Keywords

10.1 Introduction

Energy analysis is an analytical part of the process of planning energy saving activities and is based on assessing the actual amount of resources consumed, identifying the reasons for deviations from planned values, identifying losses, and determining the potential for reducing energy consumption. This section regulates the procedure for accounting for the most significant objects of resource consumption and the use of this information when forming a balance of energy consumption.

The energy baseline as an important stage of strategic planning of energy consumption is used for comparison with the actual values of energy efficiency indicators in relation to the planned indicators. When compiling the analysis report, the energy baselines established for both significant technological processes for the reporting period and for the calendar year following the reporting period are used (Xu et al., 2022; Bhuiyan et al., 2022; Kou et al., 2022; Ermiş & Güven, 2022). Energy resources that are spent on the technological process and depend on the volume of production will be subject to rationing. Resources that are consumed due to the needs of production support systems and do not have a pronounced dependence on the production process are subject to limitation.

Evaluation of technical measures implemented at the metallurgical enterprise. The main directions of implementation of the strategy for modernization of the plant’s energy infrastructure facilities in the period from 2017 to 2021 were the introduction of measures in the field of consumption of electric and thermal energy, natural gas and water. The total amount of investment for the implementation of the measures amounted to about 300 million rubles, with an average payback period of 4.5 months.

10.2 Literature Review

An integrated analysis of activities in the period from 2017 to 2020 confirms that the main direction of energy saving is the optimization of technological processes in production. At the same time, investment in energy sector modernization projects is carried out on an irregular basis, and preference is given to projects that have a high degree of development (Nie et al., 2020; Denisova et al., 2019; Nyangarika et al., 2019b; Nyangarika et al., 2019a; Huang et al., 2021a; Huang et al., 2021b; Mikhaylov, 2018; Mikhaylov et al., 2019; Conteh et al., 2021; Mikhaylov, 2022a; Sediqi et al., 2022; Khan et al., 2021; Bhuiyan et al., 2022a; Liu et al., 2021a, 2021b; Daniali et al., 2021; Moiseev et al., 2023; An et al., 2022).

Significant reserves of energy saving are associated with the operation of pipe rolling and electric steelmaking shops. When performing energy analysis, the following areas can be distinguished: electricity and gas consumption in ensuring technological processes for the production of pipe billets and pipes. Also, the steam production site with morally and physically obsolete equipment has a huge potential for energy saving (Mikhaylov et al., 2022c; Mikhaylov, 2021a; Varyash et al., 2020; Zhao et al., 2021; An & Mikhaylov, 2020; Alwaelya et al., 2021; Yumashev & Mikhaylov, 2020; Yumashev et al., 2020; Mutalimov et al., 2021; An & Mikhaylov, 2021).

As recommendations aimed at improving the energy efficiency management system, it is proposed to improve the work of the enterprise in terms of motivating personnel and developing processes for informing and promoting energy conservation at all levels of management. To assess the effectiveness of achieving energy saving indicators, it is necessary to create an internal information system for storing and processing energy consumption data (Dayong et al., 2020; Nyangarika et al., 2018; Danish et al., 2020; Danish et al., 2021; An et al., 2021; Uyeh et al., 2021; Tamashiro et al., 2021; Tamashiro et al., 2023; Shaikh et al., 2021).

Another important step in optimizing the energy efficiency management mechanism is the procedure for distributing responsibility between system participants (An et al., 2019a, 2019b; Mikhaylov & Tarakanov, 2020; An et al., 2020b, 2020a; An et al., 2020c; Moiseev et al., 2020; Moiseev et al., 2021; Gura et al., 2022; Dooyum et al., 2020; Mikhaylov et al., 2020; Mikhaylov, 2020a; Mikhaylov, 2020b; Mikhaylov, 2020c).

10.3 Development of an Algorithm for Making Investment Decisions when Implementation of Energy Saving Projects

Based on the theoretical and practical research conducted in the previous chapters, it can be concluded that due to the increasing competition in the metallurgical industry, the key area that has a huge potential for optimization is improving energy efficiency. Moreover, both technological innovations and organizational changes serve as tools for implementing improvements. The importance of improving energy efficiency for metallurgical enterprises is increasing, which in turn leads to a rethinking of energy sector development strategies (Khan et al., 2022; Dinçer et al., 2022b, 2022d; Badr et al., 2022; Barykin et al., 2022a; Mehta et al., 2022; Kalinina et al., 2022; Shaikh et al., 2022; Mikhaylov et al., 2022; Nyangarika et al., 2022; Mikhaylov et al., 2023; Mikhaylov, 2022b).

The specific nature of energy consumption and features of the power system of a metallurgical enterprise determine some difficulties in choosing one or another approach to improving efficiency (Bhuiyan et al., 2021; Dong et al., 2021, Mikhaylov, 2021b; Barykin et al., 2022b; Liu et al., 2022a, 2022b; Bhuiyan et al., 2022b; Danish et al., 2022a, 2022b; Saqib et al., 2021; Mukhametov et al., 2021, Candila et al., 2021; Mikhaylov & Grilli, 2022; Li et al., 2022a, 2022b, 2022c).

The limiting factor in the development of plant energy is the lack of investment in this area due to the significant cost of projects, which leads to the use of strategies aimed at optimizing consumption at the expense of internal resources. In this case, there is a need to activate the activities of personnel in the direction of rational use through the implementation of motivation mechanisms.

Implementation of a comprehensive and systematic energy efficiency improvement strategy will reduce costs and increase the company’s competitiveness in the metallurgical industry.

At the state level, support is provided to enterprises aimed at improving the energy efficiency of production, in order to reduce costs per unit of output, reduce the consumption of traditional fuels and minimize carbon emissions during the operation of energy facilities. The main objective of such measures is to increase the competitiveness of domestic products on the world market and reduce the environmental impact of industrial activities. As part of the regulator’s activities, both incentive and administrative measures can be applied to enterprises to encourage them to work in the field of improving the efficiency of using energy resources.

The main approach is to manage the process of using energy resources, which includes setting norms and limits of consumption and monitoring their use, developing an energy efficiency improvement program that determines the strategic direction of energy saving at all plants of the company, and formulating principles for motivating the company’s personnel. This approach is fundamental, as it provides an initial statement of the problem of energy saving, and directs management to build a unified system. In conditions of a shortage of financing, due to the unstable financial condition of the industry as a whole, this approach is able to ensure the maintenance of competitiveness of a single entity.

A promising direction for the development of the management system is the introduction of an approach to innovation management, since this area has a significant potential hidden in the human resource. The main indicator of efficiency in this area is the number of implemented improvement projects and innovation proposals aimed at reducing energy consumption. In addition, the creation of project teams capable of solving energy saving issues and implementing projects in the conditions of existing production is no less effective (Fang et al., 2021; Kayacık et al., 2022; Eti et al., 2022; Dinçer et al., 2023).

The development of traditional approaches makes it possible to form a systematic view of energy efficiency management, which is a set of organizational and technical measures, including using elements of training and motivation of personnel.

The driving force behind the transition to system work is the need to move away from the implementation of one-time investment projects in the energy infrastructure and create conditions for a continuous process of development and implementation of organizational and technical projects.

It is obvious that the list of business process managers includes energy conservation management processes, investment projects, financial management areas in the energy sector, as well as mechanisms for stimulating personnel to improve energy efficiency (Eti et al., 2023; Li et al. 2022a, 2022b, 2022c; Haiyun et al., 2021; Yuan et al., 2021). These processes are directly related to the main production processes and form the long-term energy efficiency strategy of the enterprise. Supporting business processes are ensuring the operability of equipment, through repairs to the energy infrastructure, supply and logistics, as well as operational control over production and financial flows and the implementation of approved programs in the field of energy conservation.

Given the previously identified problem of lack of investment in energy infrastructure, there is a need to develop recommendations for making a verified decision regarding the investment object (Carayannis et al., 2022; Li et al. 2022a, 2022b, 2022c; Yüksel et al., 2022; Mikhaylov et al., 2022a). First of all, the basis for making any decision is the initial information. Within the framework of the management system implemented at the enterprise, the source of initial information is internal audits. Based on the results of internal surveys, an analysis and development of measures aimed at improving energy efficiency is carried out. After that, the project database is formed with the division of projects into three categories.

The first group includes projects that are understood by most managers, characterized by relatively low capital investments and a low implementation period with a payback period of less than 1 year.

10.4 Conclusion

The next group includes projects that require significant capital investments, but have a fairly short payback period (2–3 years). As a rule, projects in this category involve technological changes in an entire subdivision or site and in some cases may have insufficient justification due to the lack of the necessary information and intellectual base. Further implementation of these projects requires the involvement of a third-party specialized organization in order to conduct an expert comprehensive survey and develop a feasibility study. The proposed step will minimize project risks in the context of the existing lack of knowledge and experience among managers and will provide the necessary support when making an investment decision in the field of energy conservation (Dong et al., 2022; Dinçer et al. 2022a, 2022b, 2022c; Zhang et al., 2022; Yüksel & Dinçer, 2022).

The third group of projects is considered the most difficult to understand, as it concerns global changes in the energy sector and affects the entire energy system. Projects in this category have a long payback period (5–10 years) and require significant capital investment. In addition, they are often characterized by a complete lack of knowledge and experience in their implementation and subsequent operation. It is for the third group of projects that the best option is to attract an organization that will take over risk assessment, calculation of economic indicators and costs for the implementation and operation of the project being implemented.

After classifying all the projects that were proposed based on the results of the energy audit, the fourth stage follows, at which it is necessary to finally form the entire portfolio of energy saving projects, indicate the essence of each of them and determine the technical and economic indicators of the project: the amount of funding, the expected economic effect, payback periods, etc. (Martínez et al., 2022; Sun et al., 2022; Kafka et al., 2022; Mukhtarov et al., 2022). At this stage, depending on the complexity of the project, the manager decides on whether to.

At the final stage, after deciding on the source of project financing, documentary confirmation is made by including it in the investment program or entering into an agreement with the company and moving to the implementation stage. At the implementation stage, control over the cost of financing and the quality of work performed should be established. An important aspect of the final stage is the creation of a database of best practices for implementing energy-efficient techniques, which can then be replicated to other enterprises of the company and the industry as a whole.