Energy efficiency indicators in industry

Bruno Lapillonne, Enerdata

Taller de trabajo del proyecto BIEE / Mesoamérica

Base de Indicadores de Eficiencia Energética

UPME 24-25 Marzo 2015

Outl

ine

1. Overall indicators

2. Indicators by branch

3. Data requirements

Energy intensity of industry

Energy intensity of industry: ratio relating the energy consumption of industry to the value added of industry (koe/€2000) Decrease of the ratio means that industry requires less energy to generate one unit (i.e. one euro) of value added

It means that industry use energy more efficiently from an economic viewpoint but not necessarily from a technical viewpoint We will say that industry has improved its energy productivity

Energy intensity of industry can be defined at different levels depending on the coverage of the industry sector

The definitions are given by the International classification of industrial branches (ISIC or Nace) where industry is broken down into 4 main sectors: Section C: Mining Section D: Manufacturing Section E: Electricity, gas and water Section F: Construction

Trends in energy intensity of industry

Energy intensities of industry, manufacturing and mining: case of Chile

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

koe

/ k$

20

03

Intensidad Industria Intensidad Manufactura Intensidad Minería

Source: BIEE, Ministerio de Energía de Chile

Energy intensity : total industry versus manufacturing

6

-1,5%

-1,0%

-0,5%

0,0%

0,5%

1,0%

1,5%

2,0%

2000-2005 2005-2010 2000-2010

Total industry Manufacturing

Variation of the energy intensity in industry (country X)

Trends can be quite different between industry total and manufacturing industry

Outl

ine

1. Basic indicators

2. Indicators by branch

3. Data requirements and sources

Advanced indicators for industry

8

Intensity by branch (koe/$2000, koe/$2000p)

Specific energy consumption (koe/ton)

Sectoral energy intensities in industry

Energy intensity by industrial branch are calculated as a ratio relating the energy consumption of the branch and its value added of industry (koe/€2000) Requires energy consumption and value added by branch at constant prices with similar classifications

Exist an international classification of manufacturing branch that is used in more and more countries

Manufacturing industry by branch: international classification(ISIC / Nace)

Nace code (2 digits)

15-16 Food (15) and tobacco (16)

17-19 Textile (17), Wearing apparel (18) and Leather (19)

20 Wood

21-22 Paper (21) and printing (22)

24-25 Chemicals (24), Rubber & plastics (25)

26 Non metallic Minerals

27 Primary metals (steel, non ferrous)

28 Fabricated metallic products

29 Machinery and equipment

30-33 Office equipment (30), electrical machinery (31),

communication equipment (32), optical (33)

34-35 Motor vehicles (34) and transport equipment (35)

36-37 Others (furniture,...)

Refineries and coking plants (Division 23) excluded;

28%

1%

12%

9% 6% 6%

29%

9%

2012 Food

Textile

Paper

Chemicals

Cement

Ceramics

Primary metals

including iron-alloys

Other manufacturing

21%

2%

11%

11% 6% 5%

35%

9%

2000

Energy consumption of manufacturing by sub-sector in Brazil

Increasing relative share of food industry: sugar, processed and frozen products; Decreasing share of primary metals and chemicals (less investments and more imports)

11 Source: BIEE EPE

Breakdown of the energy consumption by industrial branch: case of Brazil

12

0

0,01

0,02

0,03

0,04

0,05

0,06

0,07

2000 2010

Energy intensity by branch (koe per $2000) (Uruguay)

Sectoral energy intensities: case of Uruguay

Specific energy consumption of energy intensive products: case of Chile

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Toe

/ to

n

Intensidad Papel y celulosa Intensidad Acero Intensidad Cemento Intensidad Cobre

Source: BIEE, Ministerio de Energía de Chile

Specific energy consumption (toe/ton)

Copper is very intensive in Chile and its specific energy consumption is increasing due to less concentrated ores Using a double scale or showing each product separately enables to better see the trends by product

0,000

0,100

0,200

0,300

0,400

0,500

0,600

0,700

Steel

toe/

ton

ne

1990 2000 2010 2012

Specific energy consumption of steel in Brazil

Decreasing specific energy consumption of steel

14

Source: EPE Source: BIEE/EPE

Benchmarking of energy efficiency perfomance among EU countries: case of ODYSSEE

Need to compare performance with homogeneous product (e.g. clinker,

the energy intensive component of cement, or mechanical pulp or oxygen

steel)

If heterogeneous product or if there exist different production process,

need of benchmarking on a similar mix of product and process (e.g. steel,

cement, paper)

In ODYSSEE graphical benchmarking with the specific consumption

in the vertical axe and the process mix in the horizontal axe

Distance to the world benchmark line indicate the potential of

improvement

16

Average energy consumption per ton of steel (2004)

USA

BrazilRussia

EU

Egypt

Japan

Thailand

ChinaIndia

Taiwan Mexico

Turkey

Korea

Ukraine

AustraliaArgentina

Canada

South Africa

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0% 20% 40% 60% 80% 100%

% electric steel

toe/t

World benchmark

Distance to benchmark:

energy savings potential

Comparison

should be made at

similar process

mix

In industry, the best world practices are no longer found in the most developed countries

Source: Enerdata

Outl

ine

1. Basic indicators

2. Advanced indicators

3. Data requirements and sources

Data and indicators: industry

18

• Value added at constant price by industrial branch;

• Production index by industrial branch;

• Physical production for energy intensive products*;

• Final energy consumption by industrial branch;

Data

• Energy intensity by branch* • Unit consumption by intensive

products; • Energy intensity at constant

structure*;

INDICATORS

*steel, cement, aluminium, copper, ferroalloys,

sugar, iron mining, potassium, ceramics, gold mining

Activity data in industry : overview

Activity data by branch are usually collected by National Statistical Offices

The branch covered follows at national level national classifications that are usually adapted from international classifications:

Published by National Statistical Offices often in current prices, sometimes also at constant price

If constant price not available, data may be given with price index by branch and/or index of volume by branch can be used to calculate value added values at constant price

Energy consumption by branch: main sources

Different sources of information are available:

The most comprehensive sources are industrial surveys;

The other source is administrative , i.e. the administration;

requires utilities and/or consumers to provide the information;

Modeling may be used to complete the information for intermediate years;

Metering relate to audits data that can only be used at national level if the sample is representative.

National energy consumption by branch: overview of sources

According to an IEA consultation covering mainly OECD countries, industrial surveys represented about half of the sources of national energy consumption statistics by branch in a sample of 22 countries; The other main source is administrative (about one fourth) 30% of countries rely on more than one method

52%

26%

22%

0%

Surveys

Administratives

Modeling

Metering

Source: AIE survey 2011 (march 2012),

Main lessons from indicators in industry

Moderate and unequal coverage of indicators by industry sub –sector; The main problems encountered are:

1. Lack of energy consumption by branch in 5 countries ( Argentina Honduras, Nicaragua, Panama, Guatemala).

2. Incomplete coverage of industry sector in official statistic (“zone franca”) 3. Lack of harmonized classification by industry sub sector between value

added and energy consumption : many countries only provide energy consumption for selected energy intensive production that do not fit the ISIC classification used for VA (case of Brazil, Chile and Mexico) impossibility to calculate the effect of changes in the structure of industry .

4. Production index defined at a more disaggregated level than required in the template “aggregation” of the index to be done using weight and not arithmetic average (example shown in an excel file “index average.xls)

5. Lack of specific consumption for energy intensive products (i.e. steel, cement, cement, paper) because of confidential data on consumption and/or production (not enough companies) (e.g. Uruguay)