Energy Management

Dr. A R Harikrishnan
BITS Pilani Assistant Professor, Mechanical Engineering
Pilani Campus
 BITS Pilani
Pilani Campus

ET ZC 353, PE ZC 352
Lecture 1: Introduction to energy
management and Energy Auditing
Outline of Energy
Management
M1:
 Energy Auditing: Introduction, Energy, Demand, Management,
Conservation schemes, Energy-conservation, index, cost, representation.
 Energy Sources: Energy reserves, Consumption pattern, Cost of energy,
Energy policies.
 Economics of Management: Costing techniques, Financial appraisal, Cost
optimization.

M2:
 Heat transfer concepts: Heat transfer properties, Modes of heat transfer,
Thermal insulation.
 Heat transfer fluids and medium: Thermal fluids, Air-water vapour
mixtures, properties and analysis.
 Heat transfer equipment: Heat exchangers, Combustion and thermal
efficiency, Steam plant, Pressure hot water plant.
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Outline of Energy
Management
M3:
 Different types of energy utilization and conversion systems:
CHP systems, Boilers and Furnaces, Energy conversion, District heating.

M4:
 Electrical Energy: Basics of electrical energy, Measurements, Efficient
lighting, Power factor improvement, Temperature measurement, Industrial
Heating.

M5:
 Building construction and architecture: Space heating, Condensation.
 Basic air conditioning: Cooling load calculation, Psychometric analysis.
 Heat recovery: Classification, Regenerators and Recuperators, Waste heat
Boilers.
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Text book

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Evaluation Scheme

No Name Type Duration Weight Day, Date, Session,

Time
EC-1 Quiz-I/ Online - 5% February 19-28, 2024
Assignment-I
Quiz-II Online - 10% March 19-28, 2024
Quiz-III/ Online - 10%
April 19-28, 2024
Assignment-II
EC-2 Mid-Semester Test Closed 2 hours 35% Saturday, 16/03/2024
Book (AN)
EC-3 Comprehensive Open 2 ½ 40% Saturday, 18/05/2024
Exam Book hours (AN)

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Overview
Energy: Energy demand, Energy efficiency,

Energy Management: Need, Energy management cycle, System

model, Requirements, Energy Management Program

Energy Management: Merits and Precautions

Energy Policy

Energy Management Strategies

Energy Auditing

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BITS Pilani, Pilani Campus
Energy

Energy
– Energy is well recognized to be the lifeline of all human activities
– In a broad perspective, energy acts as a key catalyst in the
generation of wealth for a nation
– It plays a significant role in developing the technological, industrial,
economic and social sectors within the nation

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BITS Pilani, Pilani Campus
A diagram of how energy makes its way from the sun into the energy services
used everyday.

Energy currencies like electricity and gasoline are a critical step. Without the
currency stage, the primary energy wouldn't be able to be turned into the energy
service.
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 Energy Demand
There has been a continuous increase in the energy demand till now

Providing a low or constant level of energy supply towards the demanding energy
status clearly indicates the alarming limit for using the conventional fossil fuel
based energy sources further

The major energy challenges to be confronted in this regard can be summarized as:
– Growing concerns about the extensive usage of primary and secondary
– Energies globally, imminent shortage of primary energy and its extraction
– Relative green house gas (GHG) emissions to the environment
– Evidences for climate changes and global warming impacts on the environment
– Overall rise in fuel prices

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BITS Pilani, Pilani Campus
Energy Demand
In order to sustain the living standards in developed nations as well as to
improve the societal and economical status in the developing countries,
it is of great importance to balance the huge gap between the energy
generation and consumption

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Energy Efficiency and Energy
Management
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 Energy Efficiency
 The concept of energy efficiency is indispensable in many engineering
applications and in fact has a strong relationship with the per capita energy
consumption and economic growth rate

 The term energy efficiency refers to the amount of energy actually required
to generate or produce the desired end products

 In other words, energy efficiency is a parameter that indicates the minimum

level of energy usage for performing an associated task and that largely
depends on the state-of-the-art technological and production processes

 Energy efficiency is highly valued in almost all engineering and

technological fields because of the workability of end-use product that
consume less energy on long term basis
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Energy Management
 Energy Management
It can be defined as the management of energy in a judicious
manner and effectively utilizing energy to maximize profits and
acquire enhanced competitive positions in the global market

 Energy management is intensely coupled with energy efficiency and

increasing of which would provide a cost effective pathway for
reducing greenhouse gas emissions.

 In recent years, the magnitude of energy consumption in all sectors

seems to crest from the normal demand, and that has to be carefully
addressed through implementing energy conservative and energy
management techniques
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Energy Management Strategy

Source: viatech.com

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Need for Energy Management

Energy Management in industries/companies is required because:

– Energy costs which affect the company profitability
– Energy costs which affect the competitiveness in the world market
– National energy supply/demand balance
– National trade and financial balance
– Local and global environments
– Occupational safety and health
– Loss prevention and waste disposal reduction
– Productivity and Quality

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Energy Management Cycle

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BITS Pilani, Pilani Campus
Company Commitment

Actions Details
1. Sign up the Board - How do you negotiate a budget and human
and senior resource allocation – what’s reasonable and
management what’s the expected return?
2. Allocate resources - How much time is it going to take? How
- human and many people hours should you plan for?
financial - How do you write an energy policy that
3. Write an Energy everyone understands and takes seriously?
Policy

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Understanding Energy Use

Actions Details
Measure and - Depending on the size and complexity of the business,
evaluate the clearly understanding your energy use can be a huge
energy use and undertaking. It needs to be thorough and accurate as it’s
spend the foundation of your plan.

- How do you evaluate the use of electricity, gas,

transport fuel, and any other fuel/energy used, in all
parts of the operation, and in all locations?

- How do you analyse historic data, trends – daily and

seasonal cycles? The more you know the better.

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Planning and Organisation

Actions Details
1. Target areas for - Once you know your spend, how do you target areas
reduction and savings for reductions and savings. What’s possible? What’s
2.Get staff involved reasonable and achievable?
3. Write and circulate - How do you identify energy efficiency projects and
the action plan write convincing business cases for them?
- How do you get staff interested, contributing ideas,
and staying involved?
- How do you write an action plan that everyone
understands and takes seriously?

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Implementation

Actions Details
Launch your Energy - Have you set baselines for your energy use?
Management - Do you know how to accurately measure all the
Programme benefits outlined in your action plan?
- What internal or external reporting
requirements do you need for your investments
in energy upgrades?

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Verification, Monitoring and Reporting

Actions Details
1. Measure and report - How do you accurately measure and
the results report results?
2. Celebrate successes - How can you build on your
3. Keep looking for new achievements and get even better
ways to manage and results?
save energy

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Energy Management System Cycle

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 Requirements for Energy Management

The basic requirements for an effective energy management include:

– Set up an Energy Management Plan
– Establish energy records
– Identify outside assistance
– Assess future energy needs
– Identify financing sources
– Make energy recommendations
– Implement recommendations
– Provide liaison for the energy committee
– Plan communication strategies
– Evaluate program effectiveness

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 Precautions of Energy Management
Programs
The precautions of energy management program include:
– Many people at division level may have already done a good job of
saving energy, and are cautious about corporate level staff coming
in and taking credit for their work

– All divisions don’t progress at the same speed

– Work with those who are most interested first, then through the
reporting system to top management give them credit.

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Energy Conservation Schemes

 Conservation of energy simply means cutting out waste by eliminating

unnecessary usage of energy – whether it be oil, gas, coal, or electricity

 What lies behind a Conservation of energy Campaign is to ensure the

minimum wastage by making the best possible use of the energy consumed

 It is generally considered that investment for energy conservation should be

judged exactly the same criteria as for any other form of capital investment.

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Energy Conservation Schemes

Energy conservation measures may be classified on an economic basis and

fall into the following three categories:

– SHORT TERM: Involve changes in operating practices resulting in little

or no capital expenditure

– MEDIUM TERM: Low-cost modification and improvements to existing

equipments. Pay-back period often 2 years or under 1 year

– LONG TERM: Modification involving high capital costs. Implementation

on new techniques and technologies

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Short-term Energy Conservation Schemes

Furnace efficiencies: Minimum excess combustion air. Continuous

monitoring of oxygen levels of flue gases. Oil burners be cleaned and
maintained regularly.
Heat exchangers: Careful monitoring of performance should be carried out to
determine optimum cleaning cycles.
Good housekeeping: Doors and windows be kept closed during heating season
and avoid excessive ventilation. Use natural light whenever sufficiently
available. Encourage clothing appropriate to the temperature of the
working areas
Use of steam: Major steam leaks should be repaired as soon as possible.
‘On stream’ maintenance specializing can be used. Amount of use should
be optimised and controlled.
Electrical power: conservation measures can reduce the power consumption
by 10-15%.
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Medium-term energy conservation schemes
(a) Insulation: Improve insulation to prevent cold-air leaking into the building.
Improving insulation of the steam distribution system.

(b) Heating systems: Improving the time and temperature control of the heating
systems in buildings.

(c) Replacing air compressors

(d) Instrumentation: To measure and control conservation parameters,

adequate instrumentation must be provided or operators
will loose interest in maintaining efficiencies.

(e) Process modifications: This scheme depends upon the industry concerned.
For e.g., Steam condensate, if uncontaminated, may be
used as boiler feed water.

(f) Burners: The control and amount of atomising steam is important and often in
furnaces and boilers the amount of atomising steam is far in excess.

(g) Electrical power savings: Considerable savings may be made by adjusting the
electrical power factor correction. BITS Pilani, Pilani Campus
Long-term Energy Conservation Schemes

(a) Heater modifications: The installation of heating tubes and air preheaters
to extract more heat from furnace flue gases.

(b) Heat recovery: Improved heat recovery in the processing areas by

additional heat exchange schemes.

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 Energy Policy
It provides the energy manager with the authority to be involved in business
planning, new facility location and planning, the selection of production
equipment, purchase of measuring equipment, energy reporting, and training—
things that are sometimes difficult to do.

To be effective, the policy should be short—two pages at most and should

contain the following:
– Objectives
– Accountability
– Reporting
– Training

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Energy Policy

Objectives
– This can contain the standard motherhood and flag statements about
energy, but the most important is that the organization will incorporate
energy efficiency into facilities and new equipment, with emphasis on life
cycle cost analysis rather than lowest initial cost

Accountability
– This should establish the organizational structure and the authority for the
energy manager, coordinators, and any committees or task groups

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Energy Policy

Reporting
– Without authority from top management, it is often difficult for the
energy manager to require others within the organization to comply with
reporting requirements necessary to properly manage energy
– The policy is the place to establish this. It also provides a legitimate reason
for requesting funds for instrumentation to measure energy usage

Training
– If training requirements are established in the policy, it is again easier to
include this in budgets
– It should include training at all levels within the organization

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BITS Pilani, Pilani Campus
Energy Auditing

• An energy audit is an inspection, survey and analysis of energy flows

for energy conservation in a building, process or system to reduce the
amount of energy input into the system without negatively affecting
the output(s).

• In commercial and industrial real estate, an energy audit is the first

step in identifying opportunities to reduce energy expense and carbon
footprints.

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Energy Auditing

As per the Energy Conservation Act, 2001, Energy Audit is defined as:

"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".

"The judicious and effective use of energy to maximize profits

(minimize costs) and enhance competitive positions"
(Cape Hart, Turner and Kennedy, Guide to Energy Management
Fairmont press inc. 1997)

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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.

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Need for energy audit

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.

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Energy Audit: Types and Methodologies

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

Energy Audit can be classified into the following two types

– Preliminary Audit
– Detailed Audit

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Energy Audit: Types and Methodologies

• Fires heaters audit

• Boilers/steam systems audit
• Electrical systems audit
• Insulation audit
• Cooling system audit
• Evolving Specific Energy Consumption
• Heat Recovery analysis/Hot steam analysis

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Preliminary Energy Audit Methodologies

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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 Detailed Energy Audit

• Detailed energy project implementation plan for a facility

• Accurate estimate of energy savings and cost
• Inventory of energy using systems, assumptions of current
operating conditions and calculations of energy use.
• Indicates how effectively each has been used as compared to
the previous method.

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Information to be collected

• Technology, processes used and equipment details

• Capacity utilization
• Amount & type of input materials used
• Water consumption
• Fuel Consumption
• Electrical energy consumption
• Steam consumption
• Other inputs such as compressed air, cooling water etc.
• Quantity & type of wastes generated
• Percentage rejection / reprocessing
• Efficiencies / yield
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Identification of Energy
Conservation Opportunities

• Fuel substitution
• Energy generation
• Energy distribution
• Energy usage by processes
• Technical and Economic feasibility

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Bibliography
WR Murphy & G McKay, “Energy Management”, Butterworth Heinemann, 2011.

National Productivity Council of India, Bureau of Energy Efficiency (BEE): General

Aspects of Energy Management and Energy Audit.

R. Parameshwaran, S. Kalaiselvam, S. Harikrishnan, A. Elayaperumal, Sustainable

thermal energy storage technologies for buildings: A review, Renewable and
Sustainable Energy Reviews 16 (2012) 2394– 2433.

Parameshwaran & Kalaiselvam, “Thermal Energy Storage Technologies for

Sustainability”, Academic Press (Elsevier), 1st Edition, 2014.

World Energy Outlook – 2010, International Energy Agency, 2010.

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Thank You
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