Reducing Costs & Achieving Superior Plant Energy PerformanceReal-time Information & Best Practices in Energy Management

Presented by

Shiva SubramanyaExecutive Vice PresidentEPS Corp

Introduction to EPS

• Energy & carbon reduction for industrial manufacturing

• Energy Intelligence: right information, right time, right context

• Enabling decisions that:– Improve energy efficiency & reduce costs– Achieve sustainability goals

• Founded in 2001 – HQ: Costa Mesa, CA– 4 regional offices

Industrial Energy Use

U.S. industrial sector

• Third of total energy consumption

• More than residential, commercial, transportation.

Globally

• Half of all energy consumed

USA - 33%

Worldwide

Source: AberdeenGroup 2009

By 2020, U.S. industrial sector will consume 51% of the 2020 baseline end-use energy in the United States

Top Market Drivers

Need to reduce manufacturing costs

Achieve or maintain competitive edge

Be a thought leader in sustainability

Economic / consumer uncertainty

80%

46%

20%

17%

Survey of 240 manufacturers in 2009

“Cost Reduction” outranks “Sustainability”

5 Barriers to Efficiency

• Low awareness & attention

• Elevated hurdle rate

• Capital allocation

• High transaction cost

• Procurement & distributor availability constraints

Traditional Energy Management

McKinsey: energy savings left to human & equipment entropy causes inconsistent results.

Lawrence Berkeley National LaboratoryEquipment entropy is just as common

Some reductions seen… but temporary results

Best Practices

• Determine energy “cost per unit”

• Develop standards & targets

• Implement energy intelligence & management system

– Enterprise-wide energy visibility

• Utilize real-time data & continuous monitoring

Develop Standards & Targets

Establish a baseline

• Breakdown of current “as is” spend (gas, electricity, water)

• Which account for bulk of energy use?

Develop Standards & Targets

Determine “Best in Class” goal

• Identify equipment for greatest savings

• Meter for data gathering & continuous improvement

Energy Visibility & Intelligence

• Invest in automated data collection

• Ensure solution includes – Dashboards

– Alerting & event management

– Analytics

• Integrate into:– Overall corporate strategy

– Operations & maintenance

xChange Point

• Collects data at macro & device level

• Real-time information, enterprise wide

• Includes team of EPS energy experts

exampleEnergy Intelligence system

Utilize Real Time Data

Reveals gaps in plant standards

• Why & how plant is using more energy than required

• Alerts play critical role

• Real-time informationenables proactivesolutions

Continuous Monitoring

Automated, real time energy management

• Continually monitor equipment, processes & personnel behavior to avoid energy savings entropy

– Equipment, controls, personnel change over time

– Alterations in environment

– Addition or removal of equipment

– Degradation in calibration of controls / equipment

• Simple alterations to processes can impact energy reduction practices & lower per-unit-of-production costs

– Staffing, training & maintenance

Continuous Monitoring

Conclusion

Industrial Energy management

• Largely untapped resource

• Historical approaches deliver disappointing results

Key to success:Automated, real-time energy management & Best Practices– Treating energy as a material resource

– Stop entropy at the onset through continuous monitoring

– Modifying processes & human behavior

• For low-cost/no-cost savings opportunities

– Integrating technology & approach into corporate strategy & processes

• Key for persistent & measurable savings

Thank You!Shiva Subramanya

Shiva.subramany@epsway.com

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Energy Intelligence Best Practices Report

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