Forklifts Utility Programs by Alene Walkington

Forklifts Utility Programs by Alene Walkington

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  EnergyRight.com Forklifts Utility Programs Alene Walkington ProgramManager EnergyRight® for Business & Industry
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  Tennessee Valley Authority (TVA) TVAworks in partnership with 153 individual local power companies to keep safe, clean, reliable and affordable public power flowing to homes and businesses throughout the seven-state Tennessee Valley region. 2
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  TVA EnergyRight andthe TVA mission Enable LPCs and TVA to reduce costs, improve reliability and provide valuable services to consumers Provide a clean, emission-free resource alternative to traditional generation Save consumers’ lowering rates for all consumers and driving local jobs and economic growth Energy Environment Economic Development 3
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  TVA Energy Services & Programs 4 Fromenergy-saving advice to trusted contractors, we partner with local power companies to transform lives and communities with innovative, industry-leading energy solutions TVA EnergyRight programs • Electrification • Non-Road Electric Vehicles  Forklifts • Electric Vehicles • Demand Response • Federally mandated programming • Energy efficiency initiatives
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  Program Timeline: Forklifts Non-RoadElectric Vehicles (NREV) 2015 NREV Program Launches with the mission to reduce carbon output in the valley. Class 1 & 2 replacing class 4 & 5 was the primary target for this initiative. 2017 NREV gets included as a core energy efficiency incentive in the Energyright Program. NREV companies are included into the trade ally Preferred Partners Network (PPN) members 2018 Energyright Focuses on Electrification. Incentive focuses on IC replacement and new electric forklift additions. Incentives go beyond class 1 & 2. Class 3 forklifts scissor lifts, golf carts, tugger and more are now included as offerings 2020 Program focuses on UVGI to help with the global pandemic and pauses incentives of other incentives. 2022 Forklifts brought back into the program with only a focus on class I & II. These represented the bulk of submitted projects in the past. Building Types for Forklift Projects 78% - Industrial Shift Operations 18% - Warehouse 4% - Other 6
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  Project Highlight 7 Facility Type: BottlingPlant Measure: Automated Forklifts (7) Added Load: 79,394 kWh Incentive: $14,000 A family-ownedcompany isone ofthelargestsuppliersofprivatelabelbottled waterinNorthAmerica. Atthislocation,thecompany usedincentivesfromTVAEnergyRighttoaddseven automatedforkliftsin ordertokeeptheirshipping up topace withtheaddition of anew productionline attheirfacility.
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  EnergyRight.com Electric Forklifts: Industry, Benefits& Barriers
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  Electric Forklifts • Warehousingand storage • Manufacturing • Large retail • Shipping & Storage • Construction • Agriculture • Commercial manufacturing • Mining • Health & technology operations • Waste management Electric forklifts, or lift trucks, have been material-handling workhorses for years. Recent technology advances have boosted electric forklift performance and utility, enabling them to compete with internal combustion (IC) counterparts indoors and out, while delivering energy and emissions benefits and substantial cost savings over their lifetime. 9
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  Forklift Industry • Marketsteadily increasing market share since 1990’s In 2008, 64% of forklifts are electric Class 1 electric forklifts could replace 50% to 80% of existing Class 5 units 10
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  Electric Forklifts How theywork? • Electric forklifts operate just like Internal Combustion (IC) • Powered by industrial batteries instead of propane, diesel, natural gas or gasoline fuel • Use power electronics-based motor controllers and hoist functions Forklifts are classified by vehicle design and power source • Class 1: counterbalanced rider trucks; lift capacity of 3,000 – 20,000 lbs. • Class 2: narrow-aisle forklift; lift capacity of 3,000 – 5,500 lbs. • Class 3: electric hand/rider or pallet trucks • Class 4: internal combustion • Class 5: internal combustion 11
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  Benefits of Electric Capital Benefits •Utility Incentives can help reduce cost anywhere 5-20% of the initial investment. • Long term reduction in costs allows capital to be reallocated to other parts of the business. • Payback period is usually less than two years, depending on energy prices & equipment usage. Lower Emissions • Electric forklifts reduce site emissions. A step toward zero emissions. • This is critical aspect with aggressive carbon footprint reduction goals. • Improved air quality allows for a healthier work zone: indoor/outdoor air. Better Working Environment • With no exhaust output, working areas being cleaner, safer and easier to work in. • Less vibration reduces operating noise, allows for workers to be more aware of their surroundings and cuts down on work fatigue. • Multiple ways to charge: multiple batteries at once, fast charger, multi-shift, plug-in during breaks, time of use. Reduced Operating Costs • Electric forklifts have 90% fewer moving parts than their IC counter parts. • Fuel costs can be cut up to 80% due to not requiring gas/propane or oil. Eliminates hazardous fuel storage. • A wide variety of chargers are available to accommodate one, two or three shift operations. 12
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  13 Facility Type: Industrial Measure: Forklifts Added Load: 104,355kWh Incentive: $11,000 Tennessee-basedcompany thathadgrowntobecome oneofthelargestwholesale distributorofpromotional& bargainbookshasalargewarehouse Forthisproject,thecustomerutilizeda NREV incentivefromTVA toleaseelevenelectric forkliftsthatwillbeusedintheir900,000squarefootdistributioncenter.Thesenew forkliftseliminatetheneedforthecustomertopurchasefuelandwillruncleanerthanthe gas-poweredforkliftstheypreviouslyused. Project Highlight
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  Barriers to Entry& Limitations Higher Capital Cost • Both Electric & IC forklifts can cost $30- 40k but batteries & charging equipment add to the upfront costs. • This can be 20-30% higher in cost depending on battery type and spec. Capability Assumptions • Batteries cannot last a full shift • Unsafe in wet weather outdoors • Underpowered: demanding tasks above 40,000 pounds may require lift capacity offered by IC forklifts. Training & Education • Staff will need to be trained on the new functions and operating efficiencies of new equipment. • Additional signage & operator training required due to lower operation sound, and smooth driving characteristics Maintenance • Not maintenance free. • Batteries chargers, and forklifts still need to be checked on a Misconceptions about electric forklift reliability due to lack of regularly scheduled maintenance to batteries & chargers which can result in pre-mature failure. Infrastructure • Business operations may not evaluate daily needed to convert • Old charging technologies required battery swapping, separate charging rooms, additional equipment, manpower & weekly maintenance 14
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  Current Issues Supply Chain: •Due to the global pandemic, supply of electric forklifts has been severally impacted. • Lead times for equipment has increased tremendously, resulting in 40-to-60-week lead times. Customers could be waiting more than a year to receive equipment. Work Arounds: • Used forklifts have become more popular has made-to- order lifts are extremally hard to get. However, with high demand the supply for these is minimal. • Customers are looking for “off-the-shelf” units instead of made-to-order. While this can help elevate pressure for equipment needs its not always ideal due to specific working requirements. • Extending current leases one-three more years can be a viable option if the forklifts are currently fulfilling the needs of the customer. 15 15
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  Utility Program Project Considerations • Equipmenttype • Used or new • Time of use rates • New or conversion to electric • Purchase or Lease • Hours of operation • Trade ally network available or a requirement • Documentation • Process to apply • Removal of old equipment • Available funding Equipment Type Lift Capacity Annual Energy Impact kWh/unit Class I - Rapid Charging 3,000 - 20,000 11,342 Class II - Standard Conventional Charging 3,000 - 5,500 9,485 Class III - Hand Electric Pallet Trucks 3,000 - 20,000 2,940 TVA program impacts: Carbon Reduction, Energy Efficiency, & Electrification Project Implementation & Guideline Considerations 16
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  EnergyRight.com Thank You Alene Walkington ProgramManager EnergyRight® for Business & Industry