Energy Conservation in Industries – Potential & Need
Industrial profits usually leakout through inefficient energy
utilization. Increasing industrial competition and ever-increasing
costs of available forms of energy, especially fossil fuels, have
focussed attention on the need to cut down on wasteful energy
consumption - to enhance & to sustain industrial profits. Since an
Energy Audit helps in identifying the areas where there is wastage
and where scope for conservation exists, it has become an important
tool in crucial management decisions.
Energy Audit is a positive approach to energy cost reduction,
preventive maintenance and quality control programmes. It helps keep
alive variations which occur in energy costs, availability and
reliability of energy supply, decide the appropriate energy mix,
select the right conservation technology, retrofits for energy
conservation equipment, etc.
Energy Audit translates conservation ideas into actual money
saved. It blends technically feasible solutions with economic and
other organisational considerations within a specified time frame.
It is more beneficial than a piecemeal introduction of short-term
measures, as it is a comprehensive strategy that also envisages
gearing up of organisational structure and other infrastructure
requirements.
Estimated energy conservation potential in Indian Industries is
given in the Table given below. Marginal investments are required
for improving energy efficiency which is justified by the short
payback periods..
Table: Energy Conservation Potential in Indian Industries
The industrial sector is a major energy-consuming sector
accounting for about 50 % of the commercial energy available in the
country. The total energy consumption, including non-energy uses
about 105 mtoe. Of the commercial sources of energy, coal & lignite
account for 56%, oil & natural gas – 40%, hydroelectric power 3% and
nuclear power 1%.
|
INDUSTRIES |
% SHARE OF ENERGY
IN PRODUCTION COST |
% CONSERVATION POTENTIAL |
|
Refineries |
1 |
8-10 |
|
Sugar |
3.4 |
25-30 |
|
Ferrous Foundry |
10.5 |
15-20 |
|
Textile |
10.9 |
20-25 |
|
Petrochemical |
12.7 |
10-15 |
|
Chloro-alkali |
15 |
10-15 |
|
Iron & Steel |
15.8 |
8-10 |
|
Fertilizers & Pesticides |
18.3 |
10-15 |
|
Pulp & Paper |
22.8 |
20-25 |
|
Glass |
32.5 |
15-20 |
|
Ceramics |
33.7 |
15-20 |
|
Aluminum |
34.2 |
8-10 |
|
Cement |
34.9 |
10-15 |
|
Ferro-alloys |
36.5 |
8-10 |
Energy Audit
An Energy Audit Study
helps an organisation to understand and analyse its energy
utilisation and to identify areas where energy use can be reduced,
to budget energy use, plan and implement feasible energy
conservation measures 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 Study
includes
-
Auditing of Energy
Consumption (including any heat and power generated)
-
General examination
of work place (including physical condition of organisation, its
processes, occupancy time, and variations in ambient temparature
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 usages of co-generation, renewable sources of energy
and recommendations for implementation, wherever possible, with
cost benefit analysis.
Objectives of Energy
Audit
The objective of
providing EAS subsidy is to promote the idea of Energy Conservation
in the industrial sector of Gujarat. The work eligible for Energy
Audit Study should be directed towards:
-
Identification of
areas of energy wastage and estimation of energy saving
potential
-
Suggesting
cost-effective measures to improve the efficiency of energy use,
-
Estimation of
implementation costs and payback periods for each recommended
action and
-
Documenting results &
vital information generated through these activities.
The Incentive – GEDA
Energy Audit Subsidy Scheme
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-converntional Sources of Energy
and Energy Conservation.
The industrial sector is
the largest consumer of commercial energy and evidently the sector
with maximum potential for conservation of vital energy resource of
the country. There is a potentila for conserving 30-40% energy in
some key industrial clusters. Absence of systematic energy
monitoring mechanism is a major factor that is responsible for a
large amount of unproductive energy utilisation in industries.
GEDA’s Energy Audit Scheme provides an opportunity to industries to
visualise the advantages of systematic energy analysis and increase
their profit through better efficiency. Energy audits of industrial
units, commercial complexes, hotels and hospitals are covered under
this subsidy scheme.
The subsidy will cover
upto 50 % cost of the Energy Audit Study (EAS), upto a maximum of
Rs.20,000/-. Industries with a electrical CD of less than 200
kVA and commercial complexes with a electrical CD less than 75 kVA
would only be eligible for subsidy under this Scheme.
GEDA Authorized Energy
Audit Consultants
GEDA has authorized
Energy Audit Consultants for providing consultancy services to the
industries under the EAS Subsidy Scheme. Energy audits conducted by
these authorized Energy Audit Consultants would only be eligible for
the subsidy. List of GEDA authorised Energy Audit Consultants can be
made available on request to the industries.
Energy Conservation - The
Savings
It has been established through over 2000 industrial energy audit
conducted in the State during past one decade that there is a
potential for saving 5 to 50% energy in different types of
industries. Types of industries audited include chemical,
pharmaceutical, dyestuff, textile & textile processing, metal
processing, bakeries, paper & pulp, engineering, electrical,
agricultural & food processing, hotels, commercial complexes, etc.
By following good house-keeping and proper operational practices
alone can reduce energy consumption by 5 - 10 %. About 10 - 15
percent energy can be saved by use of high efficiency equipments and
30-50% energy can be saved by replacing obsolete manufacturing
machinery with modernising plants. Investments on modernisation
projects are paid back within period of 2 to 3 years through energy
saving achieved and considering present bank inflation rate this
kind of return is considered to be good.
Procedures for Applying For Subsidy
-
An industry willing
to avail subsidy is required to apply in the format in Form I.
Services of GEDA authorized Energy Audit Consultant engaged may
be taken for applying procedures.
-
Application should be
submitted to GEDA office alongwith
-
Subsidy sanction
issued by GEDA would indicate subsidy amount; elaborate scope of
study; duration of study (with last date for report submission)
and Terms & conditions of sanction.
Procedures for
Claiming Subsidy
-
Submission of one
copy of draft Energy Audit Report, alongwith industry’s comment,
to GEDA before the specified last date.
-
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.
-
Acceptance of the EA
Report, with modifications, if any, after the formal
presentation.
-
Submission of 2
copies Final Report, spirally or comb bound, alongwith the
Declarartion (as per Form II) duly signed/sealed, proof of
payment made to the Energy Audit Consultant for the EA study and
implementation energy conservation measures suggested in the
report with time schedule, estaimates of savings and investments
required.
|
It is recommended that the Industry should take up
implementation of energy saving measures as per the
recommendations of the EA Report and closely monitor the
results. |
Terms and Conditions
of EAS Subsidy Sanction
-
The scope of the EA
Study would be as specified by GEDA in its sanction.
-
The work eligible for
the EAS subsidy would include assessment of energy use in the
industry, outline of cost-effective measures, scope of energy
saving, estimates of investments for implementation of
corrective measures suggested, payback periods and reporting of
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.
-
Any industry within
the Gujarat will be eligible for availing subsidy under this
scheme 'once' provided the industry has not availed subsidy
under any other government scheme.
-
Energy audits
conducted by GEDA authorized Energy Audit Consultants will only
be valid for availing subsidy under this scheme.
-
The energy audit must
be conducted as per the scope defined in GEDA's sanction letter.
Any deviation in the specified scope of study will result in
cancellation of the subsidy.
-
The industry must
forward the draft report to GEDA with its comments. A formal
presentation of the report by the Energy Audit Consultant, in
the premises of the industry should be arranged in the presence
of GEDA official(s) and concerned executives from within the
industry. Only after the presentation and discussion the report
will be accepted.
-
The claim for subsidy
is subject to the sanction issued by GEDA. Any claim without a
prior sanction of GEDA would not be entertained. All payments
made by the industry to the Energy Audit Consultant should be
done so by cheque or demand draft only.
-
It is mandatory for
the industry to implement EC measures so as to achieve atleast
20% of the financial saving projected in the Final Report.
-
GEDA shall follow up
on the post-audit implementation by the industry, with either a
written communication or a personal visit by its representative
to the industry. The industry would be obliged to respond
positively to such visits and/or correspondences.
-
GEDA reserves the
right to reject an application for EAS subsidy without giving
reasons and to change the terms and conditions of the scheme and
to terminate the scheme at any time.
-
The Energy Audit
Report would be a confidential document. However, GEDA reserves
the right to use and publish data and information generated
during the study, for dissemination to other similar industries.
The industry may have the option of not indicating its name on
the Report. In such cases GEDA's sanction number & date should
be mentioned in the Report.
-
If the study is not
completed within the specified time limit, GEDA may decide to
cancel the subsidy. However, extension, if required, may be
requested, before the due date of reporting, stating reasons for
the extension. It would be at GEDA's discretion to grant such
extension.
-
Terms Of Payment Of
Energy Audit Subsidy
GEDA shall release
subsidy amount directly to the industry against submission of two
copies of the Final Report. The industry shall submit the subsidy
claim letter alongwith `Declaration' (Form II) and proof of payment
released to the Energy Audit Consultant. The subsidy would be
disbursed as follows:
-
100 % against
submission of the Final Report if subsidy amount is less than
10000/-
-
If subsidy amount is
more than 10000/- than
-
50% against
submission of final report
-
50 % against
submission of the post-audit feedback report, duly certified
jointly by the industry and the Energy Audit Consultant.
For details contact:
Sr.Project
executive/Assistant Project executive,
Gujarat Energy devlopment agency,
4th floor, Block No 11-12, Udyog Bhavan,
Sector-11, Gandhinagar.
