Girish Sethi TERI, New Delhiniti.gov.in/writereaddata/files/Girish Sethi.pdf · Pumps Blowers...
Transcript of Girish Sethi TERI, New Delhiniti.gov.in/writereaddata/files/Girish Sethi.pdf · Pumps Blowers...
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
2
0
200
400
600
800
1000
1200
1400
1600
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
3
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
4
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
5
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
10
--11
12
--13
14
-15
MT
Production Capacity
Source: Data analysis by NCCBM, 2014
6
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
7
8
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)
9
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
10
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
365
0
100
200
300
400
500
600
SEC- Before SEC-After
Sm
3 p
er
ton
ne g
las
s
me
lt
11
Case Study 2: SIDBI-WB-GEF project in 5 MSME clusters
12
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
13
Email: [email protected]