Given the volatile economic climate, organizations are increasingly adopting process improvements to gain competitive advantages. Finding ways to save money and enhance operations are more important than ever. In the United States industrial sector, electric motor systems consume over 679 billion kWh of electricity per year, with pumping systems accounting for about 25 percent of that total [DOE 1998]. A better system design and optimized pumping system can usually save 20% or more in energy costs annually [DOE 1998]. This represents approximately 29,000 GWh per year (the electrical output of the city of Los Angeles), which equals a reduction of carbon emissions by nearly 20 million tons per year. With the pressure on industry to help protect the environment and positively affect global climate changes, efficiency remains an extremely cost effective option: Just as critical as energy reduction, improved pump system performance lowers maintenance costs and improves systems reliability for better asset management. The process of identifying, understanding, and effectively eliminating unnecessary efficiency losses, while reducing energy consumption, improving reliability and minimizing the cost of ownership over the economic life of the pumping system is commonly referred to as systems optimization. To assist pump users gain a more competitive business advantage through strategic, broad-based energy management and pump system performance optimization, the. Hydraulic Institute developed Pump Systems Matter (PSM), an educational 501 (c) 3 organization. This paper will highlight the financial benefits of system optimization practices and the use of variable speed drives. It will review case studies which will show specific ways to validate financial savings and payback periods.
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