Energy Management

& Audit
Syllabus: Energy Management & Audit:
Definition,Energy audit- need, Types of energy
audit,
Energy management (audit) approach-
understanding energy costs, Bench marking,
Energy performance, Matching energy use to
requirement, Maximizing system efficiencies,
Optimizing the input energy requirements.
Fuel and energy substitution

Energy audit instruments

 Definition of Energy Audit
“The judicious and effective use of energy to
maximize profits (minimize costs) and enhance
competitive positions”
“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”
Principles of Energy Management
 Procure energy at lowest possible price
 Manage energy use at highest energy
efficiency
 Reusing and recycling energy
 Select low investment technology to meet
present requirement and environment
condition
 Make use of wastes generated within the
plant as sources of energy and reducing the
component of purchased fuels and bills
Energy Management Skills

Managerial Skills
– Awareness, motivating employees
– Changing structures and procedures
– Monitoring energy consumption and
target setting
Technical Skills
– Well-versed with processes, energy
utilization technologies
Energy
Management
Steps
Energy Management
Strategies

1. Strategic Corporate Approach

 Establish clear accountability for

energy management
 Allocate finance and staffing
resources
 Initiate reporting procedures
Energy Management
Strategies

2. Appointment of Energy Manager

Preferably Senior manager

Responsible for overall coordination
Reporting directly to top management
With technical background and familiar
with organizational activities
Energy Management Strategies

3. Set up an energy monitoring and

reporting system
 Set up system to collect, analyse and report
on organization energy costs and
consumption
– This will provide overview of energy use and
related cost and identification of savings
 Recoding of historical as well as ongoing
energy use and producing summary reports
Energy Management Strategies

4. Conduct Energy Audit

 Where and how energy is used and

evaluate potential for savings
 Walk through survey, energy systems
Review, Energy use analysis, energy
budget to provides baseline for
comparing energy use over time
 Audit by in-house or from outside
Energy Management
Strategies
5. Formalise an Energy Policy
Statement
 Guide efforts towards improving energy
efficiency
 Represents commitment to saving energy
 Ensure that success is not dependent on
individuals
 Declaration of commitment from top
management
Energy Policy
 Indicates general aims as well as targets
relating to
 energy consumption reduction
(electricity, Fuel oil, gas, petrol,, etc.)
– energy cost reduction (by lowering
consumption and negotiating lower unit
rates)
– timetables
– budgetary limits
– energy cost centers
– organisation of management resources
 Rashtriya Ispat Nigam Limited
Visakhapatnam Steel Plant

ENERGY POLICY
We, at Visakhapatnam Steel Plant, are committed to optimally utilise various forms of
energy in a cost effective manner to effect conservation of energy resources. To
accomplish thi
s we will :
 Monitor closely and control the consumption of various forms of energy through
an effective Energy Management System.
 Adopt appropriate energy conservation technologies.
 Maximise the use of cheaper and easily available forms of energy.
 Make energy conservation a mass movement with the involvement of all
employees.
 Maximise recovery of waste energy.
 Reduce Specific Energy Consumption by 1% per year by 2010.

Date Dr. B.NSingh

14-06-2002 Chairman cum Managing Director
Energy Management
Strategies
6. Prepare and undertake detailed
implementation plan
 Project implementation plan should be
developed as part of energy management
– Plan should include implementation time frame,
funding and budgetary requirement
 Projects can be diverse such as Changing or
establishing operational procedures,
renegotiating electricity supply, asset
acquisition etc.
Energy Management
Strategies
7. Implement staff awareness and
training programme

– Key is to maintain high level of

awareness among staff
– Formal training sessions, news letters,
posters, publications etc.
– Communication of programs and case
studies that demonstrate energy savings
– Outside specialist training
Energy Management
Strategies

8. Annual Review

 Review of energy management policy

and strategies will form the basis for
developing an implementation plan for
the next 12 month
Types of Energy Audit

 Preliminary energy audit

 Detailed energy audit

 Type of energy audit chosen

depends on
– Function and type of industry
– Depth to which final audit is needed
– Potential and magnitude of cost
reduction desired
 Steps in conducting Preliminary
Energy Audit

1. Plan how to obtain useful data

– Plan how to win the involvement/ commitment of
others
2. Collect data
 Collect existing data e.g., a energy
bills(volume/cost)
 Collect Production output/records plant layouts
using checklists
3. Analyse data
 Find unit cost of energy (Rs./ kWh for all types)
 Find fixed and variable energy element
 Derive ‘energy Index’: energy cost/unit output,
energy cost/floor area
 Steps in Conducting Preliminary
Energy Audit

4. Formulate plan
Formulate Immediate energy-saving
actions: Where? How ? How much?
– Areas to investigate further
– Resources required for more detailed
study
5. Action and Monitoring
6. Next steps (e.g Need for detailed
Audit)
Detailed Energy Audit

 Evaluates all energy using system,

equipment and include detailed
energy savings and costs

 Carried out in 3 phases

– Pre-audit Phase
– Audit Phase
– Post-Audit
 Ten Steps Methodology for Detailed Audit
Step
PLAN OF ACTION PURPOSE / RESULTS
No
Phase I –Pre Audit Phase

Step 1  Plan and organise  Resource planning, Establish/organize a

 Walk through Audit Energy audit team
 Informal Interview with  Organize Instruments & time frame
Energy Manager, Production  Macro Data collection (suitable to type of
/ Plant Manager industry.)
 Familiarization of process/plant activities
 First hand observation & Assessment of
current level operation and practices

Step 2  Conduct of brief meeting /  Building up cooperation

awareness programme with  Issue questionnaire for each department
all divisional heads and  Orientation, awareness creation
persons concerned (2-3 hrs.)
 Phase II –Audit Phase
Step 3  Primary data gathering,  Historic data analysis, Baseline data
Process Flow Diagram, & collection
Energy Utility Diagram  Prepare process flow charts
 All service utilities system diagram
(Example: Single line power distribution
diagram, water, compressed air & steam
distribution.
 Design, operating data and schedule of
operation
 Annual Energy Bill and energy consumption
pattern (Refer manual, log sheet, name plate,
interview)
Step 4  Conduct survey and  Measurements :
monitoring Motor survey, Insulation, and Lighting
survey with portable instruments for
collection of more and accurate data.
Confirm and compare operating data with
design data.
Step 5  Conduct of detailed trials  Trials/Experiments:
/experiments for selected - 24 hours power monitoring (MD, PF,
energy guzzlers kWh etc.).
- Load variations trends in pumps, fan
compressors etc.
- Boiler/Efficiency trials for (4 – 8
hours)
- Furnace Efficiency trials
Equipments Performance
experiments etc

Step6  Analysis of energy use  Energy and Material balance & energy
loss/waste analysis

Step 7  Identification and  Identification & Consolidation ENCON

development of Energy measures
Conservation (ENCON) Conceive, develop, and refine ideas
opportunities Review the previous ideas suggested by unit
personal
Review the previous ideas suggested by
energy audit if any
Use brainstorming and value analysis
techniques
Contact vendors for new/efficient
technology
Step 8
 Cost benefit analysis  Assess technical feasibility, economic
viability and prioritization of ENCON
options for implementation
 Select the most promising projects
 Prioritise by low, medium, long term
measures

Step9  Reporting & Presentation to Documentation, Report Presentation to the top

the Top Management Management.
Step10 Phase III –Post Audit phase

 Implementation and Follow- Assist and Implement ENCON recommendation

up measures and Monitor the performance
Action plan, Schedule for
implementation
Follow-up and periodic review
Drawing process flow diagram -Identification of waste
streams and obvious energy wastage
Reporting Format for Energy Conservation Recommendations
A: Title of Recommendation
B: Description of Existing System
and its operation
C: Description of Proposed system
and its operation
: Combine DG set cooling tower with main
cooling tower
: Main cooling tower is operating with 30% of its
capacity. The rated cooling water flow is 5000
m3/hr.Two cooling water pumps are in operation
continuously with 50% of its rated capacity. A
separate cooling tower is also operating for DG
set operation continuously.
: The DG Set cooling water flow is only 240 m3/h.
By adding this flow into the main cooling tower,
will eliminate the need for a separate cooling
tower operation for DG set, besides improving
the %loading of main cooling tower. It is
suggested to stop the DG set cooling tower
operation.
D: Energy Saving Calculations
3
Capacity of main cooling tower = 5000 m / hr
Temp across cooling tower (design) = 8 oC
Present capacity = 3000 m3/hr
Temperature across cooling = 4 oC
tower(operating)
% loading of main cooling tower = (3000 x 4)/(5000 x 8) = 30%
Capacity of DG Set cooling tower = 240 m3/hr
Temp across the tower = 5oC
Heat Load (240x1000 x 1x 5) = 1200,000 K.Cal/hr

Power drawn by the DG set

cooling tower
No of pumps and its rating
No of fans and its rating
Power consumption@ 80% load
Additional power required for main
cooling tower for additional water
flow of 240m3/h (66.67 l/s) with 6
kg/cm2
Net Energy savings
E: Cost Benefits
Annual Energy Saving Potential
Annual Cost Savings
Investment (Only cost of piping)
Simple Pay back Period
= 2 nos x 7.5 kW
= 2 Nos x 22 kW
= (22 x2 +7.5 x2) x.80 = 47 kW
= (66.67 x 6) / (102 x 0.55) = 7 kW
= 47 – 7 = 40 kW
= 40kWx 8400hr = 3,36,000 Units/Year
= 3,36,000 xRs.4.00 = Rs.13.4 Lakh per year
= Rs 1.5Lakhs
= Less than 2 months
Energy Audit Reporting Format
Energy
Audit
Reporting
Format
Worksheet for energy audit and
reporting
 Understanding energy costs
Typical summary of energy bill by a company

Conversion to common unit of energy

Benchmarking for energy
performance

• Internal Benchmarking
 Historical and trend analysis
• External Benchmarking
 Across similar industries
Scale of operation, vintage of technology,
raw material specification and quality and
product specification and quality
 Bench Marking Energy
Performance
 Quantification of fixed and variable energy
consumption trends vis-à-vis production levels
 Comparison of the industry energy
performance w.r.t. various production levels
(capacity utilization)
 Identification of best practices (based on the
external benchmarking data)
 Scope and margin available for energy
consumption and cost reduction
 Basis for monitoring and target setting
exercises
 Benchmarking parameters

•Gross production related

e.g. kWh/MT clinker or cement produced (cement plant)
e.g. kWh/MT, kCal/kg, paper produced (Paper plant)
e.g. kCal/kWh Power produced (Heat rate of a power plant)
e.g. Million kilocals/MT Urea or Ammonia (Fertilizer plant)

•Equipment / utility related

e.g. kWh/ton of refrigeration (on Air conditioning plant)
e.g. % thermal efficiency of a boiler plant
e.g. kWh/NM3 of compressed air generated
e.g. kWh /litre in a diesel power generation plant. 
 Maximizing system efficiency

 Eliminate steam leakages by trap

improvements
 Maximise condensate recovery
 Adopt combustion controls for maximizing
combustion efficiency
 Replace pumps, fans, air compressors,
refrigeration compressors, boilers, furnaces,
heaters and other energy conservation
equipment, wherever significant energy
efficiency margins exist
 Optimising Input Energy
Requirement

 Shuffling of compressors to match

needs.
 Periodic review of insulation thickness
 Identify potential for heat exchanger
networking and process integration.
 Optimisation of transformer operation
with respect to load
 Fuel and Energy
Substitution
Fuel substitution
 Natural gas is increasingly the fuel of choice as
fuel and feedstock in the fertilizer, petrochemicals,
power and sponge iron industries.
 Replacement of coal by coconut shells, rice
husk,etc
 Replacement of LDO by LSHS

Energy substitution
 Replacement of electric heaters by steam heaters
 Replacement of steam based hot water by solar
systems
 Electrical Measuring Instruments:
These are instruments for measuring
major electrical parameters such as kVA,
kW, PF, Hertz, kvar, Amps and Volts. In
addition some of these instruments also
measure harmonics.

These instruments are applied on-line i.e

on running motors without any need to
stop the motor. Instant measurements
can be taken with hand-held meters,
while more advanced ones facilitates

Energy Audit
cumulative readings with print outs at
specified intervals.

Instruments Combustion analyzer:

This instrument has in-built chemical
cells which measure various gases such
as CO2, CO, NOX, SOX etc

Fuel Efficiency Monitor:

This measures Oxygen and temperature
of the flue gas. Calorific values of
common fuels are fed into the
microprocessor which calculates the
combustion efficiency.

Fyrite:

A hand bellow pump draws the flue gas

sample into the solution inside the fyrite.
A chemical reaction changes the liquid
volume revealing the amount of gas.
Percentage Oxygen or CO2 can be read
from the scale.

Contact thermometer:
Contact thermometer:

These are thermocouples which measures

for example flue gas, hot air, hot water
temperatures by insertion of probe into
the stream.

For surface temperature a leaf type probe

is used with the same instrument.

Infrared Pyrometer: Energy Audit

This is a non-contact type measurement
which when directed at a heat source Instruments
directly gives the temperature read out.
Can be useful for measuring hot jobs in
furnaces, surface temperatures etc.

Pitot Tube and manometer:

Air velocity in ducts can be measured

using a pitot tube and inclined manometer
for further calculation of flows.

Ultrasonic flow meter:

This a non contact flow measuring device

using Doppler effect principle. There is a
transmitter and receiver which are
positioned on opposite sides of the pipe.
The meter directly gives the flow. Water
and other fluid flows can be easily
measured with this meter.
 Speed Measurements:

In any audit exercise speed measurements

are critical as thay may change with
frequency, belt slip and loading.

A simple tachometer is a contact type

instrument which can be used where
direct access is possible.

More sophisticated and safer ones are

non contact instruments such as
stroboscopes.

Energy Audit Tachometer Stroboscope

Instruments Leak Detectors:

Ultrasonic instruments are available

which can be used to detect leaks of
compressed air and other gases which are
normally not possible with human
abilities.

Lux meters:

Illumination levels are measured with a

lux meter. It consists of a photo cell
which senses the light output, converts to
electrical impulses which are calibrated
as lux.
End