World Energy Outlook 2007

Box 11.2: Cost-Effectiveness of Improving Industrial Motor System
Efficiency in China
Industrial motor systems in China consume more than 600 billion kWh of
electricity each year, representing more than 50% of industry’s total
electricity use. Optimisation of motor systems could result in energyefficiency
improvements of 20% or more. Individual industrial components
such as motors, pumps, compressors and steam boilers have been improved
by manufacturers, but their impact in reducing energy consumption relies
on well-designed and optimised systems that use these individual parts
efficiently. An optimised system can increase productivity and reliability, as
well as save energy. China’s Motor Systems Energy Conservation
Programme was set up with the intention of establishing a national
mechanism to promote motor system efficiency in Chinese industries. 10
Pilot programmes were established by the local energy conservation centres
in Jiangsu and Shanghai provinces:
In Jiangsu, the Sinopec Yangtze Petrochemical Company found that
electricity was being wasted by using valves to regulate fluid flow and
pressure. Installation of variable speed drives on 34 motors resulted in
energy consumption falling from 8.0 kWh per tonne of refined crude oil
to 5.8 kWh. This saved 14.1 GWh of electricity and 11 300 tonnes of
CO 2
emissions annually. Additional cost savings came from reduced
maintenance and prolonged equipment life. Lower noise levels resulted
in improved working conditions. The investment cost was paid back
within six months.
In Shanghai, the New Asiatic Pharmaceuticals Company found that the
four pumps in the water-cooling system, which use 17 GWh per year,
were oversized and unable to respond to seasonal variations in load.
Improper pipe configuration and inadequate heat exchanger performance
were also found. Appropriate pumps, redesigned pipe configurations and
control systems were installed at a cost of 1.2 million yuan ($150 000).
This resulted in energy savings of 1.1 GWh, or 49% of system energy
usage. Annual cost savings were 660 000 yuan ($82 500). The investment
accordingly had payback period of less than two years (Williams, 2005).
The additional cumulative investment in more efficient building shells and more
efficient appliances in the Alternative Policy Scenario amounts to $90 billion over
the period 2006 to 2030 in the residential and services sector – two-thirds of it in
electrical equipment, appliances, and solar water heaters. Most measures quickly
10. It was financed by the Chinese government and industry, the United Nations Foundation, the
United States Department of Energy and the Energy Foundation. The United Nations Industrial
Development Organization, the Lawrence Berkeley National Laboratory and the American Council
for an Energy Efficient Economy implemented the programme over 2001-2005.
386 World Energy Outlook 2007 - CHINA’S ENERGY PROSPECTS