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Green Business Ideas : India should promote NSM & NMSH to make NMEEE a success


The Prime Minister of India had launched The National Action Plan on Climate Change (NAPCC) on 30th June 2008.It outlines a national strategy that aims to enable the country adapt to climate change and enhances the ecological sustainability of India‘s development path. It stresses that maintaining a high growth rate is essential for increasing living standards of the majority of people of India and reducing their vulnerability of the impacts of climate change.

Eight National Action Plan were mooted -representing multipronged, long term and integrated strategies for achieving key goals in the context of climate change. The National Missions are to be institutionalized by the respective Ministries  and will be organized through inter-sectoral groups. The first 3 are already operational.

The National Missions are –

National Solar Mission,
National Mission on Enhanced Energy Efficiency, (1)
National Mission on Sustainable Habitat,
National Water Mission,

National Mission for Sustaining the Himalayan Eco-system,
National Mission for a Green India,
National Mission for Sustainable Agriculture and
National Mission on Strategic Knowledge for Climate Change.

In this article we shall talk about the second action plan – National Mission on Enhanced Energy Efficiency (2)(NMEEE). And how we could look at it from a completely different perspective. However, let us first understand this beautiful instrument created to combat Climate change and offer economic opportunities.

The Eleventh Plan Outlay for Energy Conservation & NMEEE schemes was Rs 8.6 billion to promote energy conservation measures in the country. The Union Cabinet had approved the implementation plan of the National Mission for Enhanced Energy Efficiency (NMEEE) with a budgetary support of Rs.23.54 billion required for implementation of the Mission with effect from 2010-11. It also approved the creation of two new posts of Deputy Director General (Joint Secretary level) in the Bureau of Energy Efficiency. The NMEEE initiatives will avoid capacity addition of about 19,598 MW. It would result in fuel savings of around 23 million tonnes of oil equivalent (MTOE) and reduction in Green House Gasses (GHG) emissions of 98.55 million tonnes. The National Mission seeks to create and sustain markets for energy efficiency in the entire country which will benefit the country and the consumers. If one reads the detailed paper on NMEEE, it focus is more on Demand Side Management ( DSM ) of 9 Energy Intensive Industries Identified to be known as Designated Consumers (DCs) – Power (Thermal) 104.1 MTOE ; Integrated Steel 28.0 MTOE; Cement 11.87 MTOE;  Fertilizer 7.86 MTOE; Textile 1.62 MTOE; Aluminum 7.73 MTOE; Paper 2.09 MTOE; Chlor-­Alkali 1.06 MTOE; which totals to  164.15 MTOE (Million Ton of Oil Equivalent ) in energy. The implementation plan of NMEEE seeks to upscale the efforts to create the market for energy efficiency, and is estimated  about Rs 7,500 billion.

NMEEE can be divided into   PAT; MTEE; EEFP & FEED .(3)

a) A market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries. The trading of energy saving certificates would facilitate this process { Perform Achieve and Trade        ( PAT) }.

b) Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. {Market Transformation for Energy Efficiency (MTEE) }.

c) Creation of mechanisms that would help finance demand side management programs in all sectors by capturing future energy savings. {Energy Efficiency Financing Platform (EEFP)}.

d) Developing fiscal instruments to promote energy efficiency namely Framework for Energy Efficient Economic Development (FEEED)

The overall idea of NMEEE is to achieve the following –

• Protecting the poor and vulnerable sections of society through an inclusive and sustainable development strategy sensitive to climate change.
• Achieving national growth objectives through a qualitative change in direction that enhances ecological sustainability, leading to further reduction in emissions of GHGs.
• Devising efficient and cost-effective strategies for end-use demand-side measures.
• Deploying appropriate technologies for both adaptation to and mitigation of the adverse effects of emissions of GHGs extensively as well as at an accelerated pace.
• Engineering new and innovative forms of market, regulatory, and voluntary mechanisms to promote sustainable development.

While all these are superlative and having met the core team of NMEEE at Chennai, during one of the stake-holders meet and  have immense respect for there depth of knowledge and dedication; let us look at what are the issues small consultation companies or independent Energy Auditors are facing to implement NMEEE and what can be done to popularize it.

The mainframe of NMEEE is PAT, which is focused at  Specific Energy Conservation (SEC), and this is complex to map;  because the energy usage pattern varies widely in industries of a particular sector due to various diversities like -Scale of Production (Installed Capacities); Use of Raw Material; Process Technology; Vintage of Technology; O & M Practices; Type of Product Output etc. While this is a great idea and business potential, barring the very large industries which find it feasible to adopt the PAT mechanism, the Small & Medium Scale industry of the same sector are not yet showing much enthusiasm. Primarily because even with the MTEE & EEFP, industry can not overnight stop production and upgrade technology.  So while the potential energy saving in the industrial sector is 98 billion KWh with a business potential of Rs. 2,400 billion; this target which we are thinking will be achieved by 2014 is a little difficult  to meet, more so in the current economic situation.

Further, Energy Audits of commercial and industrial facilities require a large amount of time to gather data and process them to offer the solution required.  All types of utility bills needs to be collected, for a period between one to three years, for analysis of pattern of use in different seasons, and  then certain benchmark need to be found. The performance of the any facility depends on various factors such as changes in weather, occupancy  or production levels and  this needs to be compared with design intent and similar type of facility which is used for comparison, to identify any error which is then used as clues for further analysis. Major energy loads are identified and analyzed and sometime spot data logging or sub-metering is required for specific energy loads or equipment to gather more data. For more advanced analysis, computer simulation analysis of the building and load patterns may be involved.

Trained and experienced engineers are required for much of this analysis, which further increases cost. Small consultancy companies  and independent energy auditors therefore find the going tough to convince industry owners to do an energy audit and more so where some of  the medium scale industry owner seeks a performance guarantee on the solutions which the consultants can provide, even before an audit is commenced.

Therefore to continue the course that has been set under NMEEE, the smaller independent auditing agency one must  look at the lowest hanging fruit that is Buildings & Lighting. One must focus at Lighting – 70 billion KWh translating to Rs. 400 billion (source- BEE); Buildings – 3.52 billion KWh ( source ADB )  which  Rs. 120 billion in business opportunities. Now if we add to it the administrative blocks of the 9 core DC identified, the business opportunity expands and Roof-top or captive solar and Green Building norms can get inducted. Because here is something which perhaps the policy makers have not looked into, that is, every industry big or small have an administrative block, which  falls under the Building sector. Although  this finds a mention in NMEEE but is not a core focus area yet. And all large facilities have lighting which independently mapped is a large segment.

It would make a great Green Business Idea should the authorities make mandatory 10% reduction in energy across all sectors and not limit the first 10% to come from the SEC in the large DC’s but be mapped from their building and lighting.  Especially Baseline energy consumption and emissions from commercial buildings, data centers. In fact Primary stakeholders for energy efficiency are  Commercial and residential buildings, which also form a part of large DC’s. For example if we take any of the “Navratna” ( nine gems ) industry, say Iron & Steel Plant, it has administrative blocks within the boundary walls of the plant, along-with  a whole residential township set up for its employees whose power consumption only in lighting and buildings could rival that of any Tier -II & III cities. In fact they are mini cities themselves. It would give impetus to two other missions under the NAPCC, namely the National Solar Mission and National Mission on Sustainable Habitat.

If the core idea of the National Mission is to bring in Enhanced Energy Efficiency, it must allow and support the Green Building criteria sooner than later and let it get the advantages of  EEFP & FEED enshrined in the NMEEE.

Courtesy: All images displayed are from the internet. Thanks to all who have created them

 

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Obama’s Better Building Initiative – a lesson for India


Some where in February 2011 President Obama of the USA, lauched the Better Building Initiative. He laid out his vision for winning the future by investing in innovative clean energy technologies and doubling the share of electricity from clean energy sources by 2035. Alongside that effort, the President is proposing new efforts to improve energy efficiency in commercial buildings across the country. Tax breaks, grants and loan guarantees will be among the initiatives to increase energy efficiency in commercial buildings by 20 percent in the next ten years. The President’s Better Buildings Initiative will make commercial buildings 20 percent more energy efficient over the next decade by catalyzing private sector investment through a series of incentives to upgrade offices, stores, schools and other municipal buildings, universities, hospitals, and other commercial buildings. This initiative builds on USA’s investments through the American Recovery and Reinvestment Act (ARRA), and its  continued commitment to passing the President’s proposed “HOMESTAR” legislation to encourage American families to make energy saving upgrades in their homes. Improving energy efficiency in  buildings can create jobs, save money, reduce USA’s dependence on foreign oil, and make its  air cleaner.

In India we started practising LEED about 6 years ago and in the last 2 years also developed the National rating for Energy Efficient Buildings – GRIHA. We were perhaps the first few who understood the importance of Climate change and ratified the Kyoto protocol. In a poll on awareness about global warming, India has a rating of above 50%. Yet the USA which has not signed the Kyoto protocol and perhaps is one of the biggest polluter would surpass and excel India in its effort to make Climate resilient cities.

Simply because of the failings of our political class. The seer arrogance and blinkered approach it has towards any fresh ideas and its tendency to pat itself on the back on presumed achievements. The Government talks of creating world-class cities and hardly any original thought is applied, confusing and dogmatic approach is taken towards any town-planing which stifles growth and  breeds corruption.

If the Government chooses, it can make an effort to redevelop our cities in the same lines of President Obama, and give a new lease of life to our overburdened metropolises and at the same time create new job opportunities.The 12th JNNURM Jawaharlal Nehru National Urban Renewal Missionis on the anvil and serious thought on these lines must be given if we wish to create a safe and economically vibrant country.

 

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Building A Low Carbon Economy with Energy Efficient Buildings


GHG emissions from building construction, reno...
Image via Wikipedia

The building sector can and should play a role in achieving the deep GHG reductions that science tells us are necessary to combat the threat of global warming. The building sector contribution to GHG emissions is mainly driven by its end use of, or demand for, electricity. This is a key difference from many other sectors where the main issue is emissions from the supply of energy. The building sector as a whole could reduce its share of GHG emissions by 30-35 per cent whilst accommodating growth in the overall number of buildings by 2050. This can be achieved by using today’s technology to significantly reduce the energy needed by residential and commercial buildings to perform the same services. For example, by replacing equipment with more energy-efficient models, at the natural replacement rate, and upgrading the performance of the building shell.

Detailed ‘bottom up’ analysis of energy efficiency opportunities suggests that net cost savings can be achievable in the medium to long-term. Rather than a cost per tonne of GHG abatement, many energy efficiency options have a positive financial payback in addition to providing abatement benefits. The payback period, can vary from a matter of months to many years. This finding is consistent with a large collection of case studies within the Country and overseas. When coupled with a broad-based GHG abatement target and a supporting policy environment, additional energy efficiency investments by the buildings sector would reduce the costs of change for the building sector and the economy at large.

Despite being cost neutral in the medium to long-term, achieving the additional GHG abatement action from the building sector faces challenges as well as opportunities.

1.Adopting energy efficiency strategies requires upfront investment by businesses and households to become more energy-efficient.

2.The benefits, or payback of these investments, are gradual, accruing over the medium to long-term, as savings on energy bills.

3.The building sector will need some additional incentives to overcome the impediments to change. These need to address a range of issues, such as the need to spur behavioural change, particularly to encourage adoption, and to offset the required upfront, direct capital expenditures.

4.Essentially, there is a need to encourage the rebuilding of our current building stock to upgrade the energy efficiency of assets within buildings to deliver a more   sustainable outcome.

5.The pay-off from investing in the energy efficiency potential of the building sector would flow through the entire economy by reducing the cost that others would face to  achieve their reduction in GHG emissions.

It is vital for government and the community at large to recognize the evidence showing the valuable role that demand side management and energy efficiency in the building sector can play in GHG abatement. Significant gains are available now without the need to invent and apply new technologies. They do not involve substantial risk or uncertainty and would provide significant gains now and into the future.

THE BUILDING SECTOR

The building sector can be viewed as being comprised of two broad elements:

Residential buildings — housing the population; and

Commercial buildings — housing a range of activities including retail trade, accommodation, business services, government and government agencies, recreation and cultural services and industry, which represents around two-thirds of national employment.

Component parts of the building sector are noted in chart

Residential Building Commercial Building
Detached housesAttached dwellingsBuildings containing two or more soleoccupancy units Wholesale tradeRetailAccommodation, cafes and restaurantsCommunication servicesFinance and insuranceProperty and business servicesGovernment administration and

Defence

Education

Health and community services

Cultural and recreational services

Personal and other services

The estimate of greenhouse gas emissions due to energy consumption in the building sector takes account of:

1.  the amount of energy consumed;

2. the mix of fuels used;

3. the average greenhouse gas emissions from the different fuels (electricity is treated as a fuel); and

4.upstream emissions from transmission and other activities.

The electricity consumed within a building is only a part of the energy used to support that demand. A large amount of electricity and greenhouse gas emissions is also involved in distribution, transmission and generation. When reducing demand for electricity it is practical to eliminate the need for this upstream energy use and GHG emissions.

A larger proportion of GHG emissions are attributable to the building sector than its share of energy use because the building sector uses greenhouse gas intensive energy. Notably the building sector energy end use is dominated by electricity consumption which is dominated by coal fired generation located at the end of long transmission networks.

Emissions from the building sector are broadly of the same scale as emissions produced by the entire transport sector.

THE ABATEMENT POTENTIAL

The building sector could reduce its GHG emissions by 30–35 per cent by 2050 on an economical basis. Economic in this context means that the initial costs would be offset — and in many cases be more than offset — by subsequent energy savings over time.

The potential for increased energy efficiency in the building sector has been estimated through a bottom up analysis to identify energy efficiency opportunities in the building sector. The analysis:

1.Examine like-with-like replacement of energy inefficient appliances and building services with more energy-efficient equivalents;

2.focus on additional application of existing technologies;

3.take into account the costs of change and the expected benefits from reduced energy costs; and

4.factor in expected population growth and sustained economic growth which tends to bring pressure for increased energy use.

For the potential energy efficiency investments a much wider range of options exits. This set, however, generally represents the diversity of existing, mature technologies.

In the residential sector changes can be achieved through:

1. substitution for more energy-efficient light fittings;

2. greater use of natural light;

3.substitution for more efficient refrigeration;

4.adoption of more efficient hot water appliances with solar where possible;

5.adoption of appliances with a low standby energy use;

6. the introduction of more efficient heating and cooling mechanical systems; and better insulation.

In commercial buildings substantial savings to both costs and greenhouse gas emissions could be generated by:

1. improving air conditioning systems efficiency and including ‘economy’ cycles;

2.use of natural ventilation where possible;

3. the use of more efficient office appliances;

4.better insulation;

5.improved heating and ventilation;

6.the use of efficient light fixtures;

7.upgrading to more efficient water heating systems; and

8.where possible use of co-, and tri-generation (that is, using heat discharged from on-site power generation for water heating, and for absorption air-conditioning etc).

Energy efficiency measures would take time to be adopted by households and business. Analysis of the technical possibilities suggests the potential for GHG abatement is between 57 Mt and 66 Mt per annum by 2030. This would increase to between 86 Mt and 98 Mt by 2050.

Facts

• Buildings’ share of final energy consumption: 30-40%

• Global CO2 emissions from energy in buildings (2005): 9Gt

• Estimated growth by 2050 in all 6 EEB regions: 76%

• Growth in global population by 2050: 2.7 billion or 42%

Many energy efficiency projects are feasible with today’s energy costs. At energy prices proportionate to oil at US$ 60 per barrel, building energy efficiency investments in the six EEB regions (Brazil, China, Europe, India, Japan and the US) studied, totaling US$ 150 billion annually, will reduce related energy use and the corresponding carbon footprint in the range of 40% with five-year discounted paybacks for the owners. A further US$ 150 billion with paybacks between five and 10 years will add 12 percentage points and bring the total reduction to slightly more than half.

There are three key elements to

achieving progress:

– Use less energy

– Make more energy (locally)

– Share surplus energy (through an intelligent grid).

The most significant, long-term gains will come from using less energy.

Note: The data has been collected form various noted publications and condensed for easy understanding.

 

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