Unit – 2: Energy Management & Audit

Definition of Energy Audit:

Energy Audit is the key to a systematic approach for decision-making in the area of
energy management. It attempts to balance the total energy inputs with its use, and serves to
identify all the energy streams in a facility. It quantifies energy usage according to its discrete
functions. Industrial energy audit is an effective tool in defining and pursuing comprehensive
energy management programme.

As per the 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 of Energy Audit:

In any industry, the three top operating expenses are often found to be energy (both electrical
and thermal), labor and materials. If one were to relate to the manageability of the cost or
potential cost savings in each of the above components, energy would invariably emerge as a
top ranker, and thus energy management function constitutes a strategic area for cost
reduction.

Energy Audit will help to understand more about the ways energy and fuel are used in
any industry, and help in identifying the areas where waste can occur and where scope for
improvement exists.

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, decide on appropriate energy
mix, identify energy conservation technologies, retrofit for energy conservation equipment
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 costs. Energy Audit provides a
“bench-mark" (Reference point) for managing energy in the organization and also provides
the basis for planning a more effective use of energy throughout the organization.

Material prepared by G. Satya Prasad, Department of EE&EEE, GIET University 15

Types of energy audit:

The types of Energy Audit to be performed depend 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 two types.
1. Preliminary Audit
2. Detailed Audit

1. Preliminary Energy Audit Methodology

Preliminary energy audit is a relatively quick exercise to:
 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
 Set a reference point
 Identify areas for more detailed study/measurement
 Preliminary energy audit uses existing, or easily obtained data

2. Detailed Energy Audit Methodology

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 savings and cost. It considers
the interactive effects of all projects, accounts for the energy use of all major equipment, and
includes detailed energy cost saving calculations 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
calculations of energy use. This estimated use is then compared to utility bill charges.
Detailed energy auditing is carried out in three phases: Phase I, II and III.

Phase I - Pre-Audit Phase

Phase II - Audit Phase
Phase III - Post Audit Phase

A Guide for Conducting Energy Audit at a Glance

Industry-to-industry, the methodology of Energy Audits needs to be flexible.
A comprehensive ten-step methodology for conduct of Energy Audit at field level is
presented below. Energy Manager and Energy Auditor may follow these steps to start with
and add/change as per their needs and industry types.

DATA COLLECTION HINTS

It is important to plan additional data gathering carefully. Here are some basic tips to avoid
wasting time and effort:
• measurement systems should be easy to use and provide the information to the
accuracy that is needed, not the accuracy that is technically possible
• measurement equipment can be inexpensive (flow rates using a bucket and stopwatch)

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 • the quality of the data must be such that the correct conclusions are drawn (what
grade of product is on, is the production normal etc)
• define how frequent data collection should be to account for process variations.
• measurement exercises over abnormal workload periods (such as startup and
shutdowns)
• design values can be taken where measurements are difficult (cooling water through
heat exchanger)
DO NOT ESTIMATE WHEN YOU CAN CALCULATE
DO NOT CALCULATE WHEN YOU CAN MEASURE

Ten Steps Methodology for Detailed Energy Audit:

Step Plan of action Purpose / results

No
Phase I - Pre-Audit Phase
Step 1 Plan and organize Resource planning, Establishment/Organize a
Walk through audit Energy audit team
Informal interview with Organize instruments & time frame
Energy manager, Micro data collection (Suitable to type of industry)
Production/Plant Familiarization of process/plant activities
manager First hand observation & assessment of current level
operation and practices
Step 2 Conduct of Building up cooperation
meeting/awareness Issue questionnaire for each department
programme with all Orientation, awareness creation
divisional heads and
persons concerned (2-3
hrs.)
Phase II - Audit Phase
Step 3 Primary data gathering, Historic data analysis, Baseline data collection
process flow diagram & Prepare process flow charts
Energy utility diagram 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 Trails. Experiments:
trails/experiments for - 24 hours power monitoring (MD, PF, kWh etc.,)
selected energy - Load variations trends in pumps, fan compressors
consumers etc.,

Step 6 Analysis of energy use Energy and material balance & Energy loss/waste
analysis
Step 7 Identification and Identification & Consolidation ENCON measures

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 development of Energy Conceive, develop, and refine ideas
Conservation (ENCON) Review the previous ideas suggested by unit
opportunities 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 Asses technical feasibility, economic viability and
prioritization of ENCON options for implementation
Select most promising projects
Priorities by low, medium, long term measures
Step 9 Reporting & Presentation Documentation, report presentation to the top
to top management management
Phase III - Post Audit Phase
Step 10 Implementation and Assist and implementation on ENCON
follow-up recommendation measures and monitor the
performance
Action plan, schedule for implementation
Follow-up and periodic review

Energy management (audit) approach:

Understanding energy costs:
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 base-line
for future reference
• Energy invoices may indicate the potential for savings when related to production
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. Few are listed below:
• Fuel oil
• Low Sulphur Heavy Stock (LSHS)
• Light Diesel Oil (LDO)
• Liquefied Petroleum Gas (LPG)
• COAL
• LIGNITE
• WOOD ETC.
Understanding fuel cost is fairly simple and it is purchased in Tons or Kiloliters. Availability,
cost and quality are the main three factors that should be considered while purchasing. The
following factors should be taken into account during procurement of fuels for energy
efficiency and economics.
• Price at source, transport charge, type of transport
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 • 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
• (i.e. How fast the electricity is used?)
• Energy Charges, kWh
(i.e., How much electricity is consumed?)
• TOD Charges, Peak/Non-peak period [ TOD means Time of Day ]
(i.e. When electricity is utilized?)
• Power factor Charge, P.F
(i.e., Real power use versus Apparent power use 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

Bench marking and Energy performance:

Benchmarking of energy consumption internally (historical / trend analysis) and externally
(across similar industries) are two powerful tools for performance assessment and logical
evolution of avenues for improvement. Historical data well documented helps to bring out
energy consumption and cost trends month-wise / day-wise. Trend analysis of energy
consumption, cost, relevant production features, specific energy consumption, help to
understand effects of capacity utilization on energy use efficiency and costs on a broader
scale.
External benchmarking relates to inter-unit comparison across a group of similar units.
However, it would be important to ascertain similarities, as otherwise findings can be grossly
misleading. Few comparative factors, which need to be looked into while benchmarking
externally are:
• Scale of operation
• Vintage of technology
• Raw material specifications and quality
• Product specifications and quality
Benchmarking energy performance permits
• Quantification of fixed and variable energy consumption trends vis-à-vis production
levels
• Comparison of the industry energy performance with respect to 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.
The benchmark parameters can be:
• Gross production related
e.g. kWh/MT clinker or cement produced (cement plant)
e.g. kWh/kg yarn produced (Textile unit)
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 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)
e.g. kWh/MT of liquid metal output (in a foundry)
Equipment / utility related
e.g. kW/ton of refrigeration (on Air conditioning plant)
e.g. % thermal efficiency of a boiler plant
e.g. % cooling tower effectiveness in a cooling tower
e.g. kWh/NM3 of compressed air generated
e.g. kWh /litre in a diesel power generation plant.

Matching energy use to requirement:

Mismatch between equipment capacity and user requirement often leads to inefficiencies due
to part load operations, wastages etc. Worst case design, is a designer's characteristic, while
optimization is the energy manager's mandate and many situations present themselves
towards an exercise involving graceful matching of energy equipment capacity to end-use
needs. Some
examples being:
• Eliminate throttling of a pump by impeller trimming, resizing pump, installing
variable speed drives
• Eliminate damper operations in fans by impeller trimming, installing variable speed
drives, pulley diameter modification for belt drives, fan resizing for better efficiency.
• Moderation of chilled water temperature for process chilling needs
• Recovery of energy lost in control valve pressure drops by back pressure/turbine
adoption
• Adoption of task lighting in place of less effective area lighting

Maximizing system efficiencies:

Once the energy usage and sources are matched properly, the next step is to operate the
equipment efficiently through best practices in operation and maintenance as well as
judicious technology adoption. Some illustrations in this context are:
• 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 consuming equipment, wherever significant energy
efficiency margins exist.

Optimizing the input energy requirements:

Consequent upon fine-tuning the energy use practices, attention is accorded to considerations
for minimizing energy input requirements. The range of measures could include:
• 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 & energy substitution:

Fuel substitution: Substituting existing fossil fuel with more efficient and less cost/less
polluting fuel such as natural gas, biogas and locally available agro-residues.
Energy is an important input in the production. There are two ways to reduce energy
dependency; energy conservation and substitution.
Material prepared by G. Satya Prasad, Department of EE&EEE, GIET University 20
Fuel substitution has taken place in all the major sectors of the Indian economy. Kerosene
and Liquefied Petroleum Gas (LPG) have substituted soft coke in residential use.
Few examples of fuel substitution
• Natural gas is increasingly the fuel of choice as fuel and feedstock in the fertilizer,
petro
• chemicals, power and sponge iron industries.
• Replacement of coal by coconut shells, rice husk etc.
• Replacement of LDO by LSHS
Few examples of energy substitution
• Replacement of electric heaters by steam heaters
• Replacement of steam based hot water by solar systems
A textile process industry replaced old fuel oil fired thermic fluid heater with agro fuel fired
heater.
Energy audit instruments:
The requirement for an energy audit such as identification and quantification of energy
necessitates measurements; these measurements require the use of instruments. These
instruments must be portable, durable, easy to operate and relatively inexpensive. The
parameters generally monitored during energy audit may include the following:
Basic Electrical Parameters in AC &DC systems - Voltage (V), Current (I), Power factor,
Active power (kW), apparent power (demand) (kVA), Reactive power (kVAr), Energy
consumption (kWh), Frequency (Hz), Harmonics, etc.
Parameters of importance other than electrical such as temperature & heat flow, radiation, air
and gas flow, liquid flow, revolutions per minute (RPM), air velocity, noise and vibration,
dust
concentration, Total Dissolved Solids (TDS), pH, moisture content, relative humidity, flue
gas
analysis - CO2, O2, CO, SOx, NOx, combustion efficiency etc.
Combustion analyser: This instrument has in-built chemical cells which measures various
gases such as O2, CO, NOx, and SOx.
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 of
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. A separate fyrite
can be used for O2 and CO2 measurement.
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 Thermometer: This is a non-contact type measurement which when directed at a heat
source directly gives the temperature read out. This instrument is useful for measuring hot
spots in furnaces, surface temperature etc.,
Leak Detectors: Ultrasonic instruments are available which can be used to detect leaks of
compresses air and other gases which are normally not possible to detect 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.

Material and Energy balance:

Material quantities, as they pass through processing operations, can be described by material
balances. Such balances are statements on the conservation of mass. Similarly, energy

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quantities can be described by energy balances, which are statements on the conservation of
energy.
If there is no accumulation, what goes into a process must come out. This is true for batch
operation.
It is equally true for continuous operation over any chosen time interval. Material and energy
balances are very important in an industry. Material balances are fundamental to the control
of processing, particularly in the control of yields of the products. The first material balances
are determined in the exploratory stages of a new process, improved during pilot plant
experiments when the process is being planned and tested, checked out when the plant is
commissioned and then refined and maintained as a control instrument as production
continues. When any changes occur in the process, the material balances need to be
determined again.
The increasing cost of energy has caused the industries to examine means of reducing energy
consumption in processing. Energy balances are used in the examination of the various stages
of a process, over the whole process and even extending over the total production system
from the raw material to the finished product.
Material and energy balances can be simple, at times they can be very complicated, but the
basic approach is general. Experience in working with the simpler systems such as individual
unit operations will develop the facility to extend the methods to the more complicated
situations, which do arise. The increasing availability of computers has meant that very
complex mass and energy balances can be set up and manipulated quite readily and therefore
used in everyday process management to maximise product yields and minimise costs.
The law of conservation of mass leads to what is called a mass or a material balance.
Mass In = Mass Out + Mass Stored
Raw Materials = Products + Wastes + Stored Materials.

Facility as an energy balance system:

There are various energy systems/utility services provides the required type of secondary
energy such as steam, compressed air, chilled water etc to the production facility in the
manufacturing plant. A typical plant energy system is shown in Figure. Although various
forms of energy such as coal, oil, electricity etc enters the facility and does its work or
heating, the outgoing energy is usually in the form of low temperature heat.

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The energy usage in the overall plant can be split up into various forms such as:
 Electrical energy, which is usually purchased as HT and converted into LT supply for
end use.
• Some plants generate their own electricity using DG sets or captive power plants.
• Fuels such as furnace oil, coal are purchased and then converted into steam or
electricity.
• Boiler generates steam for heating and drying demand
• Cooling tower and cooling water supply system for cooling demand
• Air compressors and compressed air supply system for compressed air needs
• All energy/utility system can be classified into three areas like generation, distribution
and utilisation for the system approach and energy analysis.
Methods for preparing Process flow:

The identification and drawing up a unit operation/process is prerequisite for energy and
material balance. The procedure for drawing up the process flow diagrams is explained
below.
Flow charts are schematic representation of the production process, involving various input
resources, conversion steps and output and recycle streams. The process flow may be
constructed stepwise i.e. by identifying the inputs / output /wastes at each stage of the
process, as shown in the Figure.

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Inputs of the process could include raw materials, water, steam, energy (electricity, etc);
Process Steps should be sequentially drawn from raw material to finished product.
Intermediates and any other by-product should also be represented. The operating process
parameters such as temperature, pressure, % concentration, etc. should be represented. The
flow rate of various streams should also be represented in appropriate units like m 3/h or kg/h.
In case of batch process the total cycle time should be included.
Wastes / by products could include solids, water, chemicals, energy etc. For each process
steps (unit operation) as well as for an entire plant, energy and mass balance diagram should
be drawn.
Output of the process is the final product produced in the plant.

Material and energy balance diagrams:

Energy takes many forms, such as heat, kinetic energy, chemical energy, potential energy but
because of interconversions it is not always easy to isolate separate constituents of energy
balances.
However, under some circumstances certain aspects predominate. In many heat balances in
which other forms of energy are insignificant; in some chemical situations mechanical energy
is insignificant and in some mechanical energy situations, as in the flow of fluids in pipes, the
frictional losses appear as heat but the details of the heating need not be considered. We are
seldom concerned with internal energies.
Therefore, practical applications of energy balances tend to focus on particular dominant
aspects and so a heat balance, for example, can be a useful description of important cost and
quality aspects of process situation. When unfamiliar with the relative magnitudes of the
various forms of energy entering into a particular processing situation, it is wise to put them
all down. Then after some preliminary calculations, the important ones emerge and other
minor ones can be lumped together or even ignored without introducing substantial errors.
With experience, the obviously minor ones can perhaps be left out completely though this
always raises the possibility of error.
Energy balances can be calculated on the basis of external energy used per kilogram of
product, or raw material processed, or on dry solids or some key component. The energy
consumed in food production includes direct energy which is fuel and electricity used on the
farm, and in transport and in factories, and in storage, selling, etc.; and indirect energy which
is used to actually build the machines, to make the packaging, to produce the electricity and

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the oil and so on. Food itself is a major energy source, and energy balances can be
determined for animal
or human feeding; food energy input can be balanced against outputs in heat and mechanical
energy and chemical synthesis.
In the SI system there is only one energy unit, the joule. However, kilocalories are still used
by some nutritionists and British thermal units (Btu) in some heat-balance work.
The two applications used in this chapter are heat balances, which are the basis for heat
transfer, and the energy balances used in analysing fluid flow.
Heat Balances:
The most common important energy form is heat energy and the conservation of this can be
illustrated by considering operations such as heating and drying. In these, enthalpy (total
heat)
is conserved and as with the mass balances so enthalpy balances can be written round the
various items of equipment. or process stages, or round the whole plant, and it is assumed
that no appreciable heat is converted to other forms of energy such as work.

Unit 2: Energy Management & Audit

Multiple Choice Questions

1. Which of the following could be a better index of Building Energy Performance?

A) solar Heat Gain factor by wall and roof
B) ratio of air-conditioned to total carpet area
C) kWh per unit area of the building per year (kWh /Sq. meter/year)
D) Ratio of Captive generation to grid power consumed
2. The rate of energy transfer is measured in
A) Watts B) kCal/hr C) BTU/hr D) all of the above
3. Nameplate kW or HP rating of a motor indicates
A) input kW to the motor B) output kW of the motor
C) minimum input kW to the motor D) maximum input kW to the motor
4. Matching energy usage to requirement means providing
A) just theoretical energy needed B) just the design needs
C) energy with minimum losses D) less than what is needed
5. Which of the following will not motivate employees to conserve energy?
A) training B) awareness C) enforcing targets D) incentives
6. Which of the following best defines the role of an energy manager?

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 A. energy auditor and in charge of the finance department of the plant
B. Intermediate player between top management, energy and cost centers of the
plant
C. In charge of the captive power plant and mediator between plant and Electricity boards
D. Mediator between production manager and project manager

7. Which of these is not a duty of an energy manager

A. Report to BEE
B. Provide support to accredited energy auditing firm
C. Prepare a scheme for efficient use of energy
D. Sign an energy policy

8. TOD tariff means

A. Time of Day Tariff B. Total off demand tariff
C. Time of Demand tariff D. Total on demand tariff

9. Which is the benchmark parameter for Air conditioning plant ?

A. kW/ton B. kWh/kg C. kCal/kWh D. kWh/MT

10. Illumination lelves are measured with

A. Anemometer B. Lux meters C. Contact meters D. Thermometers

11. Material balance equation indicates

A. Raw Materials = Products + Wastes + Stored Materials.
B. Raw Materials = Products - Wastes - Stored Materials.
C. Raw Materials = Products - Wastes
D. Raw Materials = Products - Stored Materials.

12. Captive power plants defined as

A. Getting power supply from utilities B. Generating their own power
C. Either A or B D. None

SHORT ANSWER QUESTIONS:

1. Define Energy audit

2. What is the need for Energy audit?
3. What are the types of Energy audit?
4. Explain about fuel costs
5. Describe about benchmarking
6. what is the role of fuel substitution in energy performance
7. What is the use of Combustion analyser?
8. Explain about Fuel efficiency monitor
9. What is the use of Fyrite?
10. Describe the use of Contact thermometer, Infrared Thermometer, Leak Detectors, Lux
meters:
11. Write the equation of energy balance equation
12. Draw the line diagram of Material and energy balance.

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LONG ANSWER QUESTIONS:
1. What is energy audit and explain about its need?
2. Explain about different types and phases of Energy audit
3. Which factors will influence the energy and fuel costs?
4. How benchmarking and energy performance will influence each other?
5. Write short note on
a. Material and Energy balance b. Facility as an energy balance system
6. Explain the methods for preparing Process flow in any industry
7. Write short note on material and energy balance diagrams.
8. Explain the importance of energy audit instruments role in Energy Auditing
9. Explain the process of Detailed Energy Audit
10. What decisions influence the energy audit process

Material prepared by G. Satya Prasad, Department of EE&EEE, GIET University 27