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ZAM ENERGY WORKSHOP:
ENERGY AUDIT FINDINGS
PRESENTED BY READLAY MAKALIKI
Date: 03 June 2015
PRESENTATION OUTLINE
 Introduction
 Definitions
 Why Energy Efficiency
 Companies Audited
 Audit Findings
 Recommendations
 Way Forward
06/03/2015 2
INTRODUCTION
 Zambia’s economy growing very favorably (6.5% :2011)
 Industrial & Commercial sector consumes about 20% of the total
electricity in Zambia (49% Mining)
 Electricity demand strongly correlated to economic growth
 Electricity is a key driver of economic growth as it is a major input in
all major social and economic sectors; domestic, agriculture, mining,
manufacturing, and tourism
 Manufacturing as a potential economic activity for the country heavily
depends on electricity
 Recently generation challenges due to low water levels
06/03/2015 3
INTRODUCTION
 The Zambia Association of Manufacturers (ZAM) is keen to implement
measures that will help the Zambian local industry to conserve and
utilize energy more efficiently.
 Supported by the Embassy of Finland in Zambia through the Funds for
Local Cooperation (FLC), the Project aims to
a) Promote the conservation and efficient utilization of energy for
production in the manufacturing sector thereby contributing to cost
saving and environmental sustainability.
b) Assess energy utilisation and management practices & determine the
level of energy efficiency, wastage and implications on
competitiveness
06/03/2015 4
INTRODUCTION
c) To assess the current energy technologies being used and recommend
better (efficient, environmentally friendly) technologies
d) Build ZAM secretariat’s capacity to survey and provide energy
management consultancy
e) Provide actionable recommendations for replication in other sectors
f) Assist firms comply with the newly set power factor target (0.92)
 Under this programme ZESCO carried out energy audits for some
Copperbelt based ZAM affiliate companies
 This presentation reports on the findings of these audits.
06/03/2015 5
DEFINITIONS
 Energy Efficiency
Ratio or other quantitative relationship between an output of
performance, service, goods or energy and an input of energy
 Energy Audit
Verification, monitoring and analysis of use of energy including
submission of technical report with recommendations for improving
energy efficiency with cost benefit analysis
 Energy Management System
Set of interrelated or interacting elements to establish an energy policy
and energy objectives, and processes and procedures to achieve those
objectives
06/03/2015 6
Dwindling energy resources especially fossil fuels
Concerns about environment and climate change
IEA has coined Energy Efficiency as the “Hidden Fuel”
Article 5.9, Energy Management, in the Energy Policy
of 2008 seeks to promote efficient use of energy
resources in all sectors of the economy
Government incentives through SIs that waive duty on
energy efficient products and equipment
Legislation – Zambian Grid Code
Hence need to manage energy
WHY ENERGY EFFICIENCY
06/03/2015 7
COMPANIES AUDITED
 23 Companies available for audit but the following have been
done between February & March on the Copperbelt
NAME LOCATION PRODUCT TYPE
ANNUAL ENERGY
CONSUMPTION
(GWh)
ANNUAL ENERGY
COST
(ZMW)
SCAW KITWE STEEL BALLS &
CASTINGS
23.98 8,847,320.27
ZAMEFA LUANSHYA COPPER &
ALLUMINIUM CABLES
21.5 5,176,584.55
NONFERROUS NDOLA STEEL CASTINGS 0.416 217,121.56
MATALLOY LUANSHYA FERROSILICON 17.8 4,593,027.63
SKF KITWE STEEL FABRICATION 0.144 44, 794
ART NDOLA STEEL WIRES 0.198 74,173
06/03/2015 8
 No formal energy management system exists
 No awareness of energy management among employees
 Poor maintenance regimes-multiple system leakages in water
and air
 Office lighting and air conditioners observed on even when
occupants not present
 Use of non energy saving lights and no automatic switching
mechanism for external lights
 Power factor okay during normal operations (0.98) when
running capacitive loads but low during maintenance (0.4)
from Friday to Sunday during offloading and loading
AUDIT FINDINGS - X
06/03/2015 9
 High harmonics (9.4%) observed above the 8 % international
threshold
 Furnaces, consuming 80% of total energy are run open
without hoods. This reduces efficiency as most energy is lost
in form of heat
 Non essential units like pumps continue to run even during
non productive hours e.g maintenance
 There is no process flow studies to ascertain energy
inputs/production outputs. Thus opportunities to de-rate
equipment or eliminate extra capacity units are missed.
AUDIT FINDINGS - X
06/03/2015 10
 Use of transparent roofing of factory observed to allow natural
lighting
 All 15 tonnes cranes have VSDs incorporated, thus ensuring
optimal use of energy.
 There is willingness from top management to support the
system
AUDIT FINDINGS - X
06/03/2015 11
 Transparent roofing observed on the entire factory
 Power factor of 0.94, power factor correction equipment with
filters installed
 Apparent power observed to be almost equal to the actual
power, thus this system is efficiently run
 Automated switches for external lights are functional thus
eliminating manual intervention
 There is willingness from top management to support the
system
 Observed installed non-energy efficient lighting
AUDIT FINDINGS - Y
06/03/2015 12
ART, SKF and Non-Ferrous Metals
Power factor too low 0.3
Actual consumption too low compared to declared
demand
No energy efficient lighting
No automated switches for external lights
There is lack of appreciation of the energy costs by
top management
Inadequate diagnostic equipment for artisans
AUDIT FINDINGS - OTHERS
06/03/2015 13
POWER FACTOR PROFILES
1406/03/2015
TRANSPARENT ROOFING
1506/03/2015
PIPE & PUMP LEAKAGES
1606/03/2015
SECURITY LIGHT - DAYTIME
1706/03/2015
CHALLANGES
During the exercise, the following challenges were
enountered:
 Time of audit was too short and could not provide data
representative enough to make recommendations
 90% of clients audited could not complete questionnaires
and looked reluctant to provide some company data on
grounds of mistrusts
 Power quality tools were not enough as hey had to be
rotated between the various clients
 Companies lack updated equipment inventory
 Low tariff affects pay back period
1806/03/2015
RECOMMENDATIONS
The following are some of the recommendations that should
set a basis for review in the future audits to be conducted
 All companies audited need to form functional energy audit
teams with clear goals embedded in the company policy
 Training of personnel thus providing awareness on energy
management initiatives and providing of incentives to
deserving employees
 Phase out non energy efficient lights by replacing them
with CFLs , LEDs
 Installation of automated switching devices such as
sensors in offices and photocells for external lights
 Invest in power factor correction equipment with filters
1906/03/2015
RECOMMENDATIONS
 All furnaces must be run with the hoods on top to reduce
loss of heat by convection
 During non productive hours, non essential equipment
must be switched off
 There is need ensure thorough maintenance by eliminating
all leaks on pumps, pipes etc. for both water and
compressed air
 Invest in power quality equipment and training
 Use of transparent roofing sheets in factories and
warehouses, so as to avoid using electric lights during day
time. (Industrial, Commercial)
 Review systems to ascertain areas of opportunity for
savings
 Sensitize employees on costs particularly energy costs.
2006/03/2015
WAY FORWARD
Follow up audits on copperbelt firms
Persuade industries to invest in energy efficiency
Intensify planned annual or half yearly audits to
review implementation
Hold Energy Efficiency sensitization workshops with
stakeholders and ZAM
Sensitization on low power factor surcharge
21
06/03/2015
END - THANK YOU
06/03/2015 22

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Zam energy efficiency workshop lusaka rev1

  • 1. ZAM ENERGY WORKSHOP: ENERGY AUDIT FINDINGS PRESENTED BY READLAY MAKALIKI Date: 03 June 2015
  • 2. PRESENTATION OUTLINE  Introduction  Definitions  Why Energy Efficiency  Companies Audited  Audit Findings  Recommendations  Way Forward 06/03/2015 2
  • 3. INTRODUCTION  Zambia’s economy growing very favorably (6.5% :2011)  Industrial & Commercial sector consumes about 20% of the total electricity in Zambia (49% Mining)  Electricity demand strongly correlated to economic growth  Electricity is a key driver of economic growth as it is a major input in all major social and economic sectors; domestic, agriculture, mining, manufacturing, and tourism  Manufacturing as a potential economic activity for the country heavily depends on electricity  Recently generation challenges due to low water levels 06/03/2015 3
  • 4. INTRODUCTION  The Zambia Association of Manufacturers (ZAM) is keen to implement measures that will help the Zambian local industry to conserve and utilize energy more efficiently.  Supported by the Embassy of Finland in Zambia through the Funds for Local Cooperation (FLC), the Project aims to a) Promote the conservation and efficient utilization of energy for production in the manufacturing sector thereby contributing to cost saving and environmental sustainability. b) Assess energy utilisation and management practices & determine the level of energy efficiency, wastage and implications on competitiveness 06/03/2015 4
  • 5. INTRODUCTION c) To assess the current energy technologies being used and recommend better (efficient, environmentally friendly) technologies d) Build ZAM secretariat’s capacity to survey and provide energy management consultancy e) Provide actionable recommendations for replication in other sectors f) Assist firms comply with the newly set power factor target (0.92)  Under this programme ZESCO carried out energy audits for some Copperbelt based ZAM affiliate companies  This presentation reports on the findings of these audits. 06/03/2015 5
  • 6. DEFINITIONS  Energy Efficiency Ratio or other quantitative relationship between an output of performance, service, goods or energy and an input of energy  Energy Audit Verification, monitoring and analysis of use of energy including submission of technical report with recommendations for improving energy efficiency with cost benefit analysis  Energy Management System Set of interrelated or interacting elements to establish an energy policy and energy objectives, and processes and procedures to achieve those objectives 06/03/2015 6
  • 7. Dwindling energy resources especially fossil fuels Concerns about environment and climate change IEA has coined Energy Efficiency as the “Hidden Fuel” Article 5.9, Energy Management, in the Energy Policy of 2008 seeks to promote efficient use of energy resources in all sectors of the economy Government incentives through SIs that waive duty on energy efficient products and equipment Legislation – Zambian Grid Code Hence need to manage energy WHY ENERGY EFFICIENCY 06/03/2015 7
  • 8. COMPANIES AUDITED  23 Companies available for audit but the following have been done between February & March on the Copperbelt NAME LOCATION PRODUCT TYPE ANNUAL ENERGY CONSUMPTION (GWh) ANNUAL ENERGY COST (ZMW) SCAW KITWE STEEL BALLS & CASTINGS 23.98 8,847,320.27 ZAMEFA LUANSHYA COPPER & ALLUMINIUM CABLES 21.5 5,176,584.55 NONFERROUS NDOLA STEEL CASTINGS 0.416 217,121.56 MATALLOY LUANSHYA FERROSILICON 17.8 4,593,027.63 SKF KITWE STEEL FABRICATION 0.144 44, 794 ART NDOLA STEEL WIRES 0.198 74,173 06/03/2015 8
  • 9.  No formal energy management system exists  No awareness of energy management among employees  Poor maintenance regimes-multiple system leakages in water and air  Office lighting and air conditioners observed on even when occupants not present  Use of non energy saving lights and no automatic switching mechanism for external lights  Power factor okay during normal operations (0.98) when running capacitive loads but low during maintenance (0.4) from Friday to Sunday during offloading and loading AUDIT FINDINGS - X 06/03/2015 9
  • 10.  High harmonics (9.4%) observed above the 8 % international threshold  Furnaces, consuming 80% of total energy are run open without hoods. This reduces efficiency as most energy is lost in form of heat  Non essential units like pumps continue to run even during non productive hours e.g maintenance  There is no process flow studies to ascertain energy inputs/production outputs. Thus opportunities to de-rate equipment or eliminate extra capacity units are missed. AUDIT FINDINGS - X 06/03/2015 10
  • 11.  Use of transparent roofing of factory observed to allow natural lighting  All 15 tonnes cranes have VSDs incorporated, thus ensuring optimal use of energy.  There is willingness from top management to support the system AUDIT FINDINGS - X 06/03/2015 11
  • 12.  Transparent roofing observed on the entire factory  Power factor of 0.94, power factor correction equipment with filters installed  Apparent power observed to be almost equal to the actual power, thus this system is efficiently run  Automated switches for external lights are functional thus eliminating manual intervention  There is willingness from top management to support the system  Observed installed non-energy efficient lighting AUDIT FINDINGS - Y 06/03/2015 12
  • 13. ART, SKF and Non-Ferrous Metals Power factor too low 0.3 Actual consumption too low compared to declared demand No energy efficient lighting No automated switches for external lights There is lack of appreciation of the energy costs by top management Inadequate diagnostic equipment for artisans AUDIT FINDINGS - OTHERS 06/03/2015 13
  • 16. PIPE & PUMP LEAKAGES 1606/03/2015
  • 17. SECURITY LIGHT - DAYTIME 1706/03/2015
  • 18. CHALLANGES During the exercise, the following challenges were enountered:  Time of audit was too short and could not provide data representative enough to make recommendations  90% of clients audited could not complete questionnaires and looked reluctant to provide some company data on grounds of mistrusts  Power quality tools were not enough as hey had to be rotated between the various clients  Companies lack updated equipment inventory  Low tariff affects pay back period 1806/03/2015
  • 19. RECOMMENDATIONS The following are some of the recommendations that should set a basis for review in the future audits to be conducted  All companies audited need to form functional energy audit teams with clear goals embedded in the company policy  Training of personnel thus providing awareness on energy management initiatives and providing of incentives to deserving employees  Phase out non energy efficient lights by replacing them with CFLs , LEDs  Installation of automated switching devices such as sensors in offices and photocells for external lights  Invest in power factor correction equipment with filters 1906/03/2015
  • 20. RECOMMENDATIONS  All furnaces must be run with the hoods on top to reduce loss of heat by convection  During non productive hours, non essential equipment must be switched off  There is need ensure thorough maintenance by eliminating all leaks on pumps, pipes etc. for both water and compressed air  Invest in power quality equipment and training  Use of transparent roofing sheets in factories and warehouses, so as to avoid using electric lights during day time. (Industrial, Commercial)  Review systems to ascertain areas of opportunity for savings  Sensitize employees on costs particularly energy costs. 2006/03/2015
  • 21. WAY FORWARD Follow up audits on copperbelt firms Persuade industries to invest in energy efficiency Intensify planned annual or half yearly audits to review implementation Hold Energy Efficiency sensitization workshops with stakeholders and ZAM Sensitization on low power factor surcharge 21 06/03/2015
  • 22. END - THANK YOU 06/03/2015 22