Energy Auditing An introduction.

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1 Energy Auditing An introduction

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3 The Australian Government s Energy Efficiency Opportunities (EEO) program encourages large energy-using businesses to increase their energy efficiency by improving the identification, evaluation and implementation of worthwhile energy savings opportunities. Energy efficiency can deliver significant financial and social benefits and is the most cost effective way to reduce greenhouse gas emissions. Participation in the program is mandatory for corporations that, individually or as part of a corporate group, use more than 0.5 PJ of energy per year. There is a temporary exemption for companies in the energy distribution and transmission sector. The threshold of 0.5 PJ of energy per year is approximately equivalent to: 139,000 megawatt hours of electricity; 9000 tonnes of LNG or 10,000 tonnes of LPG; 13 megalitres of diesel; or spending of approximately $11-17 million on electricity, $ million on gas or EEO Guidlines $16-18 million on diesel (depending on prices).

4 The program applies to over 310 corporations from the manufacturing, mining, resource processing, electricity generation, transport and commercial sectors. These corporations use approximately 57% of Australia s total energy use. Participants in the program are required to assess their energy use and report publicly on the results of the assessment and the business response. Decisions on energy efficiency opportunities remain at the discretion of the business. The program s Assessment Framework takes a whole of business approach to assessing energy use and energy savings opportunities. The framework requires corporations to consider the many factors influencing energy use, including leadership, management and policy; the accuracy and quality of data and analysis; the skills and perspectives of a wide range of people; decision making; and communicating outcomes. Participants are expected to meet minimum requirements in each of these areas. Corporations must report publicly on the results of their energy efficiency assessments and the opportunities that exist for projects with a financial payback of up to four years. The focus is on the energy savings opportunities identified in the EEO Guidlines assessment and the business response to those opportunities.

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6 The manual Part A - An Overview of Energy Auditing Part B - Energy Analysis Methods Part C - Technical Supplement

7 What is an energy audit? A process required to develop an energy management plan. Needs to find when, where, why and how energy is used in the company/ residence. data collection and review plant surveys and system measurements observation and review of operating practices data analysis

8 What are the challenges? define the system being considered measure energy flows into and out of the system select convenient units so all parts of the system can be converted to common units. be able to calculate energy in material flows be able to calculate heat from pecursory energy forms

9 Key energy audit steps 1 Conduct a condition survey 2 Establish the audit mandate 3 Establish the audit scope 4 Analyse energy consumption and costs 5 Compare energy performance 6 Profile energy use patterns 7 Inventory energy use 8 Identify EMOs (Energy Management Opportunities) 9 Access the benefits 10 Report for action

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11 Preparation for audit Develop an audit plan Coordinate plant departments Define audit resources

12 Develop an audit plan The audit plan should provide the following the audit mandate and scope when and where the audit will be conducted details of the organizational and functional units to be audited (including contact information) elements of the audit that have a high priority the timetable for major audit activities names of audit team members

13 Coordination with plant departments Consider the following review the audit purposes (objectives), scope and plan adjust the audit plan as required describe and ensure understanding of the audit methodologies define communications links during the audit confirm the availability of resources and facilities confirm the schedule of meetings (including the closing meeting) with the audit s management group inform the audit team of pertinent health, safety and emergency procedures answer questions ensure that everyone is thoroughly familiar and comfortable with the audit s purposes and outcomes

14 Defining audit resources The auditor(s) chosen should be independent of audited activities, both by organizational position and by personal goals be free of personal bias be known for high personal integrity and objectivity be known to apply due professional care in his or her work

15 Energy Savings Toolbox - Canadian Industry Program for Energy Conservation 1 Conduct a Condition survey 2 Establish the audit Mandate 3 Establish the audit scope 4 Analyse Energy Consumption and Costs 5 Comparative analysis Description Identifies the most likely locations for the audit. Identifies EMOs that could be implemented without further analysis. Helps to set priorities for the audit s mandate and scope Establishes and articulates the purpose of the audit Secures stakeholder input and commitment to the audit mandate Specifies the physical extent of the audit by setting the terms of the boundary around the audited energy- consuming system Identifies energy inputs that cross the boundary to be audited Tabulates all energy inputs purchased and otherwise Establishes the annual pattern of energy consumption and total annual consumption Compares current energy performance with internal historical performance and external benchmarks Provides insight into what drives the energy consumption of a facility and what relative savings potential may exist Data required Visual inspection of representative areas and equipment Input from senior management and production and maintenance staff Constraints in timing, resources and access to facilities Resources Results from condition survey Location of all energy inputs to the system Lists of all major energyconsuming systems Utility bills for each purchased energy source Metered data for other energy inputs Applicable utility rate structures Periodic energy consumption data Periodic data for relevant consumption drivers (or impact variables) such as production, weather and occupancy Templates and Checklists Spreadsheet templates Analysis and Methods Condition Survey Checklists (Section C-3) Audit Mandate Checklist (Section B-2) Audit Scope Checklist (Section B-3) Condition Survey.xls N/A Condition Survey.xls Electricity Cost.xls Gas Cost.xls Fuel Cost.xls Condition Survey (Section B-1) Audit Mandate (Section B-2) Audit Scope (Section B-3) Analyse Energy Consumption and Costs (Section B-4) N/A N/A Comparative Analysis.xls Comparative Analysis (Section B-5) External Resources N/A Natural Resources Canada (NRCan) technical publications Consultants N/A Utilities often provide historical energy consumption data tabulation and analysis Consultants that specialize in energy accounting or energy monitor- ing and targeting (M&T) Results A relative assessment of the condition of each energyconsuming system present in the facility Statement of the audit outcome: Audit location Extent and types of analysis Type of EMOs and extent of savings analysis required Other related outcomes of the audit, e.g. productivity, operations and maintenance (O&M), environmental cobenefits Specification of the audit boundary in terms of input energy flows, energy consuming systems and, indirectly, energy outflows Relative annual cost of each purchased form of energy Incremental (marginal) cost of electrical demand and electrical energy natural gas other fuels Relationships between energy use and significant drivers Trends in consumption Preliminary reduction targets Savings potential in reducing the variability of energy consumption

16 6 Profile Energy use Patterns 7 Inventory of Energy use 8 Identify Energy Management opportunities (EMOs) Develops an understanding of the time patterns in which the system consumes energy Logged data over intervals from one minute to one hour to one day for electrical power gas flow temperature humidity light level airflow or pressure other pertinent and measurable factors N/A Profile.xls Profile Energy Use Patterns (Section B-6) Instrumentation for Energy Auditing (Section C-4) Energy consultants providing metering services Electrical utilities Gas utilities Abnormal energy use conditions not otherwise evident Dis-aggregation of energy use when combined with energy inventory Characterization of facility, system and equipment operation Provides a clear picture of where energy is being used Helps to prioritize possible EMOs and reveal opportunities for reduction by eliminating unnecessary uses Facility and equipment drawings and specs Equipment inventory and nameplate data Power and fuel consumption Measured flow rates, temperatures, etc. Equipment condition and performance Load Inventory Forms (Section C-5) Load Inventory.xls Thermal Inventory.xls Fuel Systems.xls Envelope.xls Electrical Load Inventory Method (Sections B-7 and C-5) Thermal Energy Use Inventory Method (Sections B-7 and C-1) Simple Energy Balances (Section B-7) Instrumentation for Energy Auditing (Section C-4) N/A A breakdown of energy consumption by major area of use (e.g. gas consumption for production vs. space heat; electricity consumption for process, ventilation, compressed air, lighting and conveyance) Involves critical assessment of systems and levels of energy consumption Methods range from open-ended analyses to close- ended checklists Helps to determine whether a more detailed micro- audit is needed Energy inventories and balances Notes from walk-through tour Selected measurements 9 Assess the Costs and Benefits 10 Report the audit s Findings for action Preliminary assessment of energy savings opportunities Accounts for inter- action between EMOs when several are possible, i.e. determines net savings Reports the audit s findings in a way that facilitates taking action (applies to all levels of EMOs, from no-cost house- keeping items to capital-intensive retrofit EMOs) Existing vs. proposed energy Results from each preceding step, consumption from the initial cost analysis to the Incremental cost of energy EMO financial benefit Optional measurements of existing consumption and conditions Energy Savings Toolbox - C Industry Program for Energ Conservation Description Data required EMO Checklists (Section C-2) N/A ReportTemplate (Section B-10) Templates and Checklists N/A Assess the Benefit.xls Assess the Benefit.xls Spreadsheet templates Finding EMOs in the Energy Inventory (Section B-7.5) AThree-Step Approach (Section B-8) EMO Checklists (Section C-2) Sector-specific energy efficiency guides CIPEC Energy Efficiency Planning and Management Guide A list of EMOs prioritized for immediate action further analysis by micro-audit and ranked to harmonize interactions between EMOs Assess the Costs and Benefits (Section B-9) External consultant EMO savings EMO implementation costs EMO financial benefit Written Report (Section B-10) Assess the Costs and Benefits (Section B-9) External consultants NRCan Dollars to $ense workshops Analysis and Methods External Resources A succinct and compelling Results presentation of the audit findings, including Executive summary Analysis of existing energy consumption Description of EMOs identified Savings assessment for selected EMOs Action plan for implementation

17 1 Condition survey

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19 2 Audit mandate

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22 3 Audit Scope

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24 4 Energy Consumption and Cost (Electricity, gas, fuel)

25 5 Comparative Analysis

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27

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29 6 Profile Energy Use Patterns

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31 7 Inventory Energy Use

32 Don t forget thermal energy

33 8 Identify Energy Management Opportunities

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36 9 Assess Costs and Benefits

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38 10 Report for Action

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