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“CURRENT ENERGY EFFICIENCY
   INITIATIVES IN INDIA”
      D.Pawan Kumar
          NPC India
         (Feb 2011)
INDIAN ENERGY SCENARIO
•   Coal Sector
     – 7.1 % of the world reserves
     – higher calorific value and low ash content coal are being imported mainly from
       Australia, Indonesia and South Africa
     – 15 % of the annual coal requirement imported
     – A tax (clean energy cess) of Rs. 50 on every tonne of coal mined in the country as well as that
       imported from abroad.
•   Oil Sector
     – 0.5% of the total world reserves
     – accounts for about 31 % of the country’s primary energy consumption
     – transport accounts for 42% followed by domestic sector and industry sector with 24% each
       respectively
•   Natural Gas Sector
     – 0.6% of the total World reserves
     – natural gas is cooled to -161oC to get Liquefied Natural Gas (LNG) (600 times reduction in
       volume)
     – Compressed Natural Gas (CNG) is made by compressing natural gas to less than 1% of the
       volume it occupies at standard atmospheric pressure
     – accounts for about 8.6 per cent of fuel consumption
• Out of the total annual primary commercial
  energy supply of 408.49 MTOE, 62.5% of total
  primary commercial energy is used in the form of
  Coal, oil, gas for non thermal power generation
  etc, whereas 37.5% of total primary commercial
  energy is used for thermal power generation .
• Designated sectors (Cement, Iron & Steel, Paper
  & Pulp, fertilizer, aluminum, textile and chlor-
  alkali) except Thermal Power Plant account for
  (122.26 MTOE) 29.9% of total primary
  commercial energy consumption.
The National Mission for Enhanced
    Energy Efficiency (NMEEE)
• Perform Achieve and Trade (PAT), which is a market-based
  mechanism to enhance cost effectiveness of improvements in
  energy efficiency in energy intensive large industries and facilities
  through certification of energy savings that could be traded.
• Market Transformation for Energy Efficiency(MTEE) – to accelerate
  the shift to energy efficient appliances in designated sectors
  through innovative measures to make the products more
  affordable.
• Energy Efficiency Financing Platform (EEFP) –to simulate necessary
  funding for ESCO based delivery mechanisms for energy efficiency.
• Framework for Energy Efficient Economic Development(FEED) to
  develop fiscal instruments to promote energy efficiency like the
  Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for
  Energy Efficiency (VCFEE).
OVERVIEW OF ENERGY INTENSIVE
           SECTORS
            1. THERMAL POWER PLANTS
• As per the Integrated Energy Policy Report
  (IEPR), prepared by the Planning Commission, GDP
  growth rate of 9% has been projected during the XI
  plan
• Installed capacity of 100,351 MW
• The total thermal power generation was 589 BU in FY
  2009.
• Average Station heat rate (SHR) is about 2700 kCal
  /kWh.
• The sectoral DC energy consumption is 151 MMTOE.
OPTIONS FOR BRIDGING ENERGY
        EFFICIENCY GAPS in TPP’S
•   Renewable Energy generation increase
•   Auxiliary Power Consumption reduction
•   Plant Load Factor improvement
•   Supercritical technology
•   Ultra Mega Power Plants
2. OVERVIEW OF
           IRON & STEEL SECTOR
• Per capita consumption of steel in India is about
  46 Kg
• According to Ministry of Steel, Government of
  India, production of crude steel was 54 MMT in
  FY 2009.
• The sectoral DC Energy consumption is 42.45
  MMTOE.
• The average specific energy consumption in India
  for crude steel production is 7.8 Mkcal/tonne
• Production of Iron and Steel industry is expected
  to grow at the rate of 7.3% over the future years.
OPTIONS FOR BRIDGING ENERGY
     EFFICIENCY GAP in STEEL SECTOR
•   Top pressure recovery Turbine system
•   Pulverized Coal injection system
•   Waste heat recovery improvement
•   Coke dry quenching technology adoption
•   Cogeneration improvements
•   Continuous casting system adoption
3. OVERVIEW OF FERTILIZER SECTOR
 • According to Department of Fertilizers, the total
   production of nitrogenous and phosphatic
   fertilizers during FY 2008 was 33 MMT.
 • The sectoral DC energy consumption is 29.81
   MMTOE
 • The production from the Indian Fertilizer industry
   is expected to grow at a rate of 5% in the future.
 • The average specific energy consumption of the
   industry is 8.97 Mkcal/tonne.
OPTIONS FOR BRIDGING ENERGY EFFICIENCY
       GAPS in FERTILIZER SECTOR
•   Shift to Natural Gas based production
•   Installation of Pre-reformers
•   Adoption of Purge gas recovery units
•   Catalyst upgrades
•   Use of high pressure reformers
•   Improvements in Ammonia synthesis process
4. OVERVIEW OF
        PAPER AND PULP SECTOR
• The annual sectoral production is 7.6 million TPA
• The Sectoral DC energy consumption is 5.15
  MMTOE
• The average specific electrical and thermal
  energy consumption values for paper and pulp
  production in India are 1600 kWh/tonne and 5.4
  Mkcal/tonne respectively.
• The share of energy costs in the total
  manufacturing cost is close to 25%.
OPTIONS FOR BRIDGING ENERGY EFFICIENCY
         GAPS in PULP & PAPER SECTOR
•   Increased Biomass energy use
•   Paper machine upgrades & DCS adoption
•   Cogeneration plant upgrades
•   Drive improvements
•   Steam economy measures
5. OVERVIEW OF TEXTILE SECTOR
• The Industry accounts for 4% to GDP & 17% to
  country’s export earnings.
• During FY 2008, the total production of cloth was
  56025 million m2.
• The industry is expected to register and annual
  growth rate of 7%.
• The Sectoral DC energy consumption is 28.14
  MMTOE.
• The energy requirement for production of cloth is
  about 0.50 kgOE/Sq.m
OPTIONS FOR BRIDGING ENERGY EFFICIENCY
          GAPS in TEXTILE SECTOR
• Modernizing Spinning/Weaving/Processing
  equipments
• Variable speed drives adoption
• Waste heat recovery & Steam economy
  improvements
6. OVERVIEW OF CEMENT SECTOR
 • Total installed capacity is around 231 million tonnes
   per annum (MMTPA) (September 2009)
 • In FY 2008, as per Cement Manufactures
   Association(CMA), the cement production is India was
   170 million metric tones (MMT).
 • During the eleventh plan period (2007-12), cement
   production is targeted to grow by 8% annually.
 • The sectoral DC energy consumption is 14.35 MMTOE
 • The average specific electrical and thermal energy
   consumption for cement plants in India is 98
   kWh/tonne and 0.76 MKcal/ tonne of cement
   respectively and 84 kgOE/Tonne
OPTIONS FOR BRIDGING ENERGY EFFICIENCY
            GAPS in CEMENT SECTOR
•   Multistage preheater system
•   Mill Modernization
•   DCS adoption
•   Fan system improvements
•   Waste heat recovery upgrades
7. OVERVIEW OF ALUMINIUM
               SECTOR
• Total production of aluminum in FY2008 was 1.23
  MMT
• Expected to register an annual growth rate of
  7%.
• The sectoral DC energy consumption is 1.77
  MMTOE
• The current average specific energy consumption
  in the Indian aluminum industry is approximately
  14.4 Mcal/tonne(1440kgOE/T)
• Electricity accounts for 40% of production cost.
OPTIONS FOR BRIDGING ENERGY EFFICIENCY
       GAPS in ALUMINIUM SECTOR
• Adoption of point feed baked Anode system
• Steam parameter up scaling in Combined
  power plants
8. OVERVIEW OF CHLOR ALKALI
               SECTOR
• The total production of Caustic soda in FY2008 was
  2.20 MMT which is expected to increase to 2.7 MMT
  by FY2012 with an annual growth rate of 7%.
• The membrane cell technology requires electricity in
  the range of 2500-2700 kWh/tonne as compared to
  2900-3200 kWh/tonne required in the diaphragm
  technology and 3300-3700 kWh/tone required in the
  mercury cell technology.
• The Sectoral DC energy consumption is 0.565 MMTOE.
• The average specific energy consumption by the chlor
  alkali industry is about 2.57 Mkcal/tone of caustic soda
  (260 KgOE/Ton)
OPTIONS FOR BRIDGING ENERGY EFFICIENCY
         GAPS in CHLOR ALKALI SECTOR
•   Brine Quality improvements
•   Membrane upgrades
•   Caustic Concentration Plant Modernization
•   Utility System Modernization
•   Trigeneration
ENERGY SAVING MARGINS
        Sectors               Average Specific consumption
                           Existing                 Best Practice
   TPP (Heat Rate)          2703.9                     2432.2
Iron & Steel (kg OE/T)       788                         600
 Fertilizers (kg OE/T)       897                         760
Paper & Pulp (kg OE/T)       678                         505
Textiles (kg OE /Sq.M)       0.5                         NA
       Cement                 84                        70.6
Aluminium (kg OE/T)         1440                        1100
 Chlor Alkali (kg OE/T)      257                         213


  • Best and
           Average values coexist across sector.
  •Wide bandwidth is a concern area
  •PAT scheme envisaged to be a stimulant for bridging gaps
OVERVIEW OF SAVINGS
      ACHIEVED DURING 2007-10
• A recent NPC third party verification study of
  BEE initiatives indicates that during (2007-10)
  22.51 million TOE and cumulative avoided
  generation capacity 4996 MW was achieved.
• The financial savings amount to about
  – US$ 13.2 Billion by way of fuel savings (US$
    600/TOE
  – US$ 8 Billion by way of avoided capacity
    generation and transmission infrastructure (US
    $16 lakhs/MW
CONCLUSION
• The verified avoided capacity addition as a result of BEE
  initiatives have reached 5000 MW, and is expected to exceed
  the targeted 5% reduction (10,000 MW) by 2012.
• NMEEE, will scale up this effort and results.
• Success of the STAR labeling programmes, the CDM-based CFL
  programme, strong institutional structure with setting up of
  EESL and capacity building of State Designated Agencies, EC
  act implementation, success of star labeling programs, BLY
  program, SDA initiatives, institutional strengthening by EESL
  incorporation, NCE schemes for capacity building are felt to
  be major steps in Energy efficiency roadmap of India.
THANK YOU

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Ee opportunities

  • 1. “CURRENT ENERGY EFFICIENCY INITIATIVES IN INDIA” D.Pawan Kumar NPC India (Feb 2011)
  • 2. INDIAN ENERGY SCENARIO • Coal Sector – 7.1 % of the world reserves – higher calorific value and low ash content coal are being imported mainly from Australia, Indonesia and South Africa – 15 % of the annual coal requirement imported – A tax (clean energy cess) of Rs. 50 on every tonne of coal mined in the country as well as that imported from abroad. • Oil Sector – 0.5% of the total world reserves – accounts for about 31 % of the country’s primary energy consumption – transport accounts for 42% followed by domestic sector and industry sector with 24% each respectively • Natural Gas Sector – 0.6% of the total World reserves – natural gas is cooled to -161oC to get Liquefied Natural Gas (LNG) (600 times reduction in volume) – Compressed Natural Gas (CNG) is made by compressing natural gas to less than 1% of the volume it occupies at standard atmospheric pressure – accounts for about 8.6 per cent of fuel consumption
  • 3. • Out of the total annual primary commercial energy supply of 408.49 MTOE, 62.5% of total primary commercial energy is used in the form of Coal, oil, gas for non thermal power generation etc, whereas 37.5% of total primary commercial energy is used for thermal power generation . • Designated sectors (Cement, Iron & Steel, Paper & Pulp, fertilizer, aluminum, textile and chlor- alkali) except Thermal Power Plant account for (122.26 MTOE) 29.9% of total primary commercial energy consumption.
  • 4. The National Mission for Enhanced Energy Efficiency (NMEEE) • Perform Achieve and Trade (PAT), which is a market-based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy intensive large industries and facilities through certification of energy savings that could be traded. • Market Transformation for Energy Efficiency(MTEE) – to accelerate the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. • Energy Efficiency Financing Platform (EEFP) –to simulate necessary funding for ESCO based delivery mechanisms for energy efficiency. • Framework for Energy Efficient Economic Development(FEED) to develop fiscal instruments to promote energy efficiency like the Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE).
  • 5. OVERVIEW OF ENERGY INTENSIVE SECTORS 1. THERMAL POWER PLANTS • As per the Integrated Energy Policy Report (IEPR), prepared by the Planning Commission, GDP growth rate of 9% has been projected during the XI plan • Installed capacity of 100,351 MW • The total thermal power generation was 589 BU in FY 2009. • Average Station heat rate (SHR) is about 2700 kCal /kWh. • The sectoral DC energy consumption is 151 MMTOE.
  • 6. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in TPP’S • Renewable Energy generation increase • Auxiliary Power Consumption reduction • Plant Load Factor improvement • Supercritical technology • Ultra Mega Power Plants
  • 7. 2. OVERVIEW OF IRON & STEEL SECTOR • Per capita consumption of steel in India is about 46 Kg • According to Ministry of Steel, Government of India, production of crude steel was 54 MMT in FY 2009. • The sectoral DC Energy consumption is 42.45 MMTOE. • The average specific energy consumption in India for crude steel production is 7.8 Mkcal/tonne • Production of Iron and Steel industry is expected to grow at the rate of 7.3% over the future years.
  • 8. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAP in STEEL SECTOR • Top pressure recovery Turbine system • Pulverized Coal injection system • Waste heat recovery improvement • Coke dry quenching technology adoption • Cogeneration improvements • Continuous casting system adoption
  • 9. 3. OVERVIEW OF FERTILIZER SECTOR • According to Department of Fertilizers, the total production of nitrogenous and phosphatic fertilizers during FY 2008 was 33 MMT. • The sectoral DC energy consumption is 29.81 MMTOE • The production from the Indian Fertilizer industry is expected to grow at a rate of 5% in the future. • The average specific energy consumption of the industry is 8.97 Mkcal/tonne.
  • 10. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in FERTILIZER SECTOR • Shift to Natural Gas based production • Installation of Pre-reformers • Adoption of Purge gas recovery units • Catalyst upgrades • Use of high pressure reformers • Improvements in Ammonia synthesis process
  • 11. 4. OVERVIEW OF PAPER AND PULP SECTOR • The annual sectoral production is 7.6 million TPA • The Sectoral DC energy consumption is 5.15 MMTOE • The average specific electrical and thermal energy consumption values for paper and pulp production in India are 1600 kWh/tonne and 5.4 Mkcal/tonne respectively. • The share of energy costs in the total manufacturing cost is close to 25%.
  • 12. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in PULP & PAPER SECTOR • Increased Biomass energy use • Paper machine upgrades & DCS adoption • Cogeneration plant upgrades • Drive improvements • Steam economy measures
  • 13. 5. OVERVIEW OF TEXTILE SECTOR • The Industry accounts for 4% to GDP & 17% to country’s export earnings. • During FY 2008, the total production of cloth was 56025 million m2. • The industry is expected to register and annual growth rate of 7%. • The Sectoral DC energy consumption is 28.14 MMTOE. • The energy requirement for production of cloth is about 0.50 kgOE/Sq.m
  • 14. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in TEXTILE SECTOR • Modernizing Spinning/Weaving/Processing equipments • Variable speed drives adoption • Waste heat recovery & Steam economy improvements
  • 15. 6. OVERVIEW OF CEMENT SECTOR • Total installed capacity is around 231 million tonnes per annum (MMTPA) (September 2009) • In FY 2008, as per Cement Manufactures Association(CMA), the cement production is India was 170 million metric tones (MMT). • During the eleventh plan period (2007-12), cement production is targeted to grow by 8% annually. • The sectoral DC energy consumption is 14.35 MMTOE • The average specific electrical and thermal energy consumption for cement plants in India is 98 kWh/tonne and 0.76 MKcal/ tonne of cement respectively and 84 kgOE/Tonne
  • 16. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in CEMENT SECTOR • Multistage preheater system • Mill Modernization • DCS adoption • Fan system improvements • Waste heat recovery upgrades
  • 17. 7. OVERVIEW OF ALUMINIUM SECTOR • Total production of aluminum in FY2008 was 1.23 MMT • Expected to register an annual growth rate of 7%. • The sectoral DC energy consumption is 1.77 MMTOE • The current average specific energy consumption in the Indian aluminum industry is approximately 14.4 Mcal/tonne(1440kgOE/T) • Electricity accounts for 40% of production cost.
  • 18. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in ALUMINIUM SECTOR • Adoption of point feed baked Anode system • Steam parameter up scaling in Combined power plants
  • 19. 8. OVERVIEW OF CHLOR ALKALI SECTOR • The total production of Caustic soda in FY2008 was 2.20 MMT which is expected to increase to 2.7 MMT by FY2012 with an annual growth rate of 7%. • The membrane cell technology requires electricity in the range of 2500-2700 kWh/tonne as compared to 2900-3200 kWh/tonne required in the diaphragm technology and 3300-3700 kWh/tone required in the mercury cell technology. • The Sectoral DC energy consumption is 0.565 MMTOE. • The average specific energy consumption by the chlor alkali industry is about 2.57 Mkcal/tone of caustic soda (260 KgOE/Ton)
  • 20. OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in CHLOR ALKALI SECTOR • Brine Quality improvements • Membrane upgrades • Caustic Concentration Plant Modernization • Utility System Modernization • Trigeneration
  • 21. ENERGY SAVING MARGINS Sectors Average Specific consumption Existing Best Practice TPP (Heat Rate) 2703.9 2432.2 Iron & Steel (kg OE/T) 788 600 Fertilizers (kg OE/T) 897 760 Paper & Pulp (kg OE/T) 678 505 Textiles (kg OE /Sq.M) 0.5 NA Cement 84 70.6 Aluminium (kg OE/T) 1440 1100 Chlor Alkali (kg OE/T) 257 213 • Best and Average values coexist across sector. •Wide bandwidth is a concern area •PAT scheme envisaged to be a stimulant for bridging gaps
  • 22. OVERVIEW OF SAVINGS ACHIEVED DURING 2007-10 • A recent NPC third party verification study of BEE initiatives indicates that during (2007-10) 22.51 million TOE and cumulative avoided generation capacity 4996 MW was achieved. • The financial savings amount to about – US$ 13.2 Billion by way of fuel savings (US$ 600/TOE – US$ 8 Billion by way of avoided capacity generation and transmission infrastructure (US $16 lakhs/MW
  • 23. CONCLUSION • The verified avoided capacity addition as a result of BEE initiatives have reached 5000 MW, and is expected to exceed the targeted 5% reduction (10,000 MW) by 2012. • NMEEE, will scale up this effort and results. • Success of the STAR labeling programmes, the CDM-based CFL programme, strong institutional structure with setting up of EESL and capacity building of State Designated Agencies, EC act implementation, success of star labeling programs, BLY program, SDA initiatives, institutional strengthening by EESL incorporation, NCE schemes for capacity building are felt to be major steps in Energy efficiency roadmap of India.