Energy audit is similar to a financial audit: it tells you where and how the energy is being consumed. However, it also goes further to tell you how efficiently or waste fully energy is being Utilized and what places. Energy Audit specifies an area of cost saving by identifying energy Intensive areas and adopting appropriate energy conservation measures through cost-benefit Analysis. It gives an opportunity to utilize energy in a more effective manner. The energy in form of electricity and heat (fuel use) is analyzed to recommend short and long term strategy as per the company's budget and needs. We can also benchmark the energy use as per the national and international norms wherever possible.
Energy is one of the top cost items in any industry (other being materials and labor) as well as a drain on natural resources and the environment so energy savings provides a double dividend. The first dividend is to the company in terms of reduced electricity bills and money saved. The second dividend is to the society in terms of reduced energy requirements and hence reduced pollution or climate change impacts. Indeed, to incentivize individual industries to opt for energy savings measures (in addition to the obvious monetary savings). the carbon trading mechanism provides additional incentive.