Concepts of Energy Management
Efficient and effective use of energy to maximize profits and enhance competitive positions

Desirable Objectives:
1. Improving Energy Efficiency and reducing energy use thereby reducing costs
2. Reduce greenhouse gases and improve air quality
3. Cultivating good communication on energy matters
4. Developing and maintaining effective monitoring, reporting and management strategies for wise energy usage
5. New/better ways to increase return from energy investments through research and development
6. Developing interest in and dedication to the energy management program from all employees
7. Reducing impacts: curtailment, brownouts, or any interruptions in energy supplies

Notes:

Need: Economics (cost reduction and profit improvement)
Barriers: Politics and Self Interest
Designing an Energy Management Program
Commitment from Management:
Response Mode – Management bought program and commitment exists
Aggressive Mode – Selling, use OD stats, examples from other organizations
Co-ordinator: Single person designated to get a priority and dedicated resources / Multiple personnel
Cost Allocations
Reporting and monitoring
Training: technical training, steering committee, plant wide training
Visibility at Start up: why program exists, how it will affect jobs and income, management is behind program, what is expected out of them
Management Commitment: participation at start up
Reward Participating Individuals, Reinforce commitment, Fun cost effective proposals
Early Project Selection: High efficiency motors, water heaters
Management of the program: Establishing objectives – hands off approach by management but adequate monitoring, SMART goals
Energy Monitoring, Targeting, Reporting: analyze historical data for performance, setting targets, controlling energy performance, projecting future energy benefits
Understanding Energy Bills
Energy consumption: Rate schedule
Difficult to understand
Energy is treated as overhead
Physical Plant: Technological sophistication, pollution requirements, cost of building and operating, capacity to provide during peak load
Transmission lines: losses depend on the distance of transmission
Substations: step down transformers and electrical equipment
Distribution system: stepping down substation voltages to meet commercial, industrial, residential voltage need
Voltage level: cost of transformer and losses associated with it
Meters: interface between utility and customers, cost buried in customer charge
Administrative costs: salaries for executive, management, technical and administrative staff. Space/office equipment lease. Vehicle maintenance and lease.
Energy Costs: primary means of energy: coal, natural gas, nuclear fuel
Administrative/customer charge: cost of meter, reading a meter, flat fee
Energy Charge: kWh used
Fuel cost adjustment: excess cost paid by utility for primary source of energy
Demand charge: allocate cost of capital facilities which provide the electric service
Demand Ratchet: creating