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Reducing industrial energy costs through energy-efficiency measures in a liberalized European electricity market:: case study of a Swedish iron foundry
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Swedish Foundry Association, Jönköping.
2005 (English)In: Applied Energy, ISSN 0306-2619, Vol. 81, no 2, 115-126 p.Article in journal (Refereed) Published
Abstract [en]

Swedish industry, which has one of the lowest electricity prices in the European Union, will face higher electricity prices due to the Union’s electricity market liberalization. Rising electricity prices, together with a larger use of electricity than other European countries, pose a threat to industrial activity in Sweden. The Swedish foundry industry, with large proportions of energy costs in relation to the added value, is particularly sensitive to higher electricity costs. The aim of this paper is to study the effect of higher electricity prices on the Swedish iron-and steel foundry industry, quantify an energy efficiency potential for a medium-sized Swedish iron foundry resulting from a thorough industrial energy audit, and investigate what impact they have on the energy cost.

Place, publisher, year, edition, pages
2005. Vol. 81, no 2, 115-126 p.
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-12508DOI: 10.1016/j.apenergy.2004.07.006OAI: diva2:324
Original publication: Patrik Thollander, Magnus Karlsson, Mats Söderström, Dan Creutz, Reducing industrial energy costs through energy efficiency measures in a liberalized European electricity market - Case study of a Swedish iron foundry, 2005, Applied Energy, (81), 2, 115-126. Copyright: Elsevier B.V., Available from: 2008-09-30 Created: 2008-09-10 Last updated: 2009-06-05Bibliographically approved
In thesis
1. Towards Increased Energy Efficiency in Swedish Industry: Barriers, Driving Forces & Policies
Open this publication in new window or tab >>Towards Increased Energy Efficiency in Swedish Industry: Barriers, Driving Forces & Policies
2008 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Industrial energy efficiency is one of the most important means of reducing the threat of increased global warming. A higheruse of electricity than their European competitors, together with increased energy costs due to increasing energy prices in Swedish industry have negative impacts on results and competitiveness. Of great importance are thus different means which promote energy efficiency such as industrial energy policy instruments. However, cost-effective energy efficiency measuresare not always undertaken. In order to formulate and adopt accurate industrial energy end-use polices, it is thus of importanceto identify the barriers that inhibit the implementation of cost-effective energy efficiency measures. It is also of importance to identify the factors which promote the implementation. The aim of this thesis is to analyze industrial energy systems andmore specifically study factors that promote or inhibit energy end-use efficiency in Swedish industrial companies.

Results from this thesis show that the implementation of technical energy efficiency measures is a major means for both energy-intensive and non-energy-intensive Swedish companies to overcome the threat of rising energy prices, for example for electricity. While energy efficiency measures in the non-energy-intensive industry are related mainly to support processes, measures in the studied energy-intensive Swedish foundry industry are related to both support and production processes.

In the various case studies of barriers and driving forces, the most significant barriers to energy efficiency - with largevariations for some of the barriers among the studied cases - were found to be: technical risk such as risk of productiondisruptions; lack of time or other priorities; lack of access to capital; cost of production disruption/hassle/inconvenience; other priorities for capital investments; technology considered inappropriate at the site; difficulty/cost of obtaininginformation about the energy use of purchased equipment; and lack of budget funding. The largest driving forces, apart fromcost reductions resulting from lowered energy use, were found to be the existence of a long-term energy strategy and peoplewith real ambition. These driving forces did not, unlike the results of barriers to energy efficiency, vary widely across thestudied sectors.

Investment decision support such as optimization has shown to add more information for larger capital-intensive investmentsin energy-intensive industrial SMEs. The thesis also showed that energy audits are an effective means, in terms of publicmoney spent per kWh saved, of providing the industry with information on potential energy efficiency measures.

Based on the results presented in this thesis, a policy approach towards non-energy-intensive companies and industrial SMEsshould primarily include providing energy audits free of charge and involve the local authority energy consultants.

Abstract [sv]

Industriell energieffektivisering är ett av de viktigaste sätten att reducera hotet om en globaluppvärmning. En högre relativ elanvändning, i jämförelse med europeiska konkurrenter, tillsammans med stigande energikostnader beroende av stigande energipriser för den svenskaindustrin, riskerar leda till försämrad lönsamhet och försämrad konkurrenskraft. Det är såledesav stor vikt att främja energieffektivisering, exempelvis genom olika typer av styrmedel. Lönsamma energieffektiviseringsåtgärder genomförs emellertid inte alltid, till följd av olikahinder för energieffektivisering. För att kunna formulera precisa styrmedel är det därför avstor vikt att dessa hinder som förhindrar implementering av energieffektiviserande åtgärder,identifieras. Det är också av stor vikt att identifiera drivkrafterna. Syftet med denna avhandling är att analysera industriella energisystem och mera specifikt studera faktorer somfrämjar och förhindrar effektiv slutanvändning av energi i svensk industri.

Resultaten visar att hotet om stigande energikostnader, exempelvis beträffande elektricitet,både för icke energiintensiv och för energiintensiv svensk tillverkningsindustri, kan reduceraskraftigt om energieffektiv teknik implementeras. Medan åtgärder i icke energiintensiv industrifrämst är relaterade till stödprocesser så visar sig åtgärderna i den studerade svenska energiintensiva gjuteriindustrin vara relaterade till både stöd- och produktionsprocesser.

I fallstudierna beträffande hinder och drivkrafter visade sig de största hindren vara - med storavariationer mellan fallen - tekniska risker såsom risk för produktionsstörningar och avbrott; brist på tid/andra prioriteringar; brist på kapital; kostnader för produktionsstörningar; ickeenergirelaterade investeringar prioriteras högre; tekniken passar ej för företaget;svårigheter/kostnader att erhålla korrekt information beträffande energianvändningen av deninköpta utrustningen; och brist på budgetmedel. De största drivkrafterna var, utöver kostnadsminskningar till följd av minskad energianvändning, förekomsten av en långsiktigenergistrategi och en eldsjäl. Drivkrafterna varierade inte, till skillnad mot hindren, så mycketmellan de olika undersökta fallen.

Beslutsstöd såsom exempelvis optimering har visat sig kunna ge ökad information vid störremer kapitalintensiva investeringar i energiintensiva små- och medelstora företag. Vidare har energianalyser visat sig vara ett effektivt sätt, i termer av besparad kWh per statligt insattkrona, att ge industrin information beträffande möjliga energieffektiviserande åtgärder.

Resultat från avhandlingen indikerar att ett stöd gentemot icke energiintensiva och små och medelstora företag framförallt bör inkludera statligt finansierade energianalyser med denlokala energirådgivaren som en deltagande aktör.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2008. 83 p.
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1214
Industrial energy efficiency, barriers, driving forces, investment decision support, energy policies
National Category
Engineering and Technology
urn:nbn:se:liu:diva-14907 (URN)978-91-7393-793-1 (ISBN)
Public defence
2008-10-28, ACAS, hus A, Campus Valla, Linköpings universitet, Linköping, 10:15 (English)
Available from: 2008-09-30 Created: 2008-09-30 Last updated: 2014-10-08Bibliographically approved

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