Energy efficiency Doing more with less

Transcription

1 Energy efficiency Doing more with less Richard Pinnock President of Energy business group 1

2 What is energy efficiency? According to the World Energy Council (WEC), energy efficiency refers to the ratio between energy outputs (services such as electricity, heat and mobility) and inputs (primary energy) There are many sources of energy efficiency throughout the energy chain, such as Exploration and production of primary energies like oil, gas and coal Transmission and storage of primary energy Generation and transmission of electricity End use of energy for industrial, commercial and residential purposes Enhanced energy efficiency is a win-win option and fully in line with the WEC s key goals the 3 A s: Accessibility: every household in the world should have access to energy Availability: security of supply issue Acceptability: environmental impacts, especially greenhouse gas emissions 2

3 There are many opportunities for improvement along the value chain Key opportunities in the energy value chain: Electricity generation: the kwh s generated per unit of fuel input Energy storages to improve the security of supply Cogeneration of power and heat to fully utilise fuel energy Electricity transmission and distribution; technical and non-technical losses as a proportion of kwh s fed into the system Mobility use: fuel consumption per kilometre of distance travelled or tonnes of products shipped Other uses: heat for industrial processes, heating, cooling and lighting of buildings, street lighting, private consumption 3

4 Many actions are in use but new measures are needed Price driver traditionally, there has been a connection to the price of oil: the higher the price of oil, the stronger the interest in energy efficiency), need for information, for example metering of actual consumption Voluntary industry action plans best practices, benchmarking, measurable and continuous improvements a natural way to cut costs and improve competitiveness Legislative measures direct or indirect, for example emission trading schemes (ETC) Standards, labelling, codes and information best way to achieve improvement in domestic use and transport make comparison easier between similar products Joint industry-government partnerships in energy R&D important tool to help technologies from test bed to market for instance new LED technology for lighting (Millennium Prize 2006 Winner) 4

5 Why is energy efficiency a hot topic in the EU? Energy costs are rising Energy costs represent a significant share of costs in industrial businesses and in private households Lot of ageing power generation capacity The EU Commission s target is to improve efficiency by 20% by 2020 Energy efficiency is becoming an important energy source negajoules GW /MWh 1'400 1'200 1' Price futures on EEX Base 2007 Base 2008 Peak 2007 Peak Generation mix in EU 25 and future developments Existing oil Existing gas Existing coal Existing nuclear New thermal capacity (incl. nuclear) Replacement thermal capacity (incl. nuclear) Hydro Renewables (excl. hydro)

6 EU wants to show the way to better energy efficiency Energy challenges in EU Dependence on imports of primary energy fossil fuels come mainly from outside Europe climate change commitments ageing power generation capacity inefficient use of energy estimated to cost EUR 100 billion/a! The realized emissions in 2004 in relation to the Kyoto target Austria 34,10 % Spain 22,30 % Italy 19,40 % Belgium 9,30 % Switzerland 8,30 % Germany 3,20 % Serbia 0,00 % Croatia -0,50 % France -1,80 % Czech Republic -16,70 % Slovakia -22,10 % Hungary -27,50 % Romania -41,40 % Bulgaria -47 % -60 % -50 % -40 % -30 % -20 % -10 % 0 % 10 % 20 % 30 % 40 % Green Paper on Energy Efficiency Doing More with Less (2006) 390 Mtoe can be saved = 20% of uncontrolled consumption target to use less energy but maintain same quality of life action plan prepared for how to realise this (max.) potential more than 100 action items identified, including not only technical actions but also political, fiscal and behavioural measures The 20% reduction target is very ambitious but even its partial implementation will change the business environment in EU countries more than anticipated 6

7 How to achieve 20% savings in EU: example of actions Full implementation of existing directives (Eco-Design Directive for Appliances, Labelling Directive, CHP Directive, Directive on Energy End Use and Energy Services) Setting new energy performance requirements for all energyconsuming products (e.g. computers, TV sets, office / street lighting) and energy production (especially for small generation) and vehicles Fiscal measures, carbon taxes, white certificates, use of price driver Other technical measures like promotion of renewable energy Training and information on end users In all actions Life Cycle Efficiency should be a basic principle 7

8 Negajoules getting more important as a source of energy EU25 8

9 Anyway, the EU 20% reduction target is challenging 9

10 WEO expects more than two-thirds of avoided emissions in 2030 will come from improved end-use efficiency of electricity and fossil fuels Reference Scenario Increased nuclear (10%) Increased renewables (12%) Power sector efficiency & fuel (13%) Electricity end-use efficiency (29%) Gt of CO 2 34 Fossil-fuel end-use efficiency (36%) 30 Alternative Policy Scenario WEO 2006, Alternative Policy Scenario: Global Savings in Energy-Related CO 2 Emissions 10

11 Energy efficiency as a part of Pöyry s business Basically, energy efficiency has been in our portfolio from the beginning Pöyry has focused on energy-efficient production (cogeneration, district heating & cooling etc.) Joint energy team (Energy & Forest Industry) established to carry out forest industry energy studies and energy efficiency projects three-stage concept: 1. energy audit, 2. development and set-up of EE programmes 3. implementation programmes developed by Pöyry Pöyry has a team of 20 people for efficiency measurements and energy audits which operates worldwide In the building sector, Pöyry has performed energy audits and measurements, and offers energy management as a part of its services In the transport sector, mass transport systems, designed and implemented by Pöyry, are the most efficient way to curb emissions and energy use Pöyry has participated in an ESCO company which has so far carried out more than 20 industrial energy-saving projects 11

12 Why Pöyry s Energy Efficiency Improvement concept? Pöyry s Energy Efficiency Improvement concept is aimed to create mill wide cash flow improvements. It is an integrated approach covering whole energy chain from production to consumption -$/a ILLUSTRATIVE Power Plant Steam network Pulp mill PM 1 PM 2 Total savings in energy costs 12

13 Case study: Pulp and paperboard mill Site: Mixed hardwood kraft pulp and paperboard production Project: Energy efficiency review for integrated pulp & paper mill Scope: Overall energy economy of energy production, pulp mill, and paper machines Savings: Identified annual energy savings EUR million, depending on the marginal fuel used with EUR million investments (incl. review costs) 13

14 Case study: Identified savings at pulp and paperboard mill Power house Reduction of gas consumption in condensing power generation Fuel consumption optimisation Leak repairs Boiler network control optimisation Boiler blow-down heat exchanger repair Back-pressure reduction Feed water pump system changes Pulp mill and recovery line Lowering pulp mill hot water demand and switches from steam to hot water Improved heat recovery from bleach filtrates Investments in condensers Sooth-blowing operational corrections Insulation improvements in lime kilns Preheating of additives Paper mill Heating changes (steam -> hot water) Reduction in steam venting (Improved steam header control) Changes in heating of supply air Pump system modifications and improvements Control improvements and modifications 14

15 Case Study: ESCO concept CLIENT SERVICE AGREEMENT EQUIPMENT SUPPLIERS ESCO Co. FINANCING SUB- CONTRACTORS PERFORMANCE RISK ENGINEERING In an ESCO project the Client has only one contracting party, ESCO Co. ESCO Co. is responsible for financing, engineering, contracting, procurement and performance guarantee 15

16 Case Study: ESCO concept - principal of shared savings Costs ESCO-SERVICE FEE COST SAVINGS CLIENT`S ENERGY COSTS ESCO- SERVICE PERIOD Time CLIENT GETS PART OF SAVINGS IMMEDIATELY 16

17 Case Study: ESCO concept Inesco Oy was the first ESCO Company in Finland, founded in 2000, whose main business is based purely on the ESCO concept Independent of manufacturers and energy suppliers Activities concentrated in the industrial sector: energyintensive pulp & paper, metals and chemical industry Main focus currently on the Finnish market, one pilot project done in Germany in 2004 (SCA Hygiene Products, Kostheim) 22 projects implemented, annual energy savings > MWh (210 GWh heat, 13 GWh electricity) Savings equal to: annual energy consumption of over family houses annual energy supply of 110 wind mills annual reduction of tco 2 in greenhouse gases 17

18 Case Study: Russia Overall energy savings potential is estimated to be 45 % of current energy consumption Russia s energy intensity is twice that of the USA, 2.3 times higher than the world average, and three times higher than in developed European countries and Japan Energy saving potential by end-use sector: Housing (residential) sector Mtoe or 26-27% of total fuel and energy consumption Industrial sector (incl. construction) Mtoe Transport Mtoe or 39-44% of total consumption Top priorities in Russian energy policy: Reduction of total final consumption / GDP Diversification of fuels Reduction of CO 2 Law on Energy Efficiency has been in force since 1996 The law is being amended at present, including financial incentive mechanisms for energy-saving activities and for promoting production and sales of equipment that meets Best Available Technologies in terms of energy efficiency 18

19 Case Study: Russia Energy efficiency targets and forecast change in energy intensity A federal programme for improvement of energy efficiency in Russia is targeted to reduce energy intensity / GDP to 62. 5% of the 2006 level by 2015 Energy efficiency priorities Power sector Metallurgy and other energyintensive industries Instruments for achieving the results Competition (2006) 283 registered organisations carrying out >700 audits 19

20 Selected Pöyry energy efficiency references Recent projects Stora Enso; Enocell, Kotka, Varkaus, Heinola, Imatra, Reisholz M-real; Äänekoski, Alizay, Tako Board, New Thames, Kirkniemi, Powerflute, Savon Sellu (debottlenecking and energy) Mondi, Merebank; SCA; Kostheim Weyerhaeuser energy improvements; Grande Prairie, Campti Current energy study proposals Enocell; Secondary heat study M-real, Alizay; Secondary heat system and paper machines Botnia; Energy audit at five pulp mills APPM, Arkhangelsk; Energy audit ENCE; Energy audit at three pulp mills in Spain M-group; Energy audit at 30 paper mills Paper machine audits Mead Westvaco; Evadale energy audit 20

21 In summary the market is huge Definition and estimated market size for efficient energy use and energy savings Covers the whole value chain, not only the equipment i.e. monitoring, auditing and certification of energy production and consumption, energyefficient machines, equipment and systems and low-energy equipment, insulation 21

22 In summary the market is huge Pöyry is ready 22

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