Energy Systems Optimization Current and Future International Practices

Jigar V. Shah October 19, 2011 Beijing

Topics

• What is Energy Systems Optimization (ESO)? • Why does ESO matter? • International practices - current and future • Performance evaluation practices • Brief introduction to international experts

IIP at a glance….

OUR MISSION To significantly reduce GHG emissions by giving business leaders and policymakers access to effective practices, technologies and tools to advance industrial productivity.

WHAT WE DO • Share best practices • Policy assistance • Financial expertise • Technical support • Research funding

WHO WE ARE • A non-profit established by the ClimateWorks Foundation in 2010 • Strategically linked to a global network of groups addressing climate change • Work in partnership with industries, governments, financial institutions etc.

IIP At A Glance….

OUR PARTNERSHIP WITH ENERGY FOUNDATION

• Energy Foundation’s industry program and IIP have complimentary strategies

• In China IIP works in close coordination with Energy Foundation’s industry program

• IIP brings global best practice knowledge, experts, and partners in areas Energy Foundation identifies as important for mutual effort

Industry continues to be the largest energy consuming sector in the world

Courtesy IEA

Energy efficiency has already taken root in industry……

Courtesy IEA

What is Energy Systems Optimization?

• Design and operation of industrial processes – To maximize production and profitability – To minimize energy use

Why does ESO matter?

Considering just the motor…….. Courtesy UNIDO

Why does ESO matter?

Considering motor and pump…….. Courtesy UNIDO

Why does ESO matter?

Considering motor, pump, and discharge valve… Courtesy UNIDO

Why does ESO matter? • Now if you take one more step… • Add in a power plant for electricity supply…… • Overall efficiency is 4%!!!!! For impact, we need to look at the entire system

What are the elements of ESO?

• Energy Management System • Metering and measurements • Heat and material balances • Process control and optimization • Process integration • Performance evaluation • Design and operating guidelines, standards,

and training

International practices Current Future Barriers

• Varies by sector – cement, iron and steel, refining, petrochemicals

• Multinationals have well established systems

• Licensors of technology play an important role

• Plant certification schemes have important elements – ISO 50001 – GSEP (Global

Superior Energy Performance)

• Lack of awareness

• Inability to invest resources

• Age of plant and technology

• Size of plant • Practice in the

sector and country

Performance evaluation

USEPA’s Energy Performance Index

Solomon Energy Intensity Index

CSI Energy Consumption Per Region (2009)

International Experts

Jimmy Kumana Refining

Professor Mahalec Refining

Vilnis Vesma Performance Evaluation

Professor Worrell Iron and Steel

Dr. Arvind Thekdi Iron and Steel

Mike Brown Iron and Steel