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Energy Efficiency and Industry: How to Reduce the Energy Bill?
Wednesday, October 1st from 9:00am - 12:00pm
Energy and Environmental Constraints Facing Road Transportation
Wednesday, September 10th 2008 from 9:00am -12:00pm
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Energy Efficiency and Industry: How to Reduce the Energy Bill?
Wednesday, October 1st from 9:00am - 12:00pm October 1st, 2008 Conference
Energy Efficiency in the Industry: How to Reduce its Energy Bill?
Coordinator: Alain Chardon
Energy Saving Plans
Speech by Bénédicte Dolidzé of the RATP (Paris Transport Authority), Member of the General Delegation in Innovation and Sustainable Development
The following is the first observation: Since 2004, the company has stabilized its energy consumption and increased its production. Even if buses, streetcars and subways represent one of the least polluting means of transportation, the RATP (Paris Transport Authority) is a big consumer of energy (214.4 ktoe « kiloton of oil equivalent » for 2007 ) and this is not only because of the bus or electricity draw. The buildings and lighting are also implicated. We must therefore address the problems in their diversity and the objective is clear: 5% reduction of energy consumption in 2010 and 10% in 2020.
To do this, four operational plans of action were projected as early as 2006. They are divided between the bus, the railroad, railway stations, and real estate. These actions will result in gaining 12,000 toe (ton of oil equivalent) of energy by 2010 and 21,000 tons of CO2. Thus, restoring trains and recovering braking energy. An eco-challenge will be launched promoting the buses economic conduct. Hybrid buses will be tested in 2009 and the controversial question of bio-fuels will be raised. LEDs will be used to light up the stations, which will very frequently be equipped with electronic ballasts. The occupation rate of tertiary buildings will be optimized.
Here are, among others, the measures that propose adopting the RATP (Paris Transport Authority) in order to obtain a substantial decrease of the global consumption of energy by 2020.
Aware of the complexity of this matter, the company hopes to promote work on all sections to reduce its energy consumption as a whole.
Speech by Joel Mercelat, Vice President, and Technical Director of the Legrand Group
The Climact Project is conceived in France and abroad. It is organized by taking actions with the Bureau of Real Estate Group Studies then, by immediately exchanging with the sites. The objective of these steps is to optimize energy consumption while preserving performance and integrating the consumption component at the time of choosing new methods.
The Kaizen approach is used on the spot and it has for a motto « fast and rough, not slow and elegant ». The experience was first tried on the Saint Junien site, a factory of 200 people in the Limousin where the Kaizen team spent a week. Once the waste of energy existent on the site was detected, they helped in the production of the « Practical Guide on Energy Conservation ». A guide, which will be the starting point of sharing the experience with other sites.
The results in one week are as follows: 6% gain on electricity, 4.5% on the consumption of gas.
The method first consists of listing the site’s activities and the energy that it requires, then, taking inventory all the waste. Next, we must begin to perform metering on the temperature, lighting, and leakage of compressed air and define the profile of the site’s consumption. Finally, after the analysis of waste activities, solutions are proposed. The results will permit the creation of the Practical Guide.
We must predominantly alter the different methods of operation in the facilities and this will happen in large part by training the employees. All this change in policy needs to be extremely solid.
During a second visit, the ideas of the Climact Project must be passed on to the company’s clientele. In other words, they must be able to propose solutions. In matters of lighting, for example, Lighting Management Mosaic can achieve a 35% energy savings. Industrial and service industry solutions are also proposed: Source reversal, Harmonics filtering, reactive energy Compensation …
So rather than a draft that is too ambitious and unworkable, The Legrand Company chooses to adopt a simple and pragmatic method.
Lecture by Frédéric Petit, Director of the Siemens’ Sectoral Branches
The Industry must now face various constraints. The increase in the price of energy reduces the investment capacity of the manufacturers who must also put in place economic energy strategies to respect the standards of Grenelle de l’ Environnement. Metering and management are foundations for healthy energy consumption.
In industry, 75% of energy consumption is linked to electrical training. However, by using high-energy yield engines, the energy savings are considerable. Furthermore, if one includes the life cycle cost and not only the price in the parameters that make up the choice when purchasing an engine, the high yield engine becomes very interesting. In addition, it is very profitable when it allows savings through a greatly reduced energy bill.
The practice of the energy audit also appears as an effective way of reducing and controlling its energy costs by creating clarity in consumption and resulting in a greater awareness and maturity.
The phases of the audit are as follows: Orientation, analysis, planning, execution, and perpetuation. The ROI (return on investment), focus of the audit and of the optimization of industrial equipment detects three levels of intervention. First, we use simple and immediate measures with limited expense, then simple measures of modernization. These first two levels are conceived in the short run. In the end, the third level enumerates the complex methods, which requires an investment. The energy audit will allow for savings that permit investments, which will finally be a source of gain for the company.
Biomass is an example of a solution specific to the paper industry. It consists of the reusability of different types of rejects resulting in their transformation into fuel oil. The waste generates a part of the industry’s energy cost.
In terms of renewable energy, wind turbines increase in power, and Siemens participates in the construction of a park in France containing 11 wind turbines. Another innovative company is organizing for March 2009 a gas power station with a cycle combined of 530 mw.
Questions Asked Concerning These Lectures
On the subject of the proposed solution in the paper industry, Mr. Petit has made it clear that it was a process, which did not require an investment but used already existing production systems.
The question of government aid has been raised. The Grenelle de l’ Environnement has scarcely mentioned the burden that the engines consumption has on the industrial energy bill. According to Mr. Petit, not everything must come from the government. Some grants were awarded to users of high yield engines. The point to emphasize here is profitability that will provoke the use of engines of this type.
The concerns raised by the use of high yield engines or other technologies such as frequency converters are not so unfounded. As Mr. Petit specifies, the manufacturers have no interest in proposing a product that is not reliable. The most important thing is to have confidence.
The Kaisen approach proposed by the Legrand Company displays very positive results after a week, but what will happen in the long run. We must redo Kaisen weeks regularly to prevent erosion but the approach remains profoundly effective: When added up the small actions become sustainable.
French rates are regulated but are there countries going even further? According to Mr. Mercelat, rather than wait, we must be interested in all electrical fields not mentioned. The RATP (Paris Transport Authority) wishes to intervene to educate the population. Everyone agrees on the merits of this approach: The population is not solicited and informed enough. However, as Mr. Petit emphasizes, the public domain in France, which initiates a movement, stays more closed than in some Scandinavian countries.
As for the question, does there exist a market that will emerge, the answer is clearly positive. This one has great potential; we must educate and train the people, advise the investors and propose solutions.
Changing Suppliers
Lecture by Paul Ravetto, Paris Bar Advocate, Expert on Energy Law
On the retail market for electricity: 97% of the sites are on a regulated rate, 0.01% are on the TarTAM rate, 1.3% of the sites are supplied by their old suppliers and 1.8% by the alternative suppliers.
On the non-residential retail market, activity is stable. In other words, the transition between the old suppliers and the alternative suppliers has not been important during these last two years.
The law guarantees consumers the right of way between the regulated market sector and that of the free market. The major advantage of passage from one to the other is the applicable price.
On the wholesale market, the amounts remain restricted. The exchanges are made by mutual agreement. French price follows the German Price.
Suppliers are rarely present on all customer segments.
According to the customer segments, the right to reverse the transition from one sector to another varies. The industrial consumers will suffer the irreversibility principle while residential consumers can move. Concerning gas, all choices are final.
Since the law of December 7th, 2006, the TarTAM rate is open to all. Since August 2008, the recipients of this rate will benefit until July 1st, 2010.
Questions on the Subject of This Lecture
It happens that suppliers decline some customers supplied by TarTAM. The amount of the CSPE (French Public Service of Electricity) contribution having reached a ceiling, the suppliers are afraid of losing out. According to Mr. Ravetto it is the calculation of this ceiling (which will not be adjusted to market price) that causes a debate. It is a question of adjusting it to guarantee full compensation, limiting the risks.
The opening of the gas market raises questions. What are the advantages of a change of offer? The competitiveness of the price not only motivates a big part of the changes in offers but the types of contracts and the different clauses can promote interest.
Energy Efficiency in the Industry: How to Reduce its Energy Bill?
Coordinator: Alain Chardon
Energy Saving Plans
Speech by Bénédicte Dolidzé of the RATP (Paris Transport Authority), Member of the General Delegation in Innovation and Sustainable Development
The following is the first observation: Since 2004, the company has stabilized its energy consumption and increased its production. Even if buses, streetcars and subways represent one of the least polluting means of transportation, the RATP (Paris Transport Authority) is a big consumer of energy (214.4 ktoe « kiloton of oil equivalent » for 2007 ) and this is not only because of the bus or electricity draw. The buildings and lighting are also implicated. We must therefore address the problems in their diversity and the objective is clear: 5% reduction of energy consumption in 2010 and 10% in 2020.
To do this, four operational plans of action were projected as early as 2006. They are divided between the bus, the railroad, railway stations, and real estate. These actions will result in gaining 12,000 toe (ton of oil equivalent) of energy by 2010 and 21,000 tons of CO2. Thus, restoring trains and recovering braking energy. An eco-challenge will be launched promoting the buses economic conduct. Hybrid buses will be tested in 2009 and the controversial question of bio-fuels will be raised. LEDs will be used to light up the stations, which will very frequently be equipped with electronic ballasts. The occupation rate of tertiary buildings will be optimized.
Here are, among others, the measures that propose adopting the RATP (Paris Transport Authority) in order to obtain a substantial decrease of the global consumption of energy by 2020.
Aware of the complexity of this matter, the company hopes to promote work on all sections to reduce its energy consumption as a whole.
Speech by Joel Mercelat, Vice President, and Technical Director of the Legrand Group
The Climact Project is conceived in France and abroad. It is organized by taking actions with the Bureau of Real Estate Group Studies then, by immediately exchanging with the sites. The objective of these steps is to optimize energy consumption while preserving performance and integrating the consumption component at the time of choosing new methods.
The Kaizen approach is used on the spot and it has for a motto « fast and rough, not slow and elegant ». The experience was first tried on the Saint Junien site, a factory of 200 people in the Limousin where the Kaizen team spent a week. Once the waste of energy existent on the site was detected, they helped in the production of the « Practical Guide on Energy Conservation ». A guide, which will be the starting point of sharing the experience with other sites.
The results in one week are as follows: 6% gain on electricity, 4.5% on the consumption of gas.
The method first consists of listing the site’s activities and the energy that it requires, then, taking inventory all the waste. Next, we must begin to perform metering on the temperature, lighting, and leakage of compressed air and define the profile of the site’s consumption. Finally, after the analysis of waste activities, solutions are proposed. The results will permit the creation of the Practical Guide.
We must predominantly alter the different methods of operation in the facilities and this will happen in large part by training the employees. All this change in policy needs to be extremely solid.
During a second visit, the ideas of the Climact Project must be passed on to the company’s clientele. In other words, they must be able to propose solutions. In matters of lighting, for example, Lighting Management Mosaic can achieve a 35% energy savings. Industrial and service industry solutions are also proposed: Source reversal, Harmonics filtering, reactive energy Compensation …
So rather than a draft that is too ambitious and unworkable, The Legrand Company chooses to adopt a simple and pragmatic method.
Lecture by Frédéric Petit, Director of the Siemens’ Sectoral Branches
The Industry must now face various constraints. The increase in the price of energy reduces the investment capacity of the manufacturers who must also put in place economic energy strategies to respect the standards of Grenelle de l’ Environnement. Metering and management are foundations for healthy energy consumption.
In industry, 75% of energy consumption is linked to electrical training. However, by using high-energy yield engines, the energy savings are considerable. Furthermore, if one includes the life cycle cost and not only the price in the parameters that make up the choice when purchasing an engine, the high yield engine becomes very interesting. In addition, it is very profitable when it allows savings through a greatly reduced energy bill.
The practice of the energy audit also appears as an effective way of reducing and controlling its energy costs by creating clarity in consumption and resulting in a greater awareness and maturity.
The phases of the audit are as follows: Orientation, analysis, planning, execution, and perpetuation. The ROI (return on investment), focus of the audit and of the optimization of industrial equipment detects three levels of intervention. First, we use simple and immediate measures with limited expense, then simple measures of modernization. These first two levels are conceived in the short run. In the end, the third level enumerates the complex methods, which requires an investment. The energy audit will allow for savings that permit investments, which will finally be a source of gain for the company.
Biomass is an example of a solution specific to the paper industry. It consists of the reusability of different types of rejects resulting in their transformation into fuel oil. The waste generates a part of the industry’s energy cost.
In terms of renewable energy, wind turbines increase in power, and Siemens participates in the construction of a park in France containing 11 wind turbines. Another innovative company is organizing for March 2009 a gas power station with a cycle combined of 530 mw.
Questions Asked Concerning These Lectures
On the subject of the proposed solution in the paper industry, Mr. Petit has made it clear that it was a process, which did not require an investment but used already existing production systems.
The question of government aid has been raised. The Grenelle de l’ Environnement has scarcely mentioned the burden that the engines consumption has on the industrial energy bill. According to Mr. Petit, not everything must come from the government. Some grants were awarded to users of high yield engines. The point to emphasize here is profitability that will provoke the use of engines of this type.
The concerns raised by the use of high yield engines or other technologies such as frequency converters are not so unfounded. As Mr. Petit specifies, the manufacturers have no interest in proposing a product that is not reliable. The most important thing is to have confidence.
The Kaisen approach proposed by the Legrand Company displays very positive results after a week, but what will happen in the long run. We must redo Kaisen weeks regularly to prevent erosion but the approach remains profoundly effective: When added up the small actions become sustainable.
French rates are regulated but are there countries going even further? According to Mr. Mercelat, rather than wait, we must be interested in all electrical fields not mentioned. The RATP (Paris Transport Authority) wishes to intervene to educate the population. Everyone agrees on the merits of this approach: The population is not solicited and informed enough. However, as Mr. Petit emphasizes, the public domain in France, which initiates a movement, stays more closed than in some Scandinavian countries.
As for the question, does there exist a market that will emerge, the answer is clearly positive. This one has great potential; we must educate and train the people, advise the investors and propose solutions.
Changing Suppliers
Lecture by Paul Ravetto, Paris Bar Advocate, Expert on Energy Law
On the retail market for electricity: 97% of the sites are on a regulated rate, 0.01% are on the TarTAM rate, 1.3% of the sites are supplied by their old suppliers and 1.8% by the alternative suppliers.
On the non-residential retail market, activity is stable. In other words, the transition between the old suppliers and the alternative suppliers has not been important during these last two years.
The law guarantees consumers the right of way between the regulated market sector and that of the free market. The major advantage of passage from one to the other is the applicable price.
On the wholesale market, the amounts remain restricted. The exchanges are made by mutual agreement. French price follows the German Price.
Suppliers are rarely present on all customer segments.
According to the customer segments, the right to reverse the transition from one sector to another varies. The industrial consumers will suffer the irreversibility principle while residential consumers can move. Concerning gas, all choices are final.
Since the law of December 7th, 2006, the TarTAM rate is open to all. Since August 2008, the recipients of this rate will benefit until July 1st, 2010.
Questions on the Subject of This Lecture
It happens that suppliers decline some customers supplied by TarTAM. The amount of the CSPE (French Public Service of Electricity) contribution having reached a ceiling, the suppliers are afraid of losing out. According to Mr. Ravetto it is the calculation of this ceiling (which will not be adjusted to market price) that causes a debate. It is a question of adjusting it to guarantee full compensation, limiting the risks.
The opening of the gas market raises questions. What are the advantages of a change of offer? The competitiveness of the price not only motivates a big part of the changes in offers but the types of contracts and the different clauses can promote interest.