energy managementunidogefpakistan.org.pk/sites/default/files/publications... · 2020. 12. 23. ·...
TRANSCRIPT
1
ENERGY MANAGEMENT Day 5
Expert Training on Energy System Optimization (ESO)
2
1. Detailed Energy Audit (ISO 50002) 1.1 Pakistan Energy Sector
1.2 ISO 50002 Overview
1.3 Energy Audit Types
1.4 Energy Audit Planning and Support
1.5 Data Collection, Measurement Plan
1.6 On site surveys
1.7 Analysis
1.8 Economic Analysis: Project Packaging
1.9 Reporting
1.10 Baseline Development: Industrial Benchmarking Techniques
3
2. Electrical Energy 2.1 Electrical Energy: Overview
2.2 Electric Lighting Introduction
2.3 Existing Lighting Technologies
2.4 Lighting Energy Management Opportunities
2.5 Electric Motors Fundamentals
2.6 Electric Motors Energy Management Opportunities
2.7 Power Quality
3. Thermal Energy 3.1 Fundamentals and Pshychrometry
3.2 Building Envelope
3.3 Heat Flow and Insulation
3.4 Refrigeration
3.5 Heat Transfer
3.6 Steam Systems
3.7 Renewable Energy
4
4. Mechanical Energy 4.1 Mechanical Energy: Overview
4.2 Compressed Air Systems Demand Side
4.3 Compressed Air Systems Supply Side
4.4 Compressed Air Systems Treatment & Distribution
4.5 Compressed Air Systems Case Studies
4.6 Pump Systems: Enhancing Centrifugal Pumps Efficiency
4.7 Variable Speed Drives: Application
4.8 Fan Systems: Overview
5. Energy Management 5.1 ISO 50001: Requirements
5.2 ISO 50001: Implementation
5.3 Energy and Demand
5.4 Electric Cost Components
5.5 Energy Management Stages
5.6 Measurement and Verification
5.7 Software and Instrumentation
5
ISO 50001: ENERGY MANAGEMENT SYSTEM
Requirements
6
ISO 50001
Specifies energy management system requirements to: › Develop and implement an energy policy to demonstrate
the conformity of the system to the requirements of this International Standard (industrial, commercial and institutional sector).
› Establish objectives, targets and action plans enabling an organization to achieve its policy commitments and to improve its energy performance.
Energy Management Systems
7
ISO 50001 - Requirements
› Carry out an energy review - Analyse data - Identify areas consuming significant amount of energy and areas requiring improvement in energy efficiency
› Establish a benchmark on energy › Set measurable energy targets and deadlines for their implementation › Develop an action plan for energy goals
Organizations shall:
8
ISO 50001
The standard specifies requirements for: › Establishing › Implementing › Maintaining and › Improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement of energy performance
Scope
9
ISO 50001
To ensure sustainability and continuous improvement
Systematic Approach
10
ISO 50001
› To assist organizations to establish systems and processes necessary to improve energy performance, including:
- Energy efficiency - Energy use - Energy consumption
› To lead to reductions in Greenhouse Gas emissions
Objectives
11
ISO 50001 Energy Performance Concept
Energy performance
Energy Efficiency Energy use
Energy consumption
12
2000 2001 2003 2005 2007 2009 2011
ISO 50001 Implementation of ISO 50001
Aims to eventually 20% improvement in energy performance
Evolution of Standards of energy management systems
United States ANSI 2000
Danemark DS 2403
Sweden SS 627750
Ireland IS 393
Spain UNE 216301
South Korea KSA 4000
Europe EN 16001
China
GB/T 2331
International ISO 50001
13
ISO 50001: 2011
› Can be integrated with other ISO management system standards ( ISO 9001, ISO 14001, etc.) without precondition;
› Can be used for organizations of all size in industrial, commercial and institutional sectors.
The Standard
14
ISO 50001 Content: Requirements with Guidance for Use
Energy Management System
ISO 50001 : 2011
- Terms and definitions - EnMS Requirements
- Annex A: Guidance of use - Annexe B: Relation with others standards
15
ISO 50001
1: General requirements 2: Management responsibility 3: Energy policy 4: Energy Planning 5: Implementation and operation 6: Checking 7: Management review
EnMS Model for ISO 50001
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
16
ISO 50001 Approach Model: Continual improvement
•Do • Check
• Plan •Act
4 1
2 3
Energy Policy and energy planning
Implementation and operation
M&V analysis, Conformities analysis Internal audit
Management review
17
ISO 50001 Approach Model: Continual improvement Plan: conduct the energy review and establish the baseline that will improve energy performance in accordance with the organization’s energy policy;
Do: implement the energy management action plans;
Check: monitor and measure processes and the key characteristics of operations determining the energy performance against the energy policy and objectives;
Act: takes actions to continually improve energy performance and the EnMS.
18
ISO 50001 General Requirements The organization shall: › Establish the context and boundaries for the EnMS and
the organization’s intended outcomes; › Get management commitment; › Establish, document, implement, maintain and improve an
EnMS in accordance with the requirements of ISO 50001; › Determine how it will meet the requirements of ISO 50001
to achieve continual improvement of its energy performance and of its EnMS.
19
ISO 50001: ENERGY MANAGEMENT SYSTEM
Implementation
20
ISO 50001: Implementation
› Establish energy policy › Identify people and
resources › Site energy mapping
- Perform energy review and understand how/why energy is used
› Review energy costs
Set the Stage
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
21
ISO 50001: Implementation
› Understand how energy management is currently performed
› Identify, record, and prioritize opportunities for improvements
Assess Current Situation
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
22
Lead Responsible Key Contribution Core team Management representative Director of operations Responsible for
implementation
Technical representative Responsible for production and maintenance
Integrate energy aspects in the program for the production and maintenance
Advisory team Executive PDG Management commitment
Supply Purchasing manager Integrate energy efficiency in procurement
Energy efficiency consulting services
Company specializing in energy efficiency
Energy audit, energy target, training, etc.
ISO 50001: Implementation Assess Current Situation – Energy Team
23
ISO 50001: Implementation
› Significant people - Formalize “energy team” - Build awareness and train
staff as required › Energy reduction targets
- Communicate objectives and targets to staff
› Develop methods to measure performance of system
Build Management System Components
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
24
ISO 50001: Implementation Build Management System Components
25
ISO 50001: Implementation Build Management System Components – Energy savings opportunities (year #1)
Implementation Verification method Estimated savings
1. Optimizing line#1 by measurement and targeting
Jun 2012 IPMVP Option B: Measurement of Consumption for line#1
7 125 GJ 71 250 $
2. Modernization of lighting systems
September 2012 IMPVP Option A: Power measurement
6 000 GJ 60 000 $
3. Stop compressors during downtime
October 2012 IMPVP Option B: Measurement of compressor’s consumption
2 000 GJ 20 000 $
26
ISO 50001: Implementation
› Implement projects and initiatives according to plans
› Energy savings register - Implement procedures to
ensure success › Measure and report
performance
Implementation Plan
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
27
ISO 50001: Implementation Implementation Plan – Energy Intensity (Production line#1)
28
ISO 50001: Implementation
› Monitoring, measurement and analysis
- Check to see if the system is working
› Nonconformities, correction, corrective and preventive action
- Act where required to refine system
› Internal audit of the EnMS
Checking Performance
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
29
ISO 50001: Implementation Checking Performance
30
ISO 50001: Implementation
Proceed to: › Review Policies › Review of action plans +
performance indicators › Review of results › Review allowed resources › Survey Changes/System
improvements
Management Review
Management review
Checking
Implementation & Operation
Energy Planning
Energy Policy
31
ISO 50001 Energy Gain - Reductions
› Power consumption of 5 to 37%* › GHG emissions › Production costs › Vulnerability to rising energy prices
(rates)
* Case Study Certification in Europe
32
ISO 50001 Non-Energy Gain - Increase
› Operational effectiveness › Cooperation between departments › Communication between departments › Organizational behavior improvement
33
ISO 50001 Further Information
› Buy and read ISO 50001 › Follow training “Introduction to ISO 50001” at any institute
for energy training – Ex. www.cietcanada.com › Contact Econoler
34
ENERGY AND DEMAND
Overview
35
Load profile
0
250
500
750
1000
Load
(kW
)
Time of Day
Building Cooling Load ProfileConventional Air Conditioning (CAC)
Building Load
6.1.2
36
Definition: Actual kWh used Peak kW × Time in hours Example: Compute the daily load factor Peak kW = 1000 kW Energy use = 14 000 kWh Time = 24 hours LF = 58.3 %
Facility electric load factor FLFe
Load Factor =
37
Electrical demand vs supply • Power demand
• Load factor - amount of hours, total usage in time period • Load profile - shape of the usage relative to time • Management - mechanisms to change the above
• Shifting
• Shedding
• Energy efficiency
• Power supply • Quality – influences efficiency of & damage to equipment • Variation/imbalance – changes/time within set parameters • Feedback effects – own equipment on supply
38
Load shifting • No energy saving • Save only on peak demand • Result in demand cost
saving due to tariff • No impact on production • No environmental saving
Time
Before Load Shifting
Ener
gy U
sage
6.1.5
39
Load shedding/ Peak clipping?
• Loss of production • “Energy saving” • Demand saving • “Energy cost saving” • Loss of income more
than energy cost saving
Time
Ener
gy U
sage
Before
Load Shedding
6.1.6
40
Energy efficiency • Energy saving • Demand saving • Cost saving • No impact on
production • Emission saving
Time
Ener
gy U
sage
Before
Energy Efficiency
6.1.7
41
ELECTRIC COST COMPONENTS
Overview
42
Electric cost components • Admin charge • (Fuel adjustment) • Energy cost - PKR/kWh • Maximum demand cost (MD) - PKR/kW/month
• Penalty adjustments: • Power factor: PKR/kVA/month or kW * (PFrequired/PFactual) • MD: Ratchet clause % of billed demand over last 11 months • Take maximum and apply for the month • Also apply ratchet calculation for following 11 months
43
ENERGY MANAGEMENT
Stages
44
Energy Management Stages PROJECT IDENTIFICATION
ENERGY AUDIT & ASSUMPTIONS
RECOMMENDATIONS FOR IMPLEMENTATION
APPROVAL FOR FUNDING
DETAIL DESIGN
IMPLEMENTATION
COMISSIONING
OPERATION & MAINTENANCE
EM Project Stages
Energy Audit Stages
6 3 4
45
Energy Audit Stages IDENTIFY ENERGY
SOURCES AND COSTS
ESTABLISH PROFILE OF ENERGY USE AND
INTENSITY
COMPILE ENERGY USE INVENTORY
ESTABLISH ENERGY USE PATTERNS
COMPARATIVE ANALYSIS
Energy Audit Stages
IDENTIFY ENERGY SAVING OPPORTUNITIES
6.3.5
46
MEASUREMENT & VERIFICATION
Overview
47
M&V Project Stages SCOPING STUDY
DEVELOP M&V PLAN
M&V BASELINE
POST-IMPLEMENTATION ASSESSMENT
PERFORMANCE ASSESSMENT
M&V Project Stages
Did you get BUY-IN?
Yes
No Refine M&V Plan
Did you get BUY-
IN? Yes
No Refine M&V Baseline
M&V PERFORMANCE TRACKING:
MONTHLY- AND ANNUAL SAVINGS REPORTS
BASELINE ADJUSTMENTS
6.4.2
48
EE and M&V Project Interaction
PROJECT IDENTIFICATION
ENERGY AUDIT & ASSUMPTIONS
RECOMMENDATIONS FOR IMPLEMENTATION
APPROVAL FOR FUNDING
DETAIL DESIGN
IMPLEMENTATION
COMISSIONING
OPERATION & MAINTENANCE
SCOPING REPORT
DEVELOP M&V PLAN
M&V BASELINE
POST-IMPLEMENTATION ASSESSMENT
PERFORMANCE ASSESSMENT
EE Project Stages
M&V Stages
Did you get BUY-IN?
Yes
No Refine M&V Plan
Did you get BUY-
IN? Yes
No Refine M&V Baseline
M&V PERFORMANCE TRACKING:
MONTHLY- AND ANNUAL SAVINGS REPORTS
BASELINE ADJUSTMENTS
6.4
49
• Substantiation of payments for performance • Lower transaction costs in an energy performance contract • International credibility for energy savings reports
Benefits of M & V
6.4.4
50
M&V is part of an Energy Management System
(WTEA)
(WTEA / DEA)
Adapted From UNIDO
51
Measurement & Verification DEFINITION
M&V is a process that uses measurement to determine, in a reliable manner, the actual energy savings generated at an individual site by an energy management project.
52
Measurement & Verification PURPOSE > To demonstrate the
performance of a project undertaken by an ESCO
> To support the evaluation of regional or national energy efficiency programs
> To make it possible to obtain emission reduction credits
PRINCIPLE : Base formula for savings calculation
Energy Consumption at Base Conditions
- Energy Consumption
after EE measure
Energy Savings
=
53
Measurement & Verification
> One can measure energy use before and after the implementation of an ECM
> The difference “before and after” alone is not truly representative of the savings
> Adjustments need to be made based on the changes in conditions before and after.
Savings measurement
54
Measurement & Verification Detailed Activities
• Installation, calibration and maintenance of logging meters;
• Data collection and processing; • Developing a reliable and transparent
calculation and estimating method; • Calculating the savings based on the
measurement data; • Monitoring and quality assurance; • Verification of the reports by a third-party
expert, if necessary.
M&V activities include:
55
Measurement & Verification WHEN?
Energy Audit
Design Construction Follow-up
Baseline Measurement
M&V Preliminary
Plan Measurement during Follow-up
Period
? ?
Final M&V Plan
56
Measurement & Verification WHAT? Energy Cost Savings
Reductions in energy use
Reductions in peak demand
Change of energy rates
Shifting energy usage to lower cost periods
Switching to less expensive fuels
Self-generation (and cogeneration/CHP)
57
Measurement & Verification PROTOCOLS NAESCO 1.3
NEMVP
IPMVP IPMVP IPMVP
ASHRAE G-14
ASHRAE Guidelines G14-2002
1993 1996
1997
2000 2001
2008 2007
2010 2012
58
Measurement & Verification IPMVP PROTOCOL > Defines the terms used for activities related to M&V in an EE project.
> Defines the standardized approaches to measure the savings
> These approaches reassure factory or site owners > Defines the content of M&V plans which document the
entire M&V effort to be undertaken. > Serves as an introduction to methods of statistical analysis. > Provides recommendations on achieving an appropriate
and realistic balance between measurement accuracy and the associated costs.
> Sets out the requirements for savings monitoring/tracking reports
59
Measurement & Verification M&V OPTIONS
Option A: Retrofit
Isolation: Measurement
of Key Parameters.
Option B: Retrofit
Isolation: Measurement
of All the Parameters.
Option C: Whole Facility.
Option D: Calibrated Simulation.
60
If time permits, install analysis tool-pack on personal computer, and perform the following on the shown data (obtain data from lecturer) • Perform linear regression on the data of the period January 2015 to
December 2015 • Add a trend-line to the plot and show the resultant equation • Discuss the R2 value of the equation/model • Use the model/equation to calculate the “expected” electricity
consumption for Jan 2016 to Dec 2016 • Calculate the difference between the actual and expected electricity
consumption • Did the company consume more or less than expected over the
course of 2016?
Measurement & Verification Exercise
61
SOFTWARE & INSTRUMENTATION
Overview
62
How much does it cost to use an energy project analysis tool?
cost accuracy
How accurate is an energy project analysis tool?
Vs. › It depends on the tool
› It depends on the required accuracy of the inputs
› It depends on the tool
› It depends on the required accuracy of the inputs
Key Considerations when Using Software Tools
Software
63
RETScreen 4 and RETscreen Expert
64
› Builds the capacity of planners, decision-makers and industry to implement energy efficiency, renewable energy and cogeneration projects
› Energy efficiency (EE) models for residential, commercial & institutional buildings as well as for industrial facilities & processes
› Renewable energy, cogeneration & EE models integrated into one software file & emerging technologies, such as wave & ocean current power
› Climate database expanded to 4,700 ground-stations & NASA Satellite Dataset Integrated within the software to cover populated areas across the Earth’s surface
› Project database providing users with instant access to key data and information for hundreds of case studies & project templates
› Software & databases translated into 35 languages that cover 2/3 of the world’s population and available at the click of the mouse
RETScreen 4 and RETscreen Expert
65
Clean Project Analysis with RETScreen
66
Fuel Fuel type 1 Fuel type 2 Fuel type 3 Fuel type 4 Fuel type 5 Fuel type 6Fuel type Electricity Natural gas - m³Fuel consumption - unit MWh m³ #N/A #N/A #N/A #N/AFuel rate - unit $/kWh $/m³ #N/A #N/A #N/A #N/AFuel rate 0.100 0.400
Schedule Unit Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6Description 24/7 Occupied
Occupied Occupied Occupied Occupied OccupiedTemperature - space heating °C 22.0 20.0Temperature - space cooling °C
Unoccupied Unoccupied Unoccupied Unoccupied UnoccupiedTemperature - unoccupied +/-°C 2.0
Occupied Occupied Occupied Occupied OccupiedOccupancy rate - daily h/d h/d h/d h/d h/d h/dMonday 24 16.0Tuesday 24 16.0Wednesday 24 16.0Thursday 24 16.0Friday 24 16.0Saturday 24 5.0Sunday 24 5.0Occupancy rate - annual h/yr 8,760 4,693 0 0 0 0
% 100% 54% 0% 0% 0% 0%
Heating/cooling changeover temperature °C 16.0Length of heating season d 241Length of cooling season d 124
Show: Heating Cooling ElectricityIncremental initial costs
Fuel cost savings
Incremental O&M savings Simple payback
Include measure?
Energy - proposed case MWh MWh MWh $ $ $ yr Heating systemFurnace 0 - - 0 0 0 - Cooling systemRefrigeration - 0 - 10,000 1,179 1,000 4.6 Building envelopeBuilding envelope 163 0 - 20,000 19,193 0 1.0 VentilationLightsLights - - 128 10,000 5,220 0 1.9 Electrical equipmentComputer - - 14 0 391 0 0.0 Hot waterHot water 8 - - 0 41 0 0.0 PumpsFansMotors30 Hp - - 524 10,000 2,343 0 4.3 10 Hp - - 290 5,000 6,462 0 0.8 Process electricityProcess heatProcess steamSteam lossesHeat recoveryCompressed airCompressor - - 60 10,000 3,949 200 2.4 RefrigerationCooling system - 176 - 0 2,043 0 0.0 OtherTotal 171 176 1,016 65,000 40,821 1,200 1.55
Fuel type
Fuel consumption -
unit Fuel rateFuel
consumption Fuel costFuel
consumption Fuel cost Fuel savedFuel cost savings
Electricity MWh 100.000$ 1,282.0 128,200$ 1,066.1 106,612$ 215.9 21,587$ Natural gas m³ 0.400$ 69,975.7 27,990$ 21,890.7 8,756$ 48,085.0 19,234$ Total 156,190$ 115,369$ 40,821$
Project verificationFuel
consumptionFuel type Base caseElectricity MWh 1,300.0 1,282.0 -1%Natural gas m³ 60,000.0 69,975.7 14%
Heating Cooling Electricity TotalEnergy MWh MWh MWh MWhEnergy - base case 547 248 1,199 1,994Energy - proposed case 171 176 1,016 1,363Energy saved 376 72 184 631Energy saved - % 68.7% 28.9% 15.3% 31.6%
BenchmarkEnergy unit kWhReference unit m² 3,850User-defined m² 2,000
Benchmark Heating Cooling Electricity TotalEnergy kWh/m² kWh/m² kWh/m² kWh/m²Energy - base case 142 64 312 518Energy - proposed case 44 46 264 354Energy saved 98 19 48 164
Show dataSummary
Show data
RETScreen Energy Model - Energy efficiency measures project
Base case Proposed case Fuel cost savingsFuel
Fuel consumption -
unit
Fuel consumption -
variance
Fuel consumption -
historical
Fuels & schedules Show data
Facility characteristics
Complete Cost Analysis sheet
Method 1 Notes/Range Second currencyMethod 2 Second currency Notes/Range None
Cost allocation
Unit Quantity Unit cost Amount Relative costs
Feasibility study cost -$ Sub-total: -$ 0.0%
Development cost -$ Sub-total: -$ 0.0%
Engineering cost -$ Sub-total: -$ 0.0%
Incremental initial costs 65,000$ 100.0%
Spare parts % -$ Transportation project -$ Training & commissioning p-d -$ User-defined cost -$ Contingencies % 65,000$ -$ Interest during construction 65,000$ -$ Sub-total: Enter number of months -$ 0.0%
65,000$ 100.0%
Unit Quantity Unit cost Amount
O&M (savings) costs project (1,200)$ Parts & labour project -$ User-defined cost -$ Contingencies % (1,200)$ -$ Sub-total: (1,200)$
Natural gas m³ 21,891 0.400$ 8,756$ Electricity MWh 1,066 100.000$ 106,612$ Sub-total: 115,369$
Unit Quantity Unit cost Amount
Natural gas m³ 69,976 0.400$ 27,990$ Electricity MWh 1,282 100.000$ 128,200$ Sub-total: 156,190$
Unit Year Unit cost AmountUser-defined cost -$
-$ End of project life cost -$
Periodic costs (credits)
Annual costs (credits)
Annual savings
Energy efficiency measures
Balance of system & miscellaneous
Total initial costs
O&M
Fuel cost - proposed case
Go to Emission Analysis sheet
RETScreen Cost Analysis - Energy efficiency measures projectSettings
Initial costs (credits)Feasibility study
Development
Engineering
Fuel cost - base case
Financial parameters Project costs and savings/income summary Yearly cash flowsGeneral Year Pre-tax After-tax Cumulative
Fuel cost escalation rate % 2.0% 0.0% $ 0 # $ $ $Inflation rate % 2.0% 0.0% $ 0 0 -19,500 -19,500 -19,500Discount rate % 10.0% 0.0% $ 0 1 36,680 36,680 17,180Project life yr 20 0.0% $ 0 2 37,537 37,537 54,716
0.0% $ 0 3 38,411 38,411 93,128Finance 0.0% $ 0 4 39,303 39,303 132,431
Incentives and grants $ 0 0.0% $ 0 5 40,213 40,213 172,643Debt ratio % 70.0% 100.0% $ 65,000 6 41,141 41,141 213,784Debt $ 45,500 0.0% $ 0 7 42,087 42,087 255,871Equity $ 19,500 100.0% $ 65,000 8 43,052 43,052 298,924Debt interest rate % 6.00% 9 44,037 44,037 342,961Debt term yr 10 $ 0 10 45,042 45,042 388,002Debt payments $/yr 6,182 11 52,248 52,248 440,250
12 53,293 53,293 493,543$ -1,200 13 54,359 54,359 547,902
Income tax analysis $ 115,369 14 55,446 55,446 603,348Effective income tax rate % $ 6,182 15 56,555 56,555 659,903Loss carryforward? $ 120,351 16 57,686 57,686 717,589Depreciation method 17 58,840 58,840 776,429Half-year rule - year 1 yes/no Yes 18 60,017 60,017 836,446Depreciation tax basis % $ 0 19 61,217 61,217 897,662Depreciation rate % $ 0 20 62,441 62,441 960,104Depreciation period yr 15 $ 0 21 0 0 960,104Tax holiday available? yes/no No 22 0 0 960,104Tax holiday duration yr 23 0 0 960,104
$ 156,190 24 0 0 960,104Annual income $ 0 25 0 0 960,104Electricity export income $ 0 26 0 0 960,104
Electricity exported to grid MWh 0 $ 0 27 0 0 960,104Electricity export rate $/MWh 0.00 $ 0 28 0 0 960,104Electricity export income $ 0 $ 0 29 0 0 960,104Electricity export escalation rate % $ 156,190 30 0 0 960,104
31 0 0 960,104GHG reduction income 32 0 0 960,104
tCO2/yr 0 33 0 0 960,104Net GHG reduction tCO2/yr 135 Financial viability 34 0 0 960,104Net GHG reduction - 20 yrs tCO2 2,706 % 190.4% 35 0 0 960,104GHG reduction credit rate $/tCO2 % 58.8% 36 0 0 960,104GHG reduction income $ 0 37 0 0 960,104GHG reduction credit duration yr % 190.4% 38 0 0 960,104Net GHG reduction - 0 yrs tCO2 0 % 58.8% 39 0 0 960,104GHG reduction credit escalation rate % 40 0 0 960,104
yr 1.5 41 0 0 960,104Customer premium income (rebate) yr 0.5 42 0 0 960,104
Electricity premium (rebate) % 43 0 0 960,104Electricity premium income (rebate) $ 0 $ 359,945 44 0 0 960,104Heating premium (rebate) % $/yr 42,279 45 0 0 960,104Heating premium income (rebate) $ 0 46 0 0 960,104Cooling premium (rebate) % 19.46 47 0 0 960,104Cooling premium income (rebate) $ 0 6.93 48 0 0 960,104Customer premium income (rebate) $ 0 $/MWh 49 0 0 960,104
$/tCO2 (312) 50 0 0 960,104Other income (cost)
Energy MWh Cumulative cash flows graphRate $/MWhOther income (cost) $ 0Duration yrEscalation rate %
Clean Energy (CE) production income CE production MWh 1,066CE production credit rate $/kWhCE production income $ 0CE production credit duration yrCE production credit escalation rate %
Fuel type
Energy delivered
(MWh) Clean energy1 Electricity 1,066 Yes2 Natural gas 228 No3 No4 No5 No6 No7 No8 No9 No# No# No# No# No# No# No# No# No# No Year
Periodic costs (credits)
Heating system
After-tax IRR - equityAfter-tax IRR - assets
Total initial costs
Customer premium income (rebate)Other income (cost) - yrsCE production income - yrsTotal annual savings and income
Annual savings and incomeFuel cost - base case
Debt payments - 10 yrs
End of project life - cost
Total annual costsDeclining balance
O&MFuel cost - proposed case
RETScreen Financial Analysis - Energy efficiency measures project
No
Annual costs and debt payments
Cooling system
Energy efficiency measuresUser-defined
Balance of system & misc.
Incentives and grants
Initial costsFeasibility studyDevelopmentEngineeringPower system
Cum
ulat
ive
cash
flow
s ($
)
Pre-tax IRR - equityPre-tax IRR - assets
Electricity export incomeGHG reduction income - 0 yrs
GHG reduction cost
Net Present Value (NPV)Annual life cycle savings
Benefit-Cost (B-C) ratioDebt service coverageEnergy production cost
Simple paybackEquity payback
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Sensitivity analysis
Perform analysis onSensitivity rangeThreshold 75 %
$52,000 58,500 65,000 71,500 78,000
$ -20% -10% 0% 10% 20%124,952 -20% 43.0% 35.9% 30.4% 26.1% 22.7%140,571 -10% 143.4% 124.3% 109.0% 96.5% 86.2%156,190 0% 245.3% 214.8% 190.4% 170.5% 153.9%171,809 10% 347.4% 305.5% 272.0% 244.6% 221.8%187,428 20% 449.4% 396.2% 353.7% 318.9% 289.9%
$52,000 58,500 65,000 71,500 78,000
$ -20% -10% 0% 10% 20%92,295 -20% 396.1% 348.8% 311.0% 280.1% 254.3%
103,832 -10% 320.7% 281.8% 250.7% 225.3% 204.1%115,369 0% 245.3% 214.8% 190.4% 170.5% 153.9%126,906 10% 170.0% 147.9% 130.2% 115.8% 103.8%138,442 20% 94.9% 81.3% 70.5% 61.7% 54.4%
$52,000 58,500 65,000 71,500 78,000
% -20% -10% 0% 10% 20%4.80% -20% 247.1% 216.6% 192.2% 172.2% 155.6%5.40% -10% 246.2% 215.7% 191.3% 171.4% 154.8%6.00% 0% 245.3% 214.8% 190.4% 170.5% 153.9%6.60% 10% 244.4% 213.9% 189.5% 169.6% 153.0%7.20% 20% 243.5% 213.0% 188.6% 168.7% 152.1%
Risk analysis
Perform analysis on
Parameter Unit Value Range (+/-) Minimum MaximumInitial costs $ 65,000 10% 58,500 71,500O&M $ -1,200 100% 0 -2,400Fuel cost - proposed case $ 115,369 5% 109,600 121,137Fuel cost - base case $ 156,190 5% 148,380 163,999Debt ratio % 70% 5% 67% 74%Debt interest rate % 6.00% 10% 5.40% 6.60%Debt term yr 10 20% 8 12
Median % 189.7%Level of risk %Minimum within level of confidence % 138.2%Maximum within level of confidence % 265.1%
Fuel cost - proposed case
Initial costs
RETScreen Sensitivity and Risk Analysis - Energy efficiency measures project
After-tax IRR - equity20%
Initial costsFuel cost - base case
Initial costs
Debt interest rate
After-tax IRR - equity
Freq
uenc
y
Distribution - After-tax IRR - equity
Sorte
d by
the
impa
ct
Relative impact (standard deviation) of parameter
Impact - After-tax IRR - equity
-0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8
Debt interest rateDebt termO&MDebt ratioInitial costsFuel cost - proposed caseFuel cost - base case
0%
2%
4%
6%
8%
10%
12%
14%
16%
14.1% 15.4% 16.7% 17.9% 19.2% 20.5% 21.7% 23.0% 24.3% 25.6%
Method 2:
Five Steps
Two Methods for Clean Energy Project Analysis
67
Energy Efficiency Technologies Renewable Energy Technologies Building envelopes Biomass
Compressed air systems Geothermal power
Heating/cooling systems Landfill gas
Lighting Micro hydro turbine
Process heat and steam Photovoltaics
Pumps, fans and motors Solar air and water heating
Refrigeration Solar thermal power
Steam losses Tidal, wave and ocean current power
Ventilation Wind turbines
RETScreen® allows on-grid and off-grid analyses for:
RETScreen Energy Models
68
• Standardized methodology validated by a team of experts from government
and industry
• Three methods available:
1. Standard analysis: RETScreen automatically uses IPCC and industry
standard values for:
• CO2 equivalence factors for CH4 and N2O
• CO2, CH4, and N2O emissions for common fuels
• Efficiency for conversion of fuel to heat or electricity
2. Custom analysis: the user specifies these values
3. User-defined analysis: user can enter GHG emission factors directly
GHG Emission Analysis
69
Detailed cost and credit analysis (initial, periodic, annual and end of project life)
List of project costs specific to technology (e.g., geothermal heat exchanger, landfill gas)
Financing (including capital investment, debt ratio & length, interest rate, discount rate and inflation)
Taxes on equipment & income (or savings)
Environmental credits and/or subsidies (e.g., GHG credits, deployment incentives)
Decision-makers’ definition of cost-effectiveness (e.g., payback period, IRR, NPV, life-cycle savings, B-C ratio)
Financial parameters Project costs and savings/income summary Yearly cash flowsGeneral Year Pre-tax After-tax Cumulative
Fuel cost escalation rate % 2,0% 0,3% $ 2 000 000 # $ $ $Inflation rate % 2,0% 2,8% $ 22 000 000 0 -236 123 767 -236 123 767 -236 123 767Discount rate % 10,0% 15,8% $ 125 000 000 1 10 843 430 10 843 430 -225 280 337Project life yr 30 81,1% $ 639 745 890 2 11 950 169 11 950 169 -213 330 168
0,0% $ 0 3 13 079 044 13 079 044 -200 251 124Finance 0,0% $ 0 4 14 230 495 14 230 495 -186 020 629
Incentives and grants $ 500 000 0,0% $ 0 5 9 884 572 9 884 572 -176 136 057Debt ratio % 70,0% 0,0% $ 0 6 16 602 946 16 602 946 -159 533 111Debt $ 552 122 123 0,0% $ 0 7 17 824 876 17 824 876 -141 708 235Equity $ 236 623 767 100,0% $ 788 745 890 8 19 071 244 19 071 244 -122 636 991Debt interest rate % 7,00% 9 20 342 539 20 342 539 -102 294 452Debt term yr 30 $ 500 000 10 15 544 289 15 544 289 -86 750 163Debt payments $/yr 44 493 536 11 22 961 917 21 654 135 -65 096 028
12 24 311 026 22 371 253 -42 724 775$ 19 359 874 13 25 687 117 23 127 566 -19 597 208
Income tax analysis $ 220 158 510 14 27 090 730 23 920 965 4 323 757Effective income tax rate % 15,0% $ 44 493 536 15 21 793 074 19 029 526 23 353 283Loss carryforward? $ 284 011 920 16 23 338 495 19 963 592 43 316 875Depreciation method 17 24 695 136 20 743 821 64 060 696Half-year rule - year 1 yes/no Yes 18 26 078 909 21 551 546 85 612 242Depreciation tax basis % 90,0% $ 5 000 000 19 27 490 358 22 385 097 107 997 339Depreciation rate % 8,0% $ 0 20 21 500 299 16 927 581 124 924 920Depreciation period yr 15 $ 10 000 000 21 32 623 148 26 014 199 150 939 119Tax holiday available? yes/no Yes 22 34 165 482 26 953 510 177 892 629Tax holiday duration yr 2 23 35 738 662 27 913 151 205 805 779
$ 0 24 37 343 306 28 891 623 234 697 402Annual income $ 290 398 107 25 30 777 013 22 914 851 257 612 253Electricity export income $ -1 467 964 26 40 649 515 30 899 048 288 511 301
Electricity exported to grid MWh 4 839 968 $ 0 27 42 352 376 31 924 949 320 436 251Electricity export rate $/MWh 60,00 $ 200 28 44 089 294 32 963 558 353 399 808Electricity export income $ 290 398 107 $ 4 839 968 29 45 860 950 34 013 253 387 413 062Electricity export escalation rate % 2,0% $ 293 770 312 30 20 497 616 20 497 616 407 910 678
31 0 0 407 910 678GHG reduction income 32 0 0 407 910 678
tCO2/yr 0 33 0 0 407 910 678Net GHG reduction tCO2/yr -733 982 Financial viability 34 0 0 407 910 678Net GHG reduction - 30 yrs tCO2 -22 019 461 % 7,6% 35 0 0 407 910 678GHG reduction credit rate $/tCO2 2,00 % -0,2% 36 0 0 407 910 678GHG reduction income $ -1 467 964 37 0 0 407 910 678GHG reduction credit duration yr 20 % 6,7% 38 0 0 407 910 678Net GHG reduction - 20 yrs tCO2 -14 679 641 % -1,1% 39 0 0 407 910 678GHG reduction credit escalation rate % 2,0% 40 0 0 407 910 678
yr 14,5 41 0 0 407 910 678Customer premium income (rebate) yr 13,8 42 0 0 407 910 678
Electricity premium (rebate) % 5,0% 43 0 0 407 910 678Electricity premium income (rebate) $ 0 $ -72 272 969 44 0 0 407 910 678Heating premium (rebate) % $/yr -7 666 662 45 0 0 407 910 678Heating premium income (rebate) $ 0 46 0 0 407 910 678Cooling premium (rebate) % 0,69 47 0 0 407 910 678Cooling premium income (rebate) $ 0 1,24 48 0 0 407 910 678Customer premium income (rebate) $ 0 $/MWh 61,41 49 0 0 407 910 678
$/tCO2 No reduction 50 0 0 407 910 678Other income (cost)
Energy MWh 100 Cumulative cash flows graphRate $/MWh 2,000Other income (cost) $ 200Duration yr 20Escalation rate % 2,0%
Clean Energy (CE) production income CE production MWh 4 839 968CE production credit rate $/kWh 0,001CE production income $ 4 839 968CE production credit duration yr 15CE production credit escalation rate % 2,0%
Fuel type
Energy delivered
(MWh) Clean energy1 Natural gas 4 839 968 Yes2 No3 No4 No5 No6 No7 No8 No9 No# No# No# No# No# No# No# No# No# No Year
After-tax IRR - equityAfter-tax IRR - assets
Total initial costs
Customer premium income (rebate)Other income (cost) - 20 yrsCE production income - 15 yrsTotal annual savings and income
Annual savings and incomeFuel cost - base case
Incentives and grants
Electricity export incomeGHG reduction income - 20 yrs
Debt payments - 30 yrs
Maintenance - 5 yrs
End of project life - cost
Total annual costs
Periodic costs (credits)
Pre-tax IRR - assets
O&MFuel cost - proposed case
RETScreen Financial Analysis - Power project
No
Annual costs and debt payments
Cooling system
Energy efficiency measuresUser-defined
Balance of system & misc.
Debt service coverage
Declining balance
Cum
ulat
ive
cash
flow
s ($
)
Initial costsFeasibility studyDevelopmentEngineeringPower systemHeating system
Pre-tax IRR - equity
Energy production cost
Simple paybackEquity payback
GHG reduction cost
Net Present Value (NPV)Annual life cycle savings
Benefit-Cost (B-C) ratio
-300 000 000
-200 000 000
-100 000 000
0
100 000 000
200 000 000
300 000 000
400 000 000
500 000 000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Cost and Financial Analysis
70
• At the preliminary feasibility stage, there
is much uncertainty about many input
parameters.
• How is the profitability of the project
affected by errors in the values provided
by the user?
Sensitivity and Risk Analysis
71
Settings
As fired fuelBiogasBuilding envelope propertiesAppliances & equipmentElectricity rate - monthlyElectricity rate - time of useGHG equivalence
Landfill gas
LandfillYear landfill opened yr 1970Final year landfill used yr 2010Waste disposal benchmark years yr 1970 1980 1990 2000 2005 2010Waste disposal rate t/yr 100.000 150.000 200.000 150.000 150.000 50.000Total waste in landfill (41 yrs) t 5.467.500
Landfill gas (LFG) GJ/h m³/hLag time before LFG generation yr 1Methane generation constant (k) 0,05Methane by volume of LFG % 50%Methane generation from waste (Lo) m³/t 170Inerts in waste adjustment factor % 10%LFG generation - theoretical m³/t 340LFG collection efficiency % 75%LFG generation - potential m³/t 255Heating value of LFG MJ/m³ 18,54LFG - CH4 emission factor kg/GJ 17,99
Energy projectLFG fuel consumption start year yr 10Project life yr 1 Check valueUnits EnergyFuel required - average GJ/h 0,0LFG fuel potential GJ/h 0,0Remaining fuel required GJ/h 0,0Fuel required - annual GJ/yr 0LFG fuel potential - annual GJ/yr 0
Emission analysisLFG system - base case Not collectedPercent of LFG flared - base case %LFG flared - base case GJ/yr 0LFG flared - proposed case GJ/yr 0CO2 emission factor kg/GJCH4 emission factor kg/GJN2O emission factor kg/GJ
User-defined fuel - gasUser-defined fuel - solid
Landfill gas generation rate graph
RETScreen Tools - Energy efficiency measures project
Ground heat exchangerHeat rateHeating value & fuel rateHydro formula costing methodLandfill gasUnit conversionUser-defined fuel
Water & steamWater pumpingWindow propertiesCustom 1Custom 2
0
10
20
30
40
50
60
70
80
90
100
1960 1980 2000 2020 2040 2060 20800
1.000
2.000
3.000
4.000
5.000
6.000
Theoretical Potential Required
RETScreen also offers a set of custom tools
Tools
72
• Built-in Support
• Help
• Product and climate databases
• Case studies and templates
• On-Line Material
• Presentations and speaker notes
• Engineering e-textbooks
• UNEP presentations and guides on EE technologies
Support and Guidelines
Software
73
ASHRAE RTS Excel Based Thermal Modeling Tool
ASHRAE RTS Procedure
Documented in ASHRAE Handbook – Fundamentals Ch.18
Takes Advantage of Steady Periodic Nature of the Cooling Load
Calculation
Based on:
Radiant Time Series: Steady Periodic Zone Response Factors
Steady Periodic Response Factors for Conduction
74
ASHRAE RTS Excel Based Thermal Modeling Tool
75
Software Open Studio (Energy Plus Implementation)
76
Software Air Master +
77
Air Master +
Funded by the US Department of Energy
Windows based
Analysis of multiple facilities and compressors
Extensive database of compressors
Simulates baseline and proposed retrofits
Hourly simulation capability
Individual measure retrofit and system wide dynamic simulation
Detailed life cycle cost analysis
78
Toolkits and Guides NRCAN Energy Savings Toolbox Features
Step by step manual Spreadsheets for various modules:
• Condition survey • Electricity cost • Gas cost • Fuel cost • Comparative analysis • Profile • Load inventory • Fuel systems • Thermal inventory • Envelope • Assess the benefits • Financial analysis • GHG factors
79
Toolkits and Guides
80
Equipment Name Use
KIMO AMI 310 Multi-measurement Unit: Probes: Anemometer / Temp Probe (fan type) Anemometer / Temp (hot wire type/ compact) Hygrometer Probe Surface Temperature Probe Ambient Temperature probe CO / Temp Probe CO2 / Temp Probe Manometer Probe Differential Pressure
Instantaneous / Logging capability
Smart Button Plus Compact reusable temperature logger Harsh environments
Equipment list
81
Name Purpose / Function
Hobo Motor Runtime Logger Motor state (on/off) Senses magnetic field Can be equipped with external sensor Compact
Smart Button Plus Compact reusable temperature logger Harsh environments
Smart Reader Plus 8 Temperature Logger – Takes thermocouple sensor
Smart Reader Plus 7 Universal logger – various signal inputs
Fluke Power Analyzer Power Measurement Power Quality Measurement:
Harmonics Power Factor Many other functions
Logging
Equipment list
82
Name Purpose / Function
Combustion analyzer Analyzes combustion efficiency
Smart Button Plus Compact reusable temperature logger Harsh environments
Smart Reader Plus 8 Temperature Logger – Takes thermocouple sensor
Smart Reader Plus Universal logger – various signal inputs
Fluke Power Analyzer Power Measurement Power Quality Measurement:
Harmonics Power Factor Many other functions
Logging
Equipment list
83
Equipment Smart button logger
84
Equipment Smart Button Logger
85
Smart button logger
86
Equipment List Smart Button Logger - Accessories
87
Smart Reader 8 – Temperature Logger
88
Equipment Smart Reader 7 – Process Logger
89
Internal sensor records magnetic field of motor when operating
Use to log operating state of motor (on/off)
Records are 1 (on) or 0 (off)
No other capability
Cheap, easy to deploy solution
Non-invasive
1 external expansion capability
Operating Theory / Uses
Hobo – ux90 -004 Motor status logger
90
Specifications
Hobo – ux90 -004 Motor status logger
91
Kimo MP 210 multi logger
92
Ultrasonic flowmeter
93
Ultrasonic flowmeter
94
Ultrasonic flowmeter
95
Important parameters to consider....
Fluid type
Fluid temperature
Pipe material
Pipe thickness
Pipe diameter
Ultrasonic flowmeter
96
Combustion Analyzer
97
Uses For Combustion Analyzer
Efficiency
Safety
Pollution
Combustion Analyzer
98
Combustion Analyzer
99
Equipment
Combustion Analyzer
100
Combustion Analyzer
101
Combustion Analyzer
102
Fuel pressure
Primary air
Draft / secondary air
Key Components of Combustion
Combustion Analyzer
103
Combustion Analyzer
Common Combustion Measurements
104
Calculated Values
Combustion Analyzer
105
Calculated Values
Combustion Analyzer
106
Atmospheric Draft Fired Burner
107
Induced Draft Burner Test