In a current business atmosphere investment in the energy management has become a center of the planned business decisions, mainly for energy-intensive firms where the competitive benefit is swayed by the energy costs. Beyond the corporate-level initiative, the energy efficiency is important for tackling higher emission levels that is the corollary to the industrial growth. Selection of the energy efficiency strategies and plans that work out best for undertaking is very specific to the company and production unit. Most of the industrial plants have now introduced the advanced energy efficient methods and technologies for energy management system.
Thus, way to improve energy efficiency is detecting & examining any possible areas with the measured data as well as evaluate to assess energy cost savings & investment requirement. The energy cost will be reduced through the model whereby company lays down the target for every unit cost of the energy & works back for achieving same by reducing controllable costs. Energy management strategy or plan is basically made from 2 simple building blocks – to get energy cheaper & once obtained, prevent the loss. The energy management represents the structured attempt by companies to address any issue of preventing any losses by driving the energy efficiency or doing carbon audit. Thus, energy management system includes 3 distinct layers:
Use of the data acquisition system that collects electrical and mechanical data that drive the energy efficiency;
Analysis of such data from the perspective of benchmarking, environmental impact and asset management;
Preparation of the actionable report that will provide end-users with,
- Functional issues, their fixes, operational benefits,cost to implement, and savings estimation;
- Cost-benefit analysis for implementation of essential capital improvement plan;
- Measurement & verification report that will quantify benefits to implement operational fixes & capital improvements;
The early adoption of this system has shown for producing positive results that suggest that the pay back time of these initiatives is within weeks and months. Overall, this energy management systems offers companies with an opportunity to improve the energy productivity as well as reduce the environmental impact.
There're the energy service companies that deliver these energy-efficient solutions based over individual cost benefit and assured. Broadly, these models of the services offered by the companies come fee-based consulting, penalty-based consulting or bonus and guaranteed savings with a project financed by a host. Demand for the energy is growing and energy sources also are becoming costlier and scarce. Among various strategies developed for the energy management, using efficient energy and conservation seems as a best choice knowing it is benign & cost-effective.
In the same way, pressure from highly aware consumers & threat of the withdrawal from patronizing the products from companies, which don't practice clean production can compel companies for prioritizing the energy management.