It approach for energy management in electrical demand

International Journal of Management (IJM), – 6502(Print), ISSN 0976 – 6510(Online)
International Journal of Management (IJM), ISSN 0976
Volume 1, Number 2, July - Aug (2010), © IAEME
ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online) IJM
Volume 1, Number 2, July - Aug (2010), pp. 20-28
© IAEME, http://www.iaeme.com/ijm.html ©IAEM E

IT APPROACH FOR ENERGY MANAGEMENT IN
ELECTRICAL DEMAND
U. Prasad
Faculty, BIT Mesra, Ranchi
E-Mail: umeshprasad_bit@rediffmail.com

C.K.Panigrahi
Professor, School of Electrical Engineering
KIIT University, Bhubaneswar
E-Mail: panigrahichinmoy@yahoo.co.in

P.K.Chattopadhyay
Professor, Department of Electrical Engineering
Jadavpur University, Kolkata
E-Mail: Pk_chattopadhyay@hotmail.com

ABSTRACT
Every year, the demand of electricity is increasing by 6-8 per cent, while
production is not increasing in the same ratio. Due to this reason, the gap between
demand and supply is constantly increasing. To reduce this gap, there are two alternative
ways: one is to generate more electricity, which requires huge investment and second is
to conserve the electricity from utility side that is Demand side. The Demand Side
Management is a strong tool for Energy Management and Conservation in industries.
This paper explains how conservation and management of electrical energy can be made
possible by using computers and advanced metering technologies in industrial sector.
Keywords:
Demand side management, Time-of-Day tariffs, File transfers Port, Energy
Saving Company Organization.

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)

INTRODUCTION
Energy management is the judicious and effective use of energy to maximize
profits and enhance competitive positions. Some desirable objectives of energy
management programs include - conserving energy, thereby reducing costs. Cultivating
good communications on energy matters. Developing and maintaining effective
monitoring, reporting and management strategies for wise energy usage. Finding new and
better ways to increase returns from energy management programme from all employees.
Reducing the impacts of curtailments, brownouts or any interruption in energy supplies.
Review of contract demand and Monitoring to prevent excessive demand power are the
keys for Energy conservation and cost reduction. These are achieved effectively through
IT based Energy Auditing and Energy Management through demand side. Due to its
implementation it is observed that there is much saving in the wastage of electricity and
thereby the reduction in monthly bill of industry. The extra cost for the instrumentation
will be recovered within a short period. Hence it is suggested that IT based Energy
Auditing and Energy Management through demand side in the industrial sector be
implemented at the earliest. In plain and simple terms Energy conservation essentially
means effective & efficient utilization of energy by reducing wastages as far as
practicable. Further, for efficient energy conservation it is of vital significance that
Energy Audit is done in a proper manner. Auditing is the process to identify the wastages
of energy without in any way affecting productivity and growth rate. Through energy
conservation 15 to 25% of total energy can be saved in various sectors such as
Agriculture, industry etc. This paper makes use of the inferences obtained by carrying out
various case studies and emphasizes upon the need for conservation and management of
electrical energy and its optimization using Information Technology.
ENERGY IN INDIAN SCENARIO
Post independence it has been observed that India’s power requirements has
increased considerably owing to rapid industrialization. Indian industries especially in
the present scenario of crippling power cuts, rapidly escalating oil pool deficit, fuel
shortages, global warming, alarming pollution levels etc. India today faces a peak
shortage of about 11-18% and an energy shortage of about 7-11%. Today, energy

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conservation & efficiency are hard core economic and environmental concern for any
business house. In India about half of the total consumption of commercial energy is by
the industrial sector. There is tremendous scope of energy saving to the tune of 15-25%.
Energy conserved is after all is energy generation; hence there is a need for energy
management. The Govt. of India has ambitious plans to achieve an addition of about
95,000 MW of new power generation capacity by 2012 to meet the current shortfall and
also to achieve the projected growth targets during 10th and 11th Five Years plans. It is
estimated that the addition of new capacity will require at least Rs.80 Million/MW for
generation plant cost as well as associated T and D network cost.
ENERGY MANAGEMENT GOALS
Energy management is a managerial cum technical activity which aims towards
the judicious and effective use of energy to maximize profits and enhance competitive
position in the globally changing competitive environment. Some desirable objectives of
energy management programs include -Conserving energy, thereby reducing costs.
Cultivating good communications on energy matters. Developing and maintaining
effective monitoring, reporting and management strategies for wise energy usage.
Finding new and better ways to increase returns from energy management programme
from all employees. Energy Conservation means achieving the same level of output with
smaller energy inputs. Energy audit is an effective Tool for energy conservation and
waste minimization in industrial undertakings. Energy audit is an official survey/study of
the energy consumption / processing / supply aspects related with an organization,
system, process, plant, equipment. The objectives of the energy audit are to recommend
the steps to be taken by the management for improving the energy efficiencies, reducing
the energy costs and improving the productivity without sacrificing quality, standard of
living / comforts and environmental balance [6]. To test the electrical system and identify
conservation opportunities, following steps must be carried out by an industry [3]:

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Form Energy Audit Team.

Carry out preliminary Energy Audit.

Carry out detailed Energy Audit

The energy survey / audit is the first step in collecting all the relevant data for the
industry for which the conservation techniques are to be applied. Data must be obtained
for each type of energy used and cost incurred by the industry for at least two three
previous year of the year of study. Also the actual measurements (on site) of the various
energy devices (motors, lightings etc.) should be included as part of the energy
survey/audit. The energy audit/ survey team has the task to explore the potential areas of
energy conservation based on the findings of the survey/audit. This could involve energy
management with motors, lighting, tariff control, power factor management, the use of
energy efficient devices (motors and lighting), the possibility of cogeneration, and the use
of technical awareness and motivation programs for the industry personnel.[4]
ENERGY EFFICIENCY AND CONSERVATION SECTOR: MAJOR
OBSTACLES
Following are the major obstacles which act as a hindrance as far as attainment of energy
Efficiency is concerned:
• Inefficient pricing of energy which results in inefficient use.
• Short term perspective of industries
• No Time of Day based tariff mechanism (higher tariff for peak period) in most
of the states.
• Lack of medium term loan and leasing facilities for energy saving products
and devices.
• Lack of awareness among energy end-users

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• Obsolete energy consumption standard (no periodic revisions, labeling is not
yet compulsory)
• No indigenous R and D efforts for energy efficient technologies.
ORGANIZATIONAL FACTORS:
• Ignorance of what is available in terms of technology and know-how to
promote efficiency and proper maintenance.
• Bias in favor of encouraging energy provision and usages without similar bias
towards efficiency.
• Unwillingness to press for full-cost pricing in developing countries usually for
understandable social and political reasons.
• Poor information about and lack of experience in the energy sector.
• Opposition from politicians and public revenue officials to the imposition of
earmarked taxes to promote energy efficiency.
• Poor linkages between utilities and users and between purchasers and users.
• Intellectual property rights, which are intended to reflect the efforts and costs
put into developing new ideas, products and processes.
• Unwillingness to promote public information campaigns.
FINANCIAL AND ECONOMIC PARAMETERS:
• Difficulty in identifying and calculating savings with precision. Value of, and
returns on, existing assets.
• Financial accounting and budgeting methods.
• Low energy prices, subsidies which encourage marginal demand at minimal
cost.
• Threshold level of energy and cost savings (below which investments do not
seem worth making).
• Perceived high capital cost of energy efficient technologies as a barrier for poor,
heavily indebted countries.

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TECHNICAL ASPECTS
• Non-availability of more advanced technology.
• Non-availability of new materials and other substitutes.
• Infrastructure limitations.
• Tendency towards over sizing/low capacity utilization.
• Lack of research, development and demonstration.
• Lack of technical and managerial expertise.
PROPOSED CONCEPTUAL FRAMEWORK FOR EFFECTIVE IT
BASED ENERGY AUDITING AND MANAGEMENT
For quite a few years, utility companies in the advanced countries have been
leveraging Information Technology (IT) for obtaining significant benefits. Much of the
information used for this purpose is distributed over vast geographical domains and is to
be acquired, transported, processed and presented in real time. The Indian power sector
too has introduced with mixed successes IT solutions in several areas. The applications,
however, have been isolated and sporadic so far. The recent past has seen a dramatic
change in the Indian power sector, historically plagued by low return of investments. The
prospect of intense competition is emerging with the entry of private, including foreign
MNC and foreign investment. The outlook for this sector is of a rapid expansion to
support India’s economic engine. One is now forced to think seriously in terms of
increasing efficiency by increasing plant load factor (PLF), reducing T&D losses,
minimizing power theft and increasing service quality without increasing the manpower
requirement to remain competitive in the open market. This will require not only the
modernization of equipment, but also better planning, supervision, monitoring and
control of all activities related to power generation, transmission and distribution and
commercial operations.
These systems are developed using a host of enabling core technologies such as
those related to Data Communications, Centralized and Distributed Databases, Decision
Support, Real-time Computing, Power System Analysis, Geographical Information
Processing, Graphics and Multimedia, Distributed Process Control, Simulation and
Forecasting and Enterprise Resource Planning (ERP). Some of these Information

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Systems such as MIS and MMS are generic in structure for all industries, while being
specific to a power utility in some functional aspects.
The primary objectives of all the solutions are three-fold:
• Ensure availability of quality power
• Ensure high operational efficiency
• Maintain ecological balance.
IT can play a very vital role in effective energy conservation & energy audit. It is
necessary that the customer has to be made aware of various useful information such as
different DSM tools, power factor of industry, different data, peak load etc. Hence it is
proposed to implement IT based Energy Auditing and Energy Management programmes
and hence to connect computer with various kinds of power meters, to collect and
analyze the appropriate data and to send the information to the customer or energy
manager through email or SMS to that industry. The IT-based Energy Auditing and
Energy Management on Demand Side consists of the following steps:
STEP 1: Data Collection
STEP 2: Data Measurement
STEP 3: Data Analysis through relevant softwares.
STEP 4: Advanced Data Management.
STEP 5: Network Communication.
ADVANCED DATA MANAGEMENT SYSTEM THROUGH
SPECIALIZED SOFTWARES
After the accurate collection, measurement & analysis is done the available
graphs and tables generated based upon the available information (via relevant
software’s) can be sent to the industry to take corrective action. This data is sent using
data communication technologies like LAN, WAN, & Internet. From such type of
arrangement, the data is directly made available to the client side. A printer can be
connected through cable to print measurement data. If customer has a media reader
connected to PC, measurement data and settings can be uploaded directly to a PC. Thus,
in industry if load is increased above maximum demand, or power factor is changed from
desired value, or if harmonics are present, then energy auditor or customer can easily

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know the data and its variation, and can easily take corrective action. Thus, energy
utilization will be made proper and demand side energy management can be achieved.
NETWORK COMMUNICATION VIA WWW
Through network communication technologies, Data collection, Data
Management, WEB function, e-mail alarm function, FTP functions are possible. In WEB
function mode, one can monitor Internet Browser on PC. The alarm from this system can
be sent to PC as an e-mail. In this arrangement, one can send data as a file to PC by using
FTP function. In this arrangement, Energy Auditor can also be used to collect data from
different locations by using measurement instruments through relevant network soft
wares. In such an arrangement the role of the Web Server is of critical significance. The
Web server function makes it easy to set up a remote monitoring environment with zero
startup costs. Thus, from this arrangement information regarding different instantaneous
values, of energy can be saved. Important SMS, e-mail can be sent to industry customer.
If one wishes to exchange data between remote LANs (such as between a main-office
LAN and a laboratory LAN), one can connect them through a PSTN line or leased line to
form a WAN. This arrangement can transmit the data such as, alarm notification
messages, power-restoration messages following an outage, memory-full messages,
storage-media-full messages, periodic instantaneous values, report data, and other
information. Multiple recipients can also be registered. When connected to the Internet,
this system can send e-mail anywhere in the world. An e-mail-capable cellular phone can
be used to receive instantaneous remote notification of messages.
CONCLUSIONS
The energy conservation is critical to any society’s future economic prosperity,
industrial development. There exists a lot of scope for energy conservation at all stages in
the industrial sector which is the largest consumer of available commercial energy. And
energy can be saved by systematic procedure of energy audit, implementation of
recommendation of energy audit. Though the actual energy conservation techniques and
energy saving equipments to be used vary from industry to industry, the replacement of
existing equipment with energy conservation equipment should be done after proper
analysis of cost benefit analysis and payback period.

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The solution of energy conservation and cost reduction can be summarized as,
Obtaining load curves smoother, Review of contract demand and Monitoring to prevent
excessive demand power are the keys for Energy conservation and cost reduction. These
are achieved effectively through IT based Energy Auditing and Energy Management
through demand side. Due to its implementation it is observed that there is much saving
in the wastage of electricity and thereby the reduction in monthly bill of industry. The
extra cost for the instrumentation will be recovered within a short period. Hence it is
suggested that IT based Energy Auditing and Energy Management through demand side
in the industrial sector be implemented at the earliest.
REFERENCES
1. Proceedings of International seminar on ‘Energy Audit & Conservation’ of IEEMA,
Mumbai, 2001.
2. K. R. Kulkarni, S. D. Inamdar, V. L. Sonavane ‘DSM & Energy Audit – Future
thrust areas in distribution system’ M. S. E. B. Mumbai.
3. Shankar Lal ‘Energy Efficiency & Conservation – Indian Perspective’ IREDA
News, Dated 20th June 2003.
4. Pabla A. S. ‘Electrical Power Systems Planning’ Mc-Milan India Limited, New
Delhi, 1998.
5. Proceedings of International seminar on ‘Energy Audit & Conservation’ of IEEMA,
Mumbai, 2001.
6. Shankar Lal ‘Energy Efficiency & Conservation – Indian Perspective’ IREDA
News, Dated 20th June 2003.
7. Pabla A. S. ‘Electrical Power Systems Planning’ Mc-Milan India Limited, New
Delhi, 1998.
8. Paul O Callaghan ‘A comprehensive guide to reducing cost by efficient energy use’
Mc-Graw Hill Book Company, London, 1993.
9. Albert Thuman P. E. ‘Plant Engineers & Managers Guide to Energy Conservation’
Van Nostrand Reinhold Company, New York, 1977.
10. B. N. Raval ‘GEB’s efforts towards energy conservation through DSM’ G. S. E. B.
Baroda.

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It approach for energy management in electrical demand

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