1

Beuth University of Applied Sciences Berlin

MBA Renewables

WRITTEN ASSIGNMENT

Energy Management and Energy Efficiency

Lecturer: Dipl.-Ing. Jens Burgtorf

Student: Mario Maras, Dipl. Ing.

Berlin, 28th July 2013

2

Table of contents

1) Task 1. Implementation and Risks of GIZ Project...............................................................3

2) Task 2. Baseline Study for the Tamil Nadu House, New Delhi............................................4

3) Task 3. Tri-generation Project in Hospitals..........................................................................7

4) References...........................................................................................................................9

3

1) Task 1. Implementation and Risks of GIZ Project

Gas price in 2010 - from US $1.8 per mmbtu to US $4.2 pet mmbtu (Million Metric British

Thermal Units) and in 2013 (Oxford, 2011) to US $8.4 per unit (The times of India, 2013)

After initial examination of the paper, on the first the arguments provided by the GIZ have a

good ground. But the fact that the client refused the proposal raises further concerns. The

paper was written from engineering point of view with many assumptions which might and

might not work in real life.

When looking at the annual consumption of gas and price of gas in present - pre tri-

generation plant and future - post tri-generation plant, it was assumed that the consumption

of the gas will increase, but the gas price will decrease which would lead to slight increase of

annual gas bill from 74.72 lakh Rs to 81.78 lakh Rs. It is very important to notice that gas

consumes 32% of energy consumption in hotels and that 74% of gas is needed for heat

production. This leads to conclusion that gas is very important in usage of CCHP plants, so

the gas price is very important aspect. According to the Oxford Energy, the gas price was

increased from US $1.8 per mmbtu to US $4.2 per mmbtu and according to The Times of

India, in 2013 gas price increased to US $8.4 per unit, meaning that gas price increased

4.66 times in just few years which questions economical feasibility of this study.

It was a very good idea to take different applications from the house and make tests for a

year for determining baseline energy consumption, but throughout few tables in the figure it

is obvious that samples had been used. Perhaps, if detailed analysis wants to be done, all

applications should be taken in analysis throughout the whole year. When looking the Table

13. Baseline calculations for HVAC Auxiliary, two mistakes can be found at Primary chilled

water pump - 2 and Cooling tower fan - 2 which say that there are no inventories and some

of them were taken in the account for energy consumption. This might be a slight mistake,

but can also be a major mistake like one with prediction of gas price which leads to

assumption that the whole paper might be inconsistent.

There is no discussion about excess electrical, heating and cooling energy which will be

produced as trigeneration plants are being designed for peak load hours which will definitely

lead to huge amounts of excess energy. This might be sold to utility company and/or be

used by buildings in the neighbourhood. Additional loads might be used when excess of

energy produced occur, for example batteries that can be charged and sold to customers

which will definitely increase revenues and economic feasibility of the whole project. This

excess energy should be used in some way. These systems to work properly with high

efficiency need to be properly designed, i.e. by people with high technical expertise for both,

4

electricity and heat production who should take care on the structural design meaning that

concerns to where the system should stand, how shall it be maintained, which technology

will be used, etc. is very important when examining the proposed project and these

information lack in the study which also question whether the final result will be as planned in

the project. Very important issue that was not mentioned in the paper is the environment

protection of the noise as this is complex system which produces a lot of noise and during

evening and night hours noise should be kept on minimum levels. Concerning pollution,

there will be greenhouse emissions as gas is to be used. Trigeneration plants can work with

biomass, methanol or hydrogen as input fuel. India is known as a country with a lot of

pollution, so another solution with another energy input could have been used.

Trigeneration plants need high initial investment, need further operation & maintenance

investments, need careful planning, designing, secured energy input as they are

independent from regular utility grid, they need very efficient technology, very skilled workers

and managers and everything need to be packed in a very efficient way in order not to

decrease efficiency and produce pollution to the environment. This very different concept

when comparing it the "old" way of plugging the air conditioning into the electricity and

paying the bill one month after. Installing and maintaining these systems, careful planning,

operating and maintaining and investing are needed. What was the final thought from the

client who refused to participate in the project even though all costs would had been paid by

GIZ, I don´t know. But, after examining the paper in details and after reading some of

addition materials, I see lacks in the paper and see that client might be concerned about

many different things, whether they be financially, technically, the data were not sufficiently

gathered nor presented, there are no future obligations concerning detailed maintenance,

i.e. who will do what so maybe the client was just not ready for this kind obligation which also

might be a cultural problem.

2) Task 2. Baseline Study for the Tamil Nadu House, New Delhi

This part of the assignment works on more detailed analysis of the report concerning

determination of energy consumption and expenses throughout the year. When looking at

the first chapter for the first time, the figures seem valuable for implementing the project, but

when examining a little bit further, it is obvious that this report, again, lacks some

information.

5

a) The actual and baseline annual electrical consumption are 12.24 & 12.46 Lakh kWh/year

respectively. The actual and baseline annual natural gas consumption are 3.47 & 3.47 Lakh

scm/year respectively.

Determination of total electrical and natural gas consumption was determined after

examining the bills for the period 2008-09. For the actual and baseline annual electrical

consumption various subsystems were examined like lightning systems, air conditioning

systems (FCUs, AHU, other space conditioning systems), water pumping systems, exhaust

fans, lift details and other electrical appliances (various electronic equipment) using sample

measurements. As stated above, samples can only provide assumptions which might be

realistic and might not be realistic. The more complete study would be if all appliances would

had been used for the measurements for providing more complete study for the client. For

determining of actual and baseline annual natural gas consumption, billing for PNG for

HVAC and kitchen were used. Generally, measurements for one year should be sufficient

enough to provide good assumption for future events, but concerning number of appliances

used it is always better to measure all of them, not just samples. There is no information

about how big the sample was during measurements.

b) The average electrical load post tri-generation in New TN House is 140 kW

Average electrical load is explained in chapter six of the report and must admit that it is very

confusing. For determining average electrical load, power analyzer device was installed on

17th December 2009 but analysis doesn´t say explicitly average electrical load for which

period of time. It would be assumed that for this kind of report, average yearly electrical load

would be more helpful for the analysis, but for this report average electrical load for just one

day was determined. This figure shows that average electrical load is 89 kW. For the tri-

generation plant operation load was calculated to be 51 kW, but more precisely it would be

51.8 kW. When summing 51 kW and 89 kW the result is 140 kW as the figure mentioned as

average electrical load post tri-generation in New TN House. One can assume that post tri-

generation average electrical load is a result of summing operation load and present

electrical load, but this result might be understandable only to the experts, so further

clarification of these figures would be very helpful for the reader.

6

c) The average AC load in New TN House is 155 TR

This conclusion is even more confusing that the above conclusion. More information

gathered and written, and wider analysis would be much better to conduct prior to writing

final analysis, i.e. final report for the client. Available information concerning this matter is

difficult to find on internet which provides further problems in understanding the matter for

the average reader. There is no clarification why January, February and December were

excluded from the analysis, but still the average figure is mentioned which makes no sense.

d) The monitory savings due to implementation of DSM measures & tri-generation project at

New TN House are 45.56 Lakh Rs/year & 24.30 Lakh Rs/year without & with annual O&M

cost of tri-generation project respectively.

As mentioned above, after first examination of the report, the table looked impressive, but

after digging a little bit further, a lot of "holes" can be found. First, there are no clarification

about most of the figures mentioned in the tables, second and most important are the

assumption about further electricity and gas prices. In the task 1, problems concerning this

part were examined, i.e. it was assumed that gas price will not change, but in the next three

years gas price increased 4.66 times which increased potential future costs significantly.

When examining this report from the perspective of the year when it was conducted, it is a

question whether it would be economically feasible in the future.

After working through chapters concerning task 2., it is very obvious that there are problems

with lack of concrete information throughout the whole report, lack of proper future

assumption, measurements were not conducted properly or could had been conducted

much better, a lot of figures in the report were not clarified enough to be understood

properly. In order to procede with similar projects, all measurements should be conducted

detailed during the whole year, assumption about future energy prices should be conducted

more accurately and the report should be more detailed and more understandable for

average readers. As I mentioned few times above, after first looking at the report it looked

impressive, but after digging more and more I would not procede with this investment as this

report doesn´t really show accurate information.

7

3) Task 3. Tri-generation Project in Hospitals

Implementation of tri-generation plants in health care, i.e. hospitals is indeed a very good

idea. Hospitals exist for providing health care to people without intermission and therefore,

constant energy supply is needed - whether being discussed electricity, heating or cooling.

All electrical appliances in rooms, lifts, surgery rooms, E.R. rooms, offices etc. need to work

without intermission. Hot water for bathing patients, washing hands before/after treatments,

surgeries, etc. is needed, cooling for keeping stable temperature for the patients in the

rooms, and for various equipment and other things that doctors keep in fridges for health

reasons is needed. Health of many people depend on constant electricity, heat and cooling

supply. Therefore, hospitals usually have their own back-up systems which are usually very

old and use old and less efficient technologies and solutions providing unnecessary high

costs. Implementation of tri-generation in hospital would have been indeed excellent idea.

The first thing that is needed for implementing this project are of course the will to do it and

securing investment for developing the project. If these are secured, planning and designing

phase starts. It is necessary to examine buildings, examine their purpose and start from

there. When planning thermal system, it must satisfy five needs: refrigeration, heating,

domestic hot water, hot water for sterilization, hot water for air treatment units. It is important

to decide which power cycle will be used, and as already used in many other facilities -

topping cycle - primary source of energy generate electrical or mechanical power, then the

rejected heat in form of useful thermal energy is supplied to the process, is usually used.

Determination of thermal and electrical demand, and adjusting the system to it is needed, i.e.

the system must cover all thermal and electrical needs of a hospital. There are many power

engines that can be used in developing tri-generation projects (vapour engine, gas turbine,

internal-combustion engine, micro turbines, etc), but for hospital only internal-combustion

engines are recommended. It is important to notice that maximum temperatures must be

around 100 0C. Concerning economic aspect there are parameters that need to be taken

into consideration: cost of initial investment, operation costs, income forecast. Cost of initial

investment consists of the budget for provision of the contracted services and of safety and

health. It includes purchase and installation of the equipments, civil work, engineering,

legalizations and quality control. Operation costs include fuel costs, operation and

maintenance staff, salaries and general maintenance needs (like engines lubricating oil,

additives, etc.). Income forecast is obtained from the price of sale of the excess electricity to

the grid providing positive cash flow which is highly influenced by present regulation

conditions. Investment figures like payback time, NPV, IRR need to show economic

feasibility of the project. Viability of the project can be influenced also by cost of present fuel,

purchase price of electricity, costs of natural gas, price of sale of the remaining electricity.

8

There are many factors that need to be taken into consideration like proper informing, prior

energy auditing, budgeting, selection of proper technology, satisfying needs for every

different building, securing energy supply, securing sales of excess electricity and taking

care of operation & maintenance after all work is finished.

9

4) References

C. M.González-Navarro, A.M.Blanco-Marigorta, and J. A.Peña-Quintana, 2011. [report]Design of a trigeneration system for a hospital complex in Gran Canaria. Last accessed 25thJuly 2013

The Times of India, 2013. [online] Available at:http://timesofindia.indiatimes.com/business/india-business/Power-CNG-to-get-costlier-as-100-hike-in-gas-price-cleared/articleshow/20806265.cms. Last accessed: 22th July 2013

Anil Jain and Anupama Sen, 2011. [report] Natural Gas in India: An Analysis of Policy. Lastaccessed: 20th July 2013