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Join Date: May 2008
Posts: 18

Cost Saving by Load-Shaving

06/10/2008 2:11 AM

Hi,I'm actually an internship trainee at a lens manufacturing company which given a task to save cost by load-shaving.The company currently have 4 gensets and all of them used as standby purpose.Can anyone tell me what is the steps and constraints to save cost by this method?thanks.

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Join Date: Mar 2008
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#1

Re: Cost saving by load-shaving

06/10/2008 8:25 AM

I think the term is peak shaving, which means when the electricity you are purchasing is at premium rate, say in the dead of summer or winter, you would run your gen sets to shave some of the peak rates..

What you must do is calculate the cost of power vs. the cost of diesel to run your gen-sets.. One option may be to schedule your maintenance runs for the time your purchased electricity is at a premium which will limit some costs.

The price of diesel these days probably will exceed purchased power from grid..

As far as load shaving, you must identify loads that are non-critical for your operation, and shed them when not necessary..I do not think your standby machines will need to be in this calculation..

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#2

Re: Cost Saving by Load-Shaving

06/11/2008 1:09 AM

dynames07,

I believe that you have four steps towards solving this problem. First is to determine your actual load throughout the day. Second is to work with the utility company to find what billing rates they can give you for various types of load shedding. Third is to see which loads you can assign to the different types of load shedding the utility names. Fourth is to do a cost/savings analysis for the different types of load shedding.

Utility companies have different ways in which they can bill your electricity usage. Most common is the meter which measures consumption (kWh or kilowatt-hours) and demand (kW or kilowatts). The typical rate structure will give you a summer and a winter rate of consumption in cents per kWh, and a demand charge in dollars per kW. In some cases, the kWh rate will be tiered with the first ## kWh at one rate then the next ### kWh at a somewhat lower rate, and then the remaining kWh at a third rate. The demand is usually measured as a 15 minute average, with the highest average being used to set your demand charge for the next 12 months. (Or stated differently, the highest metered 15-minute demand in the 12 months prior to the current bill is the one used to calculate your demand charge.) The rationale for demand charges is that the utility has to have equipment available for generating the electricity you "demand" 365 days per year, even if you only "demand" that much electricity for a few minutes in the year.

Now, lets get to the four steps I mentioned above. Step-1: Measure your actual usage for about a week. (I don't mean just look at the meter at the beginning and end of the week, but record the usage each minute for an entire week.) You can rent meters/recorders to do this; their output can be dumped into a spreadsheet or other similar tool. You need to determine if this is typical for your business, or if certain times of the year you will have greater or lesser demands. Also, you will need to determine the major loads which are causing this demand--lights, heating/cooling, special equipment, etc. If some loads look suspiciously high or are unexplainable (erratic or not related to activities, etc.) these will need further checking.

Step-2: Utility companies have various types of billing structures they can use. The most common one was described above. They may also have a lower rate for loads which can be interrupted (cut off from their supply) whenever they send a signal over the lines. They may have one for time of day metering, in which the consumption and demand rates can vary depending on the time of day (typical highest load on the utility is late afternoon in the summer, so the rates could be highest then and lowest overnight). They may have a different rate structure for businesses which guarantee never to exceed a specific demand. If you are generating electricity and have the proper equipment to run your generator in parallel with the utility, they will have a rate for how much you receive as credits for the excess electricity you put back into their lines (and the rate for credit is probably going to be based on time of day). Sounds confusing??? Yes, but it makes economic sense to reward the customers who cooperate with them to make the system more efficient and more reliable.

Step-3: You might have identified processes which can be shifted to a different time of day or day of week, so their load does not add to your peak demand. This is the simplest type of "load shaving". You might have some equipment or areas which can be shut off or turned down whenever the utility needs this to be done. You might have some equipment which can be switched to your site-generated power by controls you install, to keep your demand below a certain threshold. You might decide to invest in the controls to allow your generator(s) to be run in parallel with the utility power, so you can cut loads down and even sell excess electricity back to them. Do you see that there are different approaches mentioned here?

Step-4: With all this information in hand, you can then look at the costs for implementing any of the different approaches. Shifting processes to a different time or day may require rescheduling work or personnel, so this can be a cost. Typically air conditioning can be cycled off for 2-5 minutes out of every 20-30 minutes without any significant change in indoor comfort levels, so the cost for doing this is the installation of a simple control (typically utility-supplied). Whatever you consider doing, you can get estimates of the costs. Then calculate the savings for each of the different approaches. Don't forget to factor in the costs for maintenance of generators, fuel cost rises, additional water, and anything else. The payback is calculated as the number of months or years before the cost has equaled the savings. Sometimes the utility will help you with equipment or even financing; but don't forget to include interest charges for any borrowed funds.

Beyond this, two other things to think about: 1) An energy audit, which can include many of the above points as well as looking for other steps you can take to decrease energy usage. 2) Cogeneration, in which the "waste" heat from the running of the generator(s) is captured for use in your normal processes. This heat can then offset the electricity or other fuel which would otherwise have been used for that process. The amount of "waste" heat can be much more than you expect.

Hope this helps--John M.

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#11
In reply to #2

Re: Cost Saving by Load-Shaving

06/12/2008 9:01 PM

Thanks for all the replies,they really help me alot..I'm already start doing energy audit in this plant and data collection using a data analyser.

From the reply of JMueller ,"Typically air conditioning can be cycled off for 2-5 minutes out of every 20-30 minutes without any significant change in indoor comfort levels, so the cost for doing this is the installation of a simple control (typically utility-supplied)."

Can I know more detail about that include the reference website,case studies and manufacturer of the controller if possible?thanks

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Guru

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#13
In reply to #11

Re: Cost Saving by Load-Shaving

06/13/2008 4:51 PM

Go to your local utility's web site and follow the commercial/industrial link to see what programs they offer. They may even send a rep to help with a casual survey and suggest ideas to investigate.

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#3

Re: Cost Saving by Load-Shaving

06/11/2008 1:32 AM

John M has given some VERY good advice in his note. Gather ALL the data you can about costing and power usage.

as part of the internship, you should then ask your employer to introduce you to someone (probably in accounts) who can then lead you through a "cost benefit" analysis to determine whether any particular strategy is of benefit.

Make sure they calculate the "do nothing different" scenario so that you can compare any future action with what would happen if nothing was done.

Remember for your sake there are two outcomes to this project.

First, the benefit to the company in potential power reduction.

Second is the learning experience for you. This is something that will stay with you forever regardless of the outcome for the company. Enjoy!!

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#7
In reply to #3

Re: Cost Saving by Load-Shaving

06/11/2008 8:37 AM

One other question to ask while you're dealing with the accounting folks is to see 24 months of utility bills; electric, gas, fuel, water, sewer, etc. Taske the data and generate a spreadsheet of units billed per month, cost per unit, total monthly cost.

For electricity, your spreadsheet will probably record KWHr used, KW demand, $/KWH, $/KW demand, and total cost. Plot curves for each utility.

What you might see are certain peaks or spikes in monthly usage and/or costs. Find out what causes the peaks, and see if that is a target to go after. In my case, it was a matter of letting operator know that it was better to anticipate which days an 800 HP chiller needed to run and starting it before 8AM to avoid the in-rush starting current from peaking a demand charge during the expensive part of the day. A no cost change in operating procedure that saved several thousand per year in reduced demand costs.

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Power-User

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#4

Re: Cost Saving by Load-Shaving

06/11/2008 5:01 AM

Were those generator sets originally installed to allow critical manufacturing processes to continue through power outages? If so, the cost of running them was probably not the principal consideration when they were purchased. Power from these generator sets may exceed the cost of power from the utility company to a considerable degree.

A setup to measure power consumption throughout your plant could cost quite a bit in time and materials, whether you deploy devices that use a computer interface or something like a strip recorder. You can get a fair idea of the normal usage pattern by scheduling hourly readings of all the watt-hour meters, noting the time of day and ambient temperature. This isn't as precise as making instrument readings of all your circuits, but it will give your bosses an idea of the facility's current hourly power consumption without requiring a large investment in electronics and skilled labor.

You can also review the electric bills for the past year or so to see what the overall pattern of consumption is. These things will give Management a handle on the situation, and it doesn't cost very much.

It is usually Management's job to negotiate electric rates with the power company, and Management will also decide whether using the emergency generators to shave peaks makes sense. If you can quickly provide them with information that enables them to make an intelligent decision, it will be in your favor. This sounds more like a desperate solution than a sensible one, but it isn't my factory. I wish you all well.

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Associate

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#5

Re: Cost Saving by Load-Shaving

06/11/2008 6:35 AM

Dear Sir,

As you are operating your own system with the help of 4 generator sets, and as a system, all are running in parallel.

For power system operation and control, electrical system frequency plays a vital role.

You have stated that you have to do load shaving i.e. you have to do load shedding for smooth system operation I suppose.

Please monitor closely the system frequency and do load shedding depending upon how you are facing the system frequency problems.

For a small and compact system it is a very very delicate and ardous task of system control and Load Shedding process. Only in case of major grid systems , you can control the system frequency and there , it is a child's play, provided you are absolutely devoted and dedicated to the power system which you are operating and controlling.

Regards,

Ulhas Pradhan

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#6

Re: Cost Saving by Load-Shaving

06/11/2008 7:25 AM

My dear friend

if you are sure the gen sets you have are Standby rated then you may not be able to run the same as peak shaving application please go through the rating definition as per relevant ISO.you can run the sets as you wish at the cost of life of the generator. as stand by application the engine can run about 200Hours in a year with rated load in other words your savings will be zero as the engine will be due for overhaul after 200Hours of running and you would be paying through your nose for the parts replacement

crm

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#12
In reply to #6

Re: Cost Saving by Load-Shaving

06/12/2008 11:54 PM

Hope the information given bellow would of use in deciding the application of standby rated gen-set as peak shaving gen-set

Understanding gen set ratings

Rating gen sets for standby, prime or continuous power uses is based on industry and engineering standards. Architectural engineers,contractors and even building owners and maintenance personnel have common questions about gen set rating criteria.

Following are answers to commonly asked questions:

Q. What is the meaning of standby and prime ratings?

A. Standby power ratings for specific gen set models are determined under the following parameters:

· peak cylinder pressure

· exhaust temperature

· smoke level

· turbocharger speed (if applicable)

.

Ratings are based on fuel stop power in accordance with ISO 3046/1, AS 2789, DIN 6271 and BS 5514. The fuel stop is fixed for each engine model/configuration. It represents the maximum safe horsepower the engine model/configuration will be able to produce without exceeding the limits set according to the parameters.

in accordance with ISO 8528 as well as ISO 3046/1, AS 2789, DIN 6271 and BS 5514.

Electric power generation rating guidelines

Rating Standby

Typical load factor 60%

Typical hours/year 100 hours

Typical peak demand 80% of standby rated kW 100% of rating available for,

duration of an emergency outage

Typical application Building service standby Standby Industrial Base load

Enclosure/sheltered environment Rental Pumping Utility

Power module Construction Co generation

Unreliable utility

crm

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#8

Re: Cost Saving by Load-Shaving

06/11/2008 9:03 AM

I believe as an intern you should be able to and must learn this information from your supervisor/mentor. Not only that would develop a stronger relationship w/ them, but also would help you understand how to get information from your co-workers who would be a much better source. Not that any of the posted suggestions/help is wrong or so. However, there would be several cases where your co-workers are your best bet. A little googling to better understand and to have good impression is a good idea, but at the end of the day, go ahead and ask your supervisor. The worst case, he/she may ask you to figure it out yourself. Also, its good way to know how much the company is willing to invest in you. I am not a big fan of institutions that don't take much care of their employees. I am sure you didn't ask for career development advice; however, you said you are an intern

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#9

Re: Cost Saving by Load-Shaving

06/11/2008 9:06 AM

The only thing I can add is that when I was doing this for this location, I did not rely on equipment name plate data. I took an clamp-on amp meter (and a good electrician so I wouldn't get fried in the 480v) and measured "everything" at full load (as close as I could get). With this data, and everything that has been stated above, I was able to come up with savings for optimum start-stop, load shedding, duty cycling, etc.

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Anonymous Poster
#10

Re: Cost Saving by Load-Shaving

06/12/2008 7:27 AM

Hi,

There are two concepts. Please check there shall be four Main Distribution Board fed by separte transformer and each board shall have a separate DG back up. Also, check the DGs may be of different capacity depending upon the load on the MDBs.

Load sharing will come to picture only if all the Loads are distributed to a common Distribution Board. In this case all transformers might have been paralleled and the DGs will be paralleled.

N.Suresh

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Anonymous Poster (2); bubbapebi (1); crm (2); dynames07 (1); ekiechle (1); jmueller (1); Just an Engineer (1); N5EBA (1); Ried (2); umpradhan (1)

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