Quantifying the Co-benefits of Energy-Efficiency Programs: A Case Study of the Cement Industry in Shandong Province, China

Abstract

Executive SummaryChina's cement industry accounted for more than half of the world's total cement production in 2010. The cement industry is one of the most energy-intensive and highest carbon dioxide (CO 2 )-emitting industries and one of the key industrial contributors to air pollution in China. For example, it is the largest source of particulate matter (PM) emissions in China, accounting for 40 percent of industrial PM emissions and 27 percent of total national PM emissions. Although specific regulations and policies are needed to reduce the pollutant emissions from the cement industry, air pollution can also be reduced as a co-benefit of energy efficiency and climate-change mitigation policies and programs. Quantifying and accounting for these cobenefits when evaluating energy efficiency and climate-change mitigation programs reveals benefits beyond the programs' energy and global warming impacts and adds to their cost effectiveness.In this study, we quantify the co-benefits of PM 10 and sulfur dioxide (SO 2 ) emissions reductions that result from energy-saving measures in China's cement industry. We use a modified form of the cost of conserved energy (CCE) equation to incorporate the value of these co-benefits: CCE co-ben = (annualized capital cost + annual change in operations&maintenance costs -annual co-benefits) annual energy savings (Equation ES-1)The annualized capital cost can be calculated as follows:where: d = discount rate (assumed 30 percent in this study) n = lifetime of the energy-efficiency measureWe used the following methodology to calculate CCE with co-benefits (CCE co-ben ):1. We established the year 2008 as the base year for energy, materials use, and production in 16 representative cement plants in Shandong Province. We also used 2008 data when modeling air quality and health impacts, as described below.2. We compiled a list of 34 commercially available technologies Out of the 34 measures, 29 are applicable to the cement plants in our study, 23 are electricity-saving measures, and 6 are fuel-saving measures. To quantify the air pollution emissions (PM and SO 2 ) reductions associated with the electricity-saving measures, we used relevant average emission factors for the electricity grid. We did not conduct the air quality modeling or analyze health impacts of the electricity-saving measures because the air pollution from electricity generation is emitted by power plants that are dispersed around the region which is beyond the scope of this study, and our goal in this study is in the air pollution effects of the cement plants themselves. Therefore, in quantifying co-benefits to be included in the CCE calculation, we focused only on the six fuel-saving measures because those measures reduce air pollution at the cement plant site.3. We assessed the potential application of the energy-efficiency technologies and measures in the 16 Shandong cement plants based on information collected from the plants.4. We calculated energy savings and CO 2 and air pollutant (PM 10 and SO 2 ) emissions reduc...

Energy efficiency improvement potentials for the cement industry in Ethiopia

“…The Chinese government also makes an aggressive policy to phase out VSK during the five year period 2011e2016. Recently, the phase out of VSK capacity exceeded the policy target and in turn, production from rotary kilns grew rapidly [5]. In other words, current policy in Ethiopia allows the import of technology that is considered obsolete in the exporting country itself.…”

“…Note that some EEMs also provide additional productivity and environmental benefits which are difficult and sometimes impossible to quantify economically. Including quantified estimates of other benefits could significantly reduce the CCE for the energy-efficiency measures [5,28,29].…”

“…China, India, USA, Germany and Europe). For example, energy efficiency potential studies were conducted for the Thai cement industry [3], the cement industry in Shandong (China) [4,5], for the European [6], US [7], the German cement industry [8]. As the economy develops in Africa and other less-developed countries, cement demand in those countries is rapidly increasing [9].…”