Energy management consultation and training project (EMCAT) : demand-side management -- final report, March 1994-September 1997

The contract addressed four major topics -- demand-side management (DSM), loan portfolio development (LPD), energy audit improvement program (EAIP), and the development of energy service companies (ESCOs). EMCAT also included a dissemination/training activity that included all four topics. EMCAT has helped develop programs to promote efficiency and the production of more efficient equipment. The DSM program developed at Ahmedabad Electric Company, whereby an electric utility actively promotes energy efficiency to its customers, is the first of its kind in India. Many other utilities and State Electricity Boards are in the process of restructuring and adding DSM to their operations. Under the LPD program, numerous industrial facilities in seven energy-using industrial sectors were surveyed. Energy improvements were identified, and calculations made to determine the cost, energy savings, and payback period of those measures. Many recommendations have been implemented, although the majority are waiting for financing. Through the EMCAT program, energy auditors were trained to conduct detailed energy audits and were provided with U.S.-manufactured equipment at a subsidized cost. Several Indian ESCOs were developed, mainly by establishing joint ventures with U.S. ESCOs. The ESCO concept should do well in India, as there is no shortage of energy efficiency projects to tackle. The development of these ESCO firms should enhance the implementation rate of other EMCAT activities, especially the DSM and LPD activities. When the ESCOs can show customers that they will incur no out-of-pocket cost to implement energy efficiency projects, their businesses should grow tremendously. The municipal energy audits focused on domestic water pumping. Many Indian cities pump their water from rivers that are several miles away. In many cases, the cost of pumping is the largest part of the total cost of supplying water to the city. For water pumping installations, the potential for savings, even from simple routine maintenance improvements, is great; in India, leaks are accepted as normal. It is this attitude that needs to be addressed persistently, and the costs associated with water loss need to be emphasized. Finally, training across all phases of the EMCAT project has helped disseminate the idea and principles of energy efficiency. Seminars, conferences, and short courses held in India, and two training programs were held in the United States for Indian engineers and businessmen. These highlighted U.S. firms that were implementing energy efficiency projects similar to those proposed for India. Three of the activity areas -- LPD, DSM, and EIAP -- led to identifiable energy savings, estimates of which are included at the end of the report. No energy savings can be computed for the ESCO activity, as no projects have been implemented. (Author abstract, modified)