Transcript Presentation Title Slide

The Role of Benchmarking in
Promoting Strong Energy
Management Systems
Walt Tunnessen
US Environmental Protection Agency
ENERGY STAR Industrial Partnership
May 21, 2010
Evolution EPA Efficiency Initiatives
Early ’90 - Green Lights – Technology Focus
Mid ’90s - ENERGY STAR - Performance Standards & Labeling
Shift Focus to whole buildings and organization management
Late ’90s - ENERGY STAR Building Benchmarks & Labels
Partner of Year Award focused on “Program” vs “Project”
Early ’00s - ENERGY STAR Guidelines for Energy Management
Mid ’00s - Industrial Plant Benchmarks / Multiple Building Benchmarks
Late ’00s – ENERGY STAR Challenge for Industry
Issues in the market
• Upgrading the technology did not always
improve performance.
• U.S. companies tended to focus on selective
projects rather than continuous improvement.
• Efficiency gains from improved O & M and
“behavioral” changes overlooked or discounted
• Uncertainty in gauging performance
Management Systems
Approach
Focuses on
• Organizational practices
• Team development
• Tracking & Measurements
• Capital & behavioral projects
• Communication & employee
engagement
ENERGY STAR Guidelines
for Energy Management
Standardization of Energy
Management
• ISO 50001 - Energy Management Systems
underdevelopment
• ANSI MSE 2001:2008 – Energy Management
Standard
• European Energy Management Standards
• ASTM standards being developed for:
– Compressed systems, motors, steam systems, etc.
Why Energy management systems?
Companies with strong energy management programs:
• Achieve greater results
• Identify & implement better projects
• Focus on continuous improvement
• Have greater access to capital
• Establish energy efficiency cultures
• Sustain energy savings over time
Most companies and sites do not have strong programs:
• Many companies lack formal energy programs.
• “Managing energy” is done through ad hoc projects
The role of benchmarking
An energy management
system without good
benchmarks is like a ship
at sea with out a
compass!
Benchmarks are the waypoints towards improved
performance!
A barrier to greater efficiency
Barrier
• Uncertain bearing
on efficiency
Solution
• Provide a
benchmarks as an
objective
measurement
method of
performance
Benchmarking’s place in energy
management
• Can be based on comparison of
management practices or energy
data
– practice benchmarking gives an
idea of where to improve by
identifying best energy management
practices
– energy data benchmarking informs
how well an entity might perform
and improve and the position of that
entity in terms of energy
performance
• Benchmarking confirms if
improvement projects have had an
effect
ENERGY STAR Guidelines
for Energy Management
Types of benchmarking
• Internal
– compares performance against internal baseline or benchmark
• External
– compares performance against a metric “outside” of the
organization
– identifies “Best in Class” performance
• Quantitative
– data-driven; compares actual numbers
• Qualitative
– based on best practices; compares actions
Qualitative Benchmarking
Energy Program & Facility Assessment Matrixes
Used to evaluate energy program practices & identify gaps
Objectives shape benchmarks
Energy Management
Objective
Scope
Scale
Focus
Time Frame
Equipment or
process
Internal – comparison against other
owned equipment or process
External – comparison to industry
standard or cooperative study with
other organizations
 Peak demand period
 Three month sample
 Weekly
 Monthly
 Annual
 Continuous from baseline
Assess
facility performance
Whole facility or
sub-metered
portion
Internal – comparison of single
facility over time.
Comparison of similar facilities within
single organization
External – comparison of facility
against national performance rating
 Continuous from baseline
 Monthly
 Quarterly
 Annual
Assess department
or divisional
energy use
Facilities or
sub-metered
portions of
facilities
Internal – comparison against
internal sub-divisions
 Continuous from baseline
 Weekly
 Monthly
 Quarterly
 Annual
All facilities
Internal – comparison over time or
towards goal.
External –
Comparison of portfolio average
against a national performance rating
 Continuous from baseline
 Monthly
 Quarterly
 Annual
Assess
equipment efficiency
Assess
organizational
performance
Metrics shape approach
• Absolute
Common Energy Use Intensity Metrics
Metric
• Intensity
• Source vs. site
energy
• Normalized
intensity
• Ratings
Scale
Btu/square foot
Building
Btu/unit of product
Assembly plant
Btu/lbs of product
Manufacturer
Btu/lbs product processed
Refinery
Btu/number of beds
occupied
Hotel or Patient
Census
kWh/square foot
Lighting
kW/ton
Chilled water
efficiency
Watts/cubic feet per
minute
HVAC systems
The Energy Performance Score
Fuel
Efficiency:
MPG
Energy
Efficiency:
1 - 100
Answers: “If all plants in the industry use energy as this one, what percent of
plants in the country would be better, and what percent would be worse?”
ENERGY STAR scores
• External
– Define “best in class” for an industry or building type
• Sector Specific
– Industry sector-specific at 6 digit NAICS code (or more refined)
•
•
•
•
•
•
Whole facility / building level
All fuels and energy sources
Source energy intensity
Intensity based on production
Normalized for key variables
Performance ranked on a scale of 1 to 100
ENERGY STAR Benchmarking Tools
•
•
2 Formats: Energy Performance Indicators (EPIs) - Industrial
Portfolio Manager – Commercial Buildings
Industrial EPIs
Portfolio Manager
Motor Vehicle Assembly
Office Buildings
Wet Corn Milling
Data Centers
Cement Manufacturing
Petroleum Refining
Hospitals
K-12 Schools
Hotels
Pharmaceuticals
Supermarkets
Food Processing
(Multiple EPIs)
Retail Stores
Glass Manufacturing
(Multiple EPIs)
Warehouses
Petrochemicals
Bank Branches
Pulp and Paper*
Residence Halls
Dairy (Milk, Cheese, Ice Cream)
Waste Water Treatment
Steel*
Court houses
Medical Office Buildings
Industrial Focus
Collaborative initiatives to develop resources for the industry
Industry
Energy Guide
Energy Performance Rating Tool
Motor Vehicle Assembly
Published
Released 2005, Updated 2008
Wet Corn Milling
Published
Released 2006
Cement Manufacturing
Published
Released 2006
Petroleum Refining
Published
Released 2006 with Solomons
Pharmaceuticals
Published
Released 2008
Food Processing (Multiple)
Published
Released 2009, more in queue
Glass Manufacturing
Published
Released 2009
Petrochemicals
Published
In development
Pulp and Paper
Published
Draft models out for review
Steel
In discussions
In discussion
Plant Energy Performance Indicators
• Spread-sheet based tools
• Enable a higher level of energy management
– Provides industry wide comparison
– Enables better goal setting
– Empowers management to require greater energy performance
from plants
– Provides opportunity for EPA recognition
– www.energystar.gov/epis
– www.energystar.gov/industrybenchmarkingtools
Application of benchmarking results
Best investment opportunities
are in lower quartiles greatest potential for
improvement
Invest &
Tune
Invest
1
RCx & O&M
improvements
yield savings and
label candidates
25
High scorers
provide lessons
learned and
label candidates
Reward &
Learn
Tune
50
Energy Performance Score
75
100
19
ENERGY STAR Label
• Must have an Energy Performance Rating
of 75 or higher
• Must pass an environmental compliance
screen
• 55 ENERGY STAR Industrial Plants have
earned the label
– Auto Assembly
– Cement
– Wet Corn Milling
– Petroleum Refining
– Pharmaceuticals
– Food Processing
– Glass Manufacturing
Distribution of Plant Labels
Pharmacueticals
10%
Automobile
Assembly
29%
Petrolium
Refineries
16%
Food Processing
3%
Wet Corn Mills
3%
Cement
39%
Gauging Sector Performance
EPA’s Experience with the Automobile Assembly
Sector:
• Based on ENERGY STAR benchmarking of auto
assembly plants, EPA has seen fuel usage in the
industry improve by 12 percent over a five year period.
• The level of inefficiency has also dropped by 1.0
mmBtu/vehicle.
• The range of performance has also narrowed.
– This means that while the best auto assembly plants have
improved, the others have more than "kept up" with this
improvement.
ENERGY STAR Benchmarking:
Auto Assembly 2000-2005
EPA, Duke University
ENERGY STAR Benchmarking:
Cement Plants, 1997 - 2008
2008 Distribution of U.S.
Cement Plant Efficiency
1997 Distribution of U.S. Cement
Plant Efficiency
Preliminary analysis, EPA,
Duke University
2
3
4
5
6
7
8
Million Btu Source Energy per Ton of Clinker
9
10
11
12
Promoting internal benchmarking
ENERGY STAR Challenge for Industry
– Plants establish an energy intensity metric;
– Select an energy tracking system;
– Create an Energy Tracking Plan if their company does not have
existing procedures.
– Set a 10% improvement in 5 years goal.
– Register their baseline annual intensity
– Verify savings if goal is achieved.
• Helps plants establish a culture of benchmarking
that drives performance
• Facilitates stronger management practices
Results
First sites to achieve the ENERGY STAR Challenge for Industry
Site Name
Company Name
Location
Improvement
Period
Improvement
Achieved
Kodak Manitou
Eastman Kodak Company
Rochester, NY
2007 -2009
25%
Kodak GCG Columbus
Manufacturing
Eastman Kodak Company
Columbus, GA
2007 - 2008
10%
Shearer’s Foods –
Lubbock
Shearer’s Foods Inc.
Lubbock, TX
2009 - 2010
15%
DDC Redford
Component
Manufacturing Center
Detroit Diesel
Detroit, MI
2008 - 2009
17%
Elgin Headquarters
Facility
John B. Sanfilippo & Son, Inc.
Elgin, IL
2008 - 2009
17%
Selma Facility
John B. Sanfilippo & Son, Inc
Selma, TX
2008 - 2009
26%
Garysburg Facility
John B. Sanfilippo & Son, Inc
Garysburg, NC
2008 - 2009
23%
FetterGroup
Headquarters Facility
FetterGroup
Louisville, KY
2007 - 2009
23%
Summary
• Empowers industry to shift the curve of energy
performance
– For most companies, the ENERGY STAR EPI is the
first time they are able to see how their plants’ energy
performance compares to that of their industry
• Enables companies in the benchmarked industry
to set competitive goals for plant improvement
• Enables EPA to gauge improvement of an
industry’s energy performance over time
Contact
Walt Tunnessen
National Program Manager
ENERGY STAR Program
US EPA
(202) 343-9965
[email protected]
All resources found at:
www.energystar.gov/industry