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Energy optimisation – the Cleaner Production (CP) wayFor

- Cost reduction- Energy savings- Pollution prevention

Rajat BATRATeam member ADVIT FoundationSTENUM Asia Sustainable Development SocietyGurgaon

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Outline

• Sustainable Development• Energy scenario in India• Cleaner Production (CP) approach• Success stories / actual case studies

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Sustainability

…..is anEconomic systemEconomic system

which fulfils the needs of the present generation without compromising

the needs of future generations

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Sustainable development

the 3 E concept� Environmental integrity

to have environmental considerations

� Economic efficiencyto have economic success

� Equityto have fairness to all persons involved in the process

A long term win-win approach

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Facts about global warming

• The primary greenhouse gas responsible for global warming iscarbon dioxide

• Scientists estimate that global temperatures are increasing at a rateof 0.3°C every ten years

• A temperature rise of just 1 or 2°C can cause flooding, drought,crop failures and stormy weather.

• 2000-2009 was the hottest decade on record• Sea levels have risen between 4-8 inches worldwide during the last

century, and experts predict they could rise as much 2 feet in thenext 100 years

• The World Health Organization blames 150,000 deaths per year onthe effects of global warming including extreme weather, drought,heat waves, decreased food production and the increased spread ofdiseases like malaria.

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India’s Energy needsSome facts…

• One of the fastest growing economies in theworld. Estimated growth 7% on moderate term.

• Energy Consumption is 12.6 million BTU.• India energy intensity is higher compared to

Japan, USA and Asia as a whole by 3.7, 1.55and 1.47 times respectively (energyconsumption compared to GDP).

• This indicates inefficient use of energy• Also substantial scope of energy savings.

Note: 1BTU = 3412.142kWh

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Trends in per capita Energy Consumption

Sources: Ministry of Statistics and Programme Implementation

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Present installed capacity of India

Sources: Central Electricity Authority

All India generating installed capacity (MW) of power utilities including allocated shares in joint and central sector Utilities.

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Electricity demand projections

Year

Total Electricity Required ( Billion kWhr)

Installed Capacity (MW)

GDP Growth Rate

7% 8% 7% 8%

2011-12 1031 1097 206757 219992

2016-17 1377 1524 276143 305623

2021-22 1838 2118 368592 424744

2026-27 2397 2866 480694 574748

2031-32 3127 3880 627088 778095

Source: Energy Policy Report, Planning Commission, India

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Trends in energy production in India

Sources: Ministry of Statistics and Programme Implementation

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Trends in Fuel Price

Note: Petrol, diesel and kerosene prices are in rupees per litre, while LPG prices are per cylinder of 14.2 kilogram's.

Sources: http://in.reuters.com/

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ENERGY for the futureSome Options…

� Clean Coal Technologies

� Usage of renewable energy resource

� Modernisation of power transmission & distribution

system

� Alternative fuels for surface transportation- bio-fuels,

electric vehicles, hydrogen and fuel cell vehicles.

� Hydrogen has significant potential as a clean energy

source

Sources: TERI

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Future Challenges

�Concerns of:� Energy access� Energy import vulnerabilities

� Climate change

� What then are the options & what are the implications of adopting alternative choices to fuel the country’s energy needs?

Scenario based illustrative projections

Sources: TERI

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What Shape Can The Future Take?

Scenario names

Storyline

Reference Energy Scenario (RES)

Development continues along current paths with autonomous efficiencyimprovements taking place where feasible and increase in use of renewable energy carrying on at the same pace; and defined policy priorities being implemented

Sustainable Energy Scenario (SES)

A determined effort is provided here for efficiency improvements both on the supply and demand sides; an accelerated push for renewable energy, nuclear and new technologies. Energy Security concerns are paramount in this scenario.

Global Equity Scenario (GES)

This scenario honours the Prime Minister of India’s commitment that India’s per capita carbon emissions would never exceed those of the developed world and it is optimistically assumed here that the developed world would be able to bring down its emissions to a level of 2 tonnes/capita by 2030 as indicated by IPCC AR4.

Stringent MitigationScenario (SMS)

This scenario considers that India takes on an extremely aggressive approach to energy self-sufficiency also resulting in even more stringent emissions reductions.

Sources: TERI

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Primary commercial energy supply2031

Sources: TERI

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Fossil import dependency

Large energy import infrastructure requirements by 2031 in the RESCoal import: ~1400 million tonnes, Oil import: ~750 million tonnes

Sources: TERI

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Power generation capacity mix2031

Sources: TERI

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Main Inferences

Directional path of the Global Equity Scenario (GES) most attractive, balances multiple considerations of

– minimizing energy imports

– optimizing use of India’s substantial renewable energy resources cost effectively, and

– efficient use of capital.

Sources: TERI

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Macro Inferences

Sources: TERI

� Significant short term gains (nearly 30%)are possible by increasing energyefficiencies along the entire value chain.� What we do in the short term can benefitfrom long term opportunities:

• Creating a comfort level with emergingtechnologies

• Creating a conducive environment fortransformational changes

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End of Pipe thinking:Waste Treatment approach

Waste is generatedWhat is to be done with it ?

Cleaner Production approach

Waste is generatedWhere does it come from ?

What can be done to avoid it ? What can be done to reduce it ?

Understanding Cleaner Production approach

Costs money

Saves money!

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Understanding Cleaner Production approach

Emissions and wastes are raw and auxiliary

materials – which have mostly been purchased for

a certain amount of money – and have not been

transformed into saleable products .

ECO-Efficiency is high when nearly all raw and auxiliary

materials are transformed to saleable products –

minimised waste

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Impact of Cleaner Production approach

Reducing wastage of energy in moulding process resulted in

lower specific energy consumption

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Structure of a typical CP project

• Individual projects (customised, as required)

• Cluster projects– Industry Association– Any other cluster

• Carried out over 9 to 12 months• Four elements

– Training, Consulting, Implementation support, Evaluation and award

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Advantages of CP

� Reduced production costs

� Reduced maintenance costs

� Improved statutory compliance

� Reduced enviornmental impacts

� Better work conditions to employees

� Better cooperation with authorities

� Enhanced image competetive advantage

� Preparation or addition to ISO 14001 or

ISO 50001 or other standards

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AfterBeforeProblem : Losses of brass chips in turning process

Improvement : Guard provided on machine to avoid coolant & chips on floor. This results in proper brass chips collection.

Savings/a: Rs. 27,600Cost: Rs. 27,600ROI: 1.0

Case Study 1: Reduced waste – auto parts SME in Gurgaon

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Case Study 2: Reduced energy and water consumption – auto parts SME in Bhiwadi

Improvement actions: • Insulated top surface of

tanks

Result: 80% energy and water saving;ROI: 5

• Saved 43,200 kWh/yr (Approx. Rs. 2 lakhs/yr)

• Fresh water saved 67,000 liter/yr

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After

Process : 36 pieces of mirror are placed on a standard brick for convex process in an oven.

Improvement : Number of pieces increased from 36 to 39 per slot. Size of brick altered within the possible regime to occupy more pieces thus saving energy on one hand and enhancing productivity on the other.

Savings/a: Rs. 207,000Cost: Rs. 33,120ROI: 6.25

Case Study 3: Reduced energy consumption - auto parts SME in Manesar

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Improvement actions: Compressed air was used to blow away empty pouches from the

packing line. A simple low voltage micro-blower was installed to do

the job

Case Study 4: Reduced energy consumption – confectionary in Manesar

TECHNO-ECONOMICS BEFORE AFTER

Orifice size 3 NA

Pressure 5 NA

No. of orifices 40 40

Operation hours 7,200 7,200

Compressed air (cfm/year)

4,059,102 NA

Energy needed (kWh/year)

608,865 7,200

Energy saved (kWh/year) 0 601,665

Equipment cost 0 40,000

Savings 0 4,738,112

Payback period / ROI NA 2.5 d / 118

Result: >90% saving; ROI: 118

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Case Study 5: Reduced water consumption – electroplating SME in Gurgaon

Improvement actions:

• Conductivity profile of rinse tanks monitored over 3 months

• Based on this, optimum water flow rate implemented

• Operators trained to measure conductivity as a basis for flow rate

Result: 25% saving

ROI ∞

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Bhiwadi SME Cluster Project 2010-11

Project results - summary

₹ 6,256,949

₹ 1,228,000

Annual savings Total investment

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Shimla Hotels Cluster Project 2011-12

INR 2,061,890

INR 1,000,750

Actual savings achieved till date (Rs. per annum)

Actual invested till date (Rs.)

Economic evaluation - Actual return on investment

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Shimla Hotels Cluster Project 2011-12

INR 2,259,308

INR 1,181,507

INR 1,902,923

Savings - payback period

Immediate Less than 1 year 1 to 3.5 years

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STENUM Asia services

• Individual consulting projects on Cleaner Production / Resource Efficiency

• Advisory and/or training on:– Material flow analysis, mass balancing– Energy analysis, energy audit

– Renewable energy– Waste analysis and minimisation

– Water treatment and control

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Other services

• Advisory and/or training on:– Environmental controlling– Process analysis

– Resource management and concepts– CP option implementation

– CP system implementation– CP interventions in residences (ECO Home)

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Summary

• Sustainability: a long term view• Energy scenario:

– Global warming– Energy security

– Huge potential for energy efficiency improvements

• Cleaner Production (CP):– Low cost savings that work

– Methology rather than technology change

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Thank you for your attention

For further details, please contact:

STENUM Asia Sustainable Development SocietySFF 101, Palam Triangle,Palam Vihar,Gurgaon 122017

www.stenum-asia.org

Rajat BATRA+91-9811051918, rajat.batra@stenum-asia.org