GIZ Seminar

Overview of EnMS Implementation in Foundry Sector of Pakistan
 
One of the major problems faced by the foundry industries of Pakistan is energy crisis which has affected the production and their supplies to the OEM resulting in financial crisis. For the solution of energy problem, PFA with the support of SMEDA and GIZ (a team of German experts) has planned to bring out its member foundries from the crisis of energy. The Renewable Energy & Energy Efficiency project, sponsored by the German Development Cooperation, through Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) GmbH in Pakistan was initiated in 2005. The focus and objective of the project was to promote Renewable Energy (RE) technology applications and improve Energy Efficiency (EE) in selected industrial sectors of Pakistan. The energy efficiency component of the project provides technical support to SMEDA and the relevant industrial associations in promoting the application of Energy Management System (EnMS) and energy efficiency in different industrial sectors of Pakistan. In this regard, GIZ in collaboration with SMEDA and Pakistan Foundry Association (PFA) has implemented the EnMS in five pilot foundries.
In this regard GIZ team has conducted several meetings with PFA team and updated about the salient features of their program. In this regard a dissemination seminar was conducted on June 7, 2013 at hotel Avari for the introduction of Energy Management System. Mr. Bernhard Meyhoefer, a representative of GIZ at Islamabad, informed the house about the potential benefits of EnMS for foundry industry which was followed by question answer session.He added that for the proper implementation of EnMS, a foundry must fulfill the basic criteria as designed by GIZ.
 
PFA members shown keen interest in EnMS and applied for registration. After analysis PFA has selected 11 foundries out of which five foundries were finally selected for pilot project. GIZ team has conducted initial survey on July 11, 2013. The objective of pilot project was to make foundry sector Energy Efficient and self sustainable.
 
Names of 5 pilot foundries: Qadri Brothers (Pvt.) Ltd. KSB Pumps Company Ltd. Chicago Metal Works, Ravi Autos (Pvt.) Ltd and Steel casting & Engineering Works (SCEW).
 
Principles of Energy Management
 
 
  •  Procure energy at lowest possible price
  •  Manage energy use at highest energy efficiency
  •  Reusing and recycling energy
  •  Select low investment technology to meet                            present requirement and environment condition
  •  Make use of wastes generated within theplant                    as sources of energy and reducing the component              of purchased fuels and have lower energy bills
 
 
Capacity Development of Staff
 
  • Designation of Energy Manager
  • Formation of Energy Team (Utilities, Production, Finance)
  • Training of Middle and Higher Management on Energy Management System and synchronization with other management systems incl. introduction of energy Key-performance indicators (KPI)
  • Training of Technical Staff on Energy Auditing (Data measurement, analysis, developing baseline, energy efficiency program sustainability)
  • Training of I.T Staff and Energy Team on Energy Information System Software
  • 3 months monitoring for impact analysis and continuous improvement

 

Road Map to Project Implementation
 
 
1- Check eligibility for participation in EnMS pilots
 
- Interested companies are evaluated for management commitment,
availability & qualification of technical staff, willingness to implement
energy saving solutions and saving potential in their factories.

 

2- Introduction of Energy Management System
 
Define energy policy; assign tasks and responsibilities for energy
management, set targets for reduced energy consumption.
 
- Energy Audit
 
Baseline Audit of energy consumption, energy costs and recommendations for improvement of energy efficiency. Definition of energy efficiency improvement measures – development of EE action plan.
 
 
Energy Information System
Implementation of system for monitoring of energy consumption and energy related costs
 
- Training of staff (Energy Management Team)
Training on Energy Audit, Monitoring and Documentation of energy data, and Energy Management. 
 
- Follow-up
Consultants, SMEDA & GIZ guidance during implementation of energy saving solutions and monitoring of specific energy consumption for 6 months - after completion of Energy Audit and approval of EE action plan - incl. guidance in conducting first internal audit and evaluation of EE improvements achieved.
 
EnMS Ongoing Activities / Future planning
 
  • GIZ to support 3 more PFA member foundries for EnMS implementation in current project
  • Success stories of 5 pilot foundries will be published in Element magazine to enable other foundries to join EnMS. The results of EnMS implementation of 5 pilot foundries under the GIZ REEE Project shows that the five foundries are collectively saving about 112 MWh of equivalent amount of electricity per months. In monetary terms, the five foundries are saving about MPKR 2.14 per month. This energy saving has also resulted in reduction of the Green House Gases (GHGs) emissions and about 51 tons of CO2 is being reduced per months resulting in positive impact on the environment. 
Energy Managers Training (EMT) for Foundry Sector
 
  • GIZ can support SMEDA and PFA to conduct an EMT for foundry sector
  • GIZ will engage an ISTE Mr. Koerber to train the energy managers and CEOs / MDs / GMs of PFA member foundries during August / September 2014
  • ISTE training will enable energy managers to organize these type of energy managers training by them selves

 

Role of PFA

  • Independent energy cell should be established under the
  • supervision of PFA
  • PFA should organize awareness workshops/seminars with EnMS
  • results obtained in pilot foundries and guide for the development
  • of new processes in them
  • PFA should start marketing campaign for Energy Management System and its savings so far by investing in print media such as in business recorder etc
  • PFA will plan to visit member foundries and communicate the owners of SME about EnMS and energy improvements
  • To make the energy management system sustainable, SME sector should hire more professional engineers.

Role of SMEDA

  •  Industry linkages cluster development for SME’s for energy efficiency
  •  SMEDA along with PFA to make a target list of companies – Prepare a professional team to market the idea
  •  SMEDA should initiate with the help of federal Government to give co-financing for energy improvements for industry

Role of GIZ

  • There should be support from GIZ for energy manager training programs with local as well as international experts
  • Support from GIZ for the preparation for detailed energy manuals for foundry sector
  • RE development applications should also be shared with foundry sector
  • GIZ should indicate the financial institutes who can facilitate industry with loans with low markups
  • GIZ can provide trainings to the members of energy cell of PFA
  • GIZ can provide a structural approach to start performance contracting in the foundry sector

Role of ESCO

  • For improved role of ESCO, all stakeholders should work together and there should be strong coordination between them
  • Energy Management System plan, technical details and economic analysis should be explained and presented in the easiest and most friendly way
Challenges of Foundry Sector regarding EnMS implementation
No energy cell to coup up with the technical issues
 
- Conventional technologies (energy in-efficient)
- Lack of training of work force on energy efficiency
- Financial barriers to implement EnMS programs
- Unavailability of subsidy schemes (banks, financial cooperation) in country regarding Energy Efficiency   program
- Management is reluctant to adopt advance technology and to implement EnMS
- More technical input required regarding the EnMS
- Less understanding for effective use of advanced tools i.e. Energy Information System (EIS) Software     etc.
- Weak linkages between foundries for sharing of useful information w.r.t energy efficiency
- Understanding of top management on energy efficiency
- No role models for energy efficiency in foundry sectors.
 
The German Development Co-operation Pakistan also conducted two and half day training program on the market development for the energy services based on different approaches available internationally. The purpose of the workshop was to discuss with national as well as international experts the current situation of the Pakistani energy saving companies, factors which impede its development, an outline away forward to overcome the major barriers. Two experienced international experts Mr. Simon Zellner and Mr. Janw. Bleyl presented ESCO business modals successfully implemented in other countries.
 
The workshop was held on 11-13th March 2014 at P.C Hotel, Lahore which was fully sponsored by GIZ REEE for boarding and lodging for out station participants.

After successful implementation of EnMS in five pilot foundries, PFA with the guidance of GIZ has initiated the performance contracting activity for the upcoming three foundries to ensure the sustainability. The performance contracting will be accomplished between the consultant and the foundries on commercial basis. The consultant will work in the foundry for energy efficiency improvement while the consultant will be paid upon successful implementation of EnMS and upon satisfaction of the top management of the factory.
 
Capacity Development of Staff
 Designation of Energy Manager
 Formation of Energy Team (Utilities, Production, Finance)
 Training of Middle and Higher Management on Energy Management System and synchronization with other management systems incl. introduction of energy Key-performance indicators (KPI)
 Training of Technical Staff on Energy Auditing (Data measurement, analysis, developing baseline, energy efficiency program sustainability)
 Training of I.T Staff and Energy Team on Energy Information System Software
 3 months monitoring for impact analysis and continuous improvement