ENERGY AUDIT STUDY Gujarat Energy Development Agency Subsidy Scheme th 4 floor,Block no.11-12, Udyog Bhavan, (2008-09) Sector-11,Ghandhinagar-382 017 Tele:(079)23247086,23247089,23247090 Fax:(079)23247097, email:firstname.lastname@example.org Website:www.geda.org.in Energy Conservation in Industries – Potential & Need Industrial profits usually leakout through inefficient energy utilization. Increasing industrial competition and ever-increasing costs of available forms of energy, especially fossil fuels, have focussed attention on the need to cut down on wasteful energy consumption - to enhance & to sustain industrial profits. Since an Energy Audit helps in identifying the areas where there is wastage and where scope for conservation exists, it has become an important tool in crucial management decisions. Energy Audit is a positive approach to energy cost reduction, preventive maintenance and quality control programmes. It helps keep alive variations which occur in energy costs, availability and reliability of energy supply, decide the appropriate energy mix, select the right conservation technology, retrofits for energy conservation equipment, etc. Energy Audit translates conservation ideas into actual money saved. It blends technically feasible solutions with economic and other organisational considerations within a specified time frame. It is more beneficial than a piecemeal introduction of short-term measures, as it is a comprehensive strategy that also envisages gearing up of organisational structure and other infrastructure requirements. Estimated energy conservation potential in Indian Industries is given in the Table given below. Marginal investments are required for improving energy efficiency which is justified by the short payback periods.. Table: Energy Conservation Potential in Indian Industries The industrial sector is a major energy-consuming sector accounting for about 50 % of the commercial energy available in the country. The total energy consumption, including non-energy uses about 105 mtoe. Of the commercial sources of energy, coal & lignite account for 56%, oil & natural gas – 40%, hydroelectric power 3% and nuclear power 1%. % SHARE OF ENERGY % CONSERVATION INDUSTRIES IN PRODUCTION COST POTENTIAL Refineries 1 8-10 Sugar 3.4 25-30 Ferrous Foundry 10.5 15-20 Textile 10.9 20-25 Petrochemical 12.7 10-15 Chloro-alkali 15 10-15 Iron & Steel 15.8 8-10 Fertilizers & Pesticides 18.3 10-15 Pulp & Paper 22.8 20-25 Glass 32.5 15-20 Ceramics 33.7 15-20 Aluminum 34.2 8-10 Cement 34.9 10-15 Ferro-alloys 36.5 8-10 Energy Audit An Energy Audit Study helps an organisation to understand and analyse its energy utilisation and to identify areas where energy use can be reduced, to budget energy use, plan and implement feasible energy conservation measures that will enhance their energy efficiency, curtail energy wastage and substantially reduce energy costs. The Energy Audit serves to identify all the energy streams in a facility, qualify energy usage with its discrete functions, in an attempt to balance the total energy input with its use. Energy Audit is thus the key to a systematic approach for decision-making in the area of Energy Management. As a result, the Energy Audit Study becomes an effective tool in defining and pursuing comprehensive Energy Management Programme (EMP). Energy Audit Study includes • Auditing of Energy Consumption (including any heat and power generated) • General examination of work place (including physical condition of organisation, its processes, occupancy time, and variations in ambient temparature and energy consumption pattern etc.) • Measurement of all energy flows.(including testing of boiler or steam raising, heating equipment, refrigeration, etc.) • Analysis and appraisal of energy usage.(e.g. specific fuel consumption, energy-product interrelationship). • Energy management procedures and methodology. • Identification of energy improvement opportunities and recommendations for energy efficiency measures and quantification of implementation costs and paybacks. • Identification of possible usages of co-generation, renewable sources of energy and recommendations for implementation, wherever possible, with cost benefit analysis. Objectives of Energy Audit The objective of providing EAS subsidy is to promote the idea of Energy Conservation in the industrial sector of Gujarat. The work eligible for Energy Audit Study should be directed towards: • Identification of areas of energy wastage and estimation of energy saving potential • Suggesting cost-effective measures to improve the efficiency of energy use, • Estimation of implementation costs and payback periods for each recommended action and • Documenting results & vital information generated through these activities. The Incentive – GEDA Energy Audit Subsidy Scheme The Gujarat Energy Development Agency (GEDA), established in 1979 by the Government of Gujarat, is a non-profit making nodal agency, devoted to the R & D and promotion in the field of Non-converntional Sources of Energy and Energy Conservation. The industrial sector is the largest consumer of commercial energy and evidently the sector with maximum potential for conservation of vital energy resource of the country. There is a potentila for conserving 30-40% energy in some key industrial clusters. Absence of systematic energy monitoring mechanism is a major factor that is responsible for a large amount of unproductive energy utilisation in industries. GEDA’s Energy Audit Scheme provides an opportunity to industries to visualise the advantages of systematic energy analysis and increase their profit through better efficiency. Energy audits of industrial units, commercial complexes, hotels and hospitals are covered under this subsidy scheme. The subsidy will cover upto 50 % cost of the Energy Audit Study (EAS), upto a maximum of Rs.20, 000/-. Industries with a electrical CD of less than 200 kVA and commercial complexes with a electrical CD less than 75 kVA would only be eligible for subsidy under this Scheme. GEDA Authorized Energy Audit Consultants GEDA has authorized Energy Audit Consultants for providing consultancy services to the industries under the EAS Subsidy Scheme. Energy audits conducted by these authorized Energy Audit Consultants would only be eligible for the subsidy. List of GEDA authorised Energy Audit Consultants can be made available on request to the industries. Energy Conservation - The Savings It has been established through over 2000 industrial energy audit conducted in the State during past one decade that there is a potential for saving 5 to 50% energy in different types of industries. Types of industries audited include chemical, pharmaceutical, dyestuff, textile & textile processing, metal processing, bakeries, paper & pulp, engineering, electrical, agricultural & food processing, hotels, commercial complexes, etc. By following good house-keeping and proper operational practices alone can reduce energy consumption by 5 - 10 %. About 10 - 15 percent energy can be saved by use of high efficiency equipments and 30-50% energy can be saved by replacing obsolete manufacturing machinery with modernising plants. Investments on modernisation projects are paid back within period of 2 to 3 years through energy saving achieved and considering present bank inflation rate this kind of return is considered to be good. Procedures for Applying For Subsidy 1. An industry willing to avail subsidy is required to apply in the format in Form I. Services of GEDA authorized Energy Audit Consultant engaged may be taken for applying procedures. 2. Application should be submitted to GEDA office alongwith • Proposal of the Energy Audit Consultant engaged by the industry - financial offer & scope of study. • Latest Annual Report of the Industry applying for subsidy. 3. Subsidy sanction issued by GEDA would indicate subsidy amount; elaborate scope of study; duration of study (with last date for report submission) and Terms & conditions of sanction. Procedures for Claiming Subsidy 1. Submission of one copy of draft Energy Audit Report, alongwith industry’s comment, to GEDA before the specified last date. 2. Formal presentation of the report by the Consultant, in presence of GEDA representative and the concerned executives from the industry. The presentation to be arranged in the premises of the Industry, with prior intimation, on a mutually convenient date. 3. Acceptance of the EA Report, with modifications, if any, after the formal presentation. 4. Submission of 2 copies Final Report, spirally or comb bound, alongwith the Declarartion (as per Form II) duly signed/sealed, proof of payment made to the Energy Audit Consultant for the EA study and implementation energy conservation measures suggested in the report with time schedule, estaimates of savings and investments required. It is recommended that the Industry should take up implementation of energy saving measures as per the recommendations of the EA Report and closely monitor the results Terms and Conditions of EAS Subsidy Sanction 1. The scope of the EA Study would be as specified by GEDA in its sanction. 2. The work eligible for the EAS subsidy would include assessment of energy use in the industry, outline of cost-effective measures, scope of energy saving, estimates of investments for implementation of corrective measures suggested, payback periods and reporting of results of these activities. Other works, in particular tariff comparison and analysis, preparation of tender specifications and tender evaluation, detailed design work, work connected with implementation of measures and long- term consultancy work are not eligible for subsidy under the scheme. 3. Any industry within the Gujarat will be eligible for availing subsidy under this scheme 'once' provided the industry has not availed subsidy under any other government scheme. 4. Energy audits conducted by GEDA authorized Energy Audit Consultants will only be valid for availing subsidy under this scheme. 5. The energy auidt must be conducted as per the scope defined in GEDA's sanction letter. Any deviation in the specified scope of study will result in cancellation of the subsidy. 6. The industry must forward the draft report to GEDA with its comments. A formal presentation of the report by the Energy Audit Consultant, in the premises of the industry should be arranged in the presence of GEDA official(s) and concerned executives from within the industry. Only after the presentation and discussion the report will be accepted. 7. The claim for subsidy is subject to the sanction issued by GEDA. Any claim without a prior sanction of GEDA would not be entertained. All payments made by the industry to the Energy Audit Consultant should be done so by cheque or demand draft only. 8. It is mendatory for the industry to implement EC measures so as to achive atleast 20% of the financial saving projected in the Final Report. 9. GEDA shall follow up on the post-audit implementation by the industry, with either a written communication or a personal visit by its representative to the industry. The industry would be obliged to respond positively to such visits and/or correspondances. 10. GEDA reserves the right to reject an application for EAS subsidy without giving reasons and to change the terms and conditions of the scheme and to terminate the scheme at any time. 11. The Energy Audit Report would be a confidential document. However, GEDA reserves the right to use and publish data and information generated during the study, for dessemination to other similar industries. The industry may have the option of not indicating its name on the Report. In such cases GEDA's sanction number & date should be mentioned in the Report. 12. If the study is not completed within the specified time limit, GEDA may decide to cancel the subsidy. However, extension, if required, may be requested, before the due date of reporting, stating reasons for the extension. It would be at GEDA's descretion to grant such extension. 13. Terms Of Payment Of Energy Audit Subsidy GEDA shall release subsidy amount directly to the industry against submission of two copies of the Final Report. The industry shall submit the subsidy claim letter alongwith `Declaration' (Form II) and proof of payment released to the Energy Audit Consultant. The subsidy would be disbursed as follows: • 50% against submission of Final Report • 50 % against submission of the post-audit Feedback Report, duly certified jointly by the industry and the Energy Audit Consultant. Payment can be claimed a within one month from the date of submission of the Final Report For details please contact: Sr.Project Executive/Assistant Project Executive, Gujarat Energy devlopment Agency, 4th Ffloor, Block No 11-12, Udyog Bhavan, Sector-11, Gandhinagar. Date of Isssue: APPLICATION FORM (Page I) ENERGY AUDIT STUDY Gujarat Energy Development Agency Subsidy Scheme th 4 floor,Block no.11-12, Udyog Bhavan, (2008-09) Sector-11,Ghandhinagar-382 017 Tele:(079)23247086,23247089,23247090 Fax:(079)23247097, email:email@example.com Website:www.geda.org.in The Director Gujarat Energy Development Agency Gandhinagar Details of Applying Industry Name of Applying Industry M/s Classification Full Address (for correspondence) & Contact Tele/Fax.nos. Name of Unit M/s Site Addresss (Unit to be studied) Senior Management Contact Mr. (at Factory Site) Designation: Tele/Fax/Mobile Nos Status of the Industry: (Whether pvt., public, etc.) Company Registration No: Number of Employees Approximate Floor Area Details of EA Consultant Engaged Name of Consultant M/s Address Tele/Fax No: Name of Contact Person Details of Energy Audit Proposed Cost of EA Study Rs. (Copy of Consultants’ offer) Estimated mandays for EAStudy Mandays Duration of the EA Study Mandays APPLICATION FORM (Page II) Product & Processes Annual Production No. Products/Services (in specific units) Brief Description of the Manufacturing Process / Service Annual Turnover: Rs. Fuel / Energy Consumption Annual Annual Energy/Fuel Consumption in Source Unit Price in Expenditure on specific units Rs. Energy(lakh Rs.) Coal tons High Speed Diesel Oil kL Light Diesel Oil kL Furnace Oil kL LSHS kL Electric Power lakh units Grid Liq.Petroleum Gas tons Natural Gas Captive (DG Set) Others Details of Power Demand Contract Demand : ________ HP/KVA/kW Category : HT / LT (Enclose copy of the latest Power Bill) APPLICATION FORM (Page III) Energy Consuming Processes/Equipments S.No Name of Major energy Rated capacity Monthly Monthly Energy Related consuming process / of process/ Operation Consumption Output equipment equipment (inhours) APPLICATION We attach herewith the scope of study proposal (s) with a request to accord sanction of subsidy under the GEDA Energy Audit Subsidy Scheme (2008-09) towards the cost of the Energy Audit Study of our unit. M/s ________________________________________________________________________________ to be conducted by M/s __________________________________________________GEDA’s authorized Consultants. We are willing to provide information in response to a follow-up visit or to a postal enquiry from GEDA or its representative about the outcome of the Energy Audit Study. Date : _________________ Seal & Signature ____________________ Name of signatory: ____________________ Designation: ____________________ Encl.: • Latest Annual Report of the Company • Proposal of the Consultant alongwith the Scope of Study. • Latest Electricity Bill FOR OFFICE USE ONLY Application received on : ________ Application processed on : ________ Sanction issued on : ______ for Rs. ___________ (Ref.no: GEDA/TEC:EC/EAS/______) Draft EAS Report recd on: ________ Industry Visited on __________ by : Payment processed on: __________ Payment relased on: ______________ DECLARATION FORM - II ENERGY AUDIT STUDY Gujarat Energy Development Agency Subsidy Scheme 4th floor,Block no.11-12, Udyog Bhavan, (2008-09) Sector-11,Ghandhinagar-382 017 Tele:(079)23247086,23247089,23247090 Fax:(079)23247097, email:firstname.lastname@example.org Website:www.geda.org.in (To be certified by Chief Executive of the Industry or his equivalent) 1. We confirm that : I. The study was carried out and the report was prepared in accordance with the agreed scope of study and terms & conditions laid down by GEDA in the subsidy sanction (Ref.No: GEDA/TEC:EC/EAS/2008-09/ __________ dated: __________;) II. We are satisfied with the outcome of the study and the EA report and confirm that the data contained in the report and in this form are correct to the best of our knowledge; III. We are satisfied with the general business conduct of the Consultant; IV. All the suggestions made during the presentation of the draft report have been incorporated in the final report. 2. We declare that we have made full payment to the Consultant. Copy payment receipt/s enclosed for reference. 3. We agree to provide information to a representative of GEDA, who may write or visit the site any time in the future to collect feedback, on measures implemented and energy savings accrued as a result of the Energy Audit. 4. We are herewith sending a brief summary of actions we propose to take as a result of this study. 5. We enclose herewith three  copies of the Energy Audit Study report. 6. Comments on the Energy Audit Report: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ Date : _____________ ______________________________________ Signature - for Industry _______________________________________ Name & Designation of Signatory Encl : 1. Two copies of Final Energy Audit Report 2. Copy of payment receipt/s issued by Consultant 3. Summary of EC Implementation Program.
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