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Presentation 3.2: Demand side energy management Frank Taelman Energy & Maintenance Manager Siemens E-mail: Frank.Taelman@Siemens.com Abstract With Demand Side Energy Management Siemens Industrial Services has created a package of services to provide sustained improvement in the energy efficiency of a production facility while reducing energy consumption. The profitability of a production facility also relies on an inexpensive and reliable supply of power, heating, cooling, and compressed air. The provision of energy, is no more than just a secondary process outside the core competence. Most of all, however, it's a cost factor. Aim is to use energy much smarter, thus increasing productivity. Demand Side Energy Management from Siemens Industrial Services takes a detailed look at the technical and economic aspects of the entire process. This enables us to develop a step-by-step concept to improve energy efficiency in line with the business needs – and then to implement it.
265
Demand Side Energy
Management
Frank Taelman 1|23October 2006
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Agenda
� Benefit and Added Value
� Focus
� The Demand Side Energy Management Concept
� The Attractiveness
� Some References
Frank Taelman 2|23
267
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Benefit and Added Value
Frank Taelman 3|23
0 5 10
Time - years
EnergyCosts
Costs are too high!Costs are too high!Costs are too high!
Let’s do theseenergy projectsLet’s do theseenergy projects
O.K., done, Management asks us to execute other tasksO.K., done, Management asks us to execute other tasksO.K., done, Management asks us to execute other tasks
Management says costs are again too high: where did we put this Audit?Management says costs are again
too high: where did we put this Audit?
We’ve seen itbefore...We’ve seen itbefore...We’ve seen itbefore...
A one shot energy
reduction program
“Yoyo”-effect
Non sustainable
A continuous energy
reduction program
Sustainable
solution5 10
Years
Top Management wants sustainable energy reduction!Top Management wants
sustainable energy reduction!
Energy projects are justa beginning…
Energy projects are justa beginning…
Production, Planning, Logistic, Maintenance: allfind additional costs savings, implemented on a
sustainable basis.
Production, Planning, Logistic, Maintenance: allfind additional costs savings, implemented on a
sustainable basis.
Expansion
Our new plant isreally energy efficient
Expansion
Our new plant isreally energy efficientOur new plant is
really energy efficient
0
EnergyCosts
TechnicalDevelopment
Process modeling and monitoringsaves energy and increases
productivity
TechnicalDevelopment
Process modeling and monitoringsaves energy and increases
productivity
DSEMDSEM
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Benefit and Added Value
Frank Taelman 4|23
Labor against cost price
x % of the detected yearly
energy savings from projects
that are technically and
economically feasible
y % of the realized yearly
energy savings from projects that are technically and
economically feasible
Labor against fixed price
or
daily rate
No cure, no benefit No performance part
268
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Focus
Focus on the complete energy consumption:
• electricity• gas• steam• compressed air• water
Frank Taelman 5|23
ProductionProduction and and EnergyEnergy usageusageProductionProduction and and EnergyEnergy usageusage OUTPUTOUTPUT
• Waste heat
• CO 2
• Emissions
INPUTINPUT
• Purchase
• Distribution
• Generation
EnergyEnergy MonitoringMonitoring and Analysisand AnalysisEnergyEnergy MonitoringMonitoring and Analysisand Analysis
UtilitiesUtilitiesUtilitiesUtilities
Business Business PracticesPractices Operation, Resources, Maintenance, Logistic SubsiOperation, Resources, Maintenance, Logistic SubsidiesdiesBusiness Business PracticesPractices Operation, Resources, Maintenance, Logistic SubsiOperation, Resources, Maintenance, Logistic Subsidiesdies
!
!!
! !
!!!
!
!!
! !
!!!
October 2006
Energy Management: Macro Level
Frank Taelman 6|23
Client : Energy consumer
EnergyQuality
Metering & Monitoring
Energy reporting
Energy Consumptio
n Forecasting
Energy Awareness
Energy Audit
Own Energy Production
Energy Distribution
Equipment Standard
Energy Purchasing
Energy Benchmarki
ng
Energy Legislation
Exploitation of fossil fuels
Research and Development of alternative fuels
Production of
Renewable energy
Energy Production
Energy Transportation &
Distribution
Government
Other energy
consumers
Installation &
Service suppliers
SisterCompany
client
SisterCompany
client
269
October 2006
Reject Power For SIPAPERCIS
Frank Taelman 7|23
Rejects
Fuel Value ~Lower Heating Value
12.000 kJ/kg (TS ~ 55%)
De-inking Sludge
Fuel Value ~ Lower Heating Value
3.800 kJ/kg (TS ~ 65%)
Bio Sludge
Fuel Value ~Lower Heating Value
385 kJ/kg (TS ~ 18%)
Fiber Sludge
Fuel Value ~Lower Heating Value
6.300 kJ/kg (TS ~ 56%)
October 2006
Reject Power For SIPAPERCIS
Frank Taelman 8|23
20MW
40MW
100MW
Rejectsto
Fuel Turbine+
Generator
Fuel
G
50k
tpa
200k tpa
Specialpaper rejectsincinerator
Generalwaste &biomass
unit
Steam ElectricityRejects
Steam Electricity
Preparation Incineration Steam & Electricity production
RejectsUpcyclin
g
Rejects
Rejects
270
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
The DSEM Concept
Frank Taelman 9|23
• Strengths and weaknesses
• Key action points• Benchmarking
• Potential
• Energy map, potential scan
• Project(s) execution
• Performance and performance improvement
monitoring
One2FiveOne2Five
EPS-Energy
potential scanEPS-Energy
potential scan
Project(s)Project(s)
MonitoringMonitoring
(1) Orientation
(2)Analysis
(4)Implementation
(5)
Sustainability
ROIROI(3)
Planning
One2FiveOne2Five
EPS-Energy
potential scanEPS-Energy
potential scan
Project(s)Project(s)
MonitoringMonitoring
(1) Orientation
(1) Orientation
(2)Analysis
(2)Analysis
(4)Implementation
(4)Implementation
(5)
Sustainability
(5)
Sustainability
ROIROI(3)
Planning(3)
Planning
• Projects planning
• Calculation of ROI
Demand Side Energy Management is a concept, not a tool nor a product, in order to:
• control & minimize the energy costs• create energy consumption transparency• increase energy awareness & maturity level
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 1: Orientation
Frank Taelman 10|23
Quick scan One-2-Five measures the energy management level:• holistic method by means of yes/no answers• the energy management & capability level is checked and benchmarked
• result: energy saving potential & critical improvement action setting
271
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 1: Real Case
Frank Taelman 11|23
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 2: Energy Potential Scan
Frank Taelman 12|23
� Analysis of total energy consumption
� List of projects with invest & saving
� Supported by calculations & external suppliers
� According the 6-sigma DMAIC standard
� All projects are technically feasible
� Supported by studies, if needed, from external
companies
272
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 2: Real Case (1/2)
Frank Taelman 13|23
Description Minimum Maximum Minimum Maximum
Optimization of the heat exchanging process 875.000,00 € 1.250.000,00 € 680.000,00 € 850.000,00 €
Install drive for the mixer tank A 15.000,00 € 25.000,00 € 5.000,00 € 10.000,00 €
Optimization of the drive parameters for the mixer tank B 1.000,00 € 5.000,00 € 10.000,00 € 15.000,00 €
Optimization of the lighting 5.000,00 € 10.000,00 € 3.500,00 € 5.000,00 €
Optimization of the operation mode of the mixers in tanks 1 to 6 100,00 € 1.000,00 € 27.000,00 € 33.000,00 €
Correct dimensioning of pump A1Z 10.000,00 € 15.000,00 € 10.000,00 € 15.000,00 €
Install new pump 4EZX 10.000,00 € 15.000,00 € 5.000,00 € 10.000,00 €
Optimization of the compressed air generation 40.000,00 € 55.000,00 € 50.000,00 € 60.000,00 €
Optimization of the energy sent back in the net (power generation) 1.000,00 € 5.000,00 € 5.000,00 € 10.000,00 €
Optimization of the water circuit (4 pumps out) 35.000,00 € 55.000,00 € 50.000,00 € 65.000,00 €
Install drive for the mixer in pulper 1A 3.000,00 € 5.000,00 € 12.000,00 € 15.000,00 €
Install drive pump pulper 7V 1.000,00 € 5.000,00 € 5.000,00 € 10.000,00 €
Optimization of the heat exchanging in the power generation 80.000,00 € 120.000,00 € 165.000,00 € 205.000,00 €
Install drive for the mixer in pulper 3E 1.000,00 € 5.000,00 € 20.000,00 € 30.000,00 €
Automatic shutdown of the pump 4ERT5 5.000,00 € 10.000,00 € 5.000,00 € 10.000,00 €
Automatic washing of the turbine 10.000,00 € 15.000,00 € 40.000,00 € 55.000,00 €
Optimization of the operation mode of the mixers 8 and 9 1.000,00 € 5.000,00 € 25.000,00 € 30.000,00 €
Correct dimension of the degasser 10.000,00 € 15.000,00 € 10.000,00 € 15.000,00 €
Replace mechanical breaks by generators 50.000,00 € 75.000,00 € 40.000,00 € 60.000,00 €
Shutting down fan - € 1.000,00 € 5.000,00 € 10.000,00 €
Estimated invest Estimated yearly saving
Description Minimum Maximum Minimum Maximum
Optimization of the heat exchanging process 875.000,00 € 1.250.000,00 € 680.000,00 € 850.000,00 €
Install drive for the mixer tank A 15.000,00 € 25.000,00 € 5.000,00 € 10.000,00 €
Optimization of the drive parameters for the mixer tank B 1.000,00 € 5.000,00 € 10.000,00 € 15.000,00 €
Optimization of the lighting 5.000,00 € 10.000,00 € 3.500,00 € 5.000,00 €
Optimization of the operation mode of the mixers in tanks 1 to 6 100,00 € 1.000,00 € 27.000,00 € 33.000,00 €
Correct dimensioning of pump A1Z 10.000,00 € 15.000,00 € 10.000,00 € 15.000,00 €
Install new pump 4EZX 10.000,00 € 15.000,00 € 5.000,00 € 10.000,00 €
Optimization of the compressed air generation 40.000,00 € 55.000,00 € 50.000,00 € 60.000,00 €
Optimization of the energy sent back in the net (power generation) 1.000,00 € 5.000,00 € 5.000,00 € 10.000,00 €
Optimization of the water circuit (4 pumps out) 35.000,00 € 55.000,00 € 50.000,00 € 65.000,00 €
Install drive for the mixer in pulper 1A 3.000,00 € 5.000,00 € 12.000,00 € 15.000,00 €
Install drive pump pulper 7V 1.000,00 € 5.000,00 € 5.000,00 € 10.000,00 €
Optimization of the heat exchanging in the power generation 80.000,00 € 120.000,00 € 165.000,00 € 205.000,00 €
Install drive for the mixer in pulper 3E 1.000,00 € 5.000,00 € 20.000,00 € 30.000,00 €
Automatic shutdown of the pump 4ERT5 5.000,00 € 10.000,00 € 5.000,00 € 10.000,00 €
Description Minimum Maximum Minimum Maximum
Optimization of the heat exchanging process 875.000,00 € 1.250.000,00 € 680.000,00 € 850.000,00 €
Install drive for the mixer tank A 15.000,00 € 25.000,00 € 5.000,00 € 10.000,00 €
Optimization of the drive parameters for the mixer tank B 1.000,00 € 5.000,00 € 10.000,00 € 15.000,00 €
Optimization of the lighting 5.000,00 € 10.000,00 € 3.500,00 € 5.000,00 €
Optimization of the operation mode of the mixers in tanks 1 to 6 100,00 € 1.000,00 € 27.000,00 € 33.000,00 €
Correct dimensioning of pump A1Z 10.000,00 € 15.000,00 € 10.000,00 € 15.000,00 €
Install new pump 4EZX 10.000,00 € 15.000,00 € 5.000,00 € 10.000,00 €
Optimization of the compressed air generation 40.000,00 € 55.000,00 € 50.000,00 € 60.000,00 €
Optimization of the energy sent back in the net (power generation) 1.000,00 € 5.000,00 € 5.000,00 € 10.000,00 €
Optimization of the water circuit (4 pumps out) 35.000,00 € 55.000,00 € 50.000,00 € 65.000,00 €
Install drive for the mixer in pulper 1A 3.000,00 € 5.000,00 € 12.000,00 € 15.000,00 €
Install drive pump pulper 7V 1.000,00 € 5.000,00 € 5.000,00 € 10.000,00 €
Optimization of the heat exchanging in the power generation 80.000,00 € 120.000,00 € 165.000,00 € 205.000,00 €
Install drive for the mixer in pulper 3E 1.000,00 € 5.000,00 € 20.000,00 € 30.000,00 €
Automatic shutdown of the pump 4ERT5 5.000,00 € 10.000,00 € 5.000,00 € 10.000,00 €
Automatic washing of the turbine 10.000,00 € 15.000,00 € 40.000,00 € 55.000,00 €
Optimization of the operation mode of the mixers 8 and 9 1.000,00 € 5.000,00 € 25.000,00 € 30.000,00 €
Correct dimension of the degasser 10.000,00 € 15.000,00 € 10.000,00 € 15.000,00 €
Replace mechanical breaks by generators 50.000,00 € 75.000,00 € 40.000,00 € 60.000,00 €
Shutting down fan - € 1.000,00 € 5.000,00 € 10.000,00 €
Estimated invest Estimated yearly saving
Concrete project list from a real DSEM project
All projects are technically feasible
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 2: Real Case (2/2)
Frank Taelman 14|23
The DMAIC methodologyTitel:
Define 4444
Measure 4444
Analyze 4444
Improve 4444
Control 4444
Define Improve ControlMeasure Analyze
Define Phase
OK
What?What is the problem? Make a detailed description based on facts and figures.
Identify the (local) client?Who suffers from this problem?
What are the losses?
Identify the expectations?What are the specifications?
What does the client expect?
Make a visualization (process mapping)What are the interactions?
SIPOC: Supplier - Input - Process - Output - Customer
Borderlines of the project?When started?
Expected milestones
Who is working on the project (project team)?
Define Improve ControlMeasure AnalyzeMeasure Phase
OK
What is the measuring strategy?What data do we need?
How did we defined the measuring strategy? (Brainstorming - Fish bone)
When are the measurements scheduled / executed?
What measurement devices are used? (tolerance)
Measuring system?Is the measurement repeated and confirmed?
Is measurement on different points in time needed?
How is the data collected?Historical data - Manual data collection - ….
Data evaluation?Is the data visualized? (pareto - line diagram - histogram - others - …
What are the temporary conclusions?
Define Improve ControlMeasure Analyze
Analyze Phase
OK
Analyze the data?Are the data in line with the expectations?
Are the figures explainable? (are they in a theoretical possible range)
Is there a relation between the figures?
Are we using uniform measuring units?
Do we use convert factors?
What is the physical phenomenon behind this process?
Influences from: Man - Machine - Method - Material - Environment - Measurement
Is there a constant in the figures?
Do we need techniques to evaluate the figures and to take conclusions? (Statistical analysis - Fish boon -
brain storming - …)
What is the main cause /conclusion?Will this solve the problem?
Why - Why - Why - Why - Why - …
Define Improve ControlMeasure Analyze
Improve Phase
OK
How will we solve the main cause?
What are the alternatives?
What are pro / con's for every alternative?
Do we have specifications for the (technical) solution?
What is the effect on: Quality
Cost
Delivery
Safety
Man
Environment
Is a project description made (lastenboek)?
Do we have sent quotations to possible suppliers?
What are the offers?
Is the proposed solution accepted by the client?
What is the planning?Short term - Long term solution
Installation period
Test period
Documentation received
Education
Define Improve ControlMeasure Analyze
Control Phase
Implement and Communicate
Is the solution standardized?
Are visualizations in place?
Is the documentation updated?
Are the procedures / instructions updated?
Is the preventive maintenance plan updated?
Is the BOM (Bill Of Material) updated? - Install base list
Are the users trained?
Are the audits updated?
Evaluation
Can we close the project?
Can we prove the results with data?
Is the a possibility for horizontal expansion?
How can we speed up this analysis in future?
Sustainability
How can we follow up this issue over time?
What has to be checked - reported?
Define Improve ControlMeasure Analyze
Define Phase
OK
What?
Identify the (local) client?Heat losses: has to be compensated (extra cost)
Heat has to be evacuated via ventilation.
Identify the expectations?Lower energy (gas - gasoil) consumption due to reduced losses.
Lower energy consumption and cost.
Make a visualization (process mapping)
Borderlines of the project?Pipes > 2"; Temp > 50°C
Isolation can be installed during production
Project team: André Poirier - Frank Taelman - Supplier (e.g. Kadant - Johnson)
A lot of pipes from the distribution of steam, thermo oil and condensate are not or bad (damaged)
isolated. This results in energy losses and heat up of space that doesn't need to be heated.
Define Improve ControlMeasure Analyze
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Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 3: Planning Phase
Frank Taelman 15|23
� Priority setting in the project detected by the EPS
� Fine-tuning of the ROI’s of the high priority projects
� Price request towards external suppliers
� Aligned planning with the production & maintenance
� Forecast of energy saving
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 3: Real Case
Frank Taelman 16|23
274
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 4: Implementation
Frank Taelman 17|23
Target DSEM = cutting energy, NOT selling projects
� Projects are executed by the party chosen by the customer
� Siemens can support
� Project management
� Coordination of external partners
� Support of projects executed by the customer itself
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 5: Sustainability Phase
Frank Taelman 18|23
� After the projects have been realized:
� An after calculation is executed
� The real ROI is defined
� If this result is not in line with the expectations,
corrective action will be taken
� This phase grants transparency of savings
� Metering, monitoring & reporting
� On-line metering & monitoring systems
� Frequent energy meeting & reporting
275
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 5: Real Case
� Transparency in the energy consumption
� On-line energy consumption & energy balance monitoring
system + remote energy reporting quarterly
� Regular energy meetings (variances are explained)
� From 0,5 stars up to 4,2 stars on a scale of 5 of the Quick
scan One-2-Five
� Awareness about the importance of energy
� Over 150.000 EUR yearly energy savings per year with less
than 10.000 EUR investments in one year
� Clear definition of over 1.000.000 EUR concrete
economically achievable energy savings projectsFrank Taelman 19|23
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Step 5: Real Case - Transparency
Frank Taelman 20|23
Total electricity consumption [kWh/ ton]
330,00
350,00
370,00
390,00
410,00
430,00
450,00
470,00
jan/04 jan/05 jan/06
Total gas consumption [kWh/ton brutto]
1500,00
1600,00
1700,00
1800,00
1900,00
2000,00
2100,00
2200,00
2300,00
2400,00
jan/04 jan/05 jan/06
kWh/h
Nm³/h
Euro/h
kWh/to
kWh/h
Nm³/h
Euro/h
kWh/to
kWh/h
Nm³/h
Euro/h
kWh/to
GAS
Nm³/h
Euro/h
kWh/h
kWh/to
Streichanlage Kartonmaschine
GTelek. WT1
kW/h
kW/h
K B K
Euro/h
kW/h
K B P
Euro/h
00
0
0.00
0
0
elek. WT2
kW/h
165
0
#NV
#NV
#NV
#NV
NETZ2934 kWh
293 Euro/h
kW/h
elek. RUECK
Euro/h
600
4,59
kW/h
elek. BEZUG
Euro/h
00,00
Euro/h12,59
1320310,58
14728
1317
14692
310
OEL
m³/h
Euro/h
#NV
#NV
kWh/h
Bad Euro/to
Bad kWh/to
kWh/to
kWh/to
kWh/to
kWh/to
kWh/tokWh/to
0 kWh/h
3369 kWh/h
to³/h
to / to
Frischdampf
Bad7,05
GAS
DTKessel
3/4
ηelek
ηelek
22.91
0
276
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
The Attractiveness of DSEM
� Focus especially on reducing the energy consumption,
not only on reducing costs through negotiating energy prices,
nor on selling projects or products
� Wide focus: not only on the board machine, but as well on
power generation, monitoring, subsidies, maintenance,
management, awareness, …
� The process: logical, and every step adds value
� Performance based agreement: the risk is shared by the
customer and Siemens. An optimal working relationship is
needed to achieve the best results.
� Sustainability: through the use of Quick scan One-2-Five,
the critical actions remain active until they are fulfilled.
Frank Taelman 21|23
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Some References
Frank Taelman 22|23
20.000 EUR
750.000 EUR
1.050.000 EUR
125.000 EUR
745.000 EUR
120.000 EUR
545.000 EUR
600.000 EUR
1.000.000 EUR
350.000 EUR
225.000 EUR
Savings
Germany20 daysDSEMFoodSauces
Germany45 daysDSEMMetalAluminum
UK45 daysDSEMPulp & PaperPackaging paper
Automotive
Pulp & Paper
Pulp & Paper
Beverage
Pulp & Paper
Automotive
Pulp & Paper
Pulp & Paper
Pulp & Paper
Beverage
Branch
Netherlands5 daysOne-2-FiveBoard & test liner
Belgium5 daysOne-2-FiveCar
Belgium35 daysEnergy planCoat & paint
Germany200 daysDSEMDecor
Belgium220 daysDSEMSoya milk
Belgium10 daysPump & fan studytest liner
Germany330 daysDSEMWLC
Germany60 daysDSEMDecor
Canada100 daysDSEMImage & decor
Belgium15 daysEnergy planFruit juices
CountryDurationTypeType of product
Cross-industry experience as added value
277
Agenda
Benefit and added
value
Focus
The concept
The attractiveness
of DSEM
Some references
Contact
October 2006
Contact
Frank Taelman 23|23
Frank Taelman
Energy Manager
Siemens NV/SA
Demeurslaan 132
B-1654 Brussels
Belgium
E-mail: Frank.Taelman@Siemens.com
278