Energy management

Energy management includes planning and operation of energy production and energy consumption units. Objectives are resource conservation, climate protection and cost savings, while the users have permanent access to the energy they need. It is connected closely to environmental management, production management, logistics and other established business functions. The VDI-Guideline 4602 released a definition which includes the economic dimension: “Energy management is the proactive, organized and systematic coordination of procurement, conversion, distribution and use of energy to meet the requirements, taking into account environmental and economic objectives”.

One of initial steps for an effective energy cost control program is the base line energy assessment, which examines the pattern of existing energy usage by the government or any sub-entity of the government or private organization. This program will set the reference point for improvements in energy efficiency. Energy efficiency can improve the existing energy usage and benchmarking of every individual section such as area, sub-area and the industry etc .

It is important to integrate the energy management in the organizational structure, so that the energy management can be implemented. Responsibilities and the interaction of the decision makers should be regularized. The delegation of functions and competencies extend from the top management to the executive worker. Furthermore, a comprehensive can ensure the fulfillment of the tasks.

It is advisable to establish a separate organizational unit “energy management” in large or energy-intensive companies. This unit supports the senior management and keeps track. It depends on the basic form of the organizational structure, where this unit is connected. In case of a functional organization the unit is located directly between the first (CEO) and the second hierarchical level (corporate functions such as production, procurement, marketing). In a divisional organization, there should be a central and several sector-specific energy management units. So the diverse needs of the individual sectors and the coordination between the branches and the head office can be fulfilled. In a matrix organization the energy management can be included as a matrix function and thus approach most functions directly.

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