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Transcript of Webinar: Energy Data - The New Profit Lever
THE NEW PROFIT LEVER ENERGY DATA
WEBINAR brought to you by:
August 6, 2014
Speakers
Erik Becker SVP
Janie Jefferies-Freer President
Alisdair McDougall Analyst
Agenda
1 | Discuss why firms are investing in energy management software
2 | Review where your organization can look for savings
3 | Demonstrate dashboard examples and partner case studies from eSight
4 | Q&A
Got questions?
Use the Question Tool in Your Webinar Dashboard
Q&A at the end of the presentation Slides & recording will be sent following the webinar
Presented by Alisdair McDougall
5
Energy Data – The New Profit Lever
Alisdair McDougall, Verdantix
Alisdair McDougall is an Industry Analyst in the Energy Practice at Verdantix’s London office. In this role he leads Verdantix research on energy management software and industrial technologies. His previous experience includes working for the energy and sustainability team at Peter Brett Associates, a development and infrastructure consultancy. Alisdair holds a Masters in Energy and Environmental Engineering from the University of Cambridge, as well as a Bachelor of Engineering from the University of Cambridge.
Agenda
• Why are firms investing in energy management software?
• Where should your organization start looking for savings?
Agenda
• Why are firms investing in energy management software?
• Where should your organization start looking for savings?
There are four main drivers for firms investing in energy management
Economics
Customers
Sustainability
Legislation
How firms normally think about these four drivers
10
Customers
Sustainability Legislation
Economics
How firms should actually think about these drivers
Customers
Sustainability Legislation
Economics
Cost savings are driving investment in energy management
Source: Verdantix The State Of Global Corporate Energy Management
How do you cut costs if you can’t see where they are?
Access to good quality granular data is the first step to uncovering previously invisible opportunities
Energy management is increasingly becoming data driven
Data technology investment Site-specific Integrated energy systems
Data governance level Departmental Enterprise
Energy data size Small, patchy Big, global
Tactical energy management (1990 – 2007)
Strategic energy management (2015 – 2020)
Energy data feed frequency Low frequency Near real-time
Data aggregation & consolidation
Portfolio & strategic risk management Organizational requirements
Source: Verdantix Smart Innovators: Big Energy Data Analytics
The second step is organising all of this newfound data. Corporates should invest in a data management solution to avoid a new headache
Don’t just take our word for it. Your peers are already placing significant focus on improving energy data collection and reporting
Source: Verdantix The State Of Global Corporate Energy Management
Access to energy data aids with multiple strategic and tactical business objectives
CEO • Achieve competitive advantage on energy consumption • Efficiency Business Planning
CFO • Minimize financial risk • Business efficiency
CSO • Innovate and lead on energy & sustainability
COO • Minimize operational costs • Maximize operational efficiency
CIO • ICT Infrastructure energy efficiency • Maintain performance
Energy/ Facilities
• Minimize costs • Streamline billing • Energy asset efficiency
CSR
• Report progress on energy metrics • Streamline reporting process
EH&S
• Streamline compliance process • Achieve certification
Logistics
• Logistics energy asset efficiency • Asset inventorying
Procurement
• Manage contracts • Minimize procurement risk
Supply Chain
• Report supply chain energy metrics • Streamline data collection
Source: Verdantix Smart Innovators Energy Management Software
Combining data, analytics and some good old fashioned brain power will result in your firm finding potentially significant savings
Agenda
• Why are firms investing in energy management software?
• Where should your organization start looking for savings?
Initially, firms should focus on three main savings opportunities
1. Energy efficiency opportunities within existing portfolio
2. Savings from better managing energy data for internal and external reporting purposes
3. Supply side savings associated with optimizing procurement strategies and better managing existing utility contracts
Energy efficiency opportunities within existing portfolio
Lack of a Strategic Energy Management Strategy
2) Inactive relationship with third parties - FMs not contracted to deliver savings - Remote monitoring and management not
considered - Lack of consultation with systems integrators
over potential support services
1) Ignorance of full breadth of system capabilities
- Incompatible scale of delivery equipment - Unmaintained delivery equipment - Under-utilization of BMS functionalities - BMS not integrated with other systems
4) Ad hoc or non-existent optimization procedure - Lack of maintenance programme - Ad hoc system commissioning and software
upgrades - No performance targets
Condition Challenges
Potential Building Energy Efficiency Savings
Source: Verdantix Toolkit: Business Case For Building Energy Management Software
Savings from better managing energy data for internal and external reporting purposes
Immature Reporting Function
1) High level of compliance risk - Vulnerable to increasing number of
regulations relating to building energy performance (CRC, NGERS, etc.)
- Subject to administrative concerns around capture and reporting of correct data
3) Non-central management of energy data - Reliance upon multiple spreadsheets with
disparate data - Time-consuming collection and analysis of
useful information
2) Rising stakeholder pressure to disclose - Not equipped to handle uptake of
voluntary sustainability reporting (CDP, GRI, etc.)
- Increasing stakeholder requirements to disclose energy data to reap brand benefits and satisfy RFPs
Condition Challenges
Potential Reporting Savings
Source: Verdantix Toolkit: Business Case For Building Energy Management Software
Supply side savings associated with optimizing procurement strategies and better managing existing utility contracts
Ineffective Energy Supply Management
2) Uncorrected utility billing errors - Duplicate, incorrect, or anomalous utility
bills that lead to overpayment - Inability to easily identify mistakes due to
lack of estimated bills
1) Non-optimal tariffs - Higher than ideal electricity prices based
on firm’s consumption profile - Not able to take full advantage of load
management opportunities such as demand response
3) Inability to accurately forecast spend - Not equipped to account for dynamic
conditions such as electricity prices - Low-quality data as a result of partial,
missing or untimely meter readings
Condition Challenges
Potential Supply Side Savings
Source: Verdantix Toolkit: Business Case For Building Energy Management Software
$24,533,784
$22,038,310
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Tota
l Cos
ts ($
)
Year
BAU Total Costs Vs. Total Costs With Software
Costs To Business Without Software (BAU) Costs To Business Including Cost Of Software
Combining all of these opportunities can result in significant savings
Total savings including the cost of software is
$9,531,041
Calculate your baseline for energy consumption and spend and continue to monitor it taking into account price fluctuations and portfolio growth. The true value of your investment can only be appreciated if you can compare life with software and life
without software.
Source: Verdantix Toolkit: Business Case For Building Energy Management Software
The list of potential benefits from investing in energy management software does not stop there either
Reducing CAPEX by improving asset
utilization
Reducing OPEX through improved management and
maintenance regimes
Reducing external data assurance costs
Strengthening carbon risk
management and accounting
Managing on-site generation and load
management programmes
De-risking decisions on energy efficiency
investments
Enhancing brand value through
communicating sustainability performance
Engaging employees on energy and
environmental issues
Improved employee comfort and working
conditions
Formalizing energy management programmes
throughout an organization
Strengthening operational risk
management
Better employee utilization
Walmart is looking to use energy efficiency projects to positively impact the bottom line
• In 2013, Walmart committed to producing or procuring 7 billion kWh of renewable energy annually by 2020 along with reducing energy consumption by 20%
• It is estimated that both of these initiatives once fully implemented will save Walmart $1billion annually in energy savings
• In 2013, Walmart recorded profits of $17 billion at a 3.6% profit margin
• To generate an extra $1 billion in profit (Walmart’s expected annual energy savings) Walmart would have to increase revenues by $28 billion
Key Lessons Learned
28
• There are four main drivers for firms investing in energy management
• Customers, Economics, Sustainability, Legislation
• Access to quality granular data is the first step to uncovering opportunities
• Combining data, analytics and some good, old-fashioned brain power will result in your firm finding potentially significant savings
• The list of potential benefits from investing in energy management software is limitless, extended across all departments within your organization
Urjanet Verdantix Webinar 2014 Janie Jefferies-Freer, President [email protected] 847-701-2340
Janie Jefferies-Freer
Janie Jefferies-Freer is the President for eSight Energy Inc. Originally from Cambridge, UK, Janie joined the eSight Energy Group in 2004 where as Sales Director, she was responsible for managing eSight’s EMEA sales and marketing teams. Janie relocated to the US in 2008 to establish eSight’s U.S. HQ and is now based full time from Chicago where she oversees the company’s growth and strategic direction in the Pan-American market. In 2013, eSight Energy Inc. won the British American Business Council’s award for Innovative Company of the Year and was also named an Enterprise Smart Grid leader by Groom Energy. More recently in 2014 eSight was named as a leader in Energy Management software by Verdantix.
• eSight Energy is a global energy management software (EMS) company
• Founded in 1998 our HQ for the US is in Chicago IL
• Our EMS solution, eSight is in use in over 30 countries globally
• We have the most comprehensive energy analysis, and dashboard solution combined available, worldwide
• eSight is suitable for use by clients of any size or sector
• The software is available as a SaaS solution, or installed to site
About eSight Energy
Challenges of energy projects
• There are many challenges involved with
implementing an energy project
• One of the biggest is how to get the data
• There are multiple utilities (electricity, gas, water)
• There is often little or no submetering
• Projects to implement submetering can be costly,
resource heavy and time consuming
• They can be seen as complex
• This is often all to off-putting and companies
choose to do nothing rather than take this on
Challenges of energy projects
• However, the problem is:
• Without any visualization of data there is no way
to get a handle on what’s being used
• Energy costs are often one of your organizations
heaviest operating costs
• Without awareness, energy usage often rises,
and rises…
• You can’t manage what you can’t measure
• So what if this data was literally “served up” to
you?
Urjanet – Data Made Simple
• With a simple subscription fee, our clients get access to their data
• This could be energy data associated with bills or meters interval data
• Day+1 data means that clients have access to their information a day
behind, instead of 45 days behind
• Actions on normal bill processes at this rate mean that it’s often too
late to take action
• The data also provides key demand information and trend granular
data
How does an EMS Solution Work?
Exception Report
Optimize Analyze &
Report
Identify Energy Usage
Data Collection
Collect data for some weeks or months
Monitor consumption across site and identify how energy is being used
Analyze data and produce intelligent reports to inform site staff
Optimize the control process, reduce set points, turn systems off and reduce base load
Product automatic exception reports to prevent slip-back or Performance Drift
How does an EMS Solution Work?
0
20
40
60
80
100
120
140
160
180
0 4 8 12 16 20 24
Cons
umpt
ion
kWh
The overall objective is to drive down consumption and costs
How do we use the data we get?
Billing data enables: ü Anomalies to be checked ü Trends to be analyzed ü Comparison with interval data for your own
checks
ü Is your usage rising over time? ü What cost impact does this have on your
business ü Track savings as they are made
How do we use the data we get? – Interval Data
Interval data provides an infinitely wider range of analysis opportunities: 1. Baselining – knowing where I have come
from, means knowing where I should be going 2. Targeting to reduce 3. Monitoring Performance 4. Normalizing for external factors 5. Tracking total savings
Leveraging the data – Some Examples
Leveraging the data – Some Examples
Leveraging the data - Trends
Leveraging the data – What about Dashboards?
The key informa?on can be pushed into individual user dashboards to monitor trends and provide quick access to must-‐have data
Leveraging the Data – What about Dashboards?
“The lights are on but nobody’s home...”
• Monitor out-of-hours and baseload energy use to quickly detect anomalies such as:
• Water leaks
• Machinery left online
• Heating or air conditioning active when not necessary
• Computer stations left on
• Address these anomalies to prevent energy waste
Tip #1 – Baseload Analysis
• In the initial test, Liberty Property Trust used Baseload Analysis to recognize energy waste in out-of-hours periods
• While in their pilot, Liberty identified 5% savings on $30 million utility expense providing payback in 12 months!
• As of October 2012, Liberty has achieved:
ü 17.9% Reduction in Energy
ü $4.6 Million in Savings
ü 48 LEED Projects
ü 98 ENERGY STAR Labels
Tip #1 – Baseload Analysis – Who’s Doing It?
Spot the difference...
• Recognize areas of high usage within your organization
• Monitor the efficiency of machinery and equipment by recognizing abnormal usage and changes in general trends
• Use this information to target areas to undertake efficiency programs, make investments and accurately forecast ROI
Tip #2 – Recognize High Usage
• Bombardier Aerospace used energy management software to monitor energy use at their Dunmurry Plant
• By recognizing high usage they were alerted to faulty solenoid valve in the autoclave cooling circuit
• The cost to fix the valve was $80
ü But realized a cost saving of $160,000 – 15.4% of the site total
Tip #2 – Recognize High Usage – Who’s Doing It?
Set the benchmark... • Benchmark energy use against model sites to emulate successes
• Normalize this information against factors such as degree days to ensure fairness
• Compare energy use against government defined standards to measure how your building should be performing
• Compare sites against each other in a league table to encourage healthy competition!
Tip #3 – Measure Against Best Practice Models
• The American Society of Hematology measured utility consumption against LEED building performance standard
• Active performance management resulted in improved efficiency over the predicted LEED baseline.
• Overall efforts resulted in:
ü 9% reduction in electricity
ü 19% reduction in water usage
ü 40% carbon footprint reduction
45.44
7.61
40.88
7.51
0
20
40
60
Electric Gas KBTU
/ Squ
are foot/
year
Adjusted Energy Model Actual Consump?on
Tip #3 – Measure Against Best Practice Models – Who’s Doing It?
Know your limits... be alarmed!
• Set limits against your energy meters to define tolerance levels
• Alarms will be activated if consumption goes outside of these limits for prompt response
• Quickly be alerted to faulty machinery/equipment through anomalies in consumption or missing data
• Limit energy waste and negative effects on your organization by having the knowledge to respond to problems
Tip #4 – Set Alarms Against Defined Limits
• Carlsberg use range and average alarms to notify them when energy consumption goes outside tolerated levels or deviates from set alarm profiles
• Keeping an eye on high energy and water use, they were able to significantly reduce their usage:
ü Reduced kWh per hectolitre by 14%
ü Reduced site water usage by 10%
ü Reduced effluent costs by 16%
ü Reduced overall consumption by 10%
Tip #4 – Set Alarms Against Defined Limits – Who’s Doing It?
Lead the way... • Promote your energy savings to staff, visitors, customers and the public to encourage their
participation in saving energy
• Convert energy savings into tangible facts to make data more accessible, example:
We’re a health club... We’ve saved enough electricity... To power 100 treadmills
Tip #5 – Promote Your Savings
• The Ricoh Arena, a London 2012 Olympic venue, displays an interactive dashboard in the reception foyer
• The dashboard includes up-to-date energy savings information alongside news, weather and travel feeds
• Staff and visitors can monitor progress and adapt their habits to contribute to further savings
• The arena can promote energy initiatives and the savings made as a result- enhancing its reputation as a socially responsible venue
Tip #5 – Promote Your Savings – Who’s Doing It?
An Energy Management Platform can:
• Reduce energy consumption, costs, & carbon emissions by up to 30%
• Save time in creating energy reports
• Automatically identify anomalies for fast response
• Simply calculate payback and ROI on investments
• Get all of your data into ONE PLACE!
• Normalize data based on external factors that could be affecting usage
• Raise Awareness throughout the organization
…Excel is not a solution!
Urjanet is the world’s first provider of automated utility data as a service. We deliver the Big Energy Data that large enterprises, government agencies, and educational institutions rely on to make smarter
more profitable & eco-friendly energy decisions.
Who is Urjanet?
We provide value across the organization
ACCOUNTING PROCUREMENT FACILITIES & ENERGY MGMT SUSTAINABILITY
Reduce costs through automation
Reduce late fees
Avoid shut-offs
Create enterprise repository of rich energy data
Tariff analysis
Bill validation
Budgeting
Risk management
Energy audits
Efficiency projects
General analysis
Carbon reporting
Tracking greenhouse gas emissions
LEED certification
Investments in alternative energy
Our Solutions
URJANET UTILITY DATA
URJANET METER DATA
URJANET WEATHER DATA
URJANET ALERTS
A single source of multi-site billing data for
electricity, natural gas, and water
A cost-effective way to access detailed
demand-side data without installing sub-
meters
Hourly, site-specific data available for North American
locations
Immediate notifications of energy usage and
accounting deviations based on current and past
billing data
Join us for:
FREE REGISTRATION at urjanet.com/spark-2014
WHO Energy management software and services
professionals, Fortune 500 executives, members of the Urjanet community
WHAT 1.5 day energy conference with speakers,
cocktail reception, awards ceremony, expert panel, Solutions Zone, and more
WHEN October 8-9, 2014
WHERE Georgia Tech Hotel & Conference Center
Q&A
THANKS FOR TUNING IN!
Recording will be emailed to all registrants shortly.