Download - Energy Management Outlook
ARC E M tARC E M tARC Energy ManagementOutlook
ARC Energy ManagementOutlook
Allen AveryAnalyst
ARC Advisory Group
Wil ChinResearch DirectorARC Advisory Group
[email protected]@arcweb.com
Energy Cost ForecastEnergy Cost Forecast
60
70
40
50
Electricityon
BTU
)
20
30
Electricity
Coal
Natural Gas
Crude Oil
ars
per
mil
lio
0
10
(20
08
Do
lla
Energy Cost Will Rise Dramatically
0
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
2016
2019
2022
2025
2028
2031
2034
2© ARC Advisory Group
Energy Cost Will Rise DramaticallySource: EIA Annual Energy Outlook 2010 Early Release Overview
ARC Energy Management Solutions SurveyARC Energy Management Solutions Survey
Online since September 2009114 respondents
Wide variety of industries represented
Management, Engineering and Marketing functions well represented
M j it f d t f EMEA N th A iMajority of respondents from EMEA, North America
Organizations: manufacturer, supplier, SI, OEM
3© ARC Advisory Group
Energy UseEnergy Use
What percentage or portion of your production costs are made up of energy costs?
25 8%
6.5% 1.6% 1.6%
5% to 10%25.8%
17.7%
24.2%11% to 15%
16% to 20%
21% to 30%
22.6%31% to 40%
41% to 49%
50% or more
Energy is a significant portion of production costs
4© ARC Advisory Group
Energy Management Initiative StatusEnergy Management Initiative Status
Are energy management and energy efficiency already implemented in your company as an integral part of your business and production processes? (check all that apply)
41.1%
37.5%
P d i
Business processes
15.2%Have not implemented an energy management initiative
Production processes
6.3%
0% 10% 20% 30% 40% 50%
Don't know
M d h i l d
5© ARC Advisory Group
Most respondents have implemented energy management initiatives
Does your Organization Have an Energy Management System (EMS)?Does your Organization Have an Energy Management System (EMS)?
26%1. Yes, not integrated
7%
26%2. Yes, integrated with business processes
33%3. Yes, integrated with production processes
17%4. No, plan to implement
5 No do not plan to implement
11%5. No, do not plan to implement
6. Don’t know
6© ARC Advisory Group
7%
Monitoring Energy Cost in the PlantMonitoring Energy Cost in the Plant
Do you monitor the energy costs of your industrial manufacturing processes?
26.6%15 2%6.3%
Monitor energy costs in real time for operating purposes
26.6%15.2%Monitor energy costs periodically for accounting purposes
Do not monitor energy costs
51.9%
Don't know
Many monitor energy costs, but few measure in real time
7© ARC Advisory Group
Do you Monitor Energy Cost? (select all that apply)Do you Monitor Energy Cost? (select all that apply)
19%1. Yes, monitor cost in real-time for operations
40%
19%2. Yes, monitor cost periodically for accounting
32%
40%3. No, only monitor energy consumed
9%
32%4. Don’t know
9%
8© ARC Advisory Group
Energy Management: Make or Buy?Energy Management: Make or Buy?
Do you rely on internally-developed energy management applications, ordo you use a
24 2%
Do you rely on internally developed energy management applications, or do you use a third party solution?
75 8%
24.2%
Use an internally developed solution
Use a solution from and75.8% Use a solution from and outside vendor
Energy management solutions used tend to be “homegrown”
9© ARC Advisory Group
to be “homegrown”
What Kinds of EMS Have You Deployed?(select all that apply)What Kinds of EMS Have You Deployed?(select all that apply)
43%1. Internally developed solution
11%
43%2. Solution from enterprise supplier
26%
11%3. Solution from automation supplier
0%
26%4. Saas, outsourced solution
20%
0%5. Don’t know
10© ARC Advisory Group
20%
Rate the Effectiveness of Your EMS(select all that apply)Rate the Effectiveness of Your EMS(select all that apply)
11%1. Exceeded expectations
31%
11%2. Met expectations
16%3. Did not meet expectations
7%4. Results of EMS not transparent
5 Performance not measured
18%5. Performance not measured
6. Don’t know
11© ARC Advisory Group
18%6. Don t know
ConclusionsConclusions
Energy is a significant portion of production costs
Many formalized internally-developed programs with a y o a ed e a y de e oped p og a scentral oversight
Capture overall usage, monitor energy costs,
Few measure in real time
EMS tend to be home-grown
Emerging, expect high-growth
From accounting to reducing cost
Users need easy open distribution of data
Standardization from supplier solutions
12© ARC Advisory Group
Ready for next step, plant-wide integrated solutions
Thank YouThank YouFor more information, contact the author at
[email protected] or visit our web pages atwww arcweb comwww.arcweb.com