1.0 Energy Management Monitoring and Targeting

7/28/2019 1.0 Energy Management Monitoring and Targeting

1/52

1.0 ENERGY MANAGEMENT,MONITORING & TARGETING


2/52

Principles of EnergyManagement

Procure energy at lowest possible price

Manage energy use at highest energy efficiency

Reusing and recycling energy

Select low investment technology to meet presentrequirement and environment condition

Make use of wastes generated within the plant assources of energy and reducing the component of

purchased fuels and bills


3/52

The 4 pillars of SuccessfulEnergy Management


4/52

Steps in Energy Action Planning


5/52

Top ManagementCommitment and Support

Manpower and funds to achieve

continuous improvement. Appoint energy manager, form a

dedicated energy team and institute anenergy policy.


6/52

Appoint an Energy Manager

The tasks of energy manager are settinggoals, tracking progress, and promotingthe energy management program.

Establish energy performance as a core

value Depending on the size of the

organization, the Energy Manager rolecan be a full-time position or an addition

to other responsibilities Location of energy manager


7/52

Form a Dedicated Energy Team

execute energy management activities acrossthe organization and ensuring integration ofbest practices.

Creating an energy team helps to integrateenergy management activities in an

organization.

In addition to planning and implementingspecific improvements, the energy teammeasures and tracks energy performance and

communicates with management, employeesand other stakeholders.

the team can include a representative fromeach operational area that significantly affectsenergy use


8/52

Plant Management

Other Sections,

Acctts., HRD,

Expansion, R&D, etc.

Manufacturing

Section - 1Energy Management

Division

Manufacturing

Section - 2

Energy manager Shop Manager

Nodal Officer for EM

Organisation structure of Energy

Management

Nodal officials from

each department


9/52

Organisation structure ofEnergy Management in Hindalco

Management

Director

Chief Officer (Mfg)

Chief Officer (Finance & Commerce)

Central Technical Cell

Sectional Heads

Central Energy Cell

Head

Section Coordinators

Alumina

Boiler, Cogen

& Rectifier

Reduction Fabrication Utilities


10/52

Institute an Energy Policy

Energy policy provides the foundation for settingperformance goals and integrating energy managementinto an organization's culture and operations.

Aformal written energy policy acts both as:

A public expression of the organizations commitmentto energy conservation and environmental protection

A working document to guide the energy managementpractices and provides continuity.

It is in the company's best interest that support for

energy management is expressed in a formal writtendeclaration of commitment accompanied by a set ofstated objectives, an action plan for achieving them, anda clear specification of responsibilities.


11/52


12/52

Rashtriya Ispat Nigam Limited

Visakhapatnam Steel Plant

ENERGY POLICY

We, at Visakhapatnam Steel Plant, are committed to optimally utilise

various forms of energy in a cost effective manner to effect conservation

of energy resources. To accomplish this we will :

Monitor closely and control the consumption of various forms ofenergy through an effective Energy Management System.

Adopt appropriate energy conservation technologies.

Maximise the use of cheaper and easily available forms of energy.

Make energy conservation a mass movement with the involvement

of all employees.

Maximise recovery of waste energy.

Reduce Specific Energy Consumption by 1% per year by 2010.

Date Dr. B.N. Singh

14-06-2002 Chairman-cum-Managing Director


13/52

Assess Energy Performance

Understanding current and past energy use

helps an organization identify opportunities toimprove energy performance and gain financialbenefits.

Assessing energy performance is the periodic

process of evaluating energy use for all majorfacilities and functions in the organization andestablishing a baseline for measuring futureresults of energy efficiency efforts.

Key aspects include data collection andmanagement, establishing baseline,benchmarking, analysis and evaluation andconducting technical assessment and audit.


14/52

Data Collection and Management

Collect data Determine appropriate level of detail

Account for all energy sources

Document all energy uses

Collect facility and operational data Track data

Scope

Maintenance

Reporting and communicating

Actions Normalise data

Determine normalisation factor


15/52

Establishing Baseline

Determine the starting point from whichto measure progress

Establish base year

Identify metrics

Publish results


16/52

Benchmark

Compare the energy performance of

facilities to each other, peers andcompetitors, and over time to prioritizewhich facilities to focus on forimprovements.

Facility or organizational performancemay be benchmarked to:

Past performance

Industry average Best in class

Best Practices


17/52

Analysis and Evaluation

Analyze Data -Understand your energy

use patterns and trends.Assessing your energy performancehelps you to: Categorize current energy use by fuel type, operating

division, facility, product line, etc. Identify high performing facilities for recognition and

reuse of best practices.

Prioritize poor performing facilities for immediateimprovement.

Understand the contribution of energy expendituresto operating costs.

Develop a historical perspective and context forfuture actions and decisions.

Establish reference points for measuring and

rewarding good performance.


18/52


19/52


20/52


21/52


22/52

Establish GoalsCreate and express clear, measurable goals, with target dates,for the entire organization, facilities, and other units.

Defined reduction

Best-in-class

Efficiency improvement

Environmental Improvement

Actions

F Fi ld A l i


23/52

Force Field Analysis

Goal: To reduce energy consumption per unit of production

Positive Forces

(Acting towards the achievement of the

Goal)

Negative Forces

(Acting against the achievement of the

Goal)

High price of energy

Energy efficient technology available

Incentive for high power factor

Top Management commitment to energy

conservation

Energy is a relatively high component ofproduct cost

Absence of corporate energy policy

Lack of awareness throughout company

Insufficient skills and knowledge available

Competing corporate priorities

Insufficient financial resources to fund

measures

C t A ti Pl


24/52

Create Action Plan

With goals in place, the organization is nowready to develop a roadmap to improve energyperformance

Successful organizations use a detailed actionplan to ensure a systematic process toimplement energy performance measures.

Unlike the energy policy, the action plan isregularly updated, most often on an annualbasis, to reflect recent achievements, changesin performance, and shifting priorities

While the scope and scale of the action plan isoften dependent on the organization, the stepsbelow outline a basic starting point for creatinga plan

D fi T h i l St d


25/52

Define Technical Steps andTargets

Evaluate technical assessments andaudit results

Determine technical steps

Create performance targets

Set timelines

Establish a tracking system


26/52


27/52

Implement Action Plan

In addition to implementing the technical

aspects of the action plan, consider thefollowing Create communication plan -Develop targeted

information for key audiences about your energymanagement program.

Raise awareness -Build support at all levels of yourorganization for energy management initiatives andgoals.

Build capacity -Through training, access toinformation, and transfer of successful practices,procedures, and technologies, you can expand the

capacity of your staff. Motivate -Create incentives that encourage staff to

improve energy performance to achieve goals.

Track and monitor -Using the tracking systemdeveloped as part of the action plan to track andmonitor progress regularly.

E l t P


28/52

Evaluate Progress

Measure results

Gather tracking data

Benchmark

Review action plan

Get feedback

Assess awareness

Identify critical factors

Quantify side benefits


29/52


30/52

Energy Monitoring &

Targeting

you cant manage what you dont measure


31/52

Define-Energy Monitoring & Targeting

Monitoring is essentially aimed at preservingan established pattern

Targeting is identification of energyconsumption level, which is desirable asmanagement objective to work towardsenergy conservation

Monitoring and Targeting is a managementtechnique in which all plant are managed as

controllable resources in the same way thatraw materials, personnel and capital aremanaged


32/52

Energy Monitoring & Targeting

Monitoring of Energy use in Utilities such asfuel, steam, refrigeration, compressed air,water, effluent and electricity etc.

Energy use compared with production any

other suitable measure regularly forestablishing trends / setting targets

Spotting of variances from trend for remedialaction

Using M&T alone, typical saving potential in

various industrial sectors is between 5 and20%.


33/52

M & T can help to


34/52

M & T can help to

Check accuracy of energy invoices

Allocate energy cost to variousdepartments

Determine energyperformance/efficiency

Record energy use for futurechecking improvements of energyefficiency projects

Highlight performance problemsrelated to equipment /systems

Need for M & T


35/52

Need for M & T

Find out whether energy use is gettingbetter or worse

Spots trends in energy consumption(seasonal, weekly etc.)

Impact on energy use with changes inbusiness

Pin-point areas of wasted energy Comparison with business of similar

nature

How your business has reacted to

changes in past Performance targets for energy

management programme


36/52

Source for Information

Plant level information can be derived fromfinancial accounting system-Utility cost cente

Plant department level information can befound in comparative energy consumption

data for group of similar facilities, servicemeter readings

System level (for e.g. boiler plant can beobtained from sub-metering data

Equipment level information can be obtainedfrom name plate data, runtime and scheduleinformation, sub-metered data on specificenergy equipment

Data & Information Analysis


37/52

Data & Information Analysis

Annual energy cost sheet

Thermal Energy Bill Electricity Bill TotalEnergyBill

Month Fuel1

Fuel2

Fuel3

TotalRs.Lakhs

DayKwh

NightKwh

MaximumDemand

TotalRs.Lakhs

Rs. Lakhs

12

34

5

67

89

10

1112

Sub-Totals

%


38/52

Electricity

45%

Furnace

Oil 38%

LPG12%

HSD5%

% Share of fuels based

on energy bill


39/52

Pie Chart on Energy Consumption

Table 8.2 : Fuel conversion data

Energy source Supply unit Factor to Kcal

Electricity kWh 860

HSD kg 10,500

Furnace Oil kg 10,200

LPG kg 12,000

Figure 8.2 % Share of fuels based on consumption in kcals


40/52

Relating Energy Consumption and Production.Energy current year Vs Previous Year

It does not tell full story about what is happening.


41/52

Moving Annual Total Energy vs.Production

Each point represents the sum of previous 12 months

This techniques smoothens errors due to meter readings and seasons etc


42/52

Specific Energy Consumption

SEC is very low in December 1999

S ifi E ti ith


43/52

Specific Energy consumption withProduction

Add production data to the SEC chart.

SEC is very low in December 1999 because of record level production

This indicates there could be some fixed energy consumption


44/52

Energy vs. Production

Scatter diagram

Derive an equation for slope

Production- Energy Relationship


45/52

Production Energy Relationship

Energy consumed for the period) =

(M x Production for same period) + C

C l i S


46/52

Cumulative Sum (CUSUM)Technique

Difference between expected orstandard consumption with actualconsumption data points over baseline

period of time.

Follows a fixed trend unless something(energy saving measure, deteriorationin performance..) happens

Helps calculation of savings/losses tilldate after changes


47/52

CUSUM chart -Example

This chats is a plot of variation in standard energy consumption

cusum charts shows what is really happening to the energy performance

July onwards , there is an ongoing decline in performance


48/52

Case Study

Table : 8.3 Month wise production with energy consumption

Month E - Monthly Energy Use( toe * / month)

P - Monthly Production( tonnes / month)

1 340 380

2 340 440

3 380 460

4 380 520

5 300 320

6 400 5207 280 240

8 424 620

9 420 600

10 400 560

11 360 440

12 320 360

13 340 420

14 372 480

15 380 540

16 280 280

17 280 260

18 380 500

During month 9,

heat recovery

system was

installed

Estimate the

energy savings

with heat

recovery systemusing CUSUM

technique?


49/52

Solution

1. Plot the Energy

Production graph for thefirst 9 months

2. Draw the best fit straight line

3. Derive the equation of the line E = 0.4 P +180

4. Calculate the expected energy consumptionbased on the equation

5. Calculate the difference between calculatedand actual energy use

6. Compute CUSUM (refer table in next slide)7. Plot CUSUM graph

8. Estimate savings accumulated from heatrecovery system use

CUSUM

M th E P E E CUSUM


50/52

Month Eact P Ecalc Eact

Ecalc

CUSUM

1 340 380 332 +8 +8

2 340 440 356 -16 -8

3 380 460 364 +16 +8

4 380 520 388 -8 0

5 300 320 308 -8 -8

6 400 520 388 +2 -6

7 280 240 276 +4 -2

8 424 620 428 -4 -6

9 420 600 420 0 -6

10 400 560 404 4 -10

11 360 440 356 +4 -6

12 320 360 324 -4 -10

13 340 420 348 -8 -18

14 372 480 372 0 -18

Energy Production Graph


51/52

Energy Production Graph

0

50

100

150

200

250

300

350

400

450

500

P-Production(t/month)

Energy(toe/month)

Ecalc

=0.4 P+180

Plotting of CUSUM graph


52/52

Plotting of CUSUM graph

-60

-50

-40

-30

-20

-10

0

10

20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

CUSUM

Savings

Documents

1.0 Energy Management Monitoring and Targeting