Among various inputs to production costs, energy is important. Its efficiency or inefficiency affects competitiveness. Energy efficiency reduces costs and improves energy economics. Renewable energy and load shifting can improve energy efficiency. Blockchain applications can help increase use of renewable energy and facilitate peer-to-peer energy trading, improving energy economics.

1. Energy (in) efficiency for Energy & Environment Management
Dr YP Chawla Visiting Faculty Bhartiya Vidyapeeth Institute of Management
and Research ( BVIMR) a Deemed to be University, Ex Advisor, Jt.
Electricity Regulatory Commission.
ypchawla@gmail.com; +91-98107-08707
Abstract: Amongst various inputs to the cost of production, Energy is an important part. Its
efficiency or inefficiency makes the enterprise competitive or otherwise. The Cost of Energy as
an external input has so far generally been outside the control of a manufacturing organization
not owning a captive power plant. The internal factors that contribute to the higher energy
consumption are in its equipment and manufacturing processes involved. The passive plant
managers offload the problem of inefficiencies to external consultants while the proactive
managers get involved in the process of making the plant energy
efficient themselves or through their team. The reduced cost of
energy input has now been possible by generation through the
distributed energy resources-Solar or the Wind or a compelling
couple of the Solar and Wind together. If the surplus Power
Generated through renewable sources(RE) is available for the
sales to the other users (Industry in this case), and the block chain technology combined with
IoT in the energy sector helps in the electricity purchases and its settlement by connecting non-
utility end users (or possibly prosumers) rather than sourcing it from licensed distribution
companies (Discoms). The energy inefficiency as Transmission and Distribution Losses (T&D)
are external to the Industrial set up can be offset by the local generation through Renewable
Energy or bought from the third party generating surplus REpower for sale to the third party.
Battery Storage System(BSS) associated with Renewable Energy can help meet the peak
power requirements of the manufacturing process. The demand shift of the power load can also
improve the inefficient utilization of non-peak power.
Virtual Net Metering as is allowed by the proactive Joint Electricity Regulatory Commission for
Goa and Union Territories makes way for the Solar Power Generation away from the point of
Consumption. Community Solar Farms can help to sell the surplus power to the Industry during
the peak power consumption period. BSS makes it flexible to allow storage consumption at the
time it is needed or costliest the most if sourced from licensed Discoms. The Industry drawing
power at High voltage while using a chunk of the same at LT takes advantage of Distributed
Power Generation stepped up only to LT level again adding to Energy Efficiency. The
distributed energy sources and block chain of energy creates opportunities for T&D reduction
while posing the regulatory challenging.
Key Words: Energy (in) efficiency, Block chain in Renewable Energy, Management of
Environment, Internet of Things (IoT), Demand Shift, Battery Storage System (BSS),
Virtual Net Metering, Regulatory measures, Skills in Block Chain.
1 INTRODUCTION:
The Energy efficiency is the removal of inefficiencies in the use of energy that goes into the
running the plant and equipment and the manufacturing process. Identifying the elements of
equipment that make the plant energy inefficient are easy to detect. Removing the ineffective
Figure 1 Source :
https://www.surveymonkey.com

2. nodes is easier while retrofitting the equipment for making the equipment energy-efficient than
retrofitting the complete chain of equipment. Buying new energy-efficient equipment is a new
ball game. The ultimate objective is to make the system energy efficient. However, at what cost
is the point of debate. What is the Return on Investment (RoI) on making the system removed
from inefficiencies to an efficient state? The energy efficiency adoption may have a different
reason for the Industry or a commercial establishment and country as a whole. While the
commercial and industrial segment has the objective of improving the bottom line and the
Country has to meet the goals of global warming. Energy Efficiency is the recipe for all-round
success. The Power Generator improves on lowering the heat rate, transmission company
helps in reducing interstate, and intrastate losses and the Licensed Discoms also endeavour to
reduce AT&C losses. The Commercial and Industry make the efforts to reduce the cost of
energy input by Power usage at non-peak hour rates or lower tariff renewable energy or the
reduction of energy input. The Internet of Things, Block chain concepts applicable for Energy
come handy in getting Renewable Power from Renewable Energy Company ( RESCO) or other
Prosumers having surplus power.
ENERGY EFFICIENCY: The European Union (EU) has set up an Energy and Environment
framework referred to as 20-20-20 targets to be achieved by the year 20201
. The 20-20-20
targets are:
1. 20% reduction from 1990 levels in Greenhouse Gases (GHG)
2. 20% contribution by Renewable Energy including 10% usage in the transport sector
3. 20% reduction from the baseline scenario in primary energy consumption via energy
efficiency.
2 INEFFICIENT INDUSTRIES IN INDIA
GoI has also focussed on energy efficiency on a few large energy-intensive industries with
targets defined for each specific plant in various industry sectors. The select list is as under:
Sector Baseline energy consumption norms and
standards in metric tonne of oil equivalent per
unit of equivalent product for the baseline year
Energy consumption
norms and standards
in metric tonne of oil
equivalent per unit of
equivalent product for
the target year 2021-
22.
Specific energy
consumption (Tonne of oil
equivalent per Tonne of
equivalent product)
Equivalent Major
Product Output
(Tonne)
Specific energy
consumption (Tonne of
oil equivalent per
Tonne of equivalent
product)
Railways Targets to be specified by GoI
Discom Losses by India’s power retailers are set to rise, reversing twoDiscoms
1 Gonzalo Sáenz de Miera and Miguel Ángel Muñoz Rodríguez, EU Policies and Regulation on CO2, Renewables
and Energy Efficiency: A Critical Assessment of Recent Experiences

3. Refinery years of declines they enjoyed.
Combined losses by state distributors that signed up for the federal
government's reform plan in the first nine months of the fiscal year 2018
rose to about 240 billion rupees ($3.4 billion), a 62 per cent jump from a
year earlier, amid an increase in coal & power costs.
Ref :
//economictimes.indiatimes.com/articleshow/69111440.cms?from=mdr&u
tm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Aluminium
Vedanta Limited,
Jharsuguda, Smelter
II, SEZ Unit
3.52 351314 3.31
Ordinary Portland
Cement
Kalburgi Cement P
Ltd Karnataka
0.0800
For other Cement Units, it
varies up to 0.1456
2493878.71 0.0765
Pozzolana Portland
Cement
Emami Cement
Limited, Chattisgarh
0.0668
For other Cement Units, it
ranges up to 0.1344
3723183.220 0.0642
Chlor Alkali
Lords Chloro Alkali
Limited, Rajasthan
0.3016
For other Chlor Alkali Units,
it varies up to 0.9295
43047 0.2836
Iron and Steel
Tata Steel Limited,
Jajpur Odisha
0.7015
For Spong Iron to other
Steel Units, the range is
0.4419 to 0.8574
2529871 0.6596
0.3906
SAIL Chandrapur
Salem Steel 0.1624
56970 0.3673
Recycled Cellulose
fiber-based Pulp &
Paper
N R Agarwal
Industries Gujarat
0.3099
For other Units, the range is
0.2728 to .5470
0.4419 to 0.8574
93644 0.2952
Imported Pulp
Tamil Nadu
Newsprint and
Papers Limited, Tamil
Nadu
0.3991
For Seshasayee TN 0.4407
141851 0.3761
Wood and Agro-
Based Industry
K R Pulp and Papers
Limited, UP
0.7541 78288 0.7091

4. Textiles
Ravali Spinners
Private Limited, AP
0.4483
For others Units 0.444-
5.2106
11887 0.4215
Thermal Power
Plants
Net Heat Rate (Kilo Calorie
per Kilo Watt Hour)
Net Product
Output (Million
Kilo Watt Hour)
Net Heat Rate (Kilo
Calorie per Kilo Watt
Hour)
GMR
2451.54
For others, it varies from
2556.41 to 2835.49
966 2421.33
Hotels- Commercial
Category
Baseline energy consumption norms and
standards in metric tonne of oil equivalent per
1000 square meter of area
Energy consumption
norms and standards
in metric tonne of oil
equivalent per 1000
square meter of area
Specific energy
consumption (Tonne
of oil equivalent per
1000 Sq mtr
Area Sq M Target Specific energy
Consumption (Tonne
of oil equivalent per
1000 square meter)
The Orchid Hotel
Mumbai Vile Mumbai,
Maharashtra
17.73
For others like ITC,
Hyatt, Rambagh,
Vivanta, Jaypee, Le
Meridian, Lalit,
Radisson, Leela,
Sangri La, Westin,
Holiday Inn, Taj,
Novotel, Zuri Etc.
18.23 to 72.75
34251 17.13
As per GoI notification New Delhi, the 29th March 2019 S.O. 1473(E) of MoP
The Energy Efficiency coupled with the Energy
Price leads to Energy Economics in the
production process or the showroom attraction,
accordingly, the intensity of the energy helps
energy intensity helps us to analyze the
changes over some time across the globe. The
enhanced energy efficiency appears to have
followed the energy efficiency improvements for
the specific process partly led by prices and not
the structural changes (Metcalf, 2008), thus
brought in the concept of energy economics.
Ref: https://www.uday.gov.in/atc_india.php
Going beyond the manufacturing process or brightening the showroom, the Discoms also have
the Energy Efficiency (T&D) for their transformers and the system.

5. The AT&C Losses of erstwhile combined J&K is 49.76%, and that of Kerala is ~10%.
These losses of Discoms are to be paid by all the Consumers, including Commercial & Industry
that makes the tariff high. The Energy Efficiency by Discoms is a painfully slow process. The
T&D is also involved in the Industry own Transformer or the Transmission system leading to the
Transformer, which also may need attention for energy efficiency.
Energy productivity specifying the economic output per unit of input energy, which is reciprocal
of energy intensity comes handy with more positive connotation than energy intensity goes
beyond energy efficiency portraying grander ambition (Bean, 2014).
3 POWER OF THE POWER MARKET
The Power of the Power Market has reshaped the
world economic growth and has been a regulated
market with signs of getting unregulated in the EU.
The EU takes Energy Efficiency as one of the top
agenda and has proposed five alternatives to rein
in the energy efficiency across the EU as under:
Figure 2 Main regulatory instruments for improving energy efficiency Source
Figure 2 Main
regulatory instruments
for improving energy
efficiency Source
envisaged in the EU
Thus the costs of Power
are bound to increase.
Bureau of Energy in
India has also been
working on similarly to
encourage equity
investment in EE
projects; BEE has institutionalized VCFEE in India. Venture Capital Fund for Energy Efficiency
(VCFEE) is a fund to provide equity capital for energy efficiency projects. The Fund shall give
last-mile equity support to specific energy efficiency projects.

6. 4 COST OF POWER AS INPUT: The National Average Power Purchase Cost ( APPC) in India
for the FY 2018-19 is INR 3.60/kWh which has been steadily increasing from INR 3.40 to INR
3.48/ kWh for FYs 2016-17 & 2017-18 ( CERC http://www.cercind.gov.in/2019/orders/05-SM-
2019.pdf).
The cost of conventional Power input is on the increase if part of it can be replaced by
Renewable Energy to the extent possible, by own generation or sourcing it from others, which
may involve block chain concept of energy exchange which will improve the energy productivity
in terms of the energy productivity or economics.
The Europeans are now looking for off sourcing their business to Asia after their success in
China. Cost of Power is one crucial ingredient. Thus mixing renewable power with conventional
power to reduce the average cost of power input is vital to improve electricity economics. The
block chain comes handy in sourcing RE.
5 LOAD SHIFT FOR IMPROVING ENERGY ECONOMICS Improving the energy
economics the load shift or Power consumption during peak load periods times during the
day when demand for electricity is high and the price expensive – is shifted to periods with
lower market power demand and lower prices. In contrast to load shedding, load shifting does
not result in less electricity consumption than initially planned. As a flexible control measure,
load shifting is mostly found in industrial processes. Primarily, it refers to scaling load up or
down according to external pricing signals. By shifting the load, the load profiles of electricity
consumers often align with volatile power production at renewable energy plants: the low
production costs of these assets (wind power, photovoltaic) cause lower prices on the
electricity exchange.
Load shifting can significantly improve electricity economics. For the load shifting to be
undertaken properly, certain conditions should be met to allow for flexible consumption. The
following processes make good use of load shifting
Grinding or pressing processes, Large compressors (such as air) or feed pumps (such as
water), Thermal or mechanical treatment/processing of materials, Flexible, intermediate, or
final material storage, Refrigeration, heating, or drying processes, Data centres, Energy
management or control systems for process control
Methods of introducing in demand response efforts include offering time-based rates such as
time-of-use pricing, critical peak pricing, variable peak pricing, real-time pricing, and significant
peak rebates and introducing the RE inputs involves the Block chain of energy.
6 RENEWABLE ENERGY FOR ELECTRICITY ECONOMICS The Renewable energy with
falling costs sourced from various sources require a BLOCKCHAIN IN ENERGY requiring a
comprehensive classification of blockchain-enabled applications across diverse sectors such
as supply chain, business, healthcare, IoT, privacy, and data management. Establishing the
key themes, trends and emerging areas for Block chain, Distributed ledger, Energy
decentralization and Peer-to-peer energy trading etc.

7. For Solar roof Tops, Solar Canopies over the Parking lot, Virtual net metering are the
concepts. If the Solar Power is so economical (Solar 80% down from 2009, Wind 40% down
– International Renewable Energy) why we see tons of projects all over, It is not technological,
but the issue is financial one said Hasting-Simon Director of Business Renewables- Canada.
The implementation of block chain technology in oil and gas trading has already lowered the
costs associated with the maintenance of various trading systems. Furthermore, block chain
also reduces costs related to labour, data management, data visibility, settlement delays, and
inter-system communication. An enterprise block chain company recently completed a pilot
project with ENI, BP, and Wein Energie. The pilot demonstrated that the use of block chain
technology to facilitate and track gas trades reduced overall costs by 30–40%.
The U.S. Senate is set to take another look at block chain technology, including the
cybersecurity possibilities of such technologies for the industrial applications.
The blockchain covers the broad spectrum under its microgrid.
Figure 3- Block chain-based cyber and physical system to enable interaction between different
stakeholders in a micro-grid2
The potential applications of block chain in the energy sector are far-reaching and may have an
enormous impact both in terms of processes as well as platforms (Bilal et al., 2014). For
example, block chain may reduce costs and enable new business models and marketplaces,
can better manage complexity, data security, and ownership along grids, can engage
prosumers in the energy market acting as enabler for the creation of energy communities
(Mengelkamp et al., 2018; Wu et al., 2017; Danzi et al., 2017), can enhance the transparency
and trust of the energy market system, can guarantee accountability while preserving privacy
requirements, can enhance direct peer-to-peer trading to support the smooth operation of the
power grid, and can better handle demand response and provide a framework for more efficient
utility billing processes and transactive energy operations (Deutsche Energie-Agentur GmbH,
2
. Source Xiaonan Wang, Wentao Yang, Sana Noor, Chang Chen, Miao Guo, Koen H Van Dam, 2018, Blockchain-
based smart contract for energy demand management.

8. 2016; Ioannis et al., 2017; Price water house Coopers and Wirtschaftsprungsgesellschaft, 2017;
Energy Web Foundation, 2018; Kyriakarakos and Papadakis, 2018). Blockchain technology
may also be used for issuing certificates of origin, particularly for green energy production and
renewable energy sources (Castellanos et al., 2017; Tanaka et al., 2017; Hou et al., 2018; Park
et al., 2018; Patil et al., 2018), for developing peer-to-peer energy transactions schemes (Cheng
et al., 2017; Imbault et al., 2017; Mylrea and Gourisetti, 2017a; Mylrea and Gourisetti, 2017b;
Sikorski et al., 2017; Pop et al., 2018) . Huang et al., 2018). It is also worth mentioning that
block chain is considered an enabler for the decarbonisation of the energy sector, facilitating its
move towards more decentralized energy sources (World Energy Council and
PricewaterhouseCoopers, 2018).
7 CONCLUSIONS We believe that energy efficiency ( now energy economics) is the key vector
and that it should continue to be the main commitment in the field of energy, economic growth
is trying to reach USD 5 Trillion that is highly dependent on energy and lacking in new
resources. From the regulatory perspective, it is a complex issue, but it is crucial to attaining
goals effectively
Together with a suitable framework for taxation, empirical evidence gathered in countries that
have achieved significant improvements in energy efficiency ( energy economics) points
towards the appropriateness of using a combination of additional measures progress towards
energy efficiency ( energy economics)is hindered not by price but by problems linked to
information. This could be the case of the residential sector, where labeling, standards,
information and awareness campaigns, are widely used measures which have proven in the
past to be effective in achieving savings.
In this new economic, competitive world, India, to uphold its commitment to environmentally
sustainable energy development, it needs to find ways to reach targets more efficiently, without
jeopardizing the competitiveness of its economy.
It is not just that the price of energy products should cover all costs incurred, including
environmental costs, but also that the price system needs to be sufficiently advanced to allow
for price signals that can be differentiated in time, taking into account the situation of the market
and usage of IoT, block chain, AI etc.
Lead has to be taken Research Development and Innovation (R&D&I). Innovation includes
innovative methods and concepts.
Industry Voluntary agreements, Standards and norms (not previously compulsory), Labeling,
Training, skill developments and awareness measures have to go on hand in hand.
We have to look at Energy Economics that is beyond the Energy Efficiency.
Disclaimer: The views above are of the Author and do not subscribe the views of any of the
organization mentioned above.