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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
Overview of Energy Efficiency(EE)
business trends,potentials & approaches
How to start
How to implement & Key success factors
What’s next?
Outline
Building owners can see reduced operating costs, increased building values, greaterreturn on investment, and higher occupancy from new and retrofitted green buildings
UNEP - GEO-5 for BusinessImpacts of a Changing Environment on the Corporate Sector
Companies may receive reputational benefits from achieving green buildingcertifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a businesswhose facility is certified as green, while 48% indicated that green certification of a facilityimproves 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 saidsustainability issues will be a critical factor to the futuresuccess of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount ofsustainability-related inquiries from investors in the past year. 70% inquiries focused onenergy management and greenhouse gas emissions & more than ½ questions aboutsustainability 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?
Energy Supply &
Utilization
ASSET RESPONSIBILITY PERIOD
Energy affects most of the life cycle of assetsEnergy costs affected by the fluctuating global primary energy
market prices – mainly from fossil fuels – depleting resources
HOW ENERGY CAN BE SAVED AT BUILDINGS?
Buildings’ energy
savings potential can
range from 3-41%Source: www.energymanagertoday.com
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
Factors impeding the uptake of energy
efficiency opportunities
Source: www.climateworksaustralia.org
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
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
HOW TO START AN
ENERGY MANAGEMENT
PROGRAM AT YOUR
COMPANY?
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
Typical manufacturing companies* can improve their profit margins
by 2% within 3 years
#2. CONFIRM SUBSTANTIAL DIRECT & INDIRECT SAVINGS(ENERGY & NON ENERGY COSTS)
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
HOW TO IMPLEMENT EFFECTIVE ENERGY MANAGEMENT PROGRAM?Will require long term
planning & consistency in
implementation
Fact FindingsPlanning &
Target Setting
Managing Energy
Performance
BASIC ENERGY MANAGEMENT IMPLEMENTATION PROCESS FLOW
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!
KEY SUCCESS FACTORS
Major elements to
be considered
• 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!
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.
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
› 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
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
EFFECTIVE REVIEW,PLANNING &
ESTABLISHMENT OF ENERGY EFFICIENCY GOALS
Can be translated into business performance
goals & included in management performance
metrics
Energy Baseline(s)
Energy Performance Indicators
Objectives
Targets
Action Plan
PLANNING OUTPUTS
MUST BE AGREED &
WELL-COMMUNICATED!
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
Implementation of energy performance tracking, measurement & reporting systems
Monitor performance in relation to goals & objectives for top
management updates to seek continuous supports
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
EnMS Cycle COMPLETE
Ongoing Activities
Training
Communication
Operational Control
Procurement
Energy Efficient Design
Action Plans
System Checking
STANDARDS TO REFER/ADOPT?
To START getting energy saving results
from LOW – COST energy saving
measures in energy management
system implementation
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)
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
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…