Power Plant Performance Optimization and Efficiency Improvement

PGES provides services in field of energy management through condition monitoring and efficiency improvement.

Condition monitoring and efficiency improvement are need of the hour in energy sector. Efficiency Improvement directly effects profitability of the unit, condition monitoring has a direct impact on reliability of the system.

Degradation in performance of the unit might be due to reasons attributed either to system problem (design related issues) or manpower related problem; both these problems have to be solved with completely different approach.

Design related problems such as part load operation/ ageing etc (thereby resulting to reduction in efficiency) requires modification in design and are solved by undergoing detailed audit of the system.

Main attributes to system inefficiency due to manpower related problem are lack of knowledge, improper operation & maintenance practices and misconception about energy saving and its impact.

The objective of Energy Management is to achieve and maintain optimum energy procurement and its utilization, throughout the organization and:

► To minimize energy costs /waste without affecting production &quality
► To minimize environmental effects.

Energy Management is defined as: "The judicious and effective use of energy to maximize profits (minimize costs)and enhance competitive positions"

In the process of energy management, at some stage, investment would be required for reducing the energy consumption of a process or utility. Investment would be required for modifications/retrofitting, implementing new systems and for incorporating new technology.

The cost involved in the proposed measure should be captured in totality viz.
► Direct project cost
► Additional operations and maintenance cost
► Training of personnel on new technology etc.

Energy Performance Contracting and Role of ESCOS

If the project is to be financed externally, one of the attractive options for many organizations is the use of energy performance contracts delivered by energy service companies, or ESCOs.
ESCOs are usually companies that provide a complete energy project service, from assessment to design to construction or installation, along with engineering and project management services and financing.

Performance contracting represents one of the ways to address several of the most frequently mentioned barriers to investment. Performance contracting through an ESCO transfers the technology and management risks away from the end-user to the ESCO. For energy users reluctant to invest in energy efficiency, a performance contract can be a powerful incentive to implement a project. Performance contracting also minimizes or eliminates the up-front cash outlay required by the end-user. Payments are made over time as the energy savings are realized.

► Traditional Contract: All project specifications are provided to a contractor who purchases and installs equipment at cost plus a mark-up or fixed price.
► Extended Technical Guarantee/Service: The contractor offers extended guarantees on the performance of selected equipment and /or service/maintenance agreements.
► Extended Financing Terms: The contractor provides the option of an extended lease or other financing vehicle in which the payment schedule can be based on the expected savings.
► Guaranteed Saving Performance Contract: All or part of savings is guaranteed by the contractor, and all or part of the costs of equipment and/or services is paid down out of savings as they are achieved.
► Shared Savings Performance Contract: The contractor provides the financing and is paid an agreed fraction of actual savings as they are achieved. This payment is used to pay down the debt costs of equipment and/or services.