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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Energy Efficiency Improvement by Introducing Energy Management and Contol Systems at Factories in Shaanxi Province, China
FYFY 2011
Main Implementing EntityYaskawa Electric Corporation
FS PartnersShaanxi Province Development and Reform Commission
Shaanxi Province Economy and Information Commission
Smart Energy Co., Ltd.
Location of Project ActivityChina
Category of Project ActivityEnergy Efficiency
Summary of FS ReportPDF (1.2MB)
Description of Project/ ActivityThis project assumes the implementation of efforts to reduce greenhouse gas emissions through the introduction of a Energy Management and Control Systems (EMCS) , with the target of this effort being a group of large-scale factories in China’s Shaanxi Province. A survey concerning the feasibility of a bilateral offset credit mechanism (BOCM) for the project is to be carried out.
The sites where this project is to be implemented are Iron and Steel Manufacturing Enterprise A (a blast furnace steelworks) and Nonferrous Metals Enterprise B (coke and zinc manufacturing and processing), both in Shaanxi Province. Both companies belong to business groups representative of Shaanxi Province, and consume particularly high energy.
With regards to the targets for introduction and application, the hypothesized introduction of EMCS by this project is to be to non-manufacturing facilities powered and operated by incoming electricity (these facilities are to include ancillary equipment that supplies air and cool water to production facilities as well as air conditioning and lighting for employee benefit as opposed to for immediate manufacturing purposes). In order to reduce the waste resulting from electricity supply and demand mismatches and as well as from between multiple supply facilities at the point of application in these plants, both supply- and demand-side facilities are to be made to cooperate with each other with energy conservation accomplished by optimum control of the entire process. This EMCS consists of measurement functions for related information and data, acquired information, database and calculator functions, control functions that carry out command-based controls, dashboard functions that carry out visualization and application management of information collected en masse, and other functions. The EMCS is a technique for implementing optimization by repairing or otherwise upgrading existing facilities; it thus differs from individual measures to update to new, highly efficient facilities.
With the introduction of EMCS, load-following becomes feasible for the electricity consumption of the targeted facilities, while standby electricity requirements are also reduced, resulting in an anticipated electricity savings for each factory of about 10%. This in turn would result in a reduction in greenhouse gas emissions related to grid power.
In China, the individual facilities measures mentioned above are becoming more widespread. However, because repair and instrumentation engineering technology hasn’t improved, the EMCS introduction has not become prevalent. However, there has been a shift towards introducing information and data measuring functions as well as dashboard functions that carry out visualization and application management of collected information and control status to local production facilities. This is the place where Japan’s signature technologies, such as engineering technology for repairs and instrumentation, as well as related products, are to join together in a collaborative effort to create a model for energy conservation by means of EMCS, thus serving as a blueprint for the implementation of pertinent projects and activities.
Reference Scenario and Project/ Activity BoundaryReferring to data that the National Development and Reform Commission – which has jurisdiction over China’s energy policies – presented, the reference scenarios for the applicable projects and activities are felt to be as follows. China will improve its energy efficiency by 1% every three years over the 45-year period stretching from 2005 to 2050. The efficiency standards/status of all applicable facilities involves the continued use of the existing applicable facilities without the introduction of EMCS”
The target of introduction of EMCS via the applicable projects and activities is non-production facilities powered and operated by electrical power inputs (ancillary equipment that supplies air, cold and warm water and other inputs to plant and equipment, as well as equipment not directly related to production). With regards to the energy-saving effects of introduction aimed at these targets, these are derived from the energy differences before and after measure enactment. Furthermore, with regards to the results of individual measures that do not include energy conservation by means of controls, these will be removed from the overall results.
Monitoring Methods and PlanMonitoring target includes power consumption within the project boundary, a factor referred for specific energy consumption (e.g. production amount), operation hours, and grid electricity carbon emission rate. They are monitored and recorded manually or electronically.
GHG Emissions and ReductionsGHG emission reduction of 80,213t-CO2 is estimated if the reduction measures are installed to the enterprise A, which basically emits 466,333t-CO2 for grid power consumption.

GHG emission reduction of 9,671t-CO2 is estimated if the reduction measures are installed to the enterprise B, which basically emits 48,028t-CO2 for grid power consumption.
MRV System for GHG ReductionsReference emission amount: Energy consumption of the boundary is changing every time in response to another factor (e.g. production amount). Looking at specific power consumption rate (power consumption / the factor), we assume in the reference scenario, the rate keep certain value. The rate is calculated by monitoring in a certain period. The calculated formula gives reference energy consumption when the amount of the factor in the project is specified. When reference energy consumption is calculated, we can specify reference emission amount
Project emission amount: Project power consumption amount is specified by project monitoring, then project emission amount is to be calculated.
Reduction amount is calculated by the difference between the reference emission amount and the project emission amount.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)No significant impact is to be occurred in the relevant activities and projects.
Financial PlanningCost/benefit level for installing the EMCS energy saving measures to a targeted factory without carbon credit income is 3 to 4 years. If the carbon credit income for the installation is realized, cost is reduced by 20%. The additional income is quite helpful for the installation related venders.
Another option of a financial support for the project is ESCO scheme, which allows a user avoid initial investment.
Introduction of Japanese TechnologyControl equipment and measuring instruments are Japanese technologies central to this project. Retaining quality in local energy conservation projects and strategic system solutions are important to maintaining and popularizing the competitiveness of these technologies in energy conservation.
(i.e. Improvement of Local Environmental Problems)
In regard to the effects the implementation of this project will have on anti-pollution measures, in China the reduction of SO2 emissions by curbing coal-derived thermal power generation is a serious issue, and a decrease in these types of air pollutant emissions through conservation of electricity appears promising. However, it is difficult to obtain information on local emission factors for these substances timely.
Contribution to Sustainable Development in Host CountryNot only will energy consumption be reduced through the introduction of control technologies and by switching from batch processing to a continuous automatic control process, but the optimization of resources such as input materials will also be promoted, making it possible to contribute to the cultivation of comprehensive sustainable manufacturing that includes energy and resources. This kind of resource efficiency is a crucial policy pillar in China. Future studies will analyze the working environment and employment, and the position and efficiency of the global market for this country and industry, which are thought to be factors impacting their popularization.

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