electrical distribution solutionsenergy solutions without risk 9 steps to reduce energy input costs...
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Electrical Distribution SolutionsEnergy Solutions without Risk
9 Steps to Reduce Energy Input Costs
Larry GoodRegional Vice PresidentGESI<[email protected]>January, 2007
The Goal
Energy Cost Reduction
through
Energy efficiency
Alternatives
Reliable services
Productivity
How to Reach the Goal
1. Request
2. Energy Audit
3. Business Plan
4. Due Diligence
5. Design
6. Procurement
7. Implementation
8. Commissioning
9. Follow-up
1. Request
Tell us you are interested.
Discuss your goals.
Walkthrough - 1st client meeting & quick inspection
Define what is possible.
Agree on a course of action.
Proposal - Scope of work & price proposal
1st Contract - 2 signatures
2. Energy Audit
Definition: a feasibility study to find and recommendenergy & cost reduction opportunities
Procedure:1. 3 site visits - Investigation, identification of savings
opportunities from interviews, records, measurement and data logging
2. Research - Market search for feasible technical solutions
3. Analysis - Definition of measures, determination of feasibility
4. Report - Comprehensive set of recommendations
5. Presentation - Personal explanation of audit report to client
Energy Audit (cont.)
Result: a report explaining recommended opportunities measure by measure
Indicators:• IRR• NPV• Energy savings• Cost savings• Investment• Emissions reductions
Objectivity:• Auditor is independent of other vendors; sells no product.• Auditor represents best interests of client.
3. Business Plan
Only necessary for large projects
Gives investors security
Either whole business or project specific
Defines type of contract between client and GESI
4. Due Diligence
Financial credibility
Insurance, permitting and licensing issues addressed
Binding legal agreement
Agreement by all to move forward
5. Design
Begins with audit analysis
Measurement & calculation
Equipment specification
Less effort with Level 3 audit, more with Level 2 audit
6. Procurement
Depends on type of contract
Procedure determines timeframe.
GESI’s responsibility in performance contract
Client’s responsibility in other contract types
Full competitive, partial competitive or sole source
GESI assists as requested.
7. Implementation
GESI builds project according to design
Schedule set by suppliers’ delivery and scope of labor
Performance contract: Full responsibility on GESI
Non-performance contract: Progress payments in clearly defined stages
8. Commissioning
Start-up
Testing
Performance verification
Correction of defects
Acceptance by client
9. Follow-up
Measurement & verification (M&V) – verifies savings
Preventive maintenance (PM) – preserves savings
Follow-up depends on type of contract.
Hard requirement for performance guarantees (risk on GESI)
Optional for other arrangements (risk on client), as requested by client
Case Study 1.US ENVIRONMENTAL PROTECTION AGENCY (EPA)NATIONAL VEHICLE AND FUEL EMISSIONS LABORATORY
1. Installed two York Millennium two stage absorption chiller/heaters rated at 440 tons and 575 tons of cooling, respectively, a new cooling tower, and one 3200 MBtu/h Bryon hot water generator.
2. Installed 34 air handling units (AHUs), customized according to planned operation.
3. Installed a 1200-point energy management system.
4. Replaced old motors with high-efficiency equivalents.
5. Converted once-through cooling water systems to closed loop cooling.
6. Installed power factor correction.
7. Installed a 200-kW ONSI fuel cell.
Goals (EPA Case Study cont.)
1. Meet or exceed Federal energy reduction mandates
2. Reduce power plant source emissions
3. Optimize energy cost savings.
4. Restore obsolete and aging infrastructure.
5. Eliminate or replace chlorofluorocarbons (CFCs)
6. Minimize energy waste
7. Maximize the use of the waste energy streams, to feed other processes
8. Use renewable energy (photovoltaic, solar thermal, passive solar, biomass, wind, geothermal, hydropower, and other alternative technologies, such as cogeneration, where cost effective).
Costs & Savings (EPA cont.)
$11 million investment by ESCO
22 years of complete system operation and performance guarantees
Annual contract payments of $1 million
Includes $200,000 of annual operation & maintenance
Case Study 2.Dallas/Fort Worth International Airport (DFW)
Rusty T. Hodapp, P.E., CEM, CEP, LEED,
Energy & Transportation Management Vice President,
Dallas/Fort Worth International Airport
DFW Airport Overview
Jointly owned by Cities of Dallas and Fort Worth
Opened in 1974
The world’s 2nd largest airport encompassing 18,000 acres including 9,000 acres of natural resource areas
Ranked third worldwide in operations totaling over 804,000 annually
Ranked sixth worldwide in serving 60 M passengers
Energy Efficiency Program (DFW cont)
Initiated in 1975
Based on 3 Primary Elements
1. Sound operation and maintenance practices
2. Retrofits where economically and technically feasible
3. Incorporation of energy efficiency into new construction
Dedicated Energy Engineer/Manager since 1979 (Energy Engineer and Analyst added in 2003)
Energy consumption avoided to date is estimated at over 25 trillion BTU (~5 million barrels of oil)
Major Drivers of EE at DFW
Economic Benefits
Air Quality Benefits
Risk Management
Load Growth
Deregulation
Service Reliability
Energy Management Legacy (early adopter)
EE in Retrofits (DFW cont)
RetrofitsTerminal B
Recommendations
- Lighting Retrofit, including auto-dimming ballast & motion sensors
- Replacing and integrating EMCS
- Controls Upgrade on Passenger Loading Bridge AHUs
Estimated Results
- Energy Savings -4.3 million kWh/ yr (17%)
- Simple Payback -5.5 years
EE in New Construction (DFW cont)
District Energy Plant Upgrade Project
Thermal Energy Storage Tank- 56 ft. tall & 138 ft. in diameter
- 6 million gallons- 90,000 ton-hours- Ability to shift a minimum of 5 MW off-peak
Centralized Pre-Conditioned Air System- 12,000 tons Cooling
- 51 MMBtu Heating
Conclusion
Today: Energy security a serious concern for countries dependent on single fuel sources.
Efficiency reduces dependency.
Redundancy reduces risk.
Average 20% global energy price rise
Will continue, not recede
Competitive edge
Never wait to decrease costs and increase reliability.