“CURRENT ENERGY EFFICIENCY INITIATIVES IN INDIA”

D.Pawan KumarNPC India(Feb 2011)

INDIAN ENERGY SCENARIO

• Coal Sector– 7.1 % of the world reserves – higher calorific value and low ash content coal are being imported mainly from Australia, Indonesia

and South Africa– 15 % of the annual coal requirement imported– A tax (clean energy cess) of Rs. 50 on every tonne of coal mined in the country as well as that

imported from abroad.

• Oil Sector– 0.5% of the total world reserves– accounts for about 31 % of the country’s primary energy consumption – transport accounts for 42% followed by domestic sector and industry sector with 24% each

respectively

• Natural Gas Sector – 0.6% of the total World reserves– natural gas is cooled to -161oC to get Liquefied Natural Gas (LNG) (600 times reduction in volume)– Compressed Natural Gas (CNG) is made by compressing natural gas to less than 1% of the volume it

occupies at standard atmospheric pressure– accounts for about 8.6 per cent of fuel consumption

• Out of the total annual primary commercial energy supply of 408.49 MTOE, 62.5% of total primary commercial energy is used in the form of Coal, oil, gas for non thermal power generation etc, whereas 37.5% of total primary commercial energy is used for thermal power generation .

• Designated sectors (Cement, Iron & Steel, Paper & Pulp, fertilizer, aluminum, textile and chlor-alkali) except Thermal Power Plant account for (122.26 MTOE) 29.9% of total primary commercial energy consumption.

The National Mission for Enhanced Energy Efficiency (NMEEE)

• Perform Achieve and Trade (PAT), which is a market-based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy intensive large industries and facilities through certification of energy savings that could be traded.

• Market Transformation for Energy Efficiency(MTEE) – to accelerate the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable.

• Energy Efficiency Financing Platform (EEFP) –to simulate necessary funding for ESCO based delivery mechanisms for energy efficiency.

• Framework for Energy Efficient Economic Development(FEED) to develop fiscal instruments to promote energy efficiency like the Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE).

OVERVIEW OF ENERGY INTENSIVE SECTORS

1. THERMAL POWER PLANTS• As per the Integrated Energy Policy Report (IEPR),

prepared by the Planning Commission, GDP growth rate of 9% has been projected during the XI plan

• Installed capacity of 100,351 MW• The total thermal power generation was 589 BU in FY

2009.• Average Station heat rate (SHR) is about 2700 kCal

/kWh.• The sectoral DC energy consumption is 151 MMTOE.

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in TPP’S

• Renewable Energy generation increase• Auxiliary Power Consumption reduction• Plant Load Factor improvement• Supercritical technology• Ultra Mega Power Plants

2. OVERVIEW OF IRON & STEEL SECTOR

• Per capita consumption of steel in India is about 46 Kg• According to Ministry of Steel, Government of India,

production of crude steel was 54 MMT in FY 2009.• The sectoral DC Energy consumption is 42.45 MMTOE.• The average specific energy consumption in India for

crude steel production is 7.8 Mkcal/tonne• Production of Iron and Steel industry is expected to

grow at the rate of 7.3% over the future years.

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAP in STEEL SECTOR

• Top pressure recovery Turbine system• Pulverized Coal injection system• Waste heat recovery improvement• Coke dry quenching technology adoption• Cogeneration improvements• Continuous casting system adoption

3. OVERVIEW OF FERTILIZER SECTOR

• According to Department of Fertilizers, the total production of nitrogenous and phosphatic fertilizers during FY 2008 was 33 MMT.

• The sectoral DC energy consumption is 29.81 MMTOE

• The production from the Indian Fertilizer industry is expected to grow at a rate of 5% in the future.

• The average specific energy consumption of the industry is 8.97 Mkcal/tonne.

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in FERTILIZER SECTOR

• Shift to Natural Gas based production• Installation of Pre-reformers• Adoption of Purge gas recovery units• Catalyst upgrades• Use of high pressure reformers• Improvements in Ammonia synthesis process

4. OVERVIEW OF PAPER AND PULP SECTOR

• The annual sectoral production is 7.6 million TPA• The Sectoral DC energy consumption is 5.15

MMTOE• The average specific electrical and thermal

energy consumption values for paper and pulp production in India are 1600 kWh/tonne and 5.4 Mkcal/tonne respectively.

• The share of energy costs in the total manufacturing cost is close to 25%.

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in PULP & PAPER SECTOR

• Increased Biomass energy use• Paper machine upgrades & DCS adoption• Cogeneration plant upgrades• Drive improvements• Steam economy measures

5. OVERVIEW OF TEXTILE SECTOR

• The Industry accounts for 4% to GDP & 17% to country’s export earnings.

• During FY 2008, the total production of cloth was 56025 million m2.

• The industry is expected to register and annual growth rate of 7%.

• The Sectoral DC energy consumption is 28.14 MMTOE.

• The energy requirement for production of cloth is about 0.50 kgOE/Sq.m

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in TEXTILE SECTOR

• Modernizing Spinning/Weaving/Processing equipments

• Variable speed drives adoption• Waste heat recovery & Steam economy

improvements

6. OVERVIEW OF CEMENT SECTOR• Total installed capacity is around 231 million tonnes per

annum (MMTPA) (September 2009)• In FY 2008, as per Cement Manufactures Association(CMA),

the cement production is India was 170 million metric tones (MMT).

• During the eleventh plan period (2007-12), cement production is targeted to grow by 8% annually.

• The sectoral DC energy consumption is 14.35 MMTOE• The average specific electrical and thermal energy

consumption for cement plants in India is 98 kWh/tonne and 0.76 MKcal/ tonne of cement respectively and 84 kgOE/Tonne

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in CEMENT SECTOR

• Multistage preheater system• Mill Modernization• DCS adoption• Fan system improvements• Waste heat recovery upgrades

7. OVERVIEW OF ALUMINIUM SECTOR

• Total production of aluminum in FY2008 was 1.23 MMT

• Expected to register an annual growth rate of 7%.• The sectoral DC energy consumption is 1.77

MMTOE• The current average specific energy consumption

in the Indian aluminum industry is approximately 14.4 Mcal/tonne(1440kgOE/T)

• Electricity accounts for 40% of production cost.

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in ALUMINIUM SECTOR

• Adoption of point feed baked Anode system• Steam parameter up scaling in Combined

power plants

8. OVERVIEW OF CHLOR ALKALI SECTOR

• The total production of Caustic soda in FY2008 was 2.20 MMT which is expected to increase to 2.7 MMT by FY2012 with an annual growth rate of 7%.

• The membrane cell technology requires electricity in the range of 2500-2700 kWh/tonne as compared to 2900-3200 kWh/tonne required in the diaphragm technology and 3300-3700 kWh/tone required in the mercury cell technology.

• The Sectoral DC energy consumption is 0.565 MMTOE.• The average specific energy consumption by the chlor alkali

industry is about 2.57 Mkcal/tone of caustic soda (260 KgOE/Ton)

OPTIONS FOR BRIDGING ENERGY EFFICIENCY GAPS in CHLOR ALKALI SECTOR

• Brine Quality improvements• Membrane upgrades• Caustic Concentration Plant Modernization• Utility System Modernization• Trigeneration

ENERGY SAVING MARGINS Sectors Average Specific consumption

Existing Best Practice

TPP (Heat Rate) 2703.9 2432.2

Iron & Steel (kg OE/T) 788 600

Fertilizers (kg OE/T) 897 760

Paper & Pulp (kg OE/T) 678 505

Textiles (kg OE /Sq.M) 0.5 NA

Cement 84 70.6

Aluminium (kg OE/T) 1440 1100

Chlor Alkali (kg OE/T) 257 213

• Best and Average values coexist across sector.•Wide bandwidth is a concern area•PAT scheme envisaged to be a stimulant for bridging gaps

OVERVIEW OF SAVINGS ACHIEVED DURING 2007-10

• A recent NPC third party verification study of BEE initiatives indicates that during (2007-10) 22.51 million TOE and cumulative avoided generation capacity 4996 MW was achieved.

• The financial savings amount to about– US$ 13.2 Billion by way of fuel savings (US$ 600/TOE – US$ 8 Billion by way of avoided capacity generation

and transmission infrastructure (US $16 lakhs/MW

CONCLUSION

• The verified avoided capacity addition as a result of BEE initiatives have reached 5000 MW, and is expected to exceed the targeted 5% reduction (10,000 MW) by 2012.

• NMEEE, will scale up this effort and results.• Success of the STAR labeling programmes, the CDM-based CFL

programme, strong institutional structure with setting up of EESL and capacity building of State Designated Agencies, EC act implementation, success of star labeling programs, BLY program, SDA initiatives, institutional strengthening by EESL incorporation, NCE schemes for capacity building are felt to be major steps in Energy efficiency roadmap of India.

THANK YOU