Driving Energy Sustainability Across Industrial Sites

Summary

This overview will assist industrial, commercial and campus sites with driving cost effective energy sustainability across their sites. Steps are outlined for reducing and hedging power costs, building electric-ready and resilient site power distribution and accommodating competitive renewable energy.

1. Select a team

Having the right team is essential for success and should include engineering, finance, and operations stakeholders knowledgeable in the energy profile of the company. Since few organizations have all the resources needed, this team may benefit from partnering with third-party subject matter experts to support the efforts. The team should identify, select, and budget for these partners to deliver the tasks that cannot be performed in-house.

2. Assess current power metrics, establish goals and identify target sites

Develop a comprehensive set of performance metrics suitable for the organization’s locations. The Green Business Certification Inc.’s (GBCI) PEER program (see peer.gbci.org/resources) is a useful guide to help establish a comprehensive yet focused set of relevant performance metrics, risk factors, and goals. Select metrics used to rank your sites (e.g., cost, carbon, and market limitations). Perform a site power screening assessment by reviewing regulatory structure, rates, site power models, and site limitations/opportunities.

3. Improve power supply costs, efficiency and carbon emissions

This step can have the most significant impact on cost, carbon and efficiency. Strategies include:

• Competitive bid for a new energy supplier with a lower carbon footprint and more efficient supply (e.g., wind, combined cycle).
• Contract for a Power Purchase Agreement for remote and local renewable power for a portion of the annual energy usage.
• Install on-site generation, cogeneration or tri-generation to reduce power costs and hedge volatile energy prices.
• Purchase retail or wholesale real-time power from the System Operator power pool leveraging site generation to hedge volatile real-time prices.
  • Leverage proven software solutions to maximize savings and minimize carbon emissions.
  • Purchase lower cost merchant wind and solar from the wholesale real-time power pool leveraging renewable energy credits.
  • Transition cogeneration systems from baseload to real-time price dispatch.

4. Upgrade site's electrical distribution system

A critical step towards achieving sustainability and net zero is evaluating the site’s electrical distribution system. Not all site electric distribution systems will support integrating new technologies or loads (e.g., electrification).

Strategies include:

• Improve electrical system safety with arc-flash and power flow studies.
• Increase electric system capacity and expand utility interconnection to accommodate new electric loads and site generation.
• Increase electrical system resiliency and reliability of the main power sources and key feeder systems.
• Enable site power “islanding” capability to ensure continued operations during utility power disruptions.
• Develop models which project future loads that accommodate switching from fossil fuels to electricity.
• Assess options to achieve islanding through on-site generation.
• Improve power use and quality measurement with metering.
• Improve power quality with variable frequency drives and power conditioning.

Definition: Power islanding for resiliency

Integrate sufficient generation to enable a facility to operate during a utility outage. Islanding capability can be developed in phases, with initial emphasis on generation and load response assets (i.e., reducing non-critical loads) that provide a clear return on investment. Over time, islanding capability can expand to include more loads.

Islanding capability requires the deployment of a master controller to control load and balance demand and generation. Electrical system upgrades may be needed to ensure “black start” capability and to address power quality issues when in island mode.

5. Add economic dispatch to reduce costs and generate revenue from grid service

Manage costs, generate revenue and improve the efficiency of power peak demand usage with strategies including:

• Automated control of non-essential loads to reduce peak demand or respond to the Regional System Operator (RSO) and utility curtailment signals.
• Enable onsite generation to be dispatched to reduce  RSO and utility charges.
• Purchase merchant real-time power below retail and pursue hedging against unplanned price swings.
• Install and leverage site generation to maximize savings by adding automation control technology to
  • Operate site generation as a hedge against high retail prices.
  • Avoid utility, state and system operator charges.
  • Avoid peak power cost and create grid service.
  • Dispatch thermal or electric storage.

6. Implement operational effiency and risk management program

Summary