Accurate Allocation of energy in production processes - the importance of using metamodels
Many companies struggle with correctly monitoring, allocating and distributing
direct and indirect energy consumption over all internal and external customers,
users or products. In this age of rising commodity costs and additional
attention to sustainability, the advantages of adequately allocating energy are
nonetheless substantial:
1. Real-time mapping of energy throughout process flows makes it easier
to detect deviations in energy conversions during production processes,
find the root causes and reduce losses.
2. Using exact and objective keys for allocating energy consumption
speeds up periodic P&L and CSR reporting and makes for more accurate
reports.
3. Continuous, real-time distribution of energy cost among users increases
transparency and raises awareness with them.
Although most companies already struggle with integrating correct data from
metered equipment, this is only the first - albeit important - step. The crux is
fully understanding the nature and efficiency of energy conversions processes;
energy inflows and outflows to different customers; fixed and variable costs
and corporate structures. By using metamodels - designed for and maintained
by energy managers - all this information is added to the initial metered data
and processed in such a way that any change from an energy point of view
instantly leads to adjustments in the energy allocation.
This white paper reviews emerging trends and challenges in energy allocation
and examines the working and benefits of using specific metamodels at the
level of energy management software.
Many companies struggle with correctly monitoring, allocating and distributing
direct and indirect energy consumption over all internal and external customers,
users or products. In this age of rising commodity costs and additional
attention to sustainability, the advantages of adequately allocating energy are
nonetheless substantial:
1. Real-time mapping of energy throughout process flows makes it easier
to detect deviations in energy conversions during production processes,
find the root causes and reduce losses.
2. Using exact and objective keys for allocating energy consumption
speeds up periodic P&L and CSR reporting and makes for more accurate
reports.
3. Continuous, real-time distribution of energy cost among users increases
transparency and raises awareness with them.
Although most companies already struggle with integrating correct data from
metered equipment, this is only the first - albeit important - step. The crux is
fully understanding the nature and efficiency of energy conversions processes;
energy inflows and outflows to different customers; fixed and variable costs
and corporate structures. By using metamodels - designed for and maintained
by energy managers - all this information is added to the initial metered data
and processed in such a way that any change from an energy point of view
instantly leads to adjustments in the energy allocation.
This white paper reviews emerging trends and challenges in energy allocation
and examines the working and benefits of using specific metamodels at the
level of energy management software.
Step 1: Distribution of acquired commodity costs to internal customers The acquired commodities like water, electricity and natural gas will have contracts and monthly invoices which specify both the costs as well as the usage for each billing period. By dividing the costs on the invoice by the usage for each commodity a commodity unit cost is calculated for each invoice period. For all commodity usages of acquired commodities the cost per period is calculated by multiplying the usage by the unit cost. Step 2: Distribution of generated commodity costs to internal customers The generated commodities like electricity via wind or solar, will have similar cost structures as the acquired commodity types. Depreciation costs, operating costs and maintenance costs which fall within the current period are summed and divided by the gross production within the same period. This yields an unit cost for the generated commodity types. For all commodity usages of generated commodities the cost per period is calculated by multiplying the gross production by the unit cost. Step 3: Distribution of converted commodity costs to internal customers For the converted commodities, the cost structure is the same as for generated commodities: depreciation costs, operating costs and maintenance costs. The gross production is measured so the unit cost is as follows: For all commodity usages of converted commodities the cost per period is calculated by multiplying the gross production by the unit cost. In addition to these costs, the input commodities for the conversion also bring a cost. These will be calculated in the next step. Step 4: Translation of converted commodity usages to primary commodity usages Due to the importance of monitoring the commodity conversion efficiencies, the input commodity usages are measured directly and thus available for calculations. The costs associated with the input commodity flows of the conversion nodes consist of the usage multiplied by the unit cost of the commodity. Depending on the source of the input commodity flow, the unit cost is 22
associated with an acquired commodity, a generated commodity or a converted commodity. Step 5: Distribution of commodity usages to internal customers Using the physical partitioning of the distribution nodes, both the usage and cost are distributed over the internal customers. Step 6: Total cost calculation per internal customer Internal customers, which are represented by sink nodes in the graph model, use one or more commodities. The total cost for an internal customer is thus found by the some of the cost of individual commodity types. 23
- Page 1 and 2: Condugo Accurate allocation of ener
- Page 3 and 4: Many companies struggle with correc
- Page 5 and 6: Market drivers impacting energy man
- Page 7 and 8: A brief history of energy managemen
- Page 9 and 10: What exactly are metamodels? ‘To
- Page 11 and 12: Position of key people and responsi
- Page 13 and 14: Hierarchical vs. graph-based metamo
- Page 15 and 16: logically link the old and the new
- Page 17 and 18: A detailed graph-based versioned me
- Page 19 and 20: 2. Allocating shares to sinks and c
- Page 21: Sink nodes represent the internal c
- Page 25 and 26: Not all companies have the same nee
- Page 27 and 28: Condugo is a young company - founde
- Page 29 and 30: Metamodels are starting to show up
associated with an acquired commodity, a generated commodity or a converted<br />
commodity.<br />
Step 5: Distribution <strong>of</strong> commodity usages to <strong>in</strong>ternal customers<br />
Us<strong>in</strong>g <strong>the</strong> physical partition<strong>in</strong>g <strong>of</strong> <strong>the</strong> distribution nodes, both <strong>the</strong> usage and<br />
cost are<br />
distributed over <strong>the</strong> <strong>in</strong>ternal customers.<br />
Step 6: Total cost calculation per <strong>in</strong>ternal customer<br />
Internal customers, which are represented by s<strong>in</strong>k nodes <strong>in</strong> <strong>the</strong> graph model,<br />
use one or more commodities. The total cost for an <strong>in</strong>ternal customer is thus<br />
found by <strong>the</strong> some <strong>of</strong> <strong>the</strong> cost <strong>of</strong> <strong>in</strong>dividual commodity types.<br />
23
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