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ABC of Energy Efficiency – Concept,

Approaches and Policies

Shaping the Discourse: Effective Energy Efficiency Storytelling

Prosanto Pal
Senior Fellow
Industrial Energy Efficiency Division
TERI, New Delhi

July 5, 2023
Why energy efficiency

❑ Energy efficiency improvements are


the cheapest and most effective way
of reducing CO2 emissions and
mitigating climate change

❑ According to the IEA (International


Energy Agency), improving energy
efficiency must account for more
than 50% of the measures needed
to win the battle against global
warming
Energy efficiency has an attractive payback

Option Payback, years

Solar 7-8
Wind power 10-12
Energy efficient equipment 2-5
Energy Consumption in Industry

❑ Large energy-intensive industries like fertiliser, cement, pulp and paper,


textiles, iron and steel, aluminum, chemicals

❑ 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

❑ 20-25% energy conservation potential


• Melting/heating
• Drying
Process
technologies • Evaporation
• Distillation

• Pumps
Cross-cutting • Fans
technologies • Compressors
Adoption of
energy-efficient • Air
options conditioning/refrigerati
on
• Drive motors
Fuel switch
• Natural gas
options
• Biomass

Recycling and use


of secondary
materials
Understanding of ‘areas’ and ‘levels’ of
energy efficiency helps targeting
Energy audits R&D

Area 1: Energy production Area 2: Energy usage


and distribution (plant within processes
auxiliaries)

Level 1:Efficient operation of the Better maintenance Best operating practices


existing plant (good housekeeping (rewinding) practices in furnace
measures)

Level 2: Major improvements in the Variable speed drive for Improved furnace
existing plant (retrofits and revamps) electric motor insulation

Level 3: New plant or process designs New energy efficient New energy efficient
electric motor furnace
Approaches
❑ Training and awareness creation
❑ Energy audits and implementation of EE technologies and
practices
❑ EE technology innovation
❑ Technology demonstration vs Technological capacity through
Research, Development, Demonstration and Dissemination
(RDD&D) initiatives

❑ Policies (financial concessions, regulation etc.)


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
Case Study: Energy audit of municipal water
pumping installations in Accra, Ghana
❑ Energy audits of pump-sets installed in water
pumping installations
❑ Energy 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

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Technology characteristics of energy-
intensive SMEs

❑ Conventional technologies which have


remained unchanged for decades
❑ Little R&D efforts
➢ Underdeveloped support institutions and local
service providers
➢ Limited capacity to innovate
RDD&D in SMEs

❑ Glass making is very energy intensive –


energy accounts for 40% of manufacturing
cost

❑ Considerable potential to reduce energy


consumption and carbon emissions by
adoption of energy efficient furnaces

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Approach
❑ Involved international and local experts to
develop (conduct R&D) on:

➢ Better furnace construction

➢ Burner design

➢ Recuperator design

❑ Demonstrated the energy efficient furnace


in one SME

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Energy savings of 30-35% demonstrated

Conventional coal/NG
fired Pot Furnace

Recuperative Natural Gas fired


Pot Furnace

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Disseminate

❑ Local service providers provided training

❑ Deployment

➢ 86 units have adopted the new technology; about 90% of the cluster

➢ Cumulative energy savings of 100,000 toe and CO2 savings of 300,000


tones

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Energy Efficiency Policies –Key Recent Initiatives

❑ Energy Conservation Act (ECA), 2001


➢ Bureau of Energy Efficiency (BEE), under the Ministry of Power , is the nodal agency
for implementation of ECA
➢ Modified in 2010 to provide legal mandate to PAT

❑ National Action Plan on Climate Change (NAPCC), 2008


➢ Eight missions were set-up. National Mission for Enhanced Energy Efficiency (NMEEE)
pertains to energy efficiency
➢ Performance, Achieve, and Trade (PAT) mechanism was launched under the NMEEE in
2008
Perform Achieve Trade (PAT) scheme –
salient features
❑ PAT is an innovative, market-based trading scheme
❑ Aim is to improve energy efficiency in industries by trading in energy
efficiency certificates in energy-intensive sectors
❑ Mandatory specific energy consumption targets for larger, energy-
intensive facilities (called Designated Consumers)
❑ Implemented in three phases-the first phase was from 2012-2015
❑ BEE is administering the PAT scheme
❑ Energy Efficiency Services Ltd (EESL) will administer the trading

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Preparatory activities undertaken by BEE
❑ 5 years energy data from DCs collected though the notified format
❑ Baseline Energy Audits conducted in all DCs
❑ Data compiled & analyzed for arriving at baseline SEC
❑ PAT Consultation Document prepared
❑ Stakeholder workshops conducted with different Industry groups
❑ The methodology for M&V system, Issuance of ESCerts & Trading
prepared
Thank You

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