Study on the Impact of the UNIDO-GEF Industrial Energy efficiency Project on the Uptake of EE measures by Cambodian Industries

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1 Study on the Impact of the UNIDO-GEF Industrial Energy efficiency Project on the Uptake of EE measures by Cambodian Industries Dr Permod Kumar Gupta Chief Technical advisor, National Cleaner production office, Cambodia 1.0 BACKGROUND The project Reducing Green House Gas (GHG) emissions and specific energy consumption (SEC) through Improved Energy efficiency in the Industrial sector Cambodia a UNIDO-GEF funded project is executed by National Cleaner production office Cambodia (NCPO-C). The project is aimed at demonstrating economic, environmental and social benefits of EE, strengthening institutional capacity and establishing a policy that enables and supports sustainable adoption of energy efficient technologies. The project will also provide investments-specific technical assistance, including financial engineering studies and project financing, to support the development and implementation of a limited number of pilot IEE projects with high replication or energy saving potential in 5 energy intensive sectors of Cambodian industries food processing, garments, rubber processing, rice processing and brick Kilns (P.K.Gupta, 2012). Project has 5 closely interlinked outputs and this paper will focus on output-1: Implementation of Industrial energy efficiency (IEE) projects in selected pilot demo and quick scan units and its uptake by non-participating units. This paper provides an overview of the experiences of the follow-up of the Industrial Energy Efficiency (IEE) project. Section 2 provides a description of the achievements of EE implementation by partner units of IEE project. Section 3 deals adoption of energy efficiency application and practices and experience gained outside the demonstration companies. Though all the companies reported EE implementation has attended EE clinics organized by NCPO-C with provincial department of Industry Mines & Energy and sectoral and local industry associations. 2.0 RESULTS OF EE IMPLEMENTATION FROM UNITS DIRECTLY PARTICIPATED IN PROJECT For demonstrating the economic, environmental and social benefits of energy efficiency, project so far has directly assisted 36 companies as demonstration and quick scan. All 36 units are from selected 5 sectors for energy efficiency project of UNIDO-GEF. Compilations of results from direct beneficiaries are presented below in table-1.

2 Table-1: Compilation of results from direct beneficiaries S.No Description Amount Remarks 1. Total investment US$ 6,983,851 From 34 units as 2 units yet to report 2. Annual benefit US$ 6,070,300 From 34 units 3 GHG reduction T/year 35, ,370 for project period 4 GHG reduction in demo 53.4 units %age 5 GHG reduction quick scan units %age GHG reduction average >45% Compared to 30% target Source: P.K.Gupta, 2013, GSSD expo and Clean technology solution forum, Nairobi In addition to GHG reduction in ice sector there was significant reduction in Ozone depleting Substances (ODS) in ice sector by reducing and replacing HCFC based refrigerant. In all the sectors working environment improved by reducing or eliminating emissions from Diesel combustion and often marked improvement in product quality. The results achieved by Demo units were widely disseminated through workshops, seminars and more specifically by Energy efficiency clinics in association with provincial Department of industry, mines & energy. This paper briefs on the results achieved through uptake of EE by units participated in clinics and workshops 3.0 UPTAKE OF IEE PPLICATIONS: Non participating units After successful implementation of EE in selected demo and quick scan units, follow up studies were conducted with provincial department of Industry, mines & energy and sectoral industry associations. In addition to confirmation that all units implemented EE options are sustaining and also implementing additional options identified during the EE assessments. The survey also reported very good multiplier effect of successfully proven EE options by units not directly participated in the project but attended CP clinics (regional and sectoral). Though a comprehensive analysis and report on indirect implementation is not available, but the indirect implementation reported by provincial department officials and sectoral association is compiled and briefly discussed in this paper. Reported data is available only from 2 sectors Viz. Ice sector and brick making sector having least apprehension of secrecy of production and consumption (NCPO, 2013) 3.1 ICE SECTOR It was reported that in addition to participating units 11 units has installed gasifier for captive power consumption replacing diesel oil as fuel, 3 units has changed the old

3 machine with efficient ice machine and refrigerant gas from HCFC to ammonia and more than 10 units has replaced the compressors and auxiliary like condensers and accumulators to reduce energy consumption. Based on their production and energy savings it was computed that EE options implemented by non-participating ice making units has reduced GHG generation equivalent to 7500T CO2 eq/year from energy savings/fuel substitutions and 9800 T CO2 eq/year from replacing HCFC based refrigerant gas (R-22) with ammonia. 3.2 BRICK SECTOR In addition to direct participating units, 30 units has reported installation of new efficient high draft fast baking rotary Hofman kilns with average production of 10 million bricks/year and more than 45% savings in fuel resulting in 14,100 T GHG reduction per annum. 5 units has installed auto moulding machine for brick moulding resulting in >25% reduced soil consumption, 80% reduction in rejected bricks and improved product quality due to uniform baking and improved finish. For comprehensive results of indirect impact of project in other 3 sectors, provincial department of Industry mines & energy and sectoral and local industrial association will be requested to collect data from all selected sectors. NCPO is also planning to set up a team for follow up of implementation and data on uptake including challenges in uptake of EE applications. Results compiled by 1st quarter of 2014 on uptake of energy efficiency measures by non-participating units are presented in table-2. Table-2: Compilation of impact of CP Clinic on uptake of EE by industries S.No Description Nos. Percentage Remark 1. Total CP clinics Conducted In 3 years 2. Total Participants attended In 3 years 3. Participants from Industries Participants from Institutions Mostly from provincial DIME 5 No of total units attended clinic participant attended 2 time 6 No of units participated directly as demo or quick scan Of total unit attended 7 No of units implemented EE after From 2 sectors attending clinic/training reported 8 Investment by units (indirect uptake) 3.9 M US$ As per DIME 9 Direct annual benefits 3.2 As per NCPO MUS$ calculations 10 Total GHG reduction T/year 31, ,000 Tons for project life* * Implemented option life is considered to be 10 years

4 Like the demo units in indirect participating units additional benefits like significant reduction in Ozone depleting Substances (ODS) in ice sector by reducing and replacing R-22, HCFC based refrigerant. In all the sectors working environment improved by reducing or eliminating emissions from Diesel combustion and often marked improvement in product quality. In brick sector stress on workers was remarkably reduced by auto moulding and organised movement of material and product. 4.0 CONCLUSIONS The project results from demo and quick scan units and participation in Energy efficiency clinics inspired other units to implement low and medium cost EE options. Data available so far is indicates that 24% industries attended CP clinics has partly and fully implemented EE measures and if survey is restricted to two sectors from where data is available, more than 40% units were encouraged to adopt and implent techno-economically viable EE measures. However, there is need for further follow up with new strategy and with anticipated initiatives from industrial association and also with conducive policies for promoting energy efficiency and renewable energy. REFRENCES: Gupta, P.K. (2012). Reducing Green House Gas emissions through Improved Energy Efficiency in the Industrial sector Cambodia -Interim report 2012 Gupta, P.K. (2013). South-South co-operation in clean technologies promotion in Cambodia: Solutions Forum II- Clean Technologies for Green Industry, 29th October 2013, Nairobi NCPO-C (2013) Annual report of National Cleaner production office, Cambodia, Acknowledgement Global Environmental facility (GEF) funded this project implemented by Environmental Management Branch of UNIDO and executed by National Cleaner production office-cambodia with Ministry of Industry mines & Energy (MIME) and Ministry of Environment (MOE). The follow up was supported Mr Va Chanmakaravuth, Director, NCPO, Mr Nun Sophanna, Dy project co-ordinator, Mr Mek Kery Chief of industrial affairs DIH, Siem reap, Mr Peou Vanna, Chief of industrial affairs DIH, Kampong Thom, Mr Sothy Yothy, Chief of industrial affairs DIH, Kandal province. The author acknowledge the important and continued support provided by GEF, UNIDO and special thanks to Dr. Heinz Leuenberger, project manager and Director, Environmental Management Branch, UNIDO, Vienna. Author would like to thanks to host institution MIH, executing partner, MOE, provincial department of Industry Mines & energy and participating units in the project.

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