ARC's Larry O'Brien Integrated Power and Automation Presentation @ ARC Industry Forum 2009 in Orlando, FL. Reducing Cost through Integrated Power and Automation The Cost of Power How Well is Power Managed in Today’s Plants? The Business Value of Integrated Power & Automation Enabling Technologies Knowledge/Cognitive Management What Does the Future Hold?

1. Reducing Cost through Integrated
Power and Automation
Reducing Cost through Integrated
Power and Automation
Larry O’Brien
Research Director
ARC Advisory Group
lobrien@ARCweb.com

2. OutlineOutline
The Cost of Power
How Well is Power Managed in Today’s Plants?How Well is Power Managed in Today s Plants?
The Business Value of Integrated Power &
Automation
Enabling Technologies
Knowledge/Cognitive Management
Wh t D th F t H ld?What Does the Future Hold?
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3. The Cost of PowerThe Cost of Power
Oil Prices Have Declined, BUT…
Power Prices Have Increased and Will Continue To Do So
MY Electricity Bill Hasn’t Gone Down, Has Yours?
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4. Industry and Its Role in Power ConsumptionIndustry and Its Role in Power Consumption
Industry is Number One Consumer of Total Energy
Industry is Number Two Consumer of Power
Behind B ildingsBehind Buildings
Industry Generates a Significant Amount of its
Own Power
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5. Manufacturers and Processors Have The
Most To Gain By Saving Energyy g gy
• Produces approximately 30% of U.S
greenhouse gas emissions
• Accounts for more than 35% of U.S.
natural gas demand
• Energy is key to economic growth in domestic
manufacturing
I d t
Transportation
Energy Use
manufacturing
• Many companies have been unable to pass
higher energy costs on to their customers,
which has impacted their profit margins
negatively
Industry
33.4%
p
27.2%
negatively
• Having an Efficient Energy Management
Strategy is Part of the “Triple Bottom Line”:
Social, Economic, and Environmental
Commercial
17.9%Residential
21.5%
• As an Environmental Compliance Strategy,
Improved Energy Management is More Cost
Effective Than an “End of Pipe” Solution
• It’s Sound Business Practice
21.5%
Source: US Department of Energy
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6. How Well is Power Managed in Today’s
Plants?
How Well is Power Managed in Today’s
Plants?
Energy Ranks High on the List for Concerns to
Manufacturers (Even Some of the Raw MaterialsManufacturers (Even Some of the Raw Materials
Cost is Related to Power Generation).
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7. Major Energy-Intensive Industries
Sustainability impacts ALL!
Major Energy-Intensive Industries
Sustainability impacts ALL!
1000
Industrial Energy Intensity vs. Energy Consumption
Petroleum
1000
ty
GDP)
Energy-Intensive
Industries
Chemicals
PaperPrimary
Metals
Nonmetallic
Mi lWoodTextiles/Apparel
100
Intensit
dBtu/$
Mining
Food Processing
Minerals
Tobacco/Beverages
Furniture
Leather Machinery and Computers
Wood
Transportation
Fabricated Metals
Textiles/Apparel
Plastics/
Rubber
Printing
10
Energy
housand
Energy Consumption (Trillion Btu)
Leather Machinery and Computers
Electrical
Printing
Miscellaneous
1
10 100 1000 10000
(Th
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Energy Consumption (Trillion Btu)
Source: US Department of Energy

8. Where Does the Power Go?Where Does the Power Go?
Process Heating is Number One Energy Consumer
Machine Drive is Number TwoMachine Drive is Number Two
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Source: EIA

9. Power Management Philosophy Behind Many
of Today’s Plants is……
Power Management Philosophy Behind Many
of Today’s Plants is……
Energy Management Initiative Status
Leaders Program in place
Competitors
Plan to implement
Investigating
Followers
No plans underway
Don't know
0% 25% 50% 75% 100%
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10. Energy Efficiency GainsEnergy Efficiency Gains
Leaders
25% or more
20% to 25%
15% to 20%
Followers
Competitors 10% to 15%
5% to 10%
None
Don't know
0% 25% 50% 75% 100%
Don't know
Leaders make more consistent gains
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11. Integration of Power and Automation: Basic
Premise
Integration of Power and Automation: Basic
Premise
Automation and Electrification are Still Separate
Islands of FunctionalityIslands of Functionality
Motor Control Centers are Also Largely Separate
Operators Have No View Into Power Side, Cannot
Identify or Take Advantage of Savings
Opportunities
Few Suppliers Offer True Capability to IntegrateFew Suppliers Offer True Capability to Integrate
the Worlds of Power, Motor Controls/Drives, and
Automation Systems in a Single Environment That
Allows End User to Make Intelligent DecisionsAllows End User to Make Intelligent Decisions
About Energy Management
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12. ARC Definition of Integrated Automation and
Power Management
ARC Definition of Integrated Automation and
Power Managementgg
Integration of various power related systems,
devices, equipment, and power related data withdevices, equipment, and power related data with
the process automation system
Driven not just by functionality, but an overall
strategy to implement a collaborativestrategy to implement a collaborative
manufacturing environment with a holistic
approach to power and energy management
EMS, Intelligent Motor Control Centers,
Switchgear and Electrical Equipment, Intelligent
Field Devices, Optimization, Asset Management, p , g
Information is Provided According to ARC Concept
of Information in Context, Right People, Right
Time with the Most Effective Visual
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Time, with the Most Effective Visual
Representation

13. Automation & Electrical SystemsAutomation & Electrical Systems
Long tradition of separate roles, separate domains in the plant,
separate requirements.
Many commonalities in system requirements: high reliability
and availability, safety, etc.
When you look at most people’s depictions of a DCS/PAS, the
don’t take power management into accountdon’t take power management into account.
Business Planning & Supply
Chain Management
Business
Process
Transactions
Business
Work
Processes
C a a age e tTransactions Processes
Collaborative
Automation System
S95.01
Definition
Production
Definition
Production
Definition
Production
Capability
Production
Plan
Production
Information
Manufacturing
Work
P
Production
Real-time
Control &
Events
ProcessesManagement
Transactions Production Management
BatchContinuous Logic
S88Structures
Sensors, Actuators, and
Logical Devices
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T
T
P
F
F
F
L
F
L
L
F
L
L
L
T
T
P
F
F
F
L
F
L
L
F
L
L
L
T
T
P
F
F
F
L
F
L
L
F
L
L
L
T
T
P
F
F
F
L
F
L
L
F
L
L
L
T
T
P
F
F
F
L
F
L
L
F
L
L
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Logical Devices

14. Power & Electrical are Part of Production
Resources in CPS
Power & Electrical are Part of Production
Resources in CPS
Enterprise/Business
Operations
Inbound
Supply Chain
& Logistics
CRM
Operations
Management
Shipping,
Outbound
R&D,
Product/Plant
Collaborative
Production
Environment
a age e
Supply Chain
& Logistics
Design and
Engineering
Production
Resources
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Process Automation Power & Electrical

15. Collaborative Power And Control SolutionsCollaborative Power And Control Solutions
♦C-PACS articulate the convergence of multiple
disciplines on a common platformdisciplines on a common platform
♦C-PACS specify functions under a single
environmentenvironment
♦C-PACS promote the value of the common
communications infrastructure
♦C-PACS recognize the value of standards in
automation
♦C-PACS demonstrate the importance of a single
power, and control platform
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16. C-PACS – The Foundation for CMM
E t i Business
Business Process Components
S l Ch i M
Business Process Components
S l Ch i MEnterprise
Systems
Business
Processes
Service-Based
S i B d I f t t ISA 95
Supply Chain Management
Product Lifecycle Management
Supply Chain Management
Product Lifecycle Management
W k Fl
Operations ManagementOperations Management
Architecture Service-Based Infrastructure
Production
Factory
O ti
Mfg Ops &Mfg Ops &
ProductionProduction
FactoryFactory
ISA 95
Models
Work Flow
Production
Processes
Operations
Systems &
Services
ProductionProduction
ProcessesProcesses
ProductProduct
DefinitionDefinition
ProductionProduction
ManagementManagement
AutomationAutomation
POWER: Power Meters, Circuit Breakers, Transfer
Switches, Intelligent Motor Control Centers,…
OPC-UA
PACS
Control & Device
Networks: Real-Time
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Automation: Motor Drives, Logic, Motion, HMI,
Sensors, Actuators,…
C-P

17. C-PACS Model
Device Control
Network Network
Logic HMI
Logic HMI
Process
Control
Common Tagging &
Single Database
Common Development
Pl tf & C fi ti
Motion
Control
Power
Motion
Networks
Single DatabasePlatform & Configuration
Tools
Process
Control
Power
M i
i ifi l i i
Motion
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Domain Specific Solutions Are Converging
to Improve Performance

18. Business Value of Integrated Power
Management and Automation Systems
Business Value of Integrated Power
Management and Automation Systems
In many cases the potential savings can equal 10 percent of
total power consumption
This can equal the entire amount of power a plant purchases
from outside electricity generating sources
You could be selling power back to the grid!
Again, value goes beyond cost of energy – integrated power
and automation gives improved visibility into entire scope of
plant operations that leads to improved early event detection,
increased reliabilityincreased reliability
Process Industries are particularly heavy power users (see
heating applications in total industrial power consumption) so
the opportunity is quite largeoppo y q g
In many cases this is unexplored territory and there are a lot of
opportunities that immediately present themselves
Large investments are not required to realize benefits
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g q

19. Integrated Power and Automation is Enabled
by IEC 61850
Integrated Power and Automation is Enabled
by IEC 61850
IEC 61850 is an Ethernet based solution that has
the capability to provide tight integration betweenthe capability to provide tight integration between
Automation and Power systems.
IEC 61850 does for protection and process
measurement in a substation what fieldbus ismeasurement in a substation, what fieldbus is
doing for process control and multivendor device
standardization.
Enhanced diagnostics.
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20. IEC 61850 Brings Power of Digital Networking
to Power Management
IEC 61850 Brings Power of Digital Networking
to Power Management
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21. IEC 61850 Benefits, ChallengesIEC 61850 Benefits, Challenges
Benefits: Challenges:
Reduced implementation time
• Application Development
• Integration
IEC61850 is relatively new
• Will continue to evolve
Product Availability
Growing but remains somewhat
Reduced Wiring Costs
Easier equipment upgrade
• Growing, but remains somewhat
limited
IEC61850 compliance does not
yet guarantee interoperability
• Different interpretations of standards
by developers
Easier application migration
to new technology
Less vendor lock-in
by developers
• Standard and product improvements
and updates are ongoing
Learning curve – new
techniques and terminology
• BUT long term training reduced due
Better, more uniform
engineering and tools
• Standardized naming semantics
• e.g. Failure analysis, maintenance,
system simulations
• BUT, long-term training reduced due
to common data models and
communication techniques
Network design is critical
• Ensure networking expertise is
included on project teams
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system simulations included on project teams

22. Intelligent Motor Control Centers and Variable
Speed Drives
Intelligent Motor Control Centers and Variable
Speed Drives
Motors consume 64% of all energy consumed in
industry.industry.
Most industries can significantly reduce their
energy costs just by addressing inefficiencies that
reside in their motor loadsreside in their motor loads.
Rule of thumb: In a single year, motors can
consume up to 10 times their initial cost.
Source: Schneider
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23. Intelligent Motor Control Centers and Variable
Speed Drives
Intelligent Motor Control Centers and Variable
Speed Drives
Source: Schneider Electric
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Source: Schneider Electric

24. Intelligent Motor Controls Example: AC Drives
& Energy Savings in Pipeline Applications
Intelligent Motor Controls Example: AC Drives
& Energy Savings in Pipeline Applications
In oil and gas pipeline applications it is very common to
control the output of variable torque loads such as those
found in pumps fans and blowers by throttling their input orfound in pumps, fans, and blowers by throttling their input or
output. This method, however, is inefficient
The application of AC drives to large fans and pumps to
control flow by modulating their speed can producey g p p
significant energy savings
The higher the level of motor operating time and the larger
the variation in load duty cycles, the greater the savings
One pipeline customer expects to save $5 million annually in
transportation expenses and achieve reduced pipeline
shutdowns that can cost up to $750,000 per shutdown when
the pipeline is running at full capacitythe pipeline is running at full capacity
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25. Intelligent Field Devices and Plant Asset
Management
Intelligent Field Devices and Plant Asset
Management
Use of intelligent Coriolis Meters to improve
fuel gas measurement (see Emerson
Example)
Integrating electrical and motor control
centers into PAM systemscenters into PAM systems
Integrating machinery health management
Are you making the right measurements? AreAre you making the right measurements? Are
they visible?
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26. Optimization, Simulation, Process ModelingOptimization, Simulation, Process Modeling
Coordinated control between assets (boilers, turbines
and other equipment)
Allocate loading of boilers and turbines for optimum
ti
g p
operations
Develop process models
• So that the control strategies “know” each asset, what they’re
capable of, and how they interact with each other
Feed steam and electricity use information to the plant
energy system for predictive control
Establish automated, real-time connections with
electricity providersy p
• To include electricity buy and sell factors into the energy
management models
Adjust process setpoints to least, but safe, cost
Implement Tie-Line ControlImplement Tie Line Control
• For prioritized load shedding and purchased power optimization
• Real-time price schedules
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Source: Emerson Process
Management

27. Knowledge Management IssuesKnowledge Management Issues
More information for the operatorp
More information for Maintenance
How to use this information effectively?
Do you have an accurate picture of your
plant’s energy usage?
D h th i h tiDo you have the in house expertise
necessary to provide you with a good
baseline?
Work practices must be changed to adapt
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28. Future Trends & StrategiesFuture Trends & Strategies
More products and solutions will become
availableavailable
Integrated MAC/MEC approach more
common on large projects
Penetration of 61850
Growth in power auditing and
consultative/lifecycle services for powerconsultative/lifecycle services for power
and automation integration
Expanded worker roles and new workExpanded worker roles and new work
practices
A good opportunity for both end users and
li
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suppliers

29. Thank YouThank You
For more information, contact the author at
lobrien@arcweb.com
or visit our web pages at www arcweb com
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or visit our web pages at www.arcweb.com