ENERGY AUDIT STUDY
                       Gujarat Energy Development Agency                          Subsidy Scheme
                       4 floor,Block no.11-12, Udyog Bhavan,                          (2008-09)
                       Sector-11,Ghandhinagar-382 017

Energy Conservation in Industries – Potential & Need
Industrial profits usually leakout through inefficient energy utilization. Increasing industrial competition and
ever-increasing costs of available forms of energy, especially fossil fuels, have focussed attention on the
need to cut down on wasteful energy consumption - to enhance & to sustain industrial profits. Since an
Energy Audit helps in identifying the areas where there is wastage and where scope for conservation
exists, it has become an important tool in crucial management decisions.

Energy Audit is a positive approach to energy cost reduction, preventive maintenance and quality control
programmes. It helps keep alive variations which occur in energy costs, availability and reliability of energy
supply, decide the appropriate energy mix, select the right conservation technology, retrofits for energy
conservation equipment, etc.

Energy Audit translates conservation ideas into actual money saved. It blends technically feasible solutions
with economic and other organisational considerations within a specified time frame. It is more beneficial
than a piecemeal introduction of short-term measures, as it is a comprehensive strategy that also
envisages gearing up of organisational structure and other infrastructure requirements.

Estimated energy conservation potential in Indian Industries is given in the Table given below. Marginal
investments are required for improving energy efficiency which is justified by the short payback periods..

Table: Energy Conservation Potential in Indian Industries
The industrial sector is a major energy-consuming sector accounting for about 50 % of the commercial
energy available in the country. The total energy consumption, including non-energy uses about 105 mtoe.
Of the commercial sources of energy, coal & lignite account for 56%, oil & natural gas – 40%, hydroelectric
power 3% and nuclear power 1%.
                                           % SHARE OF ENERGY                    % CONSERVATION
                                          IN PRODUCTION COST                        POTENTIAL
Refineries                                           1                                  8-10
Sugar                                                 3.4                                  25-30
Ferrous Foundry                                      10.5                                  15-20
Textile                                              10.9                                  20-25
Petrochemical                                        12.7                                  10-15
Chloro-alkali                                         15                                   10-15
Iron & Steel                                         15.8                                  8-10
Fertilizers & Pesticides                             18.3                                  10-15
Pulp & Paper                                         22.8                                  20-25
Glass                                                32.5                                  15-20
Ceramics                                             33.7                                  15-20
Aluminum                                             34.2                                  8-10
Cement                                               34.9                                  10-15
Ferro-alloys                                         36.5                                  8-10
Energy Audit
An Energy Audit Study helps an organisation to understand and analyse its energy utilisation and to identify
areas where energy use can be reduced, to budget energy use, plan and implement feasible energy
conservation measures that will enhance their energy efficiency, curtail energy wastage and substantially
reduce energy costs.

The Energy Audit serves to identify all the energy streams in a facility, qualify energy usage with its discrete
functions, in an attempt to balance the total energy input with its use. Energy Audit is thus the key to a
systematic approach for decision-making in the area of Energy Management. As a result, the Energy Audit
Study becomes an effective tool in defining and pursuing comprehensive Energy Management
Programme (EMP).

Energy Audit Study includes

•   Auditing of Energy Consumption (including any heat and power generated)
•   General examination of work place (including physical condition of organisation, its processes,
    occupancy time, and variations in ambient temparature and energy consumption pattern etc.)
•   Measurement of all energy flows.(including testing of boiler or steam raising, heating equipment,
    refrigeration, etc.)
•   Analysis and appraisal of energy usage.(e.g. specific fuel consumption, energy-product
•   Energy management procedures and methodology.
•   Identification of energy improvement opportunities and recommendations for energy efficiency
    measures and quantification of implementation costs and paybacks.
•   Identification of possible usages of co-generation, renewable sources of energy and recommendations
    for implementation, wherever possible, with cost benefit analysis.

Objectives of Energy Audit

The objective of providing EAS subsidy is to promote the idea of Energy Conservation in the industrial
sector of Gujarat. The work eligible for Energy Audit Study should be directed towards:
• Identification of areas of energy wastage and estimation of energy saving potential
• Suggesting cost-effective measures to improve the efficiency of energy use,
• Estimation of implementation costs and payback periods for each recommended action and
• Documenting results & vital information generated through these activities.

The Incentive – GEDA Energy Audit Subsidy Scheme
The Gujarat Energy Development Agency (GEDA), established in 1979 by the Government of Gujarat,
is a non-profit making nodal agency, devoted to the R & D and promotion in the field of Non-converntional
Sources of Energy and Energy Conservation.

The industrial sector is the largest consumer of commercial energy and evidently the sector with maximum
potential for conservation of vital energy resource of the country. There is a potentila for conserving 30-40%
energy in some key industrial clusters. Absence of systematic energy monitoring mechanism is a major
factor that is responsible for a large amount of unproductive energy utilisation in industries. GEDA’s Energy
Audit Scheme provides an opportunity to industries to visualise the advantages of systematic energy
analysis and increase their profit through better efficiency. Energy audits of industrial units, commercial
complexes, hotels and hospitals are covered under this subsidy scheme.

The subsidy will cover upto 50 % cost of the Energy Audit Study (EAS), upto a maximum of
Rs.20, 000/-. Industries with a electrical CD of less than 200 kVA and commercial complexes with
a electrical CD less than 75 kVA would only be eligible for subsidy under this Scheme.
GEDA Authorized Energy Audit Consultants
GEDA has authorized Energy Audit Consultants for providing consultancy services to the industries under
the EAS Subsidy Scheme. Energy audits conducted by these authorized Energy Audit Consultants would
only be eligible for the subsidy. List of GEDA authorised Energy Audit Consultants can be made available
on request to the industries.

Energy Conservation - The Savings
It has been established through over 2000 industrial energy audit conducted in the State during past one
decade that there is a potential for saving 5 to 50% energy in different types of industries. Types of
industries audited include chemical, pharmaceutical, dyestuff, textile & textile processing, metal processing,
bakeries, paper & pulp, engineering, electrical, agricultural & food processing, hotels, commercial
complexes, etc. By following good house-keeping and proper operational practices alone can reduce
energy consumption by 5 - 10 %. About 10 - 15 percent energy can be saved by use of high efficiency
equipments and 30-50% energy can be saved by replacing obsolete manufacturing machinery with
modernising plants. Investments on modernisation projects are paid back within period of 2 to 3 years
through energy saving achieved and considering present bank inflation rate this kind of return is considered
to be good.

Procedures for Applying For Subsidy

1. An industry willing to avail subsidy is required to apply in the format in Form I. Services of GEDA
    authorized Energy Audit Consultant engaged may be taken for applying procedures.
2. Application should be submitted to GEDA office alongwith
    • Proposal of the Energy Audit Consultant engaged by the industry - financial offer & scope of study.
    • Latest Annual Report of the Industry applying for subsidy.
3. Subsidy sanction issued by GEDA would indicate subsidy amount; elaborate scope of study; duration of
   study (with last date for report submission) and Terms & conditions of sanction.

Procedures for Claiming Subsidy

1. Submission of one copy of draft Energy Audit Report, alongwith industry’s comment, to GEDA before
   the specified last date.
2. Formal presentation of the report by the Consultant, in presence of GEDA representative and the
   concerned executives from the industry. The presentation to be arranged in the premises of the
   Industry, with prior intimation, on a mutually convenient date.
3. Acceptance of the EA Report, with modifications, if any, after the formal presentation.
4. Submission of 2 copies Final Report, spirally or comb bound, alongwith the Declarartion (as per
   Form II) duly signed/sealed, proof of payment made to the Energy Audit Consultant for the EA study
   and implementation energy conservation measures suggested in the report with time schedule,
   estaimates of savings and investments required.

 It is recommended that the Industry should take up implementation of energy saving measures
           as per the recommendations of the EA Report and closely monitor the results

Terms and Conditions of EAS Subsidy Sanction
1. The scope of the EA Study would be as specified by GEDA in its sanction.
2. The work eligible for the EAS subsidy would include assessment of energy use in the industry,
    outline of cost-effective measures, scope of energy saving, estimates of investments for
    implementation of corrective measures suggested, payback periods and reporting of results of
    these activities.
    Other works, in particular tariff comparison and analysis, preparation of tender specifications and
    tender evaluation, detailed design work, work connected with implementation of measures and long-
    term consultancy work are not eligible for subsidy under the scheme.
3. Any industry within the Gujarat will be eligible for availing subsidy under this scheme 'once' provided
    the industry has not availed subsidy under any other government scheme.
4. Energy audits conducted by GEDA authorized Energy Audit Consultants will only be valid for availing
    subsidy under this scheme.
5. The energy auidt must be conducted as per the scope defined in GEDA's sanction letter. Any deviation
    in the specified scope of study will result in cancellation of the subsidy.
6. The industry must forward the draft report to GEDA with its comments. A formal presentation of the
    report by the Energy Audit Consultant, in the premises of the industry should be arranged in the
    presence of GEDA official(s) and concerned executives from within the industry. Only after the
    presentation and discussion the report will be accepted.
7. The claim for subsidy is subject to the sanction issued by GEDA. Any claim without a prior sanction of
    GEDA would not be entertained. All payments made by the industry to the Energy Audit Consultant
    should be done so by cheque or demand draft only.
8. It is mendatory for the industry to implement EC measures so as to achive atleast 20% of the financial
    saving projected in the Final Report.
9. GEDA shall follow up on the post-audit implementation by the industry, with either a written
    communication or a personal visit by its representative to the industry. The industry would be obliged to
    respond positively to such visits and/or correspondances.
10. GEDA reserves the right to reject an application for EAS subsidy without giving reasons and to change
    the terms and conditions of the scheme and to terminate the scheme at any time.
11. The Energy Audit Report would be a confidential document. However, GEDA reserves the right to use
    and publish data and information generated during the study, for dessemination to other similar
    industries. The industry may have the option of not indicating its name on the Report. In such cases
    GEDA's sanction number & date should be mentioned in the Report.
12. If the study is not completed within the specified time limit, GEDA may decide to cancel the subsidy.
    However, extension, if required, may be requested, before the due date of reporting, stating reasons for
    the extension. It would be at GEDA's descretion to grant such extension.
13. Terms Of Payment Of Energy Audit Subsidy
    GEDA shall release subsidy amount directly to the industry against submission of two copies of the
    Final Report. The industry shall submit the subsidy claim letter alongwith `Declaration' (Form II) and
    proof of payment released to the Energy Audit Consultant. The subsidy would be disbursed as follows:

    •   50% against submission of Final Report
    •   50 % against submission of the post-audit Feedback Report, duly certified jointly by the industry
        and the Energy Audit Consultant. Payment can be claimed a within one month from the date of
        submission of the Final Report

    For details please contact:
    Sr.Project Executive/Assistant Project Executive,
    Gujarat Energy devlopment Agency,
    4th Ffloor, Block No 11-12, Udyog Bhavan,
    Sector-11, Gandhinagar.

Date of Isssue:                                                           APPLICATION FORM (Page I)
                                ENERGY AUDIT STUDY
                     Gujarat Energy Development Agency                Subsidy Scheme
                     4 floor,Block no.11-12, Udyog Bhavan,                (2008-09)
                     Sector-11,Ghandhinagar-382 017

The Director
Gujarat Energy Development Agency

Details of Applying Industry
Name of Applying Industry             M/s
Full Address (for correspondence)
& Contact Tele/Fax.nos.

Name of Unit                          M/s
Site Addresss
(Unit to be studied)
Senior Management Contact             Mr.
(at Factory Site)                     Designation:
Tele/Fax/Mobile Nos
Status of the Industry:
(Whether pvt., public, etc.)
Company Registration No:
Number of Employees
Approximate Floor Area

Details of EA Consultant Engaged
Name of Consultant                    M/s
Tele/Fax No:

Name of Contact Person

Details of Energy Audit Proposed
Cost of EA Study                      Rs.            (Copy of Consultants’ offer)

Estimated mandays for EAStudy                        Mandays

Duration of the EA Study                             Mandays
                                                                 APPLICATION FORM (Page II)

Product & Processes
                                                                  Annual Production
No.                      Products/Services
                                                                  (in specific units)

Brief Description of the Manufacturing Process / Service

Annual Turnover: Rs.

Fuel / Energy Consumption
                                 Annual                                          Annual
       Energy/Fuel            Consumption in     Source      Unit Price in    Expenditure on
                               specific units                     Rs.        Energy(lakh Rs.)
Coal                                      tons
High Speed Diesel Oil                       kL
Light Diesel Oil                            kL
Furnace Oil                                 kL
LSHS                                        kL
Electric Power                      lakh units
Liq.Petroleum Gas                         tons
Natural Gas
Captive (DG Set)

Details of Power Demand
Contract Demand : ________ HP/KVA/kW                  Category : HT / LT
(Enclose copy of the latest Power Bill)
                                                                         APPLICATION FORM (Page III)
Energy Consuming Processes/Equipments
S.No    Name of Major energy          Rated capacity      Monthly          Monthly Energy       Related
        consuming process /           of process/         Operation        Consumption          Output
        equipment                     equipment           (inhours)


We attach herewith the scope of study proposal (s) with a request to accord sanction of subsidy under the
GEDA Energy Audit Subsidy Scheme (2008-09) towards the cost of the Energy Audit Study of our unit.
M/s ________________________________________________________________________________
to be conducted by M/s __________________________________________________GEDA’s authorized

We are willing to provide information in response to a follow-up visit or to a postal enquiry from GEDA or its
representative about the outcome of the Energy Audit Study.

Date : _________________                                   Seal & Signature ____________________

                                                           Name of signatory: ____________________

                                                        Designation: ____________________

   • Latest Annual Report of the Company
   • Proposal of the Consultant alongwith the Scope of Study.
   • Latest Electricity Bill

Application received on : ________                 Application processed on : ________

Sanction issued on : ______ for Rs. ___________ ( GEDA/TEC:EC/EAS/______)

Draft EAS Report recd on: ________               Industry Visited on __________ by :

Payment processed on: __________                 Payment relased on: ______________
                                                                             DECLARATION FORM - II

                               ENERGY AUDIT STUDY
                    Gujarat Energy Development Agency                          Subsidy Scheme
                    4th floor,Block no.11-12, Udyog Bhavan,                        (2008-09)
                    Sector-11,Ghandhinagar-382 017

                  (To be certified by Chief Executive of the Industry or his equivalent)

   1. We confirm that :
         I. The study was carried out and the report was prepared in accordance with the agreed scope
            of study and terms & conditions laid down by GEDA in the subsidy sanction
             (Ref.No: GEDA/TEC:EC/EAS/2008-09/ __________ dated: __________;)
        II. We are satisfied with the outcome of the study and the EA report and confirm that the data
            contained in the report and in this form are correct to the best of our knowledge;
       III. We are satisfied with the general business conduct of the Consultant;
       IV. All the suggestions made during the presentation of the draft report have been incorporated
            in the final report.

   2. We declare that we have made full payment to the Consultant. Copy payment receipt/s enclosed
      for reference.

   3. We agree to provide information to a representative of GEDA, who may write or visit the site any
      time in the future to collect feedback, on measures implemented and energy savings accrued as a
      result of the Energy Audit.

   4. We are herewith sending a brief summary of actions we propose to take as a result of this study.

   5. We enclose herewith three [2] copies of the Energy Audit Study report.

   6. Comments on the Energy Audit Report:

   Date : _____________                      ______________________________________
                                             Signature - for Industry

                                             Name & Designation of Signatory

Encl : 1. Two copies of Final Energy Audit Report
       2. Copy of payment receipt/s issued by Consultant
       3. Summary of EC Implementation Program.

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