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Reducing Cost through Integrated Power and Automation
Reducing Cost through Integrated Power and Automation
Larry O’BrienResearch Director
ARC Advisory [email protected]
OutlineOutline
The Cost of PowerHow Well is Power Managed in Today’s Plants?How Well is Power Managed in Today s Plants?The Business Value of Integrated Power & AutomationEnabling TechnologiesKnowledge/Cognitive ManagementWh t D th F t H ld?What Does the Future Hold?
2© ARC Advisory Group
The Cost of PowerThe Cost of Power
Oil Prices Have Declined, BUT…Power Prices Have Increased and Will Continue To Do SoMY Electricity Bill Hasn’t Gone Down, Has Yours?
3© ARC Advisory Group
Industry and Its Role in Power ConsumptionIndustry and Its Role in Power Consumption
Industry is Number One Consumer of Total EnergyIndustry is Number Two Consumer of Power Behind B ildingsBehind BuildingsIndustry Generates a Significant Amount of its Own Power
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Manufacturers and Processors Have The Most To Gain By Saving Energyy g gy
• Produces approximately 30% of U.S greenhouse gas emissions
• Accounts for more than 35% of U.S.natural gas demand
• Energy is key to economic growth in domestic manufacturing I d t
Transportation
Energy Use
manufacturing
• Many companies have been unable to pass higher energy costs on to their customers, which has impacted their profit margins negatively
Industry33.4%
p27.2%
negatively
• Having an Efficient Energy Management Strategy is Part of the “Triple Bottom Line”: Social, Economic, and Environmental
Commercial17.9%Residential
21.5%• As an Environmental Compliance Strategy,
Improved Energy Management is More Cost Effective Than an “End of Pipe” Solution
• It’s Sound Business Practice
21.5%Source: US Department of Energy
5© ARC Advisory Group
How Well is Power Managed in Today’s Plants?How Well is Power Managed in Today’s Plants?
Energy Ranks High on the List for Concerns to Manufacturers (Even Some of the Raw MaterialsManufacturers (Even Some of the Raw Materials Cost is Related to Power Generation).
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Major Energy-Intensive IndustriesSustainability impacts ALL!Major Energy-Intensive IndustriesSustainability impacts ALL!
1000
Industrial Energy Intensity vs. Energy Consumption
Petroleum
1000
ty GD
P) Energy-Intensive
Industries
Chemicals
PaperPrimaryMetals
Nonmetallic Mi lWoodTextiles/Apparel
100
Inte
nsi
td
Btu
/$
Mining
Food Processing
Minerals
Tobacco/Beverages
Furniture
Leather Machinery and Computers
Wood
TransportationFabricated Metals
Textiles/Apparel
Plastics/Rubber
Printing
10
En
erg
y
ho
usa
nd
Energy Consumption (Trillion Btu)
Leather Machinery and ComputersElectrical
PrintingMiscellaneous
1
10 100 1000 10000
(Th
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Energy Consumption (Trillion Btu)
Source: US Department of Energy
Where Does the Power Go?Where Does the Power Go?
Process Heating is Number One Energy ConsumerMachine Drive is Number TwoMachine Drive is Number Two
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Source: EIA
Power Management Philosophy Behind Many of Today’s Plants is……Power Management Philosophy Behind Many of Today’s Plants is……
Energy Management Initiative Status
Leaders Program in place
Competitors
Plan to implement
Investigating
Followers
No plans underway
Don't know
0% 25% 50% 75% 100%
9© ARC Advisory Group
Energy Efficiency GainsEnergy Efficiency Gains
Leaders25% or more
20% to 25%
15% to 20%
Followers
Competitors 10% to 15%
5% to 10%
None
Don't know
0% 25% 50% 75% 100%
Don't know
Leaders make more consistent gains
10© ARC Advisory Group
Integration of Power and Automation: Basic PremiseIntegration of Power and Automation: Basic Premise
Automation and Electrification are Still Separate Islands of FunctionalityIslands of FunctionalityMotor Control Centers are Also Largely SeparateOperators Have No View Into Power Side, Cannot Identify or Take Advantage of Savings OpportunitiesFew Suppliers Offer True Capability to IntegrateFew Suppliers Offer True Capability to Integrate the Worlds of Power, Motor Controls/Drives, and Automation Systems in a Single Environment That Allows End User to Make Intelligent DecisionsAllows End User to Make Intelligent Decisions About Energy Management
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ARC Definition of Integrated Automation and Power ManagementARC Definition of Integrated Automation and Power Managementgg
Integration of various power related systems, devices, equipment, and power related data withdevices, equipment, and power related data with the process automation systemDriven not just by functionality, but an overall strategy to implement a collaborativestrategy to implement a collaborative manufacturing environment with a holistic approach to power and energy managementEMS, Intelligent Motor Control Centers, Switchgear and Electrical Equipment, Intelligent Field Devices, Optimization, Asset Management, p , gInformation is Provided According to ARC Concept of Information in Context, Right People, Right Time with the Most Effective Visual
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Time, with the Most Effective Visual Representation
Automation & Electrical SystemsAutomation & Electrical Systems
Long tradition of separate roles, separate domains in the plant, separate requirements. Many commonalities in system requirements: high reliability and availability, safety, etc. When you look at most people’s depictions of a DCS/PAS, the don’t take power management into accountdon’t take power management into account.
Business Planning & Supply Chain Management
Business Process
Transactions
Business Work
ProcessesC a a age e tTransactions Processes
Collaborative Automation System
S95.01 Definition
Production DefinitionProduction Definition
Production Capability
Production Plan
Production Information
Manufacturing Work
PProduction
Real-time Control &
Events
ProcessesManagement Transactions Production Management
BatchContinuous Logic
S8
8 S
tru
ctu
res
Sensors, Actuators, and Logical Devices
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TTP
F
F
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L
TTP
F
F
F
L
F
L
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F
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TTP
F
F
F
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F
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TTP
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TTP
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LLogical Devices
Power & Electrical are Part of Production Resources in CPS Power & Electrical are Part of Production Resources in CPS
Enterprise/BusinessOperations
Inbound Supply Chain& Logistics
CRM
Operations Management
Shipping, Outbound
R&D, Product/Plant
Collaborative Production
Environment
a age e
Supply Chain& Logistics
Design and Engineering Production
Resources
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Process Automation Power & Electrical
Collaborative Power And Control SolutionsCollaborative Power And Control Solutions
♦ C-PACS articulate the convergence of multiple disciplines on a common platformdisciplines on a common platform
♦ C-PACS specify functions under a single environmentenvironment
♦ C-PACS promote the value of the common communications infrastructure
♦ C-PACS recognize the value of standards in automation
♦ C-PACS demonstrate the importance of a single power, and control platform
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C-PACS – The Foundation for CMM
E t i BusinessBusiness Process ComponentsS l Ch i M
Business Process ComponentsS l Ch i MEnterprise
SystemsBusiness Processes
Service-Based S i B d I f t t ISA 95
Supply Chain ManagementProduct Lifecycle Management
Supply Chain ManagementProduct Lifecycle Management
W k Fl
Operations ManagementOperations Management
Architecture Service-Based Infrastructure
ProductionFactory O ti
Mfg Ops &Mfg Ops &ProductionProduction
Factory Factory
ISA 95 Models
Work Flow
Production ProcessesOperations
Systems & Services
Production Production ProcessesProcesses
Product Product DefinitionDefinition
Production Production ManagementManagement
AutomationAutomation
POWER: Power Meters, Circuit Breakers, Transfer Switches, Intelligent Motor Control Centers,…
OPC-UA
PA
CS
Control & Device Networks: Real-Time
16© ARC Advisory Group
Automation: Motor Drives, Logic, Motion, HMI, Sensors, Actuators,…
C-P
C-PACS Model
Device ControlNetwork Network
Logic HMI
Logic HMI
Process Control
Common Tagging & Single Database
Common Development Pl tf & C fi ti
Motion
Control
Power
MotionNetworks
Single DatabasePlatform & Configuration Tools
Process Control
PowerM i
i ifi l i i
Motion
17© ARC Advisory Group
Domain Specific Solutions Are Converging to Improve Performance
Business Value of Integrated Power Management and Automation SystemsBusiness Value of Integrated Power Management and Automation Systems
In many cases the potential savings can equal 10 percent of total power consumptionThis can equal the entire amount of power a plant purchases from outside electricity generating sourcesYou could be selling power back to the grid!Again, value goes beyond cost of energy – integrated power and automation gives improved visibility into entire scope of plant operations that leads to improved early event detection, increased reliabilityincreased reliabilityProcess Industries are particularly heavy power users (see heating applications in total industrial power consumption) so the opportunity is quite largeoppo y q gIn many cases this is unexplored territory and there are a lot of opportunities that immediately present themselvesLarge investments are not required to realize benefits
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g q
Integrated Power and Automation is Enabled by IEC 61850Integrated Power and Automation is Enabled by IEC 61850
IEC 61850 is an Ethernet based solution that has the capability to provide tight integration betweenthe capability to provide tight integration between Automation and Power systems.IEC 61850 does for protection and process measurement in a substation what fieldbus ismeasurement in a substation, what fieldbus is doing for process control and multivendor device standardization. Enhanced diagnostics.
19© ARC Advisory Group
IEC 61850 Brings Power of Digital Networking to Power ManagementIEC 61850 Brings Power of Digital Networking to Power Management
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IEC 61850 Benefits, ChallengesIEC 61850 Benefits, Challenges
Benefits: Challenges:Reduced implementation time• Application Development• Integration
IEC61850 is relatively new• Will continue to evolve
Product AvailabilityGrowing but remains somewhat
Reduced Wiring Costs
Easier equipment upgrade
• Growing, but remains somewhat limited
IEC61850 compliance does not yet guarantee interoperability• Different interpretations of standards
by developersEasier application migration to new technology
Less vendor lock-in
by developers• Standard and product improvements
and updates are ongoingLearning curve – new techniques and terminology• BUT long term training reduced due
Better, more uniform engineering and tools• Standardized naming semantics• e.g. Failure analysis, maintenance,
system simulations
• BUT, long-term training reduced due to common data models and communication techniques
Network design is critical• Ensure networking expertise is
included on project teams
21© ARC Advisory Group
system simulations included on project teams
Intelligent Motor Control Centers and Variable Speed DrivesIntelligent Motor Control Centers and Variable Speed Drives
Motors consume 64% of all energy consumed in industry.industry.Most industries can significantly reduce their energy costs just by addressing inefficiencies that reside in their motor loadsreside in their motor loads.Rule of thumb: In a single year, motors can consume up to 10 times their initial cost.
Source: Schneider
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Intelligent Motor Control Centers and Variable Speed DrivesIntelligent Motor Control Centers and Variable Speed Drives
Source: Schneider Electric
23© ARC Advisory Group
Source: Schneider Electric
Intelligent Motor Controls Example: AC Drives & Energy Savings in Pipeline ApplicationsIntelligent Motor Controls Example: AC Drives & Energy Savings in Pipeline Applications
In oil and gas pipeline applications it is very common to control the output of variable torque loads such as those found in pumps fans and blowers by throttling their input orfound in pumps, fans, and blowers by throttling their input or output. This method, however, is inefficient The application of AC drives to large fans and pumps to control flow by modulating their speed can produce y g p psignificant energy savingsThe higher the level of motor operating time and the larger the variation in load duty cycles, the greater the savings One pipeline customer expects to save $5 million annually in transportation expenses and achieve reduced pipeline shutdowns that can cost up to $750,000 per shutdown when the pipeline is running at full capacitythe pipeline is running at full capacity
24© ARC Advisory Group
Intelligent Field Devices and Plant Asset ManagementIntelligent Field Devices and Plant Asset Management
Use of intelligent Coriolis Meters to improve fuel gas measurement (see Emerson Example)Integrating electrical and motor control centers into PAM systemscenters into PAM systemsIntegrating machinery health managementAre you making the right measurements? AreAre you making the right measurements? Are they visible?
25© ARC Advisory Group
Optimization, Simulation, Process ModelingOptimization, Simulation, Process Modeling
Coordinated control between assets (boilers, turbines and other equipment)Allocate loading of boilers and turbines for optimum
tig p
operationsDevelop process models• So that the control strategies “know” each asset, what they’re
capable of, and how they interact with each otherFeed steam and electricity use information to the plant energy system for predictive controlEstablish automated, real-time connections with electricity providersy p• To include electricity buy and sell factors into the energy
management modelsAdjust process setpoints to least, but safe, costImplement Tie-Line ControlImplement Tie Line Control• For prioritized load shedding and purchased power optimization• Real-time price schedules
26© ARC Advisory Group
Source: Emerson Process Management
Knowledge Management IssuesKnowledge Management Issues
More information for the operatorpMore information for MaintenanceHow to use this information effectively?Do you have an accurate picture of your plant’s energy usage? D h th i h tiDo you have the in house expertise necessary to provide you with a good baseline?Work practices must be changed to adapt
27© ARC Advisory Group
Future Trends & StrategiesFuture Trends & Strategies
More products and solutions will become availableavailableIntegrated MAC/MEC approach more common on large projectsPenetration of 61850Growth in power auditing and consultative/lifecycle services for powerconsultative/lifecycle services for power and automation integrationExpanded worker roles and new workExpanded worker roles and new work practicesA good opportunity for both end users and
li
28© ARC Advisory Group
suppliers
Thank YouThank YouFor more information, contact the author at
[email protected] or visit our web pages at www arcweb com
29© ARC Advisory Group
or visit our web pages at www.arcweb.com