A Field Tested Model of Industrial Energy Conservation Assistance to Small Industries

Abstract

The University of Tennessee is one of three universities selected by the Industrial Energy Conservation Program of the Department of Energy to develop and demonstrate the concept of an Energy Analysis and Diagnostics Center (EADC). The objective of the EADC program is to develop and demonstrate the methodology through which universities may provide assistance to small manufacturing firms in identifying and analyzing energy conservation opportunities.

The University of Tennessee EADC has completed 52 industrial energy audits of Tennessee manufacturing firms from which over 150 feasible ECO's have been identified and analyzed. The process consists of the following steps: (1) Analyzing energy consumption and costs for a two year period; (2) Conducting a one day on-site energy audit; (3) Analyzing each ECO for potential energy consumption and cost savings; (4) Preparing a technical report to the firm which contains specific recommendations of economically feasible ECO's; (5) Providing the firm with the appropriate financial analysis.

The main emphasis of the process is on quantification of potential energy savings so that the firm has the necessary quantitative data for making a capital investment decision. The average benefit cost ratio of the EADC program has been calculated to be approximately 8. Reduction in annual energy consumption identified from the ECO's was approximately 13% and reduction in annual energy costs was approximately 10%. The entire process is described in sufficient detail to permit other universities to follow the field tested methodology and develop their own programs.