CH508 - Energy Technology for Process Industry
Industrial Energy
Management (Overview)
06th March 2026
10.10 – 12.00 noon
Benefits of Energy Management
• Reduces energy consumption (save money)
• Reduces pollution
• Increases comfort & safety
• Makes the country’s economy stronger
• Increases the country’s energy security
Objectives of Industrial Energy Management
• The objective of Energy Management is
− To achieve and maintain optimum energy procurement and utilization
throughout the organization
− To minimize energy costs / waste without affecting production & quality
− To minimize environmental effects
− To be smart among competitive entities
Strategy
• The strategy is to adjust and optimize 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
• Benchmark the energy usage
− energy requirements per unit of output
− ex. Energy consumption per unit mass of cement
Energy Management Overview
Steps:
• STEP 1: Make Commitment
• STEP 2: Assess Performance (Energy Auditing)
• STEP 3: Set Goals
• STEP 4: Create Action Plan
• STEP 5: Implement Action Plan
• STEP 6: Evaluate Progress
• STEP 7: Recognize Achievements
Energy Auditing (Assess Performance)
Energy Audit
• Energy audit is an effective tool in defining and pursuing comprehensive energy
management programme
• Energy Audit is the key to a systematic approach for decision-making in the area
of energy management
• identify all the energy streams in a facility
• quantify energy usage according to its discrete functions
• estimate energy losses by balancing energy inputs with energy out puts
• bench-mark (Reference point) for managing energy in the organization
• submit a report containing recommendations for improving energy efficiency
with cost benefit analysis, and an action plan to reduce energy consumption
• 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
• Energy audits are performed by a team consisting energy experts (SMEs)
• Comprehensive Energy Audit has two steps;
i) Preliminary Audit
ii) Detailed Audit
Preliminary Energy Audit
• Readily-available data are mostly used for a simple analysis of energy use and
performance of the plant
• 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-cost/low-cost) improvements/ savings
• Set a 'reference point‘ (bench mark or baseline)
• Identify areas for more detailed study/measurement
• These audits take a relatively short time and the results are more general,
providing common opportunities for energy efficiency
Detailed Energy Audit
• Detailed audit
• Evaluates all major energy using systems
• Offers the most accurate estimate of energy savings and cost
• Considers the interactive effects of all projects and accounts for the energy
use of all major equipment
• performs detailed energy cost saving calculations and project cost
• Time required for this type of audit is longer than that of preliminary audits.
Methodology of detailed energy audit
(10-step methodology)
• In the detailed audit, an energy balance is made
• Inventoried energy using systems (assuming current operating conditions and
calculating energy use)
• Compare the estimated energy use with utility bill charges
• Detailed energy auditing is carried out in three phases
• Phase I : Pre Audit Phase (preliminaries before the main audit)
• Phase II : Audit Phase
• Phase III : Post Audit Phase
Ten-step methodology to conduct Energy
Audit
Useful baseline information and reports
• The audit team should collect the following baseline data:
• Technology, processes used and equipment details
• Capacity utilization
• 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
Information to be collected during the
detailed audit
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
Instruments and
measuring devises
Hygrometer
A hygrometer measures
relative humidity. Warmer
air can hold more
moisture, so if cold air is
heated, it will feel very dry
Light Meter unless humidified.
A light meter measures the amount of light in a space
in units of foot candles. Spaces that are overly lit may
be using more energy than necessary.
Watt meter
This tool allows you to
measure how much power
(Watts) an electrical device
uses at any given time. By
changing the display, it will
also measure kWh
consumed over a period of
Digital Thermometer time.
The digital thermometer can be used to tell
if a room is of the appropriate temperature,
and compare how spaces may be infiltrated
by thermal energy or moving air. Waterproof
versions can also help check the
temperature setting of your water heating
system.
Data recording format
• Audit Template are used to collect,
store and report energy audit data
• Audit Template Data Input Steps
• Input Basic Building Information
(Process section, facility
description, year of construction,
gross floor area, etc)
• Contact Information
• Utility Data and Benchmarking
• Energy Use Breakdown
Example
process
flow
Sanky diagramme
Energy Conservation Opportunities
• Fuel substitution: Identify the appropriate fuel for efficient energy conversion
• Natural gas for fuel oil
• Biomass for fissile fuels
• Energy generation within the facility: Identify Efficiency opportunities in energy
conversion equipment/utility
• captive power generation, steam generation in boilers, thermic fluid heating,
optimal loading of DG sets, minimum excess air combustion with boilers,
efficient energy conversion equipment, biomass gasifiers, cogeneration, high
efficiency diesel generator (DG) sets, etc.
• Energy distribution: Identify opportunities for efficient energy
distribution network
• Transformers, cables, switchgears and power factor improvement in electrical
systems. chilled water, cooling water, hot water, compressed air, etc.
• Energy usage by processes: Identify opportunities to reduce energy
use in the process
• Major opportunity for energy efficiency improvement are available; many
opportunities are hidden
• Process analysis is useful tool for process integration measures
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
• Economic analysis can be conducted by using a variety of method
• Pay back method, IRR (Internal Rate of Return method), NPR (Net Present
Value method )
Prioritization of energy saving option
• Potential energy saving projects are classified into three categories:
1. Low cost - high return
2. Medium cost - medium return
3. High cost - high return
Energy Audit Reporting Format, Example: