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ARC's Larry O'Brien Integrated Power and Automation Presentation @ ARC Industry Forum 2009


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ARC's Larry O'Brien Integrated Power and Automation Presentation @ ARC Industry Forum 2009 in Orlando, FL.
Reducing Cost through Integrated Power and Automation
The Cost of Power
How Well is Power Managed in Today’s Plants?
The Business Value of Integrated Power &
Enabling Technologies
Knowledge/Cognitive Management
What Does the Future Hold?

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ARC's Larry O'Brien Integrated Power and Automation Presentation @ ARC Industry Forum 2009

  1. 1. Reducing Cost through IntegratedPower and AutomationReducing Cost through IntegratedPower and AutomationLarry O’BrienResearch DirectorARC Advisory
  2. 2. OutlineOutlineThe Cost of PowerHow Well is Power Managed in Today’s Plants?How Well is Power Managed in Today s Plants?The Business Value of Integrated Power &AutomationEnabling TechnologiesKnowledge/Cognitive ManagementWh t D th F t H ld?What Does the Future Hold?2© ARC Advisory Group
  3. 3. The Cost of PowerThe Cost of PowerOil Prices Have Declined, BUT…Power Prices Have Increased and Will Continue To Do SoMY Electricity Bill Hasn’t Gone Down, Has Yours?3© ARC Advisory Group
  4. 4. Industry and Its Role in Power ConsumptionIndustry and Its Role in Power ConsumptionIndustry is Number One Consumer of Total EnergyIndustry is Number Two Consumer of PowerBehind B ildingsBehind BuildingsIndustry Generates a Significant Amount of itsOwn Power4© ARC Advisory Group
  5. 5. Manufacturers and Processors Have TheMost To Gain By Saving Energyy g gy• Produces approximately 30% of U.Sgreenhouse gas emissions• Accounts for more than 35% of U.S.natural gas demand• Energy is key to economic growth in domesticmanufacturingI d tTransportationEnergy Usemanufacturing• Many companies have been unable to passhigher energy costs on to their customers,which has impacted their profit marginsnegativelyIndustry33.4%p27.2%negatively• Having an Efficient Energy ManagementStrategy is Part of the “Triple Bottom Line”:Social, Economic, and EnvironmentalCommercial17.9%Residential21.5%• As an Environmental Compliance Strategy,Improved Energy Management is More CostEffective Than an “End of Pipe” Solution• It’s Sound Business Practice21.5%Source: US Department of Energy5© ARC Advisory Group
  6. 6. How Well is Power Managed in Today’sPlants?How Well is Power Managed in Today’sPlants?Energy Ranks High on the List for Concerns toManufacturers (Even Some of the Raw MaterialsManufacturers (Even Some of the Raw MaterialsCost is Related to Power Generation).6© ARC Advisory Group
  7. 7. Major Energy-Intensive IndustriesSustainability impacts ALL!Major Energy-Intensive IndustriesSustainability impacts ALL!1000Industrial Energy Intensity vs. Energy ConsumptionPetroleum1000tyGDP)Energy-IntensiveIndustriesChemicalsPaperPrimaryMetalsNonmetallicMi lWoodTextiles/Apparel100IntensitdBtu/$MiningFood ProcessingMineralsTobacco/BeveragesFurnitureLeather Machinery and ComputersWoodTransportationFabricated MetalsTextiles/ApparelPlastics/RubberPrinting10EnergyhousandEnergy Consumption (Trillion Btu)Leather Machinery and ComputersElectricalPrintingMiscellaneous110 100 1000 10000(Th7© ARC Advisory GroupEnergy Consumption (Trillion Btu)Source: US Department of Energy
  8. 8. Where Does the Power Go?Where Does the Power Go?Process Heating is Number One Energy ConsumerMachine Drive is Number TwoMachine Drive is Number Two8© ARC Advisory GroupSource: EIA
  9. 9. Power Management Philosophy Behind Manyof Today’s Plants is……Power Management Philosophy Behind Manyof Today’s Plants is……Energy Management Initiative StatusLeaders Program in placeCompetitorsPlan to implementInvestigatingFollowersNo plans underwayDont know0% 25% 50% 75% 100%9© ARC Advisory Group
  10. 10. Energy Efficiency GainsEnergy Efficiency GainsLeaders25% or more20% to 25%15% to 20%FollowersCompetitors 10% to 15%5% to 10%NoneDont know0% 25% 50% 75% 100%Dont knowLeaders make more consistent gains10© ARC Advisory Group
  11. 11. Integration of Power and Automation: BasicPremiseIntegration of Power and Automation: BasicPremiseAutomation and Electrification are Still SeparateIslands of FunctionalityIslands of FunctionalityMotor Control Centers are Also Largely SeparateOperators Have No View Into Power Side, CannotIdentify or Take Advantage of SavingsOpportunitiesFew Suppliers Offer True Capability to IntegrateFew Suppliers Offer True Capability to Integratethe Worlds of Power, Motor Controls/Drives, andAutomation Systems in a Single Environment ThatAllows End User to Make Intelligent DecisionsAllows End User to Make Intelligent DecisionsAbout Energy Management11© ARC Advisory Group
  12. 12. ARC Definition of Integrated Automation andPower ManagementARC Definition of Integrated Automation andPower ManagementggIntegration of various power related systems,devices, equipment, and power related data withdevices, equipment, and power related data withthe process automation systemDriven not just by functionality, but an overallstrategy to implement a collaborativestrategy to implement a collaborativemanufacturing environment with a holisticapproach to power and energy managementEMS, Intelligent Motor Control Centers,Switchgear and Electrical Equipment, IntelligentField Devices, Optimization, Asset Management, p , gInformation is Provided According to ARC Conceptof Information in Context, Right People, RightTime with the Most Effective Visual12© ARC Advisory GroupTime, with the Most Effective VisualRepresentation
  13. 13. Automation & Electrical SystemsAutomation & Electrical SystemsLong tradition of separate roles, separate domains in the plant,separate requirements.Many commonalities in system requirements: high reliabilityand availability, safety, etc.When you look at most people’s depictions of a DCS/PAS, thedon’t take power management into accountdon’t take power management into account.Business Planning & SupplyChain ManagementBusinessProcessTransactionsBusinessWorkProcessesC a a age e tTransactions ProcessesCollaborativeAutomation SystemS95.01DefinitionProductionDefinitionProductionDefinitionProductionCapabilityProductionPlanProductionInformationManufacturingWorkPProductionReal-timeControl &EventsProcessesManagementTransactions Production ManagementBatchContinuous LogicS88StructuresSensors, Actuators, andLogical Devices13© ARC Advisory GroupTTPFFFLFLLFLLLTTPFFFLFLLFLLLTTPFFFLFLLFLLLTTPFFFLFLLFLLLTTPFFFLFLLFLLLLogical Devices
  14. 14. Power & Electrical are Part of ProductionResources in CPSPower & Electrical are Part of ProductionResources in CPSEnterprise/BusinessOperationsInboundSupply Chain& LogisticsCRMOperationsManagementShipping,OutboundR&D,Product/PlantCollaborativeProductionEnvironmenta age eSupply Chain& LogisticsDesign andEngineeringProductionResources14© ARC Advisory GroupProcess Automation Power & Electrical
  15. 15. Collaborative Power And Control SolutionsCollaborative Power And Control Solutions♦C-PACS articulate the convergence of multipledisciplines on a common platformdisciplines on a common platform♦C-PACS specify functions under a singleenvironmentenvironment♦C-PACS promote the value of the commoncommunications infrastructure♦C-PACS recognize the value of standards inautomation♦C-PACS demonstrate the importance of a singlepower, and control platform15© ARC Advisory Group
  16. 16. C-PACS – The Foundation for CMME t i BusinessBusiness Process ComponentsS l Ch i MBusiness Process ComponentsS l Ch i MEnterpriseSystemsBusinessProcessesService-BasedS i B d I f t t ISA 95Supply Chain ManagementProduct Lifecycle ManagementSupply Chain ManagementProduct Lifecycle ManagementW k FlOperations ManagementOperations ManagementArchitecture Service-Based InfrastructureProductionFactoryO tiMfg Ops &Mfg Ops &ProductionProductionFactoryFactoryISA 95ModelsWork FlowProductionProcessesOperationsSystems &ServicesProductionProductionProcessesProcessesProductProductDefinitionDefinitionProductionProductionManagementManagementAutomationAutomationPOWER: Power Meters, Circuit Breakers, TransferSwitches, Intelligent Motor Control Centers,…OPC-UAPACSControl & DeviceNetworks: Real-Time16© ARC Advisory GroupAutomation: Motor Drives, Logic, Motion, HMI,Sensors, Actuators,…C-P
  17. 17. C-PACS ModelDevice ControlNetwork NetworkLogic HMILogic HMIProcessControlCommon Tagging &Single DatabaseCommon DevelopmentPl tf & C fi tiMotionControlPowerMotionNetworksSingle DatabasePlatform & ConfigurationToolsProcessControlPowerM ii ifi l i iMotion17© ARC Advisory GroupDomain Specific Solutions Are Convergingto Improve Performance
  18. 18. Business Value of Integrated PowerManagement and Automation SystemsBusiness Value of Integrated PowerManagement and Automation SystemsIn many cases the potential savings can equal 10 percent oftotal power consumptionThis can equal the entire amount of power a plant purchasesfrom outside electricity generating sourcesYou could be selling power back to the grid!Again, value goes beyond cost of energy – integrated powerand automation gives improved visibility into entire scope ofplant operations that leads to improved early event detection,increased reliabilityincreased reliabilityProcess Industries are particularly heavy power users (seeheating applications in total industrial power consumption) sothe opportunity is quite largeoppo y q gIn many cases this is unexplored territory and there are a lot ofopportunities that immediately present themselvesLarge investments are not required to realize benefits18© ARC Advisory Groupg q
  19. 19. Integrated Power and Automation is Enabledby IEC 61850Integrated Power and Automation is Enabledby IEC 61850IEC 61850 is an Ethernet based solution that hasthe capability to provide tight integration betweenthe capability to provide tight integration betweenAutomation and Power systems.IEC 61850 does for protection and processmeasurement in a substation what fieldbus ismeasurement in a substation, what fieldbus isdoing for process control and multivendor devicestandardization.Enhanced diagnostics.19© ARC Advisory Group
  20. 20. IEC 61850 Brings Power of Digital Networkingto Power ManagementIEC 61850 Brings Power of Digital Networkingto Power Management20© ARC Advisory Group
  21. 21. IEC 61850 Benefits, ChallengesIEC 61850 Benefits, ChallengesBenefits: Challenges:Reduced implementation time• Application Development• IntegrationIEC61850 is relatively new• Will continue to evolveProduct AvailabilityGrowing but remains somewhatReduced Wiring CostsEasier equipment upgrade• Growing, but remains somewhatlimitedIEC61850 compliance does notyet guarantee interoperability• Different interpretations of standardsby developersEasier application migrationto new technologyLess vendor lock-inby developers• Standard and product improvementsand updates are ongoingLearning curve – newtechniques and terminology• BUT long term training reduced dueBetter, more uniformengineering and tools• Standardized naming semantics• e.g. Failure analysis, maintenance,system simulations• BUT, long-term training reduced dueto common data models andcommunication techniquesNetwork design is critical• Ensure networking expertise isincluded on project teams21© ARC Advisory Groupsystem simulations included on project teams
  22. 22. Intelligent Motor Control Centers and VariableSpeed DrivesIntelligent Motor Control Centers and VariableSpeed DrivesMotors consume 64% of all energy consumed inindustry.industry.Most industries can significantly reduce theirenergy costs just by addressing inefficiencies thatreside in their motor loadsreside in their motor loads.Rule of thumb: In a single year, motors canconsume up to 10 times their initial cost.Source: Schneider22© ARC Advisory Group
  23. 23. Intelligent Motor Control Centers and VariableSpeed DrivesIntelligent Motor Control Centers and VariableSpeed DrivesSource: Schneider Electric23© ARC Advisory GroupSource: Schneider Electric
  24. 24. Intelligent Motor Controls Example: AC Drives& Energy Savings in Pipeline ApplicationsIntelligent Motor Controls Example: AC Drives& Energy Savings in Pipeline ApplicationsIn oil and gas pipeline applications it is very common tocontrol the output of variable torque loads such as thosefound in pumps fans and blowers by throttling their input orfound in pumps, fans, and blowers by throttling their input oroutput. This method, however, is inefficientThe application of AC drives to large fans and pumps tocontrol flow by modulating their speed can producey g p psignificant energy savingsThe higher the level of motor operating time and the largerthe variation in load duty cycles, the greater the savingsOne pipeline customer expects to save $5 million annually intransportation expenses and achieve reduced pipelineshutdowns that can cost up to $750,000 per shutdown whenthe pipeline is running at full capacitythe pipeline is running at full capacity24© ARC Advisory Group
  25. 25. Intelligent Field Devices and Plant AssetManagementIntelligent Field Devices and Plant AssetManagementUse of intelligent Coriolis Meters to improvefuel gas measurement (see EmersonExample)Integrating electrical and motor controlcenters into PAM systemscenters into PAM systemsIntegrating machinery health managementAre you making the right measurements? AreAre you making the right measurements? Arethey visible?25© ARC Advisory Group
  26. 26. Optimization, Simulation, Process ModelingOptimization, Simulation, Process ModelingCoordinated control between assets (boilers, turbinesand other equipment)Allocate loading of boilers and turbines for optimumtig poperationsDevelop process models• So that the control strategies “know” each asset, what they’recapable of, and how they interact with each otherFeed steam and electricity use information to the plantenergy system for predictive controlEstablish automated, real-time connections withelectricity providersy p• To include electricity buy and sell factors into the energymanagement modelsAdjust process setpoints to least, but safe, costImplement Tie-Line ControlImplement Tie Line Control• For prioritized load shedding and purchased power optimization• Real-time price schedules26© ARC Advisory GroupSource: Emerson ProcessManagement
  27. 27. Knowledge Management IssuesKnowledge Management IssuesMore information for the operatorpMore information for MaintenanceHow to use this information effectively?Do you have an accurate picture of yourplant’s energy usage?D h th i h tiDo you have the in house expertisenecessary to provide you with a goodbaseline?Work practices must be changed to adapt27© ARC Advisory Group
  28. 28. Future Trends & StrategiesFuture Trends & StrategiesMore products and solutions will becomeavailableavailableIntegrated MAC/MEC approach morecommon on large projectsPenetration of 61850Growth in power auditing andconsultative/lifecycle services for powerconsultative/lifecycle services for powerand automation integrationExpanded worker roles and new workExpanded worker roles and new workpracticesA good opportunity for both end users andli28© ARC Advisory Groupsuppliers
  29. 29. Thank YouThank YouFor more information, contact the author atlobrien@arcweb.comor visit our web pages at www arcweb com29© ARC Advisory Groupor visit our web pages at