Transcript Slide 1

UNIDO – GEF Partnership
Energy Efficiency in Industry
CSP Sub-regional Workshop for GEF Focal
Points in Europe/CIS
14-15 April 2010, Istanbul, Turkey
Prepared by:
Marco Matteini
Industrial Energy Efficiency Unit
Presented by:
Yury Sorokin
Refrigeration and Aerosols Unit
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Outline
 About UNIDO
 Context
 UNIDO Industrial Energy Efficiency (IEE)
Program
 UNIDO - GEF Partnership and the IEE
chapter
 Challenges
 Lessons learnt
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About UNIDO

UNIDO’s mandate is to promote
sustainable industrial development.
Technical Co-operation
areas:
 Industrial Governance and Statistics


UNIDO is the only specialized agency
promoting the creation of wealth and
tackling poverty alleviation through
support to industry and manufacturing
sector development
 Investment and Technology Promotion
Three inter-related thematic priorities:
 Sustainable Energy and Climate
Change
 Poverty Reduction through
Productive Activities
 Trade Capacity-Building
 Industrial Competitiveness and Trade
 Private Sector Development
 Agro-Industries
 Montreal Protocol
 Environmental Management
 Energy and Environment
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UNIDO - GEF Partnership
and the IEE chapter
 Until Dec 2006, only three GEF Implementing Agencies:
UNDP, UNEP, World Bank
 UNIDO mainly Executing Agency  access to GEF funds
through them. Limited exception for POPs
 Dec 2006, UNIDO gets Direct Access to GEF funds
 UNIDO Comparative Advantage: Climate Change,
International Waters, Biodiversity,Chemicals: POPs, ODS,
mercury.
 Dec 2009, cumulative approvals of UNIDO projects
amounting to a total of US$ 257 million
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GEF4: UNIDO/IEE Projects Portfolio
15 countries:
Cambodia
Ecuador
Egypt
India
Indonesia
Iran
Malaysia
Moldova
Philippines
Russia
Sri Lanka
Thailand
Turkey
Viet Nam
Ukraine
GEF funded projects
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Context for Industrial Energy Efficiency
Source: IEA
 Industrial energy use globally
accounts for
– 40% of electricity use
– 77% of coal and derivatives use
– 37% of natural gas use
Increased nuclear
Increased Renewables
29%
Reference Scenario
and 1/3 of global CO2 emissions1
 Industry has the potential to
reduce its energy intensity and
emissions up to 26–32%,
providing a 8-12% reduction in
total energy use and CO2
emissions2
13%
Power sector efficiency
& fuel
29%
Alternative
Policy Scenario
Electricity end - use efficiency
Fossil fuels end -use efficiency
Potential CO2 emission reductions from
different policy options
1,2
Source: IEA, 2006 and 2007
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Why Isn’t Industry More Energy Efficient?
 Policy and regulatory frameworks, including energy pricing, are
not supportive
 The business of industry is not energy efficiency
 Facility engineers typically do not become top managers
 Data on energy use of systems is very limited  difficult to
assess performance
 Lack of capacity to identify and evaluate performance
improvements  opportunities to become more energy efficient
are overlooked
 Disconnection between capital and operational budgets
 Investment constraints and lack of suitable financing
 Others …
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UNIDO Industrial Energy Efficiency Program
Focus Areas
 Energy management standards
 Systems optimization (steam systems, pumps systems,
compressed air, refrigeration, etc.)
Why?
• Relevant and applicable over the entire industrial sector, no
matter what the technological and production processes are
(IPCC 4th Assessment Report, IEA)
• Energy management prerequisite for continual improvement of
energy efficiency and performance in industry
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Energy Management & System Optimization
Energy management standard provides:
– A framework for understanding significant energy use
– Action Plans to continually improve energy performance
– Documentation to sustain energy performance improvements
System optimization provides:
– A method of assessing systems to identify energy performance
improvement opportunities
– Actions that can provide significant energy savings with limited
capital investments
– More reliable operations
Energy Management + Systems Optimization = Winning Strategy
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UNIDO Industrial Energy Efficiency Program
Additional Thematic Areas – Country and sector specific
 Promotion, demonstration, deployment and transfer of
advanced low-carbon process technologies
 Promotion, demonstration, deployment and transfer of
renewable energy technologies for industrial applications (solar
process heating and cooling, biomass, etc. )
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GEF4: UNIDO/IEE Projects
Example of country project
Project objective
To reduce GHG emissions through improved energy efficiency in industry and the
transformation of the market for industrial energy efficiency products and services.
Project components:
Policy support
Development and establishment of:
 National Energy Management Standard compatible with ISO 50001
 IEE Best-Practice Information, Dissemination and Recognition Program
 National IEE Monitoring and Benchmarking Program
 Fiscal incentives for IEE
 Others …
Capacity-building
 Energy Management (EM) Systems Expert Training
 System Optimization (SO) Expert Training (steam, pumps, compressed air, ..)
 Development and provision of tools to assist industry in developing and
implementing energy management and system optimization projects
 Training of industry managers and engineers
Pilot IEE projects
 Implementation of pilot projects in selected enterprises
Financing for IEE
 Development of IEE investment supporting schemes in partnership with
international as well as national financing institutions
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UNIDO/IEE Projects
Capacity building on Energy Management & System Optimization
Creating market opportunities for energy efficiency
Information, Awareness
and Promotion
Energy Management and
System Optimization Expert
Training programs
EM/EE training of
enterprise personnel
Development of a
Market for EM/EE
services to industry
Provision of EE technical
services to industry
Implementation of EE
projects in industry
Project duration
Post project
time
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GEF4: UNIDO/IEE Projects - Challenges
 Fine tuning of good and effective national institutional arrangements
and implementation model for development
 Co-financing represents significant challenge for governments and
partners in many countries
 Many countries have very limited capacity to prepare GEF funded
IEE projects. Significant IA assistance is required for project design
and preparation. UNIDO is continuing to examine how best to
provide services to country clients in a cost-efficient manner
 Capitalize the knowledge creation potential of the Portfolio and
ensure regional/ global sharing of information and learning
experiences
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GEF4: UNIDO IEE Projects – Lessons Learnt
 Leverage on existing local entities as much as possible
 Build strategic partnerships and maximize synergies with other
country projects and programs  comprehensive IEE projects very
often goes beyond core expertise of a single GEF IA
 Involve key stakeholders groups as early as possible and provide
details of envisaged implementation arrangements and
expectations in advance of project launch (inception workshops,
critical activities)
 Securing co-financing to meet GEF requirements almost always the
most difficult task in project preparation. Mobilization efforts should
be initiated already at the project identification stage rather than
postponed to project preparation: consider delays associated with
programming of funds among potential co-financiers.
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Thank you for your attention!
For more information
Dolf GIELEN
Chief
Industrial Energy Efficiency Unit
Energy and Climate Change Branch
UNIDO
Vienna International Centre
P.O. Box 300, A-1400 Vienna, Austria
Tel: 0043 1 26026 3811
E-mail: [email protected]
Georgios ANESTIS
Senior GEF Coordinator
Programme Development and
Technical Cooperation Division
UNIDO
Vienna International Centre
P.O. Box 300, A-1400 Vienna, Austria
Tel: 0043 1 26026 4565
E-mail: [email protected]
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