Energy management

TECHNICAL AND COMMERCIAL PROPOSAL

on development and implementation of the energy management system at industrial enterprise

Purpose of the work

The purpose of the work is creation of organizational and methodical support for the energy management system (ESM) at the enterprise. As a result of completion of this work there will be prepared a document «Organizational and technical requirements to the automatized energy management system of the enterprise». This document meets the requirements of DSTU 4472:2005 “Energy management system. General requirements”. Future steps of the ESM implementation (installation of computer equipment, measurement, telecommunication facilities, development of software, issuing orders, directions and other work) could be carried out using the enterprise’s own resources.

Urgency of the problem

Development and implementation of the energy management system (EMS) is a top priority energy saving measure for all industrial enterprises, as only due to non cost-based (organizational) little cost-based measures it is possible to reduce energy consumption by 3 to 7%. Besides, EMS should created informational base for the implementation of capital-intensive energy saving measures.

Basis for the EMS implementation

ESM development is being carried out on the basis and taking into account of existing organizational, technical and informational resources of the enterprise: automated management system of heat points, ASCME, metrological means, computer equipment, telecommunication facilities, structure of departments and services dealing with problems of energy efficiency, existing regulations, including the regulation on material incentives for the efficient use of FER, storied data files on energy consumption and production output, etc.

Purpose of creation and functions of the EMS

Purpose of creation of the EMS lies in reduction of specific indices of FER consumption and optimal use of limited financial recourses for realization of the energy efficient projects.

The ESM is a complex of organizational measures, technical means, software and methodical support that allow to make operational management decisions by the management aimed at the consumption only necessary minimum of fuel and energy resources (FER) per product (service) unit. ESM allows to plan the level of energy resources consumption and control over execution of planned performance. Also, ESM allows to optimize the use of limited financial resources for realization of energy efficient projects using a profit maximization criterion.

ESM functions include: on-line inspection for energy consumption, volumes and nomenclature of production and other factors affecting the value of energy consumption, determination of normalized (planned) level of energy consumption, comparison of real and normalized levels, diagnostics of reasons for exceeding real energy consumption level in comparison with a normalized one, energy consumption prediction, taking operative management decisions providing for reduction of energy consumption and management of energy efficient projects.

On-line inspection is carried out by means of daily automated and (or) manual input of data into computer and formation of energy consumption database (ECDB). In case of absence of necessary FER consumption assessment devices, energy consumption can be calculated by known rated energy consumption, operating time and capacity factor of the equipment (virtual energy consumption meters).

Determination of the normalized energy consumption level can be carried out by two methods: calculating and analytical method, and statistical method. Calculating and analytical method is preferable, because it allows to fully take into account all factors affecting the energy consumption level. This method can be successfully applied for typical energy consumption objects such as boiler houses, buildings, pipelines, compressed air systems, ventilation systems, fuel and electric furnaces and other typical energy consumption objects and systems, for which the methods of FER consumption normalization have been developed. However, for the enterprises with complicated and intermittent technological cycle and various nomenclature of products the application of calculating and analytical method is connected with significant difficulties. In respect of such enterprises it is possible to use statistical method. In this case, minimal energy consumption indices reached for the past periods at the enterprise under certain conditions, are used as normalized ones. The application of statistical method requires accumulation of large information arrays about energy consumption for the object (for not less than 1 year period). In practice, it is reasonable to use both methods together: statistical – for the enterprise as a whole, calculating and analytical – for typical energy consumption objects and systems.

Diagnostics of the reason for exceeding real energy consumption level in comparison with normalized level allows to determine: in which production department and due to which factors’ impact the FER overexpenditure occurred. The diagnostics is carried out with the following methods: composition of hierarchical system of energy efficiency indices according to the «enterprise – production subdivision – technological unit» scheme, analysis of energy balances by individual subdivisions and types of FER, and composition of the situations estimation tree connecting deviations of controlled parameters with certain reasons.

Energy consumption prediction is carried out on the basis of use of calculation and analytical, and statistical FER consumption models. Energy consumption prediction is a methodical basis for planning of the enterprise’s expenses on energy resources.

Energy efficiency project management includes two tasks: optimal choice of projects and their monitoring after the implementation. Optimal choice of projects is based on the solution of a classical task for the optimization of distribution of limited financial resource by a profit maximization criterion. The basis for solution of this task is the development of a feasibility study for the each potential project, that is characterized by certain capital costs, annual costs saving connected with FER purchase, reached as a result of the project implementation, and by pay-back period of the capital costs. The task of monitoring the realized projects are carried out with justification for investment repayment schedule by way of comparison of specific energy consumption indices before and after project realization.

Making control decisions ensuring the reduction of energy consumption is realized by the result of diagnostics. Made decision have organizational and technical characters and may be subdivided into the following groups:

• Improving the performance quality of operational staff;
• Optimization the operating regime of equipment;
• Timely repair and maintenance of the equipment;
• Retrofit or replacement of the equipment.

Scope of work on EMS implementation

1. Development of an energy consumption sheet of the enterprise with indication of basic energy consumption units and systems, material and energy flows, main indicative characteristics.
2. Composition of a register of existing measurement tools to determine technological and energy parameters.
3. Analysis of existing statistical information on real energy consumption of the enterprise: making up energy balances and correlation dependences between the level of energy consumption, production output and other affecting factors.
4. Development of energy consumption models for the most power-intensive units and systems including schemes of parameters measurement, list of measuring tools (stationary and portable), algorithms for calculation of real and normalized energy efficiency indices, description of possible reasons for energy efficiency reduction, their diagnostic features and methods of elimination.
5. Development of recommendations for the installation of additional measurement tools to determine energy and technological parameters.
6. Development of a structure of the on-line EMS database.
7. Creation of electronic library of express methods of estimation of technical and economical efficiency of potential energy efficiency projects.
8. Development of the provision about energy management service, job descriptions of service stuffs.
9. Development of the regulation about the incentives of the stuff of the enterprise by FER use efficiency criterion.
10. Development of the document «Organizational and technical requirements for automated Energy management system of the enterprise»

Technical and economical efficiency of EMS

Minimum capital costs for ESM creation include the value of computer with standard software (10 000 UAH), and also cost for development of organizational and methodical support and software (250 000 UAH). Additional costs may be connected with the instillation of additional measuring means to determine technological parameters, instrument gages to record the FER consumption, and automated computer data entry systems.

Additional operational costs for EMS implementation are connected with payment of wages to the staff of the energy management service. The energy management service can include three persons with annual wage fund about 150 000 UAH per year.

Estimated annual savings of cash assets that could be reached as a result of the ESM implementation, is not less than 3 to 7%. Thus, for the enterprise having annual FER consumption in the sum of 10 mln. UAH, the annual savings will be not less than 300 000 UAH, and a pay-back period of capital costs will be not more than 1,7 year.