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
Industrial Energy Efficiency - A Midwestern Report
Strategic Energy Management in the Midwest - A Process Efficiency Case Study with Xcel Energy
1. MEEA’s Technical
Webinar Series:
Strategic Energy Management in the Midwest: A
Process 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 Management
Chad Gilless – Practice Lead, Strategic Energy Management
Member, US Technical Committee for ISO 50001
November 8, 2012
Proprietary and Confidential
5. EnerNOC Utility Solutions
EnerNOC provides a comprehensive suite of demand-side management (DSM) services
to 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…
…Universally
1 Retrofits Accepted
…Gaining
2
Operational Wider
EE Acceptance
3
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 Management
The importance of SEM is that it successfully applies the Behavioral Model for Energy
Efficiency 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 – these
improvements 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 Alliance
NEEA produces 68 million kWh third party validated saving from Continuous Energy
Improvement (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 Approaches
Ways 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 Gilless
Practice Lead, Strategic Energy Management
503.803.7283
cgilless@enernoc.com
Member, US Technical Committee ISO 50001
12
17. Suite of Industrial Offerings
Process Efficiency holistic concierge-style industrial program for
large, engaged customers
Full suite of project-specific programs for other industrials
Lighting
Motors
Compressed Air
Heating/Cooling
Custom
And more
New 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 Deliverables
Promote sustainable energy-efficiency behavior in
large industrial customers
Address business practices, operations, behavior
and technical projects
Data drives priorities; identifies opportunities
Customize support to match customer needs
Develop long-term energy
management plan and drive
implementation
20. Phased Approach
Multi-year holistic view of
energy management &
projects
3 phases Phase 1 Phase 2
Customer decides whether to Identification Scoping
proceed at each phase
MOUs formalize commitment
Customized when possible to
match customer needs &
overcome specific barriers Phase 3
Implementation
21. Phased Implementation
Phase 1 – Identify
Recognize opportunities, verify potential through
EnVinta & high-level walk-through
Involves executive level decision makers
Top 5 business priorities
Phase 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 Implementation
Phase 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
25. Process Efficiency Historical
Achievements – MN Electric kWh
60,000,000 $1.40
50,000,000 $1.20
Program $/kWh
kWh 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
$0.50
Therms 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
Specific
Energy champion energy
goal
Available
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