Enhancing Industrial Energy Efficiency and Energy Management Systems

Transcription

1 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 1

2 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 2

3 Industry Energy and Carbon Footprints 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 Greenhouse Gas Emissions by Economic Sectors Source: IPPC Working Group III Mitigation of CC,

4 Industrial Energy Efficiency and Climate Change Cumulative CO 2 reductions by sector and technology in the 2DS to 2050 Source: IEA,

5 Energy Consumption and Efficiency in Industry PEOPLE TECHNOLOGY Operations Behaviour Leadership Competence Reaction Analysis Production Weather Best Available Technology EE Investment Product Mix ENERGY CONSUMPTION DATA DRIVING FACTORS Source: W. McLaughlin for UNIDO 5

6 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 6

7 BARRIERS to Energy Efficiency in Industry 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 7

8 Where are opportunities for EE improvement? Energy Savings potential from EE (%) Benchmarking study in Foundry Sector Sector or Product Developed countries Developing countries Petroleum refineries Steam cracking Ammonia Alumina production Iron and Steel Cement Glass Pulp and Paper Food and beverage Other sectors Source: UNIDO, 2011 Product Costs Resource Savings Average efficiency - 57% Better management & low cost initiatives - 43% Capital investment Source: Adapted from IFC, 2010 Best performance 8 8

9 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 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. 9

10 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 10

11 Energy Management System in line with ISO Purpose of EnMS-ISO to enable an organization to follow a systematic approach in achieving continual improvement of energy performance,.. Scope of EnMS-ISO facilities equipment personnel systems processes procurement measurement design doc. & report ISO targeted to Industry Power sector Commercial & buildings Transport Others It is applicable to organizations of all sizes ISO does NOT prescribe specific performance criteria or targets with respect to energy. 11

12 ISO EnMS Structure Continual improvement Energy policy Management participation Management Responsibility Yes Management review Energy planning Management Review Policy Implementation and operation Planning Checking Internal audit of the EnMS Nonconformities, correction, corrective and preventive action Monitoring, measurement and analysis Day to day operations Checking Implementation & Operation Source: ISO 50001:2011 Source: UNIDO EnMS Programme 12

13 ISO EnMS Simplified Commit to change Check the results kwh ($ + CO 2 ) Plan the changes Source: W. McLaughlin for UNIDO Make the changes 13 13

14 EnMS Managing and improving all 3 pillars kwh ($ + CO 2 ) Source: W. McLaughlin for UNIDO 14

15 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 EE INTEGRATED SUSTAINED ENERGY SAVINGS & INVESTMENTS! 15

16 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 16

17 EnMS Quantitative Achievements Energy savings Energy cost savings Non-energy benefits (water savings, material savings, maintenance costs reduction, etc.) GHG and other pollutants emission reductions Resources for EE Reduced response time to dev.. 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 17

18 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 18

19 Example 1 : Iron and Steel South Africa Arcelormittal Saldanha Works Electricity demand : 160 MW Manpower: 548 permanent employees Sales output: 1,2 million ton HRC/annum Adjustments/optimization of production operations, energy systems optimization, fuels switching, etc... driven by EnMS! 2012 Energy Savings (Norm.) > 100 GWh COREX Steel shop RHF DR-Plant Mills Energy Efficiency Achievements 2011 Energy Management System Implemented No. of Projects/Measures 11 Total Capital Investment (USD) Gross Financial Savings (USD) 9,076,000 Overall Payback Period (in years) Energy Savings Norm. (GWh) GHG Reductions (tons CO 2 ) 77,000 19

20 LACTIS J.S.C Open joint stock company (about 10% on Moldovan market) 185 employees Example 2 : Dairy Moldova Management started to look into EE in 2009 to reduce production costs and impact of increased energy prices Value of EnMS/EE investments planned in 2012 for was 410,000 USD 80% implemented LACTIS improvements 2012 Energy Management System Implemented No. of Measures/Projects 11 Total Capital Investment (USD) 6,900 Gross Monetary Savings (USD) 22,000 Overall Payback Period (in years) Energy Savings Norm. (MWh) GHG Reductions (tons CO 2 )

21 Example 3 : Power Generation Macedonia REK BITOLA 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 GWh 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 2.97% of total consumption Payback time: days REK BITOLA improvements in 2016 Energy Management System Implemented No. of Measures/Projects 4 Total Capital Investment (EUR) 0 Gross Monetary Savings (EUR) 322,000 Overall Payback Period (in years) Energy Savings Norm. (MWh) 8, GHG Reductions (tons CO 2 ) 10,528 21

22 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 22

23 Supply and value chain for EnMS-ISO Structure and Stakeholders EnMS implementation and energy performance improvement Policies & Regulations Policy Makers Policy Implemen. Enterprises EnMS Consultants EnPerform. Verifiers Third-party certification to ISO ISO Lead Audit. Certification Bodies Accreditatio Bodies Financiers & Investors 23 23

24 Supply and value chain for EnMS-ISO Structure and Stakeholders EnMS implementation and energy performance improvement 3 rd -party certification to ISO Policies & Regulations Policy Makers Policy Implemen. Enterprises EnMS Consultants EnPerform. Verifiers Lead Audit Cert. Body Accr. Body Financiers & Investors Ministries Energy Agencies Power utilities & energy suppliers Others Industry Transport Power & Water Utilities Buildings Logistics Cities Others Energy Eff. consultant ESCOs Manage. system consultant Power utilities & energy suppliers Others Energy Eff. consultant Energy Agencies IPMVP certified experts ESCOs Others 24 24

25 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 25

26 Success Factors for EnMS-ISO Deployment Policies & Institutions EnMS Skills, Implement. & Services 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 Conformity Assessment Credible demonstration to organizations and the market of EnMS/ISO50001 tangible benefits 26

27 Policies that can support EnMS-ISO 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 27

28 Examples of Policies Frameworks for EnMS-ISO 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 28

29 Policies Frameworks for EnMS-ISO EU Energy Efficiency Directive Article 7 & Article

30 Examples of Policies Frameworks for EnMS-ISO FYR of Macedonia 30

31 Combining Skills Development and Results The UNIDO EnMS Capacity Building and Implementation Programme time 1-2 months 3 days months 4 days 4-6 months 3 days 4-6 months 3 days 2-3 months ½ day Preparation COMMIT Training PE team work to implement EnMS PLANNING Training PE team work to implement EnMS IMPLEM. Training PE team work to implement EnMS CHECKING Training PE team work to implement EnMS EXAM Legend Results: Draft Energy Policy Draft Roles & Responsibility matrix Initial data collection 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 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. Ongoing and periodic communication through webinars, s and phone calls between international trainers and PE teams to review progress, discuss issues and provide guidance. Plant visits by national EE consultants trainees 31

32 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: 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! 32

33 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 33

34 Content 1. Context 2. Barriers to and Opportunities for EE in Industry 3. Energy Management Systems (EnMS) and ISO What EnMS-ISO can achieve 5. Supply and value chain for EnMS-ISO Programmes to promote and support EnMS-ISO Final considerations 34

35 Designing Programmes to support EnMS-ISO 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 35

36 THANK YOU! For more information: Mr. Marco MATTEINI Industrial Development Officer Industrial Energy Efficiency Division Department of Energy UNIDO 36

37 ADDITIONAL INFORMATION For more information: Mr. Marco MATTEINI Industrial Development Officer Industrial Energy Efficiency Division Department of Energy UNIDO 37

38 UNIDO s EnMS-ISO journey UNIDO EGM on EnMS in Industry Mar May ANSI-ABNT NWI Proposal to ISO TMB EGM = Expert Group Meeting 38

39 Launch of UNIDO Project on promotion of international EnMS standards Mar Jul UNIDO EGM on EnMS in Industry UNIDO-DPI EGM on EnMS in Thailand Sep UNIDO s EnMS-ISO journey UNIDO-SAC EGM on EnMS Standards in Beijing UNIDO-ABNT EGM Apr on EnMS Standards in Sãu Paulo Aug DEVELOPMENT & IMPLEMENTATION OF UNIDO EnMS PORTFOLIO Ongoing promotion with counterparts of EnMS and engagement in ISO development EnMS projects started/to start in 11 countries Jun May ANSI-ABNT NWI Proposal to ISO TMB Feb ISO TMB establishes ISO PC 242 Sep ISO PC st Meeting Washington Oct ISO PC st CD ISO Jun Release of ISO 50001:2011 EGM = Expert Group Meeting Incorporating many of UNIDO Framework for Action findings developed in < 3 years! 39

40 UNIDO s EnMS-ISO journey DEVELOPMENT & IMPLEMENTATION OF UNIDO EnMS PORTFOLIO EnMS programs started/to start in 11 countries UNIDO EnMS Internal EGM in Vienna UNIDO Intern. EGM Sustainable Energy Standards in Vienna EnMS programs in 12 countries EnMS programs in 17 countries UNIDO Intern. EGM on EnMS in Vienna UNIDO Operating Agent of EMWG Jun Apr Apr Jun Oct May May Jun Release of ISO 50001:2011 developed in < 3 years! Jun Development of ISO 50002, ISO 50003, ISO 50004, ISO and ISO st Meeting of ISO TC 301 Development HLS ISO UNIDO continued participation to experts discussion and standards development 40

41 UNIDO Global EnMS-ESO Programme June 2017 Operational in 18 countries Planned activities in 10+ countries Projects ongoing South Africa Moldova Russia Turkey Ecuador Malaysia Thailand Viet Nam Philippines Indonesia Egypt Iran Ukraine Colombia Macedonia Myanmar India Georgia Planned activities Other donors Swiss State Secretariat for Economic Affairs UK Department for International Development Government of South Africa Government of Italy Government of Austria 41

42 UNIDO-GEF Global EnMS-ISO Programme Operational in 18 countries (as of Sep 2017) 12 Countries at the end of 2012 Decision-makers reached Enterprises trained in EnMS Consultants trained in EnMS Enterprises with EnMS ,000 + Cumulative direct final energy savings (GWh) , ,

43 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 43

44 The importance of a Programmatic Policy Approach 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 44

45 Examples of Policies Frameworks for EnMS-ISO 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 ). Energy Intensity as indicator. Assessment being conducted. Special equalization scheme Financial Electricityintensive 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 or EMAS) Companies with < 5 GWh can operate DIN EN 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 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

46 Examples of Policies Frameworks for EnMS-ISO 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 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 Denmark EEOS is the only one with top savings in Industry 46

47 CBA - FYR of Macedonia Projected Replication 10 Partner enterprises 12 UNIDO National EnMS Expert UNIDO EnMS CBI Programme 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! 47