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TABLEOFCONTENTS
TableofContents ............................................................................................................... 1
ListofTables....................................................................................................................... 2
ListofFigures ..................................................................................................................... 2
I. Introduction................................................................................................................ 5
II. EnergyManagementPractices.................................................................................... 7
A.
EnergyPlanning
and
Management
Responsibility ........................................................7
B. EnergyandEquipmentProcurement ..........................................................................10
C. EnergyMeasurementsandProcessControl................................................................11
D. PerformanceReview....................................................................................................12
III. EnergyEfficiencyandProcessImprovements............................................................ 16
IV. ReadinesstoInvestinEnergyEfficiency.................................................................... 22
V. BarrierstoImprovedEnergyManagementandEnergyEfficiency ............................. 26
VI. SupportingEnergyEfficiencyinEnterprises .............................................................. 28
VII. Conclusions .............................................................................................................. 30
AppendixADatabaseof250Companies
AppendixBParticipatingCompanies
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Fig.9StaffAwarenessProgramsinPlacetoEncourageEnergyConservationandEfficiency.
..........................................................................................................................................10
Fig.10PercentageofCompaniesConsideringEnergyCostsoverLifetimewhenPurchasing
EnergyConsumingEquipment.........................................................................................11
Fig.11FrequencyofMeasuringandAnalyzingEnergyConsumptionbyRespondents.......11
Fig.12PercentageofCompaniesMeasuringEnergyConsumptionthroughDifferent
SectionsintheProductionProcess..................................................................................12
Fig.13 PercentageofCompaniesMeasuringtheEfficiencyofDifferentAuxiliarySystems.12
Fig.14PercentageofCompaniesthathaveEnergyPerformanceIndicators. .....................13
Fig.15EnergyPerformanceIndicatorsUsedbyCompanies................................................13
Fig.16PercentageofEnergyCoststoTotalProductionCosts.............................................14
Fig.17PercentageofCompaniesCarryingOutEnergyAudits.............................................14
Fig.18FrequencyoftheConductofEnergyAudits. ............................................................14
Fig.19
People
Carrying
Out
Energy
Audits. ..........................................................................15
Fig.20UsefulnessofEnergyAuditsRecommendations.......................................................15
Fig.21PercentageofRecommendedEnergyEfficiencyMeasuresthatwereImplemented.
.......................................................................................................................................... 15
Fig.22PercentageofCompaniesthatSetAnnualEnergyConsumptionReductionTargets.
..........................................................................................................................................16
Fig.23PercentageofCompaniesthatAchievedTargets. ....................................................17
Fig.24PotentialEnergyEfficiencyImprovementthatCompanyAchieved. ........................17
Fig.
25
Potential
Energy
Efficiency
Improvement
that
the
Company
can
Achieve. .............18
Fig.26SkillsandExperienceLevelsofCompanyStaffinImplementingEnergyEfficiency
Projects. ...........................................................................................................................18
Fig.27EnergyEfficiencyProject/MeasureforCompressedAirSystems.............................19
Fig.28EnergyEfficiencyProject/MeasureforPumpingandFanSystems. .........................19
Fig.29EnergyEfficiencyProject/MeasureforHeatDistribution.........................................20
Fig.30EnergyEfficiencyProject/MeasureforMotors/DriveSystems. ...............................20
Fig.31EnergyEfficiencyProject/MeasureforRefrigeration. ..............................................20
Fig.32EnergyEfficiencyProject/MeasureforHeatGeneration..........................................21
Fig.33EnergyEfficiencyProject/MeasureforHeatRecovery. ............................................21
Fig.34PaybackPeriodforEnergyEfficiencyProjects/Measures.........................................22
Fig.35MajorCapitalInvestmentorChangesinProductionFacilitiesovertheNext5Years.
..........................................................................................................................................23
Fig.36 MajorCapitalInvestmentorChangesinProductionFacilitiesbySector..................23
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Fig.37ExpectedPaybackPeriodforEnergyEfficiencyProjects/MeasuresPlannedforthe
Next2and5Years. ..........................................................................................................24
Fig.38StrategiesforFinancingEnergyEfficiencyProjects. .................................................25
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I. Introduction
ThepurposeofthisSurveyistocollectdataandinformationonenergyconsumption,
energy management practices and energy efficiency of enterprises in different industrial
sectors
and
to
compile
this
information
in
an
energy
efficiency
database.
Data
and
informationcollectedthroughtheSurveyareneededtodefinethecurrentenergyefficiency
and energy management baseline in the enterprises and will be used by UNIDO and the
Department of Energy (DOE) and Department of Trade and Industry (DTI) in the
development and formulation of a national project to promote and support improved
energyefficiencyinindustry.
Thereare68companies(27.2%)whorespondedfromthe250companiesinvitedto
the UNIDO survey. These companies have a total of 111 plants/facilities and 28,875
employees. ThesecompaniesrepresenttheindustrialsectorsasindicatedinTable1:
Table1
No.
of
Companies
that
Responded
to
the
UNIDO
Survey.
SectorsNo.of
Respondents
No.ofPlants/
Facilities
No.of
Employees
Ceramics 1 1 Nodata
Chemicals 16 36 2,964
Food&Beverage 11 22 10,859
Plastics 12 18 1,750
Pulp&Paper 3 4 470
Steel 7 11 774
Sugar 9 10 4,206
Others
9
9
7,852
Total 68 111 28,875
Manycompanies(72.1%)prefernottoanswerthesurveyquestionrelatedto2008
annualrevenues.
On the use of national or international management systems standards, 47
companies (69.1%) have adopted these management standards. As shown in Figure 1, a
high percentage of companies from all the sectors except the sugar sector are currently
makinguseofmanagementsystemstandards. Figure2showsthedifferentmanagement
systemstandards
used/adopted
by
the
companies.
Despite the existence of management standards, about 69% of the companies
surveyedarestillconsideringusingnewmanagementsystemstandards. Thisistrueforall
sectorsasshowninFigure3.
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0%
20%
40%
60%
80%
100%
120%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCEN
TAGE
Yes
No
Noresponse
Fig.1PercentageofCompaniesMakingUseofNationalandInternationalManagement
Standards.
ISO9001
47%
ISO14001
20%
ISO22000
4%
HACCP
14%
OHSAS18001
15%
Fig.2ManagementStandardsUsedbytheIndustries.
0%
20%
40%
60%
80%
100%
120%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Yes
No
Noresponse
Fig.3PercentageofCompaniesConsideringUsingNewManagementSystemStandards.
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II. EnergyManagementPractices
In this section, companies were asked about their current energy planning and
management responsibilities, energy and equipment procurement, energy measurements
andprocesscontrolandperformancereview.
A. EnergyPlanningandManagementResponsibility
This section includes questions on whether companies have established their own
energy policies, the main drivers of energy consumption reduction, the key personnel
involvedonenergymanagementanddecidingofinvestmentsandwhetherstaffawareness
programsareinplace.
Based on the survey, 52.9% of the respondents have developed their own energy
policies. Figure 4 shows the responses per sector. Majority of the chemicals, pulp and
paperand
sugar
companies
have
crafted
their
energy
policies
while
many
of
the
companies
under the plastics and steel companies have no identified energy policies. Out of the
respondentshavingenergypolicies,86.1%havesetenergyefficiencyorperformancegoals.
0%
20%
40%
60%
80%
100%
120%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PE
RCENTAGE
Yes
No
Noresponse
Fig.4CompanieswithEnergyPolicies.
On the importance of energy consumption reduction in relationship to all other
issues
top
management
is
considering,
67.6%
of
the
companies
said
that
they
consider
energyreductionasveryimportantwhile20.6%saidtheyarethemostimportantissueas
showninFigure5.
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0%
20%
40%
60%
80%
100%
120%
Ceramics Chemicals Food&
Beverage
Pl as ti cs Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Yes
No
Noresponse
Fig.6PercentageofCompanieswithaPersonAssignedtheResponsibilityforEnergy
ManagementandEfficiency.
Onthenumberofhoursallottedtoenergymanagementandefficiency,about37%
ofthecompaniessaidthatthenumberofhoursallottedarefrom14hourswhile19%and
14%allot59hoursand1015hours,respectively,asshowninFigure7.
37%
0%
7%
2%
0%
16%
5%
14%
19%
0% 5% 10% 15% 20% 25% 30% 35% 40%
14hrs
59hrs
1015hrs
1620hrs
2125
hrs
2630hrs
3139hrs
40hrsandover
Dontknow
PERCENTAGE
Fig.7No.ofHoursAllotedtoEnergyManagementandEfficiency.
Inmakinginvestmentdecisions,theDirectorGeneralorManagingDirectorofabout
48%ofthecompaniesdecidesontheinvestmentsforenergyefficiencyprojectswhileabout
33% of the companies have their investments decided upon by the Technical Director or
ManagerasshowninFigure8.
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Director
Gen/Managing
Director
48%
Finance
Dir/Mgr/Dept
13%
Technical
Dir/Mgr/Dept
33%
ChiefEnergy
Manager
6%
Fig.8PersonsMakingInvestmentDecisionsinCompanies.
Manyoftherespondentshavestaffawarenessprogramsuchasmonitoringenergy
use, placing signs/stickers, giving information to staff on energy conservation, setting
targetsforenergyuse,andrecognitionofenergyreductioninitiativesasshowninFigure9.
6%
66%
68%
80%
40%
49%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Nostaffawareness
programsinplace
Recognition ofenergy
reductioninitiatives
Settingtargetsfor
energyuse
Givinginformation to
staff
Placingsigns/stickers
Monitorenergyuse&
cost
PERCENTAGE
Fig.9StaffAwarenessProgramsinPlacetoEncourageEnergyConservationandEfficiency.
B. EnergyandEquipmentProcurement
Inthissection,companieswereaskediftheenergycostsovertheoperatinglifetime
is taken into account in the purchasing decisionmaking process. Majority (79.4%) of the
companies takes into account energy costs over lifetime in purchasing energy consuming
equipment. Figure10showstheresponseforeachsector.
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0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
P la st ic s P ul p&
Paper
Steel Sugar Others
PER
CENTAGE
Yes
No
Noresponse
Fig.10PercentageofCompaniesConsideringEnergyCostsoverLifetimewhenPurchasing
EnergyConsumingEquipment.
C. Energy
Measurements
and
Process
Control
In thissection,companieswereaskedaboutmeasurementandanalysesofenergy
consumption of the plant, different sections andauxiliary systems. Almost all companies
take energy measurements and do analysis of their energy consumption. However, they
differ inthe frequencyof takingmeasurements. Mostof therespondents (64%)measure
andanalyzeenergyconsumptionasshowninFigure11.
36%
18%
6%
3%
64%
22%
0% 10% 20% 30% 40% 50% 60% 70%
Daily
Weekly
Monthly
Annually
Fromtimetotime
Donotmeasure
PERCENTAGE
Fig.11FrequencyofMeasuringandAnalyzingEnergyConsumptionbyRespondents.
Outof thesurveyed companies,76.5% measuresenergyconsumption through the
different sections of the production process while 58.8 % measures the efficiency of
different auxiliary energy systems such as motor systems, pumping systems, steam and
processheatsystemsandother. Figure12showstheresponsesofthedifferentsectors in
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measuringthroughdifferentsectionsoftheproductionprocesswhileFigure13showsthe
responsesofcompaniesmeasuringtheefficienciesofauxiliaryequipment.
0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Yes
No
Noresponse
Fig.12PercentageofCompaniesMeasuringEnergyConsumptionthroughDifferent
Sectionsin
the
Production
Process.
0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Yes
No
Noresponse
Fig.13 PercentageofCompaniesMeasuringtheEfficiencyofDifferentAuxiliarySystems.
D. PerformanceReview
Inthissection,companieswereaskedaboutenergyperformanceindicators,energy
costsvsproductioncostsandenergyaudits.
More than half of the respondents (56%) reported that they have energy
performance indicators(EPI). Figure14showsdetailsofresponsespersector. Thereare
two(2)mostcommonindicatorsbeingusedbythecompaniesasindicatedinFigure15and
theyaretheenergyconsumptionperunitproductionandenergycostperunitproduction.
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0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Yes
No
Noresponse
Fig.14PercentageofCompaniesthathaveEnergyPerformanceIndicators.
6%
46%
7%
41%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
No response
Energy
consumption/PhP
value
Energycost/unit
prodn
Energy
consumption/unit
prodn
PERCENTAGE
Fig.15EnergyPerformanceIndicatorsUsedbyCompanies.
For those respondents not using EPI, the companies were asked to indicate the
percentageof energy costs to totalproductioncosts in the last3 years. Figure16 shows
that about 33% of the respondents have energy costs that are about 15% of the total
productioncost. Forsomecompanies,energycostsmaybeashighasover31%.
Energy performance indicators may be set through the conduct of energy audits.
Basedonthesurvey,onlyabout48%oftherespondentscarryoutenergyaudits. Figure17
showsthat
almost
all
sectors
(55%)
except
the
chemical
sector
conduct
energy
audits.
Out
ofthecompaniescarryingoutaudits,about70%doauditseveryyearorlessthanayearas
showninFigure18.
Forcompanieswhohaveconductedenergyaudits,58%aredonebycompanystaff,
6%byexternalproviderand36%companystaffwithexternalproviderasshown inFigure
19.
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0%
20%
40%
60%
80%
100%
05% 610% 1120% 2130% over31%
PERCENTAGE
2006
2007
2008
Fig.16PercentageofEnergyCoststoTotalProductionCosts.
0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Yes
No
Noresponse
Fig.17
Percentage
of
Companies
Carrying
Out
Energy
Audits.
70%
9%
12%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Everyyearorless
Every2yrs
Every3yrs
Every5yrsormore
PERCENTAGE
Fig.18FrequencyoftheConductofEnergyAudits.
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Companystaff
58%External
service
provider
6%
Companystaff
&external
36%
Fig.19PeopleCarryingOutEnergyAudits.
Whenaskedabouttheusefulnessoftheenergyauditrecommendations,70%ofthe
respondents indicatedthatmostof the recommendationswereusefulasshown inFigure
20. In Figure 21, about 46% of the respondents have indicated that most of the energy
efficiencymeasuresrecommendedintheauditwasimplemented.
21%
70%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80%
All
Most
Some
PERCENTAGE
Fig.20UsefulnessofEnergyAuditsRecommendations.
18.0%
36.0%
46.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
All
Most
Some
PERCENTAGE
Fig.21PercentageofRecommendedEnergyEfficiencyMeasuresthatwereImplemented.
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Out of the 33 companies that implemented the recommendations stated in the
energyaudit,88.6%showedsignificantsavings.
III. EnergyEfficiencyandProcessImprovements
In this section, companies were asked whether energy consumption reduction
targetshavebeensetandachievedandwhethertherearesettargetsfor2009. Thesurvey
furtheraskedtheenergyefficiencyprojects/measuresimplementedbythecompanyforthe
last2years.
Basedonthesurvey,about47%oftherespondentsindicatedthattheircompanyset
annualenergyconsumptionreductiontargetswhile49%saidthattheydonothaveannual
reductiontargets. Figure22showstheresponsespersector.
0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
YesNo
Noresponse
Fig.22
Percentage
of
Companies
that
Set
Annual
Energy
Consumption
Reduction
Targets.
As shown in Figure 22, a high percentage (more than 50%) of companies in the
chemicalsandplasticssectordonotsetannualenergyconsumptionreductiontargets.
For companies who have set annual energy consumption targets for 2008, about
41%of thecompaniesachieved their reduction targetsandhaveadjusted their reduction
targetsfor2009whileabout22%didnotachievetheirtargetsasshowninFigure23. There
wereabout9%companieswhohavesetannualenergyreductiontargets in2008buthave
notprovided informationonwhether theywere achievedornot. Whenaskedabout the
potentialtotalenergyefficiencyimprovementsthatcanbeachievedoverthenext5years,
about 34% said that they can achieve 610% as shown in Figure 24. The total potential
energy efficiency improvement per sector is shown in Figure 25. The chemicals sector
indicatedthatenergyefficiency improvementscanbeashighasmorethan21%whilethe
food and beverage, steel and sugar sectors believe that they can still improve energy
efficiencybyupto20%.
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6%
22%
41%
22%
9%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Noresponse
Didnot
monitor/tracktarget
Didnot achieve
target
Startedin2009
Achievedtarget
PERCENTAGE
Fig.23PercentageofCompaniesthatAchievedTargets.
24%
7%
4%
19%
34%
12%
0% 5% 10% 15% 20% 25% 30% 35% 40%
05%
610%
1115%
1621%
>21%
Idontknow
PERCENTAGE
Fig.24PotentialEnergyEfficiencyImprovementthatCompanyAchieved.
Ontheskillsandexperiencelevelsofcompanystaffimplementingenergyefficiency
projects,ahighpercentageofthecompaniesratedthemselvesonthe2(lowmedium)and
3(mediumhigh)levelsforthedifferentskillsasshownonFigure26. Otherskillsmentioned
were energy audits with low to medium level of skill and attending training seminars
organizedbytheEnergyEfficiencyPractitionersAssociationofthePhilippines(ENPAP),Inc.
About 993 energy efficiency projects/measures have been identified by the
companiestohavebeen implementedforthelasttwoyears. Thetoprankingprojectsare
tabulatedonTable3.
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0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
P last ics Pu lp&Paper Steel Sugar Others
0-5% 6-10%
11-15% 16-21%
> 21% Dont know
No response
Fig.25PotentialEnergyEfficiencyImprovementthattheCompanycanAchieve.
2.13
2.65
2.63
2.49
1.00 2.00 3.00 4.00
Knowledgeofbest
practice
Energymanagement
practices
Estimatingenergy
savings
Assessingenergy
savingspotential
Fig.26SkillsandExperienceLevelsofCompanyStaffinImplementingEnergyEfficiency
Projects.
Table3TopRankedEnergyEfficiencyProjects/MeasuresImplemented.
Rank EEProjects/Measures Percentage(%)
1 Compressedairsystems 10.7%
2
Pumping
and
fan
systems
10.4%
3 Heatdistribution 10.3%
4 Motors/drivesystems 9.3%
5 Heatgeneration 7.0%
6 Refrigeration 6.7%
7 Heatrecovery 5.9%
8 Electricaldistribution 5.7%
9 Energyefficientlighting 4.5%
10 Introductionofenergymonitoring 3.3%
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CompressedAirSystems
Themostcommonenergyefficiencyprojects forcompressedairsystemsbasedon
thesurvey includea) leakdetectionandmanagement,b)matchingthe loadwithdemand
(pressure and flow), c) replacing compressors to more efficient units, and d) installing
variablespeedcontrolsasshowninFigure27. Majorityoftheseprojectswereimplemented
inthe
sugar,
chemicals
and
plastics
sectors.
Leakdetection&
management
35%
Matchload
w/demand
23%
Networkedcontrols
7%
Variablespeed
control
12%
Replace
compressors
13%
AddStorage
10%
Fig.27EnergyEfficiencyProject/MeasureforCompressedAirSystems.
PumpingandFansSystems
Likeinthecompressedairsystems,manyofthecompanies installedvariablespeed
controls and matched the load with demand in their pumping and fan systems, most
notably in the chemicals, plastics and sugar sector as shown in Figure 28. Many of the
chemicalcompanieshavecorrectedflowobstructionsandleaks(valve,dampers,etc.)while
manyofthesugarmillshavereplacedinefficientpumps.
Matchload
withdemand
22%
Variablespeed
control
26%
Correctflow
obstructions
andleaks
19%
Replacepumps
17%
Upgrade
coolingtowers
16%
Fig.28EnergyEfficiencyProject/MeasureforPumpingandFanSystems.
HeatDistribution
The most common energy efficiency project/measure implemented on heat
distribution isaddingpipe insulationasshown inFigure29. Thishappenedmostly in the
chemicalsandfoodandbeveragesectors.
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Steamtrap
maintenance
32%
Pipes
insulation
37%
Cleaning
or
replacementof
heat
exchangers
31%
Fig.29EnergyEfficiencyProject/MeasureforHeatDistribution.
Motors/Drivessystems
Most of the companies in the food and beverage, plastics, chemicals and sugar
sectorshaveinstalledadjustable/variablespeeddrives(47%)asshowninFigure30.
Refrigeration
Figure31 shows thatabout44%of thecompanieshavemostlydone maintenance
jobs by cleaning heat transfer surfaces of refrigeration systems. Many of these projects
havebeenimplementedinthesugar,foodandbeverage,chemicalsandplasticssectors.
Ener gy efficient
motors
25%
Ad jus tab le /
variable speed
drives
47%
Replace/rew ind
policy
28%
Fig.30EnergyEfficiencyProject/MeasureforMotors/DriveSystems.
Replace
compressors
25%
Replace
condensers
18%
Cleaningheat
transfer
surfaces
44%
Variablespeed
control
13%
Fig.31EnergyEfficiencyProject/MeasureforRefrigeration.
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HeatGeneration
About 80% of the companies have implemented maintenance and fuel control
projects as opposed to equipment replacement as shown in Figure 32. These measures
includeboilerfeedwatertreatment,boilertuneupandmeasureandcontrolofcombustion
fuelwhichwereimplementedmostlyinthefoodandbeverage,chemicalsandsugarsector.
Boilerfeedin
watertreatment
32%
Backpressure
turbines
4%
Measure&
controlof
combustionfuel
21%
Boiler
replacement
16%
Boilertuneup
27%
Fig.32
Energy
Efficiency
Project/Measure
for
Heat
Generation.
ElectricalDistribution
Two (2)commonprojectsonelectricaldistribution involvepower factorcorrection
and replacement of transformers. About 68% of the respondents from the food and
beverage,sugar,chemicalsandplasticssectorhaveimplementedpowerfactorcorrection.
HeatRecovery
Figure
33
shows
the
distribution
of
the
energy
efficiency
projects/measures
implemented under heat recovery. About 45% of the companies under the food and
beverage, sugar and chemicals sector have considered condensate recovery followed by
preheatingcombustionair(20%).
Preheatprocess
heatingloads
15%
InternalCombustion
enginesw/heat
recovery
10%
Absorptioncooling
7%
Combinedcycle
combustion
turbines
3%
Preheat
combustionair
20%
Condensate
recovery
45%
Fig.33EnergyEfficiencyProject/MeasureforHeatRecovery.
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EnergyEfficientLighting
About58%oftheenergyefficientlightingsystemsprojectshavebeeninstalledinthe
chemicals,plasticsandfoodandbeveragesectors.
IntroductionofEnergyMonitoring
Theintroductionofenergymonitoringdevicesorsoftwarehasgainedimportancein
the food and beverage, sugar and chemical sectors representing about 57% of the total
respondentsthatinstalledthismeasure.
Asalastiteminthissection,therespondentswereaskedtobrieflydescribetwo(2)
mostsignificantprojectsimplementedandtoindicatethecostandthepaybackperiod. The
projects implemented have costs ranging from PhP 10,000.00 for lighting and air
conditioningprojectinachemicalcompanytoPhP25millionforreplacinginefficientchiller
packageinafoodcompany. Thepaybackperiodsfortheseprojectswereinvestigatedand
about41%ofthecompanieshaveindicatedthattheirprojectshavepaybackperiodsof12
yearsfollowed
by
27%
with
payback
period
of
less
than
one
year
as
shown
in
Figure
34..
27%
7%
0%
7%
8%
10%
41%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
5yrs
Not calculated
Infonotavailable
PERCENTAGE
Fig.34PaybackPeriodforEnergyEfficiencyProjects/Measures.
IV. ReadinesstoInvestinEnergyEfficiency
In
this
section,
the
companies
were
asked
future
plans
on
energy
efficiency
particularlymajorcapital investmentinthenextfiveyears includingproductionexpansion,
closure and rationalization of plant, process plant replacement/modernisation, auxiliary
equipmentreplacement/modernisation,andothers. Asshown inFigure35,about38%of
thecompaniesareplanningtoreplace/modernizeauxiliaryequipment. Respondentsfrom
theceramics,pulpandpaper,steelandsugarsectorsasshowninFigure36indicatedthese
investmentplans.
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5%
38%
29%
29%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Closure&rationalisationof
plant
Productionexpansion
additionalplant
Processplant
replacement/modernization
Auxiliaryequipment
replacement/modernization
PERCENTAGE
Fig.35MajorCapitalInvestmentorChangesinProductionFacilitiesovertheNext5Years.
0%
20%
40%
60%
80%
100%
Ceramics Chemicals Food&
Beverage
Plastics Pulp&
Paper
Steel Sugar Others
PERCENTAGE
Production expansion
Closure
and
rationalization
Process
plant
modernization
Auxiliaryeqpt
replacement
Fig.36 MajorCapitalInvestmentorChangesinProductionFacilitiesbySector.
The companies were asked if they are planning or considering to invest in energy
efficiencyprojectsoverthenext2yearsand5years. Table4showsthetop5projectsthat
have been considered and planned for investments in the next 2 and 5 years with the
corresponding percentages of projects either planned or considered. It can be observed
thatthereexistsahighpercentageofplannedenergyefficiencyprojectsforthenext2years
and5years.
The respondents were again asked to briefly describe two (2) most significant
projectsthatarebeingconsideredforinvestmentsandtoindicatethecostandthepayback
period. TheprojectsimplementedhavecostsrangingfromPhP30,000.00forrehabilitation
of HVAC systems in a chemical company to PhP 25 million for optimizing chemical
production. Theexpectedpaybackperiodsfortheseprojectswere investigatedandabout
21%ofthecompanieshave indicatedthattheirprojectsmayhavepaybackperiodsof12
yearsfollowedby16%withpaybackperiodof35yearsasshowninFigure37.
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Table4PlannedorConsideredInvestmentsonEnergyEfficiencyProjectsfortheNext2
and5Years.
Next2Years Next5Years
Top5ProjectsPlannedor
ConsideredTop5Projects
Plannedor
Considered
1.
Energyefficientlighting 69%Planned31%Considered
1.
Pumpingand
fan
systems43%
Planned
57%Considered
2. Improvedprocess
control
76%Planned
24%Considered2.
Refrigeration76%Planned
24%Considered
3.
Motors/drivesystems74%Planned
26%Considered
3. Renewableenergy
projects
67%Planned
33%Considered
4. Heatrecovery60%Planned
40%Considered4. Electricaldistribution
55%Planned
45%Considered
5.
Compressedairsystems77%Planned
23%Considered5.
UpgradeHVACcontrols57%Planned
43%Considered
13%
16%
3%
13%
12%
29%
14%
0% 5% 10% 15% 20% 25% 30% 35%
5yrs
Notcalculated
Infonotavailable
PERCENTAGE
Fig.37ExpectedPaybackPeriodforEnergyEfficiencyProjects/MeasuresPlannedforthe
Next2and5Years.
The companies were then asked if they are planning or considering investing in
energymanagementimprovementactionoverthenext2yearsand5years. Table5shows
howtherespondentsrankedtheenergymanagementimprovementmeasuresinthenext2
and5yearswiththecorrespondingpercentagesofprojectseitherplannedorconsidered. It
canbe
observed
that
there
exists
ahigh
percentage
of
planned
energy
efficiency
projects
for the next 2 years while for the next 5 years, there is a high percentage of projects
consideredforinvestmentascomparedtoplanned.
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Table5PlannedorConsideredInvestmentsonEnergyManagementImprovementforthe
Next2and5Years.
Next2Years Next5Years
TopProjects(Ranked)Plannedor
ConsideredTopProjects(Ranked)
Plannedor
Considered
1.
Developmentof
energy
efficiencyaction
plan/programme
78%Planned
22%Considered
1.
Introductionof
metering
forindividualproduction
units/sections
36%Planned
64%Considered
2. Stafftrainingonrational
useofenergy
58%Planned
42%Considered
2. Introductionofenergy
managementsystem
33%Planned
67%Considered
3.
Stafftrainingonenergy
systemoptimization
61%Planned
39%Considered
3. Introductionofregular
inhouseenergy
audits/diagnosis
50%Planned
50%Considered
4.
Introductionofmetering
forindividualproduction
units/sections
54%Planned
46%Considered
4.
Developmentofenergy
efficiencyaction
plan/programme
20%Planned
80%Considered
5.
Introductionofenergy
monitoring
75%Planned
25%Considered
5.
Stafftrainingonrational
useof
energy
60%Planned
40%Considered
6.
Introductionofregular
inhouseenergy
audits/diagnosis
70%Planned
30%Considered
6. Stafftrainingonenergy
systemoptimization100%Planned
7. Introductionofenergy
managementsystem
60%Planned
40%Considered
7. Introductionofenergy
monitoring
50%Planned
50%Considered
8.
Introductionofenergy
performancetargets
84%Planned
16%Considered
8.
Introductionofenergy
performancetargets
50%Planned
50%Considered
The last question under this section pertains to the strategies adopted by the
industry
in
financing
their
energy
efficiency
projects.
Figure
38
shows
that
about
63%
of
the
companiesrelyontheuseoftheirowncapitalresources.
63%
9%
10%
6%
13%
0% 10% 20% 30% 40% 50% 60% 70%
Useofowncapital
resources
LoanCapital
Leasing
GovSubsidies
EnergyServices
Company
PERCENTAGE
Fig.38StrategiesforFinancingEnergyEfficiencyProjects.
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V. BarrierstoImprovedEnergyManagementandEnergy
Efficiency
Thereareseveralbarriersthatexistintheindustrieswhichinhibitthepromotionof
energymanagementandenergyefficiency. Thesurveyaimedtodeterminethesignificant
factorslimiting
the
company
to
invest
in
more
human
and
financial
resources
to
improve
energy efficiency. Table 6 shows the significant factors ranked accordingly. The most
significantfactorinlimitingcompaniesininvestinginmorehumanandfinancialresourcesin
improved energy management and efficiency is that companies have other resources
investmentpriorities.
Table6SignificantFactorsLimitingCompaniesinInvestingMoreHumanandFinancial
ResourcesinImprovedEnergyManagementandEfficiency
Factors Weight
1.
Have
other
resources
investment
priorities
2.70
2.
Energyefficiencyprojectshavelongpaybackperiod 2.56
3. Equipmentisoldbutstilloperatingeffectively
replacementisnotcosteffective2.49
4.
Thereisinsufficienttechnicalexpertiseinthecompanyto
identify,developandimplementenergyefficiencyprojects2.43
5. Existingproductionprocesscontrolandenergyuse
measurementsystemsareinadequate2.43
6.
Thereisinsufficientinformationoncostsandbenefitsof
energyefficiencyprojects2.42
7.
Themarketdoesnotplaceanyaddedvalueonenergy
efficientlyperforming
companies
2.42
8. Existingpoliciesareinadequatetopromoteandsupport
energyefficiencyinindustry2.38
9.
Lackofexternaldriverssuchasmandatoryenergy
efficiencytargetsorCO2emissiontargets2.38
10.
Thereisinsufficientexpertiseinthecompanytoimplement
energymanagement2.36
11.
Insufficientcapital 2.31
12.Energyefficiencyisnotpromotedbyequipment/plant/
servicesuppliers,soaredifficulttosource2.15
13.Pooravailabilityofcommercialcreditandloans 2.10
14.
Companyis
already
energy
efficient
2.10
15.
Totalenergycostsaresmallorareasmallpercentageof
productioncosts2.06
16.
Fearthatenergyefficiencyprojectsmaycauseproduction
interruptions1.88
17.
Topmanagementisnotcommittedtoenergyefficiency 1.62
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While Table 6 shows the general ranking of factors limiting in investing in energy
managementandefficiency,Table7showshowthedifferentsectorsrankedthesefactors.
Forexample,themostsignificant limitingfactor inthechemicalssector isthatthemarket
doesnotplaceanyaddedvalueonenergyefficientlyperformingcompanieswhilethefood
sectorsmostsignificantlimitingfactoristhatenergyefficiencyprojectshavelongpayback
period.
Table7SignificantFactorsLimitingCompaniesinInvestingMoreHumanandFinancial
ResourcesinImprovedEnergyManagementandEfficiencybySectors.
FACTOR ChemicalsFood&
BeveragePlastics
Pulp&
PaperSteel Sugar Ceramics
1. Totalenergycostsaresmallorareasmall
percentageofproductioncosts2.17 2.29 1.44 1.33 1.80 3.00 1.00
2.
Topmanagementisnotcommittedto
energyefficiency1.77 1.86 1.56 1.00 1.50 2.00 1.00
3. Thereisinsufficientexpertiseinthe
companytoimplementenergy
management
2.23 2.38 2.56 2.00 2.33 2.63 2.00
4. Thereisinsufficienttechnicalexpertisein
thecompanytoidentify,developand
implementenergyefficiencyprojects
2.38 2.63 2.33 2.00 2.67 2.63 2.00
5.
Existingproductionprocesscontroland
energyusemeasurementsystemsare
inadequate
2.38 2.75 2.33 1.67 2.33 2.78 2.00
6. Fearthatenergyefficiencyprojectsmay
causeproductioninterruptions1.77 1.57 2.33 1.33 1.67 2.50 1.00
7. Companyisalreadyenergyefficient 1.77 1.71 1.88 2.67 1.50 2.89 3.00
8.
Equipmentisoldbutstilloperating
effectivelyreplacementisnotcost
effective
2.46 2.13 2.13 2.67 2.14 3.63 2.00
9. Haveotherresourcesinvestment
priorities2.42 3.13 2.89 2.33 2.00 3.63 1.00
10.
Insufficientcapital 1.92 2.00 2.44 2.00 2.83 3.29 3.00
11.
Thereis
insufficient
information
on
costs
andbenefitsofenergyefficiencyprojects2.38 2.43 2.44 1.67 2.17 3.25 1.00
12.
Energyefficiencyisnotpromotedby
equipment/plant/servicesuppliers,so
aredifficulttosource
2.46 1.86 1.78 1.33 2.67 2.50 3.00
13. Themarketdoesnotplaceanyadded
valueonenergyefficientlyperforming
companies
2.77 2.43 2.44 1.67 2.20 2.25 4.00
14. Energyefficiencyprojectshavelong
paybackperiod2.23 3.14 2.56 2.50 2.50 2.63 3.00
15.
Pooravailabilityofcommercialcreditand
loans1.54 1.86 2.22 2.00 2.33 3.29 4.00
16.
Existingpoliciesareinadequateto
promoteandsupportenergyefficiencyin
industry
1.92 2.75 2.56 1.50 2.67 3.13 2.00
17.
Lackofexternaldriverssuchas
mandatoryenergyefficiencytargetsor
CO2emissiontargets
2.46 2.38 2.33 1.50 2.83 2.75 2.00
Aside from the factors limiting the companies in investing on improved energy
managementandenergyefficiency,therespondentswerealsoaskedtheadditionalfactors
thatwould limit the companies in implementing and adopting thenew ISO 50001energy
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management system standards. Table8shows the significant factors ranked accordingly.
ThemostsignificantfactorinlimitingcompaniesinimplementingandadoptingISO50001is
thelackofunderstandingofwhatanenergymanagementsystemstandardisallabout. The
differentsectorsrankedthesefactors
Table8
Significant
Factors
Limiting
Companies
in
Implementing
and
Adopting
ISO
50001
EnergyManagementSystemStandards
Factors Weight
1.
Lackofunderstandingofwhatanenergymanagement
systemstandardisabout2.73
2. Themarketdoesnotplaceanyaddedvalueonenergy
efficientlyperformingcompanies2.62
3. Lackofhumanresourcestoimplementthestandard 2.61
4.
Lackofunderstandingofthecostsandbenefitsof
implementinganenergymanagementsystemstandard2.56
5.
Lackof
financial
resources
to
implement
the
standard
2.51
6. Lackofcrediblecertificationofstandardcompliance 2.47
Table9SignificantFactorsLimitingCompaniesinImplementingandAdoptingISO50001
bySectors.
FACTOR ChemicalsFood&
BeveragePlastics
Pulp&
PaperSteel Sugar Ceramics
1. Lackofunderstandingofwhatanenergy
managementsystemstandardisabout2.29 3.00 2.90 2.67 2.67 3.22 2.00
2. Lackofunderstandingofthecostsand
benefitsof
implementing
an
energy
managementsystemstandard2.00
2.90
3.10
2.00
2.50
2.75
2.00
3. Lackofhumanresourcestoimplement
thestandard2.36 2.60 2.78 2.00 2.60 3.00 1.00
4. Lackoffinancialresourcestoimplement
thestandard2.07 2.33 2.82 2.67 3.00 3.25 3.00
5. Themarketdoesnotplaceanyadded
valueonenergyefficientlyperforming
companies
2.57 2.60 2.82 2.00 2.83 2.75 4.00
6. Lackofcrediblecertificationofstandard
compliance2.21 2.40 2.73 2.00 2.67 2.88 4.00
VI. SupportingEnergy
Efficiency
in
Enterprises
In this section, the companies were asked about the support services and the
support policy measures and programmes that would be of significant value to them in
decidingtoinvestinimprovedenergymanagementandenergyefficiencyprojects.
Table10showsthesupportservices,rankedaccordingly,thatwouldbeofsignificant
valuetothecompanies indecidingto invest inenergymanagementandenergyefficiency
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projects. It was found that the most significant support service is technical training of
company personnel followed closely by the availability of detailed energy efficiency
implementationmanualsfordifferentenergysystems.
Table10SupportServicesthatareofSignificantValuetotheCompaniesinDecidingto
Investin
Energy
Management
and
Energy
Efficiency
Projects.
SupportServices Weight
1. Technicaltrainingofcompanypersonnel 3.36
2. Availabilityofdetailedenergyefficiencyimplementation
manualsfordifferentenergysystems3.35
3.
Informationonenergyefficiencytechnologiesand
practices3.28
4. Financialandtechnicalappraisalofenergyefficiency
projects3.27
5. Energyauditandidentificationofenergysavingprojects 3.25
6.
Energymanagementsupportandtraining 3.25
7.
Availabilityofenergyefficiencyandenergymanagement
implementationguidance3.13
8.
Awarenessprogramsonenergymanagementandenergy
efficiencyfortopmanagement3.10
9.
Projectimplementationmanagementandsupport 3.03
10. Informationonequipmentvendorsandindustrialenergy
efficiency(IEE)servicessuppliers2.97
11.Availabilityofenergybenchmarks 2.90
12.Financialtrainingofcompanypersonnel 2.72
13.
Assistanceinpackagingprojectsforloanapplications 2.48
In terms of support policy measures and programmes, the respondents ranked
financialincentiveslinkedtoenergyefficiencytargets/projectsasthemostsignificantpolicy
measurefollowedbytheestablishmentofindustrialsectorsenergyefficiencynetworksfor
exchangeofbestpracticesasshowninTable11. Underthefinancialincentives,taxcredits,
tax rebates and accelerated depreciation of capital/equipment investments were also
rankedbythecompaniestobeofhighsignificance.
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Table11SupportPolicyMeasuresandProgrammesthatareofSignificantValuetothe
CompaniesinDecidingtoInvestinEnergyManagementandEnergyEfficiencyProjects
SupportPolicyMeasuresandProgrammes Weight
1.
Fiscalincentiveslinkedtoenergyefficiencytargets/
projects3.23
Taxcredits 3.34
Taxrebates 3.33
Accelerateddepreciationofcapital/equipment
investments3.06
2. Establishmentofindustrialsectorsenergyefficiency
networksforexchangeofbestpractices3.14
3. Investmentsubsidies 3.03
Partiallyfundedenergyaudits 2.98
Loanguarantees 2.87
4.
Developmentofenergybenchmarksforindustrialsectororsubsector
3.02
5. Technologyandenergyefficiencyfairs/expositions 2.91
6. PublicEnergyEfficiencyRecognition/AwardSchemes 2.75
7.
Negotiatedenergyreductiontargetsagreements 2.69
8. EstablishmentofanEnergyManagerCertificationprogram 2.67
VII. Conclusions
Basedontheresultsofthesurveyof68companies,thefollowingcanbeconcluded:
Theparticipatingcompaniesarenotnewtomanagementsystemstandards
as majority of them have adopted either national or international
management standards. They are open to the idea of having other
managementstandardsparticularlyifitwilladdressenergymanagementand
energyefficiency.
Many
of
the
participating
companies
have
energy
policies
in
place
and
they
havesetenergyefficiencyorperformancegoalsasaresultofestablishingan
energy policy. Persons responsible for energy management and energy
efficiencyinthecompanieswerealsogivenimportance.
A high percentage of the participating companies consider energy
consumption reduction as very important. Production costs control and
reduction, corporate image/social responsibility and environment
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AppendixA
DatabaseofIndustries
(250companies)
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AppendixB
DatabaseofIndustries
(68companies)
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