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Pump System Optimization

This document summarizes a presentation on optimizing industrial pump systems for energy efficiency. It discusses how pumps account for a large portion of industrial energy usage and offers significant potential savings. A systems approach is advocated that looks at how whole pumping systems function together rather than individual components in isolation. Optimization opportunities exist when pump sizing, installation, operation or maintenance is improper. Case studies and strategies are provided for improving reliability, reducing costs and increasing efficiency through non-throttling control methods like variable speed drives.

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0% found this document useful (0 votes)
424 views

Pump System Optimization

This document summarizes a presentation on optimizing industrial pump systems for energy efficiency. It discusses how pumps account for a large portion of industrial energy usage and offers significant potential savings. A systems approach is advocated that looks at how whole pumping systems function together rather than individual components in isolation. Optimization opportunities exist when pump sizing, installation, operation or maintenance is improper. Case studies and strategies are provided for improving reliability, reducing costs and increasing efficiency through non-throttling control methods like variable speed drives.

Uploaded by

Indra Sukma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 40

Vendors Briefing on

Pump System Optimization

“Promoting Energy Efficiency in The Industries


Through System Optimization and
Energy Management System Standard in Indonesia”
The Systems Approach to Energy Efficiency
Opportunities in Pump System
Energy Efficiency

Dr. Gunnar Hovstadius,


UNIDO Pump System Expert

Gunnar Hovstadius Consulting, LLC


Fluid System Optimization
[email protected]

Agenda
• Why Pumps
• Overview of Systems Approach
• Industrial Pump System Optimization
• Maintenance and Reliability
• Case Studies
– Deep well pump for potable water, Hawaii
– SINOPEC Yangtze Petrochemical Company in Jiangsu Province, China
– Chevron refinery, Richmond CA
– Visteon automotive Glass plant, TN

• Questions & Answers


2
WHY PUMPS ?

Pumping costs hit the bottom line


World Industrial Electrical
Energy Demand
Pumping
Systems
20%

Industrial Plant
Energy Usage
Pumping
Systems
25%-50%
P&P Motor Energy Savings Potential (US DOE)

Pumps offer the largest potential for process energy savings

Finnish Tech. Research Center Report:


"Expert Systems for Diagnosis of the Condition and
Performance of Centrifugal Pumps"

Evaluation of 1690 pumps at 20 process plants:


• Average pumping efficiency is below 40%
ƒ Over 10% of pumps run below 10% efficiency
• Major factors affecting pump efficiency:
• throttled valves
• pump over-sizing
• Seal leakage causes highest downtime and cost
“Component” or “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

• A pump may have an operating efficiency of 85%, but if the flow is


being throttled the system efficiency will be much lower…..

The Systems Approach


Electric utility
feeder

Transformer Component optimization involves segregating


components and analyzing in isolation
Motor breaker/ System optimization involves looking at how the
starter whole group functions together and how
changing one can help another
Adjustable
speed drive
(electrical)
Fluid Ultimate
Motor Coupling Pump
system goal
Output =Flow rate * head * constant
Which flow rate? F2
Which head?

Defining
the System

Input

P F1
P
MCC

Why do Optimization Opportunities Exist?


• Lack of a systems approach during the design
process
• Overly conservative or improper equipment
selection, resulting in poor performance
(more is better)
• Improper installation or operation
• Poor maintenance
• System requirements change over time
10
Look for:
• Pumping systems where significant throttling takes place
• Pumping systems with recirculation of flow used as a control
scheme
• Pumping systems with large flow or pressure variations
• Multiple pumping systems where the number of operated
pumps is not adjusted in response to changing conditions
• Systems serving multiple end uses where a minor user sets the
pressure requirements.
• Cavitating pumps and/or valves
• High vibration and/or noisy pumps, motors or piping
• Pumps with high maintenance requirements
• Systems for which the functional requirements have changed
with time, but the pumps have not.
11

A system approach gives results


• Studies Show that up to
30% - 50% of the Energy
Consumed by Pump
Systems Can be Saved
Through Equipment or
Control System Changes.
• Energy Efficiency is also a
Key Player in Reducing
Overall Operating,
Maintenance and
Environmental Costs.
Reliability and Up-Time
• Energy Efficiency is also a Key Player in
Reducing Overall Operating, Maintenance Costs and
Increasing production, reliability and quality.

Maintenance Costs

30HP ANSI Pumps


RCM Reduced Pump Bearing and Motor
Failures
The mill was applying VFDs on pumps
during the years included in this study

TAPPI Solutions! Magazine: GP Old Town


September 01, 2001 Vol. 01, No. 01

Pumps operated inefficiently:

The Excess energy is used to, and will:


– Destroy valves and other equipment
– Increase bearing loads
– Create vibrations in pipes and seals
– Lower the (Pump/Plant) availability
– Increase maintenance costs
– Increase energy costs
Pump System Energy Representation
Useful System curve with
energy Head valve fully open, S1
~Head x
Flow

Flow
60 l/s
Energy wasted
in pump and
motor

Throttling: Duty Point Moves to Left on the


Pump Curve
Pressure drop in the valve
Wasted Energy in
motor , pump and
System Curve with makes the friction losses
valve throttled, S2 larger and the system
valve
curve steeper. The system
S1
Head curve gets steeper and
steeper as the valve
closes. 2 valve-positions
shown

Flow
30 l/s
Useful energy System curve with valve fully open
Throttling: Duty Point Moves to Left on the Pump Curve
Wasted Energy in
Motor, Pump and Head Pressure drop in the valve
S3 makes the friction losses
Valve
larger and the system
S1
curve steeper. The system
curve gets steeper and
steeper as the valve
closes. 2 valve-positions
shown

Flow
15 l/s
Useful energy Needed System curve with valve fully open
flow

Paper Mill Pump Manila


Jan. 2005
How a VSD saves
energy
The pump curve changes, not the system curve
NO
Wasted S3 System curve with valve fully open
Energy Head
S1
With a smaller pump or a
slowed down pump, the
same rate of flow can be
delivered without the large
losses in the valve

Flow
Useful energy the same as before. Valve
losses are eliminated

Excessive Valve Throttling is


Expensive
• Higher energy consumption
• Lower process reliability
• Poor process control
– increased variability
– manual operation

Control engineers need to incorporate the pumping


system as part of the automation architecture
Elements of Pump System Optimization

• Evaluating flow and pressure demands and


matching supply to these requirements

• Applying sophisticated control strategies that


allow greater flexibility to match supply with
demand

• Changing out or supplementing existing


equipment to improve operating efficiency

23

What should be done?

• Avoid over-sizing
• Balance supply to demand
• Avoid throttling valves
• Where appropriate use VFDs
• Use high quality equipment
• Integrate pumps in the process control system
You are not managing what you do
not measure
&
If you do not manage you cannot
save!

25

Software Tools available


Pumping System Assessment Tool (PSAT) 2008
Release Date: February 6, 2008, metric and English units

The Pumping System Assessment Tool helps industrial


users assess the efficiency of pumping system operations.
This version of the tool and its accompanying valve tool
support data measurements in either English or metric units.
PSAT uses achievable pump performance data from
Hydraulic Institute standards and motor performance data
from the MotorMaster+ database to calculate potential
energy and associated cost savings. The tool also enables
users to save and retrieve log files, default values, and
system curves for sharing analyses with other users.

26
Four case studies

Deep well pump for potable water supply


• 10 stage vertical turbine
• 500 m deep well and uses a pump with a
• 450 kW submersible motor controlled by a
variable speed drive.
• the pump was operated between 100% and 83%
speed, varying flow from 238 m3/hr to 103
m3/hr.
• Based on discussions with operators, three
average flow intervals were used to evaluate
system efficiency. Flow, head and power were
measured at each interval. The results are
shown in Table 1
Total System Efficiency Curves with Static Head
35%
Head
800 40 Total System Efficiency Curves (%)
45
(m)
50
720 55
5
60
640 5

System Curve
560
480
Static
400 Head
100% speed
320 92% speed
83% speed

240
80
160
80
0 40 80 120 160 200 240 280 320 360 400 440

Flow (m3/hr)

Total System Energy use:


Hours Flow kW kWh
1800 238 488 878400
1500 191 441 661500
1500 103 345 517500
Total 2057400
At an average cost of $0.13/kWh, annual energy costs with the drive
installed are approximately $267,000.

At a flow rate of 238 m3/hr, the pump would need to operate 3657 hours
annually to satisfy flow requirements. This corresponds to 1623 874
kWh/year or 211,103 USD in annual energy costs, saving approximately
57 000 USD.
Payback: instantaneous
SINOPEC Yangtze Petrochemical Company in Jiangsu
Province, China
• The project included installation of 34 VSDs on existing
pump systems which were generally oversized with rates
of flow controlled by throttling valves (see Jiangsu
Energy Conservation Center 2005).
• After the project was completed, the specific energy
consumption of the pumps was reduced from 8.016 kWh
to 5.766 kWh per ton of crude oil. 6.26 million tons of
crude oil was refined in 2003.
• The plant thus achieved electricity savings of 14.08
million kWh/a (with 11 270 tons of CO2 emissions
reduction), amounting to 6.62 million Yuan RMB (approx.
660 000 USD).
• The payback period of the project was 0.48 years.

Chevron Refinery – Richmond, CA

Case Study developed for Energy Solutions for California Industry,


Sponsored by US DOE and the California Energy Commission
Chevron Refinery – Richmond, CA
• Evaluated 3 parallel pumps in Blending & Shipping
Area
– 1 primary injection pump, 250 Hp
– 2 secondary pumps, 400 Hp and 750 Hp
• Secondary pumps found to be highly throttled to
regulate flow and pressure
• Secondary pumps replaced
– Designed for actual conditions
– VSDs added to regulate flow and pressure
• Investment = $240,000
• Savings = 4.3 million kWh/yr; $172,000 /yr
• 1.4 year simple payback
• Improved reliability and equipment life

Visteon Automotive Glass Plant – Nashville, TN

Case Study developed for US DOE


Visteon Corp. Automotive Glass Plant – Nashville, TN
• Evaluated 3 process cooling pumps
– Installed in 1968
– 350 Hp each, 5500 Gpm total capacity
• Evaluation found:
– water demand now 3300 Gpm due to process improvements
– Control system was outdated
• Optimization project included:
– 2 new 250 Hp pumps
– Each with VSD
• Investment = $280,000
• Savings = 3.2 million kWh/yr; $224,000 /yr
– Includes water treatment chemicals savings of $92,800 /yr
• 1.4 year simple payback

Shasta Paper company – Anderson, CA

Case Study developed for US DOE


Why systems and not
components
The following slides show test results from a throttled
system at a paper plant

The different system curves refer to design, normal


operation and un-throttled operation

Only delivered Fluid Power is considered

Measured data at two operating points,


Max flow and with un-throttled system
The black square is proportional to fluid
power delivered during normal operation

This is the Necessary fluid power needed to


deliver the same flow if valve is opened
Delivered Fluid power is 270% of needed !

Result of test
¾ The pump is delivering 2.7 times more fluid power than
needed

¾ The difference in delivered fluid power dwarfs any


differences due to pump efficiency that could be obtained
by changing pumps

¾ Thus there is more to be gained from looking at the


system than at the components in this case
Questions & Answers

For more information:

Gunnar Hovstadius
[email protected]

43
Industrial Energy Efficiency
in the Philippines.
Energy Management in
Industry

Robert Williams, Chief


Energy Efficiency Unit
United National Industrial Development Organization
Vienna, Austria

Today’s meeting:
Initiate the development of an industrial energy
efficiency program for the Philippines responding to:

‰ Government’s energy conservation policies and priorities.


‰ Energy concerns of industry.
‰ Requirements of UNIDO, the regional context and the
GEF.
‰ Complimentary with other programs.

2
Energy Concerns of Industry - Purpose of the Project

‰ Assist Industry managers make their factories more


energy-efficient.
‰ Prepare companies for implementation of the new ISO
50001 Energy management standard.
‰ Develop a group of experts in energy management and in
systems optimization.

Industry and Energy Management

‰ Most energy efficiency in industry is achieved through changes


in how energy is managed in an industrial facility, rather than
through installation of new technologies;
‰ Companies that introduce energy management gain a number
of benefits:
– Develop a baseline of energy use
– Actively managing energy use and reduce costs
– Reduce emissions without negative effect on operations
– Continue to improve energy use/product output over time
– Document savings for internal and external use (e.g. emission
credits)

4
Energy Management Results

‰ Companies who have used energy management to


achieve major energy intensity improvements1 include:
– Dow Chemical achieved 22% improvement ($4B savings)
between 1994 and 2005, and is now seeking another 25% from
2005 to 2015
– United Technologies Corp reduced global GHG emissions by
46% per dollar of revenue from 2001 to 2006, and is now
seeking an additional 12% reduction from 2006 to 2010
– Toyota’s North American (NA) Energy Management
Organization has reduced energy use per unit by 23% since
2002; company-wide energy-saving efforts have saved $9.2
million in NA since 1999.

1 Btu/lb of product

Why Isn’t Industry More Energy Efficient?


‰ The business of industry is not energy efficiency
‰ Facility engineers typically do not become CEO or CFOs
‰ Budgets are separate for equipment purchases and operating
costs
‰ Data on energy use of systems is very limited
‰ Difficult to assess performance or evaluate performance
improvements
‰ Opportunities to become more
energy efficient are overlooked

6
Components of an EM Standard

Typical features include:


1. a strategic plan that requires measurement,
management, and documentation for continuous
improvement for energy efficiency;
2. a cross-divisional management team led by a
representative who reports directly to management
and is responsible for overseeing the implementation
of the strategic plan;
3. policies and procedures to address all aspects of
energy purchase, use, and disposal;

Components of an EM Standard, con’t

4. projects to demonstrate continuous improvement in


energy efficiency;
5. creation of an Energy Manual, a living document that
evolves over time as additional energy saving
projects and policies are undertaken and
documented;
6. identification of energy performance indicators,
unique to the company, that are tracked to measure
progress; and
7. periodic reporting of progress to management based
on these measurements

8
ANSI MSE 2000:2008

www.ansi.org
9

Supportive Policies for National Energy


Management Standards

In addition, most countries:


– Offer financial incentives for compliance, usually as
part of a target-setting agreement1
– Provide training on standards compliance
– Provide opportunities for companies to network and
learn from each other
– Several countries also offer system optimization
training
1 typically energy or carbon dioxide tax relief

For more information, see McKane, A. et al, 2007 Setting the Standard for Industrial Energy Efficiency,
http://industrial-energy.lbl.gov/node/399
10
Why System Energy Efficiency Matters

Inefficient? Or energy efficient? Same


work is
done

Source: Almeida, et al., 2005

11

Systems Optimization

‰A Cross-cutting approach, not specific to


particular sectors or industrial processes, but
applicable over the entire industry sector.

‰A focus on the transfer of knowledge and skills


through training. Developing Capability to
Analyse Industrial Energy Systems rather than
offering “Ready-made” Solutions. .

12
Why are industrial energy systems important?

‰ Steam and motor-driven systems account for more than


50% of final manufacturing energy use worldwide
‰ Energy savings potential from cost-effective optimization
of these systems for energy efficiency is estimated at 10-
12 EJ of primary energy1
‰ A global effort to cost-optimize industrial systems for
energy efficiency could achieve these energy savings
through
ƒ WKHDSSOLFDWLRQRIFRPPHUFLDOO\DYDLODEOHWHFKQRORJLHV
ƒ LQH[LVWLQJDQGQHZLQGXVWULDOIDFLOLWLHV
1 2007 IEA Statistics

13

Capacity Building - Preparation

‰ Develop training materials, analytical tools and software


(used in all countries, translated into national language.)

‰ Identification of trainees in the Philippines.

‰ Location of factories and classroom training facilities in


Vietnam. Approvals.

‰ Obtaining factory operating data. (site visits)

‰ Obtaining measuring and monitoring equipment for


systems optimization.

14
Capacity Building for systems optimization

‰ Evaluating energy requirements in factory.


‰ Matching system supply to these requirements
‰ Eliminating or reconfiguring inefficient uses and
practices (throttling, open blowing, etc)
‰ Changing out or supplementing existing equipment
(motors, fans, pumps, compressors) to better match
work requirements and increase operating efficiency

15

Training on systems optimization.

16
Systems improvements in China

Total Cost Energy savings Payback


System / facility
[$US] [kWh/y] Period
Compressed air/forge plant 18,600 150,000 1.5 years
Compressed Air/machinery 32,400 310,800 1.3 years
Compressed air/tobacco 23,900 150,000 2.0 years
Pump system/ hospital 18,600 77,000 2.0 years

Pump system/ pharmaceuticals 150,000 1.05M 1.8 years

Motor systems/ petrochemicals 393,000 14.1M 0.5 years

17

Industry participation in the project

The level of participation in the project will


be the decision of each company, and
might include:
‰staff time to participate in training sessions,
implement operational improvements and
an energy management system, and
‰investment in energy saving improvements.

18
Project Participation

Factories will also be recruited as training


sites They will have the opportunity to work
with international experts and to receive at
least one system energy assessment in
exchange for allowing access to their
facilities. These factories will also receive
positive publicity for their role in the project.

19

Project Participation

Company managers will be invited to


participate in a ½ day workshop on energy
management. Interested managers will be
invited to send representatives to 1-day
training sessions offered on energy
management and systems optimization.

20
This week and the next 6 months

‰ Conduct the UNIDO survey to collect data and information


on energy use in industry.
‰ Factory visits to validate assumptions.
‰ Obtaining government statistics on industrial energy use.
‰ Interviews with suppliers/vendors of motors, boilers,
pumps, steam components….etc.
‰ Write the full GEF project proposal.

21

Project Development - Survey

‰To raise the awareness of industry in the


Philippines about the UNIDO/GEF project
‰To collect industry views on energy efficiency and
energy management.
‰To determine the baseline of current industrial
energy efficiency practice.
‰Calculation of expected greenhouse gas
emissions reductions from the project.

22
Thank you for your
attention..

For more information:


Robert Williams
[email protected]

23
JOB DESCRIPTION 11-5X
Project No: GF/PHI/09/001

Post title: Industrial Motor/Pumps Systems Expert


Duration: 3 w/m over 2 months
Date required: 25 June 2009 through 31 August 2009
Duty station: Home base (HB); mission to Manila
Missions Manila (8 days DSA) 4-11 July 2009

Background

“Industrial Energy Efficiency” Project in Philippines


The rate of industrialization in the Philippines is reflected in rapid growth of the manufacturing sector and increased
energy consumption. The Industrial sector accounts for 25.4% of the total final energy demand. The Philippines has
been recording an impressive 7.3 % GDP growth rate in the 1st quarter of 2007; the imperative now is to ensure a
stable supply of energy to meet future economic growth targets. Energy savings potential in industry is substantial.
The Philippines with its emerging and expanding industrial infrastructure has particular opportunity to apply system
optimization best practice in existing and new facilities.

Energy Intensive industries will be the target sector of the project, specifically, (a) Cement; (b) Sugar; (c)
Electronic; (d) Steel; (e) Chemical; (f) Food (to be selected); (g) automotive; (h) ceramic.
Companies will be invited by the Philippine Department of Energy (PDOE) to participate in this project. They will
be selected based on their active participation with the governments’ energy efficiency and conservation program.
Many industrial establishments complies with the PDOE reportorial requirements under Department’s Memorandum
Circular 93-03-05 which requires them to submit Quarterly Energy Consumption report and an Annual Energy
Conservation Program. The priority industrial establishments to be selected will be those who are already recipient
of the local Energy Efficiency Award (the Don Emilio Abello Energy Award) given annually by the PDOE. All of
these awardees are compliant with the Department’s Circular.

As elsewhere, in the Philippines markets and policy makers typically focus on individual system components, such
as motors, pumps or boilers, with an efficiency improvement potential of 2-5% instead of optimizing the entire
systems. Large savings can often be achieved by analyzing and then optimizing the complete motor and steam
systems. System energy efficiency requires attention to the whole production scheme and offers substantial energy
saving opportunities. The estimated potential for improvement in systems is 20 to 25% for motor systems and 10 to
15% for steam systems. It is the overall efficiency of the system that is the key - most systems lose on average
approximately 55% of their input energy before reaching the process or end-use work.

1
With regard to financing or loans for energy efficiency investments, the Development Bank of the Philippines
(DBP) has a (Php. 3.84 Billion) loan portfolio for Energy Efficiency Related Projects under its Environment
Development Program. The DBP is utilizing the borrowed funds from the Japan Bank for International Cooperation
(JBIC) for its Environment Development Program. The lending program provides concessional terms to borrowing
companies. Interest rate is 9.5- 10%, lower than commercial lending rates of 13-15%. Payment periods are up to 15
years with grace periods of 2-3 years, more favorable than usual 5- 10 years repayment periods of industrial loans.
The next funding facility from the JBIC is expected before the end of 2008 amounting to Php 10 Billion.

Energy Management Standards constitute a viable policy tool and market-based mechanism for effecting sustainable
energy efficiency in industry. They offer an expert and best practices - based framework for organizations and
enterprises to develop energy efficiency goals, plan interventions, prioritize efficiency measures and investments,
monitor and document results and ensure continuity and constant improvement of energy performance. Standards
will be instrumental in shifting the market for energy-consuming equipment from component-based solutions to
sustainable energy management - including the purchase and provision of products and services that result in the
optimization of industrial energy systems.

In February 2008, the Technical Management Board of ISO approved the establishment of a new project committee
(PC 242) appointed to develop the new ISO Management System Standard for Energy (ISO 50001). UNIDO is
actively engaged with the provision of technical inputs to PC 242. The Secretariat of PC 242 has been assigned to
the partnership of the American National Standards Institute (ANSI) and the Brazilian Association for
Standardization (ABNT). ISO PC 242 currently includes 20 member countries and 5 observer countries. The
working draft of the new standard is planned to be ready by March 2009. Publication is expected by the end of 2010.
As of October 2007, the Philippines ISO registration reached to almost 1,500 for ISO 9001 certifications and 500 for
ISO 14001certifications. Prior experience with similar industrial management standards (quality and environment)
is already available in the country.

Though both system optimization approach and energy management standards are applicable to every sector, the
project will primarily target energy intensive industries. The sectors will be selected after in close consultations with
the Department of Energy. The stakeholders will be involved from the project design phase and their commitment
will be sought. Some of the industries/plants will be identified during the PPG phase and the rest of selection will
be completed during the implementation stage. Within the scope of the PPG as part of activities targeted to define
the existing baseline for energy management and efficiency, UNIDO plans to execute national surveys in industry.
UNIDO will make use and build on its survey on energy management in industry piloted in Singapore in July 2008.
The planned survey will start raising the level of awareness of industry about energy efficiency and energy
management standards.

Goal of the project:

The project is intended to improve energy efficiency by implementing the components on policy, capacity building
and demonstration projects. The project will build capacity of stakeholders including industrial enterprises,
equipment suppliers, distributors, engineering/energy service companies and government planners to develop
services focused on capturing system level efficiencies. Estimated potential for improvement in systems efficiency is
20 to 25% for motor systems and 10 to 15% for steam systems. With introduction of ISO energy management
standards, energy efficieny will be integrated into management systems of industrial enterprises to accelerate
adoption of energy efficient best practices on continuous basis that will result into improved reliabity of the
operations and productivity of enterprises. In addition, the competitive position of companies will be enhanced
through their eventual incorporation of energy efficient-operation into the ISO certification process. The project will
also contribute substantially to meeting Indonesia’s goals for reduction in energy intensity, energy elasticity and
greenhouse gas emissions. The project will have the following five components:

Component 1: National program to implement ISO energy management standard and recognition programs
The main outcome from this component is compliance to a policy instrument that encourages industrial enterprises
to adopt ISO energy management standards to deliver sustainable improvements in industrial energy efficiency and

2
improve competitiveness. The energy management standards will provide enterprises with a management structure
and process for continuously improving operational energy efficiency resulting a change in corporate culture
through integration of energy efficiency in the management systems.
The outputs from the project include:
x Industrial facilities understand importance of energy management standard and undertake energy
management planning
x Structure in place for reporting energy intensity improvements for any plant implementing the standard
x National awareness campaign on the benefits of energy management
x National recognition program established for industrial facilities that comply with the energy
management standards
x Use of preferred suppliers encouraged through targeted incentives

Component 2: Technical assistance to build capacity through tools and training on Energy Management, including
industrial systems optimization, to enable industries comply with ISO standards

This capacity building component will lead to create a cadre of energy efficiency professionals both within
industrial facilities as well as consultants and suppliers to initiate a process to transform local markets to effectively
manage energy and optimize industrial systems. The outputs from the project include:
x Web-based guidance tools on industrial systems developed
x Energy management and system optimization experts offer awareness training to industry representatives
x Plant engineers trained on the use of system optimization library
x Suppliers of energy efficient products and services trained on the system optimization

Component 3: Financial capacity development to support energy efficiency projects in industry


The expected outcome from this component is the availability of financial and institutional support for industrial
energy efficiency initiatives. The outputs from the project include:
x Capacity of government institutions, local banks and financial institutions built to promote and invest in
industrial energy efficiency projects
x Industrial enterprises trained in preparation of bankable energy efficiency project proposals
x A tailored portfolio of financial incentives of low interest loan and or loan guarantees is facilitated to
participating enterprises for investments in energy efficient technologies and energy efficiency systems
optimization projects and additional projects resulting from standards implementation

Component 4: Energy efficiency investment projects


This component will demonstrate operational projects resulting from adoption of energy management standards and
system improvement projects to make operations of enterprises more energy efficient and cultivate energy efficiency
practices into corporate management. The outputs from this component are:
x Plant assessments conducted in participating enterprises from selected sectors
x Operational projects implemented to comply with the standards
x Energy management and system experts assist industrial enterprises in assessing, developing and
implementing energy efficiency projects
x Results of system optimization projects and operational projects complying with the standards promoted
and disseminated.

Component 5: Project management

3
This component deals with the management of four components mentioned above.

With the implementation of the above components, it is expected that by the end of project, there will be a critical
mass of demonstration system optimization projects and operational projects resulting from adoption of energy
management standards; and a cadre of energy efficiency professionals both within industrial facilities as well as
consultants and suppliers. The baseline scenario and results from demonstration projects will be disseminated
through the workshops/seminars for further adoption of energy management standards and application of system
optimization approach by industrial enterprises. The combination of a policy instrument on energy management
standards and capacity building of industrial energy efficiency professionals, is likely to ensure that more of
industrial energy efficiency projects will be developed and replicated even after completion of the GEF project.

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