Energy Champions for Excellence in Plant Management

-YP Chawla
Abstract: The triple bottom line for business excellence gets derived from
excellence in Plant Management. Enhancing Output with reduced inputs to
improve the topline and bottom line will have many strategies of which one is
cost of energy inputs in energy intensive core industry like Steel, Cement, and
Fertilizer etc.
This paper deals with reducing cost of Energy inputs on the non-manufacturing
processes where Energy Champions can play a role. The Energy audit and
energy saving in Manufacturing Processes is considered authentic with inputs
from certified Energy Managers. Each of us can be an Energy Champion, without
any formal examination like Energy Managers, by contributing towards saving of
conventional Energy at Plant even in Non- Manufacturing process.
Tags: Energy Managers, Energy Champions, LED Bulbs, Efficient illumination,
Financials of LED Projects , CSR, Bharat Swatch Yojna
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1. A triple bottom line measures

i.
ii.

iii.

the company's economic value;

"peoples account"- measuring the
company's
degree
of
social
responsibility
and
the company's "planet account" which measures the company's
environmental responsibility.

Some argue that the companies should prepare three bottom lines the triple
bottom line instead of focusing solely on its finances/ Profit , thereby giving
consideration to the company's social, economic and environmental
impact. This also is called "TBL," "3BL," "People, Planet, Profit"
A challenge with the triple bottom line is that it is difficult to compare the
people and planet accounts in terms of cash the way the profit account is
measured. As such, the three separate accounts cannot be added or
combined, and must be considered separately.
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Improving Profit line and getting accountable to Planet a case of Solar Power
Generation is considered to be handled by Energy Champions

2. Solar Power Generation: (Case of Odisha is considered)

Industry if identified as Obligated entity has to meet Renewable Purchase
Obligations, Solar Power is one cleaner solution for the same.
Odisha has an average Solar radiation (Insolation) of 5 Kwh/sqm./day (4.9
Kwh/Sqm/day in Sundergarh) and has a potential of 8000 MWs of Solar Power
Plants in Odisha which needs a lot of waste land. 29.5 MW of Solar Plants are in
Odisha out of a national total of 2750 MW. The factories are endued with large
roof areas which remain unutilized and can provide a space for Solar Roof Tops.
India has a target of 15% Power Consumption from Renewable Energy by 2020.
SAIL / RSP has also considered the Solar Roof Top Option.
Roof Top experience in Odisha can be seen at Nalcos Office at Bhubneshwar
where a 160 KW Solar Plant has been commissioned in May 2014 and 78,500
Kwhs has been generated till end Oct 2014. A 100 Kw Solar Roof Top in Nalco
Township is likely to be commissioned soon. EoI for a Solar Roof Top of 5MW
size is planned at the plant buildings of Nalco.
Odisha being located at 17 49' North - 220 34' North Latitude & 81 29' East87 29' East Longitude receives good amount of sunshine for over 300 days a
year.

3. Rooftop Solar PV Power Plants- Odisha draft Solar Policy

With the objective of shaving day time peak
power requirement, reducing AT&C loss and
improve voltage Small Grid Interactive roof
top solar power projects connected to LT
Grid with individual capacities ranging from
0.5 KW to 500KW as well as completely
stand-alone
projects
for
different
Government, semi Government and NonGovernment institutes as well as private
households. The primary objective of these
projects
would be to use the solar power within the
institution/household during the day . Large
Commercial organizations can go up to 2
MW. No mention is made for Industrial or large Industrial organization. The
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Industry claims an accelerated depreciated @ 80 % of Capital Cost and 80% of

the balance in next year(s).

4. Way Forward in Solar Roof Top

For Industry:
1 Statutory inspection in respect of Safety & electric by Regional Electricity
Inspectoral Organization Kolkata as per Central Electricity Authority (CEA)
regulations 2010 is required.
2 Shaving off the units of power consumed at least during sunny days
through Solar Roof Top. The battery stored power can be used during
night, but economics will not work in large Industrial Plant and specifically
having captive power plant.
For Individuals
3 Draft Solar Policy of Electricity Regulatory Commission to be gazette
4 Deciding tariff for Grid fed electricity
5 Open access for transmission with in the same state / same transmission
company within the state
6 Renewable Energy Certificates (REC) can be decided based on Average
pooled power cost. Odisha Renewable Energy Development Authority
(OREDA) will accredit the plant in case of RECs. OREDA will advise in any
case support a project.
Solar Power has found its applications in CSR / Rural Development / Adarsh
Gram Yojna. A Reverse Osmosis (RO) System for Water purification system
along with Solar Water pumping and using the waste water from RO for wash
rooms is what a village is looking for along with Solar Street lights and Mobile
charging station.

5. CSR (adopt a Village) -Water Distribution arrangement with Solar

Pumping & Solar RO

Pure Drinking Water

School Toilet

6. Efficient

Lighting
Systems
Using
energy
efficient
lighting
becomes demand
side management of
electric
power
(DSM)
LED bulbs are rapidly expanding in household use, Industrial and Commercial
applications. Energy saving qualified LEDs use only about 20%-25% of the
energy and last up to 25 times longer than traditional incandescent bulbs. These
come in a variety of colors, and some are dimmable or offer convenient features
such as daylight and motion sensors. LEDs blue light has earned a Noble prize
in 2014. A comparison of light consumption is as at

Figure 1 Lighting Lumens meeting the Triple Bottom Line

Figure 2 Financials of Pudducherry Project , replacing the CFL & Incandescent with LEDs

A tentative business model as in Fig 2 of replacing 60 W incandescent lamps

with LED lamps each of 7 Watts (735000 nos.) at residences in Puducherry as a
whole union territory with 3.5 hrs of daily usage for 300 days saves 40.90 Mn.
Kwhrs . Adding for Transmission & distribution losses 12.5% & pool losses
4.37%.
The capital cost of project for bringing in LED lamps 735000 nos.@ Rs 310/worked out to Rs 22.78 Crs.( 30: 70- Equity Debt) is claimed over a span of 7
Years by sharing the energy saved cost. The project is monitored & verified by
Bureau of Energy Efficiency.
Cost Benefit analysis of the Energy Saving Project by the Distribution Co.
Sl

Description

Rs Cr

1.

Total investment made by Energy Saving Service Company.

ESCO

22.785

2.

Total Payout to be made by Electricity Department

Puducherry to ESCO during the project period of ten years
including O&M charges, (excluding Income Tax).

46.41

3.

Total Financial Savings deemed to accrue to Electricity

Department Puducherry in next ten years by saving energy
sold at subsidized rate

75.665

4.

Net savings to Electricity Department Puducherry over 10

years period

29.25
(approx)
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The above proposals do not require an Energy Manager. Anyone in the plant can
get this executed and be an Energy Champion.
This success story is now carried over by Chhattisgarh State as a whole. It has
been running at Apollo Tyres Chennai Plant also.

7. Some Inputs for Energy Managers: ORC on an Electric Arc Furnace

begins commercial operation
Turboden, a group company of Mitsubishi Heavy Industries Ltd. (MHI), and in the
production of Organic Rankine Cycle (ORC) turbo-generators for distributed
power generation, implemented the ORC-based heat recovery plant on an
Electric Arc Furnace (EAF) in the world. The new 3 MW electrical output ORC
unit exploits a portion of the saturated steam produced and recovers heat from
the exhaust gases downstream an EAF at Elbe-Stahlwerke Feralpi GmbH (ESF),
an iron and steel manufacturer located in Riesa, Germany.
The heat recovery system started about a year back and is connected to the offgas treatment system of the melting electric furnace. The recovered energy
reduces net power consumption, allowing significant CO2 reduction.
In addition to electricity production, the remaining portion of the steam is fed into
the Riesa Municipal steam supply system and used in a nearby tire factory
production process.
These types of generation plants allow reduction of industrial energy
consumption and emissions containment through heat recovery from unexploited
residual heat streams and exhaust gases in production processes and power
plants
This technology can be best applied in energy-intensive industries such as glass,
cement, aluminum, iron & steel, where production processes typically generate
exhaust gases above 250C.
These new plants not only provide advantages in terms of environmental
sustainability, emissions reduction, increased industrial process efficiency and
improved business performance, but they also represent opportunities for
increased competitiveness.

8. Summary:
i. Energy Champion: Any one can take on the role of saving energy
irrespective of profession, age or gender and be an Energy Champion. The
Energy saving is not the responsibility of Energy Managers and to be a
certified Energy Manager can take up the qualifying examination only after
certain experience and add excellence to Plant Management and improving
on 3 BL.
ii. Solar: Application of Green Energy generation through Solar Roof Top can be
well undertaken on large Industry roofs like that of a Steel Plant or a mid-size
factory or even domestic roof tops. The application of solar roof top needs an
urgent action which reduces Electricity bill thus adding excellence to Plant
Management with positive impact on the Planet.
iii. Corporate Social Responsibility (CSR): A concept of adopting a village,
providing Solar Street Lights, Solar Operated Water Pumping set with storage
system, Solar Operated Reverse Osmosis (RO) for drinking water and
Wastes from RO to be used for Toilets. This meets the requirements of
adopting a village, arranging safe drinking water for villagers; Clean Toilets,
Lighting system etc. can be considered a good option under Corporate Social
Responsibility project, thereby improving the Social value to the Plant
Management and improving on 3 BL.
iv. Efficient Lighting: Replacing existing lighting system with energy efficient
with LEDs and going in for Energy Saving Service Company (ESCO) with
ESCO investing on sharing out of electricity bill saving is a good option. This
is also and thus adding excellence to Plant Management improving the
bottom line and also saving the planet.
v. Energy Managers Role: On Waste heat recovery projects with cost benefit
basis can be taken on by a qualified Energy Manager and Energy Champion
takes on the listed activities at ii to iv above and contributing to triple bottom
line.
Brief Profile of the Author:
Y P Chawla; Advisor, Joint Electricity Regulatory Commission, National
Jt. Secretary Indian Institution of Plant Engineers (IIPE),
and a Research Scholar ( Power Sector Vocational Education)
ypchawla@gmail.com; 98107-08707
BE Tech. & MBA (Fin), PGDPM & PGDMM from Delhi University. Export
Mgmt. from Oxford. Pursuing PhD. in Skill Gaps in Power Sector, Over 4
decades of Experience in diversified sectors covering Energy including Solar
& other Renewable Energy, (Ex. BHEL), Water Sector, Tyre Manufacturing,
setting up Skill Center, Agriculture, and Infrastructure.
Widely travelled in India & abroad including some Foreign Postings. Because
of these postings got opportunities to get a holistic approach of Power Sector.
Have written papers on wide range of subjects (available on web)
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