ENERGY EFFICIENCY POTENTIAL IN INDUSTRY AND IMPACT OF NEW TECHNOLOGIES ON SUSTAINABLE EFFICIENCY IN INDUSTRIAL PRODUCTION

Transcription

1 ENERGY EFFICIENCY POTENTIAL IN INDUSTRY AND IMPACT OF NEW TECHNOLOGIES ON SUSTAINABLE EFFICIENCY IN INDUSTRIAL PRODUCTION

2 ENERJİ YÖNETİMİ DERNEĞİ (EYODER) EnergyManagementAssociation Established in May 2010 Objectives: - To improve the development of the Energy Efficiency sector(ee sector) in Turkey - To create synergy by bringing energy managers (EM) and energy service companies (EVD-ESCO) together under the roof of a non-governmental organisation.

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4 ENERJİ YÖNETİMİ DERNEĞİ (EYODER) In 2013, total energy production was GWh, 52727GWh of which were from renewable sources and GWh from fossil fuels 3% 33% 1% 37% 21% 5% Coal Wind Hydro Geothermal Natural Gas Other

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13 Source : GDRE TURKEY S ENERGY OUTLOOK

14 TURKEY S ENERGY OUTLOOK

15 TURKEY ENERGY CONSUMPTION Source : GDRE

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17 TURKEY S ENERGY OUTLOOK Turkey s main energy sources are natural gas and petrol; the country s import dependency on these sources are98% and 92% respectively. In 2013, Turkey spent almost USD 56billion on energy imports(total importsapp. 252 billion). Due to increasing demand, this figure is expected to rise to USD 106 billion by 2023.

18 OPTIONS-SOLUTION How can energy demand in the Turkey be met? 1-SUPPLY-sideapproach * Increasing supply = More energy generation; environmental impact * Import sources = Current account deficit (petrol, natural gas, turbines, PV panels, etc.), supply security risk * What can be done: Better (lower) prices for imports, diversification of suppliers 2-DEMAND-side approach * Decreasing demand = Energy efficiency * Local sources = Production, employment, economic activities, R&D * What can be done= State support (short-term leverage effect) 3- SOLUTION * The priority must be a REDUCTION IN ENERGY DEMAND (higher EE) * Renewable energy is no alternative to energy efficiency (EE).

19 ENERGY SAVING POTENTIAL According to the GDRE (General Directorate of Renewble Energy) document Energy Efficiency Status and Future Planning of November 2009 The minimum energy saving potentials for selected sectors are as follows: Industrial : %15, Building :%35 Transport : %15 If these savings can be realised: Demand forecast for 2020 would decrease by 20% (45 m TOE) The saved amount corresponds to 2.5 times the annual energy consumption of the 30 m buildings in the country.

20 ENERGY SAVING POTENTIAL According to a study carried out by World Bank, 27% energy saving potential is pointed out. Saving Potential Saving Potential (%) (000 TOE/year) Electricty Fuel Industry 25% 8,015 Iron-Steel ,402 Cement ,124 Glass Paper Textile ,097 Food Chemical ,283 Others No No 729 Building 30% 7,16 Residence ,655 Public and Commercial ,505 Total 27% 15,152

21 TURKEY ENERGY CONSUMPTİON

22 TURKEY ENERGY CONSUMPTİON Industry s share in total final energy consumption is 39%, which make it the biggest energy consumer in Turkey. Buildings consumption about 30% of total final energy. These two sectors also has the highest increase in energy demand. Industry s annual savings potential is USD 3 billion. This potential corresponds to 8 m TEP per annum or to 25% of industry s energy consumption in The share of energy costs in energy-intensive industrial sectors amounts to 20-50% of total production costs.

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27 METHODOLOGY ENERJİ YÖNETİMİ DERNEĞİ (EYODER) Three different types of potentials have been regarded: The energy saving potential, in others words the potential regarding electricity, fuels and heat amounts The energy cost saving potential, meaning costs for electricity, fuels and heat The market potential, meaning the needed investment sum to achieve a certain energy efficiency potential. Moreover potentials for diverse framework conditions have been calculated: The technical potential comprises the use of the best available energy efficiency technologies in all applications without taking in consideration economical constraints. The economical potential contains the use of energy efficiency technologies in applications when the use of the technology is economical taking into account the life cycle of the technology (meaning the internal rate of return (IRR) is bigger than 8 %) the realizable potential takes into consideration that energy efficiency technologies mostly are only used when a certain payback time is fulfilled (here: 3 years) No estimations have been done within this study for the realistic potential, meaning the potential taking also in consideration further barriers like political, financial, barriers as to timing etc.

28 ENERJİ YÖNETİMİ DERNEĞİ (EYODER) Much of this potential can be captured through policies for promoting use and optimisation of energy-efficient industrial equipment and systems, and improving overall efficiency through energy management. Toachieveenergysavingsin theindustrialsector, theiea recommends that governments: ** Support industry adoption of energy management protocols. ** Mandate MEPS(Minimum Energy Potential Standards) for electric motors. ** Implement a package of measures to promote energy efficiency in small and medium-sized enterprises(smes). ** Put in place complementary financial policies that promote energy-efficient investment.

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36 ENERJİ YÖNETİMİ DERNEĞİ (EYODER) Energy Efficiency Measures in Industry MandatoryEnergyManagersappointmentsin industrial entitieswhichconsumeenergyannualymorethan1000 toe and industrial zones EnergyManagement(EM) & EnergyAuditTrainings and certifications Financial supportforee Projectsin Industry EstablishmentsVoluntaryAgreementstodecrease energyintensity. SupportforSME stodefine andimplementee measures Supportinguseof renewableandefficientcogeneration.

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38 ENERGY EFFICIENCY ACT OBJECTIVE Tobeachievedthroughefficientuseofenergyresourcesandenergy. Efficient useof energy Prevention of wasteful energy use Protection of the environment Reduction of the burden of energy costs on the economy

39 ENERGY EFFICIENCY ACT TARGET GENERATION TRANSMISSİON DISTRIBUTION CONSUMPTION EFFIENCY INDUSTRY BUILDINGS HOUSEHOLD APPLIANCES TRANSPORTATI ON POWER GENERATING PLANTS TRANSMISSION AND DISTRIBUTION NETWORKS

40 ENERGY EFFICIENCY STRATEGY PAPER ( ) It is proposed with this document to determine a political set supported with result focused and concrete targets and to define necessary targets together with the enterprises responsible for making these activities; to act in the framework of a collaboration and participatory approach of public and private sector and NGOs. It is targeted with this document to decrease at least 20% of amount of energy consumed per GDP of Turkey in the year 2023 (energy intensity).

41 STRATEGICAL PURPOSES ENERGY EFFICIENCY STRATEGY PAPER ( ) SP-01: To reduce energy intensity and energy losses in industry and services sectors SP-02:To decrease energy demand and carbon emissions of the buildings; to promote sustainable environment friendly buildings using renewable energy sources SP-03: To provide market transformation of energy efficient products SP-04: To increase efficiency in production, transmission and distribution of electricity, to decrease energy losses and harmful environment emissions

42 STRATEGICAL PURPOSES (continiued) ENERGY EFFICIENCY STRATEGY PAPER ( ) SP-05: To reduce unit fossil fuel consumption of motorized vehicles, to increase share of public transportation in highway, sea road and railroad and to prevent unnecessary fuel consumption in urban transportation SP-06: To use energy effectively and efficiently in public sector SP-07:To strengthen institutional capacities and collaborations, to increase use of state of the art technology and awareness activities, to develop financial mechanisms

43 ENERGY EFFICIENCY STRATEGY PAPER ( ) STRATEGICAL PURPOSES, TARGETS AND ACTIVITIES SP-01/ST-01 : The reduced energy intensities in each industry sub sector shall be decreased in the rates determined with the sector collaborations without being at least 10% for each sub sector within the 10 years after the publication of the Document. SP-01/ST-01/A-01 : To define applicable measures in energy efficiency with the savings potential in industry sub sectors. SP-01/ST-01/A-02 :To require the business enterprises, obliged to establish an energy management unit or nominate energy manager in the industry and services sectors, and the industrial zones to have ISO Energy Management Systems Standard paper in the relations of them with the public enterprises.

44 10 th Five Year Development Plan ( ) Tenth Development Plan were formed under four main headings; "Qualified People- Strong Communities", "Innovative Manufacturing-Stable High Growth", "Livable Spaces, Sustainable Environment" and "international cooperation for development" This economic road-map for the period up to 2018 forecasts a 5.5 percent annual growth rate in the economy, increase in annual exports to $277 billion, an increase in Turkey's per-capita income to $16,000, reducing unemployment to 7.2%, as well as lowering inflation to 4.5 %. With the plan; Energy Efficiency target stipulated Energy Efficiency Strategy Document published in 2012, on reducing energy intensity al least 20 percent until the year 2023 has been confirmed. To increase Energy Efficiency in Industry following actions were defined Replacing low efficient AC electric motors, which consume more than 70 percent of the electricity used in industry, with the high-efficient ones. Improving mechanisms for supporting SMEs on energy efficiency training, studies and consultancy services

45 Medium Term Program ( ) The Medium Term Program (MTP) ( ) includes measures for both energy, environment and SMEs. Energy efficiency is highlighted as one of the measures to reduce production cost in industry. Also to decrease energy intensity of the economy, current energy efficiency studies and activities will be continued. Natural resources to be used efficiently, wastes will be recovered to contribute to the economy Trough environment-friendly approaches those have new business opportunities ad, income sources, opportunities for development of new products and technologies the green growth the will be supported. According to the Sustainable cities approach, environmental sensitivity and quality of life will be increased with applications such as; waste and emission reduction in cities, increase energy, water and resource efficiency, recycling, noise and visual pollution prevention, use eco-friendly materials. In manufacturing and services, renewable energy, eco-efficiency, ecofriendly practices such as clean production technologies will be supported and environmentally friendly development of new products and branding will be encouraged

46 ENERJİ YÖNETİMİ DERNEĞİ (EYODER) Turkey places a strong emphasis on energy management. The total number of certified energymanagers in Turkey reached 4600 in September Energy managers have been assigned in752 industrial establishments and in 689 commercial buildings. Energy management units havebeen established in 25 industrial zones and 26 electricity production facilities as of June Each year, an international energy manager course is organisedin Turkey. Energy managersfrommore than 25 regional countries have been trained as part of this programme.

47 PROJECTS Projects on Energy Efficiency and Clean Production implementations in SMEs KOSGEB involved or carried out 3 projects which contribute Green Growth for SMEs trough Energy Efficiency and Environment actions covered by these projects Project Duration: 2 years Project Budget: 1.7 m. TL Implementing Partners: KOSGEB Project Objective: The general objective of the project is to improve the capacity building of KOSGEB and prepare the KOSGEB s environment road map (including specific support models for SMEs). To achieve this objective, the Project has four main components as follows: To increase the qualifications of KOSGEB s staff, To develop national methodologies, support mechanism from the international best practices and learned experiences, To implement site applications especially on waste treatment, eco-efficiency and industrial symbiosis and To disseminate the learned results. Project is still going on.

48 PROJECTS Energy Efficiency Project in the SMEs in Turkey Project Duration: 3 years Project Budget: 3 m. Euro Implementing Partners: French Development Agency (AFD), KOSGEB Project Objective: The ultimate objective of the project is to contribute t o improve energy efficiency in Turkish SMEs (industry and services). The project intermediate objectives are to support KOSGEB in fulfilling its new mandate on EE through the two following main objectives:. Strengthen the institutional and incentive framework for promoting energ y efficiency to SME Contribute to develop an energy efficiency market in the SME sector The project activities have been started June 2013.

49 PROJECTS Improving Energy Efficiency in Industry in Turkey Project Duration: 5 years Project Budget: USD (KOSGEB USD) Implementing Partners: GEF, UNIDO, UNDP, KOSGEB, General Directorate Renewable Energy, Technology Development Foundation of Turkey (TTGV) and Turkish Standards Institution (TSE) Project Objective: The Project Objective is to improve energy efficiency of the Turkish industry by enabling and encouraging companies in the industrial sector for efficient management of energy use by different energy conservation measures and energy efficient technologies. The project s objective is to be achieved through delivery of the following components: Institutional-regulatory framework and national energy management standard (EnMS) Capacity building and awareness-raising among industry and energy service providers Supporting an auditing program Demonstration of system optimization and energy efficiency interventions Monitoring, evaluation and lessons learned The project activities have started with an inception phase in February 2011.

50 EVD COMPANIES (TURKISH ESCO) - Energy Management Services - Energy audits, - Efficiency improvement projects (VAP-EIP) - VAP implementations - Projects for voluntary agreements - Energy efficiency implementations - Energy Manager trainings - Energy Labels(for existing buildings) - Consulting

51 SMEs in the Turkish Economy Industry, and SMEs in particular, are at the heart of Turkey's economic development. Turkey's total 3,2 million enterprises, SMEs are present in all sectors of industry and services. Share of SMEs in total Enterprise activities NumberofEnterprises % Number of Persons Employed 76% Generated Added Value Achieved by SMEs 53,30% Total sales 63% Investment 54% Exports 62,60% Imports 38,50% Total Commercial R&Ds 36, 8% Total credits 25,60% Source: Tülin Keskin

52 Sectoral Distribution of SMEs SMEs in Turkish Economy Source: KOSGEB Data Base

53 SMEs in Turkish Economy KOSGEB Supports on EE Annual Energy Consumption Range (as toe) Pre-audit support up to.. (TL) Energy Audit SMEs up to (TL) Consultancy for Energy Efficiency Projects up to (TL) toe and over toe Over 200 toe Energy Management training support - Up to (TL) In addition to that supports, some grants are offered for energy efficiency and renewable energy projects under other KOSGEB Support Programs such as the SME Project Support Program, the R&D, Innovation and Industrial Application Support Program, the Thematic Project Support Program and the Cooperation-Leaguing Support Program

54 Application: Every year in January Project preparation: ESCO (Energy Efficiency Service Companies) Repayment period: 5 years Project implementation period: 2 years Project costs: TL 1,000,000 Support: At most 30% of project costs Required standard: TS EN ISO (in force as of 01/01/2014) Support is provided: After project implementation Priority: Projects with short re-payment periods EVKK approval and contract with MOE FINANCIAL SUPPORT EIP Support for Industrial Enterprises

55 EIP Application-Evaluation-Support EIP Application FINANCIAL SUPPORT EIP Support for Industrial Enterprises Evaluation by a Commission EIP Support Inspection at the location ( I ) APPROVAL EIP Contract APPROVAL Evaluation by a Commission Inspection at the location( II ) Implementation

56 FINANCIAL SUPPORT VOLUNTARY AGREEMENT Support for Industrial Enterprises Application: Every year in October Agreement: Reduction of the average energy intensity by 10% Agreement implementation period : 3 years Support amount: At most 20% of annual energy consumption TL 200,000 Required Standard: TS EN ISO (in force as of 01/01/2014) Support is provided: 3 years after the agreement EVKK approval and contract with MOE

57 FINANCIAL SUPPORT VOLUNTARY AGREEMENT Support for Industrial Enterprises VOLUNTARY AGREEMENT (VA) Application-Evaluation-Support Application for VA Evaluation by a Commission VA Support APPROVAL APPROVAL Agreement Evaluation by a Commission Monitoring

58 From9 May th Region Incentives for Energy Efficiency Investments Energy efficiency investments in present manufacturing plants with a minimum annual energy consumption equivalent to 500 TOE that achieve energy savings per unit product of at least 20%, and whose return of investment period is at most 5 years. Investments in electrical power generation from waste heat in a plant by way of heat recovery (not including power generation facilities using natural gas). This resolution also includes investments in liquefied natural gas (LNG) and underground gas storage facilities with a minimum investment amount of TL 50 million. Such investments, irrespective in which region they are made, will havethe same incentives as investments in the 5 th region.

59 5 th Region Incentives for Energy Efficiency Investments Applicable incentives for the 5 th Region VAT exemption, Customs Tax exemption, Tax reduction, Contribution to the employer s share of insurance premiums, Contribution to interest payments, Allocation of land for investments

60 ENERJİ YÖNETİMİ DERNEĞİ (EYODER) ENERJİ YÖNETİMİ DERNEĞİ SELMAN ÖLMEZ