Energy Efficiency Policy of India WORKSHOP ON ENERGY EFFICIENCY AND IMPLEMENTING ENERGY MANAGEMENT SYSTEMS FOR INDUSTRIES 5th March,2013 K. K. Chakarvarti Energy Economist, Bureau of Energy Efficiency New Delhi (INDIA)
INTRODUCTIONIndia has made rapid strides towards economicself-reliance over the last few decades.Impressive progress has been made in the fieldsof industry, agriculture, communication, transportand other sectors necessitating growingconsumption of energy for developmental andeconomic activities. 2
INTRODUCTION (contd.)Conventional source of energy such as coal, oil and gasare scarce and exhaustible.Energy prices will rise in the long run to reflect theirrelative scarcity and high cost of exploration andextraction.Hence, all attempts need to be made expeditiously toensure the optimal use of the available resources so asto manage the viability and availability of energy useand supply.This has led the Government of India through theEnergy Conservation Act and the Bureau of EnergyEfficiency to launch several programmes. 3
THE INDIAN ENERGY CONSERVATION ACT EC Act enacted in October 2001 Become effective from 1st March 2002 Bureau of Energy Efficiency (BEE) operationalized from 1st March 2002. 2002.MISSION OF BEE Develop policy and strategies with a thrust on self regulation and market principles, within the overall framework of the EC Act with the primary objective of reducing energy intensity of the Indian economy. economy. 4
THE INDIAN ENERGY CONSERVATION ACTThe five major provisions of EC Act relate to:Designated Consumers (mainly energy intensive industries) to complywith the specific energy consumption norms for the manufactured productsand services and establishment of energy management system,Standards and Labeling of energy consuming appliances, gadgets andequipment to ensure promotion of energy efficiency of the new stocksentering the marketEnergy Conservation Building Code ensuring that new commercialbuildings constructed in the country have less electricity consumptionCreation of Institutional Set up (Bureau of Energy Efficiency) for effectivecoordination of the energy conservation efforts in the country andEstablishment of Energy Conservation Fund at Centre and States toprovide necessary financial support for energy efficiency initiatives in thecountry.Energy efficiency institutional practices and programs in India are nowmainly being guided through various voluntary and mandatoryprovisions of the Energy Conservation Act 5
Mandatory Requirements to be fulfilled by DCs` Schedule to EC Act provides list of 15 energy intensive industries and other establishments to be notified as designated consumers (DC). DCs to Appoint or designate energy managers in charge of activities for efficient use of energy and its conservation (clause 14(l)).• (Note: The minimum qualification of energy manager to be designated or appointed under clause 14(l) is the passing of certification examination, conducted by Bureau of Energy Efficiency. The following information to be provided for energy manager: – Name of the energy manager – Registration number (EA/EM No.) – Complete postal office address – Telephone and Mobile number – Email address) The information with regard to energy consumed (clause 14(a)) in Form 1 Get energy audits conducted by accredited energy auditors Implement techno-economic viable recommendations Comply with norms of specific energy consumption fixed Submit report on steps taken•
Designated Consumers -Initiatives9 energy intensive industry have been notified asdesignated consumers13 National Certification examinations for EnergyManagers and Energy Auditors have been successfullyconducted. India has now about 9993 Certified EnergyManagers, out of which 7201 are also qualified asCertified Energy Auditors4 Guidebooks have been prepared to assist energyprofessionals85 Coal fired power generating units of various sizes(110-500 MW) have been mapped. Studies haveidentified 3 million tonne of coal savings potential in 49nos. of 210 MW unitsBaseline energy audits studies have been carried out inabout 400 units of 8 energy audit industry and thermalpower units. 7
Standards and labeling- InitiativesThe National Energy Labeling Programme was launchedon 18th May, 200614 Equipment and Appliances covered under S&LProgrammeAll the refrigerators (frost free), airconditioners, distribution transformers and fluorescenttube lights that are sold in India must have a BEE Starlabel w.e.f 7th January,2010Draft standards & Labelling scheme for passenger carshave been finalised. 10
ENERGY CONSERVATION BUILDING CODE – Initiatives ECBC covering five climatic zones of India (Hot & Dry, Warm & Humid, Composite, Temperate and Cold) prepared ECBC set minimum energy efficiency standards for design and construction Mandatory Scope Covers commercial buildings Survey indicates about 306 buildings being constructed in the country are ECBC complaint 12
Case study : Fortis HospitalShalimarbagh,New Delhi• Initial energy consumption: 605 kWh/m2 yr• Building envelope – AAC blocks – Insulated roof – Double glazing and shading for windows
Case study : Fortis Hospital Base building EPI = 605 kWh/m2 per annum Envelope optimisation EPI = 593 kWh/m2 per annum Lighting optimisation EPI = 476 kWh/m2 per annum Efficient chiller EPI = 346 kWh/m2 per annum Controls for HVAC systemECBC compliant Fortis EPI = 312 kWh/m2 per annumbuilding, New Delhi
National Energy Conservation AwardsBEE coordinates this voluntary activity on behalf of Ministry of PowerDue to consistent efforts put in by BEE, scheme has become very popular amongindustries, as is evident from increasing participation level (773 nomination in 2012 incomparison to 644 nominations in 2011) 15
YEAR WISE ENERGY SAVINGS ACHIEVED BY PARTICIPATING UNITS IN MINISTRY OF POWER’S ENERGY CONSERVATION AWARD SCHEME (From 1999 to 2012) Electrical Energy Saving Furnace Oil No. of One time Coal Savings Annual Equivalent & Other Gas Savings Participating investment in Lakh Year Savings in Rs. avoided liquid fuel in Lakh cubic industrial in Million kWh Metric Crores capacity in Savings, in metres units Rs. Crores Tonnes MW Lakhs kL 2012 773 2886 1948 4177 616 2.65 25.53 4303 2011 644 2390 2201 3421 504 3.29 33.21 4085 2010 592 2138 5457 2422 357 3.41 23.42 8338 2009 558 2377 3180 2451 359 5.65 12.4 4274 2008 368 1859 2493 2216 325 1.85 3.47 15729 2007 384 1843 2923 1620 308 1.25 5.86 15379 2006 388 1135 1266 1288 245 1.19 5.17 29044 2005 343 993 1319 1327 252 2.4 7.58 13122 2004 297 763 1364 814 155 2.49 5.37 18585 2003 191 539 1071 542 103 2.21 12.65 73181 2002 174 594 691 641 122 1.7 7.4 35588 2001 157 587 659 485 90 2.21 4.79 3929 2000 120 366 630 524 100 1.327 0.64 707 1999 123 205 940 205 45 1.62 2.15 2444Total 14 18675 26142 22133 3581 33.65 149.53 228709 17 years
The President of India, Shri Pranab Mukherjee addressingat the National Energy Conservation Day function, in New Delhi on December 14, 2012
Painting Competition on Energy Conservation• Ministry of Power and Bureau of Energy Efficiency have been organizing painting competitions on energy conservation for the last 7 years for students of the 4th, 5th and 6th standards at School, State and National levels• The scheme aims at sensitizing the children towards issues of energy conservation.• The scheme is being executed in all the 28 States and 7 UTs• In the year 2012, more than 3,000,000 students participated in comparison to about 343,000 students in 2005. 19
/-Rs. 1,00,000 /- FIRST PRIZE Name : (01) K R Roshni State : Tamil Nadu
The President of India, Shri Pranab Mukherjee presented the National Painting Competition Prizes, at the National Energy Conservation Day function, in New Delhi on December 14, 2012. The Minister of State(Independent Charge) for Power, Shri Jyotiraditya Madhavrao Scindia and the Secretary, Ministry of Power, Shri P. Uma Shankar are also seen.
NMEEE – Four New Initiatives• Perform Achieve and Trade (PAT): A market based mechanism to enhance cost effec-tiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded.• Market Transformation for Energy Efficiency (MTEE): Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable• Energy Efficiency Financing Platform (EEFP): Creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings.• Framework for Energy Efficient Economic Development (FEEED): Developing fiscal instruments to promote energy efficiency
Perform, Achieve & Trade (PAT)The key goal of the PAT scheme is to mandate specificenergy efficiency improvements for the most energyintensive industries.The scheme builds on the large variation in energyintensities of different units in almost every sector,ranging from amongst the best in the world, to extremelyinefficient units as well.The energy intensity reduction target mandated for eachunit is dependent on its current efficiency : the reductiontarget is less for those who are more efficient, and ishigher for the currently less-efficient units.The design of PAT is the result of extensive consultationsover the last two years (2010-11 and 2011-12), whichhave contributed to its robustness and simplicity.
EXAMPLE- EXAMPLE- INPUT & OUTPUT FOR A TYPICAL CEMENT PLANT Coal (Indian)(1,03,339 Tons/yr ,GCV 3438 kcal/kg)Coal1 (Imported) CPP 3148 lakh KWh GRID (Exported)(6246 Tons/yr, GCV 5454 kcal/kg) (Heat Rate (19.35 LAKH kWh/YR) 3135 kcal/kWh)Furnace Oil(669 Tons/yr, GCV 10000 kcal/kg)HSD Crushing and DG SET(570 Tons/yr , GCV 8600 kcal/litre) (Heat Rate Mining 2212 kcal/kWh) 2.09 Lakh kWh (Exported)Grid Electricity (53.08 Lakh KWh) (25.12 LAKH kWh/YR) Colony, (5.1 Lakh kWh)Coal2 (Imported) Clinkerization124746 Tons/yr, GCV 6192 kcal/kg)Pet Coke (Raw Material(3316 Tons/yr, GCV 8400 kcal/kg) Processing & Crushed Limestone Pyro-processing) Iron Ore, Bauxite,Gypsum PPC (14.92LAKHTONNE/YR) Flyash, Slag, Etc Grinding OPC Clinker (0.06 Lakh Tons/yr) (VRM and (0.08 LAKH TONNE/YR) RP &BM) PSC /OTHER (2.30 LAKH TONNE/YR)Note: All values presented in the above diagram are average of annual energy consumption of 2007-08, 2008-09, 2009-10
PAT Scheme : ScopeCovers 478 designated consumers in 8 sectorsAll DCs consume about 165 million toe energyTargets given to all DCs to achieve the same within a time frame -Achievement > Target E-Scerts -Achievement < Target Purchase E-Scerts / Penalty The Energy Savings Certificates (ESCerts) so issued will be tradable on special trading platforms to be created in the two power exchanges (Indian Energy Exchange and Power Exchange India).National Target = 6.686 million toe at the end of 1st PAT Cycle ( by 2014-15)
National Energy Saving Targets under PAT (%) (2012-15)
PAT BenefitsThe direct benefit for the participatingindustries in this period is reductions ininput costs related to energy ofapproximately Rs 68000 million.Needless to add, this will significantlyenhance global competitiveness ofindustry while simultaneously reducingIndias CO2 emissions by 24 million tonsper year in 2014-15.
Energy Management“The judicious and effective use of energy tomaximize profits (minimize costs) and enhancecompetitive positions” “The strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output while holding constant or reducing total costs of producing the output from these systems”
The weight of Energy savings compared to other technologies Global CO2 emissions forecast, G.tons CO2 / year
ISO 50001: Energy Management Systems Standard- IntroductionISO 50001- the International Standard for Energy ManagementSystems (EnMS)This Draft International Standard was released in April 2010 andwas published in mid-2011.Energy Management Systems offers a comprehensive andstructured approach for energy efficiency improvement.ISO 50001: 2011(E) defines EnMS as “set of interrelated orinteracting elements to establish an energy policy and energyobjectives, and processes and procedures to achieve thoseobjectives “Applicable to any organization, whatever the size, industry orgeographical locationAn organization embracing ISO 50001 is likely to further accelerateadoption of energy efficiency practices and to continuously improveits energy performance and cost.
ISO 50001: Energy Management Systems Standard- Introduction ( contd.) Application of the standard can be tailored to fit the requirements of the organization, including degree of documentation, resources and complexity of the system This International Standard can be used for certification/registration and/or self-declaration of an organizations energy management system. The fact that its based on measurement and verification will help organization stay on track to meet their declared energy policies. Adoption of ISO 50001 by any organization will:• Reduce energy bills• Make manufacturing more sustainable• Promotes energy efficiency throughout the supply chain• Helps in meeting National GHG reduction targets
ISO 50001-EnMS Requirement ISO 50001 specifies requirements for an organization to establish, implement, maintain and improve an energy management system. Specifies energy management system (EnMS) to :• develop and implement an energy policy,• establish objectives, targets, and action plans which take into account legal requirements This International Standard specifies requirements for all factors affecting:• energy supply, uses and consumption• measurement, documentation and reporting,• design and procurement practices for energy using equipment, processes, systems, and personnel. ISO 50001 does not prescribe specific performance criteria with respect to energy
ENERGY MANAGEMENT SYSTEM MODEL FOR ISO 50001 CONTINUAL ENERGY POLICYIMPROVEMENT ENERGY PLANNINGMANAGEMENT IMPLEMENTATION REVIEW AND OPERATIONINTERNAL AUDIT CHECKING MONITORING, MEASUREMENT AND ANALYSIS CORRECTIVE AND PREVENTIVE ACTIONS
Comparison between ISO 50001, ISO 9001 and ISO 14001• ISO 50001 is in line with ISO 9001 and ISO 14001 standards that address quality management and environmental management issues.• ISO 50001 is based on the same Plan-Do-Check-Act approach of ISO 9001 and ISO 14001 and it draws extensively on the structure and content of the QMS and EMS.• Implementation of ISO 9001 means what the organization does to fulfill the customers quality requirements, and applicable regulatory requirements, while aiming to enhance customer satisfaction,• Implementation of ISO 14001 means what the organization does to minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance.• Similarly ISO 50001 implementation is expected to address what the organization does to effectively manage energy resources and performance that is relevant to global standards.
ISO 50001 in Indian Context (contd.)In order to achieve the targets, as set , the plant is required to havea strong energy management system , well defined energy policyand qualified human resource.More than 200 industrial units and other establishments havealready declared their energy policy and have certified energymanagers and energy auditors.India has now about 9993 Certified Energy Managers, out of which7201 are also qualified as Certified Energy Auditors, from theprevious 12 examinations conducted by Bureau of Energy Efficiencysince 2004.These professionally qualified energy managers and energyauditors have expertise in energy management, projectmanagement, financing and implementation of energy efficiencyprojects, and policy analysisIn view of the above , it may be relatively easier for Indian industry toadopt ISO 50001 Standard
ISO 50001Certified Establishments in India• Dahanu Thermal Power Station (2x 250 MW) (DTPS) in Maharashtra, ( Western India)• “After receiving ISO 50001, DTPS would derive numerous benefits of energy management- making better use of existing energy-consuming assets, monitoring and managing reductions in GHG emissions, managing energy use and costs, implementation of new energy-efficient technologies and management of energy resources.” -Mr. Lalit Jalan, CEO, Reliance Infrastructure Limited, India 39
ISO 50001Certified Establishments in India• IEC Gensets Limited & Core Metal Krafts Limited, based in Chandigarh (Northern India)• Vedanta Aluminium Ltd., Lanjigarh Unit in Orissa (Eastern India).• BSES Kerala Power Limited, a subsidiary of Reliance Infrastructure Limited (Southern India)• The Delhi International Airport Limited (DIAL). DIAL became the first airport operator to receive this certification.• In India, so far, more than 30 companies have got ISO- 50001 certification 40
ISO/TC 242• The next meeting of ISO/TC 242 and its Working Group Meetings to be held from 22 to 26 April 2013 at Cape Town ,South Africa.• The following documents, which are Committee Drafts (CD), are being put up by ISO for discussion during the meeting:1. ISO/CD 50002 Energy audits.2. ISO/CD 50003 Energy management system audits and auditor competency3. ISO/CD 50004 Guidance for the Implementation, Maintenance and Improvement of an EnMS4. ISO/CD 50006 Energy Baseline and Energy Performance Indicators (EnPIs) -- General Principles and Guidance5. ISO/CD 50015 Monitoring, measurement, analysis and verification of organizational energy performance
Impact of BEE ProgrammesStandards and Labelling of equipment and appliancesprogramme has created a market transformation andpromoted energy efficiency among consumersEnergy saving targets have been fixed for 8 sectors ofenergy intensive industry- 6.60 million ton of oil equivalentby 2014-15More than 200 industrial units and other establishmentshave already declared their energy management policyPromotion of ISO 50001 has been taken as one of the thrustarea of 12th Plan (2012-2017)Various activities under different schemes have resulted insavings in avoided power generation capacity of about10,836 MW during 11th Five Year Plan (2007-2012). 42
12th Plan(2012-17): Energy Savings Program• Avoided Peaking Capacity target: 12,350 MW*• Savings in BU 44.85 BU (consumer end) 60.17 BU (at bus bar)* 12th Plan baseline is the achieved energy efficiencylevels in 2011-12 (Not levels in 2006-07 as for the 11thPlan) 43
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