N.

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3. ENERGY M'ANAGEMENT,AND AUDIT

Syllabus
Energy Management & Audit:
Definition, Energy audil- need, Types of energy aldit,
cTgy management (audit) approach-understanding cnergy costs, Bcnch mark ing Energy
pertormance, Matching encrgy use to
requircmenm,
Niaximizng yate
pming the input energy requiremenls, Fucl and e'1ergy sub',itlulea
Instruments

3.1 Definition & Objettives of nergy Managenept

The fundamental goal of energy management is to poduCe gods ndpio tei
lcast cost and least cnvironmcntal
cflec
n e term energy management means many things fo many peopB 11edet af

ey management iS

"The judicious and effective use ofenergy to maximize profits (mininize

cOsts) and enhunce compelitive posilions"

(Cape Hart. Turnerand Kennedy. Guide to Fnergy Management Farnonl ps

'
Another comprehensive definition is

"The stratcgy of adjusting and optimizing energy. using systems nd r e

redue eneryy requirements per unil of output while holling U r i uf fi

cosis of producing the output lrom these sy slens*

The objective of Energy Managèment is to achieve and maintain optimum energy procurement
and üilisation. throughout the organization and:

To mininmise energy costs/waste without aftectin produetion & quiy

To, minimise environmenlal efiects.

nergy Audit: ypes And Vetlhoudol

Energy Audit is the key10a systematuy approach lor deciiol-1it.tile il, hi
agement. II attempts to balance the total energy inpuls willh its usc. t t
the energy streams in a facility. It yuantilies ciergy usiict ndine t

Industrial energyaudilis a l ellectivetool in delning and puisung cnpreheihivt iic it

agement programme.
As per the Energy Conservation Act, 2001, Encrgy Audit is defined as "the verilieaion. imon-

Burcau of Energy EIiciency

 3. Encrgy Management andAudit

TtOrng and
analysis of use of energy including
ommendations for improving energy submission
efficiencywith cost benefit and ancontaining
aanalvsis,report
of technical action piani to
teduce energy consumption.
3.2.1 Need for Energy Audit
In any industry; the three'top operating expenses are often found to bC c lectrical,
ana
thermal), labour and materials. If one were to relate to the manageabiy
Pochtiar cost savings in each of ihe above components, energy would invariably eicrec d
Op ranker, and thus energy
management function constitutes a strategic arva lot tot
nergy Audit will help to understand more about thc ways cnergy and ic.
naustry. and help in identifving the areas where waste can oceur and where seope or
ment exIsts.
he
Energy Audit would give a positivé orientation to the energy cost reduction, preventive
maintenance and quality control programmes which are vital for production and utility activi-
ies. Such an audit programme will help to keep focus on variations which occur in the cfherev
costs. availability and reliability of supply of energy. decide on appropriate ene
fy energy conservation technologies, retrofit for energy conservation ejunpne
In general. Encrgy Audit is t h e translation o f conservation idets iitu roalii g

technically feasible solutions with economic and other organizational consideratons w Ithin
specified time frame.
The primary objective of Energy Audit is to determine ways to recduce energy consumpiion
per unit of product output orto lower operating costs. Energy Audit prevides" he i
(Reference point) for managing erergy ih the orgarization and also próvales th his
ning a more effective use of energy throughout the organization.

3.2.2 Type of Energy Audit

The type of Energy Audit to be performed depends on:
Function and type of industry
Depth to which final audit is needed. and
Potential and magnitude of cost reduction desired
Thus Energy Audit can be elassified into the lulow ing two types.
i) Preliminary Audit
11) Dctailed Audit

3.2.3 Preliminary Energy Audit Methodology

exercise to
Preliminary energy audit is a relatively quick
Establish cnergy consumption in the organization
Estimate the scope lor savng
the easiest arcas for attention
Identify the most likely (and
Identify (especially nq-/low-cost) improvenents/ savings
immediate
Set a 'reference point
areas for more detailed study/measurenient
ldentify obtaned data
audit uses existing, or easily
Preliminary energy

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 3. Energy Management and Audit
3.2.4 Detailed
Energy Audit Methodology
A
COmprehen_ive audit provides detailed energy
since it a
project implemcntation plan tor kCT
a

evaluates all major

his type energy using systems.
of audit offers the most accurate estimate of
ne interactive
effects of all projects, atcounts for the energy savings and cost.T cosic
of all major equipnient,
inclydes detailed energy cost energy use
ai
In a
saving calculations. and project &ost.
comprehensive audit, one of the key clements is the cnergy balance. Thi hised
ofn
nventory of energy using systems, assumptigns of currcnt
ot
operating conditions
dind
caiiiatiis
energy use. This estimated use is then compared to utility bill eharges.
Detailed energy auditing is carried out in three
phases: Phase I. I| and i
Phase 1 - Pre Audit Phase
Phase 11 - Audit Phase
Phase Ill - Post Audit Phase

A Guide for Conducting Energy Audit at a Glane

Industry-to-industry, the methodology of Encrgy Audits necds to be flexible.
A comprchensive ten-step methodology for conduct of Energy Audit at ficld lod is pro.
sented below. Energy Manager and Energy Auditor may follow these steps to start with and
add/change as per their needs and indu_try types.

50
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 Audit
Ten Steps Methodology for Detailed Energy

PLAN OF ACTION PURPOSE /RESULS

Phase 1-Pre Audit Phase

Plan and organise Resourcc planning. LstaDlis
Walk through Audit Encrgy audit team
Organize Instruments & time frame
Informal Interview with of
Energy Manager. Production Macro Data collection (suitable 1u ty pe
/ Plant Manager ndustry.)
Familiari/ation ot proe
&
First 'hand obscrvati
Current levcl peraliin iid pruui -

Conduct of brief mcting / Building upcooperation

awareness programme with| Issue questionnaire for each depr
all divisional heads and Orientation. awarene
persons concerned (2:3 hrs.)

Phase il -Audit Phase

.Primary data gathering. Historic data analysis. Baseline data
Process Flow Diagram, & collection
Encrgy Utility Diagram Prepare process ilow charis

the asomgement All service utilitics

(Example: Single ine pow.
he equpment onuLd
diagram. water. compressedair
acnosies rlguiud distribution.
Design. operating data and schiule
pLeaPAoe operation
Annual Energy Bill and ener
pattern (Refer man.ial.g s
1ntervieW)

Conduct Survey and

Measurements
monitoring Motor survey, Insulution. and Lighting
survey With portable nstrumc Tor
collectuo o
Contirn1 d conp.ire oiitiig d
design dalt.
Conduct of detailed trials
experiments for selected Trals/Experiments:
24 hours power monitorng (AD. PE.
energy guzzlers kWh etc.).

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 . Energy Management and Audit

Boiler/Efficiency trials for 4 8

hours)
Fumace Eiicu y ti ial
quipments Perfoianc e
CXpercnts ete

Analysis of energy use Energy and Material balance energy

loss/waste analysis

Identification and Identification & (Consolidatiw NCON

developmént of Energy IIcasures
Conservation (ENCON) Conceíve, develop, and refine idea
opportunities. Review the previous ideas suggested by unit
personal
Review the previous jdeas surge ted by

energy audit if any

Use brainstorming and valu: aualysis
techiques
Contact Vendors for new/citiCIcnt
technology

Cost benefit analysis Assess technical feasibility. e1n

Viability and prioritizátion vCON
options for implementation
Select the most promising projects
Prioritise by low, medium. long ter
measures

Reporting & Presentation to Documentation. Report fPrsenit tr

the Top Management lop Maagenent.

Phase 1l1-Post Audit phase

Implementation and Follow- Assist and luuplementENCON reconendation
up measures and Monitor the pertormanee
Action plan. Schedule for
implementalion
Follow-up and penodie reviu

Bureau of Energy Elicieney 8

 Phase 1-Pre Audit Phase Aetivities
for eflicicni work ng. A
IKcessary
audit is
of the proccdures neceCS
A structured methodology to Carry out an energy
inital study of the site should always be carricd out, as the planning

sary for an audit is most impotant.

Initial Site Visit and Preparation Required for Detailed Auditi

the nerg Auditor ngneei
l
opo
may take
Site Visit one day and gives the procCaures te
a him with the site and
to assess
e e t the personel concerned, to familiarize

CSsary to carry vut the energy audit. the followii

Auditor ngineer should carry'out
u i n g the mital site visit the Energy
actions: udil
ol ihe cergy
Diseuss With the site's senior mangement the ams

with the reconendations the iud of

DIscuss ceconomie guridelines ia_sociated
data wiuh the relevant petsonei
Aalyse the major energy consumption steam distribution,
compresscd ai
drawings where available building layout,
-

Obtam site

distribution, electricity distribution ete.

lour the sile aecompanied by engincering/production

The main aims of this visit are: -

To finalise Fnergy Audit teann

items to be surveyed during the audi.
To identity the main energy consuming areas/plant
additional metering required
Toidentity any existing instrumentation/ kWh. sie im
meters will have to be installed prior to the audit ey

Todecide whether any

oil or g s meters.
for caryng out the idin
To dent1ty the nnstrumenlaton recquired
To plan ith time ranme
cenlCIs
resources, majOr energy consuing
To collect macro data on plant energy
To create awareness through meetings programme

Phase I1- Detailed Energy Audit Activities

on the nature ad complenity ot the

site. a comprehensive audit n tktron
Dependng
eral weeks to several months tp complete. Dettiled studiesto establish. and uneslate. CncT
cupnil
andmateial balances tor specilc plant departients or tens otpIOCUSs
out over exIended of
are carried periods
out. Whenever possible, checks of plant operalions
normal daytime working hours, to cnsure 'that
time, at nights and at weekends as well as quring
nothing is overlooked.
The audit report Will nclude a description o energy i)uls nd prvfuci pulils y ma

lunction. nd will ealui.ite the ctfteIene oti enth

department or by mijor processng eist
manutacturng process. Mc:ans of miprovng these e l l i n s
will be hsted and,
liminary assessment of the cOst ol thc nmprovelenls wli be i a l to hie.lle iie C i e d piyr

back capital investnient needet. Ihe audil report should conelude with speeitic recom-
on any
studies anl leasibihty analyses, which uhust then be per-
mendations for detailed engineerng that
of thosC Conservaluon ie:asures require inestmenis
formed to justify the implementation

Burcau of Energy F licicney

 The
mtormation to be collected during the detailed audit includes: -

C E COnsumption by type of energy. by department. by major items of picess c

ment, by end-use
Iaterial balance data (raw materials, intermediate and tinal products, recyclca
materials. use of scrap or waste products. produrction of by-products for re-use in olnet

ndustries, etc.)
Energy cost and tariff data
Process and material tlow diagrams
Generation and distribution of site services (eg.compressed air, steam).
Sourees of energy supply (e.g, electricity from the grid or self-generation)
Potential for fuel substitution. process modifications. and the use of co-generation
systems (combined heat and power generatión)
Energy Management procedures and cnergy awareness training prorn
establishment.
Existing baseline information and reports are useful toget consumption patlern. prodiciion os
and productivity levels in terms of product per raw material inputs. The audit team shuuld cp
lect the following baseline data:
Technology. processes used and equipment details
Capaciry utilisation
Amount & type of input materials used
Water consumption
Fuel Consumption
Electrical energy consumption
Steam consumption
Other inputs such as compressed air. cooling water ete
Quantity & type of wastes geñerated
Percentage rejection reproçessing
Efficiencies yield

DATA COLLECTION HINTS

It is important to plan additional data gathering carefully. Here are some basie tips to avoid wastin
and effort:
measurement systems should be easy to use and prOVIde the information te the acet:iy hatis
needed, not the accuracy that is technically pussible
measurement equipment can be inexpensive (flow rales using a bucket and stopwateh
the quality of the data must be such that the correct conclusions are drawn (what grade of prod
uct is on, is the production nornal etc)
define how frequent data collection should be lor process
to account
vaiattons
measurement exercises overabnomal workload periods (such as startup d shudw
design values canbe,taken wlhere measirements are dilliult (coolingg water thruugh hea nenun

cr)
DO NOTESTIMATE W'HEN YQU CAN CALCULATE
DO NOT CALCULATE WHEN YOU CAN ME:ASURE

Burcau of Energy Eficieney