A Service Business Model for Saving Energy and Reduction of CO₂ Emissions Using Inverters

Abstract

This paper considers the effectiveness of the service business approach for reducing CO 2 emissions. "HDRIVE" is a service business using inverters to reduce the energy consumption of motor drive. The business model of this service is changed to find new opportunities of CO 2 emission reduction by combining various factors such as financial services or long-term service contracts. Risk analysis of this business model is very important for providing stable services to users over the long term. The HDRIVE business model is found to be suitable for this objective. This service can be applied effectively to industries such as chemicals or steel, where CO 2 emissions are very large, and has the possibility of creating new business considering CDM or trading CO 2 emission rights. The effectiveness of this approach is demonstrated through several examples in real business.

Energy saving in case of intermittent production by retrofitting service plant systems through inverter technology: a feasibility study

“…For these reasons, Kosaka and Yabutani (2012) recently studied energy-intensive sectors including industries, such as steel making, chemicals and cement where many AC motors are used, proposing a new business model in energy saving. The business model that they proposed is based on energy service business.…”

Energy saving in operations management through variable-speed drive technology: environmental versus economic convenience

“…Even though some case studies exist in this field, only a very few recent contributions with general analytical analysis looking at influencing variables and cost drivers are available. Kosaka and Yabutani (2012) studied energy-intensive sectors, including such industries as steel making, chemicals and cement, in which many AC motors are used, proposing a new business model in energy saving whereby energy-saving measurement tools are installed together with inverters and the amount of energy saving (saved energy × unit power price) is calculated monthly. Based on these data, users pay service fees to service providers in accordance with service contracts, without any installation costs.…”

“…They focused just on the economic objective, considering the problem from the company perspective, without including the environmental impact, which is relevant. As highlighted also by Kosaka and Yabutani (2012) converting the saved energy obtained by applying VSD systems to CO 2 emission reduction, is possible to notice how VSD is an effective solution in order to aid in the prevention of global warming and promote climate stabilisation.…”

Market-oriented Operations Strategy of CCHP with Multiple Models

“…In recent years, based on numerous research results of mature system physical models, the system of CCHP has been promoted and applied worldwide [1][2][3][4][5]. At the same time, in the field of electrical economics research, it is imperative to study market-oriented operations strategy of CCHP and establish an operations strategy framework to further adapt to current market operations [6][7][8].…”