GReening business through the Enterprise Europe Network Renewable Energy Sources and Rational Use of...

GReening business through the Enterprise Europe Network

Renewable Energy Sources and Rational Use of Energy


Motivation on energy effciency

• The question is no more for the future but for the present: what if “developing” countries get to occidental standards of consumption?

• Among the basic commodities--grain and meat in the food sector, oil and coal in the energy sector, and steel in the industrial sector--China now consumes more than the United States of each of these except for oil. It consumes about twice as much meat and twice as much steel

• If China's economy continues to expand at 8 percent a year, its income per person will reach the current U.S. level in 2031.

• "If at that point China's per capita resource consumption were the same as in theUnited States today, then its projected 1.45 billion people would consume the equivalent of two thirds of the current world grain harvest. China's paper consumption would be double the world's current production. There go the world's forests.“

• If China one day has three cars for every four people, U.S. style, it will have 1.1 billion cars. The whole world today has 800 million cars. To provide the roads, highways, and parking lots to accommodate such a vast fleet, China would have to pave an area equal to the land it now plants in rice. It would need 99 million barrels of oil a day. Yet the world currently produces 84 million barrels per day and may never produce much more.

• India by 2031 is projected to have a population even larger than China's. and 3 billion other people in developing countries who are also dreaming the "American dream.“


Defining efficiency

• Energy efficiency (first law) for conversion devices (from primary energy to carriers)

• Energy efficiency (first law) for end-use devices (from carriers to useful energy)

• Energy efficiency for end-use services (from carriers to services) see Swisher

• Energy intensity (energy per GDP or per capita)• Specific energy consumption (kWh/ton of steel)• Second law energy efficiency or exergy efficiency• Embedded energy or grey energy (Energy analysis,Bousted-

Hangcock, Life cycle analysis)


Energy efficiency (first law) for conversion devices (fromprimary energy to carriers) and for end-use devices (fromcarriers to energy services)

• It is a number between 0 and 1, or between 0 and 100%.• The key word in the definition is useful (energy output). Were it

not there, the efficiency of any device would be 100%, because of the law of conservation of energy.

• The purpose of a device determines its useful energy output. For example, we want light from a lamp, but we get mostly heat; only 5% of the energy input (electricity) is converted into light, so the efficiency of a conventional incandescent light bulb is 5%.

Energy conversion deviceInput Output


Renewable energy technologiesperspectives: total primary energy supply-2004


Renewable energy technologiesperspectives: electricity production- 2004


Are RET competitive?


Identified Barriers1. There is not a level playing field for renewable energy technologies

1. Subsidies for conventional technologies = 6:1

2. Externalities are not internalised in energy/fuel prices

2. The incentives for governments and private companies to support renewable energy development are insufficient or not continuous

3. Financing is unreasonably costly for renewable energy technologies

4. Technology standards are lacking for renewable energy technologies and fuels

5. Import tariffs and technical barriers impede the trade with renewable energy technologies


Identified Barriers1. Planning & Permitting for new RE plants are difficult to obtain

1. Approval procedures are lengthy and troublesome

2. Lack of spatial planning for renewable energy.

2. Energy markets are not prepared for renewable energy

1. Integration of intermittent energy sources

2. Grid connection and access is not fairly provided

3. Other markets imperfections in energy markets

3. Renewable energy skills and awareness is insufficient

1. Lack of knowledge, awareness and acceptance

2. Lack of training and education


Renewable energy can add new value to the energy mix by …

enhancing security of supply - both for geopoliticalconcentrated in few countries in critical regions-

and infrastructure-power plants, pipeline, sea straits…

…allowing energy sources diversification & reducing

imports for consumers/ deferring production for exporters

…mitigating risks in current energy portfolio and trends, due

to volatility and instability of fossil prices;


Renewable energy can add new value to the energy mix by …

…creating framework for investment enhancing industrial

competitiveness – and opportunities for export

…creating new jobs, favouring economic development

…advancing environmental targets;

…providing unique access to energy services;

…increasing public participation in energy decision-making


Barriers to the adoption of efficiency measures

Efficiency is often a minor factor in decisions to buy appliance

Missing or partial information on energy performance on end use equipment or energy using systems

Lack of awareness regarding the potential for cost effective energy saving

Decision makers for energy-efficient investments are not always the final users who have to pay the final bill. Thus the overall cost of energy services is not revealed by the market

Financial constraints on individual consumer far more severe than

those implied by social discount rates or long term interest rate


Solutions toward more energy efficiency

Most effective way of encouraging investments in efficiency improvements is a well designed and well enforced regulations on efficiency standards, coupled with appropriate energy-pricing policies

• Energy labelling of energy-using equipments• Energy efficiency performance requirements for new equipments and

building codes• Building energy performance certification• Utility energy efficiency schemes• Fiscal and financial incentives


How likely that these new scenarios will happen?

It will require considerable political will to overcome the formidable hurdles in the implementation of policies and measures implied by “beyond alternative” scenarios:

• policy inertia,• opposition and lobbying by some stakeholders,• lack of understanding about the effectiveness of the opportunities which are open.• investments by corporations are mainly made on the short term added value of the

stock shares.

Politicians and policy makers need:• to spell out clearly the benefits for the economy and the society as a whole;• have in mind longer time frame than next election, and incorporate the principle of

generational responsibility and liability. • do expanded effort in communicating clearly to the general public the benefits of the

change to the economy and the society as a whole.


And now energy efficiency in practice….

Industrial District

Chamber of commerce

Certified ESCOFinancial and Bank System

Province

Stakeholder interested to explore energy efficiency opportunities

Promote agreement with ESCO’s to boost associated enterprises in energy efficiency

In Agreement with Chamber of commerce develop guarantee saving energy contracting after facilitiy’s energy audit

Energy refurbishment finance under specific conditions of:1) Payback time2) Technology3) Financial

conditions

Promote ESCO’s energy audit in the facilities


Phase 1

Object: Identify the most 'suitable steps for a rational use of energy, and whose savings has immediate economic impact on budgets, through a process of energy audit and technical and then economic considerations then able to direct the efforts and investments

OBJECTIVEConsider the possibility of energy savings through sending by the client of a series of predefined information, without inspections.

RESULTa concise and easy to read report containing some essential information: percentage energy savings indicative investment amount payback time of the investment


Phase two

OBJECTIVE

• In-depth analysis of needs and systems of energy production.• Choice of technologies and preliminary sizing of the system. This activity involves one or

more visits to the company and the presentation of our study.

RESULTS: The energy audit

Allows a detailed view of the proposed solutions for improving energy efficiency.

This document contains:• analysis of existing energy systems• new energy efficient concept definition• maximum size of the system• development of a plant layout• preparation of a bill of quantities summary• technical and economic evaluation of the project


Phase three

OBJECTIVEDetail design, analysis of financing options, implementation work

RESULTE.S.CO.’s activities may relate only on Executive design, allowing the customer to decide later whether to fulfill the work or of carrying a package of interventions with the mode of "third-party financing" including financing, final design and construction work.

.


Summary of the flow chart of an energy efficiency activity

• On line collection of the energy consumption data• Employment of a dedicated web-siteEvaluation of energy

consumption

• On site inspection to verify all the energy uses areas Inspection on site of energy demand and it’s utilization

• Preparation of the audit report which allow to choose the most profitable energy retrofit activities

• Bank financement of the interventionsAudit Report

• Realization of the intervetions

Elaboration of energy saving project


An example of an integrated activity for energy saving

3° STEP - Substitution•ORC cycles (heat recovery)•Biomass heat plants•PCV plants

2° STEP – Active efficiency – Energy generation•Cogeneration plants

1°STEP - Passive efficiency – energy use•Heat recovery•Compressed air pipelines•Heat pipeline network•Building insulation

50

% e

ne

rgy

savi

ng


Example…

A pasta factory has the following energy consumption

(extracted from energy bills)

Electricity: 5600 MWh

Thermal: 8500 MWh

But how are they composed? Which technology are used in the production chain?

Electric Motors (pumps, kneading machines …)

20 motors of 30 kW rated output (used in 3000 hours/year) = 1800 MWh

15 motors of 55 kW rated output (used in 2800 hours/years) = 2310 MWh

Total: 4120 MWh

Compressed air (a pipeline used for all the uses)

Total: 1200 MWh (remember that at least 80% of the electricity employed in compressed air production is wasted in heat)


Thermal energy use

Hot water production for dough (40 °C): 2000 MWh

Superheated water for drying (120 °C): 5000 MWh

Other: 1000 MWh


Approach to the solution … first

First solution: Application of a cogeneration plant for electricity and heat production.

• 5600 MWh• 840.000 € (150 €/MWh)Electricity

from the grid

• 8500 MWh• 889.121 m3 • 311.192 € (35 c€/m3)

Heat from boilers

Cogeneration facility

(700.000 € investment)

700 kWe

8000 h load

209 Sm3/h

1.672.000 m3/y

585.200 €

O&M : 61.000 €

Heat integration

(18.305 €)

5600 MWh electricity

8000 MWh heat

500 MWh from heat boilers

1.151.192 € VS 664.200 €

Payback: less than two years


Are we sure that this is the best way?

1) Efficiency improvement of the energy final uses….

2) Smart energy supplying

This is the Best way!!!


How…

Leakage ratesa (litres/min) for different supply pressures and approximately equivalent orifice sizes

Pres

kPa

Orifice diameter (mm)

0.4 0.8 1.6 3.2 6.4 9.5

483 8 33 132 527 2107 4752

552 9 36 148 588 2353 5301

621 10 41 162 654 2605 5850

689 11 44 179 714 2857 6428

862 14 55 217 868 3460 7801

Calculate the annual cost savings if these leaks were eliminated. Assume 7000 annual operating hours, an aggregate electric rate of € 0.1/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min. Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh Using values of the leakage rates from the above table and assuming sharp-edged orifices: Cost savings from 0,8 mm leaks = 100 x 41 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 18.238Cost savings from 1,6 mm leaks = 50 x 162 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 36.033Cost savings from 6,4 mm leaks = 10 x 2857 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 126.693 Total cost savings from eliminating these leaks = € 180.694





Only for compressed air …

• Calculate the annual cost savings if these leaks were eliminated. Assume 2000 annual operating hours, an aggregate electric rate of € 0.15/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min.

• Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh

Using values of the leakage rates from the above table and assuming sharp-edged orifices:

• Cost savings from 0,8 mm leaks = 20 x 41 x 6,355*10-3 kW/(l/min) x 2000 x 0,15 = € 1.563



• Total cost savings from eliminating these leaks = € 60.663• Energy saving: 404 MWh


Electric motors


How to calculate energy saving

Saving = P * load * hours * (1/ηold - 1/ηnew)Example = 20 (n°motors)* 30 kW * 3000 h (1/0.915 - 1/0.941) = 54,3 MWh = 8145 €Investment: 25.000 €Payback: 3 years


Conclusion

Are we sure that the cogeneration facility size, after this efficiency improvement,

hold steady???

And there are a lot of other actions….


Thank you!!

Romano Selva

Sogesca srl

www.sogesca.it

GReening business through the Enterprise Europe Network Renewable Energy Sources and Rational Use of...

Documents

Transcript of GReening business through the Enterprise Europe Network Renewable Energy Sources and Rational Use of...