UNIDO EnMS Expert Training Module 1 Day 3. Trainers Location

Transcription

1 UNIDO EnMS Expert Training Module 1 Day 3 Trainers Location 1

2 Topic Duration (hours) Exercise (mins) Break duration Start Time End Time DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation 30 12:15 12:45 culture Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation 30 13:30 14:00 culture Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 2 TOTALS

3 Energy Saving Calculations How to measure and verify actual savings from initiatives 3

4 Calculating Energy Savings E S = B peu R peu ± A Where, E S B peu R peu A = energy savings = Baseline period energy use = reporting period energy use = adjustments No energy savings meter! 4 4

5 What is M&V? M&V= Measurement and Verification Is the process of determining energy performance following a defined protocol Multiple protocols in use What do you use? 5 5

6 M&V Protocols EVO: IPMVP (2012) ISO under development U.S. DOE: Superior Energy Performance M&V Protocol ASHRAE: Guideline 14 SATS

7 M&V Protocol Purpose Improved energy performance results from a reduction in either energy consumption or use, or both We cannot measure what we do not have We do not measure this reduction BUT We can measure energy consumption, and Following a strictly defined PROTOCOL, we can analyze measured usage to arrive at improved energy performance or energy 7 savings 7

8 Primary M&V Issue Can be measured Temperature Flow Velocity Current Voltage Electrical power Operating hours Cannot be measured Improved Energy Performance or Energy savings No energy savings meter! 8 8

9 Adjustments An example of why we need Adjustments: An energy retrofit was performed but plant production is lower this year than last. How much of the raw savings were due to the retrofit and not the change in production? To identify the retrofit s effect we must adjust for unrelated changes. We adjust ( normalize ) base year and post retrofit energy use data to a common set of conditions. 9

10 M&V Cost vs. Uncertainty There is no absolutely correct savings number. Every savings number is wrong, but we do not know the correct value. 10

11 So, how do you calculate the energy performance improvement for your EnMS? Energy performance improvements are due to all of the energy savings occurring within the boundaries of the EnMS Some of these savings are due to capital projects Some of the savings are due to changes in operations and maintenance The total savings or energy performance improvement can be totalized from all of the projects and changes, or The total savings can be calculated from changes in utility or revenue meters readings 11

12 Calculate Total Energy Savings for EnMS Top-down savings calculation * Base on regression analysis * Project savings required for sanity check Bottom-up savings calculation * sum individual projects * May miss O&M savings 12

13 Exercise: Energy Saving Calculations 13

14 Topic Duration (hours) Exercise (mins) Break duration Start Time End Time DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation 30 12:15 12:45 culture Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation 30 13:30 14:00 culture Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 14 TOTALS

15 What is financial appraisal? All organisations need to control spending Current spending (expenses) Capital spending (investment) Need to make choices of where to spend Spend; Yes or No? Choose between options for investment in savings project Choose between options using life cycle cost (LCC) Need tools to help with these choices This is a basic introduction We will ignore the effects of taxes We will consider the effects of inflation and interest rates

16 Some financial choices Do you buy bread at $1.20 or $1? Two motors are the same One costs $300 and the other $250 Two motors are not the same One costs $300 and the other $250 I will give you $1 now or $2 in 12 months time? Two compressors: One costs $5,000 to buy and $10,000 p.a. to operate The other $6,000 to buy and $9,000 to operate Which is best?

17 Simple payback (SPB) SPB = Cost in $ / Savings in $ p.a. Usually organisations have a limit e.g. only opportunities with a payback of less than 2 years will be considered Advantages Simple Quick Good rule of thumb Useful as a quick estimate Useful for low cost opportunities Disadvantages Too simple What is the effect of the life of the item? Should not be used for major decisions, either high cost or organisationally critical

18 Simple payback (SPB) Example 1 Energy Savings that will be made = $1000 p.a. Cost of modification = $2000 What is the payback?

19 Simple payback (SPB) Example 1 Energy Savings that will be made = $1000 p.a. Cost of modification = $2000 What is the payback? 2 years

20 Simple payback (SPB) Example 2 Energy Savings that will be made = $1000 p.a. Additional maintenance cost = $500 p.a. Cost of modification = $500 What is the payback?

21 Simple payback (SPB) Example 2 Energy Savings that will be made = $1000 p.a. Additional maintenance cost = $500 p.a. Cost of modification = $500 What is the payback? 1 year

22 Time value of money Very important concept If I offer you the choice of $5,000 now or $800 p.a. for 10 years which would you choose? You need to take into account the option of putting the $5,000 in the bank and earning interest at say 10% Due to inflation money is worth less in the future than it is now Assume 5% inflation $100 now is worth $95 in one year We need to take this into account Future savings are worth less than they are now The reverse may be the case with savings if energy prices continue to rise

23 Discount rate (or hurdle rate) Need to know discount rate This is the return the organisation will decide to invest at Sometimes increased for more risky projects Related to the cost the organisation incurs in raising the capital Weighted average cost of capital (WACC) (debt and equity) Usually your accountant will know the discount rate Assuming the money is available

24 Net Present Value (NPV) Present Value (PV) or present worth (PW) The value now of a future amount of money E.G. $100 in 1 year at 5% inflation has a present value of $95 NPV is the value now of a future stream of cash flows Can be incoming or outgoing and is typically a combination of both Spreadsheets have an NPV function Typically we spend money now to make a saving Then we save money in the future on an ongoing basis In energy terms we save energy each year We may have extra maintenance costs (or less!) We may have a salvage value at the end If NPV > 0 then it is a viable idea If you have the money and it is the best NPV available

25 Internal Rate of return (IRR) Very similar to NPV Doesn t use discount rate IRR is the rate of return of the projected cash flows

26 NPV and IRR calculation

27 Life cycle cost (LCC) Similar to NPV but all cash flows are negative For example Two options Buy a fixed speed pump for $5,000 and annual running costs of $7,000 OR Buy a variable speed pump for $8,000 and annual running costs of $3,000

28 Life Cycle Cost (LCC)

29 Exercise Financial appraisal Each team to consider a real example and perform, payback, NPV and IRR calculations on estimated costs and savings. Each to comment on financial viability and other barriers. You need to be able to do this in real life and the exam. Practice. 29

30 See you in 15 minutes! 30

31 Duration (hours) Exercise (mins) Break duration Start Time End Time Topic DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation culture 30 12:15 12:45 Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation culture 30 13:30 14:00 Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 TOTALS

32 Planning workflow 1. Energy bill and submeter data 2. Analyze past, present and future energy use 4. Identify Drivers, get data and analyze SEUs 5. Develop baselines and Performance indicators for each SEU 3. Identify and quantify Significant Energy Users (SEUs) 7. Technical energy audits 8. Identify opportunities for improved performance, review and decide on action plans 6. Review operational control for all SEUs 32

33 Planning How much energy am I using? Where am I using it? Which are significant users? What is driving it? Who is influencing its use? Do I need to have an energy audit? What are the best opportunities? System Optimization Renewable energy options Are there legal or other requirements? Develop baseline & indicators Set objectives and targets Action Plans 33

34 Relationship 34

35 Objectives, Targets and action plan SEU list Training needs Energy Assessment reports Energy Policy Objectives, Targets and action plans EPO Register 35

36 Examples Objective: Reduce facility electricity costs by 20% over the next two years. Objective: Reduce facility natural gas usage by 15% in Objective: Reduce facilitywide energy usage by 25% by

37 Sample objectives ID Description Resp Target Date Status 1 Reduce electricity consumption by 15% JB 31 Dec Increase awareness of energy matters to 90% of employees MM 31 Dec

38 Targets Specific What is the task to be done, use action words What are the details? Measurable How will we know if the task is complete and how well? Is it possible and fair? Achievable Is training or personal development required? Which objective is it supporting? Relevant In what way is it improving our energy performance? Timed When will it be completed or how often? Does it need sub steps and are these SMART? 38

39 Examples Target: By end of 2010, reduce electrical energy use in production and administrative operations by 2% from 2009 baseline. Target: By end of 2010, reduce natural gas usage in production operations by 1% from 2009 baseline. Target: Reduce natural gas usage in boiler house by 25% in Target: Reduce compressed air usage to allow one compressor to be taken off-line in January

40 Sample targets ID Description Resp Target Date Status 1 Train all boilers operators on energy efficient operations 2 Carry out 4 energy awareness training sessions 3 Increase condensate recovery rate to 90% 4 5 JB 31 Dec2011 MM 31 Dec comp JB 31 Dec % 40

41 Hierarchy in ISO Policy Objectives Targets Opportunities Action Plans Results 41

42 Exercise: Develop potential objectives and targets for your EnMS Complete this exercise for real over the coming months 42

43 ER8 Action Plans 43

44 Exercise: Develop potential action plans for your organisation 44

45 Topic Duration (hours) Exercise (mins) Break duration Start Time End Time DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents :45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation 30 12:15 12:45 culture Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation 30 13:30 14:00 culture Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 45 TOTALS

46 Documentation Some specific documentation is required by an EnMS Organizations have both the flexibility and the responsibility to determine additional needed documentation Documentation can guide behaviour or activities, or provide evidence of what we have done. 46

47 DOCUMENTATION = INFORMATION There are two basic types of documentation: Documents provide information about the present (say what you do) Records provide information about the past (prove you did what you said) 47

48 What s the difference? Documents state current policies and commitments implement policies and commitments guide activities and operations, typically defining what is to be done who is to do it when it will be done how it will be done Records state results achieved provide evidence of activities performed 48 48

49 Typical Documentation Structure 49

50 Examples of EnMS Documents Scope and boundaries Description of core elements and their interaction Energy policy Energy objectives and targets Energy management action plans Methodology and criteria used to develop the energy review Methodology for determining and updating the EnPIs Other documents determined necessary 50

51 Typical Barriers Organizational culture Document nothing Document everything 51

52 Documents Value to the Organization Provide guidance for employees in new roles Consistency in tasks or activities performed Communicate expectations to contractors and suppliers May facilitate training and understanding 52

53 Generic Examples of Records Completed forms Reports Data analyses Meeting minutes Training certificates 53 53

54 Examples of EnMS Records Energy review, baseline, EnPIs Training records Decision regarding external communication Results of design activity Monitoring and measurement results Audit results Management review records 54

55 Records Value to the Organization Ensures clear evidence of activities and results Provides basis for data analysis Can serve as organizational memory for those who come later 55

56 Exercise - Document list Consider using the roles and responsibilities tab of the tools as your document list. It has all the tasks that you need to complete to have an effective EnMS There is a column for documents. This could be developed. If you do this then the document tab becomes redundant and can be deleted or hidden. Start developing this list for the parts of the EnMS considered so far. 56

57 Topic Duration (hours) Exercise (mins) Break duration Start Time End Time DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents :45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation 30 12:15 12:45 culture Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation 30 13:30 14:00 culture Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 57 TOTALS 2,50 4,00 1,25

58 Continue to build management support 58

59 Communicate with management Inform management of progress Ask for support Inform about issues/problems Ask for decisions 59

60 Discussion on management support Slides from user training cover this topic very well. Discuss barriers, issues, why this can be so important. 60

61 Duration (hours) Exercise (mins) Break duration Start Time End Time Topic DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation culture 30 12:15 12:45 Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation 30 13:30 14:00 culture Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 61 TOTALS 2,50 4,00 1,25

62 What Does the EnMS Require? Change If you do what you ve always done, you ll get what you always got. As long as people are involved in energy management, there are going to be differences of opinion. How you choose to deal with change determines whether there will be conflict or resolution, success or failure Continual improvement = continual change 62

63 Change is everywhere Where are they now?: PanAm, TWA, SwissAir, The Soviet Union, Yugoslavia, Film cameras, etc. etc. Technology changes: ipad, PC, digital cameras, internet, etc. Business environment changes 63

64 What is Culture? Culture is any and all of the following: the way things are done around here What is OK and what is not ok Where we sit What time we come to work Documented and undocumented rules behavior etc 64

65 Importance of Commitment Management Commitment Staff Commitment Neil Russell-Jones Managing Change 65

66 Change Management Process Eight step change model (John P. Kotter Leading Change) 1.Create a sense of urgency 2.Build support from key influencers 3.Create a vision of what can be achieved 4.Communicate the vision 5.Remove obstacles 6.Create short term wins 7.Build on the improvements 8.Anchor the change in your culture 66

67 1. Create a sense of urgency Burning Platform Need for change Future state more desirable than current state Crisis Senior management and staff Driver Cost Reduction Carbon Emissions Competition Changes to the market Security of supply Price rise etc. 67

68 2. Build support from key influencers Support Management Employees About bringing people with you on change journey Momentum Key Personnel Influencers of change Production Quality Engineering Employee Representatives 68

69 3. Create a vision of what can be achieved What is possible Long Term Big Hairy Audacious Goal (BHAG) Use Examples e.g. 50% reduction achieved elsewhere Leverage competitor success etc. Goal Alignment Do not accept kwh of Natural Gas per annum They are different 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 11,273,810 Its easy for them 13,944,326 etc. Consumption Gas target Linear (Gas target) Target taken at 25% reduction from 2004 baseline 12,216,666 9,315,832 7,151,985 0 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 69

70 4. Communicate the vision The 5 W s Who should be told When to communicate What is the message Where will it be delivered Who is responsible Non Verbal The Critical Steps Everyone (SEU s etc) As early as possible Vision, targets, policy Reports, posters meetings etc. Management rep etc, Walk the talk 70

71 5. Remove obstacles What barriers? No need for change Too busy Threatened by change Politics We heard it all before. What solutions? Step 1 sense of urgency Commitment Communication Negotiation Prove them wrong. 71

72 6. Create short term wins Opportunities Easily implemented Highly visible Large impact Low investment Focus on the blockers What kind Compressed air leaks PIR on lighting Boiler house noise reduction Reduced heat in process area Win over the non believers 72

73 7. Build on the improvements Action Plans Stakeholder involvement More technical projects Larger teams Communication Relentless focus Focus on the Vision Regular engagement Take on bigger improvements Engage with more personnel Continue communicating Not a project 73

74 8. Anchor the change in your culture Relentless Focus Re-evaluate the vision Communication Not a Project Need to make it the new culture Make the switch to sustainability permanent 74

75 Change Management It is not the strongest of the species that survives, nor the most intelligent; it is the one that is the most adaptable to change Charles Darwin Sources: John P. Kotter Leading Change Neil Russell-Jones Managing Change 75

76 See you in 45 minutes! 76

77 Duration (hours) Exercise (mins) Break duration Start Time End Time Topic DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management 30 12:15 12:45 Lunch 45 12:45 13:30 Change Management Exercise 30 13:30 14:00 Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 TOTALS

78 Exercise: Discussion on change management issues and how to deal with them 78

79 Duration (hours) Exercise (mins) Break duration Start Time End Time Topic DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation culture 30 12:15 12:45 Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation culture 30 13:30 14:00 Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 79 TOTALS 2,50 4,00 1,25

80 The EXAMINATION!

81 See you in 15 minutes! 81

82 Duration (hours) Exercise (mins) Break duration Start Time End Time Topic DAY 3 Calculating energy savings :30 09:15 Financial Analysis :15 10:15 Break 15 10:15 10:30 ER8 Objectives, targets and actions plans :30 11:45 Introduction to documents 15 11:45 12:00 Management Review of Energy Planning 15 12:00 12:15 Change Management Exercise is a discussion: changing organsiation culture 30 12:15 12:45 Lunch 45 12:45 13:30 Change Management Exercise is a discussion: changing organsiation culture 30 13:30 14:00 Preview of the preliminary test 15 14:00 14:15 test on Module :15 15:30 Break 15 15:30 15:45 Communications and Next Steps 30 15:45 16:15 TOTALS 2,50 4,00 1,25 82

83 TOPICS Webinar 1: commitment Webinar 2: data, trends, SEUs, baseline, EnPIs Webinar 3: ECO list, measurement plan Webinar 4: objectives, targets and action plan Module 2: Test, Operations Webinars Module 3: Checking, IA, Management Review Final Exam Communication: Basecamp 83

84 Monthly Webinars Each webinar is 1 hour in length Each team will report on progress Discuss any issues or problems DO NOT GO INTO DETAIL! National experts meet as a group during webinars if appropriate GotoMeeting 84