Introduction to energy management system


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Introduction to energy management system

  1. 1. Seminar onEfficient Management of Electrical Energy Regulations 2008ENERGY MANAGEMENT SYSTEM (EMS): DEVELOPMENT AND IMPLEMENTATION Zaini Abdul Wahab ENERGY COMMISSION 24th November 2010
  2. 2. THE AIM• For organizations to establish the systems and processes required to improve energy performance, including energy efficiency and intensity which will contribute to reduction of costs through systematic means in energy management in all types of organization
  3. 3. Sustainable Energy Management• The process of managing the energy use in the organization to ensure that energy has been efficiently use by adopting energy management system to achieve desired results and for continual improvement• Covers all aspects of energy and involving the people and equipment in the daily operation of the plant
  4. 4. Energy Management All activities to ensure efficient use of energy in the organization• One of management resources of a company• Required due to its influence to operation and activities
  5. 5. Standards For Energy Management• MS 1525:2001 Code Of Practice On Energy Efficiency And Use Of Renewable Energy For Non-Residential Buildings• Green Building Index• ISO 50001 (Energy Management System)-soon to be introduced• VDI Standard 4602( Energy Management)• DIN ISO 9001 (Quality management)• DIN ISO 14001 (Environmental Management)
  6. 6. Key Factors To Implement Energy Management External FactorsINTERNAL FACTORS
  7. 7. INTERNAL FACTORS Reduce energy costs Improve competitiveness Apart of key performance indicators at all level Reduce service and maintenance costs Improve production and working conditions Improve operational safety Costs transparency Improve corporate imageContribute to environmental and climate protection
  8. 8. EXTERNAL FACTORS Regulatory compliance Market demand for green/environmental related policies/practicesCertifications and standards requirements Government fundingUncertainty and increase in energy prices
  9. 9. Key Players And Their Typical InterestsCorporate/Top management  Smooth operation  Compliance with budget  Profit and loss accountsProduction manager  Product quality and delivery dates  Optimization of production costs  Reliability of production facilitiesPurchasing manager  Improvement of purchasing conditions/procedures  Best/optimal pricesFacilities operators  Reliability of operation and maintenance  Low defect/damage potentialsSupply Engineering Manager  Reliability of supplying facilities  Optimization of energy costExternal facility constructor  Sale of facility at high prices  Client’s satisfactionExternal consultant  Maintain the contract  Identification of potential improvements  Client’s satisfaction
  10. 10. Dealing With Key Players• A huge challenge TOP  Introduce energy for the energy MANAGEMENT management manager to system convince every PRODUCTION  Reduce key player to MANAGER compressed consider and pressure implement PURCHASING  Procure energy energy measures MANAGER efficient in line of their equipment duties ENGINEERING  Install variable MANAGER speed drives
  11. 11. Energy Management Process1. FACTS FINDING•Existing Data& Information•Measurements & Recording•Energy Audit 2. PLANNING AND SET TARGETS • Target Definitions • Specific Item For Energy Management • Select Largest Energy Users With Strongest Link To Energy Costs 3. MANAGING ENERGY INTENSITY • Improvements • Evaluation to reduce cost and improve profit
  13. 13. WHY IS EMS NEEDED?• To achieve SUSTAINABLE ENERGY MANAGEMENT  To ensure sustainability if energy efficiency initiatives with changes in the organization, personnel and etc.• To ensure compliance towards regulatory requirements• Energy cost affect company profitability• energy costs which affect the competitiveness in the world market• national energy supply/demand balance• national trade and financial balance• local and global environments• occupational safety and health• loss prevention and waste disposal reduction• productivity and quality
  14. 14. Components In EMSSystem Component Resources ( manpower, hardware and software1. Energy Management Policy Trained personnel2. Organizing Budget3. Planning And Implementation Building Management/Automation4. Evaluation System5. Review Result For Continual Measure, control and monitor equipment Improvement Monitor Utility Meters • Measure Temperatures, Relative Humidity, Pressure, CO2, etc. • Monitor status of equipment – ON/Off or Open/Closed • Digital Control to start and stop equipment • Analog control to adjust set point values, Control Valves, Dampers and Variable Frequency Drives
  15. 15. EMS Cycle ENERGY MANAGEMENT •Commitment from the top management POLICY •SMART policy •Setting and sharing common goals PLAN •Organization and responsibilities ORGANIZING •Energy Manager •Allocation of resources ACTION DO REVIEW FOR PLANNING AND CONTINUAL IMPLEMENTATION IMPROVEMENT CHECK •Management Implementation•Management Review to confirm plan and time frame Suitability, Adequacy •Energy auditing & Effectiveness EVALUATION •Set baselines for measuring•Review targets results•Communicate the progress •Designation of responsibilities•Actions to be taken •Procedures and standards•Reporting and presenting •Measurement and verification •Trainings •Monitoring
  16. 16. ENERGY MANAGEMENT POLICY• Indicates commitment from the top management• Set and share the same objectives and targets from the policy• Committed to treat all energy related departments and processes• Commit the organization to continual improvement in energy performance through policy framework for setting energy objectives and targets and regularly reviewed
  17. 17. ORGANIZING• Indicates commitment to take actions• Establish an organization for energy management and define responsibilities  Energy management team/committee, organization chart• Allocate of resources  Budget, personnel, equipment• Appoint an energy manager• Understand and define the roles and responsibilities of energy manager
  18. 18. Roles Of An Energy Manager In EMS1. Key person in a sustainable energy management system2. Maintaining facilities for energy consumption3. Improving & supervising energy usage4. Conducting and coordinating all activities for energy conservation5. Assistance in energy related contracts or equipment purchasing6. Identify initial and on-going training and developments needs for energy management team members7. Submit regular reports to corporate management on energy consumption trends, load development, energy saving results and potential areas can be improved8. Ensure compliance towards regulatory requirements
  19. 19. PLANNING AND IMPLEMENTATION Establish and maintain energy management action plans to achieve its objectives and targets:  Designation of responsibility;  Set baseline to measure results  The means and time frame by which individual targets are to be achieved; and  A statement of the method by which improvement in energy performance will be verified-procedures/management standards Energy auditing The energy management action plans must be documented, and updated at from time to time To identify personnel and trainings needed to ensure sustainability of the measures
  20. 20. Examples Of Targets SystemCategory Examples of target Type Highest Optional priorityOrganizational Formulate company’s energy policy X Appoint energy manager X Introduce scheduled reporting XEconomic Reduce annual energy cost by 10% X X Introduce energy performance indicators X Introduce and related cost centerTechnical Use high efficiency equipment Xefficiency Control pressure/temperature levels X Load optimization for machinery XBehavioral Raise staff awareness level X X Training and education measures X Carry out campaign programs
  21. 21. EVALUATION• To evaluate and verify results from measures taken  To perform measurements for each parameter that is required for energy saving measurements and calculations.  To quantify energy saved from each energy saving measure
  22. 22. REVIEW RESULTS FOR CONTINUAL IMPROVEMENT Analysis of operability of the operational and organizational structure (at least once in a year) Review of the energy performance indicators (energy intensity) that will be used to communicate the progress of energy performance to the organization Comparison of target and actual value of  The operational energy use  Energy saving measures Management Review to confirm  Suitability, Adequacy & Effectiveness  Actions to be taken based on results
  23. 23. Reporting And Presenting Results Intra-company instrument for information and consultancy Frequency-depending on energy intensity (the shorter the report interval, the higher potential to discover deviation)
  24. 24. Annual Energy Report1. Documentation of contracts 7. Trend and progress of energy use data - Business sector - Key energy figures (energy2. Target criteria of energy status intensity/benchmark) to be checked 8. Trend and progress of energy costs3. Energy Management – Target and measures 9. Display of energy flow-energy balance sheet/chart – Responsibilities – Operational structure 11. Results of energy analysis – explain deviations4. Information on measurement techniques and method used 12. Comparison of target and actual state of energy saving program5. Trends and progress – production and process output 13. Results-Analysis of organizational – Total energy consumption and technical weaknesses, assessment of results and recommendation of measures for future improvement
  26. 26. What Need To Be Done?
  27. 27. ENERGY MANAGEMENT & IMPROVEMENT CYCLE DECLARE POLICY Identify Problems Set Target ESTABLISH INTERNAL & Values ORGANIZATION Plan Saving Measures UNDERSTAND CURRENT Improvement Cycle ENERGY USE Implement MeasuresDaily Management Cycle CREATE PROCEDURE/ Verify results & STANDARDS Evaluation Standardize & MANAGE ENERGY synchronize result INTENSITY with procedures Review& Set Higher Targets
  28. 28. Declare Policy• Declare and introduce energy management policy• Create awareness on energy management system and planned energy management programs
  29. 29. Establish Internal Organization• Permanent Organization  Committee - centralized  Working groups- section/department• Energy manager(the driver!)• Team members• Initial and continuous development program for team members
  30. 30. Understand Current Energy Use (Data)• Obtain current energy data by measurement, calculation or estimation for the individual operation units• Classification of types of energy (fuels types, utility types, etc.)• Regularly gathered and summarized (daily, weekly, monthly, annually)• Check past historical trend and interpret with relation to operational modes and production scales• Compare data with the best practice data or benchmarks in the industry to plan a realistic energy management plan• Utilized for the forecast of future trends
  31. 31. Understand Current Energy Use (Management)• Identify management strength and weakness• Analyze the needs of stakeholders• Anticipate barriers to implement such as insufficient:  support by top management  cooperation of managers within factories  awareness of people to get successful results  capability of people due to lack of training  available technology due to lack of information  availability of manpower and budget for energy management activities
  32. 32. Create Procedure/ Standards• Procedures and standards to be referred for implementation  Person in-charge  Type of energy to be measured  Frequency of measurement  Measuring devices  Ways of energy consumption record (table, chart)  Operation standard values/guideline (range of temperature/energy intensity)
  33. 33. Procedures/Management StandardsOperation and maintenance standards• To ensure rapid maintenance when energy waste is involved• Physical checks on steam leaks, compressed air , failed steam traps, or even un-insulated pipes until they are repairedStandard for monitoring:• Introduce regular measurements and logging of these measurements for all parameters related to equipment energy consumption and performance Energy efficient design standards• Minimum level efficiency standards can be incorporated for each equipment and systemEquipment efficiency standards• To purchase only equipment that meets certain minimum standards of efficiency only
  34. 34. MANAGEMENTOF ENERGY INTENSITY (Daily Management)
  35. 35. Manage Energy Intensity• To enable to find out the problem easier and to take measures to solve it  Energy intensity is easier to be used to evaluate the result from improvement  To compare with before improvement.  Widely accepted in the management of energy• Collect data to calculate energy intensity and produce data in visual forms• Check “alright” and deviations/defects• For deviations/defects  Compare with standards  Check any damage in equipment/process line  Control the operation/maintenance• For “alright”- start improvement step• Management in small unit( facility /machine) is more suitable for improvement of energy intensity than in larger unit( whole plant)
  36. 36. Energy Intensity FOR FACTORIES Energy consumption amount divided by production amount Energy-Production Relationships Specific Energy Consumption (SEC)Applicable for the whole plant/process line/equipment/machineEnergy consumption amount - In electric power (kWh)/heat (J) or by individual particular unitProduction amount – Unit in weight (tonnage) or number of products and etc. FOR BUILDINGS • Building Energy Index, BEI (kWh/m2) • Overall BEI • Air Conditioned Area Energy Index • Lighting Energy Index • Energy use per occupant
  37. 37. Examples Of Energy Intensity Benchmark/Baseline ParametersProduction related Equipment• kWh/T cement produced • kW/ton of refrigeration (cement plant) (Air cond. Plant)• kWh/MT, kCal/kg paper • % thermal efficiency produced (paper plant) (boiler plant)• kWh/kg yarn produced • kWh/NM3 compressed air (Textile) generated• Million kilocals/MT Urea or Ammonia (Fertilizer)
  38. 38. Identify Problems• Identify efficiency problems to be improved• From historical and existing energy performance data You know your place better than anyone else!
  39. 39. Set Targets And Values• Set intended targets and its values• To achieve projected savings• A GOOD Rule – Start small! Type of target DescriptionAbsolute energy Absolute reduction in energy consumption (kWh, GJ,saving Btu) Goal – percent reduction in total energy consumptionMonetary Reduction in total energy costs in RMUnit energy Indicated by specific energy consumption or energyefficiency index in unit or percentage
  40. 40. Plan Saving Measures Plan energy performance improvement and saving measures Identify and prioritize energy saving measures Time duration for implementation  to determine other requirements to implement measures such as external expertise, equipment and etc  to indicate feasibility and financial viability
  41. 41. Implement Measures• Implement planned measures• To reduce energy consumption and energy cost and it can be managed by whole plant, process/production line, individual facility (machine)• Improvement of efficiency level  Resetting, adjustments  Controls  Minor repairs and changes (no cost and low cost measures)• Use new technologies  Require investment and economic evaluation (high cost measures)
  42. 42. Verify Results And Perform Evaluation• To be shown in energy intensity• Easier to evaluate results of operational/technical improvement to be compared against before-improvement
  43. 43. Standardize Synchronize Results With Management Standards• Standardize results and synchronize with management standards/procedures that has been established
  44. 44. Review And Set Higher Targets• Review actual results achieved and challenges faced in the implementation• Identify areas to be improved• Discuss and set higher targets• Report to the top management• Publish results and improvement program
  45. 45. Internal Initiatives To Implement Energy Saving Measures TOP TO DOWN ACTIVITIES •Deployment of policy •Continuous improvement •Daily managementENERGY MANAGEMENT•Observation•Control•Improvement BOTTOM-UP ACTIVITIES •Quality control cycle •System to gather ideas/suggestions •Small group
  46. 46. SMALL ENERGY WORKING GROUP (SEWG) Energy is everywhere and used by everyone at the workplace- suitable for Total Quality Management To utilize ability of workers with incentive for workers and top management All persons in the plant join improvement activities Hierarchical/stratified organization mixed with cluster or small groups Activity contains “top-down” and “bottom- up” activities
  47. 47. Evolution Of SEWG WORKERS TEAM (with advice from engineers/ IDEAL energy manager ENGINEERS + ADVANCED WORKERS TEAM OFSTARTING ENGINEERS
  48. 48. Key success factors from SEWG activities Selection of leader – Leadership Assignment of each role for all team members Support from top management  expectation  budget  rewards-to create sense of accomplishment among workers Technical competency of each team member Communication and ability to resolve conflict
  49. 49. Forming a SEWGEstablish and organizing a group• Member : 5-10• Leader : ElectedEstablish theme and target• Focusing on problems at their own area/workplaceMeeting• To agree on the frequency and agenda to discussData collection, improvement and evaluation• Collect data on their own/receive data from the company/energy manager• Compile and produce data in visual, identify the problem and propose measures by themselves• Implement measures (with permission from the engineer) and evaluate the results
  50. 50. How to activate SEWG?• A leader, members and management feel activities are attractiveMembers feel a sense of accomplishment• Challenge• Effort• Reconsideration• AchievementRoles of manager for accomplishment• Motivate• Guide• Support• Evaluate• AwardTargeting and scheduling is very important
  51. 51. Promoting SEWGTHE MANAGEMENTTop Management, Heads of Department/SectionIntroduction and operation of EMWG at the plantArrange framework to promote EMWGPromotion of energy saving activities by EMWGDefine a boundary/reaching pointSecure resources and provide education andtraining Energy EMWGs Manager 1. Define roles (Consultation 2. Plan goal and annual schedule and to 3. Prepare and conduct meeting provide 4. Follow up actions resulted from with information needed) meeting 5. Record activities and results 6. Prepare reports and present results 7. Learn from best practices
  53. 53. THANK YOU! Q&A