Energy Efficiency Electricity Natural Gas

What is an energy efficiency audit?

An energy audit is key to developing an energy management program. Although energy audits have various degrees of complexity and can vary widely from one organization to another, every audit typically involves data collection and review

  1. plant surveys and system measurements
  2. observation and review of operating practices
  3. data analysis

In short, the audit is designed to determine where, when, why and how energy is being used. This information can then be used to identify opportunities to improve efficiency, decrease energy costs and reduce greenhouse gas emissions to climate change. Energy audits can also verify the effectiveness of energy management opportunities (EMOs) after they have been implemented.

All energy-consuming equipment and systems were designed to meet a specific need or set of needs. This may be as simple as providing illumination or be far more complex, as in the case of an integrated processing plant.

Finding EMOs involves reducing the level of energy use while still meeting the original need or requirement.

The process of identifying EMOs begins at the point of end use where the need or requirement is met and works methodically back toward the point of energy purchase.

Match usage to requirement

The first and most important step in realizing savings opportunities is to match what is actually used to what is needed. The key consideration here is the duration of use and the magnitude of use. Questions that might be asked include the following:

What is being done?

Why is it being done?

What energy is being consumed?

What energy should be consumed?

Does the process equipment idle for significant periods of time?

Every manufacturing or industrial process presents opportunities for energy management.


Reuse                   Energy in water and air

Reduce                 Energy consumption

Repair                   Equipment / processes using excess energy

Replace                Equipment with more efficient

Retire                    Equipment that has reached the end of its useful life

However, for the unwary, energy management also has the potential to create operational problems.

The energy audit is a systematic assessment of current energy-use practices, from point of purchase to point of end-use. Just as a financial audit examines expenditures of money, the energy audit identifies how energy is handled and consumed,

  1. how and where energy enters the facility, department, system or piece of equipment
  2. where it goes and how it is used
  3. any variances between inputs and uses (not accounted for loss of energy)
  4. how it can be used more effectively or efficiently
  5. All energy-consuming equipment and systems were designed to meet a specific need or set of needs. This may be as simple as providing illumination or be far more complex, as in the case of an integrated processing plant.
  6. Finding EMOs involves reducing the level of energy use while still meeting the original need or requirement.
  7. The process of identifying EMOs begins at the point of end use where the need or requirement is met and works methodically back toward the point of energy purchase.

The steps in the method are as follows:

  1.  Verify/validate energy need/requirement.
  2. Electrical and thermal inventories can provide valuable insight into finding savings opportunities and determining their extent.  The use of a Sankey diagram can be used to “Detail Energy-Consuming Systems,” typical systems in facilities in terms of where energy losses occur and what can be done to minimize use.
  3. All energy-consuming equipment and systems were designed to meet a specific need or set of needs.
  4. Finding EMOs involves reducing the level of energy use while still meeting the original need or requirement.
  5. The process of identifying EMOs begins at the point of end use where the need or requirement is met and works methodically back toward the point of energy purchase.

Steps for an Energy Audit

  1. Conduct a condition visual survey of the facility

Assess the general level of repair, housekeeping and operational practices that have a bearing on energy efficiency and flag situations that warrant further assessment as the audit progresses.

  1. Establish a mandate for the Energy Audit define the objectives and expectations of the audit
  2. Establish an Energy Audit oversight committee who will be ultimately responsible for the implementation of the recommendations and assess the results to the projected savings.
  3. Establish a budget for conducting the Energy Audit
  4. Establish a Return on Investment criteria for modifications / replacement to existing equipment or processes
  5. Creation of a contract for the undertaking of the Energy Audit
  6. Undertake the measurement of current equipment Energy usage
  7. Assessment of the Energy Efficiency of equipment and processes
  8. Implementation of changes to equipment / processes
  9. Assess the results of implementing the Energy Saving program

Cost of an Energy Audit will include

  1.  Catalogue of all items within the scope of the audit
  2.  Determine manufactures energy consumption estimate for  catalogue items
  3. Determine actual energy usage / loss for all catalogue to compare with manufacturers estimate
  4. Analysis of energy costs from actual invoices
  5. Third party services for determination of compliance with regulatory requirements
  6. Third party services to provide specialized expertise for changes to process mythology
  7. Implementation of recommendations
    1. Equipment repair / replacement
    2. Equipment removal
    3. Additional energy saving equipment / processes
    4. Review of system after implementation of corrective measures

Audit Mandate, Scope and Methodology

  1. The audit mandate, scope and methodology should include a statement of the mandate, i.e. the goals and objectives of the audit a description of the audit scope in terms of the facilities and processes covered the methods used for information gathering and analysis the key sources of information (people), etc.
  2. Facility Description and Observations
  3. The description and observations of the facility should include a general description of the facility or the parts of it covered in the audit (size, purpose, configuration, etc.) observations on the general condition of the facility (from the Condition Survey) detailed cost and consumption information for electricity and fuels summary demand information summary load inventory data
  4. Energy audit is to identify opportunities to reduce energy consumption and/or energy costs incurred in the operation of a facility. Needless to say, the auditor must be conversant with the principles of energy and its use in its diverse forms by the wide variety of energy-consuming systems in an industrial facility.
  5. Energy is very simply defined as the ability to do work. Although “work” has a special technical definition, it can be thought of as the ability to do something useful. This might be to move a car along the road, light a light bulb, drive a pump, heat an oven, or cool a room with an air conditioner.
  6. Energy can take many different forms and do many different types of work. One very important law of nature, which guides the process of energy management, is that energy cannot be created or destroyed, only converted from one form to another.
  7. Energy Charges are determined by
    1. Demand Profile is the Energy Demand on the energy provider.    Energy providers charge for generation capacity to service the “maximum” demand by its customers at any time.  If the customer only has a “high” demand for a short period of time the charge is for that amount during the entire billing period (or longer.  If the demand is at a low level during the period the charge is only applicable on the “low” level.  Demand is not related to consumption.   There may be a minimum demand charge for a minimum demand load.
    2. Consumption Profile is the total Energy used regardless of when or how.  The Energy provider’s  charges are usually based on usage.
    3. Total Energy Charges will be the sum of Demand Charges, Consumption Charges and other “administration” charges.
    4. Chemical energy is the energy that helps to “glue” atoms together in clusters called molecules, or chemical compounds. Of special interest to us are substances such as natural gas, propane and oil that are capable of releasing some of that energy. When we burn these fuels, we unglue some of the atoms from each other, liberating the chemically bound energy that held them together. In the process, the chemical energy is changed to high-temperature heat energy, a form well suited to doing many different kinds of work.
    5. Thermal energy is created by the microscopic movement of atoms and molecules in everything around us. Thermal energy is often commonly referred to as heat. In fact, there are two types of thermal energy.
      1. “Sensible” energy , or sensible heat, is energy that jostles molecules and atoms in substances such as water. The more movement, the hotter the substance becomes. Sensible energy gets its name from the fact that we can sense it by touching the substance directly or indirectly with a thermometer. When we add heat to water in a kettle, we increase its temperature.
      2. “Latent” energy , or latent heat, is the energy that is needed to make a substance such as water (a liquid) change to a different form of the same substance such as water vapour (a gas). The change of form happens when enough sensible heat is added and the molecules move too fast to be connected together and eventually separate. It gets its name from the fact that it lies hidden, or latent, until the conditions are suitable for it to emerge.
  8. There are means of generating heat which are of interest in the Energy Audit
    1. Mechanical energy is the energy of physical movement, such as moving air or water, a ball being thrown or a person sanding a piece of wood. As with many forms of energy, mechanical energy eventually ends up being released or lost as thermal energy. For example, sandpaper applied to wood converts mechanical energy to heat.
    2. Electrical energy involves the movement of electric current through wires. Electrical energy is very useful because it can perform many functions. Ultimately, most electrical energy or electricity also ends up as thermal energy in the form of sensible heat. Some devices, such as electric heaters, convert the energy directly; other devices, such as motors, convert electricity to mechanical energy that eventually becomes heat. The trick to optimizing electricity use is to maximize the amount of work done by electricity before it is lost as heat. Typically, this also involves optimizing the use of mechanical energy

Scope of the Energy Audit

  1. Boiler  Plant Systems                                                                                                                                                      [  ]

[Temperature recording of all components, heat generation, distribution piping]

Steam and Condensate Systems                                                                                                                               [  ]

  1. Building Envelope and Solar Gain

Windows                                                                                                                                                             [  ]

[Recording interior and exterior temperature of glass, frame, adjacent wall,

presence of moisture, R-Factor , E-Value Glass, window orientation (N,E,S,W)]

Exterior Doors                                                                                                                                                   [  ]

[Recording interior and exterior temperature of panel, frame, adjacent wall, drafts,

presence of moisture, R-Factor, orientation (N,E,S,W)]

Ceilings                                                                                                                                                                 [  ]

[Recording temperature above and below of all areas to determine missing insulation]

Exterior Walls                                                                                                                                                    [  ]

[Recording interior and exterior temperature of all areas to determine missing insulation,

Identify void in wall structure, presence of moisture, R-Factor, orientation (N,E,S,W)]

Roofs                                                                                                                                                                    [  ]

[Recording temperature of surface and underside of roof, outside ambient temperature,

orientation (N,E,S,W), degree of slope, type of material, moisture compromised]

  1. Compressed Air Systems                                                                                                                                              [  ]

[Locate leaks in distribution system using gauges and smoke tracing]

[Record and compare temperature of compressor and motors to manufactures specifications]

  1. Communications (Telephone, Radio, Television, Security)                                                                             [  ]

[Record operating and environment temperatures, air circulation]

  1. Data Processing                                                                                                                                                                                [  ]

[Record operating and environment temperatures, air circulation]

  1. Domestic and Process Hot Water Systems                                                                                                            [  ]

[Record temperature and flow rate throughout system]

  1. Electrical Power Distribution                                                                                                                                       [  ]

[Record temperature of panel, distribution boxes, wiring, connections]

  1. Electric Motors                                                                                                                                                                  [  ]

[Record and compare to manufactures specifications RPM, HP, Amperage, Temperature]

  1. Fan and Air Circulation Systems                                                                                                                                 [  ]

[Record temperature of bearings and other mechanical devices, heat exchangers,

rate of air flow, voids in ductwork, compromised insulation(if present)]

  1. Heating, Ventilating and Air-Conditioning Systems

Heating                                                                                                                                                                [  ]

[Record temperature and velocity of air at source of heat]

Heat Distribution                                                                                                                                              [  ]

[Record temperature and velocity of air at distribution points]

Cooling Plant                                                                                                                                                      [  ]

[Record temperature and velocity of air at source of cooling]

[Record temperature and compare to manufactures specifications for

Compressor, evaporator and distribution system]

Cooling Distribution                                                                                                                                        [  ]

[Record temperature and velocity of air at distribution points]

[Record and compare temperature of compressor and evaporation unit to specifications]

  1. Lighting Systems                                                                                                                                                              [  ]

[Record temperature of lighting fixtures, type of bulb]

[Record illumination efficiency of lighting elements]

  1. Maintenance equipment (Vacuum, steam cleaning, welding, etc.             )                                                              [  ]

[Record operating temperatures]

  1. Material Handling (Fork trucks, tugs, cranes, charging systems)                                                                  [  ]

[Record operating temperatures of power units, charging system)

  1. Process Furnaces, Dryers and Kilns                                                                                                                          [  ]

[Record temperature of all equipment]

Process Heating                                                                                                                                                                [  ]

[Record temperature at source, distribution system and point of use]

  1. Refrigeration Systems                                                                                                                                                   [  ]

[Record temperature and compare to manufactures specifications for

[Compressor, evaporator and distribution system]

  1. Shipping, Receiving Storage Areas                                                                                                                            [  ]

[Record temperature in area plus monitor temperature at entries and exits,

asses effectiveness of air curtains, doors, door / draft control measures ]

As the survey is being conducted there may be many items identified that may require immediately repair

Other issues may have to be addressed as resources become available.

The order or sequence can be varied but generally

  1. Obvious housekeeping corrections requiring very limited capital or effort
  2. Demand power surcharges (if applicable) may have the quickest payback
  3. Items where there is potential for immediate mechanical breakdown
  4. Items with the largest energy inefficiencies are evident in terms of energy use
  5. Items with the potential for the highest Return On Investment

A systematic approach

  1. It is important for the Condition Survey to be comprehensive and systematic. Although the information obtained by the survey will be primarily qualitative, it can be useful to give a numerical score to each survey observation to help determine the scope and urgency of any corrective actions.
  2. Establish a rating system to reflect low / high energy efficiency. The rating indicates the urgency of corrective action.
  3. This score is then used to indicate the urgency of corrective action e.g.
    1. Immediate corrective action required
    2. Urgent corrective action required
    3. Corrective action required to due course
    4. No corrective action required

Target setting

  1. In  the context of an energy audit, a reduction target may have been established at the outset, with the audit being undertaken to find ways to achieve it. Alternatively, the information derived from the audit may provide a basis for setting a realistic target.
  2. Target setting is more of an art than a science, but there are techniques that can be used to ensure that targets are not trivial but are still achievable.
  3. Electrical Demand Profile provides considerable information about your facility’s operations. This time record of energy consumption shows electrical Profile Energy EMOs loads operating at any time and the aggregate demand represented by those loads. In Use Patterns addition, a demand profile can reveal loads that are operating when they don’t need to be and identify systems that are inappropriately sized. Because the cost of electricity is determined in part by the maximum demand drawn, reducing that demand can have a great impact on energy costs.

Infrared Thermal Imaging is an effective means of recording the readings of equipment under normal operating conditions

The instrument will provide for each subject

  1.  A visual image of the equipment
  2. A thermal images of the equipment with 80,000 temperature sensed locations
  3. Digitally report temperature variations with the image
  4. Record environment operation temperature
  5. The captured data can be viewed in real time
    1. Printed
    2. Emailed
    3. Transferred via Blue Tooth
    4. Stored for comparison to subsequent observations via memory card or memory stick
  6. The thermal image data report can be supplemented with information from other sources
    1. Manufacture Data

i.      Optimum operating temperature

ii.      Amperage

iii.      Class / type of equipment

  1. Observed or otherwise obtained

i.      Duty cycle (continuous, start / stop)

ii.      Hours of operation per period (month)

iii.      Amperage

iv.      Ambient temperature

v.      Adverse environment conditions


Analytical software can process the above data to prepare a report for each observed item

Equipment that may be Utilized to Compile a load inventory for Energy and Demand Charges

  1. Infrared Thermal Imaging
  2. Amperage meter

Reconciling the Inventory load with the actual Utility Bills

Determine costs, long term commitments for

  1. Electricity (fixed, consumption and demand charges)
  2. Natural Gas (fixed, consumption and demand charges)
  3. Fuel (oil, coal, propane, steam consumption and demand charges)

Energy Use EMOs

Depending on the size of the facility and the resources it may be possible to install metering – even temporarily – at various locations in the facility to generate a profile of electrical demand. Alternatively, the electrical utility may be able to provide an electrical demand profile or help to obtain it.

Although the demand profile is a measurement of electrical energy, it also provides information about the consumption of other forms of energy. T he demand profile provides an operational fingerprint, or energy signature, of a facility, and it is a key part of any energy audit. Other methods of profiling or data logging are also available

Instrumentation for Energy Auditing.

Facility demand profiles may be obtained by a number of methods, including periodic utility meter readings recording clip-on ammeter measurements basic and multi-channel recording power meters a facility energy management system a dedicated monitoring system

Although reading utility meter readings periodically is the cheapest and simplest method, the resulting data is limited. At the other end of the spectrum (a dedicated monitoring system), multi-channel recorders are expensive and complex to use, but they yield a wealth of information, from real power to power quality.

Analyzing the Demand Profile

The demand profile is the electrical fingerprint of a facility’s electrical consumption patterns. Key information can be obtained by reading or interpreting the profile. This A peak demand that is significantly higher than the remainder of the profile for a short amount of time affords an opportunity to reduce demand through scheduling.

A high night load in a facility without night operations presents an opportunity for energy savings through better manual or automatic control or possibly time clocks to shut down equipment that is not required to operate all night.

Loads that cycle on and off frequently during unoccupied periods – it may be possible to shut them down completely.  High demands during breaks in a production operation or insignificant drops at break times suggest that equipment idling may be costly.

Make sure that systems are not starting up before they are needed and shutting down after the need has passed. Even half an hour per day can save a significant amount if the load is high.

Peak demand periods at start-up times suggest an opportunity for staged start-up in order to avoid the peak. If the billed demand peak is not evident on a typical demand profile, this suggests that the load or loads that determine the demand may not be necessary (i.e. if they operate only once in a while). Consider scheduling or shedding these loads. Also check the billing history to see if the demand peak is consistent.

A large load that cycles on and off frequently may result in a higher peak demand and lower utilization efficiency than a smaller machine running continuously. Consider  using smaller staged units or machines. This strategy may also reduce maintenance because starting and stopping machines increases wear and tear.

Short cycling loads provide a clue to identifying opportunities for maintenance savings and failure prevention. In some cases, non-essential loads may be temporarily disconnected during peak periods. This practice is commonly referred to as peak shedding or peak shaving.

Savings Opportunities Through Power Factor Correction

Power factor should be considered when analyzing  electricity billings. A value for power factor may appear on your utility invoice; however, it is common to meter power factor when metering demand. Power factor values, when viewed alongside the demand profile, help to determine what actions have caused demand changes. Therefore, it is useful to consider savings opportunities related to power factor at this point.

The energy auditor’s essential tools for fully assessing a facility are the demand profile (i.e. the characterization of the electrical loads in terms of time of use and size) and the Inventory EMOs and the load inventory. These two tools are complementary in that they describe in Energy Use quantitative detail the systems that consume energy in a facility. The energy auditor needs to know where energy is being consumed, how much is consumed by each system, and how all the systems add up as an aggregate load. It is helpful to know how the total energy load is distributed among various systems.

The load inventory is a systematic way of collecting and organizing this kind of information. It is a useful tool for undertaking “what if ” assessments of proposed measures, i.e. estimating the impact of retrofits or other technological or operational change.

Often, the process of identifying categories of use allows waste to be easily identified, and this frequently leads to low-cost savings opportunities. Identifying high-consumption loads lets you consider the best savings opportunities first. Because the inventory also quantifies the demand (i.e. how fast electricity is used) associated with each load or group of loads.

Sources of funding for Electrical Energy Conservation Audit and Remediation

Hydro One and Local Electric Energy suppliers-Audit Funding

(for a complete outline –

The flowing is a summary of the above presentation:

Incentives to Evaluate Your Building’s Energy Performance

If you can’t measure it, you can’t manage it. Understand how your energy is being used

 The AUDIT FUNDING Program – Evaluate today’s energy use and identify tomorrow’s opportunities.

 Incentives to Help you Spot Energy-Saving Opportunities

 You are already doing a good job managing and maintaining your high performing building. Even though your building is running well, these AUDIT FUNDING incentives could help you achieve even greater efficiencies while reaching or even exceeding your business goals.

 An energy audit is the first step in fully understanding how energy is being used in your building. Only then can you begin to reduce operating costs and improve the performance of your building.

Business customers are eligible for incentives to complete energy audits assessing the potential for energy savings to be achieved through equipment replacement, operational practices, or participation in Demand Response initiatives and other building systems and envelopes projects.

 Participate and save

A comprehensive evaluation of your building’s energy performance will determine opportunities for improvement. These options for maximizing energy savings will form the basis of an action plan.

 The AUDIT FUNDING incentive is intended to cover up to 50% of the cost of an energy audit, based on requirements that take into account the size and complexity of the buildings.

We will work together to identify the best and most sustainable energy management program for your business.

 Participant incentives for this initiative are as follows.

For Eligible Building Owners: ELECTRICITY SURVEY AND ANALYSIS Up to $25,000 in Incentives Now Available

Conducting this survey and analysis is your first step. This financial analysis, or life cycle analysis, provides you with the data you need to fully consider the financial benefits of installing a variety of energy-efficient measures.


For buildings up to 30,000 sq. ft.:

The Incentive is $0.10 per sq. ft. up to a maximum of 50% of Electricity survey and Analysis costs, whichever is less.


For buildings larger than 30,000 sq. ft.:

The Incentive is $3,000 for the first 30,000 square feet and $0.05 per sq. ft. for each incremental sq. ft. up to a maximum of 50% of Electricity Survey and Analysis costs or up to $25,000, whichever is less.


DETAILED ANALYSIS OF CAPITAL INTENSIVE MODIFICATIONS  eligibility is for buildings with greater than 50,000 square feet


An Additional $10,000 in Incentives – Now Available

After the Electricity Survey and Analysis has been completed, this is your next step. Here the focus is on potential capital-intensive projects identified during the Electricity Survey and Analysis. Detailed field data combines with a more rigorous engineering analysis to provide detailed project cost and savings calculations (sufficient for major capital investment decisions). The incentive is $ 0.05 per sq. ft. up to a maximum of 50% of Detailed Analysis of Capital Intensive Modifications costs or up to an additional $10,000, whichever is less.


Electricity Survey and Analysis For Eligible Tenants:

Up to $7,500 in Incentives now available. Here the incentive pays for audits of lighting, office equipment and plug loads.

The incentive is $0.03 per sq. ft. up to a maximum of 50% of the Electricity Survey and Analysis for an eligible tenant costs or up to $7,500, whichever is less.

The energy audits must be completed by a third party with the following qualifications:

A professional engineer (PEng.), a certified engineering technologist (CET), a certified energy manager or a certified measurement and verification professional, who has at least three years of relevant experience evaluating energy systems in building or an engineer-in-training under the supervision of a PEng. or CET only if a qualified and experienced person as described above certifies and signs the Audit Report.

2010 Ontario Power Authority. All rights reserved. Official Marks of the Ontario Power Authority

Sources of funding for Electrical Energy Conservation Process and Systems

Hydro One and Local Electric Energy suppliers-Energy Process and Systems Funding

(for a complete outline go to)

The following is a summary of the above program

Enrolling in this program will help your business manage its energy usage and help Ontario meet its reduction targets. Every day, more and more Ontario businesses are uncovering the bottom-line benefits of energy efficiency. That is specially true of large industrial and commercial facilities, where bigger energy costs can easily translate into bigger opportunities to save.

The program is designed to help you:

  1. 1.       Study and identify your best opportunities to save energy along with energy costs.
  2. 2.       Modernize your key systems beyond energy efficiency to enhance reliability, productivity, and product quality
  3. 3.       Take charge of your energy with an on-site expert, so that your savings will continue to grow annually.
  4. 4.       Equip your team with accurate, up-to-the-minute data about your energy use, so that you can stay informed and responsive.
  5. 5.       Create a real, sustainable competitive advantage through energy management best practices.

PROCESS SYSTEMS upgrade will help you take control of the energy usage, consumption, and costs across your entire organization. We will provide you with support and assistance at every step of the way, from your application through implementation and beyond.

There are two complementary components to the program:

  1. 1.       Engineering Studies funding available to conduct Preliminary and Detailed Engineering Studies that will lead you to PROJECTS that will deliver Electricity Savings.
  2. 2.       Embedded Energy Manager You are provided the opportunity to access funding for the engagement of an on-site, full-time energy manager. Your energy manager’s role is to help you take complete control of your energy by monitoring your performance, by leading awareness programs, by finding small-but-powerful ways to save, or by spearheading large upgrade PROJECTS

 To be eligible, the energy manager must meet the following requirements:

Implement  0.3MW of peak demand savings and 0.3MW x Facility Load Factor x 8,760 hours in energy savings each year. Of this, 30% of savings must be achieved without third party incentives; be hired by your company; enroll in energy management-related training programs; develop an energy management plan and provide quarterly reporting; commit to implementing PROJECTS with a less than one year payback.

Monitoring and Targeting

 This initiative offers you funding for the installation of a Monitoring and Targeting System to help you understand your current energy consumption and further understand how your energy consumption might be reduced. Your facility energy manager, who regularly oversees energy usage will now  be able to use historical energy consumption performance to analyze and set targets.  Typically this gives the ability to identify and reduce variations in energy consumption as a result of operational variability, improving overall energy-efficiency by between 5 and 10%.

To be eligible, your company must meet the following requirements:

The employment of an Energy Manager, or a staff member, in an equivalent position to ensure the monitoring and targeting system is managed;

  1. 1.       Your facility must have a minimum annual electricity consumption of 15,000 MWh from the previous calendar year;
  2. 2.       Your facility must demonstrate, by the end of the second year of operation, 0.2 MW in peak demand savings and 0.2 MW x Facility Load Factor x 8,760 hours in energy savings;
  3. 3.       Your facility must commit to implementing PROJECTS with less than one-year payback period;
  4. 4.       Your facility must agree to provide annual reports of opportunities implemented as a result of the monitoring and targeting system, for a period of five years.

Hydro One is here to help

Hydro One has Key Account Managers and Roving Energy Managers available to support you in pursuing energy management opportunities. A Key Account Manager can support you in identifying how best to take advantage of the PROCESS & SYSTEMS upgrade program, including help with your incentive applications. While Key Account Managers are assigned to those customers with load over 5MW, Roving Energy Managers are available to assist all customers.

Eligible PROJECTS must be located in Ontario and connected to the Distribution System.

  1. 1.       PROJECTS must precede and Engineering Studies must be based on, a Detailed Engineering Study (not just a Preliminary Engineering Study) which is approved by the Technical Reviewer and Hydro One.
  2. 2.       PROJECTS must involve the installation of a savings measure that could include equipment productivity, product quality or yield.
  3. 3.       All PROJECTS must achieve an actual In-Service Date no later than the second anniversary of the date of the signed Agreement and such In-Service Date must have been achieved on or before December 31, 2014.
  4. 4.       PROJECTS require development of a measurement and verification plan for assessing performance of the project.
  5. 5.       A proposed MICRO PROJECT will be expected to generate at least 100MWh but less than 700MWh of Annualized Electricity Savings.
  6. 6.       A proposed PROJECT will be expected to generate at least 350MWh of Annualized Electricity Savings.

Usually, applications for capital funding must be supported by a PRELIMINARY or DETAILED engineering study. This is not only a requirement, but also a great opportunity to find hidden opportunities that you might not already be aware of.

Preliminary Engineering Study

This is a general assessment of a key process or single system, comparing the cost-effectiveness of the various upgrades available to you. Funding of up to $10,000 per study is available.

Detailed Engineering Study

This study provides you with all of the in-depth technical and financial information you need to build a solid business case for your PROJECT. Funding of up to $50,000 per study is available. Incentive amounts are based on the forecasted annualized electricity savings your project might deliver, using the lowest of:

$200 per MWh for annualized electricity savings, or 70% of the eligible project costs, or achieving a one-year simple payback . You can apply using one of two approaches to receiving incentives:

ADVANCED incentive PAYMENT OPTION: Payments are made during construction and must be supported by a letter of credit

DEFERRED incentive PAYMENT OPTION: Payments are made after PROJECT completion and after measurement and verification tests have proven the existence of forecasted energy savings.

Embedded Energy Managers are funded as follows: 80% of actual annual salary up to a maximum amount of $100,000 plus 80% of actual reasonable expenses incurred up to maximum amount of $8,000 per year.

Hydro One will provide funding toward 80% of actual eligible costs (less any third party contributions) up to a maximum of $75,000 per site to purchase, install and make operational  a monitoring and targeting system. Your company must contribute a minimum of 20% of the actual project cost.

Sources of funding for Energy Efficiency Conservation by Union Gas

Funding available for 2012 Commercial Energy Efficiency Incentives

(for a complete outline go to)

Summary of projects qualifying

Condensing Boiler

Energy Recovery Ventilators

Heat Recover Ventilators

Infrared Heaters

Condensing Make-up Air Units

Destratification Fans

Laundry Equipment with Ozone

Condensing Gas Water Heater

ENERGY STAR Dishwasher

Demand Control Kitchen Ventilation

Cooking Equipment

Engineering Feasibility Study

Steam Trap Survey

New and Retrofitted Equipment

Building Optimization

Demonstration of New Technology

Customer Education

For funding available for 2012 Industrial Energy Efficiency Incentives

(for a complete outline go to)

Summary of projects qualifying

Engineering Feasibility Study

Process Improvement Study

Steam Trap Survey

New Equipment

Operations & Maintenance

Integrated Energy Management Systems

Boiler Tune-ups


IRAC Plastic

Demonstration of New Technology

Customer Education

Infrared Heaters

Condensing Boilers

Find Program details and application forms at :

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