Establishing an energy management system. An energy management system (En. MS) is an ongoing process of identifying, planning and implementing improvements in the way an organisation uses energy. A high- quality and comprehensive En. MS builds business value by acknowledging the importance of energy as an essential business input, and by establishing enduring processes to monitor and achieve best practice in the use of energy resources. An effective En. MS provides a framework of practical processes and procedures to deliver on an organisation’s energy objectives. Key principles of a best- practice En. MS that are essential to establish and operate an effective system are outlined below. Leadership and responsibility – the role of senior management. ![]() The commitment of senior management is fundamental to an effective energy management system. Energy management should not be merely . Communicating the commitment of senior management and the resources that have been assigned establishes energy management as an important priority at all levels of the organisation. The US Environmental Protection Agency’s Elevate Energy Management to Senior Managers fact sheet describes how energy managers can secure and maintain commitment and support from key decision makers for energy- efficiency initiatives. Develop an energy policy that includes energy performance. Developing and adhering to an energy policy is important. It demonstrates that an organisation, including its senior management, is committed to improving energy performance. The policy can clarify what the energy management objectives of the organisation are and the timeframes within which they are expected to be achieved. It is often expressed as a concise statement that can be quickly and easily communicated throughout all levels of the organisation. Typically, an energy policy would state how energy management aligns with the organisation’s broader improvement goals and sets out the target metric for improvement. For example, the policy may include a reduction in the amount of energy used per unit of production, with a specified time for the goal to be achieved. The policy may also address linkages between carbon emissions and energy use, and set out greenhouse gas reduction targets. The policy should also explain how energy relates to broader sustainability objectives and policies of the organisation. As with any business policy, the energy policy should be periodically updated and performance assessed against it on an ongoing basis. Align the scope with existing processes. Each organisation is unique, and it is important that an En. MS is aligned with existing business priorities and systems. It should be a key component of an organisation’s continuous improvement efforts. An En. MS can be implemented at different levels of an organisation, depending on the size and structure of the business. For example, organisations that have a single management structure will typically implement a single top- level En. MS. Energy performance can also be incorporated into an organisation’s design and procurement practices for new products, facilities, equipment and processes. This could include how energy sources are identified and procured and how the energy performance of a supplier’s products is considered during procurement. Another scoping consideration is the relevant timeframe of the En. MS. Specifying time- bound objectives and activities of the En. MS over the short, medium or long term can affect many facets of the En. Compressed Air Best Practices Demand-side management involves reducing electricity use through activities or programs that promote electric energy efficiency or conservation, or more efficient. ICF plans, develops, administers, and implements award-winning energy efficiency (EE) programs and portfolios as well as demand response (DR) programs for our clients. MS, such as resource allocation and decision- making criteria. ISO 5. 00. 01: 2. Energy management systems – Requirements with guidance for use is a voluntary international standard that provides guidance on the development and implementation of an energy management system. The benefits of using ISO 5. En. MS include compatibility with other international standards and the ease of integration with other management systems such as environmental management (ISO1. ISO9. 00. 1) systems. ![]() The PEW Center’s, From Shop Floor to Top Floor: Best Business Practices in Energy Efficiency describes best practice in energy management using a set of international case studies. The findings in this report include the business case for energy management, . The examples presented are from large corporations. ![]() Energy Efficiency Program Opt-Out Eligibility; Energy Efficiency Opt-In/Opt-Out Provision; Energy Efficiency and Demand-Side Management Decision Form (pdf, 718 KB). Energy demand management, also known as demand-side management (DSM) or demand-side response (DSR), is the modification of consumer demand for energy through various. With demand on the rise and fossil fuels on the outs in some areas, utilities are turning more and more to energy efficiency to help them bridge the gap. However, the reasons for undertaking improving energy management practices, and the results achieved, can be useful to small businesses as well. Appoint an energy manager and an energy team. An energy manager is typically responsible for overseeing the development and implementation of the En. MS and acting as the link between senior management and the rest of the organisation. Best practice in energy management requires the involvement of staff from many different areas and roles across the organisation. This may include personnel with specific technical and operational knowledge, staff from financial, environmental and other departments, and senior managers with the authority to make significant business decisions. Forming an energy team facilitates participation and commitment, provides the energy manager with a resource base to draw upon, and ensures all aspects of the business are taken into account for energy efficiency projects. Depending on the size and circumstances of the organisation, other leadership roles or project teams may be required to execute different aspects of the En. MS. It highlights the importance of developing cross- functional energy teams. Undertaking an energy efficiency assessment is the key activity to gaining a deeper understanding of how energy is used in the organisation, and where opportunities exist to improve performance. An En. MS provides a structure for how the outcomes of the assessment can be evaluated by key decision- makers including which energy efficiency projects should be pursued and how they should be implemented. This includes assigning responsibilities, allocating resources and outlining how cost- effective opportunities can be implemented to achieve identified savings. Based on lessons from the assessment process, companies can set more specific energy performance goals and identify and evaluate projects on an ongoing basis. As part of the En. MS, energy efficiency assessments should be undertaken on a regular basis, and should allocate resources to the areas where the greatest energy performance improvements can be achieved. Corporations that are registered participants of legislated energy efficiency programs should refer to the relevant documentation for those programs. Links to that information can be found on the Programs page. Communication and reporting. Frequent, high- quality communication practices are a key factor in the successful operation of an En. MS. Companies should be regularly tracking their energy performance against energy management objectives, evaluating how the outcomes of energy efficiency assessments and implemented projects are helping them. Continuous and consistent reporting provides transparency and accountability, and helps maintain the enegagement of senior management and staff. The En. MS should specify the communication channels to be used for sharing findings and outcomes. This includes establishing formal reporting procedures, adding energy as a standing agenda item at regular meetings and establishing reporting templates which easily communicate key metrics. ![]() The use of key performance indicators (KPIs) is effective for evaluating energy performance for a business, site, or specific process and communicating when potential problems need to be addressed. Development of effective KPIs also yields insight into the key variables affecting energy efficiency. Establish continuity and consistency in energy management. Like any business management system, perseverance and consistency are necessary to operate an En. MS. This includes consistent implementation of action plans, regular monitoring of energy use and efficiency, evaluation of the performance of projects that have been investigated or implemented, and planning for future energy assessments. A continuous feedback process should be used, promoting the flow of information on policies, plans, ideas, decisions and performance. To retain a high- level of staff engagement, all communications received from staff should be documented, followed up, and acted on where appropriate. A systematic method should be used to collect and store all information pertaining to the En. MS, incorporating the document control procedures of the organisation. This provides an ongoing record and ensures accountability and transparency as well as enabling evaluation and review. The En. MS itself should be reviewed on a regular basis to improve the value it delivers to the business and its conformance with any applicable standards such as ISO 5. Additional Energy Management System Resources. International Standards. ISO 5. 00. 01: 2. Energy management systems - Requirements with guidance for use 2. International Organization for Standardization. This voluntary standard provides organisations with guidance and requirements for energy management systems. It is intended to establish a framework that will apply across all sectors of the economy, and will assist facilities to create transparency and promote best practice in energy management systems. This standard will be useful for personnel responsible for designing and implementing an energy management system and it can be applied across multiple organisation types and sizes. Note: Requires payment for download. Australian Resources. Energy Saver Training: Energy Management Basics 2. NSW Department of Environment & Heritage. Website This practical and interactive training course is designed to assist businesses in understanding their energy use, collect and manage data, and reduce costs through greater efficiency. Energy Management Guide for Tenants 2. Opportunities – Demand side . Changing your consumption in response to real- time electricity prices, can also generate savings or earn extra revenue. Understanding how these opportunities arise, enables the development of a holistic energy procurement strategy. Improving energy efficiency. Implementing energy efficiency opportunities permanently reduces energy usage, lowering total demand and consumption charges. This results in a downward shift in your demand profile, and provides a cost effective way to reduce the cost of network charges. Source: Marsden Jacob Associates' analysis (2. Identifying energy efficiency measures requires a detailed assessment of your company’s energy use. This will provide an understanding of how energy is used within your operations, and identify opportunities to improve energy performance. Analysis conducted can also assist to identify other demand side opportunities. Energy efficiency opportunities can involve investing in new technology, processes and practices that reduce the energy intensity of business activities. It is important to check the implications of reducing overall usage within existing contracts, and when negotiating future contracts. For example, some end users have . This means that they are obliged to purchase a certain minimum amount of energy. If they reduce their consumption below that point, they may still have to pay for it. Large energy users also usually pay a capacity or demand charge as part of their network tariff. Typically, this is levied as a fixed charge on the retailer’s energy bills. In most circumstances, a user who reduces consumption will also reduce demand. However, this may not lead to a reduction in the capacity or demand charge , until that charge is due for review, which may be once every 1. From time to time, circumstances may arise where the network service provider faces constraints in the local network. In this instance, the network service provider may be willing to amend the capacity or demand charge earlier than specified, or even pay for demand side response if this helps reduce network constraints. Industry Case Study – Oxford Cold Storage – How energy efficiency can reduce network costs. Oxford Cold Storage has a policy of funding new energy efficiency initiatives that achieve a payback in two years or less. Energy efficiency measures have included: increasing the building shell thermal performance of new storage facilities by using under- slab insulation and increased building shell insulation; greater protection for loading dock doors and installation of . This reduction will save the company approximately$3. Oxford Cold Storage see the Energy Savings Scheme in New South Wales as an opportunity to implement additional initiatives with payback periods out to four years. Implementing these additional initiatives, which the company has already identified, could achieve an additional 1. For more detail on energy efficiency opportunities, refer to. Energy Efficiency Assessments. Sectors. Technologies. Substitution of energy source. Substitution involves changing the source of energy, for example switching from electricity to gas, or by using onsite generation or cogeneration to create capacity to provide part of, or all of your energy requirements. Substitution requires investment in, and maintenance of, any onsite facilities and sourcing and storing the fuel to run them. If you require reliable energy there may not be any opportunity to shed load from the grid and substitute it for self- generated power. Industry Case Study – Bankstown Sports Club – Demand Side Response. Bankstown Sports Club was approached by a demand side aggregator following pending network capacity problems in the local area. The Club entered an agreement to provide network support, using on site generation, because this was clearly preferable to facing loss of supply due to network outages. The initial agreement included payment of a . The terms and conditions of the modified agreement are similar to the initial agreement and require Bankstown Sports Club to offer . The demand side aggregator installed and rigorously tested a remote, automatic start facility for the Club’s diesel generators. This allows the demand side aggregator to remotely dispatch the generators at very short (5 minute) notice during very short periods of extreme high spot price. However, Bankstown Sports Club retains control over the generators, which can be . Payments received must also be analysed against any increased maintenance or equipment replacement costs in the longer term. Last year, we were paid the . But this summer, we received about the same . Clearly, the returns in the first year are a lot more favourable than the returns this year. It can generate returns that may more than compensate for the costs of lost production, organisational training and administration of the demand- side response measures. Load shifting can be achieved through rescheduling activities, switching off unnecessary equipment, switching to onsite generation or by building product inventory to enable parts of the plant to be switched off when wholesale prices are high. For example, a cement works might choose to store surplus stock, enabling them to continue production after turning off their crushers during peak periods. Load shifting can help end users reduce their total demand charges, but may not necessarily reduce overall usage charges. Additional power is often required at other times to undertake the rescheduled processes or to return processes to the appropriate temperatures. However, end users can still benefit if they are able to shift their load during times of high wholesale spot prices, and capture the value. Source: Marsden Jacob Associates' analysis (2. Capturing the benefits. Demand bidding provides an opportunity to capitalise on shifting load from a peak demand period, when wholesale market prices are high, to a time period when demand and wholesale market prices are lower. The load you are willing to shed can be offered to the market through a demand- side aggregator or your energy retailer. A higher risk approach, but with potentially greater rewards, is to deal directly with a network service provider, wholesale energy markets or through financial contracts. Demand- side aggregators pay for shed loads in a variety of ways. In all cases, there is an actual payment for the load that is shed; in some cases there may be a standby charge for being available and willing to shed load. Industry Case Study – Amcor – Using demand side aggregators. Amcor has entered into an agreement with a demand- side aggregator which allows a significant financial benefit from reducing load, or running onsite backup generators for short periods of time. Amcor uses their preferred demand- side aggregator to provide demand- side response services in South Australia, using 3 MW of back- up generation at their Gawler glass plant. The service provider combines individual items of Amcor’s capacity into a reliable portfolio and contracts with National Electricity Market participants for demand- side response services. Amcor also uses their demand- side aggregator to provide demand side response services in Western Australia using approximately 1. MW of load that can be turned off at short notice. The demand- side aggregator aggregates Amcor’s capacity into a reliable portfolio and contracts for Reserve Capacity with the Western Australian Independent Market Operator through the Reserve Capacity Mechanism. Amcor receives capacity (or . Amcor also receives payments when responding to a . Peak shaving. Reducing energy use at peak times is called peak shaving or peak clipping. Peak shaving can realise a range of benefits when it coincides with peak demand, and therefore peak prices, in the wholesale market. Peak shaving, as illustrated in the figure below, can be achieved by shedding load or by using onsite standby generation facilities during peak times. When reducing usage at peak times, it can enable you to stay within your contract’s maximum demand and can optimise network and retail tariff costs. Source: Marsden Jacob Associates' analysis (2. Peak shaving is most appropriate whentotal load on a site is approaching the agreed maximum demand, enabling you to avoid penalty charges; orthe load on the distribution network is approaching its maximum. When load on the distribution network is approaching its maximum, end users can enter into an arrangement with the distribution network service provider to ease congestion on the system and enhance network reliability. These types of arrangements should be discussed with your retailer however to ensure changes in your demand profile do not impact adversely on their energy supply arrangements and result in you paying higher energy prices because your load appears to be more volatile. Capturing the benefits. There are a number of ways for end users to capture the benefits of peak shaving: By agreeing to a demand- side response clause with your retailer, you can shed load at times of high underlying spot prices in return for a pre- agreed compensation. By purchasing all, or part, of your energy requirements directly from the wholesale electricity market, and avoiding loads when the spot price exceeds a certain level, you can achieve a lower average cost for energy. This approach requires very careful assessment of the opportunities and risks, investment in suitable monitoring and control systems and very thorough training of production staff and management personnel. Financial risks can also be managed through appropriate financial instruments. See wholesale markets. In the gas market, by having a fixed price retail energy contract, end users can re- sell unused energy created by load shedding back into the spot market, either directly or through a demand- side aggregator. Industry Case Study— Oxford Cold Storage – Shedding load to stay under maximum demand.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
September 2017
Categories |