Nepalese industries offer a huge potential to cut production cost by using energy more efficiently. It is estimated that around 15% of electrical and 30% of thermal energy could be saved in eight energy intensive industrial sector. This presentation contains the result of a study conducted by German Development Cooperation (GIZ) among 200 Nepalese industries in 2012.

1. Result of Baseline Study of Selected
Sector Industries to assess the Potentials
for more Efficient use of Energy
Gyanendra P. Upadhyay
Local Long Term Expert, Energy Efficiency

2. Background
 Scope for efficient use of energy in Nepalese
industries.
 GON and GOG signed agreement for NEEP to
promote efficient use of energy
 GIZ and WECS as implementing agencies –
FNCCI has established EEC
 Consulting Company awarded by GIZ to
conduct a baseline study of industries
comprising eight sectors of industries namely
Cement, Pulp & Paper, Food, Metal, Soap &
chemicals, Hotel, Brick, and Cold storage

3. Selection
S.
Sector of Industry
No.
1 Cement
2 Pulp & Paper
Population
Sample size
35
7
26
5
3
Food
139
51
4
Metal
64
21
5
Soap & Chemicals
38
19
6
Hotel
188
39
7
Brick
435
27
8
Cold Storage
23
12
929
200
Total

4. Summary of all sectors

5. Saving potential of 8 energy-intensive sectors
Nepal
No Sector
Cement
1
2
3
4
5
6
7
8
National
Production
Q
2,642,521 t
1,933,518 t
709,003 t
39,372t
Clinker-based
Limestone-based
Pulp & Paper
Food total
Beverage 2,000,000 kl
Biscuit
18,000 t
Dairy 1,556,000 kl
Noodle
42,840 t
Sugar
190,650 t
Vegetable Oil & Ghee
194,319 t
Metal
600,000 t
Soap & Chemical
112,000 t
Hotel
15,021 rooms
Brick
FC-BTK 3,984,000,000
bricks
VSBK
16,000,000
bricks
Cold Storage
60,900 t
Total
Money
NPR
1,488,829,349
383,938,427
1,104,890,923
33,663,972
783,680,733
430,210,534
18,988,796
257,647,474
15,298,110
21,020,412
40,515,407
281,870,090
42,087,972
360,432,716
3,374,780,735
3,374,019,929
Emission
Savings
CO2
kg
85,853
5,486
80,367
9,940
12,835
1,161
791
1,068
2,353
491
6,971
9,490
10,226
1,951
6,535
6,524
760,806
12
13,191,798
6,378,537,366
108
136,938
Energy Saving Potential
Electrical
MWh
Thermal
GJ
45,854
35,390
919
1,598,359
136,848
23,075
1,551
7,584
478
1,900
1,911
5,522
1,210
29,445
177,635
12,835
192,145
52,577
5,080
124,337
202,695
149,334
97,056
0
5,329,804
0
1,214/
1,838
156,676
8,079,920

6. Cement Sector

7. Observations
 Two types of cement plants
 Limestone based
 Clinker based
 Limestone based plants use electrical as well as thermal
energy (coal) as fuel for Sintering process
 Clinker based plants use electrical energy
 Motors used are old, rewound and of standard efficiency
 NEA supply is from 66/33/11 kV with TOD metering
 Capacitor banks are installed to improve P.F.
 Face problem of voltage fluctuation and low voltage supply
 Production hampered by load shedding

8. Pulp & Paper Sector

9. Observations
 Electrical as well as thermal energy from rice
husk in boiler
 Capacitor banks used to improve power factor
more than 0.9
 Combustion efficiency is not checked for boilers
 Steam leakages observed
 Insulation not satisfactory
 Frequent non-scheduled power cuts result in
production loss
 High cost of Generated electrical energy

10. Food Sector

11. Food Sector
Sub-sectors
 Beverage
 Biscuit
 Dairy
 Noodle
 Sugar
 Vegetable oil & Ghee

12. Observations
 Food industries consume both electrical and
thermal energy.
 Diesel boiler used most for backup.
 Use of inefficient motors.
 Steam leakages are observed.
 Improper Insulation
 Power factor not manage well.

13. Potential saving as per ESPS
standard
Total
Electrical
(MWh)
Electrical
saving
(MWh)
Total
Thermal
(GJ)
Thermal
saving
(GJ)
Beverage
1,530
139
55,623
10,707
Biscuit
3,571
1,052
56,584
8,702
Dairy
7,996
505
91,913
12,785
Noodles
3,956
243
235,382
26,786
Sugar
5,386
783
10,106
2,095
Veg. oil &
ghee
21,863
1,200
705,371
78,084

14. Metal Sector

15. Observations
 Iron and Steel industries are installed with heavy
motors and electrical energy is mainly used for
the drives of rolling mill, billet sharing, pumps,
compressor, blowers and wire plant motors
 Motors are old and re-winded
 Capacitor banks are used to improve power
factor
 Furnace is used mainly with coal, FO and diesel
and workplace is warm/hot indicating insufficient
insulation
 Frequent power cuts affect production

16. Soap & Chemical Sector

17. Observations
 Laundry soap is the main product
 Small scale pan boiling units use firewood
medium and large units use rice husk fired
boiler
 Only few industries uses capacitor bank
 Combustion efficiency is not checked
 Leakages are seen
 Insulation not adequate – pipes, flanges and
valves are not insulated

18. Brick Sector

19. Observations
 Majority of brick industries are BTK (fixed
chimney)
 Energy use in brick kiln is coal and coal is
imported from India
 Electricity is used for lighting and drives
 No significant disturbance in production by load
shedding
 Insulation inefficient
 Inefficient coal feeding practice

20. Cold Storage Sector

21. Observations
 Potatoes and fruits are the main products stored
 They consume only electrical energy for cooling
process
 The rate of electricity charge is subsidized 50%
by NEA
 All units have DG for backup.
 Motor loadings are not checked
 Power factor is low – none used capacitor banks
 Many incandescent lamps are used
 Air curtains are not used

22. Energy Intensity regional VS
Baseline
Sector
Electrical Intensity
Regional (kWh/MT)
Baseline (kWh/MT)
Cement
Limestone Base
105
148.5
Cement Clinker
Base
35
48.68
Pulp & Paper
1175
937.49
Metal
200
149.17
Soap & Chemical
-
111.25
Brick (BTK Fixed
-
21.27 kWh/1000 pcs
Cold Storage
-
283.53

23. Energy Intensity regional VS
Baseline
Sector
Thermal Intensity
Regional (MJ/MT)
Baseline (MJ/MT)
Cement
Limestone Base
3,138
5,411.26
Cement Clinker
Base
-
-
Pulp & Paper
16,412
15,434
Metal
1,500
1,470
Soap & Chemical
-
3,378
Brick (BTK Fixed
2,215 MJ/1000 pcs
3,951 MJ/1000 pcs
Cold Storage
-
-

24. Areas of Potential Savings
 Efficient motors
 Power factor improvement
 Improvement in insulation of the cold pipelines,
storage room walls and ceiling
 More efficient belt and pulleys
 Partition of cooling areas, installation and
effective use of air curtains
 Regular cleaning and maintenance of condenser
pipes
 Replacement of incandescent lamps
 Minimization of leakages of compressed
ammonia gas

25. Recommendations
 Energy audits must be carried out
periodically in all the industries so that
opportunities are known and understood
 Awareness & training about EE
 Financing for the implementation of energy
saving options – mobilize financial institutes
and banks
 Keeping the record of data and monitoring

26. Recommendations
 Institutionalizing energy audit expertise
 Focus on best practices and best available
technology on energy
 Policy with mandatory periodic energy
audits and reporting
 Involve educational institutions for offer
course on EE
 Competition and award for improvement in
EE by sector

27. Thank you