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

Principles 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

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

Important links Four important links in the energy management process Energy Manager Energy Audit Energy Auditor Management

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 “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”.

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

Energy Auditor 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

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 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.

Maintenance Vs. Energy Management 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.

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

Other Significant Advantages 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.

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