Energy Management

& Audit
 Definition of Energy Audit
“The judicious and effective use of energy to
maximize profits (minimize costs) and enhance
competitive positions”
“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”
Types of Energy Audit
• Walk Through or Preliminary energy
audit
• Detailed energy audit

• Type of energy audit chosen depends

on
– Function and type of industry
– Depth to which final audit is needed
– Potential and magnitude of cost
reduction desired
Walk-through or preliminary audit
 
Walk-through or preliminary audit comprises one day
or half-day visit to a plant and the output is a simple
report based on observation and historical data
provided during the visit. The findings will be a
general comment based on rule-of-thumbs, energy
best practices or the manufacturer's data.
Preliminary Energy Survey
Quick overview of energy use patterns
• Provides guidance for energy accounting
system
• Provides personnel with perspectives of
processes and equipment
• Identify energy – intensive processes and
equipment
• Identify energy inefficiency ,if any
• Set the stage for detailed energy survey
 Steps in conducting Preliminary
Energy Audit

1. Plan how to obtain useful data

– Plan how to win the involvement/ commitment of
others
2. Collect data
 Collect existing data e.g., a energy
bills(volume/cost)
 Collect Production output/records plant layouts
using checklists
3. Analyse data
 Find unit cost of energy (Rs./ kWh for all types)
 Find fixed and variable energy element
 Derive ‘energy Index’: energy cost/unit output,
energy cost/floor area
 Steps in Conducting Preliminary
Energy Audit

4. Formulate plan
Formulate Immediate energy-saving
actions: Where? How ? How much?
– Areas to investigate further
– Resources required for more
detailed study
5. Action and Monitoring
6. Next steps (e.g Need for detailed
Audit)
Detail audit
 
Detail audit is carried out for the energy
savings proposal recommended in walk-
through or preliminary audit. It will provide
technical solution options and economic
analysis for the factory management to
decide project implementation or priority.
A feasibility study will be required to
determine the viability of each option.
Detailed Energy Survey

Detailed evaluation of energy use pattern

• By processes and equipment

• Measurement of energy use parameters
• Review of equipment operating
characteristics
• Evaluation of efficiencies
• Identify DSM options and measures
• Recommendation for implementation
 Detailed Energy Audit
• Evaluates all energy using system,
equipment and include detailed energy
savings and costs

• Carried out in 3 phases

– Pre-audit Phase
– Audit Phase
– Post-Audit
 Ten Steps Methodology for Detailed Audit
Step
PLAN OF ACTION PURPOSE / RESULTS
No
Phase I –Pre Audit Phase

Step 1  Plan and organise  Resource planning, Establish/organize a

 Walk through Audit Energy audit team
 Informal Interview with  Organize Instruments & time frame
Energy Manager, Production  Macro Data collection (suitable to type of
/ Plant Manager industry.)
 Familiarization of process/plant activities
 First hand observation & Assessment of
current level operation and practices

Step 2  Conduct of brief meeting /  Building up cooperation

awareness programme with  Issue questionnaire for each department
all divisional heads and  Orientation, awareness creation
persons concerned (2-3 hrs.)
 Phase II –Audit Phase
Step 3  Primary data gathering,  Historic data analysis, Baseline data
Process Flow Diagram, & collection
Energy Utility Diagram  Prepare process flow charts
 All service utilities system diagram
(Example: Single line power distribution
diagram, water, compressed air & steam
distribution.
 Design, operating data and schedule of
operation
 Annual Energy Bill and energy consumption
pattern (Refer manual, log sheet, name plate,
interview)
Step 4  Conduct survey and  Measurements :
monitoring Motor survey, Insulation, and Lighting
survey with portable instruments for
collection of more and accurate data.
Confirm and compare operating data with
design data.
Step 5  Conduct of detailed trials  Trials/Experiments:
/experiments for selected - 24 hours power monitoring (MD, PF,
energy guzzlers kWh etc.).
- Load variations trends in pumps, fan
compressors etc.
- Boiler/Efficiency trials for (4 – 8
hours)
- Furnace Efficiency trials
Equipments Performance
experiments etc

Step6  Analysis of energy use  Energy and Material balance & energy
loss/waste analysis

Step 7  Identification and  Identification & Consolidation ENCON

development of Energy measures
Conservation (ENCON) Conceive, develop, and refine ideas
opportunities Review the previous ideas suggested by unit
personal
Review the previous ideas suggested by
energy audit if any
Use brainstorming and value analysis
techniques
Contact vendors for new/efficient
technology
Step 8
 Cost benefit analysis  Assess technical feasibility, economic
viability and prioritization of ENCON
options for implementation
 Select the most promising projects
 Prioritise by low, medium, long term
measures

Step9  Reporting & Presentation to Documentation, Report Presentation to the top

the Top Management Management.
Step10 Phase III –Post Audit phase

 Implementation and Follow- Assist and Implement ENCON recommendation

up measures and Monitor the performance
Action plan, Schedule for
implementation
Follow-up and periodic review
Inputs and Outputs of Energy audit
ELECTRICAL ENERGY AUDIT

                                                  
         
Areas covered under Electrical audit
are
1. Electrical System :
• Electrical Distribution system
(substation & feeders study)
• PF Improvement study
• Capacitor performance
• Transformer optimization
• Cable sizing & loss reduction
• Motor loading survey
• Lighting system
• Electrical heating & melting
furnaces
• Electric ovens
2. Mechanical System :
                                      
• Fans & Blowers
• Exhaust & ventilation
System
• Pumps and pumping
System
• Compressed air
System
• Air Conditioning &
Refrigeration System
• Cooling Tower System
THERMAL ENERGY AUDIT

Areas covered under Electrical audit are

• Steam Generation Boilers
• Steam Audit and Conversation
• Steam Trap Survey
• Condensate Recovery System
• Insulation Survey
• Energy and Material Balance for Unit
operation
• Heat Exchanger
• Waste Heat Recovery System
WATER AUDIT & CONSERVATION
Industry has recognized 'Water Audit' as a important
tool for water resource management    
Water Audit study is a qualitative and quantitative
analysis of water consumption to identify means of
reuse and recycling of water. This study includes
segregation of effluent streams and schemes for
effectively treating them to enable byproduct recovery.
Water Audits encourage social responsibility by
identifying wasteful use, enables estimation of the
saving potential they not only promote water
conservation but also deliver cost savings, but also
companies to safeguard public health and property,
improve external relations and reduce legal liability.
Benefits of energy audit
 
There is a lot of potential for energy savings from
energy audits.. Technical solutions proposed in
the energy audits show massive potential for
energy savings in every sub-sector with an
average of almost ten percent of the energy
usage. However, this can only materialize through
replication at other factories within the respective
sub-sector.
Benefits of an industrial energy audit include:
 
•Energy savings
•Avoiding power factor penalties and environmental
compliance costs
•Quality improvements
•Productivity improvements
•Reduced maintenance
•Fewer breakdowns
•Better safety and protection
•A process for repeatable improvements
 Process VS. Equipment
Equipment efficiency improvement : Max. 5%
Process efficiency improvement : 15% to 30%

Conclusion
Focus on Processes
 Energy intensive processes and equipment
Examples of processes
• Electrical furnace
• Rolling mills
• Gas furnace
• Steam generation
• Feed water system
• Condensate return system
• Steam distribution system
Examples of equipment
• Electrical motor
• Pump
• Fan
• Heater (gas,..,electric)
• Dryer (steam/electric)
• Motor / generator
• Compressor
• Light bulb
 Conducting Energy Audits

Step 1 : Data CollectionStep 2 :Pre. Audit Report

Step 4 :Detailed Audit Report

General Energy • Detailed Inventory

• Lay out – Process Accounting
FD- • Normalization •Specific Energy Consumption
• Operating
•Time Plotting of •Conceptual Design for ECO
Systems
Conditions
data •Economic Evaluation and
• Boiler & Steam
Analysis
System Identifying
•HVAC ECO
•Elec. Supply
System Step 3 :Facility Inspection
•Water systems
•Compressed Air
System
• Detailed
Measurements
•Lighting
•Motors and Drives •Categorizing
Energy
•Processing Lines Consumption
Data•Building Envelope
•Electricity Bills
•Systems Detailed
Specs. And operating
•Fuel Bills
conditions
•Water Bills
Goals of the energy audit are to :
• Clearly identify types and costs of energy use
• Understand how that energy is being used and
possibly wasted
• Identify and analyze more cost-effective ways of
using energy
- Improved operational techniques
- New equipment
• Perform an economic analysis on those
alternatives and determine which are cost-
effective for your business or industry

AEE/ Certified Energy Manager CEM ® B-2

 Analysis of Bills
The audit must begin with a detailed analysis of the
energy bills for the previous twelve months. This is
important because :
• The bills show the proportionate use of each different
energy source when compared to the total energy bill.
• An examination of where energy is used can point out
previously unknown energy wastes, and
• The total amount spent on energy puts an obvious upper
limit on the amount that can be saved.

AEE/ Certified Energy Manager CEM ® B-3

AEE/ Certified Energy Manager CEM ® B-4
AEE/ Certified Energy Manager CEM ® B-5
 Av. Load Duration Curve

1200

1000

800
kW

600

400

200

0
744 1464 2208 2928 3672 4416 5136 5880 6552 7296 8016
Hrs / Year
A complete analysis of the energy bills for a facility
requires a detailed knowledge of the rate structures in
effect for the facility.
To accurately determine the costs of operating individual
pieces of equipment, break down energy bills into their
components (e.g. demand charge and energy charges for the electric bill).
This breakdown also allows more accurate savings
calculations for Energy Management Opportunities
(EMOs) such as high-efficiency equipment, rescheduling
of some on-peak electrical uses, etc.

AEE/ Certified Energy Manager CEM ® B-6

 Steps in the On-site Energy Audit

1. Identify layout and operating schedule for facility.

Make a plan or sketch of the building(s) which
shows building sizes, window areas, and wall
and roof composition and insulation

2. Compile an equipment inventory.

List all energy consuming equipment, with hours

of
use each year and energy ratings or efficiencies

AEE/ Certified Energy Manager CEM ® B-7

3. Determine the pattern of building use to show
annual needs for heating, cooling and lighting

4. Conduct a room-by-room lighting inventory

– Light fixtures
– Lamp types, size and numbers
– Levels of illumination
– Uses of task lighting

AEE/ Certified Energy Manager CEM ® B-8

 Energy Balance for
Facility
Electricity Natural Gas
2,597,700 kWh 329,863 GJ

Lighting Boiler
130,560 kWh 329,863 GJ
Facility
Motors Electric
1,516,619 kWh Heaters
100,100 kWh

HVAC Miscellaneous
Compressors 34,286 kWh 260,000 kWh
116,379 kWh Chillers
274,560 kWh
Total: 2,432,501 kWh/yr

AEE/ Certified Energy Manager CEM ® B -9

 Demand Balance for a Facility
Electricity
345-378 kW

Lighting
18 kW
Facility
Motors Electric
197.1 kW Heaters 13 kW

HVAC Miscellaneous
Compressors 17.1 kW 35 kW
14.9 kW Chillers
34.3 kW
Total: 329.4 kW

AEE/ Certified Energy Manager CEM ® B -10

 Geographic Location / Degree Days /
Weather Data
• Geographic location of facility and weather data for
that location are important.

• Obtain average degree days for heating and cooling

for that location for the past twelve months from:
– Closest weather station, or
– Local utility

• Degree-day data is very useful in analyzing energy

needed to heat or cool facility.

AEE/ Certified Energy Manager CEM ® B - 11

Heating degree days (HDD) and cooling degree
days
(CDD) are separate values to a particular geographic
location.

The degree day concept assumes:

• The average building has a desired indoor temperature of
21.1°C,

• 2.8°C of this is supplied by internal heat sources such as

lights, appliances, equipment, and people.

 The base for computing degree-days is 18.33°C.

AEE/ Certified Energy Manager CEM ® B - 12

 Example

Assume a period of three days when the outside

temperature averaged 10°C each day

The number of HDD for this three day period would

be:

HDD = (18.33°– 10°) * 3 days

= 25 degree days.

AEE/ Certified Energy Manager CEM ® B - 13

 Facility Layout

• Obtain the facility layout or plan; review it to

determine:

– Facility size
– Floor plan
– Construction features
(wall and roof material, insulation levels, door
and window sizes and construction)

AEE/ Certified Energy Manager CEM ® B - 14

 Operating Hours

• Obtain operating hours for facility

– How many shifts does the facility run?

– Is there only a single shift?
– Two? Three?

Knowing the operating hours in advance gives some

indication as to whether any loads could be shifted
to off-
peak times.

AEE/ Certified Energy Manager CEM ® B - 15

 Equipment List
• Get equipment list for facility and review it before
conducting audit.

• Identify all large pieces of energy-consuming

equipment such as:

– Heaters, air conditioners, water heaters, and

specific process-related equipment

• Equipment list and data on operational uses of

equipment provide understanding of major
energy-consuming tasks or equipment at facility.

AEE/ Certified Energy Manager CEM ® B - 16

 Nine Major Systems To Consider
1. Building Envelope
2. HVAC System
3. Electrical Supply System
4. Lighting
5. Boiler and Steam System
6. Hot Water System
7. Compressed Air System
8. Motors and drives
9. Special Purpose Process Equipment

AEE/ Certified Energy Manager CEM ® B - 17

As you examine each system, you should ask:

1. What function(s) does this system serve?

2. How does this system serve its function(s)?

3. What is the energy consumption of this system?

4. What are the indications that this system is

probably working ?

AEE/ Certified Energy Manager CEM ® B - 18

5. If this system is not working, how can it be
restored to good working condition?

6. How can the energy cost of this system be

reduced?

7. How should this system be maintained?

8. Who has direct responsibility for maintaining and

improving the operation and energy efficiency of
this system?

AEE/ Certified Energy Manager CEM ® B - 19

 Preliminary Identification of Energy
Management Opportunities (EMOs)
• During the on-site audit, take notes on potential
EMOs that are evident.

• In general, devote the greatest effort to analyzing

and implementing the EMOs which show the greatest
savings, and the least effort to those with the
smallest savings potential.

• Identifying EMOs requires a good knowledge of

energy efficiency technologies available to do the
same job with less energy and cost.

AEE/ Certified Energy Manager CEM ® B - 20

 The Energy Audit Report

• The energy audit report

– Explains the final results of the energy

analyses

– Provides energy cost saving

recommendations.

AEE/ Certified Energy Manager CEM ® B - 21

 Energy Audit Report Format

• Executive Summary
Brief summary of recommendations and cost
savings

• Introduction
Purpose of the energy audit
Need for a continuing energy cost control program

• Facility Description
Size, construction, facility layout, and hours of
Operation, equipment list, with specifications

AEE/ Certified Energy Manager CEM ® B - 22

• Energy Bill Analysis
Utility rate structures
Tables/graphs of energy consumptions and
costs
Discussion of energy costs and energy bills
• Energy Management Opportunities (EMO’s)
Listing of potential EMOs
Cost and savings analysis
Economic evaluation
• Energy Action Plan
Schedule for implementing EMOs
Designation of an energy monitor
• Conclusion
Additional comments not otherwise covered

AEE/ Certified Energy Manager CEM ® B - 23

 Emission Factors

Emissions by Fuel Type Ton CO2 Ton SO2 Ton NOx

1 ton Mazout 3.229600 0.080000 0.004000
1 ton Solar 3.229600 0.040000 0.004000
3
1 m of Natural Gas 0.001950 0.000000 0.000000
1 kWh of Electricity (assumes
emissions are from a central utility-
owned power stration) 0.000775 0.000019 0.000002
1 ton of LPG 3.027000 0.000000 0.000000

AEE/ Certified Energy Manager CEM ® B - 24

Drawing process flow diagram -Identification of waste
streams and obvious energy wastage
Reporting Format for Energy Conservation Recommendations
A: Title of Recommendation
B: Description of Existing System
and its operation
C: Description of Proposed system
and its operation
: Combine DG set cooling tower with main
cooling tower
: Main cooling tower is operating with 30% of its
capacity. The rated cooling water flow is 5000
m3/hr.Two cooling water pumps are in operation
continuously with 50% of its rated capacity. A
separate cooling tower is also operating for DG
set operation continuously.
: The DG Set cooling water flow is only 240 m3/h.
By adding this flow into the main cooling tower,
will eliminate the need for a separate cooling
tower operation for DG set, besides improving
the %loading of main cooling tower. It is
suggested to stop the DG set cooling tower
operation.
D: Energy Saving Calculations
3
Capacity of main cooling tower = 5000 m / hr
Temp across cooling tower (design) = 8 oC
Present capacity = 3000 m3/hr
Temperature across cooling = 4 oC
tower(operating)
% loading of main cooling tower = (3000 x 4)/(5000 x 8) = 30%
Capacity of DG Set cooling tower = 240 m3/hr
Temp across the tower = 5oC
Heat Load (240x1000 x 1x 5) = 1200,000 K.Cal/hr

Power drawn by the DG set

cooling tower
No of pumps and its rating
No of fans and its rating
Power consumption@ 80% load
Additional power required for main
cooling tower for additional water
flow of 240m3/h (66.67 l/s) with 6
kg/cm2
Net Energy savings
E: Cost Benefits
Annual Energy Saving Potential
Annual Cost Savings
Investment (Only cost of piping)
Simple Pay back Period
= 2 nos x 7.5 kW
= 2 Nos x 22 kW
= (22 x2 +7.5 x2) x.80 = 47 kW
= (66.67 x 6) / (102 x 0.55) = 7 kW
= 47 – 7 = 40 kW
= 40kWx 8400hr = 3,36,000 Units/Year
= 3,36,000 xRs.4.00 = Rs.13.4 Lakh per year
= Rs 1.5Lakhs
= Less than 2 months
Energy Audit Reporting Format
 Energy
Audit
Reporting
Format
Worksheet for energy audit and
reporting
 Understanding energy costs
Typical summary of energy bill by a company

Conversion to common unit of energy

Benchmarking for energy performance

• Internal Benchmarking
 Historical and trend analysis

• External Benchmarking
 Across similar industries
Scale of operation, vintage of technology, raw material
specification and quality and product specification and quality
 Bench Marking Energy
Performance
• Quantification of fixed and variable energy
consumption trends vis-à-vis production levels
• Comparison of the industry energy performance
w.r.t. various production levels (capacity
utilization)
• Identification of best practices (based on the
external benchmarking data)
• Scope and margin available for energy
consumption and cost reduction
• Basis for monitoring and target setting exercises
 Benchmarking parameters
•Gross production related
e.g. kWh/MT clinker or cement produced (cement plant)
e.g. kWh/MT, kCal/kg, paper produced (Paper plant)
e.g. kCal/kWh Power produced (Heat rate of a power plant)
e.g. Million kilocals/MT Urea or Ammonia (Fertilizer plant)

•Equipment / utility related

e.g. kWh/ton of refrigeration (on Air conditioning plant)
e.g. % thermal efficiency of a boiler plant
e.g. kWh/NM3 of compressed air generated
e.g. kWh /litre in a diesel power generation plant. 
Maximizing system efficiency
• Eliminate steam leakages by trap
improvements
• Maximise condensate recovery
• Adopt combustion controls for
maximizing combustion efficiency
• Replace pumps, fans, air compressors,
refrigeration compressors, boilers,
furnaces, heaters and other energy
conservation equipment, wherever
significant energy efficiency margins
exist
 Optimising Input Energy
Requirement

• Shuffling of compressors to
match needs.
• Periodic review of insulation
thickness
• Identify potential for heat
exchanger networking and
process integration.
• Optimisation of transformer
operation with respect to load
Fuel and Energy Substitution

Fuel substitution
• Natural gas is increasingly the fuel of choice as
fuel and feedstock in the fertilizer, petrochemicals,
power and sponge iron industries.
• Replacement of coal by coconut shells, rice
husk,etc
• Replacement of LDO by LSHS

Energy substitution
• Replacement of electric heaters by steam heaters
• Replacement of steam based hot water by solar
systems
 Electrical Measuring Instruments:
These are instruments for measuring
major electrical parameters such as kVA,
kW, PF, Hertz, kvar, Amps and Volts. In
addition some of these instruments also
measure harmonics.

These instruments are applied on-line i.e

on running motors without any need to
stop the motor. Instant measurements
can be taken with hand-held meters,
while more advanced ones facilitates

Energy Audit
cumulative readings with print outs at
specified intervals.

Instruments Combustion analyzer:

This instrument has in-built chemical
cells which measure various gases such
as CO2, CO, NOX, SOX etc

Fuel Efficiency Monitor:

This measures Oxygen and temperature
of the flue gas. Calorific values of
common fuels are fed into the
microprocessor which calculates the
combustion efficiency.

Fyrite:

A hand bellow pump draws the flue gas

sample into the solution inside the fyrite.
A chemical reaction changes the liquid
volume revealing the amount of gas.
Percentage Oxygen or CO2 can be read
from the scale.

Contact thermometer:
Contact thermometer:

These are thermocouples which measures

for example flue gas, hot air, hot water
temperatures by insertion of probe into
the stream.

For surface temperature a leaf type probe

is used with the same instrument.

Infrared Pyrometer: Energy Audit

This is a non-contact type measurement
which when directed at a heat source Instruments
directly gives the temperature read out.
Can be useful for measuring hot jobs in
furnaces, surface temperatures etc.

Pitot Tube and manometer:

Air velocity in ducts can be measured

using a pitot tube and inclined manometer
for further calculation of flows.

Ultrasonic flow meter:

This a non contact flow measuring device

using Doppler effect principle. There is a
transmitter and receiver which are
positioned on opposite sides of the pipe.
The meter directly gives the flow. Water
and other fluid flows can be easily
measured with this meter.
 Speed Measurements:

In any audit exercise speed measurements

are critical as thay may change with
frequency, belt slip and loading.

A simple tachometer is a contact type

instrument which can be used where
direct access is possible.

More sophisticated and safer ones are

non contact instruments such as
stroboscopes.

Energy Audit Tachometer Stroboscope

Instruments Leak Detectors:

Ultrasonic instruments are available

which can be used to detect leaks of
compressed air and other gases which are
normally not possible with human
abilities.

Lux meters:

Illumination levels are measured with a

lux meter. It consists of a photo cell
which senses the light output, converts to
electrical impulses which are calibrated
as lux.