20EE3221- ENERGY MANAGEMENT AND GREEN

BUILDINGS
Session-6- Energy Costs
1. Course Description:
Issues related to energy management and green buildings are covered in this course. Energy
management includes planning and operation of energy production and energy consumption
units as well as energy distribution and storage. 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, production management, logistics and
other established business functions. Energy conservation can be easily achieved through
green buildings. Hence green buildings is also a part of the course. It include creating
structures and using processes that are environmentally responsible and resource-efficient
throughout a building's life-cycle from siting to design, construction, operation, maintenance,
renovation and deconstruction. This course also discusses various green building
certifications.
2. Instructional Objectives:
The objective of the course is to establish the knowledge and awareness on energy
conservation. This course describes the energy audit methodology and energy conservation
opportunities assessment for various electrical energy utilities including cooling and heating
systems and significance of Green Buildings. This course also aim in identifying different
practices to improve the quality of green buildings.
3. Learning Outcomes:
Blooms Taxonomy
CO No Course Outcome (CO) PO/PSO
Level (BTL)
Apply energy audit for energy
CO 1 PO2,PO5/ PSO1 3
management in buildings

Interpret energy conservation

CO 2 PO1,PO7/ PSO2 2
opportunities in electrical systems

Identify energy management strategies for

CO 3 PO1,PO7/ PSO1 3
energy efficiency

CO 4 Identify practices for energy efficiency PO2,PO5/ PSO1 3

green buildings
4. Module Description:
In the first module, necessity and definition of energy audit will be explained. The
instruments used for energy audit will also be discussed. Energy costs, Bench marking,
matching energy usage to requirements will be explained. Various methodologies to be
implemented to maximize energy efficiency will be discussed.

5. Session Aim: The main aim of the session is to

1. Define energy costs
2. Understand Energy Costs calculation
6. Session Structure:
Teaching
Time - Active Learning
(min) Topic BTL Learning Methods
Methods
05 Introduction 2 TALK --- NOT APPLICABLE---
10 Define energy costs 2 PPT --- NOT APPLICABLE---
05 Asking questions and Doubts clarification 2 TALK --- NOT APPLICABLE---
20 Calculate Energy Costs 2 PPT --- NOT APPLICABLE---
10 Summary 2 TALK --- NOT APPLICABLE---

7. Introduction about the Session

Energy Cost means the cost of electricity, fuel oil, gasoline, heating oil, natural gas, or other
source of energy connected to the operation of a regional sewerage authority. Understanding
energy cost is vital factor for awareness creation and saving calculation.

8. Session description

Energy costs are not a fixed overhead, there is often a huge potential for making savings.
Understanding energy cost is vital factor for awareness creation and saving calculation. In
many industries sufficient meters may not be available to measure all the energy used. In
such cases, invoices for fuels and electricity will be useful. The annual company balance
sheet is the other sources where fuel cost and power are given with production related
information.

Energy invoices can be used for the following purposes:

 They provide a record of energy purchased in a given year which gives a baseline for
future reference.
  Energy invoices may indicate the potential for savings when related to productive
requirements or to air conditioning requirements/space heating etc.
 When electricity is purchased on the basis of maximum demand tariff.
 They can suggest where savings are most likely to be made.
 In later years invoices can be used to quantify the energy and cost savings made
through energy conservation measures.

Fuel costs:

A wide variety of fuels are available for thermal energy supply. Some of the fuels are:

Fuel oil, Low Sulphur Heavy Stock (LSHS), Light Diesel Oil (LDO), Liquefied
Petroleum Gas (LPG), Coal, Lignite, Wood etc.

Understand fuel cost is fairly simple and it is purchased in Tons or Kilolitres.

Availability, cost and quality are the three main factors that should be considered while
purchasing. The following factors should be taken into account during procurement of
fules for energy efficiency and economics.

 Price at source, transport charge, type of transport

 Quality of fuel (contaminations, moisture etc)
 Energy content (calorific value)

Power Costs

Electricity price in India not only varies from State to State, but also city to city and
consumer to consumer though it does the same work everywhere. Many factors are involved
in deciding final cost of purchased electricity such as:

 Maximum demand charges, kVA

 Energy charges
 TOD charges, Peak/Non-peak period
 Power factor
 Other incentives and penalties applied from time to time
 High tension tariff and low tension tariff rate changes
 Slab rate cost and its variation
 Type of tariff clause and rate for various categories such as commercial, residential,
industrial, Government agricultural, etc.
 Tariff rate for developed and underdeveloped area/States
 Tax holiday for new projects

13. Summary
In this session, energy costs necessity is discussed. Various energy costs are also
discussed.
14. SAQ’s–Self Assessment Questions
1. List out different types of energy costs.
2. Fuel cost is purchased in _______
15. Terminal Questions
1. Explain power costs in detail.
16. Case Study- NA
17. Answer Key
Answers to SAQ:
1. Cost of electricity, fuel oil, gasoline, heating oil, natural gas, or other source of energy
connected to the operation of a regional sewerage authority.
2. Tons or Kilolitres
Answers to Terminal Questions:

Power Costs

Electricity price in India not only varies from State to State, but also city to city and
consumer to consumer though it does the same work everywhere. Many factors are involved
in deciding final cost of purchased electricity such as:

 Maximum demand charges, kVA

 Energy charges
 TOD charges, Peak/Non-peak period
 Power factor
 Other incentives and penalties applied from time to time
 High tension tariff and low tension tariff rate changes
 Slab rate cost and its variation
 Type of tariff clause and rate for various categories such as commercial, residential,
industrial, Government agricultural, etc.
 Tariff rate for developed and underdeveloped area/States
 Tax holiday for new projects

18. Glossary

tariff a tax or duty to be paid on a particular class of imports or exports.

TOD Time of Day

19. References of books, sites and links:

T1. Energy Management: W.R.Murphy, G.Mckay (Butterworths)
Reference books:
1. Handbook of Energy Audits by Albert Thumann, Fairmont Pr; 5th edition
(1998).
2. Energy Management Hand book by Turner, Wayne C, Lilburn, The Fairmont
 press,2001

20. Keywords

Fuel costs
Power costs
Energy costs