Perform Achieve and Trade (PAT)Methodology- Baseline Normalization, Energy Performance Indicators, Targets and M&V

4th July,2012

K . K. Chakarvarti Bureau of Energy Efficiency New Delhi

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE)

The National Action Plan on Climate Change was released by Prime Minister of India in June 2008 The Action Plan Outlines 8 Missions including National Mission for Enhanced Energy Efficiency (NMEEE) The basic objective of the NMEEE mission is to ensure a sustainable growth by an approximate mix of 4 Es, namely-Energy, Efficiency, Equity and Environment

NMEEE Four New Initiatives

Perform Achieve and Trade (PAT): A market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded. Market Transformation for Energy Efficiency (MTEE): Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable Energy Efficiency Financing Platform (EEFP): Creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings. Framework for Energy Efficient Economic Development (FEEED): Developing fiscal instruments to promote energy efficiency

NMEEE Four New Initiatives

Energy Intensive Industries
Targets for Mandatory Energy Saving

Stimulate Funding for ESCOs

PAT

EEFP

NMEEE
MTEE
Energy Efficient Appliances
Super Energy Efficient Program

FEEED
Fiscal Instrument for EE
Partial Risk Guarantee Fund Venture Capital Fund Public Procurement

Provisions in the Energy Conservation Act As per Section 14(g) of EC Act, 2001 [Establish and prescribe such energy consumption norms and standards for designated consumers as it may be considered necessary: provided that the central government may prescribe different norms and standards for different designated consumers having regard to such factors as may be prescribed] the central government can stipulate energy usage norms for designated consumers.

The Energy Conservation (Amendment) Act , 2010

Main Amendments The Central Government may issue the energy savings certificate to the designated consumer whose energy consumption is less than the prescribed norms and standards in accordance with the procedure as may be prescribed. The designated consumer whose energy consumption is more than the prescribed norms and standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms and standards.

The Central Government may, in consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed.

Perform, Achieve & Trade (PAT) Mechanism

The key goal of the PAT scheme is to mandate specific energy efficiency improvements for the most energy intensive industries. The scheme builds on the large variation in energy intensities of different units in almost every sector, ranging from amongst the best in the world, to extremely inefficient units as well. The energy intensity reduction target mandated for each unit is dependent on its current efficiency : the reduction target is less for those who are more efficient, and is higher for the currently less-efficient units. The design of PAT is the result of extensive consultations over the last two years (2010-11 and 2011-12), which have contributed to its robustness and simplicity.

Reasons for Large Energy Usage Bandwidth

The energy usage pattern varies widely in industries of a particular sector due to various diversities like
-Scale of Production (Installed Capacities) - Use of Raw Material - Process Technology - Vintage - O & M Practices - Type of Product Output etc. a) a) a) a) a) a) Factors of Diversity Raw Material Input Quality of Raw Material / Fuel Process & Technology Final Product output Vintage Capacity Utililization Most Affected Sectors Pulp & Paper, Fertilizer, Power Plant, Textile All sectors Aluminium, Iron & steel, Chlor-Alkali, Paper Textile, Iron & Steel, Aluminium All Sectors All sectors

Number of Designated Consumers (DCs) as notified under Indian Energy Conservation Act
Industry Sector Annual Energy Consumption Norm to be DC (toe) 7500 30000 No. of Identified DCs

Aluminum Cement

10 85

Chlor-Alkali
Fertilizer Pulp & Paper

12000
30000 30000

22
29 31

Thermal Power
Iron & Steel Textiles

30000
30000 3000

144
67 90

PAT - METHODOLOGY

PAT Scheme : Background & Scope

Covers 478 designated consumers in 8 sectors All DCs consume about 165 million toe energy Targets would be given to all DCs to achieve the same within a time frame -Achievement > Target -Achievement < Target E-Scerts Purchase E-Scerts / Penalty

The Energy Savings Certificates (ESCerts) so issued will be tradable on special trading platforms to be created in the two power exchanges (Indian Energy Exchange and Power Exchange India). National Target = 6.686 million toe at the end of 1st PAT Cycle ( by 2014-15)

PAT Scheme : Approach Towards Target Setting

Establishment of Baseline : As per reported data of 3 years (2007-08 to 2009-10) Normalization Factors Average of last 3 years value Targets to be statistically calculated based on relative SEC approach after grouping the DCs suitably

The target reviewed notification

by an expert committee before

Estimation of Energy Savings

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

Estimation of Energy Saving (TOE) : P base ( SEC base SEC target )

National Energy Saving Targets under PAT (%) (2012-15)

Concept of Target, Compliance, ESCerts & Penalty

Issued Escerts
Baseline SEC

Penalty

Saving Target
Target SEC

Achieved SEC
Compliance

Purchase Escerts

Scenario 1

Scenario 2

Example
Specific Energy Consumption (SEC) in Baseline year: 10 TOE/unit of production Baseline Production: 10000 units Target: 4% reduction in SEC SEC in the target year: 9.6 TOE/unit production For ESCerts or Penalty: Reduction requirement: 4000 TOE Scenario 1 (Achieved SEC = 9.4): +2000 TOE(ESCerts) Scenario 2 (Achieved SEC = 9.8): -2000 TOE (Penalty)

Market Design
ESCerts are issued
When energy efficiency improvements surpass targets With 1 toe = 1 ESCert Banking of ESCerts allowed during each cycle
1st cycle ESCerts to 2nd cycle 2nd cycle ESCerts to 3rd cycle

Advanced ESCerts
Baseline, SEC(b) = 10 toe/t Target, SEC (t) = 7 toe/t Achieved after year 1, SEC (a) = 8.5 toe/t Production = 10000 tons

AFTER YEAR 1 ESCerts =[(SEC(b) (SEC (b) SEC (t))/3) SEC(a)] x 80% x prod = ((10 (10-7)/3) 8.5)) x 0.8 x 10000 = (9-8.5) x 8000 = 4000 ESCerts
Revised Target = SEC(t) (ESCerts/Prod) = 7 (4000/10000) = 6.6 toe/t

Perform, Achieve & Trade (PAT) - Summary

Reward over achiever

Market Based Mechanism

Designated Consumers
8 sectors Thermal Power Plant, Steel, Cement, Fertilizer, Pulp & Paper, Textile, Aluminium, Chlor-alkali

Penalize under performer

Stakeholders

Administrator
Set target and compliance period

Auditing Agencies
Independent Monitor, verify and certify

Market Place
Transaction of energy efficiency instrument

Set Targets Processes Involved

Setting targets on the basis of baseline specific energy consumption Set compliance period

Monitoring & verification of targets by Designated Energy Auditors (DENA) Check if designated consumer has achieved targets Underachievement: Obligations to buy ESCerts or pay penalty Overachievement: Issuance of ESCerts for banking for later use or trade

Trading of ESCerts
Participation by Designated consumers on platform provided by Power Exchanges Symmetrical flow of information

PAT for Cement SectorA Case Example

Indian Cement Industry

India is the second largest cement market in the world, accounting for about 6% of the worlds cement production The cement industry uses coal and electricity as the main sources of fuel. Energy cost accounts for about 40% of the total manufacturing cost in some of the cement plants and coal accounts for 15%20% of the total production costs. The specific thermal energy consumption and electrical energy consumption for state-of-the-art cement plants are as low as 658 kcal/kg of clinker and 65 kWh/ton of cement, respectively.

Indian Cement Industry (contd.)

The specific energy consumption patterns of most of the plants very, having wide band variation. This happens mainly because of plants having different product mix based on addition of Pozzolona, Slag and Fly Ash and different blending percentage. The pure cement being Ordinary Portland Cement (OPC) and no dilution by additives, consumes the highest energy per ton. The blending with additives to manufacture other varieties reduces the Specific Energy Consumption per ton.

Indian Cement Industry (contd.)

Because of these complexities, it becomes extremely difficult to come to a common model to arrive at standardized SEC per ton. Considering all these situations, the conversion factors and best possible combination and categorization have been worked out so that no Designated Consumer may have any grievance on the targets set out While setting targets , units best in the group as reference and then worked out targets for others.

Normalization of Product Mix

Raw Material

Cement Plant
Clinkering Unit (Clinker Production) Grinding Unit
Clinker + Gypsum+ additives* = Cement (OPC/PPC/PSC/any other Variety) *(fly ash/Slag/any other unit)

Clinker Exported to Other Unit

Clinker Imported from Other Unit

Cement Dispatched

Conversion of Cement Equivalent to Major grade = (Cement production of a particular grade) X (CF* of Same grade)/(CF of Major grade) Total Cement Production Equivalent to major grade =Production of all grades of cement equivalent major grade + (exported clinker equivalent to major grade Cement)**
*CF (Conversion Factor)= Clinker used for x grade/Cement Production of x grade **Conversion of exported clinker to equivalent major grade cement = Clinker exported/CF of major grade cement

EXAMPLE- INPUT & OUTPUT FOR A TYPICAL CEMENT PLANT

Coal (Indian) (1,03,339 Tons/yr ,GCV 3438 kcal/kg) Coal1 (Imported) (6246 Tons/yr, GCV 5454 kcal/kg) Furnace Oil (669 Tons/yr, GCV 10000 kcal/kg) HSD (570 Tons/yr , GCV 8600 kcal/litre)

CPP
(Heat Rate 3135 kcal/kWh)

3148 lakh KWh

GRID (Exported)
(19.35 LAKH kWh/YR)

DG SET
(Heat Rate 2212 kcal/kWh)
2.09 Lakh kWh

Crushing and Mining (Exported)

(25.12 LAKH kWh/YR)

Grid Electricity (53.08 Lakh KWh) Colony, (5.1 Lakh kWh) Coal2 (Imported) 124746 Tons/yr, GCV 6192 kcal/kg) Pet Coke (3316 Tons/yr, GCV 8400 kcal/kg)

Crushed Limestone
Iron Ore, Bauxite,Gypsum

Clinkerization (Raw Material Processing & Pyro-processing) PPC

(14.92LAKHTONNE/YR)

Flyash, Slag, Etc

Clinker (0.06 Lakh Tons/yr)

Grinding (VRM and RP &BM)

OPC
(0.08 LAKH TONNE/YR)

PSC /OTHER
(2.30 LAKH TONNE/YR)

Note: All values presented in the above diagram are average of annual energy consumption of 2007-08, 2008-09, 2009-10

Methodology for Baseline and EPIs (Summary)

For each plant, different types of cement products and exported clinker are converted in to equivalent major product produced by that plant with the help of conversion factor, reported by the concerned plant. Thermal Energy Input is arrived at by taking all type of fuels into account. Electricity Purchased is converted in to equivalent thermal energy by multiplying it with 860. Whereas the electricity exported to grid is calculated similarly by multiplying it with 2717 (national avg. heat rate). Notional energy is also imposed on imported power Notional Equivalent Thermal Energy for Imported Power= Electricity purchased from Grid x (Weighted avg. heat rate of CPP of Cement plants-860).

Methodology for Baseline and EPIs (Summary)

Total GtG Energy Consumption is calculated by adding the thermal inputs through all type of fuels, electricity purchased and subtracting the power exported to grid. Notional Energy (equivalent thermal energy) for Exported and Imported clinker are calculated based on thermal and electrical SEC reported by the concerned plant, wherein the Electrical kWh is converted into thermal kCal by multiplying the weighted average heat rate of the all form of electricity used in plant The notional energy required for exported/imported clinker is added to the total thermal and electrical energy consumed by the plant only to arrive at the Gate to Gate Sp. Energy Consumption.

Perform, Achieve and Trade (PAT) Scheme

Normalization Factors (DRAFT) The following normalization factors have been considered in consultation with the Sectoral Expert Committee and various plants in the cement sector: a. Equivalent major grade of cement production The various product mixes are converted in to equivalent major grade of cement product by the plant by using the following formulae: i. Conversion of Ordinary Portland Cement (OPC) production equivalent to major product
Equi val ent Major Pr oduct OPC Pr oduced (Mi l l i onTon) Conversi on factor of OPC Conversi onFactor of Major Pr oduct [Million Ton]

ii. Conversion of Portland Pozolona (PPC) Production equivalent to major product

Equi val ent Major Pr oduct PPC Pr oduced (Mi l l i onTon) Conversi on factor of PPC Conversi onFactor of Major Pr oduct [Million Ton]

iii. Conversion of Portland Slag Cement (PSC)/any other variety of Cement Production equivalent to major product
PSC or any othervar ietyCementPr oduced(Million Ton) Conversion factorof Equivalent Major Pr oduct PSC or any other var iety Cement Conversion Factorof MajorPr oduct

iv. Conversion of Total Exported clinker to major product

Equi val ent Major Pr oduct

[Million Ton]

Total Exported Cl i nker (Mi l l i onTon) [Million Ton] Conversi onFactor of Major Pr oduct where: Total Exported clinker= [Clinker Exported to other plants + clinker exported to clinker stock over and above the opening stock,]

v.

Conversion of Total Imported clinker to major product

Equi val ent Major Pr oduct Total Imported cl i n ker (Mi l l i onTon) Conversi onFactor of Major Pr oduct

[Million Ton]

where: Total Imported clinker= [Clinker Imported from other plants + clinker Imported from clinker stock, equivalent to the quantity by which the clinker opening stock gets reduced] Total Equivalent major product of Cement It can be arrived at by summing up all the different grades of cements equivalent to major product calculated above: Total Equivalent major product of Cement = a(i) +a( ii) +a(iii) + a( iv) [Million Ton] Note: S.No. a(v) is already accounted in major product a. Calculation for Gate to Gate Specific Energy Consumption (SEC) i. Total Thermal Energy Consumption (Kiln + power Generation)
Total Thermal Energy Consumptions to be calculated as:Total Thermal Energy Consumption= [{Fuel consumed (kiln+ power generation) (Million Ton) X Gross calorific value of respective fuel (kcal/kg) X 1000}-{Electricity exported to grid (Million kWh) X 2717 (kcal/kWh)}]

vi.

[Million kcal] where: - 2717 kcal/kWh is the National Average Gross Heat Rate of Thermal Power Stations in the country in 2007.

Note: - 1.With reference of definition of Energy as defined in the EC-ACT 2001, if biomass is used in the Kiln (in case of a cement plant), it does not form a part of energy and its energy value is not to be accounted. But, if the same biomass is used in a captive power plant, which is connected to the grid (whether exporting electricity or not), the same biomass gets covered as energy and its energy value is to be considered. 2. Clinker opening and closing stock has now been incorporated in the form -1, which automatically generates the summary sheet once the data is filled in Form1. The surplus closing clinker stock in 2009-10, with respect to clinker opening stock in base year (2007-08), has been considered for normalization as exported clinker. Similarly, the reduction in stock from the baseline has been considered as imported clinker and accordingly, it has been normalized as per the approved methodology. ii. Energy forImported Electricity Consumption Total energy for imported Electricity Consumption is to be calculated as:Total energy for Imported Electricity=[{(Total Imported Electricity from grid (Million kWh) X 860(kcal/kWh)}] [Million kcal]

iii. Notional/ Normalization energy for Imported electricity from Grid Notional Energy for imported electricity= [{Imported Electricity (Million kWh) x (3208 - 860) (kcal/kWh)}] [Million kcal] where: 3208 kcal/kWh is the weighted average heat rate of captive power plants in all DCs in cement sector. iv. Notional/ Normalization energy for grinding of exported Clinker It is calculated by using following formula: Notional Energy =[{Total Exported clinker to major product (Million ton) X Electrical SEC of cement grinding (kWh/ton of cement) X Weighted Average Heat Rate (kcal/kWh)}] [Million kcal] where: -Weighted Average Heat rate (kcal/kWh) = [{Imported Electricity (Million kWh) X 3208 (kcal/kWh)} + {DG generation (Million kWh) x DG heat rate (kcal/kWh)} + {Captive Power Plant Generation (Million kWh) x Captive Power plant heat rate(kcal/kWh)}] / [Imported Electricity (Million kWh) +DG generation (Million kWh)+Captive power plant generation (Million kWh)] v. Notional/ Normalization energy for clinkerization of imported Clinker It is calculated by using following formula: Notional Energy = Total Clinker imported (Million ton) x [(Thermal SEC of Clinkerization, kcal/kg clinker x 1000) +{Electrical SEC of Clinkerization (kWh/ton of clinker) x Weighted Average Heat Rate (kcal/kWh)}] [Million kcal] vi. Gate to Gate (GtG) Energy Consumption GtG Energy Consumption =b(i) +b(ii) +b(iii) +b(iv)+b(v) vii. Gate to Gate (GtG) Specific Energy Consumption [Million kcal]

Gate to Gate (GtG) Energy Consumption (Million kcal)

GtG SEC = Total Equivalent of Major Product of Cement (Million ton) X 1000

[ kcal/kg of equivalent cement]

Estimation of Gate to Gate (GtG) SEC

GtG SEC (kcal/kg major product cement)

Total GtG Energy Consumption with normalisation (kcal)

= --------------------------------------------Production of Equivalent Major Grade of Cement (kg)

Grouping of DCs
CEMENT PLANTS (85 DCs)

Based on Major Product

PPC (55)

OPC(16)

PSC (7)

White OPC (2) + Grinding(2) + Only clinker(1)

Wet Plant (2)

National Target of Energy Saving among all Sectors

Apportioned Annual No. of Share Energy Energy Identified Consumption Reduction For Consumption DCs (%) PAT Cycle-1 (Million toe) (Million toe)
144 67 85 10 29 31 90 22 478 104.56 25.32 15.01 7.71 8.20 2.09 1.20 0.88 164.97 63.38% 15.35% 9.10% 4.67% 4.97% 1.27% 0.73% 0.53% 100.00% 3.211 1.486 0.815 0.456 0.478 0.119 0.066 0.054 6.686

S.NO.

Sector

1 2 3 4 5 6 7 8

Power (Thermal) Iron & Steel Cement Aluminium Fertilizer Paper & Pulp Textile Chlor- Alkali Total

DRAFT ENERGY CONSUMPTION RANGE IN INDIAN CEMENT PLANTS (85 DCs) (2007-10)
Products/Process (No. of Plants) Thermal Energy Consumption (kcal/kg of clinker) Electric Energy Consumption (kWh/Tonne equivalent cement) Normalized Energy Consumption gtg (kcal/kg equivalent cement) Total Energy % Consumption Share of of SubSubSector Sector (toe) (%) 68.57% 21.95% 6.21% 0.70%

(Major Product) PPC (55 Plants) OPC (16 Plants) PSC (7 Plants) White Cement (2 Plants) Wet Cement Plants (2 Plants) Grinding Units (2 Plants) Only Clinkerization (1 Plant)

Minimum Maximum Minimum Maximum Minimum Maximum 658 727.33 701.02 1093.72 1074.02 1000.94 1207.71 1279.66 64.18 75.67 71.03 108.93 110.24 143.48 119.69 119.81 712.31 964.66 700.39 1452.23

1227.1 10292843.975 1368.43 968.17 1484.65 3295349.387 932008.497 105566.281

1026.67

1415.07

79.75

113.86

1241.4

1244.56

152403.633

1.02%

38.78 87.47

40.38

138.73 1257.22

201.05

88211.169 143790.367

0.59% 0.96%

869.33

Total 15010173.309 100.00%

Apportionment of Sub-Sector Target of Energy Saving in Cement Sector (Data pertains to 85 plants as DC)

S.No.

Sub Sector

NO. OF DCs

Avg. Energy Consumption Mkcal Million toe 10.293 3.295 0.932 0.106 0.152 0.088 0.144 15.010 % 68.57% 21.95% 6.21% 0.70% 1.02% 0.59% 0.96% 100.00%

Target Energy Reduction for PAT Cycle-1 Million toe toe

1 2 3 4 5 6 7

PPC OPC PSC White Wet Grinding Clinkerization Total

55 16 7 2 2 2 1 85

102928440 32953494 9320085 1055663 1524036 882112 1437904 150101733

0.559 558865.489 0.179 178925.965 0.051 0.006 0.008 0.005 0.008 50604.807 5731.880 8274.985 4789.558 7807.315

0.815 815000.000

Summary Sheet of Designated Consumer Cement Plant Details of information regarding Gate to Gate SEC, Target SEC and Target Energy saving for PAT Cycle -1 1 2 Name of the Unit The Sector to which unit falls ABC Plant Cement Sector India Unit Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne Lakh Tonne unit Fraction Fraction Fraction Million kcal Lakh kWh Lakh kWh Lakh kWh Million kcal unit Lakh Tonne Average of Period (2007-10) 11.02 13.64 2.65 10.99 0.00 0.33 0.09 0.19 0.52 0.09 0.97 0.73 0.00 1523498.01 1278.73 183.70 59.46 1523140.41 Average of Period (2007-10) 3.52

3
4 a

Complete Postal address of Plant

Details of Production Basis/Calculation Total Clinker Production Annual Production Total Combined Cement b Production Annual Production c Production of OPC Annual Production d Production of PPC Annual Production e Production of PSC Annual Production f Clinker Exported Annual g Clinker Imported Annual h Clinker Stock (Closing Clinker stock in 2010- Opening Clinker Stock in 2007)/3 i Total Clinker Exported (Clinker Exported + Clinker exported to clinker stock) j Total Clinker Imported (Clinker imported + Clinker Imported from clinker stock) 5 Conversion Factors (CF) for Clinker to various Cement grades a Clinker to OPC Clinker used for OPC Production/OPC Produced b Clinker to PPC Clinker used for PPC Production/PPC Produced c Clinker to PSC Clinker used for PSC Production/PSC Produced Total Thermal Energy 6 [Fuel Consumed (Lakh Tonne) X CGV of Fuel (Kcal/Kg)] X 100 Consumption {(Electricity Generated through CPP+Electricity generation through DG Set + Total Electricity consumed within Electricity generation through WHR+ Electricity Purchased from Grid) 7 the plant Electricity exported to Grid} 8 9 10 11 a Electricity Purchased from Grid Electricity Exported to Grid Total Energy Consumed (Thermal+Electrical) Average of year 2007-08, 2008-09 and 2009-10 Average of year 2007-08, 2008-09 and 2009-10 [Total Thermal Energy (Million kcal)+{(Total Electricity purchased from grid (Lakh kWh) X 860)-Electricity exported (Lakh kWh) X National Heat Rate 2717 kcal/kWh}/10] Equivalent major grade cement Production (OPC Produced X CF Of OPC)/CF of Major Product

OPC Production equivalent to major product PPC Production equivalent to b major product PSC/any other verity Cement Production equivalent to major c product Total Exported clinker to major d product Total Imported Clinker to major e product Total Equivalent major product of f Cement 12 Performance Indicators a Thermal SEC Electrical SEC (up to b Clinkerization) c Electrical SEC (Cement Grinding)

(PPC Produced X CF Of PPC)/CF of Major Product

(PSC Produced X CF Of PSC)/CF of Major Product

Lakh Tonne
Lakh Tonne

10.99
0.00 0.71 0.12 15.22 Average of Period (2007-10) 952.33 67.04 32.33

Total Exported Clinker/CF of Major Product Total Imported Clinker/CF of Major Product (11a)+(11b)+(11c)+(11d) Annual Annual Annual

Lakh Tonne Lakh Tonne Lakh Tonne unit kCal/kg Clinker kWh/Tonne Clinker kWh/Tonne Cement

13 Notional Energy Required for grinding of exported Clinker a Notional Energy Required for clinkerization of imported Clinker b

Calculation for Gate to Gate SEC {Major Product of Cement of Total exported clinker (Lakh Tonne) x Electrical SEC of cement grinding (kWh/Tonne of cement) x Weighted average Heat Rate (kcal/kWh)}/10

unit

Average of Period (2007-10)

Million kCal

9143.04

[Total Clinker imported (Lakh Tonne) x {Thermal SEC of Clinkerization kCal/kg clinker) x 1000+electrical SEC of clinkerization (kWh/Tonne of clinker)x Weighted average Heat Rate (kcal/kWh)}/10] Million kCal 10549.21

Notional Energy for Purchased Purchesed Electricity (sr.no.8) X {Weighted average heat rate of all dcs in Power cement sector( 3208 kcal/kWh) - 860}/10 Gate to Gate Energy Consumption (10)+(13a)+(13b)+(13c)

Million kCal

43133.82

Million kCal

1585966.48

Gate to Gate Specific Energy Consumption e 14 Reduction Specific Energy Consumption (SEC) Target

(13d)/{(11f)*100}

kcal/kg equivalent major cement product unit

1042.13

Target Estimation for PAT Cycle-1 From Summary Sheet of Cement Sector

PAT Cycle-1 5.8378

Target Specfic Energy Consumption for PAT cycle-I b Target Energy saving for PAT cycle-I Note:Weighted average heat rate of your plant 15

(13e) x {1- (14a)/100}

kcal/kg equivalent major cement product metric ton of oil equivalent (toe)

981.29

[{(13e) - (14b)} x (11f) x 10]

9258.56

[{Imported Electricity (Lakh kWh) X 3208 (kcal/kWh)} + {DG generation (lakh kWh) x DG heat rate (kcal/kWh)} +{Captive Power Plant Generation (lakh kWh) x Captive Power plant heat rate (kcal/kWh)}] / [Imported Electricity (Lakh kWh) +DG generation (Lakh kWh)+Captive power plant generation (Lakh kWh)]

kcal/kWh

3988.72

16

Note:Weighted average heat rate of all DCs in {Captive power plant generation (Lakh kWh) X Captive power plant Heat Cement Sector Rate (kcal/kWh)} / {Captive power plant generation (Lakh kWh)}

kcal/kWh

3208

Summary of Energy Saving targets for Cement Sector

1) Total Energy Consumption :-15.01 Million toe 2) No. of DC's as of date :- 85 3) Total reduction for cement sector:-0.815 Million toe 4) Reduction target for DC's varying from :i) 3.99% to 6.87% (for PPC as major Product) ii) 4.23% to 6.00% ( for OPC as major product) iii)3.71% to 5.13% ( for PSC as major product) iv) 5.01% to 5.12% (for white cement plants) v) 4.87% to 4.88% (for Wet Cement plants) vi) 4.10% to 5.94% ( for grinding plants)

CONCLUSION
Introduction of Perform, Achieve and Trade Scheme for Energy Intensive Industries improves energy efficiency and facilitates cost effectiveness by certifying energy saving that could be traded due to its market based mechanism. The 478 designated consumer plants offer an energy saving potential of 6,686,000 ton of oil equivalent/year(6.686 million toe/year) at the end of first phase of PAT Cycle (2012- 2015).

CONCLUSION
PAT is one of the most promising initiatives to achieve the goal by implementing Best Available Practices and Technologies in the identified sectors through economical viable projects. Broader implementation of sectoral crediting mechanisms could ensure that lowcarbon technologies are also used more widely, which in turn would encourage Indian industries to invest in these technologies.

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