Dr. Binoy K Choudhury

Indian Institute of Social Welfare & Business Management (IISWBM)

Conference on

Low Carbon Energy for Development: Past Experiences and Future Challenges

Loughborough University, UK

Low Carbon Energy Use in SMEs and Larger Industrial Establishments : Some Cases From India

SECTORAL SHARE OF COMMERCIAL ENERGY CONSUMPTION IN INDIA (MTOE) (2007-08)

TOTAL = 272.4 MTOE

INDIAN ENERGY USE

Coal, oil and natural gas together account for more than 95% of India’s primary energy supply (excluding biomass), whereas the share of hydro, nuclear, and other renewables is less than 5%.

India – Potential for various Renewable Energy Technologies by 2020

Sources/System Approximate Potential

Biogas plants (in millions) 12

Improved woodstoves in millions) 120

Biomass (MW) 61,000 - 123,000

Solar Energy (MW/kM2 ) 20 (50,000 MW)

Wind Energy (MW) 45,000 (on shore)

Small Hydropower (MW) 10000

Ocean Energy (MW) 50000

Of the total potential of 183,000 MW, installed capacity of grid-interactive & off-grid power by March 2011 was 20492 MW, amounting to only 11.2%

[RE Potential > Overall Total Installed Capacity]

GHG Emissions Distribution (MT CO2-eq) Across Sectors (2007)

TOTAL = 1398.7 CO2 eq

INDIAN ENERGY SAVING POTENTIAL

A recent study by the World Resources Institute (WRI) India’s

energy demand is expected to become more than double by

2030. The country is consequently in need of a huge amount of

new power generation capacity. Considering the figures of the

WRI, the cheapest generating capacity for India will no doubt

be energy savings. The savings potential is estimated to vary

from 20% to 50%.

ENERGY USAGES & LOSSES

Energy LossesEnergy Losses

Causes of Losses– Supply chain Management (handling and storage) – In-efficiency of Conversion

• Technology• Maintenance Practice

– End Use In-efficiency • Lack of New

Technologies• Lack of Energy Modesty

Causes of Losses– Supply chain Management (handling and storage) – In-efficiency of Conversion

• Technology• Maintenance Practice

– End Use In-efficiency • Lack of New

Technologies• Lack of Energy Modesty

Energy LossesEnergy Losses

Energy LossesEnergy Losses

Interdisciplinary Issues• Administration• Policy• Tariff, Cost Control• Alternative Fuel• Renewable• CDM

• Energy Certification

Interdisciplinary Issues• Administration• Policy• Tariff, Cost Control• Alternative Fuel• Renewable• CDM

• Energy Certification

Ministries/Depts Involved

• Planning Commission

• Power

• Petroleum & Nat. Gas

• Coal

• MNRE

• Dept of Atomic Energy

BENEFITS OF ENERGY CONSERVATION

Investment - Only a third compared with Capacity Addition

Low Carbon Option (as Burning of Fuel is not Required)

Savings of Foreign Exchange as India Imports about 34% of the total Energy Resources Used

Social Issues (Earth with Resources are Borrowed from Future Generation)

Environmental Issues (reduces pollutant emissions)

National Energy Security Option

Investment - Only a third compared with Capacity Addition

Low Carbon Option (as Burning of Fuel is not Required)

Savings of Foreign Exchange as India Imports about 34% of the total Energy Resources Used

Social Issues (Earth with Resources are Borrowed from Future Generation)

Environmental Issues (reduces pollutant emissions)

National Energy Security Option

ENERGY CONSERVATION MEASURES

CASE 1 : Supply Chain Management Control - Carpet Loss & Rain Water Protection

•One of the Leading Electricity Supply Company Could Reduce the Maintenance Cost in the CHP by Constructing Rain-water Shed to the Tune of GBP 3 million/year Besides Efficiency Improvement of the System.

•Total Investment was GBP 3 million (One Time) Only.

•Thus the Pay-back Period Is Around One Year.

ENERGY CONSERVATION MEASURES

CASE 2 : (Process) Energy Efficiency - Air Infiltration – Excess Air Issue : At BANDEL THERMAL POWER STATION

T/hr 198.80CN.A HOT RE T/hr 143

Kg/cm2 N.A HOT RE 0C497

HOT RE Kg/cm2 19.7

COLD RE T/hr 143

COLD RE 0C380

COLD RE Kg/cm2 24

MS T/hr 196

MS 0C503

MS Kg/cm2 99.5

2nd Ext.T/hr N.A

2nd Ext. 0C170

2nd Ext. Kg/cm2 8.1

1st Ext.T/hr 53

1st Ext.0C380

1st Ext. Kg/cm2 243rd Ext.T/hr N.A

3rd Ext. 0CN.A

3rd Ext. Kg/cm2 2.5

HTR T/hr 198.8

T/hr 198.8 HTR 0C1450C170 HTR Kg/cm2 141.3 4A T/hr 112.8

Kg/cm2 4A 0C145

4A Kg/cm2 151.7

T/hr 198.8 4C T/hr0C215 4C 0C N.W

Kg/cm2 148 4C Kg/cm2 N.W

4B T/hr 86 T/hr 198.8

4B0C145 0C145

4B Kg/cm2 157.3 Kg/cm2 3.9

N.A - NOT AVAILABLE HPT - HIGH PRESSURE TURBINEN.W - NOT WORKING IPT - INTERMEDIATE PRESSURE TURBINEBFP - BOILER FEED PUMP LPT - LOW PRESSURE TURBINEHTR - HEATER CEP - CONDENSATE EXTRACTION PUMP

FIGURE 1A. WATER & STEAM CIRCUIT OF BTPS UNIT # 4 WITH IMPORTANT MASS &ENERGY FLOWS (55MW)

HTR2

HTR1

BFP4B

BFP4A

BFP 4C

BOILER HPT IPT

ECONOMISER

DRUM

WATER AND STEAM CYCLE

GENERATION = 55MW

T/hr N.A DATE = 17.10.060CN.A

Kg/cm2 N.A

T/hr 1340C 46 CW T/hr

Kg/cm2 N.A CW 0C31

CW Kg/cm2

COND T/hr 134

COND 0C46

COND cm Hg 8.0

T/hr

DM T/hr N.A 0C39.75

DM 0C N.A Kg/cm2

DM Kg/cm2 N.A5th Ext.T/hr

5th Ext. 0C 62

0.34CEP T/hr

CEP0C HTR 5 INLET

CEP Kg/cm2 HTR 5 T/hr N.A

HTR 5 0C53.7

HTR 5 Kg/cm2 4.9HTR 4 INLET

4th Ext.T/hr HTR 4 T/hr N.A

4th Ext. 0C HTR 4 0CN.A

4th Ext. Kg/cm2 0.63 Kg/cm2 4.9 DP T/hr N.A

DP 0CN.A

DP Kg/cm2 N.AHTR4HTR 4 T/hr N.A

OUTLET HTR 4 0C N.A

HTR 4 Kg/cm2 4.25

Bypass to Condenser

5th Ext.

Kg/cm2 (abs)

LPT LPT

CONDENCER

CEP

DM PLANT

Deep Tube well & Treated water pump

RIVER WATER

HTR 5

DA

HTR 4

DP

HOT WELL

55MW

AIR & FLUE GAS (FG) PATHGENERATION: 55MWDATE:17.10.06

ECO INLET (FG)

Temp. (0C ) 400.6

O2% 1.9

CO2% 17.0

COAL CO OOR25.4% Ash Flow 259.635.13 T/hr WATER OUT5266 Kcal/ Kg ECO

WATER INECO OUTLET (FG)

Temp. (0C ) 336.1 /APH INLET(FG)

O2% 3.4

APH CO2% 15.9

CO 637.0Flow 278.5

APH INLETAPH OUTLET ESP INLET (FG)/APH OUTLET ESP OUTLET (FG)/ID INLET

Temp.(0C ) 32.4 Temp. (0C ) 282.5 Temp. (0C ) 177.5 Temp. (0C ) 139.4

O2% 21 O2% 20.9 O2% 6.8 O2% 10.735

Flow 226.3 CO2% 0 CO2% 12.8 CO2% 0

CO (ppm) 6.7 CO 7971 CO OORFlow 336.5 Flow 446.5

Note: Assumtions: Air :Coal (Stoiciometric) = 5.8

OOR Out Of Range Excess Air= O2X100%/(21-O2)

Acuracy Upto 1st decimal place Fly Ash in Total Ash = 80%

ESPID

FD

Generation 55 MWDate: 17.10.06

Power Loss in ID Fan due to Infiltration of Air/Gas

Coal Burning Rate 35.13 T/HrStoichiometric Air Coal Ratio 6Stoichiometric Air 205.44 T/HrExcess Air Allowable for Complete Combustion= 21.00% of Stoi.AirExcess Air Allowable to Consider Infiltration in Economiser and APH, as per design= 2.00% of Stoi.AirExcess Air Allowed in ESP (assumed) 2.00% of Stoi.AirDesirable Flue Gas Flow at ESP Outlet, as per design 283.01 of Stoi.AirExcess of Excess Air (Actual - Desirable)= 163.49 T/HrReduction in Flow, if there were no excess of excess air= 36.62%Reduction in Consumption of Power (Ref. BEE Book 3, p98)= 15.63%Actual Power Consumption in ID Motor = 779 kWSaving in ID Fan Power, if there were no excess of excess air= 121.72 kWPlant Operating Hours = 3200 Hrs/AnnumElectrical Energy Saving = 389,500 kWh/AnnumBTPS Electricity cost (Rs/kWH) 0.022 GBP/kWhAnnual Monetary Saving = 8,466GBP/AnnumResulting Reduction in Plant Auxiliary Consumption = 2.21%

EXECUTIVE SUMMARY – BTPS UNIT # 4 & COMMON AREAS

Sl No

Energy Conservation Opportunities Recommended for Implementation

Estima-ted Annual Savings (GBP)

Proba-ble Inves-tment (GBP)

Simple Payb-ack (mon-ths)

Estimated Life of the Proposed System (Yrs)

Depreciation Charge (GBP/yr)

ROI (%)

Reduction in Aux. Cons(%)

Reduction in Heat Rate (%)

1 Limit the infiltration of atmospheric air to design value and associated thermal benefits 367,584 5,681 0.2 6 947 6454 1.33% 7.12%

2 Use of HF Electronic Ballast in pace of tube lights and associated electrical benefits 20,242 30,807 18.3 9 3081 56 2.03%

TOTAL 387,826 36,488 1.13 3.36% 7.12%

TOTAL CO2 REDUCTION BY ABOVE = 18765 Ton/Year

ENERGY CONSERVATION MEASURES

CASE 3 End Use : Power Generation Potential From Blast Furnace Gas

BLAST FURNACE AREA•Recovery of B.F. Gas•Improved Automation of Hot Blast Stove•Utilities- Pumps, Fans, Compressor, Conveying Systemsand Cooling Towers - Energy efficiency improvements

Sinter,Pellet, Ore, Flux, Coke

BF flow sheet

CASE STUDY : IRON & STEEL INDUSTRY (300 Mta)

Estimated CO-GENERATION FROMFLARED BF GAS:

• Savings per annum GBP 6.43 million

• Estimated investments GBP 11 million

• Simple pay back 21 months

• ROI – 52.27%

CASE 4 : ENERGY EFFICIENCY MEASURESAt Howrah Galvanizing and Wire Drawing Industries

Definition of MSMEs in IndiaDescription Investment in (GBP)

in Plant & MachineryInvestment in (GBP)

in Equipment

Manufacturing Enterprise

Service Enterprise

Micro Enterprises upto 30,750 upto 12,300

Small Enterprisesabove 30,750 & upto 615,000

above 12,300 & upto 246,000

Medium Enterprises

above 615,000 & upto 1.23 million

above 246,00 & upto 616,000

Large Enterprises above 1.23 million above 616,000

Profile of Indian SME SectorSl No Particular Value

1 Number of micro and small enterprises

13 million

2 Employment 41 million

3 Share in GDP 8-9%

4 Share in manufacturing output 45%

5 Share in exports 40%

List of BEE SME Energy Efficiency Programme Clusters

Sl. No.

Phase Sector Name Cluster Name State

1 1 Chemicals Ahmedabad Gujarat

2 1 Rice milling Warangal Maharashtra

3 1 Brass Jamnagar Gujarat

4 1 Textiles Solapur Maharashtra

5 1 Textiles Surat Gujarat

6 1 Textiles Pali Rajasthan

Contd ..

7 1 Ceramics Morbi Gujrat

8 2 Oil Mills Alwar Rajasthan

9 2 Machine tools Bangalore Karnataka

10 2 Foundries Batala, Jalandhar and Ludiana

Punjab

11 2 Ice making Bhimavaram Andhra Pradesh

12 2 Brass Bhubaneswar Orissa

13 2 Refractories E and W Godavari

Andhra Pradesh

Contd ..

14 2 Rice milling Ganjam Orissa

15 2 Dairy Gujarat Gujarat

16 2 Galvanizing and wire drawing

Howrah West Bengal

17 2 Brass and Aluminium utensils

Jagadhri Haryana

18 2 Lime kilns Jodhpur Rajasthan

19 2 Tea Jorhat Assam

20 2 Sea food processing

Kochi Kerala

21 2 Paper Muzaffarnagar Uttar Pradesh

22 2 Sponge Iron Orissa Orissa

Contd ..

23 2 Chemicals Vapi Gujarat

24 2 Bricks Varanasi Uttar Pradesh

25 2 Rice milling Vellore Tamil Nadu

26 3 Coir Alleppey Kerala

27 3 Tile Mangalore Karnataka

28 3 Textile Tiripur Tamil Nadu

29 3 Glass Firozabad Uttar Pradesh

Process flow diagram after project implementation :Air Pre-heater for Galvanizing and Annealing Furnaces

TECHNOLOGY : ENERGY EFFICIENCY MEASURESInstallation Of Air Pre-heater

TECHNOLOGY : ENERGY EFFICIENCY MEASURES

Case study : Installation Of Air Pre-heater In Howrah Galvanizing And Wire Drawing Industries

S.No Particular Unit Value

1 Project cost GBP 3,0782 Furnace Oil saving litre/year 53073 Monetary benefit GBP 2,2254 Debit equity ratio Ratio 2.445 Simple payback period Year 1.386 NPV GBP 3,2637 IRR %age 528 ROI %age 35.429 DSCR Ratio 2.7810 CO2 emission reduction Ton/year 1611 Process down time Days 4

Case study : Using Biomass Gasifier instead of Furnace Oil/Coalin Galvanizing of Howrah Cluster

Sl. No Particular Unit Value

1 Project cost GBP 49,909

2 Monetary benefit GBP 14,516

3 Debt equity ratio Ratio 2.14

4 Simple payback period year 3.44

5 NPV GBP 28,451

6 IRR %age 27.89

7 ROI %age 13.75

8 DSCR Ratio 1.55

9 Process down time Days 14

Case study : Installation Solar Water Heaterin Solahpur Cluster

S.No Particular Unit Value

1 Project cost GBP 1,117

2 Debit equity ratio Ratio 3:1

3 Monetary benefit GBP 601

4 Simple payback period Years 1.86

5 Net present value GBP 1,104

6 Internal rate of return %age 36.62

7 Return on Investment %age 26.60

8 Average debt service coverage ratio ratio 2.26

9 Procurement and implementation Time

week 10

Estimated Total Saving, Investment & CO2 Reduction of Howrah Cluster

Sl NoEnergy Conservation

Measure (ECM) as per DPR

Total Saving Potential (million

GBP)

Total Investment in

(million GBP)

CO2 reduction Ton/year

1

Air Pre-heater and Drying bed for Galvanizing and Annealing Furnaces 0.189 0.175 1533

2

Air-Pre Heater and Flux Solution Heating for Galvanizing and Annealing Furnaces 0.144 0.048 943

3Air Fuel Ratio Control with Oxygen Sensor 0.171 0.154 1398

4Air Pre Heater for galvanizing and annealing 0.125 0.184 1021

5Biomass Gasifier for Coal Based Furnaces 0.617 0.364 1539

6Biomass Gasifier for FO Based Furnaces 0.023 0.330 1762

Sl NoEnergy Conservation Measure

(ECM) as per DPR

Total Saving Potential

(million GBP)Total Investment in (million GBP)

CO2 reduction Ton/year

7 Energy Efficient Motor 15 kW 0.009 0.014 134

8 Energy Efficient Motor 22 kW 0.007 0.009 105

9 Energy Efficient Motor 45 kW 0.004 0.010 53

10

Air Pre-heater Heat Pipe Heat Exchangers for Galvanizing and Annealing Furnaces 0.027 0.060 198

11 Furnace Insulation Improvement 0.111 0.099 796

12DC motor of 160 kW with AC Motor of 90 kW with VFD 0.035 0.088 359

13DC motor of 260 kW with AC Motor of 180 kW with VFD 0.026 0.065 269

14Temperature Control in Zinc Bath in Galvanizing 0.044 0.076 357

15LPG Gas Fired Radiation Furnace for Annealing 0.096 0.237 1394

TOTAL 1.315 1.912 11863

TECHNOLOGY : ENERGY EFFICIENCY MEASURES

CASE 5 : VAM : AT AN UNIVERSITY CAMPUS (BESU)

• TOTAL ELECTRICAL LOAD : 850 KVA• TOTAL CONNECTED COOLING LOAD : 354 TR• 14 HOSTELS WITH 100 STUDENTS IN EACH : 1400

STUDENTS LIVING IN CAMPUS• PROPSED COGENERATION SYSTEM : TRIGENERATION –

POWER, HEATING AND COOLING• PROBABLE INVESTMENT (GBP): 508,572 • ESTIMATED ANNUAL SAVING (GBP/Yr): 161,568 • SIMPLE PAY BACK (Yr) :3.15 • ROI (%/Yr) : 26.77

SUMMARY : SIMPLE SOLUTIONS

• Energy Modesty• Education & Awareness• Training & Capacity Building• Upcoming Technologies: VAM, Heat

Pump, CHP, Smart Grid, PMM, etc.• International Collaboration• ISO 50001

Awareness, Seminar and TrainingFull time course – two years Master

Degree Energy Management in MPSM Programme under University of Calcutta

Short term course – three months short term course on Energy Management & Audit

Energy Club & AEE – India ChapterEnergy Research & Consultancy

Projects

IISWBM’S ENERGY MANAGEMENT INITIATIVES….SINCE 1993

37

ACKNOWLEDGEMENTS: IISWBM, LOUGHBOROUGH UNIVERSITY,

LCEDN, REFERRED BOOKS, WEBSITES

Questions?Email Please:

bkchoudhury@iiswbm.edubinoykchoudhury@gmail.com

THANK YOU

39

ON BEHALF OF

ENERGY MANAGEMENT DEPARTMENT OF

INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS MANAGEMENT

www.iiswbm.eduphone : 2241 3756; fax : 2241 3975

SUSTAINABLE ENERGY AND GHG ACCOUNTING CELL

ASSOCIATION OF ENERGY ENGINEERS - INDIA CHAPTER

www.aeeindia.org