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Article · Compliance

Understanding the Mandatory Energy Audit: who needs it and what it covers

Designated consumers must have energy audits conducted by an Accredited Energy Auditor. What that means in practice for scope, measurement and reporting.

The statutory basis

Under the Energy Conservation Act framework administered by the Bureau of Energy Efficiency, notified designated consumers in energy-intensive sectors are required to have energy audits conducted by an Accredited Energy Auditor at prescribed intervals.

The audit is not a formality. It establishes plant energy accounting, specific energy consumption at section level and a documented set of energy conservation measures with investment and savings figures.

What a mandatory energy audit should contain

  • Plant-wide energy accounting and energy balance
  • Section-level and product-level specific energy consumption
  • Measured performance assessment of major energy-consuming equipment
  • Benchmarking against applicable standards and sector best practice
  • Energy conservation measures with investment, annual saving and payback
  • Recommendations for monitoring and continued performance improvement

Common gaps we find

  • Energy accounting that does not close because sub-metering is incomplete
  • SEC computed on inconsistent production or calorific value basis
  • Equipment performance assumed from nameplate rather than measured
  • Recommendations without an investment number, so they never get funded