1.3 energy management & audit

3. Energy Management and Audit

3. ENERGY MANAGEMENT AND AUDITSyllabus Energy Management & Audit: Definition, Energy audit- need, Types of energy audit, Energy management (audit) approach-understanding energy costs, Bench marking, Energy performance, Matching energy use to requirement, Maximizing system efficiencies, Optimizing the input energy requirements, Fuel and energy substitution, Energy audit instruments

3.1 Definition & Objectives of Energy ManagementThe fundamental goal of energy management is to produce goods and provide services with the least cost and least environmental effect. The term energy management means many things to many people. One definition of energy management is: 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) Another comprehensive definition is The strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output while holding constant or reducing total costs of producing the output from these systems The objective of Energy Management is to achieve and maintain optimum energy procurement and utilisation, throughout the organization and: To minimise energy costs / waste without affecting production & quality To minimise environmental effects.

3.2 Principles of Energy ManagementThe principles of Energy Management involve the following: i. Procure all the energy needed at the lowest possible price (Example: buy from original sources, review the purchase terms) ii. Manage energy use at the highest energy efficiency (Example: improving energy use efficiency at every stage of energy transport, distribution and use) iii. Reusing and recycling energy by cascading (Example: waste heat recovery)

Bureau of Energy Efficiency

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iv. Use the most appropriate technology (select low investment technology to meet the present requirement and environment condition) v. Reduce the avoidable losses. (Make use of wastes generated within the plant as sources of energy and reducing the component of purchased fuels and bills)

3.3

Energy Management Skills

Energy Management involves a combination of both managerial and technical skills / knowledge. Managerial skills, which includes bringing about awareness, motivating people at all levels, changing the structure & procedure, monitoring the energy consumption, norms target setting, etc. Both the organizational and people changes are required. For example, a mere awareness campaign in an industry on switching off lights, fans and air conditioners brought about a significant reduction in energy consumption. Technical skills are a pre-requisite in improving the energy efficiency of a process or equipment such as boilers, furnaces etc. For example, to improve the boiler efficiency one need to know the principles of combustion, heat transfer and steam generation. Energy Manager should be technically well versed with manufacturing process, energy utilization technologies, in addition to awareness of statistical techniques of data processing, applied economics and cost accountancy.

3.4

Energy Management Strategy

Energy management should be seen as a continuous process. Strategies should be reviewed annually and revised as necessary. The key activities (see Figure 3.1) are outlined below: 1. Identify a Strategic Corporate Approach The starting point in energy management is to identify a strategic corporate approach to energy management. Clear accountability for energy management needs to be established, appropriate financial and staffing resources must be allocated, and reporting procedures initiated. An energy management program requires commitment from the whole organisation in order to be successful.


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2. Appoint Energy Manager The energy manager, who should be a senior staff member, will be responsible for the overall coordination of the program and will report directly to top management. Energy managers need to have a technical background, need to be familiar with the organisations activities and have appropriate technical support. 3. Set up an Energy Monitoring and Reporting System Successful energy management requires the establishment of a system to collect, analyse and report on the organisations energy costs and consumption. This will enable an overview of energy use and its related costs, as well as facilitating the identification of savings that might otherwise not be detected. The system needs to record both historical and ongoing energy use, as well as cost information from billing data, and be capable of producing summary reports on a regular basis. This information will provide the means by which trends can be analysed and tariffs reviewed. 4.Conduct Energy Audit An energy audit establishes both where and how energy is being used, and the Figure 3.1 Energy Management Steps potential for energy savings. It includes a walk-through survey, a review of energy using systems, analysis of energy use and the preparation of an energy budget, and provides a baseline from which energy consumption can be compared over time. An audit can be conducted by an employee of the organization who has appropriate expertise, or by a specialist energy-auditing firm. An energy audit report also includes recommendations for actions, which will result in energy and cost savings. It should also indicate the costs and savings for each recommended action, and a priority order for implementation.


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5. Formalize an Energy Management Policy Statement A written energy management policy will guide efforts to improve energy efficiency, and represents a commitment to saving energy. It will also help to ensure that the success of the program is not dependent on particular individuals in the organization. An energy management policy statement includes a declaration of commitment from senior management, as well as general aims and specific targets relating to: Energy consumption reduction (electricity, fuel oil, gas, petrol etc.) Energy cost reduction (by lowering consumption and negotiating lower unit rates) Timetables Budgetary limits Energy cost centers Organisation of management resources. Samples of the energy management policy, as declared by few progressive companies, are given in the following pages:


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ENERGY MANAGEMENT POLICY Tata Chemicals Limited Fertilizer Division, Babrala M/s Tata Chemicals Limited in its endeavour to play leading role in the important economic issue of our Nation, it is committed and continually striving to be the lowest specific energy consumer in the industry it operates. At Babrala we believe that Communication, Culture and Commitment are the key driving forces for us in making Energy Conservation (ENCON) a way of life at our plant. We plan to achieve this by following: Manage efficiently the utilization of energy resources (like Natural gas, Naphtha, HSD), updating hardware, operational practices and employ cleaner and more efficient technology as appropriate. Train and educate our Employees/Residents to be the trendsetter in the areas of ENCON. Carry out regular internal and external audits to identify and communicate areas of improvements and benchmark continuously our performance against the world best, to identify the ENCON opportunities. Share and enrich our experiences on energy conservation with other organization, and own group companies. As a part of ENCON strategy, Babrala is committed to reduce our specific energy consumption of urea @ 1.0% minimum every year till 2007, by promoting the culture of innovation and creativity, and aligning the commitment at all levels. Date: 18th April, 2003 Place: TCL, Babrala P M Khanderia General Manager-Operations


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ENERGY POLICY (Hindalco Industries Limited) As a way of life, we, the employees of Hindalco Industries Limited are committed and pledge to conserve Energy judiciously in all our activities, products and services across the organization. We shall endeavour to transform energy conservation into a strategic business goal fully aligning with technological advancements by improving the skill and knowledge of our employees for sustainable development. To achieve excellence, our objectives therefore will be: to reduce specific energy consumption in all our operations and activities. to produce high purity metal with high conductivity to achieve minimum power losses. to conserve fossil fuels through enhanced use of renewable energy/recovered waste energy. to adopt energy efficient technologies/equipment for all new projects to ensure energy conservation awareness programme throughout the organization to recognize efforts of our employee and their family members in energy conservation initiatives to replace old energy inefficient technology/equipment with the latest energy efficient state of art technology / equipment continually. to control energy consumption by periodic review and improving our processes by motivation and training practices. to sustain energy efficiency gains by establishing and maintaining a management information system designed to support managerial decision-making. to conduct regular management reviews to ensure continual improvement and achieve of our goal. Date:10.8.02 A.K. Agarwala Director (whole time)


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Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant

ENERGY POLICYWe, at Visakhapatnam Steel Plant, are committed to optimally utilise various forms of energy in a cost effective manner to effect conservation of energy resources. To accomplish this we will : Monitor closely and control the consumption of various forms of energy through an effective Energy Management System. Adopt appropriate energy conservation technologies. Maximise the use of cheaper and easily available forms of energy. Make energy conservation a mass movement with the involvement of all employees. Maximise recovery of waste energy. Reduce Specific Energy Consumption by 1% per year by 2010. Dr. B.N. Singh Chairman-cum-Managing Director

Date 14-06-2002

KESORAM RAYON (Division of Kesoram Industries Ltd.) ENERGY POLICYWe shall strive for continuous energy economy through Formulation of overall energy strategy and targets. All round participation of all employees through Small Group Activities Improved capacity utilization Upgradation of process, technology and equipment Better plant layout As a part of our energy conservation and environment protection, we are committed to reduce specific energy consumption by 1% every year till 2010. J.D. PALOD President


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NRC LIMITEDENERGY CONSERVATION POLICY NRC Limited is committed to energy conservation for all its products & related operations. Efforts will be made to reduce energy consumption in every possible ways as under: Replacing old & outdated machinery, equipment by new energy efficient equipment Benchmarking all products/services for energy consumption by comparison at regional as well as national level Conducting energy conservation studies including audits with a view to minimise waste. Creating awareness among employees &nearby population through campaigns, publicity about need for energy conservation We are committed to reduce our energy consumption by minimum 1% every year till 2010. P.S. Sharma Managing Director

Maral Overseas LimitedP.O.Maral Sarovar, A.B.Road Khalbujurg 451660 District Khargone (M.P.) ENERGY CONSERVATION POLICY We are committed to conserve the energy which is a scarce resource with the requisite consistency in the efficiency, effectiveness in the cost involved in the operations and ensuring that production quality and quantity, environment, safety, health of people are maintained. We are also committed to monitoring continuously the saving achieved and reduce its specific energy consumption by minimum of 1% every year. M S. ANJANE PRESIDENT


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6. Prepare and Undertake a Detailed Project Implementation Plan A project implementation plan should be developed as part of the energy audit and be endorsed by management. The plan should include an implementation time table and state any funding and budgetary requirements. Projects may range from establishing or changing operational procedures to ensure that plant and equipment use minimum energy, renegotiating electricity supply arrangements etc. to adopting asset acquisition programs that will reduce energy consumption. An overall strategy could be to introduce energy management projects, which will achieve maximum financial benefits at least cost to the organisation. 7. Implement a Staff Awareness and Training Program A key ingredient to the success of an energy management program is maintaining a high level of awareness among staff. This can be achieved in a number of ways, including formal training, newsletters, posters and publications, and by incorporating energy management into existing training programs. It is important to communicate program plans and case studies that demonstrate savings, and to report results at least at 12-month intervals. Staff may need training from specialists on energy saving practices and equipment. 8. Annual Review An energy management program will be more effective if its results are reviewed annually. Review of energy management policy and strategies will form the basis for developing an implementation plan for the next 12 months.


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3.5

Energy Audit: Types And Methodology

Energy Audit is the key to a systematic approach for decision-making in the area of energy management. It attempts to balance the total energy inputs with its use, and serves to identify all the energy streams in a facility. It quantifies energy usage according to its discrete functions. Industrial energy audit is an effective tool in defining and pursuing comprehensive energy management programme. 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. 3.5.1 Need for Energy Audit In any industry, the three top operating expenses are often found to be energy (both electrical and thermal), labour and materials. 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. Energy Audit will help to understand more about the ways energy and fuel are used in any industry, and help in identifying the areas where waste can occur and where scope for improvement exists. The Energy Audit would give a positive orientation to the energy cost reduction, preventive maintenance and quality control programmes which are vital for production and utility activities. Such an audit programme will help to keep focus on variations which occur in the energy costs, availability and reliability of supply of energy, decide on appropriate energy mix, identify energy conservation technologies, retrofit for energy conservation equipment etc. In general, Energy Audit is the translation of conservation ideas into realities, by lending technically feasible solutions with economic and other organizational considerations within a specified time frame. 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 benchmark (Reference point) for managing energy in the organization and also provides the basis for planning a more effective use of energy throughout the organization. 3.5.2 Type 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


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Thus Energy Audit can be classified into the following two types. i) Preliminary Audit ii) Detailed Audit 3.5.3 Preliminary Energy Audit Methodology Preliminary energy audit is a relatively quick exercise to: Establish energy consumption in the organization Estimate the scope for saving Identify the most likely (and the easiest areas for attention Identify immediate (especially no-/low-cost) improvements/ savings Set a reference point Identify areas for more detailed study/measurement Preliminary energy audit uses existing, or easily obtained data 3.5.4 Detailed Energy Audit Methodology A comprehensive audit provides a detailed energy project implementation plan for a facility, since it evaluates all major energy using systems. This type of audit offers the most accurate estimate of energy savings and cost. It considers the interactive effects of all projects, accounts for the energy use of all major equipment, and includes detailed energy cost saving calculations and project cost. In a comprehensive audit, one of the key elements is the energy balance. This is based on an inventory of energy using systems, assumptions of current operating conditions and calculations of energy use. This estimated use is than compared to utility bill charges. Detailed energy auditing is carried out in three phases: Phase I, II and III. Phase I - Pre Audit Phase Phase II - Audit Phase Phase III - Post Audit Phase A Guide for Conducting Energy Audit at a Glance Industry-to-industry, the methodology of Energy Audits needs to be flexible. A comprehensive ten-step methodology for conduct of Energy Audit at field level is presented below. Energy Manager and Energy Auditor may follow these steps to start with and add/change as per their needs and industry types.


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Ten Steps Methodology for Detailed Energy AuditStep No Step 1 PLAN OF ACTION Phase I Pre Audit Phase Plan and organise Walk through Audit Informal Interview with Energy Manager, Production / Plant Manager Conduct of brief meeting / awareness programme with all divisional heads and persons concerned (2-3 hrs.) Resource planning, Establish/organize a Energy audit team Organize Instruments & time frame Macro Data collection (suitable to type of industry.) Familiarization of process/plant activities First hand observation & Assessment of current level operation and practices Building up cooperation Issue questionnaire for each department Orientation, awareness creation PURPOSE / RESULTS

Step 2

Step 3

Phase II Audit Phase Primary data gathering, Process Flow Diagram, & Energy Utility Diagram

Historic data analysis, Baseline data collection 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) Measurements : Motor survey, Insulation, and Lighting survey with portable instruments for collection of more and accurate data. Confirm and compare operating data with design data. Trials/Experiments: - 24 hours power monitoring (MD, PF, kWh etc.). - Load variations trends in pumps, fan

Step 4

Conduct monitoring

survey

and

Step 5

Conduct of detailed trials /experiments for selected energy guzzlers


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Step6 Analysis of energy use Step 7 Identification and development of Energy Conservation (ENCON) opportunities

compressors etc. Boiler/Efficiency trials for (4 8 hours) Furnace Efficiency trials Equipments Performance experiments etc

Energy and Material balance & energy loss/waste analysis Identification & Consolidation ENCON measures Conceive, develop, and refine ideas 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 Assess technical feasibility, economic viability and prioritization of ENCON options for implementation Select the most promising projects Prioritise by low, medium, long term measures Documentation, Report Presentation to the top Management.

Step 8

Cost benefit analysis

Step9

Reporting & Presentation to the Top Management

Phase III Post Audit phase Step10

Implementation and Followup Assist and Implement ENCON recommendation measures and Monitor the performance Action plan, Schedule for implementation Follow-up and periodic review


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Phase I 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. Initial Site Visit and Preparation Required for Detailed Auditing 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. During the initial site visit the Energy Auditor/Engineer should carry out the following actions: Discuss with the sites senior management the aims of the energy audit. Discuss economic guidelines associated with the recommendations of the audit. Analyse 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

The main aims of this visit are: To finalise 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 centers To create awareness through meetings/ programme

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. Detailed studies to establish, and investigate, energy and material balances for specific plant departments or items of process equipment are carried out. Whenever possible, checks of plant operations are carried out over extended periods of time, at nights and at weekends as well as during normal daytime working hours, to ensure that nothing is overlooked.


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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. Means of improving these efficiencies will be listed, and at least a preliminary assessment of the cost of the improvements will be made to indicate the expected payback on any capital investment needed. 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. The information to be collected during the detailed audit includes: 1. Energy consumption by type of energy, by department, by major items of process equipment, by end-use 2. 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.) 3. Energy cost and tariff data 4. Process and material flow diagrams 5. Generation and distribution of site services (eg.compressed air, steam). 6. Sources of energy supply (e.g. electricity from the grid or self-generation) 7. Potential for fuel substitution, process modifications, and the use of co-generation systems (combined heat and power generation). 8. Energy Management procedures and energy awareness training programs within the establishment. Existing baseline information and reports are useful to get consumption pattern, production cost and productivity levels in terms of product per raw material inputs. The audit team should collect the following baseline data: Technology, processes used and equipment details Capacity utilisation 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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DATA COLLECTION HINTS It is important to plan additional data gathering carefully. Here are some basic tips to avoid wasting time and effort: 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) 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

Draw process flow diagram and list process steps; identify waste streams and obvious energy wastage An overview of unit operations, important process steps, areas of material and energy use and sources of waste generation should be gathered and should be represented in a flowchart as shown in the figure below. Existing drawings, records and shop floor walk through will help in making this flow chart. Simultaneously the team should identify the various inputs & output streams at each process step. Example: A flowchart of Penicillin-G manufacturing is given in the figure3.2 below. Note that waste stream (Mycelium) and obvious energy wastes such as condensate drained and steam leakages have been identified in this flow chart The audit focus area depends on several issues like consumption of input resources, energy efficiency potential, impact of process step on entire process or intensity of waste generation / energy consumption. In the above process, the unit operations such as germinator, prefermentor, fermentor, and extraction are the major conservation potential areas identified.


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PENICILLIN-G FERMENTATIONEnergySteam, Air, Cooling water Chilled waterCondensate

Raw Material

GERMINATOR PREFERMENTORSteam Leak

Seed Inoculation Raw Material

Steam, Air, Cooling water Chilled waterCondensate

Raw Material

Steam, Air, Cooling water Chilled waterCondensate

FERMENTOR NON FILTERED BROTH TANKFILTER PRESSMycelium to ETP

Raw Material

Chilled Brine

Compressed Air, Treated Water, Raw WaterSteam, Air, Cooling water Chilled water, BrineCondensate

Waste Stream

Mother liquor to Extraction

EXTRACTION

Impurities with Waste Water to ETP

Stream

Penicillin-GFigure 3.2

Identification of Energy Conservation Opportunities Fuel substitution: Identifying the appropriate fuel for efficient energy conversion Energy generation :Identifying Efficiency opportunities in energy conversion equipment/utility such as captive power generation, steam generation in boilers, thermic fluid heating, optimal loading of DG sets, minimum excess air combustion with boilers/thermic fluid heating, optimising existing efficiencies, efficienct energy conversion equipment, biomass gasifiers, Cogeneration, high efficiency DG sets, etc. Energy distribution: Identifying Efficiency opportunities network such as transformers, cables, switchgears and power factor improvement in electrical systems and chilled water, cooling water, hot water, compressed air, Etc. Energy usage by processes: This is where the major opportunity for improvement and many of them are hidden. Process analysis is useful tool for process integration measures.


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Technical and Economic feasibility The technical feasibility should address the following issues Technology availability, space, skilled manpower, reliability, service etc The impact of energy efficiency measure on safety, quality, production or process. The maintenance requirements and spares availability

The Economic viability often becomes the key parameter for the management acceptance. The economic analysis can be conducted by using a variety of methods. Example: Pay back method, Internal Rate of Return method, Net Present Value method etc. For low investment short duration measures, which have attractive economic viability, simplest of the methods, payback is usually sufficient. A sample worksheet for assessing economic feasibility is provided below:Sample Worksheet for Economic Feasibility

Name of Energy Efficiency Measure

1. Investment Equipments Civil works Instrumentation Auxiliaries

2.

Annual operating costs

3. Annual savings

Cost of capital Thermal Energy Maintenance Electrical Energy Manpower Raw material Energy Waste disposal Depreciation Net Savings /Year (Rs./year) Payback period in months = (Annual savings-annual operating costs) = (Investment/net savings/year) x 12

Classification of Energy Conservation Measures Based on energy audit and analyses of the plant, a number of potential energy saving projects may be identified. These may be classified into three categories: 1. Low cost high return; 2. Medium cost medium return; 3. High cost high return Normally the low cost high return projects receive priority. Other projects have to be analyzed, engineered and budgeted for implementation in a phased manner. Projects relating to energy cascading and process changes almost always involve high costs coupled with high returns, and may require careful scrutiny before funds can be committed. These projects are generally complex and may require long lead times before they can be implemented. Refer Table 3.1 for project priority guidelines.


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Table 3.1 Project Priority Guideline

Priority A - Good B -May be C -Held D -No

Economical Feasibility Well defined and attractive Well defined and only marginally acceptable Poorly defined and marginally unacceptable Clearly not attractive

Technical Feasibility Existing technology adequate Existing technology may be updated, lack of confirmation Existing technology is inadequate Need major breakthrough

Risk / Feasibility No Risk/ Highly feasible Minor operating risk/May be feasible Doubtful Not feasible

3.6 Energy Audit Reporting FormatAfter successfully carried out energy audit energy manager/energy auditor should report to the top management for effective communication and implementation. A typical energy audit reporting contents and format are given below. The following format is applicable for most of the industries. However the format can be suitably modified for specific requirement applicable for a particular type of industry.


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Report on

DETAILED ENERGY AUDITTABLE OF CONTENTSi. Acknowledgement ii. Executive Summary Energy Audit Options at a glance & Recommendations 1.0 Introduction about the plant 1.1 General Plant details and descriptions 1.2 Energy Audit Team 1.3 Component of production cost (Raw materials, energy, chemicals, manpower, overhead, others) 1.4 Major Energy use and Areas 2.0 Production Process Description 2.1 Brief description of manufacturing process 2.2 Process flow diagram and Major Unit operations 2.3 Major Raw material Inputs, Quantity and Costs 3.0 Energy and Utility System Description 3.1 3.2 List of Utilities Brief Description of each utility 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 Electricity Steam Water Compressed air Chilled water Cooling water


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4.0

Detailed Process flow diagram and Energy& Material balance 4.1 Flow chart showing flow rate, temperature, pressures of all inputoutput streams 4.2 Water balance for entire industry

5.0

Energy efficiency in utility and process systems 5.1 Specific Energy consumption 5.2 Boiler efficiency assessment 5.3 Thermic Fluid Heater performance assessment 5.4 Furnace efficiency Analysis 5.5 Cooling water system performance assessment 5.6 DG set performance assessment 5.7 Refrigeration system performance 5.8 Compressed air system performance 5.9 Electric motor load analysis 5.10 Lighting system

6.0

Energy Conservation Options & Recommendations 6.1 6.2 List of options in terms of No cost/ Low Cost, Medium cost and high investment Cost, Annual Energy & Cost savings, and payback Implementation plan for energy saving measures/Projects

ANNEXURE A1. List of Energy Audit Worksheets A2. List of instruments A3. List of Vendors and Other Technical details


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The following Worksheets (refer Table 3.2 & Table 3.3) can be used as guidance for energy audit assessment and reporting.Table 3.2 Summary of Energy Saving Recommendations

S.No.

Energy Saving Recommendations

Capital Annual Annual Investment Energy (Fuel Savings Rs.Lakhs (Rs.Lakhs) & Electricity) Savings (kWh/kl/MT

Simple Payback period

1 2 3 4 Total

Table 3.3 Types and Priority of Energy Saving Measures Annual Type of Energy Annual Savings Saving Options Electricity /Fuel savingsKWh/KL /T A B (Rs Lakhs)

Priority

No Investment (Immediate)Operational Improvement Housekeeping

Low Investment (Short to Medium Term)Controls Equipment Modification Process change High Investment (Long Term) Energy efficient Devices Product modification Technology Change

C -


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Reporting Format for Energy Conservation Recommendations A: Title of Recommendation B: Description of Existing System and its operation : : Combine DG set cooling tower with main cooling tower Main cooling tower is operating with 30% of its capacity. The rated cooling water flow is 5000 m3/hr.Two cooling water pumps are in operation continuously with 50% of its rated capacity. A separate cooling tower is also operating for DG set operation continuously. The DG Set cooling water flow is only 240 m3/h. By adding this flow into the main cooling tower, will eliminate the need for a separate cooling tower operation for DG set, besides improving the %loading of main cooling tower. It is suggested to stop the DG set cooling tower operation. 5000 m / hr 8 oC 3000 m3/hr 4 oC (3000 x 4)/(5000 x 8) = 30% 240 m3/hr 5oC 1200,000 K.Cal/hr3

C: Description of Proposed system and its operation

:

D: Energy Saving Calculations Capacity of main cooling tower Temp across cooling tower (design) Present capacity Temperature across cooling tower(operating) % loading of main cooling tower Capacity of DG Set cooling tower Temp across the tower Heat Load (240x1000 x 1x 5) Power drawn by the DG set cooling tower No of pumps and its rating No of fans and its rating Power consumption@ 80% load Additional power required for main cooling tower for additional water flow of 240m3/h (66.67 l/s) with 6 kg/cm2 Net Energy savings E: Cost Benefits Annual Energy Saving Potential Annual Cost Savings Investment (Only cost of piping) Simple Pay back Period

= = = = = = = =

= = = =

2 nos x 7.5 kW 2 Nos x 22 kW (22 x2 +7.5 x2) x.80 = 47 kW (66.67 x 6) / (102 x 0.55) = 7 kW

= = = = =

47 7 = 40 kW 40kWx 8400hr = 3,36,000 Units/Year 3,36,000 xRs.4.00 = Rs.13.4 Lakh per year Rs 1.5Lakhs Less than 2 months


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3.7

Understanding Energy Costs

Understanding energy cost is vital factor for awareness creation and saving calculation. In many industries sufficient meters may not be available to measure all the energy used. In such cases, invoices for fuels and electricity will be useful. The annual company balance sheet is the other sources where fuel cost and power are given with production related information. Energy invoices can be used for the following purposes: They provide a record of energy purchased in a given year, which gives a base-line for future reference Energy invoices may indicate the potential for savings when related to production requirements or to air conditioning requirements/space heating etc. When electricity is purchased on the basis of maximum demand tariff They can suggest where savings are most likely to be made. In later years invoices can be used to quantify the energy and cost savings made through energy conservation measures Fuel Costs A wide variety of fuels are available for thermal energy supply. Few are listed below: Fuel oil LSHS LDO LPG COAL LIGNITE WOOD ETC.Coal 18% Lignite 4%

LECO fine 30%

Power 36%

HSD 1%

Furnace Oil 11%

Total Energy Bill - Rs. 6 Crores/annum

Understanding fuel cost is fairly simple and it is purchased in Tons Figure 3.4:Annual energy bill or Kiloliters. Availability, cost and quality are the main three factors that should be considered while purchasing. The following factors should be taken into account during procurement of fuels for energy efficiency and economics. Price at source, transport charge, type of transport Quality of fuel (contaminations, moisture etc) Energy content (calorific value)


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Power Costs Electricity price in India not only varies from State to State, but also city to city and consumer to consumer though it does the same work everywhere. Many factors are involved in deciding final cost of purchased electricity such as: Maximum demand charges, kVA (i.e. How fast the electricity is used? ) Energy Charges, kWh (i.e., How much electricity is consumed? ) TOD Charges, Peak/Non-peak period (i.e. When electricity is utilized ?) Power factor Charge, P.F (i.e., Real power use versus Apparent power use factor ) Other incentives and penalties applied from time to time High tension tariff and low tension tariff rate changes Slab rate cost and its variation Type of tariff clause and rate for various categories such as commercial, residential, industrial, Government, agricultural, etc. Tariff rate for developed and underdeveloped area/States Tax holiday for new projects

Example: Purchased energy Bill A typical summary of energy purchased in an industry based on the invoicesTable 3.4

Type of energy Electricity Fuel oil Coal Total

Original units 5,00,000 kWh 200,kL 1000 tons

Unit Cost Rs.4.00/kWh Rs.10,000 kL Rs.2,000/ton

Monthly Bill Rs. 20,00,000 20,00,000 20,00,000 60,00,000

Unfortunately the different forms of energy are sold in different units e.g. kWh of electricity, liters of fuel oil, tonne of coal. To allow comparison of energy quantities these must be converted to a common unit of energy such as kWh, Giga joules, kCals etc. Electricity(1 kWh) = 860 kcal/kWh (0.0036 GJ) Heavy fuel oil (Gross calorific value, GCV) =10.000 kcal/litre ( 0.0411 GJ/litre) Coal (Gross calorific value, GCV) =4000 kcal/kg ( 28 GJ/ton)


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3.8 Benchmarking and Energy PerformanceBenchmarking of energy consumption internally (historical / trend analysis) and externally (across similar industries) are two powerful tools for performance assessment and logical evolution of avenues for improvement. Historical data well documented helps to bring out energy consumption and cost trends month-wise / day-wise. Trend analysis of energy consumption, cost, relevant production features, specific energy consumption, help to understand effects of capacity utilization on energy use efficiency and costs on a broader scale. External benchmarking relates to inter-unit comparison across a group of similar units. However, it would be important to ascertain similarities, as otherwise findings can be grossly misleading. Few comparative factors, which need to be looked into while benchmarking externally are: Scale of operation Vintage of technology Raw material specifications and quality Product specifications and quality

Benchmarking energy performance permits Quantification of fixed and variable energy consumption trends vis--vis production levels Comparison of the industry energy performance with respect to various production levels (capacity utilization) Identification of best practices (based on the external benchmarking data) Scope and margin available for energy consumption and cost reduction Basis for monitoring and target setting exercises.

The benchmark parameters can be: Gross production related e.g. kWh/MT clinker or cement produced (cement plant) e.g. kWh/kg yarn produced (Textile unit) e.g. kWh/MT, kcal/kg, paper produced (Paper plant) e.g. kcal/kWh Power produced (Heat rate of a power plant) e.g. Million kilocals/MT Urea or Ammonia (Fertilizer plant) e.g. kWh/MT of liquid metal output (in a foundry) Equipment / utility related e.g. kWh/ton of refrigeration (on Air conditioning plant) e.g. % thermal efficiency of a boiler plant e.g. % cooling tower effectiveness in a cooling tower e.g. kWh/NM3 of compressed air generated e.g. kWh /litre in a diesel power generation plant. 87



While such benchmarks are referred to, related crucial process parameters need mentioning for meaningful comparison among peers. For instance, in the above case: For a cement plant type of cement, blaine number (fineness) i.e. Portland and process used (wet/dry) are to be reported alongside kWh/MT figure. For a textile unit average count, type of yarn i.e. polyester/cotton, is to be reported along side kWh/square meter. For a paper plant paper type, raw material (recycling extent), GSM quality is some important factors to be reported along with kWh/MT, kcal/Kg figures. For a power plant / cogeneration plant plant % loading, condenser vacuum, inlet cooling water temperature, would be important factors to be mentioned alongside heat rate (kcal/kWh). For a fertilizer plant capacity utilization(%) and on-stream factor are two inputs worth comparing while mentioning specific energy consumption For a foundry unit melt output, furnace type, composition (mild steel, high carbon steel/cast iron etc.) raw material mix, number or power trips could be some useful operating parameters to be reported while mentioning specific energy consumption data. For an Air conditioning (A/c) plant Chilled water temperature level and refrigeration load (TR) are crucial for comparing kW/TR. For a boiler plant fuel quality, type, steam pressure, temperature, flow, are useful comparators alongside thermal efficiency and more importantly, whether thermal efficiency is on gross calorific value basis or net calorific value basis or whether the computation is by direct method or indirect heat loss method, may mean a lot in benchmarking exercise for meaningful comparison. Cooling tower effectiveness ambient air wet/dry bulb temperature, relative humidity, air and circulating water flows are required to be reported to make meaningful sense. Compressed air specific power consumption is to be compared at similar inlet air temperature and pressure of generation. Diesel power plant performance is to be compared at similar loading %, steady run condition etc.


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Plant Energy Performance Plant energy performance (PEP) is the measure of whether a plant is now using more or less energy to manufacture its products than it did in the past: a measure of how well the energy management programme is doing. It compares the change in energy consumption from one year to the other considering production output. Plant energy performance monitoring compares plant energy use at a reference year with the subsequent years to determine the improvement that has been made. However, a plant production output may vary from year to year and the output has a significant bearing on plant energy use. For a meaningful comparison, it is necessary to determine the energy that would have been required to produce this year production output, if the plant had operated in the same way as it did during the reference year. This calculated value can then be compared with the actual value to determine the improvement or deterioration that has taken place since the reference year. Production factor Production factor is used to determine the energy that would have been required to produce this years production output if the plant had operated in the same way as it did in the reference year. It is the ratio of production in the current year to that in the reference year. Production factor = Current years production Reference years production

Reference Year Equivalent Energy Use The reference years energy use that would have been used to produce the current years production output may be called the reference year energy use equivalent or reference year equivalent for short. The reference year equivalent is obtained by multiplying the reference year energy use by the production factor (obtained above) Reference year equivalent = Reference year energy use x Production factor

The improvement or deterioration from the reference year is called energy performance and is a measure of the plants energy management progress. It is the reduction or increase in the current years energy use over the reference, and is calculated by subtracting the current years energy use from the reference years equivalent. The result is divided by the reference year equivalent and multiplied by 100 to obtain a percentage. Plant energy performance = Reference year equivalent Current years energy x 100 Reference year equivalent The energy performance is the percentage of energy saved at the current rate of use compared to the reference year rate of use. The greater the improvement, the higher the number will be.


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Monthly Energy Performance Experience however, has shown that once a plant has started measuring yearly energy performance, management wants more frequent performance information in order to monitor and control energy use on an on-going basis. PEP can just as easily be used for monthly reporting as yearly reporting.

3.9

Matching Energy Usage to Requirement

Mismatch between equipment capacity and user requirement often leads to inefficiencies due to part load operations, wastages etc. Worst case design, is a designers characteristic, while optimization is the energy managers mandate and many situations present themselves towards an exercise involving graceful matching of energy equipment capacity to end-use needs. Some examples being: Eliminate throttling of a pump by impeller trimming, resizing pump, installing variable speed drives Eliminate damper operations in fans by impeller trimming, installing variable speed drives, pulley diameter modification for belt drives, fan resizing for better efficiency. Moderation of chilled water temperature for process chilling needs Recovery of energy lost in control valve pressure drops by back pressure/turbine adoption Adoption of task lighting in place of less effective area lighting

3.10 Maximising System EfficiencyOnce the energy usage and sources are matched properly, the next step is to operate the equipment efficiently through best practices in operation and maintenance as well as judicious technology adoption. Some illustrations in this context are: Eliminate steam leakages by trap improvements Maximise condensate recovery Adopt combustion controls for maximizing combustion efficiency Replace pumps, fans, air compressors, refrigeration compressors, boilers, furnaces, heaters and other energy conservation equipment, wherever significant energy efficiency margins exist.


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Optimising the Input Energy Requirements Consequent upon fine-tuning the energy use practices, attention is accorded to considerations for minimizing energy input requirements. The range of measures could include: Shuffling of compressors to match needs. Periodic review of insulation thickness Identify potential for heat exchanger networking and process integration. Optimisation of transformer operation with respect to load.

3.11 Fuel and Energy SubstitutionFuel substitution: Substituting existing fossil fuel with more efficient and less cost/less polluting fuel such as natural gas, biogas and locally available agro-residues. Energy is an important input in the production. There are two ways to reduce energy dependency; energy conservation and substitution. Fuel substitution has taken place in all the major sectors of the Indian economy. Kerosene and Liquefied Petroleum Gas (LPG) have substituted soft coke in residential use. Few examples of fuel substitution Natural gas is increasingly the fuel of choice as fuel and feedstock in the fertilizer, petrochemicals, power and sponge iron industries. Replacement of coal by coconut shells, rice husk etc. Replacement of LDO by LSHS Few examples of energy substitution Replacement of electric heaters by steam heaters Replacement of steam based hotwater by solar systems


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Case Study : Example on Fuel Substitution A textile process industry replaced old fuel oil fired thermic fluid heater with agro fuel fired heater. The economics of the project are given below: A: Title of Recommendation B: Description of Existing System and its operation C: Description of Proposed system and its operation D: Energy Saving Calculations Old System Type of fuel Firing GCV Avg. Thermal Efficiency Heat Duty Operating Hours Annual Fuel Cost Modified System Type of fuel saving GCV Average Thermal Efficiency Heat Duty Annual Operating Cost Annual Savings Additional Auxiliary Power + Manpower Cost Net Annual Saving Investment for New Coconut Fired heater Simple pay back period : Furnace Oil fired heater : 10,200 kcal/kg : 82% : 15 lakh kcal / hour : 25 days x 12 month x 24 hours = 7,200 hrs. : 130 lakh (7200 x 1800 Rs./hr.) = Coconut chips fired Heater = 4200 kcal/kg = 72 % = 15 lakh kcal / hour = 7200 x 700 Rs./hr = 50 lakh = 130 - (50) = Rs.80 lakh . = Rs. 10 lakh = Rs. 70lakh = Rs.35 lakh = 6 months : : : Use of Agro Fuel (coconut chips) in place of Furnace oil in a Boiler A thermic fluid heater with furnace oil currently. In the same plant a coconut chip fired boiler is operating continuously with good performance. It was suggested to replace the oil fired thermic fluid heater with coconut chip fired boiler as the company has the facilities for handling coconut chip fired system.


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3.12 Energy Audit InstrumentsThe requirement for an energy audit such as identification and quantification of energy necessitates measurements; these measurements require the use of instruments. These instruments must be portable, durable, easy to operate and relatively inexpensive. The parameters generally monitored during energy audit may include the following: Basic Electrical Parameters in AC &DC systems Voltage (V), Current (I), Power factor, Active power (kW), apparent power (demand) (kVA), Reactive power (kVAr), Energy consumption (kWh), Frequency (Hz), Harmonics, etc. Parameters of importance other than electrical such as temperature & heat flow, radiation, air and gas flow, liquid flow, RPM, air velocity, noise and vibration, dust concentration, TDS, PH, moisture content, relative humidity, flue gas analysis CO2, O2, CO, SOx, NOx, combustion efficiency etc. Key instruments for energy audit are listed below. The operating instructions for all instruments must be understood and staff should familiarize themselves with the instruments and their operation prior to actual audit use. Electrical Measuring Instruments: These are instruments for measuring major electrical parameters such as kVA, kW, PF, Hertz, kVAr, Amps and Volts. In addition some of these instruments also measure harmonics. These instruments are applied on-line i.e on running motors without any need to stop the motor. Instant measurements can be taken with hand-held meters, while more advanced ones facilitates cumulative readings with print outs at specified intervals. Combustion analyzer: This instrument has in-built chemical cells which measure various gases such as O2, CO, NOX and SOX.


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Fuel Efficiency Monitor: This measures oxygen and temperature of the flue gas. Calorific values of common fuels are fed into the microprocessor which calculates the combustion efficiency.

Fyrite: A hand bellow pump draws the flue gas sample into the solution inside the fyrite. A chemical reaction changes the liquid volume revealing the amount of gas. A separate fyrite can be used for O2 and CO2 measurement.

Contact thermometer: These are thermocouples which measures for example flue gas, hot air, hot water temperatures by insertion of probe into the stream. For surface temperature, a leaf type probe is used with the same instrument. Infrared Thermometer: This is a non-contact type measurement which when directed at a heat source directly gives the temperature read out. This instrument is useful for measuring hot spots in furnaces, surface temperatures etc.


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Pitot Tube and manometer: Air velocity in ducts can be measured using a pitot tube and inclined manometer for further calculation of flows.

Water flow meter: This non-contact flow measuring device using Doppler effect / Ultra sonic principle. There is a transmitter and receiver which are positioned on opposite sides of the pipe. The meter directly gives the flow. Water and other fluid flows can be easily measured with this meter. Speed Measurements: In any audit exercise speed measurements are critical as thay may change with frequency, belt slip and loading. A simple tachometer is a contact type instrument which can be used where direct access is possible. More sophisticated and safer ones are non contact instruments such as stroboscopes. Tachometer Stroboscope


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Leak Detectors: Ultrasonic instruments are available which can be used to detect leaks of compressed air and other gases which are normally not possible to detect with human abilities.

Lux meters: Illumination levels are measured with a lux meter. It consists of a photo cell which senses the light output, converts to electrical impulses which are calibrated as lux.


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QUESTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. List down the objective of energy management? What are the managerial functions involved in energy management? Explain why managerial skills are as important as technical skills in energy management? What are the various steps in the implementation of energy management in an organization? State the importance of energy policy for industries? Explain the role of training and awareness in energy management programme? What is an energy audit? Explain briefly the difference between preliminary and detailed energy audits? What is the significance of knowing the energy costs? What are the benefits of benchmarking energy consumption? Explain the implications of part load operation of energy equipment with examples? What do you understand by the term fuel substitution? Give examples. What are the parameters that can be measured by on line power analyser? Name the one instrument used to measure CO2 from boilers stack is (a) Infrared thermometer (b) Fyrite (c) Anemometer (d) Pitot tube Non contact flow measurement can be carried out by (a) Orifice meter (b) Turbine flow meter (c) Ultrasonic flow meter (d) Magnetic flow meter Non contact speed measurements can be carried out by (a) Tachometer (b) Stroboscope (c) Oscilloscope (d) Odometer

REFERENCES 1. 2. 3. 4. NPC energy audit manual and reports Energy management handbook, John Wiley and Sons - Wayne C. Turner Guide to Energy Management, Cape Hart, Turner and Kennedy Cleaner Production Energy Efficiency Manual for GERIAP, UNEP, Bangkok prepared by National Productivity Council www.eeca.govt.nz www.energyusernews.com/


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1.3 energy management & audit

Documents

energy consumption

sources of energy

energy savings

energy monitoring

review of energy

energy performance

energy substitution

energy managers