Industrial Energy Efficiency -
Approaches, Technologies
and Policies
Girish Sethi
Senior Director
Industrial Energy Efficiency Division
TERI, New Delhi
ProSPER.Net Young Researchers School, TERI University
4 February 2015
Contents
 Energy use in industrial sector
 Approaches to energy efficiency improvement
 Energy efficient technologies
 Industrial Energy Efficiency Policies
• Primary energy supply increases from 717 (2011/12) mtoe to 1950 mtoe (2031/32); coal followed by oil remain the
two dominant energy sources
• Final energy demand rises from 549 mtoe (2011/12) to 1460 mtoe (2031/32), an increase of about 2.7 times in 20
years
• Industry sector continues to remain the major energy consumer ( 40%- 48%), and the share of transport sector
rises from 16% (2011/12) to 25% ( 2031/32)
Primary Energy Requirement
Final Energy Demand
Source: TERI’s MARKAL ModelResults
India: Energy Use Scenario – Present & Future
0
200
400
600
800
1000
1200
1400
1600
2011/12 2016/17 2021/22 2026/27 2031/32
Mtoe
Industry Transport Residential Commercial Agriculture
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2011/12 2016/17 2021/22 2026/27 2031/32
Mtoe
Coal Oil Natural Gas
Nuclear Hydro Solar
Wind Biomass based Power Waste to Energy
Geothermal Tidal Liquid Biofuel
Traditional Biomass
Indian Industry Sector: Projections
 Energy demand in the sector rises from 221 mtoe ( 2011/12) to 697 mtoe (2031/32), with around
60% share of coal in the RES
 The ESM reflects a saving of 12% (2031/32) and the ESA that of 17% (2031/32) in comparison
to the RES
 The ESA sees a drop in the usage of coal and petroleum fuels with gas being used as a bridge
fuel
Source: TERI’s MARKAL Model Results
0
100
200
300
400
500
600
700
800
RES ESM ESA
2031/32
Mtoe
Biomass
Grid Electrcitiy
Petroleum Products
Natural Gas
Coal
Energy Consumption Patterns –
Industry sector
 Large energy-intensive industries like fertiliser,
cement, pulp and paper, textiles, iron and steel,
aluminum, chlor-alkali
 Many energy intensive small scale industries like
glass, ceramics, forging, foundry, brick
 Parallel existence of newer state-of-the-art plants and
older technologically obsolete plants
 10-25% energy conservation potential depending
upon various factors
Approaches
 Energy audits
 RDD&D on energy efficient technological solutions
 Technology transfer
 Standards and Labeling
 Training and awareness
 Documentation of success stories
Approach - Unit specific studies
 Walk through energy audits
 Comprehensive energy audit
 Assessment of technology
employed and performance
 Identification of energy saving
options with techno-economic
feasibility
 Identification of technology and
services providers
 Capacity building of operators
and supervisors
Performance monitoring of pumps
Water flow
rate
Pump head
Pump motor
input kW
Thermography
Case Study # 1: Energy audit of municipal
water pumping installations in Accra, Ghana
 Energy audits of pump-sets installed in water
pumping installations
 Energy savings of about 18% of electricity bill
identified through adoption of measures like:
 Power factor improvement
 Replacement of inefficient pumps with new
ones
 Retrofitting of pump internals like
impellers, sleeves etc.
 Relaying of header pipe line
 Measures would result in energy saving of $ 0.6
million with an investment of $ 1.2 million
 Simple payback period is below 2 years
Case Study # 2: Energy audit of public
buildings in Uganda
 Large number (50) of public buildings
audited:
 Universities (6),
 Public offices (20) and
 Government hospitals (20)
 Power savings identified 1.750 MW
 Measures categorized into low cost,
medium cost and high cost options
 Total investment required $ 3.15
million
Maldives
Chilled
water out
W
H
R
S
G
Chilled
water in
Flue gas at 400 oC
Steam Inlet at 8 bar
Diesel
engine
Waste heat
recovery system
Steam based vapor
absorption chiller
Note: The vapour absorption chiller is a machine that produces chilled water by using heat such as
steam, hot water, etc. It requires very little electrical energy and uses waste heat as a driving source.
…. Contd.
Case study # 3: Replacing split AC units with
waste heat driven vapour absorption chiller in
Maldives
Implementation highlights:
 Utilization of DG set waste heat
 Using natural refrigerants (H2O and Li-Br), which are non-ozone
depletion substances and have zero GWP
 Replacing the split AC units of 36 TR capacity in staff rooms in one of
the resorts
 Actual investment: US $ 50, 000 (cost of VAM and waste heat recovery
boiler)
 Energy cost saving: US $ 200,000 annually (running cost of split AC
units)
 Payback period: 4 months
Case study # 3: Replacing split AC units with
vapour absorption chiller
Adoption of
energy-efficient
options
Process specific
technologies
Cross-cutting
options
Fuel switch
options
Recycling and use
of secondary
materials
 Iron and Steel
 cement
 Aluminum
 Fertilizer
 Small and medium scale
industries
 Motors
 Transformers
 Lighting
 Compressors
 Air conditioning
 Heat pumps
 Furnaces
 Co-generation
 Natural gas
 Biomass
 Refuse derived fuel
 Others (Resources)
Adoption of Energy Efficient Technologies
RDD&D projects (R&D, demonstration and
dissemination of cleaner technologies
 Identification of sectors and energy intensive processes
 Collaborate with international and domestic experts to develop and
demonstrate technologies as per local needs
 Build capacities of local experts and local service providers to disseminate the
technology
Conventional coal/NG
fired Pot Furnace
Recuperative Natural Gas fired
Pot Furnace
Cleaner technologies – Glass industry
Conventional Cupola Divided Blast Cupola
Cleaner technologies – Foundry sector
 Application
 Preheating of boiler feed water and precooling of process chilled
water
 Dairy, food processing, pharmaceutical, commercial buildings
 Pilot plants installed in Chandigarh (Punjab) and Anand (Gujarat)
 Benefits
 Reduction in fuel consumption in boiler and electricity in chiller
 Energy savings 30-40%
Demonstration of Electric Heat Pump (EHP)
Technology Transfer – Essential Knowledge Flows
Technology
suppliers
Technology
importers
Technology
transferred
Supplier firms’
engineering,
managerial
and other
technological
capabilities
Capital goods,
services & designs
Skills & know-how for
operation &
maintenance
Knowledge &
expertise behind
technology
Accumulation of
technological
capacity
New production
capacity
Flow A
Flow B
Flow C
Standard and Labeling Program in India –
key milestones
2001
• Energy Conservation Act
2006
• Standard and Labeling Program for various appliances
in voluntary phase
2010
• Mandatory labeling for room air conditioners, frost free
refrigerators, distribution transformers and FTL
2012
• Up gradation of minimum energy performance standard
(MEPS) for split air conditioners
2013
• Super Efficient Equipment and Appliance Deployment
Program initiated
Regulatory and institutional structure-
Standard and Labeling program
 Key Nodal Agency – Bureau of Energy Efficiency
 State Designated Agencies at the state level created
for implementation of the Act
 Act has the powers to
– Set minimum energy standards for, and affixing
energy – consumption labels on appliances and
equipment
– Prohibit manufacture or sale or import of
equipment and appliances that do not meet
standards
– Ensure display of energy performance labels on
equipment and appliances
Institutional structure – other important
stakeholders
 BIS – National Standards Body
– Formulation and Implementation of National
Standards
– Production certification, Quality system certification,
EMS certification etc.
 Laboratories accredited by National Accreditation
Board of Laboratories
 Educational institutions
 Manufacturers and manufacturing associations
 Consumer organizations
 Ministries and departments
Products covered under Indian S&L Program
Launched on 18th May
2006 , for 4 products by
BEE
Appliances under mandatory labeling
- Room air conditioners (split and window), Distribution
transformer, TFL and Frost free Refrigerators
Appliances under voluntary labeling
- Room air conditioners (Cassette, Tower), Direct cool
Refrigerators, Induction motors, Agricultural pump set,
ceiling fan, Electric Geysers, Color TV, Washing
machines, Computers ( Notebook/Laptop), Ballast,
Office equipment (Printer, copier, scanner), Gas
stoves, Diesel based pump sets, DG sets
Future Equipment for S & L program
- Vehicles, Boilers, Industrial fans & blowers,
compressors, Commercial freezers, kerosene stoves,
Heat pumps, Uninterrupted power supply (Total – 27
appliances by end of 12th plan)
Source: 12th five year plan report, planning commission of India
Bureau of Energy Efficiency
National Mission on Enhanced Energy
Efficiency
 The National Action Plan on Climate Change was released by Prime Minister
of India in June 2008
 The Action Plan Outlines 8 Missions including National Mission for
Enhanced Energy Efficiency (NMEEE)
 The basic objective of the NMEEE mission is to ensure a sustainable growth
by an approximate mix of 4 E’s, namely-Energy, Efficiency, Equity and
Environment
Fiscal
Instrument
for EE
PRGF
VCF
Public Procurement
Stimulate
Funding
for
ESCOs
Energy Efficient
Appliances
SEEP
DSM
Energy Intensive
Industries
Targets for Mandatory
Energy Saving
NMEEE – Four New Initiatives
PAT EEFP
FEEEDMTEE
NMEEE
Perform Achieve and Trade (PAT)
 The key goal of the PAT scheme under NMEEE, is to mandate
specific energy efficiency improvements.
 These units consume about 165 million ton of oil equivalent
energy, which is 50% of energy used in the Industrial sector in
India
 By the end of the first PAT Phase-1 (2012-15), the energy
savings of 6.686 million ton of oil equivalent /year is expected to
be achieved.
 The energy intensity reduction target mandated for each unit is
dependent on its current efficiency
Elements of PAT
 Incentivization and trading of excess savings
- Energy Saving Certificates ( equivalent to1 toe) issued for savings in
excess of target ;
- Certificates can be traded with other designated consumers who can
utilize them to show compliance
- Certificates can be banked for one more cycle
- Trading platform on the two power exchanges (IEX & PXIL)
 Penalty for Non-Compliance
- Quantum of non compliance is deficiency in meeting target at the end
of the cycle
- Penalty is the energy cost of quantum of non-compliance
- Quantum of non-compliance is provided in verification report and
penalty is adjudicated by the State Electricity Regulatory Commission
- Converted energy cost is Rs 10,154 per toe (2011-12)
shall be periodically updated
Documentation and awareness generation
 Process documentation for policy makers and funding organisations
 Dos and don’ts for industry
 Sharing of best practices through newsletters like SAMEEEKSHA
 Video films on energy efficient technologies and best operating
practices
 Hands-on training programs for operators and supervisors
Thank You
E-mail: girishs@teri.res.in
Web: www.teriin.org

Industrial energy efficiency - approaches, technologies and policies, Girish Sethi, Industrial Energy Efficiency Division, TERI University, India

  • 1.
    Industrial Energy Efficiency- Approaches, Technologies and Policies Girish Sethi Senior Director Industrial Energy Efficiency Division TERI, New Delhi ProSPER.Net Young Researchers School, TERI University 4 February 2015
  • 2.
    Contents  Energy usein industrial sector  Approaches to energy efficiency improvement  Energy efficient technologies  Industrial Energy Efficiency Policies
  • 3.
    • Primary energysupply increases from 717 (2011/12) mtoe to 1950 mtoe (2031/32); coal followed by oil remain the two dominant energy sources • Final energy demand rises from 549 mtoe (2011/12) to 1460 mtoe (2031/32), an increase of about 2.7 times in 20 years • Industry sector continues to remain the major energy consumer ( 40%- 48%), and the share of transport sector rises from 16% (2011/12) to 25% ( 2031/32) Primary Energy Requirement Final Energy Demand Source: TERI’s MARKAL ModelResults India: Energy Use Scenario – Present & Future 0 200 400 600 800 1000 1200 1400 1600 2011/12 2016/17 2021/22 2026/27 2031/32 Mtoe Industry Transport Residential Commercial Agriculture 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2011/12 2016/17 2021/22 2026/27 2031/32 Mtoe Coal Oil Natural Gas Nuclear Hydro Solar Wind Biomass based Power Waste to Energy Geothermal Tidal Liquid Biofuel Traditional Biomass
  • 4.
    Indian Industry Sector:Projections  Energy demand in the sector rises from 221 mtoe ( 2011/12) to 697 mtoe (2031/32), with around 60% share of coal in the RES  The ESM reflects a saving of 12% (2031/32) and the ESA that of 17% (2031/32) in comparison to the RES  The ESA sees a drop in the usage of coal and petroleum fuels with gas being used as a bridge fuel Source: TERI’s MARKAL Model Results 0 100 200 300 400 500 600 700 800 RES ESM ESA 2031/32 Mtoe Biomass Grid Electrcitiy Petroleum Products Natural Gas Coal
  • 5.
    Energy Consumption Patterns– Industry sector  Large energy-intensive industries like fertiliser, cement, pulp and paper, textiles, iron and steel, aluminum, chlor-alkali  Many energy intensive small scale industries like glass, ceramics, forging, foundry, brick  Parallel existence of newer state-of-the-art plants and older technologically obsolete plants  10-25% energy conservation potential depending upon various factors
  • 6.
    Approaches  Energy audits RDD&D on energy efficient technological solutions  Technology transfer  Standards and Labeling  Training and awareness  Documentation of success stories
  • 7.
    Approach - Unitspecific studies  Walk through energy audits  Comprehensive energy audit  Assessment of technology employed and performance  Identification of energy saving options with techno-economic feasibility  Identification of technology and services providers  Capacity building of operators and supervisors
  • 8.
    Performance monitoring ofpumps Water flow rate Pump head Pump motor input kW
  • 9.
  • 10.
    Case Study #1: Energy audit of municipal water pumping installations in Accra, Ghana  Energy audits of pump-sets installed in water pumping installations  Energy savings of about 18% of electricity bill identified through adoption of measures like:  Power factor improvement  Replacement of inefficient pumps with new ones  Retrofitting of pump internals like impellers, sleeves etc.  Relaying of header pipe line  Measures would result in energy saving of $ 0.6 million with an investment of $ 1.2 million  Simple payback period is below 2 years
  • 11.
    Case Study #2: Energy audit of public buildings in Uganda  Large number (50) of public buildings audited:  Universities (6),  Public offices (20) and  Government hospitals (20)  Power savings identified 1.750 MW  Measures categorized into low cost, medium cost and high cost options  Total investment required $ 3.15 million
  • 12.
  • 13.
    Chilled water out W H R S G Chilled water in Fluegas at 400 oC Steam Inlet at 8 bar Diesel engine Waste heat recovery system Steam based vapor absorption chiller Note: The vapour absorption chiller is a machine that produces chilled water by using heat such as steam, hot water, etc. It requires very little electrical energy and uses waste heat as a driving source. …. Contd. Case study # 3: Replacing split AC units with waste heat driven vapour absorption chiller in Maldives
  • 14.
    Implementation highlights:  Utilizationof DG set waste heat  Using natural refrigerants (H2O and Li-Br), which are non-ozone depletion substances and have zero GWP  Replacing the split AC units of 36 TR capacity in staff rooms in one of the resorts  Actual investment: US $ 50, 000 (cost of VAM and waste heat recovery boiler)  Energy cost saving: US $ 200,000 annually (running cost of split AC units)  Payback period: 4 months Case study # 3: Replacing split AC units with vapour absorption chiller
  • 15.
    Adoption of energy-efficient options Process specific technologies Cross-cutting options Fuelswitch options Recycling and use of secondary materials  Iron and Steel  cement  Aluminum  Fertilizer  Small and medium scale industries  Motors  Transformers  Lighting  Compressors  Air conditioning  Heat pumps  Furnaces  Co-generation  Natural gas  Biomass  Refuse derived fuel  Others (Resources) Adoption of Energy Efficient Technologies
  • 16.
    RDD&D projects (R&D,demonstration and dissemination of cleaner technologies  Identification of sectors and energy intensive processes  Collaborate with international and domestic experts to develop and demonstrate technologies as per local needs  Build capacities of local experts and local service providers to disseminate the technology
  • 17.
    Conventional coal/NG fired PotFurnace Recuperative Natural Gas fired Pot Furnace Cleaner technologies – Glass industry
  • 18.
    Conventional Cupola DividedBlast Cupola Cleaner technologies – Foundry sector
  • 19.
     Application  Preheatingof boiler feed water and precooling of process chilled water  Dairy, food processing, pharmaceutical, commercial buildings  Pilot plants installed in Chandigarh (Punjab) and Anand (Gujarat)  Benefits  Reduction in fuel consumption in boiler and electricity in chiller  Energy savings 30-40% Demonstration of Electric Heat Pump (EHP)
  • 20.
    Technology Transfer –Essential Knowledge Flows Technology suppliers Technology importers Technology transferred Supplier firms’ engineering, managerial and other technological capabilities Capital goods, services & designs Skills & know-how for operation & maintenance Knowledge & expertise behind technology Accumulation of technological capacity New production capacity Flow A Flow B Flow C
  • 21.
    Standard and LabelingProgram in India – key milestones 2001 • Energy Conservation Act 2006 • Standard and Labeling Program for various appliances in voluntary phase 2010 • Mandatory labeling for room air conditioners, frost free refrigerators, distribution transformers and FTL 2012 • Up gradation of minimum energy performance standard (MEPS) for split air conditioners 2013 • Super Efficient Equipment and Appliance Deployment Program initiated
  • 22.
    Regulatory and institutionalstructure- Standard and Labeling program  Key Nodal Agency – Bureau of Energy Efficiency  State Designated Agencies at the state level created for implementation of the Act  Act has the powers to – Set minimum energy standards for, and affixing energy – consumption labels on appliances and equipment – Prohibit manufacture or sale or import of equipment and appliances that do not meet standards – Ensure display of energy performance labels on equipment and appliances
  • 23.
    Institutional structure –other important stakeholders  BIS – National Standards Body – Formulation and Implementation of National Standards – Production certification, Quality system certification, EMS certification etc.  Laboratories accredited by National Accreditation Board of Laboratories  Educational institutions  Manufacturers and manufacturing associations  Consumer organizations  Ministries and departments
  • 24.
    Products covered underIndian S&L Program Launched on 18th May 2006 , for 4 products by BEE Appliances under mandatory labeling - Room air conditioners (split and window), Distribution transformer, TFL and Frost free Refrigerators Appliances under voluntary labeling - Room air conditioners (Cassette, Tower), Direct cool Refrigerators, Induction motors, Agricultural pump set, ceiling fan, Electric Geysers, Color TV, Washing machines, Computers ( Notebook/Laptop), Ballast, Office equipment (Printer, copier, scanner), Gas stoves, Diesel based pump sets, DG sets Future Equipment for S & L program - Vehicles, Boilers, Industrial fans & blowers, compressors, Commercial freezers, kerosene stoves, Heat pumps, Uninterrupted power supply (Total – 27 appliances by end of 12th plan) Source: 12th five year plan report, planning commission of India Bureau of Energy Efficiency
  • 25.
    National Mission onEnhanced Energy Efficiency  The National Action Plan on Climate Change was released by Prime Minister of India in June 2008  The Action Plan Outlines 8 Missions including National Mission for Enhanced Energy Efficiency (NMEEE)  The basic objective of the NMEEE mission is to ensure a sustainable growth by an approximate mix of 4 E’s, namely-Energy, Efficiency, Equity and Environment
  • 26.
    Fiscal Instrument for EE PRGF VCF Public Procurement Stimulate Funding for ESCOs EnergyEfficient Appliances SEEP DSM Energy Intensive Industries Targets for Mandatory Energy Saving NMEEE – Four New Initiatives PAT EEFP FEEEDMTEE NMEEE
  • 27.
    Perform Achieve andTrade (PAT)  The key goal of the PAT scheme under NMEEE, is to mandate specific energy efficiency improvements.  These units consume about 165 million ton of oil equivalent energy, which is 50% of energy used in the Industrial sector in India  By the end of the first PAT Phase-1 (2012-15), the energy savings of 6.686 million ton of oil equivalent /year is expected to be achieved.  The energy intensity reduction target mandated for each unit is dependent on its current efficiency
  • 28.
    Elements of PAT Incentivization and trading of excess savings - Energy Saving Certificates ( equivalent to1 toe) issued for savings in excess of target ; - Certificates can be traded with other designated consumers who can utilize them to show compliance - Certificates can be banked for one more cycle - Trading platform on the two power exchanges (IEX & PXIL)  Penalty for Non-Compliance - Quantum of non compliance is deficiency in meeting target at the end of the cycle - Penalty is the energy cost of quantum of non-compliance - Quantum of non-compliance is provided in verification report and penalty is adjudicated by the State Electricity Regulatory Commission - Converted energy cost is Rs 10,154 per toe (2011-12) shall be periodically updated
  • 29.
    Documentation and awarenessgeneration  Process documentation for policy makers and funding organisations  Dos and don’ts for industry  Sharing of best practices through newsletters like SAMEEEKSHA  Video films on energy efficient technologies and best operating practices  Hands-on training programs for operators and supervisors
  • 30.