Improving Energy Efficiency in Industry
Policy measure

In 2010, the GEF launched the project Improving Energy Efficiency in Industry in Turkey together with the General Directorate of Electric Power Resources Survey and Development Administration and the Technology Development Foundation of Turkey. 


According to GEF (2010), Component 1 focuses on strengthening the policy and institutional framework to support industrial energy efficiency: “While the recently adopted Energy Efficiency Law provides a good basis for advancing energy efficiency of the Turkish industry, there is a need to build the capacities of the key entities engaged for its implementation to effectively meet the objective of the Law as well as to elaborate further measures to enhance its impact.”


The costs associated with Component 1 amount to USD 2.600.000, and the overall project amounted to USD 18.920.000 (GEF, 2010).   

Implementation

The specific sub-components and activities under this Component included:

  • “Updating the sectoral assessment of the current energy consumption and existing energy saving opportunities of the Turkish industry, and by building on the results of the assessment and the review of international best practices and energy consumption of similar industries in other countries, defining and introducing sector specific energy norms/benchmarks to be used as a reference for the targeted industries in promoting energy conservation and the use of energy efficient technologies. For complex production processes with multi-processes and/or multi-products, such as chemicals sector, specific methodologies may also need to be developed for defining appropriate energy norms.

  • Exploring further the possibilities and making recommendations for adopting the norms as a specific policy tool to encourage the targeted industries to improve their energy efficiency with possible financial and/or other incentives for those companies that are meeting the defined energy performance norms. 

  • By building on the intermediate project results and international experiences and lessons learnt, evaluating the existing, public financial incentive and other support or enforcement mechanisms (including a macro level impact and cost-benefit analysis), making recommendations for their further improvement.

  • Strengthening the capacity of the key public authorities (such EIE) and other supporting entities (such as TTGV, OIZs, KOSGEB etc.) to facilitate effective implementation of the adopted policies. For the EIE, the project support is expected to focus primarily on the preparation of complementary training materials and programs for training of energy managers and EECCS (by taking into account internationally available materials already developed for similar purposes) as well as on strengthening EIE’s monitoring and supervision capacity with specific training and capacity building activities targeted for this purpose.  For OIZs, the project will support the establishment of specific energy management units (EMUs) in 5 out of the 245 OIZs in Turkey as models for “centers of excellence” and with a purpose to support the energy management of those SMEs, that are not required by law (and typically can not afford) to hire their own energy managers. These OIZs will be selected among those located in the regions of Marmara, Aegean, Central Anatolia and Southeastern Anatolia and where companies with annual energy consumption ≤ 1000 TOE are of majority. While the baseline costs (premises, staff etc.) of these “pilot EMUs” are expected to be covered by the OIZs and/or KOSGEB, the GEF is requested to cover the costs of their capacity building. This is requested to include also some complementary software, testing and measuring equipment and training for their use to allow the EMUs to approach the SMEs also with some concrete monitoring data and suggestions for simple measures to improve their energy efficiency (such as better insulation, tuning of boilers etc.).

  • Set up a comprehensive database to monitor the energy consumption and savings in the industrial sector; Update sectoral assessment of the current energy consumption and existing energy saving opportunities of the Turkish industry and

  • Building on the results of the assessment and the review of international best practices and energy consumption of similar industries in other countries, define and introduce sector specific energy norms/benchmarks to be used as a reference for the targeted industries in promoting energy conservation and the use of energy efficient technologies.

  • Develop and implement the national energy management standard consistent with ISO Energy Management Standards (EnMS) 50001.

  • Support the establishment of 10 Energy Management Units in selected Organized Industrial Zones (OIZs).

  • Evaluate the existing public financial incentive and other support mechanisms (including a macro level impact and cost-benefit analysis) and elaborate recommendations for their further improvement.” (GEF, 2010)

Challenges
No identified challenges.
Outcomes

The expected outcomes of the projects are (GEF, 2010):

  • “An updated sectoral assessment of the energy consumption and existing energy saving opportunities of the Turkish industry.

  • Adoption of industrial energy norms/benchmarks as a reference and specific policy tool for the targeted industries in promoting energy conservation and the use of energy efficient technologies.

  • Evaluation of the existing, public financial incentive and other support (or enforcement) mechanisms and recommendations for their further improvement.

  • Enhanced capacity of the key public authorities (incl. EIE) and other supporting entities (such as TTGV, OIZs, KOSGEB etc.) to facilitate effective implementation of the adopted policies.

  • Databases on industry and energy use are strengthened and sectoral energy assessment updated.

  • Energy consumption benchmarks formulated and disseminated

  • National Energy Management Standard (EnMS) developed and implemented.

  • Regional energy efficiency support centers established.

  • Financial mechanisms for energy efficiency reviewed and upgraded.”

References

GEF (Global Environmental Facility), 2010. Turkey: Improving Energy Efficiency in Industry. Available at: www.thegef.org/gef/sites/thegef.org/files/documents/document/07-06-10%20Council%20document.pdf.