Strategic Energy Management in the Midwest - A Process Efficiency Case Study with Xcel Energy
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Strategic Energy Management in the Midwest - A Process Efficiency Case Study with Xcel Energy

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Utilities at the cutting edge of DSM planning are implementing Strategic Energy Management (SEM) programs. By equipping C&I customers with powerful tools that help them strategically manage their ...

Utilities at the cutting edge of DSM planning are implementing Strategic Energy Management (SEM) programs. By equipping C&I customers with powerful tools that help them strategically manage their energy use, utilities realize significant EE savings and deepen their customer relationships.

MEEA, in collaboration with members Xcel Energy and EnerNOC, presented this webinar on SEM best practices and opportunities for Midwest utilities, featuring a case study with Xcel Energy.

On this webinar we discussed:

1. The Value of SEM to Utilities – Understanding how SEM drives increased energy savings from behavioral improvements, more reliable savings from existing capital projects, and deeper customer engagement.

2. Best Practices in SEM Program Design – EnerNOC SEM Practice Lead Chad Gilless will discuss core SEM concepts and present common configurations and options that drive utility program results.

3. Xcel Energy’s Industrial Process Efficiency – Xcel Energy Program Manager Kerry Klemm will present a case study of an award-winning SEM program, the Xcel Energy Process Efficiency program.

Speakers:
Kerry Klemm – Program Manager, Xcel Energy
Kerry Klemm has been involved in energy conservation marketing since the mid 1990s and currently leads Xcel Energy’s Holistic team and manages the Process Efficiency program, which helps manufacturers make smart energy choices that lower their energy use, achieve environmental savings, and improve their bottom line.

Chad Gilless – Practice Lead, Strategic Energy Management, EnerNOC
Chad directs EnerNOC’s efforts to integrate energy into industrial business practices. Based in Portland, OR, Chad has expertise in organizational facilitation and coaching and has over 15 years of experience as a consultant and project manager. He has been with EnerNOC since 2010. He has led numerous programs and projects to deploy plant energy management programs within the industrial sectors, and his efforts have produced more than 68 million kW

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Strategic Energy Management in the Midwest - A Process Efficiency Case Study with Xcel Energy Presentation Transcript

  • 1. MEEA’s Technical Webinar Series:Strategic Energy Management in the Midwest: AProcess Efficiency Case Study with Xcel Energy Presenters: Chad Gilless – EnerNoc Kerry Klemm – Xcel Energy Thursday, November 8th 2012
  • 2. MEEA’s Role in the Midwest• Nonprofit serving 13 Midwest states• 10+ years serving states, energy offices, utilities and communities• Staff of 25 in Chicago• Actions – Designing & Administering Energy Efficiency Programs – Evaluating & Promoting Emerging Technologies – Regional Voice for DOE/EPA & ENERGY STAR – Coordinating Utility Program Efforts – Delivering Training & Workshops – Advancing Energy Efficiency Policy – Promoting Best Practices
  • 3. The EE Story (Future)• Future: Finding a new portfolio – Lighting savings going down – Some program saturation – Need ‘new’ programs • Whole home (HPwES, air sealing, etc) • Systems work (HVAC systems, smart homes, etc) • Behavior programs (changing the customer habit) • Education • Building Energy Codes (adoption, training and compliance) – Challenges • Cost effectiveness (non-energy benefits not counted) • More complex (contractors, systems, etc)
  • 4. C&I Strategic Energy ManagementChad Gilless – Practice Lead, Strategic Energy ManagementMember, US Technical Committee for ISO 50001November 8, 2012 Proprietary and Confidential
  • 5. EnerNOC Utility SolutionsEnerNOC provides a comprehensive suite of demand-side management (DSM) servicesto utilities and grid operators worldwide through our Utility Solutions offering. Program Implementation Consulting Services • Demand Response • Market potential assessments for demand • Turnkey, outsourced C&I DR response, energy efficiency, and distributed • DR program support resources • AutoDR technology and services • End-use forecasts • Integrated resource planning • Energy Efficiency • Load research and analysis • C&I program implementation • Pilot and program design • Program administration • Program implementation support • Building commissioning services • Evaluation, measurement and verification • Energy management software and • Regulatory support analytics • Technology assessments and • Strategic Energy Management (SEM) demonstrations 2
  • 6. The EE story so far… …Universally1 Retrofits Accepted …Gaining2 Operational Wider EE Acceptance3 Behavioral …Emerging EE Game-Changer 3
  • 7. Equipment is an understandable first step Energy Data Equipment Changes Process Improvements Organizational Approach 4
  • 8. Process is the next level Equipment Changes Process Improvements Organizational Approach Organization 5
  • 9. The Organization drives lasting improvement Equipment Changes Process Improvements Energy Data Organizational Approach 6
  • 10. Strategic Energy ManagementThe importance of SEM is that it successfully applies the Behavioral Model for EnergyEfficiency in the Industrial context. Strategy SEM Basics 1) Executive Sponsorship 2) Goal Metrics SEM People 3) Team Energy Data 4) Action Plan Mgmt. Systems Example Utility Program Abbreviations CEI (Continuous Energy Improvement) PE (Process Efficiency) PEM (Practical Energy Management) 7
  • 11. Steps to Implement Utility SEM Programs Including Project Verification 4. Savings Marketing, Recruitment Determination through Channels, and Application Process 3. Program 1. Ramp-Up Management Performance Tracking & 2. Customer Reporting Implemen- tation Energy Implement Strategic Monitor & Management Energy Planning Support Assessment Program 8
  • 12. Total Savings From SEM Customers save from both traditional measures and from SEM – theseimprovements can be measured and acquired Develop facility energy models with statistical and engineering analysis Traditional equipment measures can be backed out of total savings 30%Percent of Energy Wasted Total Savings 20% 10% 0 Years 1 2 3 4 5 6 7 8 9
  • 13. Case Study: Northwest Energy Efficiency AllianceNEEA produces 68 million kWh third party validated saving from Continuous EnergyImprovement (CEI) deployed in Food Processor Initiative. • Number of Customers: ~30 engaged, 14 completed CEI program • Energy Savings: 68,000,000 kWh electricity • Project Budget: $10,000,000 over five years • Third Party Reports Available: http://neea.org/reports/ • Utility Program Tools Created & Available: http://www.energyimprovement.org/index.html • Major activities: • Turned program around through restructure “Chad and his team turned the Food Processor and redesign Initiative around. After inheriting a floundering program, they redesigned it to have clear • Created Playbook of CEI Program Tools customer progress indicators and metrics, • Improved energy savings from 5.6 million restructured the teams to drive results, and added kWh to 68 million kWh energy savings focus to produce reliable results • Produced 14 satisfied customers practicing for NEEA and our funding utilities. They and their CEI: http://vimeo.com/24789397 team are outstanding resources to NEEA as well • Represented program findings and expertise as national leaders in the area of Strategic Energy in ISO 50001 creation Management.” • NEEA Industrial Team nominated and won - John Wallner, Senior Industrial Sector Manager ACEEE Champion of Efficiency in 2011 10
  • 14. Proven Utility Program ApproachesWays that utilities can leverage SEM today. Types of Approaches − SEM training, ~1 day in length − Cohorts of customers, year-long workshop series − One-on-one customer consulting, 1-2 year engagement Start with a Pilot − Start small to prove the concept − Confirm delivery model best suited for the utility − Allows utility to build trust with stakeholders and regulators Sample Utilities with Programs − NEEA / NorthWestern Energy – Montana SEM Cohort − Energy Trust of Oregon – SEM Pathway to ISO 50001 − BC Hydro – SEMP with Transportation and Pulp and Paper sectors − Xcel Energy – Process Efficiency 11
  • 15. Chad GillessPractice Lead, Strategic Energy Management 503.803.7283 cgilless@enernoc.comMember, US Technical Committee ISO 50001 12
  • 16. Xcel EnergyIndustrial Process Efficiency Kerry Klemm Product Portfolio Manager
  • 17. Suite of Industrial OfferingsProcess Efficiency holistic concierge-style industrial program forlarge, engaged customersFull suite of project-specific programs for other industrials Lighting Motors Compressed Air Heating/Cooling Custom And moreNew programs recently launched Turn Key Services Self Direct
  • 18. What is Process Efficiency? Targets large industrial processes Must produce a widget – SIC code Provides additional resources, driven by the magnitude of the conservation opportunities 1 GWh or 4,000 Dth minimum potential Available in Minnesota and Colorado
  • 19. Process Efficiency DeliverablesPromote sustainable energy-efficiency behavior inlarge industrial customers Address business practices, operations, behavior and technical projects Data drives priorities; identifies opportunitiesCustomize support to match customer needsDevelop long-term energymanagement plan and driveimplementation
  • 20. Phased ApproachMulti-year holistic view ofenergy management &projects3 phases Phase 1 Phase 2Customer decides whether to Identification Scopingproceed at each phaseMOUs formalize commitmentCustomized when possible tomatch customer needs &overcome specific barriers Phase 3 Implementation
  • 21. Phased ImplementationPhase 1 – Identify Recognize opportunities, verify potential through EnVinta & high-level walk-through Involves executive level decision makers Top 5 business prioritiesPhase 2 – Scope and Define Expand on opportunities to integrate energy efficiency into business practices Meter, monitor and engineer to clarify technical projects and map energy flow Technical study of opportunities (equipment upgrades, process changes, business practices)
  • 22. Phased ImplementationPhase 3 – Implement Xcel Energy creates custom proposal with bonus structure to support and drive customer’s energy management plan Actual savings calculated through prescriptive and custom rebate programs, roll up to holistic parent Annual & system optimization bonuses
  • 23. Benefits of Process Efficiency 1. Long-term partnership that delivers integrated approach versus project-by-project support 2. Results in sustainable energy-efficiency strategy by looking at both practices and projects 3. All projects under one umbrella simplifies administration and avoids missing rebate opportunities 4. Xcel Energy has flexibility to provide unique resources to match specific customer needs 5. Potential to earn bonuses for exceeding annual goals or improving entire systems 6. Study funding approach ensures data drives projects and future study funding
  • 24. Process Efficiency Historical Achievements – MN Electric kW 10,000 $20,000 Program $/kW 8,000 $15,000kW Saved 6,000 $10,000 4,000 2,000 $5,000 - $- 2007 2008 2009 2010 2011 kW saved $/kW
  • 25. Process Efficiency Historical Achievements – MN Electric kWh 60,000,000 $1.40 50,000,000 $1.20 Program $/kWhkWh Saved 40,000,000 $1.00 $0.80 30,000,000 $0.60 20,000,000 $0.40 10,000,000 $0.20 - $- 2007 2008 2009 2010 2011 est. kWh saved $/kWh
  • 26. Process Efficiency Historial Achievements – MN Gas 2,000,000 $0.60 Program $/therm $0.50Therms Saved 1,500,000 $0.40 1,000,000 $0.30 $0.20 500,000 $0.10 - $- 2007 2008 2009 2010 2011 est. Therms saved $/therm
  • 27. Ideal Customers Significant size Low hanging fruit requirements Open minded already picked (1 MW) forward thinkers SpecificEnergy champion energy goalAvailable Sustainability capital focus funds Upper Rebate is management not only driver Embrace Local support external Committed to decision partnership LT planning maker
  • 28. What’s Next? Joint offering with other area utilities Leveled-off growth New customers Deeper savings from existing customers Modified offering for lower potential customers 1-2 GWh or <10,000 Dth likely savings Lower cost, less on-site, alternate metering Address behavior savings Similarly designed program for commercial customers Opt-out customer risk/opportunity ENERGY STAR® integration; ISO 50001 Completed formal program evaluation 2012
  • 29. Questions & Discussion