Energy management in

industrial sector
Contents
 Energy Consumption
 Industrial energy consumption by fuel
 Industrial energy consumption by region

• Global Energy consumption increment

• Energy Management
i. Objective
ii. Organization structure and program
iii. Energy saving by management
• Energy saving by different technologies
• Industrial energy saving by policies
• Conclusion
Energy consumption
 Energy is an essential requirement all over the planet.
 The fastest development in energy interest anticipated for countries
outside the Organization for Economic Participation and
Development (non-OECD countries).
 Non OECD energy utilization was expanded by 73% contrasted with
a 15% increment in energy use among the OECD nations
 The USA consumes 25% of the world's energy.
 in China energy utilization developing at 5.5% each year.
 The industrial sector accounts for approximately 40% of total OECD
delivered energy use from up to 2040.
 . In the non-OECD industrial sector, the share of delivered energy
use declines from 64% to 59% in 2040.
 This concern should be addressed by the global local area to
overcome any lack of energy assets in future.
Industrial energy consumption by
fuel
 The industrial sector uses more delivered energy than any other
end-use sector, consuming about 54% of the world’s total delivered
energy.
 Fuel prices shape the mix of fuel consumption in the industrial
sector.
 Industrial sector can be categorized by three distinct industry types:
i. Energy-intensive manufacturing, food, pulp and paper, basic chemicals,
refining, iron and steel, nonferrous metals
ii. No energy-intensive manufacturing,
Pharmaceuticals (medicinal and
botanical), paint and coatings, adhesives, detergents, and other
miscellaneous chemical products, machinery, computer and
electronic products, transportation equipment,
iii. Nonmanufacturing, Agriculture, forestry, fishing Agriculture,
Mining ,Construction
Cont..
 Liquid fuels are more expensive than other fuels,
 World industrial sector liquid fuels use increased at an average
annual rate of only 0.68% and the share of liquid fuels in the
industrial fuel mix declines.
Regional Industrial energy consumption

 Currently non-OECD economies consume more than 60% of

worldwide conveyed energy in the modern area.
 ''BRIC'' nations (Brazil, Russia, India, and China) represent more
than 65% of the development in non-OECD modern energy use.
 OECD countries have been going through a progress from
assembling economies to support economies in ongoing many years
and overall use becomes by a normal of just about 0.2 % each year
to 2030.
Global energy consumption will rise by
2.2%
 In 2022, the overall picture for the energy sector will be one of growth,
as economies recover from the impact of the corona virus (Covid-19)
pandemic.
 Total energy consumption across the 69 countries covered by EIU’s
forecast will rise by 2.2%, to reach 13,410m tones of oil equivalent
(mote).
 That is higher than in 2019, compensating for the decline in
consumption seen during the pandemic
 However, it is also a slowdown from the rebound in 2021, as energy
consumption gradually normalizes.
 Nearly all parts of the energy sector—even Coal consumption will rise
by 1.5%, year on year, almost as fast as natural-gas consumption.
 Oil consumption, which was the area of the economy worst hit by
2020’s economic crunch, will rise by 2.7%. Solar and wind power will
soar by 10.6%.
Energy Management
 It is the judicious and effective use of energy to maximize
profits(minimize costs) and enhance competitive positions.
 It is 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 the systems.
 Nowadays, the role of energy management has greatly expanded in
industries.
 To be effective, energy management programs should include four
main sections.
i. Analysis of historical data.
ii. Energy audit and accounting.
iii. Engineering analysis and investments proposals based on
feasibility studies.
iv. Personnel training and information.
Objectives of energy management
 To minimize energy costs/waste without affecting production and
quality .
 to minimize environmental effects.
 To achieve and maintain optimum energy procurement and
utilization ,through out organization.
Organizational structure and energy management
program
• The components of comprehensive energy management program
are:
• the organizational structure, a policy and plan for audit, education,
reporting and strategy.
Types of energy savings by management
 There are many types of energy saving by management:
i. Industrial Energy audit.
ii. Energy efficiency courses and training program.
iii. Housekeeping.
Industrial Energy audit.
(A major tool of energy management).
• According to Energy Conservation Act,2001, Industrial 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 and
maximize organizational savings.
Objective of Industrial Energy Audit
 To determine the ways to reduce energy consumption per
unit of the product output or to lower operating costs in any
industry.
 To implement the energy cost reduction ,preventive
maintenance and quality control programs in any industry.
 To under stand more about the ways energy and fuel are
used in any industry, and help in identifying the area where
the waste can occur and where scope for improvement
exists.
 To keep focus on the variations which occur in the energy
costs , availability and reliability of supply of energy , decide
on appropriate energy mix , identify energy conservation
technologies ,retro fit for energy conservation equipments
etc.
Types of Industrial energy audit
The type of industrial Energy Audit to be performed depends on;
 The function and types of any industry.
 The Depth to which the final audit is needed.
 The potential and magnitude of the effective cost reduction desired.
Thus Industrial Energy Audit can be classified into following
types;
• Preliminary Energy Audit
• Detailed Energy Audit
Preliminary Energy audit
 Preliminary audit (alternatively called a simple audit, screening audit
or walk-through audit) is the simplest and quickest type of audit and
conducted in a limited span of time
Preliminary energy audit is conducted to
 Ensure top management commitment.
 Establish energy consumption in the organization.
 Estimate the scope for saving.
 Identify the most likely (and the easiest areas for attention).
 Identify immediate (especially no-/low-cost) improvements/ savings.
 Identify areas for more detailed study/measurement.
 Preliminary energy audit uses existing, or easily obtained data
Detailed Energy Audit
 The detailed audit (alternatively called a comprehensive audit,
Investment-grade audit, maxi audit, or technical analysis audit)
 A comprehensive audit provides a detailed energy project
implementation plan for a facility ,since it evaluates all major energy
using systems.
 This type of audit offers the most accurate estimate of energy
saving and cost. it consider the interactive effects of all projects,
accounts for the energy use of all major equipment, and includes
detailed energy cost saving calculation and project cost
 In a comprehensive audit ,one of the key elements is the energy
balance .This is based on an inventory of energy using systems,
assumptions of current operating conditions and calculation of
energy use. This estimated use is then compared to utility bill
charges.
Cont…
 Detailed energy auditing is carried out in three phase, I II III
Phase I -Pre Audit Phase
Phase II -Audit Phase
Phase III -Post Audit Phase
The Audit team should collect the following baseline data;
i. Technology, process used and equipments details
ii. Capacity utilization
iii. Amounts and type of input materials used
iv. Water consumption
v. Fuel consumption
vi. Electrical energy consumption
vii. Steam consumption
viii. Other inputs such as compressed air cooling water etc
ix. Quantity and types of waste generated
x. Percentage rejection/reprocessing
xi. Efficiencies / yield
Table for Audit phases steps
Energy efficiency courses and training
program
 Energy efficiency courses and training programs are very important
to increase the awareness of people who are involved in the
industrial sector.
Generally, there are two ways to get an industrial energy management
course.
 The first one is relevant to engineers working in industry, while
 The second is based on the energy management course at the
university level
Energy saving by housekeeping
 In industry, efficient production and a good working environment are
complementary. The elimination of inefficiencies and accident
hazards caused by unfavorable conditions in the workplace is
essential in getting the job done efficiently and safely.
 The attention to these important details is widely referred to as
‘‘good housekeeping’’
Energy saving technologies
 Applications of technologies have tremendous potential to reduce
industrial energy sue. Industrial energy use can also be reduce using
variable speed drive in motor operated system, high efficient motors,
efficient nozzles in compressed-air system, waste heat recovery
system in boilers etc

Industrial energy saving by policies

 Energy Policy is the manner by which a given entity (often
governmental) has decided to address issues of energy
development including energy production, distribution and
consumption.
 The attributes of energy policy may include legislation,
international treaties, incentives to investment, agreements,
guidelines for energy conservation, taxation, energy efficiency
standards,energy guide.
Cont..
 Energy policies are used widely in the industrial sector
 This policy engages not only the engineers and management at industrial
facilities, but also includes government, industry associations, financial
institutions, and others.
 There are many types of policies and programs that have been used in
countries worldwide to improve energy efficiency in the industrial sector.
Some of these policies and programs as include
 Regulations/standards
 Fiscal policies
 Agreements/targets
 Reporting/benchmarking
Conclusion
 The role of energy management is vital and has greatly expanded in
industries.
 Top management of the company participates in planning various
energy management projects on a regular basis.
 These savings strategies found to be economically viable in most
cases.
 It was also observed that effective public policies are also needed to
reduce industrial energy consumption
 Market conditions, asset management strategies ,corporate
involvement, a structure of authorities, and linking energy
performance to business goals all seem to be major factors in
effective corporate energy management programmes.
 More and more companies are tailoring programmes to their own
particular characteristics and needs .Their approach to energy
management reflects their organizational profiles and abilites,and
their commitment to improving productivity and profits through more
efficient energy use.