Energy Management

MEPM 605
Pr Eng. Prof. Downmore
Musademba
 Purpose of Module
• Is to stimulate thinking about the ways energy
efficiency-enhancing measures could be
implemented in (industrial) enterprises and

• to help put these measures in place.

ENERGY TODAY AND TOMORROW
• Energy is at the heart of development. 
• It makes possible the investments, innovations
and new industries that are the engines of jobs,
inclusive growth and shared prosperity for
entire economies.
• Universal access to affordable, reliable,
sustainable and modern energy is at the center
of efforts to tackle climate change - Sustainable
Development Goal (SDG) 7 
ENERGY TODAY AND TOMORROW
• Until humans harnessed energy, they were
essentially not different from any other
animals.
• Social organization and the use of tools to
increase speed, strength and combativeness
certainly improved their competitive status
and survival.
• Major divergence came in when Homo sapiens
started the exploitation of external energy
sources.
• The earliest was fire, which enabled
people to modify or remove forests and
alter vegetation in a way that human
strength on its own could not.
• Later, the power and rapidity of animals
such as oxen and horses greatly extended
the ability to do work
• Up-until today most of our extra-human
energy sources remain based on fire,
water and wind;
• only the means of using them and the
fuel for the fire have changed.
• Wood has largely been replaced by the
fossil fuels of coal, oil and gas.
• Storing the force of wind and water as
electrical power has superseded converting
it to mechanical energy.
• The transformation of solar energy into
electricity constitutes a variation on the
process of photosynthesis by which
plants store solar energy as biomass.
• The development of nuclear power and
the use of geothermal and tidal energy
represent new departures from traditional
energy sources.
• Today, more than one billion people in
the industrialized countries (about 20%
of the world’s population) consume
nearly 60% of the total energy supply
• whereas just under five billion people in
developing countries consume the other
40%, this imbalance is significant.
• Two billion poorest people with most
still scattered in rural areas, use only
0.2 tOE (tonnes of oil equivalent) of
energy per capita annually
• whereas the billion richest people use
nearly 25 times more at 5 tOE per
capita annually.
• 1 tOE = 11.63 MWh
ENERGY USES
FORMS OF ENERGY
Fig. 1. Different forms of energy
Different forms of energy
• Useful energy is ENERGY FORM which does
the useful work.
• There are energy losses in the motor, which
appear as heat and noise, and the amount of
energy that actually goes into the driven
equipment is less than what is input to the
motor.
 Renewable and Non-renewable
Energy
• Any form of energy that can be used without
depletion, is considered renewable.
• e.g. solar energy, water drawn from a
hydropower reservoir, growing biomass for
energy needs, wind power, Geothermal
energy (using the heat beneath the surface of
the earth).
• All fossil fuels (oil, coal and their derivatives,
as well as gas) are non-renewable.
• These resources are finite, and they deplete
fast causing price increases and fears of
supply limitations.
• All countries and individual users, particularly
large industries, are striving hard to maintain
a balance between the use of fossil and
renewable energy.
• An analysis on the different sources of
energy (both renewable & non- renewable)
demonstrates that each of them has
some weaknesses which cannot be denied

• Hence attention must be drawn to the use

of these sources
 Fossil fuels
• They are the most widely used form of
energy throughout the world.
• They offer considerable advantages, the
most obvious of which is ease of use,
for they are simple to process.
• Coal for instance is readily exploited in
many developing countries although its
emissions could cause serious
environmental problems.
• Oil is also easy to use and for the
time being is offered at a relatively low
price

• Natural gas, on the other hand releases less

carbon dioxide (CO2) per unit of
energy than oil.
 Drawbacks of fossil fuels
• Major drawback of fossil fuels is their
finite nature; they will inevitably run out.
• The period of grace available to
humanity before they are exhausted is
estimated at 1,000 years.
• This may seem long compared with a
human lifetime but is extremely short in
astrophysical terms.
• Oil, operators foresee no problems for
the next 50 years.
• After that date, it is to be feared that the
only remaining deposits would be those
in the Caspian Sea or the Middle East.

• The risks of conflicts resulting from

such a concentration are clear.
 Risks of conflicts
• The Caspian sea is known for its abundance of
energy resources
• (oil and natural gas reserves in offshore fields
and onshore on the coast of the sea),
• Five countries have a shoreline at the
sea, Iran , Russia, Azerbaijan, Turkmenistan,
and Kazakhstan,
• These are the world’s most repressive states
• All states at the Caspian exploit the reserves.
• But much of the offshore oil and natural gas
resources in the Caspian Sea have not been
tapped,
• There has been a stand-off conflict between
the 5 bordering states over where to
demarcate the maritime borders and how to
split up the energy resources.
 Russia-Ukraine War
• Europe depends for close to 40% of its annual
gas consumption on Russian supplies

•  It is imported via 4 routes – Ukraine, Belarus-

Poland; Nord Stream 1 and TurkStream
corridors linking Russia to Germany and
Turkey via the Baltic and Black Sea,
respectively.
 Russia-Ukraine War
• Russia is also a huge oil exporter & supplier of
fossil fuel products, via Ukraine's ports
• Russia is the world's second top producer of
crude oil after Saudi Arabia, and supplies
about a third of Europe's needs.
• Sanctions against Russian exports of oil and
gas has had ripple effect on the global
economy,
• The world’s economies are particularly
sensitive to the price of oil & gas,
• The Russia-Ukraine conflict has caused a
great increase in the current price of oil and
gas
 lifting the cost of living, impacting industrial
and agricultural production and potentially
leading to social unrest.
 Further drawbacks of fossil fuels
• Use of fossil fuels is associated with climatic
risks, the fuels release CO2, a gas which,
contributes significantly to unprecedented
climatic change.
• CO2 causes greenhouse that traps heat
close to the earth’s surface leading to
global temperatures rising faster and higher
• It is reported that Russia is flaring large
amounts of natural gas, which could have been
exported.
• A plant near the border with Finland, is burning
an estimated $10m worth of gas every day.
• Cause for concern as large vol of CO2 & soot
emitted could exacerbate the melting of Arctic
ice.
A gas flare at a Russian oil and gas
field. 
• The analysis by Rystad Energy indicates that
around 4.34 million cubic metres of gas are
being burned by the flare every day.
• Gas flaring is a normal process in the industry,
but the scale at which gas is being burned at
the plant was unprecedented.
• Russia is flaring the gas, probably because its
reserves are full & cannot handle the excess
• The consequences of this are increasingly
severe weather, such as storms,
droughts and floods,
• These have major impacts on human
settlements, food production, disease
patterns and natural ecosystems.
• The impact is greatest for those most
vulnerable, i.e. the poor in developing
countries.
• Accidents such as oil spills or leakage
from gas pipelines are another drawback
and their extensive environmental
damage is well known.
• Global demand for oil is increasing, outpacing
any gains in oil production and excess
capacity.
• This is because most economies have become
increasingly industrialized and urbanized,
which has contributed to an increase in the
world demand for oil.
• Hence sound management of this
resource is therefore becoming imperative
and cannot be left to the sole
responsibility of the producer countries
and distributing companies.
 Renewable Energy
• By definition, RE resources do not play a
part in the build- up of carbon dioxide
in the atmosphere, however, the extent
of the environmental damage which they
cause should not be underestimated.
• The construction of wind-power farms
utilises farm land meant for traditional
agriculture.
• Hydroelectric energy, with its
development of extensive dams, results in
major ecological changes and
• Destruction of the environment (destroying
native habitats and ecosystems,
extinguishing or threatening species,
eliminating beautiful landscapes, preventing
natural variations).
• Solar thermal power has yet to
penetrate the market on any
appreciable scale.
• It must also be pointed out that the
costs of solar energy, wind power and
biomass currently are higher than those
of coal, oil, gas and nuclear power,
putting them well beyond the reach of
most people.
 ENERGY AND SUSTAINABILITY
• The term “sustainability” entered into common
currency following the publication of the report
Our Common Future by the United Nations’
Brundtland Commission in 1987.
• They defined sustainability, and in particular
sustainable development, as “development
that meets the needs of the present without
compromising the ability of future
generations to meet their own needs”. (United
Nations, 1987).
• According to the triple bottom line concept
(TBL or 3BL), Sustainability means:
 to make money (economic pillar),
 to improve environmental performance
(ecologic pillar), or
 To improve the situation of people (social
pillar) [Laszlo and Sroufe, 2015].
In the context of energy, sustainability has come to
mean the harnessing of those energy sources:
 that are not substantially depleted by continued
use;
 the use of which does not entail the emission of
pollutants or other hazards to the environment
on a substantial scale; and
 the use of which does not involve the
perpetuation of sustainable health hazards or
social injustices.
 BUSINESS & ENERGY INTENSITY
A business or company can be classified in terms of
the total expenses spent on energy;

One of the priorities of any business should be to

increase energy efficiency by attempting to
reduce energy consumption.

So we classify a business unit in terms of the

company’s energy intensity
 
 What is Energy Intensity?
• Is the amount of energy used in producing a
given level of output or activity; so that using
less energy to produce a product reduces the
intensity.

• It is measured by the quantity of energy

required to perform a particular activity
(service),
• Energy intensity relates the energy consumed
over time with respect to a defined physical
unit of output(s) for the facility or company.

• Is expressed as energy per unit of output or

activity measure of service.
 EXAMPLE
Q1) Calculation of Energy Intensity for ZHANGI
CERAMIC TILE PRODUCTION Plant, whose
Primary Energy Consumption in 2010 was
340,000 MWh with an output of 18,600 tons
of ceramic tile
Q2) If the 2011 Primary Energy Consumption
changed to 355,000 MWh with an output of
19,200 tons of ceramic tile; determine the:
a) 2011 Energy intensity.

b)2011 Total Improvement in Energy Intensity

(%) Ceramic
a) 2011 EI = 18.49 MWh/ton of ceramic tile

b) Total Improved Energy Intensity (%)

= -1.15%
The -ve total improvement in energy intensity
represents worsening energy intensity.
Q3) The Porcelain tile production line at ZHANGI
for 2010 Primary Energy Consumption was
300,300 MWh with an output of 20,500 tons of
porcelain tile. In 2011 Primary Energy
Consumption was 320,000 with output of
22,200 tons of porcelain tile. Determine the
2011 Total improvement in Energy Intensity (%)
{1.64%}
Q4) Determine the overall 2011 Total
Improvement in Energy Intensity for ZHANGI
company.
• Where
• ei- represents the total improvement in
energy intensity for a given production line &

• ec – represents the baseline energy

consumption for the given line
• Hence the Total Improved Energy Intensity for
ZHANGI = 0.14%
BUSINESS & ENERGY INTENSITY
Energy Consumption
 Energy Intensive Classification
Classification Parameters Examples
Less Energy Intensive if any company uses manufacturing
Business ±10% of its recurrent industries such as
costs on energy textile and garments
Moderately energy may spend between 30 •ceramic and glass
intensive businesses - 50% of their expenses industry,
on energy •resort hotels
Highly energy intensive use as much as 50% of •Commercial buildings
businesses their total expenses on such as luxury hotels
energy •transport business
•Cement Industries

NB. No hard and fast rule for this classification

• The energy intensity of any business is
calculated using the following expression:

• Table below shows the cost of production

per tonne, for a small factory. Calculate the
EI for this factory.
Cost of Production per tonne
 Solution
First calculate the total cost of Energy:
• Total cost of Energy = 2,263.87 + 8,172.37 =
$/t 10,436.24

• This is a moderately low energy intensive

industry,
 Energy Conversion Efficiency
• It is defined as the useful energy output
divided by the total energy input. It is
commonly expressed as a percentage of the
input.
• Energy Efficiency improves when a given level
of service is provided with reduced amounts
of energy inputs or

• services are enhanced for a given amount of

energy input.
• When we talk of the amount of energy
consumed per unit of product/output,

• It is referred to as the specific energy

consumption (SEC)
• SEC is a number with dimensions
(GJ/tonne)
 Energy Intensity Indicators
• Efficiency improvements in processes and
equipment and other explanatory factors can
contribute to observed changes in Energy
Intensity.
• Energy efficiency refers to the quantity of
specific goods or energy services (e.g., lighting
or refrigeration) that can be produced with a
given amount of energy.
• It is most accurately expressed at the level of
very specific technologies or processes.

• E.g.Tons of steel that can be melted with a

megawatt hour of electricity.
• Energy intensity on the other hand is the
number of megawatt hours used to melt one
ton of steel.
• At the level of a specific technology, the
difference between efficiency and energy
intensity is insignificant — one is simply the
inverse of the other.

• The distinction between EI and EE is important

when multiple technologies or multiple
products underlie what is being compared.
• It would not make sense to compare the EE of
steel production with the EE of ethanol
production,
• But it is possible to examine the EI of all
manufacturing.
• Improvement in EE can be defined as an
increase in energy end-use efficiency as a result
of technological, behavioral and/or economic
changes.
 Indicators of Improved EE
Improved EE can be indicated by:
 obtaining an unchanged output value at a
reduced energy consumption level, or
 obtaining an increased output value with
unchanged energy consumption, or
 obtaining an output value that, in relative
terms, surpasses the increase in energy
consumption.
 Purpose of Energy Efficiency
Indicators
The main purpose of energy efficiency indicators
is to monitor:
 the progress of the EE of a given production
unit and
 a given production rate over time and to see
the impact of EE improvement measures and
projects on the energy performance of the
production process/unit
 Energy Efficiency Index (EEI)
• The energy efficiency index (EEI) is used to
show the change in the given time period and
is more useful in monitoring the energy
efficiency of a system, process or installation.

• EEI is defined as the ratio of reference SEC

(SECref) to SEC of the unit or process being
considered.
• SECref may either be a reference number
which is generally accepted by the industry
sector to which the production process
belongs, or it may be the SEC of the
production process at a given reference year.

• EEI is a dimensionless number.

• SEC decreases with increasing energy
efficiency (EE) whereas

• EEI increases with increasing energy efficiency

(EE).
• Energy management thus targets the
lowest possible SEC and the higher
possible EEI.
 Benefits of Energy Efficiency
Improvement
1) It pays i.e. saves money
2) Slows down depletion rate of energy
resources
3) Helps protect the environment (trees)
4) Reduces gaseous emissions and mitigates
climate change
5) Alleviates energy shortages; a supply-side
option
Struggling Companies have no
time for energy efficiency?
Inculcating a sense of responsibility
• Comes with managing the available energy so
as to ensure energy security