The Three Big Questions in the Energy World (and Why They All Have the Same Answer)

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1 The Three Big Questions in the Energy World (and Why They All Have the Same Answer) Paul W. Birkeland Copyright 2014 Global Strategic Energy All rights reserved. 1

2 To Join the Workshop Text PAULBIRKELAN946 to

3 Small Group Exercise Organizing for Energy Savings What are your first steps to realizing energy savings in your facility? Take 5 minutes. Discuss with your neighbors. Come up with 3 to 5 steps. (Handout at your place.) 3

4 4

5 The BIG Questions in the Energy World We all know how to How save energy, BUT do we Where do we find the no-cost improvements that everyone talks about? fund our energy How do we ensure the continued (good) performance of our energy upgrades? improvements? 5

6 How do we fund our energy improvements? ESPC = Energy Savings Performance Contract ESCO Procures $ ESCO Installs ECMs ESCO = Energy Services Company ECM = Energy Conservation Measures $ Paid Back from Energy Savings UESC = Utility Energy Service Contract UTILITY Procures $ Utility Installs ECMs $ Paid Back from Energy Savings In both cases the organization receives energy savings with no upfront costs! 6

7 The BIG Questions in the Energy World How do we fund We all know how to save energy, BUT Very important to the Organization Where do we find the no-cost improvements that everyone talks about? our energy Strategic Energy Management System improvements? How do we ensure the continued (good) performance of our energy upgrades? ESPC/UESC Very important to the ESCO/Utility 7

8 Close Look at Strategic Energy Management Systems (SEMS) 8

9 Three Goals of an EnMS: Credible energy savings Continuous EnMS improvement Persistence Copyright 2014 Global Strategic Energy All rights reserved. 9

10 PLAN Energy Review & Baseline Energy Performance Indicators Energy Targets & Action Plans On Ramp Energy Policy Energy Goals DO Training Communications Documentation Ops Controls Design & Procurement ACT Management Review CHECK Monitoring, measurement, analysis Compliance evaluation Internal Audit Corrective/Preventive Action Copyright 2014 Global Strategic Energy All rights reserved. 10

11 The Fundamental Management Dynamic FUNCTION REPORTS? GETS ATTENTION? Finance Sales Production HR Infrastructure Energy?? SEMS requires energy reporting to top management. Copyright 2014 Global Strategic Energy All rights reserved. 11

12

13 How do we ensure the continued (good) performance of our energy upgrades? THREAT SEMS THREAT RESPONSE Poorly trained operators Poor maintenance Change of organizational focus Unrelated energy-intensive changes to operation Operator competency requirements Operational Controls Maintenance personnel competency requirements Require energy reporting Normalized energy baseline Energy manager retires or moves on Persistent organizational accountabilities 13 Copyright 2014 Global Strategic Energy All rights reserved.

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15 Where do we find the no-cost improvements that everyone talks about? ENERGY AWARENESS STRATEGY TYPICAL ENERGY PROGRAM SEMS Energy Communications Suggestion System Energy Awareness Training Operational Controls Design Reform Procurement Reform Copyright 2014 Global Strategic Energy All rights reserved. 15

16 Bringing It All Together 16

17 ESPC/UESC Process Acquisition Planning ESCO Selection Project Development Project Implementation ESCO Activities Identify Opportunities 6-12 mos Proposed projects & savings estimate Investment Grade Audit (IGA) Design Savings determination 6 mos - 2 years Construction 6 mos - 4 years SEMS Can Start at Any Time Performance Period Maintenance & Support years Copyright 2014 Global Strategic Energy All rights reserved. 17

18 Some Things to Consider: SEMS Team can use the IGA to develop the SEMS Baseline Hire a Certified Practitioner in Energy Management Systems (CP EnMS) Start where you are!!! 18

19 Three Options for SEMS Support Maximizes the Use of Organizational Staff For Organizations Lacking Technical Resource Availability For Organizations With Minimal Available Resources 19

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21 Services: Just Completed: First Federal Government ISO Certification! Strategic Energy Management System (SEMS), ISO 50001, and Superior Energy Performance (SEP) Implementation Cohort Group Implementation Strategic Energy Manager Service Energy Tracking and Modeling Service Training: ISO 50001/Strategic Energy Management System Implementation Investment Grade Energy Baseline Modeling ISO Internal Auditor Training Certified Practitioner in Energy Management Systems (CP EnMS) Exam Prep Training Microgrid Resiliency Analysis and Strategy Development Failed Energy Project Forensics Challenge & Transform: Managing Energy for Organizational Gain Custom Energy and Management System Training Paul Birkeland Global Strategic Energy Strategic News: 21

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