Energy Management

Energy Management

Energy management is defined as “the strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output, while holding constant or reducing total costs of producing the output from these systems”.
The objectives of energy management are: achieve and maintain optimum energy procurement and utilization, throughout the organization, minimize energy costs/waste without affecting production & quality, and minimize environmental effects.
Energy management is an integral part of cost reduction strategy to improve competitiveness. Energy management addresses issues related to energy costs, energy efficiency, secure energy supplies, alternative energy sources and abatement of environmental pollution.

Successful energy management calls for a well thought out strategy that addresses issues related to the organization, people, technology, and finance.
Organisation
Energy management, like any other management issue, rarely succeeds without the commitment of the top management. The top management has to recognize that the energy cost is a manageable expense and that there is a scope for reduction. Depending on the size and technological sophistication of the organization, it has to spell out an energy management policy and create the right structure within the organization for controlling this cost center. The subject being inter-disciplinary in nature, the created structure like an Energy Management Committee or cell should have representation from all major departments. Senior persons with decision-making authority should be the members of this committee or cell.
People
To ensure widespread support to the decisions of the energy management cell, people at all levels of the organization have to be sensitized to this issue by conducting a large number of focused training programmes. This is absolutely important in situations wherein significant energy cost reduction is targeted through operational changes. All members of the organization should be aware of the energy cost being incurred by the organization and the competitive pressures to reduce production costs. Members of the energy conservation cell and senior decision makers of all departments should be given specialized training on energy management to enable them to make informed decisions.
Technology
The energy management strategy should be able to clearly elucidate the energy implications of the vintage of technology in use.  It should also be able to identify areas where better engineering practices can reduce energy losses and improve the overall energy efficiency. It should be able to follow the market trends in fuel prices and identify alternative fuel options.
Finance
Energy management projects meeting the financial criteria of the organization should be accommodated in the organizational budget. Active involvement of decision makers from finance in the core energy management group is needed to ensure that the benefits are quantified in a manner that the project gets the deserved priority and finance is allocated. Non-involvement of finance personnel may result in rejection of the project for frivolous reasons.
Energy management strategies with the above four components,  a designated energy manager and an energy conservation cell have a reasonable chance to succeed.

esmsconsulting@naderawads.com