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Initiatives of energy conservation in Initiatives of energy conservation in IndiaIndia--Implementation of PAT schemeImplementation of PAT scheme

State level meeting with Designated Consumers-

7th February,2014

Cochin

Presentation by :

K.K.CHAKARVARTIBUREAU OF ENERGY EFFICIENCY

NEW DELHI

Cochin

Legislative and Institutional Framework Framework

2

INTRODUCTION

� India's rapid economic growth has made it one of the fastest

growing markets in the world.

� That has been translated into the expansion in its total

energy use for the past five decades.

� Presently India is fourth in the World in terms of its primary

energy consumption (523 million toe(2010-11), with 585energy consumption (523 million toe(2010-11), with 585

kgoe per capita against world average of 1012 kgoe) .

� But fossil fuel reserves are limited. Proven 34,000 million

ton Coal reserves may last 80-140 years, whereas 760

million ton of Oil reserves may last around 23 years .

3

INTRODUCTION

� Import dependence on oil is expected to increase from

76.0 % to 80% , natural gas from 19% to 28.4% and coal

from 19.8% to 22.1% during the period 2010-17 .

� This underscores the need for moderating the growth of

energy demand by achieving higher levels of energy

efficiency while also increasing domestic supplies of energyefficiency while also increasing domestic supplies of energy

as much as possible.

� Increased energy efficiency is the only way to contain

energy demand without jeopardizing growth and it therefore

receives high priority in India. The Indian Parliament passed

the Energy Conservation Act in 2001 to institutionalize

energy efficiency improvement mechanisms

4

THE INDIAN ENERGY CONSERVATION ACT

� The five major provisions of EC Act relate to:

� Designated Consumers (mainly energy intensive industries andbuildings) to comply with the specific energy consumption norms forthe manufactured products and services and establishment ofenergy management system,

� Standards and Labeling of energy consuming appliances, gadgetsand equipment to ensure promotion of energy efficiency of the newstocks entering the marketstocks entering the market

� Energy Conservation Building Code ensuring that newcommercial buildings constructed in the country have less electricityconsumption

� Creation of Institutional Set up (Bureau of Energy Efficiency at theFederal level and State Designated Agencies at the State level) foreffective coordination of the energy conservation efforts in thecountry and

� Establishment of Energy Conservation Fund at Centre and Statesto provide necessary financial support for energy efficiencyinitiatives in the country. 5

National Mission for Enhanced Energy Efficiency

(NMEEE)(NMEEE)

6

NMEEE – Four New Initiatives

• Perform Achieve and Trade (PAT) :

– Market based mechanism for energy intensive large industriesand facilities

– Enhance cost effectiveness of improvements in energy efficiency

– Certification of energy savings which could be traded

• Market Transformation for Energy Efficiency (MTEE):

– Shift to energy efficient appliances in designated sectors– Shift to energy efficient appliances in designated sectors

– Innovative measures to make products affordable

• Energy Efficiency Financing Platform (EEFP):

– Finance Demand Side Management Programme

– Capture future savings

• Framework for Energy Efficient Economic Development(FEEED):

– Developing fiscal instruments to promote energy efficiency

Framework for Energy Efficient Economic

Development (FEEED)

Fiscal instruments to facilitate energy efficiency projects implementation have been developed :

� PRGFEE :Debt guarantee to Financial Institutions for ESCO (Energy Service Companies) investments (up to Rs. 3.00 Crore or 50% of loan, whichever is less)

� VCFEE :Equity investments in ESCO projects (up to Rs.2.00 Crore or 15% of equity, whichever is less)

� Public Procurement :Public procurement of energy efficient appliances in the Public sector has been initiated. This is expected to save 250 MW of Power. Initially the appliances which have been considered for public procurement include Split air conditioners (usage more than 1000 hrs/year), ceiling

fans & water heaters (all 5 Stars) and frost free refrigerators ( 4 Stars)

Perform, Achieve & Trade (PAT) Mechanism

� Key Goal :

– Mandate specific Energy Efficiency improvement

– Most energy intensive industries

� Large variations in energy intensities of different units inalmost every sector

� Energy Intensity reduction target for each unit based on itscurrent efficiency

� Design based on extensive consultations over 2010-11 and2011-12

– Robust

– Simple

Relevant Variables for variation of Energy Performance

� Scale of Production

� Use of Raw Material

Reasons for Large Energy Usage Bandwidth

� Process Technology

� Vintage

� O & M Practices

� Type of Product Output

Number of Designated Consumers (DCs) as notifiedunder Indian Energy Conservation Act

Industry Sector Annual Energy Consumption Norm to

be DC (toe)

No. of Identified DCs

Aluminum 7500 10

Cement 30000 85Cement 30000 85

Chlor-Alkali 12000 22

Fertilizer 30000 29

Pulp & Paper 30000 31

Thermal Power 30000 144

Iron & Steel 30000 67

Textiles 3000 90

Designated Consumers- Kerala State

Sl No Designated Consumer

Net Heat Rate

(Kcal/KWh)-

Baseline

Net Product Output

(Million Units)-

Baseline

Net Heat Rate

(Kcal/KWh)-Target

1

Brahmapuram Diesel Power Plant

(BDPP)

Kochi

2115 175 2074

2BSES Kerala Power Project

Kochi1969 590 1965

3Kasargod Power Corporation Ltd

(KPCL)2265 69 2166

4Kozhikode Diesel Power Project

(KDPP)2150 350 2115

5

Rajiv Gandhi Combined Cycle

Project (NTPC)

Kayankulam

1994 2016 1988

Designated Consumers- Kerala State

Sl no Designated Consumer

Specific Energy

Consumption

(TOE/ton of

product)-Baseline

Product Output

(Ton)

Specific Energy

Consumption

(TOE/ton of

product)- Target

6Travancore Cochin Chemicals Ltd

Kochi0.299 50,430 0.282

7Hindustan Newsprint Ltd

0.660 1,08,221 0.6237Hindustan Newsprint Ltd

Kottayam0.660 1,08,221 0.623

8FACT (Ammonia)

Udyogamandal0.985 1,37,004 0.970

9Malabar Cements Limited,

Palakkad0.0971 12,10,539.37 0.0918

PAT Scheme : Background & Scope

• 478 Designated Consumers in 8 sectors

• DCs consume 165 TOE energy

• Targets to all DCs to achieve within a timeframe

– Achievement > Target → E-Scerts

– Achievement < Target → Purchase E-Scerts / Penalty

• E-Scerts tradable on special trading platforms• E-Scerts tradable on special trading platforms– Indian Energy Exchange– Power Exchange India

• National Target – 6.686 MTOE at the end of first cycle (2014-15)

• Reduction in energy cost US$ 1250 million

• Total energy efficiency projects planned in 2012-15 by industry covered under PAT : 2057Total expected investment : Rs. 17,021 Crores

National Target of Energy Saving among all Sectors

S.NO. Sector

No. of

Identified

DCs

Annual

Energy

Consumption

(Million toe)

Share

Consumption

(%)

Apportioned

Energy

Reduction For

PAT Cycle-1

(Million toe)

1Power

(Thermal) 144 104.56 63.38% 3.211

22 Iron & Steel 67 25.32 15.35% 1.486

3 Cement 85 15.01 9.10% 0.815

4 Aluminium 10 7.71 4.67% 0.456

5 Fertilizer 29 8.20 4.97% 0.478

6 Paper & Pulp 31 2.09 1.27% 0.119

7 Textile 90 1.20 0.73% 0.066

8 Chlor- Alkali 22 0.88 0.53% 0.054

Total 478 164.97 100.00% 6.686

Sectoral Share in Energy Saving Target (%)(2012-15)

16

Target Setting and

Energy SavingsEnergy Savings

17

Estimation of Energy Savings

� Base:

– Baseline Year : 2009-10

– Baseline Production (Pbase) : Avg. of 2007-8, 2008-9 & 2009-10

– Baseline SEC (SECbase) : Avg. of 2007-8, 2008-9 & – Baseline SEC (SECbase) : Avg. of 2007-8, 2008-9 & 2009-10

– Target SEC (SECtarget) : SEC as estimated in 2014-15

– Target : % reduction from SECbase

� Estimation of Energy Saving (TOE) :

P base ( SEC base – SEC target )

Target, Compliance,

ESCerts & Penalty- ExampleESCerts & Penalty- Example

19

SavingTarget

Baseline SEC

Achieved SEC

Compliance

Issued Escerts Penalty

Concept of Target, Compliance, ESCerts & Penalty

Target SEC

Scenario 1 Scenario 2

Compliance

Purchase Escerts

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)

Penalty for non-compliance

• Quantum of non compliance is deficiency inmeeting target at the end of the cycle

• Penalty is the energy cost of quantum of noncompliancecompliance

• Quantum of non compliance is provided inverification report and penalty is adjudicatedby the State Electricity Regulatory Commission

• Converted energy cost is Rs 10,154 per toe(2011-12) shall be periodically updated

Recommendation for issue of energy savings

certificates

• The Bureau on satisfying itself about thecorrectness of verification report, and check-verification report, wherever sought by it, send itsrecommendation to the Central Government, basedon the claim raised by the designated consumer inForm ‘A’, within ten working days from the last dateof submission of said Form ‘A’ by the concernedstate designated agency, for issuance of energysavings certificates.

Normalization Factors

24

Normalization Factors

• Capacity Utilization and PLF

Fluctuation due to Scheduling

• Effect due to Market Demand

• Non-availability of fuel or Raw Material

• Raw Material & Product

• Quality of Raw Material

• Output Product Change

• Production Semi-finished Product• Production Semi-finished Product

• Input Semi-finished Product

• Environmental Standards and Natural Disaster

• Change in Standards

• Change in Government policy

• Natural disaster

• Rioting or social unrest

PAT for Cement Sector

26

Indian Cement Industry

� 2nd largest in the world

� 6% of World’s Cement Production

� Coal as fuel and electricity

� Energy cost in some plants – 40% of total manufacturing cost

� State of the art plants have

– Thermal energy 698 Kcal/kg of clinker

– Electrical energy 65 kwh/Ton

� Specific Energy Consumption (SEC)� Specific Energy Consumption (SEC)

– Wide band variation

– Result of different Product mix based on additives such as :�Pozzolona�Slag�Fly Ash

� Conversion factors, best possible combination and categorizationworked out

� For setting targets units best in the group as reference

– Targets for others

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)

Coal (Indian)

(1,03,339 Tons/yr ,GCV 3438 kcal/kg)

Coal1 (Imported)

(6246 Tons/yr, GCV 5454 kcal/kg)

Furnace Oil


HSD

(570 Tons/yr , GCV 8600 kcal/litre)

Grid Electricity (53.08 Lakh KWh)

CPP(Heat Rate

3135 kcal/kWh)

GRID (Exported)(19.35 LAKH kWh/YR)

Example - Input & Output For A Typical Cement Plant

DG SET(Heat Rate

2212 kcal/kWh) 2.09 Lakh kWh

3148 lakh KWh

Colony, (5.1 Lakh kWh)

Crushing and

Mining

(Exported)(25.12 LAKH kWh/YR)

Pet Coke


Crushed Limestone

Iron Ore, Bauxite,Gypsum

Clinker (0.06 Lakh Tons/yr)

Coal2 (Imported)

124746 Tons/yr, GCV 6192 kcal/kg)

PPC (14.92LAKHTONNE/YR)

PSC /OTHER(2.30 LAKH TONNE/YR)

OPC(0.08 LAKH TONNE/YR)

Clinkerization

(Raw Material

Processing &

Pyro-processing)

Grinding

(VRM and

RP &BM)

Flyash, Slag, Etc

Colony, (5.1 Lakh kWh)

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

Normalization of Product Mix

Raw MaterialCement PlantCement Plant

Clinkering Unit

(Clinker Production)

Grinding UnitClinker + Gypsum+ additives* =

Cement (OPC/PPC/PSC/any

other Variety)

*(fly ash/Slag/any other unit)

Clinker Imported from

Other Unit

Clinker Exported to

Other Unit

Cement Dispatched

*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

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)**

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)Production of Equivalent Major Grade of Cement (kg)

Cement Sector

32

ENERGY CONSUMPTION RANGE IN INDIAN CEMENT PLANTS(85 DC’s) (2007-10)

Products/Process (No. of Plants)

Thermal Energy Consumption

(kcal/kg of clinker)

Electric Energy Consumption (kWh/Tonne

equivalent cement)

NormalizedEnergy Consumption gtg

(kcal/kg equivalent cement)

Total Energy Consumption of Sub-Sector

% Share of Sub-Sector

(Major Product) Minimum Maximum Minimum Maximum Minimum Maximum (toe) (%)

PPC (55 Plants)

698 1074.02 64.18 110.24 712.31 1227.1 10292843.975 68.57%

OPC (16 Plants)

727.33 1000.94 75.67 143.48 964.66 1368.43 3295349.387 21.95%

PSC (7 Plants)

701.02 1207.71 71.03 119.69 700.39 968.17 932008.497 6.21%

White Cement (2 Plants)

1093.72 1279.66 108.93 119.81 1452.23 1484.65 105566.281 0.70%

Wet Cement Plants(2 Plants)

1026.67 1415.07 79.75 113.86 1241.4 1244.56 152403.633 1.02%

Grinding Units(2 Plants)

38.78 40.38 138.73 201.05 88211.169 0.59%

Only Clinkerization (1Plant)

869.33 87.47 1257.22 143790.367 0.96%

Total 15010173.309 100.00%

Thermal Power Plant

2014Thermal Power Plant

Normalisation

Perform Achieve Trade2014

2014

Thermal Power Plant - PAT Cycle I

Total No of DCs -144

Threshold Limit:

30,000 tons of oil equivalent

Thermal Power Plants

[DC :144 Nos]

– 30,000 tons of oil equivalent

(TOE) per annum

Total Target Set

– 3.1 MTOE Coal/Lignite

[97] Gas [40]Diesel [7]

Target Setting in TPPs

Net Design Heat Rate

= Gross Design Heat Rate

1- APC% operative

Net Operative Heat Rate

= Gross Operative Heat Rate

1- APC% operative

Heat Rate Deviation (%)

= (Operating Heat Rate – Design Heat Rate) x 100

Design Heat Rate

Heat Rate Deviation

= (Operating Heat Rate – Design Heat Rate)

Parameter Unit Plant-1 Plant-2

Gross Heat

Rate (GHR)

kcal/kwh 2500 2500

Net Heat Rate Target

Deviation in Net

Station Heat Rate from

Design Net Heat Rate

Reduction Target for

Deviation in Net

Station Heat Rate (%)

Up to 5 % 10 %

Ex-NHR Calculation % Reduction Target for deviation in NHR

Rate (GHR)

Auxiliary

Power

Consumption

(APC)

% 8% 10%

NHR = GHR / (1- APC%)

Net Heat

Rate (NHR)

kcal/kwh 2717(= 2500/0.92)

2777(=2500/0.90)

More than 5% and Up

to 10 %

17 %

More than 10% and Up

to 20%

21 %

More Than 20 % 24 %

Normalisation

There are several factors such as Fuel Quality,

Scheduling, Fuel Unavailability etc. needs to be taken

into consideration in the assessment year, So that the

undue advantage or disadvantage could not beundue advantage or disadvantage could not be

imposed on DC while assessing the performance in

the target year 2014-15 as compared to the Baseline

year.

Normalisation FactorsBroad Categorization

• Fuel Quality [With Fuel linkage]

• Scheduling/ Backing Down

• Fuel Availability

APC linked with Unit Loading Factor• APC linked with Unit Loading Factor

• Environmental Concern

• Natural Disaster & Unforeseen Circumstances

Normalisation FactorsSr

No

Normaliza

tion

Group

Sub-Group Elements Reason/Requirement Impact Documents

Required

1 Input

Primary

Energy

[Fuel]

Fuel Quality • %H,

• % Moisture,

• %Ash

• GCV

Poor quality of Fuel effects

the Power Station

Performance

Boiler

Efficiency &

APC

Test Certificates

[Internal and

External]

Non Availability • Loss of Beyond Plant’s control Plant Load i. Documents Non Availability

of fuel (Coal,

Lignite, Natural

Gas) [External

Factor]

• Loss of

Generation

Beyond Plant’s control Plant Load

Factor

i. Documents

from Fuel

Supplying

company.

ii. Characteristics

curve of Load Vs

Design Turbine

Heat Rate from

OEM

Normalisation FactorsSr

No

Normaliz

ation

Group

Sub-Group Elements Reason/ Requirement Impact Documents Required

2 Plant

Load

Factor

Scheduling

[External

factor] or

Backing down

PLF & Station

Heat Rate

• Plant Load backing down

due to lower power

demand from the grid

Plant Load

Factor &

APC

i. Scheduling

Documents

ii. Reference

documents are

required for required for

deterioration in Plant

Load Factor

iii. Characteristics

curve [Load Vs

Turbine Heat Rate]

Unscheduled

Outage

[External

Factor]

PLF & Station

Heat Rate

• Transmission outages

resulting in reduced

power availability.

Plant Load

Factor

i. Scheduling

Documents

ii. Characteristics

curve [Load Vs

Turbine Heat Rate]

Sr No Normalizati

on Group

Sub-Group Elements Reason/Requirement Impact Documents Required

3 APC

Linked

with PLF

NHR Target assigned on Net

Heat Rate reduction

APC Aux. Energy

Consumption in Plant

(APC)

4 Environment

Standard

Additional

Equipment

Installation due to

Auxiliary Power

Consumption

The Energy will be

normalized for additional

Energy consumption. This

APC 1.The DC has to

maintain the documents

for additional

Normalisation Factors

Installation due to

Environmental lawEnergy consumption. This

is to be excluded from APC

for additional

installation of

Environmental

Equipment and Energy

Consumption

2. Document of

CPCB/SPCB

Sr No Normalizati

on Group

Sub-Group Elements Reason/Requirement Impact Documents

Required

5 Natural

Disaster

Flood, Earthquake

etc

Proper weightage could be

given in Heat Rate in terms

of capacity utilisation,

energy used for re-

establishment

Plant Load

Factor

The DC has to

maintain the

authentic

documents for

natural disasters


6 Fuel Mix Gas Based

Power Station

Use of different

fuel in same unit

Separate NHR for different

fuel used in the unit

Unit Heat Rate

and APC

1.Unit Heat Rate

for different fuel

from OEM

2. PG Test report

3.Fuel Quality

documentation

Loss of Plant Load FactorLoss of Plant Load Factor

Unit Load Factor

Variation in Unit Loading Factor (ULF) in assessment year may

take place from baseline year. This will have impact on Heat Rate

and APC

With the decrease in ULF due to any external reasons not

controlled by plant such as Scheduling, Fuel Availability,controlled by plant such as Scheduling, Fuel Availability,

Unforeseen circumstances etc. in the assessment year will affect

the heat rate

This effect will attract the Normalisation in assessment year w.r.t. the

baseline year

Method of Normalization

Operating Heat Rate

Target Heat Rate Reduction

Normalised Target Heat Rate Reduction

Target Heat RateNormalised Target Heat Rate Normalised

HR Reduction

Design Heat Rate

Normalised Design Heat Rate NormalisedHR Reduction

Normalisation Factors for decrease in ULF

� Non availability of fuel and schedule

Station operating at part load condition following factors to beconsidered:-

1. Design Heat Rate

2. Operating Heat Rate

� Fuel Mix for Gas Power Station� Fuel Mix for Gas Power Station

� Natural Disaster like Earth Quake, Flood etc

� External Factor: Labor Strike, Change in Government policy, Rioting or Social unrest

If a plant shuts down (reserve shutdown)due to above reasons, the energy consumed during shutdown/restart will not be considered for calculation [Proper documents to be provided]

Characteristics Curve (Load Vs Turbine Heat Rate)

Coal Based Thermal Power Plant Actual Curve

y = 0.001x2 - 2.054x + 2523.

R² = 0.999

2040

2060

2080

2100

2120

2140

Turbine Heat Rate BHEL 500 MW

Heat Rate

(kcal/kWh)

Ra

te k

cal/

kwh

Excel topology of actual curve

1940

1960

1980

2000

2020

2040

200 300 400 500 600

MW

He

at

Ra

te k

cal/

kwh

� The polynomial equation of the characteristics curve with accuracy R2=0.9991, will calculate

the heat rate on any load

� The Plant has to submit the documents related to weighted PLF w.r.t. no of hrs (Running

time in which the plant desires the Normalisation in loss of PLF influenced by external

factor)

Turbine Efficiency Vs PLF Normalisation Example for Unit I of Plant A

y = 0.017x2 - 6.597x + 2684.

R² = 0.997

2250

2300

2350

k

c

a

Load (MW) Vs Turbine Heat Rate (kcal/kWh)

210 MW Characteristics Curve Excel topology 210 MW Characteristics Curve

2000

2050

2100

2150

2200

0 50 100 150 200 250

a

l

/

k

W

h

Load (MW)

Turbine Heat Rate Vs Unit Load FactorNormalisation Example for Unit I of Plant X

• The Boiler Efficiency calculation needs to be done

separately for different units in a Power Station and

weighted average should be taken to arrive net station

heat rate

• The influence of external factor on the Unit Load Factor of • The influence of external factor on the Unit Load Factor of

each unit must be put into records and separate

calculation is to be done for separate units [Scheduling of

Station, Backing down of unit, unavailability of Fuel]

• Unit wise HBD or Curve to be considered

• In case of non-availability of HBD or Curve, data from the

similar Unit will be considered

Documents Required

• Characteristics Curve of Unit Turbine Heat Rate Vs Load from

Original Equipment Manufacturer (OEM) or Typical HBD at

different load indicating heat rate

• Design Boiler Efficiency Document from Original Equipment • Design Boiler Efficiency Document from Original Equipment

Manufacturer (OEM)

• Documents related to Scheduling/Outage due to external factor

• Documents related to non-availability of Fuel from Fuel

Supplier/ CEA reports/ SAP Data

APC Linked with PLFAPC Linked with PLF

APC Linked with PLFThe reduction in PLF due to unforeseen reason will be linked in theAuxiliary power consumption w.r.t. the % reduction in Turbine Heat Rate inAssessment year as per following example

Sr No Item Assessment

year

Assessment year-

Normalised APC

Calculation (during

low PLF period)

1 PLF 90% 80%

y = 0.001x2 - 2.054x + 2523.2080

2100

2120

2140

Turbine Heat Rate BHEL 500 MW

Heat Rate

(kcal/kWh)

Ra

te k

cal/

kwh

2 THR 1970 1995

3 % Decrease in

THR

1.27%

4 Actual APC 6.8% 6.9%

5 Normalised APC

6.90 x 1.27%

=0.0876%

(6.90-0.0876)

=6.81%

y = 0.001x2 - 2.054x + 2523.

R² = 0.999

1940

1960

1980

2000

2020

2040

2060

2080

200 300 400 500 600

MWH

ea

tR

ate

kca

l/kw

h

� If the plant is operating at very low PLF in the Assessment year, the Normalised APC should not be less than

the average assessment year APC

� If the plant is operating through out the year at low PLF due to unforeseen reason, the normalisation will take

place as per above calculation

APC Linked with ULF

• DCs to provide curve for APC Vs Unit Load based on the dataavailable with them on quarterly basis

• APC should not include the Colony/ Construction power

• The data will be randomly verified

Gas Power StationGas Power Station

Gas based Power station

� The design heat rate for Gas based Power station adjusted to

site ambient conditions/PG test value will be taken for

calculation

� It covers all the deviation factors related to the environmental � It covers all the deviation factors related to the environmental

condition

�Due to some unforeseen reasons, if plant is operating in Open

Cycle, separate documents should be maintained by the Plant

for baseline as well as for assessment year


Environmental Concern�Environmental Factors

� Increase in auxiliary power consumption due to change in environmental condition may be considered during target year

�Additional Energy due to Partial loading required for execution for environmental upgrade necessitated by Environmental lawenvironmental upgrade necessitated by Environmental law

Documents Required

1.The DC has to maintain the documents for additional installation of

Environmental Equipment

2. Document of CPCB/SPCB

Status of PAT in Pulp and Paper Sector

Structure of Indian Paper Industry

� The Indian paper industry has highly fragmented structure consisting

of small, medium and large sized paper mills having the capacities

ranging from 10 to 1150 tons per day.

� The industry employs wood, agro residues and recycled/waste paper

as the major raw material for manufacturing different varieties ofas the major raw material for manufacturing different varieties of

paper, paper board & newsprint

� the share in production of paper from recycled/waste paper, agro

residues and wood based raw materials is 47%, 22% and 31%

respectively

Structure of Indian Paper IndustryStructure of Indian Paper Industry

Wood Based

Agro Based

Wood9.0 million tons

Bagasse 5.2 million tons

Writing Printing

Grade

(38%)

Packaging Grade

3.9 million tons

5.42 million tons

2.36

0.77

million tons

0.07

0.73

3.16 million tons

(31%)

Agro Based

Recycled Fiber

Based 4.72 million tons

(47%)

5.2 million tons

Wheat straw 2.6 million tons

Waste Paper6.3 million tons

Packaging Grade

(54%)

Newsprint Grade

(8%)

5.42 million tons

0.79 million tons

1.5

0.0

0.81

3.15

0.72

2.23 million tons

(22%)

Number of Mills 759

Installed capacity, million tons 12.7

Operational capacity, million tons 11.4*

Capacity utilization, % ~ 90

Production of Paper, Paperboard & Newsprint, million tons/annum 10.11

Per Capita Consumption (kg) 9.3

Annual Turnover, Rs. Crores 30,000

Status of Indian Paper IndustryStatus of Indian Paper Industry

Annual Turnover, Rs. Crores 30,000

Contribution to Exchequer, Rs. Crores 3000

Employment Direct, million people 0.37

Indirect Employment, million people 1.2

Indian share in world’s production, % 2.6

Future production in 2025, million tonns 22

* 1.3 million tons capacity closed due to various reasons

Projected Demand & Supply of Paper, Paper Board & Projected Demand & Supply of Paper, Paper Board & Newsprint in India by 2025 (million tons)Newsprint in India by 2025 (million tons)

14.84

21.94

7.47

11.15

16.10

23.51

10.00

15.00

20.00

25.00

Mil

lio

n t

on

s

Estimated

6.80

10.117.47

0.991.85

3.37

5.66

0.380.61

1.29 2.32

0.00

5.00

10.00

Production Consumption Import Export

Mil

lio

n t

on

s

Industry Group Particulars Global Consumption

Levels

Current Industry Consumption

Wood based mills

Raw material, t/ t paper** 1.8 - 2.0 2.2 - 2.4

Power, kWh/t paper 1000 - 1100 1400-1500

Steam, t/ t paper 7 - 9 12 – 13

Water, m3/ t paper below 50 Upto 100

Agro Based mills

Raw material, t/ t paper NA 2.6 – 2.8

Power, kWh/t paper NA 1200 – 1400

Steam*, t/ t paper NA • 12- 14 (CR)

• 8-10 (NCR)

Water, m3/ t paper NA Upto 120

RCF based mills producing unbleached

Raw material, t/ t paper 1.1 1.1- 1.2

Power, kWh/t paper 500 450 – 550

Status of Energy Consumption in Pulp & Paper Industry

RCF based mills producing unbleached

grades

Power, kWh/t paper 500 450 – 550

Steam, t/ t paper 2.5 4 – 5

Water, m3/ t paper 5.0 – 7.5 Upto 30

RCF based mills producing bleached

grades

Raw material, t/ t paper 1.2 - 1.25 1.2 - 1.4

Power, kWh/t paper 600 - 650 680 – 800

Steam, t/ t paper 4.0 - 4.5 6.0 – 7.0

Water, m3/ t paper 10 -15 Upto 50

Source: Industry & Associations dataNA – industry data not available*Agro based mills are classified on the basis of conventional (CR) and non-conventional (NCR) chemical recovery methods.**Raw material is accounted for in Bone Dry weight.

Status of Designated Consumer of Indian Paper Sector (DCs) under

PATThreshold limit for

becoming a DC

30000 metric tons of oil equivalent

(MTOE) per annum

Total number of 31Total number of

identified DCs

31

Estimated Energy

Consumption

2.14Million TOE (MTOE) [1.27% of

total consumption]

Apportionment of National Target of Energy Saving among all Manufacturing Sectors

S.No. Sector No. of

Identified

DC’s

Reported

Energy

Consumption

Share of

Consumption

Apportioned

Energy

Reduction

(MTOE) (%) (MTOE)

1 Iron and Steel 80 28.00 46.66 % 1.647

2 Cement 65 11.87 19.78 % 0.698

3 Fertilizers 28 7.86 13.10 % 0.4623 Fertilizers 28 7.86 13.10 % 0.462

4 Aluminium 10 7.73 12.88 % 0.455

5 Paper and Pulp 31 2.09 3.48 % 0.123

6 Textile 85 1.62 2.70 % 0.095

7 Chlor- Alkali 18 0.84 1.40 % 0.049

8 Power Available in the Gazette

Grouping of Pulp & Paper Sector DCs

To arrive at a logical and acceptable spread of SECs amongthe DCs which may be compared in target setting approach,DCs were suitably grouped based on similar characteristics.

Grouping based on similarity in Input raw material and

product output.

- The input raw material are Wood, Agro and Recycled Fibre

(RCF)

- The process output are Chemical Pulping, Chemi-

mechanical Pulping and 100% market pulp processing.

- The product output is of Speciality Paper, Non-Speciality

Paper and Newsprint

PULP AND PAPER SECTOR

(31 DCs )

WOOD

(20 DCs)

AGRO

(6 DCs)

RCF

(5 DC)

Grouping of DCs

Chemical

(18 DCs)

Chemi-

Mechanical

(1 DCs)

100% Market Pulp

(1 DCs)

Speciality Paper

(1 DCs)Non- Speciality Paper

(17 DCs)

Chemi-

Mechanical

(3 DCs)

Chemical

(2 DCs)

Apportionment of Sub- Sector Target of Energy Saving in Pulp and Paper Sector

Sub Group MkCal MTOE % Target

Wood

Chemical Pulp +NSP

Chemical Pulp +SP

Chemi- Mechanical Pulp

100% Market Pulp

16902215

15423407

392357

712488

373963

1690221

1542341

39236

71249

37396

78.7 96828

88357

2248

4082

2142100% Market Pulp 373963 37396 2142

RCF

Newsprint

Non- Newsprint

2174517

1667661

506856

217452

166766.1

50685.59

10.1 12457

9554

2904

Agro 2393991 239399.1 11.2 13715

TOTAL 21470723 2147072 100.0 123000.0

Plant GTG SEC, (TOE/MT) Target SEC

(TOE/MT) %

1 BILT Graphic Paper Products Limited 0.215 0.203 5.37

2 ITC Limited- PSPD, Unit Bhadrachalam 0.457 0.443 3.09

3 Tamil Nadu Newsprint and Papers Limited 0.572 0.550 3.87

4 Century Pulp and Paper 0.591 0.568 4.00

5 JK Paper Limited TAPI 0.601 0.576 4.07

6 BILT Graphic Paper products Limited 0.609 0.584 4.12

7 Star Paper Mills Limited 0.639 0.609 4.31

8 The Andhra Pradesh Paper Mills Limited 0.655 0.626 4.43

9 The West Coast Paper Mills Limited 0.657 0.627 4.44

10 Seshasayee Paper and Boards Limited 0.684 0.652 4.63

11 JK Paper Mills Rayagada 0.736 0.699 4.98

12 Ballarpur Industries Limited, Unit Sewa 0.924 0.866 6.25

13 Mysore Paper Mills Limited 0.934 0.875 6.32

14 Ballarpur Industries Limited 0.960 0.898 6.49

15 Nagaon Paper Mill, Jagiroad 1.024 0.953 6.93

Mill wise Target SEC in Pulp & Paper

15 Nagaon Paper Mill, Jagiroad 1.024 0.953 6.93

16 Cachar Paper Mill, Panchgram 1.129 1.043 7.64

17 The Sirpur Paper Mills Limited 1.209 1.110 8.18

18 Orient Paper Mill, Amlai 1.329 1.210 8.99

19 ITC, Limited,Unit Tribeni 1.570 1.481 5.68

20 Hindustan Newsprint Limited 0.660 0.622 5.78

21 Emami Paper Mills Limited 0.555 0.528 4.84

22 Rama Newsprint and Papers Limited 0.616 0.583 5.38

23 NEPA Limited 0.861 0.796 7.50

24 ITC Limited Kovoi 0.348 0.341 1.95

25 Shri Bhawani Paper Mills Limited 1.402 1.292 7.86

26 ABC Paper Limited 0.498 0.479 3.79

27 Shakumbhri Straw Products Limited 0.518 0.498 3.94

28 Shree Shyam Pulp and Board Mills Limited 0.557 0.533 4.24

29 Delta paper Mills Limited 0.735 0.694 5.59

30 Abhishek Industries Limited 0.874 0.816 6.65

31 Satia Industries Limited 0.942 0.874 7.16

Suggestions to Achieve the PAT Targets

• Prepare a Roadmap for achieving the targets by stream lining the

organizational EMS.

– Setup effective monitoring system in the organization

– Form a dedicated Execution Team

– Assess Energy Performance at Process Level

– Estimate Potential for improvement

– Set goals – Determine Roles & Resources

– Implement Action Plan – Phase wise

– Evaluate progress

– Measure results and review action plan

• Explore possibility of ESCO route to implement EE projects

• Provide details of raw materials (purchased pulp), products (salable pulp,

grades of papers and gsm variation) and energy inputs (quality of coal etc) to

DENA during baseline energy audits.

• Identify in-house generated fuels (black liquor, chipper dust, ETP sludge etc.)

for subtraction from SEC calculation of GTG concept.

• Mills should carryout internal exercise to evaluate their industry specific • Mills should carryout internal exercise to evaluate their industry specific

“Normalization Factors” by collection of data on different grades produced,

gsm variation annually and its impact on steam and power consumption.

Any correlation between the product variation and energy consumption may

be useful to normalise the SEC calculation for a mill.

Conclusions

72

CONCLUSIONSCONCLUSIONS

• Energy Savings Potential :

Introduction of Perform, Achieve and Trade (PAT)Scheme for Energy Intensive Industries

– improves energy efficiency

– facilitates cost effectiveness by certifying energysaving that could be traded due to its market basedmechanismmechanism

• Benefits : At the end of first phase of PAT Cycle

(2012- 2015)

– Energy saving potential of 6.686 million toe for 478Designated Consumers

– Reduction in India’s CO2 emissions

• 24 million tons per year in 2014-15

CONCLUSIONS (contd…)CONCLUSIONS (contd…)

� Faster Adoption of Low Carbon Technology:PAT is one of the most promising initiatives to achieve the above goal

� Implementation of Best Available � Implementation of Best Available Practices and Technologies in the identified sectors

� Economically viable projects

� Innovative Model