Industrial Strategic Energy Management

Utilities that offer Strategic Energy Management are providing their industrial customers the opportunity to better understand their energy use and while strengthening the utility/customer relationship. Some utilities have also reported increased customer satisfaction from the annual project and PTS incentives, reduced annual maintenance costs and lower utility bills.

• $0.04 per kWh of SEM annual busbar savings

Industrial facilities’ participating in SEM benefit through a better understanding of the drivers of their electric energy use and an introduction to a holistic approach to identify, monitor and manage their consumption through continuous operational improvements. SEM promotes implementation of a structured, sustainable energy management program that delivers consistent long-term results and helps participants:

• Identify low-cost/no-cost O&M strategies,
• Develop continuous improvement skills,
• Provide frequent tracking of performance that measures energy consumption,
• Offset the costs of additional monitoring through PTS payment,
• Get peer-to-peer (or individual) support,
• Learn through virtual and in-person coaching workshops,
• Receive the technical assistance, as needed.

BPA’s ESI program provides utilities and their end-users with a number of resources and technical experts. Additionally, SEM participants may receive non-energy benefits such as more efficient processes, enhanced surroundings for employees, and improved safety.

Tracking energy performance is a critical part of any Strategic Energy Management (SEM) engagement. A Performance Tracking System (PTS) can help automate the collection of energy consumption data from electric utility meters or sub-meters, along with production data or from other key energy drivers, into an online data energy management information system (EMIS). Improved awareness of how energy is used will lead to better, more-informed decisions that can result in verified energy savings. The measurement system and characteristics (i.e., frequency of data collection, data intervals, etc.) will vary by system and facility.

Each SEM participants is eligible for PTS co-funding payment to help offset the costs of PTS setup, installation and maintenance. Participants can qualify for PTS payments once the installation and operation of the PTS has been verified, and ESI is available to support participants in this process. Participants are eligible for two types of PTS co-funding:

• PTS Setup: the lesser of actual PTS cost(s), $15,000, or a utility-specified cap. This budget is a one-time allowance per participant. Once used, it does not renew with subsequent SEM enrollments. It can, however, be reported in multiple phases.
• PTS Maintenance: the lesser of actual PTS maintenance cost(s), $10,000 per two-year performance period, or a utility-specified cap. This payment can be paid in multiple phases, and it renews every two years with each new SEM engagement.

The initial PTS setup and installation may be required prior to starting a SEM performance period or may be concurrent with a performance period. After the initial setup/installation payment(s), annual PTS maintenance payments are also available. These maintenance payments cover annual services and other data barriers that may happen over the course of the SEM engagement. More information is provided in this flyer.

The optional Performance Tracking System Calculator is an easy way for utility customers to keep track of their PTS payments provided to each SEM participant, while including the necessary data and guidance to manually complete and save a BPA Unit Energy Savings, or UES, Measure Upload Template.

PTS payments are above and beyond other payments provided by BPA for verified energy savings (e.g., payments and savings associated with completed UES measures, nonresidential lighting, SEM, and custom projects). 

• Baseline energy-intensity models developed and used to track energy performance,
• SEM peer-to-peer workshops,
• An activity register to identify, prioritize and implement operation & maintenance (O&M) action items,
• On-site SEM coaching,
• O&M tune-ups or energy scans,
• Energy management assessments,
• Co-funding for electrical or production metering installation, upgrade and annual maintenance costs.

SEM cohorts will vary based on the needs of interested participants. Since mid-2020, workshops have been remote and were not limited by the physical proximity of participants. Where possible, SEM will receive an energy-intensity model, which normalizes energy consumption to production, weather, or other energy drivers and is used to report savings to BPA. If sufficient data is not available, engineering calculations may be used to evaluate savings at the project level. SEM is a mid- to long-term engagement over multiple years. While savings can be initially slow, sites can expect 3 to 5% of savings once SEM practices are fully implemented.

Core elements of the engagement include:

• Utilities may execute a utility agreement, to outline the industry’s commitment to implement SEM and the terms of the utility’s performance-incentive offer,
• Long-term energy modeling tracks energy performance and incentive payments for each participant,
• An action plan, where energy efficiency action items are identified, prioritized, and implemented,
• Resources to host SEM engagement planning sessions that align with organizational needs,
• An annual SEM Completion Report documenting action item statuses, verified energy savings, incentive amounts, and energy goals for the following year.

SEM energy champions are expected to participate in either a series of SEM peer network group workshops or host a multiday tune-up event. The participation pathway is tailored for each site, the figure below outlines the typical SEM process:

Serving utilities may re-enroll participants with additional savings potential at the end of each two-year engagement period. Upon notification of re-enrollment, the ESI team will work with the participant to refresh the SEM engagement plan. However, participants who choose not to re-enroll or are no longer a good fit for SEM, will be encouraged to continue their energy management journey through the Energy Project Manager or Custom Projects offerings. Custom Projects is versatile program offering that includes capital improvement projects and O&M projects. At this time, only active SEM participants are eligible for PTS incentives; however, continued use of these energy management tools is highly recommended.

• Commercial and Industrial Annual SEM Report Template (Click here to be taken to the Document Library webpage)
• Commercial and Industrial Strategic Energy Management FAQ
• NW Collaborative SEM Hub website
• SEM M&V Reference Guide (Click here to be taken to the BPA M&V Reference Guides page)
• Strategic Energy Management Calculator V8.3 (Revised Date 10/01/2023)

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