World Energy Outlook 2006

more than 1 000 tce per tonne of steel. The predominance of small-scale plants is
due to the country’s inadequate transport infrastructure. Plants are generally built
close to coal resources and demand centres.
Turnkey process operations are supplied by international engineering
companies and contractors, while small-scale operations are usually based on
local or national knowledge. The energy efficiency of turnkey operations is
similar across the world. To improve the efficiency of turnkey operations,
policies need to focus on research and development and on overcoming barriers
in global supply chains. For small-scale industrial operations, the potential for
energy-efficiency improvement is substantial, but policies need to be tailored
to sectors and take account of national circumstances.
Resource availability is also important for improved industrial energy efficiency,
for example cement clinker substitutes and scrap. The ratio of iron to steel in
China was 0.92 in 2003, while in the United States it was only 0.44. China lacks
indigenous scrap resources and, unlike the United States, is not a significant
importer of scrap and steel products. The iron to steel ratio in China is expected
to remain above that in the United States, and, consequently, the energy intensity
of its iron and steel industry will remain much higher, even if individual process
operations attain the same energy efficiency. In addition, large-scale industries are
usually more energy-efficient than small-scale ones. International collaboration
and technology exchange are important drivers for achieving higher energy
efficiency through economies of scale in developing countries.
The Alternative Policy Scenario incorporates many new policies to improve the
efficiency of motors and motor systems. These policies lead to an average decline
in global electricity demand of some 10% in 2030 compared with the Reference
Scenario. A range of measures is assumed to be adopted (Box 9.2). In addition to
the energy savings, substantial cost savings would also be achieved (see Chapter 8).
Box 9.2: Improving the Energy Efficiency of Motor Systems
Motors and motor systems consume about two-thirds of electricity demand
in the industry sector. 12 The potential for energy-efficiency improvements
in motors, based on technologies available today, is estimated to be roughly
20% to 25%. This potential is greater if savings from improved
distribution and use are taken into account. High-efficiency technologies
for motors are commercially available, as are guidelines for proper
maintenance and repair. Most OECD countries and a number of non-
OECD countries have implemented policies to encourage greater motor
efficiency, including minimum energy performance standards and energy-
12. Motor systems in this case means a machine, such as a pump, fan or compressor, that is driven
by a rotating electrical machine (motor).
240 World Energy Outlook 2006 - THE ALTERNATIVE POLICY SCENARIO
© OECD/IEA, 2007