Zaini Abdul Wahab

ENERGY COMMISSION

24th November 2010

Seminar on

Efficient Management of Electrical Energy Regulations 2008

ENERGY MANAGEMENT SYSTEM (EMS):

DEVELOPMENT AND

IMPLEMENTATION

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

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

Energy Management

• One of management resources of a

company

• Required due to its influence to operation

and activities

All activities to ensure

efficient use of energy

in the organization

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)

Key Factors To Implement

Energy Management

External

Factors

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

INTERNAL FACTORS

Regulatory compliance

Market demand for green/

environmental related policies/practices

Certifications and standards requirements

Government funding

Uncertainty and increase in energy prices

EXTERNAL FACTORS

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

Dealing With Key Players

• A huge challenge

for the energy

manager to

convince every

key player to

consider and

implement

energy measures

in line of their

duties

TOP

MANAGEMENT

Introduce energy

management

system

PRODUCTION

MANAGER

Reduce

compressed

pressure

PURCHASING

MANAGER

Procure energy

efficient

equipment

ENGINEERING

MANAGER

Install variable

speed drives

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

ENERGY MANAGEMENT SYSTEM

(EMS)

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

Components In EMS

System Component Resources ( manpower, hardware

and software

1. Energy Management Policy

2. Organizing

3. Planning And Implementation

4. Evaluation

5. Review Result For Continual

Improvement

Trained personnel

Budget

Building Management/Automation

System Measure, control and monitor equipment

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

EMS Cycle

ENERGY

MANAGEMENT

POLICY

ORGANIZING

PLANNING AND

IMPLEMENTATION

EVALUATION

REVIEW FOR

CONTINUAL

IMPROVEMENT

PLAN

DO

CHECK

ACTION

•Commitment from the top management

•SMART policy

•Setting and sharing common goals

•Organization and

responsibilities

•Energy Manager

•Allocation of

resources

•Management Implementation

plan and time frame

•Energy auditing

•Set baselines for measuring

results

•Designation of responsibilities

•Procedures and standards

•Trainings •Measurement and verification

•Monitoring

•Management Review to confirm

Suitability, Adequacy

& Effectiveness

•Review targets

•Communicate the progress

•Actions to be taken

•Reporting and presenting

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

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

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

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

Examples Of Targets System

Category Examples of target Type

Highest

priority

Optional

Organizational Formulate company’s energy policy

Appoint energy manager

Introduce scheduled reporting

X

X

X

Economic Reduce annual energy cost by 10%

Introduce energy performance indicators

Introduce and related cost center

X

X

X

Technical

efficiency

Use high efficiency equipment

Control pressure/temperature levels

Load optimization for machinery

X

X

X

Behavioral Raise staff awareness level

Training and education measures

Carry out campaign programs

X

X

X

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

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

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)

Annual Energy Report

1. Documentation of contracts data

2. Target criteria of energy status to be checked

3. Energy Management

– Target and measures

– Responsibilities

– Operational structure

4. Information on measurement techniques and method used

5. Trends and progress – production and process output

– Total energy consumption

7. Trend and progress of energy use

- Business sector

- Key energy figures (energy intensity/benchmark)

8. Trend and progress of energy costs

9. Display of energy flow-energy balance sheet/chart

11. Results of energy analysis – explain deviations

12. Comparison of target and actual state of energy saving program

13. Results-Analysis of organizational and technical weaknesses, assessment of results and recommendation of measures for future improvement

THE STRATEGY

IN IMPLEMENTING EMS

What Need To Be Done?

ENERGY MANAGEMENT & IMPROVEMENT CYCLE

DECLARE POLICY

ESTABLISH INTERNAL

ORGANIZATION

UNDERSTAND CURRENT

ENERGY USE

CREATE PROCEDURE/

STANDARDS

MANAGE ENERGY

INTENSITY

Identify Problems

Set Target

& Values

Plan Saving

Measures

Implement

Measures

Verify results &

Evaluation

Standardize &

synchronize result

with procedures

Review& Set

Higher Targets

Daily

Managem

ent C

ycle

Impro

vem

ent C

ycle

Declare Policy

• Declare and introduce energy

management policy

• Create awareness on energy management

system and planned energy management

programs

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

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

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

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)

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

MANAGEMENT

OF ENERGY INTENSITY

(Daily Management)

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)

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

Examples Of Energy Intensity

Benchmark/Baseline Parameters

Production related

• kWh/T cement produced

(cement plant)

• kWh/MT, kCal/kg paper

produced (paper plant)

• kWh/kg yarn produced

(Textile)

• Million kilocals/MT Urea

or Ammonia (Fertilizer)

Equipment

• kW/ton of refrigeration

(Air cond. Plant)

• % thermal efficiency

(boiler plant)

• kWh/NM3 compressed air

generated

Identify Problems

• Identify efficiency problems to be

improved

• From historical and existing energy

performance data

You know your place

better than anyone else!

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

saving

Absolute reduction in energy consumption (kWh, GJ,

Btu)

Goal – percent reduction in total energy consumption

Monetary Reduction in total energy costs in RM

Unit energy

efficiency

Indicated by specific energy consumption or energy

index in unit or percentage

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

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)

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

Standardize Synchronize Results

With Management Standards

• Standardize results and

synchronize with

management

standards/procedures

that has been established

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

Internal Initiatives To Implement

Energy Saving Measures

ENERGY MANAGEMENT

•Observation

•Control

•Improvement

TOP TO DOWN ACTIVITIES

•Deployment of policy

•Continuous improvement

•Daily management

BOTTOM-UP ACTIVITIES

•Quality control cycle

•System to gather ideas/suggestions

•Small group

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

Evolution Of SEWG

STARTING TEAM OF

ENGINEERS

ADVANCED

IDEAL

ENGINEERS +

WORKERS

WORKERS TEAM (with advice

from engineers/

energy manager

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

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

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

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

EMWGs

1. Define roles

2. Plan goal and annual schedule

3. Prepare and conduct meeting

4. Follow up actions resulted from

meeting

5. Record activities and results

6. Prepare reports and present results

7. Learn from best practices

Energy

Manager

(Consultation

and to

provide

with information needed)

SUSTAINABLE TEAM

THANK YOU!

Q&A

zaini.wahab@st.gov.my

www.facebook.com/zaini.abdulwahab1