This document provides an overview of energy efficiency opportunities in the steel rolling sector in Nepal. It discusses the current state of 14 rolling mill units in Nepal, including their electricity and fuel costs which account for around 3.24% of total costs. Potential areas for energy savings are identified, such as waste heat recovery systems, improving furnace designs and insulation, installing variable frequency drives, and replacing motors. The document presents two case studies of mills that implemented energy efficiency measures, such as minimizing gate opening times to reduce fuel consumption and installing an air pre-heater to capture waste heat, resulting in annual fuel savings of over Rs. 760,000 with a payback period of just 0.6 years. Motor replacement projects also achieved

1. Bhishma Pandit
Energy Efficiency expert/ GIZ/Integration/FNCCI/EEC

2. Energy Efficiency in Steel Rolling
Sector: Overview/Concern

3. Contents
Sector overview
Electricity & Fuel cost
Potential area of saving in rolling
mill sector
Nepalese best practice
Cases

4. Overview as per baseline
14 rolling mill units are operating.
Average installed capacity of iron
and steel plant is 113 TPD and
average production is 63.7 TPD
All units have their captive plant
(DG sets) .- Total capacity is 12976
kVA
Out of total turnover energy cost is
3.24%

5. Overview as per baseline
Thermal Energy consumption =
1470 GJ = 41 liter/ton
(ESPS – 41-55 liter/ton)
As per base line specific Electricity
consumption per MT- 149.17 kWh
Out of which 120.7 kWh from
GRID and 28.47 from DG
6.17%- saving in electricity and
22.97% thermal saving

6. Overview
Billets are importing from India
Some plants have scarab melting
induction furnace
Coal, Furnace oil and Diesel are using as
thermal energy
NEA, Grid Connected with 66 kV ,33 kV
and 11 kV with TOD metering and captive
plants are source of electricity

7. NEA TARIFF RATES
Consumer
Category &
Supply
Level
Monthly
Demand
Charge
(Rs./kVA )
Energy Charge (Rs./unit)
Peak Time O -Peakff Normal
18:00-23:00 23:00-6:00 6:00 - 18:00
High Voltage (66 kV and Above)
Industrial 175.00 Rs. 5.20 3.15 4.55
Medium Voltage (33 kV)
Industrial 190.00 6.55 4.00 5.75
Medium Voltage (11 kV)
Industrial 190.00 6.70 4.10 5.85

8. Fuel cost
Diesel cost – Rs.89/liter
FO- Rs.55/liter
Coal – Rs. 22000/ton

9. Potential Areas of Energy
Saving
Furnace – Waste heat recovery
system(installing metallic recuperator),
Furnace design, insulation, Burner – air
fuel ratio, tips LAP, pusher length, Zone
optimization, temperature optimization,
thermostat calibration
Pulverize Coal fired furnace- Ball mill and
roller mill
Electrical – load management,
maintenance scheduling
VFD application, Coupling, Reactive
power compensation

10. Potential Area of saving
Variable Frequency drive for
combustion air blower
Producer gas based reheating
furnace
Efficient oil burners
Regenerative burners
Complete change of furnace line
Antifriction bearing for rollers

11. Case

12. 1.Gate opening
Minimization of gate opening fuel
consumption has been decreased
from 50 liter/Ton – 48 liter/ton

13. Ambient Air Being Sucked in at
the Blower and Sent to the
Burner
45 o
C Air Being Supplied to the
Burner for Combustion
2.APH with waste heat from furnace

14. Furnace
Cold Air Inlet
Heated Air to
BurnerBillets
Billet Discharge Door
Burner
Chimney
Hot Gas to Recuperator

15. ENERGY AND COST SAVINGS
Project Implementation Cost
(NRs.)
330,000
Annual FO Savings (Liters) 34,853
Annual Fuel Cost Savings
(NRs.)
760,826
Simple Payback period (Years) 0.6
ENVIROMENTAL BENIFITS
CO2 emission reduction 100.6 Tons
SO2 emission reduction 0.856 Tons

16. Motor Replacement
Parameter STD EE STD EE
Rated kW 11 9.3 15 15
Measured kW 6.5 6.5 12 12
opearing efficiency 85 92 88 92
Operating losses kW 1.1 0.63 1.54 1.03
Difference in losses
kW 0.47 0.51
Annual Operating
hours 6000 6000
Saving in kWh 2820 3060
Unit cost Rs/kWh 5.5 5.5
Cost Saving 15510 16830
Payback 2 years 2 Years

17. Thank you