Energy Efficiency Policy of IndiaEnergy Efficiency Policy of India

WORKSHOP ON ENERGY EFFICIENCY AND IMPLEMENTING ENERGY MANAGEMENT SYSTEMS FOR INDUSTRIES

5th March,2013

K. K. ChakarvartiK. K. ChakarvartiEnergy Economist,Energy Economist,

Bureau of Energy EfficiencyBureau of Energy EfficiencyNew Delhi (INDIA)New Delhi (INDIA)

5th March,2013

INTRODUCTIONINTRODUCTION

�India has made rapid strides towards economicself-reliance over the last few decades.

�Impressive progress has been made in the fields�Impressive progress has been made in the fieldsof industry, agriculture, communication, transportand other sectors necessitating growingconsumption of energy for developmental andeconomic activities.

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� Conventional source of energy such as coal, oil and gasare scarce and exhaustible.

� Energy prices will rise in the long run to reflect theirrelative scarcity and high cost of exploration andextraction.

INTRODUCTION INTRODUCTION (contd.)(contd.)

� Hence, all attempts need to be made expeditiously toensure the optimal use of the available resources so asto manage the viability and availability of energy useand supply.

� This has led the Government of India through theEnergy Conservation Act and the Bureau of EnergyEfficiency to launch several programmes.

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THE INDIAN ENERGY CONSERVATION ACTTHE INDIAN ENERGY CONSERVATION ACT

��EC Act enacted in October 2001EC Act enacted in October 2001

��BecomeBecome effectiveeffective fromfrom 11stst MarchMarch 20022002

�� BureauBureau ofof EnergyEnergy EfficiencyEfficiency (BEE)(BEE) operationalizedoperationalized fromfrom 11 stst

MarchMarch 20022002..MISSION OF BEEMISSION OF BEEMISSION OF BEEMISSION OF BEE

DevelopDevelop policypolicy andand strategiesstrategies withwith aa thrustthrustonon selfself regulationregulation andand marketmarketprinciples,principles, withinwithin thethe overalloverall frameworkframework ofofthethe ECEC ActAct withwith thethe primaryprimary objectiveobjective ofofreducingreducing energyenergy intensityintensity ofof thethe IndianIndianeconomyeconomy..

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THE INDIAN ENERGY CONSERVATION ACTTHE INDIAN ENERGY CONSERVATION ACT

� The five major provisions of EC Act relate to:� Designated Consumers (mainly energy intensive industries) to comply

with the specific energy consumption norms for the manufactured productsand services and establishment of energy management system,

� Standards and Labeling of energy consuming appliances, gadgets andequipment to ensure promotion of energy efficiency of the new stocksentering the marketentering the market

� Energy Conservation Building Code ensuring that new commercialbuildings constructed in the country have less electricity consumption

� Creation of Institutional Set up (Bureau of Energy Efficiency) for effectivecoordination of the energy conservation efforts in the country and

� Establishment of Energy Conservation Fund at Centre and States toprovide necessary financial support for energy efficiency initiatives in thecountry.

�� Energy efficiency institutional practices and progr ams in India are now Energy efficiency institutional practices and progr ams in India are now mainly being guided through various voluntary and m andatory mainly being guided through various voluntary and m andatory provisions of the Energy Conservation Actprovisions of the Energy Conservation Act

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Mandatory Requirements to be fulfilled by DCs`

Schedule to EC Act provides list of 15 energy inten sive industries and other establishments to be notified as designated consume rs (DC). DCs to

Appoint or designate energy managers in charge of a ctivities for efficient use of energy and its conservation (clause 14(l)).

• (Note: The minimum qualification of energy manager to be designated or appointed under clause 14(l) is the passing of certification examination, conducted by Bureau of Energy Efficiency. The following information to be provided for energy manager:

– Name of the energy manager– Name of the energy manager– Registration number (EA/EM No.)– Complete postal office address– Telephone and Mobile number – Email address)

The information with regard to energy consumed (cla use 14(a)) in Form 1Get energy audits conducted by accredited energy au ditorsImplement techno-economic viable recommendationsComply with norms of specific energy consumption fi xed Submit report on steps taken

•

Designated Consumers -Initiatives

� 9 energy intensive industry have been notified asdesignated consumers

� 13 National Certification examinations for EnergyManagers and Energy Auditors have been successfullyconducted. India has now about 9993 Certified EnergyManagers, out of which 7201 are also qualified asCertified Energy Auditors

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Certified Energy Auditors� 4 Guidebooks have been prepared to assist energy

professionals� 85 Coal fired power generating units of various sizes

(110-500 MW) have been mapped. Studies haveidentified 3 million tonne of coal savings potential in 49nos. of 210 MW units

� Baseline energy audits studies have been carried out inabout 400 units of 8 energy audit industry and thermalpower units.

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Standards and labeling- Initiatives

� The National Energy Labeling Programme was launchedon 18th May, 2006

� 14 Equipment and Appliances covered under S&LProgramme

� All the refrigerators (frost free), airconditioners, distribution transformers and fluorescentconditioners, distribution transformers and fluorescenttube lights that are sold in India must have a BEE Starlabel w.e.f 7th January,2010

� Draft standards & Labelling scheme for passenger carshave been finalised.

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Sample LabelsSample Labels

Ref

riger

ator

Ref

riger

ator

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Ref

riger

ator

Ref

riger

ator

ENERGY ENERGY CONSERVATION BUILDING CONSERVATION BUILDING CODECODE –– Initiatives Initiatives

� ECBC covering five climatic zones of India (Hot & Dry, Warm & Humid, Composite, Temperate and Cold) prepared

� ECBC set minimum energy efficiency standards for design and construction

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design and construction � Mandatory Scope Covers

commercial buildings � Survey indicates about 306

buildings being constructed in the country are ECBC complaint

Case study : Fortis Hospital

Shalimarbagh,

New Delhi

• Initial energy consumption: 605 kWh/m2

yryr

• Building envelope

– AAC blocks

– Insulated roof

– Double glazing and shading for

windows

Case study : Fortis Hospital

EPI = 605 kWh/m 2 per annum

EPI = 593 kWh/m 2 per annum

Base building

Envelope optimisation

Lighting optimisation

EPI = 346 kWh/m 2 per annum

EPI = 476 kWh/m 2 per annum

EPI = 312 kWh/m 2 per annumECBC compliant Fortis building, New Delhi

Lighting optimisation

Efficient chiller

Controls for HVAC system

National Energy Conservation AwardsNational Energy Conservation Awards

� BEE coordinates this voluntary activity on behalf of Ministry of Power

� Due to consistent efforts put in by BEE, scheme has become very popular amongindustries, as is evident from increasing participation level (773 nomination in 2012 incomparison to 644 nominations in 2011)

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359 357

504

616

400

500

600

700

Eq

uiv

ale

nt

Ca

pa

city

Av

oid

ed

in

MW

ELECTRICAL ENERGY SAVING IN TERMS OF EQUIVALENT

AVOIDED GENERATION CAPACITY (MW)

45

10090

122103

155

252 245

308325

0

100

200

300

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Eq

uiv

ale

nt

Ca

pa

city

Av

oid

ed

in

MW

Year

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YEAR WISE ENERGY SAVINGS ACHIEVED BY PARTICIPATING UNITS IN

MINISTRY OF POWER’S ENERGY CONSERVATION AWARD SCHEME

(From 1999 to 2012)

Year

No. of

Participating

industrial

units

Annual

Savings in Rs.

Crores

One time

investment

in

Rs. Crores

Electrical Energy Saving Furnace Oil

& Other

liquid fuel

Savings, in

Lakhs kL

Coal Savings

in Lakh

Metric

Tonnes

Gas Savings

in Lakh cubic

metresMillion kWh

Equivalent

avoided

capacity in

MW

2012 773 2886 1948 4177 616 2.65 25.53 4303

2011 644 2390 2201 3421 504 3.29 33.21 4085

2010 592 2138 5457 2422 357 3.41 23.42 83382010 592 2138 5457 2422 357 3.41 23.42 8338

2009 558 2377 3180 2451 359 5.65 12.4 4274

2008 368 1859 2493 2216 325 1.85 3.47 15729

2007 384 1843 2923 1620 308 1.25 5.86 15379

2006 388 1135 1266 1288 245 1.19 5.17 29044

2005 343 993 1319 1327 252 2.4 7.58 13122

2004 297 763 1364 814 155 2.49 5.37 18585

2003 191 539 1071 542 103 2.21 12.65 73181

2002 174 594 691 641 122 1.7 7.4 35588

2001 157 587 659 485 90 2.21 4.79 3929

2000 120 366 630 524 100 1.327 0.64 707

1999 123 205 940 205 45 1.62 2.15 2444

Total 14

years18675 26142 22133 3581 33.65 149.53 22870917

The President of India, Shri Pranab Mukherjee addre ssing at the National Energy Conservation Day function, i n New

Delhi on December 14, 2012

Painting Competition on Energy ConservationPainting Competition on Energy Conservation

• Ministry of Power and Bureau of Energy Efficiency havebeen organizing painting competitions on energyconservation for the last 7 years for students of the 4 th, 5th

and 6 th standards at School, State and National levels• The scheme aims at sensitizing the children towards issues

of energy conservation.• The scheme is being executed in all the 28 States and 7• The scheme is being executed in all the 28 States and 7

UTs• In the year 2012, more than 3,000,000 students participated

in comparison to about 343,000 students in 2005.

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FIR

ST

PR

IZE

F

IRS

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Rs.

1,0

0,0

00

/R

s. 1

,00

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0 /

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IZE

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Name : (01) K R Roshni

State : Tamil Nadu

The President of India, Shri Pranab Mukherjee presented the National Painting Competition Prizes, at the National Energy Conservation Day function, in New Delhi on December 14, 2012. The Minister of State

(Independent Charge) for Power, Shri Jyotiraditya Madhavrao Scindia and the Secretary, Ministry of Power, Shri P. Uma Shankar are also seen.

NMEEE – Four New Initiatives

• Perform Achieve and Trade (PAT) : A market based mechanism toenhance cost effec-tiveness of improvements in energy efficiency inenergy-intensive large industries and facilities, through certificationof energy savings that could be traded.

• Market Transformation for Energy Efficiency (MTEE):Accelerating the shift to energy efficient appliances in designatedAccelerating the shift to energy efficient appliances in designatedsectors through innovative measures to make the products moreaffordable

• Energy Efficiency Financing Platform (EEFP): Creation ofmechanisms that would help finance demand side managementprogrammes in all sectors by capturing future energy savings.

• Framework for Energy Efficient Economic Development(FEEED): Developing fiscal instruments to promote energyefficiency

Perform, Achieve & Trade (PAT)

� The key goal of the PAT scheme is to mandate specificenergy efficiency improvements for the most energyintensive industries.

� The scheme builds on the large variation in energyintensities of different units in almost every sector,ranging from amongst the best in the world, to extremelyinefficient units as well.inefficient units as well.

� The energy intensity reduction target mandated for eachunit is dependent on its current efficiency : the reductiontarget is less for those who are more efficient, and ishigher for the currently less-efficient units.

� The design of PAT is the result of extensive consultationsover the last two years (2010-11 and 2011-12), whichhave contributed to its robustness and simplicity.

Coal (Indian)

(1,03,339 Tons/yr ,GCV 3438 kcal/kg)

Coal1 (Imported)

(6246 Tons/yr, GCV 5454 kcal/kg)

Furnace Oil

(669 Tons/yr, GCV 10000 kcal/kg)

HSD

(570 Tons/yr , GCV 8600 kcal/litre)

Grid Electricity (53.08 Lakh KWh)

CPP(Heat Rate

3135 kcal/kWh)

GRID (Exported)(19.35 LAKH kWh/YR)

EXAMPLEEXAMPLE-- INPUT & OUTPUT FOR A TYPICAL CEMENT PLANTINPUT & OUTPUT FOR A TYPICAL CEMENT PLANT

DG SET(Heat Rate

2212 kcal/kWh) 2.09 Lakh kWh

3148 lakh KWh

Colony, (5.1 Lakh kWh)

Crushing and

Mining

(Exported)(25.12 LAKH kWh/YR)

Pet Coke

(3316 Tons/yr, GCV 8400 kcal/kg)

Crushed Limestone

Iron Ore, Bauxite,Gypsum

Clinker (0.06 Lakh Tons/yr)

Coal2 (Imported)

124746 Tons/yr, GCV 6192 kcal/kg)

PPC (14.92LAKHTONNE/YR)

PSC /OTHER(2.30 LAKH TONNE/YR)

OPC(0.08 LAKH TONNE/YR)

Clinkerization

(Raw Material

Processing &

Pyro-processing)

Grinding

(VRM and

RP &BM)

Flyash, Slag, Etc

Colony, (5.1 Lakh kWh)

Note: All values presented in the above diagram are average of annual energy consumption of 2007-08, 2008-09, 2009-10

PAT Scheme : Scope� Covers 478 designated consumers in 8 sectors

� All DCs consume about 165 million toe energy

� Targets given to all DCs to achieve the same within a time frame

-Achievement > Target E-Scert s-Achievement < Target Purchase E-S certs / Penalty

� The Energy Savings Certificates (ESCerts) so issued will be tradable on special trading platforms to be created in the two power exchanges (Indian Energy Exchange and Power Exchange India).

� National Target = 6.686 million toe at the end o f 1st PAT Cycle ( by 2014-15)

National Energy Saving Targets under PAT (%)(2012-15)

PAT BenefitsPAT Benefits� The direct benefit for the participating

industries in this period is reductions ininput costs related to energy ofapproximately Rs 68000 million.

� Needless to add, this will significantly� Needless to add, this will significantlyenhance global competitiveness ofindustry while simultaneously reducingIndia's CO2 emissions by 24 million tonsper year in 2014-15.

ISO 50001 ENERGY MANAGEMENT

SYSTEM STANDARDSYSTEM STANDARD

Energy Management

“The judicious and effective use of energy to

maximize profits (minimize costs) and enhance

competitive positions”

“The strategy of adjusting and optimizing energy, using systems

and procedures so as to reduce energy requirements per unit of

output while holding constant or reducing total costs of

producing the output from these systems”

competitive positions”

The weight of Energy savings compared to other technologies

Global CO2 emissions forecast, G.tons CO2 / year

ISO 50001: Energy Management Systems Standard-Introduction

� ISO 50001- the International Standard for Energy ManagementSystems (EnMS)

� This Draft International Standard was released in April 2010 andwas published in mid-2011.

� Energy Management Systems offers a comprehensive andstructured approach for energy efficiency improvement.

� ISO 50001: 2011(E) defines EnMS as “set of interrelated or� ISO 50001: 2011(E) defines EnMS as “set of interrelated orinteracting elements to establish an energy policy and energyobjectives, and processes and procedures to achieve thoseobjectives “

� Applicable to any organization, whatever the size, industry orgeographical location

� An organization embracing ISO 50001 is likely to further accelerateadoption of energy efficiency practices and to continuously improveits energy performance and cost.

ISO 50001: Energy Management Systems Standard-Introduction ( contd.)

� Application of the standard can be tailored to fit the requirements ofthe organization, including degree of documentation, resources andcomplexity of the system

� This International Standard can be used forcertification/registration and/or self-declaration of anorganization's energy management system.organization's energy management system.

� The fact that it's based on measurement and verification will helporganization stay on track to meet their declared energy policies.

� Adoption of ISO 50001 by any organization will:

• Reduce energy bills

• Make manufacturing more sustainable

• Promotes energy efficiency throughout the supply chain

• Helps in meeting National GHG reduction targets

ISO 50001-EnMS Requirement

� ISO 50001 specifies requirements for an organization to establish,implement, maintain and improve an energy management system.

� Specifies energy management system (EnMS) to :• develop and implement an energy policy,• establish objectives, targets, and action plans which take into

account legal requirements� This International Standard specifies requirements for all factors� This International Standard specifies requirements for all factors

affecting:• energy supply, uses and consumption• measurement, documentation and reporting,• design and procurement practices for energy using equipment,

processes, systems, and personnel.

ISO 50001 does not prescribe specific performance criteria withrespect to energy

IMPLEMENTATION

AND OPERATION

IMPLEMENTATION

AND OPERATION

ENERGY PLANNING

ENERGY POLICYENERGY POLICY

MANAGEMENT

REVIEW

MANAGEMENT

REVIEW

CONTINUAL

IMPROVEMENT

CONTINUAL

IMPROVEMENT

ENERGY MANAGEMENT SYSTEM MODEL FOR

ISO 50001

CHECKINGCHECKING MONITORING, MEASUREMENT

AND ANALYSIS

MONITORING, MEASUREMENT

AND ANALYSIS

CORRECTIVE AND

PREVENTIVE ACTIONS

CORRECTIVE AND

PREVENTIVE ACTIONS

INTERNAL AUDITINTERNAL AUDIT

Comparison between ISO 50001, ISO 9001 and ISO 14001

• ISO 50001 is in line with ISO 9001 and ISO 14001 standards that addressquality management and environmental management issues.

• ISO 50001 is based on the same Plan-Do-Check-Act approach of ISO 9001and ISO 14001 and it draws extensively on the structure and content of theQMS and EMS.

• Implementation of ISO 9001 means what the organization does to fulfill thecustomer's quality requirements, and applicable regulatory requirements,customer's quality requirements, and applicable regulatory requirements,while aiming to enhance customer satisfaction,

• Implementation of ISO 14001 means what the organization does tominimize harmful effects on the environment caused by its activities, and toachieve continual improvement of its environmental performance.

• Similarly ISO 50001 implementation is expected to address what theorganization does to effectively manage energy resources and performancethat is relevant to global standards.

ISO 50001 in Indian Context (contd.)

� In order to achieve the targets, as set , the plant is required to havea strong energy management system , well defined energy policyand qualified human resource.

� More than 200 industrial units and other establishments havealready declared their energy policy and have certified energymanagers and energy auditors.

� India has now about 9993 Certified Energy Managers, out of which7201 are also qualified as Certified Energy Auditors, from the7201 are also qualified as Certified Energy Auditors, from theprevious 12 examinations conducted by Bureau of Energy Efficiencysince 2004.

� These professionally qualified energy managers and energyauditors have expertise in energy management, projectmanagement, financing and implementation of energy efficiencyprojects, and policy analysis

� In view of the above , it may be relatively easier for Indian industry toadopt ISO 50001 Standard

ISO 50001Certified Establishments in India

• Dahanu Thermal Power Station (2x 250 MW) (DTPS) inMaharashtra, ( Western India)

• “After receiving ISO 50001, DTPS would derive numerousbenefits of energy management- making better use ofexisting energy-consuming assets, monitoring andmanaging reductions in GHG emissions, managing energyuse and costs, implementation of new energy -efficientuse and costs, implementation of new energy -efficienttechnologies and management of energy resources.”

-Mr. Lalit Jalan, CEO, Reliance Infrastructure Limited, Ind ia

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ISO 50001Certified Establishments in India

• IEC Gensets Limited & Core Metal KraftsLimited, based in Chandigarh (Northern India)

• Vedanta Aluminium Ltd., Lanjigarh Unit in Orissa(Eastern India).

• BSES Kerala Power Limited, a subsidiary of Reliance• BSES Kerala Power Limited, a subsidiary of RelianceInfrastructure Limited (Southern India)

• The Delhi International Airport Limited (DIAL). DIALbecame the first airport operator to receive thiscertification.

• In India, so far, more than 30 companies have gotISO- 50001 certification

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ISO/TC 242

• The next meeting of ISO/TC 242 and its Working Group Meetings to be held from 22 to 26 April 2013 at Cape Town ,South Africa.

• The following documents, which are Committee Drafts (CD), are being put up by ISO for discussion during the meeting:

1. ISO/CD 50002 Energy audits.2. ISO/CD 50003 Energy management system audits and auditor 2. ISO/CD 50003 Energy management system audits and auditor

competency3. ISO/CD 50004 Guidance for the Implementation, Maintenance

and Improvement of an EnMS4. ISO/CD 50006 Energy Baseline and Energy Performance

Indicators (EnPIs) -- General Principles and Guidance5. ISO/CD 50015 Monitoring, measurement, analysis and

verification of organizational energy performance

Impact of BEE ProgrammesImpact of BEE Programmes� Standards and Labelling of equipment and appliances

programme has created a market transformation andpromoted energy efficiency among consumers

� Energy saving targets have been fixed for 8 sectors ofenergy intensive industry- 6.60 million ton of oil equivale ntby 2014-15

� More than 200 industrial units and other establishments� More than 200 industrial units and other establishmentshave already declared their energy management policy

� Promotion of ISO 50001 has been taken as one of the thrustarea of 12 th Plan (2012-2017)

� Various activities under different schemes have resulted i nsavings in avoided power generation capacity of about10,836 MW during 11 th Five Year Plan (2007-2012).

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12th Plan(2012-17): Energy Savings Program

• Avoided Peaking Capacity target: 12,350 MW*

• Savings in BU 44.85 BU (consumer end)60.17 BU (at bus bar)

* 12th Plan baseline is the achieved energy efficiency levels in 2011-12 (Not levels in 2006-07 as for the 11th Plan)

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Each and every one has the energy to save energy and we must use that energy to save energy every

moment in every way we can!

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