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Business Potential of Energy AuditingBusiness Potential of Energy Auditing
in HT/EHT Industries in Keralain HT/EHT Industries in Kerala
Presented by,
Albi Thomas Varkey
Prem Sankar C
Dhanya Alex
Shameera Shiju
Organisation
• Energy Management Centre
Srikrishna Nagar
Sreekaryam
• External Project Guide
Dr. R. Harikumar
Energy Technologist ,EMC
Contents
Introduction
Energy Auditing
Kerala Energy Scenario
EA Market analysis
Survey
Findings
Recommendations
Conclusion
INTRODUCTIONINTRODUCTION
Background Information
• Government made mandatory to conduct
energy audits once in 3 years on HT / EHT
/High Rise buildings to regulate and monitor
consumption of electrical energy by issuing a
G.O. (Rt) No. 2/2011/P.D. dated 1.1.2011.
• KSEB is suggested 20% power cut to industries
on Dec 2012. They have to reduce consumption
to 80%.
Stake holders
• EMC ( Government )
• Energy Auditing Firms{21 nos}
• Energy auditors/managers
• HT/EHT Industry
• BEE
• Equipment Manufacturers
• Financial Institutions
• KSEB/KSERC
Objectives
• Study of business potential of energy auditing
in HT/EHT industries in Kerala.
• Forecasting the energy demand of HT/EHT
industries by 2020.
• Costs benefit analysis of energy auditing in
HT/EHT industries.
• Mechanism for promoting energy auditing
• SWOT analysis of energy auditing sector
Significance of Study
• Boosting the new entrants into the market
• Identify the future business opportunities in
energy audit sector
• Fostering regional players
Limitations of Study
• Opinion of Industries are not taken in to
account due to -
–Lack of awareness of energy auditing
–Time and Geographical constraints
• This study is based on possible future scenario
Acts and Policies
• Energy Conservation Act 2001
• Government Order for Mandatory Energy
Audit for HT/EHT and High Rise Buildings
• Electricity Act 2011
• ISO 50001 Energy Management Standards
ENERGY AUDITINGENERGY AUDITING
Why Energy Conservation
• Energy loss in any industrial plant is inevitable
• Its economic and environmental impacts are high
• Level of energy efficiency a plant or process
can achieve is inversely proportionate to the
energy loss that occurs.
Why Energy Conservation in
Kerala
• High demand for Electricity in Kerala
• Failure of Monsoon in Kerala
• Relying on Load shedding , Central Power Pool
• Early stages in Renewable energy production
• Investor (Industrial) Friendly Concern
• Rising cost of power (Expected to rise further)
• 1Unit Saved equals 3Units Generated
• Transmission Loss (15.65%)
• Inefficient Electric Equipments
What is an Energy Audit?
• An 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). (Wikipedia)
Types of Energy Auditing
» Electrical Auditing
» Thermal Auditing
i) Preliminary Audit
ii) Detailed Audit
Preliminary Audit
• Establish energy consumption in the organization
• Estimate the scope for saving
• Identify the most likely (and the easiest areas for
attention
• Identify immediate (especially no-/low-cost)
improvements/ savings
• Set a ‘reference point’
• Identify areas for more detailed study/measurement
• Preliminary energy audit uses existing, or easily
obtained data
Detailed Audit
• Phase I - Pre Audit Phase
• Phase II - Audit Phase
• Phase III - Post Audit Phase
Why EA in Business
• Significant reduction in Production cost
– Through reduced electricity bills and reduced fuel
consumption
• Improved Plant Performance
• Reduced final product cost
• By a successive audit ,Industry can save 10-
20% of total consumption
Certified Energy Auditor
• By the enactment of Indian Energy
Conservation Act, 2001. it is mandatory for
the designated consumers to designate or
appoint an Energy Manager (under clause
14(l)]
• BEE has been empowered to specify the
qualification criteria and procedures for the
certification of Energy Managers and
qualifications for Accredited Energy Auditors
General Procedure for Audit
• Preliminary Site Analysis
• Measurement and Data collection
• Data analysis
• Energy-saving opportunities identified
• Pay back period is calculated
• Report Preparations
• Implementation
• Post Audit review
Successful Energy Audit
Examples
• Hindustan News Print Ltd, Kottayam – 5 MU
3.25Cr
• United Breweries Palakkad -7.57 MU -4.92 Cr
1.34 MU -0.87Cr 2.5 MU -1.62Cr
KERALA ENERGY SCENARIO
Main features of the Kerala
power system
• High dependence on Hydro Electric Projects
(29hydro ,2 thermal ,1 wind)
• Vagaries of Monsoon has resulted liability of Rs
2500.00 crore.
• About 51% of the total energy consumption is by the
subsidized categories like domestic, agricultural
categories etc
• New major hydel projects could not be developed in
the State
• Average cost of supply=5.44Rs/kWh
• Revenue Gap=Total inc- Total exp=-1934Cr
Source of Energy in Kerala
I KSEB’s own generating stations
a Hydel 8058.01 MU
b Thermal 290.70 MU
c Wind 2.03 MU
Total of I
8350.74 MU
II Independent power producers (IPP) 715.66 MU
III Captive power producers (CPP) 88.70 MU
IV Import (CGS, UI, Traders, etc.) 10555.02 MU
Net System Input Energy 18946.29 MU
Energy Consumption
Total Consumption 4167 MU implies a saving potential of 132 Cr !!!
Daily and Monthly Average
Consumption
Previous 1 year avg consumption of HT & EHT consumers (Dec2011-Dec2012)
TOTAL
Normal Total Consumption 2637.88MU
Normal Monthly Average 222.71MU
Normal Daily Average 7.42MU
Peak Total Consumption 641.99MU
Peak Monthly Average 54.19MU
Peak Daily Average 1.80MU
OffPeak Total Consumption 1334.54MU
OffPeak Monthly Average 112.28MU
OffPeak Daily Average 3.74MU
Forecasting the Energy Consumption of
HT/EHT Industries by 2020.
Recent Developments in Kerala
Power sector
• Jan -2011 – GO order for mandatory energy audit is issued
• Oct -2012 - KSEB had conducted a discussion with the
representative of the HT/EHT consumers
• Nov 2012 - Board to impose ½ hour load shedding through
11kV feeders in the morning hours and in the evening peak
hours
• Dec 2012 - Kerala State Energy Conservation Award 2012
are distributed on Energy Conservation day (35 MU -22.75
Cr)
• Jan 2013 – TOD metering for 11000 domestic connections
• Jan 2013 – KSEB tie up with startup village to start Energy
Innovation Zone
EA MARKET ANALYSIS
Classification of Energy Auditing
Firms
Region wise Auditing firms
Year of commencement of energy
audit
Human Resources
Branch Network wise
ENERGY AUDIT SURVEY
Participant Details
Awareness of saving potential of
energy auditing
Certification Status
Awareness of GO
EMC GUIDELINES
Industry Awareness
Remuneration for auditors
Interested in Domestic auditing
Rental equipments
Simulation Softwares
Conservation measures
Energy audit implementation
Energy Training
SWOT ANALYSIS
Strength
•Mandatory
•High Saving Potential (132 Cr)
•Consumer Mix
Weakness
• Lack of awareness in industry
•Unavailability of certified energy
auditors and equipments
•Complexity
•Lack of practical experience
Opportunity
•Huge Demand
•No Active Presence of
corporate companies
• Lack of competition
Threats
•High investment in tools
•Availability of low cost energy
•Small Market (0.03%)
FindingsFindings
Recommendations
Professional fee must be based on
The awareness and exposure to the detailed energy audit
study and its benefits.
 Assessment of firm’s capability in delivering the services
The quality of the energy audit services
 The success rate of the measures and reputation of the firm
 The resources deployed for the data generation and audit
Energy Service Company
• ESCO
Recommendations
• Potential financial mechanism to support
energy auditing
• Social awareness campaign for public
• Detailed workshops for industries
• Knowledge Database and Web portals to share
audit knowledge and experience
• Educational courses
Conclusion
• Energy auditing has high business potential in
Industries and domestic consumers in Kerala
• Mandatory as well as awareness of saving
potential will help to boom this sector
• This will be a future career option for many
aspirants in energy sector
• Do energy conservation for Economical and
Environmental benefits
It is never too late to practice energy
auditing and efficiency otherwise …
Year 1900
Year 2000
Year 2020
Year 1800
Year 2050
Any Questions ?
Business potential of Energy Auditing in Kerala

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Business potential of Energy Auditing in Kerala

  • 1. Business Potential of Energy AuditingBusiness Potential of Energy Auditing in HT/EHT Industries in Keralain HT/EHT Industries in Kerala Presented by, Albi Thomas Varkey Prem Sankar C Dhanya Alex Shameera Shiju
  • 2. Organisation • Energy Management Centre Srikrishna Nagar Sreekaryam • External Project Guide Dr. R. Harikumar Energy Technologist ,EMC
  • 3. Contents Introduction Energy Auditing Kerala Energy Scenario EA Market analysis Survey Findings Recommendations Conclusion
  • 5. Background Information • Government made mandatory to conduct energy audits once in 3 years on HT / EHT /High Rise buildings to regulate and monitor consumption of electrical energy by issuing a G.O. (Rt) No. 2/2011/P.D. dated 1.1.2011. • KSEB is suggested 20% power cut to industries on Dec 2012. They have to reduce consumption to 80%.
  • 6. Stake holders • EMC ( Government ) • Energy Auditing Firms{21 nos} • Energy auditors/managers • HT/EHT Industry • BEE • Equipment Manufacturers • Financial Institutions • KSEB/KSERC
  • 7. Objectives • Study of business potential of energy auditing in HT/EHT industries in Kerala. • Forecasting the energy demand of HT/EHT industries by 2020. • Costs benefit analysis of energy auditing in HT/EHT industries. • Mechanism for promoting energy auditing • SWOT analysis of energy auditing sector
  • 8. Significance of Study • Boosting the new entrants into the market • Identify the future business opportunities in energy audit sector • Fostering regional players
  • 9. Limitations of Study • Opinion of Industries are not taken in to account due to - –Lack of awareness of energy auditing –Time and Geographical constraints • This study is based on possible future scenario
  • 10. Acts and Policies • Energy Conservation Act 2001 • Government Order for Mandatory Energy Audit for HT/EHT and High Rise Buildings • Electricity Act 2011 • ISO 50001 Energy Management Standards
  • 12. Why Energy Conservation • Energy loss in any industrial plant is inevitable • Its economic and environmental impacts are high • Level of energy efficiency a plant or process can achieve is inversely proportionate to the energy loss that occurs.
  • 13. Why Energy Conservation in Kerala • High demand for Electricity in Kerala • Failure of Monsoon in Kerala • Relying on Load shedding , Central Power Pool • Early stages in Renewable energy production • Investor (Industrial) Friendly Concern • Rising cost of power (Expected to rise further) • 1Unit Saved equals 3Units Generated • Transmission Loss (15.65%) • Inefficient Electric Equipments
  • 14. What is an Energy Audit? • An 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). (Wikipedia)
  • 15. Types of Energy Auditing » Electrical Auditing » Thermal Auditing i) Preliminary Audit ii) Detailed Audit
  • 16. Preliminary Audit • Establish energy consumption in the organization • Estimate the scope for saving • Identify the most likely (and the easiest areas for attention • Identify immediate (especially no-/low-cost) improvements/ savings • Set a ‘reference point’ • Identify areas for more detailed study/measurement • Preliminary energy audit uses existing, or easily obtained data
  • 17. Detailed Audit • Phase I - Pre Audit Phase • Phase II - Audit Phase • Phase III - Post Audit Phase
  • 18. Why EA in Business • Significant reduction in Production cost – Through reduced electricity bills and reduced fuel consumption • Improved Plant Performance • Reduced final product cost • By a successive audit ,Industry can save 10- 20% of total consumption
  • 19. Certified Energy Auditor • By the enactment of Indian Energy Conservation Act, 2001. it is mandatory for the designated consumers to designate or appoint an Energy Manager (under clause 14(l)] • BEE has been empowered to specify the qualification criteria and procedures for the certification of Energy Managers and qualifications for Accredited Energy Auditors
  • 20. General Procedure for Audit • Preliminary Site Analysis • Measurement and Data collection • Data analysis • Energy-saving opportunities identified • Pay back period is calculated • Report Preparations • Implementation • Post Audit review
  • 21. Successful Energy Audit Examples • Hindustan News Print Ltd, Kottayam – 5 MU 3.25Cr • United Breweries Palakkad -7.57 MU -4.92 Cr 1.34 MU -0.87Cr 2.5 MU -1.62Cr
  • 23. Main features of the Kerala power system • High dependence on Hydro Electric Projects (29hydro ,2 thermal ,1 wind) • Vagaries of Monsoon has resulted liability of Rs 2500.00 crore. • About 51% of the total energy consumption is by the subsidized categories like domestic, agricultural categories etc • New major hydel projects could not be developed in the State • Average cost of supply=5.44Rs/kWh • Revenue Gap=Total inc- Total exp=-1934Cr
  • 24. Source of Energy in Kerala I KSEB’s own generating stations a Hydel 8058.01 MU b Thermal 290.70 MU c Wind 2.03 MU Total of I 8350.74 MU II Independent power producers (IPP) 715.66 MU III Captive power producers (CPP) 88.70 MU IV Import (CGS, UI, Traders, etc.) 10555.02 MU Net System Input Energy 18946.29 MU
  • 25. Energy Consumption Total Consumption 4167 MU implies a saving potential of 132 Cr !!!
  • 26. Daily and Monthly Average Consumption Previous 1 year avg consumption of HT & EHT consumers (Dec2011-Dec2012) TOTAL Normal Total Consumption 2637.88MU Normal Monthly Average 222.71MU Normal Daily Average 7.42MU Peak Total Consumption 641.99MU Peak Monthly Average 54.19MU Peak Daily Average 1.80MU OffPeak Total Consumption 1334.54MU OffPeak Monthly Average 112.28MU OffPeak Daily Average 3.74MU
  • 27. Forecasting the Energy Consumption of HT/EHT Industries by 2020.
  • 28. Recent Developments in Kerala Power sector • Jan -2011 – GO order for mandatory energy audit is issued • Oct -2012 - KSEB had conducted a discussion with the representative of the HT/EHT consumers • Nov 2012 - Board to impose ½ hour load shedding through 11kV feeders in the morning hours and in the evening peak hours • Dec 2012 - Kerala State Energy Conservation Award 2012 are distributed on Energy Conservation day (35 MU -22.75 Cr) • Jan 2013 – TOD metering for 11000 domestic connections • Jan 2013 – KSEB tie up with startup village to start Energy Innovation Zone
  • 30. Classification of Energy Auditing Firms
  • 32. Year of commencement of energy audit
  • 37. Awareness of saving potential of energy auditing
  • 50. Strength •Mandatory •High Saving Potential (132 Cr) •Consumer Mix Weakness • Lack of awareness in industry •Unavailability of certified energy auditors and equipments •Complexity •Lack of practical experience Opportunity •Huge Demand •No Active Presence of corporate companies • Lack of competition Threats •High investment in tools •Availability of low cost energy •Small Market (0.03%)
  • 52. Recommendations Professional fee must be based on The awareness and exposure to the detailed energy audit study and its benefits.  Assessment of firm’s capability in delivering the services The quality of the energy audit services  The success rate of the measures and reputation of the firm  The resources deployed for the data generation and audit
  • 54. Recommendations • Potential financial mechanism to support energy auditing • Social awareness campaign for public • Detailed workshops for industries • Knowledge Database and Web portals to share audit knowledge and experience • Educational courses
  • 55. Conclusion • Energy auditing has high business potential in Industries and domestic consumers in Kerala • Mandatory as well as awareness of saving potential will help to boom this sector • This will be a future career option for many aspirants in energy sector • Do energy conservation for Economical and Environmental benefits
  • 56. It is never too late to practice energy auditing and efficiency otherwise … Year 1900 Year 2000 Year 2020 Year 1800 Year 2050