Customer Case Studies Market Based Energy Efficiency - PowerPoint PPT Presentation

Loading...

PPT – Customer Case Studies Market Based Energy Efficiency PowerPoint presentation | free to view - id: 6aa52c-N2UyY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Customer Case Studies Market Based Energy Efficiency

Description:

Customer Case Studies Market Based Energy Efficiency MME/DOE Industrial Energy Efficiency Conference Rio de Janeiro, Brazil Aug. 10, 2011 – PowerPoint PPT presentation

Number of Views:16
Avg rating:3.0/5.0
Date added: 12 February 2020
Slides: 42
Provided by: t69270
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Customer Case Studies Market Based Energy Efficiency


1
Customer Case Studies Market Based Energy
Efficiency
  • MME/DOE Industrial Energy Efficiency Conference
  • Rio de Janeiro, Brazil Aug. 10, 2011

2
FACTS ABOUT DUKE ENERGY
  • 150 years of service
  • 4 million customers
  • Fortune 500
  • 57 billion in assets
  • Stock dividends for 80 years
  • Traded on NYSE as DUK
  • Dow Jones Sustainability Index

3
OUR ASPIRATIONS
  • Decarbonize our power generation
  • Help make our communities the most energy
    efficient in the world
  • These aspirations are grounded in our
    commitments to provide our customers with clean,
    affordable and reliable electric and gas
    services.
  • Jim Rogers
  • Chairman, President and CEO

4
HOW WE WILL ACHIEVE OUR ASPIRATIONS
  • Build new, more efficient generation and retire
    older, coal-fired units
  • Make energy efficiency the fifth fuel by
    implementing our save-a-watt model in each of our
    jurisdictions
  • Modernize our grid by replacing less efficient
    analog technology with advanced digital
    technology

5
THE BUSINESSES WERE IN
U.S. Franchised Electric Gas
Commercial Power
Duke Energy International
Regulated generation, electric and gas
transmission and distribution systems
Unregulated generation
Primarily Latin American assets
Duke Energy Generation Services (DEGS) and Duke
Energy Retail
Duke Energy Carolinas Duke Energy Ohio Duke
Energy Kentucky Duke Energy Indiana
6
U.S. FRANCHISED ELECTRIC AND GAS
  • 5 states North Carolina, South Carolina,
    Indiana, Ohio and Kentucky
  • 50,000 square miles of service area
  • 27,000 MW of regulated generating capacity
  • 4.0 million retail electric customers
  • 500,000 retail gas customers

7
U.S. FRANCHISED ELECTRIC AND GAS NEW BASELOAD
GENERATION
  • Cliffside Unit 6 North Carolina
  • 825-MW advanced coal unit
  • Upon completion in 2012, will replace 1,000 MW of
    older coal units
  • State-of-the-art emissions controls
  • Edwardsport Indiana
  • 630-MW integrated gasification combined-cycle
    (IGCC) unit
  • Upon completion in 2012, will replace 160 MW of
    older coal units
  • Potential for carbon capture and storage

8
NEW NUCLEAR GENERATION
  • We operate three nuclear stations in the
    Carolinas
  • We are the nations third-largest nuclear plant
    operator
  • The Lee Nuclear Station could come on line in the
    2021 time frame

Catawba
McGuire
Oconee
Lee
9
U.S. FRANCHISED ELECTRIC AND GAS RENEWABLE
GENERATION
  • Wind Generation
  • Buying 100 MW of wind capacity from Indianas
    first commercial wind farm
  • Solar Power
  • Installing solar panels to create an 8-MW
    generation network in North Carolina
  • Buying 4 MW of electricity from independently
    owned North Carolina solar farm the states
    largest at 16 MW when completed

10
ENERGY EFFICIENCY
  • Duke Energy is committed to helping customers
    save power and money through energy efficiency

11
SMART GRID
  • Building a smarter power grid is an essential
    part of Duke Energys effort to provide customers
    with affordable, reliable and increasingly clean
    energy.

12
COMMERCIAL POWER
  • MIDWEST GENERATION
  • Approx. 7,550 net MW of unregulated generation
  • Over 50 of generation is dedicated to Ohio
    customers
  • DEGS
  • Manages approximately 5,800 MW of power
    generation at 20 facilities throughout the U.S.
  • Responsible for renewable energy investments
  • Working to build commercial transmission capacity

13
COMMERCIAL POWER RENEWABLE GENERATION
  • WIND GENERATION
  • DEGS has 735 MW of wind power in commercial
    operation
  • SOLAR
  • DEGS entered commercial solar power business in
    early 2010
  • BIOMASS
  • DEGS with AREVA formed ADAGE a joint venture
    that will develop green biopower energy solutions
    for customers in the United States

14
DUKE ENERGY INTERNATIONAL
  • Approx. 4,000 MW of generating capacity
  • 6 countries
  • Argentina, Brazil, Ecuador, El Salvador,
    Guatemala and Peru
  • 4th largest generator in Latin America (based on
    net capacity)

15
OUR COMMITMENT TO THE ENVIRONMENT
  • Pollution control
  • Community programs
  • Address climate change

16
COMMITTED TO SUSTAINABILITY
  • At Duke Energy, sustainability means doing
    business in a way that is good for people, the
    planet and profits

17
Partly Cloudy With a Chance of Rain Forest
  • Scientific field research builds upon legacy of
    environmental stewardship at Duke Energy
  • 8/5/2011
  •  
  • Six Duke Energy employees recently completed a
    week-long scientific expedition to the Rio
    Cachoeira Nature Reserve in Paraná, Brazil, to
    assist with research on the impact of climate
    change on the Atlantic Rain Forest.
  • Two employees from the U.S. and four Duke Energy
    International employees from Latin America were
    selected to participate. This environmental
    education pilot project was sponsored by Duke
    Energys Energy and Environmental Policy
    department in partnership with the Earthwatch
    Institute, a non-profit conservation
    organization.

18
Partly Cloudy With a Chance of Rain Forest
  • Legacy of Environmental Stewardship
  • The purpose of this pilot project is to provide
    Duke Energy with insight into the impacts of
    climate change globally and to understand how
    employee education and engagement on
    environmental issues can benefit the company. The
    environmental stewardship strategy mirrors Dukes
    energy and environmental policy efforts, which
    are focused on securing certainty for our
    customers in a carbon-constrained future.
  • In a world where increasing environmental
    regulation is anticipated, we need to take a
    long-term view on the impact of climate on our
    business, said John Stowell, vice president,
    Energy and Environmental Policy.  Pilots such as
    the Brazilian expedition help employees
    experience firsthand how the issue is relevant to
    our company, our shareholders and our customers.
  • About the Expedition
  • The Atlantic Rain Forest is one of the most
    endangered tropical forests in the world,
    offering a unique opportunity for study. The
    landscape includes new and old growth in
    low-level and elevated terrain. Scientists have
    long known that forests have tremendous potential
    to hold carbon in trees and soils. Duke Energy
    employees helped scientists better understand the
    pressures on forests by engaging in data
    collection and field research.
  • Since the time of colonization, the Atlantic
    Rain Forest had been deforested by 93 percent.
    Due to reforestation efforts, it has since risen
    to 11 percent of forested growth, said Kris
    Knudsen, EHS environmental specialist, who took
    part in the research. Each day wed walk several
    kilometers to the laboratory or up into the
    forest. Experiments included taking measurements
    on hundreds of trees, analyzing when trees
    produce fruit, weighing bee hives to determine
    honey production, collecting leaves and flowers,
    and measuring and weighing dried vegetation that
    had previously been harvested. We also took the
    opportunity to plant new trees.
  • This is the second time that Duke has
    participated in an Earthwatch expedition, said
    Stowell. In 2008, four employees ventured to
    Iceland, studying potential effects of climate
    change on glacier lands. Expeditions like the one
    in Brazil are one way for employees to engage
    directly in stewardship activities on the
    international level and form perspectives that
    they can then use to help Duke achieve
    sustainability at home.
  • The team not only contributed to the science of
    climate study but formed closer working
    relationships with employees across our company.
    For additional information and photos of the work
    by the Brazilian team, view the slide
    presentation(PDF) (photos courtesy of Kris
    Knudsen).

19
Energy Efficiency Plan
  • What is Duke Energys Energy Efficiency Plan?
  • Duke Energy is committed to finding new ways to
    help your business address rising energy costs
    with environmentally sound, low-cost options. Our
    Energy Efficiency Plan is a new regulatory
    approach to energy efficiency. The plan supports
    the development of energy efficiency conservation
    programs to help our customers save money and
    energy. By using less energy, we can help keep
    energy rates lower and reduce the need to build
    additional power plants.
  • Features Benefits
  • Provides all customers with new Energy Efficiency
    programs, including energy assessments and
    incentive rebates, making access to energy-saving
    equipment easy and affordable.
  • Reduces electricity consumption, helping Duke
    Energy avoid building new generation facilities.
  • Represents an important departure from
    traditional energy efficiency regulatory models
    where utilities are compensated based on how much
    they spend rather than the results they produce.
    Under the plan, Duke Energy will only be paid for
    verified energy reductions.

20
Energy Efficiency Plan
  • How It Works
  • Duke Energy will assist customers in saving
    watts rather than relying solely on building new
    power plants to meet energy demands.
  • Duke Energy will provide all customers with
    energy efficiency programs to help them conserve
    energy.
  • After four years, the energy efficiency programs
    are projected to displace the need for 1,700
    megawatts (MW) of capacity, or about 745,000
    megawatt hours. As the results from new energy
    efficiency programs are realized, the company
    will retire older coal plants, significantly
    reducing emissions. This MW reduction lessens the
    need for new power generation and helps keeps
    rates lower.
  • The cost associated with implementation of our
    Energy Efficiency Plan will be shared among all
    customers. Through active participation in these
    program offerings some large business
    customers could see up to a 15 percent reduction
    in their electric bills.
  • Some Duke Energy industrial customers and
    qualifying large commercial customers in can opt
    out of the program if theyve developed their
    own energy efficiency programs or intend to do so
    in the near term.

21
CONSERVATION AND DEMAND RESPONSE PROGRAMS
  • Large Business Energy Assessments
  • Program offers three levels of Assessments
    On-line, Off-Site, On-site
  • Smart aver Nonresidential Incentive Program -
    Prescriptive
  • Program offers defined incentives to
    nonresidential electric customers to help
    offset incremental cost differences between
    standard and high-efficiency equipment
  • Smart aver Nonresidential Incentive Program -
    Custom
  • Program offers customers financial assistance for
    projects involving more complicated or
    alternative technologies, or those measures which
    are not covered by other prescriptive incentive
    offerings. Available to all assigned customers,
    not just schools
  • PowerShare
  • Program offers customer incentives for providing
    capacity in emergency and economic constrained
    times

22
DEVELOPING A SUSTAINABLE ENERGY PLAN
  • How can I improve my companys energy efficiency?
  • Develop a sustainable energy plan (SEP)
  • A critical step for success
  • Make sure you understand the who and what of
    the plan
  • Who will champion the plan and make
    implementation decisions?
  • What financial criteria will be used to evaluate
    opportunities?
  • Attend our SEP workshops, offered twice annually
    in your state/region
  • Establish benchmarks and goals based on current
    performance
  • Benchmark metrics can be total energy or based on
    unit of production, square footage, per student
    or employee, etc.
  • Energy reduction goals both short-term and
    long-term objectives

23
SMART AVER ENERGY ASSESSMENTS
  • Energy Assessments Offerings
  • On-line assessment free
  • Available through the Business Services Newsline
  • Tools You Can Use
  • Benchmark data by business segment
  • CI energy efficiency recommendations by end use
    and segment
  • Facility Assessment Wizard
  • The Facility Assessment Wizard provides
    recommendations tailored to your business or
    industry
  • Recommendations address lighting, HVAC, energy
    management systems, boilers, process heating and
    cooling, etc.

24
SMART AVER ENERGY ASSESSMENTS
  • Energy Assessment Offerings (cont.)
  • Off-site assessment no charge for customers who
    have not opted out
  • An off-site assessment is a conference call with
    the customer to help you identify
    energy-consuming equipment and energy efficiency
    opportunities
  • The customer is provided a worksheet
    questionnaire for collecting facility information
  • A phone-based interview, typically one to two
    hours, is conducted with the customer by an
    assessor
  • At the conclusion of the interview, the customer,
    assessor and Duke Energy decide if an on-site
    assessment is warranted
  • If not, the assessor prepares a report and
    reviews the recommendations with the customer

25
SMART AVER ENERGY ASSESSMENTS
  • Energy Assessment Offerings (cont.)
  • On-Site Assessment Available to customers who
    have not opted out
  • 3,000 for a one-day on-site analysis and
    report
  • 600 per additional day on-site
  • The on-site assessment follows the phone-based,
    off-site assessment.
  • Additional data is gathered, and measurements are
    taken during the on-site work
  • The assessor compiles the report and submits to
    Duke Energy for review
  • The report is presented to the customer for
    review, and a live meeting or face-to-face
    meeting is scheduled to step through the results
  • Customers can recover their portion of the costs
    dollar-for-dollar when they use Smart aver
    incentives (i.e., for every dollar of incentive
    they are eligible for, they will receive two
    dollars up to the cost of the assessment).
  • Note
  • Customer costs are based on Duke Energy paying
    for approximately 50 of the total cost varies
    but approximately 6,000 plus 1,200 per
    additional day.

26
SMART AVER ENERGY ASSESSMENTS
  • What is included in the On-Site assessment
    report?
  • The report includes an extensive executive
    summary of recommendations and supporting
    information, including
  • Energy conservation measures describes each
    opportunity
  • Implementation costs estimates equipment and
    labor requirements
  • Annual energy savings estimates projects
    utility bill savings
  • Smart aver incentives Prescriptive and Custom
    Incentives
  • Financial metric simple payback or internal
    rate of return
  • The report will also identify demand response
    opportunities and savings from participating in
    PowerShare if applicable.

27
SMART AVER INCENTIVE PROGRAM
  • Offers incentives to Duke Energy nonresidential
    electric customers to help offset the
    incremental cost differences between standard and
    high-efficiency equipment
  • Incentives typically do not exceed 50 of the
    incremental cost difference
  • Helps move the market to more efficient equipment
  • Increased demand results in lower costs as
    retailers and distributors stock more energy
    efficient equipment
  • Two Programs Prescriptive and Custom
  • Smart aver Prescriptive includes incentives for
    standard high efficiency equipment (motors,
    pumps, HVAC, lighting, etc.)
  • Smart aver Custom provides incentives for high
    efficiency equipment not addressed through the
    prescriptive program

28
PRESCRIPTIVE PROGRAM
  • Five groupings of equipment types
  • Lighting
  • HVAC (cooling)
  • Includes thermal storage, chillers
  • Motors / pumps / variable frequency drives
  • Foodservices equipment
  • Processes
  • Roll out portfolio of approximately125 measures
  • Equipment eligibility can be found on each
    application
  • Frequently Asked Questions and more details can
    be found at www.duke-energy.com.

29
SMART AVER CUSTOM INCENTIVES
  • What are Custom Incentives and why do we offer
    them?
  • Smart aver Custom Incentives offers incentives
    for energy efficiency measures not addressed by
    the Prescriptive Incentives
  • Proposed energy efficiency measures may be
    eligible for a Custom Incentive if they reduce
    electrical demand (kW) and/or save electrical
    energy (kWh)
  • Custom Incentives are offered to ensure all
    cost-effective efficiency measures are addressed
    by our incentive program and give our customers
    more opporutnities to implement these measures

30
SMART AVER CUSTOM INCENTIVES
  • What are examples of Custom Incentive
    applications?
  • Nonprescriptive lighting measures such as
    reflectors
  • Thermal improvements to the building envelope
    roof and wall insulations, upgrades to windows
    and doors, etc.
  • On-demand ventilation systems
  • Energy management systems
  • HVAC tune-up initiatives
  • Energy recovery systems
  • Energy-saving process upgrades
  • Retro-commissioning of existing buildings
  • Compressed Air Systems

31
POWERSHARE
  • PowerShare is Duke Energys brand name for
    commercial and industrial Demand Response
    programs.
  • What exactly is Demand Response?
  • Changes in electric usage by end-use customers
    from their normal consumption patterns in
    response to changes in the price of electricity
    over time, or to incentive payments designed to
    induce lower electricity use at times of high
    wholesale market prices or when system
    reliability is jeopardized.
  • Federal Energy Regulatory Commission
  • Demand Response offers customers an incentive to
    curtail energy load during periods of high
    demand.

32
Why do we offer Demand Response programs?
  • Can be counted towards Reserve Margin
    requirements. Reduces need to build plants or
    purchase capacity in the marketplace.
  • Example 1
  • Projected System Load 10,000 MW
  • Reserve Margin requirement 15
  • Total Capacity Requirement 11,500 MW
  • Less Available Generation 10,000 MW
  • Required Market Capacity Purchases 1,500 MW
  • Example 2
  • Projected System Load 10,000 MW
  • Reserve Margin requirement 15
  • Total Capacity Requirement 11,500 MW
  • Less Available Generation 10,000 MW
  • Less PowerShare 100 MW
  • Required Market Capacity Purchases 1,400 MW
  • (Assuming market capacity price of 25/kW
    savings to company from avoided capacity
    purchases 2,500,000!)

33
Why do we offer Demand Response programs? (cont.)
  • For the effect on system peak and improved
    reliability

34
What options are available?
  • PowerShare Mandatory
  • 30 minutes advance notice of event
  • 100 hours per year maximum interruption
  • 10 hours per day max
  • 10 interruptions per year max
  • Capacity Credit - 3.50/kW-month (42/kW-yr)
  • Energy Credit - 0.10/kWh
  • Non-Compliance Penalty - 2/kWh
  • PowerShare Generator
  • 30 minutes advance notice of event
  • 100 hours per year maximum interruption
  • 10 hours per day max
  • 10 interruptions per year max
  • Capacity Credit - 3.50/kW-month (42/kW-yr)
  • Energy Credit - 0.10/kWh
  • Non-Compliance Penalty - 2/kWh
  • PowerShare Voluntary
  • Hourly event prices are posted the day of an
    event
  • Customers have the right, but not the obligation
    to participate
  • There are no penalties for nonperformance
  • Customers get paid for results as long as they
    provide at least 50 of what they nominate
  • Can be combined with PowerShare Mandatory

35
Why should I not opt out of energy efficiency?
  • Simple example of energy efficiency impact to a 5
    MW facility
  • Potential Energy Efficiency Projects
  • Convert T-12 Lighting to T-8
  • Replace Standard Motors with Premium Efficiency
    Motors
  • Install Control System
  • Take advantage of new PowerShare offer

35
36
ENERGY EFFICIENCY BILL IMPACT (cont.)
  • Smart aver incentives and PowerShare demand
    response programs create significant additional
    value (4-22) for very little cost.

36
37
ENERGY EFFICIENCY BILL IMPACT
10 Year NPV Bill Savings (1000s)
Do Nothing
Participate
38
Benefit to Duke Energy
  • DETERMINATION OF ENERGY EFFICIENCY RIDER
    ADJUSTMENT
  • Energy Efficiency Adjustments (EEA) will be
    applied to the energy (kilowatt hours) billed of
    all rate schedules for each vintage as determined
    by the following formula
  • SAW Non-residential Adjustment Non-residential
    Avoided Cost Revenue Requirement
    Non-residential Lost Revenues / Forecasted
    Non-residential kWh Sales (excluding opt out
    sales) for the Rider billing period
  • Where
  • Non-residential Avoided Cost Revenue Requirement
    (Non-residential Demand Side Management Program
    Avoided Cost Revenue Requirement X 75)
    (Non-residential Energy Efficiency Program
    Avoided Cost Revenue Requirement X 55)
  • Participation true-ups After the first year, the
    Rider will include a true-up of previous Rider
    amounts billed to reflect actual customer
    participation in the programs.
  • Measurement and verification true-up EMV
    activities and results will be included in a
    mid-term EMV-based true-up process that will be
    reflected in Vintage Year 3 Rider EE collections.
    A final EMV true-up reflected in Vintage Year 6
    Rider EE collections will incorporate all EMV
    studies completed since the mid-term EMV
    true-up. EMV results will include measure-level
    savings adjustments and net-to-gross analysis. In
    addition, the mid-term and final true-ups will
    incorporate the most recent EMV results in the
    avoided cost true-up, the lost revenue true-up,
    and the earnings cap true-up.

39
Benefit to Duke Energy Shareholders
  • Earnings cap true-up In the sixth year a true up
    will be billed, if applicable, to refund amounts
    collected through the Rider in excess of the
    earnings cap, in accordance with the following
    levels of achievement and allowed return on
    investment.
  • Percentage Actual Return on Investment
    Cap
  • Target Achievement on Program Costs
    Percentage
  • gt90 15
  • 80 to 89 12
  • 60 to 79 9
  • lt 60 5

40
Case Studies in Industrial EE
  • Hickory Chair
  • https//my.duke-energy.com/portal/server.pt/gatewa
    y/PTARGS_0_0_853_827_1044_43/http3B/Mydukecontent
    .duke-energy.com/duke/collateral/case-studies/1101
    56-hickory-chair-case-FINAL.pdf
  • IBM Research Triangle
  • https//my.duke-energy.com/portal/server.pt/gatewa
    y/PTARGS_0_0_853_827_1044_43/http3B/mydukecontent
    .duke-energy.com/duke/collateral/case-studies/1002
    25-ibm-case-study-draft1.pdf
  • Kimberly-Clark
  • https//my.duke-energy.com/portal/server.pt/gatewa
    y/PTARGS_0_0_853_827_1044_43/http3B/mydukecontent
    .duke-energy.com/duke/collateral/case-studies/kimb
    erly-clark.pdf

41
Tactic Description Target Segments Target Contact Sales Strategy
E3 Energy, Environment and Economy (Lean) Tri-assessment program. -2011 Goal SC 5 to 10 NC 15 to 17 OH/KY 5 10 IN - TBD Enterprise Solution Federally supported and partially funded simultaneous assessment for Energy Efficiency, Waste Minimization and Lean Manufacturing. Unique customer value proposition drives prescriptive and custom energy measures as a part of a holistic sustainability approach -Manufacturing including supply chain leveraging of large OEMs into small and medium sized businesses. -Energy/Engineering manager Sustainability/HSE Manager/Director Plant manager -Supply Chain Manager/Director - Government and community leaders -Lead with State MEP organizations targeting community wide launches. -Provide Duke account management support into potential client identification and qualification.
Blueprint for Energy Savings 2011 Goal 25 - New Webinar Participants 6 - Energy plans developed. Enterprise Solution Sustainable Energy Management Plan development -Two 6 hour webinars and two follow-up progress report-out sessions. - 5 to 10 Targeted single client Energy Plan Drafting Workshops Manufacturing -Energy/Engineering manager Sustainability/HSE Manager/Director -Supply Chain Manager/Director -Lead Web-based E-blasts and promotion via account managers during customer Business Planning sessions
Targeted High Yield Energy Efficiency -2011 Goal Collect 100 of top 100 customer data and 50 of all LB Manufacturing Customer data Conduct 6 webinars with minimum of 15 participants each Enterprise Solution Through Customer Business Planning Process collect and populate Salesforce database with key data on high energy demand industrial systems Mine Data to identify prospective high value targets for Smartaver incentives including but not limited to Compressed Air Systems, Lighting, VFDs, Chillers HVAC Manufacturing -Energy/Engineering manager Sustainability/HSE Manager/Director -Supply Chain Manager/Director -Lead with Web-based E-blasts and promotion via account managers during customer Business Planning sessions -Offer Targeted Webinars and connection with trade allays through trade associations such as AEE, ASHRAE, SEEA etc.
About PowerShow.com