9.

ENERGY AUDIT
9.1 Energy Audit Concepts
9.2 Basic elements and measurements
9.3 Preparation and presentation of energy audit reports
9.4 Case study and potential energy savings

(6 hours)

9.1(a)What is an Energy Audit (EA)?

(i) It is pool of activities with systematic procedure, focused on analysis of current energy need and
consumption considering valid technical standards,
(ii) It is an analysis of problems (weaknesses and deficiencies) related to production, consumption,
distribution, transmission, control and conservation of energy sources,
(iii) EA identifies and in detail quantifies effective possibilities of energy savings tailored to the object
being analyzed,
(iv) EA is a field-work, economy tool having dynamic character, often basis for grant financing of
projects.
Description of definition:
An energy audit is an inspection, survey and analysis of energy flows forenergy 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.
When the object of study is an occupied building then reducing energy consumption while maintaining
or improving human comfort, health and safety are of primary concern. Beyond simply identifying the sources
of energy use, an energy audit seeks to prioritize the energy uses according to the greatest to least cost effective
opportunities for energy savings.
9.1(b) What is the Aim of EA?

to minimize overall costs (production, consumption, etc.) for energy

to minimize operational costs

to minimize costs for maintenance, repairs and reconstruction

toincrease quality of environment that contributes to increase work, productivity, through increased
health, etc.

According to definition and objectives, the procedure of EA as well as content of the report of EA is
determined by Government Regulation code. Similarly the term energy efficiency is more important from the
subject point of view.
9.1(c)Why energy efficiency (EE)?
(a) EE helps to obtain cheapest energy, which is not necessary to produce.
(b) EE is in the center of economy and political attention of the human world.
(c) EE contributes to fulfillment of main three targets of EU energy policy - sustainability, security and
competitiveness.
(d) EE decreases dependence of economy on non-stable prices of oil and gas.
(e) EE is part of healthy energy and economy policy of state.
(f) It supports local economy and its growth based on innovations.
(g) It increase lifetime of technology, equipment andobjects.

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(h) It decreases operational costs, environmental impact and global warming.

(i) It saves money and time.
9.2 Basic Elements and Measurements: Main Areas of EA

(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)

Subjects of energy consumption analysis are energy resources consumed in the industrial area, i.e.:
(a)
Electricity
Natural gas
Steam
Coal
Wood, wood chips/pellets
Fuels (petrol, oil, propane-butane, biodiesel)
Thermal-technical protection of buildings
Heating systems
Hot water preparation
Ventilation systems and air-conditioning (buildings and technology)
(k) Electric appliances (administrative and technological including electrical connection,
transformation, distribution network, electrical switchboards, electrical compensation)
(l) Gas or other energy resources consuming appliances (furnaces, cleaning devices,..)
(m) Indoor/outdoor lighting,
(n) Measurement and regulation.

9.2(b) The energy audit process

1.
2.
3.
4.
5.
6.
7.
8.

Data gathering
Utility analysis
Inventory and review of equipment performance
Measurements and monitoring
Identify potential energy conversion measures
Analysis of saving potential
Financial analysis
Presentation and reporting

9.2(c) What offers EA to the customer?

(a) It identifies highest achievable potential of energy and costs savings and its effort.
(b) It points out on often visible as well as hidden technical/hygienic/safety deficiencies of buildings and
production technology equipment,
(c) It recommends technical parameters of measures.
(d) It calculatesinvestment needs of measures, their asset - economical, technical, environmental, etc.
(e) It proposes procedure for realization of measures.
(f) It is very effective technical, economical and management tool for investment decision processes
going out of economical modeling.
(g) It is solid basement for effective control of energy consumption and herewith alsooperational costs.
9.3(a)ENERGY AUDIT PRACTICE
1.
2.
3.
4.
5.

Identification of subject of EA
Data collection, analysis and evaluation of current status
Proposal of EE and measures
Economy and environmental evaluation of measures
Proposal of at least two variants for implementation of measures and recommendation of optimal
variant

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6. Drafting of written report from EA

9.3(b) Energy cost can be lowered by following methods:
1.

ELIMINATING UNNECESSARY ENERGY USE

2.

IMPROVING THE EFFICIENCY OF NEEDED ENERGY USE

3.

BUYING ENERGY AT LOWER NET PRICES

4.

ADJUSTING OPERATIONS TO ALLOW PURCHASING ENERGY AT LOWER PRICES

Description of statements:
The need to reduce energy costs is a crucial business practice for successful organizations, and energy
audits have begun to play a more significant role in managing energy expenses. Energy audits can encompass a
variety of surveying techniques but most commonly consist of an analysis of energy usage within a building or
facility and its contained equipment. Energy audits can be ASHRAE Level I, II, or III (ASHRAE - American
Society of Heating, Refrigerating, and Air-Conditioning Engineers) for conditioned space, or comprehensive
or tactical energy surveys for industrial facilities. Audits include comprehensive lists of energy efficiency
measures derived from building and facility performance. Energy audits also include financial analysis for each
identified measure. Energy audits can use information from building management systems (BMS) with the goal
of reducing energy usage without negatively impacting the companys everyday practices. Industrial energy
audits often focus on key aspects of the overall system that tend to use the most energy. Common examples of
audited equipment include HVAC (heating, ventilation, and air conditioning), lighting, and plug load.
9.4 Industrial energy audits
Increasingly in the last several decades, industrial energy audits have exploded as the demand to lower
increasingly expensive energy costs and move towards a sustainable future have made energy audits greatly
important. Their importance is magnified since energy spending is a major expense to industrial companies
(energy spending accounts for about 10% of the average manufacturer's expenses). This growing trend should
only continue as energy costs continue to rise.
While the overall concept is similar to a home or residential energy audit, industrial energy audits require a
different skillset. Weatherproofing and insulating a house are the main focus of residential energy audits. For
industrial applications, it is the HVAC, lighting, and production equipment that use the most energy, and hence
are the primary focus of energy audits.
Common types/levels of energy audits are distinguished below, although the actual tasks performed and level of
effort may vary with the consultant providing services under these broad headings. The only way to ensure that
a proposed audit will meet your specific needs is to spell out those requirements in a detailed scope of work.
Taking the time to prepare a formal solicitation will also assure the building owner of receiving competitive and
comparable proposals.
Generally, four levels of energy analysis areoutlined by ASHRAE:
1.

Level 0 Benchmarking: This first analysis consists in a preliminary Whole Building Energy Use
(WBEU) analysis based on the analysis of the historic utility use and costs and the comparison of the
performances of the buildings to those of similar buildings. This benchmarking of the studied installation
allows determining if further analysis is required;

2.

Level I Walk-through audit: Preliminary analysis made to assess building energy efficiency to
identify not only simple and low-cost improvements but also a list of energy conservation measures
(ECMs, or energy conservation opportunities, ECOs) to orient the future detailed audit. This inspection is
based on visual verifications, study of installed equipment and operating data and detailed analysis of
recorded energy consumption collected during the benchmarking phase;

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3.

Level II Detailed/General energy audit: Based on the results of the pre-audit, this type of energy
audit consists in energy use survey in order to provide a comprehensive analysis of the studied installation,
a more detailed analysis of the facility, a breakdown of the energy use and a first quantitative evaluation of
the ECOs/ECMs selected to correct the defects or improve the existing installation. This level of analysis
can involve advanced on-site measurements and sophisticated computer based simulation tools to evaluate
precisely the selected energy retrofits;

4.

Level III Investment-Grade audit: Detailed Analysis of Capital-Intensive Modifications focusing

on potential costly ECOs requiring rigorous engineering study.

Description:
1.

Benchmarking

The impossibility of describing all possible situations that might be encountered during an audit means that it is
necessary to find a way of describing what constitutes good, average and bad energy performance across a range
of situations. The aim of benchmarking is to answer this question. Benchmarking mainly consists in comparing
the measured consumption with reference consumption of other similar buildings or generated by simulation
tools to identify excessive or unacceptable running costs. As mentioned before, benchmarking is also necessary
to identify buildings presenting interesting energy saving potential. An important issue in benchmarking is the
use of performance indexes to characterize the building.
2.

Walk-through or preliminary audit

The preliminary audit (alternatively called a simple audit, screening audit or walk-through audit) is the simplest
and quickest type of audit. It involves minimal interviews with site-operating personnel, a brief review of
facility utility bills and other operating data, and a walk-through of the facility to become familiar with the
building operation and to identify any glaring areas of energy waste or inefficiency.
Typically, only major problem areas will be covered during this type of audit. Corrective measures are briefly
described, and quick estimates of implementation cost, potential operating cost savings, and simple payback
periods are provided. A list of energy conservation measures(ECMs, or energy conservation opportunities,
ECOs) requiring further consideration is also provided. This level of detail, while not sufficient for reaching a
final decision on implementing proposed measure, is adequate to prioritize energy-efficiency projects and to
determine the need for a more detailed audit.
3.

General audit

The general audit (alternatively called a mini-audit, site energy audit or detailed energy audit or complete site
energy audit) expands on the preliminary audit described above by collecting more detailed information about
facility operation and by performing a more detailed evaluation of energy conservation measures. Utility bills
are collected for a 12- to 36-month period to allow the auditor to evaluate the facility's energy demand rate
structures and energy usage profiles. If interval meter data is available, the detailed energy profiles that such
data makes possible will typically be analyzed for signs of energy waste.Additional metering of specific energyconsuming systems is often performed to supplement utility data. In-depth interviews with facility operating
personnel are conducted to provide a better understanding of major energy consuming systems and to gain
insight into short and longer term energy consumption patterns. This type of audit will be able to identify all
energy-conservation measures appropriate for the facility, given its operating parameters. A detailed financial
analysis is performed for each measure based on detailed implementation cost estimates; site-specific operating
cost savings, and the customer's investment criteria. Sufficient detail is provided to justify project
implementation. The evolution of cloud-based energy auditing software platforms is enabling the
managers of commercial buildings to collaborate with general and specialty trades contractors in performing
general and energy system-specific audits.The benefit of software-enabled collaboration is the ability to identify

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the full range of energy efficiency options that may be applicable to the specific building under study with "live
time" cost and benefit estimates supplied by local contractors.
4.

Investment-grade audit

In most corporate settings, upgrades to a facility's energy infrastructure must compete for capital funding with
non-energy-related investments. Both energy and non-energy investments are rated on a single set of financial
criteria that generally stress the expected return on investment (ROI). The projected operating savings from the
implementation of energy projects must be developed such that they provide a high level of confidence. In fact,
investors often demand guaranteed savings. The investment-grade audit expands on the detailed audit described
above and relies on a complete engineering study in order to detail technical and economical issues necessary to
justify the investment related to the transformations.
9.5 Need of Energy Efficiency in Nepal
a)

Huge potential of energy conservation in residential cooking, industrial thermal application and commercial
enterprises is necessary.
b) Poor management of energy utilization in all sectors is available.
c) Huge energy deficit specially the electricity all around the year
d) Energy efficiency for saving foreign currency towards better economy and environment.
e) Energy efficiency for energy conservation and energy security
Some Energy Efficiency Activities as per NES
(a) Replace traditional biomass technology with the new biomass technology.
Traditional cook stove to Improved Cook Stove

Loose biomass to biomass densification

Introduce biomass gasification technology

(b) Replace fossil fuel technologies by modern technologies.
Introduce electric cars

Introduce hybrid cars/vehicles

Introduce electric train for mass transportation

(c) Substitute fossil fuels
Mix ethanol in petrol and diesel
Promote biodiesel in transportation sector
(d) Implement energy audit
Nepal Energy Efficiency Program (NEEP):as per National Energy Strategy of Nepal

(a) Components under NEEP are:

Energy policy and awareness
Energy conservation in household sector
Energy conservation in industry sector
(b) Major activities under NEEP

Develop Biomass Energy Strategy as per NES

Establish Energy Efficiency Centre
Support energy policy development
Support awareness raising
Study on labeling and standardization of major household electric appliances

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