Energy Champions for Excellence in Plant Management

8/10/2019 Energy Champions for Excellence in Plant Management

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Energy Champions for Excellence in Plant Management

-YP Chawla

Abstract: The triple bottom line for business excellence gets derived from

excellence in Plant Management. Enhancing Output with reduced inputs to

improve the topline and bottom line will have many strategies of which one is

cost of energy inputs in energy intensive core industry like Steel, Cement, and

Fertilizer etc.

This paper deals with reducing cost of Energy inputs on the non-manufacturing

processes where Energy Champions can play a role. The Energy audit and

energy saving in Manufacturing Processes is considered authentic with inputs

from certified Energy Managers. Each of us can be an Energy Champion, without

any formal examination like Energy Managers, by contributing towards saving ofconventional Energy at Plant even in Non- Manufacturing process.

Tags: Energy Managers, Energy Champions, LED Bulbs, Efficient illumination,

Financials of LED Projects , CSR, Bharat Swatch Yojna

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1.A triple bottom line measuresi. the company's economic value;

ii.

"peoples account"- measuring thecompany's degree of social

responsibility

and

iii. the company's "planet account" -

which measures the company's

environmental responsibility.

Some argue that the companies should prepare three bottom lines the triple

bottom lineinstead of focusing solely on its finances/ Profit , thereby giving

consideration to the company's social, economic and environmental

impact. This also is called "TBL," "3BL," "People, Planet, Profit"

A challenge with the triple bottom line is that it is difficult to compare the

people and planet accounts in terms of cash the way the profit account is

measured. As such, the three separate accounts cannot be added or

combined, and must be considered separately.


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3School Toilet

Pure Drinking Water

Industry claims an accelerated depreciated @ 80 % of Capital Cost and 80% of

the balance in next year(s).

4. Way Forward in Solar Roof Top

For Industry:1 Statutory inspection in respect of Safety & electric by Regional Electricity

Inspectoral Organization Kolkata as per Central Electricity Authority (CEA)regulations 2010 is required.

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Shaving off the units of power consumed at least during sunny daysthrough Solar Roof Top. The battery stored power can be used duringnight, but economics will not work in large Industrial Plant and specificallyhaving captive power plant.

For Individuals3

Draft Solar Policy of Electricity Regulatory Commission to be gazette

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Deciding tariff for Grid fed electricity5 Open access for transmission with in the same state / same transmission

company within the state6 Renewable Energy Certificates (REC) can be decided based on Average

pooled power cost. Odisha Renewable Energy Development Authority(OREDA) will accredit the plant in case of RECs. OREDA will advise in anycase support a project.

Solar Power has found its applications in CSR / Rural Development / AdarshGram Yojna. A Reverse Osmosis (RO) System for Water purification systemalong with Solar Water pumping and using the waste water from RO for wash

rooms is what a village is looking for along with Solar Street lights and Mobilecharging station.

5. CSR (adopt a Village) -Water Distribution arrangement with Solar

Pumping & Solar RO


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6. Efficient

Lighting

Systems

Using energyefficient lightingbecomes demandside management ofelectric power(DSM)

LED bulbs are rapidly expanding in household use, Industrial and Commercialapplications. Energy saving qualified LEDs use only about 20%-25% of theenergy and last up to 25 times longer than traditional incandescent bulbs. These

come in a variety of colors, and some are dimmable or offer convenient featuressuch as daylight and motion sensors. LEDs blue light has earned a Noble prizein 2014. A comparison of light consumption is as at

Figure 1 Lighting Lumens meeting the Triple Bottom Line


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Figure 2 Financials of Pudducherry Project , replacing the CFL & Incandescent with LEDs

A tentative business model as in Fig 2 of replacing 60 W incandescent lampswith LED lamps each of 7 Watts (735000 nos.) at residences in Puducherry as awhole union territory with 3.5 hrs of daily usage for 300 days saves 40.90 Mn.Kwhrs . Adding for Transmission & distribution losses 12.5% & pool losses4.37%.

The capital cost of project for bringing in LED lamps 735000 nos.@ Rs 310/-worked out to Rs 22.78 Crs.( 30: 70- Equity Debt) is claimed over a span of 7Years by sharing the energy saved cost. The project is monitored & verified byBureau of Energy Efficiency.

Cost Benefit analysis of the Energy Saving Project by the Distribution Co.

Sl Description Rs Cr

1. Total investment made by Energy Saving Service Company.ESCO

22.785

2. Total Payout to be made by Electricity DepartmentPuducherry to ESCO during the project period of ten yearsincluding O&M charges, (excluding Income Tax).

46.41

3. Total Financial Savings deemed to accrue to ElectricityDepartment Puducherry in next ten years by saving energysold at subsidized rate

75.665

4. Net savings to Electricity Department Puducherry over 10years period

29.25(approx)


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The above proposals do not require an Energy Manager. Anyone in the plant canget this executed and be an Energy Champion.

This success story is now carried over by Chhattisgarh State as a whole. It hasbeen running at Apollo Tyres Chennai Plant also.

7. Some Inputs for Energy Managers: ORC on an Electric Arc Furnace

begins commercial operation

Turboden, a group company of Mitsubishi Heavy Industries Ltd. (MHI), and in the

production of Organic Rankine Cycle (ORC) turbo-generators for distributed

power generation, implemented the ORC-based heat recovery plant on an

Electric Arc Furnace (EAF) in the world. The new 3 MW electrical output ORC

unit exploits a portion of the saturated steam produced and recovers heat from

the exhaust gases downstream an EAF at Elbe-Stahlwerke Feralpi GmbH (ESF),

an iron and steel manufacturer located in Riesa, Germany.

The heat recovery system started about a year back and is connected to the off-

gas treatment system of the melting electric furnace. The recovered energy

reduces net power consumption, allowing significantCO2 reduction.

In addition to electricity production, the remaining portion of the steam is fed into

the Riesa Municipal steam supply system and used in a nearby tire factory

production process.These types of generation plants allow reduction of industrial energy

consumption and emissions containment through heat recovery from unexploited

residual heat streams and exhaust gases in production processes and power

plants

This technology can be best applied in energy-intensive industries such as glass,

cement, aluminum, iron & steel, where production processes typically generate

exhaust gases above 250C.

These new plants not only provide advantages in terms of environmental

sustainability, emissions reduction, increased industrial process efficiency and

improved business performance, but they also represent opportunities for

increased competitiveness.
http://www.pennenergy.com/topics/reduced-carbon-dioxide-emissions.htmhttp://www.pennenergy.com/topics/reduced-carbon-dioxide-emissions.htm


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8. Summary:

i. Energy Champion: Any one can take on the role of saving energyirrespective of profession, age or gender and be an Energy Champion. TheEnergy saving is not the responsibility of Energy Managers and to be acertified Energy Manager can take up the qualifying examination only aftercertain experience and add excellence to Plant Management and improvingon 3 BL.

ii. Solar: Application ofGreen Energy generation through Solar Roof Top can bewell undertaken on large Industry roofs like that of a Steel Plant or a mid-sizefactory or even domestic roof tops. The application of solar roof topneeds anurgent action which reduces Electricity bill thus adding excellence to PlantManagement with positive impact on the Planet.

iii. Corporate Social Responsibility (CSR): A concept of adopting a village,

providing Solar Street Lights, Solar Operated Water Pumping set with storagesystem, Solar Operated Reverse Osmosis (RO) for drinking water and

Wastes from RO to be used for Toilets. This meets the requirements ofadopting a village, arranging safe drinking water for villagers; Clean Toilets,Lighting system etc. can be considered a good option under Corporate SocialResponsibility project, thereby improving the Social value to the PlantManagement and improving on 3 BL.

iv. Efficient Lighting: Replacing existing lighting system with energy efficientwith LEDs and going in for Energy Saving Service Company (ESCO) withESCO investing on sharing out of electricity bill saving is a good option. Thisis also and thus adding excellence to Plant Management improving thebottom line and also saving the planet.

v.

Energy Managers Role: On Waste heat recovery projects with cost benefitbasis can be taken on by a qualified Energy Manager and Energy Championtakes on the listed activities at ii to iv above and contributing to triple bottomline.Brief Profile of the Author:Y P Chawla; Advisor, Joint Electricity Regulatory Commission, NationalJt. Secretary Indian Institution of Plant Engineers (IIPE),and a Research Scholar ( Power Sector Vocational Education)[email protected];98107-08707

BE Tech. & MBA (Fin), PGDPM & PGDMM from Delhi University. ExportMgmt. from Oxford. Pursuing PhD. in Skill Gaps in Power Sector, Over 4decades of Experience in diversified sectors covering Energy including Solar& other Renewable Energy, (Ex. BHEL), Water Sector, Tyre Manufacturing,setting up Skill Center, Agriculture, and Infrastructure.

Widely travelled in India & abroad including some Foreign Postings. Becauseof these postings got opportunities to get a holistic approach of Power Sector.Have written papers on wide range of subjects (available on web)
mailto:[email protected]:[email protected]

Energy Champions for Excellence in Plant Management

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