energy management part 2/2


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energy management


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THE DEFINITION: "The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions” (Cape Hart, Turner and Kennedy, Guide to Energy Management Fairmont press inc. 1997) "The strategy of adjusting and optimizing 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"


THE OBJECTIVES: 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

The 4 pillars:

The 4 pillars

Steps in Energy Action Planning:

Steps in Energy Action Planning

Top Management Commitment and Support:

Top Management Commitment and Support Manpower and funds to achieve continuous improvement Appoint an energy manager, form a dedicated energy team and institute an energy policy

Appoint an Energy Manager:

Appoint an Energy Manager The tasks -- setting goals, tracking progress, and promoting the energy management program Establish energy performance as a core value Depending on the size of the organization, the Energy Manager’s role can be a full-time position or an addition to other responsibilities

Location of energy manager:

Location of energy manager Usually resides somewhere in the organization between senior management and those who control the end-use of energy Exactly how and where that function is placed is a decision that needs to be made in view of the existing organizational structure


responsibilities Prepare an annual activity plan and present to management concerning financially attractive investments to reduce energy costs Establish an energy conservation cell within the firm with management's consent about the mandate and task of the cell Initiate activities to improve monitoring and process control to reduce energy costs Analyze equipment performance with respect to energy efficiency Ensure proper functioning and calibration of instrumentation required to assess level of energy consumption directly or indirectly

PowerPoint Presentation:

Prepare information material and conduct internal workshops about the topic for other staff Improve disaggregating of energy consumption data down to shop level or profit center of a firm Establish a methodology how to accurately calculate the specific energy consumption of various products/services or activity of the firm Develop and manage training program for energy efficiency at operating levels Co-ordinate nomination of management personnel to external programs

PowerPoint Presentation:

Create knowledge bank on sectoral, national and inter-national development on energy efficiency technology and management system and information denomination Develop integrated system of energy efficiency and environmental up gradation Co-ordinate implementation of energy audit/efficiency improvement projects through external agencies Establish and/or participate in information exchange with other energy managers of the same sector through association


DUTIES Report to BEE and State level Designated Agency once a year the information with regard to the energy consumed and action taken on the recommendation of the accredited energy auditor, as per BEE Format Establish an improved data recording, collection and analysis system to keep track of energy consumption Provide support to Accredited Energy Audit Firm retained by the company for the conduct of energy audit Provide information to BEE as demanded in the Act , and with respect to the tasks given by a mandate, and the job description Prepare a scheme for efficient use of energy and its conservation and implement such scheme keeping in view of the economic stability of the investment in such form and manner as may be provided in the regulations of the Energy Conservation Act



PowerPoint Presentation:

Understanding energy cost is vital factor for awareness creation and saving calculation In many industries sufficient meters may not be available to measure all the energy used In such cases, invoices for fuels and electricity will be useful The annual company balance sheet is the other sources where fuel cost and power are given with production related information

Energy invoices can be used for the following purposes:

Energy invoices can be used for the following purposes They provide a record of energy purchased in a given year, which gives a base-line for future reference Energy invoices may indicate the potential for savings when related to production requirements or to air conditioning requirements/space heating etc. When electricity is purchased on the basis of maximum demand tariff They can suggest where savings are most likely to be made In later years invoices can be used to quantify the energy and cost savings made through energy conservation measures

Fuel costs:

Fuel costs A wide variety of fuels are available for thermal energy supply -- Fuel oil, LSHS, LDO, LPG, Coal, Lignite, Wood etc. Understanding fuel cost is fairly simple and it is purchased in Tons or Kiloliters Availability, cost and quality are the main three factors that should be considered while purchasing The following factors should be taken into account during procurement of fuels for energy efficiency and economics • Price at source, transport charge, type of transport • Quality of fuel (contaminations, moisture etc) • Energy content (calorific value)


POWER COSTS Electricity price in India not only varies from State to State, but also city to city and consumer to consumer though it does the same work everywhere. Many factors are involved in deciding final cost of purchased electricity such as: Maximum demand charges, KVA Energy Charges, kWh TOD Charges, Peak/Non-peak period Power factor Charge, P.F Other incentives and penalties applied from time to time High tension tariff and low tension tariff rate changes Slab rate cost and its variation Type of tariff clause and rate for various categories such as commercial, residential, industrial, Government, agricultural, etc. Tariff rate for developed and underdeveloped area/States Tax holiday for new projects


CONVERSION UNITS Electricity (1 kWh) = 860 kCal/kWh (0.0036 GJ) Heavy fuel oil (Gross calorific value, GCV) = 10000 kCal/litre ( 0.0411 GJ/litre) Coal (Gross calorific value, GCV) = 4000 kCal/kg ( 28 GJ/ton)

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