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

2. Outline
The Cost of Power
How Well is Power Managed in Today’s Plants?
Today s
The Business Value of Integrated Power &
Automation
Enabling Technologies
Knowledge/Cognitive Management
What D
Wh t Does th Future Hold?
the F t H ld?
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3. The 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 Consumption
Industry is Number One Consumer of Total Energy
Industry is Number Two Consumer of Power
Behind B ildings
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 Energy
y g gy
• Produces approximately 30% of U.S
greenhouse gas emissions
• Accounts for more than 35% of U.S.
natural gas demand Energy Use
• Energy is key to economic growth in domestic
manufacturing Transportation
p
Industry
I d t 27.2%
• Many companies have been unable to pass 33.4%
higher energy costs on to their customers,
which has impacted their profit margins
negatively
• Having an Efficient Energy Management
Strategy is Part of the “Triple Bottom Line”: Commercial
Social, Economic, and Environmental Residential 17.9%
21.5%
• As an Environmental Compliance Strategy,
Source: US Department of Energy
Improved Energy Management is More Cost
Effective Than an “End of Pipe” Solution
• It’s Sound Business Practice
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6. How Well is Power Managed in Today’s
Plants?
Energy Ranks High on the List for Concerns to
Manufacturers (Even Some of the Raw Materials
Cost is Related to Power Generation).
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7. Major Energy-Intensive Industries
Sustainability impacts ALL!
Industrial Energy Intensity vs. Energy Consumption
1000
Energy-Intensive
housand Btu/$ GDP)
Industries
Petroleum
ty
Energy Intensit
100
Primary Paper
Mining
Metals
Chemicals
Nonmetallic
Textiles/Apparel Wood
d
Minerals
Mi l
10
Tobacco/Beverages Food Processing
Plastics/ Fabricated Metals
Furniture Rubber
Transportation
Printing
(Th
Leather Machinery and Computers
Miscellaneous Electrical
1
10 100 1000 10000
Energy Consumption (Trillion Btu)
Source: US Department of Energy
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8. Where Does the Power Go?
Process Heating is Number One Energy Consumer
Machine Drive is Number Two
Source: EIA
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9. Power Management Philosophy Behind Many
of Today’s Plants is……
Energy Management Initiative Status
Leaders Program in place
Plan to implement
Competitors Investigating
No plans underway
Followers Don't know
0% 25% 50% 75% 100%
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10. Energy Efficiency Gains
25% or more
Leaders
20% to 25%
15% to 20%
Competitors 10% to 15%
5% to 10%
None
Followers
Don't know
0% 25% 50% 75% 100%
Leaders make more consistent gains
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11. Integration of Power and Automation: Basic
Premise
Automation and Electrification are Still Separate
Islands 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 Integrate
the Worlds of Power, Motor Controls/Drives, and
Automation Systems in a Single Environment That
Allows End User to Make Intelligent Decisions
About Energy Management
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12. ARC Definition of Integrated Automation and
Power Management
g
Integration of various power related systems,
devices, equipment, and power related data with
the process automation system
Driven not just by functionality, but an overall
strategy 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,
Time with the Most Effective Visual
Representation
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13. Automation & 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 account.
account
Business Business Planning & Supply Business
Process Work
Transactions
C a
Chain Management
a age e t Processes
Production Production Production Production
S95.01 Definition Capability Plan Information
Definition
Collaborative Manufacturing
Production Automation System Work
Management Processes
P
Transactions Production Management
S88 Structures
Real-time
Continuous Batch Logic
Control &
Events
Sensors, Actuators, and
L
Logical Devices
L
F
F F
L L P
T
T
F L F
L
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14. Power & Electrical are Part of Production
Resources in CPS
Enterprise/Business
Operations
Inbound
Supply Chain CRM
& Logistics
Operations
Management
a age e
Collaborative
Production
R&D, Shipping,
Product/Plant Environment
Outbound
Design and Supply Chain
Production
Engineering & Logistics
Resources
Process Automation Power & Electrical
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15. Collaborative Power And Control Solutions
♦ C-PACS articulate the convergence of multiple
disciplines on a common platform
♦ C-PACS specify functions under a single
environment
♦ 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
Business Process Components
Enterprise
E t i Supply Ch i M
S l Chain Management Business
Systems Processes
Product Lifecycle Management
Service-Based ISA 95
Work Fl
W k Flow Service-Based I f t t
S i B d Infrastructure
Architecture Models
Operations Management
Factory Mfg Ops & Factory
Operations
O ti Production Production
Automation
Systems & Processes Processes
Services Product Production
Definition Management
Control & Device
OPC-UA
Networks: Real-Time
POWER: Power Meters, Circuit Breakers, Transfer
PACS
Switches, Intelligent Motor Control Centers,…
C-P
Automation: Motor Drives, Logic, Motion, HMI,
Sensors, Actuators,…
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17. C-PACS Model
Device Control
Network Network
Logic HMI
Logic Process HMI
Control
Motion Power
Common Development Common Tagging &
Platform & C fi
Pl tf Configuration
ti Single Database
Tools
Process Motion Power
Control Networks
Motion
M i
Domain Specific Solutions Are Converging
i ifi l i i
to Improve Performance
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18. 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 reliability
Process Industries are particularly heavy power users (see
heating applications in total industrial power consumption) so
the opportunity is quite large
oppo 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
g q
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19. Integrated Power and Automation is Enabled
by IEC 61850
IEC 61850 is an Ethernet based solution that has
the capability to provide tight integration between
Automation and Power systems.
IEC 61850 does for protection and process
measurement in a substation what fieldbus is
substation,
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
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21. IEC 61850 Benefits, Challenges
Benefits: Challenges:
Reduced implementation time IEC61850 is relatively new
• Application Development • Will continue to evolve
• Integration Product Availability
• Growing but remains somewhat
Growing,
Reduced Wiring Costs limited
IEC61850 compliance does not
Easier equipment upgrade yet guarantee interoperability
• Different interpretations of standards
by developers
Easier application migration • Standard and product improvements
to new technology and updates are ongoing
Learning curve – new
Less vendor lock-in techniques and terminology
• BUT long term training reduced due
BUT, long-term
to common data models and
Better, more uniform communication techniques
engineering and tools
• Standardized naming semantics Network design is critical
• e.g. Failure analysis, maintenance, • Ensure networking expertise is
system simulations included on project teams
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22. Intelligent Motor Control Centers and Variable
Speed Drives
Motors consume 64% of all energy consumed in
industry.
Most industries can significantly reduce their
energy costs just by addressing inefficiencies that
reside in their motor loads.
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
Source: Schneider Electric
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24. 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 or
pumps, fans,
output. This method, however, is inefficient
The application of AC drives to large fans and pumps to
control flow by modulating their speed can p
y g p produce
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 capacity
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25. 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 systems
Integrating machinery health management
Are you making the right measurements? Are
they visible?
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26. Optimization, Simulation, Process Modeling
Coordinated control between assets (boilers, turbines
and other equipment)
Allocate loading of boilers and turbines for optimum
g p
operations
ti
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 providers
yp
• To include electricity buy and sell factors into the energy
management models
Adjust process setpoints to least, but safe, cost
Implement Tie Line Control
Tie-Line
• For prioritized load shedding and purchased power optimization
• Real-time price schedules
Source: Emerson Process
Management
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27. Knowledge Management Issues
More information for the operator
p
More information for Maintenance
How to use this information effectively?
Do you have an accurate picture of your
plant’s energy usage?
Do
D you h have th i h
the in house expertise
ti
necessary to provide you with a good
baseline?
Work practices must be changed to adapt
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28. Future Trends & Strategies
More products and solutions will become
available
Integrated MAC/MEC approach more
common on large projects
Penetration of 61850
Growth in power auditing and
consultative/lifecycle services for power
and automation integration
Expanded worker roles and new work
practices
A good opportunity for both end users and
suppliers
li
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29. Thank You
For more information, contact the author at
lobrien@arcweb.com
or visit our web pages at www arcweb com
www.arcweb.com
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