Chapter 16: Energy Management and Audit in Best Exports
16.1 What Is Energy?
Energy is the ability to do work and work is the transfer of energy from one form to another. In practical terms, energy is what we use to manipulate the world around us, whether by exciting our muscles, by using electricity, or by using mechanical devices such as automobiles. Energy comes in different forms - heat (thermal), light (radiant), mechanical, electrical, chemical, and nuclear energy.
16.2 Definition & Objectives of Energy Management:
The fundamental goal of energy management is to produce goods and provide services with the least cost and least environmental effect. The term energy management means many things to many people. One definition of energy management is:
"The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions"
(Cape Hart, Turner and Kennedy, Guide to Energy Management Fairmont press inc. 1997)
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 costs 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 minimize energy costs / waste without affecting production & quality • To minimize environmental effects
16.3 Energy Audit:
Energy Audit is the key to a systematic approach for decision-making in the area of energy management. It attempts to balance the total energy inputs with its use, and serves to identify all the energy streams in a facility. It quantifies energy usage according to its discrete functions.
Industrial energy audit is an effective tool in defining and pursuing comprehensive energy management program. As per the Energy Conservation Act, 2001, Energy Audit is defined as;
"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".
16.3.1 The Need for an Energy Audit;
In any industry, the three top operating expenses are often found to be energy (both electrical and thermal), labor and materials. If one were to relate to the manageability of the cost or potential cost savings in each of the above components, energy has invariably emerged as a top ranker, and thus energy management function constitutes a strategic area for cost reduction. The need for an Energy Audit is given below;
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 "bench-mark" (Reference point) for managing energy in the organization and also provides the basis for planning a more effective use of energy throughout the organization.
1. Energy Audit helps to understand more about the ways energy and fuel are used in any industry, 2. It also helps in identifying the areas where waste can occur and where the scope for improvement exists. 3. The Energy Audit gives a positive orientation to the energy cost reduction, preventive maintenance and quality control programs which are vital for production and utility activities. 4. An audit program assists in keeping focus on variations which occur in the energy costs, availability and reliability of supply of energy, deciding on appropriate energy mix, identifying energy conservation technologies, retrofit for energy conservation equipment etc. 5. Also, keeping the current power crisis Pakistan is facing in view, the need for consuming the minimum amount of energy to incur the minimum cost on products is the current need of every industry. 6. In general, Energy Audit is the translation of conservation...
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