Near-Zero Zone Project
Policy measure

In 2011, the U.S. Department of Energy (DOE), in collaboration with other U.S. agencies, launched the so-called Near-Zero Zone Project - a demonstration project for industrial energy efficiency in Turkey.


According to export.gov (2011), the project, “which has the support of the Turkish government and business organizations, will help industrial companies operating within the Izmir Ataturk Organized Industrial Zone (IAOSB) to reduce their energy intensity through a series of cost-effective efficiency upgrades. The project aims to demonstrate the impact that reducing energy consumption can have on companies’ profitability, promote bilateral trade and investment, and serve as a replicable model for companies and industrial zones throughout Turkey.”

Implementation

Key components of the Near-Zero Zone project will include (export.gov, 2011):

  • Baseline Energy Audit: ORNL, a DOE national lab, is expected to conduct a preliminary energy audit for the participating companies. The audit will measure current energy usage and identify areas in which energy consumption can be reduced. This baseline data will ultimately be compared to data gathered at the project’s conclusion to determine the impact of the energy efficiency measures.

  • Technical Assessments: For the IAOSB zone management company and approximately 20 participating companies, experts will develop detailed studies of their energy consumption and issue recommendations on cost-effective energy efficiency measures. Each recommendation developed will include the cost of implementation and the potential impact on profitability so that companies can make business-motivated decisions. TDA and OPIC are expected to finance up to twenty technical assessments. Other financial sources may become available to fund additional technical assessments.

  • Energy Efficiency Upgrades: Based on the recommendations developed in the experts’ technical assessments, the zone management and companies will be provided with information on appropriate equipment and service suppliers. The U.S. Commerce Department will provide direct access to a number of equipment and service suppliers through a trade delegation scheduled for autumn 2011. Companies will also be introduced to various lenders – including EBRD, TURSEFF, OPIC, Ex-Im and others – and offered financing options from which they can choose based on their business needs.”

To realize the full benefit of the demonstration projects, “DOE has requested that Turkish business organizations disseminate the findings to their member companies through whatever means they believe will have the greatest impact. This is intended to make companies across Turkey aware of the positive effect that energy efficiency can have on their bottom line.” (export.gov, 2011)

Challenges
No identified challenges.
Outcomes

According to export.gov (2011), the project “represents a ‘win-win’ for Turkish and American companies, as well as the U.S. and Turkish governments. On the Turkish side, companies would benefit directly from U.S. technologies, financing, and associated reductions in energy costs while the government would benefit from the sharing of best practices and reduction in industrial sector energy consumption. On the U.S. side, companies would be able to provide equipment and services to up to 500 companies in the industrial zone, as well as to establish a strong foothold in Turkey’s growing energy efficiency and clean energy markets.”

References

Export.gov, 2011. U.S. Energy Efficiency Projects in Turkey. Available at: http://export.gov/turkey/u.s.energyefficiencyprojectsinturkey/index.asp.