Why industrial customers don’t implement cost-effective energy efficiency opportunities: A closer look at California’s cement industry

Fred Coito, Principal Consultant, KEMA Inc., USA
Daisy Allen, Energy Analyst, KEMA Inc., USA

Keywords

industry, energy efficiency, demand-side management, California, cement

Abstract

Industry uses large amounts of energy and, on paper, there appear to be numerous cost-effective energy efficiency improvements that customers are not implementing. Program planners need to better understand opportunities and barriers in the industrial sector to better design energy efficiency programs geared toward this sector. Case study findings from California’s cement industry are reviewed in light of currently available energy efficiency programs to assess how these programs are succeeding and to offer suggestions for improvement at addressing the most important barriers to increased energy efficiency.

We first examine studies to date addressing this issue, and identify major barriers to industrial implementation of energy efficiency measures. We then narrow our focus to California industrial energy efficiency potential, and find that energy savings of only 5 % in California, an attainable savings based on scoping study results, would save the state 2,600 GWh and 315 million therms per year. If policy makers plan to capture these savings, a thorough understanding of actual industrial energy efficiency practices is needed.

We present the results of a case study analysis of one of California’s largest energy-consuming industrial segments, the cement industry. Energy efficiency practices and decision-making are compared across facilities within this industry and in summary analysis, across California industries. Customers’ energy efficiency decision-making attributes are analysed relative to facility energy efficiency to identify barriers to increased uptake of energy efficiency measures.