How to Reduce Energy Consumption in Industry?

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How to Reduce Energy Consumption in Industry?
http//shaktifoundation.in
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Sustainable Energy Future For India

• In light of Indias continuous struggle to meet
  the ever-growing demand for energy, the power
  sector is trying several means to increase power
  generation capacity particularly in the renewable
  energy sector. While we continue with this
  endeavor, it is equally important to take
  measures to ensure improved energy efficiency
  across all core sectors industry, buildings and
  appliances. In this context, focus on industry
  sector is essential, as it accounts for nearly
  40 of the total energy consumption in India.
  Reducing energy consumption in the industrial
  sector can prove to be very effective in
  designing the path towards a sustainable energy
  future for India.

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Briefing Series on PAT scheme

• The Perform Achieve and Trade (PAT) scheme
  launched in 2012 is one of the most recently
  designed and implemented policy mandate aimed at
  reducing specific energy consumption of energy
  intensive and large industries in India. The
  scheme is the brainchild of the Bureau of Energy
  efficiency (BEE).. The first phase of the scheme
  ended in 2015. The scheme has been projected to
  bring savings of about 6 to 7 million TOE (tons
  of oil equivalent) of energy, and reduction of
  about 25 million Tons of CO2 equivalent.

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Salient Features of PAT scheme

• The PAT policy includes a reward-penalty system
  to increase energy savings in the industry
  sector. Overachievement of energy savings above
  the assigned targets will result in market based
  incentives such as tradable ES Certs, whereas
  under-achievers would need to purchase ES certs
  or pay a penalty.
• The scheme focuses on improving the overall
  efficiency of the production process to achieve
  the eventual target of energy savings. It does
  not provide any emission reduction directives
  that aim at bringing down the absolute units of
  emissions as followed in several other countries.
  According to experts, PATs approach is far more
  realistic and sustainable as it seeks to
  encourage energy efficiency by setting targets on
  specific energy consumption. Political and
  commercial forces may influence absolute
  reduction of emission units.

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Increased Participation of Energy Service
Companies

• Another effective way to reduce energy
  consumption in industry sector could be increased
  participation of Energy Service Companies
  (ESCOs). An ESCO company delivers energy
  efficiency gains to its customers its
  compensation is directly tied to the energy
  savings achieved. ESCOs provide attractive
  options for companies willing to take up Energy
  Efficiency (EE) projects. A model ESCO contract
  for industrial sector has been designed recently.
  The Alliance for Energy Efficient Economy (AEEE)
  has been commissioned to work on the model on a
  pilot basis in consultation with relevant
  stakeholders such as ESCOs, Indian industry and
  financing institutions.

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Dr. Satish Kumar, Chairman AEEE who was the
session Chair. The Indian industry is looking for
more commitment from the government, both in
terms of finance and policy.
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Energy Efficiency Project Implementation

• The model ESCO performance contract for
  Industrial projects was required as currently
  there is absence of simple energy performance
  contracts that can govern such engagements
  between companies and an ESCO. The model that has
  been designed primarily focuses on robust
  measurement and verification tools and effective
  mechanisms for dispute resolutions based on an
  actual energy efficiency project implementation.

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Conclusion

• Given the performance of PAT Phase I in bringing
  down the energy consumption levels in the
  industry sector, much more can be done in its
  subsequent phases for better results and a
  sustainable energy future for India. Policy
  makers must also focus on other means such as
  ESCO contracts for industrial efficiency
  projects.

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