Chapter 3: Sustainable Energy Management

CHAPTER 3
SUSTAINABLE ENERGY MANAGEMENT

UMMI KALSOM BINTI NOOR DIN
AMIZA BINTI YAMAN
1 POLITEKNIK PORT DICKSON

DEG 5122
ENERGY EFFICIENCY AND MANAGEMENT

COURSE LEARNING OUTCOMES (CLO)

Upon completion of this course, students should be able to:
1. Apply the concept and principles of energy efficiency, management and auditing in different sectors. (C3, PLO1 )
2. Analyze energy efficiency and management in different sectors. (C4, PLO3)
3. Demonstrate good communication skill in oral presentation individually / in group, on assigned topic(s) within a
stipulated time frame. (A3, PLO6)

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CHAPTER 3.0
SUSTAINABLE ENERGY MANAGEMENT

Learning Outcome:
3.1 Students should be able to know the sustainable energy management system
3.2 Students should be able to understand the sustainable energy management system
3.3 Students should be able to apply energy management system
3.4 Students should be able to analyze managing activities in sustainable energy management system
3.5 Students should be able to understand energy management performance review

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Learning outcome

3.1 Students should be able to know the sustainable energy management system
• Introduction to Sustainable Energy Management
• Definition and role of Energy Manager
• Responsibilities of Energy Manager What’s Sustainable Energy Management???

•Process of managing the energy
consumption in the organization to
assure that energy has been
efficiently used.

•Covers all aspect of energy
consumption, technical and non-
technical

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Principle of sustainable energy management

•Comply with organizational objective/goal
•Involve all staff in the organization
•Develop organization and staff knowledge
•Create the continuous improvement process
•Integrate with standard working procedures

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Why need energy management????

ISO 50001:2011 specifies requirements for establishing, implementing, maintaining and improving an energy management
system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement of
energy performance, including energy efficiency, energy use and consumption.

ISO 50001:2011 specifies requirements applicable to energy use and consumption, including measurement, documentation
and reporting, design and procurement practices for equipment, systems, processes and personnel that contribute to energy
performance.

ISO 50001:2011 applies to all variables affecting energy performance that can be monitored and influenced by the
organization.

ISO 50001:2011 does not prescribe specific performance criteria with respect to energy.

ISO 50001:2011 has been designed to be used independently, but it can be aligned or integrated with other management
systems.

ISO 50001:2011 is applicable to any organization wishing to ensure that it conforms to its stated energy policy and wishing
to demonstrate this to others, such conformity being confirmed either by means of self-evaluation and self-declaration of
conformity, or by certification of the energy management system by an external organization.

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Why need energy management????

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Benefit of sustainable energy management system

1) Systematic energy cost management
2) Reducing operation and maintenance cost
3) Increasing staff awareness on energy conservation and waste minimization
4) Developing organization and staff knowledge
5) Setting up energy target & plan
6) Setting up Measurement &Verification (M&V) procedures
7) Preparing energy reporting system
8) Supporting other quality system

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Energy manager shall:
a) Be given authority from the top management
b) Report directly to top management
c) Be one of the high level management people (energy

manager as dedicated function or as a joint function)

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Energy managers perform audits to
evaluate energy use, costs, or
efficiency initiatives. They monitor and
analyze energy consumption, and
sometimes water consumption as well.

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WHO IS AN ENERGY MANAGER???

A good energy manager should display the following competences:
 » A senior/middle class manager who can report to the top management directly;
 » Be familiar with main production processes;
 » Have a certain understanding of production equipment, electrical, boiler, air-
conditioning, lighting, and auxiliary systems;
 » Have a certain degree of financial knowledge and energy management; and
 » Strong management ability and is able to implement improvement plans independently.

 The energy manager is required to:
 » Establish, implement, maintain, and improve energy management systems in
accordance to the national and international standards;
 » Provide regular updates to top management on all energy management systems;
 » Submit proposals for improvements; and

11  » Liaise with external organizations on energy management issues.

Position of energy manager in an organization

 Senior executives must assign an independent specialist
to oversee energy management within the company,
whose directors are allowed to designate an internal
energy manager from their middle-level management
staff.

 energy manager usually resides somewhere in the
organization between senior management and those
who control the end-use of energy.

 In this case, the standards recommend appointing a
supervisor or higher-level executive from the production,
maintenance or engineering divisions.

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RESPONSIBILITIES OF ENERGY MANAGER

• Prepare an annual activity plan and present to management concerning financially attractive investments
to reduce energy costs.

• Initiate activities to improve monitoring and process control to reduce energy costs.
• Analyze equipment performance with respect to energy efficiency.
• Ensure proper functioning and calibration of instrumentation required to assess level of energy

consumption directly or indirectly.
• Prepare information material and conduct internal workshops about the topic for other staff.
• Establish a methodology how to accurately calculate the specific energy consumption of various

products/services or activity of the firm.
• Develop and manage training program for energy efficiency at operating levels.
• Develop integrated system of energy efficiency and environmental up-gradation.
• Wide internal & external networking.
• Co-ordinate implementation of energy audit/efficiency improvement projects through external

agencies.
• Establish and/or participate in information exchange with other energy managers of the same sector

through association

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a) To lead and drive energy management towards continual improvement and sustainability within an
organization (with a systematic and strategic approach)

b) The approach to sustainable energy management is based on SIX pillars.

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Pillar 1: Formulating Energy Management Policy

a) Energy policy necessary to ensure sustainability in energy management
b) Energy savings objectives of departments must be consistent with overall energy

policy
c) Energy manager is the key person to formulate the energy policy
d) Need consensus when defining energy policy
e) Energy policy must be reviewed and approved by executive management
f) Energy policy must be communicated and promoted withing the organization

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Pillar 2: Getting Commitment

a) Commitment from all stakeholders in the organization is necessary to successful
implementation of energy management (from executive to operational level)

b) Energy manager responsible for getting commitment from all parties by:
c) Individual and group discussions
d) Information campaigns
e) Training
f) Posters and leaflets, etc.
g) Energy manager shall prepare effective and clear illustration of the business

benefits that energy efficiency can bring

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Pillar 3: Planning & Organizing, Objective and Target Setting

a) Energy manager shall lead each part of the organization to define energy
performance objectives and targets consistently with the energy policy

b) Targets must be realistic, meaningful, achievable and measureable.
c) Energy manager assist in preparing action plans

 Action plans must integrate:
a) Form the appropriate level of line management
b) Of the action plans and the overall objectives of the organization’s energy policy
c) Assignment of specific actions to individuals, with clear deadlines for reporting

progress and completion;
d) Indication of the person responsible for monitoring and approving the action

when it has been successfully completed; and
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Pillar 4: Implementing Action Plans

a) Action plans implemented by each department
b) Energy manager responsible for:
 Coordination among departments
 Monitoring
 Problem solving
 Conducting needs assessment

c) Energy manager must make sure that needs and interests of everyone are taken into consideration
d) Regular meetings must be organized to monitor, assist, identify problems and propose solutions
e) Energy manager ensures coherence among action plans and energy policy

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Pillar 5: Conducting System Audit

a) Energy Manager created system audit program and set up internal audit team
b) The system audit will:
c) Firstly, to ensure that all aspects of sustainable energy management performance

are quantified
d) Secondly, to ensure that certain standards are taken into consideration when

implementing the system
e) Energy manager coordinates system audit activities and gather information and

reports

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Pillar 6: Controlling and Monitoring

a) Performance of action plans must be assessed through control and monitoring
b) Energy manager helps create monitoring tools and procedures such as effective

reporting system

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Learning Outcome:
3.2 Students should be able to understand the sustainable energy
management system
Preparation of energy management system:
a) Energy policy
b) Effective energy management committee
c) Energy accounting center
d) Energy efficiency index
e) Working manual and tools for energy management
f) Documentation in energy management system

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Process preparation of energy management system

Energy policy
 An energy policy is a written statement of a commitment to managing
energy and carbon emissions.

 Commit the organization to continual improvement in energy performance
through policy framework for setting energy objective and targets and
regularly reviewed

 Indicates commitment from the top management

 Energy management standards encourage companies to create energy
policies specific to their company operations. But implementation of these
policies is up to the discretion of managers and companies.

 The format of the energy policy statement is various, but it usually includes
the goal or objective of the company and the more concrete targets in the
field of Energy Management. The statement shall match the company’s
mission statement or overall management strategy plan.

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Characteristic of energy policies
that needed in an organization:

State an objective — Have a clear, measurable objective that reflects the
organization’s commitment, culture and priorities.

Establish accountability — Institute a chain-of-command, define roles in the
organization, and provide the authority for personnel to implement the energy
management plan.

Ensure continuous improvement — Include provisions for evaluating and updating
the policy to reflect changing needs and priorities.

Promote goals — provide a context for setting performance goals by linking
energy goals to overall financial and environmental goals of the organization.

Benefits having an energy policy in an organization

1. Demonstrates company commitment
2. Helps guide and focus efforts for improving office energy efficiency
3. Communicates your commitment to saving energy inside and outside your

organisation
4. Motivates management and staff
5. Provides direction for a whole-of-organisation approach to energy

management
6. Sets targets against which performance can be judged

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Process preparation of energy management system commitee

• Effective energy management committee 1. Energy policy
2. Energy
1. HR Development
2. Working manual & accounting
centre
tools 3. Energy
3. Target & plans Efficiency Index
4. Documentation\
5. Performance

review

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Energy management committee in an organization

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ENERGY MANAGEMENT COMMITTEE (EMC)

 To set up and manage the activities in the system, according to
the energy management working procedures agreed by the
whole organization.

Structure of  Chair person
EM committee
 Secretary
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 Technical staff (more
than one person)

 Administrative staff
(more than one person)

Function of EMC

1. Assess the energy management performance
2. Analyses organization strength and weakness
3. Prepare energy policy
4. Define and set up energy accounting centres
5. Organize the preparation of EM-WP (working procedures)
6. Organize the preparation of energy target and plan
7. Support the implementation
8. Organize the conducting of performance reviews
9. Review and adjust energy policy, energy target and plan.

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Process preparation of energy management system

• Energy accounting center (EAC)

 The EAC structure is based in the principle that, if a manager responsible for a Area\equipment/ma Palnat record data
department in a plant is made accountable for the energy costs of the chine/system
department, and is supplied with the required information on costs and
consumption, there is an incentive to find ways of improving performance. 1. Front office Working hour per day
- Monthly electrcal consumption data
 Implementing an EAC structure involves identifying where management
accountability is defined by location, installing meters on energy utilities at the 2.Warehouse Working hour per day
point of entry to the area or department, and providing information on
consumption and activity on a routine (daily, weekly or monthly) basis. 3. Chiller1 Power consumption
- Actual cooling production capasity
a) responsible person with adequate metering equipment
b) person who study existing data or information regarding energy consumption 4. Chiller2 Power consumption
- Actual cooling production capasity
for each area, equipment or system.
c) Each EAC should prepare EEI, target & plan budget and monitoring process. 5. Electrical room Daily electrical consumption
d) No of EAC will depend on size and condition of each organization.
6. Laboratory Daily electrical consumption

Process preparation of energy management system

• Energy Efficiency Index(EEI)

 Energy Efficiency Index (EEI), or sometimes known as Building Energy Index (BEI), is the most commonly used index as a
Key Performance Indicator (KPI) to track and compare performance of energy consumption

 In building, BEI is tied to the size of the building and is considered as energy used per unit of building floor area

 In general, EEI can be defined by an energy component and a factor related to the energy used component of the
organization

 The factor which most accurately reflects the practical application of energy and can give the best measure of energy
performance.

Type of fuel Unit
Bunker oil Litre

Diesel Litre Example measured unit
LPG kg for each type of fuel.

Natural gas MMBTU

Coal Ton

Lignite Ton

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EAC & EEI Plant record data EEI
kWh/ working hour
Area\equipment/machine/system Working hour per day
1. Front office - Monthly electrcal consumption Kw/ ton (chiller)
data kWh/ unit of working hour
2.Warehouse
3. Chiller1 Working hour per day

4. Chiller2 Power consumption
- Actual cooling production
5. Electrical room capasity
6. Laboratory
Power consumption
- Actual cooling production
capasity

Daily electrical consumption

Daily electrical consumption

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Process preparation of energy management system

• Working manual and tools for energy management

 Established when a baseline EEI has been set and has common agreement among
executive and the EM committee

 Each EAC has to prepare its own working manual tools for its staff to follow and
use in daily work.

 Component of working manual and tools for EM:

-Process mapping(PM)
-Work Instruction (WI)
-Log sheet (LS)
- calculation Sheet (CS)
-Operational Guideline (OG)

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Process preparation of energy management system

• Documentation in energy
management system

Have 3 categories :
 Type a: working procedure
 Type b : working manual and tools
 Type c: monitoring document

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Learning Outcome:
3.3 Students should be able to apply energy
management system
• Identify step to set up energy target and plan
• Monitoring, targeting and reporting system

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Step to set up energy target and plan

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• Step to set up energy target and plan

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• Step to set up energy target and plan

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• Monitoring and reporting system

ENERGY MONITORING,TARGETING AND REPORTING (EMTnR)

 Establish an energy monitoring and reporting system to collect, analyze and report on
energy costs and usage.

 Energy Monitoring is the regular collection and analysis of information on energy use. Its
purpose is to establish a basis of management control, to determine when and why energy
consumption is deviating from an established pattern, and to provide a basis for taking
management action where necessary.

 Targeting is the identification of levels of energy consumption towards which it is
desirable, as a management objective, to work.

 Reporting closes the loop, by putting the management information generated in a form
that enables on-going control of energy use, the achievement of reduction targets, and the
verification of savings.

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 The management review will assist the organization to achieve continual improvement
and to assess the suitability, adequacy and effectiveness of the EMS

 When conducting management review, the organization should also take into account
the concept of continual improvement, which is achieved by evaluating the energy
performance against the policies, objectives and targets.

 The management review should also address external issues relevant to the energy
performance of the organization and identify opportunities for improvement and where
appropriate changes of emphasis or direction

Example model of reporting

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Benefits of Energy Monitoring,Targeting and Reporting (MTnR)

• Energy cost savings, typically 5 to 15% as a direct consequence of the MT&R program, with concomitant reductions in
emissions of CO2 and other pollutants

• Co-ordination of energy management policy, through targeting of initiatives that achieve the maximum benefit, and
sustaining savings over the long term

• Assisting with the acquisition of financing for energy efficiency projects, through the accurate determination of baseline
energy use levels for energy efficiency project proposals, and verification of savings

• Improved product and service costing, by the definition of the energy content of products and services

• Improved budgeting, by providing a basis for the more accurate projection of future energy use for given levels of
activity

• Better preventative maintenance, by increasing the availability of performance data on energy systems

• Improved product quality, by increasing the level of control on production processes

• Waste avoidance, by the extension of the principles of MT&R to other environmental management issues, such as water
consumption, materials management, plant downtime, and so on.

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Learning Outcome:
3.4 Students should be able to analyze managing activities in sustainable energy management system
• Project management and controlling techniques
• Budget and resources management

• Project Management is a set of principles, methods and techniques
for effective planning of objective-oriented work, thereby establishing
a sound basis for effective scheduling, controlling and re-planning in
the management of programs and projects.

• In other words, it provides an organization with powerful tools that
improve the organization's ability to plan, organize, implement and
control its activities and the ways it uses its people and resources.

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Project management with controlling techniques involving:

a) Time Control: normally applied with network scheduling (Critical Path Method) which provides
the best time control for the project. Other techniques such as Program evaluation and Review
Technique (PERT) allows the use of multiple time estimates for each activity.

b) Cost Control: Project control techniques, though not formalized to the same degree as time
controls, can be followed if these steps are followed:

i) Break the comprehensive cost summary into work packages
ii) Devise commitment reports for technical decision makers
iii) Act on early, approximate data
iv) Concentrate talent on major problems and opportunities

a) Quality Control: It comprises three elements:
i) Defining performance criteria
ii) Expressing the project objective in terms of quality standards
iii) Monitoring progress towards these standards

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Project Management and Controlling Techniques

ROLE top management to ensure the success of energy management

1. Publish a formal statement of its energy policy, which can be used to define company
activities in energy matters for its employees.

2. Involve/ participate in all energy committee meetings.
3. Empower those given with responsibility for implementing the energy management

program.
4. Ensure resources of manpower, budgets etc.
5. Encourage discussion on energy in Staff/employee meetings
6. appoint the energy manager and energy committee/team

Success is only attainable with the support of all departments,
at all levels, including top-level management

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HR development in Energy management system

Awareness training
 To motivate and raise staff awareness

Energy management training
 To make the management team understand the

principle and procedures of energy management
system and the role and responsible of related staff

Technical training
 To train the technical staff on the specific technology

or technique to improve energy efficiency.

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Methods and Tools for Energy Efficiency Promotions

1. Effective e-mail messages
2. Posters - Posters can contain different types of messages: news,

questions and command
3. Stickers - stickers can be used to target different equipment or

individual
4. Promotional materials -Include messages on promotional materials

such as diaries, calendars, cards, leaflets, brochures, mouse mats etc.
5. Staff newsletter/magazine
6. Incentives
7. Messages printed on pay slips
8. Competitions - Design a poster, an energy quiz , staff energy saving

ideas with a prize draw for entries , create slogans
9. Meetings and presentations - ideal forum for face-to-face

communication
10. Suggestion scheme - establish an award, prize or monetary incentive

for chosen suggestion

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Factors to a Successful Energy Awareness Campaign

 Management Commitment

 Top management shall:
 Define the energy policy and ensure that it is documented and
communicated at all levels within the organisation
 Communicate the importance of energy management to those in the
organisation
 Appoint a management representative to promote awareness of the energy
policy and objectives at all levels of the organisation

 Availability of Resources

 Top management shall:
 Provide the resources needed to establish, implement, maintain and improve
the energy management system and resulting energy performance
 Define an energy policy and ensure that it includes a commitment to ensure
the availability of information and of necessary resources to achieve objectives
and target

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Factors to a Successful Energy Awareness Campaign

 Targeted Approach
 The organisation shall:

 Identify the personnel working for or on behalf of the organisation that significantly affect energy use
and consumption

 Identify training needs associated with the control of significant energy users and the operation of its
energy management system

 Communication & Feedback
 The organisation shall communicate internally with regard to its energy performance and energy

management system as appropriate to the size of the organisation
 The organisation shall establish and implement a process by which any person working for, or on behalf of

the organisation can make comments or suggest improvements to the energy management system
 Maintain Momentum
 Top management shall conduct management reviews
 The management representative will ensure that the energy management system is continually improved.

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