2. Effect of High Energy Cost on
Profitability
In many companies energy cost account for up to 30 % of their
operation cost.
1. J.P.S (Electrical Bill)
2. Fuel Charge (Diesel, LPG and other fuel source)
This often reduces the competitiveness of the business
What can be done to help reduce how much we spend on
energy ?
3. Energy Management Program
Definition
• Energy management is the discipline and measures executed
to achieve the minimum possible energy use and cost while
meeting the true needs of the activities occurring within a
facility.
• Actions intended to achieve this energy efficiency focus on
reducing necessary end-use, increasing efficiency, reducing
wasted energy, and finding superior energy alternatives.
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4. Plant assessment
• A critical part of an energy
management program
– Looks for opportunities to improve the
bottom line of a company
– Without assessments, an energy
management program would have
difficulty identifying energy savings
and would fail to show improvement
5. Energy management
• Can be:
– Informal
– Decentralized, not centrally coordinated or managed
– Project-oriented
– Ongoing Process
• Many companies:
Miss important savings opportunities because they lack
the means for addressing energy use across the
business
6. Effective energy management
• How to Have a effective Energy Management Program:
1. A top-down commitment to energy management
2. A commitment to continuous improvement
3. Embraced an approach that integrates energy management across all
aspects of the business
4. Management systems in place
5. A system to regularly assess and track energy performance
6. Set measurable performance goals
7. An effective reward system for energy performance
8. An empowered energy staff
7. Effective energy management
Make the Commitment:
Management and business
owner/s have to be serious
about energy usage reduction,
they must be willing to provide
the resource needed for the
success of the Project
8. Effective energy management
Assess Performance & Set Goals:
If you don’t have a target that you
are trying to meet you will not
know if the project is successful or
not.
9. Effective energy management
Create and Action Plan:
The action plan will come
from the audit that is
conducted at your facility
10. Effective energy management
Implement Action Plan
You will not realize any savings
by just conducting an energy
audit. The recommendations that
are made must be executed
11. Effective energy management
Evaluate Progress
Tracking of the results from the
actions/ recommendations that
were implemented is
absolutely necessary. This will
inform you at to your success
or failure rate.
12. Effective energy management
Recognize Achievement:
It is good to celebrate the
successes that arise from
the project.
13. Energy Audit Definition
• An energy audit is a systematic study or
survey to identify how energy is being
used in a building or plant. It also identify
energy saving opportunities
14. Inputs and Outputs of a Energy Audit
Energy Audit
•Overall picture of plant
energy use
•Summary of energy cost
• Plant Description
•Areas of energy
•Utility Supply data inefficiency
e.g. electricity, fuel •Energy Cost reduction
and steam potential
•Energy Consuming
systems
15. Stages of a Energy Audit
Gather Analyze the
Preliminary Conduct report and Follow up
Data Plant Visit results
Train Staff
16. Stages of a Energy Audit
Gather Preliminary Data
• This can be in the form of a simple walk through
of the facility
• Historical usage data is also gathered during this
process
• It set the stage for a detail audit
17. Plant Visit/ Detail Audit
• Detail evaluation of Energy use patterns
• Review of Equipment operation characteristics
• Will provide technical solutions and economic
analysis
• A priority listing of energy saving
recommendations
• Report generation
18. Analyze the report and results and Follow up
• The data that is collected from the detailed audit must be
reviewed and recommendations made
• Report generation
• After the recommendation have being implemented then
a follow up is necessary to evaluate ho effective the
recommendation were
19. Clients Responsibilities
1. Must provide the auditors with the relevant data that
will be requested. E.g. Monthly JPS bills
2. Have a person who is familiar with the daily operations
to accompany the auditors
3. If equipment is left at the premises for the purpose of
data collection the client is responsible for those
equipment until retrieved by the auditor
4. The client must be willing to invest in implementation
the recommendations
