Maximum demand management is always overlooked as an energy saving opportunity in industry. Maximum demand charge is part of total electricity charges of an Industrial energy tariff and contributes around 20% of the total electrical energy bill. An energy audit conducted in an Industry revealed an opportunity of reducing the total plant maximum demand of average from 2736 kW to 2220 kW saving up to RM 17,000 on an average/month. The paper briefs the process re-engineering and technologies that could be used in the plant to reduce up to 20% Maximum demand charges from the total electricity bill. This can bring in a significant saving with minimal investment and is sustainable.

Malaysia’s energy intensity (GWh/GDP) shows an increasing trend since the 1990s, leading to the government’s efforts to promote energy efficiency via policies such as the National Energy Efficiency Action Plan (NEEAP), which includes the Energy Performance Contracting (EPC) initiative. This paper reviews recent publications in industrial Combined Heat and Power (CHP) with a focus on international case studies relevant to Malaysian industries that use industrial steam and highlights trends within the research area. It also provides the basis for more case studies to be performed in the Malaysian industry to improve energy efficiency while also supporting further academic research in the area. Additionally, the paper documents the importance of data collection and analysis as well as demand forecasting, not only for a better understanding of industrial energy systems but also to increase profitability since system loads may vary throughout a typical year. A multi-criteria and comprehensive approach is recommended in future case studies to ensure energy efficiency, economic returns and environmental impact are considered to ensure long-term sustainability. A summary of barriers to CHP implementation in the industry is also included to provide a broad understanding of industrial CHP.

This work was done in a process plant, where the steam demand was mostly steady but sometimes it peaks-up to the double of the average demand for a short period of time. The plant, in addition to a 5000kg/hr boiler, was continuously operating a huge capacity boiler to encounter this brief situation. This was resulting in unnecessary energy loss. As a solution, a steam accumulator was added on and only a lower capacity boiler was run. The short time peak demand of the plant was satisfied by supplying extra steam from the accumulator for a short period of time. By doing so a saving of about RM 300,000/year was achieved.