This document discusses good practices for procuring energy efficient technologies (EET). It recommends that companies first have an energy audit to identify opportunities and associated costs and benefits. For high-investment projects, a detailed project report should be prepared with sensitivity analysis before implementing. Companies should also assign an in-house project team to manage EET procurements and provide capacity building. When evaluating bids, companies should not just consider the lowest quote but also technical specifications, standards compliance, vendor experience and references, performance guarantees, and local support.

1. ENERGY EFFICIENT TECHNOLOGY PROCUREMENT:SOME GOOD PRACTCES:
Once an Energy auditor presents to the management a list of opportunities with potential, cost
benefits, vendor information etc, the implementation process begins and while housekeeping,
no cost, low cost measures are easy enough to implement without hassles, EET procurement
and implementation is often a concern area, especially in several SMEs and traditional units,
where in- house techno-managerial skills are found wanting.
These concerns include Information overload on one hand and EET vendor push on the other,
alongside considerable technical and financial risks.
Some proven good practices for management consideration in EET Procurements are as
follows:
1. Categorize opportunities and, for prioritized high investment, high technology interventions,
opt for a DPR preparation with due sensitivity analysis before implementation. Some projects
may involve residual life assessment, renovation and modernization, process line balancing
etc.
2. Assign a dedicated and empowered in-house project management team, inter-departmental
preferably, and provide for its capacity building on EETs proposed.
3. Just lowest quotation approach in procurements is dangerous and can lead to repentance
later.
Here follow supportive procurement criteria that managements may insist on, apart from
competitive financial bids:
• Information on Design/Technical specifications, QA features. (Sometimes sharing
proprietary design information may be denied)
• EET Compliance with relevant International/local standards
• International partners/tie-ups of suppliers
• Vendor readiness to include supply, erection, testing and commissioning in scope.
• Referrals of vendor clients served in the region/ facilitation of visits to such sites.
• Performance guarantees.
• Vendor acceptance of third party verification.
• Acceptance of Penalty clause in case of non-performance.
• Vendor training of plant staff and hand-holding for a few weeks, if not an O&M contract,
as needed.
• Local/regional presence of EET suppliers for spares, consumables, maintenance
services.
• On line Instruments provision to facilitate Pre and Post performance monitoring of EETs.
Given that EET vendors may not agree to fulfill all these criteria, it is desirable that
managements may incorporate selectively, some of these criteria in EET procurement process
for technical and financial risk minimization.