ENERGY AUDIT

In the 1970s-1980s, the two most important indicators of a country’s development were the total energy generation and per-capita gross domestic product. Now the level of a country’s technological development is more accurately characterized by intensity o


Энергосбережение

ENERGY AUDIT

In the 1970s-1980s, the two most important indicators of
a country’s development were the total energy generation and per-capita gross domestic
product. Now the level of a country’s technological development is more accurately
characterized by intensity of power consumption in different productions, in addition to
GDP per capita. The power intensity indicator mirrors efficiency of utilization of fuel
and energy resources in the country, the development level of technology and equipment,
and financial and economic welfare of the State. Unfortunately, by these figures, Ukraine
is lagging behind the world’s leading countries. The rate of energy consumption is very
high in Ukrainian industry. To generate GDP worth USD 1 Ukraine uses 3.25 kg of fuel,
whereas West European countries use only 0.6 kg.

The editorial board addressed Mr. Artur Prakhovnik
(A.P.), honored scientist and technologist of Ukraine, director of the Institute of
energy-saving and energy management of the National Technical University of Ukraine “KPI”,
doctor of technical sciences, professor and Mr. Yevgeniy Kramarenko (Y.K.) honored power
engineer of Ukraine, deputy chairman of Energy-Saving Committee of Ukraine, chief expert
on the problems of energy-saving of Kiev state administration with the request to voice
their opinions on these problems.

M: What are the main reasons for this lag for we know
that Ukraine possesses substantial technological, energy, and intellectual potential?

A.P.: The present-day situation can be explained by the
fact that neither the USSR nor Ukraine have ever pursued uniform energy-saving policy on
the State level. This task was given to the ministries that managed individual industries.
They failed to work out and introduce efficient energy-saving methods. The main causes of
this failure were low, artificially suppressed prices for energy resources and
introduction of technology and equipment without due assessment of their energy-consuming
efficiency. On the other hand, nearly all developed countries understood the importance of
urgent measures in the sphere of resource economy, which were approved and supported on
the governmental and legislative levels. The measures aimed at fulfillment of
energy-saving policy include but are not limited to establishment of consulting and
information companies, educational programs, scientific research, construction designs,
working out of rules and standards, financial incentives, demonstration projects, etc.
Ukraine did not take this experience into consideration. It was as late as in 1994 when
the Law of Ukraine “On Energy Saving” was finally worked out and enacted. The Energy
Saving Committee was established in 1995.

M.: Nevertheless, seven years after this law was
passed, Ukraine is still indicating a tendency towards a growth of energy intensity of its
productions even though, seemingly, a lot has been done in this direction. For example, a
number of new State Standards have been approved in the sphere of energy and resource
utilization, the State Committee’s work is aimed at reduced rates of energy consumption
in the country, and the Cabinet of Ministers has approved a number of regulations.
However, the long-awaited improvements of performance in energy utilization did not come
about. Why?

A.P.: I would disagree with you on this matter. 2000 was
the year of first improvements and I hope the year of the beginning of further advance.
The range of problems that impede rapid development in this sphere can be subdivided into
financial, social, managerial, administrative, legal, and market ones. financial reasons
are lack of current assets, high bank interest rates on loans, non-payment for energy
consumed, using of non-reliable forms of payment etc. Social reasons are connected with
the low education level and information provision in the sphere of energy-saving methods
and techniques. Production and administrative factors are part of the Soviet legacy. Among
the legal factors are absence of legislative documents regulating heat and electric energy
expenses and legal protection of energy consumers. The main goal here should be to launch
an efficient market for energy resources so that every player would be interested in the
most rational energy utilization.

M.: What do you suppose should be done in the first
place to achieve good results in energy saving?

A.P.: First of all, top priority industries must be singled
out, which can yield the maximal effect under the minimal efforts and expenses. Ukrainian
mining-and-metallurgical sector is one of the most energy-consuming industries accounting
for around 20% of the total quantity of fuel and electric energy consumed within the
country. Most of equipment currently in operation has extremely low efficiency and is
outdated and deteriorated in most instances.

M.: In comparison with the figures reported in the last
year’s corresponding period, Ukrainian ferrous metal-making has achieved the following
output increments: iron +11.7%, steel +15.9%, rolled metal articles +16.5%. Physical
exports added 7.8%, whereas export revenues increased 32%.

Y.K.: On the other hand, according forecast estimations by
the management of Metallurgprom Association a 20% raise of tariffs for gas and electric
energy, the profitability of operation of Ukrainian metallurgical companies will approach
zero. Moreover, this forecast was made without taking into consideration of the possible
increase of expenses for coal and railway tariffs.

A.P.: At the same time, the world practice indicates that
each dollar invested in energy-saving programs yields the profit of 3-4 dollars a year.
This is the sphere to look for reserves.

M.: According to the recent information, over 60% of
Ukrainian metal products are made in accordance with outdated high energy-consuming
schemes and the rate of deterioration of the fixed assets came to 63% at the beginning of
2000. It is not clear where enterprises are going to obtain the money required for
technical upgrades, because the in-house assets are the primary source of funding
modernization measures (90-95%), whereas bank loans account for only 2-3%.

Y.K.: It seems to me that under the present-day lack of
investments, enterprises should concentrate on higher efficiency of energy utilization.
The so-called energy audit can reveal the facts of irrational usage of energy, determine
the necessary measures that must be taken, and assess the technical and economic potential
for their fulfillment.

M.: What are the economic advantages that Ukrainian
mining and metallurgical enterprises could get from energy auditing?

Y.K.: Energy auditing of a number of Ukrainian enterprises
indicated that such seemingly simple measures as getting rid of leakage, better thermal
insulation of heated surfaces, and heat recovery can cut the energy losses by 20-30%.

M.: These are impressive figures. And what will the
cost of energy auditing be for a client?

Y.K.: Certainly, the charge depends on the amount and
complexity of work that is to be made. Owing to the fact that energy auditing involves
rather costly equipment and devices, the cost of such an audit is within 2-7% of the cost
of annual energy consumption by the corresponding enterprise. This is a reasonable figure
since the guaranteed economy is at least 10-15%.

M.: How long does an energy audit take?

Y.K.: 2 weeks to 6 months depending on the selected scheme.

M.: With the purpose of correction of the present-day
situation in Ukrainian metallurgy, the Ukrainian parliament worked out and passed “The
national development program of the Ukrainian mining-and-metallurgical sector”, which is
called to specify the measures that are to improve the situation in the industry in
general. On the other hand, what can be done by individual enterprises?

Y.K.: As a matter of fact, the answer to this question is
the main purpose of an energy audit. Each enterprise has its technological peculiarities.
This is why individualized approach is required in order for the audit to be successful
and yield useful recommendations. Another important factor for achievement of substantial
economies in energy consumption is high expertise of the personnel in the energy-saving
sphere.

A.P.: I would like to point out here that pursuant to the
corresponding regulation of the Cabinet of Ministers, the Institute of Energy Saving and
Energy Management of the National Technical University of Ukraine “KPI” has been
designated as the basic institution in the sphere of energy-saving methods. The institute
exercises control over efficient energy utilization throughout the country, works out
methodological recommendations, and trains top-qualification energy-saving specialists and
experts.

M.: Thank you very much for the interesting and
substantial interview.

The interview was taken by Gennadiy ZAK

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