Energy Engineering

ISSN: 0199-8595 (Print) 1546-0118 (Online) Journal homepage: http://www.tandfonline.com/loi/uene20

Some Strategies for Electrical Energy Conservation

and Management in Industries

K. Natarajan

To cite this article: K. Natarajan (2015) Some Strategies for Electrical Energy Conservation and
Management in Industries, Energy Engineering, 112:6, 33-45

To link to this article: http://dx.doi.org/10.1080/01998595.2015.11494385

Published online: 11 Sep 2015.

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 33

Some Strategies for

Electrical Energy Conservation and
Management in Industries
K. Natarajan
Downloaded by [University Of Gujrat] at 15:08 26 July 2016

ABSTRACT

The gap between growing demand for electrical energy and its
availability is ever increasing in developing countries. In the context of
increasing shortage on one hand and scarcity of resources on the other
hand, the most cost-effective option available to any country to bridge
the gap between demand and supply of electrical energy is energy con-
servation and management. World-renowned energy economists have
acknowledged that good energy conservation and management practic-
es can achieve up to 25% in energy cost reductions. This article presents
some electrical energy conservation strategies and energy management
practices and policies, which will enhance the conservation of electrical
energy in industries. A three-pronged approach to energy conservation
is presented: capacity utilization, fine-tuning and technology up grada-
tion.

Keywords: Energy conservation, Energy efficiency, Energy management

INTRODUCTION

Energy is a critical input for economic development and social

transformation of any country. The economic health of any country is
almost commensurate to its per capita energy consumption. Energy
need in developing countries is growing exponentially due to high rates
of industrial growth and improvement in the residents’ standard of liv-
ing; therefore, an adequate, environmentally friendly supply of energy
is a necessary precondition for sustainable development of the country.
The present climate debate has put a severe constraint on our energy
 34 Energy Engineering Vol. 112, No. 6 2015

resources. The most cost-effective option available to bridge the gap

between the country’s demand and supply of electrical energy is energy
conservation and management, coupled with accelerating capacity and
reducing transmission and distribution losses. World-renowned energy
economists have acknowledged that good energy management and con-
servation practices can achieve up to 25% reduction in energy costs.
Energy management aims at reducing the energy consumption of
an organization and minimizing the detrimental impact on environment
[1]. Energy conservation measures can save substantial quantities of
energy without sacrificing production or suffering inconveniences and
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can be considered as an alternative source of energy. One kWh of energy

saved at the user end could mean a relief of 2-4 kW of generation capac-
ity depending on the plant load factor, transmission and distribution
losses and end-use efficiency [2]. Significant energy savings could be
achieved through better housekeeping, improved capacity utilization,
development of cogeneration facilities, and arrangements for improving
the quality of electricity supply.
This article presents some electrical energy conservation strategies
for industries and energy management practices and policies that will
help energy conservation efforts in industries.

ENERGY MANAGEMENT PRACTICES AND POLICIES

Energy management is a technical and management function, the

task of which is to monitor, record, analyze, critically examine, alter and
control energy flows through systems to use energy with maximum effi-
ciency [1]. An energy audit is a fundamental part of any energy manage-
ment program. An energy audit is the first step towards understanding
how energy is being used in any organization. It indicates the ways in
which different forms of energy are being used and quantifies energy
used according to discrete functions. It highlights major areas where
inefficiencies or wastes occur, which identifies where energy saving
measures can be implemented. It allows economic estimates, leading to
making fully reasoned investment decisions.
There are two central energy management strategies: 1. Energy
conservation, which means the avoidance of wasteful energy use and the
reduction in demand for energy related services and 2. Energy efficiency,
which means the reduction in consumption of energy by introducing
 35

more efficient equipment and systems. Energy efficiency results in us-

ing less energy for the same functions. Energy efficiency will contribute
to energy conservation, so it is an integral part of energy conservation
promotional policies.
Significant financial savings can be achieved through increased
energy efficiency. Lowering energy intensity through higher efficiency is
like creating a virtual source of untapped energy. According to the Inter-
national Energy Agency (IEA), the global economy could be 18 trillion
dollars better off by 2035 if we adapt energy efficiency as a first choice.
Every industry should implement an energy management system
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(EnMS) such as ISO 50001, which focuses on continual improvement in

energy performance. ISO 50001 is the international standard for energy
management systems that provides a robust framework for integrating
energy performance into the management practices of organizations.
That network of interconnected processes enables an organization to
use data and information to maintain and improve energy performance,
while improving operational efficiencies, decreasing energy intensity
and reducing environmental impacts. It is based on the Plan-Do-Check-
Act (PDCA) cycle that provides a framework for continual improve-
ment.
In Japan, the integrated iron and steel industries have demon-
strated the success of reducing energy intensities through adapting suc-
cessful and workable energy management policies. They have achieved
a specific energy consumption of about 21.7-23.4 million kJ/ton of cast
steel. These industries provide outstanding examples for others to fol-
low [3].
The entire industrial sector work force can be mobilized through
an effective policy designed to stimulate enthusiasm for energy conser-
vation. Some of the policy measures that are recommended by expert
groups and need special emphasis to improve energy efficiency in the
industrial sector are:
1. Adopting measures to improve the efficiency of energy utilization
should be the most important energy policy in the industrial sector
2. Enforcing mandatory energy auditing of all large- and medium-
sized industrial units. Appointing energy managers should be
made mandatory in large- and medium-sized industries
3. Intensifying efforts to promote more competent energy auditors by
organizing meaningful training programs
 36 Energy Engineering Vol. 112, No. 6 2015

4. Setting up mandatory energy conservation cells and populating

them by competent personnel in all major industrial units
5. Developing and promoting training programs for skilled labor to
expand technical expertise in energy management
6. Creating an energy conservation fund for providing investments
and subsidies for energy conservation schemes
7. Stressing co-generation in industries where simultaneous demand
for power and process heat exits
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8. Offering customs duty relief on both components and equipment

related to energy conservation
9. Instituting a system of governmental recognition and awards hon-
oring organizations for outstanding performance in energy conser-
vation

The benefits of pursuing energy management include enhanced

cost competitiveness, improved profitability due to improved produc-
tivity and performance, conservation of natural resources and envi-
ronmental benefits like reduction in greenhouse gas emissions. Global
warming is a consequence of large-scale release of greenhouse gases,
and the combustion of fossil fuels is one of the major contributors to
global warming. About 70% of our worldwide energy demand is met by
the combustion of fossil fuels. Taking steps to save energy is one way of
contributing towards environmental sustainability.

THREE-PRONGED APPROACH TO ELECTRICAL ENERGY

CONSERVATION IN INDUSTRIES

The industrial sector is a major electrical energy consumption sec-

tor in any country. The six key energy intensive industries—namely ce-
ment, paper, aluminum, steel, fertilizers and petrochemicals—consume
about 65% of the total energy used by industry. It has been estimated that
the industrial sector has potential for about 25% energy savings of their
total energy consumption. These estimates also indicate that the above
potential can be realized through efforts where capital costs are much
less than those needed to generate an equivalent amount of energy. An
estimated 5-10% savings can be realized by adopting no-cost house-
 37

keeping measures. Substantial portions of the balance can be realized

with small investments towards low-cost retrofitting and cost-effective,
energy-efficient devices and controls with payback periods ranging from
few months to 3-4 years.
Energy efficient companies have achieved lower specific energy
consumption by rigorously adapting the three-pronged approach to
energy conservation (Figure 1) comprised of capacity utilization, fine-
tuning and technology up gradation [4].
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Figure 1. Three-pronged Approach to Energy Conservation

Capacity Utilization
High capacity utilization is essential for achieving energy effi-
ciency because it brings down the fixed energy loss component of the
specific energy consumption. At least 90% capacity utilization needs to
be ensured for achieving low specific energy consumption. Improving
the capacity utilization of existing units should be given due consider-
ation before starting new plants. The following strategies will be helpful
to achieve high capacity utilization.

Load Management
A very useful method for optimizing electrical energy consump-
tion is load management. Load management is the process of scheduling
load usage to reduce electrical use during peak load periods. The aim of
load management is to maintain, as nearly as possible, a constant level
of load, thereby allowing the system load factor to approach 100%. Load
factor is the ratio of the average load to the actual maximum load dur-
ing a selected interval of time. The aim of load management is to main-
tain, as nearly as possible, a constant level of load, thereby allowing the
 38 Energy Engineering Vol. 112, No. 6 2015

system load factor to approach 100%. Load management can have far
reaching benefits since the reduction in the peak load results not only
in reduced demand charges, but also in reduced line losses and conse-
quently improved voltage regulation and system efficiency.
Peaks may occur either due to system faults or improper manage-
ment. The loads can be rescheduled to reduce the peaks only by moni-
toring and analyzing the load curve on a regular basis. Systems having
many loads are best controlled by centralized control devices, which
monitor system energy consumption and demand and decide when load
shedding should be resorted to. As soon as the load increases beyond the
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fixed demand, loads are shed according to a pre-programmed priority

and they are later restored as the demand reduces.

Power Factor Correction

The power factor is the cosine of the angle by which the current
lags or leads the voltage in an electrical system, and it is the ratio of
real power (kW) to the apparent power (kVA) of the system. The low
power factor results in increased reactive current, and that in turn
increases the total current drawn by the system to provide the power.
The non-power current is dissipated as waste heat resulting in inef-
ficient operation. In addition, the sizes of switchgear, fuse gear, cables
and transformers have to be larger. With an increase in the total current
drawn, I2R losses in the line also increase, which results in greater volt-
age drop across the line leading to poor voltage regulation. Low power
factor also results in increased reactive power, leading to increased
kVA demand by:

where kVA= apparent power,

kW= real component and
kVAR= reactive component of power.

Hence power is a key factor in electrical energy conservation. The

power factor can be improved by installing appropriate capacitors in
the system. Installation of capacitors results in leading current and thus
compensates for the lagging current drawn by the load. To determine
the rating of a capacitor required for a particular load, it is necessary to
 39

determine the reactive power of the load. The capacitor rating required
to improve the power factor from an existing value to a desired value
can be computed using the equation:

CkVAR = kW × (tanθ1 – tanθ2)

where CkVAR = capacitor kVAR required,

θ1= cos–1 (existing power factor) and
θ2 = cos–1 (desired power factor)
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Ideally, the capacitors should be connected as near to the load as possible

to get maximum benefit.
Power factor improvement has several advantages: 1. Reduced
kVA demand, thereby reducing demand charges. 2. Reduced I2R losses
in cables, thereby reducing energy charges. 3. Reduced voltage drop,
leading to improved voltage regulation with resultant increase in over-
all system efficiency. For medium-sized industries utilizing electrical
power, it is advantageous to employ automatic power factor demand
controllers, which will switch in capacitors as required to maintain a
steady, predetermined power factor.
A case study highlighting the savings in demand charges by install-
ing capacitors for power factor improvement is shown in Table 1.

Table 1. Savings in demand charges by installing capacitors

for power factor improvement
 40 Energy Engineering Vol. 112, No. 6 2015

Demand-side Management (DSM)

For any power utility, demand-side management (DSM) means
managing the demand for power among some or all of its customers to
meet current or future needs. This involves a series of utility-initiated
actions aimed at influencing customer load patterns and total consump-
tion. DSM can be achieved through demand load management, which
results in the reduction of power demand at peak times or through en-
ergy efficiency, which results in the reduction of energy consumption.
For instance, replacing incandescent electrical bulbs by light emitting di-
odes can lead to avoidance of generation capacity and financial savings
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both for the customer and the utility. By shifting the demand from peak
to off-peak periods, DSM enables power utilities to better manage their
load curve. The benefits of DSM are higher end-use energy efficiency,
improvement in the quality of power and the reduction in the cost of
power.

Fine Tuning of Equipment

On achieving high capacity utilization, the fine-tuning of equip-
ment should be addressed. It requires only marginal investment. Vari-
ous energy audit studies reveal that fine-tuning, if efficiently done, can
yield a 3-10% energy savings. The following strategies will help in this
approach:

Preventive Maintenance
Electrical preventive maintenance should be carried out as planned
on plant shutdown days by adopting the well-established maintenance
methods for various electrical equipment such as electric motors, trans-
formers, switch gears and bus bars for economic use of electricity. This
is an opportunity to avoid breakdowns as well as an opportunity to save
power.
It is reported that two thirds of total electricity consumption in the
world is by electric motors. The basic maintenance program involving
periodic inspection and the correction of unsatisfactory conditions will
prolong the life of electric motors. Overall cleanliness is important to
ensure that the heat generated within the motor is effectively removed.
Fan inlets and frame surfaces of electric motors should be kept clear of
deposits. Airflow over the motor, particularly at the non-drive end near
the fan inlet, should not be obstructed. An increase of 1oC in the stator
winding temperature can produce up to 0.5% increase in the I2R loss
 41

and shorten the life of motor insulation. Motor shaft to load alignment
should be good to reduce running losses, bearing wear, noise and vibra-
tion.

Switch-off Policy
The simplest way of reducing energy consumption is to switch off
the motors when they are not required. A saving of 5% can be achieved
by voluntarily switching off motors. This is an immediate gain that costs
nothing. This switch off policy is the first and the most important mea-
sure that should be adopted to save energy. However, before adopting
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this energy saving technique, any added maintenance or repair costs

arising from the extra wear on the motor due to more frequent switching
on and off should be taken into account. The extra heating due to high
starting current can shorten the life of the motor insulation system. Also
frequent starts increase wear on bearings and belt drives. These should
be evaluated before adopting the switch off policy.

Technology Up Gradation
Quantum jumps in energy savings can be achieved only by ap-
plication of new technologies or by up gradation of existing technology.
Innovation, improving of existing technology and application of newer
technology should be an ongoing activity in all sectors of industry.
Adapting energy efficiency technologies at the inception stage should be
the goal for new plants. The following are two areas in which the appli-
cation of newer technology or improvement in existing technology will
result in considerable savings in electrical energy.

Selection of Electric Motors

The electric motor, which is used to provide motive power to
equipment such as compressors, machine tools, blowers and pumps, is
probably the most widely used piece of electrical equipment in industry.
Thus, the most significant saving in motor electricity can be achieved by
proper selection of motor type and the rating, taking into consideration
such things as the process requirements, operating conditions, reliability
and maintenance requirements. The consumption of electricity in motors
can be further reduced by operating them at rated voltage and balanced
supply and with improved controls such as electronic soft starters, vari-
able speed starting systems with energy saving features and improved
cooling. It is also necessary to check the lubrication of motors periodi-
 42 Energy Engineering Vol. 112, No. 6 2015

cally on a schedule so that friction losses can be kept within permissible

limits.
The efficiency of an electric motor is the ratio of the mechanical
energy delivered at the rotating shaft to the electrical energy input at its
terminals. Figure 2 shows the typical variation of efficiency and power
factor with load for an induction motor [2].
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Figure 2. Typical Variation of Efficiency and Power Factor with Load

for a 37 kW Three Phase Induction Motor

It is clear that the efficiency of an electric motor is proportional to

the loading of motor. Hence, the motor rating should be matched with
the driven load, as they are designed to run at their highest efficiency
at full load. Smaller capacity motors can replace large motors that are
under loaded. Under loading of the motors results in several disadvan-
tages: lower efficiency, poor power factor and higher initial cost.
The energy consumed by a motor during its life cycle is 60-100
times the initial cost of the motor. Hence, the efficiency of the motor
during its operations is of paramount importance. Energy efficient mo-
tors with improved design to reduce intrinsic motor losses ensure better
performance such as 3-4% higher energy efficiency, improved power fac-
tor, increased service life, reduced operating cost and lower noise level.
Though energy efficient motors are 15-20% more expensive than conven-
tional motors, they are designed to pay for themselves through reduced
energy costs. The additional investment on energy efficient motors can
be recovered in 1-3 years’ time, depending on working hours and cost of
energy. Energy efficient motors have been successfully implemented in
 43

several plants both at the design stage and as retrofits in existing plants,
resulting in substantial energy savings.
Table 2 is a case study that explored the feasibility of using an ener-
gy efficient motor in place of conventional 15 kW motor and determined
the associated savings.

Table 2. Energy saving by using energy efficient motor

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Energy saving controllers can be used in applications where mo-

tors are required to run idle or at light loads for a long time. The motors
can be operated at maximum efficiency level at different load conditions
if the motor input voltage can be controlled in accordance with the varia-
tion in load.
The group drives should be replaced with individual drives so
that any time when a particular machine is not required to run, it can be
switched off individually. The drive transmission efficiency should be
improved by using modern synthetic flat belts, which have an efficiency
of 96-98%. By this method, a 5-12% savings in motor input power can be
achieved. Direct drive is the most preferred option, as it does not involve
any transmission loss.
 44 Energy Engineering Vol. 112, No. 6 2015

Industrial Lighting
Saving energy in industrial lighting requires either reducing elec-
tricity consumed by the light sources or reducing the duration that the
light sources are on. The following are some strategies to enhance energy
conservation in industrial lighting:

1. Using energy efficient lighting options such as light emitting di-

odes (LEDs) where possible
LEDs produce more light from a given amount of energy. In
LEDs, the electric current passes through a specially designed
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semiconductor chip and is converted directly to light without

wasting energy in the form of heat. It is estimated that LED tech-
nology could reduce electricity consumption for lighting by as
much as 50%.

2. Using day lighting to reduce energy consumption by replacing

electric lights with natural light
The entire building can be made to receive ample natural
light throughout the day by channeling sunlight in through such
things as large windows, light pipes and extra windows at higher
levels. Painting walls in white or pastel shades enhances lighting
and minimizes heat absorption from sunlight. Modern buildings
designed for day lighting typically use 40-60% less electricity for
lighting needs than do conventional buildings [5]. In Germany,
with its strict energy codes, it is reported that the average energy
consumption in buildings is only 50 kWh per m. sq. annually.

3. Installing energy savers in lighting circuits to reduce energy con-

sumption
A slight reduction in operating voltage results in energy sav-
ing without appreciably affecting lighting levels.

4. Resorting to spot lighting at work locations where higher intensity

of light levels are required

5. Reducing illumination in storage and non-working areas

6. Lowering the height of the light fixtures in high ceiling areas

7. Installing timers or clock switches in the areas where intermittent

but substantial lighting load exists
 45

8. Installing photocell controlling switches in open area lighting,

which will automatically switch on and off when ambient light
conditions change.

9. Installing occupancy sensors in the areas that are used infrequently

Occupancy sensors activate lights when a person is in the area
and turns them off after the person has left.

10. Ensuring simple maintenance, which preserves illumination and

light quality
Maintenance, which involves the regular cleaning of lamps
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and fixtures, is vital to lighting efficiency.

CONCLUSION

Energy conservation and management offers the lowest cost op-

tion for bridging the ever-widening gap between demand and supply
of electrical energy in developing countries. Increasing the generation
of power without looking into the aspect of energy conservation is like
continuing to fill a leaky bucket without stopping the leakage. A unit of
energy saved is much greater than a unit produced, as it saves on three
types of losses: production, transmission and distribution losses. Hence,
energy conservation and management efforts in industries should be
given high priority.
Support by government is essential to finance research and de-
velopment programs for improving energy efficiency. For expediting
energy efficiency programs and projects, international exchanges of ex-
perience and know-how play a major role.
Energy conservation and management is to conserve our resources
and environment for future generations so it is everyone’s moral respon-
sibility. National movements for energy conservation and management
lead to an energy efficient environment and help nations achieve self-
sufficiency in energy.

Acknowledgment
The author wishes to thank the Editor Dr. Wayne C. Turner and the
reviewers for giving very useful suggestions in the preparation of this
review article.
 46 Energy Engineering Vol. 112, No. 6 2015

References
[1] O’Callaghan, P.W., Energy Management, 1993: McGraw Hill Book Co., London.
[2] Amit Kumar Tyagi (Editor), Handbook on Energy Audits and Management, 2000, Tata
Energy Research Institute, New Delhi.
[3] Energy Conservation: Future Directions, 2002, Petroleum Conservation Research As-
sociation (PCRA), New Delhi.
[4] Survey of Energy Conservation in India 2006, Labor & Industrial Chronicle, Hyder-
abad.
[5] Energy Conservation in Industries—Vol. 1. 1991, Society for Conservation of Energy,
Hyderabad.

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ABOUT THE AUTHOR

Dr. K. Natarajan is presently visiting professor of mechanical engi-
neering at Vel Tech University, Chennai, India. He received his M.S. and
Ph.D. degrees from the Indian Institute of Technology, Madras, India.
He also worked for two years as postdoctoral scholar in the University
of Duisbung, Germany, from 1985-1987. His areas of interest are engi-
neering thermodynamics, energy engineering, combustion and internal
combustion engine pollution. He has to his credit about 40 papers in
national and international journals and conference proceedings. He can
be contacted by e-mail at natarajank_eec@yahoo.co.in.