energy efficiency potential in the wisconsin industrial sector a discussion with the wisconsin...
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Energy Efficiency Potentialin the Wisconsin Industrial Sector
A Discussion With theWisconsin Industrial Energy Group
November 6, 2008
Wisconsin Energy Efficiency Potential Study
The Energy Center is preparing the study. It will serve as one of the inputs to the PSC’s decision process as to recommendations for future funding levels for the Focus on Energy Program.
The PSC is especially interested in innovation, including new technologies and program approaches.
Our initial estimates are due to the PSC in late December 2008.
We are taking stakeholder input both from customers who have participated in energy efficiency programs and from those that have not.
This meeting provides an opportunity for large industrial customers to have input to the process.
U.S. Industrial Electricity Use1949 - 2007
Source: U.S. Energy Information Adminstration
100,000,000
1,000,000,000
10,000,000,000
1949
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Year
MW
h (
log
sca
le)
1973 oil embargopre-oil embargo trend projection
7% annual growth
post-oil embargo actual consumption1% annual growth
Annual Rate of Change in U.S. Industrial ProductionSource: Economic Report of the President
0%
1%
2%
3%
4%
5%
6%
Pre Oil Embargo Post Oil Embargo
Period
Ye
ar-
to-Y
ea
r C
ha
ng
e
Projected Annual Rate of Change in Value of Shipments2008 - 2030
Source: U.S. Energy Information Administration
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Energy Intensive Industries Non-Energy Intensive Industries
Industry Type
Ye
ar-
to-Y
ea
r C
ha
ng
e
Utility Infrastructure InvestmentSource: Edison Electric Institute
Electric companies are estimated to spend $14 billion per year on average over the next 10 years on distribution investment.
From 2000 to 2006, electric companies invested more than $37.8 billion in the nation’s transmission system. Electric companies are planning to spend an additional $37 billion from 2007 to 2010.
According to EIA, 258 gigawatts (GW) of new generating capacity will be needed by 2030 to meet the growing demand for electricity, at a cost of approximately $412 billion (in 2005 dollars). This is equivalent to approximately 250-500 new baseload power plants (rated between ½ GW and 1 GW each).
McKinsey Study on theCost of Carbon Reductions
These reductions would involve pursuing a wide variety of abatement options at marginal costs less than $50 per ton, with the average net cost to the economy being far lower if the nation can capture sizeable gains from energy efficiency…Given the timing of investments relative to savings, the economy might well encounter periods of significant visible costs, with the costs and benefits shared unequally among stakeholders.
Source: McKinsey & Co, Reducing Greenhouse Gas Emissions: How Much at What Cost?, 2007.
Midwest Industrial Energy Intensity
Wisconsin Industrial Energy Intensity (2000-2006)
6.76.86.9
77.17.27.37.47.5
2000
2001
2002
2003
2004
2005
2006In
du
stri
al E
ner
gy
Use
(m
illio
n B
tu)
per
$1
000
Man
ufa
ctu
rin
g V
alu
e A
dd
ed
Wisconsin Industrial Energy Intensity
Wisconsin Industrial Energy Intensity (1970-2005)
02468
1012
1970
1975
1980
1985
1990
1995
2000
2005
U.S. DOE Industrial Assessment Center: Wisconsin Assessments (2000-2008)
152 assessments completed
Savings from implemented projects
Electric savings of 18 million kWh/year
Demand savings of 44,000 kW-months/year
Natural gas savings of 75,000 MMBtu/year
Total cost savings of $2.7 million/year
IAC Projects in Wisconsin
Electric Savings from Implemented Measures: 18 Million kWh/Year (2000-2008)
Equipment controls, 6%
Motors, 16%Air compressors,
17%
Heat recovery, 0%Lighting, 61%
IAC Projects in Wisconsin
Annual Electric Demand Reduction from Implemented Measures: 44,000 kW-months/year (2000-2008)
Lighting, 53%
Equipment controls, 2%
Air compressors, 19%
Other, 17%
Motors, 9%
IAC Projects in Wisconsin
Gas Savings from Implemented Measures: 75,000 MMBtu/year (2000-2008)
Other29%
Equipment controls1%
Building envelope3%
Boiler O&M11%
Furnace/oven O&M6%
Heat recovery16%
Space conditioning27%
Steam systems7%
Focus on Energy Industrial Program
Contact Information
Steve KihmSenior Project ManagerEnergy Center of [email protected](608) 238-8276, ext. 131