1. COMPONENT 3: ENERGY EFFICIENCY
IN INDUSTRIES
Energy Efficiency Center
Energy & Environment Division
FNCCI
Dr. Uttam kunwar,
Project Manager
05 August 2013
Kathmandu
Brief Status Report on

2. Industrial Energy use Scenario & Context
Operation Plan and Progress
Organizational & Management Structure
Institutional, functional and financial
sustainability
Table of Content

3. Nepalese Industrial
Context
Survival challenges
 Nepalese Industries – Security
 Electricity reliability – productivity loss by 40%
 Expensive fuel ~ over Rs.33 -40 /unit cost
 Aged technology
 Limited technical knowledge

4. Kathmandu,13.93%
Bhaktapur,3.84%
Lalitpur, 5.47%
Kanchanpur,2.89%
Morang,8.46%
Jhapa,3.98%
Parsa,6.36%
Rupandehi,6.33%
Sunsari,6.28%
Bara,5.41%
Kaski,4.12%
Kailali,3.31%
Chitwan,2.89%
Banke,2.72%
Nawalparasi,2.13%
Dang,1.51%
Kapilbastu,1.49%
Makwanpur,1.60%
Saptari,1.74%
Dhanusha,1.93%
Industrial cluster in the
country
100 % = 4310 Industry Establishments source NEEP

5. Energy Use in Industries
Boilers
62%
Motor Drives
8%
Lighting
1%
Furnace &
Kiln
29%
Source: WECS

6. Energy Efficiency & Context
 Industrial level awareness bandwidth is
wide.
 Resistance to change: attitude
 Policy & Enforcement!!
 Technology: Process efficiency &
maintenance

7. NEEP Program
Nepalese Energy Efficiency Programme (NEEP)
Govt. of Nepal and Govt. of Germany
Joint Collaboration
Component 3: Energy Efficiency in Industries
Energy Efficiency Centre (EEC)
FNCCI

8. Mission
Objective
 to provide quality Energy Efficiency
services to industrial community : 8 sector
40 Ind.
8

9. APRIL 2010: BUSINESS PLAN & OPERATION PLAN
DEVELOPED
JULY 2010: EEC FORMALIZED by 1ST CC
DECEMBER 2011: BASELINE WORK OF 200 IND.
JANUARY 2012: TECHNICAL BACKSTOPPING
FROM INTEGRATION STARTED
Key Mile Stones

10. EEC Operation Plan
Work Package - 1 Work Package - 2 Work Package -3
Outputs
 EEC established
 Data base on
energy use
 Knowledge
management
center
 Energy audit
services
 Networking with
regional
organization
Outputs:
 Auditor training
 Energy audit
report & Manual
 Accreditation of
training
Outputs:
 Quality control of
report & Capacity
development of
DCCI &
stakeholders
 Promotional
services to
banks, industry
and govt.
 Technical arm to
support to Govt.
in EE policy
formulation

11. Progress till date
WP-1
Present status
August 2013
WP-2
Present status
August 2013
 EEC fully
functioning
 On going work.
 WWW.eec-fncci.org
will be launched in
Aug.
 16 Manufacturing
 1 Service
 2 Tea
 3 Brick
 Implementation –5
 Cogeneration –
Sept.
 2 EA trainee
participating in each
audit work
 22 EA
 12 Final report
 10 draft
 5 imp plan
 FNCCI-NPC
Present status
May 2013
 Sector specific on
going
 MOU with 10 DCCI
 EE cell established
 Tec. support to 2
DCCI
NIDC Bank fund
manager-KfW,
grants
Com.1 Opt. plan

12. Estimated Saving
Potential
Based on audit :
Number of industries participated: 22
 Identified Energy saving potential:
 Electrical ~ 15-25 %
 Thermal ~20-30%

13. Long term strategy for sustainable
EE services to industries
Achievements:
 EEC-FNCCI strongly committed to provide EE services
to Ind. and has internalized the ownership of EE activity
 Trained & experienced 45 EA in market, + 2 with EEC
 Ind. Sensitized and Willingness to participate in EA
 Experience gained, networking with ind.
 EE cell established in selected 10 DCCI
Opportunities
• EE services for industries available in country

14. Challenges for long term
sustainable
NEED for sustainability
 Financial support for sector pilot ind. to
produce multiplier effect:
 Continued support to industry for
implementation of recommendation
 EA equipment with EEC for continued EE
services to Ind. / avail services of trained EA:
guided by NEEP – PPP Concept
 Capacity development of EE cell in DCCI
 Continued support to take EA to wider circle of
Ind.(sector and size)

15. Thank you!
eec@fncci.org
Uttam.kunwar@fncci.com

16. Economic Feasibility
in Million NPR
Category Total
Saving,
NPR
Total
Investment,
NPR
Avg. payback
period, month
Short term <1 yr. 129.36 42.38 Range 1 to 34 months
Indushanker:
PB over 85 months
Mid term <1 to 3 yr 36.55 67.21
Long term >3 yr 127.06 920.88 Long term: invest 900
mill
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