Energy management and energy audit in rupandehi

A Project Report
on
Energy Management and Energy Audit in Rupandehi
Submitted in Partial Fulfilment of the Requirement for the Award of the Degree of
Masters of Business Administration (MBA)
By
Mohammad Abul Hasan Khan
Roll No – 1308014269
Under the Guidance of
Mr. Stefan Landauer
International Development Advisor
Department of Business Studies
Sikkim Manipal University
India

Energy Management and Energy Audit in Rupandehi Page 1
By
1308014269
Submitted to Department of Management Studies in partial fulfilment of the
requirements for the Degree of
at the
Sikkim Manipal University
June 2015
Signature of Author …………………………………………………………………………………...
Department of Management Studies
June 2015
Certified by …………………………………………………………………………………………….
Stefan Landauer
International Development Advisor
Project Guide

By
1308014269
Submitted to Department of Management Studies in partial fulfilment of the
requirements for the Degree of
Executive Summary
Nepal’s access to energy and modern energy services is inadequate and the use of energy
is inefficient. The electrical power supply is characterized by scheduled power interruption up
to 16 hours daily. The insufficient and interrupted supply of electricity affects industrial
production negatively and forces more and more industrial and commercial enterprises to
generate their own electricity generally by means of diesel generators. Over the last year its
development has led to the increased import of petroleum products contributing to an
increased trade balance deficit. Furthermore, the additional burning of fossil fuels results in
higher emissions of climate change relevant and environmentally harmful pollutants.
Energy efficiency improvements help industries, business, governments, and consumers
meet their needs by using less energy, saving them money, driving investment across all
sectors of the economy, creating much needed jobs, and reducing the myriad of
environmental impacts of the energy production system. The industrialists, regulators, and
citizens are increasingly recognizing the energy efficiency is a crucially important national
resource. In fact, the demand for the energy efficiency audit by the industrialists in
Rupandehi is increasing day by day.
After performing the energy efficiency audits in the industries as well as the business, the
project has identified the saving potential of around 2,000 kVA electrical demand, 3,39,000
kWh electricity, 33,380 litres of Diesel fuel, 27,300 litres of Furnace Oil and 31,14,000 MJ of
thermal energy.
Electricity and each type of fuel savings are being compared with the annual electricity sales
by Nepal Electricity Authority (NEA) and fuel sales by Nepal Oil Corporation (NOC). Practice
of energy efficiency in the different sectors has proved the saving of electrical energy
equivalent to 4.03% of the sales by NEA and 2.39% of diesel sales by NOC. Finally, the
energy efficiency project is being adopted by the industrialists and the business personnel to
enhance their energy use.
Project Guide: Stefan Landauer
Title: International Development Advisor

Acknowledgement
First of my sincere thanks goes to all people helped me in making the practical any way
how, directly or indirectly. I express my deep sense of gratitude to my project guide Mr.
Stefan Landauer and the Butwal Chamber of Commerce and Industry, Rupandehi (BuCCI)
and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) who has jointly
employed me as a project manager of the Energy Efficiency Unit (EEU BuCCI).
I express my special thanks to those who supported me my providing the access to the
industries for the energy audit and the promotional activities during the project period and
also to those people of management who have helped me during the queries about energy
efficiency such as Mr. Bhishma Pandit, Mr. Alexandre Seire, my teammate Mr. Abishek
Shrestha and Mr. Govinda Neupane.
I would be failing in my duty if I don’t offer special thanks to my parents and god almighty for
his showers of blessing and pray that he may continue to bless my endeavours.
At last I will save some thanks for me, because I have spent too many days to make this
practical. But one thing comes in my mind that I can make better practical now.
Because practice makes the man perfect, just perfect
- Mohammad Abul Hasan Khan

CONTENTS
S. No. Topic Page No.
1 Executive Summary 2
2 Acknowledgement 3
3 Contents 4
4 Background and Setting 5
5 Introduction to the project 7
6 Objective of the project 8
7 Literature Review (Problem Statement) 10
8 Research Design and Methodology of the project 11
Planning process 13
Baseline study of Industries 17
Institutionalization of EE-Unit within BuCCI 19
Promotional Activities 20
Energy audit Sales activities 21
Performance of Energy Audit 23
Staff capacity development 27
Monitoring and Evaluation 29
9 Conclusion 30
10 Recommendations 31
11 Annexes 33
12 Bibliography 60

Background and Setting
A comparison of international and regional figures demonstrates that Nepal’s access to
energy and modern energy services is inadequate and that the use of energy is inefficient.
According to the latest census data only about two third of the population have access to
electricity. The electrical power supply is characterized by scheduled power interruption up
to 16 hours daily. Due to increasing power demand and delays in planning and construction
of hydro power plants, and the slow expansion of transmission lines and the distribution
network a short or medium term improvement of this situation cannot be expected.
The insufficient and interrupted supply of electricity affects industrial production negatively
and forces more and more industrial and commercial enterprises to generate their own
electricity generally by means of diesel generators. Over the last year its development has
led to the increased import of petroleum products contributing to an increased trade balance
deficit. Furthermore, the additional burning of fossil fuels results in higher emissions of
climate change relevant and environmentally harmful pollutants.
In 2009 within the context of bilateral development cooperation Nepal and Federal Republic
of Germany agreed on the joint implementation of the Nepal Energy Efficiency Program
(NEEP). GIZ is acting in execution of the commission with which it has been charged by the
Government of the Federal Republic of Germany. On behalf of the Government of Nepal the
Water and Energy Commission Secretariat (WECS) acts as the Executive Agency of the
program and also implements the component that targets the improvement of the framework
conditions for energy efficiency on policy level. Implementing partners for the component
Energy Efficiency at the national level is the Federation of Nepalese Chamber of Commerce
and Industry (FNCCI). The program has initially been planned for 2 phases over an eight-
year period.
The program aims at making energy use more efficient for domestic and productive
purposes in Nepal.
Nepalese industrial units can significantly cut their operational cost and produce
environmentally friendlier if they use energy more efficiently. For the targeted energy
intensive industrial sectors (Hotels, Metal, Food and Beverage, Cement, Pulp and Paper,
Cold Storage, Soap and Chemical and Brick industries) an initial baseline study indicates
energy saving potentials of around 15% in electrical and 30% in thermal energy. In addition,
there are substantial shortcomings in end-use efficiency on the part of the industry. The
economic and environmental benefits of efficient energy use are largely absent from private,
public and business awareness. Industrial enterprises are unable to realize the cost-saving
potential of energy-efficient production technologies because of a lack of qualified energy
auditors.
FNCCI-EEC has signed MoUs with Butwal Chamber of Commerce and Industry, Rupandehi
(BuCCI) with the aim to promote, assess and implement “Energy Efficiency in Nepalese
Industries”.
By signing the MoU FNCCI EEC committed itself to undertake the following activities for the
affiliated district chambers:
 Promote EE among the members of the district chamber.

 Share the information and knowledge regarding energy efficiency and others with the
district chamber.
 Deliver value added services to the stakeholders in partnership with the district
chamber, wherever and whenever feasible.
 Offer information on different EE related enhancement opportunities including
capacity development interventions to the district chamber.
 Facilitate district chamber and industries energy audits, EE financing, implementation
of EE measures and pilot projects.
 Review and verify reports and recommendation generated by Energy Auditors and/or
the district chamber.
 Maintain records of the services delivered, projects, reports, recommendation,
implementation measures, suppliers, banks etc.
 Monitor & evaluate the EE Implementation and performance of the district chamber.

Introduction to Project
Butwal Chamber of Commerce and Industry, Rupandehi (BuCCI)
Butwal Chamber of Commerce and Industry, Rupandehi (BuCCI) is an ISO 9001:2008
certified business membership organizations established in 1953 A.D. with the main
objectives of the safeguarding the professional rights of entrepreneurs and providing
business management services to entrepreneur’s thereby enhancing the economic
development of the district Rupandehi. In order to realize its mission and vision BuCCI has
over the years gained experience of working in cooperation with government organizations,
and international partners like GIZ, DED, SEQUA, SES and UNDP.
With wider objectives and mission, BuCCI has established an Energy Efficiency Unit (EEU)
with the support of GIZ hereafter referred to as EEU BuCCI, in its own periphery as the
service provider in the field of every business activities to minimize the wastages of energy
in the industries thus to promote better utilization of energy and reduce the production cost.
The main responsibilities of EEU BuCCI in Butwal Chamber of Commerce and Industry,
Rupandehi are technical support as the performance of energy audit, institutional
development, awareness creation and advocacy.
What is an Energy Audit?
Energy audits assist industrial companies or facilities in understanding how they use energy
and help to identify the areas where waste occurs and where opportunities for improvement
exist. An energy audit is a key to assessing the energy performance of an industrial plant
and for developing an energy management program. The typical steps of an energy audit
are:
• preparation and planning
• data collection and review
• plant surveys and system measurements
• observation and review of operating practices
• data documentation and analysis
• reporting of the results and recommendations
The need to reduce energy costs is a crucial business practice for successful organizations,
and energy audits have begun to play a more significant role in managing energy expenses.
Energy audits can encompass a variety of surveying techniques but most commonly consist
of an analysis of energy usage within a building or facility and its contained equipment.
Energy audits can be walk through or detailed/diagnostic for energy surveys in industrial
facilities. Audits include comprehensive lists of energy efficiency measures derived from
building and facility performance. Energy audits also include financial analysis for each
identified measure. Energy audits can use information from building management systems
(BMS) with the goal of reducing energy usage without negatively impacting the company’s
everyday practices. Industrial energy audits often focus on key aspects of the overall system
that tend to use the most energy. Common examples of audited equipment include HVAC,
lighting, and plug load.

Objectives of the project
The objective of the project is to establish an Energy Efficiency Unit in Rupandehi district
which will provide following services:
 Performing Energy Audits
 Diagnosis and Detailed Energy Audit with EEC FNCCI coordination
 Dissipate information and Awareness Creation on Energy Efficiency
 Facilitator for suppliers of energy-efficient technologies
Performing Energy Audits:
Energy audit is an inspection, survey and analysis of energy flows for energy conservation in
a building, process or system to reduce the amount of energy input into the system without
negatively affecting the output(s). The main objective of the project is to perform the energy
audits in the industries of Rupandehi district along with the neighbouring districts too.
Types of energy audits
The type of industrial energy audit conducted depends on the function, size, and type of the
industry, the depth to which the audit is needed, and the potential and magnitude of energy
savings and cost reduction desired. Based on these criteria, an industrial energy audit can
be classified into two types: a preliminary audit (walk-through audit) and a detailed audit
(diagnostic audit).
a) Preliminary audit (Walk-through audit)
In a preliminary energy audit, readily-available data are mostly used for a simple analysis of
energy use and performance of the plant. This type of audit does not require a lot of
measurement and data collection. These audits take a relatively short time and the results
are more general, providing common opportunities for energy efficiency. The economic
analysis is typically limited to calculation of the simple payback period, or the time required
paying back the initial capital investment through realized energy savings.
b) Detailed audit (Diagnostic audit)
For detailed (or diagnostic) energy audits, more detailed data and information are required.
Measurements and a data inventory are usually conducted and different energy systems
(pump, fan, compressed air, steam, process heating, etc.) are assessed in detail. Hence, the
time required for this type of audit is longer than that of preliminary audits. The results of
these audits are more comprehensive and useful since they give a more accurate picture of
the energy performance of the plant and more specific recommendation for improvements.

The economic analysis conducted for the efficiency measures recommended typically go
beyond the simple payback period and usually include the calculation of an internal rate of
return (IRR), net present value (NPV), and often also life cycle cost (LCC).

Literature Review (Problem Statement)
Energy plays a very important role in the development of a country. For economic
development of a country, a reliable and affordable supply of energy is essential. Nowadays
Nepal’s economy is struggling with shortage of affordable energy today. For example, during
load shedding time the industries have to generate electricity by diesel generators at the
triple price. Assuming raising fossil fuel prices in the future the economic burden for the
Nepalese economy will be even higher than today.
Nepal is the second richest country in water resource having the capacity to develop 83,000
megawatts of electricity. But being a poor and underdeveloped country, Nepal is not able to
utilize its natural resources for the generation of electricity, as a result of which Nepalese
people are facing the problem of load shedding. To overcome the problem of load shedding
Nepal government has started a program called Nepal Energy Efficiency Programme
(NEEP) whose core objective is to save energy as one unit saved at field level is equivalent
to two units generated by hydro power house, in collaboration with German government
(GIZ).
Rupandehi is the industrial hub of Nepal. Maximum numbers of industries are found in
Rupandehi district. Among the various industries, maximum are of small scale followed by
medium and then large. In the small scale industries the energy consumption is low but
according to the structure, lot of energy is wasted during the operation. If the wasting energy
could be saved, it could be supplied to others. A baseline study conducted by Nepal Energy
Efficiency Program (NEEP) in eight energy-intensive industrial sectors of Nepal estimated
annual saving potentials of about 160 Gigawatt hours of electricity that is equivalent of the
consumption of 215,000 Nepalese households. About 8 Million Giga-Joule of thermal energy
could be saved which correspond to 224,400 Million Litres of Diesel to be imported. A total of
139 tons of carbon emissions could be reduced annually. Expressed in money terms,
Nepalese industries could save 6 Billion Nepalese Rupees yearly by implementing energy
efficiency.
Energy efficiency could play an important role to overcome the current energy crisis in the
country. Previous experiences have shown that there are huge saving potentials in both
thermal as well as electrical energy. Amore energy efficient Nepalese industry will be more
productive and competitive on the international markets. Enhancing efficient use of energy
will also slow down the growth of energy demand and, thus, reduce the investment costs in
the generation sector.

Research design and Methodology of the Project
By analysing the situation of the energy scenario of the Rupandehi district, Butwal Chamber
of Commerce and Industry, Rupandehi a leading chamber of Rupandehi district has
established an Energy Efficiency Unit (EEU) which is supported by Nepal Energy Efficiency
Programme and German government (GIZ / NEEP).
Initially the Energy Efficiency Unit (EEU) was established and the required professionals
were hired on a contract. After the EEU setup was established, the working plan is prepared
for a year. The activities and sub activities of the working plan for a year’s prospective are
listed below:
1. Planning Process,
 Strategic, operational and working plan
 Initial workshop
 Course correction workshop
 Feedback meetings with EE-Unit Management Board
2. Baseline study of industries,
 total number of entities
 size of the market
 segmentation, sector wise
 market potential
 Regional allocation
3. Institutionalization of EE-Unit within BuCCI,
 Write Business plan
 Define organizational structure
 Purchase of energy audit equipment
4. Promotional Activities,
 Awareness campaigning
 Develop and disseminate EE promotional material
 Publicate EE services in newspaper, FM, email, homepage, Facebook page, etc.
 EE product Presentation through manufacturers
 Consulting on EE measures
 Exhibition and placement of stalls
5. Energy Audit Service Sales activities,
 Acquisition by telephone
 Key Customer Visits
 Door to door sales strategy
6. Performance of Energy Audits,
 Performance of Walk-Through EA
 Performance of detailed EA in co-work with EEC

7. Staff Capacity Development
 Onsite energy audit training in the presence of senior energy expert
 ISO 50001 Lead Auditor’s training on energy management
8. Monitoring and Evaluation of the service provided
After finalizing the working plan it was approved by the management board by organizing a
strategic planning workshop and is being implemented step by step. During the planning
workshop, the timeline for the project was also determined. Within a year, at least 40 walk
thru and 6 detailed/diagnostic energy audits must be performed.

Planning Process
It is the initial phase of a project. In the planning process a draft of the strategic, operational
and working plan was drafted, which was discussed among the board members by
organizing a planning workshop. After the planning workshop, a clear vision, mission and
strategic objectives were defined.
The Vision, mission and Strategic action plans of the project are given below:
Vision:
“Efficient use of energy, our commitment”
“phf{ bIftf, xfd|f] k|lta4tf”
Mission:
“Promoting efficient use of energy in every business activities to enhance competitiveness”
“phf{ bIftfnfO{ a9fjf lbO{ k|To]s Joj;fodf k|lt:kwf{nfO{ k|f]T;fxg lbg]”
Strategic Objectives:
The strategic objectives/plans of BuCCI EEC unit are broadly classified into four main parts.
They are:
1. Advocacy
2. Institutional development
3. Awareness creation
4. Action (Energy audit)
1. Advocacy
The advocacy is the political process by an individual or group which aims to influence
public-policy and resource allocation decisions within political, economic, and social systems
and institutions. The advocacy process of the EEC Unit will work on the following basis:
1. Local and
2. Central
Local basis:
On the local basis, the EEC Unit of Butwal Chamber of Commerce and Industry, Rupandehi
will try to achieve following objectives:
 To persuade local industries for the energy audit,
 To make energy audit compulsory at local basis,
 To help in tax benefits for importing energy efficient machines,
 To help in tax benefits for low energy consuming industries,
 To de-motivate the utilization of high energy consuming machines,
 To provide benefits for the industries those adopt energy audit.

Central basis:
On central basis, EEC Unit of Butwal Chamber of Commerce and Industry, Rupandehi will
cooperate with FNCCI-EEC for the conduction of training program and Diagnostic/Detailed
Energy Audits. EEC Unit of Butwal Chamber of Commerce and Industry, Rupandehi will
urge Nepal government to develop Energy Efficiency Act for national level. EEC Unit of
BuCCI will also urge the government to develop a rule for compulsory energy audit for the
industries for its renewal.
2. Institutional development
Under the Institutional Development program, the objectives of EEC Unit are as follows:
 To determine a fee structure of EEC Unit services to industries and stakeholders on
commercial basis,
 To identify the opportunities and potential for EE measure based on the needs of
industries,
 To define the required electrical and thermal energy auditing equipment,
 To conduct training needed assessment for EEC Unit staff, industry core staff and
coordinate with FNCCI-EEC to conduct training program,
 To promote the EEC Unit issues and services amongst BuCCI,
 To conduct the energy auditors training for the local engineers (Mechanical or
Electrical).
3. Awareness creation
EEC Unit of Butwal Chamber of Commerce and Industry, Rupandehi will conduct various
awareness creation programs at various selected sectors. The lists of the selected areas for
the conduction of the awareness creation program are:
 Auto village Maina Nagar,
 Butwal industrial estate,
 Interaction program with members of BuCCI,
 Meeting with SiCCI,
 Meeting with chamber of industries,
 To conduct training for the industrial technicians/workers,
 Door to door awareness program,
 Meeting with government officials,
 Placement of stall in Melas,
 Meeting with other chamber of commerce and industries.
The awareness programs will be conducted through presentation, newsletters, pamphlets,
brochures, factsheets, social networking sites, phone calls, emails.
4. Action (Energy audit)
Action is the final objective of EEC Unit. Action refers to the energy audit performed by the
EEC Unit. The energy audit is of three types. They are (1) Walk through Energy Audit, (2)

Detailed Energy Audit, and (3) Diagnostic Energy Audit. The main goal of the EEC Unit of
Butwal Chamber of Commerce and Industry, Rupandehi is to conduct energy audit.
Under action (energy audit) objectives following are the main goal.
 To conduct the walk through energy audits of BuCCI members industries as well as
other industries,
 To coordinate FNCCI-EEC to conduct the detailed/diagnostic energy audit,
 To share the data, information and knowledge regarding energy efficiency and others
with FNCCI-EEC,
 To refer the requests from the industries and other stakeholders regarding the energy
efficiency issues to FNCCI-EEC,
 To minimize energy costs / waste without affecting production & quality,
 To minimize environmental effects,
 To reduce imports of energy and reduce the drain on foreign exchange,
 To improve exports of manufactured goods (either lower process or increased
availability helping sales) or of energy, or both,
 To relieve shortage and improve development,
 To monitor the energy efficiency performance of industries inside the district
wherever feasible.
The lifecycle of the energy efficiency project is shown in the figure below:
Course correction workshop
The course correction workshop was organised to review the set goals and what have been
achieved till date. The course correction workshop was conducted in the presence of the
selected members of the board which have the authority to make some decisions. During the
course correction workshop, the working plan was reviewed and the unnecessary activities
were modified / replaced with suitable activities that fit the situation accordingly.

Feedback meetings with EE-Unit Management Board
Every month a feedback meeting is organised in the presence of the board members to
report the board about the works of the last month and inform the board about the activities
to be performed in the coming month. If there is any problem, the board provides the solution
through pool of experience and expertise in the field of handling the project risks.

Baseline study of industries
There are wide varieties of Industries in Nepal including small, medium and large industries
and also are working in various sectors. The baseline study of the industries was carried out
for selected eight sectors of Industries in Rupandehi to assess the potentials for more
efficient use of energy.
The selected sectors are Cement, Pulp & Paper, Food, Metal (Iron & Steel), Soap &
Chemicals, Hotel, Brick Production and Cold Storage.
The survey results show that there is around 83,660 MWh of electrical and 2,230,837 GJ of
thermal energy saving potentials for the surveyed 200 units of industries. The macro-
economic projections show that the potential saving for the electrical and thermal energy for
the eight sectors in the country as a whole are 156,676 MWh and 8,079,920 GJ respectively.
The CO2 reduction from the improvement of EE is estimated to be 136.938 MT for the 200
surveyed industries and this figure projected for the eight sectors in the country is
507,247.28 MT.
Observations and the areas of potential savings have been highlighted for each sector and
subsectors of industries under consideration. Electricity and each type of fuel savings have
been compared with the annual electricity sales by Nepal Electricity Authority (NEA) and fuel
sales by Nepal Oil Corporation (NOC). Practice of energy efficiency in the eight sectors can
save electrical energy equivalent to 4.03% of the sales by NEA and 2.39% of diesel sales by
NOC. Finally, recommendations have been given for enhancement of energy efficiency
practice in the industrial sector in the country.
Spatial Distribution of Industries in Lumbini Zone
S.
No.
Zone Cement Paper Food Metal Soap Hotel Brick
Cold-
storage
Total
1 Lumbini 15 3 14 9 4 4 45 1 95
Source: CME, 2008 Directory and Associations

Institutionalization of EE-Unit within BuCCI:
Institutionalization means to become accepted and used by many people: to establish
(something) as an institution or to put some branch in an institution. The energy efficiency
unit is a newly established branch and is at the initial phase.
 Write Business plan
 Define organizational structure
 Purchase of energy audit equipment
Business Plan:
A business plan is a formal statement of business goals, reasons they are attainable,
and plans for reaching them. It may also contain background information about the
organization or team attempting to reach those goals. A business plan is an essential
roadmap for business success. It consists of setting price of the services, cost and revenue.
The price of the energy audits are defined by conducting the planning workshop and a list of
the price is given below:
S. No.
Scale of
Customer
Demand
Electricity
Bills
EA Price
Rate for
DEA
1 Small
50 kVA 50,000 6,000
150,000 to
200,000
100 kVA 1,00,000 10,000
2 Medium 500 kVA 2,50,000 20,000
3 Large >500 kVA >2,50,000 30,000
Note: 50% discount to member industries
25% discount of non-member industries

Organizational Structure:
An organizational structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organizational aims. It can also be
considered as the viewing glass or perspective through which individuals see their
organization and its environment.
The organizational structure is given as Annex 1.
Purchase of Energy Audit Equipment: The EEU BuCCI has purchased the equipment for the
walk through energy audit. The walk through energy audit equipment purchased is listed
below:
S.
No.
Equipment Specification Description
1
Clamp on Power
Analyser
Mastech MS2205
For the analysis of the electrical
parameters.
2
Clamp on Power
Analyser
Mastech MS2203
For the analysis of the electrical
parameters.
3
IR Non-contact
Thermometer
Mastech MS6550B
For the measurement surface
temperatures.
4
IR Visual
Thermometer
Fluke VT04A
For the measurement of the wire
connection temperature and
motor temperatures.
5 Lux Meter Amprobe LM100
For the testing of the light
intensity at the working area.
6
Combustion
Analyser
Bacharach Fyrite In-Tech
For the combustion analysis of
the flue gas from the furnace.
7 Accessories -
Helmet, safety gloves, safety
shoes, equipment carry case,
torch, etc.
8 Motorcycle Honda Shine CB 125cc For field visits.
Further, the detailed energy audit equipment will be purchased in 2015/16.

Promotional Activities
Promotion is the method you use to spread the word about your product or service to
customers, stakeholders and the broader public. Once you’ve identified your target market,
you’ll have a good idea of the best way to reach them, but most businesses use a mix of
advertising, personal selling, referrals, sales promotion and public relations to promote their
products or services.
Some of the promotional activities are as follows:
 Awareness campaigning
 Develop and disseminate EE promotional material
 Publicate EE services in newspaper, FM, email, homepage, Facebook page, etc.
 EE product Presentation through manufacturers
 Consulting on EE measures
 Exhibition and placement of stalls
Awareness campaigning: The awareness campaigning aims to raise awareness of the
effect of the inefficient use of energy in industries as well and business and homes. We have
been involved in the awareness campaigning for the energy efficiency since one years and
have conducted 5 awareness campaigning.
Develop and disseminate EE promotional material: We have developed and
disseminated EE promotional materials. (Annex 2).
Publicising EE services: The EE services are being publicised every week through the
Facebook page of the organization, through the newspapers, souvenir, and Radio
broadcasting. We have planned to publicise the interview with the clients for the
effectiveness of the project (Annex 3 & 4).
EE product Presentation through manufacturers: We have organised the presentation
from the energy efficient product manufacturer and distributers to the industrialists. It is an
effective means of establishing relationship among the industrialist’s and the energy efficient
product manufacturer or distributers to adopt the energy efficient machinery and tools easily.
Consulting on EE measures: EEU BuCCI is providing the counselling services on the
energy efficiency measures to the local industrialists.
Exhibition and placement of stalls: An exhibition, in the most general sense, is an
organized presentation and display of a selection of items. We have booked a stall in the
exhibition of Siddharthanagar, Rupandehi where various new products by different industries
was displayed. It created an opportunity to directly interact with the different industries taking
part in the exhibition.

Energy Audit Service Sales activities
A sales process is an approach to selling a product or service. The sales process has been
approached from the point of view of an engineering discipline.
Energy audit service sales activities are being carried by following ways:
1. Acquisition by telephone:
2. Key Customer Visits
3. Door to door sales strategy
Acquisition by telephone: The energy audit services are being sold by calling the clients
and informing them about the energy audit services and benefits of the audit.
Key Customer Visit: The key customer visit is done to the potential clients who have the
saving potential and are willing to adopt the change. It is done by a structured way as given
below:
Sales Lead
A sales lead is the Identification data of a person or entity that has the interest, authority and
budget (i.e. money) to purchase a product or service. This step represents the first stage of
a sales process. The identification of the sales lead is referred to as lead generation, a
process conducted by either the marketing or sales organization.
Qualifying Sales Leads
The process of determining whether a sales lead has the potential to become a prospect is
known as "qualifying" the lead. In some cases, a sales lead can be qualified by the seller
prior to making first contact.
Preparing for sales Meeting
Preparing the sales meeting is the process of preparing a list of guide question for the sales
process. The salesperson will use their research skills to learn about such issues as:
Sales Lead
Qualifiying
Lead
Preparing for
sales meeting
Sales Pitch
Handling buyer
Resistance
Closing sales

• who is the key decision maker
• what is the customer’s organizational structure
• how is the energy used by the customer
• what are the possible energy saving opportunities for the customer
Sales Pitch
In selling technique, a sales pitch is a line of talk that attempts to persuade someone or
something, with a planned sales presentation strategy of a product or service designed to
initiate and close a sale of the product or service.
Handling Buyer Resistance
In most cases the resistance is expressed verbally (e.g., "I don't see how this can help us.")
but other times the resistance presents itself in a non-verbal fashion (e.g., prospect facial
expression shows puzzlement).
Example:
Q. It is too expensive?
A. I can see it is expensive but do you know how much can you save?
Closing sales
Closing the sale is the point when the seller asks the prospect to agree to make the
purchase. It is also the point at which many customers are unwilling to make a commitment
and, consequently, respond to the seller’s request by saying no. For anyone involved in
sales such rejection can be very difficult to overcome, especially if it occurs on a consistent
basis.

Performance of Energy Audits
Since the purchase of the energy audit equipments in November 2014, EEU BuCCI has
been continuously providing the services of energy audit to the clients. The EEU BuCCI is
performing the walk through energy audit. Till date we have performed 35 energy audits and
are progressing ahead. A report of the energy audit is given in Annex 5.
Figure – Report hand-out after performing Energy Audit at S.R. Steels Pvt. Ltd.
Figure – During Energy Audit at AMDA Hospital, Butwal, Nepal

Table – List of serviced clients
S.N Name of industry Address Contact Person Category
1 BuCCI Building Butwal - 8 Sanjay Gyawaly
Administrative
Building
2
Siddhivinayak Food
Products
Tikuligarah
Pusp Kamal
Wagle
Food Products
3
Nepal Blackgold and
Allied Industries
Butwal Industrial
Estate
Surendra Muni
Sakya
Plastic
4 Sun Bricks Pvt. Ltd.
Kerwani – 3,
Devdah
Ajay Man
Shrestha
Brick
5
Global Multiproducts
Pvt. Ltd.
Manigram Subarna Silwal Botteled Water
6
Agro Engineering Pvt.
Ltd.
Butwal Industrial
Estate
Vibek Pradhan Metal and Steel
7
Mahakali Plastic
Udhyog
Karahiya-8,
Bhalwari
Radheshyam
Kasaudhan
Plastic
8 Alam Plastic Udhyog
Butwal Industrial
Estate
Azaz Alam Plastic
9 Sun Fitting Pvt. Ltd.
Butwal Industrial
Estate
Maheshwor P.
Shrestha
Steel and Metal
10
Kohinoor Metal
Udhyog
Butwal Industrial
Estate
Ram Pd. Basyal Steel and Metal
11 Metal Cast Pvt. Ltd.
Butwal Industrial
Estate
Narayan Pd.
Sharma
Steel and Metal
12
Siddhababa Colour
Lab
Butwal Industrial
Estate
Krishna Kumar
Shrestha
Offset printing
13 Bullzeye Café Butwal Dinesh Shrestha Café
14 Auto Villa Butwal Dinesh Shrestha Auto services
15 Zipper Butwal Dinesh Shrestha Fancy Shop
16
Gautam Energy
Engineering
Butwal Industrial
Estate
Haribhakt Gautan Metal and Steel
17 Butwal Flour Mill Naya Gaun Anand Ojha Agro Processing

18 Jitgadhi Rice Mill Jitgadhi Dhruva Shrestha Agro Processing
19
Nawa Nepal Plastic
Udhyog
Pathardanda Kashis Shrestha Plastic
20 S. R. Steels Madhwaliya Suraj Upreti Steel and Metal
21 Sita Rice Mill Dobhan
Khum Bd.
Bhandari
Agro Processing
22
Siddhivinayak Agro
Industries
Dhakdhai Ram Thapa Agro Processing
23
DreamLand Gold
Resort
Manigram Rajesh Khanal Hotel
24
Siddharth Children
and Women Hospital
Butwal Dhruva Shrestha Hospital
25 Zipper 2 Butwal Chauraha Dinesh Shrestha Shop
26
Lumbini Engineering
College
Bhalwari College
27
Gautam Buddha
Community Heart
Hospital
Butwal Azaz Alam Hospital
28 Hari Brick Industry Srinagar Hari Mishra Brick
29 Nepal Rice Mill Dubauliya Khurshid Alam Agro Processing
30
Butwal Multiple
Campus
Butwal
Parkash Bandhu
Regmi
College
31
Lumbini Banijya
Campus
Devinagar Butwal
Dr. Iahwor
Gautam
College
32
Darcy's International
Hotel
New Buspark
Butwal
Vijay Kandel Hotel
33
Siddhartha Gautam
Buddha College
HotBazar
Bishnu Pradas
Rana
College

34
Mohini Hygiene
Products
Devdah, Bhaluhi
Arjun Man
Shrestha
Beverages
35
Butwal Technical
Institute
Butwal D.K. Thapa
Technical
Education

Staff Capacity Development
Capacity development is the process through which individuals, organizations and societies
obtain, strengthen and maintain the capabilities to set and achieve their own development
objectives over time. Capacity is about growth: growth of the individual in knowledge, skills
and experience. Human resources are central to planning, managing, and delivering the
services. Developing and maintaining a fair, equitable, and effective HRM system can
motivate staff and increase their level of job satisfaction and efficiency, which can result in
improved service quality.
Following are the main staff capacity development activities adopted by EEU BuCCI to
enhance the capacity of its staff:
 Onsite energy audit training in the presence of senior energy expert
 ISO 50001 Lead Auditor’s training on energy management
Onsite energy audit Training: We have organised onsite energy audit training in the
presence of the senior energy expert. Along with the senior energy expert Mr. Bhishma
Pandit, we have invited to join Energy Efficiency team of Chamber of Industries, Morang.
The participants from Energy Efficiency team of Chamber of Industries, Morang were
International Development Advisor Mr. Alexandre Seire and Energy Expert Mr. Wasim
Javed.
ISO 50001 Lead Auditor’s training on energy management: ISO 50001 is a new member
of international standards family, based on the common elements shared by other major ISO
management system standards, ensuring a high level of compatibility with them. It is notably
aligned with ISO 9001 quality management system and ISO 14001 environmental
management system standards. The comparison table below provides a quick overview on
the comparison between the main clauses of ISO 50001, ISO 9001 and ISO 14001.
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 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.

ISO 50001 can be implemented individually or integrated with other management system
standards.
Figure - Energy management system model
What will I learn from ISO 50001 Lead Auditor’s Training?
1. Scope, plan, manage and lead the audit team through an audit process
2. Take the lead on reporting, corrective action and continuing improvement
3. Interpret the requirements of ISO 50001 in the context of an audit
4. Manage audit communications and interviews
5. Conduct opening, closing and follow-up audit meetings
6. Share knowledge and build understanding of ISO 50001
7. Learn how to integrate ISO 50001 with other management systems
8. Gain confidence to take your auditing skills to lead auditor level
How will I benefit from ISO 50001 Lead Auditor’s Training?
1. Get lead auditing expertise
2. Be confident your energy management systems are effective
3. Be better prepared for third party audits of your organization
4. Encourage employee awareness of energy efficiency
5. Save resources by integrating ISO 50001 with other management systems
6. Conduct third party audits of client organizations

Monitoring and Evaluation
Monitoring and evaluation (M&E) is a process that helps improving performance and
achieving results. Its goal is to improve current and future management of outputs, outcomes
and impact. M&E is an embedded concept and constitutive part of every project or
programme design (“must be”). M&E is not an imposed control instrument by the donor or an
optional accessory (“nice to have”) of any project or programme. M&E is ideally understood
as dialogue on development and its progress between all stakeholders.
In general, monitoring is integral to evaluation. During an evaluation, information from
previous monitoring processes is used to understand the ways in which the project or
programme developed and stimulated change. Monitoring focuses on the measurement of
the following aspects of an intervention:
• On quantity and quality of the implemented activities (outputs: What do we do?
How do we manage our activities?)
• On processes inherent to a project or programme (outcomes: What were the
effects /changes that occurred as a result of your intervention?)
• On processes external to an intervention (impact: Which broader, long-term
effects were triggered by the implemented activities in combination with other
environmental factors?)
The evaluation process is an analysis or interpretation of the collected data which delves
deeper into the relationships between the results of the project/programme, the effects
produced by the project/programme and the overall impact of the project/programme.

Conclusion
The establishment of the Energy Efficiency Unit in BuCCI is proving the best unit established
in Rupandehi to serve the industries in reducing the energy consumption and the energy
cost leading to increased capacity of production with reduced investment.
The project is continuously promoting the energy efficiency in the industries and the
businesses. People are getting the information on the energy efficiency issues and now are
aware of the impacts of the inefficient management of the energy in coming future. Most
units (75 out of 80 or 93.7%) have reported that they are interested to join EEU activities and
95% are interested in adopting the feasible energy saving measures.
The field work by establishing the energy efficiency unit has showed the energy saving
potentials in the industries and the business around 2,000 kVA electrical demand, 3,39,000
kWh electricity, 33,380 litres of Diesel fuel, 27,300 litres of Furnace Oil and 31,14,000 MJ of
thermal energy.
I would like to conclude that the energy management and energy audit project is running
properly and is marching towards a long lasting project.

Recommendations
On the basis of the above conclusion and from the experience of the involved in the field,
ample opportunities have been observed for the improvements in the use of both electrical
as well as thermal energy in all the sectors of industries and business. For enhancing the
energy efficiency and to realize the saving potentials, the following recommendations have
been made:
Energy audits must be carried out periodically in all the industries so that
opportunities are known and understood – 75 out of 80 industries (93.75%) of the visited
for the promotion had not carried out energy audit. The managements of the industries are
not well aware of the benefits from the energy audits. Energy audits must be carried out
periodically in all the industries so that opportunities are known and understood. The
industries need to be encouraged for this. In the long run, a mandatory provision for the
energy audits in the enterprises can be imposed.
Awareness for the management as well as section chiefs – Awareness level in the
industries on energy efficiency is still low in the surveyed industries. Responsible persons
must be involved in the awareness programme so that all of them are aware and strive to
improve the efficiency. Almost all of the employees must be given short awareness
programme.
Training for the responsible members – Main persons relating to energy management
must be imparted varying duration of the training in energy efficiency. Such training
programmes can be organized by sectors. Supervisor level responsible persons including
electricians, mechanics can be given two days of EE training as to what they can do by
themselves and engineers (mechanical, chemical and electrical engineers) should be given
one week training for energy audit and improvement.
Moreover short one day trainings for specific issues can also be held; e.g. electricity load
management, boiler and steam system efficiency improvement, kiln efficiency improvement
etc.
Detailed energy audits of interested industries – Some of the interested and
committed industries in each sector of industries should be involved in detailed energy audit.
This will give a demonstration for all the other industries on the possibilities. Only highly
committed industries should be invited to apply and they also should bear part of the audit
cost so that the level of commitment for the implementation is strong. Dissemination of
successful implementation of such programmes must be carried out so that other similar
sector industries can replicate the improvements.
Focus on best practices and best available technology on energy efficiency – Apart
from the energy intensity figures for various sectors, manuals and directives or guidelines for
the best practices, Best Available Technology and tips on EE should be prepared sector-
wise, published and disseminated.
Sector-wise Manual Preparation – bench mark establishment and monitoring – For
some of the more energy intensive sectors, manual preparation will be desirable especially
for Cement, Brick Kilns and cold storage, Iron Re-rolling Mills, Sugar Mills etc.
Policy with mandatory periodic energy audits and reporting – Government policy with
regards to energy efficiency in industries will be updated and reviewed. Government should

also adopt such policies formally and these must be promoted and disseminated. Periodic
energy audit should be made mandatory at least once in two years to start with.
The reports of such audit and status of implementation should be submitted for monitoring.
Involve educational institutions for offer course on EE – Educational institutions
especially Institutes of Engineering and Technical and Vocational institutions should include
courses on EE. For this, the institutions should be provided support to develop course of
study and the instructors should be exposed for teaching of such courses.
Competition and award for improvement in EE by sector – Annual competitions on
energy efficiency implementation can be organized and award system should be initiated to
motivate industries in EE practices.
Commitment by Cost Sharing – It is also recommended that the energy audits should
not be conducted free of charge to the industries. For getting commitment, ownership and
sustainability of activities, willingness to pay must be cultivated in industries by developing
cost sharing mechanisms and the fees so collected should be given to FNCCI for their
capacity building and promotional activities.

Annex 1
The organizational structure is shown below:
Previous Organizational Structure

Current Organizational Structure

Annex 2

Annex 3

Annex 4

Annex 5
Performed at
Nawa Nepal Plastic Udhyog Pvt. Ltd.
Pathardanda, Rupandehi
26 March, 2015
The Energy Efficiency Experts
Butwal Chamber of Commerce & Industry
Rupandehi (BuCCI)
Chamber Street, Butwal-8, Rupandehi, Nepal
Tel: 071-541346, 544746, 548246
Fax: +977-71-540146
Email: butwalcci@yahoo.com
Web Site: www.bcci.org.np
Walk Through
Energy Audit
Report

Some General Definitions
Dear Customer,
Thank you very much for adopting the Walk-Through Energy Audit.
You may have some questions regarding Walk-Through Energy Audit such as what is Walk-
Through Energy Audit.
What is Walk-Through Energy Audit?
A walk through audit is a process to determine where your facility is losing energy and money -
and how such problems can be corrected to make the facility more energy efficient. This audit is
of one to two days wherein the energy auditors and the plant personnel walk around the plant,
review your bills, and takes some measurements with special equipment to assess the areas of
energy consumption.
In this audit the secondary data from the plant is collected and a general process flow diagram
is made. The results of this audit are:
What differentiates Walk-Thru Energy Audit with Detailed or Diagnostic Energy Audit?
Walk-Thru energy audit is a process of walk through analysis of the facility whereas the Detailed
or Diagnostic energy audit is a process of detailed analysis of every equipment of the facility for
its performance, process of handling and operation, and housekeeping. The walk-thru energy
audit is geared toward the identification of the potential for energy improvements, understanding
the general building configuration, and defining the type and nature of energy systems and a
short report is provided that does not provide the detailed recommendations. On the other
hands, in the detailed or diagnostic energy audit, detail measurements of all the areas from
generation to utilization are taken. All the data, primary as well as secondary, are analyzed and
recommendations are made for the whole plant.
What is the next step?
The next step may be the detailed energy audit of the facility.

General Information of the Facility
Facility Name: Nawa Nepal Plastic Udhyog Pvt. Ltd.
Address: Pathardanda, Rupandehi
Managing Director: Mr. Kashis Shrestha
Email ID: kashis_shrestha@hotmail.com Phone Number: 9857028581
Name of Facility Operator: Mr. Manoj
Title: Plant Operator
Email ID: Phone Number: 9807891702
Audit Team:
Mr. Mohammad Abul Hasan Khan Energy Auditor 9811908361 abulhasan.nep@gmail.com
Mr. Govinda Neupane Energy Auditor 9846260274 gchintaksusta@gmail.com
Mr. Bhishma Pandit Energy Expert
Mr. Alexandre Siere Energy Expert
Mr. Washim Javed Energy Auditor
Sector:
Plastic
Scale:
Medium
Employees:
1 – 20
51 – 100
21 – 50
100 +

Energy Saving Summary
Annual Savings
S.
No.
Recommendation
Potential
Electrical
Energy,
kWh
Thermal
Energy
(Diesel, FO)
Potential
Cost Savings
(NPRs)
Estimated
Investment
(NPRs)
Payback
Period
(Months)
1
Installation of APFC
with Capacitor
banks
21 kVA pm 60,619 2,00,822 40
2 Insulating the barrel 717.64 kWh 65,955.12
Total Potential Electrical
Saving
21 kVA pm
717.64 kWh
Total Thermal Energy
Saving
Total Potential Cost
Saving
1,26,574.12
Total Estimated
Investment
2,00,822
Total Payback Period 19.04

1.1 Introduction.
Nawa Plastic Udhyog Pvt. Ltd. is situated in Pathardanda, Rupandehi. The industry is engaged
in production of plastic products. Water storage tank, rope and pipes are its principal product.
All of its products are consumed in the domestic market.
Energy source to the plant is electricity supplied by NEA and Diesel power generation.
Electricity is used in the drives of plastic extruder, raw material grinder, dana machine, chiller,
compressor and lighting. HSD (High speed diesel) is used for the backup power generation
through the Diesel-Generating Set.
Walk through Energy efficiency study was conducted in the plant during March 2015. The study
focused on major energy consuming equipments or systems from the point of view of reducing
energy consumption or improving the efficiency of the said equipment or system. This report
presents the observation, analysis, findings, and the recommendations for achieving energy
savings by improving energy usage efficiency. For the purpose of analysis various applications
were studied, operations observed, relevant data were collected wherever possible.
1.2 Facility Description
The plant has an incoming 11 and 33 kV power supply line from NEA. The plant has one
distribution transformer of 500 KVA, 11/0.433 KV steps down the voltage to 433 volts which is
then distributed to different drives and auxiliaries. The plant has not installed a capacitor bank
for power factor correction. The plant has installed one Diesel generating set of 125 kVA
capacities for use during utility line power outages.
Electrical utility detail:
Data Unit Value
Transformer capacity KVA/Volts 500 kVA/433 volts
Approved load KVA 250
Maximum Demand recorded in TOD meter kVA 162
Power factor recorded 0.85
Demand charge/kVA NRs. 230
Energy consumption ( last 8 months) kWh 127800
Estimated energy generation from the DG kWh
Estimated diesel consumption by DG Liters
Weighted average cost of electricity NPRs/kWh
Observations:

 Power factor of the plant is low (0.85), need to installed the capacitor bank
with revisiting the approved load.
 Main panel and changeover area is old and mounted on the wooden panel and need to
be replaced immediately.
 Improvement in lighting system is essential.
 Voltage level of all the motors is the matched.
 Load profile of the plant is as shown below.
 Diesel generating set is operating at lower load conditions.
 Maximum Demand recorded in the NEA bill for last 8 months is as shown below:

It shows that demand never rise beyond 162 kVA. Power factor is low that gives the
indication of demand saving.
 Load sharing of peak, off-peak and normal hours is as shown below:
It clerly indicates that load management is possible for the cost reduction in electricity bill.
 Energy consumption pattern of the industry is as shown below:
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
kVA
kVA
9%
74%
17%
Time of Day Use
Peak(kWh) @ NPRs 8.50/kWh
Normal(kWh) @ NPRs 7.00/kWh
Off peak(kWh) @ NPRs 4.20/kWh

Recommendations.
1. General Recommendations
a. Turn off the machines and lights when not in use.
b. Turn off the lights in daylights.
c. Locate the work stations towards the windows where daylight is sufficient enough to
work.
d. Clean the motors as they are air cooled, they don’t transfer heat.
e. Clean the fans from the dust.
f. Clean the skylight sheets for sufficient light.
g. Sell the unused equipment.
h. It is recommended that plant personal should have Portable clamp on power
analyzer for electrical measurements.
i. Fire Extinguisher: No fire extinguishers are found around the necessary places
such as fuel tank, container heat treatment, painting area and welding area. The
energy audit team suggests keeping fire extinguishers in these areas as well.
j. Fixed the maintenance shedule during the peak hour time to optimise the electricity
cost.
k. Plan the production process to minimse the peak load operation/DG operation and
utlised offpeak time as much as possible.
2. Installation of Automatic power factor correction unit for central compensation with
revisiting the approved demand.
Present Approved load kVA 250
Transformer Capacity kVA 500
kVA recorded kVA 162
Demand Charge NPRs 230
Avg. Energy Charge NPRs 7.1
Present Power Factor Cos q 0.85
Active load Kw 137.7
New power factor Cos q 0.98
Capacitor required KVAr 57
New demand after capacitor installation kVA 141
Demand saving kVA 21
Demand Cost saving NPRs. 4943
Investment NPRs. 2,00,822
Annual Consumption( 8 months) kWh 127800
Savings in Tr. & distr. Loss kWh 127.8
Cost savings from above NPRs 907.38
Total savings NPRs 60,219

Simple payback period Years 3.3
Required size is 57 but with avialable size and safety factor needs total capacitor
size is 75 kVAr with following numbers
1 Nos. 1 kVAr
2 Nos. 2 kVAr
2 Nos. 5 kVAr
2 Nos. 10 kVAr
1 Nos. 20 kVAr
1 Nos. 25 kVAr
Can be installed in main pannel.
It is recommended to reduced the approved demand to 200 kVA with NEA, it
could enhance the demand saving more.
3. Improvement of lighting system. The energy audit was performed during night time
period. The lights that are being used are CFL type. It is recommended to turn off the
lights in utility area and area where it is not required. On the top, it is recommended to
replace the damaged lights with LED for considerable savings.
4. Operated the water pump during the offpeak time/ Do not operate the water pump during
the DG operation as much as possible.
Resuffling of the DG set will save upto 15% of the fuel.
5. Replace energy efficient motor during the new procurement of motors: Under
loaded motors operate at low efficiencies (8 to 10 %), hence optimum sizing of motor
matching to the load would result in energy savings and improved operating power
factor. Most of the motors are old, rewound and standard efficiency type. High efficiency
motors are available in 4 pole motors having 1440 rpm. However for motors of 2 pole
and 6 pole (2950 rpm, 960rpm) improved efficiency motors available (compared to old
type). Whenever downsizing of motors is opted, care must be taken to procure the motor
of lower frame size (compared to the existing motor).
The motors are working continuously for long time and are overheated. The main reason
for the overheating of the motors is the improper supply of the electricity to the motors
for its operation. The electrical parameters like current, voltage and power factor plays
an important role for determining the effectiveness of the motors working. The excessive
heat causes rapid deterioration of motor winding insulation. The common rule states that
insulation life is cut in half for every 10 °C of additional heat to the windings.
a. Clean the motors

b. Avoid the operation of the motors over the rated voltages.
c. Replace the motors with higher energy efficiency motors.
d. The belts should be tightened.
e. Replace the Vee belts with the most energy efficient belts viz. synchronous notch
belts.
f. Do not start all the motors at once.
g. Implement a motor management system.
6. Recommendations for the FO oven
The FO oven is used for heating the raw material in the mould for producing the water
storage tanks. The oven was found to be operating efficiently as per the observation of
the walk through energy audit but there was a lot of heat wastage during the
manufacturing process as the door of the oven was opened for about 7.5 minutes during
the audit period of time. The door of the oven is not sealed properly and should be
immediately closed after removing and inserting the product from it. We recommend
sealing the door properly and close the door immediately after removing and inserting
the product in the oven to reduce the loss of heat from the chamber increasing the
efficiency of the work at minimum possible energy consumption.
a. Close the door immediately and properly.
b. Seal the closing of the door so that the heat does not release for the oven.
7. Recommendations for Barrel Extruders
The barrel extruders are the main machines of the plastic manufacturing plant. The
barrel extruders have the motors and the heaters as the main sources of energy
consumption. They are operated for 14 hrs. per day for the manufacturing the plastic
products. The heaters are of capacity 500 W each, contributing 15 kW of energy
consumption by all the heaters. The heaters being used in the industry are not insulated
properly and losing the heat at higher rate minimizing the efficiency of the machine and

consumes more electricity. We recommend using the barrel insulation with
thickness 1.5 inches to reduce the heat loss from the barrel and obtain maximum
efficiency.
a. Insulate the barrel with efficient jacket to reduce the heat loss and save the energy
used for heating.
Typical calculation for potential savings using insulation blanket for barrel
Machine type 1: Dana Extruder
Parameters: Barrel length (L) = 4 ft. = 48 in.
Barrel diameter over heaters (D) = 6 in.
Operating temperature = 125
Barrel surface area:
Circumference = πD = π * 6 = 18.85 in.
Surface Area = = = 628.4 sq. ft.
Heat Losses:
 At 125 with no insulation, heat loss is 210 watts/sq. ft.; with 1 in. of ceramic fiber
insulation, heat loss is 20.9 watts/sq. ft.
 210 W/sq. ft. x 628.4 sq. ft. = 131964 Watts (Uninsulated)
 20.9 W/sq. ft. x 628.4 sq. ft. = 13133.56 Watts (Insulated)
Savings:
= {131964 Watts (Uninsulated) - 13133.56 Watts (Insulated)}/1000
= 118.83 kW
= 118.83 kWh x NPRs 9/kWh
= NPRs 1069.47 per month
= NPRs 12,833.64 per year
Machine type 2: Pipe Extruder
Circumference = πD = π * 7 = 22 in.
Surface Area = = = 1100 sq. ft.

Heat Losses:
 425 W/sq. ft. x 1100 sq. ft. = 467500 Watts (Uninsulated)
 37.2 W/sq. ft. x 1100 sq. ft. = 40920 Watts (Insulated)
Savings:
= {467500 Watts (Uninsulated) – 40920 Watts (Insulated)}/1000
= 420.58 kW
= NPRs 3,785.22 per month
Machine type 3:
Circumference = πD = π * 6 = 18.85 in.
Surface Area = = = 942.5 sq. ft.
Heat Losses:
 210 W/sq. ft. x 942.5 sq. ft. = 197925 Watts (Uninsulated)
 20.9 W/sq. ft. x 942.5 sq. ft. = 19698.25 Watts (Insulated)
Savings:
= {197925 Watts (Uninsulated) – 19698.25 Watts (Insulated)}/1000
= 178.23 kW
= NPRs 1,604.07 per month
8. Recommendations for Compressors and Compressed Air systems

There is a compressor that is operating simultaneously for several hours.
The location of the air compressor is not at a suitable place i.e. open place from where
the cool air can be taken as inlet air for the compressor and the air is supplied to a long
distance which results in the distribution losses and reduce the efficiency of the
compressor. The distribution loss directly reduces the efficiency of the compressor. We
recommend using new compressor instead of using the existing old and inefficient
compressor.
a. Take air compressor intake air from the coolest (but not air conditioned)
location.(Every 5°C reduction in intake air temperature would result in 1% reduction
in compressor power consumption)
b. Consider variable speed drive for variable load.
c. Change the oil filter regularly.
d. Periodically inspect compressor intercoolers for proper functioning.
e. Reduce air compressor discharge pressure to the lowest acceptable
setting.(Reduction of 1 kg/cm2 air pressure (8 kg/cm2 to 7 kg/cm2) would result in
9% input power savings. This will also reduce compressed air leakage rates by
10%)
f. Minimize purges, leaks, excessive pressure drops, and condensation
accumulation.(Compressed air leak from 1 mm hole size at 7 kg/cm2 pressure
would mean power loss equivalent to 0.5 kW)
g. Use drain controls instead of continuous air bleeds through the drains.
h. Replace standard v-belts with high-efficiency synchronous belts as the old v-belts
wear out.
i. Use a small air compressor when major production load is off.

Safety Issues:
1. Pannel Board: During the walk through energy audit, the main pannel board was found
to be made of wood. As wood has rapid fire catching property, it is dangerous to use the
wooden pannel in any facility. So it is recommended that change the wooden pannel
with the proper steel pannel box.

List of Equipment used:
The various equipment used for the energy audits are:
S.
No.
Equipment Yes No Description
1. Power Logger For the analysis of the electric power quality..
2. Power Quality Meter For the analysis of the electrical parameters.
3.
IR Visual
Thermometer
For the measurement of the wire connection
temperature and motor temperatures.
4.
Infrared Non-Contact
Thermometer
For the measurement of the furnace
temperature.
5. Lux Meter
For the testing of the light intensity at the
working area.
Disclaimer
This report is prepared as an account of work sponsored by the Energy Efficiency Unit BuCCI. This report makes no warranties,
express or implied, regarding the services and recommendations provided by EEU BuCCI. The recommendations may not fit in
some situations. The recommended devices may not be found in the local area market for which the client should have to find
suitable market. The report does not claim for 100% benefit to the client.

Exhibit 4: Proposed log book sample for DG Set:-
On
tim
e
Off
tim
e
k
W
kV
A
Fuel
consum
ption
k
W
h
volta
ge
Curr
ent
Mainten
ance
date and
details (
Lubrican
t)
Operat
ion
hours
Oil
pressure/e
ngine
temperatur
e
…..add
any
other
requirem
ents from
DG
Exhibit 2: NEA Bills for last 8 months
Peak
(kWh)
Normal
(kWh)
Off peak
(kWh)
Total
(kWh)
Demand
paid
Falgun 2070 466 2599 5996 9061 114.00
Baishakh 2071 635 3555 8449 12639 118.00
Jesth 1581 14148 7139 22868 148.00
Ashsar 2519 18220 19 20758 147.00
Sharwan 2731 17739 107 20577 132.00
Bhardra 2263 17443 160 19866 158.00
Ashoj 1057 13791 80 14928 162.00
Kartik 643 6267 193 7103 76.00
List of energy technology supplier (vendors)

1. Energy Efficient lights and fans
 Kashi Electrical Store
Amarpath Butwal
Phone: - 071-540298
 Premier overseas pvt ltd
Panchayan marg, 3rd floor, Kathmandu
Phone: 01-4269926,4229922,4260298
Email:premier@shardagroup.com,info@shardagroup.com
 Philips lighting
Jamal, mitra marg-110, Kathmandu
Phone: +977 01 4225187 / 4225490
Email: lightdiv@besl.com.np
 Suryodaya Urja Pvt. Ltd.
Mr. Nabin Bhujel
Dhapasi, Kathmandu
Phone: 01-4379000
Email: nabin@suryodaya.wlink.com.np
 Prism International Pvt. Ltd.
Mr. Sanjeev Sthapit
Putalisadak, Kathmandu
Phone: 9851031582
Email: sanjeev@prism.com.np
2. Capacitor banks and APFC
 Nepal Power Engineering & Fabricators
Mr. Alok Badal
Kathmandu, Nepal
Phone: 9851044351
Email: alokbadal2031@gmail.com
 Hyonjan Electrical & Fabricators
Balaju Kathmandu, Nepal
Phone: 9851075980
Email: hyonjan@gmail.com
 Powercap Capacitors Pvt. Ltd
803, Swastik Chambers,
C.S.T. Road, Chembur,
Mumbai 400 071, Maharashtra
Phone: +91-022-25224253, 25234892, 25229820
Email: sales@powercap.in
3. Variable Frequency drive

 Serve Max Engg
Shripur, Murli, Birgunj, Nepal
Phone: 9841014945
Email: Shushil_chandravanshi@yahoo.com
 Siemens Limited
130, Pandurang Budhkar Marg, Worli, Mumbai 400 018 Maharashtra
Phone: +91-022-39677000
www.siemens.co.in
 Larsen & Toubro Limited
9th Floor, Ambadeep Building, 14, Kasturba Gandhi Marg,New Delhi-110001
Phone: 1800 2094545
Email: infodesk@larsentoubro.com
4. Insulation
 Lloyd Insulation
Kolkata 6, Middleton Street,
Kolkata- 700071
Contact No: +91 033 - 22401606, 22475479, 30585201, 30585202, 30585211
Fax No: +91 033 - 22402629
E-mail: lloydkol@airtelbroadband.in
5. Furnace Burner
 Oxilon burners company
D-194, Uma Udyognagar, M.G.Road no.4,
Udyognagar,Udhna - 394210 Surat (Guj.) INDIA.
Ph. +91 261 6590305, 092279 52991, 092288 55679.
Email: sales@oxilonburners.com, www.oxilonburners.com.

Bibliography
1. Report on baseline study of selected sector industries – PACE Nepal Pvt. Ltd.
2. Planning workshop of EEU BuCCI.
3. Handbook on energy audit.
4. Performed field works – Energy audits, sales pitches, etc.
5. Sales process – Wikipedia.

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