Savings Portfolio

We use the feasibility parameter (see Section 4.5.1) and the profitability expressed in years of ROI (see Section 4.5.2) to form a savings portfolio where we insert all considered saving measures. The portfolio is an easy tool to show and compare all executed assessments and to give a quick overview over all measures. A typical savings portfolio is shown in Figure 4.12.

On the x-axis we plot the technical feasibility of a measure. The differentiation between difficult and easy realization is the result of the discussion in the project

Profitability

Bubble Size = Savings Potential

Categories

A = feasible and profitable B = needs further evaluation C = technically not feasible or not difficult easy Technical

Feasibility

Figure 4.12 Typical savings portfolio.

Bubble Size = Savings Potential not profitable

Categories

A = feasible and profitable B = needs further evaluation C = technically not feasible or not profitable

difficult easy Technical

Feasibility

Figure 4.12 Typical savings portfolio.

team described in Section 4.5.1. On the y-axis we plot the profitability of a measure expressed as reciprocal years of ROI. The difference between profitable and not profitable is given by the investment policy of the customer and may also change with time. The limit is normally around three years. The color code describes the utility the measure is referred to (here: steam, electricity, coolants and gases). The bubble size represents the saving potential which was estimated during the evaluation phase.

As shown in Figure 4.12 we can classify the measures in five categories:

• A measures: These measures are technically feasible and profitable. Therefore they have a high priority for realization and will be included in the implementation plan (see Section 4.6.1).

• B measures: These measures are likely feasible and profitable. Further investigations and evaluations are needed in order to decide whether the measure will be included in the implementation list or not. It can for instance be necessary to perform experiments on the plant or in the lab to assess the feasibility of the idea, or a more detailed design of the measure is necessary in order to estimate the investment costs (and from that the profitability) with the sufficient accuracy.

• C1 measures: These measures are profitable but currently not feasible. Progress in technology can improve the feasibility in the future. The measure are documented, but not included in the implementation list.

• C2 measures: These measures are technically feasible but currently not profitable. Changes in energy prices or in the customer's investment policy can make them profitable in the future. The measures are documented, but not included in the implementation list.

• C3 measure: These measures are neither profitable nor feasible. The measures are documented, but not included in the implementation list.

Figure 4.13 Typical documentation sheet for project results.

The savings portfolio gives a quick view of the assessed measures, therefore it is valuable for discussions with the customer. s representatives and for presentations. For detailed discussion of the measures and as documentation of the project results we prepare an excel list of all measures with all information available. A typical documentation sheet is shown in Figure 4.13.

For the plant A on the site 'Europe 1' the team found 49 ideas. (For the purpose of confidentiality, project titles and affected product have been erased.) The list shows for every project idea the equipment or unit, the rating of the idea, cost savings and necessary investment, ROI or payback time and the CO2 savings. In this example we see some quick wins (savings without investment), profitable measures with investment (rated as A), some ideas that need further investigation (rated as B) and finally measures that are rated as C (not profitable and/or not feasible). For every project idea we have a detailed description and a profitability calculation.

The savings portfolio and the documentation list, together with detailed information about the proposed measures and their evaluation, form the final documentation of an energy efficiency project. The customer can stop here and manage the implementation of measures by himself. We do not recommend an interruption of the project at this point in time. In our experience a project at this stage has a strong momentum that should be used for a successful implementation of profitable measures in the plants. Therefore the project team should stay present in the plants, implement the measures following a jointly developed implementation plan, and work on an energy conscious culture in the plants.

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