Energy Efficiency in Industry Show me the Money By Fabiani Appavou fabiani.appavou@gmail.com.

Energy Efficiency in IndustryShow me the Money

By Fabiani Appavoufabiani.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/yearWith 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 MauritiusSome 200 GWh of electricty can be savedEnergy 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 EfficiencyPassive 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 involvementEnergy savings : 10 – 15 %

Approaches to Energy Efficiency

The Rebound EffectThe Rebound Effect

Approaches to Energy Efficiency

Approaches to Energy Efficiency

• Active Energy EfficiencyActive Energy Efficiency

Intelligent use of energy to achieve the same result with lessE.g. Automation and Regulation to ensure optimal functioning of processesEnergy 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

IdentifyEvaluate

RealiseMonitor

A Continuous Cycle

• IdentifyIdentify- Perform an Energy Audit of the different processes- Understand the energy flows - Identify the low hanging fruits such as leaks, insulation needs, lighting• EvaluateEvaluate- Understand the energy savings potential and the cost involved- Allow proper planning of investments and priorities• RealiseRealise- Usually, the low hanging fruits are addressed first- Some actions don’t even involve any costs and can be

implemented immediately• MonitorMonitor- 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

How do you connect all 9 dots arranged in a square with only 4 straight lines?

Nine Dot ProblemNine Dot Problem

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 pumps2. 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