control that cost? August 29, 2012 27

Energy Audits Discuss with Power Supplier: Mutually Beneficial Rates Power Control Option Cooperative Power Often Flexible Municipal Power Frequently Flexible IOU Power Marginally Flexible August 29, 2012 28

Energy Audits Understand Two Major Cost Components Demand - Example Industrial On-Peak Demand 1 st 2,000 kw $14.08/kW On-Peak Demand 1 st 5,000 kw $19.56/kW Large General Service (over 1,000 kw) Economy Demand (all year) $1.15/kW Off-Peak Excess Demand $1.00 August 29, 2012 29

Energy Audits Understand Two Major Cost Components (Continued) Energy - Example Small General Service 1 st 3,000 kwh 6.7395 /kwh Next 6,000 kwh 5.9635 /kwh Over 9,000 kwh 5.7356 /kwh Over 400 kwh per kw Demand 5.6081 /kwh August 29, 2012 30 Industrial Service All On-Peak Energy 5.7847 /kwh All Off-Peak Energy 3.4734 /kwh

Energy Audits Understand All Available Rates General Use Large Power Time of Use Interruptible Standby Many Others August 29, 2012 31

Energy Audits Understand All Available Rates (Cont.) August 29, 2012 32 For Example 1 Hour of Demand = $19.56 kw Versus 1 Hour of Energy = $0.057847/kWh Example of Demand Value In PJM Region 5 High Demand Theory 5 Highest Summer Peaks set Demand Cost 5 Hours Out of 8760 Hours Drives Cost

Energy Audits In a Perfect World Control 5 Hours and Lower Cost August 29, 2012 33

While Energy Conservation And Energy Audits Are a Common Theme Think Power Audit Demand & Energy Often Demand is Easier to Control and Yields Greater Economic Benefit August 29, 2012 34

Energy Audits The Basics Utility Bill Analysis Is Proper Rate Schedule Used Energy Use Index btu/sq. ft./year Energy Cost Index $/sq. ft./year Comparison Similar Facilities August 29, 2012 35

Energy Audits Level I Preliminary low or no cost energy services: $0.025/per square foot Level II Analyze inefficient equipment lighting, motors, HVAC: $0.05/per square foot Level III Professional Engineer analysis cost, savings, payback, life cycle costs, investment grade analysis: $0.10/per square foot August 29, 2012 36

Energy Audits The Next Level Demand Savings Beyond Energy Savings August 29, 2012 37 Doubles to Triples Net Benefit Over Energy Audit: $0.10/sq. ft.

Some Energy Saving Ideas August 29, 2012 38

Energy Audits Lighting Controllable Replaceable Energy Efficient LED Energy & Heat Reduction August 29, 2012 39

Energy Audits Motors, Belts & Drives August 29, 2012 40 Efficiency Rating Optimal Sizing Run Times Unnecessary Variable Speed Controls Optimize Pump and Fan Sizes Control Fan Flow Rate Large Exhaust Fans Used to Drive Wind Power Generators

Energy Audits August 29, 2012 41 Compressed Air Systems Leaks Size Optimization On-Off Control Multiple Units Sized to Demand Variable Speed Drive Use Waste Cooling Water for Other Hot Water Needs

Some Demand Saving Ideas August 29, 2012 42

Power Audit Shift Change - Move Shift Start to 1 Hour Later in the Winter and Off Utility Peak Thermal Storage TES Build Ice Off Peak and Discharge on Peak - Molding Processes ETS Heat Storage Off Peak and Discharge on Peak PURPA Qualified Waste Heat Use for Water Heating Standby Generation Dispatch Against the Peak August 29, 2012 43

Power Factor Correction Lower Power Factor Requires More kva per kw Used Power Factor Correction Benefits: Less kva Capacity Required $/kva Lower Line Losses $/kw and $/kwh Paybacks Often Less Than 1 Year kva kvar August 29, 2012 44 kw

Power Audit Capital Intense Projects LED Lighting Deployment Energy and Heat Savings Solar Power Deployment ($2.50-$3.00 per Watt NOW) Wind Power Deployment (Customer Use Exhaust Fan Discharge) August 29, 2012 45

Emerging Technology August 29, 2012 46

Emerging Technology Continual Improvement in Standards Based Wireless Technology Impact of Utility Smart Grids Site - Power Quality and Usage Measurement Energy Efficiency Improvements- Net Zero August 29, 2012 47

Emerging Technology Wireless technology standards are a work in progress Accepted as a proven technology Marketed on all levels of energy and device automation industries Main players: National Standards Committees- IEEE Alliances such as Zigbee, HomePlug, Wi-Fi Manufacturers August 29, 2012 48

Emerging Technology Zigbee Technology Standards Based Wireless Technology Interconnect Customers Loads for Control to Smart Grid August 29, 2012 49

Emerging Technology Alliance Customer IEEE Zigbee August 29, 2012 50

Emerging Technology Wireless Personal Area Network (WPAN) Wireless Local Area Network (WLAN) Wireless Metropolitan Access Network (WMAN) Wireless Wide Area Network (WWAN) August 29, 2012 51

Emerging Technology Interconnected Industry Vision Smart Devices - Base Technology is Generally Not New Improved communications between devices Standards allow different systems to now interact Site to Site Communication Speeds- World is Connected Internet and phone access Central data storage and reports August 29, 2012 52

Emerging Technology Residential/Commercial: Energy Efficiency, Security, Accessibility by Phone and Internet August 29, 2012 53

Emerging Technology Industrial Drivers - Flexibility, can use different device manufacturers, wireless vs. wired August 29, 2012 54

Emerging Technology Utilities- $46 Billion in Worldwide Smart Grid spending forecasted by 2015 Most project spending is in AMI systems AMI systems greatly improve energy and voltage data available to utilities Customer Power Usage Web Portals- show metered energy usage via Website. Improved management of TOU rates Leverage of Customer Site Generation- Site Microgrids beyond backup generation to Electric System Support due to renewable generation valleys August 29, 2012 55

Emerging Technology Site monitoring down to a single panel Power Quality Meters Voltage, Energy, Amps, Power Factor Waveform Capture Monitor Dips, Swells, Blinks Harmonics Panel Mount, Socket Mount, or Portable August 29, 2012 56

Emerging Technology August 29, 2012 57

Emerging Technology Customer and Utility Partnerships and Alliances Optimize Emerging Smart Grid Optimize Energy Consumption Optimize Demand and Demand Response Lower Utility Cost and Customer Cost August 29, 2012 58

Emerging Technology Response Lower Utility Cost and Customer Cost August 29, 2012 59

August 29, 2012 60 Questions?

Contact Information John Pirko john.pirko@leclairryan.com Greg Booth GBooth@powerservices.com Roy Palk roy.palk@leclairryan.com

Disclaimer This presentation provides general information and is not legal advice and should not be used or taken as legal advice for specific situations. You should consult legal counsel before taking any action or making any decisions concerning the matters in this presentation. This communication does not create an attorney-client relationship between LeClairRyan, A Professional Corporation, and the recipient. Copyright 2012 LeClairRyan, A Professional Corporation. All rights reserved.