This document summarizes an presentation on industrial energy efficiency approaches, technologies, and policies in India. It discusses how energy demand is projected to increase significantly in India by 2031-32 based on current trends. It outlines key approaches to improving energy efficiency in industry, including energy audits, research & development on efficient technologies, standards and labeling programs. Case studies are presented on energy audits of public buildings and replacing HVAC systems with waste heat recovery systems. India's Perform, Achieve and Trade program and National Mission on Enhanced Energy Efficiency are summarized as important policies to mandate efficiency improvements in energy-intensive industries.

1. Industrial Energy Efficiency -
Approaches, Technologies
and Policies
Girish Sethi
Senior Director
Industrial Energy Efficiency Division
TERI, New Delhi
ProSPER.Net Young Researchers School, TERI University
4 February 2015

2. Contents
 Energy use in industrial sector
 Approaches to energy efficiency improvement
 Energy efficient technologies
 Industrial Energy Efficiency Policies

3. • Primary energy supply increases from 717 (2011/12) mtoe to 1950 mtoe (2031/32); coal followed by oil remain the
two dominant energy sources
• Final energy demand rises from 549 mtoe (2011/12) to 1460 mtoe (2031/32), an increase of about 2.7 times in 20
years
• Industry sector continues to remain the major energy consumer ( 40%- 48%), and the share of transport sector
rises from 16% (2011/12) to 25% ( 2031/32)
Primary Energy Requirement
Final Energy Demand
Source: TERI’s MARKAL ModelResults
India: Energy Use Scenario – Present & Future
0
200
400
600
800
1000
1200
1400
1600
2011/12 2016/17 2021/22 2026/27 2031/32
Mtoe
Industry Transport Residential Commercial Agriculture
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2011/12 2016/17 2021/22 2026/27 2031/32
Mtoe
Coal Oil Natural Gas
Nuclear Hydro Solar
Wind Biomass based Power Waste to Energy
Geothermal Tidal Liquid Biofuel
Traditional Biomass

4. Indian Industry Sector: Projections
 Energy demand in the sector rises from 221 mtoe ( 2011/12) to 697 mtoe (2031/32), with around
60% share of coal in the RES
 The ESM reflects a saving of 12% (2031/32) and the ESA that of 17% (2031/32) in comparison
to the RES
 The ESA sees a drop in the usage of coal and petroleum fuels with gas being used as a bridge
fuel
Source: TERI’s MARKAL Model Results
0
100
200
300
400
500
600
700
800
RES ESM ESA
2031/32
Mtoe
Biomass
Grid Electrcitiy
Petroleum Products
Natural Gas
Coal

5. Energy Consumption Patterns –
Industry sector
 Large energy-intensive industries like fertiliser,
cement, pulp and paper, textiles, iron and steel,
aluminum, chlor-alkali
 Many energy intensive small scale industries like
glass, ceramics, forging, foundry, brick
 Parallel existence of newer state-of-the-art plants and
older technologically obsolete plants
 10-25% energy conservation potential depending
upon various factors

6. Approaches
 Energy audits
 RDD&D on energy efficient technological solutions
 Technology transfer
 Standards and Labeling
 Training and awareness
 Documentation of success stories

7. Approach - Unit specific studies
 Walk through energy audits
 Comprehensive energy audit
 Assessment of technology
employed and performance
 Identification of energy saving
options with techno-economic
feasibility
 Identification of technology and
services providers
 Capacity building of operators
and supervisors

8. Performance monitoring of pumps
Water flow
rate
Pump head
Pump motor
input kW

9. Thermography

10. Case Study # 1: Energy audit of municipal
water pumping installations in Accra, Ghana
 Energy audits of pump-sets installed in water
pumping installations
 Energy savings of about 18% of electricity bill
identified through adoption of measures like:
 Power factor improvement
 Replacement of inefficient pumps with new
ones
 Retrofitting of pump internals like
impellers, sleeves etc.
 Relaying of header pipe line
 Measures would result in energy saving of $ 0.6
million with an investment of $ 1.2 million
 Simple payback period is below 2 years

11. Case Study # 2: Energy audit of public
buildings in Uganda
 Large number (50) of public buildings
audited:
 Universities (6),
 Public offices (20) and
 Government hospitals (20)
 Power savings identified 1.750 MW
 Measures categorized into low cost,
medium cost and high cost options
 Total investment required $ 3.15
million

12. Maldives

13. Chilled
water out
W
H
R
S
G
Chilled
water in
Flue gas at 400 oC
Steam Inlet at 8 bar
Diesel
engine
Waste heat
recovery system
Steam based vapor
absorption chiller
Note: The vapour absorption chiller is a machine that produces chilled water by using heat such as
steam, hot water, etc. It requires very little electrical energy and uses waste heat as a driving source.
…. Contd.
Case study # 3: Replacing split AC units with
waste heat driven vapour absorption chiller in
Maldives

14. Implementation highlights:
 Utilization of DG set waste heat
 Using natural refrigerants (H2O and Li-Br), which are non-ozone
depletion substances and have zero GWP
 Replacing the split AC units of 36 TR capacity in staff rooms in one of
the resorts
 Actual investment: US $ 50, 000 (cost of VAM and waste heat recovery
boiler)
 Energy cost saving: US $ 200,000 annually (running cost of split AC
units)
 Payback period: 4 months
Case study # 3: Replacing split AC units with
vapour absorption chiller

15. Adoption of
energy-efficient
options
Process specific
technologies
Cross-cutting
options
Fuel switch
options
Recycling and use
of secondary
materials
 Iron and Steel
 cement
 Aluminum
 Fertilizer
 Small and medium scale
industries
 Motors
 Transformers
 Lighting
 Compressors
 Air conditioning
 Heat pumps
 Furnaces
 Co-generation
 Natural gas
 Biomass
 Refuse derived fuel
 Others (Resources)
Adoption of Energy Efficient Technologies

16. RDD&D projects (R&D, demonstration and
dissemination of cleaner technologies
 Identification of sectors and energy intensive processes
 Collaborate with international and domestic experts to develop and
demonstrate technologies as per local needs
 Build capacities of local experts and local service providers to disseminate the
technology

17. Conventional coal/NG
fired Pot Furnace
Recuperative Natural Gas fired
Pot Furnace
Cleaner technologies – Glass industry

18. Conventional Cupola Divided Blast Cupola
Cleaner technologies – Foundry sector

19.  Application
 Preheating of boiler feed water and precooling of process chilled
water
 Dairy, food processing, pharmaceutical, commercial buildings
 Pilot plants installed in Chandigarh (Punjab) and Anand (Gujarat)
 Benefits
 Reduction in fuel consumption in boiler and electricity in chiller
 Energy savings 30-40%
Demonstration of Electric Heat Pump (EHP)

20. Technology Transfer – Essential Knowledge Flows
Technology
suppliers
Technology
importers
Technology
transferred
Supplier firms’
engineering,
managerial
and other
technological
capabilities
Capital goods,
services & designs
Skills & know-how for
operation &
maintenance
Knowledge &
expertise behind
technology
Accumulation of
technological
capacity
New production
capacity
Flow A
Flow B
Flow C

21. Standard and Labeling Program in India –
key milestones
2001
• Energy Conservation Act
2006
• Standard and Labeling Program for various appliances
in voluntary phase
2010
• Mandatory labeling for room air conditioners, frost free
refrigerators, distribution transformers and FTL
2012
• Up gradation of minimum energy performance standard
(MEPS) for split air conditioners
2013
• Super Efficient Equipment and Appliance Deployment
Program initiated

22. Regulatory and institutional structure-
Standard and Labeling program
 Key Nodal Agency – Bureau of Energy Efficiency
 State Designated Agencies at the state level created
for implementation of the Act
 Act has the powers to
– Set minimum energy standards for, and affixing
energy – consumption labels on appliances and
equipment
– Prohibit manufacture or sale or import of
equipment and appliances that do not meet
standards
– Ensure display of energy performance labels on
equipment and appliances

23. Institutional structure – other important
stakeholders
 BIS – National Standards Body
– Formulation and Implementation of National
Standards
– Production certification, Quality system certification,
EMS certification etc.
 Laboratories accredited by National Accreditation
Board of Laboratories
 Educational institutions
 Manufacturers and manufacturing associations
 Consumer organizations
 Ministries and departments

24. Products covered under Indian S&L Program
Launched on 18th May
2006 , for 4 products by
BEE
Appliances under mandatory labeling
- Room air conditioners (split and window), Distribution
transformer, TFL and Frost free Refrigerators
Appliances under voluntary labeling
- Room air conditioners (Cassette, Tower), Direct cool
Refrigerators, Induction motors, Agricultural pump set,
ceiling fan, Electric Geysers, Color TV, Washing
machines, Computers ( Notebook/Laptop), Ballast,
Office equipment (Printer, copier, scanner), Gas
stoves, Diesel based pump sets, DG sets
Future Equipment for S & L program
- Vehicles, Boilers, Industrial fans & blowers,
compressors, Commercial freezers, kerosene stoves,
Heat pumps, Uninterrupted power supply (Total – 27
appliances by end of 12th plan)
Source: 12th five year plan report, planning commission of India
Bureau of Energy Efficiency

25. National Mission on Enhanced Energy
Efficiency
 The National Action Plan on Climate Change was released by Prime Minister
of India in June 2008
 The Action Plan Outlines 8 Missions including National Mission for
Enhanced Energy Efficiency (NMEEE)
 The basic objective of the NMEEE mission is to ensure a sustainable growth
by an approximate mix of 4 E’s, namely-Energy, Efficiency, Equity and
Environment

26. Fiscal
Instrument
for EE
PRGF
VCF
Public Procurement
Stimulate
Funding
for
ESCOs
Energy Efficient
Appliances
SEEP
DSM
Energy Intensive
Industries
Targets for Mandatory
Energy Saving
NMEEE – Four New Initiatives
PAT EEFP
FEEEDMTEE
NMEEE

27. Perform Achieve and Trade (PAT)
 The key goal of the PAT scheme under NMEEE, is to mandate
specific energy efficiency improvements.
 These units consume about 165 million ton of oil equivalent
energy, which is 50% of energy used in the Industrial sector in
India
 By the end of the first PAT Phase-1 (2012-15), the energy
savings of 6.686 million ton of oil equivalent /year is expected to
be achieved.
 The energy intensity reduction target mandated for each unit is
dependent on its current efficiency

28. Elements of PAT
 Incentivization and trading of excess savings
- Energy Saving Certificates ( equivalent to1 toe) issued for savings in
excess of target ;
- Certificates can be traded with other designated consumers who can
utilize them to show compliance
- Certificates can be banked for one more cycle
- Trading platform on the two power exchanges (IEX & PXIL)
 Penalty for Non-Compliance
- Quantum of non compliance is deficiency in meeting target at the end
of the cycle
- Penalty is the energy cost of quantum of non-compliance
- Quantum of non-compliance is provided in verification report and
penalty is adjudicated by the State Electricity Regulatory Commission
- Converted energy cost is Rs 10,154 per toe (2011-12)
shall be periodically updated

29. Documentation and awareness generation
 Process documentation for policy makers and funding organisations
 Dos and don’ts for industry
 Sharing of best practices through newsletters like SAMEEEKSHA
 Video films on energy efficient technologies and best operating
practices
 Hands-on training programs for operators and supervisors

30. Thank You
E-mail: girishs@teri.res.in
Web: www.teriin.org