Energy Conservation and Audit
Unit – I: Energy Conservation Basics
Present Energy Scenario
Scenario for India as on Dt. 19-10-2022
PLANT MW %AGE
THERMAL 2,36,086 57.9%
HYDRO 46,850 11.57%
NUCLEAR 6780 1.7%
RES 1,18,080 29%
TOTAL 4,07,796 100%
Need of Energy Conservation
Fossil fuels like coal, oil that has taken years to form is on the verge of depleting soon. In last
200 years we have consumed 60% of all resources. For sustainable development we need to
adopt energy efficiency measures. Today 85% of primary energy sources come from non-
renewable and fossil sources. These reserves increasing consumption and will exist for future
generations.
Energy survey conducted by Ministry of Power in 1992 revealed that there is requirement of
improvement in energy generation efficiency, improvement in energy transportation
(transmission & distribution systems) and enhancing the performance efficiency of use end
apparatus. Study of „Energy strategies for Future‟ evolved two things - efficient use of
energy, energy conservation and use of Renewable Energy. Energy conservation emerges out
to be the first and least cost option.
Important terms related to Energy Conservation
Energy Policy
Energy Policy defines the overall guidelines for the efforts to achieve greater energy
efficiency. It is established and maintained by the top management of the company.
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Energy Conservation and Audit
Energy Planning
Energy Planning involves setting of concrete energy targets complying with the overall
energy policy and elaborate action plans to achieve the targets in a given time frame.
Planning of several activities includes, forecast, budget, infrastructure, material, equipment,
technology, financial resource, human resource and R & D planning.
Energy management
Energy management can be defined in many ways. One way of defining it is: “The judicious
and effective use of energy to maximize profit and enhance competitive positions” another
comprehensive definition 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 cost of producing the output from these systems” The objective of energy
management is to achieve and maintain optimum energy procurement and utilization
throughout the organization and to:
(i) Minimize energy cost/energy waste without affecting production and quality,
(ii) Minimize environmental effects.
Energy Audit
Energy audit is an inspection, survey and analysis of energy flows for energy conservation in
a building, process or system to reduce the amount of energy input into the system without
negatively affecting the output(s). It also includes submission of technical report containing
recommendations for improving energy efficiency with cost benefit analysis and an action
plan to reduce energy consumption. In commercial and industrial real estate, an energy audit
is the first step in identifying opportunities to reduce energy expense. The primary objective
of Energy Audit is to determine ways to reduce energy consumption per unit of product
output or to lower operating costs. Energy Audit provides a “benchmark” (reference point)
for managing energy in the organization and also provides the basis for planning a more
effective use of energy throughout the organization.
Energy conservation
Energy conservation means reduction in growth of energy consumption and is measured in
physical terms. Energy conservation is the practice of decreasing the quantity of energy used
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Energy Conservation and Audit
while achieving a similar outcome of end use. (This practice may result in increase of
financial capital, environmental value, national security, personal security and human
comfort.) Energy conservation also means reduction or elimination of unnecessary energy
used and wasted.
Energy Efficiency
Energy Efficiency is defined saving energy, but keeping the same level of service. For
example, replace an inefficient incandescent light bulb with a more efficient compact
fluorescent lamp for an LED lamp. On the other hand, if you turn off the lights when you
leave a room, you are practicing energy conservation.
Energy Conservation vs. Energy Efficiency: What is the difference?
Energy conservation and efficiency may be related, but they have distinct definitions in the
energy world. Energy conservation involves using less energy by adjusting your behaviours
and habits. Energy efficiency, on the other hand, involves using technology that requires less
energy to perform the same function. Energy-saving light bulbs, large household appliances,
smart thermostats, and smart home hubs like Constellation Connect are all examples of
technology that can be energy efficient.
Energy intensity
Energy intensity is a measure of the energy efficiency of a nation‟s economy. It is calculated
as the amount of energy consumed for generating one unit of Gross Domestic Product.
Energy elasticity
Energy elasticity is the percentage change in energy consumption to achieve one % change in
national GDP in a specific country over time.
Energy Conservation Act – 2001
Enacted on 1st October 2001
Becomes effective from 1st March 2002
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Energy Conservation and Audit
Objective of providing necessary legal Framework for promoting energy conservation
measures in the country
Bureau of Energy Efficiency of operationalized from 1st March 2002
Purpose of the Energy Conservation Act 2001
The purpose of this act is to provide for efficient use of energy and its conservation
Provide a policy framework and direction to National energy conservation activities
Co-ordinate policies and programs on efficient use of energy with stakeholders
Established systems and procedure to verify measure and monitor improvement
Leverage multilateral bilateral and private sector support to implement the EC act
Demonstrate the delivery systems through public-private partnerships
To promote Energy Efficiency in this country
Important features of Energy Conservation Act 2001
Energy conservation Building Code (ECBC
Standards and labelling (S&L)
Demand side management (DSM)
Bachat lamp Yojana (BLY)
Promoting Energy Efficiency in small and medium enterprises (SMEs)
Designated consumers
Certification of energy managers and energy auditors
Salient features of energy conservation act 2001
The Act provides a long-range consequence, which is appended below:
The establishment of Bureau of Energy Efficiency (BEE) in place of existing Energy
Management Centre (EMC) to implement the provisions of the act
Declaration of a user or class of users of energy as a designated consumer
To lay down minimum energy consumption standards and labelling for identified
appliances/equipment and norms for industrial processes for energy intensive industries
Formation of energy consumption codes
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Energy Conservation and Audit
Dissemination of information and best practices
Establishment of Energy Conservation Fund both at the central and state levels
Provision of penalties and adjudication
The BEE would act as a facilitator for the evolution of a self-regulatory system and
organizations would regulate on their own with a view to save energy and thereby bring the
commercial concept in the organization
BEE: Bureau of Energy Efficiency
The Government of India set up Bureau of Energy Efficiency (BEE) on 1st March 2002
under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of
Energy Efficiency is to assist in developing policies and strategies with a thrust on self-
regulation and market principles, within the overall framework of the Energy Conservation
Act, 2001 with the primary objective of reducing energy intensity of the Indian economy.
Role of BEE
BEE co-ordinates with designated consumers, designated agencies and other organizations
and recognize, identify and utilize the existing resources and infrastructure, in performing the
functions assigned to it under the Energy Conservation Act. The Energy Conservation Act
provides for regulatory and promotional functions.
Major Promotional Functions of BEE include:
Create awareness and disseminate information on energy efficiency and conservation
Arrange and organize training of personnel and specialists in the techniques for efficient
use of energy and its conservation
Strengthen consultancy services in the field of energy conservation
Promote research and development
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Energy Conservation and Audit
Develop testing and certification procedures and promote testing facilities
Formulate and facilitate implementation of pilot projects and demonstration projects
Promote use of energy efficient processes, equipment, devices and systems
Take steps to encourage preferential treatment for use of energy efficient equipment or
appliances
Promote innovative financing of energy efficiency projects
Give financial assistance to institutions for promoting efficient use of energy and its
conservation
Prepare educational curriculum on efficient use of energy and its conservation
Implement international co-operation programmes relating to efficient use of energy and
its conservation
MEDA: Maharashtra Energy Development Agency
The Government of Maharashtra has notified the Maharashtra Energy Development Agency
(MEDA), as the designated agency to co-ordinate, regulate and enforce the provisions of the
Energy Conservation Act and implement schemes under the said Act within the State. This is
a significant step forward for MEDA, which as the State nodal agency, now has the
additional responsibility of promoting and developing energy efficiency, besides facilitating
renewable energy development.
Role of MEDA
MEDA shoulders imperative responsibility to conduct awareness, training and capacity
building for various stakeholders. Prime objective of such training programs is for ease of
implementation of ECBC Compliant buildings in Maharashtra. Beyond the process of
modification and enforcement of the codes in the State, the capacity building training activity
plays a key role in creating awareness of Energy Conservation Building Code throughout the
State.
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Energy Conservation and Audit
Standards and Labelling
The Bureau initiated the Standards and Labelling (S and L) programme for equipment and
appliances in 2006 to provide the consumer an informed choice about the energy saving and
thereby the cost-saving potential of the relevant marketed product. The scheme is invoked for
19 equipment/appliances, i.e. Room Air-Conditioners, Fluorescent Tube Lights, Frost Free
Refrigerators, Distribution Transformers, Induction Motors, Direct Cool Refrigerator, electric
storage type geyser, Ceiling fans, Colour TVs, Agricultural pump sets, LPG stoves, Washing
machine, Laptops, ballast, floor standing ACs, office automation products, Diesel Generating
sets & Diesel operating pump sets of which the first 4 products have been notified under
mandatory labelling from 7th January, 2010. The other appliances are presently under
voluntary labelling phase. The energy efficiency labelling programmes under BEE are
intended to reduce the energy consumption of appliance without diminishing the services it
provides to consumers. Further, the standards and label for refrigerators and air-conditioners
have been periodically made more stringent. As a result, the least-efficient products are
removed from the market and more efficient products are introduced. The Corporate Average
Fuel Consumption Standards (CAFC) for passenger cars has been notified on 30th January,
2014. The most recent additions to the list of labelled products are Diesel Pump Sets &
Diesel Generating Set. During the twelfth plan, Standards and Labelling programme will
target at least 3 more new equipment/appliances including up gradation of energy
performance standards for equipment/appliances covered during eleven plans.
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