Energy Management & Audit

Definition of Energy Audit
The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions 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

Types of Energy Audit
‡ Walk Through or Preliminary energy audit ‡ Detailed energy audit ‡ Type of energy audit chosen depends on
± Function and type of industry ± Depth to which final audit is needed ± Potential and magnitude of cost reduction desired

Walk-through or preliminary audit Walk-through or preliminary audit comprises one day or half-day visit to a plant and the output is a simple report based on observation and historical data provided during the visit. The findings will be a general comment based on rule-of-thumbs, energy best practices or the manufacturer's data.

Preliminary Energy Survey
Quick overview of energy use patterns ‡ Provides guidance for energy accounting system ‡ Provides personnel with perspectives of processes and equipment ‡ Identify energy ± intensive processes and equipment ‡ Identify energy inefficiency ,if any ‡ Set the stage for detailed energy survey

Steps in conducting Preliminary Energy Audit

1. Plan how to obtain useful data
± Plan how to win the involvement/ commitment of others Collect existing data e.g., a energy bills(volume/cost) Collect Production output/records plant layouts using checklists Find unit cost of energy (Rs./ kWh for all types) Find fixed and variable energy element Derive energy Index : energy cost/unit output, energy cost/floor area

2. Collect data 

3. Analyse data 

Steps in Conducting Preliminary Energy Audit

4. Formulate plan
Formulate Immediate energy-saving actions: Where? How ? How much? ± Areas to investigate further ± Resources required for more detailed study

5. Action and Monitoring 6. Next steps (e.g Need for detailed Audit)

Detail audit
Detail audit is carried out for the energy savings proposal recommended in walkthrough or preliminary audit. It will provide technical solution options and economic analysis for the factory management to decide project implementation or priority. A feasibility study will be required to determine the viability of each option.

Detailed Energy Survey

Detailed evaluation of energy use pattern

‡ By processes and equipment ‡ Measurement of energy use parameters ‡ Review of equipment operating characteristics ‡ Evaluation of efficiencies ‡ Identify DSM options and measures ‡ Recommendation for implementation

Detailed Energy Audit
‡ Evaluates all energy using system, equipment and include detailed energy savings and costs ‡ Carried out in 3 phases
± Pre-audit Phase ± Audit Phase ± Post-Audit

Ten Steps Methodology for Detailed Audit

Step No

PLAN OF ACTION Phase I ±Pre Audit Phase


Step 1 y Plan and organise y Resource planning, Establish/organize a Energy audit team y Walk through Audit y Informal Interview with y Organize Instruments & time frame Energy Manager, Production y Macro Data collection (suitable to type of industry.) / Plant Manager y Familiarization of process/plant activities y First hand observation & Assessment of current level operation and practices Step 2 y Conduct of brief meeting / y Building up cooperation awareness programme with y Issue questionnaire for each department all divisional heads and y Orientation, awareness creation persons concerned (2-3 hrs.)

tep 3

hase II ± udit hase y rimary data gathering, y Historic data analysis, aseline data rocess lo iagram, collection nergy Utility iagram y repare process lo charts ll service utilities system diagram y ( xample: ingle line po er distribution diagram, ater, compressed air steam distribution. esign, operating data and schedule o y operation y nnual nergy ill and energy consumption pattern ( e er manual, log sheet, name plate, intervie ) y onduct monitoring survey and y easurements : otor survey, Insulation, and Lighting survey ith portable instruments or collection o more and accurate data. on irm and compare operating data ith design data.

tep 4

tep 5


onduct o detailed trials y Trials/ xperiments: /experiments or selected - 24 hours po er monitoring ( , , energy guzzlers kWh etc.). - Load variations trends in pumps, an compressors etc. oiler/ iciency trials or (4 ± 8 hours) urnace iciency trials quipments er ormance experiments etc nalysis o energy use y nergy and aterial balance loss/ aste analysis energy



tep 7

y Identi ication and development o nergy onservation ( N N) opportunities

onsolidation N N y Identi ication measures Conceive, develop, and re ine ideas  evie the previous ideas suggested by unit personal  evie the previous ideas suggested by energy audit i any Use brainstorming and value analysis techniques vendors or ne /e icient Contact technology easibility, economic y Assess technical viability and prioritization o NCON options or implementation y elect the most promising projects y rioritise by lo , medium, long term measures ocumentation, anagement. eport resentation to the top

tep 8 y

ost bene it analysis



eporting resentation to the Top anagement


hase III ± ost Audit phase
y Implementation and ollo - Assist and Implement NCON recommendation measures and onitor the per ormance up plan, chedule or Action implementation  ollo -up and periodic revie

Inputs and Outputs of Energy audit

Areas covered under Electrical audit are 1. Electrical System : ‡ Electrical Distribution system (substation & feeders study) ‡ PF Improvement study ‡ Capacitor performance ‡ Transformer optimization ‡ Cable sizing & loss reduction ‡ Motor loading survey ‡ Lighting system ‡ Electrical heating & melting furnaces ‡ Electric ovens

2. Mechanical System : ‡ Fans & Blowers ‡ Exhaust & ventilation System ‡ Pumps and pumping System ‡ Compressed air System ‡ Air Conditioning & Refrigeration System ‡ Cooling Tower System

Areas covered under Electrical audit are ‡ Steam Generation Boilers ‡ Steam Audit and Conversation ‡ Steam Trap Survey ‡ Condensate Recovery System ‡ Insulation Survey ‡ Energy and Material Balance for Unit operation ‡ Heat Exchanger ‡ Waste Heat Recovery System

WATER AUDIT & CONSERVATION Industry has recognized 'Water Audit' as a important tool for water resource management Water Audit study is a qualitative and quantitative analysis of water consumption to identify means of reuse and recycling of water. This study includes segregation of effluent streams and schemes for effectively treating them to enable byproduct recovery. Water Audits encourage social responsibility by identifying wasteful use, enables estimation of the saving potential they not only promote water conservation but also deliver cost savings, but also companies to safeguard public health and property, improve external relations and reduce legal liability.

Benefits of energy audit

There is a lot of potential for energy savings from energy audits.. Technical solutions proposed in the energy audits show massive potential for energy savings in every sub-sector with an average of almost ten percent of the energy usage. However, this can only materialize through replication at other factories within the respective sub-sector.

Benefits of an industrial energy audit include:

‡Energy savings ‡Avoiding power factor penalties and environmental compliance costs ‡Quality improvements ‡Productivity improvements ‡Reduced maintenance ‡Fewer breakdowns ‡Better safety and protection ‡A process for repeatable improvements

Process VS. Equipment
Equipment efficiency improvement : Process efficiency improvement Max. 5% : 15% to 30%

Conclusion Focus on Processes

Energy intensive processes and equipment
Examples of processes
‡ Electrical furnace ‡ Rolling mills ‡ Gas furnace ‡ Steam generation ‡ Feed water system ‡ Condensate return system ‡ Steam distribution system ‡ Electrlyzer

Examples of equipment
‡ Electrical motor ‡ Pump ‡ Fan ‡ Heater (gas,..,electric) ‡ Dryer (steam/electric) ‡ Motor / generator ‡ Compressor ‡ Light bulb

Conducting Energy Audits
Step 1 : Data Collection Step 2 :Pre. Audit Report 4 :Detailed Audit Report Step
‡ Lay out ± Process FD‡ Operating Conditions Systems ‡ Boiler & Steam System ‡HVAC ‡Elec. Supply System ‡Water systems ‡Compressed Air System ‡Lighting ‡Motors and Drives ‡Processing Lines Energy ‡Building Envelope Data ‡Electricity Bills ‡Fuel Bills ‡Water Bills

Energy Accounting
‡ Normalization ‡Time Plotting of data

‡ Detailed Inventory ‡Specific Energy Consumption ‡Conceptual Design for ECO ‡Economic Evaluation and Analysis

Identifying ECO

Step 3 :Facility Inspection
‡ Detailed Measurements ‡Categorizing Consumption ‡Systems Detailed Specs. And operating conditions

Goals of the energy audit are to :
‡ ‡ ‡
Clearly identify types and costs of energy use Understand how that energy is being used and possibly wasted Identify and analyze more cost-effective ways of using energy - Improved operational techniques - New equipment Perform an economic analysis on those alternatives and determine which are costeffective for your business or industry


AEE/ Certified Energy Manager CEM ®

Analysis of Bills
The audit must begin with a detailed analysis of the energy bills for the previous twelve months. This is important because :

‡ ‡ ‡

The bills show the proportionate use of each different energy source when compared to the total energy bill. An examination of where energy is used can point out previously unknown energy wastes, and The total amount spent on energy puts an obvious upper limit on the amount that can be saved.

AEE/ Certified Energy Manager CEM ®


AEE/ Certified Energy Manager CEM ®


AEE/ Certified Energy Manager CEM ®


Av. Load Duration Curve
1200 1000 800

600 400 200 0
744 1464 2208 2928 3672 4416 5136 5880 6552 7296 8016 Hrs / Year

A complete analysis of the energy bills for a facility requires a detailed knowledge of the rate structures in effect for the facility. To accurately determine the costs of operating individual pieces of equipment, break down energy bills into their components (e.g. demand charge and energy charges for the electric

This breakdown also allows more accurate savings calculations for Energy Management Opportunities (EMOs) such as high-efficiency equipment, rescheduling B 6 AEE/ Certified Energy Manager CEM of some on-peak electrical- uses, etc.

Steps in the On-site Energy Audit
1. Identify layout and operating schedule for facility.
Make a plan or sketch of the building(s) which shows building sizes, window areas, and wall and roof composition and insulation

2. Compile an equipment inventory.
List all energy consuming equipment, with hours of use each year and energy ratings or efficiencies
AEE/ Certified Energy Manager CEM ® B-7

3. Determine the pattern of building use to show
annual needs for heating, cooling and lighting

4. Conduct a room-by-room lighting inventory ± ± ± ±
Light fixtures Lamp types, size and numbers Levels of illumination Uses of task lighting

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Energy Balance for Facility Gas Electricity Natural
2,597,700 kWh 329,863 GJ Lighting 130,560 kWh Boiler 329,863 GJ


Motors 1,516,619 kWh

Electric Heaters 100,100 kWh HVAC 34,286 kWh Miscellaneous 260,000 kWh

Compressors 116,379 kWh Total: 2,432,501 kWh/yr
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Chillers 274,560 kWh
B -9

Demand Balance for a Facility
Electricity 345-378 kW

Lighting 18 kW

Electric Heaters 13 kW

Motors 197.1 kW

Compressors 14.9 kW

HVAC 17.1 kW Chillers 34.3 kW

Miscellaneous 35 kW

Total: 329.4 kW
AEE/ Certified Energy Manager CEM ® B -10

Geographic Location / Degree Days / Weather Data
‡ ‡
Geographic location of facility and weather data for that location are important. Obtain average degree days for heating and cooling for that location for the past twelve months from: ± Closest weather station, or ± Local utility Degree-day data is very useful in analyzing energy needed to heat or cool facility.
B - 11


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Heating degree days (HDD) and cooling degree days (CDD) are separate values to a particular geographic location. The degree day concept assumes:

‡ ‡

The average building has a desired indoor temperature of 21.1°C, 2.8°C of this is supplied by internal heat sources such as lights, appliances, equipment, and people.

@ The base for computing degree-days is 18.33°C.
B - 12

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Assume a period of three days when the outside temperature averaged 10°C each day The number of HDD for this three day period would be:
HDD = (18.33°± 10°) * 3 days = 25 degree days.

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B - 13

Facility Layout
Obtain the facility layout or plan; review it to determine:

± ± ±

Facility size Floor plan Construction features (wall and roof material, insulation levels, door and window sizes and construction)

AEE/ Certified Energy Manager CEM ®

B - 14

Operating Hours
Obtain operating hours for facility

± ± ±

How many shifts does the facility run? Is there only a single shift? Two? Three?

Knowing the operating hours in advance gives some indication as to whether any loads could be shifted to offpeak times.

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B - 15

Equipment List
‡ ‡
Get equipment list for facility and review it before conducting audit. Identify all large pieces of energy-consuming equipment such as:


Heaters, air conditioners, water heaters, and specific process-related equipment


Equipment list and data on operational uses of equipment provide understanding of major energy-consuming tasks or equipment at facility.

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B - 16

Nine Major Systems To Consider
1. 2. 3. 4. 5. 6. 7. 8. 9.
Building Envelope HVAC System Electrical Supply System Lighting Boiler and Steam System Hot Water System Compressed Air System Motors and drives Special Purpose Process Equipment

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B - 17

As you examine each system, you should ask:

1. What function(s) does this system serve? 2. How does this system serve its function(s)? 3. What is the energy consumption of this system? 4. What are the indications that this system is
probably working ?

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B - 18

5. If this system is not working, how can it be
restored to good working condition?

6. How can the energy cost of this system be

7. How should this system be maintained? 8. Who has direct responsibility for maintaining and
improving the operation and energy efficiency of this system?

AEE/ Certified Energy Manager CEM ®

B - 19

Preliminary Identification of Energy Management Opportunities (EMOs)
‡ ‡
During the on-site audit, take notes on potential EMOs that are evident. In general, devote the greatest effort to analyzing and implementing the EMOs which show the greatest savings, and the least effort to those with the smallest savings potential. Identifying EMOs requires a good knowledge of energy efficiency technologies available to do the same job with less energy and cost.
B - 20


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The Energy Audit Report
The energy audit report

± Explains the final results of the energy

± Provides energy cost saving

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B - 21

Energy Audit Report Format
Executive Summary Brief summary of recommendations and cost savings Introduction Purpose of the energy audit Need for a continuing energy cost control program Facility Description Size, construction, facility layout, and hours of Operation, equipment list, with specifications
B - 22



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Energy Bill Analysis Utility rate structures Tables/graphs of energy consumptions and costs Discussion of energy costs and energy bills Energy Management Opportunities (EMO¶s) Listing of potential EMOs Cost and savings analysis Economic evaluation Energy Action Plan Schedule for implementing EMOs Designation of an energy monitor Conclusion Additional comments not otherwise covered
B - 23


‡ ‡

AEE/ Certified Energy Manager CEM ®

Emission Factors

Emissions by Fuel Type 1 ton Mazout 1 ton Solar 1 m3 of Natural Gas 1 kWh of Electricity (assumes emissions are from a central utilityowned power stration) 1 ton of LPG

Ton CO2 3.229600 3.229600 0.001950

Ton SO2 0.080000 0.040000 0.000000

Ton NOx 0.004000 0.004000 0.000000

0.000775 3.027000

0.000019 0.000000

0.000002 0.000000

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B - 24

Drawing process flow diagram -Identification of waste streams and obvious energy wastage

Re orting ormat for nergy onservation Recommendations : itle of Recommendation B: Descri tion of xisting ystem and its o eration : : ombine DG set cooling tower with main cooling tower ain cooling to er is operating ith 30% o its capacity. The rated cooling ater lo is 5000 m3/hr.T o cooling ater pumps are in operation continuously ith 50% o its rated capacity. A separate cooling to er is also operating or G set operation continuously. The G et cooling ater lo is only 240 m3/h. y adding this lo into the main cooling to er, ill eliminate the need or a separate cooling to er operation or G set, besides improving the %loading o main cooling to er. It is suggested to stop the G set cooling to er operation.

: Descri tion of ro osed system and its o eration


D: E ergy Savi g Calculatio s Capacity of main cooling tower Temp across cooling tower (design) Present capacity Temperature across cooling tower(operating) loading of main cooling tower Capacity of D Set cooling tower Temp across the tower Heat oad (240x1000 x 1x 5) Po er ra y t e DG set cooli g to er o of pumps and its rating o of fans and its rating Power consumption@ 80 load Additional power required for main cooling tower for additional water flow of 240m3/h (66.67 l/s) with 6 kg/cm2 et Energy savings E: Cost e efits Annual Energy Saving Potential Annual Cost Savings Investment (Only cost of piping) Simple Pay back Period

= = = = = = = =

5000 m / hr 8 oC 3000 m3/hr 4 oC (3000 x 4)/(5000 x 8) = 30 240 m3/hr 5oC 1200,000 K.Cal/hr


= = = =

2 nos x 7.5 kW 2 os x 22 kW (22 x2 +7.5 x2) x.80 = 47 kW (66.67 x 6) / (102 x 0.55) = 7 kW

= = = = =

47 ± 7 = 40 kW 40kWx 8400hr = 3,36,000 nits/Year 3,36,000 xRs.4.00 = Rs.13.4 akh per year Rs 1.5 akhs Less t a 2 mo t s

Energy Audit Reporting Format

Energy Audit Reporting Format

Worksheet for energy audit and reporting
Ta le 3.2 Summary of e ergy savi g recomme atio s

S. o. Energy Saving Recommendations

Annual Energy (Fuel & Electricity) Savings (kWh/kl/MT

Annu al Savin gs Rs. a khs

Capital Investment (Rs. akhs)

Simple Payback period

1 2 3 4 Total



Types and priority of energy saving measures y e of nergy Annual Annual aving Options lectricity avings uel avings
W L s Lakhs)



No nvestment mmediate)
Operational mprovement Housekeeping

Low nvestment hort to edium erm)
C Controls uipment odification rocess change High nvestment Long erm) nergy efficient evices roduct modification echnology Change

Understanding energy costs
Typical summary of energy bill by a company
Tab e .4 Type of energy Original units lectricity , , kWh uel oil ,kL Coal tons Total

Unit Cost s. . kWh s. , kL s. , ton

onthly ill s. , , , , , , , ,

Conversion to common unit of energy
lectricity ( kWh) Heavy fuel oil (calorific value, CV) Coal (calorific value, CV) = 8 kcal/kWh ( . 3 J) = . kcal/litre ( . J/litre) = kcal/kg ( 8 J/ton)

Benchmarking for energy performance
Internal Benchmarking 
Historical and trend analysis

External Benchmarking 
Across similar industries Scale of operation, vintage of technology, raw material specification and quality and product specification and quality

Bench Marking Energy Performance
‡ Quantification of fixed and variable energy consumption trends vis-à-vis production levels ‡ Comparison of the industry energy performance w.r.t. 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

Benchmarking parameters
Gross production related e.g. kWh/MT clinker or cement produced (cement plant) e.g. kWh/MT, kCal/kg, paper produced (Paper plant) e.g. kCal/kWh Power produced (Heat rate of a power plant) e.g. Million kilocals/MT Urea or Ammonia (Fertilizer plant) Equipment / utility related e.g. kWh/ton of refrigeration (on Air conditioning plant) e.g. % thermal efficiency of a boiler plant e.g. kWh/NM3 of compressed air generated e.g. kWh /litre in a diesel power generation plant.

Maximizing system efficiency
‡ Eliminate steam leakages by trap improvements ‡ Maximise condensate recovery ‡ Adopt combustion controls for maximizing combustion efficiency ‡ Replace pumps, fans, air compressors, refrigeration compressors, boilers, furnaces, heaters and other energy conservation equipment, wherever significant energy efficiency margins exist

Optimising Input Energy Requirement
‡ Shuffling of compressors to match needs. ‡ Periodic review of insulation thickness ‡ Identify potential for heat exchanger networking and process integration. ‡ Optimisation of transformer operation with respect to load

Fuel and Energy Substitution
Fuel substitution ‡ Natural gas is increasingly the fuel of choice as fuel and feedstock in the fertilizer, petrochemicals, power and sponge iron industries. ‡ Replacement of coal by coconut shells, rice husk,etc ‡ Replacement of LDO by LSHS Energy substitution ‡ Replacement of electric heaters by steam heaters ‡ Replacement of steam based hot water by solar systems

Electrical Meas ring Instr ments: These are instruments for measuring major electrical parameters such as kVA, kW, , Hertz, kvar, Amps and Volts. In addition some of these instruments also measure harmonics. These instruments are applied on-line i.e on running motors without any need to stop the motor. Instant measurements can be taken with hand-held meters, while more advanced ones facilitates cumulative readings with print outs at specified intervals.

Comb stion analyzer: This instrument has in-built chemical cells which measure various gases such as CO2, CO, NOX, OX etc

Fuel Efficiency Monitor: This measures Oxygen and temperature of the flue gas. Calorific values of common fuels are fed into the microprocessor which calculates the combustion efficiency.

Fyrite: A hand bellow pump draws the flue gas sample into the solution inside the fyrite. A chemical reaction changes the liquid volume revealing the amount of gas. ercentage Oxygen or CO2 can be read from the scale.

Contact thermometer:



Energy Audit Instruments





Contact thermometer: These are thermocouples which measures for example flue gas, hot air, hot water temperatures by insertion of probe into the stream. or surface temperature a leaf type probe is used with the same instrument.

Infrared yrometer: This is a non-contact type measurement which when directed at a heat source directly gives the temperature read out. Can be useful for measuring hot jobs in furnaces, surface temperatures etc. itot Tube and manometer: Air velocity in ducts can be measured using a pitot tube and inclined manometer for further calculation of flows.

Energy Audit Instruments

ltrasonic flow meter: This a non contact flow measuring device using oppler effect principle. There is a transmitter and receiver which are positioned on opposite sides of the pipe. The meter directly gives the flow. Water and other fluid flows can be easily measured with this meter.


easureme ts:

In any audit exercise speed measurements are critical as thay may change with frequency, belt slip and loading. A simple tachometer is a contact type instrument which can be used where direct access is possible. More sophisticated and safer ones are non contact instruments such as stroboscopes.

Energy Audit Tachometer Instruments

Stroboscope Leak Detectors: ltrasonic instruments are available which can be used to detect leaks of compressed air and other gases which are normally not possible with human abilities.

Lu meters: Illumination levels are measured with a lux meter. It consists of a photo cell which senses the light output, converts to electrical impulses which are calibrated as lux.

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