energy management outlook

ARC E M tARC E M tARC Energy ManagementOutlook

ARC Energy ManagementOutlook

Allen AveryAnalyst

ARC Advisory Group

Wil ChinResearch DirectorARC Advisory Group

[email protected]@arcweb.com

Energy Cost ForecastEnergy Cost Forecast

60

70

40

50

Electricityon

BTU

)

20

30

Electricity

Coal

Natural Gas

Crude Oil

ars

per

mil

lio

0

10

(20

08

Do

lla

Energy Cost Will Rise Dramatically

0

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

2016

2019

2022

2025

2028

2031

2034

2© ARC Advisory Group

Energy Cost Will Rise DramaticallySource: EIA Annual Energy Outlook 2010 Early Release Overview

ARC Energy Management Solutions SurveyARC Energy Management Solutions Survey

Online since September 2009114 respondents

Wide variety of industries represented

Management, Engineering and Marketing functions well represented

M j it f d t f EMEA N th A iMajority of respondents from EMEA, North America

Organizations: manufacturer, supplier, SI, OEM


Energy UseEnergy Use

What percentage or portion of your production costs are made up of energy costs?

25 8%

6.5% 1.6% 1.6%

5% to 10%25.8%

17.7%

24.2%11% to 15%

16% to 20%

21% to 30%

22.6%31% to 40%

41% to 49%

50% or more

Energy is a significant portion of production costs


Energy Management Initiative StatusEnergy Management Initiative Status

Are energy management and energy efficiency already implemented in your company as an integral part of your business and production processes? (check all that apply)

41.1%

37.5%

P d i

Business processes

15.2%Have not implemented an energy management initiative

Production processes

6.3%

0% 10% 20% 30% 40% 50%

Don't know

M d h i l d


Most respondents have implemented energy management initiatives

Does your Organization Have an Energy Management System (EMS)?Does your Organization Have an Energy Management System (EMS)?

26%1. Yes, not integrated

7%

26%2. Yes, integrated with business processes

33%3. Yes, integrated with production processes

17%4. No, plan to implement

5 No do not plan to implement

11%5. No, do not plan to implement

6. Don’t know


7%

Monitoring Energy Cost in the PlantMonitoring Energy Cost in the Plant

Do you monitor the energy costs of your industrial manufacturing processes?

26.6%15 2%6.3%

Monitor energy costs in real time for operating purposes

26.6%15.2%Monitor energy costs periodically for accounting purposes

Do not monitor energy costs

51.9%

Don't know

Many monitor energy costs, but few measure in real time


Do you Monitor Energy Cost? (select all that apply)Do you Monitor Energy Cost? (select all that apply)

19%1. Yes, monitor cost in real-time for operations

40%

19%2. Yes, monitor cost periodically for accounting

32%

40%3. No, only monitor energy consumed

9%

32%4. Don’t know

9%


Energy Management: Make or Buy?Energy Management: Make or Buy?

Do you rely on internally-developed energy management applications, ordo you use a

24 2%

Do you rely on internally developed energy management applications, or do you use a third party solution?

75 8%

24.2%

Use an internally developed solution

Use a solution from and75.8% Use a solution from and outside vendor

Energy management solutions used tend to be “homegrown”


to be “homegrown”

What Kinds of EMS Have You Deployed?(select all that apply)What Kinds of EMS Have You Deployed?(select all that apply)

43%1. Internally developed solution

11%

43%2. Solution from enterprise supplier

26%

11%3. Solution from automation supplier

0%

26%4. Saas, outsourced solution

20%

0%5. Don’t know


20%

Rate the Effectiveness of Your EMS(select all that apply)Rate the Effectiveness of Your EMS(select all that apply)

11%1. Exceeded expectations

31%

11%2. Met expectations

16%3. Did not meet expectations

7%4. Results of EMS not transparent

5 Performance not measured

18%5. Performance not measured

6. Don’t know


18%6. Don t know

ConclusionsConclusions

Energy is a significant portion of production costs

Many formalized internally-developed programs with a y o a ed e a y de e oped p og a scentral oversight

Capture overall usage, monitor energy costs,

Few measure in real time

EMS tend to be home-grown

Emerging, expect high-growth

From accounting to reducing cost

Users need easy open distribution of data

Standardization from supplier solutions


Ready for next step, plant-wide integrated solutions

Thank YouThank YouFor more information, contact the author at

[email protected] or visit our web pages atwww arcweb comwww.arcweb.com