P. KUMARP. KUMAR

MECHANICAL ENGINEERMECHANICAL ENGINEER

Energy Conservation

• The strategy developed to make power available to all by 2012 includes promotion of energy efficiency and its conservation in the country, which is found to be the least cost option to augment the gap between demand and supply. Nearly 25,000 MW of capacity creation through energy efficiency in the electricity sector alone has been estimated in India. Energy conservation potential for the economy as a whole has been assessed as 23% with maximum potential in industrial and agricultural sectors.

THE FOUR STEPSof Effective Energy Management

How effectively are we managing our energy costs

today?

It’s time for a candid review. …

Are we selecting our activities rationally, or by whim? …

Are our economic criteria realistic, or wishful thinking? …

Are we paying enough attention to risk? …

Are we keeping our activities profitable? …

Let’s see …

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“ENERGY MANAGEMENT”MEANS LOWERING COST BY:

• ELIMINATING UNNECESSARY ENERGY USE

• IMPROVING THE EFFICIENCY OF NEEDED ENERGY USE

• BUYING ENERGY AT LOWER NET PRICES

• ADJUSTING OPERATIONS TO ALLOW PURCHASING ENERGY AT LOWER PRICES

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THE FOUR STEPS

(1) Identify ALL your opportunities.

(2) Prioritize your actions rationally.

(3) Accomplish your activities successfully.

(4) Maintain your activities.

Note that, …

the steps of effective energy management are the SAME as for the management of all productive

functions.

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STEP 1Identify ALL Your Opportunities

• Before you take ANY action, find ALL your opportunities.

• The big difference of energy management is that the number of options to consider is much larger than for other important functions.

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STEP 1Identify ALL Your Opportunities

• The biggest hazard to energy management is the itch to do things before knowing all the options.

• Finding your best cost saving opportunities is like an Easter egg hunt. You don’t know which eggs have the biggest prizes until you find them all.

It is your responsibility as an energy manager to avoid spending your organization’s

money until you are certain where it can be spent most effectively.

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A Competent Energy Manager:

• Does not wait passively for proposals.

• Aggressively finds every opportunity within the facility for lowering energy cost.

• Relentlessly educates himself about every method of lowering energy cost that could apply to his facility.

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STEP 1Identify ALL Your Opportunities

• Unlike most other business activities, you need a formal process, usually called an “energy audit”, to find all your opportunities.

• A good “energy audit” takes time and costs money, but not much of either, compared to your overall program.

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STEP 1Identify ALL Your Opportunities

• Even today, competent energy audits are rare.

• This is the greatest deficiency of present energy management, resulting in continued high energy costs, waste of money on ineffective action, and inadequate respect for energy managers.

The energy audit is the foundation on which your entire energy management program rests.

A deficient energy audit WILL cause a deficient

energy management program.

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STEP 1Identify ALL Your Opportunities

• The energy auditor requires scientific and engineering education, broad practical experience, and solid judgement.

• The energy auditor needs a thorough understanding of ALL opportunities, not just a few.

Vendors can’t do energy audits!

The energy auditor should have NO CONFLICTING INTERESTS.

Umm, …

Who did YOUR energy audit?

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STEP 2Prioritize Your Activities Rationally

• The sequence of your activities is a major factor in the economic benefit of your energy management program.

• Consider all the criteria that matter, not just the economic criteria.

• Calculate with realistic numbers.

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STEP 2Prioritize Your Activities Rationally

• Limit consideration to measures of proven reliability.

• Consider the ability of your staff to accomplish and maintain each measure.

The best cost saving measures usually are boring, i.e.: ordinary and

inexpensive. The staff understand them easily.

The worst measures usually are ego gratifying, i.e.: “innovative”, complex,

and expensive. The fact that you don’t really understand them is part of the

thrill.

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STEP 2Prioritize Your Activities Rationally

• Cost, by itself, is almost never a significant selection factor.

• Because, IF the measure works as expected, it provides a higher rate of return than most other investments.

• So, you can borrow the money, if necessary.

The largest cost of energy conservation is FAILURE.

If an activity does not work, it will not pay back.

Therefore, …

the most important fiduciary responsibility of the energy

manager is to ELIMINATE FAILURE.

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STEP 3Accomplish Your Activities Properly

• Each cost saving activity is an independent project that requires its own knowledge, equipment, and people.

• The key to success is doing your homework before initiating each activity.

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STEP 4Maintain Your Activities Endlessly

• Almost nothing continues to operate successfully by itself.

• Each energy management activity requires continuing support.

• Integrate the maintenance of each activity seamlessly into your overall operations.

So, …

How does YOUR energy management program compare to the best program that is possible?

Keep tuning your program. There is always room for

improvement.

Energy management NEVER ENDS.

And finally, …

Your program will be a success when the top managers of your

organization understand that energy management produces the highest

profits in the organization.

THE ENERGY CONSERVATION ACT Considering the vast potential of energy

savings and benefits of energy efficiency, the Government of India enacted the Energy Conservation Act, 2001 (52 of 2001). The Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country. Five major provisions of EC Act relate to Designated Consumers, Standard and Labeling of Appliances, Energy Conservation Building Codes, Creation of Institutional Set up (BEE) and Establishment of Energy Conservation Fund.

The Energy Conservation Act became effective from 1st March, 2002 and Bureau of Energy Efficiency (BEE) operationalized from 1st March, 2002. Energy efficiency institutional practices and programs in India are now mainly being guided through various voluntary and mandatory provisions of the Energy Conservation Act.

The Energy Conservation (Amendment) Act, 2010- Main Amendments

• The Central Government may issue the energy savings certificate to the designated consumer whose energy consumption is less than the prescribed norms and standards in accordance with the procedure as may be prescribed.

• The designated consumer whose energy consumption is more than the prescribed norms and standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms and standards.

• The Central Government may, in consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed.

• Commercial buildings which are having a connected load of 100 kW or contract demand of 120 kVA and above come under the purview of ECBC under EC Act.

Energy Efficiency Measures• 1. STANDARDS AND LABELLING PROGRAMME• 2. DEMAND SIDE MANAGEMENT• 3. Energy Conservation Building Code (ECBC)• 4. Bachat Lamp Yojana (BLY)• 5. Strengthening Institutional Capacity of State

Designated Agencies (SDAs)

ISO 50001 — How does it work ?• ISO 50001 is based on the ISO management system

model familiar to more than a million organizations worldwide who implement standards such as ISO 9001 (quality management), ISO 14001 (environmental management), ISO 22000 (food safety), ISO/IEC 27001 (information security).

• In particular, ISO 50001 follows the Plan-Do-Check-Act process for continual improvement of the energy management system.

• These characteristics enable organizations to integrate energy management now with their overall efforts to improve quality, environmental management and other challenges addressed by their management systems.

ISO 50001 — How does it work ?

• ISO 50001 provides a framework of requirements enabling organizations to :

• • Develop a policy for more efficient use of energy• • Fix targets and objectives to meet the policy• • Use data to better understand and make decisions

concerning energy• use and consumption• • Measure the results• • Review the effectiveness of the policy• • Continually improve energy management.

PDCA• This International Standard is based on the Plan-Do-Check-Act

continual improvement framework and incorporates energy management into everyday organizational practices.

• ►►Plan : conduct the energy review and establish the baseline, energy performance

• indicators (EnPIs), objectives, targets and action plans necessary to deliver results in accordance with opportunities to improve energy performance and the organization’s energy policy.

• ►►Do : implement the energy management action plans.• ►►Check : monitor and measure processes and the key

characteristics of its• operations that determine energy performance against the

energy policy and objectives and report the results.• ►►Act : take actions to continually improve energy

performance and the EnMS.

• The industrial units and other establishments, which have participated in this year award scheme of the Ministry of Power, have been collectively able to save 616 MW of equivalent avoided capacity.

• The total annual energy savings of worth Rs. 2,886 crores is achieved by all participating units of National Energy Conservation Award Scheme- 2012.

• In an initiative towards industrial energy efficiency, he informed that Government of India has launched an innovative market based mechanism called “Perform, Achieve and Trade (PAT)” under National Mission on Enhanced Energy Efficiency (NMEEE). This mandatory scheme is expected to save about 6.6 million tonne of oil equivalent in 2014-15 by 8 energy intensive industrial sectors.

NATIONAL ENERGY CONSERVATION DAY

The National Energy Conservation day is celebrated every year on the 14th December. This day goes a long way in spreading the message of energy conservation in the society. On this day, Ministry of Power, with the objective of promoting energy efficiency and conservation, presents the Energy Conservation Awards to industries, buildings, zonal railways, state designated agencies, aviation, manufacturers of BEE star-labeled appliances and municipalities and raise awareness that energy conservation plays a big role in India’s response to reducing global warming. The painting competition is held every year at the School, State and National levels under the National Campaign on Energy Conservation undertaken by the Ministry of Power and Bureau of Energy Efficiency.

Views President of India

• Commenting on the importance of energy efficiency, Shri Pranab Mukherjee said, “It is worthwhile to note that

• policies to promote energy efficiency, along with high energy prices and structural changes in the Indian

• economy towards the services sector have resulted in a sharp decline in energy intensity of the Indian

• economy. The direct contribution of policies to reduce energy use during the five years of the Eleventh Five

• Year Plan period has yielded 10,836 MW of avoided generation capacity.

GOOD NEWSThe participating units of 2012 have collectively invested Rs. 1,948 crore in energy conservation measures, and achieved a monetary savings of Rs. 2,886 crore, implying a payback period of 8 months only, once again proving the fact that energy conservation is a least cost option. The participating units have also saved electrical energy of 4,177 Million kWh which is equivalent to the energy generated from a 616 MW thermal power station at a plant load factor (PLF) of 0.775. In other words, these participating units have avoided the installation of power generating capacity equivalent to 616 MW thermal power stations in 2011-12, which would otherwise have been required to meet the power demand of these units.During the last 14 years of the Award Scheme (1999-2012), the participating units have achieved 3,581 MW of avoided generation capacity and saved Rs. 18,675 crores. The investment made on energy efficiency projects were recovered within 18 months only. In energy terms, 22,133 Million kWh of electrical power, 33.65 lakh kilolitre of oil, 149.53 lakh metric tonne of coal and 22.8 billion cubic metre of gas was saved through energy conservation measures of participating units.

Indian Initiative in EM• NTPC Energy Technology Research Alliance (NETRA)

housed in NTPC’s first Energy Conservation Building Code (ECBC) compliant building was inaugurated by Union Minister of Power Shri Sushilkumar Shinde. A one MW solar power plant shall also be set up in NETRA building soon.

• Speaking on the occasion Shri R.S.Sharma, CMD NTPC informed that the NETRA building is the first NTPC building engineered as per requirements of ECBC 2007. He said that in all upcoming projects of NTPC administrative and service buildings shall be designed as energy efficient green buildings.

Reference :

Energy Efficiency Initiatives in India

Sanjay SethEnergy Economist

Bureau of Energy EfficiencyMinistry of Power

Government of India

India's annual per capita energy consumption of 0.65 tonnes of oil-equivalent, and electricity consumption of 660 kWh are less than one seventh of that in developed countries. This has a considerable impact on development, since there is a strong linear relation between the Human Development Index, poverty and electricity consumption. Access to sustainable energy in rural areas can therefore contribute to poverty reduction. However, more than 280 million Indians, most of whom live in rural areas, have no access to electricity. The Indo-German Energy Programme, implemented jointly by GIZ and KfW Entwcklungsbank in cooperation with their Indian partners, addresses this deficit by supporting energy-efficiency and renewable energy generation in rural areas.

The main focus of the programme is its support for the implementation of the Energy Conservation Act, which aims to promote energy efficiency in the country. The Act involves positive interventions in many different areas, such as energy-intensive industries, the manufacture of household appliances and industrial equipment, residential households, and consulting enterprises and power stations.

In 2010 the programme was expanded to include a renewable energy component, which is collaboration between GIZ and the Indian Ministry of New and Renewable Energy (MNRE) to promote renewable energy in rural areas. Rural India holds great, but largely untapped potential for renewable energy generation.

International Cooperation in India

Indo-German Energy Programme (IGEN)• Commissioned by: German Federal Ministry for

Economic Cooperation and Development (BMZ)• Country: India• Lead executing agency: Bureau of Energy Efficiency

(BEE), Central Electricity Authority (CEA), Ministry of Power (MoP), Ministry of New and Renewable Energy (MNRE), Government of India

Objective:-• The use of energy efficiency measures and renewable

energy sources is increasing, and this is leading to the• more sustainable management of energy and

contributing to climate protection.

Approach• Labelling of household appliances and energy-intensive industrial

equipment with respect to energy efficiency• Certification of energy managers and energy auditors• Setting norms and standards for energy intensive industries• Transferring and promoting cutting-edge technology to reduce energy

consumption• Promoting public-private partnerships to raise awareness of the need to

save energy• Operating one of the largest web portals on this subject in India• Providing technical advisory services for the implementation of rural

electrification schemes• Developing appliances for rural applications, based on renewable energy• Initiating a policy dialogue with MNRE and its state nodal agencies to

promote renewable energy in rural areas• Developing the capacities of, and providing support to public and private

sector institutions for implementing internationally accepted Clean Development Mechanism (CDM) activities

Results of IGEN• The private sector now invests over EUR 400 million annually to implement

energy efficiency measures; to date, annual energy savings worth about EUR 300 million have been reported as a result of these investments.

• About 8,000 professionals have completed the eight examinations to become certified as energy managers and auditors.

• 28 state designated agencies have been formed, as well as seven from the Union Territories, which now receive support for the implementation of the Energy Conservation Act.

• Regulations on energy efficiency labelling on various household appliances and energy-intensive equipment are at an advanced stage of implementation.

• Over 850 CDM projects have been registered in India, including a programme for the introduction of energy saving lamps in households.

• The world's first baseline for calculation of the CO2 emission-factor for the Indian power grid has been prepared and institutionalised

• Mapping and performance verification has been carried out for 85 Indian thermal power plants in the public sector, producing an estimate of potential coal savings of 6.92 million tonnes per year.

Road Map for Success

……it’s not on a sustainable path.it’s not on a sustainable path.

If it’s not energy efficient …If it’s not energy efficient …