Section 1.

4
Energy Audits

Certified Energy Manager® Energy Audits

Energy Audits 1

Learning Objectives & Contents

Awareness of:
• Energy Programs
• ISO 50001
• Energy Audits
• Audit Strategies & Approaches
• Benchmarking and Utility Rates
• Level 1, 2 and 3 Audits
• Investment Grade Audits
• Report Components & Best Practices

Ability to:
• Do Basic Energy Audit Functions and Estimates

Certified Energy Manager® Energy Audits 2

V2022.03.SI 1
 If you want to start an Energy Mgmt. Program
ASK: Why the organization is interested in Energy Management?
• Are utility bills perceived as high?
• New government programs or regulations?
• Benchmarking requirements?
• Some other compelling event?

Certified Energy Manager® Energy Audits 3

Starting An Energy Management Program

• Designate an Energy Manager/Energy Management Team
• Should not necessarily be added to someone’s existing job duties

• Top management must provide support for:

1. Setting goals and getting inter-company cooperation
2. Collecting energy use and cost data
3. Funding to implement the most cost-effective improvements as well as on-going
training, behavior modification, etc.

Certified Energy Manager® Energy Audits 4

V2022.03.SI 2
 Running an Energy Management Program
• A lot of effort goes into performing the energy audit, as well as the
management system (for continuous improvement).

• Prioritize:
1. Waste elimination & conservation projects
2. Low-risk projects
3. Projects requiring significant capital investment

There is “no end” to a good program

Certified Energy Manager® Energy Audits 5

Approach Model: Continual Improvement

• Mgmt. commitment
• Management review • Energy policy
• Review policy, obj. & targets, Act Plan • Obj. & targets
resources, results • Scope & boundaries
• Cont. improvement actions • Resources, Energy Team Roles &
• Recognition responsibilities
4 1 • Review baseline, Significant
Energy Users
• Opportunities, action plans
• Legal conformities

• M&V analysis
• Internal audit
3 2 •
•
Implementation, operation
Design
• Performance against energy • Document
policy & obj. Check Do • Training & awareness
• Non-conformities • Communication
• Corrective action • Operational controls
• Preventive action • Procurement
ISO.org

Certified Energy Manager® Energy Audits 6

V2022.03.SI 3
 Benefits of ISO 50001
ISO – International Standards Organization

• Energy management standard similar to approaches: ISO 9001 and ISO 14001
• Requires that top management establish, implement and maintain an energy
policy designed to improve energy performance.
• ISO 50001 designed to:
• Raise the profile of energy management within any organization
• Help companies manage their energy consumption
• Evaluate and prioritize the implementation of energy-efficient technology
• Promote efficiency throughout the organization
www.energy.gov/ISO50001
www.ISO.org

Certified Energy Manager® Energy Audits 7

DOE and EPA

Resources Available
EPA:
• “Guidelines for Energy Management” discusses how to form an energy management
team and set corporate energy policy
• “U.S. Environmental Protection Agency Energy Treasure Hunt Guide: Simple Steps to
Finding Energy Savings”

DOE: www.energy.gov/ISO50001
• 50001 Ready – for organizations that are starting out, receive DOE recognition for
implementation

• SEP/50001 – for organizations that want to certify conformance with ISO 50001 and
validate energy savings achieved during implementation of the standard.

Certified Energy Manager® Energy Audits 8

V2022.03.SI 4
 “Treasure Hunts”
Energy Star Program

• Good training guides

• Checklists and “Treasure

Maps” for different facility
types

Certified Energy Manager® Energy Audits 9

General Energy Audit Approaches

Do Energy Conservation First
Audit Approaches Typical Returns on Investment
Energy Conservation > 100%
Fixing Leaks, Traps, Turning Equipment or Lights Off,
Correcting Control Over-rides, Correcting VFDs that
are in “bypass” mode, etc.
Demand Side Management > 50%
Demand Response, Shifting Loads to use equipment
during “off peak” hours

Equipment Replacement > 20%

Lighting, Motors, etc.
Renewable Energy Varies
Certified Energy Manager® Energy Audits 10

V2022.03.SI 5
 Typical Energy-Related Systems
• Maintenance
• Building Automation
• Steam and Water
• Compressed Air
• Motors and Pumps
• Lighting
• HVAC and Refrigeration
• Onsite Power, Microgrids, Renewable Energy
• Data Centers
• Conveyance: Elevators and Escalators
• Building Envelope
• Plug Loads

Certified Energy Manager® Energy Audits 11

Finding the Savings Opportunities

Finding Saving Opportunities
Start at the point of end-use and work back.
Focus on the “End Use” and best way to deliver that result
PURCHASE CONVERSION END USE LOST

MECHANICAL
MOTOR ENERGY
FLOW HEAT
PUMP/FAN
HEAT

LIGHT
WORK AREA HEAT

HEAT
HEATERS
COMPRESSOR
MOTOR
ELECTRICITY
HEAT

LIGHTING
WORK AREA HEAT

Certified Energy Manager® Energy Audits 12

V2022.03.SI 6
 Energy Audit & Project Development Process
Understand Estimate Confirm Implement
Level I Audit Level II and/or
Level III Audits and/or
Define Areas to Investment Grade Audits
Investigate & If Needed,
Share Information Approve
Detailed
Analysis

Implement Measure
Project
Project &
Approval
Verify

Initial Present Conduct

Introduce Project
Walk- Preliminary Detailed
Concept Presentation
Through Findings Analysis

Certified Energy Manager® Energy Audits 13

Critical Data to Collect Before a Site Visit

1. Customer’s Goals
• Why they want to do energy management?
• “Financial Criteria” to approve projects (what is their MARR?)
• Do they have a budget to fund projects?

2. Utility Data:
• Rate and tariff structures
• 24 months of bills

3. Customer’s Information:
• Facility map and operational hours for each area
• List of major energy consuming equipment
• Benchmarking data if available
• Prior audit reports

Certified Energy Manager® Energy Audits 14

V2022.03.SI 7
 Energy Audit Types Level 1 Level 2 Level 3

Accuracy Accuracy Accuracy

• Benchmarking Audit
•-30% to -50% Savings •-15% to -25% Savings •-5% to -10% Savings
•+30% to + 50% Costs •+15% to + 25% Costs •+5% to + 10% Costs

Uses Uses Uses

•Monitoring •Detailed feasibility •Advanced Investment

• Level I •Scoping
•Qualification
•Firm internal funding
requests
Feasibility Study – more
detail for a larger, more
complex facility
•Key feasibility study for
small facilities or simple •External Funding Requests
energy systems LOE (Typical) •System Specific Detailed
Feasibility Study

• Level II
•Small-Medium
Building
•1 week on site
Level of Effort “LOE” LOE generally the same as
(Typical) •2 weeks office Level 2
report writing
•Small-Medium Building •LOE determined by detail
•Large Building
•1 days on site required and / or

• Level III
•2 Weeks on site complexity of a sub system
•1 week office report •4 weeks office
writing report writing
•Large Building
•2 days on site
•2 weeks office report
writing
Source: Econoler

Certified Energy Manager® Energy Audits 15

Benchmarking Audit
Can be done without a Site Visit

Generally thought of as a “Preliminary Energy Audit”

• Essentially an analysis of energy use based on actual utility bills which is then
compared to some normative, i.e. Portfolio Manager by EPA/DOE

• Energy Use Index (EUI) and Energy Cost Index (ECI) and/or other benchmarks

• Used by many ESCOs and consultants because it can quickly identify facilities
that use significantly more energy than the average

Certified Energy Manager® Energy Audits 16

V2022.03.SI 8
 Level I Energy Audit
“Walk-Through”

• On-site visual inspection and review of prior audits

• Identify operation & maintenance issues and practices
• Identify “No-Cost or Low-Cost” opportunities
• Include rough estimates of potential projects’ costs and savings
• or rough payback per project

Certified Energy Manager® Energy Audits 17

Level II Energy Audit

“Energy Survey and Analysis” (More Detailed Audit with Measurements)

• Breakdown of energy use in the building by category (“Energy Balance”)

• Review O&M procedures
• Qualitative assessment of maintenance practices
• Review setpoints, schedules, etc.
• Take measurements, collect data, etc.
• Produce a detailed savings & cost analysis of projects using calculations
that estimate energy use according to the size, load, efficiency, hours, etc.
• List potential capital-intensive improvements requiring further analysis

Certified Energy Manager® Energy Audits 18

V2022.03.SI 9
 Level III Energy Audit
“Detailed Analysis of Capital-Intensive Modifications”

• Determination of selected opportunities with owner

• Provides detailed project cost and savings information with a level of
confidence high enough for major capital investment decisions
• Requires detailed field data gathering and engineering analysis
• Usually has quotes from vendors regarding installation costs
• May involve computer modeling
• Requires a Life Cycle Cost analysis (LCCA)
• Requires “Risk Assessment”
• Present “High”, “Low” and “Most Likely” potential outcomes

Certified Energy Manager® Energy Audits 19

Investment Grade Audit “IGA”

Essential Components

• This audit includes weighing financial risk into the economic calculations
of a Level II or III Energy Audit

• Enhanced financial analysis including Life Cycle Cost

• Includes analysis of potential changes or other variances
• May require computer modeling of the facility

• This audit can be utilized to obtain funding for the projects identified

Certified Energy Manager® Energy Audits 20

V2022.03.SI 10
 Choosing the Level of the Energy Audit
• A progression from Level I, then Level II or III is normal, with each
increasing level costing more $
• Tips:
• A small facility with basic HVAC and lighting systems might not need a Level 3 Audit
• A facility with compressed air or steam systems, etc. likely needs a minimum of a
Level II Audit (and to really evaluate a particular system, a Level III Audit is common)
• The larger the potential investment of funds (or the number of potential projects)
will frequently determine which audit is best

The experience and skill of the energy auditor is very important

Certified Energy Manager® Energy Audits 21

Energy Audit Report Components

• Executive Summary… Prioritize projects to the reader’s needs!
• Site Information:
• Facility identification, owner, address, floor area, use(s) of building, number of stories,
year constructed and renovations, occupied hours, number of occupants, dates of any
previous energy studies, historical energy bills, current rate/tariff structure.
• Benchmarking, EUI and ECI calculations
• Established Target and Estimated Savings
• Low-Cost/No-Cost Recommendations
• Energy Efficiency Measures that require capital investment

Additional report components are on the next few slides…

Certified Energy Manager® Energy Audits 22

V2022.03.SI 11
a Location: ABC Facility
ion Data ]

ergy Daily Load Demand Energy Adjust Sub Total --- Demand Block Allocatio
Wh Days kWh Factor Cost Cost (+/-) Total Cost
06,703 30 33,557 78% $21,250 $50,365 ($11,147) $71,615 $64,701
06,383 31 38,916 85% $22,750 $56,441 ($13,204) $79,191 $70,607
42,286 28 30,082 90% $15,250 $42,144 ($9,263) $57,394 $51,501
02,176 31
13,021 30
35,554
40,434 Load Factor (LF)80%
90%
$22,000
$22,300
$53,315 ($12,132)
$56,641 aka:
$75,315
Facility Electrical
($13,252)
$67,606
$78,941 Load $70,287
Factor (FELF)
39,599 31
50,195 30
43,213
28,340
Used to determine the potential for Demand Shifting or Scheduling
82%
76%
$27,250
$17,650
$60,438
$42,540
($14,716)
($9,438)
$87,688
$60,190
$78,080
$54,304
48,747 31 30,605 81% $17,800 $47,467 ($10,429) $65,267 $58,677
13,798 31
73,054 30
39,155
45,768
Indicates potential for energy management (scheduling loads to minimize
84%
83%
$23,500
$28,750
$56,664
$61,442
($13,308)
($15,111)
$80,164
$90,192
$71,536
$80,337
47,059 31 43,454 energy expenses)86% $25,750 $60,662 ($14,731) $86,412 $76,699
24,475 30 34,149 59% $30,250 $50,984 ($11,685) $81,234 $74,418
67,496 364 • Low LF$274,500
means excessive
$639,104 demand
($148,415) for a short duration
$913,604 $818,752

Monthly Load Factor (%)

Low Load
100% Factor
80% 90% 90%
85% 86%
78% 80% 82% 81% 84% 83%
76%
60%
59% High Load
40%
Factor
20%

0%
Certified Energy Manager® Energy Audits 23

Energy Cost Demand Cost

$100,000
$80,000
$60,000
Cost ($)

$40,000
$20,000

Example: Facility Electric Load Factor

$0
Nov-99
May-99
Mar-99

Sep-99
Apr-99

Dec-99
Oct-99
Feb-99

Aug-99
Jan-99

Jul-99
Jun-99
Dec-99
Nov-99

Actual kWh Used kWAvg

Load Factor = =
Peak kW ∙ Time kWPeak
For Example: Compute monthly load factor when
• Peak kW = 1,250 kW
• Energy use = 500,000 kWh
• Time = 720 hours (24 hours/day x 30 days/month)
500,000 kWh
LF = = .556 ⇒ 55.6%
1,250 kW ∙ 720 hrs

Note: A poor load factor probably indicates short periods of high kW: good to calculate during
benchmarking and then observe opportunities when on the site visit.

Certified Energy Manager® Energy Audits 24

V2022.03.SI 12
 Energy Balance for a Facility
Purchased Electricity Purchased Natural Gas
2,597,700 kWh 34,794 GJ

Boilers
Lighting
34,974 GJ
130,560 kWh
Facility
Motors Electric Heaters
1,516,619 kWh
HVAC Miscellaneous 100,100 kWh
34,286 kWh 260,000 kWh
Air Compressors
Chillers
116,376 kWh
274,560 kWh

Certified Energy Manager® Energy Audits 25

Regression Model Example

Used to see if Energy Consumption is correlated to weather, production,
other variables, etc.
Step 1: Get Data
Step 2: Graph (next page)
Step 3: Do Regression Analysis

Certified Energy Manager® Energy Audits 26

V2022.03.SI 13
 Regression Model Example (Continued)
Can be used to predict the correlation between energy use and weather (or other variables)

y = mx + b
y: kWh Consumption

m: Slope of the line (how much kWh per

independent variable)

x: Independent variable (Degree Days, or

Production Output, Occupancy Hours, etc.)

R2 is the “Coefficient of Determination” and measures the strength of the relationship between your model
and the dependent variable on a convenient 0 – 100% scale

Certified Energy Manager® Energy Audits 27

The Audit should:

• Identify Significant Energy Users (SEU’s)
• Identify Key Performance Indicators (KPI’s)
• Identify, qualify and quantify the opportunities
• Provide an action plan for the client

Be sure to list all the things you considered but did not “make the cut”
for further analysis because of long payback etc.

Certified Energy Manager® Energy Audits 28

V2022.03.SI 14
 Review
Awareness of:
• Energy Programs
• ISO 50001
• Energy Audits
• Audit Strategies & Approaches
• Benchmarking and Utility Rates
• Level 1, 2 and 3 Audits
• Investment Grade Audits
• Report Components & Best Practices

Ability to:
• Do Basic Energy Audit Functions and Estimates

Certified Energy Manager® Energy Audits 29

Quiz #1
1. Why do you perform an energy audit?

A. To find ways to save energy

B. To identify opportunities for improvement
C. To reduce utility spend
D. All of the above

Certified Energy Manager® Energy Audits 30

V2022.03.SI 15
 Quiz #2
2. Why would you perform an Energy and Demand Balance on a facility?

A. To breakdown consumption by user

B. To assess the Significant Energy Users
C. To determine where the largest opportunity resides
D. All of the above

Certified Energy Manager® Energy Audits 31

Quiz #3
3. What distinguishes an ASHRAE Level III Audit from a Level I Audit?
A. A Level III Audit likely comes complete with actual vendor implementation quotes
B. A Level III Audit may involve a computer modeling program, whereas it is
uncommon at Level I
C. A Level I Audit is just as accurate as a Level III for most clients
D. A & B
E. A & C

Certified Energy Manager® Energy Audits 32

V2022.03.SI 16
 Quiz #4
4. A 100 kW electrically-powered oven operates within a manufacturing
facility that only operates 8am to 5pm. The facility does not have access to
natural gas, and is on the utility’s demand-ratcheted peak kW rate between
the hours of 2pm through 7pm. The oven is only needed 30% of the time to
dry parts in batches (which are assembled in the afternoon on the following
day). Which of the options below should you pursue first (to reduce the
utility bill)?
A. Purchase a propane gas-powered oven, install storage tanks and distribution lines
to the oven.
B. Only operate the electric oven from 8am-Noon.
C. Operate the oven during the afternoon to maximize the ratchet and savings.

Certified Energy Manager® Energy Audits 33

V2022.03.SI 17