Introduction to energy audit by vikas kumar pathak


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Introduction to energy audit by vikas kumar pathak

  2. 2. AUDIT  It is an evaluation of a person, organization, system process, enterprise, project or product. It includes quality management , water management, and energy conservation. 2 2/21/2014
  3. 3. AUDITING  It is defined as a systematic and independent examination of data statements , records , operations, and performance of an enterprise for a purpose. 3 2/21/2014
  4. 4. ENERGY AUDITS  Energy audits can be defined as the first steps towards understanding how energy is being used in given facility . Energy audit is a systematic study or survey to identify how energy is being used in a building or plant, and identifies energy savings opportunities. Energy audits do not provide the final answer to problems . But it is helpful to identify the improvement. In India 48% of the total commercial energy consumption. 4 2/21/2014
  5. 5. STAGES OF ENERGY AUDITS 5 2/21/2014
  6. 6. NEED OF ENERGY AUDITS  Minimizing energy wastage.  Optimizing energy efficiency with suitable technology.  Using the most appropriate energy resources (for examples electricity , fossil fuels, and renewable), with due to regards to environmental benefits.  Buying energy at most economical price. 6 2/21/2014
  7. 7. NEED OF ENERGY AUDITS  Modifying operations , whenever feasible, to make the use of energy price structures.  Involvement , training , and raising awareness of staff.  Continuous monitoring to ensure that energy use remains within predetermined limits. 7 2/21/2014
  8. 8. ENERGY AUDITOR  Energy auditor who will be allowed to conduct the mandatory audit under the energy conservation act 2001.  Responsibilities and duties of accredited energy auditor are highlighted below: Carryout a detailed energy audit.  Quantify energy consumption and establish base line energy information. 8 2/21/2014
  9. 9. ENERGY AUDITOR  Construct energy and material balance.  Perform efficiency evaluation of energy & utility system.  Compare energy norms with existing energy consumption level.  Identify and prioritizations of energy saving norms.  Analyse technical and financial feasibility of energy saving measures. 9 2/21/2014
  10. 10. ENERGY AUDITOR  Recommend energy efficient technologies and alternate energy sources.  Report writing , presentation and follow up the implementation. 10 2/21/2014
  11. 11. ENERGY MANAGERS  Certified energy manager is a professional certification issued by the association of energy engineer.  Professional becomes eligible for this certification after demonstrating expertise in several areas ranging from standard, air quality energy audits, lighting , procurement and even financing. 11 2/21/2014
  12. 12. WORKING AREA OF ENERGY MANAGERS  Codes and standards and indoor air quality.  Energy accounting and economics.  Energy audits and instrumentation.  Alternative finance  Boiler and steam systems.  Building automation and control system.  Building envelope.  C HP Systems and renewable energy. 12 2/21/2014
  13. 13. WORKING AREA OF ENERGY MANAGERS  Electrical system.  Energy procurement.  Green building, LEED and Energy star.  HVAC system.  Industrial system.  Maintain and commissioning.  Motor and drives.  Thermal energy storage systems.  Lighting systems. 13 2/21/2014
  14. 14. ENERGY AUDITING FOR INDUSTRIES                 14 The following sectors have been identified as energy intensive industries, and other establishments as designated consumers. Aluminium Fertilizers Iron and steel Cement Pulp and paper Chlor-alkali Sugar Textile Chemicals Railways Port trust Transport sectors ( industries and services) Petrochemicals, gas crackers, naphtha crackers and petroleum refineries Thermal power generation , hydro power generation , and electricity transmission distribution Commercial buildings and establishment s 2/21/2014
  15. 15. ENERGY AUDITING FOR INDUSTRIES  Among the above industries , the units having a connected load of 5 MW (mega watts) and above or an energy consumption of about 30,000 tonnes of oil equivalent per year, would be notified.  For commercial building , these values are a connected load of 500 KW (kilo watts) or contract demand of 600 kVA (kilovolt ampere) and above.  These industrial units would have to get energy audits conducted by accredited auditors , and implement the recommendations, , which are techno- economically viable. 15 2/21/2014
  16. 16. Benefits of energy audit for energy savings potentials in industries:INDUSTRY Saving Potential % Iron and Steel Fertilizer 15 Textile 25 Cement 15 Paper 25 Aluminum 16 10 10 Sugar, Petrochemicals Refineries 20 15 10 2/21/2014
  17. 17. Potential for Energy Conservation – Commercial Sector:Saving estimate % End-Use Lighting Cooling Up to 50 Ventilation 50 Heating 15 - 40 Refrigeration 15 - 40 Water Heating 17 Up to 50 40 - 60 Miscellaneous 10 - 30 2/21/2014
  18. 18. Potential for Energy Conservation – Residential Sector:End Use Lighting 20 - 50 Cooling / Ventilation 15 -50 Refrigeration 15 - 40 Water heating equipment 20 -70 Miscellaneous Equipment 18 Saving estimate % 10 2/21/2014
  19. 19. Areas covered under Electrical audit are: Electrical System :  • Electrical Distribution system (substation & feeders         19 study) • PF Improvement study • Capacitor performance • Transformer optimization • Cable sizing & loss reduction • Motor loading survey • Lighting system • Electrical heating & melting furnaces • Electric ovens 2/21/2014
  20. 20. Areas covered under Mechanical audit are : Mechanical System :  • Fans & Blowers  • Exhaust & ventilation System  • Pumps and pumping System  • Compressed air System  • Air Conditioning & Refrigeration System  • Cooling Tower System 20 2/21/2014
  21. 21. Areas covered under Thermal energy audit are : Thermal energy system :- • Steam Generation Boilers  • Steam Audit and Conversation  • Steam Trap Survey  • Condensate Recovery System  • Insulation Survey  • Energy and Material Balance for Unit operation  • Heat Exchanger  • Waste Heat Recovery System 21 2/21/2014
  22. 22. Focus of Govt. Of india through energy audit on energy conservation and energy efficient technologies and products : BEE (Bureau of energy efficiency ) has done tremendous work in creating awareness on energy conservation , establishing case studies for different industries , promoting innovative financing mechanisms for energy efficiency projects , energy labelling , accrediting organizations for energy audits , and conducting examinations for accrediting the energy auditors and energy managers. 22 2/21/2014
  23. 23. Focus of Govt. Of india through energy audit on energy conservation and energy efficient technologies and products : CPRI (central power research institute) has been     23 carrying out energy audit & energy conservation studies since 1988 and have completed energy audit in:75 power stations 70 energy intensive industries 60 majors buildings 10 ports 2/21/2014
  24. 24. Focus of Govt. Of india through energy audit on energy conservation and energy efficient technologies and products :-  The govt. Efforts for energy conservation are also supplemented by the NPC ( national productivity council), NGOs like TERI ( the energy resources institute), and industries associations such as ASSOCHAM , CII , FICCI and PHDCCI. 24 2/21/2014
  25. 25. TYPES OF ENERGY AUDIT  Energy audit can be categorized into two types, namely walk-through or preliminary and detail audit.  Walk-through or preliminary audit  Detailed Energy audit 25 2/21/2014
  26. 26. Walk-through or preliminary audit  Walk-through or preliminary audit comprises one day or half-day visit to a plant and the output is a simple report based on observation and historical data provided during the visit. The findings will be a general comment based on rule-of-thumbs, energy best practices or the manufacturer's data.  This audit can be divided into three steps : Step1 :- identifies the quantity and cost of various energy forms used in the plant .  Step 2:-identifies energy consumption at the department /process level.  Step3 :- relates energy inputs to production ( output),there by highlighting energy wastage in major equipment /processes. 26 2/21/2014
  27. 27. Detail energy audit or general energy audit  Detail audit is carried out for the energy savings proposal recommended in walk-through or preliminary audit. It will provide technical solution options and economic analysis for the factory management to decide project implementation or priority. A feasibility study will be required to determine the viability of each option.  Under this audit are focused on energy saving , energy balance of major energy consuming equipment, replacement proposals. The duration of this audit for study a project / plant lies between 3 months to a year. 27 2/21/2014
  28. 28. Energy Services Companies (ESCOS)  Energy services companies (ESCOs) are single point providers     28 of energy solutions to the industry. ESCOs are to carry out energy audits, identify the feasible options for saving energy, arrange finance and implement energy efficiency projects. This would help understand energy needs of industrial clients and come up with solutions that can be implemented without the clients incurring production losses. Therefore ESCOs allow clients to minimize financial risks associated with energy efficiency projects. However, the growth of ESCOs has not taken off in India, primarily because industries are wary of fly-by-night operators who are only keen to maximize their profits without sufficient dedication to services they would provide. While for ESCOs problems of establishing baselines would make risks associated with energy efficiency projects high. 2/21/2014
  29. 29. Internal audit  Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.  Internal auditors work for government agencies (federal, state and local); for publicly traded companies; and for non-profit companies across all industries. Internal auditing departments are led by a Chief Audit Executive ("CAE") who generally reports to the Audit Committee of the Board of Directors. 29 2/21/2014
  30. 30. External (Statutory) Audit o All companies registered in India are required to 30 get their Financial Statements audited by Chartered Accountants under the Indian Companies Act. o These audits are undertaken in accordance with the Indian Accounting Standards and guidelines issued from time to time by the Institute of Chartered Accountants of India. o Additionally, Companies which have a turnover over a specified amount are also required to have their records audited by Chartered Accountants under the Indian Income Tax Act. 2/21/2014
  31. 31. External vs. Internal Auditing  External auditing is often called independent auditing because it is done by certified public accountants who are independent of the organization being audited.  External auditors represent the interests of third-party stakeholders in the organization, such as stockholders, creditors, and government agencies.  Because the focus of external audit is on financial statements, this type of audit is called financial audit  Institute of Internal Auditors defines internal auditing as an independent appraisal function established within an organization to examine and evaluate its activities 31 2/21/2014
  32. 32. External vs. Internal Auditing  Internal auditors perform a wide range of activities on behalf of the organization, including conducting financial audits, examining an operation’s compliance with organizational policies, reviewing the organization’s compliance with legal obligations, evaluating operational efficiency, detecting and pursuing fraud within the firm, and conducting IT audits.  While external auditors represent outsiders, internal 32 auditors represent the interests of the organization.  Internal auditors often cooperate with and assist external auditors in performing financial audits.  This is done to achieve audit efficiency and reduce audit fees. For example, a team of internal auditors can perform tests of computer controls under the supervision of a2/21/2014 single external auditor.
  33. 33. Information Technology (IT) Audit  Focus on the computer-based aspects of an organization’s information system  This includes assessing the proper implementation, operation, and control of computer resources 33 2/21/2014
  34. 34. Investment grade energy audit (IGEA )  It is a process of accounting & analyzing the present 34 energy consumption to identify potential energy saving possibilities through implementation and adoption of specific energy efficient methods, measures and technologies.  Objective of IGEA :- The main objective of the investment grade energy audit is to review the present energy consumption scenario, monitoring and analysis of use of energy and explore the energy consumption options in various load centres of the building including submission of a detailed project report containing recommendations for improving energy efficiency with cost benefit analysis . Under a BEE funded project IGEA of 26 selected government office buildings and establishments have been 2/21/2014 conducted in last 2 years.
  35. 35. Industrial energy audit  Industrial energy audit have exploded as the       35 demand to lower increasingly expensive energy costs and moves towards a sustainable future have made energy audits greatly improvement . Area under the industrial energy audit :Comprehensive audits of all sectors of industries:Energy (electrical & thermal) Water Electrical safety Capacity building 2/21/2014
  36. 36. Benefits of industrial energy audit  Energy savings  Avoiding power factor penalties and       36 environmental compliance cost Quality improvement Productivity improvement Reduced maintains Fewer breakdown Better safety and protection A process for repeatable improvement 2/21/2014
  37. 37. Utility (services) energy audit  Industry research indicates that 6-10 % of utility bills     37 have errors that can amount of millions of dollors in unnecessary expenses. Companies are challenged to avoid these costly billing mistakes across facilities serviced by various utility companies , identifying and corresponding errors can yield immediate savings. Benefits of bill auditing services:Comprehensive analysis that establishes bare lines and identifies overbillings. On going monitoring of billing to avoid costly errors. Communication with client on a regular basis , outlining progress to update and up coming activities. 2/21/2014
  38. 38. ISO standards for energy audit  Iso 9001 : 2008 – quality management system  Iso 14001 :2004 – environmental management      38 systems OHSAS 18001 – Occupational health and safety management systems Iso 22000 – food safety Iso TS/16949 :2002 – quality management system for design and development , production. Iso 50001 – energy management Iso 50001 :2011 – energy management system 2/21/2014
  39. 39. Commercial Energy Audit  The term energy audit appears to refer to two distinct things: An energy audit is the process of having a professional energy auditor assess your building for energy savings opportunities.  . The term energy audit also is used to refer to the result of the energy assessment process, the energy audit report. We will try to keep these terms separate by referring to the report as an “energy audit report.”  A commercial energy audit is a comprehensive building analysis performed by a professional architecture or engineering firm. The firm audits the entire building to determine machines that use energy (like lighting, boilers, AC units, water heaters, etc.) and any installed measures working to conserve it (like the insulation, air sealing, and windows). The audit usually takes between 2-4 weeks to complete 39 2/21/2014
  40. 40. HOME OR RESIDENTIAL ENERGY AUDIT  A home energy audit (or survey) evaluates an existing       40  home to determine where and how energy is being lost, what systems are operating inefficiently and what costeffective improvements can be implemented to enhance occupant comfort, make the home more durable and lower utility costs Area includes under residential energy audit :Building envelope features (windows, doors, insulation, ducts) and ages Heating, cooling and ventilation equipment types, characteristics and ages Appliance and lighting characteristics Comfort complaints Visible moisture issues Visible health and safety issues 2/21/2014
  41. 41. Keep smiling Thank you for your great support Dreams never die ,always alive yourself to complete them. 41 2/21/2014