Energy Efficiency in Germany Potential, Measures & Lessons Learnt. Christian Lehmann 24 th October 2017 Windhoek
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1 Energy Efficiency in Germany Potential, Measures & Lessons Learnt Christian Lehmann 24 th October 2017 Windhoek
2 Agenda A KONEXUS Consulting Group B Energy Consumption and Climate Goals Facts, Figures and Perspectives C Industrial Energy Efficiency D Summary and Outlook 2
3 3 Consultants for the energy industry Who are we?
4 KONEXUS Consulting Group is one of the leading consultancies for the energy industry in Germany Company profile Facts Staff: more than 50 consultants with backgrounds in business administration, engineering and law Offices: Hamburg, Düsseldorf, Munich, Berlin Clients: multinational corporations, municipal utility companies and start-ups References: more than successful projects delivered to over 260 clients International active in: Austria, Luxembourg, Switzerland, France, Czech Republic, The Netherlands Core competencies KONEXUS Consulting Group offers a full range of competencies and expertise for energy supply companies, with a consistent orientation towards practical implementation Classic consulting areas: strategy and innovation, restructuring, processes and organizations, business planning, market and competition analyses, IT-implementation Value chain: generation, storage, transport, distribution, sales, commercial services, shared services Current topics: digitization, smart metering, e-mobility Selected references 4
5 KONEXUS successfully delivered more than projects in each area of the energy industry in Europe and Germany KONEXUS project portfolio Grid Strategy Development Development of maintenance strategies Benchmarking of grid operator processes Implementation of reorganizations Cost reduction and process optimization Workforce management Sales Development of sales strategies Benchmarking of sales processes Implementation of reorganizations Cost reduction and process optimization Optimization of marketing mix Optimization of sales channels Shared Services Benchmarking of shared services processes Implementation of reorganizations Cost reduction and process optimization Skill-based routing of business transactions Efficient receivables management Digitalization of business processes Overhead Benchmarking of overhead processes Overhead Cost reduction and process optimization Optimization of logistics Reorganization of IT-systems Efficient controlling concepts Optimization Facility Management 5
6 Agenda A KONEXUS Consulting Group B Energy Consumption and Climate Goals Facts, Figures and Perspectives C Industrial Energy Efficiency D Summary and Outlook 6
7 7 From fuel to service Where does all the energy come from?
8 From fuel to service Where does all the energy come from? Global flow of energy Energy sources Conversion devices & passive systems Final services 8 Source: CULLEN, J. M. AND J. M. ALLWOOD The efficient use of energy: Tracing the global flow of energy from fuel to service. Energy policy, 1// 2010, 38(1),
9 9 Climate protection goals Where do we stand today?
10 CO 2 emissions of Germany decreased by 25% in the same time Development of energy-related CO 2 -emissions in Mt CO 2 -equivalents: Africa, China, Germany Mt CO 2 -equivalents % Africa North America South America Asia, Oceania w/o China % China EU w/o Germany -25% Germany Europe (non-eu) Middle East Source: based on Gesamtausgabe der Energiedaten Datensammlung des BMWi, 2017
11 Linear extrapolation of the current trend suggests a reduction of CO 2 emissions of 61% by 2050 Development of energy-related CO 2 -emissions in Mt CO 2 -equivalents: Germany Mt CO 2 -equivalents base year % recorded data lin. extrapolation % Source: based on Gesamtausgabe der Energiedaten Datensammlung des BMWi, 2017
12 To meet climate protection goals, Germany needs to continue its transition towards a renewable energy system Development of energy-related CO 2 -emissions in Mt CO 2 -equivalents: Germany Mt CO 2 -equivalents base year % -61% recorded data lin. extrapolation 40% reduction 55% reduction 70% reduction 80% reduction % missing Source: based on Gesamtausgabe der Energiedaten Datensammlung des BMWi, 2017
13 CO 2 -emissions per capita in Germany are almost six times higher than in Namibia Comparison of CO 2 emissions CO 2 -emissions in t , ,6 3,2 1, Germany Namibia Light bulb 2 Flight NUE- FRA-WDH 1) CO 2 -emissions in metric tons per capita 2) Production of CO 2 for one light bulb burning continuously for ten years Sources: CO2 emissions (metric tons per capita), The World Bank Group, 2016; CO2-Rechner Flugreisen, calculator.carbonfootprint.com, 2017
14 14 Supply with 100 % renewable energies Mission (im-) possible?
15 In Germany, the share of fossil fuels and nuclear power is decreasing since 1990 Share of renewables in gross electricity production: Germany Share of production in % fossil fuels nuclear power base year
16 whereas renewable energies almost reached 30% of gross electricity production in 2016 Share of renewables in gross electricity production: Germany Share of production in % fossil fuels nuclear power renewable energy base year
17 Increasing economic efficiency of renewables and "renewablefriendly policies are enabling the energy transition in Germany Share of renewables in gross electricity production: Germany Share of production in % only 2% missing fossil fuels nuclear power renewable energy lin. extrapolation goal 2025 goal 2035 goal base year
18 Agenda A KONEXUS Consulting Group B Energy Consumption and Climate Goals Facts, Figures and Perspectives C Industrial Energy Efficiency D Summary and Outlook 18
19 19 What about industrial energy efficiency? KPIs and perspectives
20 Two thirds of industrial energy consumption is used for heating Energy efficiency in industry: industrial energy consumption per area of application (2014) Energy consumption in PJ Industry Cooling Hot Water Other Process Cooling Space Heating Lighting 1% 9% ICT 1% 1% 1% 2% Transportation 22% Mechanical Energy Households 64% Commerce and Services Other Process Heat 20 Source: BMWi, Energiedaten Gesamtausgabe, 2016
21 Energy costs on gross production value are increasing steadily especially in energy/heat-intensive industries in Germany Energy efficiency in industry: proportion of energy costs on gross production value Glass Industry Pulp and Paper Industry Coal Mining Metal Production Chemical Industry Food Industry Metal Processing Machine Construction Automotive 2,5 2,3 2,2 1,7 1,0 0,8 0,8 0,7 3,4 7,3 6,7 6,6 6,2 5,6 5,9 7,1 5,2 4, % on average over three years Proportion of costs in % 21 1) EEX: European Energy Exchange Source: DIHK - Deutscher Industrie- und Handelskammertag Berlin Brüssel, 2013
22 Which measures does your company take due to the changing energy policies? Changing energy policy: companies take measures Realized Ongoing Planned No measures Energy efficiency measures 17% 38% 24% 21% Switching supplier/provider 26% 15% 11% 48% Long-term supply contracts 26% 16% 10% 48% Using renewable energies 18% 8% 10% 64% Developing own power supply 16% 7% 16% 61% Purchasing at the EEX 1) 10% 6% 81% 3% 100% 22 1) EEX: European Energy Exchange Source: DIHK - Deutscher Industrie- und Handelskammertag Berlin Brüssel, 2013
23 For what reasons does your company not realize energy efficiency potentials? Implementation of energy efficiency measures: challenges Other strategic priorities, e.g. increasing material efficiency 39% 18% No trained professionals 24% ROI of other measures is higher 19% Waiting for attractive incentive mechanisms 23 Source: EEP, Stuttgart University, 2015
24 24 How to improve (industrial) energy efficiency Examples
25 In industrial applications the whole factory system offers approaches to improve energy efficiency Overview of machines, auxiliary processes, building services and shell Solar Wind Daylight Renewable Energy Supply (Regenerative) Fuel Cells Geothermal E. CHP System Heat Pump Waste Heat Recovery Energy Losses Cooling? Energy Storage Heating? Thermal Energy Electrical Energy Operating Materials 2. Periphery Machinery and Equipment 1. Periphery Comp. Air Cool. Lub. Product Waste, Residues 25 Source: Weeber, Fraunhofer IPA, Bayreuth, 2016
26 Electrical Power Approaches to improve energy efficiency of industrial applications: optimization of manufacturing processes Stand by Production Stand by Adjustment of installed power 2 Optimization of control technology 4 Time 3 Optimization of process parameters 4 Further use of energy losses 26 Source: Böhner et al., Fraunhofer IPA, Bayreuth, 2017
27 From practical experience energy savings are ranging from 3 42 % depending on the manufacturing process Examples of energy cost savings for manufacturing processes 0% 10% 20% 30% 40% 50% 60% Adjustment of installed power 3% 40% Optimization of control technology 6% 42% Load Management 11% 31% Process adaptation/process parameters 4% 30% Lightweight Construction 5% 11% Brake Energy Recovery 4% 7% min. max. 27 Source: Böhner, Fraunhofer IPA, Bayreuth, 2013
28 Aproaches to improve energy efficiency of industrial applications: optimization of cross-sectional technologies Energy efficiency in cross-sectional technologies 70 % 50 % 30 % 30 % 30 % 25% Lighting Compressed Air Pump Systems Cooling Systems Heat Supply Ventilation Systems 28 Source: Deutsche Energie-Agentur GmbH (dena), 2013
29 Improving energy efficiency in networks supported by cooperations between industry and R&D facilities Cooperations, initiatives and funding programs etc. 29 Source: /2017
30 Agenda A KONEXUS Consulting Group B Energy Consumption and Climate Goals Facts, Figures and Perspectives C Industrial Energy Efficiency D Summary and Outlook 30
31 Summary and Outlook Economic efficiency and governmental subsidies are boosting the installation of renewable energy technologies and energy efficiency measures in Germany 86 % of industrial energy consumption is used to provide process heat and mechanical energy Depending on the industry proportions of energy costs on gross production value are varying Challenges: energy efficiency vs. other strategic priorities Energy efficiency can be increased on process and factory level Consider life cycle aspects and human behavior in the development and realization of energy efficiency measures Talk about your experiences and share your good practice solutions 31
32 Thank you for your attention Christian Lehmann Consultant KONEXUS Consulting Group GmbH Wolfratshauser Straße München Phone Fax Mobile This document was produced exclusively for use by the customer. It is not valid without the underlying detailed analyses and oral explanation. It may not be passed on to a third party without the consent of KONEXUS Consulting Group GmbH. 32
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