Spreading the word – an online non-energy benefit tool

Panel: 2. Sustainable production design and supply chain initiatives

This is a peer-reviewed paper.

Authors:
Erik Gudbjerg, Your Energy, Denmark
Kirsten Dyhr-Mikkelsen, Ea Energy Analyses, Denmark
Christina Monrad Andersen, Lokalenergi Handel A/S, Denmark

Abstract

Many people around the world have been and are calculating the potential for energy savings both on customer level and on country level. The result is more or less the same – If the acceptable payback time is up to 4 years then the potential is 10-15% savings. So why are industrial companies not keen to “harvest their share”? Have we forgotten something?

When energy consultants and industrial companies discuss energy efficiency (EE) projects the potential energy savings are quite naturally in focus. But frequently the value of secondary ancillary effects of these projects is just as high or even higher. Such secondary ancillary effects are typically referred to as non-energy benefits – NEBs – although these may also be negative. Examples are reduced waste, reduced emissions, reduced maintenance costs, a better working environment, and reduced production downtime.

NEBs are traditionally not included in EE project implementation economics since there is no commonly recognised method for calculating their value, nor has the area been prioritised. However, specific research indicates that if NEB are included, the value of energy savings can often be multiplied by a factor of 2.5, and that, therefore, the true value of energy saving projects might be 2.5 times higher than otherwise thought. Access to information on NEBs and their value might thus lead to higher acceptance and implementation of EE projects.

This paper presents a method for valuation of NEB and a web-based tool for collection and determination of NEBs connected to EE projects. Visualisation of NEB increases probability that company decision-makers will implement EE projects. The value of each NEB is rated relative to the perceived value of the EE improvement as seen by the company decision-maker. It may also help the company energy manager, sales person, engineer, etc. to place EE projects on the agenda and thereby, hopefully, increase the numbers of projects implemented.