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Pathways to Energy Management Programmes – Gaining through Saving, Amelie Goldberg
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Industrial Productivity I N S T I T U T E F O R
Sharing best practices for low carbon enterprises w iipnetwork.orge info@iipnetwork.org
Pathways to Energy Management Programmes -‐ Gaining through Saving
IPEEC pre-‐sessional workshop EE Global, Orlando, FL Amélie Goldberg March 27, 2012
PresentaFon overview
• About IIP • IIP’s relevant research • The IEA-‐IIP Policy Pathway • Energy Management Programmes (EnMPs) • Importance of drivers & implementaFon support • The Policy Pathway: 10 steps to delivering EnMPs • EnMS in the Supply Chain • Key messages and Future Pathways
IIP at a glance…
The IIP team and Strategic Advisory Group • Sharing and disseminaFng best pracFces,
including bridging the gap between government policy and industry implementaFon
• PiloFng scalable projects for GHG miFgaFon
• FacilitaFng the creaFon of innovaFve financial mechanisms
The Ins(tute for Industrial Produc(vity provides
companies and governments with the best energy
efficiency prac(ces to reduce energy costs and
prepare for a low carbon future.
IIP’s Relevant Research
2. Policy Pathway – IEA & IIP Partnership – Policy Pathways designed to help implement
IEA’s 25 Energy Efficiency RecommendaFons – Case studies of good pracFce, involvement of
internaFonal experts – Expert Workshop 30 September 2011 – Publica3on April 2012
1. Promo(ng EnMS through Programmes, Incen(ves and Support – Experiences Denmark, Sweden and Ireland – Lessons learnt and technical assistance for EnMP implementaFon in China
3. Supply Chain Ini(a(ves for Industry (forthcoming) – Promising method of sFmulaFng energy management in industry – Challenges and opportuniFes
Decision-‐makers Ma]er!
Financial Director “Do we have the money to invest and are we willing to spend it on
EE?” Driver: Financials
Chief Technology Officer “Do we know what energy efficiency
practices and technologies are available?”
Driver: knowledge
CEO “Are we committed to prioritize EE
above other investments?” Driver: Commitment
Marketing Director “Do the public and market demand
us taking EE measures?” Driver: Public and market
demand
Regulatory Affairs Officer “Does this government policy
require us to take EE measures?” Driver: Policy obligation
Need to make a compelling business case to the board Produc(vity gains “sell”
Source: Ecofys in Reinaud and Goldberg, 2011
Co-‐benefits -‐ a significant driver for companies
• Co-‐benefits o_en exceed the value of energy savings • Including co-‐benefits reduces payback Fmes for investments
Examples: • Value of non-‐energy benefits (NEBs) equal to about 2.5 (mes the
projected energy savings for the installed measures (Hall & Roth, 2003)
• Inclusion of quanFfied co-‐benefits in an energy-‐conservaFon supply curve for the US iron and steel industry doubled the poten(al for cost-‐effec(ve savings (Worrell et al. 2001 & 2003)
• An iniFal cost of $5000 in consulFng fees for purchasing a three-‐fan, variable inlet valve controlled system, created a potenFal incremental
annual revenue $375 000 for Alcoa.
Policy Pathway Overview
• What: DefiniFons
• Why: Importance of managing energy in industry
• Role of energy management programmes
• How to design and deliver energy management programmes
Energy Management Programmes -‐ DefiniFons
Drivers & IncenFves
Support
Energy Management
Systems
• Target-‐sehng policy • Mandatory EnMS • Policy exempFons • Subsidies / Tax rebates • Public reporFng • External RecogniFon
• Networking • Workshops • Direct technical assistance • Tools, training
• Standard or specificaFon • EnMS incl. Energy review guidelines • CerFficaFon or verificaFon
Link to policy package
Why Energy Management?
=> Save Energy and Realise Co-‐Benefits
Why EnMS? • Overcome a range of barriers to energy efficiency • Measurement of baseline energy use, energy reviews, KPIs, etc. • ConFnuous idenFficaFon of energy saving opportuniFes & implementaFon • Involvement of top management and staff
Why EnMPs? • Energy saving acFons in industry are relaFvely cost effecFve • EnMPs can be linked to and support policy objecFves e.g., energy security • Isolated adopFon of EnMS may lead to varying degrees of quality and durability,
and low up-‐take • Overcome company barriers to the implementaFon of EnMSs, and provide
guidance and support for the implementaFon process
“EnMS +”: ImplementaFon Mechanisms
• Energy review, benchmarking and technical tools assist in idenFfying EE opportuniFes, defining targets and key performance indicators (KPIs) within their EnMS. • Some may be complementary requirements
• Direct programme and/or technical assistance • Case studies showing peer experience • Guidance materials • Workshops, networks and other fora for best pracFce
exchange
• EnMS is the cornerstone of an EnMP, but other EnMP components are necessary to achieve energy savings…
Country example: Sweden
Drivers & IncenFves
Support
Energy Management
Systems
• Rebate from carbon tax • External recogniFon (case studies)
• Manuals on energy reviews, LCC and procurement
• Networking and workshops • Direct technical assistance
• EN 16001 (transiFon to ISO 50001) standard
• EnMS CerFficaFon
voluntary PFE
agreement
Country example: Australia
Drivers & IncenFves
Support
Energy Management
Systems
• EEO is mandatory • Public and government reporFng • External recogniFon (case studies)
• Industry Guidelines • Industry Support Officers • Annual workshops
• Assessment Framework (EnMS specificaFon)
• Government verificaFon
Energy Efficiency
OpportuniFes
EnMS in the Supply Chain
What is the role of EnMS in supply chain ini(a(ves?
• Successful examples of large buyers/retailers engaging their manufacturing base in energy or GHG saving acFviFes, e.g.: • Ikea audits and capacity building with its manufacturing suppliers
(partnership with WWF Climate PosiFve OpportuniFes for Suppliers) • Ford and SKF require suppliers to be ISO 14001 cerFfied
• IIP Database on Supply Chain IniFaFves for Industry (April) • ISO 50001 – an internaFonally recognised a framework for organisaFons to encourage suppliers to be]er manage energy
Key Messages and Future Pathways
• EnMS is a tool to change behavior, processes, technologies
• EnMS can enable significant co-‐benefits to be uncovered • Need to speak the same language as C-‐level to encourage uptake • Communicate benefits and costs for companies
• Need EnMS +
• Government policy, such as EnMPs, and enabling finance, can have a key role in promoFng EnMS
• EnMS has a role to play in corporate Supply Chain Ini(a(ves • What role for government agencies in promoFng SCI?
Industrial Productivity I N S T I T U T E F O R
Sharing best practices for low carbon enterprises w iipnetwork.orge info@iipnetwork.org
Thank you! IIP Amelie.goldberg@iipnetwork.org Julia.reinaud@iipnetwork.org
IEA Vida.Rozite@iea.org Lisa.Ryan@iea.org Jungwook.Park@iea.org
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