EPENG 308

ENERGY EFFICIENCY & MANAGEMENT

Eng H Chingosho
PhD (cand) , B.Eng (Hons), MSc (Ren-Eng), MZweIE (ZIE), E.C.Z (ZIM), CEM ®,
AEE (USA).

+263 0773 192 734 / [email protected]

 Basic Skills Required for Module
To successfully complete this module the student should have:

✓ Basic problem-solving skills

✓ Quick and accurate use of a hand calculator
✓ Ability to use basic algebra
✓ Ability to set up problem solution expressions and calculations from a
written problem statement.

• This module is designed to:

✓ Help participants become better energy managers, and to help exam‐takers

pass the exam.
✓ Much material on the exam is covered in the module lectures, but not
everything on the exam is covered in the lectures.
✓ Examinees students may find that their past experience and background
provide keys to some answers.
 Module Objectives
✓ To provide a thorough understanding of the broad concept of energy
management and energy auditing.
✓ To provide tools and knowledge necessary conducting energy auditing and
to have an efficient energy management plan
✓ To teach us to analyse and design an energy plan and policy.
✓ To train young student engineers into career energy managers for large
residential, commercial, and institutional buildings; for government buildings
and facilities; and for manufacturing plants and industrial facilities.
 Expected Outcomes
• At the end of the course, attendees should be able to discuss and
evaluate:
o Energy supplies, uses, and management in commercial and
institutional buildings and industries.
o How energy can be used more efficiently in commercial and
institutional buildings and industries.
o Relationships between energy and the environment in buildings, as
well as basic design concepts involved with construction of green
buildings and facilities.
o Different energy‐using systems and equipment for buildings and
manufacturing plants.
Scheduled Sections
• 1. Need for Energy Management • 4. Lighting System Basics and
and Energy Codes and System Improvements
Standards, Indoor Air Quality • 5. Electric Motors and DrivesJ.
• 2. Energy Purchasing,Economic HVAC Systems
Analysis and Life Cycle Costing • 6. Boilers and Steam Systems,
• 3. Electrical Systems and Electric Compressed Air and Pump
Energy Management Systems
• 7. Thermal Energy Storage and
CHP Systems
The Need for Energy
Management
Why are we here?
Three major Problems
Three global priorities dictate saving energy:

• 1. Environmental Quality ‐ Reduce global climate change & acid rain

• 2. Economic Competitiveness – Reduce costs and create jobs
• 3. Energy Security ‐ Reduce oil imports & balance of payments

None of these goals can be fully attained without an energy efficient

economy!!
Driving Factors for Business & Industry
• Environmental regulations
• Product quality improvement (KAIZEN, POKER YOKE, JIDOKA)
• Productivity improvement. (QFD,DFMA,DFSS)
• Energy ‐ relates to the other three
• Lean manufacturing
– Energy should be added as the 8th deadly waste.(CP, EECP)
• Total quality management (TQM)
– TQM, Quality control, Quality circles
– Ringfence energy costs out of overhead
Interface areas with Energy Management

• Sustainability
• Green buildings
• Energy efficiency and energy conservation
• Renewable energy
• Greenhouse gas reduction
• Carbon reduction
• Energy productivity improvement
• Energy cost reduction
Energy Management

• Energy management ‐ the use of engineering and economic

principles to control the cost of energy to provide needed services in
buildings and industries
• Most savings in energy costs = improvements in energy efficiency
• Some savings will come from changing the patterns of energy use and
possibly shifting to other sources of energy
Necessary Formulae
Recall Exercise
Consider a balanced three phase load consuming 36 kW at a power
factor of 0.86 and line to line voltage of 400 V (VLL) :
Determine
• 1)phase voltage
• 2)single phase real power
• 3) single phase apparent power
• 4) the current
Necessary Formulae
Necessary Formulae
Necessary Formulae
Fundamentals
Why do Energy Management
• Direct Cost Savings, very often with Low Risk, and…
• Many Non‐Utility Benefits:
– Maintenance, material & labor Savings
– Improved building value
• Better cost‐competitiveness
• Project ROI > Company’s profit margin
• Project ROI > Cost of finance
– Improved “Green”, “Sustainable” image
– Legal
• Ability to meet supplier/Govt. requirements
Fundamentals
Energy Audit
• Goals
• Clearly identify types and costs of energy use
• Understand how energy is being used/wasted
• Identify & analyse more cost‐effective ways of using energy
• improved operational techniques, new equipment, new processes, new technology, perform an
economic analysis of alternatives, determine which are cost‐effective & rank.

• Determining which audit to choose

• Depends on the funding available for the audit, the cost and potential of the Energy Conservation
Opportunity, the required accuracy for the audit information, the type of facility, function of the
facility, processes within a facility.

• Read notes on:

• Types and levels of Energy Audits
• Instrumentation
• EMOs
Energy Audit Stages
Energy Audit Stages
Energy Management Stages
EE and M&V Project Interaction
How can you save energy ?
Starting an Energy Management Program
• 1. Develop energy strategy
• 2. Set goals
• 3. Get support from top management
• 4. Establish administrative and management structure
• 5. Benchmark and track energy (i) cost & (ii) use
• 6. Conduct energy audits
• 7. Identify, analyze, and prioritize opportunities
• 8. Implement energy projects, processes, and training
• 9. Monitor, target, and reporting, and REPORTING (yes we said it
twice – it’s that important !!!!!)
Initiating an Energy Management Program

• Designate an energy manager/team

• Support from top management

– Get cooperation from the maintenance
– Operating personnel

• Management must provide support for:

– Funding to implement
– Collecting energy use and cost data
The Middle Part
• Effort goes to identifying & implementing.
– first create a hierarchy to rank all possible projects
-use company MARR to rank %
-use NPV to quantify

• start with low risk projects

– consider major conservation projects – mostly behavioral =inexpensive
– before major capital improvement projects

• (And, there is no end part to a good program)

Do energy conservation first
Occupied Day ‐ Client A
Unoccupied Day ‐ Client A
Change of Energy Consumption due to behavior
modification.
Survey on difficult to quantify results
Calculated Benefits
Energy costs in overheads

• A difficult problem:
– Trying to reduce energy costs
– Costs are hidden as part of general overhead

• Best Solution
− allocate energy costs down to "cost centers“
– managers then have a direct incentive to control energy costs and to improve
the overall cost‐effectiveness of the production center
Allocation of energy costs for multi‐tenant buildings

• Large buildings are often "master metered" to reduce utility fixed

charges and reduce rates.
• Each tenant should receive a bill and pay for its own energy
consumption
• "Master metering" plus sub‐metering ‐ an attractive approach.
• Utility grade sub‐meters are readily available & cost effective.
What is ISO 50001?
• ISO 50001 is a company level certification based on a standard published by the
International Organization for Standardization (ISO).
• The specification requires use of an energy management system with a main
purpose of using energy more efficiently.
• The main objective of the standard is to improve energy-related performance and
energy efficiency continuously and to identify energy reduction opportunities.
This systematic approach will help organizations to establish systems and
processes.
• Consistent energy management helps organizations to realize untapped energy
efficiency potential.
• They will benefit from cost savings and make a significant contribution to
environmental and climate protection, for example by the permanent reduction
of CO2 emissions.
• The organization can discover potential savings and competitive advantages.
Furthermore, a huge image boost for the organization can be created.
What is ISO 50001?
Energy Codes and Standards
• Energy codes – specify how buildings must be constructed or perform, written in
mandatory, enforceable language.
• Regional or local governments adopt and enforce energy codes for their jurisdictions
• Energy standards – describe how buildings should be constructed to save energy
cost‐effectively. Published by professional organizations eg American Society of Heating,
Refrigerating, and Air‐Conditioning Engineers (ASHRAE).
• Not mandatory, they serve as national recommendations, with some variation for
regional climate.
• Regional and local governments frequently use energy standards as the technical basis
for developing energy codes.
• Some energy standards are written in mandatory, enforceable language, making it easy
for jurisdictions to incorporate the provisions of the energy standards directly into their
laws or regulations.
• Read note on:
• International Energy Conservation Code
• ASHRAE Standard 90.1 ‐ 2010
• Green Energy Codes and Standards
Energy Purchasing
• Procurement of energy is becoming a major part of the energy
manager’s job.
• Cost effective energy procurement requires understanding of the
market, regulatory limitations and opportunities & contingency
planning.
• Optimal energy choice involves many issues including purchase price,
efficiency, availability & environmental impacts
Point of Use Cost
• Point of use cost depends on the purchase price and efficiency of use.
• All energy sources can be compared with POU for each converted to
some base measure of energy ( MJ, kwh)
• A common energy unit must be chosen to start with.

𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑒𝑛𝑒𝑟𝑔𝑦 𝑢𝑛𝑖𝑡

POU=
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 𝑜𝑓 𝑢𝑠𝑒

• POU is used only for operating costs. No capital cost is considered for
the bases of the calculation.
Point of Use Cost
• Strictly speaking, some of the heat in hot water is usually lost between
the central hot water heater and the faucets. Given that you can
reduce this waste by improving your hot water distribution system,
hence save on costs. Determine the fuel that provides the lowest
operating cost for a facility with a steam boiler that can operate on
LPG gas or oil. Given that when using LPG gas at $1.25 per kg and
45,650 kJ/kg, the boiler is 75% efficient, when using diesel oil at
$1.00/L and 39,000 kJ/L, the boiler is 78% efficient.
Energy Use Index (EUI)
• Basic measure of a facility’s energy performance
• A statement of the number of MJ of energy used annually per
square metre of conditioned space

𝑀𝐽 𝑜𝑓 𝐸𝑛𝑒𝑟𝑔𝑦 𝑈𝑠𝑒𝑑 𝑎𝑛𝑛𝑢𝑎𝑙𝑙𝑦

𝐸𝑈𝐼 =
𝑆𝑞𝑢𝑎𝑟𝑒 𝑚𝑒𝑡𝑟𝑒 𝑜𝑓 𝑠𝑝𝑎𝑐𝑒
• To compute the EUI
– Identify all the forms of energy used in the facility
– Tabulate the total energy in MJ used in the facility
– Determine the total amount of conditioned space in m²
– EUI is ratio of MJ/m²/year
Energy Use Index (EUI) for Commercial Building
(MJ/m²/year)
Energy Cost Index (ECI)

• The EUI has some fairly obvious limitations:

– Problem with mix of fuel and electricity
– Looks only at site energy ‐ not source energy

• With site energy, 1 kWh is valued at 3.6 MJ, but back at the thermal
power plant, it took around 11 ‐12 MJ of primary energy to produce
the 3.6 MJ value of that 1 kWh.

𝐶𝑜𝑠𝑡 𝑜𝑓 𝐸𝑛𝑒𝑟𝑔𝑦 𝑈𝑠𝑒𝑑 𝑎𝑛𝑛𝑢𝑎𝑙𝑙𝑦

𝐸𝐶𝐼 =
𝑆𝑞𝑢𝑎𝑟𝑒 𝑚𝑒𝑡𝑟𝑒 𝑜𝑓 𝑠𝑝𝑎𝑐𝑒
Energy Cost Index (ECI)
• The Energy Cost Index is sometimes used as a simpler and more
meaningful measure of energy efficiency.
• The Energy Use Index is somewhat misleading since all MJ are not
really equal (remember PoU efficiencies).
• Electric energy is much higher quality energy than oil or gas, but costs
about three times as much per end use MJ.
• The Energy Cost Index adds up all costs of energy and divides result
by total m² of conditioned space.
Benchmarking
• Energy Benchmarking
• Building energy benchmarking compares whole‐building energy use relative to a
set of similar buildings
• Useful start for individual energy audits & targeting buildings for energy‐saving
measures in multiple‐site audits
• Benchmarking is of interest & use to a number of groups

Energy service companies and performance contractors communicate energy

savings potential with “typical” and “best practice” benchmarks.

• Benchmarking Audits
• Are associated with the idea that after the energy bill data is collected and
processed, some facility information will be collected on a walk‐through, and the
data will be run through some benchmark to determine if there is a potential for
significant improvement in energy efficiency and reduction in energy operating
cost
Benchmarking Criterion
• Energy Use Index ‐ MJ/m²/year
– Total, Electric, Gas, Oil
• Energy Cost Index ‐ $/m²/year
– Total, Electric, Gas, Oil
• Productivity Index
– kJ/kg, kJ/person, kJ/student, kJ/tonne, kJ/item
– kWh/kg, kWh/person/ kWh/tonne, kWh/item
– L H2O/kg, or /student, or /item (also sewer)
• System performances
– kWe/kW cooling, LPS/kW air, kWh/L pumping
Load factor (LF)
• LF is an indication of the percentage of time the plant is operating at peak.
• Electrical LF is the energy consumed relative to the maximum energy that
could have been consumed if the maximum (kW) demand had been
maintained throughout the billing period. Mathematically, it is written as
follows:

• A high, short-duration peak demand will lower the LF, whereas a more
consistent rate of energy consumption will raise the LF.
• LF can be used as a barometer of a facility’s use of electricity by revealing
excessive demand for the energy consumed.
Indicator of Potential
• The utilization factor (UF) is the percent of use (occupancy, production,
etc.) of a facility.
• For comparative purposes, it should be calculated over the same period of
time as the electrical LF (24 hours, one week, one month, etc.).
• If there is a significant difference between the UF and the LF, further
investigation is probably warranted.
• Example: UF/LF calculations can be made without any demand profile
metering. All that is required is one or more electricity bills and knowledge
of facility operations.

• Calculate the UF for a typical school is occupied for 11 hours per day, five
days a week.
• Assume that the LF calculations yield an LF of 45%. Comment on the energy
efficiency position of the facility.
Typical answer:
• The fact that the LF is roughly one third higher than the UF would be
cause for further investigation and more questions: Are systems
operating when not required?
• Is the school being used longer than first thought?
• Can system controls be adjusted or retrofitted to trim the usage
closer to the occupancy hours?
Energy Comparative Analysis
• Energy monitoring serves to analyse information on energy consumption in order to
identify EMOs.
• By definition, monitoring is the regular collection of information on energy use.
• Its purpose is to establish a basis for management control, determine when and why
energy consumption is deviating from an established pattern, and form a basis for taking
management action where necessary.
• Monitoring is essentially aimed at preserving an established pattern.
• An internal comparative analysis methodology suggested for the audit would involve the
following:

• collect and record energy and driver data

• use regression analysis to investigate what drives energy use and establish a baseline relationship
for energy consumption
• use cumulative sum (CUSUM) analysis to investigate deviations in energy use from the baseline
• set a target for reduced energy consumption levels
Energy Use and Production
• Energy used in production processes typically heats, cools, changes the
state of, or moves material. Obviously, it is impossible to generalize
because industrial processes are complex and vary widely.
• There is reason to expect that energy plotted against production will also
produce a straight line of the general form;

y = mx + c
where c, the intercept (and no-load or zero-production energy consumption),
and m, the slope, are empirical coefficients, characteristic of the system
being analysed.

• The first step is to determine the functional relationship between energy

consumption and the key determining parameters, a relationship of the
form of equation
Regression Analysis
• The functional relationship between production and energy consumption
can usually be determined by linear regression, i.e. by finding the best fit of
a straight line using the least squares method to the plot of energy
consumption vs. production.
• However, this relationship may or may not represent consistent
performance that is unaffected by improvements or breakdowns.
• What is needed is a baseline against which all other performance can be
measured.

• Exercise
• Plot a graph of energy consumption vs. production for the given sample
Energy Use and Production Data. Determine the equation that describes
the least squares regression line. Hence or otherwise comment on the
relationship between x and y.
Regression Analysis
Regression on the Baseline Period

• The first 12 weeks can be considered as a Baseline case as the

performance was consistent, no improvements were installed, and no
breakdowns occurred. (Without information on performance, finding
the baseline is a trial-and-error process.)
• Exercise
• Plot a graph of energy consumption vs. production for the first 12 points in
the Energy Use and Production Data. Determine the equation that
describes the least squares regression line. Hence or otherwise comment on
the relationship between x and y.
Regression on the Baseline Period
Regression on the Baseline Period
• For the entire data set, the functional relationship that we are looking for is
• Electricity (kWh) = 476.48 × production (tonnes) + 59 611
• When a linear regression is done for the first 12 points, results, and the
functional relationship is
• Electricity (kWh) = 515.8 × Production (tonnes) + 60 978
• It is this relationship that can be used as a “standard” of performance
against which subsequent and future performance can be compared.
• Exercise
• Expand the Energy Use and Production Data by predicting consumption
based on the relationship and determine the variance between the actual
and calculated predicted values.
 CUSUM Analysis
• CUSUM is a powerful technique for developing management information.
• It distinguishes between significant events that affect performance (i.e. faults or
improvements) and noise.
• CUSUM stands for “CUmulative SUM of differences,” where “differences” refers to the
discrepancy between actual consumption and the consumption expected in light of an
established pattern.
• If consumption continues to follow the established pattern, the differences between the
actual consumption and the established pattern will be small and be randomly positive or
negative.
• The cumulative sum, or CUSUM, of these differences over time will stay near zero.
• Once a change in pattern occurs because of a fault or an improvement in the process
being monitored, the distribution of the differences above or below zero becomes less
symmetrical, and their cumulative sum – CUSUM – increases or decreases with time.
• CUSUM is calculated by accumulating the differences between predicted and actual
performance.
• Exercise:
• Calculate the CUSUM for the previous Energy Use and Production.
• Plot the CUSUM values as a time series to yielding a graph.
CUSUM PLOT
• The critical points on the CUSUM graph are the changes in the slope
of the line.
• These can be easily seen – and more precisely located – by laying
straight lines over the sections that have a more or less constant
slope.
• We see that these slope changes occurred at weeks 12,18, 25 and 30.
• Specifically, in terms of the process being analysed, the graph
indicates the following:
• There have been two measures to reduce consumption; one took
effect in week 12, the other in week 18.
CUSUM PLOT