Lecture Notes

S.S.Sehgal

Energy Conservation and Management
Terms:Energy Management EM: - The EM is the practical science of techniques and dynamic processes of setting/ob ecti!es "tas#s$% planning% organi&ing% arranging material/ finance/ human and other required resources% e'ecuting% super!ising monitoring% remo!ing bottlenec#s to achie!e ob ecti!es and to set ne( ob ecti!es. The energy management in!ol!es% planing% directing% and controlling the supply and consumption of energy to ma'imi&ed producti!ity and comforts and to minimi&e the energy costs and to minimi&e the pollution% (ith consensus% udicious and effecti!e use of energy. 3 steps of EM Energy )udit Energy *onser!ation Measures "E*MS$ +aste ,ecycling Steps of Energy Management:. / 1 3 4 6 7 8 Strategies. )dministrati!e actions. 0olicy 2rgani&ational charges. Training and a(areness programmes. )ssociation of (or#ing personnel5s. Energy )udit. Energy consecration measures% E!aluation of the present energy consumption.

-9 :mplementation of E*Ms. -- Monitoring of E* efforts. EC: - :t in!ol!es (astage of energy and adsorption of methods to conser!e energy% (ithout affecting producti!ity ; comforts% more energy efficient processes should be replaced by less efficient processes. Energy Conservation opportunities ECOs. These are the a!enues/ opportunities% (hich are open to implement energy conser!ation acti!ities.

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To obtain report on E* measures.ecommendation of a ne( technology.:mplement E-optimi&ed operation and maintenance practices. )ppoint or select energy )udit Team or consultants.S. . -9 :mplementation of T) report and E* measures. -. To obtain technical assistant report "T)-report$ :nstructions in T) report a$ E* measures b$ =o or =on5t c$ 2peration and maintenance instructions.esponsibilities of Energy Manager:1 3 4 6 7 8 Energy planning Energy consumption monitoring 0laning energy conser!ation :mplementing energy conser!ation measures 2rgani&ation of <. -/ .Energy management as policy and commitment . Steps involved in energy management. . -. :ntroduce suggestions% schemes and a(ard schemes. / Management commitment Selection of the Energy Manager . -1 To re!ie( and optimi&e ne( design of the plant and equipment and to allocate finds for retro fitting. >ormulation of supply strategies and energy conser!ation plans )(areness and :n!ol!ement.ecycling of scrap% (aste material% etc.= programmes )chie!e E* ob ecti!es. Establish practice of monitoring energy consumption and effecti!eness of E*M5s.Lecture Notes Energy Audit:- S.Sehgal :t is an official scientific study/ sur!ey of energy consumption of a region/ organi&ation/ process/ plant/ equipment aimed at the reduction of energy consumption and energy costs% (ithout affecting producti!ity and comforts and suggesting methods for energy conser!ation and reduction in energy costs. . d$ .

"b$ human energy "labor$ "c$ )nimal energy ote: on-Commer!ial is t"e #ood. rene(able *onsumption/ demand side :ndustrial sector )gricultural <ousehold "domestic$ . commercial Transport 2thers Supply side 0o(er sector Electrical energy management ?eneration of po(er. SCA$A% .Sehgal 0o(er sector "Electricity$ 2il or ?as *oal Non commercial .Lecture Notes Energy strategies (planning) Supply side management S.S.Supervisory !ontrol & $ata A!'uisition system / .Thermal "coal/gas% <ydro% Nuclear$ Transmission ")*% high !oltage interconnections% systems$ S*)=) @tili&ation of energy "0lant% industry% managed by S*)=) systems$ >uel "2il% natural gas% coal% fire-(ood% chemicals etc$ Non commercial/ rene(able energy "a$ Land biomass% solar% (ind% geothermal% tidal etc.

Ethanol% biodiesels% methanol $emand Side EM =omestic *ommercial )gricultural :ndustry =efence .g .S. = organi&ation 2thers 1 . Aatteries% hydrogen gas% fuel cells% synthetic fuels.g.ene(able Energy 2il . Aio-energy sector "future$ e.Sehgal ?lobal National . distribution% Nuclear po(er Non-*on!entional /. .generation% transmission% interconnection EM .Lecture Notes Energy Management EM:- S.egional State =istrict *ity Sector Supply side EM 0o(er sector. ?as *oal *hemical Energy Sector "future$ e.

=ecision of responsibilities :nterfacing bet(een the groups Organi)ation Non. produce products$ Energy :ntensi!e "(hich are using% as (ell as producing energy C products$ 3 .energy "They ust consume energy .ates >ormulate the long/ medium/ short term plan Organi)ation Stru!ture Listing of essential acti!ities ?rouping of acti!ities B (hether it is related to space heating% po(er% fuel% etc.Lecture Notes Energy (lanning for ea!" Se!tor =ata *ollection S.Sehgal E!aluation of trends =etermine the demand =etermine the resources a!ailable Strategies are formed 0lan the entire energy routes E'ploration/ E'traction/ *on!ersion 0rocessing/ by products/ *leaning Storage/ Transport/ Transmission =istribution/ Supply E!aluate the economic !iability . fi'ing of tariff/ .S.

M . )ccelerate production and supply of energy though fast-trac# energy routes e. maintenance manager (ith additional .S.g. )pply . =ocumentation Team Monitoring Team Strategies Adopted +y *ndian .Lecture Notes on.esponsibilities of EM S. . unbundling the potential in e'isting industries particularly those% (hich are generating their o(n po(er by impro!ing plant load factor "0L>$ and carrying out reno!ation and 4 .Sehgal Line Managers =elegation :nterfacing Energy *ntensive Organi)ation C"art 0lant Manager Energy *onsultants 2 . 0o(er sectors% (ith de-control% pri!ati&ation and the international help for raid gro(th.eforms to Energy .M )udit team Testing Team E* Measures Team Engg. M Manager Energy manager for E.Energy Organi)ation C"art 0lant Manager 2peration .overnment for E.

-9 . 0olicy 1.e!tives. Training and a(areness program 4.educe the energy imports and achie!e self-reliance in energy.educe or minimi&e the pollution. The energy management in!ol!es planning% directing% controlling the supply and consumption of energy to ma'imi&e the producti!ity and comforts and to minimi&e the energy costs% and to minimi&e the pollution% (ith consensus % udicious and effecti!e use of energy.3E to -9--. gas fuel supply. / 1 3 4 6 7 8 :ncrease the per capita energy consumption rural sector. .trac# liquid . )ssociation of (or#ing personals 6 .Lecture Notes S. . Encourage the con!ersion of Aio-(aste to useful energy. Energy )udit . = in energy sector for energy efficiency prospects and for finding alternati!es for the future. -. Encourage E* Measures and impro!e energy demand side management and recycling of the (astes.E.e!tives (tas/)0 planning0 organi)ing0 arranging materials-finan!e-"uman and ot"er re'uired resour!es0 e1e!uting0 supervising0 monitoring0 removing +ottlene!/s to a!"ieve o+.S.Encourage the forest de!elopment. -/ Encourage the . +aste recycling Steps of Energy Management: -. Energy *onser!ation Measures "E*Ms$ /. Strategies . Encourage rural-electrification.Sehgal moderni&ationD impro!e energy management systemD accelerate fast.e!tives and o set ne# o+. Encourage pri!ati&ation in energy sector. Terms: Energy Management: EM: T"e EM is t"e pra!ti!al s!ien!e of te!"ni'ues and dynami! pro!esses of setting-o+.. -.9-. :mpro!e efficiency and plant load factor "0L>$ from the present 49E to 73E and reduce the transmission losses from . )dministrati!e actions /.. 2rgani&ational changes 3. Encourage the use of non-con!entional energies in industries and other sectors. / steps of EM: -.

Energy *onser!ation Measures 8. *ommercial and industrial energy use accounts for about 13 percent of the carbon dio'ide released from the burning of fossil fuels% and about 69 percent of the sulfur dio'ide emissions from stationary sources.8 MA A. Thus% energy management% by reducing the combustion of methane can dramatically reduce the amount of carbon dio'ide in the atmosphere and help reduce global (arming. C . The problems that organi&ations face from both their indi!idual and national perspecti!es include: F Meeting more stringent en!ironmental quality standards% primarily related to reducing global (arming and reducing acid rain.". Energy management has been an important tool to help organi&ations meet these critical ob ecti!es for their short term sur!i!al and long-term success. *<1 C .63 pounds of carbon dio'ide is produced for e!ery pound of methane combusted. E!aluation of the present Energy *onsumption -9. Energy management helps impro!e en!ironmental quality.-$ Thus% -4 pounds of methane produces 11 pounds of carbon dio'ideD or .educed cooling requirements or more efficient satisfaction of those needs means less *>* usage and reduced o&one depletion in the stratosphere. :f a plant burns coal or fuel oil% then a significant amount of acid rain is produced from the sulphur dio'ide emitted by the po(er plant. Less energy consumption means less petroleum field de!elopment and subsequent on-site pollution. F AecomingIor continuing to beIeconomically competiti!e in the global mar#etplace% (hich requires reducing the cost of production or ser!ices% reducing industrial energy intensi!eness% and meeting customer ser!ice needs for quality and deli!ery times. >or e'ample% the primary culprit in global (arming is carbon dio'ide% *2.H. Equation -. )cid rain problems then are reduced through energy management% as are N2' problems.63 pounds of carbon dio'ide is produced for each pound of methane burned..C-4$ "-..". E!en more sa!ings ha!e been accomplished by some programs. --.Lecture Notes 6.2 "-.-.-% a balanced chemistry equation in!ol!ing the combustion of methane "natural gas is mostly methane$% sho(s that . Monitoring of E* efforts. G *2.H-4$ G "-.H-4$ C . Less energy consumption means less thermal pollution at po(er plants and less cooling (ater discharge. C 1H-$ C. Energy )udit 7. .S.. C . <. 2. Energy management reduces the load on po(er plants as fe(er #ilo(att hours of electricity are needed. 7 . Aeing economically competiti!e in the global mar#etplace and meeting increasing en!ironmental standards to reduce air and (ater pollution ha!e been the ma or dri!ing factors in most of the recent operational cost and capital cost in!estment decisions for all organi&ations. Significant energy and dollar sa!ings are a!ailable through energy management.EME T S. Most facilities "manufacturing plants% schools% hospitals% office buildings% etc$ can sa!e according to the profile sho(n in >igure -. :mplementation of E*Ms.Sehgal Ausiness% industry and go!ernment organi&ations ha!e all been under tremendous economic and en!ironmental pressures in the last fe( years. The list could go on almost indefinitely% but the bottom line is that energy management helps impro!e en!ironmental quality. T2E 3A45E O6 E E7.

Energy management can ma#e the difference bet(een profit and loss and can establish real competiti!e enhancements for most companies. )s most operating people ha!e noticed% energy is ust a means of pro!iding some ser!ice or benefit.ESTE$ (7* C*(4ES O6 E E7. 2ften% the energy sa!ings is not the main dri!ing factor (hen companies decide to purchase ne( equipment% use ne( processes% and use ne( high-tech materials. :n -867% for instance% the aggregate industrial e'penditure for energy (as K33 billion. <o(e!er% the combination of increased producti!ity% increased quality% reduced en!ironmental emissions% and reduced energy costs pro!ides a po(erful incenti!e for companies and organi&ations to implement these ne( technologies.8 MA A.S.Lecture Notes • Lo( cost acti!ities first year or t(o: 3 to -3E • Moderate cost% significant effort% three to fi!e years: -3 to /9E • Long-term potential% higher cost% more engineering: /9 to 39E 6igure 9. +ithout that leadership% the best designed energy management programs produce fe( results. :n most organi&ations it (ill pay to be e!en more specific about the function pro!ided.EME T :f energy producti!ity is an important opportunity for the nation as a (hole% it is a necessity for the indi!idual company. :t is al(ays con!erted into some useful function.9 Typi!al Savings t"roug" Energy Management S. +ith the possible e'ception of feed stoc#s for petrochemical production% energy is not consumed directly. :t represents a real chance for creati!e management to reduce that component of product cost that has risen the most since -86/. :n some cases it has also been useful to brea# do(n the heat in terms of temperature so that the opportunities for matching the heat source to the (or# requirement can be utili&ed. Machine dri!e% for e'ample% instead of /3E of the dollars% required only -. Thirty-fi!e percent of that (as spent for machine dri!e from electric motors% . The first of these is to control the costs of the energy function or service provided. :n addition to energy costs% it is useful to measure the depreciation% maintenance% labor% 8 . but not the Btu of energy.. :n addition% (e (ould li#e to suggest four basic principles (hich% if adopted% may e'pand the effecti!eness of e'isting energy management programs or pro!ide the starting point of ne( efforts.6E for process heat% 6E for electrolytic functions% and . )s sho(n in Table -.8E for feedstoc#s% . :f employees ha!e energy management training% they can ma#e informed decisions and recommendations about energy operating costs. TJM is based on the principle that front-line employees should ha!e the authority to ma#e changes and other decisions at the lo(est operating le!els of a facility. TJM is an integrated approach to operating a facility% and energy cost control should be included in the o!erall TJM program. 2nce that commitment is understood% managers at all le!els of the organi&ation can and do respond seriously to the opportunities at hand.E for space conditioning and light. The e'isting data are not as complete as one (ould li#e% but they do indicate some surprises. Those (ho ha!e ta#en ad!antage of these opportunities ha!e done so because of the clear intent and commitment of the top e'ecuti!e.E of the Atu.Sehgal Thus% large sa!ings can be accomplished often (ith high returns on in!estments and rapid paybac#s. Total Juality Management "TJM$ is another emphasis that many businesses and other organi&ations ha!e de!eloped o!er the last decade.-% this is in blunt contrast to measuring these functions in Atu. >or instance% e!aporation% distillation% drying% and reheat are all typical of the uses to (hich process heat is put. F Maintaining energy supplies that are: I )!ailable (ithout significant interruption% and I )!ailable at costs that do not fluctuate too rapidly. Energy management in the form of implementing ne( energy efficiency technologies% ne( materials and ne( manufacturing processes and the use of ne( technologies in equipment and materials for business and industry is also helping companies impro!e their producti!ity and increase their product or ser!ice quality. SOME S5.

E!en the popular conception that energy prices al(ays go up (as not true for this period% (hen normali&ed to constant dollars.993. :t is the total cost of these functions that must be managed and controlled% not the Atu of energy. sho(s the inconsistency in o!erall energy price changes o!er this period in time. 2ne of the most desirable and least reliable s#ills for an energy manager is to predict the future cost of energy. The large difference in cost of the !arious Atu of energy can ma#e the commonly used Atu measure e'tremely misleading. This !olatility in energy pricing may account for some business decisions that appear o!erly conser!ati!e in establishing rate of return or paybac# period hurdles. Table -. sho(s ho( these !alues and ratios compare in . Therefore% an energy management system that controls Atu per unit of product may completely miss the effect of the changing economics and a!ailabilities of energy alternati!es and the ma or differences in usability of each fuel. These costs add as much as 39E to the fuel cost. >or e'ample% trac#ing building energy use per year for comparison to prior years is best done (ith Atus since doing so negates the effect of energy price !olatility. To the e'tent that energy costs escalate in price beyond the rate of general inflation% in!estment pay bac#s (ill be shortened% but of course the re!erse is also true. -9 .Atu of electricity (as nine times that of . )nd as sho(n before% the a!erage annual price increase of natural gas has been almost three times that of electricity. :n No!ember -868% the cost of .Atu of steam coal.. )!ailabilities also differ and the cost of maintaining fuel fle'ibility can affect the cost of the product. OTE: The recommendation to control energy dollars and not Atus does not al(ays apply.Lecture Notes S.S..Sehgal and other operating costs in!ol!ed in pro!iding the con!ersion equipment necessary to deli!er required ser!ices. *ontrolling the total cost of energy functions is much more closely attuned to one of the principal interests of the e'ecuti!es of an organi&ation I controlling costs. ) quic# glance at Table -. Similarly% comparing the heating use of a commercial facility against an industry segment benchmar# using cost alone can yield (ild results if% for e'ample% one building uses natural gas to heat (hile another uses electric resistanceD this is another case (here using Atus yields more meaningful results.

:t is important to focus controls on those that represent the meaningful costs and aggregate the remaining items in a general category. A !"ange !an +e made to t"e pro!ess met"odology to redu!e t"e need for t"e fun!tion. )n equipment change prior to actually minimi&ing the e'penditure under the present system may lead to o!ersi&ing ne( equipment or replacing equipment for unnecessary functions. :t is only at that point (hen a change in process or equipment configuration should be considered. The third principle is to control and meter only the main energy functions—the roughly . :n most cases% energy functions must become part of the standard cost system so that each function can be assessed as to its specific impact on the product cost. )s 0eter =ruc#er pointed out some time ago% a fe( functions usually account for a ma ority of the costs.99L> furnace to heat a steel part for fabrication% or the minutes of 3-M electricity needed to ma#e an electrolytic separation% for e'ample% can be determined as theoretical minimums and compared (ith the actual figures.3-hp motor dri!e% the minutes necessary in a . :nstalling management control systems can indicate (hat the lo(est possible energy use is in a (ell-controlled situation. . Submetering the main functions can pro!ide the information not only to measure -- . )s in all production cost functions% the minimum standard is often difficult to meet% but it can ser!e as an indicator of the si&e of the opportunity. The seconds of .9E that ma#e up 79E of the costs. e# e'uipment !an +e installed to redu!e t"e !ost of t"e fun!tion.Sehgal ) second principle of energy management is to control energy functions as a product cost. :n comparing actual !alues (ith minimum !alues% four possible approaches can be ta#en to reduce the !ariance% usually in this order: • • • • An "ourly or daily !ontrol system !an +e installed to /eep t"e fun!tion !ost at t"e desired level.S. The starting point for reducing costs should be in achie!ing the minimum cost possible (ith the present equipment and processes. The minimum theoretical energy e'penditure to produce a gi!en product can usually be determined en route to establishing a standard energy cost for that product. 6uel re'uirements !an +e s#it!"ed to a !"eaper and more availa+le form.Lecture Notes S.egardless of the reasonableness of the standard cost established% the inability to measure actual consumption against that standard (ill render such a system useless. :t is surprising ho( many companies still lump all energy costs into one general or manufacturing o!erhead account (ithout identifying those products (ith the highest energy function cost. not as a part of manufacturing or general overhead.. Many manufacturing plants in the @nited States ha!e only one meter% that leading from the gas main or electric main into the plant from the outside source.

To quote the energy director of a large chemical company: NLong-term results (ill be much greater.S. Logging of important fuel usage or beha!ioral obser!ations are almost al(ays necessary before any particular sa!ings results can be reali&ed. . The cost of metering and submetering is usually incidental to the potential for reali&ing significant cost impro!ements in the main energy functions of a production system. Those energy managers (ho ha!e achie!ed the largest cost reductions actually install systems and controlsD they do not ust pro!ide good ad!ice.Sehgal but to control costs in a short time inter!al. is ust the beginning.ef. Energy producti!ity pro!ides an e'panding opportunity% not a last resort. -. The common argument that not much can be done after a -3 or . energy/production ratio. Each step in sa!ing energy needs to be monitored frequently enough by the manager or first-line super!isor to see noticeable changes. The .O )lthough no one #no(s e'actly ho( much (e can impro!e producti!ity in practice% the )merican 0hysical Society indicated in their -861 energy conser!ation study that it is theoretically possible to achie!e an eightfold impro!ement of the -86.Lecture Notes S.9E impro!ement has been reali&ed ought to be dismissed as baseless. The fourth principle is to put the major effort of an energy management program into installing controls and achieving results. :t is common to find general #no(ledge about ho( large amounts of energy could be sa!ed in a plant.% .8 Most certainly% (e are a long (ay from an economic saturation of the opportunities "see% e. The missing ingredient is the discipline necessary to achie!e these potential sa!ings.g.9E or so impro!ement in industrial energy producti!ity since -86. -9$. Therefore% it is critical that an energy director or committee ha!e the authority from the chief e'ecuti!e to install controls% not ust ad!ise line management. )s suggested earlier% the o!erall potential for increasing energy producti!ity and reducing the cost of energy ser!ices is substantial.

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