Motor renovation - Potential savings and views from various EU Member States, by Tomas Jezdinsky - European Copper Institute

1. Motor renovation
Potential savings and views from various EU Member States
- survey results summary -
Prepared for ECI - European Copper Institute
10th ECI Motors Workshop, 16th Sep 2021, Web-Event

2. Motors in industry &
tertiary are used far
beyond their
expected lifetime
(significant % of
operating IE1 and
below still in service).
New motors installed
must meet Ecodesign
regulation, but
dedicated motor
renovation initiative
could harvest earlier
an important
contribution to EU
target.
Saving opportunity,
replicated over several
years:
18 TWh/y for motors
only
45 TWh/y (4Mtoe/y)
for system-level
Energy savings
obligations (EED art.7)
provide the
right framework for
motor renovation;
yet some open issues
to be addressed
Intro & Background
page 2

3. Approach to get initial feedback
page 3
April 2021
WORKSHOP
‘Acelerated Motor
Replacement’
ECI & University of Coimbra
• Barriers for implementation
• Policy options
•  Wide expression of interest
June-Aug 2021
SURVEY (ECI)
• 10 EU Member States
• 75% of EU27 motor electricity
consumption in tertiary and
industrial sectors
• National authorities and energy
agencies involved in the
implementation of EEOs
AT – BE – DE – ES – FR – GR – IT – LU – PL – PT

4. From the interviewed organizations
• 6/10 are “Implementing public authority”,
• the others are involved in EED art 7 mainly as
“Third party (participating or entrusted parties)”.
• Most are responsible for
“Design, implementation, monitoring & verification and/or evaluation of
policy measures under Article 7 of the EED”
• or at least
“Providing technical support to public authorities”.
Interviewed agencies
page 4

5. Overview table on key survey results:
page 5
Country Motor renovation
programme in place?
(yes - past - no)
Comments How does this potential
compare to other
catalogue actions?
(higher - same - lower)
Need for further support?
(yes - not sure - no)
AT past same yes
BE no same yes
DE only part of larger
industry frame scheme
same yes
ES no ? yes
FR yes, as part of
standardized measures
for WC
Only IE4 motors ? yes
GR no same yes
IT dedicated motor
programme under
consideration
Today under
standardized measures
for WC only if savings
>58MWh/a
same yes
LU yes Simple standardized
measure & calculation
methodology
same yes
PL no higher yes
PT no ? yes

6. Q) How important are these – theoretical – energy savings through a
dedicated motor renovation initiative compared to existing targets and
experiences with other measures?
• 6/10 stated a relevant potential to further look into detail how to exploit this
potential in motors.
• One country (Poland) even considers this estimate as higher than many
current measures.
• 3/10 have no clear view on this issue.
“Would fit well as dedicated action and addition to the more general measures like emission
taxes, CO2 price, etc...”
“Assuming that old motors are replaced at a pace of 10% per year, yielding 10% of this
savings potential at the first year (2021) and 100% of the savings at year 2030, this would
result in cumulative final energy savings over the entire reporting period 2021-2030.”
Attractiveness of potential of motor
renovation programme is well recognized.
page 6

7. Q) To develop a motor renovation programme, what support measures
would be most welcome?
Support measures to implement a motor
renovation programme.
page 7
0 1 2 3 4 5 6 7 8 9 10
EED Art 8. Exchange of experience and assessment of
the role of energy audits and energy management
systems to identify motor renovation opportunities
Development of a methodology to discriminate savings
generated by the Ecodesign (avoid double counting)
Assessment of options to reap the savings associated
to the systems (such as pumping or ventilation system)
Development of a methodology for savings calculation
Assessment of the savings potential through an EU-
wide study
n/10

8. Q) Regarding the exchange of experiences and best practices, which
information are most relevant & needed?
Need for information exchange and peer-to-
peer experience sharing:
page 8
0 1 2 3 4 5 6 7 8 9 10
Minimum efficiency requirements. Modulation of
intensity of incentives.
Possible business models
Economic support mechanisms
Policy measures / design of programmes
Possible EU-wide harmonization in terms of
methodology for calculation of savings and key
policy parameters
n/10

9. • Although the hypothetical potential of energy savings through motor renovation
before Ecodesign seems well recognized, there is at present no pro-active
campaign in place to “push” for this.
• Calculation methodology seems rather easy and simple and would help to
establish a harmonized methodology to be accepted by the EC, accountable
under EED.
• New base data is needed, through a thorough study to assess the true status
of motor stock in the EU-27 to assess the real savings potential and to adapt
indicative values for a simplified calculation methodology.
• Need to establish a common peer-to-peer dialogue platform and ideally have
some Pan-EU support mechanisms to optimize national & regional dedicated
programmes.
• Solid business models seem to be key to convince industry (specifically SMEs)
and how to get access to energy assessments in their local incentive
programmes.
page 9
Some Conclusions

10. Potential of renovation of motors (also to upgrade in some cases with a VSD)
is already high (18 TWh/year of electricity) and much higher on a “system
level” (about 45 TWh/year of electricity). We need to consider how to take
these savings into consideration – and to prove additionality.
Further information exchange and dialogue between EU Commission,
national agencies & authorities and industry (incl. associations) is key.
page 10
Summary & Outlook:

11. If you have any further question or comment, please contact:
Re ECI‘s Motor Initiative: Fernando Nuño
Portfolio Manager, Energy and Climate
European Copper Institute, Brussels/BE
fernando.nuno@copperalliance.org
Re Motor Renovation Survey: Tomas Jezdinsky
Market Research Consultant
tomas.jezdinsky@copperalliance.org
Many thanks for your attention !
page 11

12. Appendix
page 12

13. 1) Assessment of the savings potential through an EU-wide study
“A study must take into account the regional differences in EU countries, levels of
industrialization use time, load profiles, age, types, etc...need to build data on
regional clusters and not only 1-2 countries to allow extrapolation to entire EU27”
“...also include different national prices of energy (electricity vs natural gas) to
industry”
“Need to show the real age distribution and also the real efficiency levels of
running motor stock (e.g. effects of aging, bad maintenance a/o refurbishment
which could even lower the motor efficiency than improve it)”
Support measures to implement a motor
renovation programme – comments:
page 13

14. 2) Development of a methodology for savings calculation
“Need a simple & standardised methodology to make the assessment of savings
upfront easy.”
“Member States should know in advance if their calculations will be approved by
the EC.”
“ Good to develop a standardized calculation, also as soft measure for industry
as add-on to already existing calculation for tertiary & industrial buildings
savings.”
“Motor replacement is not a high-tech measure, while it can result in significant
savings. EC should allow Member States to set up simple measures (such as
grants) and straightforward savings calculations.”
Support measures to implement a motor
renovation programme – comments:
page 14

15. 3) Assessment of options to reap the savings associated to the systems
(from simple motor replacement to complete system upgrade, such as
pumping or ventilation system)
“System approach as integral saving assessment will introduce a changing
element and new perspective.”
“...need to include system level considerations (e.g. use cases for different motor
applications, environment, etc)...Sometimes, the system is not well optimized, so
only replacing the single motor without understanding the entire system efficiency
might not bring the full savings.”
“The costs involved in system upgrades must prove their cost effectiveness. Any
cost subsidies must follow the rules of public aid, easier on system level, per
project. “
Support measures to implement a motor
renovation programme – comments:
page 15

16. 4) Development of a methodology to discriminate savings generated by the
Ecodesign motors regulation from those generated by motor renovation
programmes in the context of EED Art 7 (avoid double counting)
“Must really prove easily the additionality to anyway Ecodesign driven motor
replacements, beyond IE2 level”
“Need to prove the real savings comparing the real old motor and prove
anticipation – key to avoid doubts about double savings...in the past, authorities &
obligated parties were always concerned about the bureaucratic burden (e.g.
need for a detailed engineering report) to show this “additionality” vs Ecodesign”
“The challenge to achieve the revised targets is huge. Member States need to be
sure that the measures they implement will be counting towards the EED art.7
target. Also: Ecodesign should not ‘eat’ all savings, leaving little potential for
additional measures (additionality) under art.7”
Support measures to implement a motor
renovation programme – comments:
page 16

17. 5) EED Art 8. Exchange of experience and assessment of the role of energy
audits and energy management systems to identify motor renovation
opportunities. Possible measures to incentivize their implementation.
Information / dissemination / awareness raising campaigns
“Audits can make the bridge to analyse which measures are connected to which
financial programmes and help to identify to companies (especially SMEs) which
incentives are available and where to apply for.”
“To prove industrial cost effectiveness and pay-back is a bottle-neck. Awareness
raising and information proving with “real numbers” might convince industry to
better adapt and include motor renovations into audits.”
“We need to get audits and audit guidelines to understand how a motor is “really”
running at a site. Ecodesign only takes into account the single motor, but not the
system how the process is running.”
Support measures to implement a motor
renovation programme – comments:
page 17

18. 1) Possible EU-wide harmonization in terms of methodology for calculation
of savings and key policy parameters
“…necessity to provide certainty on eligibility of the measures and how they count
towards the targets.”
“... always looking to learn from neighbour countries practices what work
effectively and to adapt easily for their own catalogue…”must not reinvent the
wheel”
Information needs – comments:
page 18

19. 2) Policy measures / design of programmes
“CA EED would be a good information platform to share & discuss policy
measure experiences...need a technical peer-to-peer exchange.”
“It will be important also coordinating between regional, local & national
programmes… make them aware is key.”
“Need to learn about policy instruments – bonus or malus solutions – and how
these work in other countries.”
“Information on how other Member States design their programme. Mandatory
requirements or only incentivizing? Do they use grants and what is the
recommended level of the grant to make it effective?”
Information needs – comments:
page 19

20. 3) Economic support mechanisms
“... need a better coordination also with regional programmes & funds for SMEs”
“Need a mix of centralized vs regional fundings & support. Economic support
without much bureaucratic burdens...how do other countries motivate their
industry?”
“Need to raise awareness at industry to motivate their willingness to invest and
where to find the right support.”
Information needs – comments:
page 20

21. 4) Possible Business Models
“Business models showing a fast & interesting pay-back in a few years plus how
to easily get financial programmes & incentives are the best way to motivate
industrial decision makers. Even if energy manager favour a replacement of
motors, the final decision is at the financial mng level (even more important with
SMEs) based on ROI.”
“For a) convincing of industry and b) to allow adequate design of policy measures
– which options and which financial aids are most effective?”
“This is an important info for SMEs to motivate management for changes without
need to run their own expensive & timely analysis, if they could refer to similar
examples...should also be shared & linked to external energy consultants who
are often assessing the SMEs in energy planning”
Information needs – comments:
page 21

22. 5) Minimum efficiency requirements. Modulation of intensity of incentives.
“...to define a mix of measures and check which are most cost effective.”
“Tools need to be promoted and make industry aware how/ where to find the right
information and how to use it easily”
“Information exchange on what to support and how to support most effectively...,
e.g.; compare tax incentives across countries.”
“Past experience with motor renovation programmes has shown that too
bureaucratic processes may discourage access to such incentives. A simple
incentive scheme for the replacement of old inefficient motors would be welcome
to help achieve the energy reduction targets.”
Information needs – comments:
page 22