Energy Management

& Audit
Definition of Energy
Management
The strategy of adjusting and optimizing
energy, using systems and procedures so as
to reduce energy requirements per unit of
output while holding constant or reducing
total costs of producing the output from these
systems
The judicious and effective use of energy to
maximize profits (minimize costs) and enhance
competitive positions
Objective of Energy Management
To achieve and maintain optimum
energy procurement and utilisation,
throughout the organization

To minimise energy costs / waste
without affecting production & quality

To minimise environmental
effects.

Definition of Energy Audit
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
Types of Energy Audit
Preliminary energy audit
Detailed energy audit

Type of energy audit chosen
depends on
Function and type of industry
Depth to which final audit is needed
Potential and magnitude of cost
reduction desired
Preliminary Energy Audit Methodology

Preliminary energy audit uses existing, or easily
obtained data
Establish energy consumption in the
organization
Estimate the scope for saving
Identify the most likely areas for attention
Identify immediate (no-/low-cost) improvements
Set a reference point
Identify areas for more detailed
study/measurement
Detailed Energy Audit
Evaluates all energy using system,
equipment and include detailed
energy savings and costs

Carried out in 3 phases
Pre-audit Phase
Audit Phase
Post-Audit

Understanding Energy costs
Conversion to common unit of energy
Electricity (1 kWh) = 860 kcal/kWh (3600 KJ)
Heavy fuel oil (calorific value, GCV) =10000 kcal/litre (42000 KJ/litre)
Coal (calorific value, GCV) =4000 kcal/kg ( 18*106 KJ/ton)
1 K Cal = 4.187 KJ
10
Benchmarking for energy performance
Internal Benchmarking
Historical and trend analysis
External Benchmarking
Across similar industries
Scale of operation, vintage of technology,
raw material specification and quality
and product specification and quality
Bench Marking Energy
Performance
Quantification of fixed and variable energy
consumption trends vis--vis production
levels
Comparison of the industry energy
performance w.r.t. various production levels
(capacity utilization)
Identification of best practices (based on the
external benchmarking data)
Scope and margin available for energy
consumption and cost reduction
Basis for monitoring and target setting
exercises
Benchmarking parameters



Gross production related
e.g. kWh/MT clinker or cement produced (cement plant)
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)

Equipment / utility related
e.g. kWh/ton of refrigeration (on Air conditioning plant)
e.g. % thermal efficiency of a boiler plant
e.g. kWh/NM
3
of compressed air generated
e.g. kWh /litre in a diesel power generation plant.

Specific Energy Norms for Textile Sector
Energy consumption varies from 3 to 3.5 kWh of
electricity per kilogram of yarn in a modernized
spinning mill. In the case of weaving, it varies
from 2.9 to 3.1 kWh per meter of fabric. For
knitting units, the energy consumption stands
at 0.09 to 0.2 kWh per kg of fabric. In the case of
dyeing it is 0.04 to 0.15 kWh per kg of fabric.
Steam consumption in a fabric dyeing unit may
vary from 4 to 9 kg of steam per kg of fabric.
-For Captive Power Generataion sets more than 1000 KVA or 1-2 MW
the SEC i 0.29 to 0.32 Nm3 per kwh for average 880 btu/cfm to 960
btu/cfm.(No proper tuning/Underloading or unequal load balancing leads
to higher energy cosumption/kwh)

- Specific Oil Consumption in Reheating Furnances in Steel Sector
should be 75-80 liters per ton (Convert it into equivalent Gas calorific
value and volume) but it varies from 115 to 130 liters normally.

-Cement Sector limit is given below.
SEC Thermal 665-995 kcal/kg of clinker .SEC Electrical 66-127 Kwh/
ton of Cement.
-Ammonia is the intermediate product in Urea production. Out of total energy consumed for the
production of Urea, 80% is consumed in Ammonia production. Hence, efficient production of
Ammonia has greatest impact on Specific Energy Consumption. Hence, efficient production of
Ammonia has greatest impact on Specific Energy Consumption.

Specific Energy Consumption by Feedstock Type (GJ/tonne NH3 ) Gas based
Ammonia 35.54 - 36.5
The best practice energy intensity worldwide is 28 GJ/Tonne of ammonia
Urea 24.99 - 26.5
The best practice energy intensity worldwide is 20 GJ/Tonne of

Maximizing system efficiency
Eliminate steam leakages by trap
improvements
Maximise condensate recovery
Adopt combustion controls for
maximizing combustion efficiency
Replace pumps, fans, air compressors,
refrigeration compressors, boilers,
furnaces, heaters and other energy
conservation equipment, wherever
significant energy efficiency margins exist
Matching Energy Usage to Requirement

Mismatch between equipment capacity and
user requirement often leads to inefficiencies
due to part load operations, wastages etc
Examples :
Eliminate throttling
Eliminate damper operations
Fan resizing for better efficiency.
Moderation of chilled water temperature for process
chilling needs

Optimising Input Energy
Requirement
Shuffling of compressors to match needs.
Periodic review of insulation thickness
Identify potential for heat exchanger
networking and process integration.
Optimisation of transformer operation
with respect to load
Fuel and Energy Substitution
Fuel substitution
Natural gas is increasingly the fuel of choice as
fuel and feedstock in the fertilizer, petrochemicals,
power and sponge iron industries.
Replacement of coal by coconut shells, rice
husk,etc
Replacement of LDO by LSHS

Energy substitution
Replacement of electric heaters by steam heaters
Replacement of steam based hot water by solar
systems
Seven Steps to Energy and Cost
Reduction
1. Understand the Cost of
Energy
2. Compare Yourself
3. Understand When Energy is
Used
4. Understand Where Energy
is Used
5. Eliminate Waste
6. Maximize Efficiency
7. Optimize Energy Supply
Understand Demand Charges
Cost to Operate:
Off Peak
Time
approx $8
On Peak Time
approx $330
50 kW
heater for
5 hours
0
50
100
150
200
250
300
0 5 10 15 20 25
Heat DD (15C HDD/day)
G
a
s

(
G
J
/
d
a
y
)
Duration
Example: Fuel Use in a Hospital
-20,000
-15,000
-10,000
-5,000
-
5,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37
Month
C
u
m
u
l
a
t
i
v
e

S
a
v
i
n
g
s

i
n

G
a
s

(
G
J
)
Example: Office Building Peak at 7am
GVRD Head Office - 4330 Kingsway
Electrical Demand - January 14, 2002
0
100
200
300
400
500
600
700
800
900
1
2
:
0
0

A
M
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A
M
D
e
m
a
n
d

(
k
W
)
Identify Largest Areas of Consumption
Choose Your Facility Type:
Annual Electricity Cost Breakdown
Refrigeration 57% $56,000
Lighting 20% $20,000
Ventilation 9% $9,000
Office Equip. 5% $5,000
Heat & Cool 3% $3,000
Service Water 3% $3,000
Miscellaneous 3% $3,000
Large Grocery
Typical Electricity Cost Breakdown
Lighting
Heat & Cool
Office Equip.
Refrigeration
Miscellaneous
Ventilation
Service Water
THANK YOU