MODULE-1

Basic principles of Energy audit: Energy audit-definitions:

An energy audit is fulfilled at a residential or a commercial premise to determine its energy

efficiency. In simple words, energy efficiency means usage of lesser energy to do the same job.
The audit will help with a complete electricity consumption and energy efficiency assessment.
Energy audit is a process of evaluating and analyzing energy usage in a building, system or process
to identify potential areas for improvement in energy efficiency. Energy audit is not only crucial
for reducing energy consumption and saving [Link] energy audit is an inspection survey and an
analysis of energy flows for energy conservation in a building. It may include a process or system
to reduce the amount of energy input into the system without negatively affecting the output. In
commercial and industrial real estate, an energy audit is the first step in identifying opportunities
to reduce energy expense and carbon footprint.

Concept of energy audit:

An energy audit is a systematic process of inspecting and analyzing how energy is used within a
building or facility to identify areas of energy waste and recommend ways to improve energy
efficiency. It's essentially a roadmap for reducing energy consumption and costs without
compromising performance.

Inspection and Analysis:

An energy audit involves a thorough examination of energy usage patterns, energy-consuming

equipment, and overall energy systems within a building or facility.

Identification of Waste:

The audit aims to pinpoint areas where energy is being used inefficiently or wasted, such as poor
insulation, inefficient lighting, or faulty equipment.

Recommendation of Solutions:

Based on the findings, an energy audit provides recommendations for energy-saving measures,
often including cost-benefit analysis and implementation plans.
Focus on Efficiency:

The ultimate goal is to optimize energy consumption, reduce energy bills, and minimize
environmental impact.

Need for an Energy Audit

In any Organization, 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 programmers 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 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 more effective use of energy throughout the organization.
co-campus concept mainly focuses on the efficient use of energy and its conservation including
savings opportunities in a sustainable manner. It also focuses on the reduction of contribution to
carbon emissions, carbon footprint calculation, procurement of star rated equipment for a cost
effective and secure supply of energy, encourage and enhance energy use conservation in all
buildings, reduce the organization’s energy consumption, reduce wastes to landfill, and integrate
environmental considerations into all contracts and services considered to have significant
environmental impacts. Auditing for Energy Management may be studied in terms of energy
savings and opportunities. In general, energy cannot be seen, but we know it is there in wire, pipes
and other non-living materials because we can see its effects in the forms of heat, light and power.

This indicator addresses energy consumption, energy sources, energy monitoring, lighting,
vehicle movement, electrical and electronics appliances, and transportation. Energy use is clearly
an important aspect of campus sustainability and thus requires no explanation for its inclusion in
the assessment. However, energy saving and opportunities may be taken into consideration while
energy is extensively used. An old incandescent (tungsten) bulb uses approximately 60W to 100W
while an energy efficient light emitting diode (LED) uses only less than 10W which indicated the
positive indication on energy savings. Energy auditing deals with the conservation and methods to
reduce its consumption related to environmental degradation. In addition, suggestions and
recommendations might be given after auditing which in turn useful for energy savings. It is
therefore essential that any environmentally responsible institution examine its energy use
practices at least once in two years using internal and external auditors.

Types of audit:

The type of Energy Audit to be performed depends on:

• Function and type of industry

• Depth to which final audit is needed, and
• Potential and magnitude of cost reduction desired

Thus Energy Audit can be classified into the following two types.

I. Preliminary Energy Audit

II. Detailed Energy Audit

III. Potential and magnitude of Energy Audit

IV. Comprehensive Energy Audit

Preliminary Energy Audit Methodology

Preliminary energy audit is a relatively quick exercise to:

 • 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.

Detailed Energy Audit Methodology

A comprehensive audit provides a detailed energy project implementation plan for a facility, since
it evaluates all major energy using systems. This type of audit offers the most accurate estimate of
energy savings and cost. It considers the interactive effects of all projects, accounts for the energy
use of all major equipment, and includes detailed energy cost saving calculations and project cost.
In a comprehensive audit, one of the key elements is the energy balance. This is based on an
inventory of energy using systems, assumptions of current operating conditions and calculations
of energy use. This estimated use is then compared to utility bill charges. Detailed energy auditing
is carried out in three phases: Phase I, II and III.

Phase I - Pre Audit Phase

Phase II - Audit Phase

Phase III - Post Audit Phase

Potential and Magnitude of Energy Audit A structured methodology to carry out an energy audit
is necessary for efficient working. An initial study of the site should always be carried out, as the
planning of the procedures necessary for an audit is most important.

Initial Site Visit and Preparation Required for Detailed Auditing

An initial site visit may take one day and gives the Energy Auditor/Engineer an opportunity to
meet the personnel concerned, to familiarize him with the site and to assess the procedures
necessary to carry out the energy audit.

During the initial site visit the Energy Auditor/Engineer should carry out the following
actions: -

• Discuss with the site‟s senior management the aims of the energy audit.
• Discuss economic guidelines associated with the recommendations of the audit.
• Analyse the major energy consumption data with the relevant personnel.
• Obtain site drawings where available – building layout, steam distribution,compressed air
distribution, electricity distribution etc.
• Tour the site accompanied by engineering/production

The main aims of this visit are:

• To finalize Energy Audit team

• To identify the main energy consuming areas to be surveyed during the audit.
• To identify any existing instrumentation/ additional metering required.
• To decide whether any meters will have to be installed prior to the audit eg. kWh,
• steam, oil or gas meters.
• To identify the instrumentation required for carrying out the audit.
• To plan with time frame
• To collect macro data on major energy consuming centers
• To create awareness through meetings/ programme.

Comprehensive Energy Audit

Depending on the nature and complexity of the site, a comprehensive audit can take from several
weeks to several months to complete. Detailed studies to establish,and investigate, energy and
material balances for specific plant departments or items of process equipment are carried out.
Whenever possible, checks of plant operations are carried out over extended periods of time, at
nights and at weekends as well as during normal daytime working hours, to ensure that nothing is
overlooked.

The audit report will include a description of energy inputs and product outputs by major
department or by major processing function, and will evaluate the efficiency of each step of the
Organization. Means of improving these efficiencies will be listed, and at least a preliminary
assessment of the cost of the improvements will be made to indicate the expected payback on any
capital investment needed. The audit report should conclude with specific recommendations for
detailed engineering studies and feasibility analyses, which must then be performed to justify the
implementation of those conservation measures that require investments. The comprehensive
energy audit may be useful to identify the consuming areas to be surveyed during the audit and to
identify any existing instrumentation/ additional metering required. A care should be taken to
identify the instrumentation required for carrying out the audit and to plan with time frame
including the collection macro data on major energy consuming centers. It will be definitely useful
for energy management towards energy savings opportunities.

The information to be collected during the detailed audit includes:

1. Energy consumption by type of energy, by department, by major items of process equipment,

by end-use.

2. Energy cost and tariff data.

3. Generation and distribution of site services (eg. compressed air, steam).

4. Sources of energy supply (e.g. electricity from the grid or self-generation)

5. Potential for fuel substitution, process modifications, and the use of cogeneration systems
(combined heat and power generation).

6. Energy Management procedures and energy awareness training programs within the
establishment. Existing baseline information and reports are useful to get consumption pattern.
The audit team should collect the following baseline data:

• Technology, processes used and equipment details

• Capacity utilization
• Water consumption
• Fuel Consumption
• Electrical energy consumption
• Steam consumption
• Efficiencies / yield
Energy Index:

In the context of an energy audit, an energy index is a metric used to quantify and assess the energy
performance of a building, system, or process. It provides a benchmark for energy consumption,
allowing for comparisons and the identification of potential areas for improvement. Essentially,
it's a way to measure how efficiently energy is being used.

What it represents:

Energy Performance: An energy index, like Energy Use Intensity (EUI), reflects how much
energy a building consumes relative to its size (e.g., kWh per square foot). A lower EUI indicates
better energy performance.

Benchmarking: By comparing a building's energy index to similar buildings or established

benchmarks, one can assess its relative efficiency and identify areas where energy consumption
is higher than expected.

Tracking Progress: Energy indices can be used to track changes in energy consumption over
time, allowing for the assessment of the effectiveness of implemented energy-saving measures.

Common examples of energy indices: Energy Use Intensity (EUI): Total annual energy
consumption divided by the total floor area of a building.

Energy Performance Index (EPI): Similar to EUI, but may exclude unconditioned areas.

State Energy Efficiency Index (SEEI): Developed by the Bureau of Energy Efficiency (BEE) and
Alliance for an Energy Efficient Economy (AEEE), this index assesses state-level energy
efficiency programs and policies across various sectors.

Energy Index (in the context of DISCOMs): Used to assess energy consumption in electricity
distribution companies, including factors like authorized connections, supply efficiency, and per
capita consumption,.

How it's used in energy audits:

1. Data Collection: Energy audits involve collecting data on energy consumption, often including
electricity, heating fuel, and other relevant energy sources.
2. Index Calculation: The collected data is then used to calculate the relevant energy indices,
such as EUI or EPI.

3. Analysis and Recommendations:

By comparing the calculated indices to benchmarks and historical data, auditors can identify areas
where energy consumption is excessive or inefficient. This analysis forms the basis for
recommending specific energy-saving measures. In essence, the energy index provides a
quantifiable measure that helps in understanding energy usage patterns and guides the
development of strategies to improve energy efficiency.

OR

Energy index:

Energy may be purchased in various units, for example, coal in tones; gas in ft3 , m3 , therms; oil
in gallons, litres, tons, barrels etc. the relevant conversion units from one system to the other are
given below:

Units and conversion factors.

General

1 short ton (ton) = 2000 lb

1 metric ton (tonne) = 1000 kg

1 ton = 0.907185 tonne

1 barrel = 42 U.S. gallons = 159.0 liters

1 barrel of crude oil ~ 0.136 tonne

1 square mile = 640 acres = 2.590 km2

1 hectare = 10-2

km2 = 2.471 acres

Energy units

1 calorie (thermochemical) = 4.184 J

1 calorie (15 °C) = 4.1858 J

1 calorie (IT) = 4.1868 J

1 calorie (mean) = 4.1900 J

1 Btu = 251.9958 calories

1 Btu (thermochemical) = 1054.35 J

1 Btu (59 °F) = 1054.80 J

1 Btu (IT) = 1055.06 J

1 Btu (mean) = 1055.87 J

1 kilowatt-hour (kWh) = 3.6 x 106 J

1 kilowatt-hour (kWh) = 3412 Btu (IT)

1 therm = 100,000 Btu

1 electron-volt = 1.6022 x 10-19 J

Assu med efficiency in electricity

Generation (for calculating "primary energy")

Source DOE/EIAOECD/IEA

nuclear power 0.320 0.33

hydroelectric 0.332a 1.00

biomass 0.332a

wind and solar 0.332a 1.00

geothermal 0.163 0.10

a. Set equal to efficiency for fossil fuels.

Example 1:

Consider a company using three energy forms – oil, gas and electricity. The annual energy
consumption is shown below in various energy units. Each of these energy types may be
represented as a percentage of the total energy used and tabulated as an energy balance

Energy type Consumption Energy Energy(J) Energy(Wh)

Oil 10X103gal 1.775X109Btu 1.872X1012 0.520X109
Gas 5X103therm 5X103therm 0.526X1012 0.146X109
Electricity 995X103KWh 995X103KWh 0.358X1012 0.995X109
Total 2.754X1012 1.661X109

Calorific value of oil: 18.3X10 Btu/lb; Density of fuel: 9.7 lb/gal

Percentage Energy Balance:

Energy Form Percentage

Oil 67.9
Gas 19.1
Electricity 13.0
Total 100.0

Energy index is a useful parameter to monitor and compare energy consumption of specific
products manufactured by the industry. Energy index is the figure obtained by dividing energy
consumption by production output, and the index may be calculated weekly, monthly or annually.
Although the total energy indices are sufficient for monitoring purposes, a record of the individual
energy indices should be maintained. In the event of an increase or decrease (due to perhaps a
conservation measure) in energy index, the particular source can be investigated immediately.

Cost Index:

The cost index is another parameter which can be used to monitor and assess energy consumption
by a company. The cost index is defined as the cost of energy divided by the production output.
An individual cost index can be determined for each energy form and for the total energy
consumption by the company.

Example1:

Table below shows energy costs for a company using coke,gas and [Link] company
produces 15X103 tons per year. Calculate cost indices.

Energy Type Consumption Costs

Coke 1.5X103(tons) 108.0X103
Gas 18X103(therms) 3.6X103
Electricity 1X109(Wh) 22.5X103
Total 134.1X103

Coke cost index = 108.0 X103/15 X103 (tons) = 7.2/ton Gas, cost index = 3.6 X103/15 X103
(tons) = 0.2/ton ,Electricity cost index = 22.5 X103/15 X103 (tons) = 1.5/ton ,Total cost index =
134.1 X103/15 X103 (tons) = 8.9/ton

Pie- Charts:

Energy usage is plotted on a circular chart where the quantity of a particular type is represented as
a segment of a circle. The size of the segment will be proportional to the energy consumption using
a particular fuel (energy form or source) relative to total energy use. The energy units must be
rationalized to the same units. A pie chart (or a circle graph ) is a circular chart divided into sectors,
illustrating proportion. In a pie chart, the arc length of each sector (and consequently its central
angle and area), is proportional to the quantity it represents. When angles are measured with 1 turn
as unit then a number of percent is identified with the same number of centiturns. Together, the
sectors create a full disk. It is named for its resemblance to a pie which has been sliced. The sizes
of the sectors are calculated by converting between percentage and degrees or by the use of a
percentage protractor. The earliest known pie chart is generally credited to William Playfair's
Statistical Breviary of 1801.

The pie chart is perhaps the most widely used statistical chart in the business world and the mass
media. However, it has been criticized, and some recommend avoiding it, pointing out in particular
that it is difficult to compare different sections of a given pie chart, or to compare data across
different pie charts. Pie charts can be an effective way of displaying information in some cases, in
particular if the intent is to compare the size of a slice with the whole pie, rather than comparing
the slices among them. Pie charts work particularly well when the slices represent 25 to 50 % of
the data, but in general, other plots such as the bar chart or the dot plot, or non- graphical methods
such as tables, may be more adapted for representing certain information.

Example: Student Grades

Here is how many students got each grade in the recent test:
A B C D
4 12 10 2
And here is the pie chart:
Pie Chart-A special chart that uses "pie slices" to show relative sizes of [Link] you just did
a survey of your friends to find which kind of movie they liked best. Here are the results:

Table:Favorite Type of Movie

Comedy Action Romance Drama SciFi

4 5 6 1 4

You could show that by this pie chart:

It is a really good way to show relative sizes: it is easy to see which movie types are most liked,
and which are least liked, at a [Link] can create graphs like that using our Data Graphs (Bar,
Line and Pie) page. Ho w to Make Them Yourself First, put your data into a table (like above),
then add up all the values to get a total:

Comedy Action Romance Drama SciFi TOTAL

4 5 6 1 4 20

Next, divide each value by the total and multiply by 100 to get a percent:
 Comedy Action Romance Drama SciFi TOTAL

4 5 6 1 4 20

4/20=20% 5/20 =25% 6/20 =30% 1/20=5% 4/20 =20% 100%

Now you need to figure out how many degrees for each "pie slice" (correctly called a sector). A
Full Circle has 360 degrees, so we do this calculation:

Comedy Action Romance Drama Sci Fi TOTAL

4 5 6 1 4 20

4/20 =20% 5/20 = 25% 6/20 =30% 1/20 =5% 4/20 =20% 100%

4/20 × 360° 5/20 × 360° 6/20 × 360° 1/20 × 360° 4/20 ×60°
360°
=72° =90° =108° =18° =72°

Now you are ready to start drawing! Draw a circle. Then use your protractor to measure the
degrees of each sector.

Sankey Diagram

Sankey diagrams are a specific type of flow diagram, in which the width of the arrows is shown
proportionally to the flow quantity. They are typically used to visualize energy or material or cost
transfers between processes. The concept of data visualization in the digital age has revived interest
in a style of chart called a Sankey diagram. This style of diagram makes it easy to see the dominant
flows within a system and highlights where losses occur. The Sankey diagram is very useful tool
to represent an entire input and output energy flow in energy system after carrying out energy
balance calculation. The thicker the line, the greater the amount of energy involved.

Applications

They are also commonly used to visualize the energy accounts or material flow accounts on a
regional or national level. Sankey diagrams put a visual emphasis on the major transfers or flows
within a system. They are helpful in locating dominant contributions to an overall flow. Often,
Sankey diagrams show conserved quantities within defined system boundaries, typically energy
or mass, but they can also be used to show flows of non-conserved quantities such as energy.
Sankey Diagrams drop their arrows when energy is being used. One of the most famous Sankey
diagrams is Charles Minard's Map of Napolean's Russian Campaign of 1812. It is a flow map,
overlaying a Sankey diagram onto a geographical map. It was created in [Link] diagrams
are named after Irish Captain Matthew Henry Phineas Riall Sankey, who used this type of diagram
in 1898 in a publication on the energy efficiency of a steam engine While the first charts in black
and white were merely used to display one type of flow (e.g. steam), using colors for different
types of flows has added more degrees of freedom to Sankey diagrams.
Benefits of Sankey Diagrams

In comparison to a conventional bar or pie chart and even a flow chart, they are more suitable for
visualizing the energy balance or material [Link] charts draw the attention to the largest
and most significant entries within a system. Additionally, through the visualization data
inconsistencies can be detected, such as measurement and transmission errors.

Load Profiles:

Introduction

The energy load profile (hereafter referred to as simply "load profile") is an estimate of the total
energy demanded from a power system or sub-system over a specific period of time (e.g. hours,
days, etc). The load profile is essentially a two-dimensional chart showing the instantaneous load
(in Volt-Amperes) over time, and represents a convenient way to visualize how the system loads
changes with respect to time. Note that it is distinct from the electrical load schedule - the load
profile incorporates a time dimension and therefore estimates the energy demand (in kWh) instead
of just the instantaneous load / power (in kW).
Why do the calculation?

Estimating the energy demand is important for the sizing of energy storage devices, e.g. batteries,
as the required capacity of such energy storage devices depends on the total amount of energy that
will be drawn by the loads. This calculation is also useful for energy efficiency applications, where
it is important to make estimates of the total energy use in a system .

When to do the calculation? A load profile needs to be constructed whenever the sizing of energy
storage devices (e.g. batteries) is required. The calculation can be done once preliminary load
information is available.
Calculation Methodology

There are two distinct methods for constructing a load profile:

1) Autonomy method is the traditional method used for backup power applications, e.g. UP S
systems. In this method, the instantaneous loads are displayed over an autonomy time, which is
the period of time that the loads need to be supported by a backup power system in the event of a
power supply interruption.

2) 24 Hour Profile method displays the average or expected instantaneous loads over a 24 hour
period. This method is more commonly associated with standalone po wer s ystem applications,
e.g. solar systems, or energy efficiency applications.

Both methods share the same three general steps, but with some differences in the details:

▪ Step 1: Prepare the load list

▪ Step 2: Construct the load profile

▪ Step 3: Calculate the design load and design energy demand

Step 1: Prepare the Load List

The first step is to transform the collected loads into a load list. It is similar in form to the electrical
load schedule, but is a little simplified for the purpose of constructing a load profile. For instance,
instead of categorizing loads by their load duty (continuous, intermittent or standby), it is assumed
that all loads are operating continuously.

However, a key difference of this load list is the time period associated with each load item:

In the autonomy method, the associated time period is called the "autonomy" and is the number of
hours that the load needs to be supported during a po wer supply interruption. Some loads may
only be required to ride through brief interruptions or have enough autonomy to shut do wn safely,
while some critical systems may need to operate for as long as possible (up to several days).

In the 24 hour profile method, the associated time period is represented in terms of " ON" and "
OFF " times. These are the times in the day (in hours and minutes) that the load is expected to be
s witched on and then later turned off. For loads that operate continuously, the ON and OFF time
would be 0:00 and 23:59 respectively. A load item may need to be entered in twice if it is expected
to start and stop more than once a day.
Calculating the Consumed Load VA

For this calculation, we are interested in the consumed apparent power of the loads (in VA). For
each load, this can be calculated as follows:

𝑃𝑙
𝑆𝑙 =
𝑐𝑜𝑠∅ × Ƞ

Where 𝑆𝑙 is the consumed load apparent power (VA)

𝑃𝑙 is the consumed load power (W) ,

𝑐𝑜𝑠∅ is the load power factor (pu)

Ƞ is the load efficiency (pu)

Step 2: Construct t he Load Profile

The load profile is constructed from the load list and is essentially a chart that shows the
distribution of the loads over time. The construction of the load profile will be explained by a
simple example.

Load profile constructed for this example

Suppose the following loads were identified based on the Autonomy Method:
 Description Load(VA) Autonomy(h)

DCS Cabinet 200 4

ESD Cabinet 200 4

Telecommunications Cabinet 150 6

Computer Console 90 2

The load profile is constructed by stacking "energy rectangles" on top of each other. An energy
rectangle has the load VA as the height and the autonomy time as the width and its area is a visual
representation of the load's total energy. For example, the DCS Cabinet has an energy rectangle of
height 200 (VA) and width 4 (hours). The load profile is created by stacking the widest rectangles
first, e.g. in this example it is the Telecommunications Cabinet that is stacked first. For the 24 Hour
method, energy rectangles are constructed with the periods of time that a load is energized (i.e. the
time difference between the ON and OFF times).

Step 3: Calculate Design Load and Energy Demand

De sign Load

The design load is the instantaneous load for which the power conversion, distribution and
protection devices should be rated, e.g. rectifiers, inverters, cables, fuses, circuit breakers, etc. The
design can be calculated as follows:

Where,

𝑆𝑑 is the design load apparent po wer ( VA)

𝑆𝑝 is the peak load apparent power, derived from the load profile ( VA)

𝑘𝑔 is a contingency for future load gro wth ( %)

𝑘𝑐 is a design margin ( %)

It is common to make considerations for future load gro wth (typically somewhere between 5 and
20%), to allow future loads to be supported. If no future loads are expected, then this contingency
can be ignored. A design margin is used to account for any potential inaccuracies in estimating the
loads, less-than-optimum operating conditions due to improper maintenance, etc. Typically, a
design margin of 10 % to 15 % is recommended, but this may also depend on Client preferences.

Energy Conservation Schemes

Development of an energy conservation programme can provide savings by reduced energy use.
However, it is economical to implement an energy conservation program only when savings can
offset implementation cost over a period of [Link] areas of conserving energy and a logical
analysis of the methods or techniques of conservation would provide a systematic and disciplined
approach to the entire conservation strategy as a sequel to the energy audit. Some established
conservation trends are replacement, retrofit, process innovation, fuel conservation and co-
generation. It is generally considered that investment for energy conservation should be judged by
exactly the same criteria as for any other form of capital investment. Energy conservation measures
may be classified on an economic basis and fall into the following three categories:

(a) Short term: These measures usually involve changes in operating practices resulting in little or
no capital expenditure.

(b) Medium term: Low-cost modifications and improvements to existing equipment where the pay-
back period is less than two years and often under one year.

(c) Long term: Modifications involving high capital costs and which frequently involve the
implementation of new techniques and new technologies.

While the first two categories together can achieve savings of the order of 5 -10 %, capital
expenditure using existing and new technology may achieve a further 10-15 %. It is impossible to
give a comprehensive list of all items in each category but selected examples are given for each
section.

Short- term energy conservation schemes

Items in this group can be considered as a tightening of operational control and improved
housekeeping.
(a) Furnace efficiencies: Greater emphasis should be placed on minimum excess combustion air.
Oxygen levels of flue gases should be continually monitored and compared with target values. Oil
burners must be cleaned and maintained regularly.

(b) Heat exchangers: In the case of heat where useful heat is transferred from product streams to
feed streams, careful monitoring of performance should be carried out to determine optimum
cleaning cycles. Frequency of cleaning will generally increase as a result, with consequent
improved heat recovery.

(c) Good housekeeping: Doors and windows should be kept closed as much as possible during the
heating season. Wear natural light is sufficient, do not use artificial light. Avoid excessive
ventilation during the heating season. Encourage staff to wear clothing appropriate to the
temperature of the working areas.

(d) Use of steam: Major steam leaks should be repaired as soon as possible after they occur: often
a firm specializing in ‘on stream’ maintenance can be used. One crude distillation columns where
live steam is used for stripping purposes, the amount required should be optimized and carefully
controlled.

(e) Electrical power: In industries where all the electrical power is ‘imported’ conservation
measures can reduce the annual electricity costs by 10–15 percent. Steam driven turbines may
prove more economical as prime movers. Natural air cooling may be sufficient and therefore
induced–draught fans may be taken out of commission. Pumping costs can sometimes be saved by
utilizing gravity to move products from one tank to another. Where possible, use off-peak
electricity.

Medium -term energy conservation schemes

Significant savings in energy consumption are often available for quite modest outlays of Capital
based on a pay-back period of less than two years,

(a) Insulation: Improving insulation to prevent cold air leaking into the building and also,
improving insulation thickness was determined at a time when fuel oil was Rs 6 per tone and,
consequently, at present fuel oil prices, optimum thicknesses have increased appreciably. In
addition, in older plants lagging may have deteriorated to varying degrees. For an outlay of
Rs25000, savings of Rs 60000 per annum were achieved. In all oil refinery the lagging on the
process steam system was up rated to new optimum thicknesses and the Rs20000 invested in the
project was recouped within a year

(b) Heating Systems: Improving the time and temperature control of the heating systems in
buildings should result in substantial energy savings.

(c) Replacing air compressors

(d) Instrumentation: To measure and control the energy conservation parameters, adequate
instrumentation must be provided or operators will soon lose interest in maintaining efficiencies if
they are working with inadequate an unreliable instruments.

(e) Process modifications: Many of these schemes will depend on the nature of the industry
concerned, however, one general scheme will be considered. Steam condensate, if
uncontaminated, may be used as boiler feed water. Improved condensate return systems can
increase the amount recovered. The effect will be to increase the heat recovered in the condensate
and at the same time reduce raw water and treatment costs. In one instance 10000 Kg/h of
condensate was recovered for an investment of Rs10000; the pay-back time was less than six
months.

(f) Burners: The control and amount of atomizing stream is important and often in furnaces and
boilers the amount of atomizing steam is far in excess of design. In a hospital two fuel oil-fired
boilers were examined and in some instances it was found that 1 kg steam/kg fuel oil was being
utilized. The oil burners were replaced and the atomizing steam requirements are no w 0.1 kg
steam/kg fuel oil. The pay-back for an outlay of Rs12000 was ten months.

(g) Electrical Power Savings: Considerable savings may be made by adjusting the electrical power
factor correction.

Capacitors were installed in one particular company at a cost of Rs 10000. The power factor was
increased from 0.84 to 0.97 reducing the maximum demand level by over 14 percent. The pay-
back time was nine months. To increase plant capacity two feed pumps may be run in parallel to
achieve the required feed rate. When replacement, for mechanical reasons, becomes necessary it
is more economical to replace the pump by a single pump having a higher capacity.
Long-term energy conservation schemes

To obtain further economics in energy consumption required the spending of significant amounts
of capital, although, in many cases, the return on capital for the long-term investment may not be
as good as that of the medium term. Full financial evaluation is needed, using the appraisal
techniques discussed in Unit- V, to ensure the investment is economically viable.

(a) Heater modifications: The installation of heating tubes and air pre-heaters to extract more heat
from furnace flue gases.

(b) Improved Insulation: Additional lagging of heated storage tanks. This type of project often
comes within the medium-term group.

(c) Heat recovery: improved heat recovery in the processing areas by additional heat exchange
schemes.

Many of the energy projects that have been outlined may be adopted by a wide variety of
companies. However, some are more specific in their application and it is necessary to consider
the contribution of energy costs to companies and energy usage by different industries. The ABCs
of Energy Conservation Schemes can be used as a checklist to identify the areas of deficiency and
adopt the right approach for energy savings.

A B C
Adjustable frequency drives Balancing energy Co-generation
Ambient air reset controls Blow-down controllers Chiller optimization
Analysis of audit results Break-even analysis Copper fins in cooling/heating
D E F
Demand control Economizer control Fenestration techniques
Delay monitoring and avoidance Efficient equipment selection Filter loading control
DDC management systems Energy audit and analysis Fan efficiency optimization
G H I
Glazing systems for heat gain Heat energy tacking Insulation
Gas cooling Heat recovery methods Infiltration control
General housekeeping High efficiency criteria Inspections
J K L
Job-task analysis Kettle heat control Lighting
Joint sealing and testing kWh and kW reduction Load calculation/shedding
Justify retrofits keg temperature control Life-cycle cost analysis
M` N O
Maintenance Metering Monitoring Nonconventional methods Occupancy sensors
Novel technologies Optimization
Natural gas use Over-rating avoidance

Energy audit of industries-energy saving potential :

An energy audit in industries is a process of identifying opportunities to reduce energy

consumption and improve efficiency. It involves assessing energy usage patterns, identifying areas
of waste, and recommending solutions for energy savings, ultimately leading to reduced costs and
improved environmental sustainability. This involves analyzing energy bills, reviewing equipment
performance, and mapping energy flows within the facility. Energy audits pinpoint areas where
energy is being wasted, such as inefficient equipment, poor insulation, or inadequate operating
practices. Based on the assessment, energy audits provide specific recommendations for energy-
saving measures, including equipment upgrades, process optimization, and behavioral changes.
Energy audits estimate the potential energy and cost savings from implementing recommended
measures, allowing for informed decision-making.

Energy saving potential in industries:

By identifying and eliminating energy waste, industries can significantly lower their energy bills.
Optimized energy use leads to better equipment performance and reduced downtime, enhancing
overall operational efficiency. Reducing energy consumption contributes to lower greenhouse gas
emissions and promotes a more sustainable industrial operation. Lower energy costs and improved
efficiency can make industries more competitive in the market.

Example areas for energy savings:

Lighting: Replacing inefficient lighting with LED lighting and optimizing lighting schedules can
lead to substantial energy savings.

HVAC systems: Upgrading or optimizing heating, ventilation, and air conditioning systems,
including proper insulation, can significantly reduce energy consumption.

Process optimization: Identifying and eliminating inefficiencies in industrial processes can lead
to significant energy savings.

Equipment upgrades:

Replacing old, inefficient equipment with new, energy-efficient models can result in substantial
energy and cost savings. By conducting regular energy audits and implementing recommended
measures, industries can unlock significant energy savings, reduce costs, improve operational
efficiency, and contribute to a more sustainable future. Energy efficiency for industry is very
important for its own survival and the planet too. It will be beneficial for people, planet, companies
and the environment. Which is why there is a growing demand for greater energy efficiency for
various industries. Energy efficiency means using the energy wisely to reduce waste and negative
impact on the environment. This is the short answer to the question what energy efficiency is.
There are many ways you can achieve the desired results. One of the most effective method is
energy auditing. It can help industries come up with an effective plan to become more energy
efficient.

What is Energy Audit?

Energy audit is a process or technique of analyzing the energy usage inside a building or facility.
It includes inspection, survey, and analysis of energy flows in a building. A qualified team is
involved in the process where they analyze the various departments and their energy usage. It is
the first step towards identifying the energy saving opportunities in commercial and industrial
settings.

It mostly has three stages:

• Investigation or analyzing Phase

• Monitoring Phase

• Analysis & Reporting Phase

Energy audits are essential for all types of industries to reach their goal of energy efficiency.

Industrial Energy Audits

The industries are one of the largest consumers of energy and earth resources. This makes it even
more important for them to become energy efficient. In last few decades, the demand of energy
efficiency for industry has grown. The need for lower energy cost and sustainable environment
has paved the way for energy efficiency. Energy audit is one of the most effective tools or strategy
that can help industries become more energy efficient.

Energy audits are conducted at homes and other settings too. The industrial energy audit is different
than others in many ways. The usual consumer of energy in industrial settings are HVAC,
manufacturing equipment, and devices, and lighting system. These areas are the major focus of the
energy audit. Improving the energy consumption in these areas can help industries become energy
efficient.

Types of Energy Audit

There are many types of energy audit. Depending on what your industry needs, you can choose
the type of energy audit you need. Basically, there are types of energy auditing methods or levels:

1. Level 0 or Benchmarking

The first stage in the energy audit process is level 0 or the benchmarking and includes analysis of
the Whole Building Energy Use (WBEU). It involves analysis of the existing use and costs and
then comparing the results with the performance of the building to it. Benchmarking is a process
where existing data is used to determine how much is the energy consumption level in the current
industry. It also tells if further analysis is required.

2. Level I or Walk-through Audit

The next is the Level 1 or walkthrough auditing process. It includes a walkthrough to the entire
building to identify the areas that need improvement and what measures can be taken to save
energy. This step includes analyzing the utility bill, energy usage, information available, data
related to building equipment and operation. It is here that energy audit team can identify the areas
they can focus on for energy efficiency.

3. Level II or Detailed Audit

In this type of energy audit, a detailed analysis is done to find out the problem areas, the areas they
can improve on, and more. It included detailed walkthrough the entire area to create an energy
profile of the industrial property. Every building, every department and energy points will be
analyzed to find out the measures for saving energy. A detailed survey is conducted to create the
data.

4. Level III or the Investment-grade Audit

In this type of energy auditing, detailed analysis is done. It is even more detailed than the Level II
energy audit type. It includes detailed examination of capital-intensive improvements and may
include analysis of potential costly ECOs requiring. It may require a laborious engineering study.

Why Industries Need Energy Audit?

Energy auditing is important for various reasons. It can address the important issue of energy costs
and environmental concerns. Through professional energy auditing industries can save money as
well as reduce pressure in natural resources.

Here are some of the benefits of energy audit:

•Energy audit can help industries come up with an effective plan to achieve greater energy
efficiency. It can help achieve energy efficiency for industry through energy cost reduction and
efficient use of the energy.

• Reduction in energy costs can help improve production, efficiency of work and
competitiveness. Industries will have more funds to focus on growth and investments.

• Energy audit can help reduce dependency on the foreign energy sources. This again can reduce
the cost. It also helps in reduction in the consumption of natural resources.

• The biggest contribution of energy audits towards reducing the damage done to the environment
due to exploitation of [Link] efficiency for industry is possible through energy audit.

Energy audit of process industry:

An energy audit in a process industry involves systematically assessing energy consumption to

identify areas for improvement and cost reduction. This process typically involves data collection,
analysis, on-site surveys, and the development of energy management plans. The goal is to
minimize energy waste, improve efficiency, and reduce operational costs while maintaining or
enhancing production output.

Initial Assessment and Objective Setting

Begin by meeting with key stakeholders to understand the objectives of the audit, specific
concerns, and expected outcomes. The determine the scope of the audit, including which buildings,
systems, or operations will be examined.

Data Collection

Collect historical data on energy consumption, typically from utility bills over the past 12-24
months. Then obtain and review blueprints, operational schedules, equipment specifications, and
maintenance records to understand the facility's infrastructure and usage patterns.

Preliminary Analysis

Compare the facility’s energy performance against similar facilities or industry standards to
identify any significant discrepancies. Based on the data collection methods, develop a preliminary
list of areas where potential energy-saving opportunities might exist.

On-Site Inspection

Conduct a thorough walkthrough of the facility to observe operating conditions, equipment

performance, and areas of energy use and energy waste. Use tools like infrared cameras, power
meters, and airflow meters to conduct a detailed inspection of critical systems such as lighting,
HVAC, refrigeration, and industrial processes. Talk to facility personnel to gain insights into
operational practices and areas where they perceive energy inefficiencies.

Detailed Analysis

Map out energy flows within the facility to understand how energy is consumed in various
processes. Then analyze the data to pinpoint specific areas of energy loss or inefficiency. Then use
software tools to model energy consumption patterns and simulate potential impacts of proposed
changes.

Recommendations

Develop a list of recommended measures to reduce energy consumption, such as retrofitting

equipment, optimizing control systems, or implementing renewable energy solutions. Perform a
cost-benefit analysis for each recommended measure, considering implementation costs, expected
savings, and payback periods. Prioritize recommendations based on factors such as cost-
effectiveness, ease of implementation, and potential impact on energy savings.

Reporting

Compile a comprehensive report that includes the findings, analyses, and recommendations. The
report should be clear, detailed, and structured to facilitate decision-making. Present the findings
to stakeholders, explaining the identified inefficiencies and proposed measures, supported by the
cost-benefit analysis.

Implementation Plan

Develop an actionable plan for implementing the recommended measures, including a timeline,
responsible parties, and necessary resources. Identify potential sources of funding or incentives to
support the implementation of energy-saving measures.

Monitoring and Verification

Track the implementation process to ensure that recommended measures are executed as planned.
After implementation, monitor energy consumption to verify the actual savings achieved and
compare them to the projected savings. Make any necessary adjustments to the implemented
measures and continue to seek opportunities for further energy efficiency improvements

Specific Examples in Process Industries:

Process Optimization: Identifying opportunities to optimize processes to reduce energy

consumption in manufacturing or production.

Equipment Upgrades: Recommending upgrades to more energy-efficient equipment, such as

motors, pumps, or HVAC systems.

Waste Heat Recovery: Identifying opportunities to capture and reuse waste heat from industrial
processes.

Insulation Improvements: Addressing heat loss through inadequate insulation on pipes, vessels, or
buildings.
Lighting Optimization: Replacing outdated lighting with more energy-efficient alternatives and
implementing smart lighting controls.

Thermal Power Station:

AUDIT OF EQUIPMENT

Condensate Extraction Pump

Steam, after passing through the turbine, condenses in the turbine condenser and collects in the
condenser hot well. For TG#1 & TG#2 there are three condensate extraction pumps (2W + 1S)
each respectively. The CEP for TG#1 & TG#2 pumps water through L.P feed heater to the
deareator each respectively. The following parameters have been measured to assess the
performance of condensate extraction pumps.

1. Discharge pressure

2. Power consumption

3. Flow rate

The operating efficiency has been compared with design efficiency at operating conditions.
Performance of CEP Pumps

CEP CEP CEP CEP

1A 1B 2A 2B
 Description Units Design Actual Actual Actual Actual

Flow rate 𝑚3/hr 65 53 56 54 56

Discharge pressure Kg/𝑐𝑚3 11.5 11.4 11.8 11.5

Temperature °C 123 123 123 123

Density Kg/𝑚3 991 991 941 941

Total head developed m 119 116 115 125 122

Input motor power kW 30.9 32.5 32.1 31.5

Rated motor power kW 37

Motor efficiency % 90 90 90 90
Hydraulic power kW 16.61 17.40 17.36 17.55

Combined overall efficiency % 53.75 53.53 54.09 55.71

Pump efficiency % 59.72 59.47 60.10 61.90
Input kW to the pump kW 27.8 29.3 28.9 28.4

Specific power consumption kW/CMH 0.583 0.580 0.594 0.563

Percentage loading of pump on
% 82 86 83 86
flow
Percentage loading of pump on
% 98 97 105 103
head
Percentage loading of motor % 75 79 78 77

OBSERVATION:

[Link] the CEP’s are operated very close to its design head but the flow is much lower than design
value.

2. Check the mechanical side of these pumps to improve the performance.

3. Reduce the pressure drop in condensate line (TG 1& 2). Opening of hot well level control valve
of TG 1 & 2 is varying from 36 to 47% to control the flow. The discharge pressure of CEP is 11
kg/𝑐𝑚2. But the condensate pressure after hot level control valve is 4.6 kg/𝑐𝑚2. Hence throttling
across control valve can be minimized by installing VFD at CEP to regulate the flow and maintain
hot well level.

Boiler feed Pump

In PP-2, Phase #3 there are six BFP installed (Four and two stand by) to pump water from the
deareator storage tanks to WHRB through feed water control valves. Each WHRB has a feed
control valves which is used to control the feed water level in boiler. For TG#1 & TG#2 there are
three BFP (2W+ 1S) each respectively. The BFP of TG#1 & TG#2 pump water to common header
and there after it goes to 4 numbers of WHRB.

The following parameters have been measured to assess the operating performance of the feed
water pumps.

• Suction and discharge pressure

• Discharge flow rate
• Motor power consumption

The efficiency of the BFP is calculated based on the measured parameters and the detailed calculations
of all the feed pumps are given below.
Performance analysis of BFP

BFP- BFP- BFP- BFP-

Description Units Design Reference
1A 1C 2A 2C

Flow rate 𝑚3/hr 78.32 67 65 64 63 Measured

Suction pressure Kg/𝑐𝑚2 3.00 2.80 2.96 2.97 Measured

Discharge pressure Kg/𝑐𝑚2 98.9 98.7 99.3 99.7 Measured

Temperature °C 123 123 128 128

Density Kg/𝑚3 941 941 937 937

Total head developed m 1015 1019 1019 1029 1032

Input motor power kW 296.4 287.5 301.5 303.7 Measured

 Rated motor power kW 360
Motor efficiency % 93 93 93 93

Hydraulic power kW 175.09 169.90 168.09 166.04

Combined overall
% 59.07 59.10 55.75 54.67
efficiency

Pump efficiency % 63.52 63.54 59.95 58.79

Input kW to the pump kW 275.7 267.4 280.4 282.4
Specific power
kW/CMH 4.424 4.423 4.711 4.821
consumption
Percentage loading of
% 86 83 82 80
pump on flow
Percentage loading of
% 100 100 101 102
pump on head
Percentage loading of
% 77 73 78 78
motor

OBSERVATION:
• The pump efficiency is on lower side.
• Hence check the mechanical side of the pump to improve the performance.
HP Pump

There are three HP pumps installed for higher pressure water supply for ash handling. In normal
operation one pump is operated and other is kept as stand by.

Performance analysis of HP Pump

Description Units Design HPPump-3

Flow rate M3/hr 340 210

Suction pressure Kg/cm2 0.3

Discharge pressure Kg/cm2 10.5
 Temperature °C 108.43

Input motor KW 157.00

Rated motor power KW 160
Motor efficiency % 90%

Hydraulic power kW 61.80

Combined overall efficiency % 39.36%
Pump efficiency % 43.74%

Input KW to the pump kW 141.3

Specific power consumption Kw/CMH 0.748
Percentage loading of pump on
% 62%
flow
Percentage loading of pump on
% 90%
head

Percentage loading of motor % 88%

OBSERVATION:

• Efficiency of the pump is found to be less. Check the internals/overhaul the pump to
improve the performance .after that also if the performance is not improved then replace
the pump with energy efficient pump.

CPP COMPRESSOR

The plant has three air compressor installed to take care of the pneumatic and service air
operations. All three air compressor are in auto mode with different set pressure. During normal
operation comporessor-2 running while other remains as standby.

The operating parameters of compressor- 2

Loading power consumption - 98 kW

Set load pressure - 7.5 kg/cm2

Set unload pressure - 8.2 kg/cm2

Compressed air layout

OBSERVATION:

OBSERVATION:

• The receiver of the compressor has a manual valve which is kept open for one minute in
every 4 hours. This is the practice which the plant regularly maintained. Install
compensated drain valve to drain the compensated from the receiver.

Building Energy Audit:

Energy management in buildings

Controlling costs in today’s public sector environment has become a critical priority that requires
clear strategies for managing the variety of expenses incurred on a daily basis. Improving the
energy efficiency of your organization offers many cost reduction opportunities. Energy
management—the process of understanding and managing energy costs through energy efficiency
and energy purchase strategies—has become a management issue. As a management issue, the
achievement of energy efficiency with the associated cost savings involves many aspects of your
organization. Clearly, there are technical issues because energy is consumed by technical systems.
But technical systems are operated by people, and people can dramatically influence the level of
energy consumption. As well, a strong organizational commitment is necessary to ensure the
success of any business undertaking — energy efficiency included. There are several
characteristics of organizations that successfully manage their energy use that can serve as a guide.
Typically they: exhibit a broad awareness of the benefits of energy efficiency throughout the
organization; collect and utilize information to manage their energy use; have an energy
management plan--short term and long term; integrate the task of managing energy into the overall
management structure of the organization; provide leadership for energy management through a
―champion‖ or group of committed staff—an energy management team; and, have top-down
commitment expressed in the form of an energy efficiency policy.
It is a useful exercise to take a few minutes to develop a list of the actions or measures associated
with each of these principles in your organization. In considering

Principle 1, energy purchase, the building operator needs to assess price, availability, and energy
content (in fact, the cost per unit of energy available from the source), as well as those issues that
influence his ability to negotiate favorable energy purchase agreements. Consideration of Principle
2 should allow the operator to generate a list of management actions that he or someone else in the
organization can take now to ensure that energy is used as efficiently as possible.
Principle 3 may be the most difficult one to deal with right now. However, in thinking about the
technological aspects of energy use, it is helpful to categorize measures as

• No cost – that is, housekeeping and operational changes

• Low cost – that is measures that may require some investment in technology, but
that rely extensively on input from people
• High cost – those measures that require significant investments of capital for the
acquisition and installation of new technology.

The structure of energy consuming systems

An energy consuming system is a collection of elements that consume energy. Energy audits are
usually concerned with systems that may be as extensive as a building complex such as a multi-
building hospital, or as narrow as a single piece of equipment such as a heating plant. Figure
illustrates the generic structure of an energy consuming system, as it may exist in a building site.

For simplicity, Figure only shows one branch to each subordinate level in the systems hierarchy.
Real systems would have many branches from each component to various slower levels. In this,
the term energy consuming system may refer to a site, building, department, system or piece of
equipment or any combination of these.

MODULE-2

Energy management:

Principles of energy management:

Energy management systems (EMS) are a type of system designed to help businesses and
organizations improve their energy efficiency and reduce their energy-related costs. This type of
system is based on the principle of energy efficiency which is the practice of using energy in the
most efficient manner possible. Energy management systems are important for businesses, as they
can help to reduce energy costs, improve energy efficiency, and reduce the environmental impacts
of energy use.

Five Core Principles of Energy Management System?

An effective energy management system is essential for any organization that wants to reduce its
energy consumption and become more sustainable. It is important to understand the five core
principles of an effective energy management system in order to ensure that your organization is
taking the necessary steps towards becoming more energy efficient.

These five core principles include:

1. Understanding the current state of your energy use: Capturing energy consumption and storage
data, finding out ways to conserve energy, estimating opportunities for energy conservation, and
analyzing the meter data to observe the improvements and review the progress of energy
conservation measures.

2. Setting goals and objectives: Energy management includes planning and operation of energy
production and energy consumption units as well as energy distribution and storage.

3. Implementing strategies for achieving those goals: Organizations might have green goals such
as are resource conservation, climate protection and cost savings, while they access to the energy
they need.

4. Monitoring progress: Identification and tracking of energy pattern, controlled energy system’s
use, properly maintained and managed facilities, and good maintenance are also important steps
in energy management.

5. Making adjustments as needed. Energy management is based on controlling, conserving, and

monitoring energy within the organization.

Advantages of EMS
Energy efficiency is an important part of energy management, and facility management is an
important part of energy management in operational functions. There are many advantages to
using an energy management system. These include:

• Improved efficiency: An energy management system can help to identify and eliminate
energy waste, which can help to improve energy efficiency.
• Cost savings: An energy management system can help to reduce energy costs, as the
system can help to identify and eliminate energy waste.
• Reduced environmental impacts: An energy management system can help to reduce the
environmental impacts of energy use, as the system can help to identify and reduce
energy waste.

Organizing energy management program:

The organizational chart for energy management program is shown in figure. It must be adapted
to fit into an existing structure for each organization. For example, the presidential block may be
the general manager, and VP blocks may be division managers, but the fundamental principles are
the same. The main feature of the chart is the location of the energy manager. This position should
be high enough in the organizational structure to have access to key players in management, and
to have knowledge of current events within the company. For example, the timing for presenting
energy projects can be critical. Funding availability and other management priorities should be
known and understood. The organizational level of the energy manager is also indicative of the
support management is willing to give to the position.
Energy manager:

One very important part of an energy management program is to have top management support.
More important, however, is the selection of the energy manager, who can among other things
secure this support. The person selected for this position should be one with a vision of what
managing energy can do for the company. Every successful program has had this one thing in
common—one person who is a shaker and mover that makes things happen. The program is then
built around this person. There is a great tendency for the energy manager to become an energy
engineer. Developing a working organizational structure may be the most important thing an
energy manager can do.

Energy coordinators: Energy Coordinators shall be appointed to represent a specific department or

division. The Energy Manager shall establish minimum qualification standards for Coordinators,
and shall have joint approval authority for each Coordinator appointed. Coordinators shall be
responsible for maintaining an ongoing awareness of energy consumption and expenditures in their
assigned areas. They shall recommend and implement energy conservation projects and energy
management practices. Coordinators shall provide necessary information for reporting from their
specific areas. They may be assigned on a full-time or part-time basis; as required to implement
programs in their areas.
Employees: Employees are shown as a part of the organizational structure, and are perhaps the
greatest untapped resource in an energy management program. A structured method of soliciting
their ideas for more efficient use of energy will prove to be the most productive effort of the energy
management program. A good energy manager will devote 20% of total time working with
employees. Too many times employee involvement is limited to posters that say “Save Energy.”
Employees in manufacturing plants generally know more about the equipment than anyone else in
the facility because they operate it. They know how to make it run more efficiently, but because
there is no mechanism in place for them to have an input, their ideas go unsolicited. An
understanding of the psychology of motivation is necessary before an employee involvement
program can be successfully conducted.

1) Initiating:

A well written energy policy authorized by the management provides the energy manager with the
authority of being involved in business planning, new facility location and planning. Selection of
production equipment, purchase of measuring equipment and energy [Link] above
mentioned policy confuses with a procedures manual, in order to have an effective policy it should
contain the planning

a) Objectives:

In these statements relating to energy and most importantly that the organization will incorporate
energy efficiency into facilities with equipment must be emphasized along with life cost analysis.

b) Accountability:

In this segment it should define the organization structure and authority held by energy manager,
coordinators etc.

c) Reporting:

For a smooth flow of an organization, metering the energy use with skilled labour and
instrumentation is must. Hence reporting provides a legitimate reason for cancelling funds from
top management

2) Planning:
Planning is the most important part of energy management program, and for most technical people
is the least desirable. From a good plan one can shield from disruption and also the scheduling of
events puts continuous emphasis on the energy management programme

a) Problem Definition: The problem is clearly defined all the members of energy management
program

b ) Grouping: Divide large groups into smaller groups of seven to ten, then have group
elected recording secretary

c) Generation of Ideas: Each person writes as many answers to a problem as can be

generated within a specifies time.

d) Round-Robin Listing:

Secretary lists each idea individually on a caset until all have been recorded. Caset is a
frame displaying charts promotional materials etc.

e) Discussion: Ideas are discussed for clarification, elaboration, evaluation and combining

f) Ranking: Each person ranks the five most important items. The total number of points receive
for each idea will determine the first choice of group.

3) Educational or Audit Planning:

Individual definitions of the audit contribute to the events that will keep energy
management programme active. For this to happen an audit team must be departed such that

a) The team can be selected to match equipment to be audited, and thus can made as in-
house personnel.

b) Energy team can identify all potential energy conservation projects, in terms of capital
investment the audit can be an excellent training tool by involving others in process, and by
adding a training component as a part of the audit.

4) Reporting:
The bottom line is that any reporting system has to be customized to suit individual circumstances
and while reporting is not always the most crucial part of managing energy, it can make a
contribution to programme by providing bottom-line on its effectiveness. By making report of
requirement of energy policy, it simply require combining production data and energy data to
develop an energy index. With all the above considered, the best way to report is to do it against
an audit than has been performed at facility.
 MODULE-3

EB billing- HT and LT supply

The electricity billing by utilities for medium & large enterprises, in High Tension (HT) category,
is often done on two-part tariff structure, i.e. one part for capacity (or demand) drawn and the
second part for actual energy drawn during the billing cycle. Capacity or demand is in kVA
(apparent power) or kW terms. The reactive energy (i.e.) kVArh drawn by the service is also
recorded and billed for in some utilities, because this would affect the load on the utility.
Accordingly, utility charges for maximum demand, active energy and reactive power drawn (as
reflected by the power factor) in its billing structure. In addition, other fixed and variable expenses
are also levied.

The tariff structure generally includes the following components:

a) Maximum demand Charges: These charges relate to maximum demand registered during
month/billing period and corresponding rate of utility.

b) Energy Charges: These charges relate to energy (kilowatt hours) consumed during month /
billing period and corresponding rates, often levied in slabs of use rates. Some utilities now charge
on the basis of apparent energy (kVAh), which is a vector sum of kWh and kVArh.

c) Power factor penalty or bonus rates, as levied by most utilities, are to contain reactive power
drawn from grid.

d) Fuel cost adjustment charges as levied by some utilities are to adjust the increasing fuel
expenses over a base reference value.

e) Electricity duty charges levied w.r.t units consumed.

f) Meter rentals

g) Lighting and fan power consumption is often at higher rates, levied sometimes on slab basis
or on actual metering basis.
h) Time of Day (TOD) rates like peak and non-peak hours are also prevalent in tariff structure
provisions of some utilities.

i) Penalty for exceeding contract demand

j) Surcharge if metering is at LT side in some of the utilities: Analysis of utility bill data and
monitoring its trends helps energy manager to identify ways for electricity bill reduction through
available provisions in tariff framework, apart from energy budgeting. The utility employs an
electromagnetic or electronic trivector meter, for billing purposes. The minimum outputs from the
electromagnetic meters are

• Maximum demand registered during the month, which is measured in preset time intervals (say
of 30 minute duration) and this is reset at the end of every billing cycle.

• Active energy in kWh during billing cycle

• Reactive energy in kVArh during billing cycle and

• Apparent energy in kVAh during billing cycle

It is important to note that while maximum demand is recorded, it is not the instantaneous demand
drawn, as is often misunderstood, but the time integrated demand over the predefined recording
cycle.

The month’s maximum demand will be the highest among such demand values recorded over the
month. The meter registers only if the value exceeds the previous maximum demand value and
thus, even if, average maximum demand is low, the industry / facility has to pay for the maximum
demand charges for the highest value registered during the month, even if it occurs for just one
recording cycle duration i.e., 30 minutes during whole of the month. A typical demand curve is
shown in Figure.

As can be seen from the Figure above the demand varies from time to time. The demand is
measured over predetermined time interval and averaged out for that interval as shown by the
horizontal dotted line. Of late most electricity boards have changed over from conventional
electromechanical trivector meters to electronic meters, which have some excellent provisions that
can help the utility as well as the industry. These provisions include:

• Substantial memory for logging and recording all relevant events

• High accuracy up to 0.2 class

• Amenability to time of day tariffs

• Tamper detection /recording

• Measurement of harmonics and Total Harmonic Distortion (THD)

• Long service life due to absence of moving parts

• Amenability for remote data access/downloads

Trend analysis of purchased electricity and cost components can help the industry to identify key
result areas for bill reduction within the utility tariff available framework along the following lines.

Transformers:

A transformer can accept energy at one voltage and deliver it at another voltage. This permits
electrical energy to be generated at relatively low voltages and transmitted at high voltages and
low currents, thus reducing line losses and voltage drop (Transformers consist of two or more coils
that are electrically insulated, but magnetically linked. The primary coil is connected to the power
source and the secondary coil connects to the load. The turn’s ratio is the ratio between the number
of turns on the secondary to the turns on the primary The secondary voltage is equal to the primary
voltage times the turn’s ratio. Ampere-turns are calculated by multiplying the current in the coil
times the number of turns. Primary ampere-turns are equal to secondary ampere-turns. Voltage
regulation of a transformer is the percent increase in voltage from full load to no load

Types of Transformers

Transformers are classified as two categories: power transformers and distribution transformers.
Power transformers are used in transmission network of higher voltages, deployed for step-up and
step down transformer application (400 kV, 200 kV, 110 kV, 66 kV, 33kV) Distribution
transformers are used for lower voltage distribution networks as a means to end user connectivity.
(11kV, 6.6 kV, 3.3 kV, 440V, 230V)
Rating of Transformer

Rating of the transformer is calculated based on the connected load and applying the diversity
factor on the connected load, applicable to the particular industry and arrive at the kVA rating of
the Transformer. Diversity factor is defined as the ratio of overall maximum demand of the plant
to the sum of individual maximum demand of various equipment. Diversity factor varies from
industry to industry and depends on various factors such as individual loads, load factor and future
expansion needs of the plant. Diversity factor will always be less than one.

Location of Transformer:

Location of the transformer is very important as far as distribution loss is concerned. Transformer
receives HT voltage from the grid and steps it down to the required voltage. Transformers should
be placed close to the load centre, considering other features like optimization needs for centralized
control, operational flexibility etc. This will bring down the distribution loss in cables.

Transformer Losses and Efficiency

The efficiency varies anywhere between 96 to 99 percent. The efficiency of the transformers not
only depends on the design, but also, on the effective operating load .Transformer losses consist
of two parts: No-load loss and Load loss

1. No-load loss (also called core loss) is the power consumed to sustain the magnetic field in the
transformer's steel core. Core loss occurs whenever the transformer is energized; core loss does
not vary with load. Core losses are caused by two factors: hysteresis and eddy current losses.
Hysteresis loss is that energy lost by reversing the magnetic field in the core as the magnetizing
AC rises and falls and reverses direction. Eddy current loss is a result of induced currents
circulating in the core.

2. Load loss (also called copper loss) is associated with full-load current flow in the transformer
windings. Copper loss is power lost in the primary and secondary windings of a transformer due
to the ohmic resistance of the windings. Copper loss varies with the square of the load current. (P
= I2 R).

Transformer losses as a percentage of load is given in the Figure:

For a given transformer, the manufacturer can supply values for no-load loss, P NO-LOAD, and
load loss, PLOAD. The total transformer loss, PTOTAL, at any load level can then be calculated
from:

PTOTAL = PNO-LOAD + (% Load/100)2 x PLOAD

Where transformer loading is known, the actual transformers loss at given load can be computed
as:

Voltage Fluctuation Control:

A control of voltage in a transformer is important due to frequent changes in supply voltage level.
Whenever the supply voltage is less than the optimal value, there is a chance of nuisance tripping
of voltage sensitive devices. The voltage regulation in transformers is done by altering the voltage
transformation ratio with the help of tapping. There are two methods of tap changing facility
available: Off-circuit tap changer and On-load tap changer.

Off-circuit tap changer

It is a device fitted in the transformer, which is used to vary the voltage transformation ratio.
Here the voltage levels can be varied only after isolating the primary voltage of the transformer.

On load tap changer (OLTC)

The voltage levels can be varied without isolating the connected load to the transformer. To
minimize the magnetization losses and to reduce the nuisance tripping of the plant, the main
transformer (the transformer that receives supply from the grid) should be provided with On Load
Tap Changing facility at design stage. The downstream distribution transformers can be provided
with off-circuit tap changer. The On-load gear can be put in auto mode or manually depending on
the requirement. OLTC can be arranged for transformers of size 250 kVA onwards. However, the
necessity of OLTC below 1000 kVA can be considered after calculating the cost economics.

Parallel Operation of Transformers

The design of Power Control Centre (PCC) and Motor Control Centre (MCC) of any new plant
should have the provision of operating two or more transformers in parallel. Additional
switchgears and bus couplers should be provided at design stage. Whenever two transformers are
operating in parallel, both should be technically identical in all aspects and more importantly
should have the same impedance level. This will minimize the circulating current between
transformers. Where the load is fluctuating in nature, it is preferable to have more than one
transformer running in parallel, so that the load can be optimized by sharing the load between
transformers. The transformers can be operated close to the maximum efficiency range by this
operation.

Electric motors- motor efficiency computation, energy efficient motors

Introduction

Motors convert electrical energy into mechanical energy by the interaction between the magnetic
fields set up in the stator and rotor windings. Industrial electric motors can be broadly classified
as induction motors, direct current motors or synchronous motors. All motor types have the same
four operating components: stator (stationary windings), rotor (rotating windings), bearings, and
frame (enclosure).

Motor Types
Direct-Current Motors

Direct-Current motors, as the name implies, use direct-unidirectional, current. Direct current
motors are used in special applications- where high torque starting or where smooth acceleration
over a broad speed range is required.

Induction Motors

Induction motors are the most commonly used prime mover for various equipments in industrial
applications. In induction motors, the induced magnetic field of the stator winding induces a
current in the rotor. This induced rotor current produces a second magnetic field, which tries to
oppose the stator magnetic field, and this causes the rotor to rotate. The 3-phase squirrel cage
motor is the workhorse of industry; it is rugged and reliable, and is by far the most common motor
type used in industry. These motors drive pumps, blowers and fans, compressors, conveyers and
production lines. The 3-phase induction motor has three windings each connected to a separate
phase of the power supply.

Synchronous Motors

AC power is fed to the stator of the synchronous motor. The rotor is fed by DC from a separate
source. The rotor magnetic field locks onto the stator rotating magnetic field and rotates at the
same speed. The speed of the rotor is a function of the supply frequency and the number of
magnetic poles in the stator. While induction motors rotate with a slip, i.e., rpm is less than the
synchronous speed, the synchronous motor rotate with no slip, i.e., the RPM is same as the
synchronous speed governed by supply frequency and number of poles. The slip energy is provided
by the D.C. excitation power.

Motor Characteristics

Motor Speed

The speed of a motor is the number of revolutions in a given time frame, typically revolutions per
minute (RPM). The speed of an AC motor depends on the frequency of the input power and the
number of poles for which the motor is wound. The synchronous speed in RPM is given by the
following equation, where the frequency is in hertz or cycles per second:
Indian motors have synchronous speeds like 3000 / 1500 / 1000 / 750 / 600 / 500 / 375 RPM
corresponding to no. of poles being 2, 4, 6, 8, 10, 12, 16 (always even) and given the mains
frequency of 50 cycles / sec.

Slip

The actual speed, with which the motor operates, will be less than the synchronous speed.
Thedifference between synchronous and full load speed is called slip and is measured in [Link]
is calculated using this equation:

As per relation stated above, the speed of an AC motor is determined by the number of motor poles
and by the input frequency. It can also be seen that theoretically speed of an AC motor can be
varied infinitely by changing the frequency. Manufacturer's guidelines should be referred for
practical limits to speed variation. With the addition of a Variable Frequency Drive (VFD), the
speed of the motor can be decreased as well as increased.

Power Factor

The power factor of the motor is given as:

As the load on the motor comes down, the magnitude of the active current reduces. However, there
is no corresponding reduction in the magnetizing current, which is proportional to supply voltage
with the result that the motor power factor reduces, with a reduction in applied load. Induction
motors, specially those operating below their rated capacity, are the main reason for low power
factor in electric systems.
Motor Efficiency

Two important attributes relating to efficiency of electricity use by A.C. Induction motors are
efficiency (η), defined as the ratio of the mechanical energy delivered at the rotating shaft to the
electrical energy input at its terminals, and power factor (PF). Motors, like other inductive loads,
are characterized by power factors less than one. As a result, the total current draw needed to
deliver the same real power is higher than for a load characterized by a higher [Link] important
effect of operating with a PF less than one is that resistance losses in wiring upstream of the motor
will be higher, since these are proportional to the square of the current. Thus, both a high value for
η and a PF close to unity are desired for efficient overall operation in a plant. Squirrel cage motors
are normally more efficient than slip-ring motors, and higher-speed motors are normally more
efficient than lower-speed motors. Efficiency is also a function of motor temperature.

Totally-enclosed, fan-cooled (TEFC) motors are more efficient than screen protected, drip-proof
(SPDP) motors. Also, as with most equipment, motor efficiency increases with the rated capacity.
The efficiency of a motor is determined by intrinsic losses that can be reduced only by changes in
motor design. Intrinsic losses are of two types: fixed losses - independent of motor load, and
variable losses - dependent on load. Fixed losses consist of magnetic core losses and friction and
windage losses. Magnetic core losses (sometimes called iron losses) consist of eddy current and
hysteresis losses in the stator. They vary with the core material and geometry and with input
voltage. Friction and windage losses are caused by friction in the bearings of the motor and
aerodynamic losses associated with the ventilation fan and other rotating parts. Variable losses
consist of resistance losses in the stator and in the rotor and miscellaneous stray losses. Resistance
to current flow in the stator and rotor result in heat generation that is proportional to the resistance
of the material and the square of the current (I2 R). Stray losses arise from a variety of sources and
are difficult to either measure directly or to calculate, but are generally proportional to the square
of the rotor current. Part-load performance characteristics of a motor also depend on its design.
Both η and PF fall to very low levels at low loads. The Figures shows the effect of load on power
factor and efficiency. It can be seen that power factor drops sharply at part loads. The Figure shows
the effect of speed on power factor.

Field Tests for Determining Efficiency

No Load Test: The motor is run at rated voltage and frequency without any shaft load. Input power,
current, frequency and voltage are noted. The no load P.F. is quite low and hence low PF
wattcmeters are required. From the input power, stator I2 R losses under no load are subtracted to
give the sum of Friction and Windage (F&W) and core losses. To separate core and F & W losses,
test is repeated at variable voltages. It is useful to plot no-load input kW versus Voltage; the
intercept is Friction & Windage kW loss component.F&W and core losses = No load power (watts)
- (No load current)2 × Stator resistance Stator and Rotor I2 R Losses: The stator winding resistance
is directly measured by a bridge or volt amp method. The resistance must be corrected to the
operating temperature. For modern motors, the operating temperature is likely to be in the range
of 100°C to 120°C and necessary correction should be made. Correction to 75°C may be
inaccurate. The correction factor is given as follows :

The rotor resistance can be determined from locked rotor test at reduced frequency, but rotor I2R
losses are measured from measurement of rotor slip. Rotor I2 R losses = Slip × (Stator Input –
Stator I2 R Losses – Core Loss) Accurate measurement of slip is possible by stroboscope or non-
contact type tachometer. Slip also must be corrected to operating temperature.

Stray Load Losses: These losses are difficult to measure with any accuracy. IEEE Standard 112
gives a complicated method, which is rarely used on shop floor. IS and IEC standards take a fixed
value as 0.5 % of input. The actual value of stray losses is likely to be more. IEEE – 112 specifies
values from 0.9 % to 1.8 %

Pointers for Users:

It must be clear that accurate determination of efficiency is very difficult. The same motor tested
by different methods and by same methods by different manufacturers can give a difference of 2
%. In view of this, for selecting high efficiency motors, the following can be done:

a) When purchasing large number of small motors or a large motor, ask for a detailed test
certificate. If possible, try to remain present during the tests; this will add cost.

b) See that efficiency values are specified without any tolerance

c) Check the actual input current and kW, if replacement is done

d) For new motors, keep a record of no load input power and current

e) Use values of efficiency for comparison and for confirming; rely on measured inputs for all
calculations. R2 235 + t2 = , where, t1 = ambient temperature, °C & t2 = operating temperature,°C.
R1 235 +t1

Estimation of efficiency in the field can be done as follows:

a) Measure stator resistance and correct to operating temperature. From rated current value, I 2 R
losses are calculated.

b) From rated speed and output, rotor I2 R losses are calculated

c) From no load test, core and F & W losses are determined for stray loss

The method is illustrated by the following example:

Example:
Energy-Efficient Motors

Energy-efficient motors (EEM) are the ones in which, design improvements are incorporated
specifically to increase operating efficiency over motors of standard design (see Figure).Design
improvements focus on reducing intrinsic motor losses. Improvements include the use of lower-
loss silicon steel, a longer core (to increase active material), thicker wires (to reduce resistance),
thinner laminations, smaller air gap between stator and rotor, copper instead of aluminium bars in
the rotor, superior bearings and a smaller fan, [Link]-efficient motors now available in India
operate with efficiencies that are typically 3 to 4 percentage points higher than standard motors. In
keeping with the stipulations of the BIS,energy-efficient motors are designed to operate without
loss in efficiency at loads between 75% and 100 % of rated capacity. This may result in major
benefits in varying load applications. The power factor is about the same or may be higher than
for standard motors. Furthermore, energy efficient motors have lower operating temperatures and
noise levels, greater ability to accelerate higher-inertia loads, and are less affected by supply
voltage fluctuations.

Measures adopted for energy efficiency address each loss specifically as under:

Stator and Rotor I2 R Losses

These losses are major losses and typically account for 55% to 60% of the total losses. I2 R losses
are heating losses resulting from current passing through stator and rotor conductors. I2 R losses
are the function of a conductor resistance, the square of current. Resistance of conductor is a
function of conductor material, length and cross sectional area. The suitable selection of copper
conductor size will reduce the resistance. Reducing the motor current is most readily accomplished
by decreasing the magnetizing component of current. This involves lowering the operating flux
density and possible shortening of air gap. Rotor I2 R losses are a function of the rotor conductors
(usually aluminum) and the rotor slip. Utilization of copper conductors will reduce the winding
resistance. Motor operation closer to synchronous speed will also reduce rotor I2 R losses.

Core Losses
Core losses are those found in the stator-rotor magnetic steel and are due to hysterisis effect and
eddy current effect during 50 Hz magnetization of the core material. These losses are independent
of load and account for 20 – 25 % of the total losses. The hysterisis losses which are a function of
flux density, are be reduced by utilizing lowloss grade of silicon steel laminations. The reduction
of flux density is achieved by suitable increase in the core length of stator and rotor. Eddy current
losses are generated by circulating current within the core steel laminations. These are reduced by
using thinner laminations.

Friction and Windage Losses

Friction and windage losses results from bearing friction, windage and circulating air through the
motor and account for 8 – 12 % of total losses. These losses are independent of load. The reduction
in heat generated by stator and rotor losses permit the use of smaller fan. The windage losses also
reduce with the diameter of fan leading to reduction in windage losses.

Stray Load-Losses

These losses vary according to square of the load current and are caused by leakage flux induced
by load currents in the laminations and account for 4 to 5 % of total losses. These losses are reduced
by careful selection of slot numbers, tooth/slot geometry and air gap. Energy efficient motors cover
a wide range of ratings and the full load efficiencies are higher by 3 to 7 %. The mounting
dimensions are also maintained as per IS1231 to enable easy replacement As a result of the
modifications to improve performance; the costs of energy-efficient motors are higher than those
of standard motors.

The higher cost will often be paid back rapidly in saved operating costs, particularly in new
applications or end-of-life motor replacements. In cases where existing motors have not reached
the end of their useful life, the economics will be less clearly positive. Because the favorable
economics of energy-efficient motors are based on savings in operating costs, there may be certain
cases which are generally economically ill-suited to energy efficient motors. These include highly
intermittent duty or special torque applications such as hoists and cranes, traction drives, punch
presses, machine tools, and centrifuges. In addition, energy, efficient designs of multi-speed
motors are generally not available. Furthermore, energy efficient motors are not yet available for
many special applications, e.g. for flame-proof operation in oil-field or fire pumps or for very low
speed applications (below 750 rpm). Also,most energy-efficient motors produced today are
designed only for continuous duty cycle operation. Given the tendency of over sizing on the one
hand and ground realities like ; voltage, frequency variations, efficacy of rewinding in case of a
burnout, on the other hand, benefits of EEM's can be achieved only by careful selection,
implementation, operation and maintenance efforts of energy managers.

A summary of energy efficiency improvements in EEMs is given in the Table

Pumps:

A pump is a machine for raising a liquid - a relatively incompressible fluid - to a higher level of
pressure or head.

Pump Types

Pumps come in a variety of sizes for a wide range of applications. They can be classified according
to their basic operating principle as dynamic or displacement pumps. Dynamic pumps can be sub-
classified as centrifugal and special effect pumps. Displacement pumps can be sub-classified as
rotary or reciprocating pumps. In principle, any liquid can be handled by any of the pump designs.
Where different pump designs could be used, the centrifugal pump is generally the most
economical followed by rotary and reciprocating pumps. Although, positive displacement pumps
are generally more efficient than centrifugal pumps, the benefit of higher efficiency tends to be
offset by increased maintenance costs. Since, worldwide, centrifugal pumps account for the
majority of electricity used by pumps, the focus of this chapter is on centrifugal pump. Pumps are
in general classified as Centrifugal Pumps (or Roto-dynamic pumps) and Positive Displacement
Pumps.

Centrifugal Pumps (Roto-dynamic pumps)

The centrifugal or roto-dynamic pump produce a head and a flow by increasing the velocity of the
liquid through the machine with the help of the rotating vane impeller. Centrifugal pumps include
radial, axial and mixed flow units.

Centrifugal pumps can be classified further as

Centrifugal pumps can be classified further as

• end suction pumps

• in-line pumps
• double suction pumps
• vertical multistage pumps
• horizontal multistage pumps
• submersible pumps
• self-priming pumps
• axial-flow pumps
• regenerative pumps
Positive Displacement Pumps
A positive displacement pump operates by alternating filling a cavity and then displacing a given
volume of liquid. A positive displacement pump delivers a constant volume of liquid for each
cycle independent of discharge pressure or head.
The positive displacement pump can be classified as:

• Reciprocating pumps - piston, plunger and diaphragm

• Power pumps
• Steam pumps
• Rotary pumps - gear, lobe, screw, vane, regenerative (peripheral) and progressive cavity

Selecting between Centrifugal or Positive Displacement Pumps

Selecting between a Centrifugal Pump or a Positive Displacement Pump is not always straight
forward.
Flow Rate and Pressure Head

The two types of pumps behave very differently regarding pressure head and flow rate:

• The Centrifugal Pump has varying flow depending on the system pressure or head
• The Positive Displacement Pump has more or less a constant flow regardless of the system
pressure or head. Positive Displacement pumps generally makes more pressure than
Centrifugal Pump's.

Capacity and Viscosity

Another major difference between the pump types is the effect of viscosity on capacity:

• In a Centrifugal Pump the flow is reduced when the viscosity is increased

• In a Positive Displacement Pump the flow is increased when viscosity is increased

Liquids with high viscosity fills the clearances of Positive Displacement Pumps causing higher
volumetric efficiencies and Positive Displacement Pumps are better suited for higher viscosity
applications. A Centrifugal Pump becomes very inefficient at even modest viscosity.
Mechanical Efficiency

The pumps behaves different considering mechanical efficiency as well.

 • Changing the system pressure or head has little or no effect on the flow rate in a Positive
Displacement Pump
• Changing the system pressure or head may have a dramatic effect on the flow rate in a
Centrifugal Pump

Net Positive Suction Head - NPSH

Another consideration is the Net Positive Suction Head – NPSH

• In a Centrifugal Pump, NPSH varies as a function of flow determined by pressure

• In a Positive Displacement Pump, NPSH varies as a function of flow determined by speed.
Reducing the speed of the Positive Displacement Pump pump, reduces the NPSH

Centrifugal Pumps

A centrifugal pump converts input power to kinetic energy by accelerating liquid in a revolving
device - an impeller. The most common is the volute pump - where fluid enters the pump through
the eye of the impeller which rotates at high speed. The fluid accelerates radially outward from the
pump chasing and a vacuum is created at the impellers eye that continuously draws more fluid into
the pump.
The energy from the pumps prime mover is transfered to kinetic energy according the Bernoulli
equation. The energy transferred to the liquid corresponds to the velocity at the edge or vane tip of
the impeller. The faster the impeller revolves or the bigger the impeller is, the higher will the
velocity of the liquid energy transferred to the liquid be. This is described by the Affinity Laws.

Pressure and Head

If the discharge of a centrifugal pump is pointed straight up into the air the fluid will pumped to a
certain height - or head - called the shut off head. This maximum head is mainly determined by
the outside diameter of the pump's impeller and the speed of the rotating [Link] head will change
as the capacity of the pump is [Link] kinetic energy of a liquid coming out of an impeller is
obstructed by creating a resistance in the flow. The first resistance is created by the pump casing
which catches the liquid and slows it down. When the liquid slows down the kinetic energy is
converted to pressure energy.

• it is the resistance to the pump's flow that is read on a pressure gauge attached to the
discharge line.

A pump does not create pressure, it only creates flow. The gauge pressure is a measurement of the
resistance to flow. In fluids the term head is used to measure the kinetic energy which a pump
creates. Head is a measurement of the height of the liquid column the pump could create from the
kinetic energy the pump gives to the liquid.
 • the main reason for using head instead of pressure to measure a centrifugal pump's energy
is that the pressure from a pump will change if the specific gravity (weight) of the liquid
changes, but the head will not

The pump's performance on any Newtonian fluid can always be described by using the term
head.

Different Types of Pump Head

• Total Static Head - Total head when the pump is not running
• Total Dynamic Head (Total System Head) - Total head when the pump is running
• Static Suction Head - Head on the suction side, with pump off, if the head is higher
than the pump impeller
• Static Suction Lift - Head on the suction side, with pump off, if the head is lower than
the pump impeller
• Static Discharge Head - Head on discharge side of pump with the pump off
• Dynamic Suction Head/Lift - Head on suction side of pump with pump on
• Dynamic Discharge Head - Head on discharge side of pump with pump on

The head is measured in either feet or meters and can be converted to common units for
pressure - like psi, Pa or bar.

• it is important to understand that the pump will pump all fluids to the same height if the
shaft is turning at the same rpm

The only difference between the fluids is the amount of power it takes to get the shaft to the
proper rpm. The higher the specific gravity of the fluid the more power is required
• Centrifugal Pumps are "constant head machines"

Note that the latter is not a constant pressure machine, since pressure is a function of head and
density. The head is constant, even if the density (and therefore pressure) changes.
The head of a pump can be expressed in metric units as:
h = (p2 - p1) / (ρ g) + v2 2 / (2 g) (1)

where
h = total head developed (m)

p2 = pressure at outlet (N/m2)

p1 = pressure at inlet (N/m2)

ρ = density (kg/m3)

g = acceleration of gravity (9.81) m/s2

v2 = velocity at the outlet (m/s)

Head described in simple terms

• a pump's vertical discharge "pressure-head" is the vertical lift in height – usually measured
in feet or m of water - at which a pump can no longer exert enough pressure to move water.
At this point, the pump may be said to have reached its "shut-off" head pressure. In the
flow curve chart for a pump the "shut-off head" is the point on the graph where the flow
rate is zero

Pump Efficiency
Pump efficiency, η (%) is a measure of the efficiency with which the pump transfers useful work
to the fluid
η = Pout / Pin (2)
where
η = efficiency (%)
Pin = power input
Pout = power output
Centrifugal Pumps - Speed Torque Curve

Centrifugal pumps and the characteristic speed torque curve

The speed torque curve characterizes a centrifugal pump. The theoretical characteristic is a
parabola starting from the origin and proportional to the square of the speed.
The torque can be expressed as
T = k n2 (1)
where
T = torque (Nm, lbf ft)
k = constant
n = pump speed or velocity (rpm)
With the discharge valve closed the torque amounts to 30 - 50 % of the nominal torque at full
speed.
Full Load Torque
The torque at full load can be calculated as
T = 30 P / (π n) (2)
where
T = torque (kN m)
P = power (kW)

Positive Displacement Pumps

A Positive Displacement Pump has an expanding cavity on the suction side and a decreasing cavity
on the discharge side. Liquid flows into the pumps as the cavity on the suction side expands and
the liquid flows out of the discharge as the cavity collapses. The volume is a constant given each
cycle of operation.
The positive displacement pumps can be divided in two main classes
• reciprocating

• rotary

The positive displacement principle applies whether the pump is a

• rotary lobe pump
• progressing cavity pump
• rotary gear pump
• piston pump
• diaphragm pump

• screw pump
• gear pump
• vane pump

• regenerative (peripheral) pump

• peristaltic

A Positive Displacement Pump, unlike a Centrifugal or Roto-dynamic Pump, will produce the
same flow at a given speed (RPM) no matter the discharge pressure.

•A Positive Displacement Pumps is a "constant flow machine"

A Positive Displacement Pump must never operate against closed valves on the discharge side of
the pump - it has no shut-off head like Centrifugal Pumps. A Positive Displacement Pump
operating against closed discharge valves continues to produce flow until the pressure in the
discharge line is increased until the line bursts or the pump is severely damaged - or both.A relief
or safety valve on the discharge side of the Positive Displacement Pump is absolute necessary. The
relief valve can be internal or external the pump. An internal valve should in general only be used
as a safety precaution. An external relief valve installed in the discharge line with a return line
back to the suction line or supply tank is highly recommended.
Reciprocating Pumps
Typical reciprocating pumps are
• plunger pumps
• diaphragm pumps

Plunger pumps consist of a cylinder with a reciprocating plunger in it. In the head of the cylinder
the suction and discharge valves are mounted. In the suction stroke the plunger retracts and the
suction valves opens causing suction of fluid into the cylinder. In the forward stroke the plunger
push the liquid out the discharge valve. With only one cylinder the fluid flow varies between
maximum flow when the plunger moves through the middle positions and zero flow when the
plunger is in the end positions. A lot of energy is wasted when the fluid is accelerated in the piping
[Link] and "water hammers" may be a serious problem. In general the problems are
compensated by using two or more cylinders not working in phase with each other.
In a diaphragm pump the plunger pressurizes hydraulic oil which is used to flex a diaphragm in
the pumping cylinder. Diaphragm pumps are used to pump hazardous and toxic fluids.
Rotary Pumps
Typical rotary pumps are
• gear pumps
• lobe pumps

• vane pumps

• progressive cavity pumps

• peripheral pumps

• screw pumps

In a gear pump the liquid is trapped by the opening between the gear teeth of two identical gears
and the chasing of the pump on the suction side. On the pressure side the fluid is squeezed out
when the teeth of the two gears are rotated against each other. A lobe pump operates similar to a
gear pump, but with two lobes driven by external timing gears. The lobes do not make contact. A
progressive cavity pump consists of a metal rotor rotating within an elastomer-lined or elastic
stator. When the rotor turns progressive chambers from suction end to discharge endare formed
between the rotor and stator, moving the fluid.
Fans, blowers, compressed air systems:
Introduction
Fans
• A Fan is a machine used to move fluid or air. It is operated through a motor via
electricity which rotates the blades that are attached to a shaft.
Blowers
•A blower is a machine for moving volumes of a gas with moderate increase of
pressure
Compressors
•A compressor is a machine for raising a gas - a compressible fluid - to a higher level
of pressure.
Fans and blowers provide air for ventilation and industrial process requirements. Fans generate a
pressure to move air (or gases) against a resistance caused by ducts, dampers, or other components
in a fan system. The fan rotor receives energy from a rotating shaft and transmits
it to the [Link] between Fans, Blowers and Compressors Fans, blowers and compressors
are differentiated by the method used to move the air, and by the system pressure they must operate
against. As per American Society of Mechanical Engineers (ASME) the specific ratio – the ratio
of the discharge pressure over the suction pressure – is used for defining the fans, blowers and
compressors

Fan Types:
Fan and blower selection depends on the volume flow rate, pressure, type of material
handled,space limitations, and efficiency. Fan efficiencies differ from design to design and also by
types. Typical ranges of fan efficiencies are given in table
Fans fall into two general categories: centrifugal flow and axial [Link] centrifugal flow, airflow
changes direction twice - once when entering and second when leaving (forward curved, backward
curved or inclined, radial) In axial flow, air enters and leaves the fan with no change in direction
(propeller, tubeaxial,vaneaxial) Depending on their designs, the following are main types of fans:
• Centrifugal fans: In this type of fan, airflow changes direction. They can be inclined,radial,
forward curved, backward curved etc. These kinds of fans are suitable for high temperatures and
low and medium blade tip speeds at high pressures. These can be effectively used for highly
contaminated airstreams.
• Axial Fans: In this type of fan, there is no change in direction of air flow. They can be Vanaxial,
Tubeaxial, and Propeller. They produce lower pressure than the Centrifugal fans. Propeller-type
fans are capable of high-flow rates at low pressures. Tube-axial fans have low/medium pressure
and high flow capability. Vane-axial fans have an inlet or outlet guide vanes, exhibit high pressure
and medium flow-rate capabilities.
The air flow required in the process along with required outlet pressure are key factors determining
the selection of type and size of a fan. Fan enclosure and duct design also determine how efficiently
they can work.
Centrifugal Fan: Types
The major types of centrifugal fan are: radial, forward curved and backward curved Radial fans
are industrial workhorses because of their high static pressures (upto 1400 mm WC) and ability to
handle heavily contaminated airstreams. Because of their simple design, radial fans are well suited
for high temperatures and medium blade tip speeds. Forward-curved fans are used in clean
environments and operate at lower temperatures. They are well suited for low tip speed and high-
airflow work - they are best suited for moving large volumes of air against relatively low pressures.
Backward-inclined fans are more efficient than forward-curved [Link]-inclined fans reach
their peak power consumption and then power demand drops off well within their useable airflow
range. Backward-inclined fans are known as "nonoverloading"because changes in static pressure
do not overload the motor.
Axial Flow Fan: Types
The major types of axial flow fans are: tube axial, vane axial and propeller Tubeaxial fans have a
wheel inside a cylindrical housing, with close clearance between blade and housing to improve
airflow efficiency. The wheel turn faster than propeller fans, enabling operation under high-
pressures 250 – 400 mm WC. The efficiency is up to 65%. Vaneaxial fans are similar to tubeaxials,
but with addition of guide vanes that improve efficiency by directing and straightening the flow.
As a result, they have a higher static pressure with less dependence on the duct static pressure.
Such fans are used generally for pressures upto 500 mmWC. Vaneaxials are typically the most
energy-efficient fans available and should be used whenever possible. Propeller fans usually run
at low speeds and moderate temperatures. They experience a large change in airflow with small
changes in static pressure. They handle large volumes of air at low pressure or free delivery.
Propeller fans are often used indoors as exhaust fans. Outdoor applications include air-cooled
condensers and cooling towers. Efficiency is low – approximately 50% or less.
The different types of fans, their characteristics and typical applications are given in Table
Blowers
Blower is equipment or a device which increases the velocity of air or gas when it is passed through
equipped impellers. They are mainly used for flow of air/gas required for exhausting, aspirating,
cooling, ventilating, conveying etc. Blower is also commonly known as Centrifugal Fans in
industry. In a blower, the inlet pressure is low and is higher at the outlet. The kinetic energy of the
blades increases the pressure of the air at the outlet. Blowers are mainly used in industries for
moderate pressure requirements where the pressure is more than the fan and less than the
compressor.
Blower Types
Blowers can achieve much higher pressures than fans, as high as 1.20 kg/cm2 . They are also used
to produce negative pressures for industrial vacuum systems. Major types are: centrifugal blower
and positive-displacement blower. Centrifugal blowers look more like centrifugal pumps than fans.
The impeller is typically gear driven and rotates as fast as 15,000 rpm. In multi-stage blowers, air
is accelerated as it passes through each impeller. In single-stage blower, air does not take many
turns, and hence it is more efficient. Centrifugal blowers typically operate against pressures of 0.35
to 0.70 kg/cm2 , but can achieve higher pressures. One characteristic is that airflow tends to drop
drastically as system pressure increases, which can be a disadvantage in material conveying
systems that depend on a steady air volume. Because of this, they are most often used in
applications that are not prone to clogging. Positive-displacement blowers have rotors, which
"trap" air and push it through housing. Positive-displacement blowers provide a constant volume
of air even if the system pressure varies. They are especially suitable for applications prone to
clogging, since they can produce enough pressure - typically up to 1.25 kg/cm2 - to blow clogged
materials free. They turn much slower than centrifugal blowers (e.g. 3,600 rpm), and are often belt
driven to facilitate speed changes.
Compressed air systems
Air compressors are used in a variety of industries to supply process requirements, to operate neumatic
tools and equipment, and to meet instrumentation needs.
Types of Compressors
Compressors are broadly classified as: Positive displacement compressor and Dynamic
compressor.
Positive displacement compressors increase the pressure of the gas by reducing the volume.
Positive displacement compressors are further classified as reciprocating and rotary
compressors.
Dynamic compressors increase the air velocity, which is then converted to increased pressure at
the outlet. Dynamic compressors are basically centrifugal compressors and are further classified
as radial and axial flow [Link] flow and pressure requirements of a given application determine
the suitability of a particulars type of compressor.

Positive displacement compressors use a system which induces in a volume of air in a chamber,
and then reduce the volume of the chamber to compress the air. As the name suggests, there is a
displacement of the component that reduces the volume of the chamber thereby compressing
air/gas. On the other hand, in a dynamic compressor, there is a change in velocity of the fluid
resulting in kinetic energy which creates pressure. Reciprocating compressors use pistons where
discharge pressure of air is high, the quantity of air handled is low and which has a low speed of
the compressor. They are suitable for medium and high-pressure ratio and gas volumes. On the
other hand, rotary compressors are suitable for low and medium pressures and for large volumes.
These compressors do not have any pistons and crankshaft. Instead, these compressors have
screws, vanes, scrolls etc. So they can be further categorized on the basis of the component they
are equipped with.
Types of Rotary compressors
• Scroll: In this equipment, air is compressed using two spirals or scrolls. One scroll is fixed and
does not move and the other one movese in circular motion. Air gets trapped inside the spiral way
of that element and gets compressed at the middle of the [Link] are often with oil-free designs
and require low maintenance.
• Vane: This consists of vanes that move in and out inside an impeller and compression occurs
because of this sweeping motion. This forces the vapor into small volume sections, changing it
into high pressure and high temperature vapor.
• Lobe: This consists of two lobes which rotate inside a closed casing. These lobes are displaced
with 90 degrees to one another. As the rotor rotates, air is drawn into the inlet side of the cylinder
casing and is pushed with a force out from the outlet side against the system pressure. The
compressed air is then delivered to delivery line.
• Screw: This is equipped with two inter-meshing screws which traps air between the screw and
the compressor casing, which results in squeezing and delivering it at a higher pressure from the
delivery valve. The screw compressors are suitable and efficient in low air pressure requirements.
In comparison to a reciprocating compressor,the compressed air delivery is continuous in this type
of compressor and it is quiet in operation.
• Scroll: The scroll type compressors have scrolls driven by the prime mover. The scrolls outer
edges trap air and then as they rotate, the air travel from outwards to inwards thus getting
compressed due to a reduction in the area. The compressed air is delivered through central space
of the scroll to the delivery airline.
• Liquid ring: In this type of compressor vanes are built inside a cylindrical casing. When the motor

rotates, gas gets compressed. Then liquid mostly water is fed into the device and by centrifugal
acceleration, it forms a liquid ring through the vanes, which in turn forms a compressing chamber.
It is capable of compressing all gases and vapors, even with dust and liquids.
Reciprocating Compressor
• Single-Acting Compressors: It has piston working on air only in one direction. The air is
compressed only on the top part of the piston.
• Double-Acting Compressors: It has two sets of suction/intake and delivery valves on both sides
of the piston. Both sides of the piston are utilized in compressing the air.
Dynamic Compressors

The main difference between displacement and dynamic compressors is that a displacement
compressor works at a constant flow, whereas a dynamic compressor such as Centrifugal and
Axial works at a constant pressure and their performance is affected by external conditions such
as changes in inlet temperatures etc. In an axial compressor, the gas or fluid flows parallel to the
axis of rotations or axially. It is a rotating compressor that can continuously pressurize gases. The
blades of an axial compressor are relatively closer to each other. In a centrifugal compressor, fluid
enters from the center of the impeller, and moves outward through the periphery by guide blades
thereby reducing the velocity and increasing pressure. It is also known as a turbo compressor. They
are efficient and reliable compressors. However, its compression ratio is lesser than axial
compressors. Also, centrifugal compressors are more reliable if API (American petroleum
Institute) 617 standards are followed.

Compressor Performance

A. Capacity of a Compressor
Capacity of a compressor is the full rated volume of flow of gas compressed and delivered at
conditions of total temperature, total pressure, and composition prevailing at the compressor inlet.
It sometimes means actual flow rate, rather than rated volume of flow. This also termed
as Free Air Delivery (FAD) i.e. air at atmospheric conditions at any specific location. Because
the altitude, barometer, and temperature may vary at different localities and at different times,
it follows that this term does not mean air under identical or standard conditions.

B. Compressor Efficiency Definitions

Several different measures of compressor efficiency are commonly used: volumetric efficiency,
adiabatic efficiency, isothermal efficiency and mechanical efficiency. Adiabatic and isothermal
efficiencies are computed as the isothermal or adiabatic power divided by the actual power
consumption. The figure obtained indicates the overall efficiency of compressor and drive motor.

The calculation of isothermal power does not include power needed to overcome friction and
generally gives an efficiency that is lower than adiabatic efficiency. The reported value of
efficiency is normally the isothermal efficiency. This is an important consideration when selecting
compressors based on reported values of efficiency.
For practical purposes, the most effective guide in comparing compressor efficiencies is the
specific power consumption ie kW/volume flow rate , for different compressors that would provide
identical duty.
Compressed Air System Components
Compressed air systems consist of following major components: Intake air filters, inter-stage
coolers, after coolers, air dryers, moisture drain traps, receivers, piping network, filters, regulators
and lubricators.
• Intake Air Filters: Prevent dust from entering compressor; Dust causes sticking valves,scoured
cylinders, excessive wear etc.
• Inter-stage Coolers: Reduce the temperature of the air before it enters the next stage to reduce
the work of compression and increase efficiency. They are normally water cooled.
• After Coolers: The objective is to remove the moisture in the air by reducing the temperature in
a water-cooled heat exchanger.
• Air-dryers: The remaining traces of moisture after after-cooler are removed using air dryers,as
air for instrument and pneumatic equipment has to be relatively free of any moisture. The moisture
is removed by using adsorbents like silica gel /activated carbon, or refrigerant dryers,or heat of
compression dryers.
• Moisture Drain Traps: Moisture drain traps are used for removal of moisture in the compressed
air. These traps resemble steam traps. Various types of traps used are manual drain cocks, timer
based / automatic drain valves etc.
• Receivers: Air receivers are provided as storage and smoothening pulsating air output - reducing
pressure variations from the compressor
Refrigeration and air conditioning systems
1.22.0 Introduction
The Heating, Ventilation and Air Conditioning (HVAC) and refrigeration system transfers the heat
energy from or to the products, or building environment. Energy in form of electricity or heat is
used to power mechanical equipment designed to transfer heat from a colder, low-energy
level to a warmer, high-energy level Refrigeration deals with the transfer of heat from a low
temperature level at the heat source to a high temperature level at the heat sink by using a low
boiling [Link] are several heat transfer loops in refrigeration system as described below:
In the Figure thermal energy moves from left to right as it is extracted from the space and expelled
into the outdoors through five loops of heat transfer:
– Indoor air loop. In the leftmost loop, indoor air is driven by the supply air fan through a cooling
coil, where it transfers its heat to chilled water. The cool air then cools the building space.
– Chilled water loop. Driven by the chilled water pump, water returns from the cooling coil to the
chiller’s evaporator to be re-cooled.
– Refrigerant loop. Using a phase-change refrigerant, the chiller’s compressor pumps heat from
the chilled water to the condenser water.
– Condenser water loop. Water absorbs heat from the chiller’s condenser, and the condenser water
pump sends it to the cooling tower.
– Cooling tower loop. The cooling tower’s fan drives air across an open flow of the hot condenser
water, transferring the heat to the outdoors.
Air-Conditioning Systems Depending on applications, there are several options / combinations,
which are available for use as given below:
• Air Conditioning (for comfort / machine)
• Split air conditioners
• Fan coil units in a larger system
• Air handling units in a larger system

Refrigeration Systems (for processes)

• Small capacity modular units of direct expansion type similar to domestic refrigerators, small
capacity refrigeration units.
• Centralized chilled water plants with chilled water as a secondary coolant for temperature range
over 5°C typically. They can also be used for ice bank formation.
• Brine plants, which use brines as lower temperature, secondary coolant, for typically sub zero
temperature applications, which come as modular unit capacities as well as large centralized plant
capacities.
• The plant capacities upto 50 TR are usually considered as small capacity, 50 – 250 TR as medium

capacity and over 250 TR as large capacity units.

A large industry may have a bank of such units, often with common chilled water pumps,condenser
water pumps, cooling towers, as an off site utility. The same industry may also have two or three
levels of refrigeration & air conditioning such as:
• Comfort air conditioning (20° – 25° C)
• Chilled water system (8° – 10° C)
• Brine system (sub-zero applications)
Two principle types of refrigeration plants found in industrial use are: Vapour Compression
Refrigeration (VCR) and Vapour Absorption Refrigeration (VAR). VCR uses mechanical energy
as the driving force for refrigeration, while VAR uses thermal energy as the driving force for
refrigeration.
Types of Refrigeration System
Vapour Compression Refrigeration
Heat flows naturally from a hot to a colder body. In refrigeration system the opposite must occur
i.e. heat flows from a cold to a hotter body. This is achieved by using a substance called a
refrigerant, which absorbs heat and hence boils or evaporates at a low pressure to form a [Link]
gas is then compressed to a higher pressure, such that it transfers the heat it has gained to ambient
air or water and turns back (condenses) into a liquid. In this way heat is absorbed, or removed,
from a low temperature source and transferred to a higher temperature source. The refrigeration
cycle can be broken down into the following stages.
1 – 2 Low pressure liquid refrigerant in the evaporator absorbs heat from its surroundings,usually
air, water or some other process liquid. During this process it changes its state from a liquid to a
gas, and at the evaporator exit is slightly superheated.
2 – 3 The superheated vapour enters the compressor where its pressure is raised. There will also
be a big increase in temperature, because a proportion of the energy input into the compression
process is transferred to the refrigerant.
3 – 4 The high pressure superheated gas passes from the compressor into the condenser. The initial
part of the cooling process (3 - 3a) desuperheats the gas before it is then turned back into liquid
(3a - 3b). The cooling for this process is usually achieved by using air or water. A further reduction
in temperature happens in the pipe work and liquid receiver (3b - 4), so that the refrigerant liquid
is sub-cooled as it enters the expansion device.
4 – 1 The high-pressure sub-cooled liquid passes through the expansion device, which both reduces
its pressure and controls the flow into the evaporator.

It can be seen that the condenser has to be capable of rejecting the combined heat inputs of the
evaporator and the compressor; i.e. (1 – 2) + (2 – 3) has to be the same as (3 – 4). There is no heat
loss or gain through the expansion device.
DG SET SYSTEM
1.23.0 Introduction
Diesel engine is the prime mover, which drives an alternator to produce electrical energy. In the
diesel engine, air is drawn into the cylinder and is compressed to a high ratio (14:1 to 25:1).During
this compression, the air is heated to a temperature of 700–900°C. A metered quantity of diesel
fuel is then injected into the cylinder, which ignites spontaneously because of the high temperature.
Hence, the diesel engine is also known as compression ignition (CI) [Link] set can be
classified according to cycle type as: two stroke and four stroke. However, the bulk of IC engines
use the four stroke cycle. Let us look at the principle of operation of the four-stroke diesel engine.
Four Stroke - Diesel Engine
The 4 stroke operations in a diesel engine are: induction stroke, compression stroke, ignition and
power stroke and exhaust stroke.
1st: Induction stroke - while the inlet valve is open, the descending piston draws in fresh air.
2nd: Compression stroke - while the valves are closed, the air is compressed to a pressure of
up to 25 bar.
3rd: Ignition and power stroke - fuel is injected, while the valves are closed (fuel injection actually
starts at the end of the previous stroke), the fuel ignites spontaneously and the piston is forced
downwards by the combustion gases.
4th: Exhaust stroke - the exhaust valve is open and the rising piston discharges the spent gases
from the cylinder.
Since power is developed during only one stroke, the single cylinder four-stroke engine has a low
degree of uniformity. Smoother running is obtained with multi cylinder engines because the cranks
are staggered in relation to one another on the crankshaft. There are many variations of engine
configuration, for example. 4 or 6 cylinder, in-line, horizontally opposed, vee or radial
configurations.
DG Set as a System
A diesel generating set should be considered as a system since its successful operation depends on
the well-matched performance of the components, namely:
a) The diesel engine and its accessories.
b) The AC Generator.
c) The control systems and switchgear.
d) The foundation and power house civil works.
e) The connected load with its own components like heating, motor drives, lighting etc.
It is necessary to select the components with highest efficiency and operate them at their optimum
efficiency levels to conserve energy in this system.
Power factor Basics
In all industrial electrical distribution systems, the major loads are resistive and [Link]
loads are incandescent lighting and resistance heating. In case of pure resistive loads,the voltage
(V), current (I), resistance (R) relations are linearly related, i.e.
V = I x R and Power (kW) = V x I

Typical inductive loads are A.C. Motors, induction furnaces, transformers and ballast-type
lighting. Inductive loads require two kinds of power: a) active (or working) power to perform the
work and b) reactive power to create and maintain electro-magnetic [Link] power is
measured in kW (Kilo Watts). Reactive power is measured in kVAr (KiloVolt-Amperes
Reactive).The vector sum of the active power and reactive power make up the total (or apparent)
power used. This is the power generated by the SEBs for the user to perform a given amount of
[Link] Power is measured in kVA (Kilo Volts-Amperes) .

The active power (shaft power required or true power required) in kW and the reactive power
required (kVAr) are 90° apart vectorically in a pure inductive circuit i.e., reactive power kVAr
lagging the active kW. The vector sum of the two is called the apparent power or kVA, as
illustrated above and the kVA reflects the actual electrical load on distribution [Link] ratio of
kW to kVA is called the power factor, which is always less than or equal to [Link],
when electric utilities supply power, if all loads have unity power factor,maximum power can be
transferred for the same distribution system capacity. However, as the loads are inductive in nature,
with the power factor ranging from 0.2 to 0.9, the electrical
distribution network is stressed for capacity at low power factors.

Improving Power Factor

The solution to improve the power factor is to add power factor correction capacitors to the plant
power distribution system. They act as reactive power generators, and provide the needed reactive
power to accomplish kW of work. This reduces the amount of reactive power, and thus total power,
generated by the utilities.
Example:
A chemical industry had installed a 1500 kVA transformer. The initial demand of the plant was
1160 kVA with power factor of 0.70. The % loading of transformer was about 78% (116~0/1500
= 77.3%). To improve the power factor and to avoid the penalty, the unit had added about 410
kVAr in motor load end. This improved the power factor to 0.89, and reduced the required kVA
to 913, which is the vector sum of kW and kVAr .
After improvement the plant had avoided penalty and the 1500 kVA transformer now loaded
only to 60% of capacity. This will allow the addition of more load in the future to be supplied by
the transformer.

The advantages of PF improvement by capacitor addition

a) Reactive component of the network is reduced and so also the total current in the system from
the source end.
b) I2 R power losses are reduced in the system because of reduction in current.
c) Voltage level at the load end is increased.
d) kVA loading on the source generators as also on the transformers and lines upto the capacitors
reduces giving capacity relief. A high power factor can help in utilising the full capacity of your
electrical system.
Cost benefits of PF improvement
While costs of PF improvement are in terms of investment needs for capacitor addition the
benefits to be quantified for feasibility analysis are:
a) Reduced kVA (Maximum demand) charges in utility bill
b) Reduced distribution losses (KWH) within the plant network
c) Better voltage at motor terminals and improved performance of motors
d) A high power factor eliminates penalty charges imposed when operating with a low power
factor e) Investment on system facilities such as transformers, cables, switchgears etc for
delivering load is reduced.
Selection and location of capacitors
Direct relation for capacitor sizing.
kVAr Rating = kW [tan φ1 – tan φ2]
where kVAr rating is the size of the capacitor needed, kW is the average power drawn, tan φ1 is
the trigonometric ratio for the present power factor, and tan φ2 is the trigonometric ratio for the
desired PF.
φ1 = Existing (Cos-1 PF1) and φ2 = Improved (Cos-1 PF2)

Performance Assessment of Power Factor Capacitors

Voltage effects:
Ideally capacitor voltage rating is to match the supply voltage. If the supply voltage is lower,the
reactive kVAr produced will be the ratio V1 2 /V2 2 where V1 is the actual supply voltage,V2 is
the rated voltage. On the other hand, if the supply voltage exceeds rated voltage, the life of the
capacitor is adversely affected.
Material of capacitors:
Power factor capacitors are available in various types by dielectric material used as; paper/
polypropylene etc. The watt loss per kVAr as well as life vary with respect to the choice of the
dielectric material and hence is a factor to be considered while selection.
Connections:
Shunt capacitor connections are adopted for almost all industry/ end user applications, while series
capacitors are adopted for voltage boosting in distribution networks.
Operational performance of capacitors:
This can be made by monitoring capacitor charging current vis- a- vis the rated charging current.
Capacity of fused elements can be replenished as per requirements. Portable analyzers can be used
for measuring kVAr delivered as well as charging current. Capacitors consume 0.2 to 6.0 Watt per
kVAr, which is negligible in comparison to [Link] checks that need to be adopted in use
of capacitors are :
i) Nameplates can be misleading with respect to ratings. It is good to check by charging currents.
ii) Capacitor boxes may contain only insulated compound and insulated terminals with no
capacitor elements inside.
iii) Capacitors for single phase motor starting and those used for lighting circuits for voltage
boost, are not power factor capacitor units and these cannot withstand power system condition
Harmonics
In any alternating current network, flow of current depends upon the voltage applied and the
impedance (resistance to AC) provided by elements like resistances, reactances of inductive and
capacitive nature. As the value of impedance in above devices is constant, they are called linear
whereby the voltage and current relation is of linear nature. However in real life situation,various
devices like diodes, silicon controlled rectifiers, PWM systems, thyristors, voltage & current
chopping saturated core reactors, induction & arc furnaces are also deployed for various
requirements and due to their varying impedance characteristic, these NON LINEAR devices
cause distortion in voltage and current waveforms which is of increasing concern in recent times.
Harmonics occurs as spikes at intervals which are multiples of the mains (supply) frequency and
these distort the pure sine wave form of the supply voltage & current. Harmonics are multiples of
the fundamental frequency of an electrical power system.
If, for example, the fundamental frequency is 50 Hz, then the 5th harmonic is five times that
frequency, or 250 [Link], the 7th harmonic is seven times the fundamental or 350 Hz, and
so on for higher order harmonics. Harmonics can be discussed in terms of current or voltage. A
5th harmonic current is simply a current flowing at 250 Hz on a 50 Hz system. The 5th harmonic
current flowing through the system impedance creates a 5th harmonic voltage. Total Harmonic
Distortion (THD) expresses the amount of harmonics. The following is the formula for calculating
the THD for current:

When harmonic currents flow in a power system, they are known as “poor power quality” or “dirty
power”. Other causes of poor power quality include transients such as voltage spikes,surges, sags,
and ringing. Because they repeat every cycle, harmonics are regarded as a steadystate cause of
poor power [Link] expressed as a percentage of fundamental voltage THD is given by, where
V1 is the fundamental frequency voltage and Vn is nth harmonic voltage component.
Major Causes of Harmonics
Devices that draw non-sinusoidal currents when a sinusoidal voltage is applied create harmonics.
Frequently these are devices that convert AC to DC. Some of these devices are listed below:
Electronic Switching Power Converters
• Computers, Uninterruptible power supplies (UPS), Solid-state rectifiers
• Electronic process control equipment, PLC’s, etc

• Electronic lighting ballasts, including light dimmer

• Reduced voltage motor controllers
Arcing Devices
• Discharge lighting, e.g. Fluorescent, Sodium and Mercury vapor
• Arc furnaces, Welding equipment, Electrical traction system
Ferromagnetic Devices
• Transformers operating near saturation level
• Magnetic ballasts (Saturated Iron core)
• Induction heating equipment, Chokes, Motors
Appliances
• TV sets, air conditioners, washing machines, microwave ovens
• Fax machines, photocopiers, printers

These devices use power electronics like SCRs, diodes, and thyristors, which are a growing
percentage of the load in industrial power systems. The majority use a 6-pulse converter. Most
loads which produce harmonics, do so as a steady-state phenomenon. A snapshot reading of an
operating load that is suspected to be non-linear can determine if it is producing
[Link] each load would manifest a specific harmonic [Link] problems can
arise from harmonic currents in a power system. Some problems are easy to detect; others exist
and persist because harmonics are not suspected. Higher RMS current and voltage in the system
are caused by harmonic currents, which can result in any of the problems listed below:

1. Blinking of Incandescent Lights - Transformer Saturation

2. Capacitor Failure - Harmonic Resonance
3. Circuit Breakers Tripping - Inductive Heating and Overload
4. Conductor Failure - Inductive Heating
5. Electronic Equipment Shutting down - Voltage Distortion
6. Flickering of Fluorescent Lights - Transformer Saturation
7. Fuses Blowing for No Apparent Reason - Inductive Heating and Overload
8. Motor Failures (overheating) - Voltage Drop
9. Neutral Conductor and Terminal Failures - Additive Triplen Currents
10. Electromagnetic Load Failures - Inductive Heating
11. Overheating of Metal Enclosures - Inductive Heating
12. Power Interference on Voice Communication - Harmonic Noise
13. Transformer Failures - Inductive Heating
Overcoming Harmonics
Tuned Harmonic filters consisting of a capacitor bank and reactor in series are designed and
adopted for suppressing harmonics, by providing low impedance path for harmonic component.
 MODULE-4

Power Factor:
Traditionally, power factor has been defined as the ratio of the kilowatts of power divided by the
kilovolt-amperes drawn by a load or system, or the cosine of the electrical angle between the kilowatts
and kilovolt-amperes. However, this definition of power factor is valid only if the voltages and currents
are sinusoidal. When the voltages and/or currents are nonsinusoidal, the power factor is reduced as a
result of voltage and current harmonics in the system. Therefore, the discussion of power factor will
be considered for the two categories, i.e., systems in which the voltages and currents are substantially
sinusoidal and systems in which the voltages and currents are non-sinusoidal as a result of nonlinear
loads.

Methods of Power Factor Improvement:

The more popular method of improving the power factor on low voltage distribution systems is to use
power capacitors to supply the leading reactive power required. The amount and location of the
corrective capacitance must be determined from a survey of the distribution system and the source of
the low-power factor loads. In addition, the total initial cost and payback time of the capacitor
installation must be considered. To reduce the system losses, the power factor correction capacitors
should be electrically located as close to the low-power factor loads as possible. In some cases, the
capacitors can be located at a particular power feeder. In other cases, with large-horsepower motors,
the capacitors can be connected as close to the motor terminals as possible. The power factor capacitors
are connected across the power lines in parallel with the low-power factor load. The number of kilovars
of capacitors required depends on the power factor without correction and the desired corrected value
of the power factor. The power factor and kilovars without correction can be determined by measuring
the power factor, line amperes, and line voltage at the point of correction. For a three-phase system,

The capacitive kilovars required to raise the system to the desired power factor can be calculated
as follows:
Another method of improving powerfactor is connecting a synchronous motor in parallel with
the system and operate it under over excitation condition.

Location of Capacitors:
The power factor correction capacitors should be connected as closely as possible to the low–power
factor load. This is very often determined by the nature and diversity of the load. Figure illustrates
typical points of installation of capacitors:
At the Motor Terminals:
Connecting the power capacitors to the motor terminals and switching the capacitors with the motor
load is a very effective method for correcting the power factor. The benefits of this type of installation
are the following: No extra switches or protective devices are required, and line losses are reduced
from the point of connection back to the power source. Corrective capacitance is supplied only when
the motor is operating. In addition, the correction capacitors can be sized based on the motor nameplate
information, as previously discussed. If the capacitors are connected on the motor side of the overloads,
it will be necessary to change the overloads to retain proper overload protection of the motor. A word
of caution: With certain types of electric motor applications, this method of installation can result in
damage to the capacitors or motor or both.
Never connect the capacitors directly to the motor under any of the following conditions:
• The motor is part of an adjustable-frequency drive system.
• Solid-state starters are used.
• The motor is subject to repetitive switching, or plugging.
• A multispeed motor is used.
• A reversing motor is used.
• There is a possibility that the load may drive the motor (such as a high-inertia load).

In all these cases, self-excitation voltages or peak transient currents can cause damage to the capacitor
and motor. In these types of installations, the capacitors should be switched with a contactor interlocked
with the motor starter.

At the Main Terminal for a Multimotor Machine:

In the case of a machine or system with multiple motors, it is common practice to correct the entire
machine at the entry circuit to the machine. Depending on the loading and duty cycle of the motors, it
may be desirable to switch the capacitors with a contactor interlocked with the motor starters. In this
manner, the capacitors are connected only when the main motors of a multimotor system are operating.
At the Distribution Center or Branch Feeder:
The location of the capacitors at the distribution center or branch feeder is probably most practical
when there is a diversity of small loads on the circuit that require power factor correction. However,
again, the capacitors should be located as close to the low–power factor loads as possible in order to
achieve the maximum benefit of the installation.
THE POWER FACTOR WITH NONLINEAR LOADS:
The growing use of power semiconductors has increased the complexity of system power factor and
its correction. These power semiconductors are used in equipment such as
Rectifiers (converters)
DC motor drive systems
Adjustable-frequency AC drive systems
Solid-state motor starters
Electric heating
Uninterruptible power supplies
Computer power supplies
In the earlier discussion about the power factor in sinusoidal systems, only two components of power
contributed to the total kilovolt-amperes and the resultant power factor: the active or real component,
expressed in kilowatts, and the reactive component, expressed in kilovars. When nonlinear loads using
power semiconductors are used in the power system, the total power factor is made up of three
components:
[Link], or real, component, expressed in kilowatts.
[Link] component, of the fundamental reactive elements, expressed in kilovars or kilovolt-
amperes.
[Link] component. The result of the harmonics and the distorted sinusoidal current and voltage
waveforms generated when any type of power semiconductor is used in the power circuit, the harmonic
component can be expressed in kilovars or kilovolt-amperes. The effect of these nonlinear loads on the
distribution system depends on (1) the magnitude of the harmonics generated by these loads, (2) the
percent of the total plant load that is generating harmonies, and (3)the ratio of the short-circuit current
available to the nominal fundamental load [Link] speaking, the higher the ratio of short-
circuit current to nominal fundamental load current, the higher the acceptable level of harmonic
distortion. Therefore, more precise definitions of power factors are required for systems with nonlinear
loads as follow: Displacement power factor: The ratio of the active power of the fundamental in
kilowatts to the apparent power of the fundamental in kilovolt-amperes.
Total power factor: The ratio of the active power of the fundamental in kilowatts to the total kilovolt-
amperes. Distortion factor, or harmonic factor. The ratio of the root-mean square (rms) value of all the
harmonics to the root-mean square value of the fundamental. This factor can be calculated for both the
voltage and current. Figure illustrates the condition in which the total power factor is lower than the
displacement power factor as a result of the harmonic currents.
Unfortunately, conventional var-hour meters do not register the total reactive energy consumed by
nonlinear loads. If the voltage is non sinusoidal, the var-hour meter measures only the displacement
volt-ampere-hours and ignores the distortion volt-ampere-hours. Therefore, for nonlinear loads, the
calculated power factor based on kilowatt-hour and var-hour meter readings will be higher than the
correct total power factor. The amount of the error in the power factor calculation depends on the
magnitude of the total harmonic distortion.
EFFECT OF HARMONICS ON P.F:-
But for many applications, the classic triangle is oversimplified. That’s because it does not take
into account the effects of harmonic voltages and currents found in today’s power distribution
systems. Harmonics add a third dimension to the classic power-factor triangle,thereby increasing
the apparent power required to do a particular amount of work. The presence of harmonics requires
that you change the way you think about–and the way you measure–power [Link] active
power is divided by apparent power in the presence of harmonics, the result is known as total
power factor (PF). The component of power factor not contributed by harmonics is known as
displacement power factor (DPF). Note that PF and DPF are equal in completely linear circuits–
such as a 208-V, 3-phase induction motor operating a blower–but are different in non- linear
circuits, for example a variable-frequency drive controlling cooling-tower fans.O&M personnel
should understand three practical effects of the PF/DPF definitions: (1) The difference between PF
and DPF readings is proportional to the degree of harmonics in the power distribution system; (2)
a power meter must provide both PF and DPF readings in order to effectively troubleshoot systems
with harmonics; and (3) manufacturers of nonlinear equipment often provide only a single power-
factor specification for their equipment, and it may be unclear whether the specification refers to
PF or [Link] PF and DPF differ by a factor of 10% or more, the difference is probably caused by
harmonics. The degree of difference may also suggest a course of action, depending on the types
of loads in the system.
Case 1: Predominantly linear systems. When PF and DPF are essentially the same value,motors
or other linear loads dominate the circuit. In this case, low power factor can be compensated for
with kVAr correction capacitance. Use caution in diagnosing problems involving both low power
factor and harmonics, because kVAr capacitors may be only part of the solution. Even in systems
with low levels of harmonics, kVAr capacitors applied improperly can cause resonant conditions
that can lead to overvoltages.
Case 2: Predominantly nonlinear systems. When PF is significantly lower than DPF correct low
power factor by applying line reactors directly to the sources of harmonic current or by using kVAr
capacitor networks with series inductors to limit harmonic current in the capacitors. Always
exercise caution in the use of kVAr correction capacitors and compensating filters to avoid
resonance problems at harmonic frequencies and consult the capacitor manufacturer or an expert
in filter design.
Case 3: Systems with kVAr capacitors already installed. When variable-frequency drives are
added to existing motors, and kVAr correction capacitors are already installed, DPF can actually
be overcorrected, causing current to lead voltage. Without system modifications,these new
components might cause instability and overvoltage problems. Under these conditions take
readings in the circuit to determine whether it is necessary to remove the kVAr correction
[Link] can measure both PF and DPF with a single meter. The best ones show three
views of the measured signal: a numeric reading of signal parameters, a visual display of the
waveform, and a view of the entire harmonic spectrum.
P.F MOTOR CONTROLLERS:-
Electric motor savings are achieved in several ways. The first is in the motor design itself, through
the use of better materials, design, and construction. Another is by optimizing the mechanical angle
between the various rotating magnetic fields inside the motor. This is done using the newer family
of motor control algorithms, generally referred to together as space vector control, flux vector
control, or field-oriented control. By keeping the magnetic fields of the rotor and stator oriented
with the optimal angles between them under various speed and torque conditions (typically near
90 degrees), the motor can always be operated at peak efficiency.
As a side benefit, other characteristics can also be optimized, such as fast and stable dynamic
response to load changes, precise control of speed or torque, soft starting and braking, prevention
of stalling at low speeds, high starting torques, and fault detection; often without sacrificing much
in the way of overall energy efficiency. Some of these features were once obtainable only from a
more expensive motor type, but can be achieved with the now ubiquitous, low-cost, and reliable
AC induction motor, which comprises 90 percent of [Link] sales. One of the most significant
advantages of the newer control algorithms is efficient variable speed operation.A very large
opportunity for system-level energy savings comes from using variable speed motor drives.
A well-designed pump or fan motor running at half the speed consumes only one-eighth the energy
compared to running at full speed. Many older pump and fan installations used fixed-speed motors
connected directly to the power mains, and controlled the liquid or air flow using throttling valves
or air dampers. The valves or dampers create a back pressure, reducing the flow, but at the expense
of efficiency. This is probably how the HVAC forced-air system works in your office building;
dampers control the airflow into each workspace while the central fan, which is sized for peak
requirements, runs at full speed all the time—even if the combined airflow requirements of the
building are currently very [Link] these motors with variable speed drives and eliminating
or controlling the dampers more intelligently can save up to two-thirds their overall energy
consumption.

LIGHTING INTRODUCTION:-
In today’s cost-competitive, market-driven economy, everyone is seeking technologies or methods
to reduce energy expenses and environmental impact. Because nearly all buildings have lights,
lighting retrofits are very common and generally offer an attractive return on investment.
“Lighting” is good lighting when it provides adequate illuminance to enable the task to be
performed efficiently, is perceived as comfortable, and people have a high level of satisfaction.
Good lighting design is not simply about achieving a required illuminance on the working plane;
it is about creating and controlling the lit environment. Standards often specify lighting in terms
of the illumination on the horizontal plane, which is the amount of light falling onto a horizontal
surface. This is because it is easy to measure and easy to calculate. It is not a good indicator of the
visual environment however, as people generally judge the adequacy of the lighting by the
luminance or relative brightness of the vertical [Link] luminance is the amount of light that
leaves a surface, either by transmission through the material or, more commonly, reflection from
the surface. In simple terms, the luminance is the product of the illuminance and the reflectance of
the surface divided by π. The eye sees luminance rather than illuminance. Therefore with the same
illumination, by changing the surface reflectance, the luminance of the surface changes
proportionally.
Illuminance: a measure of the light falling on a surface and Luminance is a measure of the light
leaving a surface
GOOD LIGHTING SYSTEM DESIGN:-
“Design” is the science and art of making things useful to human kind and lighting design is the
application of lighting—including daylight when it is specifically used as source of lighting to
human spaces. Like architecture, engineering and other design professions, lighting design relies
on a combination of specific scientific principles, established standards and conventions, and a
number of aesthetic, cultural and human factors applied in an artful manner.
The two objectives of the lighting designer are,
(1) To provide the right quantity of light,
(2) Provide the right quality of light

Lighting Quantity:-
Lighting quantity is the amount of light provided to a room. Unlike light quality, light quantity is
easy to measure and describe.
Units:-
Lighting quantity is primarily expressed in three types of units: watts, lumens and foot-candles
(fc).
The watt is the unit for measuring electrical power. It defines the rate of energy consumption by
an electrical device when it is in operation. The amount of watts consumed represents the electrical
input to the lighting system. The output of a lamp is measured in lumens. For example, one
standard four-foot fluorescent lamp would provide 2,900 lumens in a standard office system. The
amount of lumens can also be used to describe the output of an entire fixture (comprising several
lamps). Thus, the number of lumens describes how much light is being produced by the lighting
[Link] number of foot-candles shows how much light is actually reaching the workplane (or
task). Foot-candles are the end result of watts being converted to lumens, the lumens escaping the
fixture and traveling through the air to reach the work plane. In an office, the Work plane is the
desk level. You can measure the amount of foot-candles with a light meter
when it is placed on the work surface where tasks are performed. Foot-candle measurements are
important because they express the “result” and not the “effort” of a lighting system. The
Illuminating Engineering Society (IES) recommends light levels for specific tasks using
footcandles,not lumens or watts.
 Units of Measurement

Efficacy:-
Similar to efficiency, efficacy describes an output/ input ratio, the higher the output (while input
is kept constant), the greater the efficacy. Efficacy is the amount of lumens per watt from a
particular energy source. A common misconception in lighting terminology is that lamps with
greater wattage provide more light. However, light sources with high efficacy can provide more
light with the same amount of power (watts), when compared to light sources with low efficacy.
Figure shows lamp efficacies for various lamp types, based on initial lumen values.
IES Recommended Light Levels:-
The Illuminating Engineering Society (IES) is the largest organized group of lighting professionals
in the United States. Since 1915, IES has prescribed the appropriate light levels for many kinds of
visual tasks.
 Lamp Efficacies for Various Lamp Types. (Source: Effective Lighting Solutions, Inc.)

Lighting Quality:-
Lighting quality can have a dramatic influence on the attitude and performance of occupants. In
fact, different “moods” can be created by a lighting system. Consider the behavior of people when
they eat in different restaurants. If the restaurant is a fast-food restaurant, the space is usually
illuminated by bright white lights, with a significant amount of glare from shiny tables. Occupants
rarely spend much time there partly because the space creates an uncomfortable mood and the
atmosphere is “fast” (eat and leave). In contrast,consider an elegant restaurant with a candle-lit
tables and a “warm” atmosphere. Occupants tend to relax and take more time to eat. Although
occupant behavior is also linked to interior design and other factors, lighting quality represents a
significant influence. Occupants perceive and react to a space’s light color. It is important that the
lighting designer be able to recognize and create the subtle aspects of an environment that define
the theme of the [Link] example, drug and grocery stores use white lights to create a “cool” and
“clean”environment. Imagine if these spaces were illuminated by the same color lights as in an
elegant restaurant. How would the perception of the store change? Occupants can be influenced to
work more effectively if they are in an environment that romotes a “work-like”[Link]
goal of the lighting designer is to provide the appropriate quality of light for a particular task to
create the right “mood” for the space. Employee comfort and performance are worth more than
energy savings. Although the cost of energy for lighting ($.50-
$1.00/year/ft2) is substantial, it is relatively small compared to the cost of labor ($100-
$300/year/ft2). Improvements in lighting quality can yield high dividends for businesses because
gains in worker productivity are common when lighting quality is [Link], if a
lighting retrofit reduces lighting quality, occupant performance may decrease,quickly off-setting
any savings in energy costs. Good energy managers should remember that buildings were not
designed to save energy; they exist to create an environment where people can work efficiently.
Occupants should be able to see clearly without being distracted by glare, excessive shadows or
other uncomfortable [Link] quality can be divided into four main considerations are
Uniformity, Glare,Color Rendering Index and Coordinated Color Temperature.
Uniformity:-
The uniformity of illuminance describes how evenly light spreads over an [Link] uniform
illumination requires proper fixture spacing. Non-uniform illuminance creates bright and dark
spots, which can cause discomfort for some occupants. Lighting designers have traditionally
specified uniform illumination. This option is least risky because it minimizes the problems
associated with non-uniform illumination and provides excellent flexibility for changes in the work
environment. Unfortunately, uniform lighting applied over large areas can waste large amounts of
energy. For example, in a manufacturing building,20% of the floor space may require high levels
of illumination (100 fc) for a specific visual task. The remaining 80% of the building may only
require 40 foot candles. Uniform illumination over the entire space would require 100 fc at any
point in the building. Clearly,this is a tremendous waste of energy and money. Although uniform
illumination is not needed throughout the entire facility, uniform illumination should be applied
on specific tasks. For example, a person assembling small parts on a table should have uniform
illumination across the table top.
Glare:-
Glare is a sensation caused by relatively bright objects in an occupant’s field of [Link] key word
is relative, because glare is most probable when bright objects are located in front of dark
environments. For example, a car’s high beam headlights cause glare to oncoming drivers at night,
yet create little discomfort during the day. Contrast is the relationship between the brightness of
an object and its background. Although most visual tasks generally become easier with increased
contrast, too much brightness causes glare and makes the visual task more difficult. Glare in certain
work environments is a serious concern because it usually will cause discomfort and reduce worker
productivity.
Visual Comfort Probability (VCP):-
The Visual Comfort Probability is a rating given to a fixture which indicates the percent of people
who are comfortable with the glare. Thus, a fixture with a VCP = 80 means that 80% of occupants
are comfortable with the amount of glare from that fixture. A minimum VCP of 70 is recommended
for general interior spaces. Fixtures with VCPs exceeding 80 are recommended in computer areas
and high-profile executive office environments. To improve a lighting system that has excessive
glare, a lighting designer should be consulted. However there are some basic “rules of thumb”
which can assist the energy manager. A high-glare environment is characterized by either
excessive illuminationand reflection, or the existence of very bright areas typically around fixtures.
To minimize glare, the energy manager can try to obscure the bare lamp from the occupant’s field
of view,relocate fixtures or replace the fixtures with ones that have a high [Link] glare is
commonly achieved by using indirect lighting, using deep cell parabolic troffers, or special lenses.
Although these measures will reduce glare, fixture efficiency will be decreased because more light
will be “trapped” in the fixture. Alternatively,glare can be minimized by reducing ambient light
levels and using task lighting techniques.
Visual Display Terminals (VDTs):-
Today’s office environment contains a variety of special visual tasks, including the use of
computer monitors or visual display terminals (VDTs). Occupants using VDTs are extremely
vulnerable to glare and discomfort. When reflections of ceiling lights are visible on the VDT
screen, the occupant has difficulty reading the screen. This phenomenon is also called “discomfort
glare,” and is very common in rooms that are uniformly illuminated by fixtures with low a VCP.
Therefore, lighting for VDT environments must be carefully designed, so that occupants remain
comfortable. Because the location VDTs can be frequently changed, lighting upgrades should also
be designed to be adjustable. Moveable task lights and fixtures with high VCP are very popular
for these types of applications. Because each VDT environment is unique, each upgrade must be
evaluated on a case-by-case basis.
Color:-
Color considerations have an incredible influence on lighting quality. Light sources are specified
based on two color-related parameters: the Color Rendering Index (CRI) and the Coordinated
Color Temperature (CCT).
Color Rendering Index (CRI):-
In simple terms, the CRI provides an evaluation of how colors appear under a given light source.
The index range is from 0 to 100. The higher the number, the easier to distinguish colors.
Generally, sources with a CRI > 75 provide excellent color [Link] with a CRI < 55
provide poor color rendition. To provide a “base-case,” offices illuminated by most T12 Cool
White lamps have a CRI = 62. It is extremely important that a light source with a high CRI be used
with visual tasks that require the occupant to distinguish colors. For example, a room with a color
printing press requires illumination with excellent color rendition. In comparison, outdoor security
lighting for a building may not need to have a high CRI, but a large quantity of light is desired.
Coordinated Color Temperature (CCT):-
The Coordinated Color Temperature (CCT) describes the color of the light source. For example,
on a clear day, the sun appears yellow. On an over-cast day, the partially obscured sun appears to
be gray. These color differences are indicated by a temperature scale. The CCT (measured in
degrees Kelvin) is a close representation of the color that an object (black-body) would radiate at
a certain temperature. For example, imagine a wire being heated. First it turns red (CCT = 2000K).
As it gets hotter, it turns white (CCT = 5000K) and then blue (CCT= 8000K). Although a wire is
different from a light source, the principle is similar. CCT is not related to CRI, but it can influence
the atmosphere of a room. Laboratories, hospitals and grocery stores generally use “cool” (blue-
white) sources, while expensive restaurants may seek a “warm” (yellow-red) source to produce a
candle-lit appearance. Traditionally, office environments have been illuminated by Cool White
lamps, which have a CCT = [Link], a more recent trend has been to specify 3500K tri-
phosphor lamps, which are considered neutral. Table illustrates some common specifications for
different visual environments.
 Lamp Characteristics

Lighting Controls:-
A lighting control system is an intelligent network based lighting control solution that incorporates
communication between various system inputs and outputs related to lighting control with the use
of one or more central computing devices. Lighting control systems are widely used on both indoor
and outdoor lighting of commercial, industrial, and residential spaces. Lighting control systems
serve to provide the right amount of light where and when it is [Link] control systems
are employed to maximize the energy savings from the lighting system, satisfy building codes, or
comply with green building and energy conservation programs. Lighting control systems are often
referred to under the term Smart [Link] controls offer the ability for systems to be
turned ON and OFF either manually or automatically. There are several control technology
upgrades for lighting systems, ranging from simple (installing manual switches in proper locations)
to sophisticated (installing occupancy sensors).The term lighting controls is typically used to
indicate stand-alone control of the lighting within a space. This may include occupancy sensors,
time clocks, and photocells that are hard-wired to control fixed groups of lights independently.
Adjustment occurs manually at each devices [Link] term lighting control system refers to
an intelligent networked system of devices related to lighting control. These devices may include
relays, occupancy sensors, photocells,light control switches or touch screens, and signals from
other building systems (such as fire alarm of HVAC). Adjustment of the system occurs both at
device locations and through and at central computer locations via software programs or other
interface devices.
Switches:-
The standard manual, single-pole switch was the first energy conservation device. It is also the
simplest device and provides the least options. One negative aspect about manual switches is that
people often forget to turn them OFF. If switches are far from room exits or are difficult to find,
occupants are more likely to leave lights ON when exiting a [Link] do not want to walk
through darkness to find exits. However, if switches are located in the right locations, with multiple
points of control for a single circuit, occupants find it easier to turn systems OFF. Once occupants
get in the habit of turning lights OFF upon exit, more complex systems may not be necessary. The
point is: switches can be great energy conservation devices as long as they are convenient to use
them.
Time Clocks:-
Time clocks can be used to control lights when their operation is based on a fixed operating
schedule. Time clocks are available in electronic or mechanical styles. However,regular check-ups
are needed to ensure that the time clock is controlling the system [Link] a power loss,
electronic timers without battery backups can get off schedule—cycling ON and OFF at the wrong
times. It requires a great deal of maintenance time to reset isolated time clocks if many are
installed.
lighting energy audit:-
Assess opportunities for increasing lighting energy:-
a) Turn off lights in unoccupied areas.
1) Post reminder stickers to turn off lights when leaving the area.
2) Install time switches or occupancy sensors in areas of brief occupancy and remote areas
(warehouses, storage areas, etc.).
3) Rewire switches so that one switch does not control all fixtures for multiple work areas.
4) Ensure wall-switch timers function properly.
b) Determine if existing lighting levels are higher than recommended levels.
Use a light meter to measure light levels and consult the Illuminating Engineering Society of North
America (IESNA) illumination standards.
1) Reduce lighting levels where appropriate.
2) Reduce lighting hours.
3) Employ uniform or task delamping to reduce power and lighting.
c) Review outside lighting needs.
1) Eliminate outdoor lighting where possible and where safety and security are not compromised.
2) Replace exterior incandescent lights with more efficiency lights such as high pressure sodium
(HPS) or metal halide (MH).
3) Replace burned out lamps with lower wattage lamps.
d) Remove unneeded lamps (delamp).
e) Install more efficient lighting.
f) Employ more effective lighting settings.
g) Follow a regular a maintenance schedule.
h) Upgrade exit signs with the help of an expert.
i) Use day lighting effectively.
j) Remove unnecessary lighting in beverage machines.
k) Train staff, especially housekeeping staff, on lighting policies/efficiency.
Top reasons to audit your lighting system:-
1) To save energy and money with existing equipment by using new light control strategies.
2) To improve your facility's image — go green.
3) To enhance your facility's atmosphere for occupants with added comfort, safety, and
productivity.
4) Because lighting uses 39% of electricity in office buildings (EIA Commercial Buildings Energy
Consumption Survey, 2003 data, released in 2008).
5) Because you know that older equipment needs to be replaced with more energy efficient
Products.
6) Because, sometimes, simple operational changes can impact energy savings dramatically.
7) To re-optimize system operation after facility changes.

MODULE-5

ECONOMIC ANALYSIS
Economic analysis is the study of economic systems. It may also be a study of a production process
or an industry. The analysis aims to determine how effectively the economy or something within
it is operating. They measure, in monetary terms, what the benefits of a project are to the economy
or community.

Depreciation Methods

Depreciation is the accounting process of converting the original costs of fixed assets such as plant
and machinery, equipment etc into expense. It refers to the decline in the value of fixed assets due
to their usage, passage of time or [Link], depreciation is a non – cash expense
as it does not involve any outflow of cash. Hence, depreciation as an expense is different from all
the other conventional [Link], there are different factors considered by a company in
order to calculate depreciation. One such factor is the depreciation method. Thus, companies use
different depreciation methods in order to calculate depreciation. So, let’s consider a depreciation
example before discussing the different types of depreciation methods.

Depreciation Calculation Example

Kapoor Pvt Ltd. purchased a machinery worth Rs. 1,00,000 on March 31st, [Link], in
2018 a new variant of the same machinery comes into the market due to innovation in technology.
As a consequence, the machinery purchased by Kapoor Pvt. Ltd. becomes outdated. This
technological innovation causes the value of the old machinery to decline. Say, the profit before
depreciation and tax for Kapoor Pvt. Ltd for the year ended December 2018 is Rs.50,000. And
depreciation for the same accounting period is Rs. 10,000. Hence, depreciation for plant and
machinery is shown as under:

Profit before depreciation and tax Rs. 50,000

(-) Depreciation Rs. 10,000

Profit before Tax Rs. 40,000

Factors for Estimating Depreciation

Now, there are a host of factors that need to be considered in order to calculate the amount of
depreciation to be charged in each accounting period. These include:
Cost of the Asset

The cost of the asset is also known as the historical cost. It comprises of the purchase price of the
fixed asset and the other costs incurred to put the asset into working condition. These costs include
freight and transportation, installation cost,commission, insurance etc.

Salvage Value

Salvage value is also known as the net residual value or scrap value. It is the estimated net
realizable value of an asset at the end of its useful life. This value is determined as result of the
difference between sale price and the expenses necessary to dispose off an asset.

Estimated Useful Life

The commercial or economic life of an asset is termed as the useful life of an [Link], for
estimating useful life of an asset, its physical life is not taken into consideration. This is because
an asset might be in a good physical condition after few years but it may not be used for production
purposes.

Method of Depreciation

You need to determine a suitable way to allocate cost of the asset over the periods during which
the asset is used. Generally, the method of depreciation to be used depends upon the patterns of
expected benefits obtainable from a given asset. This means, different methods would apply to
different types of assets in a [Link], in reality, companies do not think about the
service benefit patterns when selecting a depreciation method. In general, only a single method is
applied for all of the company’s depreciable assets.

Various Depreciation Methods

Various methods are used by the companies to calculate depreciation. These are as

follows:

Various Depreciation Methods

• Straight Line Depreciation Method

 • Diminishing Balance Method
• Sum of Years’ Digits Method
• Double Declining Balance Method
• Sinking Fund Method
• Annuity Method
• Insurance Policy Method
• Discounted Cash Flow Method
• Use Based Method
• Output Method
• Working Hours Method
• Mileage Method

Other Methods

• Depletion Method
• Revaluation Method
• Group or Composite Method

1. Straight Line Depreciation Method

This is the most commonly used method to calculate depreciation. It is also known as fixed
installment method. Under this method, an equal amount is charged for depreciation of every fixed
asset in each of the accounting periods. This uniform amount is charged until the asset gets reduced
to nil or its salvage value at the end of its estimated useful [Link], this method derives its name
from a straight line graph. This graph is deduced after plotting an equal amount of depreciation for
each accounting period over the useful life of the [Link], the amount of depreciation is
calculated by simply dividing the difference of original cost or book value of the fixed asset and
the salvage value by useful life of the asset.

Straight Line Depreciation Formula

The formula for annual depreciation under straight line method is as follows:

Annual Depreciation Expense = (Cost of an asset – Salvage Value)/Useful life of an asset

Where,

• Cost of the asset is purchase price or historical cost

• Salvage value is value of the asset remaining after its useful life
• Useful life of the asset is the number of years for which an asset is expected to be used by
the business

2. Diminishing Balance Method This method is also known as reducing balance method, ritten
down value method or declining balance method. A fixed percentage of depreciation is charged in
each accounting period to the net balance of the fixed asset under this method. This net balance is
nothing but the value of asset that remains after deducting accumulated depreciation. Thus, it
means that depreciation rate is charged on the reducing balance of the asset. This asset is the one
reflected in the books of accounts at the beginning of an accounting [Link], the book value of
the asset is written down so as to to reduce it to its residual value. Now, as the book value of the
asset reduces every year so does the amount of depreciation. Accordingly, higher amount of
depreciation is charged during the early years of the asset as compared to the later stages. Thus,
the method is based on the assumption that more amount of depreciation should be charged in
early years of the asset. This is on account of low repair cost being incurred in such years. As an
asset forays into later stages of its useful life, the cost of repairs and maintenance of such an asset
increase. Hence, less amount of depreciation needs to be provided during such years. Diminishing
Balance Method Formula Depreciation Expense = (Book value of asset at beginning of the year
x Rate of Depreciation)/100
Sinking Fund Method The sinking fund method is a technique for depreciating an asset while
generating enough money to replace it at the end of its useful life. As depreciation charges are
incurred to reflect the asset's falling value, a matching amount of cash is invested. These funds sit
in a sinking fund account and generate interest. Understanding the Sinking Fund Method
Companies use depreciation to expense an asset over time, not just in the period that it was
purchased. In other words, depreciation involves stretching out the cost of assets over many
different accounting periods, enabling companies to benefit from them without deducting the full
cost from net income (NI). One of the biggest challenges of depreciation is determining how much
to expense.

For companies that want to put money aside to purchase a replacement asset upon the full
depreciation of the old one, the sinking fund method may be a viable option. Under this method,
the amount of money added to the asset-replacement fund each year is calculated by determining
the cost to replace the asset, how many years the asset is expected to last, and the expected rate of
return on the investment, as well as potential earnings from the effects of compounding interest.
In most cases, sinking funds invest in government-backed securities, such as Treasury notes, bills,
and bonds. Investments matching the duration of the asset's life are usually used, but shorter-term
investments can be reinvested. The asset's depreciation schedule determines the investment
amounts.

Time Value of Money (TVM): The time value of money (TVM) is the concept that money
available at the present time is worth more than the identical sum in the future due to its potential
earning capacity. This core principle of finance holds that provided money can earn interest, any
amount of money is worth more the sooner it is received. TVM is also sometimes referred to as
present discounted value.

Time Value of Money (TVM)

What Is the Time Value of Money (TVM)?

The time value of money (TVM) is the concept that money available at the present time is worth
more than the identical sum in the future due to its potential earning capacity. This core principle
of finance holds that provided money can earn interest, any amount of money is worth more the
sooner it is received. TVM is also sometimes referred to as present discounted value.

Understanding Time Value of Money (TVM) :

The time value of money draws from the idea that rational investors prefer to receive money today
rather than the same amount of money in the future because of money's potential to grow in value
over a given period of time. For example, money deposited into a savings account earns a certain
interest rate and is therefore said to be compounding in value. Further illustrating the rational
investor's preference; assume you have the option to choose between receiving $10,000 now versus
$10,000 in two years. It's reasonable to assume most people would choose the first option. Despite
the equal value at the time of disbursement, receiving the $10,000 today has more value and utility
to the beneficiary than receiving it in the future due to the opportunity costs associated with the
wait. Such opportunity costs could include the potential gain on interest were that money received
today and held in a savings account for two years.

Time Value of Money Formula

Depending on the exact situation in question, the time value of money formula may change
slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has
additional or less factors. But in general, the most fundamental TVM formula takes into account
the following variables:

• FV = Future value of money

• PV = Present value of money
 • i = interest rate
• n = number of compounding periods per year
• t = number of years

Based on these variables, the formula for TVM is:

FV = PV x [1 + (i / n)] (n x t)

Time Value of Money Examples

Assume a sum of $10,000 is invested for one year at 10% interest. The future value of that money
is:

FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000

The formula can also be rearranged to find the value of the future sum in present day dollars. For
example, the value of $5,000 one year from today, compounded at 7% interest, is:

PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673

Effect of Compounding Periods on Future Value

The number of compounding periods can have a drastic effect on the TVM calculations. Taking
the $10,000 example above, if the number of compounding periods is increased to quarterly,
monthly or daily, the ending future value calculations are:

• Quarterly Compounding: FV = $10,000 x (1 + (10% / 4) ^ (4 x 1) = $11,038

• Monthly Compounding: FV = $10,000 x (1 + (10% / 12) ^ (12 x 1) = $11,047
• Daily Compounding: FV = $10,000 x (1 + (10% / 365) ^ (365 x 1) = $11,052

This shows TVM depends not only on interest rate and time horizon, but also on how many times
the compounding calculations are computed each year. (For related reading, see "Why the Time
Value of Money (TVM) Matters to Investors") .
Rate of Return – RoR

A rate of return (RoR) is the net gain or loss on an investment over a specified time period,
expressed as a percentage of the investment’s initial cost. Gains on investments are defined as
income received plus any capital gains realized on the sale of the investment.

Formula for RoR

Rate of return= [(Current value−Initial value) / Initial value ] ×100

This simple rate of return is sometimes called the basic growth rate, or alternatively, return on
investment, or ROI. If you also consider the effect of the time value of money and inflation, the
real rate of return can also be defined as the net amount of discounted cash flows received on an
investment after adjusting for inflation.

Example of How to Use the RoR

The rate of return can be calculated for any investment, dealing with any kind of asset. Let's take
the example of purchasing a home as a basic example for understanding how to calculate the RoR.
Say that you buy a house for $250,000 (for simplicity let's assume you pay 100% cash). Six years
later, you decide to sell the house—maybe your family is growing and you need to move into a
larger place. You are able to sell the house for $335,000, after deducting any realtor's fees and
taxes. The simple rate of return on the purchase and sale of the house is as follows:

(335,000−250,000) / 250,000×100=34%

Now, what if, instead, you sold the house for less than you paid for it—say, for $187,500? The
same equation can be used to calculate your loss, or the negative rate of return, on the transaction:

(187,500−250,000) / 250,000 ×100=−25%

PRESENT WORTH METHOD

1) In this method of comparison, the cash flows of each alternative will be reduced to time zero by
assuming an interest rate i.
2) Then, depending on the type of decision, the best alternative will be selected by comparing the
present worth amounts of the alternatives.

3) In a cost dominated cash flow diagram, the costs (outflows) will be assigned with positive sign
and the profit, revenue, salvage value (all inflows), etc. will be assigned with negative sign.

4) In a revenue/profit-dominated cash flow diagram, the profit, revenue, salvage value (all inflows
to an organization) will be assigned with positive sign. The costs (outflows) will be assigned with
negative sign.

a. Revenue-Dominated Cash Flow Diagram

A generalized revenue-dominated cash flow diagram to demonstrate the present worth method of
comparison is presented in Fig.

To find the present worth of the above cash flow diagram for a given interest rate, the formula is

PW(i) = – P + R1[1/(1 + i)1] + R2[1/(1 + i)2] + ... + Rj [1/(1 + i) j] + Rn[1/(1 + i)n] + S[1/(1 +
i)n]

b. Cost- Dominated Cash Flow Diagram

A generalized cost-dominated cash flow diagram to demonstrate the present worth method of
comparison is presented in Fig.
To compute the present worth amount of the above cash flow diagram for a given interest rate i,
we have the formula

PW(i) = P + C1[1/(1 + i)1] + C2[1/(1 + i)2] + ... + Cj[1/(1 + i) j] + Cn[1/(1 + i)n] – S[1/(1 + i)n]

EXAMPLE

Alpha Industry is planning to expand its production operation. It has identified three different
technologies for meeting the goal. The initial outlay and annual revenues with respect to each of
the technologies are summarized in Table 1. Suggest the best technology which is to be
implemented based on the present worth method of comparison assuming 20% interest rate,
compounded annually.

Solution :

In all the technologies, the initial outlay is assigned a negative sign and the annual revenues are
assigned a positive sign.
TECHNOLOGY 1

Initial outlay, P = Rs. 12,00,000

Annual revenue, A = Rs. 4,00,000

Interest rate, i = 20%, compounded annually

Life of this technology, n = 10 years

The cash flow diagram of this technology is as shown in Fig.

Fig. Cash flow diagram for technology 1.

The present worth expression for this technology is

PW (20%)1 = –12,00,000 + 4,00,000 (P/A, 20%, 10)

= –12,00,000 + 4,00,000 (4.1925)

= –12,00,000 + 16,77,000

= Rs. 4,77,000

TECHNOLOGY 2 Initial outlay, P = Rs. 20,00,000

Annual revenue, A = Rs. 6,00,000

Interest rate, i = 20%, compounded annually

Life of this technology, n = 10 years

The cash flow diagram of this technology is shown in Fig.

 Fig. Cash flow diagram for technology 2.

The present worth expression for this technology is PW(20%)2 = – 20,00,000 + 6,00,000 (P/A,
20%, 10)

= – 20,00,000 + 6,00,000 (4.1925)

= – 20,00,000 + 25,15,500

= Rs. 5,15,500

TECHNOLOGY 3

Initial outlay, P = Rs. 18,00,000

Annual revenue, A = Rs. 5,00,000

Interest rate, i = 20%, compounded annually

Life of this technology, n = 10 years

The cash flow diagram of this technology is shown in Fig.

Fig. Cash flow diagram for technology 3.

The present worth expression for this technology is

PW(20%)3 = –18,00,000 + 5,00,000 (P/A, 20%, 10)

= –18,00,000 + 5,00,000 (4.1925)

= –18,00,000 + 20,96,250

= Rs. 2,96,250

From the above calculations, it is clear that the present worth of technology 2 is the highest among
all the technologies. Therefore, technology 2 is suggested for implementation to expand the
production.

REPLACEMENT ANALYSIS:
Replacement analysis is one of the crucial analysis in capital budgeting. An asset life may be
reduced due to physical impairment, changes in economic requirements and rapid changes in
technology that may obsolete assets prior to expectation. The replacement of assets offers
economic opportunity for the firm. In replacement analysis there is two alternatives:

• The assets that are currently using : The defender

• The assets that we have to buy to replace current assets : The challenger

Factors to be Considered

• Sunk costs to be ignored Existing asset value need not be considered

• Income tax to be avoided
• The optimal replacement cycle is one which has lowest equivalent annual cost
• The replacement decision will apply indefinitely.
• Economic life of the challenger and the defender should not consider

Worked Example

A machine costs CU 20,000 and it can be replaced every year or every two years. Delaying the
replacement causes the running costs to increase and the scrap proceeds to decrease as follows:
 Year Running Costs Sales Proceeds
1 5000 16000
2 5500 13000

Company’s cost of capital is 10%

Requirement: Should the machine be replaced every one or two years?

Solution:

Replacement after two years:

Time Narrative Cash Flows DCF@10% Present Value

0 Purchase 20000 1.00 20000

1 Running Costs 5000 .909 4545
2 Running Costs 5500 .826 4543
2 Scarp Proceeds 13000 .826 10738
Net Present 18350
Value

Annual Equivalent Cost (EAC) = 18,350/1.736 (.909+.826) = CU 10,570

Replace after one years:

Time Narrative Cash Flows DCF@10% Present Value

0 Purchase 20000 1.000 20000

1 Running Costs 5000 .909 4545
1 Scarp Proceeds 16000 .909 14544
Net Present 10001
Value

Annual Equivalent Cost (EAC) = 10,001/.909 = 11,002

Summary of above two options are as follows:

EAC (Annual Equivalent Costs after one $ 11,002

Year)
EAC (Annual Equivalent Cost after two $ 10,570 Lowest One
Year)
Hence, the Machine to be replaced after two years because it has lowest EAC.
Limitations of Replacement Analysis :

This method assumes that a firm is continually replacing, and therefore determines a once- and-
for-all optimal replacement cycle. In practice this is unlikely to be valid due to:

• Changing technology, which can quickly make machines obsolete and shorten replacement
cycles. This means that one asset is not being replaced by one exactly similar.
• Inflation, which by altering the cost structure of assets means that the optimal replacement
cycle can vary over time.
• If inflation affects all variables equally it is best excluded from the analysis by discounting
real cash flows at a real interest rate – the optimal replacement cycle will remain valid.
• Differential inflation rates mean that the optimal replacement cycle varies over time.
• The effects of taxation (ignored in the analysis but they could be incorporated) The fact
that production is unlikely to continue in perpetuity.

Conclusions:

A business needs to know how often to replace such assets. Replacing after a long time means not
replacing as often, so delaying the cost of a new replacement machine. However this invariably
means keeping an asset whose value is declining and which costs more to maintain. These costs
and benefits need to be balanced.

LIFE CYCLE COSTING ANALYSIS:

What is Life Cycle Costing Analysis?

Life cycle cost analysis (LCCA) is an approach used to assess the total cost of owning a facility or
running a project. LCCA considers all the costs associated with obtaining, owning, and disposing
of an investment.
Life cycle cost analysis is especially useful where a project come with multiple alternatives and
all of them meet performance necessities, but they differ with regards to the initial, as well as the
operating cost. In this case, the alternatives are compared to find one that can maximize savings.
For example, LCCA helps to determine which of the two alternatives will raise the initial cost but
will reduce the operating cost. However, LCCA should not be used for the purpose of budget
allocation.

Understanding Life Cycle Cost Analysis

Life cycle cost analysis is ideal for estimating the overall cost of a project’s alternatives. It is also
used to choose the right design to ensure that the chosen alternative will offer a lower overall
ownership cost that is consistent with function and quality. LCCA needs to be performed during
the initial stages of the design process, as there is room to make changes and refinement that will
ensure that the life cycle cost reduces. The first step when performing an LCCA is determining the
economic impact of the alternatives available. The effects are then quantified and expressed in
monetary terms.

Costs:

Various costs arise when procuring, operating, or disposing of a project. Project-related costs can
be classified into initial costs, fuel costs, replacement costs, operation and maintenance costs,
finance charges, and residence [Link] relevant and significant costs in each of the categories
above can be used to make investment-related decisions. Costs make sense when they are different
for each alternative. They are considered significant when they are substantial enough to cause a
dependable impact on a project’s LCC. All the costs involved are treated as base year values
equivalent to present day dollar amounts; LCCA transforms all dollar values into future year
occurrence equivalents and then discounts all the values to their base dates. In such a way, it’s easy
to find their present value.

ENERGY EFFICIENT MOTORS:

India’s power sector is facing an acute problem of meeting the growing demand of electricity.
Improving energy efficiency by employing energy efficient devices would be the better alternative
for meeting part of the new demand. Three phase Induction motors form significant load in
industrial and agricultural sectors. Instead of generally used standard motors, if energy, efficient
motors are used, it will result into substantial saving in electrical Energy. Energy efficient motor
(EEM) gives, more, efficiency, over a standard motor (STM), this can be achieved, by, making
some changes in. the. Design aspects, material used etc. Principle of operation of EEM is, same as
a three phase standard induction, motor, Comparison of efficiencies of EEM and STM, design
criteria, efficiency standards, advantages and limitations of EEM are described in below.
OVERSIZING OF STANDARD MOTORS:

An overrated motor for smaller load efficient. While employing an electric con a particular
application, safety margins are provided at every step by a designer, an engineer, a manufacturer
and user which adversely affect efficiency and power factor (p. f.). For the same load the oversized
motor will take more current as compared to proper sized motor. Oversized motor is not loaded
fully. Most of the standard motors in industry run at a load which is less than full load Exact rating
of EEM may be selected due to very high reliability and also service factor which EEM is offering
is 1.15, Service’ factor specifies’ the capacity of motor to withstand prolonged overload
conditions,

REWINDING OF A STANDARD MOTOR:

When the motor winding burns due to overheating, old winding is stripped out and replaced with
a new one. This rewinding is very common which often leads to poor performance and
deterioration of efficiency in case of a standard motor, for this there are number of reasons which
are as follows: Even slight damage of core or insulation between the stampings may result into
increased losses. Overheat in rotor, rewinding change Premeditative which may result in increase
in iron losses. During rewinding if smaller diameter wire is used, that results into increase in copper
losses. In addition if better insulation is not provided, or if proper procedures are not followed,
degradation takes place which is often overlooked So as to minimize the cost. But that results into
high running charges. User should carry out the economics of EEM vs. rewinding as most of the
times energy saving from installing a new EEM instead rewinding the existing STM may be large.

EFFICIENCY OF EEM :

Whatever input power supplied to the motor is not converted to output due to the losses taking
place in the motor as,

Stator copper loss 40%

Rotor copper loss 20%

Iron loss 25%

Friction and Windage loss 10%

Stray loss 5%

Every effort is made to reduce these losses and increase the efficiency in case of an EEM.
Comparison of EEM and STM as per NEMA (National Electrical Manufacturer’s Association).

DESIGN OF EEM TO REDUCE THE LOSSES:

Design Criteria for EEM involves addition of more active Magnetic and conducting material,
optimum design of slots, air Baps and wince so achieve the ‘Maximum efficiency.

Economics of energy efficient motors and systems:

Efficient energy motors are slightly costlier than standard motors. Motor‐energy costs typically
account for over 95% of the motor's life-‐cycle cost, with over 1000 hours of operation per year;
efficient electric motors are more cost effective over the system life. Electric motor systems
account for about 60 to 70 percent of industrial electricity consumption depending on the industrial
structure. There has been extensive usage of electric motors not only in the industry sectors but
also in the commercial, residential, agricultural and transportation sectors. Pumping, compressed
air and fan systems are the significant energy users where consumption of electricity is dominant.

Besides, material handling and processing also consume a lot of electricity, although they are
heterogeneous and differ from each other. Among the various sectors that contribute to mitigate
greenhouse gas (GHG) emissions, the role played by the industrial sector is also significant. Thus,
reducing GHG emissions from the industrial sector would reduce the overall GHG emissions.
Energy savings and emissions reductions can be achieved by 10‐30% by reducing total energy use
or by increasing the production rate per unit of energy used. By contrast, to reduce GHG emissions,
enhancing energy efficiency is a key role. Therefore, energy research organizations and
governments should emphasize the importance of energy efficiency of motor in the industrial
sector as a high priority. There are number of benefits which Energy-efficient motors possess.
Energy efficient motors have features with improved manufacturing techniques and superior
materials, it usually have longer bearing lives, higher service factors as well as lower waste heat
output, less vibration, all of which increase reliability.

Feasibility of technology and operational necessities:

Investments in improving energy efficiency of electric motor systems are often delayed or rejected
due to barriers and market failures. Lacks of attention of the plant manager, higher initial cost for
efficient motors, etc. are the major hindrances. Particularly in developing countries where access
to capital is difficult to manage, very often energy efficient motors get less attention due to higher
initial costs. In most cases, broken motors are rewound and reused, which do not help much to
increase motor efficiency. Policymakers have identified the opportunity of high energy efficient
motor potentials. In line with this, some policies have already been introduced like minimum
standards and motor labeling schemes in many countries. Besides, energy audit schemes as well
as capacity development programs have also been focused in order to improve system efficiencies.
However, progress has achieved to improve the efficiency of the motor system like use of variable
speed drivers, rewinding the motor, power factor correction, etc. Market has successfully
transformed towards the higher efficiency motor market, while more new emerging technology
with even higher efficiency are just about to enter the market.

Description of the technology:

Efficient electric motors achieve greater efficiency by reducing the losses which account for only
3-‐6% of the energy that flows through the motor. As shown in Table 1, there are five categories
of losses that occur in a motor, including stator power losses, rotor power losses, magnetic core
losses, friction and windage losses, and stray load losses. Among them, stator power losses
consume the highest percentage (37% of total energy loss) share of energy loss that a motor
accounts. Besides, stray load losses which are 16% of total energy loss can be reduced by
redesigning stator winding, but each design change may increase losses in other areas. Moreover,
rotor power losses, magnetic core losses and friction and windage losses can be minimized by
using higher quality materials and optimizing the design for larger magnetic fields and greater
electricity flow.

Rewinding:

The most common practice in industry is to rewind burnt-‐out motors which exceed 50% of the
total number of motors in some industries. It is a technique which can maintain motor efficiency
at previous levels. But careful measures should be taken care off to rewind the motors, because in
most cases it also results in efficiency losses. The effect of rewinding can reduce the motor
efficiency such as winding material, winding and slot design insulation performance, and operating
temperature. For example, when the windings get heated, this can damage the insulation between
lamination, which further raises the eddy current losses. However, proper measures such as using
wires of greater cross section and slot size permitting etc. would result in a reduction of stator
losses and thereby increasing efficiency. However, original design and structure of the motor
should remain the same during the rewind, unless there are specific load-- ‐related reasons for
redesign.

Power factor correction by installing capacitors:

Capacitors are often used to improve the power factor which is connected in parallel (shunted)
with the motor. The capacitor itself will not be responsible to improve the power factor of the
motor, but of the starter terminals where power is generated or distributed. The benefits of power
factor correction include reduced I2R losses in cables upstream of the capacitor (and hence reduced
energy charges), reduced kVA demand (and hence reduced utility demand charges), reduced
voltage drop in the cables (leading to improved voltage regulation), and an increase in the overall
efficiency of the plant electrical system.

Variable speed drives:

Electric motors have traditional control methods using mainly two states: stop and operate at
maximum speed. Motors are sized to provide the maximum power output required in most motor
installations. In order to provide the maximum designed load, the rotational speed is kept constant
at its optimum value and to match with the load the power input to the motor also remains constant
at the maximum value. However, in order to have significant energy savings, rotational speed of
the motor should be decreased when load decreases. Nevertheless, the majority of motors are
operated only at 100% speed for short periods of time which often results systems operating
inefficiently and significant energy losses during the operation time. To match the speed of the
motor with the related load, VSD technique is a very popular choice. The speed of a motor or
generator can be controlled and adjusted to any desired speed by using VSD. In addition, VSD can
also keep an electric motor speed at a constant level where the load is variable. Illustrates the
different components of conventional pumping system and energy efficient pumping systems.

Successful implementation:

This section illustrates how energy efficient motors have been successful in making contributions
to significant energy savings with short payback period. Some of the case studies in different
countries where efficient motor technology has been effectively implemented in companies and
this give an idea of the energy savings that can be realized.

Computation of Economic aspects:

Calculation of simple payback method:

Simple Payback Period:

This is the simplest technique that can be used to appraise a proposal. The simple payback period
can be defined as 'the length of time required for the running total of net savings before
depreciation to equal the capital cost of the project'. In theory, once the payback period has ended,
all the project capital costs will have been recouped and any additional cost savings achieved can
be seen as clear 'profit'. Obviously, the shorter the payback period, the more attractive the project
becomes. The length of the maximum permissible payback period generally varies with the
business culture concerned. In some companies, payback periods in excess of 3 years are
considered acceptable.

The payback period can be calculated using the equation:

The annual net cost saving (AS) is the least savings achieved after all the operational costs have
been met.

Example:
A new small cogeneration plant installation is expected to reduce a company's annual energy bill
by Rs.4,86,000. If the capital cost of the new boiler installation is Rs.22,20,000 and the annual
maintenance and operating costs are Rs. 42,000, the expected payback period for the project can
be worked out as.
Solution
PB = 22,20,000 / (4,86,000 – 42,000) = 5.0 years
The payback method is a simple technique, which can easily be used to provide a quick evaluation
of a proposal. However, it has a number of major weaknesses:
• The payback method does not consider savings that are accrued after the payback period has
finished.

• The payback method does not consider the fact that money, which is invested, should accrue
interest as time passes. In simple terms there is a 'time value' component to cash flows. Thus
Rs.1000 today is more valuable than Rs.1000 in 10 years' time.

In order to overcome these weaknesses a number of discounted cash flow techniques have been
developed, which are based on the fact that money invested in a bank will accrue annual interest.
The two most commonly used techniques are the 'net present value' and the 'internal rate of return'
methods.

The simple payback period is usually calculated as follows:

 First Cost
Simple payback period =
Yearly benefits−Yearly costs

Examples
Simple payback period for a continuous Deodorizer that costs Rs.60 lakhs to purchase and install,
Rs.1.5 lakhs per year on an average to operate and maintain and is expected to save Rs. 20 lakhs
by reducing steam consumption (as compared to batch deodorizers), may be calculated as follows:
According to the payback criterion, the shorter the payback period, the more desirable the project.

Net present worth method-Power factor correction:

The net present value method considers the fact that a cash saving (often referred to as a 'cash
flow') of Rs.1000 in year 10 of a project will be worth less than a cash flow of Rs.1000 in year 2.
The net present value method achieves this by quantifying the impact of time on any particular
future cash flow. This is done by equating each future cash flow to its current value today, in other
words determining the present value of any future cash flow. The present value (PV) is determined
by using an assumed interest rate, usually referred to as a discount rate. Discounting is the opposite
process to compounding. Compounding determines the future value of present cash flows, where"
discounting determines the present value of future cash [Link] instead of installing a new
cogeneration system, the company invested Rs.22,20,000 in a bank at an annual interest rate of
8%, then:
The value of the sum at the end of year 1 = 22,20,000 + (0.08 x 22,20,000) = Rs.23,97,600
The value of the sum at the end of year 2 = 23,97,600 + (0.08 x 23,97,600) = Rs.25,89,408
The value of the investment would grow as compound interest is added, until after n years the
value of the sum would be: