Energy Audit is a preliminary activity towards instituting energy efficiency programs in an establishment. It consists of activities that seek to identify conservation opportunities preliminary to the development of an energy savings program. An energy audit identifies where energy is being consumed and assesses energy saving opportunities. Energy audit report establishes the needs for plant metering & monitoring, enabling the plant manager to institutionalize the practice. Energy audit action plan lists the steps and sets the preliminary budget for the energy management program. An energy audit is usually one of the first steps in an energy management programme. An energy audit is an inspection, survey and analysis of energy flows in a building, process or system with the objective of understanding the energy dynamics of the system under study.