Electrical Generation

Sustainable Electricity

Steering Committee Meeting

Angelo Mangatal Industrial Programs Division (IPD)

Senior Industry Officer Office of Energy Efficiency (OEE)

Presentation Overview

Who we are

Why Energy Efficiency?

Obstacles

Suggested Approach

Sector Performance

Questions/Answers

Conclusion

Annex: Program Details

ecoENERGY (NRCan) / Canadian Industry

Program for Energy Conservation (CIPEC)

Industry-government partnership that promotes voluntary actions to reduce industrial energy

intensity Key program elements include:

– Awareness & training, incentives, information, advice, networking and acknowledgement

CIPEC Leaders – Turning Sector Commitments into Company Action – Aggressive Goals that Achieve results

Who Are We?

Why Energy Efficiency?

(Positives)

Financial Benefits:

Improved Competitiveness

Reduce Costs (effort) vs. Return (bottom line)

Transportation; transmission (pipeline); infrastructure issues

Energy conservation has the potential to address supply and demand challenges faster and cheaper than investment in new generation

Environmental Benefits:

Contributes to Cleaner Air

Reduces GHG - Climate Change

Obstacles to

Energy Efficiency

Energy Efficiency isn’t a major business focus

Energy losses are not measured

No time to understand the potential

Risk – new technology and/or systems can appear to hinder Oil and Gas production

Our Suggested Approach

Action

RESULTS

Raise Awareness

Build

Capacity

Identify

Opportunities

Steps to Good Energy Management 1. Get Involved: - Canadian Industry Program for Energy Conservation (CIPEC)

- CIPEC LEADERS

2. Assemble an Energy Team

3. Train Staff

4. Assess Energy Use

5. Eliminate Waste &

Maximize Efficiency

6. Optimize Energy Supply/Project

Implementation

7. Celebrate Results

What Can Companies Do?

Where To Start?

Energy Efficiency Potential in Canada’s

Fossil-Fuel Electric Power Generation

This study has three main objectives:

To develop an energy use profile depicting the current state

of energy efficiency in Canada’s Fossil-Fuel Electric Power

Generation Sector;

To identify and evaluate energy efficiency opportunities to

improve Electricity Generating usage and demand in

different application areas for the sector; and

To develop initial cost curves for these various

opportunities.

NRCan Benchmarking Study

Potential Economic Energy

and Emission Reductions

Over $ 1 Billion per year for the Oil & Gas industry – 15% reduction in energy use = $ 780

million/yr

– 45% reduction in other emissions = $220 million/yr**

GHG emissions reductions = 29 Mt CO2e/yr

Excludes potential energy revenue or savings from cogeneration and other sources in the industry

* Sources: NRCan, Clearstone Engineering, AEUB ** Alberta only - Prepared by PTAC - Petroleum Technology Alliance Canada www.ptac.org

Total CIPEC Energy Intensity,

1990-2005: 10.46% Improvement

0.8

0.9

1.0

1.1

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Ind

ex

19

90

= 1

.0 0

Total CIPEC

Total CIPEC: 0.7% per year average

improvement in energy intensity

5.1% Improvement,

2003-05

Making Canada more

Energy Efficient

ecoENERGY Retrofit for Homes

ecoENERGY for Houses and Buildings

ecoENERGY for Industry

ecoENERGY Retrofit

Small buildings and industry

Council of Energy Ministers

Federal Budget

Highlights

Provides an extension to Class 43 accelerated capital cost allowance for investments in manufacturing and processing machinery and equipment-Expand ACCA to include ground-source heat pumps and waste-to-energy systems

Extend GST/HST relief to land leased to situate wind or solar power equipment

$66 M to set up the regulatory framework for industrial air emissions

$250 M for full-scale commercial demo of CC&S for coal-fired electricity and increase the CCA for CO2 pipelines

$10 M for research on bio-fuels emissions

$300 M to support nuclear energy (CANDU development & Chalk River)

Council of Energy Ministers

Meets annually and receives a report from the federal/ provincial/territorial Assistant Deputy Minister Steering Committee on Energy Efficiency (ASCEE)

Three working groups report to ASCEE Transportation

Built Environment

Industry

Participation by CEA/ electric utilities in the Built Environment and Industry Working Groups

Examples of Collaboration

– Home Retrofit

Hydro-Québec doubles the grants available under

ecoENERGY Retrofit – Homes

Manitoba Hydro has integrated ecoENERGY Retrofit

– Homes into its Power Smart initiative

Local electricity providers like Cambridge and

North Dumbries Hydro offer incentives for specific

measures (i.e., geothermal or heat pumps or solar

domestic hot water heaters).

Identify Opportunities

• Energy Monitoring

Guides

• Best Practices Guides

• Benchmarking Guides

• Process Integration

• Computational Fluid

Dynamics

Mix of Industrial Retrofit

Projects (GJ saved)

105,570 GJ

110,558 GJ

96,694 GJ

134,255 GJ

Lighting Boiler Systems HVAC Other

Direct Incentives (Utility Programs) Utility Programs – BC Hydro, Manitoba Hydro, Ontario Power Authority

Classes 43, 43.1/43.2 of Income Tax Act Class 43 provides 50% straight line ACCA for manufacturing and

processing equipment until 2010

Class 43.1 and 43.2 provide 30% or 50% ACCA (declining balance) for equipment used in systems that generate electricity and/or produce heat for industrial processes by:

recovering and re-using thermal waste

using specified-waste fuels

using cogeneration or

using renewable energy source’s: solar, wind and small hydro

Canadian Renewable & Conservation Expense (CRCE ) Covers intangible (soft) costs for Class 43.1/43.2 projects

Can be fully expensed in the year incurred or carried forward

Take Action

Utilities & Tax Treatments

Manage energy costs and

improve your bottom line

Sharpen your competitive edge

Reduce greenhouse gas

emissions (GHG’s)

Improve Air Quality

Conclusion

Thank You

Angelo Mangatal, Senior Industry Officer

Office of Energy Efficiency (OEE)

Industrial Programs Division (IPD)

amangata@nrcan.gc.ca

Office (613) 943-3559 Cell (613) 868-0104

Questions

Heads Up CIPEC

Bi-weekly e-news letter

11,000 readers

CIPEC Annual Report

http://oee.nrcan.gc.ca/industrial/cipec.cfm

Participate in CIPEC Task Forces

27 Sector and Regional Task Forces in Canada

Task Forces meet 3-4 times per year to share

ideas on energy management best practices.

Conferences & Awards

Industrial Energy Efficiency Conference held

every 2 years : Energy 2007

www.energy2007.gc.ca

1. Get Involved

Bring all employees on board

Choose an energy champion

Select team members

- Plant engineer, maintenance staff,

financial advisor, etc.

Meet regularly to develop and implement an

- “Energy Management Plan”

NRCan employee awareness materials

- “Team Up for Energy Savings”

2. Assemble an Energy Team

Build Awareness & Knowledge

Dollars to $ense Workshops

4 different workshops

– “Spot the Energy Savings

Opportunities”

– “Energy Monitoring”

– “Energy Master Plan”

– “Financing”

33% discount for CIPEC Leaders

Can be customized to meet individual

companies needs

3. Train Staff

Measure

Analyze

Take Action

Data

Information

ResultMeasure

Analyze

Take Action

Data

Information

Result

Your Plant Load Shape

0

50

100

150

200

250

300

350

400

450

1 3 5 7 9 11 13 15 17 19 21 23

Time of Day

kW

De

ma

nd

Dollars to $ense workshops

– “Energy Monitoring”

NRCan Publications

– Energy Management & Planning Guide

– Benchmarking Studies (Automotive Parts

Sector)

– Energy Efficiency Opportunities Guides

– Technical Guides

Process Integration, CFD, (up to $50k in

assistance)

4. Assess Energy Use

Identify where, how and what amount of

energy is used

Turn it off / down

Control it

Match your need

Reduce loss

Good maintenance

Examples of recent software tools: Boiler Efficiency Calculator that evaluates

boiler performance

CanMOST software program that analyses

and compares the efficiency of three-phase

electric motors; over 43,000 motors in the database

RETSCREEN assesses the financial viability/risk for various types of energy efficient/renewable energy technologies

5. Eliminate Waste &

Maximize Efficiency

Identify energy-saving opportunities

Negotiate a supply contract

Consider heat recovery

Consider renewable and

alternate energy options

(Financial incentives for

industry, ecoEnergy Heat

and Power)

6. Optimize Energy Supply &

Project Implementation

Consider new supply options

Keep momentum going and build on

previous success(es)!

Heads Up CIPEC

Case studies

CIPEC Annual Report

CIPEC Leadership

Awards

7. Celebrate Success