CONTENTS
1. INTRODUCTION…………………………………………………………………………………………. 4
2. OUTLOOK ON HOC……………………………………………………………………………………… 4
2.1. PRODUCTION UNITS IN HOC……………………………………………………………………… 4
2.2. HOC ENERGY CONSUMPTION…………………………………………………………………… 5
3. ABOUT ISO50001……………………………………………………………………………………….. 5
4. ENERGY MANAGEMENT SYSTEM (ENMS)…………………………………………………….. 6
5. GOVERNMENT STRATEGIES……………………………………………………………………….. 6
6. GAP STUDY………………………………………………………………………………………………. 7
6.1. LIGHTING SYSTEM…………………………………………………………………………………… 7
6.1.1. Existing Lighting System……………………………………………………………………….. 7
6.1.2. Recommended Lighting System…………………………………………………………….. 7
6.1.2.1. Relamping lamps and fixtures……………………………………………………………… 7
6.1.2.2. Relamping incandescent fixtures……………………………………………………….. 8
6.1.2.3. Relamping fluorescent fixtures…………………………………………………………… 8
6.1.2.4. Electronic Ballast………………………………………………………………………………. 8
6.1.2.5. Lighting Transformer…………………………………………………………………………. 8
6.2. MOTORS………………………………………………………………………………………………… 8
6.3. POWER FACTOR CORRECTION…………………………………………………………………. 10
7. ENERGY BASELINE……………………………………………………………………………………. 10
8. SIGNIFICANT ENERGY USE………………………………………………………………………… 11
9. ENERGY PERFORMANCE INDICATOR…………………………………………………………… 11
10. ENERGY AUDIT………………………………………………………………………………………… 11
11. CONCLUSION…………………………………………………………………………………………… 12
12. REFERENCES………………………………………………………………………………………….. 13
ABBREVATIONS
HOC……………Hindustan Organic Chemicals
BEE……………Bureau of Energy Efficiency
ECBC………….Energy Conservation Building Codes
NMEEE……….National Mission for Enhanced Energy Efficiency
NAPCC………..National Action Plan on Climate Change
PAT…………….Perform, Achieve and Trade Scheme
MTEE………….Market Transformation for Energy Efficiency
EEFP………….Energy Efficiency Financing Platform
FEEED………..Framework for Energy Efficient Economic Development
NEMMP……….National Electric Mobility Mission Plan
SEU……………Significant Energy Use
EnPI……………Energy Performance Indicators
MRS……………Main Receiving Station
CPP……………Captive Power Plant
DG……………..Diesel Generator
LSFO………….Low Sulphur Furnace Oil
KSEB………….Kerala State Electricity Board
VFD……………Variable Frequency Drives
INR…………….Indian Rupee
1. INTRODUCTION
According to the statistics of the year 2019, the “Commercial and miscellaneous Services”,
sector had the highest rate of energy consumption in the United Kingdom with a
consumption of “14615” “kilo tonnes of oil equivalent (ktoe)” of energy. It has a mix of fuel in
the proportion of Electricity at “43 %”, Natural gas at “34 %” and other fuels at “23 %”. It is
preceded by the sector of “Chemical Manufacturing “and “Iron and Steel manufacturing” with
a combined energy consumption of “8614” “Kilo tonnes of oil equivalent”. Energy audits could
be conducted in various industrial facilities and assets of such sectors for facilitating
effective and efficient assessment of energy and recommendation of practice and
mechanisms to bring down and diminish the costs and consumption and ensure complete
utilisation of energy resources to avoid wastage.
2. OUTLOOK ON SILK
Steel Industries Kerala Limited, is an India based manufacturing plant of steel structures
established in 1974. SILK manufactures structures like steel castings for building marine
ships, vessels and barges and also it caters light and Heavy Engineering sector. Penstock
shutters for dams, radial gates and erection of engineering structures are the other areas
where SILK extend theirservices. SILK has Ship Building Unit, Steel Fabrication Unit, Foundry
Unit, Ship Breaking Unit and General Engineering works. In this Audit we are considering
General Engineering Works Unit, which manufactures steel fabrication and steel furniture for
food courts, bridges, storage tanks, hospital furniture’s etc. This plant is situated at
Cherthala, Kerala in 2.5 Acres of land with a plant area of 31130 square feet. and have an
annual production capacity of 600MT.
Fig.1: SILK satellite view
3. CHALLENGES AND INDUSTRIAL ENERGY AUDIT OPPORTUNITIES
3.1. Challenges of energy audit
3.1.1. Inefficient and inadequate Review of Installed energy systems
Industrial plants have Energy systems which are the measures taken up by companies to
reduce their expenditure and maximise profitability. Systems are installed for fans, motors,
pumps, steam and compressed air installed in the industries with distinctive production
automation and processes (Linjordet et al. 2020). Measures for improving energy efficiency
and exercising the opportunities to overcome the challenges faced in energy audits could be
discussed according to specific industries.
3.1.2. Inflated and amplified Estimation of profits
The high ratio between working and apparent power that is the power factor would state
efficient utilisation of electrical energy in the industry. A low factor could be avoided by
conserving energy, replacement and installation of capacitors (Kontokosta, 2020).
3.1.3. Substandard Representation of systems Installation
A Motor management plan is crucial in building the strategy of the motor management
system which could be achieved by conducting a survey, developing guidelines related to
breakdown and repair which could result in savings of in the range of “2 % to 30” % “(Efficiency
Partnership, 2004)”.
Fig.2: Process Flow for Audit Program
(Source: Smartsheet.com, 2022)
3.2. Audit opportunities in Motors Systems
A facility’s motor systems and its efficiency could be improved by following the approach of
installation of “pumps”, “compressors” and “pumps” for increasing the efficiency and gaining
optimization.
Improvement scope
Prevention of overloading, imbalance, lubrication and ventilation of motors, could be
achieved by creating an inventory for spares management, specifying and allotting a team
for taking decisions related to specific purchase and repair and implementation of a
program for maintenance and prevention. Adequate maintenance, regular monitoring and
reducing the leakages in pipelines could help in achieving optimum utilisation of such
compressors. Minimization in the pressure of the installed fan systems could redu ce costs
and help in increasing the life of the fan systems.
3.3. Types of Energy Audits and its application
The audit to be conducted in a specific industry depends on factors such as its type, size
and its undertaking. There are 2 types of audits which could be applied in any industry which
are discussed below,
3.3.1. Preliminary Audit
A “preliminary audit” is more like a “walk through audit”. Such an audit is conducted for a
short period of time and there is no or very less requirement of data. Such data could be
obtained quickly and easily as it is readily available for conducting a simple analysis and
therefore providing fundamental outcomes and opportunities for effective and efficient
usage of magnitude of energy (Cooremans, 2019).
Applications of Preliminary Audit: The audit procedures could be applied for simple
calculations of payback period of the investments made and measures taken for saving
power and establish the relationship between the investment made and savings in cost
which could be economically profitable.
3.3.2. Detailed Audit
“Detailed audit” can be also called “diagnosed audit”. It is a comprehensive and long audit
procedure requiring the detailed data of the industry as the name suggests . It suggests
evaluation and Calculation of the data from the systems of inventory management in the
systems of pumps, air compressors and motors.
Applications of Detailed Audit: It brings forth a more reliable and calculated summary of
consumed energy suggesting the methods for facilitation of improvement in the required
areas including the evaluation and estimation of Internal Rate of Return, Net Present Value
and Life Cycle costs for comparing present and future costs of alternative methods.
Fig.3: Energy Audit Process
(Source: researchgate.net, 2022)
4. TYPES, PHASES AND PROCESS OF ENERGY AUDIT COMPONENTS
4.1. Types
4.1.1. Preliminary Audit
A “preliminary audit” is more like a “walk through audit”. Such an audit is conducted for a short
period of time and there is no or very less requirement of data (Lee et al. 2020). Such data
could be obtained quickly and easily as it is readily available for conducting a simple analysis
and therefore providing fundamental outcomes and opportunities for effective and efficient
usage of magnitude of energy.
4.1.2. Standard Audit
A “standard audit” is like a detailed audit provides a detailed analysis of a specific project. It
evaluates the energy used and optimises the energy losses by reviewing and analysing the
systems.
4.1.3. Detailed Audit
“Detailed audit” can be also called “diagnosed audit”. It is a comprehensive and long audit
procedure requiring the detailed data of the industry as the name suggests. It suggests
evaluation and Calculation of the data from the systems of inventory management in the
systems of pumps, air compressors and motors.
4.2. Phases
4.2.1. Investigation
Inspection and scrutiny of all the elements within the scope of the energy audit for the
purpose of assessing the efficiency, controls and load on the various systems. Audit findings
are to be summarized and presented in a format on the basis of the data and provide cost
improvement measures.
4.2.2. Monitoring
This phase involves monitoring and detailed observing of the energy data of the various
equipment in the plant and evaluation of the total energy usage.
4.2.3. Analysis & Reporting Phase
In this phase, the monitored data on energy usage is analysed and calculated for getting the
energy efficiency. Form this analysis, the environmental impacts caused due to the energy
consumption are also obtained. And finally, with these analysed data reports are prepared.
4.3. Process
4.3.1. Pre-Site work
This process is carried out by an Auditor to gather the required information for conducting
an audit. These details include, the building plan, the land nature, all unit details, wiring
details, lightings provided across the plant, details of machineries used, plant drawings etc.
Here a minimum of 3 years energy utility data needs to be collected. Initially, the basic
information is gathered and this information is processed and a site visit is scheduled for
proceeding further.
4.3.1.1. Building Details
Here we are considering the General Engineering Works Unit of SILK Ltd. This unit is spread
across an area of 2.5 acres of land. The main building known as Plant A is having an area of
22250 sq.ft. and along with that, additional building blocks mentioned below are also there.
a. Powder coating plant with 2680 sq.ft. area
b. Acid treatment tank with 1400 sq.ft. area
c. Packing section 1400 sq.ft. area
d. Showroom 3400 sq.ft. area
So, the overall plant area is 31130 sq.ft.
4.3.1.2. Building Sketch
The Lighting layout of Machinery Plant A and Physical layout of Machinery Plant A are shown
below.
Fig.4: Physical layout of Machinery Plant A
Fig.5: Lighting layout of Machinery Plant A
Fig.6: Single Line Diagram of Power Supply to Plant A
4.3.1.3. Equipment Details
Tab.1: Equipment Details
The total connected load of the plant is 335.51kW.
4.3.1.4. Energy Consumption Details
The monthly energy consumption details of the year 2020, is shown in the Tab.2.
Tab.2: Monthly Energy Consumption details of 2020
The daily working hours of SILK is 16 hours and with that the annual energy consumption of
2020 is 1052287.36 kWh.
Fig.7: Monthly Energy Consumption of 2020
4.3.1.5. Energy Usage Index
The Energy Usage Index is the index value obtained by the annual energy consumption by the
total area of the plant.
Energy Usage Index =
annual energy consumption
total area of the plant
Energy Usage Index =
1052287.36 kWh
31130 sq. ft. = 33.802
4.3.2. Site Visit work
In this audit process, with the basic information about the plant, more details of the site are
obtained by gathering detailed information. This detailed information is gather ed by direct
visiting of the site and systems available in the plant. Along with that, direct interactions with
the plant operators could get very elaborated details of the existing systems. During the visit
a comparison can be done with the data in the documents and the actual plant. After this visit
a detailed genuine report can be made by the additional measurements and data gathered
from the visit.
4.3.3.Post-Site Work
This is final process of audit processes, where the auditor sorts out all the data gathered and
process it to find out the areas where energy can be saved. This process is basically an
identification of energy losses. In this stage, a detailed and compiled report is submitted to
the management and the management will send the feedback to the auditor.
In SILK, better energy efficient methods can be adopted in the existing system.
The conventional lighting systems can be replaced with energy efficient LEDs.
All the motors used in the different machineries can be regulated by Variable Frequency
Drives, which runs the motors energy efficiently.
4.4. Define the Energy Conservation Measures
Energy conservative Measures could be defined as undertaken initiatives for the purpose of
mitigating the energy that is consumed by the various installed systems and equipment in a
motor or a chemical industry. In SILK, such measures could include a number of methods and
work related to motored parts, pumps, air compressors, fans, and other equipment. The
measures that could be taken for ensuring the conservation of energy are:
4.4.1. Replacement, renewal and up gradation:
In SILK, replacement of the old, outdated equipment and systems could further lead to less
usage of electricity and energy consumption. This would help to reduce the expenses on the
utility bills of the utility. The following Energy conservation measures (ECM) could be
adopted:
a. Adding of sensors and in-built timers to whole Lighting system
b. Variable Frequency Drives for speed could be adopted in Air Compressor
motor, Gantry crane motor and pump.
c. Treatment of pumping of water
d. Automation the areas of manufacturing
3.4.2. Reclamation and reconstruction:
Repair of the broken-down machineries would add life to the asset and thus facilitate
reduction of the costs related to the maintenance (Mirzania, 2019). Such decisions would help
in reducing the emission of carbon dioxide and other harmful gases and components into the
air.
4.4.2. Improvement and enhancement of the equipment:
Installation of equipment which would aid in the process of energy conservation could be
used such that the value of the assets could be increased thereby improving the comfort of
occupancy of the various systems involved (Andersson, 2019).
Tab.3: Savings on Energy Consumption after suggested changes
Fig.8: Energy savings after making suggested changes
5. ENERGY DATA ANALYSIS
Energy analytics can be defined as the methods and the processes involved in the gathering
of electrical and energy consumed data with the assistance of software for the purpose of
0
50000
100000
150000
200000
250000
Air compressor Yard Lamp Overhead Gantry
Crane 6 Ton
Pump Plant Lighting
Energy Savings
Power Consumption (kWh) Power Consumption after measures (kWh) Energy Savings
assisting the energy suppliers to promote, analyse, supervise and optimise energy related
Key potential indicators like costs related to production, consumption, distribution.
Tab.4: Analysis of Energy Consumption data
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
ELECTRIC UNIT COST RS/KWH
Fig.9: Analysis of Energy Consumption data
6. RISK MANAGEMENT PROCESS
The risk management process consists of the process of identifying the probable risks and
assessing the risks, treating the risks and further reporting the risk by follow -up. The risks
related to the conservation of the energy and the other sources such as the natural gas could
be identified and various methods could be adopted for the purpose of mitigating those risks
and safeguarding the objectives of the organisation with the motive of implementing growth
and reliability in the decisions of the organisation (Gazprom-energy.co.uk, 2019).
7. CHEAPER INVESTMENT IS USUALLY NOT THE MOST ECONOMICAL
CHOICE
The cheaper investments are not always the most economical investment decisions.
Investments regarding the installation of the machineries and the energy conservation
equipment could be taken not only from the perspective of promotion of growth and
effectiveness but at the same it could not be from sources that provide low and cheap quality
of such machineries as it leads to the disruption and excessive consumption of the time and
energy. Such decisions could lead to the degrading the quality of the air in the environment
and are a hindrance in the management ways of promoting a safer environment for the
employees and the workers working in such factories and units (Hilorme, 2018). The most
economical choices that could be made are not always from the sources of investment that
are cheaper but from the analysis of the best possible method after scrutiny and deep theory
observation and implementing the correct methods (Reynolds,2018). According to the Energy
Conservation Act, 2001, Energy audit of the company means the verification, analysis and the
monitoring the uses of the energy, which may include submission of the reports of the
technical. It may contain recommendation to improve the energy efficiency for the benefit of
the cost analysis.
The cost of the life cycle has the various conversation of the energy to measure the calculate
using the method of the simple payback. The formula may be used,

Table xxxxx: Simple Payback Period of Some Equipment
(Source: Developed by Researcher)
Simple payback period is a method to calculate life of an asset. Table 3 discussed about some
manufacturing equipment and payback period and saving that enjoyed by company
discussed. Payback period of Motor Engine has been highest among the equipment in above
table.
8. JUSTIFYING THE CHOICE IN MAKING INVESTMENT DECISIONS
The choice of investment could be made from the detailed picture of the organisation’s long
term and short-term goals of the organization and the goals for which the industry stands for.
The efficient and effective usage of equipment could be achieved from the proper allocation
of resources into the management decisions (Yao, 2018).
Fig. 1 Plan-Do-Check-Act model
Plan
Check Do
Act
ISO50001
Plan Do Check Act
72%
14%
8%
6%
Significant Energy Use
Motors 72% Boilers 14% Lighting 8% Freezer 6%
11. CONCLUSION
The energy audit report can be concluded after the detailed observation of the various
equipment used in the manufacturing of organisation. The chemical industry and the
amount of energy that they consume for conducting the daily operations can be harmful for
environment. Energy could be used efficiently for effective performance from the various
departments and units using reliable measures.
12. REFERENCES
Adewale, A.A., Adekitan, A.I., Idoko, O.J., Agbetuyi, F.A. and Samuel, I.A., 2018. Energy audit
and optimal power supply for a commercial building in Nigeria. Cogent Engineering, 5(1),
p.1546658.
Andersson, E., Karlsson, M., Thollander, P. and Paramonova, S., 2018. Energy end -use and
efficiency potentials among Swedish industrial small and medium-sized enterprises–A
dataset analysis from the national energy audit program. Renewable and Sustainable Energy
Reviews, 93, pp.165-177.
Cooremans, C. and Schönenberger, A., 2019. Energy management: A key driver of energyefficiency investment?. Journal of Cleaner Production, 230, pp.264-275.
Gazprom-energy.co.uk, 2019, Which UK businesses use the most energy? Available at
https://www.gazprom-energy.co.uk/blog/which-businesses-use-the-most-energy/
(Accessed on 19th April 2022)
Hilorme, T., Zamazii, O., Judina, O., Korolenko, R. and Melnikova, Y., 2019. Formation of risk
mitigating strategies for the implementation of projects of energy saving technologies.
Academy of Strategic Management Journal, 18(3), pp.1-6.
Kontokosta, C.E., Spiegel-Feld, D. and Papadopoulos, S., 2020. The impact of mandatory
energy audits on building energy use. Nature Energy, 5(4), pp.309-316.
Linjordet, R., Rodriguez, D.G.P., Tesfai, M., Prestvik, A.S., Modiselle, S., Magama, P. and
Moeletsi, M., 2020. Promoting sustainable biogas technology development through
integrated food and energy systems. In The Bioeconomy Approach: Constraints and
Opportunities for Sustainable Development (pp. 189-210). Routledge.
Ludin, N.A., Junedi, M.M., Affandi, N.A.A., Ibrahim, M.A., Sopian, K., Teridi, M.A.M., Sepeai, S.,
Su’ait, M.S. and Haw, L.C., 2019. Energy efficiency action plan for a public hospital in Malaysia.
Alam Cipta, 12(Special Issue 1), pp.73-79.
Merabtine, A., Maalouf, C., Hawila, A.A.W., Martaj, N. and Polidori, G., 2018. Building energy
audit, thermal comfort, and IAQ assessment of a school building: A case study. Building and
Environment, 145, pp.62-76.
Mirzania, P., Ford, A., Andrews, D., Ofori, G. and Maidment, G., 2019. The impact of policy
changes: The opportunities of Community Renewable Energy projects in the UK and the
barriers they face. Energy Policy, 129, pp.1282-1296.
Mohite, S. and Maji, S., 2020. Importance of energy audit in diesel engine fuelled with
biodiesel blends: review and analysis. European Journal of Sustainable Development
Research, 4(2), p.em0118.
researchgate.net, 2022 EnergyManagement Study: A Proposed Case of Government Building
Available at: https://www.researchgate.net/figure/Energy-Audit-Process_fig1_279866993
(Accessed on 19th April, 2022)
Reynolds, D., Baret, F., Welcker, C., Bostrom, A., Ball, J., Cellini, F., Lorence, A., Chawade, A.,
Khafif, M., Noshita, K. and Mueller-Linow, M., 2019. What is cost-efficient phenotyping?
Optimizing costs for different scenarios. Plant Science, 282, pp.14-22.
smartsheet.com, 2022 Energy Process Available at:
https://www.smartsheet.com/operational-audit-process (Accessed on 19th April, 2022)
Tetiana, H., Inna, N., Walery, O.K., Olga, G. and Svetlana, D., 2018. Innovative model of
economic behavior of agents in the sphere of energy conservation. Academy of
Entrepreneurship Journal, 24(3), pp.1-7.
Yao, R., Costanzo, V., Li, X., Zhang, Q. and Li, B., 2018. The effect of passive measures on
thermal comfort and energy conservation. A case study of the hot summer and cold winter
climate in the Yangtze River region. Journal of Building Engineering, 15, pp.298-310.