Energy management includes planning and operation of energy production and energy consumption units as well as energy distribution and storage. 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. The VDI-Guideline 4602 released a definition which includes the economic dimension: "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".It is a systematic endeavor to optimize energy efficiency for specific political, economic, and environmental objectives through Engineering and Management techniques.
One of the 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 efficiency. Energy efficiency can improve the existing energy usage and benchmarking of every individual section such as area, sub-area and the industry etc. .
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 tasks.
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.
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 central task of energy management is to reduce costs for the provision of energy in buildings and facilities without compromising work processes. Especially the availability and service life of the equipment and the ease of use should remain the same. The German Facility Management Association (GEFMA e.V.) has published guidelines (e.g. GEFMA 124-1 and 124–2), which contain methods and ways of dealing with the integration of energy management in the context of a successful facility management.In this topic the facility manager has to deal with economic, ecological, risk-based and quality-based targets. He tries to minimize the total cost of the energy-related processes (supply, distribution and use).
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 consumption.
In comparison, the passive house ultra-low-energy standard, currently undergoing adoption in some other European countries, has a maximum space heating requirement of 15 kWh/m2a. A passive house is a very well insulated and virtually airtight building. It does not require a conventional heating system. It is heated by solar gain and internal gains from people. Energy losses are minimized.
There are also buildings that produce more energy (for example by solar water heating or photovoltaic systems) over the course of a year than it imports from external sources. These buildings are called energy-plus-houses.
In addition, the work regulations manage competencies, roles and responsibilities. Because the systems also include risk factors (e.g. oil tanks, gas lines), you must ensure that all tasks are clearly described and distributed. A clear regulation can help to avoid liability risks.
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.[ citation needed ]
Possible courses of action in terms of green logistics are:
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.
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 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.
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 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.
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:
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.
According to Kals there are the following energy strategies:
In reality, you usually find hybrid forms of different strategies.
Many companies are trying to promote its image and time protect the climate through a proactive and public energy strategy. General Motors (GM) strategy is based on continuous improvement. Furthermore, they have six principles: e.g. restoring and preserving the environment, reducing waste and pollutants, educating the public about environmental conservation, collaboration for the development of environmental laws and regulations.
Nokia created its first climate strategy in 2006. The strategy tries to evaluate the energy consumption and greenhouse gas emissions of products and operations and sets reduction targets accordingly.Furthermore, their environmental efforts is based on four key issues: substance management, energy efficiency, recycling, promoting environmental sustainability.
The energy strategy of Volkswagen (VW) is based on environmentally friendly products and a resource-efficient production according to the "Group Strategy 2018".Almost all locations of the Group are certified to the international standard ISO 14001 for environmental management systems.
When looking at the energy strategies of companies it is important to you have the topic greenwashing in mind. This is a form of propaganda in which green strategies are used to promote the opinion that an organization's aims are environmentally friendly.
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.
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:
Management of energy in a particular context:
In commerce, supply chain management (SCM) is the management of the flow of goods and services between businesses and locations. This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.
Leave No Trace is a set of outdoor ethics created by the Leave No Trace Center of Outdoor Ethics promoting conservation in the outdoors. It consists of seven principles:
Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically oriented practices. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy, that time has passed as various national and international laws have been developed. Various organizations have used their authority to push it beyond individual or even industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels.
Energy conservation is the effort made to reduce the consumption of energy by using less of an energy service. This can be achieved either by using energy more efficiently or by reducing the amount of service used. Energy conservation is a part of the concept of Eco-sufficiency. Energy conservation measures (ECMs) in buildings reduce the need for energy services and can result in increased environmental quality, national security, personal financial security and higher savings. It is at the top of the sustainable energy hierarchy. It also lowers energy costs by preventing future resource depletion.
The Wuppertal Institute for Climate, Environment and Energy is a German research institution for sustainability research concentrating on impacts and practical application. It explores and develops models, strategies and instruments to support sustainable development at local, national, and international levels. Research at the Wuppertal Institute focuses on ecology and its relation to economy and society. Special emphasis is put on analyzing and supporting technological and social innovations that decouple prosperity of economic growth from the use of natural resources. The organization's activities focus on developing transformation processes aimed at shaping a climate-friendly and resource-efficient world.
In economics, the Jevons paradox occurs when technological progress or government policy increases the efficiency with which a resource is used, but the falling cost of use increases its demand, negating reductions in resource use. The Jevons' effect is perhaps the most widely known pitfall in environmental economics. However, governments and environmentalists generally assume that efficiency gains will lower resource consumption, ignoring the possibility of the effect arising.
Environment friendly processes, or environmental-friendly processes, are sustainability and marketing terms referring to goods and services, laws, guidelines and policies that claim reduced, minimal, or no harm upon ecosystems or the environment.
Ecolabels and Green Stickers are labeling systems for food and consumer products. The use of ecolabels is voluntary, whereas green stickers are mandated by law; for example, in North America major appliances and automobiles use Energy Star. They are a form of sustainability measurement directed at consumers, intended to make it easy to take environmental concerns into account when shopping. Some labels quantify pollution or energy consumption by way of index scores or units of measurement, while others assert compliance with a set of practices or minimum requirements for sustainability or reduction of harm to the environment. Many ecolabels are focused on minimising the negative ecological impacts of primary production or resource extraction in a given sector or commodity through a set of good practices that are captured in a sustainability standard. Through a verification process, usually referred to as "certification", a farm, forest, fishery, or mine can show that it complies with a standard and earn the right to sell its products as certified through the supply chain, often resulting in a consumer-facing ecolabel.
A sustainable business, or a green business, is an enterprise that has minimal negative impact or potentially a positive effect on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. They cluster under different groupings and the whole is sometimes referred to as "green capitalism." Often, sustainable businesses have progressive environmental and human rights policies. In general, business is described as green if it matches the following four criteria:
An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. The ethical banking movement includes: ethical investment, impact investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, and social enterprise.
Eco-sufficiency, or simply sufficiency, refers to the concept or strategy to reduce the environmental footprint of modern societies. The term was popularised by authors such as Thomas Princen, a professor at MIT, in his 2005 book ‘The Logic of Sufficiency’. As a goal, sufficiency is about ensuring that all humans can live a good life without overshooting the ecological limits of the Earth, while at the same time defining what that good life may consist of. Princen argues that ‘seeking enough when more is possible is both intuitive and rational - personally, organizationally and ecologically. And under global ecological constraint, it is ethical.'
Corporate sustainability is an approach aiming to create long-term stakeholder value through the implementation of a business strategy that focuses on the ethical, social, environmental, cultural, and economic dimensions of doing business. The strategies created are intended to foster longevity, transparency, and proper employee development within business organizations. Firms will often express their commitment to corporate sustainability through a statement of Corporate Sustainability Standards (CSS), which are usually policies and measures that aim to meet, or exceed, minimum regulatory requirements.
Environmentally sustainable design is the philosophy of designing physical objects, the built environment, and services to comply with the principles of ecological sustainability and also aimed at improving the health and comfortability of occupants in a building. Sustainable design seeks to reduce negative impacts on the environment, the health and well-being of building occupants, thereby improving building performance. The basic objectives of sustainability are to reduce the consumption of non-renewable resources, minimize waste, and create healthy, productive environments.
Sustainable products are those products that provide environmental, social and economic benefits while protecting public health and environment over their whole life cycle, from the extraction of raw materials until the final disposal.
ISO 50001Energy management systems - Requirements with guidance for use, is an international standard created by the International Organization for Standardization (ISO). The standard specifies the requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy security, energy use and consumption.
Environmental certification is a form of environmental regulation and development where a company can voluntarily choose to comply with predefined processes or objectives set forth by the certification service. Most certification services have a logo which can be applied to products certified under their standards. This is seen as a form of corporate social responsibility allowing companies to address their obligation to minimise the harmful impacts to the environment by voluntarily following a set of externally set and measured objectives.
ISO 20121 is a voluntary international standard for sustainable event management, created by the International Organization for Standardization. The standard aims to help organizations improve sustainability throughout the entire event management cycle.
Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption. It is the aim to create a sustainable company value using a balance of economic and environmental efficiency. Green logistics has its origin in the mid 1980s and was a concept to characterize logistics systems and approaches that use advanced technology and equipment to minimize environmental damage during operations.
Energy balance, in terms of energy economics, is concerned with all processes within an organization that have a reference to energy. It derives from the ecobalance and has the ambition to analyze and verify the emergence, transformation and use of energy resources in an organization in detail. Energy balances serve as a major statistical data base for energy policy and energy management decisions. They contain important information such as the amount and composition of energy consumption, its changes or the transformation of energy.
Sustainable energy management in the wastewater sector applies the concept of sustainable management to the energy involved in the treatment of wastewater. The energy used by the wastewater sector is usually the largest portion of energy consumed by the urban water and wastewater utilities. The rising costs of electricity, the contribution to greenhouse gas emissions of the energy sector and the growing need to mitigate global warming, are driving wastewater utilities to rethink their energy management, adopting more energy efficient technologies and processes and investing in on-site renewable energy generation.
"The Industry". The Totus Group. Retrieved 11 March 2018.
The Building Controls and Energy Management Industry began with the energy crisis's of the 1970s and specifically starting in 1973 with the first Arab embargo.