2A World of SolutionsTM
Introduction to Strategic Energy Management
Program Overview
One-2-Five® Software
Program Results
Customer Examples
Next Steps
Questions
Agenda
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What is Strategic Energy Management?
Traditional Approach One-2-Five® Approachvs.
• Tactical, project basis• No context of ongoing management
system• No long-term sustainability• Authorities not commensurate with
level of responsibility or accountability
• Strategic, program basis• Integrated into business processes• Continuous improvement
framework• Addresses business structure,
processes, people, and systems• Longer term energy and cost savings
Customer Lead
Complete Customer Agreement and Collect Background Info
Facilitate Assessment
Develop Action Plan
Follow Up on Action Items with Responsible Parties
Program Overview & Sales Presentation
Present and Deliver Report to Customer
Before One-2-Five® Assessment
Day of Assessment
2-4 Weeks After Assessment
4-5 Weeks After Assessment
Submit Draft Report and Presentation to Duke
6-12 Months After Assessment
Review Progress on Action Plan and Reassess Customer Facility
35%
16%30%
16% 3%
Boiler, Heater, Fired Systems, Cooling Systems
Sensors, Controls, Automation
Waste Heat & Energy Recovery
Source Flexibility & Combined Heat and Power
EM Business PracticesProcess-RelatedEnergy Savings Opportunities(Dollar Basis)
NAM, Efficiency & Innovation in US Mfg Energy Use, Dec 2005, Pg 16Source: US DOE Industrial Tech Program, Energy Use, Loss & Opportunity Analysis, Dec 2004
Low-Cost Opportunities Behavioral & Procedural
• Policy Position• Targets & KPIs• Planning Protocol• Awareness & Training• Accountabilities• Operating Procedures• Maintenance Procedures• Data Capture & Reporting• Auditing Protocol
One-2-FiveFocus
Why Strategic Energy Management?
SEMP Program Process
Customer Registration • Customer
Agreement• Participation
fee• Logistics for
Diagnostic Session
Diagnostic Session• Executive and
functional team facilitated diagnostic
• Assessment of 10 key energy management sectors
• 2-3 hours
Strategic Action Plan• Incorporates
assessment results
• Competitive benchmark report
• Tactical action items
Measurement & Continuous Improvement• Track
performance on action items
• Reassess in 6-12 months
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SEMP Program Key Features
Structured dynamic workshop with executive management and cross functional team
Engages decision makers and builds consensus on current needs
Identifies strengths & weaknesses in 10 key business management areas in relation to integration of energy management systems
Focuses on measures that can bring high returns with modest investments
Provides customer with a path to continuous improvement
Identifies best practices in energy management Includes global benchmarking against 3,000+ organizations Coordination with certifications such as ISO, LEED®, and ENERGY STAR® Leads to other applicable Duke Energy service offerings
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SEMP Program Results
Majority of participants will fall into the 1-2 star range.
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Program Results
Identifies strengths
Identifies weaknesses
Highlights priority
customer needs
Customer-specific Strategic Action Plan that includes critical actions identified through the diagnostic session and project implementation timelines with responsibilities and timeframes
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Demonstrate corporate commitment through policy creation and goal setting Establish energy consumption reports, reporting structure/process, meeting times, and
goal tracking for operations/product lines Conduct energy audit Develop and maintain list of energy improvement projects and review opportunities on
a regular basis Conduct energy awareness trainings for staff and review ways staff can impact and
improve energy usage Recruit/train staff that are suitably skilled for energy management activities Review and modify equipment shutdown procedures Assign responsible parties for energy management of facility/operations line and
establish incentive program for meeting reduction goals Develop guidelines for equipment selection and maintenance. Inform suppliers and
subcontractors of energy requirements Review and consider third-party financing for energy reduction projects Benchmark energy usage/intensity against others in the industry or against other sites
within the company Quantify environmental consequences of energy usage (GHG reporting)
Sample Recommendations
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Energy use is the single largest operating expense in commercial office buildings, representing approximately 1/3 of typical operating budgets. A 10% decrease in energy use can lead to a 1.5% increase in net operating income (NOI) (E Star)
Supports Reduction Initiatives such as Better Buildings/Better Plants, Energy Star, or Smart Energy Now Charlotte participants with their energy reduction targets. Other benefits: – Leased buildings: Can reduce tenant turnover; respond to market demands;
Optimizes strategic investments in the building; Supports prospective tenant marketing; Increase resale value
– Owned Buildings: Better energy performance contributes to increased employee productivity & health.
Alignment of management objectives: Can solidify top-down commitment at all critical levels in CRE (CEOs, CFO’s, energy directors, chief engineers)
Reduce maintenance costs and improve reliability Engage and train employees, reduce turnover Operations and maintenance savings (2-5% per year is typical) and capital
projects in pumps, compressed air, refrigeration systems, motors, boilers
Impact to Operations
Change to D
ata Centers
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Next Steps
Customer Agreement
Participation fee of $11,900 which includes: License for the One-2-Five® software
On-site facilitation of the diagnostic assessment
Planning meetings to finalize critical action items
Strategic Action Plan
Follow-up assessment 6 -12 months after the initial assessment.
Schedule One-2-Five diagnostic assessment
Provide general company information and basic energy consumption data prior to assessment session
Select participants for diagnostic assessment Executive management team, maintenance, engineering, financial, etc.