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E3-E4 Technical (Electrical)

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Chapter-2

Energy Management
Energy Management

Y K Sharma, SDE(BS-E), 9412739241(M) E-Mail ID: yogeshsharma@bsnl.co.in

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Introduction:

Energy Management

The fundamental goal of energy management is to produce goods and provide services with the least cost and least environmental effect. One definition of energy management is: “The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions” 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.

Concept of Energy Management Energy management Strategy Energy Auditing
Concept of Energy Management
Energy management Strategy
Energy Auditing

Objectives:

At the end of this lesson, participants will be able to understand:

Principles of Energy Management:

The principles of Energy Management involve the following:

i) Procure all the energy needed at the lowest possible

ii) Manage energy use at the highest energy efficiency

iii) Reusing and recycling energy by cascading

iv) Use the most appropriate technology

v) Reduce the avoidable losses.

Within these principles lies a complex matrix of knowledge and skill requirements. For example, managing energy use at the highest energy efficiency can involve activities ranging from auditing, to specifying retrofit measures and analyzing the resulting return on investment, to monitoring and targeting, to conducting employee and tenant awareness educational programs, and more. The energy manager typically will have responsibility for advising senior management on energy reduction strategies, for gaining commitment throughout the organization, for managing the implementation of measures, and for dealing effectively with contractors and energy suppliers.

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Energy Management Strategy:

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Energy management should be seen as a continuous process. Strategies should be reviewed annually and revised as necessary. The key activities 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

and staffing resources must be allocated, and reporting Set up an Energy Monitoring and Reporting System

Set up an Energy Monitoring and Reporting System

procedures initiated. An energy management program requires commitment from the whole organisation in order to be successful.

2.

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

Appoint Energy Manager

managers need to have a technical background, need to be familiar with the organisation‟s activities and have appropriate technical support.

3.

Successful energy management requires the establishment of a system to collect, analyse and report on the organisation‟s 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 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 of 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, timetables, budgetary limits and Organisation of management resources.

6. Prepare and Undertake a Detailed Project Implementation Plan

A project implementation plan should be developed as part of the energy audit and be
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.
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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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.

and pursuing comprehensive energy management programme. As per the Energy Conservation Act, 2001, Energy Audit is

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:

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 primary objective of Energy Audit is to determine ways to reduce energy consumption per unit of product output or to lower operating costs. Energy Audit provides a “ bench-mark” (Reference Point) for managing energy in the organization and also provides the basis for planning a more effective use of energy throughout the organization.

Type of Energy Audit

The type of Energy Audit to be performed depends on:

Function and type of industryAudit The type of Energy Audit to be performed depends on: Depth to which final audit

Depth to which final audit is needed, andto be performed depends on: Function and type of industry © B S N L ,

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Potential and magnitude of cost reduction desiredE3-E4 Technical (Electrical) Rev date: nil Thus Energy Audit can be classified into the following two

Thus Energy Audit can be classified into the following two types.

Preliminary AuditEnergy Audit can be classified into the following two types. Detailed Audit Preliminary Energy Audit Methodology:

Detailed Auditclassified into the following two types. Preliminary Audit Preliminary Energy Audit Methodology: Preliminary energy

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
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

Detailed Energy Audit Methodology:

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.

comprehensive audit provides a detailed energy project implementation plan for a

In

an

calculations of energy use. This estimated use is then compared to utility bill charges.

a comprehensive audit, one of the key elements is the energy balance. This is based on

inventory of energy using systems, assumptions of current operating conditions and

Detailed energy auditing is carried out in three phases: Phase I, II and III.

Phase I

Phase II - Audit Phase Phase III - Post Audit Phase

- Pre Audit Phase

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Ten Steps Methodology for Detailed Energy Audit

Step

No

PLAN OF ACTION

PURPOSE

/ RESULTS

Step 1

Plan and organise Walk through Audit Informal Interview with Energy Manager, Production / Plant Manager
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.)
Phase II –Audit Phase
Primary data gathering, Process
Flow Diagram, & Energy Utility
Diagram

Step 2

Building up cooperation Issue questionnaire for each department Orientation, awareness creation

Step 3

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)

Phase I Pre Audit Phase

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

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Conduct survey and monitoring Step 4 Measurements : Motor survey, Insulation, and Lighting survey with
Conduct survey and monitoring
Step 4
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.).
Conduct of detailed trials
/experiments
for
selected
Load
variations
trends
in
pumps,
fan
Step 5
energy guzzlers
compressors etc.
Equipments Performance experiments etc
Analysis of energy use
Energy
and
Material
balance
&
energy
Step6
loss/waste analysis
Step 7
Identification and development
of Energy Conservation
(ENCON) opportunities
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

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Cost benefit analysis

Step 8

Assess technical feasibility, economic viability and prioritization of ENCON options for implementation Select the most promising projects Prioritise by low, medium, long term measures

Reporting & Presentation to the Top Management Phase III –Post Audit phase Implementation and Follow-up
Reporting & Presentation to the
Top Management
Phase III –Post Audit phase
Implementation and Follow-up

Documentation, Report Presentation to the top Management.

Step9

Step10

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

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Energy Management system:

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Energy Management- Barriers in Implementation The main barriers in implementation of Energy management programs
Energy Management- Barriers in Implementation
The
main
barriers
in
implementation
of
Energy
management
programs
in
the
organization are:

Managerial Barriers

Energy management is side-lined as a technical specialtyprograms in the organization are: Managerial Barriers Line management is inadequate There is insufficient interest

Line management is inadequateEnergy management is side-lined as a technical specialty There is insufficient interest and driving force from

There is insufficient interest and driving force from aboveas a technical specialty Line management is inadequate There is little incentive for departmental managers and

There is little incentive for departmental managers and general staff to save energy.There is insufficient interest and driving force from above © B S N L , I

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Lack of senior management commitmentE3-E4 Technical (Electrical) Rev date: nil Senior management unaware of potential savings Higher priority given t

Senior management unaware of potential savingsRev date: nil Lack of senior management commitment Higher priority given t o “more important” issues

Higher priority given to “more important” issues o “more important” issues

It is seen as an overhead costHigher priority given t o “more important” issues Energy is consumed by a large number of

Energy is consumed by a large number of userso “more important” issues It is seen as an overhead cost Users are unaware of energy

Users are unaware of energy use and costsoverhead cost Energy is consumed by a large number of users Technical Getting accurate data on

Technical

of users Users are unaware of energy use and costs Technical Getting accurate data on time

Getting accurate data on time is a key problem Monitoring and targeting is not integrated with financial accounting Output is not reported to either users or senior managers in a form they can readily understand and use. Users have no information on how to make savings

Energy Management Issues involved in Implementation:

Four vital requirements for a successful energy management Total support of top management Strategy plan, An effective monitoring system Technical ability

Various issues involved in implementation of Energy management programs in the organization are:

Top Management Support

The decision of company management to control energy costs is a vital first step. This must be clearly stated and understood by all within the company. Senior management should participate in energy committee meetings or in other energy related activities.

One of the roles of the top management is to publish a formal statement of its energy policy, which can be used to define company activities in energy matters for its employees. It can also serve to inform the general public about the company commitment to energy efficiency.

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Finally, an important part of top management commitment is to empower those given responsibility for implementing the energy management programme. The evidence of top management commitment will be seen in the level of support given to the Energy manager, especially such resources as manpower, budget etc.

Planning Planning of an energy management strategy needs to be carried out at various levels within an organization.

to be carried out at various levels within an organization. At the corporate level, a favorable

At the corporate level, a favorable climate should be created which will facilitate planning at other levels in the organization. At this level, planning will provide overall direction in setting targets.

These targets should be specific, verifiable and attainable. These objectives should be communicated clearly throughout the whole organization.

Accountability

Periodical reporting to the Management is needed for controlling all energy management activities, budget etc. Clear delegation of responsibilities, reporting procedures and accountability should be assigned for all stakeholders likes energy users, energy committee, energy managers, energy coordinators and top management.

One of the key factors, which often work against energy efficiency, is poor management of the structure of the system within which the costs of energy are incurred. If the people who control the ability to change energy use are not responsible for the energy budget, then the costs of energy efficiency will always be viewed as a distraction from core business. However, if we allocate a single budget to cover energy purchase, energy management activities and energy efficiency investment, the controllers and operators of this budget have a strong motivation to work to reduce energy expenditure. Furthermore, this approach allows innovative management of the budget, by allowing savings to be re- invested into further energy efficiency measures.

Thus, it is strongly recommended that an integrated energy purchase and energy management budget be developed as part of the energy management action plan.

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Motivation of Employees

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One of the most successful means of motivating employees is through “awareness”. Employees can be stimulated to support an energy management program if they are informed of (1) the amount of energy they are using (2) the costs involved (3) the critical part that energy plays in the continued viability of their job (4) the many ways they can save energy in their operation (5) the relationship between production rate and energy consumption and (6) the seriousness of the energy problem and its potential effects upon the nation economy in the future.

its potential effects upon the nation economy in the future. Another effective way to motivate employees

Another effective way to motivate employees is through recognition. Employees should be involved personally in setting realistic but challenging energy conservation goals through involvement cum commitment.

Fostering reasonable competition between departments is another healthy practice. It motivates individuals to set their sights higher and to work harder to achieve their goals.

Potential areas for motivating employees to generate ideas in saving energy are rewards, especially as financial rewards, job security, job enrichment, public recognition and greater authority etc

Marketing and Communicating

Although, the main function of energy management is to control energy consumption and provide information to support decision making, there is also a need to promote energy management and marketing of various activities. Promoting energy management involves the following key objectives:

Raising awareness of the importance of energy efficiency to cost control and environmental conservation Promoting energy efficiency measures Publishing your achievements in energy management inside and outside the organization

Many companies want to capitalize on any corporate activity that improves their image in their marketplace. Implementation of energy conservation and environmental protection measures indicative of a good corporate citizen - should be made known to customers and community.

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Through effective communication, Energy Manager needs to engage the attention of various groups and motivate them to follow his advice and adapt better practice. In particular, energy manager has to promote respect for energy management and increase its take-off.

Training

Training that pertains to energy management takes many form, depending on who are the target audience. Training may include the complex technical issues that relate to energy efficient technologies as well as general programs that increase awareness among general staff such as.

Awareness of energy efficiency as a corporate priority Understanding of issues Commitment to achievement of
Awareness of energy efficiency as a corporate priority
Understanding of issues
Commitment to achievement of goals
Understanding of personal impact on energy consumption

There are many ways to approach training at this level. The important principle is that the development of a staff training program requires some considerable thought about the present needs, knowledge and attitudes of staff. Performing a training needs assessment would be of immense help in providing the required inputs.

Energy forums, training days, seminars and talks all offer opportunities to create energy awareness and to build commitment. Energy managers can make presentations to all kinds of gatherings, for example: board meetings, management team meetings, and seminars for budget holders and middle managers.

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QUESTIONS

1.Define “ Energy Management”. What are the objectives of Energy Management .

2. List out the five (5) basic Objective of Energy Management.

3. What are the key activities involved in Energy Management. Briefly explain each

Activity

4. Define Energy Audit as per Energy Conservation Act 2001.

5. Mention the steps involved in Detailed Energy Audit.

5. Mention the steps involved in Detailed Energy Audit. 6. What are the barriers in Implementing

6. What are the barriers in Implementing Energy Management Programme.

7. Expalin “Accountability” while implementing Energy Management Programme. 8 What are the issues to be taken up while training of Energy Management. 9.What are the four (4) vital requirement for successful Energy Manager. 10.What is the importance of re- assess the Implementation plan.

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