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The Non-Energy Benefits of Industrial Energy Efficiency: Investments and Measures
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, Faculty of Science & Engineering.
2016 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Improved industrial energy efficiency is viewed as an important means in the reduction of CO2 emissions and climate change mitigation. Various energy efficiency measures for improving energy efficiency exists, but even evaluated as cost-effective, there seems to be a difference between the energy efficiency measures that theoretically could be undertaken and which measures that actually are realised. On the other hand, industrial energy efficiency measures might yield extra effects, denoted as non-energy benefits, beyond the actual energy savings or energy cost savings.

Based on interviews and a questionnaire, results showed that the Swedish industrial firms studied had observed various non-energy benefits. However, few of the non-energy benefits observed were translated into monetary values and included in investment calculations. Results indicated that this non-inclusion could be explained by lack on information on how to measure and monetise the benefits, but even if not translated into monetary values, some of the non-energy benefits were sometimes used qualitatively in investment decisions. The utilisation of the benefits seemed to depend on the type and the level of quantifiability among the perceived benefits.

This thesis has also explored energy efficiency measures and non-energy benefits for a specific industrial energy-using process – compressed air. A literature review on energy efficiency in relation to compressed air systems revealed a large variation in which measures that could be undertaken to improve energy efficiency. However, few publications applied a comprehensive perspective including the entire compressed air system. Few non-energy benefits of specific energy efficiency measures for compressed air systems were identified, but the study provided insights into how non-energy benefits should be studied. This thesis suggests that energy efficiency and non-energy benefits in compressed air systems should be studied on specific measure level to enable the observation of their effects. However, the studies also addressed the importance of having a systems perspective; the whole system should be regarded to understand the effects of energy efficiency measures and related non-energy benefits.

Place, publisher, year, edition, pages
Linköping: Linköpings universitet , 2016. , 64 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1760
Keyword [en]
Industrial energy efficiency, energy efficiency measures, energy efficiency investments, non-energy benefits, compressed air
National Category
Energy Systems
Identifiers
URN: urn:nbn:se:liu:diva-131831DOI: 10.3384/lic.diva-131831ISBN: 9789176856727 (Print)OAI: oai:DiVA.org:liu-131831DiVA: diva2:1033843
Presentation
2016-10-28, ACAS, A-huset, Campus Valla, Linköpings universitet, Linköping, 12:29 (Swedish)
Opponent
Supervisors
Funder
Swedish Energy Agency
Available from: 2016-11-09 Created: 2016-10-10 Last updated: 2016-11-09Bibliographically approved
List of papers
1. Including non-energy benefits in investment calculations in industry - empirical findings from Sweden
Open this publication in new window or tab >>Including non-energy benefits in investment calculations in industry - empirical findings from Sweden
2014 (English)In: ECEEE Industrial Summer Study, 2014: Retool for a competitive and sustainable industry, 2014, 711-719 p.Conference paper (Refereed)
Abstract [en]

The threat of increased global warming accentuates the need for reducing anthropogenic emissions of GHG (Green House Gases). Improved energy efficiency in industry represents one of the most important means of reducing this threat. Furthermore, improved energy efficiency and cutting energy costs may be key factors for individual enterprises’ long term survival and success because of increased environmental legislation and rise of energy prices. Despite the fact that extensive potentials for improved energy efficiency exists in industry, a large part remains unexploited explained by the existence of various barriers to energy efficiency. The research on barriers is well-developed and regards the non-investment of cost-effective technical measures that improve energy efficiency. In these studies, the actual investment decision is the analysing variable. However, if one extends the system boundary, there are indications that not only the actual reduction of energy cost but also other potential benefits should be taken into account in energy-efficiency investments. Including such factors, named non-energy benefits (NEBs), in the investment calculation mean the investment may have a considerably shorter pay-back period. The aim of this paper is to study if NEBs are considered and measured in energy-efficiency related investments in Swedish industry, and to study factors inhibiting the inclusion of NEBs in investment calculations. Results of this study indicate that NEBs seems to exist in the Swedish industrial companies participating in this study, but only few of the mentioned NEBs were included in investment calculations, explained by among other factors, the hidden cost of monetizing the NEB.

Series
, Industrial Summer Study proceedings, ISSN 2001-7987 (online), 2001-7979 (print) ; 2014
Keyword
non-energy benefits (NEBs), investment decision-making, barriers, energy efficiency investments, multiple-energy benefits
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-110580 (URN)9789198048247 (print) (ISBN)9789198048254 (online) (ISBN)
Conference
ECEEE 2014, Industrial Summer Study: Retool for a competitive and sustainable industry, June 2-5, 2014, Arnhem, The Netherlands
Projects
Välgrundade energirelaterade investeringsbeslut - hur, och på vilka grunder kan energi bli en strategisk fråga för svensk industri
Funder
Swedish Energy Agency
Note

Finansierat av Energimyndigheten och Institutionen för ekonomisk och industriell utveckling, Linköpings universitet. 

Available from: 2014-09-15 Created: 2014-09-15 Last updated: 2016-11-09Bibliographically approved
2. How do firms consider non-energy benefits? Empirical findings on energy-efficiency investments in Swedish industry
Open this publication in new window or tab >>How do firms consider non-energy benefits? Empirical findings on energy-efficiency investments in Swedish industry
2016 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, Vol. 113, 472-482 p.Article in journal (Refereed) Published
Abstract [en]

When industrial firms invest in energy efficiency, the effect may go beyond energy cost savings and produce additional non-energy benefits as well. However, there is a lack of knowledge regarding experiences in non-energy benefits and the extent to which these are acknowledged by industry. This study attempts to explore firms perspectives on non-energy benefits of industrial energy-efficiency investments and if and how non-energy benefits are considered in the investment process. Moreover, this study also explores investment motives and critical aspects of adopting energy-efficiency investments. Based on a questionnaire and interviews with representatives of Swedish industrial firms, the results indicate that energy efficiency seems to be an important issue for the firms, but profitability and payoff appear to be the most important factors for adopting an investment, implying that it is often difficult to meet the payoff requirements with energy cost savings alone. In the meantime, various non-energy benefits are observed, but there seems to be a lack of knowledge of how these should be quantified and monetised. To facilitate such an assessment of non-energy benefits and to include them in the investment analysis, a measurement framework is provided. It is concluded that including non-energy benefits in the investment analysis can contribute to a framing of energy-efficiency investments that can meet the firms requirements for profitability assessment, which can further enhance opportunities for energy-efficiency investments in industry. Thus, the study contributes with new insights into the energy-efficiency investment process and the extent to which non-energy benefits are considered, along with the methods for measuring them.

Place, publisher, year, edition, pages
ELSEVIER SCI LTD, 2016
Keyword
Energy efficiency; Investments; Non-energy benefits; Explorative study; Investment decisions
National Category
Mechanical Engineering Economics and Business
Identifiers
urn:nbn:se:liu:diva-126262 (URN)10.1016/j.jclepro.2015.11.070 (DOI)000370993200046 ()
Note

Funding Agencies|Swedish Energy Agency; Department of Management and Engineering at Linkoping University

Available from: 2016-03-21 Created: 2016-03-21 Last updated: 2016-10-10

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