PCRASR

ENERGY SCENERIO/CONSERVATION OPPORTUNITIES SHARING WITH YOU WELCOME TO U ALL V SIVAKUMAR,DIRECTOR/CRC-SR Petroleum Conservation Research Association , (Under Ministry of Petroleum and Natural Gas) PCRA – An integrated Energy Solution Provider

Sanrakshan Bhawan 10, Bhikaji Cama Place, New Delhi - 110066 Tel: 011-26198856, Fax: 011-26109668 http://www.pcra.org WELCOME

CONSERVATION

News Flashes Carbon Capture and Storage Raise Thermal Efficiency of Power Plants Energy Police:: Switch off ACS PCRA – An integrated Energy Solution Provider

Electricity boards switches to Energy Audit Waste becomes energy Jatropha Oppurtinity Bright ideas for energy efficiency News Flashes PCRA – An integrated Energy Solution Provider

CLIMATE CHANGE
CARBON FOOT PRINTS
Clean dev mechanism
CONCERN FOR ENVIRONMENT
CONSERVATION

The carbon cycle
PROBLEM IN SPACE ABOVE EARTH
COMMON TO ALL COUNTRIES

CO2 in Atmosphere 1.7% Soil and peat 3.4 % Calcareous rocks + Fossil fuels 11.3 % Living organisms on land and in sea 2.6% Ocean depths in dead corals And submarine organisms 81.0% Death + decay Volcanic emissions Respiration, decay, Fires + fuel wood Photosynthesis Burning fossil fuels Industrial processes Mining + extraction Fossilisation Via precipitation Diffusion Processes The Earth’s carbon stores

Significant changes to the environment began with human civilization :
The discovery of fire-CO2
The domestication of livestock-CH4
The development of cultivated crops-N20
The building of permanent settlements-TOTAL DAMAGE .
MOTHER EARTH SAVES LIVING BEINGS
HUMAN SAYS HE SAVES THE EARTH
ENVIRONMENTAL CHANGES PCRA – An integrated Energy Solution Provider

CO2 GENERATION
CARBON FOOT PRINTS
PERFORMING GOOGLE TYPICAL SEARCH GENERATES 7 GM OF CO2,
BOILING A KETTLE FOR TEA GENERATES 15 GM CO2.
ONE BOTTLE OF ORANGE JUICE 1.7KG
1 LITRE OF PETROLEUM FUEL 2.2 KG
OBAMA VISIT TO COPENHAGAN
PRESIDENT OBAMA’S ONE DAY VISIT TO COPENHAGEN, TO LAY USA GOAL OF CUTTING GHG GENERATE 3820 TONNES OF CO2.(1+5 AIR CRAFTS;17.4 LAKH LITRES OF ATF;2.2KG PER LITRE OF ATF)

FOR PETROL CAR00.15-0.2 KGCO2/KM
1187 730 1905TONNES PETROL CAR 00.15-0.2KGCO2/KM

Energy Conservation Vs Energy Efficiency Incandescent Lamp 60 W Compact fluorescent Lamp 15 W Energy Efficient Equipment uses less energy for same output and reduces CO 2 emissions CO 2 Emission – 65 g/hr CO 2 Emission – 16 g/hr

Global Warming MEASURE OF WARMING
INTER GOVT PANEL FOR CLIMATE CHANGE

Man-made Greenhouse Effect Source: IPCC
Changes to the natural greenhouse effect are
a result of man-made emissions of
Greenhouse Gases (GHG):
Carbon dioxide- 
Methane
organic matter decomposes
in the absence of oxygen:
wetlands
plantations
landfills
Bio-wastes
Nitrous oxide (N2O)
bacteria transform nitrate from fertilisers
Hydro- & Perfluorocarbons
cooling agents;
contrast-enhanced ultrasound
Sulphurhexafluoride (SF6)
Dielectric medium:SF6
PCRA – An integrated Energy Solution Provider

CLIMATE CHANGE
THE WORLD RESPONDING AS IF IT IS A STAGE I CANCER WHEN ALL THE SCIENCE SAYS THAT IT HAS PROGRESSED CLOSE TO THE END OF STAGE III AND ABOUT TO ENTER THE IV THE FATAL STAGE
STEPHEN HAWKING-A BRIEF HISTORY OF TIME
WE DO NOT KNOW WHERE GLOBAL WARMING, WORST CASE SCENARIO IS THAT EARTH WOULD BECOME LIKE ITS SISTER PLANET,VENUS WITH TEMPERATURE OF 250DEG AND RAINING SULPHURIC ACID.

THE NEED OF THE HOUR CONSERVATION PCRA – An integrated Energy Solution Provider
CONSERVATION IS NOT REDUCING CONSUMPTION
CONSERVATION IS A PURPOSE BEYOND GENERATIONS

ENVIRONMENTAL ISSUES GOVT POLICY CONSERVATION SCARCITY FINANCIAL CONSTRAINT MAJOR ISSUES IN TODAYS DEVELOPMENT EFFICIENCY PCRA – An integrated Energy Solution Provider

AN EXAMPLE
In India for steel manufacture SEC is 6.9Gcal/ton as against 5.67Gcal/ton worldwide.
Improving SEC of this sector in India, major energy saving measures such as given below are being considered.
High capacity boilers,
Phasing out of small capacity inefficient BFs,
Top Pressure recovery turbine,
Phasing out of open hearth furnaces,
Adoption of continuous casting route.
1 g cal=1000000000 cal(10-9)

Average Specific Consumption India Global Aluminum 90 GJ/ton 60-70 GJ/ton Paper 35-50 GJ/ton 20-25 GJ/ton

Share of Energy in the Manufacturing Cost 8 8 7 7 6 6

ENERGY SCENERIO PCRA – An integrated Energy Solution Provider

Gossips! Threats!! Katrina, Rita & Wilma!!! Crude Price Fluctuations $ 1 increase in crude price results in extra burden of >Rs 3000 Cr / annum Current Energy Scenario 130-150 2008 $/bbl 200-fear PCRA – An integrated Energy Solution Provider

> 4,00,000 Expenditure Towards Crude Oil Import 81160

PCRA 70% Of Oil Requirement Depend On Import 450 MT out of 1100 MT of Co2 emission is from POL. India the 5th largest emitter of Co2(USA, China,Russia,and Japan) The Focus Area Is Demand Side Management With $75-80 And With 2% Conservation The Saving Potential Is Rs.8,000 Cr., One Unit Of Energy Saved Is Equivalent To 3 Units Of Energy Source

* Coal
Global Coal reserve : 909 billion tonnes
(6,06,000 MTOE)
US has largest share : 27.1%, 2nd Russia (17.3%)
India :10.2 %
* Oil
Global Oil reserve : 1208 billion bbls
(1,65,000 MMT)
Saudi Arabia has largest share : 22%,
India : 5.7 billion bbls
(800 MMT)
# Gas
Global Gas reserve : 181.46 TCM
(1,62,00 MTOE)
Russia has largest share : 26.3%,
India : 1.1 TCM
(990MTOE)
Source : *BP statistical Review, end 2006 Global Primary Energy Reserves

WORLD OIL DEMAND
85 MILLION BBL PER DAY
100MIL.BBL PER DAY BY 2015
120 MIL.BBL PER DAY BY 2030
GLOBAL DEMAND PCRA – An integrated Energy Solution Provider

INDIA
INDIAN CRUDE OILDEMAND
2.5 MILLION BBL PER DAY
5.3 MILLION BBL PER DAY BY 2025

60% of resources of world consumed so far ENERGY SCENERIO Energy Conservation and its importance

Stocks of Fossil Fuels PCRA – An integrated Energy Solution Provider

The “Fifth Fuel” Energy efficiency is the alternative to coal, oil natural gas, hydropower and nuclear fuel and energy outlook forever.

Nuclear Hydropower Oil/Natural Gas Coal “ Fifth Fuel” Efficiency Energy

Efficiency
Electrical Efficiency - useful power output per electrical power
Thermal Efficiency or Fuel Efficiency - useful heat or work output per input energy
Energy Efficiency – Reducing consumption of energy while achieving same level of economic activity or amenity.

Dream survival without OIL & GAS ? PCRA – An integrated Energy Solution Provider

CYCLE
BULLOCK CART
WALK
ROLLER SKAT
ELECTRIC SCOOTER
TAKING BATH ONCE A WEEK
SIT AT HOME
OPPURTUNITY TO DEPLOY ALL
INNOVATIONS IN RENEWABLES

DREAM TO REALITY
OIL TO GAS
IMPROVEMENTS IN COAL USAGE
TRANSPORT SECTOR
GAS/HYBRID
THEN TO HYDROGEN
INDUSTRIES
FUEL SWITCH
GENERATE POWER PREFERABLY FROM
RENEWABLE SOURCES
ADOPT ONLY EFFICIENT APPLIANCES

10 TH AUG’78 PCAG RECONSTITUTED AS PETROLEUM CONSERVATION RESEARCH ASSOCIATION (PCRA) AND REGISTERED AS A SOCIETY UNDER MOP&NG . PCRA – An integrated Energy Solution Provider EMERGENCE OF PCRA

PCRA INDUSTRY AGRICULTURE TRANSPORT DOMESTIC COMMERCIAL
OIL TO GAS
TO SOLAR/WIND
> GAS > TO CNG/H2 SECTROAL APPROACH

Energy Security for Transport Sector is the corner stone of our Petroleum Strategy Sector-wise Consumption of Petroleum Products PCRA – An integrated Energy Solution Provider Petroleum Product Consumption (MMT) Sector 120 16 05 17 21 61 Total Others Agriculture Industrial Domestic Transport

PCRA ACTIVITIES
DRIVER TRAINING PROGRAM
TRANSPORT WORKSHOPS
FUEL OIL DIAGNOSTIC STUDIES
INSTITUTIONAL/INDUSTRY TRG PROGRAM
SEMINAR/TECH MEET/CONSUMER MEET
YOUTH/DOMESTIC PROGRAMS

ENERGY EFFICIENCY AREAS
PROCESS INDUSTRY
STEAM SYSTEMS
WELDED PLATE EXCHANGERS
FIRED HEATERS
AIR SYSTEM/NETWORK-TAILOR MADE
COOLING WATER/DM WATER/BFW
DRIVES

Energy saving opportunities in electric motor operation
Use of high efficiency motors.
Removal of oversized motors.
Delta to star connection if motor is grossly under loaded.
Use of variable speed drives.

PROBABLE CDM PROJECTS
ON REGIONAL/DIVISION BASIS/COMPANY BASIS
ROTARYEQUIPMENTS(PUMPS/COMPRESSORS)
ENERGY CONSUMPTION/OPTIMISATION
PLANNING FOR VARIABLE SPEED DRIVES
EVALUATION OF PRESENT AIRCONDITIONING SYSTEMS AND GO FOR ENERGY EFFICIENT VERSIONS
LIGHTING OFBUILDING/ RO/INSTALLATION BY SOLAR/WIND
PIPELINE TRANFERS

ENERGY AND THE COST
Energy today has become a key factor
Decides the product cost at micro level
The inflation / the debt at the macro level.
Energy cost is a significant factor in economic
activity
An energy shortage situation calls for
energy conservation ,

Energy Audit attempts to balance the total energy inputs
Serves to identify all the energy streams in the systems
Quantifies energy usage’s
Energy Audit helps in energy cost optimization,
Pollution control, safety aspects
Using improved energy conservation equipment’s. instrumentation’s and technology.
PCRA – An integrated Energy Solution Provider ENERGY AUDIT

Objectives of Energy Audit
The Energy Audit provides the vital information base for overall energy conservation program
Essentially energy utilization analysis and evaluation of energy conservation measures.

Important features of the Energy Conservation Act
BEE was established on 1st March 2002, under the Energy Conservation (EC) Act, 2001.
BEE is responsible for spearheading the energy efficiency in the economy through various regulatory and promotional instruments
Standards and Labeling
Industrial energy benchmarks
Designated Consumers
Certify and accredit energy auditors and energy managers
Energy Conservation Building Codes
Designated consumers : needs to
Appoint/designate energy managers
Get energy audits conducted by accredited energy auditors
Implement techno-economic viable recommendations
Comply with norms of energy consumption fixed
Submit report on steps taken

Polluting gases/elements
LEAD,
Sulfur Gases(SOX)
Nitrogen gases(NOX)
Un-burnt Carbon /HC gases
Particulate matters
Volatile organic compounds
Atmospheric POLLUTION ALREADY ADDRESSED GREEN HOUSE GASES PCRA – An integrated Energy Solution Provider

WHAT IS GHG
GREEN HOUSE GASES ARE :
Carbon Di-Oxide,CO2
Methane ,CH4
Nitrous Oxide, N2O
Hydro Fluoro Carbons, HFC
Per Fluoro Carbons, PFC
Sulpher Hexafluoride SF6
GHG EMISSIONS PCRA – An integrated Energy Solution Provider

Green House Gas (GHG) Global Warming Potential (GWP ) Carbon-di-oxide (CO 2 ) 1 Methane (CH 4 ) 21 Nitrous oxide (N 2 O) 310 Per fluoro carbon (PFCs) 560-9200 Hydro fluoro carbon (HFCs) 140 – 11700 Sulphur hexa fluoride (SF 6 ) Above 10,000 The value of GWP is used to compare the abilities of different greenhouse gases to trap heat in the atmosphere. GWPs are based on the heat-absorbing ability of each gas relative to that of carbon dioxide (CO2), as well as the decay rate of each gas in atmosphere Global Warming Potential (GWP) of Major GHGs

CLIMATE CHANGE AND SUSTAINABILITY 23900 Sulpher Hexafluoride 560 to 9200 Per Fluoro Carbons 140 to 11700 Hydro Fluoro Carbons 310 Nitrus Oxide 21 Methane 1 Carbon Di-Oxide Global warming potential as CO2 equivalent Green House Gases under Kyoto Protocol

CLIMATE CHANGE AND SUSTAINABILITY Thus world today have only two options: either to stop generating GHGs stop development synergize development with environment. concern of economic development at any cost ; PCRA – An integrated Energy Solution Provider

CLIMATE CHANGE AND SUSTAINABILITY Initiatives taken to mitigate/CONTROL the emission, The best known being the Kyoto protocol. Under the aegis of the United Nations Framework Convention on Climate Change. UNFCCC PCRA – An integrated Energy Solution Provider

AIMS & OBJECTIVE
Reduction of Greenhouse Gas (GHG) emissions
Technology up gradation
Accelerated adoption and absorption of environmentally sustainable Energy Efficient (EE) technologies
Removal of key barriers to Energy Efficiency measures in the sector

Kyoto Protocol to the UNFCCC
Signed in 1997; in force since 16 February 2005
Commits industrialised countries to reduce their greenhouse gas emissions by, on average of 5.2% below 1990 levels in 2008-12
Individual, quantified emission targets for each industrialized country
Six greenhouse gases covered: Carbon dioxide, Methane, Nitrous oxide, Sulfur hexafluoride, Hydro-fluoro carbon (HFCs), and Per-fluoro carbons (PFCs)
“ Flexibility mechanisms” for financing emission reductions abroad:
Clean Development Mechanism (CDM)
Joint Implementation (JI)
International Emissions Trading
US have not ratified; EU, China, India, Brazil are Parties (Total 183 Parties )

CDM: How it works Carbon Credits (CERS) Carbon Value (Euro) Emission cap Actual emissions Buyer Seller Non – Annex I Annex I The reduced GHGs in a Non–Annex I countries can be sold to an Annex I country A CDM project reduces the GHG emissions in the CDM country

Emission Quota Emissions Reduction An electric utility in an industrial nation is required to cut its annual carbon by 200,000 tons. The company falls shorts, trimming only 100,000 tons. To Comply with its requirement, the company buys 100,000 tons. “Certified Emission Reductions” on the carbon market. The 100,000 credits sold to the market were earned in a developing nation, where a clean energy project was certified to have reduced emissions by 100,000 tons a year. <200000 TONS 100000 TONS 100000 TONS US/EURO $ AN EXAMPLE

Impact of Carbon Revenue on IRR of the Project IRR Benchmark Project return excluding CDM revenue Project return including CDM revenue CDM cash flow The gap between the project return and the required return on investment threshold 12 % 15 % 16 % The CDM cash flow increases the IRR of the project making it more interesting for investors. Project Not eligible

Project types : Renewable Energy Hydro, Wind, Solar, Biomass, Bagasse, Geothermal, Tidal Waste Heat Recovery Cement, Steel/ Metal, Coke Ovens Waste Management Waste Water Management, MSW Management, Fuel Pellets, Power generation, Use as Fuel Transportation LPG, NG, Biodiesel, MRTS Process Change Petroleum Refineries, Oil & Gas Refineries, Fertilizer CO2 Recovery, Nitrous Oxide (N2O)Destruction, Refrigerant: HFC Abatement , Aluminum: PFC Control Energy Efficiency Efficient Generation (Efficient Machinery, T&D Loss Reduction, Thermal/ fuel, Steam Saving, Thermal Saving, Process Flyash in Cement) Efficient Utilization (Energy efficiency measures for BUILDINGS and industries), Efficient Steam Utilization in Process Industrial Fuel Switch Fossil Fuel to LPG, Natural Gas, Biomass OTHERS Plantation / Forestry, Afforestation, Reforestation

Potential CDM Projects in India
Power sector - Alternate energy source and efficiency
improvement of existing plants
Oil & Gas - Fuel switching & high conversion efficiency
Renewable E - Biomass, wind, solar and hydro power
Industry - Energy efficiency
Transport - Fuel switching
Agriculture/ - Better cultivation practices, high yielding
crops

Driver for CO2 Emission Trading
Differential CO2 Emissions abatement cost Developed Countries Emission Reduction Cost – Japan - $ 400/Ton of Carbon US – $ 200/Ton of Carbon Developing Countries India – $ 25/Ton of Carbon & even less

Benefits under CDM to India
India need energy efficient technologies to
reduce GHG emissions
CDM could help to overcome the financial
constraints associated with the adoption of
cleaner technologies
Renewable energy technologies
are among the low cost options for carbon mitigation

Indian DNA
The Govt. of India has constituted a 9 member National CDM Authority (NCA) during December 2003.
The MoEF being the nodal ministry for CC hosts the NCA headed by The Secretary, MoEF
23

DNA ( Designated National Authority) - India The National Clean Development Mechanism (CDM) Authority Address: 115, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi, India R. K. Sethi , Member Secretary, National Clean Development Mechanism (CDM) Authority, Ministry of Environment and Forests Phone: (91-11) 2436 2252 Fax: (91-11) 2436 2252

CDM OPPORTUNITIES
CDM includes following potential projects:
Increased energy utilization of terminals;
Renewable energy;
Alternative fuels ；
Agriculture (methane and N2O Emission
Reduction Projects);
Industrial Process(Emission reductions of CO2,
HFCs, PFCs or SF6 from industry) ；

Host Country Approval Validation of the Project Registration Monitoring Verification/ Certification Issuance of CERs Feasibility Check PCN, PDD Responsible party involved Steps of the project Steps of the project cycle CDM Project Cycle Duration: 8 to 12 Months Project Developer 1 st Operational Entity Executive Board Project Developer 2 nd Operational Entity Executive Board Project Development CDM Application Project realization

Projectdesign Check if requested Implementation Monitoring & Reporting Validation Project Developer Designated Operational Entity ( e.g DNV) CDM Executive Board Verification Check if requested Issuance of CER Validation Report Verification Report The CDM Project Parties

PROBABLE CDM PROJECTS
ON REGIONAL/DIVISION BASIS/COMPANY BASIS
ROTARYEQUIPMENTS(PUMPS/COMPRESSORS)
ENERGY CONSUMPTION/OPTIMISATION
PLANNING FOR VARIABLE SPEED DRIVES
EVALUATION OF PRESENT AIRCONDITIONING SYSTEMS AND GO FOR ENERGY EFFICIENT VERSIONS
LIGHTING OFBUILDING/ RO/INSTALLATION BY SOLAR/WIND
PIPELINE TRANFERS

Host Country Approval Validation of the Project Registration Monitoring Verification/ Certification Issuance of CERs Feasibility Check PCN, PDD Responsible party involved Steps of the project Steps of the project cycle CDM Project Cycle Duration: 8 to 12 Months Project Developer 1 st Operational Entity Executive Board Project Developer 2 nd Operational Entity Executive Board Project Development CDM Application Project realization

CDM Eligibility
Projects reducing either of 6 GHGs ( CO 2 , N 2 O, CH 4 , PFC, HFC, SF 6 )
Start Date - The implementation/construction or real action of a project activity begins
Projects with start date after 02 August 2008 should inform Host Country DNA and UNFCCC about CDM consideration within six months of Project execution
CDM revenue to be considered in Planning Stage – proof to be provided
Projects should fall under one of the sectoral scopes
CDM projects must promote sustainable development in the host countries
Local/Regional/National policies or standards not eligible
Transfer of know-how and training, cannot be considered

General requirements for CDM projects
Emission reductions are additional;
Baseline and monitoring methodologies comply with requirements; and
Funding for CDM projects must not divert funding from existing official development assistance
CDM projects must promote sustainable development in the countries in which they are located .

The Indian Carbon Market by Sectors Infrastructure: 65% Energy Efficiency: 26 %

Type of Projects Other project activities result in emission reductions Project activities or those improvements in energy eff which reduce energy consumpn, on the supply and/or demand side Renewable energy project have a maximum output capacity Description Type II Type II Type I Category > 60 kt CO2e annually < = 60 kt CO2e annually 3 Output more than 60 GWh per year Maximum output of 60 GWh/year 2 > 15 MW < = 15 MW 1 Large Scale Small Scale S.No.

Concept of Baseline
What is baseline?
The baseline for a CDM project activity is the scenario that reasonably represents the anthropogenic emissions by sources of greenhouse gases that would occur in the absence of the proposed project activity.
The baseline can be used to determine:
whether a CDM project activity is additional; and
the volume of additional greenhouse gas emission reductions achieved by a project activity.
A baseline shall be established:
By using approved/new methodologies
In a transparent and conservative manner

Estimation of Emission Reductions (ERs) Project commissioned Project based emission reductions need to be calculated and verified before they can be sold in the open market MRV i.e. Measurable, Real & Verifiable Time “ With project” emission level “ Without project” emission level = Baseline GHG emissions ERs

Concept of Additionality
Additionality is a principal condition for the eligibility of a project under the CDM
A CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the proposed CDM project activity
The project would not have occurred anyway
Demonstrate intent to reduce GHG emissions
Tool for the demonstration and assessment of additionality (the additionality tool) – used to assess additionality.

Additionality continued…
The additionality tool sets out the following steps to demonstrate and assess additionality:
Step 1: Identification of alternatives to the project activity
Step 2: Investment analysis to determine that the proposed project activity is either (a) not the most economically or financially attractive or (b) not economically or financially feasible;
Step 3: Barrier analysis
Step 4: Common practice analysis

UNDERSTAND AND IMPLEMENT CONSERVATION AND CLEAN DEVELOPMENT MECHANISM TODAY
C ultivate to
L earn
E fficiency
A dded
N orms
BEYOND BUSINESS AS USAL

Step 1a - Identification of realistic and credible alternatives like:
Proposed project activity undertaken without being registered as a CDM project activity
Other realistic and credible alternative scenario(s) to the proposed CDM project activity scenario that deliver outputs and services (e.g. electricity, heat or cement) with comparable quality, properties and application areas;
If applicable, continuation of the current situation (no project activity or other alternatives undertaken).
Step 1b - directed towards ensuring compliance with all mandatory laws regulations
Alternative(s) shall be in compliance with all mandatory applicable legal and regulatory requirements
Where analysis shows that there is widespread non-compliance in a country or region with mandatory laws and policies, then a scenario involving non-compliance is a valid one which may be considered
Step 1: Identification of alternatives to the project activity

Step 1: Continued…
If non-compliance cannot be shown, then eliminate the alternative from further consideration
However, if the only way to comply with mandatory laws or regulations is to implement the proposed project activity, then the activity will not be considered additional.

Step 2: Investment analysis
Determines whether the proposed project activity without the revenue from the sale of CERs is either:
not the most economically or financially attractive or
not economically or financially feasible
Step 2(a) involves determining which analysis method to apply - simple cost analysis, investment comparison analysis or benchmark analysis
If the CDM project activity and the alternatives identified in Step 1 generate no financial or economic benefits other than CDM related income, then apply the simple cost analysis (Option I).
Step 2(b) Otherwise, use the investment comparison analysis (Option II) or the benchmark analysis (Option III)

Step 2: Investment analysis continued…
If the simple cost analysis is chosen:
Document the costs associated with the CDM project activity and demonstrate that there is at least one alternative which is less costly than the project activity
If the investment comparison analysis is chosen:
Identify the financial indicator, such as IRR, NPV, cost benefit ratio, or unit cost of service most suitable for the project type and decision-making context
If the benchmark analysis is chosen:
Identify the financial/economic indicator, such as IRR, most suitable for the project type and decision context

Step 2(c) - Calculating and comparing the financial indicators of the proposed project activity and the alternatives identified in step 1
All relevant costs (including the costs of investment, maintenance and operation, and so on) and revenues (excluding CER revenue, but including subsidies/fiscal incentives, official development assistance and so on) should be included.
Assumptions across the different scenarios (project and alternatives) must be consistent
The investment analysis should be presented in a clear and transparent manner in the PDD

Step 2(d) requires a sensitivity analysis
It shows whether the conclusion regarding the financial/economic attractiveness is robust to reasonable variations in the critical assumptions
A project activity will only satisfy the requirements of step 2 (investment analysis) if it can be shown that implementation of the project would not be the most financially/economically attractive option in any case
If the requirements of this step are satisfied, there is no need to conduct a barrier analysis (step 3).
If the investment analysis indicates, the project would have been carried out in any case, then further barriers must be identified under step 3 for the project activity to be considered additional.

Step 3: Barrier analysis
Determines whether the proposed project activity faces barriers that:
prevent the implementation of this type of proposed project activity; and
do not prevent the implementation of at least one of the alternatives
Barriers must prevent the project from being implemented unless it is registered under the CDM
These barriers may include:
Investment barriers
Technological barriers
Prevailing practice barriers - for example, that the project activity is the 'first of its kind'

Step 4: Common Practice Analysis
This step is a credibility check, in that if similar activities are widely observed and commonly carried out.
Step 4 involves analysing similar activities to describe whether and to which extent similar activities have already been implemented in the region.

Project Emissions
Project emissions refer to emissions within the project boundary attributable to the implementation of the project activity
Project emissions must be deducted from the emission reductions generated by the project activity.
Examples of Project emissions:
Biomass burning
Fossil fuel use
Transportation

Sustainable Development Criteria
Prerogative of the Host Party
Social well being:
lead to alleviation of poverty
generate additional employment,
improve quality of life
Economic well being:
should bring in additional investment consistent with the needs of the people.
Environmental well being:
biodiversity-friendliness;
Impact on human health;
reduction of levels of pollution in general
Technological well being:
should lead to transfer of environmentally safe and sound technologies

Thank you for your attention !

BEST WISHES TO ALL OF YOU TO ACHIEVE CLEAN CLIMATE PCRA SERVICES AT A REASONABLE COST ENERGY AUDIT/ CLEAN DEV. MECHANISM

NLC ONGC SCCL CPCL TNEB TPL ITCOT SAINT GOBAIN K M M L

END 2004 Source : PPAC ready reckoner,01.04.06 Per Capita Energy Consumption (Primary Commercial Energy) COUNTRY
PER CAPITA GENERATION ?

SOLUTIONS
ATTITUDE; CONSERVATION NOT CONSUMPTION
SHIFT TO BEST AVAILABLE TECHNOLOGY
ADOPT PROCESS IMPROVEMENTS THRO
ENERGY EFFICIENCY STEPS
RETROFIT EFFICIENT EQUIPMENTS

Energy Conservation Vs Energy Efficiency Incandescent Lamp 60 W Compact fluorescent Lamp 15 W Energy Efficient Equipment uses less energy for same output and reduces CO 2 emissions CO 2 Emission – 65 g/hr CO 2 Emission – 16 g/hr

CARBON
100(KWH/M) UNITS ELECTRICITY-
0.9 T/YR
A FAMILY OF FOUR SPENDING RS 3000/MONTH ON ENERGY CONTRIBUTES @1 TON OF CO2

In India on the Average
1MWh of Power = 0.8 t CO2
So saving of 1MWh will get you 1MWHx24x365x0.8 CERs per year
Current rate of CER= Euro 18
So yearly income=Rs.1x24x365x.8x18x62
= Rs. 7820928/-
TRADABLE UNITS

WHAT IS GHG
HOW IT AFFECTS US
GLOBAL ACTIVITIES
WHERE WE STAND

Significant changes to the environment began with human civilization :
The discovery of fire-CO2
The domestication of livestock-CH4
The development of cultivated crops-N20
The building of permanent settlements-TOTAL DAMAGE .
MOTHER EARTH SAVES LIVING BEINGS
HUMAN SAYS HE SAVES THE EARTH
ENVIRONMENTAL CHANGES PCRA – An integrated Energy Solution Provider

ESSENTIAL FIVE
Human worship the five elements of nature
Earth as ‘Prithvi ,
Water as “Jal ’,
Agni as ‘Energy ’,
Air as ‘Vayu’, and
Sky as ‘Akash’.
Today human through science try to have control on all

Polluting gases/elements
LEAD,
Sulfur Gases(SOX)
Nitrogen gases(NOX)
Un-burnt Carbon /HC gases
Particulate matters
Volatile organic compounds
Atmospheric POLLUTION ALREADY ADDRESSED GREEN HOUSE GASES PCRA – An integrated Energy Solution Provider

WHAT IS GHG
GREEN HOUSE GASES ARE :
Carbon Di-Oxide,CO2
Methane ,CH4
Nitrous Oxide, N2O
Hydro Fluoro Carbons, HFC
Per Fluoro Carbons, PFC
Sulpher Hexafluoride SF6
GHG EMISSIONS PCRA – An integrated Energy Solution Provider

GREENHOUSE EFFECT- SIMPLIFIED GH Gases

CLIMATE CHANGE-SUSTAINABILITY

Global Warming MEASURE OF WARMING
INTER GOVT PANEL FOR CLIMATE CHANGE

MEASURED TEMPERATURE CHANGE

Man-made Greenhouse Effect Source: IPCC
Changes to the natural greenhouse effect are
a result of man-made emissions of
Greenhouse Gases (GHG):
Carbon dioxide- 
Methane
organic matter decomposes
in the absence of oxygen:
wetlands
plantations
landfills
Bio-wastes
Nitrous oxide (N2O)
bacteria transform nitrate from fertilisers
Hydro- & Perfluorocarbons
cooling agents;
contrast-enhanced ultrasound
Sulphurhexafluoride (SF6)
Dielectric medium:SF6

The carbon cycle

CO2 in Atmosphere 1.7% Soil and peat 3.4 % Calcareous rocks + Fossil fuels 11.3 % Living organisms on land and in sea 2.6% Ocean depths in dead corals And submarine organisms 81.0% Death + decay Volcanic emissions Respiration, decay, Fires + fuel wood Photosynthesis Burning fossil fuels Industrial processes Mining + extraction Fossilisation Via precipitation Diffusion Processes The Earth’s carbon stores

CLIMATE CHANGE AND SUSTAINABILITY 23900 Sulpher Hexafluoride 560 to 9200 Per Fluoro Carbons 140 to 11700 Hydro Fluoro Carbons 310 Nitrus Oxide 21 Methane 1 Carbon Di-Oxide Global warming potential as CO2 equivalent Green House Gases under Kyoto Protocol

CLIMATE CHANGE AND SUSTAINABILITY Thus world today have only two options: either to stop generating GHGs stop development synergize development with environment. concern of economic development at any cost ; PCRA – An integrated Energy Solution Provider

CLIMATE CHANGE AND SUSTAINABILITY Initiatives taken to mitigate/CONTROL the emission, The best known being the Kyoto protocol. Under the aegis of the United Nations Framework Convention on Climate Change. UNFCCC PCRA – An integrated Energy Solution Provider

CLIMATE CHANGE AND SUSTAINABILITY
VERY SURVIVAL OF THE LIFE ON THE EARTH IS AT STAKE.
The 4th assessment report of the Intergovernmental Panel on Climate Change (IPCC)
the world has just eight years(2015) to act in a constructive manner .

The five nations with the largest total population living in
endangered coastal areas are all in Asia:
China,
India,
Bangladesh,
Vietnam and Indonesia
The sentiment is shared globally, partly concluded in
global meeting at Bali, Indonesia.
CLIMATE CHANGE AND SUSTAINABILITY PCRA – An integrated Energy Solution Provider

CLEAN DEVELOPEMENT GLOBAL ACTIVITIES PCRA – An integrated Energy Solution Provider

Global steps-SINCE 1990 1992 Rio Conference: 154 states signed the UN Framework Convention on Climate Change (UNFCCC) 2001 Finalisation of the operational details of the Kyoto Protocol at COP 7 in Marrakech Nov. 2001 1995 IPCC’s, Inter govt panel on climate change,2nd report concluded that “ the <-balance of evidence suggests that there’s a discernible human influence on global climate .” 1997 The Kyoto Protocol was adopted in1997 giving industrialised countries-> a legally binding commitment to reduce their GHG emissions. 2000 First credits from GHG emission reduction projects 1994 UNFCCC entered into force on 21 March 1994->

UN Framework Convention on Climate Change--UNFCCC UN Framework Convention on Climate Change signed by 184 states Annex I countries (industrialised countries) committed themselves to reduce their GHG emissions Annex I Non-Annex I countries (developing countries)

The Kyoto Protocol (I)
The Kyoto Protocol makes the UNFCCC
UN Framework Convention on Climate Change
operational and legally binding.
The industrialised countries commit themselves
to reduce their collective GHG emissions by at
least 5% below 1990 emission levels.

Kyoto Protocol (Cont…)
The protocol list of policies for the developed countries for achieving their commitment.
Enhancing Energy Efficiency in relevant sectors of the national economy.
Promoting sustainable form of development
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CLIMATE CHANGE AND SUSTAINABILITY-THE SOLUTION > The Energy, Efficiency, Environmental Solution on climate change is the seed of all activities in sustainable development

Three flexible mechanisms under the
Kyoto protocol.
They are
Joint Implementation (JI),
Clean Development Mechanism (CDM) and
International Emission Trading (IET).

Clean Development Mechanism Art.12
BY Annex 1 Country IN Non-Annex 1 Country - Emission reduction alongwith sustainable development Flexibility Mechanisms for Emissions Trading

CLIMATE CHANGE AND SUSTAINABILITY CDM is the mechanism involving Annex I and non Annex I nations. Under the CDM, an industrialized country with a GHG reduction target can invest in a project in a developing country without a target and claim credit for the emissions that the project achieves .

Climate Change : Indian Perspectives
strengthening of global cooperation central to any effort to address climate change
India demonstrated its commitment by acceding to Kyoto Protocol in August 2002 and successfully hosting COP8 in Delhi during October – November 2002
Delhi - COP8 provided a new direction to Climate Change in the context of sustainable development and brought technology transfer
13

CLIMATE CHANGE AND SUSTAINABILITY Opportunities to developing nations D eveloping nations can benefit through the CDM of the Kyoto protocol. Industries can develop projects that will reduce the GHG emission on a real, quantifiable term The emission reductions thereby achieved can be traded in the carbon markets.

Potential CDM Projects in India
Power sector - Alternate energy source and efficiency
improvement of existing plants
Oil & Gas - Fuel switching & high conversion efficiency
Renewable E - Biomass, wind, solar and hydro power
Industry - Energy efficiency
Transport - Fuel switching
Agriculture/ - Better cultivation practices, high yielding
crops

WHAT YOU SHOULD DO
Energy Efficiency – Key Steps:
• Formulation/Review of Company/Corporate energy policy and
energy objectives
• Understand existing energy performance analysis system,
energy metering, instrumentation , controls & Analyze existing
system

• WHAT YOU SHOULD DO
Conduct Internal EnergyAudit/ Benchmarking exercise
Compare with external international benchmarks,
• Finalize best operation and maintenance practices
• Conduct training to engineers /energy managers
Formulate benchmarks for plants and set up best practices.
• Set energy budgets and targets at product, utility
and process levels.

• WHAT YOU SHOULD DO
Formulate reports
Assess of energy consumption/ performance.
Include feed back reports and action taken.
Include the aspect of specific energy consumption
identify the new targets based on statistical methods.
• Include the scheme of rewarding the best performers
individual/areas .

The Kyoto-protocol :potential CDM project,
means
“ GHG reductions that are additional to any that would occur in the absence of the project activity ”.

CLIMATE CHANGE AND SUSTAINABILITY Contribution in GHG reduction: The project must demonstrate reduction of GHG that would not have otherwise occurred. Baseline without the project is estimated & benefits are calculated over this baseline.

CLIMATE CHANGE AND SUSTAINABILITY Climate Change Financing CDM is the option for climate change with financing available . The Certified Emission Reduction (CER) can be accounted/accumulated Under CDM.

TRADABLE UNITS
In India on the Average
1MWh of Power = 0.8 t CO2
So saving of 1MWh will get you 1MWHx24x365x0.8 CERs per year
Current rate of CER= Euro 18
So yearly income=Rs.1x24x365x.8x18x62
= Rs. 7820928/-

Driver for CO2 Emission Trading
Differential CO2 Emissions abatement cost Developed Countries Emission Reduction Cost – Japan - $ 400/Ton of Carbon US – $ 200/Ton of Carbon Developing Countries India – $ 25/Ton of Carbon & even less

Benefits under CDM to India
India need energy efficient technologies to
reduce GHG emissions
CDM could help to overcome the financial
constraints associated with the adoption of
cleaner technologies
Renewable energy technologies
are among the low cost options for carbon mitigation

Indian DNA
The Govt. of India has constituted a 9 member National CDM Authority (NCA) during December 2003.
The MoEF being the nodal ministry for CC hosts the NCA headed by The Secretary, MoEF
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DNA ( Designated National Authority) - India The National Clean Development Mechanism (CDM) Authority Address: 115, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi, India R. K. Sethi , Member Secretary, National Clean Development Mechanism (CDM) Authority, Ministry of Environment and Forests Phone: (91-11) 2436 2252 Fax: (91-11) 2436 2252

CDM OPPORTUNITIES
CDM includes following potential projects:
Increased energy utilization of terminals;
Renewable energy;
Alternative fuels ；
Agriculture (methane and N2O Emission
Reduction Projects);
Industrial Process(Emission reductions of CO2,
HFCs, PFCs or SF6 from industry) ；

BEST WISHES TO ALL OF YOU TO ACHIEVE CLEAN CLIMATE PCRA SERVICES AT A REASONABLE COST ENERGY AUDIT/ CLEAN DEV. MECHANISM

Thank you! LET US CONTINUE WITH ENERGY CONSERVATION MEASURES

PCRASR

by karthik071984 on Jul 09, 2010

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