ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

UNIT 1
Basics of Energy Management and Conservation

• Define the following terms with three examples of each.

a. Primary and secondary Energy
b. Commercial and Non-commercial Energy.
c. Renewable and Non-renewable Energy. (7M S-16,W-16)
• Discuss the criterions for classification of energy into different types. (7M W-17)

1.1 Introduction
Energy can neither be created nor destroyed. The amount of energy in the universe remains
constant; when we use energy, we do not use it, in fact we transform it from one form of energy to
another. Energy is involved in each and every action occurring in the universe; including activities
performed within and by a human body, physical actions like the shining sun, revolution of planets
around the sun, motion of the tides, growth and decay of plants and animals. Energy is one of the most
important resources for the economic development of any country.
Energy efficiency
It means identifying use of wasted energy and taking action to reduce or eliminate the wastage
of energy. The objective of energy efficiency initiatives is to reduce energy costs and consequently
increase profitability without sacrificing production. Energy efficiency should be given much priority
which reflects the overall cost of energy both on an absolute and relative basis compared to other costs
incurred by the company. With economic development, the demand for energy in the country will grow
phenomenally in every segment of the economy and society. It would be therefore necessary to
understand the importance and means to achieve energy efficiency and ensure the cost of energy and
its availability do not cause any hindrance to development.

1.2 Classification of Energy

Energy can be classified into several types based on the following criteria:

Classification
of Energy

22
Primary & 111
Commercial
Non-
Waste
Secondary Commercial
Owos
Renewable &
Non-
Renewable

1.2.1 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. Energy obtained from such primary and
secondary sources are termed as Primary and secondary energy.
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

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

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.
The major primary and secondary energy sources are shown in Figure 1.2.1

Figure 1.2.1
1.2.2 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

Commercial Energy
Production worldwide

1%
6%
6%
37%
24%
26%

Oil Coal Gas Nuclear Hydro Wind 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
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

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.

1.2.3 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 Figure 1.2.3). 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.

Figure 1.2.3
Renewable resources are available in various different forms. The forms are as follows:
Bio-mass
• Bio-mass is a renewable source of energy produced when the sun’s radiant energy is transformed
into chemical energy by plants in a process called photosynthesis.
• Bio-mass energy is the oldest form of energy used by humans, and for thousands of years it is the
main source of energy for human activity.
• Bio-mass is the most important source of energy which supports the life processes of humans and
other animals.
• Wood, crops, and grasses are all primary sources of bio-mass; secondary sources include forest,
agricultural, and food manufacturing wastes as well as garbage.
• Bio-mass is used to generate electricity, fuel vehicles, and produce heat for climate control and
manufacturing.
• The fermentation of grains (principally corn) in the United States produces ethanol (a fuel). It is
blended with gasoline to be used as a transportation fuel.
• Gasification converts decaying bio-mass in landfills and biogas digesters into methane gas, the main
ingredient in natural gas.
• Use of bio-mass energy does not produce a significant net increase of carbon dioxide in the
atmosphere.

Bagasse as Bio-mass
Bagasse is used as fuel to generate steam, which in turn, is used to generate power and process steam
(cogeneration plant). In view of lesser fuel cost (since it is a byproduct), this proves to be the most
economical fuel for cogeneration.

Wind Energy
Wind energy is one of the viable sources of renewable energy, which can be used effectively for power
generation. Power generation from wind energy depends on:
• Wind speed
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

• Duration of availability (blowing time of wind)

• Feasibility of distribution and usage etc.

Hydro Energy
• Hydropower is a renewable source of energy.
• Water continuously moves through a global cycle; evaporating from lakes and oceans, forming
clouds, precipitating as rain or snow, and flowing back to the oceans. This water cycle is produced
by the sun and driven by gravity.
• Hydropower facilities can capture the energy in flowing water by building a dam on a river
(impoundment), or channeling a portion of a river through a diversion.
• Hydropower is considered an efficient, cost-effective and clean energy source to generate
electricity.
• Hydropower plants return the water to the system unchanged in quantity and quality.

Solar Energy
• Solar energy can be converted directly or indirectly into other forms of energy, example heat and
electricity.
• The major drawbacks of solar energy are;
• The intermittent and variable manner in which it reaches the
earth’s surface.
• The area required to collect it at a useful rate has to be large
in size.
• Electric utilities use photovoltaic devices, wherein solar energy is converted directly to electricity.
• Electricity can be produced indirectly from steam generators using solar thermal collectors to heat
a working fluid.
Tidal Energy
• The worldwide wave power resource potential is huge.
• Future Energy Solutions highlight that the global power potential has been estimated to be
around 8,000-80,000TWh/y (1-10TW), which is the same order of magnitude as world
electrical energy consumption.
• The best wave climates, with annual average power levels between 20-70 kW/m of wave front
or higher are found in the temperate zones (30-60degrees latitude), where strong storms occur.

Geothermal Energy
• Geothermal energy is considered a renewable source of energy.
• It is heat energy produced within the earth. It is continuously generated by the decay of radioactive
elements in the earth’s core.
• The most active, high temperature geothermal resources are usually found along major plate
boundaries where earthquakes and volcanoes are concentrated.
• Geothermal reservoirs are formed by rainwater seeping through faults in the earth’s crust into
porous and permeable hot rocks.
• Most geothermal reservoirs contain a mixture of steam and hot water. Once the water has been used,
it is injected back into the ground.
• Properly managed geothermal reservoirs can have extensive life spans.

1.3 Global & Indian Energy Scenario

1.3.1 Global Primary Energy Reserves

Coal
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

The proven global coal reserve was estimated to be 9 and 84,453 million tones by the end of 2003. The
USA had the largest share of the global reserve (25.4%) followed by Russia (15.9%), China (11.6%).
India (4th in the list with 8.6%).
Oil
The proven global oil reserve was estimated to be 1147 billion barrels by the end of 2003. Saudi Arabia
had the largest share of the reserve with almost 23%. (One barrel of oil is approximately 160 litres)
Gas
The proven global gas reserve was estimated to be 176 trillion cubic metres by the end of 2003. The
Russian
Federation had the largest share of the reserve with almost 27%.
(Source: BP Statistical Review of World Energy, June 2004)
World oil and gas reserves are estimated at just 45 years and 65 years respectively. Coal is likely to last
a little over 200 years

1.3.2 Global Primary Energy Consumption

The global primary energy consumption at the end of 2003 was equivalent to 9741 million tonnes of oil
equivalent (Mtoe). Fig. 1.3.2 shows in what proportions the sources mentioned above contributed to
this global figure.

Fig. 1.3.2 Global primary energy consumption

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The primary energy consumption for few of the developed and developing countries is shown in Table
1.3.2. It may be seen that India’s absolute primary energy consumption is only 1/29th of the world,
1/7th of USA, 1/1.6th time of Japan but 1.1, 1.3, 1.5 times that of Canada, France and U.K respectively.
In Million tonnes oil equivalent

Country Oil Natural Gas Coal Nuclear Hydro Total

Energy electric
USA 914.3 566.8 573.9 181.9 60.9 2297.8

Canada 96.4 78.7 31.0 16.8 68.6 291.4

France 94.2 39.4 12.4 99.8 14.8 260.6

Russian
Federation 124.7 365.2 111.3 34.0 35.6 670.8

United
Kingdom 76.8 85.7 39.1 20.1 1.3 223.2

China 275.2 29.5 799.7 9.8 64.0 1178.3

India 113.3 27.1 185.3 4.1 15.6 345.3

Japan 248.7 68.9 112.2 52.2 22.8 504.8

Malaysia 23.9 25.6 3.2 - 1.7 54.4
Pakistan 17.0 19.0 2.7 0.4 5.6 44.8

Singapore 34.1 4.8 - - - 38.9

TOTAL World 3636.6 2331.9 2578.4 598.8 595.4 9741.1

Table 1.3.2: Primary energy consumption by fuel, 2003

1.3.3 Energy distribution between developed and developing countries

Although 80 percent of the world’s population lies in the developing countries (a fourfold population
increase in the past 25 years), their energy consumption amounts to only 40 percent of the world’s total
energy consumption. The high standards of living in the developed countries are attributable to high-
energy consumption levels. Also, the rapid population growth in the developing countries has kept the
per capita energy consumption low compared with that of highly industrialized developed countries.

The world average energy consumption per person is equivalent to 2.2 tonnes of coal. In industrialized
countries, people use four to five times more than the world average and nine times more than the
average for the developing countries. An American uses 32 times more commercial energy than an
Indian.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

Fig. 1.3.3 Energy distribution between developed and developing countries

1.3.4 Indian Energy Scenario

• Explain in brief about various resources available for energy generation and their
contribution in Electricity generation in Indian context. (7M S-18)

Coal dominates the energy mix in India, contributing to 55% of the total primary energy production.
Over the years, there has been a marked increase in the share of natural gas in primary energy production
from 10% - 13% since the year 1994 to 1999. There has been a decline in the share of oil in primary
energy production from 20% - 17% during the same period.

Energy Supply

Different energy resources are utilized for the purpose of energy supply. These resources are:
Coal
India has huge coal reserves, at least 84,396 million tonnes of proven recoverable reserves (at the end
of 2003). This amount to almost 8.6% of the world reserves and it may last for about 230 years at the
current Reserve to Production (R/P) ratio. In contrast, the world’s proven coal reserves are expected to
last only for 192 years at the current R/P ratio.
Reserves/Production (R/P) ratio: If the reserves remaining at the end of the year are divided by the
production in that year, the result is the length of time that the remaining reserves would last if
production were to continue at that level.
India is the fourth largest producer of coal and lignite in the world. Coal production is concentrated to
the states of Andhra Pradesh, Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra, Orissa, Jharkhand,
and West Bengal.
Oil
Oil accounts for about 36 % of India’s total energy consumption, making India counted among the top
ten oil guzzling nations in the world. The country’s annual crude oil production is peaked at about 32
million tonnes as against the current peak demand of about 110 million tonnes. In 2003-04, against total
export of $64 billion, oil imports accounted for $21 billion. India imports 70% of its crude needs mainly
from gulf nations. The majority of India’s roughly 5.4 billion barrels in oil reserves are located in the
Bombay High, upper Assam, Cambay, and Krishna-Godavari. In terms of sector wise petroleum
product consumption, transport accounts for 42% followed by domestic and industry with 24% and
24% respectively. India spent more than Rs.1, 10,000 crore on oil imports at the end of 2004.

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The Ever Raising Import Bill

Year Quantity Value (Rs. Crore)
1996-97 33.90 18,337
1997-98 34.49 15,872
1998-99 39.81 19,907
1999-00 57.80 40,028
2000-01 74.10 65,932
2001-02 84.90 8,116
2002-03 90 85,042
2003-04 95 93,159
*( Source: Ministry of Petroleum and Natural Gas )

Natural Gas
Natural gas accounts for about 8.9% of energy consumption within the country. The current demand
for natural gas is about 96 million cubic metres per day (mcmd) against the availability of 67 mcmd.
By 2007, the demand is expected to be around 200 mcmd. Natural gas reserves are estimated to be 660
billion cubic meters.

Electrical Energy
The all India installed capacity of electric power generating stations under utilities was 1,12,581 MW
as on 31st May 2004, consisting of 28,860 MW- hydro, 77,931 MW - thermal and 2,720 MW- nuclear
and 1,869 MW- wind ( *Source - Ministry of Power ).
The gross generation of power in the year 2002-2003 stood at 531 billion units (kWh).

Nuclear Power
Nuclear Power contributes to about 2.4 per cent of electricity generated in India. India has ten nuclear
power reactors at five nuclear power stations producing electricity. More nuclear reactors have also
been approved for construction

Nuclear Power in India % of Total installed

As of 2004 2720 MW 2.8
Planned till 2012 9380MW 8.1
Total 12100 MW 5.6

Hydro Power
India is endowed with a vast and viable hydro potential for power generation of which only 15% has
been harnessed so far. The share of hydropower in the country’s total generated units has steadily
decreased and it presently stands at 25% as on 31st May 2004. It is assessed that exploitable potential
at 60% load factor is 84,000 MW

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1.3.5 Final Energy Consumption

Final energy consumption is the actual energy demand at the user end. This is the difference between
primary energy consumption and the losses that takes place in transport, transmission & distribution
and refinement. The actual final energy consumption (past and projected) is given in Table 1.3.5

Source Units 1994-95 2001-02 2006-07 2011-12

Electricity Billion Units 289.36 480.08 712.67 1067.88

Coal Million Tonnes 76.67 109.01 134.99 173.47

Lignite Million Tonnes 4.85 11.69 16.02 19.70

Natural Gas Million Cubic Meters 9880 15730 18291 20853

Oil Products Million Tonnes 63.55 99.89 139.95 196.47

Source: Planning Commission BAU: Business As Usual

Table 1.3.5 Demands for commercial energy for final consumption (bau scenario)

1.3.6 Sector wise Energy Consumption in India

The major commercial energy consuming sectors in the country are classified as shown in the Figure
1.6. As seen from the figure, industry remains the biggest consumer of commercial energy and its share
in the overall consumption is 49%. (Reference year: 1999/2000)

Fig. 1.3.6 Sector wise energy consumption (1999-2000)

1.3.7 Energy Needs of Growing Economy

Economic growth is desirable for developing countries, and energy is essential for economic growth.
However, the relationship between economic growth and increased energy demand is not always a
straightforward linear one. Example, under present conditions, 6% increase in India’s Gross Domestic
Product (GDP) would impose an increased demand of 9 % on its energy sector.
In this context, the ratio of energy demand to GDP is a useful indicator. A high ratio reflects energy
dependence and a strong influence of energy on GDP growth. The developed countries, by focusing on
energy efficiency and lower energy-intensive routes, maintain their energy to GDP ratios at values of
less than 1. The ratios for developing countries are much higher.
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India’s energy needs

As seen from the Figure 1.3.7, 18.0% of the total five-year plan outlay is spent on the energy sector.
Plan wise outlay

PLANWISE OUTLAY

Fig 1.3.7: Expenditure towards energy sector

1.3.8 Per Capita Energy Consumption

The per capita energy consumption is too low for India as compared to developed countries. It is just
4% of USA and 20% of the world average. The per capita consumption is likely to grow in India with
growth in economy thus increasing the energy demand.

Fig.1.3.8 Per capita energy consumption

1.3.9 Energy Intensity

Energy intensity is energy consumption per unit of GDP. Energy intensity indicates the development
stage of the country. India’s energy intensity is 3.7 times of Japan, 1.55 times of USA, 1.47 times of
Asia and 1.5 times of World average.
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1.4 Long Term Energy Scenario For India

• What do you think of strategies required for long term management of energy in India?
(7M S-16)

The long term scenario of the energy resources in India has been discussed in the following points.
Coal
Coal is the predominant energy source for power production in India, generating approximately 70% of
total domestic electricity. Energy demand in India is expected to increase over the next 10-15 years;
although new oil and gas plants are planned, coal is expected to remain the dominant fuel for power
generation. Despite significant increase in total installed capacity during the last decade, the gap
between electricity supply and demand also continues to increase. The resulting shortfall has had a
negative impact on industrial output and economic growth. However, to meet expected future demand,
indigenous coal production will have to be greatly expanded. Production currently stands at around 290
Million tonnes per year, but coal demand is expected to more than double by 2010. Indian coal is
typically of poor quality and as such requires being improvement of the quality. Coal imports will also
need to increase dramatically to satisfy industrial and power generation requirements.
Oil
India’s demand for petroleum products is likely to rise from 97.7 million tonnes in 2001-02 to around
139.95 million tonnes in 2006-07, according to projections of the Tenth Five-Year Plan. The plan
document puts compound annual growth rate (CAGR) at 3.6 % during the plan period. India’s self-
sufficiency in oil has consistently declined from 60% in the 50s to the current value of 30%. Same is
expected to go down to 8% by 2020. As shown in Fig.1.4.1, around 92% of India’s total oil demand by
2020 has to be met by imports.
5

4
92%
3
Mbd
2 85%

0 57%

1997 2010 2020

Net imports Do mestic production

Fig.1.4.1 India’s oil balance

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Fig.1.4.2 Proven oil reserve/consumption (in million tones)

India Vs world (end of 2002)

Natural Gas
India’s natural gas production is likely to rise from 86.56 million cmpd to 103.08 million cmpd in from
2002-03 to 2006-07. It is mainly based on the strength of a more than doubling of production by private
operators to 38.25 mm cmpd.
Electricity
India currently has a peak demand shortage of around 14% and an energy deficit of 8.4%. Keeping this
in view and to maintain a GDP (gross domestic product) growth of 8% to 10%, the Government of India
has very prudently set a target of 215,804 MW power generation capacity by March 2012 from the level
of 100,010 MW as on March 2001 , that is a capacity addition of 115,794 MW in the next 11 years
(Table 1.4).

Thermal Gas / LNG / Nuclear Hydro Total

(Coal) (MW) Diesel (MW) (MW) (MW) ( MW )

Installed capacity as on Gas: 10,153

March 2001 61,157 Diesel: 864 2720 25,116 100,010

Additional capacity (2001-2012) 53,333 20,408 9380 32,673 115,794

Total capacity as on 114,490 31,425 12,100 57,789 215.804

March 2012 (53.0%) (14.6%) (5.6%) (2.6.8%)

Table 1.4: India’s perspective plan for power for zero deficit power by 2011/12
(Source Tenth And Eleventh Five-Year Plan Projections)
In the area of nuclear power the objective is to achieve 20,000 MW of nuclear generation capacity by
the year 2020.

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1.5 Energy Pricing in India

Price of energy does not reflect true cost to society. The basic assumption underlying efficiency of
market place does not hold in our economy, since energy prices are undervalued and energy wastages
are not taken seriously. Pricing practices in India like many other developing countries are influenced
by political, social and economic compulsions at the state and central level. More often than not, this
has been the foundation for energy sector policies in India. The Indian energy sector offers many
examples of cross subsidies e.g., diesel, LPG and kerosene being subsidized by petrol, petroleum
products for industrial usage and industrial, and commercial consumers of electricity subsidizing the
agricultural and domestic consumers.
Coal
Grade wise basic price of coal at the pithead excluding statutory levies for run-of-mine (ROM) coal are
fixed by Coal India Ltd from time to time. The pithead price of coal in India compares favorably with
price of imported coal. In spite of this, industries still import coal due its higher calorific value and low
ash content.
Oil
As part of the energy sector reforms, the government has attempted to bring prices for many of the
petroleum products (naphtha, furnace oil, LSHS, LDO and bitumen) in line with international prices.
The most important achievement has been the linking of diesel prices to international prices and a
reduction in subsidy. However, LPG and kerosene, consumed mainly by domestic sectors, continue to
be heavily subsidized. Subsidies and cross-subsidies have resulted in serious distortions in prices, as
they do not reflect economic costs in many cases.
Natural Gas
The government has been the sole authority for fixing the price of natural gas in the country. It has also
been taking decisions on the allocation of gas to various competing consumers. The gas price varies
from Rs 5 to Rs.15 per cubic meter.
Electricity
Electricity tariffs in India are structured in a relatively simple manner. While high tension consumers
are charged based on both demand (kVA) and energy (kWh), the low-tension (LT) consumer pays only
for the energy consumed (kWh) as per tariff system in most of the electricity boards. The price per kWh
varies significantly across states as well as customer segments within a state. Tariffs in India have been
modified to consider the time of usage and voltage level of supply. In addition to the base tariffs, some
State Electricity Boards have additional recovery from customers in form of fuel surcharges, electricity
duties and taxes. Example, for an industrial consumer the demand charges may vary from Rs. 150-300
per kVA, whereas the energy charges may vary anywhere between Rs. 2-5 per kWh. As for the tariff
adjustment mechanism, even when some states have regulatory commissions for tariff review, the
decisions to effect changes are still political and there is no automatic adjustment mechanism, which
can ensure recovery of costs for the electricity boards.

1.6 Energy and Environment

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1.6.1 Air Pollution

The usage of energy resources in industry leads to environmental damages by polluting the atmosphere.
Few of examples of air pollution are sulphur dioxide (SO), nitrous oxide (NOX) and carbon monoxide
(CO) emissions from boilers and furnaces, chlorofluorocarbons (CFC) emissions from refrigerants use,
etc. In chemical and fertilizer 2 industries, toxic gases are released. Cement plants and power plants
spew out particulate matter. Typical inputs, outputs, and emissions for a typical industrial process are
shown in Fig.1.6.1.
13%
CO 2
10%
Hy dro carbons
47%
S0 2
15%
N0 X

Partic ulates
15%

Fig. 1.12 Composition of major air pollutants

13%
CO 2
10%
Hy dro carbons
47%
S0 2
15%
N0 X

Partic ulates
15%

Fig. 1.13 Major pollutants in air-sector wise

1.6.2 Global Warming and Climate Change

• Explain in detail about Ozone Layer Depletion process and its various effects. (7M W-18)
What is the Ozone Layer?
The ozone layer is the layer present in the Stratosphere. It absorbs the harmful ultraviolet
rays that come from the sun. Moreover, it causes harmful radiation that has a high
concentration of ozone (O3) which is harmful to living beings on the earth.

The ozone layer is basically present in the lower stratosphere that is near about 20 to 35
kilometers above the earth. Moreover, the thickness of the ozone layer may differ depending
upon the seasonal and geographical changes.

The ozone layer is important for the earth because it protects the earth from the harmful
ultraviolet radiation. This radiation comes from the sun and is harmful to the earth’s surface

The flora and the fauna would not be able to survive if the earth will be directly affected by
the harmful ultraviolet rays. Moreover, humans and animals on earth will face a lot of
problems because of excess heating.
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Ozone Layer Depletion

According to the studies done by the scientists the cause of the ozone layer depletion is
Human activity. All the activities are done by human beings. Through which the chemicals
are made that contain chlorine or bromine. These are basically called ODS that stands for
Ozone-Depleting Substance.

The ozone layer depletion was observed by the researchers in the early 1970s. Furthermore,
the ozone-depleting substances are said to be Eco-friendly and they are very popular for the
last some decades and are still in use.

These ozone depletion substances float and then reach the stratosphere. Therefore, the
formation of chlorine and bromine takes place and these chemicals cause the depletion of
the ozone layer at a very high speed.

They are capable of breaking down the molecules of the ozone layer. One chlorine molecule
has a capacity to breakdown thousands of molecules present in the ozone layer, therefore,
it results in the depletion of the ozone layer.

• What are the implications of Global warming? (6M S-16,W-16)

• Discuss in brief about global environmental concerns and their remedies. (7M S-17)
• Discuss the effects of climate change. (6M W-17)
• Explain in detail the following global environmental issues.
Global warming
Loss of biodiversity (7M W-17)
• What do you understand by Greenhouse effect? Explain.(7M S-18)

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

Human activities, particularly the combustion of fossil fuels, have made the blanket of
green- house gases (water vapor, carbon dioxide, methane, ozone etc.) around the earth
thicker. The resulting increase in global temperature is altering the complex web of systems
that allow life to thrive on earth such as rainfall, wind patterns, ocean currents and
distribution of plant and animal species.

Greenhouse Effect and the Carbon Cycle

Life on earth is made possible by energy from the sun, which arrives mainly in the form of
visible light. About 30 percent of the sunlight is scattered back into space by outer atmosphere
and the balance 70 percent reaches the earth's surface, which reflects it in form of infrared
radiation. The escape of slow moving infrared radiation is delayed by the green house gases.
A thicker blanket of greenhouse gases traps more infrared radiation and increase the earth's
temperature (Refer Figure 1.6.2).

Fig. 1.6.2.The greenhouse effect

Greenhouse gases makeup only 1 percent of the atmosphere, but they act as a blanket
around the earth, or like a glass roof of a greenhouse and keep the earth 30 degrees warmer
than it would be otherwise - without greenhouse gases, earth would be too cold to live.
Human activities that are responsible for making the greenhouse layer thicker are emissions
of carbon dioxide from the combustion of coal, oil and natural gas; by additional methane
and nitrous oxide from farming activities and changes in land use; and by several man made
gases that have a long life in the atmosphere.
The increase in greenhouse gases is happening at an alarming rate. If greenhouse gases
emissions continue to grow at current rates, it is almost certain that the atmospheric levels
of carbon dioxide will increase twice or thrice from pre-industrial levels during the 21st
century.
Even a small increase in earth's temperature will be accompanied by changes in climate-
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

such as cloud cover, precipitation, wind patterns and duration of seasons. In an already
highly crowded and stressed earth, millions of people depend on weather patterns, such as
monsoon rains, to continue as they have in the past. Even minimum changes will be
disruptive and difficult.
Carbon dioxide is responsible for 60 percent of the "enhanced greenhouse effect". Humans
are burning coal, oil and natural gas at a rate that is much faster than the rate at which these
fossil fuels were created. This is releasing the carbon stored in the fuels into the atmosphere
and upsetting the carbon cycle (a precise balanced system by which carbon is exchanged
between the air, the oceans and land vegetation taking place over millions of years).
Currently, carbon dioxide levels in the atmospheric are rising by over 10 percent every 20
years.
Global warming
It is a phenomenon of climate change characterized by a general increase in average
temperatures of the Earth, which modifies the weather balances and ecosystems for a long
time. It is directly linked to the increase of greenhouse gases in our atmosphere, worsening
the greenhouse effect.

Current Evidence of Climatic Change

Cyclones, storm, hurricanes are occurring more frequently and floods and draughts are more intense
than before. This increase in extreme weather events cannot be explained away as random events.
This trend toward more powerful storms and hotter, longer dry periods is predicted by computer models.
Warmer temperatures mean greater evaporation, and a warmer atmosphere is able to hold more moisture
and hence there is more water aloft that can fall as precipitation. Similarly, dry regions are prone to lose
still more moisture if the weather is hotter and hence this leads to more severe droughts and
desertification.
Future Effects
Even the minimum predicted shifts in climate for the 21st century are likely to be significant and
disruptive. Predictions of future climatic changes are wide-ranging. The global temperature may climb
from 1.4 to 5.8 degrees C; the sea level may rise from 9 to 88 cm. Thus, increases in sea level this
century are expected to range from significant to catastrophic. This uncertainty reflects the complexity,
interrelatedness, and sensitivity of the natural systems that make up the climate.
Severe Storms and Flooding
The minimum warming forecast for the next 100 years is more than twice the 0.6 degree C increase that
has occurred since 1900 and that earlier increase is already having marked consequences. Extreme
weather events, as predicted by computer models, are striking more often and can be expected to
intensify and become still more frequent. A future of more severe storms and floods along the world's
increasingly crowded coastlines is likely.
Food Shortages
Although regional and local effects may differ widely, a general reduction is expected in potential crop
yields in most tropical and sub-tropical regions. Mid-continental areas such as the United States' "grain
belt" and vast areas of Asia are likely to become dry. Sub-Saharan Africa where dry-land agriculture
relies solely on rain, the yields would decrease dramatically even with minimum increase in
temperature. Such changes could cause disruptions in food supply in a world is already afflicted with
food shortages and famines.
Dwindling Freshwater supply
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

Salt-water intrusion from rising sea levels will reduce the quality and quantity of freshwater supplies.
This is a major concern, since billions of people on earth already lack access to fresh- water. Higher
ocean levels already are contaminating underground water sources in many parts of the world.
Loss of Biodiversity
Most of the world's endangered species (some 25 per cent of mammals and 12 per cent of birds) may
become extinct over the next few decades as warmer conditions alter the forests, wetland and rangelands
they depend on, and human development blocks them from migrating else- where

• The increase of temperatures and the climate upheavals disturb the ecosystems, modify the
conditions and cycles of plant reproduction.

• The scarcity of resources and climate change are changing life habits and migratory cycles of
animals. We are already witnessing the disappearance of many species - including endemic
species - or, conversely, the intrusion of spreading species that threaten crops and other
animals.
• According to the Intergovernmental Panel on Climate Change (IPCC), a 1.5°C (34.7°F) average
rise might put 20-30% of species at risk of extinction. If the planet warms by more than 2°C,
most ecosystems will struggle.
Increased Diseases
Higher temperatures are expected to expand the range of some dangerous "vector-borne" dis-
eases, such as malaria, which already kills 1 million people annually, most of them children.
A World Under Stress
• Ongoing environmentally damaging activities such as overgrazing, deforestation, and denuded
agricultural soils means that nature will be more vulnerable than previously to changes in cli-
mate.
• Similarly, the world's vast human population, much of it poor, is vulnerable to climate stress.
Millions live in dangerous places such as floodplains or in slums around the big cities of the
developing world. Often there is nowhere else for population to move. In the distant past, man
and his ancestors migrated in response to changes in habitat. There will be much less room for
migration in future.
• Global warming almost certainly will be unfair. The industrialized countries of North America
and Western Europe, and other countries such as Japan, are responsible for the vast

• Explain in brief about carbon Trading and Carbon foot prints. (7M S-17, 18)

Carbon Trading

The dramatic imagery of global warming frightens people. Melting glaciers, fre-ak storms and stranded
polar bears -- the mascots of climate change -- show how quickly and drastically greenhouse gas
emissions (GHG) are changing our planet. Such graphic examples, combined with the rising price of
energy, drive people to want to reduce consumption and lower their personal shares of global emissions.
But behind the emotional front of climate change lies a developing framework of economic solutions
to the problem. Two major market-based options exist, and politicians around the world have largely
settled on carbon trading over its rival, carbon tax, as the chosen method to regulate GHG emissions.

Carbon trading, sometimes called emissions trading, is a market-based tool to limit GHG. The carbon
market trades emissions under cap-and-trade schemes or with credits that pay for or offset GHG
reductions.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

Cap-and-trade schemes are the most popular way to regulate carbon dioxide (CO2) and other emissions.
The scheme's governing body begins by setting a cap on allowable emissions. It then distributes or
auctions off emissions allowances that total the cap. Member firms that do not have enough allowances
to cover their emissions must either make reductions or buy another firm's spare credits. Members with
extra allowances can sell them or bank them for future use. Cap-and-trade schemes can be either
mandatory or voluntary.

A successful cap-and-trade scheme relies on a strict but feasible cap that decreases emissions over time.
If the cap is set too high, an excess of emissions will enter the atmosphere and the scheme will have no
effect on the environment. A high cap can also drive down the value of allowances, causing losses in
firms that have reduced their emissions and banked credits. If the cap is set too low, allowances are
scarce and overpriced. Some cap and trade schemes have safety valves to keep the value of allowances
within a certain range. If the price of allowances gets too high, the scheme's governing body will release
additional credits to stabilize the price. The price of allowances is usually a function of supply and
demand.

Credits are similar to carbon offsets except that they're often used in conjunction with cap-and-trade
schemes. Firms that wish to reduce below target may fund preapproved emissions reduction projects at
other sites or even in other countries.

The Kyoto Protocol, an international treaty on climate change that came into force in 2005, dominates
the mandatory carbon market. It serves as both a model and a warning for every emerging carbon
program.

In the early 1990s, nearly every member state of the United Nations resolved to confront global warming
and manage its consequences. Although the resulting United Nations Framework Convention on
Climate Change (UNFCCC) international treaty recognized a unified resolve to slow global warming,
it set only loose goals for lowering emissions. In 1997, the Kyoto amendment strengthened the
convention.

Carbon Footprints
A carbon footprint is the amount of greenhouse gases—primarily carbon dioxide—released into the
atmosphere by a particular human activity. A carbon footprint can be a broad meaasure or be applied to
the actions of an individual, a family, an event, an organization, or even an entire nation. It is usually
measured as tons of CO2 emitted per year, a number that can be supplemented by tons of CO2-
equivalent gases, including methane, nitrous oxide, and other greenhouse gases.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

How is a carbon footprint calculated?

When calculating a carbon footprint, a lot of factors are taken into consideration. For example, driving
to the grocery store burns a certain amount of fuel, and fossil fuels are the primary sources of
greenhouses gases. But that grocery store is powered by electricity, and its employees probably drove
to work, so the store has its own carbon footprint. In addition, the products that the store sells were all
shipped there, so that must also be factored into the total carbon footprint. Beyond that, the fruits,
vegetables, and meats that the store sells were all grown or raised on farms, a process that produces
methane, which has a greenhouse effect 25 times greater than CO2. All of those elements must be
combined to understand the full carbon footprint of a given activity.

How can I calculate my carbon footprint?

Although adding up one’s individual carbon footprint can be difficult, online calculators can do some
of the work for you, giving a rough estimate of your carbon footprint based on the size of your
household, the efficiency of your appliances, how much you drive or fly, what you eat, and how much
you recycle.

Fossil fuel use and electricity consumption play a major role in your carbon footprint.

This isn't perfect, but it is a good way to measure your activities so you can understand roughly how
much CO2 they generate and take steps to reduce your carbon footprint.

How can I reduce my carbon footprint?

Methods of reducing your carbon footprint include driving more-efficient vehicles (or making sure that
your current vehicles are properly maintained), taking public transportation, using energy-efficient
appliances, insulating your home to reduce heating and air conditioning costs, consuming food that
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

doesn't require as much transportation, and eating less meat, which has a higher carbon footprint than
fruits and vegetables. Individuals and companies can also offset some of their CO2 emissions by
purchasing carbon credits, the money from which can go into projects such as planting trees or investing
in renewable energy.

1.6.3 What is Energy Conservation

• Why energy conservation is important in the prevailing energy scenario? (6M S-16 W-
18)

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 is therefore, 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. Promotion of energy efficiency will contribute to energy conservation
and is therefore an integral part of energy conservation promotional policies.
Energy efficiency is often viewed as a resource option like coal, oil or natural gas. It provides additional
economic value by preserving the resource base and reducing pollution. Example, replacing traditional
light bulbs with Compact Fluorescent Lamps (CFLs) means you will use only 1/4th of the energy to
light a room. Pollution levels also get reduced by the same amount.
Nature sets some basic limits on how efficiently energy can be used, but in most cases our products and
manufacturing processes are still a long way from operating at this theoretical limit. Very simply, energy
efficiency means using less energy to perform the same function.
Energy Efficient Equipment uses less energy for same output and reduces CO2 emissions

Compact fluorescent Lamp 15 W Incandescent Lamp 60 W

CO2 Emission – 16 g/hr CO2 Emission – 65 g/hr
Fig Energy efficient equipments
Although, energy efficiency has been in practice ever since the first oil crisis in 1973, it has assumed
even more importance today because of being the most cost-effective and reliable means of mitigating
the global climatic change. Recognition of that potential has led to high expectations for the control of
future CO2 emissions through even more energy efficiency improvements than have occurred in the
past. The industrial sector accounts for some 41% of global primary energy demand and approximately
the same share of CO2 emissions.

• How do an industry, nation & globe would benefit from energy efficiency programs? (7M
W-16 S-19)

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

Fig .Energy efficiency benefits

Energy Conservation and its Importance

Coal and other fossil fuels 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.
Consumption of F ossil Fuels
25

20

15

10

0
100 0 0 100 0 2000 3000 400 0
B. C. AD
Ti me
Fig Consumption of fossil fuels

1.6.4 Energy Strategy for the Future

• Explain the concept of Energy Management with example. (7M S-17, 18)

The energy strategy for the future could be classified into immediate, medium-term and long-term
strategy. The various components of these strategies are listed below: Immediate-term strategy
• Rationalizing the tariff structure of various energy products.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

• Optimum utilization of existing assets

• Efficiency in production systems and reduction in distribution losses, including those in traditional
energy sources
• Promoting R&D, transfer and use of technologies and practices for environmentally sound energy
systems, including new and renewable energy sources
Medium-term strategy
• Demand management through greater conservation of energy, optimum fuel mix, structural changes
in the economy, an appropriate model mix in the transport sector, i.e. greater dependence on rail
than on road for the movement of goods and passengers and a shift away from private modes to
public modes for passenger transport; changes in design of different products to reduce the material
intensity of those products, recycling, etc.
• There is a need to shift to less energy-intensive modes of transport. This would include measures
to improve the transport infrastructure viz. roads, better design of vehicles, use of compressed
natural gas (CNG) and synthetic fuel, etc. Similarly, better urban planning would also reduce the
demand for energy use in the transport sector.
• There is a need to move away from non-renewable to renewable energy sources viz. solar, wind,
biomass energy, etc.
Long-term strategy
• Efficient generation of energy resources
✓ Efficient production of coal, oil and natural gas
✓ Reduction of natural gas flaring
✓ Improving energy infrastructure
✓ Building new refineries
✓ Creation of urban gas transmission and distribution network
✓ Maximizing efficiency of rail transport of coal production
✓ Building new coal and gas fired power stations
• Enhancing energy efficiency
✓ Improving energy efficiency in accordance with national, socio-economic, and
environmental priorities.
✓ Promoting of energy efficiency and emission standards
✓ Labelling programs for products and adoption of energy efficient technologies in large
industries
• Deregulation and privatization of energy sector
✓ Reducing cross subsidies on oil products and electricity tariffs
✓ Decontrolling coal prices and making natural gas prices competitive
✓ Privatization of oil, coal and power sectors for improved efficiency
• Investment legislation to attract foreign investments
✓ Streamlining approval process for attracting private sector participation in power
generation, transmission and distribution

• State the measures for energy conservation in domestic and commercial sectors. (6M W-
17)
Some of the practical methods and technologies for energy conservation and energy
management are:
• Using Smart Grids: These grids improve efficiency by using technology to optimize the
production and distribution. Through a combination of distributed resources, interactive
technologies, renewable energy, two-way communications, and dynamic utilization, they
provide businesses and consumers with information that allows them to alter their
consumption based on supply, demand, and pricing. That improves the reliability and
flexibility of energy use.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

• Installing CFL lights: trying to replace the incandescent bulbs with CFL lights. CFL bulbs
cost more upfront but last 12 times longer than the regular bulbs and will not only save energy
but over time it is cost effective.
• Using maximum daylight: turning off the lights during the day and using daylight as much as
possible will reduce the burden on the local power grid and will save a good amount of
money in the long run.
• Getting the energy audit done: It is mostly done by a panel of trained professionals for
analyzing the energy use and flow for energy in a building, process or systems to reduce the
amount of energy input into the system without affecting the output. The recent development
of smartphone apps will help the consumers to get their energy audit done at home.
• Building technologies and smart meters allow the energy users, both business and
residential to see graphically the impact their energy use can have in their workplace.
Advance real time metering allows people to save and conserve energy by their actions.
• Energy Tax: Some countries employ energy or carbon taxes to motivate the energy users to
reduce their consumption. Carbon taxes allows consumptions to alter. Nuclear and other
alternative methods of energy can help reduce environmental impacts. Taxes on all energy
consumption helps reduce energy use across the board, while reducing the environmental
consequences arising from energy production.

• Why it is important to have Energy Management in Industrial sector? (6M W-18)

Conservation of energy in different industrial equipment/applications

• Boilers are used in various industrial units to convey heat for different process applications.
Though boilers can be categorized into different types and have different efficiency levels, the
motive of the industry should be to generate the required quantity and quality of steam at
minimum cost. An optimum level of excess air level should be maintained. The method of
return steam condensate to the boiler helps reduce fuel consumption, along with this method
various other methods could be applied to minimize the loss of energy.
• Steam plays an important part in the chemical plants for process heating and turbine drives. The
rising cost of fuel has made it necessary to adopt measures to reduce energy losses in the steam
distribution network. The insulation should be kept in good condition, all valves and other parts
of the system should be constantly checked. Condensation recovery in the steam system is very
important. When steam condenses, it transfers about 75% of the heat content to the process and
the remaining is withheld in the condensed water. It is very important to install a good
condensate recovery system to collect the condensate from the process.
• Compressed air is used in almost all types of industries and accounts for a major share of the
electricity used in some of the plants. It is utilized for a variety of end-uses such as pneumatic
tools and equipment, instrumentation, conveying, etc. and is preferred in industries because it
is more convenient and safe. The compressor is the main component of this system and its
selection must be done carefully. Leakage points have to be identified and sealed, and proper
pressure has to be maintained.
• Refrigeration is done by various methods such as the vapour compression system, absorption
system, and the steam jet system. An air conditioning and a refrigeration plant are efficient
when all the system components, i.e. the compressor, the condenser, the evaporator, the cooling
tower, etc., are working in matching condition. Other than the servicing of the components and
their maintenance, care should be taken to ensure that the outdoor air is kept at a minimum.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

• Most of the industrial processes in and out of plants involve transportation of fluids and the
pump is the mechanical equipment that is used to facilitate this movement. It can be operated
either through a diesel engine, an electric motor, or a gas or steam turbine. All these consume
energy either in the form of electric power or petroleum products like diesel, oil, or gas. The
pumps have to be well maintained and under constant supervision.
• Of the total electricity consumed in the industrial sector, electric motors account for
approximately 70%. These motors are classified under DC (direct current) and AC (alternative
current). Electricity consumption in these motors can be reduced if the cooling is improved
along with the controls, if they are operated at the rated voltage, and are regularly maintained.
The new energy-efficient motors have better performance as they have incorporated design
improvement to reduce energy loss.
What the industries should do

• They must try to improve the existing systems of their equipment and units and increase
efficiency. This can be done through energy audits.
• Attention should move from existing sources of energy to the new renewable sources.
For instance, the sugar industry can start using the bagasse to generate power–a large
number of sugar mills in the country are already using power generated from this
residue.
• Housekeeping methods should be improved by maintaining the systems as per the laid
down norms
• New technologies with state-of-the-art machines, new processes, etc. which will help
in saving energy have to be introduced. Good examples of this are the dry process as
against the wet process in the cement industry. Another is the electric arc furnace versus
the conventional method of steel production.

• List all the possible energy conservation measures in lighting system. (7M W-16 S-19)
• What are the energy conservation opportunities in Lighting and HVAC systems in
buildings? (7M S-17, 19 W-18)

1.6.5 Energy Conservation in Lighting Systems

• A good supply of light does not necessarily mean the consumption of a great deal of energy. If
the right lamp is selected for the right type of function, it is possible to save energy.
• There are four basic types of lighting: incandescent, fluorescent, high intensity discharge, and
low pressure sodium.
• Incandescent lamps are the least expensive to buy but are the most expensive to operate. They
have the shortest lives and are inefficient compared with other lighting types.
• Fluorescent lighting is used mainly indoors and is about three to four times as efficient as
incandescent lighting. They last about ten times longer than the incandescent types.
• Compact fluorescent lamps or CFL are the most significant lighting devices developed for
homes in recent years. They combine the efficiency of fluorescent lighting with the convenience
and popularity of the incandescent fixtures. They can replace incandescent ones that are roughly
three to four times their wattage, saving up to 70% of the initial lighting energy. Although these
bulbs cost ten to twenty times more than the ordinary bulbs they last ten to fifteen times as
much. In fact all this makes it the most energy efficient option for the purpose of lighting.
• High intensity discharge lamps or the HID provide the longest service life and the highest
quality of any lighting type. They are commonly used for outdoor lighting and in large indoor
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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

areas. These lamps and fixtures can save 70%–90% of lighting energy when they replace
incandescent ones. The three most common types of HID lamps are the mercury vapour, metal
halide, and high-pressure sodium lamps.
• Low pressure sodium lamps are the most efficient artificial lighting, having the longest service
life, and maintain their light output better than any other lamp type. They work in some ways
like fluorescent lights and is used where colour is not so important. Its typical applications
include highways and security lighting.

1.6.6 Heating Ventilation & Air Conditioning (HVAC) Systems

HVAC systems are milestones of building mechanical systems that provide thermal
comfort for occupants accompanied with indoor air quality.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

✓ The building automation device (computer or wall-mounted gadgets usually) can be used to
determine whether to heat or cool the space, and to what temperature
✓ The system then either heats or cools the coils inside
✓ When air brought in from the outside is pushed through these coils, it is either heated or
cooled before being pushed into the living space
✓ At the same time, air will be displaced from the room back into the system.

Energy conservation opportunities in HVAC systems in buildings

 By upgrading plant with energy efficient technology while improving the safety of the
building.
Cooling load
 The first step in energy savings on HVAC systems is to reduce the cooling load. The amount
of electricity air-conditioning systems use also depends on the cooling load – the amount of
heat the system has to remove. There are several steps to reducing cooling load.
Insulate the cooled space
This involves implementing various measures such as ceiling insulation, window
glazing, blinds, awnings and door sweeps. All will contribute to creating a
thermally efficient shell that can dramatically reduce the cooling load on HVAC
systems while ensuring that comfortable internal temperatures are maintained.
Reduce warm air filtration into the cooled space by keeping windows and doors
closed when HVAC systems are in use.
Minimize the use of appliances and lighting
 All lights emit heat, so lights and equipment that are not required at any particular time should
be switched off to help to reduce the cooling load.
 Replacing conventional boilers with condensing boilers reduces the heat load, and replacing
standard motors with high-efficiency motors results in lower losses and less emitted heat.
 Investing in variable speed drives (VSDs) for motors to match speed with output demand
results in lower energy usage and heat load.
Ensure that controls are in place and HVAC operation reflects demand
 HVAC loads vary at different times and in different parts of a building throughout the day.
 Well set time and occupancy controls should ensure that systems only operate when
and where required during core business hours.
 It is also crucial to check settings regularly – many systems are set incorrectly because of
forgotten short-term adjustments.

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ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

 Installing a building energy management system (BMS or BEMS) which offers close control
and monitoring of building services performance, including HVAC, allows automatic control
of the HVAC system.
 BEMS can reduce energy costs by allowing system performance to be monitored and settings
to be changed.
Variable speed drives on HVAC fans and pumps
 This allows motor-driven loads such as fans and pumps to operate in response to varying load
requirements instead of simply operating in “on/off” mode.

• Differentiate between Energy Conservation and Energy management. Give suitable

examples. (7M S-18)
Energy conservation: is the term used for reducing the consumption through using less
energy service. Energy conservation is not about making limited resources last longer, but it is
a process of doing nothing more than delaying a crisis until we finally run out of all our energy
resources. Conservation is the process of reducing demand on a limited supply (for example
natural gas) and ensuring that the demand is met by alternative means of supply. Most of the
times the best way to do this is to replace the existing energy used with an alternate one. Energy
Conservation is all about using energy only when it is required and using it as much as needed
for the job and not wasting any amount of it. It requires a conscious effort from the user of
energy to make sure that there is no wastage on a regular basis.

Energy Management: is a term used for saving or reducing the use of energy in
businesses, public sector or government organizations and homes. It is the art of using optimum
energy to maximize profits and minimize costs thereby improving the economic
competitiveness. Energy management can also be defined as the science involving planning
and controlling the supply and consumption of energy to improve the productivity and comforts
of the public and to minimize the energy costs and pollution with conscious and effective use
of energy.

When it comes to saving the energy for the future, energy management refers to the process of
monitoring, controlling and conserving energy in a building or an organization. This involves:

• Metering energy consumption and collecting the data received.

• Finding ways to save energy and estimating how much energy is consumed and conserved. One
would typically analyze the meter data to find and quantify routine energy waste and investigate
the energy savings by replacing the equipment that was causing high energy consumption or
by upgrading the building insulation.
• Tracking the progress by analyzing the meter data to check the energy saving efforts.

Some of the practical methods and technologies for energy conservation and energy
management are:

• Using Smart Grids: these grids improve efficiency by using technology to optimize the
production and distribution. Through a combination of distributed resources, interactive
technologies, renewable energy, two-way communications, and dynamic utilization, they
provide businesses and consumers with information that allows them to alter their consumption
based on supply, demand, and pricing. That improves the reliability and flexibility of energy
use.
28
ENERGY MANAGEMENT & AUDIT_UNIT 1_ BASICS OF ENERGY MANAGEMENT AND CONSERVATION_BY TRIVELLI NAIDU

• Installing CFL lights: trying to replace the incandescent bulbs with CFL lights. CFL bulbs
cost more upfront but last 12 times longer than the regular bulbs and will not only save energy
but over time it is cost effective.
• Using maximum daylight: turning off the lights during the day and using daylight as much as
possible will reduce the burden on the local power grid and will save a good amount of money
in the long run.
• Getting the energy audit done: one of the primary ways to reduce energy usage is to conduct
an energy audit. It is mostly done by a panel of trained professionals for analyzing the energy
use and flow for energy in a building, process or systems to reduce the amount of energy input
into the system without affecting the output. The recent development of smartphone apps will
help the consumers to get their energy audit done at home.
• Building technologies and smart meters allow the energy users, both business and residential
to see graphically the impact their energy use can have in their workplace. Advance real time
metering allows people to save and conserve energy by their actions.
• Energy Tax: Some countries employ energy or carbon taxes to motivate the energy users to
reduce their consumption. Carbon taxes allows consumptions to alter. Nuclear and other
alternative methods of energy can help reduce environmental impacts. Taxes on all energy
consumption helps reduce energy use across the board, while reducing the environmental
consequences arising from energy production.
• Switching off the electric appliances when not in use.
• Drive less, walk more and carpooling: is yet another way of conserving energy. This will not
only reduce the carbon footprint but will also keep us healthy.

Emerging Technologies in Energy Management:

• Smart and Wireless systems: Networking and communications technologies help reduce
waste, improve efficiency and enable changes in behaviour. The simplest example is lighting
fixtures with integrated occupancy and/or daylight sensors. More advanced examples are
lighting ballasts that can connect and talk to each other and to a central control system through
a wireless mesh network. This type of system provides true plug-and-play capabilities, where
luminaires can simply be installed or relocated and they will determine for themselves where
they are and how they should function in relation to that location.
• Net zero energy buildings: The movement now is beyond simply reducing energy use in
buildings to having buildings that produce energy and contribute it back to the grid. Renewable
energy sources and on-site generation will contribute to a more distributed energy model, where
individual buildings and sites are more active participants in the energy system. The
development of energy storage capabilities will enable this type of interaction so that individual
customers can decide when to buy from the grid, when to store energy and when to supply it
back to the grid based not just on the load but also on price, the availability of renewable sources
or even the carbon content of grid energy.
• Focusing more on renewable energy: to deal with the environmental issues. Countries should
invest substantially in using renewable energy in their day to day life such as use of solar panels
to supply their daily energy requirements.
• Using autonomous vehicles technology will help reduce the traffic congestion and will
improve the fuel economy by 4-10 % by accelerating and decelerating more smoothly than a
human driver. As we know that smog in industrial areas is linked to the number of vehicles,
having autonomous cars will help reduce the air pollution. A shared autonomous vehicle system
also offers benefits in terms of emissions and energy.

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