to assist the affected installation on basic guidelines about efficient management of energy

1. Seminar on
Efficient Management of Electrical Energy Regulations 2008
ENERGY MANAGEMENT SYSTEM (EMS):
DEVELOPMENT AND
IMPLEMENTATION
Zaini Abdul Wahab
ENERGY COMMISSION
24th November 2010

2. 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

3. 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

4. Energy Management
All activities to ensure
efficient use of energy
in the organization
• One of management resources of a
company
• Required due to its influence to operation
and activities

5. 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)

6. Key Factors To Implement
Energy Management
External
Factors
INTERNAL FACTORS

7. 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

8. EXTERNAL FACTORS
Regulatory compliance
Market demand for green/
environmental related policies/practices
Certifications and standards requirements
Government funding
Uncertainty and increase in energy prices

9. 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

10. Dealing With Key Players
• A huge challenge TOP  Introduce energy
for the energy MANAGEMENT management
manager to system
convince every PRODUCTION  Reduce
key player to MANAGER compressed
consider and pressure
implement PURCHASING  Procure energy
energy measures MANAGER efficient
in line of their equipment
duties ENGINEERING  Install variable
MANAGER speed drives

11. 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

12. ENERGY MANAGEMENT SYSTEM
(EMS)

13. 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

14. Components In EMS
System Component Resources ( manpower, hardware
and software
1. Energy Management Policy Trained personnel
2. Organizing Budget
3. Planning And Implementation Building Management/Automation
4. Evaluation System
5. Review Result For Continual Measure, control and monitor equipment
Improvement 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

15. EMS Cycle
ENERGY
MANAGEMENT •Commitment from the top management
POLICY •SMART policy
•Setting and sharing common goals
PLAN
•Organization and
responsibilities ORGANIZING
•Energy Manager
•Allocation of
resources
ACTION DO
REVIEW FOR
PLANNING AND
CONTINUAL
IMPLEMENTATION
IMPROVEMENT
CHECK •Management Implementation
•Management Review to confirm plan and time frame
Suitability, Adequacy •Energy auditing
& Effectiveness EVALUATION •Set baselines for measuring
•Review targets results
•Communicate the progress •Designation of responsibilities
•Actions to be taken •Procedures and standards
•Reporting and presenting •Measurement and verification •Trainings
•Monitoring

16. 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

17. 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

18. 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

19. 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

20. Examples Of Targets System
Category Examples of target Type
Highest Optional
priority
Organizational Formulate company’s energy policy X
Appoint energy manager X
Introduce scheduled reporting X
Economic Reduce annual energy cost by 10% X X
Introduce energy performance indicators X
Introduce and related cost center
Technical Use high efficiency equipment X
efficiency Control pressure/temperature levels X
Load optimization for machinery X
Behavioral Raise staff awareness level X X
Training and education measures X
Carry out campaign programs

21. 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

22. 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

23. 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)

24. Annual Energy Report
1. Documentation of contracts 7. Trend and progress of energy use
data - Business sector
- Key energy figures (energy
2. Target criteria of energy status intensity/benchmark)
to be checked
8. Trend and progress of energy costs
3. Energy Management
– Target and measures 9. Display of energy flow-energy
balance sheet/chart
– Responsibilities
– Operational structure
11. Results of energy analysis – explain
deviations
4. Information on measurement
techniques and method used 12. Comparison of target and actual
state of energy saving program
5. Trends and progress
– production and process output 13. Results-Analysis of organizational
– Total energy consumption and technical weaknesses,
assessment of results and
recommendation of measures for
future improvement

25. THE STRATEGY
IN IMPLEMENTING EMS

26. What Need To Be Done?

27. ENERGY MANAGEMENT & IMPROVEMENT CYCLE
DECLARE POLICY Identify Problems
Set Target
ESTABLISH INTERNAL & Values
ORGANIZATION
Plan Saving
Measures
UNDERSTAND CURRENT
Improvement Cycle
ENERGY USE Implement
Measures
Daily Management Cycle
CREATE PROCEDURE/ Verify results &
STANDARDS Evaluation
Standardize &
MANAGE ENERGY synchronize result
INTENSITY
with procedures
Review& Set
Higher Targets

28. Declare Policy
• Declare and introduce energy
management policy
• Create awareness on energy management
system and planned energy management
programs

29. 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

30. 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

31. 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

32. 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)

33. 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

34. MANAGEMENT
OF ENERGY INTENSITY
(Daily Management)

35. 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)

36. 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

37. Examples Of Energy Intensity
Benchmark/Baseline Parameters
Production related Equipment
• kWh/T cement produced • kW/ton of refrigeration
(cement plant) (Air cond. Plant)
• kWh/MT, kCal/kg paper • % thermal efficiency
produced (paper plant) (boiler plant)
• kWh/kg yarn produced • kWh/NM3 compressed air
(Textile) generated
• Million kilocals/MT Urea
or Ammonia (Fertilizer)

38. Identify Problems
• Identify efficiency problems to be
improved
• From historical and existing energy
performance data
You know your place
better than anyone else!

39. 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 Absolute reduction in energy consumption (kWh, GJ,
saving Btu)
Goal – percent reduction in total energy consumption
Monetary Reduction in total energy costs in RM
Unit energy Indicated by specific energy consumption or energy
efficiency index in unit or percentage

40. 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

41. 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)

42. 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

43. Standardize Synchronize Results
With Management Standards
• Standardize results and
synchronize with
management
standards/procedures
that has been established

44. 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

45. Internal Initiatives To Implement
Energy Saving Measures
TOP TO DOWN ACTIVITIES
•Deployment of policy
•Continuous improvement
•Daily management
ENERGY MANAGEMENT
•Observation
•Control
•Improvement
BOTTOM-UP ACTIVITIES
•Quality control cycle
•System to gather ideas/suggestions
•Small group

46. 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

47. Evolution Of SEWG
WORKERS TEAM
(with advice
from engineers/
IDEAL energy manager
ENGINEERS +
ADVANCED WORKERS
TEAM OF
STARTING ENGINEERS

48. 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

49. 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

50. 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

51. 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
Energy EMWGs
Manager 1. Define roles
(Consultation 2. Plan goal and annual schedule
and to 3. Prepare and conduct meeting
provide 4. Follow up actions resulted from
with information needed) meeting
5. Record activities and results
6. Prepare reports and present results
7. Learn from best practices

52. SUSTAINABLE TEAM

53. THANK YOU!
Q&A
zaini.wahab@st.gov.my
www.facebook.com/zaini.abdulwahab1