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 programme. 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.
In any industry, the three top operating expenses are often found to be energy (both electrical
and thermal), labour and materials. If one were to relate to the manageability of the cost or
potential cost savings in each of the above components, energy would invariably emerge as a
top ranker, and thus energy management function constitutes a strategic area for cost
reduction. Energy Audit will help to understand more about the ways energy and fuel are used
in any industry, and help in identifying the areas where waste can occur and where scope for
improvement exists.
The Energy Audit would give a positive orientation to the energy cost reduction, preventive
maintenance and quality control programmes which are vital for production and utility
activities. Such an audit programme will help to keep focus on variations which occur in the
energy costs, availability and reliability of supply of energy, decide on appropriate energy mix,
identify energy conservation technologies, retrofit for energy conservation equipment etc.
In general, Energy Audit is the translation of conservation ideas into realities, by lending
technically feasible solutions with economic and other organizational considerations within a
specified time frame.
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.
