Pre-Bid Conference on BASELINE ENERGY AUDIT under Perform, Achieve

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Pre-Bid Conference on BASELINE ENERGY
AUDITunderPerform, Achieve Trade (PAT) Scheme

• S P Garnaik
• Energy Economist
• Bureau of Energy Efficiency, Ministry of Power,
  GOI

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NATIONAL MISSION ON ENHANCED ENERGY EFFICIENCY
(NMEEE)

• The National Action Plan on Climate Change was
  released by Honorable Prime Minister of India in
  June 2008
• The Action Plan Outlines 8 Missions including
  National Mission on Enhanced Energy Efficiency
  (NMEEE)
• The Mission has outlined specific goals

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Chronology of Events of NMEEE

• 30th June 2008 Honable PM releases the
  National Action Plan of Climate Change
• September 2008 NMEEE endorsed by steering
  Committee, MoP
• 3rd October 2008 Discussion on Draft outline in
  PMO
• 14th Nov 2008 First consultation workshop at
  Mumbai
• 24th August 2009 PMs council on Climate Change
  approves NMEEE in principle
• 1st December 2009 EFC recommends the
  implementation plan of NMEEE to Cabinet with a
  financial outlay of Rs. 235.35 crores
• May 2010 Cabinet approves the financial outlay
• Ammendment to EC Act, 2001 passed in parliament

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NMEEE Four New Initiatives
NMEEE
PAT
MTEE
EEFP
FEEED

• Energy Intensive Industries
• Targets for Mandatory Energy Saving

Energy Efficient Appliances BLY SEEP DSM
Stimulate Funding for ESCOs
Fiscal Instrument for EE PRGF VCF Public
Procurement
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PAT Scheme Background Scope (1)

• Covers 685 designated consumers in 9 sectors
• All DCs consume about 240 mtoe energy i.e. about
  60 of total energy consumption of the country
• Targets would be given to all DCs to achieve the
  same within a time frame
• Achievement gt Target
  E-Scerts
• Achievement lt Target
  Purchase E-Scerts / Penalty
• National Target 10 mtoe at the end of 1st
  PAT Cycle ( April 2011 March 2014)

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PAT Scheme Background Scope (2)

• Large band-with in Specific Energy Consumption
  (As per the BEE sectoral Study)
• Energy Usage Pattern is varying extremely due to
  various diversities
• Hence, the targets would be Plant Specific

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PAT Legal Framework

• Furnish report of energy consumption to the
  Designated Authority of the State as well as to
  BEE (section 14(k)).
• Designate or appoint an Energy Manager who will
  be in-charge of submission of annual energy
  consumption returns of the Designated Agencies
  and BEE (section 14 (l)).
• Comply with the energy conservation norms and
  standards prescribed under section 14 (g) of the
  Act.
• Purchase Energy Saving Certificates (ESCerts) for
  compliance to section 14 (g) in the event of
  default. The Act has been amended with the
  addition of new sub-section 14A to enable this
  and section 14A(2) allows such trading. EScerts
  are defined by adding a new sub-section 2(ma).
• Monitoring and Verification of compliance by
  Designated Energy Auditors (DENA) which will be
  prescribed the Government/ BEE under section
  14A/13 (p) of the Act.
• Excess achievement of the target set would entail
  issuance of ESCerts under section 14A(1).
• Penalty for non-compliance being Rs. 10 lakhs and
  the value of non-compliance measured in terms of
  the market value of tones of oil equivalent by
  inserting a new section 26(1A).
• BEE to be the overall regulator and dispute
  resolution agency and Energy Efficiency Service
  Ltd. (EESL) to be the process manager.

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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Verification of Data Submitted by DCs
• Production
• All Energy Sources
• Carefully investigate the source of data
  as the same source will be used during final
  verification

Item Data Unit Source of Data
Production - MU / MT Document
Purchased Elc. - MU Document
All Energy Source - - Document
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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Define the Plant Boundary (Gate-to-Gate Concept)
• Physical Boundary
• Process Boundary
• Investigate the exclusions like colony power,
  construction related, internal transportation
  etc. with the submitted data
• The plant boundary needs to be discussed with
  Plant Management

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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Develop Process Flow Diagram
• Define sub-processes (Block Diagrams)
• Put operating parameters like Temp / Pressure /
  Flow / mass etc. in the process flow diagram with
  designed value
• Develop the energy balance diagram of each
  sub-process

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(No Transcript)
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Sub-System Name
SS1 Rectiformer
SS2 Potline
SS3 GAP
SS4 Bake Oven
SS5 Rodding Shop
SS6 FTP
SS7 Cast House
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Each Sub-System to be Studied for

• Brief description of the sub-system
• Material Input Output
• Energy (Elect./Thermal) Input Output
• Technical Parameters for Energy Efficiency
• Listing of major static and rotating equipments
• Technology up-gradation since past years
• SEC

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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Find out major energy consuming equipments in
  each sub-system
• Investigate the technology
• List out critical parameters which affect the
  efficiency and energy consumption
• Operating vs. Designed value
• Measurements may be required at this
  stage. However, past energy audit reports,
  performance assessment reports may be referred to
  

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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Example Pot-line of an Aluminium Smelter

Technology Pre-Bake Parameters Pot
capacity Pot voltage Current Density ACD Anode
Effect Factor
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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Investigate All options related to
• Waste Heat Recovery
• Co-Generation
• Fuel Switch
• Use of EE equipment / System
• Detail discussion with management required at
  this stage

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BASELINE ENERGY AUDIT(Methodology of Scope of
Work)

• Review the Past Energy efficiency Measures
• Review the Future Energy Efficiency
  Approach/Strategy
• Detail discussion with plant management required
• Preparation of Audit Report
• Potential evaluation with tentative cost-benefit
  analysis

Technology Sub-System Category Energy Saving Monetary Saving Investment
TU PM OM Others
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• Thanks .
• For further information Please Contact
• S.P.Garnaik
• Energy Economist
• Bureau of Energy Efficiency
• Ministry of Power, GOI
• 4th Floor, Sewa Bhawan, R.K.Puram
• NEW DELHI 110066
• Ph. 011-26179699 Fax [phone]
• Email sgarnaik_at_beenet.in

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Missions under NAPCC

• National Solar Mission
• National Mission for Enhanced Energy Efficiency
• National Mission on Sustainable Habitat
• National Water Mission
• National Mission for Sustaining the Himalayan
  Ecosystem
• National Mission for a Green India
• National Mission for Sustainable Agriculture
• National Mission for Strategic Knowledge for
  Climate Change

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Mission Goals

• Market-based approaches to unlock energy
  efficiency opportunities, estimated to be about
  Rs. 74,000 Crores
• By 2014-15
• 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

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The PAT Scheme

• The market based mechanism to enhance the cost
  effectiveness in improving the Energy Efficiency
  in Energy Intensive industries through
  certification of energy saving which can be traded

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Market Transformation for Energy Efficiency (MTEE)

• Accelerating the shift to energy efficient
  appliances in designated sectors through
  innovative measures to make the products more
  affordable.

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Energy Efficiency Financing Platform (EEFP)

• Creation of mechanisms that would help finance
  demand side management programmes in all sectors
  by capturing future energy savings.

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Framework for Energy Efficient Economic
Development (FEEED)

• Developing fiscal instruments to promote energy
  efficiency

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List of DCs
Industry Sector Annual Energy Consumption Norm to be DC (mtoe) No. of Identified DCs
Aluminum 7500 11
Cement 30000 92
Chlor-Alkali 12000 23
Fertilizer 30000 22
Pulp Paper 30000 70
Power 30000 154
Iron Steel 30000 110
Textiles 3000 197
Railways 30000 8
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State-wise DCs (2009-10)
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Estimated Energy Consumption in DCs
Sector MTOE
Power (Thermal) 160.3
Integrated Steel 26.98
Cement 14.47
Fertilizer 11.95
Sponge Iron 9.1
Textile 3.5
Aluminium 2.42
Paper 1.38
Chlor-Alkali 0.43
TOTAL 230.53
About 55 of DCs Contribute 96 of Total
Consumption
About 45 of DCs contribute rest 4 of Total
Consumption
Railways 9.8 MTOE additional
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Target in PAT
Target is defined as the reduction of Specific
Energy Consumption (SEC) from Baseline value.
SEC
Baseline SEC
Reduction in SEC
Target SEC
Expressed in
Y1
Y2
Y3
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Sectoral studies by BEE on Setting Up of
Sectoral Bandwidth for DCs have revealed the
impact on SEC due to above diversities
Sector Range of SEC
Power plant 2300 3400 kcal / kwh
Fertilizer 5.86 9.11 Gcal/T of Urea
Cement 665 900 Kcal/Kg of Clinker (Thermal) 66 127 KWH/ T (Elect)
Integrated Steel 6.15 8.18 Gcal / tcs
Sponge Iron 4.4 7.6 Gcal / T (Thermal) 72 135 KWH/T (Elect)
Aluminium (Smelter) Aluminium (Refinery) 15875 17083 KWH/T 3.28 4.12 MKcal / T of Alumina
Pulp Paper 25.3 121 GJ/T
Textile 3000 16100 Kcal/kg (Thermal) 0.25 10 KWH/Kg (Elect)
Chlor-Alkali 2300 2600 kwh/ T of caustic soda
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Reasons for Large Energy Usage Bandwidth

• The energy usage pattern varies widely in
  industries of a particular sector due to various
  diversities like
• Scale of Production (Installed Capacities)
• - Use of Raw Material
• - Process Technology
• - Vintage
• - O M Practices
• - Type of Product Output etc.

Factors of Diversity Most Affected Sectors
Raw Material Input Pulp Paper, Fertilizer, Power Plant, Textile
Quality of Raw Material / Fuel All sectors
Process Technology Aluminium, Iron steel, Chlor-Alkali, Paper
Final Product output Textile, Iron Steel, Aluminium
Vintage All Sectors
Capacity Utililization All sectors
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Approach for Setting Targets Depends upon the
Objective of the Scheme

• Total Saving Objective 10 mMTOE
• Setting Sector Targets based on available saving
  potential of Industries and Program Objectives

SN Sector Energy Consumption Share of Consumption Apportioned Energy reduction No. of identified DCs
    (mMTOE) () (mMTOE)  
1 Power (Thermal) 160.30 66.64 6.66 154
2 Iron Steel 36.08 15.00 1.50 110
3 Cement 14.47 6.02 0.60 92
4 Fertilizers 11.95 4.97 0.50 22
5 Railways (Approximated) 9.00 3.74 0.37 8
6 Textile (Approximated) 4.50 1.87 0.19 197
7 Aluminium 2.42 1.01 0.10 11
8 Paper pulp 1.38 0.57 0.06 70
9 Chlor-Alkali 0.43 0.18 0.02 23
Total   240.53 100.00 10.00 687
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Example Baseline Estimation
Name of Unit ABC Ltd. ABC Ltd. ABC Ltd. ABC Ltd. ABC Ltd. ABC Ltd.
Place XYZ XYZ XYZ XYZ XYZ XYZ
Total Installed Capacity 1600000 TPD Sector Cement    

Particulars Unit 2005-06 2006-07 2007-08 2008-09 2009-10
Installed Capacity Tonnes 1200000.00 1200000.00 1600000.00 1600000.00 1600000.00
Actual Production (Cement) Tonnes 995000 1146699 1319800 1325000 1199000
Capacity Utilization 82.92 95.56 82.49 82.81 74.94
Average in last 3 yreas     80.08 80.08 80.08
Deviation from Average in last 3 yras     3.01 3.41 6.42
 
Total Energy Input Million Kcal 919757.4 985287.9 989421.4 1062985.0 977621.3
 
Total Energy Consumption MTOE 91976 98529 98942 106299 97762
Gate-to-Gate SEC w.r.t. cement Kcal/kg 924 859 750 802 815
Base Year   2009-10
Average Capacity Utilization 80.08
Base line SEC (Gate-to-Gate) kCal/kg 789
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Example Target Setting (1)
Plant Name Production (in Tonnes) Production (in Tonnes) Production (in Tonnes) Production (in Tonnes) Estimated SEC (in MTOE/ ton) Estimated SEC (in MTOE/ ton) Estimated SEC (in MTOE/ ton) Estimated SEC (in MTOE/ ton) Relative SEC Total Energy consumption (in MTOE) Target To be Energy Saving
Plant Name 2005-06 2006-07 2007-08 Average production (MT) 2005-06 2006-07 2007-08 Average SEC Relative SEC Total Energy consumption (in MTOE) Target To be Energy Saving
Plant1 3,62,793 3,68,867 3,78,157 3,69,939 1.275 1.272 1.277 1.274 1.000 4,71,455 X 4714.55x
Plant2 3,58,954 3,58,734 3,59,213 3,58,967 1.364 1.365 1.362 1.364 1.070 4,89,546 1.07X 5238.14x
Plant3 76,867 2,07,741 2,50,981 1,78,530 1.569 1.355 1.276 1.400 1.098 2,49,920 1.10X 2749.12x
Plant4 66,347 73,008 99,406 79,587 1.425 1.452 1.408 1.428 1.121 1,13,679 1.12X 1273.2x
Plant5  NA NA  37,635 37,635 NA NA 1.780 1.780 1.397 66,995 1.40X 937.93x
Total                   13,91,594    14912.9X
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Example Target Setting (2)
Total Saving 14912.94x MTOE
Target Saving 62000 MTOE
X 4.15
Plant Name Baseline SEC Target () To be SEC To be MTOE
Plan1 1.274 4.15 1.22 4,51,889
Plan2 1.364 4.44 1.30 4,67,806
Plant3 1.400 4.56 1.34 2,38,527
Plant4 1.428 4.65 1.36 1,08,391
Plant5 1.780 5.80 1.68 63,111
Total energy consumption at the end of 3 years (in MTOE) Total energy consumption at the end of 3 years (in MTOE) Total energy consumption at the end of 3 years (in MTOE) Total energy consumption at the end of 3 years (in MTOE) 13,29,725
Total present energy consumption (in MTOE) Total present energy consumption (in MTOE) Total present energy consumption (in MTOE) Total present energy consumption (in MTOE) 13,91,594
Energy saving during the period Energy saving during the period Energy saving during the period Energy saving during the period 61,870
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Number of Clusters depend upon the Bandwidth of
Baseline SEC
Cluster 2
Cluster 1
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THE PAT SCHEME .. Approach
INDUSTRY (DC)
Review of Present Energy Scenario Bandwidth
(Completed)
Development of Baseline Formats with System
Boundaries Data Collection, Compilation
Analysis Verification of Data
Establish Baseline
Set Targets for SEC Reduction
Technology Transfer, EE Technology, RM,
RD Verification Protocol
Achieve the Target
Trade the higher achieved saving through E-Certs
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Activity Flow Sheet
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Target Setting for Power Station
Variation in Net Station Heat Rate from Design Net Heat Rate Reduction Target for deviation in the Net Station Heat Rate Reduction Target in Net Station Heat Rate
Upto 5 10 0.5
More than 5 and upto 10 15 0.75 to 1.5
More than 10 and upto 20 20 2.0 to 4.0
More than 20 25 5 and above
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Legal Framework

• Furnish report of energy consumption to the
  Designated Authority of the State as well as to
  BEE (section 14(k)).
• Designate or appoint an Energy Manager who will
  be in-charge of submission of annual energy
  consumption returns of the Designated Agencies
  and BEE (section 14 (l)).
• Comply with the energy conservation norms and
  standards prescribed under section 14 (g) of the
  Act.
• Purchase Energy Saving Certificates (ESCerts) for
  compliance to section 14 (g) in the event of
  default. The Act has been amended with the
  addition of new sub-section 14A to enable this
  and section 14A(2) allows such trading. EScerts
  are defined by adding a new sub-section 2(ma).
• Monitoring and Verification of compliance by
  Designated Energy Auditors (DENA) which will be
  prescribed the Government/ BEE under section
  14A/13 (p) of the Act.
• Excess achievement of the target set would entail
  issuance of ESCerts under section 14A(1).
• Penalty for non-compliance being Rs. 10 lakhs and
  the value of non-compliance measured in terms of
  the market value of tones of oil equivalent by
  inserting a new section 26(1A).
• BEE to be the overall regulator and dispute
  resolution agency and Energy Efficiency Service
  Ltd. (EESL) to be the process manager.