Energy Efficiency

Energy efficiency in industry is one of the important dimension in economic  growth of a country. Energy efficiency improvement in industry is one of the most cost-effective measures to help supply-constrained developing and emerging countries meet their increasing energy demand and loosen the link between economic growth and environmental degradation, such as climate change. It helps in gaining  economic growth along with positive environmental impact while reducing industrial energy intensity and improving competitiveness. Industry is responsible for a sizable margin of global primary energy consumption and energy-related carbon dioxide emissions. In developing countries and countries with economies in transition, the portion of energy supply required for industry can be up to 50 per cent. This often creates tension between economic development goals and constrained energy supply. Still, worldwide, the efficiency with which industry uses its energy is well below the technically feasible and economic optimum.

The industrial sector is vital to a country's economy, but at the same time this sector consumes the most energy in the country to manufacture products we use every day. Among the most energy-intensive industries are cement, fertilizers, textile, chemicals, glass, metal casting, mining, petroleum refining, and steel. In few of the industry such as fertilizers and chemicals, energy sources (such as natural gas) is also used as feed stock/raw material during production.

Energy efficiency applies to a whole chain of manufacturing cycle. The energy supply chain begins with electricity, steam, natural gas, coal, and other fuels supplied to a manufacturing plant from off-site power plants, gas companies, and fuel distributors. If the manufacturing industry has  a captive power plant (own power production facility) , energy efficiency starts from this utility production as well. Energy then flows to secondary energy generation utility system or is distributed immediately for direct use. Energy is then processed using a variety of highly energy-intensive systems, including steam, process heating, and motor-driven equipment such as compressed air, pumps, and fans.

Throughout the manufacturing process, energy is lost due to equipment inefficiency and mechanical and thermal limitations. Reducing losses or optimizing the efficiency of these systems can result in significant energy and cost savings and reduced carbon dioxide emissions. A better understanding of how energy is used and wasted or energy use and loss footprints, can help plants identify areas of energy intensity and ways to improve efficiency.

The industrial sector is one of the most important sectors of the economy of Pakistan, which contributed around 21% of the GDP in FY 2015-16. The sector is characterized by high dependence on fossil fuels such as natural gas, furnace oil, diesel, and coal for heat and/or power generation. Small and medium enterprises (SMEs) in the textile, leather, pulp & paper and sugar sector constitute the major portion of the industrial sector in Pakistan. In these SMEs, fossil fuels are used in low-efficient and old machinery and technologies, thereby incurring high energy production costs for industries. In addition, the use of fossil fuels for energy generation is harmful to the environment. Therefore, the Pakistan’s industries have a large potential to reduce their energy production costs and mitigate pollution emissions by increasing the efficiency of fossil fuels and electricity use as well as adopting renewable energy (RE) technologies.

Achieving sustainable and lasting gains in energy productivity and industrial efficiency calls for continuous improvement of industrial facilities. The UNIDO, runs its  Industrial Energy Efficiency (IEE) Programme, which is  build on more than three decades of experience and its unique expertise in the field of industrial technology, as well as on ‘best practices’ transfer and development. UNIDO’s objective is to improve energy efficiency in industries and ultimately transform the market for industrial energy efficiency.