MEEA’s Technical
Webinar Series:
Strategic Energy Management in the Midwest: A
Process Efficiency Case Study with Xcel Energy
Presenters: Chad Gilless – EnerNoc
Kerry Klemm – Xcel Energy
Thursday, November 8th 2012
MEEA’s Role in the Midwest
• Nonprofit serving 13 Midwest states
• 10+ years serving states, energy offices, utilities and communities
• Staff of 25 in Chicago
• Actions
– Designing & Administering Energy Efficiency Programs
– Evaluating & Promoting Emerging Technologies
– Regional Voice for DOE/EPA & ENERGY STAR
– Coordinating Utility Program Efforts
– Delivering Training & Workshops
– Advancing Energy Efficiency Policy
– Promoting Best Practices
The EE Story (Future)
• Future: Finding a new portfolio
– Lighting savings going down
– Some program saturation
– Need ‘new’ programs
• Whole home (HPwES, air sealing, etc)
• Systems work (HVAC systems, smart homes, etc)
• Behavior programs (changing the customer habit)
• Education
• Building Energy Codes (adoption, training and
compliance)
– Challenges
• Cost effectiveness (non-energy benefits not counted)
• More complex (contractors, systems, etc)
Proprietary and Confidential
C&I Strategic Energy Management
Chad Gilless – Practice Lead, Strategic Energy ManagementMember, US Technical Committee for ISO 50001
November 8, 2012
EnerNOC Utility SolutionsEnerNOC provides a comprehensive suite of demand-side management (DSM) servicesto utilities and grid operators worldwide through our Utility Solutions offering.
Program Implementation
• Demand Response
Consulting Services
• Market potential assessments for demand
2
• Demand Response• Turnkey, outsourced C&I DR• DR program support• AutoDR technology and services
• Energy Efficiency• C&I program implementation• Program administration• Building commissioning services• Energy management software and
analytics• Strategic Energy Management (SEM)
• Market potential assessments for demandresponse, energy efficiency, and distributedresources
• End-use forecasts• Integrated resource planning• Load research and analysis• Pilot and program design• Program implementation support• Evaluation, measurement and verification• Regulatory support• Technology assessments and
demonstrations
The EE story so far…
Retrofits
OperationalEE
…UniversallyAccepted
…GainingWider
Acceptance
1
2
3
EE
BehavioralEE
Acceptance
…EmergingGame-Changer
2
3
Equipment is an understandable first stepEnergy Data
EquipmentEquipmentChangesChanges
ProcessProcessImprovementsImprovements
4
ImprovementsImprovements
OrganizationalOrganizationalApproachApproach
Process is the next level
EquipmentEquipmentChangesChanges
ProcessProcessImprovementsImprovements
5
Organization
ImprovementsImprovements
OrganizationalOrganizationalApproachApproach
The Organization drives lasting improvement
EquipmentEquipmentChangesChanges
ProcessProcessImprovementsImprovements
6
Energy Data
ImprovementsImprovements
OrganizationalOrganizationalApproachApproach
Strategic Energy ManagementThe importance of SEM is that it successfully applies the Behavioral Model for EnergyEfficiency in the Industrial context.
SEM Basics
1)Executive Sponsorship
2)GoalSEM
Strategy
PeopleMetrics
7
Energy Data3)Team
4)Action Plan
SEM
Mgmt.Systems
PeopleMetrics
Example Utility Program AbbreviationsCEI (Continuous Energy Improvement)PE (Process Efficiency)PEM (Practical Energy Management)
Steps to Implement Utility SEM Programs
4. SavingsDetermination
3. ProgramManagement
1. Ramp-Up
Marketing, Recruitmentthrough Channels, and
Application Process
Including ProjectVerification
8
2. Customer
Implemen-
tation
EnergyManagementAssessment
StrategicPlanning
ImplementEnergy
Program
Monitor &Support
Performance Tracking &Reporting
Customers save from both traditional measures and from SEM – theseimprovements can be measured and acquired
Develop facility energy models with statistical and engineering analysis
Traditional equipment measures can be backed out of total savings
Total Savings From SEM
9
Years
10%
20%
30%
0
Pe
rce
nto
fE
ne
rgy
Wast
ed
1 2 3 4 5 6 7 8
TotalSavings
• Number of Customers: ~30 engaged, 14completed CEI program
• Energy Savings: 68,000,000 kWh electricity
• Project Budget: $10,000,000 over five years
• Third Party Reports Available:http://neea.org/reports/
• Utility Program Tools Created & Available:http://www.energyimprovement.org/index.html
Case Study: Northwest Energy Efficiency AllianceNEEA produces 68 million kWh third party validated saving from Continuous EnergyImprovement (CEI) deployed in Food Processor Initiative.
10
http://www.energyimprovement.org/index.html
• Major activities:
• Turned program around through restructureand redesign
• Created Playbook of CEI Program Tools
• Improved energy savings from 5.6 millionkWh to 68 million kWh
• Produced 14 satisfied customers practicingCEI: http://vimeo.com/24789397
• Represented program findings and expertisein ISO 50001 creation
• NEEA Industrial Team nominated and wonACEEE Champion of Efficiency in 2011
“Chad and his team turned the Food ProcessorInitiative around. After inheriting a floundering
program, they redesigned it to have clearcustomer progress indicators and metrics,
restructured the teams to drive results, and addedenergy savings focus to produce reliable results
for NEEA and our funding utilities. They and theirteam are outstanding resources to NEEA as well
as national leaders in the area of Strategic EnergyManagement.”
- John Wallner, Senior Industrial Sector Manager
Types of Approaches− SEM training, ~1 day in length
− Cohorts of customers, year-long workshop series
− One-on-one customer consulting, 1-2 year engagement
Start with a Pilot− Start small to prove the concept
Proven Utility Program ApproachesWays that utilities can leverage SEM today.
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− Start small to prove the concept
− Confirm delivery model best suited for the utility
− Allows utility to build trust with stakeholders and regulators
Sample Utilities with Programs− NEEA / NorthWestern Energy – Montana SEM Cohort
− Energy Trust of Oregon – SEM Pathway to ISO 50001
− BC Hydro – SEMP with Transportation and Pulp and Paper sectors
− Xcel Energy – Process Efficiency
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Chad GillessPractice Lead, Strategic Energy Management
Member, US Technical Committee ISO 50001
Xcel Energy Industrial Process EfficiencyXcel Energy Industrial Process Efficiency
Kerry Klemm Product Portfolio Manager
Suite of Industrial Offerings
� Process Efficiency holistic concierge-style industrial program for large, engaged customers
� Full suite of project-specific programs for other industrials
� Lighting� Lighting
� Motors
� Compressed Air
� Heating/Cooling
� Custom
� And more
� New programs recently launched
� Turn Key Services
� Self Direct
What is Process Efficiency?
� Targets large industrial processes
� Must produce a widget – SIC code
� Provides additional resources, driven by � Provides additional resources, driven by the magnitude of the conservation opportunities
� 1 GWh or 4,000 Dth minimum potential
� Available in Minnesota and Colorado
Process Efficiency Deliverables
� Promote sustainable energy-efficiency behavior in large industrial customers
�Address business practices, operations, behavior and technical projectsand technical projects
�Data drives priorities; identifies opportunities
� Customize support to match customer needs
� Develop long-term energy management plan and drive implementation
Phased Approach
� Multi-year holistic view of energy management & projects
� 3 phases
Customer decides whether to Phase 2
Scoping
Phase 1
Identification� Customer decides whether to proceed at each phase
� MOUs formalize commitment
� Customized when possible to match customer needs & overcome specific barriers
Scoping
Phase 3
Implementation
Identification
Phased Implementation
� Phase 1 – Identify
� Recognize opportunities, verify potential through EnVinta & high-level walk-through
� Involves executive level decision makers� Involves executive level decision makers
� Top 5 business priorities
� Phase 2 – Scope and Define
� Expand on opportunities to integrate energy efficiency into business practices
� Meter, monitor and engineer to clarify technical projects and map energy flow
� Technical study of opportunities (equipment upgrades, process changes, business practices)
Phased Implementation
� Phase 3 – Implement
� Xcel Energy creates custom proposal with bonus structure to support and drive customer’s energy management plan
� Actual savings calculated through prescriptive and custom rebate programs, roll up to holistic parent
� Annual & system optimization bonuses
Benefits of Process Efficiency
1. Long-term partnership that delivers integrated approach versus project-by-project support
2. Results in sustainable energy-efficiency strategy by looking at both practices and projects
3. All projects under one umbrella simplifies administration and avoids missing rebate opportunities
4. Xcel Energy has flexibility to provide unique resources to match specific customer needs
5. Potential to earn bonuses for exceeding annual goals or improving entire systems
6. Study funding approach ensures data drives projects and future study funding
Process Efficiency Historical Achievements – MN Electric kW
10,000 $20,000
-
2,000
4,000
6,000
8,000
2007 2008 2009 2010 2011
kW
Sa
ve
d
$-
$5,000
$10,000
$15,000
Pro
gra
m $
/kW
kW saved $/kW
Process Efficiency Historical Achievements – MN Electric kWh
50,000,000
60,000,000
$1.20
$1.40
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
2007 2008 2009 2010 2011 est.
kWh
Sa
ved
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
Pro
gra
m $
/kW
h
kWh saved $/kWh
Process Efficiency Historial Achievements – MN Gas
2,000,000 $0.60
-
500,000
1,000,000
1,500,000
2,000,000
2007 2008 2009 2010 2011 est.
Th
erm
s Sa
ved
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Pro
gra
m $
/th
erm
Therms saved $/therm
Ideal CustomersSignificant sizerequirements
(1 MW)Open minded
forward thinkersSpecificenergy
goalEnergy champion
Low hanging fruit already picked
Sustainabilityfocus
Upper management
supportLocal decisionmaker
Committed to LT planning
Embrace external
partnership
Rebate is not only driver
Availablecapital funds
What’s Next?� Joint offering with other area utilities � Leveled-off growth
� New customers� Deeper savings from existing customers� Modified offering for lower potential customers
� 1-2 GWh or <10,000 Dth likely savings� Lower cost, less on-site, alternate metering
� Address behavior savings� Similarly designed program for commercial customers� Opt-out customer risk/opportunity� ENERGY STAR® integration; ISO 50001� Completed formal program evaluation 2012
Questions & Discussion
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