Applying the optimum energy saving principle to the main energy using industries: The steel case

Philippe Méral and Jean F. Noël, C3E-METIS: CNRS and the University of Paris

Keywords

Abstract

The proposed European energy and carbon content based tax was developed as part of the fight against the greenhouse effect. The tax will not be applied in the near future, because of the failure of the Rio UNCED Conference. The proposed tax was to be levied in a uniform way on all energy consumption. This presented certain equity disadvantages, particularly for the main energy user sectors, which had already made efforts to improve their energy efficiency. It would seem more efficient to tax these sectors according to how much their actual energy consumption deviates from the energy consumption corresponding to the best available technology (Optimum Energy Saving Principle or OESP). This paper covers the application of the OESP to the steel industry in France. It shows the theoretical and ethical pertinence of this concept as well as its practical consistency with the steel industryÉs energy efficiency. The paper determines the lower limit of energy use. Energy consumption is calculated for three reference plants, which correspond to the three main steel technologies used in Europe. Future data collection will allow a measurement of the energy use performance of each French steel plant and will provide an evaluation of their OESP.

The paper closes with a look at the economic and government instruments liable to attain the goal fixed by energy calculations (Le. taxes, subsidies, marketable rights to consume energy, branch contracts, etc.). It also considers the research required before these instruments can be applied to other sectors and countries.