Business appearance & professional etiquette- basics of image building
Introduction to energy management system
1. Seminar on
Efficient Management of Electrical Energy Regulations 2008
ENERGY MANAGEMENT SYSTEM (EMS):
DEVELOPMENT AND
IMPLEMENTATION
Zaini Abdul Wahab
ENERGY COMMISSION
24th November 2010
2. THE AIM
• For organizations to establish the systems and
processes required to improve energy
performance, including energy efficiency and
intensity which will contribute to reduction of
costs through systematic means in energy
management in all types of organization
3. Sustainable Energy Management
• The process of managing the energy use in the
organization to ensure that energy has been
efficiently use by adopting energy
management system to achieve desired results
and for continual improvement
• Covers all aspects of energy and involving the
people and equipment in the daily operation of
the plant
4. Energy Management
All activities to ensure
efficient use of energy
in the organization
• One of management resources of a
company
• Required due to its influence to operation
and activities
5. Standards For Energy Management
• MS 1525:2001 Code Of Practice On Energy
Efficiency And Use Of Renewable Energy For
Non-Residential Buildings
• Green Building Index
• ISO 50001 (Energy Management System)-soon to
be introduced
• VDI Standard 4602( Energy Management)
• DIN ISO 9001 (Quality management)
• DIN ISO 14001 (Environmental Management)
6. Key Factors To Implement
Energy Management
External
Factors
INTERNAL FACTORS
7. INTERNAL FACTORS
Reduce energy costs
Improve competitiveness
Apart of key performance indicators at all level
Reduce service and maintenance costs
Improve production and working conditions
Improve operational safety
Costs transparency
Improve corporate image
Contribute to environmental and climate protection
8. EXTERNAL FACTORS
Regulatory compliance
Market demand for green/
environmental related policies/practices
Certifications and standards requirements
Government funding
Uncertainty and increase in energy prices
9. Key Players And Their Typical
Interests
Corporate/Top management Smooth operation
Compliance with budget
Profit and loss accounts
Production manager Product quality and delivery dates
Optimization of production costs
Reliability of production facilities
Purchasing manager Improvement of purchasing
conditions/procedures
Best/optimal prices
Facilities operators Reliability of operation and maintenance
Low defect/damage potentials
Supply Engineering Manager Reliability of supplying facilities
Optimization of energy cost
External facility constructor Sale of facility at high prices
Client’s satisfaction
External consultant Maintain the contract
Identification of potential improvements
Client’s satisfaction
10. Dealing With Key Players
• A huge challenge TOP Introduce energy
for the energy MANAGEMENT management
manager to system
convince every PRODUCTION Reduce
key player to MANAGER compressed
consider and pressure
implement PURCHASING Procure energy
energy measures MANAGER efficient
in line of their equipment
duties ENGINEERING Install variable
MANAGER speed drives
11. Energy Management Process
1. FACTS FINDING
•Existing Data& Information
•Measurements & Recording
•Energy Audit
2. PLANNING AND SET TARGETS
• Target Definitions
• Specific Item For Energy Management
• Select Largest Energy Users
With Strongest Link To Energy Costs
3. MANAGING ENERGY INTENSITY
• Improvements
• Evaluation to reduce cost
and improve profit
13. WHY IS EMS NEEDED?
• To achieve SUSTAINABLE ENERGY MANAGEMENT
To ensure sustainability if energy efficiency initiatives with
changes in the organization, personnel and etc.
• To ensure compliance towards regulatory requirements
• Energy cost affect company profitability
• energy costs which affect the competitiveness in the world market
• national energy supply/demand balance
• national trade and financial balance
• local and global environments
• occupational safety and health
• loss prevention and waste disposal reduction
• productivity and quality
14. Components In EMS
System Component Resources ( manpower, hardware
and software
1. Energy Management Policy Trained personnel
2. Organizing Budget
3. Planning And Implementation Building Management/Automation
4. Evaluation System
5. Review Result For Continual Measure, control and monitor equipment
Improvement Monitor Utility Meters
• Measure Temperatures, Relative
Humidity, Pressure, CO2, etc.
• Monitor status of equipment – ON/Off or
Open/Closed
• Digital Control to start and stop
equipment
• Analog control to adjust set point values,
Control Valves, Dampers and Variable
Frequency Drives
15. EMS Cycle
ENERGY
MANAGEMENT •Commitment from the top management
POLICY •SMART policy
•Setting and sharing common goals
PLAN
•Organization and
responsibilities ORGANIZING
•Energy Manager
•Allocation of
resources
ACTION DO
REVIEW FOR
PLANNING AND
CONTINUAL
IMPLEMENTATION
IMPROVEMENT
CHECK •Management Implementation
•Management Review to confirm plan and time frame
Suitability, Adequacy •Energy auditing
& Effectiveness EVALUATION •Set baselines for measuring
•Review targets results
•Communicate the progress •Designation of responsibilities
•Actions to be taken •Procedures and standards
•Reporting and presenting •Measurement and verification •Trainings
•Monitoring
16. ENERGY MANAGEMENT POLICY
• Indicates commitment from the top management
• Set and share the same objectives and targets from the
policy
• Committed to treat all energy related departments and
processes
• Commit the organization to continual improvement in
energy performance through policy framework for
setting energy objectives and targets and regularly
reviewed
17. ORGANIZING
• Indicates commitment to take actions
• Establish an organization for energy management and
define responsibilities
Energy management team/committee, organization chart
• Allocate of resources
Budget, personnel, equipment
• Appoint an energy manager
• Understand and define the roles and responsibilities
of energy manager
18. Roles Of An Energy Manager In EMS
1. Key person in a sustainable energy management system
2. Maintaining facilities for energy consumption
3. Improving & supervising energy usage
4. Conducting and coordinating all activities for energy conservation
5. Assistance in energy related contracts or equipment purchasing
6. Identify initial and on-going training and developments needs for
energy management team members
7. Submit regular reports to corporate management on energy
consumption trends, load development, energy saving results and
potential areas can be improved
8. Ensure compliance towards regulatory requirements
19. PLANNING AND IMPLEMENTATION
Establish and maintain energy management action plans
to achieve its objectives and targets:
Designation of responsibility;
Set baseline to measure results
The means and time frame by which individual targets are to
be achieved; and
A statement of the method by which improvement in energy
performance will be verified-procedures/management
standards
Energy auditing
The energy management action plans must be documented,
and updated at from time to time
To identify personnel and trainings needed to ensure
sustainability of the measures
20. Examples Of Targets System
Category Examples of target Type
Highest Optional
priority
Organizational Formulate company’s energy policy X
Appoint energy manager X
Introduce scheduled reporting X
Economic Reduce annual energy cost by 10% X X
Introduce energy performance indicators X
Introduce and related cost center
Technical Use high efficiency equipment X
efficiency Control pressure/temperature levels X
Load optimization for machinery X
Behavioral Raise staff awareness level X X
Training and education measures X
Carry out campaign programs
21. EVALUATION
• To evaluate and verify results from
measures taken
To perform measurements for each parameter that
is required for energy saving measurements and
calculations.
To quantify energy saved from each energy saving
measure
22. REVIEW RESULTS FOR
CONTINUAL IMPROVEMENT
Analysis of operability of the operational and organizational
structure (at least once in a year)
Review of the energy performance indicators (energy intensity)
that will be used to communicate the progress of energy
performance to the organization
Comparison of target and actual value of
The operational energy use
Energy saving measures
Management Review to confirm
Suitability, Adequacy & Effectiveness
Actions to be taken based on results
23. Reporting And Presenting Results
Intra-company instrument for information
and consultancy
Frequency-depending on energy intensity (the
shorter the report interval, the higher
potential to discover deviation)
24. Annual Energy Report
1. Documentation of contracts 7. Trend and progress of energy use
data - Business sector
- Key energy figures (energy
2. Target criteria of energy status intensity/benchmark)
to be checked
8. Trend and progress of energy costs
3. Energy Management
– Target and measures 9. Display of energy flow-energy
balance sheet/chart
– Responsibilities
– Operational structure
11. Results of energy analysis – explain
deviations
4. Information on measurement
techniques and method used 12. Comparison of target and actual
state of energy saving program
5. Trends and progress
– production and process output 13. Results-Analysis of organizational
– Total energy consumption and technical weaknesses,
assessment of results and
recommendation of measures for
future improvement
27. ENERGY MANAGEMENT & IMPROVEMENT CYCLE
DECLARE POLICY Identify Problems
Set Target
ESTABLISH INTERNAL & Values
ORGANIZATION
Plan Saving
Measures
UNDERSTAND CURRENT
Improvement Cycle
ENERGY USE Implement
Measures
Daily Management Cycle
CREATE PROCEDURE/ Verify results &
STANDARDS Evaluation
Standardize &
MANAGE ENERGY synchronize result
INTENSITY
with procedures
Review& Set
Higher Targets
28. Declare Policy
• Declare and introduce energy
management policy
• Create awareness on energy management
system and planned energy management
programs
29. Establish Internal
Organization
• Permanent Organization
Committee - centralized
Working groups- section/department
• Energy manager(the driver!)
• Team members
• Initial and continuous development program for
team members
30. Understand Current
Energy Use (Data)
• Obtain current energy data by measurement, calculation or
estimation for the individual operation units
• Classification of types of energy (fuels types, utility types, etc.)
• Regularly gathered and summarized (daily, weekly, monthly,
annually)
• Check past historical trend and interpret with relation to
operational modes and production scales
• Compare data with the best practice data or benchmarks in the
industry to plan a realistic energy management plan
• Utilized for the forecast of future trends
31. Understand Current
Energy Use (Management)
• Identify management strength and weakness
• Analyze the needs of stakeholders
• Anticipate barriers to implement such as insufficient:
support by top management
cooperation of managers within factories
awareness of people to get successful results
capability of people due to lack of training
available technology due to lack of information
availability of manpower and budget for energy management
activities
32. Create Procedure/
Standards
• Procedures and standards to be
referred for implementation
Person in-charge
Type of energy to be measured
Frequency of measurement
Measuring devices
Ways of energy consumption record (table,
chart)
Operation standard values/guideline (range of
temperature/energy intensity)
33. Procedures/Management Standards
Operation and maintenance standards
• To ensure rapid maintenance when energy waste is involved
• Physical checks on steam leaks, compressed air , failed steam traps, or
even un-insulated pipes until they are repaired
Standard for monitoring:
• Introduce regular measurements and logging of these measurements for
all parameters related to equipment energy consumption and
performance
Energy efficient design standards
• Minimum level efficiency standards can be incorporated for each
equipment and system
Equipment efficiency standards
• To purchase only equipment that meets certain minimum standards of
efficiency only
35. Manage Energy Intensity
• To enable to find out the problem easier and to take
measures to solve it
Energy intensity is easier to be used to evaluate the
result from improvement
To compare with before improvement.
Widely accepted in the management of energy
• Collect data to calculate energy intensity and produce
data in visual forms
• Check “alright” and deviations/defects
• For deviations/defects
Compare with standards
Check any damage in equipment/process line
Control the operation/maintenance
• For “alright”- start improvement step
• Management in small unit( facility /machine) is more
suitable for improvement of energy intensity than in
larger unit( whole plant)
36. Energy Intensity
FOR FACTORIES
Energy consumption amount divided by production amount
Energy-Production Relationships
Specific Energy Consumption (SEC)
Applicable for the whole plant/process line/equipment/machine
Energy consumption amount - In electric power (kWh)/heat (J) or
by individual particular unit
Production amount – Unit in weight (tonnage) or
number of products and etc.
FOR BUILDINGS
• Building Energy Index, BEI (kWh/m2)
• Overall BEI
• Air Conditioned Area Energy Index
• Lighting Energy Index
• Energy use per occupant
37. Examples Of Energy Intensity
Benchmark/Baseline Parameters
Production related Equipment
• kWh/T cement produced • kW/ton of refrigeration
(cement plant) (Air cond. Plant)
• kWh/MT, kCal/kg paper • % thermal efficiency
produced (paper plant) (boiler plant)
• kWh/kg yarn produced • kWh/NM3 compressed air
(Textile) generated
• Million kilocals/MT Urea
or Ammonia (Fertilizer)
38. Identify Problems
• Identify efficiency problems to be
improved
• From historical and existing energy
performance data
You know your place
better than anyone else!
39. Set Targets And Values
• Set intended targets and its values
• To achieve projected savings
• A GOOD Rule – Start small!
Type of target Description
Absolute energy Absolute reduction in energy consumption (kWh, GJ,
saving Btu)
Goal – percent reduction in total energy consumption
Monetary Reduction in total energy costs in RM
Unit energy Indicated by specific energy consumption or energy
efficiency index in unit or percentage
40. Plan Saving Measures
Plan energy performance improvement and saving
measures
Identify and prioritize energy saving measures
Time duration for implementation
to determine other requirements to implement
measures such as external expertise, equipment
and etc
to indicate feasibility and financial viability
41. Implement Measures
• Implement planned measures
• To reduce energy consumption and energy
cost and it can be managed by whole plant,
process/production line, individual facility
(machine)
• Improvement of efficiency level
Resetting, adjustments
Controls
Minor repairs and changes
(no cost and low cost measures)
• Use new technologies
Require investment and economic evaluation
(high cost measures)
42. Verify Results And
Perform Evaluation
• To be shown in energy intensity
• Easier to evaluate results of
operational/technical improvement to be
compared against before-improvement
43. Standardize Synchronize Results
With Management Standards
• Standardize results and
synchronize with
management
standards/procedures
that has been established
44. Review And Set Higher Targets
• Review actual results achieved and
challenges faced in the implementation
• Identify areas to be improved
• Discuss and set higher targets
• Report to the top management
• Publish results and improvement program
45. Internal Initiatives To Implement
Energy Saving Measures
TOP TO DOWN ACTIVITIES
•Deployment of policy
•Continuous improvement
•Daily management
ENERGY MANAGEMENT
•Observation
•Control
•Improvement
BOTTOM-UP ACTIVITIES
•Quality control cycle
•System to gather ideas/suggestions
•Small group
46. SMALL ENERGY WORKING GROUP
(SEWG)
Energy is everywhere and used by everyone at the
workplace- suitable for Total Quality Management
To utilize ability of workers with incentive for workers
and top management
All persons in the plant join improvement activities
Hierarchical/stratified organization mixed with cluster
or small groups
Activity contains “top-down” and “bottom- up”
activities
47. Evolution Of SEWG
WORKERS TEAM
(with advice
from engineers/
IDEAL energy manager
ENGINEERS +
ADVANCED WORKERS
TEAM OF
STARTING ENGINEERS
48. Key success factors
from SEWG activities
Selection of leader – Leadership
Assignment of each role for all team members
Support from top management
expectation
budget
rewards-to create sense of accomplishment among
workers
Technical competency of each team member
Communication and ability to resolve conflict
49. Forming a SEWG
Establish and organizing a group
• Member : 5-10
• Leader : Elected
Establish theme and target
• Focusing on problems at their own area/workplace
Meeting
• To agree on the frequency and agenda to discuss
Data collection, improvement and evaluation
• Collect data on their own/receive data from the company/energy
manager
• Compile and produce data in visual, identify the problem and
propose measures by themselves
• Implement measures (with permission from the engineer) and
evaluate the results
50. How to activate SEWG?
• A leader, members and management feel activities
are attractive
Members feel a sense of accomplishment
• Challenge
• Effort
• Reconsideration
• Achievement
Roles of manager for accomplishment
• Motivate
• Guide
• Support
• Evaluate
• Award
Targeting and scheduling is very important
51. Promoting SEWG
THE MANAGEMENT
Top Management, Heads of Department/Section
Introduction and operation of EMWG at the plant
Arrange framework to promote EMWG
Promotion of energy saving activities by EMWG
Define a boundary/reaching point
Secure resources and provide education and
training
Energy EMWGs
Manager 1. Define roles
(Consultation 2. Plan goal and annual schedule
and to 3. Prepare and conduct meeting
provide 4. Follow up actions resulted from
with information needed) meeting
5. Record activities and results
6. Prepare reports and present results
7. Learn from best practices