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Overview of the Indian policies to promote industrial energy
efficiency and possibilities for shared learning
K. K. Chakarvarti,
Expert Consultant,
New Delhi
Roundtable Discussion
28th September,2016
1
Contents
Legislative and Institutional Framework on
Energy Efficiency in India
EE Initiatives in Industry
National Mission for Enhanced Energy
Efficiency (NMEEE)
Voluntary Initiatives to promote Energy
Efficiency
Conclusions
2
1
2
3
4
5
Legislative and Institutional
Framework
3
Energy Efficiency in India
1
EC Act enacted in October 2001
The five major provisions of EC Act relate to:
Designated Consumers
Standards and Labeling
Energy Conservation Building Code
Creation of Institutional Set up (Bureau of Energy
Efficiency at the Federal level)
Establishment of Energy Conservation Fund at
Centre and States Schedule to EC Act provides list of 15 energy intensive industries and other establishments to be notified as designated consumers (DC). A DC to
Comply with energy consumption norms and standards
4
THE INDIAN ENERGY CONSERVATION ACT
Energy Efficiency Initiatives
5
Industry
2
6
DCs - Energy Manager Certification
11 energy intensive industry have been notified as
designated consumers (DCs)
The Government of India has specified the passing
of the National level certification examination as the
qualification for Certified Energy Manager and
energy auditors to be appointed by industry.
17 certification examinations have been conducted
since 2004 in 24 main cities (12,228 qualified
certified Energy Managers out of which 8,536 are
certified Energy Auditors from last 15 exams)
National Mission for
Enhanced Energy Efficiency (NMEEE)
7
3
Mission was approved by Indian Cabinet
on 24th June, 2010 with an 11th Plan outlay
of Rs.2350 Million (US $ 39 Million).
Indian Cabinet has approved continuation
of the Mission for 12th Plan on 6th Aug., 2014
with an outlay of Rs.7750 Million (US $ 129
Million).
National Mission for Enhanced Energy Efficiency (NMEEE)
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Perform Achieve and Trade
scheme
9
Regulatory instrument linked with market mechanism
Certification of energy saving
Consultative approach
Ministries/DCs/Associations/FIs/Research Organizations
Outreach/ Capacity Development
Workshops/Seminars/ Visits
“Self – competing”
Unit specific targets
Relative responsibility
Less target for more efficient and more for less efficient
Supports improvement in energy management system
measurement, recording and reporting
PAT- Salient features
10
PAT Overview and
Elements
11
• PAT Cycle – I Covers 478 plants in 8 energy intensive industrial sectors
• PAT Cycle-II, covers 621 plants in 11 energy intensive industrial sectors
(three new sector, Refinery, DISCOMS and Railway has been added, with
addition of new DCs in existing as well)
• Key Goal :Mandatory Specific Energy Consumption reduction
PAT Overview and Elements
PAT Cycle-1
S.NO. Sector No. of
Identified DCs
Annual Energy
Consumption (Million
toe)
Share Consumpti
on (%)
Apportioned Energy
Reduction For PAT Cycle-1
(Million toe)
1 Power (Thermal) 144 104.56 63.38% 3.211
2 Iron & Steel 67 25.32 15.35% 1.486
3 Cement 85 15.01 9.10% 0.815
4 Aluminium 10 7.71 4.67% 0.456
5 Fertilizer 29 8.20 4.97% 0.478
6 Paper & Pulp 31 2.09 1.27% 0.119
7 Textile 90 1.20 0.73% 0.066
8 Chlor- Alkali 22 0.88 0.53% 0.054
Total 478 164.97 100.00% 6.686
Total EE Projects planned in 2012-15: 2057
Total anticipated investment : US$ 3095 million
The direct benefit for the participating industries in this period is reductions
in input costs related to energy of approximately US$ 1250 million.
Sectoral Share in Energy Saving Target (%)
(2012-15)
Reduction in India's CO2
emissions by 24 million tons /
year in 2014-15.
12
Cement Sector: Baseline and Targets - An Example
Energy Transition for Industry: India and the Global Context, IEA, Jan 2011
13
Although Indian Cement Sector being at par with the World
best energy intensity, but still has agreed for energy saving
targets of 0.85 million ton of oil equivalent energy under PAT
Japan
India
ENERGY SAVINGS CERTIFICATES (ESCerts)
The energy savings certificate shall be issued in electronic form.
The value of one energy savings certificates shall be equal to one
metric ton of oil equivalent of energy consumed.
The designated consumer who has been issued energy savings
certificates may sell them through the power exchange. Each
certificate will be unique tradable commodity which will be
traded in two exchanges
The designated consumer who has been issued the energy
savings certificates during the current cycle may use them for the
purpose of banking until the next compliance cycle after which
they stand expired.
PAT-I : CEMENT SECTOR-SUMMARY (DRAFT) PAT-1 : ACHIEVEMENTS- CEMENT SECTOR (DRAFT) ( Tentative Data, subject to change )
Notified Units Energy Consumption in Base Year (2009-10) MTOE
Target Savings to be achieved in 2014-15 (MTOE)
Achievements Made (MTOE) -DRAFT
Percentage Over achievement
85 15.01 0.815 1.480 81.6
15
Specific Energy Consumption Reduction - 8.5% (Un-normalised)
Specific Energy Consumption Reduction - 11% (Normalised)
Total investment - Rs. 25480 Millions
( 280 Million GBP)
Waste Heat Recovery power Project implementation
- 11 nos. (159 MW)
ESCerts for Individual Sector ( PAT-I)
Sector
Target Achieved ESCERTS to be issued in
Nos No of DC Saving in
Million TOE No of DC Saving In
Million TOE
Aluminum 10 0.486 10 0.73 244000
Cement 85 0.815 74 1.44 625000
Chlor- Alkali 22 0.054 22 0.10 46000
Fertilizer 29 0.478 29 0.83 352000
Iron & Steel 67 1.486 60 2.10 614000
Paper & Pulp 31 0.119 26 0.26 141000
Textile 90 0.066 82 0.12 54000
Thermal Power Plant
144 3.211 123 3.06
Total 478 6.685 427 8.64 2076000
Introduction to PAT-II ( 2016-17 to 2018-19)
Ministry of Power Notification on 31st march 2016 - PAT cycle-II- Target for DC’s notified.
3 more Sectors included in PAT cycle -2 namely:
- Petroleum Refinery.
- Railway – Zonal Railways – Production – Workshops.
- Electricity Distribution Companies (DISCOMs).
Sr.
No
Sector No. of DCs in
PAT I
Total no. of
DCs PAT -2
1 Aluminium 10 12
2 Chlor-Alkali 22 24
3 Textile 90 99
4 Pulp & Paper 31 29
5 Iron & Steel 67 71
6 Fertilizer 29 37
7 Cement 85 111
8 Thermal Power
Plants
144 154
9 Refinery NA 18
10 DISCOMS NA 44
11 Railway NA 22
Total 487 621
PAT Cycle II Baseline Year: 2014-15 PAT Cycle year 2016-2019 Assessment Year: 2018-19 M&V period: Apr-2019 to 31st July2019
Total Energy Consumption from 11 sectors 227 mtoe
National Target = 8.869 mtoe at the end of 2nd PAT Cycle (by 2018-19)
PAT-II Overview and Status
Normalisation Factors- Broad Categorization
Plant Capacity Utilisation Natural Disaster & Unforeseen Circumstances
Product Mix Intermediary products
Power Mix
Fuel Mix
CPP PLF
Fuel Quality in CPP
Environmental Concern
Market Transformation due to PAT
–Common Areas of Investment
Energy Efficient Technologies and Processes
Power, Steel, Cement, Fertiliser, Pulp & Paper, Aluminium, Chlor Alkali, Textile
Waste Heat Recovery/ Co Generation
Steel, Cement, Pulp & Paper, Aluminium, Chlor Alkali, Textile
Alternate Fuel and Raw Material Steel, Cement, Pulp & Paper, Aluminium, Chlor Alkali, Textile
Renewable Energy
Steel, Cement, Pulp & Paper, Aluminium, Chlor Alkali, Textile
Biomass as Fuel
Steel, Cement, Pulp & Paper, Aluminium, Chlor Alkali, Textile
High Pressure Boiler for Optimum power output Pulp & Paper, Aluminium, Textile
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For Designated Consumers
Improvement in Energy Intensity will bring down the
specific input energy cost and ultimately triggers
higher profit in company’s balance sheet
The DCs can trade over achieved Energy efficiency
in the trading platform to the under achiever
Capacity building of Man power
For Technology Suppliers
Business opportunities in terms of lower payback
period of energy efficient technologies.
For Service Company’s
Opportunities in terms of Energy Auditing, capacity
buildings, Implementation of projects as ESCO model
All win situation
21
Voluntary Initiatives to
promote Energy Efficiency
22
4
ISO 50001 Energy Management System
More than 300 industrial units have declared their energy management policy .
PAT mechanism has all factors which are part of EnMS
Around 270 establishments including buildings and industry in India have been certified for ISO 50001 EnMS
The Delhi International Airport Limited (DIAL) became the first airport operator and Dahanu Thermal Power Station, Maharashtra (India) became the first Thermal Power Station in the world to receive this certification after its publication in mid 2011.
23
Knowledge Exchange Platform-
A voluntary initiative to promote energy efficiency in Indian Industry
KEP was established in India on 26th Feb.,2015
to provide a vibrant platform, anchored at BEE, to
support PAT industry through promotion of
knowledge transfer on best practices, information
exchange on innovative technologies, Energy
Management System, facilitate policy discussion
forums and friendly energy efficiency exchange
visits.
MoU signed between Bureau of Energy Efficiency (BEE)
and Institute for Industrial Productivity (IIP)
KEP Action plan and News Letter released by Secretary,
Ministry of Power
KNOWLEDGE EXCHANGE PLATFORM (KEP)
KEP LAUNCH (26th February,2015)
Participants at the Best Practice Workshops and Roundtable organised by KEP
Conclusions A Scheme to incentivize the industry to achieve
better energy efficiency
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5
CONCLUSIONS
The PAT scheme is a unique and innovative programme with no
precedence anywhere else in the world.
PAT would become a valuable model for other emerging
economies to adopt for their own energy efficiency programmes
with a business perspective.
The PAT scheme also sets an innovative approach of introducing
market-based instruments within a regulatory framework to
encourage compliance.
PAT has encouraged adoption of energy efficient and Low carbon
technology, use of renewable , waste heat recovery and use of
Alternate fuel and raw materials (AFR) in Indian industry.
Knowledge Exchange Platform has now established its name in
India and supporting PAT industry through promotion of
knowledge transfer on best practices, information exchange on
innovative technologies, Energy Management System, facilitating
policy discussion forums and friendly energy efficiency exchange
visits.
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FIR
ST P
RIZ
E
US$
20
00
K R Roshni, Standard V, Tamil Nadu (India)
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First Prize Winning Painting-
Visit us at www.knowledgeplatform.in
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