**4. Sectoral and cross-sectoral approach**

292 Energy Efficiency – The Innovative Ways for Smart Energy, the Future Towards Modern Utilities

1. Transfer from steam to hot water, hot oil, and electricity.

and due to new process requirements.

specialised in heat production.

**3.5. Heat production** 

Finland:

fuels.

**3.6. Lighting systems** 

maintenance.

**3.7. Conclusions** 

for cooling can be expected to increase due to the need to improve working environments

Heat pumps have in principle still many opportunities in industrial processes but heat sources i.e. liquids and gas flows for heat pumps are difficult to exploit. There are blocking and corrosion problems with heat exchangers. No leap forward can be expected by 2020.

Heat production and heat use have been areas where energy efficiency improvements have been remarkable since the 1970s. There are various reasons for this positive development in

2. Transfer from a factory's own boilers to district heating. This type of outsourcing has in most cases caused improvements in efficiency or at least savings in operating costs. 3. Increased use of natural gas. Natural gas is easy and clean to burn compared with other

4. Outsourcing of boiler plants is comparable to district heating. There are opportunities for efficiency improvements when heat production is outsourced to a company

Boiler efficiencies with gas and oil were at a good level even 30 years ago. When one thinks about the future, no remarkable improvements can be expected. With solid fuel boilers, there are opportunities for improvements. With all types of boilers and heat distributing systems, there is always some potential as a result of good maintenance and operation.

Incandescent lamps have disappeared in general lighting, but fluorescent and mercury lamps are still on the market with more efficient applications. High -pressure sodium lamps are taking more and more of the market due to their good energy efficiency. Many people think that the future is in light emitting diodes (LEDs). High expectations have been set for the good energy efficiency and long service life of the LED lamps. It is not certain what their market penetration will be by 2020. For the moment, barriers to market penetration include limited LED lamp applications for general industrial lighting as some of the existing lamps (such as sodium lamps) already have rather good energy efficiency and that the LED lamps need their own light fixtures. However, general lighting may give dozens of percents in saving opportunities through novel lamps, lighting fixtures, control of lighting, and good

For a variety of reasons, the changing of individual technologies to more energy efficient ones is not an easy way to achieve high reduction cuts by 2020. The service life of individual In a study (Stigson et al, 2008), the concept of a sectoral approach was seen to depend on the person who defines the concept. In the study, the following scope was categorized:

*Sector-wide transnational* approaches, e.g. transnational industry-led approaches that aim to engage a sector on a broad international basis or global sectoral industry approach; bottomup *country commitment*, possibly combined with no-lose targets; and top-down sectoral crediting as an incentive mechanism, e.g. sectoral Clean Development Mechanism

The same study found three common features typical of sectoral approaches: 1) collection of data and information about the sector to establish performance indicators or benchmarks; 2) sharing and distributing best practices within companies to enhance monitoring, reporting and verification of emissions and operational efficiency; and 3) engaging with major companies in emerging economies, where the greatest emissions growth and reduction potential lie.

Of these three, the first one lays an information foundation for the other two, where the target is to achieve practical improvements in GHG mitigation, in energy efficiency, or in other fields of energy policy.

Sectoral approaches are most useful especially in the fields of industry where rather homogenous products are handled, such as in the steel and other metal industries, the cement industry, and in the pulp and paper industry. Sectoral approaches provide useful background information on industry but they are time consuming, need a lot of work and a constant updating of the information. The main defect is the collection of reliable data, especially in global comparisons. Collected data is particularly poor even from "the easy sectors" such as the iron and steel, chemical and petrochemical, and pulp and paper sectors (Tanaka, 2008).

Sectoral analysis based on economical figures, e.g. value added (€) or turnover (€) per tonne of steel produced, is easier to collect but not so useful in emission-reduction target setting

compared to physical data such as steel produced per consumed form of energy or per CO2 emissions, see for example (Worrel et al., 1997).

Tools for Categorizing Industrial Energy Use and GHG Emissions 295

HVAC and lighting are clearly the main energy consumers. Assembly lines, the production of equipment and machines are typical industrial sector representatives for this category. In general, many industries that are often described as non-energy

Electricity use in process/production is clearly bigger than the building electricity consumption. Typical branches of industry falling into this category are pulp and paper, metal production,

Heat use in the process/production is clearly bigger than the building heat consumption. Heat means energy forms that are transmitted by pipes such as water, steam, and hot oils. Typical branches of industry belonging to this category are pulp and paper, dairies, part of the textile industry, chemical industry,

indirectly by fire and/or flue gases. Especially natural gas is good in many applications. Typical representatives are cement and lime production, glass and brick production, bakeries, and the

Building energy users Small amounts of electricity and heat are used in the production.

production of rubber products.

production of metals.

advantages are achieved if industry is involved in the projects.

realised at the company or plant levels because energy is used there.

**Table 1.** Ways to use energy in industry (Aro, 2009).

Direct combustion users In some applications, the product can be heated directly or

Table 2 shows an example of this categorization as applied to various industries. Although the companies may belong to different industrial sectors, they may have common aspects in the ways they use energy. For this purpose, the categorisation is useful. It can be used for benchmarking and exchanging information between industries and industrial sectors. At local and regional levels, it is good to have co-operation among industries. For this, categorisation gives opportunities to build up workshops and common development projects under the same theme of energy use in spite of being from different industrial

If a cross-sectoral approach is needed among industries, the regional energy policy also needs a cross-sectoral approach between industry and other sectors of society. This approach means district heating, biofuel use, and other society-wide energy projects, where

Categorization is a tool to reduce energy use and CO2 emissions. The reductions are always

intensive can be considered building energy users.

the production of plastic products, and glass making.

**Form of energy use Description** 

Major users of electricity for process/production

Major users of heat for process/production

sectors.

**5.1. A company level** 

Thus far, much of the discussion on GHG mitigation has been targeted at international or national levels where sectoral approaches illuminate the origins of CO2 emissions and are useful for general industrial GHG policymaking. To achieve real results in the mitigation policy, more and more activities must be set at local or regional levels. That is where the real results in the tackling of climate change will take place.

In the United States, where commitment to international agreements is weak, the subnational GHG policies have developed strongly. It has been estimated that if those states, which have set their own GHG emission reduction targets, achieve those targets, nationwide US GHG emissions would be stabilized at 2010 levels by 2020. And this, without any serious mitigation action taken by over half of the states (Lutsey and Sperling, 2008).

At a local or regional level, successful policy means co-operation among different industries and not only among specific industrial sectors. This is because at the local level there are many industrial sectors and one sector may have only one or very few separate companies. Furthermore, co-operation is needed between industry and other sectors of society. A crosssectoral approach is a must.
