Industrial Energy Management: An Overlooked Opportunity

Improved energy efficiency will account for two-thirds of avoided greenhouse gas (GHG) emissions in 2030 (IEA, 2006). Since the industrial sector represents more than one third of both global primary energy use and energy-related carbon dioxide emissions, improving energy efficiency in the industrial sector is critically important for meeting this goal.  

An energy management standard is needed to influence how energy is managed in an industrial facility.  Energy management works- companies that have voluntarily implemented energy management plans have achieved energy savings of 20% or more, with corresponding reductions in GHG emissions.  

Work by an LBNL researcher with the United Nations Industrial Development Organization and the U.S. Department of Energy was a primary influence on a decision by the International Organization for Standardization (ISO) to develop ISO 50001-Energy management.  Representatives from 33 countries, under the leadership of the US and Brazil, are developing a standard with broad applicability in the commercial and industrial sectors that could influence up to 60 percent of the world’s energy demand.

Energy management seeks to apply to energy the same culture of continuous improvement that has been successfully applied by industrial firms to quality and safety practices.  ISO 50001 has the potential to become a global trade catalyst for industrial energy efficiency in the same way that ISO 9001 has for quality.  The reason lies in the fact that industrial energy management makes good economic sense, leading to cost reduction and improved reliability, thereby contributing to greater productivity and improved competitiveness.

Energy management provides a proven pathway for industry to respond effectively to the global call for reducing GHG emissions without sacrificing productivity and profitability.  Energy management can be approached immediately and incrementally, using existing technologies and existing industrial infrastructure, and without large capital outlays for process changeover.  

The opportunities for improving the efficiency of industrial facilities are substantial, on the order of 20-30%, even in markets with mature industries that are relatively open to competition. Experience in both developed and developing countries has demonstrated that industrial facilities will not achieve energy efficiency through the competitive pressures of the marketplace alone. Effective public policy is needed to capture this missed opportunity.

Lead:  Aimee McKane [1]

See also:  Energy Management & Standards [2]

Sources:

International Energy Agency, World Energy Outlook. 2006; Tracking Industrial Energy Efficiency and CO2 Emissions. 2007 [3]

Certifying Industrial Energy Efficiency Performance: Aligning Management, Measurement, and Practice to Create Market Value; McKane, et al 2007 [4]

Sectoral Trends in Global Energy Use and Greenhouse Gas Emissions; Price, et al 2006 [5]

Raising Standards: ISO Management System Standard for Energy [6]