Policy Implications of Greenhouse Warming Mitigation, Adaptation, and the Science Base (1992) / Chapter Skim
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D Conservation Supply Curves for Industrial Energy Use
D Conservation Supply Curves for Industrial Energy Use
Pages 717-726
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and to the often proprietary nature of industrial process technology. Thus, although technical aspects of industrial energy use have been studied extensively, economic assessments remain largely lacking at this time, especially with regard to fundamental process design changes, which offer some of the potentially most significant energy reduction measures.
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Figures D.1 to D.3 show the electricity conservation supply curves first developed for individual manufacturing industries. The curve for fabrication and assembly (Figure D.1)
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11 ~ · glass furnace preheat adjusted Japanese point for cement 0 5 10 15 CUMULATIVE SAVINGS (percent) 20 25 30 FIGURE D.3 Supply curve: Process industries excluding aluminum.
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By using Ross's original curve for a 33 percent capital recovery factor (which corresponds to a discount rate of 30 percent over a 10-year project life) , curves for real discount rates of 3, 6, and 10 percent were also developed, based on a 10year project life.
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To the extent that actual marginal costs are higher in the future, the current estimates of net cost are conservative. For the maximum electricity savings of 200 BkWh, Figure D.5 shows a net negative cost for the 3, 6, and 10 percent discount rates of -$30, -$20,
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are comparable to those reported by the Electric Power Research Institute (EPRI) in a study of the maximum technical potential for electricity savings (Electric Power Research Institute, 1990~.
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SOURCE: Electric Power Research Institute (19901. tent of natural gas)
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, Electric Power Research Institute (1989) , Larson and Williams (1985)
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for Electric Power Research Institute. Palo Alto, Calif.: Electric Power Research Institute.
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Report EPRI P-6587-L. Palo Alto, Calif.: Electric Power Research Institute.
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