OPPORTUNITIES FOR BUSINESSES

TO DIRECTLY IMPROVE THEBOTTOM LINE THROUGH

ENERGY EFFICIENCY

3rd May 2010

Kees BrinkmanManaging Director

2/24

INTRODUCTION

• Kees Brinkman:­ Managing­Director­ Mechanical­Engineer­working­in­the­energy­field­for­20+­years­ EMANZ­Accredited­Energy­Auditor

• Enercon is an Energy and Utility Consultancy ­ Based­in­Christchurch­ Six­staff,­all­degreed­engineers

3/24

DURING THIS PRESENTATION…

1. Why focus on reducing energy and carbon emissions?

2. Energy Management

3. Potential benefits of an Energy Audit­ What­are­the­potential­savings?­ Our­experience­with­commercial­and­industrial­clients

4/24

1. Why Focus on Energy and Carbon Emissions?

5/24

REASONS TO FOCUS ON ENERGY?

• The economics are attractive!­ Energy­prices­are­increasing­all­the­time­ Any­reduction­in­energy­cost­directly­impacts­on­the­bottom­line

• Once an Energy Audit is implemented, the cost of the audit is typically paid back in less than 100 days!

6/24

INCREASING ENERGY PRICES

7/24

REDUCING CARBON EMMISSIONS

• Reasons to reduce carbon emissions:­ Emissions­Trading­Scheme­leads­to­increased­costs­ Combats­global­warming

• Ways to significantly reduce carbon emissions:­ Improve­energy­efficiency­(most­common­and­economically­attractive)

­ Switch­to­renewable­fuels­/­suppliers

8/24

ENERGY MANAGEMENT SERVICES AVALIABLE TO IMPROVE THE BOTTOM LINE

• Main Services­ Scoping­and­Feasibility­Studies­ Energy­Audits­ Tariff­Analysis­and­Tendering­ Monitoring­and­Targeting­Systems

9/24

FURTHERMORE…

• Additional Services­ Greenhouse­Gas­Assessments­ Fuel­Switching­Feasibility­Studies­ Ongoing­Energy­Management­ Audit­Implementation­and­Project­Management­ Concept­Design­Reviews­­ Demand­Side­Management­Analysis­ Cogeneration­System­Analysis

10/24

3. Energy Management

0

50

100

150

200

250

300

350

-

50,000­

100,000­

150,000­

200,000­

250,000­

Degr

ee D

ays

Heat

ing

(bas

e 20�C

)

Mon

thly

Con

sum

ptio

n (k

Wh)

Energy Consumption and Degree Days

Gas­consumption Electricity­consumption DDH

11/24

WHERE TO START…

• Energy Audit Scoping Study­ Review­the­consumption­of­all­sites­and­operations­ Benchmark­the­figures­to­determine­the­most­efficient­path­ Identify­sites­in­need­of­Level­2­Energy­Audit

-

50

100

150

200

250

300

350

400

450

500

Site 1 Site 2 Site 3 Site 4 Site 5 Site 6 Site 7 Site 8 Site 9 Site 10 Site 11 Site 12 Site 13 Site 14

Nor

mal

ised

Con

sum

ption

(kW

h/m

2)

Normalised Energy Consumption Across Sites

Coal & Wood Gas LPG Diesel Electricity

12/24

LEVEL 2 ENERGY AUDIT – PROCESS

1. Energy Use Analysis­ Calculate­historic­energy­use­and­review­bills­ Determine­where/when­energy­is­consumed­ Find­target­areas­for­energy­reduction

Lighting25.4%

Downtown Chiller5.6%

Downtown Electric Boilers10.8%

Fans4.8%

Domestic Hot Water7.5%

Miscellanious6.7%

Electric Heating26.3%

Pumping4.6%

Office Equipment8.3%

Electricity Split by Equipment Type

Total Consumption: 3,571,600 kWh/yearTotal Cost: $452,700/ year

13/24

LEVEL 2 ENERGY AUDIT – PROCESS

2. Site Visit­ Kick-off­meeting­ Day-time­inspections,­including­metering­where­appropriate­ Afterhours­inspections­ Closure­meeting

14/24

LEVEL 2 ENERGY AUDIT – PROCESS

3. Technical Analysis­ Perform­an­energy­split­to­determine­where­energy­is­used­ Calculate­savings­from­Energy­Management­Opportunities­ Contact­contractors­to­obtain­capital­costs

EMO Action Capital Cost

Annual savings

Simple Payback

1.1 Reduce­the­site­Capacity­Charges Low $6,700 Immediate

1.4 Improve­Cooling­Tower­controls $9,000 $15,900 0.5­years

1.7 Turn­off­equipment­at­night Education $1,400 Immediate

6.1a Install­lighting­controls­-­T1 $2,500 $4,800 0.5­years

$11,500 $28,800 0.4 yearsTotal – T1

15/24

LEVEL 2 ENERGY AUDIT – PROCESS

4. Draft report­ Client­has­opportunity­to­review

5. Review Meeting

6. Final Report

16/24

THE NEXT STEP…

• Monitoring and Targeting­ Monthly­review­energy­consumption­and­bills­for­each­site­ Compare­consumption­and­cost­against­predicted­ Make­recommendations­towards­changes­needed

• Perform Tariff Reviews­ Ensure­the­most­cost­effective­tariff­is­utilised­

17/24

4. Potential Benefits…

18/24

ENERGY AUDIT POTENTIAL SAVINGS…

•Opportunities; less than one year payback­ Typically­2­–­10%­energy­savings

•Opportunities; between one and three year payback

­ Typically­2­–­10+%­energy­savings

•Opportunities; greater than three years­ Depends­on­the­process­ Are­still­investigated­despite­the­long­payback­ May­have­production­advantages

19/24

CASE STUDY – Large MDF Plant

• Total Identified Savings­ $1.4­million­energy­savings­annually­ 0.5­year­average­simple­payback­ Reduced­annual­carbon­emissions­of­2,000­tonnes­(11%)

20/24

CASE STUDY – Office Building

• Total Identified Savings­ 13.2%­energy­savings­annually­ 2.8­year­average­simple­payback

• Major Opportunities Found­ Improve­AHU­control­and­lighting­efficiency

21/24

CASE STUDY – Canterbury Museum

• Kelvin Nolly­ Could­not­be­here­today

• Total Identified Savings­ $79,000­energy­savings­annually­(36.9%)­ $2,500­implementation­cost

22/24

CASE STUDY – Canterbury Museum

• Opportunities­ Optimising­the­electricity­demand­controls­on­the­BMS­ Reducing­fresh­air­being­supplied­to­spaces­when­not­required­ Switching­off­plant­at­night­ Fixing­the­humidity­controls­for­AHU9

Lighting26%

Miscellaneous4%

Under­Floor­Heating6%

Electric­Heating­(AHUs)42%

Fans­&­Pumps13%

Cooling6%

Humidifiers3%

Canterbury Museum - Energy Split

Consumption:­1,840,000­kWh/yrCost:­$188,000/yr

23/24

CASE STUDY – Canterbury Museum

• Daily Load Profile1.­Under­floor­heating2.­Office­loads3.­Space­heating4.­Base­load5.­Day­lighting

0

50

100

150

200

250

300

350

400

0:00:00

2:00:00

4:00:00

6:00:00

8:00:00

10:00:00

12:00:00

14:00:00

16:00:00

18:00:00

20:00:00

22:00:00

Elec

tric

ity D

eman

d (k

VA)

Canterbury Museum - Average Daily Electricity Demand Profile

Winter­Week­Days Summer­Week­Days Winter­Weekends Summer­Weekends

1

4

2

3

5

24/24

CASE STUDY – Canterbury Museum

• Optimising BMS electricity demand controls­ Saved­$34,000­ BMS­load­shed­HVAC­systems­to­avoid­Control­Period­demand­charges

­ Another­program­was­installed­to­avoid­spot­prices­which­conflicted­causing­large­Network­Charges

­ Solved­by­prioritising­programs­or­avoiding­spot­market

25/24

Any Questions???