NMEEE – FOUR NEW

INITIATIVES

Energy Intensive In dustries Stimulate Funding

for
Targets for Mandatory ESCOs
Energy Saving

PAT EEF
P
NMEE
E
Instrument for EE
Energy
BL Efficient MTEE FEEED
Y
Fiscal
DSM Public Procurement
Appliances PRGF
SEEP
VCF
 Minimum annual energy consumption and estimated number of
Designated Consumers (DCs) in select sectors

Minimum annual energy consumption for No.of

Sector the DC (tonnes of oil equivalent) DCs
Aluminium 7500 10
Cement 30000 85
Chlor-alkali 12000 22
Fertilizer 30000 29
Iron and Steel 30000 (20000 – PAT-II Cycle) 67
Pulp and Paper 30000 ( 20000 – PAT –II Cycle) 31
Textile 3000 90
Thermal Power Plant 30000 144
Total 478
 Annual Energy No. of
Industry Sector Consumption Norm to Identified DCs New DC’s in
be DC (mtoe) PAT-II Cycle
In PAT-I
Aluminum 7500 13 4
Cement 30000 127 25
Chlor-Alkali 12000 20 3
Fertilizer 30000 22
Pulp & Paper 30000 42 15
Power 30000 153 100
Iron & Steel 30000 65 70
Textiles 3000 226 60
Refineries 90000 20
Railways Zonal Traction-70000
Workshops/prodn 100
units 30000
DISCOMS AT&C losses 50
10000MU or 86000
 Estimated Energy Consumption
in DCs

Sector MTOE
Power (Thermal) 160.3
Integrated Steel 26.98 About 55% of DCs
Contribute 96% of Total
Cement 14.47 Consumption
Fertilizer 11.95
Sponge Iron 9.1
Textile 3.5
About 45% of DCs
Aluminium 2.42 contribute rest 4% of
Paper 1.38 Total Consumption
Chlor-Alkali 0.43
TOTA 230.53
L
 Sector wise Energy consumption and Energy Saving Targets under
PAT Cycle-1 (2012-15)

Energy Saving Targets

No.of Identified under PAT Cycle-1
S.No Sector DCs PAT Cycle-1 (million toe)
1 Aluminium 10 0.456
2 Cement 85 0.816
3 Chlor-alkali 22 0.054
4 Fertilizer 29 0.478
5 Iron and Steel 67 1.486
6 Pulp and Paper 31 0.119
7 Textile 90 0.066
8 Thermal Power Plant 144 3.211
Total 478 6.686
 Activity Flow Sheet
Baseline & Target
Setting
Designated
Consumer
Baseline Format
Design

Prepare PAT Issue of e-Certs

Assessment after successful
Document (PAD) M&V
Finanalization
of DC List Getting
Information
Through Base Line
Format
BE
E
Getting information
through “Form#1” Data Compilation/
Evaluation

Verification
through of PAD forRecommendation
e-certification
DENA

Target Setting
[Declaration of Base
Year, Target Year ]
Validation of PAD
through
DENA
 CDM PROJECT CYCLE

Project Project Idea Registration CDM-EB

Proponent

Project Project Design Monitoring of Project

Document Emission Reductions
Proponent Proponent

Host Country Approval Verification & Certification DOE

DNA
of Emission Reductions

CDM-EB Approval CER Issuance CDM-EB

Baseline Methodology

Validation
DOE
 PAT Activity Flow Sheet

Getting Information Target Setting

Data Compilation/
Through Base Line Evaluation [Declaration of Base
Format Year, Target Year ]

Baseline & Target Setting (based on last three years)

Preparation
Communication to BEE Performance Communication to
(Annual and SDA Assessment Document Designated Consumer
submission (PAD or Form
but the
target A)
compliance
for three Issuance of ESCerts after successful M&V
years)

Verification of PAD Check Verification of PAD Market for

through (Form C) through DENA Trade
DENA submission of compliance
&
doc (Form D).
(Form B)
PAT–Timeline
WHEN? for issuance of ESCerts
1st 30th 30th
April June Nov.

M&V- 15 Days 15 Working

10 Working Days
Submissio Days
n of FORM
I, Form
A,B, SDA’s
Sectoral Scrutiny
Proforma BEEs
Scrutiny BEEs
recommen
dation to
Issue of
Central
ESCerts
Governme and
nt
Trading

10
 General Rules for Establishing Baseline

Definitions:
• Baseline Year
• Baseline Production (Pbase)
• Baseline SEC (SECbase)
• Baseline CU% (CUbase)
• Target SEC (SECtarget)
• Target
: 2009-10
: Avg. of 2007-8, 2008-9 & 2009-10
: Avg. of 2007-8, 2008-9 & 2009-10
: Avg. of 2007-8, 2008-9 & 2009-10
: SEC as estimated in 2014-15
: %reduction from SECbase

Estimation of Energy Saving (MTOE) :

P base ( SEC base – SEC target )
 Concept of Target, Compliance, ESCerts &
Penalty

Issued Escerts Penalty

Baseline
SEC

Target Achieved SEC

Compliance

Target
SEC

Purchase
Escerts

Scenario 1 Scenario 2
Example

SEC in baseline: 10 toe/unit of production

Baseline Production: 10000 units
Target: 4% reduction in SEC
SEC at the end of 2014-15: 9.6 toe/unit prod
For ESCerts or Penalty:

• Reduction requirement: 4000 toe

• Case1 (Achieved SEC = 9.8): -2000 toe
(Penalty)
• Case2 (Achieved SEC = 9.4): +2000 toe
(ESCerts)
Market Design

ESCerts are issued

• When energy efficiency improvements

surpass targets
• With 1 mToE = 1 ESCert
• Banking of ESCerts allowed during each
cycle
- 1st cycle ESCerts to 2nd cycle
- 2nd cycle ESCerts to 3rd cycle
Normalization factors
 Normalization Area

Raw Material and

Input Secondary
Product
Energy [Electricity]

Technology & PAT Input PrimaryEnergy

Environment Standard Normalization [Fuel]

Capacity Utilization or
Natural Disaster
PLF
Input PrimaryEnergy
[Fossil Fuel]

Fuel Linkage and Quality of Fuel

Use of Biomass and Waste Fuel
Non Availability of Fuel
Re-Cycling
By Productused as Fuel

Plant has to maintain the relevant documents to justify their cause

Role of AEA

Verification of Form A
Shall assess the correctness of the information provided by
the designated consumer regarding the compliance with
energy consumption norms and standards.
Shall report the results of assessment andhis opinion
along with the supporting documents.

Submission of Form B
In case the AEA records a positive opinion in his report, BEE
shall consider that all the requirements with regard to the
compliance with energy consumption norms and standards,
entitlement about issue or liability to purchase energy savings
certificate have been met.
 Effect of 1 Kcal/kwh

7 Targets
Notified target specific Energy saving certificates Revised target specific
energy consumption for issues energy consumption for
savings for the cycle the cycle
Year Kcal/kwh Nos Toe/ton of product
Mention the year (
7A 2010-11 )
Mention the year (
7B 2011-12 ) 2492.5
Mention the year
7C (2012- 13 )
8.Specific energy consumption
Specific energy 2513.41
consumption(base
8A line) Kcal/Kwh
Production(baseli 22231.5
8B ne) MU
Achieved specific 2491.5
energy
8E consumption Net kcal/ kWh
Energy savings 2223.15 2223
8H certificates Nos
Cost of E-cert 10968 2.44
 Targets
Notified target Energy saving
specific certificates issues
energy Revised target
specific energy
consumption consumption for the
for savings for cycle
Year Kcal/kwh
the cycle Nos Toe/ton of product
1 Target 2964.29
Specific energy consumption
2 Baseline 3246 Kcal/Kwh
Generation 6632
3 (baseline) MU
Achieved 2963.29
specific energy
4 consumption Net kcal/ kWh
663.20 663
Energy savings
5 Nos
certificates
Cost of one E-
6 cert 10968 10968 Rs.
Effect of 1
7 kcal/kwh 0.727 Rs. Crores
Target to be
8 achieved 281.71
9 Burden on DC 204.915 Rs. Crores
 AHP CHP
Compressors

HT Aux –
90% LT Aux
– 10% DEA
ECO

WATER CREEK
CONDENSER

BFP CWP
9 mw 5.04 mw
CEP
0.625 mw
APH
4.70 mw

ES
2.7 mw P
FD Fan
1.45 mw ID Fan 3.5 mw
Coal Mill PA Fan
 TYPICAL BREAK-UP OF APC IN TPS

PLANT CAPACITY 500 MW 210 MW 110 MW

% OF % OF % OF % OF % OF % OF
LOAD GEN. APC GEN. APC GEN. APC
BFP'S 0.00 0.00 2.69 33.63 2.94 24.50
CE P'S 0.40 5.66 0.27 3.34 0.38 3.19
CW PUMPS 0.99 14.15 0.66 8.31 1.26 10.50
ID FA NS 1.31 18.72 1.26 15.77 1.71 14.23
PA FA NS 0.59 8.47 0.68 8.50 1.73 14.46
FD FA NS 0.29 4.07 0.40 5.00 0.26 2.13
MILLS 0.58 8.26 0.58 7.23 0.83 6.92
CT FA NS 0.23 3.22 0.32 3.94 0.48 4.00
AIR COM PRE SSORS 0.08 1.15 0.12 1.56 0.24 2.00
A/C PLANT 0.04 0.52 0.08 0.94 0.11 0.92
COA L HANDLING PLANT 0.12 1.76 0.14 1.70 0.29 2.41
ASH HANDLING PLANT 0.09 1.35 0.13 1.66 0.31 2.54
LIGHTING 0.06 0.79 0.08 1.00 0.11 0.88
OTHERS 2.23 31.87 0.60 7.44 1.36 11.32
AXU. POW E R CONS 7.00 100.00 8 100 12 100
GE NE RA TION (MW ) 480.00 200 95
 Typical Break up of APC

mu %
Total Generation (100 % PLF) 20.16
Auxiliary Power Consumption (@ 7 %) 1.41 100
Contribution To APC By
BFP's 0.559 39.2
CEP's 0.045 3.1
FD's 0.093 6.5
ID's 0.172 12.0
PA's 0.136 9.5
Mills 0.116 8.1
CHP 0.022 1.5
AHP 0.072 5
Station Lighting 0.013 0.9
Air Compressor's 0.026 1.8
Refrigeration (Except AHU's) 0.017 1.2
Others (CWP’s, RWP’s, DM Plant, etc ) 11.14
Total 100.00