The document outlines the process for conducting an energy audit. It discusses initiating an energy management program, analyzing energy bills, conducting an on-site audit by examining various systems and equipment, and developing an energy audit report that identifies energy management opportunities and recommends cost-effective solutions to reduce energy usage and costs. The goal of an energy audit is to understand current energy usage and identify ways to use energy more efficiently.

1. Conducting An Energy Audit

2. What is Energy Audit Energy Audit is a periodic examination of an energy system to ensure that energy is being used as efficiently as possible. Energy audit is a top-down initiative Its result depends on the resources being allocated by top management. In many ways, an energy audit is similar to financial accounting and auditing.

3. Advantages of Energy Audit Through energy audit, you can: Promote awareness in energy efficiency Identify the cost of energy you use Identify and minimize wastage Making changes to procedure, equipment and system to save energy Retrofit energy efficiency technologies Conserve non-renewable energy resources Protect the environment by reducing power generation Reduce running costs

4. Conducting An Energy Audit OUTLINE Initiating an Energy Management Program Goals of the Energy Audit Energy Bills Steps in the On-Site Energy Audit Degree Days, Layout, Operating Hours Equipment List Systems to Consider Energy Audit Report

5. Initiating an Energy Management Program Designate an energy manager or an energy management team. Make sure energy manager or team have support of top management of the company and the specific facility Essential to get cooperation from the maintenance and operating personnel

6. Management Support Needed Support for the data collection necessary to determine - how energy is used in the facility - how much it costs - how improvements could be made

7. A Difficult Problem for an Energy Manager Trying to reduce energy costs for a facility when these costs are accounted for as part of general overhead Why? Individual managers and supervisors do not consider themselves responsible for controlling the energy costs. Why not? Individual managers or supervisors do not get any direct benefit from reducing costs that are part of total company overhead

8. Best Solution to this Problem Top management should allocate energy costs down to “ cost centers ” in the company or the facility If energy costs are charged to production centers just like materials and labor then managers have a direct incentive to control energy costs to improve the overall cost effectiveness of the production center. 10% bonus if goal is met Employee feels they are considered

9. Goals of the Energy Audit are to: Clearly identify types and costs of energy use Understand how that energy is being used and possibly wasted Identify and analyze more cost-effective ways of using energy - improved operational techniques - new equipment Perform an economic analysis on those alternatives and determine which are cost-effective for your business or industry $$$$$

10. Analysis of Bills The audit must begin with a detailed analysis of the energy bills for the previous twelve months. This is important because: The bills show the proportionate use of each different energy source when compared to the total energy bill, An examination of where energy is used can point out previously unknown energy wastes, and The total amount spent on energy puts an obvious upper limit on the amount that can be saved.

11. A complete analysis of the energy bills for a facility requires a detailed knowledge of the rate structures in effect for the facility. To accurately determine the costs of operating individual pieces of equipment, break energy bills down to their components. e.g. demand charge and energy charges for the electric bill. This breakdown also allows more accurate savings calculations for Energy Management Opportunities (EMO’s) such as: high-efficiency equipment, rescheduling of some on-peak electrical uses, etc.

12. * This cost includes all applicable taxes. ELECTRIC ENERGY USAGE AND COSTS FOR May 2004 to April 2005 Month Energy Consumed kWh Energy Cost ($) Total Demand kW Demand Cost $ Tax on Electricity ($) Total Cost $ May-04 175,600 9,110 604 3,926 1,856 14,892 Jun-04 182,800 9,482 628 4,082 1,931 15,495 Jul-04 188,400 9,806 664 4,316 2,010 16,132 Aug-04 186,800 9,734 664 4,316 1,999 16,049 Sep-04 206,800 10,610 652 4,238 2,116 16,964 Oct-04 185,600 9,672 660 4,290 1,987 15,949 Nov-04 179,600 9,394 656 4,264 1,943 15,601 Dec-04 165,600 8,588 568 3,692 1,749 14,029 Jan-05 142,800 7,568 584 3,796 1,616 12,980 Feb-05 165,400 8,630 600 3,900 1,783 14,314 Mar-05 188,000 9,692 616 4,004 1,951 15,647 Apr-05 206,400 11,326 632 4,108 2,157 17,591 Totals 2,173,800 113,612 7,528 48,932 23,099 185,644 Averages 181,150 9,468 627 4,078 1,925 15,470 Average cost per kW per month = $7.42/kW/month Average cost of energy without demand = $0.060/kWh Average cost of energy including demand = $0.085/kWh

13. May 2004 - April 2005

14. Steps in the On-site Energy Audit 1. Identify layout and operating schedule for facility. Make a plan or sketch of the building(s) which shows building size, room sizes, window areas, and wall and roof composition and insulation (offices, prod, maint,…) 2. Compile an equipment inventory. List all energy consuming equipment, with hours of use each year and energy ratings or efficiencies.

15. Determine the pattern of building use to show annual needs for heating, cooling, & lighting. 4. Conduct a room-by room lighting inventory - light fixtures - lamp types, sizes and numbers - levels of illumination - uses of task lighting Steps in the On-site Energy Audit

16. Energy Balance for a Facility Electricity 2,432,501 kWh Natural Gas 329,863 therms Facility Lighting 130,560 kWh Boiler 329,863 therms Electric Heaters 100,100 kWh Motors 1,516,619 kWh Miscellaneous 260,000 kWh HVAC 34,286 kWh Compressors 116,376 kWh Chillers 274,560 kWh Total: 2,432,501 kWh/yr

17. Demand Balance for a Facility Electricity 330 kW Facility Lighting 18 kW Boiler 329,863 therms Electric Heaters 13.5 kW Motors 197.1 kW Miscellaneous 35 kW HVAC 17.1 kW Compressors 14.9 kW Chillers 34.3 kW Total: 329.9 kW

18. Geographic Location/ Degree Days/ Weather Data Geographic location of facility and weather data for that location are important. Obtain average degree days for heating and cooling for that location for the past twelve months from: - local weather station, - local utility, or - state energy office Degree-day data is very useful in analyzing energy needed to heat or cool facility.

19. Heating Degree Days (HDD) and Cooling Degree Days (CDD), are separate values and are specific to a particular geographic location. DD assumptions: the average building has a desired indoor temperature of 70  F 5  F of this is supplied by internal heat sources such as lights, appliances, equipment, and people.

20. Facility Layout Obtain the facility Layout or plan and review it to determine: - facility size, - floor plan, - construction features (wall & roof material, insulation levels, door & window sizes and construction)

21. Facility Layout (cont’d) Obtain operating hours for facility - How many shifts does the facility run ? - Is there only a single shift ?, Two, Three ? Knowing the operation hours in advance gives some indication as to whether any loads could be shifted to off-peak times. Example: Produce Ice at night – Cooling @ On-Peak

22. Equipment List Get Equipment list for facility and review it before conducting audit. Identify all large pieces of energy consuming equipment such as: heaters, AC, water heaters, and specific process-related equipment Equipment list and data on operational uses of equipment provide understanding major energy-consuming tasks or equipment at facility

23. Nine Major Systems to Consider Building Envelope HVAC (heating, ventilating and air-conditioning) System Electrical Supply System Lighting Boiler and Steam System Hot Water System Compressed Air System Motors Special Purpose Process Equipment

24. As you examine each system, ask: What function(s) does this system serve ? How does this system serve its function(s) ? What is the energy consumption of this system? What are the indications that this system is probably working properly ?

25. 5. If this system is not working, how can it be restored to good working condition ? 6. How can the energy cost of this system be reduced ? 7. How should this system be maintained ? Who has direct responsibility for maintaining and improving the operation and energy efficiency of this system ?

26. Preliminary Identification of Energy Management Opportunities (EMO’s) During the on-site audit, take notes on potential EMO’s that are evident. In general, devote the greatest effort to analyzing and implementing the EMO’s which show the greatest savings, and the least effort to those with the smallest savings potential. Identifying EMO’s requires a good knowledge of energy efficiency technologies available to do the same job with less energy and cost.

27. The Energy Audit Report The energy audit report details the final results of the energy analyses and provides energy cost saving recommendations. The length and detail of this report will vary depending on the type of facility audited A residential audit may result in a computer printout from the utility An industrial audit should have a detailed explanation of the EMO’s and benefit-cost analyses.

28. Energy Audit Report Format Executive Summary Brief summary of recommendations and cost savings Table of Contents Introduction - Purpose of the energy audit - Need for a continuing energy cost control program

29. Facility Description Product or service, and materials flow Size, construction, facility layout, and hours of operation, Equipment list, with specifications Energy Bill Analysis Utility rate structures Tables/graphs of energy consumptions and costs Discussion of energy costs and energy bills Energy Management Opportunities Listing of potential EMO’s Cost and savings analysis Economic evaluation

30. Energy Action Plan Recommended EMO’s and an implementation schedule Designation of an energy monitor and ongoing program Conclusion Additional comments not otherwise covered