Industrial Efficiency

Texas was the first U.S. state to enact an Energy Efficiency Resource Standard in 1999 and leads the nation in installations of combined heat-and-power. However Texas, Oklahoma, and eleven other states currently allow industrial and some large businesses to opt out of participating in ratepayer-funded utility energy-efficiency incentive programs. Texas and Oklahoma are one the nation’s leading industrial regions with substantial economic potential for additional energy efficiency, and Texas is estimated to rank first in the U.S. for industrial energy efficiency’s potential to reduce CO2 emissions.

An industrial efficiency feasibility analysis was conducted for SPEER by the Texas A&M Energy Systems Laboratory (ESL). We found that a voluntary program to encourage implementation and reporting of common energy efficiency recommendations by small to medium-sized industries could collectively save 3.1 million MWH of electricity and 3,460 MW of electricity demand. If large industry is also included, these numbers are up to 10 times greater. A major co-benefit associated with this energy savings is the opportunity to reduce NOX emissions in Texas by 750 metric tons annually (a precursor to ozone/smog), which is comparable to annual savings from the Texas Emissions Reduction Plan (TERP) programs. Broader implementation of a program to include large industries could potentially save Texas 17,300 metric tons of NOX and 13.4 million tons of CO2 annually. Savings would be proportionally similar in Oklahoma, demonstrating significant potential impact across the South-Central region. Emissions Reductions Potential from Common Energy Efficiency Projects in Small to Medium-Sized Industries. 

SPEER worked with ESL to develop the framework and seeks to establish a voluntary reporting mechanism for verified energy efficiency projects that are implemented by manufacturing or industrial customers in this region. Such a standardized tracking and verification system will allow leaders in industry to receive recognition for voluntary energy efficiency improvements they are undertaking, receive credit for contributing to the region’s efforts to improve air quality through energy efficiency, and encourage future investment by others. Final Report: Capturing the Multiple Benefits of Industrial Energy Efficiency.

The proposed voluntary reporting framework includes:

  •  A system that builds upon the national IAC (Industrial Assessment Center) database for congruence / familiarity by industrial assessment centers;
  • Ability to report various energy efficiency measures such as repairing compressed air leaks, lighting retrofits, boiler tune-ups, VFDs, sensors, and controls;
  • A simple and inexpensive verification path for building owners or service providers with long term reportable savings, based on established M&V procedures in the industry;
  • Calculates both NOx and CO2 emissions reduction associated with the energy savings; and
  • Protects the privacy of data, which publicly reports only aggregate annual savings to demonstrate savings.