Concurrent Session: Industrial Sector Priorities Pursuing Major Industrial Opportunities

1
Concurrent Session Industrial Sector
Priorities Pursuing Major Industrial
Opportunities
CEE Winter Program Meeting January 16-17,
2008 Long Beach, CA
2
Objectives

• Review energy trends in the industrial sector
• Summarize CEE industry program accomplishments
  and priorities
• Discuss goals/next steps

3
Industrial Sector Is a Big Opportunity
U.S. industry represents

• 37 of U.S. natural gas demand
• 29 of U.S. electricity demand
• 30 of U.S. greenhouse gas emissions
• More energy use than any other single G8 nation
• Large opportunities for
• Energy reduction
• Emissions reductions
• Fuel flexibility

• 32 quads of energy
• gt200,000 sites
• 14.3 million jobs
• 5,900 billion in shipments
• 980 billion in exports

4
Baseline Energy Consumption (CA)(Source
California Industrial Existing Construction
Energy Efficiency Potential Study, May 2006)
5
Industrial Sector CEE Coverage
CEE Initiatives Motors Motor Mgmt. Motor
Systems Compressed Air Pump
Systems Transformers Water/Wastewater
Fired Heaters 31
Motor Systems 23
Steam 26
Process Cooling2
Facilities 10
Other 4
Electro-chemical4
6
Decision-making Criteria for CEE Efforts in the
Industrial Sector

• Relevance to members
• Alignment with CEEs mission
• Technical potential
• Indicators of market change
• Key stakeholder relationships

• Other potential assets
• Level of effort required
• Makes use of CEEs unique role
• Fills a gap
• Time frame

7
Session Context
8
Premium-Efficiency Motors
9
Premium-Efficient Motors Initiative

• Launched in 1996
• Based on EPAct 1992 scope of motors
• Aligned with NEMA PremiumTM in 2001
• For motors covered under EPACT
• Forty-seven participants in 2006-7
• Majority offer prescriptive programs for 1-200 hp
  motors
• Custom programs for larger motors and motor
  systems

10
Scope of Covered Products

• CEE Specification
• 1 200 Hp
• Low-voltage
• General-purpose

• NEMA Premium Specification
• 1-200 Hp
• Low-voltage
• General- purpose
• ----PLUS----
• 250 500 Hp
• Medium-voltage
• Special definite purpose

11
Major Accomplishments in Motors

• Revised CEE Premium-Efficiency Motor Initiative
  to include a guidance specification for large,
  low-voltage electric motors (250-500 hp)
• Released the 2007 Motor and Drive Program Summary
  describing the program offerings of 47 CEE
  members
• Available on CEEs website www.cee1.org.
• Current motor research
• Impacts to programs of the recently enacted
  federal minimum efficiency standards for motors
• Exploring medium-voltage, special and definite
  purpose motors
• Exploring 50hz motors (most commonly found in
  Europe) given limited baseline information and
  industry proposed performance levels.

12
2008 Priorities

• Prepare for implementation of Energy Independence
  and Security Act
• Anticipate motor standards impact on industrial
  market and on programs.
• For example
• Develop best practice repair guidance for
  programs
• Review energy performance and market readiness of
  advanced motor technologies
• Develop consistent language to facilitate
  customer education

13
2008 Priorities

• Monitor proposed tax credits for motors prior to
  the new standards going into effect.
• Purchasers of qualified energy efficient motors
  would be allowed a credit in an amount equal to
  15 per horsepower of qualified energy efficient
  motors placed in service by the taxpayer during
  the taxable year.
• Potential implications
• Encourage end-use consumers to invest in premium
  efficiency
• Encourage replacement rather than extend the life
  of inefficient motors

14
Motor Management Motor Decisions MatterSM

• A national campaign designed to improve the way
  industrial motor repair/replace decisions are
  made by promoting the financial and performance
  benefits of sound motor management policies to
  industrial managers
• Increase industrys awareness of motor management
  opportunities
• Increase demand for NEMA PremiumTM motors best
  practice motor repair
• Encourage the market to engage in motor planning
• Collaborate nationally to enhance local
  effectiveness

15
MDM Sponsors

• Efficiency Program Administrators
• Advanced Energy
• BC Hydro
• ComEd, a division of Exelon Corporation
• LIPA
• MidAmerican Energy Company
• National Grid USA
• NYSERDA
• NW Alliance
• NSTAR Electric Gas
• PGE
• SMUD
• SCE
• WI Department of Administration
• Xcel Energy
• Supporting Organizations
• U.S. Department of Energy

• Motor Manufacturers
• ABB Inc.
• A.O. Smith Electrical Products Company
• Baldor Electric
• Emerson Motors
• GE Industrial Systems
• Regal-Beloit Corporation
• Rockwell Automation / Reliance Electric
• Siemens Energy Automation
• TECO-Westinghouse Motor Company
• Toshiba International
• WEG Electric Motor Corporation
• Trade Associations
• CDA, Inc.
• EASA
• NEMA

16
Major Accomplishments in Motor Management

• CEE accelerated sponsor delivery of the Motor
  Decisions Matter campaign via annual conference,
  spotlight calls, webinars, and a regional meeting
  in Austin.
• 4 Spotlight Calls Xcel Energy, PGE, SCE, NStar
  NGrid
• 2 Educational Webinars
• Increase Profitability Through Motor Management
• Jump Start Customer Conversations with MDM Tools
• CEE worked with members individually to help them
  leverage the resources and relationships that MDM
  has cultivated over the past six years. CEE
  worked with industrial program staff from
  Southern California Edison, Austin Energy, and BC
  Hydro

17
Major Accomplishments in Motor Management

• CEE assisted the editors of trade and business
  publications to develop 16 articles describing
  the benefits of premium-efficiency motors, motor
  management and the MDM campaign. These
  publications have a combined circulation of
  157,100 readers
• www.motorsmatter.org (in 2007) received over
  600,000 hits with 23,000 unique visitors

18
2008 Priorities

• Continue to Implement MDM Phase 3
• Expand delivery of Campaign message
• Increase level coordination and collaboration
• Develop sponsor participation guidelines
• Identify integration opportunities
• Position the campaign to respond to new standards
• Prepare for post Phase 3 transition

19
Motor SystemsMunicipal Water and Wastewater
Facilities
20
Water/Wastewater Initiative

• Objective Increase awareness of and demand for
  energy efficiency within the municipal water and
  wastewater sector
• Strategy To build a template of nationally
  consistent tools and messages for members to
  incorporate into their programs and to deliver
  nationally

21
Current Projects and the Initiative

• ENERGY STAR Benchmarking Field Test
• Education at Operator Level
• Forum for programs
• Way to coordinate on national level
• ECM Framework
• Forum
• Coordinate national research projects, program
  research
• Program guidance
• MA DEP CEE Members
• Awareness
• Funding procedures

22
Benchmarking in Programs

• How can efficiency programs use this tool?
• ComEd, BPA, WI FOE, NYSERDA, TVA, NStar, NGrid
• Process versus results
• Lessons Learned
• Hurdles to Implementation

23
Framework for Evaluating ECMS

• Analyze opportunity to develop guidelines for
  efficiency measures in W/WW
• Methodology
• Industry literature (AwwaRF, WEF, EPRI, EPA)
• Program Documents/Studies (PGE, BC Hydro, WI
  FOE)
• Solicit data on past projects
• Alliant
• CEC
• Efficiency Vermont
• NYSERDA
• SCE
• Snohomish
• Xcel Energy

24
Supporting MA DEP Project

• 14 facilities in Massachusetts
• CEE Members
• Bay State Gas
• Berkshire Gas
• Cape Light Compact
• National Grid
• NStar
• Unitil
• Benchmarking WW
• Using list of ECMs from Framework Project
• Follow through to Funding

25
Priorities for 2008

• Benchmarking Integration
• Expand ECM Framework
• New Technologies
• Project Implementation
• Funding Process
• Supplier Role
• Drinking Water Benchmark

26
Industrial Program Planning
27
What is the opportunity?

• Current environment for broader and deeper energy
  savings is driving members to re-assess
  industrial energy savings in the process area and
  to identify program opportunities.
• identifying cross-cutting, process-specific
  measures
• targeting industrial sub-sectors

28
Process Energy Use by SIC and Application
29
Industrial Sector Energy Use by Sub-sector

• The refining, chemical, paper and metal
  industries together use 71 of total inputs of
  energy for heat, power, and electricity
  generation.

30
Emerging Program Models

• Sector-Specific Approaches
• Northwest Energy Efficiency Alliance is focusing
  on food processing and pulp and paper
• PGE and SCE are focusing on data centers,
  bio-tech, water treatment, agriculture, food
  processing, wineries and oil refining
• NYSERDA is focusing on sector-specific
  strategies, such as hospitality, municipal water
  and wastewater and industry.

31
Industrial Process Energy is an Emerging
Opportunity for Programs

• CEE members are coming together through the
  Industrial Program Planning Committee
• to provide a forum for members to share program
  strategies in the industrial sector
• to tap into the collective experience of member
  industrial efficiency programs (Technical
  Assistance, Custom Projects, Demonstration
  Projects, SPC/Standard Offer)
• to identify and prioritize industrial
  opportunities resources (DOE, EPA)
• to recommend program strategies, as appropriate

32
Priorities for 2008

• Review member program needs and priorities in the
  industrial sector in order to understand where
  the greatest opportunities are for programs
  nationally
• Continue to explore opportunities for an enhanced
  performance specification for distribution
  transformers (particularly low-voltage, dry-type)
• Establish a framework to assess savings
  opportunities by industrial sub-sector and
  cross-cutting technologies (system, process,
  etc.)

33
Priorities for 2008

• Assess available DOE and EPA research and
  resources that could potentially support member
  programs
• Map DOE and EPA industrial program offerings to
  member priorities
• Identify program initiatives aimed at particular
  industrial sub-sectors and/or process
  opportunities
• Explore a process to accelerate market acceptance
  of newly developed industrial technologies

34
Questions?
35
CI Distribution TransformersBack-up Slides
36
CEEs CI High-Efficiency Distribution
Transformer Initiative

• Launched in 1998, serves as a platform for
  programs to build demand for more efficient
  transformers in the commercial and industrial
  sector.
• The initiative consists of four key components
• A voluntary low voltage transformer efficiency
  performance specification
• Guidelines for using cost-of-ownership methods in
  transformer purchases
• Awareness building
• Incentives (where possible)
• Energy Star began labeling low-voltage
  transformers soon afterwards.

37
The Opportunity for an Enhanced Performance
Specification

• The Energy Policy Act of 2005 (EPAct 2005)
  established federal minimum standards for
  low-voltage, dry-type distribution transformers
  which went into effect on January 1, 2007.
• New standard is equivalent to the NEMA
  specifications supported by CEE and ENERGY STAR
  on a voluntary basis since 1998.
• During the last few months of 2006 and early in
  2007, a CEE subcommittee met to explore the
  development of specifications for dry-type, low
  voltage transformers based on the analysis
  developed by DOE during a transformer rulemaking
  process.
• DOE rulemaking in process for medium-voltage
  products.

38
Major Accomplishments in Distribution Transformers

• The CEE Distribution Transformers Committee has
• reviewed DOE research on low-voltage, dry-type
  distribution transformers
• explored the availability of products that exceed
  the new federal minimum standard.
• The Committee is considering an enhanced
  specification for low-voltage products that will
  be vetted with industry later this year.
• The Committee has also identified
  super-efficient performance level for
  distribution transformers that are not currently
  available on the market.