Energy efficient technology procurement

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  • 1. ENERGY EFFICIENT TECHNOLOGY PROCUREMENT:SOME GOOD PRACTCES: Once an Energy auditor presents to the management a list of opportunities with potential, cost benefits, vendor information etc, the implementation process begins and while housekeeping, no cost, low cost measures are easy enough to implement without hassles, EET procurement and implementation is often a concern area, especially in several SMEs and traditional units, where in- house techno-managerial skills are found wanting. These concerns include Information overload on one hand and EET vendor push on the other, alongside considerable technical and financial risks. Some proven good practices for management consideration in EET Procurements are as follows: 1. Categorize opportunities and, for prioritized high investment, high technology interventions, opt for a DPR preparation with due sensitivity analysis before implementation. Some projects may involve residual life assessment, renovation and modernization, process line balancing etc. 2. Assign a dedicated and empowered in-house project management team, inter-departmental preferably, and provide for its capacity building on EETs proposed. 3. Just lowest quotation approach in procurements is dangerous and can lead to repentance later. Here follow supportive procurement criteria that managements may insist on, apart from competitive financial bids: • Information on Design/Technical specifications, QA features. (Sometimes sharing proprietary design information may be denied) • EET Compliance with relevant International/local standards • International partners/tie-ups of suppliers • Vendor readiness to include supply, erection, testing and commissioning in scope. • Referrals of vendor clients served in the region/ facilitation of visits to such sites. • Performance guarantees. • Vendor acceptance of third party verification. • Acceptance of Penalty clause in case of non-performance. • Vendor training of plant staff and hand-holding for a few weeks, if not an O&M contract, as needed. • Local/regional presence of EET suppliers for spares, consumables, maintenance services. • On line Instruments provision to facilitate Pre and Post performance monitoring of EETs. Given that EET vendors may not agree to fulfill all these criteria, it is desirable that managements may incorporate selectively, some of these criteria in EET procurement process for technical and financial risk minimization.