Developing a Successful Energy
Efficiency Program in Municipal Sector
Pradeep Kumar
Sr. Technical Specialist
Mission Statement:
The Alliance to Save Energy promotes energy
efficiency worldwide to achieve a healthier economy,
a cleaner environment, and greater energy security.
What is the Alliance to Save Energy?
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Established in 1977
Non-Profit
A leader in energy efficiency in all relevant sectors:
• buildings • industry
• municipal
• utilities • appliances • transportation
• research • policy
• education
• federal government (e.g., FEMP)
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Experience in over 30 countries
Recognized as the municipal water and energy efficiency
expert in India
Developing a Municipal Energy Efficiency
Project
What Can Municipalities Do To Promote
Energy Efficiency?
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Create management infrastructure
Expand water metering and monitoring systems
Develop baselines and metrics
Carry out facility assessments
Establish goals and benchmark success
Develop an action plan
Seek outside assistance
Mobilize community action
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Management and leadership are key
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What Municipalities will get
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More Water & Better Services delivered to Consumers
Saves Money / Better Value for Money Spent
Saves Energy / Extra Energy for other usages
Opportunity for Savings: 15 – 40% of annual energy cost
Quick Paybacks
Can help reduce the need for new infrastructure
Carbon Credits- Contribution in reduction of GHG
emission
Steps for Developing a Municipal EE
Project
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Self assessment to choose the best fit option for
undertaking Energy Efficiency (EE) program
Establishment of Energy management cell (EMC)
Collect energy usage data by carrying out a preliminary
(walk-through) audit
Develop and issue a request for Expressions of Interest
(EOI)
Issue a Request for Proposal (RFP)
Steps for Developing a Municipal EE
Project
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Evaluate the proposals
Finalize consultant selection
Award the energy Audit or IGA contract,
In case of ESCO implementation :
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Package the documentation for third party financing
Enter into the performance contract
Monitoring and Verification of savings (M&V)
GUIDELINES FOR SELF-ASSESSMENT
for UNDERTAKING EE PROJECTS
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What are the reasons for undertaking the EE project?
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Rising energy prices
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Increased water demand
What are the goals for the project?
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Reduce energy costs
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Improve delivery of services
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Reduce GHG emission
Is the project feasible?
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Market analysis , Technical analysis, Financial
analysis
GUIDELINES FOR SELF-ASSESSMENT
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What type of contract should be used for the project and
how should it be financed?
Turnkey –
 Municipality Self financing (O&M funds, Other )
 Municipality borrows from private financial institution
Energy Services – ESCO financing
Performance Contacts
 Guaranteed savings
 or Shared Savings
Indicative Bid Evaluation Criterion
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Accreditation/Certification by BEE and/or PCRA or SDA
No. of Certified Energy Auditors with the firm
Municipal Energy Efficiency Experience
Similar Project Experience
Measuring instruments available
Annual turnover during the past 3-5 years
Qualification
Firm Credibility
Performance contracting experience – In case of ESCO
implementation
Successful client list
Focus Area
Water Supply – Bulk water & distribution
 Sewage handling systems
 Street Lighting
 Buildings
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What is happening?
What is happening?
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System might have under gone several changes
including addition of loads in delivery systems
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Major retrofitting of pumps (in parts) might have taken
place
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Changes in the station headers / piping arrangement
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Look for minimum acceptable efficiency values for
pump/motor as part of tender??
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Incorporation energy efficiency parameters during the
design stage it self??
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Compare tenders not on ‘first cost’ but on ‘life cycle
cost’?
Reasons for poor efficiency – Water
pumping
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Changes in system with the demand
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Major retrofits of pumps and other system components –
change of BOP
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Changes in operating practices/schedules
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Less thrust for minimum acceptable efficiency values for
pump/motor as part of tender
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Compare tenders on ‘first cost’ but not on ‘life cycle cost’
Reasons for poor efficiency- Street
lighting
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No design based approach
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Use of lighting components from secondary market
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Inadequate metering and monitoring facilities
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No proper guidelines on lamp/fitting selection
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Absence of control systems
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Selection of tenders on ‘Low cost’ basis for O & M of
street lighting
Remedies may involve
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System redesign and retrofitting of equipment
Pump impeller reduction
Leak and loss reductions
Equipment upgrades
Low-friction pipe
Efficient pumps
Adjustable speed drive motors
Capacitors
Transformers
Maintenance and operation practices improvements
Water reclamation and reuse.
Energy Efficiency Recommendations
Include
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Replacement of old pump with new pump (High
Efficiency)
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Opting for suitable pumps (Matching of H & Q)
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Rectification of pump to improve operating efficiency
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Change of operating practises / better maintenance/
leakage
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Scheduling of pumps operation and filling practice
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Improvement in piping section / headers
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In multiple pump operations, judiciously mix the
operation of pumps and avoid throttling
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Have booster pump for few areas of higher head
EE Recommendations Include
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Surrendering of Excess kVA demand
Enhancement of demand to avoid monthly demand
penalties
Power Factor improvement to avoid pf penalty &
reduction of demand
Switching off the transformers
Review of electricity tariff and opting suitable tariff
Segregation of electrical loads
Monitor all important system parameters like: motor kW,
pump head, flow temperature.
EE Recommendations– Street lighting
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Use of energy efficient lighting
Design based approach
Regulating power parameters to suit the actual
requirements
Providing guidelines on usage of quality material
Controlling the burning hours of the lamps
Dimming
Staggered operation
No Cost /Low Cost EE Measures
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Surrendering of Excess Contract Demand ( KVA)
Improvement of Power factor (PF) ( 0.95)
Improvement in O & M Practices
Separation of LT & HT Load
Minor Rectification in Pump
Leak Detection and Repair
Medium Cost Investment EE Measures
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Installation of Capacitors – PF improvement
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Replacement of Low efficient Pump set
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Improvement in Piping – Suction & Header
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Installation of Energy Efficient Motors
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Enhancement of Contract Demand- Incase of shortfall
Case Studies
Energy Saving Potential in Four Towns in
Karnataka
Type of
Proposal
Nos.
Saving
Potential, Rs.
Lakh
Investment
Required, Rs. lakh
No Cost
(immediate)
20
67
0
Short Term
(1 -12 months)
18
178
78
Medium Term
(1 – 2 years)
6
Total
44
(Payback: 5 months)
63
77
(Payback: 15 months)
308
155
(Payback: 6 months)
Energy Saving Potential in Two Towns in
Andhra Pradesh
Type of
Proposal
Nos.
Saving
Potential,
Rs. Lakh
Investment
Required, Rs. lakh
No Cost
(immediate)
10
31.1
0
Short Term
(1 -12 months)
6
31.0
20
Medium Term (1
– 2 years)
2
Total
18
(Payback: 8 months)
1.8
2.5
(Payback: 17 months)
63.9
22.5
(Payback: 5 months)
Watergy Seed
Saving Potential – Pune city
No. of
Recommendati
on
Annual
Saving
Potential
Rs. Lakh
Cost of
Implementation
Rs. Lakh
Payback
Period,
months
Short term,
11
103.7
32
4
Medium term
4
42.1
55
16
Total
15
145.8
87
8
Type of
Proposal
Pune municipal corporation
Saving Potential - Vizag
Type of Proposal
Short term,
(payback less
than 1 year)
Medium term,
(payback 1-2
years)
Total
No. of
Recommendation
Annual Saving
Potential
Rs. in lakh
Cost of
Implementation
Rs. ( Lakh)
Payback
Period,
months
17
65.93
38.7
7
3
6.83
16.5
29
20
72.76
55.2
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ECO III & GUDC
Municipal Energy Efficiency - Technical
Assistance
The Stakeholders
Utility/Discoms
FIs
ECO-III
INTERMEDIARIES
IL &FS
GUDC
Municipalities
ULB’s
GEDA
ECO III – Technical Assistance to
GUDC
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Provide technical advisory services to GUDC and IL&FS
Ecosmart for the short-listing of Energy auditor and ESCOs
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Evaluation and final selection of EA firms & ESCOs to work
with the initial 12 ULBs in phase 1
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Assist in preparation of tender and other associated
documentation( EOI, RFP, PC) to support ULB’s
contracting with EA firm & ESCOs
ECO III – Technical Assistance to GUDC
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Assist in defining technical specifications for procurement
of EE equipments for implementation of energy saving
measures.
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Build capacity of municipal engineers and officials in EE
audits and implementation to become informed decision
makers.
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Create a municipal outreach model that can be replicated
in all ULBs of Gujarat.
Technical Assistance – Ongoing
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Strategy for the Implementation of EE program in 161
ULB’s
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Phase 1 – Preliminary Audit – Baseline data collection and
identification of No/Low cost EE measures
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Phase 2 – Investment Grade Audit and Implementations
under performance contacts ( ESCO Mechanism)
Technical Assistance – Under Progress
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Short listing of Energy audit firms for phase 1 initiative
Defined the scope of Work and other guidelines for
preliminary energy audit
Participated and discussed the project during pre-bid
conference with EA firm and ESCOs
Establishment of evaluation criterion
Developed standardized template for
 Request of information from Energy audit firm
 Request of basic data from ULB’s
For More Information
Pradeep Kumar
Sr. Technical Specialist
Alliance to Save Energy - India
Bangalore
India
0-9845775008
pkumar@ase.org
www.ase.org or www.watergy.org