More than fifteen years after the launch of programs in the U.K. and U.S., industry still offers one of the largest opportunities for energy savings worldwide. The International Energy Agency (IEA) estimates the savings potential from cost-optimization of industrial motor-driven systems alone at 7% of global electricity use.  The U.S. Department of Energy (USDOE) Industrial Technologies Program estimates 7% savings potential in total US industrial energy use through the application of proven best practice.  Simple paybacks for these types of projects are frequently two years or less.  The technology required to achieve these savings is widely available; the technical skills required to identify energy saving opportunities are known and transferable. Although   programs  like  USDOE's  BestPractices  have  been  highly successful,  most  plants,  as  supported  by 2002 MECS data, remain either unaware  or unmotivated to improve their energy efficiency- as evidenced by the  98% of US industrial facilities reporting to MECS say that they lack a full-time energy manager.

With the renewed interest in energy efficiency worldwide and the emergence of carbon trading and new financial instruments such as white certificates[1], there is a need to introduce greater transparency into the way that industrial facilities identify, develop, and document energy efficiency projects.   Historically, industrial energy efficiency projects have been developed by plant engineers, frequently with assistance from consultants and/or suppliers with highly specialized technical skills.  Under this scenario, implementation of energy efficiency improvements is dependent on individuals.  These individuals typically include “champions” within an industrial facility or corporation, working in cooperation with consultants or suppliers who have substantial knowledge based on years of experience.  This approach is not easily understood by others without this specialized technical knowledge, penetrates the market fairly slowly, and has no assurance of persistence, since champions may leave the company or be re-assigned after project completion.

This paper presents an alternate scenario that builds on the body of experty knowledge concerning energy management best practices and the experience of industrial champions to engage industry in continuous energy efficiency improvement at the facility rather than the individual level.  Under this scenario, standardized methodologies for applying and validating energy management best practices in industrial facilities will be deveolped through a consensus process invoving both plant personnel and specialized consultants and suppliers.  The resulting protocols will describe a process or framework for conducting an energy savings assessment and verifying 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 Nations Industrial Deveopment Organization (UNIDO) concerning the development of an international industrial energy management standard that would be ISO-compatible.  The proposed scenario will combine the resulting standard wit the best practice protocols for special eenrgy systems (i.e., steam, process heating, compressed air, pumping systems, etc.) to form the foundation of a third party, performance-based certification program for the overall industrial facility that is compatible with existing management systems, including ISO 9001:2000, 14001:2004 and 6 Sigma.  The long therm goal of this voluntary, industry-designed certification program is to develop a tansparent, glogally accepted system for validating energy efficiency projects and management practices.  This system would create a verified record of energy savings with potential market value that could be recognized among sectors and countries.

[1] This concept is being tested in the EU as part of a trading system for energy-efficiency measures and resulting energy savings. The savings are verified by the regulator and certified by means of “white” certificates.