industrial energy efficiency project - sa overview of phase i outcomes alfred hartzenburg 21 july...
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Industrial Energy Efficiency Project - SA
Overview of Phase I Outcomes
Alfred Hartzenburg
21 July 2015
2
Planned activities
IEE – A Global Programme
Operational
South AfricaMoldovaRussiaTurkeyEcuadorMalaysiaThailandViet NamIndia
PhilippinesEgyptIndonesiaIranUkraineColombiaMacedoniaMyanmar
Operational in 17 countries Planned activities in 10 countries
Other donors Swiss State Secretariat for Economic Affairs UK Department for International Development Government of South Africa Government of Italy
Training Statistics
>210 Training workshops conducted
>3 000 Engineers, technicians and managers trained
119 National Experts 46 National Trainers29 ISO 50001 Lead
Auditors
Industry EngagementParticipating Large Companies 153
SME Energy Assessments Conducted 231
Companies Reporting Savings 41
Host Training Companies 22
Candidate Companies 90
Demonstration Plants 77
Case studies developed 32* Some of the 54 Actively Reporting Companies has signed to be Demo Plant for more than 1 Discipline
Industry Engagement
Demonstration Projects
77 20%
Case Studies Developed
32 8%
SME Energy Audit Trends
Implementation Savings Reported
Actual Savings
EnMS / ESO Implementation Savings Achieved
System kWh CO2 (tonnes) Rand Value EnMS 901 098 244 857 336 889 608 205
ESO 440 524 889 394 132 237 538 706
Total 1 341 623 133 1 251 468 1 127 146 911
(Payback Period less than 2 years)
Project Outputs AchievementsEnMP benchmarking assessment/study (national and international). Not Achieved
Formulation of 2nd review of NEES Completed June 2012
Industrial Sector Consultation workshop on EnMP. Not Achieved
Adequate numbers of institutions and personnnel accreditated for verification of compliance
29 ISO 50001 Lead Auditors Qualified
Advanced (40) and Expert (41) and Vendor (2) Level EnMS and ESO Training courses conducted (cumulative). Total trained perons - est 2,000 (cumulative). Establish 3 TRC's.
i. >210 Workshops ii. < 3000 Persons trained iii. 119 Experts qualified iv. 46 National trainers v. 1 (PTA) established and 1 (DBN) under development.
i. 205 energy audits completedii. 17 enterprises implement EnMSiii. 8 enterprises implement ESO
i. 231 energy audits completedii. 49 enterprises implemented EnMSiii. 58 enterprises implemented ESO
25 case studies documented and widely circulated i. 32 Case studies documented and ii. 29 Case studies in progress
Direct Energy Savings - 500 GWh 1 341 GWh savedDirect CO2e Savings - 478 500 tonnes 1 251 tonnes CO2e saved
Performance Summary
Implementation Drivers
ECM Implementation Drivers R² P-Value Significance FSize (%) annual electricity tariff Increase 0.9920 0.0040 0.0040
No of Companies implementing ECM's 0.9005 0.0511 0.0511
Electricity tariffs 0.8930 0.0550 0.0550
Cooling Degree Days 0.7473 0.1356 0.1356
Heating Degree Days 0.7345 0.1430 0.1430
IEE Project Team Size 0.6093 0.2194 0.2194
No of training workshops 0.5049 0.2895 0.2895
Implementation Reality
Management Commitment
Familiarity with
principles of EnM
Familiarity with ISO
Management Systems eg.
9000 & 14000
Other stakeholder interest and
support
Accelerants to Implementation
Required
ImplementationAid
Behavioural Economics
Sub-metering pays dividends when verifying the performance of energy conservation measures (esp for bottom-up sanity checks)
Develop a strong measurement plan to verify results and see that it gets implemented
Energy savings from operational improvements are not permanent. Savings when plants are down evaporate when plants get busy.
Reflections
Winning Culture and Environment• Demonstrable and visible top management
commitment
• An ISO / WCM environment promotes a culture conducive to sustainability
• After exhausting no cost improvements a willingness to spend in order to save
• Plant stability and reliability
• Allocation of resources
Sustainability Failure
• Energy cost proportionately low
• Limited resource allocation
• Low level of operator awareness and interest
• Top management unaware and / or disinterested in energy team achievements and challenges
• Competing and disruptive reporting priorities
• Savings not sustained
Sustainability Failure
”…energy efficiency initiatives that are not monitored and maintained typically have a six-month half-life of their benefits. That is, they lose half of their economic benefits every six months if left largely untouched.” Emerson’s James Beall, a principal process control consultant who helps manufacturers optimize their processes
The world’s leading sustainability consultancy
Results of SA IEE Project interventions
18
Solomon Coatings: The company implemented the IEE Project SME energy assessment findings which turned the company back to profitability. The company saved around R 6,500 per month over a period 10 months in electricity costs with a resultant increase in production output of 40%.
Sockit Manufacturing: The IEE Project identified four energy system optimisation opportunities and a fuel switch, all of which the Company implemented. The Company installed a paraffin boiler which allowed it to increased its machine pool by 30% .
Willard Batteries: By implementing an EnMs, supported by the IEE Project, the Plant has saved over R 3 million between 2012 and 2013. As a result of the energy savings the Plant has been expanded with 20% in production capacity.
Mittal Saldanha: The IEE Project has directly assisted Mittal Saldanha to improve its energy efficiency and reduce production costs. It has facilitated the company saving approximately R 89 million n 2011 in energy costs, helping them to remain in business.SA IEE Project Outcomes
Direct Jobs retainedDirect Jobs created
Total Direct Jobs
1 23741
200
66416
0
5 20 482 1 237
SA IEE Project Outcomes SA IEE Project Outcomes SA IEE Project Outcomes
*Outcomes largely attributed to the IEE Project’s interventions, but acknowledging that other variables would have influenced the outcomes to varying degrees across the study sites.
Tot Direct Jobs retained = 1654Tot Direct Jobs created= 90Overall Direct Jobs = 1744
The world’s leading sustainability consultancy
Mapping Disposable Income*
19
Disposable EarningsR 0.25 mill
Disposable Earnings R 0.7 mill
48%
75%
Disposable Earnings
R 64.6 mill
Sockit ManufacturingWillard Batteries
1
2
R 5 mill
$
Disposable annual income earned by workers (IEE direct employment) living in the local community (excluding bonuses and overtime and after deductions and tax)
Arcelor Mittal Steel Saldanha Works
Solomon Coatings
1
2
R 42 000
R 90 000
Income retained p.a. in local community to generate further economic activity
Disposable Earnings
R 206.3 mill
$72%
Percentage earnings within local community
R 25 mill
*Calculations in this slide are based on IEE Direct Local Employment = jobs crated/retained as a direct consequence of the IEE Project interventions.
• Project Funders: dti, DoE, Seco, UKAid• Implementing Agent: UNIDO• Project Host: CSIR• Project Custodian: NCPC-SA • Skills Development: Wynand Van Der Merwe, Sybil
Rowles, Phyllis Manamela• Marketing & Comms: Julie Wells, Fatimah Boltman,
Constance Mokhoantle• IEEP Project Team: Faith Mkhacwa, Sashay
Ramdharee, Milisha Pillay, Ngoanathari Maja, Bianca Latchman, Ajay Trikam, Brent Goliath, Adrian Rudolph, Phumla Makae
Acknowledgements
• IEEP Phase II• National Energy Act 2008: Energy reporting• National Energy Strategy• Carbon Tax• ISO 50002, 50002, 50006, 15015• Reliable Power Supply• …
Key Milestones & Challenges