© 2012 Cascade Energy, Inc. © 2012 Cascade Energy, Inc.
By Marcus Wilcox, CEO, PE
Best Practices in Industrial Energy Efficiency Program Design & Implementation
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• Founded in 1993 • Specialized in industrial energy efficiency
– By sector – By process – By sub-system or equipment
• Design, management or support of utility conservation programs – Program Partner for BPA Energy Smart Industrial Program – Program Delivery Contractor for ETO Production Efficiency
Program – Support for PacifiCorp, PSE, Idaho Power & others
• Corporate energy management services – Sysco’s 100+ food distribution centers (largest in world) – Americold’s 160+ public refrigerated warehouses (largest
in world)
Introduction to Cascade Energy
Pacific Northwest Industries
• Pulp & Paper • Food Processing • Refrigerated Warehouses / Fruit
Storage • Wood Products • High-Tech • General Manufacturing • Chemical • Primary Metals & Value-Added
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Common Systems & Equipment
• Compressed Air • Refrigeration • Pumping • Fans / Blowers / Aerators / Vacuum • Hydraulics • Material Handling / Conveying • Refiners • Electric Resistance Heating • Lighting • Miscellaneous
– Sawmill de-barker & head rig, battery chargers, cranes, etc.
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These are focused on electricity, there is a similar list for natural gas and thermal systems
Characteristics of Industrial
• Can be VERY large equipment or systems • Long operating hours • Highly interactive systems • Highly complex systems • Many systems are custom or one-off • Operating strategies and staff may be
specialized • Institutional or “tribal” knowledge is
commonly involved • Safety, environmental & production
always trump energy efficiency 5
What About Motors?
• Motors are not the primary focus • What matters is:
– What is driven by the motor? – What parameters impact the driven load? – How is capacity of driven load varied? – How long is the load driven?
• Leverage some of the great motor programs and tools out there – e.g., “Green Motors”, “Motor Decisions Matter”,
“MotorMaster+”
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Common Industrial Projects
• Fundamental Process Improvement • System Upgrades and Optimizations • More Efficient Equipment • VFDs & Control Upgrades • Energy Management (increased area of focus)
– Strategic/Continuous Energy Management – O&M Opportunities – Energy Project Managers (aka, RCMs) – Technical Coaching/Training
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Some PNW Industrial DSM Programs
• Avista: Site-Specific Incentives • BPA: Energy Smart Industrial • ETO: Production Efficiency • Idaho Power: Custom Efficiency • PacifiCorp: FinAnswer • PSE: Industrial System
Optimization Program
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Common Themes • Goals are energy savings (kWh or MWa) • Incentives of 8 to 30¢/kWh, up to 50% to 70%+ of project cost • Retrofit & new construction • Various levels of deemed or prescriptive technologies • Subject to cost-effectiveness criteria
Driving Efficiency in Industrial
• Highly technical – Credibility and experience are important
• Relationship-driven – Often requiring years to establish – Requires “boots on the ground”
• Time sensitive – Budgeting cycles, plant down time
• Mostly custom assessment – Small or simple projects can be prescriptive
• “Lumpy” delivery of savings
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BPA Energy Smart Industrial Program
• Cascade is the “Program Partner” –Collaborative program design (in 4 mo.!) –We provide staff and management
• 104 public utilities signed up • Just entering 4th year • Delivered 42 aMW (370 million kWh)
during first 2 years • Received the 2012 AESP award for
“Outstanding Achievement in Energy Program Design or Implementation”
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Coverage Considerations
© 2012 Cascade Energy, Inc. 19
80% of Load in Top 20 Utilities Boots on the Ground Coverage
Common Mistakes……
• A “build it and they will come” mentality – You have to go get them! Boots on the ground.
• Excess complexity, time or risk for end user – Includes sign-up, project approval & closure
• Wild swings in program funding, design or requirements – Industrials need a reliable partner
• Disconnect between funding, rigor & accountability – You pay for accuracy & accountability
• Trying to make everything prescriptive – Each facility, process & system is unique
• Underemphasizing relationship & credibility – Often requires years, don’t mess it up!
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Things to Consider During Planning
• Are you targeting energy (kWh) savings or peak demand (kW)?
• What is your target for cost of acquisition? – Example: $1.5 million / aMW = 17¢/kWh – Industrial is HIGHLY cost-effective
• What is your target for penetration? – Example: 0.5% to 1% per year
• Types of industry & geographical considerations – An accurate inventory of industrial energy users is very
helpful • Can you include behavioral approaches?
– Work with utilities, regulatory agencies, etc. to include
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Questions or Discussion?
Marcus H. Wilcox, CEO, P.E. Cascade Energy, Inc. [email protected] 509-524-8621
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