SUBJECT: ENERGY MANAGEMENT & AUDIT

CODE : EE 801C

Module 1 : Energy Management & Audit

Lecture 1
Energy is one of the key inputs for the economic growth of any country. Energy is the strength and
vitality essential for continuous physical or mental activity. Energy is the power derived from the
consumption of physical or chemical resources, especially to provide light and heat or to work
machines. The property of matter and radiation which is manifest as a capacity to perform work (such as
causing motion or the interaction of molecules). Energy is the ability to do work. Energy comes in
different forms such as Heat (thermal), Light (radiant), Motion (kinetic), Electrical, Chemical, Nuclear
energy, Gravitational.
Electrical utilities are becoming more and more stressed since existing transmission and distribution
system are facing their operation constrains with growing load. Now a days human life cannot be
imagined without electricity, saving energy means decreasing the amount of energy used while
achieving a similar outcomes of end use, because we know we are having limited amount of energy
resources in earth to generate electrical power. Energy demands and costs are increased over time.
Increasing usage of energy-intensive products and services directly disturbs the greenhouse-gas
emissions and climate change
To prevent our living earth from global warming, it is utmost importance to optimize the energy usage
in our home, offices, industries, institutions and other organizations. To save electrical energy and
resources for our future, energy audit is introduced. An energy audit can be simply defined as a process
of evaluating a building for the usage of electricity and identifying the opportunities to reduce
consumption.

Definition

An energy audit is a systematic approach that analyses the power flow and provides suggestions for
reducing the wastage of power. It is an inspection, review and study of energy flows, for energy
conservation in a building, process or system to reduce the amount of energy input into the system
without affecting the usual works and its output. In commercial and industrial real estate, an energy
audit is the first step in identifying opportunities to reduce energy expense and carbon footprints.
Energy management includes efficient planning and operation of energy production and energy
consumption units. The Objectives of energy management are resource conservation, climate protection
and cost saving and energy saving while the users have permanent access to the energy they need. It is
connected closely to environmental management, production management, logistics and other
established business functions. Energy management is the proactive, organized and systematic
coordination of procurement, conversion, distribution and use of energy to meet the requirements taking
into account environmental and economic objectives.

Definition of Energy Managementt

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“
Alternative Definition
"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"

SUBJECT: ENERGY MANAGEMENT & AUDIT

CODE : EE 801C
The basic objective of any Energy Management is to answer five simple questions:
 How much energy is consumed?
 How is the energy consumed?
 Where is the energy consumed?
 When is the energy consumed?
 What is the quality of the energy consumed?

In order to address these queries Energy Audits are conducted.

Definition of Energy Audit

As per Indian Energy Conservation Act 2001, Energy Audit is defined as:
“the verification, 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”

Need for Energy Audit and Energy Management

In any industry, the top three operating expenses are energy, labour, and minerals. Among the three,
energy ranks the top place, where there is an enormous amount of energy is required and also more
expense will be there and hence there is a need for managing the energy. Energy Audit will analyse the
energy consumption thereby providing a path to identify the areas, where wastage of energy occurs and
provide the scope for reducing the wastage.
The Energy Audit would give a positive orientation to the energy cost reduction, preventive
maintenance and quality control programmes which are vital for production and utility activities. Such
an audit programme will help to keep focus on variations which occur in the energy costs, availability
and reliability of supply of energy, identifying energy conservation technologies etc. In general, Energy
Audit is the translation of conservation ideas into realities, by lending technically feasible solutions with
economic and other organizational considerations within a specified time frame. The primary objective
of Energy Audit is to determine ways to reduce energy consumption per unit of product output or to
lower operating cost.
Energy Management includes planning and operation of energy production and energy consumption
units. Objectives are resource conservation, climate protection and cost savings, while the users have
permanent access to the energy they need. It is connected closely to environmental management,
protection management and other established functions.
The objective of Energy Management is to achieve and maintain optimum energy procurement and
utilization throughout the organization.
 To minimize energy codes or waste without affecting production and quality
 To minimize environmental effects

SUBJECT: ENERGY MANAGEMENT & AUDIT

CODE : EE 801C
Types 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, and
- Potential and magnitude of cost reduction desired

Thus, Energy Audit can be classified into the following types.

1. Preliminary Energy Audit
2. Targeted Energy Audit
3. Detailed Energy Audit

Preliminary Energy Audit

 Preliminary energy audit uses existing or easily obtained data

 Establishes the energy consumption in the organization
 Estimates the scope for saving
 Identifies the most likely areas for attention
 Identifies immediate(no cost or low cost) improvements
 Sets a ‘reference point’
 Identifies areas for more detailed study/measurement

Targeted Energy Audits

 Targeted energy audits are mostly based upon the outcome of the preliminary audit results.
 They provide data and detailed analysis on specified target projects.
 As an example, an organization may target its lighting system or boiler system or compressed air
system with a view to bring about energy savings.
 Targeted audits therefore involve detailed surveys of the target subjects/areas with analysis of
the energy flows and costs associated with those targets.

Detailed Energy Audit

Detailed Energy Audit evaluates all systems and equipment which consume energy and the audit
comprises a detailed study on energy savings and costs.
Detailed Energy Audit is carried out in 3 phases
 The Pre-audit Phase
 The Audit Phase
 The Post-Audit Phase

SUBJECT: ENERGY MANAGEMENT & AUDIT

CODE : EE 801C