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DCCI TNA Workshop and Activity Progress

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The document discusses energy efficiency in Nepalese industries. It notes that industries face challenges of unreliable electricity, expensive fuel, and aged technology. The Energy Efficiency Center (EEC) was established under the Nepalese Energy Efficiency Programme to provide energy auditing and technical services to industries. To date, the EEC has conducted audits of 22 industries and identified potential electrical savings of 15-25% and thermal savings of 20-30%. The long-term strategy is to continue providing these services and building capacity to promote sustainable energy efficiency.

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COMPONENT 3: ENERGY EFFICIENCY IN INDUSTRIES Energy Efficiency Center Energy & Environment Division FNCCI Dr. Uttam kunwar, Project Manager 05 August 2013 Kathmandu Brief Status Report on

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Industrial Energy use Scenario & Context Operation Plan and Progress Organizational & Management Structure Institutional, functional and financial sustainability Table of Content

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Nepalese Industrial Context Survival challenges  Nepalese Industries – Security  Electricity reliability – productivity loss by 40%  Expensive fuel ~ over Rs.33 -40 /unit cost  Aged technology  Limited technical knowledge

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Kathmandu,13.93% Bhaktapur,3.84% Lalitpur, 5.47% Kanchanpur,2.89% Morang,8.46% Jhapa,3.98% Parsa,6.36% Rupandehi,6.33% Sunsari,6.28% Bara,5.41% Kaski,4.12% Kailali,3.31% Chitwan,2.89% Banke,2.72% Nawalparasi,2.13% Dang,1.51% Kapilbastu,1.49% Makwanpur,1.60% Saptari,1.74% Dhanusha,1.93% Industrial cluster in the country 100 % = 4310 Industry Establishments source NEEP

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Energy Use in Industries Boilers 62% Motor Drives 8% Lighting 1% Furnace & Kiln 29% Source: WECS

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Energy Efficiency & Context  Industrial level awareness bandwidth is wide.  Resistance to change: attitude  Policy & Enforcement!!  Technology: Process efficiency & maintenance

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NEEP Program Nepalese Energy Efficiency Programme (NEEP) Govt. of Nepal and Govt. of Germany Joint Collaboration Component 3: Energy Efficiency in Industries Energy Efficiency Centre (EEC) FNCCI

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Mission Objective  to provide quality Energy Efficiency services to industrial community : 8 sector 40 Ind. 8

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APRIL 2010: BUSINESS PLAN & OPERATION PLAN DEVELOPED JULY 2010: EEC FORMALIZED by 1ST CC DECEMBER 2011: BASELINE WORK OF 200 IND. JANUARY 2012: TECHNICAL BACKSTOPPING FROM INTEGRATION STARTED Key Mile Stones

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EEC Operation Plan Work Package - 1 Work Package - 2 Work Package -3 Outputs  EEC established  Data base on energy use  Knowledge management center  Energy audit services  Networking with regional organization Outputs:  Auditor training  Energy audit report & Manual  Accreditation of training Outputs:  Quality control of report & Capacity development of DCCI & stakeholders  Promotional services to banks, industry and govt.  Technical arm to support to Govt. in EE policy formulation

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Progress till date WP-1 Present status August 2013 WP-2 Present status August 2013  EEC fully functioning  On going work.  WWW.eec-fncci.org will be launched in Aug.  16 Manufacturing  1 Service  2 Tea  3 Brick  Implementation –5  Cogeneration – Sept.  2 EA trainee participating in each audit work  22 EA  12 Final report  10 draft  5 imp plan  FNCCI-NPC Present status May 2013  Sector specific on going  MOU with 10 DCCI  EE cell established  Tec. support to 2 DCCI NIDC Bank fund manager-KfW, grants Com.1 Opt. plan

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Estimated Saving Potential Based on audit : Number of industries participated: 22  Identified Energy saving potential:  Electrical ~ 15-25 %  Thermal ~20-30%

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Long term strategy for sustainable EE services to industries Achievements:  EEC-FNCCI strongly committed to provide EE services to Ind. and has internalized the ownership of EE activity  Trained & experienced 45 EA in market, + 2 with EEC  Ind. Sensitized and Willingness to participate in EA  Experience gained, networking with ind.  EE cell established in selected 10 DCCI Opportunities • EE services for industries available in country

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Challenges for long term sustainable NEED for sustainability  Financial support for sector pilot ind. to produce multiplier effect:  Continued support to industry for implementation of recommendation  EA equipment with EEC for continued EE services to Ind. / avail services of trained EA: guided by NEEP – PPP Concept  Capacity development of EE cell in DCCI  Continued support to take EA to wider circle of Ind.(sector and size)

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Thank you! eec@fncci.org Uttam.kunwar@fncci.com

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Economic Feasibility in Million NPR Category Total Saving, NPR Total Investment, NPR Avg. payback period, month Short term <1 yr. 129.36 42.38 Range 1 to 34 months Indushanker: PB over 85 months Mid term <1 to 3 yr 36.55 67.21 Long term >3 yr 127.06 920.88 Long term: invest 900 mill slide 12

More Related Content

DCCI TNA Workshop and Activity Progress

  • 1. COMPONENT 3: ENERGY EFFICIENCY IN INDUSTRIES Energy Efficiency Center Energy & Environment Division FNCCI Dr. Uttam kunwar, Project Manager 05 August 2013 Kathmandu Brief Status Report on
  • 2. Industrial Energy use Scenario & Context Operation Plan and Progress Organizational & Management Structure Institutional, functional and financial sustainability Table of Content
  • 3. Nepalese Industrial Context Survival challenges  Nepalese Industries – Security  Electricity reliability – productivity loss by 40%  Expensive fuel ~ over Rs.33 -40 /unit cost  Aged technology  Limited technical knowledge
  • 5. Energy Use in Industries Boilers 62% Motor Drives 8% Lighting 1% Furnace & Kiln 29% Source: WECS
  • 6. Energy Efficiency & Context  Industrial level awareness bandwidth is wide.  Resistance to change: attitude  Policy & Enforcement!!  Technology: Process efficiency & maintenance
  • 7. NEEP Program Nepalese Energy Efficiency Programme (NEEP) Govt. of Nepal and Govt. of Germany Joint Collaboration Component 3: Energy Efficiency in Industries Energy Efficiency Centre (EEC) FNCCI
  • 8. Mission Objective  to provide quality Energy Efficiency services to industrial community : 8 sector 40 Ind. 8
  • 9. APRIL 2010: BUSINESS PLAN & OPERATION PLAN DEVELOPED JULY 2010: EEC FORMALIZED by 1ST CC DECEMBER 2011: BASELINE WORK OF 200 IND. JANUARY 2012: TECHNICAL BACKSTOPPING FROM INTEGRATION STARTED Key Mile Stones
  • 10. EEC Operation Plan Work Package - 1 Work Package - 2 Work Package -3 Outputs  EEC established  Data base on energy use  Knowledge management center  Energy audit services  Networking with regional organization Outputs:  Auditor training  Energy audit report & Manual  Accreditation of training Outputs:  Quality control of report & Capacity development of DCCI & stakeholders  Promotional services to banks, industry and govt.  Technical arm to support to Govt. in EE policy formulation
  • 11. Progress till date WP-1 Present status August 2013 WP-2 Present status August 2013  EEC fully functioning  On going work.  WWW.eec-fncci.org will be launched in Aug.  16 Manufacturing  1 Service  2 Tea  3 Brick  Implementation –5  Cogeneration – Sept.  2 EA trainee participating in each audit work  22 EA  12 Final report  10 draft  5 imp plan  FNCCI-NPC Present status May 2013  Sector specific on going  MOU with 10 DCCI  EE cell established  Tec. support to 2 DCCI NIDC Bank fund manager-KfW, grants Com.1 Opt. plan
  • 12. Estimated Saving Potential Based on audit : Number of industries participated: 22  Identified Energy saving potential:  Electrical ~ 15-25 %  Thermal ~20-30%
  • 13. Long term strategy for sustainable EE services to industries Achievements:  EEC-FNCCI strongly committed to provide EE services to Ind. and has internalized the ownership of EE activity  Trained & experienced 45 EA in market, + 2 with EEC  Ind. Sensitized and Willingness to participate in EA  Experience gained, networking with ind.  EE cell established in selected 10 DCCI Opportunities • EE services for industries available in country
  • 14. Challenges for long term sustainable NEED for sustainability  Financial support for sector pilot ind. to produce multiplier effect:  Continued support to industry for implementation of recommendation  EA equipment with EEC for continued EE services to Ind. / avail services of trained EA: guided by NEEP – PPP Concept  Capacity development of EE cell in DCCI  Continued support to take EA to wider circle of Ind.(sector and size)
  • 16. Economic Feasibility in Million NPR Category Total Saving, NPR Total Investment, NPR Avg. payback period, month Short term <1 yr. 129.36 42.38 Range 1 to 34 months Indushanker: PB over 85 months Mid term <1 to 3 yr 36.55 67.21 Long term >3 yr 127.06 920.88 Long term: invest 900 mill slide 12