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1.1
Among the practices that arise from this definition are the following: ELIMINATE WASTE: Ensure that energy is used at the highest possible efficiency. MAXIMISE EFFICIENCY: Utilise the most appropriate technologyfrom a business case perspectiveto meet organisational needs. OPTIMISE SUPPLY: Purchase or supply energy at the lowest possible cost.
Energy management takes many different forms. It may vary from simple maintenance and operational activities that ensure equipment and systems use energy efficiently and effectively, to capital intensive installation of new, more efficient technology. It may involve fuel switching to energy sources that are inherently more economical for a given application.
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countries which do have commitmentsfor example, the EU, Canada, and Japan. The opportunity to sell credits from energy efficiency projects offers a major opportunity for South African companies to reduce their energy consumption cost-effectively.
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1.2
Three Questions: 1 What are your top three operating expenses? For many organisations, the answer to that question includes energy (electricity, coal and fuel), labour and materials expenses. Through careful management, by what percentage could you reduce each expense? One possible answer to this question is presented in Figure 1.1. The magnitude of each expense is represented along with the manageable component the potential cost savings. Many companies have realised as much as 25% savings in energy costs by implementing an energy management program. What priority should energy management receive? On the basis of the amount spent, energy often ranks third on the list behind labour and materials. However, if we rank these cost centres in terms of the potential for savings, many companies find that energy moves to the first priority position. In fact, in this illustration, energy management would deliver about twice the savings that materials management would and five times Energy is a manageable what labour cost management offers. expense perhaps your most manageable expense!
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(R 1,000's)
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Energy
Labour
Materials
1.3
The experience of organisations that successfully manage their energy use indicates that technological solutions alone do not achieve maximum energy savings, and are less likely to be sustained in the long term. Rather, energy management has the greatest impact when organisations address these three dimensions:
technical--the energy consuming devices and systems that use energy efficiently, or inefficiently organisational--the structure and management systems that can support or hinder the achievement of energy efficiency goals
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Behavioral
human behavioural--the personal values, attitudes and practices of individuals in the organisation that impact on energy use.
There are cases to demonstrate that a focus on people alonetheir awareness of energy efficiency as corporate priority, their values and attitudes towards energy use, and their skills and knowledge related to the management and use of energy systemscan achieve significant and sustainable savings. The combination of these two approaches technological and human resourcestypically yields the best result. Many cases can be found to demonstrate the wisdom of addressing the three dimensions of energy management listed above. One such case follows.
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1.4
This Course
This course is designed to develop the knowledge and skills related to organisational performance that energy managers need to implement and sustain effective practices. While we recognise that it is necessary to understand the technology of energy efficiency, many industrial organisations all over the world report that the most important barriers to improving energy efficiency are not the lack of technical knowledge, but rather the lack of sufficient organisational capacity to manage energy leadership, information management, related skills and knowledge of workers, and other management practices. This course focuses on the management side of the issue. It does address the technical dimension by means of an energy assessment methodology. However, it does not deal with the technological questionswhat it is about technology that makes it efficient or inefficient, how maintenance impacts efficiency, and so on; we leave these questions for other training courses. In sequence, then, the topics we will address are:
how to approach the implementation of energy management strategically (Module 2) organisational capacityhow to assess it, and how to grow it (Module 3) energy policythe role that it plays, and how to develop a good one (Module 4) structuring the organisation for energy managementensuring accountability and effectiveness (Module 5) training and communicating for energy managementensuring that employees have the skills, knowledge and information they need (Module 6) energy monitoring, targeting and reportingusing energy information to manage consumption downward (Module 7)
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developing the business caseanalysing the financial merits of energy management measures, and presenting a persuasive business case to obtain approval (Module 8) assessing energy use and identifying savings opportunitiesseven practical steps (Module 9).
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