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Indicator Assessment

Energy efficiency and energy consumption in industry

Indicator Assessment
Prod-ID: IND-305-en
  Also known as: ENER 025
Published 08 Aug 2011 Last modified 11 May 2021
14 min read
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Over the period 1990-2008, in EU-27 countries, energy efficiency in industry has improved by 30% at an annual average rate of 1.9% per year, with large differences among countries. Energy efficiency improvement has been realized in all industrial branches except textiles. Over the same period of time, per capita energy consumption in industry in EU-27 countries has decreased by 18%, with a faster pace in the new member countries, Germany, Belgium, France and the UK while the CO2 emissions (including those associated with electricity consumption) decreased by 23%.


Energy efficiency index (ODEX) in industry in EU-27

Note: Energy efficiency index of industry (ODEX) is a weighted average of the specific consumption index of 10 manufacturing branches; the weight being the share of each branch in the sum of the energy consumption of these branches in year t and the sum of the implied energy consumption from each underlying industrial branches in year t (based on the unit consumption of the sub-sector with a moving reference year).

Data source:

ODYSSEE database (last update : August 2009). ODEX EU-27 in industry. The Odyssee database is available at  http://www.odyssee-indicators.org/   The access is restricted to project
partners or subscribers

 

Energy efficiency improvement (ODEX) in EU-27 countries

Note: Energy efficiency index of industry (ODEX) is a weighted average of the specific consumption index of 10 manufacturing branches; the weight being the share of each branch in the sum of the energy consumption of these branches in year t and the sum of the implied energy consumption from each underlying industrial branches in year t (based on the unit consumption of the sub-sector with a moving reference year).

Data source:

ODYSSEE database (last update : August 2009). ODEX EU-27 in industry. The Odyssee database is available at  http://www.odyssee-indicators.org/   The access is restricted to project partners or subscribers

  • Over the period 1990-2008, energy efficiency in industry has improved in EU-27 countries by around 30%, at an annual average rate of 1.9 % per year (Figure 1). Greater progress was achieved in the nineties but slowed down somehow in more recent years (2.3 % per year over 1990-2000 against 1.5 % per year after 2000).
  • There is a large difference among countries concerning progress towards improving the energy efficiency (Figure 2). Among the ten countries with the highest improvement in energy efficiency there are six new EU Member States. Energy efficiency improvement in industry results from technical improvement in industrial process and electric motors, encouraged by policies combining voluntary agreements (e.g. with CEMEP for motors), investment subsidies or audit schemes.

% change in industry final energy consumption per capita (1990-2008)

Note: Based on the ratio : energy consumption / population (%/year calculated on the period 1990-2008)

Data source:

EUROSTAT

 

  • Over the period 1990-2008, improvements took place in all industrial branches except the textile industry. The three most energy intensive branches (chemicals, steel and paper), which represent over 50% of the energy consumption of the sector, reduced their specific energy consumption, i.e. energy consumption per unit of physical output, by 53%, 27% and 11% respectively. Significant improvements were also made in the machinery and cement industries which reduced their specific energy consumption by 39% and 24% respectively (Figure 1).

 

  • From 1990 to 2008, per capita energy consumption in industry decreased by 18% in the EU-27 or 1.1% a year (Figure 3). The decrease was very strong in most new member countries, particularly in the Baltic countries and Romania (more than 60%) due to changes in the structure of the industrial activity (i.e. in the share of each individual industrial branches in the total value added of the sector. There was also a reduction in the 3 largest EU countries, Germany, France and UK (respectively -19%, -10% and -13%); this trend is the result of a low growth of the sector and of structural changes towards less intensive branches. The consumption increased by more than 20% in Finland and Austria because of a development of more intensive branches (e.g. pulp and paper in Finland).

 

  • In 2008 energy consumption per capita has decreased by 4.3%/year and concerned almost all the countries except five countries where consumption per capita remained quite stable (Estonia, Netherlands) or increased (Romania 1.1%, France 3.3%, Cyprus 7.5%).

Benchmarking in the pulp and paper industry

Note: The figure displays the unit energy consumption per ton of paper as a function of the ratio pulp production to paper production: the higher the ratio, the higher the energy unit consumption.

Data source:

ODYSSEE database (last update : October 2010). The Odyssee database is available at http://www.odyssee-indicators.org/  The access is restricted to project partners or subscribers

Benchmarking in the steel industry

Note: Figure shows a more detailed comparison of the performance (in terms of energy unit consumption) of the European steel sector across the different EU-27 countries taking into account the relative share of electric steel in total crude steel production.

Data source:

ODYSSEE database (last update : October 2010). The Odyssee database is available at http://www.odyssee-indicators.org/   The access is restricted to project
partners or subscribers

Benchmarking in the cement industry

Note: Figure compares the energy unit consumption of cement in EU countries as a function of the share of clinker: the higher this ratio, the higher the specific energy consumption.

Data source:

ODYSSEE database (last update : October 2010). The Odyssee database is available at  http://www.odyssee-indicators.org/   The access is restricted to project
partners or subscribers

 

When analyzing specific energy consumption trends in industrial branches, one has to account for the specificities in terms of process mix and product mix. For steel, there are basically two main production processes: the blast furnace oxygen process and the arc furnace electric process. The first one is much more energy intensive. For paper and cement, part of the energy intensive component, pulp and clinker respectively, may be imported instead of being produced in the country, which will reduce the unit energy consumption, all things being equal .

  • Figure 4 shows a more detailed comparison of the performance (in terms of energy unit consumption) of the European steel sector across the different EU-27 countries taking into account the relative share of electric steel in total crude steel production. The vertical distance to the red line (benchmark) shows the technical improvement possible at the given process mix of the country.
  • Figure 5 compares the energy unit consumption of cement in EU countries as a function of the share of clinker: the higher this ratio, the higher the specific energy consumption. The vertical distance from the world best practice (benchmark based on the best available in terms of specific energy consumption) shows the technical improvement possible at a given clinker/cement mix of the country; in other words it indicates the potential of energy savings.
  • Energy unit consumption in the pulp and paper industry is very different among countries: it varies by a factor of 2-3 from a minimum of 0.25 toe/tonne to 0.7 toe/tonne (Figure 6). Low values may mean that most of the pulp is imported and high values that pulp is exported. Therefore, to make the comparison more meaningful, Figure 6 displays the unit energy consumption per ton of paper as a function of the ratio pulp production to paper production: the higher the ratio, the higher the energy unit consumption.
     

 

CO2 emissions in EU countries (1990, 2008)

Note: The figure shows the CO2 emissions in the industry in EU Countries

Data source:
  • CO2 emissions from fuel combustion in industrial plants were around 25 % lower in 2008 than in 1990 in the EU-27. If we add the indirect emissions due to electricity consumption in industry, total emissions (direct and indirect) have decreased by 23%. Indirect emissions (or electricity related emissions) represent around 45% of total CO2 emissions for the EU-27 as a whole, with a large scope according to countries, depending on the power mix (from 16% for France to 80% for Estonia or 84% for Malta).
  • Total CO2 emissions have decreased in almost all the countries since 1990 except in six countries, Portugal 0.5%, Austria 20%, Ireland 26%, Spain 34 %, Cyprus +72% and Malta.

Supporting information

Indicator definition

  • Specific consumption per tonne produced : Energy consumption divided by the physical production (for steel, cement , paper)
  • Energy efficiency index of industry (ODEX) is a weighted average of the specific consumption index of 10 manufacturing branches; the weight being the share of each branch in the sum of the energy consumption of these branches in year t and the sum of the implied energy consumption from each underlying industrial branches in year t (based on the unit consumption of the sub-sector with a moving reference year). The 10 branches considered in the calculation are: chemical, steel, non ferrous, cement, other non metallic, paper, food, machinery, transport equipment and textile. For steel, cement and paper, energy savings are calculated using specific consumption per tonne produced; for the other branches, the indicator used is the ratio on energy consumption related to production index.

    The variation of the weighted index of the unit consumption between t-1 and t is defined as follows:

    It -1/It = SUMi ECi,t *(UCi,t/UCi.t-1)

    with : energy share EC i  (consumption of each branch i   in total industry consumption);

    unit consumption index UC i (ratio : consumption related to production index or ratio : consumption related to physical production of steel, cement  and paper)

    t refers the current year, t-1 to the previous year

    The value at year t can be derived from the value at the previous year by reversing the calculation: 

    It /It -1= 1/( It -1/It)

    ODEX is set at 100 for a reference year and successive values are then derived for each year t by the value of ODEX at year t-1 multiplied by It /It -1

    CO2 emissions from energy uses split between direct emissions and indirect emissions:

    • Direct emissions refer to emissions from the combustion of coal, gas and oil products (source: EEA inventories 2009)
    • Indirect emissions (or electricity related) refer to emissions in the power sector corresponding to the electricity consumption in the sector

    Indirect CO2 = E ind/E tot * CO2 ie

    with E : electricity consumption (ind for industry, tot for all sectors) (source ODYSSEE database);

    CO2 ie : CO2 emissions from public electricity and heat production ( source EEA, inventories 2009)

    • CO2 emissions from energy uses split between direct emissions and indirect emissions: Direct emissions refer to emissions from the combustion of coal, gas and oil products (source: EEA inventories 2009); Indirect emissions (or electricity related) refer to emissions in the power sector corresponding to the electricity consumption in the sector
            Indirect CO2 = E ind/E tot * CO2 ie
      with E : electricity consumption (ind for industry, tot for all sectors) (source ODYSSEE database);
      CO2 ie : CO2 emissions from public electricity and heat production ( source EEA, inventories 2009)

    Units

    ODEX: #

    Production: kt

    unit consumption: toe/t

    CO2: Mt


     

    Policy context and targets

    Context description

    Policy context is not defined

    Targets

    No targets have been specified

    Related policy documents

    No related policy documents have been specified

     

    Methodology

    Methodology for indicator calculation

    • Specific consumption per tonne produced : Energy consumption divided by the physical production (for steel, cement , paper)
    • Energy efficiency index of industry (ODEX) is a weighted average of the specific consumption index of 10 manufacturing branches; the weight being the share of each branch in the sum of the energy consumption of these branches in year t and the sum of the implied energy consumption from each underlying industrial branches in year t (based on the unit consumption of the sub-sector with a moving reference year). The 10 branches considered in the calculation are: chemical, steel, non ferrous, cement, other non metallic, paper, food, machinery, transport equipment and textile. For steel, cement and paper, energy savings are calculated using specific consumption per tonne produced; for the other branches, the indicator used is the ratio on energy consumption related to production index.

    The variation of the weighted index of the unit consumption between t-1 and t is defined as follows:

    It -1/It = SUMi ECi,t *(UCi,t/UCi.t-1)

    with : energy share EC i  (consumption of each branch i   in total industry consumption); unit consumption index UC i (ratio : consumption related to production index or ratio : consumption related to physical production of steel, cement  and paper) 

    t refers the current year, t-1 to the previous year

    The value at year t can be derived from the value at the previous year by reversing the calculation:It /It -1= 1/( It -1/It)

    ODEX is set at 100 for a reference year and successive values are then derived for each year t by the value of ODEX at year t-1 multiplied by It /It -1

    CO2 emissions from energy uses split between direct emissions and indirect emissions:

    • Direct emissions refer to emissions from the combustion of coal, gas and oil products (source: EEA inventories 2009)
    • Indirect emissions (or electricity related) refer to emissions in the power sector corresponding to the electricity consumption in the sector

    Indirect CO2 = E ind/E tot * CO2 ie

      with E : electricity consumption (indfor industry, tot for all sectors) (source ODYSSEE database);

    CO2 ie : CO2 emissions from public electricity and heat production ( source EEA, inventories 2009)

    Geographical coverage:
    The Eurostat database covers all 27 EU member states plus Iceland, Norway, Switzerland, Croatia and Turkey. Odyssee database covers EU-27 plus Norway and Croatia. Not always data is available for all countries.

    Temporal coverage:
    1990-2007 with a focus on the period 1997/2008 for detailed analysis by country (due to data non available or reliable for new EU countries before 1996)

    Methodology and frequency of data collection:
    Data collected annually in the framework of the ODYSSEE MURE project

    Methodology of data manipulation:
    More information on ODYSSEE available on the website http://www.odyssee-indicators.org

    Change in industry final energy consumption per person: (final energy consumption per country2007 /population per country2007) / (final energy consumption per country1990 /population per country1990) – 1

    Methodology for gap filling

    •  Energy consumption : source Eurostat except for :
      - Wood (NCE 20): source Enerdata / IEA
      - Construction (NCE 45): source Enerdata / IEA
      - Machinery (NCE 28-32) and transport vehicles (NCE 34-35) [in Eurostat energy consumption for these 2 branches are given together]  for ODYSSEE this overall consumption has been split into 2 sub branches according to the disaggregation given in the Enerdata ‘ s database (coherent with IEA)
      - Other branches : in Eurostat this residual branch includes also construction , wood; for ODYSSEE energy consumption of this branch has been recalculated as total industry minus sum of the energy consumption of the branches
    • Energy intensive branches:

    - Cement :
    o physical production: sum of the production of the 27 countries (source Odyssee)
    o energy consumption : based on the energy consumption of 12 countries (10  EU-15 countries: uk, swe, esp, prt, nld, ita, grc, fra, rfa, bel) + Poland and Hungary (source Odyssee), which is extrapolated for EU-27, based on the  share of production these 12 countries in the total production of cement (consumption EU-27= consumption 12* (production EU-27/production 12)).

    - Paper
    o physical production for EU-27 is the sum of EU-27 countries (source Odyssee)
    o energy consumption : source Euro stat

    - Steel :
    o physical production for EU-27 is the sum of EU-27 countries (source IISI)
    o energy  consumption : source Eurostat

    Methodology references

    No methodology references available.

     

    Uncertainties

    Methodology uncertainty

    No uncertainty has been specified

    Data sets uncertainty

    Not all data is available for all countries. Availability for data on years earlier than 2008, is higher.
    Odyssee data is recently updated (October 2010)

    The reliability of total industry energy consumption and related CO2 emissions is reliable due to trustworthy statistics underlying it.

    Rationale uncertainty

    No uncertainty has been specified

    Data sources

    Other info

    DPSIR: State
    Typology: Efficiency indicator (Type C - Are we improving?)
    Indicator codes
    • ENER 025
    EEA Contact Info

    Permalinks

    Geographic coverage

    Temporal coverage

    Dates

    Topics

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