POWERGRID Efficiency Book

Negawatt - Makes a Watt
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................xiii
1.
2.
3.
4.
5.
ENERGY EFFICIENCY OVERVIEW .................................................................................................1

1.1.
INTRODUCTION ............................................................................................................................. 1
1.2.
ENERGY EFFICIENCY ACTIVITIES ..................................................................................................... 2
1.3.
ENERGY EFFICIENCY WHY WE NEED IT? ...................................................................................... 3
1.4.
ENERGY EFFICIENCY BARRIERS TO OVERCOME .......................................................................... 5
INDIAN ENERGY SCENARIO & EFFICIENCY OPPORTUNITIES ...................................................9

2.1.
INTRODUCTION ............................................................................................................................. 9
2.2.
PRESENT ENERGY SCENARIO .......................................................................................................... 10
2.3.
PRIMARY ENERGY RESOURCES ....................................................................................................... 11
2.4.
PER CAPITA ENERGY CONSUMPTION AND ENERGY INTENSITY.................................................... 12
2.5.
PROJECTED DEMAND SCENARIO ................................................................................................... 13
2.6.
FUTURE ELECTRICITY SCENARIO AND NECESSITY OF RESOURCE MIX & ..................................... 13

ENERGY EFFICIENCY
2.7.
ENERGY EFFICIENCY OPPORTUNITY IN PAT INDUSTRIES .............................................................. 14
2.8.
REFERENCES..................................................................................................................................... 16
THERMAL POWER PLANTS ..........................................................................................................17

3.1.
INTRODUCTION ............................................................................................................................. 17
3.2.
PERFORMANCE OF INDIAN COAL POWER PLANTS ....................................................................... 18
3.3.
INDIAN ECONOMY AND THERMAL POWER PLANTS .................................................................... 19
3.4.
ENERGY EFFICIENT THERMAL POWER PLANTS .............................................................................. 19
3.5.
SAVING POTENTIAL AND INVESTMENT .......................................................................................... 23
3.6.
CASE STUDY ON THERMAL POWER PLANT ................................................................................... 25
3.7.
CONCLUSION.................................................................................................................................. 25
3.8.
REFERENCE ...................................................................................................................................... 26
STEEL & IRON SECTOR ................................................................................................................27

4.1.
INTRODUCTION ............................................................................................................................. 27
4.2.
INDIAN ECONOMY AND STEEL INDUSTRY .................................................................................... 28
4.3.
WORLD STEEL PRODUCTION DATA ............................................................................................... 29
4.4.
ENERGY CONSUMPTION ................................................................................................................ 30
4.5.
4.6.
CASE STUDY ON ENERGY EFFICIENCY ............................................................................................ 31
4.7.
CONCLUSION.................................................................................................................................. 33
4.8.
REFERENCES..................................................................................................................................... 33
CEMENT INDUSTRY.....................................................................................................................35
5.1.
INTRODUCTION ............................................................................................................................. 35
5.2.
INDIAN ECONOMY AND CEMENT INDUSTRY................................................................................ 35
Table of Contents
iii
6.
7.
8.
9.
5.3.
GROWTH TREND OF CEMENT PRODUCTION IN RECENT YEARS ................................................. 35
5.4.
ENERGY CONSUMPTION BY CEMENT PLANTS............................................................................... 36
5.5.
MAJOR ENERGY CONSUMING AREAS IN CEMENT INDUSTRY ....................................................... 36
5.6.
5.7.
CONCLUSION.................................................................................................................................. 42
5.8.
REFERENCE ...................................................................................................................................... 42
CHEMICAL INDUSTRY .................................................................................................................43

6.1.
INTRODUCTION ............................................................................................................................. 43
6.2.
INDIAN ECONOMY AND CHEMICAL INDUSTRY ............................................................................ 43
6.3.
CHLOR-ALKALI INDUSTRY .............................................................................................................. 44
6.4.
FERTILIZER INDUSTRY ..................................................................................................................... 47
6.5.
PETROCHEMICAL INDUSTRY .......................................................................................................... 48
6.6.
CONCLUSION.................................................................................................................................. 50
6.7.
REFERENCES..................................................................................................................................... 50
ALUMINIUM INDUSTRY ..............................................................................................................51

7.1.
INTRODUCTION ............................................................................................................................. 51
7.2.
ENERGY CONSUMPTION IN ALUMINIUM SECTOR ........................................................................ 53
7.3.
7.4.
ENERGY EFFICIENCY MEASURES IN ALUMINIUM INDUSTRY ......................................................... 54
7.5.
CONCLUSION.................................................................................................................................. 55
7.6.
REFERENCES..................................................................................................................................... 56
PULP AND PAPER INDUSTRY ......................................................................................................57

8.1.
INTRODUCTION ............................................................................................................................. 57
8.2.
INDIAN PAPER INDUSTRY ............................................................................................................... 59
8.3.
PAPER RECYCLING IN INDIA ........................................................................................................... 60
8.4.
8.5.
8.6.
ENERGY EFFICIENT INVESTMENT .................................................................................................... 64
8.7.
CONCLUSION.................................................................................................................................. 65
8.8.
REFERENCES..................................................................................................................................... 65
TEXTILE INDUSTRY ......................................................................................................................67

9.1.
INTRODUCTION ............................................................................................................................. 67
9.2.
INDIAN ECONOMY AND TEXTILE INDUSTRY ................................................................................. 68
9.3.
ENERGY CONSUMPTION IN TEXTILE INDUSTRY ............................................................................ 68
9.4.
ENERGY EFFICIENCY IMPROVEMENTS ............................................................................................ 69
9.5.
ENERGY SAVING POTENTIAL AND INVESTMENT............................................................................ 70
9.6.
ENERGY EFFICIENT INVESTMENT .................................................................................................... 70
9.7.
SOLAR ENERGY POTENTIAL ASSESSMENT IN TEXTILE INDUSTRY .................................................. 73
9.8.
CONCLUSION.................................................................................................................................. 73
9.9.
REFERENCES..................................................................................................................................... 74
10. COMMERCIAL AND RESIDENTIAL BUILDINGS ..........................................................................75
iv
10.1.
INTRODUCTION ............................................................................................................................. 75
10.2.
RESIDENTIAL SECTOR ...................................................................................................................... 76
Table of Contents

10.3.
COMMERCIAL SECTOR.................................................................................................................... 79
10.4.
ENERGY SAVING OPPORTUNITIES .................................................................................................. 81
10.5.
INVESTMENT POTENTIAL IN RESIDENTIAL AND COMMERCIAL BUILDINGS ................................. 83
10.6.
PROJECTED FUTURE TREND OF ELECTRICITY CONSUMPTION IN BUILDING .............................. 83
10.7.
BENEFITS OF INVESTMENT IN BUILDING ENERGY EFFICIENCY ..................................................... 83
10.8.
ENERGY EFFICIENCY MEASURES FOR BUILDINGS .......................................................................... 84
10.9.
CONCLUSION.................................................................................................................................. 86
10.10. REFERENCES..................................................................................................................................... 86
11. MUNICIPAL STREET LIGHTING ...................................................................................................87

11.1.
INTRODUCTION ............................................................................................................................. 87
11.2.
INDIAN SCENARIO OF STREET LIGHTING ...................................................................................... 87
11.3.
BIS STANDARDS FOR STREET LIGHTING ........................................................................................ 87
11.4.
ENERGY INEFFICIENCY CAUSES AND IMPROVEMENTS .................................................................. 88
11.5.
11.6.
CONCLUSIONS ................................................................................................................................ 93
11.7.
REFERENCE ...................................................................................................................................... 93
12. TRANSPORTATION SECTOR ........................................................................................................95

12.1.
INTRODUCTION ............................................................................................................................. 95
12.2.
COMPOSITION OF MOTOR VEHICLES IN INDIA ............................................................................ 96
12.3.
ENERGY CONSUMPTION IN TRANSPORT SECTOR ........................................................................ 97
12.4.
ENERGY SAVING MEASURES IN TRANSPORT SECTOR .................................................................... 98
12.5.
ELECTRONIC TOLL COLLECTION (ETC) SYSTEM ............................................................................. 99
12.6.
TRAFFIC LIGHT SYNCHRONIZATION & GPS ENABLED VEHICLES.................................................. 100
12.7.
COMPARISON OF INDIAN FUEL ECONOMY WITH THAT OF JAPAN ............................................. 100
12.8.
12.9.
SAVING POTENTIAL AND INVESTMENT ......................................................................................... 105
12.10. REFERENCE ...................................................................................................................................... 105
13. AGRICULTURAL AND MUNICIPAL WATER PUMPING ................................................................107

13.1.
INTRODUCTION ............................................................................................................................. 107
13.2.
INDIAN ECONOMY AND PUMP INDUSTRY ................................................................................... 107
13.3.
PARAMETERS AFFECTING PERFORMANCE ...................................................................................... 107
13.4.
STAR RATED PUMPS ........................................................................................................................ 108
13.5.
BENEFITS OF ENERGY CONSERVATION IN AGRICULTURE PUMPS ................................................ 108
13.6.
IMPROVING ENERGY EFFICIENCY FOR SUBSIDIZED POWER USERS ............................................. 109
13.7.
BUSINESS MODEL FOR PROJECT .................................................................................................... 110
13.8.
RISKS IN AGDSM PROJECT .............................................................................................................. 110
13.9.
INVESTMENT REQUIREMENT FOR AGRICULTURE DSM ................................................................. 111
13.10. EFFICIENCY IMPROVEMENT IN MUNICIPALITY PUMPS.................................................................. 111

13.11. CONCLUSION.................................................................................................................................. 111
13.12. REFERENCES..................................................................................................................................... 112
14. CERAMIC INDUSTRY ...................................................................................................................113

14.1.
INTRODUCTION ............................................................................................................................. 113
14.2.
INDIAN ECONOMY AND CERAMIC INDUSTRY .............................................................................. 113
Table of Contents

14.3.
CURRENT STATICS OF INDIAN CERAMIC INDUSTRY ..................................................................... 113
14.4.
GLOBAL SCENARIO OF THE CERAMIC INDUSTRY ......................................................................... 114
14.5.
MANUFACTURING PROCESS OF CERAMICS................................................................................... 115
14.6.
14.7.
14.8.
ENERGY CONSERVATION AREAS AND CONSERVATION MEASURES.............................................. 116
14.9.
CONCLUSION.................................................................................................................................. 117
14.10. REFERENCE ...................................................................................................................................... 117
15. SMALL AND MEDIUM ENTERPRISES ...........................................................................................119

15.1.
INTRODUCTION ............................................................................................................................. 119
15.2.
INDIAN ECONOMY AND SMES ....................................................................................................... 120
15.3.
ENERGY EFFICIENCY POTENTIAL IN SMES ...................................................................................... 120
15.4.
ROLE OF ESCOS AND GOVERNMENT IN SME ................................................................................ 121
15.5.
15.6.
CONCLUSION.................................................................................................................................. 122
15.7.
REFERENCE ...................................................................................................................................... 123
16. COAL MINING .............................................................................................................................125

16.1.
INTRODUCTION ............................................................................................................................. 125
16.2.
INDIAN COAL SECTOR .................................................................................................................... 126
16.3.
FUTURE COAL DEMAND ................................................................................................................. 128
16.4.
COAL MINING IN INDIA.................................................................................................................. 129
16.5.
ENERGY CONSUMPTION IN COAL MINING ................................................................................... 129
16.6.
16.7.
CONCLUSION.................................................................................................................................. 131
16.8.
REFERENCES..................................................................................................................................... 131
17. POWER TRANSMISSION AND DISTRIBUTION SECTOR ............................................................133

17.1.
INTRODUCTION ............................................................................................................................. 133
17.2.
AGGREGATE TECHNICAL AND COMMERCIAL (AT&C) LOSS .......................................................... 134
17.3.
DISTRIBUTION LOSSES AROUND THE WORLD ............................................................................. 134
17.4.
REASONS FOR HIGH LOSSES ......................................................................................................... 135
17.5.
CASCADE EFFICIENCY IN ELECTRICITY SECTOR ............................................................................. 135
17.6.
TECHNICAL LOSS REDUCTION IN DISTRIBUTION SECTOR ........................................................... 137
17.7.
MICRO GRID ................................................................................................................................... 142
17.8.
ENERGY EFFICIENCY INVESTMENT .................................................................................................. 142
17.9.
CONCLUSIONS ................................................................................................................................ 142
17.10. REFERENCES..................................................................................................................................... 143
18. SUGAR INDUSTRY .......................................................................................................................145
vi
18.1.
INTRODUCTION ............................................................................................................................. 145
18.2.
PRODUCTION PROCESS ................................................................................................................. 145
18.3.
WORLD SUGAR INDUSTRY ............................................................................................................. 147
18.4.
INDIAN SUGAR INDUSTRY.............................................................................................................. 148
18.5.
COGENERATION IN SUGAR INDUSTRY .......................................................................................... 148
18.6.
ENERGY CONSUMPTION IN SUGAR INDUSTRY ............................................................................. 150
Table of Contents

18.7.
18.8.
CONCLUSION.................................................................................................................................. 150
18.9.
REFERENCES..................................................................................................................................... 150
19. INDIAN RAILWAY .........................................................................................................................151

19.1.
INTRODUCTION ............................................................................................................................. 151
19.2.
INDIAN RAILWAYS INFRASTRUCTURE ............................................................................................ 151
19.3.
GLOBAL SCENARIO ......................................................................................................................... 152
19.4.
19.5.
ENERGY EFFICIENCY INITIATIVES BY IR ........................................................................................... 153
19.6.
ENERGY EFFICIENCY FUNDING....................................................................................................... 153
19.7.
INVESTMENT OPPORTUNITY .......................................................................................................... 154
19.8.
CONCLUSION.................................................................................................................................. 155
19.9.
REFERENCES..................................................................................................................................... 156
20. ENERGY EFFICIENCY INITIATIVES IN INDIA ...............................................................................157

20.1.
INTRODUCTION ............................................................................................................................. 157
20.2.
EE INITIATIVES BY CENTRAL GOVERNMENT ................................................................................... 157
20.3.
EE INITIATIVES BY STATES ................................................................................................................ 158
20.4.
CONCLUSION.................................................................................................................................. 168
20.5.
REFERENCES..................................................................................................................................... 168
21. ENERGY EFFICIENCY POLICIES AND REGULATIONS ACROSS THE GLOBE ...............................171
21.1.
INTRODUCTION ............................................................................................................................. 171
21.2.
ENERGY EFFICIENCY REGULATIONS IN INDIA ................................................................................ 172
21.3.
POLICIES AND REGULATIONS IN ENERGY EFFICIENCY IN OTHER COUNTRIES ............................ 173
21.4.
CONCLUSION.................................................................................................................................. 178
21.5.
REFERENCES..................................................................................................................................... 179
22. RESEARCH & DEVELOPMENT IN ENERGY EFFICIENCY ...............................................................181

22.1.
INTRODUCTION ............................................................................................................................. 181
22.2.
R&D REQUIREMENTS IN ENERGY SECTOR IN INDIA ...................................................................... 181
22.3.
INDIAS R&D IN BUILDING ENERGY CONSUMPTION .................................................................... 182
22.4.
DC GRID & MICRO GRID ................................................................................................................ 183
22.5.
OTHER AREAS OF R&D FOR ENERGY EFFICIENCY .......................................................................... 183
22.6.
CONCLUSION.................................................................................................................................. 183
22.7.
REFERENCES..................................................................................................................................... 184
23. INVESTMENT POTENTIAL FOR ENERGY EFFICIENCY .................................................................185

23.1.
INTRODUCTION ............................................................................................................................. 185
23.2.
OVERALL INVESTMENT REQUIREMENT FOR ENERGY EFFICIENCY IN INDIA ................................. 186
23.3.
THERMAL POWER STATIONS .......................................................................................................... 187
23.4.
STEEL AND IRON SECTOR ............................................................................................................... 188
23.5.
CEMENT PLANTS ............................................................................................................................. 188
23.6.
CHEMICAL INDUSTRY ..................................................................................................................... 189
23.7.
ALUMINIUM .................................................................................................................................... 189
23.8.
PULP & PAPER .................................................................................................................................. 190
23.9.
TEXTILE INDUSTRY .......................................................................................................................... 190
Table of Contents
vii

23.10. COMMERCIAL AND RESIDENTIAL BUILDINGS ............................................................................... 190
23.11. MUNICIPAL STREET LIGHTING ........................................................................................................ 191
23.12. TRANSPORTATION SECTOR ............................................................................................................ 191
23.13. AGRICULTURAL AND MUNICIPALITY WATER PUMPING ................................................................ 192
23.14. CERAMIC INDUSTRIES ..................................................................................................................... 192
23.15. SMALL AND MEDIUM ENTERPRISES ............................................................................................... 193
23.16. COAL SECTOR ................................................................................................................................. 193
23.17. TRANSMISSION AND DISTRIBUTION SECTOR ............................................................................... 193
23.18. SUGAR INDUSTRY ........................................................................................................................... 194
23.19. INDIAN RAILWAYS ........................................................................................................................... 194
23.20. PRIORITY AREAS FOR ENERGY EFFICIENCY IN INDIA ..................................................................... 195
23.21. ROLES & RESPONSIBILITIES OF STATUTORY BODIES/AUTHORITIES TOWARDS .......................... 195
IMPLEMENTATION OF MEASURES
23.22 CONCLUSION ................................................................................................................................. 196
24. FINANCING FOR ENERGY EFFICIENCY .......................................................................................197

24.1.
INTRODUCTION ............................................................................................................................. 197
24.2.
INCENTIVE FOR ENERGY-EFFICIENT EQUIPMENT........................................................................... 198
24.3.
INCENTIVES AND REBATES FROM IREDA AND OTHER AGENCIES [2] ............................................ 198
24.4.
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) ......................................................... 199
24.5.
TYPES OF FINANCING ..................................................................................................................... 199
24.6.
PRACTICES IN OTHER COUNTRIES ................................................................................................. 200
24.7.
BARRIERS TO EE FINANCING........................................................................................................... 201
24.8.
CONCLUSION.................................................................................................................................. 201
24.9.
REFERENCE ...................................................................................................................................... 202
ANNEXURE-I
THERMAL POWER GENERATION UNITS IN INDIA OLDER THAN 25 YEARS ...203
ANNEXURE-II
RECOMMENDED LIGHT LEVELS........................................................................205

LED LIGHTS VS INCANDESCENT LIGHTS VS CFLS............................................206
ANNEXURE-III
COST OF APPLIANCES ....................................................................................... 207
ANNEXURE-IV
ENERGY SAVING TIPS FOR HOUSE HOLD .......................................................208
ANNEXURE-V
BEE STAR RATING .............................................................................................209
ANNEXURE-VI
STATE-WISE DETAILS OF AGRICULTURAL PUMPS AND THE SAVING .............215

POTENTIAL
ANNEXURE-VII :
STATE-WISE DETAILS OF MUNICIPALITY PUMPS AND THE SAVING ..............216

POTENTIAL
ANNEXURE-VIII :
RAILWAY MAP OF INDIA .................................................................................. 217
ANNEXURE-IX
SUMMARY OF ENERGY EFFICIENCY INITIATIVES BY STATES ...........................218
ANNEXURE-X
SUMMARY OF ENERGY EFFICIENCY INITIATIVES BY VARIOUS ......................223

COUNTRIES
ANNEXURE-XI
SECTOR WISE ENERGY EFFICIENCY INVESTMENT POTENTIAL .......................232
ABBREVIATION ................................................................................................................................... 233

CONVERSION TABLE...........................................................................................................................239
ENERGY UNITS....................................................................................................................................240
viii
Table of Contents
List of Figures
FIGURE 1-1
ENERGY SOURCES ........................................................................................................................4
FIGURE 2-1
IMPORT DEPENDENCE .................................................................................................................9
FIGURE 2-2
DISTRIBUTION OF SECTOR WISE CONSUMPTION OF ELECTRICITY DURING 2011-2012 ........10
FIGURE 2-3
SECTOR WISE CONSUMPTION OF NATURAL GAS ......................................................................12
FIGURE 2-4
SECTOR WISE CONSUMPTION OF PETROLEUM PRODUCTS .....................................................12
FIGURE 2-5
PROJECTED PEAK ELECTRICITY DEMAND ....................................................................................13
FIGURE 2-6
SAVING TARGETS OF VARIOUS INDUSTRIES UNDER PAT-I .........................................................15
FIGURE 3-1
INSTALLED CAPACITY IN INDIA AS ON 31-10-2014 ....................................................................17
FIGURE 3-2
SCHEMATIC OF A COAL BASED THERMAL POWER PLANT .........................................................18
FIGURE 3-3
COMPARISON OF GROWTH IN GDP AND POWER GENERATING CAPACITY ............................19
FIGURE 3-4
INDIAS POWER GENERATION CAPACITY OVER 200821 ...........................................................19
FIGURE 3-5
A TYPICAL COGENERATION SYSTEM ...........................................................................................20
FIGURE 3-6
SCHEMATIC OF AN IGCC .............................................................................................................20
FIGURE 3-7
TYPICAL SUPER CRITICAL CYCLE WITH ONLY ONE REHEAT .......................................................21
FIGURE 3-8
VARIATION OF POWER PLANT EFFICIENCY - VARYING INLET STEAM CONDITIONS .................23
FIGURE 3-9
CO2 REDUCTION ACHIEVED OVERALL COAL TPP IMPROVEMENT .........................................24
FIGURE 4-1
STEEL PRODUCTION PROCESS ....................................................................................................28
FIGURE 4-2
ENERGY SAVING POTENTIAL IN 2006, BASED ON BEST AVAILABLE TECHNOLOGY ..................30
FIGURE 5-1
CEMENT PRODUCTION, DEMAND AND EXPORT .......................................................................35
FIGURE 5-2
DEMAND BREAK UP OF CEMENT BY SEGMENTS ........................................................................36
FIGURE 5-3
DEMANDSUPPLY ........................................................................................................................36
FIGURE 5-4
NUMBER OF WHR SYSTEMS INSTALLED IN CEMENT SECTOR ....................................................37
FIGURE 5-5
TECHNICAL POTENTIAL AND INVESTMENT IN WHR DEPLOYMENT IN CEMENT INDUSTRY ....38
FIGURE 6-1
12TH FIVE YEAR PLAN GROWTH TARGETS ...................................................................................44
FIGURE 6-2
AGGREGATE PETROCHEMICAL DEMAND....................................................................................48
FIGURE 6-3
COUNTRY WISE ENERGY SAVINGS POTENTIAL CHEMICALS BPT BASED ................................49
FIGURE 7-1
STEPS IN ALUMINIUM PRODUCTION INDIAN ALUMINIUM INDUSTRY ....................................51
FIGURE 7-2
ALUMINIUM CONSUMPTION IN INDIA ......................................................................................52
FIGURE 7-3
ALUMINIUM PRODUCTION IN INDIA .........................................................................................52
FIGURE 7-4
WORLD ALUMINIUM CONSUMPTION DISTRIBUTION BY 2030 (TOTAL: 73.7 MT) ...................53
FIGURE 8-1
ENERGY CONSUMPTION SHARE OF PAPER AND PULP INDUSTRY GLOBALLY ..........................57
FIGURE 8-2
PAPER MANUFACTURING PROCESS ............................................................................................58
FIGURE 8-3
PAPER DEMAND IN INDIA ............................................................................................................59
FIGURE 8-4
RAW MATERIAL SHARE IN PAPER MANUFACTURING IN INDIA ..................................................62
FIGURE 8-5
ENERGY INTENSITY OF PULP AND PAPER INDUSTRY .................................................................63
FIGURE 9-1
TEXTILE MANUFACTURING PROCESS ..........................................................................................67
FIGURE 9-2
ELECTRICITY CONSUMPTION IN TEXTILE INDUSTRY..................................................................68
FIGURE 9-3
THERMAL ENERGY CONSUMPTION IN TEXTILE INDUSTRY ........................................................69
FIGURE 10-1 :
GROWTH OF ELECTRICITY CONSUMPTION IN COMMERCIAL BUILDING IN INDIA.................75
FIGURE 10-2 :
URBAN AND RURAL POPULATION ............................................................................................76
FIGURE 10-3 :
RURAL AND URBAN POPULATION % IN INDIA .........................................................................76
FIGURE 10-4 :
ENERGY CONSUMPTION IN RESIDENTIAL SECTOR ....................................................................76
FIGURE 10-5 :
DISTRIBUTION OF ENERGY CONSUMPTION IN COMMERCIAL SECTOR ...................................79
FIGURE 10-6 :
STATE-WISE SAVINGS POTENTIAL FOR COMMERCIAL BUILDINGS ............................................82
FIGURE 10-7 :
FUTURE TREND OF BUILDING ....................................................................................................83
FIGURE 11-1 :
LED SCHEMATIC DIAGRAM..........................................................................................................89
Table of Contents
ix

FIGURE 11-2 :
WHITE LIGHT EFFICACY ...............................................................................................................89
FIGURE 11-3 :
PROJECTED GROWTH IN CONSUMPTION OF ENERGY BY STREET LIGHTS ..............................92

(MILLION KWH) PER ANNUM
FIGURE 12-1 :
GROWTH IN NUMBER OF VEHICLES AFTER INDEPENDENCE ....................................................96
FIGURE 12-2 :
SECTOR WISE CONSUMPTION OF PETROLEUM PRODUCTS DURING 2011-12........................97
FIGURE 12-3 :
ENERGY USE PROJECTION BY MODE AND VEHICLE TYPES, PJ ...................................................98
FIGURE 12-4 :
FUEL ECONOMY VS. VEHICLE WEIGHT FOR INDIAN GASOLINE VEHICLES COMPARE ............102
WITH JAPAN
FIGURE 12-5 :
FUEL ECONOMY VS. VEHICLE WEIGHT FOR INDIAN DIESEL VEHICLES COMPARE ..................103
WITH JAPAN
FIGURE 12-6 :
QUALITY OF ROADS IN DIFFERENT COUNTRIES AS PER 2011 ...................................................104
FIGURE 14-1 :
WORLD CERAMIC TRADE ............................................................................................................114
FIGURE 14-2 :
INDIAN CERAMIC TRADE .............................................................................................................115
FIGURE 15-1 :
LEADING INDUSTRIES IN MSME SECTOR ....................................................................................119
FIGURE 15-2 :
ENERGY SAVING POTENTIAL IN VARIOUS SECTORS, 2008 .........................................................121
FIGURE 16-1 :
INCREMENTAL WORLD PRIMARY ENERGY DEMAND BY FUEL, 2000-2010 ................................125
FIGURE 16-2 :
GLOBAL COAL PRODUCTION .....................................................................................................126
FIGURE 16-3 :
SECTOR WISE COAL CONSUMPTION IN INDIA, 2010-2011 .......................................................126
FIGURE 16-4 :
DEMAND-SUPPLY SCENARIO OF COAL IN INDIA .......................................................................127
FIGURE 16-5 :
COAL IMPORT IN INDIA ..............................................................................................................128
FIGURE 16-6 :
ENERGY SHARE IN COAL MINING SECTOR .................................................................................129
FIGURE 17-1 :
STATE WISE T&D LOSSES IN INDIA (2010-11) ..............................................................................133
FIGURE 17-2 :
AGGREGATE TECHNICAL & COMMERCIAL LOSSES OF SPUS ......................................................134
FIGURE 17-3 :
COMPARISON OF DISTRIBUTION LOSS FOR INDIA AND BEST PRACTICE COUNTRIES ............134
FIGURE 17-4 :
OVERALL ENERGY EFFICIENCY IN ELECTRICITY ...........................................................................137
FIGURE 17-5 :
AMI LAYOUT .................................................................................................................................139
FIGURE 17-6 :
PEAK LOAD MANAGEMENT .........................................................................................................140
FIGURE 17-7 :
SCHEMATIC OF OUTAGE MANAGEMENT SYSTEM ......................................................................141
FIGURE 18-1 :
SUGAR PRODUCTION PROCESS .................................................................................................145
FIGURE 18-2 :
SUGAR PRODUCTION AND DEMAND 2009-15 ..........................................................................147
FIGURE 18-3 :
CENTRIFUGAL SUGAR PRODUCTION (RAW VALUE) IN INDIA DURING 2009-15 ......................148
FIGURE 18-4 :
SUGAR PRODUCTION PROCESS FLOW CHART ..........................................................................149
FIGURE 18-5 :
ELECTRICITY GENERATION FROM BAGASSE................................................................................149
FIGURE 19-1 :
GROWTH IN RAIL TRACK-KM DURING 2000-09 .........................................................................152
FIGURE 21-1 :
ENERGY INTENSITY VARIATION DURING 2000-2008 ..................................................................173
List of Tables
TABLE 1-1
ENERGY INTENSITY IN VARIOUS COUNTRIES-2013 ....................................................................5
TABLE 2-1
PAT CYCLE-1 ENERGY SAVING TARGETS ......................................................................................14
TABLE 3-1
ALL INDIA INSTALLED CAPACITY (MW) AS ON 31-10-2014 ........................................................17
TABLE 3-2
LIST OF SOME SUPER CRITICAL THERMAL POWER PLANTS IN INDIA .......................................22
TABLE 3-3
COMPARISON BETWEEN USC AND A-USC..................................................................................23
TABLE 3-4
ENERGY SAVING AND INVESTMENT CALCULATION ...................................................................24
TABLE 3-5
INVESTMENT FOR CONSTRUCTING SUPERCRITICAL POWER PLANT REPLACING ...................24

OLD SUBCRITICAL ONES
TABLE 3-6
ENERGY EFFICIENCY INVESTMENT IN A TYPICAL 500 MW THERMAL POWER PLANT ...............25
TABLE 4-1
PER CAPITA STEEL CONSUMPTION FOR VARIOUS COUNTRIES.................................................27
List of Figures

TABLE 4-2
MAJOR INDIAN STEEL PRODUCERS.............................................................................................28
TABLE 4-3
GROWTH VS STEEL SECTOR GROWTH IN INDIA........................................................................29
TABLE 4-4
TOP STEEL PRODUCERS ...............................................................................................................29
TABLE 4-5
SAVING POTENTIAL IN STEEL SECTOR .........................................................................................31
TABLE 4-6
SAVING, INVESTMENT AND PAYBACK FOR A 1 MILLION MTPA STEEL PLANT ...........................32
TABLE 5-1
CEMENT INDUSTRY-AREA WISE ENERGY CONSUMPTION .........................................................37
TABLE 5-2
ENERGY SAVING POTENTIAL........................................................................................................39
TABLE 5-3
ENERGY CONSERVATION MEASURES IN CEMENT PLANTS .........................................................40
TABLE 5-4
ENERGY EFFICIENCY CASE STUDIES .............................................................................................41
TABLE 6-1
ENERGY SAVING IN CHLOR ALKALI INDUSTRY ...........................................................................45
TABLE 6-2
ENERGY SAVING POTENTIAL FOR UNIT 1 ...................................................................................46
TABLE 6-3
ENERGY SAVING POTENTIAL FOR UNIT 2 ...................................................................................46
TABLE 6-4
ALL INDIA DEMAND FORECAST FOR THE FERTILIZER PRODUCTS DURING ............................47
THE 12TH PLAN
TABLE 6-5
ENERGY SAVING POTENTIAL IN FERTILIZER INDUSTRY ..............................................................47
TABLE 6-6
ENERGY INVESTMENT POTENTIAL IN CHEMICAL & PETROCHEMICAL SECTOR ........................49
TABLE 7-1
BENCHMARKING OF FINAL ENERGY CONSUMPTION................................................................53
TABLE 7-2
SAVING POTENTIAL IN ALUMINIUM SECTOR .............................................................................54
TABLE 7-3
ENERGY EFFICIENCY MEASURES ..................................................................................................55
TABLE 8-1
PAPER PRODUCTION BY MAJOR INDIAN COMPANIES (2012-13)...............................................59
TABLE 8-2
WASTE PAPER COLLECTION MECHANISM IN INDIA ...................................................................60
TABLE 8-3
RECOVERY POTENTIAL FOR WASTE PAPER .................................................................................61
TABLE 8-4
PERFORMANCE COMPARISON OF INTEGRATED WOOD BASED PAPER MILLS .........................62

IN INDIA AND ABROAD
TABLE 8-5
TYPICAL ENERGY CONSUMPTION DETAILS OF INDIAN PAPER MILLS........................................62
TABLE 8-6
ENERGY SAVING POTENTIAL AND INVESTMENT FOR WOOD BASED PAPER ...........................63
MANUFACTURING PROCESS
TABLE 8-7
SAVING POTENTIAL FOR A 200 TPD PAPER MANUFACTURING MILL WITH ENERGY ...............65
EFFICIENT MEASURES
TABLE 9-1
STATE WISE ENERGY SAVING POTENTIAL IN TEXTILE INDUSTRIES UNDER PAT CYCLE 1 ...........70
TABLE 9-2
ECONOMIC ANALYSIS OF ENERGY EFFICIENCY IMPROVEMENT OPTIONS................................72
TABLE 9-3
ENERGY EFFICIENCY INVESTMENT IN INDIAN SPINNING AND COMPOSITE MILLS. .................72
TABLE 9-4
CONVENTIONAL ENERGY REPLACEMENT POTENTIAL THROUGH SOLAR APPLICATIONS ......73

IN TEXTILE INDUSTRY
TABLE 10-1
ENERGY CONSUMPTION BY HOME APPLIANCES .......................................................................77
TABLE 10-2
GROWTH RATE AND HOUSEHOLD SHARE, SALES IN MILLIONS IN 2008 AND 2013................78
TABLE 10-3
ENERGY SAVINGS FROM HOUSE HOLD APPLIANCES.................................................................78
TABLE 10-4
PROJECTED AREA OF COMMERCIAL BUILDING IN 2020 AND 2030 ..........................................79
TABLE 10-5
EXAMPLES OF ENERGY SAVINGS IN LEED-RATED GREEN BUILDINGS IN INDIA ........................80
TABLE 10-6
STATE WISE SAVING POTENTIAL FOR COMMERCIAL BUILDINGS ..............................................81
TABLE 10-7
ENERGY EFFICIENCY INVESTMENT IN COMMERCIAL & RESIDENTIAL SECTOR ..........................83
TABLE 11-1
CLASSIFICATION OF STREET LIGHTS ...........................................................................................88
TABLE 11-2
COMPARISON BETWEEN LED AND CONVENTIONAL CFL ..........................................................90
TABLE 11-3
STATE-WISE INVESTMENT IN ENERGY SAVING STREET LIGHTING ..............................................91
TABLE 12-1
LENGTH OF DIFFERENT ROAD CATEGORIES IN INDIA ...............................................................95
TABLE 12-2
FREIGHT SHARE IN TRANSPORTATION SECTOR .........................................................................97
TABLE 12-3
PASSENGER SHARE IN TRANSPORTATION SECTOR .....................................................................97
TABLE 12-4
ETC TECHNOLOGIES AROUND WORLD .....................................................................................99
TABLE 12-5
FUEL ECONOMY TARGETS FOR VEHICLES ..................................................................................101
List of Figures
xi
xii
TABLE 12-6
FUEL ECONOMY TARGETS FOR CITY BUSES ...............................................................................101
TABLE 12-7
TARGET STANDARD VALUES FOR BUSES, EXCEPT CITY BUSES ...................................................101
TABLE 12-8
FUEL ECONOMY TARGETS FOR TRACTORS ................................................................................101
TABLE 12-9
ESTIMATED SAVING POTENTIAL IN ROAD TRANSPORTATION-INDIA ........................................105
TABLE 13-1
RESULT OF REPLACING 7.4 HP PUMP SET WITH HIGH EFFICIENCY 3.0 HP PUMP SET .............108
TABLE 13-2
BENEFITS OF ENERGY CONSERVATION IN AGRICULTURE PUMPS .............................................109
TABLE 13-3
INVESTMENT REQUIRED IN WHOLE OF INDIA ...........................................................................111
TABLE 13-4
INVESTMENT REQUIRED ON PAN INDIA BASIS ...........................................................................111
TABLE 14-1
CERAMIC TILE INDUSTRY STATISTICS ..........................................................................................113
TABLE 14-2
ENERGY SAVING POTENTIAL IN CERAMIC INDUSTRY ................................................................116
TABLE 15-1
SMALL AND MEDIUM ENTERPRISE DEFINITION .........................................................................119
TABLE 15-2
SECTORIAL ENERGY CONSUMPTION ..........................................................................................120
TABLE 15-3
ENERGY SAVING POTENTIAL IN SME ...........................................................................................122
TABLE 16-1
COMPARISON OF INDIAN COAL WITH THAT IN USA AND CHINA ...........................................127
TABLE 16-2
ENERGY SAVING POTENTIAL FOR INDIAN COAL MINING SECTOR ...........................................130
TABLE 17-1
TOTAL LOSSES AT 50% AND 100% LOADING ..............................................................................138
TABLE: 17-2 :
MONETARY SAVING AND INVESTMENT POTENTIAL IN T&D SECTOR ........................................142
TABLE 18-1
TOP TEN CENTRIFUGAL SUGAR PRODUCING (RAW VALUE) COUNTRIES IN THE ....................147
WORLD 2013-14
TABLE 18-2
ENERGY SAVING POTENTIAL IN SUGAR INDUSTRY ....................................................................150
TABLE 19-1
ROLLING STOCK (IN UNITS) ........................................................................................................151
TABLE 19-2
ENERGY CONSUMPTION BY INDIAN RAILWAYS SINCE LAST THREE YEARS ...............................152
TABLE 19-3
ENERGY SAVING POTENTIAL IN RAILWAY ...................................................................................155
TABLE 21-1
POLICIES TO ENHANCE ENERGY EFFICIENCY MARKET ...............................................................171
TABLE 23-1
SUMMARY OF EE SAVING AND INVESTMENT POTENTIAL ..........................................................186
TABLE 23-2
SUMMARY OF COAL BASED THERMAL POWER SECTOR ............................................................187
TABLE 23-3
SUMMARY OF SECTOR.................................................................................................................188
TABLE 23-4
SUMMARY OF CEMENT SECTOR ..................................................................................................188
TABLE 23-5
SUMMARY OF CHEMICAL SECTOR ..............................................................................................189
TABLE 23-6
SUMMARY OF ALUMINIUM SECTOR ...........................................................................................189
TABLE 23-7
SUMMARY OF PAPER & PULP SECTOR ........................................................................................190
TABLE 23-8
SUMMARY OF TEXTILE SECTOR ...................................................................................................190
TABLE 23-9
SUMMARY OF RESIDENTIAL & COMMERCIAL SECTOR ...............................................................191
TABLE 23-10 :
SUMMARY OF MUNICIPAL STREET LIGHTING.............................................................................191
TABLE 23-11 :
SUMMARY OF TRANSPORTATION SECTOR .................................................................................191
TABLE 23-12 :
SUMMARY OF AGRICULTURAL PUMPS .......................................................................................192
TABLE 23-13 :
SUMMARY OF MUNICIPAL PUMPS ..............................................................................................192
TABLE 23-14 :
SUMMARY OF CERAMIC SECTOR ................................................................................................192
TABLE 23-15 :
SUMMARY OF SME SECTOR .........................................................................................................193
TABLE 23-16 :
SUMMARY OF COAL SECTOR ......................................................................................................193
TABLE 23-17 :
SUMMARY OF T&D SECTOR ........................................................................................................194
TABLE 23-18 :
SUMMARY OF SUGAR INDUSTRY ................................................................................................194
TABLE 23-19 :
ENERGY SAVING POTENTIAL IN RAILWAY ...................................................................................194
TABLE 23-20 :
ENERGY EFFICIENCY MEASURES BY VARIOUS AUTHORITIES AND STATUTORY BODIES ...........196
List of Tables
Executive Summary
Introduction
Energy is one of the major inputs for the economic development of a country. In the recent years,
India has seen remarkable economic growth which paves the way for ambitious achievements
in all forms. A sustainable economic growth is always backed up by the availability of energy
resources. Present per capita electrical energy consumption in India is about 917 units, which
is much below that of the developed countries as well as world average. It is just 4% of USA
and 20% of the world average. With the ongoing development, rapid industrialization and
increase in quality of life, per capita energy consumption is bound to increase significantly.
India doesnt have enough resources (especially crude oil) to cater its future energy requirement.
Imports of oil and coal have been increasing at the rates of 7% and 16% per annum respectively
in the last decade. It is also notable that at 9% GDP growth rate, the electrical energy demand
will reach about 500 GW by 2030 with an installed capacity requirement of 800-900 GW. It
is obvious that at present, renewable energy and other will gain importance while the share of
coal and hydro may fall in the longer prospective.
For energy security of any nation, it is very important to reduce the dependency on imported
energy sources. However, out of all these options, the simplest and the most easily attainable
are to reduce the demand through persistent energy conservation/efficiency efforts. But until
and unless no energy efficiency or energy conservation mechanisms are upheld or new energy
sources are found out, India would remain a net energy importer. The energy efficiency
industry is poised for a period of double-digit growth, but prospects vary significantly across
the country and among market segments. For, market participants, this places a premium on
the right strategy, positioning, and execution.
Energy Efficiency in Present Scenario

Indian Energy sector is undergoing through the phase of supply shortage both in thermal and in
electrical energy. The more frequent and long duration power cuts are best examples for it. This
situation necessitates various measures to reduce demand-supply gap and energy efficiency
is the important amongst them. It is expected that to meet the present and upcoming energy
requirement, Demand Side Management (DSM) such as efficient usage of energy through
energy efficiency equipment, shifting of energy use from peak hours to other than peak hours,
etc. would play a vital role. Focus on energy efficiency is required as it is easiest way to
implement in shorter time. After a market study done on energy efficiency opportunities in India
by POWERGRID, it is observed that immense investment opportunities have been emerged in
the field of energy efficiency in various sectors including Iron and Steel, Textile, Cement, Pulp
& Paper, Thermal Power Plants, Aluminium, Chemical, Street Light, Transportation, Railways,
Transmission & Distribution, Residential & Commercial Buildings, Agricultural and Municipal
water pumps, Ceramic, Coal and Small & Medium Enterprises (SMEs) etc.
Executive Summary
xiii

As mentioned earlier, India principally depends upon coal for its energy requirement and it
comes as the prime source of energy for electricity generation (approx. 60%). At the same
time the import requirement of coal is increasing to meet the demand. The coal imports are
envisaged to reach 22.4% of its requirement by 2017. Other than coal, oil and natural gas
also forms the prime energy sources, which principally remain as the fuel for transportation.
Figure 1 gives the distribution of energy consumption in India and Figure 2 gives the distribution
of sector wise consumption of electricity as on 2012.
Figure 1: Distribution of Total Energy

Consumption in India during 2012
Figure 2: Distribution of Sector wise

consumption of Electricity during 2012
Energy Saving Opportunities in Industries

Bureau of Energy Efficiency (BEE) has identified many industries in India for which mandatory
energy saving targets are put forward that comes under the Perform
Achieve and Trade (PAT) Scheme. The total energy saving target 1 toe = 11630 kWh
envisaged from all the PAT industries under PAT cycle 1 (2015), is
66.86 lakh toe as shown in Table 1.
Table 1: Sector wise Energy Saving Target - PAT Cycle 1
Energy Saving (lakh toe1)
Sector
Thermal Power Plants
Iron & Steel
Cement
Fertilizer
Aluminium
Pulp & Paper
Textile
Chlor-Alkali
Total
1
xiv
32.11
14.86
8.16
4.78
4.56
1.19
0.66
0.54
66.86
toe = tonnes of oil equivalent
Executive Summary

Thermal Power Plants form the prominent share in the PAT Cycle 1 energy saving target,
almost 50%. As on 31st October 2014, the installed capacity of coal based thermal power
plants in the country is about 60%. The thermal power plant efficiencies were found to vary
from 16.7% to 48.5% (the lowest being a coal based thermal power plant). It is also vital in
selecting modern energy efficient technologies in power production like Super-Critical (SC),
Ultra-SC (USC), Advanced-USC (A-USC), Cogeneration, Integrated Gasification Combined
Cycle (IGCC) etc. A total of more than 5.2 crore tonnes of coal can be saved just by improving
the power plant efficiency from 30 to 35% (30% being the average coal based power plant
efficiency in India) and the corresponding saving in monitory terms would be about ` 8,440
crore crore per annum. At the same time, generating units of power plants older than 30 years
(very low efficiency) may be replaced gradually with energy efficient ones.
Steel & Iron Sector
India, being one of the largest steel producing countries in the world, the steel production
has crossed 81 million tonnes in 2013. Steel industry consumes comparatively more thermal
energy than the electrical energy. Taking into consideration the international specific energy
consumption (SEC) of steel production which is between 4.5 and 5.5 Gcal/tonne, Indian
values stand as high as 27-45% higher, ranging between 6.5 and 7 Gcal/tonne (as per BEE
report). By following international energy consumption norms, at least 2.7 crore tce2 can be
saved annually, which is inclusive of both electrical and thermal savings. A total saving worth
` 16,200 crore/annum is identified in the sector.
Cement Industry
Cement is the most vital component for infrastructure development of the country. Being a
developing nation, Indian cement industries have a bigger room for development. Along with
the growth, the Specific Energy Consumption (SEC) in the sector also provides a great scope in
improvement. The average SEC for Indian cement industries is 725 kcal/kg and 82 kWh/tonne
of cement against the countrys best of 667 kcal/kg and 68 kWh/tonne i.e. SEC is more than
8.5% in terms of heat energy and more than 20.5% in terms of electrical energy. If the cement
industries in India can achieve the international levels, a total of 512 crore units of electricity
worth ` 2,560 crore and 4.72 million tonne coal equivalent (mtce) worth ` 2,830 crore can be
saved annually. A total saving worth ` 5,400 crore/annum has been identified in this sector.
Chemical Industry
Chemical industry contributes to 10% of the global energy demand. Indian chemical sector
is expected to grow at 15% and is estimated to reach ` 17.4 lakh crore by 2017. The main
two chemical industries identified to be the major energy consumers are chlor-alkali and
fertilizer. BEE has identified 22 Designated Consumers (DCs) in the Chlor alkali industry and
mandated to reduce their energy consumption by 0.54 lakh toe by the end of PAT Cycle-1
cumulatively. The agency has also mandated the DCs in the fertilizer industry to reduce 4.78
lakh toe energy consumption by 2015. There can be considerable energy saving potential of
around 0.15 EJ3 in the chemical and petrochemical sector together by adopting cogeneration,
process intensification, recycling etc. A total saving worth ` 20,800 crore/annum is identified
in the sector.
2
3
TCE = tonnes of coal energy equivalent

EJ=exa joule = 1018 Joule
Executive Summary
xv

Aluminium Industry
In India, it is expected to have an annual aluminium production of 40 lakh tonnes during
2014-15. The energy consumption in the sector is so large such that the estimated total energy
saving potential for all designated consumers (DC) under PAT in the sector is 23%. BEE has
mandated all the 10 DCs in the sector to reduce energy consumption by 4.56 lakh toe during
the first PAT cycle. It is also noteworthy that the electricity cost is about 40% of the total
variable production cost in this industry. A total saving worth ` 2,100 crore/annum is identified
in the sector.
Pulp & Paper Industries
With a turnover of around ` 40,000 crore per annum, the paper industry is considered to
be one of the 35 high priority industries for the Govt. of India. The paper production in the
country is likely to grow at 8.4% per annum, while the consumption of paper grows at 9%.
Hence to bridge the gap, new efficient installations are necessary. Along with increase in
production, the energy consumption in the sector also needs to be reduced. The total energy
saving mandated to the 31 DCs in this sector identified by BEE is 1.19 lakh toe during PAT
cycle 1. Establishment of more and more paper recycling mills also makes the system energy
efficient since such paper production uses 30-40% less energy compared to conventional
ones. It is estimated that the energy saving from wood based paper mills alone to be 6.48 lakh
toe per annum. A total saving worth ` 3,750 crore/annum is identified in the sector.
Textile Industry
Countrys textile sector is one of the oldest in India which employs almost 3.5 crore people.
The sector adds to about 4% of the countrys GDP and 14% of industrial production. The
energy cost in the industry varies from 5-17% of the manufacturing cost relating to the process
involved. Major Energy efficiency improvement areas are lighting, electric motor, electric
heating and boilers. Due to the large requirement for hot water, solar thermal systems have a
good opportunity in this sector. Adopting solar heating methods will contribute a total saving
of 383 ktoe4 per annum. Such application of solar energy in textile industry has the potential
of saving ` 769.2 crore/annum. A total saving worth ` 13,940 crore/annum is identified in the
sector.
Other Potential Areas

Other than the PAT industries, there are other sectors identified to have considerable energy
efficiency/conservation potential. Transmission & Distribution, Agricultural and Municipal water
pumps, Railways, Ceramic, Coal, Road Transportation, Residential & Commercial Buildings,
Sugar, Street Light and SMEs also have high potential for energy saving. Potential energy saving
of above industries/establishments summarised in following sections.
Commercial and Residential Sector
Residential and commercial buildings form one of the major consumers of electrical energy in
the country. The sector consumes approximately 29% of the total electricity produced in the
country. By incorporating the energy efficiency measures in new commercial buildings, there
can be a potential saving up to 50%. The major energy consuming equipment in the sector
are the Heating, Ventilation & Air Conditioning (HVAC) systems, Fans and Lights. Significant
4
xvi
ktoe= kilo tonne of oil equivalent
Executive Summary

amount of energy can be saved in buildings by installing solar water heating system. The
energy saving opportunity in commercial buildings can be tackled more easily as compared to
the residential buildings. Energy Conservation Building Code (ECBC) compliant Commercial
buildings are found to be 20-30% more energy efficient than conventional buildings.
As on 2011 census, India has around 33 crore houses with 14 crore houses having proper roofs
which can accommodate an average 1-3 kWp of solar PV system. Besides, there are many
commercial buildings, public buildings, school, hospitals, shopping complexes, offices etc. that
can accommodate larger solar PV capacities. Taking into account of all these, approximately
25 GW of solar capacity can be installed by putting solar in 20% of roofs leading to substantial
savings in energy from conventional sources. A total annual energy saving potential is estimated
to be 29.47 TWh in this sector.
Municipal Street Lighting
Street lights form an essential factor in the road safety measures since long. At the same time,
considerable amount of energy is wasted each year due to inefficient lighting. By adapting
energy efficient street lights, almost 25-60% of energy savings is envisaged in the sector. It
is also estimated that up to 30% energy saving in street lights can be achieved by adopting
smart street light controls alone. Among all the street lights available presently, LEDs are found
to have very large lumens to watt ratio and an impressive life time of more than 50,000
hours. Considering 50% saving potential in the street lights in the country, 300 crore units of
electricity can be saved per annum. A total saving worth ` 6,000 crore per annum is identified
in the sector.
Transportation Sector
From 1951 to 2013, the number of vehicles in the country has grown at a compound annual
growth rate (CAGR) of about 11%. The consumption of the petroleum products in the road
transportation sector is 344.8 lakh tonnes in 2009-10. A comparative study done on the
vehicles of Japan with that of India showed a difference in fuel efficiency above 10% for petrol
vehicles and more than 20% for diesel vehicles. Considering above factors, a total saving worth
` 53,600 crore per annum is identified in the sector.
Agricultural Pumps
Agricultural sector consumes electrical energy for the operation of water pumps. The total
number of agricultural pumps in India is more than 2 crore. Retrofitting them with energy
efficient pumps could yield an annual saving of 33 TWh5 amounting to about ` 16,500 crore
per annum.
Ceramic Industries
With a fast growing phase at an average growth rate of 8%, ceramic industry is one of the
countrys oldest industrial sectors. The sectors energy cost is about 20-25% of the production
cost, with main fuel being Liquid Petroleum Gas (LPG) and Natural Gas. The industry is highly
energy intensive. Various energy conservation studies have showed a total energy saving
potential of about 15% in this sector. It is estimated that by adopting energy efficient measures
about ` 714 crore can be saved annually.
TWh=tera watt hour = 1 billion unit
Executive Summary
xvii

Small and Medium Enterprises (SME)
Being one of the prominent GDP contributors (~17%), Indian SMEs constitute to 48% of the
total energy consumption in industrial sector and is estimated that 25% of this can be saved
with marginal investment. With an annual electricity consumption of about 265 billion units
in the industrial sector alone, a total saving worth ` 15,900 crore per annum is identified in
the sector.
Coal Mining
Coal is the worlds most abundant fossil fuel and the largest energy source for electricity
production. Indian coal is of relatively low carbon high ash content as compared to coal from
USA and China. The country has been facing coal shortage (in production) for years and the
gap is filled up with imports at a higher cost. The import value that stood at 113 MT6 during
2012-13 is estimated to rise to 185.5 MT by 2016-17. The main reasons of the increasing
import are being low growth rate in coal exploration and inefficient technologies in the energy
intensive industries. The inefficient equipment used in the coal mines and old process leads to
energy losses in mines. The total energy saving potential in Indian mining sector is estimated to
be in the range of 5-8%. Taking into the fact that the coal production cost in the country during
2013 as ` 112/tonne, a total saving worth ` 300 crore per annum is identified in the sector.
Power Transmission & Distribution
Electricity network associated with the transfer of power from source to end-consumers
constitute of transmission and distribution network. In India, losses in the transmission network
are of the order of 3-4%, which is at par with international standards. However, average
losses in the distribution network calculated in terms of Aggregate Technical and Commercial
(AT&C) loss is close to 26% which includes losses due to theft and billing related issues. In the
Transmission & Distribution (T&D) loss contribution by the distribution sector is about 18-20%.
Losses in old and inefficient transformers, error in meter readings, billing errors, unmetered
supply, collection inefficiency etc. causes problems in the distribution level. Many of these
issues can be resolved with the help of Smart Meters and smart grid applications, Information
and Communication Technology applications, installation of energy efficient distribution
transformers and reduction in the joule effect (heating losses) in conductors (adequate capacity
distribution lines), cables etc. Micro grid can play a significant role in providing access of
electricity to remotely located places in an efficient manner. Poor power quality such as low
power factor, high harmonics, power interruptions etc, result in significant loss in electrical
energy. It is estimated that by reducing AT&C loss from 26% to 10%, there can be annual
saving of about ` 35,000-40,000 crore.
Sugar Industry
The major raw material for sugar industry is sugar cane (80%). Only 12 tonnes of sugar is
extracted out of 1000 tonne cane crushed. By cogeneration, sugar industry can produce
enough electricity and thermal energy for its energy usage, which makes it self-sufficient and
the additional units generated can be exported to the grid. There are many identified energy
efficiency opportunities in sugar industry which can maximise the power generation and
minimise energy consumption. By implementing such activities, an energy saving target of
about 1,350 crore units per year is envisaged. A total saving worth ` 6,750 crore/annum is
identified in the sector.
6
xviii
MT = million Tonne
Executive Summary

Indian Railway
Railways are one of the cheapest ways of transportation in the country upon which the economy
highly depends. Most of the locomotives in transit are either diesel or electric driven and few
locomotives driven on coal. The Indian railway has recently launched a website RAILSAVER
with an aim to save 15% of the energy consumed in the sector by 2020. In compliance to this,
the sector has initiated many energy efficiency activities. The net saving envisaged in the sector
accounts to 0.34 million toe and 2.07 billion kWh.
Investment Potential
The investment potential over five years in the energy efficiency estimated for various sectors
is brought out in Table 2.
Table 2 : Estimated Energy Efficiency Investment Potential in India
Sl.
No.
Sectors
Saving Potential per

year (`Crore)
Investment
Potential Over
5 yr (`Crore)
Thermal Power Plant
8,440
42,200
Iron and Steel
16,200
81,000
Cement
5,400
27,000
Chemical
20,800
10,4000
Aluminium
2,100
10,500
Pulp and paper
3,760
18,800
Textile
13,940
69,700
Buildings
21,800
1,09,000
Municipal street lighting
6,000
30,000
10
53,600
2,68,000
11-A
Municipal Water Pumping
2,780
13,900
11-B
Agricultural water pumping
20,000
1,00,000
720
3,600
15,900
79,500
300
1,500
12
Ceramic
13
Small and Medium Enterprises
14
Coal Sector
15
Transmission and Distribution
40,000
2,00,000
16
Sugar
6,740
33,700
17
Railway
2,660
13,300
2,41,140
12,05,700
Total
Executive Summary
xix

Highest investment potential is found out to be ` 2,70,000 crore in Transportation sector followed
by Transmission and Distribution sector with ` 2,00,000 crore. Commercial and residential
sector together contributes to ` 1,11,000 crore where residential sectors contribute to the
major share. Chemical sector including the petrochemical sector has an investment potential
of about ` 1,00,000 crore which is in line with the energy efficiency investment envisaged in
agricultural water pumping. Thereafter, major potential exist in the SME sector with around
` 80,000 crore. Coal based thermal power plants alone have an investment potential of about
` 42,200 crore. Other sectors like textile, steel & iron, street light, coal, cement, aluminium,
paper manufacturing industries, etc. contribute to ` 3,00,000 crore.
Various promotional activities become part of the envisaged investment. Installation of Waste
Heat Recovery systems has to be made mandatory in industries consuming high thermal
energy. Promotion of public awareness on importance of energy conservation, use of star
rated appliances and usage of energy efficient lighting can bring considerable saving potential
in the building sector. Capacity building awareness and Training programs in the annual
training calendar of different corporate sectors may be made mandatory. Formation of single
window clearance for energy efficiency projects shall speed up achieving the desired energy
conservation goals. Promotion of environmental friendly electrical/hybrid vehicles through
various financial incentives can bring about substantial saving in the transportation sector.
Status of Energy Efficiency measures in India and abroad

Various types of energy efficiency measures are being implemented in different parts of
India and abroad depending on the prevailing policies and regulations. In India, many of the
states have identified Nodal agencies to facilitate energy efficiency measures implementation
and promotion of renewable/non-conventional sources of energy. These agencies promote
energy efficiency measures through various awareness campaigns, pilot projects, exhibitions,
development of energy efficient buildings, distribution of energy efficient lighting system (CFLs
/ LEDs), workshops & seminars, and various other means.
Worldwide energy efficiency measures are implemented in different countries and necessary
policies and regulations are issued by governments of the respective countries to overcome
barriers in this direction. Different types of fiscal measures and tax incentives like rebate
on purchasing energy efficient electrical appliances, soft loans, grants/subsidies for energy
efficiency projects etc. are being given in many countries.
Policy & Regulations
Policies and Regulations in the field of Energy Efficiency, Energy Conservation and solar
generation as part of Renewable Energy can help India to bridge the gap between current
energy demand and supply. Energy Conservation Act, Electricity Act, ECBC, NAPCC etc. are
some of them, which have encouraged energy efficiency. Standards & Labelling Program,
Bachat Lamp Yojana (BLY), Domestic Efficient Lighting Programme (DELP) are few GoI.
initiatives which creates consumer awareness about energy efficiency.
After studying the policy regulations in various developed countries, it could be concluded
that India has to go much further in creating strict & effective policies and regulations. It can
be in the field of fiscal measures and tax incentives, energy efficiency awareness, market
transformation mechanisms, mandating standards & label equipment manufacture etc. Being
the major energy consumers, strict regulations have to be implied up on the power generation,
transportation and industrial sectors such as that required for energy efficient electricity
generation, efficient consumption, adaptation of renewable sources of energy etc.
xx
Executive Summary

Research & Development and Demonstration
R&D and Demonstration (RDD) activities in the field of energy efficiency improvements in
India are less as compared to developed countries. There is also lag in proper utilization of
the allotted fund from Governments. This results in purchasing advance technology products
from outside at a much higher price than what exactly is involved in its production. This has
to be taken seriously and various industries in the country may take keen interest in R&D and
demonstration of energy efficiency technology for indigenous development in association with
premier institutes and research organizations in India.
Implementing the Proposed Energy Efficiency Measures

To achieve potential energy savings as brought out in this report, following measures need to
be taken on priority.
1.
Mandatory Waste Heat Recovery system (WHRS) in industries like Steel & Iron Sector,
Thermal Power Plant, Cement Industry, ceramic Industry, Sugar Industry and various
SMEs.
2.
Use of Energy Efficient appliances/machinery in all the sectors. Necessary policies are
required for mandatory use of energy efficient appliances in a gradual manner, so that
after a pre-defined period, there is a complete ban on production and use of inefficient
appliances.
3.
Adopting Energy Efficient Lighting System in residential and commercial/industrial area.

To begin with all the public buildings and public places shall be equipped with efficient
energy lighting systems and necessary awareness and promotional measures shall be
taken on priority for use of efficient lighting system by other sectors.
4.
Provision for Single Window Clearance for Energy Efficiency Projects. A nodal agency
may be identified for providing single window clearance to agencies working for energy
efficiency/energy conservation related projects in each state and shall coordinate as
well as interact with various Govt. departments/organisations for providing necessary
clearances. The Single Window will review the issues relating to the statutory clearances
of various departments. The clearances/approvals which are not accorded within the
specified time period will be dealt by the Single Window empowered committee.
5.
Each state shall promote greater awareness and ensure compliance with energy
conservation and energy efficiency issues. Include the subject of energy efficiency into
school/collage curriculum for creating general awareness.
6.
Capacity building and Training programmes regarding energy efficiency shall be made
mandatory in the annual training calendar of different corporate sectors/industries for all
level of employees.
7.
Use of Energy Efficient & environmental friendly electrical/hybrid vehicles shall be

promoted through various financial incentives.
8.
To identify the energy saving potential and implement various energy efficiency
measures, energy audit shall be made mandatory in all the industrial, commercial and
other sectors.
9.
To ensure compliance of various energy efficiency policies and regulation, various

national and state level certification agencies may be developed.
Executive Summary
xxi

In order to facilitate implementation of various measures for energy efficiency as brought in
this report, it is proposed that following actions may be taken up by the Regulator, Statutory
Authorities, BEE, state designated agencies, utilities etc.
Sl. No. Activities
Role/Responsibility
Policies to encourage energy

efficiency and for identification of
energy efficiency opportunities
MOP, State Governments in association

with BEE and SDA respectively
Assessment / Reassessment of Energy

Efficiency Opportunities in each sector
BEE /SDA
Energy Audit
MOP/BEE, Central / State Utilities,

Designated Consumers
Implementation of Energy Efficiency

Measures
Central / State Utilities, BEE, Utilities/

ESCO8
Promotion of Electric / Hybrid vehicles
Ministry of Road Transport and

Highways, State Governments
Single Window Clearance for Energy

Efficiency Projects
Ministry of Power, State Governments
Setting up of Energy Efficiency

institute, Capacity Building
BEE/SDA9 /EESL10 /Central & State

Utilities
Conclusion
India being an energy importer has been struggling to reduce its energy deficits since many years.
The increase in energy import is one of the major factors affecting the price hikes and current
account deficit. Presently, India is the fourth largest energy consumer in the world after China,
USA and Russia and is expected to be the second-largest contributor to the increase in global
energy demand by 2035, accounting for 18% of the rise in global energy consumption.
To ensure national energy security and sustainable supply the countrys energy sector needs
rapid renovation. This report explores various energy intensive sectors in the country especially
Thermal Power Plants, Steel & Iron sector, Transportation sector, Commercial and Residential
Buildings, Small and Medium Enterprises (SMEs) etc. and estimates necessary investment
potential required for energy efficient implementations. Awareness regarding efficient usage
of energy in all sectors is the need of the time. Energy audit in energy intensive industries/
sectors will facilitate this. The investment potential explored in all the energy intensive sectors
considered in this report totals about ` 12,00,000 crore over due period of 5 years. With an
annual saving of ` 2,40,000 crore, successful implementation of various energy efficiency
measures would require contribution from agencies like ministry of power, state/central utilities,
industries, end consumers, financial institutions etc. It is expected that with the proposed
energy saving measures, about 246 billion units of electricity, 88 million tonnes of coal and
12 billion liters of oil can be saved per annum. This will also help in reducing CO2 emission.
ESCO=Energy Service Companies

SDA=State Designated Agencies
10
EESL= Energy Efficiency Services Limited
9
xxii
Executive Summary
Chapter
Energy Efficiency Overview

1.1.
Introduction
Energy is prime mover for economic growth of any country. It is an indispensable commodity
for the existence of any modern civilization. A countrys economic backbone is upheld by
its energy security. Energy security can be assured only if the nation is having unconstrained
access to energy resources to fulfil its energy requirements for a long period with sustainability.
The primary energy sources of our country are fossil fuels and since their availability for such
a long period is limited, alternative need arises. It can be non-conventional sources of energy
like solar, wind, biogas, biomass etc. or new form of fuel that is now gaining its momentum in
the form of Energy Efficiency.
As on 2014, India is 10th largest economy in the world by nominal GDP and 3rd largest in term
of Purchasing Power Parity (PPP). The GDP growth rate in India is around 8% since year 2000.
To maintain this growth rate for next 20 years, the primary energy supply has to increase by
approximately 3-4 times from the present level. Majority of the electrical energy produced
in India come from fossil fuel and among that the major share is coal. Further setting up of
generating plants to cater for the deficit in energy demand would be an expensive proposition,
especially for a developing country like India. Therefore, the challenges are to curtail the
increasing energy demand without compromising economic growth.
Nominal GDP: A Gross Domestic Product (GDP) figure that has not been
adjusted for inflation.
Purchasing Power Parity: An economic theory that estimates the amount of
adjustment needed on the exchange rate between countries in order for the
exchange to be equivalent to each currencys purchasing power.
Towards this, adopting enhanced energy efficiency/conservation measures has become

imperative. Under these circumstances, the Government of India has launched the National
Mission for Enhanced Energy Efficiency (NMEEE) under the National Action Plan on Climate
Change (NAPCC) to achieve about 20,000 MW of avoided generation capacity in the country
by 2022. Under the same programme, Government has announced the reduction of Indias
carbon intensity by 20-25 % by 2020 compared to 2005 levels. NMEEE proposes initiatives like
Market Transformation for Energy Efficiency (MTEE) to accelerate the shift to energy efficient
appliances through tax incentives, to help financing of demand side management programmes
in industrial sector etc.
Energy Conservation VS Energy Efficiency

Energy Conservation and Energy Efficiency are related concepts aiming at saving
energy, often used interchangeably, but are different. Energy conservation is
a behavioural change where as energy efficiency aims in using energy more
effectively. Energy conservation often involves sacrifices to comfort and safety
where as energy efficiency delivers the same output with less input.
Examples for energy conservation:
1.
Lowering the thermostat of Geyser
2.
Occupancy Sensors for Lights
3.
Using Public transport instead of private vehicle
Examples for energy efficiency:

1.
Replacing CFLs with LEDs of same lux level
2.
Selection of correct size pumping system
3.
Using energy efficient appliances (star rated instead of non-star).
1.2.
Energy Efficiency Activities
Bureau of Energy Efficiency (BEE) is the nodal agency established under Energy Conservation Act
2001 which works under the Ministry of Power to coordinates the energy efficiency initiatives
at both central and state level. The agency has the prime objective to reduce energy intensity
in the country, institutionalize Energy Efficiency (EE) services, enabling delivery mechanism,
and promote the key players involved in energy conservation and energy efficiency activities.
Standard and Labelling (S&L) programme is one of the key areas in the Energy Conservation
Act 2001 which specifies various energy consumption standards, prohibit manufacture or sale
or import of equipments and appliances that do not meet standards, mandates display of
Energy performance labels on equipments and appliances.
Energy Conservation Building Code (ECBC) launched by Indian government during 2007 sets
out the minimum energy standards for new commercial buildings having a connected load of
100 kW or contract demand of 120 kVA.
Why energy saving is important?

Worlds basic energy requirements are met from conventional sources of energy like
coal, oil and gas which are easily extractable. Since the industrial revolution, these
resources have been explored at an alarming rate. The only fuel that can serve as an
alternate to the aforementioned is nuclear energy where in the social acceptability
is very poor. At this scenario, the importance of conserving (saving) conventional
energy sources has become a necessity which can be done only by approaching
towards the activities related to significant savings in energy use.

The establishment of Energy Service Companies (ESCOs) are another key factor for the success
of energy efficiency market development, which combined with fiscal incentives can help in
unlocking the energy efficiency market potential and deliver both energy saving and financial
returns. It is pertinent to note that ESCOs have been successful in enhancing energy efficiency
of small and medium enterprises worldwide. The main barriers in Indian SMEs to tackle energy
efficiency is the reluctance of organizations to enter into long term contracts, non-involvement
of top management in energy efficiency projects, inadequate awareness of the energy efficiency
potential and its accrued benefits.
Several studies have been done in the field of energy efficiency for different sectors by various
researchers. Many have mentioned about the saving potential obtained by adopting energy
efficiency measures. In most of the literatures, energy per unit output in various sectors (say
Heat input per kWh generated) are compared with levels attained in developed countries. At
present since the energy efficiency market is gaining its importance, a road map is required to
provide direction for the key energy efficiency participants.
This report highlights the importance of energy efficiency measures and gives an overall idea
about the energy efficiency potential in various energy intensive sectors in India like industries
covered under Perform Achieve & Trade (PAT) scheme, Agricultural pumping, Transportation,
Ceramic, Building, T&D etc. In addition, investment required in each sector during next
five (5) year period to achieve the energy saving targets is also estimated.
Case studies carried out by various organizations across different sectors are also presented.
Various rules and regulations that are followed in developed countries have been analysed
and relevant ones are brought out in this report which can be adopted for an energy efficient
future of the nation.
1.3.
Energy Efficiency Why we need it?
Energy Efficiency is considered as the most promising fuel for energy supply as it is considered
that saving in one unit of energy is equivalent to avoiding 2 units of capacity addition taking
into account losses at various conversion stages. Due to limited availability of primary energy
resources world over there is renewed interest in the area of energy efficiency and there is
huge investment by the governments and financial institutions to see that the available energy
is utilised efficiently instead of planning to add more capacity i.e. smart energy usage. As more
and more energy efficient technology are coming out for the energy intensive sectors, the task
now become more lucrative than ever before.
As mentioned earlier, main source of energy in India is from fossil fuel like coal, oil and natural
gas. Fossil fuel is depleting at a fasterpace. With the present recovery rate, it has been estimated
that the coal will not last for more than 60 years and oil for more than 100 years. With the
accelerated recovery of these fuels, we will be left with no fossil fuel in a very short time.
Huge investments are made for generation of electricity. Considering the loss in the entire
supply value chain i.e., generation, transmission and distribution, the energy received for
useful work is considerably less. The average thermal power generation efficiency is not more
than 35%. The transmission and distribution losses are on an average of 26%. Leaving all other
losses, we are left with less than 30% of the initial energy (energy at source).
Further generation of electricity from fossil fuel, which is about 70% in India, leads to generation
of lots of Carbon Dioxide (CO2) and other greenhouse gases leading to global warming and
other environmental concerns. Adapting to energy efficient practices has no side effects.

Rather it reduces the harmful environmental effects by avoidable generation without affecting
availability. The energy resources presently explored in world are illustrated in Figure 1-1.
Figure 1-1 : Energy Sources
To make industries globally competitive, cost

of production has to be less. There are various
components to the cost of the product but it is
seen that in most of the sectors, the specific
energy consumption (SEC) is much more than the
international level and any reduction shall make
Indian industries more competitive.
As energy is a major component in manufacturing
cost of any product, inefficiency at every level shall
add up to the cost of the final product.
As energy is a major component

in the manufacturing cost of any
product, inefficiency at every
level shall add up to the cost of
the final product. This may make
it non-competitive.
India has a huge agricultural backbone. It is estimated that about 20 million agricultural pumps
are in operation for irrigation purpose. As most of the states provide either free or subsidised
power, the pumps installed are very inefficient and draws power at very low power factor.
This not only brings down the distribution voltage but also leads to wastage of energy. BEE
has star rated agricultural pumps and it is estimated that energy efficient pumps can bring the
efficiency improvement from 30-50% and the cost can be recovered from the saving in energy
in short period of time.
Similar case is with municipal water pumping system, municipal street lights and other areas.
It is estimated that the energy shortage in the grid can easily be met by adapting to energy
efficiency and new demands can be met easily with aggressive approach on energy efficiency
in all fonts.
4

Government of India is committed to improve Energy Efficiency in all areas. The Energy
Efficiency requirement needs to be brought to light by awareness and providing financial
support with a suitable payment security mechanism to investors as a win-win situation for
both.
Energy efficiency can be practiced at any place; at home, office, industry, institutions,
commercial establishments etc. It starts providing revenue earnings without delay. It provides
savings to the establishment and also builds the nation towards energy security. Adoption
of energy efficiency is the only solution left with the nations across the globe for attaining a
sustainable growth.
Energy Intensity: Energy consumption per unit GDP is the world standard for
measuring how efficient an economy is at using energy.
Lower energy intensity refers to better energy utilization. According to Enerdata, in 2012,
country with lowest energy intensity was Colombia. The top 10 countries by lowest energy
intensity are given in Table 1-1.
Table 1-1 : Energy Intensity in various countries-2013
Sl. No.
Country
Energy Intensity
Colombia
0.077
United Kingdom
0.091
Spain
0.096
Italy
0.099
Portugal
0.103
Turkey
0.106
Japan
0.112
Germany
0.113
Chile
0.122
10
Mexico
0.122
The energy intensity of India was 0.186, which fell by 38% between 1990 and 2012, is now in
line with the world average. The high energy intensity in the Commonwealth of Independent
States (CIS), the Middle East, China and other Asian developing countries is mainly explained
by the predominance of energy-intensive industries and low energy prices which do not favour
energy efficiency.
1.4.
Energy Efficiency Barriers to overcome
In India, though there is a huge potential to reduce specific energy consumption (SEC) in
industries, other establishments and to improve energy efficiency in energy intensive sectors,
it is not being adopted due to various reasons. It is expected that adapting to energy efficiency
can play a vital role in bridging the gap between energy supply and demand. There are barriers
which are required to be overcome for a fruitful solution. Some of the vital barriers are listed
below which needs careful analysis to address the issue:
High initial capital investment
Measurement and Verification Risk
Lack of awareness
Information deficiency
Limited access to capital
Absence of mandatory policies and incentives
Long payback period in some cases and need for comprehensive ESCOs.
High Initial Capital Investments

Energy efficient equipment needs a high initial investment compared with the conventional
one. Further the cost to retrofit in an industry requires shut down of the plant for considerable
time period and requires a substantial upfront investment. This cost can be difficult to justify
for organizations despite the cheaper overall life cycle costs of such improvements. Most of the
public and private organizations focused on minimizing upfront costs, too often these types of
large-scale investments are avoided unless deemed absolutely necessary by the organizations
leadership. Lack of technology in developing indigenous energy efficient products is another
reason for the higher cost.
Measurement and Verification Risk
External investor is afraid of investing in energy efficiency project due to risk involved in
the Measurement and Verification (M&V). In order to justify initial energy efficiency capital
investment, external investor requires a considerable degree of confidence that the resulting
energy cost-savings will occur and deliver a reasonable return. While energy cost-savings are
quite reliable for many energy efficiency investments, few players or mechanisms currently
exist to measure and verify these savings, making it difficult and costly to collect and track
the quantitative evidence required by investors. Until this data is widely available, investors
will continue to regard energy efficiency as inherently risky. The change in the production
schedule, the loading criteria of the plant, diversification and other unforeseen incidents can
derail the initial estimate and the investor is at a loss as they are not in a position to recover
the cost.
Lack of awareness
Most of the establishments keep energy efficiency as non-priority area as they think other areas
require more attention of the top management. Energy efficiency is not generally part of the
core mission statement of organizations. As a result, energy efficiency investments are often
pushed to the side when drafting annual budgets or pursuing outside investor interest in favour
of other investments that are deemed more essential to the institutions core business activities
and operations, such as improving customer satisfaction, gaining market share, or expanding
production. Due to these practices, individuals within institution face significant challenges in
accessing the necessary capital to pursue energy efficiency improvements.
Information Deficiency
There is a lack of systematic and reliable information available on the energy efficiency (EE)
potential in the Indian economy (by sector, subsector, consumer and project type) and on the
details of EE projects financed in India, by banks, financial institutions, and other investors. This
lack of information hinders the development of large-scale investment plans, public programs,
and the evaluation of past programs and successes therein. As a result, companies remain
unaware of cost-effective energy-efficiency opportunities.
6

Evaluating energy-saving opportunities require information on the levels and patterns of energy
consumption and how they compare with benchmarks. In this regard information on specific
energy-saving opportunities are often lacking to some degree. Without knowing where and
how energy is used, companies cannot know where to look for savings and how to achieve
them, so there is limited incentive to invest in industrial energy efficiency.
Limited Access to Capital
To invest in an energy-efficiency project, a firm needs funding either from retained profits or
equity or from a commercial bank or specialized financial institution. Getting a loan for industrial
energy efficiency is difficult in developing countries due to volatile capital market situation. One
issue is shortfalls in technical capacity in financial institutions. Missing or incomplete financial
and risk insurance markets create high barriers to industrial energy-efficiency investments in
developing countries.
Small firms have the most difficulty in getting capital because of higher risks of ensuring
repayment, costs to the lender of establishing credit-worthiness, small size of industrial energyefficiency projects, lack of adequate security for loans and limited experience in assessing loan
requests for industrial energy-efficiency projects.
Absence of Mandatory Policies and Incentives
Government policies need to incentivize investments to improve energy performance. If a
public institution implements an energy performance upgrade that saves a certain amount of
money in energy costs per year, in next year the state government may reduce that institutions
annual budget by an amount equal to these cost-savings effectively penalizing the institution
for its effort and failing to incentivize additional investments. Energy Efficiency is not mandate
for construction of building, establishing an industry or installing equipment. PAT by BEE is
trying to address existing heavy industries with incentives and penalties but this need to be
implemented for new upcoming establishments also. With firm government policies and
regulation, it can be expected that more energy efficiency measures to be implemented in the
country. Energy price and energy policy are the two important motivators for adopting energy
efficiency.
Long Payback Periods and need for Comprehensive ESCO
Though cost-savings from energy efficiency upgrades are usually large, stable, and predictable,
they do often require significant initial capital investments that can take a number of years
to pay off before becoming profitable, causing these projects to have relatively long payback
periods compared to some other types of revenue-generating investments. For example a LEED
Platinum rated building may take about 6 to 7 years for its payback of the initial investment.
Further, many large publicly-traded companies impose short payback requirements on their
various investments in order to encourage short-term profits meaning that energy efficiency
projects with even very high net present values (NPVs) are frequently overlooked in favour
of other investments with quicker returns but lower long-term earning potential. Focusing
exclusively on simple payback as the metric of financial success for investments may cause
companies to ignore numerous highly profitable cost-savings opportunities. Further government
may come out with policies for ESCOs to avoid double taxation when they install third party
products. Double taxation makes ESCOs expensive for most of their operations and clients
may not be willing to pay the extra burden.
Chapter
Indian Energy Scenario & Efficiency

Opportunities
2.1
Introduction
To support the growing economy of India at about 8% to 10% annually over the next 25
years, an increase of at least 3 to 4 times of primary energy supply from the present level is
imperative, which would be generated primarily from coal [1]. The annual average growth rate
of the total energy requirement in India was expected to rise from 5.3% per annum in the 11th
five year plan to 5.7% per annum during the 12th five year plan. The faster growth in supply in
the 12th plan is a reflection of the need to meet increased demand. With above estimates, it is
seen that country needs more and more energy. At the same time it lacks sufficient domestic
energy resources particularly of Coal, Petroleum and Natural Gas.
Figure 2-1 : Import Dependence
Planning Commission statistics (Figure 2-1) reveal that though domestic production of energy
resources is projected to increase, import dependence will continue to remain at high level
[1]. The main area of import will be crude oil, where nearly 78% of the demand will have to
be met from imports by the end of 12th plan and it will increase to 82% in 13th plan. Similarly,
import dependence for coal is also estimated to increase from 18.8% in 2012 to 22.4% by the
end of the 12th plan and 25.9% by the end of the 13th plan. In total, 37% of Indias commercial
energy needs (i.e. Coal, Petroleum products etc.) are envisaged to be imported, which shall
remain of the same order even in 13th Plan & beyond, which is a major concern in terms of
attaining energy security and a threat to the economic growth.
It is worth to mention that, as a percentage of total commercial energy, coal shall continue to
remain dominant source (~55%) of primary energy till 2021-22 and possibly beyond. As per
the statistics, volume of import of coal has more than doubled during last five (5) year plan,
which shall continue to be at that level in future.
Indian Energy Scenario & Efficiency Opportunities
2.2.
Present Energy Scenario
The gross energy generation in the country for the year 2013-14 was 960 BU from the power
plants against the requirement of 1002 BU in comparison with the actual energy generation of
912 BU of the year 2012-13, an increase of about 5.2%.
As per the CEA report for 2013-14, all India power supply position indicates that the country
is experiencing an energy shortage of 4.2% and peak shortage of 4.5% [3]. The actual energy
shortage and peak shortage for the year 2012-13 were 8.7% and 9% indicating that addition
of generation alone will be difficult to bridge the gap and much has to be done to reduce the
actual consumption of electricity.
Figure 2-2 : Distribution of Sector wise consumption of Electricity during 2011-2012
The electricity consumption increased from 43.7 BUs during 1970-71 to 959.8 BUs during
2013-14, showing a CAGR of 10.84%. The increase in electricity consumption is 38.22%
from 2010-11 (694.4 BUs) to 2013-14 (959.8 BUs). Figure 2-2 gives the sector wise share
of electricity consumption during 2011-12. In 2011-12, industrial sector accounted for the
largest share (44.84%) in electricity consumption, followed by domestic (22.01%), agriculture
(17.30%) and commercial (8.97%). The electricity consumption in domestic and agriculture
sectors has increased at a much faster pace compared to other sectors during 1970-71 to
2011-12, with CAGRs of 9.44% and 8.43% respectively.
As on 2013, a potential of about 245 GW has been estimated from different renewable energy
sources which include over 100 GW each from Wind and Solar Energy, 20 GW from Small
10

Hydro Power (SHP) and balance 25 GW from different Bio-energy sources. As assessment of
renewable energy potential is an on-going exercise, these figures may change (increase) in
course of time. The total installed capacity of power generation in the country was 254 GW as
of 22nd Oct 2014. This includes 31.7 GW from renewable energy sources which corresponds
to 12.5% of the total installed capacity.
2.3.
Primary Energy Resources
Coal
Coal is the most abundant and geographically dispersed fossil fuel. As per World Coal
Association, Coal provides around 30% of global primary energy, generates 41% of the worlds
electricity and is used in the production of 70% of the worlds steel. It has been estimated that
there are over 826 billion tonnes of proven coal reserves worldwide. Around half of the worlds
proven reserves are Bituminous coal and Anthracite, the grades of coal with the highest energy
content. According to BP Statistical Review of World Energy 2013, there is enough coal to last
around 109 years at current rates of global production and consumption [4]. Coal reserves are
available in almost every country worldwide with recoverable reserves in around 70 countries.
The biggest coal reserves are in the USA, Russia, China and India.
Some of the recent independent study by Greenpeace India indicates that at targeted growth
rates (8%), Coal Indias extractable coal reserves could be exhausted within 17 years (i.e. by
2030) [5]. This is within the lifetime of Indian power plants recently constructed, and those
currently under construction/approval.
Oil and Natural Gas
Oil and natural gas are likely to play a significant part in meeting demand for several decades.
It is believed that these energy sources represent about 54% of total energy consumption
in 2035. Even under the International Energy Agencys (IEA) most ambitious climate policy
scenario, oil and gas would still make up 47% of the energy mix in 2035. Oil shall remain the
dominant source for transport fuels, accounting for as much as 87% of demand by 2035.
Natural gas, in particular, is likely to play an increasingly strategic role. According to BP statistical
review 2012, natural gas constitutes around 10% of Indias total primary energy basket which
is likely to increase to 20% by 2025. Domestic natural gas production in India was only 180
Million Metric Standard Cubic Meter per Day (MMSCMD) in 2010-11 against an estimated
demand of approximately 279 MMSCMD as per 11th five year plan. As of June 2014, the
production was only 85 MMSCMD with a demand of 360 MMSCMD.
India has total gas reserves (indicated & proven) of 1330 Billion cubic meters. If Reserve/
Production ratio is calculated on existing potential and production level (180 MMSCMD) this
reserve would be sufficient only for approximately 20 years to meet the demand with no
imports. Out of total demand, approximately 45-50% of total gas production is allocated to
the power sector. Sector wise consumption of Natural Gas is shown in Figure 2-3. In view of
the increasing need of gas based generation, import dependency on gas will increase due to
limited gas reserves.
Sector-wise consumption of different petroleum products reveals that miscellaneous service
sector accounts for the lions share (81.29%) of the total consumption of petroleum products
(Figure 2-4).
11
Figure 2-3 : Sector wise consumption of Natural Gas
Figure 2-4 : Sector wise consumption of petroleum products
2.4.
Per Capita Energy Consumption and Energy Intensity
Per-capita Energy Consumption (PEC) and Energy Intensity (EI) are the most used policy
indicators, both at national and international levels. In the absence of data on consumption
of non-conventional energy from various sources, particularly in rural areas in the developing
countries, including India, these two indicators are generally computed on the basis of
consumption of conventional energy.
12
Per-capita Energy Consumption (PEC): The ratio of estimate of total energy

consumption during the year to the estimated mid-year population of the
same year
The increase in PEC from 2010-11 to 2011-12 was 3.36%. The Energy Intensity (at 1999-2000
prices) increased from 0.128 kWh in 1970-71 to 0.165 kWh in 1985-86, but it has again
come down to 0.148 kWh (at 2004-05 prices) in 2011-12. The energy intensity per unit Gross
Domestic Product (GDP) is much higher in India (3.7 times from Japan, 1.5 times from USA)
than many of the countries of the world leading to high wastage of energy, power shortage and
uncompetitive product pricing hindering international trading and therefore large potential for
Energy Efficiency.
2.5.
Projected Demand Scenario
In 14th plan (2023-27) and 15th (2027-32) plan, growth in demand is expected to be
@7.16% and 6.22% CAGR respectively, projecting the demand at 542 GW by end of 15th plan
(2027-32) as shown in Figure 2-5. In order to evaluate long term demand for year 2050, two
scenarios have been studied. In optimistic scenario, demand growth of 6% CAGR has been
assumed which projects the demand to more than 1700 GW by 2050, almost 13 times of
present demand.
Figure 2-5 : Projected Peak Electricity Demand
In moderate growth scenario, reduced elasticity of demand growth w.r.t. GDP growth, due
to transitioning from developing to developed nation status, large scale implementation of
energy efficiency & energy conservation programmes coupled with Smart Grid application, is
envisaged to result in moderate CAGR demand growth (16th Plan [2032 onwards]-3.5% and
0.5% reduction in subsequent plan due to increased awareness, technological improvement
etc.) up to 2050. Present analysis takes moderate growth scenario in account based on which
electricity demand projections of the country up to 2050 are evaluated.
2.6.
Future Electricity Scenario and Necessity of Resource Mix &

Energy Efficiency
In order to meet the increasing requirement of electricity, massive addition to the installed
generation capacity in the country is required. Despite tremendous growth in capacity addition
13

in past few decades, country witnessed an energy shortage of 4.2% and peak shortage of 4.5%
during 2013-14. Reducing this gap is critical for India to achieve its growth targets. The average
per capita consumption of electricity in India was a mere 912 kWh (2012-13), compared to
the world average of 2,800 kWh (2010). The other comparable countries, like Brazil, Russia,
China have significantly higher per capita consumption compared to India.
To meet growing demand and to reduce supply- demand gap, there is a need of large capacity
addition through conventional as well as from renewable sources. It is estimated that during
12th plan, about 88 GW generation capacity would be added from conventional sources. In
addition, grid interactive renewable capacity addition of about 33 GW has been envisaged
during 12th plan comprising of Wind, Solar and Small Hydro. In 13th plan also, about 86 GW
generation capacity is envisaged to be contributed through conventional sources.
Considering the limitation in generation, transmission and distribution, energy efficiency
solutions are viable alternative. Energy efficiency implementation not only bridge the gap
between demand and supply but also reduces carbon emission and give boost to the industries
to be competitive. It is expected that to meet the present and upcoming energy requirement,
demand side management (DSM) such as efficient usage of energy, shifting of energy use from
peak hours to other than peak hours, etc. would play a vital role. Focus on energy efficiency
is required as it is easiest way to implement in shorter time. It is estimated that 23% of the
present generated energy could be saved by adopting simple and practical approach towards
energy efficiency improvements.
2.7.
Energy Efficiency Opportunity in PAT Industries
Perform, Achieve and Trade (PAT) is a market based mechanism to enhance cost effectiveness
of improvements in energy efficiency in energy intensive large industries and facilities, through
certification on energy savings that could be traded. The scheme is designed and implemented
by the Bureau of Energy Efficiency (BEE), under the Ministry of Power, Govt. of India. The origin
of the PAT mechanism flows out of the provision of the Energy Conservation Act, 2001. In
March 2007, the Ministry of Power (MoP) has notified industrial units and other establishments
consuming energy more than the threshold in eight (8) sectors as Designated Consumers (DCs)
as shown in Table 2-1.
Table 2-1 : PAT Cycle-1 Energy Saving Targets
Sl. No.
PAT Industries
No. of Identied DCs
Thermal Power Plant
3.211
144
Iron and Steel
1.486
67
Cement
0.816
85
Fertilizer
0.478
29
Aluminium
0.456
10
Pulp and paper
0.119
31
Textile
0.066
90
Chlor-Alkali (Chemical)
0.054
22
6.686
478
Total
14
Saving Target
(million toe)

In the PAT mechanism, sectors are assigned efficiency targets. Industries which over-achieve get
incentives in the form of energy saving certificates. These certificates are tradable and can be
bought by other industries which are unable to achieve their targets. Under the penalty clause,
if an industry fails to achieve its target, it will be penalized. The penalty will be calculated on
the basis of what remains to be achieved to meet the target. This figure is multiplied by the
cost of energy. As each industry will be competing against itself only, it will have its energy
consumption in 2010 as its baseline data, to improve upon.
The energy saving targets of 8 sectors covered under PAT cycle 1 (2012-2015) is 6.686 million
toe distributed among 478 designated consumers, the major one being Thermal Power Plants
(target of 3.211 million toe) with 144 DCs followed by Iron and Steel (target of 1.486 million
toe). Breakups of saving targets of these industries are given in Table 2-1. Percentage savings
targets of identified industrial units and other establishments consuming energy more than the
threshold under PAT cycle-1 is shown in Figure 2-6.
Figure 2-6 : % Saving Targets of Various Industries under PAT-I
Percentage saving targets of the PAT is an innovative example of a market-based mechanism that
could incentivise large energy-consuming industries to enhance their efforts towards achieving
energy efficiency. Given Indias significant projected energy demand growth, there is enormous
potential for expansion in the energy efficiency market. Energy Efficiency opportunities in all
the aforementioned Designated Consumers and other potential industries are discussed in
detail in the following chapters.
15
2.8.
16
References
1.
Integrated Energy Policy, Report of the expert committee, GoI, Planning Commission,
Aug 2006.
2.
Indian Energy Security Scenario 2047, Planning Commission of India.
3.
Load Generation Balance Report 2014-15, Central Electricity Authority.
4.
BP Statistical Review of World Energy, British Petroleum, 2013.
5.
Running on Empty, Greenpeace India, September 2013.
Chapter

3.1. Introduction
Thermal Power Plants are the worlds major electric power sources. They utilize steam to
run turbines which are connected to electric generator. The heat energy required for steam
generation may be obtained from combustion of coal, oil, gas or by nuclear reaction.
Figure 3-1 : Installed capacity in India as on 31-10-2014
Majority of the thermal power stations in India are coal based and there are few based on
lignite, natural gas, nuclear. Source wise breakup of installed generation Capacity in India is
shown in Figure 3-1.
Table 3-1 : All India Installed Capacity (MW) as on 31-10-2014
Source
Total (GW)
Coal
153.57
Gas
22.61
Diesel
1.2
Nuclear
4.8
Hydro
40.8
Renewable
31.7
Total
253.4
The captive generation capacity is 39.37 GW.
Percentage
60.31
8.88
0.47
1.9
16.1
12.5
100.00
Analysing data given in Table 3-1, it is seen that India mainly depends - on coal based power
plants with approximately 60% share on installed capacity. 90% of the coal-fired generating
units in India are subcritical, with a maximum possible thermal efficiency of 35 to 38% [2].
17
3.2. Performance of Indian Coal Power Plants

The performance of coal power plants can be expressed in terms of the overall efficiency of
the plant. The efficiency can be based on either higher heating value (HHV) or lower heating
value (LHV) of coal. In India the efficiency calculation is basically done with higher heating
value (HHV). The best efficiency of a subcritical thermal power plant (coal based) in India with
the present available technology is approximately 37% which means remaining 63% is lost.
There are quite a number of thermal stations in India which are more than three (3) decades
old and running at very low efficiencies, even below 20% which need to be replaced with
technologically advanced ones. Efforts are being made to improve the efficiency of upcoming
thermal stations. Super-critical thermal stations have been under installation in the country with
overall efficiency above 40%. It is estimated that about 50% of coal-based capacity addition in
the 12th Plan is expected to be based on supercritical technology. For the 13 Plan, it has been
decided that all coal-fired capacity addition shall be through super-critical units only.
The Ministry of Power (MoP) has notified several industrial units and other establishments
consuming energy more than the threshold in 8 sectors. Among these, specific energy
consumption (net heat rate) for thermal station varies from 1774 kcal/kWh to 5134 kcal/kWh
(for the 144 thermal stations analyzed in PAT cycle 1). Under PAT cycle-I, 3.211 million tonnes
of oil equivalent can be achieved through thermal power plants. This accounts to 7.14 Million
Tonnes of coal (@ calorific value 4500 kcal/kg). In monetary terms this is about ` 11.5 billion
(` 1610/Tonne of coal).
Thermal power plant consist of various sub cycles / systems like air & flue gas cycle, main steam,
feed water & condensate cycle, fuel & ash cycle, equipment cooling water (ECW), auxiliary
cooling water (ACW) system, compressed air system, electrical auxiliary power & lighting
system, HVAC system etc. which provides tremendous scope of energy saving potential. The
schematic of a typical coal based thermal power plant is shown in Figure 3-2.
Figure 3-2 : Schematic of a coal based thermal power plant

18
3.3. Indian Economy and Thermal Power Plants

The power sector provides one of the most important input i.e. electricity for the economic
development of a nation. Availability of reliable and affordable power is critical for sustainable
economic development. To sustain GDP growth rate projected by the planning commission of
India, it is imperative that the power sector grows at a higher rate.
Figure 3-3 [Source: CEA & World Bank] shows the growth in GDP and Power generation during
the past decade. The power generation sector (especially thermal power plant) has to show a
remarkable capacity addition in the upcoming years. The envisaged future power generation
in India from different sources is given in Figure 3-4. As per the Planning commission of India,
for the GDP to grow at 9.0%, commercial energy supplies will have to grow at a rate between
6.5 and 7.0 per cent per year.
Figure 3-3: Comparison of growth in GDP and power generating capacity
Figure 3-4 : Indias power generation capacity over 200821
India expects that its projected rapid growth in electricity generation over the next couple of
decades is expected to be largely met by thermal power plants. Figure 3-4 [Business Monitor
International, India Power Report] shows that the share held by the Thermal power plants in
power generation portfolio increases at a much considerable rate during the following decade
and hence will be having a major impact on the economy and GDP growth.
3.4.
Energy Efficient Thermal Power Plants
There are many methods for improving efficiency of thermal power plants to bring down
the generation cost and maximize the generation levels. With this objective in view, several
techniques have already been implemented in various parts of the world and some of them
are explained below.
19

Cogeneration
Cogeneration or Combined Heat and Power (CHP) is the use of thermal power station to
simultaneously generate electricity and useful heat. Trigeneration or combined cooling, heat
and power (CCHP) refers to the simultaneous generation of electricity and useful heating and
cooling from the combustion of a fuel or a solar heat collector.
It is common in cold climates to drive community heating systems from a power plants
condenser heat. Such cogeneration systems can yield theoretical efficiencies above 95%.
By-product heat at moderate temperatures (100180C) can also be used in absorption
refrigerators for cooling applications [3]. The heat energy can also be used for running a heat
operated chiller for comfort cooling and / or refrigeration applications (e.g. aqua ammonia
system). Schematic diagram of a typical co-generation plant is shown in Figure 3-5.
Figure 3-5 : A Typical Cogeneration System
Integrated Gasification Combined Cycle (IGCC)

IGCC is a technology which tries to increase the energy utility of a conventional coal fired
power plant. Instead of being combusted as done in conventional pulverized coal fired power
plants, in IGCC coal is converted into a synthetic gas (or syngas). This high temperature syngas
is used to run gas turbines that generate power. The high temperature in the gasification and
the high temperature syngas coming out of the gas turbine are further utilized to heat water
and generate steam, which is used to run steam turbines to generate additional power (Refer
Figure 3-6).
Figure 3-6 : Schematic of an IGCC (Source: IEA)

20

IGCC incorporating the latest 1500C-class gas turbines can achieve efficiencies higher than
45% (LHV, net i.e. comparable with those of Advanced Ultra Super Critical Power (A-USC)
systems for pulverised coal) with bituminous coals [4].
Thermal efficiency is the main factor that puts IGCC above the conventional pulverised coal
technology (it could go up to 60%). This is a substantial improvement over the 35% efficiency
of pulverized coal plants. For each percentage rise in thermal efficiency, there would be a
reduction of about 23% in greenhouse gas emissions. These factors will also help IGCC plants
qualify for earning carbon credits.
Super Critical Power Plant (SCPP)

A power plant which operates above the critical pressure and temperature (221.2 bar, 374.15oC)
of water is called a super critical power plant. Supercritical steam conditions improve the
turbine cycle heat rate significantly over subcritical steam conditions. Overall supercritical
power plant efficiency of 42% is achievable with present supercritical parameters [5]. Super
critical technology has evolved over the past 30 years. Advancements in metallurgy and design
concepts have made supercritical technology units reliable and highly efficient. Modern super
critical technology is largely available in Japan and Europe for boilers and turbines ranging up
to 1000 MW [5]. A list of few super critical power plants in India is given in Table 3-2. Rankine
cycle for a supercritical power plant with one reheat is shown in Figure 3-7.
The Thermodynamic efficiency of a steam cycle increases with the

increasing temperature and pressure of the superheated steam that enters
the turbine. It is possible to further increase the mean temperature of
heat addition, by taking back partially expanded and reduced temperature
steam from the turbine to the boiler, reheating it, and re-introducing it
to the turbine. This can be done either once or twice, which is known as
single and double reheat, respectively.
a b : Condensate cycle up to De-aerator
b c : Boiler feed pump discharge
c d : Feed water heating
d e : Main steam generation
ef
: Expansion in turbine
g h : Expansion in turbine
fg
: Reheat steam generation
Figure 3-7: Typical Super Critical Cycle

with only one reheat
The main road block in increasing the inlet temperature and pressure of turbine is the material
constraint. It is also to be noted that the technology has made its foot step to Ultra Super Critical
(USC) Power Plants and Advanced USC Power Plants in the new era outdating the supercritical
technology. List of some of the Super Critical Power Plants in India is given at Table 3-2.
21

Table 3-2 : List of some Super Critical Thermal Power Plants in India
Sl. No. Name
Location
Units
Total MW
Mundra Thermal Power

Station-Adani
Gujarat
4 x 330 MW +
5 x 660 MW
4620
Tiroda Thermal Power

Station
Maharashtra
4 x 660 MW +
1 x 660 MW
3300
Sipat Thermal Power

Station
Bilaspur, Chhattisgarh
3 x 660 MW
1980
Koradi Thermal Power

Station
Nagpur, Maharashtra.
3 x 660 MW
1980
Darlipalli Thermal
Power Plant
Sundergarh, Orissa
2 x 800 MW
1600
Lara Thermal Power

Plant
Raigarh, Chhattisgarh
2 x 800 MW
1600
Supercritical technology units also offer flexibility of plant operation such as:
Shorter start up times
Faster Load change flexibility and better temperature control
Better efficiency even at part load due to variable pressure operation
High reliability and availability of power plant
Ultra Super Critical Power Plant

With the continuing drive to reduce power plant emissions including greenhouse gases, coal
fired power plants have been moving to ultra-supercritical (USC) steam conditions. General
Electric (GE) Energy has designed the next generation USC steam turbine generator with a
rating of 1000 MW to address the need for higher efficiency coal fired power plants. With inlet
steam conditions of 260 bar and 610oC/621oC (3762 psi and 1130oF/1150oF), the primary
objective for the advanced technology USC 1000 MW steam turbine is high efficiency. To
achieve this higher cycle efficiency, the design utilizes advanced steam turbine technology
and system design and a longer last stage bucket design in addition to ultra-supercritical steam
conditions [6].
Advanced Ultra Super Critical Power (USC) Plant
Advanced ultra-supercritical pulverised coal combustion (Advanced USC or A-USC) is a further
development of USC. But the aim of further raising the pressure and
temperature of the steam conditions to those required for A-USC systems 1 MPa = 10 bar
requires the use of super-alloys (non-ferrous materials based on nickel) for
plant components. Super-alloys are already established in gas turbine systems, but component
sizes in a coal plant are larger, the combustion situation is different, and pressure stresses are
higher. Consequently, new formulations and fabrication methods are necessary.
Advanced USC is under development in China, Europe, India, Japan and the United States,
with demonstration projects planned after 2020. By using A-USC steam conditions of 700C
22

to 760C at pressures of 30 MPa to 35 MPa, manufacturers and utilities are working to achieve
efficiencies approaching 50% (LHV) and higher. A-USC is expected to deliver a 15% cut in
CO2 emissions compared with super critical technology, bringing CO2 emissions down to 670
g/kWh [4]. Table 3-3 shows a comparative study between USC and A-USC technology [7].
Table 3-3: Comparison between USC and A-USC
Parameters
600oC USC
700oC A-USC
General Output
840 MW
840 MW
Main Stream (Pressure & Temp.)
24.1 Mpa, 600oC
30 Mpa, 700 oC
Reheat Steam (Pressure and Temp.)
4.3 Mpa, 600oC
6 Mpa, 730 oC
Condenser Pressure
683 mm Hg vac.
683 mm Hg vac.
Boiler Feed Water Pump
292oC
330 oC
Thermal Efficiency
Base
6% Improvement
Figure 3-8 represents the increase in power plant efficiency (net efficiency, LCV based) when
shifting to higher pressures and temperatures. By adopting Advanced - Ultra Super Critical
Power Plant Technology, 50% energy conversion (from coal to electricity) is possible. This is
accompanied with considerable reduction in emission levels.
Figure 3-8 : Variation of Power Plant Efficiency - varying inlet steam conditions
(Source : Siemens)
3.5.
Saving Potential and Investment
The average efficiency of thermal power plants in India is around 30%. If this can be improved
to 35%, considerable saving in coal use can be achieved reducing its import.
Using the data collected, it is found that there are more than 25 coal operated power plants
which are more than 30 years old with approximately 13 GW installed capacity (Annexure-I).
This could be replaced/substituted by construction of energy efficient power plant technologies.
As shown in Table 3-5, this requires an investment of approximately ` 60,000 crore.
23

With improvement in power plant overall efficiency, considerable coal imports can be avoided
which can fill up the current demand supply gap in coal sector to a great extent. Savings
calculation and investment required are briefly described in Table 3-4.
Table 3-4 : Energy Saving and Investment calculation
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
Particular
Current average coal power plant efficiency in India
Envisaged efficiency
Total Generation during 2013-14
Coal based Installed Capacity
Estimate energy production by coal based power plants
Coal energy consumed for 30% efficiency
Coal energy consumed for 35% efficiency
Energy saving achieved
Annual Saving in coal equivalent @ 4500 kCal/kg
Annual Monitory saving @ ` 1.6/ kg
Investment (@ 5 years pay back)
Value
30%
35%
960 BU
60.31%
579 BU
1930 BU
1654 BU
276 BU
52.8 million tonnes
` 8,450 crore
` 42,200 crore
Table 3-5: Investment for constructing supercritical power plant

replacing old subcritical ones
Sl. No. Particular
1
Capacity of generation units > 30 years old (Sub-critical
plants)
2
Cost of erecting 1 MW Super Critical Power Plant
3
Cost of erecting 13 GW Thermal Power Plant
Value
Approx. 13 GW
` 4.5 crore
` 58,500 crore
Increasing the power plant efficiency can considerably reduce the quantity of CO2 emissions.
It is to be noted from the Figure 3-9 that an increase in efficiency of power plant by 9% would
decrease CO2 emissions by 20%.
Figure 3-9 : CO2 reduction achieved Overall Coal TPP improvement

(Source : Siemens
24

This can be achieved by converting the subcritical plants to super critical and ultra-super
critical ones which require huge investment.
3.6.
Case Study on Thermal Power Plant
According to a study done on 500 MW thermal power station, following projects are found
out for energy saving opportunity [8]. The energy saving potential achieved by implementing
these activities is also described in Table 3-6. The serial numbers in Table 3-6 is to be read
against the respective activity which is mentioned below.
1.
Installation of fabric expansion compensator at primary, secondary air duct and furnace
wind box duct
2.
Modification in Hopper and Shaft Support Insulator
3.
Replacement of Cartridge of Boiler Feed Pump
4.
Increased Reliability & Availability of CW Debris Filter System
5.
Condenser tube cleaning
6.
Reduction in steam consumption by fuel switching
7.
Optimized Ball Loading In Coal Mill

Table 3-6 : Energy Efficiency Investment in a typical
500 MW Thermal Power plant
Sl.
No.
1
2
3
4
5
6
7
3.7.
Saving
(`) Lakh per Year
112.12
30
208
33.6
7.43
33
29.7
Investment
(`) Lakh
12.34
Nil
40
50
3.15
Nil
Nil
Pay Back
(months)
2
Immediate
3
18
5
Immediate
Immediate
Conclusion
India primarily depends upon thermal power plants for electricity generation and among those
most of the units are sub-critical. The efficiency of many such sub-critical power plants are
even below 20% and the reforms in the sector have already started. The Indian power sector is
in its phase to adapt to super critical power plant technology with more than 7 GW of installed
capacity currently. The refurbishment of old power plants (more than 30 years) requires an
envisaged potential of more than half a lakh crorerupees. There are still many opportunities
in the sector for improvement like cogeneration, IGCC, USC and A-USC. Energy Efficiency
installations (refurbishment) of the power plant components like combustors, boilers, motors etc.
is another opportunity. By improving the efficiency of Thermal power plants from 30% to 35%,
` 8,450 Crore can be saved per annum with an investment of about ` 42,200 billion. The
renovation and modernisation of old sub-critical power plants is also necessary. All these will
lead to improving the overall efficiency in the power generation sector with huge potential
saving. To bring efficiency in thermal power generation in India, investment worth ` 58,500
25

crore has been estimated. It is also noteworthy that the power generation sector has to grow
at a rate of more than 6.5% to keep at par with the Planning Commissions vision of 9% GDP
growth rate.
3.8. Reference
26
1.
Executive Summary for the Month of July 2014, Central Electricity Authority, http://
www.cea.nic.in.
2.
Options for Energy Efficiency in India and Barriers to Their Adoption, Soma Bhattacharya
and Maureen L. Cropper, https://www.econ.umd.edu/
3.
CHP-Efficient energy for a new generation, ComAp, Oct 2013.
4.
Technology Roadmap, IEA, http://www.iea.org.
5.
Super Critical Technology, L&T Power, http://www.larsentoubro.com/
6.
Recent Advances in Ultra Super Critical Steam Turbine Technology, M. Boss, T. Gadoury,
S. Feenyand M. Montgomery, GE Energy, http://www.ge-energy.
7.
Advanced Ultra-Supercritical Power Plant (700 to 760oC) design for Indian coal, Babcok
and Wilcox, October 2012.
8.
Technical paper on major energy saving potential in thermal power plant & effective
implementation of EC Act 2001 in Power Sector, Energy manager Training.
Chapter
Steel & Iron Sector

4.1.
Introduction
Steel is vital input to the development of any modern economy and is considered to be the
backbone of human civilization. The level of per capita consumption of steel is treated as one
of the important indicators of socio-economic development and living standard of the people
in a country. All major industrial economies are characterized by the existence of a strong steel
industry and the growth of many of these economies has been largely shaped by the strength
of their steel industries in their initial stages of development. According to the World Steel
Association (WSA) publication, average per capita steel consumption globally was 225.2 kg as
on 2013 whereas India stood at 57.8 kg, lower than the smaller economies such as Venezuela
and Egypt [1]. The per capita steel consumption of few countries are given in Table 4-1.
Table 4-1 : Per Capita Steel consumption for various countries
Country
Per Capita Steel

Consumption at 2013 (kg)
China
515.1
US
300.2
Venezuela
93.3
Egypt
88.9
India
57.8
Global Average
225.2
Steel Production Methods

Steel production involves numerous processes, as shown in Figure 4-1, that can be laid out in
various combinations. In the Blast Furnace process, pig iron is produced using primarily iron
ore and coke. Thereafter it is turned into steel in a basic oxygen furnace. Due to the inclusion
of coke making and sintering operations, this route is highly energy intensive. Iron scraps are
also used for producing Steel. This is done in an Electric Arc Furnace. Due to the omission of
coke and iron making processes, this is less energy intensive. Another method is the Direct
Reduced Iron (DRI) which is based on iron ore and often scraps for the iron input. Energy
intensity of DRI production depends on the scrap size, fuel and ore characteristics. A typical
steel production process is shown at Figure 4-1 [2].
Steel & Iron Sector
27
Figure 4-1 : Steel Production Process
Steel Production in India

India is one of the largest steel producing countries in the world. It is believed that the iron
making in India started as early as 400 BC but the modern Indias Iron and steel Industry
has started with the establishment of Tata Iron and Steel (TISCO) way back in 1907. Driven
by the rising infrastructure growth in the Country, the steel production is expected to grow
exponentially. Basically in Iron and Steel Industries, thermal energy is used much more than
electrical energy. List of major steel producers in India is given in Table 4-2.
Table 4-2 : Major Indian Steel Producers
Sl. No. Company
Production million MTPA (2013)
Tata Iron and Steel Company (TISCO)
25.3
Steel Authority of India Limited (SAIL)
13.5
JSW Steel Limited
11.8
ESSAR
6.1
Jindal Steel and Power (JSP)
2.88
As of 2013, the crude steel production in India crossed 81 million tonnes per year. But due to
its large population, India stands far below the world average in per capita steel consumption.
A massive investment to the tune of 1 trillion dollars (approx. ` 60 lakh crore) had been
envisaged during the Twelfth five year plan in the steel sector.
4.2.
Indian Economy and Steel Industry
As of 2013 India became 4th largest crude steel producing country in the world staying
behind China, US and Japan, with a crude steel production of 81.2 MT [3]. This sector gained
a production growth rate of 4.8% during February 2013 - February 2014. It is envisaged
that the country becomes the 2nd on list by 2015-16. Now, Iron and Steel Industry in India
contributes around 2% of Gross Domestic Product (GDP). It is also to be noted that Indias
steel consumption grew only by 0.60% during 2013-14 [4].
28
Steel & Iron Sector

The approach paper of Indias 12th five year plan envisages a GDP growth of 9% per annum.
In the Most Likely growth scenario (9% GDP growth), the demand for steel works out to be
113.3 million tonnes by 2016 -17. Therefore, it is likely that in 12th Five Year Plan, demand
will grow at a considerably higher annual average rate of 10.3% as compared to around 8.1%
growth achieved during the last two decades (1991-92 to 2010-11). The implied growth in
Steel Consumption to achieve the envisaged GDP for India under different scenarios is given
in Table 4-3.
Table 4-3 : Growth VS Steel Sector Growth in India
Sl. No.
Scenario
Growth in GDP
Implied growth in Steel Consumption
8%
9.1%
II
8.5%
9.7%
III
9%
10.3%
IV
9.5%
10.8%
(Source: Ministry of Steel, November 2011)
Steel production is expected to reach 200 million tonne by 2020 as compared to 75 million
tonne in 2011-12. Being the fourth largest steel producer in the world, the envisaged target of
becoming 2nd (after China) requires enormous requirement for energy, basically thermal. The
manufacturing sector contributes 25% to the Indias annual GDP and hence augmentation
in steel production and growth in the GDP are interlinked. If the country has to achieve 300
MTPA of steel production in 2025, then the GDP ought to be at 9 to 9.5% (in 2025) [5].
4.3.
World Steel Production Data
According to World Steel Association (WSA), global steel production has increased by about
75% since 2000 and reached 1.49 billion tonnes of crude steel during 2011 [8]. In the same
period, iron produced in blast furnaces and using direct reduction processes increased by 88%
and 45%, reaching 1,080 and 64 million tons, respectively. Although there has been significant
increase in scrap use in steel-making, in 2011 a higher share of steel was produced from iron
derived from ore, than in 2000 (BF+DRI/steel ratios in 2000 and 2011 are 0.73 and 0.76,
respectively) [6]. Six largest producers of steel (China, Japan, United States, India, Russia and
South Korea) account for 73% of total world steel production in 2011 (Table 4-4).
Table 4-4 : Top Steel Producers
Name
Mt (2011)
Mt (2012)
China
683.3
716.5
Japan
107.6
107.2
United States
86.2
88.7
India
72.2
77.6
Russia
68.7
70.4
South Korea
68.5
69.1
Rest of the World
403.5
415.5
TOTAL
1490
1545
Steel & Iron Sector
29
4.4.
Energy Consumption
Iron and steel sector has one of the largest industrial user of energy, consuming 2.24 EJ in
2013, and the largest industrial source of CO2 emissions [6]. According to PAT 2012, specific
energy consumption for steel production in India varies from 0.0527 to 1.907 toe/tonne.
4.5.
There have been many proven technologies and practices developed over the period of time
that can significantly reduce the energy demand and CO2 generation in this sector. Some of
the major technologies and their estimated saving potential for different regions are presented
in Figure 4-2. [Source: IEA/OECD, 2009]
Figure 4-2 : Energy saving potential in 2006, based on best available technology
By the end of the first PAT cycle (2015), the energy savings of 1.486 million ton of oil equivalent/
year is expected to be achieved, which is around 22% of total national energy saving targets
assessed under PAT. The total saving envisaged by PAT can be assessed as follows.
Energy Reduction Target for Iron & Steel Sector by 2015
: 1.486 million toe
Coal Equivalent (@4500 kcal/tonne for coal)
: 3.3 million tonnes
Estimated Monetary saving @ ` 6000 per tonne coal
: ` 1,980 crore
The crude steel production during 2013 showed an annual growth of 5.8% against 2012 figures.
Production of iron and steel involves energy intensive processes. At present, the specific energy
consumption of large integrated Indian steel plants is considerably high against the international
norms. Indian steel plants have undertaken several energy efficiency improvement measures
to reduce overall manufacturing costs. The overall saving achieved by following international
standards is explained in Table 4-5.
30
Steel & Iron Sector

Table 4-5: Saving potential in Steel Sector
Sl. No.
Particular
Value
Average specific energy consumption

integrated steel plants in India
of
Average specific energy

International steel plants
of
Saving potential by comparing with international

1.5 Gcal/tonne
standards
Annual steel production in the country
81.2 million tonne @ Year

2013
Annual saving potential in terms of coal
27 million tonnes of coal @

4500 kcal/kg
Annual monetary saving @ `6000/tonne of

` 16,200 crore
coal
Investment potential @ 5 years payback
consumption
6.5 7.0 Gcal/tonne

4.55.5 Gcal/tonne
` 81,000 crore
A case study regarding the investment potential in the steel sector is described in the following
section. The case study proposes a payback period of 4 years in steel industry. Payback period
of 5 years is considered for the investment to take care of uncertainties.
4.6.
Case study on Energy Efficiency
Energy Efficient Investment in Iron and Steel sector can be in a vast and major recoveries are
from thermal energy. Two case studies carried out in steel industries are mentioned in the
following sub-sections.
Case Study - I
POWERGRID has carried out energy audit on many steel plants with a focus on energy efficiency.
From the audit, it has been discovered that immense energy saving potential is available not
only in primary steel making process but also in secondary steel making process. Major cost
effective measures in the secondary steel making process include waste heat recovery from
flue gases, scrap preheating, bottom stirring etc.
In a typical Steel Melting Shop with Electric Arc Furnace (EAF) with a capacity of 120 Tonnes,
electrical energy saving of about 109 million units (kWh) per annum can be achieved. Total
annual cost savings was found to be more than ` 65 crore. The energy saving potential from
cost effective energy efficiency measures is found to be about 10-15% of their final energy
consumption in large industries and even higher for small and medium sized steel industries.
Audit experience in various iron and steel industries has come up with many EE measures with
relatively modest investments and shorter payback period. However, to realize major energy
efficiency opportunities large investments are required (e.g. Coke dry quenching, Pulverized
coal injection in Blast Furnace etc.). Every plant is different and based on the unique situation,
the most favourable selection of an energy efficient investment is to be made after a detailed
cost benefit analysis.
Steel & Iron Sector
31

Energy efficiency measures in Iron and Steel industries
Many energy efficiency measures that can be applied in Iron and Steel industries which are
described below [7].
1.
Waste heat recovery from sinter bed
2.
Improvement of segregate charging of sintering materials
3.
Sensible heat recovery from main exhaust gas of sintering machine
4.
Coal Moisture control
5.
Automated combustion control of coke ovens
6.
Coke Dry Quenching replacing Wet Quenching
7.
Preheating through WHR (Waste Heat Recovery ) from Hot stoves of Blast Furnaces
8.
Top Pressure Recovery Turbine
9.
Pulverised Coal Injection avoiding the route of coke making
10. Waste Heat Recovery from sponge iron kilns

11. Hot charging and direct rolling mill
12. Descaling Pump conversion to plunger pump
13. Convection heating type het treatment furnace for wire road coil
14. Regenerative furnace
Total saving potential found out by adopting the above said energy saving measures in a
reference steel production plant of 1 million MTPA is given in Table 4-6. The serial numbers
are to be read against the ones given for adaptive measures as given in the above section. The
payback period can be reduced by incorporating PAT benefits.
Table 4-6 : Saving, Investment and Payback for a 1 million MTPA steel plant
32
Sl. No.
Saving ` (crore)
Investment ` (crore)
Pay Back (months)
3.36
13.44
48
3.48
6.96
24
4.5
13.5
36
6.46
19.38
36
4.32
12.6
36
33.6
100
36
3.96
11.88
38
6.3
25.2
48
3.4
11.5
40
10
1.25
4.0
38
11
1.2
2.0
20
12
1.9
4.5
30
13
0.1
0.3
36
14
2.8
39
Steel & Iron Sector
4.7.
Conclusion
Indian steel industry is in its phase to become the second largest in the world in crude steel
production in near future. At the same time, the dependence on imported coking coal,
low production efficiency, inadequate infrastructure & technology and delays in regulatory
clearances & approvals are major hindrance to its growth. By improving efficiency of energy
intensive equipment and by adopting energy efficient technologies, the coal imports can be
reduced or the production can be increased for same imports. This also helps the sector to
grow at a faster rate along with envisaged GDP growth of the country. The sectors saving and
investment potential is also vast of the order of ` 81,000 crore for coming 5 years. The major
energy efficient investments brought out in this chapter has a payback period less than or
equal to 5 years.
4.8.
References
1.
Indias per capita steel use at 57.8 kg in 2013, The Economic Times, June 2014.
2.
Schematic of the three routes of steelmaking, Worldsteel, 2008.
3.
India remains worlds 4th largest steel producer in 2013, The Economic Times, Jan
2014.
4.
Global Commodities, Standard Bank, June 2014.
5.
Union steel secretary urges industry players to achieve target, Times of India, Feb
2014.
6.
Iron and Steel, Industrial Efficiency Technology Database.
7.
Technology Compendium on Energy Saving Opportunities, Iron and Steel, Shakti

Sustainable Energy Foundation, accessed on June, 2014.
Steel & Iron Sector
33
34
Steel & Iron Sector
Chapter
Cement Industry
5.1.
Introduction
Cement is the most vital raw material used in construction activity and it is one of the main
ingredients for the infrastructural development of the country. Geographical size and massive
population of the country makes cement, one of the most demanding products leaving behind
a bigger room for growth of cement Industry. According to Ministry of Commerce and Industry
[1], the Indian Cement Industry is now the second largest cement producer in the world, next
only to China. Indias share in the worlds cement production is around 6%.
5.2.
Indian Economy and Cement Industry
Indias cement manufacturing capacity has already reached 323 MT in the terminal year of the
11th Plan, surpassing the target of 298 MT fixed for the 5 year period up to March 31, 2012.
The cement consumption grew at a healthy rate of 10.5% from 2004-05 to 2009-10 [2].
The Working Group on Cement Industry constituted by the Planning Commission for the
12th Five-Year Plan period has projected a cement demand growth at the rate of 10.75% per
annum during the plan period at an expected 9% GDP growth rate.
Indias cement manufacturing capacity may go up to 479 million tonnes by the terminal year
of the 12th Plan, ending 2017 with a capacity utilization of 85%.
Based on the demand growth projection, the consumption of cement by the end of the 12th
five year plan would be between 366.9 million tonnes and 397.4 million tonnes assuming
growth rates of 9.75% to 10.75% during this Plan period [3]. This projected expansion calls for
huge investment, which is a challenging task.
5.3.
Growth trend of Cement production in recent years
The Indian cement industry gained considerable growth in the recent years. The indigenous
demand, total production and export of recent years are shown in and Figure 5-1 [1].
Figure 5-1 : Cement production, demand and export

Cement Industry
35

The demand breakup of the cement for different sectors like commercial, residential and
infrastructure etc. is shown in Figure 5-2 [4].
Figure 5-2 : Demand break up of cement by segments
Also, the demand forecast of the cement requirement for the following years is shown in
Figure 5-3 [5].
Figure 5-3 : DemandSupply
5.4.
Energy consumption by Cement Plants
For better operational practices and other aspects, few cement plants in India may be best
plants in the world. This industry presents a mixed picture with many new plants that employ
dry process technology and a few old wet process plants having wet process kilns.
The industrys average thermal energy consumption is 725 kCal/kg clinkers and average
electrical energy consumption is 82 kWh/tonne of cement [1], compared to the best thermal
and electrical energy consumption are 667 kCal/kg clinker and 68 kWh/tonne of cement
respectively [1] which is 8% more in thermal and 17% more in electricity consumption
compared with the best indicating huge scope for improvements.
5.5.
Major Energy Consuming Areas in Cement Industry
The major energy consuming areas of any cement industry is listed out in Table 5-1 with area
wise consumption [6].
36
Cement Industry

Table 5-1 : Cement industry-Area wise energy consumption
Electrical Energy
Energy Consuming areas
kWh/MT
Mines, crusher and stacking
1.5
Reclaimer, grinding and transport
18.0
Kiln feed, kiln and cooler
22.0
Coal mill
5.0
Cement grinding and transport
23.0
Packing plant
1.5
Lighting, Pumps and Services
4.0
Total
75.0
Thermal Energy
Energy consuming areas
per kCal/kg of clinker
Kiln
715
Waste Heat Recovery (WHR)

In cement plant the exit flue gases are basically from rotary kilns, pre-heater and calciners. The
temperatures normally observed for the same are [7].
Rotary kiln gases 300 350C incase of 4 stage pre-heater.
Rotary kiln gases 200 300C in case of 5 6 stage pre-heater.
Clinker cooler gases 200 300C
Cement plants in India emit huge quantity of waste gases which creates immense scope for
WHR installations & EE.
Figure 5-4 : Number of WHR systems installed in cement sector

Cement Industry
37

Moreover, the electricity consumption in a cement industry account for 25% of the operating
cost. The recovered heat can be used for preheating purpose or for generating electricity.
By implementing WHR systems, the energy consumption can be reduced by 10-15% [8].
Figure 5-4 shows the number of WHR installations for cement sector in different countries [8].
Few of the power generation methods that can be applied in the cement industry works on
the following cycles.
Steam Rankine cycle
Organic Rankine cycle
Kalina Cycle
WHR-based electric power generation offers several advantages:
Reduces purchased power consumption (or reduces reliance on fossil-fuel-based captive

power plants)
Mitigates the impact of future electric price increases
Enhances plant power reliability
Improves plant competitive position in the market
Figure 5-5 : Technical potential and investment in WHR deployment in cement industry
WHR power installations in the world totals more than 850. China leads in the number of
WHR installations, followed by India and Japan [8]. The realized and estimated potential for
WHR systems for various countries is given in Figure 5-5 [8].
38
Cement Industry
5.6.
Energy saving potential is estimated as shown in Table 5-2. The average energy consumption
of the cement plant and the consumption of the best performing plant have been taken for
the year 2009 [1].
Table 5-2 : Energy Saving Potential
Sl. No
Description
Units
Details
The best thermal energy consumption
kCal/kg
clinker
667
The best electrical energy consumption
kWh/tonne
of cement
68
Average thermal energy consumption of

Indian plants
kCal/kg
clinker
725
Average electrical energy consumption of

Indian plants
kWh/tonne
of cement
82
Thermal Energy that can be saved in Indian

plants, if the consumption is reduced to the
level of best performing plants
kCal/kg
clinker
58
Electrical Energy that can be saved if the

consumption is reduced to the level of best
performing plants
kWh/tonne
of cement
14
The supply forecast for the year 2014
million
tonnes
366
The thermal Energy saving potential per

year
kCal
2.123x1013
Equivalent coal savings (Taking Calorific

value 4500 kCal/kg)
Tonne
4.718x106
10
Monitory Savings taking ` 6000/tonne
` crore
2,831
11
The Electrical Energy saving potential for

year 2014
kWh
5.124x109
12
Monitory saving considering ` 5 per unit
` crore
2,562
13
Net Saving potential from cement industry

per annum
` crore
5,393
14
Required Investment @ 5 years pay back
` crore
26,964
Cement Industry
39
5.6.1. EE conservation measures in Cement industries

Some of the energy efficiency improvement measures that can be implemented for the better
performance of the cement plants are listed in the Table 5-3 [9].
Table 5-3 : Energy conservation measures in cement plants
Equipment
Kiln
Improvement Measures
Conversion of a wet or semi-wet process kiln to dry process kiln
Maintain kiln filling within the recommended norms
Installation of 6-stage pre-heater.
Conversion/replacement of the conventional cyclones by low pressure
drop cyclones
Installation of an additional cyclone in parallel to the existing top stage
cyclone(s) to reduce the pressure drop.
Pre-heater &
Pre-calciner
Gas Cooling
Clinker Cooler
Process fans
Installing high efficiency pre-heaters.

Replacement of conventional insulation bricks by block insulation.
Effective volume of the existing pre-calciner can be increased by:
Increasing height/diameter of the pre-calciner
Providing an extension duct
A balancing pre-calciner can be installed in series with the existing
one.
Air aided water spray system may be replaced by high pressure water
spray system.
Considering the heat requirement for grinding, the GCT (Gas
conditioning tower) may be shifted from after the preheater fan to
before the preheater fan.
Retrofitting of the static, high heat recuperation efficiency plates in the
initial 7/8 rows of the first grate
Retrofitting the high efficiency impeller
Increasing the impeller diameter by tipping
Installation of speed regulation devices in fixed speed fans
Mills
40
Removal of inlet dampers and installation of parallel fans

Installation of Voltage Regulator Module (VRM) in mill units.
High level Automation and expert control systems.
Optimization of fans, mill operating parameters, etc.,
Replacement of conventional low efficiency separators by new
generation high efficiency separators
Increasing the width of the existing tyre of the rollers.
Installation of pre-crusher/pre-grinder with ball mills
Installation of energy efficient grinding system like vertical roller mill,
roller press in finish mode etc.,
Using the product of roller press from other production unit as a feed
to the existing ball mill.
Cement Industry

Equipment
Improvement Measures
Material
Optimizing the consumption of compressed/pressure air
Transport System
Replacement of the pneumatic transport by the mechanical transport
system like belt conveyor, bucket elevators etc.
Modifying the transpor trout to minimize the travel distance
Environmental
Control
Replacement of multi-cyclones by ESP (Electro static precipitators)/bag

filters.
Installation of new fields in parallel/series with the existing ESP
Replacement of glass bags by membrane type bags
Installation of additional chambers with the existing bag filters
Minimizing the idle run of equipment
Replacing conventional drives with variable frequency drives in major
motors and fans
Prevention of wastages like water, lubricants, compressed air, etc.
Installation of optimization packages like
General
Kiln optimization system
Refractory management system
Integrated energy management system
5.6.2. Energy efficiency case studies in the cement plants

Some of the energy efficiency case studies conducted in the cement plants with their respective
annual savings, investments and payback periods are listed in Table 5-4 [9].
Table 5-4 : Energy Efficiency case studies
Sl.
No.
Description of Energy saving

measures
Investment
(`)
Annual
Savings (`)
Pay back
(months)
Installation of High Efficiency Dynamic

Separator for Raw Mill
30 crore
27 crore
13 m
Savings in Electrical Energy by increasing

dia. of Kiln String Cyclone
22 lakh
8.8 lakh
30 m
Optimisation of Crusher Output
54 lakh
22.4 lakh
29 m
Replacement of Existing Cyclones with

Low Pressure (LP) Cyclones
22 lakh
24 lakh
11 m
Usage of High Efficiency Crusher as

Pre-grinder before the Cement Mill
4 crore
1.5 crore
32 m
Cement Industry
41
5.7.
Conclusion
Indian cement industry is on the dynamic growth path in capacity, production, and financial
parameters. In order to attain a bright future, it needs focused attention to increase the energy
efficiency, which requires a huge investment. The detailed study of the cement industry reveals
a saving potential of about ` 5,400 crore per year as brought out in this study. The investment
requirement is envisaged to be about ` 27,000 crore. These energy efficiency improvements
not only save energy and reduce production cost but reduces CO2 emission also which is one
of the main concern for developing nations like India, aiming sustainable development.
42
5.8.
Reference
1.
Ninety fifth report on Performance of cement industry (Presented to the Rajya Sabha
on 24th February, 2011 and laid on the table of the Lok Sabha on 24th February,
2011).
2.
India`s cement production capacity, Construction Infrastructure Architect (CIA)

World Epic media Pvt Ltd.
3.
Indian Minerals Yearbook 2011 (Part- II), 50thEdition,Government of India, Ministry

of Mines, Indian Bureau of Mines.
4.
Assessment of competition in cement industry in India, A Research project report

Submitted to the competition commission of India by Sumit Pal Singh.
5.
Motilal Oswal Investor Conference, Kuldip Kaura, CEO& MD- ACC Limited, August
2012.
6.
Energy Efficiency Opportunities in Cement Industry Madhav Kamath and

G. Harikumar - Indian Energy and Resources Institute, Bangalore. Indias-cementproduction-capacity.
7.
Co-generation & success story in Indian cement industry, R.A. Sharma for master
consultancy & productivity Pvt. Ltd., accessed on 19 Sep 2014.
8.
Waste Heat Recovery for the cement sectorMarket and supplier analysis,
International Finance Corporation, June 2014.
9.
Plant specific energy efficiency modelling and analysis of the Indian cement industry
for robust policy implementation, S.S. Krishnan, A. Murali Ramakrishnan, V. Venkatesh,
P. Shyam Sunder and G. Ramakrishna - Center for Study of Science, Technology and
Policy (CSTEP) Bangalore.
10.
Chapter 12 - Cement Industry; Practical Guide to Energy Conservation, published

by Petroleum Conservation Research Association, Ministry of Petroleum and Natural
Gas, GoI.
Cement Industry
Chapter
Chemical Industry
6.1.
Introduction
With global sales of USD 3 trillion (` 180 trillion) and over 7million people employed, the
chemical industry is one of the largest in the world and also a major energy consumer. This
industry is one of the most diversified industrial sectors and includes basic chemicals and its
products, namely; petrochemicals, fertilizers, paints, gases, pharmaceuticals, dyes, etc. Broadly
chemical industry can be classified into two segments organic and inorganic chemicals. The
petrochemicals, drugs, cosmetics, agrochemicals, etc. comes under organic chemicals and the
inorganic chemicals comprises of alkalis, dyes and dyestuffs etc.
The International Council of Chemical Associations (ICCA) sets the standard for best practices
in these industries. The broad objective of ICCA is to minimize energy consumption along
with greenhouse gas emission both in production of chemicals and in its downstream value
chain [1].
Energy Consumption by Chemical Industry
At present, global energy demand for the chemical industry is 15 EJ per year (EJ/y) excluding
feedstock; including feedstock, the industry uses 42 EJ per year, which is approximately 10%
of the global energy demand or in other words 30% of worldwide industrial energy demand.
It is estimated that through improvement of catalyst and related processes, the energy intensity
can be reduced up to 20-40% by the year 2050. Quantitatively, through these improvements,
as much as 13 EJ and 1 GT of CO2-equivalent per year can be saved by 2050 versus a businessas-usual scenario [1].
Indian Chemical Industry
The Indian chemical industry forms a major part of the basic goods industry and provides
critical input to industrial and agricultural development. Thus it plays an important role in
the countrys economic development. In the last decade, the chemical industry has shown
remarkable improvement in agrochemicals and pharmaceuticals segments, and has become a
major exporter globally.
Indias growing per capita consumption and demand for agriculture-related chemicals offers
huge scope of growth for the sector in future. Competence in this energy intensive industry is
increasing; still the tapped potential is very limited.
6.2.
Indian Economy and Chemical Industry
The Indian Chemical industrys economy can be explained through understanding the revenue,
production and export status:
Indian Chemical Industry earned revenues in the range of US $136 billion (` 8160
Chemical Industry
43

billion) in 2013 [2]. As per the 12th five year plan, the chemical industry contributed
to 7% of the Indian GDP and 3% of global chemicals. The chemical sector accounts
for about 14% in overall index of industrial production. Figure 6-1 shows the growth
targets of various chemical industries.
Indian Chemical Industry is the second largest producer in Asia, in terms of volume in
2013. Total chemical production in FY 13 was 8,402 million tonne (MT) [3].
Chemicals constituted 5.2% of Indias total exports in FY 13. Total exports of chemicals
grew from US$ 3.5 billion (` 210 billion) in FY 03 to US$ 15.5 billion (` 930 billion)
in FY 13, a compound annual growth rate (CAGR) of 16.2% [3]. Share of the chemical
industry in the national exports is around 11%.
Figure 6-1: 12th five year plan growth targets
In present chapter, the introduction, production method, energy consumption, investment, and
energy efficiency based investment about three (3) of the major Chemical industry, namely;
Chlor-Alkali, Fertilizer and Petrochemical are outlined.
6.3.
Chlor-Alkali Industry
The Chlor-alkali industry is the oldest and largest segment of the inorganic chemical industry,
which consists of three inorganic chemicals: Caustic soda (NaOH), Chlorine and Soda ash
(Na2CO3). The demand for Caustic soda &Soda ash has increased significantly registering a
CAGR of 5.6% and 4.7% respectively, over the past five years [4].
India produces around 2.4 MTPA of Caustic soda and 2.7 MTPA of Soda ash. The major
consumers in India for Caustic soda are Textile, Alumina, Pulp and Paper, soaps and detergents
all together constituting close to around 50%. In this industry, the expenditure towards energy
consumption is almost 50-65% of the total production cost. The plant capacities are normally
around 150 tonnes per day (TPD) in India, as compared to 500 TPD plants in developed
countries [5].
Caustic soda and Chlorine are produced simultaneously whereas Soda ash is produced in
a separate process. The industry contributes to almost 74% of the chemical production in
India.
44
Chemical Industry

The Chlor-alkali sector can be divided into three (3) main sectors based on the process.
1.
Membrane based
2.
Diaphragm based
3.
Mercury based
Presently 94% of the Chlor-alkali units are running on the State-of-the-Art energy efficient
membrane cell technology.
Energy Consumption
The Chlor-alkali manufacturing process mostly runs on the electrical energy and a minor
amount of thermal energy is used for increasing concentration of cell liquor. Out of total
electrical energy consumption, 85-90% of the power consumption is for electrolysis and the
remaining for running the equipment (auxiliary power). A comparison of available production
techniques are given below:
For production of Caustic soda, the Membrane cell technology consumes almost 2/3rd
energy (2400-2500 kWh/tonne) as compared to conventional mercury cell technology
(3200 kWh/tonne) [5].
The mercury cell based technology does not need any thermal energy. Whereas, the
diaphragm process results in caustic soda with much lower concentration of around 10%
which demand more thermal energy, highest among the three.
Therefore, in Chlor-Alkali sector, the focus on energy conservation and Performance
Measurement and Verification (M&V) protocol is necessary mainly in electrolysis process.
In this direction, BEE has identified 22 designated consumers (DCs) from Chlor-alkali industry.
In the base line period of 2007-10, these DCs had a total energy consumption of 0.88 million
toe. The identified DCs have been mandated to reduce their total energy consumption by
0.054 million toe which is around 0.81% of the total national energy saving target under PAT
cycle-I (2012-15). The identified 22 DCs is found to have specific energy consumption ranging
from 0.262 to 0.997 toe/tonne.
As mentioned above, the specific energy consumption (SEC) of all the 22 DCs in the sector
varies from 0.262 to 0.997 toe/tonne through energy efficiency. All 21 DCs energy consumption
will come down to the SEC of 0.262 (lowest in group), it will result in considerable energy
saving. An estimation of energy saving potential is given in Table 6-1.
Table 6-1 : Energy saving in Chlor alkali industry
Sl. No.
Particular
Value
No. of identified DCs in PAT in Chemical Sector
22
Energy Saving proposed in the sectors
10%
Total Energy Saving achieved
88558
toe
or
0.088 million toe
Equivalent kWh (Considering Electrical energy Equivalent)
1.02 billion units
Monetary Saving (@ ` 5 per unit)
` 510 crore
Investment (@ 5 Years pay back)
` 2,550 crore
Chemical Industry
45

Energy Efficiency Investment
A case study on energy efficiency based investment was carried out on two of the 22 DCs and
potential savings in these units had been found out. Both the units were of 56100 TPY caustic
types [6]. The data are shown in Table 6-2 and Table 6-3.
Table 6-2 : Energy Saving Potential for Unit 1
Saving Potential % of Total Saving
(Lakh units/year)
Potential
Energy Saving Project

Modifications in Liquid Chlorine transfer Line
0.7
3.20
Introduction of surface condenser in fusion plant
9.7
44.43
Bypass line in brine unit
3.9
17.86
Avoiding venting of air from agitation blower
0.96
4.39
Recovery of waste heat from the fusion plant exhaust

gas (using VAM)
6.57
30.09
Total
21.83
100
Modifications in brine recovery system
It is evident from the table that through introduction of surface condenser in fusion plant
almost 45% energy can be saved.
Table 6-3 : Energy Saving potential for Unit 2
Annual Savings
Electrical (GWh)
Fuel (kL)
Installation of VFD for Raw Water Pump
0.82
Down Sizing of Process water pumps
0.4752
Downsizing of Filtered Brine Pumps
0.0433
Downsizing of Sulphuric Acid Circulation Pump
0.0174
Replacement of motor with EE motor class
0.0065
Installation of VFD to Annolyte pumps
0.04
Using waste steam
384
The continuous fusion plant cooling water pump
0.0108
impeller size reducing
Energy Saving Project
Transformer load shifting

Installation of VFD for Filtered brine pump
Installation of VFD for Clarified Brine Pump
Installation of capacitor bank/harmonic filter
0.14
0.084
0.0173
0.0634
Replacement of HPSV lamps with Metal Halide

Lamps
Replacement of old transformer with new one
0.0121
0.0475
1.78 GWh or
17.8 lakh units
384
Total
46
Chemical Industry

From the data, it can be inferred that there are many areas that are to be yet tapped for energy
efficiency in the Chlor-alkali industries. Most of the energy saving potential in the Chlor-alkali
industry is in the form of electrical energy.
6.4.
Fertilizer Industry
Fertilizer industry gives an essential input to agriculture for meeting the food grain requirements
of the country. Fertilizers is mainly composed of three nutrients: nitrogen (N), phosphorous
(P) and potassium (K). These nutrients are used in single or combined form. Overall, it is
a substance, which is organic or inorganic, natural or artificial, supplies chemical elements
required for plant growth.
Fertilizer Industry in India
India ranks third in the world, after China and USA, in the production and consumption of
fertilizers. Nitrogenous, Phosphatic, Potassic, and complex fertilizers are the most widely used
fertilizers in India. The fertilizer demand in India is expected to grow at 6% CAGR from FY11
to reach 78 Mn tonnes in FY16, higher than the global growth rate of 2% during the same
period [7]. The demand forecast for fertilizer in India is given in Table 6-4 [8].
Table 6-4 : All India Demand forecast for the fertilizer products during the 12th plan
Year
Urea
DAP
NP/NPKs
SSP
MOP
Lakh tonne
2012-13
303.47
115.59
102.91
42.88
41.95
2013-14
311.92
117.84
105.77
46.82
43.43
2014-15
320.29
120.02
108.61
50.91
44.92
2015-16
328.58
122.12
111.42
55.13
46.43
2016-17
336.77
124.13
114.20
59.48
47.93
DAP: Diammonium Phosphate

NPK: Nitrogen Phosphorous Pottassium
SSP: Single Super Phosphate

MOP: Muriate of Potash

As per BEE, under PAT Cycle 1, 29 DCs has been identified under Fertilizer industry with a total
energy consumption of 8.2 million toe per year. BEE has also mandated these DCs to reduce
their energy consumption by 0.478 million toe by 2015. Energy saving potential envisaged in
the sector is given in Table 6-5.
Table 6-5 : Energy saving potential in fertilizer industry
Sl. No.
Particular
Value
Energy saving by 29 DCs
0.478 million toe
Equivalent electrical energy
5.55 billion kWh
Monetary equivalent (@ ` 5/kWh)
` 2,775 crore
Investment @ 5 years pay back
` 13,875 crore
Chemical Industry
47

Energy Efficiency Improvement
Energy efficiency in fertilizer Industry can be improved in three different phases, namely;
steam reforming phase, CO2 removal phase and ammonia synthesis phase [9].
Steam reforming phase: maximum energy usage and loss happens in this phase.
Available methods to reduce losses in the primary reformer are: installing a pre-reformer,
shifting part of the primary reformer to the secondary with installation of a purge gas
recovery unit, and upgrading the catalyst to reduce the steam/carbon ratio. Through this,
it is possible to reduce energy losses by 3-5 GJ/t of NH3.
CO2 removal phase: The most energy intensive process is removal of CO2 from the
synthesis gas stream by scrubbing with a solvent. Energy savings of the order of 1 GJ/t NH3
can be achieved by using advanced solvents, pressure swing absorption or membranes.
Ammonia synthesis phase: A lower ammonia synthesis pressure reduces the requirement
for compression power, but it also reduces production yield. Less ammonia can be
cooled out using cooling water so more refrigeration power is required. The recycling
power also increases, because larger gas volumes have to be handled. The overall energy
demand reduction depends on the situation and varies from 0-0.5 GJ/t NH3.
Amongst all, the production of nitrogenous fertilizers has the greatest impact on energy usage.
The major determining factors for energy efficiency in this industry are capacity utilization,
feedstock, plant age and technology.
6.5.
Petrochemical Industry
Petrochemical industry mainly covers chemicals like Ethylene, Propylene, Benzene and
Xylene. This industry plays a vital role in economy of following sectors, namely; agriculture,
infrastructure, healthcare, textiles and consumer durables. Petrochemical products cover the
entire spectrum of daily use items ranging from clothing, housing, construction, furniture,
automobiles, household items, toys, agriculture, horticulture, irrigation, and packaging to
medical appliances.
Indian Petrochemical Industry
The petrochemical industry in India has been one of the fastest growing industries in the
country. Since the beginning, the industry has shown an enviable rate of growth. Indian
petrochemical industry grew at a rate of ~11% in 2010-11. This is being led by strong growth
in polymers, fibre intermediates, synthetic fibre and elastomers [10]. Figure 6-2 [APIC, 2013]
gives the petrochemical demand during the last few years.
Figure 6-2: Aggregate Petrochemical Demand

48
Chemical Industry

IEA estimated the difference between current energy usage and energy consumption through
available best practice technology in the chemical industry. While acknowledging more data
and analysis is needed, the results are suggestive nonetheless. The gap between current energy
use and best practice technology is almost 15.8%, behind Germany (9.8%), Japan (10%),
and France (11%) [11].
The energy saving potential in this sector is projected to be at least 18 to 26%. Use of best
practice technology (BPT) could reduce fuel and steam energy requirements by 13%. Carbon
Credits Potentials are ranging from 54,000 to 300,000 tonnes of CO2/annum.
Figure 6-3 [12] gives an overall idea about energy saving potential in chemical and petrochemicals
at various countries. It could be noted that Indian chemical and petrochemical sector has less
energy saving opportunities as compared to US and China but still there is a value around
0.15 EJ which is considerable as compared to the net energy requirement in the country. The
energy efficiency investment potential in petrochemical industry is depicted in Table 6-6.
Figure 6-3 : Country wise Energy savings potential chemicals BPT based
Table 6-6 : Energy investment potential in chemical &petrochemical sector

Sl.
No.
Particular
Energy Saving potential from Figure 6 3
Equivalent kWh
Monetary saving @ ` 5/kWh
Chemical Industry
Value
0.15 EJ or 3.58 million toe
41.6 billion kWh
` 20,800 crore
` 1,04,000 crore
49
6.6.
Conclusion
With Asias growing contribution to the global chemical industry, India emerges as one of
the focus destinations for chemical companies worldwide. Chemical industry holds a good
percentage in Indias GDP share (approx. 7%). The Chlor alkali is one of the PAT industries
with mandated energy consumption reduction potential of 0.054 million toe which is only a
portion of what can be really achieved. The energy saving in the entire sector added together
is found to be at least 3.58 million toe with a total investment of more than ` 1 Lakh Crore.
50
6.7.
References
1.
Energy and GHG Reductions in the Chemical Industry via Catalytic Processes IEA,
Technology Roadmap.
2.
Frost & Sullivan, March 2014.
3.
Indian Chemicals Industry Analysis, Indian Brand Equity Foundation (IBEF), April
2014.
4.
Cleaner Production Opportunities Caustic Soda/ChlorEnvis Centre in Chlor-Alkali

Industries, Gujarat Cleaner Production Centre, http://gcpcenvis.nic.in.
5.
Survey of Energy Conservation in India 2014.
6.
M&V protocol for Chlor-Alkali Sector, PAT Scheme, Shakti Sustainable Energy
Foundation.
7.
Emerging India: Sustainable Growth of the Chemical Sector, INDIA CHEM 2012.
8.
Working Group Report on Fertilizer Industry for Twelfth Five-Year Plan, GoI, Accessed
on May 2014.
9.
Assessment of Energy Use and Energy Savings Potential in Selected Industrial Sectors
in India, Ernest Orlando Lawrence Berkeley National Laboratory, August, 2005.
10.
Indian Petrochemical Industry: Vital to Economic Growth, National Petrochemicals

Committee National Petrochemicals Committee Petrochemicals Committee of Ficci2012-13.
11.
Energy Efficiency for the Chemicals Industry, http://business.edf.org.
12.
Energy and GHG Reductions in the Chemical Industry via Catalytic Processes, IEA,
2013.
Chemical Industry
Chapter
Aluminium Industry
7.1.
Introduction
Aluminium is the third most abundant metallic element in the earths crust. Aluminium is a
material with a wide range of applications, e.g. vehicles, construction, packaging industry,
electronic production, household appliances, etc., and thus the demand for Aluminium from
these industrial sectors determines the overall demand for Aluminium. The Indian Aluminium
industry sector in the previous decade experienced remarkable success among the other
industries. Indian Aluminium industry is developing fast and the advancement in its production
technologies is boosting the growth even faster.
Figure 7-1 : Steps in Aluminium Production Indian Aluminium Industry
Although in India the consumption of Aluminium is fairly low, it has got a great demand
internationally in various sectors including aircraft manufacturing, automobile, electrical
manufacturing, utensils etc. Thus India has got the potential to come up as a leading player
in global market by using its surplus production to cater to the global demand. Aluminium
ore, most commonly bauxite is refined into aluminium oxide tri hydrate (alumina) and then
electrolytically reduced into metallic aluminium. Schematic of aluminium production method
is given in Figure 7-1.
Indian Aluminium Industry is one of the leading industries in the Indian economy. India has
the fifth largest bauxite reserves with deposits of about 3 billion tonnes or 5% of world deposits
[2]. At 10 million tonnes per annum production, which India should reach between 2020 &
2025 our bauxite reserves will last for 45-50 years [3].
Aluminium Industry
51

Per capita Aluminium consumption in India is just 1.3 kg per annum, compared to about
12 kg in China, 28 kg in the USA and 39 kg in Germany. The world average is 7.4 kg [3].
Apart from its potentially large, growing market India has ready availability of the three (03)
important key inputs to manufacture Aluminium: bauxite, power (coal) and manpower. Indian
Aluminium companies are amongst the lowest cost producers of the metal in the world, which
is a significant advantage, especially during times of cyclical downturns. Abundant bauxite
reserves and access to manpower give the domestic aluminium manufacturers a competitive
advantage.
Figure 7-2 : Aluminium consumption in India
Indias Aluminium consumption has grown at a CAGR of around 15% (see Figure 7-2) during
2002-11 which is almost double the world average of 8.1% [3]. Aluminium consumption
follows the GDP growth rates, hence these would also be growth drivers for the consumption
of Aluminium.
Bulk of Indias Aluminium demand is accounted by the electrical sector (39%), followed by
transport (18%), machinery (15%), and packaging (9%). By comparison, globally, the use of
Aluminium by major sectors stands at transport equipment (29%), building/construction (18%),
packaging (18%), electrical (9%), and machinery (8%). The major sectors contributing to Indian
Aluminium consumption are expected to witness tremendous growth in the coming decade
raising the per capita Aluminium consumption to about 10 kg per annum. Forecast of the
aluminium production in India up to 2030 is given in the Figure 7-3 [4].
Figure 7-3 : Aluminium Production in India

52
Aluminium Industry

The estimated share in aluminium consumption in the world by 2030 is given in Figure 7-4
[5]. Indias contribution is expected to be above 8%.
Figure 7-4 : World Aluminium Consumption Distribution by 2030 (Total: 73.7MT)
7.2.
Energy Consumption in Aluminium sector
The extraction of Aluminium mainly involves two steps i.e., purification of bauxite by Baeyers
process and electrolysis of alumina. Thermal Energy is consumed for refining bauxite ore into
alumina and electricity is used for smelting Aluminium from alumina. Energy consumption in
Indian plants is given in the Table 7-1 [4].
According to the study conducted in major Indian Aluminium production companies, the
energy consumption (both electrical and fuel) is found to be considerably higher than the best
available practices in the world.
The Best Available Technology (BAT) value is taken as 14,156 kWh/MT for total electricity
consumption and 19.6 GJ/MT for total fuel consumption, the total final energy consumption
is 70.6 GJ/MT[6]. In terms of total final energy consumption, the Indian average is 85 GJ/MT
against BAT of 70.6 GJ/MT. Thus average saving potential is about 20 % (Refer Table 7-1).
Table 7-1 : Benchmarking of final Energy Consumption
Company
Hindalco
Total electricity
consumption
kWh/MT Deviation
from BAT
in %
15,826
(+)13
Total fuel
consumption
GJ/MT Deviation
from BAT
in %
31.1
(+)58
Total final energy

consumption
GJ/MT Deviation
from BAT
in %
88.1
(+)25
Nalco
14,805
(+)5
27.6
(+)41
80.9
(+)15
Weighted
Average
15,388
29.6
51
85
20
(as per production)
Note: BAT: Total electricity: 14,156 kWh/MT, Total fuel: 19.6 GJ/MT.
Aluminium Industry
53

According to a study involving CII, the estimated total energy saving potential for all designated
consumers under PAT in aluminium is 23%. Electricity cost forms about 40% of the total
variable production cost in aluminium industry, and hence, energy efficiency continues to be
a major area of focus for the Indian Aluminium industry [7].
7.3.
According to Aluminium Association of India, the estimated production of Aluminium in the

country for FY13-14 is estimated to be about 3.9 million tonnes [8]. The energy saving potential
has been summarised in monetary terms in Table 7-2.
Table 7-2 : Saving potential in aluminium sector
Sl. No Description
Quantity
Estimated Production for FY14
3.9 million tonnes
Average Energy Consumption
85 GJ/Tonne
Total Energy Required
Estimated saving potential
Total saving potential
Equivalent coal saving (Taking Calorific value of 4500

kcal/tonne)
3.53 million tonne
Monitory saving potential for FY14 @ ` 6000/MT of

coal
` 2,112 crore
Required Investment @ 5 years pay back
` 10,500 crore
7.4.
331.5 million GJ
20%
66.3 million GJ
Energy Efficiency measures in Aluminium Industry
As mentioned earlier, there are mainly two (2) steps in the process of aluminium production.
They are alumina extraction from the bauxite ore and then the smelting of alumina to aluminium.
Many new technologies and energy savings measures are available in these industries and
some of them are listed below [9].
Alumina Plants
54
Adoption of tube digestion system in order to achieve improved digestion yield.
Adoption of Alcoa combination process for digestion and extraction of Trihydrate as well
as Monohydrate Alumina.
Adoption of direct filtration technology to separate the red mud directly downstream the
digestion under the same conditions of pressure and temperature.
Adoption of special disc filters for filtration of seed and product hydrate.
Adoption of multistage falling film evaporation systems in place of conventional single

stage system.
Automation and computerized process control systems for better operation of the
plants.
Aluminium Industry

Aluminium Smelters
Improvement in Alumina feeding system by adopting point feeding for proper distribution
of Alumina in the electrolyte.
Improvement on magnetic field characteristics through bus-bar network redesign for

stable metal pad.
Replacement of monolithic cathode lining with prebaked cathode blocks for better cell
life.
Some of the Energy Efficiency measures with pay back less than three (3) years with their
respective saving calculations are listed in Table 7-3.
Table 7-3: Energy Efficiency measures
Sl.
No.
Description of Energy saving

measures
Investment
(`)
Savings
(`)
Pay back
Installation of Immersion melting

Furnace
20 lakh
18 lakh
13 months
Installation of a small capacity variable

pump to maintain hydraulic pressure
2 lakh
2 lakh
1 year
Variable Voltage Variable Frequency

(VVVF) control of pumps and fume
blowers, and flow rate reduction of
by-pass circuit
40 lakh
20 lakh
2 years
Improvement of thermal efficiency for

rapid aluminium melting furnace
2.4 crore
1.6 crore
1.5 years
Regenerative burner type aluminium

melting furnace
28 lakh
20 lakh
1.5 years
Heat loss improvement of energy

saving type electric holding furnace
20 lakh
8 lakh
2.5 years
Improvement of operation of hot air

circulation fan for the Aluminium
annealing furnace
25 lakh
16 lakh
1.5 years
7.5.
Conclusion
Various studies reveal that Indian aluminium industries offer opportunity to improve specific
energy consumption. Huge energy saving potential is expected in Indian aluminium industry.
Comparing with the best available technologies, Indian aluminium industrial sector is having a
saving potential of about ` 2,100 crore per annum as brought out in this study. The investment
required to obtain that much saving is about ` 10,500 crore. The investment not only reduces
the energy consumption but also makes the products competitive in global market.
Aluminium Industry
55
56
7.6.
References
1.
http://www.emt-india.net/process/aluminium/Aluminium.html
2.
Scope and Potential of Indian Aluminium Industry: An Indepth Analysis, Sunildro, L.S
Akoijam, Institute of Management Studies (IMS), Kurukshetra University, Kurukshetra136119, Haryana, India.
3.
Indian Aluminium Industry on fast growth- Figures and Forecasts of a market with
great potential, Federation of Aluminium consumers in Europe (FACE).
4.
Challenge of the New Balance, Centre for Science and Environment. New Delhi.
5.
India Minerals and Metals Forum 2012 Ferrous & Non Ferrous, Indian Chamber of
Commerce- July 2012.
6.
Source for BAT: Ernst Worrell, Lynn Price, Maarten Neelis, Christina Galitsky, and
Zhou Nan 2008, World Best Practice Energy Intensity values for selected Industries.
7.
Stakeholder Analysis Report on Perform, Achieve and Trade (PAT), Scheme of

Government of India- CII.
8.
Statistics by Aluminium Association of India, http://www.aluminium-india.org/

Worldscenario.php.
9.
Chapter 14 - Aluminium Industry; Practical Guide to Energy Conservation, published

by Petroleum Conservation Research Association, Ministry of Petroleum and Natural
Gas, GoI.
Aluminium Industry
Chapter
Pulp and Paper Industries

8.1.
Introduction
The pulp and paper industry is one of the most energy-intensive sectors of the nation. The
major players in the industry are China, USA, Canada, Finland, Sweden, Germany, Japan and
Indonesia with almost 65% share of the global paper production.
Current Paper demand in the world is more than 402 million tonnes per annum which increased
by two fold in a span of last twenty (20) years. The forecasted demand by 2021 is 521 million
tonnes per annum [1]. Worldwide consumption of paper has risen by 400% in the past four (4)
decades leading to increase in deforestation, with 35% of harvested trees being used for paper
manufacturing. The global energy consumption share of pulp and paper industry (3%) during
2010 is shown in Figure 8-1 [Source: EIA, 2010].
Figure 8-1 : Energy Consumption Share of Paper and Pulp Industry Globally
Paper Manufacturing
The first paper mill in India was set up at Serampur, West Bengal in the year 1812 which was
based on the grass and jute as raw material. Currently the country has more than 850 nos.
paper mills manufacturing industrial grades, cultural grades and other specialty papers [2].
It is one of the 35 high priority industries of Government of India. Figure 8-2 represents the
processes involved in paper manufacturing [3].
57
Figure 8-2 : Paper Manufacturing Process
Cooking: The wood chips are heated in a solution of NaOH and Na2S under pressure during
which the lignin is removed. The system is then depressurized suddenly so that the chips fly
apart in to fibres.
Washing: Pulp is washed with water to remove chemicals from the fibre to prevent them from
interfering with the later processes. A sieve is used to remove knots and clumped-together
uncooked fibres from the pulp.
Bleaching: Initially the pulp is treated with NaOH in presence of O2 (NaOH helps removing
hydrogen from lignin whereas O2 breaks down the polymer). Then the pulp is treated with
CIO2 and after that with a mixture of NaOH, O2 and hydrogen peroxide. Final treatment is
again with ClO2 for removing the remaining lignin.
Drying: The bleached pulp undergoes beating and blending with raw materials (fillers, sizing
agents and chemicals). This then undergoes dewatering process up to about 20% (80% moisture
content). This forms the mother stock which then is rolled in to paper over cylinders bringing
down the moisture content to (50-60%). There after the paper is heated in a dryer to bring
down the water content. The volatile chemicals are also removed at the drying section. The
final process is coating calendaring.
At present, one-third of the Indian paper industrys raw material requirement is met by wood,
one-third by agro-based substances like sugar cane pulp and straw and the remaining through
waste paper. Hence the industry can be classified under three main categories.
1.
Wood Based
2.
Agro Based
3.
Waste Paper Based
As of 2011, majority of the paper is produced from waste paper followed by wood and agro
based. Presently Indian paper industry is among the top 12 in the world. Its annual output is
estimated to be around 13.5 million tonne with an annual turnover of more than ` 3,50,00
crore [4]. The paper industry in India is looking for state-of-the-Art technologies to reduce its
production cost and to upgrade the technology to meet the international standards. At the
same time, as compared to international capacities, India lags far behind.
58

As seen in Figure 8-3, the demand of paper is estimated to increase to almost more than
double in a span of 15 years [4]. This sounds the increased rate in cutting down of trees and
an increased energy demand which can adversely affect the countrys economy.
Figure 8-3 : Paper Demand in India
8.2.
Indian Paper Industry
Paper consumption is linked to the economic development and literacy of a country. India has
17% of the worlds population, but it consumes just 3% of paper globally. At the same time,
according to Indian Paper Manufacturers Association (IPMA), the industry accounts for 1.6% of
global paper and paper board production [5]. Major paper manufacturing companies in India
and their production capacity is given in Table 8-1.
Table 8-1 : Paper Production by Major Indian Companies (2012-13)
Sl.
No.
1
Company
Ballarpur Industries Limited (BILT)
Production
(Tonnes per year)
834050
ITC Limited - PSPD
590000
Tamil Nadu Newsprint & Papers Limited (TNPL)
371637
The West Coast paper Mills Limited
317808
JK Paper Limited
292582
The Andhra Pradesh paper Mills limited
258201
Century pulp and paper
242906
NR Agrawal Industries Limited
173072
Seshasayee paper & Boards Limited
169483
10
Trident Limited
152719
Despite the continued focus on digitization, Indias demand for paper is expected to rise
53% in the next six years (2014-2020). Though Indias per capita consumption is quite low
compared to global peers, things are looking up and demand is set to rise from the current
13 million tonnes per year to an estimated 20 million tonne by 2020. Indias per capita paper
consumption is 9 kg, against 22 kg in Indonesia, 25 kg in Malaysia and 42 kg in China whereas
59

the global average stands at 58 kg. In the last five (5) years, the Indian paper sector has invested
about ` 20,000 crore on capacity enhancement, technology upgrade and acquisitions [7].
Presently total turnover in the paper manufacturing sector has reached almost ` 40,000 crore
per annum.
Paper production is likely to grow at 8.4%, while the consumption of paper will grow at 9%.
Thus, new capacity additions are needed to cover the growth demand. As it stands, the gap
between production and consumption will be met through the import of pulp and paper from
other countries.
8.3.
Paper Recycling in India
A large number of paper recycling mills were incorporated in the country during late 1970s.
Since 1990 these mills are growing and expansion of capacities is a regular phenomenon. In
the early 70s, the share of waste paper used as raw material was only 7%, whereas now it
constitutes the major raw material base for paper industry with more than 47% share in total
production. The waste paper collection mechanism in India is explained in Table 8-2.
Table 8-2 : Waste Paper collection mechanism in India
Source
Collection from
Households
Annual scrap
contracts of
Printers, Publishers
and Converters
Scrap Contracts
with industries,
offices, libraries
Items Collected
Old News Papers and
magazines
Notebooks and Textbooks
Paper trimmings, print
rejects, overprint/misprint
sheets and other waste
Old corrugated cartons,
examination answers
sheets, and other waste,
old office and library
records
Total
Collected By
Quantity Collected
(MT/annum)
1.50
Weekend
hawkers
0.50
Contractors
0.25
Contractors
0.50
2.75
Waste paper in India is sourced indigenously as well as through imports. Due to inadequate
availability of indigenous waste paper, Indian mills rely heavily on imported waste paper to
meet the raw material demand which has increased from 5.1 million USD in 1980 to one
billion USD in 2011 [8]. Therefore, it is important to put in place suitable mechanisms that
result in increasing the effective recycling of post-consumer paper for manufacturing. Main
advantages emerging out of such systems are given below.
60
1.
Considerably reduce the environmental load on the eco-system
2.
Lowering of the import bill for waste paper
3.
Opportunity for income and employment generation
4.
Energy Saving due to decreased energy intensity for recycled paper


Table 8-3 shows the Recovery potential for waste paper in India from various fields of its use.
Table 8-3 : Recovery Potential for Waste Paper
Grades of Paper
Potential Source of
Generation
Generation/ Type of Waste

Consumption
(%)
Collection
Rate (%)
Writing/Printing
Copier Paper
Cream Wove
Offices
50
Business Establishment
40
Others
10
Printing House
20
Paper Traders
House Holds
20
Schools/Colleges
10
Offices
25
10
Others
10
Converting House
15
House Holds
20
Packaging Paper Offices
News Paper
Post Consumer
20
Pre Consumer
100
Post Consumer
20
Pre Consumer
100
Post Consumer
50
Pre Consumer
100
Post Consumer
30
50
Others
10
Publishing House
20
Distributors
House Holds
40
Offices
10
Business Establishments
15
Others
10
With paper and paper board demand growing at an average of 7.8% per annum, the industry
is expected to meet an annual requirement of 24 million tonnes by 2025 with an estimated
requirement of over 16 million tonnes of waste paper [8]. The share of various raw materials
in paper manufacturing is given in Figure 8-4.
61
Figure 8-4 : Raw Material share in paper manufacturing in India
If the waste paper recovery in India can be increased by 20%, then there will be a reduction in
import bill by USD 500 million (approx. ` 3,000 crore), a saving with marginal investment.
8.4.
Energy Consumption
Indian industries are always found to be energy intensive as compared to that of developed
countries. The same happens in case of Pulp and Paper industry. Table 8-4 summarizes the
performance of integrated wood based paper mills in India and abroad [9].
Table 8-4 : Performance Comparison of Integrated Wood Based
Paper Mills in India and Abroad
Input Norms
Mills in India (Wood Based)
Mills Abroad
Raw Materials, tonne
2 2.4
1.8 2
Energy, GJ/tonne
23 37
18 22
120 200
20 60
Chemical Recovery, %
85 95
95 98
Manpower, No.
14 20
5 -7
Technical Manpower, No.
Fiber Recovery, %
15
40
Water, m3
Typical energy consumption of an Indian paper mills is shown in Table 8-5 and is based on the
energy efficiency studies done by CII [9].
Table 8-5 : Typical Energy Consumption Details of Indian Paper Mills
Electrical Energy,
kWh/tonne
Thermal Energy
GJ/tonne
Integrated Wood/Bamboo based
1400 1500
27.3
Agro based Mill without Recovery
1200 1300
27.3
600 850
11.3
Type of Mill
Waste Paper Based
62

The energy intensity (EI) and fuel consumption in Indian Pulp and Paper industry over last
three decades is shown in Figure 8-5 [10].
Figure 8-5: Energy Intensity of Pulp and Paper Industry
As depicted in the Figure 8-5, Energy Intensity rose from 13.28 % in 1980-81 to 14.83 % in
1989-90. In 1999-2000, it has moved up to 16.91 %. The continuous rise in energy intensity
in the P&P industry is because of slow progress in the diffusion of energy-efficient technologies
due to government policies on energy prices for Indian industry (Bhattacharya and Cropper,
2010). The EI of the sector started to reduce from 2001-2002 and has reached 11.56% in
2009-10.
8.5.
The reduction in energy consumption and GHG emission can be credited to the adoption
of energy efficiency measures in the Indian pulp & paper industry and also for migrating to
advanced technologies in the process areas.
BEE has identified 31 Designated Consumers (DCs) from Pulp and Paper industry for which
the total energy consumption was found to be 2.09 million toe per year. Energy saving target
of 0.119 million toe was put forward to these companies during 2012-15 (first PAT cycle).
The energy consumption of an Indian Paper mill is ranging between 25.3 121 kJ/Ton of
paper. This translates to a GHG intensity range of 2.46 11.8 tonnes of CO2/tonne of paper
produced.
From Table 8-4 and Table 8-5, the thermal energy saving potential for wood based paper
manufacturing industries can be calculated as follows.
Table 8-6: Energy saving potential and investment for wood
based paper manufacturing process
Sl. No.
1
2
3
4
5
6
7
8
Particular
Average Annual Paper Production in India
Wood based production
Thermal Energy intensity in India
Thermal Energy intensity achievable
Annual thermal energy savings
Electrical energy equivalent
Annual monetary saving @ ` 5 per unit
Investment @ 5 years payback
Value
Approx. 12 million tonnes @ 2013
31%
27.3 GJ/tonne
20 GJ/tonne
0.648 million toe
7.5 billion kWh
` 3,750 crore
` 18,750 crore
63
An estimate showed that Recycling 1 short ton (907

kg) of paper saves 17 mature trees, 7 thousand US
gallons (26 m3) of water, 3 cubic yards (2.3 m3)
of landfill space, 2 barrels of oil (84 US gal or 320
litres), and 4,100 kilowatt-hours (15 GJ) of electricity
[11]. The electricity saving alone provides enough
energy to power a normal house in India for almost
8 months
Waste paper recycling method is

30-40% less energy intensive than
an integrated pulp & paper mill
and it has less effluent problem.
A wide range of boards, lower
grade writing papers and tissue
papers may be produced from
waste paper.
For every 1% increase in waste paper recovery, the total savings is estimated to be as below
[12].
0.2 million tonnes of raw material
0.16 million tonnes of coal
2750 megawatt of installed capacity
7.7 million m3 of water
8.6.
Energy Efficient Investment
The investment potential in Pulp and Paper sector can be brought out in many energy
intensive processes involved. There are opportunities for energy efficiency and incorporation
of renewable energy in a Paper mill. Based on a study on energy efficiency potential in Pulp
and Paper industry, following potential areas of energy saving has been put forward [9].
1.
Adoption of Oxy-Fuel firing technology in Lime kiln
2.
Installation of Shoe Press in Paper Machines.
3.
Installation of extended delignification system for cooking of wood
4.
Installation of centralized compressed air generation system.
5.
Installation of advanced process control systems
6.
Firing black liquor at high concentration
7.
Installation of high pressure cogeneration systems
8.
Installation of back pressure Turbine in place of PRDS (Steam Pressure Reducing and Desuperheating System)
9.
Optimizing energy consumption in pressure screens
10. Ultra Low intensity refining

11. Optimizing blow through steam consumption
12. Replace Vacuum Pumps With Vacuum Blowers
13. Bio-methanation from waste water discharge of agro based pulp mill
For a 200 TPD paper mill, the saving potential achieved by incorporating the efficiency
measures along with investment is briefed in Table 8-7. The serial no. represents the adaptive
64

measure followed as mentioned above, under the same subheading 8.6. With PAT benefits
added, the payback periods reduces considerably.
Table 8-7: Saving potential for a 200 TPD paper manufacturing
mill with energy efficient measures
Sl. No.
Saving in ` (crore)
Investment (` crore)
Pay Back (months)
0.45
80
0.99
10
121
11.2
40
43
0.78
0.25
0.908
0.15
12.77
31.1
29
5.296
60
136
0.54
0.54
12
0.3
0.5
20
10
0.51
1.5
36
11
0.71
2.1
36
12
1.57
1.26
10
13
4.71
1.26
8.7.
Conclusion
The Pulp and Paper industry is one of the main PAT industries in India. Even though the global
production share is less, this contributes highly in the economic development in the country.
The energy saving potential in the sector is vast that even a 200 TPD paper manufacturing
plant has a total EE potential of ` 40.7 crore per year with investment ` 151.6 crore giving an
overall payback period of 45 months (say 4 years). The total investment potential envisaged in
this sector is ` 18,750 crore over a period of 5 years.
8.8.
References
1.
Pulp and Paper Industry Raw Material Scenario - ITC Plantation A Case Study,
Kulkarni H. D., ITC ltd., March 2013.
2.
Scenario of Indian paper industry, Paperex India, Accessed on June 2014.
3.
Retrofit Approach for the Reduction of Water and Energy Consumption in Pulp and
Paper Production Processes, Patino J.M., Nunez M.P., Accessed on July 2014.
4.
http://www.paperex-india.com/paperscene.htm.
5.
Indian paper industry at a glance in 2013 2014,Indian Mirror.
6.
Top paper companies in India, Paper Mart, October 2013.
7.
Indias paper demand to rise 53% by 2020, Business Standard, April 19, 2014.
8.
Discussion Paper on Collection and Recycling of Waste Paper in India, dipp.nic.in.
65
66
9.
Technology Compendium on Energy saving Opportunities Pulp & Paper Sector,

SSEF, August 2013.
10.
Globalisation, Energy efficiency and Material Consumption in a Resource based

Industry: A Case of Indias Pulp and Paper Industry 1980-81 to 2009-10, Sandeep
Kumar Kujur.
11.
Sustainable Production Technologies, EDULINK, Accessed on July 2014.
12.
Waste Paper Collection Mechanism in India-Current Status and Future Requirement,

Tandon Rita, Dev N.S., Mathur R.M., Sep 2013.
Chapter
Textile Industry
9.1.
Introduction
Textile Industry provides one of the most basic needs of people and holds importance in
maintaining a sustained growth for improving the quality of life. The major sub-sectors that
comprise the textile sector include the organized Cotton/Man-Made Fibre Textiles Mill Industry,
the Man-Made Fibre/Filament Yarn Industry, the Wool and woollen Textiles Industry, the
Sericulture and Silk Textiles Industry, Handlooms, Handicrafts, the Jute Industry and Textiles
Exports. Textile manufacturing process is shown in Figure 9-1.
Figure 9-1 : Textile manufacturing process
The textile industry production process includes four main activities.

1.
Spinning: Yarn manufacturing
2.
Weaving and Knitting: Fabric manufacturing
3.
Wet Processing: Dyeing
4.
Stitching (sewing): Garment manufacturing
Cotton is the predominant fabric used in the Indian textile industry nearly 60% of overall
consumption in textiles and more than 75% in spinning mills is cotton. India is among the
Textile Industry
67

worlds largest producers of cotton with over 9 million hectares under cultivation, and an
annual crop of around 3 million tonnes [1]. Processes and technologies differ considerably
across factories. Composite mills cover complete sets of processes, from raw material to final
products.
9.2.
Indian Economy and Textile Industry
The textile sector is one the largest and oldest sectors in the Countrys economic portfolio
and amongst the most important in terms of output, investment and employment. The sector
employs nearly 35 million people and after agriculture, it is the second largest employer in
the country. Its importance is underlined by the fact that it accounts for approximately 4%
of the countrys Gross Domestic Product (GDP), 14% of industrial production, 9% of excise
collections, 18% of employment in the industrial sector and 11% of the countrys total export
earnings [2]. While textile exports are increasing, with India becoming the largest exporter
of cotton yarn and an important player in ready-made garments, the countrys international
textile trade constitutes a mere 3% of the total world trade in textiles.
Indias domestic textile and apparel industry is estimated to reach US$ 223 billion
(` 13,38,000 crore) by 2021. Apparel exports from India are expected to increase to US$
82 billion (` 4,92,000 crore) by 2021. Total cloth production in India is expected to grow
to US$ 112 billion (` 6,72,000 crore) by FY17 [3]. The report of Working Group constituted
by the Planning Commission on boosting Indias manufacturing exports during 12th Five
Year Plan (2012-17), envisages Indias exports of Textiles and Clothing at USD 64.11 billion
(` 3,84,660 crore) by the end of March 2017.
9.3.
Energy Consumption in textile Industry
Energy consumption in the textile industry has augmented with increased mechanization.
Energy consumption per unit of output is higher in modern textile units due to technological
development, which tends to replace manual labour by electric power. However technological
development also offers better productivity and quality that can overcome the efficiency
measure. Energy costs vary from 5% to 17% of total manufacturing costs according to the type
of process involved (ADB, 1998) [1]. Wet processes require high amounts of thermal energy,
inducing a higher share of energy cost. Figure 9-2 and Figure 9-3 represent the consumption
of electrical and thermal energy at various processes in textile industry. It can be noted that the
Figure 9-2 : Electricity consumption in Textile Industry

68
Textile Industry

electrical consumption is maximum for ring frame. Similarly, the thermal energy consumption
is maximum for bleaching and finishing process.
Figure 9-3 : Thermal Energy Consumption in Textile Industry
Though the textile industry requires both thermal and electrical energy for its production
process, about 80% of the energy requirement is met in the form of heat.
9.4.
Energy Efficiency Improvements
Electrical Energy
Energy efficiency measures in the electrical energy consumption area are listed below for the
textile industry and related areas:
Lighting
Due to its nature of operations in textile industry, the share of lighting in electricity consumption
is relatively high. As energy efficient lights are available, retrofit shall help in reduction with a
short payback period. Use of daylight in the mill area to the extent possible shall also reduce
electrical illumination requirements. As lighting load being 4% of the total electrical load, there
is possibility to reduce it through half retrofits.
Electric motor
The textile industry uses a number of relatively small electric motors. Adopting premier energy
efficiency motors and proper sizing of motors play a vital role in reduction of motor energy
consumption. The use of Variable Speed Drives (VFDs) wherever possible, also helps in
considerable electrical energy savings.
Electric heating
Electrical heating is far simpler in installation but is very expensive during operation. In the
textile industry, electric heating has largely been replaced by other methods (steam, gas heating,
or direct or indirect fired heating) for some time in order to achieve cost reductions. However,
since electric heating only requires a small initial investment as a result of convenience and
simplicity in equipment construction, it is still used for small capacity local heating purposes.
Therefore, it is desirable to conduct a comparative investigation into alternative heating
methods.
Textile Industry
69

Thermal Energy
Selection of fuel
Textile mills utilize coal and oil as fuel for their thermal energy requirements. Considering the
fuel prices other options like natural gases are also deployed in textile industries.
Selection of boiler
By and large, boilers used in the textile industry have experienced a change from Lancastriantype to water-tube boilers and boiler efficiency has improved from the conventional 60s to
70s of percentage points to as high as the 90s. Since high performance boilers are prone to a
rapid growth of scales inside their water tubes, feed water management becomes important.
Furthermore, these boilers have small amounts of retained water and high evaporation speeds
so that many aspects of their operation are automated, including feed water and combustion
management.
9.5.
Energy Saving Potential and Investment
With an increase in competition, most of the Textile process houses were forced to look at cost
reduction to survive. This can be read along with the fact that the net energy saving potential
in textile industry in India was about 23% [4]. The energy efficiency potential put forward by
PAT in various textile industries in Indian states is given in Table 9-1.
Table 9-1 : State wise energy saving potential in textile industries under PAT cycle 1
Sl.
No.
States
No. of Designated
Consumers (DCs)
Total Saving in toe
Telangana
304
Gujarat
11
16018
Haryana
1302
Karnataka
980
Madhya Pradesh
11561
Maharashtra
14
9015
Punjab
11
4796
Rajasthan
31
18471
Tamil Nadu
918
10
Himachal Pradesh
2648
The total saving in all the DCs adds up to 0.066 million toe.
9.6.
Energy Efficient Investment
The three (3) major factors for energy conservation in the textile industry are high capacity
utilization, fine tuning of equipment and technology up gradation.
Energy-efficiency Improvement Options Identified in the sector is explained below [5].
70
Textile Industry

Spinning Unit
Installation of automatic power factor controller with capacitors
Replacement of old energy-inefficient transformers with energy-efficient ones
Replacement of energy-inefficient motors with energy-efficient ones (for ring frames and
open end spinning machines)
Installation of photocells for speed frames;
Installation of synthetic flat belts for spinning ring frames;
Installation of energy-efficient lighting system (in place of conventional lighting)
Installation of energy-efficient fans for humidification plants
AC variable frequency drive for fans of humidification plants
Weaving Unit
Conversion of V-belt drives to flat belt drives;
Replacement of standard motors with energy-efficient ones
Installation of energy-efficient lighting system (in place of conventional lighting)
Installation of energy-efficient fans for humidification plants
Use of electronic ballast in place of conventional electromagnetic chokes.
Wet Processing Unit
Replace conventional rapid jet dyeing machine with low liquor ratio jet dyeing
machine
Replace steam dryer with RF dryer for dyeing yarn
Replace inefficient boilers with coal-fired water tube boiler with bag-filter
Replace ordinary submersible pump with an energy-efficient one
Additional fourth effect caustic recovery plant
Naphtha-based gas turbine with waste heat recovery boiler (cogeneration)
Monitoring for heat recovery potentials
Recovery and reuse of waste water in fabric dyeing
Table 9-2 gives few potential areas of energy efficiency in the textile sector along with the
potential investments. The values are formulated considering 2349 nos. of spinning plus
composite mills in India and taking data from report on assessment of energy use and energy
saving potential in selected sectors in India [5].
Textile Industry
71

Table 9-2 : Economic analysis of energy efficiency Improvement options
Energy Efficient improvement
Investment
options in Spinning/
in ` crore
Composite mills
Replacement of old energy- 493.164
inefficient transformers with energy
efficient ones
Energy
Savings
GWh
763.23
Energy
savings
(` crore)
381.615
Payback
period in
years
1.29
Replacement of energy-inefficient
motors with energy-efficient ones
for ring frames and open end
spinning machines
293.55
665.38
332.69
0.88
Installation of energy-efficient
lighting systemreplacement of
conventional copper ballast and
tube lights with LED
129.162
293.55
146.775
0.88
Installation of energy-efficient fans

for humidification plants (along
with energy-efficient motors of
appropriate capacity)
786.714
939.36
469.68
1.68
AC variable frequency drive for fans

of humidification plants
364.002
293.55
146.775
2.48
Total (Electrical)
2066.592
2955.07
1477.535
Replacement with efficient Boiler

(Thermal)
7397.46
--
1176.157
6.3
Table 9-3 shows the total energy efficiency potential in the spinning and composite mills in
India altogether. The investment data for the mill considered has been taken from report on
assessment of energy use and energy saving potential in selected sectors in India [5].
Table 9-3 : Energy Efficiency Investment in Indian Spinning and composite mills
Sl. No. Particular
72
Value
` 14.3 crore
Energy Efficiency Investment in a spinning mill [5]
No. of spinning mills in India
Energy Efficiency investment in spinning mill
Energy Efficiency Investment in a composite mill [5]
No. of composite mills in India
Energy Efficiency investment in composite mill (@ ` 60 per

USD)
` 39,700 crore
Total Investment
` 69,700 crore
2104
` 30,000 crore
` 162 crore
245
Textile Industry
9.7.
Solar energy potential assessment in Textile Industry
The textile industry requires both thermal and electrical energy for its operation. About 80%
of the energy requirement is met in the form of heat. The conventional energy replacement
potential in this sector has been estimated at a national level. The textile finishing requires
hot water at temperatures ranging from 40C to 110C at different stages of the process [6].
Table 9-4 shows the conventional energy replacement potential available with the adoption of
different solar thermal technologies for the various processes involved in the finishing industry
and this has been estimated at about 383 ktoe per annum [7].
Table 9-4: Conventional energy replacement potential through
solar applications in Textile Industry
Process
Temperature
required, oC
Recommended
solar technology
Energy
replacement
(ktoe/y)
Estimated
monetary savings
(` crore/annum)
Desizing
60-90
Evacuated Tube
Collector (ETC)
65
130.6
Scouring
90-110
ETC/concentrators
51
103.5
Bleaching
90-93
ETC
65
130.6
Mercering
60-70
FPC
18
36.1
Dyeing
70-90
FPC
108
216.6
Finishing
40-100
ETC
75
151.6
383
769.2
Total
Investment at 5 years payback
` 3,846 crore
In monetary terms this potential is equivalent to ` 769.2 crore/annum. Various solar technologies
were identified which can be used to meet these hot water requirements.
9.8.
Conclusion
Textile Industry being one of the worlds largest producers of cotton with over 9 million
hectares under cultivation, and an annual crop of around 3 million tonnes, there has been
immense potential for growth and so do the energy efficiency potential. The potential energy
saving areas includes motors, transformers, water heaters, lighting and humidifiers. Provision
of efficient heat recovery system and modernization of outdated technology shall help textile
industries to save considerable energy. The net investment potential in the sector is estimated
to be close to ` 73,500 crore.
Textile Industry
73
74
9.9.
References
1.
http://www.emt-india.net/process/textiles/pdf/TextileSector-India.pdf.
2.
Overview of the textile industry, Emerging SMEs of India, SMERA.
3.
Textile sector analysis report, Equitymaster, April 9, 2014.
4.
Energy Efficiency in textile Industry, ABB, Accessed on May 2014.
5.
Assessment of Energy Use and Energy Savings Potential in Selected Industrial Sectors
in India, Energy Analysis Department Environmental Energy Technologies Division,
August, 2005.
6.
Potential Unlimited, Energy Next, August 8, 2014.
7.
Identification of Industrial Sectors Promising for Commercialisation of Solar Energy,

PricewaterhouseCoopers, December 2011.
Textile Industry
Chapter
Commercial and Residential

Buildings
10
10.1. Introduction
Building sector includes residential and commercial buildings. Other part includes offices,
hospitals, hotels, retail outlets, educational institutions and public service buildings including
government offices. Along with Indian economy, the construction sector is also poised to grow
fast in the coming years but poses many challenges. It is notable that residential and commercial
sectors account for approx. 29% of the total electricity consumption. With rapid urbanization
in various booming economic sectors such as retail, hotel industry, business, information
technology, new buildings are being constructed. Significant amount of energy is required for
operational uses like air-conditioning, ventilation and lighting. Apart from this, lighting also
serves as a significant energy use. The growth of electricity consumption in commercial sector
in India during 2003-08 is given in Table 10-1 [1].
Figure 10-1: Growth of electricity consumption in commercial building in India
The potential for energy savings in new buildings is 40-50% if energy efficiency measures are
included in the design stage and green building norms (e.g., ECBC Energy conservation of
building Code, GRIHA norms by Indian Green building council IGBC, etc.,) are followed [2].
The building sector encompasses a diverse set of end use activities, which have different
energy use implications. Building designs and materials have a significant effect on the energy
consumed for a select set of end uses. Water heating and refrigeration each account for
significant shares of building energy use since they are in constant use. By contrast, cooking
Commercial and Residential Buildings
75

and small appliances (including home PCs and televisions) generally account for only small
percentages of building energy consumption, owing to their intermittent use.
10.2. Residential Sector

Introduction
Among building sectors, residential sector is growing at a rapid pace. Indian residential sector
has witnessed phenomenal growth over the last two decades, primarily due to population
increase, higher GDP growth, growing urbanization and industrialization, rise in income levels,
change in lifestyles and favourable public policies.
In 1961, the urban population of India was 78.9 million (18% of the total population). By
2001 it reached 377 million (27.8% of the total population) [3]. The largest increase in urban
population is expected in India, which will add about 497 million to its urban population over
the next four decade (2010 to 2050). The trend of urban population growth in India is shown
at Figure 10-2 and Figure 10-3 [4].
Figure 10-2: Urban and rural population
Figure 10-3: Rural and urban population

% in India
This urban growth, combined with rapid growth in the economy, has resulted in putting
enormous pressure on housing requirements, urban infrastructure and other services. This leads
to urban sprawl of residential units. Indias rate of urbanization of 2.4% per year, resulting in
more urban areas with bigger populations, as well as the expansion of existing urban areas.
Figure 10-4: Energy consumption in residential sector

76

Typical energy consumption distribution in residential building is shown in Figure 10-4.
Ceiling fans and lighting constitute major energy use (62%). By replacing existing CFLs and
incandescent with LEDs for the same lux level, approx. 40% of the energy consumption can
be reduced. Recommended light levels for various activities and zones along with comparison
of LED, CFL and incandescent lamps are given in Annexure-II. BEE has already implemented
star rating for ceiling fans and lighting to promote energy efficiency.
Energy consumption by appliances
Table 10-1 provides the stock, consumption per year and total consumption in TWh of the
most commonly used appliances in Indian household in 2008. The total consumption in all
households put together comes to about 152 TWh[5].
Table 10-1: Energy Consumption by Home Appliances
Appliance
Stock during 2008

(million)
kWh/year/
equipment
TWh/year
Fan
246
112
27.60
Incandescent bulb
302
80
24.22
Refrigerator
37
588
21.95
Television (TV)
99
175
17.27
Tube light
280
107
30.08
Air conditioner
1199
6.05
Room heater
555
5.00
Geyser
10
438
4.58
Air cooler
19
195
3.70
Stand-by power
3.06
Washing machine
15
185
2.77
CFL lamps
68
22
1.49
CD player
37
34
1.24
Computer
105
0.60
Set-top box
11
22
0.24
DVD player
29
0.03
Total
149.88
It is observed from the above Table 10-1 that a major part of the consumption comes from
fans, lighting (incandescent bulbs and tube lights), refrigerators, ACs, air coolers, electric water
heater, televisions (active mode) and stand-by power (incl. Set-Top-Boxes, DVD Players, TVs,
and Computers). As lifestyle changes fast, consumption on luxury goods such as Air Conditioners
and Refrigerators shall tend to increase in the days to come. The sales trend and growth rate
of the house hold equipment is given in Table 10-2 [5].
77

Table 10-2: Growth Rate and Household Share, Sales in Millions in 2008 and 2013
Particulars
Sales in 2008 Sales in 2013

(million)
(million)
Fan
Growth
rate
Stock in
million in
2008
Stock in
million in
2013
30
48.32
10%
246
396
Refrigerator
5.46
10.99
15%
37
74.4
TV set
16.50
31.08
14%
99
190.61
Tube light
186.00
196.46
1%
280
294.3
Air conditioner
2.63
8.01
25%
15.3
Geyser
1.70
3.12
13%
10
18.4
Air cooler
0.90
0.70
-5%
19
14.7
Set-top box
5.00
12.44
20%
11
27.4
Computer
7.80
19.41
20%
14.9
In every purchase there is cheapest and more energy consuming products as well as the
most energy efficient and expensive products. Table 10-3 shows the average consumption
of the cheapest and most efficient model available in the market. It can be noted from the
Table 10-2 that even 50% of the estimated investment would require more than a trillion
rupees. The cost of equipment considered in Table 10-3 is given in Annexure-III.
Table 10.3: Energy Savings from House Hold Appliances
Appliance
Cheapest Energy
Model
efficient
model
%
Savings
Working
hours in an
year
Stock in
2013
Savings
Potential
in 2013
Investment
hrs
days
million
TWh
` crore
Direct Cool
Refrigerator
350
179
49
74.4
21.43
74400
Fan
70
50
29
200
396
12.86
59400
Tube light T12

to T5 (80%)
49
28
43
365
235.44
10.83
14126
Tube light T12

to LED (20%)
49
18
63
365
58.86
7063
Window AC
1892
1406
26
120
15.3
5.3
45900
Air cooler
162
125
23
120
14.7
0.52
7350
Total
55
2,08,200
50% of Estimated Investment
27.5
1,04,100
Units
Some of the energy conservation saving tips for house hold is given in Annexure I.
78
10.3. Commercial Sector

Introduction
According to an interim report [6], the expansion of commercial space for the future, taking
into account the requirement and expansion profile, is shown in Table 10-4.
Table 10-4 : Projected area of commercial building in 2020 and 2030
Building Type
Area
(Million ft2)
2005
Growth
Percent
Area
(Million ft2)
2020
Area
(Million ft2)
2030
Commercial Office
Space
2900
9199
19861
Hospitality
730
10
3049
7909
Retail
950
3014
6506
Total
4580
15262
34276
The ECBC compliant buildings are estimated to be 20% to 30% more efficient than conventional
buildings. These buildings have many energy conservation measures such as the use of flash
blocks, wall and roof insulation, high performance glass, high SRI paints, vegetated roofs,
lighting power density (LPD)s less than 1 W/sq.ft, high performance chillers, economizers,
variable frequency drives and cooling towers.
Energy Efficiency measures for Commercial Sector
The major energy consuming equipment in commercial sector are lighting (25%), heating,
ventilation and air conditioning (HVAC) (55%) as illustrated in Figure 10-5.
It is estimated that new buildings can reduce energy consumption by incorporating appropriate
design innovation in the building envelope, heating, ventilation and air-conditioning (HVAC
(20-60%), lighting (20-50%), water heating (20-70%), refrigeration (20-70%) and electronics
and other (e.g., office equipment and intelligent controls, 10-20%) [7].
Figure 10-5 : Distribution of energy consumption in commercial sector

79

Building Codes and Standards [7]
Codes and Standards can significantly enable the reduction of CO2 emissions in the building
sector. India has many central and local authorities/bodies that help compile building codes
and standards that are applicable at the local and national levels. There are three (3) significant
codes/regulations that have been developed by national bodies:
The Bureau of Indian Standards, National Building Code (NBC), which covers all aspects
of building design and construction.
The Bureau of Energy Efficiency, Energy Conservation Building Codes (ECBC), which target
building energy efficiency
The Ministry of Environment and Forests, Environmental Impact Assessment (EIA) and
Clearance.
EIA was made mandatory in India under the Environmental Protection Act (1986) for 29
categories of large-scale developmental activities. Builders and developers must receive
environmental clearance from the Ministry of Environment and Forests before beginning
large construction projects. The requirement for building energy performance in the EIA is a
combination of related terms in NBC and ECBC.
Green rating of Buildings [7]
Indian Green Building Council (IGBC)
The Green Buildings movement in India started with the establishment of the Indian
Green Building Council (IGBC) in 2001.The IGBC offers training, technical assistance and
capacity building programmes related to green building. It promotes Leadership in Energy
and Environmental Design (LEED). LEED is an internationally accepted measurement system
designed for rating new and existing commercial, institutional and high-rise residential
buildings (design, construction & operation). To receive LEED certification, building projects
satisfy prerequisites and earn points to achieve different levels of certification. There are four
levels of certification with the thresholds as Certified: 40-49 points,Silver: 50-59 points, Gold:
60-79 points and Platinum: 80+ points.
LEED certification is recognized across the globe as the premier mark of achievement in green
building.A LEED-rated building consumes 30-50% less energy as compared to a conventional
building. Examples of Energy savings in some LEED-rated green buildings in India is given in
Table 10-5.
Table 10-5: Examples of Energy savings in LEED-rated green buildings in India
Building
CII-Godrej GBC,
Hyderabad
ITC Green Centre,
Gurgaon
Wipro, Gurgaon
Built-in
Area (m2)
1,858
15,794
16,258
Energy consumption
(kWh)
Conven- LEED-designed
tional
(Reduction, %)
350,000
130,000
(63%)
3,500,000
2,000,000
(45%)
4,800,000
3,100,000
(40%)
Rating
achieved
EPI (kWh/
m2)
Platinum
(56 points)
Platinum
(52 points)
Platinum
(57 Points)
70
127
191
EPI: Energy Performance Index

80

BEE star rating
The scheme is based on actual performance of the buildings in terms of energy performance
index (EPI, kWh/m2/year), in which air-conditioned and non- air-conditioned buildings (offices,
hotels, hospitals, retails malls and IT parks) are rated on 1 to 5 scale targeting three climate
zones (hot and dry, warm and humid, composite).BEE star rating for buildings and various
appliances is given in Annexure-V.
Many states have active Designated State Agencies (SDA) established under the Energy
Conservation Act, working with BEE to develop and implement state level energy efficiency
policies and programs. Some state governments have taken initiatives to legislate select
measures (e.g., use of solar water heating in residential and commercial buildings, or the use
of compact fluorescent lamps in public buildings), but these initiatives are too early and small
in number to be able to make a significant impact on the countrys overall energy efficiency.
10.4. Energy Saving Opportunities

According to report of State-wise Electricity Consumption & Conservation Potential in
India prepared by NPC (National Productivity Council) for BEE (Bureau of Energy Efficiency)
the state wise energy saving potential for commercial buildings with connected load more
than 500 kW is given in Table 10-6 [8]. The same data is represented in graphical form in
Figure 10-6.
Table 10-6 : State wise saving potential for commercial buildings
Sl. No.
Name of the state
Energy Saving Potential

Consumption
(MU)
988
Saving Potential
(MU)
197
Saving (`crore)
@ ` 5/kWh
Andhra Pradesh
Assam
20.4
4.1
2.05
Bihar
80.22
16
8.0
Chandigarh
180.6
36.12
18.06
Chhattisgarh
22.74
4.4
2.2
Dadar& Nagar Havel
1.16
0.23
0.115
Daman & Diu
3.2
0.64
0.32
Delhi
1255.55
251
125.5
Goa
108
21.6
10.8
10
Gujarat
190
38
19.0
11
Haryana
212
42.4
21.2
12
Himachal Pradesh
11.14
2.22
1.11
13
J&K
56.37
11.3
5.65
14
Jharkhand
96.93
19
9.5
15
Karnataka
1295.72
250
125
16
Kerala
506
102
51
98.5
81

Sl. No.
Name of the state
Energy Saving Potential
Saving (`crore)
@ ` 5/kWh
Consumption
(MU)
1700
Saving Potential
(MU)
340
0.375
0.08
0.04
93
20
10
53.4
10.7
5.35
17
Maharashtra
18
Manipur
19
Madhya Pradesh
20
Meghalaya
21
Mizoram
0.4786
0.1
0.05
22
Orissa
118.14
23.6
11.8
23
Pondicherry
132
26.4
13.2
24
Punjab
402
80
40
25
Rajasthan
361
72
36
26
Sikkim
7.114
1.42
0.71
27
Tamil Nadu
960
192
96
28
Tripura
2.28
0.46
0.23
29
Uttar Pradesh
610
122
61
30
Uttrakhand
51
10
31
West Bengal
403.66
80
40
9922.4776
1974.77
987.385
Total
170
Investment for a Payback of 5 years: ` 4,937crore
Figure 10-6 : State-wise savings potential for commercial buildings

82
10.5. Investment Potential in Residential and Commercial

Buildings
The investment in residential sector is huge since it basically involves replacement of the old
high energy consuming equipment with more efficient ones (high star rated). This basically
involves tube lights, lamps, ACs, TVs, Refrigerators, Fan and Air Coolers.
Table 10-7 : Energy Efficiency Investment in commercial & residential sector
Sl. No.
Particular
Value (` crore)
Investment in Residential Sector
1,06,300
Investment in Commercial sector
4,900
Total Investment
1,11,200
10.6. Projected future trend of electricity consumption in building

As already mentioned above, residential and commercial sectors account for 29% of the total
electricity consumption and is rising at a rate of 8% annually. Figure 10-7 given below highlights
the projected growth in the residential, commercial, hospitality and retail sectors.
Figure 10-7 : Future Trend of Building
10.7. Benefits of investment in Building Energy Efficiency

The need to increase generation capacity is unavoidable. To increase supply, governments in
often have to allocate funds to subsidize new generation capacity.Reducing demand by setting
up a low interest, easy payment energy efficiency revolving fund to incentivize consumers to
implement energy efficiency measures would be a more sustainable approach and repayments
could be based on energy savings. The main benefit from measures to improve energy efficiency
buildings is lower energy costs but there are usually other benefits to be considered too. Energy
efficiency measures are meant to reduce the amount of energy consumed while maintaining
or improving the quality of services provided in the building. Among the benefits likely to arise
from energy efficiency investments in buildings are
Reducing energy use for space heating or cooling and water heating
83
Reduced electricity use for lighting, office machinery and domestic type appliances
Lower maintenance requirements
Enhanced property value
Reducing power and energy requirements in buildings reduces the capital outlay required and
the running costs of these stand-by systems.
10.8. Energy efficiency measures for buildings

Energy efficiency measures for buildings are approaches through which the energy consumption
of a building can be reduced while maintaining or improving the level of comfort in the
building. [9] They can typically be categorized into:
Reducing heating demand

Heating demand can be reduced by limiting the exposed surface area of the building,
improving the insulation of the buildings fabric, reducing ventilation losses by selecting
efficient heating systems with effective controls.
Reducing cooling demand

Energy use in typical air-conditioned office buildings is approximately double that of
naturally ventilated office buildings. The need for air-conditioning or the size of the
systems installed can be reduced by controlling solar gains through glazing, reducing
internal heat gains, setting AC thermostat at 25-26oC instead of 23-24oC, making use
of thermal mass and night ventilation to reduce peak temperatures, providing effective
natural ventilation, reducing lighting loads and installing effective lighting controls.
Reducing the energy requirements for ventilation

The main use of energy for both mechanical cooling and for air conditioning is the fans
needed to circulate the air. Fan energy use for mechanical ventilation can be reduced by
designing the system to reduce pressure drops, selecting efficient fans, utilizing variable
speed fans to respond to varying load requirements, avoiding excessive air supply volumes,
etc.
Reducing energy use for lighting

This can be accomplished through making maximum use of daylight while avoiding
excessive solar heat gain, using task lighting to avoid excessive background luminance
level, installing energy-efficient luminaires with a high light output to energy ratio,
selecting lamps with a high luminous efficacy, providing effective controls like occupancy
sensors, smart light control for street lights that prevent lights being left on unnecessarily.
Reducing energy used for heating water

This can be achieved by:
o Installing time controls, and setting them to correctly reflect the hours of hot water
requirement;
o Replacing any damaged or missing insulation from all hot water pipe work and
cylinders, except where the pipes are providing useful heat into the space;
o Identifying a suitable hot water system.
The most significant reduction in energy use for hot water can be achieved by providing
solar water heating.
84
Energy Saving through Efficient HVAC system

Heating, ventilation and air-conditioning (HVAC) system design is particularly
important contributor of energy use in high occupancy spaces. The ventilation
system design basically involves the control tactics of air quality associated with
the outdoor air flow rates. There are varieties of available efficient ventilation
methods; consequently a comparative study among available methods, and their
impact on annual energy performances should be carried out before implementing
ventilation system. The energy efficiency potential can be quantified in following
three fronts: reduction in ventilation and transmission load, and increase in COP
of chillers. It is found that, through an appropriate HVAC system the year-round
energy saving can be substantial, i.e. up to 45% improvement.Through setting
of constant supply air temperature a huge potential of energy saving can be
generated, which is based on Fountain and Arens theory. This theory says that,
higher air speed can offset increased indoor temperature. Thus, setting up of
constant temperature is being compelled in many countries, some of them are: (i)
Hong Kong government issued guidelines to ensure room temperature is adjusted
to 25.5oC in summer, (ii) Chinese State Council issued guidelines to set the indoor
temperature to 26oC in cooling season, (iii) The Office of President in Taipei has
been set to 27oC in May 2008, (iv) The Republic of Korea recommended that room
temperature of a building should be in the range of 26 to 28oC in summer, (v) The
Ministry of the Environment of Japan is encouraging people to set the temperature
of air conditioners at offices to 28oC during summer time.Aforementioned details
hint that appropriate ventilation system design can substantially improve the
energy efficiency level in the building sectors.
Reducing electricity consumption of office equipment and appliances;

Most businesses rely on a range of office equipment in order to function. From the
basic essentials such as computers, monitors, printers, fax machines and photocopiers to
projectors, scanners and teleconference facilities, it is widely recognized that these items
have become integral to daily activity. Office equipment is the fastest growing energy
user in the business world, consuming 15% of the total electricity used in offices. This is
expected to rise to 30% by 2020. There are also associated costs that are often overlooked,
specifically those of increasing cooling requirements to overcome the additional heat this
equipment produces. As air conditioning and ventilation are major energy consumers
themselves, it makes good business sense to ensure they are only used when absolutely
necessary.
Typical measures to reduce consumption which also apply to household appliances are
o Switching off switching off or enabling power down mode reduces the energy
consumption and heat produced by equipment, which in turn lowers cooling costs
o Upgrading existing equipment some energy-efficient appliances (say 5 star rated)
more to buy but will recoup savings over the lifetime of the equipment
o Matching the equipment to the task bearing in mind current and predicted
requirements and purchase equipment that meet these
o Using higher star rated (energy labelling schemes ) appliances
85
Good housekeeping and people solutions

The level of achievable energy savings from office equipment is down to the everyday
management by staff. A simple energy conservation programme for an organization would
consider:
o Setting up an energy policy for the organization;
o Appointing an energy champion;
o Involving staff;
o Setting targets;
o Using notices and reminders;
o Conducting walk-rounds;
o Taking meter readings.
10.9. Conclusion
The residential and commercial sector consumes almost 29% of the total energy consumed
by all the sectors. The potential saving in this field is found to be vast even for the newly
constructed buildings if the energy efficiency measures are followed during the design stage
itself. The value is close to 25% even for the existing buildings. In the commercial sector
there are regulations in different states to impart energy efficiency implementations whereas
in residential sector, it has to be implemented from the consumer level, since most people opt
to purchase cheap equipment at a lower cost. The total investment in the sector is estimated
to be more than one lakh crore Rupees (`1,11,200 Crore).
10.10. References
86
1.
Annual report of 2009 10, Central Electricity Authority, September 2010.
2.
http://www.godrejandboyce.com/godrej/ElectricalsAndElectronics/Pdf/GBCS.pdf.
3.
Report of the working group on Effectively integrating industrial growth and environment
sustainability, Twelfth five year plan.
4.
United Nations Population Division / DESA, www.unpopoulation.org, Available at

http://esa.un.org/unpd/wup/Country-Profiles/country-profiles_1.htm).
5.
Energy saving potential in Indian households from improved appliance efficiency,

Prayas energy group, Pune, accessed on May 2014.
6.
Low carbon strategies for inclusive growth, Planning Commission, GoI, May 2011.
7.
Energy efficiency improvements in commercial buildings, GEF project document,

UNDP, 5th March 2011.
8.
State wise electricity consumption and conservation potential in India, BEE, Accessed
on May 2014
9.
Training Manual on Sustainable Energy Regulation and Policymaking for Africa available
at
http://www.unido.org/en/what-we-do/environment/energy-access-for-productiveuses/renewable-energy/selected-projects/training-package.html.
Chapter
11
11.1 Introduction
Street lighting is a key public service provided by public authorities which plays a crucial role
in the safety and security of public places. It also enhances the urban ambiance by boosting
the ambiance of streets by highlighting local landmarks and accentuating the atmosphere
during important public events. Significant amount of energy as well as financial resources
are wasted each year due to inefficient lighting. Energy efficient technologies and design can
reduce energy consumption by street lights dramatically (often by 25% to 60%) [1]. Such
savings can eliminate or reduce the need for new capacity additions and provide the capital
for alternative energy solutions in remote areas. These cost savings can also enable municipalities
to expand street lighting to additional areas, increasing access to lighting in low-income
and other underserved areas. In addition, improvements in quality of lighting and
expansion in services can improve safety conditions for both vehicular traffic and
pedestrians.
11.2 Indian scenario of street lighting

As per the 18th Electric Power Survey (EPS) of Central Electricity Authority (CEA), the estimated
energy consumption in Indian public lighting sector in the year 2012-13 is about 8478 million
kWh. The sector will grow at a CAGR of 7% during the 12th and 13th plan periods [2]. With
the development of LED and other energy efficient lighting technology, Street lighting sector
has a significant potential of energy efficiency and cost savings. BEE survey of 171 cities over 23
states showed that street lighting accounted for an average of 6.19% of revenue expenditure of
Urban Local Bodies (ULBs) i.e. `1,141.80 crore of the total revenue expenditure of `18,430.84
Crore [3].
Most Urban Local Bodies (ULBs)in India have either inadequate or poor street lighting and spend
very high on maintenance. ULBs in cities spend around 5-7% of their revenue expenditure on
street lighting while ULBs in towns and town Panchayats spend as much as 20% [3].
Projected Capital Expenditure during 12th five year Plan for street lighting is ` 1,925 crore for
the years from 2012-13 to 2016-17 [4].
11.3 BIS standards for street lighting

While designing or retrofitting street lights, it is important to first understand the illumination
requirement of the roads. Street lights in India is classified in the Indian Standard (BIS, 1981),
based on the traffic density of the road (Table 11-1). Based on the classification in the standards,
the street lights are designed to provide installation specifications for the street lighting system
[5].
87

Table 11-1: Classification of Street Lights (BIS, 1981)
Group
Description
A1
For very important routes with rapid and dense traffic where only considerations
are the safety and speed of the traffic and the comfort of drivers
A2
For main roads with considerable mixed traffic like main city streets, arterial roads,
and thoroughfares
B1
For secondary roads with considerable traffic such as local traffic routes, and
shopping streets
B2
For secondary roads with light traffic
For residential and unclassified roads not included in the previous groups
For bridges and flyovers
For towns and city centers
For roads with special requirements such as roads near airports, and railways
11.4 Energy Inefficiency Causes and Improvements

The savings from energy efficient street lightning are based on underlying technology and the
related reduction of energy use and maintenance costs, relative to older street lighting system.
The majority of costs stem from operation of the lighting system and not from investment
itself. The total cost of a typical street lighting installation over a period of 25 years is split
approximately as follows: 85% Operation and maintenance cost (Including supply) and 15%
Capital cost [8].
The main causes for inefficient street lighting system in municipalities can be pointed out as
below.
Inefficient equipment
Poor design
Poor power quality
Higher O&M costs
Lack of skilled manpower
Advancement in lighting technology has developed lot of energy efficient lighting equipment
like
Low loss chokes
High lumen tubes
Low wattage lamps for the same lux levels
Energy efficient luminaries
Smart Lighting control
Incorporation of these at the planning and design stage itself reduces operating cost of the
street lighting. In lieu of poor power quality conditions in the country, selection of lamps
which operate over wide range of parameters would reduce the O & M cost of the lamps
significantly. One of the most important technological developments that significantly help in
energy efficient street lighting system is LED technology.
88

LED technology and its advantages
Light-emitting diode (LED) technology is a fast-evolving technology with significant energysaving potential. Operating for an average of 10 hours per day, LEDs can have a life span of up
to 50,000 hours or more, and besides they provide a pleasant spectrum of light [1]. The lifetime
and performance depends on quality of the LED, system design, operating environment, and
other factors such as the lumen depreciation factor over a period of time. It consists of a
chip of semiconducting material treated to create a structure called a p-n (positive-negative)
junction. When an electron meets a hole, it falls into a lower energy level, and releases energy
in the form of a photon (light). The specific wavelength or colour emitted by the LED depends
on the materials used to make the diode. Figure 11-1 shows the working principle of LED.
The comparison of LED white light efficacy with respect to other lights is shown in Figure 11-2.
As per the graph LED is predicted to dominate in the coming years. Given in Table 11-2 is a
comparative study between conventional CFL and LED.
Figure 11-1 : LED schematic diagram
Figure 11-2 : White Light Efficacy (US DOE 3/09)

89

Table 11-2 : Comparison between LED and conventional CFL
Sl.
No.
Particular
Light Emitting Diodes

(LEDs)
Compact Fluorescents
(CFLs)
Life Span (average)
50,000 hours
8,000 hours
Watts of electricity used

(equivalent to 60 watt bulb)
6 - 8 watts
13-15 watts
Electrical energy used (30

Incandescent Bulbs per year
equivalent)
329 KWh/year
767 KWh/year
Annual Operating Cost (30

Incandescent Bulbs per year
equivalent)
` 32.85/year
` 76.65/year
Carbon Dioxide Emissions

(30 bulbs per year)
451 pounds/year
1051 pounds/year
Sensitivity to low
temperatures
None
Yes
Sensitive to humidity
No
Yes
On/off Cycling may decrease

the lifespan of the bulb.
No Effect
Yes - can reduce lifespan

drastically
Turns on instantly
Yes
No - takes time to warm

up
10
Durability
Very Durable - LEDs Not Very Durable - glass

can handle jarring and can break easily
bumping
11
Heat Emitted
3.4 btu/hour
30 btu/hour
12
Failure Modes
Not typical
Yes - may catch on fire,

smoke, or omit an odour
Lighting controls
It is not the mere light which helps in the energy saving but also the development of the
sophisticated light controllers. The following are the commonly available controls for lighting
system. It is estimated that up to 30% energy saving in street lights can be achieved without
even replacing existing fixtures by adopting Smart Street Light controls alone given below:
90
Infrared sensors
Motion sensors
Automatic timers
Dimmers
SCADA, GSM/GPRS based centralized control system for street light

11.5 Saving Potential and Investment

It is estimated that a city of one million inhabitants, which contrast the supply and maintenance
of LED street lighting to a third party, could generate energy savings of around 22%, which at
average rates would save such a city about EUR 2.3 million annually (` 180 crore) [4].
Use of efficient lighting infrastructure could help reduce the energy usage between 50-60%. For
instance, retrofitting the entire conventional streetlights with LEDs could result in annual savings
of 50% of total energy consumed in street lighting. In addition, the operational optimization
such as use of twilight switching controls, dimming and voltage optimization, could lead to an
additional energy savings of 15-20% [2].
According to USAID, 4300 Indian cities and towns with a cumulative street lighting connected
load of approximately 4.4 GW each year, consumes an estimated 21 billion kWh of energy,
emitting 15.56 million tons of CO2. It has a saving potential of 6.1 billion kWh and reduce 4.1
million tons of CO2 per year. Tapping these energy savings presents a huge business opportunity
for the lighting industry and a challenge for municipalities to become more energy efficient
[7].
The state wise number of street lights available and the investment required are presented in
Table 11-3. The growth has been predicted in the power consumption for street light by CEA
as shown in Figure 11-3. It is also given the percentage growth in the energy consumption by
street lights in comparison to the previous year. [8]. The total investment required is around
` 30,000 Crore and the savings would be around ` 1,530 Crore/year.
Table 11-3 : State-wise investment in energy saving street lighting
Sl.
No.
State
Power
consumption
(MU)
Savings
in Crore
rupees
@5.0/unit
1.84
Number of
street lights
7.36
Saving
potential
(MU)
@50%
3.68
17949
Investment
required
@20000/ light
(`crore)
35.88
1934.87
967.435
483.71
4718516
9437.04
Andaman
Nicobar
Andhra Pradesh
Arunachal
Pradesh
5.57
2.785
1.39
13583
27.16
Assam
6.05
3.025
1.51
14754
29.5
Bihar
23.9
11.95
5.97
58284
116.56
Chandigarh
14.72
7.36
3.68
35897
71.78
Chattisgarh
62.94
31.47
15.735
153490
306.98
Dadar & Nagar

Haveli
7.03
3.515
1.7575
17144
34.286
Daman & Diu
3.89
1.945
0.9725
9486
18.972
10
Delhi
253.94
126.97
63.485
619277
1238.54
11
Goa
34.87
17.435
8.71
85037
170.06
12
Gujarat
228.96
114.48
57.24
558359
1116.7
13
Haryana
55.96
27.98
13.99
136468
272.92
91

Sl.
No.
State
14
Himachal
Pradesh
12.61
Saving
potential
(MU)
@50%
6.305
15
J&K
11.42
5.71
2.855
27850
55.68
16
Jharkhand
89.1
44.55
22.27
217286
434.56
17
Karnataka
596.66
298.33
149.16
1455059
2910.118
18
Kerala
248.79
124.395
62.19
606718
1213.42
19
Lakshadeep
1.28
0.64
0.32
3122
6.24
20
Maharashtra
750.03
375.015
187.50
1829078
3658.14
21
Manipur
194.68
97.34
48.67
474761
949.52
22
Madhya Pradesh
3.31
1.655
0.8275
8072
16.14
23
Meghalaya
1.5
0.75
0.375
3658
7.3
24
Mizoram
10.55
5.275
2.6375
25728
51.44
25
Nagaland
4.42
2.21
1.105
10779
21.54
26
Orissa
67.12
33.56
16.78
163684
327.36
27
Pondicherry
16.17
8.085
4.0425
39433
78.86
28
Punjab
135.55
67.775
33.88
330562
661.12
29
Rajasthan
152.55
76.275
38.13
372020
744.02
30
Sikkim
1.94
0.97
0.485
4731
9.46
31
Tamil Nadu
443.1
221.55
110.77
1080576
2161.14
32
Tripura
12.14
6.07
3.035
29605
59.2
33
Uttar Pradesh
438.71
219.355
109.67
1069870
2139.74
34
Uttrakhand
45.23
22.615
11.3075
110301
220.6
35
West Bengal
254.38
127.19
63.59
620350
1240.68
6,131.3
3,065.65
1,532.8
1,49,52,238
29,904.15
Total
Power
consumption
(MU)
Savings
in Crore
rupees
@5.0/unit
3.152
Number of
street lights
30752
Investment
required
@20000/ light
(`crore)
61.5
Figure 11-3: Projected Growth in consumption of energy by Street Lights (million kWh) per annum
92
11.6 Conclusions
Adopting new and energy-efficient street lighttechnologies and by promoting the purchase of
new technological products (e.g. automatic controls fitted with earthing system), large energy
and cost savings can be achieved. Considering the variable power quality conditions in India,
selection of lamps that operate over a wide range of power parameters would significantly
reduce the replacement costs of the lamps by reducing its failure rate, although it may entail
a high initial investment. The efficiency of street lighting can also be significantly improved by
selecting appropriate optics for the luminaries as well as by ensuring proper mounting height,
overhang, and angle of tilt during the street light installation. These guidelines can enhance
visibility and thereby safety and can help reduce electricity consumption with its associated
costs. As estimated, the energy efficiency investment in the field of street light in India is found
to be more than ` 30,000 crore.
11.7 Reference
1.
Energy efficient street light Guidelines, USAID, India.
2.
EESL toolkit for streetlight energy efficiency, EESL, December 2013.
3.
Municipal DSM-The LED alternative, Hyperion Green Energy Pvt. Ltd.
4.
Daring. Doing, Tantia Constructions Limited, Annual report 2011-12, http://www.

tantiagroup.com/annual_report12.pdf.
5.
Indian Standard, code of practice for lightning of public thoroughfares, IS 1944-7: 1981
(R2003), Bureau of Indian Standards. 1981New Delhi, India.
6.
Energy Efficient Street Lighting, European PPP Expertise Centre. 2013.
7.
Innovative approaches to financing energy efficiency in Asia, USAID, August 2009.
8.
State-wise Electricity Consumption & Conservation Potential in India for BEE, National
Productivity Council, 2009.
93
94
Chapter
12
12.1. Introduction
The transport system links people and places as well as
helps in economic growth of the country. It provides
a new perspective to any business and makes things
available for people across the globe. In rural areas,
it plays a vital role for social, regional and economic
development.
The number of passengers in

all modes of transportation
sector is going to triplicate by
2030 as compare to 2006.
Indias transport system serves a land area of 3.3 million km2. India has the third largest road
network in the world comprising of 4.69 million km. It carries nearly 62.9% of the freight and
85.2% of passenger traffic as of 2009.
The length of various categories of roads in India is given in Table 12-1.
Table 12-1 : Length of different Road categories in India
Road type
Length in km
% of Total Length
National high ways
76818
1.64
State highways
163898
3.48
Other PWD roads
1005327
21.41
Rural roads
2749805
58.55
Urban roads
411840
8.78
Project roads
288539
6.14
46,96,227
100.00
Total
Source: Ministry of Road Transport & Highways (2012)
In developing country like India, adequate mobility and transportation is a very significant
factor. The transport service has undergone significant changes in the last few decades:
From 1951 to 2011, the number of vehicles in the country has grown at a rate of about
11%.
The public transport system in large and medium cities across the country has greatly
upgraded.
Between 1986 to 2008 freight moved on roads increased from 224 million tonnes to
1558.87 million tonnes and freight moved by rails increased from 255.4 to 768.72
million tonnes (RITES 2012) [1].
95

As on 2011;
Total number of registered vehicles was 141.87 million with total road network 4.69
million km.
Railway passenger traffic was 7651 million, and freight traffic 921.73 million tonnes
(MT).
Major Ports handled traffic of 570.03 million tonnes whereas total shipping tonnage
reached 10.1 million tonnes in 2010 [1].
12.2. Composition of motor vehicles in India

In India, two wheelers and passenger cars accounted for more than 4/5th of the motor vehicle
population in the country compared to their share of little over three-fifth in 1951. Twowheelers account for about 72%, followed by passenger cars at 13.3% and other vehicles at
8.4%. In contrast to personalised mode, the share of public buses in total registered vehicles
has declined from 11.1% in 1951 to a mere 1.3% in 2009 [2]. The growth in the number of
vehicle in India after independence is given in Figure 12-1 [4].
Figure 12-1 : Growth in number of vehicles after Independence
Traffic jams in the city cost Delhiites more than Rs 10 crore and the government
exchequer ` 1.5 crore per day, reveals a survey by Centre for Transforming
India (CTI). Similar study about Gurgaon by CTI, reveals a loss of about
Rs. 2 crore per day.
India is going to be the most populous country in the world, likely to overtake China by 2030.
This will lead to an explosive growth in the transportation sector. According to the studies
conducted, the freight and passenger share in the transport sector is going to multi-fold by
2030, shown in Figure 12-2 and Table 12-3 [3].
96

Table 12-2 : Freight share in transportation sector
Mode
Rail
Road
Coastal shipping
Air
Total
2006-07
Million Tonnes
% Share
728
34.60
1300
62.00
70
3.30
2
0.10
2100
100.00
2029-30
Million Tonnes
% Share
5300
30.24
12000
68.20
270
1.50
10
0.06
17580
100.00
Table 12-3 : Passenger share in transportation sector

Mode
Rail
Road
Coastal shipping
Air
Total
2006-07
Nos. (Bill)
% Share
6.20
15.70
33.00
84.05
0.001
0.05
0.09
0.20
39.291
100
2029-30
Nos. (Bill)
% Share
19.20
13.00
125.20
84.00
0.01
0.10
2.30
2.90
146.71
100
12.3. Energy consumption in transport sector

The transport sector is the second largest energy consumer after the industrial sector. The
consumption of petroleum products in the road sector is 34.48 million tonnes during 2009-10
and for railway traction the electricity consumption was about 13,621 GWh during 2010. As
per the American Trucking Association report, if idling of one bus can reduce for 1 hour per
day, then it saves 90 gallons of fuel per year.
Total consumption of High Speed Diesel (HSD) by railways was 2,523.35 million litres. The
shipping sector consumed 0.67 million tonnes of HSD and 0.004 million tonnes of light diesel
oil (LDO), and 0.56 million tonnes of fuel oil in 2009-10. Consumption of aviation fuel is 4.6
million tonnes in 2009-10 [1]. The sharing of petroleum products in various sectors is given in
Figure 12-2.
Figure 12-2: Sector wise consumption of petroleum products during 2011-12

97
As per the American Trucking Association report, if idling of one bus can
reduce for 1 hour per day, then it saves 90 gallons of fuel per year.
In 2020, the transportation sector is projected to account for 21% of total final energy use and
14% of primary energy use, versus 16% of total final energy use and 12% of primary energy use
in 2005. This sector is expected to grow rapidly, with a projected annual growth rate of 6.8%
for the period 2005 to 2020 [4]. Figure 12-3 shows the projected energy share by different
vehicle types on 2020.
Figure 12-3 : Energy use projection by mode and vehicle types, PJ
12.4. Energy saving measures in Transport sector

1.
Encourage blending of Ethanol with petrol.
2.
Extend electrification of Railways.
3.
Improve freight service by railways
4.
Promote urban mass transport.
5.
Improve fuel efficiency of Vehicles.
6.
Electric vehicles charged through renewables
7.
Encourage use of hybrid Vehicles.
8.
Use of Fuel Efficient tyres for the vehicles
9.
Electronic Toll collection system (ETC)
10. Eco-driving training for the drivers.

11. Setting up target mileage for each vehicle categories.
98
Hybrid-electric vehicles (HEVs) combine the benefits of gasoline engines

and electric motors and can be configured to obtain different objectives, such
as improved fuel economy, increased power, or additional auxiliary power for
electronic devices and power tools.
Few advanced technologies used by hybrids are
Regenerative Braking: The electric motor applies resistance to the drivetrain
causing the wheels to slow down. In return, the energy from the wheels turns
the motor, which functions as a generator, converting energy normally wasted
during coasting and braking into electricity, which is stored in a battery until
needed by the electric motor.
Electric Motor Drive/Assist: The electric motor provides additional power
to assist the engine in accelerating, passing, or hill climbing. This allows a
smaller, more efficient engine to be used. In some vehicles, the motor alone
provides power for low-speed driving conditions where internal combustion
engines are least efficient.
Automatic Start/Shutoff: Automatically shuts off the engine when the vehicle
comes to a stop and restarts it when the accelerator is pressed. This prevents
wasted energy from idling.
12.5. Electronic Toll Collection (ETC) System

For suggesting a unified technology for implementing Electronic Toll Collection (ETC) system
in Indian highways, Ministry of Road transport and highway constituted a Committee. The
committee studied all the ETC technologies, practiced in different parts of the world and
suggested a unified ETC technology which is based on passive RFID technology for India [5].
Towards energy efficiency measures, a comparison of such existing technologies in the world
is given in Table 12-4.
On Delhi-Mumbai highway there are 18 toll plazas and it used to take around 10 minutes
for the vehicles to pay the levy which results in a loss of at least three hours time during the
total journey. The proposed ETC system on Delhi-Mumbai highway, once fully functional, is
estimated to save around `1,200 crore worth fuel annually.
Table 12-4 : ETC Technologies around World
ETC Technology
Active microwave
5.8 GHz
Cost
About `2000 per
OBU About 5 lakh
per Reader
Passive Microwave `1000 for OBU

5.8 GHz
`2 lakh for Reader
Suppliers
In use
Comments
Limited
Yes
Japan
Due to higher
bandwidth and data
speed, supports many
ITS applications
Multiple
Yes
Europe
Very Simple OBU
99

ETC Technology
Cost
Suppliers
In use
Comments
Infrared ISOCALM
About `100 per Tag

About `2 lakh for
reader
Limited
Yes
(Austria
and
Malaysia)
Can be easily extended

to a contactless and
useful for other ITS
applications
Passive RFID
About `100 per Tag

About `2 lakh per
Reader
Multiple
Yes
(South
America,
Georgia,
US)
Allows tamper resistant

stickers Small, light,
very cheap, almost
unlimited life.
Active RFID
About `1000
per On Board
Unit(OBU)
Limited
Yes
Florida
On- board transmitter,

higher range, expensive
finite life as the battery
has to be replaced.
GNSS/CN
About `2 Lakh
per Reader About
`2000 per OBU
Limited
Yes
Germany
Too sophisticated due

to absence of Toll
plazas, enforcement
on violations is very
difficult in India
Electronic Toll Plaza

Electronic Toll Collection (ETC) service enables motorists to pay tolls electronically without
stopping at the toll plazas. To enable electronic payments at toll plazas, a prepaid Radio
Frequency Identification Device (RFID) tag is affixed on the windscreen of the vehicle.
As the vehicle crosses the toll plazas, the information is passed to the motorists prepaid
account created at the central clearing house set-up by the Bank and the applicable toll
amount is deducted and transferred to the concessionaires account electronically.
12.6. Traffic Light Synchronization & GPS Enabled Vehicles

In a metropolitan/municipal area, various traffic signals shall be synchronized in such a manner
that when a vehicle moves at predefined speed (say 40-50 kmph) chances of getting stuck at
red light is less. To achieve this all traffic lights in a given metropolitan/municipal area shall
have necessary infrastructure for traffic light synchronization.
For smooth flow of vehicle through various intersections, proper synchronization of traffic
signals on various intersections will play a great role. Global Positioning System (GPS)
technology incorporated with road mapping focused at traffic data collection and analysis of
traffic condition would certainly help in conserving fuel and travel time.
12.7. Comparison of Indian fuel Economy with that of Japan

Fuel Economy Targets of Japan
Japan was the first country to introduce fuel efficiency standards for vehicles in 2006 to reduce
fuel consumption and address global warming. Manufacturers are required to improve the fuel
economy until the target year 2015. Fuel economy target values by vehicle category and gross
vehicle weight is given in Table 12-5 [6].
100

Table 12-5 Fuel economy targets for vehicles
Class
1
2
3
4
5
6
7
8
9
10
11
Gross Vehicle Weight

(tonnes)
3.5 7.5 (Pay load 1.5 tonnes)
3.5 7.5 (Pay load 1.5 2 tonnes)
3.5 7.5 (Pay load 2 3 tonnes)
3.5 7.5Pay load > 3 tonnes)
7.5 8
8 10
10 12
12 14
14 16
16 20
>20
Target standard value

(km/litre)
10.83
10.35
9.51
8.12
7.24
6.52
6.00
5.69
4.97
4.15
4.04
Table 12-6 : Fuel economy targets for City Buses

Class
1
2
3
4
5

(tonnes)
6- 8
8 10
10 12
12 14
> 14

(km/litre)
6.97
6.30
5.77
5.14
4.23
Table 12-7 : Target standard values for buses, except city buses (Source: MLIT)
Class
1
2
3
4
5
6
7

(tonnes)
3.5 6
6-8
8 - 10
10 - 12
12 - 14
14 - 16
>16

(km/litre)
9.04
6.52
6.37
5.70
5.21
4.06
3.57
Table 12-8: Fuel economy targets for Tractors

Class
1
2

(tonnes)
<20
>20

(km/litre)
3.09
2.01
101

Comparison of Indian vehicle fuel economy with that Japans (2010)
Fuel economy vs. vehicle weight for Indian gasoline and diesel vehicles compare with Japan
- 2010 fuel economy standards converted to NEDC test cycle are shown in Figure 12-4 and
Figure 12-5.
Gasoline vehicles
Figure 12-4 : Fuel economy vs. vehicle weight for Indian gasoline vehicles compare with Japan
Referring to Figure 12-4,
% Difference in fuel efficiency (FE) for the vehicles in the range of 1000kg (GVW)
= (19-16)/19 = 15.7%
% Difference in FE for the vehicles in the range of 1500kg (GVW)

= (13-10)/13 = 23.1%

= (8-7)/8 = 12.5%
Improvement in fuel economy can be taken as same in each vehicle category. So the average
potential savings will be approximately 17%.
Diesel Vehicles
Referring to Figure 12-5

= (13-10)/13 = 23%

= (11-8)/11 = 27.3%

= (9-7)/9 = 22.2%
Average potential savings will be approximately 24%.

102
Figure 12-5 : Fuel economy vs. vehicle weight for Indian diesel vehicles compare with Japan
Hence, the net savings potential of the petroleum

Along with improving the
product can be considered as 20% (average). The
consumption of the petroleum products in India in
efficiency of vehicle, improving
the road sector is 34.48 million tonnes in 2009the efficiency of traffic system
10. So the average fuel saving potential will be
can bring more impact.
around 6.9 million tonnes (Approx ` 34,500 crore)
of petroleum products per year in Indian
road sector. This could be brought about by not only improving vehicle mileage but also
in road transportation facility. This includes formulation of stringent traffic rules, increased
public transportation facility, signals at junctions encountered with heavy traffic, high penalties
including licence withdrawal, implementing automatic toll booths etc. Awareness programmes
from school levels are very important for success of improvement in transportation sector. The
investment potential in this field is vast since the application area is diversified.
12.8. Saving Potentialand Investment

Transportation constitutes to one fourth of the energy consumption of the world, the
predominant one being passenger vehicles. Moreover, the major fuels come from petroleum
products. Since the sector is vast and savings can come from diverse fields.
As per the Global Competitiveness Report 2008-09, inadequate infrastructure is the biggest
impediment in Indias economic growth. The report ranks the country at a dismal 87th position
as far as the quality of roads is concerned, way below neighbors. Figure 12-6 gives an idea about
the quality of roads in different countries including India. The index scores 133 economies
from 0 to 7, with 7 being the best possible score (1: extremely underdeveloped; 7: extensive
and efficient by international standards) [infrastructure project finance, 11/04/2011].
The main reasons for less fuel efficiency of vehicles in India are described below.
Frequent Traffic jams in cities and major junctions
Poor quality of roads especially in region with heavy rain
Insufficient availability of direction boards
Lack of strict traffic rules and violation of existing ones
Improper maintenance of vehicles and roads
Lack of sufficient flyovers
103
Figure 12-6 : Quality of roads in different countries as per 2011
Other than improving the efficiency of vehicle, improving the efficiency of traffic system can
bring more impact. The following measures can be considered on behalf of this.
Long range planning while constructing roads (at least 25 years)
Provision for automatic traffic signals at junctions with frequent jams
Improving drainage facility and its proper maintenance to reduce traffic jams during
rainy season
Restriction on the number of vehicles that can be owned by a person and a family
Promoting public transportation

Besides these the following can help to improve energy efficiency in transportation
104
Improve engine and vehicle designs
Impose strict laws to ensure minimum fuel efficiency for each category of vehicles
Implementing electronic tolling system
Increasing the load factor for a given transport mode
Ensuring traffic and usage patterns are optimal
Shifting from less to more efficient transportation modes
From Figure 12-3, the total projected energy usage by vehicles in road transport is approximately
4000 PJ. The energy efficiency investment in the transportation sector is a vast and time
consuming process. Hence, if sufficient importance is given to the sectors improvement, 10%
savings in the fuel can be easily obtained. The monetary saving potential in the sector is given
in Table 12-9.
Table 12-9 : Estimated saving potential in road transportation-India
Sl. No.
1
Particular
Estimated Energy usage by road transportation at
2020
Value
4000 PJ
Saving potential (10%)
400 PJ
Diesel oil equivalent
10731 billion liters
Monetary saving @ `50/liter diesel
`53,600 crore
Investment potential (@ 5 years pay back)
` 2,68,000 crore

India has a large network of road transportation. The inadequate quality of roads added to
traffic scenario in India causes unnecessary fuel usage in even the best fuel efficient cars. A
comparative study done on the vehicles of Japan with that of India showed a difference in fuel
efficiency above 10% for petrol vehicles and more than 20% for diesel vehicles. The average
fuel saving potential in the road transportation sector is found to be 10 billion litres of diesel
fuel equivalent. The investment potential in this area is vast since the transportation sector
not only involves vehicles but the road conditions, traffic rule compliance and moreover the
behavior of public. Considering all these, this may be the sector with high investment potential
of more than ` 2,50,000 crore.
12.10. Reference
1.
2.
3.
4.
5.
6.
Data directory and Year book 2013,The Energy and Resources Institute (TERI).
Report on transport and energy in India, European Business and Technology Centre
(EBTC) 2013.
Energy Scenario in Transport sector in India, K.P Singh.
Report on transport and energy in India , European Business and Technology centre
(EBTC), March 2013.
Electronic Toll Collection (ETC) Report,NandanNilekani.
Fuel Economy of Indian Passenger Vehicles - Status of Technology and Potential FE
Improvements, Dr. B. P. Pundir, Professor, Mechanical Engineering Indian Institute of
Technology Kanpur.
105
106
Agricultural and Municipal Water Pumping
Chapter
Agricultural and Municipal

Water Pumping
13
13.1. Introduction
As per the estimates released by Central Statistics Office (CSO) the share of agricultural products
/ agriculture and allied sectors in Gross Domestic Product (GDP) of the country was 51.9%
in 1950-51. The share of agriculture and allied sectors in Indias GDP has declined to 13.7%
in 2012-13 due to shift from traditional agrarian economy to industry and service sectors
[1]. 70% of Indian electricity generation is carbon based and about 20% of total electricity
consumption in India is utilized by agricultural sector mainly irrigation pump sets. Thus with
respect to climate change and also energy security in India, improving the energy efficiency of
agricultural pumps is an immediate requirement.
13.2. Indian Economy and Pump industry

Pumps play a dominant role in the sectors like agriculture, production of oil and natural gas,
petroleum refining, petrochemicals, power generation, domestic and household utilities, etc.
The Indian pump industry has more than 800 manufacturers with worker strength of over
40,000 producing about 5 million pumps annually. Indian market for pump is estimated to be
` 5000 Crore growing at an annual rate of 8% significantly higher than the global rate of 4%.
This industry in India is more than seven decades old. This industry meets 95% of the domestic
demand. Exports have been a regular feature of Indian pump industry for years. Indian pumps
have reached more than sixty (60) countries around the world (including developed countries).
Indian pump industry is characterized by the coexistence of large number of small &medium
units, some large manufacturers and plenty of foreign manufacturers [2].
13.3. Parameters affecting performance

It has been seen that there are many factors affecting the performance of the agricultural
pumps. As most of the farmers are given electricity free of cost and the electricity consumption
is not normally metered in many states, the farmers do not have any concern in conserving
energy. Hence the optimum sizing of the pumps, the maintenance, replacement of inefficient
pumps etc. do not normally happen. The common reasons for pump inefficiencies are listed
below:
1. Design of pump sets
2. Pump selection and usage
3. Undersized pipes
4. Suction head variations and large discharge lengths
5. Motor rewinding and low voltage supply
6. Water table variations
107

The Agricultural Demand Side Management (DSM) aims at providing efficient star rated pumps
to the farmers and recover the cost of the installations through saving in electricity from the
DISCOMS. The main areas for energy conservation include:
Selecting the right pump size
Controlling the flow rate by speed variation
Pumps in parallel to meet varying demand
Eliminating flow control valve
Eliminating by-pass control
Start/stop control of pump
Impeller trimming for flow reduction
13.4. Star Rated Pumps

BEE has launched Standards and Labelling Program for energy efficient appliances including
agricultural pump sets in May 2006. The program has the following aims:
Create awareness on the economic benefits of energy efficient appliances/equipment,

which provide quick payback on relatively higher capital cost and also offer better
performance over longer periods.
Provide the users/consumers with reliable information on the energy performance of

appliances/equipment so that the users/consumers can make informed choices at the
time of purchase.
Spur the demand for the manufacturing of energy efficient appliances/equipment by

promoting installation of energy efficient pumps.
The BEE Star Labelling Scheme (BEE-SLS) is currently applicable for many appliances including
agricultural pumps. But for agricultural pumps, it is not mandatory. In the case of agricultural
pump sets, the BEE Star Labelling Scheme (BEE-SLS) covers only 3-phase motor up to 15 kW
[3].
As per a study by Noida Power Company Limited (NPCL), the results achieved for replacement
of a conventional 7.4 horsepower pump set with a high efficiency 3.0 horsepower pump set
is given in Table 13-1.
Table 13-1: Result of replacing 7.4 HP Pump Set with high efficiency 3.0 HP Pump Set
Parameter
Pump motor capacity
Power factor
Water yield
Energy consumption
Summary of Results Achieved for

Result Achieved
Reduced by 4.5 HP
Increased from 0.65 to 0.85
Increased from 17 litres per second to 21 litres per second
Reduced from 10,800 kWh to 3,510 kWh per year about 67%
reduction.
13.5. Benefits of energy conservation in agriculture pumps

Energy efficiency in agriculture includes water-use efficiency as a key component. Farmers
can gain from lower electricity bills, utilities to serve a reduced peak load, and the State
can benefit from reduced energy demand and thus reduced need for additional generation
108

capacity. Moreover, energy efficiency requires neither additional input nor does it affect
agricultural yields. Implementing energy efficiency in agriculture would indeed present a winwin situation. The Benefits of energy conservation in agriculture pumps is explained in brief
in Table 13-2.
Table 13-2: Benefits of energy conservation in agriculture pumps
Benefits to
Short-term
Farmers
Improved water
Low cost of
discharge.
maintenance.
Better quality of power.
Reliable power supply.
Utilities
Better revenue
realization per unit.
Lower network losses.
Better transparency
and accountability
Reduced
investment in
generation capacity.
Better operational
and financial
performance.
Efficient pricing of
electricity.
Society
(State/India)
Lower budget subsidy.

Lower cross subsidy.
Lower peak and energy
shortages.
Reduced peak and

energy shortages.
Conservation of
ground water.
Economic efficiency in
pricing.
Rational use of
resources.
Institutional framework
for similar policies in the
future.
Lower carbon
emissions.
Lower impact on
climate change.
Lower pressure on
energy resources.
Society
(Global)
Medium-term
Long-term
13.6. Improving energy efficiency forsubsidized power users

Since early 1980s, agriculture has been identified as a critical concern for the electricity
supply industry in India. Constantly rising electricity consumption in the agricultural sector
and declining revenue realisation, owing to subsidised pricing and non-payment, have been
two main concerns that have gained public and political attention. Government of India and
many of the state governments have undertaken several initiatives to reform and rationalise
the electricity supply to agricultural consumers. Shunglu committee on the financial position
of distribution utilities has suggested a few measures to reduce losses in agricultural supply.
They include:
A separate feeder for the agriculture sector.
8 hours of minimum supply
Agricultural consumers are billed monthly on the basis of newly installed pump sets and
charge at least 50 paisa/unit.
109

Due to various reasons, most of the recommendations are yet to be implemented by the
States
13.7. Business Model for Project

Agriculture Demand Side Management is one way to improve the energy efficiency of the
agricultural sector. Bureau of Energy Efficiency has brought out three (3) different models for
smooth implementation of this project. In all the models the farmer is benefited by getting an
energy efficient pumps and the Distribution Company is benefited by reduction in electricity
consumption.
DISCOM Mode
In the DISCOM mode, the project is financed by a DISCOM. The implementation is carried
out by an ESCO. DISCOM utilizes a part of Load Management Charge (LMC). Fund collected
under a tariff regulation for replacement of old inefficient pumps with energy efficient pump
sets. Under this mode the repair and maintenance of pumps and certain aspects of project
works is contracted out to a project contractor.
ESCO Mode
An ESCO which has a contract with DISCOM, finances and implements the project; the ESCO
would borrow the project debt and repay it from project revenues (ESCO Mode - 100%
investment made by the ESCO). In this model benefit savings to be retained by ESCO as per
agreement between utility & ESCO.
Hybrid Mode
ESCO provides a part of project funds through debt & equity and sign a contract with DISCOM,
whereas part of the project fund would be contributed by DISCOM. In this model certain
percentage of benefit savings is retained by ESCO.
13.8. Risks in AgDSM Project

All the three models have Risk factors beyond the control of the ESCOs and DISCOMs. A
judicial calculation is to be made on case to case basis for taking up any project. The following
are the few common risks.
110
Farmer behaviour Farmer may allow or disallow change of pumps. They may also
stipulate their own conditions for the pump replacement. As we need to work in their
territory, if majority of farmers join together and put difficult conditions, the work cannot
be possible. Creating awareness among them is very important.
Water table declines The pumps are replaced based on the present condition giving
same water flow with that of the existing pumps. If the water table goes very low due
to draught in that area, the same pump may not be in a position to bring out required
water. As the pumps will be under the ESCO or the DISCOMs during the project period,
which is normally about 5 to 6 years, pumps may again needs to be replaced to provide
required water discharge to the farmers.
Maintenance of the pumps for a long period In ESCO mode the project cost recovery
shall take about 5 to 6 years. During this period the maintenance of the pumps need to
be done by the ESCO. The pump suppliers are not very much comfortable to provide
such long period service.
13.9. Investment requirement for Agriculture DSM

According to CEA report India has about 20 million agricultural pump sets in operation and
every year about 0.5 million are added in this sector. The average efficiency of these pumps
varies from 25-35%. By using energy efficient pump sets the efficiency can be improved to
around 50% [4]. Table 13-3 shows the investment require in replacing the old inefficient
pumps in India. [5]
Table 13-3 : Investment required in whole of India
Particular
Value
Number of Pumps
20 million
Annual power consumption by Agricultural sector @20%
131.96 TWh
Saving potential @ 25 % of power consumption
32.99 TWh
Savings in Rupees @ ` 5/unit for agricultural
` 16,500 crore
Investment required @ ` 50,000/pump
` 1,00,000 crore
The State wise distribution of number of pumps and investment required are placed in
Annexure-VI.
13.10. Efficiency improvement in Municipality Pumps

Pumps are used in Public Water Works and sewage in the Municipality sector. These pumps
are also equally inefficient as most of them are very old and needs replacement. These pumps
can be replaced and the cost can be recovered through the electricity tariff of the saved energy
units. The implementation model used for agricultural DSM is applicable to Municipal Pumps
also. The distribution of number of pumps in the major Urban Local Bodies (ULBs) of different
states is placed at Annexure-VII. Investment required in replacing the inefficient municipality
pumps in India is given in Table 13-4.[5]
Table 13-4 : Investment required on pan India basis
Sl. No.
Description
Details
Number of Pumps
2.3 million
Annual power consumption by Municipality sector
11.821 TWh
Saving potential @ 30% of power consumption
3.546TWh
Savings in ` @ 5/unit
` 1,773 crore
Investment required @` 60,000/pump
` 13,920 crore
13.11. Conclusion
Huge saving of electricity is expected by replacing inefficient Agricultural and Municipal Pump
sets. This savings not only reduce the electricity consumption but also improve the CO2 emission
indirectly. In States where agricultural power tariff are very low, the project shall be somewhat
difficult to implement due to large payback period. As the saved power is sold to industrial
and other commercial establishments, states maycome forward to implement the scheme with
due cooperation and reasonable revenue model. This may lead to a huge benefit that can be
reaped in short span of time.The investment in replacing the agricultural and municipal water
pumps in India is estimated to be approximately ` 1,14,000 crore.
111
13.12. References
112
1.
Agricultures share in GDP declines to 13.7% in 2012-13, The Economic Times, Aug 30
2013.
2.
Pump and valve industry-Overview and opportunities, Singhi Advisors, May 2014.
3.
Promoting BEE star labelling in pump set industry by strengthening business development
services, A case study in Rajkot Engineering Cluster, TERI.
4.
State-wise electricity consumption and conservation potential in India, BEE, accessed

on May 2014.
5.
www.cea.nic.in.
Chapter
14
Ceramic Industry
14.1. Introduction
Ceramic industry is one of the age-old industries and has evolved over centuries, from potters
wheel to a modern industry with sophisticated controls. Ceramics also known as fire clay is an
inorganic, non-metallic solid article, which is produced by the art or technique of heat and
subsequent cooling. Ceramic industry has been evolving continuously, with newer innovations
in product design, quality etc. Ceramic products like crockery, sanitary ware, tiles etc. play a
very important role in our day to day life. Moreover, ceramics are used in many industries and
utilities with heat resisting and refractory applications, like furnace internal lining, power line
insulators, etc.
14.2. Indian Economy and Ceramic Industry

Ceramic tile market in India has witnessed an unprecedented growth due to an increase in the
number of earning individuals and boom in the real estate sector. Lifestyle of the consumers is
improving and their aesthetic sense has also increased, resulting in higher demand for ceramic
tiles. Growth potential of ceramic tiles in India could be assessed from the fact that India stands
at third position globally in the ceramic production. It is one of the fastest growing industries,
with a projected growth rate of 15% in India [1]. Ceramic industry is creating job opportunities,
both directly and indirectly for considerable number of people (around half a million), thus
playing significant role in Indian Economy [1].
14.3. Current Statics of Indian Ceramic Industry

As per the data presented by Indian Council of Ceramic and Sanitary ware (ICCTAS),the current
statistics of the ceramic industry in the country is shown in Table 14-1[1].
Table 14-1 : Ceramic Tile Industry Statistics
Sl. No.
Description
Quantity
World production
9515 Million sq.mt
Indias share
600 Million sq.mt
World ranking in production
Per capita consumption
0.50 sq.mt
Global industry growth rate
11%
Growth rate India domestic market
15%
Ceramic Industry
113

Sl. No.
Description
7
National players turnover
a) Glazed wall tile
Quantity
` 7200 crore
20%
b) Glazed Floor tile
23%
c) Vitrified tile
d) Industrial tile
50%
7%
Regional players turnover
` 10800 crore
National Sector
a) Share of production
b) No. of Units
40%
14
10
Regional sector
a) Share of production
60%
b) No. of Units
200
11
Job potential
50,000 direct & 500,000

indirect
12
Investments in last 5 years
` 5000 crore
14.4. Global scenario of the ceramic industry

The global ceramic industry has undergone a significant change over the years, driven by the
demand of a globalised economy. While the traditional markets of Europe and the US continue
to grow, primarily led by public sector investment, the most significant developments are,
however, to be found in the emerging economies. They have, in recent years become the most
significant players in the ceramic market, in terms of consumption, growth and investment.
The growth trend of the last few years in the ceramic indu stry in the world can be given by
Figure 14-1 [3]. The graph categorically depicts the growth of the ceramic industry in the
world and the need for the ceramic products is increasing constantly. The growth trend of the
last few years in the ceramic industry in the country can be given by Figure 14-2 [3].
Figure 14-1 : World Ceramic Trade (Source: ITC, Geneva)

114
Ceramic Industry
Figure 14-2: Indian Ceramic Trade (Source: ITC, Geneva)
14.5. Manufacturing process of ceramics

Naturally occurring inorganic substances are heat-treated after adjustment of the grain size
and moisture, melted and formed into ceramic products. These ceramics are called traditional
ceramics, used in house-holds, etc., By contrast, extremely fine particles of high-purity inorganic
substance Alumina (Al2O3), Silica (SiO2), Zirconia (ZrO2) and Silicon Nitride (Si3N4) are
sintered at a high temperature and made into ceramics; they are called advanced ceramics.
These advanced ceramics are used in electronic parts and mechanical parts. [5]
Basic production process line of ceramics is shown below:
Raw material stacking Crushing Blending Kneading Forming
Drying Firing Processing & shipment
Firing and drying process consume highest energy in the complete production process line.
14.6. Energy Consumption

The ceramic industry is highly energy intensive industry in the country and the expenditure
on energy, ranks only next to the raw material in the manufacture of ceramic. With the everincreasing fuel prices and power tariffs, energy conservation needs no special emphasis. The
energy cost as a percentage of manufacturing cost, is presently around 20-25% [2]. The main
fuel used by the ceramic industry is LPG and natural gas. The other fuels used are furnace oil,
LSHS, LDO and HSD [2].

The overall size of the Indian ceramic tile industry is approximately `18,000 crore (FY2012)
[1]. The Energy cost account for nearly 20 to 25% of the manufacturing cost and hence, energy
conservation is strongly pursued as one of the attractive options for improving the profitability
in the Indian Ceramic Industry. The various energy conservation studies indicate an energy
savings potential of about 15%. As per calculation the present requirement works out to be as
given in Table 14-2 [2].
Ceramic Industry
115

Table 14-2: Energy Saving Potential in Ceramic industry
Sl.No.
Particular
In 2012
In 2014*
Growth percentage
15%
15%
Energy Intensity
20-25 % of manufacturing cost
Energy Costs
` 3600 crore
` 4761 crore
Energy saving potential
15% of the energy cost

` 540 crore
15% of the energy

cost ` 714 crore
Required Investment @ 5
year pay back
` 2700 crore
` 3570 crore
* The extrapolation for the year 2014 was done taking the growth rate of 15% per year
14.8. Energy conservation Areas and Conservation measures

Major Energy consuming areas and Energy conservation measures in any ceramic industry can
be listed as below [4].
Kiln
1.
Heat balance is maintained in firing process, current kiln structure design can be modified
with universal standards [5]
2.
Auto interlock between the brushing dust collection blowers and the glazing lines
3.
Improving combustion efficiency of VSK by optimizing excess air levels
Spray Drier
1.
Arresting air infiltration in spray drier system
2.
Replacing LPG with diesel firing in the spray drier
Vertical Drier
1.
Switch off chiller circuit when hydraulic press is not in operation
2.
Reducing idle operation of hydraulic press pump by installing suitable interlocks
Other Utilities
116
1.
Optimising pressure setting of air compressors
2.
Replacement of aluminium blades with FRP blades in cooling tower fans
3.
Installation of temperature indicator controller (TIC) for optimizing cooling tower fan
operation
4.
Installation of dual speed motors/VSD for cooling tower fans
5.
Avoid/minimize compressed air leakages by vigorous maintenance
6.
Install level indicator controllers to maintain chest level

Ceramic Industry
14.9. Conclusion
The Ceramic Market in India is showing remarkable growth due to the booming real estate
sector along with the rising living standards on the consumers. The detailed study of this sector
reveals a saving potential of about ` 714 Crore per annum. The investment requirement to
attain the above saving is estimated to be about ` 3570 crore. Adoption of energy efficiency
measures in the ceramic sector can help the country in improving its economy as well as the
carbon emission.
14.10. Reference
1.
Ceramic Tile Industry Statics in India: http://www.icctas.com/ceramic-tiles-industry.
2.
IREDA Investors manual for Energy Efficiency Energy Management Cell, Confederation
of Indian Industry.
3.
Ceramic Industries in India A trade perspective, Report by CII, accessed on June

2014.
4.
Building a Low Carbon Indian Industry Confederation of Indian Industries(CII).
5.
Handy manual, Output of Seminar on energy conservation in ceramic industry, UNIDO,

Japan.
6.
https://www.unido.org/fileadmin/import/userfiles/puffk/ceramic.pdf.
Ceramic Industry
117
118
Ceramic Industry
Chapter
15

15.1. Introduction
In India, Small and Medium Enterprises (SMEs) comes under the Ministry of Micro, Small and
Medium Enterprises (MSME). According to World Bank, SME sector plays a significant role in
terms of balanced and sustainable growth, deployment of entrepreneurial skills, and represents
the greatest potential to create new employment opportunities.
In Indian context, micro, small and medium enterprises as per the MSME Development
Act, 2006 are defined based on their investment in plant and machinery (for manufacturing
enterprise) and on equipment for enterprises providing or rendering services. According to
the Micro, Small and Medium Enterprises (MSME) Development Act of 2006, (India) a micro
enterprise is where the investment in plant and machinery does not exceed ` 25 lakh. A brief
description of the small and medium enterprises is described in Table 15-1 [1].
Table 15-1: Small and medium enterprise definition
Nature of the
Small Enterprise
Enterprise
Manufacturing Investment in plant & machinery
Sector
more than ` 25 lakh but does not
exceed ` 5 crore
Service Sector Investment in equipment is more
than ` 10 lakh but does not exceed
` 2 crore
Medium Enterprise
Investment in plant & machinery
more than ` 5 crore but does not
exceed ` 10 crore
Investment in equipment more
than ` 2 crore but does not exceed
` 5 crore
There are over 6000 products ranging from traditional to high-tech items, which are being
manufactured by the MSME sector as shown in Figure 15-1.
Figure 15-1: Leading industries in MSME sector

119

As per the Annual Report of the Ministry of MSME, the 29 million MSME units provide direct
employment to about 70 million personnel [2]. The sector holds immense promise in fostering
creativity and innovation in products and processes, given that the investment in setting up
units is relatively low and uncomplicated. At the same time the survival of SMEs in India largely
depends on ability to innovate, improve energy efficiency and increased productivity. As SMEs
are facing global competition and energy representing substantial part of the manufacturing
cost, they can reap direct economic benefits by improving energy efficiency which is equally
important for their survival.
15.2. Indian Economy and SMEs

SMEs employ the largest manpower next to agriculture with a comparatively low capital
investment as compared to large industries constituting about 45% of industrial sector
employment. There are almost 3 million SMEs in India which together contributes 45% of
industrial production, 17% of national GDP and 40% of the net export.
Although 94% of micro, small and medium firms are unregistered, the contribution of the
sector to Indias GDP has been growing consistently at 11.5% annually, which is higher than
the overall GDP growth of 8%. The Small and Medium Enterprises (SMEs) contribution to
Indian GDP is expected to increase to 22% by 2020, from the present 17%.
15.3. Energy Efficiency Potential in SMEs

As per the present reports available, 48% of the total energy consumed in industrial sector
is from SMEs. It is also reported that 25% of this energy could be saved without substantial
investment. In August 2010, GoI had announced that the potential energy saving in Indian
SME is between 15% and 40%. Hence energy efficiency at SME could be of top priority [1].
Large number of Small SMEs like foundries, brass, textiles, refractories, brick, ceramics, glass,
utensils, rice mills, and khandsari manufacturing units etc., are said to have immense potential
for energy savings. Many of these units are in clusters located in various states. Few visible
barriers to energy efficiency in Indian SMEs are
1. Unwillingness of organizations to enter into long term contracts
2. Reluctance of top management to enter into energy efficiency projects
3. Awareness programmes are not good enough or having no impact on the mind-set of
people
4. Non-availability of skilled manpower in the country or their improper utilization.
As per an assessment by BEE, the total potential of electricity savings in the industrial sector
is close to 18 billion units annually. Comprehensive programme during the 12th plan could
result in annual cost savings to SMEs of around ` 2,000 crore [2]. This will go a long way in
enhancing cost competitiveness of SMEs. Table 15.2 gives the energy consumption by various
sectors in the country.[3]
Table 15-2: Sectorial Energy Consumption
Sector
Consumption (billion kWh)
Sl. No.
120
1
2
3
Industry (including SMEs)

Agricultural pumping
Commercial Buildings (connected load>500 kW)
265.38
92.33
9.92
Municipalities
12.45
Domestic
120.92
Figure 15-2 : Energy Saving potential in various sectors, 2008
The BEE study pertaining to SME revealed the overall saving potential of the clusters is about
72,432 toe which is 27.4 per cent of the total energy consumption in SMEs [3].
BEE is also the Implementing Agency for GEF (Global Environment Facility) Programmatic
Framework for Energy Efficiency in India in which World Bank and UNIDO are the GEF
agencies working on Energy Efficiency in SME clusters. World Bank would work in 5 clusters
& UNIDO in 12 clusters.
15.4. Role of ESCOs and Government in SME

It is pertinent to mention that ESCOs worldwide have been successful in enhancing energy
efficiency of SMEs. For example, the energy consumption in Brazil is about 40% of Indias but
the aggregate revenue generation from the ESCO industry is sixteen (16) times greater than
that of India [4]. Based on study of successful international ESCO models and analysis of the
opportunities and barriers in India, following are required.
A National SME Cluster Mapping Program to build SME Cluster Data Base for EE needs
to be conducted.
It is important to integrate energy efficiency improvement schemes of BEE with the

Industrial Infrastructure Up-gradation Scheme (IIUS) of Department of Industrial Policy
and Promotion (DIPP) and involve ESCOs as the SPVs for implementing the EE through
EPC.
There is a need to initiate a National Technical Assistance and Knowledge Management

Program on Energy Efficiency for capacity building and increasing awareness for Energy
Efficiency amongst the SMEs and Banks.
There is a need to declare EE lending to SMEs as Priority Sector Lending by the Reserve
Bank of India and simultaneously allow cash flow based financing for EE projects by
issuing clear guidelines to Banks in this regard.
Revival of the Indian Council for Promotion of Energy Efficiency Business (ICPEEB) and
SME Cluster Associations is required.
121

Stake Holders for implementing EE in SME are
Government.
Development Agencies.
Energy Consultants.
ESCOs.
Manufacturing Companies
Lenders.
Role of the Government is to encourage the SME to adapt EE measures, educate them, give
them incentives for taking up energy efficiency, and encourage them to identify EE projects. The
role of ESCO is also very important as it has to adopt modern technology for implementation
of the EE project.
A comprehensive approach towards the removal of key barriers in financing, government
initiatives, enabling policies, fiscal/tax incentives and strong industry support will be crucial in
enhancing the role of ESCOs in promoting energy efficiency in the SME sector in India.

The total establishments in SME sector are so large with almost 3 million in number and hence
energy efficiency investment potential estimation in the entire sector is quite difficult. Anyhow
it is estimated that almost 25% of the energy consumed by these industries can be saved. With
data from Table 15-2 and considering the saving potential mentioned, Table 15-3 has been
brought out.
Table 15-3: Energy saving potential in SME
Sl. No.
Particular
Value
Energy consumption by industrial sector in India

(Table 15-2)
265.38 billion kWh
Energy consumption by SMEs
127.38 billion kWh (48%)
Saving Potential
Monetary saving (@ ` 5/kWh)
` 15,900 crore
` 79,500 crore
15.6. Conclusion
The SME sector is crucial to Indias economy since it contributes to 17% of national GDP
and 45% of industrial production. The sector constitutes to almost 48% of the total industrial
energy consumption. The total establishments in this sector are so large with almost 3 million
in number and hence energy efficiency investment potential estimation in the entire sector is
difficult. However it is estimated that almost 25% of the energy consumed by these industries
can be saved. With the available data, the energy saving possibility in the SME sector is found
to have a value of approximately ` 16,000 crore with an investment of ` 80,000 crore.
122
15.7. Reference
1.
Approach to energy efficiency among micro, small and medium enterprises in India:
Results of a field survey, UNIDO, 2011.
2.
SMEs can be more energy-efficient, The Hindu, January 2012.
3.
Electricity Crisis in India, www.electricityinindia.com.
4.
Unlocking Energy Efficiency Market in Indias SME Sector, Amit Jain, 2011.
123
124
Chapter
Coal Mining
16
16.1. Introduction
Coal is the worlds most abundant fossil fuel and the largest source for production of
electricity. Coal accounts to about 42% of worlds electricity production and 30.3% of global
primary energy demand. According to German Federal Institute for Geosciences and Natural
Resources, the world has a total proven coal reserve of about 1038 billion tonnes whereas the
British Petroleum reported it to be 861 billion tonnes. The increment in world primary energy
demand by fuel during 2000-2010 is given in Figure 16-1 [1].
Figure 16-1: Incremental world primary energy demand by fuel, 2000-2010
Coal is the most mined item both in India as well as in the world. In the last several years, the
coal mining in India and China has tremendously increased due to rapid capacity additions.
Coal production in the Asia Pacific region has grown tremendously and accounts for over 67%
of the global production in 2011[2].
Since 2000, the global consumption of coal has grown faster than any other fuel. China holds
the first place among all the coal producing countries which now uses as much coal as rest of
the world (about 48%).The United States remains the second largest coal producer, followed
by India and Australia. Figure 16-2 shows the global coal production by various regions in
world over the past three decades. From the analysis,it reveals that the Asia Pacific region has
tremendously increased their coal production in last decade [3].
Coal Mining
125
Figure 16.2: Global Coal Production
16.2. Indian Coal Sector

In India, 80% of mining is in coal. Of the total reserves, nearly 88% are non-coking coal
reserves, while tertiary coal reserves account for about 0.5 % and the balance is coking coal
[2].
In India, the Electricity sector is the largest consumer of coal followed by the steel and cement
sectors. Sector wise coal consumption in India during the period of 2010-2011 is shown in
Figure 16-3 [4].
Figure 16-3 : Sector Wise coal consumption in India, 2010-2011
Indian coal quality is poor as compared to other top coal producing countries and hence need
to mine more coal for the same electricity generation. It is characterized by low calorific value
(ranging from 2500-5000 kcal/kg). Comparison between the Indian coal and the coal available
in USA and China is given in the Table 16-1 [5].
126
Coal Mining

Table 16-1: Comparison of Indian coal with that in USA and China
Details
India
US (Ohio)
China
(Long Kou)
Kahalgon
Simhadri
Sipat
Carbon (%)
25.07
29.00
30.72
64.20
62.80
Hydrogen (%)
2.95
1.88
2.30
5.00
5.60
Nitrogen (%)
0.50
0.52
0.60
1.30
1.40
Oxygen (%)
6.71
6.96
5.35
11.80
21.70
Moisture (%)
18.50
15.00
15.00
2.80
11.00
Sulphur (%)
0.17
0.25
0.40
1.80
0.90
Ash (%)
46.00
46.00
45.00
16.00
7.70
Calorific Value, kCal/kg
2450
2800
3000
6378
6087
India is currently facing coal shortage and importing large quantity of coal to fill the demand
supply gap. This has been the scenario for last several years as evident from Figure 16-4 given
below. At the present production level, the shortage shall continue [6].
Figure 16-4 : Demand-supply scenario of coal in India
In 1990 India imported only 3% of the coal to meet the demand whereas in 2010 it rose to
14% (90 MT) mainly due to the growing iron and steel industry and rapid generation capacity
addition. The net money spent for coal imports in 2010 was ` 55,800 crore, a much considerable
increase from 1990 which was ` 2,500 crore. Rather than iron and steel sector, the increased
import is also assisted by higher quality coal demand by the supercritical power plants. The
import reached approximately 21% in 2013 which in quantitative term becomes 152 million
tonnes [Reuters]. The increase in coal import in India during 1990-2010 is graphically depicted
in Figure 16-5.
Domestic coal demand reached 772 MT during 2012-13 whereas production was only 557
MT, a gap of 215 MT. During this period it is reported that India imported 113 MT of coal.
Present situation of demand supply gap filling with such large scale coal imports has a major
disadvantage that the global coal price variation can highly affect the countrys economy. If
the present situation continues, it is estimated that the net coal import will touch 185.5 MT
Coal Mining
127

by end of 2016-17. The same value is supposed to grow to 280 MT by 2020 and 460 MT by
2035 [7].
With the anticipated growth of coal-fired electricity-generating capacity, India will require
increased investments in coal mining operations, and power plants.
Figure 16-5 : Coal import in India (Source: IEA, 2012)
Domestic coal demand reached 772 MT during 2012-13 whereas production was only 557
MT, a gap of 215 MT. During this period it is reported that India imported 113 MT of coal.
Present situation of demand supply gap filling with such large scale coal imports has a major
disadvantage that the global coal price variation can highly affect the countrys economy. If
the present situation continues, it is estimated that the net coal import will touch 185.5 MT
by end of 2016-17. The same value is supposed to grow to 280 MT by 2020 and 460 MT by
2035 [7].
With the anticipated growth of coal-fired electricity-generating capacity, India will require
increased investments in coal mining operations, and power plants.
16.3. Future Coal Demand

As peran estimate, the energy requirement in India is required to grow 2.8 times that of 200607 levels, by 2022. In FY09, it has been estimated that coal met 52.4 percent of the total
primary energy requirement [8].
IEA analysis shows that higher economic growth in India will go in tandem with higher energy
demand and higher coal imports. India is also set to pass China as the worlds largest importer
of coal soon after 2020.
About 75% of the coal in the country is consumed in the power sector. Total demand for coal
grew by around 6.6% during the 11th against domestic production growth of only 4.61 per
cent, and the gap was filled from higher imports. The projected GDP growth targeted during
the Twelfth Plan has lead to a high demand for coal. However, increased efficiency measures,
including introduction of supercritical technology in power plants reduces the demand for
coal.
128
Coal Mining

Ministry of Coal has projected two scenarios during the 12th five year plan. Scenario-I projects
a coal demand of 1204 million tonnes and scenario II projects 980.5 million tonnes at the end
of the five year plan. Scenario I implies 13.5% CAGR whereas scenario II implies a growth
rate of 8.9%. Latter is considered to be more realistic based on the observation in specific
consumption in each sector. From this scenario, total coal demand will reach 980.50 million
tonnes, an increase of 186 million tonnes over the Twelfth Plan period.
16.4. Coal Mining in India

India had a well-developed coal mining culture in the pre-independent days. After independence
there was a growing thrust for open cast mines and from 90% of underground mining, the role
reversal took place with 90% of opencast mines and 10% underground mines. This resulted in
large use of HSD oils and lubricants which is basically being imported [9].
Coal India Limited (CIL) is the major coal producer in India and the worlds largest. The
company has estimated a shortage of 350 million tonnes for 2016-17.
16.5. Energy Consumption in Coal Mining

90% of our annual (500 million tonnes) coal production comes from petroleum fuel intensive
opencast mines and remaining from electrical intensive underground mines. The energy
consumption in opencast mines is around 90% from petroleum fuels and 10% from electrical
energy. In case of underground mines the case is reverse, with 90% electrical and 10% diesel
oil or even less. The average specific power consumption in the underground operations is
around 17 kWh/Tonne of coal produced [9].
Oil consumption for one tonne of coal production averaging from 1 to 1.8 Litres of HSD. For
500 million tonnes of coal production per annum, the approximate HSD consumption is a
whopping 700 million litres of petroleum fuel inclusive of lubricants, which accounts for nearly
10 % of Indias oil consumption [9].
Figure 16-6 shows the various processes involved in coal mining industry along with percentage
energy share.
Figure 16-6 : Energy share in coal mining sector

Coal Mining
129

In an energy audit conducted on three (3) different coal mines in Jharkhand, it revealed
spectacular energy saving potential in Petrol, Diesel and Lubricant. Audit (POL Audit) in
open cast mining shows saving potential of 50% of the consumption with little investment is
possible. This is achieved by implementing administrative systems and procedures and the
rest by reducing the idle time of equipment conducting time studies. For a production of 2.5
million tonnes of Run-Off Mine coal the consumption to the tune of 55 lakh litres could be
brought down to less than 30 lakh litres, by following means [9].
It involves:
1.
Increase capacity utilization (only 40% was observed) through proper planning
2.
Proper maintenance of the roads in mines for fuel efficiency
3.
Maintain the stipulated speed of vehicles in mines
4.
Idle time study and remedial action
5.
Conduct energy audits periodically, say 3 years
The total energy saving potential in Indian mining sector is estimated to be in the range of 5-8%
based on study by CIMFR. Table 16-2 shows the approximate saving potential in the field of
mining sector in India which shows to be over `300 crore. Even though this finds to be a small
value as compared to savings achieved in other sectors, it is to be considered that mining is
only a portion of the coal supply chain and hence the contribution in savings is imperative.
From the discussion, it is imperative that the following years have to go through a hike in the
coal mining so as to compensate for the supply shortage and import reduction.
Table 16-2 : Energy Saving Potential for Indian coal mining sector
Particular
Value
Production cost of coal/tonne by CIL in 2013
`1121/tonne
Coal production by CIL in 2013
452 Million tonnes
Energy cost/tonne (@10 % total production cost)
` 112.1/tonne
Monetary saving potential (@6 % total energy cost)
` 6.73/tonne
Total annual Monitory savings
` 304 crore
Investment @ 5 year Pay back
` 1520 crore
According to the paper Energy Performance of Dump Trucks in Opencast Mine by Lalit
Kumar Sahoo et al., the energy consumption in dump trucks accounted for about 32% of the
total energy requirement in opencast mines. The researchers also mentioned that the optimal
speed was 28 km/h for empty dump truck and 25 km/h for loaded dump truck. The studies
were conducted for certain targeted mines which can be applied to other mines also.The
major electrical energy saving areas in mining industry isCompressed air system, Pumping
System, Ventilation Fan and Demand Saving.
130
Coal Mining

Energy conservation measures that can be implemented in the mines are given below.
Optimization of fuel consumption in dump trucks and excavators.
Use of High capacity, efficient diesel engine for dump trucks and excavators.
Improvement of maintenance of HEMMs (Heavy Earth Moving Machinery).
Introduction of energy efficient motors.
16.7. Conclusion
Indian coal industry has been lagging behind in filling the demand supply gap for years which still
continues to be the situation. Adoption of energy efficiency measures in the mining equipment
and efficient exploration process of coal can help the country improving its economy and
hence promoting the GDP of the nation. The promotion of coal sector can automatically
give an increase in growth to all the core infrastructure sectors basically power. The identified
investment in this sector is estimated as ` 1,520 crore.
16.8. Reference
1.
World Energy Outlook 2011, IEA.
2.
The Indian Coal Sector: Challenges and Future Outlook, Price Water Coopers, Nov
2012.
3.
British Petroleums Statistical Review of World Energy, June 2012.
4.
Annual report, Ministry of coal, India.
5.
Coal Initiative Reports, 2008.
6.
India Energy Book , 2012, World Energy Council.
7.
Understanding Energy Challenges in India, Policies, Players and Issues; IEA, 2010.
8.
The Challenge of Black Fuel and Greener growth, 3rd India coal submit, November
2010.
9.
The Urja Watch, January 2010.
Coal Mining
131
132
Coal Mining
Chapter
Power Transmission and

Distribution Sector
17
17.1. Introduction
More than 60% of electricity generated in India is Coal based and the coal reserves
areconcentrated at only few locations in the central and eastern part of the country. Other
major energy source Hydro Power is mainly concentrated in the Northern Himalayan region
or hilly regions in the eastern part. At the same time, electricity generation from renewables
are also concentrated in few states like Tamil Nadu, Gujarat, Maharashtra, Andhra Pradesh,
Rajasthan, Karnataka etc. On the other hand demand for electricity is wide spread across the
country. Studies show that, it is far economical to transfer electricity over coal. Other sources
of energy like hydro, renewables etc. cannot be transported at all. Therefore, wide spread
network of long transmission and distribution lines have been developed on pan India basis. It
has been found that while transporting electricity from source to end consumer, today over 21%
of the total electrical energy generated in India is lost as transmission (3-4%) and distribution
(15-18%) losses. In order to minimise the electricity lost in the long distance transmission,
higher voltage transmission system and long distance HVDC transmission, FACT and emerging
technologies has been adopted on a large scale across the country, that has brought down the
transmission losses level at par with international level.
It is possible to bring down the distribution losses to a 6-8 % level in India with the help
of advanced technological options and by adopting smart grid and information technology.
[1]. State wise breakup of Transmission &Distribution (T&D) losses in India is shown in
Figure 17-1.
Figure 17-1 : State Wise T&D losses in India (2010-11)

Power Transmission and Distribution Sector
133
17.2. Aggregate Technical and Commercial (AT&C) Loss

AT&C losses refer to the difference between cost of energy (kWh) input into the system and
the energy for which the payment is collected. As the T&D loss was not able to capture all
the losses in the network, concept of Aggregate Technical and Commercial (AT&C) loss was
introduced. AT&C loss captures technical as well as commercial losses in the network and is a
true indicator of total losses in the system. State wise breakup of AT&C losses in India for the
year 2013-14 is shown in Figure 17-2.
Figure 17-2 : Aggregate Technical & Commercial losses of SPUs
17.3. Distribution Losses around the world

A comparison of distribution losses in India with best practice countries is shown in
Figure 17-3. It is seen from Figure 17-3 that the distribution loss in India is very high compared
to other developing and developed countries including that of China. Though there is a slight
decline over a period of time, it is well above the world average.
Figure 17-3 : Comparison of Distribution Loss for India and best practice Countries
134

According to the Power Finance Corporations Report on Performance of State Power Utilities
for the year 2008-09 to 2010-11, there were 15 nos. distribution utilities in India that recorded
losses more than 40% and 17 nos. distribution utilities record losses between 25% and 40%
which is a matter of great concern [2].
17.4. Reasons for High Losses [3]

Some of the most common reasons for high T&D losses in India are as listed below:
Weak and inadequate sub-transmission and distribution system due to low priority being
given to these works.
Large scale Rural Electrification programme undertaken in the country resulting in

long lines and extension of distribution network without strengthening the back-up
transmission, sub-transmission and distribution system.
Too many transformation stages resulting in higher component of transformation losses.
Improper load management resulting in over-loading of system.
Low power factor due to poor pumping load in rural areas; and air conditioners, coolers
and industrial loads in urban areas and inadequate reactive compensation at the load
points.
Low quality of construction and inadequate maintenance of equipment.
Unmetered supply to agricultural pumps and small domestic connections to weaker

sections of the society in some States.
Pilferage and theft of energy as mostly High Voltage Distribution System(HVDS) is not
adopted.
17.5. Cascade Efficiency in Electricity Sector

In the process of electricity generation from primary sources to consumption by end consumer,
energy losses occur at various stages. The primary function of transmission and distribution
equipment is to transfer power economically and reliably from one location to another.
A large number of copper or aluminium conductors are used to form the transmission path.
The resistance of the long distance transmission conductors is to be minimized. Energy loss
in transmission lines is wasted in the form of I2R losses.
Capacitors are used to correct power factor by causing the current to lead the voltage. When
the AC currents are kept in phase with the voltage, operating efficiency of the system is
maintained at a high level.
Transformers are placed at strategic locations throughout the system to minimize power losses
in the T&D system. They are used to change the voltage level from low-to-high in step-up
transformers and from high-to-low in step-down units.
The power source to end user energy efficiency link is a key factor, which influences the
energy input at the source of supply. If we consider the electricity flow from generation to the
user in terms of cascade energy efficiency, typical cascade efficiency profile from generation to
11-33 kV user industry will be as below:
135

Generation
Efficiency
H1
Step-up
Station
H2
Step-up
Station
H3
Step-up
Station
H4
Step-up
Station
H5
Step-up
Station
H6
End User
Premises
Efficiency ranges 2835% with respect to size of thermal plant, age of plant
and capacity utilization
Step-up to 400-800 kV to enable EHV transmission Envisaged max. losses

3-4% or efficiency of 99.5 %
EHV transmission and substations at 400 kV/800 kV. Envisaged max. losses
1% or efficiency of 99 %
HV transmission and substations for 220/400 kV Envisaged max. losses 2.5%

or efficiency of 97.5%
Sub-transmission at 66/132 kV
Envisaged max. losses 4% or efficiency of 96%
Step-down to a label of 11/33 kV.

Envisaged max. losses 0.5% or efficiency of 99.5%
Distribution is final link to end user at 11/33 kV.

Envisaged max. losses 5% or efficiency of 95 %
Cascade Efficiency from generation to end user

= H1 x H2 x H3 x H4 x H5 x H6 x H7
The cascade efficiency in the T&D system from output of the power plant to the end user is
87% (i.e. 0.995 x 0.99 x 0.975 x 0.96 x 0.995 x 0.95 = 87%)
End Use
At the industrial end user premises, again the plant network elements like transformers at
receiving sub-station, switchgear, lines and cables, load-break switches, capacitors cause
losses, which affect the input-received energy. However the losses in such systems are meager
and unavoidable. As explained above, after power generation at the plant it is transmitted and
distributed over a wide network. The standard technical losses are around 17% in India. But
the figures for many of the states show T&D losses ranging from 17-50%. All these may not
constitute technical losses, since un-metered and pilferage are also accounted in this loss.
136

When the power reaches the industry, it meets the transformer. The energy efficiency of the
transformer is generally very high. Next, it goes to the motor through internal plant distribution
network. A typical distribution network efficiency including transformer is 95% and motor
efficiency is about 90%. Another 30% (Efficiency=70%) is lost in the mechanical system which
includes coupling/drive train, a driven equipment such as pump and flow control valves /
throttling etc. Thus the overall efficiency becomes 50%. (0.83 x 0.95 x 0.9 x .70 = 0.50, i.e.
50% efficiency)
Hence one unit saved in the end user is equivalent to two units generated in the power plant.
[4]
Figure 17-4 : Overall Energy Efficiency in Electricity
17.6. Technical Loss Reduction in Distribution Sector

Globally it has been observed that technical losses in the distribution system can be reduced
by adopting best practices. Some of them are discussed in following section:
High Efficiency Distribution Transformers
Distribution transformers are the second largest loss-making component in electricity networks
after distribution lines. Transformers are relatively easy to replace, certainly in comparison with
lines or cables, and their efficiency can easily be classified, labelled and standardized. Improving
the efficiency of distribution transformers in electricity networks will yield substantial net gains.
As per the Leonardo Energy Transformers manual, the worldwide electricity savings potential
137

of switching to high efficiency transformers is estimated to be at least 200 TWh. This savings
potential is not only technically advantageous, but also brings economic and environmental
benefits. Taking the full life cycle cost into account, selecting high efficiency transformers is
normally an economically sound investment decision despite their higher purchase price.
BEE has developed a 5-star classification scheme for distribution transformers in the range from
25 to 200 kVA. The scheme is a co-operative venture between public and private organizations
that issues rules and recommendations under the statutory powers vested with it. The scheme
recommends replacing transformers with higher star rated units. Table 17-1 gives the energy
loss in Watts for various stars rated transformers with their rating varying from 16 to 200 kVA
and loading at 50% and 100% [5].
Table 17-1 : Total losses at 50% and 100% loading
1 star
2 star
3 star
4 star
5 star
Rating
MAXIMUM LOSS @ (in Watts)
kVA
50%
100%
50%
100%
50%
100%
50%
100%
50%
100%
16
200
555
165
520
150
480
135
440
120
400
25
290
785
235
740
210
695
190
635
175
595
63
490
1414
430
1335
380
1250
340
1140
300
1050
100
700
2020
610
1910
520
1800
475
1650
435
1500
160
1000
2800
880
2550
770
2200
670
1950
570
1700
200
1130
3300
1010
3000
890
2700
780
2300
670
2100
Power Factor Improvement

Power Factor is a measure of how effectively the current is being converted into useful work
output, and is an indicator of the impact of the load on the efficiency of the supply system.
A load with a power factor of one results in the most efficient loading of the supply network.
Whenever loads are connected to an AC supply, there is a possibility that current and voltage
will be out of phase.
Power factor correction is normally considered a key demand-side management option because
it is usually implemented by the electricity customer and leads to a reduction in their electricity
bills. However, it is a measure that reduces the power supplied by the utility and therefore it
may also be considered a supply-side management option. When power factor is less than
unity, the amount of useful power supplied by the generating plant at maximum output will be
less than its full capacity (in other words, not all the power supplied is turned into useful work).
This represents an inefficiency and therefore utility companies usually require customers to
achieve a power factor of at least 0.9 (sometimes 0.95). Those who fail to meet the minimum
will be charged a penalty on their bills to compensate for the various losses incurred by the
generator (e.g. losses in distribution cables and transformers).
In most plants a practical solution is to install capacitor banks at the main point of power
supply. Depending on the power factor, more or less capacitance can be connected at any
time. Slightly more efficient but costlier is installing individual capacitors around a facility to
correct the power factor in different parts of the network.
138

Smart Metering and Demand Side Management
Centralized monitoring of power consumption and control using smart meters shall bring
back the sick distribution companies to profit making. Managing peak load will be key factor
for the efficient distribution of power. The option is reducing demand through demand-side
management and variable pricing for peak and off-peak hours, which can be achieved through
Smart Grid. Smart Grid is the next generation electricity distribution system that delivers
electricity to consumers using two way digital technologies & ICT for efficient management
of consumers end uses of electricity as well as efficient use of the grid to identify and correct
supply-demand imbalances instantaneously. It also detects faults in a self healing process
that improves service quality, enhances reliability and reduces costs. Major enabling intelligent
technologies which are building blocks of the Smart Grid are given as under:
i.
Advanced Metering Infrastructure (AMI)

Advanced Metering Infrastructure (AMI) is system that measure, collect, transfer and
analyse energy usage and communicate with metering devices either on request or
on a schedule. AMI helps in bringing down the AT&C losses and facilitate in demand
side management & demand response, load disconnection / re-connection, Outage
Management, power quality management etc. Layout of AMI is shown in Figure 17-5.
Figure 17-5 : AMI Layout
Power Quality
Power quality is a measure of the fitness of electrical power fed into the
consumer devices. Without the quality power, an electrical device (or load)
may malfunction, fail prematurely, become economically unviable due to
losses or not operate at all. Harmonics generated by non-linear loads like arc
furnaces, battery charger etc. substantially increase the losses in distribution
transformers which increases operating costs even shorten transformer life.
Losses occurring due to poor power quality can be avoided through various
mitigating measures, such as Active Harmonic Filters, Static Var Compensators,
Dynamic Voltage Restorar, Surge Protectors, Uninterruptible Power Supply
(UPS) etc.
139

The energy consumption data from Distribution Transformer (DT) and Customers is sent
at one-defined duration to control centre which could be audited to regulate theft &
pilferages and also help in automatic billing. Through these meters various signals for
demand response, load dis/re-connection, operation of critical & non-critical loads alerts
can also be sent from control centre to consumers and Vice-versa. Tampering events
are reported on-line to control centre. With the deployment of AMI system, percentage
reduction in losses due to theft from meter can reach upto 100%.
ii.
Demand Side Integration

Demand Side Integration (DSI) is a set of measures to use loads and local generation to
support network operation / management and improve quality of power supply. Peak Load
management is one of the Smart grid initiative through which utility can reduce the peak
demand by way of variable intra-day tariff, load curtailment, demand response, device
control mechanism etc. The percentage reduction in losses from peak load management
depends upon magnitude of load shifts from peak to off-peak period. Refer Figure 17 6.
This plays significant role in reducing the purchasing cost of power. DSI is categorized
into two parts, namely Demand Side Management and Demand Response.
Figure 17-6 : Peak Load Management
iii.
Outage Management System(OMS)

Outage management system shall manage outages of elements by way of self-healing and
maintenance crew management. Also continuous monitoring of the system shall help in
proactive & preventive maintenance, which will in turn, reduces outages frequency and
duration. It would not only improve reliability of power supply but also sale of power
through same infrastructure may be increased for the benefit of utility and consumers.
The system is integrated with other systems, and ensures that as soon as the outage is
reported or detected, it predicts the fault location, identifies the consumers affected and
initiates consumer interaction, until the outage is restored. A schematic for the OMS is
shown in Figure 17-7. The percentage reduction in losses on account of deployment
of Outage Management System varies according to field conditions and feeder
configuration.
140
Figure 17-7 : Schematic of Outage Management System
Micro Grid
A micro grid is an integrated energy system consisting of interconnected loads
and distributed energy sources (DESs) in the form of rooftop Photo Voltaic
(PV) (solar), wind generation, biomass generation etc. that can be connected
to the grid or in an island mode. Micro grids are placed at low-voltage (LV) or
medium-voltage (MV) level.
Characteristics of micro grid are as follows:
Provides sufficient and continuous energy to a significant portion of the
internal demand
Control and optimization strategy for load generation balance
Can be islanded and reconnected with minimal service disruption
Can be used as a flexible controlled entity to provide services / optimization
for the grid or the energy market
Energy storage capacity
A schematic of Micro grid is
shown below:
Benefits of Micro Grid:
Quick deployment
Provide power supply to
remote area where extension
of grid supply is difficult
Environmental
incentive
by
helping
renewable
generation integration
141
17.7. Micro Grid

30% of the population in remotely located/rural areas still dont have access to electricity.
Through micro grids, a large no. of such population can have access to electricity in an efficient
and reliable manner. Most of the energy sources are located at few centralised locations
and from these areas; transmission of electricity at high voltage for few megawatts of power
to remote places through main grid is not always economical. In this direction, distributed
generation in the form of micro grid in remote areas plays a significant role.
17.8. Energy Efficiency Investment

Indias transmission and distribution loss has been more than that of world average (presently
21% against world average of 8%) for long and is decreasing but at a slower rate. Transmission
and distribution losses are below 7% in USA, Canada, European countries, China, South Korea
and many Asian countries [7]. An improvement in T&D losses by 10% is good enough to bring
India from power deficit to power surplus state. Even after improvement of 10%, the T&D losses
would continue to be well above the world average. Thus the target of 10% improvement in
T&D losses over next three years should be immediately taken up in the first Phase. The direct
saving of ` 35,000 - 40,000 Crore per annum can be achieved [8]. The energy saving potential
and investment in the sector is described in Table 17-2.
Table 17-2 : Monetary saving and investment potential in T&D sector
Sl. No.
Particular
Value
Present T&D loss
21%
Target of improvement in three years
10%
Saving [8]
` 35,000-40,000 crore
` 1,75,000-2,00,000 crore
17.9. Conclusions
Our country has been continuously suffering from power supply constraints including high
T&D losses. The metro cities and mega cities have very high potential of bringing down T&D
losses to the level of European countries and accordingly initiatives needs to be started from
high potential zones. CEA had also suggested that the T&D losses should be in the range of
8-15% which varies with intensity of load and the distances of the load centre. State Electricity
utilities are short of funds to take up such huge network improvement program and accordingly
Central Government has taken up the program under RAPDRP. However the tangible results
are still awaited. There is need for retrospection and target the high yield and low hanging
fruits to reap the benefits at faster rates. Government/ ESCOs shall invest in the project to
reduce AT&C losses and salvage the lost energy. Smart Grid offers a very attractive future in
smart metering of the energy sold. It largely helpsin demand side management and increases
the system reliability. The investment in T&D improvement can be recovered much faster
through saving in cost of energy. By bringing down the T&D losses uptp 10%, direct saving of
` 35,000 - 40,000 Crore per annum can be achieved in the sector with an estimated investment
of close to ` 2 lakh crore over five years.
142
17.10. References
1.
Electrification solutions for power networks, Sterlite, April 2011.
2.
The performance of state power utilities for the years 2008-09 to 2010-11, Power
Finance Corporation Limited, June 2012.
3.
T&D and AT&C losses in India, http://www.indianenergysector.com/power/t-d-and-atc-losses-in-india, Accessed on April 2014.
4.
Guide book for National Certification Examination for Energy Managers and Energy
Auditors Energy Efficiency in Electrical Utilities ,Bureau of Energy Efficiency, MoP,
Govt. of India.
5.
Distribution Transformers, BEE, Accessed from http://www.keralaenergy.gov.in on 25th

Aug 2014.
6.
Efficient electrical energy transmission and distribution, International Electro-technical

Commission, 2007.
7.
Power shortage and its impact on economy, Nakul R.C., Observer Research Foundation,
12th Feb 2013.
8.
Impact of power shortage on Indian economy, Fortune Institute of International

Business, 3rd Sep 2013.
143
144
Chapter
Sugar Industry
18
18.1. Introduction
Sugars are major form of carbohydrates and are found probably in all green plants. They
occur in significant amounts in most fruits and vegetables. There are three main simple sugars
sucrose, fructose and glucose. Sucrose is in fact a combination of fructose and glucose and the
body quickly breaks down into these separate substances.
The discovery of sugarcane, from which sugar as it is known today, is derived dates back
unknown thousands of years. It is thought to have originated in New Guinea, and was spread
along routes to Southeast Asia and India. The process known for creating sugar, by pressing out
the juice and then boiling it into crystals, was developed in India around 500 BC.
18.2. Production Process

The production process involved in sugar manufacturing is given in Figure 18-1. There are
basically five (5) steps involved in the production of sugar from sugar cane. They are explained
below.
i.
Juice Extraction from Cane
Juice can be extracted from cane either by milling or by diffusion process. A basic cane mill
consists of three grooved rollers. Prepared cane is squeezed between the rollers, thus forcing
the juice out of the fibre.
Figure 18-1 Sugar production Process [1]

Sugar Industry
145
Typical composition of cane:

15% dissolved matter (13% sucrose; 2% are other sugars-mainly glucose
and fructose)
15% fibre (insoluble)
70% water
A diffuser is an enclosed carrier through which a bed of prepared cane is slowly dragged,
while copious quantities of water and juice percolate through the bed to wash out the sucrose
-bearing juice.
ii. Purification of Juice
Juice is poured over a wire-mesh screen, or cascaded over an inclined wedge-wire screen to
remove the fibres contained in the juice. The juice is heated and lime is added to neutralise
the natural acidity. To improve the precipitate formation, flocculent is added. The settled
precipitate (mud), is pumped out of the trays of the clarifier and sent to the filtration station
where the juice is recovered. Then it is sent to the diffuser and filtered through the bed of
bagasse.
iii. Crystal growth
The clear juice must be concentrated to syrup by the removal of water by evaporation. To
improve the efficiency of the water removal, a process known as multiple effect evaporation
is used.
Multi Effect Evaporation (In sugar Industry)

Here juice is boiled in series in several vessels, with steam fed to vessel 1
only. Vapour from vessel 1 boils the juice in vessel 2, vapour from 2 boils the
juice in 3, and so on until vapour from the final vessel goes to waste.
The syrup produced by the evaporators is concentrated further and the sugar crystallises. This
is typically done in three boiling steps with three crystal/molasses separation.
A-sugar and A-molasses
B-sugar and B-molasses
C-sugar and C-molasses (final molasses)

iv. Separation of Crystals from Molasses
Massecuite (crystal/molasses mixture) leaving the crystallisers have now to be separated into
crystals and molasses. This is by the process of centrifugation which involves spinning massecuite
in a perforated basket; molasses come out of the perforations while sugar remains on the
basket. Water and steam are sprayed onto the crystals to wash off the remaining molasses. The
crystals separated are dried by passing heated air.
v.
Sugar Refining
In the refinery, raw sugar is the feed material. The sugar is dissolved (melted) and the colour
is removed by various clarification processes. The purified melt is evaporated and up to 4
crops of crystals are boiled from this. These crystals are combined to form the refined sugar
product.
146
Sugar Industry
For every 100 tons cane crushed, 30 tons of fibrous residues (bagasse), and
about 12 tons sugar and 4 tons molasses are made.
18.3. World Sugar Industry

Sugarcane is the worlds largest crop. It is cultivated on about 23.8 million hectares, in more
than 90 countries, with a worldwide harvest of 1.69 billion tonnes. The world demand for
sugar is the primary driver of sugarcane agriculture. Cane accounts for 80% of sugar produced
[2]. The top 10 sugar producing countries in world is given in Table 18-1.With abundant
supplies continuing to weigh on the market, global consumption is forecast to rise, as demand
in India and China expands. Figure 18-2 gives the global sugar production and consumption
trend during 2009-15 [3].
Table 18-1: Top ten centrifugal sugar producing (raw value)
countries in the world 2013-14
Sl. No.
1
2
3
4
5
6
7
8
9
10
11
Country
Brazil
India
EU
China
Thailand
USA
Mexico
Pakistan
Australia
Russia
Gautemala
Production (x1000 tonnes)

37800
27045
16100
14346
11390
7693
6731
5215
4300
4400
2852
Figure 18-2 : Sugar production and demand 2009-15

Sugar Industry
147
18.4. Indian Sugar industry

Sugar industry of India is one of the oldest and few industries that have successfully contributed
to the rural economy. It has done so by commercially utilizing the rural resources to meet the
large domestic demand for sugar and by generating surplus energy to meet the increasing
energy needs of India. In addition to this, the industry has become the mainstay of the alcohol
industry. The Indian domestic sugar market is one of the largest markets in the world, in
volume terms.
India is the worlds second largest sugar producer after Brazil, with 5 million hectares & 60
million cane farmers and dependants. Indian sugar industry worth ` 80,000 crore [4].
Figure 18-3, it is understood that India produced 270.45 lakh tonnes of centrifugal (raw value)
sugar during the period 2013-14. It is also envisaged that the production increases by 9 lakh
tonnes to reach 279 lakh tonnes during 2014-15 [3].
Figure 18-3: Centrifugal Sugar production (raw value) in India during 2009-15
18.5. Cogeneration in Sugar Industry

By cogeneration, most sugar industries are designed to be self-sufficient with sugar as the
primary product. The sugar industry by its inherent nature can generate surplus energy in
contrast to the other industries, which are only consumers of energy. With liberalization and
increased competition, the generation and selling of excess power to the utility, offers an
excellent source of revenue generation to the sugar plants. This is referred to as commercial
cogeneration and has been only marginally tapped in our country.
Cogeneration in sugar industry involves the production of electricity as well as alcohol. Bagasse,
the by-product of the sugar manufacturing process, is used as the fuel to generate high pressure
(for generating electricity by running a turbine connected to a generator) and low pressure
steam (for process requirement). The electricity produced can be utilized for the processes in
the sugar industry and the rest can be fed to the grid. Alcohol is produced by the fermentation
of molasses. The flow chart of sugar production process along with cogeneration is shown in
Figure 18-4.
148
Sugar Industry
Figure 18-4 : Sugar production process flow chart (source: isma)
In India, interest in high-efficiency bagasse based cogeneration started in the 1980s when
electricity supply started falling short of demand. High-efficiency bagasse cogeneration was
perceived as an attractive technology both in terms of its potential to produce carbon neutral
electricity as well as its economic benefits to the sugar sector. The flow chart showing energy
generation from bagasse is given in Figure 18-5.
Figure 18.5: Electricity generation from Bagasse
In this direction, the State Government provides 5% of the capital expenditure on the cogeneration
project while the factory concerned puts in an equal amount. The Sugar Development Fund of
the Union Government provides 30% funding of capital investment and the remaining is secured
through institutional funding. An investment of around ` 4.50 crore per MW is needed to start a
cogeneration plant in a cooperative factory [5].
Sugar Industry
149
18.6. Energy Consumption in Sugar Industry

The main sources of energy in a sugar industry are steam and electricity. The energy consumption
in a sugar industry can be classified under
Energy consumption by process equipment
Energy consumption by cogeneration auxiliaries

The size of Sugar Plant is usually defined in terms of Tonnes of Cane per Day (TCD). As per
TERI, the energy consumption in sugar industry ranges from 22 37 kWh/TCD. The steam to
cane ratio varies from 26 45%.
18.7. Saving Potential and Investment

According to IREDA, the energy consumption in Indian sugar mills ranges from 0.7 to 0.87 GJ/
tonne of cane against a world average of 0.5 to 0.6 GJ/ Tonne of cane crushed. The energy
saving potential in sugar industry is estimated as in Table 18-2.
Table 18-2 : Energy saving potential in sugar industry
Sl. No.
Particular
Value
Envisaged sugar production during 2014-15
250 lakh Tonnes
Cane required for 1 kg sugar production (approx.)
8.3 kg
Cane crushed in 2014-15
2075 lakh Tonnes
4
5
Average energy consumption per tonne cane crushed in 0.785 GJ/Tonne

India
World average energy consumption per tonne cane crushed 0.55 GJ/Tonne
Energy saving potential per tonne cane crushed
0.235 GJ/Tonne
Total energy saving potential (electrical equivalent)
13.5 billion kWh
Monetary Saving @ ` 5 per kWh
` 6,750 crore
` 33,750 crore
18.8. Conclusion
Indian sugar industry is one of the oldest and more than 60 million people are depending
on it. The sugar production in India stood 243 million tonnes during 2013-14 making the
country second in the world. The energy efficiency potential in the sector is vast such that
there is an achievable reduction in energy usage of more than 20%. Few of the major energy
efficiency applications in the sector is found to be in areas of co-generation, heat recovery,
centrifuge, and VFD. There is a total saving potential of about 13.5 billion kWh per year with
an investment of about ` 33,700 crore.
18.9. Reference
1.
2.
3.
4.
http://www.psisugar.com/EN/Our-Factory/Production.html.
25 biggest sugar-producing countries in the world, rediff.com, February 19, 2013.
Sugar: World Markets and Trade, USDA, May 2014.
Indias Sugar Policy and the World Sugar Economy FAO International Sugar Conference,
Fiji, 2012, August 2012.
5. Bagasse and Cogeneration of Renewable Energy, Birla Sugar, http://www.birla-sugar.
com/Our-Products/Bagasse-Cogeneration-Renewable-Energy, accessed on 16 Sep. 2014.
150
Sugar Industry
Chapter
Indian Railway
19
19.1. Introduction
Railways provide the cheapest and most convenient mode of passenger transport both for
long distance and suburban traffic. The Indian Railways (IR), as one of the pillars of Indias
infrastructure, has a symbiotic relationship with the countrys industry and economy. The Railways
play a crucial role in the transport of coal, iron ore and raw materials for the manufacturing
industry, fertilizers, cement and steel products and food-grain, and in the movement to and
from the major ports, as well as the transportation of goods & people. Transport being a
derived demand, any growth in the economy fuels the demand for transport.
Indian Railway network is one of the worlds largest of its kind owned and operated by the
Government of India through the Ministry of Railways. As on march 31st 2013, it comprises
89,236 km of track over a route of 65,436 km and 7,172 stations.During the period of
201213, IR carried 8,421 million passengers and 1014.45 million tons of freight [1]. The
railway Map of India is given in Annexure VIII.
Locomotives in India consist of electric and diesel locomotives. Biodiesel locomotives are also
being used on experimental basis. Steam locomotives are no longer used, except in heritage
trains. In India, locomotives are classified according to their track gauge, motive power, the
work they are suited for and their power or model number.
Indian Railways consumes about 17 BUs (1.8%) of total electricity produced in India during
2013-14. In this sector, both traction and non-traction usage, there are large potential for
energy saving through energy efficient measures.
19.2. Indian Railways Infrastructure

Indian Railways holds over 244,731 Freight Wagons, 48,037 Passenger Coaches and 9,956
Locomotives (43 steam, 5,345 diesel and 4,568 electric locomotives). As of 31 March 2013,
20,884 km of the total 65,436 km route length was electrified. Since 1960, almost all electrified
sections on IR use 25 kV AC traction through overhead catenary delivery. The rolling stock in
Indian Railway as of 2012-13 is given in Table 19-1 [1].
Table 19-1: Rolling stock (in units)
1.
Locomotives
2.
Coaching stock
3.
Wagons
Indian Railways
Steam
Diesel
Electric
Passenger carriages
EMU/DMU/DHMU
Rail cars
Other coaching vehicles
Wagons
43
5345
4568
48037
9184
35
6614
244731
151
19.3. Global Scenario

As per IEA 2013 report on Global Land Transport Infrastructure Requirements- Estimating
road and railway infrastructure capacity and costs to 2050, passenger and freight travel is
expected to double over the period of 2010-2050. In the Non-OECD regions alone, the
growth is expected to be 90%. Under the 2012 edition of Energy Technology Perspectives
(ETP)-2012 4DS scenario, it is reported that the world needs to add a minimum of 3,35,000
km rail track and unsurprisingly the largest expansions in India & China.
The 4C Scenario (4DS) takes into account recent pledges made by countries
to limit emissions and step up efforts to improve energy efficiency. It serves as
the primary benchmark in ETP 2012 when comparisons are made between
scenarios. Projecting a long-term temperature rise of 4C, the 4DS is broadly
consistent with the World Energy Outlook New Policies Scenario through
2035 (IEA, 2011).
However, during the past decade, rail-track development is less remarkable than roadway infrastructural growth. Figure 19-1 shows the rail-track length globally during the period
2000-09.
Figure 19-1 Growth in Rail track-km during 2000-09
19.4. Energy Consumption

Indian Railways mainly runs on electricity or diesel. As of 31st March 2013, locomotives in
India consume nearly one thousand tonnes of coal, 26,99,616 kilo litres of diesel oil and
13,853 million kWh of electricity[1]. The breakdown of different fuels in the last few years is
given in Table 19-2.
Table 19-2 Energy consumption by Indian Railways since last three years
Fuel
2009-10
2010-11
2011-12
Diesel (in kilo-litres)
25,16,044
27,05,084
26,99,616
Electricity (in million kWh)
13,571.53
13,449.98
13,853.44
Coal (in thousand tonnes)
152
Indian Railways
19.5. Energy efficiency initiatives by IR

Indian Railways launched a portal, RAILSAVER, on 15 April 2014 with an aim to improve
energy efficiency in Indian Railways. This initiative in form of RAILSAVER will facilitate railways
in saving energy up to 15% by the year 2020, through improved energy efficiency measures as
laid down in Railways vision document.
The portal is being executed by Indian Railways under programmatic framework of UNDP
through Global Environmental Facility (GEF) funding of US $ 5.2 million (approx. ` 31.2 crore).
The project envisages defining framework for energy conservation initiatives on Indian Railway
system by introduction of energy efficient technologies and adoption of various measures in
traction and non-traction sub-sectors.
Some of the energy efficiency initiatives taken by Indian Railways are as follows.
Adoption of 3-phase propulsion system for Electric and diesel locomotive and AC Electric
Multiple Units (EMU).
Adoption of Static converter (Efficiency 93%) in place of Rotary converter (Induction

generator) (Efficiency 83%) for Auxiliary panel supply.
Installation of Power factor correction equipments at Traction Substation.
Energy Audit of major work centres like workshops, traction substation, production units,
diesel loco sheds etc.
Sourcing at least 10% of energy used from renewable sources such as solar power and
biomass. e.g. Use of Solar Energy for Manned Level Crossing (6500 nos.) and Road side
stations (200 nos.)
Use of Biodiesel for traction
Introduction of new suburban trains in Mumbai with regenerative braking features saving
up to 35-40% of the energy.
Induction of light-weight stainless steel coaches with enhanced passenger carrying

capacity and new designs of freight stock with higher payload to tare ratio.
Increased production of high-horse power, fuel-efficient diesel locomotives with plan to

switch over completely to the manufacture of these locomotives at Diesel Locomotive
Works (DLW).
Energy audits to improve energy efficiency on thousands of its stations and offices and
adoption of LED lighting and Energy Conservation Building Code (ECBC).
Procurement of only 3-star or higher-rated products for achieving energy efficiency.
Tare Weight: Average weight of an empty wagon
19.6. Energy Efficiency Funding

Asian Development Bank (ADB) and the Government of India have signed a USD 150 million
(` 900 crore) loan for 1st tranche of Railway Sector Investment Program aimed at improving
rail freight services and passenger transport routes. The program will help India improve rail
services along some of its busiest freight and passenger transport routes, providing doubletrack for about 840 kilometers of rail routes and electrifying about 640 kilometers.
Indian Railways
153

The program will
(i)
Reduce fuel consumption and enhance energy efficiency
(ii)
Reduce pollution
(iii) Enhance railway safety

(iv) Increase the line capacity, benefiting consumers and producers of goods and services
(v)
Improve staff productivity
(vi) Incorporate innovating financing modalities by pursuing carbon credits under UNFCCC
ADB would also provide a program linked technical assistance of USD 300,000 (approx. ` 1.8
crore) to promote sustainable transport modes by monitoring carbon emission reductions from
shifting bulk goods from road to rail [2].
19.7. Investment Opportunity

The Energy Efficiency and Conservation Program (EECP) aims at progressively introducing or
expanding the adoption of a number of traction and non-traction energy efficiency technologies
and measures in the railways system to reduce energy consumption.
Few of the energy consuming appliances used in Indian Railways where energy saving activities
can be explored are as follows.
Cables
Power Converter
Breakers
Batteries
Transformers
Pumps
Luminaries
Solar Panel
LT switches including MCB
Solar Water Heater
Air Conditioning equipments
T-5 Tube Lights
Traction Motor
Induction Motor
Air compressor
DG Set
Some of the energy efficiency measures that can be adopted from the energy efficient countries
in both traction and non-traction systems, where it has been successfully implemented, are
listed below [3].
Traction
154
Installation of GPS-based driver advice system (GPSDAS) and Energy Management

System (EMS) to ensure safe and energy efficient driving
Installation of microprocessor controlled air-conditioning systems for AC couches
Installation of roof solar panels in coaches to generate electricity
Conduction of energy audits of rolling stock (locomotives) and coaches
Introduction of HOG (Head On Generation) to provide on-board power through traction

winding
Use of regeneration of electric locomotives energy during train operation by using braking
energy
Adoption of 3-phase IGBT-based technology with regenerative features for EMUs and
locomotives
Indian Railways
Adoption of design improvement measures on rolling stock units to improve payload-totare weight ratio
Adoption of design improvement measures on rolling stock units such as air-friction

reduction measures on sides, top bogies, under-gear and aerodynamic features
Introduction of IGBT-based PWM static converters for auxiliary supply to coaches
Introduction of a traction-effort metering system to ascertain the brake binding
Non-Traction
Installation of Energy Management System (EMS) for pumping installations
Installation of Building Management Systems (BMS) for stations, workshops and railway
offices
Energy audits of stations, workshops and railway offices, etc.
Support to energy testing laboratories
Introduction of renewable energy systems (e.g. solar water heating systems)
Introduction of solar photovoltaic modules to electrify level crossing gates & gang huts
Introduction of LED lighting systems for general illumination
Introduction of energy consumption and life-cycle cost among the criteria for
procurement
Table 19-3 has been brought out considering 15% of energy saving envisaged in the rail sector
by 2020.
Table 19-3 : Energy Saving Potential in Railway
Particular
Coal
Diesel
Electricity
Consumption
1000 tonnes
2.7 billion litre
13.8 billion kWh
Saving (@15%)
150 tonnes
0.405 billion litre
2.07 billion kWh
Energy Equivalent
150 tce
0.34 million toe
0.396 million tce
Monetary saving (`)
9 lakh
16.2 billion
1,035 crore
Investment @ 5 year pay

back (`)
45 lakh
81billion
5,175 crore
19.8. Conclusion
Railways are one of the cheapest modes of transport on which the Indian economy highly
depends. Rail is 2.5 to 4 times more fuel efficient compared to road transport. The Indian
railways is planning to upgrade the system with dedicated freight trains and high-speed corridors
- both have the potential to improve the systems efficiency and cut down emissions. Besides,
the department is expected to save at least 10% energy using solar power and biomass. Indian
Railways is also conceptualizing increasing efficiency in traction and non-traction systems to
save up to 15% energy. The traction system currently accounts for 87% energy. Also, one of
the most critical aspects missing in Indian railways is that there are no emission standards for
locomotives. As there is no regulatory body to look over the emissions, the result is that much
of the locomotives still in use are not the best. At 15% energy saving potential envisaged, an
estimated investment potential of more than ` 13,000 crore is identified in the sector.
Indian Railways
155
19.9. References
156
1.
http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/
IRSB_2012-13/PDF/Statistical_Summary/Summary%20Sheet_Eng.pdf.
2.
ADB Extends $150 million loan to Develop Indias Railway System, Ministry of Finance,
Press Information Bureau, Government of India.
3.
Improving Energy Efficiency in the Indian Railways System, United Nations Development
Programme, Feb 2011.
Indian Railways
Chapter
Energy Efficiency Initiatives

in India
20
20.1. Introduction
Various states in India have taken initiatives towards energy efficiency measures schemes,
policy framework and regulations etc. These initiatives not only cover energy efficiency and
renewable energy generation but also stress on close monitoring for proper implementation.
An effort has been made to capture the major initiatives taken by the central government and
various state governments in India, to have an overall idea of energy efficiency and renewable
energy implementations.
20.2. EE Initiatives by Central Government

Various laws and regulations have been already introduced in India regarding energy efficiency.
Few of them are mentioned below.
Indian Green building Council (IGBC)
The Indian Green Building Council (IGBC), part of the Confederation of Indian Industry
(CII) was formed in the year 2001. The vision of the council- To enable a sustainable built
environment for all and facilitate India to be one of the global leaders in the sustainable built
environment by 2025.
A green building is one which uses less water, optimizes energy efficiency, conserves natural
resources, generates less waste and provides healthier spaces for occupants, as compared
to a conventional building. Green Building rating system by IGBC focus on five major areas
e.g, sustainable site development, energy efficiency, water efficiency, building materials and
wastage, indoor environment quality and innovation in designs. Energy efficiency guidelines
require the buildings to adopt effective equipment for lighting, water pumps, air conditioning,
etc.
Energy Conservation Building Code (ECBC)
ECBC was launched by Ministry of Power, Government of India in May 2007, as a first step
towards promoting energy efficiency in the building sector. BEE is promoting ECBC awareness
and voluntary adoption through training and capacity building programmes, pilot demonstration
projects, and identifying steps for compliance check and monitoring of ECBC.
The ECBC provides design norms for:
Building envelope, including thermal performance requirements for walls, roofs, and
windows
Lighting system, including day lighting, lamps and luminaries performance requirements
Energy Efficiency Initiatives in India
157
HVAC system, including energy performance of chillers and air distribution systems
Electrical system
Water heating and pumping systems, including requirements for solar hot-water systems
During the development of ECBC, analysis conducted through energy simulation indicated
that ECBC-compliant buildings use 40 to 60% less energy than similar buildings being designed
and constructed at that time.
GRIHA (Green Rating for Integrated Habitat Assessment)
With the entire lifecycle of a building from construction to operation and then demolition
consuming various resources like energy, water, materials, etc., besides emitting wastes,
GRIHA attempts to minimize resource consumption and wastage, thereby environmental
impact through enhanced assessment tools. Reduced resource consumption and pollution,
and enhanced user productivity are the advantages extended by the adherence of GRIHA.
BEE Star Rating
Government of India (BEE, Ministry of Power) introduced the Standards and Labelling Program
in May 2006. Under this program the manufacturers are required to place a label showing
how much electricity the appliance will consume under certain conditions. BEE develops
policies and strategies that reduces energy intensity of the Indian economy. BEE star rating of
office buildings conduct energy audit to analyze energy efficiency and track improvements in
comparison to other buildings. The star can vary from 1 to 5, where 5 being the best rating.
PAT
The scheme is designed and implemented by the Bureau of Energy Efficiency (BEE), under the
Ministry of Power, Govt. of India.Itis a market based mechanism to enhance cost effectiveness
of improvements in energy efficiency in energy intensive large industries and facilities, through
certification on energy savings that could be traded.
RAILSAVER
Indian Railways launched a portal, RAILSAVER (https://www.railsaver.gov.in/), in April 2014
with an aim to improve energy efficiency in Indian Railways. This initiative will facilitate
railways in saving energy up to 15% by the year 2020, through improved energy efficiency
measures as laid down in Railways vision document.
20.3. EE Initiatives by States

Other than the programmes activated by the central government, different states in India have
taken their own leap towards saving energy. Various energy efficiency and energy conservation
measures undertaken by the Indian States are briefly explained in following subsections.
Andhra Pradesh
The state recently adopted an Energy Conservation Building Code (ECBC) for large commercial
and public buildings and major retrofits. The ECBC is expected to reduce energy consumption
by about 40-60%.
The Andhra Pradesh Solar Power Policy 2012 aims in developing and promoting solar
power generation in the state and attract investment in solar power generation projects. The
158

government has also introduced Net Metering but as of now it is permitted but only for 3
Phase connections.
Arunachal Pradesh
Arunachal Pradesh consumes firewood largely (three times national average). Due to decrease
in firewood availability and increase in its price, the people themselves have developed energy
efficient chulhas. It could produce enough warmth with few scraps of firewood.
Department of Power, Government of Arunachal Pradesh has proposed schemes under
Enhanced Energy Efficiency Mission. These vulnerability reduction measures are proposed
with the estimated cost of `179 crore mainly in terms of replacement of old technology by
new energy efficient technologies.
Assam
The Chief Electrical Inspector-cum-Adviser, Government of Assam has been made the State
Designated Agency of the Energy Conservation Act, 2001 by the Government of Assam to
coordinate, regulate and enforce provisions of the EC Act within the State of Assam.
Many activities are taken in the state to cater the problems of energy deficit and to improve
energy efficiency. Most of the street lights in the Guwahati City have been fitted with automatic
switching devices to conserve energy. The Railways Authority has also fitted efficient fluorescent
lamps in staff quarters in place of incandescent lamps to conserve energy. The Government of
Assam has made the use of energy efficient lamps mandatory in all Govt. buildings/ Institutions/
Boards/ Corporations as well as directed all Govt. departments and agencies to adopt design of
new buildings basing upon energy conservation concept as per ECBC norms [ASDA].
Many of the existing large buildings have been informed to adopt energy efficiency measures
by using energy efficiency lamps and other appliances. The Electricity distribution companies
have been requested to print energy saving tips on the reverse side of monthly energy bills for
benefit of electricity users. As an awareness programme, cinema halls and multiplex halls were
requested to display energy conservation messages using slide shows at intervals [ASDA].
Chhattisgarh
Chhattisgarh has a separate department to look after the energy conservation measures. The
Govt. of Chhattisgarh released the solar energy policy. This policy is aimed to achieve a targeted
solar power generation capacity between 500 MW to 1,000 MW by March 2017. The policy
addresses objectives like encouraging, developing and promoting solar power generation
along with enhancing private sector participation; promotion of off-grid solar application and
encouraging decentralized distributed generation system.
Delhi
Delhi has Energy Efficiency and Renewable Energy Management Centre for looking after the
energy conserving measures. Many steps have been taken by the National Capital Region in
view to implement the energy conservation measures.
In the state, Energy Conservation Building Code (ECBC) in all government buildings and in all
new building projects is made mandatory. CFLs and electronic chokes are made mandatory in
Govt. Building/Govt. aided institution/Boards, Corporations. The energy efficiency measures
have been undertaken primarily in the heating, ventilation and air conditioning systems,
lighting system and other energy efficient measures of station buildings.
159

To effectively harness the solar energy, use of Solar Water Heaters in different categories
of buildings like Industries, hotels, hospitals, canteens, corporate and residential building
having area of 500 sq. meters or above, Government buildings, etc. is made mandatory. In
the agricultural sector, use of ISI marked Motor pump sets, Power capacitor and Foot/Reflex
valves is made mandatory. There is also provision of subsidy for promoting battery operated
vehicles.
Delhi Electricity Regulatory Commission (DERC) has taken great leap in the renewable energy
sector by announcing regulations for net metering of renewable energy. The regulations outline
how people can generate renewable energy in their premises, and then reduce their electricity
bills by the amount of power they supply to the grid.
Goa
Since the State of Goa does not generate its own electricity, the challenge before the Government
is not only to meet the ever growing demand for power but also to progressively increase the
share of renewable sources in the generation portfolio - mix so as to achieve overall energy.
As per the policy, there will be a capital subsidy of 30-50% for solar lights and pumps. Also
Green cess would be charged on polluting industries to pay for green power. According to
the policy, all new government/local body buildings with more than 200 m2 roof top area
shall necessarily install solar rooftop PV units. It is also proposed to generate 50 MW of power
by 2020 utilizing both solar and wind. The promotion of solar water heating system in also
pronounced in the policy. 10000 units of 100 LPD hot water solar thermal systems are to be
installed by 2020 [16].
Gujarat
Gujarat, has GEDA as the State Nodal Agency (SNA) and the State Designated Agency (SDA)
for the promotion and popularization of alternative and energy efficient technologies. The
state has formulated policies which include solar energy, bio energy and wind energy.
The State has already taken energy efficiency initiatives at an investment cost of ` 1.28 crore
resulting into savings of ` 49.6 lakh per year (or 1683 MWh). These initiatives include,
160
Monitoring the Transformer load and de-energizing three 1000 kVA Transformers for
3 months during the winter season.
Demonstration project on Energy Efficient LED Lighting Systems for the Ministers Enclave,
Gandhinagar.
Replacement of HPSV 250W lights in the Ministers Enclave with LED-based lights of
75 W.
Re-lamping the Chh Road with PS-MH200W lamps and ballasts.
Replacement of existing HPS/HPM luminaries on the Chh and J Roads Crossing with PSMH200W luminaries.
On J Road, replacement of existing HPM 250W luminaries with PS-MH200W luminaries

and HPM400W luminaries with PS-MH200W.
Replacement of old, inefficient water-pumps at Charedi Water Works in Gandhinagar

with better designed, energy-efficient pumps.
Replacement of conventional 100 Watt lamps with 14 W T5 tube-lights has resulted in

yearly savings of 2.35 million kWh.

Haryana
As a motivational step in energy efficiency, Haryana Renewable Energy Development Agency
(HAREDA) awards to industrial, commercial and educational institutes who have excelled
in adopting the various energy conservation measures in their units to help save energy. The
amount varies from ` 25,000 to ` 2 lakh.
The government had announced that it had installed in State Government buildings, 65,630
compact fluorescent lamps (CFLs) and 33,461 energy-efficient T-5 tube-lights at a cost of
` 167 Crore. The PWD department had also installed 13,650 CFLs and 6,065 T-5 28W energy
efficient tube-lights. Similarly, the Haryana Urban Development Authority had installed 325
CFLs and 4,870 energy-efficient tube-lights. Moreover, 448 CFLs and 2,564 T-5 tubes had
been installed at the new and old Haryana Civil Secretariats in Chandigarh [The Hindu].
Haryana Government provides incentives such as rebates on electricity bill and capital subsidy
to the users on use of Solar Water Heaters. Other than this MNRE also provides subsidy and
loan on the solar water heating systems. Under Solar Lantern Programme, HAREDA has been
providing solar lantern of 10 watt capacity. The agency is promoting Energy Efficient Building
Designs and Building constructions with optimum use of solar energy and other forms of
ambient energy in energy management.
Himachal Pradesh
Himachal Pradesh has introduced solar passive building technology for the design and
construction of Govt. and Semi Govt. buildings on large scale. It utilizes the orientation of
building for the availability of solar energy at the site for natural heating or cooling of the
building resulting in saving large amounts of fossil fuels and electricity.
Solar House Action Plan for Himachal Pradesh, formulated and coordinated by the State
Council for Science, Technology and Environment, H.P. was approved in 1994, under which it
has been made mandatory that all Govt. and Semi Govt. buildings be designed and constructed
as per Solar passive housing technology in a phased manner. By the Policy on solar passive
housing,solar passive building technology has been made mandatory.
Jammu and Kashmir
Jammu & Kashmir energy Development Agency (JAKEDA) provides solar home lighting systems
and solar lanterns to the general masses of the state under different programmes. By the end
of 2020, it is targeted to provide 20,000 MW of power for Jammu-Kashmir from solar energy
alone [11]. As a part of it, State Government has signed a MoU with MNRE on March 2014 to
implement solar power projects of capacity 7500 MW in Leh / Kargil area [12].
Jharkhand
Jharkhand government has a separate energy department and has implement Energy policy,
2012, looking after various energy conservation schemes in Jharkhand. As part of the energy
policy, the state has planned the Renovation and Modernization of JSEB owned old power
generation units, encourages Hydel power generation and promotion of non-conventional
energy (wind, solar, geothermal etc.).
The state has proposed many reforms in the field of solar, wind and biomass. The government
under the state plan subsidizes solar lanterns since the requirement of lanterns is heavy in
Jharkhand.
161

Karnataka
The government of Karnataka has made it mandatory that all utilities consuming 500 kW
and above should compulsorily conduct energy audit. Government under section 18 of the
EC Act 2001 has mandated for use of Solar Water Heating Systems and CFLs in Government
buildings, aided institutions, Boards and Corporations. It is also mandatory to install Solar
Water Heaters in residential and commercial buildings having plinth area of more than 600 sq
ft. As a rebate, ESCOs provide ` 0.50 per unit, subject to a maximum of ` 50 per month for
installation of solar water heaters 10].
In the lighting sector, BelakuYojana is being implemented to replace Incandescent bulbs by
CFLs to save Energy. In agriculture sector, the use of BEE standard energy efficiency pumps is
made mandatory.
Kerala
Kerala has a separate body for overseeing energy conservation activities at the state level called
the Energy Management Centre (EMC) which is under the Department of Power, Government
of Kerala. The agency was established in 1996 with an objective to improve energy efficiency in
State, promotion of energy conservation, encouraging technology development and awareness
creation on energy efficiency. [1]
The government has made energy auditing mandatory for all high-tension/extra-high-tension
industries and commercial and non-domestic high rise buildings having more than 4 floors or
more than 15 m height from ground level and is to be done once in every three years [2]. Energy
Clinic is another programme by the Govt. of Kerala which aims in energy conservation with the
help of women as agents to create energy conservation awareness among rural housewives.
It is estimated to save 10-15% of energy by the process. It is also made mandatory that large
industries having 2000 kVA and above as connected load, should produce at least 5% of their
requirement through captive power plants using Renewable Energy Sources [3].
To achieve comprehensive energy efficiency improvement in the transport sector, EMC in
association with PCRA has designed the Transport Clinic Programme. This is a structured
training programme for drivers which include practical driving tests on roads before and after
the classroom sessions. [1]
EMC invites applications every year for energy conservation awards instituted by the
Government of Kerala. The government decided to give awards in six different categories
viz. large-scale enterprises, medium-scale enterprises, small-scale enterprises, non-profit
organizations, individuals and for R&D.
The government had launched a Rooftop Solar (Off grid) Programme which involved installation
of 10,000 off-grid solar systems across the State. Net metering is proposed in Kerala which
is likely to be implemented soon. Solar Water Heating Systems are made mandatory in all
Lodges and Hotels having 10 or more rooms and in hospitals with 20 beds or more. Energy
efficient devices such as, Improved Community Chulhas, gasifiers, etc. are made mandatory
in all hotels, hostels and schools with noon meal scheme and in all industries where firewood
is used as a fuel [6].
Madhya Pradesh
Government of Madhya Pradesh (GoMP) has notified the final promotional policies for all
the four Renewable Energy technologies (Solar, Wind, Small Hydro and Biomass), Madhya
162

Pradesh Energy Conservation Fund Rules and other directives for the efficient use of energy
and its conservation in state.
Maharashtra
The Government of Maharashtra has notified Maharashtra Energy Development Agency
(MEDA) as the designated agency to co-ordinate, regulate and enforce the provisions of
the Energy Conservation Act and implement schemes under the said Act within the State.
This is a significant step for MEDA, which as the State nodal agency, now has the additional
responsibility of promoting and developing energy efficiency, besides facilitating renewable
energy development.
In order to guide on Energy Conservation Policy matter to MEDA, Government of Maharashtra
has constituted State Level Energy Conservation Committee under chairmanship of Principal
Secretary (Energy) and 15 members from various government department and energy sector.
The MEDA Strategic Energy Conservation Plan has been developed as a blueprint for energy
conservation activities in the State of Maharashtra, consistent with MEDAs responsibilities as
the designated agency for the implementation of the Energy Conservation Act 2001 and the
needs to develop mechanisms to balance the States electricity supply and demand. The major
objectives of the Strategic Energy Conservation Plan are to:
Achieve substantial reductions in energy consumption and peak load
Balance energy supply and demand with maximum resource efficiency and reduce
power shortages
Create macro-economic and fiscal benefits to the state
Implement cost-effective programs to enhance Energy Efficiency (EE) and Load

Management (LM)
Provide consumer information and education
Promote private sector activities for implementation of energy conservation programs
Protect and enhance the local, national and global environment
Reduce long-term cost of electricity
Reduce capital requirements for capacity expansion
Manipur
Government of Manipur declared Manipur State Designated Agency (MSDA) as the State
Designated Agency (SDA) to co-ordinate, regulate and enforce the Energy Conservation Act
2001 within the state of Manipur. The role of MSDA is to create general awareness among
masses, benefits of Energy Conservation measures and also to institutionalize the energy
efficiency project implementation in industry and domestic/residential sectors including
Government buildings and commercial buildings.
MSDA has carried out many Energy Efficiency Promotional activities in the state of Manipur.
They advertise Energy Saving Tips in ATHOUBA, a local Journal. They have also requested the
Imphal Municipal Council to promote the use of CFLs and high efficient electrical and electronic
machines. The Director of Education is being requested to include Energy Efficiency a part of
school curriculum. The agency also prepares action plan for Energy Efficiency. MSDA has
163

published a calendar on Energy Efficiency and booklets and posters are published throughout
the state.
Meghalaya
Meghalaya during the period of 2005-06 had a proposal for heat recovery urban waste with the
objectives to create conducive conditions and environment, with fiscal and financial regime,
to develop, demonstrate and disseminate utilization of wastes for recovery of energy and to
harness the available potential of MSW-to-energy by the year 2017.
Meghalaya has also implemented a scheme on the promotion of Solar Thermal systems for
air heating/ steam generating applications, Solar Buildings and Akshay Urja Shops during the
financial year 2005-06 with the objective to accelerate wide spread use of solar thermal systems
for air heating and steam generating applications, as well as used of solar passive techniques
in building design along with a combination of financial and promotional incentives. Under
the solar building programme, solar buildings are constructed based on the techniques of solar
passive design with a view to provide comfortable living and working conditions, both in winter
and in summer. Other than these, the government has been promoting the establishment of
Aditya Solar Shops in Major cities of the country since 1995 with a view to make solar energy
products easily available towards energy conservation and to provide easy after sales repair
services.
Mizoram
In order to fulfil the mandates of EC Act, the State of Mizoram has chosen the Electrical
Inspectorate as the Designated Agency. The agency promotes use of energy efficient
technologies, equipment, processes, and devices. Reducing energy consumption in Domestic
Sector by way of educating the users, promoting ECBC and reduction of GHG emission are
also in the agenda.
ZEDA had installed four 25 kWp solar PV power plants at various charitable homes and
hospitals. ZEDA had also distributed 9073 solar lanterns, 6201 SHL systems and 40 solar
power packs to the un-electrified and rural villages and NGO homes with the help of the fund
received from MNRE and the State Government. Aizawl has been declared by MNRE as a
Solar City.
Nagaland
Chief Electrical Inspectorate, under the Department of Power, Government of Nagaland, is the
Nagaland State Designated Agency for implementing the Energy Conservation Act, 2001 in
the state. The agency is responsible to fulfil all the mandates of the EC Act and to promote the
need for energy efficiency. It had conducted quiz programmes, and awareness programmes
relating to energy saving measures. The implementation of energy efficient street lighting in
Mokokchung Town created a positive impact on the public. In Rottomi village, NSDA had
replaced three to four light points of each house with LED along with all the street luminaries
[NSDA]. The NRE department had electrified 11 villages through solar home lighting, solar
streetlights.
Orissa
Engineer in Chief Electricity-cum-PCEI Orissa has been notified as State Designated Agency
(SDA) for the State of Orissa for implementation of EC Act-2001. The organization also acts as
an advisory to State Government on matter relating to Policy, implementation and monitoring
164

of electricity related activities in the State. Guided by relentless focus on energy conservation
and energy efficiency imperatives, SDA, Orissa constantly strives to implement the initiatives
required to achieve the vision of Enhanced Energy Efficiency. SDA, Orissa continually strives
to propagate energy excellence to every corner of the State and targets to meet or exceed the
commitments to the many stakeholders it serves. All of the long-term strategies and short-term
actions are targeted towards the achievement of Enhanced Energy Efficiency, by exploring
new energy conservation opportunities while continually improving efficiency that can be
watched and emulated as a model of success. Various policy initiatives in the states are given
below.
Odisha Energy Conservation Building Code 2011 (OECBC) has been notified for adoption
in the State. Odisha has been the first State to have amended the ECBC to match the local
requirements in consultation with BEE, Govt. of India.
Odisha State energy conservation fund (OSECF) rule has been notified and OSECF has
been established for effective implementation of EC Act in the State.
Scheme for extending financial support to State PSUs, cooperatives and autonomous
institutions for implementation of energy efficiency in the buildings, industries, municipality,
and agriculture has been approved and notified.
State action plan for climate change for energy has been finalized with action templates for
energy conservation and energy efficiency.
Energy Conservation Policy of the state is being framed to ensure implementation of energy
efficiency in the building, municipal, agricultural, industrial and domestic sector. Draft
policy is being reviewed for finalization.
SDAs guidelines and directives involve promotion of use of energy efficient lights in buildings,
street lights, outdoor lighting, hoardings and advertisements, use of star labeled appliances,
use of star labeled transformers for the distribution sector, adoption of ECBC and energy
efficient building design in Govt. buildings, star rating of Govt. buildings with a connected
load of 100 kW or more, mandatory reduction of outdoor illumination by 50% for the Govt.
Sector, mandatory use of energy efficient motor pumps in agricultural sector, mandatory use
of solar water heating systems in industries, Govt. hospitals etc., creation of district and state
level nodal officers for energy conservation and efficiency, appointment of Inspecting Officers.
Renewable Energy Development Agency was constituted as a State Nodal agency in the 1984
under aegis of Dept. of Science and Technology.
The government has launched the Odisha Solar Policy 2013 with an objective to promote
the use of solar energy in the state to support development and address the problem of energy
security.
Punjab
Government issued notification for the mandatory use of solar water heating systems in
buildings (having area of more than 500 sq.yds.), Compact fluorescent lamps (CFLs), BIS
marked pump sets (min BEE 4 star and ISI marked) in govt. and private sector and promotion
of Energy Efficient Building Design. The State Level Energy Conservation Action Plan Team
(ECAT) was created in 2008 to harmonize energy conservation policy across sectors and for
assistance of development programmes in the State. State Level Steering Committee (SLSC)
were constituted to provide guidance and support for the operation of PSECF which was
formed with an objective to promote the efficient use of energy and its conservation within
the state.
165

In August 2013, the state released a draft policy on net metering. According to this anyone
can set up a solar rooftop within a capacity range of 1 kW to 500 kW with maximum capacity
of the Roof Top Solar PV system not be more than 80% of the Sanctioned Connected Load.
Injection of power from the rooftop solar PV system should not be more than 90% of the
consumption from the licensees supply by the consumer in a year. As a demo project of
energy efficiency in village, the state has also installed LED lamps for home lighting application
which brought a savings of 90% [13].
Sikkim
The Sikkim Renewable Energy Development Agency (SREDA) is responsible for all renewable
energy programmes and projects in the State.
Sikkim Government is in the process of installation of grid-interactive SPV power plants of
2 kVA capacity with battery backup at every Common Service Centre (CSC) in 32 different
locations across the state of Sikkim.
The National Biogas and Manure Management Programme (NBMMP) has constructed biogas
plants of 2 cubic meters size with funding by Central Financial Assistance (CFA) from the
NBMMP programme, as well as from State Plan provisions. Beneficiaries for this programme
are selected through the recommendations of the Panchayats and after verification of
criterion as envisaged in the NBMMP Programme guidelines. The programme has found wide
acceptability amongst rural farmers as an affordable means of cooking and lighting alternative
source of energy.
Tamil Nadu
The Government of Tamil Nadu has established Tamil Nadu Energy Development Agency
(TEDA) which takes care of the promotion and implementation of new and renewable sources,
energy conservation activities and the R&D in the field of renewable energy.
TEDA organizes awareness programmes on energy efficiency and renewable energy,
cogeneration in sugar mills, biomass projects, energy recovery from solid waste, electrification
of un-electrified habitations using solar lighting and other renewable energy sources, grid
interactive solar plants and decentralized power generation for solar lighting, solar water/air
heating, solar/ wind mill water pumping, biomass gasifier and biogas plants.
The government is promoting solar roof top systems. Generation based incentive given is ` 2/
unit for first year, ` 1/unit for second and third year and ` 0.5/unit for subsequent two years
for those units installed before 31 March, 2014 [6]. Solar home lighting is installed in 3 lakh
houses which is under progress and supposed to be completed by 2015-16. Along with this 1
lakh street lights would be energized by solar energy by 2015-16 [7]. It has become mandatory
for all the government buildings to install solar roof top systems to supplement the power
supply. The use of solar water heating system is also mandatory for all designated new houses,
buildings, marriage halls, hotels etc. and will be mandatory for all the industries using hot
water boiler/ steam boiler using fossil fuels.
As a part of energy efficiency, forty-one (41) energy intensive industrial consumers have been
asked to reduce their consumption, with specific targets, by March 2015 [8]. It is also notable
that the use of incandescent bulbs is banned and three-star energy efficiency rating had
been made mandatory for electrical appliances procured by government departments. The
commercial and other major buildings in the state may have to adhere to Energy Conservation
Building Code (ECBC) as the process is on to make it mandatory in order to conserve energy
[9].
166

Tripura
The state has a nodal agency in implementing renewable energy installations called, Tripura
Renewable Energy Development Agency (TREDA). Under the SPV programme, TREDA is
about to distribute totally 500 nos. solar home lighting systems and 50 street lights. As a part of
the solar lantern programme, a total of 15000 nos Solar Lantern was to be distributed all over
the State. Beneficiary contribution for a BPL family is 500/- and for an APL family is 1000/-.
The programme was completed by TREDA. The state has also got solar water heating system
programme. There are also plans to supply piped cooking gas to households in the city.
During 2012, the Tripura government had announced its plan to make the state capital a solar
city replacing at least 10 per cent of regular power use with solar energy. It has also planned to
make Agartala a clean energy city by 2018-19 by making all vehicles run on natural gas.
Uttar Pradesh
Government of Uttar Pradesh has made energy policy 2009 and solar policy 2013. The main
objectives of the energy policy includes renovation and management of existing power plants,
improvement in the distribution sector by reducing T&D losses, energy conservation and
DSM.
Under the energy policy, 2009 energy audits are made compulsory for all major industrial
and large commercial establishments and measures are initiated to improve the efficiency
of agricultural pump sets and all electrical installations. Promotion of use of energy efficient
equipments through suitable directives and fiscal incentives/disincentives, construction
of energy efficient buildings and the launching of communication campaign for consumer
guidance and education programme also become a part of the policy.
Various programs such as Solar Energy programs, Bio-Energy programs, Micro-Hydel
programs, Wind Energy programs, Energy Conservation programs have already been under
implementation in Uttar Pradesh.
Uttarakhand
In the state of Uttarakhand, Solar Photovoltaic (PV) systems are being distributed/ installed
by Uttarakhand Renewable Energy Development Agency (UREDA). LED Based Solar Home
Lighting Systems (SHLs) are being distributed to meet the domestic lighting requirement
whereas Solar Street lights are being installed for the street lighting of the 670 Nos. selected
villages. UREDA has also launched a Solar Charkha programme for people in various districts
of Uttarakhand which were using hand operated drop spindle and paddle operated charkha
for spinning of Wool and Silk.
According to the policy of the state, any type of roof owner (residential/ commercial/ industrial/
institutional/ government) is eligible to set up Solar Power Plant within the prescribed capacity
limit. The limit is 300 W to 100 kW for projects with battery backup and up to 500 KW
without battery backup [15]. The grid-interactive rooftop system can work on net metering
basis wherein the beneficiary pays to the utility on net meter reading basis. The system owners
could get ` 9.20/kWh for electricity exported to grid in the year 2013-14.
West Bengal
West Bengal Renewable Energy Development Agency (WBREDA), formed in the year 1993,
has a mandate to promote Renewable Energy Technologies and to create an environment
conducive to their commercialization through innovative projects. WBREDA has initiated a
167

programme to organize a workshop with different Municipal Authorities of North Bengal and
South Bengal for creating awareness of use of Solar PV, Solar Thermal, Municipal Solid Waste
etc. in the urban areas. It has also completed installation of 5825 nos. SPVSLS in different
parts of the State of West Bengal [14].
WBREDA is also implementing the Solar Thermal Programme which includes installation
of Solar Water heating Systems and Solar Cookers across the State of West Bengal. It has
also installed Solar Water Heating Systems at different students Hostels, Corporate Houses,
Hospitals, Nursing Homes and at individual premises with the aggregated capacity of 12,500
lpd. Solar Cooking System is also introduced in different Institutions for Community Kitchen
and Mid-Day Meal Programmes in Schools [14].
Summary of energy efficiency initiatives by various states are given in Annexure-IX.
Energy Efficiency Services Limited (EESL)

EESL is a joint venture company of four central power sector undertakings viz.
National Thermal power Corporation (NTPC) Ltd, Power Finance Corporation
(PFC), Rural Electrification Corporation (REC) and POWERGRID with equal
share holding for all the four companies. The company was registered under
the companies act 1956 on 10th December 2009. It works as an ESCO to
create and sustain markets for energy efficiency in the country. The company
works closely to BEE and is leading the market related activities of NMEEE.
POWERGRID also is an ESCO GRADE - I company which conducts energy
audits of industries, institutions, offices etc.
20.4. Conclusion
All the Indian states have designated agencies to take care of energy efficiency &renewable
energy implementations. Most of the renewable energy implementations are solar based. The
implementation of grid connected solar program has started its phase in India. Roof top solar
PVs through net-metering is another opportunity. Growth of renewable energy and energy
efficiency adaptations shall facilitate in meeting growing demand.Governments have to look
forward to promote net zero energy buildings through energy efficiency & renewable energy
measures.
20.5. References
168
1.
Energy efficiency initiatives

energymanagertraining.com/
in
Gods
Own
Country,
Kerala,
http://www.
2.
Energy Audit Guidelines, Energy Management Centre Kerala, http://www.keralaenergy.

gov.in
3.
Energy Policy 2001, http://www.prd.kerala.gov.in
4.
Energy Policy, http://www.old.kerala.gov.in
5.
Inter Solar India, www.intersolar.in


6.
EAI, www.eai.in
7.
Solar Energy, http://www.teda.in/
8.
Energy conservation code ready, The Hindu, December 27, 2013
9.
Tamil Nadu Energy Conservation Building Code gets ready, The Times of India, 28th
Dec, 2013
10. Energy Conservation and Energy Efficiency, Government of Karnataka, http://www.

gokenergy.gov.in/
11. http://jammuandkashmirupdate.com/news/newsdetail4.html
12. J&K signs MOU for 7500 MW solar power generation, The Economic Times, March 3,
2014
13. Net Metering Initiatives in India, Inter Solar, www.intersolar.in
14. Solar Energy Programme, WBREDA, http://www.wbreda.org
15. Schemes for Grid Interacted Rooftop and Small SPV Power Plants in Uttarakhand,
http://www.ureda.uk.gov.in/
16. Draft of the Goa State Government Policy towards Renewable, Solar Energy and Energy
Conservation- Goa 2014, GEDA.
169
170
Chapter
Energy Efficiency Policies and

Regulations across the Globe
21
21.1. Introduction
It is widely believed that energy price and energy policy are the two important drivers for
faster implementation of energy efficiency (EE) measures. Even though the policy regulations
for Energy Efficiency can vary from country to country, there are some common drivers for
such implementations. Government have put forward many policies to overcome the barriers
to Energy Efficiency implementations to make EE market more attractive. The main aim of
the policies is to encourage industry to undertake energy efficiency measures energy audit as
well as create market for energy efficient equipment / infrastructure and capacity building to
deliver EE goods and services to reduce energy intensity. A brief of the general EE policies that
government can implement is described by IEA (Refer Table 21-1).[1]
Table 21-1: Policies to Enhance Energy Efficiency Market
Policy
Pricing mechanisms
Regulatory and control
Mechanisms
Example
Variable tariffs where higher consumption levels invoke
higher unit prices
Compulsory activities, such as energy audits and energy
management
Minimum energy performance standards (MEPS)
Energy consumption reduction targets
EE investment obligations
Fiscal measures and tax

Incentives
Grants, subsidies and tax incentives for energy efficiency

investments
Direct procurement of EE goods and services
Promotional and market
Public information campaigns and promotions
transformation mechanisms Inclusion of energy efficiency in school curricula
Appliance labelling and building certification
EE campaign in Govt. office buildings
Technology development
Development and demonstration of EE technologies
Commercial mechanism
and capacity building
Creation of energy service companies (ESCOs)

Training programmes
Development of EE industry
Financing
Revolving funds for EE investments

Project preparation facilities
Contingent financing facilities
Energy Efficiency Policies & Regulations Across The Globe
171
21.2. Energy Efficiency Regulations in India

As energy demand is growing fast, there is a concern about economic and environmental
consequences that call for effective and thorough energy governance in India. To understand
the dynamics of the energy policy framework governing Indias energy sector, it is essential to
comprehend the policy objectives and context in which they are placed. Three main energy
policy objectives are pursued by the Indian government as follows [2].
First, access to energy is the foremost goal in Indias energy policy as nearly one third
of the countrysrural population lack access to electricity and over 300 million Indian
citizens had no access to frequent electricity.
Second, energy security, which is crucial to meet the Indias huge energy demand. Increased
import dependence exposes the country to greater geopolitical risks and international
price volatility. EE measures and harvesting alternate fuel are focus of attention.
Third, India is dedicated to the action plan on climate change and implementation of
Energy Efficiency measures.
In India, the energy Efficiency related programmes have been initiated by the Government of
India through various laws and regulations. These laws and regulations have been introduced
during the last two decades.
Few of the indicative laws, regulations and initiatives introduced in India during last 20 years
are given below [3]:
172
Energy Conservation Act 2001 passed to provide an overall thrust to Energy Efficiency
and conservation.
Creation of Bureau of Energy Efficiency (BEE) in 2002 under the provisions of Energy
Conservation act 2001 and operational since March 2002.
Disclosure of company level energy efficiency information in the annual report for
exploring environmental costs and benefits and relevant contribution in the country.
Accelerated depreciation for energy efficiency and pollution control equipment.
Generation Based Incentive (GBI) that focuses on providing incentives to business not
availing accelerated depreciation.
Establishment of the (autonomous) Energy Management Center under the Ministry of

Power for implementing and monitoring energy conservation programs and to provide
policy guidance and advise on energy efficiency.
Removal of price and output controls to promote industrial competitiveness.
Energy price reforms to guide energy efficiency initiatives and encourage international
competitiveness.
Formation of state energy conservation funds that enable states to encourage energy
efficiency in several industries.
Provide Grant to encourage preparation of Detailed Project Reports (DPRs) for energy
efficiency projects.
Incentives for installation of solar home water heating systems.
Mandatory energy audit for industries at intervals
Net-metering regulations to install rooftop solar PV system by individual.

Enabling trading of energy efficiency certifications that encourages productivity and

competition among businesses.
Formation of the industry association for facilitating collaboration among Indias

energy efficiency industries and service providers, enabling them to come together as
the policy research and advocacy organization that supports the governments energy
conservation and energy efficiency (EE) policy implementation, market development and
implementation of EE improvements in all sectors of Indias economy.
It can be noted that the energy intensity in India has reduced in the last one decade as evident
from Figure 21-1 and can be considered as an effect of policies implemented by the GoI.
Figure 21-1: Energy Intensity variation during 2000-2008
21.3. Policies and regulations in energy efficiency in other

countries
A review is made to understand how the low energy intensive countries are governed by the
regulations. The regulations in few of the following countries were studied and highlights are
as follows.
Canada
There is strict distinction between regulated and non-regulated products in respect of Energy
Efficiency in Canada. Anyone who is a manufacturer or importing agency or selling/ leasing
regulated products should ensure that the product meets the energy efficiency standard
and before importing a product or before shipment from the factory an energy efficiency
report needs to be sent to Natural Resource Canada (NR Can). All such products must have
energy efficiency verification mark and EnerGuide Label affixed on it as prescribed by the
regulations.
If the imported products are identified to be without having the pre-described standard, custom
clearance is not granted. Canadas Energy Efficiency Act allows making and enforcement of
173

regulations concerning minimum energy performance levels for energy using products, as well
as the labelling of energy-using products and collection of data on energy use.
Japan
In about 30 years, Energy Efficiency in Japan has improved by about 37% as a result of concerted
efforts of both the public and private sectors. This is due to the initiatives by both regulation
and Govts support. Regulations are based on law concerning the rational use of energy and
Govt.s support is in the form of budgetary, tax and financial measures. The law concerning
the rational use of energy was passed in 1979 and its framework now covers all sectors within
the economy [5].
In 2005, transport operators were also added under this regulatory system with the owners
of the cargo also subject to regulations as well. So far standards have been established for 21
products including automobiles, household appliances and lighting. Standards for automobiles
were announced in 1999.
Earlier as per law, it was mandated to appoint an energy manager for each designated factory
or work place. In the housing sector, all buildings with 300 sq.m. of floor space or more need
to report individual energy conservation measures to the authority. For the industrial sector,
energy conservation is to be effected by reduction effort of minimum 1% per year and it
should be reported periodically as per regulatory measures.
Japan has also targeted that all newly constructed public building by the year 2020 to be Zero
Energy Building.
United Kingdom
In October 2008, the British government created DECC (Department of Energy and Climate
Change) with objectives to ensure that the energy is secure, affordable and efficient and to
bring about transition to a low carbon Britain. The country has created the Energy Act 2011 to
bring change in the provision of energy efficient measures to homes.
In the residential sector, under the Energy Company Obligation, energy suppliers have a duty
to reduce emissions. Under the Energy Act 2010, energy companies are required to make
available at least 300 million per annum (around 345 million) by 2013-14 on social support
to tackle fuel poverty by lowering energy bills of the most vulnerable consumers. There are
roll-out plan for Smart Meters. The aim is for every home in Great Britain to have a smart
energy meter in 2019. The new information smart meters will help consumers to see what
energy they are using and how to save money on their bills. The Government confirmed its
intention for all new homes to be zero carbon from 2016 and all new non domestic buildings
to be zero carbon from 2019 [6].
In the Transport Sector, Government is supporting market growth for ultra-low emission
vehicles (including technologies such as electric batteries, hydrogen fuel cells and plug-in
hybrid technology) by providing 300 million as incentives to consumer upto 5000 per
car. It is anticipated that average new car emissions could need to be 50-70 gCO2/km and
75-105 gCO2/km for new vans by 2030. Biofuels are also expected to make an important
contribution to emission reductions. The Renewable Transport Fuel Obligation (RTFO), as
amended in December 2011, obligates fossil fuel suppliers to produce evidence showing that
a percentage of fuels for road transport supplied in the UK come from renewable sources and
are sustainable, or that a substitute amount of money is paid [6].
In March 2011, the Government announced the details of the Renewable Heat Incentive policy
to revolutionise the way heat is generated and used. Long-term tariff support is targeted in the
174

non-domestic sectors. There is also support of around 15 million for households through the
Renewable Heat Premium Payment scheme. The Renewable Heat Premium Payment (RHPP)
has provided support to the domestic sector since August 2011 [6].
The Feed-in Tariffs (FITs) scheme was introduced on 1st April 2010 to encourage deployment
of additional small scale (less than 5 MW) low-carbon electricity generation, particularly
by organisations, businesses, communities and individuals not traditionally engaged in the
electricity market. It allows many people to invest in small scale low carbon electricity, in
return for a guaranteed payment from an electricity supplier for the electricity they generate
and use as well as a guaranteed payment for unused surplus electricity they export back to the
grid. [6].
Germany
Between 1990 and 2011, both primary and final energy consumption in Germany decreased
by 12% and 8% respectively. The building sector is regarded as the key to greater energy
efficiency in the German Energy Concept from 2010. In this field, the following measures were
taken [7].
Inclusion of the climate neutral building standard, to be met by new buildings by 2020,
in the revised Energy Saving Ordinance of 2012.
Development of renovation roadmap for existing buildings which starts in 2020.
Ensuring better funding for the CO2 building rehabilitation programme to support
efficiency measures and assessment whether a budget-independent financing of building
refurbishment programmes (e.g. by White Certificates) from 2015 is possible.
Increasing the market incentive programme for the use of renewable energies for heat
generation in buildings.
Launching a new support scheme performance-enhancing urban rehabilitation.
In 2009, the EU-Directive on Eco-Design of Energy-using Products (EuP Directive, 2005/32/EC)

was revised and extended to all energy-related products. Energy-relevant products covered by
the eco-design requirements had to be placed on the market if they comply with the relevant
requirements [7].
In the transport sector, in 2009 the environment bonus for car scrapping provided 2,500 Euro
to people who scrap a car thats at least nine (9) years old and buy a new car instead before
end of the year 2009. This scheme was aimed to encourage people to replace older, inefficient
cars, with the latest engine technology. Due to the high demand the budget was raised from
1.5 billion to 5 billion Euro. The measure provided financial funding to approximately 2 million
new car-owners. A strong focus is also on Germanys electric mobility strategy, which aims to
have 1 million electric vehicles on road by 2020 and 6 million by 2030. At the EU level, the
German Government is advocating for ambitious CO2 limit for all classes of vehicles. The
German Government is also taking steps to foster a higher share of vehicles that run on natural
gases and to increase the share of sustainably produced biofuels [7].
The Federal Ministry for Economics and Technology (BundesministeriumfrWirtschaft und
Energieabbreviated as BMWi) together with the KfW, promotional bank, offer a special fund
for energy efficiency in SMEs in order to promote energy efficiency in small and medium
enterprises. The fund supports the advice on potential energy savings in SMEs providing a grant
up to 80% for an independent energy advice. Financial support is given for investments for
exploiting the saving potentials by means of low interest loans under Energy Saving Programme
[7].
175

One measure in the Energy Concept from 2010 was the creation of an Energy and Climate
Fund, out of which a special energy efficiency fundwas established and the financing for the
existing National Climate Initiative was increased.
With regard to product labelling and standards, Germany is advocating ambitious standards at
EU level and a transparent labelling for cars, products and buildings. In order to save electricity,
the advisory service for private consumers was considerably extended, especially for poor
households. In industry, a wider spread of energy management systems and energy audits is
supported in order to help industry to better identify and tap its efficiency potential [7].
In the framework of the Integrated Energy and Climate Programme, the German government
has elaborated a Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz) for Heat.
The overall strategy is to reduce the dependence on imports, reduce the exploitation of
fossil resources, be in line with the climate protection programme and induce a sustainable
development of energy supply and technology for generation of heat from renewable sources.
The new act forces new residence owners to use an increasing share of renewables for the
energy and heat use in buildings (e.g. geothermal, environmental and biomass).
Italy
On the building side, Italy has made mandatory under Decree Law that dictates minimum
requirement for new and for the existing buildings which undergo major renovation to adopt
energy efficiency means and sets the guidelines for the energy certifications of the buildings.
New buildings should have energy performance index lower than a threshold for both winter
and summer air-conditioning. At least 50% of primary energy consumption for water heating
is to be obtained from renewable energy sources [8].
The tax deduction of 55% of the amount payable by the taxpayer for interventions in energy
efficiency for existing buildings keeps on having excellent results. In 2009 there were 2,36,700
interventions with a primary energy savings estimated of 1,487 GWh/y and CO2 avoided of
317,000 t/year, in 2010 405,600 interventions with an primary energy savings estimated of
2,032 GWh/year and CO2 avoided of 4,30,000 t/y.
In transport sector, the main measures are to replace the fleet with fuel-efficient and low-emission
vehicles. The law promotes sustainable mobility measures to encourage the development of
infrastructure networks for charging vehicles powered by electricity, especially in order to
increase the spread of public and private fleets of low-emission vehicles and purchase of
electric or hybrid vehicles.
Energy efficiency measures are promoted in industrial sectors with incentives for new electrical
motors at high efficiency and inverters, lighting control systems and high efficiency cogeneration.
Other incentives are related to heat recovery in production processes. In December 2008,
26 selected Sustainable Mobility projects received a total of 180 million euro (` 1,440
crore), generating a total investment of 450 million euro (` 3,600 crore). In January 2009,
the Industrial Energy Efficiency stream selected 30 projects mobilizing an investment of 500
million euro (` 4,000 crore) in research and development targeting both efficiency and the use
of renewable energy technologies. A new white certificates mechanism is under approval with
new guidelines to be in force in 2014 [8].
France
A new thermal regulation, the 2012 Thermal Regulation (RT) strengthens requirements
concerning the thermal performance of new buildings. All new buildings with a building permit
lodged after 1st January 2013 should have primary energy consumption below a threshold
176

of 50 kWh/m2/year which concerns consumption of heating, cooling, lighting, domestic hot
water produced and auxiliary equipment like pumps and fans [9].
Since 2005, private individuals have been eligible for a tax credit to purchase the most efficient
materials or equipment in the area of energy saving or of production of energy from renewable
sources under Sustainable Development Tax Credit (CIDD). Since it was introduced, the list of
equipment eligible for Sustainable Development Tax Credit and the rates applied have been
regularly revised in order to speed up the pace of minor thermal renovations and encourage
use of the most efficient technologies [9].
Since January 2008, new buildings with a net floor area of more than 1000 m must undergo a
feasibility study of the various energy supply solutions, and in particular the use of renewable
energies and the most efficient systems. The Live Better program should permit 300,000
refurbishments between 2010 and 2017 [9].
In the transport sector, an objective has been set for reduction of CO2 emissions by 20% in
2020 and of a decrease of the average emissions of the car stock from 176 gCO2/km to 130
gCO2/km. Two million of electric and hybrid cars are planned in 2020. The main measures for
cars are the compulsory labelling scheme and an ecological bonus since January 2008] [9].
The most challenging operation in industry was the implementation of the CO2 National
allocation plan amounting to 132.8 MT CO2 between 2008 and 2012. Specifically intended for
the industrial sector and introduced under future investments, the Green loans mechanism,
put in place in July 2010 with a budget of 500 million, makes SMEs and industrial midcaps eligible for loans at subsidised rates and loan guarantees for investment to increase the
competitiveness and energy and environmental performance of their process or products. This
mechanism is managed by OSEO, a public undertaking, the role of which is to finance and
support innovation and growth among businesses. Since 2010, 2600 million of green loans
was proposed to industrial companies to allow them to be more environmentally friendly in
order to be more competitive [9].
United States (USA)
The United States remains energy-intensive relative to other countries in terms of energy use
per unit of gross domestic product as well as in per-capita terms but the energy intensity is
getting improved and stands below the world average.
Minimum standards of energy efficiency for major appliances were established by the U.S.
Congress in the federal Energy Policy and Conservation Act (EPCA) of 1975 and have been
subsequently amended by succeeding energy legislation, including the Energy Policy Act of
2005. The president issued a Memorandum for the Secretary of Energy in February of 2009
requesting the Department of Energy (DOE) to take all necessary steps to finalize outstanding
efficiency standards as expeditiously as possible [10].
The Federal Energy Policy Act of 2005 (EP Act 2005) established several goals and standards
to reduce energy use in existing and new federal buildings. There is a federal energy reduction
goal of 30% by fiscal year 2015. This directed federal agencies to purchase Energy Star
and Federal Energy Management Program (FEMP) designated products; and required new
federal buildings to be built 30% below American Society of Heating Refrigeration and Airconditioning Engineers) ASHRAE standards or the International Energy Conservation Code
(IECC). Any agency must incorporate energy-efficient specifications in procurement bids and
evaluations, and should only purchase premium efficient electric motors, air conditioning and
refrigeration equipment [11].
177

It is also required that at least 30% of the hot water demand for each new federal building
or existing federal buildings undergoing a major renovation should be met through the use
of solar hot water heating, if it is determined to be life-cycle cost-effective. Agencies are also
required to purchase plug-in hybrid vehicles when life-cycle cost analysis demonstrates their
cost to be reasonably similar to other vehicles [11].
China
The efficiency of new coal-fired power plants and the closure of ageing smaller power plants
have both contributed tremendously to Chinas overall progress in raising energy efficiency.
For example, 85 gigawatts (GW) of small, inefficient power plants were shut down during the
period of 2006-2011. China has installed many super critical and ultra super critical power
plants which constitutes 28% of the total fleet, the highest percent in the world. The 12th
FYP stipulates that all new plants of 600 MW or more should use Super Critical (SC) or Ultra
Super Critical (USC) technology. In the industrial sector, old inefficient units are quickly being
replaced with state of the art facilities.
In China the home appliances are marked with the energy efficiency labels as per the
government instruction and should meet the standards.
Today, China has three (3) major programs related to appliance standards and labelling.
1.
Mandatory minimum efficiency standards.
2.
Voluntary energy efficiency labels.
3.
Mandatory energy information labels
Australia
The Australian government has acted to take up the energy efficiency measures mainly in
two sectors: Heavy Industry and Residential Buildings. In 2000-2007, there was an annual
growth rate of 2% in the electricity consumption which reduced to less than 1% since 2008
due to various factors including flatter economic conditions, relatively mild summers and
solar photovoltaic (PV) and solar hot water installations on houses (AER, 2012). The Australian
government has put forward mandatory Energy Rating Labels (ERL) and Minimum Energy
Performance Standards (MEPS). As part of the regulatory requirements in Australia, all new
proposals relating to nationally applied regulation are subjected to a Regulation Impact
Assessment (RIA) to assess the costs and benefits of the regulatory proposal for individuals,
business and the economy, as well as to consider alternative proposals to achieve comparable
energy savings.
21.4. Conclusion
Based on the policies, regulations and practices followed by various countries mentioned
above, there is huge scope for improving energy efficiency levels in Indian industries,
thermal power plants, household, agriculture, municipalities, T&D and transport sector.
A well planned renovation and modernization initiative with government policy / regulation
shall help India to reduce energy intensity. As India is a developing country, a strict regulation
for reduction of CO2 and improved energy efficiency levels shall help in surpassing
developed countries. A summary of energy efficiency initiatives by various states is given in
Annexure-X.
178
21.5. References
1.
Energy Efficiency Governance, IEA, 2010
2.
Understanding Energy challenges in India, Policies, Players and Issues, IEA, 2012
3.
Energy Efficiency by the government of India, smallb.in, http://smallb.in/%20/

environment%20/energy-efficiency-cost-savings%20/energy-efficiency-governmentindia
4.
Energy Intensity of GDP at constant purchasing power parties, Enerdata, Global Energy
Statistical Yearbook 2014
5.
Energy Efficiency Policies in Japan, Toshiyuki Sakamoto, http://www.gov-online.go.jp/

pdf/hlj_ar/vol_0021e/22-23.pdf, accessed on May 2014
6.
Energy Efficiency policies and Measures in UK, ODYSSEE-MURE 2012, Sep 2012
7.
Energy Efficiency policies and Measures in Germany, ODYSSEE- MURE, Nov 2010
8.
Energy Efficiency policies and Measures in Italy, ODYSSEE- MURE, Nov 2010
9.
Energy Efficiency policies and Measures in France, ODYSSEE- MURE, Sept 2012
10. Federal Appliance

appliance-standards
Standards,
ENERGY.GOV,
http://energy.gov/savings/federal-
11. Energy Goals and Standards for Federal Government, ENERGY.GOV.IN, http://energy.
gov/savings/energy-goals-and-standards-federal-government
12. WEC 2013: Energy efficiency first fuel for rich countries, says IEA report, plats,
McGRAW Hill Financial.
179
180
Chapter
Research & Development in

Energy Efficiency
22
22.1. Introduction
India is fast emerging as a preferred destination for cutting-edge Research, Development
and Demonstration activity as the consumer base in India as well as demand for energy are
increasing. A considerably large talent pool across diverse areas of science, technology and
management, along with academic and research infrastructure is making India a base for
industrial RD&D choice of the global corporations. On the other hand, there are practical
challenges related to infrastructure, retention of science and engineering talent pool, utilization
of government funds, and participation of private companies in promoting RD&D growth.
The overall government and industrial spending in scientific and technological R&D has
remained below 1% of total GDP for more than a decade. The government spending accounts
for over 3/4th of the Gross Expenditure for Research & Development (GERD), followed by
20-25% spent by private sector and 5% by universities [1].
R&D expenditure in India is mainly contributed by the Government and other big Corporates
[2]. Indian Government is contemplating on increasing the investment in R&D in public and
private sector to 2% of GDP via the following measures:
Higher allocation to scientific research
Setting up of new institutions for science and educational research
Creation of centres of excellence and facilities in emerging and frontline areas in academic
and national institutes
Strengthening infrastructure for R&D in universities
Encouraging public-private R&D partnerships
Grants for industrial R&D projects.
22.2. R&D requirements in Energy sector in India

The crucial R&D needs required to bridge the technology gaps in various subsections of the
electricity sector (Generation, Transmission & Distribution), are identified by CEA and CPRI.
According to CEA and CPRI, the major thrust areas for R&D in this sector are listed below.
Thermal Power Generation
(i)
Measures to improve plant availability, reliability, efficiency and safety
(ii)
Blending of Coal
R&D Requirements in Energy Efficiency
181

(iii) Gasification of solid and liquid fuels for power generation
(iv) Supercritical Boilers for Power Generation
Transmission
(i)
Transmission equipment
(ii)
Advances in HVDC transmission
(iii) Polymer insulators (non-ceramic/silicon rubber)

(iv) GIS substations 800 kV and 1200 kV class equipment development
Distribution
(i)
Advanced metering
(ii)
Distribution automation
(iii) Power Quality & Custom Power Devices

Some technologies that could be on the verge of commercial deployment, with just an
additional resource injection for design improvements, which the government could place on
its priority list, include the following:
Biofuels: A second generation biofuels programme needs to be designed and implemented

in a mission mode.
Solar energy: R&D on solar PV and thermal technologies has advanced significantly at
the global level. India would do well to focus its RD&D efforts on developing contextspecific applications and research on grid interface issues.
Wind energy: Resource mapping exercises have to be refined in line with new technology
developments globally, with a particular emphasis on offshore wind resources.
Biomass Gasification Systems: Growing popularity of biomass gasification system in the

country require critical innovations relating to gas clean-up system and engine design.
SME sector: Designing, developing, and demonstrating energy-efficient technologies to

suit specific conditions of SME clusters.
Smart grids: The increasing share of renewable energy in Indias energy sector and
the greater emphasis on energy efficiency could have serious implications on - and be
limited by - the nature of electricity grids. India needs to implement pilot projects on the
concept of smart grids that would prepare us for such large-scale integration of non-firm
and distributed energy sources into our energy systems and their management.
22.3. Indias R&D in Building Energy consumption

The potential for energy savings in new buildings is 40-50% if energy efficiency measures are
included in the design stage. For existing buildings, the potential could be as high as 20-25%
after energy efficiency retrofits [5].
The national program focuses on the following areas: energy-efficient buildings and building
components such as energy-efficient windows, low-cost insulation materials, and simulation
software and energy-efficient appliances such as energy-efficient ceiling fans, and low-cost
light emitting diodes (LED)-based lamps.The national building research program focuses more
182

on deployment programs rather than new technology R&D, but at the same time, there are
ongoing R&D programs to develop new Solid State Lighting (SSL) and solar energy technologies.
Few of the R&D programs for building energy conservation in India are as follows.
LED Lighting
India, at present, is more successful in system-level development with imported LED
chips, whereas wafer manufacturing is only at the research level addressing very limited
issues of wafer fabrication. The LED chips are imported from other countries. BEL is
interested in setting up a facility to manufacture white spectrum LEDs in the country. BEL
and CREE signed a Memorandum of Understanding (MoU) for cooperation in this area.
Solar based cooling systems

With financial support from MNRE, TERI started a project in April 2009 to develop a
combined solar biomass based cooling system. The system is designed for village-level
cool storage with electricity supply applications, and for urban residential/office space
cooling applications.
Ceiling Fans
The R&D program are focusing on the development and testing of alternate technological
platforms based on DC motors or linear motors for energy-efficient ceiling fans.
22.4. DC Grid & Micro Grid

Efficiency and reliability of distributed microgeneration can be enhanced through various
modular grid-connected photo-voltaic (PV) generation systems. It has been observed that
microgrid can play a significant role in energizing a large community in India where access to
electricity to more than 30% of population is still awaited.
The application of DC distribution of electrical power has been suggested as an efficient method
of power delivery. This concept is inspired by the absence of reactive power, the possibility
of efficient integration of small distributed generation units and the fact that, internally, many
appliances operate using a DC voltage. A suitable choice of rectifier facilitates the improvement
of the power quality as well as the power factor at the utility grid interface. Stand-by losses
can be largely reduced. In this direction, further research focusing on the extension of DC
power delivery to higher levels of the electricity grid must be carried out for its large scale
implementation.
22.5. Other Areas of R&D for Energy Efficiency

In addition to above areas, there are immediate requirement for energy efficiency related
R&D in various areas, e.g. Transport, petrochemical, pumping, different small and medium
industries, textile, Pulp and paper, cement, Aluminum industries etc., covered in this report.
Energy efficiency (EE) not only helps in reducing cost of production / product, it will also help
in ensuring sustainability.
22.6. Conclusion
Energy efficiency is a key solution in meeting energy and economic challenges of a developing
country like India. Unlike approaches that simply expand energy supply, such as building
new power plants, energy efficiency prioritizes actions that first reduce the need for energy.
An approach is to consume less energy for the same level of service, for example, when
183

operating buildings, tools, products, and machinery. This strategy is known as demand-side
energy efficiency (DSEE) [6].
Increase research and development is required to precisely identify environmental impacts and
minimize the costs of adaptation. Towards indigenisation, support for research, development
& demonstration via in laboratories can speed up technology advances for improved energy
performance at a lower cost.In the face of such advances, targeted sectors for EE action, such
as industry, may be more willing to take on ambitious energy cuts.
With the research activities of CSIR, TERI, IITs etc., on energy efficiency in buildings, it is undoubtful that India has a developed inbuilt R&D infrastructure. However, concrete vision is
lacking in the area.
22.7. References
184
1.
Indias Emerging competitiveness as destination of global R&D, Battelle-India, 2013.
2.
2013 Global R&D Funding Forecast, December 2012, Battelle.
3.
SRMA Steel News, October2013.
4.
Research & Development In Iron & Steel Sector, Ministry of Steel.
5.
Indias R&D for Energy Efficient Buildings: Insights for U..S..Cooperation with India
Pacific Northwest National Laboratory (PNNL-19487).
6.
Same Energy, More Power : Accelerating Energy Efficiency in Asia, Asian Development
Bank, 2013.
Chapter
Investment Potential for

Energy Efficiency
23
23.1. Introduction
To ensure sustainable energy supply and energy security, new and renewable sources of energy
are being increasingly exploited, existing resources are efficiently utilized. In this direction,
energy efficiency has been referred to as a hidden fuel, one that extends energy supplied,
increases energy security, lowers carbon emissions and generally supports sustainable economic
growth.
Shortage of energy in the Indian grid, depletion of natural energy resources such as oil, gas and
coal and saving environment from global warming are major concerns. It is time to harness
limited available resources to give India a bright future. Technology has improved to reduce
energy use and new technology products are available in the market. Investment on proven
technology shall lead to harness the huge potential to make India push forward in another
green revolution.
There is ample scope to save energy and to implement energy efficient solution in every
sector. India being a developing country and since energy efficiency measures have come into
existence only recently, scope in the energy efficiency sector is vast. This report is an attempt
related to energy efficiency activities to bring all the required information at one place that
would help in understanding the energy efficiency potential in various major sectors in the
country so that investments can be planned and implemented. Associated legislation and
policy framework are required for improved energy efficiency activities.
Eight (8) industries (Iron and Steel, Cement, Pulp and Paper, Textiles, Power, Fertilizer, Chloralkali and Aluminium) have been identified in India for which mandatory energy saving
targets were put forward which are named under the PAT industries. Summary of sector-wise
investment potential is described in following section.
Investment Potential for Energy Efficiency
185
23.2. Overall investment requirement for Energy Efficiency in

India
Table 23-1 : Summary of EE saving and Investment potential
Sl.
No.
Sectors
Saving Potential
mtoe*
Thermal Power Plant
Iron and Steel
Cement
Chemical
Aluminium
Pulp and paper
Textile
Electrical
Billion
units
Saving
Potential
(` crore)
Investment
Potential
(` crore)
52.8
8450
42200
27
16200
81000
mtce**
5.12
Thermal
2560
4.72
41.6
2830
27000
20800
104000
2112
10500
7.5
3750
18800
69700
Building
29.47
14735
109000
Municipal street
lighting
3.06
1532
30000
10
53600
268000
3.53
9.55
11-A Municipal Water

Pumping
3.55
1773
13900
11-B Agricultural water

pumping
33
16500
100000
12
Ceramic
714
3600
13
Small and Medium

Enterprises
31.8
15900
79500
14
Coal Sector
300
1500
15
Transmission and
Distribution Sector
75
40000
200000
16
Sugar Sector
13.5
6750
33700
17
Railway
2655
13300
Total
0.340
2.07
9.89
245.67
88.05
12,05,700
*mtoe: million tonne oil equivalent

**mtce: million tonne coal equivalent
186

Governments various energy efficiency policies, such as the PAT mechanism, have given a
boost to the energy efficiency market in India. In this direction, Ministry of Power has enhanced
its operational capability through Energy Efficiency Services Limited (EESL) as a public sector
implementation arm for energy efficiency. EESL has developed a portfolio of projects in
municipal, agriculture, household lighting, industries and other sectors. The total investment
plan of EESL at ` 5000 crore is impressive but is a very small fraction of the overall market
size. Government efforts to scale up interventions during the 12th Plan by investing ` 2500
crore (USD 500 million) in energy efficiency will also accelerate and expand opportunities for
the energy efficiency market to deliver continued energy intensity improvements. However,
all these ongoing efforts are minuscule before the estimated investment potential of ` 12
lakh crore as brought out in this report. Refer Annexure-XI for sector wise energy efficiency
investment requirement.
23.3. Thermal Power Stations

About 70% power generated in India is by thermal plants. As most of the Thermal Plants are
old and adopt old technology, the heat rate is comparatively high. As detailed in the PAT target
by BEE, about 48% of the target of energy savings is attributed to thermal plants which amount
to 3.211 million toe. The net heat rate of the thermal stations has a wide variation starting
from 1774 kcal/kwh to 5134 kcal/kwh. The plants with higher heat rate need a complete
refurbishment. Integrated Gasification Combined cycle (IGCC) and super critical and ultrasuper critical technology is already available to increase efficiency of thermal plants and takes
the combined efficiency to more than 45% compared to the present 30% on conventional
technology. Considerable CO2 emission is also expected in adopting new technology.
Table 23-2 is worked out considering the energy efficiency improvement in coal based power
plants by adopting simple EE solutions as well as by reconstruction of oldest plants (more than
30 years old).
Table 23-2: Summary of Coal Based Thermal Power Sector
Sl.No.
Description
Details
Total Generation during 2013-14
960 BU
Coal based Installed Capacity
60.31%
Present average operating efficiency
30%
Proposed Efficiency
35%
Saving in coal @4500 kCal/kg
52.8 million tonnes
Monitory saving @ ` 1.6/ kg
` 84.5 crore
Investment (approx. 5 years pay back)
` 42200 crore
Capacity of generation units more than 30 years old
13 GW
Average cost of erecting 1 MW supercritical power plant
` 8 crore
10
Investment in erecting 13 GW SCPP
` 1,04,000 crore
187
23.4. Steel and Iron Sector

India is one of the largest Steel producing countries in the world, the steel production in India
has crossed 81 million tonnes in 2013. At present, the specific energy consumption of large
integrated Indian steel plants is in the range of 6.57.0 Gcal/tonne of crude steel as against the
countrys best of 4.55.5 Gcal/tonne. By following international energy consumption norms,
at least 27 million tonnes of coal energy can be saved. Accordingly, the sectorial investment
envisaged is ` 81,000 crore.
Table 23-3: Summary of Sector
Sl.No.
Description
Details
Specific consumption in Indian steel Plants
6.57.0 Gcal/tonne of
crude steel
Specific consumption in International steel Plants
4.55.5 Gcal/tonne of
crude steel
Estimated saving potential
Monitory savings
` 16200 crore
Estimated Investment for savings
` 81000 crore
27 million tonne of coal
23.5. Cement Plants

Indian Cement Industry is the second largest Cement producer in the world. Indias share in
world cement production is about 6%. It is identified that most of the cement industries in
India are running at poor efficiency with an average of 8.7% higher than the best available in
the country. A brief of his chapter is presented in Table 23-4.
Table 23-4: Summary of Cement sector
Sl.No.
Particular
Average
consumption
Best achievable
Percentage
variation
Thermal Energy
Consumption
725kCal/kg
667kCal/kg
8%
Electrical Energy
Consumption
82kWh/ tonne
68kWh/ tonne
17%
Particulars
188
Value
Supply forecast during 2014
366 million tonnes
Thermal Energy saving Potential
` 2831 Crore
Electrical Energy saving Potential
` 2562 Crore
Total Energy Saving Potential
` 5393 Crore
Requires Investment (approx.)
` 26,900 Crore
23.6. Chemical Industry

Chemical industry contributes to 10% of the global energy demand. Among the chemical
sector, Chlor-alkali and fertilizer industries come under PAT cycle 1. BEE identified 22 DCs in
the Chlor alkali industry is mandated to reduce their energy consumption by 0.054 million
toe by the end of PAT Cycle 1. Minimum investment potential in these industries for energy
efficiency/conservation is estimated to be ` 109 billion. The agency has also mandated the
DCs in the fertilizer industry to reduce 0.478 million toe energy consumption by 2015 which
brings out an investment of about ` 18,000 crore. Energy saving potential in the petrochemical
sector of country is not as much as that of US or China but considerable. summary of the sector
is described in Table 23-5.
Table 23-5 Summary of Chemical Sector
Sl.No.
Description
Details
1
Estimated saving potential in Chlor-alkali industry in
0.29 million toe
million toe
2
Equivalent kWh (Considering Electrical energy Equivalent) 3.6627 billion units
Investment potential in Chlor-alkali industry

` 10,900 crore
Estimated saving potential in fertilizer industry in million
0.478 million toe
toe
Investment potential in Fertilizer Industry
Estimated saving potential in chemical and Petrochemical 3.58 million toe

industry in million toe
7
6
` 13,875 crore
` 1,04,000 crore
Investment potential in chemical and Petrochemical

Industry
23.7. Aluminium
India is one of the largest aluminium producers in the world with an annual production of 3.9
million tonnes during FY14. BEE has mandated all the 10 DCs in the sector to reduce energy
consumption by 0.456 million toe during the first PAT cycle.
The electricity cost forms about 40% of the total variable production cost in the aluminium
Industry. With an annual energy saving potential of 20%, the energy efficiency investment in
the sector is estimated to be ` 12,500 crore.
Table: 23.6: Summary of Aluminium sector
Description
Details
Estimated Annual Production
3.9 million tonnes
Average Energy Consumption
85 GJ/tonne
Estimated coal saving
3.53 million tonnes
Monitory saving potential
` 2,112 crore
Estimated Investment
` 10,500 crore
189
23.8. Pulp & Paper

The turnover in the paper industry is about ` 40,000 crore and is considered to be one of
the 35 high priority industries to the Govt. of India. The paper production in the country is
likely to grow at 8.4%, while the consumption of paper will grow at 9%. Hence, the reduction
of energy consumption in the sector is also imperative. The energy efficiency investment in
the sector could save an electrical equivalent of 7.5 billion kWh with an investment of about
` 18,800 crore.
Table 23-7 Summary of Paper & Pulp sector
Sl. No.
Description
Details
Paper Production in 2011
Approx. 12 million tonnes
Wood based production
31%
Thermal Energy intensity in India
27.3 GJ/tonne
Thermal Energy intensity achievable
20 GJ/tonne
Thermal Energy Savings
0.648 million toe
Total investment potential
` 18,800 crore
23.9. Textile Industry

Textile sector is one of the backbone sectors of Indian Economy. Energy costs in Textile sector
vary from 5 to 17% of total manufacturing costs according to the type of process involved. In
this field net investment potential of about ` 697 billion has been identified as brought out in
Table 23-8.
Table 23-8 Summary of Textile sector
Sl. No. Particular
Value
` 14.298 crore
Energy Efficiency Investment in a spinning mill
No. of spinning mills in India
Energy Efficiency investment in spinning mill (@ ` 60 per USD)
` 30,000 crore
Energy Efficiency Investment in a composite mill
` 162.096 crore
No. of composite mills in India
Energy Efficiency investment in composite mill (@ ` 60 per

USD)
` 3,97,00 crore
Net Investment
` 6,97,00 crore
2104
245
23.10. Commercial and Residential Buildings

The investment in residential sector is so huge since it basically involves replacement of the
old high energy consuming equipment with more efficient ones (high star rated). This basically
involves tube lights, lamps, ACs, TVs, Refrigerators, Fan and Air Coolers. With projected data
and current market price of the equipments, an investment of more than ` 2,50,000 crore
is found in the sector. The investment for commercial buildings of load more than 500 kW is
found to be ` 49 billion.
190

Table 23-9 : Summary of Residential & Commercial sector
Sl. No.
Description
Consumption in TWh
Saving potential in TWh
Investment Potential
Residential Sector
Commercial Sector
151.85
9.92
27.5
1.97
` 1,04,100 crore
` 4,937 crore
23.11. Municipal Street Lighting

With the development of LED and other energy efficient lighting technology, Municipal street
light sector has a significant energy saving potential. Use of energy saving lights can help
reduce energy of the order of 50% to 60% of the existing conventional lighting. The saving
potential and investment opportunity in this sector have been calculated and presented in
Table 23-10.
The investment required is calculated taking ` 20,000/light. The total investment required is
around ` 29,904.15 Crore for an annual saving 1533 Crore.
Table 23-10 : Summary of Municipal street lighting
Sl. No.
Particular
Value
No. of street Lights
1,49,52,238
Power Consumption
6,131.3 MU
Saving potential
3,065.65 MU
Monitory equivalent
Investment required @ 20000/ light
1533 crore/year
` 29,904.15 crore
23.12. Transportation Sector

Transportation constitutes to one fourth of the energy consumption of the world and at the
same time major fuels come from petroleum products. With a comparison of fuel efficiency
of Indian vehicles with that of Japanese, the net energy efficiency of close to 20% can be
achieved in the Indian sector. Considering the energy use by road vehicles in 2020 and a
saving potential of 10%, the net investment in the sector is estimated to be ` 2680 billion as
per Table 23-11.
Table 23-11 : Summary of Transportation sector
Sl. No.
Particular
Value
Estimated Energy usage by road transportation at 2020
4000 PJ
Saving potential (10%)
400 PJ
Diesel oil equivalent
Monetary saving @ ` 50/liter diesel
Investment potential (@ 5 years pay back)
10.73 billion liters

` 53,600 crore
` 2,68,000 crore
191
23.13. Agricultural and Municipality Water Pumping

Indian Agriculture sector has a problem of low efficient pumps which operate at very low
power factors. Due to the large number of agriculture pump sets in India totalling more than
20 million in number, there is huge scope for energy saving in this sector.
In this regard, the energy inefficient pumps could be replaced with energy efficient pumps
on an ESCO basis. An estimate of the saving potential and investment in this sector has been
brought out in Table 23-12.
Table 23-12 : Summary of Agricultural pumps
Sl. No.
Particular
Value
1
2
Number of Pumps
Annual power consumption by Agricultural sector @20%
2 crore
131.96 TWh
32.99 TWh
4
5
Savings in Rupees @ ` 5/unit for agricultural

Investment required @ ` 50,000/pump
` 16,500 crore
` 1,00,000 crore
Similar to Agriculture pumps, there is wide scope to improve efficiency of old municipality
water pumping system. Most of the municipalities are operating with very inefficient huge
pumps and replacement with energy efficient pumps can pay back the investment in a short
period of time. Saving potential of Municipality Water Pumping system has been brought out
in Table 23-13.
Table 23-13 : Summary of Municipal pumps
Sl. No.
1
2
3
4
5
Particular
Number of Pumps
Annual power consumption by Municipality sector
Savings in Rupees @ 5 rupees/unit
Investment required @ 60,000/pump
Value
23 lakh
11.821 TWh
3.546 TWh
` 1,773 crore
` 13,920 crore
23.14. Ceramic Industries

The overall size of the ceramic industry in India is approximately ` 18,000 crore. The average
energy cost as percentage of manufacturing cost is 20% to 25%. Manufacturing of Ceramic
Tiles, Sanitary ware, Pottery ware, Electrical Insulators are the major products of the industry.
The energy efficiency investment in the sector is derived to be close to ` 3,600 crore.
Table 23.14 : Summary of ceramic sector
Sl.No.
192
Particular
In 2012
In 2014*
-current-
Growth percentage
15%
Energy Intensity
20-25 % of manufacturing cost
Energy Costs
Energy saving potential
Required Investment
` 3600 Crore
` 4761 crore

` 540 crore

` 714 crore
` 2700 Crore
` 3570 crore
23.15. Small and Medium Enterprises

There are almost 3 million SMEs in India which together contributes 80% of the total industrial
enterprises, 45% of industrial production, 17% of national GDP and 40% of the net export. As
per the resent reports available, 48% of the total energy consumed in industrial sector is from
SMEs. It is also reported that 25% of this energy could be saved without substantial investment.
Considering this fact, the investment in this sector is found out to be close to ` 800 billion.
Table 23-15 : Summary of SME sector
Sl. No.
Particular
Value
Energy consumption by industrial sector in India
265.38 billion kWh
Energy consumption by SMEs
Saving Potential
Monetary saving (@ ` 5/kWh)
` 15,900 crore
` 79,500 crore

23.16. Coal Sector

Energy Efficiency in coal sector starts total from mining till end user.The total energy saving
potential in Indian mining sector is estimated to be in the range of 5-8%. It was found out in a
case study that close to 45% fuel saving can be achieved by following proper recommendations
in a coal mine of production capacity 2.5 million tonnes.
Table 23-16 : Summary of Coal Sector
Sl. No.
Particular
Value
` 1121/tonne
Production cost of coal/tonne by CIL in 2013
Coal production by CIL in 2013
Energy cost/tonne (@10 % total production cost)
` 112.1/tonne
Monetary saving potential (@6 % total energy cost)
` 6.73/tonne
Total annual Monitory savings
` 304 crore
Investment @ 5 year Pay back
` 1520 crore
452 Million tonnes
23.17. Transmission and Distribution Sector

The all India average of T&D losses is around 21%. About 10% improvement in T&D losses
can make India power surplus. During 2010-2011, there were 15nos. of distribution utilities
in India that recorded losses more than 40% and 17 nos. distribution utilities between 25%
and 40. The direct saving of about ` 35,000-40,000 Crore per year is expected from the loss
reduction. This sector needs huge investment for complete renovation and modernization
to the tune of few lakh crore rupees. The summary of energy saving and investment can be
obtained from Table 23-17.
193

Table 23-17 : Summary of T&D Sector
Sl. No.
Particular
Value
Present T&D loss
21%
Improvement
10%
Monetary Saving
Energy saving at ` 5/kWh
` 35,000-40,000 crore
75 billion kWh
` 1,75,000-2,00,000 crore
23.18. Sugar Industry

It is estimated that almost 510% of saving is possible in sugar industry simply by better
housekeeping and another 10-15% by low cost retrofitting, use of energy efficiency devices
and controls. The quantum of saving is much higher if high cost measures like major retrofitting,
process modifications etc., are considered. Summary of estimated savings and investment
required in coming 5 years is shown in Table 23-18.
Table 23.18 : Summary of Sugar Industry
Sl. No.
Particular
Value
Total energy saving potential for envisaged annual

sugar production
Monetary Saving @ ` 5 per kWh
` 6,750 crore
` 33,750 crore
13.5 billion kWh
23.19. Indian Railways

Various energy saving initiatives by Indian Railways will facilitate railways in saving energy
up to 15% by the year 2020, through improved energy efficiency measures as laid down
in Railways vision document. The sector is also expected to save at least 10% energy using
solar power and biomass. Table 23-19 pictures the energy saving potential and investment
requirement in the sector.
Table 23-19 : Energy Saving Potential in Railway
Particular
Diesel
Electricity
0.405 billion litre
2.07 billion kWh
340.3 toe
0.396 million tce
Monetary saving (`)
1,620 crore
1,035 crore
Investment @ 5 year pay back (`)
8,100 crore
5,175 crore
Saving (@15%)
Energy Equivalent
194
23.20. Priority Areas for Energy Efficiency in India

To achieve potential energy savings as found out in this report, following measures shall be
taken on priority.
1.
Waste Heat Recovery system in Industries like Steel & Iron Sector, Thermal Power Plant,
Cement Industry, ceramic Industry, Sugar Industry and various SMEs.
2.
Use of Energy Efficient appliances in Industries, Agricultural sector and Buildings. Necessary
policies for use of energy efficient appliances like three (3) star rating appliances shall be
made mandatory in the beginning that should be gradually made more stringent like
use of higher star rating. There should be complete ban of inefficient/non-star rated
appliances.
3.
Efficient lighting system:Incandescent and fluorescent lamps are a wide-spread type of

lighting used. The disadvantage of fluorescent lamps is their low power factor caused
by inductive ballast while the disadvantage of incandescent lamps is its low efficiency
and diminutive life. Therefore, energy management is a very important under taking
as it controls energy consumed in this sector. All the public buildings and public places
shall be equipped with efficient energy lighting systems (say LEDs, CFLs etc.). Necessary
awareness and promotional measures for use of efficient lighting system by other sectors
shall be done on priority basis.
4.
Provision for Single Window Clearance for Energy Efficiency Projects. A nodal agency
shall be identified for providing single window clearance to agencies working for energy
efficiency/energy conservation related projects and shall coordinate and interact with
various govt. departments/organisations for providing the various clearances. The Single
Window will review the issues relating to the statutory clearances of various departments.
The clearances/approvals which are not accorded within the specified time period will
be dealt by the Single Window empowered committee.
5.
Promote greater awareness and compliance with energy conservation and energy
efficiency issues. Include this subject into school/collage curriculum for creating general
awareness.
6.
Capacity building and Training programmes regarding energy efficiency shall be made
mandatory in the annual training calendar of different corporate sectors for all level of
employees.
7.
Use of Energy Efficient & environmental friendly electrical/hybrid vehicles shall be

promoted through various financial incentives.
23.21. Roles & Responsibilities of Statutory Bodies/Authorities

towards implementation of measures
In order to facilitate implementation of various measures for energy efficiency, it is proposed
that following actions may be taken up by the Regulator, Statutory Authorities, BEE, state
designated agencies, and utilities etc.
195

Table 23-20 : Energy Efficiency Measures By various authorities
and statutory bodies
Sl. No. Activities
Role/Responsibility
Policies to encourage energy efficiency and for

identification of energy efficiency opportunities
MOP, State Governments in

association with BEE and SDA
respectively
Assessment / Reassessment of Energy Efficiency

Opportunities in each sector
BEE /SDA
Energy Audit
MOP/BEE
Implementation of Energy Efficiency Measures
Utilities/ESCO
BEE
Promotion of Electric / Hybrid vehicles
Ministry of Road Transport and

Highways, State Governments
Single Window Clearance for Energy Efficiency

Projects
MOP, State Governments
Capacity Building
BEE / SDA/EESL
23.22. Conclusion
Investment potential envisaged in this report and various international studies, it can be seen
that there are immense opportunities in the energy efficiency, which is likely to see a surge in
investment. Energy Efficiency efforts are widely recognised as a highly cost effective lever in
the light against climate change - they outcompete all renewable energy resources in terms of
carbon abatement costs- and in endeavours to improve countries energy security. To harvest
this potential and foster investment, governments around the world have been tightening EE
standards and launching incentive mechanisms. In India also, central government and various
state governments have also launched several policies, regulations and promotional mechanism
to facilitate in adaptation of energy efficiency measures.
196
Chapter
Financing for Energy Efficiency
24
24.1. Introduction
The implementation of energy efficiency projects often require substantial investments, in
order to carry out the energy audit, plan the project, purchase and install the equipment
M&V, as well as to train staff for the operation and maintenance of the system installed. So
far energy efficiency projects have a rather poor penetration in the financing community as
they are still viewed as higher risk investments, resulting in stiffer requirements for investors.
Therefore, basic types of financing mechanisms like debt financing, equity financing, grants
and guarantees etc. are not very popular for energy efficiency projects. Presently, most of
the energy efficiency financing programmes are government sponsored and only few success
stories using a market-based model are available. However, international aid agencies have
been developing several market-based business models, to become economically viable with
less or ultimately no government or donor support.
There is a need for innovative financing mechanisms for large number of small/large industries
to facilitate application of energy efficiency measures to overcome high initial investment
costs. These mechanisms shall be designed in such a way that they increase affordability for
users by spreading the repayment of the capital cost over longer periods. Examples include the
consumer finance, leasing and fee-for-service model, which are discussed as under [1].
Consumer Finance (CF)
The consumer financing(CF) approach implies consumers purchase their system from a dealer
on credit by making a down payment and financing the balance with a loan, making periodic
payments of capital and interest. The customer gets (gradual) ownership of the system.
Successful programmes have kept the down payment at or below 25-30% of the cash cost. By
maintaining a high volume of installations, dealers can also reduce the price because fixed costs
are spread over a large number of units. The flexibility of interest rates is limited. Sustinable
CF programmes can only reduce rates by seeking affordable financing, controlling operational
costs, minimizing loan defaults, and ensuring timely recovery of capital and interest. Finally,
adequate after sales service and end-user education are important since they prevent poor
system performance and therefore maintain cost recovery and achieve financial stability. The
main advantage of this approach is the increased affordability because the end-user can spread
out the repayment of the high initial cost. The key issues to consider are:
Creditworthiness of the customer;
Creditworthiness of the financial institution;
System quality and warranties provided by the dealer;
Clear and contractual arrangements between the dealer and the financial institution(s).
197

Leasing
In the leasing model, the leasing company procures systems on a wholesale basis, and then
offers for installation through retail lease agreements. In contrast to the CF approach, the
leasing company retains ownership of the system, although it is often gradually transferred to
the customer. The leasing company usually is a supplier/financial/development institution. The
payment from the customer cover the equipment costs, interest costs and a return on capital.
Most programmes also allow the customer to purchase the system when the lease expires.
The main advantage of this model are the increased affordability. Since the leasing company
retains ownership of the system, it may be easier for the leasing company than in the case of
consumer financing to secure capital and to disconnect delinquent customers.
Fee-for-Service or ESCO
A fee-for-service approach, also known as an energy service company(ESCO) model, seems to
offer the best prospect for widespread access to sustainable energy services. ESCOs intervene in
two aspects of the financing structure; first, in downsizing the initial costs of systems by offering
a staggered payment and fee for service models; second, in serving as financial intermediaries in
consumer bank loan procurements and guarantees for securing loans. This form of intervention
induces a reduction in risk perception in the banking sector, enables consumer access to bank
lending and enhances sales for manufacturers and suppliers of equipment.
The main advantages of this approach are:
Simplicity: the customer signs a contract with a service provider for the installation,
maintenance and repairs of the system, and agrees to make periodic payments in
return;
Flexibility for customers and service provider: since the customer never takes ownership
of the system, the service provider can simply remove the system and transfer it to another
customer no longer wants to pay for the service;
Affordability: since the investment can be recovered over the life of the system,
the periodic payments and the transaction costs are lower than for the alternative
models, and unexpected large-scale expenses for major components or repairs are
avoided.
24.2. Incentive for Energy-Efficient Equipment

Tariff and non-tariff support are required to promote the installation of energy efficient
equipment at Industries, residences and other commercial establishments. Recently, the State
Governments of Delhi and Haryana announced a marginal reduction in the value added
tax on the sale of compact fluorescent lamps (CFLs), an energy efficient bulb. Haryana was
providing tariff subsidy for solar water heating system in the electricity bill. It is likely that in the
future such schemes will be extended to offer reductions in excise and custom duties on other
types of energy conservation equipment.
24.3. Incentives and rebates from IREDA and other agencies [2]
In addition to the rebates provided by the Indian government, key financial intermediaries
supported by the Government of India offer incentives and rebates to promote EE projects.
These include:
198
Interest rebate of 1% for furnishing security of a bank guarantee or a pledge of fixed


deposit receipt or an unconditional and irrevocable guarantee of an All India Public
Financial Institution with an AAA rating or the equivalent;
Interest rebate of 0.5% for timely payment of interest and repayment of loan instalments;
and
Special concessions for entrepreneurs belonging to under-privileged sections of society

and for entrepreneurs establishing EE projects in specific locations.
In addition to above measures, IREDA offers a 100% grant for carrying out pre-implementation
activities, including an energy audit and preparation of detailed project reports. These grants
are provided on a cost-reimbursable basis upon loan approval (i.e. after the audit and analysis
have resulted in a bankable project). Similarly, State Nodal Agencies for EE in some states, such
as the Maharashtra Energy Development Agency and the Gujarat Energy Development Agency,
offer grants of ` 25,000 which can be applied towards the cost of energy audits carried out by
industries and public sector organizations (urban local bodies).
24.4. Small Industries Development Bank of India (SIDBI)

SIDBI provides finance to MSMEs at a concessional rate of interest of about 1% less than
the market rate for the purpose of Energy Efficiency promotions. Other leading financial
institutions and agencies like Power Finance Corporation and Rural Electrification Corporation
also provide finance for energy efficiency projects at concessional rate of interest.
24.5. Types of Financing

The World Bank
The World Bank supported a multi-year pilot effort to promote the removal of barriers to EE
financing in India, Brazil, and China. The projects final report includes case studies of IREDAs
Energy Efficiency Loan Fund, cluster EE lending for small and medium enterprises (SMEs) by
Indian banks, and for leasing of energy efficiency equipment (Taylor et. al, 2008). The World
Bank previously provided a line of credit of USD 350 million (` 21 lakh Cr.) to ICICI Bank for
EE, and a line of credit (` 30 Cr.) and technical assistance to IREDA for the Second Renewable
Energy project [2].
Asian Development Bank (ADB)
ADB has been instrumental in initiating and funding the Industrial Energy Efficiency Project
in India in promoting efficient and environmentally sustainable industrialization. The projects
objective was to support specific government initiatives, including expanding energy sector
reforms toward DSM of energy-intensive industries, reducing energy shortages by increasing
EE, improving the overall efficiency and international competitiveness of the industries, and
integrating environmental considerations into project design and implementation [2].
Commercial EE Financing
Most of the EE initiatives tend to be funded by the promoters themselves. ICICI Bank and Yes
Bank, have also undertaken initiatives to finance EE projects. In general, banks have decided
to roll EE projects into their overall portfolio and use general lending criteria and requirements
to evaluate EE projects [2].
Cluster Lending for SMEs by Public Sector Indian Banks
The term cluster lending refers to lending operations targeted at industries that share economic
199

interests or policy concerns. Cluster lending programs support investments that (1) increase
SME competitiveness through the upgrading of technologies, (2) decrease operational and
production costs through reduced wastage and increased efficiencies, (3) increase productivity,
or (4) improve product mix. Lending to SMEs is a government-mandated priority for Indian
banks, which reflects the Governments view that SMEs play a critical role in generating
economic growth, employment, and exports [2].
24.6. Practices in other Countries

Italy
Italy has provided tax deduction of 55% of the amount payable by the taxpayer for interventions
in energy efficiency for existing buildings keeps on having excellent results. In 2009 there were
2,36,700 interventions with a primary energy savings estimated of 1,487 GWh/year and CO2
avoided of 317,000 t/year, in 2010, 405,600 interventions with a primary energy savings
estimated of 2,032 GWh/year and CO2 avoided of 4,30,000 t/year.
France
In France since 2005, private individuals have been eligible for a tax credit to purchase the
most efficient materials or equipment in the area of energy saving or of production of energy
from renewable sources under Sustainable Development Tax Credit (CIDD) [4]. The country
has been providing Zero-rated eco-loan (eco-PTZ) since April 2009 which was designed for
occupants or landlords to finance major renovation work which finanrces up to 30,000 of
work to improve the energy efficiency of a dwelling over a period of 10 years [4]. Investments
in residential building renovation have also been stimulated by tax credit scheme (CIDD).
French government also established a combined bonus and penalty system to encourage the
purchase of low polluting vehicles.
China
In China the 11th FYP saw an estimated cumulative investment of CNY 859 trillion in energy
efficiency, approximately 15% of which came from central and local governments, and 85%
from commercial banks, host enterprises or ESCOs, most of them state-owned. The industrial
sector represented the largest share of investments at 64%, followed by the building sector
at 30%. Direct government spending and bank loans were the primary sources of financing.
To increase access to financing, the World Bank introduced the China Utility-based Energy
Efficiency (CHUEE) Finance Programme. The programme targets residential, commercial and
industrial consumers and provide marketing, engineering, project development and financing
services including partial loan guarantee for energy efficiency projects.
Australia
Australia has spent AUD 3.9 billion for the Energy Efficient Home Package (EEHP) including
Home Insulation Programme (HIP). Home owners with eligible dwelling units were able to
claim the cost of installation of ceiling insulation. Under this scheme about 1.16 million roofs
were insulated as of March 2010 at the cost of AUD 1.45 billion. The benefits were calculated
to be AUD 3.9 billion from avoided space heating and cooling energy requirements by 2020,
saving of 2,30,000 toe per year and greenhouse gas emission reduction of 10 million tonnes
of CO2 [5].
Canada
Manitoba Hydro Power in Canada introduced a Smart Pays Programme, which was introduced
200

at the end of 2012. This programme provides a mechanism for efficiency upgrades to be
financed through a loan to the homeowner that is repaid through the monthly energy bill.
The term of the loan is tied to the extent of upgrades and the monthly financing payment is
less than the estimated annual energy savings averaging out on a monthly basis. The rate of
interest is fixed at 3.9% and the programme also allows loans to be transferred with the sale
of the home.
24.7. Barriers to EE Financing

There are lots of apprehensions and barriers exist in getting funds for Energy Efficiency Projects.
Though there are various barriers for EE financing, two main barriers are: information and
financial.
Lack of reliable information
There is a lack of systematic and reliable information available on the EE potential in the Indian
economy (by sector, subsector, consumer and project type) and the details of EE projects
financed in India (by banks, financial institutions, and other investors). A limited number of
feasibility studies are available. There are few RE/EE project developers active in the market.
This hinders the development of large-scale EE investment plans, government programs to
support EE investment, and the evaluation of past programs.
Lack of bank awareness
Up-front costs of EE projects are high. Access to finance for research, development and
manufacturing are Inadequate. Perception of high investment risks by financiers. Lenders are
unfamiliar with EE technologies and approaches and require technical support to appraise
benefits and manage lending to EE projects. Some of the banks have stated in conducted
surveys that lack of awareness on the part of the project proponents and lack of trained
personnel within the bank were the major barriers limiting lending for EE projects.
Information dissemination to large numbers of small-scale users
Indias industrial structure results in a very large number of small and medium enterprises
(approx. 3 million firms), which contribute to about 17% of the countrys GDP. Reaching the
decision-makers of these firms to facilitate the implementation of EE projects poses significant
hurdles and increases transaction costs. These factors usually result in the risk of a proposed
EE project being overratedand the required viability hurdle rate becoming untenable.
Affordablefinancing is therefore one of the critical factors inhibiting the wider realization of EE
projects.
24.8. Conclusion
The financiers perspective and approach towards EE investments is basedon the assessment and
control of risks on the one hand, and the calculation andestimation of returns on the other. The
resulting risk/return profile determinesthe attractiveness for the investor, highlights the remaining
uncertainties andestablishes the conditions for the project developer to secure the financing.
A range of funding options and combinations is available, including debt, loans,equity, grants
and guarantees. Different models are available and have beentried, from models coordinated
and managed by governments, with or withoutsome form of interaction with private market
players, to the ESCO models, whichinvolve a higher degree of market participation.A strategy
aiming to attract more private sector funding should provide thefollowing incentives:
Lower investment costs for investors: instrumentsinclude subsidies, tax measures,
201
Fewer risks for investors: governments and development organizations canprovide

guarantees, while private investors should get familiar with thespecific nature of EE
projects in order to better assess, control andprice the risks and returns;
More investor confidence by adopting legal frameworks setting long-term targetsand

incentives;
More awareness: there is a clear need for capacity-building among a rangeof stakeholders,
including local bankers, industries, and NGOs;
Lower transaction costs by developing new and innovative tools to addressthe often
small-scale nature of EE projects.
24.9. Reference
202
1.
Training Manual on Sustainable Energy Regulation and Policymaking for Africa available
at
http://www.unido.org/en/what-we-do/environment/energy-access-for-productiveuses/renewable-energy/selected-projects/training-package.html.
2.
Financing Energy Efficiency in India, USAID, Nov 2008.
3.
Energy Efficiency Policies and Measures in Italy, ODYSSEE- MURE 2010, ENEA.
4.
Energy Efficiency Policies and Measures in France in 2012, ADEME.
5.
Home Insulation Program, commonwealth of Australia 2010.
Annexure-I
Thermal power generation units in India
older than 25 years
Sl.
No.
Name
Capacity (MW)
Year of Commission
(in order)
Vindhyachal Thermal Power Station
210x2
1987,88
Korba Super Thermal Power Plant
200x3, 500x2
1983,83,83,87,88
Chandrapur Super Thermal Power

Station
210x4
1983,84,85,86
Wanakbori Thermal Power Station
210x6
1982,83,84,86,86,87
Satpura Thermal Power Plant
62.5, 200, 210x3
1967, 79, 80, 83, 84
Parli Thermal Power Plant
210x3
1979,80,81
Gandhinagar
Station
120x2
1977, 77
Ukai Thermal Power Station
120x2, 200x2,
210
1976, 76, 79, 79, 85
Hasdeo Thermal Power Station
210x4
1983, 84, 85, 86
10
Nashik Thermal Power Plant
210x3
1979, 80, 81
11
Koradi Thermal Power Station
200, 210x2
1978, 82, 83
12
Amarkantak Thermal Power Plant
120x2
1977,78
13
Bhusawal Thermal Power Plant
210x2
1979, 82
14
Sikka Thermal Power Station
120x1
1988
15
Farakka Super Thermal Power Plant
200x3
1986, 86, 87
16
Kolaghat Thermal Power Station
210x2
1984,86
17
Chandrapura
Station
130x3
1964, 65, 68
18
Durgapur Thermal Power Station
140, 210
1966, 82
19
Santaldih Thermal Power Station
120x4
1974, 75, 78, 81
20
Bandel Thermal Power Station
60x4, 210
1965, 66, 66, 83
21
Rihand Thermal Power Station
500x1
1988
22
Singrauli Super Thermal Power

Plant
200x5, 500x2
1982, 82, 83, 83, 86,

87
Annexures
Thermal
Thermal
Power
Power
203

Sl.
No.
Name
Year of Commission
(in order)
210x2
1987, 87
50x2, 100x2,
200x5
1967, 68, 74, 76, 78,

79, 80, 81, 82
210x3
1984, 85, 88
110x2, 210x1
1983, 83, 88
210x1
1988
23
Anpara Thermal Power Station
24
Obra Thermal Power Station
25
Guru Gobing Singh Super Thermal

Power Plant
26
Kota Thermal Power Plant
27
Feroze Gandhi Unchahar Thermal

Power Plant
28
Badarpur Thermal Power Station
95x3, 210x2
1973, 74, 75, 78, 81
29
Parichha Thermal Power Station
110x2
1984, 85
30
Guru Nanak Dev Thermal Plant
110x4
1974, 75, 78, 79
31
Harduaganj Thermal Power Station
60, 105
1977, 78
32
Panki Thermal Power Station
110x2
1977, 77
33
NTPC Ramagundam
200x3, 500
1983, 84, 84, 88
34
Dr Narla Tata Rao Thermal Power

Plant
210x2
1979, 80
35
Raichur Thermal Power Station
210x2
1986, 86
36
Kothagudem Thermal Power Plant
60x4, 120x4
1966, 66, 67, 67, 74,

74, 77, 78
37
Neyveli Thermal Power Station
50x6, 100x3
1962, 62, 62, 62, 62,

62, 70,70,70
38
Tuticorin Thermal Power Station
210x3
1979, 80, 82
39
Mettur Thermal Power Station
210x2
1987, 87
40
Ennore Thermal Power Station
60x2, 110x3
1970, 71, 72, 73, 75
41
Ramagundam B Super Thermal

Power Plant
62.5x1
1971
42
Titagarh Thermal Power Station
60x4
1982-85
43
Panipat Thermal Power Station
110x4
1979, 80, 85, 87
Total
204
Capacity (MW)
25035
Annexures
Annexure-II
Recommended Light Levels
Light Level or Illuminance, is the total luminous flux incident on a surface, per unit area.
Illuminance is measured in foot candles (ftcd, fc, fcd) (or lux in the metric SI system).
1 lux = 1 lumen / sq meter = 0.0001 phot = 0.0929 foot candle (ftcd, fcd)
1 phot = 1 lumen / sqcentimeter = 10000 lumens / sq meter = 10000 lux
1 foot candle (ftcd, fcd) = 1 lumen / sqft = 10.752 lux
Light intensity (in lux) in work areas for performance of selected tasks in houses
Sl. No.
Tasks in houses
Mean recommended value (lux) #
Writing (at the study table)
350
Reading (leisure reading in bed)
325
Cooking (at cooking center)
375
Dressing (at dressing table)
225
Ironing (at board or table)
200
Light intensity (lux) in private and activity zones of selected houses

Sl. No.
1
2
3
4
Activity zones in houses

Kitchen
Bed room
Bathroom
Store room

375
185
250
100
Light intensity (lux) in social zones of selected houses

Sl. No.
1
2
3
4
Social zones in houses

Entrance
Stairs
Living room
Lobby

475
185
185
150
# Recommendations given by National Building Code of India Part V111, 2002
Annexures
205
LED Lights vs Incandescent Lights vs CFLs
Light Emitting
Diodes(LEDs)
Incandescent
Light Bulbs
Compact Fluorescents
(CFLs)
Energy Efficiency & Energy Costs

Life Span (average)
50,000 hours
1,200 hours
8,000 hours
Watts of electricity used

(equivalent to 60 watt bulb)
6 - 8 watts
60 watts
13-15 watts
Environmental Impact
Contains the TOXIC
Mercury
No
No
Yes
RoHS Compliant
Yes
Yes
No - contains 1mg-5mg of
Mercury and is a major risk to the
environment
Sensitivity to low
temperatures
None
Some
Yes - may not work under

negative 10 degrees Fahrenheit
or over 120 degrees Fahrenheit
Sensitive to humidity
No
Some
Yes
Switching On/off
No Effect
Some
Yes - can reduce lifespan

drastically
Turns on instantly
Yes
Yes
No - takes time to
warm up
Durability
Very Durable - LEDs

can handle jarring and
bumping
Not Very Durable - glass

or filament can break
easily
Not Very Durable - glass can

break easily
Heat Emitted
3.4 btus/hour
85 btus/hour
30 btus/hour
Failure Modes
Not typical
Some
Yes - may catch on fire, smoke,

or omit an odor
Cycling
Light Output
206
Lumens
Watts
Watts
Watts
450
4-5
40
9-13
800
6-8
60
13-15
1,100
9-13
75
18-25
1,600
16-20
100
23-30
2,600
25-28
150
30-55
Annexures
Annexure-III
Cost of Appliances
Annexures
Equipment
Cost (`)
Direct Cool Refrigerator
10,000
Fan
2,000
Tube light T5
600
LED
1,200
Window AC
20,000
Air cooler
5,000
207
Annexure-IV
Energy saving tips for house hold
Air-Conditioner
1.
Set the thermostat at an optimal temperature say 24 to 26oC (as comfortably) possible in
the summer
2.
Cool the room at no load
3.
Set operational time limit to AC while sleeping
4.
Consider using an interior fan along with the air conditioner
5.
Avoid placing appliances that give off heat such as lamps or TVs near a thermostat
6.
Replace old ACs with energy star rated ones
7.
It is advisable to use a heat pump instead of electrical resistance heater
8.
Use electric blanket instead of room heater while sleeping
9.
The selection of the AC should be carefully done based on the maximum load in the
room. A higher capacity AC will always absorb more power
Motor
1.
Select energy efficient motors (Star Rated)
2.
Selection of motor and the adjoining pipe is to be considered together
3.
Provide proper ventilation for sufficient heat transfer from the motor surface
Geyser
1.
Lower the thermostat on your water heater (say 120F)
2.
Periodic cleaning of geyser-for scale removal
3.
Use Solar Water Heater
Miscellaneous
208
1.
Switch OFF devises (TV, Light, AC etc.) when not in use
2.
Avoid standby mode, when not in use switch off the appliances
3.
Buy only energy efficient products (Star Rated)
4.
Use equipments only at full load
Annexures
Annexure-V
BEE Star Rating
Buildings
Ratings for buildings having
< 50% air-con
Ratings for buildings with

> 50% air-con
EPI (kWh/m2/
year)
Star Label
EPI (kWh/m2/
year)
Star Label
80-70
190-165
70-60
**
165-140
**
60-50
***
140-115
***
50-40
****
115-90
****
BELOW 40
*****
BELOW 90
*****
85-75
200-175
75-65
**
175-150
**
65-55
***
150-125
***
55-45
****
125-100
****
BELOW 45
*****
BELOW 100
*****
75-65
180-155
65-55
**
155-130
**
55-45
***
130-105
***
45-35
****
105-80
****
BELOW 35
*****
BELOW 80
*****
COMPOSITE
WARM
&
HUMID
HOT & DRY
Annexures
COMPOSITE
WARM
&
HUMID
HOT & DRY
209

Air Conditioning
Split Air conditioner (Valid From 01-01-2014 to 31-12-2015)
Energy Efficiency Ratio (Watt/Watt)
Star level
Minimum
Maximum
1 Star *
2.70
2.89
2 Star **
2.90
3.09
3 Star ***
3.10
3.29
4 Star ****
3.30
3.49
5 Star *****
3.50
Window Air Conditioner (Valid From 01-01-2014 to 31-12-2015)

Energy Efficiency Ratio (Watt/Watt)
Star level
1 Star *
2 Star **
3 Star ***
4 Star ****
5 Star *****
Minimum
Maximum
2.50
2.70
2.90
3.10
3.30
2.69
2.89
3.09
3.29
Direct Cool Refrigerator (Valid from 01 Jan. 2012 to 31 Dec. 2014)

Star Rating Band
1 Star *
2 Star **
3 Star ***
4 Star ****
5 Star *****
Constant Multiplier,
kdc(kWh/Litre/Year)
Constant Fixed Allowance,

cdc(kWh/Year)
0.330
0.264
0.211
0.169
0.108
277
221
177
141
91
Frost Free Refrigerator (Valid from 01 January 2012 to 31 December 2013)

Constant Multiplier, kdc
(kWh/Litre/Year)
Constant Fixed Allowance,

cdc (kWh/Year)
1 Star *
0.4463
389
2 Star **
0.3570
311
3 Star ***
0.2856
249
4 Star ****
0.2285
199
5 Star *****
0.1828
159
Star Rating Band
210
Annexures

Pump Sets
Overall energy efficiency
of pump set (BIS = 1.0)
BEE-SLS Star Rating

1 Star *
>= 1.0 and <1.05
2 Star **
>= 1.05 and <1.10
3 Star ***
>= 1.10 and <1.15
4 Star ****
>= 1.15 and <1.20
5 Star *****
>= 1.20
Tubular Fluorescent Lamp

The referred Indian Standards are IS 2418 (part I) and (part II) 1977 including all the
amendments. The energy labelling scheme covers 4 feet tubular fluorescent lamps for wattages
upto 40W. The scheme shall cover 6500K colour temperature for halo-phosphates and 6500K,
4000K & 2700K for tri-phosphate category.
Star Rating
**
***
****
*****
Lumens per Watt at

0100 hrs of use
<61
>=61 &<67 >=67 &<86 >=86 &<92
>=92
Lumens per Watt at

2000 hrs of use
<52
>=52 &<57 >=57 &<77 >=77 &<83
>=83
Lumens per Watt at

3500 hrs of use
<49
>=49 &<54 >=54 &<73 >=73 &<78
>=78
Motors
Star Rating
Motor Efficiency Class
1 Star
IE2 &<IE2(+)
2 Star
IE2(+) &<IE3
3 Star
>= IE3 &<IE3(+)
4 Star
>=IE3 (+) &< IE3(++)
5 Star
IE3(++)
Annexures
211

Distribution Transformer
(Voltage Ratio 11000/433 250 V)
Rating
1 Star
2 Star
3 Star
4 Star
5 Star
kVA
Max.
losses
at 50%
(Watts)
Max.
losses at
100%
(Watts)
Max.
losses
at 50%
(Watts)
Max.
losses at
100%
(Watts)
Max.
losses
at 50%
(Watts)
Max.
losses at
100%
(Watts)
Max.
losses
at 50%
(Watts)
Max.
losses at
100%
(Watts)
Max.
losses
at 50%
(Watts)
Max.
losses at
100%
(Watts)
16
200
555
165
520
150
480
135
440
120
400
25
290
785
235
740
210
695
190
635
175
595
63
490
1415
430
1335
380
1250
340
1140
300
1050
100
700
2020
610
1910
520
1800
475
1650
435
1500
160
1000
2800
880
2550
770
2200
670
1950
570
1700
200
1130
3300
1010
3000
890
2700
780
2300
670
2100
Ceiling Fans
Star Rating Index Calculation for Ceiling Fans
Star Rating
Service Value for Ceiling Fans*
1 Star
3.2 to < 3.4
2 Star
3.4 to < 3.6
3 Star
3.6 to < 3.8
4 Star
3.8 to < 4.0
5 Star
4.0
*The BIS has proposed from the year 2010 the service value of 3.5.
*All ceiling fans covered under this standard shall comply with minimum Air Delivery of 210
cu m/min.
LPG Gas Stove
Star Rating
212
Thermal Efficiency (As per IS 4246:latest)
1 Star
Thermal efficiency 68% &<72%
2 Star
3 Star
4 Star
5 Star
Thermal efficiency 81%
Annexures

Electric Geysers (Standing losses calculated as per IS 2082:1993)
Rated Capacity
(Liters)
1 Star
2 Star
3 Star
4 Star
5 Star
Capacity (Liters) Standing Losses (kwh/24 hour/450C)
0.792 &
> 0.634
0.634 &
> 0.554
0.554 &
> 0.475
0.475 &
> 0.396
0.396
10
0.990 &
> 0.792
0.792 &
> 0.693
0.693 &
> 0.594
0.594 &
> 0.495
0.495
15
1.138 &
> 0.910
0.910 &
> 0.797
0.797 &
> 0.683
0.683 &
> 0.569
0.569
25
1.386 &
> 1.109
1.109 &
> 0.970
0.970 &
> 0.832
0.832 &
> 0.693
0.693
35
1.584 &
> 1.267
1.267 &
> 1.109
1.109 &
> 0.950
0.950 &
> 0.792
0.792
50
1.832 &
> 1.466
1.466 &
> 1.282
1.282 &
> 1.099
1.099 &
> 0.916
0.916
70
2.079 &
> 1.663
1.663 &
> 1.455
1.455 &
> 1.247
1.247 &
> 1.040
1.040
100
2.376 &
> 1.901
1.901 &
> 1.663
1.663 &
> 1.426
1.426 &
> 1.188
1.188
140
2.673 &
> 2.138
2.138 &
> 1.871
1.871 &
> 1.604
1.604 &
> 1.337
1.337
200
2.970 &
> 2.376
2.376 &
> 2.079
2.079 &
> 1.782
1.782 &
> 1.485
1.485
Television
LCD and Plasma TVs
Energy Consumption Allowances for LCD and Plasma
Screen
Size (cm)
Screen
Area (sq
cm)
Max Annual
Power
Consumption
for 1 Star
(kWh/Year)
Max Annual
Power
Consumption
for 2 Star
(kWh)/Year
Max Annual
Power
Consumption
for 3 Star
(kWh/Year)
Max Annual
Power
Consumption
for 4 Star
(kWh/Year)
Max Annual
Power
Consumption
for 5 Star
(kWh/Year)
P = (0.964 x A)
+ 4.38
P = (0.876 x A)
+ 4.38
P = (0.788 x A)
+ 4.38
P = (0.701 x A)
+ 4.38
P = (0.613 x A)
+ 4.38
50.8
434.1
169
154
139
124
109
66.0
733.8
283
257
232
207
181
81.3
1111.5
426
388
349
311
273
94.0
1485.9
568
517
465
414
363
106.7
1914.7
731
665
598
533
466
116.8
2296.7
876
796
717
638
559
127.0
2713.2
1034
940
846
753
659
139.7
3283.2
1250
1137
1023
910
797
Annexures
213

CRT TVs
Screen Size Screen Area
(inches)
(sq inches)
Max. Annual Power Consumption for (kWh/Year)

1 - Star
2 - Star
3 - Star
4 - Star
5 - Star
P = (0.964 x A)
+ 4.38
P = (0.876 x A)
+ 4.38
P = (0.788 x A)
+ 4.38
P = (0.701 x A)
+ 4.38
P = (0.613 x A)
+ 4.38
14
94.1
95
87
79
70
62
21
211.7
208
190
171
153
134
29
403.7
394
358
322
287
252
32
491.5
478
435
392
349
306
Annual power consumption estimate is based on a daily usage pattern of 6 hours in ON Mode
and 12 hours in Standby Mode.
214
Annexures
Annexure-VI
State-wise details of Agricultural Pumps and the saving potential
Sl.
No.
State
Power
consumption
(MU)
Saving
potential (MU)
@30%
Saving in
` crore @3.5/
kWh
No. of pumps
Investment
required @
` 50,000 per
pump (Crore)
0.1
0.03
0.0105
20
0.1
14480
4344
1520.4
2831957
14159.79
Andaman Nicobar
Andhra Pradesh
Assam
5.6
1.68
0.588
1095
5.475
Bihar
305
91.5
32.025
59651
298.255
Chandigarh
1.3
0.39
0.1365
254
1.27
Chhattisgarh
1413
423.9
148.365
276351
1381.755
Dadra & Nagar Haveli
0.13
0.039
0.01365
25
0.125
Daman & Diu
2.4
0.72
0.252
469
2.345
10
Delhi
37
11.1
3.885
7236
36.18
11
Goa
5.72
1.716
0.6006
1119
5.595
12
Gujarat
11950
3585
1254.75
2337147
11685.74
13
Haryana
6700
2010
703.5
1310367
6551.835
14
Himachal Pradesh
26.5
7.95
2.7825
5183
25.915
15
J&K
196
58.8
20.58
38333
191.665
16
Jharkhand
59
17.7
6.195
11539
57.695
17
Karnataka
10981.5
3294.45
1153.058
2147731
10738.66
18
Kerala
240
72
25.2
46939
234.695
20
Maharashtra
4893
1467.9
513.765
3956959
19784.8
22
Madhya Pradesh
7032
2109.6
738.36
1375299
6876.495
23
Meghalaya
0.61
0.183
0.06405
119
0.595
26
Orissa
147
44.1
15.435
28750
143.75
27
Pondicherry
81.63
24.489
8.57115
15965
79.825
28
Punjab
8500
2550
892.5
1662406
8312.03
29
Rajasthan
8140
2442
854.7
1591998
7959.99
31
Tamil Nadu
10030
3009
1053.15
1961639
9808.195
32
Tripura
4.79
1.437
0.50295
937
4.685
33
Uttar Pradesh
5393
1617.9
566.265
1054748
5273.74
34
Uttrakhand
300
90
31.5
58673
293.365
35
West Bengal
1110
333
116.55
217091
1085.455
92035.28
27610.584
9663.704
2,10,00,000
1,05,000
Total
Annexures
215
Annexure-VII
State-wise details of Municipality Pumps and the saving potential
Sl.No.
State
Power
consumption
(MU)
Saving (MU)
@ 30%
Savings in
crore @
` 4.5/unit
No. of pumps
Investment
@ ` 60,000/
pump in crore
Andaman Nicobar
0.71
0.213
0.096
139
0.83
Andhra Pradesh
639.58
191.874
86.33
125520
753.12
Arunachal Pradesh
3.65
1.095
0.48
716
4.29
Assam
37.31
11.193
5.04
7322
43.93
Bihar
150.98
45.294
20.3
29630
177.78
Chandigarh
28.03
8.409
3.78
5501
33.00
Chhattisgarh
94.8
28.44
12.79
18605
111.62
Dadra &Nagar Haveli
9.36
2.808
1.26
1837
11.02
Daman & Diu
3.89
1.167
0.52
763
4.58
10
Delhi
207.39
62.217
27.99
40701
244.20
11
Goa
122.15
36.645
16.48
23972
143.83
12
Gujarat
1027.44
308.232
138.70
201640
1209.84
13
Haryana
415.06
124.518
56.03
81457
488.74
14
Himachal Pradesh
334.92
100.476
45.20
65730
394.37
15
J&K
460.23
138.069
62.125
90322
541.93
16
Jharkhand
69.28
20.784
9.347
13597
81.58
17
Karnataka
1634.46
490.338
220.65
320770
1924.62
18
Kerala
321.19
96.357
43.35
63035
378.21
20
Maharashtra
1489.44
446.832
201.0729
292309
1753.85
21
Manipur
10.01
3.003
1.35
1965
11.78
22
Madhya Pradesh
658.19
197.457
88.86857
129173
775.04
23
Meghalaya
24.96
7.488
3.36
4899
29.39
24
Mizoram
28.71
8.613
3.87
5634
33.81
25
Nagaland
1.7
0.51
0.218
334
2.00
26
Orissa
181.17
54.351
24.45
35555
213.33
27
Pondicherry
26.21
7.863
3.53
5144
30.86
28
Punjab
333.51
100.053
45.01
65453
392.71
29
Rajasthan
1162.17
348.651
156.88
228081
1368.48
31
Tamil Nadu
871
261.3
117.57
170938
1025.62
32
Tripura
33.99
10.197
4.58
6671
40.024
33
Uttar Pradesh
745.1
223.53
100.58
146229
877.37
34
Uttrakhand
217.38
65.214
29.34
42662
255.97
35
West Bengal
477.42
143.226
64.44
93696
562.17
11821.39
3546.42
1595.5
23,20,000
13,920.00
Total
216
Annexures
Annexure-VIII
Railway map of India
(Source: mapsofindia.com)
Annexures
217
Annexure-IX
Summary of Energy Efficiency Initiatives by States
Policy
Regulatory and control Mechanisms
Promotional and market transformation mechanisms-Energy

Efficiency/Conservation
Kerala
Energy Management Cen- Energy audit is compulsary in every three years. At least
ter
5% renewable energy is mandatory if the load exeeds
2000kvA in industries. Fluorescent and CFL are compulsary in some organizations
Tamil Nadu
Tamil Nadu Energy Devel- The commercial and other major buildings in the state TEDA organizes awareness proopment Agency
may have to adhere to Energy Conservation Building grammes.
Code (ECBC) as the process is on to make it mandatory in
order to conserve energy.
Incandescent bulbs are banned and three-star energy efficiency rating had been made mandatory for electrical
appliances procured by government departments.
It has become mandatory for all the government buildings to install solar roof top systems to supplement the
power supply.
The use of solar water heating system is also mandatory
for all designated new houses, buildings, marriage halls,
hotels etc. and will be mandatory for all the industries using hot water boiler/ steam boiler using fossil fuels.
Karnataka
Karnataka
Renewable The government of Karnataka has made it mandatory that
Energy Agency Limited all utilities consuming 500 kW and above should compul(KREDL)
sorily conduct energy audit.
Government under section 18 of the EC Act 2001 has
mandated for use of Solar Water Heating Systems and
CFLs in Government buildings, aided institutions, Boards
and Corporations.
It is also mandatory to install Solar Water Heaters in residential and commercial buildings having plinth area of
more than 600 sq ft. In the lighting sector, BelakuYojana
is being implemented to replace Incandescent bulbs by
CFLs to save Energy.
In agriculture sector, the use of BEE standard energy efficiency pumps is made mandatory.
First DSM Centre in the Country. Center have a permanent

product exhibition on efficient
lighting, pumping, water heating, air-conditioning, and refrigeration.
Andhra
Pradesh
Non Conventional Energy The state recently adopted an Energy Conservation BuildDevelopment Corporation ing Code (ECBC) for large commercial and public buildof Andhra Pradesh Ltd
ings and major retrofits.
State is planning to enforce

green factory building code
aiming at rationalisation of land,
energy and water utilisation by
the industries. Adopting the
ECBC as mandatory.
Jammu
Kashmir
Himachal
Pradesh
218
Nodal agency for Energy

conservation/Energy
efficiency/ Renewables
& Jammu & Kashmir energy

Development Agency
Director (Enforcement and

Energy Audit), office of the
Engineer (Commercial),
H.P. State Electricity Board
Energy Clinic and Transport clinic

Programmes by Govt. of Kerala.
Every year award by EMC in six
different categories.
---------------------------------------------
Energy efficient solar buildings

are constructed based on the
techniques of solar passive design.
Programme for recovery of energy from Industrial waste heat
to accelerate the installation of
energy recovery projects.
By the Policy on solar passive housing,solar passive building technology has been made mandatory in Himachal
Pradesh under which all the departments including Corporations, Boards, Universities, HP Housing Board and
HPPWD should incorporate features of solar passive
technology in their designs at places above 2000 meters
(msl) vide H.P. Govt. notification.
In order to conserve energy,

HIMURJA has provided Pressure Cookers and CFL Systems
to identified families on subsidized.
Annexures

Policy

conservation/Energy
Sikkim
Sikkim Renewable Energy

Development Agency
Punjab
Energy Conservation Ac- Government issued notification for the mandatory use
tion Plan Team
of solar water heating systems in buildings (having area
of more than 500 sq.yds.), Compact fluorescent lamps
(CFLs), BIS marked pump sets (min BEE 4 star and ISI
marked) in govt. and private sector and promotion of Energy Efficient Building Design.
The building of Punjab Mini

Secretariat, Sector-9, Chandigarh has been selected as model
demonstration project for implementation of energy efficiency
measures through ESCO route
West Bengal
West Bengal Renewable

Energy
Development
Agency
---------------------------------------------
WBREDA has initiated a programme to organize a workshop

with different Municipal Authorities of North Bengal and South
Bengal for creating awareness of
use of Solar PV, Solar Thermal,
Municipal Solid Waste etc. in
the urban areas.
Uttarakhand
Uttarakhand Renewable
Energy
Development
Agency
---------------------------------------------
The RoshanGhar Programme to increase the use of Compact

Fluorescent Lights and high efficiency fluorescent tube lights
in homes.
Public Buildings Partnership Programme -implementing energy
efficiency measures in public
buildings.
Solar Water Heating Programmeimplementing energy efficiency
in residential, public & domestic
buildings.
Industrial Energy Conservation
Programme is targeted towards
improving the productivity and
lowering the specific energy
costs of small and medium Industries
Gujarat
Gujarat Electricity Devel- Energy Audit by all industries is mandatory

opment Agency
Already taken energy efficiency

initiatives which includes demo
projects on LED, replacement
of old inefficient pumps with
energy-efficient ones etc.
Madhya
Pradesh
M.P. UrjaVikas Nigam Ltd
The Madhya Pradesh government has ordered carrying

out mandatory energy audit and energy conservation
measures in all the government, semi-government, corporation and board offices of the state with a view to reducing consumption of power and checking its misuse.
DFID has appointed PWC as a

consultant for technical assistance to M.P. UrjaVikas Nigam.
UrjaVikas Nigam Limited has
technically trained manpower
for conducting energy audit.
Maharashtra
Maharashtra Energy Devel- Energy Audit Mandatory for all industries.

opment Agency (MEDA)
ECBC norms to be followed in all the new commercial
constructions.
Technical and financial assistance

to eligible organizations for carrying out walk through energy
audit at their facilities through
the empanelled consultants with
MEDA. State Level Award for Excellence in Energy Conservation
and Management.
Street Lighting & water pumping
Scheme for Municipal corporation/ Municipal Council / MJP.
Annexures
---------------------------------------------

----------------------------------
219

Policy
220

conservation/Energy

Uttar
Pradesh
Uttar Pradesh Power Corporation Ltd.
Under the energy policy, 2009 energy audits are made

compulsory for all major industrial and large commercial
establishments and measures are initiated to improve the
efficiency of agricultural pump sets and all electrical installations.
The launching of communication campaign for consumer

guidance and education programme also become a part of
the policy.
Energy policy with objective to
renovate power plants, reduce
T&D loss and DSM. Solar Policy
2013.
Jharkhand
Chief Engineer cum Chief

Electrical Inspector, Energy
Department Government
of Jharkhand
---------------------------------------------
Implemented energy policy

2012 looking after various energy conservation schemes in
the state. The policy encourage
efficient usage of electricity &
facilitate energy conservation
measures including demand
side management. Optimization
of generation of existing plants
through renovation and modernization is a part of the policy.
Chhattisgarh
Chhattisgarh State Renew- The Govt. of Chhattisgarh released the solar energy policy Chhattisgarh Electricity Regulaable Energy Development on 20th November 2012 and will be operative till 31st tory Commissions office building
March 2017
in city has been acknowledged
as nations 1st Net Energy Plus
building, was constructed using
solar passive technology and has
been selected for net plus energy building award given by India
Tech Foundation-Mumbai.
Delhi
Energy Efficiency and Re- Energy Conservation Building Code (ECBC) in all governnewable EnergyManage- ment buildings and in all new building projects is made
ment Centre
mandatory. CFLs and electronic chokes are made mandatory in Govt. Building/Govt. aided institution/Boards,
Corporations. use of Solar Water Heaters in different
categories of buildings like Industries, hotels, hospitals,
canteens, corporate and residential building having area
of 500 sq. meters or above, Government buildings, etc.
is made mandatory. In the agricultural sector, use of ISI
marked Motor pump sets, Power capacitor and Foot/Reflex valves is made mandatory. There is also provision of
subsidy for promoting battery operated vehicles.
Energy Efficiency and Conservation Project - To undertake various activities to promote energy
efficiency and energy conservation with different stake holders,
State Government Departments
dealing with energy, industry,
planning, regulators, consumer
affairs, municipal body etc.
To take all measure to create awareness and disseminate
information for efficient use
of energy and its conservation
through electronic and print media and meet.
Meghalaya
Senior Electrical Inspector,

Govt. of Meghalaya Power
Department
Policy for promoting generation of Power through Nonconventional Energy Sources for Meghalaya
Buildings are constructed based

on solar passive design. Government promotes Aditya Solar
Shops in Major cities.
Assam
The Chief Electrical In- The Government of Assam has made the use of energy
spector-cum-Adviser, Gov- efficient lamps mandatory in all Govt. buildings/ Instituernment of Assam
tions/ Boards/ Corporations as well as directed all Govt.
departments and agencies to adopt design of new buildings basing upon energy conservation concept as per
ECBC norms
The sytate nodal agency dissemenates information about the

recent technological advancements and alkreadyt available technology in the field of
non-conventional & renewable
sources among domestic and
industrial user group, poplicy
makers, financial institutions,
consultants, and enterprenures.
Annexures

Policy

conservation/Energy

Manipur
Office of the Chief En- Policy on Renewable sources for promoting generation
gineer (Power), Govt. of of additional power through Non-Conventional Energy
Manipur
Sources under Manipur Renewable Energy Development
agency (MANIREDA)
MSDA creates general awareness

regarding Energy Conservation
measures and also to institutionalize the energy efficiency project implementation in industry
and domestic/residential sectors.
Advertise energy saving tips in a
local journal (ATHOUBA)
Tripura
Tripura Renewable Energy

Development Agency
Tripura state electricity corporation had already started promoting energy-efficient buildings where there would not be
required any electric light, fans
or other cooling gadgets and
to further promote use of CFL
bulbs to vigorously concentrate
on energy conservation
Nagaland
Chief Electrical Inspectorate, Department of

Power, Govt. of Nagalad
--------------------------------------------
EI conducts quiz programmes,

and awareness programmes relating to energy saving measures
Arunachal
pradesh
Arunachal Pradesh energy

Development Agency
---------------------------------------------
Energy efficienctchulhas has

been developed to cater the decrease in firewood availability.
Schemes has been proposed to
enhance energy efficiency.
Mizoram
Chief Engineer (Power),

Power and Electricity Department, Govt of Mizoram
---------------------------------------------
Reducing energy consumption

in Domestic Sector by way of
educating the users, promoting
ECBC and reduction of GHG
emission are in the agenda of
Electrical inspectorate.
Organise training of designated
Consumers by experts through
BEE.
Preparation of Annual year book
of energy conservation measure
at State Level.
Haryana
Haryana Renewable En- The Haryana Govt. has taken an in principal decision to
ergy Development Agency adopt the Energy Conservation Building Codes (ECBC)
(HAREDA)
launched by the Bureau of Energy Efficiency Govt. of India in July 2007.
Energy Conservation Building Code (ECBC) had been assigned to Tripura govt for generating awareness and popularizing energy efficient green building designs suiting the
climate condition of the region.
Scheme On Promotion Of Energy Aduit In Private, Govt.

Semi Govt. Industrial, Institutional, Commercial Buildings
Orissa
Annexures
Engineer in Chief Electricity-cum-PCEI Orissa
Odisha Energy Conservation Building Code has been adopted and Odisha State energy conservation fund has
been established. Scheme for extending financial support
to State PSUs, cooperatives and autonomous institutions
for implementation of energy efficiency in the buildings,
industries, municipality, and agriculture has been approved and notified.
Mandatory energy audit for all industries.
Government promotes energy

efficient building designs and
building constructions with optimum use of solar energy and
other forms of ambient energy in
energy management. State govt
had installed the CFL or T-5 tube
lights in govt buildings. Haryana
Renewable Energy Development Agency (HAREDA) awards
to industrial, commercial and
educational institutes who have
excelled in adopting the various
energy conservation measures in
their units to help save energy.
The amount vary from `25,000
to ` 2 lakh.
IFC, a member of the World
Bank Group, is supporting Indias Orissa state in upgrading
its street-lighting network under
a public-private partnership that
will help improve energy efficiency and provide access to
areas without streetlight
221

Policy
Goa
222

conservation/Energy

Energy
Development
Goa energy development According to the policy, all new government/local body Goa
agency
buildings with more than 200 m2 roof top area shall nec- Agency has prepared the draft
essarily install solar rooftop PV units.
Goa State Government Policy
towards Renewable, Solar Energy and Energy Conservation,
Goa 2014. The main objectives
of this policy are to (i) promote
generation and use of clean
and green power by harnessing renewable forms of energy;
(ii) promote private sector participation; (iii) productive use of
waste lands, abandoned mines,
etc.; (iv) promote co-generation
of power like waste heat recovery; (v) create employment opportunities etc.
Annexures
Annexure-X
Summary of Energy Efficiency initiatives by various countries
Energy
Policy The energy efficiency act of Canada allows making and
Objectives
enforcement of regulations concerning minimum energy
performance levels for energy using products as well as the
labelling of energy-using products and collection of data on
energy use.
Pricing
Mechanism
Regulatory
and control
Mechanisms
Before importing a product or before shipment from the

factory an energy efficiency report needs to be sent to
Natural Resource Canada (NR Can).
All energy related products must have energy efficiency
verification mark and EnergyGuide Label affixed on it as
prescribed by the regulations
If the imported products are identified to be without having
the pre-described standard, custom clearance is not be
granted
Canada
Fiscal
measures Rebates on purchasing energy efficient electrical appliances
and tax Incentives which includes washing machine, refirgerator, propane
dryers, LED lights, Heating Appliances etc.
Rebates are also applicable to residencial insulation and
air sealing system and drain water heat recovery (DWHR)
systems.
Promotional
and market
transformation
mechanisms
Market transformation efforts for motors began in Canada

in 1988 which included testing, databases of product
efficiency, high-efficiency specifications, educating motor
purchasers and financial incentives, which effectively
established many of these policies tools within end-use
equipmentprogrammes.
The three main building energy labelling programs available
in Canada - Natural Resources Canadas Energy Star Portfolio
Manager, ASHRAEs building Energy Quotient (bEQ) and
the Canada Green Building Councils Green Up program.
Annexures
223

Technology
development
Canada is a world leader in the production and use of

energy from renewable resources, which currently provides
about 16% of Canadas total primary energy supply.
Natural Resources Canada (NRC) Construction focuses
on advancing construction technology in the core areas
of building envelope and materials, fire safety, indoor
environment, intelligent building operations, urban
infrastructure, and building regulations.
Commercial
mechanism and
capacity building
Anyone who is a manufacturer or importing agency or

selling/ leasing regulated products should ensure that the
product meets the energy efficiency standard
Financing
------------------------------------------------------------------------
Energy Policy
Objectives
The law concerning the rational use of energy was passed in

1979 and covers all sectors in the country.
Country has targeted that all newly constructed public
building by the year 2020 to be Zero Energy Building.
Regulatory
and control
Mechanisms
Japan
224
The law concerning the rational use of energy was passed

in 1979.
All buildings with 300 sq.m. of floor space or more need
to report individual energy conservation measures to the
authority
Fiscal
measures In the industrial sector, Japan has implemented a tax system
and tax Incentives to promote investment in energy efficiency technology.
This system allows individuals and corporations to claim a
tax credit or a flexible depreciation for eligible equipment.
The tax credit is equivalent to 7% of relevant equipment
acquisition costs to be deducted from the corporate tax
amount and the special depreciation covers 30% of the
equipment acquisition cost in the initial year.
Promotional
and market
transformation
mechanisms
Standards have been established for many products including

automobiles, house hold appliances and lighting.
Technology
development
To promote the development of energy efficiency technology,

the five technological fields listed -Super combustion system
technologies, Technologies for energy utilization beyond
space-time restriction, Energy conserving information living
space creation technologies, Technologies that established
the advanced transport society, Future energy conserving
device technologies.
Country has targeted that the newly constructed public

buildings shall be Zero Energy Building by 2020
Annexures

Commercial
mechanism and
capacity building
For the industrial sector, energy conservation is to be effected

by reduction effort of minimum 1% per year and it should
be reported periodically as per regulatory measures.
Financing
Japan Bank for International Cooperation (JBIC) positively

supports Japanese firms as they import resources based on
long-term contracts or acquire their interests in developing
resources, by providing import loans and overseas investment
loans.
Energy Policy
Objectives
Under the Energy Company Obligation, energy suppliers

have a duty to reduce emissions.
The aim is for every home in Great Britain to have a smart
energy meter in 2019.
The Government has its intention for all new homes to be
zero carbon from 2016 and all new non domestic buildings
to be zero carbon from 2019.
In March 2011, the Government announced the details of
the Renewable Heat Incentive policy to revolutionise the
way heat is generated and used
Pricing
Mechanism
United Regulatory
Kingdom and control
Mechanisms
Feed-in Tariffs scheme was introduced in April 1st 2010

to encourage deployment of additional small scale low
carbon electricity generation by organizations, businesses,
communities and individuals.
The British government created DECC (Department of
Energy and Climate Change) to bring about transition to a
low carbon Britain.
The country has created the Energy Act 2011 to bring change
in the provision of energy efficient measures to homes.
Fiscal measures
There is support of around 15 million for households
and tax Incentives through the Renewable Heat Premium Payment scheme.
Annexures
Promotional
and market
transformation
mechanisms
Government is supporting market growth for ultra-low

emission vehicles (EV etc.) UK has committed to generate
15% of energy from renewable sources by 2020.
Technology
development
Government support the market growth of ultra-low

emission vehicles by providing 300 million as incentive to
consumers up to 5000 per car.
Roll out plan for smart meters expected to start in 2014 anf
aims to have smart meter in each home by 2019.
225

Commercial
mechanism and
capacity building
Energy Act 2010, energy companies are required to make

available at least 300 million per annum (around 345
million) by 2013-14 on social support to tackle fuel poverty
by lowering energy bills of the most vulnerable consumers.
The Feed-in Tariffs (FITs) scheme was introduced on 1st April
2010 to encourage deployment of additional small scale
(less than 5 MW) low-carbon electricity generation.
Financing
The Green Deal is a government-backed scheme to help

make cost-effective energy saving improvements. Instead
of paying for the full cost of the improvements up front,
payment is made over time through a charge added to the
electricity bill.
ECO provides funding from the big six energy suppliers to
support energy improvements for people on certain benefits,
for those in solid wall properties and for households in the
poorest parts of the country.
Energy Policy
Objectives
Development of renovation roadmap for existing buildings

which starts in 2020
Pricing
Mechanism
Investment protection through guaranteed feed-in tariffs

and connection requirement.
Regulatory
and control
Mechanisms
Inclusion of the climate neutral building standard, to be

met by new buildings by 2020, in the revised Energy Saving
Ordinance of 2012.
Germany is advocating ambitious standards at EU level and
a transparent labeling for cars, products and buildings.
Germany
The German government has elaborated a Renewable

Energy Sources Act for Heat to reduce the dependence on
imports, reduce the exploitation of fossil resources etc.
Fiscal
measures On 3rd December 2014, the federal cabinet is expected to
and tax Incentives pass the next National Action Plan on Energy Efficiency.
This measure is supposed to include more direct public
investment bonuses through the KfW development bank,
as well as tax rebates for private investors.
From 2013, companies in the energy intensive sectors must
have an environmental or energy management system in
place to benefit from the reduced electricity tax rates.
226
Annexures

Promotional
and market
transformation
mechanisms
Increasing the market incentive programme for the use of

renewable energies for heat generation in buildings.
Launching a new support scheme performance-enhancing
urban rehabilitation.
In 2009 the environment bonus for car scrapping provided
2,500 Euro to people who scrap a car thats at least nine
(9) years old and buy a new car instead before end of the
year 2009
Technology
development
In 2009, the EU-directive on Eco-design of Energy-using

products was revised and extended to all energy-related
products.
Commercial
mechanism and
capacity building
Ensuring better funding for the CO2 building rehabilitation

programme to support efficiency measures
Financing
The Federal Ministry for Economics and Technology together

with the KfW, promotional bank, offer a special fund for
energy efficiency in SMEs in order to promote energy
efficiency in small and medium enterprises
Energy Policy
Objectives
Reduce significantly the energy cost gap for consumers and

businesses by bringing prices and costs in line with European
levels.
Achieve and exceed the European targets established by
20-20-20 package.
Continue to improve the security of supply, especially in the
gas sector, and reduce dependency on imports.
Encourage sustainable economic growth by developing the
energy sector.
Italy
Regulatory
and control
Mechanisms
New buildings should have energy performance index

lower than a threshold for both winter and summer airconditioning.
A new white certificates mechanism is under approval with
new guidelines to be in force in 2014, the mechanism
introduces new energy savings targets for the years 20132016.
Annexures
227

Fiscal
measures The tax deduction of 55% of the amount payable by the
and tax Incentives taxpayer for interventions in energy efficiency for existing
buildings keeps on having excellent results.
In December 2008, 26 selected Sustainable Mobility
projects received a total of 180 million euro (`1,440crore),
generating a total investment of 450 million euro (` 3,600
crore).
Promotional
and market
transformation
mechanisms
Energy efficiency measures are promoted in industrial

sectors with incentives for new electrical motors at high
efficiency and inverters, lighting control systems and high
efficiency cogeneration
Technology
development
In January 2009, the Industrial Energy Efficiency stream

selected 30 projects mobilizing an investment of 500
million euro (` 4,000 crore) in research and development
targeting both efficiency and the use of renewable energy
technologies
Commercial
mechanism and
capacity building
Agenzianazionale per le nuovetecnologie, lenergia e lo

sviluppoeconomicosostenibile (ENEA) undertake initiatives
aimed at developing, enhancing and promoting research
and innovation, in keeping with Italys EU and international
commitments in terms of energy efficiency, environmental
protection and technological innovation.
TRAINER (www.iee-trainer.eu) aimed to improve energy
efficiency of the railways in at least 5 EU-countries: the
Netherlands, Slovenia, Slovakia, Italy, Greece. Training
programmes and facilities were developed and implemented
to initiate and optimise measures of improving energy
efficiency by railway operators.
Energy
Policy An objective has been set for reduction of CO2 emissions by
20% in 2020 and of a decrease of the average emissions of
Objectives
the car stock from 176 gCO2/km to 130 gCO2/km.
Two million of electric and hybrid cars are planned in
2020.
France
Regulatory
and control
Mechanisms
All new buildings with a building permit lodged after 1

January 2013 should have primary energy consumption
below a threshold of 50 kWh/m2/year.
Since January 2008, new buildings with a net floor area of
more than 1000 m must undergo a feasibility study of the
various energy supply solutions, and in particular the use of
renewable energies and the most efficient systems.
228
Annexures

Fiscal measures
Since 2005, private individuals have been eligible for a tax
and tax Incentives credit to purchase the most efficient materials or equipment
in the area of energy saving or of production of energy from
renewable sources under Sustainable Development Tax
Credit (CIDD).
Promotional
and market
transformation
mechanisms
The main measures for cars are the compulsory labelling

scheme and an ecological bonus since January 2008
Commercial
mechanism and
capacity building
Energy Information Centre (EIC) Set up by ADEME in 2001

as part of the national plan to improve energy efficiency. The
network of EICs has been developed with local partnerships
to offer the general public an information service on saving
energy, rational use of energy and renewable energies.
Financing
The Green loans mechanism, put in place in July 2010

with a budget of 500 million.
Since 2010, 2600 million of green loans was proposed
to industrial companies to allow them to be more
environmentally friendly in order to be more competitive
Energy Policy
Objectives
There is a federal energy reduction goal of 30% by fiscal

year 2015
Regulatory
and control
Mechanisms
Minimum standards of energy efficiency for major appliances

were established by the U.S. Congress in the federal Energy
Policy and Conservation Act (EPCA) of 1975.
Fiscal measures
Federal Tax Credits for Energy Efficiency applicable for
and tax Incentives Home Builders and Manufacturers,Tax Deductions for
Commercial Buildings, Tax Incentives for Hybrid, Electric
and Alternative Fuel Vehicles.
USA
Annexures
Promotional
and market
transformation
mechanisms
Any agency must incorporate energy-efficienctspcification

sinprocurement bids and evaluations and should purchase
only premium efficient eletric motors, Acs and refrigeration
equipment.
Technology
development
The Bioenergy KDF supports the development of a

sustainable bioenergy industry by providing access to a
variety of data sets, publications, and collaboration and
mapping tools that support bioenergy research, analysis,
and decision making.
Commercial
mechanism and
capacity building
Any agency must incorporate energy-efficient specifications

in procurement bids and evaluations, and should only
purchase premium efficient electric motors, air conditioning
and refrigeration equipment
229

Financing
The Energy Efficient Mortgage Loan program is one of many

FHA programs that insures mortgage loans. It is available
to anyone who meets the income requirements for FHAs
Section 203(b) and is able to make the monthly mortgage
payments.
Energy Policy
Objectives
The basic objectives of Chinas energy policies are:

giving priority to conservation, relying on domestic
resources, encouraging diverse development, protecting
the environment, promoting scientific and technological
innovation, deepening reform, expanding international
cooperation, and improving the peoples livelihood.
Regulatory
and control
Mechanisms
Appliance standards and labelling: Mandatory minimum

efficiency standards, Voluntary energy efficiency labels,
Mandatory energy information labels.
Fiscal measures
China disclosed new, multiyear subsidies and other
and tax Incentives inducements to get government officials and agencies to
buy energy-efficient vehicles in a boost for plug-in electric
and hybrid auto makers.
China is considering a plan to offer subsidies to encourage
wider use of energy-saving home appliances.
China
230
Promotional
and market
transformation
mechanisms
China Energy Efficiency Promotion Initiative (Abbr.

CEEPI) was initiated by MIIT (Ministry of Industry and
Information Technology) , WB (the World Bank) and GEF
(Global Environment Facility), which was a promotion
project for China industrial enterprises to develop the
energy management system and capacity building. The
project is composed by four component: policy research,
capacity building for engergy managers, implementation of
demonstration projectsa& publicity and promotion.
Technology
development
China has installed many super critical and ultra super critical
power plants which constitutes 28% of the total fleet
Commercial
mechanism and
capacity building
85 gigawatts (GW) of small, inefficient power plants were

shut down during the period of 2006-2011
Financing
Energy efficiency finance program in China, with funding

from the Global Environment Facility (GEF) and International
Finance Corporation (IFC), support financing of energy
efficiency projects by local Chinese commercial banks.
Annexures

Energy Policy
Objectives
The Australian Governments objective is to ensure that

Australians have reliable access to competitively priced
energy, the value of energy resources is optimised, and
environmental issues are well-managed.
Regulatory
and control
Mechanisms
The Australian government has put forward mandatory

Energy Rating Labels (ERL) and Minimum Energy Performance
Standards (MEPS)
Fiscal measures
Currently, more than 300 different energy efficiency
and tax Incentives incentive schemes exist in Australia.eg: Electric hot water
tariff incentive; Pool pumps, tariff and energy-efficient
pump incentives; Wood heater and fireplace replacement
subsidy etc.
Australia
Annexures
Promotional
and market
transformation
mechanisms
Australian Governments energy objectives includes a strong

emphasis on the urgency and importance of continued
energy market reform.
Technology
development
Establishment of a $500 million fund to leverage more than

$1 billion in private investment to develop and demonstrate
low-emission technologies.
Commercial
mechanism and
capacity building
All new proposals relating to nationally applied regulation

are subjected to a Regulation Impact Assessment (RIA) to
assess the costs and benefits of the regulatory proposal
for individuals, business and the economy, as well as to
consider alternative proposals to achieve comparable
energy savings.
Financing
The Clean Energy Finance Corporation (CEFC) welcomes

proposals from organisations seeking finance for investmentready renewable energy technology, low emissions technology
and energy efficiency projects. The CEFCs funding will be
invested in the areas of low emissions technology and energy
efficiency. This includes technologies, systems, services or
business models related to energy conservation or demand
management outcomes.
231
Annexure-XI
Sector Wise Energy Efficiency Investment Potential
232
Annexures
Abbreviation
ADB
Asian Development Bank
AEDA
Assam Energy Development Agency
AgDSM
Agriculture Demand Side Management
AMI
Advanced Metering Infrastructure
APDRP
Accelerated Power Development & Reform Programme
API
Active Pharmaceutical Ingredients
APIC
Asia Petrochemical Industry Conference
AT&C
Aggregate Technical and Commercial
A-USC
Advanced Ultra Super Critical
BAT
Best Available Technology
BC
Before Christ
BCM
Billion Cubic Meter
BEE
Bureau of Energy Efficiency, India
BLY
Bachat Lamp Yojana
BIS
Bureau of Indian Standards
BOF
Basic Oxygen Furnace
BREDA
Bihar Renewable Energy Development Agency
BRICS
Brazil, Russia, India, China and South Africa
CAGR
Copmpund Annual Growth Rate
CCHP
Combined Cooling, heating and Power
CDM
Clean Development Mechanism
CEA
Central Electricity Authority
CFL
Compact Fluorescent Lamp
CHP
Combined Heat and Power
CHPDH
Combined Heat and Power and District Heating
CII
Confederation of Indian Industries
CIL
Coal India Limited
CO2
Carbon Dioxide
CLFR
Compact Linear Fresnel Reflector
CRI
Colour Rendering Index
Appendix
233
234
CSO
Central Statistics Office
CSP
Concentrated Solar Power
DAP
Diammonium Phosphate
DCs
DG
Diesel Generator
DISCOMS
Distribution Companies
DIPP
Department of Industrial Policy and Promotion
DPR
Detailed Project Report
DRI
Direct Reduced Iron
DSI
Demand Side Integration
DSM
Demand Side Management
EAF
Electric Arc Furnace
EC
Energy Conservation
ECAT
Energy Conservation Action Plan Team
ECBC
Energy Conservation Building Code
ECW
Equipment Cooling Water
EE
Energy Efficiency
EEHP
Energy Efficient Home Package
EJ
Exa Joule (1 joule x 108)
EMC
Energy Management Center
EMR
Electro Magnetic Radiation
EnMS
Energy Management System
ERC
Electricity Regulatory Commissions
ERL
Energy Rating Labels
ESCO
Energy Service Company
ETC
Electronic Toll Collection, Evacuated Tube Collector
EU
European Union
FICCI
Federation of Indian Chambers of Commerce and Industry
FWD
Front Wheel Drive
FY
Financial Year
GBI
Generation Based Incentive
GCal
Giga Calories per Tonne
Appendix

GDP
Gross Domestic Product
GEDA
Gujarat Energy Development Agency
GEF
Global Environmental Facility
GHG
Green House Gas
GJ
Giga Joules (1 joule x 109)
GoI
Government of India
GVW
HAREDA
Haryana Renewable Energy Development Agency
HBI
Hot Briquette Iron
HDPE
High Density Poly Ethylene
HEMM
Heavy Earth Moving Machinery
HPSV
High Pressure Sodium Vapour
HSD
High Speed Diesel
HVAC
Heating Ventilation and Air Conditioning
HVDC
High Voltage Direct Current
HVDS
High Voltage Distribution System
ICCTAS
Indian Council Of Ceramic Tiles And Sanitaryware
ICPEEB
Indian Council For Promotion Of Energy Efficiency Business
IEA
International Energy Agency
IETD
Industrial Efficiency Technology Database
IGBC
Indian Green Building Council
IGCC
Integrated Gasification Combined Cycle
IIUS
Industrial Infrastructure Upgradation Scheme
INCCA
Indian Network on Climate Change Assessment
INR
Indian National Rupees (`)
IPH
Industrial Process Heat
IPMA
Indian Paper Manufacturers Association
IREDA
Indian Renewable Energy Development Agency
kCal
Kilo Calories
Ktoe
Kilo Tonne Oil Equivalent
kWh
Kilo Watt Hour
LDO
Light Diesel oil
Appendix
235
236
LDPE
Low Density Poly Ethylene
LED
Light Emitting Diode
LEED
Leadership in Energy Environmental Design
LES
Luminous Efficacy of a Source
LFR
Linear Fresnel Reflector
LHV
Lower Heating Value
LiBr-H2O
Lithium Bromide-Water
lm/W
Lumens per Watt
LSHS
Low Sulphur Heavy Stock
M&V
Measurement and Verification
MEDA
Maharashtra Energy Development Agency
MEG
Mono Ethylene Glycol
MEPS
Minimum Energy Performance Standards
MH
Metal Halide
MMSCMD
Million Metric Standard Cubic Meter per Day
MNRE
Ministry of New and Renewable Energy
MoMSME
Ministry of Micro, Small and Medium Enterprises
MoP
Ministry of Power
MSDA
Manipur State Designated Agency
MSME
Micro, Small and Medium Enterprises
MT
Million Tonne
MTEE
Market Transformation for Energy Efficiency
Mtoe
Million Tonnes of Oil Equivalent
MTPA
Million Tonnes per Annum
MU
Million Units
MUSH
Municipalities, Universities, Schools and Hospitals
MW
Mega Watt
MWe
Mega Watt Electric
NAPCC
National Action Plan on Climate Change
NBMMP
National Biogas and Manure Management Programme
NMEEE
National Mission for Enhanced Energy Efficiency
NPC
National Productivity Council
Appendix

NPV
Net Present Values
OBU
On Board Unit
OECBC
Odisha Energy Conservation Building Code
OECD
Organization for Economic Co-operation and Development
OLED
Organic Light Emitting Diodes
OMS
Outage Management System
OSECF
Odisha State Energy Conservation Fund
PAN
Peroxyacyl Nitrate
PAT
Perform Achieve and Trade
PBR
Poly Butadiene Rubber
PC
Precalciner
PCRA
Petroleum Conservation Research Association
PEC
Per-capita Energy Consumption
PEDA
Punjab Energy Development Agency
PET
Poly Ethylene Terephthalate
PFY
Polyester Filament Yarn
PPP
Public Private Partnership
PSF
Polyester Staple Fiber
PTC
Parabolic Trough Collector
PV
Photo Voltaic
PVC
Poly Vinyl Chloride
PwC
Price Water Coopers
R&D
Research and Development
RBI
Reserve Bank of India
RRECL
Rajasthan Renewable Energy Corporation Limited
RSPCL
Rajasthan State Power Corporation Ltd
RTFO
Renewable Transport Fuel Obligation
SBR
Styrene Butadiene Rubber
SC
Super Critical
SDA
State Designated Agencies
SEC
Specific Energy Consumption
SEB
State Electricity Board
Appendix
237
238
SHPC
Small Hydro Power Schemes
SIDBI
Small Industries Development Bank of India
SLSC
State Level Steering Committee
SME
SP
Suspension Preheater
SREDA
Sikkim Renewable Energy Development Agency
SUV
Sports Utility Vehicle
T&D
Transmission and Distribution
TEDA
Tamil Nadu Energy Development Agency
TERI
The Energy Resource Institute
TIC
Temperature indication Controller
TISCO
Tata Iron and Steel Company Limited
TPD
Tonnes Per Day
TREDA
Tripura Renewable Energy Development Agency
Toe
Tonnes of Oil Equivalent
UK
United Kingdom
ULB
Urban Local Bodies
UN
United Nations
UNFCC
United Nations Framework Convention on Climate Change
UREDA
Uttarakhand Renewable Energy Development Agency
USEPA
US Environmental Protection Agency
USA
United States of America
USAID
United States Agency for International Development
USC
Ultra Super Critical
USD
United States Dollar
USGBC
United States Green Building Council
VAC
Variable Absorption Chiller
VFD
Variable Frequency Drive
VSD
Variable Speed Drive
VSK
Vertical Shaft Kiln
WBREDA
West Bengal Renewable Energy Development Agency
WSA
World Steel Association
ZEDA
Zoram Energy Development Agency

Appendix
Conversion Table
Appendix
Factor
Name
Symbol
1024
yotta
1021
zetta
1018
exa
1015
peta
1012
Tera/Trillion
109
Giga/Billion
G/b
106
Mega/Million
103
kilo
102
hecto
101
deka
Da
239
Energy Units
240
Symbol
Unit
b/d
Barrels per day
Boe
Barrels of oil equivalent
EJ
exa joule
GJ
giga joule
GW
giga watt
GWh
giga watt Hour
ktoe
kilo tonnes of oil equivalent
kWh
kilowatt hour
MW
megawatt
MWh
megawatt hour
MJ
mega joule
Mtoe
million tonne of oil equivalent
Mtce
million tonne of coal equivalent
PJ
peta joule
TJ
trillion joule/tera joule
Tce
tonnes of coal equivalent
Toe
tonnes of oil equivalent
TWh
tera watt hour
Appendix

POWERGRID Efficiency Book

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

POWERGRID Efficiency Book

Transféré par

Droits d'auteur :

Formats disponibles

Negawatt - Makes a Watt

ENERGY EFFICIENCY OVERVIEW .................................................................................................1

ENERGY EFFICIENCY ACTIVITIES ..................................................................................................... 2

ENERGY EFFICIENCY WHY WE NEED IT? ...................................................................................... 3

ENERGY EFFICIENCY BARRIERS TO OVERCOME .......................................................................... 5

INDIAN ENERGY SCENARIO & EFFICIENCY OPPORTUNITIES ...................................................9

PRESENT ENERGY SCENARIO .......................................................................................................... 10

PRIMARY ENERGY RESOURCES ....................................................................................................... 11

PER CAPITA ENERGY CONSUMPTION AND ENERGY INTENSITY.................................................... 12

PROJECTED DEMAND SCENARIO ................................................................................................... 13

FUTURE ELECTRICITY SCENARIO AND NECESSITY OF RESOURCE MIX & ..................................... 13

ENERGY EFFICIENCY OPPORTUNITY IN PAT INDUSTRIES .............................................................. 14

THERMAL POWER PLANTS ..........................................................................................................17

PERFORMANCE OF INDIAN COAL POWER PLANTS ....................................................................... 18

INDIAN ECONOMY AND THERMAL POWER PLANTS .................................................................... 19

ENERGY EFFICIENT THERMAL POWER PLANTS .............................................................................. 19

SAVING POTENTIAL AND INVESTMENT .......................................................................................... 23

CASE STUDY ON THERMAL POWER PLANT ................................................................................... 25

STEEL & IRON SECTOR ................................................................................................................27

INDIAN ECONOMY AND STEEL INDUSTRY .................................................................................... 28

WORLD STEEL PRODUCTION DATA ............................................................................................... 29

ENERGY CONSUMPTION ................................................................................................................ 30

SAVING POTENTIAL AND INVESTMENT .......................................................................................... 30

CASE STUDY ON ENERGY EFFICIENCY ............................................................................................ 31

INDIAN ECONOMY AND CEMENT INDUSTRY................................................................................ 35

Negawatt - Makes a Watt

GROWTH TREND OF CEMENT PRODUCTION IN RECENT YEARS ................................................. 35

ENERGY CONSUMPTION BY CEMENT PLANTS............................................................................... 36

MAJOR ENERGY CONSUMING AREAS IN CEMENT INDUSTRY ....................................................... 36

SAVING POTENTIAL AND INVESTMENT .......................................................................................... 39

CHEMICAL INDUSTRY .................................................................................................................43

INDIAN ECONOMY AND CHEMICAL INDUSTRY ............................................................................ 43

CHLOR-ALKALI INDUSTRY .............................................................................................................. 44

FERTILIZER INDUSTRY ..................................................................................................................... 47

PETROCHEMICAL INDUSTRY .......................................................................................................... 48

ALUMINIUM INDUSTRY ..............................................................................................................51

ENERGY CONSUMPTION IN ALUMINIUM SECTOR ........................................................................ 53

SAVING POTENTIAL AND INVESTMENT .......................................................................................... 54

ENERGY EFFICIENCY MEASURES IN ALUMINIUM INDUSTRY ......................................................... 54

PULP AND PAPER INDUSTRY ......................................................................................................57

INDIAN PAPER INDUSTRY ............................................................................................................... 59

PAPER RECYCLING IN INDIA ........................................................................................................... 60

ENERGY CONSUMPTION ................................................................................................................ 62

SAVING POTENTIAL AND INVESTMENT .......................................................................................... 63

ENERGY EFFICIENT INVESTMENT .................................................................................................... 64

TEXTILE INDUSTRY ......................................................................................................................67

INDIAN ECONOMY AND TEXTILE INDUSTRY ................................................................................. 68

ENERGY CONSUMPTION IN TEXTILE INDUSTRY ............................................................................ 68

ENERGY EFFICIENCY IMPROVEMENTS ............................................................................................ 69

ENERGY SAVING POTENTIAL AND INVESTMENT............................................................................ 70

ENERGY EFFICIENT INVESTMENT .................................................................................................... 70

SOLAR ENERGY POTENTIAL ASSESSMENT IN TEXTILE INDUSTRY .................................................. 73

10. COMMERCIAL AND RESIDENTIAL BUILDINGS ..........................................................................75

RESIDENTIAL SECTOR ...................................................................................................................... 76

Negawatt - Makes a Watt

ENERGY SAVING OPPORTUNITIES .................................................................................................. 81

INVESTMENT POTENTIAL IN RESIDENTIAL AND COMMERCIAL BUILDINGS ................................. 83

PROJECTED FUTURE TREND OF ELECTRICITY CONSUMPTION IN BUILDING .............................. 83

BENEFITS OF INVESTMENT IN BUILDING ENERGY EFFICIENCY ..................................................... 83

ENERGY EFFICIENCY MEASURES FOR BUILDINGS .......................................................................... 84

11. MUNICIPAL STREET LIGHTING ...................................................................................................87

INDIAN SCENARIO OF STREET LIGHTING ...................................................................................... 87

BIS STANDARDS FOR STREET LIGHTING ........................................................................................ 87

ENERGY INEFFICIENCY CAUSES AND IMPROVEMENTS .................................................................. 88