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Focus on Energy Business Programs Update. WIEG Annual Business Meeting Point Beach Nuclear Power Plant June 24, 2009. Tim Dantoin Industrial Program 920-435-5718 dantoint@saic.com. Focus on Energy. Program Mission. Accelerate energy efficiency in Wisconsin by supporting projects that
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Focus on EnergyBusiness Programs Update WIEG Annual Business Meeting Point Beach Nuclear Power Plant June 24, 2009 Tim Dantoin Industrial Program 920-435-5718 dantoint@saic.com
Focus on Energy Program Mission Accelerate energy efficiency in Wisconsin by supporting projects that otherwise would not be completed
Why Focus on Energy? • Approx 2/3 of each energy $1 leaves Wisconsin • Efficient businesses are more competitive • Wisconsin’s home owners & businesses save more than $239m annually with Focus programs • Preparing for a “carbon constrained” economy
Target Sectors Pulp & Paper Food Processing Metal Casting Plastics Waste & Wastewater Focus on EnergyPrograms • Residential (single and multi-family) • Renewable Energy • Business • Schools & Government • Commercial • Industrial • Agricultural
Industrial Energy In Wisconsin Electricity 24,329 GWh Natural gas 1.4 Trillion therms Industrial market 35% of total energy
Over 2,000 industrial facilities have participated Focus on Energy Industrial Program
Focus on EnergyAssistance • Technical • Facility-wide assessments • System assessments • Project-specific assessments • Industrial Best Practices • Emerging Technologies • Facilitated Energy Management • Training & Awareness • Financial • Prescriptive Incentives • Custom Incentives • Study Grants • Service Grants • Renewable • New Construction • Special Incentives • Special Promotions www.focusonenergy.com/Incentives/Business
Prescriptive Grants • Fixed incentive rate per unit (e.g. $50 per Hp) • Incentive paid after project completion • Does not require involvement of Focus EA • HVAC • Chillers • VFD • Compressed Air • Food Service • Specialty Measures • Lighting • Motors • Boiler Combustion
Incentive Rate Depends on Technology Tier 1($0.04 per kWh + $125 per kW or $0.40 per therm) Tier 2 ($0.06 per kWh + $200 per kW or $0.60 per therm) Custom Grants Criteria No. 1Under 4 Yrs w/o Grant Max Grant => $250,000 Criteria No. 3Grant < 30%of Project Cost Criteria No. 4Grant > 10%of Project Cost “Window of Opportunity” Criteria No. 2Over 1.5 Yrs with Grant Grant must be approved before project begins
Study Grants • Assistance for quantifying potential savings opportunities • Must work with a Focus advisor • Must be approved prior to undertaking the study • Metering projects may qualify • Up to 50% of study cost • No more than 10% of the potential energy savings • Maximum of $7,500 • Will consider larger grants for larger studies
Service Grants • Intended to jump-start routine maintenance • Fixed incentive rate up to % of service cost • Incentive paid after service completion • Does not require involvement of Focus EA • Burner Tune Up • Steam Trap Repair • Chiller Tune Up • Compressed Air Leaks
Service Grants • Burner Tune Up • Lesser of 1) $100 x No. of Burners or 2) 50% of Service • Steam Traps Repair • Lesser of 1) $50 x No. of Traps Repaired / Replaced or 2) 50% of Service • Chiller Tune Up • Lessor of 1) $2 per ton (<500 tons) or $1 per ton (>500 tons), 2) 50% of Service, or 3) $1,500 • Compressed Air Leak Detection • 50% of detection service up to $500 < System 250 hp < $1,000 • Remaining 50% for leak repair
Renewable for Business • Biomass Combustion • Biomass Digestion • Solar Electric • Solar Water Heating • Distributed Wind
Renewable • Site Assessments – gauges site suitability • Feasibility Studies Grants – more in depth consideration of savings and costs • Development Grants – support for larger systems • Installation Incentives • Cash Back Rewards • Implementation Grants
New Construction • Help customers incorporate energy efficiency into new buildings, additions or major renovations • System Incentives • Similar to Prescriptive Grants for existing facilities • Design Incentives • Pre-approval required • $2,000 for Daylighting • $2,000 for Geotherma Systems • $3,000 for Building Energy Simulation
Special Incentives • Incentive options that offer flexibility for businesses • “RFP” programs: businesses can “bid” on incentives needed to complete a project • Started in Industrial Sector, now available in Commercial, Schools/Government and Ag sectors • Financial needs must be documented and winning proposals are selected on competitive basis
Special Incentives • Incentive options that offer flexibility for businesses • “Retrocommissioning (RCx): currently in the commercial sector; offers incentives to “tuneup”buildings and ensure all systems are operating efficiently • Buildings can reduce energy use up to 30% • Pilot effort underway in Schools/Gov sector; will likely be offered to a wider audience after this is completed • Industrial team taking a systems optimization approach, targeting specific systems instead of whole building; first system is expected to be compressed air.
Special Incentives • Incentive options that offer flexibility for businesses • Staffing Grants: initiative that funds the staff time required to get energy efficiency projects implemented • Must submit proposals with project lists to be completed • Applications reviewed on proposed energy savings of project, need for funding and life of the project savings • Competitive review of proposals • Efficiency projects may be eligible for implementation incentives as usual
Special Promotions • Bonus incentives to engage market as needed • Thus far in 2009 • PC Network Energy Management • Lighting: T12 “bounty”, high bay fluorescent, sensors • Change-A-Light CFL promotion • Commercial Refrigeration System Tune-Up • Variable Frequency Drives • Chiller Tune-Up
Focus on EnergyAssistance • Technical • Facility-wide assessments • System assessments • Project-specific assessments • Industrial Best Practices • Emerging Technologies • Facilitated Energy Management • Training & Awareness • Financial • Prescriptive Incentives • Custom Incentives • Study Grants • Service Grants • New Construction • Renewable • Special Incentives • Special Promotions
Best Practice Technologies • Off-the-shelf, market-proven technologies • Little or no perceived technological risk • Focus incentives promote deployment
Common Industrial BP’s Compressed Air • Repair Leaks • Reduce Pressure • Eliminate Inappr. Use • VSD Compressors • Waste Heat Reuse Lighting - Upgrade to T8 Fluor. - Occupancy Sensors Ventilation • Air Balance • Reduce Vol. of O.A. • System Controls Pumps & Fans • Right-size Motors • Variable Speed Control
BP Sector Guidebooks Process Specific Opportunities • Pulp & Paper (pulping rotors) • Dairy Processing (floating head pressure) • Plastics Industry (ceramic barrel heaters) • Water & Wastewater (fine bubble diffusion) • Metal Casting (reduce scrap) www.focusonenergy.com/Business/Industrial-Business/Guidebooks/default.aspx
Emerging Technologies • Technologies that have not been adopted in Wisconsin • Real or perceived technical risk • Eligible for FOCUS incentives as well • Investment or shared savings available through CleanTech Partners (CTP)
…in Theory Management Commitment… Energy Champion… Energy Policy… Energy Team… Measure & Monitor… Report & Communicate… Set Energy Savings Goal… Implement Projects… …in Practice …Management Concern …Another “Hat” for Someone …Nice Words – No Teeth …Another &*#@ Meeting ! ! …No Payback on Sub-Meters …Monthly Actual vs. Budget …Based on What ? …No Support Facilitated Energy Management
Facility Profile Key Performance Indicators 2006 (Annualized) Lbs Resin 408,858 Electric $ p Lbs Resin $2.76 Electric MMBtu p Lbs Resin 0.180 Gas $ p Lbs Resin $2.53 Total Btu’s Gas MMBtu p Lbs Resin 0.339 Tot Energy $ p Lbs Resin $5.29 Natural Gas Water $ p Lbs Resin $0.52 Business Indicators 2006 (Annualized) Total Energy Cost $2,164,782 Operating Costs $15,000,000 Energy as % Oper. Costs 14.43% Total Facility Costs $33,500,000 Energy as % TF Costs 6.46% No.2 Oil Annual Profits $3,450,000 Energy as % of Profits 62.75% % Increase in Profits with 5% Reduction in Energy Costs 3.14% Electricity Propane Energy in Business Context
Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Equipment Use ProfileEstimating Energy Uses Electrical MMBtu
Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Opportunity ProfileBest Practices & Emerging Technologies e.g. “Free Cooling” Project Electrical MMBtu Save 2.5%
Continual Improvement KPI & Energy Tracking y = mx + b R2 = correlation coefficient m = energy per variable unit b = base load Variable Load Total Energy Use Base Load Production Level or Heating D.D.
Facilitated Energy Management Briefings & Reports for Senior Management Energy Management Plan Prioritized List of Energy Projects Effective Energy Team It All Starts Here
Effective Energy Teams • Leader usually has personal convictions on enviro. & energy • Develop clear action plans that are regularly updated • Address both technical and management aspects of energy • Act as opportunities arise • Measure existing conditions & impact of change • Engage other employees as needed • Focus on continual improvement • Have effective meetings
Contact Information Tim DantoinEnergy AdvisorFocus on Energy920-435-5718dantoint@saic.com www.focusonenergy.org