Energy Efficiency Made Simple Vol IV 2015

In a recent survey undertaken by Ernst and Young (E&Y) [1], almost 40% of large corporations in the world see energy costs rising over the next five years, with expected increases of at least 15%. In South Africa, the National Energy Regulator (NERSA) is continuously faced with applications by Eskom for similar increases as is globally expected. However, for us it is annual increases and will amount to more than five times what is globally expected. The E&Y survey indicates that 92% of respondents view energy saving as the primary objective that major corpora- tions strive towards to contain the anticipated increases and become more competitive. An overwhelming majority has a formal strategy implemented with 82% indicating that energy efficiency programmes will be increased during the next five years. If this survey’s findings ring true - that international organisations are reacting aggressively towards curbing a mere 15% increase over five years through energy savings - it should ring warning bells with a 15%+ increase looming annually over the next five years for South Africa. Are we moving in a similar direction? What are our prior- ities compared to those of the international organisations? Is energy efficiency, through committed energy strategies and management programmes, and human resources, at the top of our boardroom agenda? ISO 50 001 [4] is based on the Plan Do Check Act (PDCA) continual improvement framework and incorporates energy management into everyday organisational practices. ISO is the point at which all com- panies should start when considering energy savings projects, even before considering generating your own electricity through renewables. It is the first step to safeguarding that, when the energy efficiency road is taken, it is within a controlled ‘budget’ to ensure its success. How- ever, to ensure it remains part of everyday organisational practice the appropriately qualified and trained human resources need to be in place. ISO requires that energy management is implemented and reviewed by Top Management – it is where the commitment to support and continually improve the effectiveness is required. Top management is defined as: A person or a group of people who directs and controls an organisation at the highest level. It is top management’s responsibility to embrace the responsibility of drawing up an energy policy to build a sustainable energy manage- ment system and regular review is required to close the responsibility loop. Top management is steered through ISO to appoint a manage- ment representative with the appropriate skills and competence, as well as an energy management team. Resources must be provided that include human resources, specialised skills, as well as technology and financial resources. A person should be qualified and experienced in effectively executing tasks like: • Identifying energy savings opportunities through energy auditing or energy use measurement data, and/or be able to interpret the results of the data presented from an energy audit • Conducting and documenting an energy planning process and an energy action plan • Being able to understand the organisation’s holistic operations and production processes and challenges • Being knowledgeable about the legal and other requirements that are affected by implementing energy projects and energy saving interventions • Implementing an energy baseline and the consequent baseline adjustments to ensure continuous energy savings are strived for

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International trend Prioritising energy efficiency and employee education seems to be a main component of international organisations’ energy policies. The Association of Energy Engineers (AEE) conducted a survey of the energy industry [2] where almost 80% of respondents have set goals within energy management policies that need to be attained. Although most of the organisations indicated that they have, as part of their policy, the implementation of renewable and alternative energies, the leading component prioritised, by far, was energy efficiency, which ranked 87% on the list, with employee education to reach the targets in second position at 67,4%, and environmental impact coming in at 62,3% as a third priority. In another AEE survey on the Green Jobs [3] in the world, indi- cations were clear that within these management plans specialist human resource skills are a given – with permanent positions in energy management departments to ensure the sustainability of the energy plans. Within the organograms, the titles of project manager and energy consultant seem to make up 50% of the job descriptions, with about 24% carrying the title of energy manager and the remainder shared be- tween utility account managers, facility managers, contractors, energy executives and energy services companies as an outsourced service. Even during tough economic times, globally the survey [3] indicates that about 64% of companies are maintaining their energy management staffing levels, whilst just over 28% of these companies are adding to their staff complement, with the balance making staff reductions. The reason given: During the recession years recently experienced, and being experienced globally, the ‘cleantech’ segments of the energy economy outperformed the national economy as a whole. Rising threats of increases make it more pertinent to remain competitive by using resources more ‘resourcefully’. South African context Managing and measuring energy is like managing and measuring a commodity that you cannot see, which makes it a complex task that needs specialised skills. However, in South African energy man- agement departments, although many energy managers have been trained in South Africa, these positions mostly form a secondary level of commitment to such a person’s main job function. The main job functions are found to be quite demanding in most instances, like running a plant or an engineering and maintenance department. Where there is an energy manager appointed within an organisation with energy management as the main function, the tendency is to add another secondary portfolio which is just as demanding. Most South African energy managers do not have a team to assist. Where there is a team, managing energy is an item on a list of activities of the team members owing to the multi-skilling culture that exists in South Africa. This trend does not collaborate with the international action taken to ensure competitive development through energy efficiency and continuing with such practice is in contradiction to what is international best practice. Aligning human resources with ISO 50 001 and international trends The internationally tried and tested energy management systems have been captured for international use in the ISO 50 001:2011 – the standard for Energy Management Systems [4].

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ENERGY EFFICIENCY MADE SIMPLE 2015