Electricity saving

Utilities and Governments are Wasting Millions of Dollars Subsidizing A Wrong Technology for Motor Systems Efficiency

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According to the International Energy Agency (IEA), electric motor systems consume more than half of global electricity. Industrial electric motor systems account for over 70% of total global industrial electricity usage. Electric motors operate fans; pumps; and materials-handling, compressed-air, and processing equipment.

Because motor efficiency improvements will only marginally increase the motor system’s efficiency, we must look to improve the efficiency of the equipment and systems being driven by the motor. Optimization measures such as predictive maintenance, avoiding oversized motors, and matching motor systems to specific needs, etc. could improve the energy efficiency of motor-driven systems significantly. Even more savings can be achieved by looking not only beyond the motor to the whole motor system but beyond the system to the end-use device, as shown in Figure below.

Figure. Illustration of two industrial electric motor-driven systems: (a) normal and (b) efficient (IEA 2016)

Figure. Illustration of two industrial electric motor-driven systems: (a) normal and (b) efficient (IEA 2016)

The traditional approach in most states and countries has been to focus on motors only and not on entire motor systems. As shown above, while increasing motor efficiency saves energy, optimizing the entire pump system will save much more energy. There is a need to shift the paradigm to focus on systems rather than individual motor efficiency. Programs and policies that target systems can save more energy and CO2 emissions in a more cost-effective manner than programs that focus only on motors.

Many utilities in the U.S. and governments around the world give substantial rebate for replacing electric motors with more efficient ones. While this may sound like a good thing to do, our extensive studies for 30 states in the U.S. and over 10 countries around the world shows that it is a clear waste of money. Why? Because in most cases, replacing existing motor with a more efficient one can improve the entire system efficiency by 1% - 5% (depending on the baseline efficiency of the systems). On the other hand, there are many other systems efficiency/optimization measures that can result in up to 20% - 25% efficiency improvement in the system.

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For example, in a pump system with a Low efficiency baseline, replacing motor can only improve system efficiency by 5%, while trimming or changing impeller to match output to requirements can save about 15%, removing sediment/scale buildup from piping can save about 10% and installing variable speed drive (VSD) can save about 25% of the electricity use.

There is another very important reason why giving rebate for replacing motors with more efficient ones is such a waste of money in a massive scale. Our analysis consistently showed that replacing motor with more efficient one is by far one of the least cost-effective efficiency measures that can be implement on a motor system (for example in a pump systems or a fan systems). In other words, it cost much higher to save a kWh of electricity by replacing motor than to implement other system efficiency/optimization measures.

So, you might ask why many utilities and government prioritize giving rebate for replacing motors? The answer is it’s easier to implement and measure the saving. Utilities and government staff and program managers often need to show the amount of electricity saved as a result of implementing a rebate program. This is easier to do with equipment replacement than with soft measures such as system optimization. Having this said, many of the system optimization measures are easy to implement by in-house staff in the facilities.

To sum up, our detailed and extensive studies for three major industrial motor systems (pump systems, fan systems, and compressor systems) shows that millions of dollars spent annually by utilities and governments on rebate program for replacing electric motors with more efficient one is clearly waste of public and private funding. The better way would be to provide rebate for system efficiency measures that can save sometime up to 10 times higher energy saving with lower cost.

If utilities and governments persist to keep their motor replacement rebate program, my suggestion to them, based on the findings of our reports, is to bundle one or two efficiency measures with the motor replacement rebate. In other words, for an applicant to quality for motor replacement rebate, they should also implement one or two other system optimization measures from a list of measures that is predefined by utilities or government agencies.

To find out more about our detailed bottom-up studies for energy efficiency in industrial motor systems in the U.S., see our reports:

U.S. Industrial Motor Systems Energy Efficiency Reports Covering 30 States >>

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References:

IEA. 2016. World Energy Outlook 2016. Paris, France.
IEA, 2011. Energy efficiency policy opportunities for electric motor driven systems. Paris, France.


Global Efficiency Intelligence and UNIDO are Helping Egypt to Improve Industrial Energy Efficiency

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Egypt is the largest oil and natural gas consumer in Africa, accounting for about 20% of petroleum and other liquids consumption and around 40% of natural gas consumption in Africa. Increased industrial output, economic growth, energy-intensive natural gas and oil extraction industry, rapid population growth, rapid increase in vehicle sales, and energy subsidies are among key factors contributed to the rapid growth of energy consumption over the past few decades in Egypt.

Industry sector accounted for over 42% of natural gas, 86% of fuel oil, and 25% of total electricity consumption in Egypt in 2015. industrial electric motor systems account for over 70% of manufacturing electricity consumption.

Given its extensive experience on motor systems energy efficiency analysis, Global Efficiency Intelligence, LLC. has been working on a project for United Nations Industrial Development Organization (UNIDO) to conduct a study on electricity saving potential in industrial motor systems in Egypt. We are analyzing energy use, energy efficiency, and GHG emissions-reduction potential in industrial pump systems, fan systems, and compressed-air systems, which together account for over 70% of electricity use in industrial motor systems in Egypt. We will assess the cost-effectiveness of series of energy conservation measures that can be implemented on these motor systems in Egypt.

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Available Now: Reports on Electricity Saving Potentials in U.S. Industrial Motor Systems

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In the U.S., industrial electric motor systems account for over 70% of manufacturing electricity consumption. Motors are used to drive pumps, fans, compressed air systems, material handling, processing systems and more. Industrial motor systems represent a largely untapped cost-effective source for industrial energy efficiency savings that could be realized with existing commercialized technologies. A major barrier to effective policy making for government and utilities in the U.S. related to energy efficiency improvement in industrial motor systems is the lack of information and data on the magnitude and cost-effectiveness of these energy savings potential in each state in the U.S. and a comprehensive strategy and roadmap.

Global Efficiency Intelligence, LLC has been working on an initiative to study and analyze the industrial motor systems in different states in the United States. We have 30 States from different regions in the U.S. that are included in this initiative. All top 20 U.S. states in terms of industrial energy consumption are included in this initiative. We work with various public and private stakeholders on this project. This initiative focuses on industrial pumps, fans, and compressed air systems which together account for over 80% of electricity use in industrial motor systems in the U.S. We conduct various analyses at the state-level such as analyzing the energy use by each motor system type and system size at manufacturing subsector level (e.g. chemical, food, textile, steel, machinery, pulp and paper, etc.), analyzing energy saving potentials and cost by technology and system size for each state, analyzing barriers and drivers to energy efficiency and system optimization in industrial motor systems in each state, and analyzing policy making and market implications for each state.

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Infographic: The Iron and Steel Industry’s Energy Use and Emissions

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The iron and steel industry is one of the most energy-intensive and highest CO2 emitting industries and one of the key industrial contributors to air pollutions (PM, SO­2, etc.) in the world. The infographic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use and emissions in the iron and steel industry.

Global Efficiency Intelligence, LLC has experience conducting various projects and studies on energy efficiency, GHG and other emissions reduction, energy benchmarking, and technology roadmapping for the iron and steel industry in China, India, U.S., Germany, and Mexico.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

  • Hasanbeigi, Ali; Arens, Marlene; Rojas-Cardenas, Jose; Price, Lynn; Triolo, Ryan. (2016). Comparison of Carbon Dioxide Emissions Intensity of Steel Industry in China, Germany, Mexico, and the United States. Resources, Conservation and Recycling. Volume 113, October 2016, Pages 127–139

  • Zhang, Qi; Hasanbeigi, Ali; Price, Lynn; Lu, Hongyou; Arens, Marlen (2016). A Bottom-up Energy Efficiency Improvement Roadmap for China’s Iron and Steel Industry up to 2050. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL- 1006356

  • Morrow, William; Hasanbeigi, Ali; Sathaye, Jayant; Xu, Tengfang. 2014. Assessment of Energy Efficiency Improvement and CO2 Emission Reduction Potentials in India’s Cement and Iron & Steel Industries. Journal of Cleaner Production. Volume 65, 15 February 2014, Pages 131–141

  • Hasanbeigi, Ali; Price, Lynn, Aden, Nathaniel; Zhang Chunxia; Li Xiuping; Shangguan Fangqin. 2014. Comparison of Iron and Steel Production Energy Use and Energy Intensity in China and the U.S. Journal of Cleaner Production, Volume 65, 15 February 2014, Pages 108–119

  • Hasanbeigi, Ali; Arens, Marlene; Price, Lynn; (2013). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the Iron and Steel Industry. Berkeley, CA: Lawrence Berkeley National Laboratory BNL-6106E.

  • Hasanbeigi, Ali; Morrow, William; Sathaye, Jayant; Masanet, Eric; Xu, Tengfang. (2013). A Bottom-Up Model to Estimate the Energy Efficiency Improvement and CO2 Emission Reduction Potentials in the Chinese Iron and Steel Industry. Energy, Volume 50, 1 February 2013, Pages 315-325

  • Hasanbeigi, A., Price, L., Aden, N., Zhang C., Li X., Shangguan F. 2011. A Comparison of Iron and Steel Production Energy Use and Energy Intensity in China and the U.S. Berkeley CA: Lawrence Berkeley National Laboratory Report LBNL-4836E.


Infographic: Energy Use and Emissions in the Cement Industry

The cement industry is one of the most energy-intensive and highest CO2 emitting industries and one of the key industrial contributors to air pollutions (PM, SO­2, etc.) in the world. The inforgraphic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use and emissions in the cement industry.

Global Efficiency Intelligence, LLC has experience conducting various projects and studies on energy efficiency, GHG and other emissions reduction, energy benchmarking, and alternative fuel use in the cement industry in China, India, U.S., Southeast Asia, and the Middle East.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.


Some of our related publications are:

  • Hasanbeigi, Ali; Nina Khanna, Price, Lynn (2017). Air Pollutant Emissions Projection for the Cement and Steel Industry in China and the Impact of Emissions Control Technologies. Berkeley, CA: Lawrence Berkeley National Laboratory. 1007268

  • Hasanbeigi, Ali; Agnes Lobscheid; Hongyou, Lu; Price, Lynn; Yue Dai (2013). Quantifying the Co-benefits of Energy-Efficiency Programs: A Case-study for the Cement Industry in Shandong Province, China. Science of the Total Environment. Volumes 458–460, 1 August 2013, Pages 624-636.

  • Hasanbeigi, Ali; Morrow, William; Masanet, Eric; Sathaye, Jayant; Xu, Tengfang. 2013. Energy Efficiency Improvement Opportunities in the Cement Industry in China. Energy Policy Volume 57, June 2013, Pages 287–297

  • Hasanbeigi, Ali; Price, Lynn; Lin, Elina. (2012). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for Cement and Concrete  Production. Berkeley, CA: Lawrence Berkeley National Laboratory LBNL-5434E.

  • Morrow, William; Hasanbeigi, Ali; Sathaye, Jayant; Xu, Tengfang. 2014. Assessment of Energy Efficiency Improvement and CO2 Emission Reduction Potentials in India’s Cement and Iron & Steel Industries. Journal of Cleaner Production. Volume 65, 15 February 2014, Pages 131–141

  • Hasanbeigi, Ali; Menke, Christoph; Therdyothin, Apichit (2010). Technical and Cost Assessment of Energy Efficiency Improvement and Greenhouse Gas Emissions Reduction Potentials in Thai Cement Industry. Energy Efficiency. DOI 10.1007/s12053-010-9079-1

  • Hasanbeigi, Ali; Menke, Christoph; Therdyothin, Apichit (2010). The Use of Conservation Supply Curves in Energy Policy and Economic Analysis: the Case Study of Thai Cement Industry. Energy Policy 38 (2010) 392–405

  • Hasanbeigi, Ali; Price, Lynn; Hongyou, Lu; Lan, Wang (2010). Analysis of Energy-Efficiency Opportunities for the Cement Industry in Shandong Province, China: A Case-Study of Sixteen Cement Plants. Energy-the International Journal 35 (2010) 3461-3473.

    Infographic: The Profile of Energy Use in Industrial Motor Systems

    According to International Energy Agency, around half of the electricity used globally is consumed in electric motor systems. Industrial motor systems account for around 70% of manufacturing electricity consumption in different countries. The inforgraphic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use in motor systems worldwide.

    Global Efficiency Intelligence, LLC is working on Global Motor Systems Efficiency Initiative and the U.S. Motor Systems Efficiency Initiative (covers 30 states in the U.S.) to analyze the energy use in industrial motor systems and energy efficiency potentials in these systems at manufacturing subsectors level in different countries or states in the U.S. For more information, click on the links above to see our projects page.

    Available Now: U.S. Industrial Motor Systems Energy Efficiency Reports >>

    Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.