ENERGY CONSERVATION IN

INDUSTRIES

UNIT-I
INTRODUCTION
Energy - Power – Past & Present scenario of World;
National Energy consumption Data – Environmental
aspects associated with energy utilization –Energy
Auditing: Need, Types, Methodology and Barriers.
Role of Energy Managers. Instruments for energy
auditing

1
INTRODUCTION
 India is the fifth largest consumer of energy accounting
3.4% of global energy consumption.
 Rich in coal and renewable energy.

 Very small hydrocarbon reserve- 0.4%.

 25% of primary energy needs is met by imports.

 Per capital consumption of energy is low.

 Energy intensity is one among the highest.

 Commercial energy consumption is only 50%.

2
MAIN ENERGY SOURCES

 Coal
 Oil

 Natural gas

 Nuclear power

 Hydro power

 Other renewable sources( like wind, biomass, solar

power, geothermal power, tidal etc.)

3
4
ENERGY SCENARIO

❑ Coal:
• Dominates the energy mix.
• Contributes to 55% of primary energy production &
53% of energy consumption.
• India fourth largest producer.
• 70% total domestic electricity & 50% commercial
energy demand is met.
• 8.6% of world reserves ie. about 84396 million tonne &
last for next 235 years
• Lignite is also used
• Dominant fuel when energy demand increases in
future

5
❑ Oil:
• Accounts for 36% of total energy consumption and
34% total energy production.
• India is one among top ten consumer in the world
• 0.3% world’s reserves
• 70% of demand is met by imports i.e 1.2 million
barrel per day.
• Consumption of petrol in transport sector-53%,
domestic-18%, industries-17% .
• Total installed capacity of Diesel based power plants
in India is 1,199.75 MW.
• 20-17% decline in share in primary energy
production

6
❑ Natural gas:
• Accounts for 8% of energy consumption & 9% of
energy production.
• The total installed capacity of gas based power
plants in India is 17,353.85 MW about 10% of total
installed capacity.
• A demand of 200mcmd against availability of
103.08mcmd.
• 10% – 13% increase in share of natural gas in
primary energy production.

7
❑ Electrical energy
• Out of total production
65.8% comes from thermal power plant,
26.3% from hydro electricity,
3.1% from nuclear power & rest renewable sources
• Gross generation of energy is 531 billion units.
Overall electrification rate is 64.5%.
• Power generation assets are not evenly spread.
• 52.5% of rural households have access to
electricity while in urban areas it is 93.1% .
• Electricity demand outstripped supply by
7-11%. Plans 8-10% growth ie. 215,804MW
capacity

8
❑ Nuclear power
• Fourth largest source of electricity.
• Contributes to 2.5% in total energy production,
and 3.1% in electricity generation.
• Nineteen nuclear power reactors and six nuclear
power plants produce 4,560 MW(2.9% of total
installed base).
• To achieve 20000 MW generation capacity

❑ Hydro power
• Only 15% utilized
• 25% share in total generation unit with installed
capacity of 36877 MW
• It share in power generation has decreased
9
 NUCLEAR POWER PLANTS
Power station State Installed
capacity(MW)
Narora Atomic Power Station Uttar Pradesh 440
Rajasthan Atomic Power Station Rajasthan 1180
Tarapur Atomic Power Station Maharashtra 1400
Kakrapar Atomic Power Station Gujarat 440
Kudankulam Nuclear Power plant Tamil Nadu 2000
Madras Atomic Power Station Tamil Nadu 500
Kaiga Nuclear Power Plant Karnataka 880
Madras Atomic Power Station Tamil Nadu 440

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❑ Thermal power
• Accounts for 64.6% in total energy production.
• Installed capacity of Thermal Power is 1,04,424
MW which is 63.7% of total installed capacity.
• Thermal power produced from

Thermal power based on Installed capacity Total %

(MW)
Coal 86003 53
Gas 17221 10.61
Oil 1199 74

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❑ Renewable resources
• Immense potential
• Current installed base of is 16,492.42 MW which is
10.12% of total installed base.
• Second largest exploiter of wind energy(1000 MW)
& fifth largest wind power industry, with installed
capacity of 9587MW.
• Tamil Nadu contributing nearly a third of it
(5008.26 MW) largely through wind power.
• Utilizes 33lakh bio-gas plant, 2 lakh solar cooker &
street lighting system using photo voltaic
technology.
• Targets 14000MW generation capacity in future.

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WORLD ENERGY SCENARIO

Energy production Energy consumption

13
 World primary energy demand increase by 1.6%
per year on an average.
 Oil is the most important and abundant source of
energy in the world.
 It is also the most highly consumed
 Demand of oil rise from 85 million barrel per day to
106 mb. Developed industrialized countries
consume 43 million barrels daily on an average
while developing countries consume only 22 million
barrels.
 Coal is the second most abundant source of energy
in the world and is highly used in power generation.
Coal ranks quite low in terms of consumption. Its
demand increases in certain regions.

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 Natural gas has been the energy source with highest
rates of growth in recent years. Consumption of gas
has increased from 14.4% to 15.6%.
 World electricity demand increase at a rate of 2.5%.

 Renewable sources overtaking.

 Share of non-hydro renewable in power generation

increased from 2.5% to 8.6%.
 Energy consumption in developing countries is only
one-tenth of that in the developed countries.

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OVERVIEW
(in thousand of metric tone of oil INDIA WORLD
equivalent)
Total energy production 421565 10077984
% change since 1980 90 37
Energy imports 59162 9521506
Energy exports 2376 3419104
Total energy consumption 480418 9702786
Electricity consumption 32529 1040770
Energy consumption by sector
Industry 97859 2140474
Transportation 44475 1755505
Agriculture 9741 166287
Commercial & public service 2737 511555
Residential 200781 1845475
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CONT….

Energy consumption by source

Coal & coal product 157169 2278524
Oil 79557 3563084
Natural gas 20754 2012559
Nuclear 3409 661901
Hydro electric 7004 222223
Solid biomass 198018 1035139
Bio gas & liquid biomass 14931
Geo thermal 43802
Solar 2217
Wind 89.2 1748
Tide 53

17
ENERGY STRATEGIES FOR A SUSTAINABLE
WORLD

 Necessary condition for socio-economic change to

lead to a sustainable world must include
• Satisfaction of basic needs of the peoples
• Economic viability
• Self reliant interdependence of nations
• Harmony with the environment
 Energy strategies for future can be classified as
• 1.Immediate
• 2.Mid-term
• 3.Long term

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❑ Immediate term strategy:
• Optimum utilization of existing assets.
• Efficiency in production system & reduction in
distribution losses.
• Promoting R&D, transfer and use of technologies for
environmentally sound energy systems.
• Rationalizing the tariff structure of various energy
products.

❑ Medium-term strategy:
• Demand management through conservation of energy,
structural changes in economy, model mix in
transportation sector, recycling
• A shift to less energy-intensive modes of transport
• Shift to renewable sources of energy.
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❑ Long – term strategy:
• Efficient generation of energy resources.
• Efficient production of coal.oil & natural gas.
• Reduction of natural gas flaring
• Improving energy infrastructure
• Creation of urban gas transmission and distribution
network.
• Improving energy efficiency in accordance with national,
socio-economic & environmental priorities.
• Promoting of energy efficiency & emission standards.
• Programs for adopting energy efficient technologies in
large industries.
• Deregulation and privatization of energy sector
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• Building new refineries, coal and gas fired power
stations.
• Reducing cross subsidies on oil products & electricity
tariffs.
• Investment legislation to attract foreign investments.
• Streamlining approval process for attracting private
sector participation in power generation, transmission &
distribution.

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STRATEGIES FOR ELECTRIC POWER
 Objectives
Sufficient power to achieve GDP growth rate of 8%
Reliable power
Quality power
Optimum power cost
Power for all
 Strategies
▪ Power Generation Strategy with focus on low cost
generation, controlling the input cost, Technology up
gradation and utilization of Non Conventional sources
▪ Transmission Strategy with focus on development of
National Grid including Interstate connections, Technology
upgradation & optimization of transmission cost.

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▪ Distribution strategy to achieve Distribution Reforms
with focus on System up gradation, loss reduction, theft
control, quality power supply, Decentralized distributed
generation and supply for rural areas.
▪ Regulation Strategy aimed at protecting Consumer
interests and making the sector commercially
viable.
▪ Financing Strategy to generate resources for
required growth of the power sector.
▪ Conservation Strategy to optimize the utilization of
electricity with focus on Demand Side
management, Load management and Technology
up gradation to provide energy efficient equipment /
gadgets.
▪ Communication Strategy media support to enhance
the general public awareness.

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24
Energy Audit
 Definition of Energy Audit
• As per Indian Energy Conservation Act 2001,
Energy Audit is defined as:

“the verification, monitoring and analysis of use ofenergy

including submission of technical report containing
recommendations for improving energy efficiency with
cost benefit analysis and an action plan to reduce energy
consumption “
 Why the Need for Energy
Audit
• The three top operating expenses are energy (both
electrical and thermal), labour and materials.
• Energy would emerge as a top ranker for cost
reduction
• 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
 Types of Energy Audits

1. Preliminary Energy Audit

2. Targeted Energy Audit
3. Detailed Energy Audit
 Preliminary Energy Audit

• Preliminary energy audit uses existing or easily obtained

data
• Find out the energy consumption area in the organization
• Estimates the scope for saving
• Identifies the most likely areas for attention
• Identifies immediate(no cost or low cost) improvements
• Sets a ‘reference point’
• Identifies areas for more detailed study/measurement
 Targeted Energy Audits
• Targeted energy audits are mostly based upon the
outcome of the preliminary audit results.
• They provide data and detailed analysis on specified
target projects.
• As an example, an organization may target its
lighting system or boiler system or compressed air
system with a view to bring about energy savings.
• Targeted audits therefore involve detailed surveys of
the target subjects/areas with analysis of the energy
flows and costs associated with those targets.
 Detailed Energy Audit

Detailed Energy Audit evaluates all systems and

equipment which consume energy and the audit
comprises a detailed study on energy savings and
costs.

Detailed Energy Audit is carried out in 3 phases

– The Pre-audit Phase
– The Audit Phase
– The Post-Audit Phase
 The Ten Steps for Detailed Audit
Step
PLANOFACTION PURPOSE / RESULTS
No

Phase I –Pre Audit Phase

Step 1 • Plan and organise • Resource planning,

• Walk through Audit Establish/organize a Energy audit team
• Informal Interview • Organize Instruments &time frame
with Energy Manager, • Macro Data collection (suitable to type of
Production industry.)
/ Plant Manager • 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
personsconcerned(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 • C o n d u c t o f d e t a ile d tria ls • Trials/Experiments:
/ e x p e ri m e n t s fo r se l e c t e d - 24 hours power monitoring ( MD, PF,
energy guzzlers k W h etc.).
- Lo a d variations trends in p u m p s , fan
compressors etc.
- B o i l e r / E f f i c i e n c y trials f o r ( 4 – 8
hours)
- F u r n a c e E f f i c i e n c y trials
E q u i p m ents P e r fo r m a n c e
experiments etc

S tep6 • Analysis of energy u se • E n e rg y a n d M a t e rial balance & e n e rg y

l o s s / w a s t e a n a l ys i s

Step 7 • Id e n t i f i c a t i o n a n d • Id e n t i f i c a t i o n & C o n s o l i d a t i o n E N C O N
development of Energy measures
Conservation ( E N C O N ) ▪ C o n c e i v e , d e v e l o p , a n d r e fi n e i d e a s
opportunities ▪ Re vie w the previous ideas suggested by unit
personal
▪ R e v i e w t h e p r e v i o u s i d e a s s u g g e ste d b y
e n e r g y a u d i t if a n y
▪ U s e b r a i n s t o r m i n g a n d v a l u e a n a l ysis
techniques
▪ Contact vendors fo r n e w / e fficie n t
technology
Step 8
• C o s t b e n e f i t a n a l ys i s • Assess technical fe a s i b i l i t y, economic
vi a b i l i t y a n d p r i o r i t i z a t i o n o f E N C O N
options for i m pl e m entat i on
• Select the m o st promising projects
• P rioritise b y l o w , m e d i u m , l o n g t e rm
measures

S tep9 • Reporting & Presentation to Documentation, Report Presentation to the top

the T o p Ma na ge me nt 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
Questions which an Energy Auditor
should ask
• What function does this system serve?
• How does this system serve its function?
• What is the energy consumption of this system?
• What are the indications that this system is working
properly ?
• If this system is not working, how can it be restored
to good working conditions/
• How can the energy cost of this system be reduced?
 DETAILED ENERGY AUDIT
A TYPICAL INDUSTRIAL FORMAT OF REPORT
Energy Audit Team
Executive Summary –Scope & Purpose

Energy Audit Options & Recommendations

1. Introduction about the plant
2. General Plant details and descriptions
3. Component of production cost (Raw materials, energy, chemicals, manpower,
overhead, others)
4. Major Energy use and Areas
5. Production Process Description
6. Brief description of manufacturing process
7. Process flow diagram and Major Unit operations
8. Major Raw material Inputs, Quantity and Costs
9. Energy and Utility System Description
10. List of Utilities
11. Brief Description of each utility
1. Electricity
2. Steam
3. Water
4. Compressed air
5. Chilled water
6. Cooling water
1. Detailed Process flow diagram and Energy& Material balance
2. Flow chart showing flow rate, temperature, pressures of all
input-
Output streams
4Water balance for entire industry
1. Energy efficiency in utility and process systems
2. Specific Energy consumption
3. Boiler efficiency assessment
4. Thermic Fluid Heater performance assessments
5. Furnace efficiency Analysis
6. Cooling water system performance assessment
7. DG set performance assessment
8. Refrigeration system performance
9. Compressed air system performance
10. Electric motor load analysis
11. Lighting system
12. Energy Conservation Options & Recommendations
13. List of options in terms of no cost, low cost, medium cost and high
cost, annual energy savings and payback
2. Implementation plan for energy saving measures/Projects

ANNEXURE
Al. List of instruments
A2. List of Vendors and Other Technical details
Energy Audit Instruments
POWER ANALYSERS
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 cumulative readings with print outs at
specified intervals.
FLUE GAS ANALYSERS
Combustion analyzer:
This instrument has in-built chemical cells
which measure various gases such as CO 2 ,
CO, NO X , SO X 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 CO 2 can be read
from the scale.
TEMPERATURE MEASURMENTS
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:

This is a non-contact type measurement which when

directed at a heat source directly gives the
temperature read out. Can be useful for measuring hot
jobs in furnaces, surface temperatures etc.
FLOW MEASURMENTS – AIR ,WATER
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.
Tachometer Stroboscope

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.
 Identification of Energy Conservation
Factors & Areas

Steps for conserving energy can be taken if we

know the correct factors and areas to be studied
and also details of fuels used.
These can be:
• Energy generation
• Energy distribution
• Energy usage by processes
• Fuel substitution
 Technical and Economic
feasibility- Factors
Technology availability, space, skilled manpower, reliability,
service,Impact of measure on safety, quality, production or
process.Maintenance requirements and spares availability
Sample Worksheet for Economic Feasibility
Name of Energy Efficiency Measure
i. Investment 2. Annual operating costs 3. Annual savings
a. Equipments • Cost of capital • Thermal Energy
b. Civil works • Maintenance • Electrical Energy
c. Instrumentati • Manpower • Raw material
on • Energy • Waste disposal
d. Auxiliaries • Depreciation
Net Savings /Year (Rs./year) Payback period in months
= (Annual savings-annual operating costs) = (Investment/net savings/year) x 12
 Energy Costs in Indian
Scenario ?
Common Fuels Power Costs
• Fuel oil,• Low Sulphur In India Electricity costs vary
substantially not only from State to
Heavy Stock (LSHS),• Light
State, but also from city to city and
Diesel Oil (LDO),• Liquefied also within consumer
Petroleum Gas (LPG) to consumer – though power
• Coal,• Lignite,• Wood does the same work everywhere.

Reason:
Fuels Cost Inputs & Factors • Tariff Structure
• Price at source, transport
charge, type of transport,
• Quality of fuel
• Contaminations, Moisture,
Energy content (GCV)
Energy conservation measures
 Understanding energy costs
An industrial energy bill summary

ENERGY BILL EXAMPLE

Type of energy Original units Unit Cost Monthly Bill (Rs)
Electricity 5,00,000 kWh Rs.4.00/kWh 20,00,000
Fuel oil 200,kL Rs.11,000 KL 22,00,000
Coal 1000 tons Rs.2,200/ton 22,00,000
Total 64,00,000

Conversion to common unit of energy

Electricity (1 kWh) = 860 kcal/kWh (0.0036 GJ)

Heavy fuel oil (calorific value, GCV) =10.000 kcal/litre ( 0.0411 GJ/litre)
Coal (calorific value, GCV) =4000 kcal/kg ( 28 GJ/ton)
 Benchmarking
• Benchmarking can be a useful tool for understanding
energy consumption patterns in the industrial sector
and also to take requisite measures for improving
energy efficiency.

• FACTORS INVOLVED:
– Scale of operation
– use of technology
– Raw material specifications and quality
– Product specifications and quality
 Benchmarking for Energy
Performance
• Internal Benchmarking
− Historical and trend analysis
• External Benchmarking
− Across similar industries
Scale of operation, use 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
Production or Equipment Related

•Gross production related

e.g. kWh/MT clinker or cement produced (Cement plant)

e.g. kWh/MT, kCal/kg, paper produced (Paper plant)

•Equipment / utility related

e.g. kWh/ton of refrigeration (on Air conditioning plant)

e.g. kWh /litre in a diesel power generation plant.
 Measuring Energy Performance
Production Factor = Current year’s production
Reference year’s production

• Reference Year Equivalent Energy Use

• The reference year’s equivalent energy use (or reference year equivalent) is the energy
that would have been used to produce thecurrent year’s production output.
• The reference year equivalent is obtained by multiplying the reference year energy use by the
production factor (obtained above)
• Reference year equivalent = Reference year energy use x Production factor
• Plant Energy Performance is the improvement or deterioration from the reference year.
It is a measure of plant’s energyprogress.

• Plant energy performance = Reference year equivalent – Current year’s energy x 100
Reference year equivalent
 Maximizing System
Efficiencies
- Some Measures
• Replace pumps, fans, air compressors, refrigeration
compressors, boilers, furnaces, heaters and other
energy conservation equipment, wherever significant
energy efficiency margins exist
• Eliminate steam leakages by trap improvements
• Maximize condensate recovery
• Adopt combustion controls for maximizing
combustion efficiency
 Matching Energy Usage to
Requirement
• The mismatch between equipment capacity and user
requirement often leads to inefficiencies due to part
load operations, wastages etc. It is thus essential that
proper energy matching studies are carried out & actions
implemented.
Examples :
Eliminate throttling
Eliminate damper operations
Fan resizing for better efficiency.
Moderation of chilled water temperature for process chilling
needs
 Optimising Energy Input
Requirement
In order to ensure that the energy given to the system is
being put to optimal use, site specific measures and
checks should be carried out regularly.

EXAMPLES:

Shuffling of compressors to match needs.

Periodic review of insulation thickness

Identify potential for heat exchanger networking and process

integration.
 Identification of energy
conservation opportunities
Fuel substitution
• 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
Energy Generation
• Captive power plant
• Steam generation
Energy usage by processes
• Analyze which process gets high energy consumption
 Energy monitoring & targeting
Importance
An effective monitoring & implementing system with adequate
technical ability for analyzing energy saving options is key to
ENERGY MANAGEMENT
Energy monitoring and targeting is primarily a
management technique that uses energy
information as a basis to eliminate waste,
reduce and control current level of energy use
and improve the existing operating

procedures .
These techniques covers all plant and building
utilities such as fuel, steam, refrigeration,
compressed air, water, effluent, and electricity
are managed as controllable resources in the
same way that raw materials, finished product
inventory, building occupancy, personnel and
capital are managed.----It Becomes the
“Energy Cost Centers.”
 Elements of Monitoring & Targeting
System
• Recording - Measuring and recording energy consumption

• • Analyzing - Correlating energy consumption to a measured output, such as production quantity

• • Comparing -Comparing energy consumption to an appropriate standard benchmark

• • Setting Targets -Setting targets to reduce or control energy consumption

• • Monitoring - Comparing energy consumption to the set target on a regular basis

• • Reporting -Reporting the results including any variances from the targets which have been set

• • Controlling - Implementing management measures to correct any variances, which may have been occurred.

• Particularly M&T system will involve the following:

• Checking the accuracy of energy invoices

• Allocating energy costs to specific departments (Energy Accounting Centres)

• Determining energy performance/efficiency

• Recording energy use, so that projects intended to improve energy efficiency can bechecked

* Highlighting performance problems in equipment or systems

 Data and Information Analysis
• Plant level information can be derived from financial accounting systems-utilities cost centre
• Plant department level information can be found in comparative energy consumption data for
a group of similar facilities, service entrance meter readings etc.
• System level (for example, boiler plant) performance data can be determined from sub
metering data
• Equipment level information can be obtained from nameplate data, run-time and schedule
information, sub-metered data on specific energy consuming equipment
 Relating Energy Consumption and Production
• After collection of energy consumption, energy cost and production data, the next stage
of the monitoring process is to study and analyze the data and represent it for day to day
controls—so represent it graphically
Specific Energy
Consumption(SEC)
is energy
consumption per
unit of production
 CUSUM -Cumulative Sum

• Cumulative Sum (CUSUM) represents the difference between the base line and
the actual consumption points over the base line period of time.
• This useful technique not only provides a trend line, it also calculates
savings/losses to date and shows when the performance changes.
 CUSUM
CUSUM analysis
Technique
1 Plot the Energy - Production graph for the first 9 months 4-Analysis-TABLE
2. Draw the best fit straight line
3. Derive the equation of the line, y=mx+c
4.Calculate the expected energy consumption based on the
equation
5.Calculate the difference between actual and calculated
energy use
6. Compute CUSUM
7. Plot the CUSUM graph
8.Estimate the savings accumulated from use of the heat recovery
system

1-Given
2-plot graph
3-fit equation
Case Study
The CUSUM Technique

Energy consumption and

production data were collected
for a plant over a period of 18
months.
During month 9, a heat
recovery system was installed.
Using the plant monthly data,
estimate
the savings made with the heat
recovery system. The plant
data is given in Table 8.3:

* toe = tonnes of oil equivalent.

Based on the graph 8.10
(see Table 8.4), savings of
44 toe
(50-6) have been
accumulated in the last 7
months. This represents
savings of almost 2% of
energy consumption.
5-CUSUM -Analysis
The Sankey Diagram and its Use The Sankey diagram is very useful
tool to represent an entire input and output energy flow in any energy
equipment or system such as boiler, fired heaters, furnaces after
carrying out energy balance calculation. This diagram represents
visually various outputs and losses so that energy managers can focus
on finding improvements in a prioritized manner.

Example: The Figure 4.2

shows a Sankey diagram
for a reheating furnace.
From the Figure 4.2, it is
clear that exhaust flue gas
losses are a key area for
priority attention.
 Least Square Method
•We know, equation of slope,
Y=mx+c
Where,
“y” is dependentvariable(i.e energy
consumption)
“x” is independent variable(i.e
production )
“c” is the value at which the straight
line curve intersect the “y” axis.
“m” is the gradient of straight line
curve.

Therefore,
Energy consumed for the period=C+m*production for the same
period.
• Consider the sample points,
(X1,y1).(x2,y2)……(xn,yn)
Therefore,
Equation of straight lines are,
1. cn+m∑x=∑y
2. c∑x+m∑X2= ∑xy….(on the basis of production
i.e independent variable)
n= no. of data points
These equations are known as normal equations
of the problems and they can be used to
establish the value of “c” and “m”.
 Example

Answer
2.1 Electricity Billing - HT Supply

The electricity billing by utilities for medium & large enterprises, in High Tension (HT)
category, is often done on two-part tariff structure, i.e. one part for capacity (or demand) drawn
and the second part for actual energy drawn during the billing cycle. Capacity or demand is in
kVA (apparent power) or kW terms. The reactive energy (i.e.) kVArh drawn by the service is
also recorded and billed for in some utilities, because this would affect the load on the utility.
Accordingly, utility charges for maximum demand, active energy and reactive power
drawn (as reflected by the power factor) in its billing structure. In addition, other fixed and
variable expenses are also levied.

2.2 The Tariff Structure of HT Electricity Billing

The tariff structure of HT supply generally includes the following components:

a) Maximum demand Charges

These charges relate to maximum demand registered during month/billing period and
corresponding rate of utility.

b) Energy Charges
These charges relate to energy (kilowatt hours) consumed during month / billing period
and corresponding rates, often levied in slabs of use rates. Some utilities now charge on the basis
of apparent energy (kVAh), which is a vector sum of kWh and kVArh.

c) Power factor
Power factor penalty or bonus rates, as levied by most utilities, are to contain reactive
power drawn from grid.

d) Fuel cost
Fuel cost adjustment charges as levied by some utilities are to adjust the increasing fuel
expenses over a base reference value.
e) Electricity duty charges
Electricity duty charges levied w.r.t units consumed.

f) Meter rentals

g) Lighting and fan power consumption

Lighting and fan power consumption is often at higher rates, levied sometimes on slab
basis or on actual metering basis.

h) Time Of Day (TOD)

Time Of Day (TOD) rates like peak and non-peak hours are also prevalent in tariff
structure provisions of some utilities.

i) Penalty for exceeding contract demand

2.3 Electricity Billing - LT Supply

The electricity billing by utilities for LT category, is often done on one-part tariff structure,
i.e. billing is done for actual energy drawn during the billing cycle.

2.4 The Tariff Structure of LT Electricity Billing

The tariff structure of LT supply generally includes the following components:

a) Energy Charges
These charges relate to energy (kilowatt hours) consumed during month / billing period
and corresponding rates, often levied in slabs of use rates. Some utilities now charge on the basis
of apparent energy (kVAh), which is a vector sum of kWh and kVArh.
b)Meter rentals

c) Surcharge if metering is at LT side in some of the utilities

2.5 Transformers
A transformer can accept energy at one voltage and deliver it at another voltage. This permits
electrical energy to be generated at relatively low voltages and transmitted at high voltages and
low currents, thus reducing line losses and voltage drop (see Figure 2.1).

Figure 2.1 View of a Transformer

Transformers consist of two or more coils that are electrically insulated, but magnetically
linked. The primary coil is connected to the power source and the secondary coil connects to the
load. The turn’s ratio is the ratio between the number of turns on the secondary to the turns on the
primary (See Figure 2.2).
Figure 2.2 Transformer Coil

The secondary voltage is equal to the primary voltage times the turn’s ratio. Ampere-turns are
calculated by multiplying the current in the coil times the number of turns. Primary ampere-
turns are equal to secondary ampere-turns. Voltage regulation of a transformer is the percent
increase in voltage from full load to no load.
2.5.1 Types of Transformers
Transformers are classified as two categories: power transformers and distribution
transformers.
Power transformers are used in transmission network of higher voltages, deployed
for step-up and step down transformer application (400 kV, 200 kV, 110 kV, 66 kV, 33kV)
Distribution transformers are used for lower voltage distribution networks as a
means to end user connectivity. (11kV, 6.6 kV, 3.3 kV, 440V, 230V)
2.5.2 Rating of Transformer

Rating of the transformer is calculated based on the connected load and applying the
diversity factor on the connected load, applicable to the particular industry and arrive at the
kVA rating of the Transformer. Diversity factor is defined as the ratio of overall maximum
demand of the plant to the sum of individual maximum demand of various equipments.
Diversity factor varies from industry to industry and depends on various factors such as
individual loads, load factor and future expansion needs of the plant. Diversity factor will
always be less than one.

2.5.3 Location of Transformer

Location of the transformer is very important as far as distribution loss is concerned.
Transformer receives HT voltage from the grid and steps it down to the required voltage.
Transformers should be placed close to the load centre, considering other features like
optimization needs for centralized control, operational flexibility etc. This will bring down the
distribution loss in cables.

2.5.4 Transformer Losses and Efficiency

The efficiency varies anywhere between 96 to 99 percent. The efficiency of the
transformers not only depends on the design, but also, on the effective operating load.

Transformer losses consist of two parts: No-load loss and Load loss

1. No-load loss (also called core loss) is the power consumed to sustain the magnetic field
in the transformer's steel core. Core loss occurs whenever the transformer is energized;
core loss does not vary with load. Core losses are caused by two factors: hysteresis and
eddy current losses. Hysteresis loss is that energy lost by reversing the magnetic field in
 the core as the magnetizing AC rises and falls and reverses direction. Eddy current loss
is a result of induced currents circulating in the core.

2. Load loss (also called copper loss) is associated with full-load current flow in the trans-
former windings. Copper loss is power lost in the primary and secondary windings of a
transformer due to the ohmic resistance of the windings. Copper loss varies with the

square of the load current. (P = I2R).

2.6 Power Factor Improvement and Benefits

2.6.1 Power factor Basics
In all industrial electrical distribution systems, the major loads are resistive and inductive.
Resistive loads are incandescent lighting and resistance heating. In case of pure resistive loads,
the voltage (V), current (I), resistance (R) relations are linearly related, i.e.
V=IxR and Power (kW) = V x I

Typical inductive loads are A.C. Motors, induction furnaces, transformers and ballast- type
lighting. Inductive loads require two kinds of power: a) active (or working) power to perform the
work and b) reactive power to create and maintain electro-magnetic fields.
Active power is measured in kW (Kilo Watts). Reactive power is measured in kVAr (Kilo
Volt-Amperes Reactive).
The vector sum of the active power and reactive power make up the total (or apparent)
power used. This is the power generated by the SEBs for the user to perform a given amount of
work. Total Power is measured in kVA (Kilo Volts-Amperes) (See Figure 2.3).

Fig 2.3 Power Triangle

 The active power (shaft power required or true power required) in kW and the reactive
power required (kVAr) are 90° apart vectorically in a pure inductive circuit i.e., reactive power
kVAr lagging the active kW. The vector sum of the two is called the apparent power or kVA, as
illustrated above and the kVA reflects the actual electrical load on distribution system.

The ratio of kW to kVA is called the power factor, which is always less than or equal to
unity. Theoretically, when electric utilities supply power, if all loads have unity power factor,
maximum power can be transferred for the same distribution system capacity. However, as the
loads are inductive in nature, with the power factor ranging from 0.2 to 0.9, the electrical
distribution network is stressed for capacity at low power factors.

2.6.2 Improving Power Factor

The solution to improve the power factor is to add power factor correction capacitors to
the plant power distribution system. They act as reactive power generators, and provide the
needed reactive power to accomplish kW of work. This reduces the amount of reactive power,
and thus total power, generated by the utilities.

2.6.3 The advantages of PF improvement by capacitor addition

 Reactive component of the network is reduced and so also the total current in the
system from the source end.
 I2R power losses are reduced in the system because of reduction in current.
 Voltage level at the load end is increased.
 kVA loading on the source generators as also on the transformers and lines up to the
capacitors reduces giving capacity relief. A high power factor can help in utilizing the
full capacity of your electrical system.

2.6.4 Cost benefits of PF improvement

While costs of PF improvement are in terms of investment needs for capacitor addition
the benefits to be quantified for feasibility analysis are:
 Reduced kVA (Maximum demand) charges in utility bill
 Reduced distribution losses (KWH) within the plant network
 Better voltage at motor terminals and improved performance of motors
  A high power factor eliminates penalty charges imposed when operating with a low
power factor
 Investment on system facilities such as transformers, cables, switchgears etc for
delivering load is reduced.

2.6.5 Direct relation for capacitor sizing

kVAr Rating = kW [tan Φ1 – tan Φ2]
Where kVAr rating is the size of the capacitor needed, kW is the average power drawn,
tan ф1 is the trigonometric ratio for the present power factor, and tan ф2 is the trigonometric ratio
for the desired PF.

Φ1 = Existing (Cos-1 PF1) and Φ2 = Improved (Cos-1 PF2)

2.6.6 Location of Capacitors

The primary purpose of capacitors is to reduce the maximum demand. Additional
benefits are derived by capacitor location. The Figure 2.3 indicates typical capacitor locations.
Maximum benefit of capacitors is derived by locating them as close as possible to the load. At
this location, its kVAr are confined to the smallest possible segment, decreasing the load current.
This, in turn, will reduce power losses of the system substantially. Power losses are proportional
to the square of the current. When power losses are reduced, voltage at the motor increases;
thus, motor performance also increases.

Fig 2.4 Power Distribution Diagram Illustrating Capacitor Locations

 Locations C1A, C1B and C1C of Figure 1.9 indicate three different arrangements at the
load. Note that in all three locations extra switches are not required, since the capacitor is either
switched with the motor starter or the breaker before the starter. Case C1A is recommended for
new installation, since the maximum benefit is derived and the size of the motor thermal
protector is reduced. In Case C1B, as in Case C1A, the capacitor is energized only when the
motor is in operation. Case C1B is recommended in cases where the installation already exists
and the thermal protector does not need to be re-sized. In position C1C, the capacitor is
permanently connected to the circuit but does not require a separate switch, since capacitor can
be disconnected by the breaker before the starter.
It should be noted that the rating of the capacitor should not be greater than the no-load
magnetizing kVAr of the motor. If this condition exists, damaging over voltage or transient
torques can occur. This is why most motor manufacturers specify maximum capacitor ratings to
be applied to specific motors.
The next preference for capacitor locations as illustrated by Figure 1.9 is at locations C2
and C3. In these locations, a breaker or switch will be required. Location C4 requires a high
voltage breaker. The advantage of locating capacitors at power centres or feeders is that they can
be grouped together. When several motors are running intermittently, the capacitors are
permitted to be on line all the time, reducing the total power regardless of load.
From energy efficiency point of view, capacitor location at receiving substation only
helps the utility in loss reduction. Locating capacitors at tail end will help to reduce loss
reduction within the plants distribution network as well and directly benefit the user by reduced
consumption. Reduction in the distribution loss % in kWh when tail end power factor is raised
from PF1 to a new power factor PF2, will be proportional to

2.7 Harmonics
In any alternating current network, flow of current depends upon the voltage applied and the
impedance (resistance to AC) provided by elements like resistances, reactances of inductive and
capacitive nature. As the value of impedance in above devices is constant, they are called linear
whereby the voltage and current relation is of linear nature.
 However in real life situation, various devices like diodes, silicon controlled rectifiers,
PWM systems, thyristors, voltage & current chopping saturated core reactors, induction & arc
furnaces are also deployed for various requirements and due to their varying impedance
characteristic, these NON LINEAR devices cause distortion in voltage and current waveforms
which is of increasing concern in recent times. Harmonics occurs as spikes at intervals which
are multiples of the mains (supply) frequency and these distort the pure sine wave form of the
supply voltage & current.
Harmonics are multiples of the fundamental frequency of an electrical power system. If, for
example, the fundamental frequency is 50 Hz, then the 5th harmonic is five times that
frequency, or 250 Hz. Likewise, the 7th harmonic is seven times the fundamental or 350 Hz,
and so on for higher order harmonics.
Harmonics can be discussed in terms of current or voltage. A 5th harmonic current is simply
a current flowing at 250 Hz on a 50 Hz system. The 5th harmonic current flowing through the
system impedance creates a 5th harmonic voltage. Total Harmonic Distortion (THD) expresses
the amount of harmonics. The following is the formula for calculating the THD for current:

When harmonic currents flow in a power system, they are known as “poor power quality”
or “dirty power”. Other causes of poor power quality include transients such as voltage spikes,
surges, sags, and ringing. Because they repeat every cycle, harmonics are regarded as a steady-
state cause of poor power quality.
When expressed as a percentage of fundamental voltage THD is given by,

where V1 is the fundamental frequency voltage and Vn is nth harmonic voltage component.
2.7.1 Major Causes Of Harmonics
Devices that draw non-sinusoidal currents when a sinusoidal voltage is applied create
harmonics. Frequently these are devices that convert AC to DC. Some of these devices are listed
below:

 Electronic Switching Power Converters

 Computers, Uninterruptible power supplies (UPS), Solid-state rectifiers

 Electronic process control equipment, PLC’s, etc
 Electronic lighting ballasts, including light dimmer
Reduced voltage motor controllers

Arcing Devices
 Discharge lighting, e.g. Fluorescent, Sodium and Mercury vapor
 Arc furnaces, Welding equipment, Electrical traction system

Ferromagnetic Devices
 Transformers operating near saturation level
 Magnetic ballasts (Saturated Iron core)
 Induction heating equipment, Chokes, Motors

Appliances
 TV sets, air conditioners, washing machines, microwave ovens
 Fax machines, photocopiers, printers

These devices use power electronics like SCRs, diodes, and thyristors, which are a growing
percentage of the load in industrial power systems. The majority use a 6-pulse converter. Most
loads which produce harmonics, do so as a steady-state phenomenon. A snapshot reading of an
operating load that is suspected to be non-linear can determine if it is producing harmonics.
Normally each load would manifest a specific harmonic spectrum.
Many problems can arise from harmonic currents in a power system. Some problems are
easy to detect; others exist and persist because harmonics are not suspected. Higher RMS cur-
rent and voltage in the system are caused by harmonic currents, which can result in any of the
problems listed below:
1. Blinking of Incandescent Lights - Transformer Saturation
2. Capacitor Failure - Harmonic Resonance
3. Circuit Breakers Tripping - Inductive Heating and Overload
4. Conductor Failure - Inductive Heating
5. Electronic Equipment Shutting down - Voltage Distortion
6. Flickering of Fluorescent Lights - Transformer Saturation
7. Fuses Blowing for No Apparent Reason - Inductive Heating and Overload
8. Motor Failures (overheating) - Voltage Drop
9. Neutral Conductor and Terminal Failures - Additive Triplen Currents
10. Electromagnetic Load Failures - Inductive Heating
11. Overheating of Metal Enclosures - Inductive Heating
12. Power Interference on Voice Communication - Harmonic Noise
13. Transformer Failures - Inductive Heating

2.7.2 Overcoming Harmonics

Tuned Harmonic filters consisting of a capacitor bank and reactor in series are designed and
adopted for suppressing harmonics, by providing low impedance path for harmonic component.

The Harmonic filters connected suitably near the equipment generating harmonics help to
reduce THD to acceptable limits. In present Indian context where no Electro Magnetic
Compatibility regulations exist as a application of Harmonic filters is very relevant for indus-
tries having diesel power generation sets and co-generation units.

2.8 Electric Motors

Motors convert electrical energy into mechanical energy by the interaction between the
magnetic fields set up in the stator and rotor windings. Industrial electric motors can be broadly
classified as induction motors, direct current motors or synchronous motors. All motor types
have the same four operating components: stator (stationary windings), rotor (rotating
windings), bearings, and frame (enclosure).
2.9 Electric Motor Types

2.9.1 Induction Motors

Induction motors are the most commonly used prime mover for various equipments in
industrial applications. In induction motors, the induced magnetic field of the stator winding
induces a current in the rotor. This induced rotor current produces a second magnetic field, which
tries to oppose the stator magnetic field, and this causes the rotor to rotate.
The 3-phase squirrel cage motor is the workhorse of industry; it is rugged and reliable,
and is by far the most common motor type used in industry. These motors drive pumps, blowers
and fans, compressors, conveyers and production lines. The 3-phase induction motor has three
windings each connected to a separate phase of the power supply.

2.9.2 Direct-Current Motors

Direct-Current motors, as the name implies, use direct-unidirectional, current. Direct
current motors are used in special applications- where high torque starting or where smooth
acceleration over a broad speed range is required.

2.9.3 Synchronous Motors

AC power is fed to the stator of the synchronous motor. The rotor is fed by DC from a
separate source. The rotor magnetic field locks onto the stator rotating magnetic field and rotates
at the same speed. The speed of the rotor is a function of the supply frequency and the number of
magnetic poles in the stator. While induction motors rotate with a slip, i.e., rpm is less than the
synchronous speed, the synchronous motor rotate with no slip, i.e., the RPM is same as the
synchronous speed governed by supply frequency and number of poles. The slip energy is
provided by the D.C. excitation power.
2.10 Losses in Induction Motors

2.10.1 Stator and Rotor I2R Losses

These losses are major losses and typically account for 55% to 60% of the total losses.
I²R losses are heating losses resulting from current passing through stator and rotor conductors.
I²R losses are the function of a conductor resistance, the square of current. Resistance of
conductor is a function of conductor material, length and cross sectional area. The suitable
selection of copper conductor size will reduce the resistance. Reducing the motor current is most
readily accomplished by decreasing the magnetizing component of current. This involves
lowering the operating flux density and possible shortening of air gap. Rotor I ²R losses are a
function of the rotor conductors (usually aluminium) and the rotor slip. Utilisation of copper
conductors will reduce the winding resistance. Motor operation closer to synchronous speed will
also reduce rotor losses.

2.10.2 Core Losses

Core losses are those found in the stator-rotor magnetic steel and are due to hysterisis
effect and eddy current effect during 50 Hz magnetization of the core material. These losses are
independent of load and account for 20 – 25 % of the total losses.
The hysterisis losses which are a function of flux density, are be reduced by utilizing low
loss grade of silicon steel laminations. The reduction of flux density is achieved by suitable
increase in the core length of stator and rotor. Eddy current losses are generated by circulating
current within the core steel laminations. These are reduced by using thinner laminations.

2.10.3 Friction and Windage Losses

Friction and windage losses results from bearing friction, windage and circulating air
through the motor and account for 8 – 12 % of total losses. These losses are independent of load.
The reduction in heat generated by stator and rotor losses permit the use of smaller fan. The
windage losses also reduce with the diameter of fan leading to reduction in windage losses.
2.10.4 Stray Load-Losses
These losses vary according to square of the load current and are caused by leakage flux
induced by load currents in the laminations and account for 4 to 5 % of total losses. These losses
are reduced by careful selection of slot numbers, tooth/slot geometry and air gap.

2.11 Motor Efficiency

Two important attributes relating to efficiency of electricity use by A.C. Induction motors
are efficiency (), defined as the ratio of the mechanical energy delivered at the rotating shaft to
the electrical energy input at its terminals, and power factor (PF). Motors, like other inductive
loads, are characterized by power factors less than one. As a result, the total current draw needed
to deliver the same real power is higher than for a load characterized by a higher PF. An
important effect of operating with a PF less than one is that resistance losses in wiring upstream
of the motor will be higher, since these are proportional to the square of the current. Thus, both a
high value for  and a PF close to unity are desired for efficient overall operation in a plant.
Squirrel cage motors are normally more efficient than slip-ring motors, and higher-speed
motors are normally more efficient than lower-speed motors. Efficiency is also a function of
motor temperature. Totally-enclosed, fan-cooled (TEFC) motors are more efficient than screen
protected, drip-proof (SPDP) motors. Also, as with most equipment, motor efficiency increases
with the rated capacity.

2.12 Energy-Efficient Motors

Energy-efficient motors (EEM) are the ones in which, design improvements are
incorporated specifically to increase operating efficiency over motors of standard design. Design
improvements focus on reducing intrinsic motor losses. Improvements include the use of lower-
loss silicon steel, a longer core (to increase active material), thicker wires (to reduce resistance),
thinner laminations, smaller air gap between stator and rotor, copper instead of aluminum bars in
the rotor, superior bearings and a smaller fan, etc.
 Energy-efficient motors now available in India operate with efficiencies that are typically
3 to 4 percentage points higher than standard motors. In keeping with the stipulations of the BIS,
energy-efficient motors are designed to operate without loss in efficiency at loads between 75 %
and 100 % of rated capacity. This may result in major benefits in varying load applications. The
power factor is about the same or may be higher than for standard motors. Furthermore, energy-
efficient motors have lower operating temperatures and noise levels, greater ability to accelerate
higher-inertia loads, and are less affected by supply voltage fluctuations.

2.13 Factors Affecting Energy Efficiency & Minimizing Motor Losses in

Operation

Motor performance is affected considerably by the quality of input power, that is the
actual volts and frequency available at motor terminals vis-à-vis rated values as well as voltage
and frequency variations and voltage unbalance across the three phases. Motors in India must
comply with standards set by the Bureau of Indian Standards (BIS) for tolerance to variations in
input power quality. The BIS standards specify that a motor should be capable of delivering its
rated output with a voltage variation of +/- 6 % and frequency variation of +/- 3 %. Fluctuations
much larger than these are quite common in utility-supplied electricity in India. Voltage
fluctuations can have detrimental impacts on motor performance.
Voltage unbalance, the condition where the voltages in the three phases are not equal, can
be still more detrimental to motor performance and motor life. Unbalance typically occurs as a
result of supplying single-phase loads disproportionately from one of the phases. It can also
result from the use of different sizes of cables in the distribution system.

Example2.1:
A three phase,10 kW motor has the name plate details as 415 V, 18.2 amps and 0.9 PF.
Actual input measurement shows 415 V, 12 amps and 0.7 PF which was measured with power
analyzer during motor running. Determine the motor loading?

Rated output at full load = 10 kW

3 x V x I x CosΦ = 1.732 x 0.415 x 18.2 x 0.9 = 11.8 kW
The rated efficiency of motor at full load = (10 x 100) / 11.8 = 85%
Measured (Actual) input power = 1.732x 0.415 x 12x 0.7 = 6.0 kW

Example 2.2:
A 400 Watt mercury vapor lamp was switched on for 10 hours per day. The supply volt is 230
V. Find the power consumption per day? (Volt = 230 V, Current = 2 amps, PF = 0.8)

Electricity consumption (kWh) = V x I x CosΦ x No of Hours

= 0.230 x 2 x 0.8 x 10 = 3.7 kWh or Units

Example 2.3:
An electric heater of 230 V, 5 kW rating is used for hot water generation in an industry. Find
electricity consumption per hour (a) at the rated voltage (b) at 200 V.

(a) Electricity consumption (kWh) at rated voltage = 5 kW x 1 hour = 5 kWh.

(b) Electricity consumption at 200 V (kWh) = (200 / 230)2 x 5 kW x 1 hour = 3.78 kWh.

Example2.4 :
The utility bill shows an average power factor of 0.72 with an average KW of 627. How
much kVAr is required to improve the power factor to .95 ?
Using formula
Cos Φ 1 = 0.72 , tan Φ 1 = 0.963
Cos Φ 2 = 0.95 , tan Φ 2 = 0.329
kVAr required = P ( tan Φ 1 - tan Φ 2 )
= 627 (0.964 – 0.329)
= 398 kVAr
2.14 Motor Efficiency Computation
Example 2.5:

Motor Specifications
Rated power = 34 kW/45 HP
Voltage = 415 Volt
Current = 57 Amps
Speed = 1475 rpm
Insulation class = F
Frame = LD 200 L
Connection = Delta
No load test Data
Voltage, V = 415 Volts
Current, I = 16.1 Amps
Frequency, F = 50 Hz
Stator phase resistance at 30°C = 0.264 Ohms
No load power, Pnl = 1063.74 Watts
2.15 Lighting
Lighting is provided in industries, commercial buildings, indoor and outdoor for providing
comfortable working environment.
Lighting is an area, which provides a major scope to achieve energy efficiency at the design
stage, by incorporation of modern energy efficient lamps, luminaires and gears, apart from good
operational practices.

2.16 Lumen
It is a unit of light flow or luminous flux. The lumen rating of a lamp is a measure of the
total light output of the lamp. The most common measurement of light output (or luminous flux) is
the lumen. Light sources are labeled with an output rating in lumens.

2.17 Lux
It is the metric unit of measure for illuminance of a surface. One lux is equal to one lumen
per square meter.

2.18 Lamp Circuit Efficacy

It is the amount of light (lumens) emitted by a lamp for each watt of power consumed by
the lamp circuit, i.e. including control gear losses. This is a more meaningful measure for those
lamps that require control gear. Unit: lumens per circuit watt (lm/W).

2.19 Types of Lightings

2.19.1 Ambient Indoor Lighting

General or ambient lighting is intended to light up a room in its entirety, to provide a

uniform level of illumination throughout the space, independently of other lighting sources.

Moreover, its purpose is to ensure safe and easy traffic, as well as to create an overview of
the room. The ambient light ‘bounces’ off the walls to illuminate as much space as possible.

Types of fixtures that can provide general ambient indoor lighting:

 Chandelier

 Ceiling mounted fixture

 Wall-mounted fixture

 Traditional recessed fixtures and/or LED Downlights

 Track light

 Floor lamp

 Table lamp

2.19.2 Ambient Outdoor Lighting

Outdoor lighting is usually installed in order to ensure visibility and increase security
around a building. It is also recommended to light up the exterior of the building, entrances and
stairs to reduce and perhaps eliminate the risk of injury that can occur when entering and leaving
the building.

Types of fixtures that provide ambient outdoor lighting:

 Spotlight

 Hanging fixture

 Garage and canopy lighting

 Post lantern
  Wall lighting

 Recessed fixture used in overhanging structures

2.19.3 Task Lighting

Task lighting sheds light on the tasks a person carries out in a given space such as reading,
cooking, computer work, for which a brighter light is required in a smaller focal point of the room.

For a more pleasant lighting, it is often best to avoid harsh lights or lighting that casts
troublesome shadows. It is also practical to install a single switch for focal lighting, independent
from the room’s overall lighting switch.

Types of Fixtures that Provide Task Lighting:

 Directional gimbal recessed fixture or downlight

 Pendant lighting

 Slim line bar and undercabinet

 Tape and extrusion

 Portable or desk lamp

2.19.4 Accent Lighting

Accent lighting is used mainly to focus on a specific point of interest or to achieve a desired effect.
This type of lighting gives the impression of a larger room; it is more frequently used to highlight
an architectural feature, a plant (in outdoor layout), a sculpture, or a collection of objects.

As a general rule, effective accent lighting requires the installation of three times more light on the
focal point than ambient lighting generally provides.

Types of Fixtures that Provide Accent Lighting:

 Track light
  Slim line bar and undercabinet

 Tape and extrusion

 Directional recessed fixture or downlight

 Wall-mounted fixtures

2.20 LED Lighting

The LEDs have the following merits over the filament lamps.

 Lesser power consumption (Less than 1 W/lamp)

 Withstand high voltage fluctuation in the power supply.
 Longer operating life (more than 1,00,000 hours)

2.21 Encon Measures in Lighting

 Install energy efficient fluorescent lamps in place of "Conventional" fluorescent lamps.

 Install Compact Fluorescent Lamps (CFL's) in place of incandescent lamps.CFL's are

highly suitable for places such as Living rooms, Hotel lounges, Bars, Restaurants,
Pathways, Building entrances, Corridors, etc.
 Install metal halide lamps in place of mercury / sodium vapour lamps.These lamps are
highly suitable for applications such as assembly line, inspection areas, painting
shops, etc.
 Install High Pressure Sodium Vapour (HPSV) lamps for applications where colour
rendering is not critical such as street lighting, yard lighting, etc.

 Install LED panel indicator lamps in place of filament lamps. These lamps are suitable
in industries for monitoring, fault indication, signaling, etc.

 Grouping of lighting system, to provide greater flexibility in lighting control.

 Install microprocessor based controllers. Advanced lighting control system uses

movement detectors or lighting sensors, to feed signals to the controllers.
 Ensure optimum usage of day lighting.

 Installation of "exclusive" transformer for lighting. This provides a better voltage

regulation for the lighting. This will reduce the voltage related problems, which in
turn increases the efficiency of the lighting system.

 Installat servo stabilizer for lighting feeder for improving lighting efficiency
 Installation of high frequency (HF) electronic ballasts in place of conventional ballasts
ENERGY CONSERVATION IN
INDUSTRIES
UNIT-III
THERMAL SYSTEMS
Stoichiometry, Boilers, Furnaces and Thermic Fluid
Heaters – Efficiency computation and encon
measures. Steam:Distribution &Usage: Steam
Traps, Condensate Recovery, Flash Steam
Utilization, Insulators & Refractories

1
 ENERGY CONSERVATION
[ 1] Topic “Boiler”
BOILER
 A boiler is an enclosed vessel that provides a means
for combustion heat to be transferred into water until
it becomes heated water or steam.

 The hot water or steam under pressure is then usable

for transferring the heat to a process.

 Heat is transferred from one body to another by

means of:
 (1) radiation
 (2) convection

 (3) conduction
Introduction

STEAM TO
EXHAUST GAS VENT
PROCESS

STACK DEAERATOR

PUMPS

ECO-
NOMI-
ZER

VENT
BOILER
BURNER
WATER
SOURCE
BLOW DOW N
SEPARATOR FUEL

BRINE

CHEMICAL FEED
SOFTENERS

Figure: Schematic overview of a boiler room

BOILER
 The boiler system comprises of:
⚫ feed water system,
⚫ steam system and
⚫ fuel system.
 The feed water system
 provides water to the boiler and regulates it automatically
to meet the steam demand. Various valves provide
access for maintenance and repair.
 The steam system
 collects and controls the steam produced in the boiler.
Steam is directed through a piping system to the point of
use.
BOILER

 The fuel system

 includes all equipment used to provide fuel to generate
the necessary heat.
 The equipment required in the fuel system depends on

the type of fuel used in the system.

 The two sources of feed water are:
⚫ (1) Condensate or condensed steam returned
from the processes and
⚫ (2) Makeup water (treated raw water) which must
come from outside the boiler room and plant
processes.
What Type of Boilers Are There?

1. Fire Tube Boiler

2. Water Tube Boiler
3. Packaged Boiler
4. Fluidized Bed (FBC) Boiler
5. Stoker Fired Boiler
6. Pulverized Fuel Boiler
7. Waste Heat Boiler
 Type of Boilers

1. Fire Tube Boiler

• Relatively small steam
capacities (12,000 kg/hr)
• Low to medium steam
pressures (18 kg/cm2)
• Operates with oil, gas or
solid fuels
2. Water Tube Boiler

• Used for high steam demand

and pressure requirements
• Capacity range of 4,500 –
120,000 kg/hour
• Combustion efficiency
enhanced by induced draft
provisions
• Lower tolerance for water
quality and needs water
treatment plant
3. Packaged Boiler
To Chimney • Comes in complete
package
• Features
• High heat transfer
• Faster evaporation
• Good convective heat
transfer
• Good combustion
efficiency
Oil
• High thermal efficiency
Burner

• Classified based on
number of passes
(BIB Cochran, 2003)
4. Fluidized Bed Combustion (FBC) Boiler

• Particles (e.g. sand) are

suspended in high velocity air
stream: bubbling fluidized bed
• Combustion at 840° – 950° C
• Fuels: coal, washery rejects,
rice husk, bagasse and
agricultural wastes
• Benefits: compactness, fuel
flexibility, higher combustion
efficiency, reduced SOx & NOx
5. Stoke Fired Boilers

a) Spreader stokers
• Coal is first burnt in suspension then in coal bed
• Flexibility to meet load fluctuations
• Favored in many industrial applications
b) Chain-grate or traveling-grate stoker

• Coal is burnt on moving

steel grate
• Coal gate controls coal
feeding rate
• Uniform coal size for
complete combustion
6. Pulverized Fuel Boiler

• Pulverized coal powder blown with combustion

air into boiler through burner nozzles

• Combustion
temperature at 1300 -
1700 °C
• Benefits: varying coal
quality coal, quick
response to load
changes and high pre-
heat air temperatures

Tangential firing
7. Waste Heat Boiler

• Used when waste heat

available at medium/high
temp
• Auxiliary fuel burners used
if steam demand is more
than the waste heat can
generate
• Used in heat recovery from
exhaust gases from gas
turbines and diesel
engines
Boiler Assessment

1. Boiler
2. Boiler blow down
3. Boiler feed water treatment
Assessment of a Boiler

Boiler performance
• Causes of poor boiler performance
-Poor combustion
-Heat transfer surface fouling
-Poor operation and maintenance
-Deteriorating fuel and water quality

• Heat balance: identify heat losses

• Boiler efficiency: determine
deviation from best efficiency
Heat Balance
An energy flow diagram describes geographically how
energy is transformed from fuel into useful energy, heat
and losses

Stochiometric
ExcessAir
Un burnt

Stack Gas

FUEL INPUT STEAM

OUTPUT

Convection & Blow Ash and Un-burnt parts

Radiation Down of Fuel in Ash
Heat Balance
Balancing total energy entering a boiler against
the energy that leaves the boiler in different forms

12.7 % Heat loss due to dry flue gas

8.1 % Heat loss due to steam in fuel gas
100.0 % 1.7 %
Heat loss due to moisture in fuel
BOILER 0.3 %
Fuel Heat loss due to moisture in air

2.4 % Heat loss due to unburnts in residue

1.0 %
Heat loss due to radiation & other
unaccounted loss
73.8 %
Heat in Steam
Heat Balance
Goal: improve energy efficiency by reducing avoidable losses

Avoidable losses include:

- Stack gas losses (excess air, stack gas temperature)

- Losses by unburnt fuel
- Blow down losses
- Condensate losses
- Convection and radiation
PERFORMANCE EVALUATION OF
BOILERS

[ 20 ]
 Efficiency computation of Boilers
•Efficiency testing helps us to find out how far the
boiler efficiency drifts away from the best efficiency.
•Any observed abnormal deviations could therefore
be investigated to pinpoint the problem area for
necessary corrective action.
•Hence it is necessary to find out the current level of
efficiency for performance evaluation, which is a pre
requisite for energy conservation action in industry.
•Most standards for computation of boiler efficiency,
including IS 8753 and BS845 are designed for spot
measurement of boiler efficiency. Basically Boiler
efficiency can be tested by the following methods:
PERFORMANCE EVALUATION OF
BOILERS
 The performance parameters of boiler, like efficiency and
evaporation ratio reduces with time due to
⚫ poor combustion,
⚫ heat transfer surface fouling and
⚫ poor operation and maintenance.
 Even for a new boiler, reasons such as deteriorating fuel
quality, water quality etc. can result in poor boiler
performance.
 Boiler efficiency tests help us to find out the deviation of
boiler efficiency from the best efficiency and target
problem area for corrective action.
PERFORMANCE EVALUATION OF
BOILERS
 Thermal efficiency of boiler is defined as the
percentage of heat input that is effectively utilised to
generate steam.

 There are two methods of assessing boiler efficiency.

 PERFORMANCE EVALUATION OF BOILERS
Direct Method
 This is also known as ‘input-output method’ due to the
fact that it needs only the useful output (steam) and
the heat input (i.e. fuel) for evaluating the efficiency.

 This efficiency can be evaluated using the formula

PERFORMANCE EVALUATION OF
BOILERS
 Parameters to be monitored for the calculation of
boiler efficiency by direct method are :

 Quantity of steam generated per hour (Q) in kg/hr.

 Quantity of fuel used per hour (q) in kg/hr.

 The working pressure (in kg/cm2) and superheat temperature (oC), if

any
 The temperature of feed water (oC)

 Type of fuel and gross calorific value of the fuel (GCV) in kcal/kg of fuel
 PERFORMANCE EVALUATION OF BOILERS

 Where,
⚫ hg – Enthalpy of saturated steam in kcal/kg of steam
⚫ hf - Enthalpy of feed water in kcal/kg of water
 DIRECT METHOD
 Advantages of direct method:
⚫ Plant people can evaluate quickly the efficiency
of boilers
⚫ Requires few parameters for computation
⚫ Needs few instruments for monitoring

 Disadvantages of direct method:

⚫ Does not give clues to the operator as to why
efficiency of system is lower
⚫ Does not calculate various losses accountable
for various efficiency levels
 INDIRECT METHOD
 Indirect method is also called as heat loss method.

 The efficiency can be arrived at, by subtracting the heat

loss fractions from 100.

 The principle losses that occur in a boiler are:

⚫ Loss of heat due to dry fluegas
⚫ Loss of heat due to moisture in fuel and combustion air
⚫ Loss of heat due to combustion of hydrogen
⚫ Loss of heat due to radiation
⚫ Loss of heat due to unburnt fuel
 INDIRECT METHOD
 Thedata required for calculation of boiler efficiency
using indirect method are:

⚫ Ultimate analysis of fuel (H2, O2, S, C, moisture content, ash

content)
⚫ Percentage of Oxygen or CO2 in the flue gas
⚫ Flue gas temperature in 0C (Tf)
⚫ Ambient temperature in 0C (Ta) & humidity of air in kg/kg of dry
air.
⚫ GCV of fuel in kcal/kg
⚫ Percentage combustible in ash (in case of solid fuels)
⚫ GCV of ash in kcal/kg (in case of solid fuels)
 INDIRECT METHOD
 Solution :
 Theoretical air requirement

 Actual mass of air supplied/ kg of fuel

(AAS) = {1 + EA/100} x theoretical air
 INDIRECT METHOD

m = mass of dry flue gas in kg/kg of fuel

 Cp = Specific heat of flue gas (0.23 kcal/kg oC)
 INDIRECT METHOD
ii. Percentage heat loss due to evaporation of water
formed due to H2 in fuel
 INDIRECT METHOD
iii. Percentage heat loss due to evaporation of
moisture present in fuel
INDIRECT METHOD
INDIRECT METHOD
 INDIRECT METHOD

 In a relatively small boiler, with a capacity of 10 MW, the

radiation and unaccounted losses could amount to between
1% and 2% of the gross calorific value of the fuel

 while in a 500 MW boiler, values between 0.2% to 1% are

typical.
ENERGY CONSERVATION
OPPORTUNITIES

[ 37 ]
 ENERGY CONSERVATION OPPORTUNITIES
1. Stack Temperature
2. Feed Water Preheating using Economiser
3. Combustion Air Preheat
4. Incomplete Combustion
5. Excess Air Control
6. Radiation and Convection Heat Loss
7. Automatic Blowdown Control
8. Reduction of Scaling and Soot Losses
9. Proper Boiler Scheduling
10. Boiler Replacement
 ENERGY CONSERVATION OPPORTUNITIES
1. Stack Temperature
 The stack temperature should be as low as possible.

 However, it should not be so low that water vapor in the exhaust

condenses on the stack walls.

 This is important in fuels containing significant Sulphur as low

temperature can lead to Sulphur dew point corrosion.

 Stack temperatures greater than 200°C indicates potential for

recovery of waste heat.

 It also indicate the scaling of heat transfer/recovery equipment

and hence the urgency of taking an early shut down for water /
flue side cleaning.
 ENERGY CONSERVATION OPPORTUNITIES
2. Feed Water Preheating using Economiser
 Typically, the flue gases leaving a modern 3-pass shell boiler are at
temperatures of 200 to 300 oC.

 Thus, there is a potential to recover heat from these gases.

 The flue gas exit temperature from a boiler is usually maintained at

a minimum of 200 oC, so that the sulphur oxides in the flue gas do
not condense and cause corrosion in heat transfer surfaces.

 When a clean fuel such as natural gas, LPG or gas oil is used, the
economy of heat recovery must be worked out, as the flue gas
temperature may be well below 200oC.
 ENERGY CONSERVATION OPPORTUNITIES
2. Feed Water Preheating using Economiser

 The potential for energy saving depends on the type of

boiler installed and the fuel used.

 For a typically older model shell boiler, with a flue gas exit
temperature of 260oC, an economizer could be used to
reduce it to 200oC, increasing the feed water temperature
by 15oC.

 Increase in overall thermal efficiency would be in the order

of 3%.

 For a modern 3-pass shell boiler firing natural gas with a

flue gas exit temperature of 140oC a condensing
economizer would reduce the exit temperature to 65oC
increasing thermal efficiency by 5%.
 ENERGY CONSERVATION OPPORTUNITIES
3. Combustion Air Preheat
 Combustion air preheating is an alternative to feed-water
heating.

 In order to improve thermal efficiency by 1%, the combustion air

temperature must be raised by 20 oC.

 Most gas and oil burners used in a boiler plant are not designed
for high air preheat temperatures.

 Modern burners can withstand much higher combustion air

preheat,
 ENERGY CONSERVATION OPPORTUNITIES
4. Incomplete Combustion

 Incomplete combustion can arise from a shortage of air or poor

distribution of fuel.

 It is usually obvious from the colour or smoke, and must be

corrected immediately.

 In the case of oil and gas fired systems, CO or smoke (for oil fired
systems only) with normal or high excess air indicates burner
system problems.

 A more frequent cause of incomplete combustion is the poor mixing

of fuel and air at the burner.
 ENERGY CONSERVATION OPPORTUNITIES
4. Incomplete Combustion

 With coal firing, unburned carbon can comprise a big loss. It

occurs as carbon-in-ash and may amount to more than 2% of the
heat supplied to the boiler.

 Non uniform fuel size could be one of the reasons for incomplete
combustion.

 In chain grate stokers, large lumps will not burn out completely,
while small pieces and fines may block the air passage, thus
causing poor air distribution.
 ENERGY CONSERVATION OPPORTUNITIES
5. Excess Air Control

 Excess air is required in all practical cases to ensure complete

combustion
 The optimum excess air level for maximum boiler efficiency
occurs when the sum of the losses due to incomplete
combustion and loss due to heat in flue gases is minimum.

 This level varies with furnace design, type of burner, fuel and
process variables.

 It can be determined by conducting tests with different air fuel

ratios.
 ENERGY CONSERVATION OPPORTUNITIES
5. Excess Air Control

 Controlling excess air to an optimum level always results in

reduction in flue gas losses; for every 1% reduction in excess air
there is approximately 0.6% rise in efficiency.

 Portable oxygen analysers and draft gauges can be used to make

periodic readings to guide the operator to manually adjust the
flow of air for optimum operation.

 Excess air reduction up to 20% is feasible.

 ENERGY CONSERVATION OPPORTUNITIES
6. Radiation and Convection Heat Loss

 The external surfaces of a shell boiler are hotter than the

surroundings.

 The surfaces thus lose heat to the surroundings depending on

the surface area and the difference in temperature between the
surface and the surroundings.

 Repairing or augmenting insulation can reduce heat loss

through boiler walls and piping.
 ENERGY CONSERVATION OPPORTUNITIES
7. Automatic Blowdown Control

 Uncontrolled continuous blowdown is very wasteful.

 Automatic blowdown controls can be installed that sense and

respond to boiler water conductivity and pH.

 A 10% blow down in a 15 kg/cm2 boiler results in 3% efficiency

loss.
 ENERGY CONSERVATION OPPORTUNITIES
8. Reduction of Scaling and Soot Losses

 In oil and coal-fired boilers, soot buildup on tubes acts as an

insulator against heat transfer.

 Also same result will occur due to scaling on the water side.

 High exit gas temperatures at normal excess air indicate poor

heat transfer performance.

 Waterside deposits require a review of water treatment

procedures and tube cleaning to remove deposits.

 An estimated 1% efficiency loss occurs with every 22oC

increase in stack temperature.
 ENERGY CONSERVATION OPPORTUNITIES
9. Proper Boiler Scheduling

 Since, the optimum efficiency of boilers occurs at 65-85% of

full load,

 it is usually more efficient, on the whole, to operate a fewer

number of boilers at higher loads, than to operate a large
number at low loads.
 ENERGY CONSERVATION OPPORTUNITIES
10. Boiler Replacement

 The potential savings from replacing a boiler depend on

the anticipated change in overall efficiency.

 Since boiler plants traditionally have a useful life of well

over 25 years, replacement must be carefully studied.
 FURNACES

What is a Furnace?
A furnace is an equipment to melt metals
• for casting or
• for heating materials or
• for change of shape (rolling, forging etc) or
for change of properties (heat treatment).
 Types and classification of furnaces
Based on the method of generating heat: combustion type
(using fuels) and electric type
According Open fire place furnace
to mode of
heat transfer Heated through liquid medium

Forging

Re-rolling
Furnace According Periodical (Batch / continuous
classification to mode of pusher)
charging Continuous Pot

Glass tank
melting
(regenerative /
Mode of heat Recuperative recuperative)
recovery
Regenerative
 Characteristics of an Efficient Furnace

Furnace should be designed so that in a

given time, as much of material as
possible can be heated to an uniform
temperature as possible with the least
possible fuel and labour.
 Furnace Energy Supply

• Since flue gases directly contact the stock, the type of

fuel chosen is very important.
For example, some stock will not tolerate sulphur in
the fuel. Also use of solid fuels will release particulate
matter (dust), which will interfere with the stock
placed inside the furnace.
Hence, majority of the furnaces use liquid fuel,
gaseous fuel or electricity as energy input.

• Ferrous (steel, cast iron) melting furnaces such as

induction and arc furnaces use electricity
• Non-ferrous melting furnaces use oil.
 Oil Fired Furnaces

• Furnace oil is the major fuel used in reheating and

heat treatment furnaces
• LDO is used in furnaces where presence of sulphur is
undesirable.
• Furnaces operate with efficiencies as low as 7% as
against upto 90% achievable in other combustion
equipment such as boiler.
This is because of the high temperature at which the
furnaces operate to meet the required demand. For
example, a furnace heating the stock to 1200oC will
have its exhaust gases leaving atleast at 1200oC
resulting in a high heat loss through the stack.
 Forging Furnaces
Used for preheating billets and ingots to attain a ‘forge’
temperature.
The furnace temperature is maintained at 1200 to 1250oC.
Forging furnaces, use an open fireplace system and most
of the heat is transmitted by radiation.
The typical loading in a forging furnace is 5 to 6 tones
with the furnace operating for 16 to 18 hours daily.
The total operating cycle can be divided into (i) heat-up
time (ii) soaking time and (iii) forging time.
Specific fuel consumption depends upon the type of
material and number of ‘reheats’required.
 Rerolling Mill Furnaces
Batch type furnace: Continuous Pusher Type:
• Used for heating up scrap, • The process flow and operating
small ingots and billets cycles of a continuous pusher
weighing 2 to 20 kg. for batch type is the same as that of the
type rerolling. batch furnace.
• Charging and discharging of the • The material or stock recovers
‘material’ is done manually and a part of the heat in flue gases
the final product is in the form as it moves down the length of
of rods and strips. the furnace.
• Operating temperature is 1200 • Operating temperature is
oC. 1250oC.
• Total cycle time can be • Heat absorption by the material
categorized into heat-up time in the furnace is slow, steady
and rerolling time. and uniform throughout the
cross-section compared with
batch type.
 Heat Transfer in Furnaces
• Radiation from the
flame, hot
combustion products
and the furnace
walls and roof
• Convection due to
the movement of hot
gases over the stock
surface. Figure 4.3 : Heat Transfer in furnace
Types of Continuous Reheating Furnaces

Based on method by which stock moves through

the furnace
Stocks placed side by side to form stream of material
which is moved through the furnace
Stocks placed on hearth or supporting structure which
moves the stock
Continuous Steel Reheating Furnace Feature
Rotary hearth furnaces

Figure 4.7 Rotary hearth type furnace

Continuous Recirculating
Bogie type Furnaces
Performance Evaluation of a
typical Furnace

Figure 4.10 Heat losses in industrial heating Furnaces

 various furnace losses
Material handling loss
Cooling media losses

Wall Loss:
Radiation (opening) loss

Wall losses:

Figure 4.12. Radiation loss

Stack loss (Waste-gas loss)

Air infiltration
S
Figt
uro
e 4r
.11ewd
all lH
osseseat Loss:

Figure 4.13. Air infiltration from furnace opening.

General Fuel Economy Measures in
1) Complete combustion with minimum excess air
2)
Furnaces
Correct heat distribution
3) Operating at the desired temperature
4) Reducing heat losses from furnace openings
5) Maintaining correct amount of furnace draught
6) Optimum capacity utilization
7) Waste heat recovery from the flue gases
8) Minimum refractory losses
9) Use of Ceramic Coatings
 1) Complete Combustion with Minimum
Excess Air
The amount of heat lost in the flue gases depends upon
amount of excess air. In the case of a furnace carryin g
away flue gases at 900oC, % heat lost is shown in table :

Table Heat Loss in Flue Gas Based on Excess Air Level

Excess Air % of total heat in the fuel carried away

by waste gases (flue gas temp. 900oC)
25 48

50 55

75 63

100 71
 2) Correct Heat Distribution

Prevent flame
impingement.
To avoid high flame
temperature,damage
of refractory and for
better atomization
Heat distribution in furnace

Align burner
properly to avoid
touching the
material
To reduce scale
loss

Alignment of burners in furnace

3) Operating at Desired Temperature

Temperature for Different Furnaces

CORRECT
Slab Reheating furnaces 1200oC
TEMPERATURE
ENSURES GOOD
Rolling Mill furnaces QUALITY
1200oC PRODUCTS.

Bar furnace for Sheet Mill 800oC TEMPERATURE

HIGHER THAN
Bogey type annealing furnaces- 650oC -750oC REQUIRED
WOULD ONLY
USE UP MORE
FUEL

For maintaining temperature, do not leave it

to operator judgment, Use ON/OFF
controls
 4) Reducing Heat Loss from Furnace
Opening
Heat loss through openings consists of direct radiation and
combustion gas that leakssthrough openings.

Keeping the doors unnecessarily open leads to wastage of fuel

Inspection doors should not kept open during operation
Broken and damaged doors should be repaired

The heat loss from an opening can be calculated using the formula:
Q=4.88 x T 4 x a x A x H … k.Cal/hr
100
T: absolute temperature (K),
a: factor for total radiation
A: area of opening,
H: time (Hr)
 5)Maintaining correct amount of
furnace draught

Negative pressures : air infiltration- affecting air-fuel ratio control,

problems of cold metal and non-uniform metal temperatures,
Positive Pressure: Ex-filtration -Problems of leaping out of flames,
overheating of refractories,burning out of ducts etc.
 6) Optimum capacity utilization
There is a particular loading at which the furnace will operate at
maximum thermal efficiency.
Best method of loading is generally obtained by trial-noting the weight
of material put in at each charge, the time it takes to reach temperature
and the amount of fuel used.

Mismatching of furnace dimension with respect to charge and production

schedule.

Coordination between the furnace operator, production and planning

personnel is needed.
7) Waste heat recovery from the flue gases

• Stock preheating

• Combustion air preheating

• Using waste heat for other process

 8. Minimizing Wall Losses
About 30% of the fuel input to the furnace generally goes
to make up for heat losses in intermittent or continuous
furnaces. The appropriate choice of refractory and
insulation materials is needed for high fuel savings in
industrial furnaces.

The extent of wall losses depend on:

Emissivity of wall
Thermal conductivity of refractories
Whaeltlhth
W ericknfeusrsnace is operated continuously or
intermittently
Radiation Heat Loss from Surface of Furnace

The quantity (Q) of heat release from a reheating furnace is

calculated with the following formula:

  t  273 
4
t  273 
4

Q  a x (t1  t2 )  4.88 E x  
5/4 1
  2
 
 100   100 
 
where
a : factor regarding direction of the surface of natural convection
ceiling = 2.8, side walls = 2.2, hearth = 1.5
tl : temperature of external wall surface of the furnace (°C)
t2 : temperature of air around the furnace (°C)
E: emissivity of external wall surface of the furnace
9.Use of Ceramic Coatings

The benefits of applying a high-emissivity

ceramic coating:-

Rapid heat-up
Increased heat transfer at steady state
Improved temperature uniformity
Increased refractory life
Elimination of refractory dust.
Steam Distribution
System, Utilization
and Design
 Introduction

Why do we use steam?

• Transport and provision of energy
• Benefits
– Efficient and economic to generate
– Easy to distribute
– Easy to control
– Easily transferred to the process
– Steam plant easy to manage
– Flexible
• Alternatives are hot water and oils
2
 Introduction

What is steam?
• Steam saturation curve

Superheated steam
Sub-saturated water

Steam Saturation Curve (Spirax Sarco)

3
 Introduction

What is steam - Enthalpy

• Enthalpy of water (hf)
– Heat required to raise temperature from
0oC to current temperature
• Enthalpy of evaporation (hfg)
– Heat required to change water into
steam at boiling point
• Enthalpy of saturated steam (hg)
– Total energy in saturated steam
hg = hf + hfg 4
 Introduction

What is steam – Dryness fraction

• Dry saturated steam: T = boiling point
• Steam: mixture of water droplets and
steam
• Dryness fraction (x) is 0.95 if water
content of steam = 5%
• Actual enthalpy of evaporation =
dryness fraction X specific enthalpy hfg
5
 Introduction

What is steam?

Temperature Enthalpy Phase Diagram (Spirax Sarco) 6

 Introduction

Steam quality

Steam should be available

• In correct quantity
• At correct temperature
• Free from air and incondensable
gases
• Clean (no scale / dirt)
• Dry
85
 Contents: Steam

Introduction
Steam distribution system
Assessment of steam distribution
system
Energy efficiency opportunities

86
Steam Distribution System

What is the steam distribution

system?
• Link between steam generator and
point of use
• Steam generator
– Boiler
– Discharge from co-generation plant
• Boilers use
– primary fuel
– exhaust gases
87
 Typical steam circuit
Steam Distribution System

10
(Spirax Sarco)
Steam Distribution System

Pressure and steam

• Steam pressure influenced by many
factors
• Steam loses pressure in distribution
pipework
• Advantages of high pressure steam
– Increased thermal storage capacity of boiler
– Smaller bore steam mains required
– Less insulation of smaller bore steam mains
• Reduce steam pressure at point of use 90
Steam Distribution System

Most important components

1. Pipes 7. Steam traps

2. Drain points 8. Air vents
3. Branch lines 9. Condensate
4. Strainers recovery
5. Filters system
6. Separators 10. Insulation

90
Steam Distribution System

1. Pipes
• Pipe material: carbon steel or copper
• Correct pipeline sizing is important
• Oversized pipework:
– Higher material and installation costs
– Increased condensate formation
• Undersized pipework:
– Lower pressure at point of use
– Risk of steam starvation
– Risk of erosion, water hammer and noise
• Size calculation: pressure drop or
velocity 91
 Steam Distribution System

1. Pipes
• Pipeline layout: 1 m fall for every 100 m

(Spirax Sarco) 14
Steam Distribution System

2. Drain points
• Ensures that condensate can reach
steam trap
• Consideration must be give to
– Design
– Location
– Distance between drain points
– Condensate in steam main at shutdown
– Diameter of drain pipe
93
Steam Distribution System

2. Drain points

Trap Pocket too small (Spirax Sarco)

94
Steam Distribution System

2. Drain points

Properly Sized Trap Pocket (Spirax Sarco)

95
Steam Distribution System

3. Branch lines
• Take steam away from steam main
• Shorter than steam mains
• Pressure drop no problem if branch
line < 10 m

A Branch Line
(Spirax Sarco)
96
 Steam Distribution System

3. Branch lines
Branch line connections
– Top: driest steam
– Side or bottom: accept condensate and
debris

(Spirax Sarco) 19
 Steam Distribution System

3. Branch lines
• Drop leg: low point in branch line

20
Drop Leg Supplying Steam fo a Heater (Spirax Sarco)
 Steam Distribution System

3. Branch lines
• Sometime steam runs across rising
ground
• Condensate should run against steam
flow

21
Reverse Gradient on Steam Main (Spirax Sarco)
Steam Distribution System

4. Strainers

• Purpose
– Stop scale, dirt and other solids
– Protect equipment
– Reduce downtime and maintenance
• Fitted upstream of steam trap, flow
meter, control valve
• Two types: Y-type and basket type
22
 Steam Distribution System

4. Strainers

Y-Type strainers
• Handles high
pressures
• Lower dirt
holding
capacity: more
cleaning needed
(Spirax Sarco)
10
2
 Steam Distribution System

4. Strainers
Y-Type strainers

(Spirax Sarco)
10
3
 Steam Distribution System

4. Strainers
Basket type strainers
• Less pressure drop
• Larger dirt holding
capacity
• Only for horizontal
pipelines
• Drain plug to
remove condensate
(Spirax Sarco)
10
4
 Steam Distribution System

4. Strainers
Strainer screens
• Perforated screens
– Holes punched in flat sheet
– Large holes
– Removes large debris
• Mesh screens: Example of a 3-mesh Screen
(Spirax Sarco)
– Fine wire into mesh arrangement
– Small holes
– Removes small solids
10
5
Steam Distribution System

4. Strainers
• Other strainer options
• Magnetic inserts: remove iron/steel
debris
• Self cleaning strainers
– Mechanical: scraper or brush
– Backwashing: reverse flow direction
• Temporary strainers: equipment
protection during start-ups
27
 Steam Distribution System

5. Filters
• Consists of sintered stainless steel
filter element
• Remove smallest particles
– Direct steam injection – e.g. food
industry
– Dirty stream may cause product
rejection – e.g. paper machines
– Minimal particle emission required
from steam humidifiers
– Reduction of steam water content
28
Steam Distribution System

5. Filters
• Choose correct size due to large pressure
drop
• Do not exceed flow rate limits
• For steam applications
– Fit separator upstream to remove condensate
– Fit Y-type strainer upstream to remove large
particles
• Identify when cleaning needed
– Pressure gauges
– Pressure switch
29
Steam Distribution System

6. Separators
• Separators remove suspended water
droplets from steam
• Water in steam causes problems
– Water is barrier to heat transfer
– Erosion of valve seals and fittings and
corrosion
– Scaling of pipework and heating surfaces
from impurities
– Erratic operation and failure of valves and
flow meters
• Three types of separators 30
 Steam Distribution System

6. Separators – Baffle type

• Baffle plates change
direction of flow –
collect water droplets
• Cross-sectional area
reduces fluid speed –
water droplets fall out
of suspension
• Condensate in bottom
drained away through
steam trap
(Spirax Sarco)
11
0
 Steam Distribution System

6. Separators – Cyclonic type

• Fins generate cyclonic

flow
• Steam spins around
separator body
• Water thrown to wall
• Drainage through steam
trap

(Spirax Sarco)
11
1
 Steam Distribution System

6. Separators – Coalescence type

• Wire mesh pad

obstructs water
molecules
• Molecules coalesce into
droplets
• Large droplets fall to
bottom
• Drainage through steam
trap
(Spirax Sarco)
11
2
Steam Distribution System

7. Steam traps
• What is a steam trap?
– “Purges” condensate out of the steam system
– Allows steam to reach destination as dry as
possible
• Steam traps must handle variations in
– Quantity of condensate
– Condensate temperature
– Pressure (vacuum to > 100 bar)
112
Steam Distribution System

7. Steam traps

Selection depends on steam trap’s ability

to
• Vent air at start-up
• Remove condensate but not steam
• Maximize plant performance: dry steam

113
 Steam Distribution System

7. Steam traps
Three groups of steam traps
Operated by Operated by Operated by
changes in fluid changes in fluid changes in fluid
temperature StdeeanmsiTtyraps dynamics

Thermostatic Mechanical Thermodynamic

1. Liquid expansion 1. Impulse
1. Ball floating
2. Balance pressure 2. Labyrinth
2. Inverted bucket
3. Bimetallic 3. Fixed orifice

36
 Steam Distribution System

7. Steam traps
Application Feature Suitable trap
Steam mains  Open to atmosphere, small Thermodynamic,
capacity Mechanical:
 Frequent change in pressure Float
 Low pressure - high pressure
 Equipment  Large capacity Mechanical:
 Reboiler  Variation in pressure and Float
 Heater temperature is undesirable Bucket
 Dryer  Efficiency of the equipment is Inverted bucket
 Heat exchanger a problem
etc.

 Tracer line  Reliability with no over Thermodynamic,

 Instrumentation heating Thermostatic:
Bimetallic
(BEE India, 2004) 37
 Steam Distribution System

7. Steam traps – Ball float type

• Condensate in trap causes ball float to rise – condensate
is released
• Modern traps use thermostatic air vent to allow initial air
to pass

Float trap with air cock Float trap with thermostatic air vent
38
(Spirax Sarco)
Steam Distribution System

7. Steam traps – Ball float type

• Advantages
– Continuous condensate discharge
– Can handle light or heavy condensate loads
– Can discharge air freely
– Large capacity for its size
– Has steam lock release valve
– Resistance to water hammer
• Disadvantages
– Can be damaged by severe freezing
– Different internals needed for varying pressures
39
 Steam Distribution System

7. Steam traps – Inverted bucket type

• Bucket hangs down • Steam in bucket
• Lever pulls off seat condenses or bubbles
• Condensate flows through vent hole
under bucket and • Main valve opens
flows away • Condensate is
released

• Steam arrives
• Bucket rises and
shuts outlet

(Spirax Sarco)
40
Steam Distribution System

7. Steam traps – Inverted bucket type

• Advantages
– Can withstand high pressures
– Tolerates waterhammer
– Suited for superheated steam lines
– Safer because failure mode is open
• Disadvantages
– Slow air discharge
– Trap body must always have enough water
– Check valve needed if pressure fluctuations
– Water seal loss by T superheated steam
– Can be damaged by freezing
119
Steam Distribution System

7. Steam traps – considerations

• Waterhammer
– Condensate picked up by moving steam
– Can damage steam trap
– Continuous slope in flow direction reduces this
• Dirt
– Affects steam trap performance
• Strainers
– Help remove dirt and cheaper than
maintaining steam traps
120
 Steam Distribution System
7. Steam traps – considerations
• Steam locking
– Can occur in rotating machinery
– Only float trap has ‘steam lock release’valve

• Diffusers
– Installed to end of the pipe
– Reduces sound and ferocity of flash steam discharge

• Pipe sizing
– Correct pipe size - traps affected by resistance to flow
– Avoid pipe fittings close to trap – back pressure risk

• Air venting
– Important for system warm up and operation
43
 Steam Distribution System
7. Steam traps – considerations
• Group trapping

 44
(Spirax Sarco)
 Steam Distribution System

7. Steam traps – considerations

Drain pocket dimensions

(Spirax Sarco) 45
 Steam Distribution System

8. Air vents
Effect of air on heat transfer

(Spirax Sarco) 46
Steam Distribution System

8. Air vents
• Air in the system
– During start-up
– Condensing steam draws air in pipes
– In solution in the feedwater
• Signs of air
– Gradual fall of output of steam-heated
equipment
– Air bubbles in the condensate
– Corrosion
47
 Steam Distribution System

8. Air vents
• Automatic air vent on
jacketed pan (vessel)

• Automatic air vent on

end of main

(Spirax Sarco) 48
 Steam Distribution System

8. Air vent - location

• Within low lying
steam trap
opposite high level
steam inlet
• Opposite low level
steam inlet
• Opposite end of
steam inlet

49
(Spirax Sarco)
 Steam Distribution System

9. Condensate recovery system

• What is condensate
– Distilled water with heat content
– Discharged from steam plant and
equipment through steam traps
• Condensate recovery for
– Reuse in boiler feed tank, deaerator or as
hot process water
– Heat recovery through heat exchanger
50
Steam Distribution System

9. Condensate recovery system

Reasons for condensate recovery

• Financial reasons
• Water charges
• Effluent restrictions
• Maximizing boiler output

51
 Steam Distribution System

9. Condensate recovery system

Typical steam and condensate circuit with
condensate recovery

(Spirax Sarco)
52
 Steam Distribution System

9. Condensate recovery system

Four types of condensate lines

53
(Spirax Sarco)
Steam Distribution System

10. Insulation
• Insulator: low thermal conductor that keeps
heat confined within or outside a system
• Benefits
– Reduced fuel consumption
– Better process control
– Corrosion prevention
– Fire protection of equipment
– Absorbing of vibration
– Protects staff: hot surfaces, radiant heat
54
 UNIT-IV

ENERGY CONSERVATION IN MAJOR UTILITIES

Pumps, Fans, Blowers, Compressed Air
Systems, Refrigeration and Air Conditioning
Systems – Cooling Towers – D.G. sets

1
 Introduction

Fan Components
Electrical Equipment

Provide air for ventilation and

Fans & Blowers

industrial processes that need air flow

Turning Vanes
(typically used on
short radius
Outlet elbows)
Diffusers

Heat
Exchanger
Baffles

Filter Inlet
Vanes
Motor
Controller
Centrifugal Variable Frequency
(US DOE, 1989) Fan Belt Drive Motor
Drive 4
 Introduction

System Resistance
Electrical Equipment

• Sum of static pressure losses in

Fans & Blowers

system
• Configuration of ducts, pickups, elbows
• Pressure drop across equipment

• Increases with square of air volume

• Long narrow ducts, many bends: more
resistance
• Large ducts, few bends: less resistance
5
 Introduction

System Resistance
Electrical Equipment

System resistance curve for various

Fans & Blowers

flows

Actual with
system
resistance

calculated

(US DOE, 1989)

6
 Introduction

Fan Curve
Electrical Equipment

Performance curve of fan under

Fans & Blowers

specific conditions
• Fan volume
• System static
pressure
• Fan speed
• Brake
horsepower

(US DOE, 1989) 7

©©UUNNEEPP20 06
 Introduction

Operating Point
Electrical Equipment

Fan curve and system curve intersect

Fans & Blowers

Flow Q1 at
pressure P1 and
fan speed N1

Move to flow Q2
by closing damper
(increase system Move to flow Q2
resistance) by reducing fan
speed
8
 Introduction

Fan Laws
Electrical Equipment
Fans & Blowers

(BEE India, 2004)

9
 Training Agenda: Fans & Blowers

• Introduction
Electrical Equipment

• Types of fans and blowers Assessment of fans and blowers Energy

Fans & Blowers

efficiency opportunities
 Types of Fans & Blowers

Types of fans
Electrical Equipment
Fans & Blowers

• Centrifugal
• Axial

Types of blowers
• Centrifugal
• Positive displacement
 Types of Fans & Blowers

Centrifugal Fans
• Rotating impeller increases air velocity
Electrical Equipment
Fans & Blowers

• Air speed is converted to pressure

• High pressures for harsh conditions
• High temperatures
• Moist/dirty air streams
• Material handling
• Categorized by blade shapes
• Radial
• Forward curved
12
• Backward inclined
 Types of Fans & Blowers

Centrifugal Fans – Radial fans

Electrical Equipment

• Advantages
Fans & Blowers

• High pressure and temp

• Simple design
• High durability
• Efficiency up to 75%
• Large running clearances
Disadvantages
• • Suited for low/medium (Canadian Blower)
airflow rates only

13
 Types of Fans & Blowers

Centrifugal Fans – Forward curved

• Advantages
Electrical Equipment
Fans & Blowers

• Large air volumes against

low pressure
• Relative small size
• Low noise level

• Disadvantages
• Not high pressure / harsh
( Canadian Blower)
service
• Difficult to adjust fan output
• Careful driver selection
• Low energy efficiency 55-65% 14
 Types of Fans & Blowers

Centrifugal Fans - Backward-inclined

Electrical Equipment
Fans & Blowers

• Advantages
• Operates with changing
static pressure
• Suited for high flow and
forced draft services
• Efficiency >85%

• Disadvantages ( Canadian Blower)

• Not suited for dirty airstreams
• Instability and erosion risk
 Types of Fans & Blowers

Axial Fans
• Work like airplane propeller:
Electrical Equipment
Fans & Blowers

• Blades create aerodynamic lift

• Air is pressurized
• Air moves along fan axis

• Popular with industry: compact, low

cost and light weight
• Applications
• Ventilation (requires reverse airflow)
• Exhausts (dust, smoke, steam) 14
 Types of Fans & Blowers

Axial Fans – Propeller fans

Electrical Equipment

• Advantages
Fans & Blowers

• High airflow at low pressure

• Little ductwork
• Inexpensive
• Suited for rooftop
ventilation
• Reverse flow

• Disadvantages
• Low energy efficiency (Fan air Company)
• Noisy
 Types of Fans & Blowers

Axial Fans – Tube axial fans

Electrical Equipment

• Advantages
Fans & Blowers

• High pressures to overcome

duct losses
• Suited for medium-pressure,
high airflow rates
• Quick acceleration
• Space efficient

• Disadvantages
• Expensive
(Canadian Blower)
• Moderate noise
• Low energy efficiency 65%
18
 Types of Fans & Blowers

Axial Fans – Vane axial fans

Electrical Equipment
Fans & Blowers

• Advantages
• Suited for medium/high
pressures
• Quick acceleration
• Suited for direct motor shaft
connection
• Most energy efficient 85%

• Disadvantages
(Canadian Blower)
• Expensive
 Types of Fans & Blowers

Blowers
Electrical Equipment
Fans & Blowers

• Difference with fans

• Much higher pressures <1.20 kg/cm2
• Used to produce negative pressures for
industrial vacuum systems

• Types
• Centrifugal blower
• Positive displacement
 Types of Fans & Blowers

Centrifugal Blowers
Electrical Equipment

• Gear-driven impeller
Fans & Blowers

that accelerates air

• Single and multi-stage
blowers
• Operate at 0.35-0.70
kg/cm2 pressure
(Fan air Company)
• Airflow drops if system
pressure rises
© UNEP 2006
 Types of Fans & Blowers

Positive Displacement Blowers

Electrical Equipment

• Rotors trap air and push it through

Fans & Blowers

housing
• Constant air volume regardless of
system pressure
• Suited for applications prone to
clogging
• Turn slower than centrifugal blowers
• Belt-driven for speed changes20
 Training Agenda: Fans & Blowers

• Introduction
Electrical Equipment

• Types of fans and blowers Assessment of fans and blowers Energy

Fans & Blowers

efficiency opportunities
 Assessment of fans and blowers

Fan Efficiency and Performance

Electrical Equipment

• Fan efficiency:
Fans & Blowers

• Ratio of the power conveyed to air stream

and power delivered by the motor to the fan
• Depends on type of fan and impeller

• Fan performance curve

• Graph of different pressures and
corresponding required power
• Supplier by manufacturers
 Assessment of fans and blowers

Peak efficiency or Best Efficiency

Point (BEP)
Electrical Equipment
Fans & Blowers

Peak
Airfoil
Airfoil
Type of Fan Efficiency
Backward
Backward Range
y Radial
Radial Centrifugal fans:
Efficiency

c
n
e
ic Airfoil, Backward 79-83
if curved/inclined
f
E Modified radial 72-79

Radial 69-75
Tubular
Tubular
Pressure blower 58-68
Forward curved 60-65
Axial fans:
Forward
Forward Vane axial 78-85
Tube axial 67-72
Flow rate
Flow rate Propeller 45-50

25
 Assessment of fans and blowers

Methodology – fan efficiency

Electrical Equipment

Before calculating fan efficiency

Fans & Blowers

• Measure operating parameters

• Air velocity, pressure head, air stream temp,
electrical motor input

• Ensure that
• Fan is operating at rated speed
• Operations are at stable condition
 Assessment of fans and blowers

Methodology – fan efficiency

Electrical Equipment

Step 1: Calculate air/gas density

Fans & Blowers

t = Temperature of air/gas
at site condition

Cp = Pitot tube constant,

0.85 (or) as given by the
Step 2: Measure air velocity and manufacturer
calculate average
p = Average differential
pressure

γ = Density of air or gas at

test condition

Step 3: Calculate the volumetric

flow in the duct
 Assessment of fans and blowers

Methodology – fan efficiency

Electrical Equipment
Fans & Blowers

Step 4: Measure the power drive of the motor

Step 5: Calculate fan efficiency

• Fan mechanical efficiency

• Fan static efficiency

 Assessment of fans and blowers

Difficulties in Performance
Electrical Equipment

Assessment
Fans & Blowers

• Non-availability of fan specification

data
• Difficulty in velocity measurement
• Improper calibration of instruments
• Variation of process parameters
during tests
 Training Agenda: Fans & Blowers

• Introduction
Electrical Equipment

• Types of fans and blowers Assessment of fans

Fans & Blowers

and blowers Energy efficiency opportunities

 Energy Efficiency Opportunities
Electrical Equipment

1. Choose the right fan

Fans & Blowers

2. Reduce the system resistance

3. Operate close to BEP
4. Maintain fans regularly
5. Control the fan air flow

© UNEP 2006
 Energy Efficiency
Opportunities

1. Choose the Right Fan

Electrical Equipment

• Considerations for fan selection

Fans & Blowers

• Noise
• Rotational speed
• Air stream characteristics
• Temperature range
• Variations in operating conditions
• Space constraints and system layout
• Purchase/operating costs and operating life

• “Systems approach” most important!

 Energy Efficiency
Opportunities

1. Choose the Right Fan

Electrical Equipment

• Avoid buying oversized fans

Fans & Blowers

• Do not operate at Best Efficiency Point

• Risk of unstable operation
• Excess flow energy
• High airflow noise
• Stress on fan and system
 Energy Efficiency
Opportunities

2. Reduce the System Resistance

Electrical Equipment

• Increased system resistance

Fans & Blowers

reduces fan efficiency

• Check periodically
• Check after system
modifications
• Reduce where
possible
 Energy Efficiency
Opportunities

3. Operate Close to BEP

Electrical Equipment
Fans & Blowers

• Best Efficiency Point = maximum

efficiency
• Normally close to rated fan capacity
• Deviation from BEP results in
inefficiency and energy loss
 Energy Efficiency
Opportunities

4. Maintain Fans Regularly

Electrical Equipment

• Periodic inspection of all system

Fans & Blowers

components
• Bearing lubrication and replacement
• Belt tightening and replacement
• Motor repair or replacement
• Fan cleaning
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

a) Pulley change
Fans & Blowers

b) Dampers
c) Inlet guide vanes
d) Variable pitch fans
e) Variable speed drives (VSD)
f) Multiple speed drive
g) Disc throttle
h) Operating fans in parallel
i) Operating fans in series
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

a) Pulley change: reduce motor/drive

Fans & Blowers

pulley size
• Advantages
• Permanent speed
decrease
• Real energy reduction
(BEE India, 2004)
• Disadvantages
• Fan must handle capacity change
• Only applicable if V-belt system or motor
36
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

b) Dampers: reduce flow and increase

Fans & Blowers

upstream pressure
• Advantages
• Inexpensive
• Easy to install

• Disadvantages
• Limited adjustment
• Reduce flow but not energy consumption
• Higher operating and maintenance costs
37
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

c) Inlet guide vanes

Fans & Blowers

• Create swirls in fan direction

• Reduce angle air and fan blades
• Lowering fan load, pressure, air flow

• Advantages
• Improve efficiency: reduced load and airflow
• Cost effective at 80-100% of full air flow

• Disadvantage
•
 Energy Efficiency
Opportunities

5. Control the Fan Air flow

Electrical Equipment

d) Variable pitch fans: changes angle

Fans & Blowers

incoming airflow and blades

• Advantages
• High efficiency at range of operating conditions
• No resonance problems
• No stall problems at different flows

• Disadvantages
• Applicable to axial fans only
• Risk of fouling problems
• Reduced efficiency at low loads 41
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

e) Variable speed drives (VSDs): reduce

Fans & Blowers

fan speed and air flow

• Two types
• Mechanical VSDs
• Electrical VSDs (including VFDs)

• Advantages
• Most improved and efficient speed control
• Speed adjustments over continuous range

• Disadvantage: high costs 42

 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

e) Variable frequency drives

Fans & Blowers

• Change motor’s rotational speed by

adjusting electrical frequency of power
• Advantages
• Effective and easy flow control
• Improved efficiency over wide operating range
• Can be retrofitted to existing motors
• Compactness
• No fouling problems
• Reduced energy losses and costs 43 © UNEP 2006
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

f) Multiple speed drive

Fans & Blowers

• Changes fan speed from one speed to

other speed
• Advantages
• Efficient control of flow
• Suitable if only 2 speeds required

• Disadvantages
• Need to jump from speed to speed
• High investment
© UNEP 2006
costs 44
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

g) Disc throttle:
Fans & Blowers

Sliding throttle that changes width of

impeller exposed to air stream
• Advantages
• Simple design

• Disadvantages
• Feasible in some applications only 45
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

h) Operate more fans in parallel (instead

Fans & Blowers

of one large fan)

• Advantages
• High efficiencies at varying demand
• Risk of downtime avoided
• Less expensive and better performance than
one large fan
• Can be equipped with other flow controls

• Disadvantages
• Only suited for low resistance syst4e6m
 Energy Efficiency
Opportunities
5. Control the Fan Air flow
Electrical Equipment

i) Operate fans in series

Fans & Blowers

• Advantages
Lower average duct pressure
•
Less noise
•
Lower structural / electrical support required
•
• Disadvantages
• Not suited for low resistance
systems

47
 Energy Efficiency
Opportunities
5. Controlling the Fan Air Flow
Electrical Equipment

Comparing
Fans & Blowers

Fans in
Parallel
and Series

48
 Energy Efficiency
Opportunities

5. Controlling the Fan Air Flow

Electrical Equipment

Comparing
Fans & Blowers

the impact of
different types
of flow control
on power use

48
 Training Session on Energy
Equipment
Electrical Equipment

Fans & B
lo
we rs
Fans & Blowers

THANK YOU
FOR YOUR ATTENTION

50
 Disclaimer and References

• This PowerPoint training session was prepared as part of

the project “Greenhouse Gas Emission Reduction from
Electrical Equipment/

Industry in Asia and the Pacific” (GERIAP). While

Fans and Blowers

reasonable efforts have been made to ensure that the

contents of this publication are factually correct and
properly referenced, UNEP does not accept responsibility
for the accuracy or completeness of the contents, and shall
not be liable for any loss or damage that may be occasioned
directly or indirectly through the use of, or reliance on, the
contents of this publication. © UNEP, 2006.
• The GERIAP project was funded by the Swedish
International Development Cooperation Agency (Sida)
• Full references are included in the textbook chapter that is
available on www.energyefficiencyasia.org 51
Energy Performance of Pumps and
Cooling Towers

50
Pumps

51
Outline:

Introduction
Type of pumps

Assessment of pumps
Energy efficiency opportunities

52
Introduction
Pump have two main purposes
• Transfer liquid
from source to
destination
• Circulate liquid
around a system
Used for:
•Domestic, commercial, industrial,
agricultural services
•Municipal water and wastewater
services 53
Main pump components

54
 Main pump components

• Prime movers: electric motors, diesel

engines, air system
• Piping to carry fluid
• Valves to control flow in system
• Other fittings, control,
instrumentation
End-use equipment
• Heat exchangers, tanks, hydraulic
machines
55
Pumping System Characteristics

• Head destination

• Resistance of the system Static

head

• Two types: static and

friction
source

56
 Static Head

• Difference in height
between source and
destination
• Independent of flow

Static
head

Flow
57
Friction head
• Resistance to flow in pipe
and fittings
• Depends on size, pipes,
pipe fittings, flow rate,
nature of liquid
• Proportional to square of
flow rate

Friction
head

Flow
58
Type of Pumps

Pump Classification

59
Positive Displacement Pumps

• Reciprocating pump
• Displacement by reciprocation of piston
plunger
• Used only for viscous fluids and oil wells

• Rotary pump
• Displacement by rotary action of gear,
cam or vanes
• Several sub-types
• Used for special services in industry

60
Positive Displacement Pumps

61
Positive Displacement Pumps

62
Rotodynamic pumps
• Mode of operation
• Rotating impeller converts kinetic energy
into pressure to pump the fluid

• Two types
• Centrifugal pumps: pumping water in
industry – 75% of pumps installed
• Special effect pumps: specialized
conditions

63
Centrifugal Pumps
How do it work?

64
 Assessment of pumps

How to Calculate Pump Performance

• Pump shaft power (Ps) is actual horsepower
delivered to the pump shaft
Pump shaft power (Ps):
Ps = Hydraulic power Hp / pump efficiency ηPump
Pump Efficiency (ηPump):
ηPump = Hydraulic Power / Pump Shaft Power

• Pump output/Hydraulic/Water horsepower (Hp) is

the liquid horsepower delivered by the pump
Hydraulic power (Hp):
Hp = Q (m3/s) x Total head, hd - hs (m) x ρ (kg/m3) x g (m/s2) / 1000

65
Difficulties in Pump Assessment

• Absence of pump specification data to

assess pump performance
• Difficulties in flow measurement and
flows are often estimated
• Improper calibration of pressure gauges
& measuring instruments

66
Energy Efficiency Opportunities

1. Selecting the right pump

2. Controlling the flow rate by speed
variation
3. Pumps in parallel to meet varying
demand
4. Eliminating flow control valve
5. Eliminating by-pass control
6. Start/stop control of pump
7. Impeller trimming
67
Cooling Tower

68
Outline:

Introduction
Types of cooling towers
Assessment of cooling towers
Energy efficiency opportunities

69
 Introduction

A cooling tower is an
equipment used to
reduce the temperature
of a water stream by
extracting heat from
water and emitting it to
the atmosphere.

70
Component of Cooling Tower

71
 Components of a cooling tower

• Frame and casing: support exterior enclosures

• Fill: facilitate heat transfer by maximizing water / air contact
•
• Splash fill
• Film fill
• Cold water basin: receives water at bottom of tower

72
Components of a cooling tower

• Drift eliminators: capture droplets in

air stream
• Air inlet: entry point of air
• Nozzles: spray water to wet the fill
• Fans: deliver air flow in the tower

73
Types of Cooling Towers

• Natural Draft Cooling Tower

• Mechanical Draft Cooling Tower

• Forced Draft Cooling Tower

• Induced Draft Cooling Tower

74
Assessment of Cooling Towers

Performance Parameters

1. Range
2. Approach
3. Effectiveness
4. Cooling capacity
5. Evaporation loss
6. Cycles of concentration
7. Blow down losses
8. Liquid / Gas ratio
75
1. Range

Hot Water Temperature (In)

Difference between
cooling water inlet and
outlet temperature:

Range
(In) to the Tower
(Out) from the
Range (°C) = CW inlet Tower
temp – CW outlet temp

Cold Water Temperature (Out)

High range = good Approach
performance
Wet Bulb Temperature (Ambient)

76
2. Approach
Hot Water Temperature (In)
Difference between
cooling tower outlet cold
water temperature and
ambient wet bulb

Range
(In) to the Tower
temperature: (Out) from the
Tower

Approach (°C) =
CW outlet temp – Wet Cold Water Temperature
(Out)
bulb temp Approach
Wet Bulb Temperature
(Ambient)
Low approach = good
performance

77
3. Effectiveness

Hot Water Temperature (In)

Effectiveness in %

= Range / (Range +
Approach)

Range
(In) to the Tower
(Out) from the
= 100 x (CW temp – CW Tower

out temp) / (CW in

temp – Wet bulb temp)
Cold Water Temperature
(Out)

Approach
High effectiveness =
good performance Wet Bulb Temperature
(Ambient)

78
4. Cooling Capacity
Hot Water Temperature (In)
Heat rejected in kCal/hr
or tons of refrigeration
(TR)

Range
(In) to the Tower
= mass flow rate of water (Out) from the
X specific heat X Tower

temperature difference
Cold Water Temperature
High cooling capacity = (Out)

Approach
good performance
Wet Bulb Temperature
(Ambient)

79
5. Evaporation Loss
• Water quantity (m3/hr) Hot Water Temperature
(In)
evaporated for cooling duty

Range
• = theoretically, 1.8 m3 for (In) to the Tower
(Out) from the
every 10,000,000 kCal heat Tower
rejected
Cold Water Temperature
(Out)

Approach
• = 0.00085 x 1.8 x
Wet Bulb Temperature
circulation rate (m3/hr) x (Ambient)
(T1-T2)

• T1-T2 = Temp. difference

between inlet and outlet water 80
6. Cycles of concentration (C.O.C.)

Ratio of dissolved solids in circulating water to

the dissolved solids in make up water

7. Blow Down Losses

Depend on cycles of concentration and
the evaporation losses

Blow Down =
Evaporation Loss / (C.O.C. – 1)

81
8. Liquid Gas (L/G) Ratio

Ratio between water and air mass flow rates

Heat removed from the water must be equal to

the heat absorbed by the surrounding air

L(T1 – T2) = G(h2 – h1)

L/G = (h2 – h1) / (T1 – T2)

T1 = hot water temp (oC)

T2 = cold water temp (oC)
Enthalpy of air water vapor mixture at inlet wet bulb temp (h1)
and outlet wet bulb temp (h2)

82
Energy Efficiency Opportunities

1. Selecting a cooling tower

2. Fills
3. Pumps and water distribution
4. Fans and motors

83
➢Compressed Air :
“Compressed air is air which is kept under a pressure
that is greater than atmospheric pressure.”
➢ Advantages of Compressed Air :
• Wide Availability of Air & its compressibility.
• Easy Transportability in Long pipes & its storage
in pressure
vessels.
• It is free from fire hazards.
• Ease of handling with control of pressure,
force, motion, etc.
• Reliability of operation and remote controlling.
• Easier maintenance & cost effectiveness.
• It does not cause any pollution
➢ Disadvantages of
Compressed Air :
Compressed air is not cheap as power medium and it is
not as
safe as considered.
The main reasons are :-

• Loss of compressed air power due to inefficient

control and leakages.
• Loss of Energy due to poorly maintained
transmission and
distribution.
• Damage may occur due to over pressure in storage
vessel.
• Valves may seize at freezing temperatures due to
presence of moisture
in compressed air.
Industrial Uses of Compressed Air :
➢ To operate reciprocating tools e.g. in riveting ,hammers
,paving breakers ,diggers ,etc.
➢ To operate rotating tools e.g. air motors ,drills ,reamers
,grinders ,wrenches ,etc.
➢ In Vehicle propulsion (compressed air vehicle).
➢ Compressed Air Energy Storage.
➢ In Air Braking Systems:-Railway braking & Road vehicle systems
➢ Refrigeration using a vortex tube.
➢ Air-start systems in engines.
➢ In Operation & Control of valves & instruments.
➢ Use of air cushion to reduce friction to minimum level in
hovercrafts and air lift conveyors ,pneumatic elevators ,as
fluidizer for aerating solid product for reduction in apparent
density.
➢ Process gas compressing ,controls , and actuators in petroleum
Industry.
➢ Air Compressors :
▪ Air compressors account for significant amount of electricity used in Indian
industries.
▪ Air compressors are used in a variety of industries to supply process
requirements, to operate pneumatic tools and equipment, and to meet
instrumentation needs.
▪ Only 10-30% of energy reaches the point of end-use, and balance 70-90% of
energy of the power of the prime mover being converted to unusable heat
energy and to a lesser extent lost in form of friction, misuse and noise.
Types of Air Compressors :-
➢ Packaged rotary air compressors are most commonly
used because of their low noise levels and maintenance
costs. There are different types of packaged rotary air
compressor, including:
rotary screw, which is the most widely used type as it is
reliable, efficient and only needs basic routine maintenance &
rotary sliding vane.
➢ Reciprocating compressors are often used for small
industrial applications. Their specific energy
consumption is equal to or better than rotary
compressors. However, they can suffer from reduced
performance levels if not maintained properly.
➢ Centrifugal compressors are generally used for
applications that need a high volume of air. At high
flow rates, the centrifugal compressor is by far the
most energy efficient.
Compressed air systems usually consist of the following components :-
➢ Components
compressor of Compressed Air System :-
➢ air cooler
➢ air receiver tank
➢ filter
➢ dryer
➢ condensate trap
➢ distribution system
➢ The compressor produces compressed air at the required pressure.
➢ The air receiver tank acts as a reservoir to store and cool the
compressed air and helps make sure the system can cope with
variations in demand.
➢ The air cooler, filter and dryer all treat the air at different points in the
system. They remove impurities such as water, dirt and oil from the
air taken in by the compressor, as well as those added by the
compressor.
➢ Compressed air may be fed to various uses on a site via a distribution
system. These distribution systems can be relatively straightforward
or very complex.
➢ Compressor Performance :-
▪ Capacity of a Compressor :
“The capacity of a compressor is represented as Free Air
Delivery (FAD),i.e. air at atmospheric conditions at any specific
location.
It represents the actual rate of volume of air compressed and
delivered at atmospheric conditions represented as cubic meter
per minute (cmm).”
➢ Compressor Efficiency :-
Several different measures of compressor efficiency
are commonly used: volumetric efficiency, adiabatic
efficiency, isothermal efficiency and mechanical
efficiency.
Why & How to Conserve
Energy in Air Compressed
Systems ??
➢ Electric Energy, The Big Cost.
➢ 70% of Your Long-Term Compressor Cost is Electricity

▪ Analyze the total cost of a compressed air system and

you’ll realize that power cost is significant.
▪ In just one year it could exceed the cost of the
compressor itself.
▪ Over a period of ten years, this could consume 70% of
your overall costs.
▪ That’s why it is important to investigate energy
efficiency when considering a new compressor.
➢ Electric Energy, The Big Cost.
➢ 70% of Your Long-Term Compressor Cost is Electricity

Compressed Air Cost in Perspective

Costs over 10 Years

12%
12%

Electricity
76%
Maintenance
Equipment
➢ Cost Of Production Matters

➢ It takes 7-8 HP of electricity to

produce 1 HP in an air tool.

➢ Power consumed in
producing compressed air will
impact the competitiveness of
production units.
➢ Ways to Conserve energy & Improve
performance of compressed air systems :
Some of the important points to be considered to reduce energy
consumption are as follows :-

1. Location of Compressors :
• The location of compressor & use of filters plays an important role
on the amount of energy consumed.
• The lower inlet temperature to compressor results into lower energy input.
• It is observed that “Every 40C rise in inlet air temperature results in a
higher energy consumption by 1 % to achieve equivalent output”.
• Since the compressor room has higher temperature than the surrounding air
temperature, it is essential that intake pipe to L.P. compressor must be
extended outside the compressor room in a shade.
 2. Use of Air-filters:
• Air filters must be used to supply clean air at suction to
compressor to avoid wear of moving parts.
• Filters should have high dust separation capacity with minimum
pressure drop since higher pressure drop across the filter
increases the power consumption

3. Elevation :
• The altitude of a place has a direct impact on the volumetric
efficiency of the compressor.
• It is evident that compressors located at higher altitudes
consume more power to achieve a particular delivery pressure
than those at sea level, as the compression ratio is higher.
4. Intercooling in between the stages :
• Intercoolers should be provided in between the stages to reduce the
power requirement to run the compressor.
• Ideally, the temperature of the inlet air at each stage of a multi-stage
machine should be the same as it was at the first stage. This is referred
to as “perfect cooling” or isothermal compression.
• The extent of power saved depends on the intercooling of air carried out
in the intercooler.
• It is observed that “An Increase in 6 degree Celcius in the inlet air
temperature to second stage results in 2% of specific energy consumption”

5.Using Variable Speed Drives:

• Variable speed drives should be used for capacity control of
compressors to reduce power consumption.
6. By Controlling Pressure Settings :
• Compressor operates between pressure ranges called as loading (cut-in)
and unloading (cut-out) pressures.
• For the same capacity, a compressor consumes more power at higher
pressures. They should not be operated above their optimum operating
pressures as this not only wastes energy, but also leads to excessive wear,
leading to further energy wastage.
• The volumetric efficiency of a compressor is also less at higher delivery
pressures.

➢ Reducing Delivery Pressure :

“ A reduction in the delivery pressure by 1 bar in a
compressor would reduce the power consumption by 6 – 10 %.”
 7. Proper Arrangement of Pipe lengths & fittings :
• Air Distribution system should be such that the length of pipe up to
point of use in minimum and uses minimum pipe fittings and joints
so as to reduce the pressure losses.
• Where possible the piping system should be arranged as a closed
loop or “ring main” to allow for more uniform air distribution to
consumption points and to equalize pressure in the piping.

8. Use Blowers in place of Compressed Air System :

• Blowers must be used for low pressure applications instead of
compressed air (e.g. in agitation, air for combustion of fuel,
conveying materials in pipes.)
• Misuse of compressed air should be avoided for cleaning floors ,
equipment cleaning, etc.
9. Reduce Leakages :
• It is necessary that the leakages in the compressed air supply &
distribution system are eliminated as far as possible.

• Leakage tests are conducted by ultrasonic leak detectors. It is

done by observing & locating sources of ultrasonic vibrations
created by turbulent flow of air passing through leaks in
pressurized system.

• Another method of leak detection is by conducting no load test.

The distribution system is supplied compressed by closing all the
terminal valves of consumption points. The load on the
compressor will eventually reflect that there is a leakage in the
system.
10.Replace Pneumatic tools :

Pneumatic tools such as drills and grinders should be replaced by

motor driven tools where ever possible since the energy consumption
is almost 5 % to 10 % of the compressed air system if these pneumatic
tools are used.

12.Avoiding loss of air pressure due to friction :

The loss of pressure in piping is caused by resistance in pipe

fittings and valves, which dissipates energy by producing
turbulence. The piping system will be designed for a maximum
allowable pressure drop of 5 percent from the compressor to the
most distant point of use.
Case study:- NORGREN

world leader in pneumatic components and

automation systems
systematic self-examination and with the help
of safety and energy saving techniques and
products
directly increase overall profits, as well as
making a valuable contribution to the wider
issues.
Causes:-
leaks, pressure drops, over pressurization,
mmissuusseeooffjjeettssaannddppoooorrccoommpprreessssoorr
management.

around 30% of the air produced is wasted.

leakages
Causes:-
→ Aging pipe work, Flange connector gaskets
and pipe dope, loose Fittings, Flexible hoses
subjected to strain and abrasion, Couplings
with damaged seals, etc.
Remedies:-
→ planned maintenance routine that is
intolerant of leaks.
→ Isolate systems when not in use
→ Estimate the percentage of air lost to leaks.
Misuse of Jets
Causes:-
→ processes such as dusting, cooling,
separating and other tasks.
→ jets are left permanently running.

Remedies:-
→ With a suitable valve and sensor, these
can be controlled automatically so they are
only on when required.
Over pressurisation

Causes:-
→Many systems run at full line pressure with the only
control being the compressor cut off switch.
→ high friction demands higher set pressures.
Remedies:-
→ Use of pressure regulators at exit
→ Check for correct lubrication
Pressure drop

Causes:-
→ resistance to flow by localized restriction
and general friction in pipes and components.
→ Fitting a smaller filter
Remedies:-
→ Pipe routing should have gentle sweeping
bends where possible.
→ large enough filters
Compressor Management

Large compressor installations are likely

to be fitted with sophisticated power and
load management systems.

These use figures of expected

consumption rate, storage volume and
pressure to tell the compressor how long
to run in an off load condition before
shutting down during times of low or no
demand.
 UNIT V
ECONOMICS

Energy Economics –
Discount Rate,
Payback Period,
Internal Rate of
Return, Net Present
Value, Life Cycle
Costing –ESCO
concept
1. Introduction
In the process of energy management, at some stage, investment would be required for reduc- ing
the energy consumption of a process or utility. Investment would be required for modifica-
tions/retrofitting and for incorporating new technology. It would be prudent to adopt a system- atic
approach for merit rating of the different investment options vis-à-vis the anticipated sav- ings. It is
essential to identify the benefits of the proposed measure with reference to not only energy savings
but also other associated benefits such as increased productivity, improved prod- uct quality etc.
The cost involved in the proposed measure should be captured in totality viz.
• Direct project cost
• Additional operations and maintenance cost
• Training of personnel on new technology etc.
Based on the above, the investment analysis can be carried out by the techniques explained in
the later section of the chapter.

2. Investment Need, Appraisal and Criteria

To persuade your organization to commit itself to a program of investment in energy efficien- cy,
you need to demonstrate:
• The size of the energy problem it currently faces
• The technical and good housekeeping measure available to reduce waste
• The predicted return on any investment
• The real returns achieved on particular measures over time.
The need for investments in energy conservation can arise under following circumstances
• For new equipment, process improvements etc.
• To provide staff training
• To implement or upgrade the energy information system

Criteria
Any investment has to be seen as an addition and not as a substitute for having effective man-
agement practices for controlling energy consumption throughout your organization.
Spending money on technical improvements for energy management cannot compensate for
inadequate attention to gaining control over energy consumption. Therefore, before you make any
investments, it is important to ensure that
 • You are getting the best performance from existing plant and equipment
• Your energy charges are set at the lowest possible tariffs
• You are consuming the best energy forms - fuels or electricity - as efficiently as possi-
ble
• Good housekeeping practices are being regularly practiced.
When listing investment opportunities, the following criteria need to be considered:
• The energy consumption per unit of production of a plant or process
• The current state of repair and energy efficiency of the building design, plant and ser-
vices, including controls
• The quality of the indoor environment - not just room temperatures but indoor air qual-
ity and air change rates, drafts, under and overheating including glare, etc.
• The effect of any proposed measure on staff attitudes and behaviour.

Energy Proposals Vs Other Competitive Proposals

One of the most difficult problems which many energy managers face is justifying why their
organization should invest money in increasing its energy efficiency, especially when there are
other, seemingly more important priorities for the use of its capital.
• Organization typically give priority to investing in what they see as their core or profit-
making activities in preference to energy efficiency
• Even when they do invest in saving energy, they tend to demand faster rates of return
than they require from other kinds of investment.
Investment Appraisal
Energy manager has to identify how cost savings arising from energy management could be
redeployed within his organization to the maximum effect. To do this, he has to work out how
benefits of increased energy efficiency can be best sold to top management as,
• Reducing operating /production costs
• Increasing employee comfort and well-being
• Improving cost-effectiveness and/or profits
• Protecting under-funded core activities
• Enhancing the quality of service or customer care delivered
• Protecting the environment

3. Financial Analysis
In most respects, investment in energy efficiency is no different from any other area of finan-
cial management. So when your organization first decides to invest in increasing its energy effi-
ciency it should apply exactly the same criteria to reducing its energy consumption as it applies
to all its other investments. It should not require a faster or slower rate of return on investment
in energy efficiency than it demands elsewhere.
The basic criteria for financial investment appraisal include:
• Simple Payback - a measure of how long it will be before the investment makes money,
and how long the financing term needs to be
• Return on Investment (ROI) and Internal Rate of Return (IRR) -measure that allow
 comparison with other investment options
• Net Present Value (NPV) and Cash Flow - measures that allow financial planning of
the project and provide the company with all the information needed to incorporate
energy efficiency projects into the corporate financial system.
Initially, when you can identify no or low cost investment opportunities, this principle
should not be difficult to maintain. However, if your organization decides to fund a rolling pro-
gram of such investments, then over time it will become increasingly difficult for you to iden-
tify opportunities, which conform to the principle. Before you'll reach this position, you need
to renegotiate the basis on which investment decisions are made.
It may require particular thoroughness to ensure that all the costs and benefits arising are
taken into account. As an approximate appraisal, simple payback (the total cost of the measure
divided by the annual savings arising from it expressed as years required for the original invest-
ment to be returned) is a useful tool.
As the process becomes more sophisticated, financial criteria such as Discounted Cash
Flow, Internal Rate of Return and Net Present Value may be used. If you do not possess suffi-
cient financial expertise to calculate these yourself, you will need to ensure that you have
access, either within your own staff or elsewhere within the organization, to people who can
employ them on your behalf.
There are two quite separate grounds for arguing that, at least long after their payback peri-
ods. Such measure does not need to be written off using fast discounting rates but can be regard-
ed as adding to the long term value of the assets. For this reason, short term payback can be an
inadequate yardstick for assessin long after their payback periods. Such measure does not need
to be written off using fast discounting rates but can be regarded as adding to the long term
value of the assets. For this reason, short term payback can be an inadequate yardstick for
assessing longer term benefits. To assess the real gains from investing in saving energy, you
should use investment appraisal techniques, which accurately reflect the longevity of the returns
on particular types of technical measures.
Protecting Energy Investment
It is essential to keep a careful watch on your organization's maintenance policy and practices
in order to protect any investment already made in reducing your organization's energy con-
sumption. There is a clear dependence relationship between energy efficiency and maintenance.
This operates at two levels:

•Initially, improving energy efficiency is most cost-effectively done in existing facilities

through normal maintenance procedures
•Subsequently, unless maintenance is regularly undertaken, savings from installed tech- nical
measure, whether in new-build or existing facilities, may not be realized.
6.4 Financial Analysis Techniques
In this chapter, investment analysis tools relevant to energy management projects will be
discussed.

6.4.1 Simple Pay Back Period:

Simple Payback Period (SPP) represents, as a first approximation; the time (number of years)
required to recover the initial investment (First Cost), considering only the Net Annual Saving:
The simple payback period is usually calculated as follows:

Examples
First cos t
Simple payback period =
Yearlybenefits − Yearly cos ts
Simple payback period for a continuous Deodorizer that costs Rs.60 lakhs to purchase and
install, Rs.1.5 lakhs per year on an average to operate and maintain and is expected to save Rs.
20 lakhs by reducing steam consumption (as compared to batch deodorizers), may be calculat-
ed as follows:
According to the payback criterion, the shorter the payback period, the more desirable the pro-
60
Simple payback period = = 3 years 3months
20 −1.5
ject.

Advantages
A widely used investment criterion, the payback period seems to offer the following advantages:

• It is simple, both in concept and application. Obviously a shorter payback generally indi-
cates a more attractive investment. It does not use tedious calculations.
• It favours projects, which generate substantial cash inflows in earlier years, and dis-
criminates against projects, which bring substantial cash inflows in later years but not in
earlier years.
Limitations
• It fails to consider the time value of money. Cash inflows, in the payback calculation, are
simply added without suitable discounting. This violates the most basic principle of
financial analysis, which stipulates that cash flows occurring at different points of time
can be added or subtracted only after suitable compounding/discounting.
• It ignores cash flows beyond the payback period. This leads to discrimination against
projects that generate substantial cash inflows in later years.
To illustrate, consider the cash flows of two projects, A and B:
The payback criterion prefers A, which has a payback period of 3 years, in comparison to B,

which has a payback period of 4 years, even though B has very substantial cash inflows in years
5 and 6.
• It is a measure of a project's capital recovery, not profitability.
• Despite its limitations, the simple payback period has advantages in that it may be use-
ful for evaluating an investment.
Time Value of Money
A project usually entails an investment for the initial cost of installation, called the capital cost,
and a series of annual costs and/or cost savings (i.e. operating, energy, maintenance, etc.)
throughout the life of the project. To assess project feasibility, all these present and future cash
flows must be equated to a common basis. The problem with equating cash flows which occur
at different times is that the value of money changes with time. The method by which these var-
ious cash flows are related is called discounting, or the present value concept.
For example, if money can be deposited in the bank at 10% interest, then a Rs.100 deposit
will be worth Rs.110 in one year's time. Thus the Rs.110 in one year is a future value equiva-
lent to the Rs.100 present value.
In the same manner, Rs.100 received one year from now is only worth Rs.90.91 in today's
money (i.e. Rs.90.91 plus 10% interest equals Rs.100). Thus Rs.90.91 represents the present
value of Rs.100 cash flow occurring one year in the future. If the interest rate were something
different than 10%, then the equivalent present value would also change. The relationship
between present and future value is determined as follows:
Future Value (FV) = NPV (1 + i)n or NPV = FV / (1+i)n
Where
FV = Future value of the cash flow
NPV= Net Present Value of the cash flow
i = Interest or discount rate
n = Number of years in the future

6.4.2 Return on Investment (ROI)

ROI expresses the "annual return" from the project as a percentage of capital cost. The annual
return takes into account the cash flows over the project life and the discount rate by convert-
ing the total present value of ongoing cash flows to an equivalent annual amount over the life
of the project, which can then be compared to the capital cost. ROI does not require similar pro-
ject life or capital cost for comparison.
This is a broad indicator of the annual return expected from initial capital investment,
expressed as a percentage:

Annual Net Cash Flow

ROI = x 100
Capital Cost

ROI must always be higher than cost of money (interest rate); the greater the return on invest-
ment better is the investment.
Limitations
• It does not take into account the time value of money.
• It does not account for the variable nature of annual net cash inflows.

6.4.3 Net Present Value

The net present value (NPV) of a project is equal to the sum of the present values of all the cash
flows associated with it. Symbolically,

Where NPV = Net Present Value

CFt = Cash flow occurring at the end of year 't' (t=0,1,….n) n
= life of the project
k = Discount rate
The discount rate (k) employed for evaluating the present value of the expected future cash
flows should reflect the risk of the project.
Example
To illustrate the calculation of net present value, consider a project, which has the following
cash flow stream:

The cost of capital, , for the firm is 10 per cent. The net present value of the proposal is:

The net present value represents the net benefit over and above the compensation for time and
risk.
Hence the decision rule associated with the net present value criterion is: "Accept the project if
the net present value is positive and reject the project if the net present value is negative".
Advantages
The net present value criterion has considerable merits.
• It takes into account the time value of money.
• It considers the cash flow stream in its project life.

6.4.4 Internal Rate of Return

This method calculates the rate of return that the investment is expected to yield. The internal
rate of return (IRR) method expresses each investment alternative in terms of a rate of return (a
compound interest rate). The expected rate of return is the interest rate for which total dis-
counted benefits become just equal to total discounted costs (i.e net present benefits or net annu-
al benefits are equal to zero, or for which the benefit / cost ratio equals one). The criterion for
selection among alternatives is to choose the investment with the highest rate of return.
The rate of return is usually calculated by a process of trial and error, whereby the net cash
flow is computed for various discount rates until its value is reduced to zero.
The internal rate of return (IRR) of a project is the discount rate, which makes its net pre-
sent value (NPV) equal to zero. It is the discount rate in the equation:

where CFt = cash flow at the end of year "t"

k = discount rate
n = life of the project.

CFt value will be negative if it is expenditure and positive if it is savings.

In the net present value calculation we assume that the discount rate (cost of capital) is known
and determine the net present value of the project. In the internal rate of return calculation, we
set the net present value equal to zero and determine the discount rate (internal rate of return),
which satisfies this condition.
To illustrate the calculation of internal rate of return, consider the cash flows of a project:

The internal rate of return is the value of "  " which satisfies the following equation:

The calculation of "k" involves a process of trial and error. We try different values of "k" till we
find that the right-hand side of the above equation is equal to 100,000. Let us, to begin with,
try k = 15 per cent. This makes the right-hand side equal to:

Bureau of Energy Efficiency 136

 30,000 30,000 40,000 45,000
+ + + = 100, 802
(1.15) (1.15)2 (1.15)3 (1.15)4
This value is slightly higher than our target value, 100,000. So we increase the value of k from
15 per cent to 16 per cent. (In general, a higher k lowers and a smaller k increases the right-
hand side value). The right-hand side becomes:
30,000 30,000 40,000 45,000
+ + + = 98, 641
(1.16) (1.16)2 (1.16)3 (1.16)4
Since this value is now less than 100,000, we conclude that the value of k lies between 15
per cent and 16 per cent. For most of the purposes this indication suffices.
Advantages
A popular discounted cash flow method, the internal rate of return criterion has several advan-
tages:
• It takes into account the time value of money.
• It considers the cash flow stream in its entirety.
• It makes sense to businessmen who prefer to think in terms of rate of return and find an
absolute quantity, like net present value, somewhat difficult to work with.
Limitations
• The internal rate of return figure cannot distinguish between lending and borrowing and
hence a high internal rate of return need not necessarily be a desirable feature.
Example
Calculate the internal rate of return for an economizer that will cost Rs.500,000, will last 10
years, and will result in fuel savings of Rs.150,000 each year.
Find the i that will equate the following:
Rs.500,000 = 150,000 x PV (A = 10 years, i = ?)
To do this, calculate the net present value (NPV) for various i values, selected by visual inspec-
tion;

NPV 25% = Rs.150,000 x 3.571 - Rs.500,000

= Rs.35,650

NPV 30% = Rs.150,000 x 3.092 - Rs. 500,000

= -Rs. 36,200
For i = 25 per cent, net present value is positive; i = 30 per cent, net present value is negative.
Thus, for some discount rate between 25 and 30 per cent, present value benefits are equated to
present value costs. To find the rate more exactly, one can interpolate between the two rates as
follows:
i = 0.25 + (0.30-0.25) x 35650 / (35650 + 36200)
= 0.275, or 27.5 percent
Cash Flows
Generally there are two kinds of cash flow; the initial investment as one or more installments,
and the savings arising from the investment. This over simplifies the reality of energy manage-
ment investment.
There are usually other cash flows related to a project. These include the following:
• Capital costs are the costs associated with the design, planning, installation and com-
missioning of the project; these are usually one-time costs unaffected by inflation or dis-
count rate factors, although, as in the example, installments paid over a period of time
will have time costs associated with them.
• Annual cash flows, such as annual savings accruing from a project, occur each year over
the life of the project; these include taxes, insurance, equipment leases, energy costs, ser-
vicing, maintenance, operating labour, and so on. Increases in any of these costs repre-
sent negative cash flows, whereas decreases in the cost represent positive cash flows.
Factors that need to be considered in calculating annual cash flows are:-
• Taxes, using the marginal tax rate applied to positive (i.e. increasing taxes) or negative
(i.e. decreasing taxes) cash flows.
• Asset depreciation, the depreciation of plant assets over their life; depreciation is a
"paper expense allocation" rather than a real cash flow, and therefore is not included
directly in the life cycle cost. However, depreciation is "real expense" in terms of tax
calculations, and therefore does have an impact on the tax calculation noted above. For
example, if a Rs.10,00,000 asset is depreciated at 20% and the marginal tax rate is 40%,
the depreciation would be Rs.200,000 and the tax cash flow would be Rs.80,000 and it
is this later amount that would show up in the costing calculation.
• Intermittent cash flows occur sporadically rather than annually during the life of the pro-
ject, relining a boiler once every five years would be an example.

6.5 Sensitivity and Risk Analysis

Many of the cash flows in the project are based on assumptions that have an element of uncer-
tainty. The present day cash flows, such as capital cost, energy cost savings, maintenance costs,
etc can usually be estimated fairly accurately. Even though these costs can be predicted with
some certainty, it should always be remembered that they are only estimates. Cash flows in
future years normally contain inflation components which are often "guess-timates" at best. The
project life itself is an estimate that can vary significantly.
Sensitivity analysis is an assessment of risk. Because of the uncertainty in assigning values
to the analysis, it is recommended that a sensitivity analysis be carried out - particularly on pro-
jects where the feasibility is marginal. How sensitive is the project's feasibility to changes in the
input parameters? What if one or more of the factors in the analysis is not as favourable as pre-
dicted? How much would it have to vary before the project becomes unviable? What is the prob-
ability of this happening?
Suppose, for example, that a feasible project is based on an energy cost saving that escalates
at 10% per year, but a sensitivity analysis shows the break-even is at 9% (i.e. the project
becomes unviable if the inflation of energy cost falls below 9%). There is a high degree of risk
associated with this project - much greater than if the break-even value was at 2%.
Many of the computer spreadsheet programs have built-in "what if" functions that make sensi-
tivity analysis easy. If carried out manually, the sensitivity analysis can become laborious -
reworking the analysis many times with various changes in the parameters.
Sensitivity analysis is undertaken to identify those parameters that are both uncertain and
for which the project decision, taken through the NPV or IRR, is sensitive. Switching values
showing the change in a variable required for the project decision to change from acceptance to
rejection are presented for key variables and can be compared with post evaluation results for
similar projects. For large projects and those close to the cut-off rate, a quantitative risk analy-
sis incorporating different ranges for key variables and the likelihood of their occurring simul-
taneously is recommended. Sensitivity and risk analysis should lead to improved project design,
with actions mitigating against major sources of uncertainty being outlined
The various micro and macro factors that are considered for the sensitivity analysis are list-
ed below.
Micro factors
• Operating expenses (various expenses items)
• Capital structure
• Costs of debt, equity
• Changing of the forms of finance e.g. leasing
• Changing the project duration

Macro factors
Macro economic variables are the variable that affects the operation of the industry of which the
firm operates. They cannot be changed by the firm's management.
Macro economic variables, which affect projects, include among others:
• Changes in interest rates
• Changes in the tax rates
• Changes in the accounting standards e.g. methods of calculating depreciation
• Changes in depreciation rates
• Extension of various government subsidized projects e.g. rural electrification
• General employment trends e.g. if the government changes the salary scales
• Imposition of regulations on environmental and safety issues in the industry
• Energy Price change
• Technology changes
The sensitivity analysis will bring changes in various items in the analysis of financial state-
ments or the projects, which in turn might lead to different conclusions regarding the imple-
mentation of projects.

6.6 Financing Options

There are various options for financing in-house energy management

1. From a central budget

2. From a specific departmental or section budget such as engineering
3. By obtaining a bank loan
4. By raising money from stock market
5. By awarding the project to Energy Service Company (ESCO)
6. By retaining a proportion of the savings achieved.
Self-Financing Energy Management
One way to make energy management self-financing is to split savings to provide identifiable
returns to each interested party. This has the following benefits:
• Assigning a proportion of energy savings to your energy management budget means you
have a direct financial incentive to identify and quantify savings arising from your own
activities.
• Separately identified returns will help the constituent parts of your organization under-
standing whether they are each getting good value for money through their support for
energy management.
• If operated successfully, splitting the savings will improve motivation and commitment
to energy management throughout the organization since staff at all levels will see a
financial return for their effort or support.
• But the main benefit is on the independence and longevity of the energy management
function.
Ensuring Continuity
After implementation of energy savings, your organization ought to be able to make consider-
able savings at little cost (except for the funding needed for energy management staff). The
important question is what should happen to these savings?
If part of these easily achieved savings is not returned to your budget as energy manager,
then your access to self-generated investments funds to support future activities will be lost.
And later in the program, it is likely to be much harder for you to make savings.
However, if, an energy manager, has access to a proportion of the revenue savings arising
from staff's activities, then these can be reinvested in:
• Further energy efficiency measures
• Activities necessary to create the right climate for successful energy management which
do not, of themselves, directly generate savings
• Maintaining or up-grading the management information system.

Energy Performance Contracting and Role of ESCOS

If the project is to be financed externally, one of the attractive options for many organizations
is the use of energy performance contracts delivered by energy service companies, or ESCOs.
ESCOs are usually companies that provide a complete energy project service, from assess-
ment to design to construction or installation, along with engineering and project management
services, and financing. In one way or another, the contract involves the capitalization of all of
the services and goods purchased, and repayment out of the energy savings that result from the
project.
In performance contracting, an end-user (such as an industry, institution, or utility), seeking
to improve its energy efficiency, contracts with ESCO for energy efficiency services and financ-
ing.
In some contracts, the ESCOs provide a guarantee for the savings that will be realized, and
absorbs the cost if real savings fall short of this level. Typically, there will be a risk manage-
ment cost involved in the contract in these situations. Insurance is sometimes attached, at a cost,
to protect the ESCO in the event of a savings shortfall.
Energy efficiency projects generate incremental cost savings as opposed to incremental rev-
enues from the sale of outputs. The energy
cost savings can be turned into incremental
cash flows to the lender or ESCO based on
the commitment of the energy user (and in
some cases, a utility) to pay for the savings.
What are performance contracts?
Performance contracting represents one of
the ways to address several of the most fre-
quently mentioned barriers to investment.
Performance contracting through an ESCO
transfers the technology and management
risks away from the end-user to the ESCO.
For energy users reluctant to invest in
energy efficiency, a performance contract
can be a powerful incentive to implement a
project. Performance contracting also mini-
mizes or eliminates the up-front cash outlay
required by the end-user. Payments are
made over time as the energy savings are
realized.

Figure 6.1 ESCO Role

141