1. No category

Equipment Energy
efficiency Program
Discussion Paper
Improving the
Energy Efficiency of
Industrial Equipment
This paper has been prepared for the Equipment Energy Efficiency
Committee under the auspices of the Australian and New Zealand
Ministerial Council on Energy
September 2010
A joint initiative of Australian, State and Territory and
New Zealand Governments
© Commonwealth of Australia 2010
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be
reproduced by any process without prior written
permission from the Commonwealth.
Requests and inquiries concerning reproduction and
rights should be addressed to the:
Commonwealth Copyright Administration
Attorney General’s Department
Robert Garran Offices, National Circuit
Barton ACT 2600
or posted at:
http://www.ag.gov.au/cca
Prepared by Ian McNicol, Sustainability Victoria with
support from EnergyConsult.
This Report is available at
www.energyrating.gov.au
September 2010
2
Foreword
Through the Equipment Energy Efficiency (E3) Program,
governments in Australia and New Zealand work
cooperatively to increase the energy efficiency of new
appliances and equipment which are supplied into our
markets. The aim of the program is to increase the average
energy efficiency of equipment sold, increasing energy
productivity and therefore competitiveness, reducing energy
bills for consumers, and reducing greenhouse and other
environmental emissions.
Important: Purpose of this discussion paper
and next steps
The E3 Program already regulates the energy efficiency
of three-phase electric motors which are widely used
in industry, but to date, in comparison to its coverage of
appliances in the residential sector the program has a
relatively low coverage of equipment used in the industrial
sector.
Following consultation on this discussion document, further
work will be needed to develop the ideas discussed here
into policy and practice. These steps will involve:
The development of a 10-year Strategy on Industrial
Equipment has been a part of the E3 work program since
the mid-2000s. It was given added impetus in 2009, when the
Council of Australian Governments announced an intention
to expand minimum energy performance standards (MEPS)
significantly into the industrial sector to cover a wider range
of industrial equipment.
This Discussion Paper is the first step in developing the E3
Program’s Strategy for Industrial Equipment. It presents an
analysis of the contribution that industrial equipment fuelled
by electricity and gas make to energy use and greenhouse
emissions in Australia and New Zealand, and investigates the
feasibility of increasing the energy efficiency of key industrial
equipment through a regulatory approach.
This discussion document is not a statement of Australian
and New Zealand Government policy.
Stakeholder feedback on this discussion paper will be used to
inform the development of a 10-year Strategy on Industrial
Equipment, which will be sent to the Ministerial Council on
Energy for consideration in the second half of 2010.
• development of a 10-year strategy to improve the energy
efficiency of industrial products
• research and consultation to produce product profiles
for the key technologies covered in the strategy, and the
cost-benefit of regulation and possible measures
• consultation on Regulatory Impact Statements about
the possible measures, and changes to the appropriate
technical Standards
• recommendations to the Australian and New Zealand
Ministerial Council on Energy.
This process is expected to take at least two years, with
much formal and informal input sought throughout from
stakeholders in Australia and New Zealand.
New Zealand remains committed to the principle to align
its energy efficiency standards and labelling regime with
Australia. However, any subsequent policy proposals will
need to align with New Zealand priorities, satisfy New
Zealand cost-benefit criteria, and be suited to New Zealandspecific market characteristics and circumstances.
The potential expansion of MEPS to cover a wider range
of industrial equipment will mean that the program affects
a wider range of equipment manufacturers and suppliers.
We are keen to engage with these stakeholders as part
of the development of the Industrial Equipment Strategy,
and welcome stakeholder feedback on the paper and the
proposed Strategy it puts forward.
Mel Slade
Chair, Equipment Energy Efficiency Committee
i
Executive Summary
This Discussion Paper sets out ideas for improving the energy
efficiency of new industrial equipment such as motor-driven
systems, that is, electric motors connected to equipment
such as pumps and fans, and gas fuelled equipment such as
boilers.
The paper presents a high level analysis of the issues to
stimulate input from industry. Stakeholder feedback will be
used to inform the development of a 10-year strategy to
address the energy efficiency of new industrial equipment. It
contains technical information on how industrial processing
can be made more efficient, with ideas on how these can be
implemented in Australia and New Zealand.
Investigating ways to improve the efficiency of industrial
equipment is part of the Equipment Energy Efficiency
Programme (known as E3) work plan. The E3 programme
aims to increase the energy efficiency of products used in
the residential, commercial and industrial sectors in Australia
and New Zealand. The programme is jointly managed
and administrated by the New Zealand and Australian
Commonwealth governments, and the governments of
Australia’s states and territories.
Governments in both Australia and New Zealand have
ratified the Kyoto Protocol, and are committed to reducing
greenhouse gas emissions and securing energy supply at
least cost through a range of measures. Improving the energy
efficiency of appliances and equipment is considered one of
the key measures1.
1
See for example: National Strategy on Energy Efficiency, COAG, July 2009.
ii
What is industrial equipment?
Most industrial equipment forms part of a wider electric
motor driven system used in manufacturing, mining and
agriculture. Key equipment includes pumps, fans, air
compressors, process chillers and gas fired boilers.
Why make industrial equipment more energy
efficient?
The problem
Collectively, industrial equipment uses a lot of energy. Around
half of all industrial electricity consumption in Australia and
New Zealand is used by motor driven systems. Gas-fired
steam boilers account for around one quarter of industrial
gas consumption in Australia and around two-thirds in New
Zealand.
Consequently, small inefficiencies in individual parts at plant
level can lead to high energy waste on a national scale.
However, for many businesses, investing in more energy
efficient equipment is simply not a primary concern. The cost
of electricity or fuel is only a small portion of their overall
business costs, so potential savings tend to be outweighed by
the focus on keeping the production line running.
This is where interventions like regulation could help. For
example, stipulating the minimum energy efficiency of a
new pump or fan would reduce the need for businesses
to actively consider energy efficiency versus other ongoing
business costs.
Internationally, a number of countries already regulate key
industrial equipment through Minimum Energy Performance
Standards (MEPS), or utilise endorsement labelling or
efficiency certification programs.
Many initiatives could be adapted easily for our markets, to
achieve useful energy savings and reduced greenhouse gas
emissions. It would also align our markets with international
markets, thereby helping them to remain competitive.
Benefits of improved efficiency
Improving the energy efficiency of industrial equipment
could save significant amounts of energy. As well as
reducing operating costs for business, the wider benefits
include reduced national demand for energy, less need for
investment in energy infrastructure, and reduced greenhouse
gas emissions.
It is estimated that at least 20% of the energy currently used
in motor systems and 10% or the energy currently used
in steam systems2 could be saved cost effectively through
energy efficiency improvements – that is, the up front cost
would be redeemed by the savings over the lifetime of the
unit.
Over ten years, it is estimated that a programme which
applied measures such as those presented in this discussion
paper could achieve:
• annual greenhouse abatement of up to 2.8 Mt CO2-e for
a net benefit of $1,509 million in Australia; and
• annual greenhouse abatement of up to 196 Kt CO2-e for
a net benefit of NZ$529 Million in New Zealand, from
3,393PJs of energy savings.
Costs of improved efficiency
The incremental costs for businesses ($/kWh of annual
savings) from measures such as those presented in this
document are small in relation to their savings – and ongoing
energy costs without intervention.
Ideas for improving the energy efficiency of
industrial equipment
Australia and New Zealand already regulate the energy
efficiency of three-phase electric motors up to 185 kW
in size, and the ideas proposed in this document are
complementary. Electric motors do not stand alone, but form
part of a motor driven system. The system generally includes
the electric motor and any related controls, a mechanical
transmission system and a driven machine and its associated
downstream components.
The ideas proposed in this document include:
1. Energy performance test standards for key equipment,
where possible based on international standards. Key
equipment includes pumps, fans, air compressors,
industrial chillers and gas fired boilers;
2.Minimum Energy Performance Standards (MEPS) for key
equipment;
3.Mandatory disclosure of key energy performance data for
publication on publicly accessible web sites, and for use in
equipment selection and system optimisation tools;
4. Definition of high energy efficiency levels within
standards, to assist businesses to identify the best
performing equipment. In addition to assisting businesses
to select high efficiency equipment suitable for their
applications this would facilitate the introduction of
government incentives to encourage the uptake of high
efficiency equipment.
Some equipment types might be subjected to all four
measures, while others might only be required to disclose
energy performance data based on standardised tests.
For some products it may be appropriate to implement
voluntary testing and disclosure schemes initially, followed by
mandatory schemes. This approach was used for television
energy labelling and is also proposed for swimming pool
pumps.
The highest priority items for action are clearly industrial
pumps, fans and gas-fired boilers. Further detailed analysis for
these products should cover their use in both the industrial
and commercial sectors under the banner of ‘non-domestic’
equipment rather than just industrial equipment.
2
The majority of these savings come from system optimisation and best
practice measures such as correct motor sizing, matching the driven
equipment to the load profile, use of variable speed drives in appropriate
applications, and reducing downstream losses in the system. Use of high
efficiency motors and high efficiency equipment (eg pumps, fans) can
realise a relatively small but significant proportion of this potential.
While the focus of the E3 programme is primarily on MEPS
and labelling, initiatives for best practice or maintenance
could run alongside the more regulated approach.
iii
Have your say
Comments on this discussion document are welcome, and will
help to shape development of the 10-year Strategy.
The box below highlights key questions which the E3
Committee is particularly interested to obtain feedback
on. However, this list is not intended to be comprehensive
or prescriptive. We welcome all comments on any issue of
concern that arise from this paper.
Feedback can be sent to [email protected],
and should be received by close of business Friday 12 November 2010.
Key Questions
1.
Do you agree with the market data presented on
the different types of industrial equipment? If not,
are you able to provide better or more accurate
market data?
2.
Do you agree that current practices within industry
are leading to equipment with a relatively low
energy efficiency being installed, because businesses
focus on upfront costs rather than lifecycle costs?
3.
Do you agree that market failures and other nonprice barriers are limiting the uptake of energy
efficient industrial equipment? If yes, what do you
think are the key market failures and barriers?
4.
Do you think that there is a case for extending the
coverage of the E3 Program to regulate the energy
performance of additional types of industrial
equipment?
5.
Which, if any, technologies do you believe should
be regulated (and why) and do you agree with
the priority assigned to the different types of
equipment?
6.
Which measures do you believe have the greatest
potential to increase the energy efficiency of the
key types of industrial equipment?
7.
Do you think the suggested timing for the
introduction of these measures is appropriate?
8.
Do you have an opinion on the standards –
Australian and New Zealand, or international
standards – which could be used as the basis for
testing and regulating the energy performance of
the key types of industrial equipment?
9.
Are there any additional measures which the E3
Program could be considering to increase the
energy efficiency of industrial equipment?
10. Are there any additional types of industrial
equipment which you think should be considered
for regulation?
iv
Table of Contents
1. Introduction
1
1.1 P urpose of the Discussion Paper
1
1.2 Energy & Greenhouse Impact of Industrial Equipment 1
1.3 Overview of the Discussion Paper
4
2. The Policy Context 5
2.1 Introduction
5
2.2 Global Perspectives on the Role of Energy Efficiency Policy
5
2.3 The Policy Context for Energy Efficiency in Australia and New Zealand 6
2.4 The Equipment Energy Efficiency Program
6
2.5 The Rationale for Regulating Industrial Equipment
8
3. Electric Motor Systems
12
3.1 The Importance of Electric Motor Systems
12
3.2 Approaches to Improving System Efficiency 13
3.3 Improving the Efficiency of Components & Systems
14
4. Pumps
17
4.1 Pump Market & Impacts
17
4.2 Pump Technology
19
4.3 Approaches to Improving Pump Energy Efficiency 20
4.4 Potential Savings from More Efficient Pumps
24
5. Industrial Fans & Blowers
25
5.1 Fan Market & Impacts
25
5.2 Fan Technology
27
5.3 Approaches to Improving Fan Energy Efficiency
27
5.4 Potential Savings from More Efficient Fans
32
6. Air Compressors
33
6.1 Air Compressor Market & Impacts 33
6.2 Air Compressor Technology
35
6.3 Approaches to Improving Air Compressor Energy Efficiency
36
6.4 Potential Savings from More Efficient Air Compressors
38
7. Industrial Chillers
40
7.1 Chiller Market & Impacts
40
7.2 Chiller Technology
41
7.3 Approaches to Improving Industrial Chiller Energy Efficiency
41
7.4 Potential Savings from More Efficient Chillers
42
v
1 Executive Summary
8. Industrial Boilers
8.1 Boiler Market & Impacts
44
8.2 Boiler Technology
46
8.3 Approaches to Improving Boiler Energy Efficiency
46
8.4 Potential Savings from More Efficient Boilers
49
9. Towards a 10-Year Strategy for Industrial Equipment vi
44
50
9.1 The Case for Action
50
9.2 Key Priorities for Action
50
9.3 Potential Impact of an Industrial Equipment Strategy
53
9.4 Development of an Industrial Equipment Strategy
57
References
59
Appendices
61
Appendix 1 – Model of Industrial Energy Use in Australia and New Zealand 61
1Introduction
1.1. Purpose of the Discussion Paper
The Australian and New Zealand Governments, and
Australian State and Territory governments, work
cooperatively through the Equipment Energy Efficiency (E3)
Program to increase the energy efficiency of appliances and
equipment sold, and have a long standing commitment to
develop an Industrial Equipment Strategy. The E3 Committee
is ultimately directed by the Ministerial Council on Energy,
comprised of Energy Ministers from all jurisdictions. In
Australia, E3 operates under the auspices of the National
Framework for Energy Efficiency (NFEE) and the recently
agreed National Strategy for Energy Efficiency (NSEE).
Currently a range of domestic electrical appliances, and some
lighting, industrial and commercial equipment offered for
sale in Australia and New Zealand are subject to mandatory
energy labelling requirements and/or mandatory minimum
energy performance standards (MEPS).
Labelling requirements apply to domestic refrigerators
and freezers, clothes washers and dryers, dishwashers and
single-phase air conditioners, and more recently televisions.
MEPS apply to refrigerators and freezers, electric storage
water heaters, three-phase induction motors (0.73kW to
<185kW), distribution transformers, three- and single-phase
air conditioners, linear fluorescent lamps and their ballasts,
commercial refrigeration, external power supplies, set top
boxes, commercial building chillers and close control air
conditioners. MEPS were recently introduced for televisions,
and for both incandescent and compact fluorescent lamps in
Australia.
Regulation of standby power in a wide range of home
electronics and other equipment is under consideration, as is
the regulation of boiling and chilled water dispensers, a wider
range of commercial and industrial refrigeration equipment
and components, and lamps and lighting equipment.
Energy efficiency regulations are based on energy
performance tests, and labelling and minimum performance
requirements published in joint Australian-New Zealand
Standards, and are established through a consultative
standards process. Australian State and Territory, and New
Zealand regulations then call up any energy labelling or MEPS
requirements which are contained in these standards. They
also specify penalties for non-compliance. In Australia, State
and Territory legislation is necessary because the Australian
constitution gives these jurisdictions responsibility for
resource management issues, including energy.
In regard to industrial products, three-phase induction
motors and distribution transformers are already subject to
MEPS. A proposal to increase the stringency of MEPS for
distribution transformers is currently under review, and the
energy efficiency of lighting equipment used in industrial and
other sectors is also being addressed as part of the Greenlight
Australia strategy [NAEEEP, Nov 2004].
The purpose of this Discussion Paper is to explore the
potential for the Equipment Energy Efficiency (E3) Program
to facilitate further energy and greenhouse savings in the
industrial sectors in Australia and New Zealand through the
development of MEPS, labelling programs and other related
measures for a wider range of new industrial equipment.
The paper presents a high level analysis of the issues and
proposes a 10-year Strategy to address the energy efficiency
of new industrial equipment, as the basis for initiating
discussion with industry and government stakeholders.
The focus of the paper is on measures which can be
implemented through the E3 Program. It is not the purpose
of the paper to canvass other, broader measures to improve
the energy efficiency of industrial equipment or of industry
more generally.
While the focus of this Discussion Paper is primarily on
industrial equipment which uses electricity and gas (natural
gas & LPG), some classes of equipment (eg pumps, fans
and boilers) have applications across the industrial and
commercial sectors, and so any measures that regulate the
energy efficiency of these products are likely to have an
impact in the commercial sector as well.
1.2. Energy & Greenhouse Impact of Industrial
Equipment
The ‘industrial sector’, which is defined for this study as
including manufacturing, mining and agriculture, is a major
contributor to energy consumption and greenhouse gas
emissions in both Australia and New Zealand.
The projected business-as-usual growth of combined
electricity and gas consumption in the industrial sectors in
Australia3 and New Zealand is shown in Figure 1. Australian
data [ABARE 2007a & b] shows that in 2005/06 the
industrial sector consumed 776 PJ of electricity and gas,
equivalent to an estimated 136.1 Mt of (full fuel cycle)
greenhouse gas emissions. This is projected to grow [ABARE
2007b] to 1,101 PJ in 2019/20 (or 153.6 Mt of greenhouse
emissions).
In New Zealand the combined electricity and gas
consumption in the industrial sector is estimated at 88.2 PJ in
2006, equivalent to around 5.2 Mt of greenhouse emissions.
This is expected to decline in 2008 and 2009, and then grow
slowly to around 106.6 PJ in 2020, equivalent to around 5.5
Mt of greenhouse emissions [MED 2009].
In Australia the consumption of electricity and gas in the
industrial sector is estimated to be around ten times larger
than in New Zealand over the period 2005/06 to 20019/20.
3
The Australian projections are from [ABARE 2007b] and were made
without taking into account Australia’s ratification of the Kyoto Protocol,
the Australian Government setting carbon pollution reduction targets for
2020 and 2050, any Carbon Pollution Reduction Scheme or the increase
of Australia’s Renewable Energy Target to 20% by 2020.
1
Figure 1: Projected Electricity & Gas Consumption in the Industrial Sector [ABARE 2007], [MED 2009]
1,200
Total Elec & Gas Consumption (PJ)
1,000
800
Australia
600
New Zealand
400
200
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
In Australia the consumption of electricity and gas in the
industrial sector are of a similar magnitude, while in New
Zealand’s industrial sector electricity consumption is around
twice the level of gas consumption (see Figure 2).
To develop a 10-year Strategy to increase the energy
efficiency of key industrial equipment, it is necessary to
understand the contribution that these equipment types
make to electricity and gas consumption, and therefore
greenhouse emissions, in the industrial sector. EnergyConsult
was commissioned to develop a model of energy use
and greenhouse emissions in the industrial (defined as
manufacturing, mining and agricultural) and commercial
2015
2016
2017
2018
2019
2020
sectors in Australia and New Zealand4. The model provides
an estimated breakdown of energy end-use into the key
industrial equipment types which are likely to be amenable
to MEPS, and generates savings and cost-benefit estimates
for two policy options which could be used to drive energy
efficiency improvements for these equipment types: (1) the
implementation of MEPS; and (2) the implementation of a
limited best practice program which targets the sale of new
equipment.
The estimated equipment energy end-use breakdowns for
electricity and gas in 2005/06 derived from this model are
4
See Appendix 1 for further information on this model.
1,200
120
1,000
100
800
Gas
Electricity
600
400
2005/6
2019/20
Australia
2
80
Gas
Electricity
60
40
20
200
0
Energy Consumption (PJ)
Energy Consumption (PJ)
Figure 2: Split between Electricity and Gas Consumption in the Industrial Sector [ABARE 2007a & b], [MED 2009]
0
2005/6
2019/20
New Zealand
Figure 3: Equipment End-Use Breakdown for Electricity in the Industrial Sector 2005/06
Air
compressors
3.6%
Fans
4.9%
Pumps
12.2%
Pumps
13.4%
Industrial
chillers
3.3%
Fans
7.2%
Air
compressors
5.6%
Industrial
chillers
4.9%
Other motor
drives
24.5%
Other motor
drives
24.4%
Other
44.6%
Other
51.5%
AUSTRALIA
NEW ZEALAND
Figure 4: Equipment End-Use Breakdown for Gas in the Industrial Sector 2005/06
Boilers
25%
Other
36%
Other
75%
Boilers
64%
AUSTRALIA
shown in Figures 3 and 4 respectively. While there is some
variation – mainly due to structural change within industry
sub-sectors - these percentages are projected to remain
fairly stable out to 2020.
Motor driven systems, that is, electric motors connected to
equipment such as pumps and fans, are estimated to account
for around half of all electricity consumption in the industrial
sector in Australia (48.5%) and New Zealand (55.4%)
[EnergyConsult 2008d]. The MEPS which have already
been applied to three-phase electric motors only reduce
the energy losses in motors as they convert electricity into
motive power for a particular application. While motor MEPS
are delivering worthwhile and cost effective greenhouse
savings, the majority of the energy consumption in motor
driven systems is not covered by these MEPS.
Key industrial electrical equipment which may be amenable
to a MEPS approach includes ‘off-the-shelf ’ pumps, fans/
blowers, air compressors and industrial chillers. In Australia
this group of equipment is estimated to account for around
24.0% of industrial electricity use, while in New Zealand it
is estimated to account for a larger share of around 31.1%,
mainly due to a larger contribution from fans and industrial
NEW ZEALAND
chillers [EnergyConsult 2008d]. The ‘other motor drives’
group includes mixing, grinding and materials handling
equipment, and accounts for around one-quarter of industrial
electricity use in both Australia and New Zealand. While
this equipment is unlikely to be amenable to MEPS, there
is a significant potential to reduce energy consumption
by optimising system efficiency through the selection of
appropriate system components such as motors and
couplings, and the use of speed control systems.
In Australia, energy consumption in the ‘other’ group
of electrical equipment is dominated by electrolytic
and metallurgical equipment in the metals industries,
while in New Zealand it is dominated by furnaces and
kilns [EnergyConsult 2008d]. This type of equipment is
large, expensive and generally custom-made for specific
applications, and is unlikely to be amenable to initiatives
which target new equipment at the time of sale.
Gas fired boilers are the main item of gas equipment
considered to be amenable to a MEPS approach. They are
estimated to account for around 25% of gas consumption
in the industrial sector in Australia and a much larger 64%
in New Zealand [EnergyConsult 2008d]. In both Australia
3
Figure 5: Greenhouse Breakdown for Electric & Gas End-Use Equipment
Other - elec
42.0%
Other - elec
31.1%
Boilers
4.7%
Other motor
drives
19.9%
Other - gas
13.8%
Industrial
chillers
2.7%
Pumps
10.0%
Air
compressors
3.0%
Fans
4.0%
AUSTRALIA
and New Zealand the ‘other’ gas equipment category is
dominated by energy use in furnaces and kilns. These are
also unlikely to be amenable to a MEPS approach.
The contribution of industrial equipment to greenhouse gas
emissions is also an important consideration when assessing
the need for government intervention to increase energy
efficiency. The energy end-use model has been used to
estimate the contribution of different equipment end-uses to
greenhouse emissions arising from combined electricity and
gas use in the industrial sector, and this is presented in Figure
5 [EnergyConsult 2008d].
The importance of measures targeting electric motor
systems is evident from Figure 5, as this area is estimated to
account for 39.5% of total industrial emissions resulting from
electricity and gas in Australia and 38.7% in New Zealand.
At 19.2% of New Zealand emissions, boilers are also a clear
priority for action.
Boilers
19.2%
Other motor
drives
17.0%
Industrial
chillers
3.4%
Other - gas
10.9%
Air
compressors
3.9%
Fans
5.1%
Pumps
9.4%
NEW ZEALAND
1.3.Overview of the Discussion Paper
This Discussion Paper explores the potential for
implementing mandatory minimum energy performance
standards (MEPS) for a further five types of industrial
equipment, and other equipment focussed measures to
improve the energy efficiency of new industrial equipment in
Australia and New Zealand, over a 10-year period.
Section 2 of the paper discusses the policy context and
rationale for further expanding the E3 Program’s coverage
of equipment which is regulated for energy efficiency in the
industrial sector.
Most industrial equipment forms part of a wider system, and
Section 3 of this paper discusses approaches to reducing
energy consumption in electric motor systems, including
electric motors. While the focus of this paper is on the
driven equipment (pumps, fans, etc), it is important to
understand the role which increasing the energy efficiency of
this equipment could play in efforts to improve the overall
energy efficiency of motor systems.
Sections 4 to 8 explore the potential for using MEPS or
other energy efficiency measures to increase the energy
efficiency of key items of industrial equipment. These include:
pumps; fans; air compressors; industrial chillers; and industrial
boilers (Sections 4, 5, 6, 7 and 8 respectively).
The final part of the Paper (Section 9) proposes a
Strategy to improve the energy efficiency of new industrial
equipment over a 10 year period and beyond, based on the
proposed implementation of MEPS for key products and the
implementation of a limited best practice program targeting
new equipment, and considers the potential impact of this
strategy.
4
2 The Policy Context
2.1 Introduction
The greenhouse abatement and climate change policies of
Australia and New Zealand have evolved steadily since the
early 1990’s, and have followed similar policy trajectories.
They started with information programs, moved to regulated
standards and labelling and programs to promote the uptake
of renewable energy, and then to the current situation
where national emissions trading schemes are seen as a
core element of efforts to achieve medium and long-term
greenhouse abatement goals.
2.2 Global Perspectives on the Role of Energy
Efficiency
In the international arena, energy efficiency is increasingly seen as
a central component of a strategy to reduce global greenhouse
emissions.This is reflected in advice the International Energy
Agency provided for the 2008 G8 Summit5:
Improving energy efficiency in all sectors of the economy is
fundamental and urgent. It has the greatest potential for
CO2 savings and the lowest cost (in most cases negative
costs). Energy efficiency can deliver results quickly. But our
analysis of recent efficiency trends shows that the past ten
years’ performance in IEA member countries has declined to
about half the rate of improvement in previous decades. A
fundamental turn-around is needed. ('Towards a Sustainable
Future')
Energy efficiency has been, and remains, an important
element in the response to climate change in both
countries, and is also seen as a way to increase business
competitiveness and improve the security of energy supply.
In both Australia and New Zealand it is clear that energy
efficiency, including regulated equipment energy efficiency
standards, will continue to play an important role in
addressing the challenge of climate change, stimulating
economic growth, and achieving a range of other policy
objectives if it:
• Lowers
the operating cost of business (by reducing
energy consumption) meaning they are more competitive
with reduced carbon dioxide emissions;
• Lowers
the overall cost of achieving national greenhouse
abatement targets, by providing least-cost greenhouse
abatement;
• Drives
energy efficiency improvements in those sectors
of the economy where, due to a range of market failures
and non-price barriers relating to energy end use, the
carbon price signal resulting from an emissions trading
scheme is likely to have a relatively small impact;
The IEA projects global primary energy demand could grow
by 55% from 2005 to 2030, raising serious energy security
and environmental sustainability concerns. How will we meet
energy demand? …. How will we mitigate the resulting 57%
increase in carbon dioxide emissions? Rapidly implementing
energy efficiency measures is the crucial first step towards
addressing these challenges at low or negative costs. (25 IEA
Policy Recommendations)
The onset of the Global Financial Crisis has also seen a
number of major economies turning to energy efficiency
to provide an economic stimulus as well as addressing
environmental issues. In announcing a range of new energy
efficiency efforts under the US Recovery Act in June 2009,
both US President Barak Obama and his Energy Secretary,
Stephen Chu, noted the important economic benefits of
energy efficiency6:
One of the fastest, easiest, and cheapest ways to make our
economy stronger and cleaner is to make our economy more
energy efficient. … That’s why we made energy efficiency
investments a focal point of the Recovery Act. (President
Obama)
• Helps
to address any adverse distributional impacts
arising from an emissions trading scheme.
When it comes to saving money and growing our economy,
energy efficiency isn’t just low hanging fruit; it’s fruit lying
on the ground. The most prosperous, competitive economies
of the 21st century will be those that use energy efficiently. It’s time for America to lead the way. (Stephen Chu, Energy
Secretary)
5
A range of publications are available at: http://www.iea.org/G8/index.asp
. See for example: 25 IEA Policy Recommendations, ‘Towards a Sustainable
Energy Future’ - IEA programme of work on climate change, clean energy
and sustainable development, and 2008 IEA report Energy Technology
Perspectives: Scenarios and Strategies to 2050
6
http://www.energy.gov/news2009/7550.htm
5
Governments in both Australia and New Zealand have
ratified the Kyoto Protocol, and are committed to reducing
greenhouse gas emissions and securing energy supply at
least cost through a range of measures. Improving the energy
efficiency of appliances and equipment is considered one of
the key measures7.
2.3 The Context for Energy Efficiency in
Australia and New Zealand
Australia
In July 2009 the Council of Australian Governments (CoAG)
agreed a National Strategy for Energy Efficiency (NSEE) to
accelerate energy efficiency efforts across all governments
through a range of measures which include Minimum Energy
Performance Standards (MEPS) and Energy Rating Labelling
for energy using products.
Under NSEE measure 2.2.1, which covers the MEPS program,
key element (b) notes that the NSEE will: ‘Expand MEPS
significantly into the industrial equipment sector to cover
off-the-shelf products in areas such as: compressors, boilers,
industrial chillers, pumps and fans, heat exchangers and
refrigeration equipment. ‘
New Zealand
While industrial energy efficiency measures can contribute
cost-effectively to reducing greenhouse emissions, in New
Zealand greenhouse abatement is seen as a secondary
benefit as the energy sector contributes less to greenhouse
emissions than in Australia. This is due to two main reasons:
renewable sources already contribute some 65-70% of New
Zealand electricity supply (which is expected to increase
further in line with its renewable electricity target8); and, a
high proportion of New Zealand’s emissions come from the
agricultural sector which is not significantly related to energy
use.
Improving industrial energy efficiency has the potential to
provide the following key benefits for New Zealand:
• Economic growth – through improved productivity and
international competitiveness.
• A
more secure energy supply;
It also reduces the need to run fossil fuelled generation
(particularly during periods of high demand or supply
shortage), reduces the need to invest in new energy supply
infrastructure, and reduces the amount of renewable
electricity required for New Zealand to achieve its
renewable electricity generation target.
The government is reviewing the New Zealand Energy
Strategy (NZES) and the companion New Zealand Energy
Efficiency and Conservation Strategy (NZEECS). The
revised strategies are expected to support the government’s
overriding goal of maximising economic growth. It is
expected that secure, environmentally responsible and
affordable energy, as well as using energy more efficiently
and developing energy resources, will support the global
competitiveness of firms and provide tangible evidence
of the government’s commitment to environmental
responsibility.
The government remains keen to encourage energy
efficiency gains, as this saves consumers money, reduces
demand for electricity, with a consequent positive effect on
New Zealand‘s energy emissions profile.
New Zealand ratified the Kyoto Protocol in 2002, and is
committed to reducing its greenhouse gas emissions back
to 1990 levels, on average, over the period 2008 to 2012
(or to take responsibility for any emissions above this level
if it cannot meet this target). Measures that help reduce
energy-related greenhouse gas emissions make an important
contribution to meeting this target.
Furthermore, in August 2009 the government announced a
conditional 2020 emission reduction target range of 10-20
per cent below 1990 levels. In addition, the government has a
domestic responsibility target of reducing net emissions to 50
per cent below 1990 levels by 2050.
As a central part of its climate change policy the Climate
Change Response (Moderated Emissions Trading)
Amendment Act 2009 was passed in November 2009 to
implement a workable and affordable emissions trading
scheme for New Zealand.
2.4 Equipment Energy Efficiency Program
Government regulation to promote the sale of more energy
efficient products has been a key element of Australia’s
response to the challenge of climate change for over 16
years. Mandatory appliance energy labelling for domestic
refrigerators and freezers was first introduced by the
NSW Government in 1986, followed shortly afterwards by
other states. Mandatory labelling for other major electrical
appliances also followed.
The National Appliance and Equipment Energy Efficiency
Program (NAEEEP) was created in 1992 under the auspice
of the then Australian and New Zealand Minerals and
Energy Council (ANZMEC)9 as part of Australia’s National
Greenhouse Response Strategy, and led to a nationally
coordinated program of mandatory labelling for six key
domestic electrical appliances. Work also commenced on
the introduction of minimum energy performance standards
(MEPS) to eliminate the least efficient products from the
market.
7
See for example: National Strategy on Energy Efficiency, COAG, July 2009.
8
The New Zealand government has an aspirational goal that 90 per cent
of the country’s electricity will be generated from renewable sources by
2025 (based on an average hydrological year) providing it is not at the
expense of security of supply.
6
9
In 2001, ANZMEC was replaced by the Ministerial Council on Energy,
comprising Energy Ministers for all Australian jurisdictions and New
Zealand.
Under Australia’s 1998 National Greenhouse Strategy, the
program was given a mandate to expand its coverage to the
commercial and industrial sectors, and the program focus
shifted from energy labelling to MEPS. The first MEPS were
introduced in 1999 for domestic refrigerators and freezers
and mains pressure electric water heaters, and these were
subsequently followed by a number of other domestic,
commercial and industrial products, so that by the end of
2009 a total of 18 product types had been regulated for
MEPS.
New Zealand has participated in monitoring the Australian
program since the late 1990’s, and in 2001 the New Zealand
government created its own mandatory MEPS and labelling
program. Since then Australia and New Zealand have sought
to operate a coordinated Trans-Tasman scheme, to meet
the requirements of the Trans-Tasman Mutual Recognition
Agreement (TTMRA), and to provide economic efficiencies
for both government and the industry sectors impacted by
efficiency regulations.
Energy Ministers from all Australian jurisdictions and New
Zealand convene as the Ministerial Council on Energy (MCE),
the body responsible for making decisions to regulate the
energy efficiency of appliances and equipment.
In July 2004 the MCE endorsed Australia’s National
Framework for Energy Efficiency (NFEE), and around the
same time the formal name of the program shifted to the
Equipment Energy Efficiency (E3) Program. The program
was given a mandate to shift from its traditional focus on
electrical appliances and equipment to take on energy
efficiency regulation for gas appliances. Since the late 1980s,
common domestic gas appliances have been subjected to
MEPS and energy labelling through an industry-run scheme
coordinated by the Australian Gas Association. These
requirements are mandatory in some Australian jurisdictions
where MEPS and labelling form part of a mandatory safety
certification process. The first gas product (water heaters)
is yet to be formally regulated by the E3 Program but
regulations are scheduled to be introduced in October 2010.
Under NFEE Stage One, covering the period 2004/05 to
2006/07, the MCE endorsed the following general principles
to underpin the implementation of the Program:
–– Use of market regressions to remove an agreed
percentage of the least efficient products from the
market – where there is no basis for international
comparison or as part of a staged regulatory process
to ease industry toward more stringent regulatory
targets in the future;
• Harmonisation
of the regulatory work program with
New Zealand;
• Test
standards and regulatory levels to be based on
international standards where possible, or on joint
Australian/New Zealand standards where there is no
international precedent;
• Regular
review of existing MEPS levels to increase
stringency levels, with guarantees of maintaining
regulatory periods of 4 years, unless a shorter cycle is
agreed with industry stakeholders.
At its October 2006 meeting, the MCE provided some
guidance on the overall mandate for NFEE Stage Two (which
commenced in July 2008):
... new energy efficiency measures which deliver net public
benefits, including low cost greenhouse abatement measures
that do not exceed the cost of alternate measures being
undertaken across the economy.
Previously, the E3 Program was constrained to ‘no regrets’
measures, meaning regulation would only be contemplated
where the proposal resulted in net community benefit.
The policy context for the E3 Program has continued
to evolve over the last few years, with COAG’s recent
agreement to the National Strategy for Energy Efficiency.
It is recognised that even with a price signal for carbon
emissions, impediments are likely to remain that will prevent
businesses from taking-up all cost-effective energy efficiency
opportunities. These impediments arise from a range of
market failures and barriers, especially information failures
and split incentives. In this context, a key rationale for energy
efficiency regulation is to address the market barriers or
failures which hinder the uptake of cost-effective energy
efficiency10.
• A
mandate to regulate any energy-consuming product,
subject to a positive cost-benefit study, and stakeholder
and community consultation. The additional benefits of
reduced peak demand and reduced water consumption
could also be taken into consideration, where
appropriate;
• MEPS
levels to be established by selecting the most
appropriate option (in decreasing order of preference)
from:
–– Leading the world with regulatory standards - where
this approach is economically viable and is supported
by resident industry;
–– Matching world’s best regulatory practice – where
there are reasons to align with major trading partners;
10
National Strategy on Energy Efficiency, COAG, July 2009.
7
2.5 Rationale for Regulating Industrial
Equipment
Historically, the energy efficiency performance of Australasian
industry has been below average compared to other
developed countries. In Figure 6, which presents the results
of a recent IEA analysis of energy efficiency performance
from 1990 to 2005, energy intensity is taken to be a proxy
for energy efficiency [IEA 2008a]11. At an annual average
percentage change in energy intensity of -0.6 % per annum,
the Australian performance is considerably worse than
the average for the IEA member countries of -1.3% per
annum. New Zealand, at -1.8% per annum, has performed
considerably better than the IEA average, although lags
behind both the United States (-2.0% per annum) and
Germany (-2.4% per annum).
The IEA’s average energy intensity figure is boosted by
substantial energy efficiency improvements in a few of
the larger countries. For example, Germany’s fast rate of
improvement was strongly influenced by the closure of large
inefficient plants following reunification in the early 1990’s.
Australia has a relatively energy intensive manufacturing
sector due to: the large proportion of energy intensive raw
material production; relatively inexpensive energy prices;
and structural changes in the economy towards the more
energy intensive sub-sectors of manufacturing, such as basic
nonferrous metals.
The IEA study concluded that:
Accelerating energy efficiency improvements is a crucial
challenge for energy and climate policies. Governments must
act now to develop and implement the necessary mix of
market and regulatory policies, including stringent norms
and standards.
In both Australia and New Zealand, energy efficiency is
seen as an important element of a comprehensive response
to climate change, stimulating the economy and ensuring
security of energy supply. Regulated equipment energy
efficiency standards are one of a range of potential energy
efficiency measures that could improve industrial energy
efficiency12.
11
The IEA methodology for analysing energy end-use trends distinguishes
between three main components affecting energy use: activity levels,
structure (the mix of activities within a sector) and energy intensities
(energy use per unit of sub-sectoral activity). A reduction in energy
intensity represents an improvement in energy efficiency. The figures
need to be used with caution as a range of factors, including the energy
intensity base from which a country’s performance is measured have
large impacts on the rate of improvement.
A number of international, Australian & New Zealand studies
have highlighted the role that energy efficiency can play in
12
Australia’s National Strategy on Energy Efficiency, and New Zealand’s
Energy Efficiency and Conservation Strategy provide information on the
range of measures being pursued by governments.
Figure 6: Comparison of Industrial Energy Efficiency Performance 1990 to 2020 [IEA, 2008]
8
Figure 7: McKinsey & Company’s Australian Greenhouse Abatement Cost Curve for 2020
delivering low cost greenhouse abatement over the coming
decades, and these are consistent with analysis undertaken
by the International Energy Agency [IEA 2008b]. The most
recent of these [McKinsey & Company 2008] estimated that
in Australia almost 80 Mt of greenhouse abatement could
be achieved by 2020 from measures that had a net negative
cost of abatement, with the majority of opportunities
provided by energy efficiency measures.
McKinsey and Company presented the results of their
analysis as greenhouse abatement cost curves, and the curve
for 2020 is shown in Figure 7. Based on their analysis, the
least cost measure relates to improving the energy efficiency
of electric motor systems, with an estimated net cost of close
to –AU$200 per tonne.
The report recommended that the Australian Government
rapidly pursue the negative-cost opportunities by introducing
standards and/or incentives to address current market
imperfections which are leading to the opportunities on the
left-hand side of the abatement curve not being taken up.
They noted that it was important to act quickly because
every year that energy efficient products were not taken
up by the market ‘the greater the volume of negative-cost
opportunities we lose’. Further, they noted that the ‘cost of
creating a new energy-efficient asset is typically a fraction of
the cost of retrofitting it later, or retiring an asset before its
useful life is over’.
A recent New Zealand study has also highlighted the
extent to which energy efficiency can provide cost effective
greenhouse abatement and deliver net economic and social
benefits [Covec, 2007]. The Covec study estimated that
energy efficiency could provide greenhouse savings of 0.67Mt
by 2010 and 2.7 Mt by 2030 at a net cost of abatement of
less than $0/tonne. In a similar vein to the McKinsey and
Company, the Covec study concluded that:
There are opportunities for ‘no cost’ and ‘low cost’
improvements in energy efficiency in all sectors examined.
Many of these are associated with long run investments for
which delays in implementation will result in many years
of additional energy use and greenhouse gas emissions. …
Many of the energy efficiency opportunities are associated
with market failures and will not necessarily be encouraged
by price instruments such as carbon charges or emissions
trading. Rather they require targeted intervention.
As noted above, current debates on energy efficiency policy
focus on whether the policies will be complementary to
9
an emissions trading scheme by addressing market failures
and other non-price barriers which result in a sub-optimal
uptake of cost-effective energy efficiency. There are three key
market failures and barriers which can be addressed through
energy efficiency policies such as regulated minimum energy
performance standards:
• Split incentives (also known as principle-agent problems);
• Information failures, including information asymmetry; and,
• Bounded-rationality (defined below)
Garnaut [2008, page 444] noted that: ‘A substantial
proportion of the low-cost low-emissions opportunities
in Australia are in sectors that are affected by information
and principal–agent market failures. Much of the mitigation
potential in these sectors could be achieved relatively early.’
Further, he argued that the market was more likely to
overcome these barriers in large firms.
Split incentives (or principal-agent problems) occur when
one party (the principal) pays another party (the agent) for
a service, but the parties have different incentives [Garnaut
2008]. An example of this is a firm which uses an electrical
contractor to select and install a new electric motor to
replace a faulty one: - the contractor is likely to replace
like-with-like, reducing equipment costs, risk of error and
the time taken to select a motor. The electrical contractor
does not pay the firm’s energy bills, and therefore doesn’t
have an incentive to lower the ongoing energy cost of the
motor. Even if a firm has an in-house electrical department,
the principle-agent problem can still occur, as the electrical
department is unlikely to be responsible for the energy bill,
and restoring production as quickly as possible is likely to be
a higher priority than saving energy.
Garnaut [2008] notes that split incentives ‘may entirely
insulate some decisions from a carbon price, potentially
reducing the adoption of low-emissions options’.
Information asymmetry occurs when two parties to a
transaction do not have equal access to relevant information
[Garnaut 2008, page 452]. Potentially significant information
asymmetries exist where industrial equipment is not
‘energy rated’, making it difficult for non-experts to assess
its level of energy efficiency or determine its energy costs.
Garnaut notes that this ‘allows opportunism, as a product
manufacturer could mislead a buyer on the efficiency of a
product, which the buyer is unable to verify’.
The preferred policy in response to information asymmetry
is the mandatory disclosure of energy performance, as occurs
with common household appliances such as refrigerators.
However, Garnaut [2008] notes that: ‘Mandatory disclosure
may not always be able to address information asymmetries,
if bounded rationality prevents one or more parties from
usefully applying the information, or if one of the parties is
not the actual decision maker’. Minimum energy performance
standards can help circumvent the need for individuals to
identify and avoid equipment that has high ongoing energy
10
costs, by removing the least efficient products from the
market.
Garnaut [2008, page 447] notes that ‘Even where individuals
have access to sufficient information, they may make
decisions that appear personally suboptimal for reasons of
‘bounded rationality’. Bounded rationality is the concept that
individuals and firms may not be able to always make perfect
or optimum decisions, as their knowledge and processing
abilities are limited. In some cases, socially suboptimal
outcomes result.’
A key cause of bounded rationality relating to the purchase
of industrial equipment is that energy represents only a small
percentage of the operating costs of most firms, and is ‘noncore’ business. This may mean that little attention is given
to reducing energy consumption through the purchase of
more efficient equipment; attention is focussed on the main
cost centres, or on activities that can improve the quality or
marketability of a firm’s products.
According to ABS data, energy expenditure accounts for a
relatively small percentage of overall expenditure in the main
sectors where industrial equipment is used in Australia [ACG
2008]:
• 7.94% of overall expenditure in the mining sector; and
• 7.17% of overall expenditure in the manufacturing sector.
Data on energy costs prepared by NIEIR for the Victorian
Government [NIEIR 2003]. shows that in Victoria, in all but
the most energy intensive industries (Metal Products), energy
costs represent a very small share of overall production costs.
Table 1: Energy Costs as a share of material costs in Victorian
industry sub-sectors
Industry
Electricity
Gas
Mining
2.7%
0.1%
Food, beverages & tobacco
0.8%
0.5%
Textile, clothing, footwear & leather
2.2%
0.7%
Wood, paper & printing
1.6%
0.7%
Petroleum, coal & chemical
0.9%
0.4%
Non-Metallic mineral products
1.7%
2.4%
Metal products
4.3%
0.7%
Machinery & Equipment
0.5%
0.1%
Other manufacturing
0.1%
0.0%
Manufacturing
The low share of energy costs in overall costs for most
businesses, and the generally non-core nature of energy use
results in a fairly low price elasticity of demand for industrial
energy use. It is estimated [ACG 2008] that in the industrial
sector in Australia, the ‘own price elasticity of demand’ for
electricity is -0.38 and for gas is -0.30. These estimates suggest
that over the long term, a ten per cent increase in energy
prices would lead to a reduction in demand for electricity of
3.8 percent and for gas of 3.0 percent. The Allen Consulting
Group report concludes that in the industrial sector:
Given the inelasticity of demand for energy and the small
percentage of overall expenditure energy consumption
represents, pricing mechanisms alone under moderate price
increases expected in the coming decade, are unlikely to
drive industry to close the energy efficiency gap.
Minimum energy performance standards can be of use to
firms because they remove the least efficient equipment
from the market, and therefore circumvent the need for
individuals to identify and avoid the equipment which has the
highest ongoing energy costs.
Garnaut concludes that there ‘is a case for standards where
bounded rationality and principal–agent problems render
other policy options ineffective’, and that if they are ‘designed
appropriately, with good knowledge of the costs and benefits
and sufficient lead time for industry to respond, experience
from both Australia and abroad has indicated that they can
be cost effective in supporting the uptake of low-emissions
options’ [Garnaut, 2008, page 458]. He suggests that if
regulated efficiency standards are introduced they should
focus on:
• performance,
rather than specifying technology
• features that are unlikely to affect consumers, such as
energy efficiency …
• removing poorly performing products, as it will be
generally easier to identify the products that are the least
cost-effective for the majority of users, than the products
that are the most cost-effective options for all parties in
all circumstances
These have been the underlying principles for the
development of the MEPS programs operating in Australia
and New Zealand since inception.
11
3 Electric Motor Systems
3.1 The Importance of Electric Motor Systems
Electric motors do not stand alone, but form part of a motor
driven system. The system generally includes the electric
motor and any related controls, a mechanical transmission
system and a driven machine and its associated downstream
components. The driven machine relates to the application,
and in industrial applications generally includes pumps, fans,
air compressors, conveyors, grinding and milling machines,
and machine tools [UKMTP 2006 & 2007].
Globally, electric motor systems are estimated to account
for around 60% of all electricity consumption in the
manufacturing sector [IEA 2007]. In Australia it is estimated
that electric motor systems account for around 49% of
electricity used in the industrial sector (manufacturing, mining
& agriculture), and in New Zealand for around 55% of
electricity used in this sector [EnergyConsult 2008d].
In the United States pumps, air compressors, fans and
refrigeration chillers account for the majority of electricity
used by industrial motor systems. Data derived from
EnergyConsult’s industrial model (see Figure 8) indicates
that these are also significant areas of electricity end use in
Australia and New Zealand, although electricity use by air
compressors and fans is estimated to be less significant than
in the US.
Figure 8: Breakdown of Industrial Electricity Use by Electric
Motor Systems13
Other motor drives
Industrial chillers
Air compressors
Fans
Pumps
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Aust
13
NZ
US
US data from [IEA, 2007], Australian & New Zealand data from
[EnergyConsult, 2008]. Note that ‘Other motor drives’ includes
conveyors, grinding & milling, and machine tools.
12
Even though motor systems are used widely throughout
industry and account for around half of industrial electricity
use, they are not usually the direct focus of industrial energy
saving initiatives. One suggested reason is that ‘each industry
tends to focus their energy management efforts on the
main industrial process in which they specialise, rather than
supporting systems, such as motor systems that are not
unique to their industry’. [IEA 2007]
The very high level of electricity consumption in electric
motor systems has meant that in recent years governments
have begun to consider ways in which the consumption of
these systems can be reduced [IEA 2006 & 2007; UKMTP
2006 & 2007; Brunner 2007]. An analysis by the IEA suggests
that worldwide there is potential to improve the energy
efficiency of industrial electric motor systems by around 20
to 25% [IEA 2006]. If this level of energy savings could be
fully realised by 2020, this suggests a total potential saving
of 10.6 to 13.3 Mt CO2-e per annum in Australia, and 0.8
to 1.1 Mt CO2-e per annum in New Zealand. In addition to
significant greenhouse abatement, this would also generate
significant economic benefits through reduced electricity
costs to business: $1,121 to $1,400 million per annum in
Australia; and $224 to $281 million per annum in New
Zealand, based on current energy prices. In the context
of an emissions trading scheme, these energy and cost
savings would assist companies to reduce the impact of a
carbon price on their operations, and could lead to overall
lower abatement costs, rather than reducing total national
greenhouse emissions.
Motor systems, particularly for pumping and ventilation,
are also used extensively in the commercial sector. Thus,
measures to increase the energy efficiency of industrial
motor systems are likely to also have spin-off benefits in the
commercial sector.
3.2 Approaches to Improving System Efficiency
Energy efficiency is generally quite high in electric motors but
often quite low in electric motor systems. The IEA estimates
that the average motor system has an overall efficiency of
only 45% [IEA 2006 & 2007]. An example of a motor system
used for pumping is shown in Figure 9. In this case the overall
system efficiency is only 31%, with significant energy losses
occurring in the pump, throttle and distribution system
(pipe).
A range of approaches can be used to increase the overall
efficiency of motor driven systems. Key options include [IEA
2007]:
• Use
of high efficiency electric motors;
• Correct sizing of the motor to match load requirements
– many motors are oversized, resulting in reduced
efficiency and lower power factors;
• Use of variable speed drives (VSD) where there is a
variable load, to match motor speed and torque to load
requirements;
• Use of high efficiency couplings between the motor and
driven machine;
• Use of a high efficiency driven machine (eg, pump, fan,
compressor);
• Optimisation of the downstream distribution system, and
elimination of losses and leaks;
• Use
of high efficiency end-use equipment;
• Proper
maintenance and repair.
An example of an optimised pump system is shown in Figure
10. Overall system efficiency has been increased to 72% by
increasing the efficiency of individual system components
and replacing an inefficient throttle control with a VSD. In
this example, the high efficiency motor is responsible for
around 4% of the overall improvement in system efficiency
and the high efficiency pump is responsible for around 12%.
The other measures are responsible for around 84% of the
increased system efficiency.
Figure 9: Schematic of a Standard Pumping Scheme [IEA 2007]
Figure 10: Schematic of an Energy Efficient Pumping Scheme [IEA 2007]
13
3.3 Improving the Efficiency of Components &
Systems
practice and incentive programs14. This might include
information and training, best practice design and
operation guides, and optimisation tools for new and
existing systems. Such programs could be supported by
incentives such as rebates, white certificates15 and tax
incentives. The key challenge with best practice programs
is to motivate enough of the target user base to engage
and so ultimately realise the potential savings.
Figure 11: Impact of System Boundary on Savings Potential
[Brunner 2007]
Improving motor efficiency
Australia and New Zealand are amongst the leading nations
in addressing the energy efficiency of electric motors.
Mandatory MEPS targeting the three-phase induction
motors which are used to drive most industrial electric
motor systems were first introduced in October 2001
and subsequently made more stringent in April 2006. The
Australian and New Zealand MEPS levels are now equivalent
to the most stringent in the world – IEC efficiency class IE2
– although the United States is committed to implementing
more stringent levels from 2011, as show in Figure 12.
Australia and New Zealand are considering the introduction
of more stringent motor MEPS.
With electric motor systems the size of the potential energy
savings which can be achieved are very much a function
of the boundary which is used to define the ‘system’ (see
Figure 11). The system boundary is also relevant to the type
of government intervention which could be used to drive
improvements to the overall system efficiency [Brunner
2007]:
• Electric motor - MEPS and mandatory labelling programs
may be useful to drive increased motor efficiency, but
will only capture a small percentage of the overall system
savings potential;
• Core motor system - A combination of MEPS – either
for individual system components or for the ‘core motor
system’ – coupled with performance rating schemes
(mandatory or voluntary) and/or system optimisation
tools could drive increases in energy efficiency of ‘core
motor systems’, and capture a moderate amount of
the overall system savings. Energy rating schemes and
optimisation tools are likely to be most useful where
they can provide information on all of the components
available in the market. This might be achieved through
voluntary agreements with industry associations that have
good coverage of the market and are cooperative with
government; otherwise, a regulatory regime (eg MEPS
or mandatory rating and information disclosure) that
requires disclosure of performance information could be
used in a publicly accessible tool;
• Total motor system - Capturing the much larger
potential savings available through optimisation of the
overall electric motor system is likely to be difficult
through a regulatory regime, and is the domain of best
14
Improving the efficiency of the ‘core motor
system’
Internationally, the most significant progress that has been
made on increasing the energy efficiency of electric motors
has been through regulated MEPS. While this has significantly
increased the energy efficiency of new motors sold in those
countries with regulations, the potential improvement in
motor system efficiency remains largely untapped [IEA
2007]. Only a few countries have implemented minimum
performance standards for system components such as
pumps, fans, compressors and chillers (see Table 2). There
is not yet an international consensus on the acceptability of
the test standards used to assess energy performance or the
adequacy of the performance information for these products
[UKMTP 2007].
A number of international efforts are underway to address
the energy efficiency of the ‘core motor system’.
The new IEA Implementing Agreement on Efficient
Electrical-End Use Equipment16 includes the Electric Motor
14
Although regulatory regimes can be used to encourage industry to
adopt best practice approaches. For example, Australia’s Energy Efficiency
Opportunities program, mandatory for large energy users, requires
businesses to undertake assessments and publicly disclose the results
of the assessment. Victoria and Queensland have similar state-based
programs in place, with the Victorian program requiring companies to
implement opportunities with a payback of three-years or less.
15
White Certificates are tradeable energy efficiency certificates which
represent a defined amount of lifetime energy or greenhouse savings
achieved from energy efficiency measures. The Victorian Energy Efficiency
Target (VEET) Scheme is an example of such a scheme. See: http://www.
esc.vic.gov.au/public/VEET/
16
See http://www.iea-4e.org/ for general information and http:// www.
motorsystems.org for information relating specifically to the Motor
Systems Annex. Australia, Austria, Denmark, the Netherlands, Switzerland
and the United Kingdom are currently participating in this Annex..
Figure 12: International Implementation of Electric Motor MEPS [Brunner, 2007]
Systems Annex (EMSA). This aims to promote the energy
efficiency of poly-phase electric AC motors and motor
systems in applications such as pumps, fans, compressors
and mechanical drives used in industry, infrastructure and
large buildings. Variable speed drives and permanent magnet
motors are also included in the scope of this work.
Table 2: International Implementation of MEPS for Core Motor
System Components (Brunner 2007)
Country
Australia
Brazil
Canada
China
3-Phase
Pump Fan
Motors
X
X
X
X
X
Chinese Taipei
Costa Rica
European Union
Israel
X
X
Malaysia
Mexico
X
X
New Zealand
Philippines
Republic of Korea
USA
Total
Chillers Compressor
X
X
X
X
X
X
X
The European Union’s Framework Directive on the EcoDesign of Energy Using Products18 adopted in 2005, allows
the European Commission to set performance requirements
for products sold in the European Market [UKMTP 2007].
Under this Directive, work is progressing on four product
categories relevant to motor systems:
• Electric
motors 1-150kW;
• Water pumps (in commercial buildings, drinking water
pumping, food industry, agriculture);
• Circulators
in buildings;
X
• Ventilation
fans (non-residential buildings).
Analysis and stakeholder consultation on these products was
undertaken from 2006, and final reports were published in
April 200819. This work holds out the possibility of developing
X
X
X
11
Standards for Energy Efficiency of Electric Motor Systems
(SEEEM)17 was an international community of practice
involving a range of government, industry, utility, academic
and NGO organisations. The initial focus of SEEM was on
accelerating the harmonisation of test standards and MEPS
and labelling for electric motors, standards for motors with
VSD and standards for small motors. The work of SEEEM
was merged with EMSA in 2009.
3
2
2
1
17
See http://www.seeem.org/background.php
18
See: http://ec.europa.eu/energy/demand/legislation/eco_design_en.htm
for general information and http://www.ecomotors.org/ for information
on activities related to motor systems
19
See: http://www.ecomotors.org/documents.htm#2
15
test standards and performance levels for pumps and fans
which have a wider level of international acceptance.
Australian and New Zealand programs introducing energy
efficiency best practices to industry include:
The Asia-Pacific Partnership on Clean Development and
Climate (APP) brings together Australia, Canada, China, India,
Japan, Republic of Korea and the United States of America
to address the challenges of climate change, energy security
and air pollution. In January 2006 the Australian Government
committed $100 million over five years for the partnership20.
Under APP, the Buildings and Appliances Taskforce is working
on the harmonisation of test procedures for a range of
products including electric motors and electric motor systems.
• The Australian Government’s Energy Efficiency
Opportunities program - requires Australia’s largest
energy using corporate groups to undertake energy
efficiency assessments, and to publicly disclose the
results and measures they are taking to reduce energy
consumption24;
Improving the overall efficiency of electric motor
systems
• State mandatory schemes such as the Victorian
Environment and Resource Efficiency Plans and the
NSW Energy Saving Action Plans26 - require large energy
users to undertake audits, prepare energy saving plans
and, in the case of Victoria, implement energy efficiency
measures up to a 3 year payback;
While increasing the energy efficiency of the ‘core motor
system’ has an important role to play in increasing the
efficiency of motor systems, the presence of energy efficient
components provides no assurance that the overall motor
system will be energy efficient. Misapplication of energy
efficient equipment, such as variable speed drives, is common
and the benefits from a high efficiency motor will not be fully
realised if the motor is running well below capacity. As noted
by the IEA, this will ultimately require changes to institutional
culture within industry [IEA 2007]:
Industrial energy efficiency policy and programmes should
aim to change traditional operational practices and to
integrate best practices into the institutional culture of
industrial companies. Effective policies to promote industrial
system optimisation include energy management standards
and related training, system assessment protocols, capacity
building of system experts through specialised training
initiatives, training to raise awareness of plant engineers
and managers, tools for assessment and documentation
of system energy efficiency, case studies and technical
materials.
• The motor bounty scheme operated by New Zealand’s
Electricity Commission provides an incentive to industry
to remove existing inefficient motors and replace them
with new MEPS compliant motors25;
• The Motor Solutions Online web-site, hosted by the
Department of Climate Change ad Energy Efficiency,
provides information and advice on optimising motor
systems27;
• The Energy Efficiency Exchange web site has been
established as part of the National Framework for Energy
Efficiency, to provide a clearing house of information
on energy efficiency best practice, including access to
information about motor system optimisation28;
• Sustainability Victoria’s resourceSmart Business Program
has released a suite of best practice guides, including
guides covering electric motor systems.29
Internationally, there are a number of examples of successful
programs that are working to achieve a best practice culture
within industry [IEA 2007]:
• The US BestPractices program, under the Department
of Energy’s Industrial Technologies Program, works with
industry on energy management practices in industrial
plants21;
• The Canadian Industry Program for Energy Conservation,
provides technical assistance to manufacturing and mining
companies on energy efficiency22;
• The Motor Challenge Programme run by the European
Commission offers technical assistance to companies
seeking to improve the energy efficiency of their electric
motor systems23.
24
See: http://www.ret.gov.au/energy/efficiency/eeo/pages/default.aspx
25
http://www.electricitycommission.govt.nz/opdev/elecefficiency/programmes/industrial/electric-motors/index.
html/?searchterm=motor%20bounty
26
See: http://www.epa.vic.gov.au/bus/erep/default.asp and http://www.deus.
nsw.gov.au/energy/Energy%20Savings%20Action%20Plans/Energy%20
Savings%20Action%20Plans.asp
20
See: http://www.ap6.gov.au/
27
See: http://www.climatechange.gov.au/what-you-need-to-know/
appliances-and-equipment/electric-motors.aspx
21
See: http://www1.eere.energy.gov/industry/bestpractices/
22
28
23
29
See: http://www.oee.nrcan.gc.ca/industrial/cipec.cfm
See: http://re.jrc.ec.europa.eu/energyefficiency/motorchallenge/index.htm
16
See: http://www.ret.gov.au/energy/efficiency/exchange/Pages/default.aspx
See: http://www.resourcesmart.vic.gov.au/for_businesses_2101.html
4 Pumps
Pumps are used widely throughout industry to transfer
liquids for processing, to provide cooling and lubrication,
and to power hydraulic systems. Pumps are also used in
the commercial sector to pump water as part of heating,
ventilation, and air-conditioning (HVAC) systems, and in
the water supply and treatment sector to pump water and
sewerage [US DoE 2006].
No data is currently available on the installed stock of pumps
used for industrial applications in Australia and New Zealand.
Industry estimates suggest that in Australia the market for
pumping equipment exceeds $1,000 million annually, with
approximately 60% of the market accounted for by locally
manufactured products. There are some fifty companies
manufacturing pumps in Australia and several hundred who
import, resell or supply products. It is estimated that local
manufacturers of pumps employ more than 2,500 people,
and around the same number are employed by agents,
distributors and other businesses supplying product and
services to the pump market.30
Figure 13a: Imports and Exports of Pumps - Australia31
The Australian Bureau of Statistics collects data on the
import and export of pumps into and out of Australia.
Data on the value of local production is also collected,
although pumps and pumping machinery are combined with
air compressors. Data on Australian imports and exports
between 1999/00 and 2006/07 is presented in Figure 13a,
and data on the value of imports, exports and estimated
local manufacture over the same period is presented in
Figure 13b.
Figure 13b: Value of Imports, Exports & Local Production of Pumps
- Australia32
Total Imports
Total Exports
Local Manufacture
$450
$400
$350
$300
Value ($M)
4.1 Pump Market & Impacts
$250
$200
$150
Total Imports
$100
Total Exports
$50
4,000,000
$0
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
3,500,000
Number of Units
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Over the period 1999/00 to 2006/07 pump imports
averaged 3.15 million units per annum with an average
customs value of $299 million. During this period exports
averaged 329,000 units per year for an average customs
value of $81 million. While the value of both imports and
exports increased over this period, the estimated value of
local manufacture remained relatively steady and averaged
$373 million per year. Taken as a whole, the data on imports
exports and local manufacture suggest that the value of
Australian sales of pumps has remained relatively constant
and averages around $606 million per year. This is consistent
with industry estimates once tariffs, retail mark-ups and the
sale of pump parts are taken into account.
30
Information from Pump Industry Australia website http://www.pumps.
asn.au/industry.htm
31
Exports & Imports - Australian Bureau of Statistics, International
Merchandise Trade: Reciprocating positive displacement pumps
(excl. those for internal combustion piston engines but incl. those for
swimming pools); Rotary positive displacement pumps (excl. those for
internal combustion piston engines but incl. those for swimming pools);
Centrifugal pumps, nes for liquids (incl. pumps for swimming pools);
Pumps for liquids, whether or not fitted with a measuring device, nes
(incl. pumps for swimming pools).
32
Import & export data from Exports & Imports - Australian Bureau
of Statistics, International Merchandise Trade, as for Figure 13a. Local
manufacture data from: Manufacturing production: Estimated value of
sales by selected Commodities Produced (MIOCC) Australia, Pumps &
Pumping machinery - It has been assumed that pumps account for 85%
of total.
17
Figure 14a: Imports & Exports of Pumps – New Zealand33
Total Imports
Total Exports
800,000
Number of Units
800,000
800,000
600,000
400,000
200,000
0
2000
2001
2002
2003
2004
2005
2006
2007
One industry commentator estimates the size of the New
Zealand pump market, including pump parts, as NZ$80
million [AIM 2005]. Statistics New Zealand publishes data on
the import and export of pumps, but does not publish data
on the value of local manufacture. Data on New Zealand
imports and exports between 2000 and 2007 is presented
in Figure 14a, and data on the value of imports and exports
over the same period is presented in Figure 14b.
Over the period 2000 to 2007 pump imports averaged 0.77
million units per annum with an average customs value of
NZ$67.2 million. During this period exports averaged 56,000
units per year for an average customs value of NZ$5.2
million.
Analysis of energy end-use by segment using EnergyConsult’s
industrial model suggests that in 2006 in Australia pumps
accounted for 47.2 PJ of total electricity consumption
(12.2%) and 13.6 Mt CO2-e of greenhouse emissions in the
industrial sector, while in New Zealand it is estimated that
pumps accounted for 7.9 PJ (13.4%) and 0.5 Mt CO2-e of
greenhouse emissions. The key segments with the largest use
of pump energy are shown in Figure 15. In Australia, pumping
energy consumption is highest in the mining, wood, paper
and printing, chemical products and other manufacturing35
sectors. In New Zealand, pumping energy consumption is
highest in the agriculture, wood, paper and printing, other
manufacturing and chemical sectors.
In both Australia and New Zealand pumps are the most
significant single contributor to energy consumed by
industrial motor systems: in Australia they are estimated to
be responsible for 25.3% of total electricity consumption
from industrial motor systems and in New Zealand 24.2%
[EnergyConsult 2008d].
Figure 14b: Value of Imports & Exports of Pumps – New Zealand34
Total Imports
Total Exports
$90
$80
$70
Value ($M)
$60
$50
$40
$30
$20
$10
$0
2000
2001
2002
2003
2004
2005
2006
2007
33
Import & export data from Statistics New Zealand Infoshare website
for: 841350 - Pumps; reciprocating positive displacement pumps,
n.e.c. in heading no. 8413, for liquids; 841360 - Pumps; rotary positive
displacement pumps, n.e.c. in heading no. 8413, for liquids; 841370 Pumps; centrifugal, n.e.c. in heading no. 8413, for liquids; 841381 - Pumps
and liquid elevators; n.e.c. in heading no. 8413
34
Data sourced from Statistics New Zealand, as for Figure 14a.
18
35
Other manufacturing includes: Food, beverages & Tobacco; Textile,
clothing & footwear; Other metal products; Machinery & equipment; and,
Other manufacturing
Figure 15: Estimated Energy End Use by Pumps 2006 [EnergyConsult 2008d]
30
AUSTRALIA
Petajoules (PJ)
25
20
15
10
5
0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
Commercial
Mining
Agriculture
Commercial
Mining
Agriculture
2.5
NEW ZEALAND
Petajoules (PJ)
2.0
1.5
1.0
0.5
0.0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
4.2 Pump Technology
Basic non-ferrous
Other
metals
manufacturing &
construction
Figure 16: Main Types of Pumps
There are a large number of different types of pumps
available on the market (See Figure 16), but there are
two main categories of pump, centrifugal (also called
rotodynamic) and positive displacement pumps36
characterised by the way in which they impart energy to the
fluid being pumped. Positive displacement pumps pressurize
the fluid by squeezing it with each piston stroke or shaft
rotation. Centrifugal pumps work by adding kinetic energy
to a fluid using a spinning impeller. This fluid then enters the
diffuser section of the pump where it slows and the kinetic
energy is converted into pressure [US DoE 2006].
While for many applications either a positive displacement
or a centrifugal pump could be used, centrifugal pumps are
more common because they are simple and safe to operate,
require minimal and fairly straightforward maintenance, have
characteristically long operating lives, and can operate under
a broad range of conditions [US DoE 2006].
Centrifugal pumps are the largest group in terms of sales
and type. Data from the UK shows that centrifugal pumps
have a 71% market share, while rotary pumps have 21% and
reciprocating pumps 8% [UKMTP 2007]. Import data from
the Australian Bureau of Statistics and Statistics New Zealand
suggests that centrifugal pumps also dominate the local
markets.
36
http://www.pumps.asn.au/industry.htm
Centrifugal pumps are used for domestic applications such as
pressure pumps and swimming pool pumps. Applications in
mining, manufacturing and agriculture include high pressure
process pumps for oil refineries, slurry pumps for abrasive
solids handling, large pumps for water and wastewater
treatment, and borehole pumps for ground-water pumping37.
Centrifugal pumps have a variable flow/pressure relationship
– the flow rate is lower when pumping against a high system
pressure (or head) than when pumping against a low system
pressure. Understanding this relationship is essential to
properly sizing a pump and designing a system that performs
efficiently [US DoE 2006].
37
http://www.pumps.asn.au/industry.htm
19
In contrast, positive displacement pumps have a fixed
displacement volume. This means that the flow rate of the
pumped fluid is directly proportional to the pump speed,
and the system pressure depends on the piping system’s
resistance to this flow. One disadvantage of positive
displacement pumps is that they can potentially overpressurise the piping system and related components, and
so require more system safeguards, such as relief valves, to
protect both the piping system and the motor. However, the
characteristics of positive displacement pumps give them
advantages in applications where the [US DoE 2006]:
• working
fluid is viscous;
• system
requires high-pressure, low-flow performance;
• pump
must be self-priming; and
• working
fluid must not experience high shear forces
Rotary Positive Displacement Pumps are usually used for
pumping viscous fluids. Applications include pumps used for
oil transportation and power transmission, and progressing
cavity pumps for manufacturing processes and for handling
water and slurries. Reciprocating Positive Displacement
Pumps are used for metering precise doses of fluids,
often chemicals requiring corrosive-resistant materials of
construction38.
4.3 Approaches to improving Energy Efficiency
Pump Energy Efficiency
The energy efficiency of a pump is the ratio of the power
output of the pump – related to the head, flow rate
and specific gravity of the fluid being pumped – and the
mechanical power input. Pump operation is defined by a set
of characteristic curves (see Figure 17), which relate head,
power and efficiency to the flow rate. For most efficient
operation the design of the pump should be matched to the
pumping application such that the required head and flow
rate match the maximum efficiency (or ‘Best Efficiency Point’)
on the efficiency curve [EU 2001].
Figure 17: Characteristics of a Typical Centrifugal Pump [EU 2001]
The dependence of pump efficiency on both head and flow
rate makes comparing efficiencies more complicated than for
many other types of electrical equipment. Pump efficiency
is usually determined at the ‘Best Efficiency Point’ but the
operational efficiency of the pump might differ considerably
from this rated efficiency because [EU 2001]:
• The pump may spend much of its time operating at a
flow rate (or head) below its design duty, meaning that
the efficiency will be lower;
• The efficiency of the pump is likely to deteriorate over
time, so the actual efficiency of the pump will be less than
its rated efficiency when new.
Australia and New Zealand
Currently there are no mandatory energy efficiency
requirements for pumps sold in Australia and New Zealand.
Australian Standard AS 2417 – 2001: Rotodynamic pumps:
Hydraulic performance acceptance tests – Grade 1 & 2
specifies hydraulic performance tests for acceptance of
rotodynamic pumps (centrifugal, mixed flow and axial
pumps), the main types of pumps used in industrial
applications. The Standard is identical with ISO 9906:1999.
It is applicable to pumps of any size and to any pumped
liquids behaving as clean cold water, and contains two grades
of accuracy of measurement - grade 1 and grade 2. The
standard includes methods to measure the pump and driver
power input, the pump output, the pump efficiency and the
overall efficiency. It may be possible to use this standard as
the basis of a future regulatory program.
While there are currently no regulatory requirements for
pump efficiency in Australia and New Zealand, there are
a number of government programs to promote pump
efficiency:
• Sustainability Victoria has developed an Energy Efficiency
Best Practice Guide on Pumping Systems, as part of suite
of best practice guides for its ResourceSmart Business
program;
• The Energy Efficiency Exchange website, developed as
part of the National Framework for Energy Efficiency,
provides access to a range of fact sheets and best
practice manuals relating to pump systems produced by
both Australian and US government agencies39;
• The Motor Solutions Online website hosted by DCCEE
provides general best practice information on pump
systems40.
39
http://www.ret.gov.au/energy/efficiency/eex/technologies/motors_
pumps_fans/Pages/Motors,PumpsandFans.aspx
40
38
http://www.pumps.asn.au/industry.htm
20
http://www.climatechange.gov.au/what-you-need-to-know/appliancesand-equipment/electric-motors.aspx
International
Table 3: MEPS & Labelling for Pumps41
As shown in Table 3 below, China, Israel and Mexico are the
only countries which currently have mandatory standards for
pump efficiency, and Iran and Mexico are the only countries
which have mandatory labelling requirements, in this case
specifically for centrifugal pumps. Korea operates a voluntary
certification scheme for pumps. Voluntary labelling of pumps
is undertaken in the European Union for circulating pumps
and in Mexico for deep well, submersible and vertical
pumps; Mexico also has a voluntary endorsement label for
centrifugal pumps.
Mandatory standards for clear water Single Stage, MultiStage and Multi-Stage Well pumps came into effect in China
in December 2005. The methodology and requirements
are based on GBT13007-1991, which was devised by
Chinese pump manufacturers and used as the basis for
recommended efficiencies. However, as a result of lobbying
from manufacturers the 2005 efficiency levels are lower
than the original standard and are intended to eliminate
the worst 15% of pumps from the market. The standard
specifies mandatory minimum values of ‘Best Efficiency’. A
new standard has been proposed, and it is expected that
more stringent requirements – which would eliminate 90%
of current pumps on the market – will come into effect in
2010 [AEA 2008a].
Mandatory standards for axial and centrifugal pumps were
introduced into Israel in 2004, but no information is available
on the scope of these standards, the test standards used or
the efficiency requirements.
Iran has a mandatory labeling program for centrifugal
pumps which is administered by the Standards and Industrial
Research Organization of Iran. The label is based on the
European energy label design (although it is a mirror image
and has Persian script). No information is available on the
test standards, their scope or energy efficiency requirements.
The Korean Energy Management Corporation (KEMCO)
operates a voluntary certification scheme for pump
efficiency. This targets centrifugal water supply pumps (single
and multi-stage) with discharge branches from 25 to 200
mm bore. The scheme requires pumps to meet a minimum
‘Best Efficiency’ (designated the A efficiency) value, and to
maintain a certain lower minimum efficiency (designated
the B efficiency) for all flows within the specified range for a
pump’s discharge bore. This is intended to encourage broad
high efficiency curves. [ATA 2008a]
Mexico has a comprehensive mandatory MEPS and labeling
program covering centrifugal, deep well, submersible and
vertical pumps, implemented by the National Energy Savings
Commission. While there are different requirements for
different types of pumps, the Mexican program seems to
be based on ISO 3555 Class B Centrifugal, mixed flow and
axial pumps; Code for acceptance tests; Class B, which has
now been superseded and replaced by ISO 9906:1999
Rotodynamic pumps - Hydraulic performance acceptance tests Grades 1 and 2.
Country
MEPS
Labelling
Scheme
National Test
Standards
Axial pumps
Israel
Centrifugal pumps
China
Iran
Israel
Korea
Mandatory
-
Mandatory
Mexico
Mandatory
Mandatory
Voluntary
GBT13007
NOM-004ENER-2008
Voluntary
EN 1151: 2006
Mandatory
Voluntary
NOM-006ENER-1995
Mandatory
Voluntary
NOM-010ENER-2004
Mandatory
Voluntary
NOM-001ENER-2000
Mandatory
Mandatory
Voluntary
Circulating pumps
European Union
Deep well pumps
Mexico
Submersible pumps
Mexico
Vertical pumps
Mexico
The Mexican program does not seem to apply to any pumps
used in manufacturing applications, although some pumps
might be used in agricultural and mining applications (see
Table 4). The requirements for centrifugal pumps apply only
to pumps used for residential applications. The requirements
for ‘deep well’ pumps apply to vertical turbine pumps used
in deep agricultural wells; the requirements for ‘submersible’
pumps applies to submersible clear water pumps; the
requirements for ‘vertical pumps’ applies to vertical, external
motor, turbine pumps used to pump clean water. Mexico
also has the Sello FIDE, a voluntary energy efficiency
endorsement seal given by the Fideicomiso para el Ahorro
de Energia Electrica (FIDE) since mid-1995.
In March 2005 Europump, the European Association
of Pump Manufacturers, launched an energy efficiency
labelling scheme for circulating pumps used in residential
and commercial central heating applications42. The scheme
is based on an industry self-commitment to improve the
energy performance of these pumps through energy labelling
and applies to:
• Stand-alone circulators with integrated pumps and
motors;
• Wet
running centrifugal pumps;
• Pumps
sized up to 2.5 kW
41
Information from http://www.apec-esis.org/, (UKMTP, 2007b) & (AEA,
2008a)
42
http://www.europump.org/
21
Figure 18: Share of each efficiency class in the production of
participating companies [Europump 2007]
Table 4: MEPS & Labelling for Pumps - Mexico
Pump Type
Scope
Centrifugal
Clean-Water
Pumps and Motor
Pumps With a
Power Rating of
0.187 kW to 0.746
kW.
Deep Well
Submersible
Vertical
Electromechanical
vertical turbine
pumps with
external or
submersible motor
of 5.5 kW to 261
kW used in deep
agricultural wells.
Submersible clean
water pumps.
Vertical, external
motor, turbine
pumps used to
pump clean water
Energy Efficiency
Requirements
Rated Power
Min.
Efficiency
0.187 to 0.373
kW
45%
0.560 kW
50%
0.746 kW
55%
Rated Power
Min.
Efficiency
5.6 to 14.9 kW
52%
15.7 to 37.3 kW
56%
38.0 to 93.3 kW
60%
94.0 to 261 kW
64%
Pump Capacity
Min.
Efficiency
0.3 to 0.5 L/s
40%
0.5 to 2.0 L/s
49%
2.0 to 5.0 L/s
62%
5.0 to 10.0 L/s
69%
10.0 to 15.0 L/s
71%
15.0 to 25.0 L/s
73%
25.0 to 30.0 L/s
74%
30.0 to 60.0 L/s
77%
> 60.0 L/s
78%
No details available.
The pump label is based on the European energy rating
label with a scale from A (highest efficiency) to G (lowest
efficiency). It assumes an agreed range of duties against which
the circulating pumps are measured. There are currently
eight companies participating in Europump’s industry
commitment - estimated to account for 80% of the EU 27
circulator market – and in 2006 90.2% of these companies
labelled their circulating pumps. Market data from Europump
(see Figure 18) indicate that this program is having a
significant impact on the circulator pump market, with a
significant increase in the percentage of Class A and B pumps
manufactured since 2004, largely at the expense of Class D
pumps [Europump 2007].
In addition to the existing industry labeling scheme, work
is being undertaken in the European Union on mandatory
standards for pumps under the Framework Directive on the
Eco-Design of Energy-Using Products. Mandatory standards
have been proposed for both Circulating Pumps and Water
Pumps [AEA 2008a&b].
Circulating pumps
It is proposed that minimum standards be introduced in
Europe for stand alone circulating pumps (up to 2.5kW)
used in central heating applications, based largely on the
Europump voluntary labelling scheme. The proposed
minimum standard is a Class A energy efficiency rating, to be
introduced in 2012. This would be supported by a revised
labelling scheme to encourage the development of higher
efficiency pumps. The MEPS would be based on the existing
technical standard EN 1151-1:2006, although this will be
revised to allow measurement of circulator performance to
a tolerance that is adequate for a mandatory MEPS scheme.
The current standard has too large a tolerance on the
operating head, does not specify tolerances on equipment
used to measure flow, and does not provide specific
guidance on how efficiency should be determined [AEA
2008b].
Water Pumps
It is proposed that minimum standards be introduced in
Europe for Water Pumps used in commercial buildings,
drinking water, agricultural and food industry applications. The
types of pumps to be included are [AEA 2008a]:
• Single
stage close-coupled (end suction close-coupled);
• In–Line
end suction close-coupled pumps;
• Single
stage water (end suction own bearing);
• Submersible
multistage well pumps (4’ & 6’);
• Vertical
multistage water pumps.
22
It is recommended that the MEPS be implemented in a
number of stages from 2010, with the aim of removing the
worst 40% of pumps from the market by 2020 to achieve
savings of around 3.5% at little additional cost to the endconsumer. MEPS which aim to eliminate the worst 10% of
pumps from the market are proposed for 2010, and this
target would be lifted by 10% every 3 years to hit 40% in
2019. The MEPS would be supported by a defined high
efficiency standard [AEA 2008a].
In most applications, pumps spend much of their time
operating some way from their design (Best Efficiency)
point, and pump efficiency can drop off significantly below
the 50% duty point. To account for this a so-called ‘house of
efficiency’ scheme has been devised which sets minimum
efficiency criteria for 100% rated flow (Best Efficiency), and
slightly lower minimum efficiency criteria at 75% and 110%
of rated flow (see Figure 19 below). This is to prevent pumps
that perform very poorly when operated away from 100%
rated flow, from passing the simple (rated flow) efficiency
threshold, [AEA 2008a].
Energy Saving Options
Pumps are less than 100% efficient due to three main areas
of loss [CERF/IIEC 2002]:
1. Mechanical loss – losses produced by friction of the
bearing and impeller. This can be reduced by enlarging the
diameter of the impeller and through surface treatment.
3. Hydraulic loss - this is the most significant loss within
the pump, especially at low flow rates. It is affected by
the shape of the pump impeller, roughness of the pump
body and viscosity of the pumped fluid. The losses are
mainly generated at the impeller and the guide vane, and
surface treatment of these parts can increase efficiency.
Attention to the design of the flow channel can also
improve efficiency.
The efficiency of pumps can be improved through design
changes which reduce these areas of loss although, as with
other electric motor systems, the largest potential savings
come from overall system improvements. The UK Market
Transformation Program estimates total potential savings for
pumping systems of around 40%, broken down as follows
(UKMTP 2007b):
Selecting higher efficiency pump
3%
Selecting a better sized pump
4%
Better installation/maintenance
3%
Better system design
10%
Better system control
20%
The energy efficiency of the pumping system will also
be improved through the selection of a more efficient
motor drive. In Australia and New Zealand this is already
being driven to some extent by the MEPS for three phase
induction motors.
2. Volumetric Efficiency – this is related to the clearance of
the sealing gap.
Figure 19: Proposed EU method for assessing compliance for
water pumps [AEA 2008a]
Figure 20: Components of Pump Losses [CERF/IIEC 2002]
Disk Friction and Mechanical losses
Flow leakage loss at wear rings
Hydraulic losses
Useful (hydraulic) power
23
In Australia, the projected energy savings from pump MEPS is
2.3 PJ per annum (or 3.3% compared to BAU) after 10 years,
with additional savings of 3.7 PJ per annum (5.5%) delivered
by a best practice program, or a total energy saving of 6.0 PJ
per annum (8.9%). Estimated total greenhouse gas abatement
is 1.3 Mt CO2-e per annum after 10 years.
43
The modelling is based on a 10-year program from 2010 to 2020, to
give an indication of the energy savings which could be expected after a
10-year period. Actual savings would depend on when any measures are
introduced.
24
60
55
50
45
40
35
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
30
Figure 21b: Estimated Savings for Policies Targeting Pumps – New
Zealand
BAU
MEPS
BAU & MEPS
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
10.0
9.5
9.0
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
2008
EnergyConsult’s industrial energy model has been used to
estimate the potential savings from new energy efficient
pumps over a 10-year period43. It is assumed that an average
saving of 3.5% per pump can be achieved through MEPS, and
that a best practice program could achieve average savings
of 20% but is taken up by only 30% of the market over
this period. The resulting projected energy savings in both
Australia and New Zealand are shown in Figure 20.
65
2007
It is estimated that MEPS for pumps could drive costeffective average energy efficiency improvements in the
range of around 3% to 7% for each new pump installed.
In addition, a best practice program - based on equipment
selection and system optimisation tools - focussed on new
installations would be expected to achieve additional savings
in the range of 4% to 34% for each new pump installed. The
overall savings achieved would depend on the uptake of the
program by industrial consumers.
70
2006
Analysis undertaken by the UK Market Transformation
Programme [UKMTP 2007], suggests that price competition
in the pump market is strong and that systems are sold
based on price rather than life-cycle costs, which results in
low installed efficiencies. Further, they note that there are
no formal mechanisms to identify high efficiency pumps or
pumping systems which is also the case in Australia and New
Zealand.
BAU
MEPS
BAU & MEPS
Electricity Consumption (PJ/Yr)
The E3 Program has the potential to drive improvements to
the energy efficiency of new pumps through a combination
of measures. These include minimum standards to
remove the less efficient pumps from the market, and the
development of tools to support best practice programs to
help consumers optimise the energy efficiency of the overall
pumping system at time of installation or upgrade.
Figure 21a: Estimated Savings for Policies Targeting Pumps –
Australia
Energy Consumption (PJ/Yr)
4.4 Potential Savings from More Efficient
Pumps
In New Zealand, the projected energy savings from pump
MEPS is 0.32 PJ per annum (3.4%) after 10 years, with
additional savings of 0.53 PJ per annum (5.6%) delivered by a
best practice program, or a total energy saving of 0.86 PJ per
annum (9.0%). Estimated total greenhouse gas abatement is
95 Kt CO2-e per annum after 10 years44.
44
The slight differences in the % savings achieved by MEPS and best
practice programs in Australian and NZ can be explained by different
rates in the growth of the pump stock which are, in turn, related to
differences in industry structure and growth rates.
5Industrial Fans and Blowers
5.1 Fan Market & Impacts
Fans are rotary bladed machines which move air, although
a distinction is made between fans and air compressors
(which work at higher air pressures of greater than 350 kPa).
They are used widely in both industrial and commercial
applications, for ventilation, air circulation, blowing and drying.
Fans usually form part of a wider fan system which also
includes an electric motor and associated control system, a
drive system, duct- or pipe-work, filters and outlet diffusers,
flow controllers, and possibly a heat exchanger [US DoE
2003; FI 2008].
Over the period 1999/2000 to 2006/07 fan imports
averaged 2.96 million units per annum with an average
customs value of $79 million. During this period exports
averaged 146,000 units per year for an average customs
value of $10 million. The estimated value of local manufacture
averaged $140 million per year. Taken as a whole, the data on
imports exports and local manufacture suggest that the value
of Australian sales of fans is around $208 million per year.
Figure 22b: Value of Imports, Exports & Local Production of Fans Australia46
Total Imports
No data is currently available on the installed stock or
sales of fans and blowers used for industrial applications in
Australia and New Zealand.
Total Exports
Local Manufacture
$160
$140
$120
Value ($M)
The Australian Bureau of Statistics collects data on the
import and export of fans into and out of Australia, as well as
data on the value of local production of ‘industrial fans’. The
types of fans used in industrial applications fall under the ‘fan
nes’ category, although this category is likely to pick up fans
used for some other applications. Data on Australian imports
and exports between 1999/00 and 2006/07 is presented
in Figure 22a, and data on the value of imports, exports
and estimated local manufacture over the same period is
presented in Figure 22b.
$180
$100
$80
$60
$40
$20
Figure 22a: Imports and Exports of Fans - Australia45
$0
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Total Imports
Total Exports
3,500,000
Statistics New Zealand publishes data on the import and
export of fans, but does not publish data on the value of
local manufacture. Data on the value of imports and exports
of fans to and from New Zealand over the period 2000 to
2007 is presented in Figure 23. Over the period 2000 to
2007 the average customs value of fan imports averaged
NZ$25.7 million, and of fan exports averaged NZ$0.1 million
per year.
Number of Units
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2006/07
2005/06
2004/05
2003/04
2002/03
2001/02
2000/01
1990/00
0
46
45
Exports & Imports - Australian Bureau of Statistics, International
Merchandise Trade: 841459 Fans nes.
Import & export data from Exports & Imports - Australian Bureau
of Statistics, International Merchandise Trade, as for Figure 21a. Local
manufacture data from: Manufacturing production: Estimated value
of sales by selected Commodities Produced (MIOCC) Australia, for
‘Industrial Fans’.
25
Analysis of energy end-use by segment using EnergyConsult’s
industrial model suggests that in 2006 in Australia industrial
fans accounted for 18.8 PJ of total electricity consumption
(4.9%) and 5.4 Mt CO2-e of greenhouse emissions in the
industrial sector. In New Zealand in 2006 it is estimated
that fans accounted for 4.3 PJ (7.2%) and 0.3 Mt CO2-e of
greenhouse emissions [EnergyConsult 2008d].
Figure 23: Value of Imports & Exports of Fans – New Zealand47
Total Imports
Total Exports
$35
$30
The key segments with the largest use of fan energy are
shown in Figure 24. In both Australia and New Zealand
energy consumption by non-domestic fans is estimated to be
highest in the commercial sector. For industrial applications
fan energy use is estimated to be highest in the non-metallic
mineral products, iron and steel, mining, and wood, paper
and printing sectors in Australia, and in the wood, paper
and printing, other manufacturing48, iron and steel, and basic
non-ferrous metals sectors in New Zealand [Energy Consult
2008d].
Value ($M)
$25
$20
$15
$10
$5
$0
2000
2001
2002
2003
2004
2005
2006
2007
In both Australia and New Zealand fans are estimated to be
the second largest single contributor to energy consumed
Figure 24: Estimated Energy End Use by Fans 2006 [EnergyConsult 2008d]
25
AUSTRALIA
Petajoules (PJ)
20
15
10
5
0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
4
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
Commercial
Mining
Agriculture
NEW ZEALAND
Petajoules (PJ)
3
2
1
0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
48
47
Import & export data from Statistics New Zealand Infoshare website for:
8414590900 - Fans; n.e.c. in item no. 8414.5
26
Commercial
Mining
Agriculture
Other manufacturing includes: Food, beverages and tobacco; Clothing
and footwear; Other metal products; Machinery and equipment; and
Other manufacturing.
by industrial motor systems: in Australia they are estimated
to be responsible for 10.1% of total electricity consumption
from industrial motor systems, and in New Zealand for
13.1% of industrial motor system electricity consumption
[EnergyConsult 2008d].
In both Australia and New Zealand the energy consumption
of fans is more significant in the commercial sector than it is
in the industrial sector. In Australia, in 2006 fans are estimated
to have consumed 23.8 PJ (13.4%) of electricity in the
commercial sector, producing 6.7 Mt CO2-e. In New Zealand,
the corresponding figures are 3.9 PJ (13.4%) of electricity in
the commercial sector and 0.24 Mt CO2-e [EnergyConsult
2008d].
and compact, and are commonly used in ‘clean air,’ lowpressure, high-volume applications. They are frequently
used in exhaust applications where the airborne
particulate size is small, including dust streams, smoke
and steam. Axial fans tend to have higher rotational
speeds than centrifugal fans with the same capacity, and
so are generally noisier. They have a severe stall region
that makes them unsuitable for applications with widely
varying conditions [US DoE 2003].
Figure 26: Tubeaxial Fan [US DoE 2003]
5.2 Fan Technology
There are two main types of fans: centrifugal and axial, while
mixed flow fans are a combination of both. The different
types of fan are characterized by the path of the airflow
through the fan [US DoE 2003].
• Centrifugal fans are the most common type of industrial
fan. They consist of an impeller with multiple blades
rotating within a scroll or spiral shaped casing. The
rotating impeller draws air in through a central inlet
and pushes the air outwards into the volute shaped
casing and out through the air discharge. Centrifugal
fans can have several types of blade shapes, including
forward curved, radial-blade, radial-tip, backward-inclined,
backward-curved, and airfoil. They are sturdy, quiet,
reliable and capable of operating over a wide range of
conditions. They can generate high pressures with high
efficiencies and can be constructed to withstand harsh
operating conditions, so they are frequently used in
applications with ‘dirty’ airstreams, in material handling
applications, and in applications with higher temperatures
[CERF/IIEC 2002; US DoE 2003].
Figure 25: Centrifugal Fan with Forward-Curved Blades [US DoE
2003]
• Mixed flow fans are a combination of centrifugal and
axial (propeller) fan. They combine the ability of the axial
fans to move large volumes of air and the centrifugal fan’s
ability to operate at higher pressures [CERF/IIEC 2002].
A range of factors determine which type of fan is best suited
to a particular application, including the pressure, airflow
rate, efficiency, space constraints, noise generation, drive
configuration, temperature range, variations in operating
conditions, tolerance to corrosive or particulate-laden
airstreams and cost [US DoE 2003].
A distinction is often also made between fans and blowers.
A fan generally has a working pressure is below 34 kPa while
blowers generally operate at working pressures higher than
34 kPa but less than 350 kPa. [CERF/IIEC 2002].
5.3 Approaches to Improving Energy Efficiency
From a component perspective, the main losses which occur
in the ‘fan wheel’ relate to mechanical losses, clearance and
aerodynamic losses [CERF/IIEC 2002]. Significant increases in
fan efficiency can be achieved by reducing the aerodynamic
losses through improvements to the design of the impeller
or blade, such as aerofoil bladed design (curved and twisted
profiles instead of flat sheet metal blades) and additional
features such as winglets as the end of the blade to reduce
tip losses. Computational Fluid Dynamics allows optimisation
of impeller or blade design, but is relatively expensive. [FI
2008]
• Axial fans use rotating propeller blades to generate
aerodynamic lift which pressurises the air and creates
and air-stream parallel to the axis of the fan. They are
available in a number of different types including propeller
(the simplest), tubeaxial and vaneaxial. Axial fans are light
Taking a wider perspective, the efficiency of industrial fans
can be increased through the use of more efficient motors,
and more efficient transmissions systems where the motor
isn’t directly coupled to the fan shaft. In Australia and New
Zealand, the motor MEPS will therefore already be helping to
drive improvements to the efficiency of fan systems where a
27
three-phase induction motor is used as the motor drive.
As with all motor systems, the largest potential savings can
be achieved through optimising the overall fan system, with
savings of up to 30% possible. Key areas where savings can
be achieved include [FI 2008; UKMTP 2006; IEA 2007; US
DoE 2003]:
• better
selection of fans to suite the application;
• replacing
or modifying over-sized fans;
• using variable speed drives, variable inlet vanes or multiple
fans rather than dampers where the application has a
variable flow rate;
• fixing
leaks and damaged seals;
• correcting poor airflow conditions at fan inlet and outlet;
and,
• reduce
air flow resistance in the ductwork or piping.
Fan Energy Efficiency
The energy efficiency of a fan is the ratio of the power
imparted to the air stream by the fan to the power input to
the fan. The power (W) of the air stream is the product of
the total pressure (kPa) and the airflow rate (m3/s) [US DoE
2003]:
Energy efficiency = Airflow rate (m3/s) x Total pressure (kPa)
Input Power (W)
A slightly different way of looking at fan energy efficiency is
static efficiency, which uses static pressure instead of total
pressure in the equation shown above. When assessing fan
performance, it is important to know which type of energy
efficiency is being referred to [US DoE 2003].
The scope of the fan efficiency metric could simply be
the fan (or ‘fan wheel’), or could cover the motor drive,
transmission system and fan. The first approach is more
relevant for centrifugal fans, where the motor drive is usually
separate from the fan. Some axial fans have an integrated
fan/motor, and in this case it might be more appropriate to
define the energy efficiency by the ratio of the power output
from the fan to the power input to the motor.
Fan power is proportional to the cube of the rotational
speed of the fan. Thus, significant energy savings can be
achieved if the fan is chosen so that it can adequately serve
the requirements of a particular application at a lower speed.
[US DoE 2003].
The performance of a fan is quite similar to the performance
of a pump. The operating characteristics of a fan are defined
by a performance curve which plots the developed pressure
and power required over the range of airflow rates the fan is
able to generate (see Figure 27 for an example).
28
Figure 27: Performance Curve for Centrifugal Fan with ForwardCurved Blades [US DoE 2003]
As with pumps, fans also have a ‘best efficiency point’ (BEP).
This is the point on the performance curve – at a specific
pressure and airflow rate – where the fan energy efficiency is
highest and it achieves its peak efficiency. Operating a fan at
or near to its BEP not only ensures energy efficient operation
but reduces wear and on-going maintenance requirements.
Operating a fan too far away from its BEP increases bearing
loads (and therefore wear and maintenance) and operating
noise [US DoE 2003; FI 2008].
Fan performance curves and typical peak efficiencies are
different for the different types of fans. Table 5 shows typical
peak efficiency values for different types of fans, based on
2005 European data [FI 2008].
Table 5: Typical Peak Efficiencies of Different Fan Types [FI 2008]
Fan type
Centrifugal
Axial
Fan total efficiency % (peak)
Aerofoil
88
Backward-curved
84
Backward-inclined
80
Foward-inclined
70
Van-axial
85
Tube-axial
75
Propellor
55
Mixed-flow
75
Tangential
25
It is important to note that the overall efficiency of a fan
system will be considerably less than the peak efficiency
of the stand-alone ‘fan wheel’. This is due to losses in
transmissions, motors and control, and due to resistance
and leakage losses in any ductwork or piping that the fan
is connected to. In addition to this, the fan may be selected
at a duty point other than that for its peak efficiency, in the
interest of cost, size, outlet velocity, noise etc [FI 2008].
Table 6: MEPS & Labelling for Industrial Fans51
Country
MEPS
Australia and New Zealand
Centrifugal blowers
Currently there are no mandatory energy efficiency
requirements for fans used in industrial or commercial
applications in Australia and New Zealand.
Republic of
Korea
Australian Standard AS ISO 5801-2004: Industrial fans Performance testing using standardized airways, sets out
methods for the determination of the performance of
industrial fans of all types, including the determination of
fan power and efficiency, except those designed solely for
air circulation, such as ceiling and table fans. It is identical
to, and reproduced from ISO 5801:1997. This standard has
been used in a number of international schemes for fan
efficiency, and could form the basis of any MEPS or labelling
scheme in Australia and New Zealand. While the title of the
standard refers to ‘industrial fans’, this is intended to cover all
non-residential fans, and so would cover fans used in both
commercial and industrial applications [FI 2008].
While there are currently no regulatory requirements for
fan efficiency in Australia and New Zealand, there are two
government programs to promote fan efficiency:
• The Energy Efficiency Exchange website, developed as
part of the National Framework for Energy Efficiency,
provides access to a range of fact sheets and best
practice manuals relating to fan systems produced by
both Australian and US government agencies49;
• The Motor Solutions Online website hosted by DCCEE
provides general best practice information on pump
systems50;
International
China is currently the only country which has a minimum
energy performance standard for fans, although some
countries have mandatory requirements on the energy
efficiency of ventilation systems as part of building
regulations. Six countries have voluntary labelling or
certification schemes which apply to either fans, or to
ventilation systems. A summary of the current status of
MEPS and labelling for fans used in industrial or commercial
applications is shown in Table 6.
49
http://www.ret.gov.au/energy/efficiency/eex/technologies/motors_
pumps_fans/Pages/Motors,PumpsandFans.aspx
50
http://www.environment.gov.au/settlements/energyefficiency/motors/
Labelling
Scheme
National Test
Standards
Voluntary
-
Industrial fans
China
Denmark
Voluntary
ISO 5081
ISO 5081
PNS 1481:1998
ISO 5081
ACMA
Denmark
Voluntary
ISO 5081
Republic of
Korea
Voluntary
-
Sweden
Voluntary system
-
Philipines
Mandatory
Voluntary
Mandatory being
considered
United States
Ventilation fans & systems
United
Kingdom
Mandatory system
-
China has minimum energy efficiency standards for industrial
fans, although Chinese manufacturers do not appear to be
particularly aware of the standard. The Chinese MEPS is
based on ISO 5801:1979 Industrial fans - Performance testing
using standardized airways and covers centrifugal fans, axial
fans, and centrifugal fans with external rotor motor for air
conditioning equipment. The MEPS are based on the ‘fan
wheel’, but do not make explicit whether the requirements
are for static or total efficiency. The MEPS levels, which
depend on specific speed and the pressure coefficient, are
shown in Table 7 [FI 2008].
Table 7: Chinese Fan MEPS Requirements
Fan type
MEPS requirements
Centrifugal
61% to 86%
Axial
66% to 78%
Centrifugal with external rotor motor
for air conditioning
43% to 59%
The Republic of Korea has a voluntary endorsement
labelling scheme for both centrifugal blowers and ventilation
fans. The scheme is operated by the Korean Energy
Management Corporation (KEMCO) who issue a high
efficiency certification label for products which meet certain
standards. Information on the test standards used and the
minimum performance requirements for certification is not
readily available.
Denmark has a voluntary endorsement labelling scheme
for fans called Spareventilator. Fans can be labelled using the
Spareventilator logo if they comply with specified minimum
energy efficiency requirements at their best efficiency
51
Information from http://www.apec-esis.org/
29
Figure 28: Total Fan Efficiency of Spareventilator Fans (not including motor) [FI 2008]
point52. The requirements depend on the type of fan and the
maximum shaft power, with higher efficiencies required at
higher shaft power. The program is based on the ISO 5801
test standard, and covers centrifugal (radial) and axial fans
with maximum shaft powers up to 1,000 kW. In addition to
this, the scheme also sets out requirements for fans used for
transporting dust and particles, and material, and for chamber
fans. Figure 28 shows the energy efficiency of fans meeting
the Spareventilator requirments in October 2007, against the
minimum efficiency requirements for different fan types [FI
2008].
The Philipines is considering introducing mandatory
labelling for industrial fans, based on the Philipines National
Standard PNS 1481:1998, which is based on the international
standard ISO 5081: Industrial fans - Performance testing using
standardized airways.
A number of European countries – Sweden and the United
Kingdom - have schemes which rate the energy efficiency of
ventilation systems using specific fan power (SFP), a measure
of the specific energy consumption of the fan per volume
of air delivered. Because this measure takes into account
the efficiency of different system components as well as
losses in the ductwork, it does not necessarily provide a
good indication of the efficiency of the fan used. The UK
has adopted SPF as the basis of ventilation system minimum
requirements in its new building regulations, and Germany is
also considering this approach [FI 2008].
The US Energy Star voluntary endorsement labelling program
covers a range of fans used in residential applications:
ceiling fans, kitchen range hoods, bathroom and utility fans,
and in-line fans [FI 2008]. However, the Air Movement &
Control Association International (ACMA)53 has established
a Certified Ratings Programme for Fans – Air Performance.
This scheme certifies fans which meet minimum
performance requirements set out by AMCA. The program
applies to fans within the scope of AMCA International for
which performance rating catalogues are published, and
there are special requirements for agricultural fans. Four
different rating methods can be applied, and the efficiency
can be either static or total. Ratings published in the ACMA
catalogue need to identify which method has been used and
the basis for the efficiency figure [FI 2008].
Work is currently being undertaken in the European Union
on mandatory standards for fans under the Framework
Directive on the Eco-Design of Energy-Using Products (EuP).
Mandatory MEPS have been proposed for ventilation fans
in non-residential buildings, although they could be applied
more generally to the specific categories of fan, rather than
tied to a specific fan application [FI 2008].
Based on analysis undertaken for the EuP, MEPS have been
proposed for eight categories of fan in the European Union,
where the input power of the electrical motor powering the
fan is in the range 125 W to 500 kW (see Table 8). However,
it is recommended that the following types of fans be
excluded from the requirements [FI 2008]:
• Smoke extraction fans not to be used for general
ventilation
• Fans
for solid material transport
52
For further information see: http://www.spareventilator.dk/tekst_hvader.
asp?m=2&lang=uk
30
53
For further information see: http://www.amca.org/
Table 8: Proposed European Fan MEPS Levels, 2010 [FI 2008]
• Fans
for transport of gases other than air
• Fans for emergency smoke extraction purposes, having
less than 25 operating hours per year
It was initially proposed that European MEPS be introduced
in 2010, and that in 2020 the MEPS requirements be made
more stringent by increasing the initial efficiency requirements
by 4%. For categories 6 (box fans) and 8 (cross flow fans) it
was proposed that there is an intermediate adjustment to
the MEPS levels in 2012 for low power fans [FI 2008]. Further
negotiations have been undertaken on the scope of the
regulations, test method and MEPS levels. The regulations are
now scheduled to commence in January 2012 and be made
more stringent for all fan types from January 201554.
The proposed European MEPS levels would be based on
either the static or total efficiency of a ‘fan’, which is taken
to comprise the motor drive and transmission as well as the
‘fan wheel’. The MEPS are based on the minimum allowable
best efficiency point and are related to the electrical power
input to the fan motor (see Figure 29). A new test standard
ISO12759 is being developed to measure the energy
efficiency of fans over a range of operational modes55, and
this will be used as the basis of the EU regulations [FI 2008].
The EuP study recommends against implementing a
labelling scheme for fans, but suggests that an Ecolabelling (or endorsement labelling) be used to identify
fans that are 25% better than the MEPS level established
for their fan category/power. It also recommends that
fan suppliers be required to disclose information on the
performance of their fans in a uniform way, and that this be
used as the basis of information in print, internet and CDs [FI
2008].
Figure 29: Proposed European MEPS for Fans, 2010 [FI 2008]
55
54
Personal communication from Hugh Faulkner, March 2010.
Personal communications from Hugh Faulkner & Frank Klinckenberg,
March 2010
31
5.4 Potential Savings from More Efficient Fans
The E3 Program has the potential to drive improvements in
the energy efficiency of new fans through a combination of
measures. These include minimum standards to remove the
less efficient fans from the market, endorsement labelling to
help consumers identify high efficiency fans, and best practice
programs to help consumers optimise the energy efficiency
of the overall fan system at time of installation or upgrade.
Analysis undertaken by the UK Market Transformation
Programme suggests that price competition in the fan market
is strong and that systems are sold on price rather than lifecycle costs, which results in low installed efficiencies [UKMTP
2007] Initial discussions with Australian and New Zealand
industry stakeholders suggest that very few customers
undertake a life-cycle costing when selecting a fan.
Based on the EuP analysis, it is estimated that MEPS for fans
could drive cost-effective energy efficiency improvements
in the range of 10% to 15% on average for each new fan
installed. In addition to this, a best practice program –
based on equipment selection and system optimisation
tools - focussed on new installations would be expected to
achieve additional savings in the range of 15% to 20% for
each new fan installed, although the overall savings achieved
would depend on the uptake of the program by industrial
consumers.
It’s important to note that any energy efficiency requirements
for industrial fans would also have an impact of fans used in
the commercial sector; in fact, based on the EnergyConsult
modelling, the impact in the commercial sector would be
expected to be somewhat larger than in the industrial sector.
EnergyConsult’s industrial energy model has been used
to develop an indicative estimate of the potential savings
over a 10-year period56 for a program targeting the energy
efficiency of new industrial fans. It is assumed that an average
Figure 30a: Estimated Savings for Policies Targeting Industrial
Fans – Australia
saving of 12% per new fan can be achieved through MEPS,
and that a best practice program could achieve average
savings of 20% but is taken up by only 30% of the market
over this period. The projected energy savings in both
Australia and New Zealand over a 10-year period are shown
in Figure 30 below.
In Australia, the projected energy savings in the industrial
sector from fan MEPS is 2.2 PJ per annum (or 9.4%
compared to BAU) after 10 years, with additional savings
of 1.0 PJ per annum (4.1%) delivered by a best practice
program, or a total energy saving of 2.2 PJ per annum
(13.6%). Estimated total greenhouse gas abatement is 0.67
Mt CO2-e per annum after 10 years [EnergyConsult 2008d].
In New Zealand, the projected energy savings in the
industrial sector from fan MEPS is 0.47 PJ per annum (9.7%)
after 10 years, with additional savings of 0.20 PJ per annum
(4.2%) delivered by a best practice program, or a total
energy saving of 0.67 PJ per annum (13.9%). Estimated total
greenhouse gas abatement is 75 kt CO2-e per annum after
10 years57 [EnergyConsult 2008d].
Savings in the commercial sector are even more significant.
In Australia, the projected energy savings in the commercial
sector from fan MEPS is 3.5 PJ per annum (or 9.8%
compared to BAU) after 10 years, with additional savings
of 1.5 PJ per annum (4.3%) delivered by a best practice
program, or a total energy saving of 5.0 PJ per annum
(14.1%). Estimated total greenhouse gas abatement is 1.1 Mt
CO2-e per annum after 10 years [EnergyConsult 2008d].
In New Zealand, the projected energy savings in the
commercial sector from fan MEPS is 0.49 PJ per annum
(9.5%) after 10 years, with additional savings of 0.21 PJ per
annum (4.1%) delivered by a best practice program, or a
total energy saving of 0.71 PJ per annum (13.6%). Estimated
total greenhouse gas abatement is 78 kt CO2-e per annum
after 10 years. [EnergyConsult 2008d]
Figure 30b: Estimated Savings for Policies Targeting Industrial
Fans – New Zealand
BAU
MEPS
BAU & MEPS
BAU
MEPS
BAU & MEPS
5.0
Energy Consumption (PJ/Yr)
Energy Consumption (PJ/Yr)
24
22
20
18
16
14
4.8
4.6
4.4
4.2
4.0
3.8
The modelling is based on a 10-year program from 2010 to 2020, to
give an indication of the energy savings which could be expected after a
10-year period. Actual savings would depend on when any measures are
introduced.
32
57
The slight differences in the % savings achieved by MEPS and best
practice programs in Australian and NZ can be explained by different
rates in the growth of the fan stock which are, in turn, related to
differences in industry structure and growth rates
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2006
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
56
2007
3.6
12
6 Air Compressors
6.1 Air Compressor Market & Impacts
Compressed air systems are widely used throughout the
industrial sector; it is estimated that between 65% to 75%
of all manufacturers use some form of compressed air
system. The compressed air can be used as an energy source
for certain manufacturing processes, including powering
pneumatic tools, packaging and automation equipment,
and conveyers. Many manufacturing industries also use
compressed air for combustion and process operations such
as oxidation, cryogenics, refrigeration, filtration, dehydration,
and aeration [EnergyConsult 2008b; NAEEEP 2001b].
The Australian Bureau of Statistics collects data on the
import and export of air compressors for Australia.
Data on the value of local production is also collected,
although air compressors are combined with pumps and
pumping machinery. Data on the level of imports and
exports to Australia over the period 1999/00 to 2006/07
is presented in Figure 31a, and the data on the value of
imports, exports and estimated local manufacture over the
same period is presented in Figure 31b.
Figure 31b: Value of Imports, Exports & Local Production of Air
Compressors - Australia59
There has been no comprehensive study of the population
of air compressors currently operating in Australia and New
Zealand. A 2001 study [NAEEEP 2001b] estimated that there
were around 1 million air compressors with a rating of less
than 20 kW in use in Australia, and that annual sales were
around 100,000 units per year with the majority (77%) being
air compressors in the range 2.25 to 20 kW. It was estimated
that 90% of these units were driven by an electric prime
mover, 9% by petrol and 1% by diesel.
Total Exports
Local Manufacture
$80
$70
$60
Value ($M)
Figure 31a: Imports and Exports of Air Compressors - Australia58
Total Imports
$50
$40
$30
Total Imports
Total Exports
$20
250,000
$10
$0
200,000
Number of Units
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
150,000
100,000
50,000
2006/07
2005/06
2004/05
2003/04
2002/03
2001/02
2000/01
1999/00
0
Over the period 1999/00 to 2006/07 Australian imports of
air compressors (excluding those mounted on a wheeled
chassis for towing) averaged 110,300 per year for an average
customs value of $40 million. During this period exports
averaged 112,700 units per year for an average customs
value of $20 million. The value of local manufacture is
estimated to have averaged $66 million per year. Taken as a
whole, the data on imports exports and local manufacture
suggest that the value of Australian sales of air compressors
has remained relatively constant at around $89 million per
year.
58
Source: Australian Bureau of Statistics, International Merchandise Trade.
Imports - 8414802062 Reciprocating or rotary air compressors or
pumps (excl those mounted on a wheeled chassis for towing) having
a capacity exc 3 but not exc 25 cubic metres of free air delivered
per minute; Exports - 84148002 Air pumps, air or gas compressors &
ventilation or recycling hoods incorporating a fan (excl. hand or foot
operated air pumps, compressors for refrigerating equip or mounted on
a wheeled chassis for towing & hoods having a maxi horizon side =<
120cm); 84148000 Air pumps, air or other gas compressors and fans and
ventilating or recycling hoods incorporating a fan nes.
59
Source: Australian Bureau of Statistics, International Merchandise
Trade for Imports and Exports. Local manufacture - Australian Bureau
of Statistics, Manufacturing production: Estimated value of sales by
selected Commodities Produced (MIOCC), Pumps & Pumping
machinery. Data only available for selected years. It has been assumed
that air compressors account for 15% of the value of pumps and air
compressors, based on IBISWorld 2004.
33
Figure 32: Value of Imports & Exports of Air Compressors – New
Zealand60
Statistics New Zealand collects data on the value of imports
and exports of air compressors for New Zealand, but does
not collect data on the value of local production. Data on the
value of imports and exports over the period 2000 to 2007
is presented in Figure 32. Over this period the average value
of imports was NZ$22 million per year and the average
value of exports was NZ$10 million.
Total Imports
Total Exports
$40
$35
Analysis of energy end-use by segment using EnergyConsult’s
industrial model suggests that in 2006 in Australia air
compressors accounted for 14.0 PJ of total electricity
consumption (3.6%) and 4.0 Mt CO2-e of greenhouse
emissions in the industrial sector, while in New Zealand it is
estimated that air compressors accounted for 3.3 PJ (5.6%)
and 0.2 Mt CO2-e of greenhouse emissions. In both Australia
and New Zealand use of compressed air is largest in other
manufacturing61 and iron and steel. In Australia it is also
significant in the mining, chemical and non-metallic mineral
sectors. In New Zealand it is also significant in the wood,
paper and printing, chemical and basic non-ferrous metals
sectors, as shown in Figure 33 [EnergyConsult 2008d].
$30
Value ($M)
$25
$20
$15
$10
$5
$0
2000
2001
2002
2003
2004
2005
2006
2007
Figure 33: Estimated Energy End-Use by Air Compressors 2006
4
AUSTRALIA
Petajoules (PJ)
3
2
1
0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
1.0
Basic non-ferrous
Other
metals
manufacturing &
construction
Commercial
Mining
Commercial
Mining
Agriculture
NEW ZEALAND
Petajoules (PJ)
0.8
0.6
0.4
0.2
0.0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
Agriculture
60
Import & export data from Statistics New Zealand Infoshare website for:
8414800100 - Compressor outfits; 8414801101 - Compressors; freepiston generators for gas turbines; 8414801900 - Compressors; n.e.c. in
item no. 8414.80.11
34
61
Other manufacturing includes: Food, beverages and tobacco; Clothing
and footwear; Other metal products; Machinery and equipment; and
Other manufacturing.
6.2 Air Compressor Technology
compressed air through a check valve to the 2nd stage where
it is further compressed and delivered to the storage tank.
Oil may be used as lubricant to reduce wear and tear as
result of friction between reciprocating piston and stationary
cylinder. Where oil free air is required, oil separators or filters
may be used, or an oil free compressor design. Reciprocating
compressors are generally the most energy efficient
compressors, both at full and part loads [EnergyConsult
2008b; NAEEEP 2001b, CAAA].
Air compressors are used to convert electrical energy to
high pressure air that in turn can be used for a number
of applications, especially in the mining and manufacturing
sectors. The majority of compressed air systems, especially
the small and medium-sized units, use an electrical motor
as the prime mover, although portable units generally use a
petrol or diesel driven motor. Large air compressor systems
running for extended periods of hours may be more
economical to run by a gas engine [EnergyConsult 2008b;
NAEEEP 2001b].
Air compressors are classified according to the way air is
compressed. There are three main types of air compressors:Reciprocating, Rotary Screw, and Centrifugal. These basic
types can be further classified on the basis of number of
compression stages, cooling method (air, water, oil), drive
method (motor, engine, steam, other), lubrication (oil, oilfree), and packaged or custom-built. Air compressors form
part of an overall compressed air system, and a typical
system is shown in Figure 34 [EnergyConsult 2008b; NAEEEP
2001b].
Reciprocating compressors use a reciprocating piston to
compress air into a storage tank through a valve. The motor
shuts off when the pressure in the tank reaches a specified
level. As compressed air is used, the pressure inside the tank
drops, and the motor restarts to build the pressure back
up again. The reciprocating compressor can be a single or
two stage system. In single stage systems (typically 800 to
1,000 kPa), only one piston chamber is used to compress
air. In two stage systems, generally large-capacity industrial
scale compressors, the first compression chamber delivers
Screw (or rotary) compressors generally consist of two
meshing helical screws located within a casing which rotate
in opposite directions to compress the air. Both oil injected
and oil free versions – which have no oil in contact with the
air as it passes through the compressor – are available. The
power consumption of screw compressors during unloaded
operation is normally higher than for reciprocating types. For
this reason they are normally used to provide a constant
‘base load’ compressed air requirement to avoid excessive
unloaded operation [EnergyConsult 2008b; NAEEEP 2001b].
Centrifugal compressors use high speed rotating impellers
to accelerate air and raise air pressure. To reach the required
operating pressures, several impeller stages are required.
They are generally used in larger central plant air compressor
applications which require compressed air volumes in the
range 500 to 14,000 L/s. Centrifugal compressors are oil free;
the only lubrication is in the drive system, which is sealed off
from the air system. Centrifugal compressors are recognised
for their ability to operate for long periods without
maintenance. These compressors are fairly efficient down to
around 60% of their design output [EnergyConsut 2008b;
NAEEEP 2001b; CAAA].
Figure 34: Typical Compressed Air System
Distribution
Inlet filter
Receiver
Packaged compressor & motor
Separator
Aftercooler
Compressor
controller
Air line
filter
Dryer
Regulator
35
6.3 Approaches to Improving Energy Efficiency
Air Compressor Energy Efficiency
The energy efficiency of an air compressor is the volume of
air delivered at a particular pressure divided by the power
input, measured in Litres/second/kW or m3/second/kW.
However, as Ellis has noted, the definition and measurement
of air compressor efficiency has many pitfalls because, while
measurement standards do exist, they have not always be
accurately and consistently applied [NAEEEP 2001b, USDoE]:
• Data is often specified for full load operation (full capacity
and specified full-load discharge pressure), but as most
systems operate at part load for much of the time, a
comparison of part load efficiency is also important;
• The actual full-load power requirement of an air
compressor can exceed the nameplate rating of the
motor, so the energy efficiency should be based on actual
power consumption;
• Manufacturers may use a ‘flange-to-flange’ rating for air
flow rate that does not include inlet, discharge and other
losses, which can lead to overstated efficiency ratings. In
addition to this the energy consumption of accessory
components such as cooling fan motors, may not be
treated consistently;
• Manufacturers may apply different ranges or tolerances
to performance data;
Australia & New Zealand
A study undertaken for the E3 Program in the early 2000’s
[NAEEEP 2001b] looked at the potential for introducing
MEPS for packaged air compressors in Australia, but
recommended against introducing MEPS at that time, mainly
because: the potential savings from MEPS were relatively
small compared to the savings from improving the whole
compressed air system; and, (2) it was felt that there was no
split incentive affecting the air compressor purchase decisions,
the main barrier being related to information failures62. This
report concluded that measures such as the provision of
information on the design, operation and control, and energy
efficiency labelling based on common standards, was the best
way forward. A concrete outcome of this was that the E3
Program worked with the Compressed Air Association of
Australia to produce a series of information brochures on
efficient compressed air systems [CAAA].
More recently the Energy Efficiency Exchange website
has been established for industrial energy users, as part
of Australia’s National Framework for Energy Efficiency.
This provides general best practice information on the
design and operation of compressed air systems, as well
as links to useful publications and tools produced by a
number of Commonwealth and State government industrial
energy efficiency programs, as well as useful international
resources63.
In New Zealand, working groups have been set up to
address compressed air system efficiency on a voluntary
basis. The Electricity Commission is running a Compressed
Air Systems (CAS) Best Practice Electricity Efficiency
programme in conjunction with qualified compressed air
system auditors and the Compressed Air Association of
Australasia (CAAA). The programme includes a CAS Auditor
Accreditation Scheme, which is maintained jointly by the
Electricity Commission and the CAAA64.
The Electricity Commission also has observer member status
for the ISO committee ISO/TC 118/SC6, currently charged
with the development of an energy audit standard (ISO/
CD 11011) for compressed air systems. It is hoped that ISO
1101 will eventually replace the locally developed standard
as an integral part of the CAS Auditor Accreditation Scheme
and an international standard for all CAS auditors.
Currently no energy performance standards apply to
compressed air systems in Australia or New Zealand,
although some standards regulate other features of
compressed air systems [EnergyConsult 2008b]:
• AS 2221.1-1979 covers the methods for measurements
of airborne sound emitted by compressor units;
• AS 4297-1995: Underground mining - Stationary air
compressors is based on an international standard and
establishes standards for the safe design, construction,
installation and operation of stationary and skid-mounted
air compressors for general use;
• AS 4637-2006: Measurement of pump displacement
and free air delivery of a reciprocating air compressor
package. This Standard sets out a simplified method for
determining pump displacement and free air delivery of
a reciprocating air compressor package with a maximum
pump displacement of 2,400 litres per minute. It provides
information for manufacturers, suppliers and users of air
compressor packages to facilitate grounds for agreement.
It should be noted that AS 4637-2006 does not measure
the energy performance of the compressed air system,
only the free air delivery.
A MEPS or energy labelling scheme usually relies on the
creation, or use, of an energy performance test that would
typically be incorporated into an Australia/New Zealand
Standard. AS 4637-2006 could be a suitable candidate
for expansion of the performance test to include energy
measurement, and subsequent MEPS levels. The current
scope of AS 4637-2006 is limited to reciprocating air
compressors of up to 2,400 litres per minute in output, or
motors up to a rating of around 30 kW [EnergyConsult
2008b].
63
http://www.ret.gov.au/energy/efficiency/eex/technologies/compressed_
air/Pages/CompressedAir.aspx
62
More recent studies on energy efficiency have noted that split incentives
(or principle agent problems) can still exist where the person responsible
for purchasing equipment is not the person responsible for operating it
and paying the energy bills.
36
64
See: http://www.electricitycommission.govt.nz/opdev/elec-efficiency/
programmes/industrial/cas and http://www.electricitycommission.govt.nz/
advisorygroups/pjtteam/CAS
While there are currently no MEPS which specifically
target air compressors in Australia, the MEPS for threephase electric motors which were first introduced in 2001,
and subsequently made more stringent in 2006, will have
increased the energy efficiency of some air compressor
systems. Ellis estimated that 90% of air compressors with
a rating less than 20kW had an electric prime mover, and
that of these 37% would have a three-phase electric motor
[NAEEEP 2001b].
International
Currently, only the People’s Republic of China has mandatory
MEPS for air compressors. GB 19153-2003, which covers
MEPS for displacement air compressors was published in
May 2003, came into force in November 2003 and was
updated in April 2005. China also operates a voluntary
labelling scheme for air compressors through the China
Certification Centre for Energy Conservation Product65.
Some industry level voluntary standards have been
developed by the American Compressed Air and Gas
Institute (CAGI) in conjunction with their European
counterparts PNEUROP66. These simplified performance
testing standards have been incorporated as addenda to
the International Standards Organisation (ISO) Standard
ISO 1217: 1996, Displacement Compressors Acceptance Tests.
These standards were adopted by the membership of
CAGI and will be reflected in performance data published in
manufacturers’ literature [EnergyConsult 2008b].
In the US and Europe, the following standards have been
developed for measuring air compressor performance:
• CAGI/PNEUROP - Acceptance Test Code for Bare
Displacement Air Compressors (PN2CPTC1);
• CAGI/PNEUROP - Acceptance Test Code for ElectricallyDriven Packaged Displacement Air Compressors
(PN2CPTC2);
• CAGI/PNEUROP - Acceptance Test Code for I.C.
Engine-Driven Packaged Displacement Air Compressors
(PN2CPTC3);
• American Society of Mechanical Engineers (ASME) Power Test Code 9, Displacement Compressors, Vacuum
Pumps, and Blowers; and,
• International Standards Organisation - ISO1217
Displacement Compressors Acceptance Tests.
In addition to these test standards, there are a number
of well regarded best practice programs operating in the
United States and Europe. The focus of these programs is
mainly on maintenance and operations of air compressor
systems, rather on driving increased sales of more efficient air
compressors [NAEEEP 2002]:
• Compressed Air Challenge (US)67 – Launched in 1997
and operated as a voluntary collaboration between
manufacturers, distributors, end users, government, utilities,
energy efficiency organisations and research organisations.
The program is run by a committee which comprises
members from the US Department of Energy, utilities
and industry associations. The main aim of the program
is to provide accurate and up-to-date information
on compressed air system design, performance and
assessment methods using a range of resources, including:
fact sheets; resources manuals; Pressure Point newsletter;
AIRMaster+ Software; and, Training seminars.
• US DoE BestPractices Program68 - Run by the Office
of Industrial Technologies, the program helps industry
identify plant-wide opportunities for energy savings
and process efficiency, including compressed air
systems. The program provides information, training
and grants for implementation and R&D projects. In
addition to promoting the Compresses Air Challenge,
the BestPractices program contains a number of
downloadable resource manuals.
• UK Carbon Trust – was set up by the UK Government
in 2001 as an independent company with a mission
to accelerate the move to a low carbon economy69. It
provides a range of services to industrial energy users
to assist them to reduce their carbon footprint and save
energy, including general energy efficiency best practice
advice, information brochures on specific topics, and
interest free loans for upgrading to energy efficient
equipment. This includes a series of publications on
compressed air systems. Also, in the UK, the Enhanced
Capital Allowance scheme enables businesses to claim
100% first-year capital allowance on investments in
eligible energy-saving equipment. While energy efficient
air compressors are not eligible under this scheme, a
range of energy saving devices and controllers that can
be used as part of a compressed air system do qualify.
The US AirMaster+ program is an interactive software
tool that enables assessment and analysis of compressed
air systems. It is available as a free download from the
Compressed Air Challenge website, requires training to
use, and the US Department of Energy provides a helpline
that users can call for technical assistance. The software
allows users to enter information about their businesses
compressed air system and compressed air requirements,
and can then be used to [NAEEEP, 2002]:
• Calculate energy, air flow and dollar savings from any
combination of eight energy efficiency measures;
• Keep
a maintenance record system;
• Analyse replacement compressors using a catalogue of
commercially available air compressors;
• Undertake
a lifecycle analysis for air compressor projects.
65
67
66
68
See the CLASP website http://www.clasponline.org/clasp.online.
worldwide.php?product=97
http://www.compressedairchallenge.org/content/library/factsheets/
factsh8.pdf
See the Compressed Air Challenge website http://www.
compressedairchallenge.org/index.html
http://www1.eere.energy.gov/industry/bestpractices/compressed_air.html
69
http://www.carbontrust.co.uk/default.ct
37
Energy Saving Options
It is estimated that when electricity is used to produce
compressed air, more than 75% of this energy is lost in the
process of conversion, making it one of the most expensive
forms of ‘energy’ used in industry70. This also means that there
is significant scope for cost effective energy savings. Typically
up to 86% of the total cost of a compressed air system over
its physical life, including investment and maintenance costs, is
the cost of energy [EnergyConsult 2008b].
A major study on air compressors in the European Union
[Radgen & Blaunstein 2001] estimated the energy saving
potential over a 15 year period for a range of measures
that were considered to be cost effective (under 3 year
payback). This study estimated that total savings of 32.9%
were possible, with the majority of this coming from savings
in operation and maintenance – especially eliminating leaks –
and system optimisation. The breakdown is shown in Figure
35.
When installing a new compressed air system, or upgrading
an existing one, savings can be achieved by selecting the most
energy efficient air compressor. This would involve selecting
the most efficient type of air compressor, or combination
of air compressors, for the specific application, and then
selecting the most efficient models available.
Figure 35: Typical Compressed Air System [Radgen & Blaunstein
2001]
Major savings opportunities are found in system optimisation
and selection. Optimising the parameters of compressed
air system with facility requirements can help improve the
overall system efficiency without compromising reliability or
performance. The most practical step is to identify all the
uses of compressed air in the plant, by volume, pressure, and
applications, to create a compressed air demand profile. This
can then be matched to equipment and overall compressed
air system specifications e.g. one or multiple compressors,
central or scattered location, type of end-use equipments etc
[EnergyConsult 2008b].
Other significant savings in the energy consumption of
compressed air systems can be obtained through:
• Identifying and eliminating inappropriate uses of
compressed air;
• Checking
for and eliminating leaks;
• If compressors do not need to run continuously, installing
shut-off timers or automatic timer switches to turn off
compressors when not required;
• Using cooler air from outside rather than the hot air from
the compressor rooms;
• Measuring pressure drop between the receiver tank and
the discharge point and if the drop is excessive (greater
than 10%) investigating if system components and pipes
are obstructed, restricted, rough or incorrectly sized.
6.4 Potential Savings from More Efficient Air
Compressors
The E3 Program could drive improvements to the energy
efficiency of compressed air systems through a combination
of minimum standards to remove the less efficient air
compressors from the market, and best practice programs
which assisted consumers to optimise the energy efficiency
of the compressed air system in which the air compressor is
located at time of installation or upgrade.
Based on the analysis of the energy saving potential for air
compressors in the European Union [Radgen & Blaunstein
2001], it is estimated that MEPS for air compressors could
drive energy efficiency improvements of around 2.5% on
average for each new air compressor installed. In addition to
this, a best practice program focussed on new installations
would be expected to achieve additional savings in the
range of 10% to 20% for each new air compressor installed,
although the overall savings achieved would depend on
the use of the program by industrial consumers. Significant
additional savings (10% to 20%) could be achieved through
best practice maintenance and operational procedures.
70
Energy saving potentials in compressed air systems away from the
compressor, a presentation by Presented by: Frank R. Mueller of Bako
Equipment, in Beijing China on 12th June 2007
38
As MEPS in Australia and New Zealand already target threephase electric motors, and the majority of air compressors
used for industrial applications are likely to have threephase motors, the main target of a MEPS targeting air
compressors would be the compressor unit itself. As noted
above, the potential savings from this are likely to be modest
in comparison to the savings which can be achieved from
system optimisation and best practice maintenance and
In Australia, the projected energy savings from air
compressor MEPS is 0.34 PJ per annum (or 2.0% compared
to BAU) after 10 years, with additional savings of 0.60 PJ
per annum (3.4%) delivered by a best practice program, or
a total energy saving of 0.94 PJ per annum (5.4%). Estimated
total greenhouse gas abatement is 0.2 Mt CO2-e per annum
after 10 years [EnergyConsult 2008d].
13
11
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
9
Figure 36b: Estimated Savings for Policies Targeting Air
Compressors – New Zealand
BAU
MEPS
MEPS & BP
3.8
3.7
3.6
3.5
3.4
3.3
3.2
3.1
3.0
2.9
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2.8
2008
EnergyConsult’s industrial energy model has been used
to estimate the potential savings over a 10-year period71
for policies which target the energy efficiency of new air
compressors. It is assumed that an average saving of 2.5%
per air compressor can be achieved through MEPS, and that
a best practice program targeting new installations could
achieve average savings of 15% but is taken up by only 30%
of the market. The projected energy savings in both Australia
and New Zealand are shown in Figures 36a and36b.
15
2007
Voluntary labelling/certification schemes are not necessarily
taken up by all equipment suppliers in an industry, and often
mean that only the most efficient products are certified/
labelled. The development of a mandatory certification/
energy labelling scheme for compressors in Australia and
New Zealand would ensure that data was collected for all
air compressors covered under the scope of the scheme,
and would facilitate the development of on-line equipment
selection and system optimisation tools.
17
2006
• Certification/labelling for entire compressed air systems
– this could relate to the soundness of the design process
or to the energy performance of the entire system.
19
2006
• Certification/labelling for specific system components
(eg air compressor), based on a measure of their energy
performance (eg L/s/kW). It would be important for this
scheme to provide data on full- and part-load energy
performance, so that the most efficient unit for a specific
application could be selected;
BAU
MEPS
MEPS & BP
Energy Consumption (PJ)
Air compressor manufacturer’s could use a range of design
strategies to develop more energy efficient air compressors,
including use of high efficiency electric motors, speed
controlled motors, more efficient compressors, better
controls, etc. The study on European air compressors
[Radgen & Blaunstein 2001] noted that the development
of a certification and/or labelling scheme is an essential
component of efforts to assist users to design, purchase and
operation of compressed air systems, and put forward two
possible approaches to be considered:
Figure 36a: Estimated Savings for Policies Targeting Air
Compressors – Australia
Energy Consumption (PJ/Yr)
operation.
In New Zealand, the projected energy savings from air
compressor MEPS is 75 TJ per annum (2.0%) after 10 years,
with additional savings of 131 TJ per annum (3.5%) delivered
by a best practice program, or a total energy saving of 205 TJ
per annum (5.5%). Estimated total greenhouse gas abatement
is 23 kt CO2-e per annum after 10 years [EnergyConsult
2008d].
71
The modelling is based on a 10-year program from 2010 to 2020, to
give an indication of the energy savings which could be expected after a
10-year period. Actual savings would depend on when any measures are
introduced.
39
7Industrial Chillers
7.1 Chiller Market & Impacts
Chillers are used in space cooling equipment in commercial
buildings and for refrigeration in many industrial processes,
especially in food processing and the chemical industry.
Industrial chillers are a refrigeration system that cools water
or some other fluid72 to provide a coolant for cold storage,
manufacturing and laboratory processes. The applications
for industrial chillers are varied and include: food processing
and storage, ice making, process cooling in the plastic, rubber
and pharmaceutical industries, mechanical engineering and
machining cooling applications, air drying for compressed
air, solvent coolers, milk coolers, aerospace production, and
medical facilities [NAEEEP Oct 2004b; E3 2009b].
A recent estimate suggests that there are around 17,000
industrial chillers installed in Australia and New Zealand [E3
2009b]73. MEPS for the chillers used in commercial building
HVAC systems were approved for introduction in Australia
and New Zealand from July 2009. However, the scope of the
standard used as the basis for these MEPS largely excludes
the types of chillers used in industrial processes.
Analysis of energy end-use by segment using EnergyConsult’s
industrial model suggests that in Australia in 2006 industrial
chillers were responsible for 12.5 PJ (3.3%) of total electricity
use and 3.6 Mt CO2-e of energy-related greenhouse
emissions in the industrial sector, while in New Zealand
they were responsible for 2.9 PJ (4.9%) of total electricity
use and 0.2 Mt CO2-e of greenhouse emissions. As shown
in Figure 37, in Australia the key segments with the largest
use of industrial chiller energy are other manufacturing74
(largely in food processing), chemicals, mining (largely oil
and gas) and agriculture. In New Zealand the key segments
are other manufacturing, agriculture and chemical products
[EnergyConsult 2008d].
Figure 37: Estimated Energy Use by Industrial Chillers in 2006
6
AUSTRALIA
Petajoules (PJ)
5
4
3
2
1
0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
Commercial
Mining
Agriculture
NEW ZEALAND
1.6
1.4
Petajoules (PJ)
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
72
Brine (salted water) and glycol are used in some applications.
73
This includes 9,000 chillers for process and cold storage refrigeration and
7,950 for milk vat refrigeration..
40
Basic non-ferrous
Other
metals
manufacturing &
construction
74
Commercial
Mining
Agriculture
Other manufacturing includes: Food, beverages and tobacco; Clothing
and footwear; Other metal products; Machinery and equipment; and
Other manufacturing.
7.2 Chiller Technology
Chillers produce their cooling effect through a refrigeration
process which relies on vapour compression (heat given
off) and expansion (heat taken in). The compressor is the
key component of the chiller, and the main categorisation
of chillers is based on the type of compressor and the
compression technique used. There are four different types
of chillers: reciprocating compression; scroll compression;
screw-driven compression; and centrifugal compression. The
prime mover is generally an electric motor, but steam or gas
turbines may also be used on larger systems [EnergyConsult
2008a].
Chillers can also be categorised by the type of refrigerant gas
used. Most chillers use a fluorocarbon refrigerant, and some
use ammonia [E3, 2009b].
A further categorisation of chillers is based on the heat
rejection technique. Chillers can be air-cooled or watercooled. Water-cooled chillers incorporate the use of
cooling towers which improves the chillers’ thermodynamic
effectiveness compared to air-cooled chillers [EnergyConsult
2008a].
The main chiller applications in industry are manufacturing
process refrigeration, cold storage, and milk vat refrigeration.
Chillers which use ammonia as the primary refrigerant are
commonly referred to as Industrial Refrigeration systems.
They are generally based on screw compressors or large
reciprocating compressors, have refrigeration capacities in the
range of 110kW to 1,055 kW or larger, and are used in large
process refrigeration applications and the majority of new
cold storage applications [E3, 2009b].
The most common type of chiller, and the one which
accounts for the majority of electricity consumption, is the
packaged liquid chiller. Packaged liquid chillers are factorymade prefabricated assemblies which are specifically
designed for cooling liquid, and are available with refrigeration
capacities in the range 1kW to 1,000kW. They could be
based on any of the four different compressor types, and
consist of a single unit with various components such as the
chiller unit, condenser, and pump station with recirculating
pump, expansion valve, no-flow shutdown, internal cold
water tank, and temperature control. The internal tank
is used to maintain the temperature of cold water and
eliminates temperature spikes. Closed loop industrial chillers
recirculate some chemical coolant or water with conditioning
additives as the coolant for water cooled components. The
chilled water flows from the chiller to the end-use and back
[EnergyConsult 2008a; E3 2009b].
If the water temperature differential between inlet and outlet
is high, a large external water tank is used to store the cold
water. In this case the chilled water is not going directly from
the chiller to the application, but goes to the external water
tank which acts as a ‘temperature buffer’. The cold water goes
from the external tank to the application and the return hot
water from the application goes back to the external tank,
not to the chiller [EnergyConsult 2008a].
The less common open loop industrial chillers control
the temperature of a liquid in an open tank or sump by
constantly recirculating it. The liquid is drawn from the
tank, pumped through the chiller and back to the tank. An
adjustable thermostat senses the makeup liquid temperature,
cycling the chiller to maintain a constant temperature in the
tank. 75
7.3 Approaches to Improving Chiller Energy
Efficiency
Australia & New Zealand
Currently, no energy performance requirements apply
specifically to industrial chillers in Australia or New Zealand.
The standard AS/NZS 4776 Liquid-chilling packages using
the vapour compression cycle covers commercial packaged
chillers and is the basis of MEPS regulations agreed for
implementation from July 200976 [E3 Dec 2008] In New
Zealand these regulations are expected to be introduced in
December 2009.
The new mandatory chiller MEPS cover commercial chillers
with a refrigeration output capacity of greater than 350 kW.
The intended target of these regulations is chillers installed
in commercial buildings as part of a HVAC system. While
the standard does not specify the intended application of
the chiller, the scope of the standard specifies temperature
conditions typical for space cooling applications77, making it
unlikely that it will apply to many chillers used in industrial
applications [E3 Dec 2008].
During 2009/10, the E3 Committee is developing a 10year Strategy on non-domestic refrigeration equipment78.
This strategy will be the main vehicle for progressing
the development of any MEPS for industrial chillers. The
draft strategy proposes that minimum standards based
on Coefficient of Performance79 be implemented for
compressors used in all types of non-domestic chillers, and
that minimum standards be implemented for fan motors
rated between 5 and 2,000 Watts used in non-domestic
refrigeration systems. These ‘horizontal’ standards would also
impact on chillers used in industrial applications [E3 2009a &
2009b].
75
http://en.wikipedia.org/wiki/Chiller
76
The standard is split into three parts: Part 1.1: Method of rating and
testing for performance—Rating; Part 1.2: Method of rating and testing
for performance—Testing; Part 2: Minimum energy performance
standard (MEPS) and compliance requirement.
77
Leaving chilled water of 4 – 9oC, entering condenser water temperature
of 18 to 40oC or entering condenser air-dry-bulb temperature of 13 to
52oC.
78
The strategy In from the Cold: Strategies to increase the energy efficiency
of non-domestic refrigeration in Australia and New Zealdn was released in
October 2009 and is scheduled to be finalised in late 2010.
79
Coefficient of Performance (CoP) is the ratio of the refrigerating capacity
of the compressor and the energy consumption of the compressor.
41
International
Four countries have mandatory minimum energy
performance standards relating to water chillers:- USA,
Canada, Chinese Taipei and the People’s Republic of China,
and Israel has voluntary minimum standards80. However, like
the new Australian and New Zealand MEPS requirements,
these regulations relate mainly to the performance of
chillers used for space cooling applications. The USA, Canada
and Chinese Taipei all test chillers to ARI 550/590 or the
equivalent standard [EnergyConsult 2008a].
Currently there are no mandatory MEPS or labelling
requirements which apply to industrial chillers. The People’s
Republic of China has a voluntary labelling scheme for all
types of chillers81, which is run by the China Certification
Centre for Energy Conservation Product (CECP). While the
basic requirement for the products certified by CECP is to
meet certain quality, safety and environmental standards, no
specific information on the chiller certification program is
available in English.
A number of voluntary schemes are operating in Europe.
The UK Government’s Enhanced Capital Allowance (ECA)
scheme has established a set of performance specifications
for compressors to serve as the eligibility criteria for a
capital allowance write-down. The Association of European
Compressor and Controls Manufacturers (ASERCOM)
manage a voluntary program which certifies the performance
of compressors [E3, 2009b].
There are a number of standards used overseas which could
be used as the basis of a MEPS program covering industrial
chillers in Australia and New Zealand [E3 2009b]:
• EN13771-1 (2003) Compressors and Condensing Units
for Refrigeration – Performance Testing and Test Methods –
Part 1: Refrigerant Compressors. This describes a number
of selected performance test methods which allow the
determination of the Coefficient of Performance;
• ANSI/ASHRAE Standard 23-2005 Methods of Testing for
Rating Positive Displacement Refrigerant Compressors and
Condensing Units.
Energy saving options
Technologically there are number of options that can be
used to improve the energy efficiency of industrial chillers.
These include intelligent control systems, improving heat
transfer, use of efficient compressor technology, use of an
efficient prime-mover (eg motor), and use of ‘free cooling’
[EnergyConsult 2008a]:
• Intelligent control systems can control all aspects of
chiller operation to ensure that coolant supply matches
refrigeration demand. The control system can be used
to control water flow, output of the prime mover, flow
control of coolant, improved temperature sensing at
end-use and optimisation between changing cooling
requirements at end-use point to the output of the chiller.
• Improved heat transfer can be achieved by minimising heat
losses due to leakages and poor insulation, use of material
with better heat transfer and corrosion resistance
characteristics, and improved and unrestricted flow of
coolant.
• Use of more efficient compression technology can improve
the efficiency of the chiller. Centrifugal and scroll types
compressors are generally considered to be more
efficient than the reciprocating type that is commonly
used. In addition, optimum sizing and use of an efficient
prime mover can also improve energy performance of
the chiller.
• ‘Free cooling’ – use of lower ambient temperatures to
pre-cool the make-up or returning water to the chiller
- is yet another way of minimising energy input to the
chiller. Free cooling is particularly useful for industrial
chillers, as they often operate irrespective of weather
conditions, and can be achieved with a temperature
differential of as little as 1oC.
7.4 Potential Savings from More Efficient
Industrial Chillers
The E3 Program could drive improvements to the energy
efficiency of industrial chillers through a combination of
minimum standards to remove the less efficient chillers
from the market, and best practice programs which
assisted consumers to optimise the energy efficiency of the
refrigeration system in which the chiller is located at time of
installation or upgrade.
Based on the analysis undertaken for the proposed
commercial chiller MEPS in Australia and New Zealand, it
is estimated that MEPS for industrial chillers could drive
energy efficiency improvements in the range of 5% to 10%
on average for each new chiller installed. In addition to this,
a best practice program focussed on new installations would
be expected to achieve additional savings in the range of 2%
to 25% [EnergyConsult 2008a] for each new chiller installed,
although the overall savings achieved would depend on the
use of the program by industrial consumers.
EnergyConsult’s industrial energy model has been used
to prepare a preliminary estimate of the potential savings
over a 10-year period82 for policies which target the energy
efficiency of new industrial chillers. It is assumed that an
average saving of 8% per chiller can be achieved through
MEPS, and that a best practice program – based on
equipment selection and system optimisation tools - could
achieve average savings of 10% but is taken up by only 30%
of the market. The projected energy savings in both Australia
and New Zealand are shown in Figures 38a and 38b.
82
80
http://www.clasponline.org/clasp.online.worldwide.php?product=37
81
CLASP Website: http://www.clasponline.org/clasp.online.worldwide.
php?product=111
42
The modelling is based on a 10-year program from 2010 to 2020, to
give an indication of the energy savings which could be expected after
a 10-year period. Actual savings would depend on when any measures
are introduced. More detailed estimates will be prepared as part of the
commercial refrigeration equipment strategy.
Figure 38a: Estimated Savings for Policies Targeting Chillers –
Australia
In Australia, the projected energy savings from industrial
chiller MEPS is 0.8 PJ per annum (or 5.1% compared to
BAU) after 10 years, with additional savings of 0.3 PJ per
annum (1.8%) delivered by a best practice program, or a
total energy saving of 1.1 PJ per annum (6.9%). Estimated
total greenhouse gas abatement is 0.2 Mt CO2-e per annum
after 10 years [EnergyConsult 2008d].
BAU
MEPS
MEPS & BP
18
Energy Consumption (PJ/Yr)
17
In New Zealand, the projected energy savings from chiller
MEPS is 0.18 PJ per annum (5.1%) after 10 years, with
additional savings of 0.06 PJ per annum (1.9%) delivered by a
best practice program, or a total energy saving of 0.24 PJ per
annum (6.9%). Estimated total greenhouse gas abatement
is 26 kt CO2-e per annum after 10 years [EnergyConsult
2008d].
16
15
14
13
12
11
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
10
Figure 38b: Estimated Savings for Policies Targeting Chillers –
New Zealand
As noted above, further work on industrial chiller MEPS
will be progressed as part of the E3 Program’s 10-Year
Strategy on non-domestic refrigeration equipment. A more
detailed assessment of the feasibility of regulating the energy
efficiency of this equipment, and the energy and greenhouse
savings which could be achieved, will be undertaken as part
of this work program [E3 2009a & b].
BAU
MEPS
MEPS & BP
4.0
3.0
2.5
2.0
1.5
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
1.0
2006
Energy Consumption (PJ/Yr)
3.5
43
8Industrial Boilers
Boilers are an important item of industrial equipment and
are also used widely in the commercial sector. In industrial
applications, boilers are generally used to generate steam
or high-temperature hot water (100oC to 200oC) hot
water. Steam is used for many industrial process heating
applications, and is also used to control temperatures and
pressures during chemical processes, strip contaminants
from process fluids, dry paper products, to drive mechanical
processes, and as a source of hydrogen for steam methane
reforming in chemical and petroleum refining processes [IEA
2007].
Unlike the United States [ORNL 2005], there has been no
comprehensive study of the population of industrial boilers
currently operating in Australia and New Zealand. Two
studies on boilers have been undertaken for the E3 Program.
The first of these [NAEEEP 2001a] explicitly excluded
industrial boilers, and while the second study [NAEEEP
2004a] covered boilers used for domestic, commercial and
industrial applications, it focused only on oil-fired boilers and
contained no data on the installed stock of gas fired boilers.
Over the period 1999/00 to 2006/07 imports of boilers
averaged 5,428 per year for an average customs value of
$10.2 million. During this period exports averaged 6,979
units per year for an average customs value of $3.5 million.
The value of local manufacture averaged $35.3 million per
year. Taken as a whole, the data on imports exports and local
manufacture suggest that the value of Australian sales of
boilers is currently around $50 million.
Figure 39b: Value of Imports, Exports & Local Production of Boilers
- Australia84
Total Imports
Total Exports
Local Manufacture
$45
$40
$35
$30
Value ($M)
8.1 Boiler Market & Impacts
$25
$20
$15
The Australian Bureau of Statistics collects data on the
import and export of boilers for generating steam and hot
water, as well as data on the value of local production. Data
on the level of imports and exports to Australia over the
period 1999/00 to 2006/07 is presented in Figure 39a, and
the data on the value of imports, exports and estimated local
manufacture over the same period is presented in Figure 39b.
Figure 39a: Imports and Exports of Boilers - Australia83
Total Imports
Total Exports
35,000
$10
$5
$0
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Statistics New Zealand collects data on the value of imports
and exports of boilers for generating steam and hot water,
but does not collect data on the value of local production.
Data on the value of imports and exports to New Zealand
over the period 2000 to 2007 is presented in Figure 40.
Over this period the import of boilers had an average
customs value of NZ$1.5 million, and the export of boilers
had an average customs value of NZ$1.9 million.
Number of Units
30,000
25,000
20,000
15,000
10,000
5,000
2006/07
2005/06
2004/05
2003/04
2002/03
2001/02
2000/01
1999/00
0
84
83
Source: Australian Bureau of Statistics, International Merchandise Trade.
Imports & Exports - Watertube boilers with a steam production exc 45
t per hour; Watertube boilers with a steam production not exc 45 t per
hour; Vapour generating boilers (incl. hybrid boilers but excl. watertube
boilers and central heating hot water boilers capable also of producing
low pressure steam); Super-heated water boilers.
44
Source: Australian Bureau of Statistics, International Merchandise Trade
for Imports and Exports. Local manufacture - Australian Bureau of
Statistics, Manufacturing production (Data only available for 2001/02,
2002/03, 2004/05 & 2005/06): Estimated value of sales by selected
Commodities Produced (MIOCC) - 276921 Super heated water boilers
and steam generators (includes parts) (except central heating boilers);
condensers for steam or other vapour power units.
Figure 40: Value of Imports & Exports of Boilers – New Zealand85
Total Imports
Total Exports
$8
$7
Value ($M)
$6
$5
$4
$3
Analysis of energy end-use by segment using EnergyConsult’s
industrial model suggests that in 2006 in Australia boilers
accounted for 98.9 PJ of total gas consumption (25.3%)
and 6.4 Mt CO2-e of greenhouse emissions in the industrial
sector, while in New Zealand it is estimated that boilers
accounted for 18.6 PJ (63.8%) of total gas consumption
and 1.0 Mt CO2-e of greenhouse emissions. Boilers are also
responsible for a significant amount of energy consumption
in the commercial sector, especially in Australia: in 2006
it is estimated that they accounted for 20.7 PJ of gas
consumption in the Australian commercial sector, and for 2.3
PJ in New Zealand [EnergyConsult 2008d].
$2
$1
$0
2000
2001
2002
2003
2004
2005
2006
2007
Figure 41 provides an estimate of the total gas use of boilers
by segment, for both Australia and New Zealand. The major
industrial end-using segments in Australia are Chemical
products, Other Manufacturing86 (especially food processing)
and Wood, Paper and Printing (mainly in the paper industry)
and Mining. In New Zealand the main end-using segments
are Other manufacturing, Wood, paper and printing, and
Chemical products. [EnergyConsult 2008d]
Figure 41: Estimated Energy End Use by Gas Fired Boilers, 2006
60.0
AUSTRALIA
Petajoules (PJ)
50.0
40.0
30.0
20.0
10.0
0.0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
Commercial
Mining
Agriculture
NEW ZEALAND
8
7
Petajoules (PJ)
6
5
4
3
2
1
0
Wood, paper &
printing
Chemical products
Non-metallic
mineral products
Iron and steel
Basic non-ferrous
Other
metals
manufacturing &
construction
Commercial
Mining
Agriculture
85
Import & export data from Statistics New Zealand Infoshare website for:
Boilers; watertube boilers with a steam production exceeding 45t per
hour; Boilers; watertube boilers with a steam production not exceeding
45t per hour; Boilers; vapour generating boilers (excluding watertube
boilers), including hybrid boilers n.e.c. in heading no. 8402; Boilers; superheated water boilers
86
Other Manufacturing includes: Food, beverages and tobacco; Clothing
and footwear: Other metal products; Machinery and equipment; and
Other manufacturing.
45
8.2 Boiler Technology
Boilers and/or water heating systems use various types of
fuels to raise the energy content of water to generate hot
water or steam that in turn can be used for a number of
applications. Many fossil and non-fossil fuels are fired in
boilers, but the most common types of fuel include natural
gas, coal and oil. Bagasse, wood waste and black liquor are
also used in some industries, and some boilers (mainly in
commercial applications) use electricity as the primary fuel
[EnergyConsult 2008c].
Boilers can be categorised on the basis of their output
(hot water or steam), and their capacity. The main types of
boilers used in Australia and New Zealand are shown in
Table 9 [NAEEEP 2001a]. Boilers which produce only low
temperature hot water are used mainly in domestic (eg
central heating) and commercial applications.
Table 9: Typical Boiler Types & Capacities in Australia
Type
Low temperature
hot water
High temperature
hot water
Steam
Typical
temperature range
Typical size range
80 to 95oC
10 kW to 5,000 kW
100 to 200oC
50 kW to 6,000 kW+
150 to 250oC
500 kW to 50,000 kW+
Industrial boilers can also be characterized by the type of
heat transfer system they use – either firetube or watertube
- and by the fuel-burning system. In firetube boilers the
water is stored in the main body of the boiler and the hot
combustion gases pass through metal tubes immersed in the
water, and they heat the water via conduction through the
firetube. Firetube boilers generally burn gas or oil, or both.
Their main advantages are their simplicity and low cost. They
are best suited to producing hot water or low-pressure
steam [ORNL 2005].
In watertube boilers the fuel is combusted in a central
chamber and the exhaust gases flow around metal tubes
that contain the water. The watertubes are heated by a
combination of radiation from the flame, and conduction
and convection from the hot combustion gases. Small
watertube boilers are generally fired by gas or oil, but larger
units generally use coal, refuse, wood wastes and by-product
liquids and gases. Watertube boilers tend to be more
complex and expensive than firetube boilers, but they can
produce steam at very high temperatures and pressures
[ORNL 2005].
Boilers are occasionally distinguished by their method of
fabrication. The term ‘packaged boiler’ refers to a boiler that
is shipped complete with heating equipment, mechanical
draft equipment, and automatic controls. ‘Field-erected
boilers’ are too large to transport as an entire assembly.
They are constructed at the site from a series of individual
components [EnergyConsult 2008c].
46
The type, output and capacity of the boilers used in
industry differs between industry sectors [ORNL 2005;
EnergyConsult 2008c]:
• The food processing industry uses both high temperature
hot water and steam. While some large boilers are used,
this industry is characterised by a large number of small
natural gas-fired packaged boilers;
• The pulp and paper industries are major users of
industrial steam, and generally use large steam boilers.
As they also require a large amount of electricity, some
businesses use combined heat and power (or cogeneration) systems to generate both electricity and
steam. Wood chips, wood waste, and black liquor may be
used to fire these boilers;
• The chemical industry has a large number of both small
and large boilers. These could be fired by gas, process byproducts or coal/coke;
• The petroleum refining industry is characterised by large
steam boilers. These are commonly fired by by-product
fuels or by natural gas;
• The primary metals industry, especially steel making,
use large boilers in a range of processes including onsite power generation and turbine driven machinery. By
product fuels such as coke oven gas and blast furnace gas
are often used to fire the boilers.
8.3 Approaches to Improving Boiler Energy
Efficiency
Australia & New Zealand
Currently there are no energy performance requirements
for gas-fired industrial boilers in Australia and New Zealand.
Previous studies which have looked at the potential for
boiler MEPS or labelling either excluded industrial boilers, or
only considered oil-fired boilers [NAEEEP 2001a; NAEEEP
2004a] and recommended against the implementation of
MEPS. Given the relatively small impact and declining market
for oil-fired boilers (less than 2% in 1998/99), any reduction
in energy or greenhouse gas that could be achieved by
regulation was likely to be too small to offset its costs.
Two Australian Standards – AS 2593: 2004 and AS 1228-2006 –
specify requirements for the design construction and operation
of boilers, but they do not contain any energy performance
requirements or test methods [EnergyConsult 2008c]:
• AS 2593: 2004 Boilers—Safety management and
supervision systems. This standard specifies the
requirements for the operation of boilers, including
unattended, limited attendance and fully attended, and
for all types of fuel firing. It also details the checking,
testing and maintenance requirements for each category
of attendance. This standard was substantially updated
in 2003 – 2004 by Standards Australia/New Zealand
Standard Committee ME/1, Pressure Equipment, to cover
the changes within the pressure equipment industry
regarding the introduction of self regulation.
• AS 1228-2006 Pressure equipment – Boilers. This standard
specifies requirements for materials, design, construction,
inspection and testing boilers as defined in AS/NZS
1200. It specifically applies to the design and construction
of boilers, including superheaters, re-heaters and
economisers.
A MEPS or labelling scheme usually relies on the creation, or
use, of an energy performance test that would typically be
incorporated into an Australia/New Zealand Standard. AS
2593:2004 could be a suitable candidate for the inclusion of
an energy performance test and subsequent MEPS levels.
Chinese Taipei has had mandatory MEPS for gas- and oil-fired
steam boilers (but excluding through-flow boilers) since
2003. The standards are based on full load performance
including any heat recovery systems, and seem to cover
boilers which could have industrial applications. The standards
relating to different types of gas-fired boilers are shown in
Table 11.
Table 11: Chinese Taipei Gas-Fired Boiler MEPS levels88
Capacity Range
>= 30 ton/hr
>= 10 to < 30 ton/hr
>= 5 to < 10 ton/hr
< 5 ton/hr
International
Currently gas-fired boilers are subjected to energy
performance requirements in Canada, Chinese Taipei, Czech
Republic, EU Member Countries, Republic of Korea, Slovakia,
UK, as shown in Table 10. Canada, Chinese Taipei, EU Member
Countries, and Republic of Korea impose mandatory
minimum energy performance requirements on gas-fired
boilers. Energy labelling is mandatory in the European Union,
while Canada, Chinese Taipei, Czech Republic, Republic of
Korea, Slovakia, UK have voluntary labelling schemes for gasfired boilers.
Table 10: Summary of International Performance Standards &
Labelling for Boilers87
Conutry
MEPS
Labelling
Scheme
National Test
Standards
Canada
Mandatory
Voluntary
CAN/CGA P.21991
Chinese Taipei
Czech Republic
EU Member
Countries
Mandatory
Republic of Korea
Slovakia
United Kingdom
Voluntary
Mandatory
Mandatory
Mandatory
Mandatory
Voluntary
Watertube
Smoketube
93.5%
92.5%
91.5%
90.5%
92.0%
91.0%
90.0%
89.0%
The United States does not currently have any energy
performance requirements for boilers, but the US
Department of Energy’s ITP BestPractices Program provides
website access to a range of information resources as well as
steam system software assessment tools89.
Energy Saving Options
Figure 42 shows the typical energy losses which occur in a
boiler during the process to convert the energy in the fuel
to steam or hot water. As can be seen, typically the thermal
efficiency of a boiler varies between 75 – 77%, although the
efficiency can depend on the fuel – a well designed coalfired boiler has a typical efficiency of 84%, while a boiler
fired by spent liquor might have an efficiency of only 65%.
The efficiency of the boiler can be improved by improving
the combustion efficiency and minimising the losses
[EnergyConsult 2008c; IEA 2007].
Figure 42: Typical losses in a gas-fire boiler
KS B 8101
KS B 8127
KS B 8109
Voluntary
Voluntary
While four countries currently have mandatory performance
requirements relating to gas-fired boilers, only Chinese Taipei
seems to have standards which cover industrial boilers. The
Canadian MEPS and voluntary labelling scheme, effective
from 1998, covers only packaged gas-fired boilers for use
in low-pressure steam or hot water central heating systems
which have an input rate of less than 88 kW. The European
Union mandatory MEPS and labelling scheme, also effective
from 1998, applies to hot water boilers with liquid or
gaseous fuels in the range of 4 kW to 400 kW. The scheme
operating in the Republic of Korea since 2001, covers both
MEPS and mandatory labelling, but is restricted to gas boilers
used in domestic applications.
88
CLASP Website: http://www.clasponline.org/clasp.online.worldwide.
php?productsumm=260&product=61
87
CLASP Website: http://www.clasponline.org/clasp.online.worldwide.
php?product=61
89
http://www1.eere.energy.gov/industry/bestpractices/steam.html
47
Figure 43: Example of an industrial steam system [US DoE 2004]
Various techniques can be used to reduce losses and
improve the energy efficiency of boilers [EnergyConsult
2008c]:
Figure 44: Estimated Steam System Use and Losses in United
States [US DoE 2004]
Energy conversion losses
10%
• Improve combustion efficiency. A range of options are
available, including: economisers, combustion air preheaters, flue gas condensers, flue gas analysis, oxygen
control, air infiltration, exhaust draft control, scale
deposits and turbulators.
Boiler losses
20%
• Improve
blowdown heat recovery using deareators.
• Reduce radiation and convection losses using boiler
reset control and boiler sequence control.
Investing in more energy efficient boilers can be worthwhile
for businesses. A US industry sourcebook estimates that
energy costs typically account for around 96% of a boiler’s
lifecycle costs, with the initial capital cost accounting for only
3% and maintenance costs around 1% [US DoE 2004]. It’s
important to remember that boilers usually form part of a
wider steam (or hot water) system, for example as shown in
Figure 43. An analysis of steam systems in the United States
estimated that the overall system efficiency of steam systems
was only 55%, with losses of around 30% occurring in the
boiler and 15% in the distribution system, as shown in Figure
44 [US DoE 2004].
A wide range of opportunities are available to reduce the
losses which occur in steam systems downstream from the
boiler, some of which are very cost effective, as shown in
Table 12 [IEA 2007]. As with compressed air systems, the
elimination of (steam) leaks can also provide very cost
effective savings.
48
Distribution losses
15%
Steam to processes
55%
Table 12: Options for increasing the energy efficiency of steam
systems [IEA 2007]
Typical
Savings
Typical Investment
($US/GJ Steam/Yr)
Steam traps
5%
$1
Pipe insulation
5%
$1
1 – 3%
$5
Measure
Insulate valves & fittings
Reduce excess air
2%
$5
Feed-water economisers
5%
$10
Return condensate
10%
$10
Flash condensate
0 – 10%
$10
Improved blow down
2 – 5%
$20
Minimise short cycling
0 – 5%
$20
Vapour recompression
0 – 20%
$30
Vent condenser
1 – 5%
$40
8.4 Potential Savings from More Efficient
Industrial Boilers
Figure 45b: Estimated Savings for Policies Targeting Industrial
Boilers – New Zealand91
EnergyConsult’s industrial energy model has been used to
estimate the potential savings over 10 years90, of targeting the
energy efficiency of new gas-fired boilers used in industrial
applications. It is assumed that an average saving of 4%
per boiler can be achieved through MEPS, and that a best
practice program could achieve savings of approximately
10% if taken up by 30% of the market. The projected energy
savings in both countries are shown in Figures 45a and 45b.
Figure 45a: Estimated Savings for Policies Targeting Industrial
Boilers – Australia
BAU
MEPS
BAU & MEPS
150
27
25
23
21
19
17
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
15
In New Zealand, the projected energy savings from gas-fired
boiler MEPS is 0.89 PJ per annum (3.3%) after 10 years, with
additional savings of 0.54 PJ per annum (2.1%) delivered by a
best practice program, or a total energy saving of 1.42 PJ per
annum (5.4%). Estimated total greenhouse gas abatement
is 76 kt CO2-e per annum after 10 years [EnergyConsult
2008d].
The implementation of MEPS for boilers would also have
impacts in the commercial sector. In Australia, the projected
energy savings in the commercial sector from boiler MEPS
is 0.9 PJ after 10 years, with additional savings of 0.6 PJ
per annum delivered by a best practice program, or a
total energy saving of 1.5 PJ per annum. Estimated total
greenhouse gas abatement is 0.09 Mt CO2-e per annum after
10 years [EnergyConsult 2008d].
In New Zealand, the projected energy savings in the
commercial sector from fan MEPS is 0.07 PJ per annum
after 10 years, with additional savings of 0.04 PJ per annum
delivered by a best practice program, or a total energy
saving of 0.12 PJ per annum. Estimated total greenhouse
gas abatement is 6 kt CO2-e per annum after 10 years.
[EnergyConsult 2008d]
140
Energy Use (PJ/Yr)
29
2006
EnergyConsult estimate that MEPS for industrial boilers could
achieve savings in the range of 3% to 5% on average for each
new boiler installed. [EnergyConsult 2008c] In addition to
this, a best practice program focussed on new installations
might be expected to achieve additional savings of around
10% to 15% [IEA, 2007] for each new boiler installed,
although the overall savings achieved would depend on the
use of the program by industrial consumers.
BAU
MEPS
BAU & MEPS
Gas Consumption (PJ/Yr)
The E3 Program could drive improvements to the energy
efficiency of steam systems through a combination of
minimum standards, to remove the less efficient gas-fired
boilers from the market, and best practice programs to
help consumers to optimise the energy efficiency of steam
systems in which boilers are located at the time of installation
of upgrade.
130
120
110
100
90
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
80
In Australia, the projected energy savings from boiler MEPS is
4.5 PJ per annum (or 3.2% compared to BAU) after 10-years,
with additional savings of 2.7 PJ per annum (2.0%) delivered
by a best practice program, or a total energy saving of 7.3 PJ
per annum (5.2%). Estimated total greenhouse gas abatement
is 0.47 Mt CO2-e per annum after 10 years [EnergyConsult
2008d].
90
The modelling is based on a 10-year program from 2010 to 2020, to
give an indication of the energy savings which could be expected after a
10-year period. Actual savings would depend on when any measures are
introduced.
91
The sharp decline in estimated boiler gas consumption between 2006
and 2007 is an artefact of the model used to prepare these estimates. It
is based on NZ Ministry of Economic Development projections which
see gas use declining in the short term.
49
9 Towards a 10-year Strategy
9.1 The Case for Action
The analysis in this discussion document presents a case to
develop a 10-year strategy to improve the energy efficiency
of industrial equipment.
Motor systems and gas-fired steam systems (or boilers)
are responsible for a significant proportion of industrial
(manufacturing, mining and agriculture) energy consumption.
In Australia, motor systems are estimated to account for 49%
of total industrial electricity consumption, and boilers for 25%
of total industrial gas consumption. In New Zealand, motor
systems are estimated to account for 55% of total industrial
electricity consumption, and boilers for 64% of total industrial
gas consumption [EnergyConsult 2008d].
• Split incentives – an electrical or mechanical department,
or an external contractor, is usually responsible for
specifying and installing the equipment. An operational
department is usually responsible for the capital costs
and running costs of the equipment. Even then, the
operational department might focus more on keeping
a production process operating rather than minimising
energy costs
A number of studies have estimated that cost-effective savings
of between 20% to 25% are possible by optimising the energy
efficiency of motor systems, and savings in the range of 10% to
15% for steam systems [IEA 2006, IEA 2007, US DoE 2004].
The economic and environmental benefits of realising these
savings are very significant. By way of illustration, if these savings
could be fully realised by 2020, this would lead to:
The expansion of Australia and New Zealand’s E3 Program
beyond motors and industrial transformers to encompass
a wider range of industrial equipment would help to unlock
some of the energy and greenhouse saving potential and
other benefits associated with motor and steam systems, by
helping to address split incentives, information failures and
bounded rationality.
• In Australia, greenhouse abatement of 11.5 to 14.7 Mt
CO2-e per annum, and energy bills savings of $1,177 to
$1,485 million per annum based on current energy prices;
Internationally, a number of countries already regulate key
industrial equipment for MEPS or include this equipment in
endorsement labelling or efficiency certification programs.
Recently in the European Union, the EU Directive for
Energy Using Products has meant that significant effort has
been focussed on developing test methods and regulatory
levels for pumps and fans with industrial and commercial
applications. Other international groupings, including the
IEA Implementing Agreement on Efficient Electrical-End
Use Equipment, SEEM and APP are also working on
internationally harmonised approaches to testing and
regulating electric motor systems.
• In
New Zealand, greenhouse abatement of 1.0 to 1.3 Mt
CO2-e per annum, and energy bills savings of $245 to
$311 million per annum, based on current energy prices.
The energy savings would assist industry to more easily
manage their energy consumption, make them more
competitive and reduce the impact on their operations of
increased energy costs resulting from any emissions trading
scheme. An emissions trading scheme (ETS) is being
implemented in New Zealand and is still the subject of
debate in Australia.
While the introduction of emissions trading in both Australia
and New Zealand will generate a carbon price signal
which should encourage further uptake of energy efficient
technologies in industry, for most businesses energy costs are
only a small proportion of overall costs and energy is noncore business. These factors result in a relatively low price
elasticity of demand, which suggests that over the short to
medium term complementary measures will be needed.
Further, a range of non-price barriers relating to industrial
equipment, and to relatively complex motor and steam
systems in particular, mean that businesses generally take a
conservative approach to replacing equipment and often
don’t consider overall system efficiency:
• Equipment such as pumps, fans, air compressors, etc,
and the motors which drive this equipment are often
oversized for their application, resulting in significantly
lower operating efficiencies;
50
• The focus of most businesses is on maintaining
production – the need to have a system which works
often means that like is replaced with like, and system
changes or the use of different, more efficient equipment
can be seen as a risk. This is sometimes referred to as
bounded rationality;
At its meeting held on 2 July 2009, all Australian governments
(through COAG) announced their intention to significantly
expand the E3 Program under the banner of the National
Strategy for Energy Efficiency. This includes a commitment
to: ‘Expand MEPS significantly into the industrial equipment
sector to cover off-the-shelf products in areas such as:
compressors, boilers, industrial chillers, pumps and fans, heat
exchangers and refrigeration equipment’.
This Discussion Paper has presented a high level analysis to
assess the current Australian, New Zealand and international
context for regulating these types of industrial equipment,
and to identify the priority products for further consideration.
9.2 Key Priorities for Action
EnergyConsult’s model of industrial equipment energy
end-use was used to generate indicative estimates of the
energy and greenhouse savings which could be achieved by
implementing MEPS for a range of key industrial equipment
at levels consistent with those implemented or being
Table 13: Estimated Energy & Greenhouse Savings from Industrial Equipment Efficiency Program
AUSTRALIA
Average Saving per new unit installed (%)
Product
Best
Practice
MEPS
Pumps
Fans
Air comp.
Ind. chillers
Boilers
TOTAL
3.5%
12.0%
2.5%
8.0%
4.0%
6.0%
6.0%
4.5%
3.0%
3.0%
Total
Energy Saving 2020 (PJ/Yr)
Best
Practice
MEPS
9.5%
18.0%
7.0%
11.0%
7.0%
2.3
2.2
0.3
0.8
4.5
10.2
GHG Saving 2020 (Mt/Yr)
Total
3.7
1.0
0.6
0.3
2.7
8.4
6.0
3.2
0.9
1.1
7.3
18.5
MEPS
0.48
0.47
0.07
0.18
0.29
1.49
Best
Practice
Total
0.79
0.21
0.13
0.06
0.18
1.36
1.27
0.67
0.20
0.24
0.47
2.84
New Zealand
Average Saving per new unit installed (%)
Product
Best
Practice
MEPS
Pumps
Fans
Air comp.
Ind. chillers
Boilers
TOTAL
3.5%
12.0%
2.5%
8.0%
4.0%
6.0%
6.0%
4.5%
3.0%
3.0%
Total
9.5%
18.0%
7.0%
11.0%
7.0%
Energy Saving 2020 (TJ/Yr)
323.0
467.3
74.6
177.2
878.5
1,920.5
Figure 46: Relative Contribution of Equipment Types to Greenhouse
Abatement
AUSTRALIA
Boilers
16%
Pumps
45%
Industrial
chillers
8%
Air
compressors
7%
Fans
24%
NEW ZEALAND
Boilers
25%
Pumps
32%
Industrial
chillers
9%
Best
Practice
MEPS
532.2
204.5
130.6
60.7
544.1
1,472.2
Total
855.2
671.8
205.3
237.9
1,422.6
3,392.8
GHG Saving 2020 (kT/Yr)
MEPS
35.9
51.9
8.3
19.7
46.8
162.5
Best
Practice
59.1
22.7
14.5
6.7
29.0
132.0
Total
94.9
74.6
22.8
26.4
75.8
294.5
considered in other jurisdictions, in companion with a limited
best practice program. A best practice program would not
seek to optimise the energy efficiency of all existing motor
and steam systems, but would use equipment selection and
optimisation tools incorporating the energy performance
data collected through the MEPS process to assist companies
to optimise these systems when installing new equipment.
The results of this analysis are presented in detail in Table 13,
and graphically in Figure 46. To aid comparison, the analysis
assumes that the MEPS and best practice programs for all
equipment are implemented for a 10-year period from 2010
to 2020.
Based on the potential for greenhouse abatement92, the
highest priority products in both Australia and New Zealand
are pumps, fans and gas-fired boilers – these products could
deliver around 85% of the total savings identified. In New
Zealand, the greenhouse saving potential for boilers is slightly
greater than the greenhouse saving potential for fans, due
to both the high percentage of industrial gas used by boilers
and the relatively low greenhouse coefficient of electricity in
New Zealand.
The EnergyConsult model has also been used to assess
the potential benefits and costs of an industrial equipment
energy efficiency program which targeted key industrial
equipment with both MEPS and an associated best practice
Air
compressors
8%
Fans
25%
92
From the New Zealand perspective reduced energy costs and improved
energy security are a higher priority than greenhouse abatement.
However, viewed from this perspective pumps, fans and gas-fired boilers
would still be the main priority.
51
program targeting new equipment at time of replacement.
Due to the nature of this model (see Appendix 1) the
incremental costs for businesses arising from the MEPS and
best practice programs were specified in terms of $/kWh
of annual savings, and the savings figures used are shown in
Table 1493.
The benefit-cost ratios for the best practice component of
the program are also high, and especially high for electrical
equipment, reflecting the higher cost of electricity compared
to natural gas. While there is uncertainty in the cost data
used for the best practice analysis, the cost benefit ratios are
well above unity. This means that costs would have to be
significantly higher for the benefit cost-ratios to fall below 1.
Table 14: Estimated additional cost for cost-benefit analysis
The analysis demonstrates that a realistic MEPS program,
based on regulatory levels already implemented or being
considered elsewhere, could deliver cost-effective and
worthwhile greenhouse and energy bill savings. The benefits
would be even greater if a limited best practice program was
combined with the MEPS program, using the information
collected from the MEPS program, to encourage businesses
to purchase higher efficiency products and to optimise
the overall motor or steam system when purchasing and
installing new equipment (but not existing equipment or
systems).
Product
Estimated additional cost ($/kWh)
MEPS1
Best Practice2
0.04
0.30
0.40
0.45
0.07
0.02
0.02
0.02
0.02
0.02
Pumps
Fans
Air compressor
Industrial chillers
Boilers
The cost-benefit analysis is shown in Table 15. The benefitcost ratios for all equipment MEPS are greater than 1 in both
Australia and New Zealand. The benefit-cost ratio for pumps
is by far the largest. Fans and boilers have the next highest
ratio, followed by air compressors and industrial chillers which
have similar benefit-cost ratios. The benefit-cost ratios for New
Zealand are all higher than for Australia. This partly reflects the
lower discount rate used for the New Zealand analysis, and
also the relatively higher cost of electricity and gas.
Based on the analysis of the costs and benefits and potential
greenhouse savings, the highest priority products for action are
industrial pumps, fans and gas-fired boilers. Air compressors
and industrial chillers are a secondary priority. The highest
priority products are also likely to be the more straight
forward products to regulate, as suitable standards either
already exist or, as in the case of pumps and fans, a significant
amount of work has been undertaken on test standards and
the definition of performance levels in recent years.
Table 15: Benefit-Cost Analysis for Industrial Equipment Energy Efficiency Program
AUSTRALIA - 7.5% discount rate
MEPS
Product
Cost
($M)
Pumps
Fans
Air comp.
Ind. chillers
Boilers
TOTAL
$18.0
$123.1
$26.4
$71.6
$61.1
$300.2
Benefit
($M)
$333.9
$325.2
$50.2
$124.4
$119.4
$953.2
Best Practice
B/C Ratio
18.6
2.6
1.9
1.7
2.0
3.2
Cost
($M)
$15.5
$4.1
$2.2
$1.1
$10.2
$33.0
Benefit
($M)
$550.7
$143.4
$88.0
$42.7
$64.4
$889.3
MEPS & Best Practice
B/C Ratio
35.6
35.0
39.8
39.8
6.3
27.0
Cost
($M)
Benefit
($M)
$33.4
$127.2
$28.7
$72.7
$71.2
$333.2
$884.6
$468.6
$138.3
$167.2
$183.8
$1,842.5
B/C Ratio
26.5
3.7
4.8
2.3
2.6
5.5
NEW ZEALAND - 5.% discount rate
MEPS
Product
Pumps
Fans
Air comp.
Ind. chillers
Boilers
TOTAL
93
Cost
($M)
$2.9
$29.7
$6.6
$17.2
$13.6
$70.0
Benefit
($M)
$83.9
$121.6
$19.4
$46.3
$59.9
$330.9
Best Practice
B/C Ratio
28.6
4.1
2.9
2.7
4.4
4.7
The analysis here is presented from a consumer perspective.
52
Cost
($M)
$2.5
$1.0
$0.6
$0.3
$2.4
$6.7
Benefit
($M)
$138.2
$53.2
$34.0
$15.9
$34.0
$275.1
MEPS & Best Practice
B/C Ratio
54.5
53.7
61.6
61.7
14.3
41.0
Cost
($M)
$5.5
$30.7
$7.2
$17.4
$15.9
$76.8
Benefit
($M)
$222.0
$174.7
$53.4
$62.1
$93.8
$606.1
B/C Ratio
40.6
5.7
7.4
3.6
5.9
7.9
Impact in Australia
9.3 Potential Impact of an Industrial Equipment
Strategy
The estimated potential impact of an industrial equipment
energy efficiency program on industrial energy use in
Australia over a 10-year period is shown in Figure 47, and
the estimated impact on industrial greenhouse emissions
over this same period is shown in Figure 48. The savings are
referenced to the projected BAU electricity and gas use
of the equipment covered95 by the program, and show the
impact of MEPS only, and of a combined MEPS and (limited)
best practice program.
EnergyConsult’s industrial model has been used to provide
an estimate of the potential overall impact of a MEPS
and limited best practice program targeting key industrial
equipment over a 10-year period94. A program covering
pumps, fans, gas boilers, air compressors and industrial chillers
would cover around 24% of industrial electricity use in
Australia and 25% of industrial gas use. In New Zealand, such
a program would cover around 31% of industrial electricity
use and 64% of industrial gas use.
It is estimated that after a 10-year period a MEPS program
could achieve savings of 0.9% (10.2 PJ per annum) of total
industrial electricity and gas use, or 3.9% of the covered
energy use. If supported by a best practice component, the
overall program could achieve savings of 1.7% (18.5 PJ per
annum) of total industrial electricity and gas use, and 7.1% of
the covered energy use.
It’s important to note that this is a preliminary estimate and
gives an indication of the potential maximum savings which
could be achieved over a 10-year period. In practice, not all
equipment is likely to be covered by these measures (MEPS
and a best practice program), any regulations might not cover
all types of each equipment in each category (eg all types of
pumps or fans) or all applications, and the implementation
of any MEPS regulations is likely to be staggered rather than
all equipment being regulated from the same date. Further,
more detailed analysis is required to obtain a more accurate
estimate. The E3 Program uses Product Profiles – detailed
market, technology, regulatory and cost-benefit analysis for
specific items of equipment – as the vehicle for this more
detailed level of analysis.
In terms of greenhouse gas abatement, after 10 years the
MEPS program is estimated to achieve savings of 1.0% (1.5
Mt CO2-e per annum) compared to BAU emissions from
industrial electricity and gas use, or 4.2% savings compared to
BAU emissions from the covered energy use. The addition of
a best practice component could lift savings to 1.9% (2.8 Mt
CO2-e per annum) compared to BAU emissions from total
Figure 47: Estimated Impact of Industrial Equipment Program on Energy Use - Australia
300
250
Covered - elec
Covered - gas
Covered - Total
Covered Total - MEPS
Energy Use (PJ/Yr)
200
Covered elec - MEPS
Covered gas - MEPS
Covered Total - MEPS & BP
150
Covered elec - MEPS & BP
Covered gas - MEPS & BP
100
50
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018 2019
2020
94
The modelling is based on a 10-year program from 2010 to
2020, to give an indication of the energy savings which could be
expected after a 10-year period. Actual savings would depend on
when any measures are introduced.
95
This is the specific use of the equipment, eg electricity use of industrial
pumps or gas use of industrial boilers.
53
industrial electricity and gas use, or 8.0% of BAU emissions
from the covered energy use. Over the 10 year period, the
cumulative greenhouse emissions are estimated to be 9.6 Mt
CO2-e for MEPS, and 18.2 Mt CO2-e for a combined MEPS
and best practice program.
The estimated greenhouse abatement from industrial
equipment MEPS over a 10-year period is shown in
Figure 49. MEPS for pumps and fans deliver by far the
greatest abatement, followed by industrial chillers and air
compressors.
Figure 48: Estimated Impact of Industrial Equipment Program on Greenhouse Emissions - Australia
40
35
Covered - elec
30
Greenhouse Emissions (Mt/Yr)
Covered - gas
Covered - Total
Covered Total - MEPS
25
Covered elec - MEPS
Covered gas - MEPS
20
Covered Total - MEPS & BP
Covered elec - MEPS & BP
15
Covered gas - MEPS & BP
10
5
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Figure 49: Estimated Greenhouse Abatement from Industrial Equipment MEPS – Australia
1.6
1.4
Greenhosue Savings (Mt/Yr)
1.2
1.0
Boilers
Industrial chillers
Air compressors
0.8
Fans
Pumps
0.6
0.4
0.2
0.0
2010
54
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Figure 50: Estimated Impact of Industrial Equipment Program on Energy Use – New Zealand
50
45
40
Covered - elec
35
Energy Use (PJ/Yr)
Covered - gas
Covered - Total
30
Covered Total - MEPS
Covered elec - MEPS
25
Covered gas - MEPS
Covered Total - MEPS & BP
20
Covered elec - MEPS & BP
Covered gas - MEPS & BP
15
10
5
2006
2007
2008
2009
2010
2011
2012
2013
2014
Impact in New Zealand
The estimated potential impact of an industrial equipment
energy efficiency program over a 10-year period on industrial
energy use in New Zealand is shown in Figure 50, and the
estimated impact on industrial greenhouse emissions over
this same period is shown in Figure 51. As for Australia, the
savings are referenced to the projected BAU energy use of
the equipment covered by the program.
It is estimated that after a 10 year period a MEPS program
would achieve savings of 1.8% (1.92 PJ per annum) of total
industrial electricity and gas use, or 4.0% of the covered
energy use. If supported by a best practice component, the
overall program could achieve savings of 3.2% (3.39 PJ per
annum) of total industrial electricity and gas use, and 7.1% of
the covered energy use.
In terms of greenhouse gas abatement, after 10 years the
MEPS program is estimated to achieve savings of 2.9% (162
kT CO2-e per annum) compared to BAU emissions from
industrial electricity and gas use, or 6.0%96 savings compared
to BAU emissions from the covered energy use. The addition
of a best practice component could lift savings to 5.3% (295
kT CO2-e per annum) compared to BAU emissions from
total industrial electricity and gas use, or 10.9% of BAU
emissions from the covered energy use. Over a 10 year
2015
2016
2017
2018
2019
2020
period, the cumulative greenhouse emissions are estimated
to be 1.0 Mt CO2-e for MEPS, and a total of 1.8 Mt CO2-e
for a combined MEPS and best practice program.
The estimated greenhouse abatement from industrial
equipment MEPS over a 10-year period is shown in Figure
52. MEPS for fans and boilers deliver the greatest abatement,
closely followed by pumps. Industrial chillers and air
compressors deliver the lowest greenhouse abatement.
It is important to note that the savings estimates provided
for both Australia and New Zealand are for a program
which has been implemented for only ten years. The life
of the equipment to be targeted is typically in the range
of 12 to 20 years, so the potential savings from both the
MEPS component and the best practice component of the
program would continue to build for another decade or so,
even if the MEPS levels remained stagnant.
Pumps, fans and boilers also account for a significant amount
of energy use in the commercial sector. A MEPS and best
practice program for these products should, therefore, have
spill-over effects in the commercial sector. Based on the same
energy saving projections, this would generate additional
greenhouse savings of 1.2 Mt CO2-e per annum in Australia
and 96 kT CO2-e per annum in New Zealand after a 10-year
period.
96
Greenhouse abatement as a percentage of BAU is higher in New
Zealand than in Australia, because in New Zealand the marginal
greenhouse coefficient for electricity (used to estimate greenhouse
abatement from electricity savings) is somewhat higher than the average
greenhouse coefficient (used to estimate BAU greenhouse emissions).
55
Figure 51: Estimated Impact of Industrial Equipment Program on Greenhouse Emissions – New Zealand
3.0
Greenhouse Emissions (Mt/Yr)
2.5
Covered - elec
2.0
Covered - gas
Covered - Total
Covered Total - MEPS
1.5
Covered elec - MEPS
Covered gas - MEPS
Covered Total - MEPS & BP
1.0
Covered elec - MEPS & BP
Covered gas - MEPS & BP
0.5
0.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Figure 52: Estimated Greenhouse Abatement from Industrial Equipment MEPS – New Zealand
0.20
Greenhosue Savings (Mt/Yr)
0.15
Boilers
Industrial chillers
0.10
Air compressors
Fans
Pumps
0.05
0.00
2010
56
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
9.4 Development of an Industrial Equipment
Strategy
implemented, these MEPS would impact on chillers used in
industrial applications.
As a result of the analysis presented in this Discussion
Paper it is proposed that a 10-year strategy be developed
to consider the inclusion of certain key items of industrial
equipment in the E3 Program which could subject them to
some level of regulation relating to their energy performance.
It is proposed that the strategy move beyond a simple MEPS
approach to include a best practice element, which facilitates
the optimisation of motor and steam system efficiencies
when new equipment is purchased and installed. The key
tools proposed for inclusion under a strategy are:
This discussion paper indicates that air compressors are
a lower priority for MEPS, and it is clear that the greatest
benefits would be achieved through system optimisation
programs targeting existing systems. This suggests that a
‘watching brief ’ should be maintained for air compressors
during the next few years, and that more detailed analysis
not start until the work on pumps, fans and boilers is well
advanced.
1. Energy performance test standards, where possible based
on international standards;
2.Minimum Energy Performance Standards (MEPS) for key
equipment;
3.Mandatory disclosure of key energy performance data for
publication on publicly accessible web sites, and for use in
equipment selection and system optimisation tools;
4. Definition of high energy efficiency levels within
standards, to assist businesses to identify the best
performing equipment. In addition to assisting businesses
to select high efficiency equipment suitable for their
applications this would facilitate the introduction of
government incentives to encourage the uptake of high
efficiency equipment.
Some equipment types might be subjected to all four
measures, while others might only be required to disclose
energy performance data based on standardised tests.
For some products it may be appropriate to implement
voluntary testing and disclosure schemes initially, followed by
mandatory schemes. This approach was used for television
energy labelling and is also proposed for swimming pool
pumps.
Analysis in this discussion document suggests that the
highest priority items for action are clearly industrial pumps,
fans and gas-fired boilers. More detailed analysis of these
products should be undertaken over the next two years,
before developing any detailed regulatory proposals for
consideration by industry and government stakeholders.
These products are also responsible for a significant amount
of energy consumption and greenhouse emissions in the
commercial sector. Thus, the further detailed analysis for
these products would cover their use in both the industrial
and commercial sectors under the banner of ‘non-domestic’
equipment rather than industrial equipment.
Work on industrial chillers will be progressed through the
E3 Program’s Non-Domestic Refrigeration Equipment Strategy,
which is currently under development. The draft Strategy,
released in October 2009 for comment, proposes the
introduction of horizontal MEPS for both compressors and
fan motors used in non-domestic refrigeration systems. If
This discussion paper has specifically excluded industrial
furnaces and ovens from its analysis, partly because many
of these are likely to be custom designed for specific
applications and partly because there has been little
international activity for these products. It is suggested that
these also be the subject of a ‘watching brief ’, with more
detailed analysis a possibility in five to ten years.
A possible 10-year Industrial Equipment Strategy is
mapped out in Table 16. Further detailed work needs to
be undertaken before any regulatory measures can be
introduced. This includes:
• Preparation of a 10-year Industrial Equipment Strategy,
informed by feedback on this discussion document
• Preparation of Product Profiles for each type of
equipment covered by the 10-year Strategy as the basis
of further stakeholder consultation. This includes a more
detailed assessment of the current and likely future
market for the equipment, the current and future energy
and greenhouse impact of the equipment, an assessment
of the energy performance of existing stock and new
products sold, and a review of relevant existing standards
which could be used as the basis for regulations. Another
important role of the Product Profile is to identify the
measures which are appropriate to a specific type of
equipment, and the scope of coverage of any regulatory
measures97;
• The development of a concrete regulatory proposal,
based on the stakeholder feedback from the Product
Profile and if regulatory approaches to driving energy
efficiency improvements are shown to be appropriate;
• A Regulatory Impact Statement (RIS) assessing the
environmental, social and economic benefits and costs of
the proposal. Positive results would progress the proposal
to the Ministerial Council on Energy for a final decision.
97
For example the type, size range and applications of industrial pumps
which are appropriate for regulated MEPS.
57
Table 16: Proposed Timetable for Action
Equipment
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
High Priority
Pumps
Prepare Product Profile
Prepare Proposal &
Regulation Impact
Statement
Standards development
and possible
implementation of MEPS
Fans & blowes
Prepare Product Profile
Prepare Proposal &
Regulation Impact
Statement
Standards development
and possible
implementation of MEPS
Boilers
Standards development
and possible
implementation of
MEPS
Prepare Proposal &
Regulation Impact
Statement
Prepare Product Profile
Medium Priority
Air compressors
Maintain watching
brief on international
developments
Industrial chillers
Work on to be progressed under the NonDomestic Refrigeration Equipment Strategy
Prepare Product Profile
Work program will depend on outcomes of Product Profile
Low Priority
Furnaces and ovens
Maintain watching brief on
international developments
If only pumps, fans and gas-fired boilers are ultimately
regulated as a result of the Industrial Equipment Strategy, this
would still generate very significant savings in the industrial
sector after a 10-year period:
• In Australia MEPS alone could deliver savings of up to
1.24 Mt per annum (6.0 PJ pa) or a cumulative saving
of 7.9 Mt over a 10 year period for an NPV of $576.3
million (at 7.5% discount rate). The addition of a best
practice element would result in total savings of up to 2.4
Mt per annum (16.5 PJ pa) or a cumulative saving of 15.3
Mt.
• In New Zealand MEPS alone could deliver savings of up
to 134 kt per annum (1.7 PJ pa) or a cumulative saving
of 839 kt over a 10 year period for an NPV of NZ$219
million (at a 5% discount rate). The addition of a best
practice element would result in savings of up to 245 kt
per annum (2.9 PJ pa) or a cumulative saving of 1,504 kt.
To ultimately realise the full savings potential from motor
and steam systems, the E3 Program will need to work in
conjunction with and support other government energy
efficiency programs in Australia and New Zealand which are
focussed on facilitating the introduction of best practice into
industry. Development of equipment selection and system
optimisation tools using data collected as part of MEPS and/
or labelling programs could provide valuable support to such
best practice programs.
58
Prepare Product Profile
Work program will depend on outcomes of Product Profile
Consideration should also be given to developing
government programs which specifically aim to optimise
the energy efficiency of motor and steam systems across
industry. The US ITP BestPractices Program provides a good
model for this, as it has an integrated approach which uses
information, training, software tools and incentives.
All steps in this process will be undertaken in conjunction
with affected industry stakeholders. Stakeholder feedback is
now sought to help to shape the final Strategy proposal that
is sent to the Ministerial Council on Energy for Decision. The
key questions are listed in the Executive Summary.
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Water Pumps (in commercial buildings, drinking water
pumping, food industry, agriculture), Report to the
European Commission, February 2008a
AEA Energy & Environment [AEA], Appendix 6: Lot
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[ABARE], Table F – Australian energy consumption, by
industry and fuel, July 2007a
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[ABARE], Projected Total Final Energy Consumption by
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for 10-Year Plan, NAEEEP Motors Industry Forum, 13
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10-Year Plan, NAEEEP Industry Forum, 15 September
2005b
EnergyConsult, Background Paper on Industrial Chillers, for
Sustainability Victoria, 2008a
EnergyConsult, Background Paper on Air Compressors, for
Sustainability Victoria, 2008b
EnergyConsult, Background Paper on Industrial Boilers, for
Sustainability Victoria, 2008c
EnergyConsult, Model of Industrial Energy Use in Australia
& New Zealand, for Sustainability Victoria, 2008d (See
Appendix 1)
Energy Efficiency Working Group [EEWG], Consultation
Paper – National Framework for Energy Efficiency Stage 2,
September 2007.
Equipment Energy Efficiency Program [E3], Switch on Gas:
Revised Work Plan for 2007 to 2007/08, Discussion Paper,
October 2006.
Equipment Energy Efficiency Program [E3], Technical Paper:
Distribution Transformers – Potential to Increase MEPS Levels,
by T.R. Blackburn, October 2007
Equipment Energy Efficiency Program [E3], Consultation
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Standards & Alternative Strategies for Chillers, by Energy
Consult, December 2007.
Equipment Energy Efficiency Program [E3], In from the Cold:
Strategies to increase the energy efficiency of non-domestic
refrigeration in Australia and New Zealand – Draft Strategic
Plan, Mark Ellis & Associates et al, October 2009a.
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Strategies to increase the energy efficiency of non-domestic
refrigeration in Australia and New Zealand – Background
Technical Report Volume 2, Mark Ellis & Associates et al,
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European Commission [EU], Study on Improving the Energy
Efficiency of Pumps, prepared by ETSU, AEAT PLC,
February 2001
Europump, First briefing document on the Europump’s ‘Industry
Commitment to improve the energy performance of standalone circulators through the setting-up of a classification
Scheme in relation to Energy Labelling’, 13/9/2007
Fraunhofer Institute [FI], EuP Lot 11: Fans for ventilation in nonresidential buildings – Final Report, Report to the European
Commission, February 2008.
Garnaut Climate Change Review Draft Report, June 2008.
IBISWorld, Pump and Compressor Manufacturing in Australia
C2866, 2 December 2004.
International Energy Agency [IEA], Industrial motor systems
energy efficiency: Towards a plan of action, 7 July 2006
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Efficiency and CO2 Emissions, OECD/IEA, 2007
International Energy Agency [IEA], Worldwide Trends in
Energy Use and Efficiency: Key Insights from IEA Indicator
Analysis, 2008a
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International Energy Agency [IEA], Energy Technology
Perspectives, 2008b
Malaysian Energy Centre EE and Conservation Guidelines for
Malaysian Industries, July 2007.
McKinsey and Company, An Australian Cost Curve for
Greenhouse Gas Reduction, 15 Feb 2008
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Table E (Gas) and Table G (Electricity), 2009a
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Energy Outlook, 2009b
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[NAEEEP], Analysis of the Potential for Minimum Energy
Performance Standards for Packaged Boilers, by Mark Ellis
& Associates, March 2001a
National Appliance & Equipment Energy Efficiency Program
[NAEEEP], Analysis of the Potential for Minimum Energy
Performance Standards for Packaged Air Compressors, by
Mark Ellis & Associates, March 2001b
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[NAEEEP], Report on the Success of Compressed Air
Programs, by EnergyConsult, February 2002
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[NAEEEP], Energy Labelling and Standards Program
throughout the world, by Energy Efficient Strategies, July
2004
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[NAEEEP], No Action Proposal – Oil Fired Boilers, by
Energy Consult, October 2004a.
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[NAEEEP], Analysis of the Potential Policy Option:
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Compression), by EnergyConsult, October 2004b
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[NAEEEP], Greenlight Australa: A strategy for improving
the efficiency of lighting in Australia 2005 – 2015, by Mark
Ellis & Associates, November 2004.
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[NAEEEP], Joint Work Plan and Policies for the Triennium
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[NAEEEP], Background Report and Options Proposal –
Industrial Energy Efficiency (Draft), by Energetics, 06 May,
2005
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Electric Energy Efficiency Potential Study, by KEMA, 2007
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of the U.S. Industrial Commercial Boiler Population; by
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the European Union – Energy, Emissions, Savings Potential
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by EMET Consultants, February 2004
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LBNL & Resource Dynamics Corporation, 2003
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Appendix 1
Model of Industrial Energy Use in Australia and
New Zealand
EnergyConsult developed a model of energy use and
greenhouse emissions in the industrial (Agriculture, Mining,
Manufacturing) and commercial sectors in Australia and
New Zealand. The model provides a breakdown of energy
use into key industrial equipment, and calculates energy and
greenhouse savings and cost effectiveness estimates for a
range of policy options which could be used to drive energy
efficiency improvements for this equipment.
Conceptual Model
The conceptual approach used in the model is described
below:
The model relies upon ABARE and New Zealand Ministry
of Economic Development (MED) forecasts of energy use
by segment and the NFEE/NZ energy end-use breakdowns
[SEAV Feb & Mar 2004; SV 2007; NZEC 2007] to calculate
the business-as-usual (BAU) energy consumption by segment
and end-use. The estimated energy use of the new and
replacement equipment is used as a proxy for sales and stock
turnover and hence inputs to potential savings. In this way,
the actual stock and sales of equipment are not required
in order to provide the estimated energy savings resulting
from MEPS and other measures which target efficiency
improvements as new equipment is installed. This simplifies
the model and removes the need to assume stock and sales
numbers. The amount of BAU energy used by the new and
replacement equipment is modified by the estimated savings
potential to calculate the impacts of MEPS or other policy
measures.
NZ MED energy outlook
by segment to 2030
ABARE energy by
segment to 2030
Country energy
by segment and
fuel to 2030
End-Use share by
segment (NFEE + NZ)
Technology life,
MEPS/Policy dates,
GHG EF
BAU Energy End-Use
by fuel,
Segment to 2030
Calculated Savings
by End use
(New and replacement)
Estimate High and Low%
savings by End-Use
Tariffs and
incremental costs
of efficiency
Cost/Benefits
Energy End-Use by fuel,
segment to 2030
Policy Energy End-Use
by fuel, segment to 2030
61
Model Categories
Model Inputs and Outputs
The model covers the period 2006 to 2030, and
disaggregates energy use as follows:
The model has been set up to allow the impacts of two
types of energy efficiency policies to be assessed:
CountrIES
• Minimum Energy Performance Standards (MEPS) for new
equipment sold;
• Australia and New Zealand
Sector
• Agriculture
• Industrial (includes manufacturing and mining)
• Commercial
Segment
• Agriculture
• Mining
• Wood, paper & printing
• Chemical products
• Non-Metallic mineral products
• Iron and steel
• Basic non-ferrous metals
• Other manufacturing & construction – includes Food,
beverages & tobacco; Clothing and footwear; Other
metal products; Machinery & equipment; Other
manufacturing
• Commercial
End-use by Fuel
• Pumps – electric
• Fans – electric
• Best practice programs to help companies optimise
the efficiency of motor systems (eg motor + pump)
and steam systems at the time new or replacement
equipment is installed. The savings relate only to the
new equipment which is installed, and do not reflect the
savings which might be possible for a system optimisation
program targeting all existing systems.
The key inputs to allow the modelling of these policy
scenarios are:
• Equipment Life – average useful life of the equipment (see
Table 17 below);
• % Savings - Estimates savings which can be achieved for
each end-use equipment type for both MEPS and best
practice measures;
• Measure implementation period – Allows the Start year
and Finish year for each measure to be varied;
• Energy tariffs – Average tariff for electricity and gas for
Australia & New Zealand (See Table 18);
• Greenhouse coefficients for electricity and gas – the average
electrical coefficient has been used to estimate BAU
greenhouse emissions, and the marginal coefficient has
been used to estimate greenhouse savings (See Table 19
below);
• Equipment costs – Incremental cost of MEPS compliant
equipment compared to average equipment (See Table
20); and
• Government costs – Estimated cost to government of
implementing MEPS or best practice programs;
• Air Compressors – electric
• Industrial Chillers – electric
• Motor Drives – electric
Equipment Type
Average Life (yrs)
• Other – electric
Pumps
Fans
Air Compressor
Industrial Chiller
Boiler
12
15
15
20
15
• Boilers – gas
• Other – gas
62
Table 17: Assumed Average Life of Equipment
Best Practice Program
Table 18: Assumed Average Energy Tariffs
Country
Australia ($AU/TJ)
New Zealand ($NZ/TJ)
Electricity
Gas
$22,222
$29,583
$4,000
$7,770
Table 19: Greenhouse Coefficients for Electricity used in Analysis
Country / Coefficient
Australia – Elec (Av)
Australia – Elec (Marginal)
NZ – Elec (Av)
NZ – Elec (Marginal)
Greenhouse coefficient in selected
years (kT/PJ)
2006
2010
2015
2020
288
61
-
272
265
51
167
250
239
51
111
225
211
51
111
The model calculates the impacts of savings in addition
to the MEPS by applying a savings attributed to the
implementation of a Best Practice Program which focuses on
the savings from the motor system – where motor systems
are optimised for efficiency - and the use of better matched
components. Such a program would build on the data
collected from the MEPS, such as motor and component
size, efficiency and applications to perhaps create motor
system matching applications. As the programme will most
likely utilise voluntary delivery methods such as information,
demonstration, and education/seminar, the savings will
probably not reach the theoretical technical potential,
however significant savings are available.
The costs of the programme are attributed to government
– as the implementation of voluntary programmes requires
sufficient resources to influence and provide advice to the
end-users, and the customers – as the end-user may need to
purchase additional equipment (such as VSDs) or services to
obtain significant energy savings. Some of these costs may
be negative or actual capital savings due to the purchase of
smaller motors.
Table 20: Estimated Cost of Implementing MEPS
Equipment Type
Estimated Cost ($/kWh/yr saved)
Pumps
Fans
Air Compressors
Industrial Chillers
Boilers
$0.04
$0.30
$0.40
$0.45
$0.07
The key outputs from the model are:
• BAU energy use & greenhouse emissions – by country,
sector, segment and end-use equipment;
• Policy energy use & greenhouse emissions – by country,
sector, segment and end-use equipment, for MEPS and
best practice policies;
Footnotes
1
Estimates for pumps and fans are based on cost and savings data
in the EU Energy Using Products analysis for these products.
Estimates for industrial chillers are based on the 2008 RIS for
commercial chillers. Estimates for air compressors and boilers
provided by EnergyConsult.
2
Little data is available to estimate the cost to end-users of best
practice programs. Some measures such as using appropriately
sized equipment could have a negative cost, while some system
improvements can be achieved at very low cost. The initial
estimate provided by EnergyConsult was $0.01/kWh.
• Energy & Greenhouse Savings – by country, sector, segment
and end-use , for MEPS and best practice policies;
• Customer cost-benefit analysis - $ savings and costs from
the customer perspective, as well as the benefit-cost ratio
for a particular NPV;
• National cost-benefit analysis – total national costs
(including government costs), customer savings, as well as
the benefit-cost ratio for a particular NPV.
63