Low Carbon Growth Issues in SME Sector

1. Low Carbon Growth Issues in SME Sector S.P.Garnaik Technical Expert German Technical Co-Operation (GTZ) Bureau of Energy Efficiency, Ministry of Power, GOI

2. Highlights of SME Sector in India ………. Significant Segment of Indian Economy : - Contributing about 7% to GDP - Employment to over 28 million people - Current Production value 200 billon $ - 40% of Industrial Production Highly Diversified Operations: - Traditional crafts to high-tech industries - Mostly populated through clusters - More than 12 Million units

3. High Emission Sources….. Boiler Heating Direct Combustion of Fuel Furnace Vehicles

4. High Emission Sources….. Lighting Pumps Fans/Blowers HVAC Compressors T & D LOSS 17 % MOTOR LOSS 10 % NETWORK LOSS 5 % MECHANICAL SYSTEM LOSS 30% More Electricity Consumption • = 0.83 X 0.95 X 0.90 X 0.70 = 50 % ONE Unit Saved = TWO Units Generated

5. 1 unit (KWH) 2 units (KWH) = 1720 Kcal 4914 Kcal 1.64 KG 3.04 KG of CO2 The Energy Chain

6. Few Energy Fact Files of SME Sector(Excerpts from various studies) • Both Primary (FO,Coal,Lignite,NG etc.) and Secondary (Electricity) energy sources are used • The energy cost is in the range of 20-40% of total cost of production • The share of electricity is about 8 – 26 % of total energy consumption • Textile units, most of which are in SME range, have been declared as ‘Designated Consumer’ as per EC Act, 2001 • Substantial Gap in SEC as compared to world best practices • 30-50 ltr of oil and 80-200 kwh electricity consumed in Rolling Mills to produce 1 T of finished product against best practices figures of 25 ltr and 60-65 kwh respectively

7. Options for Low Carbon Growth

8. Energy Efficiency Waste / By-Product Energy(Kcal) PROCESS • Reduction of SEC through Energy Efficiency • Energy Saving Potential to the tune of 20-30 % • More Potential in Thermal Utilities Product (Ton) Material SEC ( ) = Kcal Ton • Improvement of Combustion (Saving Potential 20-40% in fuel) • Control of 3 ‘T’s (Time, Temperature & Turbulence) • Burner Technology • Use of Energy Efficient Equipments (Saving Potential 10-30% in Electricity) • EE Motors, Pumps, Compressors, Lighting System etc. • VFDs • Controls & Sensors

9. Waste Energy Recovery • Excellent Potential in all sectors • Avenues are at ‘Exhaust Flue Gas’, Steam Condensate, Radiative Heat etc. • Flue gas of 1540 actual M3/hr @ 644 deg C • Waste heat content of this brazing furnace is about 150000 Kcal/hr @ 644 deg C • Recovery of this waste heat resulted in saving of 36 KL of HSD per year (about Rs. 11 lac) Considering 5000 hrs of operation per annum, it is estimated that about 1680000 kcal/annum heat loss is occurring due to improper insulation. This is equivalent to a about 210 ltr of HSD per annum

10. Waste Energy Recovery Condensate @ 60-70 deg C is drained out Hot-zone in a Furnace Surface as observed in Thermography Camera

11. Demand Side Management 1 KVA KVA KVAR KVAR KW KW • HVAC System • Pumps • Air Compressors • Fans & Blowers • Lighting etc… 2 KVA KVAR KW

12. Maintenance Practices Loose & Corrosive contacts in electrical joints increases the Energy Loss The above thermogram indicates high bearing temperature of a DE bearing resulting in significant energy loss. The reason for this high temperature was found to be improper lubrication

13. DG SETS Loading

14. DG SETS Trial

15. Option #1 : In the present condition, replace the cooling water line, repair the CTs for better heat transfer, improve the ventilation of DG room and do the overhauling of the 1000 KVA and one 500 KVA DG sets DG SETS – ENCON Options It is expected that 2x500 KVA DG sets can be stopped. The estimated saving is = 2 nos. x 60 ltr/hr x 3 hrs/day x 300 days / annum =108000 ltrs/annum. This amounts to Rs. 32.4 lac per annum @ Rs. 30/- per liter. Expected Investment : Replacement of Pipes = Rs.5.0 lacs Repair of CTs = Rs.3.0 lacs Overhauling of DGs = Rs.12.0 lacs Total = Rs.20.0lacs The simple pay back period = 8 months

16. Required Pr. 3.5 - 4.0 Kg/Cm2 Compr #1 Receiver #1 Compressed Air System 11.2% of Total Load (168KW) Energy Share = 20% To Plant Compr #2 Compr #3 Receiver #2 Make : Ingersoll Rand RPM : 510 (Belt driven from 1460 rpm drive) Discharge Pr.: 135 Psi FAD : Not Available Motor Details: 37.5KW / 52 amp / 415 volt/1460 rpm Air Receiver: 125 lbs working pr. 140 lbs design pr.

17. Time taken from cut-in to cut-off pressure (T1) = 9 sec Time taken from cut-off to cut-in pressure (T2) = 10 sec % leakage = [T2/(T1+T2)]*100 = 52.63% Leakage quantity = 52% of 835 m3/hr = 434 m3/hr Compressed Air System – Leakage Test This is a huge quantity and direct monetary loss. It is quite certain that if these leakage points are arrested, one compressor can be easily stopped. Resulted in an energy saving of 1,44,000 kwh per annum. Financial saving of about Rs.5.76 lacs per annum

18. Issues on Low Carbon Growth • Poor Awareness about Energy Efficiency and its impact on productivity in particular and environment in general • Poor knowledge about energy economics • Reluctance to change the methods, concepts & technology and Adverse to Risk • Unawarenessabout the saving potential : Energy Audit is a must-to-do option • Non-availability of Technical consultants or LSPs • Non-Availability of Electricity / Reliable power • Financial barrier in implementation • Improper Penetration of interventions made so far by various agencies • Poor multiplier Effect among clusters • Little / No R & D Effort, Ineffective Govt. intervention

19. Summary of Issues for LC Growth • Internal Issues (70%) ……… 90% effective • Technical : Solvable,adaptible, practicable • Financial : Suitable framework required • Operational : Low cost option, requires confidence • Knowledge Management : Highly desirable • External Issues (30%)……… 10% effective • Resource availability : Least control, • Govt. Intervention / Actions : Effective mechanism required

20. Thanks …. For further information, Please Contact S.P.Garnaik Technical Expert German Technical Cooperation (GTZ) Bureau of Energy Efficiency New Delhi-110066 Ph.: 011-26179699 Email: soumya.garnaik@gtz.de