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Energy management is “The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions” .It can also be defined as “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 first step in energy management is Energy Audit. Energy Audit is the key to a systematic approach for decision-making in the area of energy management. This includes:

  • Expenses-material, labour, energy
  • Cost reduction, maintenance, productivity
  • Conservation technology, energy mix
  • Benchmark
  • Technically and economically feasible

Need for Energy Audit:

In any industry, the three top operating expenses are often found to be energy (both electrical and thermal), labour and materials. If one were to relate to themanageability of the cost or potential cost savings in each of the above components,energy would invariably emerge as a top ranker, and thus energy management function constitutes a strategic area for cost reduction. Energy Audit will help to understand more about the ways energy and fuel are used in any industry, and help in identifying the areas where waste can occur and where scope for improvement exists. The Energy Audit would give a positive orientation to the energy cost reduction, preventive maintenance and quality control programmes which are vital for production and utility activities.Such an audit programme will help to keep focus on variations which occur in the energy costs, availability and reliability of supply of energy, decide on appropriate energy mix, identify energy conservation technologies, retrofit for energy conservation equipment etc. In general, 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.


The energy audit will be initiated with a site visit on obtaining the W.O. This will determine number of offsite and on site days required to complete the work. This will entail visits of our auditors/ engineers with required set of instruments. There will be continuous logging of energy parameters to monitor load pattern over various cycles of day night and weekends.

Generation of energy audit report will be through following methods or steps.

Step 1
Phase I –Pre Audit Phase

  • Plan and organise
  • Walk through Audit
  • Informal Interview with Energy Manager,Production / Plan Manager

Step 2

Conduct of brief meeting /awareness programme with all divisional heads and persons concerned (2-3 hrs.)

Step 3
Phase II –Audit Phase

  • Primary data gathering, Process Flow Diagram, & Energy Utility Diagram

Step 4

Conduct survey and monitoring

Step 5

Conduct of detailed trials /experiments for selected energy guzzlers

Step 6

Analysis of energy use

Step 7

Identification and development of Energy Conservation (ENCON) opportunities

Step 8

Cost benefit analysis

Step 9

Reporting & Presentation to the Top Management

Step 10
Phase III –Post Audit phase

  • Implementation and Follow-up