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Energy Conservation, Audit and Accounting
Energy Conservation, Audit and Accounting
Energy Conservation, Audit and Accounting
Energy audit is one of the most important tools for energy conservation
and for achieving energy efficiency. It provides the means to identify the
areas of leakage, wastage or inefficient use. It helps in identifying measures
suitable for reduction of T&D losses. Thus, it helps in effective management of
energy consumption and can lead to significant cost and energy savings as
well as increased comfort, lower maintenance costs, and extended equipment
life.
Therefore, in this unit, we discuss the concept and process of energy audit in
relation to the power distribution sector. We would like to sensitise you to the
importance of energy audit so that you can appreciate its need in a power
utility. In the next unit, you will learn about demand-side management, which
is an effective way of bringing about energy conservation.
You may be familiar with financial audit. You may know that it is an
examination of accounts dealing with funds or property by officers appointed
for the purpose and hence, a calling to account, an examination into one’s
action.
• introduce checks and balances in the system for reducing leakages and
losses; and
• achieve technical performance.
In any industry, the three top operating expenses are often found to be
energy, labour and materials. Amongst the three, energy emerges as the top
ranking area for cost reduction. Energy audit can help us understand more
about the ways energy and fuel are used in the industry, and help in
identifying the areas where waste can occur and where scope for
improvement exists.
There are several types of energy audits. These are listed below in order of
increasing scope and, therefore, cost:
• Preliminary Audit,
• Utility Cost Analysis,
• Standard Energy Audit, and
• Detailed Energy Audit. ion
You may like to study these types of energy audit in some detail.
This is the simplest and quickest type of audit. It focuses on evaluating the
energy usage pattern and generates baseline data on the operational
practices in vogue. It is a relatively quick exercise to:
Typically, only major problem areas are uncovered during this type of
audit. Corrective measures are briefly described, and quick estimates of
implementation cost, potential savings, and simple payback periods are
provided. This level of detail is adequate to prioritize energy efficiency projects
and determine the need for a more detailed audit. Recommendations
resulting from a preliminary audit include low to no-cost actions that can
provide immediate energy use and/or operating savings.
The purpose of this type of audit is to analyze the operating costs of the
facility, and determine the potential for energy efficiency retrofits. The
auditor may also perform a preliminary audit to familiarize himself/herself with
the facility. Utility data and the facility’s utility bills are analyzed for the past 71
Energy Conservation, several years to identify patterns of energy use, peak demand, and
Audit and Accounting weather effects. This information is used to identify energy savings
potential, calculate the energy utilization index, and determine the
incremental cost of each unit of energy.
The detailed audit, also called a maxi audit, site-energy audit or complete site
energy audit, expands on the preliminary audit. It is carried out by collecting
more detailed information about the operation and performing a more detailed
evaluation of energy conservation measures. It follows essentially the same
steps as the standard audit; however, it is broader in scope and usually
takes more time. Computer simulation tools are typically employed, and more
detailed metering of consumption is undertaken. The economic analysis
involves an integrated systems approach which accounts for interactions in
implementing multiple retrofit measures, such as lighting and HVAC.
Utility bills are collected for a period of 12-36 months to allow the auditor to
evaluate the facility’s energy demand to rate structures, and energy usage
profiles. The additional metering of specific energy consuming 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 as well as to gain an insight into the variations in
consumption and demand.
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This type of audit helps in identifying all energy conservation measures Energy Auditing
appropriate for the facility. 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.
So far, you have studied about the concept of energy audit, its aims and the
types of energy audit. You may now like to know as to how an energy audit is
conducted in a power distribution utility. This is what we discuss in the next
section. But before that, we would like you to check your own understanding of
the concepts you have studied so far.
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The various steps in the methodology for conducting a detailed energy audit
for an industry may be outlined as follows:
It may not be possible to conduct energy audit for the entire power system of a
utility in one go. This could be due to financial, organizational and logistical
constraints. Hence it may have to be conducted in stages. A compact area of
the power system would have to be identified and energy audit studies taken
up. We now describe briefly the procedure to determine technical and
commercial losses for an 11 kV feeder.
We consider the steady state model to find technical losses and take the loads
to be of constant impedance.
4. 11 kV Feeder Loss
a) 1% of the total energy sent out through the 11 kV line from the
substation, for the 11 kV lines of 20 km and more, and
b) 0.5% of the total energy sent out through the 11 kV line from the
substation, for the 11 kV lines of less than 20 km.
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Energy Conservation, The total technical loss in the 11 kV feeder is the sum of the various
Audit and Accounting losses described above.
1. 11 kV line losses,
2. Distribution transformer (no load and load) losses,
3. LT network losses, and
4. Energy losses in loose jump connections, service
mains and energy meters.
The meter reading schedules of meter readers are revised and made
coterminous with distribution transformers. On that day, the distribution
transformer meter is also read and comparison is made between distribution
transformer meter reading and sum total of consumption recorded in all other
consumer meters coming under that distribution transformer. The difference is
noted (see Fig.3.1). If the losses are found to be high, action is initiated to
trace the installation causing losses.
It is very difficult to get a very accurate picture of these losses due to the
following reasons:
Energy Balance = 15 MU
Output = 6 + 5 + 3
10
10MU
MU 5 MU
5 MU
= 14 MU
Loss = 1 MU
= 6.6%
6 MU 5 MU 3 MU Feeder 1 Balance
Input = 6 M U
2 MU
Feeder 1 Feeder 2 Feeder 3 HT consum ers = 2+1.2
= 3.2 M U
DT DTs = 0.6 + 1+ 0.2
0.6 M U = 1.8 M U
DT 1M U 3 Output = 3.2+1.8
= 5 MU
1 MU DT M ETER Balance
Loss = 1 MU
Input
1.2 M=U1 M U
1 = 16.66%
DT 1+N = 0.97 M U N
0.2 M U Loss = 0.03 MU
= 3.0 %
Proper and accurate meters, meter reading, meter testing and calibration,
billing and collection systems are essential for effective and accurate energy
accounting and audit. The meters for energy accounting and audit are termed
as system meters which basically are meters at S/S, outgoing feeders,
distribution transformers, etc. The role of meters for energy accounting and
audit, i.e., system meters is to arrive at operating and performance
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parameters, energy accounting and energy audit. System meters are
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generally not used for measuring energy for commercial purposes, and hence
UTILITY TAKE TO
need not cater to any tariff structure.
CARRY OUT AN
Conducting an effective energy audit will be possible only through a perfect ENERGY AUDIT?
mechanism where the required facilities are available.
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Audits will usually culminate in an energy audit report that must be easily
readable and digestible by both technical and non-technical audiences.
We now briefly describe what the energy audit report should contain.
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The exact format of an audit report depends on the specific objectives of the
audit and on the nature of the plant under audit. There is no particular
standard format for audit reports, but it is important that the report be clear and
concise rather than being written in a rigid predefined format. It should include
charts and graphs to display information graphically whenever possible. All
assumptions should be clearly stated and explained. Recommendations must
be as clear as possible and include quantitative detail. Per
Preface
This should be in the form of a short note indicating when the audit was
carried out. It should acknowledge the assistance of personnel at the plant
giving the names of those who participated in the audit and supported it.
Executive Summary
This section indicates total plant consumption and the major users of each
energy form.
Findings
Recommendations
• Energy utilization;
• Measures requiring further analysis;
• Separate project summary; and
• Action plan.
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Energy Conservation, The worksheets given in Tables 3.2 and 3.3 can be used as guidance for
Audit and Accounting energy audit assessment and reporting.
1.
2.
3.
4.
Total
A No investment (Immediate)
• Operational Improvement
• Housekeeping
• Controls
• Equipment Modification
• Process change
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On the basis of the energy audit, certain actions can be recommended to Energy Auditing
reduce losses. We briefly outline them here.
• Reconfiguration;
• Reconductoring;
• Employing Shunt Capacitors;
• Conversion from Single Circuit to Double Circuit;
• Setting up of more Substations;
• Changeover from Low Voltage Distribution System (LVDS) to High Voltage
Distribution System (HVDS).
• Changeover to static meters with tamper proof data and remote metering
facility;
• Replacing all burnt, stuck up, non-performing and underperforming meters;
• Calibrating the existing meters;
• Flying squads and Special task force for detection of pilferage of energy;
• AMR for online energy recording.
You will study this aspect in detail in Block 4 of the course BEE-001.
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• Energy audit is one of the most important tools for energy conservation
and for achieving energy efficiency. An energy audit is an in-depth
study of a facility to determine how and where energy is being used
or converted from one form to another, and identify opportunities to
reduce energy usage and prevent energy losses. It is the technique
to establish the current status of energy efficiency of a system.
• The aims of energy audit are to review and upgrade the procedure for
energy accounting, review the technical efficiency of system elements in
sub-transmission and distribution (ST&D) system, analyze the techniques
for measuring the energy received, energy billed and the corresponding
revenue collection, review the performance of equipment, meters,
distribution transformers, etc., segregation of technical and non-technical
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Energy Conservation, losses, establishment of norms for checking the consumption of various
Audit and Accounting categories of consumers and overall energy balance in the circles.
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1. Explain the need for energy audit giving examples from your own
experiences in a power distribution utility.
2. Which of the objectives of energy audit in the unit are relevant for your
utility? Explain with examples.
3. What are the benefits of an energy audit for a power distribution utility?
6. Explain how the energy audit exercise can benefit from the use of
information technology.
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Energy Auditing
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This format is prepared for the industry under study. Generally, the information
to be gathered includes:
• Electrical system: power factor, load variations, daily and seasonal load
curves, maximum demand data, electricity charges for maximum demand
(kVA), kWh, ToD charges, Electricity tariff for High Tension and Low
Tension category consumers and for commercial, residential, industrial,
government and agricultural consumers, etc.
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