Energy

Management
PE ZC352
Lecture - 1
BITS Pilani REGIS X
Pilani Campus Mechanical Engineering Department
 Energy Management

Energy Conservation
Energy Auditing
Energy Sources

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Energy Management

Energy Management It can be defined as the

management of energy in a judicious manner and
effectively utilizing energy to maximize profits and
acquire enhanced competitive positions in the
global market
Energy management is intensely coupled with
energy efficiency and increasing of which would
provide a cost effective pathway for reducing
greenhouse gas emissions.
In recent years, the magnitude of energy
consumption in all sectors seems to crest from the
normal demand, and that has to be carefully
addressed through implementing energy
conservative and energy management techniques.
Human Desire - what advances technology?
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Energy Management and Cost Reduction

• In any industry the three top operating

expenses are often found to be
– Energy (both electrical and thermal),
– Labour
– Materials.
interlinked
• If one were to relate to the manageability of
the cost or potential cost savings in each of
the above components, energy would
invariably emerge as a top ranker, and thus
energy management function constitutes a
strategic area for cost reduction.

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Need for Energy Management

Energy Management in industries/companies is required

because:
– Energy costs affect the
– profitability of the company (the top 2% company).
Investing wisely (Dehaviland)
– competitiveness in the world market
– National energy supply/demand balance
– National trade and financial balance
– Local and global environments
– Occupational safety and health (the story of thomas
Midgley)
– Loss prevention and waste disposal reduction
– Productivity
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Energy Conservation Schemes
Conservation of energy simply means
cutting out waste by eliminating
unnecessary usage of energy – whether
it be oil, gas, coal, or electricity
What lies behind a Conservation of
energy Campaign is to ensure the
minimum wastage by making the best
possible use of the energy consumed
It is generally considered that
investment for energy conservation be
judged exactly by the same criteria for
any other form of capital investment
(spending time for planning prototype vs
mass production - your ability to
foresee - Greenfield village)
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Household Electricity Prices

21 January 2023 ENERGY MANAGEMENT Source: https://clouglobal.com/ 7

Energy Conservation Schemes

Energy conservation measures may be

classified on an economic basis and fall
into the following three categories

SHORT TERM: Involve changes in

operating practices resulting in little or no
capital expenditure (analogous to patch
work)

MEDIUM TERM: Low-cost modification

and improvements to existing equipment.
Pay-back period often 2 years or under 1
year

LONG TERM: Modification involving high

capital costs. Implementation of new
techniques and technologies
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Short-term Energy Conservation Schemes

Furnace efficiencies: Emphasis on Minimum excess

combustion. Continuous monitoring of oxygen levels of
flue gases. Oil burners be cleaned and maintained
regularly. (Ashok Leyland’s initiated Consultancy)
Heat exchangers: Careful monitoring of performance
should be carried out to determine optimum cleaning
cycles.
Good housekeeping: Doors and windows be kept closed
during heating season and avoid excessive ventilation.
Use natural light whenever sufficiently available.
Encourage clothing appropriate to the temperature of the
working areas
Use of steam: Major steam leaks should be repaired as
soon as possible.(LBB - Boston Molasses Disaster)
Electrical power: conservation measures can reduce the
power consumption by 10-15%.

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 Medium-term energy conservation schemes

(a) Insulation: Improve insulation to prevent cold-air leaking into the building.
Improving insulation of the steam distribution system.
(b) Heating systems: Improving the time and temperature control of the
heating systems in buildings. (Thermostats)
(c) Replacing air compressors (look for key indicators)
(d) Instrumentation: To measure and control conservation parameters,
adequate instrumentation must be provided or operators will loose interest
in maintaining efficiencies.
(e) Process modifications: This scheme depends upon the industry
concerned. For e.g., Steam condensate, if uncontaminated, may be used
as boiler feed water.
(f) Burners: The control and amount of atomising steam is important and
often in furnaces and boilers the amount of atomising steam is far in
excess.
(g) Electrical power savings: Considerable savings may be made by
adjusting the electrical power factor correction.
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Long-term Energy Conservation Schemes

Heater modifications: The installation of

heating tubes and air preheaters to extract
more heat from furnace flue gases.

Improved insulation: Additional lagging of

heated storage tanks.

Heat recovery: Improved heat recovery in

the processing areas by additional heat
exchange schemes.

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Energy Policy - (planning)

It provides the energy manager with the authority to be involved in

business planning, new facility location and planning, the selection of
production equipment, purchase of measuring equipment, energy
reporting, and training — things that are sometimes difficult to do. FAST
Diagram(choosing the best out of spectrum of options, step by step to
come up with blueprint and signposts) Getting advice from authoritative
minds.

To be effective, the policy should be short—two pages at most and

should contain the following:
– Objectives
– Accountability
– Reporting
– Training

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Energy Policy

Objectives

– This can contain the standard statements about energy, but the most
important is that the organization will incorporate energy efficiency into
facilities and new equipment, with emphasis on life cycle cost analysis
rather than lowest initial cost

Accountability

– This should establish the organizational structure and the authority for
the energy manager, coordinators, and any committees or task groups

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Energy Policy

Reporting
– Without authority from top management, it is often difficult for the energy
manager to require others within the organization to comply with reporting
requirements necessary to properly manage energy (scrupulous)
– The policy is the place to establish this. It also provides a legitimate
reason for requesting funds for instrumentation to measure energy usage
(fact finding vs fault finding)

Training (<0.1%)
– If training requirements are established in the policy, it is again easier to
include this in budgets
– It should include training at all levels within the organization.

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Energy Auditing

An energy audit is an inspection,

survey and analysis of energy flows
for energy conservation in a building,
process or system to reduce the
amount of energy input into the system
without negatively affecting the
output(s).
In commercial and industrial real
estate, an energy audit is the first step
in identifying opportunities to reduce
energy expense and carbon footprints.

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Energy Auditing

As per the Energy Conservation Act, 2001,

Energy Audit is defined as: Eg(OPEC)

"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“.

"The judicious and effective use of energy

to maximize profits (minimize costs) and
enhance competitive positions” (Cape Hart,
Turner and Kennedy, Guide to Energy
Management Fairmont press inc. 1997)

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 Need for energy audit

The primary objective of Energy Audit is

to: determine ways to reduce energy
consumption per unit of product output
or to lower operating costs.

Energy Audit provides a "bench-mark“

(Reference point) for managing energy
in the organization and also provides the
basis for planning a more effective use
of energy throughout the organization.

Image Source: https://www.wikihow.com

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Energy Audit: Types and Methodologies

The type of Energy Audit to be performed depends on:

– Function and type of industry
Potential and magnitude of cost reduction desired
– Depth to which final audit is needed, and
– (Factors Driving)

Energy Audit can be classified into the following two types

– Preliminary Audit
– Detailed Audit

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Energy Audit: Types and Methodologies

Fires heaters audit

Boilers/steam systems audit
Electrical systems audit
Insulation audit
Cooling system audit
Evolving Specific Energy Consumption
Heat Recovery analysis/Hot steam analysis

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Preliminary Energy Audit Methodologies

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

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Detailed Energy Audit

Detailed energy project implementation plan for a facility

Accurate estimate of energy savings and cost
Inventory of energy using systems, assumptions of current
operating conditions and calculations of energy use.
Indicates how effectively each has been used as compared
to the previous method. (establishes comparison)

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Information to be collected

Technology, processes used and equipment details

Capacity utilization
Amount & type of input materials used
Water consumption
Fuel Consumption
Electrical energy consumption
Steam consumption
Other inputs such as compressed air, cooling water etc.
Quantity & type of wastes generated
Percentage rejection / reprocessing
Efficiencies / yield
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Identification of Energy
Conservation Opportunities
Fuel substitution
Power generation
Energy distribution
Energy usage by processes
Technical and Economic feasibility

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Phase1: Pre Audit Phase activities

A structured methodology to carry out an energy audit is

necessary for efficient working. An initial study of the site
should always be carried out, as the planning of the
procedures necessary for an audit is most important.
An initial site visit may take one day and gives the Energy
Auditor/Engineer an opportunity to meet the personnel
concerned, to familiarize him with the site and to assess the
procedures necessary to carry out the energy audit.

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Initial Site Visit and Preparation required
for detailed auditing
During the initial site visit the Energy Auditor/Engineer
should carry out the following actions:

Discuss with the site's senior management the aims of the energy
audit. (authentic vs formality)
Discuss economic guidelines associated with the
recommendations of the audit.
Analyze the major energy consumption data with the relevant
personnel.
Obtain site drawings where available - building layout, steam
distribution, compressed air distribution, electricity
distribution etc.
Tour the site accompanied by engineering/production

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Initial Site Visit and Preparation required
for detailed auditing
The main aims of this visit are:
To finalize Energy Audit team
To identify the main energy consuming areas/plant items to be
surveyed during the audit
To identify any existing instrumentation/ additional metering
required
To decide whether any meters will have to be installed prior to
the audit eg. kWh, steam, oil or gas meters
To identify the instrumentation required for carrying out the audit
To plan with time frame
To collect macro data on plant energy resources, major energy
consuming centres
To create awareness through meetings/ programme
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Phase II : Detailed Energy Audit Activities

Depending on the nature and complexity of the site, a

comprehensive audit can take from several weeks to several
months to complete.
The audit report will include a description of energy inputs and
product outputs by major department or by major processing
function, and will evaluate the efficiency of each step of the
manufacturing process.
The audit report should conclude with specific recommendations
for detailed engineering studies and feasibility analyses, which
must then be performed to justify the implementation of those
conservation measures that require investments. (TESLA)

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The Information to be collected during
the detailed audit
Energy consumption by type of energy, by department, by
major items of process equipment, by end-use.
Material balance data (raw materials, intermediate and final
products, recycled materials, use of scrap or waste
products, production of by-products for re-use in other
industries, etc.).
– Energy cost and tariff data.

– Process and material flow diagrams

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The Information to be collected during
the detailed audit
Generation and distribution of site services (e.g.
compressed air, steam).
Sources of energy supply (e.g. electricity from the grid or
self generation)
Potential for fuel substitution, process modifications, and
the use of co-generation systems (combined heat and
power generation)
Energy Management procedures and energy awareness
training programs within the establishment.

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Data collection hints!

• Measurement systems should be easy to use and provide

the information to the accuracy that is needed, not the
accuracy that is technically possible
• Measurement equipment can be inexpensive (flow rates
using a bucket and stopwatch)
• The quality of the data must be such that the correct
conclusions are drawn (what grade of product is on, is the
production normal etc)

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Data collection hints

• Define how frequent data collection should be to account

for process variations.
• Measurement exercises over abnormal workload periods
(such as startup and shutdowns).
• Design values can be taken where measurements are
difficult (cooling water through heat exchanger)

– Do Not Estimate When You Can Calculate

– Do Not Calculate When You Can Measure (If practicable)

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Phase III: Post Audit Activities

• Energy Audit Reporting Format

• The following two worksheets can be used as guidance for
energy audit assessment and reporting

summary of energy saving

recommendations
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Energy Audit Reporting Format

Types and
21 January 2023 Priorities of Energy Saving Measures
ENERGY MANAGEMENT 33
Conversion Units

1 BTU = 1055.06 Joules

1 Wh = 3600 J

1 kWh = 3600 kJ
1 kWh = 3600000 J
therm (symbol, thm) = 100,000 British thermal units

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Energy Index

• When a company is producing a specific product a useful

parameter to monitor and compare energy consumption is the
Energy Index.
DEFINITION:

• Can be calculated weekly, monthly or annually.

• Total Energy Index is sufficient for monitoring purposes but a
record of the individual energy indices should be maintained.
• In the event of an increase/decrease (due to a conservation
measure) in the Energy index the particular source can be
investigated immediately.
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Cost Index

• The cost index is a further parameter which can be used to

monitor and assess energy consumption by a company.
DEFINITION:

• An individual cost index can be determined for each energy form

and for the total energy consumption by the company.
Monthly/ Weekly comparison will indicate change in consumption
pattern which can be investigated and remedied.
• Energy and Cost Index: Trends and Fluctuations.

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Process Energy Audit

• A company produces 100 tonnes during a particular time

period. The details are given in the table below.

10^9 J 10^6 Wh Cost (Rs.)

Electricity 216 60 1500000

Power Generated 720 200 2766000

LP Steam 810 225 2047000

Gas 316 88 540000

2062 573 6853000

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Process Energy Audit

• A company produces 100 tonnes during a particular time

period. The details are given in the table below.
10^9 J 10^6 Wh Cost (Rs.)

Electricity 216 60 1500000

Power Generated 720 200 2766000

LP Steam 810 225 2047000

Gas 316 88 540000

2062 573 6853000

Energy Index = 573*10^6/100 Cost Index = 6853000/100

Energy Index = 5.73*10^6 Wh/tonne Cost Index = 68530 Rs./tonne

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General Auditing

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Representation of Energy Consumption

• Pie Charts
• Sankey Diagram
• Load Profile

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 Pie Chart

Source: https://powermin.gov.in/ BITS Pilani, Pilani Campus

Sankey Diagram

Sankey diagram represents all primary energy flows into the factory.

The widths of the bands are directly proportional to the energy

production, utilization and losses.
Sankey diagrams are quite difficult to construct as measurements must
be made for all energy flows and this will involve considerable metering
and instrumentation.
Its value is in highlighting losses which one never knew existed.

BITS Pilani, Pilani Campus

Sankey Diagram

A quad is a unit of energy equal to 1015 (a short-scale quadrillion) BTU, or 1.055 × 1018 joules

BITS Pilani, Pilani Campus

Load Profiles

Image source: https://commons.wikimedia.org/wiki/File:Hou710_ShapeRisk.svg

BITS Pilani, Pilani Campus

Thank You

Textbook
• Energy Management by W.R. Murphy and G. Mc Kay.

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