Identification of Energy Conservation Opportunities

1. Fuel substitution : Identifying the appropriate fuel for efficient energy conversion.
2. Energy generation : Identifying efficiency opportunities in energy conversion equipment/utility such as captive power generation, steam generation in boilers, thermic fluid heating, optimal loading of DG set minimum excess air combustion with boilers/thermic fluid heating, optimising existing efficiencies, efficient energy conversion equipment biomass, gasifiers, co-generation, high efficiency DG sets, etc.
3. Energy distribution : Identifying efficiency opportunities network such as transformers, cables, switch gears and power factor improvement in electrical systems and chilled water cooling water hot water, compressed air etc.
4. Energy usage by processes : This is where the major opportunity for improvement and many of them are hidden. Process analysis is useful tool for process integration measures.

Technical and Economic feasibility :

The technical feasibility should address the following issues :

• Technology availability, space, skilled manpower, reliability, service etc.
• The impact of energy efficiency measure on safety, quality production or process.
• The maintenance requirements and spares availability.
• The Economic viability often becomes the key parameter for the management acceptance. The economic analysis can be conducted by using a variety of methods.
• Examples : Payback method, Internal Rate of Return method, Net Present Value method etc.
• For low investment short duration measures, which have attractive economic viability, simplest of the methods payback is usually sufficient. A sample worksheet for assessing economic feasibility is provided below :

• Equipments
• Civil works
• Instrumentation
• Auxilaries

2. Annual operating costs :

• Costs of capital
• Maintenance
• Manpower
• Energy
• Depreciation

3. Annual savings :

• Thermal Energy
• Electrical  Energy
• Raw material
• Waste disposal

Classification of Energy Conservation Measures :

• Based on energy audit and analyses of the plant a number of potential energy saving projects may be the These may be classified into three categories : 1. Low cost -high return 2.Medium cost-medium return 3.High cost-high return
• Normally, the low cost -high return projects receive priority Other projects have to be analyzed, engineered and budgeted for implementation in a phased manner.
• Projects relating to energy cascading and process changes almost always involve high costs coupled with his returns, and may require careful scrutiny before funds can be committed. 
• These projects are generally complex and may require long lead times before they can be implemented. Table 55 shows project priority guidelines.

 Table A: Project Priority Guidelines

Priority	Economical Feasibility	Technical Feasibility	Risk/Feasibility
A – Good	Well defined and attractive	Existing technology adequate	No Risk/Highly feasible
B – May be	Well defined  and only marginally acceptable	Existing technology may be updated, lack of confirmation.	Minor operating Risk/May be feasible
C –  Held	Poorly defined and marginally unacceptable	Existing technology is inadequate.	Doubtful
D –  No	Clearly not attractive	Need major breakthrough.	Not feasible