Energy efficiency improving opportunities in a large Chinese shoe-making enterprise
Energy consumption and energy intensity reduction opportunities are quite different from one enterprise to another. It is necessary to understand how much energy is used at individual enterprise, where the most energy is consumed and what the best opportunities are to invest in energy efficiency. Auditing energy efficiency was recently undertaken in one of the top 1000 largest Chinese enterprises. The objectives of this paper are to fill a gap in the literature of auditing energy efficiency for a Chinese manufacturing enterprise and to share the audited energy efficiency results. This paper concludes that if the enterprise invests USD 1.9 million to improve energy efficiency, the investment will be recovered in about 18 months. The net present value of the investment would be about USD 9.8 million at a discount rate of 12%. The investment will reduce a large amount of energy consumption at the enterprise based on its figures in 2008, including 15% of electricity, 40% of fuel oil, and 54% of diesel. Carbon reduction is also very cost-effective. Investment of one dollar in the enterprise will help cut carbon emission by 7.95Â kg per year and generate $5.3 net revenue in the economic lifetime of the invested technology.
