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    OVERVIEW OF MAIN TOPICS OFMANAGE ENERGY IN COMPANY

    Prepared byDuan Gvozdenac and Miroslav Kljaji

    Project: Regional training on planning and monitoringenergy efficiency measures in the constructing sectorPodgorica, Tiran , Sarajevo i Banja Luka, October December, 2013.

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    1 Naturalresources

    Materials, energy, land ...

    2 Man-maderesources

    Technology, machines, buildings, ...

    3 Humanresources

    People.

    4 Capabilities Organizational routines, procedures and

    knowledge determining company abilityto perform, i.e. provide services or deliverproducts.

    The company resources fall into 4 categories:

    2

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    Business system Technology People

    Inputs Outputs

    Decisions

    Information Information

    InformationRegulations Businessenvironment

    Naturalenvironment

    M

    M

    M

    Performancemanagement

    = Measurement

    Overview of Performance Management Process

    3

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    1 Planning Deciding on how to use resources in order to

    achieve given targets. 2 Coordination Communication between companysfunctional units.

    3 Organization Organizing people to get best out of theirpotential.

    4 Staffing Hiring, motivating and developing people asthe most valuable company resource.

    5 Controlling Supervising, supporting, communicating,motivating and guiding people to achieve

    required performance. 6 Budgeting Planning and securing financial means for

    company operation. 7 Reporting Enabling flow of information and control of

    policy implementation.

    Main Management Tasks

    4

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    Energy management system establishment

    services help companies develop a strategic planfor certification, complementing technicalinnovations with managerial solutions to create acomprehensive energy management system with

    sufficient tools to lower the cost of energyconsumption and improve production efficiency.

    Following a PLAN, DO, CHECK, ACT model,energy management system comprises:

    5

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    Technical aspects

    Plan: baseline setting, trackingDo: project development, assessmentsCheck: measurement and evaluation Act: procedure implementation, process control

    Managerial aspects Plan: policy, goals, and targets developmentDo: training, documentation, communicationCheck: internal audits Act: management review, corrective/preventative

    action, incentives

    6

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    ENERGY SAVINGS MONITORING OR

    MEASUREMENTS AND VERIFICATION(M&V)

    Technically terms MEASUREMENT and MONITORINGare the same. But, one way to think about it is for aheat treat process an responsible person wouldmonitor the temperature in the oven, and measure

    the hardness of the part after it has been treated.However, one must measure in order to monitor, andmeasuring parts is monitoring how well the processis meeting specs.

    7

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    M&V services has to be adopted the InternationalPerformance Measurement and Verification Protocol(IPMVP) as the basis, which has become the internationallyaccepted standard for quantifying the results of energysaving. Energy efficiency experts have to use thismethodology as part of a broader energy efficiencymeasurement and verification program that covers:

    Compilation of reference database, Establishment of baseline, Development of an M&V plan,

    Conducting post-retrofit M&V, Monitoring and adjustment of energy savings, Issuing of M&V reports, Monitoring of long-term energy savings.

    8

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    For analysis of the M&V procedures it is useful to explainthe following terms:

    MONITORING is the regular observation and recordingof activities taking place in a project or program. It is aprocess of routine information gathering with reference

    to all aspects of the project.

    Monitoring also involves giving feedback about theprogress of the project to donors, implementers and

    beneficiaries of the project. Reporting enables gatheredinformation to be used in a decision making process toimprove project performance.

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    MEASUREMENT is the collection of quantitative data.

    A measurement is made by comparing a quantity with astandard unit. Since this comparison cannot be perfect,measurements inherently include an error.

    Technically, it can be said that terms MEASUREMENT andMONITORING are the same. But, one way to think about it isthat for a heat process, an organization will monitortemperature in the furnace and measure the hardness of thepart after it has been treated.

    However, it is necessary to measure in order to monitor andmeasurements are monitoring how well the process ismeeting expectations.

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    VERIFICATION is "Confirmation, through the provision ofobjective evidence that specified requirements have beenfulfilled"

    or VERIFICATION is: "The act of reviewing, inspecting , testing ,

    checking, auditing or otherwise establishing anddocumenting whether items, processes , services, ordocuments conform to specified requirements".

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    MONITORING & VERIFICATION and MEASUREMENT &VERIFICATION (M&V) implies continuous collection ofobjective data about some monitored and previouslydefined process or part thereof and their comparison withpreviously defined desired values.

    By carrying out an M&V procedure, it becomes possible toactually control energy flows, evaluate results achievedthrough energy efficiency measures (EEM) and ensurereliable planning of energy requirements for the system towhich the M&V procedure refers.

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    ESCO or Energy Service Company or Energy SavingsCompany is a commercial or non-profit business providinga broad range of comprehensive energy solutions includingdesigns and implementation of energy savings projects,retrofitting (refers to the addition of new technology orfeatures to older systems), energy conservation (refers to

    reducing energy through using less of an energy service,energy infrastructure outsourcing, power generation andenergy supply and risk management).

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    The International Performance Measurement andVerification Protocol (IPMVP) defines standard terms andsuggests best practice for quantifying the results of energy

    efficiency investments and increase investment in energy andwater efficiency, demand management and renewable energyprojects. The IPMVP was developed by a coalition ofinternational organizations (led by the United StatesDepartment of Energy) starting in 1994-1995. The Protocol hasbecome the national measurement and verification standard inthe United States and many other countries.

    A major driving force was the need for a common protocol toverify savings claimed by Energy Service Companies (ESCOs)implementing Energy Conservation Measures (ECM). Theprotocol is a framework to determine water and energy savingsassociated with ECMs.

    14

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    Get support from thetop.

    Quantify energyusage.

    Identify management

    strengths andweaknesses. Analyze

    stakeholders' needs. Anticipate barriers to

    implementation.

    Develop a policystatement.

    Set objectives and

    targets. Develop detailed

    action plans. Organize roles and

    responsibilities.

    Initiate priorityactions andinvestments.

    Carry out training andraise awareness. Integrate energy and

    environment intobusiness process.

    Communicateperformance.

    Overcome barriers.

    Carry outmanagement audits.

    Review progress.

    Seek continuousimprovement.

    GETCOMMITMENT

    UNDERSTANDING PLAN ANDORGANIZE

    IMPLEMENT CONTROL ANDMONITOR

    A systematic approach of effective energy andenvironmental management

    15

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    E N E R G Y E F F I C I E N C Y A N D

    E N V I R O N M E N T A L P R O T E C T I O N

    Management/shareholders

    (Return on investment and sustainable profits)

    Customers(Value for money)

    Taxpayers(Efficient use of public funds)

    Employees(Comfortable working

    conditions)

    Community(Quality of life)

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    The stakeholdershave an interest in

    energy efficiencyandenvironmental protection

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    PLANNING AND ORGANIZING A WAY FORWARD

    ENERGY POLICY

    COMMITMENT

    IMPLEMENTATION

    APPLICABILITY

    REVIEW

    THRUST A personalmessage from topmanagement witha commitment toregular policyreview

    A new andchallenging

    dimension toenergy andenvironment

    Directive on whichparts of the

    organization arecovered by thepolicy

    Guidance on howthe policyobjectives are tomet

    How anorganizationknows goals havebeen achieved

    Formulating policy

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    IMPLEMENTING THE MANAGEMENTPROGRAM

    The implementation step is driven forward by the tacticalaction plans developed at the planning stage.

    It puts investment in energy and environmental projectsalongside complementary management initiativesdesigned to build on the interest and awareness which iscreated as the management program roll-out begins.

    Priority actions. Training and awareness. Integrating with business processes. Communicating performance. Overcoming barriers to progress.

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    NEW ATTITUDES RESULTS REQUIRED ACTION REQUIREDNEW BEHAVIOR

    "PUSH" Programs "PULL" Process

    Push versus Pull approach

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    CONTROLLING AND MONITORING MANAGEMENT

    PERFORMANCE

    GET

    COMMITMENTUNDERSTANDING

    PLANNING and

    ORGANIZINGIMPLEMENTING

    Reaffirmcommitment.

    Identify changes instakeholder needs.

    Revise policy. Reset objectives and

    targets. Refine action plan. Reallocate roles and

    responsibilities.

    Re-prioritizeinvestments.

    Improve or reruntraining.

    Rethink businessintegration andbarriers toimplementation.

    Revamp auditprocess.

    Improve distributionof audit findings.

    CONTROL and

    MONITORING

    Effective control and monitoring provides the mean for feedback and continuous improvement

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    PERFORMANCE INDICATORS FOR ENERGY ANDENVIRONMENT If you cant measure it, you cant manage it

    Performance can be defined as an ability to complete a task or operation to aspecified standard . The standards may be defined as measures, yardsticks orbenchmarks for assessing deviations of actual performance to that of requiredas a basis for managerial control.

    Overall business performance depends on effective allocation and use ofresources to produce some level of output with the least cost and desiredquality. Traditionally, business performance is measured by money andexpressed by numerous financial ratios.

    Energy performance of a technical device that converts energy from one typeinto another is defined as efficiency and is expressed by a dimensionlessoutput/input ratio .

    Energy performance of an activity is expressed by ratio of energy units per

    units of product .

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    PERFORMANCE MEASUREMENT SYSTEM

    The basic principle of EnMS is that use of energy and otherresources must be measured regularly at the point of useand related to activities that consume the energy or aresource.

    EnMS will need to incorporate a performance measurementsystem that will provide direct and timely information on theactual operation at the point of resources use , so that needed

    adjustments can be made to achieve optimized energy andenvironmental performance .

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    WEB or LAN

    T C P / I P

    T C P / I P

    T C P / I P

    T C P / I P

    T C P / I P T C P / I P

    Heating System

    Electric System

    Refrigeration System

    Cogeneration

    Ventilation System

    Compressed Air System

    Environmental Impact

    Measurements

    Energy Meters

    Performance Monitoring Data Presentation Data Interpretation

    Reporting Data Archive

    Building Automation HVAC Lighting Regulation

    Example of a Web

    Based EEMS

    SUPPORTING INFRASTRUCTURE

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    ENERGYPERFORMANCE

    EnergyUse

    EnergyConsumptionEnergyIntensity

    EnergyEfficiency

    Other

    Conceptual representation of energy performance

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    Measurement

    Input Output

    EnvironmentalImpacts

    Emissions

    ReleasesDischarges

    UTILITY MM

    M

    ENERGY PERFORMANCE =

    AMOUNT OF OUTPUT ENEGY AMOUNT OF INPUT ENERGY

    ENVIRONMENTAL PERFORMANCE =

    DISCHARGES (OR EFFLUENTS OR WASTE)

    OUTPUT UNITS

    Concept of

    PerformanceIndicators inUtilities

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    Causes Effects

    PerformanceVariation

    Time

    EQUIPMENT OPERATIONAL

    METHOD MATERIAL

    MANAGEMENT PEOPLE ENVIRONMENT

    Symbolic Cause-Effect Relationship of InfluencingFactors and Performance Variations