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Energy Accounting and

Analysis
Module Code: MMH213159

Background: Energy
Accounting
Energy accounting can be simple or complex,
but it must be tailored to your needs by
Understanding how energy is used, you can
identify and prioritise energy management
activities
An awareness campaign and an aggressive
operation and maintenance plan
Can help cut cost without expensive
investment in technology

Energy accounting,
purpose
Energy accounting is a formal process of
providing long-term organisation and
monitoring
of
utility
cost
and
consumption data for a facility. It is also
useful to track energy use and demand at
equipment level
Gain the attention of senior management
by increasing their understanding of
efficient operation as part of asset
management.

What Energy Accounting


Can do?
The basis of energy accounting is recording energy use, it can
help you to;

Account for current energy use (where and how much)


Identify areas with greatest savings potentials
Justify capital expenditure decisions
See the results of your conservation efforts
Gain management support
Detect increased consumption
Identify billing errors
Track fluctuation in energy price and identify the best time to
purchase
Compare energy efficiency

Evaluation of energy
consumption
The energy auditor starts at the utility meter
to locate all energy sources coming into the
facility then;
Identify the energy stream for each fuel into
discrete functions (e.g natural gas, etc..)
Evaluate the efficiency of each of those
functions
Identify the energy and cost saving
opportunities

Energy Consumption
World energy consumption has risen by 45% since
1980 and it is projected to be 70% higher by 2030
Industry and commercialbuildings, on the other
hand account for more than half of energy
consumption today.
Energy Efficiency is the quickest, cheapest and
cleanest way to reduce energy consumption and
achieve greenhouse gas emission to meet Kyoto
targets.

Energy Consumption
The World Energy Council (WEC)
predicts that 70% of this growth will
be as a result population and
economic
growth
in
developing
countries (WEC 2011), with only 30%
coming from countries under the
Organisation
for
Economic
Cooperation and Development (OECD),
considered as developed economies.

Definition: Energy
Consumption
Energy consumption is expressed

in
kilowatts hours (kWh) and can be
defined as the power (kW) consumed
by an appliance in a particular period
of time (hours), (Shubert and Leyba,
2009). Mathematically it can be
expressed as;
E=PT

Energy Consumption
According to a report produced by Jennic in December
2009, the efficient use of energy has become a global
need.
The climate change has also forced to over-ride the
motivation of using the electricity smartly.
Moreover, increase in the price of energy and
reduction in fuel (coal and oil) has increased the
demand for revaluation of energy consumption.
This has led to the concept of smart energy (SE).
Smart energy is clever approach to the efficient use of
energy. It is a methodology which should be adopted
by the user and the energy provider. Using the home

Steps taken for accurate


evaluation of energy
consumption

Collect copies of all monthly utility bills and delivered fuel invoices
Sort utility bills by building, organise them into 12 month blocks
using metre reading dates
Locate all the metres and sub-metres in each site/building
Determine the space being served by each metre
Calculate the condition area (S.q/F.t) for each building
Obtain historical energy data to establish a baseline year (obtained
this from utility bill company
Obtain degree day data (from utility company or met office)

Set-up Spreadsheet, Energy


Use Index, Conditioned area
Set up spreadsheet and enter sum, calculate
benchmarks and graph all the utility information.
Record energy units (kWh, Therms, gallons, etc)
The Energy Use Index (EUI) is the most common
means of expressing total energy consumption for
each building. EUI is expressed in Btus/Sq, Ft/Yr.
Calculate the Btus per square foot. This can be
done by referring to the dimension in the blue
print or measuring the outside dimension
(Length*Width ) and multiply this by the number
of floors

Year

Sample energy
accounting form

Natural Gas
Total
Gas
Gas
(B)
Electri Elect Electri Electric
Usage
Unit
Gas
(A)
Cost
Days Electric c
ric
c Unit MMBtu
in
Gas Cost
MMBtu MMBtu of
in
Usage Deman Cost Cost KwHx.0 Load Therm Cost $/Ther Therms Consum Ener
Month Billing in kWh d kW $
$/kWh 03413 Factor s
$
ms
/x.10 ed
gy
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Nov

Annual
Total

Energy Use
Index

Electricity

(C) EUI
Btu/Sq.
Ft

(D) Cost
$/Sq.Ft

Data entry calculations


A.Transfer consumption and cost information from energy bill to data sheet. Add column for other fuels as needed.
B.Convert kWh and Therms to MMBtu using the formular at the top of each column.
C.Calculate fuel unit costs and electric load factor using formulas at the top of each column.
D.Total electric and fuel MMBtus consumed and cost of each month and enter the TOTAL column.
E.Total of column (calculate average demand, unit cost and lead factor)
F.Total annual energy index in Btu/S.q/F.t/Yr by multiplying total MMBtu consumed (column A) by 1,000,000 then divide by the building gross square footage.
G.Calculate dollar per square foot by the total cost of energy (column B) by the building square footage.

Electric Demand
Care should be taken to distinguish between billing and actual
demand on the utility bill
Actual demand is the figure registered on the meter and
should be used to analyse power requirement and load factor
Billing demand is the amount of demand for which the facility
is actually billed (the figure may be different from the actual
demand due to the various schedule rates).
The rate schedules; include ratchet clause, power factor
adjustment at no charge and can cause billing and demand
difference. A more detailed structure will be discussed later
(under utility bills)

Electricity Costs
The Kwh, kW and power factor charges separately and can be used
for evaluating the impact of demand and power factor

High demand cost can be lowered by alternating run times of the pieces
of equipment
The demand and power factor measures saves little energy, the
significant cost saving and relatively short payback periods makes them
attractive measures to include in audit analysis

Load Factor
A measure of electrical efficiency of a
facility can be found by calculating the
load factor
It is the relationship between the peak rate
of consumption to the total consumption
for the period. For electricity, it is the
relationship between kWh and kW demand
and the ideal load factor is always close to
1.0.
kWh
Load Factor
kW Number of hours

Load Factor (LF) Facts


The ideal load factor should be as close to 1 as possible.
Most facilities operate less than 24 hours a day, so
typically the LF should be lower than the maximum
For example if a building operates 12 hours a day then
the highest load factor should be 0.50
It is important to monitor the load factor and establish
what is normal for each facility and meter, noting the
significant changes in kWh consumption and kW demand
ratio

Exercise 1
What is the load factor for a
continuously operating facility that
consumed 800,000 kWh of energy
during a 30 day billing period and
establish the peak demand of 2000
kW?

Graphs and reports


Once energy data is collected, it must
be made comprehensible to the energy
editor for the purpose of analysis
Creating graphs and pie charts provides
essential information. The consumption
and cost data trends can give us an
insight on how each facility use energy

Energy data analysis


Some systems operate all year long while
some operate during the summer or the
winter months.
Annual energy consumption is broken
down into base and seasonal load and
equipment is fit into each category
This help identify which equipment are
most energy intensive so measure can be
evaluated to reduce consumption

Base and Seasonal loads


Base loads are energy using systems that
consume a continuous amount of energy
throughout the year. This can be established by
drawing a horizontal line
Seasonal load can be as a result of changes in
the weather or operation of a building such as
school season etc..
High seasonal loads may reveal an
opportunity to reduce consumption by making
improvements to for example heating, air
conditioning temperature controls.

Electricity Consumption

The graph above shows the upward and downward trends in kWh

Consumption Trends
To evaluate consumption trend data,
watch for upward and downward trends
in kWh, demand, natural gas or costs
Another useful method is the Rolling 12month method, where the monthly data
is as a rolling summary, the new 12
month total is calculated each month by
dropping the oldest month and adding
the new month.

Electricity Use Trend


This shows the monthly
consumption as well as the
rolling annual trend on a
separate Y axis. This is a
good graph for energy
auditors to see the overall
consumption trend of the
facility. A graph of this type
will remain relatively flat if
no significant changes in
energy occur. A gradual
increase my indicate that
occupancy or production
has increased or vice
versa.

Increase Consumption
Once the end user profiles have been estimated the auditor will
use this information to develop an initial list of potential Energy
Conservation Measures (ECMs). The most common ECMs found
in buildings typically fall into the following categories.

Building Operations
Lighting Systems
HVAC Systems
HVAC Distribution Systems
Energy Management Systems
Building Envelope
Power Systems
Water Heating Systems
Heat Recovery Opportunities

Energy Use, ECM


Energy use in
Schools
HVAC
Lighting
Food Services
Hot Water
Special
Functions
Energy use in
Super Stores
Refrigeration
Lighting
Fans and AntiSweat Device
HVAC
Special
Functions

Range
Norm
(%)
(%)
45 to 65
65
10 to 20
15
5 to 10
7
2 to 5
3
0 to 20

10

Range
(%)
40 to 50
17 to 24

Norm
(%)
45
20

10 to 15
8 to 14

12
12

Energy use in Office Building


Space Heating
AIR conditioning

Range Norm
(%)
(%)
45 to
65
50
20 to
30
25
15 to
25
20

Lighting
Special Functions (lights,
elevator, general power, security
lights, refrigeration, cooking)
5 to 10

Energy use in Retail Stores


Lighting

Range Norm
(%)
(%)
40 to
70
60
20 to
50
30

HVAC
Special Functions (lights,
An ECM may be realised earlier by implementing
operation
andpower,
maintenance
(O&M) measures
elevator,
general
security
or incorporating available technologies through
the installation
of ECM.
lights,
refrigeration,
cooking)
5 to 20 10
8 to 12

10

Building Operations
Huge amount of energy is wasted in building because equipment are
operated improperly or unnecessarily.
When a building is not occupied the building or operation systems
should be turned off or reduced to a minimum
The following systems can be curtailed during unoccupied periods :
1.
2.
3.
4.
5.

HVAC systems
Water heating systems
Lighting systems
Escalators and elevators
Other equipment and machineries

Lighting Systems
Account for a significant portion of electricity
consumption in commercial building
Energy is saved and electric demand can be
reduced by reducing the illumination levels,
efficiency, curtailing operating hours.
Reduction of lighting energy can increase the
building heating, since inter-heat gain is
reduced

HVAC Systems
It is made up of energy conversion equipment, which
transforms electrical or chemical energy to thermal
energy, and distribution and ventilation system which
transport the thermal energy and supply fresh
outdoor air to the conditioned space.
Energy is saved in HVAC by reducing ventilation,
improving performance space conditioning
equipment such as boilers, chillers, air conditioners
and heat pumps, using energy efficent cooling
system and reducing the occurrence of re-heating or
re-cooling

HVAC Distribution
Systems

It is a network of pipes, ducts, fans, pumps,


grills etc..
Energy is required by the fans and pumps that
transport the working fluid
Conservation opportunities for the distribution
system falls into two areas:
Reduction of energy required to transport fluid
Reduction of energy losses during transport

Energy Management
Control System (EMCS)
Energy can be saved by automating EMCS.
EMCS can efficiently control, air conditioning,
heating, ventilation and other equipment
It select the optimum equipment operating
times and set-points as a function of
demand, time, weather condition, occupancy
and cooling requirements.

Basic control principles


for energy conservation
Operate equipment only when
needed
Eliminate minimise simultaneous
heating and cooling
Supply heating and cooling
according to actual needs
Supply heating and cooling from the
most efficient sources

Building Envelope
The primary methods of reducing heat exchange
through roofs, walls, floors, ceilings is by adding
insulation
To control or reduce heat gain through the roof or
glazing area
Installation of storm windows, multiple glazed
windows, low glazed windows will also reduce heat
conduction and long wave radiation through glazing
areas

Power Systems
Power factor correction are cost effective when utility
penalties are imposed
Peak power demand can be reduced by load shedding,
cogeneration or cool storage system that produce cold
water or ice during off peak
Determine the building demand profile, several weeks of 15minute interval data should be taken/recorded with a meter.
Measurement should be both in the cooling and heating
season

Water Heating Systems


Heating and distribution of hot water consumes
less energy than space conditioning and lighting
Case cases such as hospitals, restaurant,
kitchens, laundries, water heating amount to a
substantial energy consumption
Water heating energy is conserved by reducing
load requirements, distribution losses, and
improving the efficiency of the water heating
system

Heat Recovery
Opportunities
Heat reclaim system can be used to reduce energy
consumption, as well as peak power demand when
applied properly
The effectiveness depends on the quantity and
temperature of heat available for recovery
Opportunities for recovery exist when there is a
need to reject constant supply of high temperature
liquid such as air, water or refrigerant

Industrial Audit
opportunities
The audit process determines the amount of energy required for each
process function and identifies conservation opportunities . Several
audit are required to construct industrial energy use The first two
are;
1. Envelop Audit
2. Functional Audit
Both of these audit are similar to the audit in commercial buildings
but the focus of the improvement may vary vastly.
For example: in an industrial plant the envelop may not be well
insulated but the plant may be very thermally heavy. Adding
insulation may hinder the ability to reject excess heat.

Envelop and Functional


Audit
Envelop Audit
Just like the
commercial audit
this audit survey the
building envelop for
losses and gains
due to leaks, entry
bay doors, building
construction, glass,
lack of insulation
etc

Functional Audit
This audit determines
the amount of energy
required for particular
building functions and
identifies energy
conservation
opportunities in the
office plant HVAC
systems etc..similar to
commercial buildings

Standard Graphs and


Data
Standard graphs
(pie, bar orAnalysis
line) include the following;

Natural gas and electricity use by month (MMBtu)


Cost of fuel per month
Electricity consumption per month (kW)
Electric demand per month (kWh)
Energy use index
Fuel consumption

Heating
Base load

Air conditioning
Base load

January

December

January

December

Industrial Energy Use

Electric
ity
Diesel
Oil
Gasolin
e
Natural
Gas

30%

3000 MMBtu

Electricity

49%

12%

1200 MMBtu

Diesel Oil

13%

8%

800 MMBtu

Gasoline

9%

50%

5000 MMBtu

Natural Gas

29%

50,000.00

12,500.00

8,500.00

29,000.00

The chart show a typical example of energy use in an industrial plant. It is important
To account for the cost and how energy is used within the plant.

Energy Distribution
Profile

The chart show how much energy is used for each function such as lighting, process,
building, plant heating and process ventilation

Steam Distribution
Profile

Steam distribution Nodal Diag

STEAM
100%

Building Heat
30%

The chart shows the distribution of steam by function. The nodal diagram illustrate
an alternative representation of the steam distribution profile. These diagrams can
also assist the auditor in explanation of energy flow and efficiency improvement
strategies

Example Energy Use


Profiles
Energy use in Die Casting Plants
Housekeeping
Energy
Space heating
Air conditioning
Lighting
Domestic hot water
Total
Process Energy
Melting Hearth
Quiet Pool
Moulding Machines
Air compressors
Other processes
Total

Percent
(%)
24
2
2
2
30

30
20
10
5
5
70

Energy use in Bakeries


Housekeeping
Energy
Space heating
Air conditioning
Lighting
Domestic hot water
Total
Process Energy
Baking oven
Pan washing
Mixers
Freezers
Cooking
Fryers
Proof boxes
Other processes
Total

Percent
(%)
21.5
1.6
1.4
1.8
26.3

49
10.6
4.1
3.3
2
1.8
1.8
1.1
73.7

Summary
An important part of the overall audit program is to be able to determine
where you are going
Establish benchmarks to determine a realistic estimate of potential energy
savings, disaggregate energy use into discrete functions, establish
baseline to compare post- retrofit energy usage and calculate energy
savings
Gathering and organising data information as part of the audit process
Monitor production efficiency and answer question posed by plant
engineers. Such questions are

How much have we saved as a result of energy efficiency improvements?


If we are conserving energy, why is our total energy consumption increasing?
Whys is our consumption changing?
Why is our energy bill isnt decreasing
How much of our energy consumption is directly related to production

By addressing these questions, we could generate awareness of how


energy is consumed and providing information that can lead to saving
through behavioural changes resulting from increased understanding

THANK YOU
QUESTIONS?

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