1. Eletrobrás Vienna, Austria – March 2007 BRAZILIAN INDUSTRIAL ENERGY EFFICIENCY PROGRAM: FOCUS ON MOTOR DRIVEN SYSTEMS. INDUSTRIAL ENERGY EFFICIENCY AND ENERGY MANAGEMENT STANDARDS - UNIDO D.Sc. George Alves Soares – Eletrobrás - Brazil

2. Eletrobrás Content n Motor system importance in Brazil; n Background; n Learned Lesson; n Industrial Energy Efficiency Program; n Results; n Learned lessons after 4 years of implementation; n Industrial EM Standard; n Other related activities.

3. Eletrobrás ELECTRICITY CONSUMPTION Electric power consumption in 2006: 347 TWh

4. Eletrobrás IMPORTANCE OF ELECTRIC MOTORS IN THE CONSUMPTION OF ELECTRIC POWER

5. Eletrobrás CONSUMPTION OF ELECTRIC ENERGY FOR INDUSTRIAL SEGMENT Source: BEN-2003

6. Eletrobrás ELECTRIC POWER CONSUMPTION SHARE OF MOTORS, BY INDUSTRIAL SEGMENT Source: BEU-93

7. Eletrobrás PROCEL – National Program of Energy Conservation created in 1985 and carried out by ELETROBRÁS; PROCEL – National Program of Energy Conservation created in 1985 and carried out by ELETROBRÁS; Until 2002 Until 2002 Some energy studies and survey; Some energy studies and survey; Hundreds of energy audits in industry; Hundreds of energy audits in industry; Hundreds of trained professionals; Hundreds of trained professionals; Monitoring and target project implementations; Monitoring and target project implementations; Demonstration projects in some industrial sectors like automobile; Demonstration projects in some industrial sectors like automobile; Several publications, seminar and conferences; Several publications, seminar and conferences; Web-sites, campaigns and softwares; Web-sites, campaigns and softwares; Processes and motors actions Processes and motors actions Low tariffs and cultures barriers; Low tariffs and cultures barriers; No guarantee of real energy savings No guarantee of real energy savings BACKGROUND

8. Eletrobrás Learned Lessons n Lack of knowledge about the motor system integrated performance; n The motor driven systems are complex and quite different; n There’s no engineering that focus all components of the motor system and its integrated performance; n Few interactions between the universities and the industries;

9. Eletrobrás n Computational tools / training / course do not meet all expected targets; n Few interactions between the buying sector and the technical staff; n Energy is never the core business; n Inflation culture; n The need of management commitment; n Absence of structured plan to installed motor driven systems; Learned Lessons

10. Eletrobrás Started in 2003 OBJECTIVES Minimizing losses in motor-driven systems already installed in the Brazilian industry Minimizing losses in motor-driven systems already installed in the Brazilian industry; n Increasing the market penetration of high-efficient three-phase induction motors and efficient motor loads; n Strengthening the technical support in this area PROCEL INDÚSTRIA INDUSTRIAL ENERGY EFFICIENCY PROGRAM

11. Eletrobrás Training and analysis tools for several levels Financing for equipment and instrumentation Self Energy Audit and implementation industry Universities and Research Institutes Manufacturers CONCEPTION COMMITMENT INDUSTRIAL ENERGY EFFICIENCY PROGRAM

12. Eletrobrás AWARENESSAWARENESS ELETROBRÁSFEDERATIONSASSOCIATIONS SKILLS BUILDING RESEARCHERSCONSULTANT FINANCINGFINANCING FEDERAL BANK LABELLABEL CERTIFIERS & MACHINES ASSOCIATION IMPLEMENTATIONIMPLEMENTATION INDUSTRYINDUSTRY INDUSTRIAL ENERGY EFFICIENCY PROGRAM

13. Eletrobrás CONVINCING THE INDUSTRY AWARENESS FINANCIAL RESOURCES (BNDES) FINANCING LABELLABEL CERTIFICATION EDUCATION.MATERIALEDUCATION.MATERIAL SKILLS BLDG. FEDERATIONSFEDERATIONS ASSOCIATIONSASSOCIATIONS 11 44 44 MULTIPLIERS CAPACITY MULTIPLIERS CAPACITY AGENTS TRAINING AGENTS TRAINING 22 INDUSTRIAL ENERGY EFFICIENCY PROGRAM AGENTS=EMPLOYEES FROM INDSTRY COMMITMENT

14. Eletrobrás AGENTAGENT INDUSTRYINDUSTRY IMPLEMENTATION ENERGY AUDIT LABELING MACHINES FINANCIALRESOURCESFINANCIALRESOURCES ENERGY SAVINGS 44 INDUSTRIAL ENERGY EFFICIENCY PROGRAM COMMITMENT

15. Eletrobrás ELETROBRÁS/PROCEL & FEDERATIONS AGREEMENT AWARENESS OF INDUSTRY MANAGERS & TRAINING OF MULTIPLIERS WORKSHOPS FOR TOP & MIDDLE MANAGEMENT & TECHNICAL-OPERATIONAL LEVELS IN INDUSTRY WORKSHOPS FOR TOP & MIDDLE MANAGEMENT & TECHNICAL-OPERATIONAL LEVELS IN INDUSTRY SPECIALIZATION COURSE FOR MULTIPLIERS SPECIALIZATION COURSE FOR MULTIPLIERS SKILLS BUILDING FOR INDUSTRY AGENTS MIDDLE AND HIGHER LEVEL SPECILIZATION COURSE MIDDLE AND HIGHER LEVEL SPECILIZATION COURSE SETTING UP OF BEST PRACTICE IMPLEMENTATION AT THREE INDUSTRIAL PLANTS IN DIFFERENT SUBSECTORS IMPLEMENTATION AT THREE INDUSTRIAL PLANTS IN DIFFERENT SUBSECTORS FOLLOW-UP OF IMPLEMENTATIONS AND RESULTS DIVULGING AND RESULTS DIVULGING

16. Eletrobrás PROGRAM GOALS - 1st PHASE -2007 n To reach 800 industries (large and medium); n 0,8 billion KWh / year ( 13% of Brazil’s potential); n 270 multipliers; n 3,700 agents; n 12 federations; n Interaction among different agents, division of costs and responsibilities. INDUSTRIAL ENERGY EFFICIENCY PROGRAM

17. Eletrobrás BUILDING CAPACITY FOR MULTIPLIERS

18. Eletrobrás Under way: 10 states Current Situation Current Situation MG BA SC SP MS MT PA AM PE CE

19. Eletrobrás n Dissemination of E.E. motor systems techniques in involved engineering; n Technical support of federations agreements and industries; n Simulation of the several operating conditions of main motor-driven systems; n 12 Universities already contemplated in 10 states. ELETROBRÁS/PROCEL AND UNIVERSITIES AGREEMENT

20. Eletrobrás INDUSTRIAL ENERGY EFFICIENCY PROGRAM RESULTS

21. Eletrobrás INDUSTRIAL ENERGY EFFICIENCY PROGRAM RESULTS RegionState Scholar- ships Bachelor’s Degree Master’s Degree Doctor’s Degree North Amazonas 11731 Amazonas 743- Pará 9531 Northest Ceará 1174- Pernambuco 11731 Bahia 871- Midwest Mato Grosso 11731 Mato Grosso 11731 Mato Grosso do Sul 11731 Southest São Paulo 422- Minas Gerais 11731 Minas Gerais 11731 South Santa Catarina 862- TOTAL 12480368

22. Eletrobrás Learned Lessons after 4 years of implementation n The Brazilian state industry federations were more concerned with political issues. The Program pushed them to get closer by gathering data and industrial managers awareness activities. This approach led to identify engineering services opportunities to be offered by the federations to the industries. This is one of the sustainability aspects of the program. n The existing gap between the universities and the industries was reduced through the professors’ acting as multiplier, teaching the agents from the local industry and providing technical assistance. n The agents frequently have reported some difficulties such as lack of time and measurement equipments to identify energy efficiency opportunities in their plants. As a result the implementation phase has been delayed. They have claimed for more support from their managers.

23. Eletrobrás Learned Lessons after 4 years of implementation n Lack of facility engineers and existence of large number of technicians in the maintenance and buying sectors → rewrite all the material taking into account their education and the suitable didactical methodology. n The first energy audits reports were focused basically on motor replacements → high index of energy audit rejection and they have to redo these audits. n Either the consultants changed their mind through out the program. n In order to enhance multipliers’ confidence, a complementary practical training in plants was added to the 176 hours original training. As a result they were better prepared to support energy audits. This also took extra time.

24. Eletrobrás Industrial EM Standards n There is no brazilian standards; n There are several industries that manage their energy consumptions (electricity intensive); n More than 2500 Companies with ISO 14001 Certification; n Working Group to analyze the existent standards will start in September of 2007.

25. Eletrobrás Other related activities n MEPS for induction motors –Only high efficient motors after 2009; n Labeling for pumps –Residential water pump n Mounting independent laboratory capacities for compressors and pumps; n Common agenda with National Industry Confederation; n Projects demonstration and courses for small industries.

26. Eletrobrás THANK YOU FOR THE ATTENTION D.Sc. GEORGE ALVES SOARES ELETROBRÁS / PROCEL e-mail: georgesoares@eletrobras.com www.eletrobras.com/procelwww.eletrobras.com/procel