Institution of Engineers Pakistan, Rawalpindi - Islamabad Centre, 17th Dec, 2011
ENERGY MANAGEMENT SOLUTIONS & CHALLENGES
By
Engr Arjumund A. Shaikh
AKTS Consultants Group - World Bank
Former Member Technical - NTC Board Ministry of IT & Telecom,
akts@aktelekom.com,
www.aktelekom.com
Ph:92 51 2652121, Cell: 92 300 8552729
EM Structure – Packages
17-12-2011 (arjumund)
1. Energy Scenario
 Scenario & Perception on Energy crisis
 Root causes of Crisis ( Linked Energy Saving solutions)
2. Energy Management (EM)
– Energy Sustainability:
Sustainability Objective w.r.t Role of Building codes
Energy Savings Potential Identification: Major Sectors
Building Management system(BMS) & Saving Measures
Energy Saving in Industry & Assessment Methodology
3. Energy efficient Technologies-Pakistan potential
4. Key Challenges in RET
5. Energy Solutions (short term & Long terms)
6. “Climate Change” Global impact on Energy?
7. Panel Discussion
1.EXISTING SCENARIO
&
Our Perception
about
Cash Bleeding Energy Industry
INSTALLED CAPACITY
Sector wise Consumption
(i) Energy Consumption:
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Industrial Sector:
Agricultural Sector :
Commercial Sector:
Government Sector:
House hold :
29.1%
14.3%
5.5 %
7.4%
44.2%
(ii)Cost per Kwh in Rupees from:
Terbala: 0.71,
Ghazi Broatha: 1.16,
Rental: 16+
Basha: 4.95
Worldwide Oil Reserves--
World Energy Book
• Peak of oil production expected:
2010-2030.
• World oil economic depletion:
2035-2084
• BUT: Oil use is growing:
18%
Energy Crisis Reasons & Root causes
Financial Constraints
Strategic Planning and Technical Failures
 Lack of Investments
Solution through
Energy Management
Cash bleeding Sector: FINANCAIL
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Excessive Line Losses/Y:
RS 40 B
Loss due to Slow Bill Recovery/Y: RS 80 B
Late Payment Surcharge to IPP/M:RS 24 B
Fuel adjustment Charge Loss/Y: RS 24 B
Decrease supply of Gas to P. H/Y: RS 72 B
Soaring Circular debt:
RS 300 B
PSO Arrears:
RS 165 B
No heed to recover outstanding: RS 300 B
RS 1000B
TECHNICAL: Poor Planning
1. Short Gas Supply to Power/ Industry : (Reported)
– Power sector ( IPP &Nuclear):
28% (against 43%)
– Industry:
26% (against 39%)
– Fertilizers:
14%
– Domestic:
17%
2. GAS Short fall:
• Unaccounted for Gas (UFG) Pipe Loss increased to 26%;
• Gas surcharge : not spent on Infra- Development;
• Foreign Investment declined: Decrease in supplies;
3. GAS Crisis in Textile Industry means:
• Rs 8 B /year TAX decrease ;
• Currency printing for Economy: increased inflation;
• $14 B Export, $15 B Jobs at Stake-;
(Industry priority)
TECHNICAL:
• Resource exploitation- Poor Planning :
cont --
• ENERGY POTENTIAL: (Nepra site)
 Hydel Potential: 48,000 MW( India 35%, SriLanka 60%, Pak 16%) slide
 Coal Potential : 20,000 MW ( China 70%, India 56%, Pak 0.11 %) slide
 Nuclear Energy: 8,8000 MW
( 690 MW)
 Wind power Potential: 346,000 MW ( 170 MW against 2850 MW by 2015)
 Solar Power Potential: 2.9 Million MW ( 80 MW against 1600 MW by 2015)
 Non Implementation of Long Term Power Generation (Rental Power)
 Low water levels , Dams De-silting, Water for irrigation, Stolen water etc
 Mismanagement: (Nandipur & Chhichokimalian )
• Load Survey-Industry, A/C,T-wells Demand Forecast (14%) ;
• High transmission & Electric Distribution Losses;
• Dormant : Energy Conservation/Saving
(Ration, Rotation);
• Incompetency: Lacking decisions, Administrative Lethargy slide
• Imbalance in Energy Mix (Priorities);
slide
National Energy priorities-Indicators
2. ENERGY MANAGEMENT
Energy Management-Statement
Various studies recommend that Energy sector be driven
by two policy considerations: (i) Energy efficiency and (ii)
good governance. This objective is met by improvements
in energy efficiency and energy efficient technologies
that minimize adverse impacts on the environment;
• Definition: It is a Program to rationalize energy use,
reduce consumption, cut energy costs & carbon
emissions and ensure implementation;
• Watt” saved is a “Watt” generated, Better, to much
cheaper to save, than to generate a “Watt”;
• This means to identifying the areas of wasteful use of
Energy & taking steps to reduce the waste to a bare
minimum.
Sustainable Industrial & Commercial Buildings
Conservation Program
ENERGY SAVING POTENTIAL- Enercon
• Building:
30%
• Industry :
25%
• Agriculture:
20%
• Transport:
30%
On Average 26%
• Achievable saving for Pakistan estimated
through EE/EC: Over $ 3.2 Billion / year
(E.M .Program features )
Building Management System (BMS)
• BMS is an energy efficient Web-based platform Building
system to provide:
• Integration: Geographically dispersed sites with one N/W
• Intelligent integration: HVAC, Access Control, CCTV,
Lighting, Energy Management subsystems etc
• Acknowledge and review alarms with alarm processing
and routing, e-mail paging etc
• Serve platform for N/Ws control, monitoring, alarming,
database and log management of all building functions
• Serve cost-effective infrastructure for convergence with IT
networks
(Smart Building)
• .
Building Codes- greatest potential
Building codes cover Energy efficiency aspects of Buildings:
• Heating, Ventilation, air-conditioning(HVAC) subsystem
 Lighting, Insulation, Glazing subsystem
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Power and distribution subsystem
Pumping subsystems.
Energy, Domestic Appliances & Security Standards
Benefits of Energy Codes practices :
 Assists in Energy Saving/ Conservation, Lowers Energy Bills of users
 Helps Save investment in Power generation
 Extends equipment life and reduces Maintenance cost
 Carbon Credits Claims: due emission reduction from Conservation
 Beneficial to National Budget and Economy
• Based on above considerations & abnormally high losses, the
answer does not lie in increasing supply but from better
Energy management- to deliver more at Lower cost ;
• Buildings, Consumer behaviour and transport offer the
greatest potential for energy efficiency (EE)
ENERGY MANAGEMENT – Energy Audit
 Energy Management(EM) Policy: provides sense of direction to
the Program and fixes Energy standards of Manufacturing,
System performance and Environments;
 Methodology: Conducting Energy performance Audit and
Framework of Recommendations for energy efficiency ;
 Monitoring: It is foundation On which EM is built by interviewing,
Examining energy profile, usage, energy costs, M/c load, Data col
 Training & Motivating Staff: Energy awareness and change in
attitude and behavior. Education is Keys to the success to EM;
 Benchmarking: Means to Fixing indicators of Energy, Buildings,
Environment, Industry/Industry services, Domestic Appliances;
 Reporting: Briefing, Recommendations, Implementation, Review;
 Analysis: E.M is continuous process of improvement
performance, targets to be regularly evaluated.
ENERGY CONSERVATION POTENTIAL IN PAKISTAN
INDUSTRIAL SECTOR
AGRICULTURE
PAPER
GLASS / CERAMIC
COMMERCIAL BUILDING
FOOD & BEVERAGE
TEXTILE
FERTILIZER
CEMENT
IRON / STEEL
PETROCHEMICAL
DOMESTIC
PUBLIC UTILITY SERVICES
SAVING POTENTIAL (%)
5-15
10
10-15
10-25
10-30
14-30
16-30
20-40
23
35
10-15
10
Typical Energy Saving Areas: in Industrial Sector
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Energy Savings and Electric Motors, HVAC Controls
Energy Savings and Compressed Air Systems
Energy Savings and Steam Generation
Boilers
Energy Savings in Steam Distribution Systems
Energy Savings and Furnaces
Energy Savings Through Heat Recovery
Energy Savings Through Cogeneration
Industry Regulatory Measures, producing Energy Saving:
– energy performance standards
– building codes for the New Buildings
– Regulatory environment conditions (CO2 )
Problems identified-Energy Audit
• Absence of Energy Management systems,
• Lack of top management commitment,
• Energy performance codes for Equipment(compressors, cooling, towers, boilers, pumps and fans)
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Lack of awareness about savings potential,
Lack of data, and problems of benchmarking.
Shortage of quality energy professionals.
Training in Energy efficient Program initiatives
Realization of Potential Savings
3. ENERGY EFFICIENT TECHNOLOGIES
(RENEWABLE TECHNOLOGY)
The Need for Renewable Energy
Projected Depletion of Current Fuels
• OIL Reserves –41 Years
• Natural Gas –40 Years
• Coal –164 Years
RENEWABLE ENERGY
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Solar
Wind Mills
Biogas
Geothermal
Wave Energy
Biomass
Bio fuel
Hydropower
Solar PV –Status
Potential of Renewable Energy:10,000 MW
Solar installed (for lighting & water pumping ):200
Capacity varies bet:
200–500 W.
Total PV generation capacity: 80 kW.
Number of Solar water heaters:100
AEDB RESOLVE
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Wind Energy
40% of the Wind resource is in UK
China Number One in Wind
Wind Power Potential:50,000 MW
Wind turbine capacity: 0.5-1.5kw
Issues: Land, Storage, Maint, Availablity
Types of wind turbine:
-Horizontal axis Turbines
-Vertical Axis Turbines
• Wind turbines installed : 1300 (for 430 Coastal
houses)
AEDB & PCRET-Biogas
(i) Number of Biogas cook stoves distributed by PCRET with
annual financial savings of fuel wood worth of Rs. 86
million (US$ 1 million):
90,000.
(ii) Number of Biogas plants installed, for meeting domestic
fuel needs of households:
1600 Plants
 Number of Plants installed by AEDB :
1,200 for
domestic needs in the rural area of the Punjab province.
 Capacity of bet 5-15 cubic meters per day.
 Annual biogas generation capacity:
2.5 million m3.
 Foundation for Integrated Development Action (FIDA) &
RSPN constructed :
2047
 Initiative for Rural and Sustainable Development (IRSD) &
UNSP:
150
4. KEY CHALLANGES
In
Renewable Energy
Technologies
CHALLENGES: RET
(a) Well defined Renewable Energy policy
(b) No technical and Quality standards
(c) Cash Flow and funds Availability on target;
(d) Non-operational One window : Site availability,
administrative lethargy, delays in approvals;
(e) Training needs, capacity building of Stakeholders ;
(f) Community participation with overall responsibility
supported by well equipped Workshop for O& M;
(g) Absence of Regulatory Authority for RET
(h) Pilot projects a model for launching a larger program;
–RE Tariffs and Feed-in tariffs,
– Tax, Carbon credits, Import duties Sales tax,
– Creation of Renewable energy funds and R&D
(I) Lack of political will and EE incentives-greatest barriers
5. ENERGY SOLUTIONS
(SHORT & LONG TERMS)
Short Term solution/measures
1.
2.
3.
4.
Capacity utilization by Overhauling & Capacity addition;
Energy Mix Policy Focus: Coal, Hydel and Renewable Energy
Encourage Investment: Law N order improvement;
Energy Policy: Investment friendly/ Power supply Priority/ incentives
to users/ low interest finances & Access to credit to farmers/ Competent
Professionals/ Private sector Participation/ Awareness campaign etc;
5. Top most Priority: Renewable Energy Technologies
6. Energy efficiency /Saving Measures: Legislation needed
Long Term solution/Measures
7. Coal reserve (33 Trillion tons) & Hydel Energy Exploitation
8. Rehabilitation of outdated Transmission & distribution
9. Infrastructure Augmentation/Upgrading and Development
10. Better Urban Planning and Deployment of Transport
11. Government’s creditability & Agencies facilitation
Costs of Climate Change: Impact on Energy
World Bank Studies reveal that:
• 40% of development aid investment is at risk from
climate change
• Humanitarian costs could rise by 200% by 2015
• “Weather disasters” could cost as much as a trillion
dollars in a single year- by 2040
• Projects Review cost of climate change estimates to
be between 5-20% of global GDP;
CPD PROPSED PROGRAM- SERIES 2012
1. Engineering Project Management
2. Change Management and Organization Development
3. Project Human Resource Management
4. Total Quality Management
5. Project Scheduling Techniques
6. Environmental Impact Assessment
7. Interpersonal Communication Skills for Engineers
8. Disaster Management: Role of ICTs
9. Renewable Energy alternatives- Way forward
10. Renewable Energy Resources-Road to sustainable Growth
11. Meeting the Energy demands-Viable options
12. Promotion of Renewable Energy Technologies through
Private sector participation
13. Energy Efficient solutions-Way forward
14. Overview of Bio-Energy
Energy Codes
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Energy Codes Benefits:
– Lower Energy Bills
– Reduce Need for New
– Environmental Benefits
• Energy Codes include
– Lighting
– Insulation
– Glazing
– Heating and Cooling Equipment
– Other Energy Efficiency Measures
• Legal coverage & Stringent implementation measures
with close cooperation of Civic bodies
Sustainable Energy-Objectives
• Objectives :
1. Sufficient availability: On demand over the period,
2. Cost-efficient: Oil price index portrays increasing complexity
in forecasting the future trend. Should not Lacks in security;
3. Environmentally friendly: largely affected by increase in
temperature and green houses gases have cruel impact on
future developments;
4. Complies with: International standards in energy efficiency
, Technology and environment;
5. Compatibility: Working with a common hardware and
Energy software platform.
Resource Efficient Facilities
Building Comfort Fire safety
Electronic Security
Comfort and
energy
Efficiency
Protecting people,
assets and
processes
􀂃 HVAC
controls
􀂃 Valves, actuators
􀂃 Energy services
and solutions
Protecting life
and Property
􀂃Access control
􀂃Fire detection
􀂃Extinguishing
􀂃Evacuation
􀂃Video surveillance
􀂃Intrusion detect
protection
􀂃Central monitoring
Energy Savings - Building
• Envelope materials focus on developing improved
insulation of walls and roofing materials;
• Windows and Doors : contribute significantly to the
whole building design forming heating and air
conditioning loads;
• Ventilation in Buildings; Improving air efficiency and air
flow ducts;
• Solid-state lighting (SSL- LEDs & Organic OLEDs) technology,
having potential to cut lighting energy usage,
contributing significantly to climate change solutions.
BIOMASS ENERGY
• Biomass: Consists of the organic material that
makes up living organisms
• Biomass Energy: From plant and animal matter,
such as charcoal, wood, manure, crops. These can
be burned to generate heat or electricity
• Biomass Fuels: some biomass can be converted
into fuels:
– Ethanol: from fermentation (corn) -can be added
to gasoline and used in “Flex-Fuel” cars
– Biodiesel: from vegetable oil, grease, animal fatmixed with ethanol, used in diesel engines