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PRESENTATION OUTLINE
Introduction
Definitions
Why Energy Efficiency
Companies Audited
Audit Findings
Recommendations
Way Forward
06/03/2015 2
INTRODUCTION
Zambia’s economy growing very favorably (6.5% :2011)
Industrial & Commercial sector consumes about 20% of the total
electricity in Zambia (49% Mining)
Electricity demand strongly correlated to economic growth
Electricity is a key driver of economic growth as it is a major input in
all major social and economic sectors; domestic, agriculture, mining,
manufacturing, and tourism
Manufacturing as a potential economic activity for the country heavily
depends on electricity
Recently generation challenges due to low water levels
06/03/2015 3
INTRODUCTION
The Zambia Association of Manufacturers (ZAM) is keen to implementmeasures that will help the Zambian local industry to conserve andutilize energy more efficiently.
Supported by the Embassy of Finland in Zambia through the Funds forLocal Cooperation (FLC), the Project aims to
a) Promote the conservation and efficient utilization of energy forproduction in the manufacturing sector thereby contributing to costsaving and environmental sustainability.
b) Assess energy utilisation and management practices & determine thelevel of energy efficiency, wastage and implications oncompetitiveness
06/03/2015 4
INTRODUCTION
c) To assess the current energy technologies being used and recommend better (efficient, environmentally friendly) technologies
d) Build ZAM secretariat’s capacity to survey and provide energy management consultancy
e) Provide actionable recommendations for replication in other sectors
f) Assist firms comply with the newly set power factor target (0.92)
Under this programme ZESCO carried out energy audits for someCopperbelt based ZAM affiliate companies
This presentation reports on the findings of these audits.
06/03/2015 5
DEFINITIONS
Energy Efficiency
Ratio or other quantitative relationship between an output ofperformance, service, goods or energy and an input of energy
Energy Audit
Verification, monitoring and analysis of use of energy includingsubmission of technical report with recommendations for improvingenergy efficiency with cost benefit analysis
Energy Management System
Set of interrelated or interacting elements to establish an energy policyand energy objectives, and processes and procedures to achieve thoseobjectives
06/03/2015 6
Dwindling energy resources especially fossil fuels
Concerns about environment and climate change
IEA has coined Energy Efficiency as the “Hidden Fuel”
Article 5.9, Energy Management, in the Energy Policyof 2008 seeks to promote efficient use of energyresources in all sectors of the economy
Government incentives through SIs that waive duty onenergy efficient products and equipment
Legislation – Zambian Grid Code
Hence need to manage energy
WHY ENERGY EFFICIENCY
06/03/2015 7
COMPANIES AUDITED
23 Companies available for audit but the following have beendone between February & March on the Copperbelt
NAME LOCATION PRODUCT TYPEANNUAL ENERGY CONSUMPTION
(GWh)
ANNUAL ENERGYCOST
(ZMW)
SCAW KITWE STEEL BALLS &CASTINGS
23.98 8,847,320.27
ZAMEFA LUANSHYA COPPER & ALLUMINIUM CABLES
21.5 5,176,584.55
NONFERROUS NDOLA STEEL CASTINGS 0.416 217,121.56
MATALLOY LUANSHYA FERROSILICON 17.8 4,593,027.63
SKF KITWE STEEL FABRICATION 0.144 44, 794
ART NDOLA STEEL WIRES 0.198 74,173
06/03/2015 8
No formal energy management system exists
No awareness of energy management among employees
Poor maintenance regimes-multiple system leakages in waterand air
Office lighting and air conditioners observed on even whenoccupants not present
Use of non energy saving lights and no automatic switchingmechanism for external lights
Power factor okay during normal operations (0.98) whenrunning capacitive loads but low during maintenance (0.4)from Friday to Sunday during offloading and loading
AUDIT FINDINGS - X
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High harmonics (9.4%) observed above the 8 % internationalthreshold
Furnaces, consuming 80% of total energy are run openwithout hoods. This reduces efficiency as most energy is lostin form of heat
Non essential units like pumps continue to run even duringnon productive hours e.g maintenance
There is no process flow studies to ascertain energyinputs/production outputs. Thus opportunities to de-rateequipment or eliminate extra capacity units are missed.
AUDIT FINDINGS - X
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Use of transparent roofing of factory observed to allow naturallighting
All 15 tonnes cranes have VSDs incorporated, thus ensuringoptimal use of energy.
There is willingness from top management to support thesystem
AUDIT FINDINGS - X
06/03/2015 11
Transparent roofing observed on the entire factory
Power factor of 0.94, power factor correction equipment withfilters installed
Apparent power observed to be almost equal to the actualpower, thus this system is efficiently run
Automated switches for external lights are functional thuseliminating manual intervention
There is willingness from top management to support thesystem
Observed installed non-energy efficient lighting
AUDIT FINDINGS - Y
06/03/2015 12
ART, SKF and Non-Ferrous Metals
Power factor too low 0.3
Actual consumption too low compared to declareddemand
No energy efficient lighting
No automated switches for external lights
There is lack of appreciation of the energy costs bytop management
Inadequate diagnostic equipment for artisans
AUDIT FINDINGS - OTHERS
06/03/2015 13
CHALLANGES
During the exercise, the following challenges were enountered:
Time of audit was too short and could not provide data representative enough to make recommendations
90% of clients audited could not complete questionnaires and looked reluctant to provide some company data on grounds of mistrusts
Power quality tools were not enough as hey had to be rotated between the various clients
Companies lack updated equipment inventory
Low tariff affects pay back period
1806/03/2015
RECOMMENDATIONS
The following are some of the recommendations that should set a basis for review in the future audits to be conducted
All companies audited need to form functional energy audit teams with clear goals embedded in the company policy
Training of personnel thus providing awareness on energy management initiatives and providing of incentives to deserving employees
Phase out non energy efficient lights by replacing them with CFLs , LEDs
Installation of automated switching devices such as sensors in offices and photocells for external lights
Invest in power factor correction equipment with filters
1906/03/2015
RECOMMENDATIONS
All furnaces must be run with the hoods on top to reduce loss of heat by convection
During non productive hours, non essential equipment must be switched off
There is need ensure thorough maintenance by eliminating all leaks on pumps, pipes etc. for both water and compressed air
Invest in power quality equipment and training Use of transparent roofing sheets in factories and
warehouses, so as to avoid using electric lights during day time. (Industrial, Commercial)
Review systems to ascertain areas of opportunity for savings
Sensitize employees on costs particularly energy costs.
2006/03/2015
WAY FORWARD
Follow up audits on copperbelt firms
Persuade industries to invest in energy efficiency
Intensify planned annual or half yearly audits to
review implementation
Hold Energy Efficiency sensitization workshops with
stakeholders and ZAM
Sensitization on low power factor surcharge
2106/03/2015
END - THANK YOU
06/03/2015 22