Practical – 2

Aim: To study of energy audit, its need, types of energy audit with steps, methodology for
detailed energy audit.

Theory

Energy Audit
Energy audit is a systematic and scientific approach to identify energy conservation
opportunities and aware about energy cost and waste with applicable recommendations for
reducing specific energy consumption with financial benefits

Energy Audit is the key to a systematic approach for decision-making in the area of
energy management. It attempts to balance the total energy inputs with its use, and serves to
identify all the energy streams in a facility. It quantifies energy usage according to its discrete
functions. Industrial energy audit is an effective tool in defining and pursuing comprehensive
energy management programme.

As per the Energy Conservation Act, 2001, Energy Audit is defined as "the verification,
monitoring and analysis of use of energy including submission of technical report containing
recommendations for improving energy efficiency with cost benefit analysis and an action plan
to reduce energy consumption".

In India as per EC Act 2001, energy audit is carried-out by accredited energy auditor by
Bureau Of Energy Efficiency (Government of India). The energy auditor with his team visit
industry frequently and perform, various activities like collecting, measuring, testing, evaluating,
analyzing and reporting the energy profile.

Need for Energy Audit

In the world of competition, energy plays a crucial role in the country’s sustainable
development. Energy is significant to create and sustain momentum of development. World
without energy is impossible to think.

In any industry, the three top operating expenses are often found to be energy (both
electrical and thermal), labor and materials. If one were to relate to the manageability of the cost
or potential cost savings in each of the above components, energy would invariably emerge as a
top ranker, and thus energy management function constitutes a strategic area for cost reduction.
Energy Audit will help to understand more about the ways energy and fuel are used in any
industry, and help in identifying the areas where waste can occur and where scope for
improvement exists.

The Energy Audit would give a positive orientation to the energy cost reduction,
preventive maintenance and quality control programmes which are vital for production and
utility activities.
Such an audit programme will help to keep focus on variations which occur in the energy costs,
availability and reliability of supply of energy, decide on appropriate energy mix, identify energy
conservation technologies, retrofit for energy conservation equipment etc.

In short, energy management is necessary for energy conservation and overall socio-
economical development and energy audit is also necessary for energy management for
understanding energy trends and decision-making.

Advantages of Energy Audit

The advantages of energy audit are as following:

1. Understanding energy cost/value and give positive orientation to the energy cost
reduction and preventive maintenance.
2. Provide opportunities to save energy.
3. Provide scope for re-use, re-cycle and reduce the wastage of material and energy.
4. Highlights the financial benefits with payback period, IRR etc for energy saving
implementation.
5. Highlights the quality and production improvement ways through energy conservation.
6. Useful for decision-making for energy management programme.
7. Help to keep in competition.
8. Help to search energy and fuel substitution, energy mix and other cheaper and reliable
energy alternatives.
9. Identify energy efficient technologies and retrofits for energy conservation equipments.
 10. Helpful to evaluate the energy standards and performances and benchmarks in with
world’s best.
11. Reduce the pollution and strongly helpful for mitigation of GHGs as per Kyoto Protocol.

Types of Energy Audit

The energy audit can be classified as:

 Internal energy audit is performed regularly by internal energy auditor or energy
management team through energy manager.
 External energy audit is performed by external body of accredited energy auditor with co-
operation and co-ordination of organizational energy manager and other department.

The type of energy audit to be conducted depends on the following factors:

1. Interest of management and policy
2. Function and structure of industry
3. Capacity and size of industry
4. Desired benefits to be needed
5. Depth of which final audit is required
6. Other linked conditions of economy, environment tec.

Thus Energy Audit can be classified into the following two types.
i) Preliminary Audit
ii) Detailed Audit

Preliminary Energy Audit

“It is a simple & quick survey and analysis of energy consumption in the organization with
identifying immediate and low cost recommendations for energy savings.”

Preliminary audit is conducted relatively in short duration and includes only major energy inputs
and waste of important energy conversion system.
The preliminary energy audit is:

- Simple and quick survey of energy consumption in the industry.

- Estimate the scope of energy savings.
 - Identify immediate and no/low investment energy saving recommendation.
- Evaluate only major energy inputs of major energy using system.
- Suggest easiest energy/fuel substitution and/or other energy alternatives.
- Comparatively less accurate estimate of energy saving as compared to
comprehensive energy audit.

Detailed Energy Audit

“It is a detailed and in-depth survey and analysis of energy consumption with covering all major
energy/material inputs to major system inputs to major system and its subsystems and detailed
immediate/medium/long term recommendations for energy saving and its implementation plan
with financial analysis.”
It requires comparatively more time for study, measurement and testing of each and every
equipment/system and its subsystem which consumes energy.
A Detailed energy audit is:
- In depth and detailed survey and analysis of energy consumption (present and past)
- Estimate the energy conservation opportunities.
- Valuate material and energy balance of equipment/ system/ subsystem/ organization.
- Identify immediate/short/long term actions for energy conservation.
- Suggest energy substitution and other energy mix with detailed cost/benefit analysis.
- Consider the management policy, employee’s behavior and skills, need of training.
- Identify the economical ways for recycle, re-use and reduce wastage of energy.
- Examine environmental impacts and ways to reduce the pollutants.
- Develop benchmarking for energy performances.

Energy Audit Procedure

The procedure to carry out detailed energy audit is depending on industry, management, energy
auditor, environment, policy, product and process. Industry-to-Industry the methodology of
energy audit may be changed. A general methodology for conduct of energy audit of any
organization is described below.

Table 2.1 General Methodology For Conduct Of Energy Audit

Steps Activities
Walk Through Audit I. Arrange formal meetings with
management and divisional heads and
building co-operation & awareness and
also collect energy consumption and
process data.
II. Organise energy team & assign duties
with time limits.
III. Macro data collection, energy bills,
actual consumption, process charts/flow
diagrams.
Facility Visit/tour I. Visit the organization and observe the
various process/operations.
II. Identify major energy consuming areas
and set priorities.
III. Decide instruments to be used.
Data Collection & Review I. Now collect all macro and micro data of
present & past periods.
II. Collect the data regarding design,
operating & maintenance schedule,
start/shutdown.
Prepare process flow schematics I. Cross-checking of process flow diagram
and energy utility diagram with
departmental heads/engineer.
Measurement & Testing I. Measurement of the mechanical &
electrical parameters
II. Conduct motor survey, harmonic
analysis, insulation survey, lightning
survey, compressed air survey, lub oil
survey, etc...
III. Measure the parameters accurately with
precise instrument & compare with
design and operating data.
IV. Conduct performance assessment
test/trials for boiler/ furnace/ pump
/fan/blower/ compressor DG set etc…
V. Detailed Harmonics & Power quality
 monitoring & analysis.
Material & Energy Balance I. Identify input/output/waste stream for
equipment or process.
II. Estimate material & energy loss/waste.
III. Analysis of recycling, re-using &
reducing of energy/material waste.

Identify/Evaluate feasible ECO’s I. Identify technical & economically

feasible ECO’s
II. Review and compare with previous ideas
suggested.
III. Also consider environmental impacts
IV. Use brainstorming & value analysis
techniques.
V. Find the venders for new/efficient
technology and check its feasibility
Financial analysis I. Check cost/benefit assessment and
technical feasibility.
II. Compare by payback, IRR, ROI, NPV
values and other related conditions.
III. Give priorities by immediate, short, long
ECM’s.
IV. Consult with ESCOs and other finance
firm.
Prepare a Audit Report & Presentation I. Writing/Typing of EA report.
II. Compilation & presentation to top
management.
III. Submit copy to top management/ EM/
BEE, State nodal agency.
Implementation and Follow-up I. Permission of management for
implementation.
II. Planning for implementation.
III. Monitoring the performance.
IV. Evaluate & compare the energy
performance.
V. Follow-up &review periodically.