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.
BARRIERS/OBSTACLES TO ENERGY
MANAGEMENT
• Artificially low energy prices and little energy
consciousness.
• Higher priority to “more important” issues (For
example., keep plant running).
• Automation seen as more important than energy cost
management, in plant modernisation of plant.
• 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.
ENERGY MANAGEMENT INVOLVES ALL
FOUR MANAGERIAL FUNCTIONS
1. PLANNING
2. LEADING
3. ORGANISING
4. CONTROLLING
PLANNING
• Identifying the potential for energy cost savings:
- immediate/short term (no- &
low-cost)
- medium term
- long term.
• Drawing up plans/programmes/ strategies for realising this potential
(includes financial appraisal).
Subject field & Organization on energy conservation
Large
Small Energy Project
C Group management team
Activity committee
A
○ ○
Effect
B
B ○ ○ ○
C
○ ○
A D Not to do
D
Small
Easy Diffic
ult
Technology &
Investment
LEADING
• “Leading Upwards”: gaining the commitment and
backing of senior management and key people
• “Leading Sideways/Downwards”: inspiring and
motivating colleagues at all levels to become
involved in ongoing energy management
ORGANISING
• Marshalling the resources necessary to be able
to manage energy - For example:
- the necessary staff
- the necessary expertise
- the necessary technology
- the necessary equipment
• Putting in place the necessary structures and
lines of reporting
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
Training Monitor -Capital Intensive Projects
Implement
Higher-Cost
Measures
AN ORGANISATION....
...Without Energy Management ... With Energy Management
• Little energy awareness • Ongoing awareness of energy
• Little attention paid to energy • Continuous attention to energy as a
critical resource
• Energy responsibility spread across • Energy manager coordinates actions
organisation
• Energy not included in investment • Energy a key investment factor
decisions
• Ongoing monitoring of energy
• Low awareness of energy saving/ technologies
management
ENERGY MANAGEMENT
ORGANISATION
GENERAL
MANAGER/ MANAGING DIRECTOR
PLANT PLANT PLANT UTILITIES
MANAGER MANAGER MANAGER
MANAGER
ENERGY
MANAGER
ENERGY COMMITTEES
Visit us at : www.energymanagertraining.com