Intensity and use of energy in indian industries and the. Decision making for a lowcarbon future the case of steel iv key messages steel remains a ubiquitous product, fundamental to the world economy. Energy efficiency and renewable energy eere works with the u. Contribution of energy intensive sectors to the uk economy 2009.
This report compares estimated production costs from four energy intensive industries steel, cement, chemical and nonferrous metals in the european union and some third countries. The department of energy and climate change decc published a consultation document on 1 april 2016 which asks a number of questions regarding the implementation of an exemption scheme for eligible energy intensives industries eiis from the indirect costs of the renewables obligation ro and the small scale feedin tariff fit schemes. Energy intensive industries are of strategic importance to current european value chains, critical to each others value chains and at the forefront of lowcarbon solutions. Energy taxation in europe, japan and the united states. In the past 40 years there has been a 50% reduction in energy consumption in the industry in europe. In recognition of this, the government has sought and obtained approval from the european commission to compensate those electricity intensive industries whose. It reflects the aligned interests between employers, unions and the government to support the transition of these key industries to a low carbon economy.
Energy intensive industries turnover of eur 2000 billion 15% of eu manufacturing added value industrial symbiosis save 1. Effect of tax relief on electricity prices faced by the average energyintensive industry mwh. Between 1990 and 2015, eiis reduced their greenhouse gas emissions by 36% and accounted. Oct 05, 2012 energy intensive industries in the uk. Uk website to complete your application youll need to prove your average. Trends in energy intensity in manufacturing were quite similar to that at the aggregate economy level. Energy consumption in six energy intensive industries. Consultation on implementing an exemption for energy. In the most energy intensive companies, where energy costs are more than 10% of total costs, the costcutting rationale for pursuing energy efficiency is most important. Representatives of the uks energy intensive industries were consulted to discuss sector specific experiences of low carbon technologies and uk innovation. Typically, energy consumption accounts for 2040% of production costs. Are there any models or data for analyzing specific industrial processes ranging from the foundry to the packaging processes and so on. Exempting energy intensive industries from the indirect costs.
Entri finds that coal can be eliminated from chinas electricity mix by 2040, provided appropriate regulations. Compensation for the indirect costs of eu ets and carbon price support. The production of cement is an energy intensive process. Eiis reduced emissions by 36% between 1990 and 2015. Energy efficiency measures in the wood manufacturing industry. Technology innovation for energy intensive industry in the.
To finance the energy transition, the costs of promoting. Various challenges posed by the application of energy efficient motors in highly motor intensive industries such as petrochemical, pulp and paper and food processing is discussed in horton 1994. May 2019 engaging the circular economy approach photovoltaic equipment and options for first endoflife stages the falling cost of solar has made renewable energy accessible to more people than ever before and has resulted in an exponential increase in solar adoption. Pdf energy prices are a key factor for the competitiveness of many german companies. A large number of levies as well as the electricity tax are currently raising the price of electricity and thereby the electricity costs of industries. As a result, there is little reason to expect that germanys solar pv support program has hurt the competitive position of german industry to date, including the relatively few remaining very energy intensive industrial sectors. This document outlines the scottish government decision following consideration of the information provided by respondents to a consultation seeking views on the eligibility of energy intensive industries to be exempted from indirect costs associated with renewable electricity policies. Since manufacturing accounts for the dominant part of energy consumption of indian economy, a similarity of trends is expected. The key findings are substantial heterogeneity among both industries and countries, and a number of cases of declining energy efficiency.
Solar energy support in germany solar energy industries. The response to this consultation has been published today. Masterplan for energyintensive industries fuelseurope. Final energy intensity of selected energy intensive products 11. Energyintensive industries lie at the heart of many eu value chains. In particular, it forms part of an assessment of trade impacts of bcas in developing countries, and will be followed by a complementary. Life and energy intensive industries european commission. Energy intensive sectors of the indian economy esmap. The chart above shows energy consumption for individual industries in 2011. Here is the governments list of designated eiis and the qualification rules. Energy efficiency and co reduction in the iron and steel industry. The agriculture industry is well represented in the produce, meat, and dairy sections of a supermarket.
Endoflife considerations for solar photovoltaics engaging. Energy intensive industries are frequently owned by international companies and are sometimes vertically integrated. Which is the most energy intensive industrial process. Energy efficiency improvement and cost saving opportunities. Mapping energy consumption data by industry sector to aggregate fuel user for charts presented in this chapter of the report 278 table 68. This report examines patterns of energy use, emissions, and trade across manufacturing. To limit the burden, especially for energy intensive industries, the german government. However, the case for pursuing energy cost reduction is often still compelling when energy is a smaller percentage of total costs, as it may be easier to reduce than labor or.
Production costs from energy intensive industries in the eu. Manufacturing value added by selected energy intensive industries 9. Wet corn milling is the most energy intensive industry in the sic 20 sector with a 15% share ofthe total energy used. Compensation for the indirect costs of eu ets and carbon price. Fig 6 a more detailed analysis reveals that the increase in energy intensity. Energy efficiency developments and potential energy savings. This requires a transformation of the uk economy, including the energy market, while keeping energy costs down for business and consumers, and maintaining competitiveness. This publication is a summary of the comparative energy tax survey published by finnish energy industries in november 2010. Energy efficiency developments and potential energy savings in the greater mekong subregion this report was produced under the technical assistance project promoting renewable energy, clean fuels, and energy efficiency in the greater mekong subregion ta 7679. The role of energy efficiency in a new manufacturing landscape. Iisd report november 2012 2012 the international institute or sustainale development energy intensive industries. China immediately begins to implement ambitious energy efficiency measures and reduces the share of its energyintensive industries while growing its services as a basis for sustainable economic development. Despite the increasing importance of energy taxation, only scant information on it is available.
Industrial value chain a bridge towards a carbon neutral europe. Use of a physical measure of energy in productivity analysis helps circumvent or mitigate to some extent certain data issues concerning energy consumption by productive sectors in india explained next slide. Energy data in physical units are needed for a proper analysis of energy intensity of production. Energy efficiency and co2 reduction in the iron and steel industry setis in brief the iron and steel industry is one of the big gest industrial emitters of co 2, accounting for between 4 % and 7 % of anthropogenic co 2 emissions globally. This paper presents estimates of sectoral productivity trends and energy augmenting technological change for several energy intensive industries in india and south korea, and, for comparison, the united states. Several policies have been developed to increase the share of electricity generated from renewable and low carbon sources. They share the ambition of the paris agreement and acknowledge the extent of the transformation challenge as well as the opportunities it brings. Eite industries in the face of higher costs guard against emissions leakage from a loss of market share to more carbonintensive foreign producers provide for equitable distribution of relief to eite firms that need it the most the american clean energy and security act, hereafter re.
This discussion is set in the context of empirical evidence on investment, production and trade. The beet sugar industryis second in energy use 7%, while. Mar 28, 2017 the government launched a consultation into the proposed contracts for difference exemption for energy intensive industries last year. The survey was carried out to provide a basis for decisionmaking. Decarbonising europe s energy intensive industries the final frontier. Pdf electricity costs of energy intensive industries an. Energy intensive industries have played an important role in helping europe meet its current climate ambitions. Are there any models or data for analyzing specific industrial processes ranging from the foundry to. The companies often also own energy intensive business sites outside the uk. Energy intensive industries and energy consumption ifiec europe. Decision making for a lowcarbon future the case of cement 2 section one. Manufacturing energy consumption represents 27 percent of total u. Energy intensive industry eii large business customers. This can mean that uk management has to compete internally over a limited pot of available capital for new or additional investments.
Energy intensive industries include sectors such as the steel, chemicals, engineering and brick making industries where energy usage makes up a significant part of production costs. Industrial value chain a bridge towards a carbon neutral. Energy demand industry transport services energy intensive industries non energy intensive industries non energy use desalination road, rail, air, marine residential services agriculture sector total demand total electricity demand twh 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% electricity mix wind biomass solar rooftop solar csp solar pv. Energy intensive industries compensation scheme gov. Today, eleven of them make up more than half of the eu industrys energy consumption. Path to low carbon development is the product of a collaborative effort between the world bank and the government of india, under the overall leadership of the planning commission and the ministry of power, and with the. An interagency report responding to a request from senators. Production costs have been estimated following a bottomup approach, i.
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