Enhancing Industrial Energy Efficiency and Energy ...

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Enhancing Industrial Energy Efficiency and Energy Management Systems

Tareq Emtairah, Marco Matteini

Department of Energy

Promoting Sustainable Energy Solutions and Clean Technologies in CIS Countries

23 November 2017

Vienna International Centre

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1. Context

2. Barriers to and Opportunities for EE in Industry

3. Energy Management Systems (EnMS) and ISO 50001

4. What EnMS-ISO 50001 can achieve

5. Supply and value chain for EnMS-ISO 50001

6. Programmes to promote and support EnMS-ISO 50001

7. Final considerations

Content








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Industry is responsible for 40% of global final energy consumption (IEA, 2015)

Industry is the single largest source of GHG emissions, accounting for about 32% of global emissions

Over last two decades industry emissions have largely grown in Lower and Upper Mid Income Countries

Source: IPPC Working Group III – Mitigation of CC, 2014

Greenhouse Gas Emissions by Economic Sectors

Industry Energy and Carbon Footprints








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Cumulative CO2 reductions by sector and technology in the 2DS to 2050

Industrial Energy Efficiency and Climate Change

Source: IEA, 2015








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ENERGY

CONSUMPTION

DATA

TECHNOLOGY PEOPLE

Behaviour

Operations

Leadership

Competence

Best Available Technology

EE Investment

Weather

Reaction

Analysis

Production

Product Mix

Energy Consumption and Efficiency in Industry

DRIVING

FACTORS

Source: W. McLaughlin for UNIDO








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1. Context







Content








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• Management focus is on production & volumes, not on EE

• Lack of information and understanding of own energy performance

• Lack of adequate skills for identifying, assessing, developing and implementing EE measures and projects

• Poor or misused monitoring systems and data

• First costs more important than recurring costs disconnection between capital and operating budgets

• Staff behavior and attitude

• Financing constraints

• Lack or limited availability of IEE services and product

BARRIERS to Energy Efficiency in Industry








8 8 8

Sector or Product Developed countries

Developing countries

Petroleum refineries 10-15 70

Steam cracking 20-25 25-30

Ammonia 11 25

Alumina production 35 50

Iron and Steel 10 30

Cement 20 25

Glass 30-35 40

Pulp and Paper 25 20

Food and beverage 25 40

Other sectors 10-15 25-30

Energy Savings potential from EE (%)

Source: UNIDO, 2011

Benchmarking study in Foundry Sector

- 57%

- 43%

Better management & low cost initiatives

Average efficiency

Capital investment

Best performance

Product Costs

Resource Savings

Source: Adapted from IFC, 2010

Where are opportunities for EE improvement?








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Problem: Energy efficiency is not integrated into daily management practices of industry.

Solution: A systematic approach is needed and staff at all levels within an organization need to be engaged

in management of energy on an ongoing basis.

Energy Efficiency in Industry

Evidence: Most energy efficiency in industry is achieved through and depends on how energy is managed rather than through installation of new technologies








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1. Context







Content








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Purpose of EnMS-ISO 50001

“..to enable an organization to follow a systematic approach in achieving continual improvement of energy performance, ..”

Scope of EnMS-ISO 50001

It is applicable to organizations of all sizes

ISO 50001 does NOT prescribe specific performance criteria or targets with respect to energy.

Energy Management System in line with ISO 50001

facilities equipment personnel

systems processes procurement

measurement design doc. & report

ISO 50001 targeted to

• Industry

• Power sector

• Commercial & buildings

• Transport

• Others








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Source: ISO 50001:2011

Energy policy

Energy planning

Implementation

and operation

Checking

Nonconformities, correction, corrective and preventive action

Internal audit of

the EnMS

Management

review

Monitoring, measurement and

analysis

Continual improvement

Policy Management Review

Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

Yes Management

Responsibility

Source: UNIDO EnMS Programme

ISO 50001 - EnMS Structure








13 13 13

kWh ($ + CO2)

Commit to

change

Plan the

changes

Make the

changes

Check the

results

ISO 50001 - EnMS Simplified









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kWh ($ + CO2)

EnMS – Managing and improving all 3 pillars









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EnMS - Productive Change & Continual Improvement

Top management engage in EE

Challenge operations and established practices

Build internal technical skills

Data and analysis discipline

Focus on no/low-cost measures

Continual improvement

SUSTAINED ENERGY SAVINGS & INVESTMENTS!

EE INTEGRATED








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1. Context







Content








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• Energy savings

• Energy cost savings

• Non-energy benefits (water savings, material savings, maintenance costs reduction, etc.)

EnMS Quantitative Achievements

Most industrial enterprises that implemented EnMS achieved average annual energy intensity reductions of 2-3% against 1% reduction of business as usual (IRL, NET, DEN, SWE, USA)

For companies new to energy management, savings during the first 2 years are 10-20%

UNIDO experience: organization-wide energy savings in first 1-2 years range from 4% to 15%, with little or no capital investments

• GHG and other pollutants emission reductions

• Resources for EE

• Reduced response time to dev.

• ………………………….








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• Management focus for energy efficiency

• Informed decision making

• Improved control of production operations and energy/power demand

• Staff competencies development

• Behavioral/cultural change for EE and continual performance improvement

• Continuity of performance through changes of personnel, products and processes

• Improved quality of production

• Systematic and structured activities

• Positive company/corporate image (operational excellence, environmental stewardship, social responsibility, etc.)

• …………………………..

EnMS Qualitative Achievements








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COREX

DR-Plant

Steel shop

Mills RHF Electricity demand : 160 MW

Manpower: 548 permanent employees

Sales output: 1,2 million ton HRC/annum

Arcelormittal Saldanha Works

Energy Efficiency Achievements 2011

Energy Management System Implemented

No. of Projects/Measures 11

Total Capital Investment (USD) 0

2011 Gross Financial Savings (USD) 9,076,000

Overall Payback Period (in years) 0

2011 Energy Savings Norm. (GWh) 79.95

2011 GHG Reductions (tons CO2) 77,000

Adjustments/optimization of production operations, energy systems optimization, fuels switching, etc.....

driven by EnMS!

2012 Energy Savings (Norm.) > 100 GWh

Example 1 : Iron and Steel – South Africa








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Open joint stock company (about 10% on Moldovan market)

185 employees

Management started to look into EE in 2009 to reduce production costs and impact of increased energy prices

LACTIS improvements 2012


No. of Measures/Projects 11

Total Capital Investment (USD) 6,900

Gross Monetary Savings (USD) 22,000

Overall Payback Period (in years) 0.32

2012 Energy Savings Norm. (MWh) 328

2012 GHG Reductions (tons CO2) 160

LACTIS J.S.C

Value of EnMS/EE investments planned in 2012 for 2013-2014 was 410,000 USD

80% implemented

Example 2 : Dairy – Moldova








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Example 3 : Power Generation – Macedonia

Mining and Energy Combine (REK) Bitola meets over 70% of country’s demand for electricity

Coal-lignite thermal power plant, total installed generating capacity of 700 MW and annual generation of 4,000 GWh

Production in 2016 was 2,685 GWh; own consumption was 286.2 GWh

REK BITOLA

REK BITOLA improvements in 2016


No. of Measures/Projects 4

Total Capital Investment (EUR) 0

Gross Monetary Savings (EUR) 322,000

Overall Payback Period (in years) 0.00

2016 Energy Savings Norm. (MWh) 8,502

2016 GHG Reductions (tons CO2) 10,528

2.97% of total consumption

In 2016 EnMS limited to power generation facilities, in 2017 EnMS extended to include mining operations

In 2017 EnMS implementation being replicated in all branches of ELEM, the national largest power utility

Payback time: 22-24 days








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1. Context







Content








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Structure and Stakeholders

EnMS implementation and energy performance improvement

Policy Makers

Policy Implemen. Enterprises

EnMS Consultants

Financiers & Investors

Third-party certification to ISO 50001

ISO 50001 Lead Audit.

Certification Bodies

Accreditatio Bodies

EnPerform. Verifiers

Supply and value chain for EnMS-ISO 50001

Policies & Regulations








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EnMS implementation and energy performance improvement

Policy Makers

Policy Implemen. Enterprises

EnMS Consultants

EnPerform. Verifiers

Policies & Regulations

Financiers & Investors

Lead Audit

3rd-party certification to ISO 50001

Cert. Body

Accr. Body

• Ministries

• Energy Agencies

• Power utilities & energy suppliers

• Others

• Energy Eff. consultant

• ESCOs

• Manage. system consultant

• Power utilities & energy suppliers

• Others

• Energy Eff. consultant

• Energy Agencies

• IPMVP certified experts

• ESCOs

• Others

Structure and Stakeholders

Supply and value chain for EnMS-ISO 50001

• Industry

• Transport

• Power & Water Utilities

• Buildings

• Logistics

• Cities

• Others








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1. Context







Content








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Success Factors for EnMS-ISO 50001 Deployment

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Level and quality of policy support, including regulation, for promotion & implementation of EnMS/ISO50001

Availability of competent EnMS workforce on the “Supply” and the “Demand” sides

Credible demonstration to organizations and the market of EnMS/ISO50001 tangible benefits

Policies & Institutions

Conformity Assessment

EnMS Skills, Implement. &

Services








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Policies that can support EnMS-ISO 50001

Sticks Energy or Carbon taxes Environmental legislation Mandatory implementation Energy Saving Obligation Schemes and White Certificates Mandatory competencies/professional requirements Carrots Tax avoidance and rebates Cost-free or subsidized EnMS expert assistance and/or energy audits Funding schemes for energy management systems Long-term voluntary agreements Training and qualification programmes Tambourine Peer-to-peer networks Award and recognition programmes Adapted from Clemens Rohde








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Germany

Energy taxes

Mandatory energy audits for non-SME

Funding schemes for energy management systems

Energy efficiency networks

Netherland

Environmental law obligation to make IEE investments

Long-Term Agreements

including

TA for EnMS

Subsidies for audits

Financial incentives

Ireland

Energy Agreements Programme including

Training

Financial support

Expert advice and assistance for implementation

Examples of Policies Frameworks for EnMS-ISO 50001








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Policies Frameworks for EnMS-ISO 50001

EU Energy Efficiency Directive – Article 7 & Article 8

…………………. ………………….








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FYR of Macedonia









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Combining Skills Development and Results The UNIDO EnMS Capacity Building and Implementation Programme

COMMITTraining

PLANNING Training

Results: • Energy Policy • Roles &

Responsibility matrix • Significant Energy

Uses • Baseline • Energy Performance

Indicators • Opportunities list &

action plans • Energy savings & …

Results: • Staff trained on

selected SEUs • Operations &

controls improved • Procurement plan • EE measures

implemented • Energy & cost

savings • Performance

improvements

Results: • Energy performance

checked, verified and reported

• Energy performance reviewed by top management

• Decisions for next period based on internal audit

• Energy savings & … • Performance impr.

Results: • Trainee qualified

as Energy Management System Expert

• EnMS implemented in PE

• Energy & cost savings

• Performance improvements

time

1-2 months 3 days 4 days 3 days 3 days 4-6 months 4-6 months 2-3 months 1.5-2 months

Results: • Draft Energy Policy • Draft Roles &

Responsibility matrix

• Initial data collection

IMPLEM. Training

CHECKING Training

PE team work to implement EnMS



PE team work to implement EnMS EXAM

½ day

Preparation

Legend

Ongoing and periodic communication through webinars, emails and phone calls between international trainers and PE teams to review progress, discuss issues and provide guidance.

PE team A Partner Enterprise (PE) team is formed by the PE’s staff participating in the EXPERT program plus 1-2 national consultants trainees.

Plant visits by national EE consultants trainees








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UNIDO EnMS CBI Programme

Costs and Benefits Analysis – UNIDO Pilot in FYR of Macedonia

12 Partner enterprises (65% success rate)

23 Nat. Consultants/Expert Trainees

Full cost/value of Nat. Consultants

Include Progr. develop. and implementation

No inclusion of UNIDO staff & support costs

Energy Savings 1 Yr: 13.19 GWh (67% no cost)

Energy Savings 5 Yr: 165 GWh

Money savings 1 Yr: 862,700 USD (55% no cost)

Money savings 5 Yr: 10,792,000 USD

Without considering non-energy benefits!








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Partnerships for Scaling-up

Utility Programme in FYR of Macedonia

Partnership UNIDO IEE Project and EVN Macedonia (Power Utility)

6+2 new companies implementing EnMS, including EVN Macedonia

6 UNIDO Qualified National EnMS Experts

7 new EnMS Expert Trainees, 2 from EVN Macedonia

Cost-sharing of Qualified National EnMS Experts

• 1/3 UNIDO project; 1/3 EVN Macedonia; 1/3 Beneficiary company

75% National Trainers – 25% International Trainers

EVN Macedonia’s Goals Start providing EnMS-EE Services to Clients








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1. Context







Content








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Designing Programmes to support EnMS-ISO 50001

What do you want to achieve?

• How are you going to monitor and evaluate it?

• Segment/select carefully your target “clients”

Take in due account the existing country baselines for IEE-EnMS

• Awareness, skills, market services, technology providers, etc.

Take in due account the complexity of EnMS supply/value chain

Strive for long-term programmatic framework perspective

• Take into account resistance to change

• Market creation and transformation

• 3 years project or 10 years programme

Who is going to pay

Who is going to benefits








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THANK YOU!

Mr. Marco MATTEINI

Industrial Development Officer

E-mail: [email protected]

Industrial Energy Efficiency Division


UNIDO

For more information:








mailto:[email protected]

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ADDITIONAL INFORMATION

Mr. Marco MATTEINI

Industrial Development Officer

E-mail: [email protected]

Industrial Energy Efficiency Division


UNIDO

For more information:








mailto:[email protected]

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UNIDO’s EnMS-ISO 50001 journey

2008 2007

Mar

ANSI-ABNT NWI Proposal to ISO

TMB

May

2009 2010 2011

UNIDO EGM on EnMS in Industry

2007

EGM = Expert Group Meeting








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2008 2007

Mar

ANSI-ABNT NWI Proposal to ISO

TMB

Launch of UNIDO Project on promotion of international EnMS standards

Jul

May

Sep

ISO TMB establishes ISO PC 242

Feb

Apr

UNIDO-SAC EGM on EnMS Standards in Beijing

ISO PC 242 1st Meeting Washington

Sep

Aug

UNIDO-ABNT EGM on EnMS Standards in Sãu Paulo

ISO PC 242 1st CD

ISO 50001

Oct

Incorporating many of UNIDO Framework for Action findings

2009 2010

DEVELOPMENT & IMPLEMENTATION OF UNIDO EnMS PORTFOLIO

UNIDO-DPI EGM on EnMS in Thailand

Ongoing promotion with counterparts of EnMS and engagement in ISO 50001 development

2011

Release of ISO 50001:2011

Jun

developed in < 3 years!

EnMS projects started/to start in 11 countries

Jun

UNIDO EGM on EnMS in Industry

2007

EGM = Expert Group Meeting








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DEVELOPMENT & IMPLEMENTATION OF UNIDO EnMS PORTFOLIO

2011

Release of ISO 50001:2011

Jun

developed in < 3 years!

Jun

2012 2013 2014 2015 2016

Apr

UNIDO EnMS Internal EGM in Vienna

EnMS programs started/to start in 11 countries

Apr

UNIDO Intern. EGM “Sustainable Energy Standards” in Vienna

EnMS programs in 12 countries

Jun

EnMS programs in 17 countries

Oct May

UNIDO Intern. EGM on EnMS in Vienna

UNIDO continued participation to experts discussion and standards development

Development of ISO 50002, ISO 50003, ISO 50004, ISO 50006 and ISO 50015 …….

Development HLS ISO 50001 …………………………………..……..


Jun

1st Meeting of ISO TC 301

2017

May

UNIDO Operating

Agent of EMWG








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Planned

activities

South Africa Moldova Russia Turkey Ecuador Malaysia Thailand Viet Nam Philippines

Indonesia Egypt Iran Ukraine Colombia Macedonia Myanmar India Georgia

Operational in 18 countries

Planned activities in 10+ countries

Other donors Swiss State Secretariat for Economic Affairs

UK Department for International Development

Government of South Africa

Government of Italy

Government of Austria

Projects ongoing

UNIDO Global EnMS-ESO Programme – June 2017








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2008

2012 2016

Decision-makers reached

Enterprises trained in EnMS

Consultants trained in EnMS

Enterprises with EnMS

250 +

35

200 +

600 +

600 +

2,000 +

6,000 +

400 +

Operational in 18 countries (as of Sep 2017)

12 Countries at the end of 2012

Cumulative direct final energy savings (GWh)

7,000 +

UNIDO-GEF Global EnMS-ISO 50001 Programme

30 +








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How much energy is 7,000 GWh?

Annual energy

consumption of

1,150,000

EU households

Annual energy production

of 2,000 MW of installed

wind power

CO2 emissions of

1,750,000 middle class

cars (running 12,500 km

per year)

Annual cost savings of beneficiaries companies in 2015 exceeded USD 100,000,000 without considering non-energy benefits

Direct GHG emission reductions of more than 4.3 million tCO2








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Denmark Vol Yes* Yes Yes* Yes Yes Yes Yes Lim 60%

Ireland Vol Yes Yes No Yes Yes Yes Yes Yes 25%

Sweden Vol Yes** Yes Yes** Yes Yes No Yes No 50%e

United States Vol No Yes No Yes No Yes No Yes <5%

Source: 2007, A. McKane for UNIDO

The importance of a Programmatic Policy Approach








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Germany


Policy Instrument Type of

Instrument Areas of

Application Description Remarks

Eco tax cap for manufacturing industry

Financial Large enterprises SME Energy audits EnMS

Aimed to reduce electricity tax burdens on companies in the manufacturing sector. Companies need to prove that they have implemented an EnMS. For SMEs, an alternative system is enough (e.g. DIN EN 16247-1).

Energy Intensity as indicator. Assessment being conducted.

Special equalization scheme

Financial Electricity-intensive enterprises

EnMS

It provides for reduction of renewable surcharge for energy intensive companies. A prerequisite to obtain the reduction is to have an operating certified energy or environmental management system ( in line with ISO 50001, formerly EN 16001 or EMAS)

Companies with < 5 GWh can operate DIN EN 16247-1 or other systems for EE.

BAFA support program for EnMS

Financial Large enterprises SME EnMS

Aimed to support certification of EnMS for companies. Funding for initial certification, for purchasing metering technology and/ Or software for an EnMS; for external energy consultant; for training costs of employees. Limited to EUR 20 000 in 36 months.

Energy efficiency networks

Information Large enterprises SME

Networks of companies with energy costs > EUR 500k from different sectors come together to enhance their energy efficiency and share their best practice - focus is on cross-cutting technologies.

EnMS piloted in Mexico in 2016.








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Denmark


Policy Instrument Type of

Instrument Areas of

Application Description Remarks

Voluntary agreement scheme

Voluntary agreement

Large enterprises SME EnMS

Since 1996 companies were reimbursed CO2 tax if they implemented an EnMS. The new scheme (2013) reimburses part of the public service obligation (PSO) tariff. It has stricter conditions to be considered and applies to SMEs and large enterprises.

Energy management light

Information SME EnMS

System and guideline targeted to SMEs on how to implement an EnMS in line with EN 16001 or part of it

Energy saving obligation targeted at energy companies

Financial Large enterprises SME Energy audits

Energy companies need to ensure energy savings amounting to 12.2 PJ per year. Savings can come from agreements with end users. Energy companies may provide energy audits or grants connected to energy savings, making more attractive for SMEs and large enterprises to do EE.

Established in 1995. Denmark EEOS is the only one with top savings in Industry








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CBA - FYR of Macedonia Projected Replication

10 Partner enterprises

12 UNIDO National EnMS Expert

Include Progr. preparation and implementation

No inclusion of UNIDO staff & project support costs

Target Final Energy Savings 1 Yr: 10 GWh

Target Money Savings 1 Yr: 650,000 USD (50% no cost)

Without considering non-energy benefits!

UNIDO EnMS CBI Programme








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