Managing Energy Data from End to End
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In our recent webcast hosted with Smart Energy Decisions, we sat down with Fortune 500 manufacturer Arconic's energy sourcing manager, Steve Frank, to hear how their team built a single source of truth for energy data from supply chain to end use. Check out the presentation to learn how Arconic centralized utility invoice data, whole building interval data, and real-time submeter data across 157 global locations to manage energy data from end to end. You can also watch the replay here: http://ow.ly/1eee30lUiOm
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Managing Energy Data from End to End
- 1. Managing Energy Data from End to End Urjanet Smart Energy Decisions Arconic webinar featuring
- 2. Logistics • Enable pop-ups within your browser • Turn on your system’s sound to hear the streaming presentation • No sound? Press your F5 key to refresh your browser. • Questions? Submit them to the presenters at anytime on the console • Technical problems? Click “Help” or submit a question for assistance
- 3. Smart Energy Decisions Mission Help commercial and industrial customers improve their profitability and reduce their carbon emissions by adopting best practices in energy efficiency and renewable energy sourcing.
- 4. • Email & News • Research • Webinars • Website & Community • Networking • Live Events www.smartenergydecisions.com
- 5. Steve Frank Energy Sourcing Manager Arconic John Failla Founder & Editorial Director Smart Energy Decisions (Moderator) Tim Porter Director of OEM & Partnerships Urjanet Presenters
- 6. Utility Bill Data Whole building interval meter data Real-time submeter data Let’s start with the basics
- 7. Engineering, Maintenance, Production Energy Procurement Sustainability & Environmental Management Corporate Communications Stakeholders have different needs
- 8. Utility Bill Data Month-over-month consumption, cost, demand, tariff, and charge information Who needs this data? Energy Procurement Sustainability & Environmental Management Corporate Communications Building block 1
- 9. Whole Building Interval Meter Data Granular usage information recorded in set intervals, typically 15 minutes to 1 hour, and reported next day Who needs this data? Engineering, Maintenance, Production Energy Procurement Building block 2
- 10. Real-time Submeter Data Extremely granular usage information recorded in set intervals, typically in minutes or seconds, and reported in real time Who needs this data? Engineering, Maintenance, Production Building block 3
- 11. Improves energy transparency Automates recurring tasks Enhances collaboration Centralized data is key…
- 12. …but it can be an overwhelming effort
- 13. Here’s how Arconic managed to do the impossible Case study
- 14. A Fortune 500 global company Company Overview ▪ $12.4B Revenue* ▪ 41,500 Employees ▪ 157 Global Locations ▪ 25 Countries Engineered Products and Solutions Global Rolled Products Transportation and Construction Solutions *2016 Revenue
- 15. One team, global responsibilities Energy Services • Site strategies • Demand management • Energy procurement • Data management • Reporting & tracking
- 16. The goal To create a single “source of truth” for all energy data to enable organizational alignment, optimization, and cost savings
- 18. …and implements a single source of truth Suppliers Plants & Locations Pull Pay Corporate Energy Services Corporate Procurement Corporate Sustainability Arconic Business Units Invoices Forecast Production Volume Actual Production Volume Real-time Meter Data Utility Meter Data Forecast Spend Actual Spend GHG Reporting Energy Intensity Energy Volume Energy Intensity Energy Volume Contracts / Site Strategies / Market Intelligence / Rate Structure Analysis / Invoice Verification
- 19. Enterprise-level energy management Managing all aspects of energy in one system enables optimization • Efficiency & Demand – daily energy management & performance tracking • Supply Chain – Rate structure & tariff optimization • Sustainability – GHG reporting & monitoring • Continuous Improvement – data trends & benchmarking
- 20. A unified energy management system Supply Efficiency & Demand Sustainability
- 21. The results speak for themselves Through the use of Strata, Arconic avoided a natural gas overrun penalty of nearly $13,000 for just one facility. With whole building interval data from Urjanet fed into Strata, Arconic can proactively plan for spikes in demand and continue driving energy savings.
- 22. Questions & answers Steve Frank Energy Sourcing Manager Arconic John Failla Founder & Editorial Director Smart Energy Decisions (Moderator) Tim Porter Director of OEM & Partnerships Urjanet
- 23. Managing Energy Data from End to End Thank you for joining! Have more questions we can answer? Speak with a data expert today > webinar
Editor's Notes
- Tim Porter: These are the 3 fundamental building blocks of data you need for energy management
- Tim Porter: Engineering: Requires real-time metering for energy management Procurement: Requires site-level information to administer utility contracts Sustainability: Requires energy consumption for reporting & monitoring Communications: Requires aggregated data for benchmarking & portfolio management
- Tim Porter: Common use cases: Reporting monthly or annual energy performance Benchmarking monthly or annual energy performance across a portfolio or over a period of time Energy procurement Bill payment
- Tim Porter: Common use cases: Anomaly detection Demand-side energy management Bill validation and reconciliation Tariff analysis Calibration of whole building vs. submeter Site selection and evaluation of renewables and storage
- Tim Porter: Common use cases: Anomaly detection Demand-side energy management Project planning Savings realization
- Tim Porter: Centralized data is key to achieving organizational alignment and cost savings Improving energy transparency then enables more informed decision-making across departments and more efficient cost savings Automates recurring tasks, leading to higher operational efficiency Enhances collaboration between departments while everyone is working with the same level of information
- Tim Porter: Massive volumes of data Disparate data sources Varied bill data formats Regional differences by utility providers New acquisitions Legacy locations Regulatory environments Energy markets Multiple business units
- Steve Frank: There are many challenges with managing a global portfolio. Our internal customers are diverse and we have to be responsive to a number of aspects: New acquisitions – we must maintain readiness to add new facilities and provide consistent, well defined, energy services Legacy locations – the value of energy services must be demonstrated and communicated to business stakeholders to justify corporate overhead Regulatory environments – as corporate energy experts we must navigate different regulatory environments Energy markets – energy pricing must be anticipated and accounted for in diverse regions Multiple business units – we must manage energy efficiency & demand for many different production processes & facilities Arconic has a centralized Energy Services group consisting of 5 people with both corporate and facility facing responsibilities. Among our core responsibilities is ensuring due diligence in the following areas: Site strategies – we develop and update site-level electrical and natural gas supply strategies for each Arconic location Efficiency & demand management – we facilitate internal energy audits, assessments, & treasure hunts to identify opportunity Energy procurement – we execute financial transactions for energy commodities globally Data management – we collect and manage energy invoice data and contracts globally Reporting & tracking – we provide the energy data for multiple corporate and site-level functions
- Steve Frank: We were seeking ways to get whole-building interval meter data, because…. Referred to Urjanet by energy consultant Chose Urjanet based on industry experience, overall fit, and cost-effectiveness Smooth rollout and continued success led to us approaching Urjanet about aggregating utility bill data in addition to interval meter data, because our previous solution lacked…..
- Steve Frank: This is a high level view of the energy data flow within Arconic. We are in the process of consolidating all of our core energy information in a SAAS (software as a service) platform. Over the last 10 years, Arconic has developed a mature in-house application for managing energy invoices and procurement functions. We partnering with a commercial SAAS platform to combine our in-house application with traditional efficiency & demand analytics. This will give us and the whole corporation “one source of truth” for energy data. It will evolve our energy workspace at Arconic and consolidate many tasks for stakeholders in the company. ----Speak to the figure on the slide ---- Corporate Energy Services – as discussed earlier, we administer a number of core energy management functions for Arconic Corporate Procurement – energy is managed as a commodity similar to other commodities such as strategic raw materials Financial planning and market intelligence are applied to business plans Transactional information is executed, tracked, and reported Corporate Sustainability – all of the traditional metrics for GHG reporting are managed and the new system will automate much of the reporting Arconic Business Units – energy data is used for a diverse set of stakeholders in this category from legal & treasury to site energy managers Plants & Locations – near-real time metering, interval data, and analytics will be incorporated into our new SAAS solution Many Arconic locations have existing local metering systems or data historians The new system will tie in local metering networks at plants into Strata Benefits will include: daily energy management capabilities, key performance indicator tracking, and benchmarking locations & business units with aggregated data Suppliers & Pull Pay – invoices are managed automatically and financial transactions are approved through a pull pay system with Oracle
- A unified energy management system consolidates the shared data set. It can automate many tasks and enhance collaboration in an organization. The green parts of the figure above represent current activities that each category in Arconic performs. The blue parts of the diagram show examples of enhanced activity that our new platform will enable. This total diagram represents total energy management.
- Steve Frank: Cost avoidance due to natural gas overruns: Situation: An Arconic facility is in a region of the country that can experience long stretches of cold weather and our gas usage is directly linked to this. The facility has a Maximum Daily Quantity (MDQ) contract in place with the utility that limits our receipt of gas to 1,500 MCF of gas per day. If we exceed this amount, the contract states we are to be charged an overrun fee and the MDQ is adjusted to match our new high. What happened: Before the month started, the Global Energy Services team set up usage alerts using the Strata tool. The alerts were set to notify us if we went over or near our MDQ of 1,500. The plant was notified on January 5th when we received an alert we had exceeded our MDQ. The overage was related to cold weather that had settled into the region. The plant reviewed their forecast to see if it was likely to continue or possibly go higher. Communication lines between the Energy Team and the plant remained open throughout the month as we monitored the situation. The Energy Team also reached out to the utility to discuss the overrun and review our options. Result: By being proactive and monitoring our gas usage through the Strata tool, the lines of communication between us and the plant remained open throughout the month. In the past, we would have not known about this overrun until we received an invoice after the month ended and it was too late to negotiate with the utility. The notifications from the Strata system allowed us to become aware of the overrun much earlier. This enabled us to reach out the utility proactively and discuss our situation. Because of this, we were able to avoid the overrun penalty of just under $13,000 for the facility. 2) Management of facility demand charges: Access to interval data through Urjanet and automatically fed into Strata allows us to be aware when spikes occur and manage these going forward.