Factory bosses in China are looking at ways to cut costs through greater energy efficiency. A recent article in Bloomberg Businessweek reports
that for decades after China started trading with the United States in
1979, most factory managers didn’t focus on electricity prices.
During
those years, demand from abroad was expanding, labour was cheap and the
exchange rate favored China’s exporters. But in the wake of the 2008
global financial crisis, conditions have changed. Kevin Chang,
general manager of Concord Ceramics, based in Dongguan in Guangdong
province, told Businessweek that his labour costs have doubled and the
exchange rate is less favourable. He sees increasing energy efficiency
as one way to shore up the bottom line.
The work at Concord Ceramics requires constant air conditioning and,
in the summer, electricity accounts for as much as 15% of operating
costs. Chang installed a high-volume air-conditioning system to cut
expenses, but once the system was up and running, his electricity bill
went up. He brought in an engineer from the China Academy of Building
Research, a government think-tank, who deduced that the cooling system
was more powerful than the factory needed. The air conditioning was
constantly cycled between maximum cooling and powering down, therefore
wasting energy. The solution was to run just half of the unit. The air
remains at a steady temperature and Chang says he will save about 40% on
electricity bills.
Another company, Shenzhen Black-Cloud
Packaging, which makes packaging material for clients, including Apple,
installed four giant ceiling fans imported from the US. Each one
replaced 40 desk fans, using a tenth of the energy. “The problem is not
usually lack of technology, but lack of expertise to operate energy
systems,” Samuel Zhou, an energy consultant in Shanghai, told
Businessweek. “With pollution, you can see it or smell it. Energy is
invisible. You cannot tell a motor is running inefficiently without data
intelligence.”
Taryn Sullivan, CEO of global supply-chain
analytics company, Efficiency Exchange, has spotted energy waste at
every factory in China she has visited. She estimates an average
potential savings of 13%. At Circle Furniture, also based in Guangdong,
her firm analyzed the electricity bills and concluded that the company
was paying the local utility a monthly fine for drawing more current
than needed, which increased the amount of energy lost in transmission. A
simple mechanical adjustment resolved the issue.
In a related story, the US Institute for Industrial Productivity
has started a new project with the Dezhou Energy Conservation and
Supervision Centre (ECSC) to drive the adoption of energy management
systems in some of China’s biggest industrial enterprises. The ECSC is
the Chinese government organization responsible for reducing energy use
in Dezhou city in Shandong province, one of the country’s most
industrialized areas.
Through the partnership, 52 industrial
enterprises in Dezhou will receive assistance to adopt an energy
management system (EnMS) by June 2014. EnMSs are widely considered to be
one of the single, most important factors in reducing the energy use of
industrial operations.
Wang Shiyan, Director of Dezhou ECSC, said
the government is promoting EnMS across China, and implementation has
now started with the pilot in Dezhou. “The Chinese government is
determined to cut energy use across the country. If this scheme is
successful, it will be rolled out in other cities in China. This could
lead to huge cuts in energy use and greenhouse gas emissions
countrywide,” he said.
http://theenergycollective.com/charles-arthur/313706/china-s-factory-owners-look-energy-savings
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