UNIDO Industrial Energy Efficiency and

Technology Programme

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Presented by:Nguyen Khac Tiep

Industrial Development OfficerIndustrial Energy Efficiency

UNIDO

ECOWAS CREEE Workshop12-13 April 2010

Ouagadougou, Burkina Faso

Structure of the Presentation

I. Energy Use and EE in IndustryII. UNIDO’s Approach and Programme II. UNIDO’s Approach and Programme

on EE in IndustryIII. IEE in West Africa

Context

� Globally, industry has the potential to reduce its energy intensity and emissions by up to 26–32%, providing a 8-12% reduction in total energy use and CO2

emissions. Potentials are above average in DCs and TEs

� Industrial energy use can be up to 50% of the total national energy use

� EE is one of the cheapest ways of creating more energy available for the country

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country

� Global growth of industrial energy demand and CO2 emissions is concentrated in emerging economies

� Energy efficiency improvements can increase competitiveness and growth

� Governments are increasingly aware, and concerned about, both energy security and climate change � assistance is necessary to accelerate development of capacity to respond effectively

Global CO2 Emissions by Industrial Sector

Iron & steel

30%

Paper, pulp and

print

Machinery

2%

Non-ferrous

metals

2%

Other

17%

Non-metallic

minerals

26%

Chemical and

petrochemical

16%

Food and

tobacco

4%

print

3%

Source: IEA 2008

Long-Term CO2 Emissions Reduction Potentials in Industry(compared to Baseline, 2050)

(IEA, Technology Transitions for Industry, 2009)

Fuel switching 20-25%

Scenario Framework:

Global emissions -50%Industrial emissions -20%

Efficiency 50-60%

CCS 25-30%

20-25%

Efficiency (on top of baseline) constitutes half of the potentialThis requires a doubling of the technical efficiency improvement rate

Industrial emissions -20%

Industrial Energy Use in Developing Economies� Characteristics of Developing Economies:

– Industrial energy use can be more than 50% of the total and can produce supply problems

– Lead global growth in both industrial energy use and carbon-related emissions

– Emerging industrial infrastructure requires many new facilities, rapidly built & expanded

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rapidly built & expanded– Includes substantial growth in energy intensive sectors

� It is much more cost-effective to build in energy efficiency the first time than retrofit it later

� In industry, a missed opportunity for energy efficiency may not reoccur- for decades or at all until the original installation fails or becomes obsolete

UNIDO’s Three inter-related thematic priorities

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Poverty reduction through productive activities

Trade capacity building Energy and Environment

promoting access to energy for productive uses, and supporting patterns of energy use by industry that are in line with a low-carbon

developmental path

UNIDO’s Energy and Climate Change Programme

About UNIDO’s Energy ProgrammeTechnical Co-operation� Industrial Energy Efficiency� Renewable energy technologies for industrial applications� Renewable Energy for Productive Uses

Service areas

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Service areas� Policy advice and development support – international forum function � Capacity building for institutions, enterprises & market players in DCs and TEs

� Technology transfer

Global Forum� Co-convener of Technology Transfer under UNFCCC Process� International Technology Centres � Partnerships, Networks and global events: UN Energy, SG energy advisory group

UNIDO Industrial Energy Efficiency Project Portfolio

21 countries:AngolaArgentinaBrazilChina EcuadorEgyptIndiaIndonesia

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IndonesiaIranMalaysiaMexicoMyanmarMoldovaPhilippinesRussiaSri LankaSouth AfricaThailandTurkeyViet NamUkraine

Total portfolio value

500 million USD over the period 2010-2014

Total UNIDO Budget65 million USD

GEF funded projects

UNIDO is an Implementing Agency of the Global Envir onment Facility

Other Energy Efficiency projects

Projects under development

UNIDO Industrial Energy Efficiency Program

Focus Areas1. Energy management system standards

2. Systems optimization (steam system and process heating, compressed air, pumps, fans, etc.)

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3. SMEs

Why?� Energy management prerequisite for sustainable and continual improvement

of energy efficiency and performance in industry

� EMS and systems optimization are very cost-effective

� Limited policy attention so far for all three topics

� Requires in-depth knowledge, in line with UNIDO strengths

Taking a Comprehensive ApproachGoal: integrate energy efficiency projects into existing

management structures for continual improvement

Elements:1. Energy management standard 2. Training (energy management, system optimization)2. Training (energy management, system optimization)3. Capacity building- create cadre of system experts able to

develop IEE projects, and train others4. Access to tools to identify opportunities and document

compliance5. Recognition of companies that make outstanding efforts to

improve their energy efficiency6. Agreements with industrial sectors that establish plant-specific

energy efficiency targets

Typical Project Structure (key issues)

�Policy support�Capacity building (industry and government

awareness, management support)awareness, management support)�Pilot projects (technology/supply chain)�Financing (access, capacity building)

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Energy Management Systems� Energy management systems standards have proven successful in

delivering incremental energy and cost savings compared to baseline operations: 1-2% annual incremental efficiency gains in industry

� Relevant and applicable for large industries and SMEs, no matter what the technological and production processes are

� Gets management involved, engrain measurement and monitoring

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� Gets management involved, engrain measurement and monitoring

� Energy management system standards provide best-practices based, structured and comprehensive guidance on how to integrate energy efficiency into daily management practices using the well-known “plan-do-check-act” approach (ISO 9000, 14000, etc.)

� Complementary policy-driven supporting and capacity building programs are needed

� ISO 50001, EnMS available mid 2011

System optimization: Why a system approach matters in industry

� Steam and electric motor-driven systems account for more than 50% of final manufacturing energy use worldwide

� In industry energy efficient equipment per se does not guarantee energy

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� In industry energy efficient equipment per se does not guarantee energy savings when it is part of a bigger system

� System approach involves looking at how components function together to deliver a certain end-use

� Energy efficiency improvement potential through system optimization is on average 15-30%

UNIDO Industrial Energy Efficiency ProgramSystem optimization: Why a system approach matters in industry

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Courtesy of Don Casada, Diagnostic Solutions and US Department of Energy

15 kW motor efficiency = 91%

Combined motor & pump efficiency = 59% System efficiency = 13%

UNIDO China Motor Systems Energy Conservation Program

System / facilityTotal Cost

[$US]Energy savings

[kWh/year]Payback Period

40 GWh energy savings identified ���� 23% average gain per systemPayback less than 2 years

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System / facility[$US] [kWh/year] Period

Compressed air/forge plant 18,600 150,000 1.5 years

Compressed Air/machinery 32,400 310,800 1.3 years

Compressed air/tobacco 23,900 150,000 2.0 years

Pump system/ hospital 18,600 77,000 2.0 years

Pump system/ pharmaceuticals 150,000 1.05M 1.8 years

Motor systems/ petrochemicals 393,000 14.1M 0.5 years

SMEs�25% of global industrial energy use�Even higher share of the efficiency potential�Typically: bricks, lime, glass, ceramics, food

and beverage, foundries, paper mills etc.and beverage, foundries, paper mills etc.�Key to success is a focus on efficiency as

part of a package including the bottom line, productivity, quality

�UNIDO preparing technical guides for SME to implement ISO 50001

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SMEs Energy Conservation and GHG Emission Reduction in

Chinese Township and Village EnterprisesGoal: Reduce GHG emissions of China TVE by increasing utilization of EE technologies and products in the brick, cement, metal casting and coking sectors

Immediate objectives included:

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Immediate objectives included:� Building technical capacity for EE and product quality improvement in TVEs � Completed 2007 � USD 8 M GEF funding, USD 4 M revolving fund� USD 150 M co-financing investment� Creating special access to commercial financing for TVEs in the four sectors to

undertake energy conservation and GHG emission reduction activities � Capacity building, investment project development � Expanding application of best practices regulatory reform to the national level

Energy Conservation and GHG Emission Reduction in Chinese Township and Village Enterprises – Phase II

GEF Funding: 8 million USDSome achievements of the project

Target ActualTarget Actual

85,000 tons CO2/yr emission reduction from 8 pilot-demo projects

193,000 tons CO2/yr emission reduction from 8 pilot-demo projects

10.55 million USD co-funding 150 million USD co-funding

100 feasibility studies for self-replication projects developed by project end

101 self-replication projects implemented by project end � 714,000 tons CO2/yr reduction

Direct GHG emission reduction = 4.5 million tons CO 2 Indirect GHG emission reduction = 30 million tons C O2Project results strongly influenced China’s 11 th Five Year Plan’s 20% EE targetGoal is to re-produce this model through the UNIDO GEF project for India

UNIDO Program on Renewable Energy Technologies for Industrial Applications

� Solar thermal for industrial process heat

� Biomass for industrial process heat

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� Bamboo biorefineries

� Heatpumps

UNIDO Program on RET for industrial applications

Solar thermal energy for industrial heatIndustrial sectors and processes with the greatest potential for solar thermal uses

Start with Dairy as part of the India GEF project

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Source: Weiss et al, 2005, Market potential and sys tem designs for industrial solar heat applications

Biomass – Bamboo

� Bamboo accounts for 10 % of wood harvest

� Rapid growth

� Versatile: materials, energy and food: a proven biorefinery conceptbiorefinery concept

� Significant UNIDO activities in many countries on three continents, GEF Project in Sri Lanca

� A successful project requires supply, processing, markets and a supporting infrastructure

� Important UNIDO activities in Assam; strong interest abroad to build on the Indian model

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� Significant but Unevenly Distributed Energy Resourc es

� Very Low Access and Energy Consumption Rates

� Heavy Dependence on Fossil Fuels for Commercial

West Africa: The Energy Context

� Heavy Dependence on Fossil Fuels for Commercial Energy

� Energy efficiency not prioritized

� Renewable Energy Potential Huge but largely untappe d

� Weak Policy and Institutional Linkages

GEF Strategic Programme on West Africa- Target Countries -

Benin Guinea Bissau

Burkina Faso Liberia

Burundi * MaliBurundi * Mali

Cape Verde Mauritania

Chad * Niger

Côte d'Ivoire Nigeria

The Gambia Senegal

Ghana Sierra Leone

Guinea Togo

GEF GRANT: $ 45 MILLION

* additionally, Burundi und Chad have requested to be part of the programmatic approach.

GEF Strategic Programme on West Africa

KEY OBJECTIVES:

� Taking a programmatic approach to promote renewable energy and energy efficiency projects at the national / regional level in countries of the regionregional level in countries of the region

� Scaling up access based on renewable energy and promoting energy efficiency measures in industrial, households and public sectors

� Creating markets to catalyze private sector investments and public-private partnerships

STRATEGIC PRIORITY AREAS:

� Promoting renewable energy based mini-grids for enhancingaccess and supporting productive capacities

GEF Strategic Programme on West Africa

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� Promoting sustainable energy production from bioenergy

� Promoting energy efficiency in the residential and commercial buildings, and industrial sectors

� Promoting sustainable innovative systems for urban transport

SPWA - GEF Funds for West African CountriesNumber of Countries participating: 18

SIERRA LEONE, US$ 2mio CAPE VERDE, US$ 2mio

BENIN, US$ 2mio

BURUNDI, US$ 2mio

BURKINA FASO, US$ 2mioTOGO, US$ 2mio

THE GAMBIA, US$ 2mio

SENEGAL, US$ 2mio

NIGERIA, US$ 11.3mio

NIGER, US$ 2mio MAURITANIA, US$ 2mio MALI, US$ 2mio

GHANA, US$ 2mio

GUINEA, US$ 2mio

LIBERIA, US$ 2mio

GUINEA-BISSAU, US$ 2mio

CHAD, US$ 2mio

COTE D'IVORE, US$ 2mio

CAPE VERDE, US$ 2mio

Allocation of Resources under the SPWA according to the four Priority Areas

(Total amount of US$ 45.3 million) Energy Efficiency in

Industry, Refrigeration Appliances and

Sustainable UrbanTransport

US$ 11,900,000

Renewable Energy Technologies for Modern Energy

ServicesUS$ 5,700,000

Additionally,

Mini-grids based on Renewable Energy for

Rural ElectrificationUS$ 16,900,000

Energy Efficient Lighting in Public and

Residential SectorsUS$ 10,100,000

Values including Agency fees

4 Projects

11 Projects

6 Projects

5 Projects

Additionally, one project on

Regional Coordination

and Cooperation is included in the

SPWA

US$ 700,000

IEE for ECOWAS

� Awareness raising on benefits of EE, EnMS, and Syst em Optimization, sharing of information and experience

� EE strategy

� Training of regional IEE experts on EM and System O ptimization

� A core of experts at the ECOWAS CREEE

� Pilot projects on EM and System Optimizations in po tential sub-sectors: Cement and Brewery

Thank you for your attention!

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www.unido.org

K.Nguyen@unido.org

List of selected projects for the SPWA (I)

The following list of projects have been approved or are in the process of being approved by GEF – the total amount of GEF

funding for all 27 projects will be US$ 45 million.

Strategic Focus: Promotion of Renewable Energy Tech nologies for Modern Energy Services

Cape Verde UNIDO Promoting renewable energy and energy efficiency on the Brava Island

Guinea UNEPPromotion of renewable energy technologies (solar, wind, bioenergy) for electrification and energy services

Guinea-Bissau UNEP Promotion of renewable energy technologies (solar, wind, etc.) for productive uses

Niger UNDPNational Reference Programme of Access to Modern Energy Services with Low Carbon Emissions (Programme PRASE)

List of selected projects for the SPWA (II)

Strategic Focus: Mini-grids based on Renewable Ener gy for Rural Electrification

Chad UNIDOPromotion of Renewable Energy based mini-grids for rural electrification and productive uses in Chad

Cote d'Ivoire UNIDOPilot electrification project of communities through mini-grids based on RE / photovoltaic system

The Gambia UNIDO Promoting renewable energy based mini grids for productive uses in rural areas in The Gambia

Guinea UNIDO Installation of multipurpose mini-hydro power systems (for provision of energy, irrigation, etc.)

Guinea-Bissau UNEPPromotion of renewable energy technologies based mini-grids (small hydro / biomass, etc.) for rural electrification

Liberia UNIDO Installation of multi purpose min-hydro infrastructure (energy, irrigation, etc.)

Nigeria UNIDOMini-grids based on Renewable Energy (hydro, solar and biomass) sources to augment rural electrification

Sierra Leone UNIDO Promoting mini grids based on Small Hydropower

Burkina Faso UNDP Promotion of Jatropha Curcas as a resource of Bioenergy in Burkina Faso

MaliUNEP/ AfDB

Bioenergy Utilisation (electrification and energy services etc. project

Mali UNDP Promotion of the use of agrofuels from the production and use of Jatropha oil in Mali

List of selected projects for the SPWA (III)

Strategic Focus: Energy Efficient Lighting in Publi c and Residential Sectors

Burundi WB Energy Efficient Lightning Project in Burundi

Cote d'Ivoire UNEP Promotion of energy efficiency in public lighting programme

Mauritania WB Mauritania CFL deployment Program

Mauritania UNEP Promotion of energy efficiency in public lighting

Nigeria UNDP Promoting Energy Efficiency in Residential and Public Sector

Togo WB Togo - Efficient Lighting Program

Strategic Focus: Promoting Energy Efficiency in Ind ustry, Refrigeration Appliances and Sustainable Urban Transport

Benin WB Energy Efficiency Program in Benin

Burkina Faso WB Ouagadougou Transport Modal Shift in Burkina Faso

Ghana UNDPPromoting of Appliance Energy Efficiency and Transformation of the Refrigerating Appliances Market in Ghana

Nigeria WB Nigeria Urban Transport Project

Senegal WB PROGEDE II – Eco-village

Regional Coordination and Cooperation

Sub-regional UNIDOMSP on knowledge management, capacity building including training, coherence and coordination

Indicators for selected West African Countries: