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New Compressed Air Program Trade Ally Workshop

New Compressed Air Program Trade Ally Workshop. May 4, 2011. Agenda. Introductions Jay Amundson: RCx Outreach and Project Coordinator, Nexant Dylan Matthews: Program Manager, ComEd Compressed Air Program Summary Prescriptive & Custom Compressed Air Incentives

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New Compressed Air Program Trade Ally Workshop

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  1. New Compressed Air ProgramTrade Ally Workshop May 4, 2011

  2. Agenda • Introductions • Jay Amundson: RCx Outreach and Project Coordinator, Nexant • Dylan Matthews: Program Manager, ComEd • Compressed Air Program Summary • Prescriptive & Custom Compressed Air Incentives • Comprehensive Compressed Air Study • Case Study • Trade Ally Opportunities • Questions

  3. A Business Case for Energy Efficiency:The Triple Bottom Line • People (human capital): • Industry leadership among peers • Employee satisfaction • Attract forward thinking tenants/customers • Competitive edge among similar facilities • Planet (natural capital): • Reducing CO2 emissions produced by electricity & gas reduces the greenhouse effect • Profit (economic value): • Real estate benefit, higher building value, tenant rates • Lower operational costs, extends equipment life • Reduced electric & gas bill

  4. Compressed Air Program Summary

  5. The New Program Creates New Opportunities • Addresses all aspects of the compressed air system: • Stand-alone Prescriptive & Custom • Studies with Cash Incentives • Offers a more simplified incentive and study structure • Easier for Trade Allies, Service Providers and customers to navigate • Encourages a complete system assessment, optimizing compressed air use according to best practices • Address capital upgrades as well as retro-commissioning (no/low cost) opportunities

  6. Comparison of Old and New Programs * Eligibility requirements and specific incentive caps apply

  7. Study App Customer Must: - Sign Program Agreement - Repair 50% of leak volume - Select other measures for implementation Pre-App Pre-App Final App Final App

  8. Prescriptive & Custom Compressed Air Incentives

  9. Prescriptive & Custom Compressed Air Incentives • “Shovel-Ready” projects with established scope of work & price should continue to apply for incentives directly (no study required) • Prescriptive Compressed Air VSD installation • New air compressors w/ integrated VSDs  100 hp: $100 / hp • VSDs on existing air compressor motors  200 hp: $60 / hp • Custom Project Incentive for Compressed Air • $0.05 / annual kWh • Maximum incentive = 50% of project cost • Pre-Approval required • Pre- or Post- M&V may be required

  10. Comprehensive Compressed Air Studies: RCx & Capital Investment

  11. Comprehensive Study • The study is fully funded by ComEd. • Must be performed using a pre-approved contractor (RSP). • Customer must repair at least 50% of leak volume identified by study. • The $0.05/kWh incentive is for all compressed air measures and savings except leaks. • The incentive is capped at 50% of the bundled, incremental costs. • Owner and O&M staff must be actively involved in process.

  12. What does the Comprehensive Study include? • Perform system tune-up and adjust existing systems • Leak detection • Leak-down test • Supply & demand side assessments • Equipment inventory & system diagram • Investigation of system operation parameters • System monitoring • Investigation of no/low cost improvements and capital investment upgrades

  13. Typical Compressed Air Measures • Compressed Air Leaks • Must be included in Comprehensive Study, but not eligible for cash incentive • Other Eligible Measures • Reduce waste and inappropriate use: • Install no-loss condensate drain valves • Install high-efficiency air nozzles • Reduce compressed air system pressure • Improve control and sequencing optimization of compressors • Schedule end-use of compressed air • Compressor or dryer upgrades • Ineligible Measures • Measures that rely solely on behavioral changes or fuel switching

  14. Study Process Kick-off Meeting Submit application Screening Before Site Assessment Interview Operators Collect Data Preliminary Report Investigation Detailed Investigation Report Select Measures Sign Agreement Implement Measures Verification Incentive Payment Incentive Pre-App

  15. Case Study

  16. Case Study: Chicago Area Auto Manufacturer An automotive assembly plant uses compressed air for holding parts, clamping, and positioning. The assembled body travels to a point where compressed air is also used for painting. • The production facility averages over 1,000 units per day, with two shifts operating five days a week. • Total cost of operation for electricity at the site was estimated at $7.9 million annually.

  17. Case Study: Chicago Area Auto Manufacturer

  18. Case Study: Chicago Area Auto Manufacturer

  19. Trade Ally Opportunities

  20. How can Trade Allies Participate? • Continue to encourage your customers to apply for incentives for “Shovel-Ready” projects • Prescriptive Air Compressor with integrated VSD Installation  100 hp • Custom $0.05 / kWh up to 50% of project cost • Encourage eligible customers to apply for a Study • Become a Study Provider for Comprehensive Studies • Nexant will be contacting all current Industrial RCx or Small Compressed Air RSPs • If not currently an approved service provider, submit RFQ forms (including example reports) to Nexant • Study providers are responsible for identifying opportunities and quantifying energy impacts

  21. Make a business case for energy efficiency • Without ComEd funding, a Comprehensive Study is often difficult to fund (not part of operations budget) • The Comprehensive Study is a win-win situation • The Customer is not obligated to implement any projects until reviewing preliminary results • Customers choose measures that best fit their business operations • Bundling no/low cost measures with capital investments will make the large projects more enticing.

  22. Your Advantages to Participating • The Comprehensive Study typically results in significant, attractive opportunities • - If quickest payback measures are selected, simple payback without incentive is often < 1.0 years • - With incentive, payback often 3-6 months • Advantages for Trade Ally or RSP to the Comprehensive Study • Increase customer engagement through multi-month study process • Uncover opportunities to sell additional services installing energy efficient equipment or implementing energy efficient strategies • Aid the sale of larger projects by bundling with no/low cost projects • Potential to set up a routine leak maintenance program

  23. Trade Ally & Service Provider Marketing • Trade Allies and Service Providers are a key component of overall program marketing efforts • Marketing includes controlling customer expectations throughout the program process • Presentations, press releases, etc. are acceptable marketing efforts “with approval” from Nexant and ComEd. • Deliver the triple bottom line message (people, planet, profit) • ComEd & Nexant will support your marketing efforts

  24. Thank you…Questions?

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