Hamish McGovern Archives - Northmore Gordon

Measurement and verification the next wave of rewarded energy savings

Northmore Gordon — Wed, 20 Jan 2021 12:43:20 +0000

“There are infinite ways in which energy savings can be incentivised using rigorous measurement and verification methods” – Hamish McGovern

Energy management businesses are lining up to ride the next wave of innovative energy savings opportunities emerging with the support of measurable and verifiable energy saving projects. These projects will make up a significant portion of various state government program targets stretching to 2050. Additional incentives will be available when various states roll out their peak demand reduction targets, enabling smart load shifting and storage to be further rewarded.

Under strict state government rules, regulations and specifications and international standards, scheme-approved businesses work with customers to apply measurement and verification (M&V) methodology to model and deliver energy savings. Ultimately, those savings will result in a financial incentive that will help offset the cost of the upgrade for the customer. Incentives are provided as energy efficiency certificates which equate to one MW of energy savings.

Under the programs, energy retailers are required to purchase a quantity of certificates each year equivalent to a percentage of their energy sales. Under M&V, this carrot to mobilise and sustain a project is rewarded in stages as the savings are verified over time, about 6-18 months from installation. Savings can translate to hundreds of thousands of dollars of incentives for major upgrades, with a similar magnitude of annual bill savings.

How does M&V work?

Under the M&V method, measurements are performed on existing equipment, plant or sites typically in the form of a site audit by a certified M&V professional. It is a complex process that uses the international performance measurement and verification protocol.

This project-specific information is used to build an engineering model of energy use per unit of production. The model considers production inputs and outputs and other critical variables and constants like air temperature and batch volumes. To determine how energy consumption can be reduced per unit of production if specific energy efficiency upgrades are to be undertaken, a mathematical regression analysis is developed.

Energy consumption needs to be measurable over a reasonable period prior to the upgrade. For example: for a site using hourly or daily data, from a boundary meter reading over a period of one year; or for air compressors, energy consumption per one second for a week. Boundary metering or localised sub-metering needs to be installed to support the case for rewarding energy savings.

The model must be statistically significant and able to demonstrate actual baseline energy use and, post-retrofit, adjusted baseline with energy savings achieved. Those demonstrated savings are what will be financially rewarded under the energy savings schemes.

Measurement and verification case studies:

Blooming big savings for Van Wyk greenhouses

This unique project replaced two gas-fired boilers totalling 7MW with a renewable 3MW biomass boiler that uses 4,650 tonnes of locally supplied wood chip waste from forestry and timber operations. (Waste wood from sustainable forestry is part of the natural carbon cycle and is therefore a renewable energy source.)

The biomass boiler operates continually and feeds water into a custom-built two-million-litre insulated buffer tank. The tank acts as a large thermal battery from which heat is drawn overnight and during cold weather to regulate the temperature in adjacent glasshouses, essential for quality production.

Van Wyk Flowers Supply is one of Victoria’s largest cut flower/plant farm businesses and supplies local and international markets. The business had already invested in a 350kW solar PV system to power irrigation and other energy needs onsite and faced variable and escalating gas prices. This innovative project was delivered by biomass boiler and energy systems expert Enriva along with certified MV professionals from Northmore Gordon (Wattly), who developed and implemented all required aspects under the Victorian Energy Upgrades program.

The rewards have been well worth the wait, saving $300,000 a year on energy bills and with a financial incentive via the Victorian Energy Upgrades scheme of more than $450,000. Part of the reward is due to the fuel-switch to a renewable source. See full case study here.

Chill pill for data centre saves $50,000 a year, earns $85,000 incentive

Data centres are highly temperature sensitive and can’t risk power interruptions. Under the guidance of a certified MV professional 5G Networks determined it needed to upgrade its data centres across a range of locations in Sydney and Melbourne. Energy efficiency upgrades were a crucial part the solution to reduce running costs and optimise equipment function, lifetime and safety.

Northmore Gordon (Wattly) developed an M&V plan, collecting site data and supporting evidence and building baseline and post-retrofit operating models to calculate actual energy savings. The retrofit included installation of high-efficiency uninterrupted power supply system and new battery system. A new building management system was implemented with temperature, set point and chiller optimisation.

Annual energy bill savings of more than $50,000 have been achieved as well as an incentive under the Victorian Energy Upgrades program of around $85,000 provided to 5G Networks.

Steelmakers increase voltage and reduce electrode erosion

Molycop has been manufacturing steel products for more than a century and continually seeks to improve plant efficiency at its Waratah site in NSW, where it manufactures steel grinding balls and train wheels. Grinding balls are used in milling and regrind applications for mineral processing, extraction and other grinding applications.

The site’s pioneering electric arc furnace – the first of its type installed in the southern hemisphere for steel-making – was upgraded, including energy conservation measures and improvements to production. The gas burners were modified from standard to swirl type to operate at a higher temperature, which reduced energy consumption by the main electric furnace while at the same time increasing the voltage and efficiency of the furnace. In turn, there is lower erosion of the electrodes. Modification of the electric arc furnace and gas burners has reduced greenhouse emissions by about 25,000 tonnes CO2-e over the next 10 years. The upgrade attracted an incentive via the NSW Energy Savings Scheme of over $500,000 following installation, based on measured energy savings.

Metro Trains reduce in-train light maintenance costs by 95%

Metro Trains Melbourne operates 226 carriage trains across 1,000 kilometres of track, transporting 450,000 people a day. As a critical part of a commitment to modernise the 38-year-old Comeng fleet, in-train lighting was upgraded across 136 carriages. A total of 14,100 fluorescent lights were replaced with LEDs, reducing annual lighting maintenance costs by 95%, and with energy savings providing an incentive of $570,000 to be received within 18 months of the upgrade.

The upgrade will reduce carbon emissions by more than 20,000 tonnes CO2-e over the next 10 years. This project was undertaken under the Victorian Energy Upgrades project-based, as it did not qualify under other methods such as commercial building, outdoor or public lighting. The end-to-end process to claim certificates was managed by Northmore Gordon (Wattly). See full case study here.

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The original article was posted on Ecogeneration: ecogeneration.com.au/measurement-and-verification-the-next-wave-of-rewarded-energy-savings-esia

The post Measurement and verification the next wave of rewarded energy savings appeared first on Northmore Gordon.

The towering power of energy savings schemes

Northmore Gordon — Mon, 22 Oct 2018 13:00:13 +0000

The energy that would be saved if homes and businesses were prompted to upgrade their systems is enough to offset the closure of coal-fired power stations, writes Hamish McGovern.

There are easy gains to be had from investing in energy efficient technology but consumers need to be pushed along. A recent report by the Energy Efficiency Certificate Creators Association (EECCA) found energy savings schemes operating across Australia are the key support mechanism for reducing the cost of meeting renewable energy targets and other climate change policy commitments.

Preliminary analysis demonstrates why these schemes need more consideration as part of all Australian governments’ energy trilemma tool kits.

The total energy savings for January to June 2017 achieved by the Victoria and NSW schemes is equivalent to 1,450GWh a year. Over a five-year period, this amounts to 7,250GWh, which is comparable to the generation of Liddell coal-fired power station in NSW, scheduled for closure in 2022.
The 2016 capacity of Hazelwood coal-fired power station in Victoria (which closed in March 2017) would be almost entirely offset by the amount of energy savings that could be delivered by mass rollout of LED high bay lighting technology in factories and warehouses across Australia. Hazelwood’s average capacity contribution in 2016 is estimated to have been 993MW, and replacing Australia’s high bays with LED technology would save about 880MW.
The amount of energy savings that could be delivered by mass rollout of LED non-high bay lighting technology in non-residential buildings is more than equivalent to the capacity contribution in 2016 of Liddell coal-fired power station in NSW (scheduled for closure in 2022).

On target

Millions of energy savings installations which would not have occurred without the energy savings schemes in Victoria, NSW, South Australia and the ACT will meet combined targets of almost 12 million MWh a year by 2020. Each scheme has a different target metric and for the first time we have provided a direct comparison by converting the targets to MWh. This shows that the combined contribution is significant and should turn the heads of policymakers across the nation. These targets should be bigger! (See first chart.) The largest schemes operating in Victoria and NSW, which are certificate-based, have both exceeded their targets this year with Victoria already on track to exceed the 2017 target by 50%. (See second chart.)

The schemes are working and industry has all the right signals to keep delivering energy saving solutions – the targets set to 2020 will be easily achieved.

Opportunity lost

When targets are being achieved, however, installations can slow down. If targets were higher more installations would happen and generally sooner. That is what every jurisdiction in Australia needs – energy efficiency doing as much heavy lifting as possible. Analysis in our report demonstrates how 50% of Australia’s emission reduction target attributable to the electricity sector’s fair portion could be met through improved energy efficiency delivered via such schemes.

While the debate continues over the pros and cons of a national Clean Energy Target, National Energy Guarantee and Demand Management Incentive Scheme, etc, the energy savings schemes are actually delivering downward pressure on peak and baseload demand and energy prices, providing energy bills relief and delivering on their emissions reduction targets – and all this benefit at the lowest greenhouse gas abatement cost.

Our report provides analysis showing that in 2016 energy savings delivered via the schemes was a bit more than demand reduction from rooftop solar (see third chart).

The report also provides a one-stop shop for the most recent modelled net economic benefits. We know that the two largest schemes – Victoria and NSW – have delivered benefits at much lower than expected cost. The report summaries this based on the energy efficiency (white) certificate price average for 2017 (first six months), which is much less than modelled (for Victoria average certificate spot price of $12.94 versus modelled at $25.80 and NSW average certificate spot price at $16.27 versus modelled at $21.00).

The millions of installations are adding up to significant and compounding impacts over time, benefiting participants undertaking upgrades as well as those who aren’t. This is providing broader social as well as net economic benefits which haven’t necessarily been included in the initial modelling.

No schemes, no upgrades

There is a lot of talk about lighting being the major activity being implemented via the schemes and the cost of LED technology dropping dramatically, so wouldn’t installation happen anyway? Our experience is that this isn’t the case. Recent research as well as anecdotal experience from our members shows that households and businesses generally aren’t installing more energy efficiency options outside of the schemes. For example, in other jurisdictions that don’t have schemes (Queensland, Western Australia, the Northern Territory and Tasmania) uptake is much, much lower.

These schemes are a powerful catalyst for the energy efficiency industry in Australia. Since the schemes commenced in 2009, new businesses with new business models have been investing capital and driving rapid and targeted market penetration of lowest cost new and innovative energy saving activities. This includes innovative product development that is leaps and bounds ahead of minimum performance standards in various cases. Low income households continue to be major beneficiaries.

The biggest barrier to being part of energy policy conversation at all levels of government is that legacy energy market supply stakeholders stand to lose out (a bit like hospitals losing out when people focus on staying healthier). As well, there are no equally powerful demand side commercial beneficiaries that stand to gain from a paradigm policy shift, so advocacy for balanced demand side policy is comparatively non-existent.

The EECCA called for a National Energy Market Demand Side Operator back in March. The call still carries as we repeatedly witness a lack of support for proven demand-side solutions that can be delivered immediately as the energy crisis digs in further.

CASE STUDIES:

LED lighting upgrade

A full lighting retrofit of Sunshine Hospital in Western Melbourne was a key part of Western Health’s objective to reduce its carbon footprint. After a thorough assessment, the upgrade included LED tube, backlit and circular panel and downlight alternatives to replace old inefficient lighting. Following installation of around 4,500 lights, the hospital saved 68% on its lighting consumption, which will deliver 10-year savings of more than $2.3 million. The first-year return on investment is 84% with a payback period of 14 months. The annual lighting energy savings are 1,272,147kWh.

Chiller upgrade

The climate control system at the Art Gallery of NSW centres around a chilled water system which runs constantly. To reduce energy costs and maintain reliability, two old rotary-screw fluid-chillers were replaced with high-efficiency, variable speed, magnetic bearing centrifugal chillers and further efficiency improvements were introduced for the cooling towers, water pumps and control systems. This project qualified under the NSW scheme for creation of more than 12,000 energy savings certificates, which equated to funding of over $100,000. Using the measurement and verification method it was determined that annual energy savings of 12,000MW would be achieved, representing 15% of consumption. This equates to annual savings of $140,000 in energy costs.

Solar reflective paint application

Solar reflective paint applied to the roof of a 10,000-square-metre DHL warehouse in Western Sydney provided significant energy savings to a heating ventilation and air conditioning (HVAC) system and enabled energy savings certificates to be created under the NSW scheme. The radiative cooling has been calculated to reduce energy consumption by about 390MWh a year. Following the upgrade, the energy bill dropped by about $40,000 per annum. The certificate revenue provided an upfront return on investment of about 31% on capital expenditure.

Originally published on: ecogeneration.com.au/the-towering-power-of-energy-savings-schemes/

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Cutting the cost of energy

Northmore Gordon — Wed, 17 Oct 2018 17:23:34 +0000

Energy savings schemes have delivered an average annual reduction of total electricity consumption of almost 4% where they operate in Vic, NSW, SA and ACT. Combined, they are saving more than 5GWh of electricity annually, writes Hamish McGovern. More than 2.3 million households and businesses have undertaken upgrades under these programs which combined are saving more than $1billion annually in electricity bills. These are the first aggregated findings of this type and demonstrate the significant contribution and potential of the schemes.

Facts about energy savings schemes in Vic, NSW, SA & ACT since 2009:

> 2.3 million households and businesses have participated;

> 5 million energy-saving upgrades so far;

> 5 million MWh of electricity saved annually;

> 5 million tonnes of greenhouse gas emissions avoided;

> 4,000 jobs supported; and

> $1 billion of customer bill savings annually. (i)

These schemes will meet combined targets of almost 12 million MWh (12,000GWh) a year by 2020 and will achieve annual MWh/capita targets of: Vic at 0.94, NSW at 0.59, SA at 0.37 and ACT at 0.65.

The types of energy users being targeted vary under each scheme:

households;
businesses – SMEs or large commercial and industrial sites; and
government – office buildings, services (hospitals, schools, community facilities), amenities (street lighting) and spaces (parks and gardens).

Typical types of eligible upgrades include: lighting, heating ventilation and air conditioning (HVAC); building weather ceiling (eg insulation), appliance upgrades (eg commercial refrigerated display cabinets and fan motors, household fridges, freezers, dryers and pool pumps).

Two main types of methodologies are used to calculate energy savings to be achieved by an upgrade:

deemed – usually ‘off-the-shelf’ product solutions, like lights, where energy savings are determined over a period of time such as 10 years and based on a number of hours of use); and
project-based – where measurement and verification of electricity consumption is required over time, such as weeks or months, to determine energy savings, such as for an HVAC upgrade in a commercial building or air conditioning at a gym.

Electricity bill savings achieved based on the latest analysis by the Victorian Government indicate that in 2018: participating households will save an average of $175 this year alone; and participating businesses will save an average of $4,700 this year alone. More energy intensive sites are saving much more. An Independent Review of the ACT scheme completed in June 2018 found that on average, participating households are saving $5.65 per week ($293.80 a year), with an average saving of $57 per week ($2,964 a year) for participating businesses. Individual case studies illustrate that actual savings can be much greater: for up to $3.4m over ten years (See Unilever case study).

The schemes are saving much more than they cost with a ratio of about 1:4 costs versus savings. Households in jurisdictions with schemes pay less than $1-3 a month to support the schemes. Regulatory impact statements continue to demonstrate economy-wide savings in the billions. Some schemes operate with subset targets: low income and vulnerable household targets, and audit targets to improve understanding and evaluate the most appropriate upgrade potential in key markets. Estimates suggest that more than 4000 jobs have been supported and more than 100 new innovative businesses have mobilised, with more to come.

Above: Electricity Emissions 2016-2030 (GEM July 2018)

Least cost emissions reduction

Our latest analysis indicates that if rolled out across Australia by 2030, energy savings schemes could deliver one-third of the emissions reductions required by the electricity sector to meet our Paris commitment if supported by complementary energy efficiency measures. This analysis was based on a contribution of greenhouse gas abatement by the schemes of 37.8 Mt/a by 2030.(ii)

The Figure Electricity Emissions 2016-2030 (chart above) demonstrates the possible scenarios:

Black line: baseline emissions of 173.3Mt/a by 2030 with Business As Usual (BAU) and no emissions reduction target based on latest national greenhouse gas projections;

Yellow line: this is the Government’s target of 26% reductions in electricity emissions from 2005 levels by 2030, that was being incorporated into the National Energy Guarantee (NEG); and

Green line: a target of 60Mt/a by 2030 which would meet a target of keeping a temperature rise of less than two degrees based on modelling for the Climate Change Authority (CCA) Report, August 2016.

Industry is mobilising inspiring world-class solutions with the support of effective policy settings in some parts of Australia. After operating for almost a decade, the existing energy savings schemes have been proven to reduce energy consumption and enhance productivity and customer experience. If we can divert significantly more incentive and investment into energy upgrades rather than network upgrades we will be able to innovate much more to minimise global temperature rises.

Competitive technology innovation catalysed

We also need to value the technology innovation and market disruption that have been stimulated because of the market opportunities these schemes are providing which wouldn’t be opening up otherwise.

The schemes are highly regulated: products accredited for installation must meet rigorous compliance requirements. Rigorous methodologies are developed by governments in continuing consultation with industry to determine energy savings to be delivered by upgrades.

Stimulating a highly competitive market to deliver better energy efficiency outcomes is driving product and service providers to offer attractive options that use less energy and last longer as well as pushing on broader service improvements.

Case studies – energy upgrades

A significant reduction in energy demand is being achieved rapidly across a range of industrial, commercial and community amenities with the support of energy savings schemes in Vic, NSW, SA and ACT. These projects are increasing demand for energy efficiency investment, innovation, expertise and upskilling.

Car park air quality monitoring upgrade saves Council $8,000 up front and 77MWh annually

The Hills Shire Council in NSW installed in its Castle Hill car park an energy saving air quality monitoring system and accessed $8,000 through the NSW energy savings scheme to offset upfront installation costs. Ongoing energy costs will be significantly reduced due to annual energy savings estimated at 77MWh. Maintenance costs will go down because of less wear and tear on fans and motors which now run only when carbon monoxide levels in the air rise to a certain point, compliant with air quality standards. The energy-saving installation included carbon monoxide monitors, variable speed drives and a new building management system providing verification of energy savings. (Information courtesy of Energy Conservation)

Street lighting upgrade drops electricity consumption by 80% and saves $66k upfront

A large council in Sydney reduced its street light electricity consumption by 80% when it replaced 750 lights with LED technology. Street lighting is the largest component of the electricity bill. A total of $66,000 was saved on the upfront installation cost under the NSW energy savings scheme. The council will continue to save more in upfront and ongoing costs when it replaces faulty or end-of-life lights in the remaining stock. (Information courtesy of National Carbon Bank of Australia)

HVAC upgrade at Reader’s Digest saves $41k up front and 237MWh a year

An upfront saving of $41,000 delivered under the NSW energy savings scheme contributed significantly to the business case for a Heating, Ventilation and Air Conditioning (HVAC) upgrade at the iconic Reader’s Digest building in Sydney. The upgrade will deliver electricity reductions of 25% a year for the HVAC system (237MWh reduction annually). The upgrade comprised replacement of two 500kW chillers, installation of variable speed drives to the chiller and condenser water pumps, and addition of two cooling towers and control integration with building monitoring and control systems. (Information courtesy of National Carbon Bank of Australia)

Dryer fan upgrade saves Borg $300k upfront and $150k annually

Borg Manufacturing upgraded its main dryer fan to reduce electricity consumption in its processes for melamine, MDF, mouldings, doors, shelving and joinery components. The NSW energy savings scheme delivered an upfront financial incentive of $300,000 enabling the upgrade to proceed. Annual energy bills will be reduced by $150,000. (Information courtesy of Wattly)

Factory fans and controls upgrade saves Kimberley Clark $105k upfront and 680MWh annually

Replacing inefficient industrial fans and controls enabled Kimberly Clark to save $105,000 upfront via the NSW energy savings scheme, a major incentive to get project go-ahead. Annual energy savings of 680MWh should be achieved. New variable speed drives replaced manual control air flow dampers which were inflexible and inefficient, providing better control of the production process of products including Huggies and Kleenex. (Information courtesy of Wattly)

Lighting upgrade at Unilever’s ice cream sites reduces electricity by 76% and saves $3.4m

An extensive lighting upgrade at Unilever’s Tutara facility in regional Victoria will save them more than $1.6 million over 10 years. With an upgrade of more than 1,200 lights the site should save 73% on electricity consumption with a very attractive 173% return on investment and a payback period of only nine months. Also upgraded was Unilever’s Minto site in NSW which manufactures Streets ice cream. About 1,300 upgraded lights should deliver a 76% saving on energy consumption and $1.8 million energy bill savings over 10 years with a project payback period of eight months. One of Unilever’s drivers was to reduce greenhouse gas emissions. These projects combined should avoid 3,371 tonnes of carbon dioxide. (Information courtesy of Shine On)

Case study – technology innovation

Intelligent lighting gets a boost

Energy savings schemes have dramatically increased the innovation and uptake of intelligent lighting control system technology by making it more affordable for businesses with upfront financial incentives. This technology has become an essential aspect of LED lighting upgrade improvements to maximise energy savings.

Energy efficiency turnkey business, Shine On, has seen a 20% uptake in intelligent lights since 2015 and is set to launch a wireless cloud-based system integrating artificial intelligence (AI) to capture this customer demand and again raise the bar for lighting innovation.

Managing director of Shine On, James Johnson, said: “Since we commenced operating in the lighting space in 2009 we have seen a 100% increase in the efficiency of LED technology (80 lumens per watt versus 160 lumens per watt). We are continually trying to increase the efficiency of our products to benefit our customers: they receive higher subsidies, they save more on their electricity bills and they emit less carbon. The energy savings schemes are helping drive this innovation.”

“Intelligent lights communicate through wireless mesh networks. Every light has an inbuilt ambient light sensor and motion sensor. Ambient light sensors allow each light fitting to dim according to how much light there is in a facility, therefore minimising energy consumption. Motion sensors are used in areas where constant lighting is not required, for example warehouses, ensuring that lighting is only used when the area is occupied. The fundamentals of this lighting control technology are not new. What is cutting edge is the ease and simplicity of configuring these new systems. What would have taken weeks and involved high labour costs and wiring in the past now takes minutes,” said Johnson.

Shine On’s soon-to-be-launched cloud-based system of implementation provides a simple intuitive user interface which enables adjustments to be made in seconds to the intelligent lighting system. The new system uses AI to automatically optimise lighting and to control settings based on the user’s preferences and big data will further improve how the facility is configured.

(i)

(i) Figures based on: annual reports of schemes, regulatory impact statements and registries; EECCA Energy Savings Schemes Report, 11/17: Table 4 – targets 2009-2029 metrics conversion to MWh, p 14 using figures from 2009-2017, and electricity consumption of each state in 2017. Assumptions include: allowing for deeming provisions, 1MWh of electricity avoided delivering 1 tonne of greenhouse gas abatement and bill savings based on an average of $0.20c/kWh.

(ii)

(ii) ESIA White Paper: Setting ambitious targets for energy savings schemes Australia-wide 2019-2030, 3 July 2018, p7. The contribution of energy savings schemes of 37.8Mt/a by 2030 is based on considering as a base reference the target of the largest scheme (Vic) of 6.5Mt/a of abatement by 2020. By 2020, emissions abatement for the Vic scheme could be about 1 Mt/a per capita as the population of Vic is likely to be about 6.5million by 2020. If this 2020 abatement target is increased by 25 per cent – which would equate to a 1.25Mt/a abatement per capita, and then rolled out across Australia by 2030, based on an Australia-wide population of 29.8million by 2030, an abatement target of 37Mt/a could be reached by 2030.

Originally Published on: ecogeneration.com.au/cutting-the-cost-of-energy/

The post Cutting the cost of energy appeared first on Northmore Gordon.