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Polish Energy EfficientMotor Programme

PEMP

Szymon Liszkas.liszka@fewe.pl

Krzysztof Brzoza-Brzezinakbrzezina@kape.gov.pl

www.pemp.pl

www.pemp.pl

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Organizations involved in development and implementation of the PEMP

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• Poland - 38.7 million inhabitants and area of 312,000 square kilometers.

• From 1991 to 2003, GDP in Poland increased by 64,7 per cent (based on 2003 fixed prices).

• The primary energy productivity increased from 118,3 PLN//GJ in 1991 to 203,4 PLN/GJ in 2002.

• The energy intensity of GDP in Poland decreased from 0,79 MWh/1000 USD in 1998 to 0,61 MWh/1000 USD in 2003.

• Electricity production 151,7 TWh (2003).

• Specific CO2 emmission factorr for electricity generation is 1,06 kg/kWh.

• Electric motor systems are responsibile for 40 – 50 per cent of all electricity consumed in Poland.

www.pemp.pl

Project background

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Project background

Poland - CO2 emmission 318 mln ton (2001)

19%

19%62%

electricity generation for motor system electricity generation for other purpose

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• the technical potential for energy efficiency improvement of electric motor systems in Poland is large in both absolute and relative terms;

• energy efficiency increases could substantially reduce domestic GHG emissions in Poland, thereby supporting Poland’s activities as a party to the UN Framework Convention on Climate Change (UNFCCC);

• there is great economic potential for energy efficiency improvements with low payback periods that meet the usual investment criteria. However, manufacturers have reported that almost no energy efficient motors have been sold recently in Poland. Therefore, it is clear that these investments face substantial barriers;

www.pemp.pl

Project rationale

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• a large economic potential exists with higher pay-back period, which could be exploited by financial incentives lowering the pay-back period;

• the manufacturing industry, the energy and water sector, and the mining industry are key sectors, because they show the largest economic potential for efficiency improvements.

• lack of national promotional initiatives and lack of funding for such activities;

• finally good experience with PELP - Polish Efficient Lighting Project (transformation of market of energy efficient lighting sources);

www.pemp.pl

Project rationale

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• The PEMP is five years programme supported by Global Environment Facility,

• it concerns electric motor systems (motor, controls, transmission, driven machinery: pumps, fans, compressors, conveyors, etc.),

• it is intended to utilize the economic potential for energy efficiency improvement in Polish economy,

• reduction of electrical energy consumption – translates to the reduction of greenhouse-gases emission from power plants,

• PEMP has been located in GEF Focal Area of Climate Change.

www.pemp.pl

PEMP what is it?

Expected results

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• climate change goal: reduce domestic GHG emissions by 832 thousand tons CO2 by 2008 and 3.7 million tons CO2 by 2013;

• energy efficiency goal: reduce electricity consumption in motor systems by 55.7 GWh in 2008 and 231.6 GWh in 2013;

• ecological goal: reduce emission of air pollutants - dust, NOx, SO2

• economic goal: introduce to the market a new generation of energy-efficient motors and achieve their 15% share in total motor sales over 5 years, increase the number of adjustable speed drives, activate market niches for manufacturing and services of ca. 90 million PLN.

www.pemp.pl

PEMP activities

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• The first major activity focuses on building capacity and raising awareness by providing information and services related to energy efficient electric motor systems.

• The second major activity involves demonstration projects to establish and showcase the technical and economic benefits of energy efficient motor systems.

• The third major activity has the objective of stimulating market transformation and competition through a financial incentive mechanism.

• The fourth, a policy component.

www.pemp.pl

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Building capacity and awareness raising

PEMPCENTER

Support of other PEMP components: financial incentive mechanisms,demonstration projects and developing mechanisms of energy

efficiency policy in industry for energy efficient drives

Generate and disseminatemarket information onenergy efficient drives

Provide technical and businessadvisory services for pilot projectsand business project development

Establish and operatean advisory system for

the energy efficient motors market

Developing new servicebusinesses and financial

mechanisms

Demonstration projects

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Revolving Fund

Modernization ofelectric drives in sewage treatmentplant and water

pumphouse

Exchange oflarge motorsystem inthe mine

Exchange ofelectric motors

with more efficient one

in chemical plant

Modernization ofelectric drives

and energymanagement

system

water supplyand sewage

treatment

generation anddistribution of

steam, hot waterand electricity

manufacturingsector

miningsector

At least 20 implementations by year 2009

The sectors considered to have the highest probability of success

Financial incentives

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Sale of motors

Present stateDuring the PEMP program (4 years) After

15%

S S

EEEE

Financial incentives

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Cost of motors

Present stateDuring the PEMP program (4 years) After

KEE

KS ca. 0.2 Ks

Part of differential costKEE – KS will be subsidizedS SEE EE

Policy component

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• increase knowledge of industrial energy efficiency policy among decision-makers,

• develop a national policy for industrial energy efficiency,• develop schemes for the labelling, Long Term Agreements

(LTA) and Best Practice Initiatives (BPI),• link and co-ordinate with other energy efficiency programmes.

www.pemp.pl

Implementation

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• The PEMP implementation phase has started in the year 2004,• The PEMP Center is establisched and operate,• First demonstrations are under implementation, • The financial incentive mechanism is delayed.

www.pemp.pl

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