Energy Efficiency
Methodology
Energizing Cleaner Production
Management Course
© UNEP 2006
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Training Agenda: Company Energy
Efficiency methodology
Introduction to the methodology
Methodology step by step
• Purpose, outputs and tasks
• Company examples
• Worksheets
• Energy focus
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Introduction
The “Company Energy Efficiency
Methodology” (Methodology) has been
developed for Asian industrial companies
to help them improve energy efficiency
through Cleaner Production.
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Benefits from Energy Efficiency
• Cost reductions through efficient use of energy
• Reduced exposure to fluctuating energy supply
and prices and blackouts
• Increase in productivity and product quality
• Improved reputation with customers and society
through environmental protection
• Improved employee motivation, health and
safety
• Compliance with legislation and ISO 14001
targets
Increased profits and shareholder
value
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The Methodology
Is tailored to energy-intensive industrial
companies in developing Asian countries
Focuses on energy, which is less visible than
waste, water and raw materials
Explains
• what should be done in theory
• how it is done in practice in different companies
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The Methodology is based on:
The Cleaner Production (CP) strategy:
• Prevention of waste
• Systematic approach
• Integrated into business processes
• Aimed at continuous improvement
Existing CP and energy audit methodologies
Real practice experience from energy
assessments carried out as part of the GERIAP
project in more than 40 Asian industrial
companies
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6-Step
Cleaner
Production
Approach
Step 1: Planning and Organization
•
•
•
•
•
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
•
•
•
•
•
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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Information under each Step
Several tasks: what a company should do as a
minimum
Company examples: how the task was applied at
different companies and lessons learnt
Worksheets: to assist completing the task
Remember: apply the methodology flexibly as
long as energy efficiency is improved because
each company is different.
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Step 1: Planning and Organization
Purpose:
• Obtain top management commitment
• Plan and organize an energy assessment
Output:
• Written proposal with selected steps and
tasks to improve the company’s energy
efficiency
• Approved by top management.
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Step 1: Continued
Time: 3 – 6 days
Tasks include:
• Task 1a: Meeting with top management (1-2 hours)
• Task 1b: Form a Team and inform staff (0.5-1 day)
• Task 1c: Pre-assessment to collect general information
(1-3 days)
• Task 1d: Select focus areas (0.5-1 day)
• Task 1e: Prepare assessment proposal for top
management approval (2-3 days)
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Task 1a: Meeting with Top
Management (1 – 2 hours)
Purpose of first meeting:
Top management:
•
•
Get commitment of company middle managers, staff
and/or external facilitators to carry out a preassessment
Write a proposal for a detailed energy assessment
Company middle manager or external
facilitator:
•
Get top management’s approval for a pre-assessment
•
Write a proposal for a detailed energy assessment
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Task 1a: Meeting with Top
Management (continued)
Discuss at this 1-2 hour first meeting:
• If/Why top management is interested in
energy efficiency
• Energy areas of interest or concern
• Where the company is now
• Other factors of influence on the assessment
• Time needed for pre-assessment and writing
proposal for feasible options
• Team composition and management
representative
• How staff will be informed to ensure
cooperation
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Worksheet 1: Reasons for Energy
Efficiency
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Worksheet 2: Energy Management
Matrix
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Worksheet 3: Factors influencing
the energy assessment approach
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Task 1b: Form a Team and inform
staff (0.5 – 1 day)
The Team should consist of:
• Someone who knows the main energy uses
and environmental impacts, e.g. the
Environment Manager or Energy Manager
• Someone who knows the production process,
e.g. the Head of Production
• Someone with access to general company
information and energy cost data, e.g. the
company’s Accountant or Finance Manager
• A communications or training person
• A top management representative
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Energy
Focus
Task 1b: Form a Team and inform
staff (cont.)
Team should have
• Knowledge of energy equipment
• Energy intensive production processes
• Access to energy data
Typical positions
• Utilities Manager
• Energy Manager
• Maintenance Engineer
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Worksheet 4: Team Members and
Roles
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Task 1c: Pre-assessment to collect
general information (1 – 3 days)
Information collected should include:
• General company details
• Organization chart
• General production flow chart
• Production data for the past 3 years
• Energy, resource consumption data and costs
for the past 3 years
• Inventory of major equipment
• Overview of information collected for each
process step / department
• Company greenhouse gas (GHG’s) emissions
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Energy
Focus
Task 1c: Pre-assessment to collect
general information (cont.)
Include auxiliary sections in the
general production flow chart
• Water treatment
• Boiler and steam systems
• Compressed air systems
• Air conditioning / refrigeration
• Ventilation
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Energy
Focus
Task 1c: Pre-assessment to collect
general information (cont.)
Production and resource data should
also include
• Fuel consumption rates and costs
• Electricity consumption and costs
• Fuel mix
• Electricity bills from utility
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Energy
Focus
Task 1c: Pre-assessment to collect
general information (cont.)
Inventory of major equipment
• Name of equipment: motor
• Numbers: 50
• Capacity: 1 with 100 HP, 39 with >25 HP, 10
with <10 HP
• Type: AC motor
• Supplier: General Electric
• Rated parameters: e.g. load
• Operating parameters (if available)
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Worksheet 6: General Production
Flow Chart
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Worksheet 7: Production and
Resource Data
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Worksheet 8: Inventory of Major
Equipment
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Task 1d: Select focus areas (0.5 – 1 day)
A focus area can be:
• Entire plant
• A department, production line, or process
step
• Specific (energy) equipment or resources
The process for selecting focus areas:
• Identify possible focus areas
• Determine selection criteria
• Rate each focus areas High, Medium, Low for
each criteria
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Energy
Focus
Task 1d: Select focus areas (cont.)
Different focus areas can be selected
when energy is considered
• An auxiliary system instead of a
production step
- Steam system
- Compressed air
• Specific major energy equipment
- Boiler house (not just the boiler!)
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Worksheet 10: Selection of Focus
Areas
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Task 1e: Prepare assessment
proposal for top management
approval (2 – 3 days)
It is important to obtain top management
commitment
The assessment proposal should include:
•
•
•
•
•
Objective, scope (i.e. focus areas)
Outputs
Approach (step 2, 3 and 4 of the Methodology)
Team
Time & budget
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Step 2: Assessment
Purpose: assess where energy is lost/wasted
for the focus area(s)
Output: overview of how much energy is lost
and how much money this costs for the focus
area(s)
Then it becomes easier to identify options to
improve energy efficiency in step 3!
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Step 2: Assessment
Time: minimum 3 days
Tasks include:
•
Task 2a: Staff meeting and training (>0.5 day for staff
meeting only)
•
Task 2b: Prepare focus area flow charts (>2 hours per
focus area)
•
Task 2c: Walkthrough of focus areas (> 0.5 day per focus
area)
•
Task 2d: Quantify inputs and outputs and costs to
establish a baseline (time required depends on data
available)
•
Task 2e: Quantify losses through a material and energy
balance (0.5 – 1 day per focus area)
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Task 2a: Staff meeting and training
Staff meeting (0.5 day)
• Inform staff about assessment and their roles
• Get their support
Staff training
• Importance of energy efficiency
• How to carry out an assessment
• Energy equipment & monitoring instruments
• Financing, GHG Indicator, other…
Information:
• Posters, newsletters, meetings
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Task 2b: Prepare focus area flow
charts (>2 hours per focus area)
Flow chart for each focus area
•
Different steps of the focus area
•
Most important inputs (resources) for each
step
•
Most important outputs for each step
•
Intermediate and final products between the
steps
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Energy
Focus
Task 2b: Prepare focus area flow
charts (cont.)
Different types of focus areas require
different types of charts:
• Production step: process flow diagram
• Auxiliary systems: layout chart for steam
or
compressed air distribution system
• Specific major equipment: major
equipment and
all auxiliary equipment
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Task 2c: Walkthrough of focus
areas (>0.5 day per focus area)
Purpose of the walkthrough(s)
• Better understand the focus area
• Get feedback from production staff about
problems…
• Write down visible losses of energy and
materials
• Obtain information about quantities and costs
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Worksheet 14: Walkthrough
observations
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Task 2d: Quantify inputs and outputs
and costs to establish a baseline
Time required depends on information available
Why a baseline?
•
•
Measure improvements after implementing
options
Management only convinced to continue if
you can show savings
Collect the following information:
•
•
•
Quantities (e.g. tons of coal per day)
Costs (e.g. $ per ton of coal)
Other characteristics (e.g. temperature of
water going in and out of the boiler, pressure)
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Worksheet 13: Process flow chart,
inputs/output, energy balance
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Energy
Focus
Task 2d: Quantify inputs and outputs
and costs to establish a baseline (cont)
Examples of material-related
parameters for the boiler house
• Fuel and electricity
• Water
• Blow down
• Ash
• Steam produced
• Condensate recovered
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Energy
Focus
Task 2d: Quantify inputs and outputs
and costs to establish a baseline (cont)
Examples of energy-related parameters
for the boiler house
•
Pressure
•
Temperature
•
Flue gas composition
•
Draft
•
Radiation
Note: specific monitoring equipment may be
needed
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coal
(lignite)
Energy
Focus
electricity
water spray
wate
r
BFW pump
Standard
parameters:
##
conditionin
g chemical
##
(actual)
coal yard
coal
(lignite)
manual
screening
and crushing
## (actual)
process
step
steam generation
process
paramete
r
pressure
rating
equipme
nt
Operatin
g
boiler
## (actual)
wet stream
steam separation
electricity
##(actual)
air:
## (actual)
## (standard)
fugitive emissions
electricit
y
ID fan
Standard
parameters:
coal (lignite) ## (actual)##
Head developed
##
PROCESS STEP REFERENCE
Standard
FD fan
standard parameters:
##
##
Coal fines( carpet loss)
Hot condensate (#)
## (actual)
blow down loss: ##
unburnt in ash: ##
Hidden loses:
H2 & moisture:
##
Radiation:
##
Moisture in air:
##
dry steam (##)
##(actual)
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Task 2e: Quantify losses through a
material and energy balance
(0.5 – 1 day per focus area)
• Try to “balance” inputs and outputs
(what goes into a process must come
out!)
• Identify “losses”: energy, products,
materials
• Calculate costs of losses
Be practical: this is the most difficult task!
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Task 2e: Quantify losses through a
material and energy balance
Energy
Focus
coal
(lignite)
water spray
coal yard
Coal fines( carpet loss)
fugitive emissions
coal
(lignite)
electricity
wate
r
BFW pump
Standard
parameters:
8 t/hr at 13 kg/cm2
FD fan
standard parameters:
100 mmWC;
30o C & 15 kW at
conditionin
g chemical
manual
screening
and crushing
17.0 Mk/hr (actual)
coal (lignite) 1.1 t/hr
(actual)
0.5
PROCESS STEP REFERENCE
Mk/hr
(actual) process
steam generation
step
process
paramete
r
Standard
2
pressure 12 kg/cm
6 t/hr
rating
equipme
nt
boiler
Operatin
g
10
kg/cm2
4 t/hr
11.40 Mk/ht
wet stream
(actual)
steam separation
electricity
9 kW(actual)
air:
12.61 t/hr (actual)
Hot condensate (3%)
14.34 t/hr
0.09 Mk/hr (actual)
(standard)
dry steam (97%)
11.3 Mk/hr
electricit
y
ID fan
Standard
parameters:
250 mmWC
Head developed
200o C & 20kW
Flue gases
loss: 13.2%
(actual)
2.25 Mk/hr
(actual)
blow down loss:
1.4%
0.24 Mk/hr (actual)
unburnt in ash: 4.85%
0.83 Mk/hr (actual)
Hidden loses:
H2 & moisture:
2.5 Mk/hour (actual) 14.4%
Radiation:
0.17 Mk/hr (actual) 1%
Moisture in air:
0.03 Mk/hr (actual) 0.15%
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Step 3: Identification of Options
Purpose: identify opportunities to improve
energy efficiency for the selected focus areas
Output: list of options that will be investigated
on their feasibility in step 4
Tasks and minimum time:
• Task 3a: Determine causes of losses (0.5 day per focus
area)
• Task 3b: Identify possible options (0.5 day per focus area)
• Task 3c: Screen options for feasibility analysis (0.5 day)
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Task 3a: Determine causes of
losses (0.5 day per focus area)
Brainstorm session with staff and others
Ask the question: Why are these losses
occurring?
Keep asking until you found the “root
cause”
Look for different causes:
•
•
•
•
Man
Method
Machine
Material
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Task 3a: Determine causes of
losses (cont.)
Fishbone diagram
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Energy
Focus
Task 3a: Determine causes of
losses (cont.)
Material losses with an energy-related
cause
• Low dye exhaustion caused by low
temperatures
• Scale losses caused by cold air infiltration in
rolling mills
Energy losses with an energy-related
cause
• High electricity use in rollers caused by
overheating of bars in rolling mills
• High transmission and distribution losses
caused by low power factor
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Energy
Focus
Task 3a: Determine causes of
losses (cont.)
Energy losses with a material-related
cause
• Inefficient combustion caused by improper
sizing of coal
• High steam consumption in dyeing process
caused by too high liquor-to-cloth ratio
Poor product quality with an energyrelated cause
• Thin zinc layer caused by high temperature
of
zinc bath in galvanizing
• Uneven strength of forged products caused
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Energy
Focus
Task 3a: Determine causes of
losses (cont.)
Other examples
• Low boiler efficiency caused by operating at
<50% capacity
• High electricity consumption due to
compressed
air leaks
• High steam consumption caused by uninsulated
flanges
• High electricity consumption due to motor
operating at varying loads
Do you know of any other examples?
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Task 3b: Identify possible options
(0.5 day per focus area)
Brainstorm session with staff and others
Ask the question: What can we do to
reduce energy losses?
Options can fall in the following categories:
•
•
•
•
•
•
•
•
Good housekeeping
Improved process management
Production process / equipment modification
New technology / equipment
Input material substitution
On-site reuse / recovery
Production of useful by-product
Product modification
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Energy
Focus
Task 3b: Identify possible options
(cont.)
A combination of options is likely
Poor bleaching can be solved by:
• Reducing the liquor-to-cloth ratio
• thereby increasing the bleaching bath
temperature
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Task 3c: Screen options for
feasibility analysis (0.5 day)
Put identified options in three groups:
• Options that can be implemented directly
• Options that require further analysis
• Options that can be considered at a later
stage
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Worksheet 15: Causes, identify
options and screening
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Step 4: Feasibility Analysis of
Options
Purpose:
• Determine which options are technically,
financially and environmentally feasible
• In what order feasible options should be
implemented
Output: proposal that is approved by top
management with:
• Recommended options for implementation
• How to do this
• List of options that require further investigation
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Step 4: Feasibility Analysis of
Options
Tasks:
• Task 4a: Technical, economic and
environmental evaluation of options
• Task 4b: Rank feasible options for
implementation (0.5-1 day)
• Task 4c: Prepare implementation and
monitoring proposal for top management
approval (2-3 days)
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Task 4a: Technical, economic and
environmental evaluation of options
The Team should (time depends on options):
•
Investigate which options are technically,
economically and environmentally feasible
•
Identify other possible reasons for
implementing the option
•
Think of possible barriers to implementing
the option
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Worksheet 16: Option analysis and
implementation (part for feasibility analysis)
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Task 4a: Technical, economic and
environmental evaluation of options
Energy
Focus
Technical
•
Location of power, steam, compressed air lines
•
Handling capacity of existing system for new
equipment
Environmental
•
Fluorescent tube lights use less electricity than
incandescent lamps but contain toxic materials
•
Bag filter reduces dust but uses electricity
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Task 4b: Rank feasible options for
Implementation
Team meeting to give each option a
Rank (0.5 – 1 day):
1. Implementation in short term (e.g. <1 year)
2. Recommended for implementation but in the
longer term (e.g. 2-3 years)
3. Recommended for further investigation or
consideration at a later stage
4. Unfeasible options
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Task 4b: Rank feasible options for
Implementation (cont.)
For options to be implemented (rank = 1)
(time depends on options):
•
•
•
•
•
Implementation and monitoring tasks
Who is responsible
Completion dates
How much staff time required
Comments
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Worksheet 16: Option analysis and
implementation (part for implementation)
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Worksheet 17: Ranking of options
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Task 4c: Prepare implementation and
monitoring proposal for top
management approval
Prepare Implementation and Monitoring
Plan
• Introduction
• Number of options identified, options
investigated for feasibility, feasible options,
options requiring further investigation, and
unfeasible options
• Options recommended for implementation in
the short term
• Worksheets for each option
Obtain management approval
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Step 5: Implementation and
Monitoring of Options
Purpose
• Implement feasible options in order of priority
• Monitor results
• Discuss findings with top management
Output
• Improved energy efficiency, reduced costs and reduced GHG
emissions
• Agreement with top management about the next steps
Tasks
• Task 5a: Implement options and monitor results (time depends
on options)
• Task 5b: Evaluation meeting with top management (0.5 day)
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Task 5a: Implement options and
monitor results
Carry out the Implementation and
Monitoring Plan
Record results for each option:
• Economic results
• Environmental results
• Other results: e.g. any other benefits from the
option and barriers encountered
Communicate results to staff
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Worksheet 16: Option analysis and
implementation (part for feasibility analysis)
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Task 5b: Evaluation meeting with
top management (2-4 hours)
Purpose:
• Close the first round of energy efficiency projects
• Gain management commitment to continue with energy
efficiency
Discuss the following:
• Results
• How to communicate results internally and externally
• How to continue
• Additional options for implementation / investigation
• New focus areas to carry out more assessments
• How to integrate energy management throughout the
company’s systems
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Step 6: Continuous Improvement
Purpose: ensure that the company continues
improving energy efficiency in a systematic
way that is integrated in company processes
(these are the key components of Cleaner Production!!)
Output:
• Continuation of implementing energy efficiency
options
• Integration of energy management into
company processes
Task 6a: Prepare proposal to continue with
energy efficiency (2-3 days)
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Task 6a: Prepare a proposal to continue
with energy efficiency for top
management approval
Write a proposal
•
Based on what was agreed with top management at
the evaluation meeting
•
Considering new focus areas and options identified for
later implementation / investigation
•
Include how to integrate energy management into
company processes!!
Seek top management approval
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In Summary:
The Company Energy Efficiency
Methodology helps companies to:
• Save energy
• Reduce costs
• Protect the environment
Now and in the future!
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Training Session on the Company
Energy Efficiency methodology

How to become
Energy Efficient
THANK YOU
FOR YOUR ATTENTION
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Disclaimer and References
• 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 materials 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)
• The textbook chapter is available on
www.energyefficiencyasia.org
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