1 Energy Auditing and Demand Side Management

UNIT - I

ENERGY AUDITING

Syllabus:
Energy Situation – World and India, Energy Consumption, Conservation, Codes, Standards and Legislation. Energy
Audit- Definitions, Concept, Types of Audit, Energy Index, Cost Index, Pie Charts, Sankey Diagrams, Load Profiles,
Energy Conservation Schemes. Measurements in Energy Audits, Presentation of Energy Audit Results.

Introduction to Energy
Energy is one of the major inputs for the economic development of any country. In the case
of the developing countries, the energy sector assumes a critical importance in view of the ever-
increasing energy needs requiring huge investments to meet them.
Energy can be classified into several types based on the following criteria:
1. Primary and Secondary energy
2. Commercial and Non commercial energy
3. Renewable and Non-Renewable energy

1. Primary and Secondary Energy

Primary energy sources are those that are either found or stored in nature. Common primary
energy sources are coal, oil, natural gas, and biomass (such as wood).

Other primary energy sources available include nuclear energy from radioactive substances,
thermal energy stored in earth's interior, and potential energy due to earth's gravity. The major
primary and secondary energy sources are shown in above. Primary energy sources are mostly
converted in industrial utilities into secondary energy sources; for example coal, oil or gas converted
into steam and electricity. Primary energy can also be used directly. Some energy sources have non-
energy uses, for example coal or natural gas can be used as a feedstock in fertilizer plants.

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2. Commercial Energy and Non Commercial Energy

Commercial Energy
The energy sources that are available in the market for a definite price are known as
commercial energy. By far the most important forms of commercial energy are electricity, coal and
refined petroleum products. Commercial energy forms the basis of industrial, agricultural, transport
and commercial development in the modern world. In the industrialized countries, commercialized
fuels are predominant source not only for economic production, but also for many household tasks of
general population.
Examples: Electricity, lignite, coal, oil, natural gas etc.
Non-Commercial Energy
The energy sources that are not available in the commercial market for a price are classified
as non-commercial energy. Non-commercial energy sources include fuels such as firewood, cattle
dung and agricultural wastes, which are traditionally gathered, and not bought at a price used
especially in rural households. These are also called traditional fuels. Non-commercial energy is
often ignored in energy accounting.
Example: Firewood, agro waste in rural areas; solar energy for water heating, electricity generation,
for drying grain, fish and fruits; animal power for transport, threshing, lifting water for irrigation,
crushing sugarcane; wind energy for lifting water and electricity generation.

3. Renewable and Non-Renewable Energy

Renewable energy is energy obtained from sources that are essentially inexhaustible.
Examples of renewable resources include wind power, solar power, geothermal energy, tidal power
and hydroelectric power (See below Figure). The most important feature of renewable energy is that
it can be harnessed without the release of harmful pollutants.

Non-renewable energy is the conventional fossil fuels such as coal, oil and gas, which are
likely to deplete with time.

Global Primary Energy Reserves

1. Coal
The proven global coal reserve was estimated to be 10,35,012 million tonnes by end of 2017.
The USA had the largest share of the global reserve (25.4%) followed by Russia (15.9%), China
(11.6%). India was 4th in the list with 8.6%.
2. Oil
The global proven oil reserve was estimated to be 1696.6 billion barrels by the end of 2017.
Venezuela, Saudi Arabia, Canada, Iran and Iraq are the top five countries which has proven reserves
of oil. (One barrel of oil is approximately 160 litres).

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3. Gas
The global proven gas reserve was estimated to be 193.5 trillion cubic metres by the end of
2017. The Russian Federation had the largest share of the reserve with almost 27%. In the next
places Iran, Qatar, United States, Saudi Arabia has proven natural gas reserves.

Energy Situation in World

With the present situation of increasing energy demand, rising energy prices, and
reinforcement of countermeasures for global warming, renewable energy sources have taken the
spotlight. Bio-fuels are one form of renewable energy that has become more widespread. Also, bio-
fuels have been introduced and expanded as alternative fuel for the transportation sector and as a
form of liquid renewable energy that can be blended with petroleum. The following will discuss the
demand perspective derived from the IEA (International Energy Agency) world energy forecast,
basic energy price trends, and bio-fuel trends

Increase of Energy Demand

According to the IEA(International Energy Agency) World Energy Outlook, the world’s
primary energy supply has increased by 58% in 25 years, from about 7.2 billion TOE (tonne of oil
equivalent) in 1980 to about 11.4 billion TOE in 2005. The OECD (Organization for Economic
Cooperation and Development) countries used to be the center of energy demand. However, these
OECD countries are lower both in economic and population growth rates than those of non-OECD
countries. Further, the OECD countries’ economic industrial structure has changed, therefore the
increase in demand stays low. In 2005 the non-OECD countries took the lead in demand.
(TOE: Unit representing energy generated by burning one metric ton(1000 kilograms) or 7.4 barrels
of oil, equivalent to the nergy obtained from 1270 cubir meters of natural gas or 1.4 metric tons of
coal.)
Transportation Sector
Energy demand in the transportation sector is estimated to increase 57% from about 2.0
billion TOE in 2005 to about 3.2 billion TOE in 2030. The reason petroleum accounts for a large
fraction of energy supply for the transportation sector is that petroleum alternatives are difficult.
Petroleum fuels for airplanes, ships and automobiles have several key merits. They have a high
energy density, which makes a sufficient cruising distance possible, and liquid fuels are relatively
easy to handle.

Trend of International Energy Prices

In the two oil crises during the 1970’s and the gulf crisis of 1990, a disruption of crude oil
supply was triggered by the 4th Middle East War, the Iran Revolution, and the Kuwait invasion. As a
result, prices increased about 2-4 times. After that, crude oil prices in the 1990’s didn’t exceed
$30/bbl. The WTI(West Texas Intermediate; is a grade of crude oil) crude oil price (an international
price index) was stable at around $20/bbl. However, after it went down to $10/bbl in December,
1998, the price started to go up around the Iraq crisis in 2003. Then the price increased as high as
$147/bbl in July, 2008. In recent days the price varies between $72-75/bbl.
(bbl: barrel – unit of volume for crude oil and petroleum products)

Global Environmental Problems

Discussions on environmental problems in energy policy, particularly global warming issues,
have been given much attention these days. Scientific temperature observations, begun in the 19th
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century, have shown that the pace of temperature increase in the latter half of the 20th century has
been faster. Currently, the amount of fossil fuel origin carbon dioxide discharge has been increasing,
with the corresponding increase in energy demand. Due to this increase, it has been strongly claimed
that the artificial greenhouse effect is the main cause.

Bio-fuels
The history of bio-fuels is fairly old, since they were already investigated as automotive fuels
in the latter half of the 19th century. Much later, during the first oil crisis of 1973 bio-fuels were
again brought to the limelight. Bio-fuel utilization in Europe and the US has expanded after 1990
with a goal to improve automobile exhaust emission performance, to reduce CO2 emissions, and to
introduce a renewable energy source to offset the finite petroleum resource. Moreover, introduction
of domestic sourced bio-fuels is an important outlet for excess supplies of corn and sugar. However,
as the oil price has increased in the past 5 years, the number of countries to introduce bio-fuels and
the total production of bio-fuels have both accelerated, as a result competition problems with food
gradually comes to the forefront.

Summary
 The world uses a lot of energy (2010)
→ Average power consumption = 17 TW (2.5 KW per person)
→ World energy market ~ $3 trillion/yr (electricity ~ $1 trillion/yr)
 Average power generated in 2017 is 25551.3x109 kWh
 The world energy use is growing
– To lift people out of poverty, to improve standard of living, and to meet population growth
 Climate change and debilitating pollution concerns are on the rise
– 80% of energy is generated by fossil fuels
– CO2 emission is increasing at an alarming rate
 Oil supplies are dwindling
– Special problem for transportation sector (need alternative fuel)

Real Problems
1) Coal burning for electricity & industry and oil burning in vehicles are main sources of severe
urban and regional air pollution – SOx, NOx, hydrocarbons, soot – with big impacts on public
health, acid precipitation.
2) Emissions of CO2 from all fossil-fuel burning are largest driver of global climate disruption,
already associated with increasing harm to human well-being and rapidly becoming more
severe.
3) Increasing dependence on imported oil & natural gas means economic vulnerability, as well
as international tensions and potential for conflict over access & terms.

Alternatives to conventional fossil fuels all have liabilities & limitations

1) Traditional bio-fuels (fuel wood, charcoal, crop wastes, dung) create huge indoor air-
pollution hazard.
2) Industrial bio-fuels (ethanol, biodiesel) can take land from forests & food production,
increase food prices.
3) Hydropower and wind are limited by availability of suitable locations, conflicts over sitting.
4) Solar energy is costly and intermittent.
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5) Nuclear fission has large requirements for capital & highly trained personnel, currently lacks
agreed solutions for radioactive waste & links to nuclear weaponry.
6) Nuclear fusion doesn’t work yet.
7) Coal-to-gas and coal-to-liquids to reduce oil & gas imports doubles CO2 emissions per GJ of
delivered fuel.
8) Increasing end-use efficiency needs consumer education.

Energy Situation in INDIA

Reserves and Potential for Generation
India’s energy-mix comprises both non-renewable (coal, lignite, petroleum and natural gas)
and renewable energy sources (wind, solar, small hydro, biomass, cogeneration biogases etc.,).
Information on reserves of non-renewable sources of energy like coal, lignite, petroleum, natural gas
and the potential for generation of renewable energy sources is a pre- requisite for assessing the
country’s potential for meeting its future energy needs. They also facilitate in devising effective
conservation and management strategies for optimal utilization of these resources.

Coal and Lignite

India has a good reserve of coal and lignite. As on 01-04-2017 the estimated reserves of coal
was around 315.149 billion tones. The states of Jharkhand, Orissa, Chhattisgarh, West Bengal,
Andhra Pradesh, Maharashtra and Madhya Pradesh account for more than 99% of the total coal
reserves in the country.
The estimated reserve of lignite as on 01-04-2017 was 414.698 billion tonnes, of which 80 %
was in the southern State of Tamil Nadu with about 35.782 billion tonnes.

Petroleum and Natural gas

The estimated reserves of crude oil and natural gas in India as on 31.03.2011 stood at 757
million tonnes (MT) and 1241 billion cubic meters (BCM), respectively. Geographical distribution of
Crude oil indicates that the maximum reserves are in the Western Offshore (43%) followed by
Assam (22%), whereas the maximum reserves of Natural Gas are in the Eastern Offshore (35%)
followed by Western offshore (33%).

Renewable energy sources

There is high potential for generation of renewable energy from various sources- wind, solar,
biomass, small hydro and cogeneration bagasse. The total potential for renewable power generation
in the country as on 30-06-2018 is estimated at 71.325 GW (excluding Large Hydro). This includes
an estimated wind power potential of 29,151.29 MW (56.8%), Solar power potential of 9566.66
MW(18.6%), SHP (small-hydro power) potential of 4,346.85MW (8.5%), Biomass power from
biomass combustion, biomass gasification and bagasse cogeneration potential of 8,182 MW (15.9%)
and waste to power potential of 114.08 MW (0.2%). The geographic distribution of the estimated
potential across States reveals that Gujarat has the highest share of about 14% (12,489 MW ),
followed by Karnataka with 12% share (11,071 MW) and Maharashtra with 11% share (9596 MW),
mainly on account of wind power potential.

Interesting fact: Second largest solar park in the world is at Kurnool, Andhra Pradesh with a
capacity of 1000 MW

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Installed generating capacity of electricity

The total installed capacity for electricity generation in the country has increased from 16,271
MW as on 31-03-1971 to 3,43,898.39 MW as on 31-05-2018.
(for your information visit : https://en.m.wikipedia.org/wiki/Renewable_energy_in_India)
The total Installed capacity of power utilities in the country increased from 14,709 MW in
1970-71 to 344 GW as on 30-06-2018.
Energy Consumption
Electric energy consumption is the form of energy consumption that uses electric energy.
Overview
Consumption of electric energy is measured by Wh (Watt x Hour)
1 Wh = 3600 joule = 859.8 calorie
One 100 watt light bulb consumes 876,000 Wh (876 KWhr) of energy in one year.
Electric/Electronics devices consume electric energy to generate desired output (i.e. light, heat,
kinetic etc.), while its operation some part of energy is consumed in unintended output.
In 2008, world total of electricity production and consumption was 20261TWh. This number
corresponds to a "consumed" power of around 2.3 TW on average. The total energy needed for
producing this power is roughly a factor 2 to 3 higher because the efficiency of power plants is
roughly 30-50%, see Electricity generation. The generated power is thus in the order of 5 TW. This
is approximately a third of the total energy consumption of 15 TW, see World energy consumption.
16816TWh (83%) of electric energy was consumed by final users. The difference of 3464TWh
(17%) was consumed in the process of generating power and consumed as transmission loss.

Energy Conservation - Importance

December 14th is celebrated as World Energy Conservation day, so let us discuss some ways
by which we can conserve energy and find out why energy conservation is so important.
Everyone seems to be talking about energy conservation. But what do we mean by energy
conservation? Energy conservation means making an effort to reduce the consumption of natural
energy sources like electricity, water and so on.
Coal and other fossil fuels, which have taken three million years to form are likely to deplete
soon. In the last two hundred years, we have consumed 60% of all resources. For sustainable
development, we need to adopt energy efficiency measures. Today, 85% of primary energy comes
from non-renewable, and fossil sources (coal, oil, etc.). These reserves are continually diminishing
with increasing consumption and will not exist for future generations.
Energy Conservation and Energy Efficiency are separate, but related concepts. Energy
conservation is achieved when growth of energy consumption is reduced, measured in physical
terms. Energy Conservation can, therefore, be the result of several processes or developments, such
as productivity increase or technological progress. On the other hand Energy efficiency is achieved
when energy intensity in a specific product, process or area of production or consumption is reduced
without affecting output, consumption or comfort levels.

Energy Conservation in India

India has made rapid strides towards economic self-reliance over the last few years.
Impressive progress has been made in the fields of industry, agriculture, communication, transport
and other sectors necessitating growing consumption of energy for developmental and economic
activities. If India is to achieve the targeted growth in GDP, it would need commensurate input of
energy, mainly commercial energy in the form of coal, oil, gas and electricity.
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However, India’s fossil fuel reserves are limited. The known reserves of oil and natural gas
may last hardly for 18 and 26 years respectively at the current reserves to production ratio. India has
huge proven coal reserves (84 billion tonnes), which may last for about 200 years but the increasing
ash content in Indian Coal as well as associated greenhouse gas emissions are the major concern.
Energy being an important element of the infrastructure sector has to be ensured its
availability on sustainable basis. On the other hand, the demand for energy is growing manifold and
the energy sources are becoming scarce and costlier. Among the various strategies to be evolved for
meeting energy demand, efficient use of energy and its conservation emerges out to be the least cost
option in any given strategies, apart from being environmentally benign.
The steps to create sustainable energy system begin with the wise use of resources, energy
efficiency is the mantra that leads to sustainable energy management.

Energy Demand and Supply

On the energy demand and supply side, India is facing severe shortages. 70% of the total
petroleum product demand is being met by imports, imposing a heavy burden on foreign exchange.
Country is also facing Peak power and average energy shortages of 12% and 7% respectively.
To provide power for all, additional capacity of 100,000 MW would be needed by 2012,
requiring approximately Rs.8000 billion investment. Further, the per capita energy consumption in
India is too low as compared to developed countries, which is just 4% of USA and 20% of the world
average. The per capita consumption is targeted to grow to about 1000 kWh per year by 2012, thus
imposing extra demand on power system.

Energy Conservation Building Codes (ECBC)

The main provisions of the EC Act on Energy Conservation Building Codes are:
 The BEE would prepare guidelines for Energy Conservation Building Codes (ECBC);
 These would be notified to suit local climate conditions or other compelling factors by the
respective states for commercial buildings erected after the rules relating to energy
conservation building codes have been notified. In addition, these buildings should have a
connected load of 500 kW or contract demand of 600 kVA and above and are intended to be
used for commercial purposes;
 Energy audit of specific designated commercial building consumers would also be prescribed.

Promotional Provisions to support EC Act

Various promotional provisions in support of the EC Act have, been initiated by the Bureau
of Energy Efficiency (BEE), which are briefly explained below:

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Indian Industry Program for Energy Conservation (IIPEC)

This voluntary program of sharing of best practices, undertaking and specific energy
consumption targets has full acceptance in the 8 sectors of industry including alluminium, cement,
chlor-alkali, fertilizer, pulp & paper, petrochemicals, refinery and textile sector. Best practices have
been recorded and published through CDs and also incorporated in BEE’s website which is being
updated periodically for use of designated consumers.

Voluntary EC Policy Declaration by Indian Industry

Industries have been approached to declare their top management commitments on energy
conservation. 44 industrial units under the National Campaign on Energy Conservation 2005
declared their energy management policies and have committed to reduce their specific energy
consumption levels.

Small Group Activities on Energy Conservation

BEE supports designated consumers in improving their energy efficiency
through launch of voluntary programs .BEE launched Small Group Activity focused
on energy conservation in 4 industrial units in textile and cement sector. Feed back
received from the units indicate that about 5 % savings through housekeeping and no
cost measures is possible through this concept.

National Energy Conservation Awards

Industrial units have been motivated through National Energy Conservation Award scheme.
In EC Award 2005, 311 participating industrial units saved Rs. 9891 millions per year against an
investment of Rs. 13161 millions, on account of implementation of various energy conservation
projects. Electricity savings achieved by the participating industrial units resulted in saving in
avoided capacity equivalent to 250 MW. Response from the first time introduced schemes for
Government Buildings and Commercial Buildings (Private Sector) was also encouraging. In total, 32
buildings establishment participated (16 each in both types of establishments) and collectively saved
Rs.36 million.

National Campaign On Energy Conservation 2005

On 14th December, 2004, the Hon’ble Prime Minister of India, Dr. Manmohan Singh
launched the National Campaign on Energy Conservation, under which various measures, activities
are being undertaken during 2005 by Bureau of Energy Efficiency, industries, Schools, State
Governments and Designated Agencies, Public Sector units of Ministry of Power, etc. .The Hon’ble
Prime Minister as a part of the national of Ministry of Power, etc. campaign also released a postal
stamp on energy conservation.

Application
Energy codes provide minimum building requirements that are cost-effective in saving
energy. The energy saved is a cost savings to the building owner through lower monthly utility bills,
and smaller and thus less expensive equipment. Energy codes contribute to sustainability by saving
energy and protecting the environment.

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Energy Conservation Standards & Labeling

Standards and Labeling (S & L) has been identified as a key activity for energy efficiency
improvement. The S & L program, when in place would ensure that only energy efficient equipment
and appliance would be made available to the consumers.
The main provision of EC act on Standards and Labeling are:
 Evolve minimum energy consumption and performance standards for notified equipment
and appliances.
 Prohibit manufacture, sale and import of such equipment, which does not conform to the
standards.
 Introduce a mandatory labeling scheme for notified equipment appliances to enable
consumers to make informed choices.
 Disseminate information on the benefits to consumers.
This programme will initially focus on energy policy
issues of energy efficiency improvement in unorganized
sectors such as domestic and agriculture sectors through
improvement of designed energy efficiencies of energy
consuming appliances and providing this information on
comparative basis in the form of energy labels.
The Standards & Labeling program for equipment and appliances was launched on 18th May
2006, with the objective of providing consumers with information on the energy performance of
commonly used equipment and appliances. To widen the scope for energy savings, Labeling
program for several appliances have been introduced including air conditioners, refrigerators, tubular
fluorescent lamps, ceiling fans, color TV, electric geysers, LPG stoves, distribution transformers and
induction motors. Effective 7th January 2010, four equipments i.e. Frost Free Refrigerator,
Distribution Transformers, TFLs and Room Air-conditioners have been made mandatory for
labeling.
In order to estimate the savings of electricity from this program, the energy savings were
calculated on the basis of the sales and production data of BEE labeled products in 2009-10 (FY)
submitted by the manufacturers registered with BEE.

Example:
Air Conditioners
In order to estimate the savings of electricity from star labeled Air-
conditioners, following methodology has been used:
Methodology:
 The actual number of products manufactured and sold in each Star
category was taken from manufacturers
 The Energy Efficiency Ratio (EER) has been considered individually for
all the products.
 The Star 0 has been used as baseline for the calculation of Energy Savings
due to the star rated products.
 Total Power Savings is the product of Savings by single product (With Average EER) in each
star category and the total number of products sold
 An average of 150 working days in a year was considered.
 An average of 8 working hours in a day was considered.
 The coincidence factor considered is 1 for estimating avoided capacity.
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Legislation
Electricity
Following the enactment of the Electricity Regulatory Commission Legislation, the Central
Electricity Regulatory Commission (CERC) was set up, with the main objective of regulating the
Central power generation utilities. State level regulatory bodies have also been set up to set tariffs
and promote competition. Private investments in power generation were also allowed. The State
SEBs were asked to switch over to separate Generation, Transmission and Distribution corporations.
There are plans to link all SEB grids and form a unified national power grid.

Electricity Act, 2003

The government has enacted Electricity Act, 2003 which seeks to bring about a qualitative
transformation of the electricity sector. The Act seeks to create liberal framework of development for
the power sector by distancing Government from regulation. It replaces the three existing
legislations, namely, Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the
Electricity Regulatory Commissions Act, 1998. The objectives of the Act are "to consolidate the
laws relating to generation, transmission, distribution, trading and use of electricity and generally for
taking measures conducive to development of electricity industry, promoting competition therein,
protecting interest of consumers and supply of electricity to all areas, rationalization of electricity
tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally
benign policies, constitution of Central Electricity Authority, Regulatory Commissions and
establishment of Appellate Tribunal and for matters connected therewith or incidental thereto."

The salient features of the Electricity Act, 2003 are:

1. The Central Government to prepare a National Electricity Policy in consultation with State
Governments. (Section 3)
2. Thrust to complete the rural electrification and provide for management of rural distribution
by Panchayats, Cooperative Societies, non-Government organizations, franchisees etc.
(Sections 4, 5 & 6)
3. Provision for license free generation and distribution in the rural areas. (Section 14)
4. Generation being de-licensed and captive generation being freely permitted. Hydro projects
would, however, need clearance from the Central Electricity Authority. (Sections 7, 8 & 9)
5. Transmission Utility at the Central as well as State level, to be a Government company – with
responsibility for planned and coordinated development of transmission network. (Sections
38 & 39)
6. Provision for private licensees in transmission and entry in distribution through an
independent network, (Section 14)
7. Open access in transmission from the outset. (Sections 38-40)
8. Open access in distribution to be introduced in phases with surcharge for current level of
cross subsidy to be gradually phased out along with cross subsidies and obligation to supply.
SERCs to frame regulations within one year regarding phasing of open access. (Section 42)
9. Distribution licensees would be free to undertake generation and generating companies would
be free to take up distribution businesses. (Sections 7, 12)
10. The State Electricity Regulatory Commission is a mandatory requirement. (Section 82)
11. Provision for payment of subsidy through budget. (Section 65)
12. Trading, a distinct activity is being recognized with the safeguard of the Regulatory
Commissions being authorized to fix ceilings on trading margins, if necessary. (Sections 12,
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79 & 86)
13. Provision for reorganization or continuance of SEBs. (Sections 131 & 172)
14. Metering of all electricity supplied made mandatory. (Section 55)
15. An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. (Section
111)
16. Provisions relating to theft of electricity made more stringent. (Section 135-150)

Provisions safeguarding consumer interests. (Sections 57-59, 166) Ombudsman scheme

(Section 42) for consumers grievance redressal.

Energy Audit
The main purpose of energy audit is to increase the energy efficiency and reduce energy
related costs. Energy audit is not exact science. It involves collection of detailed data and its
analyses. More often sophisticated instruments are used to collect data, but its analyses and
implementation requires technical knowledge, experience and sound judgment. Energy audit is a
fundamental part of an energy management programme (EMP) in controlling energy costs. It will
identify the areas of wasteful and inefficient use of energy.

Definitions and concepts

The successful implementation of individual energy conservation programme depends on a
proper organizational framework and baseline data for identifying and evaluating energy
conservation opportunities. The determination of the baseline data requires a comprehensive and
detailed survey of energy uses, material-energy balances and energy loss. This survey is generally
referred Energy Audit.
To save energy it is necessary to know where, how and how much energy is being consumed.
The objective of energy audits is to characterize and quantify the use of energy within the plant at
various levels in departments, sections, major process and major equipment. The plant energy study
provides a comprehensive and detailed picture not only the type and quantity being used but also
how efficiently it is being utilized and where it is wasted or lost.
The energy audit process includes description of energy inputs and product outputs by major
departments or by major processing functions and it will evaluate the energy efficiency of each step
of the manufacturing process. That mean improving these will be listed and preliminary assessment
of the cost of these improvements will be made to indicate the expected payback on any capital
investment needed.
Aims of the energy audit
1. To identify the main users and quantify their annual energy consumption.
2. To ascertain the optimized energy data.
3. To determine the availability of energy and product output data.
4. To investigate the distribution systems for the site services and note any existing metering.
5. To prepare energy and process flow diagrams for the site.

Types of Energy Audit

The energy audit is normally carried out by Preliminary Energy Audit and Detailed Energy
Audit.

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Preliminary Energy Audit/ House Keeping Practices

Considerable savings are possible through small improvements in the ‘house keeping’
practices and the cumulative effect of many such small efficiency improvement could be quiet
significant. These can be identified by a short survey, observation and measurements.

Approach to preliminary energy audit

Preliminary energy audit essentially involves preliminary data collection and analyses. The
preliminary energy audit is based on collection of available data, analysis, observation and inference
based on experience and judgment is carried out within a short time.
The preliminary energy audit is the first step in implementing and energy conservation
programme and consists of essentially collection and analyzing data without the use of instruments.
The ability and experience of the energy auditor will influence the degree of its success.
Normally the results of the audit would depend on…..
 Experience of the auditor.
 Availability and completeness of data.
 Depth of analysis of available data.
 Physical size of the facility.
 Complexity of operations within the facility.
 Awareness of energy matters within the facility.

Broadly the preliminary energy audit is carried out in six steps…..

1. Organize resources
a. Man power
b. Instrumentation
2. Identify the data requirements
a. Data forms
3. Collect the data
a. Conduct informal interviews
i. Senior management
ii. Energy manager/Coordinator
iii. Plant engineer
iv. Operator, production management and personnel
v. Administrative personnel
vi. Financial manager
b. Conduct plant walkthrough/Visual inspection
i. Material/ energy flow through plant
ii. Major functional departments
iii. Any installed instrumentation
iv. Energy report procedures
v. Production and operational reporting procedures
vi. Conservative opportunities
4. Analyze data
a. Develop data base
i. Historical daa for all energy suppliers
ii. Process flow sheets
iii. Energy consuming equipment
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b. Evaluate data
i. Energy use, consumption, cost and schedules
ii. Plant operations
iii. Energy consumption indices
iv. Energy saving potential
v. Plant energy management programme
5. Develop action plan
a. Conservation opportunities for immediate implementation woth no or very little
investment
b. Projects for further study
c. Resources for detailed energy audit
i. System for test
ii. Instrumentation
iii. Man power requirements
d. Refinement of corporate energy management programme
6. Implementation
a. Implementation identified low cost or no cost projects
b. Perform detailed energy audit.

The preliminary energy audit, as the name implies a preliminary data collection and its
analysis process. Readily available data on the plants energy systems and energy using processes or
equipment are obtained and studies. The operation and condition of equipment are observed by going
around the plant. These provides basis to develop recommendations for immediate short term
measures and to provide quick & rough estimations of savings that are possible and achievable. A
preliminary study usually identifies and assesses obvious areas for energy savings such as steam
leaks, compressed air leaks, poor or missing insulation etc and serves to identify specific areas for
the detailed plant energy study.

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

Detailed Energy Audit (DEA)

This would be a comprehensive energy efficiency study using portable energy monitoring
instruments. The essential part of this audit is carrying out various measurements and analyses
covering individually every significant energy consuming plant item/processes, to determine their
efficiencies and loss of energy at that point, and potential energy savings are explored and
crystallized, and every recommendation for investment is supported by criteria such as pay-back
analysis.

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Ten steps methodology for DEA

STEP PLAN OF ACTION PURPOSE / RESULTS

Phase-I: Pre Phase Audit • Resource planning, Establish/organize Energy audit

Step-1 ✓ Plan and Organize team.
✓ Walk through Audit • Organize Instruments & time frame
✓ Informal Interview with Energy • Macro Data collection (suitable to type of industry.)
Manager, Production / Plant • Familiarization of process/plant activities
Manager • First hand observation & Assessment of current
level operation and practices.
Step-2 ✓ Conduct of brief meeting / • Building up cooperation
awareness programme with all • Issue questionnaire for each department
divisional heads and persons • Orientation, awareness creation.
concerned (2-3 hrs.)
Phase-II: Audit Phase • Historic data analysis, Baseline data collection
Step-3 ✓ Primary data gathering, Process • Prepare process flow charts
Flow Diagram, & Energy • All service utilities system diagram (Example:
Utility Diagram 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 monitoring • Measurements:
Motor survey, Insulation, and Lighting survey with
portable instruments for collection of more and
accurate data. Confirm and compare operating data
with design data.
Step-5 ✓ Conduct of detailed trials / • Trials/Experiments:
experiments for selected energy o 24hours power monitoring (MD, PF, kWh etc.).
guzzlers o Load variations trends in pumps, fan
compressors etc.
o Boiler/Efficiency trials for (4-8 hours)
o Furnace Efficiency trials Equipments
Performance experiments etc.,
Step-6 ✓ Analysis of energy use • Energy and Material balance & energy loss/waste
analysis.
Step-7 ✓ Identification and development • Identification & Consolidation ENCON measures.
of Energy Conservation • Conceive, develop, and refine ideas
(ENCON) opportunities. • Review the previous ideas suggested by unit
personal
• Review the previous ideas suggested by energy
audit if any
• Use brainstorming and value analysis techniques
• Contact vendors for new/efficient technology.
Step-8 ✓ Cost benefit analysis • Assess technical feasibility, economic viability and
prioritization of ENCON (Energy Conservation)
options for implementation.
Step-9 ✓ Reporting & Presentation to the • Documentation, Report Presentation to the top
Top Management Management.
Phase-III: Post Audit Phase Assist and Implement ENCON recommendation
Step-10 ✓ Implementation and Follow-up measures and Monitor the performance
• Action plan, Schedule for implementation
• Follow-up and periodic review

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15 Energy Auditing and Demand Side Management

The detailed plant energy study is a comprehensive analyses evaluation of all aspects of
energy generation, distribution and utilization within the plant. At the plant level, the analyses
require time series data on a daily, monthly, or yearly basis, on the quantities of all forms of primary
energy flowing into the plant, e.g. coal, fuel oil, electricity, etc. and production figures of major
products, by-products and waste products, at the department or section level. Information is required
on the quantity of energy forms consumed, and the production figures of intermediate products. At
the equipment level, in addition to the quantities of energy forms and material products, process
parameters such as temperature, pressure, flow rate, etc. are also required.
Data generation and collection is an essential and critical element of a detailed energy audit
study. Difficulties in getting data required generally arise due to unavailability of historical records.
The acquisition of actual operating data through existing or new permanently installed instruments or
portable test instruments cannot be overemphasized in this context.
The duration of DEA studies depends on plant size and complexity. Whereas the preliminary
energy study can be carried out in a few days, the detailed study would require anywhere from few
weeks to months to years of effort.
Plant energy studies can be carried out in house if adequate resources and expertise exist for
doing so. Alternatively or additionally, external assistance may be sought from energy consultants,
equipment suppliers, and engineering and design firms, in either case, intense interaction between
plant personnel and the study team is essential for a proper understanding and a meaningful analysis
of the plants energy options. Too often, the plant energy study is considered to be the consultant’s
problem, resulting in minimal inputs and involvement from plant personnel. This attitude is counter-
productive. Without the active participation of all levels, full benefits cannot be expected to be
accomplished.

Energy Consumption Monitoring

Energy Consumption is to monitor, assess by a company/industry and compared with a
specific products manufactured by the industry can be done by two parameters as follows.
They are,
1. Energy Index
2. Cost Index
Energy index
Energy index is a useful parameter to “monitor and compare energy consumption of specific
products manufactured by the industry”.
Energy index is the figure obtained by dividing energy consumption by production output,
and the index may be calculated weekly, monthly or annually. Although the total energy indices are
sufficient for monitoring purposes, a record of the individual energy indices should be maintained. In
the event of an increase or decrease (due to perhaps a conservation measure) in energy index, the
particular source can be investigated immediately.

Total energy consumption

Energy Index (EI)= (based on weekly, monthly & annually)
Total production output

Energy may be purchased in various units, for example, coal in tons; gas in ft 3,m3, therms; oil
in gallons, litres, tons, barrels etc. the relevant conversion units from one system to the other are
given below:

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To determine the heat available from the fuel, it is necessary to know the calorific value per
unit quantity of energy form and this data is also given in the following example. Further, when
estimating the total energy used by a company that consumes several energy forms, it is convenient
to rationalize the heat units to common basis.

Cost Index
The cost index is another parameter which can be used to “monitor and assess energy
consumption by a company”. The cost index is defined as the cost of energy divided by the
production output. An individual cost index can be determined for each energy form and for the total
energy consumption by the company.

Total cost of energy

Cost Index (CI)=
Total production output
Representation of Consumption
Several methods of representing energy flows and energy consumption are available and
these may be graphical or tabular. Most among them are the “pie chart and the sankey diagram”.

Pie chart
Energy usage is plotted on a circular chart where the quantity of a particular type is
represented as a segment of a circle. The size of the segment will be proportional to the energy
consumption using a particular fuel (energy form or source) relative to total energy use. The energy
units must be rationalized to the same units.

Example:
A company uses on an hourly basis 13.65 therms of gas, 500x103 W electricity and 4.32x109 J oil.
Represent these energy consumptions in a pie chart.
Sol:
The results may all be expressed in watts as follows:
Gas = 13.65 * 29.30 = 400kWh
Electricity = 500kWh
9 -7
Oil = 4 .32x10 x2.78x10 = 1200kWh
Total hourly energy consumption = 2100kWh
The pie chart can be represented as follows
Consequently, the angles occupied by the segment are:
Gas = (400x103/2100x103)x360 = 680
Oil = (1200*103/2100*103)x360 = 2060
Gas = (500x103/2100x103)x360 = 860

Energy Consumption
Electri Gas
city 68
86

Oil
206

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17 Energy Auditing and Demand Side Management

Sankey diagram
Following Figure shows a Sankey diagram which represents all the primary energy flows into
a factory. The widths of the bands are directly proportional to energy production (source), utilization
and losses. The primary energy sources are gas, electricity and coal/oil (say, for steam generation)
and represent energy inputs at the left-hand side of the Sankey diagram.

Sankey diagrams are quite difficult to construct as measurements must be made for all energy
flows and this will involve considerable metering and instrumentation. However, the picture can be
gradually built up starting from gas and electricity before going on to steam. The construction of a
Sankey diagram is an excellent exercise in energy management and its value is in highlighting losses
which one never knew existed.
For the purpose of monitoring and checking energy consumption and usage on a weekly or
monthly basis, pie charts and Sankey diagram are relatively difficult. An alternative method of
monitoring energy consumption on a time-dependent basis is to use load profiles.

Load Profiles (Histogram)

The usages of oil, gas and electricity in a plant can be plotted on a graph as shown in
following Figure. The results illustrate seasonal variations and perhaps variations in production
schedules. This technique has the major advantage that after a period of time, energy consumption
patterns emerge and it is possible to tell at a glance if an area is exceeding its predicted value. An
overall load profile equivalent to several pie charts and sankey diagrams can be obtained by plotting
the previous profiles can be also drawn.

Load factor — The ratio of the average load over the peak load. Peak load is normally the maximum
demand but may be the instantaneous peak. The load factor is between zero and one. A load factor
close to 1.0 indicates that the load runs almost constantly. A low load factor indicates a more widely
varying load. From the utility point of view, it is better to have high load-factor loads. Load factor is
normally found from the total energy used kilowatt-hours.

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18 Energy Auditing and Demand Side Management

Energy Conservation Schemes

Development of an energy conservation programme can provide savings by reduced energy
use. However, it is economical to implement an energy conservation program only when savings can
offset implementation cost over a period of time. Potential areas of conserving energy and a logical
analysis of the methods or techniques of conservation would provide a systematic and disciplined
approach to the entire conservation strategy as a sequel to the energy audit. Some established
conservation trends are replacement, retrofit, process innovation, fuel conversion and co-generation.
It is generally considered that investment for energy conservation should be judged by
exactly the same criteria as for any other form of capital investment. Energy conservation measures
may be classified on an economic basis and fall into the following three categories:
1) Short term: These measures usually involve changes in operating practices resulting in little
or no capital expenditure.
2) Medium term: Low-cost modifications and improvements to existing equipment where the
pay-back period is less than two years and often under one year.
3) Long term: Modifications involving high capital costs and which frequently involve the
implementation of new techniques and new technologies.
While the first two categories together can achieve savings of the order of 5-10%, capital
expenditure using existing and new technology may achieve a further 10-15%. It is impossible to
give a comprehensive list of all items in each category but selected examples are given for each
section.

Short-term energy conservation schemes

Items in this group can be considered as a tightening of operational control and improved
housekeeping.
a. Furnace efficiencies: greater emphasis should be placed on minimum excess combustion air.
Oxygen levels of flue gases should be continually monitored and compared with target
values. Oil burners must be cleaned and maintained regularly.
b. Heat exchangers: in the case of heat exchangers where useful heat is transferred form
product streams to feed streams, careful monitoring of performance should be carried out to
determine optimum cleaning cycles. Frequency of cleaning will generally increase as a result,
with consequent improved heat recovery.
c. Good housekeeping: doors and windows should be kept closed as much as possible during
the heating season. Wear natural light is sufficient, do not use artificial light. Avoid excessive
ventilation during the heating season. Encourage staff to wear clothing appropriate to the
temperature of the working areas.
d. Use of steam: major steam leaks should be repaired as soon as possible after they occur:
often a firm specializing in ‘on stream’ maintenance can be used. One crude distillation
columns where live steam is used for stripping purposes, the amount required should be
optimized and carefully controlled.
e. Electrical power: in industries where all the electrical power is ‘imported’, conservation
measures can reduce the annual electricity costs by 10-15%. Steam driven turbines may prove
more economical as prime movers. Natural air cooling may be sufficient and therefore
induced-draught fans may be taken out of commission. Pumping costs can sometimes be
saved by utilizing gravity to move products from one tank to another. Where possible, use
off-peak electricity.

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19 Energy Auditing and Demand Side Management

Medium-term energy conservation schemes

Significant savings in energy consumption are often available for quite modest outlays of
capital based on a pay-back period of less than two years.
a. Insulation: Improving insulation to prevent cold air leaking into the building and also,
improving insulation of the steam distribution system. In addition, in older plants lagging
may have deteriorated to varying degrees.
b. Heating systems: Improving the time and temperature control of the heating systems in
buildings should result in substantial energy savings.
c. Replacing air compressors
d. Instrumentation: to measure and control the energy conservation parameters, adequate
instrumentation must be provided or operators will soon lose interest in maintaining
efficiencies if they are working with inadequate and unreliable instruments.
e. Process modifications: Many of these schemes will depend on the nature of the industry
concerned, however, one general scheme will be considered. Steam condensate, if
uncontaminated, may be used as boiler feed water. Improved condensate return systems can
increase the amount recovered. The effect will be to increase the heat recovered in the
condensate and at the same time reduce raw water and treatment costs.
f. Burners: the control and amount of atomizing steam is important and often in furnaces and
boilers the amount of atomizing steam is far in excess of design.
g. Electrical Power Savings: considerable savings may be made by adjusting the electrical
power factor correction. For example capacitors can be installed.
To increase plant capacity two feed pumps may be run in parallel to achieve the required feed rate.
When replacement, for mechanical reasons, becomes necessary it is more economical to replace the
pumps by a single pump having a higher capacity.

Long-term energy conservation schemes

To obtain further economics in energy consumption required the spending of significant
amounts of capital, although, in many cases, the return on capital for the long-term investment may
not be as good as that of the medium term. Full financial evaluation is needed, using the appraisal
techniques discussed in unit-V, to ensure that investment is economically viable.
a. Heater modifications: the installation of heating tubes and air pre-heaters to extract more
heat from furnace flue gases.
b. Improved Insulation: Additional lagging of heated storage tanks. This type of project often
comes within the medium-term group.
c. Heat recovery: Improved heat recovery in the processing areas by additional heat exchange
schemes.
Many of the energy projects that have been outlined may be adopted by a wide variety of
companies. However, some are more specific in their application and it is necessary to consider the
contribution of energy costs to companies and energy usage by different industries.

Measurements in Energy Audit

Measurements are critical in any serious effort to conserve energy. Apart from helping to
quantify energy consumption, measurements also provide a means to monitor equipment
performance and check equipment condition. Examples of measurements and instrument types are:
1. Flow/Velocity: Orifice plate, pitot tube, Venturi tube, turbine meter, vortex shedding flow
meter, ultrasonic flow meter.
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20 Energy Auditing and Demand Side Management

2. Temperature: Thermometers – Bimetallic, Resistance etc., Thermocouple, Radiation

pyrometer.
3. Pressure: Bourdon gauge, Diaphragm gauge, manometers
4. Stack Gas Analysis: Orsat apparatus, Oxygen analyzers, carbon dioxide analyzers, Carbon
monoxide analyzers.
5. Heat Flow: Thermograph equipment
6. Electrical: Multi-meter, Ammeter, Wattmeter, Power Factor meter, Light meter
7. Stream Trap Testing: Stethoscope, Ultrasonic Detector
Analyses, evaluation and interpretation of data lead to identification of various measures that
would save energy. These measures are then evaluated with regard to their technical and economic
feasibility resulting in recommendations for further action

Electrical Measuring Instruments

These are instruments for measuring major electrical parameters such as kVA, kW, PF,
Hertz, VAr, 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.
Ammeter: it measures the current absorbed by appliances and motors.
Voltmeter: it measures the voltage or voltage drop in the grid or electrical circuits.
Watt-meter: it measures instant power demand of appliances/motors or the power performance of
generators.
Power factor meter: it measures the power factor or monitors the rectification devices.
Multi-meter: it measures all the above quantities.
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.
All the above instruments are usually portable. They are connected to the wiring with the use
of nippers and they could feature a data-logger. Measurements of electrical power and energy
consumption should be made on all energy intensive areas and installations. Since these instruments
are generally not expensive, it is advised to examine their permanent installation in some of the
above cases.
During the measurement of all the above quantities, a strict distinction must be made between
the total power (metered in kVA) and the active power (usually metered in kW), as well as of Cos.
Care is also needed with electrical loads that are not expected to present a sinusoidal waveform, as is
the case with variable speed motors and UPS. Usual measuring instrumentation is based on a
sinusoidal waveform, which gives wrong readings. In such cases, the use of meters measuring real
RMS (Root Mean Square) values is necessary. The function of such meters is based on digital
sampling, so they could be substituted with PC-based meters.

Temperature measurement
PC-based temperature meters are already available in respective shops. The most usual
measuring technologies include:
a) Resistance Thermometer Detectors (RTD):
From the most technologically advanced instruments. They feature internal signals for
calibration and resetting. They are very accurate and are used as permanent instruments in M&A
(Measurement and Analysis) applications.
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21 Energy Auditing and Demand Side Management

b) Thermocouples:
They are widely used and are not expensive. They cover a wide range of temperatures, from a
few degrees up to 1000oC and are usually portable. They need frequent calibration with specialized
instruments. Their main disadvantage is that they have a weak signal, easily affected by industrial
noise.
c) Thermistors:
They are used as permanent meters and are of low cost. They are characterized by a strong,
linear in variation with temperature signal and have an automatic resetting capability. Still this type
and the thermocouple are not usually found in M&V (Measuring & Verification) set-ups.
d) Infrared thermometers:
They measure temperatures from a distance by sensing the bodies’ thermal radiation. They
sense hot-spots and insulation problem areas. Portable and easy to use but with limited accuracy;
they also require the knowledge of the emissivity coefficient.
This is a non-contact type measurement which when directed at a heat source directly gives
the temperature read out. This instrument is useful for measuring hot spots in furnaces, surface
temperatures etc.

Flow measurements
To estimate heat flow through a fluid, it is necessary to measure its flux (mass or volume).
Such measurements typically include air and liquid fuel, steam and hot/cold water or airflow
measurements. Combined with heat measurement, they provide an estimation of heat supply.
Installation of fuel flow meters is compulsory for all large boilers and furnaces. It is also
recommended on steam networks and on hot water installations, used in process and boiler rooms.
Combining a measurement of temperature difference with flow measurement, allows for the
measurement of the thermal and energy flows.
The meter should be carefully selected, taking into account the fluid type, any diluted and
corrosive substances, the speed range and the relevant costs. Flow-metering sensors can be classified
as follows:
 Differential pressure meters (of perforated diaphragm, Venturi or Pitot tube type)
 Interference meters (of variable cross section, positive shift, eddy or vortex metering type)
 Non-interference meters (of ultrasonic or magnetic meter type)
 Mass meters (of Coriolis or angular momentum type)
From the above flow meters, the portable ones are usually the Pitot tube and non-interference
meters. Picot tubes are usually accompanied with an electric manometer for speed measurement.
Ultrasonic meters technology has also progressed, offering accuracy close to 1-2%. They require
relatively pure fluids and are easy to use. They are installed simply with the use of nippers on the
measured tubing.
The most usual meters for permanent heat flow measurements are the eddy type or vortex-
meters. Additionally, hot wire anemometer type instruments are used, either as portable or permanent
meters. During fluid flow measurements, the instructions of the instrument’s manufacturer must be
closely followed. Attention should also be paid, to calibrate the meters frequently, as their calibration
is most difficult.

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Presentation of Energy Audit Report

Each report should include:
1. Title Page
• Report title
• Client name (company for which facility has been audited)
• Location of the facility
• Date of Report
• Audit contractor name
2. Table of Contents
3. Executive Summary
All information in the Executive Summary should be drawn from the more detailed
information in the full report. The Executive Summary should contain a brief description of
the audit including:
• Name, plant(s), location(s) and industry of the company audited
• Scope of the audit
• Date the audit took place
• Summary of baseline energy consumption presented in table form. Baseline
energy
• Consumption refers to the energy used annually by the facility/system
audited.
• Results:
- Assessment of energy-consuming systems
- Identification of EMOs and the estimated energy, greenhouse gas
(GHG), and cost savings associated with each option along with the
related cost of implementing the measures and the expected payback
period. This material should be presented in table form. In the event
that an audit covers more than one facility, the statistics for each
facility should be reported on an individual basis to the extent
possible.
• Recommendations summarized in table form.
4. Introduction
The Introduction should include:
• Audit Objectives: a clear statement that defines the scope of the energy
audit in clear and measurable terms - example, space(s), systems and/or
process(es) to be audited
• Background Information: a description of the location of the facility where
the audit will be conducted, as well as information regarding facility layout,
products/services produced/distributed, operating hours including seasonal
variations, number of employees and relevant results of previous energy
initiatives.
5. Audit Activity and Results
This section should make reference to:
• Description of the audit methodology (techniques - e.g. inspection,
measurements, calculations, analyses and assumptions)
• Observations on the general condition of the facility and equipment

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23 Energy Auditing and Demand Side Management

• Identification / verification of an energy consumption baseline in terms of

energy types, units, costs and greenhouse gas (GHG) emissions for the
facility/system being assessed
• Results of the audit including identification of EMOs and the estimated
energy, GHG, and cost savings associated with each measure as well as the
required investment and payback period associated with each of the EMOs
identified.
6. Recommendations
This section should list and describe the recommendations that flow from the
identification of EMOs and may include details concerning implementation. An
explanation should be provided for recommending or not recommending each EMO
identified in the results.
7. Appendices
Appendices include background material that is essential for understanding the
calculations and recommendations and may include:
• Facility layout diagrams
• Process diagrams
• Reference graphs used in calculations, such as motor efficiency curves
• Data sets that are large enough to clutter the text of the report.

General Points on Report Writing

Grammar and Style:
The report should be grammatically correct. The language should be clear, concise and
understandable by all readers. The writer should avoid jargon.
Documentation:
All numbers related to the results should be supported by information indicating how they
were derived. This includes all savings, investment and payback information.
Mathematical Accuracy:
All calculations should be checked for mathematical accuracy. Where, for example, a table
showing the breakdown and total of energy use or costs is included in the report, the total of the
numbers in the breakdown should equal the amount shown as the total. If, for some reason, this is not
the case, there should be a note explaining why the discrepancy is appropriate. Similarly, if numbers
used in the full report differ from corresponding numbers shown in the Executive Summary, the
report should contain a note or notes explaining why the discrepancy is appropriate.
Logical Consistency:
The results should be logically consistent. For example, separate summaries in the report may
use different bases for calculating energy savings. One summary might be based on energy savings
related to the recommended measures while a second summary might be based on energy savings
related to both recommended and non-recommended measures. If such a logical inconsistency is
considered necessary by the auditor, it should be explained in a note and in the example above, both
tables should be referenced to the note.
Illustrations:
Graphs and charts may be used to spark interest in the report and implementation of the
recommendations but should not be used as a substitute for numerical data.

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