1.

0 ENERGY MANAGEMENT, MONITORING & TARGETING

Principles of Energy Management

Procure energy at lowest possible price Manage energy use at highest energy efficiency Reusing and recycling energy Select low investment technology to meet present requirement and environment condition Make use of wastes generated within the plant as sources of energy and reducing the component of purchased fuels and bills

The 4 pillars of Successful Energy Management

Steps in Energy Action Planning

Top Management Commitment and Support

Manpower and funds to achieve continuous improvement. Appoint energy manager, form a dedicated energy team and institute an energy policy.

Appoint an Energy Manager

The tasks of energy manager are setting goals, tracking progress, and promoting the energy management program. Establish energy performance as a core value Depending on the size of the organization, the Energy Manager role can be a full-time position or an addition to other responsibilities Location of energy manager

Form a Dedicated Energy Team

execute energy management activities across the organization and ensuring integration of best practices. Creating an energy team helps to integrate energy management activities in an organization. In addition to planning and implementing specific improvements, the energy team measures and tracks energy performance and communicates with management, employees and other stakeholders. the team can include a representative from each operational area that significantly affects energy use

Organisation structure of Energy Management

Plant Management

Energy Management Division Energy manager

Manufacturing Section - 1

Manufacturing Section - 2

Other Sections, Acctts., HRD, Expansion, R&D, etc.

Shop Manager Nodal Officer for EM

Nodal officials from each department

Organisation structure of Energy Management in Hindalco

Management Director Chief Officer (Mfg) Chief Officer (Finance & Commerce) Central Energy Cell Central Technical Cell Sectional Heads Head Section Coordinators

Alumina

Reduction

Fabrication

Utilities

Boiler, Cogen & Rectifier

Institute an Energy Policy

Energy policy provides the foundation for setting performance goals and integrating energy management into an organization's culture and operations. A formal written energy policy acts both as: A public expression of the organizations commitment to energy conservation and environmental protection A working document to guide the energy management practices and provides continuity. It is in the company's best interest that support for energy management is expressed in a formal written declaration of commitment accompanied by a set of stated objectives, an action plan for achieving them, and a clear specification of responsibilities.

Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant ENERGY POLICY We, at Visakhapatnam Steel Plant, are committed to optimally utilise various forms of energy in a cost effective manner to effect conservation of energy resources. To accomplish this we will : Monitor closely and control the consumption of various forms of energy through an effective Energy Management System. Adopt appropriate energy conservation technologies. Maximise the use of cheaper and easily available forms of energy. Make energy conservation a mass movement with the involvement of all employees. Maximise recovery of waste energy. Reduce Specific Energy Consumption by 1% per year by 2010. Date 14-06-2002 Dr. B.N. Singh Chairman-cum-Managing Director

Assess Energy Performance

Understanding current and past energy use helps an organization identify opportunities to improve energy performance and gain financial benefits. Assessing energy performance is the periodic process of evaluating energy use for all major facilities and functions in the organization and establishing a baseline for measuring future results of energy efficiency efforts. Key aspects include data collection and management, establishing baseline, benchmarking, analysis and evaluation and conducting technical assessment and audit.

Data Collection and Management

Collect data
Determine appropriate level of detail Account for all energy sources Document all energy uses Collect facility and operational data Scope Maintenance Reporting and communicating Actions

Track data

Normalise data
Determine normalisation factor

Establishing Baseline

Determine the starting point from which to measure progress

Establish base year Identify metrics

Publish results

Benchmark
Compare the energy performance of facilities to each other, peers and competitors, and over time to prioritize which facilities to focus on for improvements. Facility or organizational performance may be benchmarked to:
Past performance Industry average Best in class Best Practices

Analysis and Evaluation

Analyze Data -Understand your energy use patterns and trends. Assessing your energy performance helps you to:
Categorize current energy use by fuel type, operating division, facility, product line, etc. Identify high performing facilities for recognition and reuse of best practices. Prioritize poor performing facilities for immediate improvement. Understand the contribution of energy expenditures to operating costs. Develop a historical perspective and context for future actions and decisions. Establish reference points for measuring and rewarding good performance.

Conduct Technical Assessments & Audits

Evaluate the operating performance of facility systems and equipment to determine improvement potential.
Assemble audit team Plan and develop an audit strategy

Create audit report

Set Goals
Set the tone for improvement throughout the organization Measure the success of the energy management program Help the Energy Team to identify progress and setbacks at a facility level Foster ownership of energy management, create a sense of purpose, and motivate staff. Demonstrate commitment to reducing environmental impacts Create schedules for upgrade activities and identify milestones Tool called force field analysis can be used to clarify the goals to be achieved

Determine Scope
Identify organizational and time parameters for goals

a) Organizational level b) Facility

c) Process or equipment
Time Periods
a)Short-term goals b) Long-term goals

Estimate Potential for Improvement

Review baselines, benchmark to determine the potential and order of upgrades, and conduct technical assessments and audits.

Reviewing performance data Benchmarking Evaluating past projects and best practice Reviewing technical assessments and audits Comparing goals of similar organizations Linking to organization-wide strategic goals

Establish Goals

Create and express clear, measurable goals, with target dates, for the entire organization, facilities, and other units.

Defined reduction
Best-in-class Efficiency improvement Environmental Improvement Actions

Force Field Analysis

Goal: To reduce energy consumption per unit of production

Positive Forces Negative Forces (Acting towards the achievement of the (Acting against the achievement of the Goal) Goal) High price of energy Absence of corporate energy policy Energy efficient technology available Incentive for high power factor Lack of awareness throughout company Insufficient skills and knowledge available Competing corporate priorities Top Management commitment to energy conservation Insufficient financial resources to fund measures Energy is a relatively high component of product cost

Create Action Plan

With goals in place, the organization is now ready to develop a roadmap to improve energy performance Successful organizations use a detailed action plan to ensure a systematic process to implement energy performance measures. Unlike the energy policy, the action plan is regularly updated, most often on an annual basis, to reflect recent achievements, changes in performance, and shifting priorities While the scope and scale of the action plan is often dependent on the organization, the steps below outline a basic starting point for creating a plan

Define Technical Steps and Targets

Evaluate technical assessments audit results Determine technical steps Create performance targets Set timelines Establish a tracking system and

Determine Roles and Resources

Get agreement from management and all organizational areas affected by the action plan before finalizing it. Work with the Energy Team to communicate the action plan to all areas of the organization

Determine Roles Establish performance metrics for contractors Determine Resources Define resources needs Secure resources Actions

Implement Action Plan

In addition to implementing the technical aspects of the action plan, consider the following
Create communication plan -Develop targeted information for key audiences about your energy management program. Raise awareness -Build support at all levels of your organization for energy management initiatives and goals. Build capacity -Through training, access to information, and transfer of successful practices, procedures, and technologies, you can expand the capacity of your staff. Motivate -Create incentives that encourage staff to improve energy performance to achieve goals. Track and monitor -Using the tracking system developed as part of the action plan to track and monitor progress regularly.

Evaluate Progress

Measure results Gather tracking data Benchmark Review action plan Get feedback Assess awareness Identify critical factors Quantify side benefits

Recognize Achievements
Internal Recognition
Determine recognition levels Individual Teams Facility Establish recognition criteria Determine recognition type Actions

External Recognition

Energy Monitoring & Targeting

you cant manage what you dont measure

Define-Energy Monitoring & Targeting

Monitoring is essentially aimed at preserving an established pattern Targeting is identification of energy consumption level, which is desirable as management objective to work towards energy conservation Monitoring and Targeting is a management technique in which all plant are managed as controllable resources in the same way that raw materials, personnel and capital are managed

Energy Monitoring & Targeting

Monitoring of Energy use in Utilities such as fuel, steam, refrigeration, compressed air, water, effluent and electricity etc. Energy use compared with production any other suitable measure regularly for establishing trends / setting targets Spotting of variances from trend for remedial action Using M&T alone, typical saving potential in various industrial sectors is between 5 and 20%.

Elements of M & T System

Recording -Measuring and recording energy consumption Analysing -Correlating energy consumption to a measured
output, such as production

Comparing -Comparing energy consumption to an

appropriate standard or benchmark consumption

Setting Targets -Setting targets to reduce or control energy

Monitoring -Comparing energy consumption to the set target

on a regular basis

Reporting -Reporting the results including any variances from

the targets which have been set

Controlling -Implementing management measures to correct

any variances, which may have occurred.

M & T can help to

Check accuracy of energy invoices Allocate energy cost to various departments Determine energy performance/efficiency Record energy use for future checking improvements of energy efficiency projects Highlight performance problems related to equipment /systems

Need for M & T

Find out whether energy use is getting better or worse Spots trends in energy consumption (seasonal, weekly etc.) Impact on energy use with changes in business Pin-point areas of wasted energy Comparison with business of similar nature How your business has reacted to changes in past Performance targets for energy management programme

Source for Information

Plant level information can be derived from financial accounting system-Utility cost cente Plant department level information can be found in comparative energy consumption data for group of similar facilities, service meter readings System level (for e.g. boiler plant can be obtained from sub-metering data Equipment level information can be obtained from name plate data, runtime and schedule information, sub-metered data on specific energy equipment

Data & Information Analysis

Annual energy cost sheet Thermal Energy Bill Electricity Bill

Month Fuel Fuel Fuel Total 1 2 3 Rs. Lakhs 1 2 3 4 5 6 7 8 9 10 11 12 SubTotals %

Day Night Maximum Total Kwh Kwh Demand Rs.Lakhs

Total Energy Bill Rs. Lakhs

% Share of fuels based on energy bill

LPG 12%
HSD 5% Electricity

45%

Furnace Oil 38%

Pie Chart on Energy Consumption

Table 8.2 : Fuel conversion data Energy source Supply unit Electricity kWh HSD kg Furnace Oil kg LPG kg Factor to Kcal 860 10,500 10,200 12,000

Figure 8.2 % Share of fuels based on consumption in kcals

Relating Energy Consumption and Production.

Energy current year Vs Previous Year

It does not tell full story about what is happening.

Moving Annual Total Energy vs. Production

Each point represents the sum of previous 12 months This techniques smoothens errors due to meter readings and seasons etc

Specific Energy Consumption

SEC is very low in December 1999

Specific Energy consumption with Production

Add production data to the SEC chart. SEC is very low in December 1999 because of record level production This indicates there could be some fixed energy consumption

Energy vs. Production

Scatter diagram Derive an equation for slope

Production- Energy Relationship

Energy consumed for the period) = (M x Production for same period) + C

Cumulative Sum (CUSUM)

Technique
Difference between expected or standard consumption with actual consumption data points over baseline period of time. Follows a fixed trend unless something (energy saving measure, deterioration in performance..) happens Helps calculation of savings/losses till date after changes

CUSUM chart -Example

This chats is a plot of variation in standard energy consumption cusum charts shows what is really happening to the energy performance July onwards , there is an ongoing decline in performance

Case Study
Table : 8.3 Month wise production with energy consumption Month E - Monthly Energy Use ( toe * / month) 340 340 380 380 300 400 280 424 420 400 360 320 340 372 380 280 280 380 P - Monthly Production ( tonnes / month) 380 440 460 520 320 520 240 620 600 560 440 360 420 480 540 280 260 500

During month 9, heat recovery system was installed Estimate the energy savings with heat recovery system using CUSUM technique?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Solution
1. Plot the Energy Production graph for the first 9 months Draw the best fit straight line Derive the equation of the line E = 0.4 P + 180 Calculate the expected energy consumption based on the equation Calculate the difference between calculated and actual energy use Compute CUSUM (refer table in next slide) Plot CUSUM graph Estimate savings accumulated from heat recovery system use

2. 3.
4. 5. 6. 7. 8.

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Eact 340 340 380 380 300 400 280 424 420 400 360 320 340 372

CUSUM P Ecalc 380 440 460 520 320 520 240 620 600 560 440 360 420 480 332 356 364 388 308 388 276 428 420 404 356 324 348 372

Eact Ecalc +8 -16 +16 -8 -8 +2 +4 -4 0 4 +4 -4 -8 0

CUSUM +8 -8 +8 0 -8 -6 -2 -6 -6 -10 -6 -10 -18 -18

Energy Production Graph

500 450 400 350

Energy(toe/month)

300 250 200 150 100 50 0 P-Production(t/m onth)

Ecalc=0.4 P+180

Plotting of CUSUM graph

20

10

1
-10

10

11

12

13

14

15

16

17

18

CUSUM

-20

Savings
-30 -40

-50

-60

Months