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1. Introduction

2. What is an EnMS ?

3. Organisation Integration

4. Energy Management in Operational Function

5. Energy Strategies

6. Why have an Energy Management System ?

7. Continual Improvement Process

8. Efficiency Of Green Energy

9. Energy Management Techniques

10. Ever-Changing Renewable Energy

11. Duties of an Energy Manager

12. Conclusion

13. References

Energy management includes planning and operation

of energy production and energy consumption units. Objectives
are resource conservation, climate protection and cost savings,
while the users have permanent access to the energy they
need. It is connected closely to environmental
management, production management, logistics and other
established business functions.
“Energy management is the proactive, organized and
systematic coordination of
procurement, conversion, distribution and use of energy to
meet the requirements, taking into account environmental
and economic objectives”
One of initial steps for an effective energy cost control program
is the base line energy assessment, which examines the
pattern of existing energy usage by the government or any sub-
entity of the government or private organization. This program
will set the reference point for improvements in energy
2. What is an EnMS(Energy Management
System) ?

One of initial steps for an effective energy cost control program

is the base line energy assessment, which examines the
pattern of existing energy usage by the government or any sub-
entity of the government or private organization. This program
will set the reference point for improvements in energy
It basically provides a framework to :

 Develop a policy

 Set goals and targets

 Use data to make decisions

 Measure results

 Energy performace
3.Organizational Integration

It is important to integrate the energy management in the

organizational structure, so that the energy management can
be implemented. Responsibilities and the interaction of the
decision makers should be regularized. The delegation of
functions and competencies extend from the top management
to the executive worker. Furthermore, a
comprehensive coordination can ensure the fulfillment of the
It is advisable to establish a separate organizational unit
“energy management” in large or energy-intensive companies.
This unit supports the senior management and keeps track. It
depends on the basic form of the organizational structure,
where this unit is connected. In case of a functional
organization the unit is located directly between the first (CEO)
and the second hierarchical level (corporate functions such as
production, procurement, marketing).
In a divisional organization, there should be a central and
several sector-specific energy management units. So the
diverse needs of the individual sectors and the coordination
between the branches and the head office can be fulfilled. In
a matrix organization the energy management can be included
as a matrix function and thus approach most functions directly.

4. Energy Management in Operational Functions

As we have already discussed about the green energy management,

some of the operational functions are as follows :

 Facility Management

Facility Management is an important part of energy

management, because a huge proportion (average 25 per cent)
of complete operating costs are energy costs. According to
the International Facility Management Association (IFMA),
facility management is “a profession that encompasses multiple
disciplines to ensure functionality of the built environment by
integrating people, place, processes and technology.”
The most important key figure in this context is kilowatt-
hours per square meter per year (kWh/m²a). Based on this key
figure properties can be classified according to their energy

 Europe: In Germany a low-energy house can have a

maximum energy consumption of 70 kWh/m²a.
 North America: In the United States, the ENERGY
STAR program is the largest program defining low-energy
homes. Homes earning ENERGY STAR certification use at
least 15% less energy than standard new homes built to the
International Residential Code, although homes typically
achieve 20%-30% savings.

There are also buildings that produce more energy) over the
course of a year than it imports from external sources. These
buildings are called energy-plus-houses.

 Logistics

Logistics is the management of the flow of resources between

the point of origin and the point of destination in order to meet
some requirements, for example of customers or corporations.
Especially the core logistics task, transportation of the goods,
can save costs and protect the environment through efficient
energy management. The relevant factors are the choice of
means of transportation, duration and length of transportation
and cooperation with logistics service providers.
The logistics causes more than 14% percent of CO2 emissions
worldwide. For this reason the term Green Logistics is
becoming increasingly important.
Possible courses of action in terms of green logistics are:

 Shift to 6ehavioural6 transport carrier such as railroad and

 Route and load optimization
 Formation of corporate networks, which are connected by
logistics service
 Optimizing physical logistics processes by providing a
sophisticated IT support

Besides transportation of goods, the transport of persons

should be an important part of the logistic strategy of
organizations. In case of business trips it is important to attract
attention to the choice and the proportionality of the means of
transport. It should be balanced whether a physical presence is
mandatory or a telephone or video conference is just as useful.
Home Office is another possibility in which the company can
protect the environment indirectly

 Energy Procurement

Procurement is the acquisition of goods or services. Energy

prices fluctuate constantly, which can significantly affect the
energy bill of organizations. Therefore poor energy
procurement decisions can be expensive. Organizations can
control and reduce energy costs by taking a proactive and
efficient approach to buying energy. Even a change of the
energy source can be a profitable and eco-friendly alternative.

 Production
Production is the act of creating output, a good or service which
has value and contributes to the utility of individuals. This
central process may differ depending on the industry. Industrial
companies have facilities that require a lot of energy. Service
companies, in turn, do not need many materials, their energy-
related focus is mainly facility management or Green IT.
Therefore the energy-related focus has to be identified first,
then evaluated and optimize.

 Production planning and control

Usually, production is the area with the largest energy

consumption within an organization. Therefore also the
production planning and control becomes very important. It
deals with the operational, temporal, quantitative and spatial
planning, control and management of all processes that are
necessary in the production of goods and commodities. The
“production planner” should plan the production processes so
that they operate in an energy efficient way. For example,
strong power consumer can be moved into the night time.
Peaks should be avoided for the benefit of a unified load profile.
The impending changes in the structure of energy production
require an increasing demand for storage capacity. The
Production planning and control has to deal with the problem of
limited storability of energy. In principle there is the possibility to
store energy electrically, mechanically or chemically. Another
trend-setting technology is lithium-based electrochemical
storage, which can be used in electric vehicles or as an option
to control the power grid. The German Federal Ministry of
Economics and Technology realized the significance of this
topic and established an initiative with the aim to promote
technological breakthroughs and support the rapid introduction
of new energy storage.
 Maintenance

Maintenance is the combination of all technical and

administrative actions, including supervision actions, intended
to retain an item in, or restore it to, a state in which it can
perform a required function. Detailed maintenance is essential
to support the energy management. Hereby power losses and
cost increases can be avoided.

 Energy Management Challenge

Energy is the most important resource for progress and growth

of the country. Pakistan is energy deficient country trying its
best to come out of energy crisis. Through the energy efficiency
it management is remain the key for the any industrial user
across globe , to achieve the energy management goal for the
federal government or industry the efficiency of water and
energy resources play a vital role

Examples of how it is possible to save energy and costs with

the help of maintenance:

 Defrost the fridges

 Check the barometer of cars and trucks
 Insulation of hot systems
 Improve leaks in building envelopes

5. Energy Strategies
A long-term energy strategy should be part of the overall
strategy of a company. This strategy may include the objective
of increasing the use of renewable energies. Furthermore,
criteria for decisions on energy investments, such as yield
expectations, are determined.

By formulating an energy strategy companies have the

opportunity to avoid risks and to assure a competitive advance
against their business rivals.

 Potential energy strategies

According to Kals there are the following energy strategies:

 Passive Strategy: There is no systematic planning. The issue of

energy and environmental management is not perceived as an
independent field of action. The organization only deals with the
most essential subjects.
 Strategy of short-term profit maximization: The management is
concentrating exclusively on measures that have a relatively
short payback period and a high return. Measures with low
profitability are not considered.
 Strategy of long-term profit maximization: This strategy includes
that you have a high knowledge of the energy price and
technology development. The relevant measures (for
example, heat exchangers or power stations) can have durations
of several decades. Moreover, these measures can help to
improve the image and increase the motivation of the employees.
 Realization of all financially attractive energy measures: This
strategy has the goal to implement all measures that have a
positive return on investment.
 Maximum strategy: For the climate protection one is willing to
change even the object of the company.

 Energy strategies of companies

Even many countries formulate energy strategies. The Swiss Federal
Council decided in May 2011 to resign nuclear energy medium-
dated. The nuclear power plants will be shut down at the end of life
and will not be replaced. In Compensation they put the focus on
energy efficiency, renewable energies, fossil energy sources and the
development of water power.
The European Union has clear instructions for its members. The “20-
20-20-targets” include, that the Member States have to reduce
greenhouse gas emissions by 20% below 1990 levels, increase energy
efficiency by 20% and achieve a 20% share of renewable energy in
total energy consumption by 2020.

 Ethical and normative basis of the energy


The basis of every energy strategy is the corporate culture and the
related ethical standards applying in the company. Ethics, in the
sense of business ethics, examines ethical principles and moral or
ethical issues that arise in a business environment. Ethical standards
can appear in company guidelines, energy and environmental
policies or other documents.
The most relevant ethical ideas for the energy management are:

 Utilitarianism: This form of ethics has the maxim that the one acts
are good or right, whose consequences are optimal for the
welfare of all those affected by the action (principle of maximum
happiness). In terms of energy management, the existence of
external costs should be considered. They do not directly affect
those who profit from the economic activity but non-participants
like future generations. This error in the market mechanism can
be solved by the internalization of external costs.
 Argumentation Ethics: This fundamental ethical idea says that
everyone who is affected by the decision, must be involved in
decision making. This is done in a fair dialogue, the result is
completely uncertain.]
 Deontological ethics: The deontological ethics assigns individuals
and organizations certain obligations. A general example is
the golden rule: “One should treat others as one would like others
to treat oneself.” Therefore everyone should manage their duties
and make an energy economic contribution.

6. Why have an Energy Management System?

An “Energy Management System” is a series of computer-

aided tools and meters designed to monitor, control, and
optimize the electricity consumption of your organization.
Energy management systems are just as effective for small
businesses as they are for multinational corporations, and they
simply offer too many benefits to ignore.
Here are just three reasons why your company should use
energy management systems.

 Access to Real-Time Data

Information is power, and a professionally-installed energy

management system will give you all the information you could
possibly need in regards to your impact on the power grid. View in
real-time how much energy is being used for your different business
operations, and identify areas of inefficiency. The power meters
manufactured at Electro Industries also 13ehavio power quality,
helping you optimize your load and prevent downtime.

 Improve Profit Margin

With access to all of this information, you can quickly and easily see
where there is room for improvements. Once you identify these
areas, you can begin to develop and implement a power-savings
program for your company, and continue using the power meters
and submeters to track the progress of your efforts. With continuous
monitoring and improvements, there is almost no limit on how much
you can reduce your operating costs and increase your profit margin.

 Reduce Carbon Content

Cutting back on your energy consumption can not only help you save
money, it can help save the environment. In a time where so many
companies are making an effort to go green, hopping on the
bandwagon can only help. Every company wants to be viewed in
good light by the public, and being socially responsible can reinforce
this positive image to your shareholders.

 Support Long term Strategy

In a global economy, sustainability has become an essential part
of business strategy. Leading organizations worldwide understand
that sustainability is a key factor in lowering costs, opening new
markets and driving efficiency and innovation throughout an
organization. A cornerstone of sustainability is pollution
prevention, or P2. Through the effective implementation of P2
and Energy Efficiency (E2) strategies, businesses can incorporate
sustainability into day-to-day operations in ways that promote
long-term cost savings and improved environmental performance.
Successful implementation of pollution-prevention and energy-
efficiency initiatives are often a direct result of an organization’s
ability to identify and assimilate relative information, recognize
the relationship of environmental performance to the business
model and focus existing systems and resources towards specific

7. Continual Improvement Process

PDCA (plan-do-check-act, sometimes seen as plan-do-check-adjust)
is a repetitive four-stage model for continuous improvement (CI) in
business process management.

The planning phase involves assessing a current process, or a new process, and
figuring out how it can be improved upon. Knowing what types of outputs are
desired helps to develop a plan to fix or improve the process. It is often easier
to plan smaller changes during this phase of the plan so that they can be easily
monitored and the outputs are more predictable. Establish the objectives and
necessary to deliver results in accordance with the expected output (the target
or goals).


The do phase allows the plan from the previous step to be enacted.
Small changes are usually tested, and data is gathered to see how
effective the change is.


During the check phase, the data and results gathered from the do
phase are evaluated. Data is compared to the expected outcomes to
see any similarities and differences. The testing process is also
evaluated to see if there were any changes from the original test
created during the planning phase. If the data is placed in a chart it
can make it easier to see any trends if the PDCA cycle is conducted
multiple times. This helps to see what changes work better than
others, and if said changes can be improved as well.
Example: Gap analysis, or Appraisals


If the check phase shows that the plan phase which was
implemented in do phase is an improvement to the prior standard
(baseline), then that becomes the new standard (baseline) for how
the organization should act going forward (new standards are thus
said to be enacted). Instead, if the check phase shows that the plan
phase which was implemented in do phase is not an improvement,
then the existing standard (baseline) will remain in place. In either
case, if the check phase showed something different than expected
(whether better or worse), then there is some more learning to be
done… and that will suggest potential future PDCA cycles. Note that
some who teach PDCA assert that the act phase involves making
adjustments or corrective actions, but generally it would be counter
to PDCA thinking to propose and decide upon alternative changes
without using a proper plan phase, or to make them the new
standard (baseline) without going through do and check steps.

8. Efficiency of Green Energy

 Energy Efficiency also Needed to Combat Climate Change,

Clean the Air and Save Money
Every year, energy is wasted through transmission, heat loss, and
inefficient technology —costing families and businesses money and
leading to increased carbon pollution and climate change. Energy
efficiency is one of the easiest and most cost-effective ways to
combat climate change, clean the air, and save consumers and
businesses money.

There are Many Options to Achieve Greater Energy Efficiency

Energy efficiency can be achieved by:

 Using energy-efficient devices for lighting, space cooling and

heating, refrigeration, and so forth;
 Designing our buildings and landscapes better (such as shade
 Changing our 18ehaviour (such as turning off the lights when we
leave a room); and
 Improving system operations to optimize many functions within
a house, business, city, or other location and reduce energy
usage as a result. These systems may employ real-time feedback
or automated controls, for example.

Adopting local, state or federal policies and programs can greatly

increase energy efficiency. Policy and program options include:

 Building codes or other standards that establish baseline energy

efficiency for products that may be sold or used within a
jurisdiction. For example, requiring LED lights or minimum
efficiency standards for new homes.
 Inclusion of energy efficiency standards in municipal climate
change or sustainability plans. Many local governments have
prepared climate change or sustainability plans, some of which
include action items that reduce energy consumption through
efficiency measures.
 Programs to promote energy efficiency. Some community-based
organizations, utilities, and/or governments implement
programs to educate consumers about energy efficiency and, in
many cases, install or incentivize energy efficiency measures for
residential or business consumers.
 Businesses, governments or organizations establishing energy
efficiency policies.Businesses, governments, or other
organizations may establish their own internal energy efficiency


When energy use is deliberately monitored, controlled, and

conserved, decreases in utility consumption and overall costs can be
realized without sacrificing facilities operations. Such energy
management techniques can take on many shapes and sizes.
Following are strategies facility management executives can use to
increase efficiency while overcoming potential costly challenges.

1. Actively manage real-time energy use. Proactive, real-time

data management can expose a wide range of unknown
challenges associated with occupancy, building use, and peaks
in utility usage. For example, my firm, Southland Energy,
installed a comprehensive metering system for a data center
customer, monitoring everything from air and water flows, to
very specific details of the data center. The real-time data
allowed the building operators to identify potential issues
instantaneously, implement corrective actions to prevent critical
shutdowns, and manage loads before they affected the entire

2. Actively manage what is measureable. Use advanced

metering and energy management systems (EMS) to capture
real-time data, ensure its accuracy and, in turn, address
specific issues. For example, a K-12 school installed an energy
dashboard that managed the overall facility while actively
engaging faculty and students. The customer could view how
the systems were operating and how much they were saving
based on their actions and system improvements.

In instances where building owners have utility monitoring

equipment but no collection or processing software, the meters
or monitoring equipment become stranded assets. This is
because millions of data points have to be gathered and
processed manually, multiple times during the year. A
sophisticated metering system equipped with the proper EMS
software will automatically collect, process, and format these
data points in real time, if not hourly. The ability to process
these useful data points into an easy to use format improves
the overall system effectiveness and functionality.

3. Actively manage energy consumption. Use collected data

to build a strategy that manages costs and consumption on a
daily, weekly, monthly, and annual basis. Southland Energy
worked with an industrial customer to evaluate multiple peak
demand reduction strategies. Load shifting and demand limiting
systems were implemented to limit customer loads during peak
hours and reduce costs.

Limiting peak demand consumption offers additional benefits

that are not always easy to identify or claim. For example,
during peak hours, utilities run “peaker plants” to meet
demands from the grid. However, these plants are often older
and less efficient electricity generation plants, with the sole
purpose to run periodically to meet demand. Reducing peak
demand during summer months saves electricity costs and
overall greenhouse gas emissions per Kw.

4. Have a holistic plan. Without clear direction and an action

plan, it is difficult to make a meaningful impact beyond the “low
hanging fruit.” A holistic plan is critical to leverage overall
savings and provide a mix of improvements for substantial
results. Facility leaders often benefit from a holistic plan that
bundles low hanging fruit such as lighting and building
automation measures with longer paybacks such as renewable
energy. This evaluates all possible savings including water,
waste, energy, and system/facility reliability to package the
appropriate measures for the facility’s goals and financial

5. Secure leadership buy-in and support. Real, holistic

changes will not be attainable without direct involvement and
support from leadership. It is critical to engage leadership and
key decision makers that impact the financials of facility

6. Negotiate. Negotiate supply contracts with third-party

marketers to reduce energy costs. Southland Energy has
worked with several customers on energy specific solutions and
identified opportunities to help them negotiate utility rates
efficiently. The firm worked with a condominium high-rise
customer and was able to negotiate a 5% reduction of utility
rates, while also evaluating improvement measures. These
results can be achieved when we know historical consumption
and have accurate projections for consumption; take advantage
of available curtailment, arbitrage, and/or demand response
programs; and issue pricing RFPs to multiple suppliers to
ensure best market value.

7. Take risks. Major changes that drastically reduce

consumption can require difficult steps and decisions, but
reward outweighs risk if changes are properly managed. The
ability of a trusted advisor to leverage in-house capabilities
coupled with a strong commitment to change helps alleviate the

8. Establish an occupant 22ehavioural awareness

program. Technology implementation and building retrofits are
only part of the equation. Occupants have a big impact on a
building’s efficiency and investments made. Education is key to
the 22ehavioural process, and empowering occupants with
knowledge and resources will help increase energy savings as
they can realize the impact through efficiency or financial gain.

10. Ever-Changing Renewable Energy

The renewable energy landscape is dynamic and ever-changing;
consisting of unique market participants such as:

 Renewable Energy Developers

 Green Energy Providers
 Sustainability Focused Corporate Entities

Renewable Energy Developers

As a wind, solar, hydro, landfill gas, anaerobic digestor or biogas
independent power producer ("IPP") or renewable developer, in
addition to traditional commodities like power and capacity, your
power portfolio generates both environmental commodities such as:

 Renewable energy credits ("RECs")

 Solar renewable energy credits ("SRECs")
 Carbon credits

GP Energy management is works to optimize and managing these

revenue streams through a variety of structures such as:

 Power purchase agreements ("PPAs")

 Virtual power purchase agreements (“VPPAs”)
 REC off-take agreements
 Bundled contracts that include both power, capacity and RECs
for both long and short-term tenors.

Green Energy Providers

With the growth of state-level renewable portfolio standards ("RPS")
competitive electricity suppliers (also known as LSEs, ESCOs, ARES,
CRES, or REPs) are compelled more than ever to purchase annual
RECs to achieve these state level standards and remain compliant.
Those ESCOs looking to go above and beyond the minimum standard
oftentimes offer voluntary green products such as 100% renewable
energy, frack-free gas, clean power, clean gas, or carbon-free gas.
GP Energy Management sources the proper products at the right
price to satisfy both a retailer’s compliance and voluntary needs.

Sustainability Focused Corporate Entities

With the proliferation of corporate sustainability goals a new
segment of clean energy and green energy buyers have emerged.
Looking to foster the creation of new renewable energy to adhere to
additionality standards, commercial and industrial corporations are
aggressively exploring virtual ppas, REC purchases, and onsite
renewable development.

GP Energy Management leverages it’s power, gas, and renewables

expertise in both the wholesale and retail energy markets to create
and execute customized corporate sustainability strategies. Whether
its building onsite solar, executing a long-term virtual PPA with a
nearby wind power plant, or simply buying green power or green gas
supply in a deregulated market, GP empowers its corporate clientele
to achieve their sustainability goals in an economically and
philosophically sound manner.

11. Duties Of An Energy Manager

As an energy manager, you'll need to :

 develop, coordinate and implement strategies and policies to

reduce energy consumption
 encourage the use of renewable and sustainable energy
resources within an organisation or community and raise the
profile of energy conservation
 develop solutions for carbon management
 create policies and systems for buying energy and helping with
contract negotiations
 provide technical and practical advice and offer training on
energy efficiency
 develop promotional activities and materials to publicise
particular schemes
 liaise and negotiate with contractors, the building supplies
industry, council services and other relevant organisations
 keep accurate records and regularly collect energy monitoring
 carry out site inspections and energy surveys
 benchmark energy consumptions against best practice
 keep up to date with legislation such as the EU Emissions
Trading System (EU ETS).

Energy management is the practice of using energy more efficiently
and effectively in an organization’s operations. Energy is a valuable
resource and a cost which can be controlled when managed
efficiently and effectively. Energy management provides an
opportunity to optimize energy costs by understanding energy flow
as well as procurement and economics of energy, and reduce its
harmful impact on our environment. It is an ongoing process and
must be reviewed at regular intervals and fine tuned as required,
from time to time.