Cement, Energy and Environment

ENERGY EFFICIENCY & CONSERVATION L____ E_n_e_rg_y_E_ff_i_c_ie_n_cy ____ ~l I ~---------------------J Energy Conservation NEW BILL TO HIT BOTTOM LINES OF ENERGY INEFFICIENT FIRMS: STUDY In order to prevent erosion of their bottom lines, Indian companies would have to take serious action to max1m1ze energy efficiency in the wake of the new energy conservation legislation passed by Parliament recently. The new legislation - Energy Conservation (Amendment) Bill 2010- aims at g1v1ng a push to energy efficiency drive in the country. It has provisions for kick starting PAT scheme, which lays down efficiency targets for energy intensive industries over a period of three years. According to Cll, companies unable to achieve the target will suffer erosion of bottom lines as they would have to pay for the price of energy saving certificates. Falling that, they would attract a hefty penalty. The proposed mandatory PAT scheme will cover 714 installations (termed as designated consumers) in nine energy intensive Indian industrial sectors (thermal electric power generation, fertilizers steel, cement, pulp and paper, aluminium, chlor– alkali, textiles and railways). The government has notified the designated consumers covered by the scheme. Alongside major industrial energy consumers (downstream), the PAT scheme also includes large power stations (upstream) as these are large users of energy in their own right. Courtesy: TERI (The Energy Resources Institute) Newswire, 1-15 October 2010, Pp 3-4. Cll MEET CALLS FOR ENERGY CONSERVATION In the context of globalization offered by energy and challenges climate change , efficiency and environment conservation would be a distinctive trait for companies to stand out, excel and be globally competitive. The country could achieve an energy efficiency of 25% - 30% and it should be a joint effort by various sectors, said energy experts at the Energy Efficiency Summit 2010, organized by the Confederation of Indian Industry. Asserting this fact, the speakers pointed out that the thermal systems could save 25% - 50% in energy across all industries. While compressed air systems, which consume 5000 MW - 6000 MW a year, had potential to save about 1,200 MW, electrical systems could save about 2,500 by the adoption of simple energy– efficiency measures. All these savings could be achieved by introducing simple systemic changes costing about Rs. 2 crore for one MW of saving compared to more than Rs 4 crore needed for the generation, transmission and distribution of thermal power. Courtesy: The Financial Express Chennai, 04. 09.2010. PARLIAMENT PASSES ENERGY CONSERVATION (AMENDMENT) BILL 2010 The Energy Conservation (Amendment) Bill 2010, intending to provide for establishing Bureau of Energy Efficiency (BEE), a statutory authority to enforce the Energy Efficiency and conservation measures was passed by Parliament with the Rajya Sabha approving the Bill. The Bill seeks to provide for establishing the BEE merging the existing Energy Management Centre to effectively coordinate with designated consumers and agencies performing such functiof.ls and exercise necessary powers for efficient use and conservation. The legislation also confers powers with the Central and State governments for enforcing provisions of the ACT, establish Energy Conservation. Funds impose penalties for contravening the provisions of Act. Shri Bharatsinh Solanki, Minister of State for Power said that the government would carry out sustained campaign for saving and conserving the energy in the next two to three years and would aid and develop alternative sources of energy like solar and wind in a big way. The Bill also empowers the Centre to issue Energy Saving certificate of designated consumers, whose energy consumption was less than the prescribed norms and enable the designated consumers, whose consumption exceed the norms. These certificates would be traded within the country. 4 1