The Gujarat Energy Development Agency (GEDA), established in 1979 by the Government of Gujarat, is a non-profit making nodal agency, devoted to the R & D and promotion in the field of Non-conventional Sources of Energy and Energy Conservation.

The industrial sector consumes large share of nations commercial energy and there is evidently a large potential for conserving 25-30% energy by following good energy management practices.

The Government of Gujarat in order to encourage energy efficiency in the industrial sector has passed a resolution to make industrial energy audits mandatory for all industrial units having contract demand of 200 kVA and above.

A large section of the small-scale industries of Gujarat accounting for a sizable share of commercial energy consumption is not covered under this mandatory provision. However, there is a tremendous scope for efficiency improvement in this section of the industry having great implication on the State’s energy scenario. The small-scale industries lack in terms of manufacturing technology and skilled manpower required for efficient working. Investments on sophisticated energy monitoring systems and technically qualified manpower by these industries are difficult to imagine.

With the objective to promote energy efficiency improvement in the smaller industrial units and to tap the huge energy saving potential GEDA has launched the Group Energy Audit Subsidy Scheme (GEAS) during the current year.

GEAS Subsidy Scheme offers 60% subsidy on the cost of energy audit conducted for a group of five or more similar type of industries within Gujarat State. The subsidy amount is limited to a maximum of Rs.40,000/- per group energy audit to be conducted by GEDA authorized Energy Audit Consultants only.

THE OBJECTIVE

The objective of the scheme is to promote energy efficiency improvement in the small-scale industrial sector of Gujarat. The subsidy is given to enable small industries to hire costly consultancy services of energy professionals for improving their performance and reducing their energy expenditure.

ENERGY AUDIT STUDY

Energy Audit Study helps an industry to understand and analyse its energy utilisation and identify areas of energy wastage, decide how to budget its energy use, plan & practice feasible energy conservation methods that will enhance their energy efficiency, curtail energy wastage and substantially reduce energy costs.

The Energy Audit serves to identify all the energy streams in a facility, qualify energy usage with its discrete functions, in an attempt to balance the total energy input with its use. Energy Audit is thus the key to a systematic approach for decision-making in the area of Energy Management. As a result, the Energy Audit Study becomes an effective tool in defining and pursuing comprehensive Energy Management Programme (EMP).

Energy audit of a group of similar type of industries will help generate vital information on different energy utilization patterns & practices followed and single out best practices in particular industrial sector. Group energy audit will generate greater awareness energy efficiency and help small industries to operate more profitably.

Energy Audit Study should be directed towards

• Identifying cost-effective measures to improve the efficiency of energy use,
• Estimates of potential energy saving, implementation costs and payback periods for each recommended action, and
• Documenting results & vital information generated through these activities.

An Energy Audit Study includes

• Auditing of Energy Consumption (including any heat and power generated)
• General examination of work place (including physical condition of organization, its processes, occupancy time, and variations in ambient temperature and energy consumption pattern etc.)
• Measurement of all energy flows.(including testing of boiler or steam raising, heating equipment, refrigeration, etc.)
• Analysis and appraisal of energy usage.(e.g. specific fuel consumption, energy-product interrelationship).
• Energy management procedures and methodology.
• Identification of energy improvement opportunities and recommendations for energy efficiency measures and quantification of implementation costs and paybacks.
• Identification of possible usage of co-generation, renewable sources of energy and recommendations for implementation, wherever possible, with cost benefit analysis.

Energy Conservation - The Energy Saving Potential

GEDA has supported a number of group energy audit studies in the past for several types of small industries in the state, viz. bakery, rolling mill, cold storage, chemical dyestuff, brass foundry, textile & textile processing, metal processing, bakeries, paper & pulp, engineering, electrical, agricultural & food processing, hotels, commercial complexes, etc.

It is observed that by following good house-keeping practices and following proper operational practices alone can reduce energy consumption by 5 - 10 percent. About 10 - 15 percent energy can be saved by use of high efficiency equipment. Application of alternative processes and modernization in many industries can reduce energy consumption by even as high as 30 - 50 percent.

Procedures for Applying for Subsidy

1. Application Form for requesting GEAS subsidy and list of GEDA authorized Energy Audit Consultants may be obtained from GEDA Office or may downloaded from GEDA’s Website – www.geda.org.in
2. Consultants, for conducting the energy audit, must be selected from the list of GEDA authorized consultants. Assistance of the Consultant can be taken for application formalities.
3. Separate application forms, for each industry of the group, must be submitted alongwith technical & financial offer of the EA Consultant engaged duly sealed & signed by authorized signatory. The application must be forwarded by respective Industrial Association or the consultant engaged for the energy audit.
4. Application should be submitted to GEDA office alongwith

• Energy audit proposal with financial offer of the Consultant engaged for the job.
• Latest Annual Report of the applicant industry.
• Latest electricity bill of the applicant industry.

5. GEDA will appraise the GEAS application and issue a sanction to each applicant industry with a copy to Industrial Association and the Consultant engaged for conducting the energy audit.
6. Subsidy sanction issued by GEDA would indicate

• Subsidy amount
• Detailed scope of study
• Duration of study (with last date for report submission)
• Terms & conditions of sanction.

Procedures for Claiming Subsidy

1. Submission of one copy of draft Energy Audit Report, alongwith industry’s comment, to GEDA before the specified date of completion of audit.
2. Formal presentation of the report by the Consultant, in presence of GEDA representative and the concerned executives from the industry. The presentation to be arranged in the premises of the Industry, with prior intimation, on a mutually convenient date.
3. Acceptance of the EA Report, with modifications, if any, after the formal presentation.
4. Submission of 2 copies Final EA Report, spirally or comb bound alongwith the Declaration (as per Form II) duly signed / sealed, proof of payment made to the Consultants for the EA study and EC implementation program/schedule with details of savings.

Terms and Conditions of the Group Energy Audit Subsidy Scheme (2007-08)

1. Industries having contract demand less than 200 kVA are only eligible for applying.
2. The work eligible for availing the subsidy would include

• Assessing in quantitative terms the energy used in various equipment and processes as outlined in the scope of study and identifying cost-effective measures to improve the efficiency of energy use, forming the estimates of potential energy saving, implementation costs and payback periods for each recommended action, and
• Reporting results of these activities.
• Other works, in particular tariff comparison and analysis, preparation of tender specifications and tender evaluation, detailed design work, work connected with implementation of measures and long-term consultancy work are not eligible for subsidy under the scheme.

3. Industrial units / plants of similar type (services / product type) within Gujarat State would be eligible to avail subsidy under this scheme. Group of atleast 5 industries of similar type, are required for applying for subsidy under the scheme.
4. Application for Group Energy Audit subsidy must be forwarded by or through registered Industrial Associations.
5. Application must be attached with all requisite information and documents.
6. Energy Auditor engaged must be authorized by GEDA.
7. Subsidy would be subject to prior approval of GEDA. Any claim without a prior written approval of GEDA shall not be entertained.
8. The cost of audit proposed will be subject to approval of GEDA and 60% subsidy will be limited to a maximum of Rs. 40000/- or the amount decided by GEDA.
9. The scope of the Energy Audit would be as approved by GEDA and conveyed in the letter of sanction. Claim of subsidy, for studies where substantial changes have been made in the defined scope of study, shall not be granted.
10. The energy audit can be initiated after submission of application to GEDA; however, any changes in the scope of study, given in GEDA’s sanction, shall have to be incorporated in the study.
11. GEDA reserves the right to reject an application without giving reasons and to change the terms and conditions of the scheme and to terminate the scheme at any time.
12. A copy of draft Energy Audit Report/s shall be submitted to GEDA with comments of the Industry. The Consultant shall make a formal presentation of the EAS report, in the premises of the Industry, in presence of GEDA official(s) and concerned executives from the Industry. The report would be formally accepted after the presentation, discussion and industrial visit by GEDA.
13. Industries may release its share of 25% directly to the consultant before submitting the final report to GEDA. All payments made by the industry to the consultants must be by cheques or DDs only and original receipts must be collected from the consultant for all payments.
14. The approved amount of subsidy would be released, by GEDA, directly to the consultant on successful completion of the work as per the terms & conditions of subsidy sanction.
15. The Industry/ies must undertake to respond positively to all inquiries, on the post-audit implementation work, made by GEDA either with a written communication or personal visit of its representative.
16. The EAS Report would be a Confidential Document. The industry has the option of not indicating its name on the EAS Report. In such case GEDA's sanction no. and date must be mentioned on the cover page of the EAS Report. GEDA, however, reserves the right to use the data and information generated for dissemination to other similar industries.
17. If the study is not completed in the prescribed time frame, GEDA may decide to cancel the subsidy approved. However, written request for extension, if required, must be submitted by the Industry before the due date of completion, stating reasons for the delay. It would be at GEDA's discretion to grant extension.
18. Terms of Payment of Energy Audit Subsidy

Full payment must be made to the Consultants before submitting the claim for subsidy to GEDA.

The subsidy amount would be released directly to the Consultant against submission of the proof of payment/s received from the industries (photocopies of cheques / DDs received & payment receipts issued) and two copies of the Final EAS Report. The claim for subsidy must be submitted alongwith the “Declaration Form” duly signed by authorised signatory of respective audited industry. The subsidy amount would be disbursed as follows:

• 50% against submission of Final EAS Report (2 copies of combined report)
• 50% against submission of feedback on the post-audit implementation work in the audited industries within three months of submission of the Final Report.

For details contact:

Director
Gujarat Energy Development Agency
Udyog Bhavan, Block-11/12, 4th Floor,
Sector – 11, Gandhinagar – 382 017