ME 482 Energy Conservation & Management
MODULE V
5.1 Definition & Objectives of Energy Management
The fundamental goal of energy management is to produce goods and provide services with
the least cost and least environmental effect.
As per the Energy Conservation Act, 2001, Energy Audit is defined as "the verification,
monitoring and analysis of use of energy including submission of technical report containing
recommendations for improving energy efficiency with cost benefit analysis and an action
plan to reduce energy consumption".
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ME 482 Energy Conservation & Management
The objective of Energy Management is to achieve and maintain optimum energy
procurement and utilization, throughout the organization and:
• To minimize energy costs / waste without affecting production & quality
• To minimize environmental effects.
5.2 Energy Audit: Needs
In any industry, the three top operating expenses are often found to be energy (both
electrical and thermal), labour and materials. If one were to relate to the manageability of the
cost or potential cost savings in each of the above components, energy would invariably
emerge as a top ranker, and thus energy management function constitutes a strategic area for
cost reduction. Energy Audit will help to understand more about the ways energy and fuel are
used in any industry, and help in identifying the areas where waste can occur and where scope
for improvement exists.
The Energy Audit would give a positive orientation to the energy cost reduction, preventive
maintenance and quality control programmes which are vital for production and utility
activities. Such an audit programme will help to keep focus on variations which occur in the
energy costs, availability and reliability of supply of energy, decide on appropriate energy mix,
identify energy conservation technologies, retrofit for energy conservation equipment etc.
In general, Energy Audit is the translation of conservation ideas into realities, by lending
technically feasible solutions with economic and other organizational considerations within a
specified time frame.
The primary objective of Energy Audit is to determine ways to reduce energy consumption
per unit of product output or to lower operating costs. Energy Audit provides a " bench-mark"
(Reference point) for managing energy in the organization and also provides the basis for
planning a more effective use of energy throughout the organization.
5.3 Energy Audit: Types
Type of Energy Audit
The type of Energy Audit to be performed depends on:
- Function and type of industry
- Depth to which final audit is needed, and
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ME 482 Energy Conservation & Management
- Potential and magnitude of cost reduction desired
Thus Energy Audit can be classified into the following two types.
i) Preliminary Audit
ii) Detailed Audit
5.3.1 Preliminary Energy Audit Methodology
Preliminary energy audit is a relatively quick exercise to:
• Establish energy consumption in the organization
• Estimate the scope for saving
• Identify the most likely (and the easiest areas for attention
• Identify immediate (especially no-/low-cost) improvements/ savings
• Set a 'reference point'
• Identify areas for more detailed study/measurement
• Preliminary energy audit uses existing, or easily obtained data
5.3.2 Detailed Energy Audit Methodology
A comprehensive audit provides a detailed energy project implementation plan for a
facility, since it evaluates all major energy using systems.
This type of audit offers the most accurate estimate of energy savings and cost. It
considers the interactive effects of all projects, accounts for the energy use of all major
equipment, and includes detailed energy cost saving calculations and project cost.
In a comprehensive audit, one of the key elements is the energy balance. This is based
on an inventory of energy using systems, assumptions of current operating conditions and
calculations of energy use. This estimated use is then compared to utility bill charges.
Detailed energy auditing is carried out in three phases: Phase I, II and III.
Phase I - Pre Audit Phase
Phase II - Audit Phase
Phase III - Post Audit Phase
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ME 482 Energy Conservation & Management
Phase I -Pre Audit Phase Activities
A structured methodology to carry out an energy audit is necessary for efficient working.
An initial study of the site should always be carried out, as the planning of the procedures
necessary for an audit is most important.
Initial Site Visit and Preparation Required for Detailed Auditing
An initial site visit may take one day and gives the Energy Auditor/Engineer an
opportunity to meet the personnel concerned, to familiarize him with the site and to assess the
procedures necessary to carry out the energy audit.
During the initial site visit the Energy Auditor/Engineer should carry out the following
actions: -
• Discuss with the site's senior management the aims of the energy audit.
• Discuss economic guidelines associated with the recommendations of the audit.
• Analyze the major energy consumption data with the relevant personnel.
• Obtain site drawings where available - building layout, steam distribution, compressed air
distribution, electricity distribution etc.
• Tour the site accompanied by engineering/production
The main aims of this visit are: -
• To finalize Energy Audit team
• To identify the main energy consuming areas/plant items to be surveyed during the audit.
• To identify any existing instrumentation/ additional metering required.
• To decide whether any meters will have to be installed prior to the audit eg. kWh, steam,
oil or gas meters.
• To identify the instrumentation required for carrying out the audit.
• To plan with time frame
• To collect macro data on plant energy resources, major energy consuming centers
• To create awareness through meetings/ programme
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ME 482 Energy Conservation & Management
Phase II- Detailed Energy Audit Activities
Depending on the nature and complexity of the site, a comprehensive audit can take from
several weeks to several months to complete. Detailed studies to establish, and investigate,
energy and material balances for specific plant departments or items of process equipment are
carried out. Whenever possible, checks of plant operations are carried out over extended
periods of time, at nights and at weekends as well as during normal daytime working hours, to
ensure that nothing is overlooked.
The audit report will include a description of energy inputs and product outputs by major
department or by major processing function, and will evaluate the efficiency of each step of the
manufacturing process. Means of improving these efficiencies will be listed, and at least a
preliminary assessment of the cost of the improvements will be made to indicate the expected
pay- back on any capital investment needed. The audit report should conclude with specific
recommendations for detailed engineering studies and feasibility analyses, which must then be
per- formed to justify the implementation of those conservation measures that require
investments.
The information to be collected during the detailed audit includes: -
1. Energy consumption by type of energy, by department, by major items of process
equipment, by end-use
2. Material balance data (raw materials, intermediate and final products, recycled
materials, use of scrap or waste products, production of by-products for re-use in other
industries, etc.)
3. Energy cost and tariff data
4. Process and material flow diagrams
5. Generation and distribution of site services (eg. compressed air, steam).
6. Sources of energy supply (e.g. electricity from the grid or self-generation)
7. Potential for fuel substitution, process modifications, and the use of co-generation
systems (combined heat and power generation).
8. Energy Management procedures and energy awareness training programs within the
establishment
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ME 482 Energy Conservation & Management
5.4 Energy Audit Reporting Format
After successfully carried out energy audit energy manager/energy auditor should report
to the top management for effective communication and implementation. A typical energy audit
reporting contents and format are given below. The following format is applicable for most of the
industries. However the format can be suitably modified for specific requirement applicable for a
particular type of industry.
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ME 482 Energy Conservation & Management
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ME 482 Energy Conservation & Management
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ME 482 Energy Conservation & Management
5.5 Understanding Energy Costs
Understanding energy cost is vital factor for awareness creation and saving calculation.
In many industries sufficient meters may not be available to measure all the energy used. In
such cases, invoices for fuels and electricity will be useful. The annual company balance sheet
is the other sources where fuel cost and power are given with production related information.
Energy invoices can be used for the following purposes:
• They provide a record of energy purchased in a given year, which gives a base-line for
future reference
• Energy invoices may indicate the potential for savings when related to production
requirements or to air conditioning requirements/space heating etc.
• When electricity is purchased on the basis of maximum demand tariff
• They can suggest where savings are most likely to be made.
• In later years invoices can be used to quantify the energy and cost savings made through
energy conservation measures
5.5.1Fuel Costs
A wide variety of fuels are available for thermal energy supply. Few are listed
below:
• Fuel oil
• Low Sulphur Heavy Stock (LSHS)
• Light Diesel Oil (LDO)
• Liquefied Petroleum Gas (LPG)
• COAL
• LIGNITE
• WOOD ETC.
Understanding fuel cost is fairly simple and it is purchased in Tons or Kiloliters.
Availability, cost and quality are the main three factors that should be considered while
purchasing. The following factors should be taken into account during procurement of fuels
for energy efficiency and economics.
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ME 482 Energy Conservation & Management
• Price at source, transport charge, type of transport
• Quality of fuel (contaminations, moisture etc)
• Energy content (calorific value)
5.5.2 Power Costs
Electricity price in India not only varies from State to State, but also city to city and
consumer to consumer though it does the same work everywhere. Many factors are involved in
deciding final cost of purchased electricity such as:
• Maximum demand charges, kVA
• Energy Charges, kWh
• TOD Charges, Peak/Non-peak period
• Power factor Charge, P.F
• Other incentives and penalties applied from time to time
• High tension tariff and low tension tariff rate changes
• Slab rate cost and its variation
• Type of tariff clause and rate for various categories such as commercial, residential,
industrial, Government, agricultural, etc.
• Tariff rate for developed and underdeveloped area/States
• Tax holiday for new projects
5.6 Benchmarking and Energy Performance
Benchmarking of energy consumption internally (historical / trend analysis) and
externally (across similar industries) are two powerful tools for performance assessment and
logical evolution of avenues for improvement. Historical data well documented helps to bring out
energy consumption and cost trends month-wise / day-wise. Trend analysis of energy
consumption, cost, relevant production features, specific energy consumption, help to understand
effects of capacity utilization on energy use efficiency and costs on a broader scale.
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ME 482 Energy Conservation & Management
External benchmarking relates to inter-unit comparison across a group of similar units.
However, it would be important to ascertain similarities, as otherwise findings can be grossly
misleading.
Few comparative factors, which need to be looked into while benchmarking externally are:
• Scale of operation
• Vintage of technology
• Raw material specifications and quality
• Product specifications and quality
Benchmarking energy performance permits
• Quantification of fixed and variable energy consumption trends vis-à-vis production
levels
• Comparison of the industry energy performance with respect to various production
levels (capacity utilization)
• Identification of best practices (based on the external benchmarking data)
• Scope and margin available for energy consumption and cost reduction
• Basis for monitoring and target setting exercises.
The benchmark parameters can be:
• Gross production related
e.g. kWh/MT clinker or cement produced (cement plant)
e.g. kWh/kg yarn produced (Textile unit)
e.g. kWh/MT, kCal/kg, paper produced (Paper plant)
e.g. kCal/kWh Power produced (Heat rate of a power plant)
e.g. Million kilocals/MT Urea or Ammonia (Fertilizer plant)
e.g. kWh/MT of liquid metal output (in a foundry)
• Equipment / utility related
e.g. kW/ton of refrigeration (on Air conditioning plant)
e.g. % thermal efficiency of a boiler plant
e.g. % cooling tower effectiveness in a cooling tower
e.g. kWh/NM3 of compressed air generated
e.g. kWh /litre in a diesel power generation plant.
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ME 482 Energy Conservation & Management
5.7 Energy Performance
The energy performance is the percentage of energy saved at the current rate of use
compared to the reference year rate of use. The greater the improvement, the higher the
number will be.
Reference year’s energy- Current year's energy
Plant energy performance x 100
Reference year’s energy
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5.8 Matching Energy Usage to Requirement
Mismatch between equipment capacity and user requirement often leads to inefficiencies
due to part load operations, wastages etc. Worst case design, is a designer's characteristic,
while optimization is the energy manager's mandate and many situations present themselves
towards an exercise involving graceful matching of energy equipment capacity to end-use
needs. Some examples being:
• Eliminate throttling of a pump by impeller trimming, resizing pump, installing variable
speed drives
• Eliminate damper operations in fans by impeller trimming, installing variable speed
drives, pulley diameter modification for belt drives, fan resizing for better efficiency.
• Moderation of chilled water temperature for process chilling needs
• Recovery of energy lost in control valve pressure drops by back pressure/turbine
adoption
• Adoption of task lighting in place of less effective area lighting
5.9 Maximizing System Efficiency
Once the energy usage and sources are matched properly, the next step is to operate the
equipment efficiently through best practices in operation and maintenance as well as judicious
technology adoption. Some illustrations in this context are:
• Eliminate steam leakages by trap improvements
• Maximize condensate recovery
• Adopt combustion controls for maximizing combustion efficiency
• Replace pumps, fans, air compressors, refrigeration compressors, boilers, furnaces,
heaters and other energy consuming equipment, wherever significant energy efficiency
margins exist.
5.10 Optimizing the Input Energy Requirements
Consequent upon fine-tuning the energy use practices, attention is accorded to
considerations for minimizing energy input requirements. The range of measures could
include:
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ME 482 Energy Conservation & Management
• Shuffling of compressors to match needs.
• Periodic review of insulation thickness
• Identify potential for heat exchanger networking and process integration.
• Optimisation of transformer operation with respect to load.
5.11 Fuel and Energy Substitution
Substituting existing fossil fuel with more efficient and less cost/less polluting fuels such
as natural gas, biogas and locally available agro-residues. Fuel substitution has taken place in
all the major sectors of the Indian economy. Kerosene and Liquefied Petroleum Gas (LPG)
have substituted soft coke in residential use.
Few examples of fuel substitution
• Natural gas is increasingly the fuel of choice as fuel and feedstock in the fertilizer, petro
chemicals, power and sponge iron industries.
• Replacement of coal by coconut shells, rice husk etc.
• Replacement of LDO by LSHS
Few examples of energy substitution
Replacement of electric heaters by steam heaters
Replacement of steam based hot water by solar systems
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ME 482 Energy Conservation & Management
5.12 Energy Audit Instruments
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.
Combustion analyzer:
This instrument has in-built chemical cells
which measure various gases such as O2, CO,
NOX and SOX.
Fuel Efficiency Monitor:
This measures oxygen and temperature of the
flue gas. Calorific values of common fuels
are fed into the microprocessor which calcu-
lates 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. A separate fyrite
can be used for O2 and CO2 measurement.
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ME 482 Energy Conservation & Management
Contact thermometer:
These are thermocouples which measures for
example flue gas, hot air, hot water tempera-
tures by insertion of probe into the stream.
For surface temperature, a leaf type probe is
used with the same instrument.
Infrared Thermometer:
This is a non-contact type measurement
which when directed at a heat source directly
gives the temperature read out. This instru-
ment is useful for measuring hot spots in
furnaces, surface temperatures etc.
Pitot Tube and manometer:
Air velocity in ducts can be measured using
a pitot tube and inclined manometer for fur-
ther calculation of flows.
Water flow meter:
This non-contact flow measuring device
using Doppler effect / Ultra sonic 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.
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ME 482 Energy Conservation & Management
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 instru-
ment which can be used where direct access
is possible.
More sophisticated and safer ones are non
contact instruments such as stroboscopes.
Tachometer Stroboscope
Leak Detectors:
Ultrasonic instruments are available which
can be used to detect leaks of compressed air
and other gases which are normally not pos-
sible to detect with human abilities.
Lux meters:
Illumination levels are measured with a lux
meter. It consists of a photo cell which sens-
es the light output, converts to electrical
impulses which are calibrated as lux.
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