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The State of Energy Efficiency in Canada, Office of Energy Efficiency Report 2005

Industry

Market Trends

For the purposes of this report, the industrial sector includes all manufacturing activities, all mining activities, forestry and construction. However, it excludes electricity generation. In 2002, the industrial sector accounted for approximately 39 percent of secondary energy use in Canada and 34 percent of related greenhouse gas (GHG) emissions. Pulp and paper, an important sector in Canada's economy, accounted for almost 27 percent of total industrial energy demand in 2002.

Actual industrial energy use increased by approximately 17 percent between 1990 and 2002. This is the result of an increase in industrial activity, which grew by about 44 percent. Some of this increase was offset by improvements in energy efficiency and structural change – the shift to less energy-intensive industries (such as electrical and electronics).

GHG emissions from the industrial sector increased by 15 percent between 1990 and 2002. However, a significant shift toward the use of less GHG-intensive fuels in the industrial sector has meant that the level of GHG emissions is lower than it would have been otherwise.

Promoting Energy Efficiency

In the industrial sector, energy is used primarily to produce heat, to generate steam or as a source of drive power. Energy efficiency improvements are most readily achieved in equipment and processes that are common to many industries, such as motors and auxiliary systems. Continued switching from fossil fuels to GHG-neutral energy sources (such as wood and pulp waste) represents another opportunity to reduce emissions from this sector.

The Office of Energy Efficiency's (OEE's) approach in the industrial sector is to

• implement more stringent minimum efficiency standards for electric motors, fluorescent and incandescent lamps, exit signs, dry-type distribution transformers and medium duty electric motors; and
  
  
• encourage and make voluntary action easier, both industry-wide and at the company level, to improve energy efficiency.

OEE initiatives at the sector and company levels address barriers to planning, implementing, tracking and reporting energy efficiency projects in industry.

Selected Progress Indicators for Industry

• During fiscal year 2003-2004, 147 new Industrial Energy Innovators were recruited (see Figure 15).
  
  
• The Canadian Industry Program for Energy Conservation (CIPEC) has a network of more than 45 trade associations that targets all of industry, including industrial mining, manufacturing, construction, upstream oil and gas and electricity generation. Effective energy management by CIPEC companies resulted in $3.4 billion in savings in 2002. As Figure 16 demonstrates, significant energy intensity improvements occurred in the latter part of the decade. Between 1996 and 2002, energy intensity decreased by 11 percent.
  
  
• According to a recent study, there is a statistically significant difference between energy consumed by CIPEC participants and non-participants. The growth of energy consumption for CIPEC participants was about half that of non-participants. Three times more participants reported reduced energy use than non-participants. And 15 percent fewer participants reported an increase in energy use than non-participants.
  
  
• In fiscal year 2003-2004, the Industrial Building Incentive Program (IBIP) trained 17 architects and engineers in energy-efficient industrial building design. Modelling guidelines for industrial buildings were also completed.

The OEE's Industry Program

The Canadian Industry Program for Energy Conservation and Energy Innovators are sectoral- and company-level initiatives, respectively. They address barriers to planning, implementing, tracking and reporting energy efficiency projects in Canadian industry. Key elements include the establishment and tracking of energy efficiency improvement targets and plans, and the development of products and services that overcome barriers to continued energy efficiency improvement. The OEE provides support via employee awareness kits and events, best-practices guides, technical information, energy audits, benchmarking and workshops on energy management.

For more information, visit the Web site at oee.nrcan.gc.ca/cipec.

The Industrial Building Incentive Program (IBIP), also part of the OEE's Industry Program, aims to increase the energy efficiency of newly constructed industrial buildings. IBIP, a five-year program scheduled to run until March 2006, consists of an evaluation and selection of 6-10 projects annually from proposals. IBIP offers an incentive of up to $80,000 to companies that are building new industrial facilities to offset additional design costs inherent in the initial attempts at energy-efficient design.

For more information, visit the Web site at oee.nrcan.gc.ca/newbuildings.