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Energy-Efficiency Market Development The Perspective From China Yonghao Luo Shanghai Jiaotong University Visiting Scholar, Battelle Memorial Institute.

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Presentation on theme: "Energy-Efficiency Market Development The Perspective From China Yonghao Luo Shanghai Jiaotong University Visiting Scholar, Battelle Memorial Institute."— Presentation transcript:

1 Energy-Efficiency Market Development The Perspective From China Yonghao Luo Shanghai Jiaotong University Visiting Scholar, Battelle Memorial Institute Earth Technologies Forum March 25-27, 2002 Washington, DC

2 Outline Potential for Energy Efficiency Obstacles and Opportunities Proposed Solution to Develop Market

3 Potential for Energy Efficiency in China

4 Chinas Building Sector Energy Consumption 25% of total energy Housing Sector 15% annual growth rate Commercial Building explosive growth in tall buildings Shanghai Pudong

5 Building Sector Reform Yangtse River Borderline northern houses are heated (subsidized) resistance to change Southern Building Envelope thermal resistance is low inside temperature condition: cold in the winter, 0~ -5 ºC hot in the summer, 32~35ºC Air Conditioning in the South very popular now, large energy loss

6 Potential for Energy Conservation in Chinas Commercial Buildings Energy Consumption is Much Higher than International Norms 188 kwh/m 2 a in Beijing 135 kwh/m 2 a in Japan Big Difference among Similar Buildings energy audits for 16 luxury hotels in Beijing highest energy consumption intensity is three times the lowest Big Difference between Reality and Potential bad management, lack of automatic systems, and design failures

7 Commercial Building Big Differences among Similar Buildings Source: Tsinghua Tongfang Human Environment Engineering Company

8 Commercial Buildings Economic Analysis of Different Improvements InvestmentReturnReturn Time Management$ 1$ 10~201~2 months Replace Fans and Pumps$ 1$ 0.8~1.01~1.2 years Add Automatic Control Systems$ 1$ 0.3~0.52~3 years Retrofit Whole Systems$ 1$ 0.2~0.43~5 years Retrofit Construction Material$ 1$ 0.1~0.25~10 years Source: Tsinghua Tongfang Human Environment Engineering Company

9 Coal-Fired Industrial Boilers About 600,000 Industrial Boilers in China Use 1/3 of Chinas Total Coal Output Thermal Efficiency Averages Less than 70% Potential to Improve Efficiency by 15-20% in Many Boilers Reasons Design failure in furnace arches Too much excess air High stack temperature Outdated control system Our team at Jiaotong has successfully renovated over 200 of these boilers at low cost

10 Industrial Boiler Case Studies (Using Double Herringbone Furnace Arches) A Stoker Boiler in a Paper Mill after retrofitting furnace arches and duct system steam capacity increases from 28t/h to 38t/h can burn cheap, local coal saves about 200,000 RMB per month, 1 month ROI A Stoker Boiler in a Shipbuilding Company after retrofitting furnace arches thermal efficiency increases from 69.3% to 77.6% coal saving 2925 t/a; CO 2 reduction 5639 t/a 6 month ROI

11 Inefficient Steam Systems no condensate return hot water wasted A Chemical Plant Case saves 175 t / day of steam from hot water recovery saves 20~30 t / day of steam from condensate recovery produces 750kW electricity from the pressure drop One year ROI

12 Obstacles and Opportunities

13 Obstacles Changing Legal and Market Conditions (Transition to Market Economy) Difficulty in Finding Suitable Partners (Transparency) Financing (ESCO) Different Cultural Background Opportunities WTO Entry Requires Change to International Norms Strong Government Dedication to Develop Economy More Frequent Bilateral Exchanges

14 Proposed Solution to Develop Market

15 A Platform to Promote Energy Efficiency in China Center and ESCO are combined to form a platform Center is keystone to establish leverage

16 Relationship between Center, ESCO and Financing

17 Herringbone arch can save at least 5% energy, less than 1/2 year ROI It can open the door with clients for further projects Strategy to Develop Market with Proprietary Technology

18 model technology for market pioneer establish model sector by integrating technologies select cities to establish new mechanism for energy saving Strategy to Develop Market with Models

19 Examples and Suggestions

20 My Grandfathers Story bean oil lampkerosene lamp Mobil Co. Distributed Kerosene Lamp for free to Open the Kerosene Market in China

21 My Sisters Story increase in rural housessolar hot water system Changes in China often occur in mass shifts

22 Room Renovations Combine EE with Style to Sweep the Market

23 Dr. Yonghao Luo Shanghai Jiao Tong University Visiting Scholar at Pacific Northwest National Laboratory (Battelle) until 26 April 2002

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