Energy Audit Best Practices - Improve Efficiency & Cut Costs

1. Energy Audit Best Practices 3rd Annual E Source Major Accounts Training Conference and Summit May 9-11, 2007 Boston, Massachusetts Kelly Kissock Ph.D. P.E. Associate Professor Department of Mechanical Engineering, University of Dayton, Dayton, Ohio Principal: Go Sustainable Energy

2. Energy Assessment Experience • Director: University of Dayton Industrial Assessment Center • 25 no-cost assessments per year for mid-sized industries • Clients report saving average of $100,000 per year • Director: University of Dayton Building Energy Center • Energy assessments and analysis for residential, commercial, and institutional buildings • Principal: Go Sustainable Energy • Energy assessments for commercial, industrial, institutional facilities: • Clients include Ford, Corning, Johns Manville, Cargill, Scotts, Delphi … • U.S. D.O.E. Certified Qualified Specialist and Energy Expert • Compressed air • Process heating • Trained energy consulting firms, utilities, industries and government agencies in US and abroad. • Awards: • 2003 U.S. D.O.E Center of Excellence Award • 2006 Ohio Governors Award for Energy Excellence

3. Purposes of an Energy Audit • Provide specific advice on current savings opportunities • Educate client to help manage energy costs over long term • Foster healthy and productive long-term relationship

4. Organizing an Audit • Preparation • Site visit • Analysis and reporting • Follow up

5. Preparation: Define Expectations • Goal to identify and quantify energy saving opportunities - not final design • Work together • Confidentiality

6. Preparation: Data Request • Balance value of data versus client time and perceptions • Typical pre-assessment data: • Two years of billing data • Production/sales/occupancy data • Major energy-using equipment and control systems • Facility layout/plan

7. Preparation • Summarize rate schedule and disaggregate costs • Calculate avoided cost • Verify billing amounts • Graph and analyze trends and relationships • Identify potential savings opportunities • Define roles within assessment team

8. Site Visit • Briefing and billing analysis • Facility walk-through • On-site data collection • Debriefing

9. Initial Briefing: Teamwork • Include upper management • Two stories to promote teamwork • Client’s advantage: you know this facility • Auditor’s advantage: seen lots of facilities • Auditor’s job: identify and quantify savings opportunities • Client’s job: determine if ideas work within multiple constraints • Most productive if work together

10. Initial Briefing: Utility Analysis Structure • Explain rate structure as it relates to client • Show client how to use rate structure to their advantage • Show client how to use billing analysis to understand their processes and facilities Purpose • Develop credibility • Lead client into discussion of processes and facilities

11. Explain Rate Structure As It Relates to Client Service: $95 /month Energy: $0.00824 /kWh (base) $0.012 /kWh (approximate fuel adjustment) $0.00013 /kWh (PIP) $0.0204 /kWh Demand: $13.86 /kW-month Greatest energy use during any 30 minute period Greatest of: 100% of on-peak (weekdays: 8 am to 8 pm) 75% of off-peak (all other times) 75% of max in last 11 months Power Factor: $0.30 /kVAr-month PF charge = {$0.3 x Tan[ArcCos(PF)]} / kW saved

12. Disaggregate Costs • Demand/Energy = 50/50 • Typical • Demand/Energy = 60/40 • One shift operation • High demand cost • Demand/Energy = 40/60 • Three shift operation • High energy cost

13. Determine Cost of Avoided Energy • Avoided cost electricity • Energy: $0.023 /kWh • Demand: $11.23 /kW • Average: $0.071 /kWh • Avoided cost of natural gas • Winter: $10.43 /mmBtu • Summer: $8.43 /mmBtu • Annual: $9.33 /mmBtu

14. Verify Billing Amounts

15. Billing Analysis: Every Picture Tells a Story…

16. Tell Demand and Energy Story

17. Quick Electrical Demand Breakdown • Draw line through winter demand • Below line is “production”, above is “air conditioning” • Ex: Summer = 4,700 kW, Winter = 3,900 kW AC = 800 kW • SEER 10 = 1.2 kW/ton; 800 kW = 670 tons AC

18. Quick Electricity Use Breakdown • Draw line through winter energy use • Below line is “production”, above is “air conditioning” • Ex: Winter = 78,000 kWh/day Average = 83,000 kWh/day • Frac Prod = 78,000 / 83,000 = 94% Frac AC = 6%

19. Quick Natural Gas Use Breakdown • Draw line through summer energy use • Below line is “production”, above is “space heating” • Ex: Summer = 310 Mcf/dy Average = 430 Mcf/dy • Frac Prod = 310 / 430 = 72% Frac Space Heat = 28%

20. Energy Breakdowns By Equipment

21. Use Energy Breakdowns To… • Target areas for investigation • Savings potential is related to load/use • Screen savings opportunities • Estimate annual savings • Imp cost = simple payback x savings

22. Graph Energy vs Temperature R2 = 0.92 CV-RMSE = 7.5%

23. Graph Energy vs Production R2 = 0.32 CV-RMSE = 9.2%

24. Use Graphs To Identify: Departure From Expected Shape R2 = 0.70 CV-RMSE = 7.8% Economizer malfunctioning!

25. Use Graphs to Identify: Non-Production Related Energy Use R2 = 0.01 CV-RMSE = 22.5% Equipment Left On!

26. Use Graphs to Identify: Control Opportunities R2 = 0.59 CV-RMSE = 67.6% Observation Heating Energy Varies by 3X at Same Temp! Discovery Didn’t close shipping doors!

27. Or to Identify Well Controlled Facility… R2 = 0.99 CV-RMSE = 1.1%

28. Other Savings Opportunities • Primary/secondary service • Secondary < 1,000 kVA < Primary • Power factor correction • Capacitors cost about $30 /kVAR • Demand reduction potential • Demand potential if 2+ shifts per day with unbalanced demand

29. Facility Walk Through • Generate list of possible savings opportunities • See everything but focus on energy • Safety • Stay on task • Consolidate ideas and plan next steps • Prioritize savings opportunities • Pursue all opportunities you believe in • Write equations for quantifying savings to guide data collection effort

30. On-site Data Collection • Safety • Make measurements and observations to quantify opportunities • Photographs • Talk to as many levels of personnel as possible

31. Debriefing • Include upper management • Describe savings opportunities • Answer questions • Sell ideas and education throughout site visit

32. Analysis and Reporting • Purposes and Format • Documentation • Delivery

33. Final Report: Purposes and Format • Purposes • Document current energy using practices • Identify and quantify saving opportunities • Format - should support purposes • Executive summary • Savings summary table • Current energy use practices • Savings calculations • Implementation

34. Final Report: Savings Opportunities • Energy savings opportunities • Calculate savings (most important) • Implementation cost (ask for client’s help) • Consider how to handle synergistic effects

35. Final Report: Writing Style • Use first person to identify what you did • Write completely and concisely • Every number and calculation documented • No word removed without losing information • Test • Client able to read, understand, agree/disagree, and modify

36. Final Report: Delivery • How? • Deliver report and ask for feedback • Present report • Revise report • Final report • When? • As soon as possible • Helps client • Reduces errors and omissions

37. Follow-up • Initial phone call to answer questions • Implementation results • Determine which recommendations implemented • Assess overall satisfaction with service • Savings measurement and continued support

38. Summary • Preparation: sets stage for everything that follows • Set expectations • Credibility • Build on your strengths: rate structures and billing analysis • Site visit • Create “team” philosophy • Manage time effectively so you “bring home the bacon” • Communicate and sell ideas throughout assessment • Analysis and reporting • Broad and thorough • Follow up • Learn from feedback

39. Thank you! questions to Kelly Kissock kkissock@udayton.edu 937-229-2852

40. Site Visit • Initial briefing • Include upper management • Agree on agenda and deliverables • Roles: • Your advantage: you know this facility • My advantage: seen lots of facilities • Most productive if work together • My role is identify and quantify possible savings opportunities • Their role is determine if it can work within multiple constraints, much more difficult • Discuss utility analysis • Facility walk-through • Generate list of possible savings opportunities • Safety • Stay on task • Break • Identify all savings opportunities • Prioritize savings opportunities • Write equations for quantifying savings to guide data collection effort • On-site data collection • Make measurements and observations to quantify opportunities • Talk to as many levels of personnel as possible • Debriefing with upper management • Describe savings opportunities • Sell ideas and education throughout site visit

41. Final Report • Purposes • Document current energy using practices • Identify and quantify energy saving opportunities • Format • Executive summary • Savings summary • Energy use practices • Detailed calculations • Energy savings opportunities • Calculate savings • Estimate implementation cost (ask for help) • Calculate simple payback • Consider synergistic effects • Write completely and concisely • Completely, every number and calculation documented • Use first person to identify what you did • Should be able to read each analysis and say yes I agree or no because of this. • Concisely, no word could be removed without changing meaning • Deliver report as soon as possible

42. Outdoor Air Temperature Data http://www.engr.udayton.edu/weather