UNIDO Industrial Energy Efficiency and
Technology Programme
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Presented by:Nguyen Khac Tiep
Industrial Development OfficerIndustrial Energy Efficiency
UNIDO
ECOWAS CREEE Workshop12-13 April 2010
Ouagadougou, Burkina Faso
Structure of the Presentation
I. Energy Use and EE in IndustryII. UNIDO’s Approach and Programme II. UNIDO’s Approach and Programme
on EE in IndustryIII. IEE in West Africa
Context
� Globally, industry has the potential to reduce its energy intensity and emissions by up to 26–32%, providing a 8-12% reduction in total energy use and CO2
emissions. Potentials are above average in DCs and TEs
� Industrial energy use can be up to 50% of the total national energy use
� EE is one of the cheapest ways of creating more energy available for the country
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country
� Global growth of industrial energy demand and CO2 emissions is concentrated in emerging economies
� Energy efficiency improvements can increase competitiveness and growth
� Governments are increasingly aware, and concerned about, both energy security and climate change � assistance is necessary to accelerate development of capacity to respond effectively
Global CO2 Emissions by Industrial Sector
Iron & steel
30%
Paper, pulp and
Machinery
2%
Non-ferrous
metals
2%
Other
17%
Non-metallic
minerals
26%
Chemical and
petrochemical
16%
Food and
tobacco
4%
3%
Source: IEA 2008
Long-Term CO2 Emissions Reduction Potentials in Industry(compared to Baseline, 2050)
(IEA, Technology Transitions for Industry, 2009)
Fuel switching 20-25%
Scenario Framework:
Global emissions -50%Industrial emissions -20%
Efficiency 50-60%
CCS 25-30%
20-25%
Efficiency (on top of baseline) constitutes half of the potentialThis requires a doubling of the technical efficiency improvement rate
Industrial emissions -20%
Industrial Energy Use in Developing Economies� Characteristics of Developing Economies:
– Industrial energy use can be more than 50% of the total and can produce supply problems
– Lead global growth in both industrial energy use and carbon-related emissions
– Emerging industrial infrastructure requires many new facilities, rapidly built & expanded
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rapidly built & expanded– Includes substantial growth in energy intensive sectors
� It is much more cost-effective to build in energy efficiency the first time than retrofit it later
� In industry, a missed opportunity for energy efficiency may not reoccur- for decades or at all until the original installation fails or becomes obsolete
UNIDO’s Three inter-related thematic priorities
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Poverty reduction through productive activities
Trade capacity building Energy and Environment
promoting access to energy for productive uses, and supporting patterns of energy use by industry that are in line with a low-carbon
developmental path
UNIDO’s Energy and Climate Change Programme
About UNIDO’s Energy ProgrammeTechnical Co-operation� Industrial Energy Efficiency� Renewable energy technologies for industrial applications� Renewable Energy for Productive Uses
Service areas
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Service areas� Policy advice and development support – international forum function � Capacity building for institutions, enterprises & market players in DCs and TEs
� Technology transfer
Global Forum� Co-convener of Technology Transfer under UNFCCC Process� International Technology Centres � Partnerships, Networks and global events: UN Energy, SG energy advisory group
UNIDO Industrial Energy Efficiency Project Portfolio
21 countries:AngolaArgentinaBrazilChina EcuadorEgyptIndiaIndonesia
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IndonesiaIranMalaysiaMexicoMyanmarMoldovaPhilippinesRussiaSri LankaSouth AfricaThailandTurkeyViet NamUkraine
Total portfolio value
500 million USD over the period 2010-2014
Total UNIDO Budget65 million USD
GEF funded projects
UNIDO is an Implementing Agency of the Global Envir onment Facility
Other Energy Efficiency projects
Projects under development
UNIDO Industrial Energy Efficiency Program
Focus Areas1. Energy management system standards
2. Systems optimization (steam system and process heating, compressed air, pumps, fans, etc.)
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3. SMEs
Why?� Energy management prerequisite for sustainable and continual improvement
of energy efficiency and performance in industry
� EMS and systems optimization are very cost-effective
� Limited policy attention so far for all three topics
� Requires in-depth knowledge, in line with UNIDO strengths
Taking a Comprehensive ApproachGoal: integrate energy efficiency projects into existing
management structures for continual improvement
Elements:1. Energy management standard 2. Training (energy management, system optimization)2. Training (energy management, system optimization)3. Capacity building- create cadre of system experts able to
develop IEE projects, and train others4. Access to tools to identify opportunities and document
compliance5. Recognition of companies that make outstanding efforts to
improve their energy efficiency6. Agreements with industrial sectors that establish plant-specific
energy efficiency targets
Typical Project Structure (key issues)
�Policy support�Capacity building (industry and government
awareness, management support)awareness, management support)�Pilot projects (technology/supply chain)�Financing (access, capacity building)
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Energy Management Systems� Energy management systems standards have proven successful in
delivering incremental energy and cost savings compared to baseline operations: 1-2% annual incremental efficiency gains in industry
� Relevant and applicable for large industries and SMEs, no matter what the technological and production processes are
� Gets management involved, engrain measurement and monitoring
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� Gets management involved, engrain measurement and monitoring
� Energy management system standards provide best-practices based, structured and comprehensive guidance on how to integrate energy efficiency into daily management practices using the well-known “plan-do-check-act” approach (ISO 9000, 14000, etc.)
� Complementary policy-driven supporting and capacity building programs are needed
� ISO 50001, EnMS available mid 2011
System optimization: Why a system approach matters in industry
� Steam and electric motor-driven systems account for more than 50% of final manufacturing energy use worldwide
� In industry energy efficient equipment per se does not guarantee energy
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� In industry energy efficient equipment per se does not guarantee energy savings when it is part of a bigger system
� System approach involves looking at how components function together to deliver a certain end-use
� Energy efficiency improvement potential through system optimization is on average 15-30%
UNIDO Industrial Energy Efficiency ProgramSystem optimization: Why a system approach matters in industry
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Courtesy of Don Casada, Diagnostic Solutions and US Department of Energy
15 kW motor efficiency = 91%
Combined motor & pump efficiency = 59% System efficiency = 13%
UNIDO China Motor Systems Energy Conservation Program
System / facilityTotal Cost
[$US]Energy savings
[kWh/year]Payback Period
40 GWh energy savings identified ���� 23% average gain per systemPayback less than 2 years
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System / facility[$US] [kWh/year] Period
Compressed air/forge plant 18,600 150,000 1.5 years
Compressed Air/machinery 32,400 310,800 1.3 years
Compressed air/tobacco 23,900 150,000 2.0 years
Pump system/ hospital 18,600 77,000 2.0 years
Pump system/ pharmaceuticals 150,000 1.05M 1.8 years
Motor systems/ petrochemicals 393,000 14.1M 0.5 years
SMEs�25% of global industrial energy use�Even higher share of the efficiency potential�Typically: bricks, lime, glass, ceramics, food
and beverage, foundries, paper mills etc.and beverage, foundries, paper mills etc.�Key to success is a focus on efficiency as
part of a package including the bottom line, productivity, quality
�UNIDO preparing technical guides for SME to implement ISO 50001
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SMEs Energy Conservation and GHG Emission Reduction in
Chinese Township and Village EnterprisesGoal: Reduce GHG emissions of China TVE by increasing utilization of EE technologies and products in the brick, cement, metal casting and coking sectors
Immediate objectives included:
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Immediate objectives included:� Building technical capacity for EE and product quality improvement in TVEs � Completed 2007 � USD 8 M GEF funding, USD 4 M revolving fund� USD 150 M co-financing investment� Creating special access to commercial financing for TVEs in the four sectors to
undertake energy conservation and GHG emission reduction activities � Capacity building, investment project development � Expanding application of best practices regulatory reform to the national level
Energy Conservation and GHG Emission Reduction in Chinese Township and Village Enterprises – Phase II
GEF Funding: 8 million USDSome achievements of the project
Target ActualTarget Actual
85,000 tons CO2/yr emission reduction from 8 pilot-demo projects
193,000 tons CO2/yr emission reduction from 8 pilot-demo projects
10.55 million USD co-funding 150 million USD co-funding
100 feasibility studies for self-replication projects developed by project end
101 self-replication projects implemented by project end � 714,000 tons CO2/yr reduction
Direct GHG emission reduction = 4.5 million tons CO 2 Indirect GHG emission reduction = 30 million tons C O2Project results strongly influenced China’s 11 th Five Year Plan’s 20% EE targetGoal is to re-produce this model through the UNIDO GEF project for India
UNIDO Program on Renewable Energy Technologies for Industrial Applications
� Solar thermal for industrial process heat
� Biomass for industrial process heat
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� Bamboo biorefineries
� Heatpumps
UNIDO Program on RET for industrial applications
Solar thermal energy for industrial heatIndustrial sectors and processes with the greatest potential for solar thermal uses
Start with Dairy as part of the India GEF project
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Source: Weiss et al, 2005, Market potential and sys tem designs for industrial solar heat applications
Biomass – Bamboo
� Bamboo accounts for 10 % of wood harvest
� Rapid growth
� Versatile: materials, energy and food: a proven biorefinery conceptbiorefinery concept
� Significant UNIDO activities in many countries on three continents, GEF Project in Sri Lanca
� A successful project requires supply, processing, markets and a supporting infrastructure
� Important UNIDO activities in Assam; strong interest abroad to build on the Indian model
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� Significant but Unevenly Distributed Energy Resourc es
� Very Low Access and Energy Consumption Rates
� Heavy Dependence on Fossil Fuels for Commercial
West Africa: The Energy Context
� Heavy Dependence on Fossil Fuels for Commercial Energy
� Energy efficiency not prioritized
� Renewable Energy Potential Huge but largely untappe d
� Weak Policy and Institutional Linkages
GEF Strategic Programme on West Africa- Target Countries -
Benin Guinea Bissau
Burkina Faso Liberia
Burundi * MaliBurundi * Mali
Cape Verde Mauritania
Chad * Niger
Côte d'Ivoire Nigeria
The Gambia Senegal
Ghana Sierra Leone
Guinea Togo
GEF GRANT: $ 45 MILLION
* additionally, Burundi und Chad have requested to be part of the programmatic approach.
GEF Strategic Programme on West Africa
KEY OBJECTIVES:
� Taking a programmatic approach to promote renewable energy and energy efficiency projects at the national / regional level in countries of the regionregional level in countries of the region
� Scaling up access based on renewable energy and promoting energy efficiency measures in industrial, households and public sectors
� Creating markets to catalyze private sector investments and public-private partnerships
STRATEGIC PRIORITY AREAS:
� Promoting renewable energy based mini-grids for enhancingaccess and supporting productive capacities
GEF Strategic Programme on West Africa
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� Promoting sustainable energy production from bioenergy
� Promoting energy efficiency in the residential and commercial buildings, and industrial sectors
� Promoting sustainable innovative systems for urban transport
SPWA - GEF Funds for West African CountriesNumber of Countries participating: 18
SIERRA LEONE, US$ 2mio CAPE VERDE, US$ 2mio
BENIN, US$ 2mio
BURUNDI, US$ 2mio
BURKINA FASO, US$ 2mioTOGO, US$ 2mio
THE GAMBIA, US$ 2mio
SENEGAL, US$ 2mio
NIGERIA, US$ 11.3mio
NIGER, US$ 2mio MAURITANIA, US$ 2mio MALI, US$ 2mio
GHANA, US$ 2mio
GUINEA, US$ 2mio
LIBERIA, US$ 2mio
GUINEA-BISSAU, US$ 2mio
CHAD, US$ 2mio
COTE D'IVORE, US$ 2mio
CAPE VERDE, US$ 2mio
Allocation of Resources under the SPWA according to the four Priority Areas
(Total amount of US$ 45.3 million) Energy Efficiency in
Industry, Refrigeration Appliances and
Sustainable UrbanTransport
US$ 11,900,000
Renewable Energy Technologies for Modern Energy
ServicesUS$ 5,700,000
Additionally,
Mini-grids based on Renewable Energy for
Rural ElectrificationUS$ 16,900,000
Energy Efficient Lighting in Public and
Residential SectorsUS$ 10,100,000
Values including Agency fees
4 Projects
11 Projects
6 Projects
5 Projects
Additionally, one project on
Regional Coordination
and Cooperation is included in the
SPWA
US$ 700,000
IEE for ECOWAS
� Awareness raising on benefits of EE, EnMS, and Syst em Optimization, sharing of information and experience
� EE strategy
� Training of regional IEE experts on EM and System O ptimization
� A core of experts at the ECOWAS CREEE
� Pilot projects on EM and System Optimizations in po tential sub-sectors: Cement and Brewery
List of selected projects for the SPWA (I)
The following list of projects have been approved or are in the process of being approved by GEF – the total amount of GEF
funding for all 27 projects will be US$ 45 million.
Strategic Focus: Promotion of Renewable Energy Tech nologies for Modern Energy Services
Cape Verde UNIDO Promoting renewable energy and energy efficiency on the Brava Island
Guinea UNEPPromotion of renewable energy technologies (solar, wind, bioenergy) for electrification and energy services
Guinea-Bissau UNEP Promotion of renewable energy technologies (solar, wind, etc.) for productive uses
Niger UNDPNational Reference Programme of Access to Modern Energy Services with Low Carbon Emissions (Programme PRASE)
List of selected projects for the SPWA (II)
Strategic Focus: Mini-grids based on Renewable Ener gy for Rural Electrification
Chad UNIDOPromotion of Renewable Energy based mini-grids for rural electrification and productive uses in Chad
Cote d'Ivoire UNIDOPilot electrification project of communities through mini-grids based on RE / photovoltaic system
The Gambia UNIDO Promoting renewable energy based mini grids for productive uses in rural areas in The Gambia
Guinea UNIDO Installation of multipurpose mini-hydro power systems (for provision of energy, irrigation, etc.)
Guinea-Bissau UNEPPromotion of renewable energy technologies based mini-grids (small hydro / biomass, etc.) for rural electrification
Liberia UNIDO Installation of multi purpose min-hydro infrastructure (energy, irrigation, etc.)
Nigeria UNIDOMini-grids based on Renewable Energy (hydro, solar and biomass) sources to augment rural electrification
Sierra Leone UNIDO Promoting mini grids based on Small Hydropower
Burkina Faso UNDP Promotion of Jatropha Curcas as a resource of Bioenergy in Burkina Faso
MaliUNEP/ AfDB
Bioenergy Utilisation (electrification and energy services etc. project
Mali UNDP Promotion of the use of agrofuels from the production and use of Jatropha oil in Mali
List of selected projects for the SPWA (III)
Strategic Focus: Energy Efficient Lighting in Publi c and Residential Sectors
Burundi WB Energy Efficient Lightning Project in Burundi
Cote d'Ivoire UNEP Promotion of energy efficiency in public lighting programme
Mauritania WB Mauritania CFL deployment Program
Mauritania UNEP Promotion of energy efficiency in public lighting
Nigeria UNDP Promoting Energy Efficiency in Residential and Public Sector
Togo WB Togo - Efficient Lighting Program
Strategic Focus: Promoting Energy Efficiency in Ind ustry, Refrigeration Appliances and Sustainable Urban Transport
Benin WB Energy Efficiency Program in Benin
Burkina Faso WB Ouagadougou Transport Modal Shift in Burkina Faso
Ghana UNDPPromoting of Appliance Energy Efficiency and Transformation of the Refrigerating Appliances Market in Ghana
Nigeria WB Nigeria Urban Transport Project
Senegal WB PROGEDE II – Eco-village
Regional Coordination and Cooperation
Sub-regional UNIDOMSP on knowledge management, capacity building including training, coherence and coordination