An analysis of the cost-effectiveness of energy efficiency measures and factors affecting their implementation: a case study of Thai sugar industry

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Author list: Sathitbun-anan S., Fungtammasan B., Barz M., Sajjakulnukit B., Pathumsawad S.

Publisher: Springer

Publication year: 2014

Journal: Energy Efficiency (1570-646X)

Volume number: 8

Issue number: 1

Start page: 141

End page: 153

Number of pages: 13

ISSN: 1570-646X

eISSN: 1570-6478

URL: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84920707488&doi=10.1007%2fs12053-014-9281-7&partnerID=40&md5=583fec74cc4f67ca8dbaca973134bae9

Languages: English-Great Britain (EN-GB)

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Abstract

We use bottom-up conservation supply curves (CSC) to analyze the cost-effectiveness of various energy efficiency measures for the Thai sugar industry. The study was conducted in two parts. First, energy efficiency measures were identified from data collected from five leading Thai sugar mills (four recommended by the Office of the Cane and Sugar Board and the last being owned by the world’s sixth largest sugar producer). The CSC indicates that 15 energy efficiency measures are cost-effective and 2 measures are not cost-effective. Next, we surveyed nine other Thai sugar factories to consider the average potential energy saving and the factors which might influence implementation of such energy efficiency measures. The average energy saving currently being achieved by the nine factories is 77 %, which indicates that 23 % of the energy saving potential is not being achieved. The key driving forces indicated by the nine factories were the potential to reduce energy costs and creating a good “green” image for the company. The main barriers were investment attitudes towards high investment cost and the low commercial value of bagasse. In relation to investment attitudes, it was found that Thai sugar mills focus on sugar production capacity and lack interest in energy efficiency measures, especially those which require a high investment cost. This is partly because the industry produces low commercial of bagasse that can be used to generate electricity, so that energy is not seen as an important cost of production. © 2014, Springer Science+Business Media Dordrecht.

Keywords

Conservation supply curve (CSC), Cost-effective energy efficiency, Driving forces, Energy efficiency barriers, Thai sugar industry