11.07.2019 • Views

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.

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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

NEW & CHANGING PERSPECTIVES ON ENERGY MANAGEMENT: FROM SAVING COSTS TO CREATING STRATEGIC VALUE

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

Accurate Allocation of energy in production processes - the importance of using metamodels

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