Energy Management Process and Organization

APO National Dissemination Program on Energy Management Capacity Building (31st January-1st February 2011,Bogor, Indonesia)

A.K.Asthana K.K.Chakarvarti New Delhi (INDIA)

Definition of Energy Management The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions 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 .

Definition of Energy Management ‡ The sum of measures planned and carried out to achieve the objective of using the minimum possible energy while the comfort levels (in buildings) and the production rates (in factories) are maintained. .

.Objectives of Energy Management  To achieve and maintain optimum energy procurement and utilization. throughout the organization  To minimize energy costs / waste without affecting production & quality  To minimize environmental effects.

. keep plant running). ‡ Automation seen as more important than energy cost management. ‡ Higher priority to more important issues (For example. .BARRIERS/OBSTACLES TO ENERGY MANAGEMENT ‡ Artificially low energy prices and little energy consciousness. ‡ Lack of awareness and energy management expertise ‡ Lack of knowledge of own energy consumption patterns/costs/ potential for saving ‡ Apathy on the part of managers and staff. in plant modernisation of plant.

CONTROLLING .ENERGY MANAGEMENT INVOLVES ALL FOUR MANAGERIAL FUNCTIONS 1. PLANNING 2. LEADING 3. ORGANISING 4.

& low-cost) medium term long term. .PLANNING ‡ Identifying the potential for energy cost savings: immediate/short term (no. ‡ Drawing up plans/programmes/ strategies for realising this potential (includes financial appraisal).

Subject field & Organization on energy conservation Large C A B B C A Small Easy Technology & Investment D Diffic ult D Not to do Effect Small Group Activity Energy Project management team committee .

LEADING ‡ ³Leading Upwards´: gaining the commitment and backing of senior management and key people ‡ ³Leading Sideways/Downwards´: inspiring and motivating colleagues at all levels to become involved in ongoing energy management .

For example: the necessary staff the necessary expertise the necessary technology the necessary equipment ‡ Putting in place the necessary structures and lines of reporting .ORGANISING ‡ Marshalling the resources necessary to be able to manage energy .

CONTROLLING ‡ Setting up the necessary ongoing measurement/monitoring ‡ Setting objectives/targets for energy use and cost savings ‡ Taking corrective action where necessary .

THE TOTAL ENERGY MANAGEMENT PROCESS Awareness of Potential Savings Top Management Commitment Preliminary Energy Audit Detailed Energy Audit Implement No-Cost/ Low-Cost Measures Feasibility Studies -Capital Intensive Projects Implement Higher-Cost Measures Training Monitor .

Without Energy Management ‡ Little energy awareness ‡ Little attention paid to energy .AN ORGANISATION.... .... With Energy Management ‡ Ongoing awareness of energy ‡ Continuous attention to energy as a critical resource ‡ Energy manager coordinates actions ‡ Energy responsibility spread across organisation ‡ Energy not included in investment decisions ‡ Low awareness of energy saving/ management ‡ Energy a key investment factor ‡ Ongoing monitoring of energy technologies ..

ENERGY MANAGEMENT ORGANISATION GENERAL MANAGER/ MANAGING DIRECTOR PLANT MANAGER PLANT MANAGER PLANT MANAGER UTILITIES MANAGER ENERGY MANAGER ENERGY COMMITTEES .

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