Business Potential of Energy Auditing Business Potential of Energy Auditing in HT/EHT Industries in Keralain HT/EHT Industries in Kerala

Presented by,Albi Thomas VarkeyPrem Sankar CDhanya AlexShameera Shiju

Organisation

• Energy Management Centre

Srikrishna Nagar

Sreekaryam

• External Project Guide

Dr. R. Harikumar

Energy Technologist ,EMC

Contents

IntroductionEnergy AuditingKerala Energy ScenarioEA Market analysisSurvey FindingsRecommendationsConclusion

INTRODUCTIONINTRODUCTION

Background Information

• Government made mandatory to conduct energy audits once in 3 years on HT / EHT /High Rise buildings to regulate and monitor consumption of electrical energy by issuing a G.O. (Rt) No. 2/2011/P.D. dated 1.1.2011.

• KSEB is suggested 20% power cut to industries on Dec 2012. They have to reduce consumption to 80%.

Stake holders

• EMC ( Government )• Energy Auditing Firms{21 nos}• Energy auditors/managers• HT/EHT Industry• BEE• Equipment Manufacturers• Financial Institutions• KSEB/KSERC

Objectives

• Study of business potential of energy auditing in HT/EHT industries in Kerala.

• Forecasting the energy demand of HT/EHT industries by 2020.

• Costs benefit analysis of energy auditing in HT/EHT industries.

• Mechanism for promoting energy auditing• SWOT analysis of energy auditing sector

Significance of Study

• Boosting the new entrants into the market

• Identify the future business opportunities in

energy audit sector

• Fostering regional players

Limitations of Study

• Opinion of Industries are not taken in to account due to -

– Lack of awareness of energy auditing

– Time and Geographical constraints

• This study is based on possible future scenario

Acts and Policies

• Energy Conservation Act 2001

• Government Order for Mandatory Energy

Audit for HT/EHT and High Rise Buildings

• Electricity Act 2011

• ISO 50001 Energy Management Standards

ENERGY AUDITINGENERGY AUDITING

Why Energy Conservation

• Energy loss in any industrial plant is inevitable• Its economic and environmental impacts are high

• Level of energy efficiency a plant or process can achieve is inversely proportionate to the energy loss that occurs.

Why Energy Conservation in Kerala

• High demand for Electricity in Kerala• Failure of Monsoon in Kerala• Relying on Load shedding , Central Power Pool• Early stages in Renewable energy production• Investor (Industrial) Friendly Concern• Rising cost of power (Expected to rise further)• 1Unit Saved equals 3Units Generated

• Transmission Loss (15.65%)• Inefficient Electric Equipments

What is an Energy Audit?

• An energy audit is an inspection, survey and analysis of energy flows for energy conservation in a building, process or system to reduce the amount of energy input into the system without negatively affecting the output(s). (Wikipedia)

Types of Energy Auditing

» Electrical Auditing

» Thermal Auditing

i) Preliminary Audit

ii) Detailed Audit

Preliminary Audit

• Establish energy consumption in the organization• Estimate the scope for saving• Identify the most likely (and the easiest areas for

attention• Identify immediate (especially no-/low-cost)

improvements/ savings• Set a ‘reference point’• Identify areas for more detailed study/measurement• Preliminary energy audit uses existing, or easily

obtained data

Detailed Audit

• Phase I - Pre Audit Phase

• Phase II - Audit Phase

• Phase III - Post Audit Phase

Why EA in Business

• Significant reduction in Production cost – Through reduced electricity bills and reduced fuel

consumption

• Improved Plant Performance

• Reduced final product cost

• By a successive audit ,Industry can save 10-20% of total consumption

Certified Energy Auditor

• By the enactment of Indian Energy Conservation Act, 2001. it is mandatory for the designated consumers to designate or appoint an Energy Manager (under clause 14(l)]

• BEE has been empowered to specify the qualification criteria and procedures for the certification of Energy Managers and qualifications for Accredited Energy Auditors

General Procedure for Audit

• Preliminary Site Analysis

• Measurement and Data collection

• Data analysis

• Energy-saving opportunities identified 

• Pay back period is calculated

• Report Preparations

• Implementation

• Post Audit review

Successful Energy Audit Examples

• Hindustan News Print Ltd, Kottayam – 5 MU 3.25Cr

• United Breweries Palakkad -7.57 MU -4.92 Cr

1.34 MU -0.87Cr 2.5 MU -1.62Cr

KERALA ENERGY SCENARIO

Main features of the Kerala power system

• High dependence on Hydro Electric Projects (29hydro ,2 thermal ,1 wind)

• Vagaries of Monsoon has resulted liability of Rs 2500.00 crore.

• About 51% of the total energy consumption is by the subsidized categories like domestic, agricultural categories etc

• New major hydel projects could not be developed in the State

• Average cost of supply=5.44Rs/kWh

• Revenue Gap=Total inc- Total exp=-1934Cr

Source of Energy in Kerala

I KSEB’s own generating stations

a Hydel 8058.01 MU

b Thermal 290.70 MU

c Wind 2.03 MU

Total of I 8350.74 MU

II Independent power producers (IPP) 715.66 MU

III Captive power producers (CPP) 88.70 MU

IV Import (CGS, UI, Traders, etc.) 10555.02 MU

Net System Input Energy 18946.29 MU

Energy Consumption

Total Consumption 4167 MU implies a saving potential of 132 Cr !!!

Daily and Monthly Average Consumption

Previous 1 year avg consumption of HT & EHT consumers (Dec2011-Dec2012)

TOTALNormal Total Consumption 2637.88MUNormal Monthly Average 222.71MUNormal Daily Average 7.42MUPeak Total Consumption 641.99MUPeak Monthly Average 54.19MUPeak Daily Average 1.80MUOffPeak Total Consumption 1334.54MUOffPeak Monthly Average 112.28MUOffPeak Daily Average 3.74MU

Forecasting the Energy Consumption of HT/EHT Industries by 2020.

Recent Developments in Kerala Power sector

• Jan -2011 – GO order for mandatory energy audit is issued• Oct -2012 - KSEB had conducted a discussion with the

representative of the HT/EHT consumers • Nov 2012 - Board to impose ½ hour load shedding through 11kV

feeders in the morning hours and in the evening peak hours• Dec 2012 - Kerala State Energy Conservation Award 2012 are

distributed on Energy Conservation day (35 MU -22.75 Cr)• Jan 2013 – TOD metering for 11000 domestic connections• Jan 2013 – KSEB tie up with startup village to start Energy

Innovation Zone

EA MARKET ANALYSIS

Classification of Energy Auditing Firms

Region wise Auditing firms

Year of commencement of energy audit

Human Resources

Branch Network wise

ENERGY AUDIT SURVEY

Participant Details

Awareness of saving potential of energy auditing

Certification Status

Awareness of GO

EMC GUIDELINES

Industry Awareness

Remuneration for auditors

Interested in Domestic auditing

Rental equipments

Simulation Softwares

Conservation measures

Energy audit implementation

Energy Training

SWOT ANALYSIS

Strength

•Mandatory•High Saving Potential (132 Cr)•Consumer Mix

Weakness

• Lack of awareness in industry•Unavailability of certified energy auditors and equipments•Complexity•Lack of practical experience

Opportunity

•Huge Demand•No Active Presence of corporate companies• Lack of competition

Threats

•High investment in tools•Availability of low cost energy•Small Market (0.03%)

FindingsFindings

Recommendations

Professional fee must be based on

The awareness and exposure to the detailed energy audit

study and its benefits.

Assessment of firm’s capability in delivering the services

The quality of the energy audit services

The success rate of the measures and reputation of the firm

The resources deployed for the data generation and audit

Energy Service Company

• ESCO

Recommendations

• Potential financial mechanism to support energy auditing

• Social awareness campaign for public

• Detailed workshops for industries

• Knowledge Database and Web portals to share audit knowledge and experience

• Educational courses

Conclusion

• Energy auditing has high business potential in Industries and domestic consumers in Kerala

• Mandatory as well as awareness of saving potential will help to boom this sector

• This will be a future career option for many aspirants in energy sector

• Do energy conservation for Economical and Environmental benefits

It is never too late to practice energyauditing and efficiency otherwise …

Year 1900

Year 2000

Year 2020

Year 1800

Year 2050

Any Questions ?