NINE MILE

Management Consulting

Energy Management
& Energy Audits
Brar, H., Elliott, G., & Elliott, A. January 2013

www.ninemileco.com
Copyright 2013. All Rights Reserved. The Nine Mile Management Consulting Group

Nine Mile Management Consulting Group Energy Management Energy Audits Energy Management While the growth of Energy Management is rooted in environmental concerns at the end of the day its all about dollars and cents. The Energy Management process is formally defined by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) as: [T]he control of energy use and cost while maintaining indoor environmental conditions to provide comfort and to fully meet functional needs. Energy Management is a circular feedback loop-type of process. At the very beginning of this process, is a commitment by senior management to undertake building, process, and engineering improvements in energy consumption to reduce operational costs. In generic terms, the Energy Management process involves 7 key steps: (1) Making Commitments towards the Energy Management Process, (2) Assessing Performance, (3) Creating an Action Plan, (4) Implementing the Action Plan, (5) Monitoring Results, (6) Recognizing Achievements, and (7) Re-Assessing to Set New Goals. Figure 1: Energy Management Process (ASHRAE) 5.
MAKE COMMITMENT
Designate Energy Manager Establish Communications Assign Accountability

January, 2013

Energy Management solutions can assist in reducing operational expenses for many different facilities including: Manufacturing Facilities Warehouse Facilities Commercial Facilities Office Spaces Building Properties Apartments & Condo Developments Residential Markets Energy Management for Existing Buildings 1. Designate an Energy Manager within the company to oversee Energy Management initiatives and processes. Establish a method of Energy Accounting within the company to keep track of energy, water, and resource consumption as well as associated costs. Benchmark current consumption rates with similar buildings. Evaluate and analyze current and historical consumption trends over several years. Identify Energy Conservation and Energy Efficiency measures. Perform Energy Audits to identify various measures of improving energy efficiency and reducing consumption. *An experienced Energy Audit Professional should carry out this task. Use results of Energy Audits to change building operational procedures and to reduce energy waste. Track results and performance. Continue to set new goals. Communications, & Energy

2.

3.

4.

6.
ASSESS PERFORMANCE
Establish Energy Accounting Analyze Energy Data Set Goals

7.

REASSESS Set New Goals

CREATE ACTION PLAN

Perform Energy Audits Improve Discretionary Operation Evaluate Opportunities

Management, Accounting

RECOGNIZE ACHIEVEMENTS

IMPLEMENT ACTION PLAN

One point that cannot be underestimated is the power of having management buy-in at all levels as well as clear and frequent communications to address the goals of the Energy Management program as well as to create an energy-conscious work culture. Furthermore, an Energy Accounting system needs to be established to track consumption and costs on a continual basis.

MONITOR RESULTS

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Nine Mile Management Consulting Group

January, 2013

Energy Audits Having experienced professionals conduct an Energy Audit for your building or facility is the first step in analyzing energy consumption patterns and most importantly, determining where improvements can be made. The Energy Audit process can be summarized on a scale of increasing intensity of man-power, analysis, resources, and investment. Figure 2: Audit Process (ASHRAE Guidelines)
Preliminary Energy Use Analysis Level I: Walk-Through Analysis
Analysis of Historic Energy Consumption & Cost Energy Utilization Index Survey of building to determine low-cost/no-cost measures and capital improvements.

the Energy Utilization Index (EUI, energy use per unit area per year) and Cost Utilization Index (CUI, energy cost per unit area per year). Both EUI and CUI can be compared to relatively similar buildings and their performance to understand where building performance and energy efficiency stands. Improving Energy Use The effectiveness of Energy Management solutions can be broadly classified from most-effective (also being the least expensive in order to implement) to the most cost-intensive. Figure 3: Energy Management Solutions

Control Energy System Use

1 2 3 4
Purchase LowerCost Energy

Level II: Energy Survey & Analysis

Detailed building survey, energy analysis and breakdown, capital improvements, savings, and payback period.

Level III: Detailed Analysis of Capital Intensive-Modifications

Focus on capital-intensive projects identified in Level II and detailed engineering-works and data gathering.

Optimize Energy Systems Operation

Purchase Efficient Systems

*Increasing intensity of man-power, analysis, resources, and investment is required by going from a Level I to Level III Energy Audit.

Results of Energy Audit Process The results of an Energy Audit are generally presented in a report which highlights recommendations in rankorder of feasibility and ease of implementation, as well as the consideration of costs. The results of an Energy Audit can indicate that a building is consuming higher than normal expected electricity use i.e. when the Electrical Load Factor is greater than the Occupancy Factor. Energy Audits can also indicate issues regarding electric demand billing and rate structures such as ratchet-type billing, time-ofuse billing, and seasonal rates. Furthermore, a buildings normalized energy consumption can also be used as a benchmark, i.e. expressing relative energy use through

*1 most effective method, 2 second-most effective method, 3 third-most effective method, 4 most costintensive method.

1.

Control Energy System Use

The most effective means of reducing energy consumption and costs is through the Control of Energy System Use. This includes the following measures, according to the 2011 ASHRAE Handbook of HVAC Applications (Chapter 36): Shut down HVAC&R systems when not required. Reduce air leakage. Reduce ventilation rates during period of low occupancy. Shut down exhaust fans when not required. Seal or repair leaks in ducts and pipes.
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Nine Mile Management Consulting Group Reduce water leakage. Turn off lighting; remove unnecessary lighting, add switched circuits, use motion sensors and light-sensitive controls. Use temperature setup and setback. Cool with outside air. Seal unused vents and ducts to the outside. Tune up systems before heating and cooling seasons. Take transformers offline during idle periods.

January, 2013 most cost-intensive route and careful cost-benefit analyses needs to be conducted to determine the adequate payback period of capital investments. Both replacement costs and benefits require financial evaluation and less-efficient equipment should be replaced either near towards the end of useful life or when major repairs/overhauls are required. Some systems that are commonly replaced include: Lighting systems and lamps. Heating and cooling equipment. Energy distribution systems (pumps and fans). Motors. Thermal envelope components. Controls and energy management systems. Nine Mile Management Consulting Energy Management Solutions NMCG Energy Management Consultants bring a wealth of practical experience from the field. Our Consultants work with your business to specifically understand your needs and custom-tailor solutions that fit. Some of our Energy Management Solutions include:
ASHRAE Level I to Level III Energy Audits Energy Consumption Analysis Project Management & Engineering GHG Mitigations & Solutions
Energy Management Solutions

2.

Purchase Lower Cost Energy

The evaluation of energy costs and Purchasing Lower Cost Energy forms the second-most effective way of implementing Energy Management solutions. The following methods of lowering energy costs are: Choosing or negotiating lower-cost utility rates. Procuring electricity or fuels through brokers. Correcting power factor penalties. Controlling peak electric billing demand. Utility-sponsored demand response programs. Transportation and interruptible natural gas rates. Cogeneration. Lower-cost liquid fuels. Increasing volume for onsite storage. Avoiding sales or excise taxes where possible. Incentive rebates from utilities and manufacturers. 3. Optimize Energy Systems Operation

Tuning energy systems to achieve optimal performance is the third-most effective means of reducing energy costs. Combined with training, maintenance, and system adjustments, Optimizing Energy Systems Operation includes the following: Training operating personnel. Tuning combustion equipment. Adjusting gas burners to optimal efficiency. Following an established maintenance program. Cleaning or replacing filters. Cleaning fan blades and ductwork. Cycling ventilation systems to coincide with occupied spaces. Using water treatment. 4. Purchase Efficient Replacement Systems

Life Cycle Analysis & Energy Modelling Financial Modelling & Payback Analysis Achieving GreenStar & LEED Certification Energy Cost-Savings Approaches Capital Investment Projects

The final method of reducing energy costs involves the Purchase of Efficient Replacement Systems. This is the
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Nine Mile Management Consulting Group Our Experience Our Energy Management Consultants have a broad range of experiences in the energy field, including: Reducing GHG emissions for gas turbine power plants and reducing fuel consumption costs. Conducting capital investment assessment and engineering design work of gas-fired and coalfired power plants. Project management of large industrial sites, monitoring health and safety, and overseeing building and lighting works. Overseeing energy efficiency projects and providing energy saving solutions to business and government clients. Preparing energy conservation proposals, project costing, energy savings calculations and energy analysis/modelling in the commercial and government sectors. Undertaking energy management training and auditing. Developing detailed Energy Management Plans for energy efficiency and demand management projects. Contact Us For further information about our services, please contact us at: info@ninemileco.com

January, 2013

1.800.873.9118
or www.ninemileco.com

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