Energy efficiency at the paper mill—dilemma of improvement

The paper industry is heavily using energy during all the phases of the manufacturing process. This is especially the case in Nordic mills where pressure ground wood is the source of fiber. The purpose of this case study is to show how energy consumption behaves on a monthly basis in a Finnish paper mill that has several paper machine lines. The research examines different categories of energy usage, as well as the overall costs. The results show that the monthly energy usage varies significantly. The electricity consumption of the case mill is rather steady, but there is significant monthly variation in steam and natural gas consumption. Moreover, steam and electricity unit costs increased significantly when coming to the end of the research period. The longitudinal case data shows that it is difficult to enhance energy consumption per produced unit at the paper mill. One reason for this is the bleak demand outlook for the end products, which often result in downsizing and closing operations inside the integrated unit.     

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.     

The economy-wide rebound effect from improved energy efficiency in Swedish industries–A general equilibrium analysis

The objective of this paper is to analyse the rebound effect from increased efficiency in industrial energy use in Sweden. Energy efficiency improvements can have significant micro- and macroeconomic effects that hamper the positive effect on real energy savings. To assess the size of the overall rebound effect in the Swedish economy, we apply a computable general equilibrium model. The results show that the economy-wide rebound effect depends on a number of factors, e.g. the extent of the energy efficiency improvement, how the labour market is modelled as well as whether the increase in energy efficiency is combined with a cost or not. We find that the rebound effect following a five per cent increase in energy efficiency in the Swedish industry lies in the 40–70 per cent range. When energy efficiency is only improved in energy-intensive production, the rebound effect becomes even higher. These findings are in line with the results in the literature.     

LEAPs and Bounds—an Energy Demand and Constraint Optimised Model of the Irish Energy System

This paper builds a model of energy demand and supply for Ireland with a focus on evaluating, and providing insights for, energy efficiency policies. The demand-side comprises sectoral sub-models, with a detailed bottom–up approach used for the transport and residential sectors and a top–down approach used for the industry and services sectors. The supply side uses the linear programming optimisation features of the Open Source Energy Modelling System applied to electricity generation to calculate the least-cost solution. This paper presents the first national level model developed within the Long Range Energy Alternatives Planning software to combine detailed end-use analysis on the demand side with a cost-minimising optimisation approach for modelling the electricity generation sector. Through three scenarios over the period 2009–2020, the model examines the aggregate impact on energy demand of a selection of current and proposed energy efficiency policies. In 2020, energy demand in the energy efficiency scenario is 8.6 % lower than the reference scenario and 11.1 % lower in the energy efficiency?+?scenario.     

White certificates — Energy efficiency programs under private information of consumers

Energy efficiency is an objective of public interventions at least since the Public Utility Regulatory Policy Act of 1978 (PURPA). Recently, conservation has received considerable attention in the United States and in particular in the European Union but this time in order to mitigate global warming. Policy measures include regulations at the technical level and the introduction of white certificates in order to force utilities and firms to invest into conservation in a way similar to the already existing renewable energy quota. This paper derives the optimal mechanism if utilities must deal with white certificates facing consumers holding private information. The optimal mechanism has some theoretically interesting features like restricted participation and a discontinuity.     

Energy efficiency networks—what are the processes that make them work?

Energy efficiency networks have received increasing attention over the last few years, not only from national governments (Austria, China, Germany, Sweden, and Switzerland) but also from utilities, consulting engineers, chambers of commerce, and city councils. This paper examines the factors that contribute to the success of such networks by drawing on unique data from two pilot projects involving 34 energy efficiency networks in Germany. The objective is to explain why the companies participating in such networks are much faster at reducing their energy costs than the average in similar businesses. Possible explanations for the success of energy efficiency networks include the following: (1) energy audits make profitable potentials visible; (2) the joint network targets for efficiency and emissions increase the motivation of energy managers, decision-makers, and other staff members; (3) the meetings and site visits of the network participants act like an intensive training course to increase the knowledge of efficient solutions, change decision routines, and lead to trust among the participants; and (4) network participation reduces transaction costs. In our data, we find support for the first, the third, and the fourth explanations, i.e. the audits make profitable potentials visible and networks function as a training course to increase knowledge. And, from the point of view of participants, transaction costs are reduced. The impact of network goals, on the other hand, appears to have both up- and downsides. We conclude that there is the need for further research in order to capture these mechanisms in more detail.     

A Multi—Criteria Decision Making Procedured for the Analysis of an Energy System

In the course of improving and/or designing an energy system,either purely economic criteria,although theoverriding criteria,or purely energy-based criteria,although the emphasized criteria,can not separately handlereal-world situations in a satisfactory manner.The economic effectiveness and the energy efficiency mustbe considered simultaneously to demonstrate the conflicting and non-commensurable characteristics of thesemultiple criteria.An iterative and interactive approach to formulating and solving non-linear multi-criteria decision makingproblems for the analysis of an energy system is proposed.It allows the decision maker(DM)to learn fromthe available information and dynamically change his mind.Criterion functions can be treated as objectivefunctions,as constraints or as something in between by the DM.After a series of iterations and interactiveprocedures,a preferred solution can be made among the non-inferior sets considering thermodynamic criteriaand economic criteria simultaneously.A simple example for design of a heat exchanger is used to illustrate theprocedure.     

Cost-effectiveness of energy efficiency programmes—evaluating the impacts of a regional programme in France

This paper presents the evaluation of a regional energy efficiency programme implemented in two “départements” of France. électricité de France (EDF), a French energy company, provides refurbishment advice and financial incentives to end-users in the residential sector as well as specific training courses and certification to local installation contractors and building firms. Refurbishment measures analysed in this paper are efficient space heating equipment (condensing boilers, heat pumps and wood stoves or boilers), solar water heating systems and the installation of double-glazed windows. A billing analysis based on a survey of programme participants’ energy consumption is used to calculate the energy savings attributed to the programme. In order to receive an economic feedback of this demonstration programme, the evaluation of both saved energy and programme costs is of importance. Detailed knowledge of the programme’s cost-effectiveness is essential for EDF to achieve the saving obligations imposed by the French White Certificate scheme at the lowest cost. Results of this evaluation can support the development and implementation of further energy efficiency programmes with similar characteristics in other regions of France. The cost-effectiveness is determined from the perspective of the programme participant and the society as well as the energy company in charge of the programme. All cost and benefit components are calculated in Euro per kilowatt-hour, which allows a direct comparison of levelized costs of conserved energy with the avoidable costs of the energy supply system.     

Bottom–Up Energy Analysis System (BUENAS)—an international appliance efficiency policy tool

The Bottom–Up Energy Analysis System (BUENAS) calculates potential energy and greenhouse gas emission impacts of efficiency policies for lighting, heating, ventilation, and air conditioning, appliances, and industrial equipment through 2030. The model includes 16 end use categories and covers 11 individual countries plus the European Union. BUENAS is a bottom–up stock accounting model that predicts energy consumption for each type of equipment in each country according to engineering-based estimates of annual unit energy consumption, scaled by projections of equipment stock. Energy demand in each scenario is determined by equipment stock, usage, intensity, and efficiency. When available, BUENAS uses sales forecasts taken from country studies to project equipment stock. Otherwise, BUENAS uses an econometric model of household appliance uptake developed by the authors. Once the business as usual scenario is established, a high-efficiency policy scenario is constructed that includes an improvement in the efficiency of equipment installed in 2015 or later. Policy case efficiency targets represent current “best practice” and include standards already established in a major economy or well-defined levels known to enjoy a significant market share in a major economy. BUENAS calculates energy savings according to the difference in energy demand in the two scenarios. Greenhouse gas emission mitigation is then calculated using a forecast of electricity carbon factor. We find that mitigation of 1075 mt annual CO₂ emissions is possible by 2030 from adopting current best practices of appliance efficiency policies. This represents a 17 % reduction in emissions in the business as usual case in that year.     

Energy efficiency versus gains in consumer amenities—An example from new cars sold in Sweden

Technological developments that increase energy efficiency result in net energy-saving benefits, provided the increased efficiency is not offset by enhanced consumer amenities. This paper analyzes the technology development/consumer amenities trade-off for new cars sold in Sweden between 1975 and 2010. We combine lessons learned from the policies in place and interviews with key actors in the car-purchasing process with statistical modeling of trends in vehicle attributes and technological development. Until 2007, consumer amenities were continuously enhanced, offsetting most of the efficiency gains of technological development; there was no strong policy push toward energy efficiency. In recent years, two major shifts have occurred. First, there has been a shift in the majority of new cars sold, from gasoline-powered engines to diesel engines. Flex-fuel vehicles have also contributed to a decline in the sales-share of pure gasoline engines. The observed shift of fuels, especially to flex-fuels, has been encouraged by policies. Second, after 2007 there have been major technological improvements, while attributes related to consumer amenities have remained flat, reversing the trends so that 77% of the technological development resulted in actual reduction of specific fuel consumption. EU targets, tax reforms, and consumer awareness have contributed to this trend change.     

Seasonal relationship of peak demand and energy impacts of energy efficiency measures—a review of evidence in the electric energy efficiency programmes

While energy efficiency programmes traditionally focus on energy savings, there is also a policy interest in their impact on system peak demand. Examples include demand-side management, integrated resource planning and recent developments to integrate energy efficiency into forward capacity markets. However, there is only limited research on the relationship between peak demand impacts and overall energy savings from efficiency measures, although this relationship can have important bearings on efficiency programmes. This paper reviews utility efficiency programmes in nine jurisdictions in North America and analyses how the seasonal peak-energy relationship differs between commercial and industrial (C&I) and residential sectors, among efficiency measures. In terms of the seasonal difference in peak demand impacts, these programmes show that residential lighting and residential water heating can deliver greater peak savings in weekday early evening winter peak periods. By contrast, C&I lighting and residential appliances make higher peak savings in weekday afternoon summer peak periods. A seasonal difference is more significant in lighting, especially residential lighting, than other measures. The evidence from North America also suggests that space cooling in both sectors and C&I lighting may well make greater peak savings relative to non-peak impacts than other measures during summer peak periods, while in winter peak periods, residential lighting can achieve greater peak savings relative to non-peak impacts. This review highlights the significance of regional electricity use patterns along with climatic and regulatory conditions and indicates how further research may contribute to appropriate electricity demand reduction programme design and monitoring regimes in particular regions.     

Energy efficiency policy governance in a multi-level administration structure — evidence from Germany

The German government has proclaimed energy efficiency to be the ‘first imperative’ for the transformation of the energy system (‘Energiewende’). It has enacted numerous policy measures at federal, federal state and local level which combined should deliver the aspired energy savings. Our contribution reviews the German governance system (multi-level policy coordination and policy feedback through monitoring and verification of energy savings), including the full set of German Sustainable Energy Action Plans (SEAPs). We find that many of the SEAPs put emphasis on CO₂ reduction but neglect a systematic monitoring and verification (M&V) of energy efficiency. A harmonised M&V scheme covering the relevant energy aggregates and energy savings can facilitate policy feedback. Designing the M&V system to the principle of cost-effectiveness can help to save costs and keep information provision and administrative burden in balance. Regarding policy coordination, the German case shows that strong formal coordination structures are a necessary condition for effective policy design, but not a sufficient one. They need to be backed up by informal coordination such as feedback loops or sharing of best practices to add a dynamic dimension.     

Fiscal impacts of energy efficiency programmes—The example of solid wall insulation investment in the UK

Programmes supporting the installation of energy efficiency measures typically incur a cost in the form of subsidies as well as lost VAT income due to reduced energy consumption. Those costs are to some extent offset by the tax receipts and other revenue streams generated as a result of the activities promoted under the programme. In this paper we analyse the budgetary effects of energy efficiency programmes focusing on the example of solid wall insulation in the UK. Three distinct subsidy options have been defined and modelled for the purpose of this research including two policies with varying degrees of direct subsidy and a low interest loan scheme. Our analysis shows that a significant amount of the cost of a scheme funding solid wall insulation would be offset by increased revenues and savings. A loan scheme, due to the high leverage, achieves not only budget neutrality but generates additional revenue for the Exchequer.     

Beyond economics—understanding the decision-making of German small private landlords in terms of energy efficiency investment

The German government aims to achieve virtually climate-neutral building stock by 2050 to tackle climate change. To realise this goal, comprehensive policy packages based on neoclassical economic theory are in place to foster energy efficiency investment. However, in the building sector, there is increasingly a gap between this aspiration and the reality. It is claimed that one of the main reasons for this is that the existing policy framework fails to address the specific characteristics and needs of different groups of building owners. This is a particular challenge in Germany, where 80% of all dwellings are owned privately and 37% are rented out by small private landlords (SPL). Despite the significant numbers of SPL, they often follow black box decision-making processes when considering energy renovations. In this study, the author uses an explanatory model to understand the decision-making processes of SPL, combining theoretical aspects from different research disciplines. This model was applied to a low-demand housing market in a neighbourhood in the Ruhr area. Eighteen semi-structured interviews (each lasting between 37 and 115 min) were conducted, demonstrating that in addition to economic factors, the values, beliefs, norms and routines of SPL—as well as their personal capabilities and contextual factors—play an important role in their decision-making. Based on the findings, recommendations are made for enhancing the effectiveness of existing energy efficiency policies and other supporting instruments (e.g. tenancy law and social legislation), tailored to the specific needs of SPL.     

Energy consumption in iodine section of I–S: Effect of operating parameters of electro-electrodialysis on overall efficiency of cycle

Reducing heat demand for increasing concentration of HI in the HI_x solution of the iodine circuit of the Iodine–Sulphur cycle is considered the most effective way of increasing efficiency of the cycle. Electro-electrodialysis has emerged as an energy efficient way of increasing the HI_x concentration above azeotropic value. Simulation of the iodine circuit consisting of an EED, a flash and a decomposer was carried out in Aspen Plus™ simulation platform to study the effect of EED current density and outlet HI concentration on the efficiency of the cycle. Efficiency reduced strongly with increase in current density. For EED current density of 5 A/dm², maximum efficiency was ∼35.9% and the optimal range of EED catholyte's exit HI concentration, iodine-free, mole fraction was 0.19–0.21. Simulation results showed that reducing EED resistance was most effective, among all EED parameters, in increasing the cycle's thermal efficiency and if the EED resistance is completely eliminated the thermal efficiency value would increase to 39.4%.     

Can an emission trading scheme promote the withdrawal of outdated capacity in energy-intensive sectors? A case study on China's iron and steel industry

Outdated capacity and substantial potential for energy conservation are the two main features of energy-intensive sectors in developing countries. Such countries also seek to implement market-based options to further control domestic carbon emissions as well as to promote the withdrawal of outdated capacity and upgrade production level. This paper presents a quantitative assessment of the emission trading scheme (ETS) for China's iron and steel industry. The diverse array of normal and outdated capacities was modeled in a two-country, three-good partial equilibrium model. Simulation results show that the abatement potential can be underestimated if the energy-saving effects that result from emission abatement are not considered. In the scenario analysis, we demonstrated that the free allocation of allowances can cause a competitiveness distortion among domestic normal and outdated capacities. Given the government's intention to promote outdated capacity withdrawal and production-level upgrading, an output-based allocation approach is strongly suggested for China's iron and steel sector.     

Risk Analysis in Renewable Energy： Assessment of the Vulnerability of the Environment and Community

As a result of recent accidents, society is becoming more conscious and concerned about the risk that are under to the environment and communities. A proposal of assessment of the vulnerability of the environment and community is presented here under a holistic perspective using fuzzy logic as a formal tool. An internal factor of the risk of a system under a given threat is assessed. Risk is considered as the union between the threat and the vulnerability of the environment and community. This approach shows that the reduction in either or both of them makes a reduction in the risk content as well. The main purpose of this proposal is not to obtain a single value as output; in fact the result is a map which can contribute to the different areas of the community in decision making.