Rising energy costs and increasing environmental pressures have highlighted regular energy audits as a strategic tool for organisations to manage power consumption, providing immediate cost savings and an energy efficiency roadmap to align with sustainability goals.
An energy audit involves comprehensive inspection, assessment and evaluation of the energy inflows and outflows in a building, process, or system.
Unlike most other types of audits, energy audits have entirely positive connotations for the auditee and are undertaken on a regular basis to conserve energy, reduce costs, and improve efficiency.
Not all energy audits consider the same level of detail, ranging from a basic audit all the way to investment grade audits, which give a detailed examination of data, recommendations around investing substantial capital, and a highly accurate cost-benefit analysis.
New technologies have also reshaped how audits can be undertaken, enabling deeper analyses and more precise data.
Some transformational technologies for energy audits are building information modelling, the Internet of Things and advanced sensors, blockchain technology, and cloud computing.
The median type, or general audit, generally includes detailed analysis with data collection and benchmarking to identify energy-saving opportunities, which is achieved through a brief site survey as well as an evaluation of energy usage.
Energy usage data analysis typically includes detailed tariff analysis, time-of-use analysis, energy usage breakdowns of all main energy-using equipment, and asset registry. For organisations committed to ESG principles and corporate social responsibility, energy audits are an advantageous way to make operational improvements at lower costs, while also demonstrating commitment to environmental stewardship.
Substantial cost saving is only the first of the long-term benefits gained through regular, holistic, sustainability-focused energy audits. They also contribute to improved operational efficiency, increased asset values, and enhanced corporate reputation.
Importantly, they provide a pathway for organisations to pursue continuous, tangible, and measurable improvements in the business, and allow for better informed investment decisions on building upgrades or operational adjustments.
For industries reliant on energy-intensive processes, such as manufacturing and production, significant savings in both energy consumption and cost can be achieved with energy audits, while contributing to broader environmental goals.
In many cases, energy-intensive industrial processes, or even simply heating, ventilation and air-conditioning(HVAC) systems in commercial buildings, are not initially designed with energy efficiency in mind and thus can represent an enormous opportunity to realise cost and energy savings.
Effective HVAC design coupled with new technologies can ensure safe and comfortable working environments, and can also help improve energy efficiency and minimise a building’s carbon footprint.
There are several stages in the energy audit process but will always begin with the initial preparation of collecting relevant historical data (energy consumption, equipment inventories, utility bills) to establish a baseline for energy use as well as identify anomalies or trends.
Once preparation is complete, an in-depth visual inspection of both the structure and energy systems of the building is conducted, including lighting, appliances, insulation, and HVAC.
The visual inspection helps detect outdated equipment, inefficiencies, and areas of energy loss and is together with the baseline data analysed for pinpoint efficiencies to calculate potential energy and cost savings.
The analysis stage can often be simplified by benchmarking against similar buildings when assessing relative performance.
Based on the analysis results, a report with actionable recommendations around energy efficiency is produced, ranging from low-to-no cost behavioural changes or changes to organisational culture, to significant upgrades such as replacing the HVAC system.
The final two stages comprise implementing the recommendations to achieve the desired energy savings, followed by ongoing monitoring and verification to ensurethe changes remain effective.
A study published in March this year sought to examine the impact on energy outcomes from randomised energy audits focused on small- and medium-sized metal processing firms in ShandongProvince, China.
The results showed that the audit intervention reduced firms’ unit cost of electricity by 8 per cent on average. Firms with more developed and structured management practices showed higher rates of recommendation adoption.
The researchers said: “We [found] that firms with higher management scores increased adoption while firms with lower management scores reported higher unit costs of electricity at baseline and that this gap closed after our intervention.
“Using electricity more efficiently is one way a firm can potentially reduce both its indirect carbon dioxide emissions and its input cost – scholars have observed that many energy efficiency measures expected to be profitable are often not adopted, suggesting an ‘energy efficiency gap’.
“Well-developed management practices may ensure energy audit information reaches firm decision-makers, although the result may be actions aligned with firm objectives such as cost savings and productivity.”Notably, the research supported that an organisation’s response to an energy audit depends on its broader objectives, corporate culture, and institutional constraints.
The researchers added: “Energy [audits] may not be a silver bullet for reducing energy use and associated GHG emissions. Structured management practices may increase managers’ willingness and ability to try out recommendations that are potentially economically and environmentally beneficial.”
