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The What, Why, and How of Energy Management

This article explains what "energy management" is, why it's important, and how you can use it to save energy.

We'll start with the "what" , and then move on to the "why" , and the "how" :

What is energy management?

"Energy management" is a term that has a number of meanings, but we're mainly concerned with the one that relates to saving energy in businesses, public-sector/government organizations, and homes:

The energy-saving meaning

When it comes to energy saving, energy management is the process of monitoring, controlling, and conserving energy in a building or organization . Typically this involves the following steps:

• Metering your energy consumption and collecting the data.
• Finding opportunities to save energy, and estimating how much energy each opportunity could save. You would typically analyze your meter data to find and quantify routine energy waste, and you might also investigate the energy savings that you could make by replacing equipment (e.g. lighting) or by upgrading your building's insulation.
• Taking action to target the opportunities to save energy (i.e. tackling the routine waste and replacing or upgrading the inefficient equipment). Typically you'd start with the best opportunities first.
• Tracking your progress by analyzing your meter data to see how well your energy-saving efforts have worked.

(And then back to step 2, and the cycle continues...)

To confuse matters, many people use "energy management" to refer specifically to those energy-saving efforts that focus on making better use of existing buildings and equipment. Strictly speaking, this limits things to the behavioural aspects of energy saving (i.e. encouraging people to use less energy by raising energy awareness ), although the use of cheap control equipment such as timer switches is often included in the definition as well.

The above four-step process applies either way – it's entirely up to you whether you consider energy-saving measures that involve buying new equipment or upgrading building fabric.

Other meanings

Photo by Valerie Everett

It's not just about saving energy in buildings – the term "energy management" is also used in other fields:

• It's something that energy suppliers (or utility companies) do to ensure that their power stations and renewable energy sources generate enough energy to meet demand (the amount of energy that their customers need).
• It's used to refer to techniques for managing and controlling one's own levels of personal energy. We're far from qualified to say anything more about this!
• It also has relevance in aviation – it's a skill that aircraft pilots learn in some shape or form. We know nothing about aircraft energy management, but we can at least manage a picture of a man on a plane...

Anyway, from now on we will pay no more attention to these other definitions – all further references to "energy management" will be to the energy-saving sort described above.

Home energy management

Whilst energy management has been popular in larger buildings for a long time, it has only recently started catching on in homes. Most homeowners aren't even aware of the term, and take more of a haphazard, flying-blind approach to reducing their energy consumption...

But the monitoring- and results-driven approach used by professional energy managers is just as effective in the home as it is in larger buildings.

So, if you're a homeowner looking to save energy, don't be put off by the fact that this article focuses more on non-residential buildings. Most of the principles that apply to businesses and other organizations are also applicable to homes. Certainly the four-step process introduced above and detailed below is entirely applicable to home energy management.

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Why is it important?

Energy management is the key to saving energy in your organization. Much of the importance of energy saving stems from the global need to save energy – this global need affects energy prices, emissions targets, and legislation, all of which lead to several compelling reasons why you should save energy at your organization specifically.

The global need to save energy

If it wasn't for the global need to save energy, the term "energy management" might never have even been coined... Globally we need to save energy in order to:

• Reduce the damage that we're doing to our planet, Earth. As a human race we would probably find things rather difficult without the Earth, so it makes good sense to try to make it last.
• Reduce our dependence on the fossil fuels that are becoming increasingly limited in supply.

Photo by Kevin Dooley

Wind turbines can only do so much – we humans use a lot of energy!

Controlling and reducing energy consumption at your organization

Energy management is the means to controlling and reducing your organization's energy consumption... And controlling and reducing your organization's energy consumption is important because it enables you to:

• Reduce costs – this is becoming increasingly important as energy costs rise.
• Reduce carbon emissions and the environmental damage that they cause – as well as the cost-related implications of carbon taxes and the like, your organization may be keen to reduce its carbon footprint to promote a green, sustainable image. Not least because promoting such an image is often good for the bottom line.
• Reduce risk – the more energy you consume, the greater the risk that energy price increases or supply shortages could seriously affect your profitability, or even make it impossible for your business/organization to continue. With energy management you can reduce this risk by reducing your demand for energy and by controlling it so as to make it more predictable .

On top of these reasons, it's quite likely that you have some rather aggressive energy-consumption-reduction targets that you're supposed to be meeting at some worrying point in the near future... Your understanding of effective energy management will hopefully be the secret weapon that will enable you to meet those aggressive targets...

How best to manage your energy consumption?

We identified four steps to the energy-management process above. We'll cover each of them in turn:

1. Metering your energy consumption and collecting the data

As a rule of thumb: the more data you can get, and the more detailed it is, the better.

The old school approach to energy-data collection is to manually read meters once a week or once a month. This is quite a chore, and weekly or monthly data isn't nearly as good the data that comes easily and automatically from the modern approach...

The modern approach to energy-data collection is to fit interval-metering systems that automatically measure and record energy consumption at short, regular intervals such as every 15-minutes or half hour. There's more about this on our page about interval data .

Detailed interval energy consumption data makes it possible to see patterns of energy waste that it would be impossible to see otherwise. For example, there's simply no way that weekly or monthly meter readings can show you how much energy you're using at different times of the day , or on different days of the week . And seeing these patterns makes it much easier to find the routine waste in your building.

The crux of the matter is that it rarely makes economic sense to spend time trying to squeeze useful information out of weekly or monthly meter readings when interval metering is readily available, and the detail from interval-metering systems opens up so many more opportunities to save energy.

2. Finding and quantifying opportunities to save energy

The detailed meter data that you are collecting will be invaluable for helping you to find and quantify energy-saving opportunities. We've written an article that explains more about how to analyze your meter data to find energy waste .

The easiest and most cost-effective energy-saving opportunities typically require little or no capital investment.

For example, an unbelievable number of buildings have advanced control systems that could, and should, be controlling HVAC well, but, unbeknown to the facilities-management staff, are faulty or misconfigured, and consequently committing such sins as heating or cooling an empty building every night and every weekend.

(NB "HVAC" is just an industry acronym for H eating, V entilation and A ir C onditioning. It's a term that's more widely used in some countries than others.)

And one of the simplest ways to save a significant amount of energy is to encourage staff to switch equipment off at the end of each working day.

Looking at detailed interval energy data is the ideal way to find routine energy waste. You can check whether staff and timers are switching things off without having to patrol the building day and night, and, with a little detective work, you can usually figure out who or what is causing the energy wastage that you will inevitably find.

Detailed energy data is the key to finding the easiest energy savings (chart created using Energy Lens software )

And, using your detailed interval data, it's usually pretty easy to make reasonable estimates of how much energy is being wasted at different times. For example, if you've identified that a lot of energy is being wasted by equipment left on over the weekends, you can:

• Use your interval data to calculate how much energy (in kWh) is being used each weekend.
• Estimate the proportion of that energy that is being wasted (by equipment that should be switched off).
• Using the figures from a and b, calculate an estimate of the total kWh that are wasted each weekend.

Alternatively, if you have no idea of the proportion of energy that is being wasted by equipment left on unnecessarily, you could:

• Walk the building one evening to ensure that everything that should be switched off is switched off.
• Look back at the data for that evening to see how many kW were being used after you switched everything off.
• Subtract the target kW figure (ii) from the typical kW figure for weekends to estimate the potential savings in kW (power).
• Multiply the kW savings by the number of hours over the weekend to get the total potential kWh energy savings for a weekend.

Also, most buildings have open to them a variety of equipment- or building-fabric-related energy-saving opportunities, most of which require a more significant capital investment. You are probably aware of many of these, such as upgrading insulation or replacing lighting equipment, but good places to look for ideas include the Carbon Trust and Energy Star websites.

Although your detailed meter data won't necessarily help you to find these equipment- or building-fabric-related opportunities (e.g. it won't tell you that a more efficient type of lighting equipment exists), it will be useful for helping you to quantify the potential savings that each opportunity could bring. It's much more reliable to base your savings estimates on real metered data than on rules of thumb alone. And it's critically important to quantify the expected savings for any opportunity that you are considering investing a lot of time or money into – it's the only way you can figure out how to hone in on the biggest, easiest energy savings first.

3. Targeting the opportunities to save energy

Just finding the opportunities to save energy won't help you to save energy – you have to take action to target them...

For those energy-saving opportunities that require you to motivate the people in your building, our article on energy awareness should be useful. It can be hard work, but, if you can get the people on your side, you can make some seriously big energy savings without investing anything other than time.

As for those energy-saving opportunities that require you to upgrade equipment or insulation: assuming you've identified them, there's little more to be said. Just keep your fingers crossed that you make your anticipated savings, and be thankful that you don't work for the sort of organization that won't invest in anything with a payback period over 6 months.

Photo by Alana Elliott

Insulation – it usually works well, even when it looks like this...

Let's hope he's not planning on leaving it like that...

4. Tracking your progress at saving energy

Once you've taken action to save energy, it's important that you find out how effective your actions have been:

• Energy savings that come from behavioural changes (e.g. getting people to switch off their computers before going home) need ongoing attention to ensure that they remain effective and achieve their maximum potential.
• If you've invested money into new equipment, you'll probably want to prove that you've achieved the energy savings you predicted.
• If you've corrected faulty timers or control-equipment settings, you'll need to keep checking back to ensure that everything's still working as it should be. Simple things like a power cut can easily cause timers to revert back to factory settings – if you're not keeping an eye on your energy-consumption patterns you can easily miss such problems.
• If you've been given energy-saving targets from above, you'll need to provide evidence that you're meeting them, or at least making progress towards that goal...
• And occasionally you might need to prove that progress isn't being made (e.g. if you're at your wits' end trying to convince the decision makers to invest some money into your energy-management drive).

Our article on energy-performance tracking explains how best to analyze your metered energy data to see how well you're making progress at saving energy. Like step 2, this step is one that our Energy Lens software has been specifically designed to help with.

Managing your energy consumption effectively is an ongoing process...

At the very least you should keep analyzing your energy data regularly to check that things aren't getting worse . It's pretty normal for unwatched buildings to become less efficient with time: it's to be expected that equipment will break down or lose efficiency, and that people will forget the good habits you worked hard to encourage in the past...

So at a minimum you should take a quick look at your energy data once a week, or even just once a month, to ensure that nothing has gone horribly wrong... It's a real shame when easy-to-fix faults such as misconfigured timers remain unnoticed for months on end, leaving a huge energy bill that could have easily been avoided.

But ideally your energy-management drive will be an ongoing effort to find new opportunities to target (step 2), to target them (step 3), and to track your progress at making ongoing energy savings (step 4). Managing your energy consumption doesn't have to be a full-time job, but you'll achieve much better results if you make it part of your regular routine.

If you found this article useful, might you consider telling your colleagues or mentioning it on your website?

You might also be interested in our other articles on energy management / energy monitoring and targeting .

And you might like to take a look at our Energy Lens software – it's a big help for finding energy waste (step 2) and tracking progress at making savings (step 4):

• See how businesses and other organizations can use Energy Lens to help manage their energy consumption .
• Take a look at some of the charts of energy consumption that Energy Lens makes.
• Download the free trial of Energy Lens.

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Sample Personal Statement Environmental Sustainability and Energy Management (Yale, Duke)

by Talha Omer, M.Eng., Cornell Grad

In personal statement samples by field.

The following personal statement is written by an applicant who was accepted to top graduate Environmental Sustainability and Energy Management programs. Variations of this personal statement got accepted at  Yale  and  Duke . Read this personal statement to get inspiration and understand what a top essay should look like.

You might be interested in reading this Sample Statement of Purpose in Energy and Environment Management .

Sample Personal Statement Environmental Sustainability and Energy Management

As I look down memory lane, these last seven years have shaped me decisively. Today I stand proud, independent and an educated woman who never gave up on herself. Sleep became secondary to meeting the client’s deadlines. Physical pain and a hectic study routine became trivial in front of maintaining good grades. Enjoyment and leisure time became second in front of fulfilling my parents’ dream of enabling me to pursue higher studies. Today, all sacrifices are indeed yet gratefully validated.

Reality struck us when we became victims of Hurricane Katrina. The consequences were and still to date are devastating for my family. My father used to have a healthy, buzzing business in the heart of the city of New Orleans. A split-second moment brought everything to a halt. Everything that followed has been playing catch up in terms of finances. Amongst these solutions, even with a hefty heart, I was to be drawn from school as school was a colossal expensive regardless of the 50% scholarship I had secured. I could see the pain in my parent’s eyes and had to convert their shame into pride. It was time to act!

In the male-dominated society we breed in, males are mostly expected to cater burdening financial needs of their household. On our end, circumstances compelled my mother to step outside the domestic environment and take up teaching. Despite my father’s earnest reluctance, I decided to give home tuition to continue my education and meet the unkind practical demanding world. My resolve then and to date has become to take each day as it comes and contribute the best I can give.

With sheer hard work, I managed to secure a seat at Tulane University. I was ranked among the top 20% of the class. Times were tough; days seemed long; however, I put in my best with each firm footing and could maintain a 3.5 GPA every semester. Under the supervision of Dr Sheena Gabriel, Associate Professor, I was selected in a class of 50 to represent Tulane as a keynote speaker and corresponding author at the 5th International Symposium on Prospects of Biodiesel. Furthermore, I was selected by Dr Gabriel as an Undergraduate Research in the Production of Biodiesel.

Later, seeing my potential in me, Dr Gabriel appointed me as his Undergraduate Researcher to produce biodiesel from sludge with its byproduct as phosphates that can be utilized as fertilizer. In the last semester, my final year project was on Salinity Gradient Solar Pond, the first pilot scale plant ever researched at Tulane. I soon began seeing my future role as an environmental engineer in Energy. Having scored an A in the thesis report and intensely interested in Energy, I decided to embark on my journey in renewable energy systems. I eventually found my calling, and I am excited to invest in my knowledge for the same.

Following my passion as a renewable energy expert, I am currently employed at a Renewable Energy Scottish-based firm, Vestas Energy, as Team Leader – Technical. Ironically, being the only girl in the technical department, I have learnt that woman’s empowerment and equality in the workforce are very important. It is only after coming into the field I can understand the market dynamics of Energy and have been able to grasp the concepts of solar energy and why it is imperative for the world to utilize this alternative.

My current trajectory and career path at Vestas involve Energy Conservation and Audit Program. I represent Vestas Energy for energy audit and conservation of many Colleges and Universities overseeing an area greater than 200,000 sq feet. The roles also complemented with Alternate Energy Development Board for making Vestas Energy an Independent Power Provider with its location in Albany, NY.

To spread awareness, I am the head speaker and organizer of the Vestas Energy Awareness Program, for which we conduct free-of-cost training for universities and corporations regarding Renewable Energy. 

Considering my interest in Energy, I believe there is still a knowledge gap in my skill set. During my tenure with Energy Department, we were informed that GIZ had to conduct the energy conservation and management plan since there was insufficient expertise. This made me realize that even if Energy Department appointed us, many hurdles came our way. The shortfalls need to be addressed, so my short-term goal is to serve Energy Department right after completing my Masters’ Studies. For the first time in our history, an Energy Conservation Program has been implemented on a federal scale.

After I graduate, having understood environmental and Energy management, large-scale government projects under the umbrella of ECA can be undertaken by bridging the gap between Private Sector & Public. In the long haul, working in Energy Department for about five years and studying the market’s energy dynamics, I would like to pursue my PhD and teach.

I believe I can only make a larger impact by imparting my knowledge to the students having studied while simultaneously bridging the gap between the private sector and academic area by providing technical expertise to industrial experts.

Yale offers one of the very few competitive scholarship programs and has objectives that streamline with mine. I want to return to Vestas and contribute with the generous feeling of satisfaction in serving my country. Having studied in the Louise S. McGehee School, where people from various nationalities and religions were grouped, I have a keen interest in working under a diverse body of people, exchanging ideas and, through networking, bringing development opportunities back home.

Yale provides opportunities, and I want to learn the latest renewable energy management technologies. What fantasizes me even more is working where the world’s largest Salinity Gradient Solar Pond is not only functional but also can provide megawatts of Energy. Thus, Yale is a chance to pay back my parents for their relentless hard work and to finally fulfil my dream of pursuing higher studies, regardless of the financial constraints one has.

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This paper proposes a multi-agent system for energy management in a microgrid for smart home applications, the microgrid comprises a photovoltaic source, battery energy storage, electrical loads, and an energy management system (EMS) based on smart agents. The microgrid can be connected to the grid or operating in island mode. All distributed sources are implemented using MATLAB/Simulink to simulate a dynamic model of each electrical component. The agent proposed can interact with each other to find the best strategy for energy management using the java agent development framework (JADE) simulator. Furthermore, the proposed agent framework is also validated through a different case study, the efficiency of the proposed approach to schedule local resources and energy management for microgrid is analyzed. The simulation results verify the efficacy of the proposed approach using Simulink/JADE co-simulation.

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Energy management is the proactive and systematic monitoring, control, and optimization of an organization’s energy consumption to conserve use and decrease energy costs.

Energy management includes minor actions such as monitoring monthly energy bills and upgrading to energy-saving light bulbs. It can mean more extensive improvements like adding insulation, installing a reflective roof covering or improving HVAC (heating and cooling) equipment to optimize energy performance.

Energy management also includes more elaborate activities, such as creating financial projections for commissioning renewable energy services and making other improvements for clean energy consumption and reduced energy costs in coming years.

More sophisticated energy management programs take advantage of technology. For instance, utility tracking software predicts future energy usage and plans energy budgets. Which help a company’s strategic decision makers ensure its energy management strategy correlates with its objectives and financial planning. Enterprise management software uses IoT, advanced connectivity and big data, allowing a corporation to take advantage of energy data analytics for better facility management, and helps with energy consumption and energy management challenges.

With ESG disclosures starting as early as 2025 for some companies, make sure that you're prepared with our guide.

Register for the ebook on GHG emissions accounting

Around the globe, there is a great need to save energy , which impacts prices, emissions targets, and legislation that affects us all. Not only can energy management help reduce the carbon emissions that contribute to global warming, it also helps reduce our dependence on increasingly limited fossil fuels.

According to energystar.gov (link resides outside of IBM), energy use is a US commercial office building’s single largest operating expense. It represents about a third of an enterprise’s typical operating budget and accounts for almost 20% of the nation’s annual greenhouse gas emissions. Energy StarÒ says office buildings waste up to one-third of the energy they consume.

Energy management is even more important in Europe, where the energy supply (link resides outside of IBM) is especially vulnerable to cyberattacks. This is because, on average, EU corporations invest 41% less on information security than American companies. Therefore, European companies need more initiatives that implement energy security solutions and help them safeguard data, access, and networks.

In addition to helping mitigate global problems that result from carbon emissions, energy management programs also bring benefits to corporations.

Having energy management software in place helps control a corporation’s budget and reduce the risk that is associated with energy price increases that can impact a business’s ability to operate. Tracking utility costs and energy efficiency allows corporations to budget more efficiently and gain better insight into overall operational costs. According to Energy Star, decreasing energy use by 10% can lead to a 1.5% increase in net operating income.

Energy monitoring and management not only bring cost savings to a company’s bottom line through decreased usage and consumption but can also mean reduced reliance on sometimes volatile supply chains. Energy management programs can also help companies lower costs through competitive procurement.

Having a strong environmental, social and governance (ESG) foundation helps companies save energy, increase transparency and work toward better sustainability goals.

Energy management solutions that use a single system of record to reduce energy use, cost, time, and the burden of reporting allow clients to manage the impact of environmental risks . While also, identifying efficiency opportunities and assess sustainability risks, thus focusing on ESG strategic outcomes.

Besides saving energy costs and lowering carbon emissions, reducing your company’s carbon footprint also shows the company’s commitment to the environment, which promotes an image of greater sustainability and advocating for green energy. Reducing greenhouse gas emissions leads to having, and being recognized for, greater corporate social responsibility.

A strategic approach to consulting with sustainability experts on your sustainability strategy and roadmap leads to the most effective energy and ESG management . In addition to other benefits, consulting on efforts that can include decarbonization and transition to renewables can also help your business attract new and often younger employees who value the optimization of sustainable energy and renewable energy use and take corporate social responsibility seriously.

Intelligent asset management can create energy efficiency for several industry use cases. Some of these include:

• Buildings:  Managing energy in your offices, factories and other facilities helps save energy and reduce carbon output in various ways.  Intelligent asset management uses technology such as AI, IoT, and analytics to help you inspect and monitor a building’s efficiency, calculate potential impacts to the grid, anticipate failure, and better plan maintenance procedures. Companies that use this technology can increase their productivity and make their facilities more energy-efficient, reducing emissions, mitigating climate risk and extending asset lifecycles. They gain operational insights into clean energy sources, efficient waste management and decarbonization.
• Sustainable supply chains:  Using AI and blockchain, intelligent supply chain automation can help reduce the impact that current supply chain weaknesses are having on your business. A more resilient, sustainable supply chain allows clients to act quickly and confidently and mitigate disruptions. Measuring Scope 3 emissions—indirect emissions that are not caused by a company directly but occurring within its supply chain, from warehousing, transportation and waste operations, among other areas—gives companies a competitive advantage in terms of sustainability. While Scope 3 emissions are out of a company’s direct control, measuring them identifies emission problems in their supply chain and allows them to perhaps affect change. Compared to Scope 1 (direct emissions) and Scope 2 (indirect), Scope 3 emissions generally represent the highest levels of greenhouse gases.
• Manufacturing:  Manufacturing facilities burn numerous fossil fuels and are some of the largest energy consumers. Creating an energy management program to sustainably reduce energy use for manufacturing includes collecting and analyzing energy-efficiency data (from various meters, databases and multiple plant sites) and creating a project management plan. A more IT-based factory floor that uses the Industrial Internet of Things (IIoT) and analytics means better predictive maintenance and quality, which leads to smarter manufacturing. Case studies show that changing energy consumption patterns in manufacturing requires management personnel that are committed to reducing energy use because it requires change, infrastructure investment and possibly retraining.

Energy management also comes with its own set of challenges. Some of these include:

• Not enough data integrity, analysis, or clear benchmarks:  Traditional building management systems and meters that collect data through manual energy audits don’t provide data that lets you see wasteful energy usage patterns. Using an energy management system makes it easier and more convenient to access and use more data about energy consumption. A strong energy management system automatically generates regular, reliable, and customized energy reports.
• Faulty systems, incorrect settings, and poorly maintained equipment:  Scheduled checks that are conducted too infrequently mean wasted time and money. Equipment that breaks down unexpectedly thrusts you into reactive maintenance, which can create challenges and unexpected expenses. In contrast, intelligent energy systems alert you to equipment breakdown and energy wastage immediately. They provide real-time information on energy consumption, and you can set energy KPIs for consistent results. Having a proactive maintenance strategy, with routine and preventive maintenance schedules, means that equipment is serviced regularly and has longer lifespans.
• Failure to plan for energy upgrades:  In-depth energy data lets you make smart decisions about energy retrofits or upgrade initiatives that bring cost savings and a good ROI.

Save energy and decarbonize with intelligent asset management.

Reduce energy and carbon emissions with efficient data centers and more sustainable, secure IT operations.

Accelerate sustainability by managing all your environmental, social, and governance (ESG) indicators in a single platform.

Optimize your real estate and facilities management operations for higher efficiency and sustainability. 

Boost your sustainability journey and energy management efficiency by charting a sustainable and profitable path forward with open, AI-powered solutions and platforms plus deep industry expertise from IBM. 

Automating application resource management should be your first step in the sustainability journey.

Learn how to minimize energy use and embed responsible computing across your IT environment.

Enterprises that want to reduce their carbon footprint should expand their sustainability goals to include green IT and responsible computing.

Unlock the full potential of your enterprise assets with IBM Maximo Application Suite by unifying maintenance, inspection and reliability systems into one platform. It’s an integrated cloud-based solution that harnesses the power of AI, IoT and advanced analytics to maximize asset performance, extend asset lifecycles, minimize operational costs and reduce downtime.

Energy Management

By: Fatih   •  Essay  •  709 Words  •  June 10, 2010  •  3,137 Views

Executive Summary

Energy management is defined as “…the judicious use of energy to accomplish prescribed objectives.” (Turner, 2005, p. xviii). The purpose of our presentation is to increase the awareness of the significance of energy management, to provide some real examples of successful companies applying energy management programs, and to provide information about governmental incentives in regards to this issue.

Energy management falls under the big umbrella of social responsibility and the narrower category of pollution control and environmental management. Today, managers are paying more attention to their company’s impact on and responsibility towards the environment. Therefore, energy management is gaining considerable importance among corporations and managers.

The Environmental Protection Agency has established guidelines for superior energy management. These guidelines provide seven steps, including make commitment, assess performance, set goals, create action plan, implement action plan, evaluate progress, and recognize achievements. Following these steps is just a start for businesses to become environmental leaders.

To help implement energy efficiency, the US government has created many programs to help facilitate this process. One widely known program, ENERGY STAR, is a government-backed program helping businesses and individuals protect the environment through superior energy efficiency.

ENERGY STAR has created a manual illustrating five stages to maximize energy savings. This manual is essential to companies that seek to implement energy management within their organization. For example, lighting consumes a tremendous amount of energy and financial resources. It accounts for approximately 17 percent of all electricity sold in the United States. According to ENERGY STAR, they estimate that if efficient lighting were used in all locations where it has been shown to be profitable throughout the country, the nation’s demand for electricity would be cut by more than 10 percent. This could save nearly $17 billion in ratepayer bills and result in annual pollution reductions. Clearly, the manual created by ENERGY STAR is a helpful guide for substantial savings for business, as well as society.

Governmental agencies do not only set guidelines, but they also reward companies for their effort. Every year, the US Environmental Protection Agency and the US Department of Energy commemorate businesses that have contributed to protecting the environment by using energy management. Energy Star awards companies that “Sustain Excellence and Corporate Commitment” towards energy management. In 2005, two of the companies that were awarded were Hewlett Packard and Lowe’s. Since the first company is a manufacturer and the second, a retailer, these companies implement different energy management programs. However, their common objectives are to save the use of energy and to reduce the impact on the environment.

Energy Management System (EnMS)

To reduce greenhouse gas emissions, one of the most important and cost-effective strategies is “energy efficiency,” which is defined as using less energy to produce an equal or even greater amount of output. Additionally, good energy efficiency initiatives generally increase a company’s overall efficiency, such as by enhancing production and competitiveness, in addition to the environmental advantages. About 20-25 percent of steel makers’ total expenses come from the energy they use, making iron and steel production their biggest user of it. Reduced production costs have consequently become a major concern of the global steel industry. Companies may save 10-30% of their yearly energy use and save expenses by improving their energy management, according to industry experience. Often, all it takes is a few operational modifications. Several of these energy-saving potentials can be realized in the iron and steel industry within one to two years, and in some cases, within a few months.

Introduction

Energy management systems (EnMS) are beneficial in identifying energy-saving possibilities and reaping long-term advantages. As a result of an EnMS, it is possible to improve and maximize energy efficiency constantly. Ongoing energy conservation efforts by all employees are the most important aspect in achieving long-term success (Beihmanis, 2016). Energy-saving technology can be implemented without the need for large capital expenditures by using an EnMS to monitor current consumption and discover new opportunities. Several additional non-energy efficiency advantages result from a successful EnMS, including increased productivity and quality, reduced liability and asset values, and a reduction in energy usage and costs. Some non-energy-related benefits of increased energy efficiency are worth 2.5 times more than the value of decreased energy demand alone (IEA, 2014b) (Lam, 2017). Depending on current operational practices, an EnMS may be able to produce significant energy savings without the need for expensive capital-intensive technological upgrades. A lack of an energy strategy may lead to a lack of promotion and implementation of chances for energy efficiency improvement. These include senior management commitment, low energy costs, inadequate understanding of the subject, and restricted funds.

Creation of Policy Incentives in This Area

Promoting energy efficiency as a means of reducing greenhouse gas emissions has benefits for both the individual and the public sector. When implementing an energy management system, government initiatives play a critical role in overcoming the more general hurdles (usual lack of knowledge) to adoption (Eccleston, 2011). Many additional obstacles to energy efficiency, such as financial viability and a firm’s perception of technical risk, maybe addressed after an EnMS has been effectively implemented by that company. Energy management systems have been demonstrated to directly correlate with government-led programs that promote and motivate businesses to install them. To put it another way, governments can save a lot of money if these programs are well executed. Resources like training, technical help, and benchmarking tools play a critical part in implementing an EnMS in the workplace (Goldberg, 2011). EnMS deployment may be aided by energy management programs that contain these resources.

In addition, they allow businesses to participate in the program more successfully. Typical government incentives for EnMS adoption include exemptions from carbon or energy taxes, technical assistance, and direct financial incentives like subsidies for audits or special programs (Reinaud, 2011). A tax exemption is disputed, but it is important to keep in mind that incentives for the deployment of an EnMS are supposed to last just a limited time so that enterprises may see for themselves the positive impact that an EnMS can have on their operational efficiency. If a business has matured and understands the benefits of EnMS, further financial incentives are often no longer necessary. For example, if a corporation implements an EnMS, the information generated is used to persuade private investors to participate in energy efficiency initiatives, particularly those more capital-intensive (Horvath, 2012). An EnMS method to documenting energy use, energy savings, and cost reductions should help banks better assess the risks and benefits of these initiatives.

Development of an Energy Management System (EnMS)

Energy management may take many forms, and the financial and reputational importance of each area differs. Suppose you are in the business of managing a big estate of office buildings, for example. In that case, an EnMS is a must-have if you want to provide a defined strategy to energy management to buyers, renters, and joint venture partners (Januard, 2006). The EnMS journey might become needlessly protracted or even misdirected if important energy policy insights and goals are not defined from the beginning. As you begin your journey, this guide may help you get off on the right foot by clarifying policy and strategy from the outset.

As a result, ISO 50001 is not a technical standard. It expects specific technology solutions; each EnMS is unique, and the methods used to assess and optimize energy usage will vary even though many of the techniques employed are similar (Bockel-Macal, 2006). An EnMS may concentrate on process and technology modifications rather than strictly monitoring and evaluating current energy usage to reduce or modify consumption. However, both approaches have their merits. Many EnMS will fall somewhere in between these two extremes. LEED is a built-environment technique that originated in the United States but is now used all around the globe. The Building Research Establishment Environmental Assessment Method (BREEAM) was created in the UK, but is now widely recognized in the United States (BREEAM). Both BREEAM and LEED may be used as stand-alone approaches to an organization’s EnMS, even though they were developed primarily as sustainable design techniques (Jelic, 2010). LEED, for example, may serve as the foundation of an energy strategy, and ISO 50001 can give a risk-based approach to energy assessment.

Plan-Do-Check-Act (PDCA) is the foundation of the EnMS process regardless of whether it is modified or adheres to the ISO 50001 standard.

Plan:  Conducting an energy evaluation and building a baseline, benchmark against comparable locations, define goals and targets, generate resources and action plans required to achieve outcomes by the organization’s energy policy.

Do : Implement the strategies that have been devised.

Check:  Processes should be monitored, measured, and reviewed to ensure that the EnMS and energy policy goals are being met and the EnMS is successful.

Act : As you celebrate your successes and move on with your plans to further enhance energy efficiency and the EnMS, you may create new goals.

• This Plan-Do-Check-Act framework provides a procedure for companies to:
• Establish an energy-savings policy and implement it.
• To satisfy the policy, set goals and objectives to accomplish them.
• Analyze and make choices based on energy usage and consumption statistics;
• Results should be assessed.
• Examine the policy’s efficacy;

Energy management must continually be improved. Implementing an EnMS successfully requires following a certain set of processes within the Plan-Do-Check-Act structure to guarantee continuous improvement. Step 1 of the procedure requires top management support and an accurate energy usage baseline (Step 4). Without senior management’s support, no energy management system can perform successfully, and energy savings are difficult to accomplish and verify without a thorough grasp of the existing energy use on-site.

The ISO 50001 – Energy management systems standard

ISO 50001:2011, a voluntary international standard for energy management systems, was developed by the International Organization for Standardization (ISO) in 2011. (ISO). To satisfy the requirements of an EnMS, ISO 50001 was developed (Lanoie, 2011). Energy management standards and regulations from nations such as China and the United States as well as Europe and Asia may be used to improve energy efficiency in countries like China and Korea. In the public and commercial sectors, organizations of all sizes may use the ISO 50001 management system standard, a traditional one for production and service. Management systems that concentrate on quality and the environment may be used in combination with it, or it can stand on its own (Kahlenborn, 2012). Like ISO 9001 (quality management) and ISO 14001 (environmental management), it follows a Plan-Do-Check-Act framework.

Importance of ISO 50001

There are no fixed goals for increasing energy efficiency in the ISO 50001 standard. Users or regulators should take care of the rest of this. each business may put ISO 50001 into practice in line with its energy strategy and set up a mechanism for continuously improving energy efficiency based on its resources and ability (ISO, 2011). When used as part of a broader energy management strategy, standardized EnMS typically results in cost reductions that would not have been possible with custom solutions. Although these enterprises had previously achieved considerable savings over ten years without utilizing a standardized EnMS, they observed quicker improvement in energy performance when adopting a standardized EnMS and participating in the government’s LIEN program (IEA/IIP, 2012).

Benefits and costs of an EnMS for the iron and steel sector

Iron and steel companies stand to gain a great deal from adopting an EnMS since it is a powerful tool for removing energy efficiency-related informational, institutional, and behavioral hurdles that are still present in the industry (McKane, 2008). EnMS deployment may result in a 10-15 percent reduction in facility-level energy consumption within a short period. In addition, beyond the first implementation phase, energy savings may be maintained and, in certain cases, virtually double the initial savings.

Government programs to support EnMS

It is necessary to encourage the usage of an EnMS via government policy in energy management programs. Such government, energy management programs assist enterprises in overcoming obstacles to installing an EnMS and giving direction and support for the implementation process, which is the key advantage (Scheihing, 2007). An efficient energy management system (EnMS) may help address a number of common challenges to energy efficiency, including financial sustainability and the perception of technical risk. It is possible to think of EnMS as a conduit for knowledge that may help overcome the financial and technical obstacles to energy-efficient project implementation. Programs run by the government, for example, may greatly minimize the difficulties businesses face due to a lack of basic knowledge and technical competence by using simple initiatives and then providing direction to help enterprises uncover potential prospects (Mey, 2011). Companies may also establish their own energy savings goals by using benchmarking tools to compare their energy efficiency and best practices to those of other comparable organizations or locations. The first step to implementing an EnMS is to provide organizations with this information and assistance.

Supporting mechanisms for EnMS implementation

Many practical resources are needed to execute an EnMS such as technical support and best practices sharing, benchmarking tools and case studies. EnMS implementation is hampered by many of these resources, but firms are better equipped to get the most out of the program by incorporating them into energy management programs (Reinaud, 2011).

Companies may compare their processes, operations, and systems to sectoral best-in-class operations at other comparable locations via energy performance or best practice benchmarking. Sharing success stories of iron and steel firms using EnMS to reduce their energy use may serve as a powerful motivator for other industries considering energy efficiency as a viable option (Reinaud, 2012). Energy evaluations and cost-benefit assessments, which take into account the many advantages of energy efficiency measures, may be useful for firms new to EnMS and those looking to enhance their current energy management systems. These tools have been shown to work.

Reducing Energy Consumption and Carbon Footprint

However, not all industries are decarbonizing at the same rate. While the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) and the EU have set climate-neutrality goals for 2050, their efforts are now focused on national and regional contexts (Worrel, 2011). We can bring industrial decarbonization to the forefront of global policy discussions by pooling resources. For steel decarbonization investments and innovations to occur, a stable policy environment is required, as the Tracker has shown. After the G7’s most recent energy and climate communiqué, actions are needed to set the foundation for a new industrial policy agenda. The G7 Leaders’ Summit in 2021 is an opportunity for leaders of the world’s most powerful countries to show their full support for this plan.

In the iron and steel industry, energy expenses account for 20-25 percent of total input, therefore cutting down on energy consumption is a priority. The iron and steel sector has shown to reduce energy use while improving production via energy efficiency. An EnMS helps a corporation find the best ways to save energy. EnMS’s systematic continuous improvement technique is one of the most effective strategies to continually enhance energy performance. The iron and steel sector has yet to implement an EnMS, despite the fact that it might save energy and bring other non-energy advantages (up to 2.5 times the value of decreased energy demand). Value-added advantages of energy efficiency and how an EnMS may deliver them cost-effectively are two of the most significant challenges. Each country’s industrial sector has unique needs when it comes to the implementation of EnMS, and these needs must be addressed by government efforts. EnMS adoption is encouraged via energy audits rather than significant capital-intensive technological developments. An EnMS may save companies a significant amount of money in the long run.

Beihmanis, K., & Rosa, M. (2016). Energy management system implementation in Latvian municipalities: from theory to practice. Energy Procedia, 95, 66-70.

Lam, J. S. L., Ko, M. J., Sim, J. R., & Tee, Y. (2017, December). Feasibility of implementing energy management system in ports. In 2017 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1621-1625). IEEE.

Eccleston, C. H., March, F., & Cohen, T. (2011). Inside energy: Developing and managing an ISO 50001 energy management system. CRC Press.

Goldberg, A., Reinaud, J., and Taylor R.P. (2011), Promotion Systems and Incentives for Adoption of Energy Management Systems in Industry – Some International Lessons Learned Relevant for China.

Horvath L. (2012), World Steel Association – Steel Industry & EnMS, Presentation to IIP EnMS Shandong workshop. Retrieved Oct 5, 2014 from http://www.iipnetwork.org/EnMS_WSA_2012.pdf.

Januard, F., Bockel-Macal, S., Vuillermoz, J.C., Leurent, J., and Lebrun, C. (2006) “Dynamic control of fossil fuel injections in EAF through continuous fumes monitoring,” La Revue de Métallurgie-CIT, Juin , pp. 275-280.

Jelic, D.N., Gordic, D.R., Babic, M.J., Koncalovic, D.N., and V.M. Sustersi (2010), Review of existing energy management standards and possibilities for its introduction in Serbia. Thermal Science no. 14 (3):613-623.

Lanoie, P., Laurent-Lucchetti, J., Johnstone, N. and Ambec, S. (2011), Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis. Journal of Economics & Management Strategy, 20: 803–842.

Kahlenborn, W. et al. (2012), Energy Management Systems in Practice – ISO 50001: A Guide for Companies and Organisations, Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).

McKane, A., L. Price, and S. de la Rue du Can (2008), Policies for Promoting Industrial Energy Efficiency in Developing Countries and Transition Economies, for the United Nations Industrial Development Organization, May 2008, Vienna, Austria.

McKane, A., D. Desai, M. Matteini, W. Meffert, R. Williams, and R. Risser (2009), Thinking Globally: How ISO 15001 – Energy Management Can Make Industrial Energy Efficiency Standard Practice, Lawrence Berkeley National Laboratory.

McKane, A., Scheihing, P., and R. Williams (2007), Certifying Industrial Energy Efficiency Performance: Aligning Management, Measurement, and Practice to Create Market Value, Lawrence Berkeley National Laboratory.

Mey, J. (2011), How Can We Facilitate the Introduction of Energy Management Systems (EnMS)?, Paper presented to the ECEEE (European Council for an Energy Efficient Economy) Summer Study, June 2011. Retrieved Oct 10, 2014 from

http://proceedings.eceee.org/visabstrakt.php?event=1&doc=3- 391-11.

Reinaud J. and A. Goldberg (2011), The boardroom perspective: how does energy efficiency policy influence decision making in industry? International Energy Agency and Institute for Industrial Productivity for the IEA Energy efficiency series.

Reinaud, J. and A. Goldberg (2012), Promoting Energy Management Systems through Energy Efficiency Programmes, Incentives and Support – Lessons Learnt from Evaluations in Denmark, Ireland and Sweden.

Worrel, E. (2011), Barriers to energy efficiency: International case studies on successful barrier removal, working paper 14/2011, Development Policy, Statistics and Research Branch, United Nations Industrial Development Organization. Vienna.

Therkelsen, P., Sabouni, R., McKane, A., and Scheihing, P. (2013), Assessing the Costs and Benefits of the Superior Energy Performance Program, 2013 ACEEE Summer.

International Energy Agency (IEA) (2011), 25 Energy Efficiency Policy Recommendations.

International Energy Agency (2013), Tracking Clean Energy Progress 2013 – IEA Input to the Clean Energy Ministerial.

OECD (2013), Improving Energy Efficiency in the Iron and Steel Sector: Opportunities and Financing Challenges [DSTI/SU/SC(2013)18], OECD, Paris, France.

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Essay on energy scenario in india: top 6 essays | energy management.

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Here is a compilation of essays on ‘Energy Scenario in India’ for class 8, 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Energy Scenario in India’ especially written for school and college students.

Essay on Energy Scenario in India

Essay Contents:

• Essay on State-Wise Electricity Consumption and Conservation Potential in Indian Economy

Essay # 1. Introduction to Energy Scenario in India:

India has made rapid strides towards economic self-reliance over the last few years. Impressive progress has been made in the fields of industry, agriculture, communication, transport and other sectors necessitating growing consumption of energy for developmental and economic activities.

If India is to achieve the targeted growth in GDP, it would need commensurate input of energy, mainly commercial energy in the form of coal, oil, gas and electricity.

However, India’s fossil fuel reserves are limited. The known reserves of oil and natural gas may last hardly for 18 and 26 years respectively at the current reserves to production ratio. India has huge proven coal reserves (84 billion tones), which may last for about 200 years but the increasing ash content in Indian coal as well as associated greenhouse gas emissions are the major concern. Energy being an important element of the infrastructure sector has to be ensured its availability on sustainable basis.

On the other hand, the demand for energy is growing manifold and the energy sources are becoming scarce and costlier. Among the various strategies to be evolved for meeting energy demand, efficient use of energy and its conservation emerges out to be the least cost option in any given strategies, apart from being environmentally benign. The steps to create sustainable energy system begin with the wise use of resources: energy efficiency is the mantra that leads to sustainable energy management.

Energy Demand and Supply:

On the energy demand and supply side, India is facing severe shortages, 70% of the total petroleum product demand is being met by imports, imposing a heavy burden on foreign exchange. Country is also facing peak power and average energy shortages of 12% and 7% respectively. The per capita energy consumption in India is too low as compared to developed countries, which is just 4% of USA and 20% of the world average.

Essay # 2. Energy Summary of India:

Overall Production and Consumption:

India is both a major energy producer and consumer. India currently ranks as the world’s eleventh greatest energy producer, accounting for about 2.4% of the world’s total annual energy production and as the world’s sixth greatest energy consumer, accounting for about 3.3% of the world’s total annual energy consumption. Despite its large annual energy production, India is a net energy importer, mostly due to the large imbalance between oil production and consumption.

i. Petroleum:

India’s proved oil reserves are currently estimated (as of January 2005) at about 5 billion barrels or about 4.5% of the world total. Most of these reserves lie offshore near Mumbai and onshore in Assam state.

However, exploration is still happening and India’s off-shore and on-shore basins may contain as much as 11 billion barrels. India presently ranks as the 25th greatest producer of crude oil, accounting for about 1% of the world’s annual crude oil production.

About 30% of India’s energy needs are met by oil and more than 60% of that oil is imported. A strong growth in oil demand has resulted in India’s annual petroleum consumption increasing by more than 75% from what it was a decade ago and petroleum consumption is projected to climb to about 3 million barrels per day by 2010. India is currently the world’s sixth greatest oil consumer, accounting for about 2.9% of world’s total annual petroleum consumption.

ii. Natural Gas:

India’s natural gas reserves are currently estimated (as of January 2005) at about 29-32 trillion cubic feet (tcf), or about 0.5% of the world total. Most of these reserves lie offshore northwest of Mumbai in the Arabian Sea and onshore in Gujarat state.

India dos not yet rank in the top 20 of the world’s greatest natural gas consumers, but that will soon change. Natural gas has experienced the fastest rate of increase of any fuel in India’s primary energy supply; demand is growing at about 4.8% per year and is forecast to rise to 1.2 tcf per year by 2010 and 1.6 tcf per year by 2015.

India’s has huge proven coal reserves, estimated (as of January 2005) at more than 90 billion tons or about 10% of the world’s total. Most of these reserves are relatively high ash bituminous coal and are located in Bihar, West Bengal and Madhya Pradesh states. At the current level of production and consumption, India’s coal reserves would last more than two hundred years.

India is currently the third-largest coal-producing country in the world (behind China and the United States) and accounts for about 8.5% of the world’s annual coal production. India is also currently the third-largest coal consuming country (behind the China and the United States) and accounts for nearly 9% of the world’s total annual coal consumption. More than half of India’s energy needs are met by coal and about 70% of India’s electricity generation is now fuelled by coal.

The annual demand for coal has been steadily increasing over the past decade and is now nearly 50% greater than it was a decade ago. Even though India is able to satisfy most of its country’s coal demand through domestic production, less than 5% of its reserves is coking coal used by the steel industry. As a result, India’s steel industry imports coking coal, mainly from Australia and New Zealand, to meet about 25% of its annual needs.

iv. Electricity:

India is presently the sixth-greatest electricity generating country and accounts for about 4% of the world’s total annual electricity generation. India is also currently ranked sixth in annual electricity consumption, accounting for about 3.5% of the world’s total annual electricity consumption.

Overall, India’s need for power is growing at a prodigious rate; annual electricity generation and consumption in India have increased by about 64% in the past decade and its projected rate of increase (estimated at as much as 8-10% annually, through the year 2020) for electricity consumption is one of the highest in the world.

India is currently ranked fifth in the world in terms of total installed electricity generating capacity and accounts for about 3.5% of the world total. Hydroelectric capacity represents about one-fourth of India’s total installed capacity and overall, India is currently ranked sixth-largest in the world in that category (accounting for about 3.7% of the world’s installed hydroelectric generating capacity). There is a large amount of hydroelectric capacity in construction and planning stages across the country.

National Energy Plan for any country is framed to manage and regulate the use of energy efficiently to meet the county’s energy demand and harnessing the available energy resources and as per the prevalent energy scenario across the globe and at the same time meeting the national & international regulations on energy use keeping in view the impact on environmental during exploration and used of energy.

Essay # 3. Energy Policy of India:

National Energy Plan of any country elaborates the various policies adopted by the government related to the use and exploration of energy resources keeping in view the county’s interest. The energy policy of India is largely defined by the country’s burgeoning energy deficit and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy.

About 70% of India’s energy generation capacity is from fossil fuels, with coal accounting for 40% of India’s total energy consumption followed by crude oil and natural gas at 24% and 6% respectively. India is largely dependent on fossil fuel imports to meet its energy demands — by 2030, India’s dependence on energy imports is expected to exceed 53% of the country’s total energy consumption.

In 2009-10, the country imported 159.26 million tonnes of crude oil which amounts to 80% of its domestic crude oil consumption and 31% of the country’s total imports are oil imports. The growth of electricity generation in India has been hindered by domestic coal shortages and as a consequence, India’s coal imports for electricity generation increased by 18% in 2010.

India has the world’s fifth largest wind power industry, with an installed capacity of 11800 MW. India has the world’s 3rd largest coal reserves. Due to rapid economic expansion, India has one of the world’s fastest growing energy markets and is expected to be the second-largest contributor to the increase in global energy demand by 2035, accounting for 18% of the rise in global energy consumption.

Given India’s growing energy demands and limited domestic fossil fuel reserves, the country has ambitious plans to expand its renewable and nuclear power industries. India has the world’s fifth largest wind power market and plans to add about 20GW of solar power capacity by 2022.

India also envisages increasing the contribution of nuclear power to overall electricity generation capacity from 4.2% to 9% within 25 years. The country has five nuclear reactors under construction (third highest in the world) and plans to construct 18 additional nuclear reactors (second highest in the world) by 2025.

Major Thrust Areas of India’s Energy Policy:

The India’s Energy Policy has thrust on the following areas:

1. Energy Conservation:

Energy conservation has emerged as a major policy objective, and the Energy Conservation Act, 2001 was passed by the Indian Parliament in September 2001, 35.5% of the population still lives without access to electricity.

This Act requires large energy consumers to adhere to energy consumption norms; new buildings to follow the Energy Conservation Building Code; and appliances to meet energy performance standards and to display energy consumption labels. The Act also created the Bureau of Energy Efficiency to implement the provisions of the Act.

2. Rural Electrification:

(i) The key development objectives of the power sector is supply of electricity to all areas including rural areas as mandated in Section 6 of the Electricity Act. Both the central Government and state governments would jointly endeavour to achieve this objective at the earliest. Consumers, particularly those who are ready to pay a tariff which reflects efficient costs have the right to get uninterrupted twenty four hours supply of quality power.

About 56% of rural households have not yet been electrified even though many of these households are willing to pay for electricity. Determined efforts should be made to ensure that the task of rural electrification for securing electricity access to all households and also ensuring that electricity reaches poor and marginal sections of the society at reasonable rates is completed within the next five years. India is using Renewable Sources of Energy like Hydel Energy, Wind Energy, and Solar Energy to electrify villages.

(ii) Reliable rural electrification system will aim at creating the following:

(a) Rural Electrification Distribution Backbone (REDB) with at least one 33/11 kv (or 66/11 kv) substation in every Block and more if required as per load, networked and connected appropriately to the state transmission system.

(b) Emanating from REDB would be supply feeders and one distribution transformer at least in every village settlement.

(c) Household Electrification from distribution transformer to connect every household on demand.

(d) Wherever above is not feasible (it is neither cost effective nor the optimal solution to provide grid connectivity) decentralized distributed generation facilities together with local distribution network would be provided so that every household gets access to electricity.

This would be done either through conventional or non-conventional methods of electricity generation whichever is more suitable and economical. Non-conventional sources of energy could be utilized even where grid connectivity exists provided it is found to be cost effective.

(e) Development of infrastructure would also cater for requirement of agriculture & other economic activities including irrigation pump sets, small and medium industries, khadi and village industries, cold chain and social services like health and education.

(iii) Particular attention would be given in household electrification to dalit bastis, tribal areas and other weaker sections.

(iv) Rural Electrification Corporation of India, a Government of India enterprise will be the nodal agency at Central Government level to implement the programme for giving access to electricity to all the households in next five years. Its role is being suitably enlarged to ensure timely implementation of rural electrification projects.

(v) Targeted expansion in access to electricity for rural households in the desired timeframe can be achieved if the distribution licensees recover at least the cost of electricity and related O&M expenses from consumers, except for lifeline support to households below the poverty line who would need to be adequately subsidized. Subsidies should be properly targeted at the intended beneficiaries in the most efficient manner.

Government recognizes the need for providing necessary capital subsidy and soft long-term debt finances for investment in rural electrification as this would reduce the cost of supply in rural areas. Adequate funds would need to be made available for the same through the Plan process. Also commensurate organizational support would need to be created for timely implementation. The Central Government would assist the State Governments in achieving this.

(vi) Necessary institutional framework would need to be put in place not only to ensure creation of rural electrification infrastructure but also to operate and maintain supply system for securing reliable power supply to consumers. Responsibility of operation & maintenance and cost recovery could be discharged by utilities through appropriate arrangements with Panchayats, local authorities, NGOs and other franchisees etc.

(vii) The gigantic task of rural electrification requires appropriate cooperation among various agencies of the State Governments, Central Government and participation of the community. Education and awareness programmes would be essential for creating demand for electricity and for achieving the objective of effective community participation.

The electricity industry was restructured by the Electricity Act 2003, which unbundled the vertically integrated electricity supply utilities in each state of India into a transmission utility, and a number of generating and distribution utilities. Electricity Regulatory Commissions in each state set tariffs for electricity sales.

The Act also enables open access on the transmission system, allowing any consumer (with a load of greater than 1 MW) to buy electricity from any generator. Significantly, it also requires each Regulatory Commission to specify the minimum percentage of electricity that each distribution Utility must source from renewable energy sources.

The introduction of Availability based tariff has brought about stability to a great extent in the Indian transmission grids.

3. Bio-Fuels:

In India, about 6,00,000 km 2 of waste land that is available and over 3,00,000 km 2 is suitable for Jatropha cultivation. Once this plant is grown, it has a useful lifespan of several decades. During its life Jatropha requires very little water when compared to other cash crops. It is estimated that renewable and carbon neutral biomass resources of India can replace present consumption of all fossil fuels if used productively.

4. Wind Power Showcase:

Another major thrust area is in the wind energy harnessing. India is proving incentives to the foreign companies to invest in wind energy sector. Gujrat and Tamil Nadu are the leading states in wind energy harnessing.

The state-owned Oil and Natural Gas Corporation (ONGC) acquired shares in oil fields in countries like Sudan, Syria, Iran, and Nigeria – investments that have led to diplomatic tensions with the United States. Because of political instability in the Middle East and increasing domestic demand for energy, India is keen on decreasing its dependency on OPEC to meet its oil demand, and increasing its energy security.

Several Indian oil companies, primarily led by ONGC and Reliance Industries, have started a massive hunt for oil in several regions in India including Rajasthan, Krishna-Godavari and north-eastern Himalayas. The proposed Iran-Pakistan-India pipeline is a part of India’s plan to meet its increasing energy demand.

6. Nuclear Power:

India boasts a quickly advancing and active nuclear power program. It is expected to have 20 GW of nuclear capacity by 2020, though they currently stand as the 9th in the world in terms of nuclear capacity.

India has been using imported enriched uranium and is under International Atomic Energy Agency (IAEA) safeguards, but it has developed various aspects of the nuclear fuel cycle to support its reactors. Development of select technologies has been strongly affected by limited imports.

Use of heavy water reactors has been particularly attractive for the nation because it allows Uranium to be burnt with little to no enrichment capabilities. India has also done a great amount of work in the development of a Thorium centered fuel cycle. While Uranium deposits in the nation are extremely limited, there are much greater reserves of Thorium and it could provide hundreds of times the energy with the same mass of fuel.

The fact that Thorium can theoretically be utilized in heavy water reactors has tied the development of the two. A prototype reactor that would burn Uranium-Plutonium fuel while irradiating a Thorium blanket is under construction at the Madras/Kalpakkam Atomic Power Station. Uranium used for the weapons program has been separate from the power program, using Uranium from scant indigenous reserves.

7. Hydrogen Energy:

Hydrogen Energy program started in India after joining the IPHE (International Partnership for Hydrogen Economy) in the year 2003. There are nineteen other countries including Australia, USA, UK, Japan are members. This globe partnership helps India to set up commercial use of Hydrogen gas as an energy source. This will implemented through Public Private Partnership.

8. Solar Energy:

India’s theoretical solar potential is about 5000 T kWh per year (i.e. ~ 600 TW), far more than its current total consumption. Currently solar power is prohibitive due to high initial costs of deployment. However India’s long-term solar potential could be unparalleled in the world because it has the ideal combination of both high solar insolation and a big potential consumer base density. With a major section of its citizens still surviving off-grid, India’s grid system is considerably under-developed.

Availability of cheap solar can bring electricity to people, and bypass the need of installation of expensive grid lines. Also a major factor influencing a region’s energy intensity is the cost of energy consumed for temperature control.

Since cooling load requirements are roughly in phase with the sun’s intensity, cooling from intense solar radiation could make perfect energy-economic sense in the subcontinent, whenever the required technology becomes competitively cheaper.

9. Electricity Trading with Neighbour Countries:

Despite low electricity per capita consumption in India, the country is going to achieve surplus electricity generation during the 12fth plan (2012 to 2017) period provided its coal production and transport infrastructure is developed adequately.

Surplus electricity can be exported to the neighbour countries in return for natural gas supplies from Pakistan, Bangladesh and Myanmar. Bangladesh, Myanmar and Pakistan are producing substantial natural gas and using for electricity generation purpose. India can supply its surplus electricity to Pakistan and Bangladesh in return for the natural gas imports by gas pipe lines.

Similarly India can develop on BOOT basis hydro power projects in Nepal, Myanmar and Bhutan. India can also enter into long term power purchase agreements with China for developing the hydro power potential in Brahmaputra river basin of Tibet region. India can also supply its surplus electricity to Sri Lanka by undersea cable link. There is ample trading synergy for India with its neighbour countries in securing its energy requirements.

Essay # 4. Energy Conservation in India:

The strategy developed to make power available to all by 2012 includes promotion of energy efficiency and its conservation in the country, which is found to be the least cost option to augment the gap between demand and supply.

Nearly 25,000 MW of capacity creation through energy efficiency in the electricity sector alone has been estimated in India. Energy conservation potential for the economy as a whole has been assessed as 23% with maximum potential in industrial and agricultural sectors.

Energy Conservation Act:

Considering the vast potential of energy savings and benefits of energy efficiency, the Government of India enacted the Energy Conservation Act, 2001. The Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country.

Indian Industry Program for Energy Conservation (IIPEC) under IIPEC the task groups for textile, cement, pulp and paper, fertilizer, chlor-alkali and aluminium have been formed. Each task force is being headed by stakeholders and BEE is actively involved in organizing the programs. The members from the industry participate in this project for sharing best practices, declaring their voluntary targets and benchmarking, etc.

The salient features of Energy Conservation Act 2001 are:

EC Act 2001 empowers the Union Government and in some instances the State Government to:

i. Notify energy-intensive industries, establishments and commercial buildings as designated consumers.

ii. Prescribe energy consumption norms and standards for designated consumers.

iii. Direct designate consumers to appoint certified energy managers for efficient use of energy.

iv. State Government to amend the energy conservation building codes to suit regional and local climatic conditions.

v. Direct owners of commercial building to comply with the energy conservation building codes.

vi. Direct mandatory display of labels on notified equipment and appliances.

vii. Specify energy consumptions standards for notified equipment and appliances.

viii. Prohibit manufacture, sale, purchase and import of notified equipment and appliances not confirming to standards.

ix. Under the provision of this Act the Bureau of Energy Efficiency (BEE) was established with effect from 1.03.2002.

x. The mission of the BEE is to institutionalize energy efficiency services, promote energy efficiency delivery mechanisms and provide leadership for improvement of energy efficiency in all sectors of the economy.

Importance of Energy Conservation:

In a scenario where India tries to accelerate its development process and cope with increasing energy demands, conservation and energy efficiency measures are to play a central role in our energy policy. A national movement for energy conservation can significantly reduce the need for fresh investment in energy supply systems in coming years. It is imperative that all-out efforts are made to realize this potential.

Energy conservation is an objective to which all the citizen in the country can contribute. Whether at household of a factory, a small shop or a large commercial building, a farmer or a office worker, every user and producer of energy can and must make this effort for his own benefit, as well as that of the nation.

Potential for Energy Conservation:

i. India’s energy intensity per unit of GDP is higher compared to Japan, US and Asia by 3.7, 1.55 and 1.47 times respectively. This indicates inefficient use of energy but also substantial scope for energy saving.

ii. One unit of energy saved at the consumer end avoids nearly 2.5 to 3 times of capacity augmentation due to PLF, auxiliary consumption and T and D losses.

iii. The conservative estimate of potential of energy saving in India is creating nearly 25,000 MW of new capacity.

The main reasons for higher specific energy consumption in Indian industries are obsolete technology, lower capacity utilization and poor operating and maintenance practices. EC has received increased attention in India since the mid-seventies but its impact is felt at a low face due to inhibiting attitudes, insufficient technical know-how, market distortions, high cost of efficient end use devices, capital shortage, etc. There is a need to design interventions in terms of policies and institutions which address these issues and create incentives for energy conservation.

Now that the EC Act, 2001 has given new impetus to the energy conservation issues and the ESCOs and the financial institutions are in place to implement the EC projects through performance guarantee contract mechanisms, energy conservation projects are bound to be successful in the future.

Essay # 5. Progress made in Energy Conservation in India:

The progress made by India in energy conservation can be seen in the following three areas:

(A) Policy and Institutional.

(B) End Users.

(C) Technology.

(A) Policy and Institutional:

Recognizing the fact that efficient use of energy and its conservation is the least-cost option to mitigate the gap between demand and supply. Government of India has enacted the Energy Conservation Act – 2001 and established bureau of energy efficiency.

The mission of BEE is to develop policy and strategies with a thrust on self-regulation and market principles, within the overall framework of the EC Act with the primary objective of reducing energy intensity of the Indian economy.

The EC Act provides for institutionalizing and strengthening delivery mechanism for energy efficiency services in the country and provides the much-needed coordination between the various entities.

In terms of time frame, energy policy of India has the following objectives to achieve:

Energy Policy of India-Short Term:

i. Maximize returns from the existing assets.

ii. Reduce losses in transportation and in end use.

iii. Initiate action to reduce energy intensity of different consuming sectors and promote conservation through organizational and fiscal measures.

iv. Initiate steps to meet the basic energy need of rural and urban households so as to reduce the existing inequities.

v. Maximize satisfaction of demand for energy from indigenous resources.

Energy Policy of India-Medium Term:

i. Progressive steps to substitute petroleum products by coal, natural gas and electricity.

ii. Action for accelerated development of all renewable energy resources especially hydro potential.

iii. Promote programs to achieve self-reliance in energy sector.

iv. Create appropriate organizational changes in consistent with the overall energy strategy.

Energy Policy of India-Long Term:

i. Promote an energy supply system, largely based on renewable sources of energy.

ii. Promote technologies of production, transportation and use of energy that are environmentally begin and cost effective.

Under the energy policy of India, the important features of energy conservation Act 2001 include:

(a) Standards and Labelling:

Evolve minimum energy consumption standards for notified equipment and appliances. Prohibit manufacture, sale and import of equipment and appliances not confirming to standards. Introduce mandatory labelling to enable consumers to make informed choice.

This program will initially focus on energy policy issues of energy efficiency improvement in unorganized sectors such as domestic and agriculture sectors through improvement of designed energy efficiencies of energy consuming appliances and providing this information on comparative basis in the form of energy labels.

(b) Designated Consumers:

Schedule to EC Act provides list of 15 energy intensive industries and other establishments to be notified as designated consumers (DC). DCs to appoint or designate energy managers. Get energy audits conducted by accredited energy auditors and implement techno-economic viable recommendations. Comply with norms of specific energy consumption fixed and submit report on steps taken.

This program will initially focus on energy policy issues of energy efficiency improvement in organized sectors such as energy intensive industries and commercial sector through establishment of energy management system, capacity building of energy professionals, implementation of energy audits, establishments of specific energy consumption norms and support to consumers on providing information on authentic energy data.

(c) Energy Conservation Building Codes:

The new buildings are required to be designed and built with energy efficiency consideration right from the initial stages itself. The development of energy conservation building codes is necessary for this purpose. The codes would be applicable to commercial buildings constructed after the relevant rules are notified under the Energy Conservation Act.

The bureau would constitute committee of experts for preparation of energy conservation building codes for different climatic zones. Central Government to prepare guidelines on ECBC. To be modified by states to suit local climatic conditions. To be applicable to new buildings having connected load of 500 kW or more.

Promotional Provisions to Support EC Act:

Various promotional provisions in support of the EC Act have been initiated by the Bureau of Energy Efficiency, which are briefly explained below:

1. Indian Industry Program for Energy Conservation (IIPEC):

This voluntary program of sharing of best practices, undertaking and specific energy consumption targets has full acceptance in the 8 sectors of industry including aluminium, cement, chlor-alkali, fertilizer, pulp and paper, petrochemicals, refinery and textile sector. Best practices have been recorded and published through CDs and also incorporated in BEE’s website which is being updated periodically for use of designated consumers.

2. Voluntary EC Policy Declaration by Indian Industry:

Industries have been approached to declare their top management commitments on energy conservation. 44 industrial units under the national campaign on energy conservation 2005 declared their energy management policies and have committed to reduce their specific energy consumption levels.

3. Small Group Activities on Energy Conservation:

BEE supports designated consumers in improving their energy efficiency through launch of voluntary programs. BEE launched small group activity focused on energy conservation in 4 industrial units in textile and cement sector. Feedback received from the units indicates that about 5% savings through housekeeping and no cost measures are possible through this concept.

4. National Energy Conservation Awards:

Industrial units have been motivated through national energy conservation award scheme. Electricity savings achieved by the participating industrial units. Response from the first time introduced schemes for government buildings and commercial buildings (private sector) was also encouraging.

Mandatory Provisions of the EC Act:

1. Strengthening Energy Management and Energy Auditing Capabilities of Energy Professionals:

To strengthen the energy management and energy auditing capabilities in the country, first and second national certification examination for energy managers and energy auditors has been successfully conducted in 2004 and 2005 all over the country. Certified energy managers will be required to be appointed or designated by designated consumers whereas certified energy auditors will be considered for accreditation.

2. Accreditation of Energy Auditors:

Many energy auditing agencies have been cleared for accreditation on the bases of their energy auditing capabilities and institutional set up. These auditors have carried out over 2000 energy audit studies during 2003-05.

3. Fixation of Norms for Different Industrial Sector:

To start with cement and pulp and paper sectors have been selected for fixation of specific energy consumption norms.

4. Manuals and Codes for Standardizing the Process of Energy Auditing:

Draft code on 7 technologies (equipment) lighting systems; dryers; cogeneration plants, electric motors, electric transformers, fluid piping systems (network), insulation and air conditioners/ chillers (HVAC) are prepared. The energy performance codes would provide a definite method of field testing of utility equipment in the designated consumer premises. The energy performance codes would improve credibility of energy audits and provide industry and energy managers as to what to expect from the energy audit.

5. Notification of Designated Agencies:

States governments and union territories have notified state level designated agencies for the prose of implementing EC Act within the state.

6. Standards and Labelling:

The preparatory work relating to standard and labelling program of electrical appliances including household refrigerators, window air conditioners, distribution transformers, fluorescent tube lights and ballasts has been initiated.

7. Energy Conservation Building Codes (ECBC):

ECBC structure and analysis methodology has been prepared. Data collection and stringency analysis has also been completed and the first draft of ECBC for stakeholder review is ready.

(B) End Users:

1. Energy Efficiency in Indian Industry:

Industry is the major energy consumer utilizing about 50% of the total commercial energy use in India. The six key industries namely aluminium, cement, fertilizers, pulp and paper, petrochemicals and steel – consumes about 65% of the total energy use in India. The energy intensity in some of these industries is reported to be higher than the industries in developed countries.

One of the main reasons for higher energy use is the presence of obsolete and energy inefficient processes in some of these sectors. To promote adoption of energy efficient processes, they are identified as designated consumers under schedule to the energy conservation Act.

By complying with various provisions of EC Act, as applicable to designated consumers namely meeting specific energy consumption norms, conduct of regular energy audits and implementation of techno economic viable recommendations and establishment of energy management system through appointment of certified energy manager is expected to boost adoption of energy efficient processes and technologies.

2. Energy Efficiency in Government Buildings:

Bureau of energy efficiency has undertaken energy audit studies in 8 government buildings to set up an example for private buildings to pursue similar efforts. The buildings included. Rashtrapati Bhawan, Prime Minister’s Office and Defence Ministry blocks in South Block, Rail Bhawan, Sanchar Bhawan, Shram Shakti Bhawan, Transport Bhawan, R and R Hospital, Terminal I, Terminal II and Cargo Sections of Delhi Airport and AIIMS. Energy savings potential between 23 to 46% has been identified in the above buildings. Energy audit study has been implemented in Rashtrapati Bhawan. Implementation work in Prime Minister Office, Sharam Shakti Bhawan and Transport.

(C) Technology:

The new generation industrial plants installed in India have excellent energy efficiency norms comparable with the best and most energy efficient plants in the world. This shows the deep penetration of advanced energy efficient technologies in many of the Indian industrial plants. For example, in Indian cement plants, the technology penetration is very high and the energy efficiency norms are comparable to the best energy efficient plants in the world.

Further, some of the Indian steel plants are already undergoing a process of modernization and are adopting more energy efficient practices. Technology updating is also positive in the Indian Power and Pulp and paper sector. These has been commendable progress in energy efficient technologies employed in thermal and electric utilities.

Use of fluidized bed boilers and furnaces, variable frequency drives, energy efficient pumps, fans, compressors and cooling towers are widely employed in Indian industries. Energy efficient compact fluorescent lamps and electronic ballasts are penetrating domestic, commercial and industrial sector at a very faster rate. Standard and labeling program of EC Act will further boost manufacturing and adoption of energy efficient technologies.

The increasing preference for commercial energy has led to a sharp increase in the demand for electricity and fossil fuels. Use of fossil fuels has resulted in emission of huge quantity of carbon dioxide causing serious environmental damages. There is still a considerable potential for reducing energy consumption by adopting energy efficiency measures at various sectors of our country.

Energy efficiency will not only reduce the need to create new capacity requiring high investment, but also result in substantial environmental benefits. With the enactment of the Energy Conservation Act, 2001, a legal framework is now available for promoting energy efficiently in all sectors of the economy. Efficient use of energy and its conservation will succeed as a program if opinion leaders and captains of industry take the lead in supporting the conservation program.

Essay # 6. State-Wise Electricity Consumption and Conservation Potential in Indian Economy:

There are several estimates of energy efficiency and conservation potential in the Indian economy. Most of them have based their assessment at the macro level taking note of some demonstration projects that were implemented in various sectors.

Prominent amongst them are the Integrated Energy Policy (2006) that provides an estimate of energy saving potential in the Indian economic activity of 15-20%, the ADB study (2004) of demand side management potential in industry, buildings, municipalities and the very recent national mission for enhanced energy efficiency that seeks to unlock a market potential of Rs. 74,000 crores and an avoided capacity addition of 19,000 MW.

In this background, it is necessary to assess detailed potential in each sector and in each state, given that the implementation of the energy conservation Act, 2001 is with the state governments through their notified state designated agencies (SDAs).

BEE, with the approval of ministry of power, has initiated a scheme for capacity building of SDAs during the current plan period. A19 point state level energy conservation action plan (ECAP) has been evolved for 32 states/UTs and is under implementation.

As a part of the program, it was considered necessary to carry out a detailed assessment state-wise in some key sectors of the economy. National productivity council (NPC), an autonomous organization under the ministry of commerce, government of India, was tasked to undertake this work in all 35 states/UTs.

The study focused only on estimation of the total electricity consumption and saving potential in the following sectors of each state/UT:

i. Agricultural pumping.

ii. Municipal water and sewage pumping, street lighting.

iii. Commercial buildings like hotel/resorts, hospital, shopping mall/ multiplex, office building, public park/monument having connected load of more than 500 kW.

iv. Representative small and medium enterprises (SMEs) which have high saving potential.

NPC constituted dedicated teams for all states in order to conduct this study. Data collection questionnaires for each of the four sectors were prepared and sent to the different organizations. Support of SDAs and local distribution companies were also taken for gathering details of the entities in each sector and ascertaining their energy consumption.

The data collected was analyzed and validated by data collected from distribution companies to make them robust, complete and uniform. In addition, energy audit results of audits conducted by individual entities or other organizations engaged in this purpose to ascertain a reasonable energy saving potential in each sector in the state.

The methodology employed by NPC for this purpose is as under:

(a) Data Collection:

Directly from the organizations in the state engaged in each sector by way of questionnaires designed for this purpose.

(b) Data Collation and Validation:

By verification of data from third party sources like DISCOM, industry associations at the state level.

(c) Data Verification:

On a sample basis by field visits to facilities.

(d) Assessment of Potential:

By conduct of sample audit studies in certain facilities and by survey of similar audits conducted by the entities at the state level in the recent past.

In addition to the above, the study also looks at the large industries and the household sector. For this purpose the consumption reported in the report of central electricity authority titled All India Electricity Statistics 2009: General Review 2009, was adopted for the two sectors. The energy saving potential was assessed based on the experience gained in implementing programs in industry and household sector by BEE and NPC.

In this connection, the following methodology was adopted:

(a) Industry Sector:

The national energy conservation awards provided the basis of assessment of electrical savings in large industries. The evaluation of awards conducted by BEE and NPC over the last 17 years has indicated an average electrical savings of around 7-10%. In estimating the potential for saving, the study has adopted the lower of the range, i.e. 7%.

(b) Domestic Sector:

The potential for savings has been estimated on the basis of several studies carried out by various organizations. The assessment is based on the potential in both urban and rural households and also the different income strata.

For the urban households, the studies indicate a conservative potential of 15-20% while in the rural household it is assessed at 40-50%. The difference is essentially due to the fact that in rural/semi-urban segments, the main load is lighting where the efficiency gains are potentially much higher than others. In light of this, the study has used 20% as the potential in the domestic sector.

India has a long history of promoting energy efficiency through various national level institutions, which include BEE, PCRA, IREDA, NPC, NCB, TERI, CII and FICCI. After the enactment of Energy Conservation Act-2001, these institutions have become more active. Though each institutions has a different role and approach, they all are working for a common cause of energy conservation.

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