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Some Suggested Principles of Energy Management

Energy management involves tracking and optimizing energy consumption to reduce usage in buildings. It is important for individual companies as energy productivity provides opportunities for cost savings. There are four basic principles of effective energy management: 1) Control the costs of energy functions or services provided rather than total BTUs of energy used. 2) Treat energy functions as product costs rather than overhead. 3) Focus controls and metering on the 20% of functions that account for 80% of costs. 4) Put major effort into installing controls and achieving measurable results from savings opportunities.

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rodwin baraero
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71 views9 pages

Some Suggested Principles of Energy Management

Energy management involves tracking and optimizing energy consumption to reduce usage in buildings. It is important for individual companies as energy productivity provides opportunities for cost savings. There are four basic principles of effective energy management: 1) Control the costs of energy functions or services provided rather than total BTUs of energy used. 2) Treat energy functions as product costs rather than overhead. 3) Focus controls and metering on the 20% of functions that account for 80% of costs. 4) Put major effort into installing controls and achieving measurable results from savings opportunities.

Uploaded by

rodwin baraero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Some suggested

Principles of Energy
Management
ABAD | BAGAYAN | BARAERO | BSME-3A

MEE 1
Energy Management

Energy management is the process of


tracking and optimizing energy
consumption to conserve usage in a
building.
If energy productivity is an
important opportunity for the
nation as a whole, it is a
necessity for the individual
company.
The four basic principles which, if
adopted, may expand the effectiveness
of existing energy management
programs or provide the starting point
of new efforts.
First Principle
to control the costs of the energy function or service
provided, but not the Btu of energy.
As most operating people have noticed, energy is just a means of providing
some service or benefit.
In most organizations it will pay to be even more specific about the function
provided. For instance, evaporation, distillation, drying, and reheat are all typical
of the uses to which process heat is put.
In addition to energy costs, it is useful to measure the depreciation,
maintenance, labor, and other operating costs involved in providing the
conversion equipment necessary to deliver required services.
It is the total cost of these functions that must be managed and controlled, not
the Btu of energy.
Availabilities also differ and the cost of maintaining fuel flexibility can affect the
cost of the product.
Second Principle
to control energy functions as a product cost, not as
a part of manufacturing or general overhead.
In most cases, energy functions must become part of the standard cost system
so that each function can be assessed as to its specific impact on the product
cost.
The minimum theoretical energy expenditure to produce a given product can
usually be determined en route to establishing a standard energy cost for that
product.
In comparing actual values with minimum values, four possible approaches can
be taken to reduce the variance, usually in this order:
1. An hourly or daily control system can be installed to keep the function cost at
the desired level.
2. Fuel requirements can be switched to a cheaper and more available form.
3. A change can be made to the process methodology to reduce the need for the
function.
4. New equipment can be installed to reduce the cost of the function.
The starting point for reducing costs should be in achieving the minimum
cost possible with the present equipment and processes.
Third Principle
to control and meter only the main energy functions
—the roughly 20% that make up 80% of the costs.
As Peter Drucker pointed out some time ago, a few functions usually account for
a majority of the costs.

It is important to focus controls on those that represent the meaningful costs


and aggregate the remaining items in a general category.

Regardless of the reasonableness of the standard cost established, the inability


to measure actual consumption against that standard will render such a system
useless.
Submetering the main functions can provide the information not only to measure
but to control costs in a short time interval.
Fourth Principle
to put the major effort of an energy management
program into installing controls and achieving
results.
It is common to find general knowledge about how large amounts of energy
could be saved in a plant.
The missing ingredient is the discipline necessary to achieve these potential
savings.
Each step in saving energy needs to be monitored frequently enough by the
manager or first-line supervisor to see noticeable changes.

As suggested earlier, the overall potential for increasing energy productivity and
reducing the cost of energy services is substantial.
Energy productivity provides an expanding opportunity, not a last resort.
Thank You!

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