SUCCESS FACTORS IN GREEN BUILDINGS’ OPERATION TO IMPROVE AND SUSTAINE ENERGY EFFICIENCY

PERFORMANCE

GBI UPDATES ROADSHOW 2015

By

ZAINI ABDUL WAHAB

Energy Management System Consultant

CONNECSYS SDN BHD

5th September 2015

KSL Resort, Johor Bahru

Overview of Energy Efficiency & business potentials

How to start?

How to implement?

Key success factors

What’s next?

Outline

Energy demand projected to increase from 2,000 PJ(2009) to 4,013 PJ(2030), average rate of 3.6% /year

Short term &long term measures that can be taken is through EE initiatives while working on looking for new energy sources (RE& alternative energy)

To balance and reduce the supply and

demand gap

Source: EPU

WE NEED TO CREATE

THE EE LINE!

TO QUANTIFY!

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

Profitability

Sustainability

Competiveness

Competency

Working environment quality

Corporate Image

Operating Costs -Energy

Risks – price fluctuation & supply shortages

Pollution

Carbon emission

Depletion of fossil fuel

INCREASE USERS’ COMFORT

SALES & ENERGY COST SAVINGS

BOOST IMAGE & VALUES

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

Factors impeding the uptake of energy

efficiency opportunities

Source: www.climateworksaustralia.org

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

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 ENERGY CAN BE SAVED AT BUILDINGS?

Buildings’ energy

savings potential can

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

HOW TO START AN

ENERGY MANAGEMENT

PROGRAM AT BUILDING

FACILITIES?

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!

SUCCESS FACTORS

Key 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.

Strong indication of commitment from the top

Top management can judge the performance of its strategy against the agreed targets.

Energy matters will be more likely to be understood & accepted throughout the organization management

Planned activities will be more successful if adequate resources are allocated to energy management

Formalizing

the energy

policy

process

enhances the

chances of

success

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

A one stop EnMS data & information system to develop, operate, monitor, & report energy performance results for the organization

To ensure continuous EnMS activities, data & information recording & updating

Controlled with clearly defined roles & responsibilities to maintain & improve the system

The Use of EnMS Tool template based on MS ISO50001:2011 Standard Requirements introduced by UNIDO

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

The Challenge: To CREATE awareness & to continue implementing energy efficiency practices in daily life at works & at home

ON-GOING DISSEMINATION OF ENERGY EFFICIENCY INFORMATION & BEST PRACTICES› Awareness talks to employees

› Stickers, posters & newsletters

› Banners & buntings

› Notification to customers, contractors & suppliers

On-going

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.Energy efficiency design for facilities, equipment, infrastructure, systems & processes at all stages

10.Procurement of energy efficient equipment, instruments & services

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

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

13.Management reviews to report results and ensure continuous support from the top management

Key Requirements in ISO50001:2011 Standard – Energy

Management System

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…

THANK YOU!

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