(Updates of 01st August 2016 - below)
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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.
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 :
- 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).
- The service provider (Energy Audit Company) has the responsibility to identify truly feasible projects after mutual discussions and an in-depth analysis.
- The responsibility of service provider does not end with submission of energy audit report.
- 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.
- The plant would start saving from the first day of implementation of project without investing in the project.
[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) :
- 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.
- 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.
- 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.
- 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.
- 100% investment in Energy Saving / Solar Power under ESCO / RESCO model.
- Low-cost Debt financing of Energy-related projects.
- Performance-linked financing of Energy-related projects etc.