Barriers to Energy
Efficiency
Energizing Cleaner Production
Management Course
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Session Agenda:
Review of barriers - approach
Four main barriers & examples
Guidance to policy makers
Role of companies, CP Centers
and others
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Review of Barriers to Energy
Efficiency in Industry
Four steps:
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•
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Energy Efficiency Survey
Regional Stakeholder Workshop
Desk-top reviews of key barriers
Reporting
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Four barrier categories
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•
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Lack of management awareness
Limited knowledge and information
Lack of financing
Limited policies and enforcement
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Step 1: Planning and Organization
But first…
In what step(s)
of the
methodology
do we
encounter
barriers to EE?
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task 1a: Meeting with top management
task 1b: Form a Team and inform staff
task 1c: Pre-assessment to collect general information
task 1d: Select focus areas
task 1e: Prepare assessment proposal for top management approval
Step 2: Assessment
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•
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task 2a: Staff meeting and training
task 2b: Prepare focus area flow charts
task 2c: Walkthrough of focus areas
task 2d: Quantify inputs and outputs and costs to establish a baseline
task 2e: Quantify losses through a material and energy balance
Step 3: Identification of Options
• task 3a: Determine causes of losses
• task 3b: Identify possible options
• task 3c: Screen options for feasibility analysis
Step 4: Feasibility Analysis of Options
• task 4a: Technical, economic and environmental evaluation of options
• task 4b: Rank feasible options for implementation
• task 4c: Prepare implementation and monitoring proposal for top
management approval
Step 5: Implementation and Monitoring of Options
• task 5a: Implement options and monitor results
• task 5b: Evaluation meeting with top management
Step 6: Continuous Improvement
• task 6a: Prepare proposal to continue with energy efficiency for top
management approval
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Lack of management awareness
• Company management awareness is
essential to improving energy efficiency
• Root cause of other barriers:
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–
–
–
Production is more important
Lack of investment capital
Limited policies/systems/processes
Hierarchical structures
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Lack of management awareness
Barrier:
Focus on production output and turnover
instead of
• Producing safely
• Producing more efficiently
• Reducing production costs
Result:
Energy assessment & option
implementation difficult
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Lack of management awareness
Barrier:
Environment seen as
• Compliance issue
• Cost burden
Result: Companies not willing to look at
environment unless they absolutely need to
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Lack of management awareness
Barrier:
“Only new technology can improve energy
efficiency”
Result:
Less focus on low cost / good housekeeping
options
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Lack of management awareness
Barrier:
Immature systems to manage energy, e.g.
• Policies
• Management systems
• Environmental / Energy Manager
Result:
• Management not sufficiently informed
• Staff less able to take initiatives
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Lack of management awareness
Barrier:
Hierarchical management structures
Result:
• Staff inhibited to give suggestions
• Approval for options takes longer
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Limited knowledge and information
Barrier: Poor information systems
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Few meters for electricity, water etc
Lack of monitoring equipment
Information held by different people
Lack of communication
Multiple sets of data
Limited data from contractors
Result: Not measuring is not knowing!!
• No insight into energy/resource losses
• Improvements from options cannot be measured
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Limited knowledge and information
Barrier:
Limited internal knowledge and expertise
• Lack of training
• Limited written procedures/documents
Result:
• Energy losses through poor operations
• Difficult to identify, investigate, implement
options
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Limited knowledge and information
Barrier: Difficult to access external
information and expertise
• Information scattered over many
organizations
• Language barrier
• Internet access
Result:
Companies don’t know how to identify and
solve problem
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Lack of financing
Barrier:
Money available, but not now!
• Budget round
• Permission from head office
Result:
Delayed implementation (= sometimes no
implementation!)
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Lack of financing
Barrier:
Lack of money to invest in options
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•
•
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Long payback period
High investment
Unable to get a loan
Uneasy about taking loans
Perceived barrier???
Result:
Much less options get implemented than
possible
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Limited policies and enforcement
Barrier:
Lack of effective policies
Focus on command-control policies
(legislation)
Different per country!
Result:
Industry not encouraged by government to
improve energy efficiency
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Limited policies and enforcement
Barrier: Weak enforcement of legislation
• Limited funds for enforcement
• Bribing of government officials is cheaper
• Stealing of electricity
Result:
Continued environmental pollution / energy
wastage
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Limited policies and enforcement
Barrier: Focus on short-term economic gain
• Conflicting policies
• Many agencies with role in energy
• Under-pricing of resources
• Subsidies of petrol/electricity
Result:
• Companies more discouraged than
encouraged to reduce resource use
• The economy wins (in the short term…)
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What can policy makers do?
Five step approach:
• Analyze the problem & set scope
• Identify main barriers
• Identify existing and new policy
instruments
• Evaluate policy instruments
• Select policy instruments
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What can Companies, CP Centers
and others do?
This is what we
need to know
from you!!!
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
Barriers to Energy
Efficiency
Thank you for your attention!
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Acknowledgements
This training session was prepared as part of the development and delivery
of the course “Energizing Cleaner Production” funded by InWent,
Internationale Weiterbildung und Entwicklung (Capacity Building
International, Germany) and carried out by the United Nations
Environment Programme (UNEP)
The session is based on the report “Barriers to Energy Efficiency in
Industry in Asia – a review and policy guidance” from the “Energy
Efficiency Guide for Industry in Asia” developed as part of the
GERIAP project that was funded by the Swedish International
Development Cooperation Agency (Sida)
While reasonable efforts have been made to ensure that the contents of this
publication are factually correct and properly referenced, UNEP does
not accept responsibility for the accuracy or completeness of the
contents, and shall not be liable for any loss or damage that may be
occasioned directly or indirectly through the use of, or reliance on, the
contents of this publication.
The report and references are available on www.energyefficiencyasia.org
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