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Institution of Engineers Pakistan, Rawalpindi - Islamabad

Centre, 17th Dec, 2011

ENERGY MANAGEMENT -
SOLUTIONS & CHALLENGES

By

Engr Arjumund A. Shaikh

AKTS Consultants Group - World Bank


Former Member Technical - NTC Board Ministry of IT &
Telecom,

akts@aktelekom.com, www.aktelekom.com
Ph:92 51 2652121, Cell: 92 300 8552729
EM Structure Packages 17-12-
2011 (arjumund)
1. Energy Scenario
Scenario & Perception on Energy crisis
Root causes of Crisis ( Linked Energy Saving solutions)
2. Energy Management (EM)
Energy Sustainability:
Sustainability Objective w.r.t Role of Building codes
Energy Savings Potential Identification: Major Sectors
Building Management system(BMS) & Saving Measures
Energy Saving in Industry & Assessment Methodology
3. Energy efficient Technologies-Pakistan
potential
4. Key Challenges in RET
5. Energy Solutions (short term & Long terms)
6. Climate Change Global impact on Energy?
7. Panel Discussion
1.EXISTING SCENARIO

&
Our Perception
about

Cash Bleeding Energy Industry


INSTALLED CAPACITY
Sector wise Consumption

(i) Energy Consumption:


Industrial Sector: 29.1%
Agricultural Sector : 14.3%
Commercial Sector: 5.5 %
Government Sector: 7.4%
House hold : 44.2%

(ii)Cost per Kwh in Rupees from:


Terbala: 0.71, Ghazi Broatha: 1.16,
Basha: 4.95
Rental: 16+
Worldwide Oil Reserves-- World
Energy Book

Peak of oil production expected:


2010-2030.

World oil economic depletion: 2035-


2084

BUT: Oil use is growing: 18%


Energy Crisis Reasons & Root
causes

Financial Constraints
Strategic Planning and Technical
Failures
Lack of Investments

Solution through

Energy Management
Cash bleeding Sector: FINANCAIL
Excessive Line Losses/Y: RS
40 B
Loss due to Slow Bill Recovery/Y:
RS 80 B
Late Payment Surcharge to
IPP/M:RS 24 B
Fuel adjustment Charge Loss/Y:
RS 24 B
Decrease supply of Gas to P. H/Y:
RS 72 B
Soaring Circular debt: RS
TECHNICAL: Poor Planning
1. Short Gas Supply to Power/ Industry : ( Reported)
Power sector ( IPP &Nuclear): 28% (against 43%)
Industry: 26% (against 39%)
Fertilizers: 14%
Domestic: 17%

2. GAS Short fall:


Unaccounted for Gas (UFG) Pipe Loss increased to
26%;
Gas surcharge : not spent on Infra- Development;
Foreign Investment declined: Decrease in supplies;

3. GAS Crisis in Textile Industry means:


Rs 8 B /year TAX decrease ;
Currency printing for Economy: increased inflation;
$14 B Export, $15 B Jobs at Stake-;
(Industry priority)
TECHNICAL: cont --

Resource exploitation- Poor Planning :


ENERGY POTENTIAL: (Nepra site)
Hydel Potential: 48,000 MW( India 35%, SriLanka 60%, Pak 16%) slide
Coal Potential : 20,000 MW ( China 70%, India 56%, Pak 0.11 %) slide
Nuclear Energy: 8,8000 MW ( 690 MW)
Wind power Potential: 346,000 MW ( 170 MW against 2850 MW by
2015)
Solar Power Potential: 2.9 Million MW ( 80 MW against 1600 MW by
2015)
Non Implementation of Long Term Power Generation ( Rental Power)
Low water levels , Dams De-silting, Water for irrigation, Stolen water etc
Mismanagement: (Nandipur & Chhichokimalian )
Load Survey-Industry, A/C,T-wells Demand Forecast
(14%) ;
High transmission & Electric Distribution Losses;
Dormant : Energy Conservation/Saving (Ration,
Rotation);

Incompetency: Lacking decisions, Administrative Lethargy slide

Imbalance in Energy Mix (Priorities);


slide
National Energy priorities-Indicators
2. ENERGY MANAGEMENT
Energy Management-Statement
Various studies recommend that Energy sector be
driven by two policy considerations: (i) Energy
efficiency and (ii) good governance. This objective
is met by improvements in energy efficiency and
energy efficient technologies that minimize
adverse impacts on the environment;
Definition: It is a Program to rationalize energy
use, reduce consumption, cut energy costs &
carbon emissions and ensure implementation;
Watt saved is a Watt generated, Better, to
much cheaper to save, than to generate a Watt;

This means to identifying the areas of wasteful


use of Energy & taking steps to reduce the waste
to a bare minimum.
Sustainable Industrial &
Commercial Buildings
Conservation Program
ENERGY SAVING POTENTIAL- Enercon

Building: 30%

Industry : 25%

Agriculture: 20%

Transport: 30%

On Average 26%

Achievable saving for Pakistan estimated


through EE/EC: Over $ 3.2 Billion / year

(E.M
.Program features )
Building Management System
(BMS)
BMS is an energy efficient Web-based platform Building
system to provide:

Integration: Geographically dispersed sites with one


N/W
Intelligent integration: HVAC, Access Control, CCTV,
Lighting, Energy Management subsystems etc
Acknowledge and review alarms with alarm processing
and routing, e-mail pagingetc
Serve platform for N/Ws control, monitoring, alarming,
database and log management of all building functions
Serve cost-effective infrastructure for convergence
with IT networks

(Smart Building)
.
Building Codes- greatest potential
Building codes cover Energy efficiency aspects of Buildings:
Heating, Ventilation, air-conditioning(HVAC) subsystem
Lighting, Insulation, Glazing subsystem
Power and distribution subsystem
Pumping subsystems.
Energy, Domestic Appliances & Security Standards
Benefits of Energy Codes practices :
Assists in Energy Saving/ Conservation, Lowers Energy Bills of
users
Helps Save investment in Power generation
Extends equipment life and reduces Maintenance cost
Carbon Credits Claims: due emission reduction from Conservation
Beneficial to National Budget and Economy
Based on above considerations & abnormally high losses,
the answer does not lie in increasing supply but from better
Energy management- to deliver more at Lower cost ;
Buildings, Consumer behaviour and transport offer the
greatest potential for energy efficiency (EE)
ENERGY MANAGEMENT Energy Audit

Energy Management(EM) Policy: provides sense of direction to


the Program and fixes Energy standards of Manufacturing,
System performance and Environments;
Methodology: Conducting Energy performance Audit and
Framework of Recommendations for energy efficiency ;
Monitoring: It is foundation On which EM is built by
interviewing, Examining energy profile, usage, energy costs,
M/c load, Data col
Training & Motivating Staff: Energy awareness and change in
attitude and behavior. Education is Keys to the success to EM;
Benchmarking: Means to Fixing indicators of Energy, Buildings,
Environment, Industry/Industry services, Domestic Appliances;
Reporting: Briefing, Recommendations, Implementation,
Review;
Analysis: E.M is continuous process of improvement
performance, targets to be regularly evaluated.
ENERGY CONSERVATION POTENTIAL IN PAKISTAN

INDUSTRIAL SECTOR SAVING POTENTIAL (%)


AGRICULTURE 5-15
PAPER 10
GLASS / CERAMIC 10-15
COMMERCIAL BUILDING 10-25
FOOD & BEVERAGE 10-30
TEXTILE 14-30
FERTILIZER 16-30
CEMENT 20-40
IRON / STEEL 23
PETROCHEMICAL 35
DOMESTIC 10-15
PUBLIC UTILITY SERVICES 10
Typical Energy Saving Areas: in Industrial Sector

Energy Savings and Electric Motors, HVAC


Controls
Energy Savings and Compressed Air Systems
Energy Savings and Steam Generation
Boilers
Energy Savings in Steam Distribution Systems
Energy Savings and Furnaces
Energy Savings Through Heat Recovery
Energy Savings Through Cogeneration
Industry Regulatory Measures, producing
Energy Saving:
energy performance standards
building codes for the New Buildings
Regulatory environment conditions (CO 2 )
Problems identified-Energy Audit

Absence of Energy Management systems,


Lack of top management commitment,
Energy performance codes for
Equipment- (compressors, cooling, towers,
boilers, pumps and fans)
Lack of awareness about savings
potential,
Lack of data, and problems of
benchmarking.
Shortage of quality energy professionals.
Training in Energy efficient Program
initiatives
Realization of Potential Savings
3. ENERGY EFFICIENT
TECHNOLOGIES

(RENEWABLE TECHNOLOGY)
The Need for Renewable Energy

Projected Depletion of Current


Fuels

OIL Reserves 41 Years


Natural Gas 40 Years
Coal 164 Years
RENEWABLE ENERGY

Solar
Wind Mills
Biogas
Geothermal
Wave Energy
Biomass
Bio fuel
Hydropower
Solar PV Status

Potential of Renewable
Energy:10,000 MW
Solar installed (for lighting & water
pumping ):200

Capacity varies bet: 200


500 W.
Total PV generation capacity: 80
kW.
Number of Solar water
heaters:100
AEDB RESOLVE
Wind Energy
40% of the Wind resource is in UK
China Number One in Wind
Wind Power Potential:50,000 MW
Wind turbine capacity: 0.5-1.5kw
Issues: Land,
Storage, Maint, Availablity
Types of wind turbine:
-Horizontal axis Turbines
-Vertical Axis Turbines
Wind turbines installed : 1300 (for 430
Coastal houses)
AEDB & PCRET-Biogas
(i) Number of Biogas cook stoves distributed by
PCRET with annual financial savings of fuel wood
worth of Rs. 86 million (US$ 1 million): 90,000.
(ii) Number of Biogas plants installed, for meeting
domestic fuel needs of households: 1600 Plants
Number of Plants installed by AEDB : 1,200 for
domestic needs in the rural area of the Punjab
province.
Capacity of bet 5-15 cubic meters per day.
Annual biogas generation capacity: 2.5
million m3.
Foundation for Integrated Development Action
(FIDA) & RSPN constructed : 2047
Initiative for Rural and Sustainable Development
(IRSD) & UNSP: 150
4. KEY CHALLANGES
In

Renewable Energy
Technologies
CHALLENGES: RET
(a) Well defined Renewable Energy policy
(b) No technical and Quality standards
(c) Cash Flow and funds Availability on target;
(d) Non-operational One window : Site availability,
administrative lethargy, delays in approvals;
(e) Training needs, capacity building of Stakeholders ;
(f) Community participation with overall responsibility
supported by well equipped Workshop for O& M;
(g) Absence of Regulatory Authority for RET
(h) Pilot projects a model for launching a larger program;
RE Tariffs and Feed-in tariffs,
Tax, Carbon credits, Import duties Sales tax,
Creation of Renewable energy funds and R&D

(I) Lack of political will and EE incentives-greatest barriers

.
5. ENERGY SOLUTIONS

(SHORT & LONG TERMS)


Short Term solution/measures
1. Capacity utilization by Overhauling & Capacity
addition;
2. Energy Mix Policy Focus: Coal, Hydel and Renewable
Energy
3. Encourage Investment: Law N order improvement;
4. Energy Policy: Investment friendly/ Power supply Priority/
incentives to users/ low interest finances & Access to credit to
farmers/ Competent Professionals/ Private sector
Participation/ Awareness campaign etc;
5. Top most Priority: Renewable Energy Technologies
6. Energy efficiency /Saving Measures: Legislation needed
Long Term solution/Measures
7. Coal reserve (33 Trillion tons) & Hydel Energy Exploitation
8. Rehabilitation of outdated Transmission & distribution
9. Infrastructure Augmentation/Upgrading and
Development
10.Better Urban Planning and Deployment of Transport
11.Governments creditability & Agencies facilitation
Costs of Climate Change: Impact
on Energy
World Bank Studies reveal that:

40% of development aid investment is


at risk from climate change
Humanitarian costs could rise by 200%
by 2015
Weather disasters could cost as
much as a trillion dollars in a single
year- by 2040
Projects Review cost of climate change
estimates to be between 5-20% of
global GDP;
CPD PROPSED PROGRAM- SERIES
2012
1. Engineering Project Management
2. Change Management and Organization
Development
3. Project Human Resource Management
4. Total Quality Management
5. Project Scheduling Techniques
6. Environmental Impact Assessment
7. Interpersonal Communication Skills for Engineers
8. Disaster Management: Role of ICTs
9. Renewable Energy alternatives- Way forward
10.Renewable Energy Resources-Road to sustainable
Growth
11.Meeting the Energy demands-Viable options
12.Promotion of Renewable Energy Technologies
through Private sector participation
13.Energy Efficient solutions-Way forward
14.Overview of Bio-Energy
Energy Codes
Energy Codes Benefits:
Lower Energy Bills
Reduce Need for New
Environmental Benefits
Energy Codes include
Lighting
Insulation
Glazing
Heating and Cooling Equipment
Other Energy Efficiency Measures
Legal coverage & Stringent implementation
measures with close cooperation of Civic
bodies
Sustainable Energy-Objectives

Objectives :
1. Sufficient availability: On demand over the
period,
2. Cost-efficient: Oil price index portrays increasing
complexity in forecasting the future trend.
Should not Lacks in security;
3. Environmentally friendly: largely affected by
increase in temperature and green houses gases
have cruel impact on future developments;
4. Complies with: International standards in energy
efficiency , Technology and environment;
5. Compatibility: Working with a common hardware
and Energy software platform.
Resource Efficient Facilities

Building Fire safety Electronic


Comfort Security
Comfort and Protecting Protecting
energy life and people,
Efficiency Property assets and
processes
HVAC
controls Fire Access control
Valves, detection Video
actuators Extinguishing surveillance
Energy Evacuation Intrusion
services detect
and solutions protection
Central
Energy Savings - Building
Envelope materials focus on developing
improved insulation of walls and roofing
materials;
Windows and Doors : contribute
significantly to the whole building design
forming heating and air conditioning
loads;
Ventilation in Buildings; Improving air
efficiency and air flow ducts;
Solid-state lighting (SSL- LEDs & Organic
OLEDs) technology, having potential to cut
lighting energy usage, contributing
significantly to climate change solutions.
BIOMASS ENERGY
Biomass: Consists of the organic
material that makes up living
organisms
Biomass Energy: From plant and
animal matter, such as charcoal,
wood, manure, crops. These can be
burned to generate heat or electricity
Biomass Fuels: some biomass can be
converted into fuels:
Ethanol: from fermentation (corn)
-can be added to gasoline and used
in Flex-Fuel cars
Biodiesel: from vegetable oil,