This document summarizes an energy efficiency case study by Aspiration Cleantech Ventures for one of their automotive component manufacturing clients. Currently, the client uses kerosene to provide process heat between 85-90°C for cleaning components. Aspiration proposes installing a 186 kW heat pump to provide this heat more efficiently. Using the heat pump would save the client Rs. 6.55 crores over 10 years in fuel costs compared to continuing with kerosene. The summary outlines the client's current energy usage and costs, the technical specifications of the proposed heat pump solution, and the expected economic and environmental benefits of switching to the more efficient technology.

1. ESCO Case Study
GreenCo Forum : Chennai
Danfoss Industries
22 August 2017

2. Aspiration Cleantech Ventures 2
About Aspiration Cleantech Ventures
ASPCV
-
Clean Energy Asset Management firm
Renewable
Energy
Energy
Efficiency
E-Mobility

3. Aspiration Cleantech Ventures 3
Solar Assets – PV and Thermal
About Aspiration Cleantech Ventures
563 kWp – Mahindra Research Valley, Chengalpattu 360 kWth – Harita Seatings, Chennai

4. Aspiration Cleantech Ventures 4
About Aspiration Cleantech Ventures
Energy Efficiency Assets
Heat Pump
LED Lighting
VFDs

5. Overview
Introduction
Current Situation
Technological Innovation
Business Model Innovation
Conclusion
Aspiration Cleantech Ventures 5

6. Introduction
Aspiration Cleantech Ventures 6

7. • Client –One of the largest global Automotive component manufacturers
• Application – Industrial Process Heat
• Source replaced – SKO(Kerosene)
• Plant size: 186 kW heat delivery
• Annual Loss aversion: Rs 6.55 Crores over 10 Years
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Summary of the Case Study

8. Loss Avoided
85
94
103
114
125
138
151
166
183
201
61 62 64 66 69 71 74 77 80 83
0
50
100
150
200
250
1 2 3 4 5 6 7 8 9 10
Amount(Lakhs)
x100000
Years
Current Spend vs Proposed Spend
Current Annual Cost Proposed Annual Cost
Loss Avoided – Rs. 655 Lakhs
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9. Introduction
Particulars Requirements
1 Industrial process Automotive Components Plating and Phosphating
2 Use of process Heat Cleaning of gear casings and its components before assembling
3 End use Cleaning of oil, dust and the burs from the components
4 Process Temperature 85 – 90 °C and 70-80 °C
5 Heat pump delivery temperature 90 °C
6
Total energy required to maintain
tank operating temperatures 1,06,568 kcal per hour
7 Fuel Superior Kerosene Oil(SKO)
8
Fuel consumption to meet the
energy requirement 22.35 Litres of SKO per hour
9 Baseline Cost of fuel Rs. 7.76/Mcal(Thousand kcal)
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10. Manufacturing Process
Note : Image for representation purposes only
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11. Current Situation
THERMIC
BOILER
Pre-treatment (Phosphating)
4 process tanks
Temperature range - 80-90 °C
THERMIC
BOILER
Plating Shop
6 process tanks
Temperature range – 70-80 °C
Alkali Treatment
2 process tanks
Temperature range - 70-80 °C
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12. Technological Innovation
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13. Technical Solution - Heat Pump
Heat Pump is a device that transfers heat from a colder area to a hotter area by
using mechanical energy, as in a refrigerator.
COLD SINK
HOT SINK
Heat
Pump Q1
Q2
Q1+Q2
Heatistakeninfromtheambient
AEPL is a pioneer in using Heat Pumps for industrial applications

14. Chiller vs Heat Pump
Description Chiller Heat Pump
Process Refrigeration Cycle Refrigeration Cycle
Application Used for Process Cooling Used for Process Heating
Utilization Point Evaporator Condenser
Condensing temperature 30 ⁰C to 35 ⁰C 80 ⁰C to 90 ⁰C
Evaporating temperature 7 ⁰C to 12 ⁰C 15 ⁰C to 20 ⁰C
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15. Measurement &Verification(M&V) Plan
BOILER
Energy delivered, Q = m x Cp x ΔT
m = mass flow rate
Cp = Specific heat of water (Constant)
ΔT = Temperature difference (Tin – Tout)
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16. Business Model Innovation
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17. Business Model - ESCO
ESCO -Energy Service Company
“an organization engaged in a performance based contract with a client firm to implement measures
which reduce energy consumption and costs in a technically and financially viable manner” - Bureau of
Energy Efficiency (BEE), Ministry of Power (MOP)
Source: Information based on the report “ Developing Model ESCO Performance Contracts(EPCs)
for Industrial Projects” by Alliance for Energy Efficient Economy(AEEE), June 2014
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18. • Traditional Contracting – Price Driven
• Energy Performance Contracting(EPC) – Results Driven; Quality of
Performance
• Principle - the energy efficiency investments are paid over time by the value
of energy savings.
• ESCO – undertakes to improve energy efficiency of facility
• Contract – payments are made as per demonstrated savings
• Measurement & Verification – a methodology for verifying savings as agreed
by both parties
• Client – agrees to make payments to ESCO as per terms of the agreement
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Performance Contracting

19. • Risk Transfer(from the end user to the ESCO)
• Time Effective
• Project Financing(Funding based on cash flow, and not capital expenditure)
• Guaranteed Savings
• Expertise
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Advantages of EPC

20. • No Upfront Installation Costs for the consumer
• No performance risk for the consumer
• Consumer savings in the cost of electricity
• No Operation & Maintenance responsibilities for the consumer
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Attractiveness to the Consumer

21. Business Model - ESCO
Asset Owner
Consumer
System Integrator &
O&M Contractor
SI PAYMENTS
PERFORMANCE CONTRACT
Lenders
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22. Conclusion
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23. Aspiration Cleantech Ventures 23
Benefits
Economic
Annual Savings
Rs. 24,90,802
Environmental
Reduction in Local
pollution
374 Tons/year of Co2
offset
Technological
• Higher efficiency
technology
• Easier Monitoring
and Control

24. Questions?
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25. Thank You!!
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www.aspcv.com

26. Annexures
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27. Baseline cost calculation
Particulars Units Details
Location Plating & Alkali Shop Phosphating Shop
Fuel SKO SKO
Calorific Value kcal/litres 8,800 8,800
Fuel Consumption per hour(Measured value) Litres 13.00 9.35
Boiler Capacity kcal 10,00,00
0
4,00,
000
Boiler Utilization % 10% 20%
Boiler Efficiency % 50% 60%
Energy required per hour kcal 57,200 49,368
Cost of SKO per Litre Rs. 37 37
Cost of fuel in 1 hour Rs. 481 345.95
Cost per 1000 kcal(or Mcal) Rs. 8.41 7.01
Ratio of energy share % 54% 46%
Average Cost per 1000 kcal(or Mcal) Rs. 7.76
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28. ESCO
Standard
Services
Energy Audit
Construction
and
Installation
Measurement
&
Verification
Equipment
Maintenance
and Servicing
Other Services
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ESCO Standard Services

29. • Vendor Driven ESCOs - use their own technology/products for
implementation of energy improvement measures
• General ESCOs – Product Neutral
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Types of ESCOs

30. • Shared Savings (savings shared between the ESCO and Customer)
• Guaranteed Savings(Minimum performance assured by ESCO)
• Lease Rental Model(Similar to equipment finance)
• BOOT Model(ESCO does the design, building, financing, owning and
operating of the asset)
• BOO Model
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Models of ESCO Performance Contracts

31. ASPCV
Consumer
System Integrator
and
O&M Contractor
SI PAYMENTS
PERFORMANCE CONTRACT
Lenders
Aspiration Cleantech Ventures 31
ESCO Structure and Contracting