Energy-Efficiency Market Development The Perspective From China Yonghao Luo Shanghai Jiaotong...

Energy-Efficiency Market Development The Perspective From China

Yonghao Luo

Shanghai Jiaotong University

Visiting Scholar, Battelle Memorial Institute

Earth Technologies Forum

March 25-27, 2002

Washington, DC

Outline

■ Potential for Energy Efficiency

■ Obstacles and Opportunities

■ Proposed Solution to Develop Market

Potential for Energy Efficiency in China

China’s Building Sector

Energy Consumption 25% of total energy

Housing Sector 15% annual growth rate

Commercial Building explosive growth

in tall buildings

Shanghai Pudong

Building Sector Reform

Yangtse River Borderline northern houses are heated (subsidized)

resistance to change

Southern Building Envelope thermal resistance is low

inside temperature condition:

cold in the winter, 0~ -5 ºC

hot in the summer, 32~35ºC

Air Conditioning in the South very popular now, large energy loss

Potential for Energy Conservation in China’s Commercial Buildings

Energy Consumption is Much Higher than International Norms

188 kwh/m2a in Beijing 135 kwh/m2a in Japan

Big Difference among Similar Buildings energy audits for 16 luxury hotels in Beijing

highest energy consumption intensity is three times the lowest

Big Difference between Reality and Potential bad management, lack of automatic systems, and design failures

Commercial Building Big Differences among Similar Buildings

0

40

80

120

160

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

hotel

ene

rgy

cons

umpt

ion

inde

x (Y

uan/

m2)

﹩

＄

Source: Tsinghua Tongfang Human Environment Engineering Company

Commercial Buildings Economic Analysis of Different Improvements

Investment Return Return Time

Management $ 1 $ 10~20 1~2 months

Replace Fans and Pumps $ 1 $ 0.8~1.0 1~1.2 years

Add Automatic Control Systems $ 1 $ 0.3~0.5 2~3 years

Retrofit Whole Systems $ 1 $ 0.2~0.4 3~5 years

Retrofit Construction Material $ 1 $ 0.1~0.2 5~10 years

Source: Tsinghua Tongfang Human Environment Engineering Company

Coal-Fired Industrial BoilersAbout 600,000 Industrial Boilers in China

Use 1/3 of China’s Total Coal Output

Thermal Efficiency Averages Less than 70%

Potential to Improve Efficiency by 15-20% in Many Boilers

Reasons

● Design failure in furnace arches

● Too much excess air

● High stack temperature

● Outdated control system

■ Our team at Jiaotong has successfully renovated over 200 of these boilers at low cost

Industrial Boiler Case Studies(Using Double Herringbone Furnace Arches)

■ A Stoker Boiler in a Paper Mill

after retrofitting furnace arches and duct system

● steam capacity increases from 28t/h to 38t/h

● can burn cheap, local coal

● saves about 200,000 RMB per month, 1 month ROI

■ A Stoker Boiler in a Shipbuilding Company

after retrofitting furnace arches

● thermal efficiency increases from 69.3% to 77.6%

● coal saving 2925 t/a; CO2 reduction 5639 t/a

● 6 month ROI

Inefficient Steam Systems

no condensate return

hot water wasted

A Chemical Plant Case

● saves 175 t / day of steam

from hot water recovery

● saves 20~30 t / day of steam

from condensate recovery

● produces 750kW electricity

from the pressure drop

One year ROI

Obstacles and Opportunities

Obstacles■ Changing Legal and Market Conditions

(Transition to Market Economy)

■ Difficulty in Finding Suitable Partners (Transparency)

■ Financing (ESCO)

■ Different Cultural Background

Opportunities■ WTO Entry Requires Change to International Norms

■ Strong Government Dedication to Develop Economy

■ More Frequent Bilateral Exchanges

Proposed Solution to Develop Market

A Platform to Promote Energy Efficiency in China

● Center and ESCO are combined to form a platform

● Center is keystone to establish leverage

Relationship between Center, ESCO and Financing

● Herringbone arch can save at least 5% energy, less than 1/2 year ROI

● It can open the door with clients for further projects

Strategy to Develop Market with Proprietary Technology

● model technology for market pioneer

● establish model sector by integrating technologies

● select cities to establish new mechanism for energy saving

Strategy to Develop Market with Models

Examples and Suggestions

My Grandfather’s Story

bean oil lamp kerosene lamp

Mobil Co. Distributed Kerosene Lamp for free to Open the Kerosene Market in China

My Sister’s Story

increase in rural houses solar hot water system

■ Changes in China often occur in “mass shifts”

Room Renovations■Combine EE with Style to Sweep the Market

Dr. Yonghao Luo

Shanghai Jiao Tong University

yhlshanghai@yahoo.com

yhluo@online.sh.cn

Visiting Scholar at Pacific Northwest National Laboratory (Battelle) until

26 April 2002

结合本专业或家乡情况，

写一篇有关可持续发展的论文。

题目自定，第 9周交。