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Real-time Energy
Optimization in the
Cement Industry |
Opportunities Vs Saving
Potential
Vikram M Avina
Author
Senior Research Analyst, Energy and Sustainability
Introduction
India Stands second in terms of cement production worldwide, with nearly 390
million tonnes (MT) of cement production capacity accounting for 6.7% of the worlds
cement output. It is estimated to reach 550 MT by FY 2020. The industry has been
growing strong lately (since 2013), before which it came to a halt in 2013. This
standstill in 2013-14 was in response to the sharp downturn of the economy and
rising production costs (especially energy cost; which makes up to 46% of the total
production cost), cement sales volume growth halved from the levels seen over the
past decade, while the prices nearly stagnated.
400
398
SLUMP 359
300
324
100
0
FY12 FY13 FY14 FY15 FY16 E FY17 E
This paper attempts to understand and evaluate energy as a major cost contributor
to the total cost of cement production and suggest measures to optimize energy cost
coupled with an Impact assessment of annual potential savings. It takes a look at the
cost saving as well as the load curve optimization techniques to deal with the rising
production cost. It also borrows some lessons from the global cement industry that
the Indian cement producers can adopt to further improve their operating practices.
Energy flow for cement manufacturing clearly indicates the energy intensiveness of
the process. Motors for crushers and grinding consume the maximum electrical
energy while Kilns consume the thermal energy.
Energy Flow | Cement
Manufacturing
Diesel for Loaders,
dozers and Limestone Mining
compressors
Mills accounts for more than 60% of the total electrical power consumed during the
manufacturing process of cement closely followed by kilns and crushers. So to apply
cost reduction approach these are to be chosen as the first point of action.
The Road Ahead | Time of Use Tariff | Way Forward for Load Shifting
Time of Use Tariff (TOU) structure is based on the load profile/ consumption pattern
of the consumers. The tariff varies (low/high) in tandem with demand. Industrial
consumers are increasing moving towards load shifting to encompass TOU tariff
structure, in order to enjoy its monetary benefits. Load profile of different segments
of consumers (urban/Rural/Industrial) has varying demand at different point of time
in a day. Load shifting implies of shifting heavy (adjustable) loads from peak to
standard/off peak periods to attain savings in terms of electricity bills.
With increasing energy costs for manufacturing of cement, various manufactures are
moving steadily to optimize their load curves; bringing down their overall demand
through increased efficiency. Another way of optimizing the load curve would be to
shift heavy (adjustable) loads from peak to standard/off peak periods (usage of TOU
Tariffs) to attain savings in their electricity bills.
Winters Summers
Midnight Midnight
11 1 11 1
10 2 10 2
3 3
9 9
4 4
8 8
7 5 7 5
3 9 3 9
2 10 2 10
1 11 1 11
Noon Noon
Peak Standard Off Peak
The period (10 A.M 4 P.M) when the demand is comparatively lower than the rest
of the day, the tariff is at standard indicating the relation between the two.
comes from these. On implementation this would yield a great savings to the total
electrical consumption of the manufacturing unit.
There are multiple factors that influence the operation of plants (motors) and are
used to calculate the number of hours available for load shifting. These include plant
layout, flow rates, silo capacity, planned maintenance, motor operating capacity,
percentage use of fly ash, equipment reliability (incident hours), regulations of DSM
load-shifting, and weekend operating hours. The flow rate and reliability are variable
factors and can change over time
Other Best Practices | A Tilt towards Energy Efficiency
Today, although, India is the second largest and also one of the most cost efficient
cement producer in the world, there is still scope for improvement in its operating
practices particularly from the energy stand point. The following table summarizes
the best practices currently employed widely by the Global cement industry and the
corresponding level on implementation of these in the Indian cement industry. It
highlights the areas where there is scope for improvement for the Indian cement
industry
Implementation Level by Cement
Companies in India
Cost Remaining
Global Industry best practices Top 3 Ranked 4-7
Factor (Constitutes
(Constitutes 35% (Constitutes 25%
40% of Total
of Total Capacity) of Total Capacity)
Capacity)
electricity production
Conclusion
2. Energy Efficiency
The Indian cement industry is poised for recovery and growth, going by the
infrastructure plan outlined by the 12th Five year plan. However, it may be few
more quarters before the uptrend arrives. Until then, the cement producers
should take this slowdown period as an opportunity to streamline operating
practices, modernize their production to enhance their energy efficiency
measures so as to cut down their overall cost.
Metadata
Industry to be impacted
Food, Beverage & Metal, Mining &
Pharmaceutical Chemicals
Tobacco Minerals
Domain to be impacted
Energy and
Oil & Gas
Sustainability
Category to be impacted
Natural Gas Liquid Fuels Electricity Solid Fuels
Focus Area
Sourcing Opportunity Supplier Intelligence Technology Substitute Opportunity
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