Perform, Achieve & Trade (PAT) BEE Experience

S. P. Garnaik Bureau of Energy Efficiency

Ministry of Power, Govt. of India

India : Fact File

Population : 1.21 billion

GDP : $ 1.53 trillion GDP Growth : 8.5% pa

GDP Share : Service Sector (55.3%) Industry (28.6%) Agriculture ( 16.1%)

5th Largest Primary Energy Demand 1 / 4.7th of World per capita consumption 1 / 22nd of US per capita consumption

Primary Energy Demand Trend (Mtoe) (Source : World Energy Outlook,2007)

1990 2005 2015 2030 Coal 106 208 330 620

Oil 63 129 188 328

Gas 10 29 48 93

Nuclear 2 5 16 33

Hydro 6 9 13 22

Biomass 133 158 171 195

Other Rnw. 0 1 4 9

Total 320 537 770 1300

By 2030, India will be the 3rd largest energy consumer in the world after China & United States

Energy Efficiency is essential !

Par$culars   2004-­‐05   2005-­‐06   2006-­‐07   2007-­‐08    

2008-­‐09    

Industry  GDP  (in  Rs.  Crore)   468,451   506,519   560,775   602,032   617,882  

Commercial  energy  consump$on  in  Industry  (in  mtoe)  

152.8   164.7   174.3   181.4   186.3  

Energy  Intensity  of  industry  sector  (mtoe  per  Billion  Rs.    GDP)  

0.0326   0.0325   0.03102   0.03019   0.03015  

Ra$o  energy  intensity:  industry  vs.  agriculture  and  service  sector  

4   4.3   4.2   4.3   4.4  

Note:  GDP  at  factor  cost  at  constant  (1999-­‐2000)  prices  (in  Rs.  Crore)  Source:  Green  raEng  Project,  2009,  Centre  for  Science  and  Environment,  New  Delhi  

The energy intensity i.e. energy consumed per unit of GDP for industrial sector has declined by about 1.5% per annum during 2004-05 to 2008-09 although the ratio of energy intensity in industry to agriculture & service sector hovers around 4.0 – 4.4

Energy Scenario in Industrial Sector

Increase Competitiveness

- Change in Technology - Retrofit Options - - In-House R&D

- -Adoption of EE Techniques - -Fuel Shift

Regulatory Compulsion

- EC Act 2001 - Energy Audits

- - Separate EC Cell

Increase Awareness About EC

- More Publicity thru various media

- Concept of CB options - - NECA

- -Rigorous Activities by various agencies

Reasons for Change in Energy Usage Pattern

Trend of SEC (Elect.) of Cement Industries (KWH/ton)

9188

8784

77.5 76.475.2

60

65

70

75

80

85

90

95

1999-00 2000-01 2001-02 2002-03 2005-06 2006-07 2007-08

Data of 38 major industries having Dry-Process Technology

Source : TERI

Data of 28 major industries having Dry-Process Technology

Source : BEE

SEC has reduced by about 1.7% per year

Trend of SEC (Thermal) of Cement Industries (Kcal/kg of Clinker)

SEC has reduced by about 1.7% per year

748

740 742

734

725.8 725.9 726

700

710

720

730

740

750

760

1999-00 2000-01 2001-02 2002-03 2005-06 2006-07 2007-08

SEC has reduced by about 0.3% per year

Best SEC : 688.7

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE)

Ø The National Action Plan on Climate Change was released by Honorable Prime Minister of India in June 2008

Ø The Action Plan Outlines 8 Missions including National Mission on Enhanced Energy Efficiency (NMEEE) Ø The Mission has outlined specific goals

NMEEE – Four New Initiatives

NMEEE

PAT MTEE EEFP FEEED Energy Intensive Industries

Targets for Mandatory Energy Saving

Energy Efficient Appliances BLY SEEP DSM

Stimulate Funding for ESCOs

Fiscal Instrument for EE PRGF VCF Public Procurement

PAT Scheme : Background & Scope

Ø  Covers 477 designated consumers in 8 sectors Ø All DCs consume about 165 mtoe energy Ø  Targets would be given to all DCs to achieve the same within a time frame •  Achievement > Target E-Scerts •  Achievement < Target Purchase E-Scerts / Penalty

Ø National Target = 6.6 mtoe at the end of 1st PAT Cycle ( by 2014-15)

Concept of Target, Compliance, Escerts & Penalty

Target

Baseline SEC

Target SEC

Achieved SEC

Scenario 1 Scenario 2

Compliance

Issued Escerts

Purchase Escerts

Penalty

THE PAT SCHEME ….. Approach

INDUSTRY (DC)

Establish Baseline

Review of Present Energy Scenario & Bandwidth (Completed)

Development of Baseline Formats with System Boundaries

Data Collection, Compilation & Analysis Verification of Data

Set Targets for SEC Reduction

Achieve the Target Technology Transfer, EE Technology, R&M, R&D

Verification Protocol

Trade the higher achieved saving through E-Certs

The energy usage pattern varies widely in industries of a particular sector due to various diversities like - Scale of Production (Installed Capacities) - Use of Raw Material - Process Technology - Vintage - O & M Practices - Type of Product Output etc.

Reasons for Large Energy Usage Bandwidth

Factors  of  Diversity   Most  Affected  Sectors  a)  Raw  Material  Input   Pulp  &  Paper,  FerElizer,  Power  Plant,  TexEle  a)  Quality  of  Raw  Material  /  Fuel   All  sectors  a)  Process    &  Technology   Aluminium,  Iron  &  steel,  Chlor-­‐Alkali,  Paper  a)  Final  Product  output   TexEle,  Iron  &  Steel,  Aluminium  a)  Vintage   All  Sectors  a)  Capacity  UElilizaEon   All  sectors  

Reported Data by Different DCs have revealed the impact on SEC due to various diversities

No.  of  DCs   Range  of  SEC  145   1740  -­‐  4028  Kcal/kwh  65   0.052  -­‐  0.112      toe/  t  80   0.02  -­‐  14.75  toe/  t  28   2.68  -­‐  16.89  toe/  t  10   0.183  -­‐  6.405    toe/  t  31   0.215  -­‐  1.57  toe/  t  85   0.01  -­‐  7.8    toe/  t  18   0.194  -­‐  1.833  toe/  t  

Sector 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

CementIron  &  SteelFertilizerAluminiumPulp  &  PaperTextileChlor-­‐Alkali

toe  /  ton  of  product

Target is Plant Specific …… Less for Energy Efficient & High for Energy Inefficient Plant

Ø  Covers units using about 165 million toe/year •  Gate-to-gate specific energy

consumption, collectively, to be about 5.5% less in 2013-14 than it was in 2008-09

•  Less efficient units have larger SEC %-reduction targets – so that the collective SEC reduction is 5.5%

Ø  Energy Savings Certificates (and penalties) would be based on difference between the achieved SEC & the target SEC and the base year Production

SEC Spread in Baseline & Target Year

Pulp & Paper Sector Wood Based Chemical Pulping Process Non-Specialty paper

17 DCs

Baseline SEC

8.51% Higher Target for Energy In-Efficient

Plants

SEC Spread as per Grouping of DCs in Pulp & Paper Sector

Wood : Ch. Pulping + NSP

100% market Pulp

Wood : Ch. Pulping + SP

Agro based RCF :

News Print

Wood : News Print

RCF : Non-News Print

Approach for Setting Targets Depends upon the Objective of the Scheme

Total Saving Objective = 6.6 MTOE

Sector   No.  of  Iden$fied  DCs  

 Reported  Energy  Consump$on  

Share  of  Consump$on  

Appor$oned  Energy  

reduc$on    

        (MTOE)   (%)   (MTOE)  Iron  &  Steel   76                      28.00     46.66%                  1.647    Cement   82                      11.87     19.78%                  0.698    FerElizers   29                          7.86     13.10%                  0.462    Aluminium   10                            7.73     12.88%                  0.455    Paper  &  pulp   31                            2.09     3.48%                  0.123    

TexEle      85                            1.62     2.70%                  0.095    Chlor-­‐Alkali    22                          0.84     1.40%                  0.049      Sub_Total    335                        60.01     100%   3.53    

TPPs   142   104.56   100%   3.10  TOTAL   477   164.57   6.63  

Challenge before PAT

Ø  In order to achieve the target set for the industry in a sector, the industry has to look for

-  Efficiency improvement in existing plant through retrofit options

-  Introduce best available technology -  R & M of existing plants -  Recovery of Waste Energy

It is quite necessary to overcome the barrier (High Initial Cost) to make the energy efficient technologies as an attractive option.

Technology Transfer is quite necessary at an affordable cost and acceptable mechanism.

Investments (Rs.Lacs) done by DCs to Achieve 1 toe saving

(Source : National Energy Conservation Award, GOI)

Investments Expected to Achieve PAT Targets

S. No  

Sector / Sub sector  

Investment per toe

(in Rs. Lakhs)  

Saving (in mtoe)  

Investment (Rs. Cr)  

1   Aluminium   1.037   0.455   4717  2   Cement   0.555   0.698   3873  3   Chlor-Alkali   0.433   0.049   212  4   Fertilizer   0.392   0.462   1812  5   Iron & Steel   0.122   1.647   2007  6   Paper & Pulp   0.682   0.123   839  7   Textile   0.193   0.095   184  

Sub-Total   3.530   13,644  8   Thermal Power Plants   2.00   3.100   62,000  

  Grand Total     6.63   75,644  

23

Thanks …. For further information, Please Contact

S.P.Garnaik Energy Economist

Bureau of Energy Efficiency,

Ministry of Power, GOI

Ph.: 011-23359736

Email: sgarnaik@beenet.in

•  National  Solar  Mission •  National  Mission  for  Enhanced  Energy  Ef4iciency •  National  Mission  on  Sustainable  Habitat •  National  Water  Mission •  National  Mission  for  Sustaining  the  Himalayan  Ecosystem •  National  Mission  for  a  Green  India •  National  Mission  for  Sustainable  Agriculture •  National  Mission  for  Strategic  Knowledge  for  Climate  Change

Missions under NAPCC

Mission Goals

Ø Market-based approaches to unlock energy efficiency opportunities, estimated to be about Rs. 74,000 Crores

Ø By 2014-15: •  Annual fuel savings in excess of 23 million toe •  Cumulative avoided electricity capacity addition of

19,000 MW •  CO2 emission mitigation of 98 million tons per year

Industry Sector Annual Energy Consumption Norm to be

DC (mtoe)

No. of Identified DCs

Aluminum 7500 10 Cement 30000 82

Chlor-Alkali 12000 22 Fertilizer 30000 29

Pulp & Paper 30000 31 Power 30000 142

Iron & Steel 30000 76 Textiles 3000 85

List of DCs

Sector   MTOE  Power  (Thermal)   104.14  Iron  &  Steel   28.00  Cement   11.87  FerElizer   7.86  Aluminium   7.73  Paper   2.09  TexEle   1.62  Chlor-­‐Alkali   0.84  

TOTAL   164.15  

Estimated Energy Consumption in DCs

About 70% of DCs Contribute 97% of Total

Consumption

About 30% of DCs contribute rest 3% of Total Consumption

Target in PAT

Target is defined as the % reduction of ‘Specific Energy Consumption (SEC)’ from Baseline value.

Plant System Boundary

All forms of Energy Product

E P

SEC = E / P SEC

Y1 Y2 Y3

Baseline SEC

Target SEC Reduction in SEC

Expressed in %