You may be familiar with financial audit. You may know that it is an examination of accounts dealing with funds or property by officers appointed for the purpose and hence, a calling to account, an examination into one’s action.The ISO 9001:2000 defines audit as a systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled. Here “independent” and “evidence” are not very relevant as an auditor can be independent or in- house. The concept of energy audit is similar to that of the financial audit.
Types of Energy Audit
The nature of energy audit to be performed depends on:
•the function and type of industry;
•the depth to which final audit is needed; and
•the potential and magnitude of cost reduction desired.
There are several types of energy audits. These are listed below in order of increasing scope and, therefore, cost:
•Preliminary Audit,
•Utility Cost Analysis,
•Standard Energy Audit, and
•Detailed Energy Audit. ion
You may like to study these types of energy audit in some detail.
Preliminary Energy Audit
This is the simplest and quickest type of audit. It focuses on evaluating the energy usage pattern and generates baseline data on the operational practices in vogue. It is a relatively quick exercise to:
• establish energy consumption in the organization;
• estimate the scope for energy savings;
• identify the most likely (and the easiest) areas for attention;
• identify immediate (especially no-/low-cost) improvements/ savings;
• set a “reference point”; and
• identify areas for more detailed study/measurement.
Preliminary energy audit uses existing or easily obtainable data. It usually involves a one day site visit to collect an overall facility profile and information on major energy using systems and equipment. It includes minimal interviews with site operating personnel, a brief review of facility bills and other data. A walk-through of the facility is also done to become familiar with the operation and to identify any glaring areas of inefficiency.
Typically, only major problem areas are uncovered during this type of audit. Corrective measures are briefly described, and quick estimates of implementation cost, potential savings, and simple payback periods are provided. This level of detail is adequate to prioritize energy efficiency projects and determine the need for a more detailed audit. Recommendations resulting from a preliminary audit include low to no-cost actions that can provide immediate energy use and/or operating savings.
Utility Cost Analysis
The purpose of this type of audit is to analyze the operating costs of the facility, and determine the potential for energy efficiency retrofits. The auditor may also perform a preliminary audit to familiarize himself/herself with the facility. Utility data and the facility’s utility bills are analyzed for the past several years to identify patterns of energy use, peak demand, and weather effects. This information is used to identify energy savings potential, calculate the energy utilization index, and determine the incremental cost of each unit of energy.
Standard Energy Audit
This audit provides a comprehensive analysis of the energy systems of a facility. It includes both a preliminary audit and utility cost analysis. In addition, the standard energy audit includes the establishment of baseline energy use, evaluation of energy measures in terms of energy and cost savings and cost effectiveness.Off-site, the auditor establishes the utility’s operational characteristics through drawings and discussions with utility managers. Standards and codes are reviewed and building and equipment use schedules are established. On-site,an inventory is taken of all the energy consuming equipment nameplate ratings of energy consumption. Metering equipment is installed to verify the energy consumption of the equipment. Based on the drawings, site survey, and utility analysis, the auditor creates a baseline energy model. Potential energy savings measures are then evaluated for their efficiency and payback.
Detailed Energy Audit
The detailed audit, also called a maxi audit, site-energy audit or complete site energy audit, expands on the preliminary audit. It is carried out by collecting more detailed information about the operation and performing a more detailed evaluation of energy conservation measures. It follows essentially the same steps as the standard audit; however, it is broader in scope and usually takes more time. Computer simulation tools are typically employed, and more detailed metering of consumption is undertaken. The economic analysis involves an integrated systems approach which accounts for interactions in implementing multiple retrofit measures, such as lighting and HVAC.
The purpose of a detailed audit is to identify specific recommendations and make suggestions for energy savings. This type of audit offers the most accurate estimate of energy savings and costs. It accounts for the energy use of all major equipment and operations, and includes detailed cost saving calculations and project cost. It can be used to formulate action plans for the implementation of these recommendations based on the investment required, payback period, cost benefit ratio, etc.
Utility bills are collected for a period of 12-36 months to allow the auditor to evaluate the facility’s energy demand to rate structures, and energy usage profiles. The additional metering of specific energy consuming systems is often performed to supplement utility data. In-depth interviews with facility operating personnel are conducted to provide a better understanding of major
energy consuming systems as well as to gain an insight into the variations in consumption and demand.This type of audit helps in identifying all energy conservation measures appropriate for the facility. A detailed financial analysis is performed for each measure based on detailed implementation cost estimates, site-specific operating cost savings, and the customer’s investment criteria. Sufficient detail is provided to justify project implementation.
So far, you have studied about the concept of energy audit, its aims and the types of energy audit. You may now like to know as to how an energy audit is conducted in a power distribution utility. This is what we discuss in the next section. But before that, we would like you to check your own understanding of the concepts you have studied so far.
!Concept of Energy audit
An energy audit is an in-depth study of a facility to
• determine how and where energy is being used or converted from one form to another, and
• identify opportunities to reduce energy usage and prevent energy losses.
It is the technique to establish the current status of energy efficiency of a system.Energy auditing in a power utility involves
• identifying energy losses and quantifying them;
• segregating the losses into technical and commercial losses;
• estimating the energy conservation potential of a system; and
• proposing economically viable and attractive solutions.
The ultimate end result of such an exercise is to improve system performance,increase its efficiency and introduce design changes leading to renovation,modernisation and upgrading the existing systems. Energy audit helps to evaluate the economics, and technical practicability of implementing the measures for energy loss and usage reductions. Thus, it helps the utility to formulate prioritized recommendations for implementing process improvements to save energy.
Definition of Energy Audit under the Energy Conservation Act, 2001 As per the Energy Conservation Act, 2001, an energy audit is defined as“the verification, monitoring and analysis of use of energy including submission of a technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption.”Energy accounting gives us an overall picture of energy availability and its use. Energy audit helps us in analyzing the data in a systematic and meaningful manner to evolve appropriate measures to
•introduce checks and balances in the system for reducing leakages and losses; and
•achieve technical performance.
Aims of Energy Audit
In any industry, the three top operating expenses are often found to be energy, labour and materials. Amongst the three, energy emerges as the top ranking area for cost reduction. Energy audit can help us understand more about the ways energy and fuel are used in the industry, and help in identifying the areas where waste can occur and where scope for improvement exists.Energy audit is carried out with the following aims:
a) review and upgrading of procedure for energy accounting;
b) review of technical efficiency of system elements in sub-transmission and distribution (ST&D) system;
c) analysis of the techniques for measuring the energy received, energy billed and the corresponding revenue collection;
d) review of performance of equipment, meters, distribution transformers, etc.;
Types of Energy Audit
The nature of energy audit to be performed depends on:
•the function and type of industry;
•the depth to which final audit is needed; and
•the potential and magnitude of cost reduction desired.
There are several types of energy audits. These are listed below in order of increasing scope and, therefore, cost:
•Preliminary Audit,
•Utility Cost Analysis,
•Standard Energy Audit, and
•Detailed Energy Audit. ion
You may like to study these types of energy audit in some detail.
Preliminary Energy Audit
This is the simplest and quickest type of audit. It focuses on evaluating the energy usage pattern and generates baseline data on the operational practices in vogue. It is a relatively quick exercise to:
• establish energy consumption in the organization;
• estimate the scope for energy savings;
• identify the most likely (and the easiest) areas for attention;
• identify immediate (especially no-/low-cost) improvements/ savings;
• set a “reference point”; and
• identify areas for more detailed study/measurement.
Preliminary energy audit uses existing or easily obtainable data. It usually involves a one day site visit to collect an overall facility profile and information on major energy using systems and equipment. It includes minimal interviews with site operating personnel, a brief review of facility bills and other data. A walk-through of the facility is also done to become familiar with the operation and to identify any glaring areas of inefficiency.
Typically, only major problem areas are uncovered during this type of audit. Corrective measures are briefly described, and quick estimates of implementation cost, potential savings, and simple payback periods are provided. This level of detail is adequate to prioritize energy efficiency projects and determine the need for a more detailed audit. Recommendations resulting from a preliminary audit include low to no-cost actions that can provide immediate energy use and/or operating savings.
Utility Cost Analysis
The purpose of this type of audit is to analyze the operating costs of the facility, and determine the potential for energy efficiency retrofits. The auditor may also perform a preliminary audit to familiarize himself/herself with the facility. Utility data and the facility’s utility bills are analyzed for the past several years to identify patterns of energy use, peak demand, and weather effects. This information is used to identify energy savings potential, calculate the energy utilization index, and determine the incremental cost of each unit of energy.
Standard Energy Audit
This audit provides a comprehensive analysis of the energy systems of a facility. It includes both a preliminary audit and utility cost analysis. In addition, the standard energy audit includes the establishment of baseline energy use, evaluation of energy measures in terms of energy and cost savings and cost effectiveness.Off-site, the auditor establishes the utility’s operational characteristics through drawings and discussions with utility managers. Standards and codes are reviewed and building and equipment use schedules are established. On-site,an inventory is taken of all the energy consuming equipment nameplate ratings of energy consumption. Metering equipment is installed to verify the energy consumption of the equipment. Based on the drawings, site survey, and utility analysis, the auditor creates a baseline energy model. Potential energy savings measures are then evaluated for their efficiency and payback.
Detailed Energy Audit
The detailed audit, also called a maxi audit, site-energy audit or complete site energy audit, expands on the preliminary audit. It is carried out by collecting more detailed information about the operation and performing a more detailed evaluation of energy conservation measures. It follows essentially the same steps as the standard audit; however, it is broader in scope and usually takes more time. Computer simulation tools are typically employed, and more detailed metering of consumption is undertaken. The economic analysis involves an integrated systems approach which accounts for interactions in implementing multiple retrofit measures, such as lighting and HVAC.
The purpose of a detailed audit is to identify specific recommendations and make suggestions for energy savings. This type of audit offers the most accurate estimate of energy savings and costs. It accounts for the energy use of all major equipment and operations, and includes detailed cost saving calculations and project cost. It can be used to formulate action plans for the implementation of these recommendations based on the investment required, payback period, cost benefit ratio, etc.
Utility bills are collected for a period of 12-36 months to allow the auditor to evaluate the facility’s energy demand to rate structures, and energy usage profiles. The additional metering of specific energy consuming systems is often performed to supplement utility data. In-depth interviews with facility operating personnel are conducted to provide a better understanding of major
energy consuming systems as well as to gain an insight into the variations in consumption and demand.This type of audit helps in identifying all energy conservation measures appropriate for the facility. A detailed financial analysis is performed for each measure based on detailed implementation cost estimates, site-specific operating cost savings, and the customer’s investment criteria. Sufficient detail is provided to justify project implementation.
So far, you have studied about the concept of energy audit, its aims and the types of energy audit. You may now like to know as to how an energy audit is conducted in a power distribution utility. This is what we discuss in the next section. But before that, we would like you to check your own understanding of the concepts you have studied so far.
!Concept of Energy audit
An energy audit is an in-depth study of a facility to
• determine how and where energy is being used or converted from one form to another, and
• identify opportunities to reduce energy usage and prevent energy losses.
It is the technique to establish the current status of energy efficiency of a system.Energy auditing in a power utility involves
• identifying energy losses and quantifying them;
• segregating the losses into technical and commercial losses;
• estimating the energy conservation potential of a system; and
• proposing economically viable and attractive solutions.
The ultimate end result of such an exercise is to improve system performance,increase its efficiency and introduce design changes leading to renovation,modernisation and upgrading the existing systems. Energy audit helps to evaluate the economics, and technical practicability of implementing the measures for energy loss and usage reductions. Thus, it helps the utility to formulate prioritized recommendations for implementing process improvements to save energy.
Definition of Energy Audit under the Energy Conservation Act, 2001 As per the Energy Conservation Act, 2001, an energy audit is defined as“the verification, monitoring and analysis of use of energy including submission of a technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption.”Energy accounting gives us an overall picture of energy availability and its use. Energy audit helps us in analyzing the data in a systematic and meaningful manner to evolve appropriate measures to
•introduce checks and balances in the system for reducing leakages and losses; and
•achieve technical performance.
Aims of Energy Audit
In any industry, the three top operating expenses are often found to be energy, labour and materials. Amongst the three, energy emerges as the top ranking area for cost reduction. Energy audit can help us understand more about the ways energy and fuel are used in the industry, and help in identifying the areas where waste can occur and where scope for improvement exists.Energy audit is carried out with the following aims:
a) review and upgrading of procedure for energy accounting;
b) review of technical efficiency of system elements in sub-transmission and distribution (ST&D) system;
c) analysis of the techniques for measuring the energy received, energy billed and the corresponding revenue collection;
d) review of performance of equipment, meters, distribution transformers, etc.;
e) segregation of technical and non-technical losses; and
f)establishment of norms for checking the consumption of various categories of consumers and overall energy balance in the circles.In general, energy audit facilitates the translation of ideas about energy conservation into reality, by lending technically feasible solutions with economic and other organisational considerations within a specified time frame. The primary objective of energy audit is to determine ways of reducing energy consumption per unit of product output or to lower operating costs.
For a distribution utility, energy is a commodity and its monitoring is essential.Energy audit for a distribution utility
• ensures that input units into an area are recorded;
• ensures that the corresponding output units are recorded;
• identifies areas of deficiency (under recording and/or theft) and its correction;
• enables accurate calculation of systemic losses (both technical and commercial);
Energy audit in a power utility provides a benchmark or reference point for managing energy in the utility and the basis for planning a more effective use of energy in the utility. Proper energy accounting and auditing would facilitate in the creation of a data base to act as input for the following improvements in the distribution system:
• load management;
• details of power factor, active and reactive power flows and suitable location for reactive power injection in the system;
• assessment of diversity in the system;
• optimum utilisation of equipment and services;
• improved voltage profile in the system;
• details of category-wise consumption of loads and proper forecast of demand; and
• better system augmentation and expansion planning.
f)establishment of norms for checking the consumption of various categories of consumers and overall energy balance in the circles.In general, energy audit facilitates the translation of ideas about energy conservation into reality, by lending technically feasible solutions with economic and other organisational considerations within a specified time frame. The primary objective of energy audit is to determine ways of reducing energy consumption per unit of product output or to lower operating costs.
For a distribution utility, energy is a commodity and its monitoring is essential.Energy audit for a distribution utility
• ensures that input units into an area are recorded;
• ensures that the corresponding output units are recorded;
• identifies areas of deficiency (under recording and/or theft) and its correction;
• enables accurate calculation of systemic losses (both technical and commercial);
Energy audit in a power utility provides a benchmark or reference point for managing energy in the utility and the basis for planning a more effective use of energy in the utility. Proper energy accounting and auditing would facilitate in the creation of a data base to act as input for the following improvements in the distribution system:
• load management;
• details of power factor, active and reactive power flows and suitable location for reactive power injection in the system;
• assessment of diversity in the system;
• optimum utilisation of equipment and services;
• improved voltage profile in the system;
• details of category-wise consumption of loads and proper forecast of demand; and
• better system augmentation and expansion planning.
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