Energy Auditing is a Systematic procedure consisting of inspection, survey and analysis of Energy flows. Use of Energy today has become a key factor in deciding the product cost at micro level as well as in dictating the inflation and the debt burden at the macro level. Energy cost is a significant factor in economic activity. The imperatives of an energy shortage situation call for energy conservation measure, which essentially mean using less energy for the same level of activity.

Energy Audit tries to answer “how”, “where”, and “how much” energy used is the system and offers a peep into energy use patterns and suggests ways and means for eliminating wastes and improving efficiency.

As per the Energy Conservation Act 2001, Energy Audit is defined as “the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit

Energy Audit helps in energy cost optimization, pollution control, safety aspects and suggests the methods to improve the operating & maintenance practices of the system. It is instrumental in coping with the situation of variation in energy cost availability, reliability of energy supply, decision on appropriate energy mix, decision on using improved energy conservation equipment’s, Instrumentation and technology.

Energy Audit attempts to balance the total energy inputs with its use and serves to identify all the energy streams in the systems and quantifies energy usages according to its discrete function.

Energy Audit is an effective energy management tool. By identifying and implementing the means to achieve energy efficiency and conservation, not only can energy savings be achieved, but also equipment/system services life can be extended. All these mean savings in money.

Energy audit is a top-down initiative. Its effectiveness relies largely on the resources that should be allocated to energy auditing commitment on energy conservation and environmental protection and anticipation on the energy savings achievable for the improvement to corporate image by promoting energy efficiency and conservation.


In spite of many efforts and benefits for Investment Grade Energy auditing to achieved energy conservation, the various barriers such as technical, financial, market and policy have constrained the implementation of energy efficiency projects in India. Some of these barriers are discussed below.

Lack of awareness:
The main barrier to energy conservation is the lack of awareness among the industry managers of the potential gains from improved efficiency. Industries as well as government are yet to take into consideration factors such as tax credits, depreciation benefits, and electricity price escalation, life cycle savings of the investment and the timely release of money.

Shortage of widespread education and training:
The widespread educational opportunities in energy management and conservation are not available. In addition, the appropriate training facilities, trainers and auditors are lacking.

Economic and market distortions:
The response to conservation measures is irrational because of inappropriate pricing, other market distortions and socio-economic factors.

Lack of standardization of equipment’s:
The slow rate of progress in achieving higher standards of energy consumption in equipment’s and appliances is also adversely affecting the adoption of energy saving measures.

Lack of financing:
The non-availability of sufficient credit facilities and the difficulties in obtaining required finances for energy saving projects are strong deterrents to investments in energy efficiency in India.

Lack of effective co-ordination:
In India, the lack of effective national-level coordination and promotion of energy conservation activities have BEE major constraint to achieving energy efficiency and environmental benefits.

Policy framework:
With the background of high energy saving potential and its benefits, the Government of India has enacted Energy Conservation Act- 2001 to bridge the gap between demand and supply, reduce environmental emissions throughout in energy saving, and to effectively overcome the barriers’ Act provides, for the first time, the much-needed legal framework and institutional arrangement for embarking or energy efficiency drive.


Identifying the quality and cost of various energy inputs.
Assessing present pattern of energy consumption in different cost centers of operations.
Relating energy inputs and production output.
Identifying potential areas of thermal and electrical energy economy.
Highlighting wastage’s in major areas.
Fixing of energy saving potential targets for individual cost centers.
Implementation of measures for energy conservation & realization of savings.


Collections of data on operational parameters, energy consumption both normal and electrical through a questionnaire.
Study the existing plant capacities and their performance to assess plant operations.
Study of the specific energy consumption
Study of the power sources, distribution system and drive controls, load factor and efficiency of large motors, process automations, plant illuminations etc.
Collection of requisite data and analysis and identification of specific areas with potential for conservation of thermal and electrical energy.
Discussion with specific recommendations along with broad system concept for conservation of energy.
Preparation of capital cost estimates and establishing techno-economic feasibility for recommended measures.
No investment and/or marginal investment by doing system improvements and optimization of operations.
Major investment due to incorporation of modern energy intensive equipment and up gradation of existing equipment.
Formulating tentative time schedule for implementation of the recommendation.
Undertaking broad cost benefit analysis in terms of savings in energy consumption per unit of production and pay-back period.


Detailed Plant Layout diagram.
Detailed Process flow diagram.
Single Line Diagram.
Preliminary walk in Site Inspection
Data Collection
Building architect plan and Site Selection Studies.
Energy Management and SCADA System.
Energy and Material Balance System.
Performance Evaluations on Equipment’s.

Power Transformer
DG Sets
Capacitor Banks.
UPS System.
Lighting Systems.
Air Compressors.
Elevators etc
Furnaces etc
Fans and Blowers
Insulation and WHR system
HVAC system
Industrial Equipment’s.
Utility Equipment’s.
Steam System.
Energy Audit Recommendations.
Estimation and Costing.
Funding and Implementation