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Nov 5, 2013 (3 years and 1 month ago)

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Energy efficiency

The benefit of variable speed drives

Pekka Tiitinen, BU Manager Low Voltage Drives, Helsinki, August 31, 2011

How ABB is organized

Five global divisions

ABB’s portfolio covers:


Electricals, automation,
controls and instrumentation
for power generation and
industrial processes


Power transmission


Distribution solutions


Power
Products

Power
Systems

Discrete
Automation
and Motion

Process
Automation

$10 billion

$6.8 billion

$5.6 billion

$7.4 billion

(2010 revenues)

Low Voltage
Products

$4.5 billion



Low
-
voltage products


Motors and drives


Intelligent building systems


Robots and robot systems


© ABB Group

November 6, 2013

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PLC
Robots
Drives
PLC
Robots
Drives
Discrete Automation and Motion division: Business Units

Together, we drive our customers‘ industrial productivity
and energy efficiency


Low voltage AC drives from 0.12 to
5600 kW


DC Drives from 4 kW to 15000 kW


Wind turbine drives


Solar inverters


PLCs, HMIs, and wireless sensors
and actuators


Software tools


Energy saving tools


Service


LV Drives

Motors

and Generators

Power Electronics

and MV Drives

Robotics


Advanced power electronics


Converter products


Excitation and synchronizing
systems


High power rectifiers


Power quality products


Traction converters


Medium voltage drives from 315
kW to more than 100 MW


Charging infrastructure for
electric vehicles


Service


Low voltage motors from 0.25 to
1000 kW


High voltage motors and
generators up to 70 MW


High speed motors


Traction motors


Wind power generators


Diesel generators


Gas and steam turbine generators


Hydro generators, tidal waves, etc


Service


Industrial robots


Robot controllers and software


Industrial software products


Application equipment and
accessories


Robot applications and
automation systems for
automotive, foundry, packaging,
metal, solar, wood, plastics, etc.
industries


Service


© ABB Group

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Discrete Automation and Motion

Products and integrated automation solutions, incl.
PLC, robots, drives and motors for discrete
automation

in industry, and infrastructure

Areas of activity

Life
-
cycle
services

Product
packages
and
engineered
applications

World
-
class
operations

Movement and control in industrial applications.
Motors, drives, generators, and mechanical power
transmission for industry, utilities, infrastructure and
transport

Generators, converters, inverters, drives, motors,
controls, packages, and applications for renewable
power generation

Control of power supply and ensuring power quality
for industrial, utility, and infrastructure applications

Fast charging of electric vehicles, components for rail
rolling stock and rail infrastructure, drives and motors
for heavy electric vehicles


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Industrial

motion

Discrete

automation

Renewables

Power
control

and quality

Transport

Three complementing enablers


Product packages with optimized fit


E.g. drives
-
motor bundles for high energy efficiency


Applications for specific functionalities/tasks


E.g. synchronized tending robot and press drive for press
automation


Leveraging strong motion offering for discrete automation

Product packages
and engineered
applications

Life
-
cycle

services

World
-
class
operations


Pre
-
sales, e.g. energy audits


Advanced life
-
cycle services


E.g. LEAP (life expectancy and analysis program)


20% of revenues this year, ambition of ~30% by 2015


Benchmark against real “world
-
class”


DM
-
wide, transformational initiative


Along whole value chain from marketing/sales, product mgmt.,
R&D across whole supply chain


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The International Energy Agency (IEA) Current Policies Scenario
describes a future in which governments make no change to existing
energy policies


World energy demand

(in million metric tons of oil

equivalent,
Mtoe
)

Source: IEA World
Energy Outlook 2010

World primary energy demand under current policies


Demand and related emissions rise in parallel

2008

12,271

2020

14,896

2035

+47%

18,048

2008

29.3

2020

35.4

2035

+45%

42.6

Energy
-
related CO2 emissions

(in gigatonnes)


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IEA 450 Policy Scenario



The Copenhagen accord on climate change sets the goal
of limiting global average temperature increase to 2
°
C


The 450 Policy Scenario developed by the IEA is what
would be required to achieve this goal


Why 450?


According to the Intergovernmental Panel on Climate
Change (IPCC), limiting the temperature rise to 2
°
C
requires limiting the greenhouse
-
gas concentration in
the atmosphere to about 450 parts per million of
carbon
-
dioxide equivalent (
ppm

CO
2
-
eq)


NOTE: GHG
concentration
today is ca. 455
ppm and
temperature
increase from pre
-
industrial era is
ca. 0.76
°
C.


© ABB Group

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CO2 emissions (Gt)

Source: IEA, World
Energy Outlook 2008

Energy efficiency

The main source of potential emissions reductions

2000

2006

2030

2020

40

30

20

54%

23%

14%

9%

Energy
efficiency

Renewables
and biofuels

Nuclear

CCS*

Current trend

450 Policy
Scenario

63%

18%

550 Policy
Scenario

*Carbon capture and storage

PPM concentration in the atmosphere.


© ABB Group

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Reducing losses along the energy chain

ABB technology helping at every step

Primary energy

Transport

Generation

T&D

Industrial
processes

Industrial
production

Available energy

ABB technology can double
energy productivity

More efficient
fuel
combustion

Higher
pipeline
flows

Improved well
efficiency

Lower line losses,
higher substation
efficiency

Improved
productivity

More efficient
motors & drives

Drives &

motors

Process

Automation

Marine &
pipelines

Power plant

automation

Grid

operation

Process

automation


© ABB Group

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ABB Low Voltage Drives save annual output of 250 nuclear
plants

Helsinki is the world “capital” of low voltage drives


About one quarter of all primary energy is consumed by industry


About the same amount is lost in the generation and transmission of
electricity


This means that every kWh saved in consumption saves 2 kWh in primary
energy


About 20% of the energy consumed by industry is in the form of electrical
energy. The rest of the energy is derived from burning fossil fuels.


Industry consumes about 1/3 of all electrical energy


2/3 of the electrical energy industry is used by electrical motors


High
-
efficiency motors and use of drives with significant energy savings
potential


Motors up to 10%


Drives up to 40%

Installed base of ABB drives saves electricity equivalent to

annual consumption of more than 65 million EU households


© ABB Group

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Typical measures to improve energy efficiency are feasible and attractive


Optimization of existing processes


Payback periods < 3 years


Using existing technology

Power intensity
(electricity costs as a percentage of revenue)


Potential for energy efficiency in industry

Significant

savings

are

possible

Energy efficiency can improve the EBIT margin with several percentage
points. A good reason to put energy efficiency on the agenda.

EBIT margin
improvement
potential


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Potential for energy efficiency in industry

What a drive does


Variable speed drives (VSD's)
regulate the speed of a motor
and can reduce energy
consumption by 30% to 50%

in many applications


Alternative is often to let motor
run at full speed and “throttle”
output (which is like controlling
a car’s speed by braking while
other foot is still on accelerator)





© ABB Group

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Ecological payback time of drives is about a day or less

Carbon footprint for manufacturing


ACS350 (7.5 kW)


54 kg CO2


ACS800 (250 kW)


910 kg CO2

Ecological payback time


ACS350 (7.5 kW)


1,1 (day)


ACS800 (250 kW)


0,5 (day)

Definition


Manufacturing and disposal of a product consume natural
resources and load the environment.


The ecological payback time is calculated as the time needed to
use a product until the one
-
time environmental burden caused by
the product manufacturing has been compensated, thereby
reducing the environmental load. The time quoted is an estimate
based on average usage of drives.


© ABB Group

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Lever

Example

1.
Upgrade equipment

Use high
-
efficiency motors
instead of low
-
efficiency
motors

2.
Change the process

Use variable speed drives
instead of throttles

3.
Change the loading or
scheduling in a process

Compress air during the
night when the air is cooler

4.
Reduce waste

Automate

How can you save energy?


© ABB Group

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Energy efficiency with ABB drives


Good example applications to investigate from different type of industrial
factories and utilities


Power plants


Feed water pumps, cooling water pumps, circulating water pumps, fuel
pumps, feed air blowers, flue gas blowers, district heating water pumps
etc.


Water and wastewater utilities


Raw water pumps, circulating water

pumps, pressure boosting pumps, sewage pumps, aeration compressor,
air blowers, etc


Dairies, sugar mills and other food manufacturing factories


Milk and other liquid pumps, cooling and heating fans, compressors,
centrifuges, etc


Steel plants


exhaust fans for cooling towers, cooling fans for ovens, etc


Potential applications for energy savings


© ABB Group

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Case example


A German coal
-
fired power plant replaced the hydraulic
couplings regulating two boiler feed
-
water pumps of 5.8
MW each with ABB AC drives


Energy consumption was reduced by about 30%


Coal
-
fired power plant

* 0,8 kg/kWh for carbon power plants

Energy saving

About 6,000 MWh/year

CO
2

reduction

About 4,800 tonnes/year*

Segment and application

Power, boiler feed
-
water pumps


© ABB Group

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Case example


A Mexican cement plant replaced the existing damper fan
control of two 735 kW fixed speed ID fans with ABB AC
drives


Revenue increased by about USD 900,000 through
improved productivity


Maintenance was reduced by about 97%

Cement plant

Energy saving

About 5,300 MWh/year

CO
2

reduction

2,650 tonnes/year

Segment and application

Cement, fans


© ABB Group

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The road to an energy efficient factory

Create transparency


Energy use


where, how much, who, why?


Benchmark

Identify the improvement potential


Upgrade components, change the process, change the laoding or
scheduling in the process, reduce waste


Take a holistic perspective, consider the total lifecycle costs


Prioritize: “Quick Hits”, “Big Hits”

Plan the implementation


Pilots


Roll
-
out

Implement


Follow your prioritization


Follo
-
up the savings


ABB can assist with easy
-
to
-
use tools


© ABB Group

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Total savings

3’300 MWh electricity

1’440 metric tons CO
2

$350k costs

Practical example


“Energy Appraisal” to create transparency and identify
targets for energy efficiency measures


First application: Fitting cooling systems with variable
speed drives


Energy savings: 1’250
MWh
/year


$157k cost reduction in one year


The results of the pilot project prompt the customer to
apply the same energy efficiency measures to other
applications


Compressors



750
MWh
/year
saved


Water pumps


1’000
MWh
/year
saved


Oil mist extraction




300
MWh
/year saved


© ABB Group

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BMW factory


Hams Hall, UK

Market barriers and market failures

Market barriers


Low priority of energy issues


Access to capital


Incomplete markets for energy efficiency

Market failures


Split incentives (principle
-
agent problems)


Insufficient and inaccurate information


Distortionary fiscal and regulatory policies


Unpriced costs (externalities)


Unpriced (public) goods

Why energy efficiency measures are underutilized

Source: IEA


© ABB Group

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Principle
-
agent problems

Transactions from an end
-
user perspective

End
-
user can choose
the technology

End
-
user cannot
choose the
technology

End
-
user pays the
energy bill

Case 1: No PA problem
(principal and agent
same entity)

Case 2: Efficiency
problem (agent selects
end using technology,
principal pays the
energy use)

End
-
user does not
pay the energy bill

Case 3: Usage and
efficiency problem

Case 4: Usage
problem


© ABB Group

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Summary


Today’s challenge is to cut link between GDP
growth and consumption, and between consumption
and emissions


Improving energy efficiency and promoting use of
renewable energy are cheapest and fastest options


There is huge potential to reduce energy waste all
along energy chain.


ABB has leading technology at each step


By reducing energy losses, ABB technology:


Mitigates demand for new power generation


Makes better use of natural resources


Makes industry more efficient and competitive


Reduce emissions


© ABB Group

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