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Energy management awareness program for decision makers


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Presentation materials to introduce to decision makers of organizations to trigger the awareness among them with less technical contents and more on commitment required from them

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Energy management awareness program for decision makers

  1. 1.  Corporate trends & potentials for energy savings to increase profitability  Barriers and options for organizations to implement EE measures  ISO 50001: 2011 - Implementing energy management system based on standard to increase profitability
  2. 2. Building owners can see reduced operating costs, increased building values, greater return on investment, and higher occupancy from new and retrofitted green buildings UNEP - GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector Companies may receive reputational benefits from achieving green building certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business whose facility is certified as green, while 48% indicated that green certification of a facility improves their image of a company. University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices UN Global Compact of 766 CEOs worldwide-93 % of CEOs said sustainability issues will be a critical factor to the future success of their business 2012 Ernst & Young Survey – 66% of executives saw an increased amount of sustainability-related inquiries from investors in the past year. 70% inquiries focused on energy management and greenhouse gas emissions & more than ½ questions about sustainability reporting Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year. IS ENERGY EFFICIENCY AN OPTION OR A MUST DO NOW?
  3. 3. Profitability Sustainability Competiveness Competency Working environment quality Corporate Image Operating Costs - Energy Risks – price fluctuation & supply shortages Pollution Carbon emission Depletion of fossil fuel INCREASE USERS’ COMFORT SALES & ENERGY COST SAVINGS BOOST IMAGE & VALUES
  4. 4.  EEPs viewed as “Infrastructure Investments” – LOW PRIORITY VS. CORE BUSINESS – don’t fix if not broken  EEPs funding through loans/debts WILL IMPAIR “CREDIT CAPACITY” from core business – NO WAY for SMEs/SMIs  BENEFITS ARE TOO SMALL TO APPEAR ON CEO’S RADAR SCREEN & to justify “perceived’ operating complexities/risks  NOT CONVINCED ON ACTUAL COST SAVINGS ACHIEVED nor aware of proven Measurement & Verification(M&V) methods to ensure sustainability of savings.
  5. 5. • Management Directives • Implementation of EnMS - to ensure sustainability of energy cost reduction initiatives MEASURES With LOW/NO COST Minimal Cost Savings •Priorities of budget - core business/operations •Investment risks •Limited human resources & expertise MEASURES WITH HIGH COST Significant Cost Savings May require expert assistance & external financing In-house initiatives
  6. 6. MANAGEMENT COMMITMENT ENERGY POLICY PLANNING IMPLEMENTATION & OPERATION SYSTEM & PERFORMANCE CHECKING MANAGEMENT REVIEW Energy saving measures – to bring results in improving energy performance & cost reduction! No management commitment = less impacts = forget it!
  7. 7.  Will provide organizations with  technical and management strategies to increase energy efficiency, reduce costs, & improve environmental performance  a recognized framework for integrating energy efficiency into their management practices.  An access to a single, harmonized standard for implementation across the organization …..with a logical and consistent methodology for identifying & implementing improvements
  8. 8. 1. Appointment of management representative by top management 2. Preparation of energy policy 3. Identification and ensuring compliance against legal & other requirements 4. Conducting energy review of existing energy sources. 5. Creating energy base line as benchmark for improvement 6. Energy performance indicators 7. To provide necessary trainings 8.Establishing necessary operational controls for control of energy consumption 9.Design of energy efficient facilities, equipment, infrastructure, systems and processes right from project stage 10.Procurement of energy efficient equipment, instruments and services such as transportation etc. 11.Monitoring &measurement of energy consumption , performance indicators, significant energy uses & related variables 12.Internal audit, management review, control of documents, control of records.
  9. 9.  Can be implemented solely for the internal and external benefits it provides the user organizations and the latter’s stakeholders and customers  Certification by an independent auditor is not a requirement of the standard itself  To certify or not is a decision to be taken by the standard user, unless imposed by regulatory requirements.
  10. 10. To get energy saving results from LOW – COST energy saving measures
  11. 11.  The implementation of an EnMS is NOT a project!  The use or operation of the EnMS is NOT a project!  Every organisation will be different › Different complexity and scale › Different approach to change management › Different culture › Different speeds of action
  12. 12.  Plan  Do  Check  Act concept
  13. 13. • Without the top management commitment, the EnMS will not succeed! • The top management controls  priorities  authorities  resources • The top management must be engaged and visible! 15
  14. 14.  Is the top management really comitted?  Will they support the system?  This is a decision point!  Will they make the necessary resources available (technical, financial and human)?
  15. 15. Set the scope and boundaries of the EnMS Establish energy policy Allocate resources Appoint management representative Approve formation of energy management team Communicate importance of energy management Ensure objectives, targets, and appropriate ENPIs are established Consider energy performance in long-term planning Ensure measurement and reporting of results Conduct management reviews 17
  16. 16.  Management commitment  Not just a signature!  Define scope of EnMS  Appropriate to scale  Commitment to continual improvement  Make resources available  Framework for target setting and management review Towards achieving energy savings!
  17. 17.  The above are required for each individual involved in the EnMS.  Each person needs to understand their own role and responsibilities  Every needs to know each others authority levels  This may seem like common sense but is often a source of ineffectiveness  MUST be completed, accepted and communicated in advance of next steps
  18. 18.  How much energy am I using?  Where am I using it?  Which are significant users?  What is driving it?  Who is influencing its use?  Do I need to have an energy audit?  System Optimization  Renewable energy options  Are there legal or other requirements?  Develop baselines & EnPIs  Set objectives and targets  Action Plan
  19. 19. Which systems? • Sub meters • Motor list • Estimation • Calculation • Pie Charts • Sankey Diagrams Which people? • Who influences SEUs? • Training needs • Organisation charts Drivers? • What is driving use? • Variables • Activity • Weather • Regression analysis
  20. 20.  Once SEUs are known • Including variables  Reporting requirements can be specified  What meters and measurements are required to deliver these reports?  How much can be achieved with existing instruments?  Manual vs. automated  what new instruments are required • Each new instrument should be able to justify its cost with installation cost • Electricity & liquid flow meters can be good value • Gas flow meters tend to be expensive (steam, compressed air, etc)
  21. 21.  Examine the whole system and not individual components  Establish user requirements and specification  Examine opportunities with use  Examine opportunities with distribution.  Develop a list of all potential ideas  Select items for implementation • Prioritisation  Plan and manage their implementation
  22. 22.  Each SEU has operating parameters which affect its energy use  These need to be identified, quantified, recorded and communicated, monitored & controlled  Examples: › Compressed air - Pressure , pressure drops  Refrigeration- delivery temperature, condensing temperature ,evaporator & condenser approach temperatures
  23. 23.  Check operating procedures  Are operators familiar with the energy impact of operations?  Check maintenance procedures  Check maintenance frequencies  Are maintenance staff familiar with the energy impact of their work?  This review will help to assess training needs  To be aligned with the review of training needs › It additionally checks operating & maintenance procedures
  24. 24.  Energy Baseline(s)  EnPIs  Objectives  Targets  Action Plan
  25. 25.  Competence, training and awareness  Documentation  Operational control • Key Area • Operation and Maintenance • Service Contractors • Training  Communication  Design › Energy Efficient Design (EED)  Purchasing energy, services, goods  Action Plan
  26. 26. Significant energy uses Objectives, targets and action plan Competence, training and awareness Operational control Procurement Monitoring, measurement and analysis
  27. 27. Monitor & Measure •Monitor = passive data acquisition: utility meters, panel meters •Measure = active data collection: sub-meters, data loggers Energy Performance •Use M&M data to determine SEU performance •Calculate efficiency, specific energy or input per unit output Operational Control • Is SEU energy performance as expected? • Are controls working? • How can they be improved?
  28. 28.  Conduct Life Cycle Analysis: Purchasing & Lifetime Costs  If purchases affect significant energy use (singular) notify suppliers evaluation partly based on energy performance  Designate how energy use over the lifetime of the product, equipment or service will be assessed for purchases that have significant impact on energy performance  Significant energy use  Objectives and targets  Past improvement efforts  Maintenance of energy system
  29. 29.  In the design of new, renovated or modified, facilities, equipment, systems & processes that can have a large impact on energy performance ,consider  opportunities for energy performance improvement  operational control  Include energy performance evaluation results in procurement activities, including specification & design  Record design results
  30. 30.  Check Operations • Check operator records • Check maintenance records • Equipment checking  Check the system • Is everyone doing what is required?  Check Performance • Check EnPIs • Check trends and costs  Check progress • Against plans
  31. 31. EnPIs Baseline Savings targeted to date Savings achieved to date
  32. 32.  Independent review of part or all of the EnMS  To determine if the following are meeting the EnMS requirements  Plans  Activities  Procedures and processes  Is the EnMS effective in improving energy performance & operating as intended?  Is it achieving its objectives?  Does the EnMS meet the requirements of a standard if certification is being sought for ISO50001?  An essential part of continuous improvement
  33. 33.  Regular presentation  How are we getting on? Is performance improving as targeted? Problems and barriers to overcome? Achievements  What is the plan for next year? What do we need to achieve this plan?
  34. 34. Ongoing Activities  Training  Communication  Operational Control  Procurement  Energy Efficient Design  Action Plans  Checking • EnPIs • Progress • EnMS SUSTAIN & INCREASE PROFITS!
  35. 35.  Solution or technology based approaches?; or  Project based ; or  With corporate sustainable energy management program with action plans, clear targets & strategies?