ENERGY AUDIT STUDY

Gujarat Energy Development Agency Subsidy Scheme

th
4 floor,Block no.11-12, Udyog Bhavan, (2009-10)
Sector-11,Ghandhinagar-382 017
Tele:(079)23247086,23247089,23247090
Fax:(079)23247097, email:geda@info.com
Website:www.geda.org.in

Energy Conservation in Industries – Potential & Need

Industrial profits usually leakout through inefficient energy utilization. Increasing industrial competition and
ever-increasing costs of available forms of energy, especially fossil fuels, have focussed attention on the
need to cut down on wasteful energy consumption - to enhance & to sustain industrial profits. Since an
Energy Audit helps in identifying the areas where there is wastage and where scope for conservation
exists, it has become an important tool in crucial management decisions.

Energy Audit is a positive approach to energy cost reduction, preventive maintenance and quality control
programmes. It helps keep alive variations which occur in energy costs, availability and reliability of energy
supply, decide the appropriate energy mix, select the right conservation technology, retrofits for energy
conservation equipment, etc.

Energy Audit translates conservation ideas into actual money saved. It blends technically feasible solutions
with economic and other organisational considerations within a specified time frame. It is more beneficial
than a piecemeal introduction of short-term measures, as it is a comprehensive strategy that also
envisages gearing up of organisational structure and other infrastructure requirements.

Estimated energy conservation potential in Indian Industries is given in the Table given below. Marginal
investments are required for improving energy efficiency which is justified by the short payback periods..

Table: Energy Conservation Potential in Indian Industries

The industrial sector is a major energy-consuming sector accounting for about 50 % of the commercial
energy available in the country. The total energy consumption, including non-energy uses about 105 mtoe.
Of the commercial sources of energy, coal & lignite account for 56%, oil & natural gas – 40%, hydroelectric
power 3% and nuclear power 1%.
% SHARE OF ENERGY % CONSERVATION
INDUSTRIES
IN PRODUCTION COST POTENTIAL
Refineries 1 8-10
Sugar 3.4 25-30
Ferrous Foundry 10.5 15-20
Textile 10.9 20-25
Petrochemical 12.7 10-15
Chloro-alkali 15 10-15
Iron & Steel 15.8 8-10
Fertilizers & Pesticides 18.3 10-15
Pulp & Paper 22.8 20-25
Glass 32.5 15-20
Ceramics 33.7 15-20
Aluminum 34.2 8-10
Cement 34.9 10-15
Ferro-alloys 36.5 8-10
Energy Audit
An Energy Audit Study is to process for understanding and analysing the energy utilisation in a business
(factory, building, machine, etc.) and to identify areas of wastage and to minimise it energy use by adopting
energy efficient practices & technologies. Energy Audit helps to budget energy use, plan and implement
feasible energy conservation measures that will enhance their energy efficiency, curtail energy wastage
and substantially reduce energy costs.

The Energy Audit serves to identify all the energy streams in a facility, qualify energy usage with its discrete
functions, in an attempt to balance the total energy input with its use. Energy Audit is thus the key to a
systematic approach for decision-making in the area of Energy Management. As a result, the Energy Audit
Study becomes an effective tool in defining and pursuing comprehensive Energy Management
Programme (EMP).

Energy Audit Study includes

• Auditing of Energy Consumption (including any heat and power generated)

• General examination of work place (including physical condition of organisation, its processes,
occupancy time, and variations in ambient temparature and energy consumption pattern etc.)
• Measurement of all energy flows.(including testing of boiler or steam raising, heating equipment,
refrigeration, etc.)
• Analysis and appraisal of energy usage.(e.g. specific fuel consumption, energy-product
interrelationship).
• Energy management procedures and methodology.
• Identification of energy improvement opportunities and recommendations for energy efficiency
measures and quantification of implementation costs and paybacks.
• Identification of possible usages of co-generation, renewable sources of energy and recommendations
for implementation, wherever possible, with cost benefit analysis.

Objectives of Energy Audit

The objective of providing EAS subsidy is to promote the idea of Energy Conservation in the industrial
sector of Gujarat. The work eligible for Energy Audit Study should be directed towards:
• Identification of areas of energy wastage and estimation of energy saving potential
• Suggesting cost-effective measures to improve the efficiency of energy use,
• Estimation of implementation costs and payback periods for each recommended action and
• Documenting results & vital information generated through these activities.

GEDA’s Energy Audit Subsidy Scheme

The Gujarat Energy Development Agency (GEDA), is Nodal Agency established by the Government of
Gujarat for promting use of reneable energy sources and energy conservation in Gujarat. GEDA is also the
State Designated Agency for implementing the Energy Conservation Act-2001 enacted by the Govt. of
India. Promotion of Energy Efficiency in the industrial and buildings sector form one of the major mandates
of the EC Act as it has tremendous potential for improvement.

There is a potential for conserving 30-40% energy in some key industrial clusters. Absence of systematic
energy monitoring mechanism is a major factor that is responsible for a large amount of unproductive
energy utilisation in industries. GEDA’s Energy Audit Scheme provides financial assistance as well as
technical expertise through trained & experiened energy expert, to industries and building owners for
analysing their energy usage and to increase their profits through achievemnet of higher energy efficiency.
Energy audits of industrial units, commercial complexes, hotels and hospitals are covered under this
subsidy scheme.

The subsidy will cover upto 50 % cost of the Energy Audit Study (EAS), upto a maximum of Rs.20,
000/-. Industries with a electrical CD of less than 200 kVA and commercial complexes with a electrical CD
less than 75 kW would only be eligible for subsidy under this Scheme.
During the year 2009-10 subsidy shall be provided to 250 industries and commercial buildings –
qualifying the eligibility norms of the Scheme, on first-come-first-served basis.

GEDA Authorized Energy Audit Consultants

GEDA has authorized Energy Audit Consultants for providing consultancy services to the industries under
the EAS Subsidy Scheme. Energy audits conducted by these authorized Energy Audit Consultants would
only be eligible for the subsidy. List of GEDA authorised Energy Audit Consultants can be downloaded from
GEDA’s website – www.geda.org.in. or can be obtained from GEDA’s Office in Gandhinagar.

Energy Conservation - The Savings

It has been established through over 2500 industrial energy audit conducted in the State over past two
decade that there is a potential for saving 5 to 50% energy in different types of industries. Types of
industries audited include chemical, pharmaceutical, dyestuff, textile & textile processing, metal processing,
bakeries, paper & pulp, engineering, electrical, agricultural & food processing, hotels, commercial
complexes, etc. By following good house-keeping and proper operational practices alone can reduce
energy consumption by 5 - 10 %. About 10 - 15 percent energy can be saved by use of high efficiency
equipments and 30-50% energy can be saved by replacing obsolete manufacturing machinery with
modernising plants. Investments on modernisation projects are paid back within period of 2 to 3 years
through energy saving achieved and considering present bank inflation rate this kind of return is considered
to be good.

Procedures for Applying For Subsidy

1. An industry willing to avail subsidy is required to apply in the format in Form I. Services of GEDA
authorized Energy Audit Consultant engaged may be taken for applying procedures.
2. Application should be submitted to GEDA office alongwith
• Proposal of the Energy Audit Consultant engaged by the industry - financial offer & scope of study.
• Latest Annual Report of the Industry applying for subsidy.
3. Subsidy sanction issued by GEDA would indicate subsidy amount; elaborate scope of study; duration of
study (with last date for report submission) and Terms & conditions of sanction.

Procedures for Claiming Subsidy

1. Submission of one copy of draft Energy Audit Report, alongwith industry’s comment, to GEDA before
the specified last date.
2. Formal presentation of the report by the Consultant, in presence of GEDA representative and the
concerned executives from the industry. The presentation to be arranged in the premises of the
Industry, with prior intimation, on a mutually convenient date.
3. Acceptance of the EA Report, with modifications, if any, after the formal presentation.
4. Submission of 2 copies Final Report, spirally or comb bound, alongwith the Declarartion (as per
Form II) duly signed/sealed, proof of payment made to the Energy Audit Consultant for the EA study
and implementation energy conservation measures suggested in the report with time schedule,
estaimates of savings and investments required.

Industry benefits only if EC measures suggested by the Consultant in the Energy Audit Report
are implemented, closely monitor and maintained.

Terms and Conditions of EAS Subsidy Sanction

1. The scope of the EA Study would be as specified by GEDA in its sanction.

2. The work eligible for the EAS subsidy would include assessment of energy use in the industry,
outline of cost-effective measures, scope of energy saving, estimates of investments for
implementation of corrective measures suggested, payback periods and reporting of results of
these activities.
Other works, in particular tariff comparison and analysis, preparation of tender specifications and
tender evaluation, detailed design work, work connected with implementation of measures and long-
term consultancy work are not eligible for subsidy under the scheme.
3. Any industry within the Gujarat will be eligible for availing subsidy under this scheme 'once' provided
the industry has not availed subsidy under any other government scheme.
4. Energy audits conducted by GEDA authorized Energy Audit Consultants will only be valid for availing
subsidy under this scheme.
5. The energy auidt must be conducted as per the scope defined in GEDA's sanction letter. Any deviation
in the specified scope of study will result in cancellation of the subsidy.
6. The industry must forward the draft report to GEDA with its comments. A formal presentation of the
report by the Energy Audit Consultant, in the premises of the industry should be arranged in the
presence of GEDA official(s) and concerned executives from within the industry. Only after the
presentation and discussion the report will be accepted.
7. The claim for subsidy is subject to the sanction issued by GEDA. Any claim without a prior sanction of
GEDA would not be entertained. All payments made by the industry to the Energy Audit Consultant
should be done so by cheque or demand draft only.
8. It is mendatory for the industry to implement EC measures so as to achive atleast 20% of the financial
saving projected in the Final Report.
9. GEDA shall follow up on the post-audit implementation by the industry, with either a written
communication or a personal visit by its representative to the industry. The industry would be obliged to
respond positively to such visits and/or correspondances.
10. GEDA reserves the right to reject an application for EAS subsidy without giving reasons and to change
the terms and conditions of the scheme and to terminate the scheme at any time.
11. The Energy Audit Report would be a confidential document. However, GEDA reserves the right to use
and publish data and information generated during the study, for dessemination to other similar
industries. The industry may have the option of not indicating its name on the Report. In such cases
GEDA's sanction number & date should be mentioned in the Report.
12. If the study is not completed within the specified time limit, GEDA may decide to cancel the subsidy.
However, extension, if required, may be requested, before the due date of reporting, stating reasons for
the extension. It would be at GEDA's descretion to grant such extension.
13. Terms Of Payment Of Energy Audit Subsidy
GEDA shall release subsidy amount directly to the industry against submission of two copies of the
Final Report. The industry shall submit the subsidy claim letter alongwith `Declaration' (Form II) and
proof of payment released to the Energy Audit Consultant. The subsidy would be disbursed as follows:

• 50% against submission of Final Report

• 50 % against submission of the post-audit Feedback Report, duly certified jointly by the industry
and the Energy Audit Consultant. Payment can be claimed a within one month from the date of
submission of the Final Report

For further assistance please contact:

Sr.Project Executive / Project Executive,
Gujarat Energy Devlopment Agency,
4th Ffloor, Block No 11-12, Udyog Bhavan,
Sector-11, Gandhinagar.

Date of Isssue: APPLICATION FORM (Page I)

 ENERGY AUDIT STUDY
Gujarat Energy Development Agency Subsidy Scheme
th
4 floor,Block no.11-12, Udyog Bhavan, (2009-10)
Sector-11,Ghandhinagar-382 017
Tele:(079)23247086,23247089,23247090
Fax:(079)23247097, email:geda@info.com
Website:www.geda.org.in

The Director
Gujarat Energy Development Agency
Gandhinagar

Details of Applying Industry

Name of Applying Industry M/s
Classification
Full Address (for correspondence)
& Contact Tele/Fax.nos.

Name of Unit M/s

Site Addresss
(Unit to be energy audited)
Senior Management Contact Mr.
(at Factory Site) Designation:
Tele/Fax/Mobile Nos
Status of the Industry:
(Whether pvt., public, etc.)
Company Registration No:
Number of Employees
Approximate Floor Area

Details of GEDA Approved Consultant hired for the Energy Audit

Name of Consultant M/s
Address
Tele/Fax No:

Name of Contact Person

Details of Energy Audit Proposed

Cost of EA Study Rs. (Copy of Consultants’ offer)

Estimated mandays for EAStudy Mandays

Duration of the EA Study Mandays

 APPLICATION FORM (Page II)

Product & Processes

Annual Production
No. Products/Services
(in specific units)

Brief Description of the Manufacturing Process / Service

Annual Turnover(*): Rs.

Fuel / Energy Consumption

Annual Annual
Energy/Fuel Consumption in Source Unit Price in Expenditure on
specific units Rs. Energy(lakh Rs.)
Coal tons
High Speed Diesel Oil kL
Light Diesel Oil kL
Furnace Oil kL
LSHS kL
Electric Power lakh units
Grid
Liq.Petroleum Gas tons
Natural Gas
Captive (DG Set)
Others

Details of Power Demand

Contract Demand : ________ HP/ KVA/ kW Category : HT / LT / _______
(Enclose copy of the latest Power Bill)
 APPLICATION FORM (Page III)
Energy Consuming Processes/Equipments
S.No Name of Major energy Rated capacity Monthly Monthly Energy Related
consuming process / of process/ Operation Consumption Output
equipment equipment (inhours)

APPLICATION

Kindly grant subsidy under the GEDA Energy Audit Subsidy Scheme (2009-10) towards the cost of the
Energy Audit Study of our unit. M/s _______________________________________________________
to be conducted by M/s __________________________________________________GEDA’s authorized
Consultants.

We undertake to abide by the terms & conditions of the Scheme and would be willing to provide information
in response to a follow-up visit or to a postal enquiry from GEDA or its representative about the outcome of
the Energy Audit Study.

Date : _________________ Seal & Signature ____________________

Name of signatory: ____________________

Designation: ____________________

Encl.:
• Latest Annual Report of the Company
• Proposal of the Consultant alongwith the Scope of Study.
• Latest Electricity Bill

FOR OFFICE USE ONLY

Application received on : ________ Application processed on : ________

Sanction issued on : ______ for Rs. ___________ (Ref.no: GEDA/TEC:EC/EAS/______)

Draft EAS Report recd on: ________ Industry Visited on __________ by :

Payment processed on: __________ Payment relased on: ______________

 DECLARATION FORM - II

ENERGY AUDIT STUDY

Gujarat Energy Development Agency Subsidy Scheme
4th floor,Block no.11-12, Udyog Bhavan, (2009-10)
Sector-11,Ghandhinagar-382 017
Tele:(079)23247086,23247089,23247090
Fax:(079)23247097, email:geda@info.com
Website:www.geda.org.in

(To be certified by Chief Executive of the Industry or his equivalent)

1. We confirm that :
I. The study was carried out and the report was prepared in accordance with the agreed scope
of study and terms & conditions laid down by GEDA in the subsidy sanction
(Ref.No: GEDA/TEC:EC/EAS/2009-10/ __________ dated: __________;)
II. We are satisfied with the outcome of the study and the EA report and confirm that the data
contained in the report and in this form are correct to the best of our knowledge;
III. We are satisfied with the general business conduct of the Consultant;
IV. All the suggestions made during the presentation of the draft report have been incorporated
in the final report.

2. We declare that we have made full payment to the Consultant. Copy payment receipt/s enclosed
for reference.

3. We agree to provide information to a representative of GEDA, who may write or visit the site any
time in the future to collect feedback, on measures implemented and energy savings accrued as a
result of the Energy Audit.

4. We are herewith sending a brief summary of actions we propose to take as a result of this study.

5. We enclose herewith three [2] copies of the Energy Audit Study report.

6. Comments on the Energy Audit Report:

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Date : _____________ ______________________________________

Signature - for Industry

_______________________________________
Name & Designation of Signatory

Encl : 1. Two copies of Final Energy Audit Report

2. Copy of payment receipt/s issued by Consultant
3. Summary of EC Implementation Program.