Target Setting Methodology in Perform, Achieve & Trade (PAT

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Target Setting Methodology in Perform, Achieve
Trade (PAT) Mechanism
A.K.ASTHANA Technical Expert German Technical
Co-operation (GTZ) Bureau of Energy Efficiency
(BEE)
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NATIONAL MISSION ON ENHANCED ENERGY EFFICIENCY
(NMEEE)

• The National Action Plan on Climate Change was
  released by Honorable Prime Minister of India in
  June 2008
• The Action Plan Outlines 8 Missions including
  National Mission on Enhanced Energy Efficiency
  (NMEEE)

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NMEEE. 4 new initiatives

• The market based mechanism to enhance cost
  effectiveness of improvements in EE in energy
  intensive industries through certification of
  energy saving which can be traded.
  (Perform, Achieve Trade)
• Accelerating the shift to energy efficient
  appliances in designated sectors through
  innovative measures to make the product more
  affordable
• Creation of a mechanism that would help finance
  DSM programs in all sectors by capturing future
  energy saving
• Developing fiscal instruments to promote energy
  efficiency

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Estimated Consumption in DCs
About 55 of DCs Contribute 96 of Total
Consumption
About 45 of DCs contribute rest 4 of Total
Consumption
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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 of Technology
• - O M Practices
• - Type of Product Output etc.

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Sectoral studies by BEE on Setting Up of
Sectoral Bandwidth for DCs have revealed the
impact on SEC due to above diversities
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THE PAT SCHEME .. Approach
INDUSTRY (DC)
Review of Present Energy Scenario Bandwidth
(Completed)
Development of Baseline Formats with System
Boundaries Data Collection, Compilation
Analysis Verification of Data
Establish Baseline
Set Targets for SEC Reduction
Technology Transfer, EE Technology, RM,
RD Verification Protocol
Achieve the Target
Trade the higher achieved saving through E-Certs
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Analytical Approach for Target Setting
Setting Up of Unit Level Targets
National Level / Sector Level / Unit Level
targets
Analytical Approach
Establish Baseline SEC of Each Unit/Plant
Energy Efficiency Enhancement Option
Potential Saving, Cost Benefit etc
Reported SEC Normalized SEC Baseline SEC
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Defining Boundary Baseline
1. Matrix Formation of the Sector Capturing
the Parameters

• Consistency in Boundary Setting for Plants
• Raw Material consistency
• Out-Put Product Consistency
• Capturing all Energy Sources

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Normalized SEC Spread Analysis
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Unit Level Baseline SEC

• Identification of Critical Parameters
• Assigning Weights to Critical Parameters
• Establishment of Mathematical Relation for
  Baseline SEC determination
• Baseline SEC f ( Critical Parameters,
  Normalized SEC)
• Dividing SEC bandwidth into groups / clusters

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Approach for Setting Targets Depends upon the
Objective of the Scheme

• Total Saving Objective 10 mMTOE
• Setting Sector Targets based on total
  conservation potential of Industries and Program
  Objectives

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Number of Clusters depend upon the Bandwidth of
Baseline SEC
Cluster 2
Cluster 1
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Development of Enhancement options for Each
Sector

• Identifying EE enhancement options for each
  Sector
• Present day technology
• Emerging Technology
• Speculative Technologies proven in developed
  countries
• Potential Saving calculation associated for each
  option
• Cost Analysis of each option
• Life Cycle Cost, Capital Cost etc.

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Translating Sectoral Targets to Plant Level
Benchmark Approach
Poor Performing Higher Targets
Avg. Performing Moderate Targets
Fix a targeted benchmark cluster wise Estimate
Potential savings such that sectoral saving
target is met Set Plant level targets
Good Performing Low Targets
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Example . (Aluminum Smelter)
5 Smelters consuming 1.4 mMtoe of Energy per
annum After apropertionment adjustment,
smelter to reduce the energy consumption to 1.216
mMtoe to meet the National objective ( 13.14
reduction) Target of Saving 0.184 mMtoe
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13.5
12.0
11.6
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Target Setting in Thermal Power Plant
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Power Plants have Focused in
Reduction in APC
Improvement in HR
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Example of Heat Rate Deviation in Power Station
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Target Setting of Power Plant Would depend upon
Parameters Like ..

• Net Heat Rate (NHR)

• Quality of Coal
• GCV (Kcal/Kg) Ash Content ()

• Plant Load Factor (PLF) ()

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Target Setting for Power Station
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CEMENT SECTOR
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Cement Industry Some Energy Fact File !
Major Energy Source Coal and Electricity
Energy Cost About 20-40 of total
Manufacturing cost
Energy Consumption About 14.47 MtoE in 2007-8
No. of DCs 127 as on 2008-09 (with more than
30000 mtoe p.a)
SEC (Thermal) 665 995 kCal/kg of Clinker
SEC (Electrical) 66 - 127 kWh/Ton of Cement
Major Energy Consuming Area Clinker
Production (about 80 of total)
Source Energy Guidebook, PCRA TEDY, 2007
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Bandwidth of SEC (Elect)
Source NECA
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Bandwidth of SEC (Thermal)
Source NECA
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System Boundaries for Cement Manufacturing
Increase in PPC production from 22.6 in
1999-2000 to 60.1 in 2006-07
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• Thanks .