industrial sector in jordan– energy use current status and future opportunities

Access To Finance for Clean Energy in the Industrial

Sector Workshop

Industrial Sector – Energy Use Current Status

and Future Opportunities

Prepared by

Samer Zawaydeh, Msc, CRM, REP, AEE Life Member

23June2014 Prepared by: Eng. Samer A

Zawaydeh, Msc, CRM, REP, June 2014

Table of Content

• Jordan’s Industrial Sector Size

• Electricity Rates Increase 2013-2017

• Energy Sector Regulatory Framework

• Renewable Energy Technologies• Renewable Energy Technologies

• Energy Efficiency Measures

• Barriers to Improvements

• References

Prepared by: Eng. Samer A


Jordan Chamber of Industry

Annual Report 2013



Mapping Renewable Energy Solution

Industry Size Renewable Type

Large

Scale

Wind

Large

Scale

Solar PV

Small

Scale PV

Solar

Thermal

Geothermal

Small < 10,000KWh/ Mon � �

Small > 10,000KWh/ Mon � �

Medium� �

Large – Mining� � �

Large - Others� � �

Prepared by: Eng. Samer A Zawaydeh, Msc,

CRM, REP, June 2014

Jordan Chamber of Industry Data

11%

17,568 Firms


CRM, REP, June 2014

89%

Small Facilities

Industrial Facilities

Jordan Chamber of Industry Data

24%

240,000 Employees



76%

Small Facilities

Industrial Facilities

Jordan’s Industrial Exports Based on Certificates of Origin

13

14

18

Textile and Ready Made Garments Industries

Chemical Industries and Cosmetic Preparations

Engineering, electrical and information technology indust

19%

Mining Industries

Jordan’s Industrial Exports Based on Certificates of Origin ( %; 2013)

1

1

3

9

10

13

Food, agricultural and animal stock industries

Wood and Furniture Industries

Therapeutic industries and medical supplies

Plastic and Rubber Industries

Packaging, Paper, carton and office equipment industries

Construction Industry

Source: Jordan Chamber of Industry, Annual Report 2013



Electricity Sector Supporting Industry



Industrial Sector Consumes

17% of Final Primary Energy

Source: http://www.memr.gov.jo/Default.aspx?tabid=61Prepared by: Eng. Samer A


Electrical Energy Consumption

(GHW/year)

24% Industrial Sector

Source: http://www.memr.gov.jo/Default.aspx?tabid=61Prepared by: Eng. Samer A


JORDAN’S ELECTRICITY

CONSUMPTION INDUSTRIAL SECTOR

3200

3300

3400

3500

3600

(GW

H)


CRM, REP, June 2014

2700

2800

2900

3000

3100

3200

2009 2010 2011 2012 2013

(GW

H)

YEAR

80

100

120

140

Co

st o

f K

Wh

Electricity Tariff 2013-2017

Small Industrial Consumers

(~75% Increase in 5 years)

1-10000

KWh/month

> 10000

0

20

40

60

80

2013 2014 2015 2016 2017

Co

st o

f K

Wh

Year

> 10000

KWh/month



80

100

120

140

Co

st o

f K

Wh


Medium Industrial Consumers

(~75% Increase in 5 years)

(Peak Load 3.79JD/KW/month)

Day

Night

0

20

40

60

80

2013 2014 2015 2016 2017

Co

st o

f K

Wh

Year

Night



200

250

300

350

Co

st o

f K

Wh


Large Industrial Consumers - Mining

(~33% Increase in 5 years)(Peak Load 2.98JD/KW/month)

Day

0

50

100

150

2013 2014 2015 2016 2017

Co

st o

f K

Wh

Year

Night



80

100

120

140

160

180

200

Co

st o

f K

Wh


Large Industrial Consumers - Other than Mining


Day

Rate

Night

0

20

40

60

80

2013 2014 2015 2016 2017

Co

st o

f K

Wh

Year

Night

Rate



200

250

300

350

Co

st o

f K

Wh


All Industrial Consumers - Day Rates

(~25-43% Increase in 5 years)

Large - Mining

Large - Others

Medium

0

50

100

150

2013 2014 2015 2016 2017

Co

st o

f K

Wh

Year

Medium

Small > 10000

KWh/mon

Small: 1-

10000KWh/mon



Annual Energy Outlook 2013http://www.eia.gov/forecasts/aeo/IF_all.cfm#updated_nosunset



The Energy Pyramid



Jordan’s Regulatory Environment

Jordan Renewable

Regulation No. 73

year 2012

Regulation No. 10 year

2013 - Issued

Wheeling Instruction

per Electricity

Energy Codes

JISM Energy Specs

National

Energy

Efficiency

Action Plan

National

Energy

Efficiency

Action Plan

Renewable Energy and

Energy Efficiency Law 13 for year 2012

year 2012 per Clause

18 of RE and EE Law

13 year 2012

2013 - Issued per

Paragraph (b) of Clause (11) of REEEL 13 year 2012-

per Electricity Law (64)

year 2002, article 7B-3, 9B

Electricity Regulatory

Commission (ERC)

Regulations

Codes

-

Solar Code 2012

Specs

+

Energy Labels

National

Plan for

Electricity

Company

Losses

National

Plan for

Electricity

Company

Losses

National

Building

Code No

(7) for

1993

National

Building

Code No

(7) for

1993



Jordan National Building Energy Codes

Article 4a: Abide by the Jordan National Building

Codes (JNBC) Related to Energy by 2015

Thermal Insulation Code

(Version 2, Issued 2009)

Energy Saving Buildings Code

(Issued 2010)

Green Buildings Guide

(Issued 2013)Solar Energy Code

(Issued 2012)

To Be Updated:

1. Natural Lighting Code

2. Interior Illumination Code

3. Mechanical Ventilation and Air

Conditioning Code

4. Water Supply for Buildings Code

5. Central Heating CodePrepared by: Eng. Samer A


Article 4b: Consumer Compliance Certificate

MEMR To issue compliance Certificate within

two months from satisfying requirementsPrepared by: Eng. Samer A


Article 4c: Consumer has three yeas to comply

With Bylaw No. (73) For year 2012

Three years period ends September 2015



Article 5a: Consumer is Subjected to Periodic

Mandatory Energy Audit

* Energy Audit must be done by licensed

companies per bylaw 73

* Consumer must submit Energy Audit to MEMR



Article 6: Energy Audit Services by Licensed

Parties by MEMR

* Energy Audit conditions and procedures to be

issued per bylaw 73



Article 7a: Energy Labels

* MEMR and JISM organize a list of Equipment

that must have Energy Label



Article 7b: Low Efficient Equipment

* Manufacturing and Importing of Low Efficiency Equipment is

prohibited unless material is already in the market or in transit

pending customsPrepared by: Eng. Samer A


Article 8: Manufacturing and Import of Low Efficient Equipment

* Record keeping of MEMR Energy Label Information provided to

manufacturer or supplier for 5 years

* Energy Label to be fixed clearly on product



Article 9a: Multi Purpose Electric Meters

* Multipurpose Electric Meters shall be adopted to use Electrical

Tariffs for Day, Night and Peak Hours per ERC instructions



Renewable Energy Technologies



Renewable Energies

• Wind

– Large Utility Scale

– Small Scale

• Solar

Electricity

• Solar

– Solar Water Heaters

– Solar PV

– "CSP" Tri-generation

• Geothermal

Heat Electricity

Heat ElectricityPrepared by: Eng. Samer A


Wind Projects

Taffila 3MW WECSP 1.65MW Hofa 0.225MWPrepared by: Eng. Samer A


Solar Water Heaters

Solar Water Heat worldwide Report 2011



Solar Water Heaters

Temperatures 50-140 °CPrepared by: Eng. Samer A


Largest Solar PV Plant in Jordan

1MWp =~ 2GWH per year



Largest to Date – Industrial PV

2000 Modules Roof Mounted



A total of 40 collectors each with

nearly 6 m2 cross reflector area

and nominal output of 120 KW is

installed. The rotation axis is

North –West with sunrise to

sunset tracking. Oil output

temperature up to 260°C has

been achieved

"CSP" Tri-generation Project - MUTAH University

been achieved

http://www.rayer.co.uk/tri-generation-project Drawings & Arrows by presenter

http://www.astraco.com.jo/?q=node/56



Geothermal Water Potential

to contribute to the clean energy mix

http://iicpsd.org/2014/04/16/iicpsd-and-ross-school-of-business-university-of-michigan-conclude-geothermal-energy-for-food-security-project-in-jordan/



Mapping of renewable energy solutions

Small < 10,000KWh/

Mon

Small > 10,000KWh/

Mon

Wind energy

SmallLarge

PV

SmallLarge CSP

Solar

Thermal

System

Medium

Large – Mining

Large - Others



Energy Efficiency Measures



Energy Management

• Better Designs

• Energy Efficiency

– Using less energy for the same outputsame output

• How

– Change Behavior

– Adopt new technologies

– Adopt new management systems



Industry is Material Processing

Energy and Material BalancesRenewable and Efficiency Opportunities

Business Opportunities (Re-Design)

How much Energy is Wasted? What are you doing with your wasted Material?Prepared by: Eng. Samer A


INDUSTRIAL SYSTEMS

• Waste Heat Recovery

• Boilers and Thermal

Systems

• Industrial Energy

• Compressors

• Turbines

• Pumps

• Compressed Air Systems• Industrial Energy

Management

• Fuel Choices

• Steam Systems

• Heat Exchangers

• Compressed Air Systems

• Air Leaks

• Lighting Systems

• Building Envelope



Energy Decisions Paradigm Shift

Before 2008

Low Energy Cost

After 2008

High Energy Cost

• Life Cycle Cost – Levelized

Cost of Energy (LCOE)

• Initial Cost is important

Cost of Energy (LCOE)

– Initial Cost

– Finance cost

– Training Cost

– Operation Cost

– Maintenance Cost

– Salvage Cost



Required Energy (Electricity) Solutions

Less KWh = Less KW or Less hours

Less Energy Consumption

Less WasteTrainingIncrease

Productivity

Redesign

Management

Less Waste

Less Maintenance

Calculate Life Cycle Cost

Training

Do Better with Less for Longer Time

Productivity

SelectionSound

Finance



Example – Medium Industries

80

100

120

140

KW

h (

JOD

Fil

s)


Medium Industrial Consumers


Day

0

20

40

60

80

2013 2014 2015 2016 2017

Co

st o

f K

Wh

(JO

D

Year

Night

1. Move to Night Shift – Less 15%2. Peak Load �� Shift the Load



Payback Period for PV Systems

4,0,00

5,0,00

6,0,00

7,0,00

8,0,00

Nu

mb

er

of

Yea

rs

1200JD/KWp



-

1,0,00

2,0,00

3,0,00

4,0,00

0,1 0,115 0,117 0,171 0,275

Nu

mb

er

Electricity Unit Cost (JD/KWh)

1200JD/KWp

1000JD/KWp

1000JD/KWp

Example Piping System Retrofit

• Big Pipes + Smaller Pumps

• Reduce Friction

• Increase Pipe Diameters

• Reduce Number of Fittings

• Less Losses

• Reduced Size

• More Efficiency

• Less Cost

Recommendations Benefits

• Reduce Number of Fittings

• Reduce Flow

• Right Size Motors

• Thermal Insulation

• Less Cost

• Less Maintenance



In Dept Technical Documentation

http://www.energystar.gov/buildings/sites/default/uploads/tools/estar_and_manufacturers.pdf?9a65-698a



Development of Industrial Sector

Energy Savings

Full Size

Control and

Training

Pilot Projects

Full Size Projects

and Monitor



Continuous Improvement

Barriers to Renewable Energy Adoption

Industry Size Technical Financial Installation

Area

Small < 10,000KWh/ Mon � � �

Small > 10,000KWh/ Mon � � �

MediumMedium� � �

Large – Mining�

Large - Others�


CRM, REP, June 2014

Barriers to Improvements

• Financing for SME

• Upfront Cost

• Change Initial Investment Mentality to Life

Cycle Cost Cycle Cost

• Permits for Large Scale RE projects

• Limited Space for RE projects

• Well Established Clean Tech Loan Procedure

• Senior Management Behavior



Four Steps to implementationYour actions Existing supporting entities

Step 1

Energy Baseline

▪ Execute quick upfront diagnostic

▪ Identify Energy Expenditures during the past 12 months

(Electrical, Diesel, Gas, Transportation)

▪ Conduct detailed diagnostic

– Establish performance baseline per process

(steam, compressed air, electrical per system)

– Identify Energy Conservation Opportunities

Step 2

Detailed

Assessment

NERC, ESCOs,

Suppliers

ACI, ERBD

NERC, ESCOs, ACI

Subject Matter Experts

Assessment

Step 3

Techno-Economical

Decisions

Step 4

Implementation

Control & Monitor

▪ Conduct Technical and Economical Feasibility for the

Different ECO

▪ Calculate Levelized Cycle of Energy per solution

▪ Prioritize the opportunities and decide which ones to be

implemented in which order

▪ Implementation Energy Efficiency and Renewable Energy

Projects

▪ Measure performance and revise baseline

ACI, ERBD

In-house, Consultants,

Suppliers,

NERC, ESCOs, ACI

Successful Pilot Projects

In-house, Consultants,

Engineering Firms

Prepared by: Eng. Samer A Zawaydeh, Msc, CRM, REP, June 2014Prepared by: Eng. Samer A


Remove Barriers to Improvements

•Senior Management Behavior

•Train your Manpower in EE & RE

•Know your Energy Baseline

•Adopt Energy Management System•Adopt Energy Management System

•Seek Financing for SME

•Think LCOE instead of Initial Investment



Supporting Organizations

NERC1

Solar Water Heaters Suppliers

PV Suppliers

EE Equipment Suppliers

Energy Service Companies2

3

4

5

▪ Training, 3rd Party Services, Testing

▪ Generating Electricity from Sun

▪ Hot Water Solutions

▪ Energy Efficient Solutions for Industrial Systems

▪ Energy Audits, Performance Contracting

Description of ServicesOrganization/ Entities

EE Equipment Suppliers

ERC

Jordan Chamber of Industry

Wind Suppliers and Consultants

5

6

7

8

EDAMA, JRES, Jordan GBC, JEA, A/E Business Council9

The Network for IndustrialSustainability

10

▪ Issues related to RE Grid Connection

▪ 50% Grants for SWH/ PV Systems, Energy Audits

▪ Utility Scale Wind Projects for Large Industries

▪ Networking, Training in Energy

▪ More than 1000 Online Resources in Water, Energy and

Environment related to Industrial Sector



ReferencesReferences



Training

Certified Energy Manager Course• I. ENERGY ACCOUNTING AND ECONOMICS

• II. ENERGY AUDITS AND INSTRUMENTATION

• III. ELECTRICAL SYSTEMS

• IV. HVAC SYSTEMS

• V. MOTORS AND DRIVES

• VI. INDUSTRIAL SYSTEMS

• VII. BUILDING ENVELOPE• VII. BUILDING ENVELOPE

• VIII. BUILDING AUTOMATION SYSTEMS

• IX. CONTROL SYSTEMS

• X. COMBINED HEAT AND POWER SYSTEMS; RENEWABLE ENERGY

• XI. LIGHTING SYSTEMS

• XII. MAINTENANCE

• XIII. BOILER AND STEAM SYSTEMS

• XIV. THERMAL ENERGY STORAGE SYSTEMS

• XV. COMMISSIONING

• XV. MEASUREMENT AND VERIFICATION (M&V)

http://www.aeecenter.org/i4a/pages/index.cfm?pageid=3351


CRM, REP, June 2014

NETWORK FOR JORDANIAN INDUSTRIAL SUSTAINABILITY

(OVER 1000 RESOUCES)



http://www.jci.org.jo/LinkClick.aspx?fileticket=V8iqc_3SxB0%3d&tabid=125

MED ENEC

ENERGY EFFICIENCY RESOURCES



Energy Star INDUSTRIAL ENERGY MANAGEMENT INFORMANTION CENTER

http://www.energystar.gov/buildings/facility-owners-and-managers/industrial-plants/industrial-energy-management-information-center?c=industry.bus_industry_info_center#resources_corp Prepared by: Eng. Samer A


Call For Action

• EE and RE are Investment Decisions

• EE & RE have Return on Investment larger than

Production profits

• Identify Energy Conservation Opportunities• Identify Energy Conservation Opportunities

• Seek Professional Technical Know How

• Do it yourself energy projects for SMEs



Thank you

Questions???

Industrial Sector – Energy Use Current Status

and Future Opportunities

Access To Finance for Clean Energy in the Industrial Sector

23June2014

Email: [email protected] +962.78.839.9453

industrial sector in jordan– energy use current status and future opportunities

Engineering

samer zawaydeh

industrial sector source

electricity sector

small industrial consumers

medium industrial consumers

clean energy

costofkwh electricity

final primary energy