IMPLEMENTATION OF ENERGY MANAGEMENT SYSTEM TO IMPROVE

ENERGY EFFICIENCY

Green Buildings & Parks World 2015

By

ZAINI ABDUL WAHAB

Energy Management System Consultant

CONNECSYS SDN BHD

5th August 2015

InterContinental Hotel, Kuala Lumpur

Overview of Energy Efficiency(EE)

business trends,potentials & approaches

How to start

How to implement & Key success factors

What’s next?

Outline

Building owners can see reduced operating costs, increased building values, greaterreturn on investment, and higher occupancy from new and retrofitted green buildings

UNEP - GEO-5 for BusinessImpacts of a Changing Environment on the Corporate Sector

Companies may receive reputational benefits from achieving green buildingcertifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a businesswhose facility is certified as green, while 48% indicated that green certification of a facilityimproves their image of a company.

University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices

UN Global Compact of 766 CEOs worldwide-93 % of CEOs saidsustainability issues will be a critical factor to the futuresuccess of their business

2012 Ernst & Young Survey – 66% of executives saw an increased amount ofsustainability-related inquiries from investors in the past year. 70% inquiries focused onenergy management and greenhouse gas emissions & more than ½ questions aboutsustainability reporting

Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year.

IS ENERGY EFFICIENCY AN

OPTION OR A MUST DO NOW?

Energy Supply &

Utilization

ASSET RESPONSIBILITY PERIOD

Energy affects most of the life cycle of assetsEnergy costs affected by the fluctuating global primary energy

market prices – mainly from fossil fuels – depleting resources

HOW ENERGY CAN BE SAVED AT BUILDINGS?

Buildings’ energy

savings potential can

range from 3-41%Source: www.energymanagertoday.com

ALTERNATIVE ENERGY

SOURCES

High costs

ENERGY EFFICIENT

TECHNOLOGY SOLUTIONS

Medium-high costs

Require financial & investment risks assessments

SAVE THROUGH BEST PRACTICES & CULTURAL CHANGE – ENERGY

MANAGEMENT

Low-no costs

MORE POLICIES &

SUPPPORT

MEASURES

REQUIRED FROM THE GOVERNMENT

TO ENCOURAGE

INVESTMENTS

FROM PRIVATE

SECTOR

Factors impeding the uptake of energy

efficiency opportunities

Source: www.climateworksaustralia.org

LOW PRIORITY VS. CORE BUSINESS

FUNDING THROUGH

LOANS/DEBTS FOR EE

PROJECTS WILL IMPAIR “CREDIT CAPACITY

BENEFITS ARE TOO SMALL TO

APPEAR ON TOP MANAGEMENT’S RADAR SCREEN

NOT CONVINCED ON

ACTUAL COST SAVINGS ACHIEVED

Barriers to energy efficiency among the

top management groups

Inefficiencies in the business can go unnoticed

Lost opportunities to improve energy use & reduce carbon emissions- may not be acted upon

Unnecessary energy expenditure erodes profits & performance

HOW TO START AN

ENERGY MANAGEMENT

PROGRAM AT YOUR

COMPANY?

Energy supply/security issues for business continuity

Rising energy prices

Market (customers & investors) expectations on energy & greenhouse performance

Employee expectations

Local community concerns

Legal requirements

Government funding and tax benefits

Maintenance, reliability & other operational issues

#1. CONFIRM BUSINESS DRIVERS

Typical manufacturing companies* can improve their profit margins

by 2% within 3 years

#2. CONFIRM SUBSTANTIAL DIRECT & INDIRECT SAVINGS(ENERGY & NON ENERGY COSTS)

Planning-Study the

Requirements

Understand the needs-Approval Parties

Develop a Methodology to

reach “them”

Evaluate the solution to meet evaluation

criteriaAdvice from experienced people & experts

Outshine Your Competitors

Guidelines to follow, time &

resources available

#3.PREPARE STRONG BUSINESS CASE & PROPOSAL

HOW TO IMPLEMENT EFFECTIVE ENERGY MANAGEMENT PROGRAM?Will require long term

planning & consistency in

implementation

Fact FindingsPlanning &

Target Setting

Managing Energy

Performance

BASIC ENERGY MANAGEMENT IMPLEMENTATION PROCESS FLOW

MANAGEMENT

COMMITMENT

ENERGY

POLICY

PLANNING

IMPLEMENTATION &

OPERATION

SYSTEM &

PERFORMANCE

CHECKING

MANAGEMENT

REVIEW

Energy saving

measures – to bring

results in improving energy performance

& cost reduction!

No management commitment =

less impacts = forget it!

KEY SUCCESS FACTORS

Major elements to

be considered

• The top management controls

priorities

authorities

resources

• The top management must be engaged &visible!

CONFIRM & SECURE THE

COMMITMENT FROM THE TOP

Without the top

management commitment,

the energy management

program will not succeed!

Guidance attached: Using remote building energy performance assessment auditing technology;

Participating in demand management programs

Ensuring that monthly performance data is entered into the Environmental Protection Agency ENERGY STAR Portfolio Manager

Incorporating, where feasible, the consensus-based, industry standard Green Button data access system into reporting, data analytics & automation processes

Implementing space utilization and optimization practices and policies;

Conforming, where feasible, to city energy performance benchmarking & reporting requirements

Installing and monitoring advanced energy meters in all federal data centers

Establishing a power usage effectiveness target of 1.2 to 1.4 for new data centers & less than 1.5 for existing data centers.

EXAMPLE?

In March 2015, President Obama signed an Executive

Order calling for federal agencies to reduce energy

use in federal buildings by 2.5 percent per year from a

2015 baseline, through 2025.

INTEGRATION OF ENERGY

MANAGEMENT INTO THE ORGANIZATION’S

EXISTING SYSTEM

Embeds energy management best-

practice energy management in

day-to-day operations

Avoid making energy management as too many

new things to employees

Standardizes processes to ensure

improvements are sustained over time

› Skilled & knowledgeable personnel

APPROPRIATE RESOURCING

To build competencies of

the personnel

Ensure &

sustain success

Gather

feedback &

input

All training &

expected

skills acquired

to be

documented

Ensure

understanding

of employees

Sufficient funds for implementation -

influencing company culture, systems & processes

Monitor, verify & promote SUCCESSFUL PROJECTS to build awareness & to demonstrate what is possible

Regularly brief management on energy risks & opportunities

Streamline & adapt project approval processes – to reduce limitations to access for funding for energy efficiency projects

EFFECTIVE REVIEW,PLANNING &

ESTABLISHMENT OF ENERGY EFFICIENCY GOALS

Can be translated into business performance

goals & included in management performance

metrics

Energy Baseline(s)

Energy Performance Indicators

Objectives

Targets

Action Plan

PLANNING OUTPUTS

MUST BE AGREED &

WELL-COMMUNICATED!

Adoption of effective energy

management system technologies for

operational controls & key data gathering

Basic data collection & reporting

Computerized management system

with operational controls of key

operating parameters

Implementation of energy performance tracking, measurement & reporting systems

Monitor performance in relation to goals & objectives for top

management updates to seek continuous supports

EFFECTIVE AWARENESS PROGRAM

Effective communication

internally & externally

• To ensures that senior

managers & executives

commit to energy efficiency

• All employees & services

providers play their well-

informed roles in the process

EnMS Cycle COMPLETE

Ongoing Activities

Training

Communication

Operational Control

Procurement

Energy Efficient Design

Action Plans

System Checking

STANDARDS TO REFER/ADOPT?

To START getting energy saving results

from LOW – COST energy saving

measures in energy management

system implementation

1. Appointment of management representative by top management

2. Preparation of energy policy

3. Identification and ensuring compliance against legal & other requirements

4. Conducting energy review of existing energy sources.

5. Creating energy base line as benchmark for improvement

6. Energy performance indicators

7. To provide necessary trainings

8.Establishing necessary operational controls for control of energy consumption

9.Design of energy efficient facilities, equipment, infrastructure, systems and processes right from project stage

10.Procurement of energy efficient equipment, instruments and services such as transportation etc.

11.Monitoring &measurement of energy consumption , performance indicators, significant energy uses & related variables

12.Internal audit, management review, control of documents, control of records.

Key Requirements in ISO50001:2011 Standard – Energy

Management System(EnMS)

WHAT’S NEXT?

To go ahead & secure /maintain commitment from the top management

Carry out the energy review & planning steps

Carry out the implementation & operation of Energy Management Program

To continue supports

from the top

management with

performance

improvements & energy

cost savings achieved

Keep it simple with business

in mind

Do it together as a TEAM!

The continuous supports

from the top management is

needed-KEEP CONVICING

THEM!

REMEMBER…

CONNECSYS SDN BHD

www.cnsgroup.com.my

mail@cnsgroup.com.my

THANK YOU!