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Energy Management & Turnkey Consulting

By Yogesh D. Sonawane, Lead-Energy Management, Reliance Retail

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Yogesh D. Sonawane, Lead-Energy Management, Reliance Retail

India is one of the world’s largest economies with current gross domestic product (GDP) over $1 trillion (Rs. 45.3 lakh crore) and expectations of growth between 7 and 8 percent a year for the next two decades. GDP is anticipated to be $4.5 trillion (Rs. 204.2 lakh crore) by 2020. India’s strong economic growth is likely to create corresponding increases in greenhouse gas emissions, energy use and demand, water scarcity and other constraints on natural resources. In addition, India is expected to be at the front line of climate change impacts as floods and droughts become more frequent and dangerous.

Access to energy is a fundamental building block of economic development, and the Government of India has paid particular attention to its energy and resource development. The International Energy Agency (IEA) predicts India’s primary energy demands will be more than double by 2030.

One indicator of the electricity system’s need for expansion is seen in current power shortfalls: peak load shortfalls in power generation are currently 12 to 15 percent. Power quality and supply are both major constraints to growth.

The decarburization of India’s economy is challenged by the needs for new and additional power generation and smarter, more efficient use of energy. Achievement of these goals is further complicated by the structure of India’s economy, which is largely cash-based and is challenged by high interest rates that may make it more difficult to finance energy projects and demand-side measures. While much of the energy and development agenda in India has focused on creating additional energy supply, turnkey energy projects contracting an important dialogue is also emerging on energy efficiency, led by the Indian Ministry of Power’s Bureau of Energy Efficiency.

Importance of energy or turnkey consulting:

In many companies the position "Energy Manager" does not exist and where it does the duties and qualifications vary greatly. Energy or turnkey consulting would benefit by retaining an energy consultant and what characteristics to look for.

  • Engaging an Energy consultant allows you to retain a professional without putting him/her on your payroll
  • There is no need for training
  • He/she is monitoring the markets on a full-time basis
  • The job is not being done internally, or is a part-time responsibility for someone
  • Unlike employees, it is easy to link an Energy Consultant's compensation to your success.

With the position of energy manager absent in most organizations, many people do not understand the value of retaining an experienced energy consultant.  In addition to avoiding "soft-costs" and needless man-hours, an energy consultant can achieve more savings on energy bill contracts than a company's internal efforts. The Public Service Commission’s/Public Utilities Commissions in some states provide a certification process for marketers, brokers, and aggregators of natural gas and electric. If your energy consultant is certified or licensed by state regulators, you can rest assured that he or she has the managerial, technical and financial wherewithal to provide energy consulting and energy procurement services. Your energy consultant would also benefit from a relationship with industry groups such as the Association of Energy Engineers and access to federal programs such as Energy Star.

A good energy consultant knows where the energy markets have been trading and where they are likely to go. A good understanding of market fundamentals and technical analysis will help with the latter. Armed with this information, your energy data, and a good understanding of contracts, your energy consultant will develop and administer the Request for Proposal (RFP) process. The RFP should seek various price options and terms those are appropriate for the prevailing market conditions and are consistent with your company's risk tolerance.

A good energy consultant will know how to find, understand, and explain your utility company's tariffs. Often a commercial or industrial customer is eligible to receive service under several rate schedules. An energy consultant should be able to prove to you which rate schedule provides the least cost to you. Because the tariffs are complex, it is not uncommon for billing mistakes to occur. A competent energy consultant will be able to identify errors through a systematic audit process. Identification of cost-saving projects is also a part of an efficient energy consultant.  Identification of such will help him to perform a life-cycle analysis that considers up-front capital costs, maintenance costs, tax implications, energy savings, and future salvage value. As part of the financial analysis, your energy consultant should point out opportunities to obtain low-cost loans, grants and financing alternatives.

The energy and turnkey contracting successfully helped millions by following support to business by direct and indirect support.

Energy Analysis and Consulting: Certified energy professionals will visit your facilities and identify opportunities for improvement.

Energy Engineering: Once identify energy opportunities, the detail designs and engineering calculations to validate each energy management and conservation measure. 

Project Management and Commissioning: Energy Services Company is your turnkey solution to implementing all energy conservation measures from conception through commissioning.

Measurement and Verification: Upon project completion, need to verify project savings by measuring actual energy consumption against established baseline consumption.

Rebates: Energy management team tracks and handles the entire application process for all rebates and tax incentives, working with utility providers across the country.

Flexible Financing and Contracting: The Energy Services Company provides flexible options to meet your payback and cash flow objectives.

Ongoing Operations: After completion, our maintenance resources ensure maximum benefit by maintaining your building systems at optimal performance.

Utility Bill Payment and Reporting Solutions: We manage a network of bill payment and reporting solutions at competitive rates to further streamline utility bill payment and audit functions.

Benchmarking and Sustainability:  will be quantify points earned for LEED certification and register the facilities in the EPA’s ENERGY STAR® benchmarking tool to measure the project’s achievements toward sustainability.

Conclusion:

Rapidly increasing energy demand and growing concern about economic and environmental consequences call for effective and thorough energy governance in India. To understand the dynamics of the energy policy framework governing India’s energy sector, it is essential to comprehend the policy objectives and context in which they are placed.

Through energy and turnkey consulting we can not only immediately support our business but also environment and country through energy conservation and associated reduction in energy cost. By this way both can mutually lead to prosperity with immediate effect.

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