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JUSTIFI: Software for Improving Performance Objectives via Energy Efficiency

With growing energy supply concerns and rising costs, energy efficiency is a critical component of industrial energy resilience and competitiveness by directly reducing energy operating costs. Energy efficiency projects in manufacturing also yield valuable benefits to other key metrics, such as improved quality, reduced maintenance costs, improved safety, decreased pollution, and enhanced productivity. However, it is difficult to receive approval for energy efficiency projects, so implementation rates are low, even when meeting capital project payback period criteria. The inclusion and quantification of non-energy benefits (NEBs) in the decision-making process for energy efficiency projects can improve the overall financial payback period while demonstrating a positive impact on the firm's key performance metrics and business strategy. Despite their significant financial and strategic value, NEBs are rarely factored into decision-making due to lack of tools to effectively identify and quantify them. Therefore, a comprehensive and integrative approach is needed for the rapidly evolving energy landscape. To address these challenges, through funding from U.S. Department of Energy, our new assessment methodology integrates common continuous improvement six sigma concepts, such as the DMAIC process, and a protocol of guiding questions, into energy efficiency assessments to identify NEBs. We have also developed open-source software, JUSTIFI, to guide users through this process, data collection, and quantification. It is designed to be used concurrently with DOE energy system analysis software suite, MEASUR. Our methodology and tools inform energy assessors, firm engineering, decision makers, and workforce seeking to increase energy resilience and to maximize benefits aligned with performance metrics.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Better Climate Challenge Working Groups Non-Energy Benefits of Energy Projects-Improving Financial Payback

Energy efficiency is a key strategy recently identified by the United States Department of Energy as a pillar of industrial decarbonization. For manufacturing companies, improving energy efficiency will reduce money spent on energy utilities such as gas, electricity, and oil. Energy improvement projects also provide valuable benefits outside of simple operating cost reductions, such as reducing the carbon footprint, improving safety metrics and even enhancing quality and productivity. Unfortunately, energy efficiency projects have typically faced an adoption gap, even when they meet criteria such as payback period for capital projects. The inclusion and quantification of non-energy benefits (NEBs), also known as co-benefits, in the decision-making process for energy efficiency projects can improve the overall financial payback periods for those projects as well as potentially improve the company's key performance metrics aligned with business strategies. There are no readily available tools that facilitate this, however, and the most used tools for energy audits address NEBs in a perfunctory way if at all. We integrated research for finding and quantifying non-energy benefits of energy efficiency projects into a commonly recognized continuous improvement practice, the Define, Measure, Analyze, Improve and Control (DMAIC) Process. This process, along with software and supplemental materials, guides energy assessments to find and to quantify NEBs associated with energy conservation opportunities. Our aim is to deliver an easy to use and effective process and software tool and to maximize return on investment for energy efficiency projects as well as contribute to companies' strategic performance goals.

DMAIC

JUSTIFI: Software for Improving Performance Objectives via Energy Efficiency

With growing energy supply concerns and rising costs, energy efficiency is a critical component of industrial energy resilience and competitiveness by directly reducing energy operating costs. Energy efficiency projects in manufacturing also yield valuable benefits to other key metrics, such as improved quality, reduced maintenance costs, improved safety, decreased pollution, and enhanced productivity. However, it is difficult to receive approval for energy efficiency projects, so implementation rates are low, even when meeting capital project payback period criteria. The inclusion and quantification of non-energy benefits (NEBs) in the decision-making process for energy efficiency projects can improve the overall financial payback period while demonstrating a positive impact on the firm's key performance metrics and business strategy. Despite their significant financial and strategic value, NEBs are rarely factored into decision-making due to lack of tools to effectively identify and quantify them. Therefore, a comprehensive and integrative approach is needed for the rapidly evolving energy landscape. To address these challenges, through funding from U.S. Department of Energy, our new assessment methodology integrates common continuous improvement six sigma concepts, such as the DMAIC process, and a protocol of guiding questions, into energy efficiency assessments to identify NEBs. We have also developed open-source software, JUSTIFI, to guide users through this process, data collection, and quantification. It is designed to be used concurrently with DOE energy system analysis software suite, MEASUR. Our methodology and tools inform energy assessors, firm engineering, decision makers, and workforce seeking to increase energy resilience and to maximize benefits aligned with performance metrics.

29 ENERGY PLANNING, POLICY, AND ECONOMY

JUSTIFI: Open-Source Software for Identifying and Quantifying Non-Energy Benefits

The integration of Non-Energy Benefits (NEBs) into energy efficiency initiatives is essential for operational excellence in manufacturing. This presentation and software demonstration explore how quantifying NEBs such as improved safety, increased quality, and enhanced productivity, can strengthen business cases for energy investments, leading to better payback periods and alignment with organizational goals. We introduce JUSTIFI, a free, open-source software by the U.S. Department of Energy that aids in the measurement of NEBs and enhances understanding of their impact on Key Performance Indicators (KPIs) and return on investment (ROI). JUSTIFI features an intuitive interface for identifying NEBs, customizable reporting tools, and comprehensive system cataloging, empowering companies to effectively communicate the value of energy efficiency projects. By leveraging this innovative tool, organizations can better navigate energy efficiency assessments and drive support for their energy management initiatives.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Improving Performance via Energy Efficiency JUSTIFI: Open-Source Software for Identifying and Quantifying Non-Energy Benefits

Energy efficiency is pivotal to achieving operational excellence, as it enhances value while reducing waste. This presentation explores the integration of non-energy benefits (NEBs) into energy efficiency projects, which can lead to risk reduction, value creation, and cost savings. By quantifying NEBs - such as improved safety, decreased pollution, and increased productivity - companies can strengthen their business cases for energy investments, ultimately improving payback periods and aligning with strategic goals. Designed for a diverse audience, from trained auditors to novices in energy assessments, we have developed open-source software called JUSTIFI, NEB finding methodology, and training materials which build on existing frameworks and leverages resources from the U.S. Department of Energy and Better Plants energy system analysis software suite such as MEASUR. This work aims to maximize ROI through NEB identification, utilizing tools like JUSTIFI and the NEBs Discovery Protocol.

97 MATHEMATICS AND COMPUTING