Girish Sethi TERI, New Delhiniti.gov.in/writereaddata/files/Girish Sethi.pdf · Pumps Blowers Co-generation Natural gas Biomass ... DCs under industry sector account for around 50%

Industrial Energy Efficiency

Girish Sethi TERI, New Delhi

Workshop on SDG7: Affordable and Clean Energy

Organized by

NITI Aayog, New Delhi

23 February 2017

India’s energy demand – Present and future trends

Primary energy could increase ~3-4 times of 2006/07 levels by 2031

Coal followed by oil likely to retain the dominant share

Final energy demand could rise by 2.7 times in 20 years from ~550 mtoe (2011) to 1460 mtoe (2031)

Industry continues to remain the major energy consumer (40-48%), while share of transport sector could rise rapidly from 16-25% (2011-2031)

Final Energy Demand

Source: TERI’s MARKAL Model Results

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0

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400

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1400

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2011/12 2016/17 2021/22 2026/27 2031/32

Mto

e

Agriculture

Commercial

Residential

Transport

Industry

Energy efficiency will need to be a be a key focus in all sectors

Indian industry sector - background

Industry sector has been a major driver of growth

Accounts for about 45% of total commercial energy consumption

Consists of large industries like fertilizers, iron & steel, cement etc and a diversified MSME sector

Many large industries have adopted latest state of the art technologies available globally (examples: cement, fertilizers etc ; commercial tie-ups, joint ventures, presence of MNCs etc)

MSME sector important from socio-economic perspective (employment generation, base for many large industries, engine for economic growth in peri-urban and rural areas)

Rising investments in physical infrastructure – transportation, buildings, ports etc. leading to increased economic activity in the manufacturing sector

10-25% energy conservation potential in various systems depending upon various factors

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Adoption of energy-efficient options

Process specific technologies

Cross-cutting options

Fuel switch options

Recycling and use of secondary materials

Iron and Steel Cement Aluminum Fertilizer Small and medium scale

industries

Motors Transformers Lighting Compressors Air conditioning Pumps Blowers Co-generation

Natural gas Biomass Solar Refuse derived fuel

Adoption of Energy Efficient Technologies in industries – General Approach

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Perform Achieve and Trade – an innovative policy instrument

Specific Energy Consumption (SEC) targets mandated for 478 units in 8 energy intensive sectors (334 industries & 144 TPPs)

Energy Savings Certificates issued for excess savings; can be banked, or traded and used for compliance by other units; Financial penalties for non compliance

Widening of PAT: Inclusion of more units from new sectors

New sectors: Refinery, Railways and Electricity DISCOMS

About 143 new DCs (only 49 new industries added)

Likely to be a rolling cycle in future

PAT cycle No. of units Sectors covered Energy reduction

Cycle I (2012-13 to 2014-15) 478 8 Target: 6.68 MToE

Achieved: 8.67 MToE

Cycle II (2016-17 to 2018-19) 621 11 Target: 8. 88 MToE

Key industry sectors in terms of energy consumption under PAT scheme: Steel, cement and fertilizers

DCs under industry sector account for around 50% of total industrial energy consumption

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83 Years

11 Years

3 Years

Capacity Addition 3rd100 mt

Capacity Addition 2nd100 mt

Capacity Addition

1st100 mt

45

49 54

54

58 62

70 7

6 83 88

10

0

10

0

10

7 11

6 12

4 13

4 14

8 16

21

74

18

8 21

72

28

24

7

24

8 25

6

27

0

62 65 67 71 77 8

4 96 1

06

11

1

11

7

12

0 13

3 14

6 15

0

15

7

16

5

17

1 17

92

09

23

3

29

4 32

3 33

6

35

0

36

0

38

0

0

50

100

150

200

250

300

350

400

19

14

90

-91

92

-93

94

-95

96

-97

98

-99

00

-01

02

--03

04

--05

06

--07

08

--09

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--11

12

--13

14

-15

MT

Production Capacity

Source: Data analysis by NCCBM, 2014

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Case study 1. Energy intensive large industries

Example: Indian Cement industry

Cement industry: Energy consumption comparison

SEC includes both thermal and electrical Source: Data analysis by NCBM, 2014

Country Overall SEC

(kcal/kg cement)

India 788

Japan 733

Germany 872

China 932

UK 946

USA 1015

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Key success factors - Indian Cement Sector

Industry moved early from a controlled regime to open market competition

Strong push by international technology suppliers from USA, Europe & Japan to market state of the art global technologies

Acceptance of the new technologies by large domestic private companies - industry primarily in private sector

Technology acquisition route: Commercial sale, technology tie-ups, etc

Increasing presence of major global cement companies

Steady growth in infrastructure sector

Trained human resources

Availability of finance from domestic financial institutions

Existing barriers to further tech up-gradation: WHR (high costs) and waste utilization (institutional and regulatory issues)

Small and Medium Enterprises

Around 50 million units employing 120 million people

Accounts for 8% of GDP, 45% of manufacturing output and 40% of India’s total exports

Manufacturing over 6000 products

Many energy intensive sectors such as foundry and forgings, glass and ceramics, brick, textiles, dairy and food processing and so on

Clustering of industry: over 200 energy intensive manufacturing clusters exist

Deploy obsolete technologies and unskilled manpower

Scope to save energy by adoption of Energy Efficient Technologies (EETs), Renewable Energy Technologies (RETs) and Best Operating Practices (BOPs)

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Case study 1 : Energy Efficient Furnaces in SMEs – Firozabad glass industry cluster example

Largest glass cluster accounting for 70% of total glass production in SME sector

Pot type furnaces are used mainly for glass melting to produce glass bangles

Almost all melting furnaces (~ 85) switched over to TERI designed energy efficient furnaces in the last 15 years under a long term technology transfer project

Project supported by SDC under a bilateral program between Switzerland and India

Approach followed: Research, Development, demonstration and dissemination of efficient technology

Recuperative natural gas fired

pot furnace

Conventional coal fired pot

furnace

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Case study 1…. : Firozabad glass industry cluster

Total annual glass production by pot furnaces is 190,000 tonnes

Energy cost accounts for about 30% of total production cost

Consistent energy saving of about 30-35% achieved as compared to conventional furnaces

Estimated annual NG saving in Firozabad glass cluster is 29 million cubic meter

Equivalent energy cost saving is USD 8.5 million annually

520

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SEC- Before SEC-After

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Case Study 2: SIDBI-WB-GEF project in 5 MSME clusters

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Clusters: Pune (forging), Kohlapur (foundry) and Ankleshwar (chemicals), Varanasi (mixed industries), Thane (mixed industries)

Time period: 2012-16

Project partners: BEE, SIDBI, WB and TERI

Covered 400 MSME units

Support provided: Energy audits, IGDPRs, technical support in implementation of energy conservation measures

About 47% energy saving achieved w.r.t. identified; investments had about 1 year payback period

Conclusions Industry sector consumes almost 50% of the total

energy consumption

Larger industries primarily working towards adoption of EETs and Best Operating Practices

o Need for expansion of PAT scheme

Huge opportunities for energy efficiency in SMEs

o Financial and technology related barriers

o Need for focused RDD&D programs in energy intensive SME sectors & appropriate business models for up-scaling

Many opportunities in buildings, municipal, agriculture and transport sectors Push towards to LEDs (EESL aggregation model)

Standards and Labeling Program for appliances (ACs, ceiling fans, …)

Green buildings

Energy efficient agricultural pumps

Municipalities: Water pumping and street lighting

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Email: [email protected]