P.

KUMAR
MECHANICAL ENGINEER

Energy Conservation
The strategy developed to make power
available to all by 2012 includes promotion
of energy efficiency and its conservation in
the country, which is found to be the least
cost option to augment the gap between
demand and supply. Nearly 25,000 MW of
capacity creation through energy efficiency
in the electricity sector alone has been
estimated in India. Energy conservation
potential for the economy as a whole has
been assessed as 23% with maximum
potential in industrial and agricultural
sectors.

THE FOUR STEPS

of Effective Energy Management

How effectively are we

managing our energy
costs today?
Its time for a candid
review.

Are we selecting our

activities rationally, or by
whim?
Are our economic criteria
realistic, or wishful thinking?

Are we paying enough

attention to risk?
Are we keeping our
activities profitable?

Lets see

ENERGY MANAGEMENT
MEANS LOWERING COST
BY:
ELIMINATING UNNECESSARY ENERGY
USE
IMPROVING THE EFFICIENCY OF NEEDED
ENERGY USE
BUYING ENERGY AT LOWER NET PRICES
ADJUSTING OPERATIONS TO ALLOW
PURCHASING ENERGY AT LOWER PRICES
8

THE FOUR STEPS

(1) Identify ALL your opportunities.
(2) Prioritize your actions
rationally.
(3) Accomplish your activities
successfully.
(4) Maintain your activities.

Note that,
the steps of effective
energy management are
the SAME as for the
management of all
productive functions.

STEP 1
Identify ALL Your Opportunities

Before you take ANY action,

find ALL your opportunities.
The big difference of energy
management is that the
number of options to
consider is much larger
than for other important
functions.

11

STEP 1
Identify ALL Your Opportunities
The biggest hazard to energy
management is the itch to do
things before knowing all the
options.
Finding your best cost saving
opportunities is like an Easter
egg hunt. You dont know which
eggs have the biggest prizes
until you find them all.
12

It is your responsibility as
an energy manager to avoid
spending your
organizations money until
you are certain where it can
be spent most effectively.

A Competent Energy
Manager:
Does not wait passively for
proposals.
Aggressively finds every opportunity
within the facility for lowering
energy cost.
Relentlessly educates himself about
every method of lowering energy
cost that could apply to his facility.
14

STEP 1
Identify ALL Your Opportunities
Unlike most other business
activities, you need a formal
process, usually called an
energy audit, to find all your
opportunities.
A good energy audit takes
time and costs money, but not
much of either, compared to
your overall program.

15

STEP 1
Identify ALL Your Opportunities

Even today, competent energy

audits are rare.
This is the greatest deficiency
of present energy management,
resulting in continued high
energy costs, waste of money
on ineffective action, and
inadequate respect for energy
managers.
16

The energy audit is the

foundation on which your
entire energy management
program rests.
A deficient energy audit
WILL cause a deficient
energy management
program.

STEP 1
Identify ALL Your Opportunities

The energy auditor requires

scientific and engineering
education, broad practical
experience, and solid
judgement.
The energy auditor needs a
thorough understanding of ALL
opportunities, not just a few.
18

Vendors cant do energy

audits!
The energy auditor should
have NO CONFLICTING
INTERESTS.

Umm,
Who did YOUR energy audit?

STEP 2
Prioritize Your Activities Rationally
The sequence of your activities
is a major factor in the economic
benefit of your energy
management program.
Consider all the criteria that
matter, not just the economic
criteria.
Calculate with realistic numbers.

21

STEP 2
Prioritize Your Activities Rationally

Limit consideration to
measures of proven
reliability.
Consider the ability of your
staff to accomplish and
maintain each measure.
22

The best cost saving measures

usually are boring, i.e.: ordinary
and inexpensive. The staff
understand them easily.
The worst measures usually are
ego gratifying, i.e.: innovative,
complex, and expensive. The
fact that you dont really
understand them is part of the
thrill.

STEP 2
Prioritize Your Activities Rationally
Cost, by itself, is almost never
a significant selection factor.
Because, IF the measure works
as expected, it provides a
higher rate of return than most
other investments.
So, you can borrow the money,
if necessary.

24

The largest cost of energy

conservation is FAILURE.
If an activity does not work,
it will not pay back.

Therefore,
the most important
fiduciary responsibility of
the energy manager is to
ELIMINATE FAILURE.

STEP 3
Accomplish Your Activities Properly

Each cost saving activity is

an independent project that
requires its own knowledge,
equipment, and people.
The key to success is doing
your homework before
initiating each activity.
27

STEP 4
Maintain Your Activities Endlessly
Almost nothing continues to
operate successfully by itself.
Each energy management activity
requires continuing support.
Integrate the maintenance of
each activity seamlessly into your
overall operations.
28

So,
How does YOUR energy
management program
compare to the best
program that is possible?

Keep tuning your

program. There is always
room for improvement.
Energy management
NEVER ENDS.

And finally,
Your program will be a
success when the top
managers of your
organization understand that
energy management
produces the highest profits
in the organization.

THE ENERGY
CONSERVATION
ACT
Considering the vast potential of energy savings and
benefits of energy efficiency, the Government of India
enacted the Energy Conservation Act, 2001 (52 of 2001).
The Act provides for the legal framework, institutional
arrangement and a regulatory mechanism at the Central
and State level to embark upon energy efficiency drive in
the country. Five major provisions of EC Act relate to
Designated Consumers, Standard and Labeling of
Appliances, Energy Conservation Building Codes, Creation
of Institutional Set up (BEE) and Establishment of Energy
Conservation Fund.
The Energy Conservation Act became effective from 1st
March, 2002 and Bureau of Energy Efficiency (BEE)
operationalized from 1st March, 2002. Energy efficiency
institutional practices and programs in India are now
mainly being guided through various voluntary and
mandatory provisions of the Energy Conservation Act.

The Energy Conservation

(Amendment) Act, 2010- Main
Amendments
The Central Government may issue the energy
savings certificate to the designated consumer
whose energy consumption is less than the
prescribed norms and standards in accordance with
the procedure as may be prescribed.
The
designated
consumer
whose
energy
consumption is more than the prescribed norms and
standards shall be entitled to purchase the energy
savings certificate to comply with the prescribed
norms and standards.
The Central Government may, in consultation with
the Bureau, prescribe the value of per metric ton of
oil equivalent of energy consumed.
Commercial buildings which are having a connected
load of 100 kW or contract demand of 120 kVA and
above come under the purview of ECBC under EC Act.

Energy Efficiency
Measures

1. STANDARDS AND LABELLING

PROGRAMME
2. DEMAND SIDE MANAGEMENT
3. Energy Conservation Building
Code (ECBC)
4. Bachat Lamp Yojana (BLY)
5. Strengthening Institutional
Capacity of State Designated
Agencies (SDAs)

ISO 50001 How does it

work
?
ISO 50001 is based on the ISO management system

model familiar to more than a million organizations

worldwide who implement standards such as ISO
9001
(quality
management),
ISO
14001
(environmental management), ISO 22000 (food
safety), ISO/IEC 27001 (information security).
In particular, ISO 50001 follows the Plan-Do-CheckAct process for continual improvement of the energy
management system.
These characteristics enable organizations to integrate
energy management now with their overall efforts to
improve quality, environmental management and
other challenges addressed by their management
systems.

ISO 50001 How does it work ?

ISO 50001 provides a framework of
requirements enabling organizations to :
Develop a policy for more efficient use of
energy
Fix targets and objectives to meet the
policy
Use data to better understand and make
decisions concerning energy
use and consumption
Measure the results
Review the effectiveness of the policy
Continually improve energy management.

PDCA

This International Standard is based on the Plan-Do-Check-Act

continual improvement framework and incorporates energy
management into everyday organizational practices.

Plan : conduct the energy review and establish the

baseline, energy performance
indicators (EnPIs), objectives, targets and action plans
necessary to deliver results in accordance with opportunities
to improve energy performance and the organizations energy
policy.
Do : implement the energy management action plans.
Check : monitor and measure processes and the key
characteristics of its
operations that determine energy performance against the
energy policy and objectives and report the results.
Act : take actions to continually improve energy
performance and the EnMS.

 The industrial units and other establishments, which

have participated in this year award scheme of the
Ministry of Power, have been collectively able to
save 616 MW of equivalent avoided capacity.
The total annual energy savings of worth Rs. 2,886
crores is achieved by all participating units of
National Energy Conservation Award Scheme- 2012.
In an initiative towards industrial energy efficiency,
he informed that Government of India has launched
an innovative market based mechanism called
Perform, Achieve and Trade (PAT) under National
Mission on Enhanced Energy Efficiency (NMEEE).
This mandatory scheme is expected to save about
6.6 million tonne of oil equivalent in 2014-15 by 8
energy intensive industrial sectors.

NATIONAL ENERGY CONSERVATION

DAY
The National Energy Conservation day is celebrated
every year on the 14th December. This day goes a long
way in spreading the message of energy conservation in the
society. On this day, Ministry of Power, with the objective of
promoting energy efficiency and conservation, presents the
Energy Conservation Awards to industries, buildings, zonal
railways, state designated agencies, aviation, manufacturers
of BEE star-labeled appliances and municipalities and raise
awareness that energy conservation plays a big role in
Indias response to reducing global warming. The painting
competition is held every year at the School, State and
National levels under the National Campaign on Energy
Conservation undertaken by the Ministry of Power and
Bureau of Energy Efficiency.

Views President of India

Commenting
on
the
importance
of
energy
efficiency, Shri Pranab Mukherjee said, It is
worthwhile to note that
policies to promote energy efficiency, along with
high energy prices and structural changes in the
Indian
economy towards the services sector have resulted
in a sharp decline in energy intensity of the Indian
economy. The direct contribution of policies to
reduce energy use during the five years of the
Eleventh Five
Year Plan period has yielded 10,836 MW of avoided
generation capacity.

GOOD NEWS
The participating units of 2012 have collectively invested Rs. 1,948 crore in
energy conservation measures, and achieved a monetary savings of Rs.
2,886 crore, implying a payback period of 8 months only, once again
proving the fact that energy conservation is a least cost option. The
participating units have also saved electrical energy of 4,177 Million kWh
which is equivalent to the energy generated from a 616 MW thermal power
station at a plant load factor (PLF) of 0.775. In other words, these
participating units have avoided the installation of power generating
capacity equivalent to 616 MW thermal power stations in 2011-12, which
would otherwise have been required to meet the power demand of these
units.
During the last 14 years of the Award Scheme (1999-2012), the
participating units have achieved 3,581 MW of avoided generation
capacity and saved Rs. 18,675 crores. The investment made on energy
efficiency projects were recovered within 18 months only. In energy terms,
22,133 Million kWh of electrical power, 33.65 lakh kilolitre of oil, 149.53
lakh metric tonne of coal and 22.8 billion cubic metre of gas was saved
through energy conservation measures of participating units.

Indian Initiative in EM
NTPC Energy Technology Research Alliance
(NETRA) housed in NTPCs
first Energy
Conservation Building Code (ECBC) compliant
building was inaugurated by Union Minister of
Power Shri Sushilkumar Shinde. A one MW solar
power plant shall also be set up in NETRA
building soon.
Speaking on the occasion Shri R.S.Sharma, CMD
NTPC informed that the NETRA building is the first
NTPC building engineered as per requirements of
ECBC 2007. He said that in all upcoming projects
of NTPC administrative and service buildings shall
be designed as energy efficient green buildings.

Reference :
Energy Efficiency Initiatives in India
Sanjay Seth
Energy Economist
Bureau of Energy Efficiency
Ministry of Power
Government of India

International Cooperation in
India
India's annual per capita energy consumption of 0.65 tonnes of oilequivalent, and electricity consumption of 660 kWh are less than one seventh of that
in developed countries. This has a considerable impact on development, since there
is a strong linear relation between the Human Development Index, poverty and
electricity consumption. Access to sustainable energy in rural areas can therefore
contribute to poverty reduction. However, more than 280 million Indians, most of
whom live in rural areas, have no access to electricity. The Indo-German Energy
Programme, implemented jointly by GIZ and KfW Entwcklungsbank in cooperation
with their Indian partners, addresses this deficit by supporting energy-efficiency and
renewable energy generation in rural areas.
The main focus of the programme is its support for the implementation of the
Energy Conservation Act, which aims to promote energy efficiency in the country. The
Act involves positive interventions in many different areas, such as energy-intensive
industries, the manufacture of household appliances and industrial equipment,
residential households, and consulting enterprises and power stations.
In 2010 the programme was expanded to include a renewable energy
component, which is collaboration between GIZ and the Indian Ministry of New and
Renewable Energy (MNRE) to promote renewable energy in rural areas. Rural India
holds great, but largely untapped potential for renewable energy generation.

Indo-German Energy Programme

(IGEN)
Commissioned by: German Federal Ministry for
Economic Cooperation and Development (BMZ)
Country: India
Lead executing agency: Bureau of Energy
Efficiency (BEE), Central Electricity Authority
(CEA), Ministry of Power (MoP), Ministry of New
and Renewable Energy (MNRE), Government of India
Objective: The use of energy efficiency measures and
renewable energy sources is increasing, and this is
leading to the
more sustainable management of energy and
contributing to climate protection.

Approach

Labelling of household appliances and energy-intensive

industrial equipment with respect to energy efficiency
Certification of energy managers and energy auditors
Setting norms and standards for energy intensive industries
Transferring and promoting cutting-edge technology to reduce
energy consumption
Promoting public-private partnerships to raise awareness of the
need to save energy
Operating one of the largest web portals on this subject in India
Providing technical advisory services for the implementation of
rural electrification schemes
Developing appliances for rural applications, based on
renewable energy
Initiating a policy dialogue with MNRE and its state nodal
agencies to promote renewable energy in rural areas
Developing the capacities of, and providing support to public and
private sector institutions for implementing internationally
accepted Clean Development Mechanism (CDM) activities

Results of IGEN
The private sector now invests over EUR 400 million annually to
implement energy efficiency measures; to date, annual energy
savings worth about EUR 300 million have been reported as a
result of these investments.
About 8,000 professionals have completed the eight examinations
to become certified as energy managers and auditors.
28 state designated agencies have been formed, as well as seven
from the Union Territories, which now receive support for the
implementation of the Energy Conservation Act.
Regulations on energy efficiency labelling on various household
appliances and energy-intensive equipment are at an advanced
stage of implementation.
Over 850 CDM projects have been registered in India, including a
programme for the introduction of energy saving lamps in
households.
The world's first baseline for calculation of the CO2 emission-factor
for the Indian power grid has been prepared and institutionalised
Mapping and performance verification has been carried out for 85
Indian thermal power plants in the public sector, producing an

Road Map for Success

If its not energy efficient

its not on a sustainable path.