Schneider Thenewworldofenergy

The New World of Energy: Rising Costs, Carbon Footprints & Being Green Carl Castellow, PE Industrial Energy Efficiency Manager Schneider Electric

Introduction As our modern world grows and the energy landscape changes, the only way to stay competitive is to form clear plans to manage energy and increase efficiency.

Schneider Electric - Energy Management Seminar- 5.7.09

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W orld O ilPrices (Dollars per Barrel)

Major Events and Real $160 $140

World Oil Prices Prices Spike on Iraq War, Rapid Demand Increases, Constrained OPEC Capacity, Low Inventories, etc.

$120 $100

Iran – Iraq War Begins

$80 Saudi’s Abandon “Swing Producer” Role

$60 $40

Iranian Revolution

$20 $0

1973 Arab Embargo

1970

Schneider Electric - Energy Management Seminar- 5.7.09

Iraq Invades Kuwait

Prices Rise on OPEC Cutbacks; Increased Demand

Gulf War Ends

9/11

Asian Economic Crisis

US Oil Prices (Dollars per Barrel)

Today

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The Challenges of Energy Efficiency - Business often requires short term decisions. - In Industry, energy represents a small part of total manufacturing costs (2% to 8%). - Steam traps don’t make for good marketing material.

OR

Schneider Electric - Energy Management Seminar- 5.7.09

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Past Programs in Industrial Energy Efficiency 1. Supply Side Creativity:

• •

Creative Business Models; i.e. Chauffage Risky, Non-Correlated Hedging

2. Performance Contracting = Unsuccessful in Industrial Sector!

•

Guaranteed Savings Contracts – Very successful in commercial sector; generally a failure in industrial 3. Most Demand Control Systems Died a Natural Death in the 1980’s.

4. Energy Audits…

Schneider Electric - Energy Management Seminar- 5.7.09

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Google: “Energy Audit” Advanta Energy Corp. provides enegy and environmental consulting services to commercial and industrial business across America. AdvantaEnergy.com Save This - Share This - Rate This Sponsored Links

GE OFFER FREE LIGHTING ENERGY AUDITS

GE Consumer and Industrial

Delta Energy, LLC

09/04/2008

Industrial Energy Management Natural Gas and Electric Services deltaenergyllc.com Consultant Energy

Professional Energy and Process Improvement Consulting & Management www.Domani.com consulting www.TheLadders.com Web Listings energy consultants, conserving energy, reducing costs, energy ... Engineering consulting firm, helping commercial and industrial customers montior and manage utility consumption, costs, power quality,and conservation ... http://www.energyconsultants.org/ Sieben Energy Associates Technical and strategic energy consulting services. We help our clients generate significant savings on their energy costs: 15-35% on average. http://www.siebenergy.com/ CEC Energy Consultants CEC Energy Consultants is an engineering project management firm that allows you to outsource operations, engineering, and business development projects ... http://www.cecenergyconsultants.com/ Energy Consultants, Inc. Licensed aggregator for retail sale of electricity. Services and contact information. http://www.energysavings.com/ Open Directory - Business: Energy: Consulting Abraxas Energy Consulting - Energy consulting and management services, software training, utility bill tracking, energy audits, and custom energy software ... http://www.dmoz.org/Business/Energy/Consulting/ Research & consulting: oil, gas, coal & refining | Wood Mackenzie Research & consulting services for the global energy, oil, gas, coal, refining, power, & electricity industries - Wood Mackenzie trusted consultants and ... http://www.woodmacresearch.com/ Welcome to CABEC - California Association of Energy Consultants The California Association of Building Energy Consultants or CABEC fosters professional development and ethics in energy compliance through education ... http://www.cabec.org/ Schneider Electric - Energy Management Seminar- 5.7.09

GE Consumer and Industrial is offering free lighting energy audits in an attempt to get businesses and public sector organisations thinking about their energy usage.

Energy Audits Energy Efficiency Tax Incentives Energy Education Additional APPA Resources Green Building Programs Useful Links Main DSM/Energy Efficiency Page Alabama City of Florence, Energy Right Program Residential - Incentives for Heat Pump Retrofit, energy efficient new homes, and new electric water heaters. Huntsville Utilities Residential - Free Energy Right Home eValuation®,

Engineers provide free energy reduction inspections ANN ARBOR— Attention all plant managers and owners of small to mid-sized manufacturing firms in Michigan and northern Ohio: Are you interested in lower utility bills, less waste and higher profits? Want to learn how to improve your plant's energy efficiency and productivity without paying high-priced consulting fees?

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What is an Energy Audit ? 1. A Static Snapshot in a Dynamic Environment 2. A Product with Wildly Varying Prices and Quality 3. Most Audit Reports End Up on a Shelf with Very Little Implementation and Limited Results 4. Traditional Energy Audits Often Remain on the Shelf

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An EAP is much more than an energy audit

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Energy Action Plan Think: Long-Term Evaluate both supply side and demand side areas of operation, as well as their interactions.

Consider many options with various fuel cost scenarios.

Take into account the “Other Factors” like potential carbon credits.

Schneider Electric - Energy Management Seminar- 5.7.09

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Supply Negotiations Suppose a Baking Operation Needs a New Oven

• • •

Natural Gas at $14/DT produces steam at $16.50 per Million Btu delivered Electricity at 6 cents per kWh delivers electric heating at $17.50 per Million Btu The Electrical option has easier permitting issues

Scenario 1: Natural Gas decreases to $10 per DT following a stabilization in the Oil Price Markets Scenario 2: Electricity Increases to 10 cents per kWh as fuel adjustments continue

Schneider Electric - Energy Management Seminar- 5.7.09

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Supply Negotiations

Wellhead Production

Generalized Schematic Physical Flow of Natural Gas in U.S. Consumers Gas Processing Plant

Residential Local Distrib. Company

Commercial Industrial

Pipeline Elect. Util. Underground Storage

Imports

Bypass End User

Schneider Electric - Energy Management Seminar- 5.7.09

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CHP Economics and Real Time Pricing 10MW Gas Turbine CHP System

Savings from Optimized RTP Operation

Process

$300

$300

$200

$200

$100

$100

$0

Hourly Saved

$400

$0 11 00 13 00 15 00 17 00 19 00 21 00 23 00

Emission Control Equipment

$400

90 0

Gas Turbine Exhaust

$500

70 0

Fuel

$500

50 0

Air

Exhaust Gas

$600

30 0

Combustion Chamber

Electric Power

Generator

$600

10 0

Gas Turbine

Compressor

Electric Power

Generator

Cost per MWH

Steam Turbine

June 10, 2008 Real-Time At $14.06/MMBtu Save $4,406 during the day for 1.3 MW New Generation $700 $700

Time of Day

Total $ Saved

Air Fuel

ICI Boiler Or HRSG

Schneider Electric - Energy Management Seminar- 5.7.09

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Energy Action Plan Results ● Summary Recommendations from First Year Energy Action Plan • Recommendations to keep cogen are now saving the site $1.5 million to $3 million per year. • Site is using Energy Action Plan as reference “roadmap” for new projects

Schneider Electric - Energy Management Seminar- 5.7.09

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What is “Carbon Neutral” ● Carbon Neutral Means No Net Increase in Emissions of the Six Greenhouse Gases • Voluntary Programs Such as Climate Leaders (EPA), Energy Star (DOE and EPA) • Reducing Existing Emissions Through Energy Efficiency improvements • Replacing Existing Carbon Based Fuel Sources with Renewables • Offsetting Through Emission Trading

●Voluntary Exchanges such as Chicago Climate Exchange

Schneider Electric - Energy Management Seminar- 5.7.09

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Energy Action Plan Overview: ● Formulate a Strategic Plan • • •

Include Low Cost and Project Options Energy occupies a “Seat at the Table” Goal is Implementation

● Comprehensive integration of all 3 areas affecting Energy Efficiency:

• • •

Procurement (Electricity and Gas) Demand Management Optimization of Process and Plant Utilities

● Dynamic Execution • • •

Schneider Electric - Energy Management Seminar- 5.7.09

Analyze/Plan/Execute Projects Must Be “Price Flexible” Ongoing Process

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Case Studies

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An Energy Action Plan for a Large Manufacturing Facility: Facility Type: Pulp/Paperboard Total Savings (Year 1): $1,215,200 Project Description: An energy action plan included an energy dashboard, boiler O2 trim controls, a switch from 150 to 30 psig steam sparging, powerhouse piping, compressed air system optimization, variable frequency drives and lighting retrofits.

Schneider Electric - Energy Management Seminar- 5.7.09

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An Energy Action Plan for a Large Industrial Site: Facility Type: Packaged Food Total Savings (Year 1): $460,200 Project Description: An energy action plan included demand control strategies to profit from utility deregulation, blowdown economizers, pressurized flash tanks, water treatment, HVAC setback, methane energy recovery, glycol piping and compressed air sequencing.

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Take the next step in energy efficiency with the most trusted name in the power industry for over 100 years.

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