‘’Energy Auditing Analysis and

Conservation
 Chapter 1: Introduction
What is Energy Conservation?
• Energy Conservation and Energy Efficiency are separate,
but related concepts.
• Energy conservation is achieved when growth of energy
consumption is reduced, measured in physical terms.
Energy Conservation can, therefore, be the result of
several processes or developments, such as productivity
increase or technological progress.
• On the other hand Energy efficiency is achieved when
energy intensity in a specific product, process or area of
production or consumption is reduced without affecting
output, consumption or comfort levels.
• Promotion of energy efficiency will contribute to energy
conservation and is therefore an integral part of energy
conservation promotional policies.
energy efficiency
means using less
energy to perform
the same function.
The benefits of Energy conservation for various
players
• Coal and other fossil fuels, which have taken three million
years to form, are likely to deplete soon. In the last two
hundred years, we have consumed 60% of all resources. For
sustainable development, we need to adopt energy
efficiency measures.
• Today, 85% of primary energy comes from non-renewable,
and fossil sources (coal, oil, etc.). These reserves are
continually diminishing with increasing consumption and will
not exist for future generations (see Figure below).
Environmental Problems due to Energy
The usage of energy resources in industry leads to
environmental damages by polluting the atmosphere.
Typical inputs, outputs, and emissions for a typical industrial
process are shown in Figure below.
Acid Rain
Acid rain is caused by release of SOX and NOX from
combustion of fossil fuels, which then mix with water vapour
in atmosphere to form sulphuric and nitric acids respectively

The effects of acid rain are :

• Acidification of lakes,
streams, and soils
• Killing of wildlife (trees,
crops, aquatic plants, and
animals)
• Decay of building materials
and paints, statues, and
sculptures
• Health problems
(respiratory, burning- skin and
eyes)
 Principles of Energy Management

Definition & Objectives of Energy Management

The term energy management means:

The strategy of adjusting and optimizing energy, using

systems and procedures so as to reduce energy
requirements per unit of output while holding constant or
reducing total costs of producing the output from these
systems.

Energy management is an essential component of a

companies energy policy, and it should be an integral part
of any company or organization operation and structure as
it is human resources or financial management.
• The primary objective of energy management is to
maximize profits or minimize energy costs / waste
without affecting production & quality .
• Some desirable sub-objectives of energy
management programs include:
– Improving energy efficiency and reducing energy
use, thereby reducing costs
– Developing and maintaining effective monitoring,
reporting, and management strategies for wise
energy usage
– Finding new and better ways to increase returns
from energy investments through research and
development
The Need for Energy Management
Economic point :
• any new activity can be justified only if it is cost effective;
that is, the net result must show a profit improvement or cost
reduction greater than the cost of the activity. Energy
management has proven time and time again that it is cost
effective.
• An energy cost savings of 5-15 percent is usually obtained
quickly with little to no required capital expenditure when an
aggressive energy management program is launched.

• An eventual savings of 30 percent is common, and savings of

50, 60, and even 70 percent have been obtained.

• In fact, for most manufacturing and other commercial

organizations energy management is one of the most promising
profit improvement-cost reduction programs available today.
National Good
• To Improve National Security. Oil imports directly
affect the energy security and balance of Payments of
country.
• Limiting global climate change: Carbon dioxide, the main
contributor to potential global climate change, is
produced by the combustion of fossil fuel, primarily to
provide transportation and energy services.
• Improving local industries competitiveness. Becoming—
or continuing to be—economically competitive in the
global marketplace, which requires reducing the cost of
production or services, reducing industrial energy
intensiveness, and meeting customer service needs for
quality and delivery times.
• Need to minimize the effects of a potential limited
energy supply interruption
Designing an energy management program
In designing an energy management program, several
ingredients are vital:
Top Management commitment. Commitment from the
top must be strong and highly visible.
• Two situations are likely to occur with equal
probability when designing an energy management
program.
1. Management has decided that energy
management is necessary and wants a program
implemented( response mode, energy manager)
2. You (an employee) have decided to convince
management of the need for the program
(aggressive mode)
• The best way to convince management is with facts
and statistics. Sometimes the most startling way to
show the facts is through graphs.
Follow this data with quotes
on programs from other
companies showing these
goals are realistic.

Other company experiences

are widely published in the
literature; results can also
be obtained through direct
contacts with the energy
manager in each company.

Figure 1 Energy costs—past and future

Energy Management Coordinator/Energy Manager
• To develop and maintain vitality for the energy
management program, a company must designate a
single person who has responsibility for
coordinating the program.
• If no one person has energy management as a
specific part of his or her job assignment,
management is likely to find that the energy
management efforts are given a lower priority than
other job responsibilities. Consequently, little or
nothing may get done.
• Developing a working organizational structure may
be the most important thing an energy manager can
do.
Backup Talent
• Unfortunately, not all the talent necessary
for a successful program resides in one
person or discipline. For example, several
engineering disciplines may be necessary to
accomplish a full-scale study of the plant
steam production, distribution, usage, and
condensate return system.
• For this reason, most successful energy
management programs have an energy
management committee. Two subcommittees
that are often desirable are the technical
and steering subcommittees.
Cost Allocation
• One of the most difficult problems for the energy manager is
to try to reduce energy costs for a facility when the energy
costs are accounted for as part of the general overhead.

• In that case, the individual managers and supervisors do not

consider themselves responsible for controlling the energy
costs. This is because they do not see any direct benefit from
reducing costs that are part of the total company overhead.

• The best solution to this problem is for top management to

allocate energy costs down to “cost centers” in the company
or facility. Once energy costs are charged to production
centers in the same way that materials and labor are charged,
then the managers have a direct incentive to control those
energy costs because this will improve the overall cost-
effectiveness of the production center.
Reporting and Monitoring
• The objective of an energy reporting system is to
measure energy consumption and compare it either
to company goals or to some standard of energy
consumption.
• This should be done for each operation or production
cost center in the plant. but most facilities simply
do not have the required metering devices.
• Systems that should be metered include: steam,
compressed air, electricity , and chilled and hot
water.
• The reporting scheme needs to be reviewed
periodically to ensure that all needed data is
available, and that the system is efficient and
effective.
Training
• Training cannot be accomplished overnight, nor is it
ever “completed.”
• Changes may occur in
– energy management staff and employees at all
levels,
– new technology and production methods.
All these precipitate training or retraining. The
energy management coordinator must assume
responsibility for this training.
Energy Management Training
Starting an energy management program
• Several items contribute to the successful start of
an energy management program. They include:
1.Visibility of the program start-up
2.Demonstration of management commitment to
the program
3. Selection of a good initial energy management
project
Visibility of Start-up
• To be successful, an energy management
program must have the backing of the people
involved. Obtaining this support is often not an
easy task, so careful planning is necessary.
The people must:
1. Understand why the program exists and what its
goals are;
2. See how the program will affect their jobs and
income;
3. Know that the program has full management
support; and
4. Know what is expected of them.
• Communicating this information to the employees
is a joint task of management and the energy
management coordinator.
• The company must take advantage of all existing
communications channels while also taking into
consideration the preceding four points.
Some methods that have proven useful in most
companies include:
• Memos. Memo announcing the program can be sent
to all employees. A comprehensive memo giving fairly
complete details of the program can be sent to all
management personnel from first-line supervision up.
• A more concise one can be sent to all other
employees that briefly states why the program is
being formed and what is expected of them. These
memos should be signed by local top management.
• News releases. Considerable publicity often
accompanies the program start-up. Radio, TV,
posters, newspapers, and billboards can all be used.
News releases should contain information of interest
to the general public as well as employees
Meetings. plant, and department meetings are
sometimes used, in conjunction with memos, to
announce the program and provide details. Top
management can demonstrate commitment by
attending these meetings.
Films, video tapes. Whether produced in-house or
purchased, films and video tapes can add another
dimension to the presentation.
Demonstration of Management Commitment
• Management participation in the program start-up
demonstrates this commitment, but it should also
be emphasized in other ways. For example:
• Reward participating individuals. Recognition is
highly motivating for most employees.
• When the employee has made a suggestion that led
to large energy savings, his/her activities should be
recognized through monetary rewards, publicity, or
both. Public recognition can be given in the company
newsletter, on bulletin boards, or in plant-
department meetings.
• Reinforce commitment: Management must realize
that they are continually watched by employees.
• Existing newsletters, or a separate one for the
energy management program, can include a
short column or letter from management on
the current results of the program and the
plans for the future. This same newsletter can
report on outstanding suggestions from
employees.
• Fund cost-effective proposals: If an energy
management project is cost effective, it
should be funded. If money is not available for
capital expenditures, then management should
make this clear at the outset of the program
and ask the team to develop a program which
does not require capital expenditures.
Early Project Selection
• The energy management program is on double-
crossing footing in the beginning.
• Most employees are afraid their heat is going to be
set back, their air conditioning turned off, and
their lighting reduced. If any of these actions do
occur, it’s little wonder employee support wanes.
• Try to have less controversial actions as the early
projects eq.
– Re-lamping project with energy efficient and
bright ones
– Repairing steam leaks
– Insulating steam, hot water, and other heated
fluid lines and tanks.
– Install high efficiency motors