As presented at Green Buildings and Parks 2015. An overview of the strategic approach to propose, to start and implement effective energy management system for companies

1. IMPLEMENTATION OF ENERGY
MANAGEMENT SYSTEM TO IMPROVE
ENERGY EFFICIENCY
Green Buildings & Parks World 2015
By
ZAINI ABDUL WAHAB
Energy Management System Consultant
CONNECSYS SDN BHD
5th August 2015
InterContinental Hotel, Kuala Lumpur

2.  Overview of Energy Efficiency(EE)
business trends,potentials & approaches
 How to start
 How to implement & Key success factors
 What’s next?
Outline

4. 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?

5. Energy Supply &
Utilization
ASSET RESPONSIBILITY PERIOD
Energy affects most of the life cycle of assets
Energy costs affected by the fluctuating global primary energy
market prices – mainly from fossil fuels – depleting resources

6. HOW ENERGY CAN BE SAVED AT BUILDINGS?
Buildings’ energy
savings potential can
range from 3-41%
Source: www.energymanagertoday.com

7. ALTERNATIVE ENERGY
SOURCES
High costs
ENERGY EFFICIENT
TECHNOLOGY SOLUTIONS
Medium-high costs
Require financial &
investment risks assessments
SAVE THROUGH BEST PRACTICES &
CULTURAL CHANGE – ENERGY
MANAGEMENT
Low-no costs
MORE POLICIES &
SUPPPORT
MEASURES
REQUIRED FROM
THE GOVERNMENT
TO ENCOURAGE
INVESTMENTS
FROM PRIVATE
SECTOR

8. Factors impeding the uptake of energy
efficiency opportunities
Source: www.climateworksaustralia.org

9. LOW PRIORITY VS. CORE
BUSINESS
FUNDING THROUGH
LOANS/DEBTS FOR EE
PROJECTS WILL IMPAIR
“CREDIT CAPACITY
BENEFITS ARE TOO SMALL TO
APPEAR ON TOP
MANAGEMENT’S RADAR
SCREEN
NOT CONVINCED ON
ACTUAL COST SAVINGS
ACHIEVED
Barriers to energy efficiency among the
top management groups

10.  Inefficiencies in the business can
go unnoticed
 Lost opportunities to improve
energy use & reduce carbon
emissions- may not be acted
upon
 Unnecessary energy expenditure
erodes profits & performance

11. HOW TO START AN
ENERGY MANAGEMENT
PROGRAM AT YOUR
COMPANY?

12.  Energy supply/security issues for business continuity
 Rising energy prices
 Market (customers & investors) expectations on energy &
greenhouse performance
 Employee expectations
 Local community concerns
 Legal requirements
 Government funding and tax benefits
 Maintenance, reliability & other operational issues
#1. CONFIRM BUSINESS DRIVERS

13.  Typical manufacturing companies* can improve their profit margins
by 2% within 3 years
#2. CONFIRM SUBSTANTIAL DIRECT & INDIRECT
SAVINGS(ENERGY & NON ENERGY COSTS)

14. Planning-Study
the
Requirements
Understand the needs-
Approval Parties
Develop a
Methodology to
reach “them”
Evaluate the solution
to meet evaluation
criteriaAdvice from experienced
people & experts
Outshine Your
Competitors
Guidelines to follow, time &
resources available
#3.PREPARE STRONG BUSINESS CASE & PROPOSAL

15. HOW TO IMPLEMENT EFFECTIVE
ENERGY MANAGEMENT
PROGRAM?
Will require long term
planning & consistency in
implementation

16. Fact Findings
Planning &
Target
Setting
Managing
Energy
Performance
BASIC ENERGY MANAGEMENT
IMPLEMENTATION PROCESS FLOW

17. 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!

18. KEY SUCCESS FACTORS
Major elements to
be considered

19. • The top management
controls
 priorities
 authorities
 resources
• The top management
must be engaged &
visible!
CONFIRM & SECURE THE
COMMITMENT FROM THE TOP
Without the top
management commitment,
the energy management
program will not succeed!

20. Guidance attached:
 Using remote building energy performance assessment auditing technology;
 Participating in demand management programs
 Ensuring that monthly performance data is entered into the Environmental Protection
Agency ENERGY STAR Portfolio Manager
 Incorporating, where feasible, the consensus-based, industry standard Green Button data
access system into reporting, data analytics & automation processes
 Implementing space utilization and optimization practices and policies;
 Conforming, where feasible, to city energy performance benchmarking & reporting
requirements
 Installing and monitoring advanced energy meters in all federal data centers
 Establishing a power usage effectiveness target of 1.2 to 1.4 for new data centers & less
than 1.5 for existing data centers.
EXAMPLE?
In March 2015, President Obama signed an Executive
Order calling for federal agencies to reduce energy
use in federal buildings by 2.5 percent per year from a
2015 baseline, through 2025.

21. INTEGRATION OF ENERGY
MANAGEMENT INTO THE ORGANIZATION’S
EXISTING SYSTEM
Embeds energy management best-
practice energy management in
day-to-day operations
Avoid making energy management as too many
new things to employees
Standardizes processes to ensure
improvements are sustained over time

22. › Skilled & knowledgeable personnel
APPROPRIATE RESOURCING
To build
competencies of
the personnel
Ensure &
sustain success
Gather
feedback &
input
All training &
expected
skills acquired
to be
documented
Ensure
understanding
of employees

23. Sufficient funds for implementation -
influencing company culture, systems &
processes
 Monitor, verify & promote
SUCCESSFUL PROJECTS to build
awareness & to demonstrate
what is possible
 Regularly brief management on
energy risks & opportunities
 Streamline & adapt project
approval processes – to reduce
limitations to access for funding
for energy efficiency projects

24. EFFECTIVE REVIEW,PLANNING &
ESTABLISHMENT OF ENERGY EFFICIENCY
GOALS
Can be translated into business performance
goals & included in management performance
metrics

25.  Energy Baseline(s)
 Energy Performance Indicators
 Objectives
 Targets
 Action Plan
PLANNING OUTPUTS
MUST BE AGREED &
WELL-COMMUNICATED!

26. Adoption of effective energy
management system technologies for
operational controls & key data gathering
Basic data collection & reporting
Computerized management system
with operational controls of key
operating parameters

27. Implementation of energy performance
tracking, measurement & reporting systems
Monitor performance in relation to goals & objectives for top
management updates to seek continuous supports

28. EFFECTIVE AWARENESS PROGRAM
Effective communication
internally & externally
• To ensures that senior
managers & executives
commit to energy efficiency
• All employees & services
providers play their well-
informed roles in the process

29. EnMS Cycle COMPLETE
Ongoing Activities
Training
Communication
Operational Control
Procurement
Energy Efficient Design
Action Plans
System Checking

30. STANDARDS TO
REFER/ADOPT?
To START getting energy saving results
from LOW – COST energy saving
measures in energy management
system implementation

31. 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.
Key Requirements in ISO50001:2011 Standard – Energy
Management System(EnMS)

32. WHAT’S NEXT?
To go ahead &
secure /maintain
commitment from
the top management
Carry out the energy
review & planning
steps
Carry out the
implementation &
operation of Energy
Management
Program
To continue supports
from the top
management with
performance
improvements & energy
cost savings achieved

33.  Keep it simple with business
in mind
 Do it together as a TEAM!
 The continuous supports
from the top management is
needed-KEEP CONVICING
THEM!
REMEMBER…

34. CONNECSYS SDN BHD
www.cnsgroup.com.my
mail@cnsgroup.com.my
THANK YOU!