Energy Audit• Energy Conservation a growing concern since energy production in

India has not been able to keep pace with consumption, its efficient use is becoming increasing important.

• What is Energy Audit?• Energy Audits can be considered as the first step towards

understanding how energy is being used in a given facility.It indicates the ways in which different forms of energy (thermal,electrical etc.) are being used and quantifies energy use according to discrete functions.Energy Audits do not provide the final answer to the problem.They identify where the potential for improvement lies and,therefore,where energy management efforts must be concentrated.Energy audit is the only way to minimise energy losses in your industry and maximise your profits.

• Energy audits which account for 95% of all the energy utilised by a unit are the most important tool for managing energy effectively.The Petroleum Conversation Research Association of India is one of the key Organisations working towards energy conservation with a special focus on energy efficiency in industrial units.

• The main objectives of the association comprise formulation of strategies and promote measures to accerlerate conservation of petroleum products leading to environment protection,energy security and sustainable development.Energy cost is a significant factor in economic activity,on par with factors of production like capital,land and labour.

• The imperatives of energy shortage call for energy conservation measures,which essentially mean using less enrgy for the same level of activity.Energy audit attempts to balance the total energy inputs with its use and serves to identify all the energy streams in the systems and quantifies energy usage according to its discrete function.Energy Audit helps in energy cost optimisation,pollution control,safety aspects and suggests the methods to improve the operating and maintenance practices of the system.

• It is instrumental in coping with the situation of variation in energy cost availability,realiability of energy supply,decision on appropriate energy mix,decision on using improved energy conservation equipments,instrumentations and technology.

• In India the industrial sector consumes 50% of the total commercial energy but contributes only 25% of the GDP growth.Currently this sector consumes more than 100 MTOE (million tonnes of Oil equivalent.),with a growth rate of about 6% p.a. based on various analyses,a saving potential of around 20% has been identified in the industrial sector without significant improvement.

• The energy audit provides necesssary information base for overall energy consveration programmes and is vital link in the entire energy management chain.

• Energy management in turn can be construed as the process of guiding and controlling energy users so as to yield maximum possible output per unit of energy.

• The preliminary Energy Audit focuses on the major energy suppliers and demands accounting 70% of total energy.It is essentially a preliminary data gathering and analysis effort.It uses only available data and is completed with limited diagonostic instruments.The PEA is conducted in a very short time framei.e. 1 to three days during which the energy auditor relies on his experience together with relevant written,oral visual information that can lead to a quick

diagnosis of the plant energy situation.The PEA focuses on the identification of obvious sources of energy wastages.

• In the case of detailed energy audits,efforts are made to suggest solutions to optimise energy use.The detailed audit goes beyond quantitative estimates of cost and savings.It includes engineering recommendations and well defined project,giving due priorities.Approx. 95% of all energy is accounted for during the detailed audit.The detailed energy audit is conducted after the preliminary energy audit.

• Sophisticated instrumentation including flow meter,flow gas analyser and scanner are used to compute energy efficiency.Given the recent trends in global crude oil prices India will need to move to alternative energy sources like gas and coal based nethane to meet its energy requirements.

• And the growing shortfall in fuel will definitely impact consumers like the power sector.India is now working on a comprehensive package to popularise energy conservation.In the short terms these steps could include maximising returns from the assets already created in the energy sector,initiating measures for reducing technical losses production,transportation and end use of all forms of energy among others.It is also important to look into the basket of fuel in use.Progressive substitution of petroleum products by coal,lignite,natural gas and electricity would help restrict the quantum of oil imports.Action need to be initiated for accelerated development of all renewable energy resources,especially by hydroelectric potential.

• These policy elements were build on the hypothesis that foreign and private investments would be forthcoming at desired levels.

• As lack of procedures to fulfill accountability norms have resulted in poor response from investors.,the performance is not in conformity with the laid down policy experts say.Projections upto the year 2020 have ben made,primary energy dominance will be replaced by ‘BIO-Nuc’ er.Nuclear energy is expected to have installed capacity upto 20,000 MW and biomass consumption in terms of fuel wood will be about 200 mt per year.

• Power generation from fuel wood incineration,agro residue briquette gasification and cogeneration in sugar mills will have proven technologies.Bio-Nuc may contribute only to 12-14% of power generation.

• Energy audit support schemes –Initiatives by IREDA.Sharing Energy audit cost.

• Preliminary energy audit 100% of energy• Audit cost will be borne under the scheme.Detailed

energy audit 80% of the energy audit will b borne under the scheme and 20% by the industry.

• Loan linked support schemes for carrying out Energy Audit and preparation of bankable Detailed Project Reports for projects financed by IREDA Project category.

• a)End user energy efficiency and energy conservation projects b)Utility DSM projects.c)ESCO promoted projects(shared saving/guranteed saving or lease rental/fixed payment.)

• Purpose of Grant • a)Cost of carrying out energy audit,and for preparation of

bankable detailed project report for availing term loans.b)cost of carrying out energy audit for setting up a DSM cell in utility.c)cost of carrying out energy audit and DPR for availing financial assistance from IRDEA;cost of preparation of performance contract,including monitoring and valuation protocoal for the project and other project development costs.

• Eligible amount • a) Rs. 2 million per project or 4% of the loan

directly availed from IRDEA,whichever is lesser• b) Rs. 2 million per project or 4% of the loan

directly availed from IRDEA whichever is lesser.Rs. 1 million (provided a loan of a minimum of Rs. 5 million is availed.

• c) Rs. 3 million per project or 6% of the loan availed from IRDEA whichever is lesser.