EADSM Material 2019-20 PDF

Unit I Introduction to Energy Auditing
Energy Audit
Energy Audit is the key to a systematic approach for decision-making in the area
of energy management. It attempts to balance the total energy inputs with its use, and
serves to identify all the energy streams in a facility. It quantifies energy usage according
to its discrete functions. Industrial energy audit is an effective tool in defining and
pursuing comprehensive energy management programme.
Definition:
"The verification, monitoring and analysis of use of energy including submission of
technical report containing recommendations for improving energy efficiency with cost
benefit analysis and an action plan to reduce energy consumption".
Need for Energy Audit:
In any industry, the three top operating expenses are often found to be energy (both
electrical and thermal), labour and materials. If one were to relate to the manageability of
the cost or potential cost savings in each of the above components, energy would invariably
emerge as a top ranker, and thus energy management function constitutes a strategic area
for cost reduction. Energy Audit will help to understand more about the ways energy and
fuel are used in any industry, and help in identifying the areas where waste can occur and
where scope for improvement exists.
The Energy Audit would give a positive orientation to the energy cost reduction,
preventive maintenance and quality control programmes which are vital for production and
utility activities. Such an audit programme will help to keep focus on variations which
occur in the energy costs, availability and reliability of supply of energy, decide on
appropriate energy mix, identify energy conservation technologies, retrofit for energy
conservation equipment etc.
In general, Energy Audit is the translation of conservation ideas into realities, by lending
technically feasible solutions with economic and other organizational considerations within
a specified time frame.
The primary objective of Energy Audit is to determine ways to reduce energy
consumption per unit of product output or to lower operating costs. Energy Audit provides
a " bench-mark" (Reference point) for managing energy in the organization and also
provides the basis for planning a more effective use of energy throughout the organization.
Type of Energy Audit:
The type of Energy Audit to be performed depends on:
- Function and type of industry
- Depth to which final audit is needed, and
- Potential and magnitude of cost reduction desired
Thus Energy Audit can be classified into the following two types.
i) Preliminary Audit
ii) Detailed Audit
i. Preliminary Energy Audit Methodology
Preliminary energy audit is a relatively quick exercise to:
• Establish energy consumption in the organization
• Estimate the scope for saving
• Identify the most likely (and the easiest areas for attention
• Identify immediate (especially no-/low-cost) improvements/ savings
• Set a 'reference point'
• Identify areas for more detailed study/measurement
• Preliminary energy audit uses existing, or easily obtained data
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ii. Detailed Energy Audit Methodology

A comprehensive audit provides a detailed energy project implementation plan for
a facility, since it evaluates all major energy using systems.
This type of audit offers the most accurate estimate of energy savings and cost. It
considers the interactive effects of all projects, accounts for the energy use of all major
equipment, and includes detailed energy cost saving calculations and project cost.
In a comprehensive audit, one of the key elements is the energy balance. This is
based on an inventory of energy using systems, assumptions of current operating conditions
and calculations of energy use. This estimated use is then compared to utility bill charges.
Detailed energy auditing is carried out in three phases: Phase I, II and III.
Phase I - Pre Audit Phase
Phase II - Audit Phase
Phase III - Post Audit Phase
Guide for Conducting Energy Audit at a Glance
Industry-to-industry, the methodology of Energy Audits needs to be flexible.
A comprehensive ten-step methodology for conduct of Energy Audit at field level is
presented
below. Energy Manager and Energy Auditor may follow these steps to start with and
add/change as per their needs and industry types.
Ten step methodology for Energy Audit

Step No Plan of Action Purpose/ Result
Step 1 Phase 1-pre audit phase
 Plan and organize  Resource planning, establish/organize a energy audit
 Walk through audit team
 Informal interview with energy  Organize instruments & time frame
 Manager, production/plant  Macro data collection (suitable to type of industry)
manager  Familiarization of process/plant activities
 First hand observation & assessment of current level
operation and practices
Step 2  Conduct of brief meeting  Building up cooperation

/awareness programme with all  Issue questionnaire for each department
divisional heads and persons  Orientation, awareness creation
concerned (2-3 hours.)
Step 3 Phase 2- audit phase  Historic data analysis, baseline data collection
 Primary data gathering, process  Prepare process flow charts
flow diagram, & energy utility  All service utilities system diagram (Example:
diagram single line power distribution diagram, water,
compressed air & steam distribution)
 Design, operating data and schedule of operation
 Annual energy bill and energy consumption pattern
(refer manual, log sheet, name plate, interview)
Step 4  Conduct survey and monitoring  Measurements:
Motor survey, insulation, and lighting survey with
portable instruments for collection of more and
accurate data. Confirm and compare operating data
with design data.
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Step 5  Conduct of detailed trials/  Trials/Experiments:

experiments for selected energy - 24 hours’ power monitoring (MD, PF, kWh
guzzlers etc.).
- Load variation trends in pumps, fan
compressors etc.
- Boiler/efficiency trials for (4-8 hours)
- Furnace efficiency trials
- Equipment performance experiments etc
Step 6  Analysis of energy use  Energy and material balance & energy loss/waste
analysis
Step 7  Identification and development  Identification and consolidation ENCON measures
of Energy  Conceive, develop and refine ideas
Conservation(ENCON)  Review the previous ideas suggested by unit personal
opportunities  Review the previous ideas suggested by energy audit
if any
 Use brainstorming and value analysis techniques
 Contact vendors for new/ efficient technology
Step 8  Cost benefit analysis  Assess technical feasibility, economic viability and
prioritization of ENCON options for
implementation
 Select the most promising projects
 Prioritize by low, medium, long term measures
Step 9  Report and presentation to the  Documentation, report presentation to the top
top management management
Step 10 Phase III- Post audit phase Assist and implement ENCON recommendation
 Implementation and follow-up measures and monitor the performance
 Action plan, schedule for implementation
 Follow up and periodic review
Q) Write a short note on Energy Audit Report

The Energy Audit Report:
After successfully carried out energy audit energy manager/energy auditor should
report to the top management for effective communication and implementation. The length
and detail of this report will vary depending on the type of facility audited. A residential audit
may result in a computer printout from the utility. An industrial audit is more likely to have a
detailed explanation of the Energy Conservation Opportunities (ECOs) and benefit cost
analyses. The following discussion covers the more detailed audit reports. The report should
begin with an executive summary that provides the owners/managers of the audited facility with
a brief synopsis of the total savings available and the highlights of each ECO. The report should
then describe the facility that has been audited, and provide information on the operation of the
facility that relates to its energy costs. The energy bills should be presented, with tables and
plots showing the costs and consumption. Following the energy cost analysis, the recommended
ECOs should be presented, along with the calculations for the costs and benefits, and the cost
effectiveness criterion. Regardless of the audience for the audit report, it should be written in a
clear, concise and easy-to understand format and style. The executive summary should be
tailored to non-technical personnel, and technical jargon should be minimized. A client who
understands the report is more likely to implement the recommended ECOs.
An outline for a complete energy audit report is shown below.
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Energy Audit Report Format

Executive Summary
A brief summary of the recommendations and cost savings
Table of Contents
Introduction
Purpose of the energy audit
Need for a continuing energy cost control program
Facility Description
Product or service, and materials flow
Size, construction, facility layout, and hours of operation
Equipment list, with specifications
Energy Bill Analysis
Utility rate structures
Tables and graphs of energy consumptions and costs
Discussion of energy costs and energy bills
Energy Conservation Opportunities
Listing of potential ECOs
Cost and savings analysis
Economic evaluation
Action Plan
Recommended ECOs and an implementation schedule
Designation of an energy monitor and ongoing program
Conclusion
Additional comments not otherwise covered
Q) Write in brief about measurements in Energy Audit

Energy Audit Instruments:
The requirement for an energy audit such as identification and quantification of
energy necessitates measurements; these measurements require the use of instruments.
These instruments must be portable, durable, easy to operate and relatively inexpensive.
The parameters generally monitored during energy audit may include the following:
Basic Electrical Parameters in AC &DC systems - Voltage (V), Current (I), Power
factor, Active power (kW), apparent power (demand) (kVA), Reactive power (kVAr),
Energy consumption (kWh), Frequency (Hz), Harmonics, etc.
Parameters of importance other than electrical such as temperature & heat flow,
radiation, air and gas flow, liquid flow, revolutions per minute (RPM), air velocity, noise
and vibration, dust concentration, Total Dissolved Solids (TDS), pH, moisture content,
relative humidity, flue gas analysis - CO2, O2, CO, SOx, NOx, combustion efficiency etc.
Key instruments for energy audit are listed below.
The operating instructions for all instruments must be understood and staff should
familiarize themselves with the instruments and their operation prior to actual audit use
i. Electrical Measuring Instruments:
These are instruments for measuring major electrical parameters such as kVA, kW,
PF, Hertz, kVAr, Amps and Volts. In addition, some of these instruments also measure
harmonics.
These instruments are applied on-line i.e. on running motors without any need to
stop the motor. Instant measurements can be taken with hand-held meters, while more
advanced ones facilitate cumulative readings with print outs at specified intervals.
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ii. Combustion analyser:

This instrument has in-built chemical cells which measure various gases such as
O2, CO, NOX and SOX.
iii. Fuel Efficiency Monitor:
This measures oxygen and temperature of the flue gas. Calorific values of common
fuels are fed into the microprocessor which calculates the combustion efficiency.
iv. Fyrite:
A hand bellow pump draws the flue gas sample into the solution inside the fyrite.
A chemical reaction changes the liquid volume revealing the amount of gas. A separate
fyrite can be used for O2 and CO2 measurement.
v. Contact thermometer:
These are thermocouples which measures for example flue gas, hot air, hot water
temperatures by insertion of probe into the stream. For surface temperature, a leaf type
probe is used with the same instrument.
vi. Infrared Thermometer:
This is a non-contact type measurement which when directed at a heat source
directly gives the temperature read out. This instrument is useful for measuring hot spots
in furnaces, surface temperatures etc.
vii. Pitot Tube and manometer:
Air velocity in ducts can be measured using a pitot tube and inclined manometer
for further calculation of flows.
viii. Water flow meter:

This non-contact flow measuring device using Doppler effect / Ultra sonic
principle. There is a transmitter and receiver which are positioned on opposite sides of the
pipe. The meter directly gives the flow. Water and other fluid flows can be easily measured
with this meter.
ix. Speed Measurements:
In any audit exercise speed measurements are critical as they may change with
frequency, belt slip and loading.
A simple tachometer is a contact type instrument which can be used where direct
access is possible.
More sophisticated and safer ones are noncontact instruments such as stroboscopes.
x. Leak Detectors:
Ultrasonic instruments are available which can be used to detect leaks of
compressed air and other gases which are normally not possible to detect with human
abilities.
Q) Explain in detail how to conserve electrical energy and explain some of the means
to conserve energy
Need of Energy Conservation

Energy conservation avoids wasteful use of energy without much investment. It can
be termed as a new source of energy, which when available, can be readily used without
any further loss or gestation period. It is the cheapest source of energy. In fact, it is the
easiest solution to bridge the gap between demand and supply. Some other reasons are:
Increasing energy demand in India is a drain of the national economy. Besides, it is a major
factor hindering the competitiveness of basic Indian industries in the global market. Thus,
energy conservation is equally important for the nation and industrial firms.
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Electrical power is one of the scarce resources in our country. Generation of electricity is
very capital intensive. 1 MW of power generation costs approximately Rs. 4 crores because
of the low plant load factor and high transmission losses prevalent in the country. The
installed capacity of power station has to be therefore, 2.2 times the electrical load.
Energy saving achieved through energy efficiency and conservation also avoids capital
investment in fuel, mining, transport, water and land required for power plant, thereby
mitigating environmental pollution.
Energy Conservation Schemes
Development of an energy conservation programme can provide savings by reduced energy
use. However, it is economical to implement an energy conservation program only when
savings can offset implementation cost over a period of time. Potential areas of conserving
energy and a logical analysis of the methods or techniques of conservation would provide
a systematic and disciplined approach to the entire conservation strategy as a sequel to the
energy audit. Some established conservation trends are replacement, retrofit, process
innovation, fuel conservation and co-generation.
It is generally considered that investment for energy conservation should be judged by
exactly the same criteria as for any other form of capital investment. Energy conservation
measures may be classified on an economic basis and fall into the following three
categories:
(i) Short term: These measures usually involve changes in operating practices resulting in
little or no capital expenditure.
(ii) Medium term: Low-cost modifications and improvements to existing equipment
where the pay-back period is less than two years and often under one year.
(iii) Long term: Modifications involving high capital costs and which frequently involve
the implementation of new techniques and new technologies.
While the first two categories together can achieve savings of the order of 5-10%, capital
expenditure using existing and new technology may achieve a further 10-15%. It is
impossible to give a comprehensive list of all items in each category but selected examples
are given for each section.
i. Short-term energy conservation schemes
Items in this group can be considered as a tightening of operational control and improved
housekeeping.
(a) Furnace efficiencies: Greater emphasis should be placed on minimum excess
combustion air. Oxygen levels of flue gases should be continually monitored and compared
with target values. Oil burners must be cleaned and maintained regularly.
(b) Heat exchangers: In the case of heat where useful heat is transferred from product
streams to feed streams, careful monitoring of performance should be carried out to
determine optimum cleaning cycles. Frequency of cleaning will generally increase as a
result, with consequent improved heat recovery.
(c) Good housekeeping: Doors and windows should be kept closed as much as possible
during the heating season. Wear natural light is sufficient, do not use artificial light. Avoid
excessive ventilation during the heating season. Encourage staff to wear clothing
appropriate to the temperature of the working areas.
(d) Use of steam: Major steam leaks should be repaired as soon as possible after they
occur: often a firm specializing in ‘on stream’ maintenance can be used.
(e) Electrical power: In industries where all the electrical power is ‘imported’
conservation measures can reduce the annual electricity costs by 10–15 percent. Steam
driven turbines may prove more economical as prime movers. Natural air cooling may be
sufficient and therefore induced–draught fans may be taken out of commission. Pumping
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costs can sometimes be saved by utilizing gravity to move products from one tank to
another. Where possible, use off-peak electricity.
ii. Medium-term energy conservation schemes
Significant savings in energy consumption are often available for quite modest outlays of
Capital based on a pay-back period of less than two years,
(a) Insulation: Improving insulation to prevent cold air leaking into the building and also,
improving insulation of the steam distribution system.
(b) Heating Systems: Improving the time and temperature control of the heating systems
in buildings should result in substantial energy savings.
(c) Replacing air compressors: the damaged air compressors must be replaced by new
ones which gives good compressed air.
(d) Instrumentation: To measure and control the energy conservation parameters,
adequate instrumentation must be provided or operators will soon lose interest in
maintaining efficiencies if they are working with inadequate an unreliable instrument.
(e) Process modifications: Many of these schemes will depend on the nature of the
industry concerned. However, one general scheme will be considered, improved
condensate return systems can increase the amount recovered.
(f) Burners: The control and amount of atomizing stream is important and often in furnaces
and boilers the amount of atomizing steam is far in excess of design.
(g) Electrical Power Savings: Considerable savings may be made by adjusting the
electrical power factor correction.
iii. Long-term energy conservation schemes
To obtain further economics in energy consumption required the spending of significant
amounts of capital, although, in many cases, the return on capital for the long-term
investment may not be as good as that of the medium term. Full financial evaluation is
needed, using the appraisal techniques discussed in Unit-V, to ensure the investment is
economically viable.
(a) Heater modifications: The installation of heating tubes and air pre-heaters to extract
more heat from furnace flue gases.
(b) Improved Insulation: Additional lagging of heated storage tanks. This type of project
often comes within the medium-term group.
(c) Heat recovery: improved heat recovery in the processing areas by additional heat
exchange schemes.
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Q) Write a short note of the following:

i. Sankey diagrams
ii. Pie charts
iii. Load profiles
Sankey diagrams:
Sankey diagrams feature directed arrows that have a width proportional to the flow
quantity visualized: if a flow is twice as wide it represents double the quantity. Flows in the
diagram can show e.g. energy, materials, water or costs.
Within a Sankey diagram the directed flow is always drawn between at least two
nodes (processes). Thus it shows not only flow values but also information about the structure
and distribution of the defined system.
So they are a great alternative to common flow or bar & pie charts. They are gaining
popularity in energy management, facility management, process engineering and process
control and many other kinds of data visualization. Thus Sankey diagrams draw the attention
to the largest entries in the system.
Importance:
In comparison to conventional bar or pie charts and even flow charts, they are more
suitable for visualizing the energy balance or material flows:
 The width of the arrows is proportional to the flow quantity: the larger the width of
an arrow, the larger the material or energy flow. The viewer's focus is drawn to the
most significant flows.
 The arrows show flows from one node to another node: this fact makes them ideal
for production systems or value chains, as this cannot be achieved using standard
tables (e.g. Excel) or even pie & bar charts.
 Thus they communicate your message more attractively: within your team or to
customers and external partners
 Through the visualization data inconsistencies can be detected: such as
measurement and transmission error
 Sankey diagrams are suitable for a wide range of applications: energy, material flow
& supply chain management or business & marketing analysis
Example:
The illustration shows a Sankey diagram which represents all the primary energy flows
into a factory. The widths of the bands are directly proportional to energy production,
utilization and losses. The primary energy sources are gas, electricity and coal/oil and
represent energy inputs at the left hand side of the Sankey diagram. They can also visualize
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the energy accounts, material flow accounts on a regional or national level, and also the
breakdown of cost of item or services.
Pie Charts:
A pie chart (or a circle chart) is a circular statistical graphic, which is divided into slices to
illustrate numerical proportion. In a pie chart, the arc length of each slice (and consequently
its central angle and area), is proportional to the quantity it represents. While it is named for
its resemblance to a pie which has been sliced, there are variations on the way it can be
presented.
Pie chart Tips:
 Always highlight the largest and smallest portions

 If there are multiple pie charts in different time periods, then you must highlight the
key changes / trends
 The phrase “units are measured in ….” should be used when the units have not been
stated in the sentences.
Example:
The energy we use to support the whole range of human activities comes from a variety of
sources, but as you all know, fossil fuels (coal, oil, and natural gas) currently provide the
majority of our energy on a global basis, supplying about 81% of the energy we use:
Load profiles:
A load profile defines how an electricity customer uses its electricity over time. It is
created using measurements of a customer’s electricity use at regular intervals, typically one
hour, thirty or fifteen minutes, and provides an accurate representation of a customer’s usage
pattern.
Since this requires the use of expensive interval meters, for most customer’s utilities
conduct load studies using interval metering on samples of customer groups or segments and
use the results to represent the segment’s usage pattern. Unless you have an interval meter,
your load profile, for electricity supply pricing purposes will be based on your Rate Code
Average Load Profile and your month-by-month total usage.
A basic fact with electricity pricing is that prices are lowest at night and on
weekends. A fixed price is determined by creating a weighted average price for your
electricity usage for each interval and the cost of electricity for that time period. Since nights
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and weekends have the lowest cost, the more relative usage during these periods, the lower
your average cost will be.
Example:
This is an average residential load profile. You can see that the usage peaks are
between the hours of 5PM and 10PM, when people come home from work, watch TV,
etc. Usage then drops off, with the lowest point at 3:00AM. You may say, “All my lights are
off at that time!”. Remember, these numbers are averages of all residential users.
Energy Index: -
Energy index is the figure obtained by dividing energy consumption by production output.
The index may be calculated weekly, monthly or annually.

Example: - To find the energy index we shown below example, here three types of energy
with energy consumption and also produces 100x103 tons of a particular product. Calculate
the energy index?
Energy type Consumption Energy (Wh)
Oil 10x103 gal 0520x109
gas 5x103 therm 0.146x109
Electricity 995x103 kwh 0.995x109
Total 1.661x109
Oil energy index is 0.520x109 wh/100x109 = 5.20x103 wh/ton of product

Gas energy index is 0.146x109 wh/100x109 = 1.46x103 wh/ton of product
Electricity energy index is 0.995x109 wh/100x109 = 9.95x103 wh/ton of product
Total energy index is 1.661x109 wh/100x109 = 16.61x103 wh/ton of product
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Cost Index:
The cost index is the ratio of cost of energy to the production output.
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐸𝑛𝑒𝑟𝑔𝑦
𝐶𝑜𝑠𝑡 𝐼𝑛𝑑𝑒𝑥 =
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑂𝑢𝑡𝑝𝑢𝑡
The cost index is another parameter which can be used to monitor and assess the
cost of the energy consumptions different energy types.
An individual cost index can be determined for each energy form and total cost index can be
determined for the total energy consumption by the company.
Example:
The table shows below the cost of the different energy forms consumed by company.
The company produce 15x103 tons per year
Energy type Consumption Cost, $

Coke 15x103 tons 108x103
Gas 18x103 therms 3.6x103
Electricity 1x199 wh 22.5x103
Total 134.1x103
The cost of particular energy consumption for producing one ton of the produce are given
bellow
Coke cost =108x103/15x103=$ 7.2/ton
Gas cost index=3.6x103/15x103=$ 0.2/ton
Electricity cost index=22.5x103/15x103=$ 1.5/ton
Total cost index=134.1x103/15x103=$ 8.9/ton
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The Electricity Act 2003

The conceptual framework underlying this new legislation is that the electricity
sector must be opened for competition. The Act moves towards creating a market
based regime in the power sector. The Act also seeks to consolidate, update and
rationalize laws related to generation, transmission, distribution, trading and use of
power. It focuses on:
• Creating competition in the industry
• Protecting consumer interest
• Ensuring supply of electricity to all areas
• Rationalizing tariff
• Lowering the cross-subsidization levels
Some of the major provisions of the Electricity Act are:

• Elimination of licensing for setting up a generating station, subject to
compliance with technical standards. This excludes Hydro-Electric power
station
• Removal of captive power plants from the ambit of licensing and other
permissions
• Provision for issuing more than one license for transmission and
distribution in the same geographical area.
• Provision of ‘Open Access’ with respect to transmission
• Introduction of a spot market for bulk electricity
• Unbundling of the SEBs on the basis of functions (generation,
Transmission and Distribution)
• Compulsory metering of all consumers in order to improve accountability
• State Governments will have the freedom to decide the sequence and
phases of restructuring, and also retain the integrated structure of the SEB
for a limited period.
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Unit II Energy Efficient Motors and Power Factor Improvement
Energy Efficient Motors

Introduction:
Electric motors are industries basic need industries consume about 50% of the power
generated in the country and electrical motors consume around 72% of the total electrical
used in the industrial sector. Three phase induction motors are the prime source of energy
consumption in industry. India is facing a problem of heavy energy crunch and gap between
demand and supply is increasing day by day. Now this is the time to pay utmost attention to
more efficient designs. It is always better to use more efficient equipment, motors etc. with
the available supply facilities rather than increasing supply facilities to feed the inefficient or
less efficient loads. The energy efficient motors(EEM) were introduced by the middle of
1970s. Large motor manufacturers started offering EEMs in addition to their standard
efficiency motors(STMs). Efficiency of a standard motor is less as compared to EEM for any
rating, EEMs are more efficient due to their designs, material used, perfect sizing etc.
Oversizing of Standard Motors:
An overrated motor for smaller load is less efficient. While employing an electric
motor for particular application. Safety margins are provided at every step by a designer, an
engineer, a manufacturer and user which adversely affects efficiency and power factor (p. f).
For the same load the oversized motor will take more current as compared to proper sized
motor. Oversized motor is not loaded fully. Most of the standard motors in industry run at a
load which is less than full load. Exact rating of EEM may be selected due to very high reliability
and also service factor which EEM is offering is 1.15 service factor specifies the capacity of the
motor to withstand prolonged overload conditions.
Rewinding of A Standard Motor:
When the motor winding burns due to overheating, old winding is stripped out and
replaced with a new one. This rewinding is very common which often leads to poor
performance and retardation of efficiency in case of standard motor. For this there are no. of
reasons which are as fallows.
 Even slight damage of core or insulation between the stampings may result into
increased losses
 overheating prior to rewinding might change the characteristics of stator core which
may result in increase in iron losses
 During rewinding if smaller diameter wire is used, that results into increasing copper
losses
In addition, if better insulation is not provided, or if proper procedures are not fallowed,
degradation takes place which is often over looked running charges. User should carry out
the economics of EEM vs rewinding as most of the time saving from installing a new EEM
instead rewinding the existing STM may be large.
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Efficiency of EEMs:
whatever input power supplied to the motor is not converted to output due to losses taking
place in the motor is,
stator copper loss 40%
rotor copper loss 20%
iron loss 25%
friction and windage loss 10%
stray loss 5%
Every effort is made to reduce these losses and increase the efficiency in case of an
EEM. Comparison of EEM and STM as per NEMA (national electrical manufacturers
association) is as given table-1
TABLE-1
Comparison of efficiencies and power factor of EEM an STM as per NEMA standards
Motor rating 1.1 kW 4 kW 7.5 kW

%n at full load EEM 84 87 89.5
STM 76 84 87
%n at half load EEM 84 87 89.5
STM 74 83 85
p. f. at full load EEM 0.75 0.82 0.91
STM 0.70 0.78 0.84
Table shows the comparison of EEM and STM for three different ratings.
Fig. 1.0 shows change in the efficiency over a range of 25% to 150% load for 10 h. p. motor.
Comparison of efficiencies of EEM and STM at different loads

Special feature of EEM is that even at half load, remains almost constant at efficiency
at full load. This is a flat characteristic of EEM while in case of STM, efficiency falls down at
half the load. Therefore if full load operation is not required all the time, EEM gives
improved saving over a standard motor.
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Design of EEM to reduce Losses:
Power Loss Area Efficiency Improvement
Use of more copper and larger conductors increase cross sectional

Stator I2R area of stator windings. This lowers resistance (R) of the windings
and reduces losses due to current flow (I).
Rotor I2R Use of larger rotor conductor bars increase size of cross section,
lowering conductor resistance (R) and losses due to current flow (I).
Core loss can be reduced by using high grade silicon steel. The silicon
content is up to 4%. The magnetic loss in watts per kg is very low.
Silicon content decreases hysteresis and eddy current loss. Eddy
Core
current loss is further reduced by using very thin laminations for the
core. By employing thinner laminations, core loss reduction is
obtained is up to 10 to 25 %
Friction in the bearing causes the frictional loss. While ventilating fan
and other rotating elements in the motor causes windage loss. In
Friction & EEM, improved bearings are used to reduce the friction loss and
Windage loss optimum design of fan reduces the windage loss. In EEM, less heat
is generated therefore fan size can be reduced to lower the windage
loss.
Stray loss is a function of many design elements and processing of

the motor. These losses are minimized by careful manufacturing
Stray load losses
process control i.e. careful selection of slot numbers, tooth/slot
geometry, air gap length etc.
Features of EEM:
 Performance of EEM is better than STM under full, partial and no load conditions. due
to high efficiency, EEMs not only save energy in their own and Contribute to reduced
demand but also energy in the cables and transformer that supply the motor
 EEM run cooler. As thermal stresses are low, cooling requirements are low. EEM’s
bearings run about 10˚C cooler than STM bearing. This doubles the insulation life.
EEM’s winding run 20˚ C cooler which increases insulation life by four times
 As EEMs have low losses, their slip is smaller than the standard motor. This small slip
causes them to have low starting torque than the standard motor. Therefore, EEM are
not suitable for those applications where high starting torque is required
 When slip is small, speed of the motor is high. This high speed causes more power
drawn by the motor as power increases with cube of the speed in some loads. Due to
this, saving obtained due to use of EEM may be lost. Some methods to reduce this
property may be employed for EEM
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 Generally, EEM operate at higher p. f. than the STM. This results in to low losses. Also
amount to be spent in the p. f. correction is saved. Rarely EEM may have lower p. f.
than STM
 Starting current is more in case of an EEM than STM. Because of this, sometimes short
circuit protection may trip.
Power Factor
In general power is the capacity to do work. In electrical domain, electrical power is
the amount of electrical energy that can be transferred to some other form (heat, light etc)
per unit time. Mathematically it is the product of voltage drop across the element and current
flowing through it. Considering first the DC circuits, having only DC voltage sources, the
inductors and capacitors behave as short circuit and open circuit respectively in steady state.
Hence the entire circuit behaves as resistive circuit and the entire electrical power is
dissipated in the form of heat. Here the voltage and current are in same phase and the total
electrical power is given by:
Electric Power = Voltage(V) across the element X Current(I) through the element
Now coming to AC circuit, here both inductor and capacitor offer a certain amount of
impedance given by:
The inductor stores electrical energy in the form of magnetic energy and capacitor
stores electrical energy in the form of electrostatic energy. Neither of them dissipates it.
Further, there is a phase shift between voltage and current.
Hence when we consider the entire circuit consisting of a resistor, inductor, and
capacitor, there exists some phase difference between the source voltage and current.
The cosine of this phase difference is called electrical power factor. This factor (0 < cosφ < 1)
represents the fraction of the total power that is used to do the useful work. The other
fraction of electrical power is stored in the form of magnetic energy or electrostatic energy in
the inductor and capacitor respectively.
The total power in this case is:
Total electrical power = Voltage across the element X Current through the element
This is called apparent power and its unit is VA (Volt Amp) and denoted by ‘S’. A
fraction of this total electrical power which does our useful work is called active power. We
denote it as ‘P’.
P = Active power = Total electrical power X cosφ and its unit is watt.
The other fraction of power is called reactive power. Reactive power does no useful
work, but it is required for the active work to be done. We denote it with ‘Q’ and
mathematically is given by:
Q = Reactive power = Total electrical power X sinφ and its unit is VAR (Volt Amp Reactive).
This reactive power oscillates between source and load. To help understand this
better all these power is represented in the form of a triangle.
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Power Factor Triangle

Mathematically, S2 = P2 + Q2 and electrical power factor is active power / apparent
power.
Power Factor Improvement

The term power factor comes into the picture in AC circuits only. Mathematically it is
the cosine of the phase difference between the source voltage and current. It refers to the
fraction of total power (apparent power) which is utilized to do the useful work called active
power.
Need for Power Factor Improvement

 Real power is given by P = VIcosφ. The electrical current is inversely proportional to
cosφ for transferring a given amount of power at a certain voltage. Hence higher the
pf lower will be the current flowing. A small current flow requires a less cross-sectional
area of conductors, and thus it saves conductors and money.
 From the above relation, we see having poor power factor increases the current
flowing in a conductor and thus copper loss increases. A large voltage drop occurs in
the alternator, electrical transformer and transmission and distribution lines – which
gives very poor voltage regulation.
 The KVA rating of machines is also reduced by having higher power factor, as per the
formula:
Hence, the size and cost of the machine is also reduced.

This is why electrical power factor should be maintained close to unity – it is significantly
cheaper.
Methods of Power Factor Improvement

There are three main ways to improve power factor:
I. Capacitor Banks
II. Synchronous Condensers
III. Phase Advancers
IV. Capacitor Y-Δ Connection
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1. Static Capacitor Banks

We know that most of the industries and power system loads are inductive that take
lagging current which decrease the system power factor. For Power factor improvement
purpose, Static capacitors are connected in parallel with those devices which work on low
power factor. These static capacitors provide leading current which neutralize (totally or
approximately) the lagging inductive component of load current (i.e. leading component
neutralize or eliminate the lagging component of load current) thus power factor of the load
circuit is improved.
These capacitors are installed in Vicinity of large inductive load e.g. Induction motors
and transformers etc, and improve the load circuit power factor to improve the system or
devises efficiency.
Suppose, here is a single phase inductive load which is taking lagging current (I1) and
the load power factor is Cosθ as shown in figure above.
In above figure, a Capacitor (C) has been connected in parallel with load. Now a
current (Ic) is flowing through Capacitor which lead 90° from the supply voltage ( Note that
Capacitor provides leading Current i.e., In a pure capacitive circuit, Current leading 90° from
the supply Voltage, in other words, Voltage are 90° lagging from Current). The load current
is (I). The Vectors combination of (I1) and (Ic) is (I2) which is lagging from voltage at θ1 as shown
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in phasor diagram. It can be seen from phasor diagram that angle of θ1 < θ2. Therefore, Cosθ2
is less than from Cosθ1.Hence the load power factor is improved by capacitor.
Also note that after the power factor improvement, the circuit current would be less
than from the low power factor circuit current. Also, before and after the power factor
improvement, the active component of current would be same in that circuit because
capacitor eliminates only the re-active component of current. Also, the Active power (in
Watts) would be same after and before power factor improvement.
Advantages:
 Capacitor bank offers several advantages over other methods of power factor
improvement.
 Losses are low in static capacitors
 There is no moving part, therefore need low maintenance
 It can work in normal conditions (i.e. ordinary atmospheric conditions)
 Do not require a foundation for installation
 They are lightweight so it is can be easy to installed
Disadvantages:
 The age of static capacitor bank is less (8 – 10 years)
 With changing load, we have to ON or OFF the capacitor bank, which causes switching
surges on the system
 If the rated voltage increases, then it causes damage it
 Once the capacitors spoiled, then repairing is costly
2. Synchronous Condenser
Synchronous condenser is a rotating machine which is similar to the synchronous

motor, but the shaft of the motor is not brought out of the case. Due to very little shaft load,
the machine demands very little active power. The field excitation of this motor is varied to
produce different power factors. When the synchronous motor is over-excited, it behaves like
a capacitor (property of taking of leading current).
An over-excited synchronous motor operating at no load is termed as synchronous
condenser. When it is connected in parallel with the load that operating at low power factor,
it takes the leading current, thereby it neutralizes the lagging reactive component of the
current similar to a capacitor.
Synchronous condenser has a stationary three-phase armature winding which is
connected to the load terminals where the power factor has to be improved.
And its rotating field is excited from a DC supply (which is drawn from three phase supply and
then by rectification), sometimes it is provided by a small DC generator which is mounted on
the shaft of synchronous condenser.
So the amount of rotor field current of synchronous condenser is controlled by the
amount of DC excitation provided by the DC generator, in other words the amount of power
factor correction is controlled by the amount of DC excitation.
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In the above phasor, the load current IL lags the voltage by an angle ϕL and the current
through synchronous condenser leads the voltage by an angle ϕM.
So the sum of IL and Im gives the resultant of current I that lags the voltage by angle ϕ. From
the figure it is clear that the angle ϕ is less than ϕL and hence cos ϕ is greater than the cos ϕL.
So the power factor is improved by this method.
Advantages:
 We can achieve step less power factor using synchronous condenser method by
changing the magnitude of current with change in excitation.
 Faults in synchronous condenser can be removed easily.
 The motor windings offer higher thermal stability for higher short circuit currents.
Disadvantages:
 Considerable losses in the motor.

 Maintenance cost is high due to rotating component.
 It produces noise.
 At low power rating the cost is high compared to static capacitors method.
 As the synchronous equipment is not self-starting, so extra excitation equipment is
needed for that purpose.
3. Phase Advancer
Phase advancer is a simple AC exciter which is connected on the main shaft of the
motor and operates with the motor’s rotor circuit for power factor improvement. Phase
advancer is used to improve the power factor of induction motor in industries.
As the stator windings of induction motor takes lagging current 90° out of phase with
Voltage, therefore the power factor of induction motor is low. If the exciting ampere-turns
are excited by external AC source, then there would be no effect of exciting current on stator
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windings. Therefore, the power factor of induction motor will be improved. This process is
done by Phase advancer.
Advantages:
 Lagging kVAR (Reactive component of Power or reactive power) drawn by the motor is
sufficiently reduced because the exciting ampere turns are supplied at slip frequency (fs).
 The phase advancer can be easily used where the use of synchronous motors is
Unacceptable
Disadvantage:
 Using Phase advancer is not economical for motors below 200 H.P. (about 150kW)
4. Power Factor correction by using Star – Delta connection
In three phase system, the power factor is improved by connecting the capacitors in star or
delta. The star and delta connected banks are shown in the figure below.
Let, VL = Line voltage

Vp = phase voltage
CΔ = capacitor per phase when the capacitors are connected in delta
Cy = capacitance per phase when the capacitor are connected in stars
Qc = VAR rating of each phase
Delta Connection
The capacitance per phase is given by the equation
Star Connection
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The capacitance per phase is expressed by the equation
From equation (1) and (2) we get
The equation (3) shows that the capacitance requires in star connection of three
phase transformer is equal to three times the capacitance requires per phase when the
capacitors are connected in delta. Also, the working voltage of the star connected bank is
1/√3 equal to the delta connected bank.
For these reasons, the capacitors are connected in the delta in three phase system for
power factor improvement. Delta connection is also better if the capacitors are designed for
higher working voltage.
Q) Explain about the location of capacitors for power factor Improvement

The power factor improver capacitor can be installed at system bus, distribution point
and at load itself. But decision should be taken in view of expenditure and utility.
In certain loads mainly in industrial load, the entire load is switch ON or OFF based on need.
In such cases it is recommended to install capacitor bank with the feeder which provides
entire of this particular load. This scheme is known as branch capacitor bank scheme. As
capacitor bank is directly connected to feeder or branch, it does not help to reduce losses in
primary system from where the branch comes out.
In this scheme, the individual capacitor bank connected with individual load feeder, is
which ON and OFF individually along with load feeder. Hence the scheme provides better
control over reactive power but the scheme is expensive.
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Although installing shunt capacitor bank at every individual load point, compensates
reactive power individually of every load and hence it provides better improvement of voltage
profile, better reduction in individual load losses, and better reduction in energy bill of
individual customer but still it is not practicable as it makes the system complex and
expensive. The main reasons of complexity are in that case, different sizes and capacities of
capacitor bank are required to be installed depending upon the demand of individual load. To
overcome this difficulty, it is always preferable to install a bulk capacitor bank at high voltage
bus system instead of installing smaller capacitor bank at every load point. Although the
control over reactive power of the system is little bit compromised but still it is much practical
approach in the view of complexity and cost. So capacitor bank at load and capacitor bank at
primary systems both have their own benefits. Depending upon the demand of system, both
schemes are used. Capacitor bank can be installed in EHV system, high voltage system,
feeders and individual distribution system.
Distribution System Capacitor Bank
In distribution feeder capacitor bank are installed on pole to compensate reactive
power of that particular feeder. These banks are normally mounted on one of the poles on
which the distribution feeders run. The mounted capacitor banks are normally interconnected
with overhead feeder conductors by means of insulated power cable. The size of the cable
depends upon the voltage rating of the system. The voltage ranges of the system for which
pole mounted capacitor bank can be install, may be from 440 V to 33 KV. The rating of
capacitor bank may be from 300 KVAR to MVAR. The pole mounted capacitor bank can be
either fixed unit or switched unit depending upon varying load condition.
EHV Shunt Capacitor
In extra high voltage system, the generated electrical power may have to be
transmitted a long distance via transmission line. During journey of power, sufficient voltage
may be dropped due to inductive effect of the line conductors. This voltage drop may be
compensated by providing ∑ HV capacitor bank at ∑ HV sub-station. This drop of voltage is
maximum at peak load condition, hence, the capacitor bank installed for in this case should
have switching control to make it off and on as when required.
Substation Capacitor Bank
When high inductive load has to be delivered from a high voltage or medium voltage
substation, one or more capacitor bank of suitable size should be installed at substation to
compensate inductive VAR of the entire load. These capacitors banks are controlled by circuit
breaker and provided with lightening arrestors. Typical protection scheme along with
protection relays are also provided.
Metal Encoder Capacitor Bank
For small and industrial subtraction indoor type capacitor banks may also be used.
These capacitor bank are installed in metal cabinet. This design is compact and bank requires
less maintenance. The uses of these banks are more compared to outdoor bank, as these are
not exposed to external environment.
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Distribution Capacitor Bank

Distribution capacitor banks are normally pole mounted capacitor bank installed
nearer to load point or installed at distribution subtraction. These banks do not help to
improve power factor of primary system. These capacitors bank are cheaper than other
power capacitors bank. All types of protection schemes for capacitor bank cannot be provided
to a pole mounted capacitor bank. Although pole mounted cap bank is outdoor type but
sometimes it is kept in metal enclosure to protect from outdoor environmental conditions.
Fixed Capacitor Bank

There are certain loads mainly certain industrial loads which need fixed reactive power
to meet power factor. In this type feeder fixed capacitor bank is used. These banks do not
have separate control system to switch ON or OFF. These banks run with feeders. The banks
are connected to the feeders as long as the feeders are live.
Switched Capacitor Banks

In high voltage power system, compensation of reactive power is mainly required
during peak load condition of system. There may be reverse effect if the bank is connected to
the system at mean load condition. At low load condition, the capacitive effect of bank may
increase the reactive power of the system instead of decreasing it. In this situation capacitors
bank must be switched ON during peak load poor power factor condition and must also be
switched OFF during low load and high power factor condition. Here switched capacitor banks
are used. When a capacitor bank is switched ON it provides more or less constant reactive
power to the system. It helps to maintain desired power factor of the system even at peak
load condition. It prevents, over voltage of system during low load condition as capacitor is
disconnected from the system during low load condition. During operation of bank, it reduces
losses both of the feeders and transformer of the system as it is directly installed at primary
power system.
Q) Explain in Detail RMS horse power loading

RMS Horsepower Loading
There are great applications especially in hydraulics and hydraulically-driven machines
that have greatly fluctuating load requirements. In some cases, the peak loads last for
relatively short periods during the normal cycle of the machine. At first glance, it might seem
that a motor would have to be sized to handle the worst part of the load cycle. For example,
if a cycle included a period of time where 18HP is required, then the natural approach would
be to utilize a 20 HP motor. A more practical approach to these types of “duty cycle loads”
takes advantage of an electric motor’s ability to handle substantial overload conditions as
long as the period of overload is relatively short compared to the total time involved in the
cycle.
The method of calculating whether or not the motor will be suitable for a particular
cycling application is called the RMS (root mean squared) horsepower loading method. The
calculations required to properly size a motor for this type of application are relatively simple.
The RMS calculations take into account the fact that heat build-up within the motors
is very much greater at a 50% overload than it is under normal operating conditions. Thus,
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the weighted average horsepower is what is significant. RMS calculations determine the
weighted average horsepower.
In addition to reducing the size and cost of a motor for a particular application, RMS loading
also helps improve the overall efficiency and power factor on a duty cycle-type load. For
example, when an oversized motor is operated on a light load, the efficiency is generally fairly
low. So working the motor harder (with a higher average horsepower) will generally result in
improved overall efficiency and reduced operating cost. In order to use the RMS method of
horsepower determination, the duty cycle has to be spelled out in detail as shown in the
following example.
Time (sec) 0-10 10-20 20-30 30-40 40-50 50-60
Load (HP) 5 7 1 9 1 8
HP²t 250 490 10 810 10 640
The RMS horsepower is calculated by the following equation:
𝐻𝑃1 2 × 𝑡1 + 𝐻𝑃2 2 × 𝑡2 + ⋯ + 𝐻𝑃𝑛 2 × 𝑡𝑛

𝐻𝑃𝑅𝑀𝑆 = √
𝑡1 + 𝑡2 + ⋯ + 𝑡𝑛
∑𝑛𝑖=1 𝐻𝑃𝑖 2 × 𝑡𝑖
𝐻𝑃𝑅𝑀𝑆 = √
∑𝑡
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Over Motoring
In many instances, the practice has been to over motor an application, i.e., to select
a higher-horsepower motor than necessary.
The disadvantages of this practice are
Lower efficiency
Lower power factor
Higher motor cost
Higher controller cost
Higher installation costs
Example: Consider the comparisons of the 40-hp motor that could have been selected based
on the peak load versus the 30-hp motor that can be selected on the basis of the duty cycle:
1. Motor cost: list price of standard open 1800-rpm drip-proof motor:
30 hp = $1160 40 hp = $1446
2. Control Cost: NEMA-1 general-purpose motor, 240-V starter:
30 hp, size 3 = $600 40 hp, size 4 = $1350
This results in a cost difference of $1036, or 59%
Power factor with nonlinear loads
Power factor is a measure of how effectively a specific load consumes electricity to
produce work. The higher the power factor, the more work produced for a given voltage and
current. Figure shows the power vector relationships for both linear and non-linear loads.
Power factor is always measured as the ratio between real power in kilowatts (kW) and
apparent power in kilo volt amperes (kVA).
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For linear loads, the apparent power in kVA (S = V•I) is the vector sum of the reactive
power in kVAR (Q) and the real power in kW (P). The power factor is P/S = CosΦ, where Φ is
the angle between S and P. This angle is the same as the displacement angle between the
voltage and the current for linear loads. For a given amount of current, increasing the
displacement angle will increase Q, decrease P, and lower the PF. Inductive loads such as
induction motors cause their current to lag the voltage, capacitors cause their current to lead
the voltage, and purely resistive loads draw their current in-phase with the voltage. For
circuits with strictly linear loads (a rare situation) simple capacitor banks may be added to the
system to improve a lagging power factor due to induction motors or other lagging loads.
For non-linear loads, the harmonic currents they draw produce no useful work and
therefore are reactive in nature. The power vector relationship becomes 3 dimensional with
distortion reactive power, H, combining with both Q and P to produce the apparent power
which the power system must deliver. Power factor remains the ratio of kW to kVA but the
kVA now has a harmonic component as well. True power factor becomes the combination of
displacement power factor and distortion power factor. For most typical non-linear loads, the
displacement power factor will be near unity. True power factor however, is normally very
low because of the distortion component. For example, the displacement power factor of a
personal computer will be near unity but its total power factor is often in the 0.65 – 0.7 range.
The best way to improve a poor power factor caused by non-linear loads is to remove the
harmonic currents.
Most Utilities charge their customers for energy supplied in kilowatt-hours during the
billing period plus a demand charge for that period. The demand charge is based upon the
peak load during the period. The demand charge is applied by the utility because it must
provide equipment large enough for the peak kVA demand even though the customer’s
power demand may be much lower. If the power factor during the peak period (usually a 10-
minute sliding window) is lower than required by the utility (usually 0.9 or 0.95), the utility
may also apply a low PF penalty charge as part of the demand charge portion of the bill.
Suppose the peak demand was 800kW with apparent power consumption of 1000kVA
(a PF of 0.8). If a power factor penalty was applied at 0.9, the Utility would charge the
customer as if his demand was 0.9 x 1000kVA = 900kW even though his peak was really
800kW, a penalty of 100kW. Improving the power factor to 0.85 at 1000kVA demand would
lower the penalty to just 50kW. For power factors of 0.9 to 1.0, there would be no penalty
and the demand charge would be based upon the actual peak kW. The demand charge is
often a substantial part of the customer’s overall power bill, so it is worthwhile to maintain
good power factor during peak loading and reducing the harmonic current as drawn by the
loads can help achieve this
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Unit III Lighting and Energy Instruments for Audit
Lighting Terms
Brightness - the intensity of the sensation which results from viewing a surface or space which
directs light into the eyes.
Colour Rendition - the effect of a light source on the colour appearance of objects in
conscious or subconscious comparison with their colour appearance under a reference or
standard light source.
Contrast - the relationship between the brightness of an object and its immediate
background.
Distribution - the dispensing or spreading of light over a surface.
Ellipsoidal Reflector Lamps - incandescent lamps designed to be placed in canister fixtures;
they direct more light out of the fixture.
Foot-candle - the basic measure used to indicate level of illumination. One-foot candle (fc) is
equal to one unit of light flux distributed evenly over a one-square foot surface area. (See
lumens).
High-Pressure Sodium - the most efficient light source of the high intensity discharge family.
It provides a light golden colour and long life.
Low-Pressure Sodium - presently the most efficient light source available. Applications are
limited because of its poor yellow colour.
Lumens - the measurement of light flux produced by a lamp, as opposed to foot-candles
which represent the amount of all light - reflected or otherwise - within one square foot.
Lumens-per-watt - the relative measure of efficiency (referred to as efficacy) of a light source,
calculated by dividing the light output (lumens) by the electrical power input to produce that
light (watts) for a given lamp type.
Metal Halide - an efficient high intensity light source with crisp, white colour.
Task Lighting - lighting that falls on a given viewing task or object, supplementary lighting as
opposed to general overall lighting level.
Lighting Energy Audit
Lighting energy audit is done in order to:

 To save energy and money with existing equipment by using new light control
strategies
 To improve your facility's image
 To enhance your facility's atmosphere for occupants with added comfort, safety, and
productivity
 To re-optimize system operation after facility changes
A lighting audit is an investigative process that measures conditions against standards to
determine where cost-effective changes can be made. Below is a brief description of the steps
to be followed when conducting an energy audit for lighting.
 Walk-through of the plant to observe the quantity and quality of available light.
Problems are noted such as an area where lighting levels are too high, where lights
are left on unnecessarily, or where factors leading to visual discomfort may inhibit
productivity or safety.
 The type, quantity, location and height of lamps and fixtures are recorded.
 Detailed measurements of illumination levels are taken with a light meter, both at
task areas and for general overall lighting.
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 Simple retrofit possibilities, such as switching from general lighting to task lighting are
considered.
For example, by simply lowering the fixture height, a lighting system can be
changed from general to task-oriented with a desirable increase in contrast between
the task area and the general workplace.
 Also, painting equipment slightly lighter than the surrounding area adds contrast and
aids workers in discerning moving parts, thereby increasing safety. Possible areas for
these improvements are noted during the audit.
 After all the simple retrofit options are examined, a plan for the general modification
of the plant lighting is devised. Such a plan integrates simple modifications and major
improvements into a cohesive, energy efficient system.
Some lighting Energy Conservation measures:

 Regular Maintenance
Periodic cleaning of dusty bulbs and fixtures can improve lighting levels by up to 30%.
 Lamp Replacement
Fluorescent lamps should be replaced at the end of their useful life (defined as 70% of the
rated life)
 Lower Fixtures
Lowering ceiling fixtures to bring them closer to the workspace increases the amount of
available light focused on the task.
 Repainting
Overall lighting efficiency is directly affected by the colour of the ceilings, walls, equipment
and other surfaces in the workplace. Selecting lighter, more reflective colours when
repainting can enhance contrast and promote safety by increasing the amount of available
light.
 Daylighting
Installation of skylights in conjunction with automatic dimming devices can yield significant
savings in some environments.
 Control Devices
The installation of various lighting control devices can reduce energy costs. Recent
technological advances in industrial lighting system components and controls make it possible
to reduce consumption significantly through scheduling and automatic control.
 Convert to Energy Efficient Fluorescent Lamps
One attractive alternative for energy conservation is replacing existing fluorescent lamps with
the new lower wattage energy efficient ones.
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Good Lighting System Design and Practice

A. Good Lighting System Design:
The main objective of good lighting design is to provide right quantity and quality
of light. For good lighting system design the following points are to be considered
i. Identify the requirements:
This involves gaining a full understanding of what the lighting installation is
intended to achieve. This includes the following:
Illuminance, Glare, Mood of the space, Relation to shape of space, Things to be
emphasised, Things to hide, Direction of light, Interaction of daylight etc.,
ii. Determine the method of lighting:
At this stage, consideration is given to how the light is to be delivered, e.g. will it
be recessed, surface mounted, direct or indirect, or will up-lighting be used, and its
primary characteristics, e.g. will it be prismatic, low brightness or mellow light.
Consideration should be given at this stage to the use of daylight to minimise the need
for artificial light.
iii. select the lighting equipment:
A good lighting equipment is selected which suits for the given area
iv. Calculate the lighting parameters:
Lighting calculation methods fall into three broad categories:
1. Manual calculation methods
2. Three dimensional modelling
3. Visualisation
Photometric data for light sources and luminaires is commercially available to
contribute to these calculations.
V. Determine the type control system:
The effectiveness and efficiency of any lighting installation is affected as much by
the control system as by the light sources and fixtures chosen.
Give consideration to:
 Providing multiple switches to control the number of lights that come on at any one
time. Using one switch to turn on all the lights in a large room is very inefficient.
 Placing switches at the exits from rooms and using two-way switching to encourage
lights to be turned off when leaving the room.
 Using ‘smart’ light switches and fittings which use movement sensors to turn lights
on and off automatically. These are useful in rooms used infrequently where lights
may be left on by mistake, or for the elderly and disabled.
 Using timers, daylight controls and motion sensors to switch outdoor security
lights on and off automatically. controls are particularly useful for common areas,
such as hallways, corridors and stairwells, in multi-unit housing.
 Using solar powered lighting for garden and security lights.
vi. Choice of Luminaire

The performance of a luminaire should be considered just as carefully as its cost.
In the long term a well-designed, well-constructed luminaire will be cheaper than a poor
quality unit; and the salient features of a good quality luminaire are:
 Sound mechanical and electrical construction and a durable finish
 Adequate screening of high luminance lamps to minimise discomfort and glare
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 Adequate heat dissipation to prevent over-heating of the lamp, wiring and ancillary
equipment
 High light output ratio with the appropriate light distribution
 Ease of installation, cleaning and maintenance
B. Good lighting practice:
1. Install LED panel indicator lamps in place of filament lamps

LED’s have following merits over filament lamp
 Less power consumption
 Withstand high voltage fluctuation in the power supply
 Longer operating life
2. Use HPSV (High Pressure Sodium Vapour lamp) lamps for areas like Godowns, Storage
Yards, Flood Lighting and Street lighting
3. Use a lighting distribution software to estimate location and height of lighting.
4. Use a dedicated lighting transformer with different tap settings that drop the voltage to
205-210 volts.
Eg: Most lamps have rating of 210 Volts. Reduction in voltage by 11%, drops power
consumption by 20%. But causes insignificant drop in illumination level (<2%). Over all
increases life of lamps
5. Make maximum use of natural light
 Use combination of day light and lamps
 Use natural light controlled by motorized blinds
 Sensors to detect natural light and switch on-off artificial lighting
 Provide smooth transition from natural light to artificial light
 Use timer control switches for outside lighting system
6. Use occupancy / movement sensors, dimmer control systems wherever required. Most
ideal locations for using occupancy sensors are lobbies, meeting rooms and washrooms.
7. Proper grouping of lights (panel) and lighting control system
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Energy Audit Instruments

Clamp Meter (Tong Tester):
Clamp meter is often known as Tong Tester also. It is an easy to use test equipment
and is useful in the measurement of a live-conductor without damaging / powering down the
circuit. One of the biggest advantage of this equipment is that one may take the measurement
of a high value current even without powering off/shutting down the circuitry under test.
Types of Clamp Meter (Tong Tester):
 Current Transformer Clamp Meter (Tong Tester) – Used to measure AC current.

 Hall Effect Clamp Meter (Tong Tester) – Used to measure AC as well as DC current.
a. Current Transformer Clamp Meter (Tong Tester) – Operating Principle
A current transformer based Tong Tester (Clamp meter) consists of two clamps made of
Ferrite Iron. These clamps are independently wrapped up with Copper coils. Together both of
them forms a magnetic core which actually does the measurements. The Electro-magnetic
principle says that “whenever a current flows through a conducting material, it causes the
generation of magnetic-flux”.
Fig. – Operating Principle of Current Transformer Tong Tester (Clamp Meter)

Now, let us assume that the conducting material from which the current is passing
through is the primary arm of the transformer. Due to the current’s movement, a magnetic
field is generated in it. When the arm of tong tester is placed for measurement, it acts as a
secondary winding of the transformer. The iron core of the arm of tong tester concentrates
the magnetic field of the primary winding (i.e. conductor) and hence a current in proportion
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to the primary-current is generated by electromagnetic-induction. This arm of the tong tester

is connected to a measurement circuitry which in turn provides the current-reading finally.
The measuring unit of magnetic field is called as Magnetic Flux. Current transformer based
clamp meters respond only to ac waveforms.
Current range measured using clamp meter:

The magnetic field induced in the arms of clamp meter is directly proportional to the
number of turns in the secondary winding. Since the number of turns in the secondary
winding is much more compared to the number of turns in the primary winding wrapped
around the core, a very small magnitude of current goes to the measuring unit’s input.
Let’s understand it with an example. If the number of turns in the secondary winding
is 100, then the current induced in the secondary winding will be 1/100th of the current
flowing through the primary winding. This means that for measuring 100 amp of current, only
1 amp will reach to the input of meter. Using this methodology, we can easily measure even
large currents with clamp meter just by increasing the number of turns in the secondary
winding.
b. Hall Effect Clamp Meters – Operating Principle

Hall Effect clamp meters are capable of measuring both AC and DC current.
Fig. – Operating Principle of Hall Effect Tong Tester (Clamp Meter)
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Similar to current transformer Clamp Meters, Hall Effect clamp meters also consists of
two clamps made of Ferrite Iron. However, these clamps are not wrapped up with copper
wires like in case of Current transformer clamp meters. In Hall Effect clamp meter, the
magnetic field induced by the current flowing through the conductor is concentrated in the
gap(s) (one or more) of the core whenever the clamps close around the conductor.
When you carefully see the clamp tips, you can notice the existence of Gap. When
both the clamps of Hall Effect clamp meter meet/ close, the Gap in the Clamp core creates an
air pocket where the magnetic field is concentrated. The gap also ensures that the core should
not be saturated by limiting the magnetic flux. There is a small semiconductor component
inside the gap which is known as Hall Effect Sensor. This Hall Effect Sensor is not visible as it
is covered with a plastic molding. The Hall Effect Sensor is a special transducer which can vary
its output voltage depending on the increase or decrease of magnetic field due to current
flowing in the conductor. This property of Hall Effect sensor is used to measure current. The
voltage generated by the Hall Effect Sensor is further amplified and scaled for representing
the current flowing through the conductor.
The Hall Effect Clamp meter can also measure DC current as the core is capable of
concentrating DC magnetic fields also. However, when measuring the current, these clamp
meters must be zeroed to avoid presence of errors due to magnetic field of Earth or any other
magnetic field source in near vicinity.
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Thermocouple
Basically thermocouple consists of two different metals which are placed in contact with each
other as shown in the diagram.
First part is called the heater element because when the current will flow through this,
a heat is produced and thus the temperature will increased at the junction. At this junction
an emf is produced which is approximately proportional to the temperature difference of hot
and cold junctions.
The emf produced is a DC voltage which is directly proportional to root mean square
value of electric current. A permanent magnet moving coil instrument is connected with the
second part to read the current passing through the heater. The thermocouple type
instruments employ thermocouple in their construction. Thermocouple type instruments can
be used for both ac and DC applications. Also thermocouple type of instruments has greater
accuracy in measuring the current and voltages at very high frequency accurately.
Now we will look how the temperature difference is mathematically related to generated emf
at the junction in thermocouple type of instruments. Let us consider temperature of the
heater element be Ta and the temperature of cold metal be Tb.
Now it is found that the generated emf at the junction is related to temperature difference
as:
Construction of Thermocouple Type Instrument

Now let us look at the construction of Thermocouple type Instruments. Broadly speaking
the thermocouple type of instruments consists of two major parts which are written below:
(a) Thermo electric elements: The thermocouple type of instruments consists of thermo
electric elements which can be of four types:
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1. Contact Type: It has a separate heater which is shown in the diagram.
The action of thermocouple type instruments can be explained briefly as,

At the junction the electrical energy is being converted to thermal energy in the heater
element. A portion of the heat is transferred to the hot junction while most of the heat energy
is dissipated away. The heat energy which is transferred to hot junction is again converted to
electrical due to Seebeck effect. Only a portion of electrical energy is converted into
mechanical energy which is used to produce a deflecting torque. The overall efficiency of the
system is low thus the instrument consumes high power. So there is a requirement of highly
accurate and sensitive DC instrument.
2. Non-Contact Type:
In non-contact type there is insulation between the heating element and the
thermocouple i.e. there no direct contact between two. Due to this these instruments are not
much sensitive as compared contact type.
3. Vacuum Thermo-elements:
These types of instruments are mostly employed for the measurement of electric
current at very high frequency of the order of 100 Megahertz or more as these instruments
retain their accuracy even at such high frequency.
4. Bridge Type:
These bridges are manufactured on the AC ratings usually from 100 mA to 1 A. In this
two thermocouple are connected to form a bridge which is shown in the figure given below:
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There is no requirement of heating element, the electric current which directly passing
through the thermocouple raises the temperature which is directly proportional to the I2R
losses. The bridge works on balanced condition at which there will be no current in the arm
ab. The connected meter will show the potential difference between the junctions a and b.
Advantages:
1. The thermocouple type of instruments accurately indicates the root mean square
value of current and voltages irrespective of the waveform. There is a wide varieties
of range of thermocouple instruments are available in the market.
2. Thermocouple type of instruments give very accurate reading even at high frequency,
thus these types of instruments are completely free from frequency errors.
3. The measurement of quantity under these instruments is not affected by
stray magnetic fields.
4. These instruments are known for their high sensitivity.
5. Usually for measuring the low value of current bridge type of arrangement is used i.e.
ranging from 0.5 Amperes to 20 Amperes while for measuring the higher value of
current heater element is required to retain accuracy.
Disadvantages:
Instead of many advantages these type of instruments possess one disadvantage,
The over load capacity of thermocouple type of instrument is small, even fuse is not able to
the heater wire because heater wire may burn out before the fuse blows out.
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Pyrometer
Working Principle –
When temperature being measured is very high and physical contact with the
medium to be measured is impossible or impractical, optical pyrometers based on the
principle of thermal radiation are used. These Pyrometer Working Principle are used under
condition where corrosive vapours or liquids would destroy thermocouples, resistance
thermometer and thermistor, if made to come in contact with the measured medium.
Radiation pyrometers measures the radiant (energy) heat emitted or reflected by a hot
object. Thermal radiation is an electromagnetic radiation emitted as a result of temperature
and lies in the wavelength of 0.1 —100 μm.
According to the principle of thermal radiation, the energy radiated from a hot body
is a function of its temperature. Referring to Fig. 13.54, the heat radiated by the hot body is
focused on a radiation detector. The radiation detector is blackened and it absorbs all or
almost all radiation falling on it (if the temperature is very small compared with that of hot
body, then
Therefore, the heat received by the detector is proportional to the fourth power of the
absolute temperature of the hot body.
Radiation pyrometers are of two types.
i. Total Radiation Pyrometers
ii. Optical Pyrometers
i. Total Radiation Pyrometers:
The total radiation pyrometer receives all the radiation from a particular are of hot
body. The term total radiation includes both the visible and invisible radiations. It consists of
radiation receiving element and a measuring device.
The mirror type radiation pyrometer is shown in figure below. Here, the diaphragm
unit along with a mirror is used to focus the radiation on a thermocouple. The distance
between the mirror and the thermocouple is adjusted for proper focus.
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Here, the image of the front diaphragm is focused on the thermocouple by the mirror.
Therefore, the temperature measurements are independent of the distance of the target.
If there is any smoke, dust in the space between the target and transducer, it reduces
the radiation. Hence negative errors. If there are any heat sources like hot gases and flames,
then the meter reading will be high.
The characteristics of this pyrometer is non-linear. It has poor sensitivity. This device
is not used for temperature lower than 600 to 1200 degree Celsius. Output from this
pyrometer is taken to pmmc instrument.
Advantages of Radiation pyrometer:
 Used to measure very high temperature

 High output signal and moderate cost
 No need to have contact with measuring system
 Fast response
Disadvantage of Radiation pyrometer:
 Non-linear scale
 Error will occur
 Emissivity of target material affects the measurements
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ii. Basic Principle of optical pyrometer:
The principle of temperature measurement by brightness comparison is used in

optical pyrometer. A colour variation with the growth in temperature is taken as an index of
temperature.
This optical pyrometer compares the brightness of image produced by temperature

source with that of reference temperature lamp. The current in the lamp is adjusted until the
brightness of the lamp is equal to the brightness of the image produced by the temperature
source. Since the intensity of light of any wave length depends on the temperature of the
radiating object, the current passing through the lamp becomes a measure of the
temperature of the temperature source when calibrated.
Construction of optical pyrometer:
The main parts of an optical pyrometer are as follows:
An eye piece at one end and an objective lens at the other end.
A power source (battery), rheostat and millivolt meter (to measure current) connected to a
reference temperature bulb.
An absorption screen is placed in between the objective lens and reference
temperature lamp. The absorption screen is used to increase the range of the temperature
which can be measured by the instrument. The red filter between the eye piece and the lamp
allows only a narrow band of wavelength of around 0.65mui
Operation of optical pyrometer:
When a temperature source is to be measured, the radiation from the source are
focused onto the filament of the reference temperature lamp using the objective lens. Now
the eye piece is adjusted so that the filament of the reference temperature lamp is in sharp
focus and the filament is seen super imposed on the image of the temperature source. Now
the observer starts controlling the lamp current and the filament will appear dark as in figure
(a) if the filament is cooler than the temperature source, the filament will appear bright as in
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figure (b) if the filament is hotter than the temperature source, the filament will not be seen
as in figure (c) if the filament and temperature source are in the same temperature.
Hence the observer should control the lamp current until the filament and the
temperature source have the same brightness which will be noticed when the filament
disappears as in figure (c) in the superimposed image of the temperature source [ that is the
brightness of the lamp and the temperature source are same]. At the instance, the current
flowing through the lamp which is indicated by the millivolt meter connected to the lamp
becomes a measure of the temperature of the temperature source when calibrated.
Applications of optical pyrometer:

Optical pyrometers are used to measure temperature of molten metals or heated
materials. Optical pyrometers are used to measure temperature of furnace and hot bodies.
Advantages of optical pyrometer:

 Physical contact of the instrument is not required to measure temperature of the
temperature source.
 Accuracy is high + or – 5’C.
 Provided a proper sized image of the temperature source is obtained in the
instrument, the distance between the instrument and the temperature source doesn’t
matter.
 The instrument is easy to operate.
Limitations of the Optical pyrometer:
Temperature of more than 700’C can only be measured since illumination of the
temperature source is a must for measurement. Since it is manually operated, it cannot be
used for the continuous monitoring and controlling purpose.
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Programmable logic controller (PLC):

A programmable logic controller, commonly known as PLC, is a solid state, digital,
industrial computer using integrated circuits instead of electromechanical devices to
implement control functions. It was invented in order to replace the sequential circuits which
were mainly used for machine control. They are capable of storing instructions, such as
sequencing, timing, counting, arithmetic, data manipulation and communication, to control
machines and processes.
According to NEMA (National Electrical Manufacture’s Association, USA), the
definition of PLC has been given as,
“Digital electronic devices that uses a programmable memory to store instructions and
to Implement specific functions such as logic, sequencing, timing, counting, and arithmetic to
control machines and processes.”
PLCs are used in many industries and machines. Unlike general-purpose computers,
the PLC is designed for multiple inputs and output arrangements, extended temperature
ranges, immunity to electrical noise, and resistance to vibration and impact. Programs to
control machine operation are typically stored in battery-backed-up or non-volatile memory.
A PLC is an example of a hard real time system since output results must be produced in
response to input conditions within a limited time, otherwise unintended operation will
result.
Some of PLC applications are,
 Equipment Status
 Process Control
 Chemical Processing
 Equipment Interlocks
 Machine Protection
 Smoke Detection
 Gas Monitoring
 Envelope Monitoring
 Personnel Safety
 High-precision Synchronized Control in Crimping Equipment using PLC
 Bottle Filling Control using PLC
 High-speed Sorting on Conveyors using PLC
 Image-processing Inspection of Electronic Components using PLC
 Shopping Mall Fountain Control using PLC
 Air Cleaner Control using PLC
 Sheet Feeding Control in Packing Machine using PLC
 Testing Equipment
 Warming Moulding Machines
 Annunciator
 Lighting Pattern Control
 Escalator with Automatic Operation Function
 Drilling PCBs with High-speed, High-precision Positioning
 Hydraulic Pressure Control in Forming Machine
 Temperature Cascade Control in Industrial Furnace
 Production Control System
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Lux Meter
Lux is a measurement of the overall intensity of light within an environment for any
given area or distance from the source or lux is the amount of light in an environments
perceived by the human eye. Quality of light in workplace, schools and public buildings affect
the quantity and quality of performance in workers and students.
In other words, the lux is a unit of measurement of brightness, or more accurately,
illuminance. The illumination is how level of luminous flux is falling on a surface area. The
luminous flux is visible component that is defined in radiant flux (light power) divided by
relative sensitivity of human eyes over the visible spectrum. This means the Lux is well fit to
light level from sense of human eyes. Lux is ultimately derives from the candela, the standard
unit of measurement for the power of light.
Measuring Lighting Levels
Measuring lighting or the illumination of an environment requires the use of
an incident Lux meter or foot-candle meter. A lux meter is a device for measuring brightness.
It specifically measures the intensity with which the brightness appears to the human eye.
This is different than measurements of the actual light energy produced by or reflected from
an object or light source.
A lux meter works by using a photo cell to capture light. The meter then converts this
light to an electrical current. Measuring this current allows the device to calculate the lux
value of the light it captured.
The lux light meter’s calculation of illuminance is done by using the Point Source
process. The measure of the lux light meter varies depending on the light’s intensity and
distance. If a point source has no reflections, a portion of the produced light reaches a
surface.
Applications of Lux meter
i) Photography and Video Filming. By measuring the light in luxes, photographers can adjust
their shutter speed and depth of field to get the best picture quality. The device can also be
very useful for filming outdoor scenes of television programs or movies as it allows
adjustments to make sure scenes filmed in different light levels have a consistent brightness
on screen.
ii) Health and Safety regulations: It can be used to check whether the brightness of a room is
enough to meet any rules designed to protect workers from suffering damage to their
eyesight. Using a lux meter takes into account the size of the room in a way that simply
measuring the intensity of the light source in lumens would not.
iii) Photographic Measurements; It also measures the photography subject’s
illuminance. When using a lux light meter, the photographer can determine the aperture
number and the exposure setting.
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Wattmeter
Construction of a Wattmeter:
The internal construction of a wattmeter is such that it consists of two cols. One of the
coil is in series and the other is connected in parallel. The coil that is connected in series with
the circuit is known as the current coil and the one that is connected in parallel with the circuit
is known as the voltage coil. These coils are named according to the convention because the
current of the circuit passes through the current coil and the voltage is dropped across the
potential coil, also named as the voltage coil.
The needle that is supposed to move on the marked scale to indicate the amount of
power is also attached to the potential coil. The reason for this is that the potential coil is
allowed to move whereas the current coil is kept fixed.
The construction of a wattmeter is shown in the figure below.
Working of a Wattmeter:
When the current passes through the current coil, it creates an electromagnetic field
around the coil. The strength of this electromagnetic field is directly proportional to the
amount of current passing through it.
In case of DC current, the current is also in phase with its generated electromagnetic
field. The voltage is dropped across the potential coil and as a result of this complete process,
the needle moves across the scale. The needle deflection is such that it is according to the
product of the current passing and the voltage dropped, that is, P = VI.
This was the case of DC power. We know that the AC power is given by the formula P = VIcosθ,
and we know that this cosθ factor is because of the fact that the current and voltage are not
in phase.
Applications of Wattmeter
1. As other measuring instruments, watt meters are also used extensively in electrical circuit
measurement and debugging.
2. They are also used in industries to check the power rating and consumption of electrical
appliances.
3. Electromagnetic watt meters are used to measure utility frequencies.
4. They are used with refrigerators, electric heaters and other equipment to measure their
power ratings.
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Unit IV Introduction to Demand Side Management
Demand Side Management

Introduction:
The term DSM was coined following the time of the 1973 energy crisis and 1979
energy crisis. Demand Side Management was introduced publicly by Electric Power Research
Institute (EPRI) in the 1980s.
Dedinition: ‘Scientific control of usage and demand of Electricity, for achieving better load
factor and economy, by the Licensee/Supplier’.
Demand Side Management (DSM) means managing of the demand for power, by
utilities and distribution companies, among some or all its customers to meet current or
future needs. DSM programs result in energy and / or demand reduction. Usually, the goal of
demand side management is to encourage the consumer to use less energy during peak
hours, or to move the time of energy use to off-peak times such as night time and weekends
thereby reducing the need for buying expensive imported power during peak hours. Peak
demand management does not necessarily decrease total energy consumption, but could be
expected to reduce the need for investments in networks and/or power plants.
DSM also enables end-users to better manage their load curve and thus improves the
profitability. Potential energy saving through DSM is treated same as new additions on the
supply side in MWs. DSM can reduce the capital needs for power capacity expansion.
Concept of DSM:
Cost reduction: Many DSM and energy efficiency efforts have been introduced in the context
of integrated resource planning and aimed at reducing total costs of meeting energy demand;
Environmental and social improvement: energy efficiency and DSM may be pursued to
achieve environmental and/or social goals by reducing energy use, leading to reduced
greenhouse gas emissions;
Reliability and network issues: ameliorating and/or averting problems in the electricity
network through reducing demand in ways which maintain system reliability in the immediate
term and over the longer term defer the need for network augmentation;
Improved markets: short-term responses to electricity market conditions (“demand
response”), particularly by reducing load during periods of high market prices caused by
reduced generation or network capacity.
Objectives of the DSM are:

 To introduce the concept of demand-side management for residential, commercial
and industrial energy users.
 To give an overview of the different types of demand-side measures.
 To show how housekeeping and preventative maintenance in commerce and industry
can be used to reduce energy demand.
 To describe energy auditing and routine data collection and monitoring, and to
indicate their benefits.
 To outline information dissemination on demand-side management.
 To provide an overview of the major implementation challenges for DSM
Programmes.
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 To avoid the need for power cuts and rolling blackouts.

 Promote energy awareness to customers and to educate them.
Benefits of Demand Side Management

DSM results in low peak demand on power plant by saving of electricity, ultimately
advantageous to consumers and utility
 Enhances the national energy security by reducing the dependency on expensive
import of fuels
 With better usage of existing generating and distribution infrastructure, postpone the
construction of new power plant.
 Less efficient/environmentally unfriendly generating capacity can be
decommissioned.
 Load can be matched to variable renewable energy availability.
 Lower generating and transmission costs.
 Lower transmission and distribution losses.
 Reduction in “spinning reserve” costs.
 Less intrusive load shedding.
 More consumer growth capacity.
 Provides better maintenance opportunities.
 More availability (less black-outs) improves system reliability.
 Creation of long term jobs due to new innovation and technology.
Techniques of Demand Side management:

Depending on the timing and the impact of the applied measures on the customer
process, DSM can be categorized into the following
i. Time of day Pricing
ii. Multi-utility power exchange model
iii. Direct load control
iv. Load Management
v. Load Priority Technique (LPT)
vi. Peak Clipping
vii. peak Shifting
viii. Valley Filling
ix. Strategic Conversion
x. Flexible load shape
i. Time-of-Day (TOD) / Time of Use (TOU) pricing model:

As the name implies, these rates vary according to the time of day. It is widely
recognized that the cost of producing electricity varies from hour to hour. This conclusion
holds true under virtually any method of calculating costs. The most significant type of cost is
marginal cost. The marginal cost of producing electricity varies widely, depending upon the
total load and the particular generating units used to serve this load. The theory behind time-
of-day rates is simply to vary the price of electricity in accordance with fluctuations in
production costs. When the cost of production is high, the price would also be high.
Conversely, when the cost of production is low, the price would be low. Time-of-day pricing
is actually a special case of marginal cost pricing. Since marginal cost theory suggests that
prices should be equal to marginal costs, and marginal costs vary from hour to hour, the price
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of electricity should logically vary from hour to hour. The efficiency advantages of such a
pricing system are readily apparent.
In theory, marginal cost pricing can be applied with a high degree of exactness: a
different price is charged every hour, depending upon the marginal costs of the system. In
fact, many utilities use this type of pricing system when they interchange power with other
utilities. The actual marginal costs of the selling utility are calculated for each hour when the
power is interchanged; this rate is used as the price charged the purchasing utility.
Realistically, such a pricing system cannot be applied to all customers, even though it is
theoretically possible. When two utilities interchange power, a rather substantial amount of
electricity is normally involved. Thus, the transaction cost of calculating the bill under such a
complicated pricing system is small, relative to the total value of the transaction. But if the
transaction costs per KWH are very high for small customers, a complicated pricing system
would not be appropriate. Furthermore, utilities are fairly sophisticated consumers of
electricity. When they purchase power from another system, they presumably have the
knowledge and the time commitment to make wise purchasing decisions, even under a
pricing system which varies hourly. obviously, most small residential and commercial
customers lack the time and knowledge to constantly monitor their usage of electricity under
highly variable conditions. Finally, implementation of such a pricing structure would require
relatively expensive metering equipment, like magnetic recording. Hence, metering costs
would undoubtedly be prohibitive for very small customers, although a more simplified price
structure may be feasible.
Example:
To illustrate, there are two customers who are the same in every way except for their
consumption patterns. The first customer only uses electricity late at night when the marginal
costs of production are very low, like 1 cent per KWH; the second customer only uses
electricity at the peak usage hours of the day when the marginal costs of production are very
high, like 10 cents per KWH. Given their usage, it is hardly fair to charge them same price.
Under a time-ofday pricing system, this inequity can be corrected because the nocturnal user
is charged less than the peak-hour consumer.
ii. Multi-utility power exchange model
Multi-utility relates to companies offering a wide range of services and/or products.
In the business market, this type of service provision usually relates to energy, environmental
services, waste issues, infrastructure and/or telecom services. In the consumer market, it
often concerns a combined offering of services in the field of energy and digital products and
services (telephony, internet and television).
Providers like these are also referred to as multi-service providers. So it often concerns
services and products in relation to public utilities. Multi-utility has a relation with cross-
selling, offering complementary products and services.
In a multiple (multi-utility or multi-country) integrated system setting, each integrated
system “speaks” with its neighbour in terms of spot prices at their common borders; they buy
or sell energy at the spot price of the specific instant and location. The resulting operating
point is the same as the one achieved under a fully centralized dispatch. When dispatching
the utilities, the control centre associated to each system must not discriminate between its
own generators’ power and power offered by the neighboring systems through tie-lines,
except for economic reasons.
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Multi utility become very popular amongst power companies in the 90’s. As a
consequence of liberalization of the energy market, these companies were looking for
opportunities to widen their product range.
The power exchange is an institution which is created by a regulatory framework whose main
objectives are to employ and run competitive auctions of energy on a non-discriminatory
basis and to ensure electricity supply at market prices. It is the counter party in every purchase
and sale transaction, it manages the settlement process and establishes guarantees. It doesn’t
enter in to any transaction its own, as it is privy to sensitive information.
iii. Direct load control:

Direct load control (DLC) programs refer to programs in which a utility or system
operator remotely shuts down or cycles a customer’s electrical equipment on short notice to
address system or local reliability contingencies in exchange for an incentive payment or bill
credit. DLC programs are typically implemented for residential or commercial customers.
They also limit the number of times or hours that the customer’s appliance can be turned off
per year or season.
The cost benefit of DLC includes:
 Power system production cost saving
 Power system generation capacity cost saving
 Power system loss reduction
iv. Load Management:
Def: Load management is defined as the process of balancing the supply of electricity
on the network with the electrical load, by adjusting or controlling the load rather than
controlling power station output.
The importance of load management has increasing worldwide. In developing
countries, it meets the gap between power demand and availability.
Since electrical power form of energy that must be generated, distributed and consumed
immediately because it cannot be effectively stored in bulk. When the load on the system
approaches the maximum generating capacity, network operators must either find additional
supplies of energy or find ways to curtail the load, hence load management.
The load management process involve controlling system loads by remote control of
individual customer loads. Such control includes supressing or biasing automatic control of
cycling loads as well as load switching. Load management can also have affected by including
customers to supress loads during utility selected daily periods by means of time rate
incentives. Such activities are called Demand Side Management (DSM)
Load management can be achieved by the following manner:
 By suppressing the loads at peak times or encourage energy consumption at off peak
time
 By minimizing the requirement for costlier power generation
 By relieving the consequences of significant loss of generation
 By reducing the cold load pickup during energization of circuits using devices with cold
load pickup features.
Benefits of load management:
Customer benefits-
Satisfy electricity demand/ growth
Reduces electricity bills
Improve value of service
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Improve life style

Societal benefits-
Reduces environmental impacts
Maximize customer welfare
Conserve resources
Utility benefits-
Reduce capital needs
Lower cost of service
Improve efficiency and grid reliability
Reduce line losses
v. Load Priority Technique (LPT):
o Load priority technique works on individual loads priority for operation. This is mainly
influenced by the production schedule. Load priorities could also be connected
directly with the rate communication system (i.e. differential tariff system).
o In developing load priority technique loads are classified as
 Non- interruptible loads
 Interpretable loads
o Non interruptible loads are the high priority loads and interruptible loads are classified
as less priority loads.
o The priorities are assigned to the loads in discussion with the respective section
supervisors giving immense importance to the production schedule. Two priority lists
are prepared as
 Priority for switching ON
 Priority for switching OFF
o The load demand on the industry is continuously monitored at accepted time
intervals. If the demand exceeds beyond the permitted limit then the ‘low priority
loads’ to the extent of exceeded value of loads are cut- off.
o If the load demand is less than the permitted limit then the loads which were
interrupted in the previous time slots were switched on based on the ‘priority for
switching ON’.
o The success of load priority is totally dependent on the development of various load
priorities for operation which will not disturb the production schedule and gives
enough scope for reduction of load demand.
o This DSM alternative creates possibilities for the consumers to reduce peaks and fill
out valleys in their load curves results in almost flat load curves.
o It also helps to maintain customer lifestyle by reducing the unscheduled outages.
o As there is a strict control over the maximum demand it avoids paying maximum
demand penalty for the customers.
Load priority techniques are classified in to 3 types
a) Direct load control technique
 Utility control the consumer’s load without any interaction.
 Eg. Power line carrier or ripple control system (using in Europe)
b) Local load control technique
 Consumer control the load
 One method is to have a circuit breaker at the consumer premises
 When the load exceed the predetermined value circuit breaker will operate
and supply is switched off
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c)Distributed control technique

 In this techniques consumer control their load in communication with
utilities.
 Applicable for large industrial consumer.
 They have special contract such as interruptible load.
vi. Peak Clipping:

 Peak clipping refers to the reduction of peak loads.
 It is generally considered as the reduction of peak
load by means of direct load control.
 Direct load control is mostly practiced by direct
utility control of customer appliances.
 This can be achieved by the use of interruptible
rates for large industrial and commercial customers
and results in decrease in energy demand.
 Peal clipping is used to reduce capital investment
charges, operational charges and decrease in high
cost critical fuels.
 The main objective of peak clipping is to match the available generation capacity with
demand without additional generation
vii. Peak Shifting

 Peak shifting involves shifting load from on- peak to
off- peak periods
 Customers are encouraged to shift their loads by
methods such as Time of Use (TOU) rates.
 Some customers respond to TOU rates by changing
their modes of operation such as by having two work
shifts instead of one and there by spreading their
loads or by changing technology
 Peak shifting results in reduction in peak load but
does not necessarily cause a decrease in energy use.
viii. Valley filling

 The principle involved in valley filling is to build up
load or consume power during light load periods of
the supply system
 This results in a flatter load as seen from the supply
system.
 Hence the supplier equipment like generators,
transformers, transmission lines etc. are loaded
from 80% to 90% of their rating instead of 15 to 20%
during light loads, thus resulting in high efficiency
and lower cost of operation because of improved
load factor or energy efficiency of the system.
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xi. Strategic Conversion

 Encourage the use of alternate sources such as:
o co-generation
o use of captive generation/ stand by generation
plants
o solar energy
o encourage energy audits and offer low interest
loans
 Strategic conversion is the load shape change which
results from utility program directed at reducing
electricity end use consumption
 The change involves a reduction in sales not necessarily accompanied by a reduction in
peak
 Example of strategic conversion include the promotion of energy efficiency building
standards and appliance efficiency improvement.
 The successful implementation of strategic programs usually requires a greater
knowledge on the part of utility concerning customer behaviour, as well as cooperation
from manufacturers government agencies and
professional organizations.
x. Flexible load shape

 The utility is allowed to adjust the load shape to meet the
reliability constraints.
 The consumers are given incentives for reduced level of
service.
Energy Efficient Equipment:

Energy efficient means “using less energy to provide same service”. When you replace an
appliance, such as a refrigerator or clothes washer, or office equipment, such as a computer
or printer, with a more energy-efficient model, the new equipment provides the same service,
but uses less energy. This saves you money on your energy bill, and reduces the amount of
greenhouse gases going into the atmosphere.
Energy efficiency is not energy conservation. Energy conservation is reducing or going
without a service to save energy. For example: Turning off a light is energy conservation.
Replacing an incandescent lamp with a compact fluorescent lamp (which uses much less
energy to produce the same amount of light) is energy efficiency.
Some Energy efficient equipment are
i. Maximum demand controller
Preset Value of maximum demand is programmed in the device. If the maximum
demand approaches the preset value alarm is sounded/ Indicator. It can be implemented by
using a suitable controller.
ii. Automatic power factor controller
Using relay/microprocessor logic. They are mainly two types as Voltage control & KVAR
control
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(a) Voltage control

Check the voltage drop when load is applied. Less voltage drop supporting for
leading power factor. Suitable at substation
(b) KVAR control
Current & voltage sense from the feeder & processed by using microprocessor.
Sensitive control, where voltage variation isn’t available.
iii. Variable speed drives
Speed control of induction motors- Speed can vary by using voltage, varying rotor
resistance, Scherbius or Kramer drives etc. Variable frequency drives- Control the speed by
changing the frequency & V/f control.
iv. Energy efficient transformer
Use Amorphous core material- metallic glass alloy. They have less heat/vibration
losses. They have reduced hysteresis losses.
v. Electronic Ballast
Ballast act as the choke. It acts as auxiliary circuit for starting of fluorescent lamp.
Replace normal ballast with electronic ballast conserves energy.
Q) Discuss energy management and organization of energy conservation awareness
program.
Energy management:
The sensible and effective use of energy to maximize profits (minimize costs) and enhance
competitive positions is called energy management. Energy management is one of the most
promising profit improvement cost reduction programs available today.
Objectives of Energy Management:
The primary objective of energy management is to maximize profits or minimize costs. Some
desirable sub objectives of energy management programs include:
1. Improving energy efficiency and reducing energy use, thereby reducing costs.
2. Cultivating good communications on energy matters.
3. Developing and maintaining effective monitoring, reporting, and management strategies
for wise energy usage.
4. Finding new and better ways to increase returns from energy investments through research
and development
5. Developing interest in and dedication to the energy management program from all
employees
Organizing Energy Conservation Awareness Program:

Energy Conservation in any organization should be everyone’s responsibility as
everyone uses energy directly (Operating machine) or indirectly (Occupying the facility space)
to do his or her work. Many a time it is misunderstood to be the responsibility of only
operation and maintenance people of the facility. It becomes more complicated in smaller
facility where there is no dedicated operation and maintenance staff. Ideally speaking energy
conservation in any facility should be a Top-Down approach with management initiatives.
Unfortunately, it does not happen particularly in smaller organizations operating with
budgetary constraint.
Energy conservation is not only supportive to operational excellence and relief to
operational budget at the operating end but also helps us in preserving the natural resources
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and reducing greenhouse gasses emission. Therefore, it will have an impact on operations,
expenditure and performance. Efficient utilization of energy makes the machines more
efficient and an efficient machine gives better performance. Machines operating efficiently
under less duress will have fewer breakdowns, which translate into more output with better
energy intensity. Overall, an efficient operation will not only create a safe work environment
but will also help in grooming a motivated workforce striving for economical operations.
The energy management program structure in an organization is shown below
Most successful organizations and individuals set goals, develop plans to meet them
and continually monitor their progress. To put together a plan that will work for the unique
requirements of your company, follow these six easy steps:
Step 1: Establish a clear vision- Create goals that are specific, measurable, attainable, realistic
and trackable ("SMART").
Step 2: Create the team- Appoint an energy champion who will develop the plan, obtain
approval to proceed, build your team and manage implementation. Build your team to
include decision makers as well as a diverse group that represents your workplace.
Step 3: Know your workplace- Figure out who are your target audiences to determine the
tools you will use to communicate with them. Consider the audience’s size, where it's located
and whether it is located in multiple facilities.
Step 4: Develop your communications plan- Identify and document what you need to say to
your employees, and how to say it. Define your key messages; choose a communications style
that is consistent with that used in your organization, and then list out the activities, schedule
and budget you’ll need to make your plan work.
Step 5: Implement your plan- Educate your employees/occupants/students in energy-
conserving habits and behaviours. Deliver the activities you and your team have selected.
Monitor the program and its effects, and lead by example.
Step 6: Recognize and reward- Reward those who have contributed to achieving your goals.
Annual programs can help remind your employees and occupants of their energy-saving
habits and accomplishments.
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Unit V Economics and Cost Effectiveness Tests of DSM Programs
THE TIME VALUE OF MONEY CONCEPT:

To compare energy utilization alternatives, it is necessary to convert all cash flow for
each measure to an equivalent base. The life-cycle cost analysis takes into account the “time
value” of money; thus a rupee in hand today is more valuable than one received at some time
in the future. It is on this concept “the time value of money” is based. This is why a time value
must be placed on all cash flows into and out of the company. The recognition of the time
value of money and risk is extremely vital in financial decision making.
Money has time value because of the following reasons:
1. Risk and Uncertainty: Future is always uncertain and risky. Outflow of cash is in our control
as payments to parties are made by us. There is no certainty for future cash inflows. Cash
inflows is dependent out on our Creditor, Bank etc. As an individual or firm is not certain about
future cash receipts, it prefers receiving cash now.
2. Inflation: In an inflationary economy, the money received today, has more purchasing
power than the money to be received in future. In other words, a rupee today represents a
greater real purchasing power than a rupee a year hence.
3. Consumption: Individuals generally prefer current consumption to future consumption.
4. Investment opportunities: An investor can profitably employ a rupee received today, to
give him a higher value to be received tomorrow or after a certain period of time.
In this concept, the interest earned on the initial principal amount becomes a part of
the principal at the end of the compounding period.
There are two techniques for adjusting time value of money. They are:
i. Compounding Techniques/Future Value Techniques
ii. Discounting/Present Value Techniques
The value of money at a future date with a given interest rate is called future value.
Similarly, the worth of money today that is receivable or payable at a future date is called
Present Value.
i. Compounding Techniques/Future Value Technique:
In this concept, the interest earned on the initial principal amount becomes a part of the
principal at the end of the compounding period.
FOR EXAMPLE: Suppose you invest Rs. 1000 for three years in a saving account that pays 10
per cent interest per year. If you let your interest income be reinvested, your investment will
grow as follows:
First year: Principal at the beginning Rs. 1,000
Interest for the year (Rs. 1,000 × 0.10) 100
Principal at the end Rs. 1,100
Second year: Principal at the beginning Rs. 1,100
Interest for the year (Rs. 1,100 × 0.10) 110
Principal at the end Rs. 1210
Third year: Principal at the beginning Rs. 1210
Interest for the year (Rs. 1210 × 0.10) 121
Principal at the end Rs. 1331
This process of compounding will continue for an indefinite time period. The process
of investing money as well as reinvesting interest earned there on is called Compounding. But
the way it has gone about calculating the future value will prove to be cumbersome if the
future value over long maturity periods of 20 years to 30 years is to be calculated. A
generalized procedure for calculating the future value of a single amount compounded
annually is as follows:
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Formula: FVn = PV(1 + r)n

In this equation (1 + r)n is called the future value interest factor (FVIF).
Where, FVn = Future value of the initial flow n year hence
PV = Initial cash flow
r = Annual rate of Interest
n = number of years
FUTURE VALUE OF MULTIPLE CASH FLOWS is,
The transactions in real life are not limited to one. An investor investing money in instalments
may wish to know the value of his savings after ‘n’ years.
𝑟
𝐹𝑉𝑛 = (1 + )
𝑚
Where FVn = Future value after ‘n’ years
PV = Present value of money today
r = Interest rate
m = Number of times compounding is done in a year.
The formulae to calculate the Effective Interest Rate is
𝑟 𝑚
𝐸𝐼𝑅 = (1 + ) − 1
𝑚
Where EIR = Effective Rate of Interest
r = Nominal Rate of Interest (Yearly Interest Rate)
m = Frequency of compounding per year
ii. DISCOUNTING OR PRESENT VALUE CONCEPT:
Present value is the exact opposite of future value. The present value of a future cash inflow
or outflow is the amount of current cash that is of equivalent value to the decision maker.
The process of determining present value of a future payment or receipts or a series of future
payments or receipts is called discounting. The compound interest rate used for discounting
cash flows is also called the discount rate.
𝐹𝑉
PV= (1+𝑟)𝑛 𝑛
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Chapter 2
Participant Test
Definition
The Participants Test is the measure of the quantifiable benefits and costs to the customer due
to participation in a program. Since many customers do not base their decision to participate in
a program entirely on quantifiable variables, this test cannot be a complete measure of the
benefits and costs of a program to a customer.
Benefits and Costs

The benefits of participation in a demand-side program include the reduction in the customer's
utility bill(s), any incentive paid by the utility or other third parties, and any federal, state, or
local tax credit received. The reductions to the utility bill(s) should be calculated using the actual
retail rates that would have been charged for the energy service provided (electric demand or
energy or gas). Savings estimates should be based on gross savings, as opposed to net energy
savings1 .
In the case of fuel substitution programs, benefits to the participant also include the avoided
capital and operating costs of the equipment/appliance not chosen. For load building programs,
participant benefits include an increase in productivity and/or service, which is presumably equal
to or greater than the productivity/ service without participating. The inclusion of these benefits
is not required for this test, but if they are included then the societal test should also be
performed.
The costs to a customer of program participation are all out-of-pocket expenses incurred as a
result of participating in a program, plus any increases in the customer's utility bill(s). The out-
of-pocket expenses include the cost of any equipment or materials purchased, including sales
tax and installation; any ongoing operation and maintenance costs; any removal costs (less
salvage value); and the value of the customer's time in arranging for the installation of the
measure, if significant.
1
Gross energy savings are considered to be the savings in energy and demand seen by the participant at the
meter. These are the appropriate program impacts to calculate bill reductions for the Participant Test. Net
savings are assumed to be the savings that are attributable to the program. That is, net savings are gross savings
minus those changes in energy use and demand that would have happened even in the absence of the program.
For fuel substitution and load building programs, gross-to-net considerations account for the impacts that would
have occurred in the absence of the program.
8
How the Results can be Expressed
The results of this test can be expressed in four ways: through a net present value per average
participant, a net present value for the total program, a benefit-cost ratio or discounted payback.
The primary means of expressing test results is net present value for the total program;
discounted payback, benefit-cost ratio, and per participant net present value are secondary tests.
The discounted payback is the number of years it takes until the cumulative discounted benefits
equal or exceed the cumulative discounted costs. The shorter the discounted payback, the more
attractive or beneficial the program is to the participants. Although "payback period" is often
defined as undiscounted in the textbooks, a discounted payback period is used here to
approximate more closely the consumer's perception of future benefits and costs.2
Net present value (NPVp) gives the net dollar benefit of the program to an average participant or
to all participants discounted over some specified time period. A net present value above zero
indicates that the program is beneficial to the participants under this test.
The benefit-cost ratio (BCRp) is the ratio of the total benefits of a program to the total costs
discounted over some specified time period. The benefit-cost ratio gives a measure of a rough
rate of return for the program to the participants and is also an indication of risk. A benefit-cost
ratio above one indicates a beneficial program.
Strengths of the Participant Test

The Participants Test gives a good "first cut" of the benefit or desirability of the program to
customers. This information is especially useful for voluntary programs as an indication of
potential participation rates.
For programs that involve a utility incentive, the Participant Test can be used for program design
considerations such as the minimum incentive level, whether incentives are really needed to
induce participation, and whether changes in incentive levels will induce the desired amount of
participation.
These test results can be useful for program penetration analyses and developing program
participation goals, which will minimize adverse ratepayer impacts and maximize benefits.
For fuel substitution programs, the Participant Test can be used to determine whether program
participation (i.e. choosing one fuel over another) will be in the long-run best interest of the
customer. The primary means of establishing such assurances is the net present value, which
looks at the costs and benefits of the fuel choice over the life of the equipment.
Weaknesses of the Participant Test

None of the Participant Test results (discounted payback, net present value, or benefit-cost ratio)
accurately capture the complexities and diversity of customer decision-making processes for
demand-side management investments. Until or unless more is known about customer attitudes
and behavior, interpretations of Participant Test results continue to require considerable
2
It should be noted that if a demand-side program is beneficial to its participants (NPVp > 0 and BCRp > 1.0)
using a particular discount rate, the program has an internal rate of return (IRR) of at least the value of the
discount rate.
9
judgment. Participant Test results play only a supportive role in any assessment of conservation
and load management programs as alternatives to supply projects.
Formulae
The following are the formulas for discounted payback, the net present value (NPVp) and the
benefit-cost ratio (BCRp) for the Participant Test.
NPVP = Bp - Cp
NPVavp = (Bp - Cp) / P
BCRp = Bp / Cp
DPp = Min j such that Bj > Cj
Where:
NPVp = Net present value to all participants

NPVavp = Net present value to the average participant
BCRp = Benefit-cost ratio to participants
DPp = Discounted payback in years
Bp = NPV of benefit to participants
Cp = NPV of costs to participants
Bj = Cumulative benefits to participants in year j
Cj = Cumulative costs to participants in year j
P = Number of program participants
J = First year in which cumulative benefits are cumulative costs.
d = Interest rate (discount)
The Benefit (Bp) and Cost (Cp) terms are further defined as follows:
N
BRt + TC t + INC t N
ABat + PAat
BP = ∑ + ∑
t =1 (1 + d ) t −1 t =1 (1 + d ) t −1
N
PC t + BI t
C=∑
t =1 (1 + d ) t −1
Where:
BRt = Bill reductions in year t

Bit = Bill increases in year t
TCt = Tax credits in year t
INCt = Incentives paid to the participant by the sponsoring utility in year t3
PCt = Participant costs in year t to include:
• Initial capital costs, including sales tax4
3
Some difference of opinion exists as to what should be called an incentive. The term can be interpreted broadly
to include almost anything. Direct rebates, interest payment subsidies, and even energy audits can be called
incentives. Operationally, it is necessary to restrict the term to include only dollar benefits such as rebates or
rate incentives (monthly bill credits). Information and services such as audits are not considered incentives for
the purposes of these tests. If the incentive is to offset a specific participant cost, as in a rebate-type incentive,
the full customer cost (before the rebate must be included in the PCt term
10
• Ongoing operation and maintenance costs include fuel cost
• Removal costs, less salvage value
• Value of the customer's time in arranging for installation, if
significant
PACat = Participant avoided costs in year t for alternate fuel devices (costs of
devices not chosen)
Abat = Avoided bill from alternate fuel in year t
The first summation in the Bp equation should be used for conservation and load management
programs. For fuel substitution programs, both the first and second summations should be used
for Bp.
Note that in most cases, the customer bill impact terms (BRt, BIt, and ABat) are further
determined by costing period to reflect load impacts and/or rate schedules, which vary
substantially by time of day and season. The formulas for these variables are as follows:
I I
BRt = ∑ (∆EGit × AC : E it × K it ) + ∑ (∆DGit × AC : Dit × K it ) + OBRt
i =1 i =1
ABat = (Use BRt formula, but with rates and costing periods appropriate for the alternate
fuel utility)
I I
BI t = ∑ (∆EGit × AC : E it × ( K it − 1)) + ∑ (∆DGit × AC : Dit × ( K it − 1)) + OBI t
i =1 i =1
Where:
∆EGit = Reduction in gross energy use in costing period i in year t
∆DG it = Reduction in gross billing demand in costing period i in year t
AC:Eit = Rate charged for energy in costing period i in year t
AC:Dit = Rate charged for demand in costing period i in year t
Kit = 1 when ∆EGit or ∆DGit is positive (a reduction) in costing period i in
year t, and zero otherwise
OBRt = Other bill reductions or avoided bill payments (e.g.,, customer charges,
standby rates).
OBIt = Other bill increases (i.e. customer charges, standby rates).
I = Number of periods of participant’s participation
In load management programs such as TOU rates and air-conditioning cycling, there are often
no direct customer hardware costs. However, attempts should be made to quantify indirect
costs customers may incur that enable them to take advantage of TOU rates and similar
programs.
4
If money is borrowed by the customer to cover this cost, it may not be necessary to calculate the annual
mortgage and discount this amount if the present worth of the mortgage payments equals the initial cost. This
occurs when the discount rate used is equal to the interest rate of the mortgage. If the two rates differ (e.g., a
loan offered by the utility), then the stream of mortgage payments should be discounted by the discount rate
chosen.
11
If no customer hardware costs are expected or estimates of indirect costs and value of service
are unavailable, it may not be possible to calculate the benefit-cost ratio and discounted payback
period.
12
Chapter 3
The Ratepayer Impact Measure Test5
Definition
The Ratepayer Impact Measure (RIM) test measures what happens to customer bills or rates
due to changes in utility revenues and operating costs caused by the program. Rates will go
down if the change in revenues from the program is greater than the change in utility costs.
Conversely, rates or bills will go up if revenues collected after program implementation are less
than the total costs incurred by the utility in implementing the program. This test indicates the
direction and magnitude of the expected change in customer bills or rate levels.
Benefits and Costs

The benefits calculated in the RIM test are the savings from avoided supply costs. These
avoided costs include the reduction in transmission, distribution, generation, and capacity costs
for periods when load has been reduced and the increase in revenues for any periods in which
load has been increased. The avoided supply costs are a reduction in total costs or revenue
requirements and are included for both fuels for a fuel substitution program. The increase in
revenues are also included for both fuels for fuel substitution programs. Both the reductions in
supply costs and the revenue increases should be calculated using net energy savings.
The costs for this test are the program costs incurred by the utility, and/or other entities
incurring costs and creating or administering the program, the incentives paid to the
participant, decreased revenues for any periods in which load has been decreased and increased
supply costs for any periods when load has been increased. The utility program costs include
initial and annual costs, such as the cost of equipment, operation and maintenance, installation,
program administration, and customer dropout and removal of equipment (less salvage value).
The decreases in revenues and the increases in the supply costs should be calculated for both
fuels for fuel substitution programs using net savings.
How the Results can be Expressed

The results of this test can be presented in several forms: the lifecycle revenue impact (cents or
dollars) per kWh, kW, therm, or customer; annual or first-year revenue impacts (cents or dollars
per kWh, kW, therms, or customer); benefit-cost ratio; and net present value. The primary units
of measurement are the lifecycle revenue impact, expressed as the change in rates (cents per
kWh for electric energy, dollars per kW for electric capacity, cents per therm for natural gas)
and the net present value. Secondary test results are the lifecycle revenue impact per customer,
first-year and annual revenue impacts, and the benefit-cost ratio. LRIRIM values for programs
affecting electricity and gas should be calculated for each fuel individually (cents per kWh or
dollars per kW and cents per therm) and on a combined gas and electric basis (cents per
customer).
5
The Ratepayer Impact Measure Test has previously been described under what was called the "Non-Participant
Test." The Non-Participant Test has also been called the "Impact on Rate Levels Test."
13
The lifecycle revenue impact (LRI) is the one-time change in rates or the bill change over the life
of the program needed to bring total revenues in line with revenue requirements over the life of
the program. The rate increase or decrease is expected to be put into effect in the first year of
the program. Any successive rate changes such as for cost escalation are made from there. The
first-year revenue impact (FRI) is the change in rates in the first year of the program or the bill
change needed to get total revenues to match revenue requirements only for that year. The
annual revenue impact (ARI) is the series of differences between revenues and revenue
requirements in each year of the program. This series shows the cumulative rate change or bill
change in a year needed to match revenues to revenue requirements. Thus, the ARIRIM for year
six per kWh is the estimate of the difference between present rates and the rate that would be in
effect in year six due to the program. For results expressed as lifecycle, annual, or first-year
revenue impacts, negative results indicate favorable effects on the bills of ratepayers or
reductions in rates. Positive test result values indicate adverse bill impacts or rate increases.
Net present value (NPVRIM) gives the discounted dollar net benefit of the program from the
perspective of rate levels or bills over some specified time period. A net present value above zero
indicates that the program will benefit (lower) rates and bills.
The benefit-cost ratio (BCR RIM) is the ratio of the total benefits of a program to the total costs
discounted over some specified time period. A benefit-cost ratio above one indicates that the
program will lower rates and bills.
Strengths of the Ratepayer Impact Measure (RIM)

Test
In contrast to most supply options, demand-side management programs cause a direct shift in
revenues. Under many conditions, revenues lost from DSM programs have to be made up by
ratepayers. The RIM test is the only test that reflects this revenue shift along with the other
costs and benefits associated with the program.
An additional strength of the RIM test is that the test can be used for all demand-side
management programs (conservation, load management, fuel substitution, and load building).
This makes the RIM test particularly useful for comparing impacts among demand-side
management options.
Some of the units of measurement for the RIM test are of greater value than others, depending
upon the purpose or type of evaluation. The lifecycle revenue impact per customer is the most
useful unit of measurement when comparing the merits of programs with highly variable scopes
(e.g.,, funding levels) and when analyzing a wide range of programs that include both electric
and natural gas impacts. Benefit-cost ratios can also be very useful for program design
evaluations to identify the most attractive programs or program elements.
If comparisons are being made between a program or group of conservation/load management

programs and a specific resource project, lifecycle cost per unit of energy and annual and first-
year net costs per unit of energy are the most useful way to express test results. Of course, this
requires developing lifecycle, annual, and first-year revenue impact estimates for the supply-side
project.
Weaknesses of the Ratepayer Impact Measure (RIM)

Test
14
Results of the RIM test are probably less certain than those of other tests because the test is
sensitive to the differences between long-term projections of marginal costs and long-term
projections of rates, two cost streams that are difficult to quantify with certainty.
RIM test results are also sensitive to assumptions regarding the financing of program costs.
Sensitivity analyses and interactive analyses that capture feedback effects between system
changes, rate design options, and alternative means of financing generation and non-generation
options can help overcome these limitations. However, these types of analyses may be difficult
to implement.
An additional caution must be exercised in using the RIM test to evaluate a fuel substitution
program with multiple end use efficiency options. For example, under conditions where
marginal costs are less than average costs, a program that promotes an inefficient appliance may
give a more favorable test result than a program that promotes an efficient appliance. Though
the results of the RIM test accurately reflect rate impacts, the implications for long-term
conservation efforts need to be considered.
Formulae: The formulae for the lifecycle revenue impact (LRI RIM)' net present value (NPV
RIM), benefit-cost ratio (BCR RIM)' the first-year revenue impacts and annual revenue impacts
are presented below:
LRIRIM = (CRIM - BRIM) / E

FRIRIM = (CRIM - BRIM) / E for t = I
ARIRIMt = FRIRIM for t = I
= (CRIMt - BRIMt )/Et for t=2, ………….., N
NPVRIM = BRIM-CRIM
BCRRIM` = BRIM/CRIM where:
LRIRIM = Lifecycle revenue impact of the program per unit of energy (kWh or therm)
or demand (kW) (the one-time change in rates) or per customer (the change
in customer bills over the life of the program). (Note: An appropriate choice
of kWh, therm, kW, and customer should be made)
FRIRIM = First-year revenue impact of the program per unit of energy, demand, or per
customer.
ARIRIM = Stream of cumulative annual revenue impacts of the program per unit of
energy, demand, or per customer. (Note: The terms in the ARI formula are
not discounted; thus they are the nominal cumulative revenue impacts.
Discounted cumulative revenue impacts may be calculated and submitted if
they are indicated as such. Note also that the sum of the discounted stream of
cumulative revenue impacts does not equal the LRI RIM')
NPVRIM = Net present value levels
BCRRIM = Benefit-cost ratio for rate levels
BRIM = Benefits to rate levels or customer bills

CRIM = Costs to rate levels or customer bills
E = Discounted stream of system energy sales (kWh or therms) or demand sales
(kW) or first-year customers. (See Appendix D for a description of the
derivation and use of this term in the LRIRIM test.)
15
The BRIM and CRIM terms are further defined as follows:
N UAC t + RGt N
UAC at
B RIM ∑ +∑
t =1 (1 + d ) t −1
t =1 (1 + d ) t −1
N
UIC t + RLt + PRC t + INC t N RLat
C RIM ∑ +∑
t =1 (1 + d ) t −1 t =1 (1 + d )
t −1
N
Et
E=∑
t =1 (1 + d ) t −1
Where:
UACt = Utility avoided supply costs in year t
UICt = Utility increased supply costs in year t
RGt = Revenue gain from increased sales in year t
RLt = Revenue loss from reduced sales in year t
PRCt = Program Administrator program costs in year t
Et = System sales in kWh, kW or therms in year t or first year customers
UACat = Utility avoided supply costs for the alternate fuel in year t
Rlat = Revenue loss from avoided bill payments for alternate fuel in year t (i.e.,
device not chosen in a fuel substitution program)
For fuel substitution programs, the first term in the B RIM and C RIM equations represents the
sponsoring utility (electric or gas), and the second term represents the alternate utility. The RIM
test should be calculated separately for electric and gas and combined electric and gas.
The utility avoided cost terms (UACt, UICt, and UACat) are further determined by costing
period to reflect time-variant costs of supply:
I I
UCAt = ∑ (∆EN it × MC : E it × K it ) + ∑ (∆DN it × MC : Dit × K it )
i =1 i =1
UACat = (Use UACt formula, but with marginal costs and costing periods appropriate for
the alternate fuel utility.)
I I
UIC t ∑ (∆EN it × MC : E it × ( K it − 1)) + ∑ (∆DN it × MC : D × ( K it − 1))
i =1 i =1
Where:
[Only terms not previously defined are included here.]

∆ENit = Reduction in net energy use in costing period i in year t
∆DNit = Reduction in net demand in costing period i in year t
MC:Eit = Marginal cost of energy in costing period i in year t
MC:Dit = Marginal cost of demand in costing period i in year t
16
The revenue impact terms (RGt, RLt, and RLat ) are parallel to the bill impact terms in the
Participant Test. The terms are calculated exactly the same way with the exception that the net
impacts are used rather than gross impacts. If a net-to-gross ratio is used to differentiate gross
savings from net savings, the revenue terms and the participant's bill terms will be related as
follows:
RGt = BIt * (net-to-gross ratio)

RLt = BRt * (net-to-gross ratio)
Rlat = Abat * (net-to-gross ratio)
17
Chapter 4
Total Resource Cost Test6
Definition
The Total Resource Cost Test measures the net costs of a demand-side management program as
a resource option based on the total costs of the program, including both the participants' and
the utility's costs.
The test is applicable to conservation, load management, and fuel substitution programs. For
fuel substitution programs, the test measures the net effect of the impacts from the fuel not
chosen versus the impacts from the fuel that is chosen as a result of the program. TRC test
results for fuel substitution programs should be viewed as a measure of the economic efficiency
implications of the total energy supply system (gas and electric).
A variant on the TRC test is the Societal Test. The Societal Test differs from the TRC test in
that it includes the effects of externalities (e.g.,, environmental, national security), excludes tax
credit benefits, and uses a different (societal) discount rate.
Benefits and Costs: This test represents the combination of the effects of a program on both the
customers participating and those not participating in a program. In a sense, it is the summation
of the benefit and cost terms in the Participant and the Ratepayer Impact Measure tests, where
the revenue (bill) change and the incentive terms intuitively cancel (except for the differences in
net and gross savings).
The benefits calculated in the Total Resource Cost Test are the avoided supply costs, the
reduction in transmission, distribution, generation, and capacity costs valued at marginal cost for
the periods when there is a load reduction. The avoided supply costs should be calculated using
net program savings, savings net of changes in energy use that would have happened in the
absence of the program. For fuel substitution programs, benefits include the avoided device
costs and avoided supply costs for the energy, using equipment not chosen by the program
participant.
The costs in this test are the program costs paid by both the utility and the participants plus the
increase in supply costs for the periods in which load is increased. Thus all equipment costs,
installation, operation and maintenance, cost of removal (less salvage value), and administration
costs, no matter who pays for them, are included in this test. Any tax credits are considered a
reduction to costs in this test. For fuel substitution programs, the costs also include the increase
in supply costs for the utility providing the fuel that is chosen as a result of the program.
6
This test was previously called the All Ratepayers Test
18
How the Results Can be Expressed
The results of the Total Resource Cost Test can be expressed in several forms: as a net present
value, a benefit-cost ratio, or as a levelized cost. The net present value is the primary unit of
measurement for this test. Secondary means of expressing TRC test results are a benefit-cost
ratio and levelized costs. The Societal Test expressed in terms of net present value, a benefit-
cost ratio, or levelized costs is also considered a secondary means of expressing results.
Levelized costs as a unit of measurement are inapplicable for fuel substitution programs, since
these programs represent the net change of alternative fuels which are measured in different
physical units (e.g.,, kWh or therms). Levelized costs are also not applicable for load building
programs.
Net present value (NPVTRC) is the discounted value of the net benefits to this test over a
specified period of time. NPVTRC is a measure of the change in the total resource costs due to
the program. A net present value above zero indicates that the program is a less expensive
resource than the supply option upon which the marginal costs are based.
The benefit-cost ratio (BCRTRC) is the ratio of the discounted total benefits of the program to
the discounted total costs over some specified time period. It gives an indication of the rate of
return of this program to the utility and its ratepayers. A benefit-cost ratio above one indicates
that the program is beneficial to the utility and its ratepayers on a total resource cost basis.
The levelized cost is a measure of the total costs of the program in a form that is sometimes
used to estimate costs of utility-owned supply additions. It presents the total costs of the
program to the utility and its ratepayers on a per kilowatt, per kilowatt hour, or per therm basis
levelized over the life of the program.
The Societal Test is structurally similar to the Total Resource Cost Test. It goes beyond the
TRC test in that it attempts to quantify the change in the total resource costs to society as a
whole rather than to only the service territory (the utility and its ratepayers). In taking society's
perspective, the Societal Test utilizes essentially the same input variables as the TRC Test, but
they are defined with a broader societal point of view. More specifically, the Societal Test
differs from the TRC Test in at least one of five ways. First, the Societal Test may use higher
marginal costs than the TRC test if a utility faces marginal costs that are lower than other
utilities in the state or than its out-of-state suppliers. Marginal costs used in the Societal Test
would reflect the cost to society of the more expensive alternative resources. Second, tax credits
are treated as a transfer payment in the Societal Test, and thus are left out. Third, in the case of
capital expenditures, interest payments are considered a transfer payment since society actually
expends the resources in the first year. Therefore, capital costs enter the calculations in the year
in which they occur. Fourth, a societal discount rate should be used7. Finally, Marginal costs
used in the Societal Test would also contain externality costs of power generation not captured
by the market system. An illustrative and by no means exhaustive list of ‘externalities and their
components’ is given below (Refer to the Limitations section for elaboration.) These values are
also referred to as ‘adders’ designed to capture or internalize such externalities. The list of
potential adders would include for example:
1. The benefit of avoided environmental damage: The CPUC policy specifies two ‘adders’ to
internalize environmental externalities, one for electricity use and one for natural gas use.
Both are statewide average values. These adders are intended to help distinguish between
7 Many economists have pointed out that use of a market discount rate in social cost-benefit analysis
undervalues the interests of future generations. Yet if a market discount rate is not used, comparisons with
alternative investments are difficult to make.
19
cost-effective and non cost-effective energy-efficiency programs. They apply to an average
supply mix and would not be useful in distinguishing among competing supply options.
The CPUC electricity environmental adder is intended to account for the environmental
damage from air pollutant emissions from power plants. The CPUC-adopted adder is
intended to cover the human and material damage from sulfur oxides (SOX), nitrogen
oxides (NOX), volatile organic compounds (VOC, sometimes called reactive organic gases
or ROG), particulate matter at or below 10 micron diameter (PM10), and carbon. The adder
for natural gas is intended to account for air pollutant emissions from the direct combustion
of the gas. In the CPUC policy guidance, the adders are included in the tabulation of the
benefits of energy efficiency programs. They represent reduced environmental damage
from displaced electricity generation and avoided gas combustion. The environmental
damage is the result of the net change in pollutant emissions in the air basins, or regions, in
which there is an impact. This change is the result of direct changes in powerplant or
natural gas combustion emission resulting from the efficiency measures, and changes in
emissions from other sources, that result from those direct changes in emissions.
2. The benefit of avoided transmission and distribution costs – energy efficiency measures that
reduce the growth in peak demand would decrease the required rate of expansion to the
transmission and distribution network, eliminating costs of constructing and maintaining
new or upgraded lines.
3. The benefit of avoided generation costs – energy efficiency measures reduce consumption
and hence avoid the need for generation. This would include avoided energy costs, capacity
costs and T&D line
4. The benefit of increased system reliability: The reductions in demand and peak loads from
customers opting for self generation, provide reliability benefits to the distribution system in
the forms of:
a. Avoided costs of supply disruptions
b. Benefits to the economy of damage and control costs avoided by customers and
industries in the digital economy that need greater than 99.9 level of reliable electricity
service from the central grid
c. Marginally decreased System Operator’s costs to maintain a percentage reserve of
electricity supply above the instantaneous demand
d. Benefits to customers and the public of avoiding blackouts.
5. Non-energy benefits: Non-energy benefits might include a range of program-specific
benefits such as saved water in energy-efficient washing machines or self generation units,
reduced waste streams from an energy-efficient industrial process, etc.
6. Non-energy benefits for low income programs: The low income programs are social
programs which have a separate list of benefits included in what is known as the ‘low
income public purpose test’. This test and the sepcific benefits associated with this test are
outside the scope of this manual.
7. Benefits of fuel diversity include considerations of the risks of supply disruption, the effects
of price volatility, and the avoided costs of risk exposure and risk management.
Strengths of the Total Resource Cost Test

The primary strength of the Total Resource Cost (TRC) test is its scope. The test includes total
costs (participant plus program administrator) and also has the potential for capturing total
benefits (avoided supply costs plus, in the case of the societal test variation, externalities). To the
20
extent supply-side project evaluations also include total costs of generation and/or transmission,
the TRC test provides a useful basis for comparing demand- and supply-side options.
Since this test treats incentives paid to participants and revenue shifts as transfer payments
(from all ratepayers to participants through increased revenue requirements), the test results are
unaffected by the uncertainties of projected average rates, thus reducing the uncertainty of the
test results. Average rates and assumptions associated with how other options are financed
(analogous to the issue of incentives for DSM programs) are also excluded from most supply-
side cost determinations, again making the TRC test useful for comparing demand-side and
supply-side options.
Weakness of the Total Resource Cost Test

The treatment of revenue shifts and incentive payments as transfer payments, identified
previously as a strength, can also be considered a weakness of the TRC test. While it is true that
most supply-side cost analyses do not include such financial issues, it can be argued that DSM
programs should include these effects since, in contrast to most supply options, DSM programs
do result in lost revenues.
In addition, the costs of the DSM "resource" in the TRC test are based on the total costs of the
program, including costs incurred by the participant. Supply-side resource options are typically
based only on the costs incurred by the power suppliers.
Finally, the TRC test cannot be applied meaningfully to load building programs, thereby
limiting the ability to use this test to compare the full range of demand-side management
options.
Formulas
The formulas for the net present value (NPVTRC )' the benefit-cost ratio (BCRTRC and levelized
costs are presented below:
NPVTRC = BTRC - CTRC

BCRTRC = BTRC /CTRC
LCTRC = LCRC / IMP
Where:
NPVTRC = Net present value of total costs of the resource
BCRTRC = Benefit-cost ratio of total costs of the resource
LCTRC = Levelized cost per unit of the total cost of the resource (cents per kWh for
conservation programs; dollars per kW for load management programs)
BTRC = Benefits of the program
CTRC = Costs of the program
LCRC = Total resource costs used for levelizing
IMP = Total discounted load impacts of the program
PCN = Net Participant Costs
The BTRC CTRC LCRC, and IMP terms are further defined as follows:
N
UAC t + TC t N
UAC at + PAC at
BTRC = ∑ + ∑
t =1 (1 + d ) t −1
t =1 (1 + d ) t −1
21
N
PRC t + PCN t + UIC t
CTRC = ∑
t =1 (1 + d ) t −1
N
PRC t + PCN t − TC t
LCRC = ∑
t =1 (1 + d ) t −1
n
 n 
IMP = ∑ (∑ ∆EN it ) or (∆DN it where I = peak period )
t =1  i =1 
(1 + d ) t −1
[All terms have been defined in previous chapters.]
The first summation in the BTRC equation should be used for conservation and load
management programs. For fuel substitution programs, both the first and second summations
should be used.
22
Chapter 5
Program Administrator Cost Test
Definition
The Program Administrator Cost Test measures the net costs of a demand-side management
program as a resource option based on the costs incurred by the program administrator
(including incentive costs) and excluding any net costs incurred by the participant. The benefits
are similar to the TRC benefits. Costs are defined more narrowly.
Benefits and Costs

The benefits for the Program Administrator Cost Test are the avoided supply costs of energy
and demand, the reduction in transmission, distribution, generation, and capacity valued at
marginal costs for the periods when there is a load reduction. The avoided supply costs should
be calculated using net program savings, savings net of changes in energy use that would have
happened in the absence of the program. For fuel substitution programs, benefits include the
avoided supply costs for the energy-using equipment not chosen by the program participant
only in the case of a combination utility where the utility provides both fuels.
The costs for the Program Administrator Cost Test are the program costs incurred by the
administrator, the incentives paid to the customers, and the increased supply costs for the
periods in which load is increased. Administrator program costs include initial and annual costs,
such as the cost of utility equipment, operation and maintenance, installation, program
administration, and customer dropout and removal of equipment (less salvage value). For fuel
substitution programs, costs include the increased supply costs for the energy-using equipment
chosen by the program participant only in the case of a combination utility, as above.
In this test, revenue shifts are viewed as a transfer payment between participants and all
ratepayers. Though a shift in revenue affects rates, it does not affect revenue requirements,
which are defined as the difference between the net marginal energy and capacity costs avoided
and program costs. Thus, if NPVpa > 0 and NPVRIM < 0, the administrator’s overall total
costs will decrease, although rates may increase because the sales base over which revenue
requirements are spread has decreased.
How the Results Can be Expressed

The results of this test can be expressed either as a net present value, benefit-cost ratio, or
levelized costs. The net present value is the primary test, and the benefit-cost ratio and levelized
cost are the secondary tests.
Net present value (NPVpa) is the benefit of the program minus the administrator's costs,
discounted over some specified period of time. A net present value above zero indicates that this
demand-side program would decrease costs to the administrator and the utility.
The benefit-cost ratio (BCRpa) is the ratio of the total discounted benefits of a program to the
total discounted costs for a specified time period. A benefit-cost ratio above one indicates that
the program would benefit the combined administrator and utility's total cost situation.
23
The levelized cost is a measure of the costs of the program to the administrator in a form that is
sometimes used to estimate costs of utility-owned supply additions. It presents the costs of the
program to the administrator and the utility on per kilowatt, per kilowatt-hour, or per therm basis
levelized over the life of the program.
Strengths of the Program Administrator Cost Test

As with the Total Resource Cost test, the Program Administrator Cost test treats revenue shifts
as transfer payments, meaning that test results are not complicated by the uncertainties
associated with long-term rate projections and associated rate design assumptions. In contrast to
the Total Resource Cost test, the Program Administrator Test includes only the portion of the
participant's equipment costs that is paid for by the administrator in the form of an incentive.
Therefore, for purposes of comparison, costs in the Program Administrator Cost Test are
defined similarly to those supply-side projects which also do not include direct customer costs.
Weaknesses of the Program Administrator Cost

Test
By defining device costs exclusively in terms of costs incurred by the administrator, the
Program Administrator Cost test results reflect only a portion of the full costs of the resource.
The Program Administrator Cost Test shares two limitations noted previously for the Total
Resource Cost test: (1) by treating revenue shifts as transfer payments, the rate impacts are not
captured, and (2) the test cannot be used to evaluate load building programs.
Formulas
The formulas for the net present value, the benefit-cost ratio and levelized cost are presented
below:
NPVpa = Bpa - Cpa

BCRpa = Bpa/Cpa
LCpa = LCpa/IMP
Where:
NPVpa Net present value of Program Administrator costs
BCRpa Benefit-cost ratio of Program Administrator costs
LCpa Levelized cost per unit of Program Administrator cost of the resource
Bpa Benefits of the program
Cpa Costs of the program
LCpc Total Program Administrator costs used for levelizing
N N
UAC t UAC at
B pa = ∑ + ∑
t =1 (1 + d ) t −1
t +1 (1 + d )
t −1
N
PRC t + INC t + UIC t
C pa = ∑
t =1 (1 + d ) t −1
24
N
PRC t + INC t
LCpc = ∑
t =1 (1 + d ) t −1
[All variables are defined in previous chapters.]
The first summation in the Bpa equation should be used for conservation and load management
programs. For fuel substitution programs, both the first and second summations should be
used.
25

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Unit I Introduction to Energy Auditing

ii. Detailed Energy Audit Methodology

Ten step methodology for Energy Audit

Step 2  Conduct of brief meeting  Building up cooperation

Step 5  Conduct of detailed trials/  Trials/Experiments:

Q) Write a short note on Energy Audit Report

An outline for a complete energy audit report is shown below.

Energy Audit Report Format

Q) Write in brief about measurements in Energy Audit

ii. Combustion analyser:

viii. Water flow meter:

Need of Energy Conservation

Q) Write a short note of the following:

 Always highlight the largest and smallest portions

The index may be calculated weekly, monthly or annually.

Oil energy index is 0.520x109 wh/100x109 = 5.20x103 wh/ton of product

Energy type Consumption Cost, $

The Electricity Act 2003

Some of the major provisions of the Electricity Act are:

Energy Efficient Motors

Motor rating 1.1 kW 4 kW 7.5 kW

Comparison of efficiencies of EEM and STM at different loads

Design of EEM to reduce Losses:

Power Loss Area Efficiency Improvement

Use of more copper and larger conductors increase cross sectional

Stray loss is a function of many design elements and processing of

Power Factor Triangle

Power Factor Improvement

Need for Power Factor Improvement

Hence, the size and cost of the machine is also reduced.

Methods of Power Factor Improvement

1. Static Capacitor Banks

Synchronous condenser is a rotating machine which is similar to the synchronous

 Considerable losses in the motor.

Let, VL = Line voltage

The capacitance per phase is given by the equation

The capacitance per phase is expressed by the equation

From equation (1) and (2) we get

Q) Explain about the location of capacitors for power factor Improvement

Distribution Capacitor Bank

Fixed Capacitor Bank

Switched Capacitor Banks

Q) Explain in Detail RMS horse power loading

Time (sec) 0-10 10-20 20-30 30-40 40-50 50-60

HP²t 250 490 10 810 10 640

The RMS horsepower is calculated by the following equation:

𝐻𝑃1 2 × 𝑡1 + 𝐻𝑃2 2 × 𝑡2 + ⋯ + 𝐻𝑃𝑛 2 × 𝑡𝑛

Lighting energy audit is done in order to:

Some lighting Energy Conservation measures:

Good Lighting System Design and Practice

vi. Choice of Luminaire

B. Good lighting practice:

1. Install LED panel indicator lamps in place of filament lamps

Energy Audit Instruments

Types of Clamp Meter (Tong Tester):

 Current Transformer Clamp Meter (Tong Tester) – Used to measure AC current.

Fig. – Operating Principle of Current Transformer Tong Tester (Clamp Meter)

to the primary-current is generated by electromagnetic-induction. This arm of the tong tester

Current range measured using clamp meter:

b. Hall Effect Clamp Meters – Operating Principle

Fig. – Operating Principle of Hall Effect Tong Tester (Clamp Meter)

Construction of Thermocouple Type Instrument

1. Contact Type: It has a separate heater which is shown in the diagram.