Improving Energy Efficiency in Industrial Energy Systems: An Interdisciplinary Perspective on Barriers, Energy Audits, Energy Management, Policies, and Programs

162 Pages·2013·2.222 MB·English

by  Patrik Thollander, Jenny Palm (auth.)

Improving Energy Efficiency
in Industrial Energy Systems
Patrik Thollander Jenny Palm
•
Improving Energy
Efficiency in Industrial
Energy Systems
An Interdisciplinary Perspective on Barriers,
Energy Audits, Energy Management,
Policies, and Programs
123
Patrik Thollander Jenny Palm
Department of Management Department of Thematic Studies
and Engineering LinköpingUniversity
LinköpingUniversity SE-58183
SE-58183 Linköping
Linköping Sweden
Sweden
ISBN 978-1-4471-4161-7 ISBN 978-1-4471-4162-4 (eBook)
DOI 10.1007/978-1-4471-4162-4
SpringerLondonHeidelbergNewYorkDordrecht
LibraryofCongressControlNumber:2012938205
(cid:2)Springer-VerlagLondon2013
Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof
the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor
informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar
methodology now known or hereafter developed. Exempted from this legal reservation are brief
excerpts in connection with reviews or scholarly analysis or material supplied specifically for the
purposeofbeingenteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthe
work. Duplication of this publication or parts thereof is permitted only under the provisions of
theCopyrightLawofthePublisher’slocation,initscurrentversion,andpermissionforusemustalways
beobtainedfromSpringer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyright
ClearanceCenter.ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt
fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
While the advice and information in this book are believed to be true and accurate at the date of
publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor
anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with
respecttothematerialcontainedherein.
Printedonacid-freepaper
SpringerispartofSpringerScience+BusinessMedia(www.springer.com)
To my dear wife Sara for all the support
throughout the years, for being such a
precious jewel, a wonderful wife and my very
best friend! Great thanks also to my lovely
children David, Johannes, Hanna, Simon,
Lina, and Josefin
PT
To my dear husband Jonas, and to our
lovable children Kia and Oliver, for all the
laughs and great patience during the periods
of never-ending writing
JP
This book is based on work conducted within the interdisci-
plinary post-graduate school Energy Systems. The national
Energy Systems Programme aims at creating competence in
solving complex energy problems by combining technical and
social sciences. The research program analyzes processes
for the conversion, transmission and utilization of energy,
combined together in order to fulfill specific needs.
TheresearchgroupsthatparticipateintheEnergySystemsProgrammearethe
Department of Engineering Sciences at Uppsala University, the Division of
Energy Systems at Linko¨ping Institute of Technology, the Department of
TechnologyandSocialChangeatLinko¨pingUniversity,theDivisionofHeat
andPowerTechnologyatChalmersUniversityofTechnologyinGo¨teborgas
well astheDivisionofEnergyProcessesattheRoyalInstituteofTechnology
in Stockholm.
www.liu.se/energi
Preface
This book has been written within the Swedish interdisciplinary post-graduate
Energy Systems Program. The authors would like to thank all our colleagues
within the programme; without you this book would have never been written.
SincerethanksalsototheSwedishEnergyAgencyforfundingtheEnergySystems
Programme.Wealsowanttothankallourrespondentsduringtheyearswhohave
contributed with their invaluable knowledge and experiences to our projects.
Wefurthermorewouldliketoexpressourgratitudetoallourcolleaguesatour
divisions at Linköping University, the divisions Energy Systems and Technology
and social change (Tema T). Thank you!
The authors would also like to express thanks to all the colleagues who have
read and made suggestions for improvements of earlier drafts of the book. In
particular, thanks to the seminar group TEVS at Tema T.
We would like toexpress our gratitude toward the coauthors of previous years
of published research findings, in particular Dr. Patrik Rohdin, Dr. Mikael
Ottosson,AssociateProfessorMatsSöderström,AdjunctProfessorErikDotzauer,
Per-Erik Johansson, Professor Stig-Inge Gustafsson, Professor Tomohiko Sakao,
Professor Bahram Mosfegh and Professor Kajsa Ellegård. Special thanks to
Dr.PatrikRohdinforournever-endingdiscussionsinthepositivesense,onhowto
promote energy efficiency, systems aspects and barriers etc. Moreover, special
thanks to Dr. Mikael Ottosson for his joint efforts over the years.
vii
Contents
1 Setting the Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 Aim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Perspectives on Energy Systems . . . . . . . . . . . . . . . . . . . . . . 2
1.3 An Interdisciplinary Approach to Efficiency in Industry. . . . . . 4
1.4 Sustainability Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.5 Contextualizing Energy Efficiency in Industry. . . . . . . . . . . . . 7
1.6 Industrial Small- and Medium-Sized Enterprises . . . . . . . . . . . 10
1.7 Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.8 Organization of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2 Improving Energy Efficiency in Industrial SMEs. . . . . . . . . . . . . . 15
2.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.1.1 Unit Process Categorization . . . . . . . . . . . . . . . . . . . 16
2.2 Energy Use in Various Industrial Sectors . . . . . . . . . . . . . . . . 16
2.3 Energy Use and Technical Potential for Improved
Energy Efficiency in Industrial SMEs. . . . . . . . . . . . . . . . . . . 18
2.3.1 Electric Motor Systems. . . . . . . . . . . . . . . . . . . . . . . 20
2.3.2 Pumping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3.3 Compressed Air. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3.4 Ventilation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3.5 Space Heating and Cooling. . . . . . . . . . . . . . . . . . . . 21
2.3.6 Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.3.7 Internal Transport . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.3.8 Hot Tap Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.4 Energy Efficiency Potentials in Industry. . . . . . . . . . . . . . . . . 23
2.4.1 Importance of a Systems Perspective with Regard
to Improved Energy Efficiency . . . . . . . . . . . . . . . . . 23
ix
x Contents
2.5 Energy Audits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.5.1 Effective Industrial Energy Audit Programs . . . . . . . . 25
2.5.2 Important Aspects of Industrial Energy
Audit Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.6 Realizing the Potential: The Company Perspective. . . . . . . . . . 29
2.7 Energy Efficiency: Why Not? . . . . . . . . . . . . . . . . . . . . . . . . 31
2.7.1 The Rebound Effect. . . . . . . . . . . . . . . . . . . . . . . . . 31
2.8 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3 Barriers to Energy Efficiency: Theoretical Baseline, Previous
Research, and Methodological Approaches . . . . . . . . . . . . . . . . . . 35
3.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.2 Energy Policy Decision Making and Barriers
to Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3.3 Market Forces and Market Failures . . . . . . . . . . . . . . . . . . . . 36
3.4 The Energy Efficiency Gap: What Does it Mean?. . . . . . . . . . 38
3.5 Barriers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.6 Market Failures: Economic Barriers. . . . . . . . . . . . . . . . . . . . 41
3.6.1 Imperfect Information. . . . . . . . . . . . . . . . . . . . . . . . 41
3.6.2 Adverse Selection . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.6.3 Principal–Agent Relationships. . . . . . . . . . . . . . . . . . 42
3.6.4 Split Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.7 Nonmarket Failures: Economic Barriers . . . . . . . . . . . . . . . . . 43
3.7.1 Hidden Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
3.7.2 Limited Access to Capital. . . . . . . . . . . . . . . . . . . . . 44
3.7.3 Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.7.4 Heterogeneity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.8 Behavioral Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.8.1 Form of Information. . . . . . . . . . . . . . . . . . . . . . . . . 45
3.8.2 Credibility and Trust . . . . . . . . . . . . . . . . . . . . . . . . 45
3.8.3 Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.8.4 Inertia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.8.5 Bounded Rationality. . . . . . . . . . . . . . . . . . . . . . . . . 46
3.9 Organizational Barriers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.9.1 Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.9.2 Culture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.10 Methodology Approaches to Studying Barriers . . . . . . . . . . . . 47
3.10.1 Various Ways of Categorizing Barriers
to Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . 47
3.10.2 Research Design of Studies of Barriers
to Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . 48
3.10.3 Examples from Barrier Studies . . . . . . . . . . . . . . . . . 49
Contents xi
3.11 Barriers Not Fully Explaining the Existence of the
‘‘Energy Efficiency gap’’ . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.11.1 Distortions in Energy Prices . . . . . . . . . . . . . . . . . . . 52
3.11.2 Various Perspectives on Energy. . . . . . . . . . . . . . . . . 52
3.11.3 Government Fiscal and Regulatory Policies . . . . . . . . 52
3.11.4 Supply Infrastructure Limitations. . . . . . . . . . . . . . . . 53
3.11.5 Codes and Standards . . . . . . . . . . . . . . . . . . . . . . . . 53
3.11.6 Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.12 Promoting Energy Efficiency Through Energy Services . . . . . . 54
3.13 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4 Sociotechnical Perspectives on Technological Development . . . . . . 61
4.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.2 Energy as Sociotechnical Systems . . . . . . . . . . . . . . . . . . . . . 62
4.3 Innovation Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
4.4 Transition from Multi-Level Perspective. . . . . . . . . . . . . . . . . 63
4.4.1 Sociotechnical Regimes . . . . . . . . . . . . . . . . . . . . . . 64
4.5 Institutions as a Theoretical Concept . . . . . . . . . . . . . . . . . . . 66
4.6 Communities of Practice. . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
4.7 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5 Barriers to Energy Efficiency from a
Sociotechnical Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.2 Information: Imperfect and Asymmetric Information,
Adverse Selection, Form of Information, Credibility, Trust. . . . 74
5.3 Financial Uncertainties: Principal–Agent Relationship,
Split Incentives, Limited Access to Capital, Risk. . . . . . . . . . . 75
5.4 Rationality: Bounded Rationality, Hidden Costs . . . . . . . . . . . 76
5.5 Heterogeneity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5.6 Values: Inertia and Culture. . . . . . . . . . . . . . . . . . . . . . . . . . 78
5.7 Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
5.8 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
6 Managing Energy Efficiency in Industry: Theory and Practice . . . 85
6.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
6.2 Energy Management in Industry: Previous Research . . . . . . . . 87
6.3 Considering the Complexity of a System:
A Need for Methodological Change. . . . . . . . . . . . . . . . . . . . 89
6.4 Transition in Organizations. . . . . . . . . . . . . . . . . . . . . . . . . . 91