Certifying Industrial Energy Efficiency Performance: AligningManagement, Measurement, and Practice to Create Market Value

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More than fifteen years after the launch of programs in theU.K. and U.S., industry still offers one of the largest opportunities forenergy savings worldwide. The International Energy Agency (IEA) estimatesthe savings potential from cost-optimization of industrial motor-drivensystems alone at 7 percent of global electricity use. The U.S. Departmentof Energy (USDOE) Industrial Technologies Program estimates 7 percentsavings potential in total US industrial energy use through theapplication of proven best practice. Simple paybacks for these types ofprojects are frequently two years or less. The technology required toachieve these savings is widely available; the technical skills requiredto identify energy saving opportunities are known ... continued below

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McKane, Aimee; Scheihing, Paul & Williams, Robert July 1, 2007.

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More than fifteen years after the launch of programs in theU.K. and U.S., industry still offers one of the largest opportunities forenergy savings worldwide. The International Energy Agency (IEA) estimatesthe savings potential from cost-optimization of industrial motor-drivensystems alone at 7 percent of global electricity use. The U.S. Departmentof Energy (USDOE) Industrial Technologies Program estimates 7 percentsavings potential in total US industrial energy use through theapplication of proven best practice. Simple paybacks for these types ofprojects are frequently two years or less. The technology required toachieve these savings is widely available; the technical skills requiredto identify energy saving opportunities are known and transferable.Although programs like USDOE's Best Practices have been highlysuccessful, most plants, as supported by 2002 MECS data, remain eitherunaware or unmotivated to improve their energy efficiency--as evidencedby the 98 percent of US industrial facilities reporting to MECS say thatthey lack a full-time energy manager. With the renewed interest in energyefficiency worldwide and the emergence of carbon trading and newfinancial instruments such as white certificates1, there is a need tointroduce greater transparency into the way that industrial facilitiesidentify, develop, and document energy efficiency projects. Historically,industrial energy efficiency projects have been developed by plantengineers, frequently with assistance from consultants and/or supplierswith highly specialized technical skills. Under this scenario,implementation of energy efficiency improvements is dependent onindividuals. These individuals typically include "champions" within anindustrial facility or corporation, working in cooperation withconsultants or suppliers who have substantial knowledge based on years ofexperience. This approach is not easily understood by others without thisspecialized technical knowledge, penetrates the market fairly slowly, andhas no assurance of persistence, since champions may leave the company orbe reassigned after project completion.This paper presents an alternatescenario that builds on the body of expert knowledge concerning energymanagement best practices and the experience of industrial champions toengage industry in continuous energy efficiency improvement at thefacility rather than the individual level. Under this scenario,standardized methodologies for applying and validating energy managementbest practices in industrial facilities will be developed through aconsensus process involving both plant personnel and specializedconsultants and suppliers. The resulting protocols will describe aprocess or framework for conducting an energy savings assessment andverifying the results that will be transparent to policymakers, managers,and the financial community, and validated by a third-party organization.Additionally, a global dialogue is being initiated by the United NationsIndustrial Development Organization (UNIDO) concerning the development ofan international industrial energy management standard that would be ISOcompatible. The proposed scenario will combine the resulting standardwith the best practice protocols for specific energy systems (i.e.,steam, process heating, compressed air, pumping systems, etc.) to formthe foundation of a third party, performance-based certification programfor the overall industrial facility that is compatible with existingmanagement systems, including ISO 9001:2000, 14001:2004 and 6 Sigma. Thelong term goal of this voluntary, industry designed certification programis to develop a transparent, globally accepted system for validatingenergy efficiency projects and management practices. This system wouldcreate a verified record of energy savings with potential market valuethat could be recognized among sectors and countries.

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  • ACEEE Summer Study for Industry 2007, WhitePlains, NY, July 24-27, 2007

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  • Report No.: LBNL--63413
  • Grant Number: DE-AC02-05CH11231
  • Office of Scientific & Technical Information Report Number: 929670
  • Archival Resource Key: ark:/67531/metadc900717

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  • July 1, 2007

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  • Sept. 27, 2016, 1:39 a.m.

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  • Sept. 30, 2016, 3:41 p.m.

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McKane, Aimee; Scheihing, Paul & Williams, Robert. Certifying Industrial Energy Efficiency Performance: AligningManagement, Measurement, and Practice to Create Market Value, article, July 1, 2007; (digital.library.unt.edu/ark:/67531/metadc900717/: accessed August 23, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.