Importance of EC/EE Approach to EC Barriers to greater Energy Efficiency PDCA Approach

1. Energy Conservation Aspects during Project ImplementationVK SrivastavaGeneral Manager(Technical Services),IndianOil Corp. Ltd(Haldia Refinery)srivastavavk2@indianoil.in

2. The Flow • Importance of EC/EE • Approach to EC • Barriers to greater Energy Efficiency • PDCA Approach • System Implementation Bottlenecks. • Way Out

7. Why Manage Energy? What we offer as implementation consultant:- • Energy Cost is growing rapidly rather steeply. • Project is future tense, an EE Technology shall give fruit @ prevailing Energy Cost • Even with good returns, energy waste is still prevalent in all organizations. • It is important because it enables you to: Reduce costs – this is becoming increasingly important as energy costs rise. • Reduce the damage that we're doing to our planet. • Reduce our dependence on the fossil fuels that are becoming increasingly limited in supply. • Other Cascading Effects

8. World CO2 Emission Savings 45 Share of cumulative abatement between 2010-2035 Gt Current Policies Scenario 42.6 Gt 7.1 Gt 40 Efficiency 50% New Policies Scenario Renewables 18% 35.4 Gt 35 Biofuels 4% Nuclear 9% 13.7 Gt 30 CCS 20% Source: WEO 2010 25 450 Scenario 21.7 Gt 20 • New Policies Scenario is the central scenario in WEO-2010 • assumes cautious implementation of recently announced commitments & plans, even if yet to be formally adopted • The 450 Scenario sets out an energy pathway consistent with the goal of limiting increase in average temperature to 2OC 2008 2015 2020 2025 2030 2035

9. India – CO2 Emission Reduction Share of cumulative abatement between 2010-2035 Efficiency 51% Renewables 32% Biofuels 1% Nuclear 8% CCS 8%

10. Energy Efficiency: The Fifth fuel • Energy efficiency is generally the largest cleanest, least expensive, most quickly deployable, least visible, least understood, and most neglected way to provide energy services • Reduced energy intensity is the fastest growing source of energy • Its Most low Hanging Fruit. • Amory Lovins • http://en.wikipedia.org/wiki/Amory_Lovins

11. Ad hoc approach

12. Senior management commit to program Initial savings sustained +5% 0 Costs -5% Housekeeping first – then investment -10% -15% Becomes company culture -20% -25% Investment 0 Years 3 Source: UNIDO 2010 Structured Approach with Energy Conservation

13. Why EC • EC at Project Stage Gels with Equipment best. • Intervention at later stage is tough. • Strengthens management focus on Energy • Creates awareness/encourages commitment across a company/organization • Introduces and sustains a systematic approach to efficiency • Requires management commitment of resources appropriate to the goals of the EnMS • Is based on measurement • Provides continuity through changes in personnel

14. EC Challenges

15. Barriers to Energy Efficiency • Management focus is on Timely Project Completion and not on EC thus Environment • Lack of information and understanding of financial and qualitative benefits: Seen EC as cost not investment • First costs are more important than recurring costs disconnection between capital and operating budgets. • Lack of technical training on systems of energy efficiency • Technical knowledge exists but resides with individuals rather than with the organization  sustainability risk • Poor Measuring system and MIS.

16. Energy management challenges More……. • Culture of extravagance and waste • Lack of energy competency • Lack of market support to energy technology • Fears of compromising the Time Schedule • Legislation to impose or promote energy efficiency • Shortage of energy metering and control systems • Attitudinal Change • Sometimes Top-Down Approach is weak due lack of commitment of Top Management.

17. Resistance to Change Most of Installations have already installed Numbers of other systems, Resistance to one more new system

18. O My God: One More System

19. There is no acceptable Protocol on Measurement & Verification for Energy Saving • Proposal Justification becomes tough: Fund Allocation from Management/FIs is issue.

20. Purchase Boundary Issues: • Industry does not Support Energy efficient Equipment Purchases. • This requires comparison on the basis of LCC • Deviating from L1 Policy is an issue. • Energy efficient Equipment Vendor Availability is an issue Requiring Single Party purchase. • Taking Finance & Purchase on Board is Tough. • Suggest to go for Strong TQC and Two Bid System for weeding out.

21. EC Triangle

22. Way Ahead

23. Changing Paradigms; Current • Business Profitability • Safe and efficient operator of plant & workplace • Compliance of environmental regulations • Corporate social responsibilities • Market related issues. Emerging • Manage GHG émissions, carbon-footprint, Green Balance sheet. • Energy Conservation/Efficiency as Brand Equity

24. The Solutions: optimize comfort zone; design to capacity; avoid oversizing; bigger is not always better Optimum Requirements single machine cannot do everything; provide flexibility to accommodate variability; VFD is a feasible option Flexible Design consider LCC; energy efficient equipment may have higher initial cost but lower operating cost Efficient Equipments run systems at best efficiency; stop when not required; nothing consumes less than a turned off device Effective Monitoring people make or brake systems; people are the brains behind system success Competent People

26. We Believe Each and every one has the energy to save energy and we must use that energy to save energy every moment in every way we can!

27. QuestionsYOUARE WELCOME