Question

Q) Explain in brief, the importance of Energy Auditing and Energy Management. With the use of a case study, explain its significance at your workplace?

Answer 1

Energy Management can be summarised as the strategy devised to adjust and optimise energy, using systems and methods to reduce energy requirements per unit of output while reducing the total costs of producing output from said systems.

The objectives of energy management are:
1. To minimise energy costs and waste without affecting production and its quality
2. To minimise environmental effects.

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".

IMPORTANCE OF ENERGY AUDITING
The top operating expenses in any industry are found to be energy, labour, and raw materials. Amongst these, energy comes out as the most expensive, and thus energy management would invariably reduce the overall cost of production. Energy audit helps an industry to understand ways in which fuel and energy are used, and identify areas which have excessive waste production, and highlight areas which have scope for improvement. It also gives a positive orientation to preventive maintenance and quality control porgrammes.
A proper audit program helps to keep focus on the variations in energy costs, availability, the reliability in energy supply, it also helps to identify more efficient energy mixes and conservation techniques. Energy audit helps translate energy conservation ideas into realities. It provides a reference point to manage energy and plan a more efficient energy use throughout the organisation.

CASE STUDY
A textile process industry replaced old fuel oil fired thermic fluid heater with agro fuel fired
heater. The economics of the project are given below:
Initially, a thermic fluid heater with furnace oil was being used. It was suggested that a coconut chip fired boiler would operate continuously with a performance almost at par with the furnace oil heater. The annual fuel costs were reduced from Rs. 13 million to Rs 5 million. The additional charges incurred in purchasing a coconut chip fired heater were reimbured within six months of operation.
Thus, it can be seen that energy audit can very efficiently reduce the operation costs at a workplace.