1. INSTITUTE FOR Industrial Productivity Sharing best practices for low carbon enterprises e email@example.com w iipnetwork.orgPathways to Energy Management Programmes -‐ Gaining through Saving IPEEC pre-‐sessional workshop EE Global, Orlando, FL Amélie Goldberg March 27, 2012
2. PresentaFon overview • About IIP • IIP’s relevant research • The IEA-‐IIP Policy Pathway • Energy Management Programmes (EnMPs) • Importance of drivers & implementaFon support • The Policy Pathway: 10 steps to delivering EnMPs • EnMS in the Supply Chain • Key messages and Future Pathways
3. IIP at a glance… The Ins(tute for Industrial Produc(vity provides companies and governments with the best energy eﬃciency prac(ces to reduce energy costs and prepare for a low carbon future. • Sharing and disseminaFng best pracFces, The IIP team and Strategic Advisory Group including bridging the gap between government policy and industry implementaFon • PiloFng scalable projects for GHG miFgaFon • FacilitaFng the creaFon of innovaFve ﬁnancial mechanisms
4. IIP’s Relevant Research 1. Promo(ng EnMS through Programmes, Incen(ves and Support – Experiences Denmark, Sweden and Ireland – Lessons learnt and technical assistance for EnMP implementaFon in China 2. Policy Pathway – IEA & IIP Partnership – Policy Pathways designed to help implement IEA’s 25 Energy Eﬃciency RecommendaFons – Case studies of good pracFce, involvement of internaFonal experts – Expert Workshop 30 September 2011 – Publica3on April 2012 3. Supply Chain Ini(a(ves for Industry (forthcoming) – Promising method of sFmulaFng energy management in industry – Challenges and opportuniFes
5. Decision-‐makers Ma]er! Need to make a compelling business case to the board Produc(vity gains “sell” Chief Technology Officer “Do we know what energy efficiency practices and technologies are available?” Financial Director Driver: knowledge Do we have the money to invest and are we willing to spend it on EE? Driver: Financials CEO Are we committed to prioritize EE above other investments? Driver: Commitment Source: Ecofys in Reinaud and Goldberg, 2011 Marketing DirectorDo the public and market demand us taking EE measures? Driver: Public and market Regulatory Affairs Officer demand Does this government policy require us to take EE measures? Driver: Policy obligation
6. Co-‐beneﬁts -‐ a signiﬁcant driver for companies • Co-‐beneﬁts o_en exceed the value of energy savings • Including co-‐beneﬁts reduces payback Fmes for investments Examples: • Value of non-‐energy beneﬁts (NEBs) equal to about 2.5 (mes the projected energy savings for the installed measures (Hall & Roth, 2003) • Inclusion of quanFﬁed co-‐beneﬁts in an energy-‐conservaFon supply curve for the US iron and steel industry doubled the poten(al for cost-‐eﬀec(ve savings (Worrell et al. 2001 & 2003) • An iniFal cost of $5000 in consulFng fees for purchasing a three-‐fan, variable inlet valve controlled system, created a potenFal incremental annual revenue $375 000 for Alcoa.
7. Policy Pathway Overview • What: DeﬁniFons • Why: Importance of managing energy in industry • Role of energy management programmes • How to design and deliver energy management programmes
8. Energy Management Programmes -‐ DeﬁniFons Link to policy • Target-‐sehng policy • Mandatory EnMS package Drivers & • Policy exempFons IncenFves • Subsidies / Tax rebates • Public reporFng • External RecogniFon • Networking • Workshops Support • Direct technical assistance • Tools, training Energy • Standard or speciﬁcaFon Management • EnMS incl. Energy review guidelines • CerFﬁcaFon or veriﬁcaFon Systems
9. Why Energy Management? => Save Energy and Realise Co-‐Beneﬁts Why EnMS? • Overcome a range of barriers to energy eﬃciency • Measurement of baseline energy use, energy reviews, KPIs, etc. • ConFnuous idenFﬁcaFon of energy saving opportuniFes & implementaFon • Involvement of top management and staﬀ Why EnMPs? • Energy saving acFons in industry are relaFvely cost eﬀecFve • EnMPs can be linked to and support policy objecFves e.g., energy security • Isolated adopFon of EnMS may lead to varying degrees of quality and durability, and low up-‐take • Overcome company barriers to the implementaFon of EnMSs, and provide guidance and support for the implementaFon process
10. “EnMS +”: ImplementaFon Mechanisms • EnMS is the cornerstone of an EnMP, but other EnMP components are necessary to achieve energy savings… • Energy review, benchmarking and technical tools assist in idenFfying EE opportuniFes, deﬁning targets and key performance indicators (KPIs) within their EnMS. • Some may be complementary requirements • Direct programme and/or technical assistance • Case studies showing peer experience • Guidance materials • Workshops, networks and other fora for best pracFce exchange
11. Country example: Sweden voluntary PFE agreement Drivers & • Rebate from carbon tax • External recogniFon (case IncenFves studies) • Manuals on energy reviews, LCC and procurement Support • Networking and workshops • Direct technical assistance Energy • EN 16001 (transiFon to ISO Management 50001) standard • EnMS CerFﬁcaFon Systems
12. Country example: Australia Energy Eﬃciency OpportuniFes • EEO is mandatory Drivers & • Public and government reporFng IncenFves • External recogniFon (case studies) • Industry Guidelines Support • Industry Support Oﬃcers • Annual workshops Energy • Assessment Framework (EnMS Management speciﬁcaFon) • Government veriﬁcaFon Systems
13. EnMS in the Supply Chain What is the role of EnMS in supply chain ini(a(ves? • Successful examples of large buyers/retailers engaging their manufacturing base in energy or GHG saving acFviFes, e.g.: • Ikea audits and capacity building with its manufacturing suppliers (partnership with WWF Climate PosiFve OpportuniFes for Suppliers) • Ford and SKF require suppliers to be ISO 14001 cerFﬁed • IIP Database on Supply Chain IniFaFves for Industry (April) • ISO 50001 – an internaFonally recognised a framework for organisaFons to encourage suppliers to be]er manage energy
14. Key Messages and Future Pathways • EnMS is a tool to change behavior, processes, technologies • EnMS can enable signiﬁcant co-‐beneﬁts to be uncovered • Need to speak the same language as C-‐level to encourage uptake • Communicate beneﬁts and costs for companies • Need EnMS + • Government policy, such as EnMPs, and enabling ﬁnance, can have a key role in promoFng EnMS • EnMS has a role to play in corporate Supply Chain Ini(a(ves • What role for government agencies in promoFng SCI?
15. INSTITUTE FOR Industrial Productivity Sharing best practices for low carbon enterprises e firstname.lastname@example.org w iipnetwork.orgThank you! IIP Amelie.email@example.com Julia.firstname.lastname@example.org IEA Vida.Rozite@iea.org Lisa.Ryan@iea.org Jungwook.Park@iea.org