Energy Audits Create Value

Any size facility can manage use and reduce costs

Energy audits have been around for decades, and as energy costs have risen and governments have passed legislation aimed at reducing consumption, programs to audit and reduce use have become more prevalent. In the beginning, these programs were developed on an asneeded basis without uniform methodology. Each organization, particularly those in industry, developed its own energy conservation methods, rather than working with similar companies to establish one process to be adapted to individual company circumstances. Audits were created to evaluate program effectiveness.

What Is an Energy Audit?

An energy audit is a means to calculate the overall success of an energy conservation program. This is done by measuring the amount of energy used for normal business practices. Most processes consume energy, and the first law of thermodynamics outlines conservation of energy, meaning that we always should be able to account for energy because it is neither created nor destroyed in the facilities and systems we operate. An audit is part of an energy management program. Although they have various degrees of complexity and can vary widely from one organization to another, every audit typically involves data collection and review.

In short, an audit is designed to determine where, when, why, and how energy is used. This information can then be used to identify opportunities to improve efficiency, decrease costs, and reduce greenhouse gas emissions that contribute to climate change.

One of the first issues to address is how to set up the energy management system’s boundaries—in other words, where we begin and end the audit. For example, if we have a building, the boundaries would encompass the area within the building and all the equipment housed there that consumes energy. According to ISO 50002 on energy auditing, the challenge is to define the system being considered and measure energy that flows into and out of the system.

The second challenge is more difficult because it involves collecting energy flow data from various sources through direct measurement. It also requires estimating energy flows that cannot be directly measured, such as heat loss through a wall or vented air.

Internal Audit, External, or Both?

Although energy audits are often carried out by external consultants, a number of measures can be taken using internal resources. In Canada, the Canadian Industry Program for Energy Conservation (CIPEC), working under Natural Resources Canada (NRCAN), has developed a detailed guide to assist industries in conducting energy audits. This guide outlines a practical, user-friendly method of undertaking energy audits in industrial facilities so that even small enterprises can incorporate auditing into overall energy management strategies.

External audits tend to focus on energy-saving technologies and capital improvements. In-house audits tend to reveal energy-saving opportunities that are less capital-intensive and focus more on operations. Organizations that conduct an energy audit internally can gain considerable experience in how to manage their energy consumption and costs. By going through the auditing process, employees can learn to regard energy as a manageable expense, critically analyze how energy is used, and become more aware of how dayto- day actions affect plant energy consumption.

By conducting an in-house audit before enlisting outside experts, organizations can become more energy- aware and address readily apparent energy-saving opportunities, especially those that do not require extensive engineering analysis. External experts can then focus on more complex potential energy savings actions. An in-house audit can narrow external auditors’ focus to systems that are particularly energy-intensive or complex.

How Do You Set up an Energy Audit?

According to ISO 50002, the energy audit process consists of the following stages:

  1. Energy audit planning
  2. Opening meeting and data collection
  3. Measurement plan
  4. Site visit
  5. Analysis
  6. Energy audit reporting
  7. Closing meeting

When developing an internal program, it is important to choose an energy auditor who has knowledge of the operations and an understanding of the scope and objectives of the audit. Depending on the type of company, the auditor may require special training to meet qualifications. A number of courses are available to assist energy auditors interested in using the ISO 50002.

ISO 50002 energy auditing training should teach participants to:

  • Review basic requirements for planning, conducting, and reporting an audit in accordance with ISO/IEC 17021-1 and ISO 50003.
  • Understand certification, the certification process, and audit types.
  • Apply energy concepts to audit situations to determine if the energy performance is improving and the management system is effective.
  • Calculate the number of audit days using ISO 50003.
  • Understand how multisite, temporary sites, and audit feasibility are managed.
  • Use typical audit materials such as checklists, notes, etc.
  • Evaluate objective evidence, use a four-part nonconformity statement, assess severity using major and minor definitions, and present resulting information.
  • Review how to put together and present an audit report.

CSA Group has been instrumental in getting ISO 50001 adopted in Canada, making the country one of the first in the world to adopt the standard. Subsequently, ISO 50001 support standards have been initiated or developed with Canadian contributions— among these is ISO TC 242 on baseline energy performance indicators.

Energy conservation programs and audits are excellent tools to help organizations control their energy use. Setting up a solid program and auditing it on a regular basis can be a valuable way to reduce the strain on the energy grid and lower costs of doing business. They provide information that can allow for greater efficiencies and waste reduction. Every organization from small to large has the potential to benefit from an energy audit program.

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