EE5053:

Energy Efficiency, Demand Management

and Conservation

• Broad Issues and Actions to Promote

Efficiency:
– Demand-side Efficiency Issues

• Energy Accounting
– National and Institutional Energy Accounting
– Development of energy/output correlations
and benchmarks

• Demand-side Management Initiatives

Lecture 1: March 2021 1
 Demand-side Efficiency Issues:
Biomass

• Minimal Processing on the supply-side

(only charcoal), hence no supply-side
efficiency issues
• Worst efficiency on the demand-side
• Large number of small customers
• No commercial value for most users
• Health impacts of inefficient use

Lecture 1: March 2021 2

 Are we an Energy Efficient Nation ?

Figure shows countries with per capita GDP in the range 3000-4300 USD in 2015. The following countries for
which energy data is not published are excluded: Tuvalu, Cape Verde, Marshall Islands, Swaziland, Egypt,
Tonga, Guyana, Bosnia
Lecture 1: March 2021 3
 Our Position in South Asia ?
4,500
Per Capita GDP (nominal USD) 4,000 Sri Lanka
3,500
3,000
2,500
2,000
1,500 India
Bangladesh Pakistan
1,000
Nepal
500
-
200 300 400 500 600
Per Capita Energy Use (kgOE)
Energy data for Maldives is not available Lecture 1: March 2021 4
 Demand-side Efficiency Issues:
Biomass: What can be done ?

• Improved end-use devices in the

households
– semi-enclosed hearth
– other improved low-cost combustion systems,
mini-gassifier
• Promotion, customer education
• Efficiency improvement in industrial
systems
– tea industry furnaces
– Brick and tile kilns
– Bakery ovens
Lecture 1: March 2021 5
Lecture 1: March 2021 6
 Demand-side Efficiency Issues:
Commercial Energy
• Sri Lanka Energy Market
Electricity: Rs 250 billion (2019)
Petroleum: Rs 700 billion (2019)
LP Gas: Rs 7 billion (2019)
Biomass: Rs 10 billion (est 2019)
• Major issues in the transport sector:
requires improved infrastructure, modal
shifts, regulations
• Industrial energy efficiency issues:
electricity and petroleum products
• Household efficiency issues: mostly
electricity Lecture 1: March 2021 7
 Demand-side Efficiency Issues: How
much can we save ?

• Save by application of available

technology, good housekeeping
• Save by demand management, improved
accounting and monitoring
• Save by using new technology
• National Industry Potential: 10%-20% ?
• Households: 10% ?

Lecture 1: March 2021 8

National Energy
Accounting

Lecture 1: March 2021 9

 Sri Lanka Energy Balance

• A record of supply, conversion and

demand for different forms of energy.
• Can be used for macro level assessment
of energy efficiency potential/intensity
assessment
• The national energy balance has been
introduced to you already

Lecture 1: March 2021 10

Institutional Energy
Accounting

Lecture 1: March 2021 11

Energy Management in an Industry

Lecture 1: March 2021 12

 Energy Accounting in an Industry:
Three Steps

• Accounting: A good system where information

is freely available, analysed and presented

• Monitoring: Continuous assessment of data,

good metering, departmental metering

• Targeting: All energy suppliers and users

should work to a target

Lecture 1: March 2021 13

Total Energy Account of a Company

Dept.1 Dept.2

Dept.3

Total Energy Account

Lecture 1: March 2021 14
Energy Accounting: Basic Requirements

• Departmental and device-level

metering
• Weekly/monthly analysis
• Management Reports
• Correlation with production/service
levels

Lecture 1: March 2021 15

THE ENERGY ACCOUNT: A Case Study

A GARMENT FACTORY HAS SEVERAL PRODUCTS

Month Production (pieces) Total Electricity
Use (kWh)

Denims GMT Enzyme

Jan 332,595 55,002 129,683 375,097
Feb 239,156 155,950 174,222 349,055
Mar 152,240 283,787 56,975 283,533
Apr 164,512 280,518 2,939 299,509
May 322,250 405,153 42,465 433,792
Jun 266,294 546,548 29,347 380,500
Jul 272,589 506,060 40,259 444,367
Aug 272,837 414,406 58,678 430,120
Sep 424,396 210,869 13,684 370,884
Oct 357,737 450,811 8,587 475,400
Nov 434,513 389,166 6,612 441,623
Dec 362,181 336,233 57,648 451,882
Lecture 1: March 2021 16
 SCATTER PLOT AND LEAST SQUARE FIT

500,000
LEAST SQUARE FIT

450,000
Electricity Use (kWh)

400,000

350,000

300,000

250,000
400,000 500,000 600,000 700,000 800,000 900,000
Total Pieces
Lecture 1: March 2021 17
 ENERGY EQUATION

ELECTRICITY USE =
144,210 + 0.364 ´ PRODUCTION

R squared = 0.74, t-statistic = 2.3, 5.3

ELECTRICITY USE IN kWh

PRODUCTION IN PIECES
Lecture 1: March 2021 18
 ACHIEVE TARGETS

500,000

450,000
Electricity Use (kWh)

March
400,000

February
350,000 January

300,000

250,000
400,000 500,000 600,000 700,000 800,000 900,000
Total Pieces
Lecture 1: March 2021 19
 DISAGGREGATE ?

ELECTRICITY USE =
106,980 + 0.52 ´ DENIM + 0.31 ´ GMT + 0.48 ´ ENZ

R squared = 0.82, t-statistic = 1.97, 4.85, 3.82, 2.02

HELPS ESTABLISH ENERGY ACCOUNTING CENTRES

Lecture 1: March 2021 20

 TARGETING

• Start small
– (5% SAVINGS IN SPECIFIC ENERGY CONSUMPTION IS
MORE THAN ADEQUATE IN THE FIRST YEAR)

§ Check national and international

norms for industry
§ Sri Lanka benchmarks still under
preparation

Lecture 1: March 2021 21

Benchmarking: example of a porcelain factory

Lecture 1: March 2021 22

 Calculate Specific Energy
Consumption
1.6
1.4
Specific Energy Consumption

1.2
1.0
(GJ/room-night)

0.8
0.6
0.4 y = 1399.1x-1.0194
2
R = 0.9612
0.2
0.0
850 1350 1850 2350 2850 3350

Occupancy (roomsxnights per month)

Example of a hotel, where the level of service is seasonal

Lecture 1: March 2021 23
 Benchmarking, monitoring
• Do you see the equation on the chart ?
– It says that SEC = 1399 x occupancy-1.0194
• So, we can use this equation to estimate SEC for any future
month
– It also says that R2 = 0.9612
• This means the statistical fit is good, the best value for R2=1.0.
• We can use this chart as a benchmark, and monitor
the SEC in future months. Before that, we have to
go back to our calculations.
• For each month in the future, we can enter the
energy use and occupancy data, and get a new
value for SEC.

Lecture 1: March 2021 24

 What else can this graph be used for ?
1.6
1.4
Specific Energy Consumption

1.2
1.0
(GJ/room-night)

0.8
0.6
0.4 y = 1399.1x-1.0194
2
R = 0.9612
0.2
0.0
850 1350 1850 2350 2850 3350

Occupancy (roomsxnights per month)

Lecture 1: March 2021 25

 Benchmarking, monitoring
• SEC in the last two months is poor than the benchmark.
Investigate !!!
• Compare with others in the industry (next slide)
• Are there any other indices that can explain the change ?
Too many functions in recent months ?
– Can functions be included in further analysis ?
• Develop more detailed analysis
– We can also use another index, such as the number of functions or
the number of meals served, and develop a relationship such as:

SEC = a x occupancy + b x functions + c x meals served + d

– Spreadsheets have the analysis functions built-in. So it is not really

difficult to conduct multiple linear regression analysis, even
repeatedly.
Lecture 1: March 2021 26
 Benchmarking, monitoring
1.6

1.4
y = 0.4034x-1.0174
R2 = 0.9468
1.2
This hotel
SEC (GJ/room-night)

1.0

0.8
Another hotel
0.6
y = 0.3324x-1.0342
R2 = 0.9503
0.4

0.2

-
20% 30% 40% 50% 60% 70% 80% 90% 100% 110%
Monthly Occupancy

Lecture 1: March 2021 27

 SEC Profiles will not always be smooth:
There would be other determinants of electricity use beyond the
number of pieces

1
Electricity Consumption(kWh/piece)

0.9
y = -6E-07x + 1.225
0.8 R² = 0.553

0.7

0.6

0.5

0.4
680,000 780,000 880,000 980,000 1,080,000 1,180,000
No. of Pieces
Lecture 1: March 2021 28
Problem Discussion

Lecture 1: March 2021 29