Energy Conservation & Audit

Unit 1: Energy Conservation Basics

1.1 Energy Scenario: Primary and Secondary Energy, Energy

Demand and Supply, National Scenario -

1.1.1 Primary and Secondary Energy -

Primary Energy - Primary Energy refers to sources energy that are in their natural
forms and have not been subjected to any human-made conversion or transformation
processes. It is the raw renewable or non-renewable energy available in the environment
and can be directly extracted or captured from the environment. Examples of Primary
energy include - natural gas, biomass, coal, crude oil, wind energy, hydropower, solar
radiation and uranium (for nuclear energy).
Secondary Energy - Secondary Energy is the energy that is produced by converting
primary energy into a more useful form. These are not found in nature but are generated
through transformation processes to make them suitable for specific applications such as
transportation, heating, or industrial use. Examples of secondary energy include -
Electricity from power plants coal, Petroleum products from refining crude oil, processed
biofuels, and hydrogen based fuel.
Renewable Energy - Renewable Energy sources are those that replenish themselves
naturally and are sustainable over the long term. Unlike fossil fuels, which are finite
resources that take millions of years to form, renewable energy sources are essentially
inexhaustible on a human timescale. These sources offer a sustainable and
environmentally friendly alternative to fossil fuels. Examples of Renewable energy
sources include solar power, wind power, hydroelectric power, bioenergy, and
geothermal energy.
Non-Renewable Energy - Non-Renewable Energy refers to sources of energy that are
finite and cannot be replenished at a rate comparable to their consumption. These
resources are typically formed over millions of years through geological processes. Once
used, they are essentially gone on a human timescale. Examples of Non-renewable
resources include fossil fuels like coal, oil, and natural gas, as well as nuclear fuels like
uranium.
1.1.2 Energy Demand & Supply –

Energy demand and supply represent the quantity of energy desired by consumers and
the quantity available, respectively, in a specific market. The interaction between these
two forces determines energy prices and availability.
Energy Demand - Energy demand is the total amount of energy required by various
sectors such as residential, industrial, commercial, and transportation. It is influenced by
factors like economic growth, population size, urbanization, technology, seasonal
variations, and government policies. For example, increasing industrial activity or the
use of electric vehicles raises demand, while energy-efficient appliances and higher
energy prices can reduce it.
Energy Supply - Energy supply refers to the amount of energy produced and made
available from sources like fossil fuels, renewables, and nuclear power. It includes
extraction, conversion, and distribution processes. Supply depends on resource
availability, infrastructure, technology, and geopolitical conditions. A stable and diverse
energy supply is essential to meet demand and ensure economic and energy security.

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Per Capita Consumption -

Per capita consumption of electricity refers to the average amount of electricity

consumed by each person in a specific region or country over a given period, typically a
year. It is calculated by dividing the total electricity consumption of that region or
country by its total population and usually expressed in terms of kilowatt-hours per
person per year (kWh/person/year). The formula for per capita electricity consumption is
given by

Total Electricity Consumption

Per Capita Electricity Consumption=
Total Population

1.1.3 National Energy Scenario of India -

India's energy landscape has undergone significant transformations, marked by rapid

growth in both demand and supply driven by economic expansion, and increase in
population. Alongside the rapid growth gives pronounced shift towards renewable
energy sources like solar, wind, and biomass to meet rising demand sustainably. As of
March 31, 2025, India’s total installed electricity generation capacity reached
approximately 475.21 GW. Among the various sources such as,

Coal continues to dominate with a share of 46.68% to India's electricity generation. In FY

2024–25, coal-based plants produced 1,294.85 Billion Units of electricity. As the world’s
fourth-largest coal and lignite producer, India crossed 1 billion tonnes in domestic coal
output, aiming to reduce imports and strengthen energy security.

India has made major progress in expanding its renewable energy alongside its
continued reliance on coal. As of early 2025, renewable energy capacity (excluding large
hydro) reached 167.7 GW, led by solar power, which crossed 100 GW up from just 2.82
GW in 2014. In 2024 alone, 24.5 GW of solar capacity was added, showing strong
momentum in clean energy adoption. Solar now contributes about 47% of total
renewable capacity and nearly 70% of renewable power generation (excluding large
hydro).

Hydropower, with an installed capacity of 46.92 GW contributing roughly 11% to the

total power capacity has seen declining output, falling to just 8.3% of total electricity
generation in 2023–24, despite India’s estimated 149 GW potential. Challenges such as
environmental and resettlement issues hinder its growth.

Wind power remains significant, with 50 GW of installed capacity, making India the
fourth-largest producer globally. It accounts for about 10% of the total capacity and
generated 71.814 TWh in 2022–23, mainly from states like Gujarat, Tamil Nadu, and
Maharashtra.

India’s total non-fossil fuel capacity, including large hydro, reached 217.62 GW by early
2025. The government targets 500 GW of non-fossil capacity by 2030 and aims for
net-zero emissions by 2070. Despite progress, challenges remain in meeting growing
demand, integrating renewables, reducing fossil fuel imports, and ensuring equitable
access. The national energy scenario reflects India’s complex but steady transition
toward a cleaner, more secure energy future.

National Energy Scenario of India – in Short

India's energy landscape is rapidly evolving, driven by economic growth and rising
population. As of March 31, 2025, the total installed power capacity reached 475.21

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GW. Coal remains the leading source, contributing 46.68% and generating 1,294.85
Billion Units in FY 2024–25. Domestic coal production crossed 1 billion tonnes, reducing
import reliance.
Renewable energy is growing steadily. By early 2025, non-hydro renewables reached
167.7 GW, with solar leading at over 100 GW-up from 2.82 GW in 2014. Solar now
accounts for nearly 70% of renewable electricity generation. Wind power contributes 50
GW, mainly from states like Gujarat and Tamil Nadu.
Hydropower stands at 46.92 GW but has declined in output, now contributing only 8.3%
to generation. Total non-fossil capacity, including hydro, reached 217.62 GW. India aims
for 500 GW by 2030 and net-zero emissions by 2070. Despite progress, challenges
remain in demand growth, renewable integration, and equitable energy access.
Maharashtra Energy Development Agency -

Maharashtra Energy Development Agency (MEDA) functions as a nodal agency in

Maharashtra, promoting renewable energy and energy conservation. It also serves
as the designated agency for implementing the Energy Conservation Act and related
schemes within the state.
Functions of Maharashtra Energy Development Agency (MEDA) -
1. Promote and Develop Renewable Energy - MEDA actively works to promote,
develop, and implement projects utilizing non-conventional, renewable, and alternate
energy sources and technologies in Maharashtra. This includes solar, wind, biomass,
and small hydro power.
2. Facilitate Energy Conservation - MEDA takes concrete steps to encourage and
implement conventional energy conservation measures across various sectors,
including industries, commercial establishments, and residential areas within
Maharashtra.
3. Assist Government Initiatives - MEDA assists both the Government of India and
the Government of Maharashtra in the implementation of renewable energy
programs and policies within the state.
4. Address Energy Demand - MEDA aims to evolve suitable alternatives and solutions
to meet the increasing energy demands of the state through sustainable means.
5. Information and Awareness - MEDA disseminates information and raises public
awareness about renewable energy and energy conservation through training
programs, publications, exhibitions, seminars, and conferences.
6. Support Decentralized Renewable Energy - MEDA supports the large-scale
distribution and marketing of stand-alone renewable energy devices by participating
in field viability studies and commercialization efforts through innovative financing
mechanisms and investment opportunities.

1.2 Energy Conservation and Energy Audit – Concept, Need and

Difference

1.2.1 Energy Conservation and Energy Audit -

Energy Conservation - Energy conservation refers to the practice of to reduce the

consumption of energy. It involves using less energy for the same service, using devices
that require less energy, or reducing the demand for energy services altogether. This
can be achieved through various means, including using energy-efficient devices and
utilizing renewable energy sources.
Energy Audit - An energy audit is a systematic inspection, survey, and analysis of
energy flows and energy consumption in a building, industry, process, or any system.

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The purpose of an energy audit is to identify opportunities for energy conservation and
efficiency improvements, and to recommend cost-effective measures to reduce energy
consumption without negatively affecting output, comfort, or safety.

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Need for Energy Conservation & Audit -

1. Reducing Emissions & Carbon Footprint - Energy conservation directly lowers

the demand for energy, especially from fossil fuels. This leads to fewer greenhouse
gas emissions and a smaller overall carbon footprint.
2. Reduced Energy Costs - Using less energy in the context of conservation translates
to lower utility bills for individuals and organizations. Energy audits pinpoint
inefficiencies and recommend cost-effective measures to achieve these savings.
3. Preservation of Resources - Non-renewable energy sources are finite. Energy
conservation extends their lifespan, ensuring availability for future generations.
Energy audits highlight areas of unnecessary consumption, guiding efforts to
preserve these valuable resources.
4. Identifying Energy Waste - Energy audits systematically analyze energy usage to
pinpoint where energy is being used inefficiently or unnecessarily.
5. Pinpointing Energy Saving Opportunities (ESOs) - Energy audits specifically
recommend actionable steps (ESOs) to reduce energy consumption.
6. Reducing Operational Costs - Implementing energy conservation measures
identified through audits directly lowers the expenses associated with energy
consumption for businesses and industries, improving profitability and
competitiveness.

Difference between Energy Conservation and Energy Audis -

Feature Energy Conservation Energy Audit

It is a systematic process of analyzing
It refers to the practice of reducing energy
Definition energy flows in a system to identify
consumption through efficient usage.
conservation opportunities.
Focuses on reducing energy usage by Focuses on evaluating energy use,
Objective adopting better habits or using efficient identifying losses, and suggesting
equipment. improvements.
Nature Continuous and proactive process. Periodic and analytical process.
Involves behavioral changes, upgrading
Involves data collection, measurements,
Approach equipment and adopting efficient
and analysis of current energy usage.
technologies.
Lower energy bills and reduced environmental Detailed report with recommendations for
Outcome
impact. energy efficiency.
Requires specialized knowledge and trained
Requirement May not require technical expertise.
personnel.
Switching off unused equipment, using LED Measuring power consumption of equipment,
Examples
bulbs. detecting inefficiencies in systems.

1.3 Indian Electricity Act 2003; Relevant Clauses of Energy

Conservation

Important Clauses of the Indian Electricity Act, 2003 -

The Electricity Act, 2003 was introduced to promote efficiency, transparency, and
competition in the power sector. It integrates laws related to generation, transmission,
distribution, trading, and use of electricity. Below are its key clauses:

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1. Generation (Sections 7 & 8) - Electricity generation is de-licensed, meaning

anyone can set up a power plant (except for nuclear and large hydro projects)
without requiring a license, provided they comply with prescribed technical
standards.
2. Transmission (Sections 38 to 41) – Establishing Central and State Transmission
Utilities (CTUs and STUs) and assigning them responsible for planning and operating
the power grid.
3. Distribution (Section 42) – This clause mandates “open access” in distribution,
allowing large consumers to buy electricity directly from power producers instead of
being tied to one Distribution Company.
4. Licensing (Sections 12 to 15) - A licenses requires for transmission, distribution,
and electricity trading. However, no license is needed for generating electricity for
one’s own use (captive generation), encouraging self-reliance in power generation.
5. Electricity Trading (Sections 12 & 52) - The Act recognizes electricity trading as a
distinct and licensed activity. It allows companies to obtain trading licenses, fostering
a competitive market and enabling efficient price discovery.
6. Tariff and Pricing (Sections 61 & 62) - Electricity tariffs and pricing are
determined by State and Central Electricity Regulatory Commissions (SERCs and
CERC). The objective is to balance consumer interests with the financial health of
utilities and ensure fair and transparent pricing.
7. Rural Electrification (Section 6) - The Act mandates that the government is
responsible for providing electricity to rural and remote areas, promoting inclusive
development and improving living standards.
8. Regulatory Commissions (Section 76-108) - The Act sets up independent bodies
like the CERC and SERCs to regulate tariffs, issue licenses, and resolve disputes.
These commissions ensure transparency and efficiency in the power sector.
9. Appellate Tribunal (Section 110) - The act establishes Appellate Tribunal for
Electricity (APTEL) to hear and resolve appeals against CERC and SERC decisions,
providing a legal platform for redressal and accountability.

Salient Features of the Indian Electricity Act, 2003 -

The Indian Electricity Act, 2003 was enacted to consolidate the laws relating to
generation, transmission, distribution, trading, and use of electricity in India. It aimed at
introducing reforms, enhancing efficiency, and promoting a competitive environment in
the electricity sector. The key features of Indian Electricity Act are,

1. Promotion of Competition - The Act promotes competition in electricity generation

and distribution. It allows multiple licensees in the same area, enabling consumers
to choose their service provider. This helps in improving service quality and reducing
tariffs through competitive practices.
2. Delicensing of Generation - One of the major reforms introduced by the Act is the
delicensing of electricity generation. Any person can set up a generating station
without requiring a license, except for nuclear and hydro projects which require
clearance from the Central Electricity Authority (CEA).
3. Open Access in Transmission and Distribution - The Act introduces the concept
of open access, which allows bulk consumers (with a load of 1 MW or more) to
purchase electricity directly from any generator or trader by paying a wheeling
charge to the transmission and distribution utility. This creates a level-playing field
for power trading and enhances consumer choice.
4. Unbundling of State Electricity Boards (SEBs) - To improve efficiency and
accountability, the Act encourages the restructuring of State Electricity Boards

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(SEBs) into separate entities for generation, transmission, and distribution.

This unbundling promotes specialization and transparency in operations.
5. Establishment of Regulatory Commissions - The Act mandates the setting up of
Central Electricity Regulatory Commission (CERC) and State Electricity
Regulatory Commissions (SERCs). These are responsible for - tariff regulation,
licensing, promoting competition, and ensuring fair play among stakeholders.
6. Tariff Rationalization - The Act empowers regulatory commissions to determine
tariffs for generation, transmission, and distribution of electricity. It aims to reduce
cross-subsidies gradually and ensure that tariffs are cost-reflective and
transparent.
7. Provision for Renewable Energy - The Act encourages promotion of renewable
energy sources such as solar, wind, and biomass. Regulatory commissions are
required to specify a minimum percentage of power to be purchased from
renewable sources, promoting sustainable development.
8. Power Trading - The Act recognizes electricity trading as a distinct activity and
allows trading licenses to be issued. This creates a market-driven mechanism for
price discovery and enhances liquidity in the power sector.
9. Consumer Protection and Grievance Redressal – The Act emphasizes consumer
rights by mandating standards of performance for licensees. It provides for the
appointment of Ombudsman and establishment of Consumer Grievance
Redressal Forums (CGRFs) to address consumer complaints effectively.
10. Penalties and Offences - Provisions for penalties and legal action against
unauthorized use of electricity, theft, and damage to electrical equipment are
included to curb malpractices and enhance accountability.

1.4 BEE and Its Roles in Energy Conservation

The Bureau of Energy Efficiency (BEE) is a statutory body established by the

Government of India under the Energy Conservation Act, 2001, which came into
force on 1st March 2002. Its works under the Ministry of Power and its primary aim
is to promote energy efficiency and conservation across all sectors of the economy,
thereby reducing energy intensity and environmental impacts.
1.4.1 Objectives of Bureau of Energy Efficiency (BEE) -

The key objectives of the BEE are,

 To reduce the energy intensity of the Indian economy.

 To develop policies and strategies for energy efficiency and conservation.
 To promote energy-efficient technologies and practices across sectors.
 To implement energy efficiency standards and labeling programs.
 To raise public awareness about the importance of energy conservation.
 To facilitate capacity building and training for energy professionals.
 To support and promote energy auditing and certification.
 To encourage market-based mechanisms like PAT for industrial energy savings.
 To formulate policies and programs for efficient use of energy and its conservation.
 To coordinate with designated consumers, designated agencies, and other
organizations for implementing energy efficiency measures.
 To identify and develop energy efficiency improvement projects.
 To strengthen the delivery mechanism for energy efficiency services in the country.

1.4.2 Major Roles and Functions of BEE in Energy Conservation -

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1. Formulating Policies and Regulations - BEE develops national policies and

programs aimed at enhancing energy efficiency. It plays a crucial role in
recommending energy-saving measures and standards to various sectors including
industry, transport, agriculture, and commercial buildings.
2. Standard & Labeling Program - The Standards and Labeling Program the
guidance of BEE ensures that electrical appliances like air conditioners, refrigerators,
fans, and more are rated based on their energy efficiency. The BEE star label helps
consumers choose energy-efficient products, thereby reducing overall energy
consumption.
3. Energy Conservation Building Code (ECBC) - BEE has developed the Energy
Conservation Building Code, which sets minimum energy efficiency standards for
new commercial buildings to reducing the energy consumption of buildings through
optimized designs and technologies.
4. Perform, Achieve and Trade (PAT) Scheme - The PAT scheme is a market-based
mechanism developed by BEE to improve energy efficiency in large energy-intensive
industries. It allows trading of energy-saving certificates between entities (industries)
that have achieved their targets and those who are unable to meet them.
5. Demand Side Management (DSM) - BEE promotes Demand Side Management
programs to reduce the peak load and overall energy consumption by promoting
energy-efficient appliances, industrial practices, and agricultural pumps.
6. Energy Efficiency Financing - BEE works with financial institutions to create
models for financing energy efficiency projects. It supports the development of
ESCOs (Energy Service Companies) and helps create Energy Performance
Contracting mechanisms.
7. Capacity Building and Awareness - BEE conducts regular training programs,
workshops, and campaigns to build capacity among professionals, industries, and
institutions. It also runs public awareness campaigns to encourage energy-saving
behavior among consumers.
8. Support to State Designated Agencies (SDAs) - BEE supports SDAs in every
state to implement energy conservation programs at the regional level. It provides
technical and financial assistance to strengthen their capacity.
9. Small and Medium Enterprises (SME) Program - BEE also works with SMEs to
improve their energy efficiency. Many SMEs lack the knowledge or resources to adopt
energy-saving methods. BEE supports them through technical assistance,
demonstration projects, and awareness programs.
10.Energy Efficiency in Transport - BEE promotes energy-efficient practices in the
transport sector as well. It works with automobile manufacturers and stakeholders to
improve vehicle fuel efficiency and encourage use of public transport.
11.National Mission on Enhanced Energy Efficiency (NMEEE) - Under the National
Action Plan on Climate Change, BEE leads the NMEEE, which includes four initiatives -
PAT, Market Transformation for Energy Efficiency (MTEE), Energy Efficiency Financing
Platform (EEFP), and Framework for Energy Efficient Economic Development (FEEED).

1.5 Star Labelling: Concept, Need and Its Benefits

Star Labelling is a program initiated by the Bureau of Energy Efficiency (BEE) board
under the Ministry of Power, Government of India, to promote energy efficiency in
electrical appliances. It involves assigning a star rating, starting from 1 star to 5 stars
to appliances based on their energy consumption. Where 5 stars indicating the most
energy-efficient and 1 star indicating the least energy-efficient. It helps
consumers to identify energy saving electrical appliances when purchasing them and its
contributes to reducing overall energy consumption, and electricity bills.

1.5.1 Need for Star Labeling -

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1. Reducing Overall Energy Consumption - With the rise in the use of electrical
appliances in homes, offices, and industries, the demand for electricity has grown
significantly. Star labeling helps promote the use of energy-efficient products to
reduce overall energy consumption.
2. Consumer Awareness - Many consumers are unaware of how much energy their
appliances consume. Star labeling provides clear and easy-to-understand
information, helping buyers make informed decisions.
3. Reducing Electricity Bills - Appliances with higher star ratings consume less
power, leading to lower electricity bills for users.
4. Environmental Protection - Energy-efficient appliances reduce the burning of fossil
fuels for electricity generation, which helps decrease greenhouse gas emissions and
combat climate change.
5. National Energy Security - Reduced energy demand through efficient appliances
lowers the pressure on power plants and imports, contributing to national energy
security.
6. Encouraging Manufacturers - Star labeling encourages manufacturers to design
and produce more energy-efficient products to stay competitive in the market.

1.5.2 Benefits of Star Labeling -

1. Energy Savings - Star-rated appliances use less energy, resulting in significant

savings over time for both households and businesses.
2. Cost Efficiency - Though higher-rated appliances may have a higher initial cost,
they pay back through reduced electricity bills, making them cost-effective in the
long run.
3. Easy Comparison - The star label provides a standard benchmark to compare the
energy efficiency of similar products from different brands.
4. Eco-Friendly Choice - Using energy-efficient appliances reduces carbon footprint
and helps protect the environment.
5. Government Recognition - Star labeling is a government-approved scheme,
increasing trust among consumers about the product’s performance and reliability.
6. Market Transformation - It shifts consumer preference towards energy-efficient
products, which drives innovation and improvement in appliance design.

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Unit 4: Energy Conservation through Co-generation and Tariff

Co-generation and Tariff – concept, significance for energy

conservation

4.2 Co-Generation System – Types of Cogeneration

Cogeneration System –

Cogeneration, also known as Combined Heat and Power (CHP), is the simultaneous
process of generating both electricity and useful thermal energy from a single source of
fuel source such as natural gas, biomass, coal, or oil. In a conventional power plant, a
large amount of energy is lost as waste heat. Instead of wasting the heat, the
cogeneration systems capture the waste heat and utilize it for applications like space
heating, water heating, industrial processes, even electricity generation thereby
increasing overall energy efficiency and reducing fuel consumption and emissions.

This leads to a significant improvement in overall energy efficiency—often reaching up to

80%—compared to the 30–40% efficiency of traditional power generation.
4.2.1 Types of Co-generation System -

Cogeneration systems can be classified by their primary energy usage (topping or

bottoming cycles), the type of prime mover used (e.g., gas turbine, engine, fuel cell),
and the type of fuel used (e.g., natural gas, biofuel). They can also be categorized
based on their size (e.g., micro-CHP, industrial CHP) and the types of energy they
produce (e.g., trigeneration for electricity, heat, and cooling).
Types of Co-generation System are,

Types of CHP

Based on the Based on the

sequence Technologies

Bottoming Reciprocating
Topping Cycle Steam Turbine Gas Turbine
Cycle Engine

Internal
Combine Cycle Steam Turbine Back Pressure Condensing Compressing
Combustion Gas Turbine Spark Engine
CHP CHP Turbine Turbine Signal
Engine

Open Cycle Closed Cycle

4.2.2 Cogeneration System Based on Sequence of Energy Use -

Topping Cycle –

The topping cycle in cogeneration prioritizes in electricity generation system to recover

the waste thermal energy. In generation system where fuel (like natural gas, diesel,

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biomass, or coal) is combusted to produce high-temperature, high-pressure steam or hot

gas. This energy is directed to a turbine connected to a generator to produce electricity.

After expansion through the turbine, the steam or gas still contains significant amount of
thermal energy, which is recovered using a heat recovery steam generator (HRSG) or used
directly for heating applications where the hot exhaust gases or low-pressure steam transfer their
heat to water, industrial processes, space heating. This approach significantly improves
overall efficiency by utilizing both electricity and waste heat from a single fuel source,
making the topping cycle the most common and efficient cogeneration method.
Bottoming Cycle –

A bottoming cycle in a cogeneration system prioritizes the production of high-

temperature heat for industrial processes such as those in cement, steel, ceramics, and
petrochemical industries. In this system, fuel is first combusted to provide thermal
energy required for operations such as melting, drying, or chemical reactions, typically
carried out in furnaces or kilns. Once the thermal energy has been used in the industrial
process the remaining heat which is at considerably high temperature is recovered using
a heat exchanger or recovery boiler. This recovered heat is then used to produce steam
or hot gases which drive a turbine connected to a generator to produce electricity. It’s
known as Waste Heat to Power (WHP), this system improves overall efficiency by
utilizing energy that would otherwise be wasted.
Bottoming cycles are less common than topping cycles due to the limited availability of
processes that demand very high initial heat input. However, they are highly efficient in
specific industrial settings because they make use of heat that would otherwise be lost.
4.2.3 Cogeneration System Based on Technology -

Steam Turbine Cogeneration System –

A steam turbine cogeneration system, also

known as a Combined Heat and Power (CHP)
system, is an energy-efficient method of
simultaneously producing electricity and
useful thermal energy, using steam
generated in a boiler to drive a turbine
connected to a generator. This process is
efficient because it leverages the waste heat
from electricity generation for industrial
processes or heating.
A boiler in the steam turbine burns fuel to
generate high-pressure steam, and the
steam is used to power the turbine and causes it to rotate. The rotating turbine is
connected to an electric generator, which produces electricity. The hot exhaust steam
gases from the turbine are not wasted simply unlike conventional power plants. The hot
exhaust steam gases which are still hot are passed through a Heat Recovery Unit such
as a Heat Recovery Steam Generator (HRSG) or a Waste heat boiler, where the
recovered heat can be used, absorption chillers produce steam, hot water, even for
production of electricity.
This dual-use of steam makes the system highly efficient. While traditional power plants
may have efficiency rates around 35-45%, steam turbine cogeneration systems can
achieve overall energy efficiency of 70–85% by utilizing what would otherwise be waste

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heat. This reduces fuel consumption, lowers operational costs, and cuts greenhouse gas
emissions, making it both economically and environmentally beneficial.

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Gas Turbine Cogeneration System –

A Gas Turbine Cogeneration System,

also called a Combined Heat and Power
(CHP) system, is a simultaneously
produces electricity and useful thermal
energy from a single fuel source,
typically natural gas. This system is
designed to improve overall energy
efficiency by utilizing waste heat that
would otherwise be lost in conventional
power generation.

A gas turbine works on the Brayton cycle, where ambient air is drawn into a
compressor, mixed with fuel and ignited in a combustion chamber. This result in
high-pressure, high-temperature gases produced in combustion and expand through a
gas turbine, which powers the generator to produce electricity.

Unlike conventional generation system the hot gases which is still hot around 500°C –
600°C are not simply wasted instead, they are passed through a Heat Recovery Unit
such as a Heat Recovery Steam Generator (HRSG) or a heat exchanger. The
recovered heat can be used to produce steam, hot water, or even for chilling through
absorption chillers.

This dual-generation system achieves overall efficiencies of 80–90%, much higher

than conventional methods, where electricity and heat are produced separately. This
results in reduced fuel usage, lower energy costs, and fewer greenhouse gas
emissions, making it ideal for industries, commercial complexes, and district
energy systems.

Reciprocating Engine Cogeneration System –

A reciprocating engine cogeneration system is a type of combined heat and power (CHP)
setup that uses an internal combustion engine (like a diesel or gas engine) to produce
both electricity and useful thermal energy from a single fuel source. The overall
efficiency of a reciprocating engine cogeneration system can reach 75–85%, which is
significantly higher than producing heat and power separately.
Reciprocating engine operates
on the Otto or Diesel cycle, in
which the fuel is combusted
inside the engine cylinders,
causing pistons to move back
and forth or reciprocate, and
converting thermal energy into
mechanical energy which used
to produce electricity through a
generator. The heat produce in
that process cogeneratively
recovered from two main
sources, Engine jacket cooling water, which absorbs heat from the engine block and
head, and Exhaust gases, which still carry significant thermal energy after powering the
engine. This recovered heat is captured using heat exchangers and can be used for
space heating, water heating, or process steam.

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These systems are widely used in small-scale industries, hospitals, commercial buildings,
and places where reliable local power and heat are both needed.
4.2.4 Factors governing the selection of cogeneration system –

1. Type and Quantity of Energy Demand - This refers to the specific forms and
amounts of electricity and thermal energy needed for operation. Understanding these
demands is fundamental for proper system sizing.
2. Heat-to-Power Ratio - This is the ratio of the thermal energy demand to the
electrical power demand. The ratio must closely align with the site's heat-to-power
needs for efficient operation.
3. Load Matching - The cogeneration system should aligned with the site’s load,
especially during peak hours. A proper load match avoids under or over production of
power or heat.
4. Fuel Availability and Cost - The accessibility, reliability, price and type of the
chosen fuel source are curtail for economic factors, technology and operating costs
for the long-term viability of the system.
5. Space and Infrastructure Requirements - Cogeneration units require adequate
physical space, ventilation, and structural support. Existing infrastructure should
support easy installation and integration.
6. Environmental and Regulatory Requirements - The system must comply with
local environmental norms for emissions, noise and environmental regulations is
mandatory for the chosen technology and fuel.
7. Scalability and Future Expansion - The system should be capable of expansion to
meet future increases in energy demand through expansion or upgrades in long-term
planning.

4.2.5 Advantages & Disadvantage of Co-Generation –

Advantages of Cogeneration -
1. High Efficiency - Cogeneration systems can reach overall efficiencies of up to 80–
90%, compared to around 50% for conventional separate heat and power systems.
2. Reduced Energy Costs - Improved efficiency results in lower fuel consumption and
significantly reduced energy bills.
3. Lower Emissions - Since less fuel is burned compared to separate production of
electricity and heat, emissions of CO₂ and other pollutants are reduced.
4. On-site Power Generation - Reduces transmission and distribution losses
associated with grid-supplied electricity.
5. Energy Security and Reliability - Provides continuous power during grid failures
(especially useful in critical facilities like hospitals and data centers).
6. Utilization of Waste Heat - Captures and uses heat that would otherwise be
wasted, maximizing the utility of fuel.
7. Fuel Flexibility - Can run on a variety of fuels including natural gas, biomass, coal,
and even waste products.
Disadvantages of Cogeneration -
1. High Initial Capital Cost - Installation and setup of cogeneration systems require
significant upfront investment.
2. Maintenance and Operation - Requires skilled personnel and regular maintenance
to ensure efficiency and safety.
3. Heat Demand Dependency - Efficiency benefits rely on having a consistent and
significant heat demand.
4. Space Requirements - Cogeneration units can take up more space than
conventional systems.

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 Energy Conservation & Audit

5. Limited Suitability for Small-scale Applications - It may not be economically

feasible for small buildings or facilities with low heat needs.
6. Environmental Concerns - Although more efficient, it still emits greenhouse gases
if not using renewable fuels.

4.3 Tariffs & Types of tariff structure

Definition of Tariff -

A tariff is the structured systematic method by which electricity distribution companies

charge consumers for their consumption of electrical energy. The cost is determined
based on various factors, such as the amount of energy consumed, the time of
consumption, the demand for electricity, fixed charges and it’s also includes Additional
charges or rebates. Tariffs can be designed in different ways to encourage efficient
energy use, manage peak demand, or promote energy conservation.

Application of Tariff System to Reduce Energy Bill

Energy conservation by improving load factor and power factor.

1. Define ' Demand side management and state its features? [3]
2. What is demand side management (DSM)? [2]
3. State key objectives of DSM. [2]
4. Factor (L.F.) on energy conservation? [3]
5. Define ' Demand side management and state its features? [4]
6. What are the purpose of introducing Energy cost and Recent WBSEB tariffs for
WBSEB. [4]
7. How energy can be conserved by improving load factor and power factor? [6]
8. What are the types of tariff system used by the supply authority? [2]
9. What are benefits of marking in energy consumption [5]

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 Energy Conservation & Audit

Unit 5: Energy Audit of Electrical System

5.1 Energy Audit (Definition as Per Energy Conservation Act)

As per the Energy Conservation Act, 2001 -

"Energy Audit" means the verification, monitoring and analysis of use of energy
including submission of technical report containing recommendations for improving
energy efficiency with cost benefit analysis and an action plan to reduce energy
consumption."
Explanation - An energy audit is a systematic process aimed at understanding how
energy is being used in a facility, identifying areas where it is being wasted, and
recommending measures to enhance efficiency. It involves data collection, analysis, and
proposal of cost-effective solutions to reduce energy usage and improve performance.

5.2 ABC Analysis – Its Need and Application

In an energy audit, ABC analysis categorizes energy consuming sources like equipment,
processes, or areas into three categories based on their contribution to overall energy
consumption - A (high-impact, significant energy users), B (medium-impact), and C (low-
impact). This helps prioritize energy conservation efforts by identifying the most
significant energy consumers.

The classifies three categories are,

1. Category A - High-priority items, which are the top energy-consuming equipment or

processes that contribute to 70-80% of the total energy consumption. These should
be the primary focus of energy efficiency improvements.
2. Category B - Medium-priority items, which consume a moderate amount of energy.
They typically represent 20-30% of the total energy consumption but may have
opportunities for optimization.
3. Category C - Low-priority items, which account for the smallest portion of the energy
consumption often less than 10-20%. While these items are not the primary focus for
energy-saving measures, they should still be monitored for potential efficiency
improvements.

5.3 Energy Audit Instruments and Their Use

Energy audit instruments are specialized tools used to assess and analyze energy
consumption, identify areas of inefficiency, and recommend improvements. These
instruments measure, monitor, and evaluate energy usage, helping to optimize energy
efficiency in various settings.

1. Power Analyzer - A power analyzer is a vital instrument used to measure various

electrical parameters such as voltage, current, power factor, active power, reactive
power, and total energy consumption. It helps identify how much energy is being
consumed by different equipment and whether there are inefficiencies due to poor
power factor or harmonics. Advanced power analyzers also offer data logging and
harmonic analysis features, making them essential for detailed energy audits.
2. Digital Multimeter (DMM) - A digital multimeter is a versatile tool used to measure
basic electrical parameters like voltage, current, and resistance. During an energy

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audit, it helps in checking the load conditions, continuity of circuits, and verifying the
accuracy of other instruments.
3. Clamp Meter - A clamp meter, or tong tester, is used to measure current without
disconnecting the circuit. It is particularly useful for identifying current drawn by
individual equipment or circuits during operation. This helps in detecting overloaded
circuits, unbalanced loads, or unexpected power draws that could indicate wastage or
faults.
4. Lux Meter - A lux meter measures the intensity of illumination (in lux) within the lab
environment. It is useful for assessing the lighting efficiency of the workspace. During
an audit, this instrument helps determine whether lighting levels are appropriate or
excessive, allowing for recommendations such as replacing inefficient lamps or
adjusting layouts to optimize energy use.
5. Infrared Thermometer or Thermal Imager - This instrument is used to measure
surface temperatures without contact. It is valuable in identifying hotspots in
electrical panels, connections, motors, or other equipment. Excessive heat may
indicate energy losses due to overloading, loose connections, or insulation failure. By
detecting such issues early, it helps prevent energy wastage and potential hazards.
6. Tachometer - A tachometer is used to measure the rotational speed (in RPM) of
motors and rotating machinery. During an energy audit, it helps verify if motors are
operating at optimal speeds or are being under- or over-utilized, which can lead to
inefficiencies or mechanical stress that increases energy consumption.
7. Harmonic Analyzer - A harmonic analyzer detects and measures harmonic
distortions in the electrical system. Harmonics can affect equipment performance,
increase energy losses, and shorten the life of electrical devices. This tool helps in
identifying the presence and severity of harmonics, allowing for corrective actions
such as using filters or changing equipment operation.
8. Data Logger - A data logger is used to continuously record electrical parameters like
voltage, current, power, and energy over a period of time. It is extremely useful for
identifying load variations, peak demands, and energy usage trends. By analyzing the
logged data, auditors can propose time-based energy management strategies and
load balancing.

5.4 Questionnaire for Energy Audit Projects

A Questionnaire for Energy Audit Projects is a structured set of questions designed

to gather detailed information about energy usage, equipment, operational practices,
and infrastructure in a facility. It helps energy auditors analyze current energy
consumption patterns, identify inefficiencies, and recommend improvements for energy
conservation.
Common Sections in an Energy Audit Questionnaire

1. General Information - This section gathers essential details about the facility,
including its type, size, operational schedule, and organizational structure. It also
includes contact information, management's commitment to energy efficiency, and
any prior energy audits conducted, helping auditors understand the background and
energy management culture of the organization.
2. Energy Consumption Data - Focuses on the collection of energy usage information
such as types and amounts of energy consumed, historical consumption trends, and
utility bills. It also involves calculating specific energy consumption for benchmarking
against similar facilities to identify inefficiencies.
3. Equipment Details - Covers inventory and specifications of major energy-using
equipment. This includes lighting systems, HVAC units, electric motors, and other
machinery. The data helps assess operational efficiency, maintenance practices, and
opportunities for equipment upgrades or optimization.

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 Energy Conservation & Audit

4. Recommendations - Provides targeted energy-saving measures based on the audit

findings. It includes proposed actions for improving energy efficiency, the potential
financial savings, and a suggested implementation plan that outlines steps, priorities,
and timelines for execution.

5.5 Energy Flow Diagram (Sankey Diagram) and Its Importance

An Energy Flow Diagram, often represented as a Sankey Diagram, is a visual representation of

energy flows (input, output, and losses ) within a system or process. It uses arrows or flow
lines where the width of each arrow is proportional to the amount of energy it
represents. This type of diagram is crucial for understanding energy efficiency,
identifying losses, and optimizing energy use.
Importance of Energy Flow Diagram in Energy Audits

1. Visual Clarity - It provides an intuitive and clear visualization of complex energy

flows, making it easier to understand how energy is consumed and lost.
2. Identifies Losses - Its helps in pinpoint major areas of energy wastage or
inefficiency within the system.
3. Supports Decision-Making - It assists auditors and managers in prioritizing energy-
saving measures based on where the most energy is being lost.
4. Performance Benchmarking - Its enables comparison of energy performance
before and after implementing conservation measures.
5. Communication Tool - It’s useful in presenting energy data to stakeholders, as it
simplifies technical data into an easy-to-grasp format.
6. Encourages Energy Awareness – Its promotes a better understanding of energy
use among staff, encouraging behavior change and engagement.

5.6 Calculation of Simple Payback Period for Energy Conservation

Equipment

The Payback Period in the context of an energy audit refers to the estimated amount
of time required to recover the initial investment made in an energy-saving
project through cost savings resulting from an implemented energy efficiency
measure. It is calculated by dividing the investment cost by the annual energy savings
and given by,

Initial Investment
Payback Period=
Annual Energy Savings

5.7 Energy Audit Procedure (Walk through Audit and Detailed

Audit)

5.7.1 Energy Audit Procedure -

An Energy Audit is a systematic process of evaluating energy consumption in a facility or

organization to identify areas of energy waste and opportunities for energy savings. The
goal is to reduce energy consumption without affecting productivity or comfort.
The procedure typically involves the following steps,
1. Planning and Preparation
2. Data Collection
3. Conduct Survey and Monitoring

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 Energy Conservation & Audit

4. Energy Consumption Analysis

5. Identification of Energy Conservation Opportunities (ECOs)
6. Evaluation of ECOs
7. Report Preparation and Implementation
8. Monitoring and Verification
Energy Audit Procedure – in Description

1. Planning and Preparation - Its define the audit's scope, objectives, and
responsibilities and meetings are conduct with staff to align the audit plan and to get
the basic understanding.
2. Data Collection – Its involvers in collect past energy bills, equipment specifications,
and production data to understand current energy usage.
3. Conduct Survey and Monitoring – It involves in site inspections to observe
processes and take necessary measurements with staff to understand energy flow.
4. Energy Consumption Analysis - By analyze energy usage patterns from collected
data to identify major energy-consuming systems and inefficiencies.
5. Identification of Energy Conservation Opportunities (ECOs) - Its involves in
Spot areas where energy can be saved without affecting production or comfort and
detect possible ways to reduce energy waste.
6. Evaluation of ECOs - Its involves in assess technical and financial feasibility,
expected savings, and payback period of each measure for implemented of energy
saving measures.
7. Report Preparation and Implementation - A detailed report is Prepare with
recommendations and plan being implemented of energy saving measures.
8. Monitoring and Verification – Its involves in tracking performance of implemented
actions and Verification of actual energy savings and adjusts if needed .

5.7.2 Walk-through Audit -

A Walk-through Audit, also known as a Preliminary Energy Audit or Simple Audit,

is the first and least detailed phase of the energy auditing process. It primarily involves a
visual inspection of the facility to identify obvious energy inefficiencies and areas
with potential for energy savings. This type of audit relies on readily available data
such as utility bills, operating schedules, and simple observations of equipment and
operations.

Objectives of Walk-Through Audit

1. Establish current energy consumption based on available data (like energy bills).
2. Gather production and operational data to compare with energy usage.
3. Identify no-cost and low-cost opportunities for immediate energy savings.
4. Pinpoint areas for further, more detailed energy analysis.
5. Set a baseline for energy consumption to track future improvements.

Steps Involves in Conducting Walkthrough Audit

1. Plan the Walkthrough - Its involves in selecting specific area or processes to

examine and define the scope of the walkthrough.
2. Prepare Documentation - Its involves in collect related documents of the process
like invoices, process flowcharts, policies, or records needed.
3. Conduct the Walkthrough - Its involves in following the chosen transaction or
process step-by-step from initiation to completion to understand how it functions.
4. Identify Controls and Risks – In this step internal controls points areas where risks
or any errors could potentially occur are noted.

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 Energy Conservation & Audit

5. Evaluate Controls - how well the controls work in preventing any errors or risks are
judge and process reliability are ensured.
6. Document Findings - Finally the all record observed, and any weaknesses or gaps
found during the walkthrough are assessed for reporting the findings.

5.7.3 Detailed Energy Audit -

A detailed energy audit provides a comprehensive analysis of energy consumption within

a facility that identifies energy-saving opportunities, assesses energy losses, and
recommends practical, cost-effective solutions. It includes an energy balance thorough
data collection, system performance testing, and extensive analysis. The audit is
conducted in three phases: Pre-Audit, Audit, and Post-Audit, following a flexible ten-step
methodology tailored to the specific industry.
Phase I – Pre-Audit Phase
Step 1: Plan and Organize – Its involves forming the energy audit team, planning the
audit schedule, and identifying the required instruments. A walk-through audit and an
Informal interviews is conducted to get a basic understanding of the plant layout and
equipment.
Step 2: Introductory Meeting - An initial meeting is arranged with department heads
and staff involved in energy management to build awareness, create cooperation among
teams, and issue tailored questionnaires to collect department-specific energy data for
further analysis.
Phase II – Audit Phase
Step 3: Data Collection & Processing Diagram – It involves, collection of detailed
historical data of energy usage is collected to establish baseline energy consumption
and power flow diagrams, Single-line diagram are created, along with process flow
charts and utility diagrams, to understand the overall energy flow.
Step 4: Conduct Survey and Monitoring - Measurements are carried out using
portable instruments for determining efficiency, insulation levels, and lighting conditions
and then the collected data is compared with the design specifications to find
inefficiencies and variations in performance.
Step 5: Conduct Detailed Trials/Tests for Major Energy Equipment – It involves
conducting specific trials test for large energy-consuming equipment which include 24-
hour monitoring of input and output parameters, like Maximum Demand (MD), Power
Factor (PF), and energy consumption (kWh), along with efficiency tests for boilers,
furnaces, and other machinery.
Step 6: Analysis of Energy Use - A detailed analysis of energy balancing is done to
identify areas where energy is being lost or wasted. It helps auditors find specific causes
of inefficiency and to take propose corrective actions.
Phase III – Post-Audit Phase
Step 7: Identifying ENCON Opportunities - Potential Energy Conservation (ENCON)
measures are identified by reviewing existing equipments, and consultation are done
with vendors for efficient technologies.
Step 8: Cost-Benefit Analysis - Each energy-saving opportunity is evaluated
economically, and parameters like initial cost, annual savings, payback period, and
feasibility are assessed based on this, projects are prioritized.

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 Energy Conservation & Audit

Step 9: Reporting and Presentation to Management - A draft report summarizing

the audit findings, recommended measures, and potential savings is prepared and
presented to top management and the feedback from them finalize the report.
Step 10: Implementation and Follow-Up - Finally, the approved energy-saving
measures are implemented according to plan. Continuous monitoring and periodic
review are done to ensure that the implemented measures are successfully deliver.

5.8 Energy Audit Report Format

An energy audit report format typically includes sections like a title page, table of
contents, executive summary, introduction, audit activity and results, recommendations,
and appendices. The report should clearly outline the scope, methodology, findings, and
recommendations for improving energy efficiency
Energy Audit Report -
1. Title Page - Includes the title of the report, name and address of the organization,
and the date of the audit.
2. Table of Contents - Lists all major sections and subsections of the report with
corresponding page numbers.
3. Executive Summary - Provides a brief overview of the audit's scope, key findings,
and suggested energy-saving measures.
4. Introduction - Gives background information about the organization, the purpose
and scope of the audit, and includes a process overview if applicable.
5. Audit Activity and Results – In this stage how the audit was conducted, tools used,
methods of data collection, and analysis of energy usage and inefficiencies are
descripted.
6. Recommendations - Specific and practical suggestions to improve energy
efficiency, supported by data potential c cost-benefit analysis given.
7. Appendices - Contains supporting documents like energy bills, equipment lists, and
detailed analysis data.

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 Energy Conservation & Audit

Features of Energy Efficient Motor –

1. Designed for using less energy to complete the same amount of work as normal motors.
2. Use higher-quality materials, such as lamination steel, to prevent losses.
3. Use of low friction bearings to reduce mechanical losses.
4. Improved cooling systems to maintain appropriate operating temperatures while reducing
thermal losses.
5. Many energy-efficient motors incorporate or may be linked with variable frequency
drives (VFDs), which allow the motor speed to be adjusted to meet load requirements.

Advantages of Energy Efficient Motor -

1. Reduced energy use results in decreased electricity bills.

2. Lower energy consumption leads to less greenhouse gas emissions, and less carbon
footprints.
3. High-quality components and efficient functioning usually result in reduced wear and tear
and fewer failures.
4. Superior components and cooler operation reduce breakdowns, which can increase reliability and
safety.
5. Enhanced design and materials frequently result in a longer operational life.
6. EEM has better performances, higher torque and improved power factor.

Disadvantages of Energy Efficient Motor -

1. Because of advanced materials and design, the initial cost is more than regular motor’s
cost.
2. A more complex design may necessitate specialist repairs and maintenance.
3. Additional features for increasing efficiency can make a product larger.
4. Limited supply of high-quality material and components may affecting production and
delivery timeframes.
5. For applications where motors are used infrequently or for short periods, energy-efficient
motors might not be the most beneficial solution due to the cost.

Applications of Energy Efficient Motor -

1. It is used in irrigation systems, grain handling, and livestock ventilation.

2. Used in manufacturing and processing facilities in pumps, fans, compressors, and
conveyors.
3. Found in laundry machines, refrigerators, and other household appliances.
4. Used in electric vehicles, hybrid systems, and rail systems.
5. It often integrated into wind turbines and solar power inverters.

Intelligent Power Factor Controller (IPFC) -

An Intelligent Power Factor Controller (IPFC) is a sophisticated device used to improve
the power factor of a system to maintain it near unity in a dynamic and intelligent
manner. Unlike traditional rely or step-switched capacitor banks based power factor
correction methods, an IPFC uses advanced control algorithms and real-time monitoring
to provide precise and continuous power factor correction.
Its continuously monitor the voltage and current of the system through CTs and PTs, by
acquiring the data of all three phases IPFC gains a comprehensive understanding of the
system's electrical behavior. IPFC's internal microprocessor employs control algorithms
to analyze the incoming voltage and current data for determine the exact amount of
reactive power compensation required to bring the power factor near to unity. The IPFC
switches or adjust the capacitor banks for power factor correction. Consequently, if load

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 Energy Conservation & Audit

becomes less inductive, the IPFC will disconnect capacitor steps to avoid over-correction,
which could lead to a leading power factor, which is undesirable.
Beyond its core function, modern IPFCs often incorporate with protection and monitoring
features like over-voltage, under-voltage, over-current, and harmonic distortion. By
continuously monitoring these parameters, the IPFC can detect potentially damaging
conditions and take appropriate action, such as disconnecting the capacitor banks or
triggering alarms, thereby its provides both protection and the power factor correction to
system.
Automatic Power Factor Controller (APFC) -
An Automatic Power Factor Controller (APFC) is a device used to automatically maintain
the power factor of an electrical system close to unity by automatically switching
capacitor banks in response to changing load conditions. Unlike manually operated
systems, APFC on time power factor correction for improving energy efficiency and
reducing penalties due to low power factor.
The APFC continuously monitors the voltage and current of the system through Current
Transformers (CTs) and Potential Transformers (PTs). By acquiring real-time data’s from
all three phases, the APFC determines the system's power factor and the amount of
reactive power required to correct it, through internal controller or microprocessor using
logic control or preset thresholds to decide whether to switch capacitor bank in steps.
When the system has a lagging power factor due to inductive loads the APFC switches
ON the capacitor banks to supply leading reactive power, this brings the power factor
near unity. Conversely, when the system becomes less inductive, it disconnects the
capacitor bank steps to prevent over-correction.
In addition to power factor correction, modern APFC panels include protection features
such as over-voltage, under-voltage, over-current, and short-circuit protection. These
features help safeguard the controller and capacitor banks. APFC systems may also offer
display panels for real-time status and communication interfaces for remote monitoring.

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