Strategic Energy Management For Resilience
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Improving industrial energy efficiency
investment by establishing an Energy Culture
Kathleen Gaffney
Senior Principal Consultant, Sustainable Energy Use (SUS)
Europe
6th October 2015
Leveraging our global presence in different markets into local
competence to benefit clients for global impact
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400offices
105countries
16,500employees
150years
DNVGL’s purpose to safeguard life, property and the environment
further established with newly consolidated capabilities
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Energy Culture
Energy efficiency efforts over the years, has not been fully
realized, 20-50% savings remains through behavioural changes
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“Two-thirds of the economic potential to improve energy
efficiency remains untapped in the period to 2035”
IEA, WEO 2012
One of the factors that contributed, in
part, to the downward trend of our
energy consumption was the
engagement of the workforce.
Roughly 50% of the savings were achieved by engaging the workforceto improve existing assets.
Up to 20% of the energy we currently
consume can be saved through changing
behaviour”
APAC industrial sector accounts for 40% of energy demand,
technology alone is not sufficient, behavioural changes is also key
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Industry Energy Demand by Subsector in APAC
Source: Energy Outlook for Asia and the Pacific, 2013 (by APEC and ADB)
Energy Efficiency initiatives are facing many barriers, most of
them non-technical and non-financial in nature
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Awareness & behaviour
• Lack of awareness
• resistance to change
• preference for green-washing
Lack of resources
• upfront investment required
• resource constraints (time and/or
money
Lack of (management) commitment
Insufficient data
• inadequate energy data
• information overload and lack of focus
• measurement & verification uncertainty
Inadequate approach
– fragmented energy saving potential
– decentralized know-how / silo-ed
business approach
– focus on ‘components’ rather than
‘systems’
– insufficient focus on non-technical
solutions
Risk aversion
– risk on production /
operation disruption
Energy culture in an organization brings about this behavioural
change through a shared mindset
Energy culture is a shared
mindset within an organization
that supports an environment
conducive to continual
improvement of its energy
performance
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The concept of energy culture in an organization is synonymous
with that of safety culture
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“Manufacturers have used management systems to improve quality
and safety for years. As a result, quality and safety are embedded in
their corporate cultures.
A key barrier to reducing industrial energy use has been the lack of
a management system for energy.”
– Northwest Energy Efficiency Alliance
Similarly, energy culture requires long-term organizational
commitment to be institutionalised
• Research has shown that energy intensive facilities can achieve half of its potential energy
savings of 15% - 25% simply through structural and behavioural changes
• The Energy Culture approach enables companies to realise these savings through targeted
improvement measures that focus on how facilities are run
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Diagnostic - Assess the current status of the energy culture of an organization. Important to calculate baseline
Solution Development - Based on the findings in the diagnostic stage a solution program is developed
Implementation - The solution program is implemented at a pace that is suitable for the organization
Sustaining – A quantitative and qualitative evaluation at regular intervals to close the circle of continuous improvement
Leader’s understanding of human behaviour in energy use is key
to optimize energy efficiency within the organisation
Managers are leaders and need to
• Lead by example
• Create awareness
• Deal with behavioural changes
• Set expectations
• Energize the teams
Objectives
Sustainable energy management is achieved when:
1. Energy management is merged with day-to-day Operations &
Maintenance discipline.
2. Diagnosis and prioritisation of improvement opportunities are pursued
with discipline
3. Employees are engaged throughout the journey with celebration of
successes
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Avenues for realising these savings are identified through four key
collaborative processes with the customer
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Data Analysis Surveys
• Identify the potential savings linked to changing behaviour
• Baseline is calculated using current energy use
• Potential quick-win optimization projects are identified
Interviews Workshops
• Customized surveys are designed
• Surveys enable collection of a large amount of data in a relatively short period of time
• Interviews with the management staff to confirm and complement the survey results
• Identification of non-technical barriers and issues faced in daily work
• Workshops with engineers and operators
• Brainstorm sessions focused on one key problem
Potential for energy savings linked to behaviour changes is
quantified using variability analysis of operational data
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The variability in energy use is
derived from two main sources:
In and output parameters
• Outside temperature
• Raw material
• Type of product produced
Process parameters
• Automation
• Influenced by operators
The energy required to make the same product of the same quality should, in theory, not be
too different across shifts
The differences in human behaviour is a key reason for unexplained discrepancies
Example 1
Quality give away due to variable operator behaviour is
resource and energy inefficient and costly
Only a 10% reduction of
products of too high
quality = €200.000/year
Example 2
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Case Study
06 October 2015
Ungraded
AV15087
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• Bike to work – Car pooling• Let’s Green It team – Tire pressure• Posters campaign
• Energy Audits• Roof insulation• Natural gas cogeneration• Boiler yield improvement
• Own wind turbine• Solar panels • Geothermic heat pump
Our vision : be carbon neutral by 2050The missing part …
DNV GL’s Energy Culture methodology was successfully applied
at Dow Corning’s chemical plant in Belgium
Project: Assessment and improvement of Energy Culture
Client: Chemical plant producing silicone in Belgium with a vision
to be carbon neutral by 2050
Years: 2013 – Present
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About:
The site employs 650 people, have made capital investments in various energy efficiency projectsand identified behavioural change as the next step to achieving greater gains.
Key issues:
Operators see energy as a design and not operational issue
~10% of people surveyed only remember EE initiatives that do not require capital investments
~50% of people surveyed believed that capital investments are necessary to reduce energyconsumption in their departments
Energy Culture is quantified in eight characteristic dimensions
with five maturity levels for each
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0
1
2
3
4
5Visibility
Accountability
Collaboration
Targeting
Commitment
Motivation
Learning
Progress
This approach builds on
Models of behaviour
Theories of change
Experience of
DNV GL’s “Safety Culture”
Energy efficiency expertise
in industry
The 8 dimensions combine principles from Kotter’s 8-step process for
leading change and the Trans-theoretical (stages of change) model
Survey questions and recommendations are made according to
the 8 dimensions
Aimed to touch entire organization
Each question, targeting one of the 8 dimensions, is weighted and given a score
The results serve as the basis for the spider diagram
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Dimension Example question Example actions
Visibility Do you have real-time information regarding your equipment’s energy use?
Make energy reports available to all employees
Accountability Is there an energy manager onsite? Give each energy KPI an owner
Collaboration Is there a forum to discuss energy? Create cross-functional team that work on energy performance issues
Targeting Is energy performance measured and reported in the same way as production/quality?
Put systems in place to identify reasons for energy consumption drift from normal operations
Commitment Do you know if there is a company energy policy? Collect and implement energy improvement ideas
Motivation Is there an improvement box where you can put your ideas for energy efficiency improvement?
Implement incentive programs for all employees linked to energy
Learning Have you received any energy training? Highlight and communicate all energy initiatives
Progress Is there a continuous improvement group within the company?
Create a continuous improvement group focused on energy
Survey results according to the 8 dimensions help the company to
pinpoint key areas of improvement
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Conclusions of diagnostic phase
Commitment and motivation
are the strongest dimensions
Visibility is the weakest
Communication and
measurement need to be
improved
0
1
2
3
4
5Visibility
Accountability
Collaboration
Targeting
Commitment
Motivation
Learning
Progress
Weighted score Ambitious Challenging
Behavioural changes led to a sustained reduction in energy
consumption
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Dow Corning reported that the quick wins identified and implemented in the 1st year yielded 5% energy savings vs. previous year’s consumption
Works Council started to ask about
info. on energy consumption
Engineering department made it
mandatory to study the energy
consequences on all new projects
Safety department offered to
coordinate communication on both
safety and energy culture
Operator reported building heat leaks
Maintenance has synchronized two
compressors
Engineer & operators have rerouted
tracing lines for better efficiency
On-the-ground initiatives Improved oversight and
communication
Establishing an Energy Culture requires the commitment from both
management and the employees to achieve the desired vision
Top down approach
• Dedicated personnel responsible
for energy with a clear mandate,
KPIs and budget
• Energy must part of the agenda
in management meetings
• Willingness to invest in expertise
(internal and external), new tools
and methodologies
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Bottoms up approach
• Committed to change and improve
work processes
• Actively seeking opportunities to
meet energy efficiency objectives
• Courage to recognise failures and
discipline to fix it
• Codify lessons learnt
• Celebrate success as a team
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Together, let’s build and sustain
the right energy culture
Thank you!
