UTM SUSTAINABLE ENERGY MANAGEMENT (SEM) PROGRAM– Part 1Lessons Learnt on UTM Transformation to SEM

Zainuddin Abd Manan, Dean,Faculty of Chemical Enginering, UTM

Masilah Bandi (Energy Manager), Ahmad Khairul Nizam (Energy Manager)and Wahid Omar (Director)Office of Asset and Development, UTM

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ASEAN Energy Management Scheme (AEMAS) Conference, Kuala Lumpur, 19 July 2011

Overall Contents of This Session Part 1: General Lessons Learnt in Energy Management

Transformation – Prof Dr Zainuddin Abdul Manan (20 minutes)

Part2: Implementation of Sustainable Energy Management System - The Case of Universiti Teknologi Malaysia. Masilah Bandi, Ahmad Khairul Nizam , Prof Dr Wahid (20 minutes)

UTM In-House Products (10 minutes) Online Energy Billing and Monitoring System - AK Optimal Audit Software for Macro and Technical

Level Energy Management – Prof Zain

Contents: Part 1 Lesson #1. Old Habits Die Hard. Break that Pattern!

Lesson #2. Start by Building People

Lesson #3. Embrace Open-Innovation

Lesson #4. Lock Energy Management EM Into Your System

Sustainable Energy Management: The Way Forward

Concluding remarks

• Almost 20 years doing energy audit• Well-equipped audit team• One of the most extensive R & D & C• Implemented performance contracting• Conducted extensive training & awareness

The Case of UTM

● Faculty of Petroleum and Renewable Energy, Electrical, Chemical, Mechanical, Physics, Sciences and Built Environment

● Research Alliance on Energy, Sustainability● Institute Sultan Iskandar

● Centre for Electrical Energy

● Process Systems Engineering Centre

● Gas Technology Centre

● More than 10 specialised research groups

● Facility Maintenance Unit – in-house EM initiatives

● >300 researchers/scientists in energy-related R & D, Consultancy, commercialisation, publications, technology transfer

● Ample lab facilities and equipment

Energy R & D & C Infrastructure

More than 15 years!

Emphasis on technical solution –technical energy audit

“Square One”Typical challenges for many

organisations …

1. Cause of the EM “Roller Coaster”?2. How to break this pattern?

a GM once asked:Does EA really saves?

Does anyone ever monitor these savings?

Energy Management MatrixEnergy Policy Organization Motivation Information System Marketing Investment

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Energy policy, action plan and regular

review, have commitment of top

management as part of an environmental

strategy

Energy management has been fully integrated into management structure.

Clear delegation of responsibility for energy

consumption

Formal and informal channels of

communication regularly exploited by energy manager and energy staff at

all levels

Comprehensive system sets targets, monitors

consumption, identified faults, quantifies

savings and provides budget tracking

Marketing the value of energy efficiency and the performance of

energy management both within and outside

the organization

Positive discrimination in favor of ‘green’

schemes with detailed investment appraisal of

all new build and refurbishment opportunities

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Formal energy policy, but no active

commitment from top management

Energy manager accountable to energy

committee representing all users, chaired by a member

of the managing board

Energy committee used as main

channel together with direct contact with major users

M & T reports for individual premises

based on sub-metering, but savings not

reported effectively to users

Programme of staff awareness and regular

publicity campaigns

Some payback criteria employed as for all other investment

2

Unadopted energy policy set by energy manager or senior

department manager

Energy manager in post reporting to ad-hoc committee, but line

management and authority are unclear

Contact with major users through ad-hoc

committee chaired by senior

department manager

Monitoring and targeting reports based on supply meter data. Energy unit has ad-hoc involvement in budget

setting

Some ad-hoc staff awareness training

Investment using short term payback criteria

only

1 An unwritten set of guidelines

Energy management is the part-time responsibility of someone with only limited

authority or influence

Informal contacts between engineer

and a few users

Cost reporting based on invoice data. Engineer complies reports for internal use within

technical department

Informal contacts used to promote energy

efficiency

Only low cost measures taken

0 No explicit policy

No energy management or any formal delegation of responsibility for energy

consumption

No contact with users

No information system. No accounting for

energy consumption

No promotion of energy efficiency

No investment in increasing energy

efficiency in premises

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Most Companies focus on Energy Conservation Measures (ECM)

(Technical Audit)!!!

Doing the same thing (over again) and expecting

different results

Definition: Madness is..?

It’s Time for Transformation!

Time to Break That Patterns!!!

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Technical Solution/

Energy Audit

Energy Manager

tip of the iceberg

Systems & Policy

Energy Committee And Team

Top ManagementCommitment

Plan and Implementation

Systems Audit

Control &Monitoring

Training and Awareness

People System

Lesson #1. Energy Audit (Technical) is the

“Tip of the Iceberg”

Lesson #2. Start by Building People

Where and How to Start?

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Technical Solution/

Energy Audit

Energy Manager

tip of the iceberg

Systems & Policy

Energy Committee And Team

Top ManagementCommitment

Plan and Implementation

Systems Audit

Control &Monitoring

Training and Awareness

People System

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The Japanese experience

0

5

10

15

20

25

1 2

En

erg

y co

nse

rva

tion

pro

gre

ss, %

Large InvestmentEffect : 5%

Medium InvestmentEffect : 7%

Small Investment*Effect : 11%

* Investment on People & EM Support System• Change of attitude/habits• Caters for no cost and low costs

Enhanced Management

Facilities &Process change

Management

Inspected Tech

New Tech

Year

Accelerated Energy Conservation Scenario

EM Work ProcedureToolsResponsibilitiesEnergy Management Work Procedures (EM-

WP)

A. Assign Energy Manager Executive Board

B. Set up EM CommitteeExecutive Board and Energy Manager

C. Evaluate EM Status

E. Set or Revise ET&P

Energy Management Matrix, Energy Efficiency Index

Executive Board and Energy Management Committee

Executive Board and Energy Management Committee

D. Set up or Review EM Components

Energy Efficiency Index, Working manual and tools

Executive Board and Energy Management Committee

Energy Management Committee

F. Assign saving target to EACs

G G H J

People First!

EM Committee (Sample)

15

General Manager

Marketing Manager

Finance Manager

HR Manager

Energy Manager

Plant Manager

Lesson 2.1. EM is not the monopoly of the “Techies” !!

Lesson #3. Embrace “Open Innovation”

Global Challenges and Pressure for Open Innovation

Innovation through Collaborative

R & D; partnership

Tough financial climate

Pressure for open

innovation

*Open Innovation: Open Innovation: Researching a New Paradigm (Oxford, 2006) by Henry Chesbrough, professor and executive director at the Center for Open Innovation at UC Berkeley

Source: David Brown, IChemE President

Super-competitive world (e.g. More challenging

to commercialise, secure markets)

• Mass activity• Joint authorship• Knowledge by

interactions• Networked companies

OEM - 19

InternationalCooperationon EM for ASEAN

TrainingService

EnergyAudit

InformationService Advisory

Service

“ASEAN EnergyManagement System”

Campaign/Award System Coordination

ASEAN EM Award System• PurposeCollect and DisseminateInformation of Best Practices• MeritBenchmarking

Source: Asean Centre for Energy (ACE)

Country Number of Wins % Wins

Thailand 10 47.6

Philippines 4 19.0

Malaysia 2 9.5

Indonesia 2 9.5

Vietnam 1 4.8

Cambodia 1 4.8

Brunei 1 4.8

Winners of ASEAN Energy Award

(as of 2010)

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Renewable & Sustainable Energy: IF 4.842; Published in the USA, 2010

Complete Proposal for a Malaysian Energy Award

Normal buildings(Kuala Lumpur)

LEO building(Putrajaya)

GEO building(Bangi)

CostsEnergy IndexkWh/m2

~ 2,900 RM/m2

3,197 RM/m2

3,499 RM/m2

(Without BIPV )

4,210 RM/m2

( with BIPV)

250 - 300

100

34

0

+ 5 - 10%

+ 9%

+ 20%

Winner of A

SEAN

Energy-Efficient

Building Award!

Low Energy Offic

e

(LEO)

Winner of A

SEAN

Energy-Efficient

Building Award!

Green Energy Offic

e

(GEO)

Copyright UTM-PROSPECT-PTM Outlook on Energy Management OEM - 23

Recognized Projects ASEAN Energy Awards

Winners in Energy Management Category

Semasa Sentral Sdn Bhd (2007), KL Sentral2nd Runner-up – Energy Management in Buildings Category

Ikea Handel Sdn Bhd (2008)2nd Runner-up – Energy Management in Buildings Category

Lesson #4. Lock Energy Sustainable Management System (SEM) into your

company’s work procedure

Energy Management Work ProcedureToolsResponsibilitiesEnergy Management Working Procedures (EM-

WP)

A. Assign Energy Manager Executive Board

B. Set up EM CommitteeExecutive Board and Energy Manager

C. Evaluate EM Status

E. Set or Revise ET&P

Energy Management Matrix, Energy Efficiency Index

Executive Board and Energy Management Committee

Executive Board and Energy Management Committee

D. Set up or Review EM Components

Energy Efficiency Index, Working manual and tools

Executive Board and Energy Management Committee

Energy Management Committee

F. Assign saving target to EACs

G G H J

ToolsResponsibilitiesEnergy Management Working Procedures (EM-WP)

Recommended working

procedures for each EAC,

Operational Guideline

(OG),

Process Mapping (PM),

Work Instruction (WI),

Log Sheet (LS) and

Calculation Sheet (CS)

Energy Accounting Centres

Energy Management Committee and Energy Accounting Centres

F E E C

No measureG. EACs identify

measures to meet the assigned

target

Disapproved

Approved

Selected measures

H. Present measures, budget, planning to

Executive Board

I J

Energy Management Work Procedure

Technical Energy Audit

Lesson #4.1. EM is NOT About Introducing an Entirely New

Management System

Shared

Elements

Relevant

ISO 9000: 2000

Clauses

Relevant

ISO 14000: 1996

Clauses

Energy Management

Contents

1 Top Management

Commitment

5.1 Management Commitment

5.4 Planning

4.4.1 Structure and

Responsibility

4.3 Planning

4.6 Management Review

Top management must be supportive to

energy management and show

commitment.

2 Establishment of

System and Policy 5.3 Quality Policy

4.2 Environmental Policy

4.3.4 Environmental

Management Programme

Establishment of Energy management

System, Policy and Target reductions and

improvements.

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Establishment of

Responsible

Departments or

Committees

5.5 Responsible, authority and

communication

5.5.1 Responsibility and Authority

4.4.1 Structure

Responsibility

Energy management Team/ Committee

and appointment of energy manager and

the energy managament team.

4 Assessment and

Data Validation

8.2 Monitoring and Measurements

8.4 Analysis of Data

4.5.1 Monitoring and

Measurement Assessment of data, Energy Audits.

EMS synergy with ISO 9000 / 14000 Principles

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Implementation of

Corrective and

Preventive Action

8.5.2 Corrective Action

8.5.3 Preventive Action

4.5.2 Nonconformance,

Corrective and Preventive

Action

Implementation of Energy Saving

Measures and Project

6 Monitoring and

Control

8.2 Monitoring and Measurement

8.2.3 Monitoring and Measurement

of Processes

8.2.4 Monitoring and Measuring of

Product

8.5 Improvement

8.5.1 Continual Improvement

4.5.1 Monitoring and

Measurement

Metering, Monitoring and Targeting for

continuous improvement activity

(benchmarking)

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Training and

Awareness

Programme

6.2.2 Competence, awareness and

training

4.4.2 Training, Awareness

and Competence

Energy Efficiency Training and

Awareness Program for managers, finance

executives, engineers and operators.

29 EMS synergy with

ISO 9000 / 14000 Principles

AEMAS and ISO 50001

Corporate energy policy

Energy Management system in place and documented

Trained and certified energy managers

Demonstration of budget spending

Demonstration of EE measures implementation

Documented improvement of EEI

ISO 50001(Global) AEMAS (Regional)

Budget management

Motivation (Organisational Awareness)

Energy Management System in place and documented

Real EE improvement; Energy Management System is sustainable

AEMAS = ASEAN Energy Managers Accreditation Scheme

ISO is about System Documentation, AEMAS is about Documentation &

Sustainable Implementation

..with Sustainable Energy Management System (SEM)

InnovationsLead to continuousSavings

SEMLocksSavings

SEM, The Way Forward

Holistic System to Sustainably Manage Energy • Comply with organizational objective/goal

• Involve all staff in the organization

• Continuously develop organization &staff

knowledge

• Create the continuous improvement process

• Integrate with standard working procedures

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• Systematic and holistic energy cost management• Reducing operation and maintenance costs• Increasing staff awareness on energy conservation and

waste minimization• Developing organization and staff knowledge• Setting up energy target & plan• Setting up Measurement & Verification (M&V)

procedures• Preparing energy reporting system• Supporting other quality systems

Benefits of SEM

Concluding Remarks To transform, Break Old Patterns! Move from

technical audit to holistic implementation of SEM Start at the heart of the organisation - People Embrace Open-Innovation to continuously

improve SEM can be seamlessly locked into an

Organisation’s work procedure SEM benefits the people, organisation, society,

nation and environment

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Thank you