Efficiency methodology

Energy Efficiency
Company Energy

Methodology
Energizing Cleaner Production
Management Course

© UNEP 2006 1
 Training Agenda: Company Energy
Efficiency methodology
Efficiency methodology

Introduction to the methodology

Company Energy

Methodology step by step

• Purpose, outputs and tasks
• Company examples
• Worksheets
• Energy focus
© UNEP 2006 2
 Introduction
Efficiency methodology
Company Energy

The “Company Energy Efficiency

Methodology” (Methodology) has been
developed for Asian industrial companies to
help them improve energy efficiency through
Cleaner Production.

© UNEP 2006 3
 Benefits from Energy Efficiency

• Cost reductions through efficient use of energy

Efficiency methodology

• Reduced exposure to fluctuating energy supply

Company Energy

and prices and blackouts

• Increase in productivity and product quality
• Improved reputation with customers and society
through environmental protection
• Improved employee motivation, health and
safety
• Compliance with legislation and ISO 14001
targets

Increased profits and shareholder

value
© UNEP 2006 4
 The Methodology
Efficiency methodology

Is tailored to energy-intensive industrial

Company Energy

companies in developing Asian countries

Focuses on energy, which is less visible than

waste, water and raw materials

Explains
• what should be done in theory
• how it is done in practice in different companies

© UNEP 2006 5
 The Methodology is based on:
Efficiency methodology

The Cleaner Production (CP) strategy:

Company Energy

• Prevention of waste
• Systematic approach
• Integrated into business processes
• Aimed at continuous improvement

Existing CP and energy audit methodologies

Real practice experience from energy assessments

carried out as part of the GERIAP project in more than
40 Asian industrial companies

© UNEP 2006 6
 Step 1: Planning and Organization
6-Step •
•
•
task 1a: Meeting with top management
task 1b: Form a Team and inform staff
task 1c: Pre-assessment to collect general information

Cleaner •
•
task 1d: Select focus areas
task 1e: Prepare assessment proposal for top management approval

Production Step 2: Assessment

Approach
• task 2a: Staff meeting and training
Efficiency methodology

• task 2b: Prepare focus area flow charts

• task 2c: Walkthrough of focus areas
• task 2d: Quantify inputs and outputs and costs to establish a baseline
Company Energy

• task 2e: Quantify losses through a material and energy balance

Step 3: Identification of Options

• task 3a: Determine causes of losses
• task 3b: Identify possible options
• task 3c: Screen options for feasibility analysis

Step 4: Feasibility Analysis of Options

• task 4a: Technical, economic and environmental evaluation of options
• task 4b: Rank feasible options for implementation
• task 4c: Prepare implementation and monitoring proposal for top
management approval

Step 5: Implementation and Monitoring of Options

• task 5a: Implement options and monitor results
• task 5b: Evaluation meeting with top management

Step 6: Continuous Improvement

• task 6a: Prepare proposal to continue with energy efficiency for top
management approval
© UNEP 2006 7
 Information under each Step
Efficiency methodology

Several tasks: what a company should do as a

minimum
Company Energy

Company examples: how the task was applied at

different companies and lessons learnt

Worksheets: to assist completing the task

Remember: apply the methodology flexibly as long as

energy efficiency is improved because each company
is different.

© UNEP 2006 8
 Step 1: Planning and Organization
Efficiency methodology

Purpose:
Company Energy

• Obtain top management commitment

• Plan and organize an energy assessment

Output:
• Written proposal with selected steps and
tasks to improve the company’s energy
efficiency
• Approved by top management.
© UNEP 2006 9
 Step 1: Continued

Time: 3 – 6 days
Efficiency methodology
Company Energy

Tasks include:
• Task 1a: Meeting with top management (1-2 hours)
• Task 1b: Form a Team and inform staff (0.5-1 day)
• Task 1c: Pre-assessment to collect general information
(1-3 days)
• Task 1d: Select focus areas (0.5-1 day)
• Task 1e: Prepare assessment proposal for top
management approval (2-3 days)

© UNEP 2006 10
 Task 1a: Meeting with Top
Management (1 – 2 hours)

Purpose of first meeting:

Efficiency methodology
Company Energy

Top management:
• Get commitment of company middle managers, staff
and/or external facilitators to carry out a pre-
assessment
• Write a proposal for a detailed energy assessment

Company middle manager or external

facilitator:
• Get top management’s approval for a pre-assessment
• Write a proposal for a detailed energy assessment
© UNEP 2006 11
 Task 1a: Meeting with Top
Management (continued)
Efficiency methodology

Discuss at this 1-2 hour first meeting:

Company Energy

• If/Why top management is interested in

energy efficiency
• Energy areas of interest or concern
• Where the company is now
• Other factors of influence on the assessment
• Time needed for pre-assessment and writing
proposal for feasible options
• Team composition and management
representative
• How staff will be informed to ensure
cooperation
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 Worksheet 1: Reasons for Energy
Efficiency
Efficiency methodology
Company Energy

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 Worksheet 2: Energy Management
Matrix
Efficiency methodology
Company Energy

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 Worksheet 3: Factors influencing
the energy assessment approach
Efficiency methodology
Company Energy

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 Task 1b: Form a Team and inform
staff (0.5 – 1 day)

The Team should consist of:

Efficiency methodology

• Someone who knows the main energy uses

Company Energy

and environmental impacts, e.g. the

Environment Manager or Energy Manager
• Someone who knows the production process,
e.g. the Head of Production
• Someone with access to general company
information and energy cost data, e.g. the
company’s Accountant or Finance Manager
• A communications or training person
• A top management representative
© UNEP 2006 16
Energy Task 1b: Form a Team and inform
Focus staff (cont.)

Team should have

Efficiency methodology

• Knowledge of energy equipment

Company Energy

• Energy intensive production processes

• Access to energy data

Typical positions
• Utilities Manager
• Energy Manager
• Maintenance Engineer

© UNEP 2006 17
 Worksheet 4: Team Members and
Roles
Efficiency methodology
Company Energy

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 Task 1c: Pre-assessment to collect
general information (1 – 3 days)

Information collected should include:

Efficiency methodology

• General company details

Company Energy

• Organization chart
• General production flow chart
• Production data for the past 3 years
• Energy, resource consumption data and costs
for the past 3 years
• Inventory of major equipment
• Overview of information collected for each
process step / department
• Company greenhouse gas (GHG’s) emissions
© UNEP 2006 19
Energy Task 1c: Pre-assessment to collect
Focus general information (cont.)

Include auxiliary sections in the

Efficiency methodology

general production flow chart

Company Energy

• Water treatment
• Boiler and steam systems
• Compressed air systems
• Air conditioning / refrigeration
• Ventilation

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Energy Task 1c: Pre-assessment to collect
Focus general information (cont.)

Production and resource data should

Efficiency methodology

also include
Company Energy

• Fuel consumption rates and costs

• Electricity consumption and costs
• Fuel mix
• Electricity bills from utility

© UNEP 2006 21
Energy Task 1c: Pre-assessment to collect
Focus general information (cont.)

Inventory of major equipment

Efficiency methodology
Company Energy

• Name of equipment: motor

• Numbers: 50
• Capacity: 1 with 100 HP, 39 with >25 HP, 10

with <10 HP
• Type: AC motor
• Supplier: General Electric
• Rated parameters: e.g. load
• Operating parameters (if available)
© UNEP 2006 22
 Worksheet 6: General Production
Flow Chart
Efficiency methodology
Company Energy

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 Worksheet 7: Production and
Resource Data
Efficiency methodology
Company Energy

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 Worksheet 8: Inventory of Major
Equipment
Efficiency methodology
Company Energy

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 Task 1d: Select focus areas (0.5 – 1 day)
Efficiency methodology

A focus area can be:

• Entire plant
Company Energy

• A department, production line, or process step

• Specific (energy) equipment or resources

The process for selecting focus areas:

• Identify possible focus areas
• Determine selection criteria
• Rate each focus areas High, Medium, Low for
each criteria

© UNEP 2006 26
Energy
Focus
Task 1d: Select focus areas (cont.)

Different focus areas can be selected

Efficiency methodology

when energy is considered

Company Energy

• An auxiliary system instead of a

production step
- Steam system
- Compressed air

• Specific major energy equipment

- Boiler house (not just the boiler!)

© UNEP 2006 27
 Worksheet 10: Selection of Focus
Areas
Efficiency methodology
Company Energy

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 Task 1e: Prepare assessment
proposal for top management
approval (2 – 3 days)
Efficiency methodology

It is important to obtain top management

Company Energy

commitment

The assessment proposal should

include:
• Objective, scope (i.e. focus areas)
• Outputs
• Approach (step 2, 3 and 4 of the Methodology)
• Team
• Time & budget

© UNEP 2006 29
 Step 2: Assessment
Efficiency methodology

Purpose: assess where energy is lost/wasted

Company Energy

for the focus area(s)

Output: overview of how much energy is lost

and how much money this costs for the focus
area(s)

Then it becomes easier to identify options to

improve energy efficiency in step 3!

© UNEP 2006 30
 Step 2: Assessment

Time: minimum 3 days

Efficiency methodology
Company Energy

Tasks include:
• Task 2a: Staff meeting and training (>0.5 day for staff
meeting only)
• Task 2b: Prepare focus area flow charts (>2 hours per
focus area)
• Task 2c: Walkthrough of focus areas (> 0.5 day per
focus area)
• Task 2d: Quantify inputs and outputs and costs to
establish a baseline (time required depends on data
available)
• Task 2e: Quantify losses through a material and energy
balance (0.5 – 1 day per focus area)
© UNEP 2006 31
 Task 2a: Staff meeting and training

Staff meeting (0.5 day)

Efficiency methodology

• Inform staff about assessment and their roles

Company Energy

• Get their support

Staff training
• Importance of energy efficiency
• How to carry out an assessment
• Energy equipment & monitoring instruments
• Financing, GHG Indicator, other…

Information:
• Posters, newsletters, meetings
© UNEP 2006 32
 Task 2b: Prepare focus area flow
charts (>2 hours per focus area)
Efficiency methodology

Flow chart for each focus area

Company Energy

• Different steps of the focus area

• Most important inputs (resources) for each step
• Most important outputs for each step
• Intermediate and final products between the
steps

© UNEP 2006 33
Energy Task 2b: Prepare focus area flow
Focus charts (cont.)
Efficiency methodology

Different types of focus areas require

different types of charts:
Company Energy

• Production step: process flow diagram

• Auxiliary systems: layout chart for steam
or
compressed air distribution system
• Specific major equipment: major
equipment and
all auxiliary equipment

© UNEP 2006 34
 Task 2c: Walkthrough of focus
areas (>0.5 day per focus area)
Efficiency methodology

Purpose of the walkthrough(s)

Company Energy

• Better understand the focus area

• Get feedback from production staff about

problems…

• Write down visible losses of energy and

materials

• Obtain information about quantities and costs

© UNEP 2006 35
 Worksheet 14: Walkthrough
observations
Efficiency methodology
Company Energy

© UNEP 2006 36
 Task 2d: Quantify inputs and outputs
and costs to establish a baseline

Time required depends on information available

Efficiency methodology
Company Energy

Why a baseline?
• Measure improvements after implementing
options
• Management only convinced to continue if you
can show savings

Collect the following information:

• Quantities (e.g. tons of coal per day)
• Costs (e.g. $ per ton of coal)
• Other characteristics (e.g. temperature of
water going in and out of the boiler, pressure)
© UNEP 2006 37
 Worksheet 13: Process flow chart,
inputs/output, energy balance
Efficiency methodology
Company Energy

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Energy Task 2d: Quantify inputs and outputs
Focus and costs to establish a baseline (cont)

Examples of material-related
Efficiency methodology

parameters for the boiler house

Company Energy

• Fuel and electricity

• Water
• Blow down
• Ash
• Steam produced
• Condensate recovered

© UNEP 2006 39
Energy Task 2d: Quantify inputs and outputs
Focus and costs to establish a baseline (cont)

Examples of energy-related parameters

Efficiency methodology

for the boiler house

Company Energy

• Pressure
• Temperature
• Flue gas composition
• Draft
• Radiation
Note: specific monitoring equipment may be
needed

© UNEP 2006 40
 coal

Energy water spray

(lignite)
coal yard
Coal fines( carpet loss)
fugitive emissions
Focus coal electricit
y
(lignite)
manual
electricity wate screening ID fan
Standard
Efficiency methodology

r and crushing
conditionin parameters:
g chemical ## (actual)
coal (lignite) ## (actual)##
Company Energy

Head developed
BFW pump ## PROCESS STEP REFERENCE ##
Standard (actual)
parameters: process steam generation
## step blow down loss: ##
Standard Operatin
process pressure g
FD fan paramete unburnt in ash: ##
standard parameters: rating
r
## Hidden loses:
## equipme boiler
nt H2 & moisture:
##
## (actual) wet stream Radiation:
##
steam separation Moisture in air:
electricity air: ##
##(actual) ## (actual)
## (standard) Hot condensate (#)
## (actual) dry steam (##)
##(actual)
© UNEP 2006 41
 Task 2e: Quantify losses through a
material and energy balance
(0.5 – 1 day per focus area)
Efficiency methodology

• Try to “balance” inputs and outputs

(what goes into a process must come
Company Energy

out!)
• Identify “losses”: energy, products,
materials
• Calculate costs of losses

Be practical: this is the most difficult task!

© UNEP 2006 42
 Energy Task 2e: Quantify losses through a
Focus material and energy balance
coal
(lignite)
Coal fines( carpet loss)
water spray coal yard fugitive emissions
Efficiency methodology

coal electricit
(lignite) y
Company Energy

manual
electricity wate screening ID fan
r and crushing Standard
conditionin parameters:
g chemical 17.0 Mk/hr (actual)
coal (lignite) 1.1 t/hr 250 mmWC Flue gases
(actual) Head developed
BFW pump 0.5 PROCESS STEP REFERENCE 200o C & 20kW loss: 13.2%
Standard Mk/hr (actual)
parameters: (actual) process steam generation 2.25 Mk/hr
8 t/hr at 13 kg/cm2 step blow down loss: (actual)
Standard Operatin 1.4%
process pressure 12 kg/cm
2
g 0.24 Mk/hr (actual)
FD fan paramete 6 t/hr 10 unburnt in ash: 4.85%
standard parameters: rating 0.83 Mk/hr (actual)
r kg/cm2
100 mmWC; 4 t/hr Hidden loses:
30o C & 15 kW at equipme boiler
nt H2 & moisture:
2.5 Mk/hour (actual) 14.4%
11.40 Mk/ht wet stream Radiation:
(actual) 0.17 Mk/hr (actual) 1%
steam separation Moisture in air:
electricity air: 0.03 Mk/hr (actual) 0.15%
9 kW(actual) 12.61 t/hr (actual)
14.34 t/hr Hot condensate (3%)
(standard) 0.09 Mk/hr (actual) dry steam (97%)
11.3 Mk/hr © UNEP 2006 43
 Step 3: Identification of Options
Efficiency methodology

Purpose: identify opportunities to improve

Company Energy

energy efficiency for the selected focus areas

Output: list of options that will be investigated

on their feasibility in step 4

Tasks and minimum time:

• Task 3a: Determine causes of losses (0.5 day per focus
area)
• Task 3b: Identify possible options (0.5 day per focus
area)
• Task 3c: Screen options for feasibility analysis (0.5 day)
© UNEP 2006 44
 Task 3a: Determine causes of
losses (0.5 day per focus area)
Efficiency methodology

Brainstorm session with staff and others

Company Energy

Ask the question: Why are these losses

occurring?
Keep asking until you found the “root
cause”
Look for different causes:
• Man
• Method
• Machine
• Material
© UNEP 2006 45
 Task 3a: Determine causes of
losses (cont.)
Efficiency methodology

Fishbone diagram
Company Energy

© UNEP 2006 46
Energy Task 3a: Determine causes of
Focus losses (cont.)
Efficiency methodology

Material losses with an energy-related

cause
Company Energy

• Low dye exhaustion caused by low

temperatures
• Scale losses caused by cold air infiltration in
rolling mills
Energy losses with an energy-related
cause
• High electricity use in rollers caused by
overheating of bars in rolling mills
• High transmission and distribution losses
caused by low power factor © UNEP 2006 47
Energy Task 3a: Determine causes of
Focus losses (cont.)

Energy losses with a material-related

Efficiency methodology

cause
Company Energy

• Inefficient combustion caused by improper

sizing of coal
• High steam consumption in dyeing process
caused by too high liquor-to-cloth ratio
Poor product quality with an energy-
related cause
• Thin zinc layer caused by high temperature of

zinc bath in galvanizing

• Uneven strength of forged products caused
by © UNEP 2006 48
Energy Task 3a: Determine causes of
Focus losses (cont.)

Other examples
Efficiency methodology

• Low boiler efficiency caused by operating at

Company Energy

<50% capacity
• High electricity consumption due to
compressed
air leaks
• High steam consumption caused by un-
insulated
flanges
• High electricity consumption due to motor
operating at varying loads
Do you know of any other examples?
© UNEP 2006 49
 Task 3b: Identify possible options
(0.5 day per focus area)

Brainstorm session with staff and others

Efficiency methodology
Company Energy

Ask the question: What can we do to

reduce energy losses?

Options can fall in the following categories:

• Good housekeeping
• Improved process management
• Production process / equipment modification
• New technology / equipment
• Input material substitution
• On-site reuse / recovery
• Production of useful by-product
• Product modification
© UNEP 2006 50
Energy Task 3b: Identify possible options
Focus (cont.)

A combination of options is likely

Efficiency methodology
Company Energy

Poor bleaching can be solved by:

• Reducing the liquor-to-cloth ratio
• thereby increasing the bleaching bath
temperature

© UNEP 2006 51
 Task 3c: Screen options for
feasibility analysis (0.5 day)
Efficiency methodology

Put identified options in three

Company Energy

groups:
• Options that can be implemented directly
• Options that require further analysis
• Options that can be considered at a later
stage

© UNEP 2006 52
 Worksheet 15: Causes, identify
options and screening
Efficiency methodology
Company Energy

© UNEP 2006 53
 Step 4: Feasibility Analysis of
Options
Efficiency methodology

Purpose:
Company Energy

• Determine which options are technically,

financially and environmentally feasible
• In what order feasible options should be
implemented

Output: proposal that is approved by top

management with:
• Recommended options for implementation
• How to do this
• List of options that require further investigation

© UNEP 2006 54
 Step 4: Feasibility Analysis of
Options
Efficiency methodology

Tasks:
Company Energy

• Task 4a: Technical, economic and

environmental evaluation of options
• Task 4b: Rank feasible options for
implementation (0.5-1 day)
• Task 4c: Prepare implementation and
monitoring proposal for top management
approval (2-3 days)

© UNEP 2006 55
 Task 4a: Technical, economic and
environmental evaluation of options

The Team should (time depends on options):

Efficiency methodology
Company Energy

• Investigate which options are technically,

economically and environmentally feasible
• Identify other possible reasons for
implementing the option
• Think of possible barriers to implementing
the option

© UNEP 2006 56
 Worksheet 16: Option analysis and
implementation (part for feasibility analysis)
Efficiency methodology
Company Energy

© UNEP 2006 57
Energy Task 4a: Technical, economic and
Focus environmental evaluation of options

Technical
Efficiency methodology
Company Energy

• Location of power, steam, compressed air lines

• Handling capacity of existing system for new
equipment

Environmental
• Fluorescent tube lights use less electricity than
incandescent lamps but contain toxic materials
• Bag filter reduces dust but uses electricity

© UNEP 2006 58
 Task 4b: Rank feasible options for
Implementation

Team meeting to give each option a

Efficiency methodology

Rank (0.5 – 1 day):

Company Energy

1. Implementation in short term (e.g. <1 year)

2. Recommended for implementation but in the
longer term (e.g. 2-3 years)
3. Recommended for further investigation or
consideration at a later stage
4. Unfeasible options

© UNEP 2006 59
 Task 4b: Rank feasible options for
Implementation (cont.)

For options to be implemented (rank =

Efficiency methodology

1)
Company Energy

(time depends on options):

• Implementation and monitoring tasks

• Who is responsible
• Completion dates
• How much staff time required
• Comments

© UNEP 2006 60
 Worksheet 16: Option analysis and
implementation (part for implementation)
Efficiency methodology
Company Energy

© UNEP 2006 61
 Worksheet 17: Ranking of options
Efficiency methodology
Company Energy

© UNEP 2006 62
 Task 4c: Prepare implementation and
monitoring proposal for top
management approval
Efficiency methodology

Prepare Implementation and Monitoring

Plan
Company Energy

• Introduction
• Number of options identified, options
investigated for feasibility, feasible options,
options requiring further investigation, and
unfeasible options
• Options recommended for implementation in
the short term
• Worksheets for each option

Obtain management approval

© UNEP 2006 63
 Step 5: Implementation and
Monitoring of Options

Purpose
Efficiency methodology

• Implement feasible options in order of priority

Company Energy

• Monitor results
• Discuss findings with top management

Output
• Improved energy efficiency, reduced costs and reduced GHG
emissions
• Agreement with top management about the next steps

Tasks
• Task 5a: Implement options and monitor results (time depends
on options)
• Task 5b: Evaluation meeting with top management (0.5 day)
© UNEP 2006 64
 Task 5a: Implement options and
monitor results
Efficiency methodology

Carry out the Implementation and

Monitoring Plan
Company Energy

Record results for each option:

• Economic results
• Environmental results
• Other results: e.g. any other benefits from the
option and barriers encountered

Communicate results to staff

© UNEP 2006 65
 Worksheet 16: Option analysis and
implementation (part for feasibility analysis)
Efficiency methodology
Company Energy

© UNEP 2006 66
 Task 5b: Evaluation meeting with
top management (2-4 hours)
Efficiency methodology

Purpose:
• Close the first round of energy efficiency projects
Company Energy

• Gain management commitment to continue with energy

efficiency

Discuss the following:

• Results
• How to communicate results internally and externally
• How to continue
• Additional options for implementation / investigation
• New focus areas to carry out more assessments
• How to integrate energy management throughout the
company’s systems

© UNEP 2006 67
 Step 6: Continuous Improvement

Purpose: ensure that the company continues

Efficiency methodology

improving energy efficiency in a systematic way

Company Energy

that is integrated in company processes

(these are the key components of Cleaner Production!!)

Output:
• Continuation of implementing energy efficiency
options
• Integration of energy management into
company processes

Task 6a: Prepare proposal to continue with

energy efficiency (2-3 days)
© UNEP 2006 68
 Task 6a: Prepare a proposal to continue
with energy efficiency for top
management approval
Efficiency methodology

Write a proposal
Company Energy

• Based on what was agreed with top management at

the evaluation meeting
• Considering new focus areas and options identified for
later implementation / investigation
• Include how to integrate energy management into
company processes!!

Seek top management approval

© UNEP 2006 69
 In Summary:

The Company Energy Efficiency

Efficiency methodology

Methodology helps companies to:

Company Energy

• Save energy
• Reduce costs
• Protect the environment

Now and in the future!

© UNEP 2006 70
 Training Session on the Company
Energy Efficiency methodology


Efficiency Methodology

How to become
Company Energy

Energy Efficient
THANK YOU
FOR YOUR ATTENTION

© UNEP 2006 71
 Disclaimer and References

• This training session was prepared as part of the

Efficiency Methodology

development and delivery of the course “Energizing

Company Energy

Cleaner Production” funded by InWent, Internationale

Weiterbildung und Entwicklung (Capacity Building
International, Germany) and carried out by the United
Nations Environment Programme (UNEP)
• The session is based on materials from the “Energy
Efficiency Guide for Industry in Asia” developed as
part of the GERIAP project that was funded by the
Swedish International Development Cooperation
Agency (Sida)
• The textbook chapter is available on
www.energyefficiencyasia.org
© UNEP 2006 72