Tuesday, 20 January 2015

Energy Audit - What Next?

Energy Audit - What Next?
(Updates of 01st August 2016 - below)

International Energy Agency (IEA) estimates that Energy Conservation and Energy Efficiency can alone result in more than 60% of CO2 Abatement by 2020.

Energy Efficiency IEA Chart
CO2 Abatement IEA Chart

As can be seen above Energy Efficiency sits on top of all other initiatives for CO2 abatement and thereby controlling global warming. Interestingly the investment required to achieve 60% of CO2 abatement during the period 2010-2020 is 70% of the total investment required for all the initiatives during the period.

Energy Audit is the first step towards Energy Conservation in an Industrial plant or a Commercial facility. In India Energy Audit, although quite popular with Industrial plants, is yet to take off in a very big way. Many Companies have realized the potential of energy saving in their plant and have also carried out energy audit. However one must realize that Energy Audit is only the first step in the direction of energy efficiency and energy conservation. The recommendations made as part of the energy audit have to be implemented to achieve the energy saving targets.

The energy saving recommendations may require little or no investment and in some cases high investments as well. The investments are then taken up by the plant in a phase-wise manner, which result in delayed energy saving for the plant. In fact some of the recommendations may never be taken up by the plant. This renders the entire energy audit exercise futile.

In addition to the technical expertise required for Energy Audit the need of the hour is to have mutually beneficial business models such as ESCO and RESCO. 
Energy Audit - ESCO Approach

In case of ESCO the service provider (Energy Audit Company) invests in the energy saving projects identified in the plant or commercial facility (Target Company). The benefits of the savings achieved are then shared by the service provider and the plant.

The benefits of this approach to a plant :

  1. Energy Audit enables to assess the true potential of energy saving in the plant. Typically this can range from 5% to 12% of Specific Energy Consumption (SEC).
  2. The service provider (Energy Audit Company) has the responsibility to identify truly feasible projects after mutual discussions and an in-depth analysis.
  3. The responsibility of service provider does not end with submission of energy audit report.
  4. Financing for the identified energy saving projects would also be undertaken by the service provider and hence no investment to be done by the plant once the energy audit is completed.
  5. The plant would start saving from the first day of implementation of project without investing in the project.
Updates of 01st Aug 2016
In addition to above mentioned benefits it is also prudent to note that Energy Efficiency and Energy Conservation is an ongoing exercise. This means fresh influx of investments are required from time to time.

In most of the cases any Industrial plant or manufacturing unit wishes to focus it's major resources - money, time and work-force - on it's core activities. For example a Steel plant would want to focus it's entire work force on quality, timely and cost-efficient way of manufacturing Steel. In such a 

[Other Popular Article : Energy Audit - Is it the right time for your plant?]

scenario a holistic approach by a dedicated Energy Saving company could reap results and benefits in the short to long term. While the Energy Saving Company resources work independently (under the leadership guidance of a Energy Manager) there are various improvement suggested over a period of time (as against a one-time Energy Audit activity) :
  1. Brainstorming sessions : Prepare a list of all identifiable Energy Saving opportunities - including the ones suggested by in-house team. Evaluate all the opportunities and come up with a final list of practically possible Energy Saving measures. This is supported by data.
  2. Expert Consultancy under ESCO : Visit by a process expert under ESCO model wherein the said Company does not pay for consultancy charges but the charges for consultancy are linked to actual energy saving achieved.
  3. Contemporary Solutions : As the approach is cyclical and ongoing in nature it ensures that the most contemporary solutions are being suggested and implemented in the plant.
  4. 360 Degree view : All the critical touch-points including all equipment, machinery, logistics (if applicable) from gate-to-gate are covered and explored for Energy Saving opportunities.

At Enerco Energy Solutions LLP we can not only offer Technical Consultancy but also Financial Consultancy and fund the Energy Saving Projects. There are various financing models including (but not limited to) -
  1. 100% investment in Energy Saving / Solar Power under ESCO / RESCO model.
  2. Low-cost Debt financing of Energy-related projects.
  3. Performance-linked financing of Energy-related projects etc.

If you wish to know more about how Enerco Energy Solutions LLP could assist you in bringing down your energy costs - under ESCO and RESCO (or other financing) models - please write into us on info@econserve.in .

28 comments:

  1. It is good to know about the initiatives taken by Enerco in this direction.

    Companies need to look beyond energy audit if true energy savings are to be achieved. Having said that, energy audit is a starting point and the implementation of the recommendations in the Energy Audit Report would result in actual savings.

    If you are company can take up energy saving projects on turnkey basis we are interested in taking this up at our steel plant. An enquiry for energy audit has already been sent to your mail id.

    Please revert at the earliest.

    ReplyDelete
    Replies
    1. Dear Mr. Chatterjee,

      We would like to thank you for your kind comments on our initiatives. It is our endeavor to offer Best-in-Class services in Energy Conservation and Solar Energy to our Customers.

      As rightly mentioned by you, Energy Audit followed by implementation of Energy saving recommendations is required to achieve the envisaged energy savings. Keeping this in mind we have introduced ESCO model for Energy Saving projects wherein we carry out 100% investment and turnkey execution of the recommendations we have identified in our Energy Audit. These projects could be on utilities or on process side as the case maybe. We are now coming up with our next post in this series which would be on the lines of why energy audits alone cannot help in energy saving.

      With regards to your enquiry, we would like to thank you for the same and are glad to inform you that we have B.E.E. accredited energy auditors, energy managers and engineers with a rich experience in Steel, Cement, Thermal Power Plants, Chemical, FMCG etc. along with process-side experts in India and overseas as well.

      Specifically in Steel we have domain experts from SID, Rolling Mill, Induction Furnace, Blast Furnace, Beneficiation, Pelletization, RMHS etc. We have received your enquiry and will send our quote for Energy Audit as soon as we can.

      Thanking you again.

      Delete
  2. Dear Sir / Madam,

    We are a Cement plant looking for Energy Audit + Energy Saving project on ESCO basis. We have downloaded the questionnaire and sent it to your mail id.

    Please confirm the following -
    1. If you are eligible to carry out Energy Audit as per PAT requirements?
    2. The energy saving projects identified would be funded 100% by your Company?
    3. Is Solar Energy included in 100% funding of these projects?
    4. Do you have past experience in Cement plants in Solar Energy and Energy Audit?

    Regards,
    Dev Kant

    ReplyDelete
    Replies
    1. Dear Sir,

      Thank you for your comment., we have received your mail enquiry also.

      Our responses inline to your queries -
      1. If you are eligible to carry out Energy Audit as per PAT requirements?
      Yes, PAT audit requires Energy Audit by an accredited Energy Auditor. Our team consists of B.E.E. Accredited Energy Auditors, Energy Managers and Engineers. Additionally we also have domain experts from various domains including Cement, Steel, Chemical, TPP etc.


      2. The energy saving projects identified would be funded 100% by your Company?
      Yes, the energy saving recommendations made in our Energy Audit Report would be implemented by us as well as funded 100% by us on ESCO basis. The benefit of savings would be shared between your Company and ours for a definite time-period which is mutually agreed.


      3. Is Solar Energy included in 100% funding of these projects?
      Yes, Solar Energy projects are executed and funded by us on BOOT or BOO basis. The Solar projects would be at your site (rooftop / ground) and the power supplied would be synchronized with your existing source of power.


      4. Do you have past experience in Cement plants in Solar Energy and Energy Audit?
      Yes, we have a rich experience in Energy Audit of Cement plants including Top 3 Cement manufacturers in India. Additionally we also possess a rich experience in Solar Consulting for several Cement plants across India. We have mailed you our profile with the details.

      Thank you again for your comment. We will send our offer to you within 48 hours.

      Best Regards,
      EESL

      Delete
  3. We have identified some Energy Saving opportunities and projects in our plant. Would you execute them on ESCO basis?

    ReplyDelete
    Replies
    1. Dear Sir,

      Thank you for your note. Generally we only execute and invest in the energy saving projects on ESCO basis, which we have identified during our Energy Audit.

      However we may consider some of the project which have a good payback. A clear case-study with existing PoC maybe sent for further Techno-Commercial review to us.

      The ideal way that we follow is as follows :

      Energy Audit -> Review Recommendations with Client -> Finalize and Take up projects -> Invest in these projects with ESCO agreement

      You may please send a mail to info [@] econserve [dot] in with your project details and we will see if they could be taken up by us.

      Regards,
      Enerco Energy Solutions LLP

      Delete
  4. Are your energy saving measures only for a particular area such as Electrical / Thermal / Process or is it generic?

    ReplyDelete
    Replies
    1. Hi,

      Our energy saving experts work across type of energy i.e. Electrical, Thermal, Process, Mechanical etc. Our team of B.E.E. accredited Energy Auditors and Energy managers consists of team from Electrical and Mechanical background with thermal experts on board as well.

      In fact we also have specific domain experts in Cement, Steel, Chemical, Thermal Power Plant etc. who work specifically on process side of things.

      The nature of energy saving measures that we identify could be on any or all type of energy saving which has the best payback period with little or no investment required. For the energy saving measures or projects requiring investments we can also fund and execute these projects on 100% ESCO basis.

      Please do let us know if your query is answered.

      Thank you again.

      Delete
  5. Hello,

    How much time does it take for you to take up these projects after Energy Audit Report is submitted? Will all projects be taken up on ESCO basis or a selected few ones?

    Thanks,
    SN Deshpande

    ReplyDelete
    Replies
    1. Dear Shree Deshpandeji,

      Thank you for your comment.

      Once the energy audit Report is submitted we discuss with the key plant people to shortlist the most attractive projects. This activity can take place immediately after the Report is submitted. Typically all the projects that we identify have a payback ranging from 1 month to 24 months.

      On finalization of the identified projects it could take anywhere between 3 to 4 weeks to initiate these projects.

      Yes, we could take up all the identified projects on ESCO basis. Generally we select the Energy Saving projects with clearly defined methodology for monitoring of energy savings - post implementation.

      The Solar Energy projects that we identify can be taken up immediately after receiving your approval for execution on BOOT basis i.e. 100% funding by us. The exercise of identifying Solar Energy projects can be taken up separately without Energy Audit as well.

      Please feel free to reply with any further queries.

      Regards,
      Enerco Energy Solutions LLP

      Delete
  6. Hi,

    When is a good time to go for this exercise eg. during full load of plant or during shut down etc.?

    Thanks !

    ReplyDelete
    Replies
    1. Dear Sir,

      Thank you for comment.

      Energy Audit is generally recommended during plant load conditions. It may depend on the site whether the plant is usually fully loaded or is partially loaded. To carry out the measurements we may need to operate some parts of the plant so as to undertake the measurements.

      In one of our cases a Client's plant was running at 75% of the load conditions for most of the time and hence only the running loads were considered for the audit.

      Please advise if you have any further queries and we will be happy to assist you.

      Thanks,
      EESL

      Delete
  7. This is an excellent measure undertaken by Enerco Energy.

    Your approach as against conventional energy audit will certainly be found useful by many manufacturing plants. As against the usual energy audit your approach is more about accountability even after the energy audit has been completed.

    I am retired NTPC official and would like to associate with Enerco.

    ReplyDelete
    Replies
    1. Dear Sir,

      Thank you very much for your kind words of encouragement.

      You have rightly mentioned that conventional energy audit, although a very good approach towards energy conservation and energy efficiency, is limited only till the energy audit Report is submitted. Perhaps this is the reason that some of the Industrial plants shy away from taking this exercise.

      Benefits of our approach :
      1. True Energy Saving are achieved as the solutions are implemented and not just recommended.
      2. We are accountable for end to end service and not just submission of Energy Audit Report.
      3. Since we undertake investment and execution of the recommendations on ESCO basis, the Client benefits from saving energy and money from the first day of implementation of the solutions.

      We are happy to have you as our associate. Please do contact us through our contact form to take this ahead.

      Many thanks,
      Enerco Energy Solutions LLP

      Delete
  8. Dear Sir,

    Do you do this only for manufacturing plants in India or even plants overseas can avail these benefits?

    Thanking you,
    Joseph M.

    ReplyDelete
    Replies
    1. Dear Mr. Joseph,

      Thank you for your comment and sorry for the delay in replying.

      We do this manufacturing and commercial facilities irrespective of the location i.e. India and overseas as well. In fact we are already in talks with some of the Companies in middle-East and South Africa for this.

      Kindly send your details to info@econserve.in to assist you further.

      Many thanks.

      Delete
  9. Dear Sir,

    We are planning for our Comprehensive Energy Audit of our Cement and Thermal Power Plant.

    Queries :
    1. Will you only undertake certain energy saving projects under ESCO or all identified projects?
    2. Will your team consist of domain experts, if any?
    3. What if we only wish to do Energy Audit and not financing? Would that change the fees?

    Thanking you,
    Prakash

    ReplyDelete
    Replies
    1. Dear Sir,

      Thank you for your comment.

      Please find our answers to your queries inline :
      1. Will you only undertake certain energy saving projects under ESCO or all identified projects?

      A : Generally all the projects we identify during energy audit have a payback in the range of IMMEDIATE to 18 months or in some cases 24 months. Based on the outcome of the audit we mutually decide with the Client team on the projects that could be undertaken on ESCO basis.


      2. Will your team consist of domain experts, if any?

      A: Yes, we have a panel of Cement, Steel, Chemical, Glass, TPP experts. Additional domain experts could be arranged based on the exact requirements.


      3. What if we only wish to do Energy Audit and not financing? Would that change the fees?

      A: The entire energy saving exercise is carried out in a phase-wise manner. The fees for 1st phase i.e. Energy Audit is independent of the 2nd phase i.e. Financing of Energy Saving project. This is because no fees are charged to you for the 2nd phase as our charges are linked to the savings achieved.

      Hope your queries are answered.

      For further queries you may directly write into us on info [at] econserve [dot] in.

      Many thanks !
      EESL

      Delete
  10. Hello,

    Any references in Thermal Power Plant and Steel Plant?

    Thanks,
    Pradeep

    ReplyDelete
    Replies
    1. Dear Sir,

      Thank you for your comment. We have various references in Integrated Steel plant, Beneficiation Plant, Pelletization, Rolling Mills, Furnaces etc. with reputed Clients in India and overseas as well.

      In TPP our experience ranges at various levels including 270 MW, 90 MW, 22 MW, 11 MW etc.

      Kindly email us so that we could share the references and Client testimonials who have appreciated our work.

      Thanks !

      Delete
  11. Dear Sir / Madam,

    Do you cover any Renewable Study as part of Energy Audit?

    Thanks,
    Hari

    ReplyDelete
    Replies
    1. Dear Sir,

      Yes we can include Renewable Energy Studies as part of Energy Audit or as a separate exercise altogether.

      This includes (but not limited to) :
      1. PV Solar Power
      2. Solar Thermal Energy
      3. Wind Power
      4. Biomass Thermal / Power
      5. Waste to Energy etc.

      We could also finance these projects based on their viability and careful selection.

      Regards,
      Rahul

      Delete
  12. We are a Designated Consumer covered as per B.E.E. guidelines to carry out Mandatory Energy Audit. Does the financing scheme also work for PAT Energy Audits? For eg. the projects identified as part of PAT Audit also be financed?

    Thanks !

    ReplyDelete
    Replies
    1. Thank you for taking time off to comment on our post - we sincerely appreciate it.

      Yes, PAT Energy Audit as per B.E.E. guidelines for Designated Consumers is done by us. In fact we are already working with designated consumers from Steel, Cement, Thermal Power Plant, Textile etc. and have domain and subject matter experts for the same.

      The energy saving projects identified as part of these audits are also financed by us.

      Please send us a detailed enquiry to info@econserve.in and we will be happy to assist you further.

      Thanks,
      Rahul

      Delete
  13. We conducted Energy Audit 3 years back and are planning for the same towards the end of the year. We are a 15 MTPA Cement + Power Plant. Do you think Energy Audit at this stage would bear fruits?

    Thanks,
    Anil Gawade

    ReplyDelete
    Replies
    1. Dear Sir,

      Energy Audit is a regular exercise and outcome depends on various factors including :
      1. Time since last Energy Audit
      2. Modifications since Energy Audit
      3. Industry Dynamics
      4. Evolving Technologies etc.

      Having said that, it is recommended to carry out Energy Audit once every 3-4 years, especially for Energy-intensive industries such as Cement, Steel, Thermal Power Plant, Chemical, Textile etc.

      In your case, we would recommend to go for Energy Audit if all of the recommendations of past audit have been undertaken and the plant has undergone modifications. With our rich experience we are confident of finding further energy saving opportunities - not the usual and easy-to-spot ones.

      Please feel free to revert with your feedback.

      Thanks,
      Rahul

      Delete
    2. Thank you Rahul !

      Could you help us with assessing if an Energy Audit would be useful / feasible for us at this stage?

      Thanks,
      Anil G.

      Delete
    3. Dear Sir,

      Yes, it would be our pleasure to advise if it is a good time for you to go for Energy Audit. Kindly email us on info@econserve.in and we will be happy to guide you on the next steps.

      Thanks & Regards,
      Rahul

      Delete