Energy Management and Audit

Syllabus Energy Management & Audit: Definition, Energy audit- need, Types of energy audit, Energy management (audit) approach-understanding energy costs, Bench marking, Energy performance, Matching energy use to requirement, Maximizing system efficiencies, Optimizing the input energy requirements, Fuel and energy substitution, Energy audit instruments

3.1 Definition & Objectives of Energy Management
The fundamental goal of energy management is to produce goods and provide services with the least cost and least environmental effect. The term energy management means many things to many people. One definition of energy management is: “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) Another comprehensive definition is “The strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output while holding constant or reducing total costs of producing the output from these systems” The objective of Energy Management is to achieve and maintain optimum energy procurement and utilisation, throughout the organization and: To minimise energy costs / waste without affecting production & quality To minimise environmental effects.

3.2 Principles of Energy Management
The principles of Energy Management involve the following: i. Procure all the energy needed at the lowest possible price (Example: buy from original sources, review the purchase terms) ii. Manage energy use at the highest energy efficiency (Example: improving energy use efficiency at every stage of energy transport, distribution and use) iii. Reusing and recycling energy by cascading (Example: waste heat recovery)

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3. Energy Management and Audit

iv. Use the most appropriate technology (select low investment technology to meet the present requirement and environment condition) v. Reduce the avoidable losses. (Make use of wastes generated within the plant as sources of energy and reducing the component of purchased fuels and bills)


Energy Management Skills

Energy Management involves a combination of both managerial and technical skills / knowledge. Managerial skills, which includes bringing about awareness, motivating people at all levels, changing the structure & procedure, monitoring the energy consumption, norms target setting, etc. Both the organizational and people changes are required. For example, a mere awareness campaign in an industry on switching off lights, fans and air conditioners brought about a significant reduction in energy consumption. Technical skills are a pre-requisite in improving the energy efficiency of a process or equipment such as boilers, furnaces etc. For example, to improve the boiler efficiency one need to know the principles of combustion, heat transfer and steam generation. Energy Manager should be technically well versed with manufacturing process, energy utilization technologies, in addition to awareness of statistical techniques of data processing, applied economics and cost accountancy.


Energy Management Strategy

Energy management should be seen as a continuous process. Strategies should be reviewed annually and revised as necessary. The key activities (see Figure 3.1) are outlined below: 1. Identify a Strategic Corporate Approach The starting point in energy management is to identify a strategic corporate approach to energy management. Clear accountability for energy management needs to be established, appropriate financial and staffing resources must be allocated, and reporting procedures initiated. An energy management program requires commitment from the whole organisation in order to be successful.

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3. Energy Management and Audit

2. Appoint Energy Manager The energy manager, who should be a senior staff member, will be responsible for the overall coordination of the program and will report directly to top management. Energy managers need to have a technical background, need to be familiar with the organisation’s activities and have appropriate technical support. 3. Set up an Energy Monitoring and Reporting System Successful energy management requires the establishment of a system to collect, analyse and report on the organisation’s energy costs and consumption. This will enable an overview of energy use and its related costs, as well as facilitating the identification of savings that might otherwise not be detected. The system needs to record both historical and ongoing energy use, as well as cost information from billing data, and be capable of producing summary reports on a regular basis. This information will provide the means by which trends can be analysed and tariffs reviewed. 4.Conduct Energy Audit An energy audit establishes both where and how energy is being used, and the Figure 3.1 Energy Management Steps potential for energy savings. It includes a walk-through survey, a review of energy using systems, analysis of energy use and the preparation of an energy budget, and provides a baseline from which energy consumption can be compared over time. An audit can be conducted by an employee of the organization who has appropriate expertise, or by a specialist energy-auditing firm. An energy audit report also includes recommendations for actions, which will result in energy and cost savings. It should also indicate the costs and savings for each recommended action, and a priority order for implementation.

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Formalize an Energy Management Policy Statement A written energy management policy will guide efforts to improve energy efficiency. Samples of the energy management policy.3. as declared by few progressive companies. and represents a commitment to saving energy. as well as general aims and specific targets relating to: Energy consumption reduction (electricity. are given in the following pages: Bureau of Energy Efficiency 62 . fuel oil. Energy Management and Audit 5. gas. petrol etc. An energy management policy statement includes a declaration of commitment from senior management.) Energy cost reduction (by lowering consumption and negotiating lower unit rates) Timetables Budgetary limits Energy cost centers Organisation of management resources. It will also help to ensure that the success of the program is not dependent on particular individuals in the organization.

Energy Management and Audit Bureau of Energy Efficiency 63 .3.

Energy Management and Audit Bureau of Energy Efficiency 64 .3.

Energy Management and Audit Bureau of Energy Efficiency 65 .3.

Culture and Commitment are the key driving forces for us in making Energy Conservation (ENCON) a way of life at our plant.0% minimum every year till 2007. Babrala M/s Tata Chemicals Limited in it’s endeavour to play leading role in the important economic issue of our Nation. Date: 18th April. As a part of ENCON strategy. it is committed and continually striving to be the lowest specific energy consumer in the industry it operates. and own group companies. operational practices and employ cleaner and more efficient technology as appropriate.3. Energy Management and Audit ENERGY MANAGEMENT POLICY Tata Chemicals Limited Fertilizer Division. At Babrala we believe that Communication. HSD). Babrala is committed to reduce our specific energy consumption of urea @ 1. Train and educate our Employees/Residents to be the trendsetter in the areas of ENCON. Share and enrich our experiences on energy conservation with other organization. updating hardware. by promoting the culture of innovation and creativity. Babrala P M Khanderia General Manager-Operations Bureau of Energy Efficiency 66 . to identify the ENCON opportunities. Naphtha. 2003 Place: TCL. We plan to achieve this by following: Manage efficiently the utilization of energy resources (like Natural gas. and aligning the commitment at all levels. Carry out regular internal and external audits to identify and communicate areas of improvements and benchmark continuously our performance against the world best.

we. to produce high purity metal with high conductivity to achieve minimum power losses. To achieve excellence. We shall endeavour to transform energy conservation into a strategic business goal fully aligning with technological advancements by improving the skill and knowledge of our employees for sustainable development.02 A.3. Agarwala Director (whole time) Bureau of Energy Efficiency 67 .K. our objectives therefore will be: to reduce specific energy consumption in all our operations and activities. to conduct regular management reviews to ensure continual improvement and achieve of our goal. to adopt energy efficient technologies/equipment for all new projects to ensure energy conservation awareness programme throughout the organization to recognize efforts of our employee and their family members in energy conservation initiatives to replace old energy inefficient technology/equipment with the latest energy efficient state of art technology / equipment continually. to conserve fossil fuels through enhanced use of renewable energy/recovered waste energy. to sustain energy efficiency gains by establishing and maintaining a management information system designed to support managerial decision-making. Date:10. the employees of Hindalco Industries Limited are committed and pledge to conserve Energy judiciously in all our activities. Energy Management and Audit ENERGY POLICY (Hindalco Industries Limited) As a way of life. products and services across the organization.8. to control energy consumption by periodic review and improving our processes by motivation and training practices.

technology and equipment Better plant layout As a part of our energy conservation and environment protection. J. Reduce Specific Energy Consumption by 1% per year by 2010. at Visakhapatnam Steel Plant. Maximise recovery of waste energy.3. Make energy conservation a mass movement with the involvement of all employees. are committed to optimally utilise various forms of energy in a cost effective manner to effect conservation of energy resources. Energy Management and Audit Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant ENERGY POLICY We. Dr.) ENERGY POLICY We shall strive for continuous energy economy through – Formulation of overall energy strategy and targets. we are committed to reduce specific energy consumption by 1% every year till 2010.N. All round participation of all employees through Small Group Activities Improved capacity utilization Upgradation of process. B.D. PALOD President Bureau of Energy Efficiency 68 . Maximise the use of cheaper and easily available forms of energy. To accomplish this we will : • • • • • • Monitor closely and control the consumption of various forms of energy through an effective Energy Management System. Singh Chairman-cum-Managing Director Date 14-06-2002 KESORAM RAYON (Division of Kesoram Industries Ltd. Adopt appropriate energy conservation technologies.

effectiveness in the cost involved in the operations and ensuring that production quality and quantity. P. health of people are maintained.Maral Sarovar.B.3. Energy Management and Audit NRC LIMITED ENERGY CONSERVATION POLICY NRC Limited is committed to energy conservation for all its products & related operations. Efforts will be made to reduce energy consumption in every possible ways as under: • • • • • Replacing old & outdated machinery. environment. publicity about need for energy conservation We are committed to reduce our energy consumption by minimum 1% every year till 2010. A.) ENERGY CONSERVATION POLICY We are committed to conserve the energy which is a scarce resource with the requisite consistency in the efficiency.S. ANJANE PRESIDENT Bureau of Energy Efficiency 69 . Sharma Managing Director Maral Overseas Limited P. equipment by new energy efficient equipment Benchmarking all products/services for energy consumption by comparison at regional as well as national level Conducting energy conservation studies including audits with a view to minimise waste.P. safety. We are also committed to monitoring continuously the saving achieved and reduce its specific energy consumption by minimum of 1% every year.Road Khalbujurg – 451660 District Khargone (M. M S.O. Creating awareness among employees &nearby population through campaigns.

Prepare and Undertake a Detailed Project Implementation Plan A project implementation plan should be developed as part of the energy audit and be endorsed by management. including formal training. to adopting asset acquisition programs that will reduce energy consumption. which will achieve maximum financial benefits at least cost to the organisation. renegotiating electricity supply arrangements etc. Annual Review An energy management program will be more effective if its results are reviewed annually. Implement a Staff Awareness and Training Program A key ingredient to the success of an energy management program is maintaining a high level of awareness among staff. The plan should include an implementation time table and state any funding and budgetary requirements. and to report results at least at 12-month intervals. Staff may need training from specialists on energy saving practices and equipment. 7. Review of energy management policy and strategies will form the basis for developing an implementation plan for the next 12 months. posters and publications. It is important to communicate program plans and case studies that demonstrate savings. and by incorporating energy management into existing training programs. Bureau of Energy Efficiency 70 . newsletters.3. 8. Projects may range from establishing or changing operational procedures to ensure that plant and equipment use minimum energy. Energy Management and Audit 6. This can be achieved in a number of ways. An overall strategy could be to introduce energy management projects.

3. 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”.1 Need for Energy Audit In any industry. and Potential and magnitude of cost reduction desired Bureau of Energy Efficiency 71 . by lending technically feasible solutions with economic and other organizational considerations within a specified time frame. Energy Management and Audit 3. The Energy Audit would give a positive orientation to the energy cost reduction. labour and materials.5. It quantifies energy usage according to its discrete functions. Energy Audit provides a “ benchmark” (Reference point) for managing energy in the organization and also provides the basis for planning a more effective use of energy throughout the organization. retrofit for energy conservation equipment etc. Energy Audit is defined as “the verification. preventive maintenance and quality control programmes which are vital for production and utility activities. The primary objective of Energy Audit is to determine ways to reduce energy consumption per unit of product output or to lower operating costs. and thus energy management function constitutes a strategic area for cost reduction. identify energy conservation technologies. 3. Such an audit programme will help to keep focus on variations which occur in the energy costs. In general. 2001. energy would invariably emerge as a top ranker. 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. and serves to identify all the energy streams in a facility. Energy Audit is the translation of conservation ideas into realities. As per the Energy Conservation Act.5 Energy Audit: Types And Methodology Energy Audit is the key to a systematic approach for decision-making in the area of energy management.2 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. 3. availability and reliability of supply of energy. If one were to relate to the manageability of the cost or potential cost savings in each of the above components. decide on appropriate energy mix. Industrial energy audit is an effective tool in defining and pursuing comprehensive energy management programme. It attempts to balance the total energy inputs with its use. the three top operating expenses are often found to be energy (both electrical and thermal).5.

and includes detailed energy cost saving calculations and project cost. II and III.4 Detailed Energy Audit Methodology A comprehensive audit provides a detailed energy project implementation plan for a facility.3. Energy Management and Audit Thus Energy Audit can be classified into the following two types.5. Detailed energy auditing is carried out in three phases: Phase I. the methodology of Energy Audits needs to be flexible. since it evaluates all major energy using systems.Post Audit Phase A Guide for Conducting Energy Audit at a Glance Industry-to-industry. Energy Manager and Energy Auditor may follow these steps to start with and add/change as per their needs and industry types. one of the key elements is the energy balance. assumptions of current operating conditions and calculations of energy use. i) Preliminary Audit ii) Detailed Audit 3. accounts for the energy use of all major equipment. In a comprehensive audit. A comprehensive ten-step methodology for conduct of Energy Audit at field level is presented below. This estimated use is than compared to utility bill charges.3 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.Audit Phase Phase III . Bureau of Energy Efficiency 72 . This is based on an inventory of energy using systems. or easily obtained data 3.5. This type of audit offers the most accurate estimate of energy savings and cost. Phase I . It considers the interactive effects of all projects.Pre Audit Phase Phase II .

Production • / Plant Manager • • Conduct of brief meeting / • awareness programme with • all divisional heads and • persons concerned (2-3 hrs. . log sheet.3. fan Step 4 • Conduct monitoring survey and • Step 5 • Conduct of detailed trials /experiments for selected • energy guzzlers Bureau of Energy Efficiency 73 . Establish/organize a Energy audit team Organize Instruments & time frame Macro Data collection (suitable to type of industry. compressed air & steam distribution. awareness creation PURPOSE / RESULTS Step 2 • Step 3 Phase II –Audit Phase • Primary data gathering. & Energy Utility Diagram • • • • Historic data analysis. name plate. water.).) Familiarization of process/plant activities First hand observation & Assessment of current level operation and practices Building up cooperation Issue questionnaire for each department Orientation. PF. Trials/Experiments: . and Lighting survey with portable instruments for collection of more and accurate data. interview) Measurements : Motor survey. Baseline data collection Prepare process flow charts All service utilities system diagram (Example: Single line power distribution diagram. Insulation. operating data and schedule of operation Annual Energy Bill and energy consumption pattern (Refer manual.Load variations trends in pumps. kWh etc. Energy Management and Audit Ten Steps Methodology for Detailed Energy Audit Step No Step 1 • • • PLAN OF ACTION Phase I –Pre Audit Phase • Plan and organise Walk through Audit Informal Interview with • Energy Manager. Design. Confirm and compare operating data with design data.24 hours power monitoring (MD. • Process Flow Diagram.) Resource planning.

economic viability and prioritization of ENCON options for implementation Select the most promising projects Prioritise by low. medium. and refine ideas Review the previous ideas suggested by unit personal Review the previous ideas suggested by energy audit if any Use brainstorming and value analysis techniques Contact vendors for new/efficient technology Assess technical feasibility.3. • Step 8 • Cost benefit analysis • • • Step9 • Reporting & Presentation to the Top Management • Phase III –Post Audit phase Step10 • Implementation and Followup Assist and Implement ENCON recommendation measures and Monitor the performance Action plan. develop. Schedule for implementation Follow-up and periodic review Bureau of Energy Efficiency 74 . long term measures Documentation. Energy Management and Audit Step6 • Analysis of energy use • Step 7 • Identification and development of Energy Conservation (ENCON) opportunities compressors etc. Boiler/Efficiency trials for (4 – 8 hours) Furnace Efficiency trials Equipments Performance experiments etc Energy and Material balance & energy loss/waste analysis Identification & Consolidation ENCON measures Conceive. Report Presentation to the top Management.

at nights and at weekends as well as during normal daytime working hours. steam distribution. • • • • Discuss economic guidelines associated with the recommendations of the audit. kWh. Initial Site Visit and Preparation Required for Detailed Auditing An initial site visit may take one day and gives the Energy Auditor/Engineer an opportunity to meet the personnel concerned. To identify the instrumentation required for carrying out the audit. Tour the site accompanied by engineering/production The main aims of this visit are: • • • • • To finalise Energy Audit team To identify the main energy consuming areas/plant items to be surveyed during the audit. Whenever possible. Analyse the major energy consumption data with the relevant personnel.3. Bureau of Energy Efficiency 75 . An initial study of the site should always be carried out. To identify any existing instrumentation/ additional metering required. To decide whether any meters will have to be installed prior to the audit eg. energy and material balances for specific plant departments or items of process equipment are carried out. as the planning of the procedures necessary for an audit is most important. and investigate. Energy Management and Audit Phase I –Pre Audit Phase Activities A structured methodology to carry out an energy audit is necessary for efficient working. major energy consuming centers To create awareness through meetings/ programme Phase II. Obtain site drawings where available – building layout. To plan with time frame To collect macro data on plant energy resources. oil or gas meters. steam. a comprehensive audit can take from several weeks to several months to complete. compressed air distribution. to ensure that nothing is overlooked. to familiarize him with the site and to assess the procedures necessary to carry out the energy audit. During the initial site visit the Energy Auditor/Engineer should carry out the following actions: • Discuss with the site’s senior management the aims of the energy audit. electricity distribution etc. Detailed studies to establish.Detailed Energy Audit Activities Depending on the nature and complexity of the site. checks of plant operations are carried out over extended periods of time.

Energy Management procedures and energy awareness training programs within the establishment. which must then be performed to justify the implementation of those conservation measures that require investments. production cost and productivity levels in terms of product per raw material inputs. The audit team should collect the following baseline data: Technology. and will evaluate the efficiency of each step of the manufacturing process. Energy cost and tariff data 4. processes used and equipment details Capacity utilisation Amount & type of input materials used Water consumption Fuel Consumption Electrical energy consumption Steam consumption Other inputs such as compressed air. 8. by major items of process equipment. Energy consumption by type of energy. Means of improving these efficiencies will be listed. by end-use 2. use of scrap or waste products. process modifications. Existing baseline information and reports are useful to get consumption pattern. Material balance data (raw materials. production of by-products for re-use in other industries. and at least a preliminary assessment of the cost of the improvements will be made to indicate the expected payback on any capital investment needed. steam).compressed air. Sources of energy supply (e. etc. Process and material flow diagrams 5.3.) 3. The audit report should conclude with specific recommendations for detailed engineering studies and feasibility analyses. intermediate and final products. cooling water etc Quantity & type of wastes generated Percentage rejection / reprocessing Efficiencies / yield Bureau of Energy Efficiency 76 . 6. Energy Management and Audit The audit report will include a description of energy inputs and product outputs by major department or by major processing function. The information to be collected during the detailed audit includes: 1. electricity from the grid or self-generation) 7. Generation and distribution of site services (eg. and the use of co-generation systems (combined heat and power generation). by department. recycled materials. Potential for fuel substitution.g.

the unit operations such as germinator. identify waste streams and obvious energy wastage An overview of unit operations. In the above process. prefermentor. not the accuracy that is technically possible • measurement equipment can be inexpensive (flow rates using a bucket and stopwatch) • the quality of the data must be such that the correct conclusions are drawn (what grade of product is on. Existing drawings. is the production normal etc) • define how frequent data collection should be to account for process variations. Example: A flowchart of Penicillin-G manufacturing is given in the figure3. • measurement exercises over abnormal workload periods (such as startup and shutdowns) • design values can be taken where measurements are difficult (cooling water through heat exchanger) DO NOT ESTIMATE WHEN YOU CAN CALCULATE DO NOT CALCULATE WHEN YOU CAN MEASURE Draw process flow diagram and list process steps. Note that waste stream (Mycelium) and obvious energy wastes such as condensate drained and steam leakages have been identified in this flow chart The audit focus area depends on several issues like consumption of input resources.2 below. fermentor. areas of material and energy use and sources of waste generation should be gathered and should be represented in a flowchart as shown in the figure below. and extraction are the major conservation potential areas identified. Bureau of Energy Efficiency 77 . Here are some basic tips to avoid wasting time and effort: • measurement systems should be easy to use and provide the information to the accuracy that is needed. Energy Management and Audit DATA COLLECTION HINTS It is important to plan additional data gathering carefully. records and shop floor walk through will help in making this flow chart. energy efficiency potential. important process steps. impact of process step on entire process or intensity of waste generation / energy consumption.3. Simultaneously the team should identify the various inputs & output streams at each process step.

Cooling water Chilled water Condensate Raw Material GERMINATOR PREFERMENTOR Steam Leak Seed Inoculation Raw Material Steam. Cogeneration. biomass gasifiers. Bureau of Energy Efficiency 78 . Energy Management and Audit PENICILLIN-G FERMENTATION Energy Steam. hot water.2 Identification of Energy Conservation Opportunities Fuel substitution: Identifying the appropriate fuel for efficient energy conversion Energy generation :Identifying Efficiency opportunities in energy conversion equipment/utility such as captive power generation. Air. Etc. Cooling water Chilled water Condensate Raw Material Steam. optimal loading of DG sets. Air. etc. efficienct energy conversion equipment. optimising existing efficiencies. Energy usage by processes: This is where the major opportunity for improvement and many of them are hidden. cables. thermic fluid heating. Process analysis is useful tool for process integration measures. Energy distribution: Identifying Efficiency opportunities network such as transformers.3. minimum excess air combustion with boilers/thermic fluid heating. Air. high efficiency DG sets. Treated Water. steam generation in boilers. Cooling water Chilled water Condensate FERMENTOR NON FILTERED BROTH TANK FILTER PRESS Mycelium to ETP Raw Material Chilled Brine Compressed Air. cooling water. compressed air. Cooling water Chilled water. Raw Water Steam. Brine Condensate Waste Stream Mother liquor to Extraction EXTRACTION Impurities with Waste Water to ETP Stream Penicillin-G Figure 3. Air. switchgears and power factor improvement in electrical systems and chilled water.

simplest of the methods. Internal Rate of Return method. Net Present Value method etc. 3. Refer Table 3. payback is usually sufficient. A sample worksheet for assessing economic feasibility is provided below: Sample Worksheet for Economic Feasibility Name of Energy Efficiency Measure 1. reliability. Bureau of Energy Efficiency 79 . a number of potential energy saving projects may be identified. Annual savings Cost of capital • Thermal Energy Maintenance • Electrical Energy Manpower • Raw material Energy • Waste disposal Depreciation Net Savings /Year (Rs. Other projects have to be analyzed. Annual operating costs • • • • • 3. which have attractive economic viability. These projects are generally complex and may require long lead times before they can be implemented. Projects relating to energy cascading and process changes almost always involve high costs coupled with high returns. For low investment short duration measures. Low cost – high return. High cost – high return Normally the low cost – high return projects receive priority. production or process.3. 2. service etc The impact of energy efficiency measure on safety./year) Payback period in months = (Annual savings-annual operating costs) = (Investment/net savings/year) x 12 Classification of Energy Conservation Measures Based on energy audit and analyses of the plant. Example: Pay back method. The maintenance requirements and spares availability The Economic viability often becomes the key parameter for the management acceptance. Medium cost – medium return. Energy Management and Audit Technical and Economic feasibility The technical feasibility should address the following issues • • • Technology availability. space. engineered and budgeted for implementation in a phased manner. quality. The economic analysis can be conducted by using a variety of methods. skilled manpower. and may require careful scrutiny before funds can be committed. These may be classified into three categories: 1.1 for project priority guidelines. Investment • • • • Equipments Civil works Instrumentation Auxiliaries 2.

1 Project Priority Guideline Priority A . The following format is applicable for most of the industries. Energy Management and Audit Table 3. lack of confirmation Existing technology is inadequate Need major breakthrough Risk / Feasibility No Risk/ Highly feasible Minor operating risk/May be feasible Doubtful Not feasible 3.3. However the format can be suitably modified for specific requirement applicable for a particular type of industry.Good B -May be C -Held D -No Economical Feasibility Well defined and attractive Well defined and only marginally acceptable Poorly defined and marginally unacceptable Clearly not attractive Technical Feasibility Existing technology adequate Existing technology may be updated.6 Energy Audit Reporting Format After successfully carried out energy audit energy manager/energy auditor should report to the top management for effective communication and implementation. A typical energy audit reporting contents and format are given below. Bureau of Energy Efficiency 80 .

2. overhead.1 Brief description of manufacturing process 2.0 Production Process Description 2.2.2 Energy Audit Team Process flow diagram and Major Unit operations 2.4 3.2.5 3. energy.1 3.6 Electricity Steam Water Compressed air Chilled water Cooling water Bureau of Energy Efficiency 81 . Quantity and Costs 3.2. others) 1. manpower.3 Component of production cost (Raw materials.3 3. Energy Management and Audit Report on DETAILED ENERGY AUDIT TABLE OF CONTENTS i.2 3.3 Major Raw material Inputs.1 General Plant details and descriptions 1. Executive Summary Energy Audit Options at a glance & Recommendations 1.0 Introduction about the plant 1. chemicals. Acknowledgement ii.0 Energy and Utility System Description 3.2 List of Utilities Brief Description of each utility 3.1 3.2.4 Major Energy use and Areas 2.

4 Furnace efficiency Analysis 5.9 Electric motor load analysis 5. Energy Management and Audit 4. Annual Energy & Cost savings.2 Boiler efficiency assessment 5.1 Specific Energy consumption 5.0 Energy Conservation Options & Recommendations 6.1 6. List of instruments A3.0 Detailed Process flow diagram and Energy& Material balance 4.10 Lighting system 6.5 Cooling water system performance assessment 5. and payback Implementation plan for energy saving measures/Projects ANNEXURE A1.2 Water balance for entire industry 5. temperature.6 DG set performance assessment 5.3. List of Vendors and Other Technical details Bureau of Energy Efficiency 82 .0 Energy efficiency in utility and process systems 5. pressures of all inputoutput streams 4. Medium cost and high investment Cost.7 Refrigeration system performance 5.2 List of options in terms of No cost/ Low Cost.3 Thermic Fluid Heater performance assessment 5.1 Flow chart showing flow rate. List of Energy Audit Worksheets A2.8 Compressed air system performance 5.

No. Energy Saving Recommendations Capital Annual Annual Investment Energy (Fuel Savings Rs. Table 3.2 Summary of Energy Saving Recommendations S.Lakhs (Rs. Energy Management and Audit The following Worksheets (refer Table 3.3) can be used as guidance for energy audit assessment and reporting.3 Types and Priority of Energy Saving Measures Annual Type of Energy Annual Savings Saving Options Electricity /Fuel savings KWh/KL /T A B (Rs Lakhs) Priority No Investment (Immediate) Operational Improvement Housekeeping Low Investment (Short to Medium Term) Controls Equipment Modification Process change High Investment (Long Term) Energy efficient Devices Product modification Technology Change C - Bureau of Energy Efficiency 83 .3.Lakhs) & Electricity) Savings (kWh/kl/MT Simple Payback period 1 2 3 4 Total Table 3.2 & Table 3.

3.80 = 47 kW (66. By adding this flow into the main cooling tower. It is suggested to stop the DG set cooling tower operation.5 kW 2 Nos x 22 kW (22 x2 +7. A separate cooling tower is also operating for DG set operation continuously.000 K.000 Units/Year 3. Energy Management and Audit Reporting Format for Energy Conservation Recommendations A: Title of Recommendation B: Description of Existing System and its operation : : Combine DG set cooling tower with main cooling tower Main cooling tower is operating with 30% of its capacity.55) = 7 kW = = = = = 47 – 7 = 40 kW 40kWx 8400hr = 3.4 Lakh per year Rs 1.67 x 6) / (102 x 0.000 xRs. The rated cooling water flow is 5000 m3/hr. 5000 m / hr 8 oC 3000 m3/hr 4 oC (3000 x 4)/(5000 x 8) = 30% 240 m3/hr 5oC 1200.67 l/s) with 6 kg/cm2 Net Energy savings E: Cost Benefits Annual Energy Saving Potential Annual Cost Savings Investment (Only cost of piping) Simple Pay back Period = = = = = = = = = = = = 2 nos x 7.Cal/hr 3 C: Description of Proposed system and its operation : D: Energy Saving Calculations Capacity of main cooling tower Temp across cooling tower (design) Present capacity Temperature across cooling tower(operating) % loading of main cooling tower Capacity of DG Set cooling tower Temp across the tower Heat Load (240x1000 x 1x 5) Power drawn by the DG set cooling tower No of pumps and its rating No of fans and its rating Power consumption@ 80% load Additional power required for main cooling tower for additional water flow of 240m3/h (66.36.00 = Rs.13. The DG Set cooling water flow is only 240 m3/h.4. besides improving the %loading of main cooling tower.36.5Lakhs Less than 2 months Bureau of Energy Efficiency 84 .Two cooling water pumps are in operation continuously with 50% of its rated capacity. will eliminate the need for a separate cooling tower operation for DG set.5 x2) x.

Few are listed below: • Fuel oil • LSHS • LDO • LPG • COAL • LIGNITE • WOOD ETC. cost and quality are the main three factors that should be considered while purchasing. transport charge. which gives a base-line for future reference Energy invoices may indicate the potential for savings when related to production requirements or to air conditioning requirements/space heating etc.4:Annual energy bill or Kiloliters. Coal 18% Lignite 4% LECO fine 30% Power 36% HSD 1% Furnace Oil 11% Total Energy Bill . 6 Crores/annum Understanding fuel cost is fairly simple and it is purchased in Tons Figure 3. Energy Management and Audit 3. When electricity is purchased on the basis of maximum demand tariff They can suggest where savings are most likely to be made.7 Understanding Energy Costs Understanding energy cost is vital factor for awareness creation and saving calculation. In such cases. Energy invoices can be used for the following purposes: They provide a record of energy purchased in a given year. type of transport Quality of fuel (contaminations. Availability. In many industries sufficient meters may not be available to measure all the energy used. The following factors should be taken into account during procurement of fuels for energy efficiency and economics. moisture etc) Energy content (calorific value) Bureau of Energy Efficiency 85 . The annual company balance sheet is the other sources where fuel cost and power are given with production related information.Rs. In later years invoices can be used to quantify the energy and cost savings made through energy conservation measures Fuel Costs A wide variety of fuels are available for thermal energy supply. • • • Price at source.3. invoices for fuels and electricity will be useful.

GCV) =4000 kcal/kg ( 28 GJ/ton) Bureau of Energy Efficiency 86 .e. kWh (i.000 60. etc.00.000 kcal/litre ( 0. Giga joules. kVA (i. 20. Government.00/kWh Rs. but also city to city and consumer to consumer though it does the same work everywhere. Real power use versus Apparent power use factor ) Other incentives and penalties applied from time to time High tension tariff and low tension tariff rate changes Slab rate cost and its variation Type of tariff clause and rate for various categories such as commercial.. residential. P.000/ton Monthly Bill Rs. Electricity(1 kWh) = 860 kcal/kWh (0.00.F (i. Peak/Non-peak period (i. kCals etc.3.10.e.4 Type of energy Electricity Fuel oil Coal Total Original units 5. Many factors are involved in deciding final cost of purchased electricity such as: • • • • • • • • • • Maximum demand charges.000 20.00. How fast the electricity is used? ) Energy Charges. kWh of electricity. tonne of coal. GCV) =10. To allow comparison of energy quantities these must be converted to a common unit of energy such as kWh. Tariff rate for developed and underdeveloped area/States Tax holiday for new projects Example: Purchased energy Bill A typical summary of energy purchased in an industry based on the invoices Table 3.4.000 20.000 Unfortunately the different forms of energy are sold in different units e.2.00.000 kWh 200. agricultural.0411 GJ/litre) Coal (Gross calorific value.e.kL 1000 tons Unit Cost Rs.g. Energy Management and Audit Power Costs Electricity price in India not only varies from State to State. When electricity is utilized ?) Power factor Charge.0036 GJ) Heavy fuel oil (Gross calorific value.000 kL Rs. liters of fuel oil. industrial. How much electricity is consumed? ) TOD Charges..00.e.

as otherwise findings can be grossly misleading. relevant production features. However. kWh/MT of liquid metal output (in a foundry) Equipment / utility related e. kcal/kg. % thermal efficiency of a boiler plant e.g. % cooling tower effectiveness in a cooling tower e.g. kWh/MT clinker or cement produced (cement plant) e. kWh/MT. Energy Management and Audit 3. cost. Few comparative factors. help to understand effects of capacity utilization on energy use efficiency and costs on a broader scale.8 Benchmarking and Energy Performance Benchmarking of energy consumption internally (historical / trend analysis) and externally (across similar industries) are two powerful tools for performance assessment and logical evolution of avenues for improvement.g. it would be important to ascertain similarities.3. Trend analysis of energy consumption. paper produced (Paper plant) e.g. specific energy consumption. kcal/kWh Power produced (Heat rate of a power plant) e.g.g. kWh/kg yarn produced (Textile unit) e.g. External benchmarking relates to inter-unit comparison across a group of similar units. The benchmark parameters can be: • Gross production related e.g. kWh /litre in a diesel power generation plant. Historical data well documented helps to bring out energy consumption and cost trends month-wise / day-wise.g. which need to be looked into while benchmarking externally are: • • • • Scale of operation Vintage of technology Raw material specifications and quality Product specifications and quality Benchmarking energy performance permits • • • • • Quantification of fixed and variable energy consumption trends vis-à-vis production levels Comparison of the industry energy performance with respect to various production levels (capacity utilization) Identification of best practices (based on the external benchmarking data) Scope and margin available for energy consumption and cost reduction Basis for monitoring and target setting exercises. 87 • Bureau of Energy Efficiency .g. kWh/ton of refrigeration (on Air conditioning plant) e.g. Million kilocals/MT Urea or Ammonia (Fertilizer plant) e. kWh/NM3 of compressed air generated e.

For a fertilizer plant – capacity utilization(%) and on-stream factor are two inputs worth comparing while mentioning specific energy consumption For a foundry unit – melt output. related crucial process parameters need mentioning for meaningful comparison among peers. Portland and process used (wet/dry) are to be reported alongside kWh/MT figure. polyester/cotton. inlet cooling water temperature. raw material (recycling extent). Energy Management and Audit While such benchmarks are referred to. blaine number (fineness) i. Cooling tower effectiveness – ambient air wet/dry bulb temperature. high carbon steel/cast iron etc. type of yarn i. For a power plant / cogeneration plant – plant % loading. GSM quality is some important factors to be reported along with kWh/MT. type. relative humidity. • • • • • • • Bureau of Energy Efficiency 88 . are useful comparators alongside thermal efficiency and more importantly. kcal/Kg figures. For a textile unit – average count. air and circulating water flows are required to be reported to make meaningful sense. For an Air conditioning (A/c) plant – Chilled water temperature level and refrigeration load (TR) are crucial for comparing kW/TR. number or power trips could be some useful operating parameters to be reported while mentioning specific energy consumption data. condenser vacuum. Diesel power plant performance – is to be compared at similar loading %. Compressed air specific power consumption – is to be compared at similar inlet air temperature and pressure of generation. furnace type. temperature.) raw material mix. steady run condition etc. may mean a lot in benchmarking exercise for meaningful comparison. would be important factors to be mentioned alongside heat rate (kcal/kWh). For instance.3. is to be reported along side kWh/square meter. For a paper plant – paper type. For a boiler plant – fuel quality. composition (mild steel.e. whether thermal efficiency is on gross calorific value basis or net calorific value basis or whether the computation is by direct method or indirect heat loss method. in the above case: • • • • For a cement plant – type of cement. flow. steam pressure.e.

However. It compares the change in energy consumption from one year to the other considering production output. it is necessary to determine the energy that would have been required to produce this year production output. the higher the number will be. The result is divided by the reference year equivalent and multiplied by 100 to obtain a percentage. Plant energy performance = Reference year equivalent – Current year’s energy x 100 Reference year equivalent The energy performance is the percentage of energy saved at the current rate of use compared to the reference year rate of use. For a meaningful comparison. Production factor Production factor is used to determine the energy that would have been required to produce this year’s production output if the plant had operated in the same way as it did in the reference year. Plant energy performance monitoring compares plant energy use at a reference year with the subsequent years to determine the improvement that has been made. if the plant had operated in the same way as it did during the reference year. a plant production output may vary from year to year and the output has a significant bearing on plant energy use. and is calculated by subtracting the current year’s energy use from the reference years equivalent.3. Energy Management and Audit Plant Energy Performance Plant energy performance (PEP) is the measure of whether a plant is now using more or less energy to manufacture its products than it did in the past: a measure of how well the energy management programme is doing. The greater the improvement. Production factor = Current year’s production Reference year’s production Reference Year Equivalent Energy Use The reference year’s energy use that would have been used to produce the current year’s production output may be called the “reference year energy use equivalent” or “reference year equivalent” for short. The reference year equivalent is obtained by multiplying the reference year energy use by the production factor (obtained above) Reference year equivalent = Reference year energy use x Production factor The improvement or deterioration from the reference year is called “energy performance” and is a measure of the plant’s energy management progress. This calculated value can then be compared with the actual value to determine the improvement or deterioration that has taken place since the reference year. It is the ratio of production in the current year to that in the reference year. Bureau of Energy Efficiency 89 . It is the reduction or increase in the current year’s energy use over the reference.

wastages etc.10 Maximising System Efficiency Once the energy usage and sources are matched properly. fan resizing for better efficiency.3. Worst case design. boilers. installing variable speed drives Eliminate damper operations in fans by impeller trimming. while optimization is the energy manager’s mandate and many situations present themselves towards an exercise involving graceful matching of energy equipment capacity to end-use needs. furnaces. Some examples being: • • • • • Eliminate throttling of a pump by impeller trimming. PEP can just as easily be used for monthly reporting as yearly reporting. wherever significant energy efficiency margins exist. heaters and other energy conservation equipment. installing variable speed drives. 3. fans. is a designer’s characteristic. has shown that once a plant has started measuring yearly energy performance. pulley diameter modification for belt drives. resizing pump. Energy Management and Audit Monthly Energy Performance Experience however. Some illustrations in this context are: • • • • Eliminate steam leakages by trap improvements Maximise condensate recovery Adopt combustion controls for maximizing combustion efficiency Replace pumps. Moderation of chilled water temperature for process chilling needs Recovery of energy lost in control valve pressure drops by back pressure/turbine adoption Adoption of task lighting in place of less effective area lighting 3. the next step is to operate the equipment efficiently through best practices in operation and maintenance as well as judicious technology adoption. air compressors.9 Matching Energy Usage to Requirement Mismatch between equipment capacity and user requirement often leads to inefficiencies due to part load operations. refrigeration compressors. management wants more frequent performance information in order to monitor and control energy use on an on-going basis. Bureau of Energy Efficiency 90 .

11 Fuel and Energy Substitution Fuel substitution: Substituting existing fossil fuel with more efficient and less cost/less polluting fuel such as natural gas. There are two ways to reduce energy dependency. 3. The range of measures could include: • • • • Shuffling of compressors to match needs. Energy is an important input in the production. Replacement of coal by coconut shells. Kerosene and Liquefied Petroleum Gas (LPG) have substituted soft coke in residential use. rice husk etc. Fuel substitution has taken place in all the major sectors of the Indian economy. Optimisation of transformer operation with respect to load. Replacement of LDO by LSHS Few examples of energy substitution Replacement of electric heaters by steam heaters Replacement of steam based hotwater by solar systems Bureau of Energy Efficiency 91 . Energy Management and Audit Optimising the Input Energy Requirements Consequent upon fine-tuning the energy use practices. energy conservation and substitution. attention is accorded to considerations for minimizing energy input requirements. Periodic review of insulation thickness Identify potential for heat exchanger networking and process integration. biogas and locally available agro-residues. power and sponge iron industries.3. Few examples of fuel substitution Natural gas is increasingly the fuel of choice as fuel and feedstock in the fertilizer. petrochemicals.

(50) = Rs. In the same plant a coconut chip fired boiler is operating continuously with good performance. = Rs.) = Coconut chips fired Heater = 4200 kcal/kg = 72 % = 15 lakh kcal / hour = 7200 x 700 Rs.200 hrs.3. : 130 lakh (7200 x 1800 Rs. 70lakh = Rs.80 lakh ./hr. Energy Management and Audit Case Study : Example on Fuel Substitution A textile process industry replaced old fuel oil fired thermic fluid heater with agro fuel fired heater. The economics of the project are given below: A: Title of Recommendation B: Description of Existing System and its operation C: Description of Proposed system and its operation D: Energy Saving Calculations Old System Type of fuel Firing GCV Avg. Thermal Efficiency Heat Duty Operating Hours Annual Fuel Cost Modified System Type of fuel saving GCV Average Thermal Efficiency Heat Duty Annual Operating Cost Annual Savings Additional Auxiliary Power + Manpower Cost Net Annual Saving Investment for New Coconut Fired heater Simple pay back period : Furnace Oil fired heater : 10. 10 lakh = Rs. It was suggested to replace the oil fired thermic fluid heater with coconut chip fired boiler as the company has the facilities for handling coconut chip fired system. Bureau of Energy Efficiency 92 .35 lakh = 6 months : : : Use of Agro Fuel (coconut chips) in place of Furnace oil in a Boiler A thermic fluid heater with furnace oil currently./hr = 50 lakh = 130 .200 kcal/kg : 82% : 15 lakh kcal / hour : 25 days x 12 month x 24 hours = 7.

e on running motors without any need to stop the motor. moisture content. CO. noise and vibration. 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. kVAr. Bureau of Energy Efficiency 93 . dust concentration. The parameters generally monitored during energy audit may include the following: Basic Electrical Parameters in AC &DC systems – Voltage (V). liquid flow. Energy Management and Audit 3.3. Energy consumption (kWh). NOx. kW. These instruments are applied on-line i. RPM. Hertz. etc. Instant measurements can be taken with hand-held meters. while more advanced ones facilitates cumulative readings with print outs at specified intervals. Frequency (Hz). easy to operate and relatively inexpensive. apparent power (demand) (kVA). SOx. Current (I). Key instruments for energy audit are listed below.12 Energy Audit Instruments The requirement for an energy audit such as identification and quantification of energy necessitates measurements. These instruments must be portable. Amps and Volts. flue gas analysis – CO2. combustion efficiency etc. TDS. PF. Active power (kW). Reactive power (kVAr). radiation. Electrical Measuring Instruments: These are instruments for measuring major electrical parameters such as kVA. Parameters of importance other than electrical such as temperature & heat flow. air velocity. Combustion analyzer: This instrument has in-built chemical cells which measure various gases such as O2. NOX and SOX. CO. relative humidity. Power factor. durable. Harmonics. air and gas flow. PH. In addition some of these instruments also measure harmonics. O2. these measurements require the use of instruments.

For surface temperature. Calorific values of common fuels are fed into the microprocessor which calculates the combustion efficiency. a leaf type probe is used with the same instrument. A chemical reaction changes the liquid volume revealing the amount of gas. Contact thermometer: These are thermocouples which measures for example flue gas. hot water temperatures by insertion of probe into the stream. Infrared Thermometer: This is a non-contact type measurement which when directed at a heat source directly gives the temperature read out. surface temperatures etc. Bureau of Energy Efficiency 94 . A separate fyrite can be used for O2 and CO2 measurement. Fyrite: A hand bellow pump draws the flue gas sample into the solution inside the fyrite. This instrument is useful for measuring hot spots in furnaces. hot air. Energy Management and Audit Fuel Efficiency Monitor: This measures oxygen and temperature of the flue gas.3.

The meter directly gives the flow. belt slip and loading. Energy Management and Audit Pitot Tube and manometer: Air velocity in ducts can be measured using a pitot tube and inclined manometer for further calculation of flows. Speed Measurements: In any audit exercise speed measurements are critical as thay may change with frequency. Water and other fluid flows can be easily measured with this meter. Tachometer Stroboscope Bureau of Energy Efficiency 95 . A simple tachometer is a contact type instrument which can be used where direct access is possible. There is a transmitter and receiver which are positioned on opposite sides of the pipe. Water flow meter: This non-contact flow measuring device using Doppler effect / Ultra sonic principle. More sophisticated and safer ones are non contact instruments such as stroboscopes.3.

Bureau of Energy Efficiency 96 . Lux meters: Illumination levels are measured with a lux meter. Energy Management and Audit 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.3. converts to electrical impulses which are calibrated as lux. It consists of a photo cell which senses the light output.

Turner and Kennedy Cleaner Production – Energy Efficiency Manual for GERIAP. 2. 3.nz www.eeca. 15. 13.com/ Bureau of Energy Efficiency 97 . 9. 7. 10. 16. 8. NPC energy audit manual and reports Energy management handbook. 5. 2. Cape Hart. 12. 4. 3. UNEP. Bangkok prepared by National Productivity Council www. Energy Management and Audit QUESTIONS 1. List down the objective of energy management? What are the managerial functions involved in energy management? Explain why managerial skills are as important as technical skills in energy management? What are the various steps in the implementation of energy management in an organization? State the importance of energy policy for industries? Explain the role of training and awareness in energy management programme? What is an energy audit? Explain briefly the difference between preliminary and detailed energy audits? What is the significance of knowing the energy costs? What are the benefits of benchmarking energy consumption? Explain the implications of part load operation of energy equipment with examples? What do you understand by the term fuel substitution? Give examples. 11. 14.energyusernews. 4.3.Wayne C. Turner Guide to Energy Management.govt. John Wiley and Sons . 6. What are the parameters that can be measured by on line power analyser? Name the one instrument used to measure CO2 from boilers stack is (a) Infrared thermometer (b) Fyrite (c) Anemometer (d) Pitot tube Non contact flow measurement can be carried out by (a) Orifice meter (b) Turbine flow meter (c) Ultrasonic flow meter (d) Magnetic flow meter Non contact speed measurements can be carried out by (a) Tachometer (b) Stroboscope (c) Oscilloscope (d) Odometer REFERENCES 1.

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