IMPLEMENTATION OF ENERGY MANAGEMENT SYSTEM TO IMPROVE ENERGY EFFICIENCY
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The document outlines the implementation of an energy management system (EMS) aimed at enhancing energy efficiency in green buildings and parks. It emphasizes the benefits of EMS for building owners, such as reduced operating costs and increased property values, while highlighting the importance of top management engagement for success. The document also discusses barriers to energy efficiency, necessary steps for starting an EMS, and best practices for integrating it into organizational operations.
IMPLEMENTATION OF ENERGY MANAGEMENT SYSTEM TO IMPROVE ENERGY EFFICIENCY
- 1. IMPLEMENTATION OF ENERGY MANAGEMENT SYSTEM TO IMPROVE ENERGY EFFICIENCY Green Buildings & Parks World 2015 By ZAINI ABDUL WAHAB Energy Management System Consultant CONNECSYS SDN BHD 5th August 2015 InterContinental Hotel, Kuala Lumpur
- 2. Overview of Energy Efficiency(EE) business trends,potentials & approaches How to start How to implement & Key success factors What’s next? Outline
- 4. Building owners can see reduced operating costs, increased building values, greater return on investment, and higher occupancy from new and retrofitted green buildings UNEP - GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector Companies may receive reputational benefits from achieving green building certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business whose facility is certified as green, while 48% indicated that green certification of a facility improves their image of a company. University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices UN Global Compact of 766 CEOs worldwide-93 % of CEOs said sustainability issues will be a critical factor to the future success of their business 2012 Ernst & Young Survey – 66% of executives saw an increased amount of sustainability-related inquiries from investors in the past year. 70% inquiries focused on energy management and greenhouse gas emissions & more than ½ questions about sustainability reporting Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year. IS ENERGY EFFICIENCY AN OPTION OR A MUST DO NOW?
- 5. Energy Supply & Utilization ASSET RESPONSIBILITY PERIOD Energy affects most of the life cycle of assets Energy costs affected by the fluctuating global primary energy market prices – mainly from fossil fuels – depleting resources
- 6. HOW ENERGY CAN BE SAVED AT BUILDINGS? Buildings’ energy savings potential can range from 3-41% Source: www.energymanagertoday.com
- 7. ALTERNATIVE ENERGY SOURCES High costs ENERGY EFFICIENT TECHNOLOGY SOLUTIONS Medium-high costs Require financial & investment risks assessments SAVE THROUGH BEST PRACTICES & CULTURAL CHANGE – ENERGY MANAGEMENT Low-no costs MORE POLICIES & SUPPPORT MEASURES REQUIRED FROM THE GOVERNMENT TO ENCOURAGE INVESTMENTS FROM PRIVATE SECTOR
- 8. Factors impeding the uptake of energy efficiency opportunities Source: www.climateworksaustralia.org
- 9. LOW PRIORITY VS. CORE BUSINESS FUNDING THROUGH LOANS/DEBTS FOR EE PROJECTS WILL IMPAIR “CREDIT CAPACITY BENEFITS ARE TOO SMALL TO APPEAR ON TOP MANAGEMENT’S RADAR SCREEN NOT CONVINCED ON ACTUAL COST SAVINGS ACHIEVED Barriers to energy efficiency among the top management groups
- 10. Inefficiencies in the business can go unnoticed Lost opportunities to improve energy use & reduce carbon emissions- may not be acted upon Unnecessary energy expenditure erodes profits & performance
- 11. HOW TO START AN ENERGY MANAGEMENT PROGRAM AT YOUR COMPANY?
- 12. Energy supply/security issues for business continuity Rising energy prices Market (customers & investors) expectations on energy & greenhouse performance Employee expectations Local community concerns Legal requirements Government funding and tax benefits Maintenance, reliability & other operational issues #1. CONFIRM BUSINESS DRIVERS
- 13. Typical manufacturing companies* can improve their profit margins by 2% within 3 years #2. CONFIRM SUBSTANTIAL DIRECT & INDIRECT SAVINGS(ENERGY & NON ENERGY COSTS)
- 14. Planning-Study the Requirements Understand the needs- Approval Parties Develop a Methodology to reach “them” Evaluate the solution to meet evaluation criteriaAdvice from experienced people & experts Outshine Your Competitors Guidelines to follow, time & resources available #3.PREPARE STRONG BUSINESS CASE & PROPOSAL
- 15. HOW TO IMPLEMENT EFFECTIVE ENERGY MANAGEMENT PROGRAM? Will require long term planning & consistency in implementation
- 16. Fact Findings Planning & Target Setting Managing Energy Performance BASIC ENERGY MANAGEMENT IMPLEMENTATION PROCESS FLOW
- 17. MANAGEMENT COMMITMENT ENERGY POLICY PLANNING IMPLEMENTATION & OPERATION SYSTEM & PERFORMANCE CHECKING MANAGEMENT REVIEW Energy saving measures – to bring results in improving energy performance & cost reduction! No management commitment = less impacts = forget it!
- 18. KEY SUCCESS FACTORS Major elements to be considered
- 19. • The top management controls priorities authorities resources • The top management must be engaged & visible! CONFIRM & SECURE THE COMMITMENT FROM THE TOP Without the top management commitment, the energy management program will not succeed!
- 20. Guidance attached: Using remote building energy performance assessment auditing technology; Participating in demand management programs Ensuring that monthly performance data is entered into the Environmental Protection Agency ENERGY STAR Portfolio Manager Incorporating, where feasible, the consensus-based, industry standard Green Button data access system into reporting, data analytics & automation processes Implementing space utilization and optimization practices and policies; Conforming, where feasible, to city energy performance benchmarking & reporting requirements Installing and monitoring advanced energy meters in all federal data centers Establishing a power usage effectiveness target of 1.2 to 1.4 for new data centers & less than 1.5 for existing data centers. EXAMPLE? In March 2015, President Obama signed an Executive Order calling for federal agencies to reduce energy use in federal buildings by 2.5 percent per year from a 2015 baseline, through 2025.
- 21. INTEGRATION OF ENERGY MANAGEMENT INTO THE ORGANIZATION’S EXISTING SYSTEM Embeds energy management best- practice energy management in day-to-day operations Avoid making energy management as too many new things to employees Standardizes processes to ensure improvements are sustained over time
- 22. › Skilled & knowledgeable personnel APPROPRIATE RESOURCING To build competencies of the personnel Ensure & sustain success Gather feedback & input All training & expected skills acquired to be documented Ensure understanding of employees
- 23. Sufficient funds for implementation - influencing company culture, systems & processes Monitor, verify & promote SUCCESSFUL PROJECTS to build awareness & to demonstrate what is possible Regularly brief management on energy risks & opportunities Streamline & adapt project approval processes – to reduce limitations to access for funding for energy efficiency projects
- 24. EFFECTIVE REVIEW,PLANNING & ESTABLISHMENT OF ENERGY EFFICIENCY GOALS Can be translated into business performance goals & included in management performance metrics
- 25. Energy Baseline(s) Energy Performance Indicators Objectives Targets Action Plan PLANNING OUTPUTS MUST BE AGREED & WELL-COMMUNICATED!
- 26. Adoption of effective energy management system technologies for operational controls & key data gathering Basic data collection & reporting Computerized management system with operational controls of key operating parameters
- 27. Implementation of energy performance tracking, measurement & reporting systems Monitor performance in relation to goals & objectives for top management updates to seek continuous supports
- 28. EFFECTIVE AWARENESS PROGRAM Effective communication internally & externally • To ensures that senior managers & executives commit to energy efficiency • All employees & services providers play their well- informed roles in the process
- 29. EnMS Cycle COMPLETE Ongoing Activities Training Communication Operational Control Procurement Energy Efficient Design Action Plans System Checking
- 30. STANDARDS TO REFER/ADOPT? To START getting energy saving results from LOW – COST energy saving measures in energy management system implementation
- 31. 1. Appointment of management representative by top management 2. Preparation of energy policy 3. Identification and ensuring compliance against legal & other requirements 4. Conducting energy review of existing energy sources. 5. Creating energy base line as benchmark for improvement 6. Energy performance indicators 7. To provide necessary trainings 8.Establishing necessary operational controls for control of energy consumption 9.Design of energy efficient facilities, equipment, infrastructure, systems and processes right from project stage 10.Procurement of energy efficient equipment, instruments and services such as transportation etc. 11.Monitoring &measurement of energy consumption , performance indicators, significant energy uses & related variables 12.Internal audit, management review, control of documents, control of records. Key Requirements in ISO50001:2011 Standard – Energy Management System(EnMS)
- 32. WHAT’S NEXT? To go ahead & secure /maintain commitment from the top management Carry out the energy review & planning steps Carry out the implementation & operation of Energy Management Program To continue supports from the top management with performance improvements & energy cost savings achieved
- 33. Keep it simple with business in mind Do it together as a TEAM! The continuous supports from the top management is needed-KEEP CONVICING THEM! REMEMBER…