Industrial energy efficiency improvement through cogeneration: A case study of the textile industry in Thailand

Natural gas cogeneration presently appears to be a promising alternative to satisfy the energy utility requirement of the process industries thanks to the favorable energy policy of the Government of Thailand. In this paper, we detail a case study in a textile factory where use of gas-turbine cogeneration with a post-combustion heat recovery system is found to be the most suitable solution. This system has not only the highest thermal efficiency, but it can also provide flexibility in operation. Financial analysis of the most suitable cogeneration configuration provides the net present value (NPV), pay-back period (PBP) and internal rate of return (IRR) with values of 310 million Baht, 5.3 years and 26.6%, respectively. The thermal-matching option is not found to be attractive because the sale price of electricity to the state electric utility is not high enough to absorb the additional investment required for the prime mover. Incorporation of an absorption chiller in the cogeneration system does not bring in any additional advantage as there is no excess waste heat available in this factory.     

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.     

The investment criteria of the Swedish electricity industry

This article examines the investment criteria used by the Swedish power industry. The so-called combined criterion has several practical advantages. One is that it facilitates consideration of the value of an increase in the reliability of the electric power system with respect to energy and to capacity simultaneously. Another is that it can be used to evaluate expansion and replacement investments as well as investments in pure reserves. The dimensioning of energy reserves is also discussed. The Swedish power industry use an evaluation of the costs of an energy shortage that is the same regardless of the size of the shortage. The effects of assuming that the costs of a shortage increase with the size of the shortage are studied and estimates of the optimal size of the energy reserve have benn made under alternative assumptions. These estimates indicate that the Swedish energy reserve may be excessive at present.     

Analysing industrial energy use: a case study of the Swedish forest industry

The purpose of this study is to demonstrate an analytical method that can be used to incorporate development in industrial sub‐sectors in national energy systems modelling analysis. The method is illustrated by a case study of the Swedish forest industry. The case study consists partly of a detailed industrial sub‐sector scenario analysis of the Swedish forest industry and partly of an analysis of the usefulness of incorporating such a detailed treatment of the industry in energy system modelling analyses. The sub‐sector analysis results in calculated energy and material flows for each scenario. The energy systems analysis results in a comparison of modelling results for the Nordic energy system, with and without the more detailed sub‐sector analysis of the Swedish forest industry. Copyright © 2002 John Wiley & Sons, Ltd.     

Improving policy making through government–industry policy learning: The case of a novel Swedish policy framework

Climate change poses an unprecedented challenge for policy makers. This paper analyzes how industry sector policy expertise can contribute to improved policy making processes. Previous research has identified that policy making benefit by including non-governmental policy analysts in learning processes. Recent climate and energy policy developments, including amendments and the introduction of new initiatives, have rendered current policy regimes as novel to both governments and the industry. This increases business investment risk perceptions and may thus reduce the effectiveness and efficiency of the policy framework. In order to explore how government–industry policy learning can improve policy making in this context, this article studied the Swedish case. A literature survey analyzed how policy learning had been previously addressed, identifying that the current situation regarding novel policies had been overlooked. Interviews provided how industrial actors view Swedish policy implementation processes and participatory aspects thereof. The authors conclude that an increased involvement of the industry sector in policy design and management processes can be an important measure to improve the effectiveness and efficiency of climate and energy policies.     

Sustainable energy transition: the case of the Swedish pulp and paper industry 1973–1990

By employing historical case study methodology, this paper examines the transition towards renewable energy and increased energy efficiency in the Swedish pulp and paper industry (PPI) during the 1970s and 1980s. Between 1973 and 1990, CO₂ emissions were cut by 80 % in this sector, and this was mainly achieved by substituting away from oil to biofuels in the form of by-products from the pulp manufacturing process. The CO₂ reduction was also a result of energy efficiency improvements and increased internal production of electricity through back-pressure turbine power generation. Sweden was highly dependent on oil at the advent of the first Oil Crisis in 1973, and the increased oil prices put pressure on the Swedish government and the energy-intensive PPI to reduce this oil dependency. Of central importance for the energy transition was the highly collaborative strategy of the PPI, both internally among pulp mills as well as between the sector as a whole and the corporatist Swedish state administration. The Swedish government chose a proactive strategy by emphasizing knowledge management and collaboration with the industry along with the substitution of internal biofuels for oil. The transition was also characterized by a strong focus on unutilized potentials in the PPI; a previous waste problem now could be transformed into energy savings and improved energy efficiency. Energy taxes and fees also played an important role in Swedish energy policy during the 1970s and the 1980s. All in all, the study illustrates the central role of governments and their ability to push industrial sectors into new technological pathways through a wide palette of mutually reinforcing policy instruments. The results further point at the importance of a more holistic understanding of the interplay between different policies and their impacts in the longer run.     

Energy demand,economic growth,and energy efficiency—the Bakun dam-induced sustainable energy policy revisited

In embarking on a dynamic course of economic development and industrial modernism, Malaysia sees the need to increase its electricity generation capacity through the development of a mega-dam project—the Bakun dam. Although hydroelectricity generation offers one of the benign options in accommodating the increasing energy consumption per capita in Malaysia, it is argued that the construction of Bakun’s dam which involves a complete and irreversible destruction of 69,640 ha of old forest ecosystem remains a difficult and uncertain endeavour. It is further argued that apart from mega-dam technology, there are also other means to orchestrate a sustainable energy system in Malaysia. These include the implementation of demand and supply initiatives, such as the deployment of energy saving technology or influencing behavioral change towards a sustainable energy consumption pattern.     

Energy efficiency policy impact in India: case study of investment in industrial energy efficiency

The objective of this paper is to identify the effectiveness of energy policy and capital investment in energy efficiency technologies in the industrial sector in India. Indian energy policies relating to industrial energy efficiency over the past 25 years are briefly reviewed, and a comparison study of these energy efficiency policies and strategies in India and China has been carried out. Interviews were conducted with a number of government policy-making institutions and a national industrial development bank. The accounts of 26 industrial enterprises which applied and used a loan of the Asian Development Bank were audited for data collection. Field-visits to seven industrial entrepreneurs were undertaken in a case study. Methodologies used in this study include documentation, cross-country reviews on energy policies, questionnaire design and distribution in the industrial sector, and on-site auditing of energy efficiency technologies. This paper concludes that current energy policies and strategies in India need further improvement to promote energy efficiency investment and energy efficiency technology development in the industrial sector. This paper will interest those policy makers and industrial entrepreneurs who are willing to finance energy efficiency projects and improve energy efficiency in the industrial sector.     

Assessment of energy efficiency performance measures in industry and their application for policy

Energy efficiency improvement is a basic yet significant way of addressing both energy security and environment concerns. There are various measures of industrial energy efficiency performance, with different purposes and applications. This paper explores different ways to measure energy efficiency performance (MEEP): absolute energy consumption, energy intensity, diffusion of specific energy-saving technology and thermal efficiency. It discusses their advantages and disadvantages, and roles within policy frameworks. Policy makers should consider the suitability of MEEP based on criteria such as reliability, feasibility and verifiability. The limitations of both energy intensity and necessity of broader all-inclusive indicators and technology diffusion indicators are also discussed. A case study on Japan's iron and steel industry illustrates the critical role of proper boundary definitions for a meaningful assessment of energy efficiency in industry. Depending on the boundaries set for the analysis, the energy consumption per ton of crude steel ranges from 16 to 21 GJ. This paper stresses the importance of a proper understanding of various methods to assess energy efficiency, and the linkage with policy objectives and frameworks. Possible next steps for improvement of MEEP, such as database development, were also discussed.     

A Danish case: portfolio evaluation and its impact on energy efficiency policy

A political agreement from 2005 stated that an evaluation of the entire Danish energy efficiency policy portfolio must be carried out before the end of 2008, with the aim to assess the following: (1) Is the policy portfolio sufficient to meet the energy efficiency targets? (2) Do the policies enable the national goals to be met in a cost-effective manner? (3) Is the overall design of the policy portfolio appropriate? The evaluation gave recommendations on how to improve and develop the portfolio, mainly using cost-effectiveness as criteria. The evaluation was completed in December 2008, and this paper presents the main findings and the subsequent impact on Danish policy. A key lesson learned is the importance of including all energy efficiency policies in the evaluation. Examining the entire portfolio of policies (as opposed to only selected policies) gave way to findings that would otherwise not have been captured. With its broad perspective, the evaluation found that the policy instruments prioritised the commercial and industrial sectors less than the household and public sectors. The recommendations made by the authors contributed to the implementation of new taxes for the commercial and industrial sectors together with the reform of the Electricity Saving Trust to a Centre for Energy Savings charged with energy savings within all sectors, except transport—both which have been important steps towards a more cost-effective solution.     

Institutional work and climate change: Corporate political action in the Swedish electricity industry

This paper utilises qualitative methods to examine factors that influence corporate political actions (CPA) linked to climate policy in the Swedish electricity industry. CPA strategies are examined in connection to two policy instruments—the EU emission-trading scheme and the Swedish electricity certificate scheme. These instruments are the main drivers of climate-related investments in the sector. The study treats CPA as a form of institutional work and examines reasons for companies to seek to maintain/disrupt institutions. The study finds that CPA is driven primarily by the need to manage external resource dependencies and that where risks are more acute, companies are more likely to seek to disrupt regulative institutions. However, the study also shows that respondents’ appraisals of policy instruments are based on a convergent set of shared values (cognitive institutions) that form the basis of CPA and which actors do not seek to disrupt despite resource-based risks. CPA is thus characterised as a means to transmute cognitively held values and beliefs into regulative institutions. The study concludes with implications for policymakers and theory.     

How do energy & environmental policy goals and instruments affect electricity demand? A framework for the analysis

Several measures in the environment and energy realms are currently being implemented in the EU and its Member States. Three of these instruments, with an impact on the electricity market, are demand side management activities, promotion of electricity from renewable energy sources and measures aimed at the mitigation of Greenhouse Gas (GHG) emissions. The objective of this paper is to analyse the impact of these energy efficiency and environmental goals and instruments on electricity demand and costs to electricity consumers when electricity markets are either national or international and when those policies are implemented by a national or an international institution. The paper shows that the effectiveness and impact of those measures largely depends on the demand response in the electricity market. An additional conclusion is that, when either the electricity markets or the support policies are national, distortions may occur, i.e. the reductions in electricity demand in one country may be subsidised by consumers or taxpayers in another country.     

Industrial electricity demand for Turkey: A structural time series analysis

This research investigates the relationship between Turkish industrial electricity consumption, industrial value added and electricity prices in order to forecast future Turkish industrial electricity demand. To achieve this, an industrial electricity demand function for Turkey is estimated by applying the structural time series technique to annual data over the period 1960 to 2008. In addition to identifying the size and significance of the price and industrial value added (output) elasticities, this technique also uncovers the electricity Underlying Energy Demand Trend (UEDT) for the Turkish industrial sector and is, as far as is known, the first attempt to do this. The results suggest that output and real electricity prices and a UEDT all have an important role to play in driving Turkish industrial electricity demand. Consequently, they should all be incorporated when modelling Turkish industrial electricity demand and the estimated UEDT should arguably be considered in future energy policy decisions concerning the Turkish electricity industry. The output and price elasticities are estimated to be 0.15 and − 0.16 respectively, with an increasing (but at a decreasing rate) UEDT and based on the estimated equation, and different forecast assumptions, it is predicted that Turkish industrial electricity demand will be somewhere between 97 and 148 TWh by 2020.     

Communications on energy: Growth and overcapacity in the UK electricity industry

In the face of a reduced growth rate in the demand for electricity, the UK seems to be committing itself to an excessive increase in generating capacity. This course of action, combined with the endemic overcapacity problem in the UK electricity industry over the last decade is likely to intensify the already strong institutional pressures for keeping electricity demand high. Raphael Papadopoulos considers the implications of the plans for expanded electricity supply.     

Renewable energy policy and electricity market reforms in China

The article examines the potential effectiveness of the renewable energy policy in China and its regulatory Law framework. It frames the option of renewable energy technology within the background of the long-lasting electricity problems that China has faced including serious supply shortages, reliance on coal, and severe environmental contamination. Its dual administrative and ownership system based on state and privately owned industry is discussed together with the market reform measures adopted in the sector. Current renewable energy policy is analysed, and the scope of the 2005 Renewable Energy Promotion Law is investigated. This is conducted within the context of the electricity sector reform that China adopted, and its effects upon the prospects of encouraging as well as expanding the development of renewable energy. This study draws upon primary information collected from interviews with stakeholders on the policy adequacy, and identifies three main types of shortcomings that have interfered with a more successful expansion of renewable energy in China.     

Modeling climate feedbacks to electricity demand: The case of China

This paper is an empirical investigation of the effects of climate on the use of electricity by consumers and producers in urban and rural areas within China. It takes advantage of an unusual combination of temporal and regional data sets in order to estimate temperature, as well as price and income elasticities of electricity demand. The estimated positive temperature/electric power feedback implies a continually increasing use of energy to produce electric power which, in China, is primarily based on coal. In the absence of countervailing measures, this will contribute to increased emissions, increased atmospheric concentrations of greenhouse gases, and increases in greenhouse warming.     

Energy efficiency in Swedish industry: A firm-level data envelopment analysis

This paper assesses energy efficiency in Swedish industry. Using unique firm-level panel data covering the years 2001–2008, the efficiency estimates are obtained for firms in 14 industrial sectors by using data envelopment analysis (DEA). The analysis accounts for multi-output technologies where undesirable outputs are produced alongside with the desirable output. The results show that there was potential to improve energy efficiency in all the sectors and relatively large energy inefficiencies existed in small energy-use industries in the sample period. Also, we assess how the EU ETS, the carbon dioxide (CO₂) tax and the energy tax affect energy efficiency by conducting a second-stage regression analysis. To obtain consistent estimates for the regression model, we apply a modified, input-oriented version of the double bootstrap procedure of Simar and Wilson (2007). The results of the regression analysis reveal that the EU ETS and the CO₂ tax did not have significant influences on energy efficiency in the sample period. However, the energy tax had a positive relation with the energy efficiency.     

Implications of a US electricity standard for final energy demand

This paper analyzes the emissions impact of an emissions intensity standard (metric tons of CO₂ per MWh of electricity) for the US power sector on US final energy demand — i.e. the manufacturing, residential, commercial, and transportation sectors. An emissions intensity standard, although geared towards the power sector, will have implications for these other sectors of the economy through its effect on economy-wide energy prices. Using a hybrid energy-economy simulation model (CIMS), we find the effect on aggregate emissions from final demand to mostly be small. However, after disaggregating final demand, we find significant changes in CO₂e emissions for several of sub-sectors. Given that emissions reductions in final energy demand are needed alongside power sector reductions for the US to achieve deep emissions cuts, our findings provide needed insight as to whether these eventual reductions will be helped or hindered by a US electricity standard.     

Scenarios of energy demand and efficiency potential for Bulgaria

The paper presents aggregated results on macroeconomic and final energy demand scenarios developed within the Bulgarian Country Study on Greenhouse Gas Emissions Mitigation, supported by US Country Studies Program. The studies in this area cover five main stages: (1) outline of “Basic” and “Energy Efficiency” socio-economic and energy policy scenarios (2) modeling of macroeconomic and sectoral development till 2020; (3) expert assessments on the technological options for energy efficiency increase and GHG mitigation in the production, transport and households and services sectors; (4) bottom-up modeling of final energy demand; (5) estimation of sectoral and overall energy efficiency potential and policy. Within the Bulgarian Country Study, the presented results have served as a basis for the final integration stage “Assessment of the Mitigation Policy and Measures in the Energy System of Bulgaria.”     

Structural change and energy efficiency in industry

The change in the ratio of energy consumed to industrial production is examined over the years 1968–1980. Changes in the composition of industry are analysed, creating a better picture of movements in physical efficiency of energy use. The medium-term trends show the significance of the 1973 oil crisis, the effects being contrary to those of intuition. The implications of the two recessions for efficiency and industrial structure are described in detail. The role of demand, often relegated to an incidental consideration, is brought to the fore. In the years following 1973 it appears more important than ex post substitution in production, and with this comes a particular implication for the use of aggregate production functions.