Result of Baseline Study of Selected Sector Industries to assess the Potentials

for more Efficient use of Energy

Gyanendra P. UpadhyayLocal Long Term Expert, Energy Efficiency

Background Scope for efficient use of energy in Nepalese

industries.

GON and GOG signed agreement for NEEP to promote efficient use of energy

GIZ and WECS as implementing agencies – FNCCI has established EEC

Consulting Company awarded by GIZ to conduct a baseline study of industries comprising eight sectors of industries namely Cement, Pulp & Paper, Food, Metal, Soap & chemicals, Hotel, Brick, and Cold storage

Selection

S. No. Sector of Industry Population Sample size

1 Cement 35 26

2 Pulp & Paper 7 5

3 Food 139 51

4 Metal 64 21

5 Soap & Chemicals 38 19

6 Hotel 188 39

7 Brick 435 27

8 Cold Storage 23 12

Total 929 200

Summary of all sectors

Saving potential of 8 energy-intensive sectors

No Sector

Nepal

National Production

Energy Saving PotentialEmission Savings

Electrical Thermal Money CO2Q MWh GJ NPR kg

1Cement 2,642,521 t 1,488,829,349 85,853

Clinker-based 1,933,518 t 45,854 - 383,938,427 5,486Limestone-based 709,003 t 35,390 1,598,359 1,104,890,923 80,367

2 Pulp & Paper 39,372t 919 136,848 33,663,972 9,940

3

Food total 783,680,733 12,835Beverage 2,000,000 kl 23,075 177,635 430,210,534 1,161

Biscuit 18,000 t 1,551 12,835 18,988,796 791Dairy 1,556,000 kl 7,584 192,145 257,647,474 1,068

Noodle 42,840 t 478 52,577 15,298,110 2,353Sugar 190,650 t 1,900 5,080 21,020,412 491

Vegetable Oil & Ghee 194,319 t 1,911 124,337 40,515,407 6,9714 Metal 600,000 t 5,522 202,695 281,870,090 9,4905 Soap & Chemical 112,000 t 1,210 149,334 42,087,972 10,2266 Hotel 15,021 rooms 29,445 97,056 360,432,716 1,951

7

Brick 3,374,780,735 6,535FC-BTK 3,984,000,000

bricks0 5,329,804

3,374,019,929 6,524

VSBK 16,000,000 bricks

0 1,214/760,806 12

8 Cold Storage 60,900 t 1,838 - 13,191,798 108Total 156,676 8,079,920 6,378,537,366 136,938

Cement Sector

Observations

Two types of cement plants Limestone based Clinker based

Limestone based plants use electrical as well as thermal energy (coal) as fuel for Sintering process

Clinker based plants use electrical energy Motors used are old, rewound and of standard efficiency NEA supply is from 66/33/11 kV with TOD metering Capacitor banks are installed to improve P.F. Face problem of voltage fluctuation and low voltage supply Production hampered by load shedding

Pulp & Paper Sector

Observations Electrical as well as thermal energy from rice

husk in boiler

Capacitor banks used to improve power factor more than 0.9

Combustion efficiency is not checked for boilers

Steam leakages observed

Insulation not satisfactory

Frequent non-scheduled power cuts result in production loss

High cost of Generated electrical energy

Food Sector

Food Sector

Sub-sectors

Beverage

Biscuit

Dairy

Noodle

Sugar

Vegetable oil & Ghee

Observations

Food industries consume both electrical and thermal energy.

Diesel boiler used most for backup.

Use of inefficient motors.

Steam leakages are observed.

Improper Insulation

Power factor not manage well.

Potential saving as per ESPS standard

Total Electrical (MWh)

Electrical saving (MWh)

Total Thermal

(GJ)

Thermal saving (GJ)

Beverage 1,530 139 55,623 10,707

Biscuit 3,571 1,052 56,584 8,702

Dairy 7,996 505 91,913 12,785

Noodles 3,956 243 235,382 26,786

Sugar 5,386 783 10,106 2,095

Veg. oil & ghee

21,863 1,200 705,371 78,084

Metal Sector

Observations

Iron and Steel industries are installed with heavy motors and electrical energy is mainly used for the drives of rolling mill, billet sharing, pumps, compressor, blowers and wire plant motors

Motors are old and re-winded

Capacitor banks are used to improve power factor

Furnace is used mainly with coal, FO and diesel and workplace is warm/hot indicating insufficient insulation

Frequent power cuts affect production

Soap & Chemical Sector

Observations Laundry soap is the main product

Small scale pan boiling units use firewood medium and large units use rice husk fired boiler

Only few industries uses capacitor bank

Combustion efficiency is not checked

Leakages are seen

Insulation not adequate – pipes, flanges and valves are not insulated

Brick Sector

Observations

Majority of brick industries are BTK (fixed chimney)

Energy use in brick kiln is coal and coal is imported from India

Electricity is used for lighting and drives

No significant disturbance in production by load shedding

Insulation inefficient

Inefficient coal feeding practice

Cold Storage Sector

Observations

Potatoes and fruits are the main products stored

They consume only electrical energy for cooling process

The rate of electricity charge is subsidized 50% by NEA

All units have DG for backup.

Motor loadings are not checked

Power factor is low – none used capacitor banks

Many incandescent lamps are used

Air curtains are not used

Energy Intensity regional VS Baseline

Sector Electrical Intensity

Regional (kWh/MT) Baseline (kWh/MT)

CementLimestone Base

105 148.5

Cement Clinker Base

35 48.68

Pulp & Paper 1175 937.49

Metal 200 149.17

Soap & Chemical - 111.25

Brick (BTK Fixed - 21.27 kWh/1000 pcs

Cold Storage - 283.53

Energy Intensity regional VS Baseline

Sector Thermal Intensity

Regional (MJ/MT) Baseline (MJ/MT)

CementLimestone Base

3,138 5,411.26

Cement Clinker Base

- -

Pulp & Paper 16,412 15,434

Metal 1,500 1,470

Soap & Chemical - 3,378

Brick (BTK Fixed 2,215 MJ/1000 pcs 3,951 MJ/1000 pcs

Cold Storage - -

Areas of Potential Savings Efficient motors Power factor improvement Improvement in insulation of the cold pipelines,

storage room walls and ceiling More efficient belt and pulleys Partition of cooling areas, installation and

effective use of air curtains Regular cleaning and maintenance of condenser

pipes Replacement of incandescent lamps Minimization of leakages of compressed

ammonia gas

Recommendations Energy audits must be carried out

periodically in all the industries so that opportunities are known and understood

Awareness & training about EE

Financing for the implementation of energy saving options – mobilize financial institutes and banks

Keeping the record of data and monitoring

Recommendations

Institutionalizing energy audit expertise

Focus on best practices and best available technology on energy

Policy with mandatory periodic energy audits and reporting

Involve educational institutions for offer course on EE

Competition and award for improvement in EE by sector

Thank you