Analyzing Energy Efficiency in Domestic and Foreign Manufacturing Using FEMS

Since the 2015 Paris Agreement, the world is paying increased attention to greenhouse gas emissions, as well as energy efficiency through energy savings. To address social problems facing mankind, such as extreme weather due to climate change and the depletion of energy stocks, it has been proposed that humans must reduce their dependence on fossil fuels and cut carbon dioxide emissions through energy consumption reductions and efficiency improvements. Efforts have been made to reduce energy consumption and improve efficiency since the late 1990s, but the development of generalized technologies and devices to such ends has been rather limited. However, technological convergence using information and communication technologies, cloud computing and other technologies of the 4th industrial revolution provide an opportunity to utilize technologies and devices for energy savings and efficiency improvements that are superior in economic value. Energy Management System (EMS), Demand Management (DM), and Energy Storage System (ESS) are three such technologies. Korea is a major energy importer, depending on foreign sources for 97 percent of its energy, and a country in which industry is highly concentrated around manufacturing. In Korea, energy consumption in the manufacturing sector accounts for 62.5 percent of total energy consumption and more than 54 percent of production power consumed. Nevertheless, as shown in Figure 1, energy consumption levels indicating Korea’s degree of energy intensity as of 2014 were at 0.16 toe/USD, which was a lower figured than in Germany (0.09), Japan (0.10) and the United States (0.14). This study first examines the energy efficiency and energy management policies of major countries and describes the definition and function of the Factory Energy Management System (FEMS). Next, I will investigate energy savings rates through practical domestic and overseas case studies. Based on this, I derive directions and policy implications to enhance the energy efficiency of the manufacturing industry in Korea.