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(1)

Status of Low Carbon Technologies (Energy Efficiency) for MSMEs in the APEC

Improving Micro, Small and Medium Enterprises (MSMEs) Competitiveness Through Low Carbon Economy

Mr. Ruamlarp Anantasanta Excellent Energy International Company Limited Thailand [email protected]

23 June 2016

Manila, Philippines

(2)

Excellent Energy International Co., Ltd. (EEI):-

 A well-known ESCO (Energy Service

Company) in Thailand established since 1999 with the registered capital of 26 MB

 An ESCO who offers guaranteed-payback on EE/RE* projects for clients in various Industries and Commercial buildings

The first one, and only ESCO in Thailand who successfully implemented “Thailand ESCO Pilot Project” with excellent base of support from the Thai Government & the World Bank.

*Energy Efficiency/ Renewable Energy

 An ESCO with Over 6,000 MB of on-going projects distributed over Cogeneration system, Renewable Energy, Plant Monitoring System (PMS), Heat Recovery projects, etc.

Awarded 5 consecutive years of “ESCO Excellence Award 2009 - 2013”, by The Federation of Thai Industries, supported by the Ministry of Energy, to the leading ESCO of Thailand.

The only ESCO in Thailand whom was invited to contribute a regional perspective as a Co-writer in two books of World- God Mother of ESCO, Dr.

Shirley Hansen!!!

Namely “ ESCOs Around The World:

Lessons Learned in 49 Countries”(published in 2009) and

“World ESCO

Outlook”

(3)

Some of EEI Clients

Commercial Building

Government Agency / International organization / Bank / Financial Institutions

Industry

(4)

ECMs for Industrial Facility

ECMs for Commercial Building

Ozone for Laundry Heat Pump

Gas Turbine Steam Turbine

Gas Engine Biogas

Coal Biomass Natural Gas

Cogeneration System

Absorption Chiller Waste Heat Recovery / ORC

Refrigeration &

Boiler System HVAC

Motor Optimization Lighting

(Energy Management EMIS Information System)

Productivity Improvement

Power Generation – Renewable Energy Plant Simple Cycle

Gasification

Biomass Power Waste to Energy Solar Power Plant

EEi’s Solution

(5)

Overview of Low Carbon Technologies (EE) for MSMEs in APEC (especially SEA)

Thailand Philippines Vietnam Malaysia General

MSMEs Asset Employee

SMEs

(1)

<200 MTHB($5.7M)

< 200 person

MSME

(2)

<100 MPHP($2.6M)

< 200 person

SMEs

(3)

<$25M (Revenue)

< 500 person

SMEs

(4)

< 300 MJPY($2.8)

< 300 person Technologies

Chiller

Replacement Absorption Chiller

(waste heat) Absorption Chiller (biomass-powered)

Boiler System Economizer Economizer Economizer Economizer

Furnace Regenerative

Burners/

Recuperator

Lighting LED/T5 Compact Fluorescent

Lamps (CFLs) Refrigeration &

HVAC Energy Labeling,

Heat Pump Energy Labeling for

RACs*, etc. Energy Labeling Energy Labeling

Ozone Ozone for Laundry

Source:

(1) The Revenue Department (Thailand) (3) United States International Trade Commission

(6)

Raw Material

Products By-Products

Energy Input

Energy

Losses & Wastes

Production

Losses & Wastes

Energy Efficiency Process Model

Utilities

Utility

Losses & Wastes Human Control Environment

Process

Useful Energy

(7)

Energy Efficiency = Useful Energy x 100%

Energy Input

= Energy Input – Energy Losses x 100%

Energy Input

Energy Efficiency Process Model

(8)

Sample of Low Carbon Technologies (Energy Efficiency: EE)

Energy Efficiency in process which use Electricity

Transformer and Electrical System

Motor and Drive System

Pump and Fan System

Compressed Air System

Refrigerant and HVAC System

Lighting

etc.

Energy Efficiency in process which use Thermal Heat

Steam Generator System

Hot Oil Boiler System

Furnace/Burner

Dryer System

etc.

(9)

Transformer and Electrical System

Transmission Line

Power Plant

Main-Station

Sub-Station Transformer

Office Building Factory

Production

(10)

Loss in Electrical System

No Load Loss + Load Loss: 1-2%

(Transformer)

Copper Loss: 3-5%

(Cable and Equipment)

Harmonic Loss

Transformer Loss (Watt)

= No-Load Loss + (Load Factor 2 x Load Loss @ Full Load) Copper Loss (Watt)

= Current 2 x Cable Resistant

Transformer and Electrical System

Factory Production

Transformer

Office Building

(11)

Reduce energy loss in the core By using high quality of silicon steel to cut and paste overlap layers with Step Lab Core, reducing noise and power loss at the core 8-15 %

Transformer and Electrical System

Low-Loss Transformer

(12)

Reduce energy loss in the coil By adding more mixture of copper conductor materials and use high-end technology to reduce the electrical resistance of the coil . And improved insulation to reduce the chance of a short circuit between the coils

Transformer and Electrical System

Low-Loss Transformer

(13)

Supply

Drive

Motor

User Transmission

Source: ETSU, UK

Motor & Drive System

(14)

Designed to reduce power loss in the motor

General Motor High Efficiency Motor

Source: CDC-SEA

Motor & Drive System

(15)

It works by changing the frequency and the voltage input to control the motor speed and torque of the motor

Motor & Drive System

• Reduce energy loss from friction and mechanical transmission

• Speed Adjustable

• Able to control the current and torque in the motor Start (Soft Start)

(16)

Absorption Chiller

Absorption Chiller Principle

Refrigerant = Water

Evaporator

Absorber such as Lithium Bromide: LiBr

Generator

Condenser

• Use for cooling from waste heat such as hot water or steam heat from the production process

• Suitable working with Cogeneration System for the additional production of cold water or replace the electric chiller

• The system is not complicated and Low Maintenance Cost

COP < 1

• The machine is equipped with a very large

space requirements, compared to conventional

cooling systems

(17)

Heat Pump

Benefits from Heat Pump

Can be used for Heating or Cooling

Do not burn oxygen ("eco-friendly“)

Save money and space

Reduce condensation

(18)

Lighting Efficiency = Lumen/Watt (lm/W)

Source : OMS, 2012

Lighting

(19)

T5 Highbay Fluorescent

HID Highbay

LED Highbay

Lighting

(20)

Comparison Before After Luminaire Information

Luminaire type HID High Bay T5 Fl High Bay

Lamp type 400W/MV T5-4x54W

Installation height 8-10 meters 8-10 meters

Luminaire efficiency (%) 70% 90%

Lamp Information

Lamp type Mercury Vapour T5 Fluorescent

Lamp wattage (W) 400 216

Initial lumen (lm) 22,000 17,800

Lamp life (hr) 20,000 20,000

Color rendering index 40-59 80-89

Ballast Information

Ballast type Standard Electronic

Ballast wattage (W) 31 8

Light Output

Initial lumen (lm) 22,000 17,800

Luminaire efficiency (%) 70% 90%

Light output (lm) 15,400 16,020

Light output (%) 100% 104%

Energy Consumption

Lamp consumption (W) 400 216

Ballast consumption (W) 31 8

Total consumption per set (W) 431 224

Investment

Investment per set (Baht) 0 6,500

Electricity price (Baht/kWh) 3.5 3.5

Operating hours per year 5,000 5,000

Savings

Electricity Saving (kWh/yr) - 1,035

Cost Saving (Baht/year) - 3,622.50

Payback period (year) - 1.79

T5 Highbay Fluorescent

HID Highbay VS.

Lighting

(21)

Lighting (LED)

LED

• Began to choice of lighting system due to type and energy saving

• High Efficiency >120 Lumen/Watt and tend to develop for more high efficiency

• The quality of light is better as same as fluorescent

• Less power consumption and long lifetime >50,000 hrs

• Still be careful about the quality and

durability of the electronic circuits

which used to control the lamp from

the environment impact

(22)

Energy Labeling

European Union Standard

1. The appliance's details: according to each appliance, specific details, of the model and its materials

2. Energy class: a color code associated to a letter (from A to G) that gives an idea of the appliance's electrical consumption 3. Consumption, efficiency, capacity, etc.:

this section gives information according to appliance type

4. Noise: the noise emitted by the appliance

is described in decibels

(23)

Sample of Low Carbon Technologies (Energy Efficiency: EE)

Energy Efficiency in process which use Electricity

Transformer and Electrical System

Motor and Drive System

Pump and Fan System

Compressed Air System

Refrigerant and HVAC System

Lighting

etc.

Energy Efficiency in process which use Thermal Heat

Steam Generator System

Hot Oil Boiler System

Furnace/Burner

Dryer System

etc.

(24)

Improved combustion efficiency

The cladding insulation

Boiler feed water

Blow down

Condensate return

Heat Recovery from Exhaust Gas (Economizer)

Steam Generator System

(25)

Furnace/Burner

Regenerative Burners

(26)

Source : Osaka Gas, Japan

Furnace/Burner

Regenerative Burners

(27)

Regenerative Burners

Furnace/Burner

(28)

Convection Recuperator

Recuperator

(29)

Source: Energy Information Administration Statistics, Pew Center for Global Climate Change At: Energy Wise: Exploring Prospects for Energy Efficiency in Cambodia & Indochina,

• The Buildings sector accounts for 30% - 40% of global energy use.

76% of all power plant-generated electricity is used to operate

buildings globally.

• New York 79%

• Bangkok 34%

• Hong Kong 88%

• Tokyo 60%

• Singapore 55%

• Jakarta 22%

In large cities buildings are the single highest contributor to greenhouse gas emissions

Buildings

(30)

Full building approach (allows building owners to save more)

The Opportunities/Approach

Source: Energy Wise: Exploring Prospects for Energy Efficiency in Cambodia & Indochina, Southeast Asia Energy Efficiency Initiative, ADB

(31)

Technology exists to reduce energy consumption by at least 50%

Source: Energy Wise: Exploring Prospects for Energy Efficiency in Cambodia & Indochina,

(32)

Project Portfolio - Asia

Clinton Foundation – Energy Efficiency Building Retrofit Program

6 years, 9 countries, 153 Buildings Retrofitted across SEA, Japan, Korea, and Hong Kong

Portfolio Overview

TOTAL Investment (US$) $89,552,463

TOTAL Energy Cost Savings (US$) $14,796,730

TOTAL mtCO2e reduction per year 90,420

Averages Per project

Average Investment Amount (USD) $585,310

Average Savings Amount (USD) $96,711

Average Simple Payback (years) 6.05

Average bldg utility savings 18.17%

Source: Energy Wise: Exploring Prospects for Energy Efficiency in Cambodia & Indochina, Southeast Asia Energy Efficiency Initiative, ADB

(33)

Energy Conservation Measures Cost

(US$) Savings

(US$) Payback

(Years)

Upgrade Chiller Plant $125,714 $20,247 6.2

Variable Primary Flow $7,143 $2,069 3.5

Lighting Retrofit with LEDs $91,996 $45,841 2.0

Hot water heat pump $88,571 $18,546 4.8

Conversion of Electric heater boiler to LPG Gas Boiler $150,000 $64,724 2.3

Cooling Tower Optimization $22,923 $1,145 20.0

Upgrade 2nd Chiller Plant $129,943 $19,199 6.8

Convert Secondary pump to Variable Flow $29,086 $7,747 3.8

Convert split A/C to Chilled Water coil in kitchen $9,137 $1,284 7.1

Total US$654,514 180,801 3.6

Savings from baseline consumption 14.5%

Total Greenhouse Gas Reduction 824 mtCO2e per year

Source: Energy Wise: Exploring Prospects for Energy Efficiency in Cambodia & Indochina,

Sample Hotel Project

(34)

The Opportunity

(35)

Industrial Market Potential & Savings

Source: ReEx Capital. Southeast Asia Energy Efficiency Market Report 2011

(36)

Energy Efficiency Status in South East Asia

Source: Copenhagen Centre on Energy Efficiency (SE4ALL Energy Efficiency Hub), August 2015

Energy efficiency status and opportunities in selected Asian countries

(37)

Energy Efficiency Status in South East Asia

Source: Copenhagen Centre on Energy Efficiency (SE4ALL Energy Efficiency Hub), August 2015

Energy efficiency status and opportunities in selected Asian countries These cross-sectoral barriers include:

Lack of information among stakeholders;

Subsidized energy prices;

Lack of experience and knowledge on energy efficiency technologies ,

Lack of understanding the benefits and risks among financial stakeholders;

Scarcity of affordable funding options;

Lack of technical capacity to implement projects; and

Lack of clarity over the division of labour between relevant agencies.

(38)

Energy Efficiency Status in South East Asia

Energy efficiency programmes in…

Title Details Sectoral coverage

T hail and

Energy efficiency

Networking Through a voluntary agreement with major corporate (such as the Thai Chamber of Commerce, the Federation of Thai Industry,

commercial banks, etc.), the government develops public-private partnerships (PPP) to strengthen EE promotional activities

All sectors

Government co-

investment programme (ESCO fund)

The ESCO fund was created to allow access to financing for smaller businesses, which would otherwise be unable to obtain funding from commercial banks. Thailand now has an ESCO Association that allows networking among ESCOs.

Industry

Source: Copenhagen Centre on Energy Efficiency (SE4ALL Energy Efficiency Hub), August 2015

(39)

Policy Approach

Mandatory Measures

Financial Supports

Labeling Program Direct

Subsidy

Soft Loan

Tax Incentive

ESCO+

ESCO Fund 1. Industries

1.1 Large Energy Users 1.2 SMES

 -

- 

- -

2. Buildings

2.1 Gov. Buildings 2.2 Private Buildings

• LED

• Solar Roof

- 

3. Residential - - -

4. Transportation - - • ECO-Car

• New Excise Tax

- -

(for Large Building)

Pr ovide d by Com m erc ia l Bank s such as

125 % Tax Credit

BOI

(40)

Energy Efficiency Status in South East Asia

Energy efficiency programmes in…(con’t)

Title Details Sectoral coverage

Ind one si a

Energy-efficient lighting programme in the

residential sector.

This is primarily a demand side management (DSM) programme. This programme provides subsidies, and in certain cases, free CFLs to eligible house-holds

Building, residential

Promoting Energy Efficiency in the Industries through

System Optimization and Energy Management Standards

Supported by UNIDO, this programme targets four priority industrial sectors, i.e. textiles and

garments, pulp and paper, foods and beverages, and chemicals. The programme aims to achieve energy efficiency in the industrial sector through capacity-building in both skills development and improvements in financial capacity

Industrial

Source: Copenhagen Centre on Energy Efficiency (SE4ALL Energy Efficiency Hub), August 2015

(41)

Energy Efficiency Status in South East Asia

Source: Copenhagen Centre on Energy Efficiency (SE4ALL Energy Efficiency Hub), August 2015

Energy efficiency programmes in…(con’t)

Title Details Sectoral coverage

M al ay si a

Building Sector Energy Efficiency Project

(BSEEP)

This initiative aims to make energy-efficient low carbon buildings, to achieve 55% energy efficiency implemented in buildings by 2015, to develop a market for energy retrofits for existing buildings by 2015, and to promote a general acceptance of EE principles in the building industry

Building

Industrial Energy

Efficiency for Malaysian Manufacturing Sector

This is a GEF-funded programme implemented by UNIDO. The programme aims to promote energy efficiency improvements in the Malaysian

manufacturing sector through the implementation of national energy management standards and the introduction of system optimization. The

programme ensures that two essential criteria are met: (i) it must reflect national priorities and have the support of the country; and (ii) it must

improve the global environment or improve the prospects of reducing risks to it

Industry

(42)

Energy Efficiency Status in South East Asia

Energy efficiency programmes in…(con’t)

Title Details Sectoral coverage

Phil ipp ine s

Philippine Industrial Energy Efficiency Project (PIEEP)

This is a UNIDO-GEF funded project (2011–17) implemented with co-financing from DOE and

national commercial banks. It aims to introduce an ISO 50001 Energy Management System

Framework along with a system optimization

approach for the improvement of industrial energy efficiency in the Philippines

Industrial

Philippines Chiller Energy Efficiency Program

The GEF-funded Philippines Chiller Energy

Efficiency Programme is being implemented by the Department of Environment and Natural Resources and aims to replace inefficient CFC-based chillers with new and efficient non-CFC chillers

Industry

High Efficiency Motor

Program The High Energy Efficiency Motors (HEM)

program, funded by USD1.9 million from the EU’s SWITCH-Asia Programme, is being implemented by a consortia of a number of organizations, including IIEE, ICA, and ASSIST. This programme aims to showcase and promote high-efficiency motors and drive systems in the sugar industry

Industry

Source: Copenhagen Centre on Energy Efficiency (SE4ALL Energy Efficiency Hub), August 2015

(43)

Energy Efficiency Status in South East Asia

Energy efficiency programmes in…(con’t)

Title Details Sectoral coverage

Vie tn am

Energy Efficiency Promotion in the Building Sector

The USAID Vietnam Clean Energy Programme–

Energy Efficiency Promotion in the Building Sector supports the Government of Vietnam’s (GVN) Green Growth Strategy and related action plan.

The project partners with the Ministry of Construction (MOC) to reduce electricity

consumption in the country through improved energy efficiency in the building sector by implementing the Vietnam Energy Efficiency Building Code (VEEBC) and promoting a green building programme

Building

Vietnam Energy

Efficiency and Cleaner Production Financing

Funded by the IFC, the Vietnam Energy Efficiency and Cleaner Production (EECP) Financing Programme aims to reduce greenhouse gas emissions and improve resource utilization by increasing the financing available for cleaner production and energy efficiency investments. The project works with selected commercial banks to build market strategies and tailored financial products, and targets enterprises looking to upgrade their production systems and technologies to achieve greater energy efficiency, cost savings, productivity, and environmental performance

Industry

(44)

Excellent Energy International Co., Ltd. (EEI) 12

th

Fl., Siripinyo Bldg., 475 Sri-Ayudhaya Rd.,

Thanon Phyathai, Rajthevee, Bangkok, THAILAND, 10400 T. +66 2201 3466-7, +66 2640 0270

F. +66 2201 3465

http://www.eei.co.th [email protected]

Thank you

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