Energy Efficiency Made Simple Vol IV 2015

An industry that is competitive is an energy efficient industry. Energy efficiency is no longer simply efficient devices – it entails understanding your system, the way it operates, and how it can be optimised to be efficient. This implies a rethink of how we do business, and it involves all the people in your organisation. They are part of the system.

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Changing the organogram for optimal energy management Y de Lange, EnergyTraining Foundation

What is energy efficiency? The word energy efficiency is so often used - and confused: Simply purchasing the latest and greatest technology does not mean you are energy efficient. The general definition for energy efficiency is understood as the system boundary that lies between your energy input and your useful work output (see Figure 1 ). It is similar to managing a bank account. The budget is the financial boundary that lies between your deposits and your expenses. Within the budget is where you control that optimised use of your cash. View energy efficiency in the same way. What is interesting to note from the Ernst & Young survey quoted (see page 35) is that, globally, organisations are indicating that a formalised energy efficiency programme through an energy management system is the way to go, ahead of many of the other solutions mooted, such as generating your own power. The energy management system will optimise energy efficiency programmes through ensuring that proper skills and expertise can drive them towards sustained competitiveness in your industry, on top of saving energy.

This is how the energy industry is changing – finance and carbon tax reductions, deductions and even investment financing will eventually only be granted to those with an energy management system. Engi- neers cannot hold accountants responsible for not investing in energy efficiency without knowing that their investment is securely managed. Why is energy efficiency internationally supported as the preferred solution? As regularly reported in respected journals, saving energy should be approached in a constructive manner so that the system boundary ‘spending and wasting’ can be controlled by following the first steps (see Figure 2 ). • Behavioural change: Up to 30% savings – this would require min- imal investment which could include continuous communication, awareness and training at all levels within the organisation • Operational efficiency: Between 10 - 40% savings – merely identifying problem and energy waste areas and implementing and managing corrective measures could require minimal investment if managed by a trained professional • Equipment efficiency: Between 5 - 10% savings – merely identi- fying opportunities to improve efficiency of existing equipment and implementing and managing this could require minimal investment if managed by a trained professional • Technology changes: Up to 60% savings – major investment opportunities could be identified for these types of savings. However, if it is not implemented and managed continuously by a trained professional the ROI won’t be maximised and the savings might be short-lived The golden thread is the importance of managing the processes through a trained professional as the options that need to be explored can become complex, and the calculations to ensure the energy sav- ings remain and improve need to be acquired and practised.

System Boundary (Eg Services, goods, processes)

Energy In

Useful work Out

ƞ = 0.9

Purchase 1.1 units

Useful work 1 unit

How can you save energy?

Accounting In

Useful work Out

R = budget

Income/Deposits

Your expenses

Figure 1: Energy management system verses an accounting system – do you run a business without an accounting system?

Save 0-30%

Save 10-40%

Save 5-10%

Save up to 60%

In many instances, South African organisations that embark on energy efficiency purchase technologies and equipment before ensuring that there is a department that understands how to define an approach (energy boundary or budget) to work within the boundary of the system. Only when an energy management system is in place can a decision be made regarding what is required to ensure the optimal performance of any investments, including technological investments.

Change Behaviour

Operational Efficiency

Equipment Efficiency

Change Technology

Improve component efficiency

If you do not need it do not use it

Match usage to requirement

New improved Processes

Figure 2: The potential for energy saving, courtesy under licence to the EnTF from the AEE CEM.

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ENERGY EFFICIENCY MADE SIMPLE 2015