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Non-Energy Benefits of Industrial Energy Efficiency: Roles and Potentials
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, Faculty of Science & Engineering.
2019 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Climate and environmental targets place significant requirements on energy efficiency and improved industrial energy efficiency is viewed as one of the most important means of reducing CO2 emissions and mitigating climate change. Even though efforts have been undertaken to improve energy efficiency there is still the potential for further improvements to be made. The potential is a result of that proposed energy efficiency improvement measures are not implemented, even if judged as cost-effective.

Besides improving energy efficiency, the implementation of energy efficiency improvements in industrial firms can generate additional beneficial effects: so-called non-energy benefits. Examples of non-energy benefits are: improved productivity, lower operation and maintenance costs, a better work environment, decreased waste and fewer external effects, such as lower emissions. This thesis has investigated the roles and potential of non-energy benefits in decisions on energy efficiency improvements from three perspectives: energy efficiency measures, energy efficiency investments and energy management activities.

The results of the studies presented in this thesis demonstrated that different types of non-energy benefits were observed in various areas within industrial firms due to the energy efficiency measures, energy efficiency investments and energy management activities they have implemented. Studying energy efficiency measures and investments revealed that implementing one single energy efficiency measure or investment can generate several non-energy benefits. The studies also uncovered a relationship between the non-energy benefits, i.e. chain reactions of primary, secondary and further effects, in which one benefit can generate other types of benefits. Consequently, some non-energy benefits were observed immediately after the implementation of energy efficiency measures, direct effects, while others were perceived later on, indirect effects. Furthermore, extending the perspective by including energy management activities led to the recognition of novel non-energy benefits.

The results of this thesis demonstrated that non-energy benefits were seldom acknowledged in decisions on energy efficiency improvements. However, the non-energy benefits’ character, diversity and relations among them enabled opportunities for the non-energy benefits to be included in decisions on energy efficiency in various ways. For instance, based on the results of these studies, monetised non-energy benefits could be included in investment calculations contributing to cost-effectiveness, while certain effects that are difficult to measure and quantify could be utilised qualitatively in investment evaluations as extra arguments, or, if important to the firm, as objectives for making the investment. Hence, depending on their type, non-energy benefits seemed to have different roles in decisions on industrial energy efficiency improvements.

This thesis contributed with a comprehensive approach by investigating energy efficiency improvements and the related non-energy benefits through three perspectives. By combining the results from each perspective, the view on industrial firms’ decisions on energy efficiency improvements was widened. In this thesis it is concluded that the potential of non-energy benefits in decision-making on industrial energy efficiency improvements lies in the utilisation of all types of non-energy benefits and to consider all the roles that non-energy benefits may have. By utilising knowledge on non-energy benefits along with their roles observed in relation to previous implementations of energy efficiency improvements, non-energy benefits can impact decisions on new implementations.

Abstract [sv]

Effektivisering av industrins energianvändning ses som ett av de viktigaste redskapen för att minska koldioxidutsläppen i syfte att mildra klimatpåverkan och nå uppsatta klimat- och miljömål. Konkurrens och resursbrist driver industrin till att effektivisera och kopplingen mellan energi och tillverkningsprocesser i företagen betyder att energieffektivisering är av vikt då den även bidrar till effektivisering generellt inom företaget. Trots detta genomförs inte alla föreslagna åtgärder även om de är kostnadseffektiva, vilket gör att det finns en potential till ytterligare industriell energieffektivisering.

Förutom energibesparing och energikostnadsbesparing kan implementering av energieffektiviserande åtgärder även ge ytterligare positiva effekter för företaget, så kallade mervärden (eng. non-energy benefits), exempelvis i form av ökad produktivitet, ökad livslängd för maskiner och utrustning, förbättrad arbetsmiljö samt minskad mängd utsläpp och avfall. Denna avhandling har studerat mervärdens roller och potential i beslut kring energieffektiviserande åtgärder och investeringar samt energiledningsaktiviteter.

Resultaten visade att implementering av energieffektiviserande åtgärder och investeringar samt energiledningsaktiviteter gav flera olika typer av mervärden observerade på olika nivåer och inom olika delar av verksamheten i industriföretag. Genom att studera mervärden ur flera perspektiv synliggjordes nya typer av mervärden samt att implementering av en enstaka energieffektiviserande åtgärd kan generera ett flertal mervärden av olika typ. Vidare sågs även samband mellan olika mervärden, dvs att ett mervärde gav upphov till ett flertal andra mervärden.

Resultaten av dessa studier visade att användningen av mervärden vid beslut kring energieffektivisering begränsas av att många mervärden är svåra att mäta och kvantifiera. Trots att många mervärden var svåra att värdera i pengar och inkludera i investeringskalkyler, visade resultaten att mervärden ibland användes kvalitativt i investeringsunderlag som extra argument. Om mervärdet var av stor vikt kunde det till och med anses vara del utav syftet med en energieffektiviserande investering. Detta visade på mervärdens olika roller beroende på deras karaktär samt hur viktiga de ansågs vara för företaget.

Denna avhandling har studerat energieffektiviseringar och relaterade mervärden ur tre perspektiv. Genom att kombinera resultaten från varje perspektiv erhölls en bredare syn på beslut kring energieffektivisering. Resultaten i denna avhandling visade att mervärden kan bidra på olika sätt i beslut kring energieffektiviseringar beroende på deras olika roller samt att mervärdens potential i sådana beslut beror på om och hur mervärdens olika roller beaktas och används. Genom att använda kunskap om mervärden och deras olika roller som observerats i samband med tidigare energieffektiviserande implementeringar, kan mervärden bidra till att påverka beslut vid planering av nya energieffektiviserande implementeringar.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2019. , p. 114
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1980
National Category
Energy Systems
Identifiers
URN: urn:nbn:se:liu:diva-156297DOI: 10.3384/diss.diva-156297ISBN: 9789176851067 (print)OAI: oai:DiVA.org:liu-156297DiVA, id: diva2:1304248
Public defence
2019-05-29, ACAS, Hus A, Campus Valla, Linköping, 10:15 (Swedish)
Opponent
Supervisors
Available from: 2019-04-25 Created: 2019-04-11 Last updated: 2019-04-30Bibliographically 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, p. 711-719Conference paper, Published 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 2001-7979, E-ISSN 2001-7987 ; 2014
Keywords
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 (ISBN)9789198048254 (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: 2019-04-11Bibliographically 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, p. 472-482Article 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
Keywords
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: 2019-04-11
3. Linking energy efficiency measures in industrial compressed air systems with non-energy benefits - A review
Open this publication in new window or tab >>Linking energy efficiency measures in industrial compressed air systems with non-energy benefits - A review
2018 (English)In: Renewable & sustainable energy reviews, ISSN 1364-0321, E-ISSN 1879-0690, Vol. 89, p. 72-87Article, review/survey (Refereed) Published
Abstract [en]

Compressed air is widely used in supporting industrial manufacturing processes due to its cleanness, practicality and ease of use. However, the efficiency of compressed air systems is often very low. Typically, for compressed air-driven tools only 10-15% of the energy input is utilised as useful work. Despite these recognised inefficiencies, and even though energy efficiency measures for compressed air systems normally offer several opportunities for energy savings and energy cost savings, generally, less attention has been given to the energy use and energy costs incurred in compressed air systems. Industrial energy efficiency measures might also yield additional effects, beyond the energy savings, which are denoted as non-energy benefits. This study reviews the existing base of scientific knowledge on energy efficiency in compressed air systems combined with the perspective of non-energy benefits. Even though some measures were mentioned more frequent than others, the results revealed significant variation in which measures could be undertaken to improve energy efficiency in compressed air systems. However, few publications employ a comprehensive approach by examining the entire compressed air system. Furthermore, few publications have addressed the possible additional benefits to be gained from energy efficiency measures in compressed air systems. This study provides a compilation of the various energy efficiency measures reported in the reviewed scientific literature that can be undertaken in order to improve energy efficiency in compressed air systems. It also provides a comprehensive take on the measures, including a systems perspective, by categorising them in respect to where in the compressed air system they can be undertaken. This paper suggests that energy efficiency measures in compressed air systems, and related non-energy benefits, should be studied on a specific measure level to fully understand and acknowledge their effects on the energy use of a compressed air system and possible additional effects, i.e. non-energy benefits.

Place, publisher, year, edition, pages
PERGAMON-ELSEVIER SCIENCE LTD, 2018
Keywords
Energy efficiency; Compressed air systems; Energy efficiency measures; Non-energy benefits; Industry; Systematic literature review
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-147901 (URN)10.1016/j.rser.2018.02.018 (DOI)000430853300008 ()
Available from: 2018-05-23 Created: 2018-05-23 Last updated: 2019-04-11
4. Implementation of energy efficiency measures in compressed air systems: barriers, drivers and non-energy benefits
Open this publication in new window or tab >>Implementation of energy efficiency measures in compressed air systems: barriers, drivers and non-energy benefits
2018 (English)In: Energy Efficiency, ISSN 1570-646X, E-ISSN 1570-6478, Vol. 11, no 5, p. 1281-1302Article in journal (Refereed) Published
Abstract [en]

Increased global competition and resource scarcity drives industrial companies to cut costs. Energy can be a significant component of such cuts, particularly for energy-intensive companies. Improving energy efficiency in industry is complex, as it pertains to various energy-using processes that are heavily intertwined. One such process is the compressed air system (CAS), which is used in most industrial companies worldwide. Since energy efficiency improvement measures for various types of energy-using processes differ, technology-specific measures might encounter different barriers to and drivers for energy efficiency. The same applies to the non-energy benefits (NEBs) related to energy efficiency improvement measures; since measures vary between various energy-using processes, the perceived NEBs might be different as well. The aim of this paper is to study the barriers to, drivers for and NEBs of CAS energy efficiency improvement measures from the perspectives of three actors. Carried out as an interview study combined with a questionnaire, the paper merges the perspectives of users, audit experts and suppliers of CASs. The results showed that the major barriers are related to the investment, or are of an organisational character, and that organisational and economic factors seemed to be important for making positive decisions on energy efficiency investments and measures in CASs. Major NEBs for CASs include productivity gains and the avoidance of capital expenditures. The results of this study also address the importance of having a comprehensive approach to recognise additional effects of energy efficiency improvements in CASs.

Place, publisher, year, edition, pages
SPRINGER, 2018
Keywords
Compressed air systems; Industrial energy efficiency; Barriers; Drivers; Energy efficiency measures; Non-energy benefits
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-148368 (URN)10.1007/s12053-018-9647-3 (DOI)000432748200014 ()
Note

Funding Agencies|European Commission within the European Regional Development Fund; Linkoping University

Available from: 2018-06-15 Created: 2018-06-15 Last updated: 2019-04-11
5. Energy management in Swedish pulp and paper industry: benchmarking and non-energy benefits
Open this publication in new window or tab >>Energy management in Swedish pulp and paper industry: benchmarking and non-energy benefits
2018 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Manufacturing industry has a large energy efficiency potential, yet to be utilized, known as the energy efficiency gap. This gap exists due to barriers that hinder industrial companies from making energy efficiency investments. Research also shows that the gap is even larger if energy management practices are included as well. One type of energy management practice for industrial companies is energy performance benchmarking, which deals with several organisational applications. For example, energy performance benchmarking can be used to compare a company’s degree of energy efficiency to its peers. A benchmarking approach can also be adopted on different levels of aggregation, including sector, site, and process level. Furthermore, continuous work with energy management also entails additional benefits beyond the energy effects, known as non-energy benefits. In an energy management context, these benefits might for instance be organisational or informational in nature. The aim of this paper is to study these aspects of energy management – benchmarking and non-energy benefits – within the Swedish pulp and paper industry.

These aspects of energy management have not, to the authors’ knowledge, been extensively investigated. The adopted method for data collection is a mixed method approach, where a questionnaire was sent to all operating pulp and paper mills in Sweden, and semi-structured interviews were carried out at six mills. The findings in this study show that the most common benchmarking method in the Swedish pulp and paper mills is external benchmarking within a company group. The benchmarking method with the highest perceived value for a mill’s energy management, however, is historical benchmarking of energy use. Furthermore, the pulp and paper mills have perceived a number of non-energy benefits from energy management practices, where top management’s interest in energy efficiency issues increasing more than expected was perceived as the most substantial.

Keywords
energy management, non-energy benefits (NEBs), benchmarking, pulp and paper industry, energy performance benchmarking
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-156296 (URN)
Conference
ECEEE Industrial Summer Study – Leading the low-carbon transition, Berlin, June 11-13
Available from: 2019-04-11 Created: 2019-04-11 Last updated: 2019-04-18Bibliographically approved
6. A Systematic Literature Review of Methods for Improved Utilisation of the Non-Energy Benefits of Industrial Energy Efficiency
Open this publication in new window or tab >>A Systematic Literature Review of Methods for Improved Utilisation of the Non-Energy Benefits of Industrial Energy Efficiency
2018 (English)In: Energies, ISSN 1996-1073, E-ISSN 1996-1073, Vol. 11, no 12, article id 3241Article, review/survey (Refereed) Published
Abstract [en]

Improvements in industrial energy efficiency demonstrated various additional effects beyond pure energy savings and energy cost savings. Observed on many levels, these additional effects, often denoted as non-energy benefits, constitute a diverse collection, for instance, effects related to firms production or improvements in the work environment and the external environment. Previous studies showed the potential of including quantified and monetised non-energy benefits in energy efficiency investments. However, there seems to be a lack of methodological overview, including all the steps from observation to monetisation and inclusion in investments. This study systematically reviews the academic literature on non-energy benefits relating to methods for observation, measuring, quantification, and monetisation of the benefits. The most commonly applied research design was a case study approach, in which data on non-energy benefits were collected by conducting interviews. Furthermore, the primary methods used to enable quantification and monetisation of observed non-energy benefits were based on classifications, indexes in relation to the energy savings, or frameworks. Calculation methods, databased tools, classification frameworks, and ranking were applied to evaluate the benefits potential in relation to energy efficiency investments. Based on a synthesis of the review findings, this article contributes a novel scheme for improved utilisation of the non-energy benefits of industrial energy efficiency.

Place, publisher, year, edition, pages
MDPI, 2018
Keywords
energy efficiency; energy efficiency measures; non-energy benefits; industry; systematic literature review; investment decisions
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-154122 (URN)10.3390/en11123241 (DOI)000455358300002 ()
Note

Funding Agencies|European Commission within the European Regional Development Fund; Linkoping University [20201478]

Available from: 2019-01-29 Created: 2019-01-29 Last updated: 2019-04-11

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