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  • Subject area(s): Engineering
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  • Published on: 7th September 2019
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Today’s organizations are desperate for new options for growth, enhance operational overall performance, cut down the cost of energy, and still provide a framework for well-timed decision-making. Certainly, by far the most important of such concerns is the call to limit the energy level of every business enterprise and also to far better take care of these options and costs. Within the unpredictable energy sector of the Twenty-first century, excluding management within the company's energy management decision-making can place the corporation’s competitiveness at an increased risk. This report focus on Energy Management and Energy Audit coupled with some technical, economical and environmental issues that surround it.

1 Introduction

The problem of energy management is especially complex for large entities, such as corporations, universities, municipalities, etc., which may have a physical plant with many different facilities or factories located at various different locations. With a conventional energy management approach, each facility owned by the large entity may independently manage its own energy. Thus, for a large entity, there must be a conventional energy management system associated with each facility or factory, which greatly increases the overall cost of conventional energy management.

Comprehensively, by definition, Energy Management is 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. It is a systematic process for improving energy performance. It encompasses the ubiquitous application of the energy management concept from design and purchasing through to operation and maintenance. It’s clear that energy management programs take different shapes and forms depending upon the company, the initiative, and the management approach. In one embodiment, energy management is achieved by using time as a variable. This can be achieved by intermittent sampling. Variable time courses can be used for measuring signals from the beginning and the duty cycle rates can be adjusted, for example adjusted at the remote monitoring system.

On the other hand, energy audit is the process of assessing energy consumption, equipment or a facility. It is the key to a systematic approach for decision-making in the area of energy management. According to Energy Conservation Act, 2001, it is "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".

Management of Energy is one very important component that is a subset to area for cost reduction whereby helping to comprehend the alternatives to the usage of energy and fuel in an industry, therefore, Energy Audit will help with the identification of potholes where waste is prone to occur with a doorway to improving it. In a nutshell, Energy Audit is the translation of conservation ideas into realities, by lending technically feasible solutions with economic and other organizational considerations within a specified time frame.

In this report is Life-cycle cost analysis (LCCA). It is an economic method of project evaluation in which all costs arising from owning, operating, maintaining, and ultimately disposing of a project are considered to be potentially important to that decision. LCCA is particularly suitable for the evaluation of building design alternatives that satisfy a required level of building performance (including occupant comfort, safety, adherence to building codes and engineering standards, system reliability, and even aesthetic considerations), but that may have different initial investment costs; different operating, maintenance, and repair (OM&R) costs (including energy and water usage); and possibly different lives.

LCCA is a reliable tool of economic analysis. Accordingly, it needs more data than do analyses taking into account first-cost or short-term considerations. It likewise requires extra comprehension with respect to the expert in the areas of, for example, discounted cash-flow, consistent versus current dollars, and price acceleration rates. The option, be that as it may, is to disregard the long-run cost outcomes of investment choices, to dismiss gainful speculation opportunities, and to acknowledge higher-than-would normally be necessary utility costs.

2 Methods

Method for Energy Audit

The audit process begins at the utility meters where the sources of energy coming into a building or facility are measured. Energy flows - inputs and outputs - for each fuel are then identified. These flows are measured and quantified into distinct functions or specific uses, then the function and performance of all building components and systems are evaluated. The efficiency of each of the functions is assessed, and energy and cost-savings opportunities are identified. Each phase of the energy audit process is managed by an energy auditor coupled with the facility proprietor, strategic operations and maintenance team, and controls contractor (if there is the need). The energy audit process is followed up with an audit report, which gives one, in print, all of the information that are gathered during the audit, as well as recommended improvements based on cost-effectiveness.

Audit reports should contain some direction in a “where to from here” section so that a basic structure for incorporating energy management into ordinary management processes is achieved. In particular, this applies to the initial steps of monitoring and targeting.

Irrespective of the audit level one goes for or the amount of facilities an auditor wishes to audit, the energy audit process is usually similar. In an audit process, one of the important step to follow is the selection of an energy auditor and a contract should be developed.

To conduct an Energy Audit, the following below are determinants:

a. Function and type of industry;

b. Depth to which final audit is needed; and

c. Potential and magnitude of cost reduction desired

Thus Energy Audit can be classified into the following two types:

Walk-through Energy Audit: It is a stroll through ones facility with the intention of identifying low- or no-cost operating and maintenance measures that will improve building performance without sacrificing comfort or indoor air quality. It assesses site energy consumption and relevant costs on the basis of energy bills-invoices and a short on-site autopsy. A walk-through of a building or facility is an opportunity to quickly appraise the condition and operation of energy using systems.

Detailed – diagnostic energy audits: In this type of energy audit, all data and information are needed to be detailed. Measurements and a data inventory are usually conducted and different energy systems (pump, fan, compressed air, steam, process heating, etc.) are assessed in detail. This makes time to be consumed for audit to be longer than normal when compared to walk-through energy audit. A list for potential capital-intensive energy investments requiring more detailed data acquisition and processing is also provided together with an estimation of the associated costs and benefit.

Detailed energy auditing is carried out in three phases:

The Economic side of an Energy Audit Process

The economic analysis can be conducted by using a variety of methods. Example includes Pay back method, Internal Rate of Return method, Net Present Value method etc. For low investment short duration measures, which have attractive economic viability, simplest of the methods, payback is usually sufficient. A sample worksheet for assessing economic feasibility is provided below:

Method for Low-Cycle Cost

The LCC method takes into account first costs, including capital investment costs, purchase, and installation costs; future costs, including energy costs, operating costs, maintenance costs, capital replacement costs, financing costs; and any resale, salvage, or disposal cost, over the life-time of the project, product, or measure.

The conservation of energy projects is a very good illustration for the application of LCCA. In a case of thermal performance, there are a lot of prospects to improve it in a building system so as to cut down the loss of heat in the winter and gain during the summer. Also, there are a number of options for heating, air conditioning and cross ventilating which can provide and sustain a comfortable atmosphere for a long period of time alongside energy efficiency benefits over other options. Where initial capital cost of a new project is increased due to energy conservation project, LCCA can be used to evaluate the economical justifiability putting the perspective of the investor in consideration enveloping the factors such as reduced energy costs and some other cost implications in a building.

In any case, the utilization of LCCA further continues when a cost-effective energy conservation project has been recognized. There are quite often various cost-effective design options for any given building framework. For instance, thermal insulation can be introduced over an extensive variety of thermal resistance values in walls and rooftops. Window systems are accessible over an extensive variety of thermal conductance values and with an assortment of sun-blocking films. A number of these options might be cost effective, however (typically) just one can really be utilized as a part of a given application. In such cases, LCCA can be utilized to distinguish the most cost-effective option for the application of interest. This is by and large the option with the least life-cycle cost

Materials and Methods for Energy conservation measure

An ECM is to improve the energy efficiency of building infrastructure, including

1. Envelop: is a composition of layers with varying thermal and permeability properties which may be composed of membranes, sheets, blocks and preassembled components; and the choice of envelope is governed by the climate, culture, and available materials. This greatly affect the use of energy in different means and they are:

a. Design of the building envelop: it involves the use of exterior wall materials and designs that are climate-suitable, structurally sound and artistically attractive. The building envelop of a house consists of its roof, sub floor, exterior doors, windows and of course the exterior walls. Experts have created new inventive approaches to enhance general design of building so as to boost light and heat efficiency, for instance through impassive solar heating, which utilizes the heat energy from sun to warm the building when it is cold without depending on any mechanical or electrical set ups.

b. Building Envelop materials and product selection:

Embodied energy: Efforts to reduce this energy use and related emissions, for instance via the replacement of bio-based products, can be made as among the efforts to lessen emissions from buildings.

Insulation and air sealing: without no mechanical effort, heat flows to a cooler area from a warmer area but with the help of insulators, this passage of heat flow is blocked which in consequence minimize the energy required to make a building warm and cool in the winter and in the summer respectively. However, there are a number of options that can be alternatives to insulation and they are natural fiber insulation, concrete block, insulating concrete forms, spray foam, rigid foam, blanket and so on. All cracks and leaks in a building exposes a building to air flow and they can be sealed by weather stripping, spray foam or caulk. (  

Roofs: to lower the quantity of air conditioning needed in period like summer, the design and materials of a roof is a factor. Solar photovoltaic (PV) systems (which converts light into electricity at the atomic level) ( can either be installed as a rooftop array on top of the building pointing toward the sun and components that take the direct-current electricity produced by modules and "condition" that electricity, usually by converting it to alternate-current electricity ( or a building-integrated photovoltaic system can be integrated into the building as roofing tiles or shingles.

Walls: the design concern influence the arrangement of windows and doors, the size and area of which can be enhanced to diminish energy losses. Choices in regards to the suitable material can be more confounded in light of the fact that the design of a wall have an effect on energy properties of the whole wall. Critically, building's thermal properties can be affected by the material choice and wall insulation.

Windows, doors and skylights: they do not consume energy, but they can be a significant source of heat loss in a home or building ( They will often have condensation or even frost on them during cold weather, possibly causing mold. Energy-efficient windows, doors, and skylights—also known as fenestration – have a big influence on the lighting and the HVAC requirements of a building. Also, the amount of energy transmitted through the window, door, or skylight, as well as the amount of air leakage around the window components can be affected by the types materials and installation used.

The technologies used can address various channels of energy loss, for example, air leak, wet insulation, and thermal bridging. Installation choices consist of Building insulation; Fenestration (i.e. windows, doors, skylights); High efficiency glazing; Air sealing; Cool/green roofing; Advanced building facades (

The building envelope represents a substantial percentage of a building's cost; for a multi-story building, the envelope costs (dominated by the cost of walls and fenestration) may even exceed 20% of the total building construction cost ( Without mincing words, the harmony between the cost of the building envelope and its performance levels will be of remarkable significance in accomplishing the most low cost design of a building. However, there are some number of deciding factors that influence the general cost estimate and subsequently, it is vital to think through these before evaluating the general expenses. These deciding elements are as recorded underneath:

i. The cost of construction continues to fluctuate as it immensely relies upon condition of local market at the season of bidding and construction;

ii. The cost of construction continues to fluctuate in light of the area of the project;

iii. The fluctuating costs of major materials, for example, steel and wood (generally they shoot upward) cannot be anticipated ahead of time. (

Building envelop contractors need to come up with designs and convey cohesive solutions and deal with a complicated supply chain and team up intimately with designers and contractors to convey projected performance in a low cost way.

2. HVAC: heating, ventilation and air conditioning. It refers to the different systems, machines and technologies used in indoor settings such as homes, offices and hallways, and transportation systems that need environmental regulation to improve comfort. By reducing a building thermal loads, there would be an increase in energy consumption by HVAC system which tries to control the internal environment of a building and hence, the operating cost of HVAC is cut down. This HVAC application involves taking outside air, heating and conditioning it to replace air exhausted from industrial or commercial buildings ( The applications include Electronic Thermostats, Room and Duct Air Temperature, Outside Ambient Temperature, Condenser Temperature and Coolant Line Temperatures; highly efficient environmental building control systems require temperature measurements at various points within the HVAC system.

The benefits of high performance, energy-efficient HVAC systems are universal and therefore, high performance HVAC systems can be installed in all different types of buildings, including office buildings, schools, hospitals, and courthouses (

i. Lighting: the methods for efficient lighting includes replacement of traditional incandescent bulbs with compact fluorescent light bulbs (CFLs) is replaced; relamping, that is, replacing old fluorescent tubes with efficient fluorescent tubes in local government and commercial buildings; Convert T-12 fixtures/lamps to T-8 or T-5; Relamp 32 watt T-8 lamps with 28 watt T-8; Eliminate incandescent bulbs; Making streetlights more efficient through the use of high pressure sodium lights instead of the old mercury vapour light; Sodium lights operate on just over half the power of the mercury vapour light, and last up to 6000 hours longer.

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