1. Energy Systems Optimization Current and Future International Practices Jigar V. Shah October 19, 2011 Beijing

2. Topics What is Energy Systems Optimization (ESO)? Why does ESO matter? International practices - current and future Performance evaluation practices Brief introduction to international experts

3. IIP at a glance…. OUR MISSION To significantly reduce GHG emissions by giving business leaders and policymakers access to effective practices, technologies and tools to advance industrial productivity. WHAT WE DO Share best practices Policy assistance Financial expertise Technical support Research funding WHO WE ARE A non-profit established by the ClimateWorks Foundation in 2010 Strategically linked to a global network of groups addressing climate change Work in partnership with industries, governments, financial institutions etc. IIP At A Glance….

4. OUR PARTNERSHIP WITH ENERGY FOUNDATION Energy Foundations industry program and IIP have complimentary strategies In China IIP works in close coordination with Energy Foundations industry program IIP brings global best practice knowledge, experts, and partners in areas Energy Foundation identifies as important for mutual effort

5. Industry continues to be the largest energy consuming sector in the world Courtesy IEA

6. Energy efficiency has already taken root in industry…… Courtesy IEA

7. What is Energy Systems Optimization? Design and operation of industrial processes – To maximize production and profitability – To minimize energy use

8. Why does ESO matter? Considering just the motor…….. Courtesy UNIDO

9. Why does ESO matter? Considering motor and pump…….. Courtesy UNIDO

10. Why does ESO matter? Considering motor, pump, and discharge valve… Courtesy UNIDO

11. Why does ESO matter? Now if you take one more step… Add in a power plant for electricity supply…… Overall efficiency is 4%!!!!! For impact, we need to look at the entire system

12. The Onion Diagram

13. What are the elements of ESO? Energy Management System Metering and measurements Heat and material balances Process control and optimization Process integration Performance evaluation Design and operating guidelines, standards, and training

14. International practices CurrentFutureBarriers Varies by sector – cement, iron and steel, refining, petrochemicals Multinationals have well established systems Licensors of technology play an important role Plant certification schemes have important elements – ISO 50001 – GSEP (Global Superior Energy Performance) Lack of awareness Inability to invest resources Age of plant and technology Size of plant Practice in the sector and country

15. Performance evaluation

16. USEPAs Energy Performance Index

17. Solomon Energy Intensity Index

18. CSI Energy Consumption Per Region (2009)

19. International Experts Jimmy Kumana Refining Professor Mahalec Refining Vilnis Vesma Performance Evaluation Professor Worrell Iron and Steel Dr. Arvind Thekdi Iron and Steel Mike Brown Iron and Steel