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New Frontiers in Industrial Energy
Savings
Behavior, Energy, & Climate ChangeNovember 16 – 19, 2008
Sacramento, CA
Parminder Sandhu, P.Eng. CEMDennis Fitzgerald, P.Eng.
Energizing ideas 2
Agenda
• Policy context and Power Smart• Power Watchers case study• Program next steps
Energizing ideas 3
Energizing ideas 4
Policy Framework
“A Vision for Clean Energy Leadership puts British Columbia at the forefront with aggressive targets for zero net greenhouse gas emissions, new investments in innovation, and an ambitious target to acquire 50 per cent of BC Hydro’s incremental resource needs through conservation by 2020.”
Minister of Energy, Mines, Petroleum Resources
BC Energy Plan, 2007
“Policy Action #21 – New rate structures will provide better price signals to large electricity consumers for conservation and energy efficiency.”
BC Energy Plan, 2003
Energizing ideas 5
Stepped Rates
Rate Design
• Revenue neutral• CBL year 2005• 90/10 split• Aggregation• Retail access• TOU• Adjustments
Energizing ideas 6
Industrial Program Vision
TechnicalProjectsFocus
SustainableEnergy
ManagementProgram(SEMP)
Industrial Business
Integration Strategy
(IBIS)
ISO & Plant Certification
Power Smart I
• Capital Incentives• Enablers
Power Smart II
• Rate Strategies• Capital Incentives• Aggressive Enablers• Education & Training
Power Smart III
• Power Smart II +• Demand response• Customer-based distributed generation
Energizing ideas 7
Sustainable Energy Management Program
Energizing ideas 8
MT&R in Theory
Monitoring, Targeting & Reporting …
• is a method of measuring and maintaining energy performance, and improving efficiency
• combines the principles of energy accounting and statistical process control
Energizing ideas 9
MT&R in Practice
…it puts the right information in the hands of people who can manage energy better and make better decisions
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Making it happen, cont’d!
Energizing ideas 11
Catalyst Operations inBritish Columbia
• Leading North American producer of printing papers
• Significant energy consumer in BC – 4 TWh of electricity– 87% is renewable
Energizing ideas 12
Power Watchers Overview
• Management commitment • Technical opportunities discovery process
• Culture change• Barriers, challenges, and opportunities
• Results & lessons learned
Energizing ideas 13
Power WatchersManagement Commitment
• A Truism: Any successful program must be strongly supported by management at all levels.
• Catalyst started at the top:
– CEO challenged operations to deliver 2% energy reduction (= $5 million per year)
– Each operation developed its own specific plans supported by its Power Watchers team
– All employees encouraged to participate with ideas from their own areas
Energizing ideas 14
An Example of aSuccessful Catalyst Initiative:
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
2002 2003 2004 2005 LV 2006 Est
Fos
sil F
uel T
J's
Port Alberni
Powell River
Crofton
Elk Falls
Energizing ideas 15
Power WatchersTechnical Opportunities & Discovery Process
• Numerous opportunities existed – how to find?– Power Watchers teams
– Energy managers (internal and BC Hydro funded)
– Sharing of best practices between sites
– Prioritization of opportunities– Planning for larger expenditures as part of
annual budget cycle
Energizing ideas 16
Power WatchersCulture Change
• A prevailing attitude that “energy is cheap”needed to be overcome
• Higher marginal pricing provided the new economic incentive
• Electricity conservation given a higher priority on a similar level to safety, production, quality and the environment
Energizing ideas 17
Power WatchersBarriers, Challenges and Opportunities
• Sheer volume of identified opportunities made evaluation and prioritization key
• Many opportunities still exist, but are uneconomic for investment
• Competing priorities for capital required in other business areas
Energizing ideas 18
Power WatchersResults and Lessons Learned
Results:• Year 1 energy reduction of 2% achieved• Year 2 reduction 1.5% due to conservation, additional
amounts due to operational and other factorsLessons:• Careful design of Stepped Rates structure will ensure a
meaningful program with maximum conservation potential• Management commitment is essential• Employee participation at the grassroots level will deliver
largest benefits
Energizing ideas 19
Programmatic Next Steps
• Stepped rates evaluation and rate re-design
• Persistence and measurement issues
• Not prescriptive but customizable!
• New pillar of provincial gov’t initiative for an industrial
energy efficiency program
• Linkage to ISO 50001 and USDOE Plant Certification
Energizing ideas 20
Parminder Sandhu, P.Eng, CEM
(604) 603-6464
Dennis Fitzgerald, [email protected]
