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Finding and Implementing Energy Efficiency Projects in Industrial Facilities

Author

Listed:
  • Sam Aflaki

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Paul R. Kleindorfer

    (INSEAD - Institut Européen d'administration des Affaires)

  • Victor Sáenz Miera Polvorinos

Abstract

This study addresses the challenges of finding and implementing profitable energy efficiency (EE) projects, a critical foundation for sustainable operations. We focus on manufacturing enterprises, but many of our findings apply also to the back office of service operations. Our starting point is that, in nearly every industrial enterprise, there are many profitable EE projects that could be implemented but are not. An oft-cited hindrance to implementation is the lack of an internal management framework in which to find, value, and execute these projects. Using a conceptual approach, we rely on proven sustainable operations tools to develop such a framework. We identify three major value drivers of EE projects: savings intensity, 'green' image, and project complexity. We then describe a framework for understanding the context of EE projects in industry, with an underlying analytic foundation in optimal portfolio analysis. A case study of a large manufacturing site is used to illustrate emerging best practices-based on Kaizen management principles-for integrating EE project management with operations, engineering, and strategy.

Suggested Citation

  • Sam Aflaki & Paul R. Kleindorfer & Victor Sáenz Miera Polvorinos, 2013. "Finding and Implementing Energy Efficiency Projects in Industrial Facilities," Post-Print hal-00823923, HAL.
    • Handle: RePEc:hal:journl:hal-00823923
    DOI: 10.1111/j.1937-5956.2012.01377.x
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    Citations

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    Cited by:

    1. Mette Talseth Solnørdal & Lene Foss, 2018. "Closing the Energy Efficiency Gap—A Systematic Review of Empirical Articles on Drivers to Energy Efficiency in Manufacturing Firms," Energies, MDPI, vol. 11(3), pages 1-30, February.
    2. Lui, Ariel K.H. & Lo, Chris K.Y. & Ngai, Eric W.T. & Yeung, Andy C.L., 2021. "Forced to be green? The performance impact of energy-efficient systems under institutional pressures," International Journal of Production Economics, Elsevier, vol. 239(C).
    3. Qi Zhou & Xiangfeng Chen & Shuting Li, 2018. "Innovative Financial Approach for Agricultural Sustainability: A Case Study of Alibaba," Sustainability, MDPI, vol. 10(3), pages 1-20, March.
    4. Dong, Kangyin & Dou, Yue & Jiang, Qingzhe, 2022. "Income inequality, energy poverty, and energy efficiency: Who cause who and how?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    5. Binbin Li & Yu Tian & Fred Chen & Tongdan Jin, 2017. "Toward net-zero carbon manufacturing operations: an onsite renewables solution," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(3), pages 308-321, March.
    6. Ouyang, Jianjun & Fu, Jie, 2023. "Energy-saving and subsidy policy decisions for double competition manufacturers," Energy Economics, Elsevier, vol. 117(C).
    7. Doh Dinga, Christian & Wen, Zongguo, 2021. "Many-objective optimization of energy conservation and emission reduction in China’s cement industry," Applied Energy, Elsevier, vol. 304(C).
    8. Konstantina Valogianni & Wolfgang Ketter & John Collins & Dmitry Zhdanov, 2020. "Sustainable Electric Vehicle Charging using Adaptive Pricing," Production and Operations Management, Production and Operations Management Society, vol. 29(6), pages 1550-1572, June.
    9. Karan Girotra & Serguei Netessine, 2013. "OM Forum —Business Model Innovation for Sustainability," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 537-544, October.
    10. Afshari, Hamid & Searcy, Cory & Jaber, Mohamad Y., 2020. "The role of eco-innovation drivers in promoting additive manufacturing in supply chains," International Journal of Production Economics, Elsevier, vol. 223(C).
    11. Sa, Aida & Thollander, Patrik & Cagno, Enrico, 2017. "Assessing the driving factors for energy management program adoption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 538-547.
    12. Kelly M. Smith & Stephen Wilson & Paul Lant & Maureen E. Hassall, 2022. "How Do We Learn about Drivers for Industrial Energy Efficiency—Current State of Knowledge," Energies, MDPI, vol. 15(7), pages 1-26, April.
    13. Lidia Sanchez-Ruiz & Beatriz Blanco & Juan A. Marin-Garcia & Elsa Diez-Busto, 2020. "Scoping Review of Kaizen and Green Practices: State of the Art and Future Directions," IJERPH, MDPI, vol. 17(21), pages 1-19, November.
    14. Li, Yanan & Lin, Jun & Qian, Yanjun & Li, Dehong, 2023. "Feed-in tariff policy for biomass power generation: Incorporating the feedstock acquisition process," European Journal of Operational Research, Elsevier, vol. 304(3), pages 1113-1132.
    15. Nguyen, Jason, 2024. "Beyond policy impacts: Internal strategic capabilities as determinants of industrial energy efficiency implementation," Energy Policy, Elsevier, vol. 184(C).
    16. Xu Liu & Bo Shen & Lynn Price & Ali Hasanbeigi & Hongyou Lu & Cong Yu & Guanyun Fu, 2019. "A review of international practices for energy efficiency and carbon emissions reduction and lessons learned for China," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(5), September.
    17. Jason Nguyen & Karen Donohue & Mili Mehrotra, 2019. "Closing a Supplier’s Energy Efficiency Gap Through Assessment Assistance and Procurement Commitment," Management Science, INFORMS, vol. 65(1), pages 122-138, January.

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