Marco Aurélio Moreira - EletrobrasRodrigo Garcia - CNI

Energy Efficiency and Large Industry:

History, Current Scenario and Perspectives

Partnership CNI and Eletrobras/Procel: Results

• History of Energy Efficiency Actions• Results• Efficiency Potential

Energy Efficiency and Competitiveness

• Energy Cost and Industrial Competitiveness• Environmental Context

Perspectives

• Energy Efficiency in PDE 2020• Proposals of Industry

Scope of Presentation

Partnership CNI and Eletrobras/Procel

Initial Challenge (2007):

National Experience

PEE/Aneel – Electrical Distribution Companies Low Priority to attend Industries; Law 12.212/2010: 60% of resources for low – income

consumers.

Financing: Proesco/BNDES and Sectorial Funds Operations are below expectations

Priority of Industry in the current government programs Inmetro (labeling and seal): residential sector; Conpet: small activity in the industry; Procel: Procel Indústria.

Procel Indústria

MAIN RESULTS UNTIL 2010:

• LABS implemented: 14 (LAMOTRIZ Network)

• Multipliers trained: 380

• Agents trained: 3160

• Industries participants: 780

• Technical publications: 28 (Technical guidance and

handbooks)

• Studying energy conservation potential in 14

subsectors of Industry

• Partnership with Paper and Pulp Sector

• Partnership with SEBRAE-RJ

• Energy Savings: 4 GWh/year

Resultados até 2010

217 industrial projects

Investment: US$ 100 million; Economy: 626 GWh;Avoided Demand: 87 MW; Average Cost: 49US$/MWh

• 14 sectors of large energy consumption;• Main energy uses in industry are considered;• Technical Potential = current consumption – ideal situation

Energy Use Economy Potential

Furnaces 62,12 % of energy efficiency opportunities

Boilers 16,09 % of energy efficiency opportunities

Motor Driven Systems 13,87 % of energy efficiency opportunities

Opportunities of energy efficiency in industry

63 programs - 12 countries + European Union

94% - energy efficiency related to environmental benefits;

82% - have financial or tributary encourage;

62% - voluntary programs;

62% - promote equipment substitution and industrial process changes;

54% - make available technical information;

Investment in R&D+I;

Almost every programs promote partnership between industry and

government;

ISO 50001: Energy Management System.

International Experiences: Successful Programs

General Uses (7): automation and equipment;

Steel Industry (16): integrated plants;

Chemical (9): fertilizers;

Non-ferrous Metal(4): aluminum;

Cement (7);

Paper and Pulp (10): integrated and packaging;

Ceramics (19): covering and tiles;

Foods and Beverages (6): biofuels.

New Technologies for Industrial Processes

Guidebook containing all the steps for a CDM process

Opportunities with the programmatic CDM

Approved methodologies

Current cases

Contractual aspects

Financial sources

GENERAL STUDIES

PROCEL INFO

NEW PARADIGM – JUST DO IT MUCH BETTER

“We can't solve problems by using the same kind of thinking we used when we created them.”

Quotation of Albert Einstein

NEW PARADIGM

Economic variables 03 technologies widely used in the industry Average growth (FMI): World (~4,2%); Brazil (5,5%) e China

(~7,0%) Scenario of current technologies - Baseline Natural Insertion of technologies – beginning 2020 – 95% market

– 10 years Encouraged Insertion of technologies – beginning 2015 – 95%

market – 6 years

Incentive Mechanisms Studied Reduction of interest rates: 3,5% to 0,5% per year Increase the period of grace: 3 to 5 years Accelerated depreciation: 10 to 6 years

Paper and Pulp: 2010 - 2030

2010 2030 Difference

Reference BaselineNatural/

EncouragedEncouraged:

Period Benefits

Production 100 240 300 + 43,5 .10³ T

Electric Energy 100 230 180 - 76,8 TJ

Fuels 100 240 170 - 681 TJ

Emissions 100 240 80 - 24 MTCO2

Paper and Pulp: Competitiveness Benefits

The study regards that the natural and encouraged insertion scenarios of technologies achieve the same result, but different accumulated benefits in 2030.

Energy Efficiency and Competitiveness

The energy efficiency actions must encourage the growth of industrial competitiveness

National industry is under pressure:

High cost of electric energy and natural gas;

Tax burden is heavy and national currency valued;

Market loss for imported goods (especially from Asia)

Energy Efficiency and Competitiveness

Fonte: Key World Energy Statistics – 2010 (IEA); tarifas Brasil: Aneel - Inclui impostos

Electric Energy: comparison with world tariffs

Natural gas: evolution and price projection

R$ 695 billions in the GDP

R$ 238 billions in collection

4,6 millions of jobs

R$ 15,7 billions in exports

In economic terms, Brazil WILL LOSE in 2020:

source: www.energiacompetitiva.com.br

Impacts of high electric energy cost in 2020 FGV’s study

Brazil Emissions Distribution

Industrial emissions are little significants, only 10,2% of total!!

23

Renewables

World:13%

Brazil:45,5%

Brazilian Energy Matrix

Brazilian energy matrix is clean!

Energy Supply Matrix – World x Brazil (%)

source: IEA, BEN e MME/SPE

Electric Power Generation Matrix – World x Brazil (%)

Renewables

World18,7%

Brazil87,8%

Electric Power Generation Matrix

Electric power generation matrix is very clean!!

Brazilian Industry is in favor of renewable energy matrix;

Energy Efficiency Industrial Policy needs to promote the increase of the industrial competitiveness;

We need to invest in solutions according to the national industry reality;

Expensive energy = loss of jobs and income + importation of emissions!!!

Industrial agenda: basis for sustainable growth

Perspectives

Source: PDE 2020 (EPE, 2011)

+ 60%

Energy Consumption and Energy Efficiency (103 tep)

Industrial Sector: Energy Efficiency Benefits - 2020

Fonte: PDE 2020 (EPE, 2011)

13,7 Mtep

6,7% of energy demand in 2020

Industry wishes to have more proactive participation in efficiency

energy actions;

Improve and enlarge the dialogue with: Ministry of Mines and Energy (MME) Ministry of Development, Industry and International Commerce

(MDIC) Ministry of Finance (MFazenda) and Ministry of Environment (MMA);

Industrial Energy Efficiency Program must be coherent with energy

and industrial policies;

Compatible resources with expected results;

R&D+I articulation.

Industrial agenda: basis for sustainable growth

United Kingdom embassy partnership;

Context: National Policy on Climate Change – Sectorial Plans;

Opportunity: EE + greenhouse gases reduction;

Pilot:

Energy Intensives industries;

Energy electric reduced burdens x investment commitment.

Proposal in elaboration

Definition of industrial sector priorities: sectors, new

technologies and equipment;

How to promote industry participation?

How to align R&D projects with industrial technologies?

How to monitoring results?

Align national program with states programs.

Partnership Sugestion: Brazil & USA

What do we need to learn?

Thank You!

Marco Aurélio MoreiraEletrobras

+55 21 2514-6476 

marcoam@eletrobras.com

Rodrigo GarciaCNI

+55 61 3317-9436 

rodrigo.garcia@cni.org.br

Paper and Pulp: Competitiveness Gains

Inserir figura do estudo de papel e celulose

Emissões de CO2 do Setor de Celulose e Papel

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BAT e Inovação com incentivos BAT e Inovação sem incentivos Tecnologia atual