UNIT I

BASIC PRINCIPLES OF ENERGY AUDIT

INTRODUCTION:-
The manufacturing industry in India, accounts for over 50% of total commercial
energy used in the country. Across the world, industry consumes about 1/3 of all natural
energy sources (Murphy & McKay, Energy Management, Butterworth Heinemann,
London, 1982). The high levels of energy used in Indian Industry compared to similar
industries in advanced countries, the increasing problems of availability of energy sources
and their ever escalating costs, strongly point to the immediate need for effective control on
the use of energy.
It is believed and often proved by actual studies that a reduction in energy
consumption by as much as 10-30% is a realizable goal in a large number of industries, by
better and effective energy management at unit level. And these savings can generally be
achieved with little or no additional investment.
Any savings that can be achieved in energy costs, directly add to the profit figures.
While this is also true, in respect of other direct costs as well, i.e. labour and material costs,
it is much harder and more difficult to achieve reduction in their costs.
Another area by which profitability of an enterprise can be improved is by increasing
production and market share; but these obviously require additional investments on
expansion of manufacturing facilities and man-power and involve added management and
marketing effort; and a small portion of increased sales volume contributes to profits.
While the situation from industry to industry may vary, it may be pertinent to state
that energy cost savings to the extent of 15-20% is definitely feasible, at least in those
industries (besides commercial buildings) where serious study has not yet been attempted.
One can visualize the improvement in profitability besides improvement in the
competitiveness of Indian manufactured goods in world market, which reduction in energy
costs could result in, without any major investment.

ENERGY AUDIT:-
The main purpose energy audit is to increase energy efficiency and reduce energy
related costs. Energy audit is not an exact science. It involves collection of detailed data
and its analysis.
(or)

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 It is an official scientific study/ survey of energy consumption of a region/
organization/ process/ plant/ equipment aimed at the reduction of energy consumption and
energy costs, without affecting productivity and comforts and suggesting methods for
energy conservation and reduction in energy costs.
(or)
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).
(or)
As per the Energy Conservation Act, 2001, Energy Audit is defined as "the
verification, monitoring and analysis of use of energy including submission of technical
report containing recommendations for improving energy efficiency with cost benefit
analysis and an action plan to reduce energy consumption".
Energy audit is a fundamental part of an energy management program (EMP) in
controlling energy costs. It will identify areas of wasteful and inefficient use of energy.

DEFINITIONS AND CONCEPTS:-

The successful implementation of individual energy conservation programmed
depends on a proper organizational framework and baseline data for identifying and
evaluating energy conservation opportunities. The determination of the baseline data
requires a comprehensive and detailed survey of energy uses, material-energy balances, and
energy loss. This survey is generally referred to as the Energy Audit.
To save energy, it is necessary to know where, how and how much energy is being
consumed. The objective of energy audits is to characterize and quantify the use of energy
within the plant at various levels in departments, sections, major processes, and major
equipment. The plant energy study provides a comprehensive and detailed picture not only
of the type and quantity of energy being used but also how efficiently it is being utilized,
and where it is wasted or lost.
The energy audit process include description of energy inputs and product outputs
by major departments or by major processing functions, and will evaluate the energy;
efficiency of each step of the manufacturing process. Means of improving these will be
listed, and a preliminary assessment of the cost of these improvements will be made to
indicate the expected payback on any capital investment needed.
 The aims of energy audit are as follows:
1. To identify the main energy users and quantity their annual energy consumption.
2. To ascertain the optimized energy data
3. To determine the availability or energy/production data
4. To investigate the distribution systems for the site services and note any existing
metering
5. To prepare energy and process flow diagrams for the site
The Energy Audits are normally carried out in two phases, i.e., Preliminary Energy Audit
(PEA) and Detailed Energy Audit (DEA).
TYPES OF ENERGY AUDIT:-
The type of Energy Audit to be performed depends on:
- Function and type of industry
- Depth to which final audit is needed, and
- Potential and magnitude of cost reduction desired
Thus Energy Audit can be classified into the following two types.
1.4.1) Preliminary Energy Audit (PEA)
1.4.2) Detailed Energy Audit (DEA)
Preliminary Energy Audit (PEA) / House Keeping Practices:-
Considerable savings are possible through small imp could be quite significant. These can
identify by a short survey, observation and measurements. Many energy conscious industries
have already achieved considerable progress in this area.
Approach to Preliminary Energy Audit (PEA)
This essentially involves preliminary data collection and analyses. The PEA is
based on collection of available data, analysis, observation, and inference based on
experience and judgment is carried out within a short time.
The PEA is the first step in implementing an energy conservation programmed, and
consists of essentially collecting and analyzing data without the use of sophisticated
instruments. The ability and experience on the part of Energy Auditor will influence the
degree of its success.
Normally the results of the audit would depend on :-

Experience of the auditor Availability and completeness of data

Physical size of the facility Depth of analysis of available data
Complexity of operations within the Awareness of energy matters within the
facility facility

Broadly, the audit is carried out in six steps:-

1. Organize resources
Manpower / time frame
Instrumentation
2. Identify data requirements
Data forms
3. Collect data
A. Conduct informal
interviews Senior
management
Energy manager/coordinator
Plant engineer
Operators and production management and
personnel Administrative personnel
Financial manager
B. Conduct plant walkthrough/visual
inspection Material/energy flow
through plant Major functional
departments
Any installed instrumentation, including utility
meters Energy report procedures
Production and operational reporting
procedures Conservation opportunities
4. Analyze data
A. Develop data base
Historical data for all energy suppliers
Time frame basis
Other related data
Process flow sheets
Energy consuming equipment inventory
 B. Evaluate data
Energy use consumption, cost, and
schedules Energy consumption indices
Plant operations
Energy savings potential
Plant energy management
program Preliminary energy audit
5. Develop action plan
Conservation opportunities for immediate
implementation Projects for further study
Resources for detailed energy
audit Systems for test
Instrumentation; portable and fixed
Manpower requirements
Time frame
Refinement of corporate energy management programmed
6. Implementation
Implement identified low cost/no cost
projects Perform detailed audit
The preliminary energy audit is essentially, as the name implies a preliminary data
collection and its analysis process. Readily available data on the plants energy systems and
energy-using processes or equipment are obtained and studied. The operation and condition
of equipment are observed by going around the plant. These provide basis to develop
recommendations for immediate short term measures and to provide quick and rough
estimates of savings that are possible and achievable.
A preliminary study usually identifies and assesses obvious areas for energy savings
such as stream leaks, compressed air leaks, poor or missing insulation, condensate
recovery, idling equipment, deterioration and deficiencies in combustion and heat transfer
equipment etc. and serves to identify specific areas for the detailed plant energy study.

P reliminary Energy Audit Methodology:-

Preliminary energy audit is a relatively quick exercise
to: Establish energy consumption in the
organization Estimate the scope for saving
Identify the most likely (and the easiest areas for attention

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 Identify immediate (especially no-/low-cost)
improvements/savings Set a 'reference point'
Identify areas for more detailed study/measurement
Preliminary energy audit uses existing, or easily obtained
data

Detailed Energy Audit (DEA):-

This would be a comprehensive energy efficiency study using portable energy
monitoring instruments. The essential part of this audit is carrying out various
measurements and analyses covering individually every significant energy consuming plant
item/processes, to determine their efficiencies and loss of energy at that point, and potential
energy savings are explored and crystallized, and every recommendation for investment is
supported by criteria such as pay-back analysis.
The detailed plant energy study is a comprehensive analyses evaluation of all
aspects of energy generation, distribution and utilization within the plant. At the plant level,
the analyses require time series data on a daily, monthly, or yearly basis, on the quantities
of all forms of primary energy flowing into the plant, e.g. coal, fuel oil, electricity, etc. and
production figures of major products, by products and waste products, at the department or
section level. Information is required on the quantity of energy forms consumed, and the
production figures of intermediate products. At the equipment level, in addition to the
quantities of energy forms and material products, process parameters such as temperature,
pressure, flow rate, etc. are also required.
Data generation and collection is an essential and critical element of a detailed
energy audit study. Difficulties in getting data required generally arise due to unavailability
of historical records. The acquisition of actual operating data through existing or new
permanently installed instruments or portable test instruments cannot be overemphasized in
this context.
Ten steps methodology for DEA
STEP
PLAN OF ACTION PURPOSE / RESULTS
No
Phase-I: Pre Phase Audit
Step-1 Plan and Organize Resource planning, Establish/organize
Walk through Audit an Energy audit team.
Informal Interview Organize Instruments & time frame
with Energy Manager, Macro Data collection (suitable to type of
Production / Plant industry.)
Manager Familiarization of process/plant activities
First hand observation & Assessment
of current level operation and practices.
Step-2 Conduct of brief meeting / Building up cooperation
awareness programmed with Issue questionnaire for each
all divisional heads and department Orientation, awareness
persons concerned (2-3 hrs.) creation.
Phase-II: Audit Phase
Step-3 Primary data gathering, Historic data analysis, Baseline data
Process Flow Diagram, & collection
Energy Utility Diagram Prepare process flow charts
All service utilities system diagram
(Example: Single line power
distribution diagram, water,
compressed air & steam distribution.
Design, operating data and schedule of
operation
Annual Energy Bill and energy
consumption pattern (Refer manual, log
sheet, name plate, interview)
Step-4 Conduct survey and Measurements:
monitoring Motor survey, Insulation, and Lighting survey
with portable instruments for collection of
more and accurate data. Confirm and compare
operating data with design data.
Step-5 Conduct of detailed trials / Trials/Experiments:
experiments for selected 24hours power monitoring (MD, PF,
energy guzzlers kWh etc.).
Load variations trends in pumps, fan
compressors etc.
Boiler/Efficiency trials for (4-8 hours)
Furnace Efficiency trials
Equipments Performance
experiments etc.,
Step-6 Analysis of energy use Energy and Material balance & energy
loss/waste analysis.
Step-7 Identification and Identification & Consolidation
development of Energy ENCON measures.
Conservation (ENCON) Conceive, develop, and refine ideas
opportunities. Review the previous ideas suggested by
unit personal
Review the previous ideas suggested by
energy audit if any
Use brainstorming and value analysis
techniques
Contact vendors for new/efficient
technology.
Step-8 Cost benefit analysis Assess technical feasibility,
economic viability and prioritization
of ENCON (Energy Conservation)
options for
implementation.
Step-9 Reporting & Presentation to Documentation, Report Presentation to the
the Top Management top Management.
Phase-III: Post Audit Assist and Implement ENCON
Step-10 Phase Implementation and recommendation measures and Monitor
Follow- up the performance
Action plan, Schedule for implementation
Follow-up and periodic review
 The duration of DEA studies depends on plant size and complexity. Whereas the
preliminary energy study can be carried out in a few days, the detailed study would require
anywhere from few weeks to months to years of effort.
Plant energy studies can be carried out in house if adequate resources and expertise
exist for doing so. Alternatively or additionally, external assistance may be sought from
energy consultants, equipment suppliers, and engineering and design firms, in either case,
intense interaction between plant personnel and the study team is essential for a proper
understanding and a meaningful analysis of the plants energy options. Too often, the plant
energy study is considered to be the problem, resulting in minimal inputs and
involvement from plant personnel. This attitude is counter-productive. Without the active
participation of all levels, full benefits cannot be expected to be accomplished.

ENERGY CONSUMPTION MONITORING:-

Energy Consumption is to monitor, assess by a company/industry and compared
with a specific products manufactured by the industry can be done by two parameters as
follows.
They are,
Energy Index
Cost Index

ENERGY INDEX:-
Energy index is the figure obtained by dividing energy consumption by production output.

The index may be calculated weekly, monthly or annually.

consumption of

Although the total energy indices are sufficient for monitoring purposes, a record of
the individual energy indices should be maintained. In the event of an increase or decrease
(due to perhaps a conservation measure) in energy index, the particular source can be
investigated immediately.
Energy may be purchased in various units, for example, coal in tons; gas in ft3,m3,
therms; oil in gallons, liters, tons, barrels etc. the relevant conversion units from one system
to the other are given below:

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EXAMPLE: - To find the energy index we shown below example, here three types of
energy with energy consumption and also produces 100x10 3 tons of a particular product.
Calculate the energy index?
Energy type Consumption Energy (Wh)
Oil 10x103 gal 0520x109
gas 5x103 therm 0.146x109
Electricity 995x103 kwh 0.995x109
Total 1.661x109

ANS: - oil energy index is 0.520x109 wh/100x109 = 5.20x103 wh/ton of product

Gas energy index is 0.146x109 wh/100x109 = 1.46x103 wh/ton of product
` Electricity energy index is 0.995x109 wh/100x109 = 9.95x103 wh/ton of product
Total energy index is 1.661x109 wh/100x109 = 16.61x103 wh/ton of product

COST INDEX:-

The cost index is defined as the cost of energy divided by the production output.

An individual cost index can be determined for each energy form and for the total
energy consumption by the company.
Same example for calculate the cost index in place of total energy, the cost will be used.

REPRESENTATION OF CONSUMPTION:-
Several methods of representing energy flows and energy consumption are available
and these may be graphical or tabular. Most among them are the
pie chart
sankey diagram

PIE CHART:-
Energy usage is plotted on a circular chart where the quantity of a particular type is
represented as a segment of a circle. The size of the segment will be depends upon the
usages of the product. For example, the company uses 25% of gas, 30% of the oil and 45%
of the electricity.
 SANKEY DIAGRAM:-
The sankey diagram represents all the primary energy flows in to a factory. The
widths of the bands are directly proportional to energy production, utilization and losses.
(or)
Sankey diagrams are a specific type of flow diagram, in which the width of the
arrows is shown proportionally to the flow quantity. They are typically used to
visualize energy or material or cost transfers between processes.
They are also commonly used to visualize the energy accounts or material flow
accounts on a regional or national level. Sankey diagrams put a visual emphasis on the
major transfers or flows within a system. They are helpful in locating dominant
contributions to an overall flow. Often, Sankey diagrams show conserved quantities within
defined system boundaries, typically energy or mass, but they can also be used to show
flows of non- conserved quantities such as energy. Sankey Diagrams drop their arrows
when energy is being used.
Following Figure shows a Sankey diagram which represents all the primary energy
flows into a factory. The widths of the bands are directly proportional to energy production
(source), utilization and losses. The primary energy sources are gas, electricity and coal/oil
(say, for steam generation) and represent energy inputs at the left-hand side of the Sankey
diagram.
For example the steam flows from input to output and also the electrical energy uses
by showing the sankey diagram is shown in below figure,
 Boiler Losses

For the purpose of monitoring and checking energy consumption and usage on a
weekly or monthly basis, pie charts and Sankey diagram are relatively difficult. An
alternative method of monitoring energy consumption on a time-dependent basis is to use
load profiles.
 LOAD PROFILES (HISTOGRAM):-
For the purpose of monitoring and checking energy consumption on a time
dependent basis is to use load profiles. In electrical engineering, a load profile is a graph of
the variation in the electrical load versus time. A load profile will vary according to
customer type (typical examples include residential, commercial and industrial),
temperature and holiday seasons.
The usages of oil, gas and electricity in a plant can be plotted on a graph as shown
in following Figure. The results illustrate seasonal variations and perhaps variations in
production schedules. This technique has the major advantage that after a period of time,
energy consumption patterns emerge and it is possible to tell at a glance if an area is
exceeding its predicted value. An overall load profile equivalent to several pie charts and
sankey diagrams can be obtained by plotting the previous profiles can be also drawn.

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

Monthly Load Profile (kw) for electricity

usage
700
600
500

400
300
200

100
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
 Load profiles can be determined by direct metering but on smaller devices such as distribution network transforme

inferred from customer billing or other data. An example of a practical calculation used by
utilities is using a transformer's maximum demand reading and taking into account the
known number of each customer type supplied by these transformers. This process is called
load research.
 ENERGY CONSERVATION SCHEMES:-
Development of an energy conservation programmed can provide savings by
reduced energy use. However, it is economical to implement an energy conservation
program only when savings can offset implementation cost over a period of time. Potential
areas of conserving energy and a logical analysis of the methods or techniques of
conservation would provide a systematic and disciplined approach to the entire
conservation strategy as a sequel to the energy audit. Some established conservation trends
are replacement, retrofit, process innovation, fuel conversion and co-generation.
It is generally considered that investment for energy conservation should be judged
by exactly the same criteria as for any other form of capital investment. Energy
conservation measures may be classified on an economic basis and fall into the following
three categories:

Short term: These measures usually involve changes in operating practices

resulting in little or no capital expenditure.
Medium term: Low-cost modifications and improvements to existing equipment
where the pay-back period is less than two years and often under one year.
Long term: Modifications involving high capital costs and which frequently
involve the implementation of new techniques and new technologies.

While the first two categories together can achieve savings of the order of 5-10%,
capital expenditure using existing and new technology may achieve a further 10-15%. It is
impossible to give a comprehensive list of all items in each category but selected examples
are given for each section.

Short-term energy conservation schemes:-

Items in this group can be considered as a tightening of operational control and
improved housekeeping.
a) Furnace efficiencies: greater emphasis should be placed on minimum excess
combustion air. Oxygen levels of flue gases should be continually monitored and
compared with target values. Oil burners must be cleaned and maintained regularly.
b) Heat exchangers: in the case of heat exchangers where useful heat is transferred
form product streams to feed streams, careful monitoring of performance should be
carried out to determine optimum cleaning cycles. Frequency of cleaning will
generally increase as a result, with consequent improved heat recovery.

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 c) Good housekeeping: doors and windows should be kept closed as much as possible
during the heating season. Wear natural light is sufficient, do not use artificial light.
Avoid excessive ventilation during the heating season. Encourage staff to wear
clothing appropriate to the temperature of the working areas.
d) Use of steam: major steam leaks should be repaired as soon as possible after they

distillation columns where live steam is used for stripping purposes, the amount
required should be optimized and carefully controlled.
e) Electrical power:
conservation measures can reduce the annual electricity costs by 10-15%. Steam
driven turbines may prove more economical as prime movers. Natural air cooling
may be sufficient and therefore induced-draught fans may be taken out of
commission. Pumping costs can sometimes be saved by utilizing gravity to move
products from one tank to another. Where possible, use off-peak electricity.

Medium-term energy conservation schemes:-

Significant savings in energy consumption are often available for quite modest
outlays of capital based on a pay-back period of less than two years.
a) Insulation: Improving insulation to prevent cold air leaking into the building and
also, improving insulation of the steam distribution system. Many optimum
insulation thicknesses were determined at a time when fuel oil was £6 per tone and,
consequently, at present fuel oil prices, optimum thicknesses have increased
appreciable. In addition, in older plants lagging may have deteriorated to varying
degrees.
In one company, additional insulation was added to four boiler casing after
calculation had showed the structures could accept the increase in temperature. For an
outlay of £25000, savings of £60000 per annum were achieved.
In an oil refinery the lagging on the process steam system was up rated to new
optimum thicknesses and the £20000 invested in the project was recouped within a year.
b) Heating systems: Improving the time and temperature control of the heating
systems in buildings should result in substantial energy savings.
c) Replacing air compressors
d) Instrumentation: to measure and control the energy conservation parameters,
adequate instrumentation must be provided or operators will soon lose interest in
 maintaining efficiencies if they are working with inadequate and unreliable
instruments.
e) Process modifications: Many of these schemes will depend on the nature of the
industry concerned, however, one general scheme will be considered. Steam
condensate, if uncontaminated, may be used as boiler feed water. Improved
condensate return systems can increase the amount recovered. The effect will be to
increase the heat recovered in the condensate and at the same time reduce raw water
and treatment costs.
In one instance 10000 kg h-1 of condensate was recovered for an investment of
£10000; the pay-back time was less than six months.
f) Burners: the control and amount of atomizing steam is important and often in
furnaces and boilers the amount of atomizing steam is far in excess of design.
In a hospital two fuel oil-fired boilers were examined and in some instances it was
found that 1 kg steam/kg fuel oil was being utilized. The oil burners were replaced and the
atomizing steam requirements are now 0.1 kg steam/kg fuel oil. The pay-back for an outlay
of £12000 was ten months.
g) Electrical Power Savings: considerable savings may be made by adjusting the
electrical power factor correction.
Capacitors were installed in one particular company at a cost of £10000. The power
factor was increased from 0.84 to 0.97 reducing the maximum demand level by over 14 per
cent. The pay-back time was nine months.
To increase plant capacity two feed pumps may be run in parallel to achieve the
required feed rate. When replacement, for mechanical reasons, becomes necessary it is
more economical to replace the pumps by a single pump having a higher capacity.

Long-term energy conservation schemes:-

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

ENERGY AUDIT OF INDUSTRIES:-

The manufacturing industry in India, accounts for over 50% of total commercial
energy used in the country. Across the world, industry consumes about 1/3 of all natural
energy sources. Hence, it is very important to concentrate on conserving energy in the
industrial sector.
Normally electricity and HSD are the main energy sources to any industry.
Electricity is used for driving motors of air compressors, refrigeration compressors, pumps,
fans, blowers, machinery, welding sets and lighting. HSD is used for running DG sets,
which are used in case of power failure from the grid. Electricity may also be used for
heating and drying ovens etc. and for other applications. Some industries use coal, bagasse,
rice husk etc. mainly for steam generation.
The major energy consuming equipment/systems in a typical industry are listed
below: Electrical systems
Electric
drives Steams
system
Furnaces
Compressed Air System
Air Conditioning & Refrigeration
Pumping systems
Cooling Towers
Fans and Blowers
Lighting System
Diesel Generating Sets
Brief scope of energy conservation in the above equipment/system is given below
Electrical Systems
The scope in Electrical System comprises of transformer loading practices, Power
Factor Management, analysis/optimizing Voltage levels, Distribution losses and Harmonic
levels. A specific observation on daily load curve for possibility of further suppression of
demand especially during peak load hours will be looked into.
Electric Drives
Following recommendations could be made based on actual measurements and analysis
Proper sizing of motor
Use of energy efficient motor by replacing oversized and less efficient motors
Retrofitting inverters or soft-starters
Re-shuffing of motors as per loading
Possibility of operating motors in star mode wherever motors are under-
loaded Reactive power compensation for motors
Steam System
An in-depth study of steam system covering steam generation, distribution and utilization
would cover the following:
Efficiency evaluation of boiler by indirect heat loss method
Optimum steam generating pressure
Quantification of steam leakages
Steam trap survey
Insulation aspects including insulation
surveys Optimization of steam utilization
End use equipment (generally, heat transfer equipment, viz. driers, etc.)
Alternate (cheaper) fuels for combustion.

ENERGY AUDIT OF PROCESS INDUSTRY:-

An energy audit is a key to assessing the energy performance of an industrial plant and for
developing an energy management program. The typical steps of an energy audit are:
i) Preparation and planning
ii) Data collection and review
iii) Plant surveys and system measurements
iv) Observation and review of operating practices
v) Data documentation and analysis
vi) Reporting of the results and recommendations.
An overview of the procedure for a detailed industrial energy audit is shown in
Figure. A preliminary audit (walk-through audit) contains some of the same steps of the
procedure shown, but the depth of the data collection and analysis might be different
depending on the scope and objectives of the audit.

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 Overall, there are three main steps (excluding the post-audit activities) each of
which has several sub-steps. These three main steps are energy audit preparation,
execution, and reporting.
 ENERGY SAVING POTENTIAL:-
We estimate the energy savings potential for each of the selected industries.
Methodologically such an exercise involves use of (energy) efficiency benchmark of some
of the best performing units within the concerned industry. Energy efficiency
benchmarking for an industry is a process by which energy performance of an individual
firm/unit within the industry or a sector comprising of similar units are compared against a
common metric which represents a standard. It may entail, comparing for a sector or
industry, energy performance of a number of units against each other in any given year or
comparing the performance of an individual unit or industry over time or comparing its
performance if it were using the best available or state of the art technology or comparing
its performance via units/sectors in other countries and so on. As benchmarking is used as a
tool for comparison it should have an important characteristic that the metric used should
be independent of unit size. In the present study the metric used for benchmark analysis is
energy intensity.
There are a large number of units/firms of varying sizes within an industry.
Comparing energy intensity of a small unit with that of a large one may not be meaningful
because of the scale of operation. In order to overcome the problem of comparing
dissimilar units, units within an industry are grouped/classified into different groups on the
basis of
a) share in final energy consumption (measured in kgoe),
b) share in electricity consumption (measured in Kwh), and
c) total output (measured in rupees), so that units within a group are all similar.
Energy savings potential is then calculated for each group within the industry.
Having classified the units within an industry into different groups, units within a group are
ranked in order of their energy intensities. Energy intensity of a unit is defined as total final
energy consumed for generating one unit of output. Since the output is measured in
monetary units, energy intensity is defined as energy consumed for generating Re. 1 worth
of output. Two measures of energy intensity has been used depending on the way in which
the units are grouped. These are

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 B UILDING ENERGY AUDIT:-
The energy audit in a building is a feasibility study. For it not only serves to identify
energy use among the various services and to identify opportunities for energy
conservation, but it is also a crucial first step in establishing an energy management
programmed. The audit will produce the data on which such a programmer is based. The
study should reveal to the owner, manager, or management team of the building the options
available for reducing energy waste, the costs involved, and the benefits achievable from
implementing those energy-conserving opportunities (ECOs).
The energy management programmed is a systematic on-going strategy for
controlling a building's energy consumption pattern. It is to reduce waste of energy and
money to the minimum permitted by the climate the building is located, its functions,
occupancy schedules, and other factors. It establishes and maintains an efficient balance
between a building's annual functional energy requirements and its annual actual energy
consumption.
The energy audit may range from a simple walk-through survey at one extreme to one that
may span several phases. These phases include a simple walk-through survey, followed by
monitoring of energy use in the building services, and then model analysis using computer
simulation of building operation. The complexity of the audit is therefore directly related to
the stages or degree of sophistication of the energy management programmed and the cost
of the audit exercise.
The first stage is to reduce energy use in areas where energy is wasted and
reductions will not cause disruptions to the various functions. The level of service must not
be compromised by the reduction in energy consumed. It begins with a detailed, step-by-
step analysis of the building's energy use factors and costs, such as insulation values,
occupancy schedules, chiller efficiencies, lighting levels, and records of utility and fuel
expenditures. It includes the identification of specific ECOs, along with the cost-effective
benefits of each one. The completed study would provide the building owner with a
thorough and detailed basis for deciding which ECOs to implement, the magnitude of
savings to be expected, and the energy conservation goals to be established and achieved in
the energy management programmed. However, the ECOs may yield modest gains.
The second stage is to improve efficiency of energy conversion equipment and to
reduce energy use by proper operations and maintenance. For this reason, it is necessary to
reduce the number of operating machines and operating hours according to the demands of
the load, and fully optimize equipment operations. Hence the ECOs would include the
following:

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 i) Building equipment operation,
ii) Building envelope,
iii) Air-conditioning and mechanical ventilation equipment and systems,
iv) Lighting systems,
v) Power systems, and
vi) Miscellaneous services.
The first two stages can be can be implemented without remodeling buildings and
existing facilities.
The third stage would require changes to the underlying functions of buildings by
remodeling, rebuilding, or introducing further control upgrades to the building. This
requires some investment.
The last stage is to carry out large-scale energy reducing measures when existing
facilities have past their useful life, or require extensive repairs or replacement because of
obsolescence. In this case higher energy savings may be achieved. For these last two stages,
the audit may be more extensive in order to identify more ECOs for evaluation, but at an
increased need for heavier capital expenditure to realize these opportunities.