a permanent energy cost control program. energy cost control is a process, not a project! what is an...
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•A PERMANENT energy cost control program.
•Energy cost control is a PROCESS, not a Project!
What is an Energy Action Plan?
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Cost control involves ALL of the following:– Procurement
– Optimizing performance
– Behavior and procedural change
– Utilizing technology and informational resources
What is an Energy Action Plan?
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Conservation is the reduction of usage.
Management is the judicious and effective use of utilities to maximize profits (minimize costs) and enhance competitive positions.
Energy Management vs Energy Conservation
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EM is strikingly similar to FINANCIAL management:
• Identify goals;• Select the investments needed to reach the goals;• Establish a blueprint & strategy for goal attainment;• Start early, if only with small efforts; • Maintain regular contributions over time;• Keep track of earnings; and • Defeat risk through reinvestment and diversification of
earnings.
Energy and Financial Management
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Initial Effort (First two years)
• 5-15% cost savings
• Little or no capital expenditure
Long-Term Effort
• 25% or higher cost savings
• Requires management commitment
• A never ending process
Energy Management Benefits
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• Focus on COST not USAGE• Pareto Principle
– 20% of loads account for 80% of costs– Identify these 20% loads
• Control and meter these loads• Develop a “Cost Center” mentality
– Don’t treat utilities as overhead
Focusing Energy Management
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•Designate an Energy Management Coordinator•Establish the Energy Management Team•Evaluate cost saving opportunities•Prioritize implementation•Implement•Evaluate success (e.g. benchmarking) and promote
Starting Your Energy Action Plan
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• A single person
• Dynamic
• Goal oriented
• Good manager
• Wears other hats
Energy Management Coordinator
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• Architect of the “Energy Action Plan”
• Provide effective energy reporting and analysis (energy accounting)
• Secure management commitment
• Establish “cost center” mentality
• Establish energy cost/usage standards
• Provide EM training
• Set EM objectives (defined goals)
GOALS OF THE EMC
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• Reduce electric cost per unit of production by 10% the first year and 5% in the second
• Within 2 years all tenants will be separately metered
• Facility will have a contingency plan for gas curtailment by end of first year
• All boilers will be examined for waste heat recovery potential the first year
EXAMPLE ENERGY MANGEMENT GOALS
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Energy Management Coordinator
Technical Support
Steering Group
ENERGY MANAGEMENT TEAM
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• Several people
• Part-time duty
• Strong technical background
• Able to provide technical support and update knowledge on new technologies
• May include consultants and vendors
TECHNICAL SUPPORT
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• Several people
• Part-time duty
• Guides activities
• Aids in communication
• From various departments– Personnel department
– Production workers
STEERING GROUP