Energy Management What is Energy Management?

The aim of energy management is to achieve organizational objectives at minimum energy consumption and cost, but it is worth emphasizing that the operative word is "management". Three key principles of energy management are:

purchase energy at the lowest available price manage energy consumption at peak efficiency utilize the most appropriate technology

Within these principles lies a complex matrix of knowledge and skill requirements. For example, managing energy consumption at peak efficiency can involve activities ranging from auditing, to specifying retrofit measures and analyzing the resulting return on investment, to monitoring and targeting, to conducting employee and tenant awareness educational programs, and more. The energy manager typically will have responsibility for advising senior management on energy reduction strategies, for gaining commitment throughout the organization, for managing the implementation of measures, and for dealing effectively with contractors and energy suppliers. The skill set includes technical knowledge of contemporary building energy systems and energy rate structures, analytical techniques for assessing energy use, financial management methods for evaluating energy efficiency investments, and "social marketing" skills for building organizational commitment. For an individual employed in the facility management field, it would probably take up to a year of study to develop the necessary competencies. The first aim of energy management should be to gain control of consumption and costs by assessing current use, and by taking steps to incorporate energy efficiency into the corporate culture. This often involves:

Identifying, and quantifying, your organization's major users of energy Reviewing energy purchasing strategies-the fuel and billing rate structure choices-to make sure that the most appropriate energy sources are being exploited and that they are being bought at the right prices. Assessing operating practices-your heating plant, lighting and ventilation control strategies to ensure that existing plant and equipment is being operated at maximum efficiency. Motivating and training practices-energy awareness-raising campaigns and training programs for all individuals and groups whose actions can

affect consumption Energy management in industry: In many industrial organisations, energy management is a low priority item. All industrial companies can benefit from exercising good energy management. Savings of at least 10% and up to 40 % can be realized by implementing some useful energy management techniques. The key to achieving savings is to take a strategic approach to managing energy use and giving importance to energy management techniques. While energy efficient technologies have a significant role to play in reducing energy use in industry.

Why Energy Conservation Act, 2001 enacted? The magnitude of energy consumption has always been taken as an indicator of development status of any economy. However, what actually a country requires is not energy per se but the services that energy provides. A nation can increase the service by keeping the same inefficient device and pump in more energy. More energy will positively not accelerate the economic growth as long as economy has high-energy intensity. India's energy intensity per unit of GDP is higher by 3.7 times of Japan, 1.4 times of Asia and 1.5 times of USA, indicating to very high energy wastage. In the globalized economy, countries with high energy intensity may become uncompetitive due to high energy input cost. Therefore, energy cost reduction must become one of the important benchmarks for economic success. Efficiency in consumption of energy and its conservation would be one of the most important means of energy cost reduction and also for meeting future energy demand. There is a huge scope of energy saving in the country. Various studies undertaken suggest substantial energy saving potential in industrial, commercial and domestic sector. Efficient use of energy provides the least cost and environmentally friendly option for capacity creation in the shortest time frame. Energy efficiency also assumes further importance as "one unit of energy saved at consumer end, avoids 3 units of fresh capacity addition". With the background of high energy saving potential and its benefits, bridging the gap between demand and supply, reducing environmental emissions through energy saving, and to effectively overcome the barrier, the Government of India has enacted the Energy Conservation Act 2001. The Act provides the muchneeded legal framework and institutional arrangement for embarking on an energy efficiency drive.

Under the provisions of the Act, Bureau of Energy Efficiency has been established with effect from 1st March, 2002. The Bureau would be responsible for implementation of policy, programmes and coordination of energy conservation activities in the country. Definitions: "energy" means any form of energy derived from fossil fuels, nuclear substances or materials, hydro-electricity and includes electrical energy or electricity generated from renewable sources of energy or bio-mass connected to the grid; "energy manager" means any individual possessing the qualifications prescribed under clause (m) of section 14 "energy audit" means the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption; "Energy Management Centre" means the Energy Management Centre set up under the Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No. 7(2)/87-EP (Vol. IV), dated the 5th July, 1989 and registered under the Societies Registration Act, 1860; "designated consumer" means any consumer specified under clause (e) of section 14; "Bureau" means the Bureau of Energy Efficiency established under subsection (l) of section 3 List of Energy Intensive Industries and other establishments specified as designated consumers

Aluminium Fertilizers Iron and Steel Cement Pulp and paper Chlor Akali Sugar Textile Chemicals Railways

Port Trust Transport Sector (industries and services) Petrochemicals, Gas Crackers, Naphtha Crackers and Petroleum Refineries Thermal Power Stations, hydel power stations, electricity transmission companies and distribution companies Commercial buildings or establishments