World Energy Perspective

Transcription

1 For sstainable energy. World Energy Perspective Energy Efficiency Technologies Overview Report WORLD ENERGY COUNCIL CONSEIL MONDIAL DE L ÉNERGIE

2 Officers of the World Energy Concil Pierre Gadonneix Chairman Marie-José Nadea Chair-elect Yonghoon David Kim Co-chair elect Leonhard Birnbam Vice Chair Erope Hwan-eik Cho Vice Chair 2013 Congress, Daeg Arp Roy Chodhry Vice Chair Asia Pacific/Soth Asia José da Costa Carvalho Neto Chair Programme Committee Jean-Marie Dager Chair Commnications & Otreach Committee Abbakar Sambo Vice Chair Africa Brian A. Statham Chair Stdies Committee José Antonio Vargas Lleras Vice Chair Latin America/Caribbean Graham Ward, CBE Vice Chair Finance W, Xinxiong Vice Chair Asia Taha M. Zatari Vice Chair Special Responsibility Glf States & Middle East Christoph Frei Secretary General Kevin Meyers Vice Chair North America Energy Efficiency Technologies: Overview Report World Energy Concil Copyright 2013 World Energy Concil All rights reserved. All or part of this pblication may be sed or reprodced as long as the following citation is inclded on each copy or transmission: Used by permission of the World Energy Concil, London, Pblished 2013 by: World Energy Concil Regency Hose 1 4 Warwick Street London W1B 5LT United Kingdom Registered in England and Wales No VAT Reg. No. GB Registered Office Regency Hose 1 4 Warwick Street London W1B 5LT ISBN:

3 Members of the WEC Knowledge Network on Energy Efficiency Technologies Klas Willnow (LEADER) Germany Elena Nekhaev (WEC Director) Alexandre Jeandel France Antonio López-Rodrigez Spain Arshad Mansoor United States of America Brian Statham Soth Africa David Henson United States of America David Jarrett Namibia Edardo Coelho Corrêa Brazil Greg Schmidt Canada Hendrik Jogschies Germany Jean-Edes Moncomble France Jim Kelly United States of America Magdalena Urhan Rojas Colombia Mohamed Lakhdar Habib Algeria Riccardo Lama Italy Roberto Venafro Italy Wayne Chodzicki Canada Flavio Beretta Italy

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5 World Energy Perspective Energy Efficiency Technologies Overview Report

6 Contents Smmary Global Trends Integrating Energy Efficiency Across the Entire Energy Vale Chain Energy Efficiency in Exploration and Prodction of Oil & Gas Efficiency in Processing Indstry Efficiency in Thermal Power Generation Efficiency and Power Grid Efficiency in Indstrial Use of Energy Energy Efficiency in the Transportation Sector Efficiency in Commercial and Residential Use of Energy...26 Conclsions...28 Case Stdy for the United States...29 References...31

7 5 Smmary Ongoing development of technologies is an integral part of any bsiness model, both for prodction and consmption. Technology is one of the main factors affecting competitiveness of the final prodct in the global market. Every new generation of prodcts is by defalt more energy efficient than the previos generation, as energy efficiency is an important cost factor dring the entire service life of the prodct. Energy efficient technologies can be fond in all parts of the energy conversion chain: from exploration and prodction of primary energy resorces, to power generation and oil refineries to electricity grids, to the final se in indstry, bildings and transportation. Bt it is not only the technical potential which is crcial for sccessfl introdction of energy efficient technologies. To assess the fll potential of sch technologies and identify the path towards their sccessfl market introdction, it is necessary to consider their economic, realisable and also realistic potential. This report smmarises the otcomes of a pilot project lanched by the World Energy Concil Knowledge Network on Energy Efficient Technologies in This work, focsed on technologies, complements the well-established WEC work on Energy Efficiency Policies, and more recent stdy projects addressing Energy Trilemma and Scenarios. Technical Potential Use of best available energy efficiency technologies in all areas withot taking into accont economic aspects Economical Potential Use of energy efficiency technologies only when the application is economically viable within the lifetime Realisable Potential Use of energy efficiency technologies only when the reqired payback can be shown Realistic Potential Taking into accont implementation barriers (political, financial, timing etc.) The following key messages emerging from the first phase of the pilot project describe the technical potential of Best Available Technology (BAT) today: Oil & Gas exploration: Energy efficiency of the electrical system in pstream is arond 20%, which ranks the lowest in the entire energy vale chain. By implementing an all-electric system approach, energy efficiency cold be increased p to 50%. Power Generation: World average efficiency of power plants (LHV) is 34% compared to BAT for coal-fired power plants (46%) and BAT for gas-fired power plants (61%).

8 6 Energy Efficiency Technologies: Overview Report World Energy Concil 2013 Transmission & Distribtion grids: Electricity transport losses reach p to 12% of global average; BAT for high-voltage transmission is less than 4% per 1000km. Effective energy management systems increase energy efficiency by at least 5% irrespective of size, technology or process. Bildings accont for abot 40% of the total global energy consmption. It is estimated that energy savings in bildings cold be between 20 and 40% or roghly between 1 and 2 Mtoe per year which is eqivalent to the annal energy demand of a contry like Namibia, for example. The key messages below describe the economical and realistic potential of Best Available Technology (BAT) today: A complete system analysis is reqired in many cases to leverage the fll potential for energy savings, e.g. examine how energy efficiency of bildings can be best improved sing inslation, atomation, heating and cooling controls, or a combination of a few technologies, etc. Training and information for sers are essential for reaching the fll energy savings potential. The attitde of financial instittions shold be changed to take into accont the longterm natre of energy investments. Today, investors are looking for short-term gains, while energy projects have long lead times (3 year pay-back instead of 10 year payback for energy projects). Shift from CAPEX driven perspective to fll life-cycle driven perspective is necessary to get a complete and real pictre of the project costs vs benefits US & Canada.

9 7 1. Global Trends The 21 st centry has so far been characterised by considerable changes in the way we nderstand and se energy, especially compared to the beginning of the indstrialisation which started in the contries today referred to as developed. Today, the poplation of these contries acconts for 20% of global poplation and is hardly growing any longer, while in developing contries the poplation growth rates are considerably higher. Migration of people to large rban centres is leading to the emergence of megacities. The challenges of bilding infrastrctre to match the global needs for energy, mobility, hosing and food are enormos, and none of these challenges can be met withot energy. While global energy resorces are abndant and can meet the growing demand for energy for decades to come, their distribtion arond the world and implications for energy markets call for a more efficient se of both resorces and energy systems. The crrent imbalances are amplified by a nmber of other associated isses, inclding for example an increased exploration of shale gas in North America. Climate change remains the most serios isse and it is driving the trends towards cleaner electricity and higher energy efficiency. Figre 1 Global trends towards higher electrification Demographic dynamics Abndant bt nevenly distribted resorces Climate change Poplation growth 7.5b, in 2020 Megacities (>10m people) 27 megacities by 2025 Sorce: JNO Geopolitics 70% of global oil and gas reserves are located in jst a few contries Oil price flctations Climate goals Political programes aimed at long term redction in CO 2 emissions Rising energy consmption Growing demand for energy efficiency Growing demand for clean electricity The sstainable energy system is by definition a system where the three main drivers: secrity of spply, economics and environment are in balance with each other, the so called Energy Trilemma which is comprehensively covered in the WEC report World Energy Trilemma 2011 Policies for the Ftre: Assessment of Contry Energy and Climate Policy. According to the International Energy Agency (IEA), the actal increase in global demand for electricity has been significantly higher than the projections of primary energy consmption (Fig. 2). This is a clear indication of the increasing importance of electricity for energy spply and end-se applications. For example, the annal increase of energy demand of 1.3% per

10 8 Energy Efficiency Technologies: Overview Report World Energy Concil 2013 year in the IEA s New Policies Scenario is considerably lower than the increase in electricity demand of 2.3% per year in the period ntil Moreover, the amont of electricity generated with low CO 2 emissions will rise sbstantially. Figre 2a Development of Global Energy Demand [3] 20,000 Mtoe 18,000 16,000 14,000 12,000 Crrent Policies Scenario New Policies Scenario 450 Scenario 10,000 8,000 6, Figre 2b Development of Global Electricity Demand [3] 40,000 35,000 30,000 25,000 Own se T&D losses Other TWh 20,000 15,000 10,000 5, Transport Services Residential Indstry In the energy sector, the measres to combat climate change reslt in three strategic priorities: decarbonisation of electricity spply, increase of energy savings along the entire energy vale chain, and electrification of fossil felled based applications e.g. heat pmps, e-cars where there is a significant potential for net energy savings and emissions redctions. Energy efficiency is critical to all three aspects of this strategy. According to the International Energy Agency (IEA) Energy Technology Perspectives (ETP) 2010 Ble Map Scenario, and the World Energy Otlook 2011, energy savings in the electricity

11 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 9 sector alone cold redce carbon dioxide (CO 2 ) emissions by 7.3 Gigatonnes (Gt) in 2050 relative to bsiness as sal (BAU), representing 17% of total anthropogenic emissions redction. Figre 3 Global anthropogenic CO 2 emissions by sector in 2010 Sorce: IEA, BP Statistics bnt CO2e (2010 data) Others in Energy sector, e.g. oil extraction 13 Power generation Total GHG emissions Non-CO 2 emissions Non energy related emissions Energy related CO 2 emissions When it comes to emissions by sector of hman activity, energy-related CO 2 emissions constitte the dominant part acconting for 62% of the total, and within this share, 13 GtCO 2e come from power generation alone. The remaining 18 GtCO 2e of the energy-related manmade emissions are divided between several indstrial sectors. Fig. 4 shows that based on the heat inpt, the Oil & Gas sector with its p-/mid- and down-/stream bsiness is the most energy intensive indstrial sector. Figre 4 Heat inpt of varios indstry sectors Sorce: IEA, DOE, Siemens (2008) The world s top energy intensive indstires Annal heat inpt (million metric tons oil eqivalent O&G indstry CO 2 emissions in million metric 100% carbon conversion Petrochemicals Refining Midstream Oil & Gas Iron & Steel Refining Petchems & Chemicals Cement 0 - Upstream

12 10 Energy Efficiency Technologies: Overview Report World Energy Concil 2013 The IEA has shown in their 450 Scenario that improving energy efficiency is the least costly abatement option. Efficiency acconts for half of the cmlative global abatement share relative to the New Policies Scenario, or 73 Gt, between 2011 and 2035 (Fig. 5). The role of energy efficiency varies from one contry to another, in terms of the remaining potential, energy pricing and other metrics. In OECD contries, despite significant efficiency improvements already in place, efficiency improvements in the 450 Scenario still accont for almost 42% of abatement potential relative to the New Policies Scenario. Their share rises to 54% in non-oecd contries, where efficient energy prodction and se technologies are generally not widely deployed, de to both higher costs of efficient technologies and energy sbsidies which do not encorage energy efficiency. Figre 5 Scenarios for CO 2 emissions [3] Gt Efficiency Renewables Biofels Nclear CCS Total (Gt CO 2 ) Abatement % 44% 17% 21% 2% 24% 5% 9% 3% 22% Many potential soltions for saving energy are readily available today and with already proven technologies. In power generation for example, ltra-spercritical coal combstion technologies (650 C, 265 bars) and combined cycle gas trbine power plants are excellent examples of highly efficient processes, so is power transmission with the latest ltra-high voltage AC and DC technology. Smart metering, efficient bildings, heat pmps, efficient motors, LED lighting and other applications can also contribte to higher energy efficiency. Life cycle analysis can help define the specific contribtion of each technology and analyse which technologies are cost effective, i.e. redction in total energy costs often provides positive retrns on investments. Electric vehicles may be another example of ftre mobility soltions. It can also be a part of these soltions, depending on the electricity generation mix. However, cost-effectiveness still remains a considerable economic challenge when the cost of the battery is taken into accont. However, potential ftre cost savings alone are often insfficient to promote concepts spporting improvements in energy efficiency. There are still a nmber of barriers, sch as lack of knowledge or skills to recognise and achieve potential savings; low priority relative to other costs;

13 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 11 significant pfront costs, long pay-back periods and the risk that expected savings will not materialise; energy sbsidies and crrently not yet agreed externalities sch as climate change. According to WEC, energy consmption is growing less rapidly than the economic activity in all world regions, except the Middle East. This decreasing trend for the energy intensity (energy consmption per nit of GDP) accelerated since 2004 becase of higher oil prices, technological enhancement and deployment of energy efficient technologies in appliances, blbs, motors etc. and also the introdction of new policies: from 1.9% between 2004 and 2008 compared to 1.4% p.a. between 1990 and Additional energy policies and efficiency measres are needed to realise ntapped energy savings. Their sitability varies de to differences in the ways decisions are made, sch as: natre and location of potential energy savings; perception and cltre related to benefits of energy efficiency; roles of key decision-makers: owners, tenants, operators, reglators, sers; or electricity market and tariff strctres, particlarly sbsidies and carbon costs.

14 12 2. Integrating Energy Efficiency Across the Entire Energy Vale Chain Whenever there is an energy or an environmental debate, energy efficiency never fails to be mentioned as something that can be easily implemented. For many people it looks like a low-hanging frit, bt the experience to date, both in the private and pblic sectors, does not spport this assmption. There is a considerable technical potential for energy efficiency improvements along the entire energy vale chain: from extraction of primary energy resorces: oil, gas, coal, ranim and others, to their transformation into heat and electricity, transportation and distribtion of energy, and ltimately to the final se by appliances, eqipment and devices. Few research projects or stdies have been able to estimate potentials with a reqired level of technical detail and prodce reliable estimates of energy efficiency savings and commnicate these findings in an easily nderstandable way. Examination of Prodctivity/Otpt and Cost can prodce sefl insights into the efficiency of the entire process. It helps evalate the impact of energy efficiency improvements and develop a common nderstanding of drivers behind these improvements. It helps redce fel consmption and increase the availability and the profitability of indstry. Measring the impacts of energy efficiency How can the impact of energy efficient technologies be measred and recorded? What savings can be achieved by deciding to se one technology, practice or appliance over another? To be able to answer sch qestions, it is necessary to define the reference point (baseline) to be sed for measring efficiency improvements. The baseline shold also take into consideration bsiness as sal type efficiency improvements, i.e. the improvements that are de to take place anyway withot adopting any specific efficiency measres. Figre 6 Energy Vale Chain Exploration & Prodction (O&G, mining, etc.) Processing/ Transportation (LNG, GTL, CTL) Transformation Power generation, refinery Transmission & Distribtion electricity Final Use Indstry, bildings transport

15 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 13 The energy vale chain is a seqence of prodctive activities which starts with Exploration and Prodction (E&P) of the raw material (primary energy) for the sbseqent processing, transportation, distribtion and se. The more developed the vale chain, the greater the benefits can be achieved throgh the improvements in energy efficiency. There are a nmber of different approaches the indstry has developed In the last few decades, the recognition of environmental and socio-economic isses has increased significantly and not only amongst indstry practitioners bt also a wider range of stakeholders. All assessment methodologies have their limitations. For instance, the natre of choices and assmptions made at the process otset may be sbjective. Comparing reslts of different analyses (e.g. stdies or modelling) is only possible if the assmptions and context of each analysis are the same. Generally, the information developed in an analysis shold be sed only as a part of mch more comprehensive decision process or to nderstand the broad or general trade-offs. In this context it shold be noted that indstry develops energy efficiency gidelines for each specific design. While condcting an assessment project, it is necessary to make assmptions, engineering estimates and decisions based on the vales of involved stakeholders. Each of these decisions mst be inclded and commnicated within the final reslts to explain conclsions drawn from the data clearly and comprehensively. This will make the nderstanding of the pros and cons of each alternative easier. What are the necessary steps? A sstainable energy system based on the energy efficiency approach reqires optimal integration of all components reslting in an integrated energy system. In order to setp the integrated energy system three tasks have to be completed: 1. Identify and specify yor energy reqirements. 2. Review possible options for efficiency increase along the entire energy conversion chain and select the most appropriate to match yor reqirements. 3. Optimise the system sing tools sch as Information & Commnication Technologies, e.g. Control, Real Time Optimisation and Smart Grid Technologies across sectors and infrastrctres along the energy chain and across regions. Taking into accont the many benefits provided by energy efficiency improvements, from redced CO 2 emissions to billions of dollars in potential savings from lower energy bills, it is important to condct specific assessment projects withot frther delay. To achieve faster progress in improving energy efficiency, gidelines, commnication and information shold take first priority, even more important than incentives. This is where governments can and shold take a mch more proactive approach. All energy investments and energy efficiency measres shold be based on a cost/benefit analysis that incldes environmental costs.

16 14 3. Energy Efficiency in Exploration and Prodction of Oil & Gas The oil & gas (O&G) indstry which is the most energy-intensive of all indstrial processes has a great potential for efficiency improvements. The O&G is consming abot 20% of its otpt for its own process needs. Moreover, energy efficiency of O&G Exploration & Prodction (E&P) is low by any standards, as it hardly reaches 20%. Compared to the state-of-the-art power generation technology reaching over 60% efficiency, it is obvios that there mst be a hge potential for the redction of power demand for the E&P bsiness. The reasons why the efficiency standard in E&P is so low need to be careflly analysed. Figre 7 Oil and gas indstry power demand in Upstream/Midstream/Downstream Upstream Midstream Downstream 75-85% compression & pmping > 95% compression & pmping > 90% heat transfer (heaters, chillers, steam) The most visible activity in the oil and gas vale chain is Exploration and Prodction (E&P). The E&P bsiness is considered to be the most risky link in the energy vale chain, both in economic and physical terms. At the same time, E&P generates the highest retrns. This helps companies to diversify their activities and rely on mltiple revene streams. It is obvios that sch bsiness is dominated by large vertically integrated companies which can afford long-term investment cash flow. Deep water as well as applications in remote and Arctic regions strongly advance concepts that are flly atomated and do not need operators. For instance, a concept is crrently being developed by a company for deep sb-sea prodction by applying energy-efficient smart grid system technology. These so-called sb-sea systems will be fed by electricity transmission systems from above the water or from onshore power sorces and they are capable of spplying and controlling flly atonomos exploration systems with electricity at depths of 2,000 meters and below.

17 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 15 Figre 8 Offshore and Sbsea Smart Grid for Oil & Gas applications Siemens AG 2010 E&P investments ensre the liqidity of a market for petrolem services estimated at US$160 billion annally. These services inclde geophysical activities, sch as drilling and associated services, engineering, constrction, spply and maintenance of machinery and eqipment. A systemic view promotes closer integration of the components of the energy vale chain and taking into consideration the growing importance of energy to economies creates nmeros opportnities for a nmber of related bsinesses to participate directly and indirectly in the indstry.

18 16 4. Efficiency in Processing Indstry Energy efficiency in indstry has improved significantly in the last decade, and additional improvements are still possible throgh the implementation of best available technologies (BATs) and design gidelines for existing assets. Moreover, efficiency measres offer some of the least-cost options for redction of carbon dioxide (CO 2 ) emissions; however, a wider deployment of well-known, cost-effective policy instrments is needed to achieve this potential. Technologies sch as carbon captre and storage (CCS), smelting redction, separation membranes and black liqor gasification are expected to contribte massively to meeting these challenges. Greater investment by both governments and indstry is needed for research, development, demonstration and deployment of a wide range of promising new technologies and for identification and implementation of novel processes which will reslt in the CO 2 -free prodction of materials in the longer term; for instance, indction (potential sectors: metallrgy, food indstry), heat pmps for indstry (potential sectors: food, chemistry, plp and paper, iron and steel). In the O&G Indstry, the downstream bsiness is strongly constrained by high crde oil costs, the reqired investments, increasing complexity of bsiness processes and close monitoring of prodct prices, de to the hge impact of energy prices on national economies, in particlar in developing contries. This can be attribted to the refining activity which has a long history of rigoros management of its operational costs, focsing on energy efficiency, maintenance practices, personnel management, etc. In order to evalate the energy performance of a refinery or petrochemical plant, analyse its performance trends and compare with other plants, it is important to consider performance indicators that take into accont the complexity of the systems and its operations, and allow a critical analysis of its reslts by the manager, to bridge the gaps between the reslts and the proposed goals. In general, the refinery energy management is based on the Energy Intensity Index (EII), developed by Solomon Associates, which developed standard consmption vales for each refinery process plant, considering its impact, complexity, technological advances and good practices for operational excellence. The EII is calclated dividing the real consmption by the standard consmption, which is the sm of standard consmption vales for each process calclated based on the nit spply and its specific standard consmption. Another methodology is the Energy Specific Consmption (ESC) dividing the real consmption by the sm of all refinery plants considering the complexity factor for each process. In order to allow a critical analysis of its reslts with respective reporting and verification, the EII or the ESC mst be implemented with three main priorities: a. Measrement b. Stratification c. Optimisation of the plant thermal power balance

19 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 17 The importance of the Measrement and Stratification lies in their ability to filter available sefl information and channel it to top management bt also to the operators showing them the main variables inflencing the reslts. The optimisation of the thermal power balance plays also a very important role, becase it is necessary to adjst energy prodction and demand considering economics, feed flow rates and maintenance. As a bsiness index, the EII is also impacted by the fel qality, flow rate and by the reliability of the systems, becase it considers the operational capacity as its standard consmption nit. It is necessary that the Energy Manager shall not have a limited view of the bsiness, bt shold also be concerned with the qality and priorities of maintenance and the maximm tilisation of the plants. The analysis of the index, the reslts and the implications of corrective actions shold be rotine work for the Energy Manager. Design gidelines also have to be a top priority in energy management of refineries and petrochemical plants, becase it is very difficlt to implement significant changes after the plant is in operation. Based on the topics above, the following design and operational actions are sally considered to be good engineering practices to manage energy in a process plant: Optimise heat exchanger network, mainly in distillation nits, sing e.g. pinch technology Apply Total Site Analysis, searching for opportnities of plant integration and steam level optimisation Optimise Hydrogen Prodction, finding new catalysers, researching renewable feeds, pinch analysis, process control to redce hydrogen losses, etc Analyze Colmns Internals with low pressre drop and analyses integration with the heat exchanger network In heaters and steam generators, evalate combstion air pre-heating, fle gas heat recovery and soot blowers distribtion, taking into accont NOx emissions. Consider Waste Heat Recovery and Cogeneration Evalate Variable Speed Drivers for pmps and air coolers Implement Advanced Control and Real Time Optimisation Design Hybrid and Hijet Vacm Systems Evalate Refrigerant flids and chillers for condensers, in order to redce flaring Sbstitte big condensing trbines by electrical motors Implement Trboexpanders in Flid and Hydro Catalytic Crackers and Hydrotreaters (FCCs, HCCs and HDTs) Elaborate action plan to prevent steam leaks and condensate recovery (steam traps) Redce electric losses and improve thermal inslation Optimise service and instrmentation air system

20 18 5. Efficiency in Thermal Power Generation The transformation of thermal energy contained in the resorce like hard coal, lignite, oil and gas, etc. into power has a long history. It all began with brning wood. De to higher demands for heat and mechanical power and then electricity, coal became the primary fel choice in the late 19 th and in the 20 th centry. In addition, hydro power and in the second half of the 20 th centry, nclear have been sed for power generation. With the increasing se of natral gas in combined cycle mode the power generation efficiency cold be raised significantly starting from the 1980 s. Increased operating efficiency as well as more efficient CO 2 captre and storage (CCS) in the medim term are the types of technology developments leading towards CO 2 -free electricity prodction from fossil fels. To give an example, Siemens has bilt a combined cycle power plant for E.ON AG in Irsching (Germany) with a capacity of 570 MW and an electric efficiency of 60.75%. This is the first plant in the world to exceed the 60-percent mark, and it will save over 40,000 metric tonnes of CO 2 annally compared with state-of-theart power plants of existing design with an efficiency of 58%. In coal-fired power generation, for example, efficiencies above 46% are being reached today with the aim to come close to the 50% level in the next few years. Althogh the stateof-the-art technology is at sch high levels, the average efficiency of gas and coal fired plant across the world is approximately 41% for gas and 34% for coal. Looking at the coal fired power plant fleet, it becomes obvios that there is a hge efficiency potential. The total installed capacity of steam power plants in Erope is arond 2,300 GW (2011) and 40% of them will be retired in the next two decades. That means roghly 1,000 GW of capacity needs to be replaced. In the USA, de to the availability and low costs of shale gas, old coal plants cold be sbstitted by high efficiency combined cycles. Figre 9 Net efficiencies [3] of coal-fired Steam Power Plants compared to state-of-the-art (2010) Coal -fired SPP: net efficiency (LHV) 34-12% -19% -13% -10% -6% -4% World India China USA Erope Japan State -of - the -Art

21 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 19 Carbon Captre and Storage (CCS) is the only large scale technology for mitigation of greenhose gases emissions from fossil fel power plants. Integrating CCS in fossil fel plants leads today to a 6 to 10 % efficiency penalty. De to the increasing share of volatile renewable power generation from wind and solar, certain flexibility is needed with respect to controlling loads on the grid. Conventional power plants in the ftre mst be capable of reacting even more rapidly to load changes by ramping the power plant otpt p or down. At the same time, more flexibility is needed at the load-side to react in a more elastic fashion, i.e. load follows generation. This reqires end-to-end detailed data from generation and via grid to load. How these reqirements can be flfilled together with a high level of efficiency can be demonstrated by the FACY (Fastcycling) technology developed by Siemens. This technology improves the start-p efficiency of a gas-fired combined cycle plant by 14% dring a hot start. Figre 10 Start-p capability of a Combined Cycle Power Plant (CCGT) dring hot-start Sorce: Siemens Load Conventional start-p crve Modified start-p crve Fel consmption (only for start-p process) Averaged e ficiency (Time interval conventional start) Improvement Conventional Hot start ~ 340 MWh ~ 260 MWh <40 min Hot start with FACY TM ~ 36% ~ 50% Time In addition there are frther possibilities to decrease the amont of fossil fels and increase the efficiency of the overall power prodction e.g. in Combined Heat & Power (CHP) plants, by co-firing biomass in coal power plants or sing sgar cane bagasse and straw in the ethanol processing indstry. Improving the reliability of power plant is another possible way of achieving higher overall efficiencies in power generation. It has been calclated that if all power plants in the world cold operate with the same degree of availability which is today achieved by the top 25% of plants, the world cold save at least US$80 billion per year and avoid CO 2 emissions of 1Gt and corresponding amonts of other polltants.

22 20 6. Efficiency and Power Grids Power grids play an important part in delivering electricity to the consmer. The grid ses a transmission system to transport large qantities of power at highest voltage levels, either with direct or alternating crrent (DC, AC). The distribtion system secres transport of power at medim and low voltage levels. Dring this transport there are losses of power amonting to 12% which today is the global average. Therefore it is crcial to minimise the losses throgh an optimised set p of a grid strctre combined with latest technologies. However, the massive expansion of wind and solar generating capacity with its volatile otpt is pshing the present spply infrastrctre p towards the limits of its maximm performance capability. For instance in Germany and in the USA, grid constraints make it increasingly difficlt to provide an adeqate balance between generation and load de to the high renewables share, reslting in disconnection of generators in order to maintain stability of the electricity grid. A new challenge appears as a conseqence: identify and implement the best soltion amongst the possible options: electricity storage, high voltage transmission lines, optimisation on a broader area, etc. Another conseqence is the volatility of prices on the spot markets for electricity, which increasingly often reach very low or even negative vales nder strong wind and low load demand conditions. Today s grids in some regions are at the limit of being able to handle any additional volatile inpt. The IEA, for instance, estimates the investment reqired for electricity grids by 2030 to be as high as US$ 6.5 trillion. 1 The Eropean Wind Energy Association (EWEA 2 ) estimates that the EU27 s total generation capacity will reach GW by Wind trbines will be bilt on land and, to an increasing extent, off-shore in the open sea. This means that it will be necessary to transport large amonts of electricity with minimm losses over long distances and therefore High-Voltage Direct Crrent (HVDC) transmission technology becomes an important isse for consideration. The highest-capacity electricity highway in the world has been bilt in China and more are in the planning: it will transport GWs of power from hydropower plants in the interior of the contry over distances of thosands of kilometres to the coastal cities, with only minimal losses. This is possible by tilising transmission voltages of +/- 800 kv, the first time that a voltage level of this magnitde has been deployed anywhere in the world. Even higher voltage levels p to and above 1,000 kv are feasible with HVDC technology to transport large amonts of electricity over long distances, with transmission losses of abot 3 4 percent per 1,000 kilometres. HVDC may become a part of the overall soltion: HVDC is cost-effective compared to HVAC for distances above 100 km. However there are some drawbacks related to this technology, sch as establishing a real network for example, today, HVDC is mainly a point-to-point soltion. In addition to the pgrade and expansion of the transmission grid, it will be necessary to adapt the distribtion network strctre for the new challenges. The one-way network of the 1 International Energy Agency, World Energy Otlook EWEA Report March 2008: Pre Power Wind Energy Scenarios p to 2030

23 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 21 past will now have to be eqipped for two-way load flow. This will call for increased se of information in the power network especially at the distribtion level: in other words, a Smart Grid. This will be absoltely necessary assming that the generation / load dependency will be transformed in the energy system of the ftre. The previos rle, that generation follows load, will no longer apply. Power generation will flctate to sch a large extent that this principle will be reversed into load follows generation. Figre 11 The paradigm shift in the electricity system The Smart Grid will be the next step of development in electrical generation, transmission and distribtion. Power in the old electrical grid flowed one way from generation throgh to the last load. The smart grid will allow two-way transfer of information between power provider and cstomer and even power transfer to the grid from sers capable of providing electrical generation. Advanced Metering Infrastrctre will allow greater efficiency and accracy in billing while eliminating error and significant labor costs of manal meter reading. The commnications infrastrctre can also enable new advanced fnctionality sch as, for instance, smart home appliances, electric vehicle recharging, data acqisition systems, etc. Smart Grid deployment will have direct impacts on greenhose gas emissions throgh more efficient operation of the grid and optimal integration of distribted energy resorces. Additionally, Smart Grid deployment will provide the cstomers with the right price signal and introdce incentives, which as it has been demonstrated reslt in an overall redction in consmption: the cstomer becomes the main stakeholder in the search for efficiency and contribtes to peak shaving. The Smart Grid will therefore be critically important for the development of a sstainable energy system with its increasingly complex mechanisms. Monitoring and control of the crrent flow is the core fnction of the smart grid. Withot these data, the power spply grid of the ftre will not be capable of absorbing large amonts of renewable energy and providing optimal control performance for maintaining the balance between flctating generation and load. In addition, Smart Grids will allow more rapid system restoration after otages and also the redction of non-technical losses. With the integration of Information Technology (IT) in the grid strctre for monitoring and managing the operation a Smart Grid becomes reality. The elements needed for Smart Grids are

24 22 Energy Efficiency Technologies: Overview Report World Energy Concil 2013 smart meters for small energy prodcers and consmers as well as for electric car infrastrctre and efficient information and commnication technology and sensors along the entire energy chain. This will make electricity consmption more transparent and easier to control and therefore will help to save energy. The introdction of smart control systems also makes it possible to interconnect a variety of power generation, or to decople individal spply areas from the rest of the system, so called Micro-grids. These micro-grids sing distribted generation like PV, wind, biomass or micro-chp cold be developed towards independent systems where the connection to the grid is only sed for back p reasons.

25 23 7. Efficiency in Indstrial Use of Energy Indstry ses a large amont of energy to power a diverse range of manfactring and resorce extraction processes. Many indstrial processes reqire large amonts of heat and mechanical power, most of which is delivered by natral gas, petrolem fels and as electricity. In addition some indstries generate waste streams that can be recovered to provide additional energy. Becase indstrial processes are so diverse from the cold or low temperatre reqired process to the high temperatre reqired process, it is impossible to describe the mltitde of opportnities for energy efficiency improvements in indstry. There are a nmber of processes and energy services that are widely sed in many indstries. Many depend on the specific technologies and processes in se at each indstrial facility. However effective energy management in indstry, irrespective of size, technology or process, will increase energy efficiency by at least 5%. To implement co-generation, decrease process heat level and amont or recover the waste heat from process or tilities provides important Energy Efficiency opportnities in many contries. Varios indstries co-generate steam and electricity for sbseqent se within their own facilities. When electricity is generated, the heat that is prodced as a by-prodct can be captred and sed for process steam, heating or other indstrial prposes. Co-generation converts p to 90% of fel into sable energy. Advanced boilers and frnaces can operate at higher temperatres while brning less fel. These technologies are more efficient and prodce fewer polltants. Over 45% of the fel sed by US manfactrers is brnt to prodce steam. The typical indstrial facility can redce its energy sage by 20% (according to the US Department of Energy) by inslating steam and condensate retrn lines, stopping steam leakage, and maintaining steam traps. Figre12 Global electricity demand [4] Lighting (19%) Hosehold Appliances Electronics Resistance Heating: SH & DHW Vehicle: Trains Electro Chemical Miscellaneos Motors (40%)

26 24 Energy Efficiency Technologies: Overview Report World Energy Concil 2013 Electric motors are by far the most important type of electric load in indstry sing abot 70% of the consmed electricity. In the tertiary sector, electric motor systems se abot one third of the consmed electricity. Electric motors sally rn at a constant speed, bt a variable speed drive allows the motor s energy otpt to match the reqired load. This achieves energy savings ranging from 3 to 60%, depending on how the motor is sed. Motor coils made of spercondcting materials can also redce energy losses. Moreover, motors can also benefit from voltage optimisation. Indstry ses a large nmber of pmps and compressors of all shapes and sizes and for a wide variety of applications. The efficiency of pmps and compressors depends on many factors bt often improvements can be made by implementing better process control and better maintenance practices. Compressors are commonly sed to provide compressed air which is sed for sand blasting, painting, and other power tools. According to the US Department of Energy, optimising compressed air systems by installing variable speed drives, along with preventive maintenance to detect and fix air leaks, can improve energy efficiency by 20 to 50%.

27 25 8. Energy Efficiency in the Transportation Sector The estimated energy efficiency for an atomobile is 280 Passenger-Mile/106 Bt. There are several ways to enhance a vehicle s energy efficiency. Using improved aerodynamics to minimise drag can increase vehicle fel efficiency. Redcing vehicle weight can also improve fel economy, which is why composite materials are widely sed in car bodies. More advanced tyres, with decreased tyre to road friction and rolling resistance, can save gasoline. Fel economy can be improved by p to 3.3% by keeping tyres inflated to the correct pressre. Replacing a clogged air filter can improve a car s fel consmption by as mch as 10% on older vehicles. On newer vehicles (1980s and later) with fel-injected, compter-controlled engines, a clogged air filter has no effect on mpg bt replacing it may improve acceleration by 6 11%. Energy-efficient vehicles may reach twice the fel efficiency of the average atomobile. Ctting-edge designs, sch as the diesel Mercedes-Benz Bionic concept vehicle have achieved a fel efficiency as high as 84 miles per US gallon (2.8 L/100 km; 101 mpg-imp), for times the crrent conventional atomotive average. The mainstream trend in atomotive efficiency is the rise of electric vehicles (all electric or hybrid electric). Hybrids, like the Toyota Pris, se regenerative breaking to recaptre energy that wold dissipate in normal cars; the effect is especially prononced in city driving. Plg-in hybrids also have increased battery capacity, which makes it possible to drive for limited distances withot brning any gasoline; in this case, energy efficiency is dictated by whatever process (sch as coal-brning, hydroelectric, or renewable sorce) generates the power. Plg-ins can typically drive for arond 40 miles (64 km) prely on electricity withot recharging; if the battery rns low, a gas engine kicks in allowing for extended range. Finally, all-electric cars are also growing in poplarity.

28 26 9. Efficiency in Commercial and Residential Use of Energy A bilding s location and srrondings play a key role in reglating its temperatre and illmination. For example, trees, landscaping, and hills can provide shade and block wind. In cooler climates, designing bildings with soth-facing windows increases the amont of sn (ltimately heat energy) entering the bilding, minimising energy se, by maximising passive solar heating. Tight bilding design, inclding energy-efficient windows, well-sealed doors, and additional thermal inslation of walls, basement slabs, and fondations can redce heat loss by 25 to 50%. Dark roofs may become p to 39 C (70 F ) hotter than the most reflective white srfaces, and cold transmit some of this additional heat inside the bilding. US Stdies have shown that lightly colored roofs se 40% less energy for cooling than bildings with darker roofs. White roof systems save more energy in snnier climates. Advanced electronic heating and cooling systems can moderate energy consmption and improve the comfort of people in the bilding. Proper placement of windows and skylights as well as the se of architectral featres that reflect light into a bilding can redce the need for artificial lighting. Increased se of natral and task lighting has been shown by one stdy to increase prodctivity in schools and offices. Compact florescent lights se two-thirds less energy and may last 6 to 10 times longer than incandescent light blbs. Newer florescent lights prodce a natral light, and in most applications they are cost effective, despite their higher initial cost, with payback periods as low as a few months. Effective energy-efficient bilding design can inclde the se of low cost Passive Infra Reds (PIRs) to switch-off lighting when areas are noccpied sch as toilets, corridors or even office areas ot-of-hors. In addition, lx levels can be monitored sing daylight sensors linked to the bilding s lighting scheme to switch on/off or dim the lighting to pre-defined levels to take into accont the natral light and ths redce consmption. Bilding Management Systems (BMS) link all of this together in one centralised compter to control the whole bilding s lighting and power reqirements. The choice of space heating or cooling technology in bildings can have a significant impact on energy se and efficiency. There are also district heating and cooling systems which can se city wastes. For example, replacing an older 50% efficient natral gas frnace with a new 95% efficient one will dramatically redce energy se, carbon emissions, and winter gas bills. Grond sorce heat pmps can be even more energy efficient and cost effective. These systems se pmps and compressors to move refrigerant flid arond a thermodynamic cycle in order to pmp heat against its natral flow from hot to cold, for the prpose of transferring heat into a bilding from the large thermal reservoir contained within the nearby grond. The end reslt is that heat pmps typically se for times less electrical energy to deliver an eqivalent amont of heat than a direct electrical heater does. Another

29 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 27 advantage of a grond sorce heat pmp is that it can be reversed in smmertime and operate to cool the air by transferring heat from the bilding to the grond. The disadvantage of grond sorce heat pmps is their high initial capital cost, bt this is typically recoped within five to ten years as a reslt of lower energy se. Smart meters are slowly being adopted by the commercial sector to focs staff on energy isses and for internal monitoring prposes the bilding s energy sage in a dynamic presentable format. The se of Power Qality Analysers can be introdced into an existing bilding to assess sage, harmonic distortion, peaks, swells and interrptions amongst others to ltimately make the bilding more energy-efficient. Often sch meters commnicate by sing wireless sensor networks.

30 28 Conclsions Energy efficiency sometimes is considered to be an easy soltion for achieving immediate energy savings. Efficient technical soltions are available already today for most applications and ses. Technological developments are offering and will offer in the ftre a range of technical soltions for improving energy efficiency, bt there are barriers: organisational, financial and behavioral which need to be addressed in a holistic way. The ambitios goals for energy efficiency are reaching beyond prely technical soltions and go mch frther in terms of cost-effectiveness, financing, acceptance, innovation and environmental impact assessment. Cost-effectiveness of technical soltions: profitability of investing in energy efficiency technologies are often nknown or qestioned. Governmental agencies shold promote nbiased comprehensive stdies of profitability, inclding cost/benefit assessments. Financing Energy efficiency reqires a long-term commitment, and the financing framework shold take this into accont. The loan terms shold be covering the entire lifetime of the soltion. Acceptance Energy savings do not always trn ot as expected (rebond effect). Acceptance and willingness to adapt to new consmption patterns are essential for sccessfl implementation of policies and measres. Innovation Technology roadmaps can be sefl tools for design of possible ftres and help decision-makers to agree on short-term soltions. Environmental impact assessment shold be based on a fll life-cycle analysis, and also be realistic and achievable.

31 World Energy Concil 2013 Energy Efficiency Technologies: Overview Report 29 Case Stdy for the United States: The Electric Power Research Institte (EPRI) has condcted field assessments of emerging energy-efficient technologies within the Energy Efficiency Demonstration project (see the EPRI final report ). EPRI identified six categories of energy-efficient technologies with the potential to significantly redce energy sage in US bildings and homes. These technologies were commercially available, bt each had limited penetration in the US market. The Demonstration was lanched to gain experience with these technologies and to gather data on their energy savings and performance in the field. The Demonstration also focsed on validating applicability in North America. The objectives were to Examine the efficiency and performance of the technologies. Assess energy savings for different climatic regions and different bilding designs and constrctions. Identify and qantify different qalities of prodcts within the technology category and effects when compared with traditional technology. Understand technical obstacles sch as the possible impact that the technologies may have on the performance of the electric grid. Heat Pmp Water Heaters (HPWHs) for Residential Applications Compared with the energy consmption that was calclated for baseline electric-resistance water heaters, the heat pmp water heaters in this stdy sed on average 50% less energy. The HPWHs were observed to provide minimal redction to tility peak-day, on-peak demands. The average daily load shapes for the mixed-hmid climate showed significant redctions in power dring the morning and evening peaks, with redctions at the peak hor ranging from 47 to 56%, even in winter. Analysis of the small sample of cold-climate water heaters showed that in winter, those nits provided only minimal redction in peak power (10 to 25%) on average, althogh fll-day energy consmption was 33 to 34% lower. Variable Refrigerant Flow (VRF) Variable refrigerant flow (VRF) is a family of air-conditioning and heat-pmp prodcts that expand the capabilities of traditional heating and air-conditioning systems with the incorporation of variable capacity and distribted control. VRF may emerge as a leading technology for managing both short-term load variations and long-term load growth. VRF operates on the same thermodynamic cycle as other heat pmps and air conditioners and is limited by the same overall efficiency constraints of ambient temperatres. Manfactrers claim for energy efficiency indicate savings over traditional HVAC eqipment of 10 to 40% (depending on the bilding type, climate, and installation details). Dctless Heat Pmps (DHPs) Heating and Cooling of Residential Bildings In the United States, space cooling acconts for abot 18% of a residential electricity bill. Most people in the United States rely on central systems that featre a network of hidden air dcts that can become leaky and therefore inefficient. Dctless mini- and mlti-split

32 30 Energy Efficiency Technologies: Overview Report World Energy Concil 2013 systems distribte cooled or heated refrigerant to one or more indoor wall- or ceilingmonted fan-coil nits, which transfer heat between the refrigerant and the room air. DHPs may ths redce the energy consmption by p to 40% by eliminating air resistance and leakage, redcing fan power, eliminating nintended heat exchange between air dcts and the srronding nconditioned air, and enabling zone-by-zone temperatre control to avoid conditioning noccpied spaces. Light-Emitting Diodes (LEDs) Street and Area Lighting High-intensity discharge (HID) lighting prevails in illminating streets. Bt high-power LEDs promise a brighter ftre with energy savings between 20 and 70%. The variation is largely de to differences in design constraints sch as pole spacing, se of secrity cameras, and adeqacy of existing designs. Althogh the cost of installing LED lighting is greater than the installation cost for conventional lighting (p to ten times higher in some cases), maintenance costs of conventional lighting far exceed the initial costs of their installation. LEDs also last longer than HID lighting a lifespan as mch as to 100,000 hors according to some manfactrers which also redces the maintenance costs. Energy Efficiency in Data Centres: Efficient Power Spplies, Airflow Management, DC Power. Energy sage at data centres dobled between 2000 and 2006, and it is poised to doble again, costing data centres billions of dollars to power and cool information technology (IT) eqipment. To redce the energy consmption of data centres, varios energy-saving concepts are being considered, from innovative technologies to best practices that have been verified to ct energy consmption. Replacing the standard AC power system with DC systems, data centres can reap the benefit of eliminating mltiple AC-to-DC and DC-to-AC power conversions, reslting in a potential energy savings of 15%. Residential Appliances Demonstration: Washers, Dryers and Refrigerators EPRI targeted several important white goods refrigerators, clothes washers, and electric clothes dryers for an energy-efficiency demonstration. Together, these appliances se abot 15% of the residential electricity consmed in the US. Althogh the potential energy performance of washer/dryers is ambigos, the potential for refrigerators is clear. Today s average size nit ses less than a third of the electricity reqired by its conterpart of the 1970s 1800 kwh/yr in the 1970s compared to less than 500 kwh/yr for today s high-efficiency model.

33 1. Ener gyeffici encypot ent i al sandbar r i er sf orreal i zat i oni nt hei nds t r ysect or, Techni calr epor tpr epar edbydr.kl aswi l l now,si emens 2. Ener gyeffici encysol t i onsf orexi s t i ngcommni t i es, Techni calr epor tpr epar edby Al exanderj eandel,gdfsez 3. Ener gyeffici encysol t i onsf orther malpowerpl ant s, Techni calr epor tpr epar ed bydr.kl aswi l l now,si emens