Principles, Importance and Role of Energy Management

Energy Management

“The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions”

OR “The strategy of adjusting and optimizing

energy, using systems and procedures so as to reduce energy requirements per unit of output”

Principles Of Energy Management

Can be summed as,

Eliminating unnecessary energy use

Improving efficiency of energy use

Buying energy at lower cost

Adjusting operations to allow purchasing energy at lower prices

Principles

Never ending process and goes on throughout the life of an organization

No one can claim that energy management process has been completed, It’s an on going process and it never ends

Rising energy costs have again made energy management a priority for facilities managers

“New” approaches to energy management

Four basic steps of Energy Management:

1. Identify All opportunities

2. Prioritize activities in the action plan

3. Implement action plan by completing defined activities

4. Make efforts to hold on to action plan and activities

Four important links in the energy management process

Energy Manager

Energy Audit

Energy Auditor

Management

Important links

Energy Manager plans, regulates and monitors energy use in an

organization or facility

Aim to improve energy efficiency by evaluating energy use and implementing new policies and changes where necessary

Does not wait for action to happen and searches for all possible opportunities

Keep educating himself about the ways and methods to reduce the energy

“Energy audit is a systematic study or survey to identify how energy is being used in a building or plant, and identifies energy savings opportunities.”

Definition : “The verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption”.

Energy Audit

Held in the foundation on which energy management process exists

Improper energy audit not covering all the aspects of energy usages will never results in sound energy management

Has to be very sound both technically and commercially

Should be having rich experience in working of the plants and equipment

His observations has to be comprehensive and not just limited to select few

Energy Auditor

Management

Have to take a call over which procedure or action plan has to be implemented

Although Energy Auditor is expected to weigh pros and cons about any proposed measure suggested for implementation but role of management in ensuring that proper budgetary support and framework is provided, is of paramount importance.

Without knowing how, when and where energy is used, there is no way to gauge the relative importance of energy management projects. Identifying and tracking energy use patterns is the first step in any energy program.

More energy savings may be obtained by simply controlling a system's use (e.g., lighting) than by installing more efficient components (e.g., T-8 lamps).

Most successful energy management programs are found in the best managed and maintained facilities, not in those with the greatest quantity of technological equipment

Good maintenance practices and good energy management go hand in hand. Some of the highest rates of return on energy conservation are generated simply by performing maintenance.

Preventive maintenance is still critical, and reactive maintenance (waiting for a crisis to occur) is still foolish, despite funding limitations. It is easy to ignore preventive maintenance when systems are new, calibrations are precise, seals are tight, and heat-exchanger surfaces are clean. As systems age, these and other items need care.

Serve different purposes

One cannot be substituted for the other

For example, cleaning light-fixture lenses and re lamping them is good maintenance; installing more efficient lamps and ballasts is good energy management. These distinctions must be remembered when budgets are being prepared.

Maintenance Vs. Energy Management

Importance Of Energy Management

Importance of Energy Management

The primary objective of energy management is to achieve and maintain optimum energy procurement and utilization throughout the organization which may help in minimizing energy costs and justifying environmental effects

In fact, energy management is widely acknowledged as the best solution for direct and immediate reduction of energy consumption

Managing and reducing energy consumption not only saves money but also helps in mitigating climate change and enhancing corporate reputation

Energy should be regarded as a business cost, like raw material or labor

Substantial reduction in energy bills

• Why reduction and control of energy usage is vital for an organization??

1. Reduces costs: The most convincing reason for saving energy Save up to 20% on fuel cost by managing energy use

2. Reduce risk: Helps to reduce risk of energy price fluctuations and

supply shortages

3. Reduces undesirable environmental effects :

Reduces carbon emissions and undesirable environmental effects

Carbon emissions from energy use dominate the total greenhouse gas emissions of most organizations

Reducing carbon footprint helps build a ‘green’ image thereby generating good business opportunities

Sound energy management - integral part of carbon management, helps organizations in effective overall environmental management

Energy management creates a better workplace environment for employees by improving working conditions.

Can influence supply chains by preferring suppliers who adopt environment management practices

Achieve stronger market position by demonstrating ‘green’ credentials

Improves competitive advantage as most consumers prefer to source from socially responsible businesses.

Other Significant Advantages

Role Of Energy Management

Some important roles and responsibilities of Energy Management Cell

Prepare an annual activity plan and present to management concerning financially attractive investments to reduce energy costs

Establish an energy conservation cell within the firm with management's consent about the mandate and task of the cell

Initiate activities to improve monitoring and process control to reduce energy costs

Analyze equipment performance with respect to energy efficiency

Ensure proper functioning and calibration of instrumentation required to assess level of energy consumption directly or indirectly.

Prepare information material and conduct internal workshops about the topic for other staff