Introduction

Energy is one of the major inputs for the economic development of any country. In the case of
the developing countries, the energy sector assumes a critical importance in view of the ever-
increasing energy needs requiring huge investments to meet them.
Energy can be classified into several types based on the following criteria:

• Primary and Secondary energy

• Commercial and Non commercial energy
• Renewable and Non-Renewable energy

Primary and Secondary Energy

Primary energy sources are
those that are either found or
stored in nature. Common pri-
mary energy sources are coal,
oil, natural gas, and biomass
(such as wood). Other primary
energy sources available
include nuclear energy from
radioactive substances, thermal
energy stored in earth's interi-
or, and potential energy due to
earth's gravity. The major pri-
mary and secondary energy
sources are shown in Figure
1.1 Primary energy sources are
mostly converted in industrial
utilities into secondary energy
sources; for example coal, oil
Figure 1.1 Major Primary and Secondary Sources
or gas converted into steam

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 and electricity. Primary energy can also be used directly. Some energy sources have non-ener-
gy uses, for example coal or natural gas can be used as a feedstock in fertiliser plants.

Commercial Energy and Non Commercial Energy

Commercial Energy
The energy sources that are available in the market for a definite price are known as commer-
cial energy. By far the most important forms of commercial energy are electricity, coal and
refined petroleum products. Commercial energy forms the basis of industrial, agricultural,
transport and commercial development in the modern world. In the industrialized countries,
commercialized fuels are predominant source not only for economic production, but also for
many household tasks of general population.
Examples: Electricity, lignite, coal, oil, natural gas etc.
Non-Commercial Energy
The energy sources that are not available in the commercial market for a price are classified as
non-commercial energy. Non-commercial energy sources include fuels such as firewood,
cattle dung and agricultural wastes, which are traditionally gathered, and not bought at a price
used especially in rural households. These are also called traditional fuels. Non-commercial
energy is often ignored in energy accounting.
Example: Firewood, agro waste in rural areas; solar energy for water heating, electricity
generation, for drying grain, fish and fruits; animal power for transport, threshing, lifting water
for irrigation, crushing sugarcane; wind energy for lifting water and electricity generation.

Renewable and Non-Renewable Energy

Renewable energy is energy obtained from sources that are essentially inexhaustible.
Examples of renewable resources include wind power, solar power, geothermal energy, tidal
power and hydroelectric power (See Figure 1.2). The most important feature of renewable
energy is that it can be harnessed without the release of harmful pollutants.
Non-renewable energy is the conventional fossil fuels such as coal, oil and gas, which are
likely to deplete with time.

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 Figure 1.2 Renewable and Non-Renewable Energy

Sector-wise Renewable Energy Consumption in India

A simple diagram:
Renewable Energy Consumption in India (Sector-wise)
-------------------------------------------------------------------------------------------
| Sector | Share/Usage Pattern
--------------------------------------------------------------------------------------
| Industry | Solar rooftop, biomass, RE power
| Residential | Solar rooftop, solar heaters
| Agriculture | Solar pumps, biogas
| Commercial | Solar rooftops, RE power
| Transport | Biofuels, EVs (RE-based charging)|
---------------------------------------------------------------------------------------
Sector-wise description
1. Industrial Sector
 Uses RE in form of:
o Solar rooftop
o Biomass boilers
o Wind-solar hybrid for captive use
 RE helps reduce electricity bills & emissions

2. Residential Sector
 Solar rooftop panels
 Solar water heaters
 Small biogas units

3. Agricultural Sector
 Solar irrigation pumps (PM-KUSUM scheme)
 Biomass-based rural energy
 Solar dryers

4. Commercial Sector
 Solar rooftops on malls, offices, hotels
 Green buildings using solar & wind-assisted power

5. Transport Sector
 Biofuels blending (ethanol, biodiesel)
 EVs charged using renewable electricity (solar EV charging stations)

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 Sector Wise Energy Consumption in India
The major commercial energy consuming sectors in the
country are classified as shown in the Figure 1.5. As seen
from the figure, industry remains the biggest consumer of
commercial energy and its share in the overall consumption
is 49%. (Reference year: 1999/2000)

Figure 1.5 Sector Wise Energy Consumption

(1999-2000

Energy Needs of Growing Economy

Economic growth is desirable for developing countries, and energy is essential for economic
growth. However, the relationship between economic growth and increased energy demand is
not always a straightforward linear one. For example, under present conditions, 6% increase in
India's Gross Domestic Product (GDP) would impose an increased demand of 9 % on its
energy sector.
In this context, the ratio of energy demand to GDP is a useful indicator. A high ratio
reflects energy dependence and a strong influence of energy on GDP growth. The developed
countries, by focusing on energy efficiency and lower energy-intensive routes, maintain their
energy to GDP ratios at values of less than 1. The ratios for developing coun tries
are much higher.
India's Energy Needs
The plan outlay vis-à-vis share of energy is given in Figure 1.6. As seen from the Figure,
18.0% of the total five-year plan outlay is spent on the energy sector.

Energy Pricing in India

Price of energy does not reflect true cost to society. The basic assumption underlying efficien-
cy of market place does not hold in our economy, since energy prices are undervalued and
ener- gy wastages are not taken seriously. Pricing practices in India like many other
developing coun- tries are influenced by political, social and economic compulsions at the
state and central level. More often than not, this has been the foundation for energy sector
policies in India. The Indian energy sector offers many examples of cross subsidies e.g.,
diesel, LPG and kerosene being subsidised by petrol, petroleum products for industrial usage
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 and industrial, and commercial consumers of electricity subsidising the agricultural and
domestic consumers.
Coal
Grade wise basic price of coal at the pithead excluding statutory levies for run-of-mine (ROM)
coal are fixed by Coal India Ltd from time to time. The pithead price of coal in India compares
favourably with price of imported coal. In spite of this, industries still import coal due its high-
er calorific value and low ash content.
Oil
As part of the energy sector reforms, the government has attempted to bring prices for many of
the petroleum products (naphtha, furnace oil, LSHS, LDO and bitumen) in line with interna-
tional prices. The most important achievement has been the linking of diesel prices to interna-
tional prices and a reduction in subsidy. However, LPG and kerosene, consumed mainly by
domestic sectors, continue to be heavily subsidised. Subsidies and cross-subsidies have result-
ed in serious distortions in prices, as they do not reflect economic costs in many cases.
Natural Gas
The government has been the sole authority for fixing the price of natural gas in the country. It
has also been taking decisions on the allocation of gas to various competing consumers. The
gas prices varies from Rs 5 to Rs.15 per cubic metre.
Electricity
Electricity tariffs in India are structured in a relatively simple manner. While high tension con-
sumers are charged based on both demand (kVA) and energy (kWh), the low-tension (LT)
con- sumer pays only for the energy consumed (kWh) as per tariff system in most of the
electricity boards. The price per kWh varies significantly across States as well as customer
segments with- in a State. Tariffs in India have been modified to consider the time of usage
and voltage level of supply. In addition to the base tariffs, some State Electricity Boards have
additional recov- ery from customers in form of fuel surcharges, electricity duties and taxes.
For example, for an industrial consumer the demand charges may vary from Rs. 150 to Rs.
300 per kVA, whereas the energy charges may vary anywhere between Rs. 2 to Rs. 5 per
kWh. As for the tariff adjust- ment mechanism, even when some States have regulatory
commissions for tariff review, the decisions to effect changes are still political and there is no
automatic adjustment mechanism, which can ensure recovery of costs for the electricity
boards.

Energy Security
The basic aim of energy security for a nation is to reduce its dependency on the imported ener-
gy sources for its economic growth.
India will continue to experience an energy supply shortfall throughout the forecast period.
This gap has widened since 1985, when the country became a net importer of coal. India has
been unable to raise its oil production substantially in the 1990s. Rising oil demand of close to
10 percent per year has led to sizable oil import bills. In addition, the government subsidises
refined oil product prices, thus compounding the overall monetary loss to the government.
Imports of oil and coal have been increasing at rates of 7% and 16% per annum respective-
5
 ly during the period 1991-99. The dependence on energy imports is projected to increase in the
future. Estimates indicate that oil imports will meet 75% of total oil consumption requirements
and coal imports will meet 22% of total coal consumption requirements in 2006. The imports
of gas and LNG (liquefied natural gas) are likely to increase in the coming years. This energy
import dependence implies vulnerability to external price shocks and supply fluctuations,
which threaten the energy security of the country.
Increasing dependence on oil imports means reliance on imports from the Middle East, a
region susceptible to disturbances and consequent disruptions of oil supplies. This calls for
diversification of sources of oil imports. The need to deal with oil price fluctuations also
neces- sitates measures to be taken to reduce the oil dependence of the economy, possibly
through fis- cal measures to reduce demand, and by developing alternatives to oil, such as
natural gas and renewable energy.
Some of the strategies that can be used to meet future challenges to their energy security are
• Building stockpiles
• Diversification of energy supply sources
• Increased capacity of fuel switching
• Demand restraint,
• Development of renewable energy sources.
• Energy efficiency
• Sustainable development
Although all these options are feasible, their implementation will take time. Also, for coun-
tries like India, reliance on stockpiles would tend to be slow because of resource constraints.
Besides, the market is not sophisticated enough or the monitoring agencies experienced
enough to predict the supply situation in time to take necessary action. Insufficient storage
capacity is another cause for worry and needs to be augmented, if India has to increase its
energy stock-
pile.
However, out of all these options, the simplest and the most easily attainable is reducing
demand through persistent energy conservation efforts.

Units and Conversions

The energy units are wide and varied. The usage of units varies with country, industry sector,
systems such as FPS, CGS, MKS and SI, and also with generations of earlier period using FPS
and recent generations using MKS. Even technology/equipment suppliers adopt units that are
different from the one being used by the user of that technology/equipment. For example some
compressor manufacturers specify output in m3/min while some specify in cubic feet/minute or
even in litres/second. All this cause confusion and hence the need for this chapter on units and
conversions.

Energy Units
1 barrel of oil = 42 U.S. gallons (gal) = 0.16 cubic meters (m3)
1 MW 1,000 kW
1 kW 1,000 Watts
1 kWh 3,412 Btu
1 kWh 1.340 Hp hours
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 1,000 Btu 0.293 kWh
1 Therm 100,000 Btu (British Thermal Units)
1 Million Btu 293.1 Kilowatt hours
100,000 Btu 1 Therm
1 Watt 3.412 Btu per hour
1 Horsepower 746 Watts or 0.746 Kilo Watts
1 Horsepower hr. 2,545 Btu
1 kJ 0.239005 Kilocalories
1 Calorie 4.187 Joules
1 kcal/Kg 1.8 Btu's/lb.
1 Million Btu 252 Mega calories
1 Btu 252 Calories
1 Btu 1,055 Joules
1 Btu/lb. 2.3260 kJ/kg
1 Btu/lb. 0.5559 Kilocalories/kg

Power (Energy Rate) Equivalents

1 kilowatt (kW) 1 kilo joule /second (kJ/s)
1 kilowatt (kW) 3413 BTU/hour (Btu/hr.)
1 horsepower (hp) 746 watts (0.746 kW)
1 Ton of refrigeration 12000 Btu/hr.

Pressure:
Gauge pressure is defined relative to the prevailing atmospheric pressure (101.325 kPa at sea
level), or as absolute pressure:
Absolute Pressure = Gauge Pressure + Prevailing Atmospheric Pressure

7
 Units of measure of pressure:
Metric (SI) : kilopascals
(kPa) 1 pascal (Pa) = 1 Newton/m2
(N/m2 )
1 physical atmosphere (atm) = 101325 Pa = 760 mm of mercury (mm Hg)
= 14.69 lb-force/in2 (psi)
1 technical atmosphere (ata) = 1 kilogram-force/cm2 (kg/cm2)= 9.806650 × 104 Pa
Power:
1 W = 1 J/s = 0.9478×10-3 Btu/s = 3.41214 Btu/hr
Fuel to kWh (Approximate conversion)
Natural gas M3 x 10.6 kWh
3
Ft x 0.3 kWh
therms x 29.3 kWh
LPG (propane) m3 x 25 kWh
Coal kg x 8.05 kWh
Coke kg x 10.0 kWh
Gas oil litres x 12.5 kWh
Light fuel oil litres x 12.9 kWh
Medium fuel oil litres x 13.1 kWh
Heavy fuel oil litres x 13.3 kWh

Prefixes for units in the International System

Prefix Symbol Power Example USA/Other
exa E 1018 quintillion
peta P 1015 pentagram (Pg) quadrillion/billiard
tera T 1012 terawatt (TW) trillion/billion
giga G 109 gigawatt (GW) billion/milliard
mega M 106 megawatt (MW) million
kilo k 103 kilogram (kg)
hecto h 102 hectoliter (hl)
deka da 101 dekagram (dag)
deci d 10-1 decimeter (dm)
centi c 10-2 centimeter (cm)
milli m 10-3 millimeter (mm)
micro  10-6 micrometer (m)
nano n 10-9 nanosecond (ns)
pico p 10-12 picofarad (pf)
femto f 10-15 femtogram (fg)

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atto a 10-18

9
 Energy

To: TJ Gcal Mtoe MBtu GWh

From: Multiply by:
TJ 1 238.8 2.388 x 10-5 947.8 0.2778
-3
Gcal 4.1868 x 10 1 10-7 3.968 1.163 x 10-3
Mtoe 4.1868 x 104 107 1 3.968 x 107 11630
MBtu 1.0551 x 10-3 0.252 2.52 x 10-8 1 2.931 x 10-4
GWh 3.6 860 8.6 x 10-5 3412 1

Mass

To: kg t lt st lb
From: multiply by:
kilogram (kg) 1 0.001 9.84 x 10-4 1.102 x 10-3 2.2046
tonne (t) 1000 1 0.984 1.1023 2204.6
long ton (lt) 1016 1.016 1 1.120 2240.0
short ton (st) 907.2 0.9072 0.893 1 2000.0
-4 -4 -4
pound (lb) 0.454 4.54 x 10 4.46 x 10 5.0 x 10 1

Volume

To: gal U.S. gal U.K. bbl ft3 l m3

From: multiply by:
U.S. gallon (gal) 1 0.8327 0.02381 0.1337 3.785 0.0038
U.K. gallon (gal) 1.201 1 0.02859 0.1605 4.546 0.0045
Barrel (bbl) 42.0 34.97 1 5.615 159.0 0.159
3
Cubic foot (ft ) 7.48 6.229 0.1781 1 28.3 0.0283
Litre (l) 0.2642 0.220 0.0063 0.0353 1 0.001
3
Cubic metre (m ) 264.2 220.0 6.289 35.3147 1000.0 1

National Action Plan on Climate Change (NAPCC)

The National Action Plan on Climate Change (NAPCC) was launched by the Government of India in
June 2008.
It provides a comprehensive strategy to tackle the challenges of climate change, while ensuring the
country's sustainable development.
Objectives of NAPCC
1. Reduce greenhouse gas (GHG) emissions
2. Promote energy efficiency and renewable energy
3. Encourage sustainable agriculture & habitat
4. Protect water resources and forests
5. Support climate research and awareness
6. Balance economic growth with environmental protection
Guiding Principles of NAPCC
 Protect the poor and vulnerable sections of society
 Use clean technologies
 Promote renewable energy (solar, wind, etc.)
 Improve energy efficiency in all sectors
 Deploy cost-effective strategies
 Follow the principle of “Common but Differentiated Responsibilities (CBDR)”
Eight National Missions under NAPCC
NAPCC consists of 8 missions, each focusing on a specific area of climate action.
1. National Solar Mission (NSM)
 Aim: Increase use of solar energy
 Targets solar power generation, rooftop solar, solar parks
 Reduces dependence on fossil fuels
2. National Mission for Enhanced Energy Efficiency (NMEEE)
 Promotes energy-saving technologies
 Includes PAT Scheme (Perform, Achieve and Trade)
 Reduces energy consumption in industries
3. National Mission on Sustainable Habitat
 Promotes energy-efficient buildings
 Better waste management
 Public transport systems (metro, buses)
4. National Water Mission
 Improve water use efficiency
 Target: 20% increase in water efficiency
 Promote water conservation and recycling
5. National Mission for Sustaining the Himalayan Ecosystem
 Protect Himalayan glaciers and biodiversity
 Promote sustainable tourism and land use
6. National Mission for a Green India
 Increase forest cover by 5 million hectares
 Improve ecosystem services
 Enhances carbon sequestration (absorbing CO₂)
7. National Mission for Sustainable Agriculture
 Climate-resilient farming practices
 Drought-resistant crops
 Improved irrigation and soil health
8. National Mission on Strategic Knowledge for Climate Change
 Climate research and education
 Data collection and technology development
 Enhances India’s scientific understanding of climate change
Benefits of NAPCC
 Reduces pollution and carbon emissions
 Promotes clean and renewable energy
 Improves energy security
 Protects natural resources
 Supports sustainable development
 Helps India meet global climate commitments (Paris Agreement)

Integrated Energy Policy

Integrated Energy Policy refers to a unified policy framework that coordinates all energy
resources, technologies, and sectors to provide:
✔ Reliable energy
✔ Affordable energy
✔ Environmentally sustainable energy
Objectives of Integrated Energy Policy
1. Ensure energy security for the country
2. Provide affordable energy to all citizens
3. Promote renewable and clean energy
 4. Increase domestic energy production
5. Reduce dependence on imports (especially oil)
6. Use energy efficiently and reduce wastage
7. Encourage innovation and technology development
Key Components of the Policy
1. Diversification of Energy Sources
Use a mix of:
 Coal
 Oil & gas
 Nuclear
 Hydro
 Solar
 Wind
 Biomass
No single source should dominate.
2. Promote Renewable Energy
 Increase solar, wind, hydro, and bioenergy
 Reduce carbon emissions
3. Energy Efficiency
 Efficient appliances
 Industrial energy-saving measures
 Use of LED lights, smart meters, efficient motors
4. Strengthen Infrastructure
 Modern transmission and distribution network
 Smart grids
 Storage systems (batteries, pumped hydro)
5. Reduce Import Dependency
 Explore domestic coal, oil, gas
 Promote biofuels & electric mobility
6. Universal Energy Access
 Provide electricity to all villages and households
 Affordable LPG, electricity, and clean fuels
Need for Integrated Energy Policy
India urgently needs an Integrated Energy Policy due to various reasons:
1. Rapidly Growing Energy Demand
 Population growth
 Urbanization
 Expanding industries
 More vehicles, appliances
Without planning, demand will exceed supply.
2. High Import Dependence
 India imports:
o ~85% of crude oil
o ~55% of natural gas
o ~20% of coal
This creates economic and security risks.
3. Environmental Concerns
 Rising pollution
 Global warming
 Need to meet climate commitments (Paris Agreement)
Clean and renewable energy must be promoted.
4. Need for Reliable Energy Supply
Frequent power cuts or fuel shortages affect:
 Industries
 Agriculture
 Transportation
 Households
IEP ensures continuous, reliable supply.
5. Energy Pricing & Affordability
IEP aims to:
 Reduce price volatility
 Ensure fair pricing of electricity, fuel, LPG
6. Efficient Use of Resources
India must use energy without wastage:
  Old technologies waste energy
 Modern systems save energy and cost
7. Long-Term National Growth
A strong energy base is essential for:
 Economic development
 Employment
 Technological progress

ENERGY AUDITING
As per the Energy Conservation Act, 2001, Energy Audit is defined as “the verification, monitoring and
analysis of use of energy including submission of technical report containing recommendations for
improving energy efficiency with cost benefit analysis and an action plan to reduce energy
consumption”.

Need for Energy Audit:

In any institution, the three top operating expenses are often found to be energy consumption , labour
and materials. If one were to relate to the manageability of the cost or potential cost savings in each of
the above components, energy would invariably emerge as a top ranker, and thus energy management
function constitutes a strategic area for cost reduction. Energy Audit will help to understand more about
the ways energy and fuel are used in any institution , and help in identifying the areas where waste can
occur and where scope for improvement exists.
The Energy Audit would give a positive orientation to the energy cost reduction, preventive
maintenance and quality control programmes which are vital for production and utility activities. Such
an audit programe will help to keep focus on variations which occur in the energy costs, availability and
reliability of supply of energy, decide on appropriate energy mix, identify energy conservation
technologies, retrofit for energy conservation equipment etc.
In general, Energy Audit is the translation of conservation ideas into realities, by lending technically
feasible solutions with economic and other organizational considerations within a specified time frame.
The primary objective of Energy Audit is to determine ways to reduce energy consumption per unit of
product output or to lower operating costs. Energy Audit provides a “bench-mark" (Reference point) for
managing energy in the organization and also provides the basis for planning a more effective use of
energy throughout the organization.

Type of Energy Audit:

Thus Energy Audit can be classified into the following two types.
i) Preliminary Audit plan
ii) ii) Internal Audit
iii) iii) External audit
iv) iv) Post audit

Preliminary Energy Audit Methodology

Preliminary energy audit is a relatively quick exercise to:
 • Establish energy consumption practice in the organization
• Identify the most likely (and the easiest areas for attention
• Identify immediate (especially no-/low-cost) improvements/ savings
• Set a 'reference point'
• Identify areas for more detailed study/measurement
• Preliminary energy audit uses existing, or easily obtained data

Detailed Energy Audit Methodology

A comprehensive audit provides a detailed energy project implementation plan for a facility, since it
evaluates all major energy using systems. This type of audit offers the most accurate estimate of energy
savings and cost. It considers the interactive effects of all projects, accounts for the energy use of all
major equipment, and includes detailed energy cost saving calculations and project cost.
In a comprehensive audit, one of the key elements is the energy balance. This is based on an inventory
of energy using systems, assumptions of current operating conditions and calculations of energy use.
This estimated use is then compared to utility bill charges. Detailed energy auditing is carried out in
three phases: Phase I, II and III
Phase I - Pre Audit Phase
Phase II - Audit Phase
Phase III - Post Audit Phase

Electrical Load Management and Maximum Demand Control

Need for Electrical Load Management
In a macro perspective, the growth in the electricity use and diversity of end use segments in
time of use has led to shortfalls in capacity to meet demand. As capacity addition is costly and
only a long time prospect, better load management at user end helps to minimize peak
demands on the utility infrastructure as well as better utilization of power plant capacities.
The utilities (State Electricity Boards) use power tariff structure to influence end user in
bet- ter load management through measures like time of use tariffs, penalties on exceeding
allowed maximum demand, night tariff concessions etc. Load management is a powerful
means of effi- ciency improvement both for end user as well as utility.
As the demand charges constitute a considerable portion of the electricity bill, from user
angle too there is a need for integrated load management to effectively control the maximum
demand.
Step By Step Approach for Maximum Demand Control

1. Load Curve Generation

Presenting the load demand of a consumer
against time of the day is known as a ‘load
curve’. If it is plotted for the 24 hours of a
single day, it is known as an ‘hourly load
curve’ and if daily demands plotted over a
month, it is called daily load curves. A typi-
cal hourly load curve for an engineering
industry is shown in Figure 1.5. These types
of curves are useful in predicting patterns of
drawl, peaks and valleys and energy use
trend in a section or in an industry or in a Figure 1.5 Maximum Demand
distribution network as the case may be. (Daily Load Curve, Hourly
kVA)
2. Rescheduling of Loads
Rescheduling of large electric loads and equipment operations, in different shifts can be
planned and implemented to minimize the simultaneous maximum demand. For this purpose,
it is advis- able to prepare an operation flow chart and a process chart. Analyzing these charts
and with an integrated approach, it would be possible to reschedule the operations and running
equipment in such a way as to improve the load factor which in turn reduces the maximum
demand.
3. Storage of Products/in process material/ process utilities like refrigeration
It is possible to reduce the maximum demand by building up storage capacity of products/
materi- als, water, chilled water / hot water, using electricity during off peak periods. Off peak
hour oper- ations also help to save energy due to favorable conditions such as lower ambient
temperature etc.
Example: Ice bank system is used in milk & dairy industry. Ice is made in lean period and
used in peak load period and thus maximum demand is reduced.
4. Shedding of Non-Essential Loads
When the maximum demand tends to reach preset limit, shedding some of non-essential loads
temporarily can help to reduce it. It is possible to install direct demand monitoring systems,
which will switch off non-essential loads when a preset demand is reached. Simple systems
give an alarm, and the loads are shed manually. Sophisticated microprocessor controlled
systems are also available, which provide a wide variety of control options like:
■ Accurate prediction of demand
■ Graphical display of present load, available load, demand limit
■ Visual and audible alarm
■ Automatic load shedding in a predetermined sequence
■ Automatic restoration of load
■ Recording and metering
5. Operation of Captive Generation and Diesel Generation Sets
When diesel generation sets are used to supplement the power supplied by the electric utilities,
it is advisable to connect the D.G. sets for durations when demand reaches the peak value.
This would reduce the load demand to a considerable extent and minimize the demand
charges.
6. Reactive Power Compensation
The maximum demand can also be reduced at the plant level by using capacitor banks and
maintaining the optimum power factor. Capacitor banks are available with microprocessor
based control systems. These systems switch on and off the capacitor banks to maintain the
desired Power factor of system and optimize maximum demand thereby.
 Power Factor Improvement and Benefits
Power factor Basics
In all industrial electrical distribution systems, the major loads are resistive and inductive.
Resistive loads are incandescent lighting and resistance heating. In case of pure resistive loads,
the voltage (V), current (I), resistance (R) relations are linearly related, i.e.
V = I x R and Power (kW) = V x I
Typical inductive loads are A.C. Motors, induction furnaces, transformers and ballast-type
lighting. Inductive loads require two kinds of power: a) active (or working) power to perform
the work and b) reactive power to create and maintain electro-magnetic fields.
Active power is measured in kW (Kilo Watts). Reactive power is measured in kVAr (Kilo
Volt-Amperes Reactive).
The vector sum of the active power and reactive power make up the total (or apparent)
power used. This is the power generated by the SEBs for the user to perform a given amount of
work. Total Power is measured in kVA (Kilo Volts-Amperes) (See Figure 1.6).

Figure 1.6 kW, kVAr and kVA Vector

The active power (shaft power required or true power required) in kW and the reactive
power required (kVAr) are 90° apart vectorically in a pure inductive circuit i.e., reactive power
kVAr lagging the active kW. The vector sum of the two is called the apparent power or kVA,
as illustrated above and the kVA reflects the actual electrical load on distribution system.
The ratio of kW to kVA is called the power factor, which is always less than or equal to
unity. Theoretically, when electric utilities supply power, if all loads have unity power factor,
maximum power can be transferred for the same distribution system capacity. However, as the
loads are inductive in nature, with the power factor ranging from 0.2 to 0.9, the electrical dis-
tribution network is stressed for capacity at low power factors.
Improving Power Factor
The solution to improve the power factor is to add power factor
cor- rection capacitors (see Figure 1.7) to the plant power
distribution sys- tem. They act as reactive power generators, and
provide the needed reactive power to accomplish kW of work.
This reduces the amount of reactive power, and thus total power,
generated by the utilities.
Example:
A chemical industry had installed a 1500 kVA transformer. The
ini- tial demand of the plant was 1160 kVA with power factor of
0.70.
~ Figure 1.7 Capacitors
The % loading of transformer was about 78% (11 60/1500 =
%). To improve the power factor and to avoid the penalty, the
unit had added about 410 kVAr in motor load end. This improved the power factor to 0.89, and
reduced the required kVA to 913, which is the vector sum of kW and kVAr (see Figure 1.8).
 Figure 1.8 Power factor before and after Improvement

After improvement the plant had avoided penalty and the 1500 kVA transformer now
loaded only to 60% of capacity. This will allow the addition of more load in the future to be
supplied by the transformer.
The advantages of PF improvement by capacitor addition
a) Reactive component of the network is reduced and so also the total current in the system
from the source end.
b) I2R power losses are reduced in the system because of reduction in current.
c) Voltage level at the load end is increased.
d) kVA loading on the source generators as also on the transformers and lines upto the
capac- itors reduces giving capacity relief. A high power factor can help in utilising the
full capac- ity of your electrical system.
Cost benefits of PF improvement
While costs of PF improvement are in terms of investment needs for capacitor addition the ben-
efits to be quantified for feasibility analysis are:
a) Reduced kVA (Maximum demand) charges in utility bill
b) Reduced distribution losses (KWH) within the plant network
c) Better voltage at motor terminals and improved performance of motors
d) A high power factor eliminates penalty charges imposed when operating with a low power
factor
e) Investment on system facilities such as transformers, cables, switchgears etc for
delivering load is reduced.

Selection and location of capacitors

Direct relation for capacitor sizing.

kVAr Rating = kW [tan 1 – tan 2]

where kVAr rating is the size of the capacitor needed, kW is the average power drawn, tan 1
is the trigonometric ratio for the present power factor, and tan 2 is the trigonometric ratio for
the desired PF.
1 = Existing (Cos-1 PF1) and 2 = Improved (Cos-1 PF2)
Alternatively the Table 1.2 can be used for capacitor sizing.
The figures given in table are the multiplication factors which are to be multiplied with the
input power (kW) to give the kVAr of capacitance required to improve present power factor to
a new desired power factor.
Example:
The utility bill shows an average power factor of 0.72 with an average KW of 627. How much
kVAr is required to improve the power factor to .95 ?

Using formula
Cos 1 = 0.72 , tan 1 =
0.963Cos 2 = 0.95 , tan 2
= 0.329
kVAr required = P ( tan1 - tan2 ) = 627 (0.964 – 0.329) = 398 KVAr

Using table (see Table 1.2)

1) Locate 0.72 (original power factor) in column (1).
2) Read across desired power factor to 0.95 column. We find 0.635 multiplier
3) Multiply 627 (average kW) by 0.635 = 398 kVAr.
4) Install 400 kVAr to improve power factor to 95%.
Location of Capacitors
The primary purpose of capacitors is to reduce the maximum demand. Additional benefits are
derived by capacitor location. The Figure 1.9 indicates typical capacitor locations. Maximum
benefit of capacitors is derived by locating them as close as possible to the load. At this loca-
tion, its kVAr are confined to the smallest possible segment, decreasing the load current. This,
in turn, will reduce power losses of the
system substantially. Power losses are
proportional to the square of the cur-
rent. When power losses are reduced,
voltage at the motor increases; thus,
motor performance also increases.
Locations C1A, C1B and C1C of
Figure 1.9 indicate three different
arrangements at the load. Note that in
all three locations extra switches are
not required, since the capacitor is
either switched with the motor starter
or the breaker before the starter. Case
C1A is recommended for new installa-
tion, since the maximum benefit is
derived and the size of the motor ther-
mal protector is reduced. In Case C1B,
as in Case C1A, the capacitor is opera- Figure 1.9: Power Distribution Diagram
energized only when the motor is in IllustratingCapacitor Locations
 TABLE 1.2 MULTIPLIERS TO DETERMINE CAPACITOR kVAr REQUIREMENTS FOR POWER
FACTOR CORRECTION

tion. Case C1B is recommended in cases where the installation already exists and the thermal
protector does not need to be re-sized. In position C1C, the capacitor is permanently connected
to the circuit but does not require a separate switch, since capacitor can be disconnected by the
breaker before the starter.
 It should be noted that the rating of the capacitor should not be greater than the no-load
magnetizing kVAr of the motor. If this condition exists, damaging over voltage or transient
torques can occur. This is why most motor manufacturers specify maximum capacitor ratings
to be applied to specific motors.
The next preference for capacitor locations as illustrated by Figure 1.9 is at locations C2
and C3. In these locations, a breaker or switch will be required. Location C4 requires a high
volt- age breaker. The advantage of locating capacitors at power centres or feeders is that they
can be grouped together. When several motors are running intermittently, the capacitors are
per- mitted to be on line all the time, reducing the total power regardless of load.
From energy efficiency point of view, capacitor location at receiving substation only helps
the utility in loss reduction. Locating capacitors at tail end will help to reduce loss reduction
within the plants distribution network as well and directly benefit the user by reduced
consumption. Reduction in the distribution loss % in kWh when tail end power factor is raised
from PF1 to a new power factor PF2, will be proportional to

Capacitors for Other Loads

The other types of load requiring capacitor application include induction furnaces, induction
heaters and arc welding transformers etc. The capacitors are normally supplied with control
gear for the application of induction furnaces and induction heating furnaces. The PF of arc
fur- naces experiences a wide variation over melting cycle as it changes from 0.7 at starting to
0.9 at the end of the cycle. Power factor for welding transformers is corrected by connecting
capac- itors across the primary winding of the transformers, as the normal PF would be in the
range of 0.35.
Performance Assessment of Power Factor Capacitors
Voltage effects: Ideally capacitor voltage rating is to match the s2uppl2y voltage. If the supply
voltage is lower, the reactive kVAr produced will be the ratio V /V where V is the actual
1 2 1
supply voltage, V2 is the rated voltage.
On the other hand, if the supply voltage exceeds rated voltage, the life of the capacitor is
adversely affected.
Material of capacitors: Power factor capacitors are available in various types by dielectric
material used as; paper/ polypropylene etc. The watt loss per kVAr as well as life vary with
respect to the choice of the dielectric material and hence is a factor to be considered while
selec- tion.
Connections: Shunt capacitor connections are adopted for almost all industry/ end user appli-
cations, while series capacitors are adopted for voltage boosting in distribution networks.
Operational performance of capacitors: This can be made by monitoring capacitor charging
current vis- a- vis the rated charging current. Capacity of fused elements can be replenished as
per requirements. Portable analyzers can be used for measuring kVAr delivered as well as
charging current. Capacitors consume 0.2 to 6.0 Watt per kVAr, which is negligible in
compar- ison to benefits.
 Some checks that need to be adopted in use of capacitors are :
i) Nameplates can be misleading with respect to ratings. It is good to check by
charging currents.
ii) Capacitor boxes may contain only insulated compound and insulated terminals with
no capacitor elements inside.
iii) Capacitors for single phase motor starting and those used for lighting circuits for
volt- age boost, are not power factor capacitor units and these cannot withstand
power sys- tem conditions.

Energy Efficient Appliances

Energy efficient appliances perform the same function as traditional appliances but consume
significantly less electricity. These appliances help in reducing electricity bills, lowering energy
consumption, and reducing environmental impact
Key Examples:-
**LED Bulbs:** Use 80–90% less energy than incandescent bulbs.-
**BLDC Fans:** Consume 28–35W compared to 70–80W in conventional fans.-
**Refrigerators:** Inverter technology reduces power consumption.-
**Air Conditioners:** Inverter ACs adjust compressor speed to save energy.-
**Energy Efficient Motors:** Used in industry for reduced power consumption.-

Star Rating (BEE Star Rating) In India,

star ratings are provided by the Bureau of Energy Efficiency (BEE) to indicate how energy efficient
an appliance is.
Meaning of Star Ratings:-
1-Star:** Least efficient-
5-Star:** Most efficient
BEE Label Contains:- Number of Stars- Annual Energy Consumption- Brand & Model- Star Rating
Validity- BEE License Number- Verification QR Code-

Benefits of Energy Efficient Appliances-

Lower electricity bills-
Better performance-
Reduced carbon footprint-
Long-term cost savings-
Environment-friendly—

. Example Comparison (Approx.)

3-Star AC vs 5-Star AC
3-Star AC: ~1000 units/year-
5-Star AC: ~650 units/year-
Savings:** ~350 units/year (~ 3,500 annually if 10 per unit)

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