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Assessment Criteria Energy Audit and Energy Assets Management

Module Code: MMH2238558

Industrial Application of Energy Audit

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Executive Summary
Energy audits, which include construction and location surveys, are a significant tool for energy
managers. Those who will not, beyond a limited degree, create energy efficiency; however they
supply the essential data on which to build a successful program. They also help to identify
targets and give a structure to assess the efficacy of an initiative to manage energy in the lack of
monitoring. Similar to numerous other systems engineering, an energy audit benefited from
skilled expertise and judgment. If completed appropriately, audits could provide valuable
instructions to the energy management as well as insight regarding main components of energy
use. This task consist of four sections discussions and analysis such as some challenges related to
energy audit process, process of energy audit, energy accounting data analysis research, and the
life cycle costs process.
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List of Abbreviations

 LCC: Life Cycle Cost

 LCA: Life Cycle Assessment
 E-LCA: Environmental Life Cycle assessment
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Table of Contents
Executive Summary.........................................................................................................................2

List of Abbreviations.......................................................................................................................3

Introduction......................................................................................................................................5

Task 1...............................................................................................................................................6

Task 2...............................................................................................................................................7

Task 3...............................................................................................................................................8

Task 4.............................................................................................................................................11

References......................................................................................................................................12
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Introduction
Saving energy not only contributes to a more corporate sustainability operation, but it also
greatly reduces energy expenditures. But where can you save money? How often companies are
legally required to enhance your energy and environmental performance? An energy audit can
help you understand where existing energy bills are coming from it and how to take steps to
enhance energy and environmental performance. An energy audit includes a schematic overview
among all current energy movements, encompassing transportation and operations, as well as a
description of the key factors impacting energy usage. Furthermore, the audit gives a quantifiable
assessment of the amount that the firm may save on electricity during the following four years,
as well as a description of various cost-effective strategies to do this.  Several energy providers
and software applications offer free energy audits to households. Often, these lower power audits
are really not comprehensive and merely provide approximations regarding the building's overall
use. Furthermore, free energy audits are unlikely to supply customers with tailored energy-saving
options.
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Task 1

[1]- Discuss the challenges of energy scene and relate it to audit process and industrial audit
opportunities. Clearly define the types of energy audits and show how it applies to the
industrial facility under study

Answer:

An energy audit entails examining, surveying, and analyzing the energy flows in the structure,
operation, or system in order to decrease the amount of energy that is used by the system without
degrading the products. Energy wastage is the consequence of ineffective energy use and a
shortage of consumer education (Hellgren 2015). Therefore, it is essential to educate the entire
people. Power systems can potentially be improved in every way to use less energy. On the
supply side, greener energy sources must be used in addition to more effective production and
delivery. Nowadays, there really are innovations that can be applied to increase productivity and
reduce expenses across the board. Programs have also been put in place to find a way to balance
the demand for products and services. If individuals are unaware about energy efficiency
programs, it will be difficult to keep them running.

Recognizing advanced technologies by examining significant process energy-consuming utility

companies, including boilers, temperature control plants, air conditioning systems, construction
method, and shipping performance. This is done in accordance with our ethical business
procedures to aid the company decide where should put its resources. The first type of audit is
known as a walk-through audit. By conducting a walk-through as well as light audit, it's indeed
likely to uncover issues with the facility's management, upkeep, or failing components (Trimble
& Hirst 1983). Through this whole audit, several immediate wins and anticipated financial
calculations are attainable. The second type of audit would be a systematic audit, or complete
audit. This entails a careful analysis of the systems that use energy in the structure or factory.

To determine real power consumption and inefficiencies, observation, meters, or testing may
well be required. It also contains a benefit and cost analysis of the targeted possibilities. By
making more extensive process improvements, thorough audits can be strengthened. For
example, annual energy savings and utilization estimates can be made using computer modeling.
Further financial analysis-based decisions (Shen, Price & Lu 2012).The risks associated should
also be factored into the economic factors. One type of audit that would be necessary to obtain
funding for specified projects is a "investment - grade credit audit." Asset inventories, planned
maintenance, and technical regulations are all essential in this situation (Shen, Price & Lu 2012).
Energy audits may be employed to discover and prioritize energy-saving opportunities as a vital
component of a plan for energy management.

An energy analysis typically consists of four distinct phases: the kick-off meeting, the site
inspection, summary data analysis, and the restoration of findings (especially if the audit is
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carried out by a third-party organization). A walk-through or audit is generally preceded by a

"kick-off meeting." This gathering is a fantastic opportunity to bring everyone involved in the
project under one roof. Such group typically consists of the department manager, the site
manager, the repair supervisors, as well as any external or internal auditors. The manager of such
production area, the director of the accounting system, and other jobs could be included in the
audit when it's comprehensive sufficient. An on-site visit is part of the energy audit. Visits to the
factory, substation, storage, and headquarters are made during this stage to better comprehend
what happens and then how electricity is being used (Hasanbeigi & Price 2010). The
maintenance engineer in authority of the audited area should accompany the auditor. The auditor
may also interrogate the maintenance supervisor, machinery controllers, or other building staff in
a bid to better comprehend the problems with the structure and procedure performance. Such
concerns can typically be answered in brief interviews; only in talks could take more time. It is
crucial to make sure that all pertinent stakeholders are aware of and accessible for the audit
throughout order to conduct an effective audit.

Task 2
[2]- Give an explanation of the types, phases and process of energy audit components relating
to the industrial facility investigated and define the energy conservation measures (ECM)
considered and why?. (30%)

Answer:

Kick-off Meeting for Energy Audit Usually, audit is preceded by a "kick-off meeting" (Arthur -
Member, Frimpong & Okyere 2018). This gathering is a fantastic opportunity to bring everyone
associated with the endeavor within one cover. Such group typically consists of the energy
manager, the site manager, the repair manager, and also any external or internal auditors. The
audit could also contain accountabilities like those of a manufacturing manager or accounting
senior manager if the organization is designed appropriately and the audit is sufficiently
substantial. In this meeting, discuss the audit's purpose, the general audit plan, and also the task
plans in more depth.

An on-site visit is part of the energy audit. Visits to the factory, transformer, warehouse, and
offices are made during this phase to better comprehend what happens and how electricity has
been used. The maintenance personnel in responsible of the audited area should accompany the
auditor. The auditor may also interrogate the servicing supervisor, machinery operators, and
some other building staff in hopes of learning more about the problems with the structure and
system performance. Such concerns can typically be answered in brief interviews, but in-depth
talks may require additional time. Making ensuring the appropriate people are informed of the
audits and accessible on the day before the inspection is essential when planning for it. If
required during an audit, a transitory meter might well be set up for a few hours or a few days
while collect information. During the audits, the auditor will also take measurements. Following
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the on-site assessment, a wrap-up conference with the same attendees as the kick-off meeting
must be convened to discuss the deliverables and set a date for restitution as well as to provide
the preliminary performance characteristics (Arthur -Member, Frimpong & Okyere 2018).

The following phase in an energy audit is analysis of data. This procedure includes formulating
the deliverables and conducting a cost benefit analysis. Presentations and reporting will be
included in the deliverables. Doing engineering calculations, performing simulations, and
employing tools as needed are all included in this process. There needs to be an energy audit.

Task 3
[3]- Conduct an energy accounting data analysis, statistical and reliability analysis of your
industrial facility selected and discuss the risk management process. Use graphs/charts to
show the load factor, consumption trends and failure frequency.

Answer:

Throughout the energy sector, risk management is necessary. Numerous nations have
emphasized the diversity of competitive rules in the business and energy sectors as a key policy
objective. New product creation teams are under increasing strain as a result of the rapid
advancement of technology, rising risk tolerance and risk in international markets, as well as
growing adjustments to consumer expectations (21st Century Technologies n.d.). The risks
associated in this strategy should be recognized and handled in order to successfully identify
possibilities and dangers in the energy sector. In order to provide a fair indication of industry
sectors throughout our energy area, the research gathered information from 34 industries
throughout the study area. Because of this, the findings from the research can indeed be normally
distributed using statistical general conclusion; moreover, the diversity of the manufacturing and
services sectors surveyed furthermore makes it challenging to make assumptions for the result to
particular industries. These restrictions do not, however, undermine the goal of such research
study since the area of study is a prominent location with electricity consumption and
conservation hotspots.

The industrial sector requires energy the most, following by the residential as well as commercial
(non-residential) industries in terms of usage (refer fig 1 below). Electricity is among the key
contemporary energy sources that contribute to economic growth) (Schwartz, Wei & Morrow
2017). The end-use of energy throughout the industrial, household, and retail industries in 2010
was 46%, 40%, as well as 14%, correspondingly. Domestic being used in urban areas makes up
88% of household electricity usages, whereas the domestic being used in rural areas makes up
the balance, or 12%. Urban residents typically have been using electricity to power lights,
ironing, cooling systems, conditioning systems, television, radio, and other appliances, but
household cooking constitutes an extremely minor use of electricity.
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Figure 1: electricity Consumption (Energy Commission))

Figure 2: Viability of energy consumption

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Load factor energy consumption trends

failure frequency
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1 2 3 4 5 6 7

Figure 3: load factor, energy consumption trends, and failure frequency

The oil refinery starts the process of risk management throughout this research by recognizing
possible hazards which might have an impact on the Refinery's activities, such as accidents,
leaks, explosions, and fires (Lisa, Arellano & Van Wijk 2013). The Refinery then creates a
strategy to lessen these risks. This could entail setting up emergency response protocols,
performing safety drills, and implementing protective equipment.

In conclusion, organizational risk assessment enables the business to move forward and realize
its intended purpose without even being constrained by unexpected events, adjustments, or
uncertainty. The best strategy to boost the efficiency of risk management in the company is to
integrate it into the group of support activities that already exist and designate a process owner
who will be in charge of enabling risk management inside the company and assisting
management teams in this area. Other approaches to process to obtain with such a favorable
outcome include creating risk mitigation groups within the organization including manager
engagement and informing top management of the dangers that lie ahead. The day-to-day and
continuing actions of senior executives typically reflect a sort of decision-making process that
involves determining how to handle risk exposures.

The key to successful risk assessment is thus going to be senior executives' profound grasp of the
organization's future hazards and their generalization of this awareness throughout all managerial
activities. Senior management must be engaged with the procedure of recognizing, analyzing,
and measuring risks in order to accomplish this feature. It ought to be mentioned that the
executive director's risk assessment culture won't be internalized by the experts' simple risk
evaluation and presentation of their findings.
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Task 4

[4]- From the perspective of life cycle costs, the cheapest investment is usually not the most
economical choice. If life cycle costing is considered in decision making, justify the choice in
making decisions on the investment.

Answer:

The same proposed model can be used to evaluate a production price, cycle of life, sustainable
consumption of resources, including environmental emissions. The project's goals and
parameters, along with the data inventory, particularly data allocation challenges, should be
made explicit. As all estimates are expressed using the identical unit of currency, LCC does not
require effect evaluation via characterization models. Yet, it is possible to develop concepts of
risk cost that are in line with mid- and end-impact implications. Last but not least, it is crucial to
take into account the degree of interpretations throughout the context of LCC. Mixing LCA and
LCC raises a number of challenges, including the requirement to align the aims and scope; LCC
is typically conducted for a single actor when the views of the general public differ. As a result,
it is important to explain the environment where the integration including both assessments
becomes essential. Governmental organizations make many of these decisions and are required
to take into account both the costs that products place on society as a whole as well as their
effects on the environment. Giving consumers right information is another critical situation. It's
important to be mindful of issues like double tallying and unbalanced scoring.

In the case of E-LCA, for instance, employing cost allocation components requires accepting
environmental implications, whereas using external costs throughout the case of LCC. It is
challenging to adjust to the necessities and the cycle of life simultaneously in time. Before it is
seen, businesses make investment choices utilizing loan funding. Considering its investment
choice (K) at an uncertain stage, a corporation may decide to forfeit on its loan if F(K)(1 +) is
less than K(1 + r). It makes sense to presume that domestic businesses have more expertise than
foreign lenders. They may evaluate a company's productivity before reaching a credit approval.
As a result, domestic creditors would only contemplate financing companies whose productivity
is more than 0. International lenders, on the contrary hand, are apathetic at this stage and will
give loans to any business; reflects the proportion of solid businesses financed by foreign
lenders.
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References

Arthur -Member, J, Frimpong, E & Okyere, P n.d., Energy Auditing: An Overview and Key
Issues, viewed 28 March 2023,
<https://www.iaeng.org/publication/WCECS2018/WCECS2018_pp298-302.pdf>.

Hellgren, M n.d., Energy Use as a Consequence of Everyday Life, viewed 28 March 2023,
<https://www.diva-portal.org/smash/get/diva2:864260/fulltext01.pdf>.

Hasanbeigi, A & Price, L 2010, Industrial Energy Audit Guidebook: Guidelines for Conducting
an Energy Audit in Industrial Facilities, www.osti.gov.

Lisa, A, Arellano, V & Van Wijk, L 2013, ‘Maureen Heraty WOOD’, viewed 28 March 2023,
<https://publications.jrc.ec.europa.eu/repository/bitstream/JRC84661/lbna26331enn.pdf>.

Schwartz, L, Wei, M & Morrow, W 2017, Lawrence Berkeley National Laboratory Recent Work
Title Electricity End Uses, Energy Efficiency, and Distributed Energy Resources Baseline:
Permalink Publication Date.

21st Century Technologies Promises and Perils of a Dynamic Future n.d.

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Appendices