In developing countries such as India, growth in the pump market has primarily been on account of the agricultural and industrial sectors. Pumps play a dominant role in infrastructure sectors such as agriculture, water and wastewater management, industries, and construction. The cost of pumping systems depends on factors such as raw material, imports and exports, electricity consumption and fuel costs. Over the past decade, technological advancements and innovations in components and spare parts have contributed to the cost reduction of pumps and pumping systems. A sudden escalation in the price of raw material used by engineering units or increase in fuel prices impacts the cost of the pump industry. In November 2020, the prices of raw materials witnessed an unexpected increase, which led to a 10 per cent hike in pump prices. The recent surge in the cost of fuels has also had a similar effect on the pump industry.
Pumping systems account for approximately 40 per cent of the electricity consumed in the industrial sector in India, or nearly 18 per cent of the total national electricity consumption. About 20 per cent of the energy consumed by pumping systems can be saved by making changes to the equipment and controlling systems. This, in turn, will generate pumping cost savings of up to 20 per cent. Industries such as irrigation, water and waste, and desalination are taking initiatives to adopt energy efficient pumps in order to reduce their overall cost of operations. Energy efficient pumping systems do not create an unnecessary strain and can be considered optimally performing pumps. A reduction in the energy requirement helps generate huge operational cost savings over time.
A snapshot of the key initiatives taken in the pump industry to reduce the energy demand and operational cost, and ensure the continuous development of pumping systems…
Key initiatives
Agricultural Demand Side Management programme
The Agricultural Demand Side Management (AgDSM) Programme is aimed at enhancing energy efficiency in the agricultural sector by reducing the overall power consumption, improving groundwater extraction efficiencies, reducing the subsidy burden on state utilities and investing in power plants. The Bureau of Energy Efficiency (BEE), in association with many discoms, has implemented four AgDSM pilot projects in Maharashtra, Karnataka and Andhra Pradesh. Through these projects, it aims to create awareness about energy efficient pump sets and operational practices to promote their uptake, thereby reducing the resultant cost.
As per the latest available data, there are more than 21 million agricultural pump sets in India, the majority of which are inefficient. The average capacity of agricultural pumps in the country is nearly 5 HP with efficiency levels of 25-30 per cent. The programme aims at replacing the existing (inefficient) pump sets with energy efficient ones at no cost so as to ensure proper energy management.
Energy Efficiency Services Limited (EESL), a joint venture of central PSUs, is implementing the Energy Efficient Pump Programme under the AgDSM, to distribute BEE-certified 5-star energy efficient agricultural pumps. It is expected to reduce a minimum of 30 per cent energy consumption. The pumps are equipped with smart control panels that can be remotely operated to increase the ease of operation. Under Phase I of the AgDSM Programme, EESL is focusing on Andhra Pradesh, Uttar Pradesh, Maharashtra, Gujarat, Haryana, Jammu & Kashmir, Madhya Pradesh, Punjab, Karnataka, Jharkhand and Rajasthan. As per the latest updates, 74,136 pumps have been installed under the national AgDSM programme. Of these, 72,070 pumps have been installed in Andhra Pradesh and 2,066 in Uttar Pradesh. The energy savings per year stand at 152.92 million units and the programme has helped save Rs 760 million per year. EESL will not only replace the pump sets, but also maintain them for the project duration, which is a key incentive for farmers. This will reduce the power purchase costs for discoms, thereby reducing the subsidy burden on the central and state governments. The replacement of 21 million pump sets with energy efficient pump sets will result in cost savings of approximately Rs 240 billion and energy savings of 56 billion units annually. It will also help in the reduction of greenhouse gas emissions, thereby benefiting the environment.
In 2017, the Uttar Pradesh government launched the Kisan Urja Daksh Pump Yojana under the AgDSM Programme. Under the first phase, 9,000 BEE-certified 5-star energy efficient pumps were distributed free of cost to farmers. In the second phase, 1 million pump sets of various ratings are to be distributed. Further, the farmers were provided with five years of free repair and maintenance, resulting in further cost savings. The scheme is being implemented by EESL.
Municipal Energy Efficiency Programme
As part of the Atal Mission for Rejuvenation and Urban Transformation, EESL with the Ministry of Housing and Urban affairs is deploying efficient pumps in more than 500 cities under the Municipal Energy Efficiency Programme (MEEP). The programme is aimed at replacing inefficient pumps in public water works and sewerage systems at no upfront cost to the municipal bodies. The investments are expected to be recovered from the savings in energy costs. With the deployment of energy efficient pumps, residents can be assured of uninterrupted water supply and the states benefit from lower municipal energy bills and reduced water wastage. As of January 7, 2021, 22 states and three union territories have tied up with EESL to implement the MEEP.
Desalination
Pumping systems are responsible for more than 40 per cent of the total energy costs at a desalination facility. The desalination facility can become more cost effective by deploying energy efficient pumps. A way of reducing energy use in the total reverse osmosis (RO) system is to incorporate larger, higher efficiency pumps that serve multiple RO systems. The Nemmeli desalination plant has successfully deployed more efficient high capacity pumps and energy recovery devices to reduce the cost of water produced by the plant to $0.55 per cubic metre in 2018.
Cost benefits of solar pumps
Solar-powered pumps make use of photovoltaic panels or the radiated thermal energy from captured sunlight. Due to lower operation and maintenance and repair costs, the operating cost of these pumps is much less as compared to grid-or diesel-powered water pumps. Hence, they are more economical and have a lower environmental impact than pumps powered by other sources. Higher demand is generated in areas with inefficient power supply and unavailability of grid power. The demand for solar pumps is steadily increasing in India owing to their cost benefits and reduced reliance on electricity. Besides, subsidies offered by the government are a driving factor in the uptake of solar pumps. A switch to solar pumps is expected to positively impact the economics of the pump industry.
Pain points and the road ahead
The pump industry is a major contributor to the country’s growth given the role of pumps as primary equipment in almost every sphere of the economy, in infrastructure and agriculture alike. However, the adoption of energy efficient pumps has not picked up pace despite their cost benefits and the government’s efforts to promote uptake. The upgradation of existing pumping systems is an immediate need. It is essential to overcome the associated challenges in order to realise the actual benefits of energy efficient pumping systems. One of the key challenges is the lack of awareness regarding the benefits of energy efficiency and demand supply management. The poor implementation of past programmes has also discouraged end users from participating in new schemes. Customers perceive high risks in adopting new technology. Another issue is the fear of loss of control and productivity.
Going forward, it is imperative to leverage IoT and automation in the pump market. With the adoption of smart pumps, the total cost of ownership will be reduced substantially without affecting the performance parameters. These pumps will increase efficiency and reduce operational costs, thereby ensuring demand management. It is also essential that the government actively participates in creating awareness about energy efficient pumping systems through campaigns, capacity building, training programmes and incentivisation.