energy management

1. ENERGY MANAGEMENT & ITS IMPORTANCE
Our world is already fraught with rising energy demands. As per the
data available, the total energy consumption of the world is expected
to increase by 48% before 2040, says a report published by US
Energy Information Administration(EIA).
But favorably, employing an energy management system (EMS) in
a building – that aims to make use of the energy sources efficiently
– may save up to 29% on energy consumption costs. So, efficient
energy usage is the solution for this world’s ever-rising energy
hunger.
Now, the term – energy management – might be bringing to you an
image of just switching off some unused lights and appliances. But
here’s the fact – energy management covers more than just
switching on & off lights & fans. The process also has a role to play
in many areas like Logistics, Industrial Production, Machine
Maintenance, the Energy Procurement Process itself, and even your
Personal Life.

2. What is Energy Management?
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.

3. • To make things simple, we can define Energy
management as a process that involves optimization of
energy use for the best possible outcomes and taking
steps for its conservation. It also includes planning
related to the production of energy and its storage for
future usage. So, the ultimate aim of this process is not
only to save the cost but also to achieve complete
environmental sustainability.
• Recognize that contrary to the ongoing belief, the
energy management process applies not only to large
buildings and industrial facilities but even to our small
living units, like our kitchens or dining room. So, you
can start applying the process right away from your
home by switching off the electrical appliances when
not in use to save your electricity bills.

4. Various aspects of Energy Management
• Now, let’s look at various aspects of energy management i.e. how the
process of energy management helps in areas like Building Facilities,
Logistics, Industrial Production, Machine Maintenance, Energy
Procurement Process, and your Personal Life.
• 1. Facility Management
Energy Management is a part of facility management.
Energy management in commercial spaces involves steps to reduce
electrical energy consumption costs, but without compromising the
quality of work.
As we just told you above, you can save up to 29% of the total energy
costs through the implementation of energy management systems.
• 2. Energy Management in Logistics Operations & Transportation
Energy management in Logistics implies choosing the right means of
transportation, routes, performing load optimizations, using fuel-efficient
vehicles, and opting for clean fuels.
Around 15% of CO2 emissions worldwide are caused by road
transportation operations. So, implementing energy management here
will not only save transportation costs but also combat environmental
damage and global warming.

5. • 3. Energy Management in Manufacturing Industries
• A lot of energy improvement scope also lies in industries. Ensuring
best energy practices in industries will save substantial costs,
improve work efficiency, and will provide a safe working
environment. Following measures, if undertaken can save energy
inside the manufacturing plants.
• Replacing old manufacturing machines with modern energy-
efficient ones,
• Proper planning of production and maintenance activities,
• Using innovative ways of energy storage devices e.g. lithium-based
electromechanical devices, Spatial plannings.
• Using energy-efficient technologies – One of the examples of
energy-efficient technology is using Infrared Radiation(IR) for heat
treatment or cooking purposes. IR treatment in a food processing
company may save up to 78% of its electricity costs. Also, it also
doesn’t require any oil, unlike traditional cooking, and that oil also
has to be replaced regularly. So, using IR can provide more savings.

6. • 4. Energy Management in Energy Procurement
Process
• The energy procurement process involves
selling/purchasing energy units.
• The poor approach and transactional decisions here
may result in increased energy bills of an organization.
So implying energy management here involves taking
proactive and smart buying decisions to save energy
costs.
• 5. Personal Energy Management
• Personal energy management is about managing your
physical activities, mental efforts, as well as your
emotional state throughout the day for a happier and
healthy life.

7. • What are the steps involved in Building Energy
Management?
• Out of the various aspects of energy
management that we described above, we’ll be
primarily focusing on Energy Management inside
commercial/residential buildings i.e. Building
Energy Management, which is part of facility
management.
• Now, we’ll bring the Energy Management System
here. And so, the process of energy management
in buildings will involve the following four steps –
Collecting the data, then analyzing it to look for
energy-saving opportunities, acting upon the
opportunities, and REPEAT.

8. • 1. Collection of energy data

9. • The modern approach to energy-data
collection is to measure and record energy
consumption at short & regular intervals, like
for every (15-30) minute. Detailed interval
energy consumption data makes it possible to
see patterns of energy waste that would be
impossible to see otherwise.
• So, with our Energy Management
System(EMS) we’ll be tracking all types of
pieces of equipment like lifts, electric panels,
diesel generators, etc.

11. • 2. Inspection or Analysis of energy data captured
• The detailed data you have collected will be invaluable
if it’s not analyzed to quantify energy-saving
opportunities.
• The easiest and most cost-effective energy-saving
opportunities typically require little or no capital
investment.
• And this how you can do this-
• a.) Use your interval data to calculate how much
energy (in kWh) is used each weekend.
• b.) Estimate the proportion of energy that is getting
wasted on a daily basis.
• Using the figures from (a) and (b), calculate an estimate
of the total kWh that is wasted each weekend.

12. • 3. Act accordingly to improve the energy
consumption
• Only by finding the opportunities won’t help you to
save energy. One has to take action on the basis of
the data collected and findings done.
• 4. Keep tracking the complete process for
continuous future optimizations

13. • Energy savings that come from behavioral changes
need ongoing attention to ensure they remain effective
and achieve their maximum potential.
• If you’ve invested money into new equipment, you’ll
probably want to prove you’ve achieved the energy
savings you predicted.
• If you’ve corrected faulty timers or control equipment
settings, you’ll need to keep checking back to ensure
everything is still working as it should be.
• If you’ve been given energy-saving targets from above,
you’ll need to provide evidence that you’re meeting
them, or at least making progress towards that goal.

14. Why is Energy Management important?
• Energy management is today’s need of the hour. We
have already talked about how it aims to conserve
energy turning into cost savings. But there are plenty of
more reasons attached to the scene.
• 1. Energy Management saves costs
• Now we already know this, using an EMS in a building
may bring up to 29% savings on total energy
consumption costs.
• Secondly, even a small measure undertaken, like
replacing old CFL bulbs with more energy-efficient LED
lights, can reduce the lighting energy consumption
by more than 50% over a long period of time.

15. • 2. Reduces the risk of energy scarcity
• Though energy is just converted from one
form to another, it’s still susceptible to its
scarcity.
• As per a study conducted by the US Energy
Information Administration(EIA), the world’s
energy consumption is expected to grow by
48% by 2040. If not taken adequate steps, a
sudden surge in energy demand may cause
energy scarcity in the future.

16. • 3. To reduce greenhouse gas emissions
• 38% of the world’s total electricity is produced via coal power
plants. The burning of coal and other fossil fuels release
Greenhouse gases like CO2, CH4, CO, CfCl, etc that poses the
threat of global warming and its induced climate change.

17. • 4. Renewables have overhead costs too
• Even the energy obtained from renewable sources has substantial
overhead costs and capital costs attached to them. So we need to
consider this factor also.
• As per EIA’s Annual Energy Outlook 2021 report, the capital costs in
terms of per kW for renewable energy sources like Nuclear Power is
approx $7000, Bio-mass is approx $4000, and Hydropower is approx
$2700.
• For the sake of comparison, it varies from $(3800-6000) for coal
power plants depending upon their type.
• 5. To maintain energy price
• A balance between demand vs supply is essential to manage the
cost of any commodity. And this goes with energy too. The
fluctuations in energy prices will also affect the prices of electrical
appliances.
• So, proper energy management will ensure the affordability of
energy and its appliances in present times and for the future.

18. • 6. To meet statutory compliance
• It’s also becoming obligatory for industries to abide by energy
compliances issued by regulatory bodies.
• In 2019, Singapore implemented a “carbon tax” set at $5 per
ton of CO2 emissions. It’s the first country in Southeast Asia
to implement such a scheme. They did this to encourage
industries to reduce their carbon footprint. Talking of today,
the SG authorities are planning to increase this tax to $(10 –
14) per ton of CO2 emissions to further curb the CO2
emissions inside their country.
• 7. Managing energy also saves water
• The hydroelectric power plants, though they are free from
fossil fuel consumption, may degrade the quality of water
resources in a variety of ways. Oxygen stratification,
eutrophication, thermal pollution, and mercury pollution are
the major challenges posed by hydroelectric facilities where
they are constructed.

19. What is an Energy Management System(EMS)?
• An energy management(or monitoring) system(EMS) is an automation-
based system that consists of energy data capturing tools and display
devices to efficiently analyze the energy consumption for desired benefits.
It solves the problem of lack of proper insights and unplanned saving
initiatives that results in unaccounted energy bills.
• Analysis tells that energy managers across the globe are now changing
their way of working towards energy analysis. As per known figures, 67%
of the managers pronounced that the data has affected their thought and
decision-making process.
• The impact was phenomenal where they were able to see savings graphs
shooting up to a huge 17% in just 12 months. And the entire project cost
recovery was achieved in 14 to 17 months!.
• But managing energy consumption doesn’t have to be a full-time job. As
you’ll achieve much better results if it’s made a part of the regular routine.