1. Energy Efficiency in Industry Show me the Money
By Fabiani Appavou

2. Why is Energy Efficiency an Issue?
Energy Efficiency (EE) - Utilisation of energy in the most cost effective way to carry out an activity or a process whereby waste energy is minimised and overall consumption of primary energy resources reduced
In essence, same or more with less energy
Drivers of Energy Efficiency:
Rising energy prices
Energy Security
Climate Change
Green Jobs

3. Why is Energy Efficiency an Issue?
Source: BP Statistics

4. Why is Energy Efficiency an Issue?
In Industry, 60% of the electricity is usually used by motors.
25% reduction in electricity reduction would save 7% of the world Electricity.
Source: BP Statistics

5. Why is Energy Efficiency an Issue?
Benefits of Energy Efficiency

6. Why is Energy Efficiency an Issue?
Benefits to industries:
Energy savings leads to lower costs and thus increased competitiveness
Reduce environmental impacts => powerful marketing tool for green industries
However !!!!!
Barriers to EE implementation:
Lack of awareness and perceived risks
Conflict of investment priorities
Lack of Benchmarking ( Best Practices)
Absence of Technologies
Regulating pressure

7. The Myths…..
Energy Efficiency is all about ineffectiveness, reduced productivity and reduced comfort
Too costly especially in during an economic downturn
Savings do not outweigh the cost and the risks are quite significant
Consider a company with an energy bill of Rs 60 million/year
With EE measure bringing a 10% energy reductions, the costs will decrease by Rs 6million.
If we are to increase the sales by the same amount, lots of effort in advertising, product design would be needed with
much uncertainty…
If we are to saved energy from this room, one idea would be to switch off the bulbs. For sure, we would be doing savings but we will also be in the dark.
However, we can also just switch to energy efficient bulbs: the room will be illuminated and we will be able to save energy too.
2. The saying is that it is very difficult to find funds to invest in EE , however the reverse is true, we do need the cost savings that EE will bring

8. The Myths….. Some facts: Savings are for real…..
IBM saved $43 million in 2011 due to EE measures ; $400 million since 1990.
IBM is currently the US Greenest company.
In June 2012, company’s profit rose by 6% despite fall in revenues.
Huge Energy savings Potential
Recent study shows that savings up to Rs 1,110 million is possible in Mauritius
Some 200 GWh of electricty can be saved
Energy savings potential up to 20% achievable in some sectors.

9. The Myths…..
IRR of EE Projects over a period of 5 years
Source: UNIDO

10. Heating and cooling processes
The Usual Suspects
Main systems that consume energy in Industry:
HVAC systems
Compressed air system
Heating and cooling processes
Electrical system
Lighting
Motors
Boilers
Refrigeration
Drying
Waste Treatment

11. Approaches to Energy Efficiency
Passive Energy Efficiency
The use of material or devices that use less energy to perform the same function.
E.g. Lighting, high energy efficient motors…
It is termed passive as once implemented it will save energy without any human involvement
Energy savings : 10 – 15 %

12. Approaches to Energy Efficiency
The Rebound Effect
The Positive Utility/Welfare gains from EE can increase energy consumption;

13. Approaches to Energy Efficiency

14. Approaches to Energy Efficiency
Active Energy Efficiency
Intelligent use of energy to achieve the same result with less
E.g. Automation and Regulation to ensure optimal functioning of processes
Energy savings: 5 – 15 %
- Both approaches are needed and complement each other
Active Energy Efficiency is needed so as to maximise and sustain the savings obtained from Passive EE actions
Starting point is however Employee Awareness and Behavioural change
Funny fact, a factory was able to save $30,000 just on labelling switches. Employees were afraid to press the wrong switch and thus did not turn the light off or some activities of the line operation off after working hours.

15. Approaches to Energy Efficiency
Energy Efficiency is not a ONE TIME PROJECT.
It is a CONTINUOUS CYCLE……
And this is a good thing!!!!!
WHY ?
It helps to address the problem gradually that is as finance allows it. Some actions don’t cost money and therefore can be implemented immediately and other delayed.

16. A Continuous Cycle Monitor Realise Evaluate Identify
It helps to address the problem gradually that is as finance allows it. Some actions don’t cost money and therefore can be implemented immediately and other delayed.
Identify

17. A Continuous Cycle Identify
Perform an Energy Audit of the different processes
Understand the energy flows
Identify the low hanging fruits such as leaks, insulation needs, lighting
Evaluate
Understand the energy savings potential and the cost involved
Allow proper planning of investments and priorities
Realise
Usually, the low hanging fruits are addressed first
Some actions don’t even involve any costs and can be implemented immediately
Buildings Management Systems
Lighting Control systems
Motor Control systems
Home Control systems
Monitor
Monitoring is needed to ensure that the measures are effective
Use of management and control systems
Energy savings : 2- 8 %

18. Energy Benchmarking

19. A New Design Mentality Nine Dot Problem
How do you connect all 9 dots arranged in a square with only 4 straight lines?

20. A New Design Mentality

21. A New Design Mentality

22. A New Design Mentality
Geographer’s Solution

23. A New Design Mentality
Origami Solution

24. A New Design Mentality
Redesigning an industrial power loop can reduce power use by up to 92%
Use Bigger Pipes and smaller pumps
Lay the pipes first then the equipments
This cost cheaper than building new pipes
Source: Amory Lovins, RMIT

25. Financing EE improvements: ESCO
ESCO: Energy Service Companies
An ESCO allows a client to upgrade its facilities and reduce energy costs by investing future cash flows from energy savings
ESCO’s are not financial institutions
They perform energy audits, design and install the proper technology to reduce energy use and provide a guaranteed level of savings
ESCO’s get reimbursed together with a profit with energy savings made
2 Approaches:Shared savings and guaranteed savings
Target high energy bills, long hours of operation and good credit ratings
Bernard Jamet, UNEP

26. EE & RE Synergies
Twin Pillars of Sustainable energy: the more efficiently energy services are delivered, the faster renewable energy can be deployed
RE technologies are mostly suited for distributed purposes thereby reducing lost in transmission and transport
Efficient Building designs that utilise passive solar heat and light reduce their energy consumption
Savings from EE improvements can be used to finance RE sources such as PV
The more you reduce the energy demand of an industry, the easier it is to deploy renewable energy within that industry premises
GSR 2012, REN21

27. Concluding Remarks The tourism industry is embracing EE measures
Long Beach hotel has implemented EE equipments but also a building management system
Similar measures are being taken in the textile industry
Denim Ltd have purchased new weaving machine and is implementing various energy efficient practices .
RT Knits has realised a drop of 30% in fuel consumption
Tamak has already achieved a 20% savings on electricty costs and is currently undergoing an energy audits

28. Thank you for your attention
Concluding Remarks
Thank you for your attention
Questions & Comments