Training Programs in Energy Efficiency and Renewable EnergyApplications for the Industrial Sector Training 1: EE & RE Awareness Raising Training for Top Managers UNIDO Prepared by: Econoler 1
Training Programs in Energy Efficiency and RenewableEnergy Applications for the Industrial Sector• UNIDO/GEF project• Objective: • Promote the adoption of RE and EE technologies and services in industries. • The ultimate goal of this UNIDO/GEF project is to reduce GHG emission by developing and promoting a market environment that will stimulate investments in RE and EE which, in turn, will drive economic growth, support industrial development in Pakistan.• Industry consumes 43% of Pakistan’s total final energy consumption• ENERCON estimates potential for 25% energy savings within industry 2
IEA Blue MAP Scenario 3
Sources, Energy Conversion and LossesPump Example: From Power generation to fluid deliverySource: \"Making Tomorrow's Buildings More Energy Efficient\" on the WBCSD website (http://www.wbcsd.org) 4
Training Agenda Hour Sessions12.00 noon Module 1: Introduction to Enterprise Energy Management: Strategic business drivers and barriers. 12:30 pm Module 2: Introduction to standards based energy management systems: ISO 50001. 13:00 pm Module 3: Establishing the EnMs: Process; policy; resourcing; and continuous improvement. 01:30 pm Lunch 02:30 pm Module 4: Establishing the baseline: Auditing; operational assessment; and benchmarking. 03:15 pm Module 5: Funding EE & RE through the value chain 04:00 pm Module 6: Downstream marketing of EE & RE; Strategies and Case Study Examples 04:45 pm Feedback form / Partnership form 05:15 pm Certificate distribution 05:30 pm Photo-session and Conclusion 5
Training : EE & RE Awareness Raising Training for TopManagers• Business case for EE and RE projects in industry• Best practices for developing an enabling environment for project development• Convincing industry top management on potential savings generated by EE and RE implementation• Aimed at better understanding and conviction about the benefits of EE & RE• Facilitating the participation of technical managers and professionals to attend other training in the series: • Energy saving in industry • EnMS Implementation • Certified Energy Manager • Energy System Optimisation 6
Your TrainerGerard Doherty, C.Eng.• UNIDO International Expert in Energy Efficiency and Energy Management• Certified Professional in Energy Management• Certified Measurement and Verification Professional 7
What about you?• Name• Company• Role in the company 8
Module 1Introduction to Enterprise Energy Management: Strategic business drivers and barriers 9
Drivers of Renewable Energy and Sustainabilityin Industry• Climate change & pollution – 50% chance of +4C by 2100• Consumer demand, marketing & corporate responsibility• Supply chain demand from global brands • Sustainable Apparel Coalition & Higg Index • Marks & Spencer Plan A • IKEA – 20% EE Improvement Target for suppliers by 2020 • Walmart measuring supplier factory energy efficiency• Energy security, rising cost of energy and carbon pricing• Decreasing cost of RE• Government support, feed-in tariffs and national production capacity – Pakistan vision 2025• Favorable trend towards investments in renewable energy 10
Key Benefits of Energy Management in Industry• Cost savings through reduced energy consumption is often achieved without capital investment through good practice, improved operational control & maintenance, employee awareness• Indirect benefits often exceed the energy savings: • Improved maintenance and reliability • Improved quality and health & safety • Reduced material waste • Improved corporate image and feelgood factor for employees • Better energy supply contracts 11
Greater savings through formal Energy Management 12
Energy Management BarriersWithout a clear energy strategy in place, opportunities for energyefficiency improvement may be known but not implemented due tobarriers including:• EE & RE projects are seen as high investment cost with long payback• Lack of access to capital for EE & RE technologies• Different priorities for investment – core business receives focus• Perceived risk to production• Cost of identifying EE measures• Limited availability or knowledge of EE products in local market 13
Energy Management Barriers• Lack of awareness of opportunities• Lack of accountability on energy consumption – energy bills are accepted as inevitable• Lack of trained workforce to install, operate, maintain EE & RE technologies – risk of malfunction• Lack of MEPS and labelling• Lack of trained experts – auditors, energy managers, energy management consultants• Lack of competent ESCOS for energy management 14
Energy Management Barriers :WorkshopWhat would be typical barriers thatyou encounter in implementingenergy management?LearningBy Doing 15 minutes (closed books) 15
Energy Management:Helping Lower Barriers in EE & RE InvestmentsFirst: Develop energy projects with the strategic business context in mind!Financial barriers will decrease as linkages increase.• With formal EnMS, energy is seen as a more strategic operational instrument – this helps transcend many of the common barriers to energy efficiency, such as financial viability and the perceived technical risks of energy efficiency projects.• Documenting and quantifying energy use, operational drivers, energy saving opportunities, and potential cost savings in accordance with the standardized methodology provided by an EnMS can help banks to better assess the risks and returns of these projects. 16
Establish an EnMS as a First Step towards EEimprovement• Implementing an energy management system is an important 1st step in identifying and prioritizing the full range of energy efficiency opportunities in advance of capital investment.• Implementing an EnMS often has the potential to achieve considerable energy savings through operational change alone rather than by installing best-available technologies (BATs)• Any investment in energy efficiency and conservation should be strategic to the overall business and linkages to non energy benefits clearly explored 17
Prioritizing Energy Investments:The Energy PyramidHigh investment, RenewableLower return on energy investment Time of use management $Low investment, Energy efficiency High return on 18 Energy conservation investment Energy analysis & baselining
Module 2Introduction to standards based energy management systems: ISO 50001. 19
What is ISO50001?• Management systems all based on PDCA – Plan Do Check Act• ISO is the International Standards Organisation which develops standardised approaches to common problems developed by international experts from many countries• Have developed 9001 Quality, 14001 Environmental, 18001 Health and Safety• 50001 published in 2011• Over 20,000 companies certified (end 2016) 20
Ad hoc approach to energy management… Costs high Costs high again: Where’s that last audit? = Audit Waste cutting, some investment Costs Here we go again! +5% 0 Under control.-5%-10% Years 5-15%-20%-25% 0 21
Structured Approach Senior management commit to programme Costs Initial savings +5% sustained 0-5% Housekeeping first – then-10% investment-15% Becomes company-20% culture-25% Investment 0 Years 3 22
3 Elements to systematic Energy ManagementOrganisational Balance all 3 for the optimum outcome Management commitment,resources, planning Technical PeopleUnderstanding Develop an your energy energyusage and how efficiency to control it culture 23
Savings due to formal EnMS• Egyptian Steel Company – saved 1.6% of total energy consumption within 6 months with minimal capital investment• Egyptian Petrochemical Company – saved 3% of total energy consumption within 6 months with no capital investment• Iranian Petrochemical Company – saved 2% electricity and 8% natural gas within the first year through improved operational control• Turkish packaging company saved 4.5% of electricity consumption in year 1 with low/no cost measures• Turkish textile company saved 5.5% of total energy consumption in year 1 with low/no cost measures• Volvo construction equipment saved 25% electricity – 20.1 GWh, $2m - through reducing idle electricity consumption 24
Enterprise Energy Management :WorkshopLearning What does energy management meanBy Doing to you? What is the interest for your organization in doing energy efficiency? What can trigger the interest of your organization's management toward energy efficiency projects ? 10 minutes exercise 25
Module 3Establishing the EnMS: Process, policy, resourcing and continuous improvement 26
5 Steps to EnMS & ISO50001• Step 1 – Management Commitment• Step 2 – Plan• Step 3 – Do• Step 4 – Check• Step 5 - Act 27
Step 1 – Management CommitmentTop Level Management• Develop, publish and promote Energy Policy – stating senior management commitment to managing energy• Provide resources needed to improve energy performance – mainly human resources but also capital where it makes business sense• Identify scope and boundaries of EnMS (what will we manage?)• Appoint Management Representative• Monitor progress regularly to ensure targets are achieved – make adjustments if necessary• Conduct management review of energy management system 28
Human Resource Requirements – Example energyteam Management Representative Energy ManagerProduction Quality Maintenance Environmental Finance Manager Manager Manager Manager 29
Step 2 - PLAN• Analyse Energy consumption and establish Baseline • How much energy do we consume and at what cost? • Consumption and cost trends – past, present and future • What drives energy consumption up & down? • Develop Energy Performance Indicators (EnPIs) • What are the Significant Energy Uses (SEUs)• For SEUs: • Identify critical operational and maintenance parameters • Identify critical people • Identify Opportunities for Improvement • Set Objectives, Targets and Action Plans for performance improvement 30
PLAN 31
Objectives, Targets and Action PlansObjectives Targets Action Plans• Longer term – • Specific • What? maybe 5 years • Measurable • Who? • Achievable • When?• Specific • Relevant • Is it complete?• Consistent with • Time Based • Was it • Support the the Policy successful? objectives 32
Step 3 - DO• Implement Awareness & Behavioural Change initiatives• Implement Training Plans focussed on SEUs• Develop necessary Documentation – Procedures & Records• Implement Action Plans• Monitor Progress via EnPIs• Address any Legal compliance issues relating to Energy• Consider Energy Efficiency in Capital Investment decisions - new processes, buildings etc.• Consider Energy Efficiency in Procurement decisions for all equipment & services affecting energy consumption 33
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Step 4 - CHECK• Are we doing what we said we would do? • Check implementation of action plans, training plans etc.• Does it comply with the standard? • Check for non conformances against ISO50001• Is it working? • Are action plans delivering the planned savings • Do EnPIs are showing improvement• Carry out formal Management Review 35
Step 5 - ACT• As per results of checking phase – correct what’s wrong – prevent it happening in the future• Continual improvement – develop new action plans and targets, identify new opportunities 36
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Establishing the EnMS:Exercise What challenges do you perceive in implementing an energy management system?LearningBy Doing 38
Lunch13:30 – 14:30 39
Module 4Establishing the baseline: Auditing; operational assessment; energy monitoring and benchmarking. 40
Establishing the baseline (part of PLAN phase)• To manage energy consumption we need to measure whether we are improving or not – for this we need a reference point i.e. the Baseline• How much energy are we now consuming? Where is it being consumed?• What drives consumption up or down? (External & internal drivers)• What are the energy consumption trends?• How do we compare with other similar facilities? (Benchmarking)• What is the scope for improvement?• Where are the opportunities for improvement?This requires an Energy Audit 41
Types and Uses of Energy Audits Advanced Feasibility Study / Large Facility / Complex Energy Sub-System (ISO 50002 -Level 3 Energy Audit) Measurement & Verification (M&V) of Savings Detailed Feasibility Study / Complex Facility (ISO 50002 - Level 2 Energy Audit) Pre-Feasibility Study / Simple Facility (ISO 50002 -Level 1 Energy Audit)Source: Adapted from Natural Resources Canada,2005, Retscreen Clean Energy Project Analysis Textbook 42
Energy Auditing – in house or outsource?• This depends on a number of factors: • Level of in house expertise • Availability of audit equipment • Audit level – 1,2 or 3• Certain aspects of auditing can be carried out in house with limited spend on equipment • Analysis of energy meter data ($0) • Lighting audit with lux meter ($500) • Air leak/steam leak audit with ultrasonic meter ($1k) • Thermal leak detection with infra red camera ($1k)• In most cases detailed audits will require external assistance• EU cost $3-10k depending on size of factory and level of detail 43
Collect Utility and sub meter dataAnalyse past, present and future energy use Quantify Significiant Energy Users (SEUs) Identify drivers of site and SEU energy consumption Develop baselines and performance indicators (EnPIs) for site and SEUs Identify opportunities for improvement, prioritise and prepare action plans Implement Action Plans. Monitor performance against baselines 44
Identifying opportunities (PLAN) Management• Analyze process, material & energy flows Operations &• Use ‘Energy Onion’ diagram Maintenance• Optimize operation with operators Control• Identify recommendations to improve Equipment productivity, reduce energy & material use Process• Highlight Non Energy Benefits: Energy • Production reliability & efficiency Service • Quality, Health & Safety • Environmental compliance 45 • Emissions • Water treatment • Waste
Selecting the best opportunities (PLAN) • It is vital to prioritise the opportunities in order to pick the ones that make most business sense for the company • Low hanging fruit and quick wins first 46
Monitoring & Targeting (part of CHECK phase)• For good energy management it is essential to monitor energy consumption versus the baseline on an ongoing basis• This will highlight when something goes wrong so that it can be corrected, and when something goes right so that it can be replicated• Systems lose efficiency over time due to personnel and production changes if energy efficiency is not integrated into management practices• Data analysis can be done using no/low cost tools such as Excel, Retscreen, or with commercially available Energy Management Information Systems which take data from meters and analyse data to prepare reports• It is vital that relevant staff know how to use the energy monitoring software to analyse consumption 47
Industrial Benchmarking• As well as measuring performance against the baseline, it is important to be aware of energy performance versus competitors/industry benchmarks• Benchmarking can be challenging due to: • Information is often sensitive / proprietary • Integration of processes / difficult to draw boundary • Values are often regional specific • Lack of comparable metrics • In most industries Specific Energy Consumption falls as output rises – we may not be comparing like with like 48
Exercise Identify the variables affecting energy consumption in your organisation: - pick your top three sector indicators Learning By Doing 49
Module 5Funding EE & RE through the value chain 50
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