Energy efficiency in the food retail sector: barriers,drivers and acceptable policies

The objectives of this research are to examine empirically the drivers and barriers to energy efficiency measures in an important energy-using sector, namely, the food retail sector, and to gain an understanding of more effective energy efficiency policies in this sector. Although food retailers consume a significant amount of energy due to the specialised needs of stores, there has been little research on the barriers and drivers of energy efficiency measures in this sector. A survey of small food retailers was carried out to understand attitudes to energy efficiency measures and to examine the acceptability of different energy efficiency policy options. In addition, external stakeholders were consulted in order to validate and contextualise the results of the survey. We find that there is a complementary relationship between energy efficiency barriers and drivers for food retailers and that it is remarkably coherent. We identify policies, such as subsidies and support for ESCOs, that exploit both the complementarities between barriers and drivers and are acceptable to food retailers also. This methodology should help identify and design more effective policies to deliver energy efficiency improvements in the food retail and other services subsectors.     

Barriers to energy efficiency improvement and decision-making behavior in Thai industry

The industrial sector is one of the main energy consuming sectors in Thailand and accounted for 36.7% of total energy consumption in 2005. The trend of rising energy prices and tougher competition increases the demand to improve energy efficiency in Thai industry. However, the existence of various barriers often hinders the realization of even some cost-effective energy efficiency measures. In an attempt to investigate key barriers to and drivers for energy efficiency improvement in Thai industry, this study found that the most important barrier expressed by both the textile and cement industries studied as well as experts interviewed is that the management is concerned about production and other matters rather than energy efficiency. Reducing product cost by reducing energy cost is found to be the main driver for energy efficiency investment. Using a conceptual industrial energy efficiency policy framework this study shows how various energy efficiency policies can affect the process of decision-making for and investment in energy efficiency in industry.     

Barriers to and drivers for energy efficiency in the Swedish foundry industry

Despite the need for increased industrial energy efficiency, studies indicate that cost-efficient energy conservation measures are not always implemented, explained by the existence of barriers to energy efficiency. This paper investigates the existence of different barriers to and driving forces for the implementation of energy efficiency measures in the energy intensive Swedish foundry industry. The overall results from a questionnaire show that limited access to capital constitutes by far the largest barrier to energy efficiency according to the respondents. A comparison between group-owned and privately owned foundries shows that, except for limited access to capital, they face different high-ranked barriers. While barriers within group owned companies are more related to organizational problems, barriers within private foundries are more related to information problems. This study also found that energy consultants or other actors working with energy issues in foundries are of major importance in overcoming the largest barriers, as the foundries consider them trustworthy. They may thus help the foundries overcome organizational problems such as lack of sub-metering and lack of budget funds by quantifying potential energy efficiency investments. The two, by far, most important drivers were found to be people with real ambition and long-term energy strategies.     

Tailoring cross-sectional energy-efficiency measures to target groups in industry

The improvement of energy efficiency in industrial companies plays a crucial role for the energy transition. Although significant economic potentials have been identified, the concerned actors are still struggling to realize them fully. To support the implementation of energy efficiency measures by passing policies, a deeper understanding of the barriers affecting different kinds of companies is necessary to better match the options to their needs and requirements. This paper considers companies’ characteristics and barriers to draw conclusions on energy efficiency policies and specific recommendations on energy efficiency measures. It recommends compromises for policies between high administrative efforts to design individual solutions for companies and too generic approaches, which are not tackling the specific barriers and companies’ characteristics. Our analysis assesses monitoring data of 263 enterprises of the Learning Energy Efficiency Networks LEEN in Germany. The LEEN support energy audits, company networking and assesses implemented energy efficiency measures. Lack of information combined with unfavourable reasoning in decision-making impedes the adoption of profitable measures. Thus, financial policy instruments should aim at promoting long-term decision-making. Audits turned out to be an effective information tool and are more common in LEs than in SMEs. Accordingly, the number of implemented measures and the choice of specific measures relate to company size. Regarding barriers to energy efficiency measures, we found financial barriers most prevalent, but there was no general correlation with company size. Moreover, financial restrictions are not necessarily caused by a lack of money, but also by risk aversion or unlikely payback periods. LEs are stronger affected by motivational barriers, especially if the expected organizational effort is high. Reducing transaction costs can increase the willingness to invest greater efforts in energy efficiency measures.     

Classification of drivers for industrial energy efficiency and their effect on the barriers affecting the investment decision-making process

Industrial energy efficiency represents a priority for European industrial competitiveness. Many studies offer contributions providing evidence of the existence of driving forces supporting the adoption of energy efficiency measures, but a structured approach to drivers for industrial energy efficiency is still lacking. Therefore, in the present study, we propose a definition of drivers, making emphasis on the industrial decision-maker perspective, that is needed for their classification here proposed. Focus is given to point out the difference between internal and external drivers, highlighting the major stakeholders responsible for their promotion. Drivers are further categorized into: regulatory, economic, informative, and vocational training. Moreover, we propose a framework describing the effect of drivers on barriers in the decision-making process, as well as a preliminary identification of the major stakeholders to promote drivers. The study opens several opportunities for further research in the area of industrial energy efficiency.     

Enabling technologies for industrial energy demand management

This state-of-science review sets out to provide an indicative assessment of enabling technologies for reducing UK industrial energy demand and carbon emissions to 2050. In the short term, i.e. the period that will rely on current or existing technologies, the road map and priorities are clear. A variety of available technologies will lead to energy demand reduction in industrial processes, boiler operation, compressed air usage, electric motor efficiency, heating and lighting, and ancillary uses such as transport. The prospects for the commercial exploitation of innovative technologies by the middle of the 21st century are more speculative. Emphasis is therefore placed on the range of technology assessment methods that are likely to provide policy makers with a guide to progress in the development of high-temperature processes, improved materials, process integration and intensification, and improved industrial process control and monitoring. Key among the appraisal methods applicable to the energy sector is thermodynamic analysis, making use of energy, exergy and ‘exergoeconomic’ techniques. Technical and economic barriers will limit the improvement potential to perhaps a 30% cut in industrial energy use, which would make a significant contribution to reducing energy demand and carbon emissions in UK industry. Non-technological drivers for, and barriers to, the take-up of innovative, low-carbon energy technologies for industry are also outlined.     

Success factors of energy management in energy‐intensive industries: Development priority of energy performance measurement

Economic, environmental and social pressures have increased the need for business organisations to control and manage their energy performance on a continual basis. Responding to these pressures follows a learning curve that is influenced by changing drivers and barriers. Consequently, different energy management factors have different development priorities over time. This paper explores the development priority of one factor, namely, energy performance measurement, in the energy‐intensive industrial sector, which is the most advanced industrial sector in its energy management learning curve. In addition, the paper identifies the research and development needs of energy performance measurement that are required to further improve energy performance. The results are based on interviews carried out with managers and operators in three energy‐intensive industrial sectors in Finland. Energy performance measurement is found to be the third development priority in energy management, behind resource and commitment issues. This represents a paradox as resources and commitment are prerequisites for energy performance measurement to be developed, whereas energy performance measurement influences the very same issues by enforcing changed behaviour. Several deficiencies are identified in energy performance measurement in the temporal, systemic and organisational dimensions. Research should be continued towards the implementation of energy performance measurement as a process, the integration of energy performance metrics into overall management and the development of metrics for different industrial sectors, companies and operating cultures. Copyright © 2012 John Wiley & Sons, Ltd.     

Substitution possibilities and determinants of energy intensity for China

This paper measures technological change, factor demand and inter-factor and inter-fuel substitutability measures for China. We use individual fuel price data and a two-stage approach to estimate total factor cost functions and fuel share equations. Both inter-factor and inter-fuel substitution elasticities are calculated and the change in energy intensity is decomposed into its driving forces. The results suggest that energy is substitutable for capital regionally and for labor nationally. Capital substitutes for energy more easily than labor does. Energy intensity changes vary by region but the major drivers seem to be “budget effect” and the adoption of energy-intensive technologies, which might be embodied in high-level energy-using exports and sectors, capital investment and even old technique and equipment imports. Whether the trend in rising energy intensity continues will be significant for China and the rest of the world.     

An interdisciplinary perspective on industrial energy efficiency

This paper combines engineering and social science approaches to enhance our understanding of industrial energy efficiency and broaden our perspective on policy making in Europe. Sustainable development demands new strategies, solutions, and policy-making approaches. Numerous studies of energy efficiency potential state that cost-effective energy efficiency technologies in industry are not always implemented for various reasons, such as lack of information, procedural impediments, and routines not favoring energy efficiency. Another reason for the efficiency gap is the existence of particular values, unsupportive of energy efficiency, in the dominant networks of a branch of trade. Analysis indicates that different sectors of rather closed communities have established their own tacit knowledge, perceived truths, and routines concerning energy efficiency measures. Actors in different industrial sectors highlight different barriers to energy efficiency and why cost-effective energy efficiency measures are not being implemented. The identified barriers can be problematized in relation to the social context to understand their existence and how to resolve them.     

Barriers to energy efficiency in shipping: A triangulated approach to investigate the principal agent problem

Energy efficiency is a key policy strategy to meet some of the challenges being faced today and to plan for a sustainable future. Numerous empirical studies in various sectors suggest that there are cost-effective measures that are available but not always implemented due to existence of barriers to energy efficiency. Several cost-effective energy efficient options (technologies for new and existing ships and operations) have also been identified for improving energy efficiency of ships. This paper is one of the first to empirically investigate barriers to energy efficiency in the shipping industry using a novel framework and multidisciplinary methods to gauge implementation of cost-effective measures, perception on barriers and observations of barriers. It draws on findings of a survey conducted of shipping companies, content analysis of shipping contracts and analysis of energy efficiency data. Initial results from these methods suggest the existence of the principal agent problem and other market failures and barriers that have also been suggested in other sectors and industries. Given this finding, policies to improve implementation of energy efficiency in shipping need to be carefully considered to improve their efficacy and avoid unintended consequences.     

Drivers for energy efficiency and their effect on barriers: empirical evidence from Italian manufacturing enterprises

Industrial activities are responsible for a significant share of both global delivered energy demand and CO₂ emissions. Hence, a widespread adoption of energy-efficient technologies and practices represents a crucial means for sustainable production. Adopting a novel framework of drivers for energy efficiency describing the effect of drivers on barriers in the decision-making process steps and able to account for the nature of drivers and the stakeholders responsible for their promotion, we have performed an exploratory investigation into 61 manufacturing small- and medium-sized enterprises in Northern Italy. Our findings have highlighted the importance of information and economic drivers, showing the need for enterprises to be supported not only by public institutions but also by external stakeholders involved in the supply of energy-efficient technologies and practices such as industrial associations and groupings, as well as service and technology suppliers. Moreover, our study has highlighted an almost equal relevance of both internal and external drivers. According to our findings, the increase of awareness—generating the interest to energy issues and stimulated both by external and internal stakeholders—as well as financial issues have emerged as the most critical in the decision-making process to adopt an energy-efficient measure. A preliminary comprehension of the mechanisms relating drivers to barriers in the decision-making process brought additional value to the study, highlighting the most effective and specific means to overcome the existing barriers. We have also explored the effect of several firm characteristics, such as firm size and energy intensity offering suggestions for industrial decision-makers as well as policy-makers.     

Analysis of non-economic barriers for the deployment of hydrogen technologies and infrastructures in European countries

Hydrogen is an energy carrier which can be used to store variable renewable energy and face varying electricity demand and generation-driven fluctuations reducing the negative effects of the increasing share of renewables in the European energy mixes.The aim of this paper is to pinpoint and assess non-economic barriers (NEBs) that can slow down the deployment of hydrogen technologies and infrastructures in Europe.The method includes an expert opinion survey involving selected European experts to identify main NEBs, estimate their impacts, describe their effects, highlight suitable measures to overcome them and pinpoint hitches that make difficult to overtake them.Collecting the information gathered by written questionnaires and in-depth interviews of experts of almost all European countries, the obtained results provide an overall framework of main NEBs identifying the role of forthcoming policies and governmental actions to overcome each barrier.Lastly, preliminary exploitation strategies have been outlined for improving the utilization of hydrogen as an effective energy carrier for storing and to more efficiently use renewable energy produced in Europe.     

Local learning-networks on energy efficiency in industry – Successful initiative in Germany

Profitable energy-efficiency potentials are often not exploited in industry since management tends not to focus on energy issues. Sharing experiences between companies reveals possibilities for reducing the transaction costs involved. For this purpose, regionally or locally-organised learning networks of companies have been established. Social mechanisms are used to motivate management to pay more attention to energy efficiency in Switzerland and Germany. The main elements of the activities include initial consultation for each company with an experienced engineer, agreement on a common target for energy-efficiency improvement, regular meetings with technical presentations and an exchange of experiences, yearly control of energy consumption and CO₂ emissions as well as scientific monitoring and evaluation of the process.The results of some evaluations show that substantial progress has been made in implementing organisational measures and investments in energy efficiency in the participating companies. The reasons for these achievements are discussed and conclusions drawn about the opportunities and limits of this instrument. Finally, a recommendation is made to implement this instrument on a broader level.     

工业企业能源管理信息系统研究

针对工业企业能源管理信息系统(EEMIS)建设过程中缺乏能效诊断技术的问题,在传统信息系统和自动化系统的基础上,通过机理建模和机器学习相结合的方法,研究了重点用能设备、耗能工序和能量系统的能效分析模型,提出了一种新型的EEMIS的结构和功能,并开发了软件,弥补了EEMIS在能效分析诊断方面的不足,增强了系统的实用性。     

Saving money vs investing money: Do energy ratings influence consumer demand for energy efficient goods?

The article analyses economic barriers leading to the energy efficiency gap in the market for energy-using products by observing several million transactions in the UK over two years. The empirical exercise estimates AIDS models for refrigerators, washing machines, TVs, and light bulbs. Results indicate that market barriers are crucial in the demand for energy efficient options, and consumer response to changes in appliance prices, total expenditures, and energy prices depends on the possibility of behavioural adjustments in consumption. In contrast with the induced innovation hypothesis, current electricity prices can fail to induce innovation because of their short-term impact on disposable income, while consumers invest in energy efficiency when expecting electricity prices to rise in the future.     

Barriers to and driving forces for energy efficiency in the non-energy intensive manufacturing industry in Sweden

The manufacturing industry is facing tougher competition which increases the demand to implement cost-effective energy efficiency measures. However, studies have indicated that obvious cost-efficient measures are not always undertaken. This is explained by the existence of barriers to energy efficiency. The aim of this study is to investigate the existence and importance of different barriers to the implementation of energy efficiency measures in the Swedish non-energy intensive manufacturing industry. Results from this study highlight a number of factors that inhibit the degree of implementation, such as the cost and risk associated with production disruptions, lack of time and other priorities, lack of sub-metering in larger organizations, etc. The study also finds a number of drivers, such as the existence of people with real ambition and a long-term energy strategy at site level.     

Broadening to sustainability the perspective of industrial decision-makers on the energy efficiency measures adoption: some empirical evidence

The industry should take further efforts towards increased energy efficiency, that is a major contributor to improve industrial sustainability performance, by implementing energy efficiency measures (EEMs). However, the rate of adoption of these measures is still quite low. Hitherto, EEMs and barriers to their adoption have been evaluated almost exclusively from the viewpoint of energy efficiency decision-makers, not accounting for the broader sustainability perspective. This work aims at understanding whether an industrial sustainability perspective can better address issues related to EEMs adoption, analyzing the question through different viewpoints and insights offered by industrial decision-makers of different industrial sustainability areas within a firm. By doing this, we aim at offering a contribution in the understanding of the low rate of adoption of EEMs. As case studies, we investigated 12 firms from Northern Italy. In comparison to previous literature, results show that an industrial sustainability perspective can better explain the real decision-making process of adopting an EEM. Indeed, people knowledgeable about different industrial sustainability areas may perceive different barriers about the same EEM. EEMs may be negatively affected by reasons related to other areas of industrial sustainability, while positive reciprocal impacts may exist among areas of industrial sustainability; thus, EEMs may have effects on areas other than energy efficiency, and these effects may be perceived only by such areas. The study concludes with some remarks for policy and industrial decision-makers and advice for further research.     

Modeling energy efficiency insurances and energy performance contracts for a quantitative comparison of risk mitigation potential

Financial risk mitigation via Energy Performance Contracting or Energy Efficiency Insurances may overcome individual barriers for energy efficiency investments. However, while the financial industry, and especially insurance companies, may have compelling reasons to get involved in energy efficiency investments, the research on and real-world applications of risk transfer contracts for private decision-makers are scarce. Thus, this study quantitatively compares the risk mitigation potential of risk transfer contracts based on a comprehensive energy bill savings forecast model comprising stochastic processes for weather, commodity prices, and technological energy efficiency performance. The model is fitted with a unique dataset for German residential buildings. Our findings indicate that risk transfer contracts positively affect individual decision-makers' willingness to invest in energy efficiency. Generally, we find Energy Performance Contracts to be superior in most scenarios when transaction costs are not considered. However, insurance companies may benefit from diversification effects and by ceding risks to global capital markets and reinsurance companies.     

Evaluating the efficiency of integrated systems in the process industry–Case: Steam cracker

A literature survey indicates that decisions about whether to reject or accept an investment are largely based on financial factors. The survey also indicates that a comparison of different efficiency improvement studies is difficult because their results are not readily commensurable. From the management perspective, more information on the physical aspects affecting efficiency is needed. From the engineering perspective, studies on integrated processes deal with a number of criteria that are often in conflict with each other, and for which information is difficult to produce.This paper discusses ways to analyse efficiency improvement studies in integrated industrial processes. The paper demonstrates how these analyses could be made more comprehensive. The paper presents a case study where test runs and simulations were carried out to improve process efficiency by adjusting process operating parameters. The case study was re-evaluated using a novel approach that has been developed to assess the efficiency of integrated systems. This includes considerations from three design perspectives: energy efficiency, material efficiency and operational efficiency, which, when analysed simultaneously, result in a more complete set of design and evaluation criteria.     

Counting project savings—an alternative way to monitor the results of a voluntary agreement on industrial energy savings

In 2008, the Dutch voluntary agreements on industrial energy efficiency faced fundamental changes to their monitoring methodology. Where the old method was based on measuring the improvement of energy use per unit of production, the new method focuses on the energy savings from projects implemented by participating companies. Advocates of the new method claim that it gives a better view of the companies’ efforts to save energy, as it shows their deliberate changes in production processes, whereas opponents emphasise that the relation with ‘real’ energy efficiency is lost. By applying the two methods on the same group of companies, the results can be compared and show to what extent the choice of monitoring method affects the key message to policy makers. Of special interest is the relation between energy and production in the period 2008–2012, a period with large fluctuations in the level of production and energy use as a result of the economic crisis. The data show that energy-saving projects made a significant impact on energy use in the analysis period, although their effect is smaller than that of other factors such as fluctuations in production and in the number of participating companies. The old method shows a result for the period 2005–2013 that is less than half of that of the new method, mainly because of a decrease in efficiency during years of decreasing production. The analysis clearly shows that the two methods do not show the same development of energy efficiency improvement and should be presented as such.