Reducing Costs & Achieving Superior Plant Energy Performance

1. Reducing Costs & Achieving Superior Plant Energy Performance Real-time Information & Best Practices in Energy Management Presented by Shiva Subramanya Executive Vice President EPS Corp

2. Introduction to EPS • Energy & carbon reduction for industrial manufacturing • Energy Intelligence:right information, right time, right context • Enabling decisions that: • Improve energy efficiency & reduce costs • Achieve sustainability goals • Founded in 2001 • HQ: Costa Mesa, CA • 4 regional offices

3. Industrial Energy Use U.S. industrial sector • Third of total energy consumption • More than residential, commercial, transportation. Globally • Half of all energy consumed USA - 33% Worldwide Source: AberdeenGroup 2009 By 2020, U.S. industrial sector will consume 51% of the 2020 baseline end-use energy in the United States

4. Top Market Drivers 80% 46% 20% 17% “Cost Reduction” outranks “Sustainability” Survey of 240 manufacturers in 2009 Need to reduce manufacturing costs Achieve or maintain competitive edge Be a thought leader in sustainability Economic / consumer uncertainty

5. 5 Barriers to Efficiency • Low awareness & attention • Elevated hurdle rate • Capital allocation • High transaction cost • Procurement & distributor availability constraints

6. Traditional Energy Management Some reductions seen… but temporary results McKinsey: energy savings left to human & equipment entropy causes inconsistent results. Lawrence Berkeley National Laboratory Equipment entropy is just as common

7. Best Practices • Determine energy “cost per unit” • Develop standards & targets • Implement energy intelligence & management system • Enterprise-wide energy visibility • Utilize real-time data & continuous monitoring

8. Develop Standards & Targets Establish a baseline • Breakdown of current “as is” spend (gas, electricity, water) • Which account for bulk of energy use?

9. Determine “Best in Class” goal Identify equipment for greatest savings Meter for data gathering & continuous improvement Develop Standards & Targets

10. Energy Visibility & Intelligence • Invest in automated data collection • Ensure solution includes • Dashboards • Alerting & event management • Analytics • Integrate into: • Overall corporate strategy • Operations & maintenance

11. xChange Point • Collects data at macro & device level • Real-time information, enterprise wide • Includes team of EPS energy experts example Energy Intelligence system

12. Utilize Real Time Data Reveals gaps in plant standards • Why & how plant is using more energy than required • Alerts play critical role • Real-time informationenables proactivesolutions

13. Continuous Monitoring Automated, real time energy management • Continually monitor equipment, processes & personnel behavior to avoid energy savings entropy • Equipment, controls, personnel change over time • Alterations in environment • Addition or removal of equipment • Degradation in calibration of controls / equipment • Simple alterations to processes can impact energy reduction practices & lower per-unit-of-production costs • Staffing, training & maintenance

14. Continuous Monitoring

15. Conclusion Industrial Energy management • Largely untapped resource • Historical approaches deliver disappointing results Key to success:Automated, real-time energy management & Best Practices • Treating energy as a material resource • Stop entropy at the onset through continuous monitoring • Modifying processes & human behavior • For low-cost/no-cost savings opportunities • Integrating technology & approach into corporate strategy & processes • Key for persistent & measurable savings

16. Thank You! Shiva Subramanya Shiva.subramany@epsway.com Download the Energy Intelligence Best Practices Report @epsway.com