Benchmarking circulars vietnam method presentation at MOIT september 2019

PowerPoint præsentation 1 MOIT 13 September 2019 12 september 2019 MOIT (EESD) and The Danish Energy Agency Benchmarking of Industrial Energy Consumption 1 Purpose with meeting 12 september 2019 2 Pre.

PURPOSE WITH MEETING

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• Present and discuss guidelines for enterprises based on draft memos of:

1) Guideline for calculate/determine SEC-Target (forwarded before meeting)

2) Guideline for how to calculate current SEC-value (forwarded before meeting)

4) Guideline for the plan/roadmap for meeting the SEC-target in the coming 3-5 years (content, reporting (format), controlling etc.) (not forwarded)

• Agree on further steps regarding guidelines and procedures for benchmarking including:

I Input from two breweries and DOITs (2-4 partner DOITs)

II Finalization of guidelines

III Preparing DOIT-procedures for administering the benchmarking circulares

BENCHMARKING METHODOLOGY

SOME DEFINITIONS…

SEC-Target:

The target for a given sector and production type/volume stated in the relevant benchmarking circular

(Circular 19 for Beer and Beverage Industry)

If the production is a mix of products stated in the circular, the SEC-Target has to be calculated by the enterprise

OVERALL METHODOLOGY APPROACH /1

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• The methodology is based on a combination of a “explanatory” and a

“hard” approach.

• Obligations for the enterprises:

• Each year the enterprise have to:

mix and volume

production volume and energy consumption

closer to SEC-Target

OVERALL METHODOLOGY APPROACH /2

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• Obligations for the DOIT:

1 Control if the enterprise comply with the circular by controlling the yearly report from the enterprises (procedures are to be developed)

2 Be in dialogue with the enterprises to give inspiration for energy

measures and information on the obligations to comply with the benchmarking circulars (to be discussed)

3 Give cautions and fines if the enterprise do not meet the SEC-Target

or hand in a realistic roadmap (to be clarified in Decree 134)

• In general the methodology is developed for DEUs but can be used by non-DEUs as well Needed changes/other requirements/approaches for the non-DEUs have to be discussed

• 4 guidelines for enterprises:

1) Determine the SEC-Target

2) Calculate the current SEC-Value

3) Assess the deviation between SEC-Target and SEC-Value

4) How to prepare plan for meeting the SEC-Target

• Memo with results from testing the guidelines at two breweries

• Concept note on DOIT-procedures on how to administer the benchmarking circulars

• Input to MOIT to relevant changes of Circular 09 and Decree 134

GUIDELINE FOR ENTERPRISES

ON HOW TO DETERMINE THE

SEC-TARGET

DETERMINE SEC-TARGET

• A step-by-step guide for the enterprises DOITs will also use this guide

• Two ways to determine the SEC-Target:

• The production mix is stated directly in the circular:

• Based on production volume and year the SEC-Target can be looked up in the circular directly

• The production mix is not stated directly in the circular:

• The SEC-Target can not be looked up directly in the circular and needs to be calculated:

The calculation is a direct weight of the SEC-Target for the different product mix

• The SEC-Target have to be determined each year, because:

• The production volume can vary from year to year

• The circular have different SEC-Targets for periods (2016-2020 and 2020-2025).

ASSESSMENT OF TECHNOLOGY SPECIFIC IMPROVEMENTS – EXAMPLE 1

<20 306 286

ASSESSMENT OF TECHNOLOGY SPECIFIC IMPROVEMENTS – EXAMPLE 2

<20 306 286

GUIDELINE FOR ENTERPRISES

ON HOW TO CALCULATE THE

CURRENT SEC-VALUE

CALCULATE SEC-VALUE

• A step-by-step guide for the enterprises DOIT will also use this guideline

• The basic calculation is relatively simple:

• BUT…

A special weighting is applied to product volumes to obtain “equivalent production volume”

Only energy consumption in production areas should be included – if no or few meters and/or a mix

of energy sources the energy consumption must be calculated based on other data (procurement) and (qualified) assumptions.

If there is a mix of products the site equivalent product must be calculated based on the production mix and data from the circular – and again this might be based on (qualified) assumptions or real (production or sales) data if any Energy consumption must also be split according to the product mix.

• Important that any (qualified) assumptions are described/documented

•

• Brewery 1 Energy Consumption:

• Electricity Consumed: 15,300 MWh/y

SEC-VALUE – EXAMPLE 1

• SEC-Value:

• Comments:

• SEC significantly below target.

• Thermal consumption seems too low,

from experience, could be a unit error.

•

• Brewery 2 Energy Consumption:

• Electricity Consumed: 4,846 MWh/y

SEC-VALUE – EXAMPLE 2

• SEC-Value:

• Comments:

• Coal quality unknown, an intermediate

coal quality is used.

• SEC barely missing target.

•

GUIDELINE FOR ENTERPRISES

ON HOW TO ASSESS DEVIATIONS BETWEEN SEC- TARGET AND SEC-VALUE

ASSESS DEVIATION BETWEEN SEC-TARGET AND -VALUE

• A step-by-step guide for the enterprises including sector specific technology best practice DOIT will also use this guideline

• Step 1 is to calculate the deviation:

• The basic calculation is relatively simple:

• If SEC-deviation > 0 = the production is energy efficient

• If SEC-deviation < 0 = there might be a potential for improving the energy efficiency

• Step 2 is to compare the SEC-deviation from the current year with the SEC-deviation from last year

• Step 3 – only if SEC-deviation < 0 an analysis of the possible improvements by technologies should be made – continue to step 4

•

POTENTIAL FOR TECHNOLOGY SPECIFIC IMPROVEMENTS

• Step 6: The enterprise shall wrap-up conclusions on which deviations in energy efficiency that has been

observed area by area For the DEUs this can be done as a part of the energy audit.

ASSESSMENT OF TECHNOLOGY SPECIFIC IMPROVEMENTS – EXAMPLE 1

ASSESSMENT OF TECHNOLOGY SPECIFIC IMPROVEMENTS – EXAMPLE 2

TECHNOLOGY REVIEW – EXAMPLE REFRIGERATION

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• Refrigeration plant:

• Performance Indicator (PI): 1,00 = Best Current Practice

• Evaluate energy efficiency measures, and their influence on PI:

E.2 Evaporator size 0.03 – 0.15

E.3 No use of capacity slides 0.05 – 0.15

E.4 Compressor control system 0.05

E.5 Change of flat belts 0.05 – 0.10

E.6 Correct use of pressure levels 0.10 – 0.50

E.7 Production of cold water 0.40

E.8 Size of cooling towers 0.03 – 0.15

E.9 Floating condensation 0.10

E.10 Two stage compressors 0.10 – 0-20

E.13 Floating condensation 0.08

E.14 Second hand equipment 0.08

E.15 Users of refrigeration 0.03 – 0.25

GUIDELINE FOR ENTERPRISES

ON HOW TO PREPARE ANNUAL PLAN TO BRING SEC-VALUE CLOSER TO SEC-TARGET

PLAN TO BRING SEC-VALUE CLOSER TO SEC-TARGET

• A step-by-step guide for the enterprises DOIT will also use this guideline

• Based on the assessment of the potential for EE of the most significant/all technologies and utility

systems the enterprise must prepare a plan for how to meet (or get close to) the SEC-Target within the coming 3-5 years This plan will focus on each of the relevant technologies and utility systems within the production facility

• Method:

• Step 1: The enterprise must select a realistic and ambitious numbers of technologies and/or utility systems that will be improved within the next year and within the next 3-5 years

• Step 2: For each selected technology/utility system the enterprise must prepare a project implementation plan

• Step 3: Based on the project implementation plan the enterprise must determine the expected SEC for the coming year

• Step 4: Based on the project implementation plan the enterprise must determine the expected time before the

enterprise will meet the SEC-Target set in the sector specific circular (or calculated SEC-Target)

GUIDELINE FOR ENTERPRISES GENERAL REMARKS AND

DISCUSSION

GUIDELINES – GENERAL REMARKS AND DISCUSSION

• The guidelines are made for the enterprises but should also be used by DOITs – is this OK?

• 4 step-by-step guides are interconnected – it is suggested to merge the guidelines into one

guideline – is this OK?

• In general the calculations are relatively simple, but:

• Indata might be relative difficult for some enterprises to determine

• The circular gives a number of factors and conversion figures:

• Heating values, electricity scaling, equivalent product scaling, etc.

• It is suggested to make a supporting excel-tool to the enterprises This could also be used to support the DOIT

administration of the reported SEC-target/value

• Are the reporting templates (for DOIT MOIT and for enterprises DOIT (annexes to the circular))

sufficient or should changes/updates be proposed in order to support both the enterprises

(especially the non-DEUs) and the DOITs? Could perhaps also be included in a proposed excel tool

• Would it be beneficial to integrate project implementation plans with 1-year plans and 3-5-year

roadmaps as well as data in one combined platform / tool (in relation to circular 09).05/25/2024 27

SUGGESTED DOIT-PROCEDURE

OVERALL WORKFLOW

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The DOIT’s have to collect, control and report on the benchmarking obligation for enterprises in specific sectors These enterprise can be:

5.1 DOITs send letter to all

enterprises in specific industrial

sector asking for benchmark-data

5.2 DOIT make compliance check

on the benchmarking reports

5.3 DOIT make a quality control of

the benchmark reports

5.4 DOIT prepare and send

benchmark report to MOIT

PROCESS DIAGRAM

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Form in Circular 19

Within X week from receiving official dispatch from MOIT DOIT sends official dispatch to relevant authorities in the province to collect information (name, address, contact person (if any)) on all enterprises

in the province in the specific industrial sector

If DOIT keep a list from previous years special focus needs to be on new enterprises

This step in the procedures might be made before receiving the official dispatch from MOIT if possible

Within X week from receiving official dispatch from MOIT DOIT sends official dispatch to all enterprises in the specific industrial sector requiring them to submit the required data in accordance with the relevant benchmark circular

The official dispatch might be different for DEUs and non-DEUs

5.2 CHECK OF SUBMITTING

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The same approach towards DEUs and non-DEUs?

DOIT check if the benchmarking report have been submitted on time in accordance with the deadline [If the enterprise has submitted the benchmark report proceed to section 5.3]

If no benchmark report has been submitted DOIT sends a reminder or warning (depending on the

expected level of control) to the enterprise The warning includes a new deadline for submitting the

benchmark report one (or two) weeks ahead

The level of quality control needs to be discussed with MOIT and DOITs before the procedures on controlling and sanctions can be finalized More steps in the section might be relevant If it is decided to split the approach towards DEUs and non-DEUs this will also influence on the procedures

[If the benchmark report is submitted in due time after the first reminder/warning proceed to section 5.3]

In case benchmark report is still not submitted in due time with the new deadline or if the submitted benchmark report is not valid, a second reminder/warning including a new deadline can be send to the enterprise

When the escalation of penalties has been decided by MOIT and DOITs the relevant procedures will be changed accordingly

The level of quality control has to be discussed with MOIT and DOIT When the level is decided the procedures will be made accordingly

[If the quality of the submitted benchmark report fulfils all requirements then the quality control is completed Proceed to section 5.4]

In case of minor deficiencies, the DEU is contacted by email and asked to correct these within one week

In case of mayor deficiencies, the DEU is notified that the submitted benchmark report does not meet the standard and a new must be submitted within three weeks

[If the quality of the submitted benchmark report fulfils all requirements then the quality control is completed Proceed to section 5.4]

In case the benchmark report does not fulfil the requirements after the new deadline, DOIT will issue an enforcement notice on submission of a benchmark report within three weeks combined with a fine

The escalation of cautions and fines have to be discussed with MOIT and DOIT and the procedures will

be changed accordingly

5.2 REPORING TO MOIT

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Template in Circular 19Timing

Using the relevant template in the relevant benchmark circular (annex V in circular 19) DOIT prepares the yearly report on implementation of energy consumption norms to MOIT

DOIT sends the yearly report on implementation of energy consumption norms to MOIT in due time to meet the deadline

WRAP-UP AND NEXT STEPS

WRAP-UP AND NEXT STEPS

• IC will prepare a memo on the visits to the two breweries

• IC will finalize the draft guidelines based on feedback during the mission

• Concept note for Benchmark-procedure, two partner DOITs and DOIT of Hue and Hung Yen, IC will update the Procedure accordingly.

• LC will finalize the draft DOIT-procedure based on input during the mission

• Adjusted, final guideline and procedure to be disseminated to DOITs during autumn

Peter Kristensen Andreas Riis Christiansen

Contact