Energy management includes planning and operation

of energy production and energy consumption units.

Objectives are resource conservation, climate protection and

cost saving, while the users have permanent access to the
energy they need.

It is connected closely to environment management

,production management, logistics and other established
business functions.

The Guidelines released a definition which includes the

economic dimension: “Energy management is the proactive,
organized and systematic coordination of
procurement, conservation , distrubitation and use of energy
to meet the requirements, taking into account environmental
and economic objectives”
Potential energy strategies
According to guidelines there are the following energy
strategies:

•Passive Strategy: There is no systematic planning.

The issue of energy and environmental management is
not perceived as an independent field of action. The
organization only deals with the most essential
subjects.

•Strategy of short-term profit maximization: The

management is concentrating exclusively on measures
that have a relatively short payback period and a high
return. Measures with low profitability are not
considered.
Objectives of Energy Audit
The Energy Audit provides the vital information
base for overall energy conservation program
covering essentially energy utilization analysis and
evaluation of energy conservation measures.
It aims at:-
•Identifying the quality and cost of various energy
inputs.

•Assessing present figure of energy expenditure in

different cost centers of operations.

•Relating energy inputs and production output.

•Strategy of long-term profit maximization: This strategy
includes that you have a high knowledge of the energy price
and technology development. The relevant measures (for
example, heat exchangers or power stations ) can have
durations of several decades. Moreover, these measures can
help to improve the image and increase the motivation of the
employees.

•Realization of all financially attractive energy measures: This

strategy has the goal to implement all measures that have a
positive return on investment.

•Maximum strategy: For the climate protection one is willing to

change even the object of the company.
Energy strategies

A long-term energy strategy should be part of the

overall strategy of a company. This strategy may
include the objective of increasing the use of
renewable energies.

Furthermore, criteria for decisions on energy

investments, such as yield expectations, are
determined.

By formulating an energy strategy companies have

the opportunity to avoid risks and to assure a
competitive advance against their business rivals.
•Identifying potential areas of thermal and
electrical energy economy.

•Highlighting wastage’s in major areas.

•Fixing of energy saving potential targets

for individual cost centers.

•Implementation of measures for energy

conservation & realization of savings.
Energy strategies of companies
Many companies are trying to promote its image and
time protect the climate through a proactive and
public energy strategy.

General motors (GM) strategy is based on

continuous improvement.

Furthermore they have six principles: e.g. restoring

and preserving the environment, reducing waste and
pollutants, educating the public about environmental
conservation, collaboration for the development of
environmental laws and regulations.
The energy strategy of Volkswagan (VW) is
based on environmentally friendly products
and a resource-efficient production according
to the "Group Strategy 2018".

Almost all locations of the Group are certified

to the international standard ISO 14001 for
environmental management systems.
An energy audit is an inspection survey an
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). In commercial and industrial real
estate, an energy audit is the first step in
identifying opportunities to reduce energy
expense and carbon footprints.
Principle
When the object of study is an occupied building
then reducing energy consumption while
maintaining or improving human comfort, health
and safety are of primary concern. Beyond
simply identifying the sources of energy use, an
energy audit seeks to prioritize the energy uses
according to the greatest to least cost effective
opportunities for energy savings.
Types of energy audit
The term energy audit is commonly used to describe a broad
spectrum of energy studies ranging from a quick walk-through
of a facility to identify major problem areas to a
comprehensive analysis of the implications of alternative
energy efficiency measures sufficient to satisfy the financial
criteria of sophisticated investors.

Numerous audit procedures have been developed for non-

residential (tertiary) buildings (ASHRAE; IEA-EBC Annex
Krarti, 2000).

Audit is required to identify the most efficient and cost-effective

Energy Conservation Opportunities (ECOs) or Measures
(ECMs). Energy conservation opportunities (or measures) can
consist in more efficient use or of partial or global replacement
of the existing installation.
When looking to the existing audit methodologies developed in
IEA EBC Annex 11, (2000), it appears that the main issues of
an audit process are:
•The analysis of building and utility data, including study of the
installed equipment and analysis of energy bills;

•The survey of the real operating conditions;

•The understanding of the building behaviour and of the

interactions with weather, occupancy and operating
schedules;

•The selection and the evaluation of energy conservation

measures;

•The estimation of energy saving potential;

•The identification of customer concerns and needs.

Generally, three levels of analysis can be
outlined (ASHRAE):
•Level 0 – Benchmarking: This first analysis
consists in a preliminary Whole Building
Energy Use (WBEU) analysis based on the
analysis of the historic utility use and costs
and the comparison of the performances of
the buildings to those of similar buildings.
This benchmarking of the studied installation
allows determining if further analysis is
required;
•Level I – Walk-through audit: Preliminary analysis
made to assess building energy efficiency to identify
not only simple and low-cost improvements but also a
list of energy conservation measures (ECMs, or energy
conservation opportunities, ECOs) to orient the future
detailed audit. This inspection is based on visual
verifications, study of installed equipment and operating
data and detailed analysis of recorded energy
consumption collected during the benchmarking phase;
•Level II – Detailed/General energy audit: Based on
the results of the pre-audit, this type of energy audit
consists in energy use survey in order to provide a
comprehensive analysis of the studied installation, a
more detailed analysis of the facility, a breakdown of
the energy use and a first quantitative evaluation of
the ECOs/ECMs selected to correct the defects or
improve the existing installation. This level of analysis
can involve advanced on-site measurements and
sophisticated computer based simulation tools to
evaluate precisely the selected energy retrofits;
•Level III – Investment-Grade audit: Detailed
Analysis of Capital-Intensive Modifications
focusing on potential costly ECOs requiring
rigorous engineering study.
Preliminary energy audit
•Establish energy consumption in the organization
•Estimate the scope for saving
•Identify the most likely (and the easiest areas for
attention
•Identify immediate (especially no-/low-cost)
improvements/ savings
•Set a ‘reference point‘
•Identify areas for more detailed
study/measurement
•Preliminary energy audit uses existing, or easily
obtained data.
Steps for Energy Management and Energy
audit….
•Analysis of energy use
•Identification of energy projects
•Cost benefit analysis
•Action plan to set implementation priority
 A Package of Three Instruments
The Finnish set-up

Reporting
boundaries 4,1 TWh/a
Voluntary
Agreements

1,5 TWh/a
Energy 0,5 TWh/a
Audits Subsidies
 The Finnish Energy Auditing Scheme (1)

Energy and Climate Strategy

Energy EfficiencyProgramme RES-Programme

Voluntary
Agreements Energy Auditing Scheme

Market

Free Subsidised
The Finnish Energy Auditing Scheme (2)

THE ADMINISTRATOR

THE OPERATING AGENT Financing

Marketing

Reporting
THE AUDITOR

Guidance

THE CLIENT
 An Energy Audit
In general
• gives adequate knowledge of the existing energy
consumption profile
• identifies factors affecting the energy consumption
• brings up cost-effective energy saving opportunities

The Core Audit

• makes an evaluation of the present consumption
• identifies and quantifies the feasible energy saving
possibilities
• produces a report
Programmes
Environmental programmes

Energy efficiency programmes

Energy Other
Audit Program-
Program- mes
mes with EA

Activities with
Energy Audits
TARGETS OF ENERGY AUDITING

 Total picture of the use of energy, its distribution and costs

 Energy saving potential and the possibilities to use renewable

energy sources

 Listing of all economically feasible proposals for energy

saving measures (single pay-back time < 10 a)

Nitro gen factory L igh tin g Co mp ressed air Air co oling Ven tilation Oth er

2 60 [kW ] 1 90 [kW ] 8 0 [k W] 2 20 [kW ] 6 5 [k W] 2 00 [kW ]

E lectricity
3 16 5 [k W]

5 30 [kW ] 5 0 [k W] 2 20 [kW ]
TABLE 2
He at recov ery

3 0 [k W]
2 60 0 [k W]
Savings Costs Payback
6 90 0 [k W] He at recov ery bo iler
EUR EUR time (y)
Direct pro cess remov als
4 00 0 [k W]
Raw material
p repro cessing
1 40 0 [k W]
Measure 1
5 20 [kW ]

Ox yg en b urn er

5 50 [kW ] 1 63 0 [k W] L ehr
Measure 2
Flo at bath
1 32 0 [k W]
1 11 0 [k W]

Meltin g 3 60 0 [k W]
W ate r coo lin g
:
1 30 0 [k W]
1 38 0 [k W]
:
Na tu ral ga s 1 77 30 [kW ]

1 22 0 [k W] Total

1 06 20 [kW ] Ro om
The Finnish Energy Auditing Scheme (3)
Motiva – Key Functions in the Energy Auditing Scheme

DEVELOPMENT
AND MARKETING
TRAINING

QUALITY
MONITORING CONTROL
 The Finnish Energy Auditing Scheme (4)

Functioning in close co-operation

with the Ministry of Trade and Industry
Linking to other
systems
Implementation of the Directives on
• energy performance of buildings
• energy end-use efficiency and
energy services

Reporting International
co-operation
Information Information
System dissemination
Quality control
Planning Training of auditing reports
Development Authorisation
of Methods&Tools of auditors
 The Finnish Energy Auditing Scheme (5)
The link between the voluntary energy
1 Agreement
conservation agreements and
energy audits

2
Description of
energy consumption
Follow up,
3 Energy audits updates….
and analyses

4 Improvement
plans and
implementation

5 Annual reporting
Agreements and energy audits

Voluntary energy conservation agreement:

• significant carrier for energy audits in all sectors
except the transport sector

• partners to the agreements are “obliged” to carry out

energy audits and to reach a set coverage within a
certain time
Seppo Silvonen
12.12.2005
Energy auditing models for different
client groups

• Buildings: public and private services, apartments

• Industrial sites
- SME’s
- Process industry

• Energy sector
- Power plants
- District heating, plants and distribution
networks

• Transportation
 Audit Models
Other sectors: Power Plant District Heating

THE VOLUNTARY AGREEMENT SCHEME

Energy sector Energy Analysis Energy Audit

Industrial plants Energy

Process Industry COMMERCIAL
high energy Audit AUDITS
Energy Analysis
intensity Programme
Industrial
Energy Air
Industrial Updating
Audit
Analysis with
plants
industrial
Industrial
models
Energy
Audit
SME’s
Energy
Inspection Post-
Follow-up
Small buildings acceptance
Energy
service sector Energy
Audit
Audit
Building
Audit
Large buildings
service sector

Blocks of flats Energy Audit

Model being developed

Small
residential buildings

Model subsidised by the Ministry of Trade and Industry Model not subsidised
ENERGY CONSERVATION PROGRAMME

Estimated saving potentials with the proposed

measures by 2010:

Fuels Electricity

Heating of buildings 12 % 15 %

Industry 6% 3%

Transportation 9%

Other sectors 3% 4%
Energy Audits – Results
Savings potential
• service sector (appr. 1200 buildings)
Heat 15 %
Electricity 6%
Water 7%
• small and medium sized industry (appr. 190 buildings)
Heat and fuels 25 %
Electricity 8%
Water 11 %
• the saving potentials in the energy intensive industry
and power and heat sector are considerably smaller
Rules for Energy Audits subsidised by the Ministry
of Trade and Industry (MTI)

• Standard contents
• Proper scheme to be applied for the case in question
• Criteria to be met by the applicant of the subsidy
• Authorised auditors for HVAC and electrical
installations
• Cost limits
• Forms of application and payment of the subsidy
• Reporting procedure
• Subsidy level
 Direct government support

• The government finances the costs of the operating agent

(Motiva) of the Finnish energy audit program and gives
40…50 % support for the energy auditing project expenses

• 15…20 % subsidies for conventional energy saving

investments for companies who have joined the voluntary
Energy Conservation Agreements with the Government.

• Higher subsidies (20..25 %) has been granted for ESCO

investment projects at least until the end of the year 2004 by
the government
Profitability of the proposed energy saving
measures of 1 265 buildings
3,0

2,5 2,5
2,5
Savings potential(million €)

2,0

1,5

1,0 0,8

0,4 0,4
0,5
0,3 0,3
0,2 0,2 0,1
0,1
0,0
0,0
0 0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10
Pay back time (years)
Regional Energy Audits
meant for

• mapping the existing use of fuels and the potential for increasing
the use of RES in the production of heat and power in a munici-
pality or other region
• supporting the working out of the plan for RES in implementing
the voluntary energy conservation agreement

done by

• working out a regional energy balance

• estimating the available sources of renewable energy
• identifying facilities where the available sources of renewable
energy could feasibly replace the use of non-renewable energy
sources