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THE CHALLENGE OF SUSTAINABLE ENERGY MANAGEMENT
                                                      MS Rawlins
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operational level due to a shared vision and understanding              •    lead to sustainable energy management;
around...
efficiency. The process must deliver information on why,       management process as well as the value addition
what needs...
2.3.4 Implementation and Progress Sign-Off                         2.4.1 Strategic Management Team:

Implementation and pr...
The contract management structure and process works           management and technology services to BP’s industrial and
be...
THE CHALLENGE OF SUSTAINABLE ENERGY MANAGEMENT
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THE CHALLENGE OF SUSTAINABLE ENERGY MANAGEMENT

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Transcript of "THE CHALLENGE OF SUSTAINABLE ENERGY MANAGEMENT"

  1. 1. THE CHALLENGE OF SUSTAINABLE ENERGY MANAGEMENT MS Rawlins Energy & Combustion Services, BP Energy Plus, South Africa ABSTRACT A long-term objective of energy management is motivated and skilled people together with informed and sustainability. Sustainability leads to long-term energy effective management. efficiency and emissions control. However, sustainable energy management is a challenge. This paper Since the development and implementation of effective highlights the success factors for achieving sustainable energy management systems and processes should be the energy management. These are demonstrated using a first step in achieving energy efficiency, this paper proven management framework implemented within addresses the success factors for sustainable energy major African industrial and mining organisations. management. This is demonstrated using an energy This framework encompasses a pathway to management framework that has proven success within implementation of energy management and the major African industrial and mining organisations. This subsequent energy efficiency improvements. Further, framework is shown schematically in Figure 1 and this implementation is driven together with the encompasses an implementation pathway that is controlled organisation’s strategic energy supplier using a contract strategically and operationally using an energy contract management process. This systematic and disciplined management process. This process is executed together approach makes it easier to be energy efficient than with the organisations strategic energy supplier. Further, energy inefficient. this is an integrated energy management process that is systematic and disciplined in its approach to inclusion of 1. INTRODUCTION the key success factors that lead to sustainable energy Sustainable energy management is a challenge. There are a ENERGY CONTRACT number of quick fixes that can lead to energy efficiency MANAGEMENT PROCESS improvements. These include capital projects, renegotiating energy tariffs and prices and improving housekeeping. The results can be cost savings in the order COMMITMENT of 5% to 10% [1]. However, unless there is sustainable energy management these savings are eroded over time. N ICA S & TIO UN E S Further, opportunities are lost for significant energy cost MM REN LEA savings, emissions reduction and productivity C O WA DER A improvements. Therefore, industrial and mining energy IMPLEMENTATION SHIP PATHWAY management needs to be initiated and implemented with long-term goals and objectives driving the process. Without these, sustainable energy management is not EM achievable and the resources applied for energy efficiency PO O N W ITI improvements are wasted. ER GN M CO EN RE T Global best practice for reduction of unit energy consumption in industrial processes tends to follow a sequence of focusing management activity within specific areas of the organisation. The foremost of these activities is developing information systems and processes for managing energy more effectively. This typically leads to management. better understanding of the requirements for equipment and process upgrades, then to adoption of new thermal Figure 1: Energy Management Framework processing technologies and finally to performing research and development on energy efficient processes. The One of the key findings that can be shared from operational realisation is that the further down the sequence, the higher experience with this energy management process is that real the capital cost and risk – where energy management is energy efficiency improvements come simply from doing typically the lowest cost lowest risk option. Technology on the job. Integrated activity within this defined management its own seldom results in continuous improvement of framework drives understanding, innovation and solutions. energy efficiency. Technology must be combined with That is, solutions come from doing. The energy management framework does not drive solutions from the boardroom. Rather it stimulates solution finding from the
  2. 2. operational level due to a shared vision and understanding • lead to sustainable energy management; around the value of energy management and continuous • provide the correct resources; energy improvement. It is for this reason that a disciplined • involve more people; approach to implementation of energy management is • achieve the maximum output for a given input; proposed using a defined framework. • support other activities and issues (e.g. quality control, maintenance, risk management, yield); 2. ENERGY MANAGEMENT FRAMEWORK • improve operational efficiency in areas that purely technical programmes cannot reach. The energy management framework encompasses four primary elements (see Figure 1). These elements are: The general approach is to make it easier to be energy efficient than energy inefficient. Integration requires that • Integration; the energy management team or energy manager performs • Inclusion of the key success factors in the design the role of coordinator and advisor and that integration is of the management process; entrenched in the implementation and operational plan. • An implementation pathway; Experience has shown that marginalised energy • A contract management process. management simply does not work! These are each briefly described in the sections that follow. 2.2. SUCCESS FACTORS 2.1. INTEGRATION There are a number of factors that are considered critical to the successful and sustainable energy management. These Integration is vital to the success of energy management are [1]: implementation and sustainability. Energy management and control cannot be the sole responsibility of an energy • Commitment – corporate and individual manager or other specialists. That is, energy management • Leadership – strategic and operational cannot be a marginal activity. There are a number of • Awareness – information; what you reasons for integrated activity. The first of these is do not understand you cannot organisational politics. Organisational politics is not a improve pathology; it is a fact of organisational life and therefore • Communication – energy management is not a needs to be accommodated by the energy management covert activity process. Another is that some people simply do not care • Empowerment – let the people that can effect about energy efficiency. This is since they may not be change get on with it! performance measured on energy efficiency improvements, • Recognition - recognise people’s efforts they may not have been exposed to energy efficiency theory and practice or understand the benefits of energy Commitment can be considered the most important factor management (which go way beyond simply defining supporting sustainable energy management. Unless there is savings in terms of fuel or electricity consumption substantial commitment from both the corporate and site reduction). Yet another is that energy efficiency needs to senior management, there is no basis for a site or plant to demonstrate its value addition to the core objectives of the implement energy management as defined here. A organisation. For this value demonstration, the energy wallpaper (or glossy brochure) commitment is not enough. manager needs to co-opt the assistance of a number of There needs to be an identified corporate endorser or site departments and specialists in the organisation. sponsor that authorises investment and resource allocation. There are going to be a number of trade-offs and relaxation Integrated energy management involves distributing the of investment rules/criteria during the implementation work and incorporating it into all operational areas, for phases. The endorser/sponsor can guide these trade-offs to example: influence change. • including energy efficient practices into Leadership typically takes on two forms – strategic and production procedures; operational. The site energy management sponsor provides • providing energy training at many levels and the vision and corporate objectives. The operational disciplines; leadership is provided by individuals in the sub-teams. • making energy policy part of the operational Here the leadership focuses on communicating roles and policy; objectives of the team and motivating individuals into • including energy costs performance in the action. operational cost reports; • having a common energy performance reporting Communication and awareness are success factors in that platform. there is no point in operating energy management as a covert activity. The principle outcome of energy An integrated energy management program will: management is to change operational behaviour or identify/sustain behaviour that leads to improved energy
  3. 3. efficiency. The process must deliver information on why, management process as well as the value addition what needs to be done, the progress and successes. Often, opportunities that exist. people simply need to understand what the issues are to get the ideas rolling. 2.3.2 Monitoring and Targeting (M&T) Implementation Workshops Experience has shown that empowered and rewarded people get things done. Once the operational staff • Process modelling and understanding understand that they are fully responsible for energy efficiency and that they are supported by a wide range of people in the organisation to effect energy efficiency COMMIT improvements, they tend to excel in their efforts. Once they realise that they are empowered and rewarded to suggest/implement changes to work procedures within and outside their own circle of influence, results start to gain momentum and sustainability due to ownership of UNDERSTAND solutions. This is the bottom up principle of continuous improvement. Now that the need for integration and the success factors PLAN have been described, the implementation pathway and contract management process are summarised with reference to these. IMPLEMENT 2.3. IMPLEMENTATION PATHWAY The implementation pathway takes the form of a number of cross-functional workshops. These workshops have clearly MONITOR & defined objectives and outcomes. The workshops are CONTROL structured to deliver results via a five-step process of commitment, understanding, planning, implementation and progress monitoring and control. This five-step implementation process is shown in Figure 2. Note that the process is considered a continuous process and is repeated • Logging and data acquisition systems for each proposed energy efficiency improvement idea and • Reporting system & information types solution. The key implementation workshops are typically • Real-time energy control structured as follows: Figure 2: Five-step Implementation Pathway 2.3.1 Initial Workshops These workshops define what needs to be measured, how (Get Commitment and Understand Activities) the measurement is to be accomplished, how the measurement is to be verified and how the process data is • Review of energy and environmental management to be converted into meaningful information. Further, a principles and the management standardised and integrated performance reporting system framework/processes also needs to be defined • Agree on service levels (internal and external) • Establish a monitoring and targeting (M&T) 2.3.3 Target Setting Workshops project team and their responsibilities and commitments • Define and estimate savings/improvements • Formulate or review energy policy (production • Production energy indexing focused) • Energy target setting • Identify organisational aspects affecting energy • Define action strategies and process control management improvements • Establish scope and priorities • Define performance review process • Review/audit plant operational and energy • Development of energy efficiency promotion practice campaign and communication channels • Review metering, instrumentation, logging and data acquisition systems and processes These workshops are core to actual energy efficiency improvement. They tend to be technical and/or production The key feature of these workshops is to obtain senior process knowledge focused. The deliverables of these management understanding and commitment to the energy workshops are the details of the machine, control or operational process changes required.
  4. 4. 2.3.4 Implementation and Progress Sign-Off 2.4.1 Strategic Management Team: Implementation and progress sign-off is required to ensure • Ensure that the energy management activities add that manageable risks have been reviewed, senior to the core organizational values; management commitment has been secured and the • Communicate vision and priorities; benefits have been reviewed and defined. This tends to be • Initiate agreed value improvement projects; a formal (or contractual) process and is managed via an • Ensure buy-in from senior management; energy contract management process. The basics of the • Authorise funds and resources; management structure and roles are summarised in the • Empower the sponsor and the site project team; section that follows. • Develop high level business and change vision; • Approve contract amendments (if required); 2.4. CONTRACT MANAGEMENT STRUCTURE • Provide approval of final decisions. AND PROCESS There is no requirement for the strategic management team The contract management process is driven by three teams, to be the source of ideas and plans for energy efficiency namely, the strategic management team, the site or plant improvements. These will come packaged and reviewed project team and the operational team. Figure 3 shows the from the site project team. basic structure of these contract management teams with the typical membership of each team [2]. 2.4.2 Site/Plant Project Team: Strategic Management Team Company Director/ GM • Ensure that the implementation pathway is Quarterly Financial/Procurement Manager planned and executed; Review Energy Manager (external) • Define the deliverables required from each Energy Supplier Representative (external) workshop or meeting; Site/Plant Project Team • Review and clarify performance improvement Monthly Senior Operations Manager ideas; Review Engineering/Technical Manager • Plan and secure required resources; Project Manager Energy Manager (external) • Ensure progress is maintained to plan; • Maintain purpose; • Keep the operational team motivated; Operational Team Weekly • Agree on key performance indicators and Operations Manager Review Operations Team deliverables; M&T Team • Ensure that success is communicated to the wider audience. Figure 3: Energy Contract Management Teams The senior operations manager on this team should be the Note that the membership in each team is organisation and owner of the energy costs. This builds in sustained site dependent. However, the strategic management team motivation and resolve. must include a director or the general manager of the organisation. Experience has also shown success within 2.4.3 Operational Team: large corporations by having the strategic energy supplier drive the process and support the delivery of the critical • Execute implementation plans and required outcomes. deliverables; • Resolve day-to-day operational issues and An important feature to note is that the teams are distinctly exceptions; defined in terms of their roles and responsibilities – even • Ensure key performance indicators are met; though they may share the same individuals as members. • Identify improvement opportunities; By splitting the roles and responsibilities into three teams, • Test historical operational assumptions. the need for cross-functionality is addressed. Further, the structure also accommodates the fact that an energy The operational team gets the job done. Through their management process needs ideas people, workers and activities (measurement, verification, analysis, reporting, supporters. Fundamentally, the structure shares the energy and process control change experimentation) many management load. improvement ideas come to light and assumptions are tested. Training in energy and thermodynamic principles is The roles and responsibilities of each team are, by example, important to the successful execution of their tasks in terms as follows: of energy efficiency improvement. It can be amazing to see how swiftly improvement progresses once the operational team understands the fundamentals of how and why the machine or manufacturing process works.
  5. 5. The contract management structure and process works management and technology services to BP’s industrial and because there is continual review within an integrated mining customers in Southern Africa under the BP Energy management framework that directly addresses the critical Plus program. success factors. Presenter: The paper is presented by Mark Rawlins. 2.5 Housing of the Energy Management Framework There is no need to build a new management structure to house the energy management framework. In fact, it is highly beneficial not to replicate existing management structures. That is, attempt firstly to make a home for energy management within the existing quality management or continuous improvement management systems and processes. This will restrain attempts to marginalise the energy management process. 3. CONCLUSION A number of key factors that limit or prevent sustainable energy management and thus sustainable energy efficiency have been highlighted. The long-term goal of sustainable energy management is a major challenge unless these factors are addressed and managed using a systematic management process. Therefore, an energy management framework has been described that addresses the primary requirements for sustainable energy management, namely, integration, inclusion of the key success factors in the design of the management process, an implementation pathway, and a contract management process. The energy management framework and associated processes has proven success within major industrial and mining organisations in Southern Africa. This is principally due to the energy management process as defined here being driven by the inclusion of the strategic energy supplier. 4. REFERENCES [1] ETSU: “Maintaining the momentum: Sustaining Energy Management”, Energy Efficiency Best Practice Program, Guide No.251, Crown, UK, 1999. [2] Acknowledgement to BP Global Strategic Accounts and BP Energy Plus Core Offer Management, South Africa, 2006. 5. AUTHOR Principal Author: Mark Rawlins holds a Doctors Degree in Technology (Mechanical Engineering) from the Durban University of Technology. His speciality is energy management and the modelling of thermo- mechanical processes using Neural Networks. He is presently the Managing Director of Energy & Combustion Services (Pty) Ltd, the core activities of which encompass the provision of energy

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