Unit 1.

General Aspects of Energy

Energy is one of the major inputs for the economic development of any country. In the case of the
developing countries, the energy sector assumes a critical importance in view of the ever increasing
energy needs requiring huge investments to meet them. Energy can be classified into several types
based on the following criteria:
• Primary and Secondary energy
• Commercial and Non commercial energy
• Renewable and Non-Renewable energy
Primary and Secondary Energy:-

• Primary energy sources are those that are either found or stored in nature. Common
primary energy sources are coal, oil, natural gas, and biomass (such as wood).
• Other primary energy sources available include nuclear energy from radioactive substances,
thermal energy stored in earth's interior, and potential energy due to earth's gravity.
• Secondary energy: Primary energy is transformed in energy conversion process to more
convenient forms of energy such as electricity, steam.

Fig1.1 Major Primary and Secondary Energy Sources

• The major primary and secondary energy sources are shown in Fig. 1.1. Primary energy sources
are mostly converted in industrial utilities into secondary energy sources; for example coal, oil or
gas converted into steam and electricity. Primary energy can also be used directly. Some energy
sources have non-energy uses, for example coal or natural gas can be used as a feedstock in
fertilizer plants.

Commercial Energy and Non Commercial Energy:-

Commercial Energy
• The energy sources that are available in the market for a definite price are known as commercial
energy.
• By far the most important forms of commercial energy are electricity, coal and refined
petroleum products. Commercial energy forms the basis of industrial, agricultural, transport and
commercial development in the modern world. In the industrialized countries, commercialized
fuels are predominant source not only for economic production, but also for many household
tasks of general population.
Examples: Electricity, lignite, coal, oil, natural gas etc.

Non-Commercial Energy
The energy sources that are not available in the commercial market for a price are classified as non-
commercial energy. Non-commercial energy sources include fuels such as firewood, cattle dung and
agricultural wastes, which are traditionally gathered, and not bought at a price used especially in
rural households. These are also called traditional fuels. Non-commercial energy is often ignored in
energy accounting. Example: Firewood, agro waste in rural areas; solar energy for water heating,
electricity generation, for drying grain, fish and fruits; animal power for transport, threshing, lifting
water for irrigation, crushing sugarcane; wind energy for lifting water and electricity generation.

Renewable and Non-Renewable Energy

• Renewable energy is energy obtained from sources that are essentially inexhaustible. Examples of
renewable resources include wind power, solar power, geothermal energy, tidal power and
hydroelectric power (See Figure 1.2). The most important feature of renewable energy is that it
can be harnessed without the release of harmful pollutants. Non-renewable energy is the
conventional fossil fuels such as coal, oil and gas, which are likely to deplete with time.

Figure 1.2 Renewable and Non-Renewable Energy

Global Primary Energy Consumption:-
1. Coal:-
➢ Reserves: 826 billion tonnes.
➢ Estimated life: 122 years.
➢ Location: reserves found in around 70 countries. The biggest coal reserves are in USA, Russia,
China, and India.

Fig1.3 Top 5 coal reserves countries.

2. Oil:-
➢ Reserves : 1258 billion barrels, 60% (Middle East)
➢ Estimated life: 15 years. (Non-middle east), 80 years. (Middle East)
➢ Location: Middle East & Non-middle east countries (Major).
 Fig1.4 World oil reserve countries.
3. Natural Gas:-
➢ Reserves : 185 trillion cubic meters, 60% (Middle east)
➢ Estimated life: 60 years.
➢ Location : Russia, Qatar, Iran, UAE, Saudi Arabia

Fig1.5 Top 5 Natural Gas reserve countries.

CURRENT ENERGY CONSUMPTION PATTERN IN INDIA:-

%
Primary
sharing
Sr. Type of Reserve Estimated energy
in Location
no. fuel in India life (R/P) consumption
world
of our country
reserve

58.6 Madhya Pradesh,

1. Coal Billion 114 Years Orisa, Jharkhand, 55 %
7.1
tonnes West Bengal.

Bombay high, Upper

5.8
2. Assam, Cambay,
Oil Billion 0.5 20 Years
Krishna-Godavari 31 %
barrel
Basin.
1.09
Natural trillion Gujarat, Assam,
3. 0.6 36 Years 8.6 %
gas cubic Nagaland.
meter
Sector Wise Energy Consumption in India

Fig1.6 Sector wise energy consumption.

The major commercial energy consuming sectors in the country are classified as shown in the Figure
1.6. As seen from the figure, industry remains the biggest consumer of commercial energy and its
share in the overall consumption is 49%. (Reference year: 1999/2000)

Energy Security
The basic aim of energy security for a nation is to reduce its dependency on the imported energy
sources for its economic growth. Energy security is defined as “the continuous ability of energy in
varied forms in sufficient quantities at reasonable prices”.
Some of the strategies that can be used to meet future challenges to their energy security are
➢ Reducing energy requirements
▪ Improving the efficiency of extraction of fossil fuels
▪ Improving fuel efficiency of new coal fired power plants by adopting new technology (i.e.
supercritical pulverized fuel fired boilers)
▪ Adopting energy efficiency and demand side management
▪ Promotion of public transport / mass transport (e.g. metro rail, light rail, monorail etc.) in
urban areas.
▪ Developing renewable energy sources especially solar and wind
➢ Substituting imported oil/gas with domestic alternatives
▪ Ethanol / Biodiesel as substitute
▪ Biomass gasification for heat or power as alternative to gas / coal
▪ Coal -to- oil technology as done in South Africa
➢ Diversifying energy supply sources
▪ Mix of fuel comprising of coal, gas , nuclear hydro and renewable with no dependence on any
particular fuel
▪ Sourcing oil / LNG from different countries
▪ Importing gas through pipelines passing through countries who also benefit
➢ Expanding energy resource and developing alternative energy sources
▪ Improved oil recovery (IOR) and Enhanced Oil Recovery (EOR) for improving exploitation of
reserves.
▪ Recovery of oil and gas from abandoned or marginal fields
▪ In-situ coal gasification
▪ Capturing Coal Bed Methane (CBM) which escapes from coal seams during mining
▪ Conversion of coal to oil
▪ Gas to liquid
▪ Stepping up exploration to find new reserves ( only one third of oil bearing area explored so
far )
▪ Equity oil, gas, coal from other countries.
▪ Stepping up energy intensive units (i.e. fertilizer plants) abroad.
▪ New domestic sources (nuclear fast bread reactor, thorium reactors, gas hydrates etc.)
▪ Promoting community biogas plants.
▪ Energy plantations.
Energy Conservation and its Importance
Coal and other fossil fuels, which have taken three million years to form, are likely to deplete soon.
In the last two hundred years, we have consumed 60% of all resources. For sustainable development,
we need to adopt energy efficiency measures. Today, 85% of primary energy comes from non
renewable and fossil sources (coal, oil, etc.). These reserves are continually diminishing with
increasing consumption and will not exist for future generations (see Figure 1.7).

Fig.1.7 Consumption of Fossil fuels

What is Energy Conservation?

• Energy Conservation and Energy Efficiency are separate, but related concepts. Energy
conservation is achieved when growth of energy consumption is reduced, measured in physical
terms. Energy Conservation can, therefore, be the result of several processes or developments,
such as productivity increase or technological progress.
• On the other hand Energy efficiency is achieved when energy intensity in a specific product,
process or area of production or consumption is reduced without affecting output, consumption
or comfort levels.
• Promotion of energy efficiency will contribute to energy conservation and is therefore an integral
part of energy conservation promotional policies.
• Energy efficiency is often viewed as a resource option like coal, oil or natural gas. It provides
additional economic value by preserving the resource base and reducing pollution.
• For example, replacing traditional light bulbs with Compact Fluorescent Lamps (CFLs) means
you will use only 1/4th of the energy to light a room. Pollution levels also reduce by the same
amount (refer Figure ). Nature sets some basic limits on how efficiently energy can be used, but
in most cases our products and manufacturing processes are still a long way from operating at
this theoretical limit. Very simply, energy efficiency means using less energy to perform the
same function.

The Benefits of Energy Conservation:-

Energy Efficiency Benefits
Industry Nation Globe
Reduce Green House Gases and
Reduce energy bills Reduce energy imports
other emissions
Avoided costs can be used for
Increase competitiveness
poverty reduction
Conservation of limited Maintains a sustainable
Increase productivity
resources environment
Improve quality
Improved energy security
Increase profits
Energy Management:-
Energy Management is judicious and effective use of energy to maximize profits (minimize costs)
and enhance competitive positions.
Objective:-
1. To minimize energy costs/ waste without affecting production and quality.
2. To minimize environmental effects.

Principles:-
1. Procure all the energy needed at the lowest possible price.
2. Manage energy use at the highest energy efficiency.
3. Reusing and recycling energy by cascading.
4. Use the most appropriate technology.
5. Reduce avoidable losses

Force Field Analysis

Before creating the action plan, it can be a useful exercise to clarify the goal to be achieved, and to
assess what barriers must be overcome and what influences exist in the organization that works
towards the achievement of the goal. These barriers and influences can be thought of as negative and
positive forces respectively. The steps involved in force field analysis are:
1. State the organizational goal and indicate the direction (say, left to right) that signifies
moving towards that goal: (for example, the goal might be "improve energy efficiency in the
assembly plant" or "reduce energy consumption in the facility for current occupancy levels".)
2. Identify barriers that tend to work against the achievement of the goal: these may be
internal to the organization (for example, a lack of expertise related to energy management)
or external (for example, energy rate structures or government regulation).
3. Identify positive influences or forces that tend to work towards achievement of the goal;
these may also be internal or external.
4. Estimate the relative strength of the negative and positive forces (for simplicity, we may
want to identify them as low, medium and high strength).
5. Prioritize those forces that can be strengthened or weakened through your action plan with
the greatest effect on achieving the goal (Tip: It is usually more effective to attempt to
minimize negative forces than to try to strengthen forces that are already positive). A typical
force field analysis chart is shown in below:

Goal:- to reduce energy consumption per unit of production

Positive Force Negative Force
(Acting towards achievement of the goal) (Acting against achievement of the goal)
High price of energy Absence of corporate energy policy
Energy efficiency technology available Lack of awareness throughout company
Incentive for high power factor Insufficient skills and knowledge available
Top management commitment to energy Competing corporate priorities
conservation
Energy is relatively high energy component of Insufficient financial resources to fund measures
product cost
Energy Action Planning:-

Fig1.7 Steps in Energy Action Planning.

1. Top Management Commitment and Support
• To allocate manpower and funds to achieve continuous improvement.
• To establish the energy management programme.
• Appoint energy manager.
• Form a dedicated energy team or committee.
• Institute an energy policy.
• Create awareness among employs
• Active participation in meetings

2. Assess Energy Performances

• Understanding current and past energy use helps an organization identify opportunities to improve
energy performance and gain financial benefits.
• Key aspects include data collection and management (establishing baseline, analyse energy
pattern through quantitative and qualitative review, benchmarking).
• Conducting technical assessment and audit.

3. Set Goals
• To develop effective performance goals, determine scope, estimate potential for improvement and
finally establish goals.
• Organizational level: - Setting goals at this level provides a big picture of how the entire
organization wants to improve. Organization-wide goals provide a framework for communicating
the success of energy management both internal and external audiences.
• Facility: - At this level, goals may vary to take into account the performance of specific facilities
based on benchmarking results or an energy audit. Facility level goals are designed to help the
broader organization to meet its goals.
• Process or equipment: - Some organizations may find it useful to establish goals for specific
process lines and equipment when energy use is concentrated in specific areas.
• Time Periods:
A) Short-term goals: - Annual goals provide the necessary markers for tracking and reporting
progress on a regular and ongoing basis.
B) Long-term goals:- Long-term goals are usually organization-specific and may be shaped by
• Internal rates of return
• Internal planning horizons and guidelines
 • Organizational strategic plans
• Commitments to voluntary environmental initiatives
4. Create Action Plan
With goals in place, the organization is now ready to develop a roadmap to improve energy
performance. The steps below outline a basic starting point for creating a plan
• Define Technical Steps and Targets
• Evaluate energy audit report and current operating parameters.
• Force field analysis
• Define Technical Steps and Targets
• Determine Roles and Resources
5. Implement Action Plan
Gaining the support and cooperation of key people at different levels within the organization is an
important factor for successful implementation of the action plan in many organizations.
• Create communication plan -Develop targeted information for key audiences about your energy
management program.
• Raise awareness -Build support at all levels of your organization for energy management
initiatives and goals.
• Build capacity -Through training, access to information, and transfer of successful practices,
procedures, and technologies, you can expand the capacity of your staff.
• Motivate -Create incentives that encourage staff to improve energy performance to achieve goals.
• Track and monitor -Using the tracking system developed as part of the action plan to track and
monitor progress regularly.
6. Evaluate Progress
Evaluating progress includes formal review of both energy use data and the activities carried out
as part of the action plan as compared to your performance goals. Key aspects are Measure
results, Gather tracking data, Benchmark.
7. Recognize Achievements
Providing and seeking recognition for energy management achievements is a proven step for
sustaining momentum and support for your program. Providing recognition to those who
helped the organization achieve these results motivates staff and employees and brings positive
exposure to the energy management program.

Energy Manager: Responsibilities and Duties to be assigned Under the Energy Conservation
Act, 2001.
Responsibilities:-
• Prepare an annual activity plan and present to management concerning financially attractive
investments to reduce energy costs
• Establish an energy conservation cell within the firm with management's consent about the
mandate and task of the cell.
• Initiate activities to improve monitoring and process control to reduce energy costs.
• Analyze equipment performance with respect to energy efficiency
• Ensure proper functioning and calibration of instrumentation required to assess level of energy
consumption directly or indirectly.
• Prepare information material and conduct internal workshops about the topic for other staff.
• Improve disaggregating of energy consumption data down to shop level or profit center of a firm.
• Establish a methodology how to accurately calculate the specific energy consumption of various
products/services or activity of the firm.
• Develop and manage training programmed for energy efficiency at operating levels.
• Co-ordinate nomination of management personnel to external programs.
• Create knowledge bank on sectoral, national and inter-national development on energy efficiency
technology and management system and information denomination
• Develop integrated system of energy efficiency and environmental up gradation.
• Co-ordinate implementation of energy audit/efficiency improvement projects through external
agencies.
• Establish and/or participate in information exchange with other energy managers of the same
sector through association
Duties:-
• Report to BEE and State level Designated Agency once a year the information with regard to the
energy consumed and action taken on the recommendation of the accredited energy auditor, as
per BEE Format.
• Establish an improved data recording, collection and analysis system to keep track of energy
consumption.
• Provide support to Accredited Energy Audit Firm retained by the company for the conduct of
energy audit
• Provide information to BEE as demanded in the Act, and with respect to the tasks given by a
mandate, and the job description.
• Prepare a scheme for efficient use of energy and its conservation and implement such scheme
keeping in view of the economic stability of the investment in such form and manner as may be
provided in the regulations of the Energy Conservation Act.

Institute an Energy Policy

Energy policy provides the foundation for setting performance goals and integrating energy
management into an organization's culture and operations.
Energy Policy provides the foundation for successful energy management. It formalizes top
management's support and articulates the organization's commitment to energy efficiency for
employees, shareholders, the community and other stakeholders.
Typical Format of an Energy Policy
• Declaration of top management's commitment to, and senior and middle management's
involvement in, energy management.
• Statement of policy.
• Statement of objectives, separated into short and long-term goals.
Actions
• Have the CEO or head of the organization officially issue the policy
• Involve key people in policy development to ensure cooperation
• Tailor the policy to the organization's culture
• Make it understandable to employees and public alike
• Consider the skills and abilities of management and employees
• Include detail that covers day-to-day operations
• Communicate the policy to all employees, and encourage them to get involved

Example of Energy Policy Statement

Rashtriya Ispat Nigam Limited

Visakhapatnam Steel Plant
ENERGY POLICY
We, at Visakhapatnam Steel Plant, are committed to optimally utilize various forms of energy in a
cost effective manner to effect conservation of energy resources. To accomplish this we will:
• Monitor closely and control the consumption of various forms of energy through an effective
Energy Management System.
• Adopt appropriate energy conservation technologies.
• Maximize the use of cheaper and easily available forms of energy.
• Make energy conservation a mass movement with the involvement of all employees.
• Maximize recovery of waste energy.
• Reduce Specific Energy Consumption by 1% per year by 2010.
Date Dr. B.N. Singh
14-06-2002 Chairman-cum-Managing Director