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1.0 ENERGY MANAGEMENT,MONITORING & TARGETING
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Principles of EnergyManagement
Procure energy at lowest possible price
Manage energy use at highest energy efficiency
Reusing and recycling energy
Select low investment technology to meet presentrequirement and environment condition
Make use of wastes generated within the plant assources of energy and reducing the component of
purchased fuels and bills
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The 4 pillars of SuccessfulEnergy Management
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Steps in Energy Action Planning
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Top ManagementCommitment and Support
Manpower and funds to achieve
continuous improvement. Appoint energy manager, form a
dedicated energy team and institute anenergy policy.
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Appoint an Energy Manager
The tasks of energy manager are settinggoals, tracking progress, and promotingthe energy management program.
Establish energy performance as a core
value Depending on the size of the
organization, the Energy Manager rolecan be a full-time position or an addition
to other responsibilities Location of energy manager
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Form a Dedicated Energy Team
execute energy management activities acrossthe organization and ensuring integration ofbest practices.
Creating an energy team helps to integrateenergy management activities in an
organization.
In addition to planning and implementingspecific improvements, the energy teammeasures and tracks energy performance and
communicates with management, employeesand other stakeholders.
the team can include a representative fromeach operational area that significantly affectsenergy use
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Plant Management
Other Sections,
Acctts., HRD,
Expansion, R&D, etc.
Manufacturing
Section - 1Energy Management
Division
Manufacturing
Section - 2
Energy manager Shop Manager
Nodal Officer for EM
Organisation structure of Energy
Management
Nodal officials from
each department
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Organisation structure ofEnergy Management in Hindalco
Management
Director
Chief Officer (Mfg)
Chief Officer (Finance & Commerce)
Central Technical Cell
Sectional Heads
Central Energy Cell
Head
Section Coordinators
Alumina
Boiler, Cogen
& Rectifier
Reduction Fabrication Utilities
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Institute an Energy Policy
Energy policy provides the foundation for settingperformance goals and integrating energy managementinto an organization's culture and operations.
Aformal written energy policy acts both as:
A public expression of the organizations commitmentto energy conservation and environmental protection
A working document to guide the energy managementpractices and provides continuity.
It is in the company's best interest that support for
energy management is expressed in a formal writtendeclaration of commitment accompanied by a set ofstated objectives, an action plan for achieving them, anda clear specification of responsibilities.
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Rashtriya Ispat Nigam Limited
Visakhapatnam Steel Plant
ENERGY POLICY
We, at Visakhapatnam Steel Plant, are committed to optimally utilise
various forms of energy in a cost effective manner to effect conservation
of energy resources. To accomplish this we will :
Monitor closely and control the consumption of various forms ofenergy through an effective Energy Management System.
Adopt appropriate energy conservation technologies.
Maximise the use of cheaper and easily available forms of energy.
Make energy conservation a mass movement with the involvement
of all employees.
Maximise recovery of waste energy.
Reduce Specific Energy Consumption by 1% per year by 2010.
Date Dr. B.N. Singh
14-06-2002 Chairman-cum-Managing Director
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Assess Energy Performance
Understanding current and past energy use
helps an organization identify opportunities toimprove energy performance and gain financialbenefits.
Assessing energy performance is the periodic
process of evaluating energy use for all majorfacilities and functions in the organization andestablishing a baseline for measuring futureresults of energy efficiency efforts.
Key aspects include data collection andmanagement, establishing baseline,benchmarking, analysis and evaluation andconducting technical assessment and audit.
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Data Collection and Management
Collect data Determine appropriate level of detail
Account for all energy sources
Document all energy uses
Collect facility and operational data Track data
Scope
Maintenance
Reporting and communicating
Actions Normalise data
Determine normalisation factor
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Establishing Baseline
Determine the starting point from whichto measure progress
Establish base year
Identify metrics
Publish results
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Benchmark
Compare the energy performance of
facilities to each other, peers andcompetitors, and over time to prioritizewhich facilities to focus on forimprovements.
Facility or organizational performancemay be benchmarked to:
Past performance
Industry average Best in class
Best Practices
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Analysis and Evaluation
Analyze Data -Understand your energy
use patterns and trends.Assessing your energy performancehelps you to: Categorize current energy use by fuel type, operating
division, facility, product line, etc. Identify high performing facilities for recognition and
reuse of best practices.
Prioritize poor performing facilities for immediateimprovement.
Understand the contribution of energy expendituresto operating costs.
Develop a historical perspective and context forfuture actions and decisions.
Establish reference points for measuring and
rewarding good performance.
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Establish GoalsCreate and express clear, measurable goals, with target dates,for the entire organization, facilities, and other units.
Defined reduction
Best-in-class
Efficiency improvement
Environmental Improvement
Actions
F Fi ld A l i
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Force Field Analysis
Goal: To reduce energy consumption per unit of production
Positive Forces
(Acting towards the achievement of the
Goal)
Negative Forces
(Acting against the achievement of the
Goal)
High price of energy
Energy efficient technology available
Incentive for high power factor
Top Management commitment to energy
conservation
Energy is a relatively high component ofproduct cost
Absence of corporate energy policy
Lack of awareness throughout company
Insufficient skills and knowledge available
Competing corporate priorities
Insufficient financial resources to fund
measures
C t A ti Pl
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Create Action Plan
With goals in place, the organization is nowready to develop a roadmap to improve energyperformance
Successful organizations use a detailed actionplan to ensure a systematic process toimplement energy performance measures.
Unlike the energy policy, the action plan isregularly updated, most often on an annualbasis, to reflect recent achievements, changesin performance, and shifting priorities
While the scope and scale of the action plan isoften dependent on the organization, the stepsbelow outline a basic starting point for creatinga plan
D fi T h i l St d
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Define Technical Steps andTargets
Evaluate technical assessments andaudit results
Determine technical steps
Create performance targets
Set timelines
Establish a tracking system
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Implement Action Plan
In addition to implementing the technical
aspects of the action plan, consider thefollowing Create communication plan -Develop targeted
information for key audiences about your energymanagement program.
Raise awareness -Build support at all levels of yourorganization for energy management initiatives andgoals.
Build capacity -Through training, access toinformation, and transfer of successful practices,procedures, and technologies, you can expand the
capacity of your staff. Motivate -Create incentives that encourage staff to
improve energy performance to achieve goals.
Track and monitor -Using the tracking systemdeveloped as part of the action plan to track andmonitor progress regularly.
E l t P
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Evaluate Progress
Measure results
Gather tracking data
Benchmark
Review action plan
Get feedback
Assess awareness
Identify critical factors
Quantify side benefits
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Energy Monitoring &
Targeting
you cant manage what you dont measure
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Define-Energy Monitoring & Targeting
Monitoring is essentially aimed at preservingan established pattern
Targeting is identification of energyconsumption level, which is desirable asmanagement objective to work towardsenergy conservation
Monitoring and Targeting is a managementtechnique in which all plant are managed as
controllable resources in the same way thatraw materials, personnel and capital aremanaged
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Energy Monitoring & Targeting
Monitoring of Energy use in Utilities such asfuel, steam, refrigeration, compressed air,water, effluent and electricity etc.
Energy use compared with production any
other suitable measure regularly forestablishing trends / setting targets
Spotting of variances from trend for remedialaction
Using M&T alone, typical saving potential in
various industrial sectors is between 5 and20%.
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M & T can help to
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M & T can help to
Check accuracy of energy invoices
Allocate energy cost to variousdepartments
Determine energyperformance/efficiency
Record energy use for futurechecking improvements of energyefficiency projects
Highlight performance problemsrelated to equipment /systems
Need for M & T
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Need for M & T
Find out whether energy use is gettingbetter or worse
Spots trends in energy consumption(seasonal, weekly etc.)
Impact on energy use with changes inbusiness
Pin-point areas of wasted energy Comparison with business of similar
nature
How your business has reacted to
changes in past Performance targets for energy
management programme
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Source for Information
Plant level information can be derived fromfinancial accounting system-Utility cost cente
Plant department level information can befound in comparative energy consumption
data for group of similar facilities, servicemeter readings
System level (for e.g. boiler plant can beobtained from sub-metering data
Equipment level information can be obtainedfrom name plate data, runtime and scheduleinformation, sub-metered data on specificenergy equipment
Data & Information Analysis
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Data & Information Analysis
Annual energy cost sheet
Thermal Energy Bill Electricity Bill TotalEnergyBill
Month Fuel1
Fuel2
Fuel3
TotalRs.Lakhs
DayKwh
NightKwh
MaximumDemand
TotalRs.Lakhs
Rs. Lakhs
12
34
5
67
89
10
1112
Sub-Totals
%
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Electricity
45%
Furnace
Oil 38%
LPG12%
HSD5%
% Share of fuels based
on energy bill
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Pie Chart on Energy Consumption
Table 8.2 : Fuel conversion data
Energy source Supply unit Factor to Kcal
Electricity kWh 860
HSD kg 10,500
Furnace Oil kg 10,200
LPG kg 12,000
Figure 8.2 % Share of fuels based on consumption in kcals
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Relating Energy Consumption and Production.Energy current year Vs Previous Year
It does not tell full story about what is happening.
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Moving Annual Total Energy vs.Production
Each point represents the sum of previous 12 months
This techniques smoothens errors due to meter readings and seasons etc
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Specific Energy Consumption
SEC is very low in December 1999
S ifi E ti ith
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Specific Energy consumption withProduction
Add production data to the SEC chart.
SEC is very low in December 1999 because of record level production
This indicates there could be some fixed energy consumption
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Energy vs. Production
Scatter diagram
Derive an equation for slope
Production- Energy Relationship
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Production Energy Relationship
Energy consumed for the period) =
(M x Production for same period) + C
C l i S
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Cumulative Sum (CUSUM)Technique
Difference between expected orstandard consumption with actualconsumption data points over baseline
period of time.
Follows a fixed trend unless something(energy saving measure, deteriorationin performance..) happens
Helps calculation of savings/losses tilldate after changes
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CUSUM chart -Example
This chats is a plot of variation in standard energy consumption
cusum charts shows what is really happening to the energy performance
July onwards , there is an ongoing decline in performance
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Case Study
Table : 8.3 Month wise production with energy consumption
Month E - Monthly Energy Use( toe * / month)
P - Monthly Production( tonnes / month)
1 340 380
2 340 440
3 380 460
4 380 520
5 300 320
6 400 5207 280 240
8 424 620
9 420 600
10 400 560
11 360 440
12 320 360
13 340 420
14 372 480
15 380 540
16 280 280
17 280 260
18 380 500
During month 9,
heat recovery
system was
installed
Estimate the
energy savings
with heat
recovery systemusing CUSUM
technique?
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Solution
1. Plot the Energy
Production graph for thefirst 9 months
2. Draw the best fit straight line
3. Derive the equation of the line E = 0.4 P +180
4. Calculate the expected energy consumptionbased on the equation
5. Calculate the difference between calculatedand actual energy use
6. Compute CUSUM (refer table in next slide)7. Plot CUSUM graph
8. Estimate savings accumulated from heatrecovery system use
CUSUM
M th E P E E CUSUM
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Month Eact P Ecalc Eact
Ecalc
CUSUM
1 340 380 332 +8 +8
2 340 440 356 -16 -8
3 380 460 364 +16 +8
4 380 520 388 -8 0
5 300 320 308 -8 -8
6 400 520 388 +2 -6
7 280 240 276 +4 -2
8 424 620 428 -4 -6
9 420 600 420 0 -6
10 400 560 404 4 -10
11 360 440 356 +4 -6
12 320 360 324 -4 -10
13 340 420 348 -8 -18
14 372 480 372 0 -18
Energy Production Graph
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Energy Production Graph
0
50
100
150
200
250
300
350
400
450
500
P-Production(t/month)
Energy(toe/month)
Ecalc
=0.4 P+180
Plotting of CUSUM graph
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Plotting of CUSUM graph
-60
-50
-40
-30
-20
-10
0
10
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
CUSUM
Savings