How to save energy and money

Guide Book 1
THE 3E STRATEGY

STRATEGY

ENERGY EFFICIENCY EARNINGS

3E

STRATEGY

Netherlands Ministery of Economic Affairs

RA

LS

AND

EN

Technical Services International

TSI

EUROPEAN COMMISSION

RG

MI
N

HOW TO SAVE ENERGY AND MONEY: THE 3E STRATEGY

This booklet is part of the 3E strategy series. It provides advice on practical ways of how to save energy and money in companies and the ways of going about it. Prepared for the European Commission DG TREN by: The Energy Research Institute Department of Mechanical Engineering University of Cape Town Rondebosch 7701 Cape Town South Africa www.eri.uct.ac.za This project is funded by the European Commission and co-funded by the Dutch Ministry of Economics, the South African Department of Minerals and Energy and Technical Services International, with the Chief contractor being ETSU. Neither the European Commission, nor any person acting on behalf of the commission, nor NOVEM, ETSU, ERI, nor any of the information sources is responsible for the use of the information contained in this publication The views and judgements given in this publication do not necessarily represent the views of the European Commission

HOW TO SAVE ENERGY AND MONEY: THE 3E STRATEGY

HOW TO SAVE ENERGY AND MONEY: THE 3E STRATEGY

Other titles in the 3E strategy series: HOW HOW HOW HOW HOW HOW TO TO TO TO TO TO SAVE SAVE SAVE SAVE SAVE SAVE ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY AND AND AND AND AND AND MONEY MONEY MONEY MONEY MONEY MONEY IN IN IN IN IN IN STEAM SYSTEMS ELECTRICITY USE BOILERS AND FURNACES COMPRESSED AIR SYSTEMS REFRIGERATION INSULATION SYSTEMS

Copies of these guides may be obtained from: The Energy Research Institute Department of Mechanical Engineering University of Cape Town Rondebosch 7701 Cape Town South Africa Tel No: 27 (0)21 650 3892 Fax No: 27 (0)21 686 4838 Email: 3E@eng.uct.ac.za Website: http://www.3e.uct.ac.za

ACKNOWLEDGEMENTS
The Energy Research Institute would like to acknowledge the following for their contribution in the production of this series of guides: . Energy Technology Support Unit (ETSU), UK, for permission to use information from the Energy Efficiency Best Practice series of handbooks. . Energy Conservation Branch, Department of Energy, Mines and Resources, Canada. . The IEA CADDET Energy Efficiency Energy Management in Industry booklet is a major source for this guide. . Wilma Walden for graphic design work (Walden@grm.co.za).

Table of Contents
1. INTRODUCTION ................................................................................................................................................................................... 5 2. A COMPANY 3E STRATEGY ......................................................................................................................................................... 2.1 Commitment and Organisation ................................................................................................................................................ 2.2 Common problems associated with Energy Cost Reduction Programmes ...................................................... 2.2.1 Uneven Distribution of Knowledge ............................................................................................................................ 2.2.2 Lack of Accountability ........................................................................................................................................................ 2.3 Cost Reduction Programme ....................................................................................................................................................... 2.4 Achieving the Savings: In-house Expertise and Consultants ....................................................................................... 2.4.1 Fee Based Consultants ....................................................................................................................................................... 2.4.2 Performance Based Consultants ................................................................................................................................... 2.5 Energy Audits ...................................................................................................................................................................................... 2.5.1 Walk Through Audit ........................................................................................................................................................... 2.5.2 Diagnostic Audit .................................................................................................................................................................... 3. ENERGY CONSUMPTION AND COSTS .............................................................................................................................. 3.1 Consumption and Costs ............................................................................................................................................................... 3.1.1 Invoice Data ............................................................................................................................................................................. 3.1.2 Annual Energy Input and Site Performance Indicators ..................................................................................... 3.1.3 Instrumentation and Closer Investigation ................................................................................................................. 3.2 Fuel Purchase and Tariffs .............................................................................................................................................................. 3.2.1 Pipe Line Gas .......................................................................................................................................................................... 3.2.2 Electricity ................................................................................................................................................................................... 3.2.3 Liquid Oil Products .............................................................................................................................................................. 3.2.4 Coal .............................................................................................................................................................................................. 3.2.5 Liquefied Petroleum Gases .............................................................................................................................................. 4. MONITORING AND TARGETING (M & T) ....................................................................................................................... 4.1 Characteristics of Processes Determined from M&T Data ........................................................................................ 4.2 Process Energy Linked to Production .................................................................................................................................... 4.3 Approximating Multivariable Situations ................................................................................................................................. 6 6 6 6 6 7 9 9 9 9 9 10 11 11 11 12 13 13 13 13 14 14 14 15 16 17 24

4.4 Building Heating linked to Degree Days ............................................................................................................................... 25 4.4.1 Degree Days ............................................................................................................................................................................ 25 4.4.2 Building Cooling linked to Degree Days .................................................................................................................. 28 4.5 Processes linked to Time Through Activities ..................................................................................................................... 28 4.6 Processes with No Relation to Other Variables or Time ........................................................................................... 30 4.7 Monitoring Data as an Indicator of Efficiency .................................................................................................................... 30 4.7.1 Non-productive and Activity-unrelated Energy Consumption ..................................................................... 31 4.7.2 Production-related Efficiency ........................................................................................................................................... 32 4.7.3 Building Heating Efficiency ................................................................................................................................................ 33 5. USING INFORMATION ON ENERGY USE FOR MANAGEMENT CONTROL .......................................... 36 5.1 Introduction .......................................................................................................................................................................................... 36 5.1.1 Non-productive Consumption ....................................................................................................................................... 36 5.1.2 Production-related Efficiency ........................................................................................................................................... 36 5.2 CUSUM Technique .......................................................................................................................................................................... 37 5.2.1 The Control Chart ............................................................................................................................................................... 39 5.2.2 Non-parametric Forms of CUSUM and Control Chart .................................................................................. 41 5.2.3 Application of CUSUM ...................................................................................................................................................... 41 6. FACTORY SERVICES ............................................................................................................................................................................. 43 6.1 Motors and Drives ............................................................................................................................................................................ 43 6.1.1 Check List .................................................................................................................................................................................. 43 6.2 Compressed air .................................................................................................................................................................................. 44 6.2.1 Check List .................................................................................................................................................................................. 44 6.3 Refrigeration ......................................................................................................................................................................................... 44 6.3.1 Check Lists ................................................................................................................................................................................ 45 6.3.2 Refrigeration Cold Stores ................................................................................................................................................. 45 6.4 Chilled and Cooling Water .......................................................................................................................................................... 45 6.4.1 Check Lists ................................................................................................................................................................................ 46

7. INDUSTRIAL HEATING PROCESS .............................................................................................................................................. 7.1 Boilers and Boilerhouse Management .................................................................................................................................... 7.1.1 Check List ................................................................................................................................................................................. 7.2 High Temperature Processes ..................................................................................................................................................... 7.2.1 Check List ................................................................................................................................................................................. 7.3 Low Temperature Processes ...................................................................................................................................................... 7.3.1 Check List ................................................................................................................................................................................. 8. BUILDING SERVICES ............................................................................................................................................................................ 8.1 Space Heating ..................................................................................................................................................................................... 8.1.1 Check List ................................................................................................................................................................................. 8.2 Air Conditioning and Ventilation .............................................................................................................................................. 8.2.1 Check List ................................................................................................................................................................................. 8.3 Hot Water and Water Supply .................................................................................................................................................. 8.3.1 Check List ................................................................................................................................................................................. 8.4 Lighting .................................................................................................................................................................................................... 8.4.1 Check List .................................................................................................................................................................................

47 47 48 48 49 49 49 50 50 50 51 51 51 51 51 52

9. CAPITAL EXPENDITURE .................................................................................................................................................................. 53 9.1 Financial Criteria ................................................................................................................................................................................ 53 9.2 Raising Capital ..................................................................................................................................................................................... 53

1. INTRODUCTION

The 3E's are 'Energy Efficiency Earnings' and this booklet lays out the how to of implementing the strategy in companies. Energy is one of the largest controllable costs in most organizations and there is considerable scope for reducing energy consumption and hence cost. The benefits are reflected directly in an organization's profitability but they also contribute to improving the global environment. The essentials of implementing the 3E strategy are detailed in what follows. An energy audit is an essential activity for any organisation wishing to control energy and utility costs. This booklet describes the five fundamental aspects of an energy management strategy:
.

Sections 6, 7 and 8 covers savings in energy usage through positive practical methods for improving the efficiency of plant and industrial processes and Section 9 is concerned with the financial appraisal of energy efficiency.

This booklet is intended to act as a practical manual to enable Works Engineers, Energy, and Engineering Managers to make savings in site energy costs. Accordingly the major sections are sub-divided into the smaller sub-sections:
.

Section 2 details the need for a Company 3E Strategy or energy plan and outlines the basis for a cost reduction program; Section 3 relates to purchase and cost control as well as a consumption audit of primary energy usage; Section 4 gives the framework and methodology for monitoring and targeting energy savings;

the audit and use of energy for typical industrial plant and processes: a checklist of potential methods for reducing costs.

In this way, depending on individual experience and site requirements, only the relevant parts need to be read in detail.

2. A COMPANY 3E STRATEGY

A Company's 3E strategy or energy plan forms the basis for minimizing purchase costs and use of energy and related utilities such as water, telecommunications and transport. The main organizational aspects are outlined below while the technical and practical aspects are detailed in the remainder of the booklet.

2.2

COMMON PROBLEMS ASSOCIATED WITH ENERGY COST REDUCTION PROGRAMMES

UNEVEN DISTRIBUTION OF KNOWLEDGE

2.1

COMMITMENT AND ORGANISATION

2.2.1

Effective energy management requires the commitment of senior management. This provides the authority to take action, to utilise people skills, to provide finance, other resources and, most important, motivation. The organisation of an energy management plan can then be determined. This can vary from a committee or working party approach to the assignment of additional responsibilities to specific staff. The energy programme will depend on a number of factors, including: company size; relative importance on energy costs; technical expertise; and management style. The important aspect is that energy is integrated as a management function and is managed in the same way as any other resource in the company.

Figure 1 overleaf represents a typical situation. Technical and engineering staff are often aware of effective energy and cost saving measures. This knowledge, often does not get implemented by operational staff, as middle and top management are not aware of the potential energy and cost savings.

2.2.2

LACK OF ACCOUNTABILITY

It is often the case that strategies to save energy are not considered by all the sections of a factory. A utilities section is responsible for supplying various forms of energy elsewhere on a plant for production. By simple changes in production or maintenance, large savings can very often be made. These savings may not interfere with the process or outputs. They are in many cases not considered because there is an absence of an energy and cost reduction programme that involves various levels of management and plant sections involved.

Figure 1: Effective use of information. (source: CADDET)

2.3 COST REDUCTION PROGRAMME

Energy saving projects may be divided into four categories: (i) Housekeeping. Simply improved housekeeping, making sure that equipment operates properly, cleaning fouled surfaces and pipes and having regular maintenance can save much energy and money. (ii) Low Cost. Many energy improvements may be made with low cost modifications and improvements. (iii) Retrofits. Retrofitting existing systems with new parts and equipment can bring great benefits in energy efficiency. (iv) Major Capital expenditure. This is the most costly option and should only be considered last. Often the money saved through options (i) to (iii) can finance (iv).

The basis for reducing site energy costs is shown in flow chart form in Figure 1, together with a reference to the relevant part of this booklet for each stage.
.

Energy consumption and costs

Auditing and monitoring are linked as components of an overall strategy for effective energy management and these are discussed in Sections 3, 4 and 5. In effect this preliminary audit is to identify the main areas of expenditure and to minimize utility purchase costs. Monitoring provides management control of utility costs in the same way as control of labour or raw material costs.
.

Factory services and industrial processes

The understanding of energy use in industrial processes can be assisted by preparing an energy flow diagram as part of an audit based on examining current practices and patterns of use.

In this way improvement in operation and the potential for energy saving projects can be identified.

Opportunities for cost savings with the main industrial processes and factory services are presented in checklists in Sections 6, 7 and 8.

Figure 2: Flow chart for energy audits. (source: ETSU)

Capital investment and project implementation

staff will undertake work in far less time than inexperienced staff, however well qualified, although the daily rates may be double.

Proposals for high levels of capital expenditure should conform to the Company's accepted methods of financial appraisal. An overview of cost/benefit analysis is given in Section 9 together with alternative means of financing projects such as leasing and Contract Energy Management.

2.4.2

PERFORMANCE BASED CONSULTANTS

2.4 ACHIEVING THE SAVINGS: IN-HOUSE EXPERTISE AND CONSULTANTS

With the relevant staff, time and expertise, most savings can be achieved in-house. If in-house manpower is not available consultants can be employed. In the area of cost reduction paying for consultants generally falls into two categories: . fee based . performance based on savings achieved Whichever option is chosen it is worth carrying out simple checks to ensure value for money. This should include: . asking for and taking up references; . meeting the engineers or at least obtaining CVs; . obtaining more than one quotation; . using a member of a recognized body.

Some consultants now work on a performance basis, with all fees coming from savings achieved. The fees are usually based on a percentage of savings for an agreed period of time, typically 50% for periods ranging from one year to five years. Performance Contracts need to be checked in the same way as those for fee based work. Contract Energy Management (CEM) companies generally provide finance for capital intensive work as well as management of site utility services. Contracts are usually fairly long term, typically from five to ten years.

2.5

ENERGY AUDITS

An energy audit involves the identification of areas throughout a facility where energy may be wasted because of nonexistent, or inadequate insulation. The audit may be applied to the facility as a whole, or may be concentrated on specific pieces of process equipment or piping systems.

2.4.1

FEE BASED CONSULTANTS

2.5.1

WALK THROUGH AUDIT

This has been the traditional way of employing energy consultants, usually on a fixed fee basis but sometimes on a day rate. The main consideration is to ensure clear terms of reference. In addition to day rates, time and work delivered need to be carefully controlled. Experienced and competent

The initial action is a Walk Through Audit, which is a tour through the facility looking for obvious signs of energy waste. The walk through audit is generally more meaningful if an individual who, though not associated with the facility operation, and who is familiar with both the subject of process insulation

and the concept of energy management conducts it. Typical items which could be noticed during a walk through audit would include missing or damaged insulation, hot or cold surfaces, wet insulation, deteriorating insulating coverings or protective finishes, missing or damaged vapour retarders, gaps in insulation at expansion/contraction joints, excessive heat radiating from insulated surfaces and other similar items.

determine the existing energy loss, the reduction in energy loss which would result if new or additional insulation or covering were installed and the installed cost of the added material. The reduction in energy consumption establishes the rand savings. With this information, simple payback calculations can establish the financial viability of the opportunity.

2.5.2

DIAGNOSTIC AUDIT

Once items have been identified in the walk through audit, a diagnostic audit is required to

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3. ENERGY CONSUMPTION AND COSTS

To be effective, energy and utility management must address three essential areas:
. . .

in different forms and the unit costs; what it is used for; which uses are essential and which are not. This information should be obtained from the following:
.

Purchasing; Management; Engineering.

This Section covers the first two areas. The first step in identifying areas for potential savings is to establish the quantity and cost of the energy and utilities used on the site. This includes fuel oil, coal, gas and electricity but also water and, on some sites, vehicle fuel usage. Having completed this analysis it is then essential to investigate whether the utilities are being purchased competitively. It is pointless investing capital in engineering projects unless the energy or utility is being bought at the right price. Management control is an essential element in any cost reduction programme. Apart from the need to monitor and maintain savings brought about by improved purchasing and engineering projects, there are often savings available simply by managing resources more effectively using standard monitoring and targeting techniques.

utility invoices for fuel, electricity and water for at least one year; site energy records and sub metering; production information.

3.1.1 INVOICE DATA

Data should be checked carefully to ensure that there is a complete record and that it can be identified with known supply points. The numbers required are energy units for each month as well as tariff charges and structure. Note any estimated readings; additional earlier invoices should be collected for comparison if there are more than one or two estimates in the audit period. A summary table should then be prepared for each fuel, electricity and water showing consumption and costs. The monthly trends in consumption are correspondingly plotted. In this way variations during the year can be seen and the trend examined to determine any untoward pattern of consumption.
.

3.1 CONSUMPTION AND COSTS

It is necessary to obtain an accurate picture of current consumption: how much is spent on energy

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A seasonal or cyclical pattern could indicate major seasonal loads such as space heating. General upward or downward trends can reflect changes in load or efficiency. They could also be attributed to changes in operating practice.

The lack of a clear pattern where variations are normally expected might suggest a lack of control. Where boiler plant serves a mixed load, a steady base load can be identified, usually due to domestic hot water, standing losses and any continuous process load.

The annual consumption for each energy type should be converted to a standard unit (e.g. gigajoules, GJ) using the conversion factors in Appendix 1. After calculating the percentage breakdown of total energy consumption and cost of energy type, a table can be prepared. The next stage is to obtain information on energy use by the various types of activity in the organization, which can then be audited separately to establish consumption and costs. Effort can then be directed to the major areas and opportunities for savings can then be more carefully examined, as set out in Sections 6, 7 and 8. The first step is to establish a list of main services and/or end users. Try to identify specific areas of consumption such as:
.

3.1.2

ANNUAL ENERGY INPUT AND SITE PERFORMANCE INDICATORS

The total annual energy use on a site can be used to calculate a Performance Index, to assess the energy performance and indicate whether there is likely to be a good opportunity for improvement. These indices provide useful guidance in setting priorities, but actual settings will depend on production and process plant.

factory services (e.g. motive power; compressed air; refrigeration etc.);

Figure 3: Simple energy account for a small factory. (source: ETSU)

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heating processes (boilers; furnaces; kilns etc.); building services (space heating; domestic hot water; lighting etc.).

of the efficiency of the plant can be obtained. The cost of submetering can usually be justified on major loads, particularly where little information on energy use is currently available. Once installed, meters should read on a regular basis to establish trends. The impact of energy saving initiatives, or process changes, can then readily be determined.

Initially consumption and, therefore, costs can be estimated on the basis of installed load, operating hours and utilization factor. Consumption information can be presented in the form of a Sankey diagram, as illustrated in Figure 3. A Sankey diagram is useful in that it gives an immediate visualization of energy flows and thus enables priority areas to be identified and tackled.

3.2

FUEL PURCHASE AND TARIFFS

3.1.3

INSTRUMENTATION AND CLOSER INVESTIGATION

Obtaining the best energy price depends on market knowledge and negotiating skills. If in-house expertise is not available there are numerous consultants and advisers able to assist.

More detailed information on consumption can be obtained in a number of ways:

3.2.1
. .

PIPE LINE GAS

demand profile recording; metering selected items of plant/factory areas.

There is usually a great deal to be learnt from a study of the energy profile. Initially meters can be read manually, but the use of instrumentation makes data collection more straightforward. Electrical demand profiles can be monitored with clip-on instrumentation and this may well identify scope for savings through the control of Maximum Demand. Gas and water meters without built-in pulsed outputs can be read automatically using optical couplers. Data transfer to a personal computer and the use of a spreadsheet or similar program will ease analysis. Installation of meters on an area or individual plant basis can be used to record consumption. By comparing energy use and production, an analysis

Currently pipeline gas is sold by SASOL. Various tariffs are available subject to consumption volumes. While not yet in place, it is likely that imported natural gas will supplement the existing network and new networks may be installed in Cape Town. Large boiler plant can operate on dual-fuel supplies and it is important to ensure that the most cost competitive fuel is used, wither interruptible gas or fuel oil.

3.2.2

ELECTRICITY

The electricity market is becoming more complex with a range of fixed tariff options available for consumers. Contracts can be on a fixed unit cost basis, similar to tariff structures, or electricity can be purchased on a pool-based contract with prices

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varying throughout the day, depending on supply and demand. In this climate, market intelligence and negotiating skills are essential and companies must keep in touch with what is on offer. When large load shifts to off-peak tariff times are possible, they may be made more viable by renegotiating the time of use tariff. This may be beneficial to the supplier as it would increase off peak demand and help increase his load factor.

3.2.4

COAL

It is important that coal prices are assessed on the basis of delivered energy and not weight when comparing competitive quotes. Bulk purchases can provide additional savings.

3.2.5

LIQUEFIED PETROLEUM GASES

3.2.2.1

ELECTRICITY TARIFF ASSESSMENT

Butane or propane can be bought from various suppliers either on a fixed price or on an indexed, variable, basis. Again, knowledge of market conditions is important in the purchasing process. For sites with a large water use it is essential to carry out a detailed mass balance to identify both supply and effluent volumes and ensure that charges are correct, and also to detect wastage, particularly at weekends when production is not occurring. On water systems there are often large savings available from preventing leaks and wastage. Initially, monitoring of use should be carried out through hourly readings. Where a water borehole is available this is generally the cheapest means of supply. It can also be cost effective to install an effluent treatment plant as a means of reducing overall disposal costs.

Supply capacity, Maximum Demand and, where appropriate, power factors should be checked to ensure that these costs are minimized. The tariff structure most appropriate to the site operating pattern should be selected. The demand profile should be monitored and the various tariff options costed to determine the optimum choice.

3.2.3 LIQUID OIL PRODUCTS

Liquid fuels are available from a number of suppliers, and it is therefore possible to negotiate for the best deal. Prices depend primarily on market conditions, but also vary with quantity purchased, season and supplier. For example, if storage facilities are adequate, oil can be purchased at lower costs during the summer months for use at the start of the winter season.

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4. MONITORING AND TARGETING (M & T)

The initial energy audit provides information on consumption and costs on the site and can also highlight areas where savings can be made. M & T is a disciplined approach to energy management, which ensures that energy resources are used to the maximum, as well as monitoring savings brought about by improved purchasing and through energy saving investments. At its simplest, monitoring involves the systematic and regular measurement and recording of the energy consumption of the whole organization. The principles necessary for forming a monitoring and targeting program are loosely pictured in Figure 4. Commitment, understanding and motivation for

the implementation of the M & T part of a 3E program are essential in order obtain success. Upon these the data that has been gathered must be presented to management together with proposed improvements. This data can be obtained in a variety of ways for example, from fuel invoices, which might require adjustment to allow for different reading dates, or from metering. It is important that the monitoring process is tied in with other company review processes, such as monthly financial and production figures, so that information on energy flows can be meaningfully related to other performance data.

Figure 4: Monitoring and Targeting action steps. (source: ETSU)

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Figure 5: Information flows necessary for successful monitoring and targeting. (source: CADDET)

4.1 CHARACTERISTICS OF PROCESSES DETERMINED FROM M & T DATA

From an M & T standpoint, industrial processes divide into two groups: 1. Processes where energy use is largely determined by the physics of the process, i.e. how much energy is used and to what extent the process transforms the product. This group comprises all heat-based processes (heating,

melting, evaporation); all chemical and electrochemical processes; and some processes requiring physical work such as the compression of gases and vapours (for example, refrigeration and compressed air). 2. Processes in which physics provides a poor indication of the energy needs or of the extent of the process most of these processes are mechanical in nature and comprise processes such as cutting, size reduction, mixing, conveying, etc.

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All the processes in the first group are sufficiently consistent in their energy behaviour to make M&T easily applicable: success depends mainly on the skill with which it is applied. In the second group, whether or not M & T has a place depends on how far energy consumption can be meaningfully related to some measure of production, or whether another system of performance evaluation can be found. Fortunately, a very large proportion of industrial energy use comes into the first group, and much of the Statistical Process Control (SPC) element of quality management has been developed to handle processes in the second group. So, for a very wide range of processes there is already some established basis on which measured energy use could be used for management control. Within the second group there are three forms of

energy, which are difficult to handle:

.

energy consumption associated with activities linked to time rather than production this applies to many of the nonproduction uses of electricity; energy consumption, which is not linked to production but to the weather space heating and space cooling; vehicle fuel.

4.2 PROCESS ENERGY LINKED TO PRODUCTION

In processes where there is a strong link to production, the first requirement is to establish the nature of the link. This is easiest to consider in the form of an energy vs. production scatter graph.

[te metric tonnes]

Figure 6: Energy vs. production for a glass melting furnace the common form of graph. (source: ETSU)

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Figure 7: Energy vs. production for an electric arc furnace a special case where the line passes through 0,0. (source: ETSU)

Figure 6 represents a basic pattern to which the behaviour of most processes can be related. Such a graph contains three elements: 1. An intercept (the point where a best fit line through the data cuts the energy axis at zero (production) this is the energy that would be required if this process ran but did not produce anything. It is also energy consumption that continues while production is in progress but does not contribute to production. 2. A slope the amount of energy required at any given level of production to process each additional unit of production. The efficiency of the process can be established from the slope. 3. The scatter the amount by which the energy used for any one level of production varies from one period to another. This tends to be governed by operational factors. 4. The pattern in Figure 6 is the most commonly observed, although this does not imply that it is

the most likely for any specific factory or sector. The type of pattern found in a given factory is determined mainly by the industry sector. Figures 7 13 show examples of other common types of pattern. Figure 6 is taken from a glass furnace. It has an intercept on the energy axis, the line is straight over the whole range of production, there is not much scatter, and production covers a wide range. The best-fit line to the data can be formulated as: Energy (m production) c Where c and m are empirical coefficients (empirical means they are determined from the data, whether fitting a line to the data by eye or calculating it from the data). In this case, c is 71.5MWh/day and m is 1.185MWh/te so the pattern is: energy (MWh/day) {1.185 production (te/day)} 71.5

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Similar patterns are found for most furnaces (for heating or melting), ovens, kilns, some dryers and many more processes. In the absence of other indications, it is usual to assume a relationship of this kind. Figure 7 is similar to Figure 6 but has no intercept, i.e. it is a straight line that, when extrapolated, passes through the origin (0 production, 0 energy). It is generally rare for this to be the case. This example is for an electric arc furnace melting steel for continuous casting. Our knowledge of physics leads us to expect the line to pass through the origin. It would be possible to represent this pattern by the formula: Energy m production Where m is an empirical constant and the c coefficient from the previous example is 0. In

general, this should not be assumed unless there is a good physical case for it. It happens to be an important case because rearranging the formula leads to: energy m production In other words, the expected value of energy/ production (specific energy) is a constant, in this case 0.511 MWh/te. This is true for this and only one other of the known patterns. In all other cases, specific energy depends on the level of production, and statement of the specific energy without reference to the production rate is meaningless in management terms. In Figure 8, the intercept is overwhelmingly more important than the slope of the line. This example is for a machine for extrusion-blow moulding of thermoplastic resins.

Figure 8: Energy vs. production for an extrusion-blow moulding machine an example of a very high production-unrelated demand. (source: ETSU)

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Figure 9: Energy vs. production for an electric arc furnace an example of the impact of a very narrow range of production

There are three common circumstances which give rise to this pattern: 1. The process has innate characteristics that give it a high standing consumption but low additional consumption for each unit of production. Work-based processes in the production of plastic extrusions are a good example. In addition, processes with variable output driven by fixed-speed motors also often show a high intercept (although the line may be curved). 2. The process does not have a naturally high standing consumption but a fault is causing a high and continuous energy loss, e.g. faulty steam traps on steam-heated equipment such as sterilizes or rubber tyre moulding presses. 3. Processes where the energy consumption is representative of a fixed duty and the production variable used does not take adequate account of the real duty. An example is paper production where this shape of graph appears when steam is plotted against weight of paper produced. In paper machines, the actual process

is the evaporation of water and the machine has an essentially fixed evaporative capacity. Variations in production rate represent the different amounts of water that are evaporated for the range of paper types produced on the same machine. For the first two cases, the simple intercept formula, energy (m production) c, is appropriate, although in the second case the cause of the high standing loss needs investigation. In the third case, monitoring will be worthwhile only if there is a change in the way the production variable is measured. Note that, in this case, the specific energy is more closely related to production rate than is energy consumption. Figure 9 is similar to the third variant of the previous case. It is a process with a fixed productive capacity producing an essentially uniform product, so both the energy use and production fall consistently within a narrow range.

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Figure 10: Energy vs. production for a milk manufacturing depot an example of a curved chart created by plant with different efficiencies being operated in a merit order. (source: ETSU)

This example is for another arc furnace for steel. In this case, although the data should fit a straight line of the form energy (m production) c, c may be difficult to determine empirically from the data the long extrapolation back to zero production makes any error in the slope too significant in determining the value of the intercept by purely statistical means. The dotted line can only be established either by specific tests to establish c and find m, or by calculation of m, and using this to estimate c. If there is significant scatter, consideration may need to be given as to whether the variables being used, especially for production, are appropriate. Figure 10 is a pattern in which the line is curved, with the slope rising as consumption increases. This is for a milk manufacturing plant making butter and

milk power. Increasing slope means that the energy consumption per additional unit of output rises with production. The most common causes of this shape of chart are when:
.

as in this example, the data refer to the whole factory and production at different levels is achieved by a changing mix of plant of different efficiencies: the data refer to a part of the factory or accounting centre which covers more than one use of energy, and there is a relationship between these which is not a simple ratio, e.g. a combination of a seasonally dependent production rate and space heating, which is common in breweries.

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A suitable formulation of the pattern is then: energy {(m1F1 m2F2 m3F3 ...) production} c Where F1, F2, etc. are the fractions of the production in each period, accounted for by each item of plant, and m1, m2, etc. are empirical constants specific to those items. In Figure 11 the graph curves with reducing slope to become straight at higher production rates. This tends to be rather unusual. In a single process, the range of production that produces this effect is rarely encountered in practice, and in multiple processes it implies that most inefficient plant has priority. This data is taken from a shaft furnace used for melting aluminium. A feature of the process is the way heat in the exhaust is recovered to preheat the material entering the process; this is less

effective at low throughput. In the straight section of the line, the relationship is exactly the same as for Figure 1. The precise relationship in the curved section is usually not known, or not easily calculated. A useful modification of the formula that achieves a good empirical fit for most circumstances is: energy (1 expk production) (m production c) Where m is the slope of the straight section of the chart, c is the intercept found by extrapolating the straight section to zero production and k is an empirical constant (sometimes called an approach coefficient). Note: (1 expk production) is a common mathematical expression for approximating curves.

Figure 11: Energy vs. production for a shaft furnace an example of a curved chart caused by efficiency varying with throughput due to internal recycling of heat. (source: ETSU)

22

Figure 12: Compressor power vs. volume of compressed air in a hot rolling steel mill an example of poor control. (source: ETSU)

In Figure 12 the scatter is so great that it overwhelms an underlying pattern. There are five common reasons for this type of chart: 1. The variable used to represent production is entirely inappropriate explore other variables. 2. More commonly, the times at which energy meter readings and production records are taken are different, so there is a mismatch in the periods covered by the data. The shorter the data collection interval, the greater the impact, so it is most common in systems that use daily or weekly data. 3. The metered energy is serving more uses than just that measured by the production variable chosen this is not unusual when energy includes building heating as well as productionrelated energy.

4. It has not been noticed that the energy and/or production scale does not extend to the origin (0.0) and the process is really the type shown in Figure 4. 5. The data cover a long period of time and there has been a steady change in the energy required for a given range of production over time, which has not been taken into account. The data (Figure 12) are actually for compressed air compared to production in a steel rolling mill. A combination of the above factors is involved. It is usually possible, by further analysis, to obtain a clearer picture of the factors at work and attribute the chart to another type. The characteristic feature of Figure 13 is a negative slope. In physical terms, however, it is far more significant because of the interpretation of the

23

slope. As production increases, less energy is required and it appears, therefore, that marginal increases of production could be producing energy. This is the clue to understanding this behaviour it normally involves some heat recovery or recycling of heat, although it can involve a reduction in the extent of processing as production throughput increases. This example is for a brewery and shows the total fuel used compared to total throughput. Similar behaviour is found in the injection moulding of polymers.

two dimensional graph. It is, however, still possible to formulate energy mathematically as: Energy (m1 P1) (m2 P2) (m3 P3) c Where P1, P2 etc. refer to the other production or other parameters and m1, m2 etc. are constants related to these parameters. A common, more generally representative, formulation is:
energy (h H) (m1 P1) (m2 P2) (m3 P3) (d DD) c

4.3 APPROXIMATING MULTIVARIABLE SITUATIONS

If there are more variables controlling the energy use than are incorporated in the x-variable then it is not possible to represent these adequately on a

Where H is the productive hours in the period and h is an empirical coefficient, m1 and P1 have the same meanings as before, DD stands for degree days (a measure of the weather) and d is an empirical coefficient. If the usage pattern of plant is very variable, it may even be worthwhile extending this formulation to:
energy (h1 H1) (m1 P1) (h2 H2) (m2 P2) (d DD) c

Figure 13: Energy vs. production for a brewery an example of a line of negative slope. (source: ETSU)

24

Where the h1 and H1 refer to individual processes. Approaches of this kind have been developed for textile finishing. These coefficients can be determined by multiple regression, the method of residuals or sometimes by statistical factorisation methods. They may also be based on standard values an approach used successfully in the Flowline method in textile finishing, and in the paper industry where one machine produces many grades of paper.

4.4.1

DEGREE DAYS

Degree days are a measure of the variation of outside temperature and enable building designers and users to determine how the energy consumption of a building is related to the weather. They quantify how far, and for how long, the external temperature has fallen below set base temperatures (normally 18oC or 15.5oC for heating applications). This daily data can then be totalled for any required period a week, month, year, etc. and compared with energy data. There are four common base patterns found in industrial buildings, shown in Figures 14 to 17. The basic pattern is shown in Figure 14. This is exactly analogous to the process case of a straight line with a positive intercept, but with heating degree days as the x-variable. This example is for a textile spinning mill with close control of the environmental conditions, and therefore shows little scatter.

4.4 BUILDING HEATING LINKED TO DEGREE DAYS

The most appropriate measure of the weather for monitoring the heating and cooling needs of buildings is the degree day.

Figure 14: Energy vs. degree days for a textile spinning mill an example of a chart for well-controlled heating. (source: ETSU)

25

Figure 15: Energy vs. degree days for an engineering works an example of the effect of an internal temperature maintained below the degree day base temperature or where the building gains heat from elsewhere, e.g. process plant or other machinery. (source: ETSU)

It is adequately represented by the expression: Energy (m degree days) c

pattern. For M&T purposes it is represented by the expression: for degree days < DD0 energy 0 energy (m degree

The pattern in Figure 15 is a variant, which has the intercept on the degree day axis. This is interpreted as indicating that energy is not required until the outside temperature falls to a certain level of degree days, in this case, either: . the building is maintained at a lower internal temperature than the degree day base temperature or . the building is receiving heat from elsewhere, e.g. process plant, which maintains the temperature. Both of these are common circumstances in buildings and this is a frequently encountered

for degree days > DD0 days) C

where DD0 is the intercept on the degree day axis and c will be negative. Figure 16 shows energy vs. degree days for a building in which the line is curved and levels out to horizontal at extreme degree days. At the point where the line is horizontal, the heating system is not accepting more fuel, despite falling outside temperatures (usually because it is working at full capacity). As degree days increase,

26

Figure 16: Energy vs. degree days for a building with limited heating capacity. (source: ETSU)

so more heat is added which results in a falling internal temperature. The simplest mathematical representation of this pattern is: Energy c (Emax c)(1 ek
degree days

In this particular case, which is the commonest form of curvature in this direction, energy is a good fit to: Energy C m (degree days)2 and is due to temperature stratification in the building cold air ingress forcing warm air to rise and temperatures in the roof of the building becoming much warmer than at floor level. It is common in dispatch warehouses. There are other patterns relating to building heating and degree days. Detailed discussion of these is beyond the scope of this Guide. Broadly, these divide into two groups: . patterns which arise from a combination of a weather-unrelated demand and one of the patterns already discussed: . patterns in which the me followed by the points on the graph changes with season

which is easily formulated on computer spreadsheets. It is a convenient formula because it contains only three empirical constants. Emax and c are interpolated directly from the chart. k is obtainable either by successive approximations on a spreadsheet (to produce a curvature recognisable as this case within a range of 500 degree days, k tends to have a value between 0.002 and 0.01) or directly by mathematical techniques. (This curve is not amenable to evaluation by least squares regression. To use this formulation in an M&T system it must be programmed into the software.) Figure 17 shows curvature in the opposite direction.

27

so that the line moving from winter to summer or summer to winter produces loops when the individual points are joined up in time series order.

relationship and a rule associated with changes in the case temperature for degree days, however, means that this curve can be straightened by the simple expedient of using degree days to a different base temperature.

4.4.2

BUILDING COOLING LINKED TO DEGREE DAYS

4.5

For cooled buildings, behaviour is not quite the same as for heated buildings. At precisely the right cooling degree day base temperature, solar gain causes a curve, which can be shown to be a good fit to: Energy (1 expk degree days)
degree days

PROCESSES LINKED TO TIME THROUGH ACTIVITIES

) (c m

This is exactly analogous to the curve in Figure 6 but with cooling degree days substituted for production. A fortunate coincidence in this

For some processes it is difficult to establish an independent variable (such as production or degree days) against which to monitor energy consumption. Some processes, however, are associated with activities that are strongly linked to time. Time can therefore be used as the comparator to identify characteristic patterns. It is not necessary to know what the activity is in order to use time as a basis for monitoring.

Figure 17: Energy vs. degree days for a building in which temperature stratification is occurring. (source: ETSU)

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Figure 18: Fuel consumption in vehicles as an example of a seasonal pattern which is not related directly to temperature. (source: ETSU)

Example Figure 18 shows the fuel use in a large vehicle fleet. The fuel consumption of vehicles depends on environmental conditions, on the nature of the load and on road conditions. It is not necessarily very easy to establish all of these. In Figure 18 there is clearly a pattern which is seasonally dependent and which offers a basis for comparison of one period with another in a previous year. Figure 19 shows a half-hour electricity demand profile for a factory producing domestic consumables. There are clear features in the profile on weekdays, which are repeated each day without much variation. This kind of information is now available routinely at the whole-site level for large numbers of industrial sites, and there is justification in extending it selectively to the sub-meter level now that the cost of metering technology has reduced. In the specific case of Figure 19, a range of questions of interest to management are raised by the profile:

What causes the differences from day to day? Why does the afternoon demand on Friday tail off early? Why is the lunchtime dip not more noticeable? What activities are being supported by the load at night and over weekends?

There is a wide range of techniques for handling this information and this is only one form of presentation of data for one week. The normal format for this information at the whole-site level is as a 48 365 array (365 days and half-hourly energy data sometimes shown pictorially as contour mapping). Without restructuring the array in any way it is possible to compare one day with another, compare one time over many days and compute averages on an hourly, daily or weekly basis. However, the data require processing to produce a chart like Figure 19.

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4.6 PROCESSES WITH NO RELATION TO OTHER VARIABLES OR TIME

Processes, which seem to have no relation to other variables or time lead to an expectation of the same value each time they are measured. There is no need to discuss the analysis of these in detail in this Guide; they are a standard case within the scope of Statistical Process Control and can be treated as an extreme case with zero slope. True examples of this type of behaviour are found from time to time in energy management. They are usually due to machinery that is running uncontrolled and therefore left running when not needed a source of immense waste. On-off controls and simple alarms are usually cheaper than fitting meters and collecting data.

Example In a textile spinning mill, measurement of the electricity consumption of vacuum pumps, used to remove stray fibre from the machines, was found not to vary at all. Timers to shut down pumps reduced running hours of 20 kW motors from 90 to 55 hours a week, reducing annual consumption by 35,000 kWh worth 1,580 a year.

4.7 MONITORING DATA AS AN INDICATOR OF EFFICIENCY

Monitoring data is both a useful indicator of the efficiency of processes and a means to gauge the scale of potential savings.

Figure 19: The half-hour electricity demand profile of a factory making domestic consumables. (source: ETSU)

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4.7.1

NON-PRODUCTIVE AND ACTIVITY-UNRELATED ENERGY CONSUMPTION

In Figure 1 the best fit to the data is: Energy (1.185 production) 71.5 and the average production is 107 te a day. So proportion of non-productive energy 71:5 71:5 1:185107 0:360 367 This is a key element of the Avoidable Waste style of approach. Example A glass melting furnace comprises a refractory-lined insulated tank of molten glass which is kept constantly topped up with raw material as molten glass is pulled from one end, and a system of large tower regenerators for recovering heat from the hot exhaust gases. In this furnace, the ducts between the glass furnace and the regenerators were found to be contributors to non-productive heat loss. Insulating the ducts reduced heat loss by 1.3 MWh/week.

The intercept on a chart of energy vs. production, i.e. the point where the line is extrapolated back to zero production, represents energy, which the process uses even though it produces nothing. It is a fair question to ask how much of this is necessary. The same applies to nighttime electricity loads in factories that do not operate at night. The first step is to quantify non-productive energy. On a chart of the form: Energy (m production) c the non-productive energy is the intercept divided by the total for average production: proportion of non-productive energy c 1007 m average production

Figure 20: Combustion air fan power compared to gas consumption for a steel reheat furnace showing the high production-unrelated demand of a fixed-speed drive. (source: ETSU)

31

Figure 20 shows an example of electricity use in a combustion air fan. Extrapolation of electricity consumption shows a production-unrelated demand of 300 kW. This is because, although this is a variable load application, the motor attached to the fan is a fixed-speed motor in which variable air flow was achieved by throttling using a damper. Installing variable-speed control on the motor matches the speed to the load and, in this case, achieved a reduction in standing consumption of 100 kW. In Figure 20 the total electricity consumption for the week was 227 850 kWh. The night caseload on weekdays was 450 kW and 200 kW over the weekend. It is unreasonable to assume that the whole baseload can be eliminated, but it is fair to ask what is the difference in activity that accounts for the difference in baseload and why it takes so long to run down on Saturday.

This temperature varies a little but variations between 5oC and 30oC are small compared to the 600oC rise to melt it. The output is molten alloy for gravity die casting, which requires a melt at a consistent temperature for its pouring and solidification characteristics; so, the input temperature, output temperature and composition of the metal are always the same. In some industrial processes there is a need to include other energy inputs. In bricks, glass, chemicals and some other processes there are chemical reactions to take into account. These are usually described in specialist texts on the industry. (Full data on nearly all reactions of common interest are also given in Kubaschewski, Alcock and Spencer's Materials Thermochemistry.) In processes which involve heat recovery, the efficiency 'e' may be greater than 1 and provides a measure of the amount of heat being recycled. The same evaluation procedure can be applied to evaporation and distillation processes. This includes all processes that start with a liquid and involve vaporization, e.g. drying. Two particular considerations are that:
.

4.7.2

PRODUCTION-RELATED EFFICIENCY

A straight line energy vs. production chart means the energy required to process one additional unit weight of material is the same over the whole range of output. This can be used to estimate the efficiency of the process. Straight lines with low scatter are encountered frequently because, for most industrial processes, the particular transformation from raw material to product is very much the same for every kilogram or tonne of material passing through, and the efficiency with which this is achieved is the same irrespective of the rate of throughput. The slope of such a straight-line chart can be used to calculate the process efficiency (as shown in the box). The shaft furnace in Figure 11 is used for melting aluminium alloys. The metal that enters the furnace is always aluminium at about ambient temperature.

the specific heat capacity of a vapour (or gas) depends on its pressure; evaporation processes are often engineered to recycle heat, over a number of effects, or to use mechanical vapour or thermo-recompression.

Two of the most important vaporisation processes occur in boilers and drying, both of which involve vaporisation of water. Boiler efficiency can be evaluated from a graph of steam output vs. boiler fuel. This is an adjunct to monitoring the efficiency from tests on the boiler flue composition and temperature, and not a substitute. The energyrelated properties of water vapour are given steam

32

tables. Steam tables are widely published in textbooks on mechanical engineering and some energy management reference works. A summary steam table is available in How to save Energy and Money in Steam Systems guide of this series.
.

4.7.3

BUILDING HEATING EFFICIENCY

.

The slope of the line of energy vs. degree days is also an important indicator. It is possible to show, although the detail is beyond the scope of this guide, that the scope m of a line of energy vs. degree days is equivalent to: m Where:
.

as the indicator of the weather on the xaxis represent the difference between the building internal temperature and the outside temperature expressed as degree days. UA means multiply the area, A. and the U-value, U, of each element of the outer fabric of the building walls, roof, windows, etc. in turn and add up all the results. N V Cp p means multiply the volume, V, number of air changes, N, and the heat capacity of air, Cp, for each element of the volume of the building by the density of air, p, and add up all the results.

FUA NVCpp e

e is the marginal efficiency of conversion of the energy recorded on the y-axis to heat (marginal means that standing losses are discounted in the case of fuel-fired systems this essentially means the combustion efficiency); for steam heating it acknowledges the residual heat in condensate. F is a dimensionless number known as the degree day correspondence factor. It is a measure of how far the degree days used

The U-value is a measure of the thermal conductivity of a structure. It can be looked up in standard reference sources for all common fabric types for a first estimate, the values in the table below can be used. The slope is measurable from the chart, e is measurable from the standard combustion tests on boilers (which should be measured routinely, anyway), A and V are measurable or estimable from the dimensions of the building and Cp p has the value 0.33 kWh/m3/ hour/oC or 0.00792 kwh/m3/hour/degree day. The commonly used units of U-values W/m2/oC can be converted to kWh/m2/degree day by multiplying by 0.024.

Table 1: U-values for common structures in an industrial building (source: Textiles industry) U-values W/m / C Single-glazed windows Roof skylights Solid brick unplastered Brick cavity (brick unlined) Well-insulated wall Pitched tiled roof plaster-board ceiling Roof with fibreglass lining 4.6 6.6 3.3 1.4 0.5 1.5 0.4
2 o

KWh/m2/degree day 0.11 0.16 0.08 0.03 0.01 0.04 0.01

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The degree days used by most industrial energy managers are those published for regional observing stations using a formula which measures how long in parts of a day and by how much, in oC, the outside temperature is below a fixed base temperature. For buildings that are intermittently heated it over-estimates the heat requirements. How much less energy is required by an intermittently heated building depends on the number of hours a day it is heated and what is called its heating inertia how fast its internal temperature falls in oC/hour for a given temperature difference between inside and out; the faster the temperature falls, the lower the inertia. Figure 15 provides a chart for finding a value for F (degree day correspondence factor) as a function of the number of hours of heating, and a value for the heating inertia. (F 1 for a continuously heated building). If required, the inertia can be measured

using a thermograph, but as long as the working day is more than eight hours, F is not very sensitive to the inertia and can be estimated:
.

A building with a heavy structure, many internal barriers to air movement and considerable internal mass (product in a warehouse) has a nigh inertia, i.e. a low value approaching 0oC/hour/oC. Therefore, find the value of F on the left-hand axis for the requisite heating hours per day. A light building with few barriers to air movement, perhaps some mechanical ventilation and little internal mass would have a low inertia, i.e. a higher value, say around 0.3oC/hour/oC; for this the value of F is read on the right-hand axis. In the fortunate position of knowing the value of the heating inertia, the appropriate value of F can be found from Figure 21.

Figure 21: Degree day correspondence factor isopleths for the appraisal of the heat balance of intermittently heated buildings. (source: ETSU)

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In practice, the most difficult factor to estimate in industrial buildings is the number of air changes (N). It is usual to simplify the calculation by assuming a common air exchange rate over the entire building volume. In principle, everything is now known except N, and the formula becomes a method or estimating the ventilation rate, which is commonly the highest component of building heat loss and, after stratification, is the most cost-effective element of significant heat loss to correct in industrial buildings. Then: Area of wall (inc. windows) Heat loss from windows Heat loss from walls Heat loss from roof So: UA

Example The slope of energy vs. degree days for the building has a slope of 6.5 GJ/degree day (1.807 kwh/degree day). The building is 200 feet long, 120 feet wide and 60 feet high and windows represent 40% of the wall area. One foot is 0.3048 m. U-values are estimated as 0.024 kwh/m2/degree day for the walls, 0.11 for the windows and 0.03 for the roof. The boiler efficiency is known to be 7500. The building is heated continuously, therefore F 1.

(2 200 60) (2 120 60) 38,400ft2 38,400 (0.3048)2 3,567m2 0.4 3.567 0.11 156.9 kWh/degree day 0.6 3,567 0.024 51.4 kWh/degree day 2 66.9 kWh/degree day 03048 (200 120) 0.03 275.2 40,776 m3

156.9 51.4 66.9 0 30483 (200 120 60)

Volume, V

From the straight-line equation: 275:2 40:776 0:00792 N 1:807 slope 0:75 Therefore: 1:807 0:75 275:2 3.34 air changes peer hour N 40:776 0:00792 From this it can be seen what proportion of the total observed weather-related energy use is lost by different components of the building fabric and operation: Boiler 25% Walls (51.4/1,807) 100 3% Windows (156.9/1.807) 100 9% Roof (66.9/1.807) 100 4% Ventilation (40,776 0.00792 3.34/1,807) 100 59% 100% Clearly, ventilation in this building is overwhelmingly the largest energy user, and any measures applied to the building fabric would have minimal impact. This is not unusual in industrial buildings and a great deal of wasted energy is due to overzealous and poorly balanced mechanical ventilation. This technique provides a means to assess the impact.

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5. USING INFORMATION ON ENERGY USE FOR MANAGEMENT CONTROL

5.1 INTRODUCTION
The normal way of using information as a basis for on-going management control is to: . establish a performance standard, based on what has been achieved historically, sometimes modified to give same 'incentive' and expressed in simple terms; . calculate the difference between actual performance and this standard; . respond to instances of unusually large differences; . reduce these differences over time. In energy M & T historic performance is used for establishing performance standards: however, statistical methods, and an understanding of the physical laws that underlie energy consumption, are applied to make these performance standards robust. The success of this approach depends on being able to recognise when the difference between actual consumption and the standard in any one period is exceptional. This in turn means being able to accommodate all the factors into the calculation, which cause these differences but are not controllable. The smallest difference that identifies a deviation from the standard as a significant exception is called the resolution of the management system. The resolution can be improved by being able to select, from the historic information, the data for the particular periods days, weeks, months that provide the best standard.

A particularly powerful method for achieving this is a combination of a technique called CUSUM and a device taken from quality management called the control chart. These techniques will be illustrated using the data in Figure 22, taken from a factory that produces a fried-food product. Before applying CUSUM, consider the other information already apparent in the data. The data for this process appear to split naturally into two groups, following parallel lines a short distance apart. The one of greatest potential interest is the lower one, as this appears to represent higher energy efficiency. A best-fit line drawn by eye is: energy ('000 therms) 0.26 production (te) 100

5.1.1

NON-PRODUCTIVE CONSUMPTION

At the commonest output of around 900 te/ month, this indicates that production-unrelated energy is: 100 1007 307 100 0:26 900

5.1.2

PRODUCTION-RELATED EFFICIENCY

36

This example is for a fried product in which the process heats the raw material to the frying temperature of 250oC, evaporates the water that

Figure 22: Fuel vs. production for a cooker/fryer in the food industry. (source: ETSU)

makes up 80% of the mass of the raw material and replaces this with cooking oil that makes up 40% of the product. Each te of product therefore contains 0.6 te of raw material, the production of which involves evaporation of four times as much mass of water (80%:20% ratio), i.e. 2.4 te of water and, in an ideal process, the heating of only 0 4 te of oil. The energy required to evaporate water from liquid at 30oC to steam not under pressure at 250oC can be looked up in standard engineering steam tables for superheated steam the value is 2.870 kJ/kg (it is important to use the right steam table). The specific heat of the cooking oil was obtainable from the supplier as 2 kJ/kg/oC. The specific heat of the other solid material is not known but it is a carbohydrate with a rigid structure and so cannot be far from that of wood or polystyrene, i.e. about 1 kJ/kg/oC. The accuracy of specific heats of solid materials in this case (and most cases involving evaporation of water) is not found to be critical and the effect of temperature

on specific heat, in this case, is negligible. One therm is 105.5 MJ. From Figure 22 we know that the slope of the line 5 260 therms/te. The production-related efficiency of the process is the theoretical energy required to process 1 te of product, divided by the actual energy used per te: Efficiency
f2:870 2:400 2 400 1 600 240 30g 260 105:5 1:000

1007 267

This is poor efficiency performance for this kind of process.

5.2 CUSUM TECHNIQUE

CUSUM stands for the CUmulative SUM of differences and is a technique for measuring bias in equal interval time series data, i.e. information

37

of the same kind gathered at the same time each day, week, month etc., and organised in the same time order as it was measured (which is the way most of most industry collects information anyway). The differences added are those between the actual energy used and the energy predicted by the best-fit line on the chart of energy vs. production. In the example of the cooker/fryer, for any given production rate there is a wide range of energy consumption in the data. At around 900 te/month, energy consumption seems to vary between about 290,000 and 400,000 therms/month a variation of /-16%. If this is the normal variation in these data, then this is about the limit of resolution of any system based on it. In fact, it is not representative of the true week-to-week variation at least some of this apparent scatter is due to the way the process has changed over time. CUSUM is a technique that can take account of this. Table 2: CUSUM data for cooker/fryer Production (Tons) Feb 1992 March April May June July Aug The resulting chart is shown in Figure 23. If the entire scatter on the CUSUM chart were only random about the best-fit line, the compiled differences would also be randomly positive and negative. The resultant accumulation of these differences, CUSUM, would also be random and not far from zero. CUSUM would then track horizontally on this chart. 896 1,054 678 781

The prediction formula calculated previously was: energy ('000 therms) (0.26 production in te) 100 Calculating CUSUM from this involves four steps: 1. Use this formula to obtain a predicted energy use for each week from the production for that week. 2. Subtract the predicted consumption from the actual to obtain a difference for each week. 3. Add up the differences from the first week to each week in turn to obtain CUSUM. 4. Plot a graph of CUSUM against time. The first three of these steps are usually carried out in adjacent columns of a spreadsheet (or database if proprietary software is used). This result is shown calculated in the table below.

Actual gas Predicted gas ('000 therms) ('000 therms) 334 371 288 332 332.96 374.04 176.28 303.06

Difference 1.04 3.04 11.72 28.94

CUSUM 1.04 2.00 9.72 38.66

If something happens which changes the pattern of consumption moves to a pattern for which the constants in the best fit relation are different from those in the prediction then the differences will not be random: they will be biased positive or negative and CUSUM will track up or down from the time of that event. The CUSUM chart therefore consists of a series of straight sections separated by kinks, each kink representing a change in pattern. Lengths

38

Figure 23: The CUSUM graph for the cooker/fryer. (source: ETSU)

of the CUSUM chart, which run parallel to one another, indicate the same process behaviour pattern being followed. The CUSUM graph, Figure 23, identifies two clear patterns: 1. When the line runs horizontal which is: . up to April 1997; . from August to November 1997; . from September10 December 1998. 2. When the line runs upward which is: . from May to July 1992; . from December 1992 to August 1998; . from January 1999 onwards. Discussing the CUSUM chart with various managers in the factory brings out an explanation for the two patterns. A few years previously the cooker had been fitted with a heat recovery system, partly on economic grounds and partly to reduce the visible plume of steam over the factory

from the evaporated water. The rising trend in the CUSUM chart could be attributed to a reduction in the performance of the neat recovery equipment. An energy consultant had in fact, picked up this poor performance of the heat recovery equipment during an energy survey in early 1993 when the system was cleaned on his recommendation. The upward trend in early 1994 occurred because management did not realise that the deterioration in the performance of the heat recovery system was not a one-off problem repeated cleaning at intervals would be necessary to maintain the higher performance.

5.2.1

THE CONTROL CHART

39

The control chart is already a familiar concept in organisations that use any form of statistically based quality control.

To calculate a control chart:

.

system working properly. Regression produces a best-fit line to these data of: energy ('000 therms/month) (0.28 production (te)) 84 and a correlation coefficient of 0.96. The correlation coefficient for all of the data was 0.8. The correlation coefficient, easily calculable on a computer spreadsheet, is a good indicator of the improvement in data used to predict energy use on the control chart. The control band needs to be sufficiently narrow to indicate to the process operators that there is supervision of the process, but wide enough not to alert too many exceptions and thereby produce no response. Band width can be decided by simple reasoned judgement, although there are also formal statistical methods available for deciding

recalculate the best fit formula for all the data identified from the CUSUM chart as belonging to a workable standard and, if possible, over a recent period; calculate a new control prediction from this pattern for the actual production in each month; calculate the difference between the actual consumption and the control prediction: plot these differences against time as shown in Fig 24: decide on a control and such that, if the energy use goes outside this level, someone is required to account for it.

The horizontal periods on the CUSUM graph represent the periods with the heat recovery

Figure 24: The control chart for the cooker/fryer. (source: ETSU)

40

this. In this case there are, as yet, too few data to decide this statistically. By eye, 25.000 therms/ month is enough to detect deterioration in the heat recovery system. At the 336,000 therms that correspond to the average production of 900 te/ month, the resolution is 7%. Weekly data and more sophisticated analysis can improve this. Nonetheless, it is a good start it picks up the most immediate threat to performance. There are various styles of application for this simple principle:
.

notice boards or circulated through an electronic notice board or computer system.

5.2.2

NON-PARAMETRIC FORMS OF CUSUM AND CONTROL CHART

The control band can be based on absolute differences (in energy units) or as a percentage; in either case the differences are calculated on the same oasis (if percentage control levels are being used. calculate the differences as percentages too). Data can be provided to the responsible departments in the factory in several ways: o as charts which display the immediate last period and previous periods; o as reports which indicate only the data for the immediate previous week or shift: o as look-up tables which enable the user of the information to deduce that energy consumption is outside acceptable levels. At factory level, the calculation of the forecast consumption, difference and control limit for the immediate past interval can be added to a spreadsheet and used as the basis for discussion at production control and planning meetings.

The form of CUSUM described is called the parametric form because it examines specifically how the relationship between variables or parameters changes over time. Although it has been a familiar feature of energy management for some years and is a common feature of dedicated M&T computer software, it is not well known in other management disciplines. The form of CUSUM, which is familiar to quality managers, is the univariant, which applies to parameters that are not expected to vary over time. Parameters, which follow recurring patterns over time, require a different variant of CUSUM the recurrent form. In this, all the steps are the same except in making the prediction. In recurrent CUSUM the prediction is cased on calculating the average values of each time interval in the cycle, e.g. for daily intervals in a weekly cycle, the average for all the Mondays, all the Tuesdays, etc. The remaining steps, along with the interpretation of the CUSUM chart and setting up of the control chart remain the same. This form of CUSUM is a recent innovation and is also not necessarily familiar to energy managers.

5.2.3

APPLICATION OF CUSUM

The control chart can be used practically to raise awareness in various ways. One way is to circulate a paper copy of the chart to relevant staff, but this means circulating an entire sheet of paper to highlight only the last point on the chart. Control charts are often useful when displayed on company

CUSUM analysis and control charts can be applied to a wide range of process and production parameters, including: . ovens, kilns and furnaces fuel consumption, mass of material processed, running hours, temperature in and temperature cut;

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. .

melting furnaces material melted, energy input, coke additions, oxygen supplied, electrode wear, recycled material, new materials added, alloying and other additives; ovens and cookers fuel consumption, product weight, mass of water evaporated, process running hours; electrolytic and electroplating processes electricity consumption, voltage, material deposited; rolling machinery, mixers, pulverisers electricity consumption, mass of material worked work done; cutting machinery electricity consumption; pumps electricity consumption. volume delivered; fans electricity consumption. volume delivered (often as some other variable such as furnace throughput), fuel consumption;

air compressors electricity consumption, air delivered, leak rate; refrigeration electricity consumption, evaporator load, heating and cooling, degree days; inert gases gas usage, production, boilers fuel consumption and steam generated: building space heating fuel consumption, degree days; vehicle fuel tonne miles, kilometres per litre, journey times.

Such is the ease of calculation of control charts that it should be feasible to maintain them on all of these parameters, even if all the information is not routinely circulated.

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6. FACTORY SERVICES

This chapter gives an outline of energy saving opportunities for the following services: motors and drives, compressed air, refrigeration and chilled cooling water.

6.1 MOTORS AND DRIVES

(This topic is dealt with in more detail in the booklet How to save energy and money in electricity use.) Motor and drive systems usually consume the majority of the electrical energy at industrial sites, on average 65% of the total. Typically, there will be a large number of comparatively small units scattered throughout the complex. This makes the assessment of the performance and energy consumption of these units somewhat time consuming. However the cost saving potential means that the effort should be worthwhile. Energy saving opportunities can be broadly categorized as follows:
.

The primary factors affecting the efficiency of a well maintained electrical motor are its loading and the efficiency of the design of the motor when supplied. The efficiency of a motor declines as the load falls; it will operate most efficiently between 75% and full load. To assess the loading of an electric motor it is necessary to have some measure of the power being consumed. Full load power consumption can normally be found on the motor nameplate. This is a maximum; most motors run at around 65% of full load. Motor efficiencies at various loads can be taken from the manufacturer's data sheets. Where significant load or speed variations occur, it is necessary to determine the motor duty cycle. This is best achieved by continuous monitoring of power consumed, but can also be obtained from selective spot measurements, providing the operating cycle of the unit is known. The measurement of motor power consumption should, when used in conjunction with any site kWh meters; allow the calculation of a comprehensive audit of the energy consumption of site drive systems. Where a motor is driving a fan or pump, which is required to deliver a varying flow, the use of a VSD can save up to 80% of the power consumed compared with using mechanical flow.

Practice good housekeeping, i.e. switch off motors when not needed. Ensure motor efficiency, i.e. select a correctly sized motor. For long running hours high efficiency motors should be used. Use variable speed drives (VSDs) where appropriate. These can provide significant savings opportunities where fan or pump loads vary.

6.1.1
.

CHECK LIST
Ensure that a high standard of maintenance is undertaken on all drive systems. Ensure that motors are not left idling for long periods make use of load sensors.

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Check that the motor is not excessively oversized. When motors are operating for long periods at less than full loads consider the use of motor (voltage) controllers, or continuous running on a star connection. In variable load systems the possible application of variable speed motors and drives should be considered, in particular for fans and pumps. Consider the use of high efficiency motors for units running at high loads for long periods.

remaining energy consumption will be related to usage, measured by production rate or site activity. It is usually possible to save 10-20% of the energy running costs of a compressed air system with little capital outlay.

6.2.1
.

CHECK LIST
Rationalise the system by removing or isolating dead legs and minimizing pressure drops. Ensure the plant is well maintained in line with the maker's recommendations. Minimise the air leakage rate. A planned maintenance programme to cover the air distribution system is useful. Make sure that the intake air is cool and clean. Use outside air for compression where possible. Generate compressed air at the lowest possible pressure that will meet site requirements. Ensure that the design of the compressed air distribution systems does not produce an excessive pressure drop between generation plant and end user. Recover the heat of compression where possible. Ensure that the control systems installed result in efficient operation. Investigate the possibility of sequencing multi-unit plant. Keep air quality to the minimum possible. If only one air user in the system requires high quality air, consider treatment of that air at the point of use.

6.2 COMPRESSED AIR

(This topic is dealt with in more detail in the booklet Saving Energy and Money in Compressed Air Systems). Compressed air is used extensively in industry, but it is an expensive service and efficient utilization is important. There is a tendency to believe that compressed air is cheap, though only about 5% of the energy consumed by compressing air is actually available for work at the point of use. Compressor energy consumption is best obtained from a kWh meter, but it can also be derived from hours run and ammeters, where installed. Most compressor systems are volume controlled so it is important to remember that plant tends to operate for long periods at less than full load. The performance of a compressed air system is heavily dependent on the level of air leakage. This can be assessed by measuring the energy consumption of the plant during periods when there is no demand for air, typically at weekends of during shift changes. The rate of energy consumption during these periods is the base load of the system and can only be reduced by limiting air leakage, or installing more efficient compressor plant. The
.

6.3 REFRIGERATION
(This topic is dealt with in more detail in the booklet Saving Energy and Money in Refrigeration).

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Refrigeration systems are used widely in industry. However for the non-specialist it can be somewhat complex to evaluate their performance. It is therefore not unusual for plant to be operating at less than optimum efficiency. For an accurate assessment of refrigeration performance it is important that sufficient monitoring equipment is installed on the plant. Refrigeration efficiency is usually expressed as the coefficient of performance (COP), defined as: COP Cooling effect kW Power input to compressor kW

. .

. .

Maintain isolation standards where appropriate. Keep operating hours to a minimum. Ensure that the cooling load is kept to a minimum. Avoid operating refrigeration plant under part-load conditions. Investigate the possibility of improving control functions. Utilise waste heat where possible. Where appropriate, retrofit plant with more energy efficient components. Review energy efficiency when replacing CFC with ozone benign refrigerants.

For real systems the power input should include the compressor and all other auxiliary equipment, such as pumps, fans, lights, etc. Once the system performance has been established it is useful to identify the contribution of each plant component to the total system power input. Suitable electricity submeters can be installed for this purpose. The main contributors are normally: . compressors (typically 65%); . condenser pumps (typically 5%); . condenser fans (typically 10%); . evaporator pumps (typically 15%); . lights (typically 5%). The next stage is to divide the total cooling load amongst the various process requirements. This should allow the loads that significantly affect costs to be highlighted.#260

6.3.2
. .

REFRIGERATION COLD STORES

Minimise defrost cycles. Use thermal inertia to reduce running costs by operating at full load during low rate electricity periods at night and at weekends. Check thermostat settings. Fit automatic closure devices to doors and minimize door opening times. Improve thermal insulation.

. .

6.4

CHILLED AND COOLING WATER

6.3.1
.

CHECK LISTS
Ensure that these is good and regular maintenance of all equipment. Avoid blockage of air flow through and around heat exchanges (e.g. evaporators and condensers). Make sure that fouling of primary and secondary refrigeration circuits is kept to a minimum.

Centralised chilled water services consume large amounts of energy in their refrigeration plants, dealt with in Section 4.3 of this booklet. The distribution system itself will contain circulating pumps consuming electrical energy. This would normally be assessed using ammeter readings, in conjunction with information on the overall running time of the installation. The overall energy consumption should be directly related to cooling demand. However, cooling

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systems have a large fixed element to their energy usage. As with other plant, it is important to ensure plant is turned off when no cooling is required. For variable loads, the use of variable speed drives (VSDs) should be considered.

. .

Ensure system does not run unnecessarily. Insulate the distribution system to a high standard.

6.4.1

CHECK LISTS

CHILLED WATER . Ensure that there are no leaks from the system. . Ensure that the temperature of the chilled water is optimised, i.e. not too low. . Isolate equipment when not in use. . Control pump operation effectively avoid throttling with valves by using VSDs.

COOLING WATER . Ensure there are no water leaks. . Always use closed circuit systems. . Use thermostats to control cooling tower fans. . Check that the system is not oversized. . Control pump operation effectively avoid throttling with valves by using VSDs. . Ensure system does not run unnecessarily

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7. INDUSTRIAL HEATING PROCESS

(This topic is dealt with in more detail in the booklet Saving Energy and Money in Boilers and Furnaces). An important class of energy consuming activities includes the production and distribution of heat. Boilers and furnaces are discussed in this chapter.

Heat transferred to heating medium: usually steam or water 1007 Fuel input The heat transferred to the heating medium cannot normally be determined directly, though indirect measurements, such as fluid temperatures, pressure and volume flow rates can be used. Electronic combustion analysers can be used to check efficiencies and monitor trends, particularly before and after maintenance. In addition it is always worth undertaking a more comprehensive boilerhouse audit, to highlight heat losses and take into account subsidiary energy usage. The biggest part of this exercise is to assess the portion of the primary fuel energy lost in the boilerhouse. The main heat losses for a typical installation, in order of importance, are:
.

7.1 BOILERS AND BOILERHOUSE MANAGEMENT

The boilerhouse is very often the largest single user of energy on a site, and it is important that its performance is under constant review. There should be a comprehensive boilerhouse logging programme in place, which includes the monitoring of the following parameters:
. . . . .

fuel consumption; heat output; flue gas conditions; make-up water consumption; subsidiary electricity consumption.

. . . .

flue gas losses; heat losses from boilerhouse heat distribution system; blowdown losses; heat losses from boiler shell; ash losses (coal-fired plant); fuel heating (oil-fired plant).

The frequency of checks will depend on the plant and manpower availability, but weekly or preferably daily checks should be made. An important measure of the performance of a boiler plant is the specific boiler efficiency. This is the ratio between useful heat production and energy consumed, i.e.:

Methods, which can be used to assess these losses, are detailed in Saving Energy and Money booklets, which cover, amongst other things, the economic use of oil-fired, gas-fired and coal-fired boiler plant respectively.

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A significant amount of electrical energy is used in the typical boilerhouse for circulating pumps, combustion fans, etc. Where a dedicated kWh meter is installed for the boilerhouse this should be read regularly, though an estimate of electricity consumption can be determined from motor duties and running hours if necessary. Make-up water consumption should be monitored to give early warning of system leaks. Recovery of uncontaminated condensate on steam systems should be maximized, saving on energy, water and chemicals. Where there are significant year round requirements for process heating, typically in excess of 5 000 hours/annum, the feasibility of combined heat and power (CHP) should be investigated.

7.2

HIGH TEMPERATURE PROCESSES

High temperature process plant, such as furnaces and kilns, are used in a variety of industries. There is a wide range of plant used, and it may be of a continuous or batch nature. However, the basis under which an energy audit is undertaken on all high temperature processes is very similar. As with boilers, a specific efficiency for the process plant can be calculated but it is more usual to use the specific energy consumption: Specific energy consumption Energy consumption Product throughput This gives a good measure of the relative plant performance, and requires only good production records and energy consumption figures to be kept. In addition the data can be used to compare energy consumption at different production rates, as in figures 7 and 8 in Section 3.3 on Monitoring and Targeting. In a well controlled plant there should be a good correlation between energy consumption and production rate. The more scatter on the graphical plot the worse the process control. The offset on the graph, i.e. the energy consumption at zero production, represents the level of standing losses. These are typically made up of: . flue gas losses (except on electrically operated plant); . structural heat losses; . heat loss by radiation from openings; . loss of furnace gases at openings; . heat loss to conveyers, rollers, etc; . heat loss to charging equipment and mechanisms; . heat removed by cooling circuits.

7.1.1
. . . .

CHECK LIST
Maintain efficient combustion. Maintain good water treatment. Repair water and steam leaks. Recover heat from flue gas and boiler blowdown whenever possible. Ensure good operational control and consider sequence control for multi-plant installations. Attempt to match boilers to heat demand. Valve off idle boilers to reduce radiation losses. Use flue dampers where appropriate to minimize flue losses when plant not firing. Ensure that boilers and heat distribution systems are adequately insulated. Blowdown steam boilers only when necessary. Ensure as much condensate as practicable is recovered from steam systems. Insulate oil tanks and keep steam or electric heating to the minimum required.

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It is worth measuring or calculating the level of these heat losses to identify areas for potential improvement.

7.2.1
.

CHECK LIST
Minimise heat losses from openings, such as doors, on sealed units. Use high efficiency insulating materials to reduce losses from the plant fabric. Attempt to recover as much heat as possible from flue gases. The pre-heating of combustion air or stock or its use in other services such as space heating are well worth considering. Reduce stock residence time to a minimum to eliminate unnecessary holding periods. Ensure efficient combustion of fuels where applicable. Avoid excessive pressure in controlled atmosphere units. If maintaining stock at high temperature for long periods, consider the use of specialized holding furnaces. Make sure excessive cooling of furnace equipment is not occurring. Ensure the minimum amount of stock supporting equipment is used. Ensure there is effective control over furnace operating parameters computerized control should be considered for larger units.

cascaded through the process, which results in large quantities of low grade waste heat. Process integration and heat recovery are important ways of improving energy efficiency. Many industries require significant year round process heating, so combined heat and power (CHP) could be applied cost effectively. There is a large variety of low temperature processes undertaken in industry. The methods of evaluating performance and energy consumption of these processes is similar to those used on high temperature processes.

7.3.1
.

CHECK LIST
Minimise heat losses from liquid surfaces on heated tanks. Ensure plant and services are adequately insulated. Attempt to recover as much heat as possible from flue gases, process effluents and cooling waters. The pre-heating of combustion air or stock or use in other services such as space heating are well worth considering. Review scheduling of different processes to determine whether plant operation can be concentrated into batches. Ensure efficient combustion of fuels where applicable. Consider the use of direct firing where appropriate. Maintain good control of the process, including humidity control of dryers. Maximise liquid extraction by mechanical means before thermal drying. Do not over-dry material. Control the use of water, especially that used for washing. Evaluate the opportunities for process integration and combined heat and power.

7.3 LOW TEMPERATURE PROCESSES

The low temperature process industries can be defined as those involving heat usage at generally less than 400 500oC. The processes often include chemical reactions or manipulation of materials and mixtures in water or organic solvents. Steam is a common energy transfer medium and heat is often

. .

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8. BUILDING SERVICES

Space heating, domestic hot water and lighting loads generally represent a significant energy consuming requirement for many organizations As a general guide, Figure 9 indicates how energy is used for building services in a typical factory

Temperature profiles can be obtained using chart recorders or data loggers (which can be hired) to identify incorrect space temperatures or operating periods and poor controls. It is important to identify the areas of building fabric responsible for the greatest heat loss and where cost effective insulation can be installed. Insulation is often best installed when work is being carried out on the building fabric, e.g. roof repair/ replacement, or during building refurbishment, since the additional cost will be relatively small.

8.1 SPACE HEATING

The energy use for space heating can generally be assessed in a number of ways. In many cases it is possible to examine the records of fuel used for heating for the previous 12 months and plot bar charts of total consumption against each month. Energy management for space heating is concerned with four main aspects:
. . .

8.1.1
. .

CHECK LIST
Minimise plant standing losses. Ensure regular maintenance of central boiler plant. Check thermostats set correctly. Fit time controls to eliminate unnecessary heating. Install optimum start control to reduce preheating times. Install zone controls for areas with differing times of use or temperature requirements. Consider a Building Energy Management System. Install destratification fans in high buildings to reduce temperature gradients. Install automatic/fast acting doors for goods/vehicle entrances. Investigate heat recovery possibilities.

. .

operating plant at optimum efficiency; avoiding overheating; minimising heat losses or gains through the building fabric by insulation; minimising heat losses through ingression of cold air particularly at loading bays and large doors.

The minimum controls required are time switches, though on larger sites a Building Energy Management System (BEMS) is recommended. The system selected should be assessed in the light of current requirements and also comply with Building Regulations. Process or building occupancy may have changed and point-of-use equipment and/or fuel switching may offer substantial savings.

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8.2 AIR CONDITIONING AND VENTILATION

Air conditioning is increasingly used in high technology buildings with large solar gains and internal heat gains from occupants, information technology and other electrical equipment. Similar principles apply as for space heating, except that heat is gained through the fabric of the building and cooled air is lost from the building. Controls are generally more sophisticated and it is essential to check operation of the system carefully, to ensure the building is cooled only when necessary and to utilize free cooling when ambient temperatures are below the building temperature. This can be done through recording temperatures with a data logger or checking operating controls and setpoints where a Building Energy Management System (BEMS) is used.

efficiency of generation. Savings in volume could be achieved through restrictors or automatic cutoffs and avoidance of leaks or taps left running. If standing losses are high, for example in a large distribution system with low DHW usage, it may be cost effective to install point of use heaters. The largest non-production related use of water in buildings is generally from water cisterns. These usually work by having a small but continuous flow of water into a small cistern, which empties periodically to flush urinals. The main area for water savings is through reducing automatic flushes for urinals using proprietary devices either in operating on pressure drop or occupancy detection. There are other water saving devices available and the cost effectiveness depends on the application. These include tap restrictors and shower controls. Control of leaks is an important factor for buildings on a metered supply and this can be checked through monitoring the meter during unoccupied periods.

8.2.1
.

CHECK LIST
Reduce the air volume handled wherever possible. Set the room sensor cooling temperature to 22oC or higher. Provide controls to prevent simultaneous use of heating and cooling circuits in air handling units. Ensure the system uses free cooling effect of outside air when possible. Regularly check control settings and operate in accordance with occupancy requirements.

8.3.1
.

CHECK LIST
Insulate hot water storage tanks and pipework. Check hot water thermostat settings are correct: 60oC is recommended to prevent Legionella growth. Use point-of-use water heaters in summer or decentralize from main boiler plant if standing losses are high. Install spray taps or flow restrictors.

8.3 HOT WATER AND WATER SUPPLY

The most important factors to consider with hot water supplies are the volume used and the

8.4

LIGHTING

Lighting is perhaps the most noticeable source of energy waste in many organizations and there are indeed many opportunities for reducing lighting

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energy costs, ranging from simple manual switching to upgrading of luminaries to more efficient types. Fully automated lighting control systems are also available. Staff can play an important part in controlling lighting use and this is to be encouraged as part of an organisation's environmental image. There is a wide range of lamp type, with considerable variations in luminous efficacy (i.e. light output per unit of energy consumption) between different types. In general it is important to select lamps with the highest efficacy, though the quality of lighting provided (most importantly, the colour) also needs to be borne in mind. Table 5 gives examples of some of the most common lamp types and sizes. Lighting consumption can be estimated by multiplying the installed load in kW by the hours in use, to give the consumption in kWh. The load can be determined be estimating the number of fittings

and identifying their rating. A performance index of between 10 and 20 W/m2 is typical for fluorescent lighting when the load is related to floor area served. It is important to relate lighting levels and lamp types to the requirements in different areas.

8.4.1 CHECK LIST

. .

Switch off unnecessary lights. Install automatic lighting controls time, daylight or occupancy detection. Use slimline energy efficiency fluorescent tubes in switch-start fittings. Replace twin fluorescent with single tube and high efficiency reflectors. Convert to more efficient installation where appropriate e.g. fluorescent or discharge lamps.

Table 5: Typical load and output of various lamps Lamp type GLS Tungsten Compact Fluorescent Lamp Mercury Vapour 38mm Fluorescent Tube 26mm Fluorescent Tube High Pressure Sodium SON Low Pressure Sodium SOX Size 100 W 16 W 80 W 1500 mm 1500 mm 70 W 55 W Circuit load (Watt) 100 20 93 78 71 81 68 Output (Lumens) 1200 700 3800 4900 4900 5500 7300 Efficacy (Lumens/watt) 12 35 41 63 69 68 107

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9. CAPITAL EXPENDITURE

During the course of the audit energy cost saving projects requiring capital expenditure are almost certain to be identified. It is important that a detailed analysis is undertaken of the financial viability of these projects, so that: . the true benefit of the project is identified. This will allow accurate decisions as to whether the project should go ahead and when. . the project can be 'sold' internally within the organization. There will always be other demands on capital.

Payback
.

Total capital cost of project Net annual saving

Discounted Cash Flow (DCF)

In this analysis the rate of savings generated by the project are calculated on a year by year basis, over the whole life of the equipment, discounted back to the present time. DCF provides more information than payback, particularly in terms of size and timing of cash flows. Your company accountant can advise you on how to carry out a discounted cash flow analysis.
.

Net return on assets

9.1 FINANCIAL CRITERIA

Different organizations will have different financial criteria for assessing the viability of capital projects. It is important that any application for capital is consistent with the system used in a particular company. The main techniques in common use are discussed in the following text.
.

The return on assets shows the potential pre-tax cost benefits of a project against the initial depreciated capital. All other initial and ongoing costs would normally be taken into account.

9.2 RAISING CAPITAL

There are a number of methods, which may be used for raising capital for projects. These are outlined below:
.

Payback

This is the simplest and most widely used criterion and can be used for an initial assessment. The payback is defined as the time period that will lapse before the accumulated savings will be sufficient to cover the initial expenditure. In its simplest form the payback is the initial cost divided by the net annual savings generated less any additional maintenance costs, i.e.:

Internally

Capital can be raised by an organization from its normal capital budgets. The economic case will have to be good for projects to win out against other demands for capital, particularly as energy saving investments are usually viewed as 'non-core' business activity. Some organizations allocate an

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annual budget to energy efficiency measures. The prioritisation of different measures should take account of the funds available, and savings achievable.
.

Contract Energy Management (CEM)

External finance

External finance could be in the form of a straightforward load, or more complicated deals where the load is paid off directly out of savings. Some companies now offer deals where a scheme is fully project managed by an outside consultancy, who are also paid a proportion of the savings generated. There is often a positive cash flow for the host company from the start of the project in this type of deal.

In this type of deal an outside company will normally take over the supply of a utility. For example a CEM company may take over a project to install new boilers or CHP at a site. The CEM company would then put up the necessary capital to purchase the equipment and take over the running of the new plant completely. They would then charge to host company a service charge and for fuel. The advantages to the host company are that they achieve lower energy costs without the need to find capital for the project and that they no longer have to run a boilerhouse facility.

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SOURCES OF FURTHER INFORMATION

For the latest news in energy efficiency technology: Energy Management News is a free newsletter issued by the ERI, which contains information on the latest developments in energy efficiency in Southern Africa and details of forthcoming energy efficiency events. Copies can be obtained from: The Energy Research Institute Department of Mechanical Engineering University of Cape Town Rondebosch 7701 Cape Town South Africa Tel No: 27 (0)21 650 3892 Fax No: 27 (0)21 686 4838 Email: eri@eng.uct.ac.za

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