This document discusses energy management in small scale industries as a vital tool for sustainable development. It first provides background on the importance of energy management and conservation. It then summarizes the results of a survey conducted on energy practices in textile and foundry cluster industries in India. The survey found a lack of energy auditing and awareness. Finally, it proposes a six-step plan for improving energy management in small industries: 1) Generate awareness, 2) Conduct energy audits, 3) Assess energy use, 4) Schedule conservation programs, 5) Enhance energy efficiency, and 6) Consistently monitor progress. Implementing this plan can help small industries improve energy efficiency and competitiveness.

1. International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 – 6340(Print),
ISSN 0976 – 6359(Online), Volume 5, Issue 10, October (2014), pp. 115-120 © IAEME
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ENERGY-MANAGEMENT IN SMALL SCALE
INDUSTRIES: A VITAL TOOL FOR SUSTAINABLE
DEVELOPMENT
Jatinder Chhabra
Research Scholar, Department of Mechanical Engineering,
Shri Venkateshwara University, Gajraula, India
ABSTRACT
Risk of continuous depletion of natural resources of energy has led to a greater
awareness for energy management throughout the world. Energy should not only be
used wisely and economically, it should also be conserved effectively for future
generations. Industry, being one of the major users of energy, by adopting energy
conservation, can contribute substantially for social and economic development of a
country. Small and micro industries often exist in the form of clusters and act as an
important component of Indian economy. Energy being an vital input, enhancing its
utilization efficiency not only helps in improving competitiveness of Small scale
industries through cost reduction but also aids in improving energy linked environmental
pollution. A survey has been conducted on energy practices being adopted by some cluster
industries in Haryana and Punjab and a six-stepped Plan has been proposed for improving
performance of energy management programme in these industries.
Keywords: Energy Management, Energy Audit, Energy Conservation, MSMEs, Sustainable
Development.
1. INTRODUCTION
The Micro Small and Medium Enterprises (MSMEs) play a crucial role in the overall
industrial economy of the country. In current years, the MSME sector has constantly registered
superior growth rate compared to the overall industrial sector. The major benefit of the sector is
its employment probable at low capital cost [1]. For a nation, economic development crucially
hinges on both increased supply and efficient use of energy inputs. Energy saving helps in
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2. International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 – 6340(Print),
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cutting down costs of production and hence raises levels of productivity. There is lack of
concern among Indian industries, especially small scale sector, to organise themselves as a
sequel to energy crisis for reducing their energy intensity [2]. Recognizing the scope and
potential for energy conservation and the urgency to outline specific programmes in this field, National
Productivity Council recently carried out energy audit studies in 1200 industrial units
covering 12 sectors of Indian industries. These studies indicated that there is a potential of
saving of energy up to 15 percent of the energy consumed in the industrial sector [7].
The potential for energy savings in the process modification is placed around additional 15
percent. The R&D programmes that could be adopted in the long term are to yield
further 15 percent more energy savings. Thus the need to conserve energy, particularly in industry
and commerce is strongly felt as the energy cost takes up substantial share in the overall cost structure
of the operation. Hence it calls for management of energy[3].
2. AN INVESTIGATION ON ENERGY MANAGEMENT PRACTICES ADOPTED
BY SMALL SCALE INDUSTRIES
A Preliminary survey on energy practices being used has been carried out in two cluster
industries, (1).Textile and Spinning Units in Ludhiana (Punjab) (2). Foundry Units in Ambala and
Garaunda (Haryana). Information was collected personally and through questionnaires on
measures being adopted for energy audit and energy conservation in these industries. Some of the
findings are
(a) Decreasing use of oil and coal has been offset by substantial increase in electricity
consumption over last ten years.
(b) Awareness on energy-management was lacking, (65 percent industries never, 20 percent
industries seldom and 15 percent industries regularly carried out an energy audit).
(c) Resource allocation for effecting energy conservation is almost nil in most of the
industries
(d) Almost all industries (95 percent) admitted that energy waste always led to a hike in
cost of production, though action plan was mostly missing.
(e) In almost all units, poor availability of electricity affected production and resulted in
poor utilization of resources. So self-generation of power and use of renewable energy
sources was on priority plans but lack of funds and information was retarding its
implementation.
(f) Some broad areas and opportunities for energy conservation which can be effected in
these industries can be identified as:
• Adoption of direct saving techniques that help avoid wastage and wasteful
uses such as good housekeeping measures and regular maintenance;
• Changeover of costly and exhaustible sources of energy such as oil, by
new and renewable energy sources and by relatively abundant energy
sources like coal.
• Implementation of total energy systems in industrial process such as co-
generation, integration of all thermal operations etc.
• Reconditioning of energy wastes through various waste heat recovery
systems.
• Retrofitting of old industrial machinery to achieve optimal energy
utilization.

3. International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 – 6340(Print),
ISSN 0976 – 6359(Online), Volume 5, Issue 10, October (2014), pp. 115-120 © IAEME
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• Improving efficiency of conversion of primary fuels into secondary forms
of energy, ensuring the quality of energy supplied and minimizing
transmission and transport losses.
• Adoption of material conservation measures to reduce the consumption of
energy intensive materials and products along with recycling of materials,
re-using of components, etc.
• Embracing of preventive maintenance techniques to cut down the energy
and material costs involved in routine overhauls and breakdowns.
• Arrangement for industrial processes to monitor energy use.
• Rigorous research on viable energy alternatives and less energy
intensive techniques.
3. SIX STEPPED PLAN FOR ENERGY MANAGEMENT IN SMALL
INDUSTRIES
Energy used in industries is basically in three primary forms: electricity, coal and oil. All
these three sources need conservation for sustainability and growth [4].In both industrial and
commercial operations, energy is a critical input that is used in numerous site-specific
applications, such as transforming raw material, operating computing and communication
equipment, and providing comfort and lighting. While successful organizations always pay
particular attention to their primary factors of production, energy inputs are often overlooked
because they are complicated to understand and easy to take for granted. Taking a laissez-faire
approach to the management of energy is the easy way out, but it can have significant bottom-
line consequences. Effective energy management offers a range of advantages including
reduced operating cost, mitigated environmental impact, and improved conversion efficiency.
It can provide a measured operating cost advantage over competitors and increased
sustainability of operations [5]. Although implementation requires both commitment and
investment, most companies can develop and put into practice an effective energy
management plan, creating major impacts to a company’s bottom line [5].
For any energy management programme to be successful, a rational approach to
energy measurement, evaluation, planning and improvement is essential. Energy-waste
has assumed alarming proportions and to check further degradation, conservation measures
ought to be adopted and reported on a mandatory basis by the industries [6]. Based on the present
scenario, six stepped Plan have been proposed for the energy-management. This model can be
effectively adopted step by step by small industries to achieve tangible results.
Step-1: Generating Awareness
Awareness on energy-management in an organization can be created by
explaining and defining various aspects of energy. Both management and employees
should understand and appreciate the benefits of energy conservation in qualitative as well
as quantitative terms [5]. Various tools like posters, graphs, slogans, questionnaires
and inter-firm comparison reports can be used for creating an effective environment for
better awareness in energy management [8]. Benefits of energy conservation to employers,
to employees, to society and to consumers of products must be cited separately for better
appreciation by all. Everyone should actively participate in energy management and like
TQM; the process should be treated as "TOTAL ENERGY MANAGEMENT"(TEM)
programme.

4. International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 – 6340(Print),
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Step-2: Energy Audit (Inspection)
Energy measurement involves a systematic selection of an approach and inputs -
outputs for an organisation. Several factors like nature of inputs and outputs of energy, the
complexity of operations, the period of study etc. affect measurement process [9]. Energy
measurement constitutes a vital part of Energy Audit" which serves to identify all
energy streams into a facility and to quantity energy use according to discreet functions.
This step identifies the costs of energy and where and how it is used. A base is created from
which results can be measured and further programmes can be developed.
Step-3: Energy Assessment
After measurement of inputs-outputs and costs of energy, existing performance levels
are analyzed. Energy wastes are identified and quantified for setting further modalities.
Energy measurement and evaluation creates a platform for setting realistic targets of energy
utilization and makes available several alternative options towards achieving the same.
Generally those options which meet the financial / techno-managerial criteria of the
companies are pursued to their implementation stage [8]. A rational energy evaluation imparts
credibility to the "Energy Audit" being carried out by the firm and this further helps in
providing sustainability to energy conservation programmes likely to be implemented.
Step 4: Energy Scheduling (Energy Conservation)
The evaluation and measurement steps complete the energy audit process and this must
be followed by some scheduled actions which are understood and supported by both
management and employees. Effective planning is a major determinant for the success of
improvement programmes and all these improvement programmes are modelled with some
targets or objectives to be achieved. Planning basically decides on nature, timing, costs and
action areas for different strategies to be adopted to improve energy utilization levels, keeping
in mind the existing organizational constraints [11]. This step must involve SWOT (strengths,
weaknesses, opportunities and threats) analysis of the organization, active workers'
participation and external expert support for deciding future energy conservation programmes.
Step 5: Energy Enhancement
Improvement of energy utilization relates to putting into action the various plans and
strategies to be adopted for improving conservation levels. These improvement plans can be
broken down into following objectives:
a) Improving efficiency ("Working right")
b) Improving effectiveness ("Doing right things")
c) Improving quality of work life
• For improving efficiency, abroad-based traditional industrial engineering approach is
always most acceptable. This involves auditing, process simplification, ‘work standard
development and use of technology [9].
• Effectiveness means achieving desired goals and for this objectives must be ;
Clearly stated.
Measureable.
Consistent with goals.
Timely.

5. International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 – 6340(Print),
ISSN 0976 – 6359(Online), Volume 5, Issue 10, October (2014), pp. 115-120 © IAEME
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Specific.
Reasonably obtainable.
Result oriented.
Improving quality of work life means maintaining management commitment to and
support of employees' involvement in the decision-making process [10]. This includes training
and development, recognition and sense of accomplishment, rewards and incentives, team
building for cause and safe physical environment. Energy improvement plans vary from
industry to industry and from unit to unit.
Step 6: Consistent Monitoring
This step involves reporting the success rate of various energy improvement
programmes being adopted. This is periodically done to check reliability and robustness of all
improvement programmes [12]. All plans need careful implementation and careful
implementation needs regular monitoring. The monitoring reflects achievements or failures
and hence serves as a feedback mechanism for the system. Some important practices for this
step are:-
• Goals and performance must be reported comparatively.
• Periodic energy reports are prepared to check utilization levels.
• Trend charts be prepared to evaluate past present performance.
• A consolidated report to be prepared summarizing significant dates and performance of
sector-executives.
• An inter-firm and intra-firm comparison to be carried out as far as possible [13].
4. CONCLUSIONS
In recent years, we have been facing "Energy Crisis" and this not only poses a threat
but is also a challenge to all nations. All fossil fuels will eventually be exhausted and world
is haunted by the specter of oil ravenous civilization. It is this fear which turns our attention
towards proper "Management of Energy" in all sectors, especially the industries which
account for using 60% of electricity generated in India. A lot of scope exists for conservation
of energy by using appropriate methods and better housekeeping "Energy Management" has
probably received better attention, mainly because of:
• Reasonably low cost of energy, as compared to other inputs to production systems.
• Ignorance on effective use of energy and its resultant benefits.
• Freedom of passing on higher costs of production to the consumers of industrial
goods and house hold items.
• Lack of maintenance policies, especially in small scale units.
• Availability of ample resources for energy generation in the past.
Industries must adopt energy regular auditing practices and conservation measures to
increase their productivity levels. Based on energy practices in some cluster industries in
Haryana and Punjab, a six-stepped plan has been proposed which when used will bring in
simplification, rationality and effective diagnosis in overall energy management programme
being adopted by an industry.

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ISSN 0976 – 6359(Online), Volume 5, Issue 10, October (2014), pp. 115-120 © IAEME
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