Survey on Industrial Energy Efficiency

8/10/2019 Survey on Industrial Energy Efficiency

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TABLEOFCONTENTS

TableofContents ............................................................................................................... 1

ListofTables....................................................................................................................... 2

ListofFigures ..................................................................................................................... 2

I. Introduction................................................................................................................ 5

II. EnergyManagementPractices.................................................................................... 7

A.

EnergyPlanning

and

Management

Responsibility ........................................................7

B. EnergyandEquipmentProcurement ..........................................................................10

C. EnergyMeasurementsandProcessControl................................................................11

D. PerformanceReview....................................................................................................12

III. EnergyEfficiencyandProcessImprovements............................................................ 16

IV. ReadinesstoInvestinEnergyEfficiency.................................................................... 22

V. BarrierstoImprovedEnergyManagementandEnergyEfficiency ............................. 26

VI. SupportingEnergyEfficiencyinEnterprises .............................................................. 28

VII. Conclusions .............................................................................................................. 30

AppendixADatabaseof250Companies

AppendixBParticipatingCompanies


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Fig.9StaffAwarenessProgramsinPlacetoEncourageEnergyConservationandEfficiency.

..........................................................................................................................................10

Fig.10PercentageofCompaniesConsideringEnergyCostsoverLifetimewhenPurchasing

EnergyConsumingEquipment.........................................................................................11

Fig.11FrequencyofMeasuringandAnalyzingEnergyConsumptionbyRespondents.......11

Fig.12PercentageofCompaniesMeasuringEnergyConsumptionthroughDifferent

SectionsintheProductionProcess..................................................................................12

Fig.13 PercentageofCompaniesMeasuringtheEfficiencyofDifferentAuxiliarySystems.12

Fig.14PercentageofCompaniesthathaveEnergyPerformanceIndicators. .....................13

Fig.15EnergyPerformanceIndicatorsUsedbyCompanies................................................13

Fig.16PercentageofEnergyCoststoTotalProductionCosts.............................................14

Fig.17PercentageofCompaniesCarryingOutEnergyAudits.............................................14

Fig.18FrequencyoftheConductofEnergyAudits. ............................................................14

Fig.19

People

Carrying

Out

Energy

Audits. ..........................................................................15

Fig.20UsefulnessofEnergyAuditsRecommendations.......................................................15

Fig.21PercentageofRecommendedEnergyEfficiencyMeasuresthatwereImplemented.

.......................................................................................................................................... 15

Fig.22PercentageofCompaniesthatSetAnnualEnergyConsumptionReductionTargets.

..........................................................................................................................................16

Fig.23PercentageofCompaniesthatAchievedTargets. ....................................................17

Fig.24PotentialEnergyEfficiencyImprovementthatCompanyAchieved. ........................17

Fig.

25

Potential

Energy

Efficiency

Improvement

that

the

Company

can

Achieve. .............18

Fig.26SkillsandExperienceLevelsofCompanyStaffinImplementingEnergyEfficiency

Projects. ...........................................................................................................................18

Fig.27EnergyEfficiencyProject/MeasureforCompressedAirSystems.............................19

Fig.28EnergyEfficiencyProject/MeasureforPumpingandFanSystems. .........................19

Fig.29EnergyEfficiencyProject/MeasureforHeatDistribution.........................................20

Fig.30EnergyEfficiencyProject/MeasureforMotors/DriveSystems. ...............................20

Fig.31EnergyEfficiencyProject/MeasureforRefrigeration. ..............................................20

Fig.32EnergyEfficiencyProject/MeasureforHeatGeneration..........................................21

Fig.33EnergyEfficiencyProject/MeasureforHeatRecovery. ............................................21

Fig.34PaybackPeriodforEnergyEfficiencyProjects/Measures.........................................22

Fig.35MajorCapitalInvestmentorChangesinProductionFacilitiesovertheNext5Years.

..........................................................................................................................................23

Fig.36 MajorCapitalInvestmentorChangesinProductionFacilitiesbySector..................23


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Fig.37ExpectedPaybackPeriodforEnergyEfficiencyProjects/MeasuresPlannedforthe

Next2and5Years. ..........................................................................................................24

Fig.38StrategiesforFinancingEnergyEfficiencyProjects. .................................................25


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I. Introduction

ThepurposeofthisSurveyistocollectdataandinformationonenergyconsumption,

energy management practices and energy efficiency of enterprises in different industrial

sectors

and

to

compile

this

information

in

an

energy

efficiency

database.

Data

and

informationcollectedthroughtheSurveyareneededtodefinethecurrentenergyefficiency

and energy management baseline in the enterprises and will be used by UNIDO and the

Department of Energy (DOE) and Department of Trade and Industry (DTI) in the

development and formulation of a national project to promote and support improved

energyefficiencyinindustry.

Thereare68companies(27.2%)whorespondedfromthe250companiesinvitedto

the UNIDO survey. These companies have a total of 111 plants/facilities and 28,875

employees. ThesecompaniesrepresenttheindustrialsectorsasindicatedinTable1:

Table1

No.

of

Companies

that

Responded

to

the

UNIDO

Survey.

SectorsNo.of

Respondents

No.ofPlants/

Facilities

No.of

Employees

Ceramics 1 1 Nodata

Chemicals 16 36 2,964

Food&Beverage 11 22 10,859

Plastics 12 18 1,750

Pulp&Paper 3 4 470

Steel 7 11 774

Sugar 9 10 4,206

Others

9

9

7,852

Total 68 111 28,875

Manycompanies(72.1%)prefernottoanswerthesurveyquestionrelatedto2008

annualrevenues.

On the use of national or international management systems standards, 47

companies (69.1%) have adopted these management standards. As shown in Figure 1, a

high percentage of companies from all the sectors except the sugar sector are currently

makinguseofmanagementsystemstandards. Figure2showsthedifferentmanagement

systemstandards

used/adopted

by

the

companies.

Despite the existence of management standards, about 69% of the companies

surveyedarestillconsideringusingnewmanagementsystemstandards. Thisistrueforall

sectorsasshowninFigure3.


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0%

20%

40%

60%

80%

100%

120%

Ceramics Chemicals Food&

Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCEN

TAGE

Yes

No

Noresponse

Fig.1PercentageofCompaniesMakingUseofNationalandInternationalManagement

Standards.

ISO9001

47%

ISO14001

20%

ISO22000

4%

HACCP

14%

OHSAS18001

15%

Fig.2ManagementStandardsUsedbytheIndustries.

0%

20%

40%

60%

80%

100%

120%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Yes

No

Noresponse

Fig.3PercentageofCompaniesConsideringUsingNewManagementSystemStandards.


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II. EnergyManagementPractices

In this section, companies were asked about their current energy planning and

management responsibilities, energy and equipment procurement, energy measurements

andprocesscontrolandperformancereview.

A. EnergyPlanningandManagementResponsibility

This section includes questions on whether companies have established their own

energy policies, the main drivers of energy consumption reduction, the key personnel

involvedonenergymanagementanddecidingofinvestmentsandwhetherstaffawareness

programsareinplace.

Based on the survey, 52.9% of the respondents have developed their own energy

policies. Figure 4 shows the responses per sector. Majority of the chemicals, pulp and

paperand

sugar

companies

have

crafted

their

energy

policies

while

many

of

the

companies

under the plastics and steel companies have no identified energy policies. Out of the

respondentshavingenergypolicies,86.1%havesetenergyefficiencyorperformancegoals.

0%

20%

40%

60%

80%

100%

120%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PE

RCENTAGE

Yes

No

Noresponse

Fig.4CompanieswithEnergyPolicies.

On the importance of energy consumption reduction in relationship to all other

issues

top

management

is

considering,

67.6%

of

the

companies

said

that

they

consider

energyreductionasveryimportantwhile20.6%saidtheyarethemostimportantissueas

showninFigure5.


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0%

20%

40%

60%

80%

100%

120%


Beverage

Pl as ti cs Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Yes

No

Noresponse

Fig.6PercentageofCompanieswithaPersonAssignedtheResponsibilityforEnergy

ManagementandEfficiency.

Onthenumberofhoursallottedtoenergymanagementandefficiency,about37%

ofthecompaniessaidthatthenumberofhoursallottedarefrom14hourswhile19%and

14%allot59hoursand1015hours,respectively,asshowninFigure7.

37%

0%

7%

2%

0%

16%

5%

14%

19%

0% 5% 10% 15% 20% 25% 30% 35% 40%

14hrs

59hrs

1015hrs

1620hrs

2125

hrs

2630hrs

3139hrs

40hrsandover

Dontknow

PERCENTAGE

Fig.7No.ofHoursAllotedtoEnergyManagementandEfficiency.

Inmakinginvestmentdecisions,theDirectorGeneralorManagingDirectorofabout

48%ofthecompaniesdecidesontheinvestmentsforenergyefficiencyprojectswhileabout

33% of the companies have their investments decided upon by the Technical Director or

ManagerasshowninFigure8.


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Director

Gen/Managing

Director

48%

Finance

Dir/Mgr/Dept

13%

Technical

Dir/Mgr/Dept

33%

ChiefEnergy

Manager

6%

Fig.8PersonsMakingInvestmentDecisionsinCompanies.

Manyoftherespondentshavestaffawarenessprogramsuchasmonitoringenergy

use, placing signs/stickers, giving information to staff on energy conservation, setting

targetsforenergyuse,andrecognitionofenergyreductioninitiativesasshowninFigure9.

6%

66%

68%

80%

40%

49%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Nostaffawareness

programsinplace

Recognition ofenergy

reductioninitiatives

Settingtargetsfor

energyuse

Givinginformation to

staff

Placingsigns/stickers

Monitorenergyuse&

cost

PERCENTAGE

Fig.9StaffAwarenessProgramsinPlacetoEncourageEnergyConservationandEfficiency.

B. EnergyandEquipmentProcurement

Inthissection,companieswereaskediftheenergycostsovertheoperatinglifetime

is taken into account in the purchasing decisionmaking process. Majority (79.4%) of the

companies takes into account energy costs over lifetime in purchasing energy consuming

equipment. Figure10showstheresponseforeachsector.


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0%

20%

40%

60%

80%

100%


Beverage

P la st ic s P ul p&

Paper

Steel Sugar Others

PER

CENTAGE

Yes

No

Noresponse

Fig.10PercentageofCompaniesConsideringEnergyCostsoverLifetimewhenPurchasing

EnergyConsumingEquipment.

C. Energy

Measurements

and

Process

Control

In thissection,companieswereaskedaboutmeasurementandanalysesofenergy

consumption of the plant, different sections andauxiliary systems. Almost all companies

take energy measurements and do analysis of their energy consumption. However, they

differ inthe frequencyof takingmeasurements. Mostof therespondents (64%)measure

andanalyzeenergyconsumptionasshowninFigure11.

36%

18%

6%

3%

64%

22%

0% 10% 20% 30% 40% 50% 60% 70%

Daily

Weekly

Monthly

Annually

Fromtimetotime

Donotmeasure

PERCENTAGE

Fig.11FrequencyofMeasuringandAnalyzingEnergyConsumptionbyRespondents.

Outof thesurveyed companies,76.5% measuresenergyconsumption through the

different sections of the production process while 58.8 % measures the efficiency of

different auxiliary energy systems such as motor systems, pumping systems, steam and

processheatsystemsandother. Figure12showstheresponsesofthedifferentsectors in


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measuringthroughdifferentsectionsoftheproductionprocesswhileFigure13showsthe

responsesofcompaniesmeasuringtheefficienciesofauxiliaryequipment.

0%

20%

40%

60%

80%

100%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Yes

No

Noresponse

Fig.12PercentageofCompaniesMeasuringEnergyConsumptionthroughDifferent

Sectionsin

the

Production

Process.

0%

20%

40%

60%

80%

100%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Yes

No

Noresponse

Fig.13 PercentageofCompaniesMeasuringtheEfficiencyofDifferentAuxiliarySystems.

D. PerformanceReview

Inthissection,companieswereaskedaboutenergyperformanceindicators,energy

costsvsproductioncostsandenergyaudits.

More than half of the respondents (56%) reported that they have energy

performance indicators(EPI). Figure14showsdetailsofresponsespersector. Thereare

two(2)mostcommonindicatorsbeingusedbythecompaniesasindicatedinFigure15and

theyaretheenergyconsumptionperunitproductionandenergycostperunitproduction.


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0%

20%

40%

60%

80%

100%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Yes

No

Noresponse

Fig.14PercentageofCompaniesthathaveEnergyPerformanceIndicators.

6%

46%

7%

41%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

No response

Energy

consumption/PhP

value

Energycost/unit

prodn

Energy

consumption/unit

prodn

PERCENTAGE

Fig.15EnergyPerformanceIndicatorsUsedbyCompanies.

For those respondents not using EPI, the companies were asked to indicate the

percentageof energy costs to totalproductioncosts in the last3 years. Figure16 shows

that about 33% of the respondents have energy costs that are about 15% of the total

productioncost. Forsomecompanies,energycostsmaybeashighasover31%.

Energy performance indicators may be set through the conduct of energy audits.

Basedonthesurvey,onlyabout48%oftherespondentscarryoutenergyaudits. Figure17

showsthat

almost

all

sectors

(55%)

except

the

chemical

sector

conduct

energy

audits.

Out

ofthecompaniescarryingoutaudits,about70%doauditseveryyearorlessthanayearas

showninFigure18.

Forcompanieswhohaveconductedenergyaudits,58%aredonebycompanystaff,

6%byexternalproviderand36%companystaffwithexternalproviderasshown inFigure

19.


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0%

20%

40%

60%

80%

100%

05% 610% 1120% 2130% over31%

PERCENTAGE

2006

2007

2008

Fig.16PercentageofEnergyCoststoTotalProductionCosts.

0%

20%

40%

60%

80%

100%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Yes

No

Noresponse

Fig.17

Percentage

of

Companies

Carrying

Out

Energy

Audits.

70%

9%

12%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Everyyearorless

Every2yrs

Every3yrs

Every5yrsormore

PERCENTAGE

Fig.18FrequencyoftheConductofEnergyAudits.


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Companystaff

58%External

service

provider

6%

Companystaff

&external

36%

Fig.19PeopleCarryingOutEnergyAudits.

Whenaskedabouttheusefulnessoftheenergyauditrecommendations,70%ofthe

respondents indicatedthatmostof the recommendationswereusefulasshown inFigure

20. In Figure 21, about 46% of the respondents have indicated that most of the energy

efficiencymeasuresrecommendedintheauditwasimplemented.

21%

70%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80%

All

Most

Some

PERCENTAGE

Fig.20UsefulnessofEnergyAuditsRecommendations.

18.0%

36.0%

46.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

All

Most

Some

PERCENTAGE

Fig.21PercentageofRecommendedEnergyEfficiencyMeasuresthatwereImplemented.


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Out of the 33 companies that implemented the recommendations stated in the

energyaudit,88.6%showedsignificantsavings.

III. EnergyEfficiencyandProcessImprovements

In this section, companies were asked whether energy consumption reduction

targetshavebeensetandachievedandwhethertherearesettargetsfor2009. Thesurvey

furtheraskedtheenergyefficiencyprojects/measuresimplementedbythecompanyforthe

last2years.

Basedonthesurvey,about47%oftherespondentsindicatedthattheircompanyset

annualenergyconsumptionreductiontargetswhile49%saidthattheydonothaveannual

reductiontargets. Figure22showstheresponsespersector.

0%

20%

40%

60%

80%

100%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

YesNo

Noresponse

Fig.22

Percentage

of

Companies

that

Set

Annual

Energy

Consumption

Reduction

Targets.

As shown in Figure 22, a high percentage (more than 50%) of companies in the

chemicalsandplasticssectordonotsetannualenergyconsumptionreductiontargets.

For companies who have set annual energy consumption targets for 2008, about

41%of thecompaniesachieved their reduction targetsandhaveadjusted their reduction

targetsfor2009whileabout22%didnotachievetheirtargetsasshowninFigure23. There

wereabout9%companieswhohavesetannualenergyreductiontargets in2008buthave

notprovided informationonwhether theywere achievedornot. Whenaskedabout the

potentialtotalenergyefficiencyimprovementsthatcanbeachievedoverthenext5years,

about 34% said that they can achieve 610% as shown in Figure 24. The total potential

energy efficiency improvement per sector is shown in Figure 25. The chemicals sector

indicatedthatenergyefficiency improvementscanbeashighasmorethan21%whilethe

food and beverage, steel and sugar sectors believe that they can still improve energy

efficiencybyupto20%.


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6%

22%

41%

22%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Noresponse

Didnot

monitor/tracktarget

Didnot achieve

target

Startedin2009

Achievedtarget

PERCENTAGE

Fig.23PercentageofCompaniesthatAchievedTargets.

24%

7%

4%

19%

34%

12%

0% 5% 10% 15% 20% 25% 30% 35% 40%

05%

610%

1115%

1621%

>21%

Idontknow

PERCENTAGE

Fig.24PotentialEnergyEfficiencyImprovementthatCompanyAchieved.

Ontheskillsandexperiencelevelsofcompanystaffimplementingenergyefficiency

projects,ahighpercentageofthecompaniesratedthemselvesonthe2(lowmedium)and

3(mediumhigh)levelsforthedifferentskillsasshownonFigure26. Otherskillsmentioned

were energy audits with low to medium level of skill and attending training seminars

organizedbytheEnergyEfficiencyPractitionersAssociationofthePhilippines(ENPAP),Inc.

About 993 energy efficiency projects/measures have been identified by the

companiestohavebeen implementedforthelasttwoyears. Thetoprankingprojectsare

tabulatedonTable3.


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0%

20%

40%

60%

80%

100%


Beverage

P last ics Pu lp&Paper Steel Sugar Others

0-5% 6-10%

11-15% 16-21%

> 21% Dont know

No response

Fig.25PotentialEnergyEfficiencyImprovementthattheCompanycanAchieve.

2.13

2.65

2.63

2.49

1.00 2.00 3.00 4.00

Knowledgeofbest

practice

Energymanagement

practices

Estimatingenergy

savings

Assessingenergy

savingspotential

Fig.26SkillsandExperienceLevelsofCompanyStaffinImplementingEnergyEfficiency

Projects.

Table3TopRankedEnergyEfficiencyProjects/MeasuresImplemented.

Rank EEProjects/Measures Percentage(%)

1 Compressedairsystems 10.7%

2

Pumping

and

fan

systems

10.4%

3 Heatdistribution 10.3%

4 Motors/drivesystems 9.3%

5 Heatgeneration 7.0%

6 Refrigeration 6.7%

7 Heatrecovery 5.9%

8 Electricaldistribution 5.7%

9 Energyefficientlighting 4.5%

10 Introductionofenergymonitoring 3.3%


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CompressedAirSystems

Themostcommonenergyefficiencyprojects forcompressedairsystemsbasedon

thesurvey includea) leakdetectionandmanagement,b)matchingthe loadwithdemand

(pressure and flow), c) replacing compressors to more efficient units, and d) installing

variablespeedcontrolsasshowninFigure27. Majorityoftheseprojectswereimplemented

inthe

sugar,

chemicals

and

plastics

sectors.

Leakdetection&

management

35%

Matchload

w/demand

23%

Networkedcontrols

7%

Variablespeed

control

12%

Replace

compressors

13%

AddStorage

10%

Fig.27EnergyEfficiencyProject/MeasureforCompressedAirSystems.

PumpingandFansSystems

Likeinthecompressedairsystems,manyofthecompanies installedvariablespeed

controls and matched the load with demand in their pumping and fan systems, most

notably in the chemicals, plastics and sugar sector as shown in Figure 28. Many of the

chemicalcompanieshavecorrectedflowobstructionsandleaks(valve,dampers,etc.)while

manyofthesugarmillshavereplacedinefficientpumps.

Matchload

withdemand

22%

Variablespeed

control

26%

Correctflow

obstructions

andleaks

19%

Replacepumps

17%

Upgrade

coolingtowers

16%

Fig.28EnergyEfficiencyProject/MeasureforPumpingandFanSystems.

HeatDistribution

The most common energy efficiency project/measure implemented on heat

distribution isaddingpipe insulationasshown inFigure29. Thishappenedmostly in the

chemicalsandfoodandbeveragesectors.


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Steamtrap

maintenance

32%

Pipes

insulation

37%

Cleaning

or

replacementof

heat

exchangers

31%

Fig.29EnergyEfficiencyProject/MeasureforHeatDistribution.

Motors/Drivessystems

Most of the companies in the food and beverage, plastics, chemicals and sugar

sectorshaveinstalledadjustable/variablespeeddrives(47%)asshowninFigure30.

Refrigeration

Figure31 shows thatabout44%of thecompanieshavemostlydone maintenance

jobs by cleaning heat transfer surfaces of refrigeration systems. Many of these projects

havebeenimplementedinthesugar,foodandbeverage,chemicalsandplasticssectors.

Ener gy efficient

motors

25%

Ad jus tab le /

variable speed

drives

47%

Replace/rew ind

policy

28%

Fig.30EnergyEfficiencyProject/MeasureforMotors/DriveSystems.

Replace

compressors

25%

Replace

condensers

18%

Cleaningheat

transfer

surfaces

44%

Variablespeed

control

13%

Fig.31EnergyEfficiencyProject/MeasureforRefrigeration.


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HeatGeneration

About 80% of the companies have implemented maintenance and fuel control

projects as opposed to equipment replacement as shown in Figure 32. These measures

includeboilerfeedwatertreatment,boilertuneupandmeasureandcontrolofcombustion

fuelwhichwereimplementedmostlyinthefoodandbeverage,chemicalsandsugarsector.

Boilerfeedin

watertreatment

32%

Backpressure

turbines

4%

Measure&

controlof

combustionfuel

21%

Boiler

replacement

16%

Boilertuneup

27%

Fig.32

Energy

Efficiency

Project/Measure

for

Heat

Generation.

ElectricalDistribution

Two (2)commonprojectsonelectricaldistribution involvepower factorcorrection

and replacement of transformers. About 68% of the respondents from the food and

beverage,sugar,chemicalsandplasticssectorhaveimplementedpowerfactorcorrection.

HeatRecovery

Figure

33

shows

the

distribution

of

the

energy

efficiency

projects/measures

implemented under heat recovery. About 45% of the companies under the food and

beverage, sugar and chemicals sector have considered condensate recovery followed by

preheatingcombustionair(20%).

Preheatprocess

heatingloads

15%

InternalCombustion

enginesw/heat

recovery

10%

Absorptioncooling

7%

Combinedcycle

combustion

turbines

3%

Preheat

combustionair

20%

Condensate

recovery

45%

Fig.33EnergyEfficiencyProject/MeasureforHeatRecovery.


22/33

EnergyEfficientLighting

About58%oftheenergyefficientlightingsystemsprojectshavebeeninstalledinthe

chemicals,plasticsandfoodandbeveragesectors.

IntroductionofEnergyMonitoring

Theintroductionofenergymonitoringdevicesorsoftwarehasgainedimportancein

the food and beverage, sugar and chemical sectors representing about 57% of the total

respondentsthatinstalledthismeasure.

Asalastiteminthissection,therespondentswereaskedtobrieflydescribetwo(2)

mostsignificantprojectsimplementedandtoindicatethecostandthepaybackperiod. The

projects implemented have costs ranging from PhP 10,000.00 for lighting and air

conditioningprojectinachemicalcompanytoPhP25millionforreplacinginefficientchiller

packageinafoodcompany. Thepaybackperiodsfortheseprojectswereinvestigatedand

about41%ofthecompanieshaveindicatedthattheirprojectshavepaybackperiodsof12

yearsfollowed

by

27%

with

payback

period

of

less

than

one

year

as

shown

in

Figure

34..

27%

7%

0%

7%

8%

10%

41%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

5yrs

Not calculated

Infonotavailable

PERCENTAGE

Fig.34PaybackPeriodforEnergyEfficiencyProjects/Measures.

IV. ReadinesstoInvestinEnergyEfficiency

In

this

section,

the

companies

were

asked

future

plans

on

energy

efficiency

particularlymajorcapital investmentinthenextfiveyears includingproductionexpansion,

closure and rationalization of plant, process plant replacement/modernisation, auxiliary

equipmentreplacement/modernisation,andothers. Asshown inFigure35,about38%of

thecompaniesareplanningtoreplace/modernizeauxiliaryequipment. Respondentsfrom

theceramics,pulpandpaper,steelandsugarsectorsasshowninFigure36indicatedthese

investmentplans.


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5%

38%

29%

29%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Closure&rationalisationof

plant

Productionexpansion

additionalplant

Processplant

replacement/modernization

Auxiliaryequipment

replacement/modernization

PERCENTAGE

Fig.35MajorCapitalInvestmentorChangesinProductionFacilitiesovertheNext5Years.

0%

20%

40%

60%

80%

100%


Beverage

Plastics Pulp&

Paper

Steel Sugar Others

PERCENTAGE

Production expansion

Closure

and

rationalization

Process

plant

modernization

Auxiliaryeqpt

replacement

Fig.36 MajorCapitalInvestmentorChangesinProductionFacilitiesbySector.

The companies were asked if they are planning or considering to invest in energy

efficiencyprojectsoverthenext2yearsand5years. Table4showsthetop5projectsthat

have been considered and planned for investments in the next 2 and 5 years with the

corresponding percentages of projects either planned or considered. It can be observed

thatthereexistsahighpercentageofplannedenergyefficiencyprojectsforthenext2years

and5years.

The respondents were again asked to briefly describe two (2) most significant

projectsthatarebeingconsideredforinvestmentsandtoindicatethecostandthepayback

period. TheprojectsimplementedhavecostsrangingfromPhP30,000.00forrehabilitation

of HVAC systems in a chemical company to PhP 25 million for optimizing chemical

production. Theexpectedpaybackperiodsfortheseprojectswere investigatedandabout

21%ofthecompanieshave indicatedthattheirprojectsmayhavepaybackperiodsof12

yearsfollowedby16%withpaybackperiodof35yearsasshowninFigure37.


24/33

Table4PlannedorConsideredInvestmentsonEnergyEfficiencyProjectsfortheNext2

and5Years.

Next2Years Next5Years

Top5ProjectsPlannedor

ConsideredTop5Projects

Plannedor

Considered

1.

Energyefficientlighting 69%Planned31%Considered

1.

Pumpingand

fan

systems43%

Planned

57%Considered

2. Improvedprocess

control

76%Planned

24%Considered2.

Refrigeration76%Planned

24%Considered

3.

Motors/drivesystems74%Planned

26%Considered

3. Renewableenergy

projects

67%Planned

33%Considered

4. Heatrecovery60%Planned

40%Considered4. Electricaldistribution

55%Planned

45%Considered

5.

Compressedairsystems77%Planned

23%Considered5.

UpgradeHVACcontrols57%Planned

43%Considered

13%

16%

3%

13%

12%

29%

14%

0% 5% 10% 15% 20% 25% 30% 35%

5yrs

Notcalculated

Infonotavailable

PERCENTAGE

Fig.37ExpectedPaybackPeriodforEnergyEfficiencyProjects/MeasuresPlannedforthe

Next2and5Years.

The companies were then asked if they are planning or considering investing in

energymanagementimprovementactionoverthenext2yearsand5years. Table5shows

howtherespondentsrankedtheenergymanagementimprovementmeasuresinthenext2

and5yearswiththecorrespondingpercentagesofprojectseitherplannedorconsidered. It

canbe

observed

that

there

exists

ahigh

percentage

of

planned

energy

efficiency

projects

for the next 2 years while for the next 5 years, there is a high percentage of projects

consideredforinvestmentascomparedtoplanned.


25/33

Table5PlannedorConsideredInvestmentsonEnergyManagementImprovementforthe

Next2and5Years.

Next2Years Next5Years

TopProjects(Ranked)Plannedor

ConsideredTopProjects(Ranked)

Plannedor

Considered

1.

Developmentof

energy

efficiencyaction

plan/programme

78%Planned

22%Considered

1.

Introductionof

metering

forindividualproduction

units/sections

36%Planned

64%Considered

2. Stafftrainingonrational

useofenergy

58%Planned

42%Considered

2. Introductionofenergy

managementsystem

33%Planned

67%Considered

3.

Stafftrainingonenergy

systemoptimization

61%Planned

39%Considered

3. Introductionofregular

inhouseenergy

audits/diagnosis

50%Planned

50%Considered

4.

Introductionofmetering

forindividualproduction

units/sections

54%Planned

46%Considered

4.

Developmentofenergy

efficiencyaction

plan/programme

20%Planned

80%Considered

5.

Introductionofenergy

monitoring

75%Planned

25%Considered

5.

Stafftrainingonrational

useof

energy

60%Planned

40%Considered

6.

Introductionofregular

inhouseenergy

audits/diagnosis

70%Planned

30%Considered

6. Stafftrainingonenergy

systemoptimization100%Planned


managementsystem

60%Planned

40%Considered


monitoring

50%Planned

50%Considered

8.


performancetargets

84%Planned

16%Considered

8.


performancetargets

50%Planned

50%Considered

The last question under this section pertains to the strategies adopted by the

industry

in

financing

their

energy

efficiency

projects.

Figure

38

shows

that

about

63%

of

the

companiesrelyontheuseoftheirowncapitalresources.

63%

9%

10%

6%

13%

0% 10% 20% 30% 40% 50% 60% 70%

Useofowncapital

resources

LoanCapital

Leasing

GovSubsidies

EnergyServices

Company

PERCENTAGE

Fig.38StrategiesforFinancingEnergyEfficiencyProjects.


26/33

V. BarrierstoImprovedEnergyManagementandEnergy

Efficiency

Thereareseveralbarriersthatexistintheindustrieswhichinhibitthepromotionof

energymanagementandenergyefficiency. Thesurveyaimedtodeterminethesignificant

factorslimiting

the

company

to

invest

in

more

human

and

financial

resources

to

improve

energy efficiency. Table 6 shows the significant factors ranked accordingly. The most

significantfactorinlimitingcompaniesininvestinginmorehumanandfinancialresourcesin

improved energy management and efficiency is that companies have other resources

investmentpriorities.

Table6SignificantFactorsLimitingCompaniesinInvestingMoreHumanandFinancial

ResourcesinImprovedEnergyManagementandEfficiency

Factors Weight

1.

Have

other

resources

investment

priorities

2.70

2.

Energyefficiencyprojectshavelongpaybackperiod 2.56

3. Equipmentisoldbutstilloperatingeffectively

replacementisnotcosteffective2.49

4.

Thereisinsufficienttechnicalexpertiseinthecompanyto

identify,developandimplementenergyefficiencyprojects2.43

5. Existingproductionprocesscontrolandenergyuse

measurementsystemsareinadequate2.43

6.

Thereisinsufficientinformationoncostsandbenefitsof

energyefficiencyprojects2.42

7.

Themarketdoesnotplaceanyaddedvalueonenergy

efficientlyperforming

companies

2.42

8. Existingpoliciesareinadequatetopromoteandsupport

energyefficiencyinindustry2.38

9.

Lackofexternaldriverssuchasmandatoryenergy

efficiencytargetsorCO2emissiontargets2.38

10.

Thereisinsufficientexpertiseinthecompanytoimplement

energymanagement2.36

11.

Insufficientcapital 2.31

12.Energyefficiencyisnotpromotedbyequipment/plant/

servicesuppliers,soaredifficulttosource2.15

13.Pooravailabilityofcommercialcreditandloans 2.10

14.

Companyis

already

energy

efficient

2.10

15.

Totalenergycostsaresmallorareasmallpercentageof

productioncosts2.06

16.

Fearthatenergyefficiencyprojectsmaycauseproduction

interruptions1.88

17.

Topmanagementisnotcommittedtoenergyefficiency 1.62


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While Table 6 shows the general ranking of factors limiting in investing in energy

managementandefficiency,Table7showshowthedifferentsectorsrankedthesefactors.

Forexample,themostsignificant limitingfactor inthechemicalssector isthatthemarket

doesnotplaceanyaddedvalueonenergyefficientlyperformingcompanieswhilethefood

sectorsmostsignificantlimitingfactoristhatenergyefficiencyprojectshavelongpayback

period.

Table7SignificantFactorsLimitingCompaniesinInvestingMoreHumanandFinancial

ResourcesinImprovedEnergyManagementandEfficiencybySectors.

FACTOR ChemicalsFood&

BeveragePlastics

Pulp&

PaperSteel Sugar Ceramics

1. Totalenergycostsaresmallorareasmall

percentageofproductioncosts2.17 2.29 1.44 1.33 1.80 3.00 1.00

2.

Topmanagementisnotcommittedto

energyefficiency1.77 1.86 1.56 1.00 1.50 2.00 1.00

3. Thereisinsufficientexpertiseinthe

companytoimplementenergy

management

2.23 2.38 2.56 2.00 2.33 2.63 2.00

4. Thereisinsufficienttechnicalexpertisein

thecompanytoidentify,developand

implementenergyefficiencyprojects

2.38 2.63 2.33 2.00 2.67 2.63 2.00

5.

Existingproductionprocesscontroland

energyusemeasurementsystemsare

inadequate

2.38 2.75 2.33 1.67 2.33 2.78 2.00

6. Fearthatenergyefficiencyprojectsmay

causeproductioninterruptions1.77 1.57 2.33 1.33 1.67 2.50 1.00

7. Companyisalreadyenergyefficient 1.77 1.71 1.88 2.67 1.50 2.89 3.00

8.

Equipmentisoldbutstilloperating

effectivelyreplacementisnotcost

effective

2.46 2.13 2.13 2.67 2.14 3.63 2.00

9. Haveotherresourcesinvestment

priorities2.42 3.13 2.89 2.33 2.00 3.63 1.00

10.

Insufficientcapital 1.92 2.00 2.44 2.00 2.83 3.29 3.00

11.

Thereis

insufficient

information

on

costs

andbenefitsofenergyefficiencyprojects2.38 2.43 2.44 1.67 2.17 3.25 1.00

12.

Energyefficiencyisnotpromotedby

equipment/plant/servicesuppliers,so

aredifficulttosource

2.46 1.86 1.78 1.33 2.67 2.50 3.00

13. Themarketdoesnotplaceanyadded

valueonenergyefficientlyperforming

companies

2.77 2.43 2.44 1.67 2.20 2.25 4.00

14. Energyefficiencyprojectshavelong

paybackperiod2.23 3.14 2.56 2.50 2.50 2.63 3.00

15.

Pooravailabilityofcommercialcreditand

loans1.54 1.86 2.22 2.00 2.33 3.29 4.00

16.

Existingpoliciesareinadequateto

promoteandsupportenergyefficiencyin

industry

1.92 2.75 2.56 1.50 2.67 3.13 2.00

17.

Lackofexternaldriverssuchas

mandatoryenergyefficiencytargetsor

CO2emissiontargets

2.46 2.38 2.33 1.50 2.83 2.75 2.00

Aside from the factors limiting the companies in investing on improved energy

managementandenergyefficiency,therespondentswerealsoaskedtheadditionalfactors

thatwould limit the companies in implementing and adopting thenew ISO 50001energy


28/33

management system standards. Table8shows the significant factors ranked accordingly.

ThemostsignificantfactorinlimitingcompaniesinimplementingandadoptingISO50001is

thelackofunderstandingofwhatanenergymanagementsystemstandardisallabout. The

differentsectorsrankedthesefactors

Table8

Significant

Factors

Limiting

Companies

in

Implementing

and

Adopting

ISO

50001

EnergyManagementSystemStandards

Factors Weight

1.

Lackofunderstandingofwhatanenergymanagement

systemstandardisabout2.73

2. Themarketdoesnotplaceanyaddedvalueonenergy

efficientlyperformingcompanies2.62

3. Lackofhumanresourcestoimplementthestandard 2.61

4.

Lackofunderstandingofthecostsandbenefitsof

implementinganenergymanagementsystemstandard2.56

5.

Lackof

financial

resources

to

implement

the

standard

2.51

6. Lackofcrediblecertificationofstandardcompliance 2.47

Table9SignificantFactorsLimitingCompaniesinImplementingandAdoptingISO50001

bySectors.

FACTOR ChemicalsFood&

BeveragePlastics

Pulp&

PaperSteel Sugar Ceramics

1. Lackofunderstandingofwhatanenergy

managementsystemstandardisabout2.29 3.00 2.90 2.67 2.67 3.22 2.00

2. Lackofunderstandingofthecostsand

benefitsof

implementing

an

energy

managementsystemstandard2.00

2.90

3.10

2.00

2.50

2.75

2.00

3. Lackofhumanresourcestoimplement

thestandard2.36 2.60 2.78 2.00 2.60 3.00 1.00

4. Lackoffinancialresourcestoimplement

thestandard2.07 2.33 2.82 2.67 3.00 3.25 3.00

5. Themarketdoesnotplaceanyadded

valueonenergyefficientlyperforming

companies

2.57 2.60 2.82 2.00 2.83 2.75 4.00

6. Lackofcrediblecertificationofstandard

compliance2.21 2.40 2.73 2.00 2.67 2.88 4.00

VI. SupportingEnergy

Efficiency

in

Enterprises

In this section, the companies were asked about the support services and the

support policy measures and programmes that would be of significant value to them in

decidingtoinvestinimprovedenergymanagementandenergyefficiencyprojects.

Table10showsthesupportservices,rankedaccordingly,thatwouldbeofsignificant

valuetothecompanies indecidingto invest inenergymanagementandenergyefficiency


29/33

projects. It was found that the most significant support service is technical training of

company personnel followed closely by the availability of detailed energy efficiency

implementationmanualsfordifferentenergysystems.

Table10SupportServicesthatareofSignificantValuetotheCompaniesinDecidingto

Investin

Energy

Management

and

Energy

Efficiency

Projects.

SupportServices Weight

1. Technicaltrainingofcompanypersonnel 3.36

2. Availabilityofdetailedenergyefficiencyimplementation

manualsfordifferentenergysystems3.35

3.

Informationonenergyefficiencytechnologiesand

practices3.28

4. Financialandtechnicalappraisalofenergyefficiency

projects3.27

5. Energyauditandidentificationofenergysavingprojects 3.25

6.

Energymanagementsupportandtraining 3.25

7.

Availabilityofenergyefficiencyandenergymanagement

implementationguidance3.13

8.

Awarenessprogramsonenergymanagementandenergy

efficiencyfortopmanagement3.10

9.

Projectimplementationmanagementandsupport 3.03

10. Informationonequipmentvendorsandindustrialenergy

efficiency(IEE)servicessuppliers2.97

11.Availabilityofenergybenchmarks 2.90

12.Financialtrainingofcompanypersonnel 2.72

13.

Assistanceinpackagingprojectsforloanapplications 2.48

In terms of support policy measures and programmes, the respondents ranked

financialincentiveslinkedtoenergyefficiencytargets/projectsasthemostsignificantpolicy

measurefollowedbytheestablishmentofindustrialsectorsenergyefficiencynetworksfor

exchangeofbestpracticesasshowninTable11. Underthefinancialincentives,taxcredits,

tax rebates and accelerated depreciation of capital/equipment investments were also

rankedbythecompaniestobeofhighsignificance.


30/33

Table11SupportPolicyMeasuresandProgrammesthatareofSignificantValuetothe

CompaniesinDecidingtoInvestinEnergyManagementandEnergyEfficiencyProjects

SupportPolicyMeasuresandProgrammes Weight

1.

Fiscalincentiveslinkedtoenergyefficiencytargets/

projects3.23

Taxcredits 3.34

Taxrebates 3.33

Accelerateddepreciationofcapital/equipment

investments3.06

2. Establishmentofindustrialsectorsenergyefficiency

networksforexchangeofbestpractices3.14

3. Investmentsubsidies 3.03

Partiallyfundedenergyaudits 2.98

Loanguarantees 2.87

4.

Developmentofenergybenchmarksforindustrialsectororsubsector

3.02

5. Technologyandenergyefficiencyfairs/expositions 2.91

6. PublicEnergyEfficiencyRecognition/AwardSchemes 2.75

7.

Negotiatedenergyreductiontargetsagreements 2.69

8. EstablishmentofanEnergyManagerCertificationprogram 2.67

VII. Conclusions

Basedontheresultsofthesurveyof68companies,thefollowingcanbeconcluded:

Theparticipatingcompaniesarenotnewtomanagementsystemstandards

as majority of them have adopted either national or international

management standards. They are open to the idea of having other

managementstandardsparticularlyifitwilladdressenergymanagementand

energyefficiency.

Many

of

the

participating

companies

have

energy

policies

in

place

and

they

havesetenergyefficiencyorperformancegoalsasaresultofestablishingan

energy policy. Persons responsible for energy management and energy

efficiencyinthecompanieswerealsogivenimportance.

A high percentage of the participating companies consider energy

consumption reduction as very important. Production costs control and

reduction, corporate image/social responsibility and environment


31/33


32/33

AppendixA

DatabaseofIndustries

(250companies)


33/33

AppendixB

DatabaseofIndustries

(68companies)

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