Energy Efficiency in Industry
Show me the Money
By Fabiani Appavou
fabiani.appavou@gmail.com
Why is Energy Efficiency an Issue?
Energy Efficiency (EE) - Utilisation of energy in the most cost
effective way to carry out an activity or a process whereby
waste energy is minimised and overall consumption of primary
energy resources reduced
In essence, same or more with less energy
Drivers of Energy Efficiency:
• Rising energy prices
• Energy Security
• Climate Change
• Green Jobs
Why is Energy Efficiency an Issue?
Source: BP Statistics
Why is Energy Efficiency an Issue?
Source: BP Statistics
Why is Energy Efficiency an Issue?
Benefits of Energy Efficiency
Why is Energy Efficiency an Issue?
Benefits to industries:
• Energy savings leads to lower costs and thus increased competitiveness
• Reduce environmental impacts => powerful marketing tool for green
industries
However !!!!!
Barriers to EE implementation:
• Lack of awareness and perceived risks
• Conflict of investment priorities
• Lack of Benchmarking ( Best Practices)
• Absence of Technologies
• Regulating pressure
The Myths…..
1.
Energy Efficiency is all about ineffectiveness, reduced productivity and
reduced comfort
2.
Too costly especially in during an economic downturn
3.
Savings do not outweigh the cost and the risks are quite significant
Consider a company with an energy bill of Rs 60 million/year
With EE measure bringing a 10% energy reductions, the costs
will decrease by Rs 6million.
If we are to increase the sales by the same amount, lots of effort
in advertising, product design would be needed with
much uncertainty…
The Myths…..
Some facts:
• Savings are for real…..
IBM saved $43 million in 2011 due to EE measures ; $400
million since 1990.
IBM is currently the US Greenest company.
In June 2012, company’s profit rose by 6% despite fall in
revenues.
• Huge Energy savings Potential
Recent study shows that savings up to Rs
1,110 million is possible in Mauritius
Some 200 GWh of electricty can be saved
Energy savings potential up to 20%
achievable in some sectors.
The Myths…..
IRR of EE Projects over a period of 5 years
Source: UNIDO
The Usual Suspects
Main systems that consume energy in Industry:
• HVAC systems
• Compressed air system
• Heating and cooling processes
• Electrical system
• Lighting
• Motors
• Boilers
• Refrigeration
• Drying
• Waste Treatment
Approaches to Energy Efficiency
• Passive Energy Efficiency
The use of material or devices that use less energy to perform the same
function.
E.g. Lighting, high energy efficient motors…
It is termed passive as once implemented it will save energy without any
human involvement
Energy savings : 10 – 15 %
Approaches to Energy Efficiency
The Rebound Effect
Approaches to Energy Efficiency
Approaches to Energy Efficiency
• Active Energy Efficiency
Intelligent use of energy to achieve the same result with less
E.g. Automation and Regulation to ensure optimal functioning of processes
Energy savings: 5 – 15 %
Both approaches are needed and complement each other
- Active Energy Efficiency is needed so as to maximise and
sustain the savings obtained from Passive EE actions
- Starting point is however Employee Awareness and
Behavioural change
-
Approaches to Energy Efficiency
Energy Efficiency is not a ONE TIME PROJECT.
It is a CONTINUOUS CYCLE……
And this is a good thing!!!!!
WHY ?
A Continuous Cycle
Monitor
Evaluate
Identify
Realise
A Continuous Cycle
•
•
-
Identify
Perform an Energy Audit of the different processes
Understand the energy flows
Identify the low hanging fruits such as leaks, insulation needs, lighting
Evaluate
Understand the energy savings potential and the cost involved
Allow proper planning of investments and priorities
• Realise
- Usually, the low hanging fruits are addressed first
- Some actions don’t even involve any costs and can be
implemented immediately
• Monitor
- Monitoring is needed to ensure that the measures
are effective
- Use of management and control systems
- Energy savings : 2- 8 %
Energy Benchmarking
A New Design Mentality
Nine Dot Problem
How do you connect all 9 dots arranged in a
square with only 4 straight lines?
A New Design Mentality
A New Design Mentality
A New Design Mentality
Geographer’s Solution
A New Design Mentality
Origami Solution
A New Design Mentality
Redesigning an industrial power loop can reduce power use by up to 92%
1. Use Bigger Pipes and smaller pumps
2. Lay the pipes first then the equipments
Source: Amory Lovins, RMIT
Financing EE improvements: ESCO
ESCO: Energy Service Companies
- An ESCO allows a client to upgrade its facilities and reduce energy costs
by investing future cash flows from energy savings
- ESCO’s are not financial institutions
- They perform energy audits, design and install the proper technology
to reduce energy use and provide a guaranteed level of savings
- ESCO’s get reimbursed together with a profit with energy savings made
Bernard Jamet, UNEP
EE & RE Synergies
• Twin Pillars of Sustainable energy: the more efficiently
energy services are delivered, the faster renewable energy
can be deployed
• RE technologies are mostly suited for distributed purposes
thereby reducing lost in transmission and transport
• Efficient Building designs that utilise passive solar heat and
light reduce their energy consumption
• Savings from EE improvements can be used to finance RE
sources such as PV
• The more you reduce the energy demand of an industry, the
easier it is to deploy renewable energy within that industry
premises
GSR 2012, REN21
Concluding Remarks
• The tourism industry is embracing EE measures
- Long Beach hotel has implemented EE equipments but also a
building management system
• Similar measures are being taken in the textile industry
- Denim Ltd have purchased new weaving machine and is
implementing various energy efficient practices .
- RT Knits has realised a drop of 30% in fuel consumption
- Tamak has already achieved a 20% savings on electricty costs and is
currently undergoing an energy audits
Concluding Remarks
Thank you for your attention
Questions & Comments