Overview of Energy Efficiency Trend in Industry Sector (Cement , Iron & Steel and Power Plant)

1. Overview of Energy Efficiency Trend in Industry Sector(Cement , Iron & Steel and Power Plant) S.P.Garnaik Joint Director Resource Conservation & Management Division FICCI, New Delhi

2. Sectoral Energy Consumption v/s Contribution to the country’s GDP Source : Energy Conservation Guide, PCRA

3. Reasons for Change in Energy Usage Pattern • Change in Technology • Retrofit Options • - In-House R&D • -Adoption of EE Techniques • -Fuel Shift Increase Competitiveness • EC Act 2001 • Energy Audits • - Separate EC Cell • -NAPCC (NMEEE) Regulatory Compulsion • More Publicity thru • various media • Concept of CB options • - NECA • -Rigorous Activities by • various agencies Increase Awareness About EC

4. CEMENT SECTOR

5. Source: CMA 148 Major Plants (219.17 mnT) & 11 Mini Plants (11.10 mnT) Turnover = About 18,500 mn US $ in 2008 India is 2nd Largest Producer of Cement (6% of world) after China Annual Per Capita Consumption = About 150 kg

6. 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 : 104 as on 2008-09 (with more than 30000 mtoe p.a) SEC : 3.0 – 3.4 GJ/Ton (World Benchmark 2.9 – 3.0 GJ/Ton) 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

7. Bandwidth of SEC (Elect) Source : NECA

8. Bandwidth of SEC (Thermal) Source : NECA

9. Trend of SEC (Elect.) of Cement Industries(KWH/ton) Data of 38 major industries having Dry-Process Technology Source : TERI Data of 28 major industries having Dry-Process Technology Source : BEE SEC has reduced by about 1.7% per year

10. Trend of SEC (Thermal) of Cement Industries(Kcal/kg of Clinker) Best SEC : 688.7 SEC has reduced by about 1.7% per year SEC has reduced by about 0.3% per year

11. Major Energy Saving Initiatives… NCB energy audit studies carried out in 36 Cement Plants during last five years indicated potential savings ranging from 4 to 210 kcal/kg clinker and 0.78 to 27 kWh/tonne cement. Various Activities: Comprehensive Energy Audits through CEAs Formation of Energy Conservation Cell Adoption in Energy Efficient Technologies - Waste Heat Recovery - Co-Generation options - Use of VRM in place of conventional ball mills, external re-circulation system for VRMs, high-efficiency separators in grinding circuits etc. - Installation of pre-calcinators and five or six stage pre-heaters with low pressure drop cyclones, use of new generation coolers etc. - Use of VFDs / VSDs Participation in NECA

12. THERMAL POWER PLANT

13. Existing Generating Capacity- March 2008 Sector wise break-up (MW) Fuel wise break-up (MW) (Excluding captive capacity of 14636 MW connected to grid) (All figures provisional from CEA) Total generation in 2007-08 – 704.45 BU

14. Energy Shortage 9.8% 9.6% 8.3% 7.3% 7.1% 8.8% 7.5% 7.8% DURING 2007-08, PEAKING SHORTAGES WERE 16.6%

15. PLF at Different Years

16. Per capita Consumption remains low In 2006 NATIONAL ELECTRICITY POLICY TARGETS PER CAPITA AVAILABILITY OF 1000 KWH BY 2012 Figures in kwh Source: UNDP Human Development Report 2007-08 – Data for 2004

17. Power Plants have Focused in Reduction in APC (from 10% to 7%) Improvement in HR (improved by 12%)

18. Indian scenario: Design Heat rate *Above are best design values – design rates of individual unit varies based on reference ambient, coal quality, design and supply dates

19. Heatrate Improvement over the Years

20. Major Initiatives ….. • Supercritical Units of 660 MW Rating under construction • Supercritical Units of 800 MW Rating with higher steam temperature conditions under consideration

21. Initiatives for Energy Efficiency • Introduction of Supercritical Technology • Ultra mega power projects (UMPP) of about 4000MW capacity each • Renovation & Modernization of old thermal power stations • Retirement of older small size units • Incentive awards for Efficiency improvement • Improvement in Performance Parameter Monitoring • Comprehensive Energy Audits • Setting-Up of Norms for Energy Usage

22. Emphasis on plant load factor instead of efficient generation. Degradation of equipment resulting in loss of capacity. Delayed overhauls (Seasonal Constraints) Financial and procedural constraints lead to inadequate maintenance ( more importance to financial consideration rather than technical requirements) Lack of awareness on efficiency related issues: Inadequate MIS systems (analysis of financial impact of various operating parameters) Inadequate monitoring system for vital operating parameters Non availability of performance measuring instruments at station. Absence of dedicated group for efficiency improvement Poor Operation & Maintenance planning Barriers to Higher Generation Efficiency

23. STEEL SECTOR

24. Steel Industry – Highlights Crude steel production was at 54.52 million tonnes, a growth of 1.23% over last year with capacity utilisation at 89% during the year. It grew at more than 9% annually from 38.72 million tonnes (MT) in 2003-04. The growth was driven by capacity expansion from 43.91 million tonnes per annum (MTPA) in 2003-04 to 64.40 MTPA in 2008-09. The induction furnace route accounted for 32% of total crude steel production during 2008-2009.

25. Steel Industry – Highlights

26. Steel Industry – Some Energy Fact File ! Major Energy Source : Coking Coal, Non-Coking Coal, Coke, Electricity Energy Demand : Expected about 28% of total industry by 2030 Energy Consumption : About 35.5 MtoE in 2007-8 (Integrated Steel) No. of DCs : 98 as on 2008-09 (with more than 30000 mtoe p.a) SEC : 25.5 – 34.2 GJ/tcs (World Benchmark 16.5 – 18.5 GJ/Ton) Major Energy Consuming Area : Coking, Sinter making & Blast Furnace (62%) Slabbing & Hot Strip Mill (38%) Source : Energy Guidebook, PCRA

27. Energy efficiency potential, using best available technology

28. SEC (GJ/tcs) of Main Steel Producers

29. SPECIFIC ENERGY CONSUMPTION AND ITS TRENDS

30. SPECIFIC ENERGY CONSUMPTION AND ITS TRENDS

31. Integrated Steel Plants Steel Plants based on DRI/ EAF Route

32. Comparison of Specific Energy Consumption (in million kcal/tonne) Source: Energy Conservation Hand Book, PCRA

33. Hence, it may be seen that there is a large ‘Bandwidth’ in SEC in all sectors due to one or more factors. [In almost every sector, the most energy efficient unit is also amongst the most efficient units in the world] This implies that the energy efficiency improvement targets would have to be‘UNIT SPECIFIC’

34. Challenge before the NMEEE • In order to achieve the target set for the industry in a sector, the industry has to look for • Efficiency improvement in existing plant through retrofit options • Introduce best available technology • R & M of existing plants • Recovery of Waste Energy It is quite necessary to overcome the barrier (High Initial Cost) to make the energy efficient technologies as an attractive option. Technology Transfer is quite necessary at an affordable cost and acceptable mechanism.

35. Thanks …. For further information, Please Contact S.P.Garnaik Joint Director FICCI, New Delhi Ph.: 011-23359736 Email: soumya.garnayak@ficci.com 35