1. Energy Systems and Infrastructure Division
Energy Management Systems & Energy System Optimization Methodologies for Industrial Energy Efficiency
James New
Energy Systems and Infrastructure Division
Department of Energy
Nigeria Energy Forum 2018
17-18 April 2018
Lagos, Nigeria

2. Presentation Content
Energy Management Systems (EnMS) [in line with ISO 50001]
EnMS in Industry
Energy System Optimization (ESO)
EnMS/ESO Enterprise Results & Case Studies
UNIDO’s upcoming Nigeria EnMS/ESO/RECP Project 2

3. Part I: Energy Management System (EnMS)
An Energy Management System (EnMS) [in line with ISO 50001] is a systematic and structured approach to the management of energy use in all its forms (electricity, fuels, heat, etc.) and at all levels of an organization (management, policy, planning, operations, design, procurement and investments). Implementation of EnMS [in line with ISO 50001] requires organizations and their employees to build new knowledge, understanding and skills; it requires willingness to challenge and change established procedures, processes and work behaviors. An EnMS saves energy – and money. An EnMS IS NOT a combination of meters, hardware devices and software to measure and monitor electricity consumption and/or to project and balance electrical power demand. An EnMS IS NOT an “administrative tool”. 3

4. EnMS in line with ISO 50001 Purpose of EnMS-ISO 50001
“..to enable an organization to follow a systematic approach in achieving continual improvement of energy performance, ..”
Scope of EnMS-ISO 50001
It is applicable to organizations of all sizes
ISO targeted to
Industry
Power sector
Commercial & buildings
Transport
Others
facilities
equipment
personnel
systems
processes
procurement
measurement
design
doc. & report
ISO does NOT prescribe specific performance criteria or targets
with respect to energy. 4

5. EnMS Structure Policy Planning Source: ISO 50001:2011
Energy policy
Energy planning
Implementation and operation
Checking
Nonconformities, correction, corrective and preventive action
Internal audit of the EnMS
Management review
Monitoring, measurement and analysis
Continual improvement
Policy
Management Review
Implementation & Operation
Planning
Checking
Day to day
operations
Management participation
Yes
Management Responsibility
Source: UNIDO EnMS Programme 5

6. UNIDO EnMS Six Key Concepts
Policy
Management Review
Implementation & Operation
Planning
Checking
Day to day
operations
Management participation
Yes
Management Responsibility
Commitment
Roles and Responsibilities
Significant Energy Uses (SEUs)
Energy Performance Indicators (EnPIs)
Opportunity List
Operational Control
Review
Source: UNIDO EnMS Programme 6

7. kWh EnMS Summary Commit to change Check the results Plan the changes
Make the
changes
Source: W. McLaughlin for UNIDO

8. Part II: EnMS in Industry8

9. BARRIERS to Energy Efficiency in Industry
Management focus is on production & volumes, not on EE
Lack of information and understanding of own energy performance
Lack of adequate skills for identifying, assessing, developing and implementing EE measures and projects
Poor or misused monitoring systems and data
First costs more important than recurring costs  disconnection between capital and operating budgets
Staff behavior and attitude
Financing constraints M K F
Production, technological, operational and staff changes over time
Lack or limited availability of IEE services and product M K F
Management/organizational barrier
Knowledge/competency barrier
Financial barrier 9

10. Energy Consumption in Industry
PEOPLE
TECHNOLOGY
Operations
Best Available Technology
Behaviour
Leadership
EE Investment
Competence
ENERGY CONSUMPTION
Reaction
Production
Product Mix
Weather
Analysis
DATA
DRIVING FACTORS
Source: W. McLaughlin for UNIDO

11. EnMS – Managing and improving 3 pillars
kWh
($ + CO2)
Source: W. McLaughlin for UNIDO

12. Better management & low cost initiatives
Where are opportunities for improvement?
Realizing Savings
- 57%
- 43%
Better management & low cost initiatives
Average
efficiency
Capital investment
Best
performance
Product Costs
Resource Savings
Source: Adapted from IFC, 2010 12

13. EnMS - Productive Change & Continual Improvement
Top management engage in EE
Challenge operations and established practices
Build internal technical skills
Data and analysis discipline
Focus on no/low-cost measures
Continual improvement
EE INTEGRATED
SUSTAINED ENERGY SAVINGS & INVESTMENTS! 13

14. EnMS Quantitative Achievements
Energy savings
Energy cost savings
Non-energy benefits (water savings, material savings, maintenance costs reduction, etc.)
GHG and other pollutants emission reductions
Resources for EE
Reduced response time to dev.
………………………….
Most industrial enterprises that implemented EnMS achieved average annual energy intensity reductions of 2-3% against 1% reduction of business as usual (IRL, NET, DEN, SWE, USA)
For companies new to energy management, savings during the first 2 years are 10-20%
UNIDO experience: organization-wide energy savings in first 1-2 years range from 4% to 15%, with little or no capital investments 14

15. EnMS Qualitative Achievements
Management focus for energy efficiency
Informed decision making
Improved control of production operations and energy/power demand
Staff competencies development
Behavioral/cultural change for energy efficiency and continual performance improvement
Continuity of performance through changes of personnel, products and processes
Improved quality of production
Systematic and structured activities
Positive company/corporate image (operational excellence, environmental stewardship, social responsibility, etc.)
………………………….. 15

16. Part III: Energy Systems Optimization (ESO)

17. What is an Energy System
Generation
Distribution
End Use
Recovery
Example of Steam System
Source: R. Papar for UNIDO

18. A Motor System & Applications
What we mean by Energy System
What are the motors really
doing:
Compressed-air systems
Pumps systems
Fans systems
Other motors systems
Refrigeration systems
Other.
Mech. movement
30%
A Motor System & Applications
Fans
Compressors
32%
Pumps
Sources: IEA 2011; De Almeida et alia, 2008; A+B International, 2009 18

19. Energy System Site Example
Typical Compressed-air System
Source: W. Perry for UNIDO 19

20. Moving from Component to a System Approach
Component approach involves segregating components and analyzing in isolation
System approach involves looking at how the whole group functions together and how changing one can help or impact another
The energy savings opportunities from systems are far greater than from individual components
2-5 % efficiency gains for individual components against 15-30% average efficiency gains through system optimization
Source: W. Perry for UNIDO 20

21. Why a System Optimization Approach
Industrial operations more variable than commercial or residential
Production schedules change
Utilities need to follow production yet remain optimized
Steam systems and motor driven systems (compressed-air, pumps, fans, etc.) account for over 50% of final manufacturing energy use worldwide
Energy savings opportunities from systems are far greater than from individual components
2-5 % efficiency gains for individual components against 15-30% average efficiency gains through system optimization
Capital requirement and implementation costs are often lower and with fast payback, often measured in months 21

22. Part IV: EnMS/ESO Enterprise Results & Case Studies

23. Example I : Iron and Steel – South Africa
COREX
DR-Plant
Steel shop
Mills
RHF
Arcelormittal Saldanha Works
Electricity demand : 160 MW
Manpower: 548 permanent employees
Sales output: 1,2 million ton HRC/annum
Energy Efficiency Achievements 2011
Energy Management System Implemented
No. of Projects/Measures 11
Total Capital Investment (USD)
90,000
2011 Gross Financial Savings (USD)
9,076,000
Overall Payback Period (in years)
2011 Energy Savings Norm. (GWh)
79.95
2011 GHG Reductions (tons CO2)
77,000
Adjustments/optimization of production operations, energy systems optimization, fuels switching, etc driven by EnMS!
2012 Energy Savings (Norm.) > 100 GWh

24. Vardar Dolomit improvements 2016 Energy Management System Implemented
Example II : Refractory Material – Macedonia
Vardar Dolomit
Production of fire restistent materials based on sintered dolomite
85 employees
29.3 GWh consumption of oil & mazut in 2015
3.3 GWh consumption of electricity in 2015
EnMS scope in 2016 only electricity
Vardar Dolomit improvements 2016
Energy Management System Implemented
No. of Measures/Projects 21
Total Capital Investment (EUR)
5,600
Gross Monetary Savings (EUR)
89,655
Overall Payback Period (in years)
0.06
2016 Electricity Savings Nor. (MWh)
248
2016 GHG Reductions (tons CO2)
320.7
19,655€ from electricity savings (7.5%), normalized
70,000 € of power purchase contract savings due to better electricity demand control and forecasting
Payback time of EnMS implementation considering all experts and staff costs = 3 months

25. Example III: Dairy Sector - Moldova
Moldova: ‘Reducing Greenhouse Gas Emissions through Improved Energy Efficiency in the Industrial Sector

26. Part V: UNIDO’s Nigerian EnMS/ESO/RECP Project

27. Operational in 18 countries
UNIDO’s Global EnMS-ESO Programme (June 2017)
Operational in 18 countries
Planned activities in 10+ countries
South Africa
Moldova
Russia
Turkey
Ecuador
Malaysia
Thailand
Viet Nam
Philippines
Indonesia
Egypt
Iran
Ukraine
Colombia
Macedonia
Myanmar
India
Georgia
Projects ongoing
Planned activities
Other donors
Swiss State Secretariat for Economic Affairs
UK Department for International Development
Government of South Africa
Government of Italy
Government of Austria 27

28. UNIDO/GEF: Nigerian Industrial Energy & Resource Efficiency Project
Project Objective: To assist Nigerian industry & the Gov. to foster increased energy performance, resource efficiency & cleaner production within industrial sector, thereby increasing industrial competitiveness, employment while reducing transboundary & local pollution.
Project Focal Areas:
EnMS
ESO
Resource Efficiency & Cleaner Production (RECP)
Project Duration:
Project Beneficiaries:
Industrial (& Commercial) Enterprises
Engineering Consulting Firms/Experts
Relevant Government Ministries & Entities
Suitable Training and Technical Assistance Providers

29. UNIDO/GEF: Nigerian Industrial Energy & Resource Efficiency Project
Project Components/Activity Areas:
Policy and Regulatory Enhancement/Strengthen – Focusing on the area of data collection & Analysis for better Policy and Regulatory formulation.
EnMS/ESO/RECP training:
Industrial Enterprises
Industrial Engineering Consultancies/ESCOs
National Training Providers
EnMS/ESO/RECP Technical Assistance Programme to Industrial Enterprises
National Banking Institutional Capacity Building
National EnMS/ESO/RECP Awareness Strengthening

30. THANK YOU!
For more Information or join our new Nigerian EnMS/ESO/RECP Project, please contact:
Mr. James NEW
Industrial Development Officer
Energy Systems and Infrastructure Division
Department of Energy, UNIDO
Mr. Olubanwo Oluyomi BANJO
National Project Officer
UNIDO Nigeria Regional Office
UNIDO