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Reducing Cost Integrated Power Automation


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Reducing Cost Integrated Power Automation

  1. 1. Reducing Cost through Integrated Power and Automation Larry O’Brien Research Director ARC Advisory Group
  2. 2. Outline The Cost of Power How Well is Power Managed in Today’s Plants? Today s The Business Value of Integrated Power & Automation Enabling Technologies Knowledge/Cognitive Management What D Wh t Does th Future Hold? the F t H ld? 2 © ARC Advisory Group
  3. 3. The Cost of Power Oil Prices Have Declined, BUT… Power Prices Have Increased and Will Continue To Do So MY Electricity Bill Hasn’t Gone Down, Has Yours? 3 © ARC Advisory Group
  4. 4. Industry and Its Role in Power Consumption Industry is Number One Consumer of Total Energy Industry is Number Two Consumer of Power Behind B ildings Buildings Industry Generates a Significant Amount of its Own Power 4 © ARC Advisory Group
  5. 5. Manufacturers and Processors Have TheMost To Gain By Saving Energy y g gy• Produces approximately 30% of U.S greenhouse gas emissions• Accounts for more than 35% of U.S. natural gas demand Energy Use• Energy is key to economic growth in domestic manufacturing Transportation p Industry I d t 27.2%• Many companies have been unable to pass 33.4% higher energy costs on to their customers, which has impacted their profit margins negatively• Having an Efficient Energy Management Strategy is Part of the “Triple Bottom Line”: Commercial Social, Economic, and Environmental Residential 17.9% 21.5%• As an Environmental Compliance Strategy, Source: US Department of Energy Improved Energy Management is More Cost Effective Than an “End of Pipe” Solution• It’s Sound Business Practice 5 © ARC Advisory Group
  6. 6. How Well is Power Managed in Today’sPlants? Energy Ranks High on the List for Concerns to Manufacturers (Even Some of the Raw Materials Cost is Related to Power Generation). 6 © ARC Advisory Group
  7. 7. Major Energy-Intensive IndustriesSustainability impacts ALL! Industrial Energy Intensity vs. Energy Consumption 1000 Energy-Intensive housand Btu/$ GDP) Industries Petroleum ty Energy Intensit 100 Primary Paper Mining Metals Chemicals Nonmetallic Textiles/Apparel Wood d Minerals Mi l 10 Tobacco/Beverages Food Processing Plastics/ Fabricated Metals Furniture Rubber Transportation Printing (Th Leather Machinery and Computers Miscellaneous Electrical 1 10 100 1000 10000 Energy Consumption (Trillion Btu) Source: US Department of Energy 7 © ARC Advisory Group
  8. 8. Where Does the Power Go? Process Heating is Number One Energy Consumer Machine Drive is Number Two Source: EIA 8 © ARC Advisory Group
  9. 9. Power Management Philosophy Behind Manyof Today’s Plants is…… Energy Management Initiative Status Leaders Program in place Plan to implement Competitors Investigating No plans underway Followers Dont know 0% 25% 50% 75% 100% 9 © ARC Advisory Group
  10. 10. Energy Efficiency Gains 25% or more Leaders 20% to 25% 15% to 20% Competitors 10% to 15% 5% to 10% None Followers Dont know 0% 25% 50% 75% 100% Leaders make more consistent gains 10 © ARC Advisory Group
  11. 11. Integration of Power and Automation: BasicPremise Automation and Electrification are Still Separate Islands of Functionality Motor Control Centers are Also Largely Separate Operators Have No View Into Power Side, Cannot Identify or Take Advantage of Savings Opportunities Few Suppliers Offer True Capability to Integrate the Worlds of Power, Motor Controls/Drives, and Automation Systems in a Single Environment That Allows End User to Make Intelligent Decisions About Energy Management 11 © ARC Advisory Group
  12. 12. ARC Definition of Integrated Automation andPower Management g Integration of various power related systems, devices, equipment, and power related data with the process automation system Driven not just by functionality, but an overall strategy to implement a collaborative manufacturing environment with a holistic approach to power and energy management EMS, Intelligent Motor Control Centers, Switchgear and Electrical Equipment, Intelligent Field Devices, Optimization, Asset Management , p , g Information is Provided According to ARC Concept of Information in Context, Right People, Right Time, Time with the Most Effective Visual Representation 12 © ARC Advisory Group
  13. 13. Automation & Electrical Systems Long tradition of separate roles, separate domains in the plant, separate requirements. Many commonalities in system requirements: high reliability and availability, safety, etc. When you look at most people’s depictions of a DCS/PAS, the don’t take power management into account. account Business Business Planning & Supply Business Process Work Transactions C a Chain Management a age e t Processes Production Production Production Production S95.01 Definition Capability Plan Information Definition Collaborative Manufacturing Production Automation System Work Management Processes P Transactions Production Management S88 Structures Real-time Continuous Batch Logic Control & Events Sensors, Actuators, and L Logical Devices L F F F L L P T T F L F L 13 © ARC Advisory Group
  14. 14. Power & Electrical are Part of ProductionResources in CPS Enterprise/Business Operations Inbound Supply Chain CRM & Logistics Operations Management a age e Collaborative Production R&D, Shipping, Product/Plant Environment Outbound Design and Supply Chain Production Engineering & Logistics Resources Process Automation Power & Electrical 14 © ARC Advisory Group
  15. 15. Collaborative Power And Control Solutions♦ C-PACS articulate the convergence of multiple disciplines on a common platform♦ C-PACS specify functions under a single environment♦ C-PACS promote the value of the common communications infrastructure♦ C-PACS recognize the value of standards in automation♦ C-PACS demonstrate the importance of a single power, and control platform 15 © ARC Advisory Group
  16. 16. C-PACS – The Foundation for CMM Business Process Components Enterprise E t i Supply Ch i M S l Chain Management Business Systems Processes Product Lifecycle ManagementService-Based ISA 95 Work Fl W k Flow Service-Based I f t t S i B d Infrastructure Architecture Models Operations Management Factory Mfg Ops & Factory Operations O ti Production Production Automation Systems & Processes Processes Services Product Production Definition Management Control & Device OPC-UA Networks: Real-Time POWER: Power Meters, Circuit Breakers, Transfer PACS Switches, Intelligent Motor Control Centers,… C-P Automation: Motor Drives, Logic, Motion, HMI, Sensors, Actuators,… 16 © ARC Advisory Group
  17. 17. C-PACS Model Device Control Network Network Logic HMI Logic Process HMI Control Motion Power Common Development Common Tagging & Platform & C fi Pl tf Configuration ti Single Database Tools Process Motion Power Control Networks Motion M i Domain Specific Solutions Are Converging i ifi l i i to Improve Performance 17 © ARC Advisory Group
  18. 18. Business Value of Integrated PowerManagement and Automation Systems In many cases the potential savings can equal 10 percent of total power consumption This can equal the entire amount of power a plant purchases from outside electricity generating sources You could be selling power back to the grid! Again, value goes beyond cost of energy – integrated power and automation gives improved visibility into entire scope of plant operations that leads to improved early event detection, increased reliability Process Industries are particularly heavy power users (see heating applications in total industrial power consumption) so the opportunity is quite large oppo y q g In many cases this is unexplored territory and there are a lot of opportunities that immediately present themselves Large investments are not required to realize benefits g q 18 © ARC Advisory Group
  19. 19. Integrated Power and Automation is Enabledby IEC 61850 IEC 61850 is an Ethernet based solution that has the capability to provide tight integration between Automation and Power systems. IEC 61850 does for protection and process measurement in a substation what fieldbus is substation, doing for process control and multivendor device standardization. Enhanced diagnostics. 19 © ARC Advisory Group
  20. 20. IEC 61850 Brings Power of Digital Networkingto Power Management 20 © ARC Advisory Group
  21. 21. IEC 61850 Benefits, ChallengesBenefits: Challenges: Reduced implementation time IEC61850 is relatively new • Application Development • Will continue to evolve • Integration Product Availability • Growing but remains somewhat Growing, Reduced Wiring Costs limited IEC61850 compliance does not Easier equipment upgrade yet guarantee interoperability • Different interpretations of standards by developers Easier application migration • Standard and product improvements to new technology and updates are ongoing Learning curve – new Less vendor lock-in techniques and terminology • BUT long term training reduced due BUT, long-term to common data models and Better, more uniform communication techniques engineering and tools • Standardized naming semantics Network design is critical • e.g. Failure analysis, maintenance, • Ensure networking expertise is system simulations included on project teams 21 © ARC Advisory Group
  22. 22. Intelligent Motor Control Centers and VariableSpeed Drives Motors consume 64% of all energy consumed in industry. Most industries can significantly reduce their energy costs just by addressing inefficiencies that reside in their motor loads. loads Rule of thumb: In a single year, motors can consume up to 10 times their initial cost. Source: Schneider 22 © ARC Advisory Group
  23. 23. Intelligent Motor Control Centers and VariableSpeed Drives Source: Schneider Electric 23 © ARC Advisory Group
  24. 24. Intelligent Motor Controls Example: AC Drives& Energy Savings in Pipeline Applications In oil and gas pipeline applications it is very common to control the output of variable torque loads such as those found in pumps fans and blowers by throttling their input or pumps, fans, output. This method, however, is inefficient The application of AC drives to large fans and pumps to control flow by modulating their speed can p y g p produce significant energy savings The higher the level of motor operating time and the larger the variation in load duty cycles, the greater the savings One pipeline customer expects to save $5 million annually in transportation expenses and achieve reduced pipeline shutdowns that can cost up to $750,000 per shutdown when the pipeline is running at full capacity 24 © ARC Advisory Group
  25. 25. Intelligent Field Devices and Plant AssetManagement Use of intelligent Coriolis Meters to improve fuel gas measurement (see Emerson Example) Integrating electrical and motor control centers into PAM systems Integrating machinery health management Are you making the right measurements? Are they visible? 25 © ARC Advisory Group
  26. 26. Optimization, Simulation, Process Modeling Coordinated control between assets (boilers, turbines and other equipment) Allocate loading of boilers and turbines for optimum g p operations ti Develop process models • So that the control strategies “know” each asset, what they’re capable of, and how they interact with each other Feed steam and electricity use information to the plant energy system for predictive control Establish automated, real-time connections with electricity providers yp • To include electricity buy and sell factors into the energy management models Adjust process setpoints to least, but safe, cost Implement Tie Line Control Tie-Line • For prioritized load shedding and purchased power optimization • Real-time price schedules Source: Emerson Process Management 26 © ARC Advisory Group
  27. 27. Knowledge Management Issues More information for the operator p More information for Maintenance How to use this information effectively? Do you have an accurate picture of your plant’s energy usage? Do D you h have th i h the in house expertise ti necessary to provide you with a good baseline? Work practices must be changed to adapt 27 © ARC Advisory Group
  28. 28. Future Trends & Strategies More products and solutions will become available Integrated MAC/MEC approach more common on large projects Penetration of 61850 Growth in power auditing and consultative/lifecycle services for power and automation integration Expanded worker roles and new work practices A good opportunity for both end users and suppliers li 28 © ARC Advisory Group
  29. 29. Thank YouFor more information, contact the author at lobrien@arcweb.comor visit our web pages at www arcweb com 29 © ARC Advisory Group