ENERGY Conservation & Management

An Overview
Contents
 INDIAN ENERGY SCENARIO

 NEED FOR ENERGY CONSERVATION

 ENERGY MANAGEMENT TECHNIQUES

 BEE & ITS PROGRAMS

 CONCEPT OF ESCO
INDIAN ENERGY SCENARIO
Energy Policy Infrastructure
Primary Energy Demand

Source: India Energy Outlook 2015

Installed Capacity

Source: CEA Report

Source: India Energy Outlook 2015
Domestic Energy Balance

In MTOE

Source: India Energy Outlook 2015

Source: India Energy Outlook 2015
RE Growth Trends
RE Targets 2022

Source: PRAYAS
NEED FOR ENERGY CONSERVATION
Development & Energy: Correlation
Source: India Energy Outlook 2015
Source: India Energy Outlook 2015
Per Capita Power Consumption

Source: CEA Report

Energy Security: High Share of Imports

Source: India Energy Outlook 2015

Energy Cost: Significant Share
GHG Contribution: Energy Sector

Source: MOEF&CC
Carbon intensity of GDP

Source: India Energy Outlook 2015

GHG Abatement Options
Energy & Emissions: Interrelation

$ Joules/$ Tons/Joules Tons

GROWTH ECONOMY SOURCE GHG

• GDP • Industry • Coal • CO2
• Transportation • Oil & Gas • CH4
• Residential • Renewables
• Nuclear

Reduce emissions intensity by 35

percent from 2005 by 2030
Energy Conservation: Drivers

 Energy- GDP

 Energy- Security

 Energy- Cost

 Energy- Emissions
ENERGY MANAGEMENT TECHNIQUES
Calorific Values
 1 Ton of Oil Equivalent (ToE) = 10 Million kCal

 Coal :4000 kcal/kg

 LPG :12500 kcal/kg
 Furnace Oil :10000 kcal/kg
 Kerosene :11000 kcal/kg
 Natural gas :9000 kcal/kg
 Biomass :3000 kcal/kg
 Electricity :860 kcal/kWh

 (1 Calorie = 4.187 Joules)

Heat
 Heat gets transferred from higher to a lower temperature through :
 Conduction (Energy transfer in a solid)
 Convection (Energy transfer in a fluid)
 Radiation (Does not need a material to travel through)

 Sensible heat:
 Change of temperature

 Latent heat
 Physical state is changed without a change in temperature

 Specific heat - quantity of heat required to raise the temperature of 1kg of

a substance by 1°C
 Iron – 470 J/kg °C
 Glass – 670 J/kg °C
 Water – 4200 J/ kg °C
Energy Management
 Definition
 The judicious and effective use of energy to maximize profits
(minimize costs) and enhance competitive position

 Goal
 To produce goods and provide services with the least cost,
minimizing waste and reducing the environmental degradation
Energy Efficiency & Conservation
 Energy Efficiency
 Using less energy to provide the same service
 Example
 Using energy-efficient model / rated device
 Replacing Incandescent Bulb with LED

 Energy Conservation
 Reducing or going without a service to save energy
 Example
 Turning-off light
 Switching-off engine
Energy Audit
 Energy Audit attempts to balance total energy inputs with
its use and serves to identify all energy streams in the
systems and quantifies energy usage’s according to its
discrete function.

 Identifies the quality and cost of various energy inputs

 Assess pattern of energy consumption in different cost centers
 Relates energy inputs and production output
 Identifies potential areas of thermal/ electrical energy economy
 Highlights wastage’s in major areas
 Fix energy saving potential targets for individual cost centers
 Implement measures for energy conservation
Energy Audit Report (Highlights)
 Introduction about Plant
 Plant Details (Fuel usage statistics)
 Specific Energy Consumption
 Equipment Efficiency (Boiler/ Furnace/DG /Motor)

 Process Description
 Raw material inputs, quantity & costs
 Flow diagram (Energy & Material balance)

 Energy & Utility Systems

 Electricity, Steam, Water, Compressed air, Chilled water

 Energy Conservation Recommendations

 Categorizing in low/ medium/ high cost options (payback)
Type of Energy Audit- Preliminary
 Preliminary Energy Audit
 uses existing, or easily obtained data

 Steps
 Establish energy consumption in the organization
 Estimate the scope for saving
 Identify the most likely (and the easiest areas for attention
 Identify no-/low-cost improvements/ savings
 Set a 'reference point'
 Identify areas for more detailed study/measurement
Detailed Energy Audit
 A comprehensive audit (investment grade energy audit)
provides a detailed energy project implementation plan
for a facility, since it evaluates all major energy using
systems.

 This type of audit offers the most accurate estimate of

energy savings and cost.

 It considers the interactive effects of all projects, accounts

for the energy use of all major equipment, and includes
detailed energy cost saving calculations and project cost.
Energy Audit Tool: Sankey Diagram
Specific Energy Consumption (SEC)

Product Electricity Fuel Total

Consumption MJ/unit
product

kWH/ unit MJ/ unit Liter (kg) MJ/ unit

product product product

SEC is the energy consumption per unit of production

SEC Concept
Gate-to-Gate concept
Case Study: SEC Computation

Parameters Electricity Fuel Oil

Consumption 20000 units 1.500 T

CV 860 Kcal/ kWh 10000 Kcal/ kg

Energy (kcal) 17.2 Million 15 Million
Total (kcal) 32.2 Million
Production 20 Million units
SEC 1.5 kCal/ unit
Energy Management System
Energy Efficiency Interventions

Area 1 Area 2
Interventions
Energy distribution Energy usage
(Motors) (Furnace)

Level 1 Better maintenance Best operating

Efficient operation of existing plant (rewinding) practices practices in furnace
(good housekeeping measures)
Level 2 Variable speed drive for Improved furnace
Major improvements in the existing electric motor insulation
plant (retrofits and revamps)

Level 3 New energy efficient New energy efficient

New plant or process designs electric motor furnace
AT&C Losses
Power Flow
Technical Loss
Commercial Loss
BEE & ITS PROGRAMS
Energy Conservation Act, 2001
 Objectives
 Promote faster adoption of energy efficiency and conservation
through regulation, participation and cost-effective measures
 Involve States and other stakeholders in the EE initiatives
 Create a sustainable environment for demand of energy
efficient products, technologies and professionals

 Bureau of Energy Efficiency (BEE) set up as nodal agency

to coordinate EE&C
BEE Programmes

 National LED
 Standards & Labeling
 ECBC
 Agriculture DSM
 PAT Scheme
 EEC in MSME
National LED Program
TARGET
• Distribution of 770 million LEDs
• Replacement of 35 million street lights with LEDs
• Roll out in 100 cities in three years

IMPACT
• 35 million LEDs distributed
• 550,000 streetlights retrofitted
• Penetration of LEDs increased from 1% to 15%
• 80% reduction in LED price through aggregation of orders
• Three fold increase in the domestic manufacturing capacity
• Failure rate of less than 0.1%
 DELP – Key Features
• High quality LED bulbs given to domestic consumers at a
concessional rate of Rs.100 as against market price of Rs 400

• 100% upfront investment by EESL and no additional budget

allocation from the Electricity Distribution Companies

• Recovery of investment either through monetization of energy

savings or through easy EMIs from consumer’s electricity bills

• EESL aggregates demand and initiates e-procurement to get

the benefit of price reduction through a competitive bidding
National LED Programmes – Aggregation

Reduction in price by 75% due to aggregation

WWW.EESL.CO.IN| 51
Standards & Labeling Program
 Enforce minimum efficiency standards
 Display of Star - 1 (min) to 5 (max)
 14 appliances covered ACs, Tube lights, Frost Free
Refrigerators,
 Distribution Transformers, Induction Motors,
 Direct Cool Refrigerator, Geysers, Ceiling fans,
 Colour TVs, Agricultural pump sets, LPG stoves,
 Cassette type AC, Laptop and Washing machine,
Energy Conservation Building Code
 Minimum energy standards for commercial buildings
 Buildings with load >100 kW, or, demand >120 kVA
 Define norms of energy requirement per sqm area
 Takes into consideration climatic regions of the area
 Components of the building
 walls, roofs, windows
 Lighting systems ,HVAC, distribution
 Water heating and water pumping systems
 Savings: 1.7 Bus per annum
Star Labeling - Buildings

Warm and Humid

Agricultural DSM

 Provides opportunity in
 reducing the power consumption
 improving efficiencies of ground water extraction
 reducing the subsidy burden of the states
 Prospect of targeting subsidy to the farmer
 50% savings by replacing inefficient pumps
 Overall savings from 20 Mn pumps
 62.1 BU per annum
 Rs 18000 crores per annum
Energy Efficiency in SMEs
 Energy savings potential in SMEs clusters

 Diagnostic studies in 25 SME clusters

 Conducting energy audits in the clusters

 Preparing DPRs from energy audit studies

 Develop cluster specific EE manuals

NMEEE: Initiative under NAPCC
NMEEE: Mission Goals
 Market-based approaches to unlock energy efficiency
opportunities, estimated to be about Rs. 74,000 Crores

Targets
 Annual fuel savings in excess of 23 million toe
 Cumulative avoided electricity capacity addition of 19,000 MW
 CO2 emission mitigation of 98 million tons per year
NMEEE: Activities
 Perform Achieve and Trade (PAT): A market based mechanism
to enhance energy efficiency in energy-intensive large
industries through certification

 Market Transformation for Energy Efficiency (MTEE):

Accelerating the shift to energy efficient appliances in
designated sectors through innovative measures

 Energy Efficiency Financing Platform (EEFP): Creation of

mechanisms to finance DSM programs

 Framework for Energy Efficient Economic Development

(FEEED): Developing fiscal instruments to promote energy
efficiency
Perform Achieve and Trade (PAT)

 Regulatory instrument to reduce SEC in energy intensive

industries, with an associated market based mechanism to
enhance the cost effectiveness through certification of excess
energy saving which can be traded.
PAT: Energy Saving Targets
Energy Savings Achieved

Source: CEA report

PAT Cycle I- Achievements

 Saving of about 8.67 MTOE

 CO2 mitigation - 31 million tonne
PAT Cycle II
 Deepening of PAT
 Inclusion of more units from existing sectors
 89 DCs from (I&S, P&P, Cement, TPP, Chlor-Alkali, Fertilizer and
Aluminum and Textiles)
 Widening of PAT
 Inclusion of more units from new sectors
 New sectors: Refinery, Railways and Electricity DISCOMS (84 new
DCs)
Energy Intensity
 Energy Intensity
 In 2001 - 0.175 kgoe/Rs
 In 2013 - 0.0131 kgoe/Rs

 Electricity demand Projections

 Projections for 2022
 Peak Demand @ 235 GW (17% lower than earlier estimates)
 Energy @ 1,611 BU (15% lower than earlier estimates)
 Projections for 2027
 Peak Demand @ 317 GW (21% lower than earlier estimates)
 Energy @ 2132 BU (21% lower than earlier estimates)
ESCO
Financing Energy Efficiency: Issues
 Funding required to execute EE Projects

 Internal Funding - Issues

 EE being on low priority, difficult to source funds internally

 External Funding - Issues

 Weak credit profile of prospective borrowers
 Lack of collateral to offset risk
 Lack of EE project appraisal capacities in banks
 Lack of standardized protocols for monitoring & verification
 High transaction costs due to small project size
ESCO Services
Energy Service Company (ESCO)
 ESCO is a professional services business providing range of
energy efficient solutions, including
 Design and implementation of energy savings projects
 Energy infrastructure outsourcing and risk management
 Design, install & maintain systems to ensure energy savings

 ESCOs derive profits from the amount of energy saved

 ESCO may include

 design and engineering firms
 construction management firms
 equipment manufacturers and suppliers
 In-house ESCOs in large industrial groups
Project DPR Preparation
Energy Conservation: Measures
THANK YOU