SCHOOL OF ENGINEERING, INSTITUTE OF TECHNOLOGY

Mechanical Engineering Department

M Tech Mechanical Engg (Thermal Engg)
Sessional Examination
3ME2118 Energy Conservation and Management
Date: January 4, 2021 Time: 9.15 a.m. to 10.30 a.m.
Day: Monday Marks: 40
Instructions: 1. Clearly mention assumptions made.
2. All questions are compulsory.
Q1 Answer the following in brief.
A You are a manager in chemical fertilizer industry. Your engineer reports 03
about energy saving opportunity for heating utility requirements. At
present, heating requirements are fulfilled through electric heaters. He
has two different options for the said problem viz. (a) waste heat recovery
and (b) solar thermal heating system. Since cost involve in these options
is not same and life of both the alternative is also different he is confused.
He seeks your opinion for correct option. How would you make decision?
Justify your decision.

An industry wishes to install a solar water heating system to preheat the

B makeup water supplied to the boiler. The cost of the system is Rs. 1 crore 10
and the annual savings are expected to be 45 kiloliters of LDO (cost Rs 60
per liter). The industry hurdle rate is 30%. Compute the SPP, NPV, IRR
and cost of energy saved. How will these indices change if accelerated
depreciation is permitted? Assume a corporate tax rate of 30% and take
the life of solar water heater as 20 years.

Q2 Evaluate the feasibility of a gasifier coupled with 30 kW diesel engine to 14

meet the electricity requirement of a village, as compared to diesel engine
generator system. Cost of diesel engine is Rs. 1,80,000. Cost of gasifier is
Rs. 6,60,000. Cost of generator is Rs. 1,00,000. Price of diesel is Rs. 70
per liter, Net CV of diesel is 40000 kJ/kg. BSFC for diesel engine is 260
g/kWh, O&M cost is 5% of total cost. Life of gasifier and generator is 20
years. The life of engine is 10 years. The Discount rate is 12%, load factor
is 70%, and diesel replacement is 50%. Calculate the cost of electricity
generation for the above case. Comment on your results.

Q3 Evaluate the economics of standalone remote electrification project. The 13

solar PV array has peak rating of 50 kW and an average output of 300
kWh/day. The battery rating is equivalent to 100 kWh of storage capacity.
The capital cost of module is Rs 20/W (p) and battery cost is Rs 5/Wh.
Estimate the total capital cost of the solar PV power plant. The O & M cost
is Rs. 0.4/kWh. Determine the cost of electricity generated and ALCC of
the PV plant with discount rate 12%. Take the life of the battery as 10
years and the PV array life as 20 years. What is the cost of electricity
generated from the plant? Would it be feasible to invest in the said system
if the government purchases electricity @ Rs 4/kWh?