National Motor Replacement Program

NMRP

NMRP Programme

Preface

Globally, Industrial sector is known to be the largest electricity consumer, 70% of which is contributed by electric motor systems alone. In India, about 40% of the total electricity consumption is contributed by the industrial sector. Electric motor-systems use 28% of total national electricity which is reasonably high.

Historically, the motors sold (and used by end-users) in India have lower energy efficiencies (IE-1 or less) than the efficient products technologically available and manufactured. Based on estimation, 90- 95% of the current installed stock of motors is at IE1 & sub-IE1 levels. The issue of multiple rewinding in the service life of motor(s) further reduces the efficiency drastically. This results in more energy consumption, hence affects the competitiveness of any business entity.

Further, Department of Industrial Policy & Promotion (DIPP) has issued a Quality Control order requiring all imported and domestically manufactured motors to conform minimum IE2 class of efficiency as per the revised IS:12615 with effect from 01.01.2018. It is a great opportunity for the motor users to leap frog to the readily available even higher technology like IE3 class of motors.

About NMRP

EESL’s National Motor Replacement Program (NMRP)

Riding high on the success of “Demand Aggregation” model in energy efficient products, EESL aims to create an infrastructure to fuel supply for High Efficient Motors adhering to IE-3 standard through upfront investment, awareness creation, capacity building of manufacturers and developing success cases to convince decision makers.

The National Motors Replacement Programme (NMRP) shall offer appropriate technical specifications (as per IS-12615) keeping in mind key customer pain points viz. high initial costs, high operating and maintenance costs and quality of the products.
EESL is targeting the 3-phase LT induction motors in the capacity range of 0.75 kW to 75 kW preferably directly-coupled with loads like pumps, fans, blowers, air compressors etc.

Key Technical Specification

Parameters Specifications (As per IS 12615)
Type 3-Phase, LV Induction Motor
Pole 2,4,6
Mounting Foot  & Flange
Voltage (V) 415 V (±10%)
Frequency (Hz) 50 Hz (±5%)
Efficiency Class IE-3
Ratings (kW) 0.75, 1.1, 1.5, 2.2, 3.7, 5.5, 7.5, 11, 15, 18.5, 22, 30, 37, 45, 55, 75

FINANCIAL MODEL

EESL Model # 1: PMC Model / Supply Contract

In the Project Management Consultancy (PMC) model, the user shall bear the product cost whereas EESL provides the PMC support to the users. The PMC support includes the following:

Finalization of the scheme for replacement: Number of motors to be replaced, technical specifications, estimation of energy saving, investment requirement etc.

Procurement of Motors: Through open competitive bidding

Supply of Motors at User Site: Facilitation/Management of supply of motors at the user site with due co-ordination with the supplier

Warranty Obligation: Ensuring the warranty obligation with the supplier

Update in National Motor Dashboard: Estimated Energy Saving and other benefits to be reflected in a national dashboard

Payment Terms: The user shall be liable to pay the entire project cost post-delivery of motors within mutually agreed time frame (typically within 30 days)

EESL Model # 2: ESCO Model / Shared Saving Model

In this model, the entire upfront investment will be done by EESL in addition to the PMC activities as described above. Here, the project cost will therefore be material cost-plus PMC fees plus the finance cost for timeline mutually agreed by user and EESL. Here, repayment to EESL by the user will be done through Equated Quarterly Instalments (EQIs) for three-year period. For this modality client has to submit the payment security (BG/LC) to EESL.

It is observed that the repayment amount to EESL by the end-user is about 50-70% of the monetized savings accruing through the improvement in efficiency of the motor.