Strategic Plan - Institute for Industrial Productivity

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IIP Strategy in India Perform, Achieve and Trade (PAT) In 2011, India introduced the market-based trading scheme Perform, Achieve, and Trade (PAT) to increase the cost effectiveness of energy efficiency improvements. 478 enterprises in nine energy-intensive sectors (including power, iron and steel, cement, pulp and paper, and fertilizer) are required to reduce their energy costs by target amounts by 2014. Upon certification, companies exceeding their targets may accrue business benefits by trading their certificates; companies that do not meet their targets will either buy certificates or pay a penalty. MSMEs Micro, small, and medium enterprises (MSMEs) often possess significant opportunities for improving their energy efficiency, yet they lack the needed expertise and financial resources. A range of strategies can help these businesses capitalize on opportunities to gain a competitive edge. Carefully designed interventions can substantially mitigate CO 2 emissions as well as deliver diverse co-benefits. Country snapshot: Despite considerable progress, the energy intensity of India’s industrial sector remains relatively high. Energy performance varies widely within the subsectors due to the wide range in plant vintage, production capacity, level of technology, quality of raw materials, and product mixes. In the cement and fertilizer sectors, for example, India has some of the best-performing plants in the world. This high bandwidth in energy efficiency poses a challenge to policy makers in designing effective and targeted policies. The Energy Conservation Act (ECA) of 2001 established the Bureau of Energy Efficiency (BEE), set up energy efficiency standards by product/process, required energy audits by an accredited auditor, and made certified energy managers mandatory in energy-intensive industries. In 2011, the government launched its ambitious Perform, Achieve, and Trade (PAT) scheme, which combines regulation with a flexible market mechanism. In addition to the energy-intensive sectors covered under PAT, micro, small, and medium enterprises (MSMEs) constitute another significant industry segment with many energy-intensive subsectors in which the cost of energy forms a sizeable share of total production costs. These MSMEs represent a tremendous opportunity to improve energy efficiency and mitigate GHG emissions through technology upgrades, modernization, and adoption of better energy management practices. Goal: Drive a 3.5% annual reduction in energy intensity in India’s energy-intensive industries through 2020. Government IIP will engage with BEE and other relevant government agencies, banks, regulators, and utilities to evolve an environment conducive to the success of India’s PAT initiative. IIP activities will similarly pave the way for increased use of alternative fuels and raw materials (AFR) in energy-intensive industries, such as cement, and will facilitate development of policies that complement effective implementation of PAT. IIP will also provide informational resources to support BEE’s efforts to promote energy efficiency across the MSME sector. Industry IIP will work with industry associations, selected industrial clusters, and large corporate groups and their suppliers to build technical capacity, provide essential tools, and promote implementation of industrial energy efficiency best practices. These efforts will focus on: (1) developing the major industry associations as change agents, (2) demonstrating intelligent bundling of medium-scale projects, (3) creating knowledge exchange platforms on energy themes, (4) piloting a greening of the supply chain, and (5) developing effective, easy-to-use tools to help industry continuously improve energy performance. Resource Materials and Networking IIP will develop databases, specialized assessment tools, best practice guides, and case studies to expand industry awareness of and capacity to implement energy-saving measures. IIP will provide expert policy guidance, hold conferences on topics of critical interest, and create specialized knowledge exchange platforms. Representative Activities: 2012 -2013 Representative Activities: 2014-2015 Customize assessment tool to identify and prioritize energy-saving opportunities in India’s ammonia industry. Work with the cement industry to create an action plan to increase thermal substitution rates. Provide technical support for bundling of mediumscale projects in a steel re-rolling cluster. Promote use of cleaner technologies by IKEA vendors to green the supply chain. Assist foundries in implementing promising opportunities (identified using IIP’s best practices guide) by working with the credit facility created under the World Bank/GEF/BEE project. Help frame complementary policies to assist effective implementation of PAT. Create AFR database and promote AFR use across India’s cement industry. Promote use of assessment tool by all ammonia producers. Hold seminar on the role of supply chain initiatives in promoting sustainable business. Promote energy efficiency best practices in 450 foundries in India.
IIP Strategy in the United States Country snapshot: The United States consumes nearly 11% of the world’s industrial energy (IEA 2012) and offers substantial potential for efficiency improvements. The continuing economic recovery is stimulating demand for industrial products and attracting new investment in manufacturing capacity and infrastructure. These trends, in combination with low natural gas prices (helped by the development of new shale gas resources), could signal a healthy growth in U.S. manufacturing capacity, including the energy-intensive chemicals, fertilizer, cement, and iron and steel industries. State-of-the-art technologies and energy management practices can substantially reduce the energy intensity of U.S. production. Goal: Drive a 3.5% annual reduction in energy intensity in key energy-intensive industries through 2020. Government Industry Superior Energy Performance This U.S. certification program will be launched in 2013 to provide industrial facilities with a roadmap for continually improving energy efficiency while maintaining competitiveness. The program will set up a globally accepted system for verifying the energy management practices, performance improvements, and savings that accrue through use of the ISO 50001 energy management standard. http://iepd.iipnetwork.org/policy/superiorenergy-performance At the Federal level, IIP pursues opportunities to assist in developing decision tools and training materials on energy best practices and in delivering them to key industry groups. Products address systems approaches for energy management and energy system optimization. The President’s August 2012 Executive Order promoting industrial energy efficiency, in combination with new opportunities at the regional and state levels, could drive new policies and programs. To support the Executive Order, IIP will partner with the Energy Foundation and work with key states, regions, utilities, and regulatory groups to identify and implement policies that foster energy efficiency and address financial, regulatory, and institutional barriers. To lower industrial energy intensity, IIP will develop a network for providing tools, training, and technical and financial assistance to energy-intensive industries (initially chemicals, cement, and iron and steel). Efforts will focus on key elements of energy management systems, including developing goals and targets, baselining, benchmarking, plant assessments, portfolio management, and implementation strategies. This work will entail direct engagement with industry and trade groups through workshops, on-line webinars, databases, and the development and adaptation of tools and information materials. Boiler MACT Forthcoming revisions to the Clean Air Act include a new U.S. emissions standard to reduce hazardous air pollutants emitted by industrial boilers and process heaters. Boiler MACT (maximum available control technology), as it is known, could affect more than 1,500 units when it goes into effect in 2016. Combined heat and power (CHP) technology is seen as a leading compliance strategy for some operations. Resource Materials and Networking To support work with government and industry, IIP will help to identify, develop, adapt, and deliver a robust portfolio of materials. These resources will include policy databases, supporting measures and tools for implementation, technical and financial databases, and information on important technical resources, programs, training materials, and publications from the United States and around the world. IIP will establish and nurture partnerships with key U.S. groups, including the ACEEE, Alliance to Save Energy, U.S. Commerce and Energy Departments, Environmental Protection Agency, National Association of State Energy Offices, regional energy efficiency organizations, and state and utility energy programs. Representative Activities: 2012 -2013 Representative Activities: 2014-2015 Work with Ohio groups and industries to assist in identifying CHP and waste heat opportunities and technical and financial needs to meet expected EPA coal Boiler MACT requirements. Establish chemicals and cement industry working groups in Gulf area to identify key opportunity areas and hold workshops and webinars on topics of interest. Develop on-line database for describing key U.S. resources. Conduct monthly series of on-line webinars to address best practices in energy systems management in energy-intensive U.S. industries. Work in several important industrial states in the Midwest to provide enabling tools and models to accelerate the use of best practices and advanced technologies. Develop and adapt tools and technical information targeting waste heat recovery applications in energyintensive industries. Further develop an expert network of technical, financial, and policy experts that can develop an integrated, system-wide approach to substantially reducing industrial energy intensity. Revise and expand databases, software suites, training materials, and information products that can provide cost-effective solutions to saving energy and carbon.
Page 1 and 2: Strategic Plan Sharing best practic
Page 3 and 4: IIP Vision for Industry By 2020, ad
Page 5 and 6: Strategy IIP provides critical anal
Page 7: IIP Strategy in China Country snaps
Page 12: Sharing best practices for the low

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