Measurement and Verification: Savings? Mining and Industrial Energy Optimisation 2010

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1 Measurement and Verification: How to Quantify Energy Efficiency Savings? Mining and Industrial Energy Optimisation 2010

2 How can you save energy? Save 0-30% Save 5-40% Save 5-10% Save up to 60 % Change Behaviour Operational Efficiency Equipment Efficiency Change Technology If you do not need it do not use it Match usage to requirement Improve component efficiency New improved Processes

3 WHO CAN SAVE ENERGY?

4 Who can save? Everyone is responsible for saving energy. Energy Manager cannot manage the energy use. Energy Manager can only facilitates energy use and savings. It is the end users/operators/customers that cause energy use, wastage and savings.

5 Technology alone will not cut it! Who What creates energy savings? People & Technology People Only 16% 23% Technology Technology -4% 3% -10% -5% 0% 5% 10% 15% 20% 25% ETSU GPG084: Managing and Actual SavingsMotivating Staff to Save Energy

6 What is needed? Makes energy use visible to everyone in an easily understood dformat. Makes everyone responsible for saving energy. Empowers everyone (including systems) to take action. Many savings are realised (and sustained) through changes in behaviour. Need complete impact analysis solution It answers the question what are we saving? on an ongoing basis. M b i l l d h AMR Must be an operational tool and not another AMR or billing solution.

7 80% of CEOs and CFOs said they would not spend money to make their factories more efficient and save money in the long run if it will hurt their next quarter bottom line Source: Al Gore Our Choice

8 Energy Efficiency/Saving Initiatives EE Tax Incentive Scheme Standard Offer EEDSM Solar Water Heating Initiative SANS EE National Building Regulation/Standard SATS M&V of Energy Savings REFIT Power Conservation Programme (PCP)

9 MEASUREMENT AND VERIFICATION

10 SATS 50010:2010 Provide standard approach towards the measurement and verification of energy savings and energy efficiency Intended dfor use in voluntary and regulatory domain Build on IPMVP Methodology used should yield conservative savings Guarantee that savings is at least the reported savings 1-Oct- 10

11 Accreditation of M&V Teams/Bodies SANAS busy to develop accreditation system for M&V Teams/Bodies M&V Teams will have to be accredited to issue M&V Saving reports for regulatory environment Requirements are currently been developed by STC Define training, capacity building and skill requirements 1-Oct- 11

12 What is M&V? Measurement & Verification (M&V) is the process of using measurements to reliably determine actual saving created within an individual facility by an energy management program. Ref: IPMVP Vol I, 2007, Section 9

13 The M in M&V The M in M&V stands for: Measurement Not Monitoring (Monitoring is an activity which takes place after the Measurement of savings. Monitoring is the evaluation of the savings and taking any necessary action.) Key

14 Measure Savings? Savings are the absence of energy use. We can not measure what we do not have. We do not measure savings! We do measure energy use. We analyze measured energy use to determine savings. Key

15 A Notional Baseline Baseline + Adjustments 1,000,000 En nergy 750, ,000 Savings 250, Baseline Period Reporting Period Metered Energy Key

16 HOW MUCH ARE WE SAVING?

17 Practical Example 2008 Figures Production per month = 1280 tonnes/month Total energy use = 6784 MWh/month Specific Energy Use = 5.3 MWh/tonne 2009 Figures Production per month = 858 tonnes/month Total energy use = MWh/month Specific Energy Use = 67MWh/t 6.7 MWh/tonne Savings?? Production = 422 tonnes/month lower Total energy use = MWh/month thl lower? Specific Energy Use = 1.4 MWh/tonne increase

18 How do systems an processes perform?

19 Poor Furnaces Performance 1,200 Furnace 6 1,000 Energy consumption (MWh h/day) Production (tonnes saleable/day)

20 Good Furnace Performance Daily Electricity Consumption vs. Daily Total Production Overall Period Electricity consumption [MWh/day] MWh/tonne MWh/tonne Total Production [Tonnes/day]

21 Furnace Specific Energy Use Specific Energy Consumption MWh/Ton Low Production Best operation 10 Higher Production Tonnes Saleable/Day

22 System and Process Behaviour Process Pumping Mine Pumping Pre-Implementation: 1 Jan 2004 to 7 Apr 2004 (Baseline period) Daily electricity consumption vs. daily water sales y = x R 2 = ,000 90,000 80,000 M Wh/day M icity Consumption Daily Electri 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 m^3/day ,000 40,000 60,000 80, , , , , ,000 Daily Liter Water

23 Pumping Efficiency Improvement Pre- and Post-Intervention KPIs Before KPI ergy Use En Saving After Production Production Pre-Intervention Post-Intervention Linear (Post-Intervention) Linear (Pre-Intervention)

24 Case Study Paper Mill Specific Energy Use 80.0 Specific Energy Use 2003: : GJ/Adt/day ADt/day A-24

25 ENERGY EFFICIENCY SAVINGS: EXAMPLE MINING OPERATION

26 Plant Electricity Consumption & Production History (Monthly data: Jan 04 to Sep 07) Plant Monthly Electricity Consumption & Production (Jan 2004 Jul 2008) PCP Period Performance October 2006 assessment September period Monthly production [Ton/month] ctricity consumption [kwh/month] Monthly ele Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 Jan '05 Feb '05 Mar '05 Apr '05 May '05 Jun '05 Jul '05 Aug '05 Sep '05 Oct '05 Nov '05 Dec '05 Jan '06 Feb '06 Mar '06 Apr '06 May '06 Jun '06 Jul '06 Aug '06 Sep '06 Oct '06 Nov '06 Dec '06 Jan '07 Feb '07 Mar '07 Apr '07 May '07 Jun '07 Jul '07 Aug '07 Sep '07 Month Plant Production per month [Ton/month] Plant Electricity Consumption per month [kwh/month] Requested Baseline period: 2004 Calendar year

27 ly production [Ton/month] Plant Electricity Consumption & Production History (2004 to performance assessment period) Plant Monthly Electricity Consumption & Production (Jan 2004 Jul 2008) Performance assessment period PCP Period October 2006 September Monthly electricity consumption [kwh/month] Month Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 Jan '05 Feb '05 Mar '05 Apr '05 May '05 Jun '05 Jul '05 Aug '05 Sep '05 Oct '05 Nov '05 Dec '05 Jan '06 Feb '06 Mar '06 Apr '06 May '06 Jun '06 Jul '06 Aug '06 Sep '06 Oct '06 Nov '06 Dec '06 Jan '07 Feb '07 Mar '07 Apr '07 May '07 Jun '07 Jul '07 Aug '07 Sep '07 Month Plant Production per month [Ton/month] Plant Electricity Consumption per month [kwh/month] Average Monthly Plant Electricity Consumption [kwh/month] Average Monthly Plant Production per month [Ton/month] Requested Baseline period: 2004 Calendar year

28 Actual Energy Use 2004 Figures: (Baseline Period) Average monthly electricity consumption: 8,362,162 kwh/month Average monthly production: 210,396 ton/month Electricity intensity: 42 kwh/ton 2007 Figures: (Performance Assessment Period: Average monthly electricity consumption: 7,362,884 kwh/month Average monthly yp production: 186,438 ton/month Electricity intensity: 39 kwh/ton Changes between 2004 and 2007: Average monthly electricity consumption: down by 999,278 kwh/month (11.9%) Average monthly production: down by 14,958 ton/month (7.1% ) Electricity intensity: down by 3 kwh/ton (7.1%) What is the saving.?

29 Monthly Electricity Consumption vs. Production (Baseline& Performance assessment period) Plant monthly electricity consumption vs. monthly production (2004 and PCP Period) : kwh PCP Period: PA Period: 39 kwh/t kwh : tons Electricity consumption per month [kw h/month] PCP Period: tons PA Period: tons Production per month 2004 PCP PA Period Linear (2004) Linear (PCP Period)

30 Monthly Electricity Consumption/ton vs. Production (Baseline & Performance assessment period) Plant monthly electricity consumption / ton vs. monthly production (2004 and PCP Period) : 42 kwh/t PCP: PA 39 kwh/t Period: 39 kwh/t umption per month [kwh/month] 20 Electricity cons 10 0 PA Period: PCP: tons tons : tons Tons hoisted per month [Ton/month] 2004 PCP PA Period Expon. (2004) Expon. (PCP Period)

31 Actual vs. Service Level Adjusted Baseline Plant: Actual monthly consumption and Service Level Adjusted Baseline (2004 based) Performance assessment PCP Periodperiod October 2006 September Monthly ene ergy consumption [kw Wh/month] Jan Feb Mar Apr '04 '04 '04 '04 May Jun Jul '04 '04 '04 Aug '04 Sep Oct '04 '04 Nov '04 Dec Jan '04 '05 Feb '05 Mar Apr '05 '05 May Jun Jul '05 '05 '05 Aug '05 Sep Oct '05 '05 Nov '05 Dec Jan '05 '06 Feb '06 Mar Apr '06 '06 May Jun Jul '06 '06 '06 Aug '06 Sep Oct '06 '06 Nov '06 Dec Jan '06 '07 Feb '07 Mar Apr '07 '07 May Jun Jul '07 '07 '07 Aug Sep '07 '07 Month Plant Electricity Consumption per month [kwh/month] Plant Service Level Adjusted Baseline [kwh]

32 Baseline (2004): Results Summary Average monthly electricity consumption: 8,362,162 kwh/month Average monthly production: 210,396 ton/month Electricity intensity: 42 kwh/ton Performance Assessment Period (2007): Average monthly electricity consumption: 7,362,884 kwh/month Average monthly yp production: 186,438 ton/month Electricity intensity: 39 kwh/ton Total impact on Energy Use between Baseline and 2007 Total impact: kwh/month reduction (11.9%) Energy Efficiency impact: kwh/month reduction (8.6%) Production related impact: kwh/month reduction (3.3%) Total limpact of specific energy use: Total impact: 3 kwh/ton reduction (7.1%) Energy Efficiency impact: 5 kwh/ton reduction (11.9%) Production related impact: 2 kwh/ton increase (4.8%) What is the EE saving? kwh/month (8.6%)

33 M&V could be more complex In open pit mining the energy/fuel use of a haulage truck depends on the following: Horizontal distance travelled loaded Horizontal distance travelled unloaded Route planning Vertical lift Vertical up and down Tonnes hauled Driver operation Type of truck Fuel use = F(X1, X2, X3... Xn) Multi-dimensional relations 1-Oct- 33

34 M&V SYSTEMS

35 M&V System 1-Oct- 35

36 Real-Time M&V

37 GIS Map

38 Energy Savings 1-Oct- 38

39 Environmental Impact and Savings

40 Conclusions Understanding drivers of energy is essential for M&V EE Tax Incentives requires independent M&V Without M&V you cannot get benefit of Tax Incentives Baselines need to be credible Without metered data you cannot develop baselines Without metered data you cannot claim EE Tax Incentives or Standard Offer

41 Questions?? LJ Grobler

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