Feasibility (Typical Case Example)

Walk through energy audits were carried out in some of

the pharmaceutical plants to access the technical and
financial feasibility of installing solar applications.
Results of one such study are given hereunder:
Example 1:
Application: The plant visited under this study has hot
water generator (steam based) to supply hot water to
reactor jacket for distillation process.
Recommendation: Install solar water heater based on
ETC to meet hot water requirement in distillation
process.
Installed Capacity =
21,100 LPD
Investment (Rs.) =

1,909,550

Payback period

1-2 years

Savings (F.O.)

38400 kg/Annum

Example 2:
Application: The plant visited under this study has boiler
to supply steam for the different processes within the
plant. The plant has the systems in place to recover a
part of the condensate and rest of the demand is being
met by supplying makeup water at normal temperature
o
of around 25-30 C.
Recommendation: Install solar water heaters based on
FPC to raise the temperature of make water to boiler.
Installed Capacity =
6600 LPD
Investment (Rs.) =

924,000

Payback period

1-2 years

Savings (F.O.)

12, 960 Liters/Annum

To preheat makeup water an open loop solar system is

technically viable.
For hot water generator system in distillation process closed
loop solar system looks more technically viable.
Field surveys revealed that units in this sector have
insufficient free space for installing solar applications
because of exhaustive utility piping network over the roof
which is generally available for solar applications in other
sectors.
When the fuel used is furnace oil, the cost benefit analysis of
installation of these solar water heating systems for
preheating of makeup water / boiler feed water shows IRRs
in the range of 4256% with subsidy and 30 to 36% without
capital subsidy.
When the fuel used is rice husk, the cost benefit analysis of
installation of solar water heating systems for preheating of
makeup water / boiler feed water shows IRRs in the range of
11-15 % with capital subsidy and 5 % without capital subsidy
with employment of distributed solar thermal technology
(ETC or FPC).
The cost benefit analysis of installation of solar water
heating systems for carrying out distillation process shows
IRR of 59% with subsidy and 38% without subsidy where
costly fuel like furnace oil for boiler is used and is to
replaced by distributed solar thermal technology (ETC).
Discussions with the unit owners indicate that awareness
level needs to be increased.
Central and State Government can promote solar systems in
pharmaceutical industries by creating awareness about the
usage of system and formulate potent measures to weed
out technical bottlenecks in integrating SWH systems in
pharmaceutical units.

Findings
Some of the major findings from the field visits to the
units in this sector are:
Most of the processes in pharmaceuticals
manufacturing use steam so it is a viable option to
install solar water systems for makeup water heating
for the boiler to replace the portion of the existing fuel
use.

Note: Photograph shown in title page has been taken from the web
(www.2point6billion.com)

Pharmaceuticals
A
Potential sector for
Solar Energy Applications

Project Background

Product Category

The project Commercialisation of Solar Energy in Urban and

Industrial Areas ComSolar is a joint effort of the
Governments of India and Germany, represented by the
Ministry of New and Renewable Energy (MNRE), and the
Federal Ministry for the Environment, Nature Conservation
and Nuclear Safety BMU who engaged Deutsche
Gesellschaft fr Internationale Zusammenarbeit (GIZ) with the
implementation. The project aims to commercialize solar
applications by encouraging their use in urban and industrial
applications by undertaking pilot projects and developing
viable business models.
In the initial stage, 37 industrial sectors were chosen for the
study. A framework was developed to filter the most
promising 10 industrial sectors that have highest potential for
solar energy applications. The study revealed that the
Pharmaceutical sector falls in these 10 most promising sectors.
A detailed study was undertaken in the Pharmaceutical sector
where a few industrial units were visited to find practical
applications which are technically feasible and financially
viable.

Sector Introduction
rd

The Indian pharmaceutical industry is ranked 3 in the world in

th
terms of production volume and 14 in terms of domestic
consumption value. The industry is growing at the rate of 14%
per year. This industry was estimated at USD 19.4 Bn in FY09.
Formulations account for about 65% and bulk drugs for the
balance 35% in value terms. The industry is expected to reach
USD 43.8 Bn in FY14. Bulk drug exports are expected to grow
the fastest at about 35% followed by formulation exports at
about 25%. The domestic formulation market is expected to
grow at about 11% with key growth drivers being increased per
capita spend on pharmaceuticals, improved medical
infrastructure, greater health insurance penetration and
increasing prevalence of lifestyle diseases.
Today, the Indian pharmaceutical sector meets 95% of the
country's medical needs. Indian companies manufacture a wide
range of generic drugs (branded and non-branded),
intermediates and bulk drugs/Active Pharmaceutical
Ingredients (API).

Energy Consumption Scenario

The Pharmaceutical Products are mainly classified into two

Categories, Bulk drugs and Formulations.

BULK DRUGS

FORMULATIONS

OMEPRAZOLE IP/BP/USP
ACETAZOLAMIDE
BENZYL PENICILLIN
SODIUM

TABLETS
CAPSULES
SYRUPS
AEROSALS

Because of it size, pharmaceutical sector consumes a

significant amount of energy in India. Pharmaceutical sector
consumes around 0.93 Mtoe* of energy consumption every
year. This sector uses both thermal and electrical energies in
equal proportions. Figure given below shows the share of
different sources of energy in Pharmaceutical industry:
4%
15%

Coal
Electricity

27%

Process Flow

Petroleum Products

54%

Other Fuels

Solar Energy Applications

Technology Mapping

The sector consumes both electrical and thermal form of

energies. Hence, the chances of replacing conventional
sources of energy by solar energy are more here. Also, It is a
proven fact that solar energy can replace thermal energy
more economically and viably than electrical energy. Most
of thermal energy applications in pharmaceutical units
require low range temperatures which are easily achievable
by the use of solar systems. Solar energy may also replace
electricity, if sufficient free space is available within the
plant. The process wise solar mapping is shown below:
Industrial
Process

Application
Media

Distillation

Hot Water

Evaporation Steam
Drying

Temp
Requirement
C
55-80
>120

Steam/Hot Air >120

Recommended
Solar Technology
FPC/ETC
Solar
Concentrators
Solar Hot Air
System

*Energy consumption in the year 2007-08 as per ASI database.