Aimee McKane

Making a stronger case for industrial energy efficiency by quantifying non-energy benefits

Abstract This paper describes a more compelling case for industry to promote the non-energy benefits of energy efficiency investments. We do this in two ways to actively appeal to chief executive officers (CEOs) and chief financial officers (CFOs) primary responsibility: to enhance shareholder value. First, we describe the use of a project-by-project corporate financial analysis approach to quantify a broader range of productivity benefits that stem from investments in energy-efficient technologies, including waste reduction and pollution prevention. Second, and perhaps just as important, we present such information in corporate financial terms. These standard, widely-accepted analysis procedures are more credible to industry than the economic modeling done in the past because they are structured in the same way corporate financial analysts perform discounted cashflow investment analyses on individual projects. Case studies including such financial analyses, which quantify both energy and non-energy benefits from investments in energy-efficient technologies, are presented. Experience shows that energy efficiency projects’ non-energy benefits often exceed the value of energy savings, so energy savings should be viewed more correctly as part of the total benefits, rather than the focus of the results. Quantifying the total benefits of energy efficiency projects helps companies understand the financial opportunities of investments in energy-efficient technologies. Making a case for investing in energy-efficient technologies based on energy savings alone has not always proven successful. Evidence suggests, however, that industrial decision makers will understand energy efficiency investments as part of a broader set of parameters that affect company productivity and profitability.

Thinking Globally: How ISO 50001 - Energy Management can make industrial energy efficiency standard practice

Industry utilizes very complex systems, consisting of equipment and their human interface, which are organized to meet the production needs of the business. Effective and sustainable energy efficiency programs in an industrial setting require a systems approach to optimize the integrated whole while meeting primary business requirements. Companies that treat energy as a manageable resource and integrate their energy program into their management practices have an organizational context to continually seek opportunities for optimizing their energy use. The purpose of an energy management system standard is to provide guidance for industrial and commercial facilities to integrate energy efficiency into their management practices, including fine-tuning production processes and improving the energy efficiency of industrial systems. The International Organization for Standardization (ISO) has identified energy management as one of its top five priorities for standards development. The new ISO 50001 will establish an international framework for industrial, commercial, or institutional facilities, or entire companies, to manage their energy, including procurement and use. This standard is expected to achieve major, long-term increases in energy efficiency (20percent or more) in industrial, commercial, and institutional facilities and to reduce greenhouse gas (GHG) emissions worldwide. This paper describes the impetus for the international standard, its purpose, scope and significance, and development progress to date. A comparative overview of existing energy management standards is provided, as well as a discussion of capacity-building needs for skilled individuals to assist organizations in adopting the standard. Finally, opportunities and challenges are presented for implementing ISO 50001 in emerging economies and developing countries.

Opportunities, Barriers and Actions for Industrial Demand Response in California

LBNL-XXXXX Opportunities, Barriers and Actions for Industrial Demand Response in California Aimee T. McKane, Mary Ann Piette, David Faulkner, Girish Ghatikar, Anthony Radspieler Jr., Bunmi Adesola, Scott Murtishaw and Sila Kiliccote Lawrence Berkeley National Laboratory 1 Cyclotron Road Berkeley, California 94720 January 2008 The work described in this report was coordinated by the Demand Response Research Center and funded by the California Energy Commission, Public Interest Energy Research Program under Work for Others Contract No. 500-03-026 and by the U.S. Department of Energy under Contract No. DE-AC02- 05CH11231.

Opportunities for Energy Efficiency and Automated Demand Response in Industrial Refrigerated Warehouses in California

This report summarizes the Lawrence Berkeley National Laboratorys research to date in characterizing energy efficiency and open automated demand response opportunities for industrial refrigerated warehouses in California. The report describes refrigerated warehouses characteristics, energy use and demand, and control systems. It also discusses energy efficiency and open automated demand response opportunities and provides analysis results from three demand response studies. In addition, several energy efficiency, load management, and demand response case studies are provided for refrigerated warehouses. This study shows that refrigerated warehouses can be excellent candidates for open automated demand response and that facilities which have implemented energy efficiency measures and have centralized control systems are well-suited to shift or shed electrical loads in response to financial incentives, utility bill savings, and/or opportunities to enhance reliability of service. Control technologies installed for energy efficiency and load management purposes can often be adapted for open automated demand response (OpenADR) at little additional cost. These improved controls may prepare facilities to be more receptive to OpenADR due to both increased confidence in the opportunities for controlling energy cost/use and access to the real-time data.

Industrial Motor System Optimization Projects in the US: An Impact Study

ABSTRACT This study examines data from 41 industrial motor system optimization projects implemented between 1995 and 2001 that were developed into DOE case studies to determine the effect of the energy savings brought about by such projects. The study calculates aggregate energy savings, the net present value (NPV) of project savings, and the internal rates of return of project cash flow (IRR) for each project, as well as for all projects aggregated together and for projects having large capital expenditures versus those in which the systems were optimized primarily with engineering changes. Finally, the study makes some rough estimates of possible energy savings throughout US industry. For this study, projects are considered financially worthwhile if the NPV of the project savings over a 10-year project life is greater than the project cost. Because the simple payback criterion is the norm in the DOE case studies, it is used as a complementary measure of success. The initial results suggest that the NPV ...

Automated Demand Response: The Missing Link in the Electricity Value Chain

Automated Demand Response: The Missing Link in the Electricity Value Chain Aimee McKane, Lawrence Berkeley National Laboratory Ivin Rhyne, California Energy Commission Alex Lekov, Lawrence Berkeley National Laboratory Lisa Thompson, Lawrence Berkeley National Laboratory Mary Ann Piette, Lawrence Berkeley National Laboratory August 2008

Opportunities for Open Automated Demand Response in Wastewater Treatment Facilities in California - Phase II Report. San Luis Rey Wastewater Treatment Plant Case Study

This case study enhances the understanding of open automated demand response opportunities in municipal wastewater treatment facilities. The report summarizes the findings of a 100 day submetering project at the San Luis Rey Wastewater Treatment Plant, a municipal wastewater treatment facility in Oceanside, California. The report reveals that key energy-intensive equipment such as pumps and centrifuges can be targeted for large load reductions. Demand response tests on the effluent pumps resulted a 300 kW load reduction and tests on centrifuges resulted in a 40 kW load reduction. Although tests on the facility?s blowers resulted in peak period load reductions of 78 kW sharp, short-lived increases in the turbidity of the wastewater effluent were experienced within 24 hours of the test. The results of these tests, which were conducted on blowers without variable speed drive capability, would not be acceptable and warrant further study. This study finds that wastewater treatment facilities have significant open automated demand response potential. However, limiting factors to implementing demand response are the reaction of effluent turbidity to reduced aeration load, along with the cogeneration capabilities of municipal facilities, including existing power purchase agreements and utility receptiveness to purchasing electricity from cogeneration facilities.

The China Motor Systems Energy Conservation Program: Establishing the Foundation for Systems Energy Efficiency

Industrial electric motor systems consume more than 600 billion kWh annually, accounting for more than 50% of China’s electricity use. There are large opportunities to improve the efficiency of motor systems. Electric motors in China are approximately 2-4% less efficient on average than motors in the U.S. and Canada. Fans and pumps in China are approximately 3—5% less efficient than in developed countries. More optimized design, including appropriate sizing and use of speed control strategies, can reduce energy use by 20% or more in many motor-driven system applications. Unfortunately, few Chinese enterprises use or even know about these energy-saving practices. Opportunities for motor system improvements are probably greater in China than in the U.S. or Europe.

Assessing the Control Systems Capacity for Demand Response in California Industries

Assessing the Control Systems Capacity for Demand Response in California Industries Girish Ghatikar, Aimee McKane, Sasank Goli, Peter Therkelsen, Daniel Olsen Lawrence Berkeley National Laboratory January 2012

Opportunities for Energy Efficiency and Open Automated Demand Response in Wastewater Treatment Facilities in California -- Phase I Report

This report summarizes the Lawrence Berkeley National Laboratory?s research to date in characterizing energy efficiency and automated demand response opportunities for wastewater treatment facilities in California. The report describes the characteristics of wastewater treatment facilities, the nature of the wastewater stream, energy use and demand, as well as details of the wastewater treatment process. It also discusses control systems and energy efficiency and automated demand response opportunities. In addition, several energy efficiency and load management case studies are provided for wastewater treatment facilities.This study shows that wastewater treatment facilities can be excellent candidates for open automated demand response and that facilities which have implemented energy efficiency measures and have centralized control systems are well-suited to shift or shed electrical loads in response to financial incentives, utility bill savings, and/or opportunities to enhance reliability of service. Control technologies installed for energy efficiency and load management purposes can often be adapted for automated demand response at little additional cost. These improved controls may prepare facilities to be more receptive to open automated demand response due to both increased confidence in the opportunities for controlling energy cost/use and access to the real-time data.