Implementation of Energy Conservation Act and BEE Action Plan

1
Implementation of Energy Conservation Act and BEE
Action Plan

• RAJIV GARG
• Energy Economist
• Bureau of Energy Efficiency

2
INTRODUCTION

• Economic growth is desirable for developing
  countries, and energy is essential for economic
  growth.
• If India is to achieve the targeted growth in
  GDP, it would need commensurate input of energy,
  mainly commercial energy in the form of coal,
  oil, gas and electricity.
• Unfortunately Indias fossil fuel reserves are
  limited .
• The known reserves of oil and natural gas may
  last hardly for18and 26 years respectively at the
  current reserves to production ratio.
• Although Indias huge proven coal reserves (84
  billions huge proven coal reserves (84 billion
  tonne ) may last for about 235 years but the
  increasing ash content in Indian coal as well as
  associated green house gas emission are the major
  concern.

3
India Total Primary Energy Supply

• Total primary energy supply has increased from
  about 350 million toe in 1990 to about 580 Mtoe
  in 2004 an increase of about 2.2 per year

4
Sectoral Energy Consumption
Total Energy Consumption 356 Mtoe (2005)
Source IEA
5
Energy Intensity is fifth lowest in the world

• Japan, Denmark, UK and Brazil have lower energy
  intensity
• Energy intensity is declining at about 1.5 per
  year

6
Energy Use in India

• Energy consumption in India is low, though
  efficiency of use is reasonable
• Per capita energy consumption is 530 kgoe world
  average is 1770
• Energy intensity of Indian economy was 0.18
  kgoe/-GDP(PPP) in 2004 compared to 0.14 in
  Japan and 0.19 in the EU
• Energy demand is increasing due to rising
  incomes, accelerated industrialization,
  urbanization and population growth
• 2003-04 572 Mtoe
• 2016-17 842-916 Mtoe
• 2026-27 1406-1561 Mtoe
• Meeting the increasing demand only through
  increases in supply may lead to
• Reduced energy security due to volatility in
  availability and prices of imported fuels
• Adverse environmental impacts
• Strain on balance of payments
• Energy conservation and energy-efficiency are an
  essential part of national energy strategy

7
Energy Efficiency is essential !
8
IMPORTANCE OF ENERGY CONSERVATION

• Energy efficiency/conservation measures can
  reduce peak and average demand.
• .
• One unit saved avoids 2.5 to 3 times of fresh
  capacity.
• Also avoids investment in fuel, mining,
  transportation etc.
• Keeping the above factors in view and also to
  provide a policy guidance, Government of India
  enacted the Energy Conservation Act,2001

9
BEE - Scope of Activities

• The Bureau of Energy Efficiency (BEE) was
  established on 1st March 2002, under the Energy
  Conservation (EC) Act, 2001.
• BEE is responsible for spearheading the
  improvement of energy efficiency in the economy
  through various regulatory and promotional
  instruments
• Plan, manage and implement provisions the EC Act
• Appliance standards and labeling
• Industrial energy benchmarks
• Energy Conservation Building Codes
• Monitor energy use in high energy-consumption
  units
• Certify and accredit energy auditors and energy
  managers
• Provide a policy framework and direction to
  national energy conservation activities
• Disseminate information and knowledge, and
  facilitate pilot and demonstration projects
• Establish EE delivery systems through
  Public-Private Partnerships (PPP).

10
Notification of Designated Consumers

• Among 15 Energy Intensive Industries, 9
  industries have been notified as Energy Intensive
  Industries as specified in the Schedule to the
  Energy Conservation Act, 2001 (52 of 2001),
  having annual energy consumption as indicated
  against each industry, as Designated consumers
  for the purposes of the EC Act-

11
Thermal Power Stations- 30,000 metric tonne of oil equivalent (MTOE) per year and above
Fertilizer- 30,000 metric tonne of oil equivalent (MTOE) per year and above
Cement- 30,000 metric tonne of oil equivalent (MTOE) per year and above
Iron Steel- 30,000 metric tonne of oil equivalent (MTOE) per year and above
Chlor-Alkali- 12,000metric tonne of oil equivalent (MTOE) per year and above
Aluminium- 7,500 metric tonne of oil equivalent (MTOE) per year and above
Railways-As per the details given in the subsequent slides
Textile-3,000 metric tonne of oil equivalent (MTOE) per year and above
Pulp Paper-30,000 metric tonne of oil equivalent (MTOE) per year and above
12
ENERGY CONSUMPTION SHARE (MTOE)
13
Energy saving potential in designated industrial
sector
Sl.No. SECTOR Annual Production Total Energy Consumption in MTOE Average Specific Energy C0nsumption Short Term Energy Savings Potential in next 3 years (3)In MTOE
1 Power (Thermal) 558.8 Billion unit 151.7 2717 kCal/kWh 4.55
2 Integrated Steel Plant 50 M.T. 35.5 7.1 million kCal/tonne of Cast-steel 1.065
3 Sponge Iron 19.3 M.T. 12.6 Electrical 70 kWh /T Thermal 6.5 million kCal/T 0.378
4 Fertilizer (Ammonia, Urea) 20.26 M.T. 28.8 14.3 Million kCal/T (Ammonia Urea) 0.864
5 Cement 165 M.T. 14.47 Electrical 90 kWh /T of Cement Thermal 800 kCal/Kg of Clinker 0.434
6 Aluminum (Primary) 1 M.T. 1.396 Electrical 15160 kWh /T Thermal 0.96 Million kCal/T 0.042
7 Paper 6.8 M.T. 3.04 Wood Agro Based Electrical 1150 kWh /T Thermal 4.5 million kCal./ 0.091
Waste Paper Electrical 650 kWh /T Thermal 2 million kCal/T
8 Chlor Alkali 2 M.T. 0.43 Electrical 2507 kWh /T Thermal 0.241 Million kCal./T 0.013
Total 7.437
Source National Energy Conservation Award, Industries Association Directories,CEA,TERI Hand books Source National Energy Conservation Award, Industries Association Directories,CEA,TERI Hand books Source National Energy Conservation Award, Industries Association Directories,CEA,TERI Hand books Source National Energy Conservation Award, Industries Association Directories,CEA,TERI Hand books Source National Energy Conservation Award, Industries Association Directories,CEA,TERI Hand books Source National Energy Conservation Award, Industries Association Directories,CEA,TERI Hand books
14
Energy Saving Potential of Indian Industry (CII)

• Iron Steel 10 (15 improvement
  in WEO 2007)
• Fertilizers 15
• Textile 25
• Cement 15 (IEA estimates
  18 CO2 emissions reduction by
  dissemination of BAT technologies)
• Pulp Paper 25
• Aluminum 10
• Petrochemical 15 (IEA estimates
  16 energy saving potential)
• Glass Ceramics 20
• Refineries 10
• Total 20-30
• Source Building a Low-Carbon Indian Economy (CII)

15
Designated Consumers - Industries

• EC Act, 2001 requires high energy consuming
  industries under section 14 to
• a) File energy consumption returns before the
  designated authority.
• b) Appoint or arrange Energy Manager for their
  Industry.
• c) Conduct mandatory audit if required by the
  Designated Agency.
• The central government, in consultation with the
  BEE, having regard to energy consumed, has
  specified industries in 9 sectors consuming
  energy above a certain threshold designated
  consumers

16
Industrial Energy Norms

• Bandwidth of energy efficiencies in all sectors
  is large old, low energy-efficiency units
  coexist with newer, state-of-the-art units
• 7 Sector-specific task forces constituted
• Aluminum,
• Cement,
• Chlor alkali,
• Fertilizer,
• Pulp paper,
• Steel
• Textile
• Draft Specific energy efficiency norms for Cement
  and Paper Pulp sectors have been developed,
  which are now under discussion with the concerned
  sub sectors
• Energy efficiency norms based on current relative
  efficiency of units within a sector
• Highly energy-efficient units have lower
  improvement targets
• Units with lower energy efficiency have more
  stringent improvement targets

17
Diversity within Sectors in India

• Large variation in scale of production capacities
• Diversity in raw material used

• Large bandwidth in specific energy
  consumption in cement sector

18
Energy Intensity is decreasing, but tail persists
!
19
Variations in Specific Energy Consumption
20
Implementation Status

• To strengthen the energy management and energy
  auditing capabilities in the country, Six
  National Certification examinations for Energy
  Managers and Energy Auditors have been
  successfully conducted till date.
• A total number of 5328 candidates are Certified
  as Energy Managers, out of which 3344 are also
  certified as Energy Auditors .

21
Responsibilities and Duties of Energy Auditor

• Carry out a detailed energy audit
• Quantify energy consumption and establish base
  line energy information
• Construct energy and material balance
• Perform efficiency evaluation of energy
  utility systems
• Compare energy norms with existing energy
  consumption levels
• Identify and prioritization of energy saving
  measures
• Analyse technical and financial feasibility of
  energy saving measures
• Recommend energy efficient technologies and
  alternate energy sources
• Report writing, presentation and follow up for
  implementation

22
Responsibilities and Duties of Energy Manager

• Establish an energy conservation cell prepare
  an annual activity plan
• Develop and manage training programme for energy
  efficiency at operating levels
• Develop integrated system of energy efficiency
  and environmental improvement
• Initiate activities to improve monitoring and
  process control to reduce energy costs
• Co-ordinate implementation of energy
  audit/efficiency improvement projects through
  external agencies
• Establish / participate in information exchange
  with other energy managers of the same sector
  through association
• Provide information to BEE and Designated Agency
  of the respective States as demanded in the Act

23

• THANK YOU