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Agenda Part One
Strategic Energy Management
Management System Approach SEM definition
SEM Pyramid
Alignment with Sixth Power Plan
Threshold of a System
2
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Management System Approach
A management systemis the framework
of processes and procedures used to
ensure that an organization can fulfill alltasks required to achieve its objectives.
Modern Management Systems are basedon Continuous Improvement.(PDCA)
Management System Standardsrequireexternal audit for registration. (ISO)
3
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1950s 2000s
FOCUS ON QUALITYDEMING
THANK ME
LATER.
INDUSTRY REFINEMENT ENERGY
1980s 1990s
Management Systems First 60 Years
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StrategicEnergy Management
WHAT IS STRATEGIC
ENERGY MANAGEMENT
A systemof practices
that creates reliable andpersistent energy
savings.
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StrategicEnergy Management
Employee
Awareness
CapitalProjects
Technical
Training
PlantAssessments
PerformanceIndicators
Management
Systemsfor Energy
StrategicEnergyManagement
Programs
Benchmarking Analysis Software
Controls Metering
System
Standards
ISO 50001
Energy
ManagementElements
US DOE
Superior EnergyPerformance
CEIIEI
HPEM
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Alignment to the Plan
The Sixth Power Plan identifies three
levels of plant energy management:
Best: Integrated Energy Management
Better: Energy Project Management
Good: Plant Energy Management
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STRATEGIC ENERGY MANAGEMENT:
WHAT IS THE MINIMUM?
A Threshold of a System
Executive Sponsorship
Goal Setting
Tracking System
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STRATEGIC ENERGY MANAGEMENT:
WHAT IS THE MINIMUM?
Executive Sponsorship
Alignment w/ Objectives Resources
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STRATEGIC ENERGY MANAGEMENT:
WHAT IS THE MINIMUM?
Executive Sponsorship
Goal Setting
Executive Sponsorship
Energy team
Energy policy Tools
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STRATEGIC ENERGY MANAGEMENT:
WHAT IS THE MINIMUM?
Executive Sponsorship
Goal Setting
Executive Sponsorship
Goal Setting
Tracking System
Assessment Projects Measure Report
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STRATEGIC ENERGY MANAGEMENT:
Threshold of the System?
Executive Sponsorship
Goal Setting
Tracking System
System Right-Sized
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Agenda Part Two
NEEAs CEI
Sector Vision Mission GoalsPre Initiative Situation
CEI Offering
Maturity model
CEI Project Pipeline
Measuring Energy Savings
Key Learnings
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Vision and Mission
NEEAsVision
Mobilize the Northwest tobecome increasingly energyefficient for a sustainable future
Energy Efficiency is acornerstone of a vibrant,sustainable Northwest
NEEAsMission
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Industrial Sector
Accelerate adoption of industrial andagricultural strategic energy managementby addressing 50% of the regionselectrical load by 2014.
MissionEmbed strategic energy management
as a common industrial and agriculturalbusiness practice in the Northwest.
Goal
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Energy Management 2004-2005
Ad hoc piecemeal savings
effortsCoordinated holistic energy
managementIslands of uncoordinated
activityLeverage Industry Associations as
reference partners
Lone rangers doing goodthings
Executive sponsorship defining theorganizations commitment
Point solutions e.g. fix that
leak
Organizational transformation
addresses organization, people,systems, and measurement
Energy is something we use Energy is a resource we manage
Actual/Perceived State Desired State
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30 Years of Energy Efficiency Measures
Big Goals:25% reduction in energy intensity in 10 years
Yr 1 Yr 2 Yr 3 . . . . . . .
Increasing energy cost
and threat of carbon
legislation drive actionStand alone projects
snap-back
A cycle of continuous
investment without
continuous improvement
Consumers energy cost
Energy savings from
isolated programs
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NEEAs CEI
A holistic energy management system that leveragesthe natural law of process management to:
understand,
control, and
improve energy use.
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Market Transformation Theory
Our working hypothesis Implementation of CEI leads to
persistent measureable
energy savings
Testing the hypothesis
Deploy CEI through field advisors to a targetedindustry
Work with companies to raise the level ofimplementation maturity
Measure energy savings
Independently validate results
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CEI Deployment 2006-2010
Engaged Northwest FoodProcessors Association toleverage membershipawareness
32 facilities committedto CEI
25 facilitiesengaged in CEI
15 facilities selfsustaining CEI 2010
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Level 5 Self Sustaining Firm is maintaining NEEAs CEI independently of NEEA
Level 4 Practicing Firm is implementing plans, measurements, and is generating savings
Level 3 Committed Firm has a policy & plans, some dedicated energy management resources
Level 2 Engaged Management staff is participating in energy assessment process
Level 1 Aware/Receptive/Interested Firm is aware, key 1/1s explain the program,
management is interested
Levels of CEI Implementation Maturity
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NEEAs CEI Energy Savings
Establish baseline energyusage Initiate intervention
Observe change in energyusage
kWh
Baseline (Expected)
Behavior/O&M
(Estimated Top Down)
Physical System Measures& Engineering Calculations(Bottom Up)
Total Implemented (Actual)
NowBaseline CEI Starts
Bottom-up analysis captures savings from energy projectsTop-down analysis captures savings from all sources
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Energy Savings 2009 Results
Independent validation evaluated 18 sites in 2009 andfound:
Strong evidence that CEI is working in Food
Processing Sector All 18 facilities have made O&M changes as a
result of CEI
11 of 18 have implemented new capital projectssupporting CEI
They expect 15 of the sites to reach self
sustaining Level 5 in 2010 Implementation of CEI has resulted
in roughly 2% savings per year
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NEEAs CEI Savings to Date
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Key Learnings
Senior management commitment is vital
Organizations that demonstrate an existing
learning culture fare best
Industry associations/reference partnersaccelerate top management commitment andparticipation
Successful implementation appears to be tied
to internal and external champions Business conditions provide critical context for
plant readiness
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Industrial Energy Management 2010
Coordinated holistic energy management Success in FoodProcessing
Leverage Industry Associations asreference partners
Speeds industryacceptance of energy
management
Executive sponsorship defining theorganizations commitment
Senior management
commitment is vital
Transformation of organization, people,
systems, measurement
Success in Food
Processing
Energy is a resource we manage Success in FoodProcessing
Desired State Actual State
NEEA 2011 S i SEM
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NEEAs 2011 Steps in SEM
Continue to expand supply base
CEI version 2.0 release
ISO 50001 release
NW SEP Demonstration pilot wrap up
Montana Small Manufacturers cohort
C
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7 Habits of Highly Efficient Companies
1. Efficiency is a core strategy2. Leadership & organizational support is real and
sustained
3. The company has SMART energy efficiency goals4. The strategy relies on a robust tracking and
measurement system
5. The organization puts substantial resources intoefficiency6. The energy efficiency strategy shows demonstrated
results
7. The company effectively communicates efficiencyresults
Source: 2009 Pew Center on Global Climate Change28