Energy Efficiency in Industry Business Challenges & Opportunities

Transcription

1 Berlin, 10 December 2013 Energy Efficiency in Industry Business Challenges & Opportunities Restricted siemens.com/answers

2 Why do we manage energy? And how? Page 2

3 Drivers for Sustainable Energy Management in Industry Costs & Competitiveness Energy Supply - Security & Quality - Regulations & Policies Drivers for Sustainable Energy Management Sustainability & Corporate Responsibility Image & Customer Expectations Page 3

4 We don t know, if Climate Change is causing weather extremes but we can t exclude it anymore. Page 4 Sources: Metoffice (above), NOAA / NCDC (below)

5 I won't sell the future for short-term profit. Werner von Siemens Page 5

6 Drivers for Sustainable Energy Management in Industry Costs & Competitiveness Energy Supply - Security & Quality - Regulations & Policies Drivers for Sustainable Energy Management Sustainability & Corporate Responsibility Image & Customer Expectations Page 6

7 Development of World Energy Demand World Primary Energy Demand Growth of World Primary Energy Demand Source: BP Statistical Review of World Energy Source: World Energy Outlook 2011, World primary energy demand by region in the New Policies Scenario (p.80) World Energy Demand is expected to continue rising significantly, especially in the non-oecd countries. Page 7

8 Development of World Fossil Fuel Prices World Fossil Fuel Prices World Fossil Fuel Prices Source: BP Statistical Review of World Energy, inflation adjusted energy prices Assumption for analysis: Baseline scenario of 2009: macro projections of GDP and population Source: EU energy trends to 2030 UPDATE 2009, 2010, Fig. 3, p. 16 Page 8

9 Development of Global and EU Electricity Prices World Industrial Electricity Prices EU Electricity Prices in Baseline Scenario of 2009 Source: Eurostat, EIA, CEA, et al Assumption for analysis: Baseline scenario of 2009: macro projections of GDP and population Source: EU energy trends to 2030 UPDATE 2009, 2010, Fig. 16, p.30 Page 9

10 Will Fracking Solve the Energy Problem? Source: Corporate Europe Observatory Page 10

11 Will Fracking Solve the Energy Problem? Will hydraulic fracturing solve the energy resource problem? The IEA anticipates that there will not be any comparable booms of fracking outside of the USA because: There is a decline of drilling capacity from 60 % up to 90 % in the first year. Fracking technology is not able to reach profitability goals. Numerous new drillings are necessary to maintain total capacity. Oil companies release excessive information about their field sizes as well as capacities of their drillings. Several long-term risks are totally unknown. Light tight oil shakes the next ten years, but leaves the longer term unstirred (IEA Report 2013) Source: Le Monde diplomatique, April 2013, p. 1-5 Page 11

12 Drivers for Sustainable Energy Management in Industry Costs & Competitiveness Energy Supply - Security & Quality - Regulations & Policies Drivers for Sustainable Energy Management Sustainability & Corporate Responsibility Image & Customer Expectations Page 12

13 Energy Tax Exemptions in Germany Stromsteuer: Energiesteuer: 20,50 /MWh 13,90 /MWh EEG-Umlage: ca. 62,40 /MWh Energiesteuer Stromsteuer Page 13

14 EU Emissions Trading Regime EUA_Index 35 Over-allocation becomes apparent 30 Effect of Global Economic Crisis EUA surplus starts to become apparent 25 Price in EUR/t CO Phase I Source: EEX 5 Phase II Source: EEX 0 J 08 A 08 N 08 F 09 M 09 A 09 N 09 F 10 M 10 A 10 N 10 F 11 M 11 A 11 N 11 F 12 Phase II Phase III Stabilization at low price levels The market based mechanism works well as long as the market conditions are as predicted and the market behaves as modeled. Source: Shell Trading International Limited, August 2013 Page 14

15 Effects of high CO 2 -related costs Example: Swedish CO 2 taxation on district heating Source: Nordic Energy Research & IEA, Nordic Energy Technology Perspectives, 2013 Swedish carbon and energy taxation has promoted substantial fuel switching away from fossil fuels in the production of district heat. Phasing out of CO 2 tax exemptions by > 60% of standard tax for EU-ETS companies Page 15

16 EU Energy Efficiency Directive Background EU Climate and Energy Targets for % reduction in EU greenhouse gas emissions from 1990 levels 20% of EU final energy consumption produced from renewable resources 20% improvement in the EU's energy efficiency (reduce primary energy consumption) The Answer: Energy Efficiency Directive (EED, Directive 2012/27/EG) Expected Savings: 200 Mio. t CO2 ( ) Source: EU Energy Efficiency Directive (2012/27/EU)- Guidebook for Strong Implementation, 2013, Fig. 5, p.17 Page 16

17 EED Measures End-use Sectors (Articles 4-13) with a focus on industry Article 8: Large enterprises have to conduct an energy audit every 4 years and are exempted from this requirement if they are implementing an energy or environmental management system Article 9, 10: Informative metering and billing Energy Supply Side (Articles 14-15) Article 14: Cost-benefit analysis for combined heat and power (CHP) and priority grid access Article 15: Assessment of efficiency potentials of gas and electricity infrastructure Horizontal Provisions (Articles 16-21), e.g. Article 17: Information and training Article 18: Promotion of the energy services market Article 20: Member States to facilitate establishment of financing facilities (e.g. National Energy Efficiency Funds, use EU ETS auctioning revenues) Little direct effect on Industry Page 17

18 Drivers for Sustainable Energy Management in Industry Costs & Competitiveness Energy Supply - Security & Quality - Regulations & Policies Drivers for Sustainable Energy Management Sustainability & Corporate Responsibility Image & Customer Expectations Page 18

19 Today: Industry operations largely independent from power demand curve in the grid Power Grid Industrial Enterprise / Building / Warehouse Power Curve dependent on demand patterns & renewable energy supply TSO responsible for balancing supply and demand Power Demand Curve largely independent from Grid Supply Production schedules are optimized to fit staff resources and production process Processes are optimized to reduce consumption and increase flexibility Page 19

20 Tomorrow: Demand response leading to a smarter energy supply 3 Plant Demand (MW) 2,5 2 1,5 1 0,5 1 2 Actual Flexibility: lower limit Flexibility: upper limit Typical 0 6:00 10:00 14:00 18:00 22:00 3 Surplus Shortage Generation Case 1: stand-by Production Generation Case 2: increase demand Production $$$ TNSP / DSNP 1 Aggregator Curtailment Signal $$$ Payment Secure VPN Generation Case 3: reduce demand Production 1 TNSP/DNSP: Transmission / Distribution Network Service Provider Page 20

21 Energy Markets & Flexible Production Key Messages As more and more renewable energy is fed into the grid, it becomes increasingly difficult to balance the supply curve with the demand Flexible generation capacities (e.g. small gas turbine power plants) will have to be complemented by flexible demand capacities Demand response will be an important pillar for tomorrow s intelligent energy systems Demand response flexibility will be an important economical factor for tomorrow s industry & commerce Page 21

22 Drivers for Sustainable Energy Management in Industry Costs & Competitiveness Energy Supply - Security & Quality - Regulations & Policies Drivers for Sustainable Energy Management Sustainability & Corporate Responsibility Image & Customer Expectations Page 22

23 So how do we manage energy? Page 23

24 Energy Management Excellence Energy management excellence is at the intersection of energy awareness, transparency, and efficiency when all three elements are simultaneously optimised. Awareness Energy Management Excellence leading to sustainable OPEX reduction Page 24

25 ISO Enhancing Company Energy Awareness Corporate Awareness Process Management Awareness Introduction of EnMS EnMS Certification Annual re-evaluation ISO Energy Management System Create first awareness in management Review of current status of the energy management system Define next steps Introduction of an energy management system Allocation of responsibilites Description of processes Internal audit Training of Staff Internal Audit External audit Certification Management review Corrections and replaning of process Energy Energy Management Management System assessed System assessed Implementation Energy management concept system in place Certified system & processes in place Continuous improvement Page 25

26 Extract value from your energy transparency Transparency Data transparency review Development of data management concept Implementation of EDMS Continuous data analysis by experts Period Site CCL Energy Ratio??? kwh/ton Measuring points Electric energy Compressed air Gas Review measurement boundaries Assess existing metering systems (processes, auxiliary systems, energy supply and buildings) Review already available data Scope objective and coverage of energy data transparency Define Key Performance Indications and Reports Derive metering and data acquisition concept Install defined metering equipment and infrastructure Install energy data management software Configure reports and parameterize software Continuously broaden transparency Improve energy purchasing Comply with standards Optimize energy accounting Identify efficiency measures Energy Data Management System assessed Implementation concept Increased energy transparency Extracted value Page 26

27 Step-change through energy efficiency Efficiency Technical energy audit Detailed analysis and design study Implement technical optimization measures Maintain for savings endurance Assess processes, auxiliary systems, energy supply and the building Review business practices, O&M, regulatory requirements Scope technical Implementation concept Conduct a detailed costbenefit analysis Define a schedule and implementation plan Install selected energy efficiency solutions Coordinate procurement, installation, commissioning using PM@Siemens Options for performance contracts and financing Maintain savings measures to ensure savings endurance Provide measurement and verification services as required Options for additional services Estimation of savings potential Implementation concept Implementation of efficiency measure Continuous savings Page 27

28 Importance of the Political Framework Germany: Tax reliefs (electricity and energy tax) for industrial enterprises linked to the implementation of EnMS (ISO50001 or other certification) France: Certification according to ISO results in an increase of White Certificates (CEE s) for individual EE measures of 50% to 100% Sweden: Tax redemptions for companies participating in PFE upon implementation of certified EnMS (ISO 50001) plus corresponding monitoring and energy analyses. [PFE was terminated in its current form in Dec due to noncompliance with EU State Aid regulations; currently discussions with industry for a follow-up] Page 28

29 ISO Certified Sites (October 2013) Source: UBA, R. Peglau October 2013 Page 29

30 Summary Major Trends & Challenges Key Messages 1. Due to the increasing energy demand, rising energy costs can be expected in the medium and long term 2. Increasing international, EU-wide and national regulations on sustainable energy management can be expected 3. CO 2 will remain an important secondary production factor, even though the Kyoto regime has failed to develop high price signals 4. Flexibility of production will be a major requirement in the future energy system and become an important economical factor 5. Sustainable energy management will be expected and taken for granted at industry level, and international standards will be broadly introduced Page 30

31 Thank You! Head Business Development Europe Siemens AG Infrastructure & Cities Sector Sustainability & Energy Management Neuenhofstr. 194 D Aachen, Germany Phone: +49 (241) Mobile: +49 (173) Page 31