Pre-Bid Conference on
BASELINE ENERGY AUDIT
under
Perform, Achieve & Trade (PAT) Scheme
S P Garnaik
Energy Economist
Bureau of Energy Efficiency, Ministry of Power, GOI
NATIONAL MISSION ON
ENHANCED ENERGY EFFICIENCY (NMEEE)
 The National Action Plan on Climate Change was
released by Honorable Prime Minister of India in June
2008
 The Action Plan Outlines 8 Missions including National
Mission on Enhanced Energy Efficiency (NMEEE)
 The Mission has outlined specific goals
Chronology of Events of NMEEE
 30th June 2008 : Hon’able PM releases the National Action
Plan of Climate Change
 September 2008 : NMEEE endorsed by steering Committee,
MoP
 3rd October 2008 : Discussion on Draft outline in PMO
 14th Nov 2008 : First consultation workshop at Mumbai
 24th August 2009 : PM’s council on Climate Change approves
NMEEE in principle
 1st December 2009 : EFC recommends the implementation
plan of NMEEE to Cabinet with a financial outlay of Rs. 235.35
crores
 May 2010 : Cabinet approves the financial outlay
 Ammendment to EC Act, 2001 passed in parliament
NMEEE – Four New Initiatives
NMEEE
PAT
Energy
Intensive
Industries
Targets for
Mandatory
Energy
Saving
MTEE
Energy
Efficient
Appliances
BLY
SEEP
DSM
EEFP
Stimulate
Funding for
ESCOs
FEEED
Fiscal
Instrument
for EE
PRGF
VCF
Public
Procurement
PAT Scheme : Background & Scope (1)
 Covers 685 designated consumers in 9 sectors
 All DCs consume about 240 mtoe energy i.e. about 60% of total energy
consumption of the country
 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
 National Target = 10 mtoe at the end of 1st PAT Cycle ( April 2011 – March
2014)
PAT Scheme : Background & Scope (2)
 Large band-with in Specific Energy Consumption (As per the BEE sectoral
Study)
 Energy Usage Pattern is varying extremely due to various diversities
 Hence, the targets would be “Plant Specific”
PAT Legal Framework
•Furnish report of energy consumption to the Designated Authority of the State as well as to
BEE (section 14(k)).
•Designate or appoint an Energy Manager who will be in-charge of submission of annual
energy consumption returns of the Designated Agencies and BEE (section 14 (l)).
•Comply with the energy conservation norms and standards prescribed under section 14
(g) of the Act.
•Purchase Energy Saving Certificates (ESCerts) for compliance to section 14 (g) in the event
of default. The Act has been amended with the addition of new sub-section 14A to enable
this and section 14A(2) allows such trading. EScerts are defined by adding a new subsection 2(ma).
•Monitoring and Verification of compliance by Designated Energy Auditors (DENA) which
will be prescribed the Government/ BEE under section 14A/13 (p) of the Act.
•Excess achievement of the target set would entail issuance of ESCerts under section
14A(1).
•Penalty for non-compliance being Rs. 10 lakhs and the value of non-compliance measured
in terms of the market value of tones of oil equivalent by inserting a new section 26(1A).
•BEE to be the overall regulator and dispute resolution agency and Energy Efficiency
Service Ltd. (EESL) to be the process manager.
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Verification of Data Submitted by DCs
•
Production
•
All Energy Sources
Item
Data
Unit
Source of Data
Production
-
MU / MT
Document
Purchased Elc.
-
MU
Document
All Energy Source
-
-
Document
[ Carefully investigate the source of data as the same source will be used
during final verification ]
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Define the Plant Boundary (Gate-to-Gate Concept)
•
Physical Boundary
•
Process Boundary
•
Investigate the exclusions like colony power, construction related, internal
transportation etc. with the submitted data
[ The plant boundary needs to be discussed with Plant Management ]
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Develop Process Flow Diagram
•
Define sub-processes (Block Diagrams)
•
Put operating parameters like Temp / Pressure / Flow / mass etc. in the process
flow diagram with designed value
 Develop the energy balance diagram of each sub-process
Sub-System
SS#1
SS#2
SS#3
SS#4
SS#5
SS#6
SS#7
Name
Rectiformer
Potline
GAP
Bake Oven
Rodding Shop
FTP
Cast House
Each Sub-System to be Studied for…
 Brief description of the sub-system
 Material Input & Output
 Energy (Elect./Thermal) Input & Output
 Technical Parameters for Energy Efficiency
 Listing of major static and rotating
equipments
 Technology up-gradation since past years
 SEC
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Find out major energy consuming equipments in each sub-system
•
Investigate the technology
•
List out critical parameters which affect the efficiency and energy consumption
•
Operating vs. Designed value
[ Measurements may be required at this stage. However, past energy audit
reports, performance assessment reports may be referred to ]
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Example : Pot-line of an Aluminium Smelter
Technology : Pre-Bake
Parameters :
Pot capacity
Pot voltage
Current Density
ACD
Anode Effect Factor
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Investigate All options related to
•
Waste Heat Recovery
•
Co-Generation
•
Fuel Switch
•
Use of EE equipment / System
[ Detail discussion with management required at this stage ]
BASELINE ENERGY AUDIT
(Methodology of Scope of Work)
 Review the Past Energy efficiency Measures
Technology
Sub-System
Category
Energy
Saving
Monetary
Saving
Investment
TU
PM
O&M
Others
 Review the Future Energy Efficiency Approach/Strategy
• Detail discussion with plant management required
 Preparation of Audit Report
• Potential evaluation with tentative cost-benefit analysis
Thanks ….
For further information Please Contact
S.P.Garnaik
Energy Economist
Bureau of Energy Efficiency
Ministry of Power, GOI
4th Floor, Sewa Bhawan, R.K.Puram
NEW DELHI – 110066
Ph.: 011-26179699 Fax :26178352
Email : sgarnaik@beenet.in
Mission Goals
 Market-based approaches to unlock energy
efficiency opportunities, estimated to be
about Rs. 74,000 Crores
 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
The PAT Scheme
The market based mechanism to
enhance the cost effectiveness in
improving the Energy Efficiency in
Energy Intensive industries through
certification of energy saving which
can be traded
Market Transformation for Energy
Efficiency (MTEE)
 Accelerating the shift to energy efficient
appliances in designated sectors through
innovative measures to make the
products more affordable.
Energy Efficiency Financing Platform
(EEFP)
 Creation of mechanisms that would help
finance demand side management
programmes in all sectors by capturing
future energy savings.
Framework for Energy Efficient Economic
Development (FEEED)
 Developing fiscal instruments to promote
energy efficiency
List of DCs
Industry Sector
Annual Energy
Consumption Norm to be
DC (mtoe)
No. of Identified DCs
Aluminum
7500
11
Cement
30000
92
Chlor-Alkali
12000
23
Fertilizer
30000
22
Pulp & Paper
30000
70
Power
30000
154
Iron & Steel
30000
110
Textiles
3000
197
Railways
30000
8
6
Bihar
4
23
West Bengal
4
Uttaranchal
39
U.P
6
Tripura
Tamilnadu
Rajasthan
41
Punjab
Pondichery
46
Orissa
1
New Delhi
11
Meghalaya
57
Maharashtra
31
M.P
14
Kerala
Karnataka
4
10
Jharkhand
16
HP
Haryana
60
Gujarat
Goa
Chhattisgarh
6
Assam
Andhra Pradesh
State-wise DCs (2009-10)
99
74
57
47
25
4
Estimated Energy Consumption
in DCs
Sector
Power (Thermal)
Integrated Steel
Cement
Fertilizer
Sponge Iron
Textile
Aluminium
Paper
Chlor-Alkali
TOTAL
MTOE
160.3
26.98
14.47
11.95
9.1
3.5
2.42
1.38
0.43
230.53
About 55% of DCs
Contribute 96% of Total
Consumption
About 45% of DCs
contribute rest 4% of
Total Consumption
Railways : 9.8 MTOE additional
Target in PAT
Target is defined as the % reduction of ‘Specific Energy Consumption (SEC)’ from
Baseline value.
All forms of Energy
Plant System
Boundary
E
S
E
C
Product
SEC = E / P
Baseline SEC
Reduction in SEC
Target SEC
Expressed in %
Y1
Y2
Y3
P
Energy Consumption (MToE)Share Among DCs
Power (Thermal)
Integrated Steel
Cement
4%
6.2%
Fertilizer
2%
1%
Sponge Iron
0.6%
Textile
Aluminium
Paper
Chlor-Alkali
0.18%
5.1%
11.65%
69.23%
Sectoral studies by BEE on ‘Setting Up of Sectoral Bandwidth for
DCs’ have revealed the impact on SEC due to above diversities
Sector
Power plant
Fertilizer
Cement
Range of SEC
2300 – 3400
5.86 – 9.11
665 – 900
Sponge Iron
Gcal/T of Urea
Kcal/Kg of Clinker (Thermal)
66 – 127
Integrated Steel
kcal / kwh
KWH/ T (Elect)
6.15 – 8.18 Gcal / tcs
4.4 – 7.6 Gcal / T (Thermal)
72 – 135 KWH/T (Elect)
Aluminium (Smelter)
15875 – 17083 KWH/T
Aluminium (Refinery)
3.28 – 4.12 MKcal / T of Alumina
Pulp & Paper
Textile
25.3 – 121 GJ/T
3000 – 16100 Kcal/kg (Thermal)
0.25 – 10 KWH/Kg (Elect)
Chlor-Alkali
2300 – 2600 kwh/ T of caustic soda
Reasons for Large Energy Usage
Bandwidth
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.
a)
a)
a)
a)
a)
a)
Factors of Diversity
Raw Material Input
Quality of Raw Material / Fuel
Process & Technology
Final Product output
Vintage
Capacity Utililization
Most Affected Sectors
Pulp & Paper, Fertilizer, Power Plant, Textile
All sectors
Aluminium, Iron & steel, Chlor-Alkali, Paper
Textile, Iron & Steel, Aluminium
All Sectors
All sectors
Approach for Setting Targets Depends upon
the Objective of the Scheme
Total Saving Objective = 10 mMTOE
• Setting Sector Targets based on available saving
potential of Industries and Program Objectives
Sector
SN
Energy
Consumption
Share of
Consumption
(mMTOE)
160.30
(%)
66.64%
Apportioned Energy No. of identified
reduction
DCs
(mMTOE)
6.66
1
Power (Thermal)
2
Iron & Steel
36.08
15.00%
1.50
110
3
Cement
14.47
6.02%
0.60
92
4
Fertilizers
11.95
4.97%
0.50
22
5
Railways (Approximated)
9.00
3.74%
0.37
8
6
Textile (Approximated)
4.50
1.87%
0.19
197
7
Aluminium
2.42
1.01%
0.10
11
8
Paper & pulp
1.38
0.57%
0.06
70
9
Chlor-Alkali
0.43
0.18%
0.02
23
Total
240.53
100.00%
10.00
154
687
Example : Baseline Estimation
Name of Unit
Place
Total Installed Capacity
ABC Ltd.
XYZ
1600000 TPD
Particulars
Installed Capacity
Actual Production (Cement)
Unit
Tonnes
Tonnes
Capacity Utilization
Average in last 3 yreas
Deviation from Average in last 3 yras
Total Energy Input
Total Energy Consumption
Gate-to-Gate SEC w.r.t. cement
Sector :
Cement
2005-06
1200000.00
995000
2006-07
1200000.00
1146699
2007-08
1600000.00
1319800
2008-09
1600000.00
1325000
2009-10
1600000.00
1199000
%
%
%
82.92
95.56
82.49
74.94
3.01
82.81
80.08
3.41
Million Kcal
919757.4
985287.9
989421.4
1062985.0
977621.3
MTOE
Kcal/kg
91976
924
98529
859
98942
750
106299
802
97762
815
Base Year
2009-10
Average Capacity Utilization
%
80.08
Base line SEC (Gate-to-Gate)
kCal/kg
789
6.42
Example : Target Setting (1)
Production (in Tonnes)
Plant
Name
Estimated SEC (in MTOE/ ton)
Relative
SEC
Total
Energy
consumpti
on
(in MTOE)
%
Target
To be
Energy
Saving
2005-06
2006-07
2007-08
Average
production
(MT)
Plant1
3,62,793
3,68,867
3,78,157
3,69,939
1.275
1.272
1.277
1.274
1.000
4,71,455
X
4714.55x
Plant2
3,58,954
3,58,734
3,59,213
3,58,967
1.364
1.365
1.362
1.364
1.070
4,89,546
1.07X
5238.14x
Plant3
76,867
2,07,741
2,50,981
1,78,530
1.569
1.355
1.276
1.400
1.098
2,49,920
1.10X
2749.12x
Plant4
66,347
73,008
99,406
79,587
1.425
1.452
1.408
1.428
1.121
1,13,679
1.12X
1273.2x
Plant5
NA
NA
37,635
37,635
NA
NA
1.780
1.780
1.397
66,995
1.40X
937.93x
Total
2005-06 2006-07 2007-08
Average
SEC
13,91,594
14912.9X
Example : Target Setting (2)
Total Saving
Target
Saving
X
14912.94x
MTOE
62000
MTOE
4.15
Baseline SEC
Target (%)
To be SEC
To be MTOE
Plan1
1.274
4.15
1.22
4,51,889
Plan2
1.364
4.44
1.30
4,67,806
Plant3
1.400
4.56
1.34
2,38,527
Plant4
1.428
4.65
1.36
1,08,391
Plant5
1.780
5.80
1.68
63,111
Plant Name
Total energy consumption at the end of 3 years (in MTOE)
13,29,725
Total present energy consumption (in MTOE)
13,91,594
Energy saving during the period
61,870
%
Baseline SEC
Number of Clusters depend upon the Bandwidth of
Baseline SEC
10
9
8
7
6
5
4
3
2
1
0
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 Plant 7 Plant 8 Plant 9 Plant
10
Plant
Baseline SEC
10
8
6
Cluster 2
Cluster 3
Cluster 1
4
2
0
Plant 1
Plant 9
Plant 4
Plant 3
Plant 6 Plant 10 Plant 8
Plant
Plant 2
Plant 7
Plant 5
THE PAT SCHEME ….. Approach
INDUSTRY (DC)
Review of Present Energy Scenario &
Bandwidth (Completed)
Establish Baseline
Development of Baseline Formats
with System Boundaries
Data Collection, Compilation & Analysis
Verification of Data
Set Targets for SEC Reduction
Technology Transfer, EE Technology, R&M, R&D
Achieve the Target
Verification Protocol
Trade the higher achieved saving through E-Certs
Activity Flow Sheet
Baseline & Target
Setting
Designated
Consumer
Baseline Format
Design
Finanalization
of DC List
Getting information
through “Form#1”
Prepare PAT
Assessment
Document (PAD)
Getting
Information
Through Base Line
Format
Issue of e-Certs
after successful
M&V
BEE
Data Compilation/
Evaluation
Verification of PAD
through DENA
Target Setting
[Declaration of Base
Year, Target Year ]
Validation of PAD
through DENA
Recommendation
for e-certification
Target Setting for Power Station
Variation in Net Station Heat
Rate from Design Net Heat
Rate
Reduction Target for %
deviation in the Net
Station Heat Rate
% Reduction
Target in Net
Station Heat Rate
Upto 5%
10%
0.5
More than 5% and upto 10%
15%
0.75 to 1.5
More than 10% and upto 20%
20%
2.0 to 4.0
More than 20%
25%
5 and above
Legal Framework
•Furnish report of energy consumption to the Designated Authority of the State as well as to
BEE (section 14(k)).
•Designate or appoint an Energy Manager who will be in-charge of submission of annual
energy consumption returns of the Designated Agencies and BEE (section 14 (l)).
•Comply with the energy conservation norms and standards prescribed under section 14
(g) of the Act.
•Purchase Energy Saving Certificates (ESCerts) for compliance to section 14 (g) in the event
of default. The Act has been amended with the addition of new sub-section 14A to enable
this and section 14A(2) allows such trading. EScerts are defined by adding a new subsection 2(ma).
•Monitoring and Verification of compliance by Designated Energy Auditors (DENA) which
will be prescribed the Government/ BEE under section 14A/13 (p) of the Act.
•Excess achievement of the target set would entail issuance of ESCerts under section
14A(1).
•Penalty for non-compliance being Rs. 10 lakhs and the value of non-compliance measured
in terms of the market value of tones of oil equivalent by inserting a new section 26(1A).
•BEE to be the overall regulator and dispute resolution agency and Energy Efficiency
Service Ltd. (EESL) to be the process manager.