Downloaded 21 times
Uploaded byPlain Green Conference and Marketplace
Mike Twedt on Green Energy Engineering
Michael Twedt presented on various energy efficiency programs and incentives for facilities projects. He discussed the Rural Energy for America Program (REAP) which provides grants and loans for renewable energy and efficiency upgrades. Energy audits are used to identify cost-effective measures and quantify potential savings. Building energy modeling software can evaluate different system alternatives. Tax incentives like the commercial building tax deduction can offset costs of high-efficiency upgrades. Combining multiple efficiency measures provides the best opportunity for energy and cost savings.
More Related Content
Similar to Mike Twedt on Green Energy Engineering
More from Plain Green Conference and Marketplace
Mike Twedt on Green Energy Engineering
- 1. Michael Twedt, PE TaxIncentives, Grants and Low Interest Loan Programs for Energy Efficiency and Sustainable Facility Projects Presentation for the Plain Green Energy Efficiency Workshop April 17, 2009
- 2. Speaker Introduction Michael Twedt,P.E., C.E.M. Mechanical Engineer, Energy Analysis and Efficiency Focus Director, Wind Application Center, SDSU WAC.sdwind.org Director, Energy Analysis Lab, SDSU Co-PI, CBRD & Biomass/Bioenergy Research Email: Michael.Twedt@SDSTATE.EDU Phone: 605.688.4303
- 3. Energy Saving Benefits Overview Reduction in reliance on foreign energy sources Reduction in energy use = reduction in greenhouse gas Energy cost savings reduce facility expenses Promotes good practices; use less, save more Energy Efficiency Grant and/or Tax Deduction
- 4. Energy Issues Energy issuesin South Dakota • An extreme climate leads to extreme heating and cooling requirements • Limited and fixed budgets for most facilities • Rising energy costs • Limited information available for making better choices Addressing these issues • Focus on life cycle costs instead of solely on first costs • Purchase better materials, equipment, systems that will save money and energy
- 5. Bio & RenewableEnergy Benefits Overview Rising Energy Costs Global Warming / Pollution Dependency on Foreign Energy What can we do? Decrease our energy use (increase efficiency) Increase ‘home-grown’ energy Increase cost-effective, renewable energy
- 7. How to ImplementEnergy Efficiency Utilize savings to pay for investments • Perform simple payback or life-cycle cost analysis • Consider: • Energy cost savings • Productivity/labor cost savings • Resource cost savings Utilize incentives to pay for investments • REAP/9007 Grants & Loans • Commercial building tax deductions (EPACT 2005) • Business Energy Investment Tax Credit (ITC)
- 8. Energy Grants –REAP/9007 Rural Energy for America Program (REAP) Section 9007: • Designed to assist farmers, ranchers and rural small businesses with energy projects • Rural SD = not Sioux Falls or Rapid City • This program provides grants and guaranteed loans for renewable energy systems and energy efficiency improvement projects
- 9. Energy Grants –REAP/9007 Rural Energy for America Program (REAP) Section 9007: • Energy Efficiency Improvements • Improvements to a facility or process that reduces energy consumption. Typically projects must show a 20% savings in energy audit to receive funding. • Renewable Energy - energy from: • wind, solar, biomass, or geothermal source, hydro or • hydrogen derived from biomass or water using one of the above energy sources
- 10. Energy Grants –REAP/9007 Rural Energy for America Program (REAP) Section 9007: • Energy Efficiency Upgrades • Drying Systems • Motor Systems • Heating/Refrigeration • Renewable Energy Projects • Wind • Solar • Geothermal • 25% Eligible Cost Grant ($250K-$500K max) • 50% Eligible Cost Guaranteed Loan • ($25 million max)
- 11. Resources – REAP/9007 Contactyou local USDA Rural Development Office More Energy Efficiency Upgrades • Lighting • Refrigeration/Freezer Systems • Insulation (addition) • Automated Controls • Windows, Doors
- 12. Energy Grants –REAP/9007 Rural Energy for America Program (REAP) Section 9007: • Competitive grant application • Applicants are scored on a variety of parameters • Energy replaced, generated or saved • 20% minimum, 35%+ excellent • Simple payback period (~ 11 yr max) • Technical merit • Environmental benefits • Grant only or Loan/Grant combination
- 13. Energy Grants –REAP/9007 3rd Party Verification – Energy Efficiency: • Requires energy audit or energy assessment • $50,000 project cost (over or under) • Documents the energy savings • Documents the cost savings • Establishes the return on investment • Requires technical report and/or evaluation • $200,000 project cost (3rd Party if over) • Documents and evaluates the technical merit
- 14. Energy Grants –REAP/9007 3rd Party Verification – Renewable Energy: • Requires business-level feasibility study • If over $200,000 total project cost • Documents and evaluates the feasibility • Documents the energy generation • Documents the cost savings • Establishes the return on investment • Requires technical report and/or evaluation • $200,000 project cost (over or under) • Documents and evaluates the technical feasibility
- 15. Energy Grants –REAP/9007 3rd Party Verification – Renewable Energy: • Requires business-level feasibility study • If over $200,000 total project cost • Documents and evaluates the feasibility • Documents the energy generation • Documents the cost savings • Establishes the return on investment • Requires technical report and/or evaluation • $200,000 project cost (over or under) • Documents and evaluates the technical feasibility
- 16. Energy Audit Objective The overall goal of an energy audit is to evaluate an individual facility for economically feasible, energy cost saving opportunities. Additionally: • Quantify the amount of energy waste • Translate energy waste into wasted dollars • Assist in good decision making • Required for some Federal Grants
- 17. Energy Audit Steps • Analyze utility usage and costs • Perform site visit, collect data • Identify potential energy saving measures • Calculate energy and cost savings • Calculate cost of measures • Evaluate economic feasibility of each measure • Formulate an action plan for implementation • IMPLEMENT FEASIBLE MEASURES!
- 18. Energy Conservation How MuchCan You Save?????????? • How much are you currently spending? • Example: a school spends $9,000/yr on propane for heating. Can a new heating system save $20,000/yr in propane energy costs? • A grain handling system uses $600/yr in energy costs. Can you save $2,000/yr in energy costs by buying a new, ‘energy efficient’ system?
- 19. Energy Use Summary Sample Phase I Energy Use M M Btu/yr electricity natural gas
- 20. Energy Audit –On Site On site • Confirm utility usage and costs • Site visit • Inspect equipment and systems • Identify potential energy saving measures • Collect detailed information on these systems • Operating parameters • Operating hours • Building occupancy • Temperatures
- 21. Energy Audit –Identify On site – what to look for: • Equipment/systems that can be shut off • How? How often? • Equipment/systems that can be turned down • How? How often? • Old/inefficient equipment • What is current efficiency? How much is it used? • Heating/cooling systems • Can you recover energy? How? How often?
- 22. Energy Audit –Energy Use Calculate current energy use and cost: • How much energy is each equipment/system consuming? (energy/year) • What is the current cost? (energy/yr x energy cost) Calculate new energy use and cost: • How much energy would the new systems consume? (energy/yr) • What is the new cost? (energy/yr x energy cost)
- 23. Computer Simulations Provide atool for investigating physical systems • Uses: • Forecasting/prediction • Energy use • Comparing alternatives • HVAC systems • Examples include: • Indoor Air Quality • Airflow • Thermal comfort • Equipment performance • Building energy modeling
- 24. Building Energy Modeling Usedto evaluate the performance of buildings • Evaluates energy, cost, and comfort • Performance monitored for full year • Includes most building systems • Envelope • HVAC • Lighting • Service hot water • Scheduling • Controls
- 25. Building Energy Modeling Someexamples of software include: • EnergyPlus, BLAST, DOE-2, many others Typical modeling environment: • Consists of interaction between several ‘modules’ • Complex computational environment
- 26. Building Energy Modeling Whyis it important? • Buildings use approximately 1/3 of all energy • Simulation can and has helped reduce building energy consumption • Allows energy alternatives to be investigated • Leads to an energy- and cost-optimized building • Can help isolate operational problems in existing buildings • Necessary for many incentive programs • Required for LEED • Compare proposed building to ASHRAE Standard 90.1-2004
- 27. Energy Modeling Sample FacilityEnergy Usage $82,201/yr
- 28. Energy Audit –Savings Calculate energy and cost savings for each measure: • Energy Savings = Current Energy Use – Proposed Energy Use (energy/year) • Cost Savings = Current Energy Cost – Proposed Energy Cost ($/year) Compare savings to implementation cost: • Simple Payback Period = cost / $ savings per yr • Evaluate the feasibility for your facility • Generally 3 year payback or less is very good
- 29. Energy Modeling Energy Savings– Increase Envelope Insulation $77,749/yr $4,452/yr savings
- 30. Energy Modeling Energy Savings– Geothermal $63,761/yr $18,440/yr savings
- 31. Energy Modeling Energy Savings– Thermostat Setbacks $69,947/yr $12,254/yr savings
- 32. Energy Modeling Energy Savings– Heat Recovery $65,006/yr $17,195/yr savings
- 33. Energy Modeling Energy Savings– Lighting & Equipment $76,419/yr $5,782/yr savings
- 34. Energy Modeling Energy Savings– High Efficiency (All Systems) $31,506/yr $50,695/yr savings
- 35. Sample Energy Savings SampleBuilding 1 Summary 8.5% reduction in annual energy use • $42,956/yr total energy cost reduction • 8.1% reduction in annual energy costs • 4.7 year total simple payback period for all recommendations combined Sample Building 2 Summary • 7.0% reduction in annual energy use • $34,894/yr total energy cost reduction • 6.9% reduction in annual energy costs • 1.6 year total simple payback period for all recommendations combined
- 36. Energy Savings Summary Sample Building 1 Phase I Energy Savings M M Btu/yr energy savings
- 37. Energy Conservation –Measures Additional Examples of Energy Efficiency: • High efficiency heating & cooling systems • Heat recovery • Modulation controls (turn down/shut off) • Lighting • Replace incandescent with HE fluorescent • Replace mercury vapor with HPS/MH/HE fluor. • Heating systems • Temperature setbacks – freeze protection • Plug leaks / prevent infiltration • Turn Down • Shut off
- 38. Incentive Programs EPAct 2005Federal Tax Deduction • Commercial Building Tax Deduction: Provides a tax deduction for exceeding ASHRAE/IES Standard 90.1-2001 to the property owner for which the energy efficient expenditures are made • New construction or renovations
- 39. Incentive Programs Commercial BuildingTax Deduction • Allows for up to $1.80/sf tax deduction • Fully qualifying property • Saves at least 50% in energy costs through improvements in the following • Envelope • Lighting • HVAC/SWH
- 40. Incentive Programs Commercial BuildingTax Deduction - Subsystems • Partially qualifying property up to $0.60/sf in each • Saves at least 10% in envelope • 20% in lighting • 20% in HVAC/SWH
- 41. Incentive Programs Commercial BuildingTax Deduction – Lighting Subsystem Details • Interior Lighting Tax Deduction: Lighting energy consumption is estimated to represent approximately 1/3rd of commercial building energy use • Outperform the ASHRAE/IESNA Standard 90.1- 2001 lighting requirements by 25-40% . Eligible tax deduction per sqft will be between $0.30- $0.60
- 42. Incentive Programs Commercial BuildingTax Deduction Provides a tax credit AND energy savings! • Client qualified for $1.07/sqft tax credit • Installed high-performance insulation • Qualified for full $0.60/sqft • Installed efficient lighting technologies • Qualified for $0.47/sqft Required energy model and comparison of ASHRAE 90.1-2001 baseline and actual installation Example Provided by Derek Hengeveld, PE BTU Engineering, Inc. hengeveld@BTU-Engineering.com
- 43. Incentive Programs Business EnergyInvestment Tax Credit (ITC) • U.S. Dept. of Treasury • Commercial, Industrial, Agricultural • Only tax paying entities are eligible • 30% (Solar, Wind) or 10% (Geothermal) of system cost tax credit • May take tax credit as a cash grant from the U.S. Department of Treasury • The U.S. Department of Treasury has not released guidelines and is not accepting applications currently for this grant (expected late spring’09)
- 44. Incentive Programs Business EnergyInvestment Tax Credit (ITC) • U.S. Dept. of Treasury • Categories (partial) • Solar water or space heat • Wind • Photovoltaic • Hydroelectric • Biomass • Landfill gas • Geothermal electric • Geothermal hp • Fuel cells
- 45. Energy Conservation –Summary Best Solution: • No single magic bullet for total energy savings • Best solution: make informed decisions and integrate a combination of many items • Consider utilizing Federal incentives to leverage resources
- 46. Energy Help Resources • Your utility company • Building Energy Codes – request that your builders follow applicable energy codes • Read energy labels, compare Wattage, consider Energy Star models • REAP/9007 - Contact you local USDA Rural Development Office Energy Audits • Self audit worksheets – available from State and Federal sources • Your utility company may offer assistance • 3rd Party energy audits
- 47. Thank You Questions? Michael Twedt, Mechanical Engineering Dept. South Dakota State University (605) 688-4303 Email: Michael.Twedt@SDState.edu