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Energy Efficiency in the Industry Sector Regional NDC Dialogue for Asia & Arab States, Bangkok, Thailand, 3-5 October 2018
Energy Efficiency in the
Industry Sector
Regional NDC Dialogue for Asia & Arab States, Bangkok, Thailand, 3-5 October 2018
Global industrial sector has 3 sub-sectors: (1) Energy-intensive; (2) Non-energy intensive; and, (3) Non-
manufacturing
About 53% of the total global energy usage is accounted for by the energy-intensive industries
Pharmaceutical and medical device manufacturing are under the non-energy intensive categorySource: www.statista.com/statistics/263471/industrial-energy-consumption-worldwide/; www.eia.gov/outlooks/ieo/pdf/industrial.pdf
Sustainable Development
Global Industry Sector Energy Profile
2012
9 0
228
27 %
43 %
30 %
27 %
39 %
34 %
Non-manufacturing
Non-energy
intensive
Energy
intensive
2012 2040
Global Industrial Sector Gross Output
(2012 and 2040), US$ Trillion
Global Industry Sector Energy Consumption 2012 & 2040
Source: Shelton Group’s 2016 B2B Pulse Survey; and ACEEE
Sustainable Development
Sustainability and Conservation in Businesses
Source: Shelton Group’s 2016 B2B Pulse Survey; and ACEEE
Sustainable Development
Why Do Businesses Invest in Energy Efficiency?
➢ Increased productivity, reduced operational costs, optimized
investments;
➢ Minimized environmental compliance costs, reduced business
risks and smaller environmental/carbon footprint;
➢ Compliance with international environmental standards for
accessing new markets (global supply chains and export
markets, new green markets, public procurement, etc.);
➢ Improved relationship with stakeholders (investors, banks,
regulatory bodies, local communities, consumer associations,
etc.).
Sustainable Development
Benefits of Energy Efficiency to Industries
Sustainable Development
Sustainable Manufacturing: Creation of manufactured products that use processes, which minimize negative environmental impacts, conserve energyand natural resources, are safe for employees, communities and consumers and are economically sound.- US Department of Commerce
Economically
feasible
Economic
SocialEnvironmental
Safety, welfare and
well-being of people
Energy and natural
resources
conservation
Energy for Sustainable Development
Economic
Sustainable Development
Industry Sustainability
Customer and marketreputation
Green Image
Green Competencies
Pollution Control
Green processesand packaging
Solid waste & use ofhazardous materials
Health &Safety
Employment Practices
Safety audits & assessmentsStandardized health &
safety conditions
TrainingDisciplinary and security
practices
Document control procedureProduct quality vigilance
Internal quality audits
Quality
Technical Capability
ServiceDelivery
Product handling & preservationProduct identification & traceability
Customer complaint handlingPost market surveillance
System analysisTechnologyapplication
Production,
Transport,
and
Ordering
Cost
Environmental
Social
Energy Pyramid
Sustainable Development
Identification of Energy Saving Opportunities
Prioritization & Implementation of Energy Saving Opportunities (ESOs)
Walkthrough
Energy Audit
List
Preliminary
Energy Audit
Quantify
Detailed Energy
Audit
Engineer
Sustainable Development
Energy Efficiency
Category Practices Category Practices
Leadership
Engagement
Commitment to specific energy consumption and GHG
emission reduction targets
Implementation
– Existing
Buildings
Retro-commissioning of existing buildings on a regular basis
Inclusion of energy and emissions reduction targets
in the corporate performance
Development and enforcement of standardized
building operating manuals
Funding and support for senior staff for energy and
sustainability management Conduct of annual building maintenance upgrades
Strategic Energy
Management
Planning
Development of a Strategic Energy Master PlanUtilization of high efficiency HVAC systems, including
boilers and chillers
ISO 50001 Certification Reduction of lighting power densities; utilization of
day-lighting; occupancy sensorsConduct of gap assessments and energy audits to
identify opportunities for improvementUtilization of demand controlled ventilation;
displacement ventilation
Setting up and implementation of internal systems
for prioritizing and tracking energy investments Tighter and better insulated building envelopes
Use of energy management tools to track energy
consumption and energy utilization performance Utilization of high efficiency fan and pump motors
Use of sub-metering and applicable energy
monitoring technologies
Information, communication and education programs
for building occupants
Dedicated
Financing
Standardized ROI and Lifecycle Costing tools Implementation
– Alternative
Energy
Generation
On-site and remote RE-based power generation
Integration of EE project budgets into capital outlay
budget cycles Combined heat and power
Tracking of project results and ROI Clean energy grid procurement
Participation in utility and other government-
sponsored EE incentive and financing programs
Implementation
– ProcurementImplement energy efficiency purchasing specifications
Implementation
– New Buildings
Use of green building standards or design guides
Human Capital
Development
Reprocess and reuse single use medical devices
Use of integrated design processes Certification programs for facilities and building
management staff
Implementation
– Existing
Buildings
Separation of thermal conditioning from ventilation Continuing education and participation in professional
associations
Application of building management systems Reporting and
Recognition
Regular energy consumption and EC&EE initiatives
reporting, where required by government
Use of high performance windows and glazing
Energy Consumption in Manufacturing
Efficient HVAC systems, and other thermal equipment/systems
Process and waste heat recovery
Separation technologies
Plant optimization
Energy Consumption in Industrial Facilities
Building design and control, air-conditioning, ventilation
Advanced building management systems.
Innovative building insulation and window glazing
Improved and energy efficient lighting systems
Cross-cutting challenges
Light weighting and materials substitution
Decarbonization and dematerialization
EE Technologies: Industry Sector
Sustainable Development
Energy Efficient Appliances & Systems
Appliances complying with
energy performance
standards are from 10% to
40% more efficient.
Energy efficient building
materials
Intelligent buildings for
energy efficient and
optimal use, for comfort,
safety and health.
Sustainable Development
BENEFITS:
Save Money – avoid system under- or, non-
performing, and costly repairs/replacements
Efficient Utilization of Energy – avoid energy wastage
Avoidance of Sudden Breakdowns – avoid
operational problems
********************************
Monitor Equipment/System Performance- Strategic measurements & analysis determines optimal
equipment use
- “What can’t be measured/monitored, can’t be controlled”
Sustainable Development
Regular Equipment & System Maintenance
Motors and Machines
• Are machines left running when not in operation? If so, why?
• Are energy-efficient electric motors, pumps, and equipment used?
• Are electric motors and equipment sized based on their loads? Are these equipped with variable speed controls
Compressed Air
• If compressed air is used, are there noticeable leaks in the compressed air system?
• Do compressed air systems use the minimum pressure needed to operate equipment?
Lighting
• Is lighting focused where workers need it?
• Is lighting controlled by motion sensors in storage areas, and other areas that are intermittently used?
• Are energy-efficient lighting devices used?
Process Heating
• Are oven and process heating temperatures maintained at higher levels than necessary?
Facility Heating and Cooling
• Are work areas heated or cooled more than necessary?
• Do employees have control over heating and cooling in their work areas?
• Are exterior windows or doors opened to adjust heating and cooling?
Sustainable Development
Energy Waste Minimization
Preventive Integrated Environmental Policy
applied to the entire Production and Service cycle
Products:•Reduction of wastethrough better design•Use of waste for new products
Processes:•Conservation of raw materials, energy, water•Reduction of emission at source•Evaluation of technology option•Reduction of costs and risks
Services:•Efficient environmental management in designand delivery
Impacts:
✓Improved efficiency
✓Better environmental performance
✓Increased competitive advantage
Sustainable Development
Cleaner Production in Industrial Processes
Ref: A. Vijayan & C. Varadarajan, Cleaner
Production- A Move Towards Sustainability
TECHNOLOGY
OPERATION
PRODUCTION PROCESS
Improve
equipment and
process
control
Improved
management
Workers skills &
process control
PRODUCTS
modification
Re-use and
recycling
Change
INPUT MATERIALS
New
technology
WASTES &
EMISSIONS
Sustainable Development
Cleaner Production in
Industrial ProcessesRef: UNEP/SIDA, Basics of Cleaner Production
The primary financing options available for companies to finance
energy efficiency projects are typically:
• Internal funding through the company’s operating and capital
budgets.
• Bank loans based on the company’s credit history and
borrowing capacity.
• Leasing from a third party.
• Shared and guaranteed savings structures offered by energy
services companies (ESCOs) with a guarantee of cash flow for
the company.
Sustainable Development
Financing EE Improvements
Sustainable Development
Sustainable energy: Energy solutions that address development issues related to economic growth, environment and social equity simultaneously
Challenges:
• Social
• Economic
• Environmental
Key input for
economic growth
Economic
SocialEnvironmental
Poverty alleviation
and gender
Impacts of energy
production and use
Energy for Sustainable Development
Manuel L. Soriano, Senior Technical AdvisorEnergy, Infrastructure, Transport & Technology
UNDP-Global Environment Finance
Bureau of Planning and Programme Support
UNDP Bangkok Regional Hub, Bangkok, Thailand
Tel: +66-2-3049100 Ext 2720
Thank You
Energy for Sustainable Development
Energy Challenges
SocialEconomic Environmental
Sustainable Energy Through Market Transformation
Energy Access Energy Efficiency Renewable Energy
CROSS-CUTTING ISSUES:
Gender, Climate Resilience, Energy Security, Disaster Risk Reduction and Recovery
Sustainable Development
Ensure access to affordable, reliable, sustainable, and modern energy for all
By 2030, ensure universal access to affordable, reliable and modern energy
services (Indicator: Percentage of population with primary reliance on clean
fuels and technologies at the household level)
Sustainable Development
SDG 7: Affordable and Clean Energy
Promoting energy efficiency across end-use sectors, creating strong market
demand and incentives for public and private investment in energy efficiency via
a combination of policy, financial de-risking and direct incentives.
Key UNDP services on EE: technical assistance, policy and program support for:
• Promoting energy efficiency in all energy end-use sectors.
• Assisting governments in addressing barriers to EE investments.
• Supporting national and local governments to design and adopt energy
efficiency policies and legislation and capacity-building for policy
enforcement among authorities and relevant market stakeholders.
• Assisting governments with energy-integrated solutions. This includes energy
efficiency and disaster risk reduction as well as transport in urban and peri-
urban areas.
Sustainable Development
Increasing the global rate of EE improvements
