© 2012 Cascade Energy, Inc. © 2012 Cascade Energy, Inc.

By Marcus Wilcox, CEO, PE

Best Practices in Industrial Energy Efficiency Program Design & Implementation

2

• 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

3

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.

4

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

Refiners

6

A 25,000 hp Motor Draws 20 MW Energy Use Equal to 17,500 Homes

Refrigeration Systems

7

Pumping Systems

8

Process Compressors

9

A 8,000 hp Motor Draws 6 MW

Energy Use Equal to

5,000 Homes

Water Treatment

10

Compressed Air

11

Hydraulics

12

Electric Resistance

13

Just a paltry 550 kW…

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+”

14

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

15

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

16

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

17

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”

© 2012 Cascade Energy, Inc. 18

Coverage Considerations

© 2012 Cascade Energy, Inc. 19

80% of Load in Top 20 Utilities Boots on the Ground Coverage

ESI Program Design

© 2012 Cascade Energy, Inc. 20

Advanced Tracking of Savings

© 2012 Cascade Energy, Inc. 21

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!

© 2012 Cascade Energy, Inc. 22

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

© 2012 Cascade Energy, Inc. 23

24

Questions or Discussion?

Marcus H. Wilcox, CEO, P.E. Cascade Energy, Inc. Marcus.Wilcox@CascadeEnergy.com 509-524-8621