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December 26, 2016

"Energy Efficiency Management Project (EEMP) for Industrial Sectors in Pakistan"
The gap between demand and supply of energy can be minimized by quick action of demand side management

PhotoElectrical measurement by JICA Expert

Lahore, December 26, 2016: Pakistan is facing acute energy shortage and continuous power outages and the high electricity price pose significant challenges to industry and economic growth of the country. Power supply is approximately 75% of demand and forcing the industrial sector to breakdown their manufacturing operations persistently. It is observed that there is a gap between demand and supply. Government of Pakistan is considering covering this gap through power generation projects which entails a long process. However, the gap can also be minimized by quick actions of demand side management and eliminating inefficiencies in energy use. This calls for change in attitude towards energy consumption. More critical is how efficiently these energy sources can be utilized.

In order to address energy shortage in Pakistan in general and Industry in particular, a two year technical cooperation project was implemented since March 2015 on request and in collaboration with Small and Medium Enterprises Development Authority (SMEDA), Ministry of Industries and Private sector, which concluded with remarkable results. A considerable amount of energy saving potential has been identified both in terms of Electrical and Thermal Energy (Electrical: 1,296,087 KWh and Thermal: 1,214.4 MMBTU), which corresponds to PKR 20,189,250/-. On the other hand, annual energy savings of 812,577 KWh (Electrical) and 1,214.4 MMBTU (Thermal) which collectively amounts to PKR 12,484,758/-, have been realized with an average payback of around 6 months. Based on successful execution of the project, various Auto Parts Manufacturing units have strongly desired for Energy Audits of their facilities which itself is a testimony of project success.

To achieve the said results, Japan International Cooperation Agency (JICA) dispatched Four (4) Energy Experts for technical assistance to reduce energy inefficiencies in the Auto Parts and Foundry sectors in Punjab and Sindh regions as project sites, where many small and medium auto parts and foundry manufacturers are located. Beneficiaries of the project are small and medium enterprises in Foundry and Auto Parts manufacturing industry, and Energy Service Companies (ESCOs). The Project contributed adequately to reduce energy inefficiencies at SMEs' workplaces owing to Energy Efficiency Management Model by introducing Japanese Energy Conservation Tools & Methodologies and Management Practices. Since March 2015, SMEDA, under the guidance of JICA Energy Experts, introduced Best Energy Management Practices in 13 industrial units both in Punjab and Sindh Regions (8 in Lahore and 5 in Karachi) against the target of 10 units. While detailed Energy Audits were conducted in these 13 industrial units, various areas/processes of energy wastages including compressors, casting, injection molding, press/forging, generators, lighting etc. were identified and improvement plan was suggested accordingly by the JICA Experts Team.

Besides the energy audits for factories, EEMP conducted the following:

  1. Series of Training Courses for engineers (SMEDA, Factory and ESCOs) have been conducted successfully on various project related topics including;
    1. Energy Efficiency Analytical Tools for Electrical & Mechanical Engineers
    2. Energy Measuring Equipment (Electrical & Mechanical)
    3. Cable Selection,
    4. Harmonics Control etc. (Lahore & Karachi)
  2. Capacity Building of five (5) ESCOs (2 Lahore & 3 Karachi) through On the Job Training (OJT)
  3. Improved safety of the industries

This project executed exceptionally well to achieve the required result almost more than a month ahead of the project completion. The project not only met the timelines but also covered three extra units within same time-lines which are considered tangible and demonstrable achievement. This success will further contribute in the livelihood improvement, economic growth, and poverty reduction in Pakistan. Now it requires retaining its sustainability even after the departure of Japanese experts.

Pakistan and Japan are enjoying cordial relations since 60 years. JICA sincerely hopes that this cooperation will further strengthen friendship & mutual understating between the two countries and provide benefits to the people of Pakistan.

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