Unit 4

1. Energy Management:
“The judicious and effective use of energy to maximize profits (minimize costs) and
enhance competitive positions”
OR
“The strategy of adjusting and optimizing energy, using systems and procedures so as to
reduce energy requirements per unit of output”

Principles of Energy Management are

• Eliminating unnecessary energy use
• Improving efficiency of energy use
• Buying energy at lower cost
• Adjusting operations to allow purchasing energy at lower prices

Role Of Energy Management

• Analyze equipment performance with respect to energy efficiency
• Ensure proper functioning and calibration of instrumentation required to assess
level of energy consumption directly or indirectly.
• Prepare information material and conduct internal workshops about the topic for
other staff
Energy Management is a never-ending process and goes on throughout the life of an
organization. o one can claim that energy management process has been completed, It’s an
ongoing process and it never ends. Rising energy costs have again made energy management
a priority for facilities managers.
Four basic steps of Energy Management:
1. Identify All opportunities
2. Prioritize activities in the action plan
3. Implement action plan by completing defined activities
4. Make efforts to hold on to action plan and activities
Four important links in the energy management process
1. Energy Manager
2. Energy Audit
3. Energy Auditor
4. Management
Energy Manager:
• plans, regulates and monitors energy use in an organization or facility
• Aim to improve energy efficiency by evaluating energy use and implementing new
policies and changes where necessary
• Does not wait for action to happen and searches for all possible opportunities
• Keep educating himself about the ways and methods to reduce the energy
Energy Audit:
Energy audit is a systematic study or survey to identify how energy is being used in a building
or plant, and identifies energy savings opportunities.”
Definition : “The verification, monitoring and analysis of use of energy including submission
of technical report containing recommendations for improving energy efficiency with cost
benefit analysis and an action plan to reduce energy consumption”.
• Held in the foundation on which energy management process exists
• Improper energy audit not covering all the aspects of energy usages will never results
in sound energy management
Energy Auditor:
• Has to be very sound both technically and commercially
• Should be having rich experience in working of the plants and equipment
• His observations have to be comprehensive and not just limited to select few
Management:
• The primary objective of energy management is to achieve and maintain optimum
energy procurement and utilization throughout the organization which may help in
minimizing energy costs and justifying environmental effects
• Have to take a call over which procedure or action plan has to be implemented
• Although Energy Auditor is expected to weigh pros and cons about any proposed
measure suggested for implementation but role of management in ensuring that proper
budgetary support and framework is provided, is of paramount importance.
• Without knowing how, when and where energy is used, there is no way to gauge the
relative importance of energy management projects. Identifying and tracking energy
use patterns is the first step in any energy program.
• More energy savings may be obtained by simply controlling a system's use (e.g.,
lighting) than by installing more efficient components (e.g., T-8 lamps).
• Most successful energy management programs are found in the best managed and
maintained facilities, not in those with the greatest quantity of technological equipment
Maintenance:
• Good maintenance practices and good energy management go hand in hand. Some of
the highest rates of return on energy conservation are generated simply by performing
maintenance.
• Preventive maintenance is still critical, and reactive maintenance (waiting for a crisis
to occur) is still foolish, despite funding limitations. It is easy to ignore preventive
maintenance when systems are new, calibrations are precise, seals are tight, and heat-
exchanger surfaces are clean. As systems age, these and other items need care.
Maintenance Vs. Energy Management
• Serve different purposes
• One cannot be substituted for the other
• For example, cleaning light-fixture lenses and re lamping them is good maintenance;
installing more efficient lamps and ballasts is good energy management. These
distinctions must be remembered when budgets are being prepared.
Importance of Energy Management
• Energy management is widely acknowledged as the best solution for direct and
immediate reduction of energy consumption
• Managing and reducing energy consumption not only saves money but also helps in
mitigating climate change and enhancing corporate reputation
• Energy should be regarded as a business cost, like raw material or labor
• Substantial reduction in energy bills
Why reduction and control of energy usage is vital for an organization?
1. Reduces costs:
• The most convincing reason for saving energy
• Save up to 20% on fuel cost by managing energy use
2. Reduce risk:
• Helps to reduce risk of energy price fluctuations and supply shortages

3. Reduces undesirable environmental effects :

• Reduces carbon emissions and undesirable environmental effects

• Carbon emissions from energy use dominate the total greenhouse gas emissions of
most organizations

• Reducing carbon footprint helps build a ‘green’ image thereby generating good
business opportunities

• Sound energy management - integral part of carbon management, helps

organizations in effective overall environmental management
Other Significant Advantages
• Energy management creates a better workplace environment for employees by
improving working conditions.
• Can influence supply chains by preferring suppliers who adopt environment
management practices
• Achieve stronger market position by demonstrating ‘green’ credentials
• Improves competitive advantage as most consumers prefer to source from socially
responsible businesses.
 2. Demand side management and Demand Response:
Demand side management (DSM) is a set of strategies that utilities use to reduce or shift energy
demand, while demand response (DR) is a specific strategy that falls under the umbrella of
DSM.
Demand side management:
Demand Side Management (DSM) is strategy electric utilities use to control electricity demand
by incentivizing customers to modify their energy consumption patterns during peak hours or
reduce their overall energy consumption.
DSM programs give utilities more flexibility in balancing the supply and demand of energy
while financially compensating participating customers for changing energy consumption
behaviour. And the planet benefits when utilities can avoid building more CO2-emitting power
plants and use DSM to compensate for the variabilities in solar- or wind-sourced electricity.
• Demand Side Management is a mechanism to influence customer’s CAPABILITY and
WILLINGNESS to reduce electricity consumption.
• Demand Side Management is a utility program aiming to fine-tune consumer’s energy
consumption pattern, according to the utility’s energy production and distribution
capacity.
• Demand Side Management (DSM) programs consist of the planning, implementing and
monitoring activities of electric utility that are designed to encourage consumers to
modify their level and pattern of electricity usage.
• Demand Side Management relies on a combination of using high efficiency equipment
and efficient use of electricity through good operating practice.
• Demand-Side Management (DSM) is the implementation of policies and measures
which serve to control, influence and generally reduce electricity demand.
• DSM aims to improve final electricity-using systems, reduce consumption, while
preserving the same level of service and comfort.
Why is Demand Side Management important?
By managing the timing of demand and reducing demand overall on the customer’s side of the
meter, the utility can avoid having to increase supply. Increasing supply is costly — a cost
passed on to customers in the form of high rates for peak demand hours — and typically
increases CO2 emissions. Utilities can increase supply by purchasing electricity on the open
market, activating stand-by generation resources, or investing in grid upgrades.
objectives of DSM
1. Reliability and Stability:
• DSM provides enhanced reliability to the energy system by reducing overall
demand through energy efficiency and by reducing peak demand through
dispatchable programs.
• It also reduces transmission and distribution costs relative to a supply side resource.
• DSM increases diversity of energy sources.
 2. Low Cost and Affordability:
• The cost of DSM is technology specific and varies relative to other supply side
resources.
• Dispatchable DSM programs can be called when their cost is lower than alternative
market purchases.
• Cost-effective resource planning can ensure that DSM is only procured upto the
point where it is cheaper than supply alternatives.
• DSM can also help low-income customers reduce their energy costs.
Types of DSM Programs:
Following three factors reduce energy consumption (kWh) and peak demand (kW), however,
emphasis differs.
1.Energy Efficiency-emphasis is on reducing overall energy consumption and also peak
demand over several years.
2.Peak Load Management – emphasis is on reducing peak demand consistently over a season.
3.Demand Response – emphasis is on reducing peak demand for short periods of time for a
few days during the year.
Demand Response:
Demand response (DR) refers to programs and strategies that encourage consumers to adjust
their energy usage during peak demand periods or in response to specific signals from utility
providers.
The primary goals of demand response are to improve grid reliability, reduce the need for
additional power generation, and lower overall energy costs.
Demand response support allows generators and loads to interact in an automated fashion in
real time.
Demand response in most cases is targeted at reducing peak demand to reduce the risk of
potential disturbances, avoid additional capital cost requirements for additional plant, and avoid
use of more expensive and/or less efficient operating plant
Types of Demand Response
1. Direct Load Control: Utilities remotely manage certain appliances (like air
conditioners or water heaters) during peak times to reduce load.
2. Price-Based Demand Response: Consumers reduce or shift their energy use in
response to price signals. This can include time-of-use pricing or critical peak pricing,
where prices are higher during peak demand.
3. Incentive Programs: Consumers are offered financial incentives to reduce their
electricity usage during peak periods. This can involve contracts or agreements where
customers commit to reduce load when called upon.
4. Automated Demand Response: Uses technology to automatically reduce or shift
energy consumption based on real-time signals from the utility, often integrated with
smart home systems.
Benefits of Demand Response
• Helps maintain balance between supply and demand, preventing blackouts and
reducing strain on the grid.
• Reduces the need for expensive peak power generation and can lead to lower energy
costs for consumers.
• Decreases reliance on fossil fuel power plants, contributing to lower greenhouse gas
emissions.
• Encourages consumers to be more aware of their energy usage and take an active role
in energy management.

Demand side management (DSM) Demand response (DR)

Definition A set of strategies to reduce or shift A voluntary program that involves

energy demand reducing energy consumption during
peak times

Examples Strategic conservation, peak clipping, A program that financially

load shifting, valley filling, incentives compensates companies who agree to
for purchasing energy efficient temporarily reduce their energy
appliances consumption

Benefits Reduces overall electricity Helps utilities avoid outages, defer

consumption, peak demand, and investments in additional generation
energy consumption through energy capacity, and gain a more reliable grid
efficiency
 3. Energy Benchmarking and Carbon Benchmarking:
Energy Benchmarking:
Energy benchmarking is the process of comparing a building's energy performance against
similar buildings or against established standards. It helps identify opportunities for energy
efficiency improvements, track performance over time, and demonstrate progress in reducing
energy consumption.
energy benchmarking is a vital practice for improving energy efficiency, reducing costs, and
achieving sustainability goals in building/organisation operations.
Benchmarking includes two primary sets of data: internal and external.
1. Internal data includes historical energy or water consumption, preferably at least 12
months of data.
• Helps to identify unique issues that exist within organization and
• patterns that can signal issues that need to be addressed as well as opportunities
for improvement.
2. External factors take into account the consumption patterns and historical data specific
to buildings of similar sizes and in similar industries (retail, commercial,
manufacturing, etc.).
• That information, which is collected through and available from the ENERGY
STAR Portfolio Manager, the EPA’s tool, is used to measure how your business
is performing compared to others that share similar traits.
Key Components
1. Data Collection: Gather data on energy usage, often through utility bills, meters, and
building management systems. Information may include total energy consumption,
building/organisation size, occupancy, and operational hours.
2. Establishing Baselines: Determine a baseline energy usage for the building, which can
be based on historical data or average usage for similar buildings/organisations.
3. Reporting and Analysis: Generate reports that highlight energy performance, identify
trends, and pinpoint areas for improvement.
Benefits
• Helps spot inefficiencies and areas where energy savings can be realized.
• By improving energy efficiency, buildings/organisations can reduce utility bills and
operational costs.
• Supports organizational objectives related to sustainability and greenhouse gas
reduction.
• Energy benchmarking are equipped with the power of data, which can be used for a
variety of initiatives, including developing or improving energy management programs
Carbon Benchmarking:
Carbon benchmarking is the process of measuring and comparing the carbon emissions of an
organization, building, or product against established standards, peers, or best practices.
This helps identify areas for improvement, track progress in reducing carbon footprints, and
align with sustainability goals.
carbon benchmarking is a critical tool for organizations seeking to understand and manage their
carbon footprints, drive emissions reductions, and contribute to global climate goals.
Key Components
1. Data Collection: Gather data on carbon emissions, which may include:
o Direct emissions from sources owned or controlled.
o Indirect emissions from purchased electricity, heat, and steam.
o Other indirect emissions from the value chain.
2. Establishing Baselines: Determine baseline emissions by calculating historical carbon
footprints, which serve as a reference point for future comparisons.
3. Comparison: Compare emissions against:
o Emission benchmarks for similar organizations or sectors.
o Compliance with local or international emissions regulations.
o Leading organizations in sustainability initiatives.
4. Performance Metrics: Use metrics such as carbon intensity (e.g., emissions per unit
of production or revenue) to evaluate performance.
Benefits
• Helps organizations pinpoint areas where emissions can be reduced, such as energy use,
transportation, and waste management.
• Reducing carbon emissions often leads to lower energy costs and operational
efficiencies.
• Assists in meeting government regulations and reporting requirements related to
emissions.

Carbon footprints:
A carbon footprint is defined as the total amount of greenhouse gases, emitted directly or
indirectly by an individual, organization, event, or product, typically expressed in carbon
dioxide equivalents (CO₂e).
It encompasses emissions from various sources, including energy consumption, transportation,
waste generation, and the production of goods and services.
By measuring emissions, individuals and organizations can make informed decisions to reduce
their carbon footprints and contribute to a more sustainable future.
Components of Carbon Footprint
1. Direct Emissions: Emissions from sources that are directly controlled by the entity,
such as:
o Fuel combustion in vehicles and buildings.
o Industrial processes.
2. Indirect Emissions: Emissions from the generation of purchased electricity, steam,
heating, and cooling consumed by the entity.
3. Other Indirect Emissions: Emissions that occur in the value chain, including:
o Supply chain emissions (production of goods and services).
o Transportation and distribution.
o Waste disposal.
o Employee commuting and business travel.
 4. Zero Energy Building, Positive Energy Building and Green Building:

Zero Energy Building (ZEB):

• A building that produces as much energy as it consumes over a specified period,
typically one year, achieving a net energy consumption of zero.
• Minimize energy consumption and achieve a balance between energy used and
produced.
• High energy efficiency in design and systems.
• On-site renewable energy generation (e.g., solar panels).
• Energy-efficient heating, cooling, and lighting systems.
• Advantages:
o Low or zero energy bills due to balanced energy production and consumption.
o Reduces reliance on fossil fuels and lowers greenhouse gas emissions.
o Greater energy independence.
o Often designed with high indoor air quality and thermal comfort.
• Disadvantages:
o Higher Initial Costs for advanced materials and technologies can be a barrier.
o Requires careful planning, design, and engineering to achieve net-zero status.

Positive Energy Building (PEB):

• A building that generates more energy than it consumes over a year, leading to a surplus
of energy that can be fed back into the grid.
• A building that not only meets its own energy needs but also contributes surplus energy
to the community or grid.
• Similar to ZEBs, but with an emphasis on producing excess energy.
• Advanced energy efficiency measures and robust renewable energy systems.
• Advantages:
o Produces surplus energy that can be sold back to the grid, potentially generating
income.
o Significantly lowers greenhouse gas emissions through excess renewable
energy production.
 • Disadvantages:
o Similar to ZEBs, Higher Initial costs for construction and technology can be
high.
o Requires more extensive design considerations to ensure surplus energy
generation.
o May depend on local grid infrastructure for energy distribution and sales.

Green Building:
• A building designed, constructed, and operated to minimize environmental impact and
reduce resource consumption. This concept encompasses a broad range of sustainable
practices.
• Energy efficiency (but not necessarily to the net zero or positive energy extent).
• Sustainable materials, waste reduction, water conservation, and improved indoor air
quality.
• Overall sustainability, including reduced environmental impact, resource efficiency,
and occupant well-being.
• Green Buildings emphasize a holistic approach to sustainability, which includes
energy efficiency but also covers materials, water use, and occupant health.
• Advantages:
o Reduces waste, conserves water, and uses sustainable materials, promoting
environmental stewardship.
o May qualify for incentives, rebates, and favorable regulations.
o Often includes features that enhance indoor air quality and occupant well-being.
• Disadvantages:
o Some green building materials and technologies can have a higher Initial cost,
although savings may be realized over time.
comparison between Zero Energy Buildings (ZEBs) and Green Buildings
• ZEBs specifically achieve a net-zero energy consumption, while green buildings focus
on a broader range of sustainable practices, including energy efficiency but not
necessarily reaching net zero.
• ZEBs prioritize energy generation and consumption balance; green buildings
emphasize overall sustainability, including resource use and occupant health.
• Zero energy buildings may or may not be considered “green” in all areas, such as
reducing waste, using recycled building materials, etc.,