KAMA Application of Energy Audit - Essay Example

?Table of contents 0 Introduction page 1 Background 2 Types of an energy audits 2.0 Details of the audit process 2 Pre-site work 2.2 Sitevisit 2.3 Post site work Energy Audit Report 3.0 Executive Summary 4.0 Information on the Facility 5.0 Accounting Information 6.0 Energy conservation measures (ECM) 7.0 Operations and Management (O&M) measures 8.0 Analysis of the final figures 9.0 Conclusion 10 References 11 Appendices 1.0 Introduction “The primary goal of the energy audit report is to identify sources of potential energy and cost savings throughout the building through optimization, replacement and to provide recommendations on capital and maintenance improvements” (Katz, The Energy Audit Report California). This is important for firms that wish to put energy management systems in place. Hart et al (1997) defines energy management as the judicious and effective use of energy by firms to maximise profits and minimise costs in order to enhance their competitive positions vis-a-vis other firms operating in the same industry. 1.1 Background Energy conservation is important in all aspects of our lives. When firms produce goods to sell or provide services for customers they want to ensure that their services are competitively priced. In order for this to be possible firms have to ensure that they provide these services or produce these goods at the minimum cost possible. Energy cost is one of the main operating expenses for most firms. It is also the one that is most manageable or easiest to adjust in order to gain operating efficiencies. It is therefore important that firms find ways of minimising their energy costs in order to maximise the profitability of their operations. In order to make this possible they seek the help of energy conservation specialists/consultants who perform energy audits of facilities or equipments being used. 1.2 Types of energy audits There are two types of energy audits. They are the preliminary or walk-through energy audit and the detailed energy audit. For the packaging facility under study a preliminary energy audit was carried out. An investigation of the organisation involved collecting data and identifying the assets which are used in the facility and that consume electricity. Based on the normal consumption pattern for the items in use the bills were surveyed to determine if the KWh usage was in keeping with the manufacturer’s benchmark of the maximum energy use. The equipments were then assessed to determine if there were any defects that would result in excess energy usage. The facility was checked in terms of floor area and details were gathered on the hours of use of these equipments. The exterior and interior of the building and equipment were checked to determine what adjustments and repairs need to be done to effect energy conservation. The energy manager (proprietor/manager) was questioned to determine critical areas that require monitoring. Sub-meters were then placed in areas of particular concern and both hourly and or daily consumption data was taken for the day. An analysis was done of the results and sources of potential energy and cost savings were identified throughout the building. Some recommendations were then made for energy conservation and maintenance measures to be put in place. 2.0 Details of the Audit Process It was determined that the preliminary audit was the most appropriate since there were no complexities in the structure of the building. However, it involved testing of equipments which are not generally done in a preliminary audit. 2.1 Pre-Site Work Obtain facility and contact details inclusive of address and telephone number (Appendix 1) Steps were taken to identify the average energy use in the industry, specifically as it relates to electricity consumption. Failing that the internet was checked to determine the energy use of specific equipment Specific energy systems and energy use were also evaluated Specific equipments used in the industry were researched to determine their annual energy (electricity) consumption levels. A list of questions was generated (See Appendix 2) Issues to be discussed during the actual visit to the facility were noted. (See Appendix 2) A copy of the floor plan of the building along with information on the location of heating zones, HVAC equipment, light levels and other energy related systems Areas of particular interest were noted Questions on lighting systems were noted (Appendix 2) Questions related to equipment maintenance practices (see Appendix 2) Determine what energy conservation measures are currently in place. Preliminary matters with the proprietor of KAMA were discussed on the telephone. These matters include Any particular conservation projects or planned changes to the building and its systems. Determine what key systems will be in use Potential energy conservation measures (ECM) and operating and maintenance (O&M) procedures By carrying out the pre site work it meant that I was able to maximise my time on my visit to the site. This is considered to be the most important stage and so I had to ensure that it was properly dealt with. It sets the trend for the other phases and will therefore have a trickle down effect. Therefore if this phase is performed poorly the end result is that the recommendations may not be of any real value to the business. 2.2 Site visit The building was inspected form the exterior to the interior to determine how the structure contributes to energy conservation measures. I examined the make up of the building and the roofing. I also examined the insulation and looked for gaps in the wall that would likely affect the air conditioning system. The electricity system was inspected and all equipments consuming same were identified. The frequency and level of maintenance of these equipments were investigated, the operating schedules for these equipments were determined and questions were raised in relation to any major problems associated with their use. The age of the equipments were also noted as this may contribute to inefficiency problems. The consumption levels of more modern up-to date equipment will be compared to them. The operating schedule of the equipments are also noted to determine when they can be turned off at any time during working hours Twelve (12) months of energy bills was collected and reviewed to determine when there were spikes and troughs in the levels of energy consumption. The proprietor indicated that sometimes the AC unit was very cold and at other times it just did not function effectively 2.3 Post site work This is an important aspect of the audit as it determines the usefulness of the audit work carried out. The notes taken on the site visit is reviewed and any matters that needed clarification was discussed with the building manager and or the operators of the equipments where necessary. The information that has been gathered is evaluated to determine the potential for conservation opportunities. Pre site work done on potential conservation measures are researched and the energy usage is compared with that of the industry or other benchmark to determine what ECM and O&M procedures are necessary. The cost effectives of these ECM and O&M measures are determined and A report was then prepared outlining the energy conservation measures and O&M procedures that are necessary. This was then sent to the client for review. To: The General Manager KAMA Packaging From: Your name Date: 4th February 2011 Energy Audit Report on KAMA Packaging Facility 3.0 Executive summary KAMA operates a small industrial plant just outside of Birmingham. The firm imports spices from the Caribbean and packages it for sale. The firm has a computer, an HP Laser Jet printer, a sophisticated spice filling machine and a 12,000 BTU air conditioning unit. The operations of the business are carried out in the warmer months of the year, generally from about April to October each year. The proprietor/manager spends the other months seeking markets for his products and obtaining supplies. The pre site work revealed that the firm had just changed its packaging machine. The firm has had the air conditioning unit for over ten years and information gathered during the site visit revealed that the energy consumption levels were very high. Both the interior and the exterior of the building were checked and gaps were found in the building where air could enter and leave the building. Additionally, the location of the AC unit meant that it had to work harder and therefore used more electricity. Maintenance information gathered from the proprietor indicated that the AC unit had not been serviced for the past two years. Incandescent lighting is used throughout the building. It is recommended that KAMA replace the present AC unit with a newer model which is more efficient and has a lower BTU rating - say 6000 BTU. If the business cannot afford to do so right away then the AC unit will have to be serviced in order to reduce the amount of energy used. The AC unit also needs to be relocated as it is currently in the sun. Relocating the AC unit will further reduce the levels of energy consumption significantly. The firm needs to carry out repairs on the building so as to close the gaps that currently exist. Additionally, the incandescent lights need to be replaced with compact florescent lamps. According to Energy User News (nd.) this could increase efficiency by approximately 80% and for persistence in savings, fixtures that can only accept CFLs should be installed. 4.0 Information on the Facility The building is very old and has several gaps use to it poor maintenance over the years. The firm has just changed its packaging machine but has had the air conditioning (AC) unit for over ten years. The proprietor is the only person in the building except in a few cases when a customer turns up to make a bulk purchase. The AC unit is on for 10 hours each day and rarely ever chips out. The gauge is always positioned at 60 degrees Fahrenheit. No cleaning of office equipment takes place and so the vent in the AC unit is clogged with dust. It has not been cleaned for the past two (2) years and need urgent maintenance. Sub-metering of the equipment and the results generated for hourly consumption data gathered at the site visit revealed that the equipment (AC) was using more than twice the energy that it would have normally used based on the energy guide. A floor plan was not considered necessary based on the size of the facility and the structure of its energy system. 5.0 Accounting information on the firms utility consumption According to Brignall (2006, Air conditioning): “The BTU rating also gives a good indication of its running costs. A 10,000 BTU machine costs 10p an hour to run - 12,000 units cost 12p.” While the cost is not really applicable in 2011 the information is useful in that it provides comparative operating cost for AC units based on their BTU rating. The utility bills revealed that the cost of running the AC unit steadily increased over the period. The diagram below shows the proportion of the annual energy use of the four (3) pieces of equipment as well as lighting during the period. The cost of electricity has gone up by approximately 50% since then and so the figures above will increase by that percentage. According to Gibson Operating Group (2005) “At least 10% in energy savings may be expected for systems that are properly maintained versus those which are serviced only when problems occur. Moreover, equipment life is prolonged, leading to further cost savings.” The pie chart below shows the percentage energy consumption per equipment in use at KAMA Packaging. The pie chart above indicates that 49% of energy consumption relates to the AC unit, 43% to the packaging equipment, 6% to lighting and 1% each to the operation of the computer and the printer. This information indicates that the AC unit is the main user of electricity during the period. The equipment is currently using up to three times the manufacturers stated (maximum) electricity usage in a day based on the results form our sub-meter. Information gathered also suggests that during the hours of heavy sunlight it works harder which is based on its location. These represent key factors in determining that the equipment has not being working efficiently. It is therefore important that they be treated as key factors in the energy conservation strategies to be employed at the facility. The bar graph above shows the monthly electricity usage per equipment. The usage was nil in January, February March, November and December as the proprietor search for new suppliers and customers during these colder months. During the warmer months of June, July, august and September the energy usage for the AC unit shows significant increases. This is as a result of the heat from the sun based on its location and the poor maintenance procedures that currently exist. The diagram above shows clearly the energy consumption trends of KAMA Packaging. Consumption of electricity is zero (0) in Months 1, 2 and 3 because no packaging took place. Consumption increases in month 4, 5, 6, 7 and 8, starts decreasing as the time gets colder and falls to 0 in months 11 and 12 because no packaging took place. 6.0 Energy Conservation Measures (ECM) The business currently uses an AC with a BTU rating of 12,000. This equipment uses twice as much energy as an AC with a BTU rating of 6,000. The cost of replacing the AC unit is ?900. It will be relocated to a cooler area on the building. The only additional cost that will arise as it relates to the AC unit is the maintenance of the unit which should take place annually. The current AC unit is now consuming almost thrice the amount of energy it would normally use. It is recommended that any AC unit purchased should be Energy Star Certified. “ENERGY STAR is the global mark of energy efficiency. It is typically awarded to the top 25 percent most energy efficient appliances, home electronic products and office equipment in each category” (Energy Efficiency and Conservation Authority, nd.). If the current lights are replaced with compact florescent lamps this would reduce the energy use associated with the lighting of the building by 80%. The cost of replacing the fixtures is ?300. Repairs to the building which will not only improve the value and aesthetics of the building but also reduce the level of energy consumption will cost ?2,500. The Table below shows the reduction in energy levels and the cost savings that would accompany the above recommendations. Equipment Current KWh Usage Benchmark KWh With ECM KWh Savings Cost of savings (?)* AC unit 7,095 2,905 4,190 545 Spice Packaging Machine 6,300 6,300 0 0 Lighting 840 168 689 90 Computer 140 140 0 0 Printer 210 210 0 0 Total Savings 4,879 635 * According to Bio Mass Energy Centre (nd. Fuel Price per KWh) the KWh rate for electricity is 13p The AC unit included in the table above shows the cost of operating the current AC unit when it is working efficiently. If replaced with one that has a lower BTU rating of 6,000 the cost of operating the new AC unit would be cut by 50% of the benchmark figures. An additional 1,452 KWh of electricity would be conserved resulting in the total energy conserved being 6,331 KWh and a reduction in the cost of electricity by ?824. 7.0 Operations and maintenance (O&M) measures O&M measures would involve servicing the spice packaging machine as recommended by the manufacturers and servicing of the air conditioning unit on an annual basis. According to airconco (nd., Air Conditioning Service …) during this process “filters are checked and cleaned”; the “evaporator and condenser coils are cleaned”; all “motors are oiled” where required; the condenser is checked; the thermostat is checked to ensure it is working properly; all electrical fitting and test controls are checked; and a check is done to determine whether the refrigerant levels are adequate. If the refrigerant level is low it should be checked and any leaks that are found should be repaired before adding further gas. Based on information gathered from airconco (nd, Air Conditioning Service…) the cost of servicing the AC unit is ?95. Dust particles inevitably gather on the machine on a daily basis so light cleaning is essential during the period. The vents could be cleaned by an insider (person working in the organisation on a monthly basis. This will result in better quality care and the efficient operation of the AC unit 8.0 Analysis of the final figures Carrying out a simple analysis of the cost and savings we could calculate a simple payback based on the costs and savings in the table below. Description Costs Savings Air conditioning unit (maintenance and purchase) 900 734 Lighting (new lamps and fixtures) 300 90 Repairs to building 2,500 Totals 3700 824 Simple payback = Initial cost/Energy savings = 3700/824 = 4.5 = 5 years It should be noted that the cost of the audit was not taken into consideration in this analysis. It must be said that such a figure is important in any cost and benefit analysis. The cost of the energy audit represents an initial cost. Additionally, the current AC unit could also be traded in thereby reducing the cost of the replacement unit and therefore the capital expenditures of the business. 9.0 Conclusion This is just a preliminary audit and a more detailed one can be carried out if the operator of the facility find it necessary. KAMA will benefit tremendously from this energy audit. The savings to be derived are significant and the measures outlined will assist the company in minimising its costs and thereby maximising its profits. This will help the business to compete more effectively with its rivals in the industry. The proprietor/manager should avoid complacency to ensure that things do not return to the past. KAMA should endeavour to make waste be a thing of the past. Continuously carrying out the above measures and maintaining equipment on a regular basis are the only way out and the only means by which continuity can be attained and efficiency maintained. Further ways of conserving energy can be sought when the company find it necessary to so. It is not sufficient that the manager be content with these measures. There may be other energy saving measures that the business can employ to further reduce cost and add create more value added. References Bee India. (nd) Energy Audit Handbook (Ch 3). Available: http://www.bee-india.nic.in/energy_managers_auditors/documents/guide_books/1Ch3.pdf. Last accessed 30th Jan 2011 Bio Mass Energy Centre. (nd). Fuel price per KWh. Available: http://www.biomassenergycentre.org.uk/portal/page?_pageid=75,59188&_dad=portal&_schema=PORTAL. Last accessed 1st Feb 2011 Brignall, M (2006, July). Air conditioning. The Guardian . Available: http://www.guardian.co.uk/money/2006/jul/22/electronicgoods.shopping. Last accessed 31st Jan 2010 eHow.co.uk. (nd.) Preliminary Energy Audit Checklist. Available: http://www.ehow.co.uk/list_6801118_preliminary-energy-audit-checklist.html#ixzz1CwOX1CQq. Last accessed 1st Feb 2011 Energy Efficiency and Conservation Authority (nd). Energy Star. Available: http://www.eeca.govt.nz/standards-and-ratings/energy-star. Last accessed 3rd Feb 2011 Energy User News (nd.). Energy Audits. Available: http://www.energyusernews.com. Last accessed 3rd Feb 2011 Gibson Consulting Group. (2005). Facility Energy Report (Sample). Available: http://www.gibsonconsultants.com Milan, C. (nd.). A Guidebook for Performing Walk-Through Energy Audits of Industrial Facilities. Bonneville Power Administration Energy efficiency Department. Available: http://www.bpa.gov/indexmain.shtml. Last accessed 30th Jan 2011 Revisiting office space standards (nd). Available: http://www.brigholme.com/knowledge/Revisiting_Office_Space_Standards.pdf. Last accessed 30th Jan 2011 The Government of Hong Kong Special Administrative Region. (2007). Guidelines on Energy Audit. Electrical & Mechanical Services Department. Available: Guidelines on Energy Audit http://www.emsd.gov.hk/emsd/e_download/pee/Guidelines_on_Energy_Audit_2007.pdf The Air Conditioning Company. (nd.). Air Conditioning Service, Maintenance and Repair of your Installation. Available: http://www.airconco.com/air-conditioning-service/. Last accessed 30th Jan 2011 Thumann, A. & Younger, W. J. (2008) Handbook of Energy Audits. 7th ed. Georgia: Fairmont Press. Appendix 1 Company Data Facility Name: KAMA Facility contact: Mr. Kanute Sutherland Facility Telephone Number: Facility Address: Near Birmingham Date of Audit: January 20, 2011 Audited By: A Consultant Appendix 2 How old is the building? How many rooms are in the building? What types of equipments do you operate in the building? How often do carry out maintenance services on the equipments? Do you have any problems with the equipments such as malfunctioning? If so describe these problems? How long does the business operation last each day Read More