Benchmarking circulars vietnam method presentation at MOIT september 2019 2

PowerPoint præsentation 1 MOIT 13 September 2019 11 september 2019 MOIT (EESD) and The Danish Energy Agency Benchmarking of Industrial Energy Consumption 1 Purpose with meeting 11 september 2019 2 Pre.

PURPOSE WITH MEETING

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• Present and discuss benchmarking concept (method) (memo forwarded before meeting)

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

• 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

IV Preparing for the WS in Nov/Dec – should guidelines and procedures be conculcated?

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:

1 Determine the SEC-Target for the production site based on last years production mix and volume

2 Calculate the actual SEC-Value for the production site based on last years production volume and energy consumption

3 Clarify the deviation between SEC-Target and current SEC-Value

4 Prepare a plan (roadmap) for the coming 3-5 years for how to bring SEC-Value closer to SEC-Target

5 Report 1-4 to the DOIT using the templates in the circular.

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

ASSESSMENT OF TECHNOLOGY SPECIFIC IMPROVEMENTS – EXAMPLE 2

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…

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

• Diesel Oil Consumed: 28,400 l/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

• Coal Consumed: 2,577 ton/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

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).05/21/2024 26

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 DOIT-procedures will be discussed with MOIT, 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

WRAP-UP AND NEXT STEPS

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

• Setting date for next mission

• Overall content of the WS during next mission:

Training of the 3 DOIT-procedures

Presentation of the updated online-tool

Concultation of the benchmark-circulars: method, guidelines and procedures

• How can the guidelines and procedures be expanded to other sectors? (US-Aid – could

be invited for the upcoming workshop?)

Peter Kristensen Andreas Riis Christiansen

Contact