Energy Audit identifies opportunities for financial savings by elimination of wasteful use of electricity, coal and fuel oil, without affecting the process or quality of product.

The first step in any energy management program is to conduct an energy audit. An energy audit is a systematic gathering and analysis of energy use information within a business. Once the data has been analysed the information can then be used to promote energy efficient practices in the areas of the business where they will prove to be most effective. Progress of any initiatives that are put in place can then be accurately monitored.

Need for Energy Audit

It has been established that Energy savings of the order of 5 to 20% are possible by optimizing use of Energy with better house keeping, low cost retrofitting measures and use of Energy efficient equipment at the time of replacement, renovation or upgradation. Indian industry consumes much more energy per unit production as compared to its counterparts in the developed countries.

An energy audit can be broken down into three basic steps;

• Step 1: Audit of historical data
• Step 2: Screening survey or walk-through audit
• Step 3: Detailed investigation and analysis.

Step 1: Audit of historical data:

The first step, audit of historical data, requires the auditor to identify and quantify each of the energy forms as well as establish a general trend or pattern in energy use over a number of years. Some of the things that should be covered at this point of the audit are; energy costs and consumption levels, seasonal patterns, a review of purchasing arrangements, comparison of energy consumption with output where appropriate, and a calculation of specific energy consumption.

Step 2: Screening survey or walk-through audit:

The screening survey or walk through audit is used to identify any immediate opportunities to reduce energy costs. This second step will also establish the feasibility for potential cost savings in each area of energy consumption and the priority for allocating resources. At this stage a monitoring and reporting procedure can be established.

At this stage it is a good idea to conduct a simple survey. The survey could involve a walk around the work place identifying areas where there seems to be excessive energy usage, or it could be conducted using a questionnaire or checklist. Getting other people involved will often identify areas in the business where energy savings can be made immediately at little to no cost.

When reviewing the energy use recording and reporting system it is important to identify what are the most readily available sources of information. Many offices that share a large building will not have the individual floors metered. In these cases it may be necessary to capture the information through the energy bills. This may require some cooperation from the finance or administration departments for larger businesses. All energy consumption should be recorded in consistent units, for example reporting electricity and gas in megajoules, to enable meaningful comparisons.

The final action in this step of the audit is to report a plan of action to management. It is important to develop a plan of action for management's approval in order to establish their commitment to identified energy management activities. It will also help promote the principle of energy management through the work place, having gained management's endorsement.

The plan of action itself should include things like;

• Immediate energy savings achievable
• Further investigation required for identifying savings which could be achieved through larger scale energy efficiency projects
• Problems in the controlling of energy costs and in collecting and reporting energy data
• An estimate of the costs of the business as usual scenario. That is outline what the future cost of energy use will be if no action is taken with regards to the identified potential savings
• A "Plan of Action" that covers in detail the most important areas of saving as identified through the data collection and survey. This should also include an indication as to what is the most efficient sequence of action in order to reduce energy costs.

Step 3: Detailed investigation and analysis:

The third major step in an energy audit is the detailed investigation and analysis. This step is based on the areas that were identified in Step 2 as requiring further investigation.

With results from this step and those obtained in the walk through survey a detailed energy management program for the business can be developed, or an existing program reviewed. Once a program or policy has been put in place it needs to be reviewed on a regular basis to make sure that it is achieving its objectives.